Description of business, including segment and geographic area information

3 Months Ended

Mar. 31, 2020

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
	March 31,
	2020		2019
Revenue:
Analog	$	2,460	$	2,518
Embedded Processing	653		796
Other	216		280
Total revenue	$	3,329	$	3,594

Operating profit:
Analog	$	1,025	$	1,088
Embedded Processing	182		249
Other	37		42
Total operating profit	$	1,244	$	1,379

Geographic area information

The following geographic area information includes revenue, based on product shipment destination. The geographic revenue information does not necessarily reflect end demand by geography because our products tend to be shipped to the locations where our customers manufacture their products.


	For Three Months Ended
	March 31,
	2020		2019
Revenue:
United States	$	390	$	477
Asia (a)	2,027		2,092
Europe, Middle East and Africa	619		743
Japan	190		191
Rest of world	103		91
Total revenue	$	3,329	$	3,594

(a)Revenue from products shipped into China was $1.7 billion in the first quarters of both 2020 and 2019, which includes shipments to customers that manufacture in China and then export end products to their customers around the world, as well as distributors that transship inventory through China to service other countries.