Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.19.2
Segment Reporting
 6 Months Ended
Jun. 29, 2019
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Management, including the Chief Operating Decision Maker, who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue and operating income before interest, other income (expense), net and income taxes. These performance measures include the allocation of expenses to the operating segments based on management’s judgment. The Company has the following two reportable segments:
•
the Computing and Graphics segment, which primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), datacenter and professional GPUs, and development services. The Company also licenses portions of its IP portfolio; and

•
the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles. The Company also licenses 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 management does not consider these expenses and credits in evaluating the performance of the reportable segments. This category also includes employee stock-based compensation expense.
The following table provides a summary of net revenue and operating income by segment: 
 
Three Months Ended
 
Six Months Ended
 
June 29,
2019
 
June 30,
2018
 
June 29,
2019
 
June 30,
2018
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
Computing and Graphics
$
940

 
$
1,086

 
$
1,771

 
$
2,201

Enterprise, Embedded and Semi-Custom
591

 
670

 
1,032

 
1,202

Total net revenue
$
1,531

 
$
1,756

 
$
2,803

 
$
3,403

Operating income (loss):
 
 
 
 
 
 
 
Computing and Graphics
$
22

 
$
117

 
$
38

 
$
255

Enterprise, Embedded and Semi-Custom
89

 
69

 
157

 
83

All Other (1)
(52
)
 
(33
)
 
(98
)
 
(65
)
Total operating income
$
59

 
$
153

 
$
97

 
$
273

(1) All Other operating loss of $52 million for the three months ended June 29, 2019 consisted of $45 million stock-based compensation expense
and $7 million contingent loss accrual on a legal matter. All Other operating loss of $33 million for the three months ended June 30, 2018
was related to stock-based compensation expense.
All Other operating loss of $98 million for the six months ended June 29, 2019 consisted of $86 million stock-based compensation expense
and $12 million contingent loss accrual on a legal matter. All Other operating loss of $65 million for the six months ended June 30, 2018
was related to stock-based compensation expense.