Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

As of January 1, 2013, we revised our segment reporting to reflect changes in how we manage our business, review operating performance and allocate resources. We now manage our business through two reporting segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our new reporting segments are aligned with our key commercial and consumer channels.

We have two major product categories under our CSA segment: Consumer storage media and Audio and accessories. Consumer storage media products include primarily optical products such as DVDs, CDs and Blu-ray disc recordable media as well as flash media. Audio and accessories include primarily headphones, audio electronics and accessories. We have two major product categories under our TSS segment: Commercial storage media and Storage and security solutions. Commercial storage media products consist mainly of magnetic data storage tape media and RDX media.Storage and security solutions includes storage hardware products, services and software for primary storage as well as backup and archiving; encrypted and biometric flash drives and 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.

We evaluate segment performance based on revenue and operating income (loss). 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 depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, intangible asset abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments.

On February 13, 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses. The operating results for these businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations and are not included in segment results for any periods presented. The consumer storage business under the Memorex and TDK Life on Record brands will be retained. See Note 4 - Acquisitions and Divestitures for further information.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2013		2012		2013		2012
Net Revenue
Consumer Storage and Accessories
Consumer storage media	$	107.3	$	151.1	$	221.5	$	303.8
Audio and accessories	9.6		9.4		17.2		18.8
Total Consumer Storage and Accessories	116.9		160.5		238.7		322.6
Tiered Storage and Security Solutions
Commercial storage media	61.8		75.1		128.7		161.3
Storage and security solutions	33.0		13.6		68.7		28.6
Total Tiered Storage and Security Solutions	94.8		88.7		197.4		189.9
Total Net Revenue	$	211.7	$	249.2	$	436.1	$	512.5

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2013			2012			2013			2012
Operating Income (Loss)
Consumer Storage and Accessories	$	20.8		$	16.0		$	26.7		$	32.6
Tiered Storage and Security Solutions	(2.9		)	(6.0		)	(5.9		)	$	(12.5	)
Total segment operating income	17.9			10.0			20.8			20.1
Corporate and unallocated	(17.9		)	(17.5		)	(35.5		)	(33.2		)
Total operating loss	—			(7.5		)	(14.7		)	(13.1		)
Interest income	—			(0.2		)	—			(0.3		)
Interest expense	0.6			0.9			1.3			1.8
Other, net	0.1			1.1			(0.1		)	2.6
Loss from continuing operations before income taxes	$	(0.7	)	$	(9.3	)	$	(15.9	)	$	(17.2	)