Segment Information

Segment information reported herein is consistent with how it is reviewed and evaluated by our chief operating decision maker. We have the following four business units, which are our reportable segments:

Compute and Networking Business Unit ("CNBU"): Includes memory products sold into compute, networking, graphics, and cloud server markets.

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

Mobile Business Unit ("MBU"): Includes memory products sold into smartphone, tablet, and other mobile-device markets.

Embedded Business Unit ("EBU"): Includes memory products sold into automotive, industrial, connected home, and consumer electronics markets.

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. In 2017, we revised the measure of segment profitability reviewed by our chief operating decision maker and, as a result, certain items are no longer allocated to our business units. Comparative periods have been revised to reflect these changes. Items not allocated are identified in the table below.

We do not identify or report internally our assets (other than goodwill) 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. As of August 31, 2017, CNBU, MBU, SBU, and EBU had goodwill of $832 million, $198 million, $101 million, and $97 million, respectively and as of September 1, 2016, SBU and CNBU had goodwill of $101 million and $3 million, respectively.



For the year ended	2017			2016			2015
Net sales
CNBU	$	8,624		$	4,529		$	6,725
SBU	4,514			3,262			3,687
MBU	4,424			2,569			3,692
EBU	2,695			1,939			1,999
All Other	65			100			89
	$	20,322		$	12,399		$	16,192

Operating income (loss)
CNBU	$	3,755		$	(25	)	$	1,549
SBU	552			(123		)	(39		)
MBU	927			97			1,166
EBU	975			473			459
All Other	23			28			44
	$	6,232		$	450		$	3,179

Unallocated
Stock-based compensation	$	(215	)	$	(191	)	$	(167	)
Restructure and asset impairments	(18		)	(67		)	(3		)
Flow-through of Inotera inventory step up	(107		)	—			—
Other	(24		)	(24		)	(11		)
	$	(364	)	$	(282	)	$	(181	)

Operating income	$	5,868		$	168		$	2,998

Depreciation and amortization expense included in operating income was as follows:



For the year ended	2017		2016		2015
CNBU	$	1,344	$	1,141	$	1,053
SBU	1,083		844		761
MBU	926		580		512
EBU	484		379		321
All Other	13		20		9
Unallocated	11		16		11
	$	3,861	$	2,980	$	2,667