Quarterly report pursuant to Section 13 or 15(d)

Operating Segments Information

Operating Segments Information
3 Months Ended
Mar. 29, 2014
Operating Segment Information [Abstract]  
Operating Segment Information [Text Block]
Note 20: Operating Segments Information
Our operating segments in effect as of March 29, 2014 include:
•    PC Client Group
•    All other
•    Data Center Group
•    Non-Volatile Memory Solutions Group
•    Internet of Things Group
•    Netbook Group
•    Mobile and Communications Group
•    New Devices Group
•    Software and services operating segments
•    McAfee
•    Software and Services Group
In the first three months of 2014, we formed the Internet of Things Group, which includes platforms and software-optimized for the Internet of Things market segment. Additionally, we changed our organizational structure to align with our critical objectives, which changed information that our Chief Operating Decision Maker (CODM) reviews for purposes of allocating resources and assessing performance. After the reorganization, we have nine operating segments: PC Client Group (PCCG), Data Center Group (DCG), Internet of Things Group (IOTG), Mobile and Communication Group (MCG), McAfee, Software and Services Group, Non-Volatile Memory Solutions Group, Netbook Group, and New Devices Group. All prior-period amounts have been adjusted retrospectively to reflect these operating segment changes, as well as other minor reorganizations.
The CODM is our Chief Executive Officer. The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss).
PCCG, DCG, and MCG are our reportable operating segments. IOTG and the aggregated “software and services operating segments” as shown in the preceding operating segment list, do not meet the quantitative thresholds to qualify as reportable operating segments; however, we have elected to disclose the results of these non-reportable operating segments. Our Non-Volatile Memory Solutions Group, Netbook Group, and New Devices Group operating segments do not meet the quantitative thresholds to qualify as reportable segments and their combined results are included within the “all other” category.

Revenue for our reportable and aggregated non-reportable operating segments is primarily related to the following product lines:
PC Client Group. Includes platforms designed for the notebook (including Ultrabook devices and 2 in 1 systems) and the desktop (including all-in-ones and high-end enthusiast PCs); wireless and wired connectivity products; as well as home gateway and set-top box components.
Data Center Group. Includes platforms designed for the server, workstation, networking, and storage computing market segments.
Internet of Things Group. Includes platforms designed for embedded applications for medical, automotive, industrial, retail, and other market segments; as well as software-optimized products for the embedded and mobile market segments. 
Mobile and Communications Group. Includes platforms designed for the tablet and smartphone market segments; and mobile communications components such as baseband processors, radio frequency transceivers, Wi-Fi, Bluetooth® technology, global navigation satellite systems, and power management chips.
Software and services operating segments. Includes software products for endpoint security, network and content security, risk and compliance, and consumer and mobile security from our McAfee business, and software products and services that promote Intel architecture as the platform of choice for software development.
We have sales and marketing, manufacturing, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments, and the expenses are included in the operating results reported below.
The “all other” category includes revenue, expenses, and charges such as:
results of operations from our Non-Volatile Memory Solutions Group, Netbook Group, and New Devices Group;
amounts included within restructuring and asset impairment charges;
a portion of profit-dependent compensation and other expenses not allocated to the operating segments;
divested businesses for which discrete operating results are not regularly reviewed by our CODM;
results of operations of startup businesses that support our initiatives, including our foundry business; and
acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.
The CODM does not evaluate operating segments using discrete asset information. Operating segments do not record inter-segment revenue. We do not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Although the CODM uses operating income to evaluate the segments, operating costs included in one segment may benefit other segments. Except for these differences, the accounting policies for segment reporting are the same as for Intel as a whole.
Net revenue and operating income (loss) for each period were as follows:
Three Months Ended
(In Millions)
Mar 29,
Mar 30,
Net revenue:
PC Client Group


Data Center Group


Internet of Things Group


Mobile and Communications Group


Software and services operating segments


All other


Total net revenue


Operating income (loss):
PC Client Group


Data Center Group


Internet of Things Group


Mobile and Communications Group
Software and services operating segments
All other
Total operating income