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Revenue and Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Revenue and Segment Information
Note 3: Revenue and Segment Information

Revenue recognized for product sales amounted to $7,988.4 million, $8,166.2 million and $6,578.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Revenue recognized for manufacturing services amounted to $248.1 million, $139.9 million and $141.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. Revenue recognized for product development agreements amounted to $16.5 million, $20.1 million and $19.9 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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 firmly committed amounts ("Long-term Supply Agreements" or "LTSA's") for which the remaining performance obligations as of December 31, 2023 were approximately $16.5 billion (excluding the remaining performance obligations for contracts having a duration of one year or less). The Company expects to recognize approximately 29% of this amount as revenue during the next twelve months upon shipment of products under these contracts. Total revenue estimates are based on negotiated contract prices and demand quantities, and could be influenced by risks and uncertainties, including manufacturing or supply chain constraints, modifications to customer agreements, and regulatory changes, among other factors. Accordingly, the actual revenue recognized for the remaining performance obligation in future periods may significantly fluctuate from these estimates.

A portion of our LTSA’s include non-cancellable capacity payments which secure production availability for our customers' orders or represent deposits, which prepay a portion of a given customer’s product obligation. During the years ended December 31, 2023 and 2022, the Company recognized capacity payments of $206.3 million and $162.9 million, respectively, which were recorded within contract liabilities. As of December 31, 2023 and 2022, $23.8 million and $8.4 million, respectively, of the capacity payments were recorded in accounts receivable. Capacity payments totaled $304.2 million and $190.4 million as of December 31, 2023 and 2022, respectively, of which $87.6 million and $60.5 million, respectively, were recorded as current liabilities and $216.6 million and $129.9 million, respectively, were recorded as other long-term liabilities. Contract assets were $95.1 million and $2.3 million as of December 31, 2023 and 2022, respectively, of which $83.1 million and $2.3 million, respectively, were recorded as other current assets and $12.0 million and $0.0 million, respectively, were recorded as other assets. During the years ended December 31, 2023 and 2022, $88.2 million and $23.8 million, respectively, was recognized as revenue for satisfying the associated performance obligations.

As of December 31, 2023, the Company was organized into three operating and reportable segments consisting of PSG, ASG and ISG. The operating costs of manufacturing facilities which service all business units are reflected in each segment's cost of revenue on the basis of product costs. Because operating segments are generally defined by the products they design and sell, they do not sell to each other. The Company does not allocate income taxes or interest expense to its operating segments as the operating segments are principally evaluated on gross profit. Additionally, restructuring, asset impairments and other charges, net and certain other operating expenses, which include corporate research and development costs and miscellaneous nonrecurring expenses are not allocated to segments. In addition to the operating and reportable segments, the Company also operates global operations, sales and marketing, information systems and finance and administration groups. A portion of the expenses for each of these groups are allocated to the segments based on specific and general criteria.

Revenue and gross profit for the Company’s operating and reportable segments are as follows (in millions):
PSGASGISGTotal
For year ended December 31, 2023:
Revenue from external customers$4,449.0 $2,488.5 $1,315.5 $8,253.0 
Segment gross profit2,111.3 1,131.9 640.3 3,883.5 
For year ended December 31, 2022:
Revenue from external customers$4,208.2 $2,841.3 $1,276.7 $8,326.2 
Segment gross profit1,994.3 1,474.5 608.4 4,077.2 
For year ended December 31, 2021:
Revenue from external customers$3,439.1 $2,399.9 $900.8 $6,739.8 
Segment gross profit1,318.3 1,055.6 340.4 2,714.3 

There were no customers whose revenue exceeded 10% or more of the Company's total revenue for the year ended December 31, 2023. The Company had one customer, a distributor, whose revenue accounted for approximately 12% and 13%
of the total revenue for the years ended December 31, 2022 and 2021, 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):
Year Ended December 31, 2023
PSGASGISGTotal
Geographic Location
Hong Kong$1,334.8 $581.1 $252.7 $2,168.6 
Singapore1,202.3 533.2 203.3 1,938.8 
United Kingdom904.0 513.5 335.9 1,753.4 
United States712.4 534.0 327.3 1,573.7 
Other295.5 326.7 196.3 818.5 
Total$4,449.0 $2,488.5 $1,315.5 $8,253.0 
Sales Channel
Distributors$2,643.0 $1,089.8 $576.3 $4,309.1 
Direct Customers1,806.0 1,398.7 739.2 3,943.9 
Total$4,449.0 $2,488.5 $1,315.5 $8,253.0 

