Segment Information

The Chief Operating Decision Maker is the Company’s President and Chief Executive Officer.

During the first quarter of fiscal 2019, the Company reorganized its operating segment structure resulting in a change to the composition of its reportable segments. Prior to the reorganization, some product groups of the acquired GigPeak business were aggregated into the Communications segment while the rest were included in the Computing, Consumer and Industrial segment. As a result of the reorganization, the entire GigPeak business was aggregated to the Computing, Consumer and Industrial segment. The segment financial results for the three months ended July 2, 2017 have been adjusted to conform to the new reportable segment structure effective April 2, 2018.

The Company's reportable segments include the following:


•	Communications segment: includes clock and timing solutions, radio frequency (RF), flow-control management such as multi-port products, telecommunication interface, high-speed static random access memory, first in and first out memory, digital logic and frequency control solutions and Serial RapidIO® switching solutions.


•	Computing, Consumer and Industrial segment: includes clock generation and distribution products, high-performance server memory interfaces, wireless power, PCI Express®, signal integrity, power management solutions, signal integrity products, optical interconnect, video distribution and contribution solutions and sensing products for mobile, automotive and industrial solutions.

The tables below provide information about these segments:



Revenues by segment	Three Months Ended
(in thousands)	July 1, 2018		July 2, 2017
			(1)
Communications	$	67,086	$	56,548
Computing, Consumer and Industrial	161,430		140,165
Total revenues	$	228,516	$	196,713



Income by segment	Three Months Ended
(in thousands)	July 1, 2018			July 2, 2017
				(1)
Communications	$	31,536		$	20,752
Computing, Consumer and Industrial	36,227			28,931
Unallocated expenses:
Amortization of intangible assets	(9,334		)	(10,841		)
Inventory fair market value adjustment	(790		)	(4,081		)
Stock-based compensation	(15,063		)	(11,820		)
Severance, retention and facility closure costs	(488		)	(653		)
Acquisition-related costs and other	—			(2,225		)
Other-than-temporary impairment loss on investment	(2,000		)	—
Interest expense and other, net	(6,224		)	(4,331		)
Income before income taxes	$	33,864		$	15,732
(1) Prior period numbers have been adjusted to conform to the current organizational structure.

The Company does not allocate goodwill and intangible assets impairment charge, IPR&D, severance, acquisition-related costs, stock-based compensation, interest income and other, and interest expense to its segments. In addition, the Company does not allocate assets to its segments. The Company excludes these items consistent with the manner in which it internally evaluates its results of operations.

Revenues from unaffiliated customers by geographic area, based on the customers' shipment locations, were as follows:



	Three Months Ended
(in thousands)	July 1, 2018		July 2, 2017
Hong Kong	$	80,675	$	63,888
Korea	27,527		18,162
Rest of Asia Pacific	67,292		64,536
Americas (2)	23,268		25,795
Europe	29,754		24,332
Total revenues	$	228,516	$	196,713

(2) The revenues from the customers in the U.S. were $18.2 million and $22.1 million in the three months ended July 1, 2018 and July 2, 2017, respectively.

The Company utilizes global and regional distributors around the world, that buy products directly from the Company on behalf of their customers. Two distributors, Uniquest and its affiliates and Avnet and its affiliates, accounted for 14% and 13%, respectively, of the Company's revenues in the three months ended July 1, 2018. One direct original equipment manufacturer (OEM) customer, SK Hynix, accounted for 10% of the Company's revenues in the three months ended July 1, 2018. One distributor, Avnet and its affiliates accounted for 11% of the Company's revenues in the three months ended July 2, 2017. One direct OEM customer, Samsung Electronics accounted for 11% of the Company's revenues in the three months ended July 2, 2017.

As of July 1, 2018, one distributor represented approximately 20% of the Company’s gross accounts receivable. As of April 1, 2018, one distributor represented approximately 15% of the Company’s gross accounts receivable.

The Company’s significant operations outside of the United States include a test facility in each of Malaysia and Germany, design centers in the U.S., Canada and China, and sales subsidiaries in APAC and Europe. The Company's net property, plant and equipment are summarized below by geographic area:



(in thousands)	July 1, 2018		April 1, 2018
United States	$	40,704	$	41,230
Malaysia	29,379		28,264
Germany	9,689		10,210
All other countries	7,163		7,141
Total property, plant and equipment, net	$	86,935	$	86,845