Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business is organized, managed and internally and externally reported as segments differentiated by the regional markets we serve: Americas, Europe, North Asia and South Asia. Each of these geographic segments has responsibility for selling all of our product lines.

We evaluate segment performance based on revenue and operating income (loss). Revenue for each segment is generally based on customer location where the product is shipped. The operating income (loss) reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. Corporate and unallocated amounts include litigation settlement expense, goodwill impairment, intangible asset abandonment, research and development expense, corporate expense, stock-based compensation expense, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments.

Net revenue and operating income (loss) by segment were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Net Revenue
Americas	$	117.3	$	141.4	$	373.6	$	427.3
Europe	44.3		56.8		149.0		183.2
North Asia	62.0		75.3		194.4		229.6
South Asia	24.6		35.1		83.5		108.0
Total	$	248.2	$	308.6	$	800.5	$	948.1

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2012			2011			2012			2011
Operating Income (Loss)
Americas	$	(0.5	)	$	(0.8	)	$	3.0		$	2.3
Europe	(1.9		)	4.6			(5.8		)	7.8
North Asia	0.7			(0.3		)	2.8			9.1
South Asia	(0.5		)	1.4			0.8			2.3
Corporate and unallocated	(4.3		)	(13.2		)	(26.5		)	(42.5		)
Total	$	(6.5	)	$	(8.3	)	$	(25.7	)	$	(21.0	)

We have three major product categories: traditional storage, secure and scalable storage, and audio and video information. Traditional storage products include optical products, magnetic products and other traditional storage media products. Optical products include primarily DVDs, CDs and Blu-ray disc recordable media. Magnetic products include primarily data storage tape media. Other traditional storage products include primarily optical drives and audio and video tape media. Secure and scalable storage products include flash memory and hard disk drive products, including encrypted and biometric universal serial bus (USB) drives, encrypted and biometric hard disk drives, secure portable desktop solutions, and software solutions, including products which contain various security features such as password authentication, encryption and remote manageability, RDX cartridges and drives, and data protection and data archive appliances. Audio and video information products include primarily audio electronics such as portable stereo systems, iPod® docking stations and accessories, and other accessories such as CD and DVD jewel cases and headphones.

Net revenue by major product category was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Net Revenue
Traditional storage
Optical products	$	97.0	$	126.8	$	317.8	$	383.8
Magnetic products	68.3		76.9		215.0		244.7
Other traditional storage	3.2		13.0		11.7		38.6
Total traditional storage	168.5		216.7		544.5		667.1
Secure and scalable storage	44.5		48.2		147.3		156.3
Audio and video information	35.2		43.7		108.7		124.7
Total	$	248.2	$	308.6	$	800.5	$	948.1

See Note 16 - Subsequent Event for discussion of the acceleration of our strategic transformation that was announced on October 24, 2012, which includes the realignment of our global business into two new business units to be effective at year-end. We will be assessing the impact of this realignment on our reporting segments during the fourth quarter of 2012. Any changes in our reporting segments will be reported as of December 31, 2012.