Year Ended December 31, 2022
PSGASGISGTotal
Geographic Location
Hong Kong$1,314.9 $742.7 $258.2 $2,315.8 
Singapore1,114.9 819.0 200.0 2,133.9 
United Kingdom762.0 454.8 275.5 1,492.3 
United States708.0 421.3 335.4 1,464.7 
Other308.4 403.5 207.6 919.5 
Total$4,208.2 $2,841.3 $1,276.7 $8,326.2 
Sales Channel
Distributors$2,702.6 $1,413.3 $691.4 $4,807.3 
Direct Customers1,505.6 1,428.0 585.3 3,518.9 
Total$4,208.2 $2,841.3 $1,276.7 $8,326.2 
Year Ended December 31, 2021
PSGASGISGTotal
Geographic Location
Singapore$1,097.7 $860.4 $139.7 $2,097.8 
Hong Kong1,055.6 572.4 200.6 1,828.6 
United Kingdom606.4 343.7 173.5 1,123.6 
United States432.0 304.7 194.9 931.6 
Other247.4 318.7 192.1 758.2 
Total$3,439.1 $2,399.9 $900.8 $6,739.8 
Sales Channel
Distributors$2,443.0 $1,335.5 $553.5 $4,332.0 
Direct Customers996.1 1,064.4 347.3 2,407.8 
Total$3,439.1 $2,399.9 $900.8 $6,739.8 

The Company operates in various geographic locations. Sales to external customers have little correlation to where products are manufactured or the location of the end-customers. The Company believes it is, therefore, not meaningful to present operating profit by geographical location.

The Company's revenue disaggregated into end-markets and product technologies is as follows (in millions):
Year-Ended December 31,
202320222021
End-Markets
Automotive$4,319.9 $3,360.8 $2,288.9 
Industrial2,278.4 2,290.5 1,802.3 
Other*1,654.7 2,674.9 2,648.6 
Total$8,253.0 $8,326.2 $6,739.8 
* Other includes the end-markets of computing, consumer, networking, communications, etc.
Product Technologies
Intelligent Power$4,214.8 $3,997.3 $3,073.6 
Intelligent Sensing1,606.8 1,573.7 1,114.1 
Other2,431.4 2,755.2 2,552.1 
Total$8,253.0 $8,326.2 $6,739.8 
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 used in manufacturing are generally shared across and are not specifically ascribed to operating and reportable segments. In situations where the carrying amounts assigned to an asset group needs to be evaluated for recoverability, judgment is used to determine the carrying amounts of the asset group based on the facts and circumstances.

Property, plant and equipment, net by geographic location, are summarized as follows (in millions):
As of December 31,
20232022
United States$1,456.5 $1,329.2 
South Korea1,360.8 871.0 
Philippines252.9 296.8 
Czech Republic559.7 279.3 
China252.2 215.3 
Malaysia199.3 190.2 
Vietnam164.3 86.8 
Other155.8 182.1 
Total$4,401.5 $3,450.7 

The following table illustrates the product technologies under each of the Company's reportable segments based on the Company's operating strategy. Because many products are sold into different end-markets, the total revenue reported for a segment is not indicative of actual sales in the end-market associated with that segment, but rather is the sum of the revenue from the product lines assigned to that segment. These segments represent the Company's view of the business and as such are used to evaluate progress of major initiatives and allocation of resources.
PSGASGISG
Analog productsAnalog productsActuator Drivers
SiC productsASIC productsCMOS Image Sensors
Discrete productsECL productsImage Signal Processors
MOSFET productsFoundry products / servicesSingle Photon Detectors
Power Module productsGate Driver products
Isolation productsLSI products
Memory productsStandard Logic products
Gate Driver products
Standard Logic products