Segment Information

12 Months Ended

Sep. 03, 2020

Segment Reporting [Abstract]

Segment 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 and sales of certain 3D XPoint products.

Mobile Business Unit (“MBU”): Includes memory 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, other discrete storage products sold in component and wafer form to the removable storage market, and sales of certain 3D XPoint products.

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 3, 2020 and August 29, 2019, CNBU, MBU, SBU, and EBU had goodwill of $832 million, $198 million, $101 million, and $97 million, respectively.

For the year ended	2020		2019		2018
Revenue
CNBU	$	9,184	$	9,968	$	15,252
MBU	5,702		6,403		6,579
SBU	3,765		3,826		5,022
EBU	2,759		3,137		3,479
All Other	25		72		59
	$	21,435	$	23,406	$	30,391
Operating income (loss)
CNBU	$	2,010	$	4,645	$	9,773
MBU	1,074		2,606		3,033
SBU	36		(386)		964
EBU	301		923		1,473
All Other	(2)		13		—
	3,419		7,801		15,243
Unallocated
Stock-based compensation	(328)		(243)		(198)
Restructure and asset impairments	(60)		32		(28)
Employee severance	—		(116)		—
Start-up and preproduction costs	—		(58)		—
Other	(28)		(40)		(23)
	(416)		(425)		(249)
Operating income	$	3,003	$	7,376	$	14,994

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

For the year ended	2020		2019		2018
CNBU	$	2,318	$	1,833	$	1,755
MBU	1,436		1,235		1,077
SBU	1,115		1,555		1,295
EBU	741		748		603
All Other	12		27		18
Unallocated	28		26		11
	$	5,650	$	5,424	$	4,759