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Segment and Other Information | 12 Months Ended
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Aug. 28, 2025
Segment Reporting [Abstract] |
Segment and Other Information | Segment and Other Information We initiated a strategic reorganization of our business units to a market segment-focused business unit structure, with AI growth opportunities in every business unit. We completed the reorganization of our operations and organizational structure and began to manage operations under our new segment structure effective in the fourth quarter of 2025. As high-performance memory and storage become increasingly vital to drive the growth of AI, this business unit reorganization allows us to stay at the forefront of innovation in each market segment through deeper customer engagement and to address the dynamic needs of the industry. All prior-period segment amounts have been retrospectively adjusted to reflect the way our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), assesses the performance of our segments based on segment revenue, cost of goods sold, operating expenses, and operating income (loss). The segment information reported herein is regularly provided to and reviewed and evaluated by our CODM to budget, forecast, and decide how to allocate resources for capital investments, human capital, and other strategic investments across our segments. There are no changes to our Consolidated Financial Statements for any prior periods. We have the following four business units, which are our reportable segments: •Cloud Memory Business Unit (“CMBU”): Focused on memory solutions for large hyperscale cloud customers, and HBM for all data center customers. •Core Data Center Business Unit (“CDBU”): Focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. •Mobile and Client Business Unit (“MCBU”): Focused on memory and storage solutions for the mobile and client segments. •Automotive and Embedded Business Unit (“AEBU”): Focused on memory and storage solutions for the automotive, industrial, and consumer segments. Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income and expenses are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. Certain income and expenses are not allocated to segments because our CODM does not consider these amounts in the assessment of the performance of our segments. The unallocated amounts primarily include stock-based compensation, the impact of inventory NRV write-downs, gains and losses from settlements, restructure and asset impairment, and goodwill impairment.
For the year ended 2025 | CMBU | CDBU | MCBU | AEBU | All Other | Unallocated | Total
Revenue | $ | 13,524 |  | $ | 7,229 |  | $ | 11,859 |  | $ | 4,753 |  | $ | 13 |  | $ | — |  | $ | 37,378 |
Cost of goods sold | 5,867 |  | 3,995 |  | 8,650 |  | 3,566 |  | 14 |  | 413 |  | 22,505 |
Gross margin | 7,657 |  | 3,234 |  | 3,209 |  | 1,187 |  | (1) |  | (413) |  | 14,873 |
Research and development | 1,315 |  | 864 |  | 836 |  | 435 |  | — |  | 348 |  | 3,798 |
Selling, general, and administrative | 213 |  | 188 |  | 390 |  | 195 |  | — |  | 219 |  | 1,205 |
Restructure and asset impairment | — |  | — |  | — |  | — |  | — |  | 39 |  | 39 |
Other operating (income) expense, net | — |  | 2 |  | 2 |  | — |  | — |  | 57 |  | 61 |
Operating income (loss) | $ | 6,129 |  | $ | 2,180 |  | $ | 1,981 |  | $ | 557 |  | $ | (1) |  | $ | (1,076) |  | $ | 9,770 |
For the year ended 2024 | CMBU | CDBU | MCBU | AEBU | All Other | Unallocated | Total
Revenue | $ | 3,792 |  | $ | 4,984 |  | $ | 11,667 |  | $ | 4,631 |  | $ | 37 |  | $ | — |  | $ | 25,111 |
Cost of goods sold | 2,677 |  | 3,638 |  | 10,222 |  | 3,598 |  | 20 |  | (657) |  | 19,498 |
Gross margin | 1,115 |  | 1,346 |  | 1,445 |  | 1,033 |  | 17 |  | 657 |  | 5,613 |
Research and development | 769 |  | 960 |  | 994 |  | 425 |  | — |  | 282 |  | 3,430 |
Selling, general, and administrative | 107 |  | 139 |  | 485 |  | 186 |  | (1) |  | 213 |  | 1,129 |
Restructure and asset impairment | — |  | — |  | — |  | — |  | — |  | 1 |  | 1 |
