Operating Segments

6 Months Ended

Jun. 26, 2021

Segment Reporting [Abstract]

Operating Segments

Note 2 : Operating Segments

We manage our business through the following operating segments:

▪CCG

▪DCG

▪IOTG

▪Mobileye

▪NSG

▪PSG

We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one product class. 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 CCG, DCG, and IOTG operating segments. Our non-platform, or adjacent products, can be combined with platform products to form comprehensive platform solutions to meet customer needs.

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. In 2021, our DCG operating segment includes the results of our Intel® OptaneTM memory business, and our NSG operating segment is composed of our NAND memory business. Refer to "Note 8: Acquisitions and Divestitures" within Notes to Consolidated Condensed Financial Statements for further information on the pending divestiture of our NAND memory business.

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 26, 2021		Jun 27, 2020		Jun 26, 2021		Jun 27, 2020
Net revenue:
Client Computing Group
Platform	$	9,397	$	8,229	$	19,014	$	16,941
Adjacent	712		1,267		1,700		2,330
	10,109		9,496		20,714		19,271
Data Center Group
Platform	5,703		6,181		10,514		12,608
Adjacent	752		936		1,505		1,502
	6,455		7,117		12,019		14,110
Internet of Things
IOTG	984		670		1,898		1,553
Mobileye	327		146		704		400
	1,311		816		2,602		1,953
Non-Volatile Memory Solutions Group	1,098		1,659		2,205		2,997
Programmable Solutions Group	486		501		972		1,020
All other	172		139		792		205
Total net revenue	$	19,631	$	19,728	$	39,304	$	39,556
Operating income (loss):
Client Computing Group	$	3,760	$	2,842	$	7,880	$	7,067
Data Center Group	1,941		3,099		3,214		6,591
Internet of Things
IOTG	287		70		499		313
Mobileye	109		(4)		256		84
	396		66		755		397
Non-Volatile Memory Solutions Group	402		322		573		256
Programmable Solutions Group	82		80		170		177
All other	(1,035)		(712)		(3,352)		(1,753)
Total operating income	$	5,546	$	5,697	$	9,240	$	12,735

Disaggregated net revenue for each period was as follows:

	Three Months Ended				Six Months Ended
(In Millions)	Jun 26, 2021		Jun 27, 2020		Jun 26, 2021		Jun 27, 2020
Platform revenue
CCG desktop platform	$	2,635	$	2,368	$	5,279	$	5,208
CCG notebook platform	6,743		5,844		13,702		11,701
CCG other platform1	19		16		33		31
DCG platform	5,703		6,181		10,514		12,608
IOTG platform	891		619		1,731		1,414
	15,991		15,028		31,259		30,962
Adjacent revenue2	3,640		4,700		8,045		8,594
Total revenue	$	19,631	$	19,728	$	39,304	$	39,556

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, as well as revenue included in our "all other" category.