v3.25.2
Segment and Other Information
 12 Months Ended
Aug. 28, 2025
Segment Reporting [Abstract]  
Segment and Other Information Segment and Other Information
We initiated a strategic reorganization of our business units to a market segment-focused business unit structure, with AI growth opportunities in every business unit. We completed the reorganization of our operations and organizational structure and began to manage operations under our new segment structure effective in the fourth quarter of 2025. As high-performance memory and storage become increasingly vital to drive the growth of AI, this business unit reorganization allows us to stay at the forefront of innovation in each market segment through deeper customer engagement and to address the dynamic needs of the industry.

All prior-period segment amounts have been retrospectively adjusted to reflect the way our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), assesses the performance of our segments based on segment revenue, cost of goods sold, operating expenses, and operating income (loss). The segment information reported herein is regularly provided to and reviewed and evaluated by our CODM to budget, forecast, and decide how to allocate resources for capital investments, human capital, and other strategic investments across our segments. There are no changes to our Consolidated Financial Statements for any prior periods.

We have the following four business units, which are our reportable segments:

•Cloud Memory Business Unit (“CMBU”): Focused on memory solutions for large hyperscale cloud customers, and HBM for all data center customers.
•Core Data Center Business Unit (“CDBU”): Focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers.
•Mobile and Client Business Unit (“MCBU”): Focused on memory and storage solutions for the mobile and client segments.
•Automotive and Embedded Business Unit (“AEBU”): Focused on memory and storage solutions for the automotive, industrial, and consumer segments.

Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. 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. Certain income and expenses are not allocated to segments because our CODM does not consider these amounts in the assessment of the performance of our segments. The unallocated amounts primarily include stock-based compensation, the impact of inventory NRV write-downs, gains and losses from settlements, restructure and asset impairment, and goodwill impairment.
For the year ended 2025
CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$13,524 $7,229 $11,859 $4,753 $13 $— $37,378 
Cost of goods sold5,867 3,995 8,650 3,566 14 413 22,505 
Gross margin7,657 3,234 3,209 1,187 (1)(413)14,873 
Research and development1,315 864 836 435 — 348 3,798 
Selling, general, and administrative213 188 390 195 — 219 1,205 
Restructure and asset impairment
— — — — — 39 39 
Other operating (income) expense, net— 2 2 — — 57 61 
Operating income (loss)$6,129 $2,180 $1,981 $557 $(1)$(1,076)$9,770 

For the year ended 2024
CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$3,792 $4,984 $11,667 $4,631 $37 $— $25,111 
Cost of goods sold2,677 3,638 10,222 3,598 20 (657)19,498 
Gross margin1,115 1,346 1,445 1,033 17 657 5,613 
Research and development769 960 994 425 — 282 3,430 
Selling, general, and administrative107 139 485 186 (1)213 1,129 
Restructure and asset impairment
— — — — — 1 1 
Other operating (income) expense, net(5)(8)(33)(10)— (195)(251)
Operating income (loss)$244 $255 $(1)$432 $18 $356 $1,304 

For the year ended 2023
CMBUCDBU
MCBU
AEBUAll Other
Unallocated
Total
Revenue$1,872 $2,124 $7,394 $4,139 $11 $— $15,540 
Cost of goods sold1,801 1,967 9,072 2,905 4 1,207 16,956 
Gross margin71 157 (1,678)1,234 7 (1,207)(1,416)
Research and development755 622 1,122 389 — 226 3,114 
Selling, general, and administrative90 104 414 176 (1)137 920 
Restructure and asset impairment
— — — — — 171 171 
Other operating (income) expense, net(6)(6)(25)(11)— 172 124 
Operating income (loss)$(768)$(563)$(3,189)$680 $8 $(1,913)$(5,745)
The table below presents the unallocated amounts:
For the year ended
202520242023
Unallocated
Cost of goods sold:
Stock-based compensation$409 $312 $201 
Provision to write down inventories to net realizable value
— — 1,831 
Lower costs from sale of inventory written down in prior periods
— (987)(844)
Other
4 18 19 
413 (657)1,207 
Research and development:
Stock-based compensation347 296 226 
Other
1 (14)— 
348 282 226 
Selling, general, and administrative:
Stock-based compensation219213137
Restructure and asset impairment:39 1 171 
Other operating (income) expense, net:
Patent license charges57 — — 
Goodwill impairment
— — 101 
Litigation settlement— — 68 
Patent cross-license agreement gain
— (200)— 
Other— 5 3 
57 (195)172 
Total unallocated amounts
$1,076 $(356)$1,913 

Depreciation and amortization expense included in operating income (loss) was as follows:
For the year ended
202520242023
CMBU$2,260 $1,112 $909 
CDBU1,530 1,434 1,020 
MCBU3,177 3,762 4,319 
AEBU1,375 1,447 1,486 
All Other5 7 3 
Unallocated5 18 19 
$8,352 $7,780 $7,756 

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 a result of reorganizing our segments in the fourth quarter of 2025, we reallocated goodwill among our reporting units on a relative fair value basis. We performed a quantitative goodwill impairment assessment for each of our reporting units immediately before and after our business unit reorganization. We concluded based on both our pre- and post-reorganization impairment assessments that goodwill was not impaired. As of August 28, 2025, CMBU, CDBU, MCBU, and AEBU had goodwill of $654 million, $109 million, $284 million, and $103 million, respectively.
We performed a qualitative assessment for goodwill impairment in 2024 and did not identify any impairment indicators for our reporting units. Due to global and macroeconomic challenges, as well as lower expected demand resulting from customer actions to reduce elevated inventory levels, in 2023, we performed a quantitative assessment for goodwill impairment for each of our reporting units. We evaluated the fair value of our reporting units based on an income approach, using a discounted cash flow methodology. We recognized a $101 million charge in 2023, included in other operating income (loss) to impair all of the goodwill assigned to our former Storage Business Unit based on our best estimates of projected future cash flows at that time.