Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

We manage our business through two reporting segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our reporting segments are generally aligned with our key consumer and commercial 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 backup and archiving as well as primary storage; 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.

The operating results of our XtremeMac and Memorex consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations and are not included in segment results for all periods presented. See Note 4 - Acquisitions and Divestitures for further information on these divestitures.

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

	Three Months Ended
	March 31,
(In millions)	2014		2013
Net revenue
Consumer Storage and Accessories
Consumer storage media	$	89.5	$	114.2
Audio and accessories	10.5		7.6
Total Consumer Storage and Accessories	100.0		121.8
Tiered Storage and Security Solutions
Commercial storage media	51.4		66.9
Storage and security solutions	27.5		35.7
Total Tiered Storage and Security Solutions	78.9		102.6
Total net revenue	$	178.9	$	224.4

	Three Months Ended
	March 31,
(In millions)	2014			2013
Operating income (loss) from continuing operations
Consumer Storage and Accessories	$	4.1		$	5.9
Tiered Storage and Security Solutions	(8.8		)	(3.0		)
Total segment operating income	(4.7		)	2.9
Corporate and unallocated	(11.4		)	(17.6		)
Total operating loss	(16.1		)	(14.7		)
Interest income	(0.1		)	—
Interest expense	0.6			0.7
Other, net expense (income)	0.2			(0.2		)
Loss from continuing operations before income taxes	$	(16.8	)	$	(15.2	)