Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.22.2
Segment Reporting
 6 Months Ended
Jun. 25, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Management, including the Chief Operating Decision Maker (CODM), 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 reportable segments based on management’s judgment. In the second quarter of fiscal year 2022, the Company updated its segment reporting structure to align financial reporting with the manner in which the Company manages its business in strategic end markets. The Company’s disclosed measure of segment operating results has been updated consistent with the revised manner in which the Company’s CODM assesses the company’s financial performance and allocates resources. All prior-period segment data have been retrospectively adjusted.
The Company’s four reportable segments are:
•the Data Center segment, which primarily includes server microprocessors, GPUs, data processing units (DPUs), FPGAs and adaptive SoC products for data centers;
•the Client segment, which primarily includes microprocessors, accelerated processing units that integrate microprocessors and graphics, and chipsets for desktop and notebook personal computers;
•the Gaming segment, which primarily includes discrete GPUs, semi-custom SoC products and development services; and
•the Embedded segment, which primarily includes embedded microprocessors, GPUs, FPGAs, adaptive SoC products, and ACAP products.
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 the CODM does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes amortization of acquisition-related intangibles, employee stock-based compensation expense, acquisition-related costs and licensing gain.
The following table provides a summary of net revenue and operating income by segment: 
Three Months Ended Six Months Ended
June 25,
2022		 June 26,
2021		 June 25,
2022		 June 26,
2021
(In millions)
Net revenue:
Data Center $ 1,486  $ 813  $ 2,779  $ 1,423 
Client 2,152  1,728  4,276  3,366 
Gaming 1,655  1,255  3,530  2,410 
Embedded 1,257  54  1,852  96 
Total net revenue $ 6,550  $ 3,850  $ 12,437  $ 7,295 
Operating income (loss):  
Data Center $ 472  $ 204  $ 899  $ 314 
Client 676  538  1,368  1,068 
Gaming 187  175  545  296 
Embedded 641  6  918  3 
All Other (1)
(1,450) (92) (2,253) (188)
Total operating income $ 526  $ 831  $ 1,477  $ 1,493 
(1)
For the three and six months ended June 25, 2022, all other operating losses primarily included $1.0 billion and $1.5 billion of amortization of acquisition-related intangibles, $292 million and $491 million of stock-based compensation expense and $141 million and $349 million of acquisition-related costs, respectively.
For the three and six months ended June 26, 2021, all other operating losses primarily included $83 million and $168 million of stock-based compensation expense $10 million and $25 million of acquisition-related costs, respectively.