Operating Segments

9 Months Ended

Sep. 25, 2021

Segment Reporting [Abstract]

Operating Segments

Note 2 : Operating Segments

We manage our business through the following operating segments:

▪CCG

▪DCG

▪IOTG

▪Mobileye

▪NSG

▪PSG

We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one product class. We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package based on Intel architecture. Platform products are used in various form factors across our CCG, DCG, and IOTG operating segments. Our non-platform, or adjacent products, can be combined with platform products to form comprehensive platform solutions to meet customer needs.

CCG and DCG are our reportable operating segments. IOTG, Mobileye, NSG, and PSG do not meet the quantitative thresholds to qualify as reportable operating segments; however, we have elected to disclose the results of these non-reportable operating segments. Our Internet of Things portfolio, presented as Internet of Things, is comprised of IOTG and Mobileye operating segments. In 2021, our DCG operating segment includes the results of our Intel® OptaneTM memory business, and our NSG operating segment is composed of our NAND memory business. Refer to "Note 8: Acquisitions and Divestitures" within Notes to Consolidated Condensed Financial Statements for further information on the pending divestiture of our NAND memory business.

We have an “all other” category that includes revenue, expenses, and charges such as:

▪results of operations from non-reportable segments not otherwise presented;

▪historical results of operations from divested businesses;

▪results of operations of start-up businesses that support our initiatives, including our foundry business;

▪amounts included within restructuring and other charges;

▪a portion of employee benefits, compensation, and other expenses not allocated to the operating segments; and

▪acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.

The CODM, who is our CEO, does not evaluate operating segments using discrete asset information. Operating segments do not record inter-segment revenue. We do not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Although the CODM uses operating income to evaluate the segments, operating costs included in one segment may benefit other segments. The accounting policies for segment reporting are the same as for Intel as a whole.

Net revenue and operating income (loss) for each period were as follows:

	Three Months Ended				Nine Months Ended
(In Millions)	Sep 25, 2021		Sep 26, 2020		Sep 25, 2021		Sep 26, 2020
Net revenue:
Client Computing Group
Platform	$	8,954	$	8,762	$	27,968	$	25,703
Adjacent	710		1,085		2,410		3,415
	9,664		9,847		30,378		29,118
Data Center Group
Platform	5,747		5,151		16,261		17,759
Adjacent	749		754		2,254		2,256
	6,496		5,905		18,515		20,015
Internet of Things
IOTG	1,042		677		2,940		2,230
Mobileye	326		234		1,030		634
	1,368		911		3,970		2,864
Non-Volatile Memory Solutions Group	1,105		1,153		3,310		4,150
Programmable Solutions Group	478		411		1,450		1,431
All other	81		106		873		311
Total net revenue	$	19,192	$	18,333	$	58,496	$	57,889
Operating income (loss):
Client Computing Group	$	3,317	$	3,554	$	11,197	$	10,621
Data Center Group	2,057		1,903		5,271		8,494
Internet of Things
IOTG	276		61		775		374
Mobileye	105		47		361		131
	381		108		1,136		505
Non-Volatile Memory Solutions Group	442		29		1,015		285
Programmable Solutions Group	76		40		246		217
All other	(1,046)		(575)		(4,398)		(2,328)
Total operating income	$	5,227	$	5,059	$	14,467	$	17,794

Disaggregated net revenue for each period was as follows:

	Three Months Ended				Nine Months Ended
(In Millions)	Sep 25, 2021		Sep 26, 2020		Sep 25, 2021		Sep 26, 2020
Platform revenue
CCG desktop platform	$	2,983	$	2,483	$	8,262	$	7,691
CCG notebook platform	5,953		6,275		19,655		17,976
CCG other platform1	18		4		51		36
DCG platform	5,747		5,151		16,261		17,759
IOTG platform	948		595		2,679		2,008
	15,649		14,508		46,908		45,470
Adjacent revenue2	3,543		3,825		11,588		12,419
Total revenue	$	19,192	$	18,333	$	58,496	$	57,889

1    Includes our tablet and service provider revenue.

2    Includes all of our non-platform products for CCG, DCG, and IOTG such as modem, Ethernet, and silicon photonics, as well as Mobileye, NSG, and PSG products, as well as revenue included in our "all other" category.