Operating Segments

12 Months Ended

Dec. 30, 2017

Segment Reporting [Abstract]

Operating Segments

Note 4: Operating Segments

We manage our business through the following operating segments:

•   Client Computing Group (CCG)

•    Data Center Group (DCG)

•    Internet of Things Group (IOTG)

•    Non-Volatile Memory Solutions Group (NSG)

•    Programmable Solutions Group (PSG)

•    All other

In the third quarter of 2017, we completed our tender offer for the outstanding ordinary shares of Mobileye B.V. (Mobileye), formerly known as Mobileye N.V. In the second quarter of 2017, we completed the planned divestiture of the Intel Security Group (ISecG). The results for both are reported within the "all other" category. For further information, see "Note 10: Acquisitions and Divestitures."

The Chief Operating Decision Maker (CODM) is our Chief Executive Officer (CEO). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss).

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

CCG and DCG are our reportable operating segments. IOTG, NSG, and PSG 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. 

We have sales and marketing, manufacturing, engineering, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments.

The "all other" category includes revenue and expenses such as:

• results of operations from non-reportable segments not otherwise presented;

• historical results of operations from divested businesses;

• results of operations of start-up businesses that support our initiatives, including our foundry business;

• amounts included within restructuring and other charges;

• a portion of employee benefits, compensation, and other expenses not allocated to the operating segments; 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 and we do not identify or allocate assets by operating segments. Based on the interchangeable nature of our manufacturing and assembly and test assets, most of the related depreciation expense is not directly identifiable within our operating segments, as it is included in overhead cost pools and subsequently absorbed into inventory as each product passes through our manufacturing process. As our products are then sold across multiple operating segments, it is impracticable to determine the total depreciation expense included as a component of each operating segment’s operating income (loss) results. 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:

Years Ended (In Millions)	Dec 30, 2017			Dec 31, 2016			Dec 26, 2015
Net revenue:
Client Computing Group
Platform	$	31,226		$	30,751		$	30,680
Adjacent	2,777			2,157			1,539
	34,003			32,908			32,219
Data Center Group
Platform	17,439			15,895			14,856
Adjacent	1,625			1,341			1,125
	19,064			17,236			15,981
Internet of Things Group
Platform	2,645			2,290			1,976
Adjacent	524			348			322
	3,169			2,638			2,298
Non-Volatile Memory Solutions Group	3,520			2,576			2,597
Programmable Solutions Group	1,902			1,669			—
All other	1,103			2,360			2,260
Total net revenue	$	62,761		$	59,387		$	55,355
Operating income (loss):
Client Computing Group	$	12,919		$	10,646		$	8,166
Data Center Group	8,395			7,520			7,847
Internet of Things Group	650			585			515
Non-Volatile Memory Solutions Group	(260		)	(544		)	239
Programmable Solutions Group	458			(104		)	—
All other	(4,226		)	(5,229		)	(2,765		)
Total operating income	$	17,936		$	12,874		$	14,002

Disaggregated net revenue for each period was as follows:

Years Ended (In Millions)	Dec 30, 2017		Dec 31, 2016		Dec 26, 2015
Platform revenue
Desktop platform	$	11,647	$	12,371	$	12,754
Notebook platform	19,414		18,203		17,945
DCG platform	17,439		15,895		14,856
Other platform1	2,810		2,467		1,957
	51,310		48,936		47,512
Adjacent revenue2	10,917		8,290		5,858
ISecG divested business	534		2,161		1,985
Total revenue	$	62,761	$	59,387	$	55,355

¹  Includes our tablet, phone, service provider, and IOTG platform revenue.

²  Includes all of our non-platform products for CCG, DCG, and IOTG like modem, ethernet, and silicon photonic, as well as NSG, PSG, and Mobileye products.

Net revenue by country as presented below is based on the billing location of the customer. Revenue from unaffiliated customers for each period was as follows:

Years Ended (In Millions)	Dec 30, 2017		Dec 31, 2016		Dec 26, 2015
China (including Hong Kong)	$	14,796	$	13,977	$	11,679
Singapore	14,285		12,780		11,544
United States	12,543		12,957		11,121
Taiwan	10,518		9,953		10,661
Other countries	10,619		9,720		10,350
Total net revenue	$	62,761	$	59,387	$	55,355