Segment and Other Information

12 Months Ended

Sep. 01, 2022

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.

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

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 1, 2022 and September 2, 2021, CNBU, MBU, SBU, and EBU had goodwill of $832 million, $198 million, $101 million, and $97 million, respectively.

For the year ended	2022		2021		2020
Revenue
CNBU	$	13,693	$	12,280	$	9,184
MBU	7,260		7,203		5,702
EBU	5,235		4,209		2,759
SBU	4,553		3,973		3,765
All Other	17		40		25
	$	30,758	$	27,705	$	21,435
Operating income (loss)
CNBU	$	5,844	$	4,295	$	2,010
MBU	2,160		2,173		1,074
EBU	1,752		1,006		301
SBU	513		173		36
All Other	12		20		(2)
	10,281		7,667		3,419
Unallocated
Stock-based compensation	(501)		(395)		(328)
Inventory accounting policy change to FIFO	—		(133)		—
Change in inventory cost absorption	—		(160)		—
3D XPoint inventory write-down	—		(49)		—
Restructure and asset impairments	(48)		(488)		(60)
Patent license charges	—		(128)		—
Other	(30)		(31)		(28)
	(579)		(1,384)		(416)
Operating income	$	9,702	$	6,283	$	3,003

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

For the year ended	2022		2021		2020
CNBU	$	2,766	$	2,497	$	2,318
MBU	1,725		1,553		1,436
EBU	1,280		1,028		741
SBU	1,323		1,101		1,115
All Other	2		8		12
Unallocated	20		27		28
	$	7,116	$	6,214	$	5,650