Crucial 2014 Annual Report Download - page 33

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31
Results of Operations
Consolidated Results
For the year ended 2014 2013 2012
Net sales $16,358 100 % $ 9,073 100 % $ 8,234 100 %
Cost of goods sold 10,921 67 % 7,226 80 % 7,266 88 %
Gross margin 5,437 33 % 1,847 20 % 968 12 %
SG&A 707 4 % 562 6 % 620 8 %
R&D 1,371 8 % 931 10 % 918 11 %
Restructure and asset impairments 40 — % 126 1 % 10 — %
Other operating (income) expense, net 232 1 % (8) — % 32 — %
Operating income (loss) 3,087 19 % 236 3 % (612) (7)%
Gain on MMJ Acquisition (33) — % 1,484 16 % — — %
Interest income (expense), net (329) (2)% (217) (2)% (171) (2)%
Other non-operating income (expense), net 8 — % (218) (2)% 29 — %
Income tax (provision) benefit (128) (1)% (8) — % 17 — %
Equity in net income (loss) of equity method investees 474 3 % (83) (1)% (294) (4)%
Net income attributable to noncontrolling interests (34) — % (4) — % (1) — %
Net income (loss) attributable to Micron $ 3,045 19 % $ 1,190 13 % $ (1,032) (13)%
Business Segments
We have the following four business units, which are our reportable segments:
Compute and Networking Business Unit ("CNBU"): Includes DRAM and NOR Flash products sold to the compute,
networking, graphics and cloud server markets.
Mobile Business Unit ("MBU"): Includes DRAM, NAND Flash and NOR Flash products sold to the smartphone, feature
phone and tablet mobile-device market.
Storage Business Unit ("SBU"): Includes NAND Flash components and SSDs sold into enterprise and client storage, cloud
and removable storage markets. SBU also includes NAND Flash products sold to Intel through our IMFT joint venture.
Embedded Business Unit ("EBU"): Includes DRAM, NAND Flash and NOR Flash products sold into automotive and
industrial applications, as well as the connected home and consumer electronics markets.
Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. In the third
quarter of 2014, we reorganized our business units. All prior period amounts reflect this reorganization.
Net Sales
For the year ended 2014 2013 2012
CNBU $ 7,333 45% $ 3,462 38% $ 2,667 32%
MBU 3,627 22% 1,214 13% 1,176 14%
SBU 3,480 21% 2,824 31% 2,842 35%
EBU 1,774 11% 1,275 14% 1,097 13%
All Other 144 1% 298 4% 452 6%
$16,358 100% $ 9,073 100% $ 8,234 100%