Segment Information

12 Months Ended

Aug. 28, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

In the third quarter of 2014, we reorganized our business units. All prior period amounts reflect this reorganization. Factors used to identify our segments include, among others, markets, customers and products.  Segment information reported herein is consistent with how it is reviewed and evaluated by our chief operating decision makers. We have the following four business units, which are our reportable segments:

Compute and Networking Business Unit ("CNBU"): Includes DRAM and NOR Flash products sold to the compute, networking, graphics and cloud server markets.

Mobile Business Unit ("MBU"): Includes DRAM, NAND Flash and NOR Flash products sold to the smartphone, feature phone and tablet mobile-device market.

Storage Business Unit ("SBU"): Includes NAND Flash components and SSDs sold into enterprise and client storage, cloud and removable storage markets. SBU also includes NAND Flash products sold to Intel through our IMFT joint venture.

Embedded Business Unit ("EBU"): Includes DRAM, NAND Flash and NOR Flash products sold into automotive and industrial applications, as well as the connected home and consumer electronics markets.

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 expenses (income) are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. The unallocated amount in 2014 related to the Rambus settlement.

We do not identify or report internally our assets 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.  There are no differences in the accounting policies for segment reporting and our consolidated results of operations.

For the year ended	2014			2013			2012
Net sales:
CNBU	$	7,333		$	3,462		$	2,667
MBU	3,627			1,214			1,176
SBU	3,480			2,824			2,842
EBU	1,774			1,275			1,097
All Other	144			298			452
	$	16,358		$	9,073		$	8,234
Operating income (loss):
CNBU	$	1,957		$	160		$	(458	)
MBU	683			(265		)	(371		)
SBU	255			173			199
EBU	331			227			129
All Other	94			(59		)	(111		)
Unallocated	(233		)	—			—
	$	3,087		$	236		$	(612	)

Depreciation and amortization expense was as follows:

For the year ended	2014		2013		2012
CNBU	$	878	$	687	$	755
MBU	475		293		372
SBU	512		551		649
EBU	226		215		228
All Other	11		67		140
Depreciation and amortization expense included in operating income (loss)	2,102		1,813		2,144
Other amortization	168		113		78
Total depreciation and amortization expense	$	2,270	$	1,926	$	2,222