Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting (Notes)

v2.4.0.8
Segment Reporting (Notes)
 9 Months Ended
Sep. 27, 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 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. In connection with the Company’s continued strategic transformation, effective July 1, 2014, the Company realigned its organizational structure. As a result of this organizational change, 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; and
•
the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and
embedded processors, dense servers, semi-custom System-on-Chip (SoC) products, engineering services
and royalties.
Effective October 8, 2014, Dr. Lisa T. Su became the Company's Chief Executive Officer, succeeding Rory P. Read. This management change did not result in a change in the Company's reportable segments or to the fact that the Chief Operating Decision Maker is the Chief Executive Officer.
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. Also included in this category are amortization of acquired intangible assets, employee stock-based compensation expense, net, restructuring and other special charges (gains) 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, the prior period results have been restated to reflect the Company's new reportable segments:
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 27,
2014
 
September 28,
2013
 
September 27,
2014
 
September 28,
2013
 
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
 
Computing and Graphics
 
$
781

 
$
925

 
$
2,470

 
$
2,832

Enterprise, Embedded and Semi-Custom
 
648

 
536

 
1,797

 
878

Total net revenue
 
$
1,429

 
$
1,461

 
$
4,267

 
$
3,710

Operating income (loss):
 
 
 

 
 
 

Computing and Graphics
 
$
(17
)
 
$
9

 
$
(20
)
 
$
(86
)
Enterprise, Embedded and Semi-Custom
 
108

 
92

 
290

 
166

All Other
 
(28
)
 
(6
)
 
(95
)
 
(112
)
Total operating income (loss)
 
$
63

 
$
95

 
$
175

 
$
(32
)