Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
 6 Months Ended
Jul. 01, 2017
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) 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 graphics processing units (GPUs) and professional graphics processors; and
•
the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, technology for game consoles and licensing portions of its intellectual property 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 and restructuring and other special charges, net.
The following table provides a summary of net revenue and operating income (loss) by segment: 
 
Three Months Ended
 
Six Months Ended
 
July 1,
2017
 
June 25,
2016
 
July 1,
2017
 
June 25,
2016
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
Computing and Graphics
$
659

 
$
435

 
$
1,252

 
$
895

Enterprise, Embedded and Semi-Custom
563

 
592

 
954

 
964

Total net revenue
$
1,222

 
$
1,027

 
$
2,206

 
$
1,859

Operating income (loss):
 
 
 
 
 
 
 
Computing and Graphics
$
7

 
$
(81
)
 
$
(8
)
 
$
(151
)
Enterprise, Embedded and Semi-Custom
42

 
84

 
51

 
100

All Other
(24
)
 
(11
)
 
(47
)
 
(25
)
Total operating income (loss)
$
25

 
$
(8
)
 
$
(4
)
 
$
(76
)
The following table provides major items included in All Other category:
 
Three Months Ended
 
Six Months Ended
 
July 1,
2017
 
June 25,
2016
 
July 1,
2017
 
June 25,
2016
 
(In millions)
Operating loss:
 
 
 
 
 
 
 
Stock-based compensation expense
$
(24
)
 
$
(18
)
 
$
(47
)
 
$
(34
)
Restructuring and other special charges, net
—

 
7

 
—

 
10

Other
—

 
—

 
—

 
(1
)
Total operating loss
$
(24
)
 
$
(11
)
 
$
(47
)
 
$
(25
)