Segment Reporting

9 Months Ended

Sep. 25, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Management, including the Chief Operating Decision Maker, who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue and operating income (loss). These performance measures include the allocation of expenses to the operating segments based on management’s judgment. The Company has the following two reportable segments:

•the Computing and Graphics segment, which primarily includes desktop and notebook microprocessors, accelerated processing units that integrate microprocessors and graphics, chipsets, discrete graphics processing units (GPUs), data center and professional GPUs and development services. From time to time, the Company may also sell or license portions of its IP portfolio.

•the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles. From time to time, the Company may also sell or license portions of its IP portfolio.

In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the

reportable segments because management does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes employee stock-based compensation expense and acquisition-related costs.

The following table provides a summary of net revenue and operating income by segment: 

	Three Months Ended				Nine Months Ended
	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
	(In millions)
Net revenue:
Computing and Graphics	$	2,398	$	1,667	$	6,748	$	4,472
Enterprise, Embedded and Semi-Custom	1,915		1,134		4,860		2,047
Total net revenue	$	4,313	$	2,801	$	11,608	$	6,519
Operating income (loss):
Computing and Graphics	$	513	$	384	$	1,524	$	846
Enterprise, Embedded and Semi-Custom	542		141		1,217		148
All Other (1)	(107)		(76)		(300)		(195)
Total operating income	$	948	$	449	$	2,441	$	799

(1) For the three and nine months ended September 25, 2021, all other operating losses included $99 million and $267 million of stock-based compensation expense and $8 million and $33 million of acquisition-related costs, respectively. For the three and nine months ended September 26, 2020, all other operating losses were related to stock-based compensation expense.