Segment Information

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION AND CONCENTRATIONS

15.     SEGMENT INFORMATION AND CONCENTRATIONS

The Company has a single reportable operating segment which designs, develops, manufactures, and markets similar proprietary semiconductor products, including intellectual property. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM, and how that information is used to make operating decisions, allocate resources, and assess performance. The Company’s CODM is the president and chief executive officer. The results of operations provided to and analyzed by the CODM are at the consolidated level and accordingly, key resource decisions and assessment of performance are performed at the consolidated level. The Company assesses its determination of operating segments at least annually.

Disaggregation of Revenue and Geographic Information

The Company presents net revenue by geographic area based upon the location of the OEMs’ headquarters and sales channel as it believes that doing so best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by

economic factors. Individually insignificant OEMs are presented based on sales region. Net revenue by geographic area is as follows (in millions):

	Fiscal Years Ended
	September 30, 2022		October 1, 2021		October 2, 2020
United States	$	3,685.7	$	3,228.1	$	2,012.8
China	599.6		994.2		700.7
Taiwan	430.4		404.2		240.4
South Korea	458.2		264.5		254.6
Europe, Middle East, and Africa	235.8		180.1		122.9
Other Asia-Pacific	75.8		38.0		24.3
Total	$	5,485.5	$	5,109.1	$	3,355.7

Net revenue by sales channel is as follows (in millions):

	Fiscal Years Ended
	September 30, 2022		October 1, 2021		October 2, 2020
Distributors	$	4,488.1	$	4,539.7	$	2,599.8
Direct customers	997.4		569.4		755.9
Total	$	5,485.5	$	5,109.1	$	3,355.7

The Company’s revenue from external customers is generated principally from the sale of semiconductor products. Accordingly, the Company considers its product offerings to be similar in nature and therefore not segregated for reporting purposes.

Net property, plant, and equipment balances, based on the physical locations within the indicated geographic areas are as follows (in millions):

	As of
	September 30, 2022		October 1, 2021
Japan	$	679.7	$	598.9
Singapore	363.3		340.0
Mexico	296.7		362.9
United States	246.0		183.5
Rest of world	19.1		16.3
	$	1,604.8	$	1,501.6

Concentrations

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade accounts receivable. Trade accounts receivable are primarily derived from sales to manufacturers of communications and consumer products and electronic component distributors. The Company performs ongoing credit evaluations of customers.

In fiscal 2022, 2021, and 2020, Apple, through sales to multiple distributors, contract manufacturers, and direct sales for multiple applications including smartphones, tablets, desktop, and notebook computers, watches and other devices, in the aggregate accounted for 58%, 59%, and 56% of the Company’s net revenue, respectively.

At September 30, 2022, the Company’s three largest accounts receivable balances comprised 79% of aggregate gross accounts receivable. This concentration was 70% at October 1, 2021, and 70% at October 2, 2020.