Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting (Notes)

v3.2.0.727
Segment Reporting (Notes)
 6 Months Ended
Jun. 27, 2015
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, semi-custom System-on-Chip (SoC) products, engineering services and royalties.
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, restructuring and other special charges, net and workforce rebalancing severance charges.
The following table provides a summary of net revenue and operating income (loss) by segment. All period results presented reflect the Company's reportable segments:
 
 
Three Months Ended
 
Six Months Ended
 
June 27,
2015
 
June 28,
2014
 
June 27,
2015
 
June 28,
2014
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
Computing and Graphics
$
379

 
$
828

 
$
911

 
$
1,689

Enterprise, Embedded and Semi-Custom
563

 
613

 
1,061

 
1,149

Total net revenue
$
942

 
$
1,441

 
$
1,972

 
$
2,838

Operating income (loss):
 
 

 
 
 

Computing and Graphics
$
(147
)
 
$
(6
)
 
$
(222
)
 
$
(3
)
Enterprise, Embedded and Semi-Custom
27

 
97

 
72

 
182

All Other
(17
)
 
(28
)
 
(124
)
 
(67
)
Total operating income (loss)
$
(137
)
 
$
63

 
$
(274
)
 
$
112