Segment Reporting

12 Months Ended

Dec. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Management, including the Chief Operating Decision Maker (CODM), 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 reportable segments based on management’s judgment.

The Company’s four reportable segments are:

•the Data Center segment, which primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers;

•the Client segment, which primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers;

•the Gaming segment, which primarily includes discrete GPUs, and semi-custom SoC products and development services; and

•the Embedded segment, which primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.

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 the CODM does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes amortization of acquisition-related intangibles, employee stock-based compensation expense, acquisition-related and other costs, and licensing gain. Acquisition-related and other costs primarily include transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.

The following table provides a summary of net revenue and operating income (loss) by segment for 2023, 2022 and 2021.

	Year Ended
	December 30, 2023		December 31, 2022		December 25, 2021
	(In millions)
Net revenue:
Data Center	$	6,496	$	6,043	$	3,694
Client	4,651		6,201		6,887
Gaming	6,212		6,805		5,607
Embedded	5,321		4,552		246
Total net revenue	$	22,680	$	23,601	$	16,434
Operating income (loss):
Data Center	$	1,267	$	1,848	$	991
Client	(46)		1,190		2,088
Gaming	971		953		934
Embedded	2,628		2,252		44
All Other	(4,419)		(4,979)		(409)
Total operating income	$	401	$	1,264	$	3,648

The following table provides items included in All Other category:

	Year Ended
	December 30, 2023		December 31, 2022		December 25, 2021
	(In millions)
Operating loss:
Stock-based compensation expense	$	1,384	$	1,081	$	379
Acquisition-related and other costs	258		452		42
Amortization of acquisition-related intangibles	2,811		3,548		—
Licensing gain	(34)		(102)		(12)
Total operating loss	$	4,419	$	4,979	$	409

The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information.

The following table summarizes sales to external customers by geographic regions based on billing location of the customer:

	Year Ended
	December 30, 2023		December 31, 2022		December 25, 2021
	(In millions)
United States	$	7,837	$	8,049	$	4,656
Japan	4,629		4,177		2,381
China (including Hong Kong)	3,417		5,207		4,096
Singapore	2,231		1,380		1,389
Europe	2,030		1,773		1,249
Taiwan	1,841		2,369		2,091
Other countries	695		646		572
Total sales to external customers	$	22,680	$	23,601	$	16,434

The following table summarizes sales to major customers that accounted for at least 10% of the Company’s consolidated net revenue for the respective years:

		Year Ended
	Segment	December 30, 2023		December 31, 2022		December 25, 2021
Customer A	Gaming	18	%	16	%	14	%
Customer B	Client	*		*		11	%

* Less than 10%

The following table summarizes Property and equipment, net by geographic areas:

	December 30, 2023		December 31, 2022
	(In millions)
United States	$	1,143	$	1,102
Singapore	144		132
India	86		67
Canada	84		80
Ireland	46		48
China	42		42
Other countries	44		42
Total property and equipment, net	$	1,589	$	1,513