Segment and Geographic Information

6 Months Ended

Jul. 01, 2017

Segment Information

As of July 1, 2017, Lattice had one operating segment: the core Lattice business, which includes IP and semiconductor devices. Qterics, a discrete software-as-a-service business unit, was previously an immaterial operating segment in the Lattice legal entity structure. In April 2016, we sold Qterics to an unrelated third party for net proceeds of $2.0 million, net of cash sold, resulting in a gain of $2.6 million. The gain was included in Other income, net in the Consolidated Statements of Operations in the period of sale. In the second quarter of fiscal 2017, we received a final escrow payment of $0.3 million related to the sale of Qterics, which was included as a gain in Other income, net in the Consolidated Statements of Operations for the current period.

Geographic Information

Our revenue by major geographic area, based on ship-to location, is presented in the following table:



	Three Months Ended								Six Months Ended
(In thousands)	July 1, 2017				July 2, 2016				July 1, 2017				July 2, 2016
Asia	$	64,946	69	%	$	67,655	68	%	$	138,404	70	%	$	133,167	68	%
Europe	10,579		11		14,729		15		21,659		11		30,738		16
Americas	18,612		20		16,825		17		38,661		19		31,816		16
Total revenue	$	94,137	100	%	$	99,209	100	%	$	198,724	100	%	$	195,721	100	%

We assign revenue to geographies based on the customer ship-to address at the point where revenue is recognized. In the case of sell-in distributors and OEM customers, revenue is typically recognized, and geography is assigned, when products are shipped to our distributor or customer. In the case of sell-through distributors, revenue is recognized when resale occurs and geography is assigned based on the customer location on the resale reports provided by the distributor.

There were no material changes to property and equipment by major geographic area as of July 1, 2017 as compared to December 31, 2016.