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Segments and Revenue
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments and Revenue
Note 3: Segments and Revenue

Segments
As of December 31, 2024, the Company was organized into three operating and reportable segments consisting of PSG, AMG and ISG. These segments represent management's view of the business for which separate financial information is available and evaluated regularly by the Chief Operating Decision Maker ("CODM"), which is the Company’s Chief Executive Officer. The CODM uses segment gross profit for evaluating product pricing, factory utilization, allocation of capital and the assessment of segment profitability. 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.

PSG formerly included the divisions of Advanced Power Division and Integrated Circuits, Protection and Signal Division ("IPS"). During the first quarter of 2024, management reorganized these divisions to the divisions of Automotive Power Division, Industrial Power Division and Multi-Market Power Division (“MPD”). Further, IPS was split, with portions remaining in MPD and portions moving to the new Integrated Circuits Division within AMG. Management performed a goodwill impairment analysis on the divisions (which were the reporting units) prior to and after the reorganization and did not identify an impairment.

Revenue and gross profit for the Company’s operating and reportable segments were as follows (in millions):
PSG (1)
AMG (1)
ISGTotal
Year ended December 31, 2024:
Revenue from external customers$3,348.2 $2,609.1 $1,125.0 $7,082.3 
Cost of revenue1,963.8 1,302.8 599.6 3,866.2 
Segment gross profit$1,384.4 $1,306.3 $525.4 $3,216.1 
Year ended December 31, 2023:
Revenue from external customers$3,880.4 $3,057.1 $1,315.5 $8,253.0 
Cost of revenue2,058.5 1,635.8 675.2 4,369.5 
Segment gross profit$1,821.9 $1,421.3 $640.3 $3,883.5 
Year ended December 31, 2022:
Revenue from external customers$3,467.1 $3,582.4 $1,276.7 $8,326.2 
Cost of revenue1,866.7 1,714.0 668.3 4,249.0 
Segment gross profit$1,600.4 $1,868.4 $608.4 $4,077.2 
(1)During the first quarter of 2024, the Company reorganized certain reporting units and its segment reporting structure. As a result of the reorganization of divisions within PSG and AMG, the prior-period amounts have been reclassified to conform to current-period presentation.

The Company had one customer, a distributor, whose revenue accounted for approximately 10% and 12% of the total revenue for the years ended December 31, 2024 and 2022, respectively. No customer exceeded 10% of the total revenue for the year ended December 31, 2023. One customer, a distributor, accounted for approximately 13% of the Company's accounts receivable balance as of December 31, 2024, and no single customer had an accounts receivable concentration of 10% or greater as of December 31, 2023.

Revenue for the Company's operating and reportable segments disaggregated into geographic locations based on sales billed from the respective country and sales channels was as follows (in millions):

Year ended December 31, 2024
PSGAMGISGTotal
Geographic Location:
Hong Kong$876.1 $661.6 $241.6 $1,779.3 
Singapore991.0 617.1 125.1 1,733.2 
United Kingdom712.8 502.5 422.5 1,637.8 
United States525.4 596.7 185.4 1,307.5 
Other242.9 231.2 150.4 624.5 
Total$3,348.2 $2,609.1 $1,125.0 $7,082.3 
Sales Channel:
Distributors$2,051.5 $1,338.7 $369.4 $3,759.6 
Direct Customers1,296.7 1,270.4 755.6 3,322.7 
Total$3,348.2 $2,609.1 $1,125.0 $7,082.3 

Year ended December 31, 2023
PSG (1)
AMG (1)
ISGTotal
Geographic Location:
Hong Kong$1,151.7 $764.2 $252.7 $2,168.6 
Singapore1,095.1 640.4 203.3 1,938.8 
United Kingdom769.9 647.6 335.9 1,753.4 
United States604.3 642.1 327.3 1,573.7 
Other259.4 362.8 196.3 818.5 
Total$3,880.4 $3,057.1 $1,315.5 $8,253.0 
Sales Channel:
Distributors$2,238.6 $1,494.2 $576.3 $4,309.1 
Direct Customers1,641.8 1,562.9 739.2 3,943.9 
Total$3,880.4 $3,057.1 $1,315.5 $8,253.0 
Year ended December 31, 2022
PSG (1)
AMG (1)
ISGTotal
Geographic Location:
Hong Kong$1,083.1 $974.5 $258.2 $2,315.8 
Singapore955.7 978.2 200.0 2,133.9 
United Kingdom617.9 598.9 275.5 1,492.3 
United States543.7 585.6 335.4 1,464.7 
Other266.7 445.2 207.6 919.5 
Total$3,467.1 $3,582.4 $1,276.7 $8,326.2 
Sales Channel:
Distributors$2,167.5 $1,948.4 $691.4 $4,807.3 
Direct Customers1,299.6 1,634.0 585.3 3,518.9 
Total$3,467.1 $3,582.4 $1,276.7 $8,326.2 

