Description of business, including segment and geographic area information

9 Months Ended

Sep. 30, 2019

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 – consisting of the following product lines: Power, Signal Chain and High Volume.

•Embedded Processing – consisting of the following product lines: Connected Microcontrollers and Processors.

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, calculators and custom ASIC products.

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.

Segment information


	For Three Months Ended						For Nine Months Ended
	September 30,						September 30,
	2019		2018		2019		2018
Revenue:
Analog	$	2,674	$	2,907	$	7,726	$	8,163
Embedded Processing	724		894		2,310		2,763
Other	373		460		997		1,141
Total revenue	$	3,771	$	4,261	$	11,033	$	12,067

Operating profit:
Analog	$	1,231	$	1,447	$	3,427	$	3,876
Embedded Processing	233		309		747		971
Other	125		181		300		350
Total operating profit	$	1,589	$	1,937	$	4,474	$	5,197

Geographic area information

The following geographic area information includes revenue based on product shipment destination. The revenue information is not necessarily indicative of the geographic area in which the end applications containing our products are ultimately consumed because our products tend to be shipped to the locations where our customers manufacture their products. Specifically, many of our products are shipped to our customers in China who may include these parts in the manufacture of their own end products, which they may in turn export to their customers around the world.


	For Three Months Ended						For Nine Months Ended
	September 30,						September 30,
	2019		2018		2019		2018
Revenue:
United States	$	504	$	665	$	1,468	$	1,783
Asia (a)	2,263		2,520		6,512		7,075
Europe, Middle East and Africa	699		769		2,151		2,304
Japan	198		218		607		656
Rest of world	107		89		295		249
Total revenue	$	3,771	$	4,261	$	11,033	$	12,067

(a)Revenue from products shipped into China was $1.9 billion and $2.0 billion in the third quarters of 2019 and 2018, respectively, and $5.4 billion and $5.3 billion in the first nine months of 2019 and 2018, respectively.