Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.2
Segment Reporting
 6 Months Ended
Jul. 01, 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) and graphics processing units (GPUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs) and Adaptive System-on-Chip (SoC) products for data centers;
•the Client segment, which primarily includes CPUs, accelerated processing units (APUs) that integrate CPUs and GPUs, and chipsets for desktop and notebook personal computers;
•the Gaming segment, which primarily includes discrete GPUs, semi-custom SoC products and development services; and
•the Embedded segment, which primarily includes embedded CPUs and GPUs, APUs, FPGAs 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 costs and licensing gain. Acquisition-related costs primarily include transaction costs, depreciation related to the Xilinx, Inc. (Xilinx) fixed assets fair value step-up adjustment, certain compensation charges, and contract termination costs.
The following table provides a summary of net revenue and operating income by segment: 
Three Months Ended Six Months Ended
July 1,
2023		 June 25,
2022		 July 1,
2023		 June 25,
2022
(In millions)
Net revenue:
Data Center $ 1,321  $ 1,486  $ 2,616  $ 2,779 
Client 998  2,152  1,737  4,276 
Gaming 1,581  1,655  3,338  3,530 
Embedded 1,459  1,257  3,021  1,852 
Total net revenue $ 5,359  $ 6,550  $ 10,712  $ 12,437 
Operating income (loss):  
Data Center $ 147  $ 472  $ 295  $ 899 
Client (69) 676  (241) 1,368 
Gaming 225 187  539 545
Embedded 757 641  1,555  918
All Other(1)
(1,080) (1,450) (2,313) (2,253)
Total operating income (loss) $ (20) $ 526  $ (165) $ 1,477 
(1)
For the three and six months ended July 1, 2023, all other operating losses primarily included $693 million and $1.5 billion of amortization of acquisition-related intangibles, $348 million and $657 million of stock-based compensation expense and $34 million and $145 million of acquisition-related costs, respectively.
For the three and six months ended June 25, 2022, all other operating losses primarily included $1.0 billion and $1.5 billion of amortization of acquisition-related intangibles, $292 million and $491 million of stock-based compensation expense and $141 million and $349 million of acquisition-related costs, respectively.