Intel 2013 Annual Report Download - page 110

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105
PCCG and DCG are our 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 above operating segments list. Each of these aggregated operating segments
does not meet the quantitative thresholds to qualify as a reportable operating segment; 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™ devices and 2 in 1
systems), desktop (including all-in-ones and high-end enthusiast PCs), and certain tablet market segments; and
wireless and wired 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 for
communications, medical, automotive, industrial, retail, and other market segments; mobile components such
as baseband processors, radio frequency transceivers, WiFi, Bluetooth®, global navigation satellite system, and
power management chips; platforms designed for the tablet market segment; platforms designed for the
smartphone market segment; gateway and set-top box components; and platforms designed for the netbook
market segment; delivering reference devices and technology platforms ready to be used by customers as well
as System-on-Chip architecture specifically designed for wearable and other emerging compute opportunities.
• 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
below.
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;
• amounts included within restructuring and asset impairment charges;
• 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 start-up businesses that support our initiatives, including our foundry business; 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.
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)