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Revenue and Segment Information
 3 Months Ended
Apr. 01, 2022
Segment Reporting [Abstract]  
Revenue and Segment Information
Note 2: Revenue and Segment Information

The Company is organized into three operating and reportable segments consisting of PSG, ASG and ISG. These segments represent the Company's view of the business, and its gross profit is used to evaluate the performance of the Company's segments, the progress of major initiatives and the allocation of resources.

A significant portion of the Company’s orders are firm commitments that are non-cancellable, including certain orders or contracts with a duration of less than one year. Certain of the Company's customer contracts are multi-year agreements that include committed amounts ("Long-term Supply Agreements" or "LTSA's").

The estimated remaining performance obligations as of March 31, 2023, are approximately $17.6 billion (excluding the remaining performance obligations for contracts having an original duration of one year or less). This amount is subject to contractual increases based on negotiated contract prices and volumes, defined product mix flexibility, and the timing of new part introductions, among other contractual provisions. The Company expects to recognize approximately 33% of the remaining purchase obligation as revenue during the next twelve months upon shipment of products under these contracts. Total revenue estimates could be influenced by risks and uncertainties including manufacturing or supply chain constraints, modifications to customer agreements, and regulatory changes, among other factors. Accordingly, our actual revenue recognized for the remaining performance obligation in future periods may fluctuate from estimates.

Certain of the Company’s LTSA’s include non-cancellable capacity payments from the customer, which are generally due within 30 days of the agreement. These payments reserve production availability or are prepayments to secure production availability and are not recognized as revenue until the performance obligations are satisfied. For the periods ending March 31, 2023, and April 1, 2022, the Company recognized revenue of $14.8 million and $4.5 million, respectively, for the portion of performance obligations fulfilled during those periods.

As of March 31, 2023, and December 31, 2022, the remaining capacity payments were $225.5 million and $190.4 million, respectively, of which $69.0 million and $60.5 million were recorded as current liabilities, with the remainder recorded as other long-term liabilities.

Revenue and gross profit for the Company’s operating and reportable segments are as follows (in millions):
PSGASGISGTotal
For the quarter ended March 31, 2023:
Revenue from external customers$1,012.8 $592.8 $354.1 $1,959.7 
Gross profit$480.3 $260.1 $177.1 $917.5 
For the quarter ended April 1, 2022:
Revenue from external customers$986.7 $689.3 $269.0 $1,945.0 
Gross profit$474.7 $366.7 $119.9 $961.3 

The Company had one customer, a distributor, whose revenue accounted for approximately 10.1% and 12.4% of the Company's total revenue for the quarters ended March 31, 2023 and April 1, 2022, respectively.
Revenue for the Company's operating and reportable segments disaggregated into geographic locations based on sales billed from the respective country and sales channels are as follows (in millions):

Quarter Ended March 31, 2023
PSGASGISGTotal
Geographic Location
Hong Kong$286.9 $139.7 $63.8 490.4 
Singapore276.4 116.1 58.2 450.7 
United Kingdom204.1 128.1 81.1 413.3 
United States166.3 121.3 101.5 389.1 
Other79.1 87.6 49.5 216.2 
Total$1,012.8 $592.8 $354.1 $1,959.7 
Sales Channel
Distributors$629.3 $222.8 $187.1 $1,039.2 
Direct Customers383.5 370.0 167.0 920.5 
Total$1,012.8 $592.8 $354.1 $1,959.7 

Quarter Ended April 1, 2022
PSGASGISGTotal
Geographic Location
Singapore$280.5 $233.8 $41.4 $555.7 
Hong Kong303.1 173.9 52.6 529.6 
United Kingdom186.9 106.6 52.0 345.5 
United States144.9 92.3 74.5 311.7 
Other71.3 82.7 48.5 202.5 
Total$986.7 $689.3 $269.0 $1,945.0 
Sales Channel
Distributors$633.9 $356.9 $150.6 $1,141.4 
Direct Customers352.8 332.4 118.4 803.6 
Total$986.7 $689.3 $269.0 $1,945.0 

The Company operates in various geographic locations. Sales to external customers have little correlation with the location of the Company's manufacturing or the location of the end-customers. It is, therefore, not meaningful to present operating profit by geographical location. The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. The Company’s consolidated assets are not specifically ascribed to its individual reportable segments. Instead, assets used in operations are generally shared across the Company’s operating and reportable segments.
Property, plant and equipment, net by geographic location, is summarized as follows (in millions):
As of
March 31, 2023December 31, 2022
United States$1,360.8 $1,329.2 
South Korea990.9 871.0 
Czech Republic335.3 279.3 
Philippines287.1 296.8 
China227.4 215.3 
Malaysia199.0 190.2 
Japan128.1 133.2 
Other164.3 135.7 
Total$3,692.9 $3,450.7