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Description of Business, Including Segment and Geographic Area Information
12 Months Ended
Dec. 31, 2020
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, Analog and Embedded Processing, each of which represents groups of similar products that are combined on the basis of similar design and development requirements, product characteristics, manufacturing processes and distribution channels.
Analog semiconductors change real-world signals, such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors. Analog semiconductors are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy, whether the equipment is plugged into a wall or using a battery. Our Analog segment consists of two major product lines: Power and Signal Chain.
Embedded Processing products are the digital “brains” of many types of electronic equipment. They are designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application.
During 2020, we reorganized the product lines within our Analog segment to simplify our business structure into our Power and Signal Chain product lines. These changes had no effect on either our previously reported consolidated financial statements or our reportable segment results.
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.
In Other, we also include items that are not used in evaluating the results of or in allocating resources to our segments. Examples of these items include acquisition charges (see Note 7); restructuring charges (see Note 12); 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.
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. We have no material intersegment revenue. The accounting policies of the segments are consistent with those described in the summary of significant accounting policies and practices.
Segment information
For Years Ended December 31,
202020192018
Revenue:
Analog$10,886 $10,223 $10,801 
Embedded Processing2,570 2,943 3,554 
Other1,005 1,217 1,429 
Total revenue$14,461 $14,383 $15,784 
Operating profit:
Analog$4,912 $4,477 $5,109 
Embedded Processing743 907 1,205 
Other239 339 399 
Total operating profit$5,894 $5,723 $6,713 
Geographic area information
The following geographic area information includes revenue, based on product shipment destination, and property, plant and equipment, based on physical location. 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 Years Ended December 31,
202020192018
Revenue:
United States$1,547 $1,827 $2,288 
Asia (a)9,541 8,650 9,240 
Europe, Middle East and Africa2,249 2,707 3,047 
Japan734 796 869 
Rest of world390 403 340 
Total revenue$14,461 $14,383 $15,784 
(a)Revenue from products shipped into China was $8.0 billion, $7.2 billion and $7.0 billion in 2020, 2019 and 2018, respectively, 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.
December 31,
20202019
Property, plant and equipment:
United States$2,036 $1,998 
Asia (a)1,005 1,046 
Europe, Middle East and Africa52 63 
Japan165 185 
Rest of world11 11 
Total property, plant and equipment$3,269 $3,303 
(a)Property, plant and equipment at our two sites in the Philippines was $333 million and $394 million as of December 31, 2020 and 2019, respectively. Property, plant and equipment at our sites in China was $370 million and $304 million as of December 31, 2020 and 2019, respectively.