Operating Segments

6 Months Ended

Jun. 27, 2020

Segment Reporting [Abstract]

Operating Segments [Text Block]

NOTE 2 : OPERATING SEGMENTS

We manage our business through the following operating segments:

•DCG

•IOTG

•Mobileye

•NSG

•PSG

•CCG

We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one class of product. We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package. Platform products are used in various form factors across our DCG, IOTG, and CCG operating segments. Our non-platform, or adjacent products, can be combined with platform products to form comprehensive platform solutions to meet customer needs.

DCG and CCG 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.

We have an “all other” category that 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 CODM, who is our 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. 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)	Jun 27, 2020		Jun 29, 2019		Jun 27, 2020		Jun 29, 2019
Net revenue:
Data Center Group
Platform	$	6,181	$	4,553	$	12,608	$	9,035
Adjacent	936		430		1,502		850
	7,117		4,983		14,110		9,885
Internet of Things
IOTG	670		986		1,553		1,896
Mobileye	146		201		400		410
	816		1,187		1,953		2,306
Non-Volatile Memory Solutions Group	1,659		940		2,997		1,855
Programmable Solutions Group	501		489		1,020		975
Client Computing Group
Platform	8,229		7,925		16,941		15,749
Adjacent	1,267		916		2,330		1,678
	9,496		8,841		19,271		17,427
All other	139		65		205		118
Total net revenue	$	19,728	$	16,505	$	39,556	$	32,566
Operating income (loss):
Data Center Group	$	3,099	$	1,800	6,591		$	3,641
Internet of Things
IOTG	70		294		313		545
Mobileye	(4)		53		84		121
	66		347		397		666
Non-Volatile Memory Solutions Group	322		(284)		256		(581)
Programmable Solutions Group	80		52		177		141
Client Computing Group	2,842		3,737		7,067		6,809
All other	(712)		(1,035)		(1,753)		(1,885)
Total operating income	$	5,697	$	4,617	$	12,735	$	8,791

Disaggregated net revenue for each period was as follows:

	Three Months Ended				Six Months Ended
(In Millions)	Jun 27, 2020		Jun 29, 2019		Jun 27, 2020		Jun 29, 2019
Platform revenue
DCG platform	$	6,181	$	4,553	$	12,608	$	9,035
IOTG platform	619		891		1,414		1,716
CCG desktop platform	2,368		2,767		5,208		5,653
CCG notebook platform	5,844		5,136		11,701		10,063
CCG other platform1	16		22		31		33
	15,028		13,369		30,962		26,500
Adjacent revenue2	4,700		3,136		8,594		6,066
Total revenue	$	19,728	$	16,505	$	39,556	$	32,566

¹ Includes our tablet and service provider revenue.

² Includes all of our non-platform products for DCG, IOTG, and CCG such as modem, Ethernet, and silicon photonics, as well as Mobileye, NSG, and PSG products.