Business Segment Information and Geographic Data

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Business Segment Information and Geographic Data

Segment Information and Geographic Data

As of and for each of the years ended December 31, 2012, 2011 and 2010, our business was 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.

• Our Americas segment includes North America, Central America and South America.

• Our Europe segment includes Europe and parts of Africa.

• Our North Asia segment includes Japan, China, Hong Kong, Korea and Taiwan.

• Our South Asia segment includes Australia, Singapore, India, the Middle East and parts of Africa

For each of the years presented, we evaluated 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 impairments, intangible asset abandonment, research and development expense, corporate expense, stock-based compensation expense, contingent consideration adjustments, 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:

	Years Ended December 31,
	2012		2011		2010
	(In millions)
Net Revenue
Americas	$	504.7	$	595.9	$	712.9
Europe	208.8		248.0		289.8
North Asia	272.5		307.2		315.2
South Asia	113.6		139.3		143.0
Total	$	1,099.6	$	1,290.4	$	1,460.9

	Years Ended December 31,
	2012			2011			2012
	(In millions)
Operating Income (Loss)
Americas	$	2.9		$	8.4		$	36.8
Europe	(3.9		)	10.3			(0.6		)
North Asia	5.9			12.5			14.9
South Asia	0.6			4.0			4.0
Total segment operating income	5.5			35.2			55.1
Corporate and unallocated	(341.6		)	(68.3		)	(124.8		)
Total operating loss	(336.1		)	(33.1		)	(69.7		)
Interest income	(0.5		)	(0.9		)	(0.8		)
Interest expense	2.9			3.7			4.2
Other expense, net	2.6			7.0			3.3
Loss from continuing operations before income taxes	$	(341.1	)	$	(42.9	)	$	(76.4	)

We have not provided specific asset information by segment, as it is not regularly provided to our chief operating decision maker for review at a segment specific level. Corporate and unallocated amounts above include non-cash goodwill impairment charges of $23.3 million, $1.6 million and $23.5 million for the years ended December 31, 2012, 2011 and 2010, respectively, non-cash intangible asset impairment charges for $260.5 million for the year ended December 31, 2012, restructuring and other costs of $21.1 million, $21.5 million and $51.1 million for the years ended December 31, 2012, 2011 and 2010, respectively and litigation settlement charges of $2.0 million and $2.6 million for the years ended December 31, 2011 and 2010, respectively.

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:

	Years Ended December 31,
	2012		2011		2010
	(In Millions)
Net Revenue
Traditional storage
Optical products	$	426.8	$	511.9	$	619.3
Magnetic products	286.2		327.4		347.8
Other traditional storage	15.4		47.7		62.8
Total traditional storage	728.4		887.0		1,029.9
Secure and scalable storage	210.1		210.1		207.5
Audio and video information	161.1		193.3		223.5
Total	$	1,099.6	$	1,290.4	$	1,460.9

The following table presents net revenue by geographical region based on the country in which the revenue originated:

	Years Ended December 31,
	2012		2011		2010
	(In millions)
Net Revenue
United States	$	447.4	$	519.2	$	633.1
International	652.2		771.2		827.8
Total	$	1,099.6	$	1,290.4	$	1,460.9

The United States and Japan each comprise more than 10 percent of our total net revenue. Net revenue from Japan was 19.7 percent, 17.6 percent and 16.0 percent of total net revenue for the years ended December 31, 2012, 2011 and 2010, respectively.

The following table presents long-lived assets by geographical region:

	As of December 31,
	2012		2011		2010
	(In millions)
Long-Lived Assets
United States	$	55.1	$	51.6	$	62.4
International	3.8		3.8		4.5
Total	$	58.9	$	55.4	$	66.9