Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.19.3
Segment Reporting
 9 Months Ended
Sep. 28, 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
 
Nine Months Ended
 
September 28,
2019

September 29,
2018
 
September 28,
2019

September 29,
2018
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
Computing and Graphics
$
1,276

 
$
938

 
$
3,047

 
$
3,139

Enterprise, Embedded and Semi-Custom
525

 
715

 
1,557

 
1,917

Total net revenue
$
1,801

 
$
1,653

 
$
4,604

 
$
5,056

Operating income (loss):
 
 
 
 
 
 
 
Computing and Graphics
$
179

 
$
100

 
$
217

 
$
355

Enterprise, Embedded and Semi-Custom
61

 
86

 
218

 
169

All Other (1)
(54
)
 
(36
)
 
(152
)
 
(101
)
Total operating income
$
186

 
$
150

 
$
283

 
$
423


(1) 
For all periods presented, All Other operating loss was related to stock-based compensation expense except for All Other operating loss of $152 million for the nine months ended September 28, 2019, which consisted of $140 million stock-based compensation expense and $12 million contingent loss accrual on a legal matter.