Segment Information

12 Months Ended

Sep. 01, 2016

Segment Reporting [Abstract]

Segment Information

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 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. The unallocated amount of operating expense for 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	2016			2015			2014
Net sales
CNBU	$	4,529		$	6,725		$	7,333
SBU	3,262			3,687			3,480
MBU	2,569			3,692			3,627
EBU	1,939			1,999			1,774
All Other	100			89			144
	$	12,399		$	16,192		$	16,358
Operating income (loss)
CNBU	$	(134	)	$	1,481		$	1,957
SBU	(205		)	(89		)	255
MBU	39			1,126			683
EBU	433			435			331
All Other	35			45			94
Unallocated	—			—			(233		)
	$	168		$	2,998		$	3,087

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

For the year ended	2016		2015		2014
CNBU	$	1,147	$	1,058	$	878
SBU	848		765		512
MBU	584		513		475
EBU	381		322		226
All Other	20		9		12
	$	2,980	$	2,667	$	2,103