Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.24.2
Segment Reporting
 6 Months Ended
Jun. 29, 2024
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), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers;
•the Client segment, which primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers;
•the Gaming segment, which primarily includes discrete GPUs, and semi-custom SoC products and development services; and
•the Embedded segment, which primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), 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, inventory loss at contract manufacturer, acquisition-related and other costs, and licensing gain. Acquisition-related and other 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 (loss) by segment: 
Three Months Ended Six Months Ended
June 29,
2024		 July 1,
2023		 June 29,
2024		 July 1,
2023
(In millions)
Net revenue:
Data Center $ 2,834  $ 1,321  $ 5,171  $ 2,616 
Client 1,492  998  2,860  1,737 
Gaming 648  1,581  1,570  3,338 
Embedded 861  1,459  1,707  3,021 
Total net revenue $ 5,835  $ 5,359  $ 11,308  $ 10,712 
Operating income (loss):  
Data Center $ 743  $ 147  $ 1,284  $ 295 
Client 89  (69) 175  (241)
Gaming 77 225  228 539 
Embedded 345 757  687 1,555 
All Other(1)
(985) (1,080) (2,069) (2,313)
Total operating income (loss) $ 269  $ (20) $ 305  $ (165)
(1)
For the three and six months ended June 29, 2024, all other operating losses primarily included $603 million and $1.2 billion of amortization of acquisition-related intangibles, and $346 million and $717 million of stock-based compensation expense, respectively.

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, and $348 million and $657 million of stock-based compensation expense, respectively.