Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

 v2.3.0.11
Segment Reporting
 6 Months Ended
Jul. 02, 2011
Segment Reporting  
Segment Reporting

NOTE 8. Segment Reporting

Management, including the Chief Operating Decision Maker, who is the Company's interim Chief Executive Officer and the Chief Financial Officer, reviews and assesses operating performance using segment net revenues and operating income (loss) before interest, other income (expense), equity income (loss) and dilution gain in investee and income taxes. These performance measures include the allocation of expenses to the operating segments based on management's judgment.

The Company uses the following two reportable operating segments:

 

  •  

the Computing Solutions segment, which includes microprocessors, chipsets and embedded processors; and

 

  •  

the Graphics segment, which includes graphics, video and multimedia products as well as revenue received in connection with the development and sale of game console systems that incorporate the Company's graphics technology.
 

In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category includes certain expenses and credits that are not allocated to any of the operating segments because management does not consider these expenses and credits in evaluating the performance of the operating segments. Also included in this category are amortization of acquired intangible assets, stock-based compensation expense and restructuring charges. The All Other category also includes the results of the Handheld business because the Company expects that the operating results of this business will continue to be immaterial.

 

The following table provides a summary of net revenue and operating income (loss) by segment:

 

                                 
     Quarter Ended     Six Months Ended  
     July 2,
2011		     June 26,
2010		     July 2,
2011		     June 26,
2010		  
     (In millions)  

Net revenue:

                                 

Computing Solutions

    $ 1,207      $ 1,212      $ 2,407      $ 2,372   

Graphics

      367        440        780        849   

All Other

      —          1        —          6   
                                  

Total net revenue

    $ 1,574      $ 1,653      $ 3,187      $ 3,227   
                                  
         

Operating income (loss):

                                 

Computing Solutions

    $ 142      $ 128      $ 242      $ 274   

Graphics

      (7 )      33        12        80   

All Other

      (30 )      (36 )     (95 )      (47 )
                                  

Total operating income

    $ 105      $ 125      $ 159      $ 307