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Re: alan81 post# 151291

Saturday, 07/31/2021 8:49:03 PM

Saturday, July 31, 2021 8:49:03 PM

Post# of 151631
“Are they building out Aurora or something? “

Well this is very interesting, Frankly I see intriguing positives that Intel is focusing the future on machine learning and AI and especially with the deployment of 5g. The question that was asked in the CC about the roughly $300 million charge apparently pertains to the the “Reorganization and Other Charges” of $346 million appearing in the current quarter's P&L statement. According to the CC the charge relates to the reorganization of the Data Center Segment into two separate business units and also ties to Intel Federal which is an Intel wholly owned subsidiary corporation that conducts business with Federal agencies. In other words it appears certain of the assets perhaps manufacturing assets of Intel Federal have become obsolete as a result of the reorganization and values are written off in this quarter. The future results? Promising? We shall see.

George Davis -- Chief Financial Officer
Yeah, let me -- I'll start with the onetime charge. Without going into too much detail, it is related to our high-performance compute activities through our Intel federal. It's crystallized in Q4 at the time that we execute a contract. So that's the reason for the timing.
Pat Gelsinger -- Chief Executive Officer
Yeah, and I would just say the HPC business for us, consistent with the reorg that we just announced, C.J., we just see a huge opportunity for us. As we start delivering our GPU, HPC specialized versions of the Xeon product, we see a great opportunity. The reorg brings more focus on this business. So even though there's a onetime charge in Q4, we see this as a great business for us for the long term and one that just will bring many, many technological market and business benefits.
https://newsroom.intel.com/news-releases/intel-forms-new-subsidiary-intel-federal-llc/#gs.7agnsw
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