Intel 2009 Annual Report Download - page 119

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Wisconsin Alumni Research Foundation v. Intel Corporation
In February 2008, the Wisconsin Alumni Research Foundation filed an action for patent infringement against Intel in the U.S.
District Court for the Western District of Wisconsin. The complaint generally alleged that Intel infringed U.S. Patent No.
5,781,752 by making, using, offering for sale, importing, and/or selling certain of Intel’s microprocessors, including the Intel
®
Core
TM
2 Duo processor family with Smart Memory Access and any other microprocessor using the same or a similar memory
disambiguation technique. In 2009, we entered into a settlement agreement pursuant to which, among other things, we made a
payment to the Wisconsin Alumni Research Foundation in exchange for a license to certain patents. The settlement agreement
did not significantly impact our results of operations or cash flows.
Note 29: Operating Segment and Geographic Information
At the end of 2009, we reorganized our business to better align our major product groups around the core competencies of
Intel architecture and our manufacturing operations. After the reorganization, we have nine operating segments, including PC
Client Group, Data Center Group, Embedded and Communications Group, Digital Home Group, Ultra-Mobility Group,
NAND Solutions Group, Wind River Software Group, Software and Services Group, and Digital Health Group. All prior
-
period amounts have been adjusted retrospectively to reflect the new organizational structure.
The Chief Operating Decision Maker (CODM) is our President and Chief Executive Officer. The CODM allocates resources
to and assesses the performance of each operating segment using information about its revenue and operating income (loss).
Our PC Client Group and our Data Center Group are reportable operating segments. We also aggregate and disclose the
financial results of the following non-reportable operating segments, whose product lines are based on Intel architecture:
Embedded and Communications Group, Digital Home Group, and Ultra-Mobility Group. These non-reportable operating
segments are aggregated, as they have similar economic characteristics and their operations are similar in nature. These
aggregated operating segments do not meet the quantitative thresholds to qualify as reportable operating segments; however,
we have chosen to disclose the aggregation of these non-reportable operating segments into the “other Intel architecture
operating segments” category. Revenue for our reportable and aggregated non-reportable operating segments is primarily
related to the following product lines:
Our NAND Solutions Group, Wind River Software Group, Software and Services Group, and Digital Health Group operating
segments do not meet the quantitative thresholds to qualify as reportable segments and are included within the “other
operating segments” category.
Revenue within the “corporate”
category is primarily related to divested businesses for which discrete operating results are not
reviewed by our CODM to assess performance and allocate resources. This includes revenue related to our NOR flash memory
and cellular and handheld businesses, as well as revenue and expenses related to supply and service agreements that were
entered into as part of these divestitures (see “Note 16: Divestitures”).
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 below.
108
•
PC Client Group.
Includes microprocessors and related chipsets and motherboards designed for the desktop (including
high
-
end enthusiast PCs), notebook, and netbook market segments; and wireless connectivity products.
•
Data Center Group.
Includes microprocessors and related chipsets and motherboards designed for the server,
workstation, and storage computing market segments; and wired network
connectivity products.
• Other Intel architecture operating segments. Includes microprocessors and related chipsets for embedded applications
and products designed for the ultra-
mobile market segment, which includes various handheld devices; and products for
the consumer electronics market segments.