Intel 2012 Annual Report Download - page 100
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Our PC Client Group and our Data Center Group are reportable operating segments. We also aggregate and disclose the
financial results of our non-reportable operating segments within “other Intel architecture operating segments” and
“software and services operating segments” as shown in the preceding operating segments list. Each of the operating
segments within the aggregated operating segments does not meet the quantitative thresholds to qualify as reportable
operating segments; however, we have elected to disclose the aggregation of these non-reportable operating segments.
Revenue for our reportable and aggregated non-reportable operating segments is primarily related to the following
product lines:
• PC Client Group. Includes platforms designed for the notebook (including Ultrabook™, detachable, and
convertible systems) and desktop (including high-end enthusiast PCs) market segments; and wireless connectivity
products.
• Data Center Group. Includes platforms designed for the server, workstation, and storage computing market
segments; and wired network connectivity products.
• Other Intel architecture operating segments. Includes platforms designed for embedded applications; mobile
phone components such as baseband processors, radio frequency transceivers, and power management chips;
platforms designed for the netbook market segment; platforms designed for the tablet market segment; platforms
designed for the smartphone market segment; and gateway and set-top box components.
• Software and services operating segments. Includes software products for endpoint security, network and
content security, risk and compliance, and consumer and mobile security from our McAfee business; software
optimized products for the embedded and mobile market segments; and software products and services that promote
Intel® architecture as the platform of choice for software development.
We have sales and marketing, manufacturing, finance, and administration groups. Expenses for these groups are
generally allocated to the operating segments, and the expenses are included in the operating results reported in the table
that follows.
The “All other” category includes revenue, expenses, and charges such as:
• results of operations from our Non-Volatile Memory Solutions Group that includes NAND flash memory products
for use in a variety of devices;
• a portion of profit-dependent compensation and other expenses not allocated to the operating segments;
• divested businesses for which discrete operating results are not reviewed by our CODM;
• results of operations of seed businesses that support our initiatives; and
• acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and
goodwill.
The CODM does not evaluate operating segments using discrete asset information. Based on the interchangeable nature
of our manufacturing and assembly and test assets, most of the related depreciation expense is not directly identifiable
within our operating segments as it is included in overhead cost pools and subsequently absorbed into inventory as each
product passes through our manufacturing process. As our products are then sold across multiple operating segments, it
is impracticable to determine the total depreciation expense included as a component of each operating segment’s
operating income (loss) results. 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. Except
for these differences, the accounting policies for segment reporting are the same as for Intel as a whole.