Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.24.0.1
Segment Reporting
 12 Months Ended
Dec. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Management, including the Chief Operating Decision Maker (CODM), who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue and operating income (loss). These performance measures include the allocation of expenses to the reportable segments based on management’s judgment.
The Company’s four reportable segments are:

•the Data Center segment, which primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers;
•the Client segment, which primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers;
•the Gaming segment, which primarily includes discrete GPUs, and semi-custom SoC products and development services; and
•the Embedded segment, which primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
From time to time, the Company may also sell or license portions of its IP portfolio.
In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the reportable segments because the CODM does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes amortization of acquisition-related intangibles, employee stock-based compensation expense, acquisition-related and other costs, and licensing gain. Acquisition-related and other costs primarily include transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.
The following table provides a summary of net revenue and operating income (loss) by segment for 2023, 2022 and 2021.
Year Ended
December 30,
2023		 December 31,
2022		 December 25,
2021
(In millions)
Net revenue:
Data Center $ 6,496  $ 6,043  $ 3,694 
Client 4,651  6,201  6,887 
Gaming 6,212  6,805  5,607 
Embedded 5,321  4,552  246 
Total net revenue $ 22,680  $ 23,601  $ 16,434 
Operating income (loss):
Data Center $ 1,267  $ 1,848  $ 991 
Client (46) 1,190  2,088 
Gaming 971  953  934 
Embedded 2,628  2,252  44 
All Other (4,419) (4,979) (409)
Total operating income
$ 401  $ 1,264  $ 3,648 
The following table provides items included in All Other category:
Year Ended
December 30,
2023		 December 31,
2022		 December 25,
2021
  (In millions)
Operating loss:    
Stock-based compensation expense $ 1,384  $ 1,081  $ 379 
Acquisition-related and other costs 258  452  42 
Amortization of acquisition-related intangibles 2,811  3,548  — 
Licensing gain (34) (102) (12)
Total operating loss $ 4,419  $ 4,979  $ 409 
The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information.
The following table summarizes sales to external customers by geographic regions based on billing location of the customer:
Year Ended
December 30,
2023		 December 31,
2022		 December 25,
2021
  (In millions)
United States $ 7,837  $ 8,049  $ 4,656 
Japan 4,629  4,177  2,381 
China (including Hong Kong) 3,417  5,207  4,096 
Singapore 2,231  1,380  1,389 
Europe 2,030  1,773  1,249 
Taiwan 1,841  2,369  2,091 
Other countries 695  646  572 
Total sales to external customers $ 22,680  $ 23,601  $ 16,434 
The following table summarizes sales to major customers that accounted for at least 10% of the Company’s consolidated net revenue for the respective years:
Year Ended
Segment
 December 30,
2023		 December 31,
2022		 December 25,
2021
Customer A Gaming 18  % 16  % 14  %
Customer B Client * * 11  %
*
Less than 10%
The following table summarizes Property and equipment, net by geographic areas:
December 30,
2023		 December 31,
2022
  (In millions)
United States $ 1,143  $ 1,102 
Singapore 144  132 
India 86  67 
Canada 84  80 
Ireland 46  48 
China 42  42 
Other countries 44  42 
Total property and equipment, net $ 1,589  $ 1,513