Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.20.4
Segment Reporting
 12 Months Ended
Dec. 26, 2020
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). 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), data center and professional GPUs and development services. From time to time, the Company may also sell or license portions of its IP portfolio.
•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. From time to time, the Company may also sell or license 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 primarily includes employee stock-based compensation expense.
The following table provides a summary of net revenue and operating income (loss) by segment for 2020, 2019 and 2018.
2020 2019 2018
  (In millions)
Net revenue:
Computing and Graphics $ 6,432  $ 4,709  $ 4,125 
Enterprise, Embedded and Semi-Custom 3,331  2,022  2,350 
Total net revenue $ 9,763  $ 6,731  $ 6,475 
Operating income (loss):
Computing and Graphics $ 1,266  $ 577  $ 470 
Enterprise, Embedded and Semi-Custom 391  263  163 
All Other (288) (209) (182)
Total operating income $ 1,369  $ 631  $ 451 

The following table provides items included in All Other category:
2020 2019 2018
  (In millions)
Operating loss:    
Stock-based compensation expense $ (274) $ (197) $ (137)
Acquisition-related costs (14) —  — 
Impairment of technology licenses —  —  (45)
Loss contingency on legal matter —  (12) — 
Total operating loss $ (288) $ (209) $ (182)
The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information.
The following table summarizes sales to external customers by geographic regions based on billing location of the customer:
2020 2019 2018
  (In millions)
United States $ 2,294  $ 1,764  $ 1,327 
China (including Hong Kong) 2,329  1,736  1,319 
Japan 1,033  840  1,225 
Europe 1,108  762  470 
Taiwan 1,187  719  1,197 
Singapore 1,096  597  728 
Other countries 716  313  209 
Total sales to external customers $ 9,763  $ 6,731  $ 6,475 
The following table summarizes sales to major customers that accounted for at least 10% of the Company’s consolidated net revenue for the respective years:
2020 2019 2018
Customer A * 12  % 19  %
Customer B * * 11  %
*
Less than 10%
Sales to customers A and B consisted of products from the Company’s Enterprise, Embedded and Semi-Custom segment.
The following table summarizes Property and equipment, net by geographic areas:
December 26,
2020		 December 28,
2019
  (In millions)
United States $ 421  $ 300 
Canada 126  99 
China 34  36 
Singapore 32  33 
Other countries 28  32 
Total property and equipment, net $ 641  $ 500