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Operating Segments
 9 Months Ended
Sep. 28, 2019
Segment Reporting [Abstract]  
Operating Segments [Text Block]
NOTE 3 :
OPERATING SEGMENTS

We manage our business through the following operating segments:
•
Client Computing Group (CCG)
•
Data Center Group (DCG)
•
Internet of Things Group (IOTG)
•
Mobileye
•
Non-Volatile Memory Solutions Group (NSG)
•
Programmable Solutions Group (PSG)
•
All Other
We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone 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, Mobileye, 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. Our Internet of Things portfolio, presented as Internet of Things, is comprised of IOTG and Mobileye operating segments.
The “all other” category includes revenue, expenses, and charges 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 Chief Operating Decision Maker (CODM), which is our Chief Executive Officer (CEO), 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
 
Nine Months Ended
(In Millions)
 
Sep 28,
2019
 
Sep 29,
2018
 
Sep 28,
2019
 
Sep 29,
2018
Net revenue:
 
 
 
 
 
 
 
 
Client Computing Group
 
 
 
 
 
 
 
 
Platform
 
$
8,379

 
$
9,023

 
$
24,128

 
$
24,703

Adjacent
 
1,330

 
1,211

 
3,008

 
2,479

 
 
9,709

 
10,234

 
27,136

 
27,182

Data Center Group
 
 
 
 
 
 
 
 
Platform
 
5,819

 
5,637

 
14,854

 
15,561

Adjacent
 
564

 
502

 
1,414

 
1,361

 
 
6,383

 
6,139

 
16,268

 
16,922

Internet of Things
 
 
 
 
 
 
 
 
IOTG
 
1,005

 
919

 
2,901

 
2,639

Mobileye
 
229

 
191

 
639

 
515

 
 
1,234

 
1,110

 
3,540

 
3,154

 
 
 
 
 
 
 
 
 
Non-Volatile Memory Solutions Group
 
1,290

 
1,081

 
3,145

 
3,200

Programmable Solutions Group
 
507

 
496

 
1,482

 
1,511

All other
 
67

 
103

 
185

 
222

Total net revenue
 
$
19,190

 
$
19,163

 
$
51,756

 
$
52,191

 
 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
 
Client Computing Group
 
$
4,305

 
$
4,532

 
$
11,114

 
$
10,557

Data Center Group
 
3,115

 
3,082

 
6,756

 
8,421

 
 
 
 
 
 
 
 
 
Internet of Things
 
 
 
 
 
 
 
 
IOTG
 
309

 
321

 
854

 
791

Mobileye
 
67

 
52

 
188

 
106

 
 
376

 
373

 
1,042

 
897

 
 
 
 
 
 
 
 
 
Non-Volatile Memory Solutions Group
 
(499
)
 
160

 
(1,080
)
 
14

Programmable Solutions Group
 
92

 
106

 
233

 
304

All other
 
(942
)
 
(904
)
 
(2,827
)
 
(3,101
)
Total operating income
 
$
6,447

 
$
7,349

 
$
15,238

 
$
17,092


Disaggregated net revenue for each period was as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In Millions)
 
Sep 28,
2019
 
Sep 29,
2018
 
Sep 28,
2019
 
Sep 29,
2018
Platform revenue
 
 
 
 
 
 
 
 
Desktop platform
 
$
2,968

 
$
3,225

 
$
8,621

 
$
9,087

Notebook platform
 
5,393

 
5,774

 
15,456

 
15,549

DCG platform
 
5,819

 
5,637

 
14,854

 
15,561

IOTG platform
 
923

 
855

 
2,639

 
2,319

Other platform1
 
18

 
24

 
51

 
67

 
 
15,121

 
15,515

 
41,621

 
42,583

 
 
 
 
 
 
 
 
 
Adjacent revenue2
 
4,069

 
3,648

 
10,135

 
9,608

Total revenue
 
$
19,190

 
$
19,163

 
$
51,756

 
$
52,191


1 
Includes our tablet and service provider revenue.
2 
Includes all of our non-platform products for CCG, DCG, and IOTG such as modem, Ethernet, and silicon photonics, as well as Mobileye, NSG, and PSG products.
Planned divestiture of smartphone modem business
On July 25, 2019, we signed a definitive agreement to sell the majority of our smartphone modem business. We will continue to meet current customer commitments for our existing 4G smartphone modem product line. We expect to close the transaction, which will include certain employees, intellectual property, equipment and leases, in the fourth quarter of 2019. $235 million net assets of the modem business are classified as held for sale. We expect to record a gain on divestiture of approximately $500 million, net of tax.