Description of business, including segment and geographic area information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Description of business, including segment and geographic area information

Description of business, including segment and geographic area information

We design, make and sell semiconductors to electronics designers and manufacturers all over the world.We have two reportable segments, which are established along major categories of products as follows:

• Analog – consists of the following product lines: High Volume Analog & Logic; Power Management; High Performance Analog; and Silicon Valley Analog, which consists primarily of products that we acquired through our purchase of National Semiconductor Corporation (National) in 2011.

• Embedded Processing – consists of the following product lines: Processor, Microcontrollers and Connectivity.

We report the results of our remaining business activities in Other. Other includes operating segments that do not meet the quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments. Other includes DLP® products, custom application-specific integrated circuits, calculators, royalties, and products from our former Wireless segment, which was eliminated effective January 1, 2013.

We also include in Other items that are not used in evaluating the results of or in allocating resources to our segments. These include acquisition-related charges (see Note 3); restructuring charges (see Note 4); and certain corporate-level items, such as litigation expenses, environmental costs, insurance settlements, and gains and losses from other activities, including asset dispositions. We allocate the remainder of our expenses associated with corporate activities to our operating segments based on specific methodologies, such as percentage of operating expenses or headcount.

Our centralized manufacturing and support organizations, such as facilities, procurement and logistics, provide support to our operating segments, including those in Other. Costs incurred by these organizations, including depreciation, are charged to the segments on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the segments’ results and, therefore, is not provided. The assets and liabilities associated with these organizations are included in Other.

With the exception of goodwill, we do not identify or allocate assets by operating segment, nor does the chief operating decision maker evaluate operating segments using discrete asset information. There was no significant intersegment revenue. The accounting policies of the segments are the same as those described below in the summary of significant accounting policies and practices.

Segment information

	For Years Ended December 31,
	2014		2013		2012
Revenue:
Analog	$	8,104	$	7,194	$	6,998
Embedded Processing	2,740		2,450		2,257
Other	2,201		2,561		3,570
Total revenue	$	13,045	$	12,205	$	12,825
Operating profit:
Analog	$	2,786	$	1,859	$	1,650
Embedded Processing	384		185		158
Other	777		788		165
Total operating profit	$	3,947	$	2,832	$	1,973

Geographic area information

The following geographic area information includes revenue, based on product shipment destination and royalty payor location, and property, plant and equipment, based on physical location:

	For Years Ended December 31,
	2014		2013		2012
Revenue:
United States	$	1,625	$	1,666	$	1,596
Asia (a)	7,915		7,370		7,808
Europe	2,293		1,926		1,861
Japan	1,032		1,072		1,357
Rest of world	180		171		203
Total revenue	$	13,045	$	12,205	$	12,825

(a) Revenue from products shipped into China, including Hong Kong, was $5.7 billion in 2014, $5.2 billion in 2013 and $5.4 billion in 2012.

	December 31,
	2014		2013		2012
Property, plant and equipment, net:
United States	$	1,436	$	1,765	$	1,931
Asia	1,096		1,277		1,547
Europe	162		196		241
Japan	124		144		174
Rest of world	22		17		19
Total property, plant and equipment, net	$	2,840	$	3,399	$	3,912