XML 39 R21.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Reporting
12 Months Ended
Dec. 31, 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 CPUs and GPUs, DPUs, FPGAs and Adaptive SoC products for data centers;
the Client segment, which primarily includes CPUs, accelerated processing units that integrate microprocessors and GPUs (APUs), 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 CPUs and GPUs, FPGAs, and Adaptive SoC 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 (loss) by segment for 2022, 2021 and 2020.
Year Ended
December 31,
2022
December 25,
2021
December 26,
2020
(In millions)
Net revenue:
Data Center$6,043 $3,694 $1,685 
Client6,201 6,887 5,189 
Gaming6,805 5,607 2,746 
Embedded4,552 246 143 
Total net revenue$23,601 $16,434 $9,763 
Operating income (loss):
Data Center$1,848 $991 $198 
Client1,190 2,088 1,608 
Gaming953 934 (138)
Embedded2,252 44 (11)
All Other(4,979)(409)(288)
Total operating income (loss)$1,264 $3,648 $1,369 
The following table provides items included in All Other category:
Year Ended
December 31,
2022
December 25,
2021
December 26,
2020
 (In millions)
Operating loss:  
Stock-based compensation expense$1,081 $379 $274 
Acquisition-related costs452 42 14 
Amortization of acquisition-related intangibles3,548 — — 
Licensing gain(102)(12)— 
Total operating loss$4,979 $409 $288 
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:
Year Ended
December 31,
2022
December 25,
2021
December 26,
2020
 (In millions)
United States$8,049 $4,656 $2,294 
China (including Hong Kong)5,207 4,096 2,329 
Japan4,177 2,381 1,033 
Europe1,773 1,249 1,108 
Taiwan2,369 2,091 1,187 
Singapore1,380 1,389 1,096 
Other countries646 572 716 
Total sales to external customers$23,601 $16,434 $9,763 
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:
Year Ended
December 31,
2022
December 25,
2021
December 26,
2020
Customer A16 %14 %*
Customer B*11 %*
*
Less than 10%
Sales to customers A and B consisted of sales of products from the Gaming and Client segments, respectively.
The following table summarizes Property and equipment, net by geographic areas:
December 31,
2022
December 25,
2021
 (In millions)
United States$1,102 $486 
Canada80 105 
China42 35 
Singapore132 35 
India67 11 
Ireland48 — 
Other countries42 30 
Total property and equipment, net$1,513 $702