Segment Information

In the first quarter of fiscal 2018, the Company completed organizational changes designed to integrate the operations of Linear into the Company’s organizational structure and to reflect the evolution of the Company's markets. As a result of these organizational changes, the Company re-evaluated its reporting structure under the new organization and concluded that the Company continues to operate in one reportable segment based on the aggregation of eight operating segments. The Company designs, develops, manufactures and markets a broad range of integrated circuits (ICs). The Chief Executive Officer has been identified as the Company's Chief Operating Decision Maker. The Company has determined that all of the Company's operating segments share the following similar economic characteristics, and therefore meet the criteria established for operating segments to be aggregated into one reportable segment, namely:

•The primary source of revenue for each operating segment is the sale of ICs.

•The ICs sold by each of the Company's operating segments are manufactured using similar semiconductor manufacturing processes and raw materials in either the Company’s own production facilities or by third-party wafer fabricators using proprietary processes.

•The Company sells its products to tens of thousands of customers worldwide. Many of these customers use products spanning all operating segments in a wide range of applications.

•The ICs marketed by each of the Company's operating segments are sold globally through a direct sales force, third-party distributors, independent sales representatives and via the Company's website to the same types of customers.

All of the Company's operating segments share similar economic characteristics, including long-term gross margins. The causes for variation in operating and financial performance are the same among the Company's operating segments and include factors such as (i) life cycle and price and cost fluctuations, (ii) number of competitors, (iii) product differentiation and (iv) size of market opportunity. Additionally, each operating segment is subject to the overall cyclical nature of the semiconductor industry. Lastly, the number and composition of employees and the amounts and types of tools and materials required for production of products are proportionately similar for each operating segment.

Revenue Trends by End Market

The following table summarizes revenue by end market for the three- and six-month periods ended May 5, 2018 and April 29, 2017. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which the Company’s product will be incorporated. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.



	Three Months Ended
	May 5, 2018						April 29, 2017
	Revenue		% of Revenue		Y/Y%		Revenue		% of Revenue
Industrial	$	788,281	52	%	47	%	$	536,437	47	%
Automotive	238,839		16	%	28	%	185,871		16	%
Consumer	198,063		13	%	(6	)%	211,575		18	%
Communications	287,870		19	%	34	%	214,099		19	%
Total revenue	$	1,513,053	100	%	32	%	$	1,147,982	100	%



	Six Months Ended
	May 5, 2018						April 29, 2017
	Revenue		% of Revenue*		Y/Y%		Revenue		% of Revenue
Industrial	$	1,529,179	50	%	64	%	$	932,865	44	%
Automotive	492,477		16	%	50	%	329,234		15	%
Consumer	437,031		14	%	(9	)%	481,928		23	%
Communications	572,990		19	%	48	%	388,404		18	%
Total revenue	$	3,031,677	100	%	42	%	$	2,132,431	100	%

* The sum of the individual percentages may not equal the total due to rounding.

Revenue Trends by Geographic Region

Revenue by geographic region, based on the primary end customer location, for the three- and six-month periods ended May 5, 2018 and April 29, 2017 were as follows:



	Three Months Ended				Six Months Ended
Region	May 5, 2018		April 29, 2017		May 5, 2018		April 29, 2017
United States	$	502,258	$	422,328	$	1,042,033	$	853,326
Rest of North and South America	26,208		27,630		50,694		50,587
Europe	364,563		293,178		722,799		519,513
Japan	183,003		96,289		364,228		185,180
China	282,465		198,209		550,589		351,192
Rest of Asia	154,556		110,348		301,334		172,633
Total revenue	$	1,513,053	$	1,147,982	$	3,031,677	$	2,132,431

In the three- and six-month periods ended May 5, 2018 and April 29, 2017, the predominant country comprising “Rest of North and South America” is Canada; the predominant countries comprising “Europe” are Germany, the Netherlands and Sweden; and the predominant countries comprising “Rest of Asia” are South Korea and Taiwan.