Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.19.1
Segment Reporting
 3 Months Ended
Mar. 30, 2019
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 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. 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), and datacenter and professional GPUs. The Company also licenses portions of its IP portfolio; and

•
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. The Company also licenses 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 also includes employee stock-based compensation expense.
The following table provides a summary of net revenue and operating income by segment: 
 
Three Months Ended
 
March 30,
2019
 
March 31,
2018
 
(In millions)
Net revenue:
 
 
 
Computing and Graphics
$
831

 
$
1,115

Enterprise, Embedded and Semi-Custom
441

 
532

Total net revenue
$
1,272

 
$
1,647

Operating income (loss):
 
 
 
Computing and Graphics
$
16

 
$
138

Enterprise, Embedded and Semi-Custom
68

 
14

All Other (1)
(46
)
 
(32
)
Total operating income
$
38

 
$
120

(1) All Other operating losses consisted of $41 million of stock-based compensation expense and a $5 million contingent loss in connection with a legal matter for the three months ended March 30, 2019 and $32 million stock-based compensation expense for the three months ended March 31, 2018.