Description of business, including segment and geographic area information

6 Months Ended

Jun. 30, 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						For Six Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
Revenue:
Analog	$	2,434	$	2,534	$	4,894	$	5,052
Embedded Processing	546		790		1,199		1,586
Other	259		344		475		624
Total revenue	$	3,239	$	3,668	$	6,568	$	7,262

Operating profit:
Analog	$	1,053	$	1,108	$	2,078	$	2,196
Embedded Processing	125		265		307		514
Other (a)	50		133		87		175
Total operating profit	$	1,228	$	1,506	$	2,472	$	2,885

(a)Includes acquisition charges and restructuring charges/other

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						For Six Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
Revenue:
United States	$	349	$	487	$	739	$	964
Asia (a)	2,174		2,157		4,201		4,249
Europe, Middle East and Africa	451		709		1,070		1,452
Japan	193		218		383		409
Rest of world	72		97		175		188
Total revenue	$	3,239	$	3,668	$	6,568	$	7,262

(a)Revenue from products shipped into China was $1.8 billion for the second quarters of both 2020 and 2019, and $3.5 billion for the first six months 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.