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 nine-month periods ended August 4, 2018 and July 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
	August 4, 2018						July 29, 2017
	Revenue		% of Revenue		Y/Y%		Revenue		% of Revenue
Industrial	$	793,322	50	%	14	%	$	693,257	48	%
Automotive	246,865		16	%	6	%	232,505		16	%
Consumer	208,589		13	%	(17	)%	252,313		18	%
Communications	323,903		21	%	27	%	255,827		18	%
Total revenue	$	1,572,679	100	%	10	%	$	1,433,902	100	%



	Nine Months Ended
	August 4, 2018						July 29, 2017
	Revenue		% of Revenue*		Y/Y%		Revenue		% of Revenue*
Industrial	$	2,320,637	50	%	43	%	$	1,626,634	46	%
Automotive	739,361		16	%	32	%	561,591		16	%
Consumer	646,520		14	%	(12	)%	733,298		21	%
Communications	897,838		19	%	39	%	644,810		18	%
Total revenue	$	4,604,356	100	%	29	%	$	3,566,333	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 nine-month periods ended August 4, 2018 and July 29, 2017 were as follows:



	Three Months Ended				Nine Months Ended
Region	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017
United States	$	524,953	$	530,335	$	1,566,986	$	1,383,661
Rest of North and South America	26,606		25,961		77,300		76,548
Europe	375,228		346,436		1,098,027		865,949
Japan	172,823		153,188		537,051		338,368
China	325,387		239,701		875,976		590,893
Rest of Asia	147,682		138,281		449,016		310,914
Total revenue	$	1,572,679	$	1,433,902	$	4,604,356	$	3,566,333

In the three- and nine-month periods ended August 4, 2018 and July 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.