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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Commercial storage media products consist mainly of magnetic data storage tape media and RDX®media. Storage and
security solutions includes storage hardware products, services and software for backup and archiving as well as primary
storage; encrypted and biometric flash drives and hard disk drives; secure portable desktop solutions; and software solutions,
including products which contain various security features such as password authentication, encryption and remote
manageability.
We evaluate segment performance based on revenue and operating income (loss). The operating income (loss)
reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the
business segment results, they are included in reported consolidated results. Corporate and unallocated amounts include
depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, intangible asset
abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring
programs and restructuring and other expenses which are not allocated to the segments. The methodology to determine
corporate and unallocated amounts is applied consistently among all years.
During the first quarter of 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics
businesses. The operating results for these businesses are presented in our Consolidated Statements of Operations as
discontinued operations and are not included in segment results for any periods presented. The consumer storage business
under the Memorex and TDK Life on Record brands and the consumer electronics business under the TDK Life on Record
brand are being retained. See Note 4 — Acquisitions and Divestitures for further information.
Net revenue and operating income (loss) by segment were as follows:
Years Ended December 31,
2013 2012 2011
(In millions)
Net Revenue
Consumer Storage and Accessories
Consumer storage media ..................................... $435.7 $ 594.3 $ 740.2
Audio and accessories ....................................... 42.6 41.0 35.0
Total Consumer Storage and Accessories ....................... 478.3 635.3 775.2
Tiered Storage and Security Solutions
Commercial storage media .................................... 251.0 311.6 378.8
Storage and security solutions ................................. 131.5 59.8 12.6
Total Tiered Storage and Security Solutions ..................... 382.5 371.4 391.4
Total Net Revenue ............................................ $860.8 $1,006.7 $1,166.6
Years Ended December 31,
2013 2012 2011
(In millions)
Operating Income (Loss)
Consumer Storage and Accessories .................................. $52.3 $ 61.5 $ 57.1
Tiered Storage and Security Solutions ................................. (16.1) (26.7) 9.2
Total segment operating income ................................. 36.2 34.8 66.3
Corporate and unallocated ......................................... (56.3) (353.2) (86.7)
Total operating loss .......................................... (20.1) (318.4) (20.4)
Interest income .................................................. (0.2) (0.5) (0.9)
Interest expense ................................................. 2.5 2.9 3.7
Other expense, net ............................................... 0.6 2.6 7.0
Loss from continuing operations before income taxes ................. $(23.0) $(323.4) $(30.2)
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