XML 48 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Information
12 Months Ended
Sep. 01, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information

Segment information reported herein is consistent with how it is reviewed and evaluated by our chief operating decision maker. We have the following four business units, which are our reportable segments:

Compute and Networking Business Unit ("CNBU"): Includes memory products sold into compute, networking, graphics, and cloud server markets.
Storage Business Unit ("SBU"): Includes memory products sold into enterprise, client, cloud, and removable storage markets. SBU also includes products sold to Intel through our IMFT joint venture.
Mobile Business Unit ("MBU"): Includes memory products sold into smartphone, tablet, and other mobile-device markets.
Embedded Business Unit ("EBU"): Includes memory products sold into automotive, industrial, connected home, and consumer electronics markets.

Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating expenses (income) are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. In the first quarter of 2017, we revised the measure of segment profitability reviewed by our chief operating decision maker and, as a result, certain items are no longer allocated to our business units. All periods have been revised to reflect these changes. Items not allocated are identified below.

We do not identify or report internally our assets or capital expenditures by segment, nor do we allocate gains and losses from equity method investments, interest, other non-operating income or expense items, or taxes to segments.

For the year ended
 
2016
 
2015
 
2014
Net sales
 
 
 
 
 
 
CNBU
 
$
4,529

 
$
6,725

 
$
7,333

SBU
 
3,262

 
3,687

 
3,480

MBU
 
2,569

 
3,692

 
3,627

EBU
 
1,939

 
1,999

 
1,774

All Other
 
100

 
89

 
144

 
 
$
12,399

 
$
16,192

 
$
16,358

 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
CNBU
 
$
(25
)
 
$
1,549

 
$
2,080

SBU
 
(123
)
 
(39
)
 
328

MBU
 
97

 
1,166

 
857

EBU
 
473

 
459

 
370

All Other
 
28

 
44

 
81

 
 
450

 
3,179

 
3,716

 
 
 
 
 
 
 
Unallocated
 
 
 
 
 
 
Flow-through of inventory step-up
 

 

 
(153
)
Stock-based compensation
 
(191
)
 
(167
)
 
(114
)
Restructure and asset impairments
 
(67
)
 
(3
)
 
(40
)
Rambus settlement
 

 

 
(233
)
Other
 
(24
)
 
(11
)
 
(89
)
 
 
(282
)
 
(181
)
 
(629
)
 
 
 
 
 
 
 
Operating income
 
$
168

 
$
2,998

 
$
3,087



Depreciation and amortization expense included in operating income was as follows:

For the year ended
 
2016
 
2015
 
2014
CNBU
 
$
1,141

 
$
1,053

 
$
874

SBU
 
844

 
761

 
495

MBU
 
580

 
512

 
473

EBU
 
379

 
321

 
225

All Other
 
20

 
9

 
13

Unallocated
 
16

 
11

 
23

 
 
$
2,980

 
$
2,667

 
$
2,103