Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.22.0.1
Segment Reporting
12 Months Ended
Dec. 25, 2021
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 microprocessors, accelerated processing units that integrate microprocessors and graphics, chipsets, discrete 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 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 and acquisition-related costs.
The following table provides a summary of net revenue and operating income (loss) by segment for 2021, 2020 and 2019.
December 25, 2021 December 26, 2020 December 28, 2019
  (In millions)
Net revenue:
Computing and Graphics $ 9,332  $ 6,432  $ 4,709 
Enterprise, Embedded and Semi-Custom 7,102  3,331  2,022 
Total net revenue $ 16,434  $ 9,763  $ 6,731 
Operating income (loss):
Computing and Graphics $ 2,090  $ 1,266  $ 577 
Enterprise, Embedded and Semi-Custom 1,979  391  263 
All Other (421) (288) (209)
Total operating income $ 3,648  $ 1,369  $ 631 

The following table provides items included in All Other category:
December 25, 2021 December 26, 2020 December 28, 2019
  (In millions)
Operating loss:    
Stock-based compensation expense $ (379) $ (274) $ (197)
Acquisition-related costs (42) (14) — 
Loss contingency on legal matter —  —  (12)
Total operating loss $ (421) $ (288) $ (209)
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:
December 25, 2021 December 26, 2020 December 28, 2019
  (In millions)
United States $ 4,656  $ 2,294  $ 1,764 
China (including Hong Kong) 4,096  2,329  1,736 
Japan 2,381  1,033  840 
Europe 1,249  1,108  762 
Taiwan 2,091  1,187  719 
Singapore 1,389  1,096  597 
Other countries 572  716  313 
Total sales to external customers $ 16,434  $ 9,763  $ 6,731 
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:
December 25, 2021 December 26, 2020 December 28, 2019
Customer A 14  % * 12  %
Customer B 11  % * *
*
Less than 10%
Sales to customer A consisted of products primarily from the Enterprise, Embedded and Semi-Custom segment and sales to customer B consisted of products primarily from the Computing and Graphics segment.
The following table summarizes Property and equipment, net by geographic areas:
December 25,
2021
December 26,
2020
  (In millions)
United States $ 486  $ 421 
Canada 105  126 
China 35  34 
Singapore 35  32 
Other countries 41  28 
Total property and equipment, net $ 702  $ 641