Other operating (income) expense, net | (5) |  | (8) |  | (33) |  | (10) |  | — |  | (195) |  | (251) |
Operating income (loss) | $ | 244 |  | $ | 255 |  | $ | (1) |  | $ | 432 |  | $ | 18 |  | $ | 356 |  | $ | 1,304 |
For the year ended 2023 | CMBU | CDBU | MCBU | AEBU | All Other | Unallocated | Total
Revenue | $ | 1,872 |  | $ | 2,124 |  | $ | 7,394 |  | $ | 4,139 |  | $ | 11 |  | $ | — |  | $ | 15,540 |
Cost of goods sold | 1,801 |  | 1,967 |  | 9,072 |  | 2,905 |  | 4 |  | 1,207 |  | 16,956 |
Gross margin | 71 |  | 157 |  | (1,678) |  | 1,234 |  | 7 |  | (1,207) |  | (1,416) |
Research and development | 755 |  | 622 |  | 1,122 |  | 389 |  | — |  | 226 |  | 3,114 |
Selling, general, and administrative | 90 |  | 104 |  | 414 |  | 176 |  | (1) |  | 137 |  | 920 |
Restructure and asset impairment | — |  | — |  | — |  | — |  | — |  | 171 |  | 171 |
Other operating (income) expense, net | (6) |  | (6) |  | (25) |  | (11) |  | — |  | 172 |  | 124 |
Operating income (loss) | $ | (768) |  | $ | (563) |  | $ | (3,189) |  | $ | 680 |  | $ | 8 |  | $ | (1,913) |  | $ | (5,745) |
The table below presents the unallocated amounts:
For the year ended | 2025 | 2024 | 2023
Unallocated |  |  |
Cost of goods sold: |  |  |
Stock-based compensation | $ | 409 |  | $ | 312 |  | $ | 201 |
Provision to write down inventories to net realizable value | — |  | — |  | 1,831 |
Lower costs from sale of inventory written down in prior periods | — |  | (987) |  | (844) |
Other | 4 |  | 18 |  | 19 |
| 413 |  | (657) |  | 1,207 |
Research and development: |  |  |
Stock-based compensation | 347 |  | 296 |  | 226 |
Other | 1 |  | (14) |  | — |
| 348 |  | 282 |  | 226 |
Selling, general, and administrative: |  |  |
Stock-based compensation | 219 | 213 | 137
Restructure and asset impairment: | 39 |  | 1 |  | 171 |
Other operating (income) expense, net: |  |  |
Patent license charges | 57 |  | — |  | — |
Goodwill impairment | — |  | — |  | 101 |
Litigation settlement | — |  | — |  | 68 |
Patent cross-license agreement gain | — |  | (200) |  | — |
Other | — |  | 5 |  | 3 |
| 57 |  | (195) |  | 172 |
Total unallocated amounts | $ | 1,076 |  | $ | (356) |  | $ | 1,913 |
Depreciation and amortization expense included in operating income (loss) was as follows:
For the year ended | 2025 | 2024 | 2023
CMBU | $ | 2,260 |  | $ | 1,112 |  | $ | 909 |
CDBU | 1,530 |  | 1,434 |  | 1,020 |
MCBU | 3,177 |  | 3,762 |  | 4,319 |
AEBU | 1,375 |  | 1,447 |  | 1,486 |
All Other | 5 |  | 7 |  | 3 |
Unallocated | 5 |  | 18 |  | 19 |
| $ | 8,352 |  | $ | 7,780 |  | $ | 7,756 |
We do not identify or report internally our assets (other than goodwill) 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. As a result of reorganizing our segments in the fourth quarter of 2025, we reallocated goodwill among our reporting units on a relative fair value basis. We performed a quantitative goodwill impairment assessment for each of our reporting units immediately before and after our business unit reorganization. We concluded based on both our pre- and post-reorganization impairment assessments that goodwill was not impaired. As of August 28, 2025, CMBU, CDBU, MCBU, and AEBU had goodwill of $654 million, $109 million, $284 million, and $103 million, respectively. We performed a qualitative assessment for goodwill impairment in 2024 and did not identify any impairment indicators for our reporting units. Due to global and macroeconomic challenges, as well as lower expected demand resulting from customer actions to reduce elevated inventory levels, in 2023, we performed a quantitative assessment for goodwill impairment for each of our reporting units. We evaluated the fair value of our reporting units based on an income approach, using a discounted cash flow methodology. We recognized a $101 million charge in 2023, included in other operating income (loss) to impair all of the goodwill assigned to our former Storage Business Unit based on our best estimates of projected future cash flows at that time.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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