Segment and Other Information

12 Months Ended

Sep. 02, 2021

Segment Reporting [Abstract]

Segment and Other Information

Segment and Other 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 client, cloud server, enterprise, graphics, and networking markets.

Mobile Business Unit (“MBU”): Includes memory and storage products sold into smartphone and other mobile-device markets.

Storage Business Unit (“SBU”): Includes SSDs and component-level solutions sold into enterprise and cloud, client, and consumer storage markets, and other discrete storage products sold in component and wafer form.

Embedded Business Unit (“EBU”): Includes memory and storage products sold into automotive, industrial, and consumer markets.

Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income and expenses are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. 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 September 2, 2021 and September 3, 2020, CNBU, MBU, SBU, and EBU had goodwill of $832 million, $198 million, $101 million, and $97 million, respectively.

For the year ended	2021		2020		2019
Revenue
CNBU	$	12,280	$	9,184	$	9,968
MBU	7,203		5,702		6,403
SBU	3,973		3,765		3,826
EBU	4,209		2,759		3,137
All Other	40		25		72
	$	27,705	$	21,435	$	23,406
Operating income (loss)
CNBU	$	4,295	$	2,010	$	4,645
MBU	2,173		1,074		2,606
SBU	173		36		(386)
EBU	1,006		301		923
All Other	20		(2)		13
	7,667		3,419		7,801
Unallocated
Stock-based compensation	(395)		(328)		(243)
Inventory accounting policy change to FIFO	(133)		—		—
Change in inventory cost absorption	(160)		—		—
3D XPoint inventory write-down	(49)		—		—
Restructure and asset impairments	(488)		(60)		32
Patent license charges	(128)		—		—
Employee severance	—		—		(116)
Other	(31)		(28)		(98)
	(1,384)		(416)		(425)
Operating income	$	6,283	$	3,003	$	7,376

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

For the year ended	2021		2020		2019
CNBU	$	2,497	$	2,318	$	1,833
MBU	1,101		1,436		1,235
SBU	1,028		1,115		1,555
EBU	1,553		741		748
All Other	8		12		27
Unallocated	27		28		26
	$	6,214	$	5,650	$	5,424