Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.5.0.2
Segment Reporting
 9 Months Ended
Sep. 24, 2016
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 (loss) 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 graphics processing units (GPUs) and professional graphics; and
•
the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, technology for game consoles and licensing portions of its intellectual property 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. Also included in this category are, employee stock-based compensation expense, restructuring and other special charges, net, charge related to the Sixth Amendment to the WSA with GF and amortization of acquired intangible assets.
The following table provides a summary of net revenue and operating income (loss) by segment: 
 
Three Months Ended
 
Nine Months Ended
 
September 24,
2016
 
September 26,
2015
 
September 24,
2016
 
September 26,
2015
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
Computing and Graphics
$
472

 
$
424

 
$
1,367

 
$
1,335

Enterprise, Embedded and Semi-Custom
835

 
637

 
1,799

 
1,698

Total net revenue
$
1,307

 
$
1,061

 
$
3,166

 
$
3,033

Operating income (loss):
 
 
 
 
 
 
 
Computing and Graphics
$
(66
)
 
$
(181
)
 
$
(217
)
 
$
(403
)
Enterprise, Embedded and Semi-Custom
136

 
84

 
236

 
156

All Other
(363
)
 
(61
)
 
(388
)
 
(185
)
Total operating loss
$
(293
)
 
$
(158
)
 
$
(369
)
 
$
(432
)
The following table provides major items included in All Other category:
 
Three Months Ended
 
Nine Months Ended
 
September 24,
2016
 
September 26,
2015
 
September 24,
2016
 
September 26,
2015
 
(In millions)
Operating loss:
 
 
 
 
 
 
 
Stock-based compensation expense
$
(23
)
 
$
(13
)
 
$
(57
)
 
$
(47
)
Restructuring and other special charges, net
—

 
(48
)
 
10

 
(135
)
Charge related to the Sixth Amendment to the WSA with GF
(340
)
 
—

 
(340
)
 
—

Other
—

 
—

 
(1
)
 
(3
)
Total operating loss
$
(363
)
 
$
(61
)
 
$
(388
)
 
$
(185
)