Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.2
Segment Reporting
 6 Months Ended
Jun. 27, 2020
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). 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), data center 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 primarily includes 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 27,
2020		 June 29,
2019		 June 27,
2020		 June 29,
2019
(In millions)
Net revenue:
Computing and Graphics $ 1,367    $ 940    $ 2,805    $ 1,771   
Enterprise, Embedded and Semi-Custom 565    591    913    1,032   
Total net revenue $ 1,932    $ 1,531    $ 3,718    $ 2,803   
Operating income (loss):  
Computing and Graphics $ 200    $ 22    $ 462    $ 38   
Enterprise, Embedded and Semi-Custom 33    89    7    157   
All Other (1)
(60)   (52)   (119)   (98)  
Total operating income $ 173    $ 59    $ 350    $ 97   
(1)
For the three months ended June 27, 2020, All Other operating loss was related to stock-based compensation expense. 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.

For the six months ended June 27, 2020, All Other operating loss 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.