Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 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, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.
The following table provides a summary of net revenue and operating income by segment: 
Three Months Ended Nine Months Ended
September 30,
2023		 September 24,
2022		 September 30,
2023		 September 24,
2022
(In millions)
Net revenue:
Data Center $ 1,598  $ 1,609  $ 4,214  $ 4,388 
Client 1,453  1,022  3,190  5,298 
Gaming 1,506  1,631  4,844  5,161 
Embedded 1,243  1,303  4,264  3,155 
Total net revenue $ 5,800  $ 5,565  $ 16,512  $ 18,002 
Operating income (loss):  
Data Center $ 306  $ 505  $ 601  $ 1,404 
Client 140  (26) (101) 1,342 
Gaming 208 142  747 687
Embedded 612 635  2,167  1,553 
All Other(1)
(1,042) (1,320) (3,355) (3,573)
Total operating income (loss) $ 224  $ (64) $ 59  $ 1,413 
(1)
For the three and nine months ended September 30, 2023, all other operating losses primarily included $660 million and $2.2 billion of amortization of acquisition-related intangibles, $353 million and $1.0 billion of stock-based compensation expense and $39 million and $184 million of acquisition-related costs, respectively.
For the three and nine months ended September 24, 2022, all other operating losses primarily included $1.0 billion and $2.5 billion of amortization of acquisition-related intangibles, $275 million and $766 million of stock-based compensation expense and $51 million and $400 million of acquisition-related costs, respectively.