Operating Segments Information

6 Months Ended

Jul. 01, 2017

Segment Reporting [Abstract]

Operating Segments Information [Text Block]

Note 3: Operating Segments Information

We manage our business through the following operating segments:

Client Computing Group (CCG)

Includes platforms designed for notebooks, 2 in 1 systems, desktops (including all-in-ones and high-end enthusiast PCs), tablets, phones, wireless and wired connectivity products, and mobile communication components.

Data Center Group (DCG)

Includes workload-optimized platforms for compute, storage, and network functions and related products designed for enterprise, cloud, and communication infrastructure market segments.

Internet of Things Group (IOTG)

Includes platforms designed for Internet of Things market segments, including retail, transportation, industrial, video, buildings and smart cities, along with a broad range of other market segments.

Non-Volatile Memory Solutions Group (NSG)

Includes Intel® Optane™ SSD products and NAND flash memory products primarily used in solid-state drives.

Programmable Solutions Group (PSG)

Includes programmable semiconductors primarily field-programmable gate array (FPGAs) and related products for a broad range of market segments, including communications, data center, industrial, military, and automotive.

All other

Includes results from our other non-reportable segments and corporate-related charges.

We offer platforms that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone System-on-Chip, or a multichip package. A platform may be enhanced by additional hardware, software, and services offered by Intel. Platforms are used in various form factors across our CCG, DCG, and IOTG operating segments. We derive a substantial majority of our revenue from platforms, which is our principal product.

The “all other” category includes revenue, expenses, and charges such as:

• results of operations from non-reportable segments;

• amounts included within restructuring and other 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 Chief Operating Decision Maker (CODM), who is our Chief Executive Officer;

• results of operations of start-up 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						Six Months Ended
(In Millions)	Jul 1, 2017			Jul 2, 2016			Jul 1, 2017			Jul 2, 2016
Net revenue:
Client Computing Group
Platform	$	7,634		$	6,938		$	15,031		$	14,137
Other	579			400			1,158			750
	8,213			7,338			16,189			14,887
Data Center Group
Platform	4,026			3,718			7,905			7,425
Other	346			309			699			601
	4,372			4,027			8,604			8,026
Internet of Things Group
Platform	614			497			1,246			1,068
Other	106			75			195			155
	720			572			1,441			1,223
Non-Volatile Memory Solutions Group	874			554			1,740			1,111
Programmable Solutions Group	440			465			865			824
All other	144			577			720			1,164
Total net revenue	$	14,763		$	13,533		$	29,559		$	27,235
Operating income (loss):
Client Computing Group	$	3,025		$	1,911		$	6,056		$	3,796
Data Center Group	1,661			1,765			3,148			3,529
Internet of Things Group	139			89			244			212
Non-Volatile Memory Solutions Group	(110		)	(224		)	(239		)	(319		)
Programmable Solutions Group	97			(62		)	189			(262		)
All other	(985		)	(2,161		)	(1,972		)	(3,070		)
Total operating income	$	3,827		$	1,318		$	7,426		$	3,886