Segment and Other Information

6 Months Ended

Mar. 04, 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.

	Quarter ended				Six months ended
	March 4, 2021		February 27, 2020		March 4, 2021		February 27, 2020
Revenue
CNBU	$	2,636	$	1,967	$	5,182	$	3,946
MBU	1,811		1,258		3,312		2,715
SBU	850		870		1,761		1,838
EBU	935		696		1,744		1,430
All Other	4		6		10		12
	$	6,236	$	4,797	$	12,009	$	9,941
Operating income (loss)
CNBU	$	709	$	283	$	1,192	$	684
MBU	464		183		834		478
SBU	(59)		(2)		(55)		(219)
EBU	141		79		257		192
All Other	2		(1)		2		1
	1,257		542		2,230		1,136
Unallocated
Inventory accounting policy change to FIFO	(133)		—		(133)		—
Change in inventory cost absorption	(160)		—		(160)		—
3D XPoint inventory write-down	(49)		—		(49)		—
Stock-based compensation	(112)		(85)		(204)		(157)
Patent license charges	(128)		—		(128)		—
Restructure and asset impairments	(5)		(10)		(13)		(6)
Other	(7)		(7)		(14)		(15)
	(594)		(102)		(701)		(178)
Operating income	$	663	$	440	$	1,529	$	958

Certain Concentrations

Revenue from WPG Holdings Limited was 12% of total revenue for the first six months of 2021.