Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.10.0.1
Segment Reporting
 6 Months Ended
Jun. 30, 2018
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 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 and integrated graphics processing units (GPUs), professional GPUs. 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 also includes employee 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 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
Computing and Graphics
$
1,086

 
$
661

 
$
2,201

 
$
1,234

Enterprise, Embedded and Semi-Custom
670

 
490

 
1,202

 
1,095

Total net revenue
$
1,756

 
$
1,151

 
$
3,403

 
$
2,329

Operating income (loss):
 
 
 
 
 
 
 
Computing and Graphics
$
117

 
$
7

 
$
255

 
$
(14
)
Enterprise, Embedded and Semi-Custom
69

 
16

 
83

 
71

All Other (1)
(33
)
 
(24
)
 
(65
)
 
(47
)
Total operating income (loss)
$
153

 
$
(1
)
 
$
273

 
$
10

(1) All Other operating loss is related to stock-based compensation expense for the three and six months ended June 30, 2018 and July 1, 2017.