(1)    During the first quarter of 2024, the Company reorganized certain reporting units and its segment reporting structure. As a result of the reorganization of divisions within PSG and AMG, the prior-period amounts have been reclassified to conform to current-period presentation.

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 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.
PSGAMGISG
SiC productsAnalog productsActuator Drivers
Discrete productsASIC productsCMOS image sensors
MOSFET productsLogic and Isolation productsImage Signal Processors
Power Module productsNon-Volatile Memory productsSingle Photon Detectors
Foundry products/servicesShort-Wavelength Infrared products
Gate Driver productsIndirect Time of Flight sensors
LSI products

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, is summarized below (in millions):
As of December 31,
20242023
South Korea$1,423.8 $1,360.8 
United States1,410.8 1,456.5 
Czech Republic612.3 559.7 
China228.8 252.2 
Philippines208.1 252.9 
Malaysia183.1 199.3 
Vietnam155.3 164.3 
Other139.2 155.8 
Total$4,361.4 $4,401.5 

Revenue
The Company's revenue is derived primarily from product sales, and to a much lesser extent, from manufacturing services and product development agreements. Revenue recognized from product sales as a percentage of total revenue was approximately 99%, 97% and 98% for the years ended December 31, 2024, 2023 and 2022, respectively. Revenue recognized from manufacturing services and product development agreements as a percentage of total revenue was approximately 1%, 3% and 2% for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company's revenue disaggregated into end-markets and product technologies was as follows (in millions):
Year ended December 31,
202420232022
End-Markets:
Automotive$3,900.8 $4,319.9 $3,360.8 
Industrial1,800.8 2,278.4 2,290.5 
Other*1,380.7 1,654.7 2,674.9 
Total$7,082.3 $8,253.0 $8,326.2 
* Other includes the end-markets of computing, consumer, networking, communications, etc.
Product Technologies:
Intelligent Power$3,648.6 $4,214.8 $3,997.3 
Intelligent Sensing1,379.2 1,606.8 1,573.7 
Other2,054.5 2,431.4 2,755.2 
Total$7,082.3 $8,253.0 $8,326.2 

Remaining Performance Obligations
A portion of the Company’s orders are firm commitments that are non-cancelable, 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 "LTSAs") for which the remaining performance obligations as of December 31, 2024 were approximately $11.9 billion (excluding the remaining performance obligations for contracts having a duration of one year or less). If products are shipped according to the terms of these contracts, the Company expects to recognize approximately 35% of this amount as revenue during the next twelve months. 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. The timing, pricing or amounts of products delivered under LTSAs may be modified or canceled in circumstances upon mutual agreement, and the actual revenue recognized for the remaining performance obligations in future periods may significantly fluctuate from current estimates.

Certain LTSAs include non-cancelable capacity payments from the customer, which are generally due within 30 days of
agreement. These payments reserve production availability or are prepayments for the same purpose and are not recognized as revenue until the performance obligations are satisfied. Payments received in advance of the satisfaction of performance obligations are recorded as contract liabilities. During the years ended December 31, 2024 and 2023, $110.9 million and $88.2 million, respectively, were recognized as revenue for satisfying the associated performance obligations.

Contract assets and contract liabilities were as follows (in millions):
As of December 31,
20242023
Contract assets included in:
Other current assets$39.9 $83.1 
Other assets— 12.0 
Total$39.9 $95.1 
Contract liabilities included in:
Accrued expenses and other current liabilities$98.2 $87.6 
Other long-term liabilities120.9 216.6 
Total$219.1 $304.2