Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting (Notes)

v2.4.0.8
Segment Reporting (Notes)
 6 Months Ended
Jun. 28, 2014
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 revenues 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.
As of June 28, 2014, the Company used the following two reportable segments:
•
the Computing Solutions segment, which primarily includes x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), chipsets, embedded processors and dense servers; and
•
the Graphics and Visual Solutions segment, which primarily includes graphics processing units (GPUs), including professional graphics, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles.
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 operating segments because management does not consider these expenses and credits in evaluating the performance of the operating segments. Also included in this category are amortization of acquired intangible assets, employee stock-based compensation expense, net restructuring and other special charges and workforce rebalancing severance charges. The Company also reported the results of former businesses in the All Other category because the operating results were not material.
The following table provides a summary of net revenue and operating income (loss) by segment:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 28,
2014
 
June 29,
2013
 
June 28,
2014
 
June 29,
2013
 
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
 
Computing Solutions
 
$
669

 
$
841

 
$
1,332

 
$
1,592

Graphics and Visual Solutions
 
772

 
320

 
1,506

 
657

Total net revenue
 
$
1,441

 
$
1,161

 
$
2,838

 
$
2,249

Operating income (loss):
 
 
 

 
 
 

Computing Solutions
 
$
9

 
$
2

 
$
6

 
$
(37
)
Graphics and Visual Solutions
 
82

 
—

 
173

 
16

All Other
 
(28
)
 
(31
)
 
(67
)
 
(106
)
Total operating income (loss)
 
$
63

 
$
(29
)
 
$
112

 
$
(127
)


In connection with the Company’s continued strategic transformation, effective as of July 1, 2014, the Company realigned its organizational structure. As a result of this organizational change, the Company will have the following two reportable segments:
•
the Computing and Graphics segment, which will primarily include desktop and notebook processors, chipsets, discrete GPUs and professional graphics; and
•
the Enterprise, Embedded and Semi-Custom segment, which will primarily include server and embedded processors, dense servers, semi-custom SoC products, development services and technology for game consoles.

The Company will present the effects of these new reportable segments in its segment financial data as of July 1, 2014, including any applicable restatements of prior period results to reflect these new reportable segments. The reportable segments used and disclosed in this quarterly report are based on the Company’s organizational structure in effect as of June 28, 2014.