Description of business, including segment and geographic area information

6 Months Ended

Jun. 30, 2022

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.

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,
	2022		2021		2022		2021
Revenue:
Analog	$	3,992	$	3,464	$	7,808	$	6,744
Embedded Processing	821		780		1,603		1,547
Other	399		336		706		578
Total revenue	$	5,212	$	4,580	$	10,117	$	8,869

Operating profit:
Analog	$	2,226	$	1,778	$	4,376	$	3,424
Embedded Processing	324		312		639		599
Other (a)	173		123		271		129
Total operating profit	$	2,723	$	2,213	$	5,286	$	4,152

(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,
	2022		2021		2022		2021
Revenue:
United States	$	577	$	529	$	1,071	$	922
Asia (a)	3,395		2,993		6,598		5,851
Europe, Middle East and Africa	822		696		1,636		1,378
Japan	276		235		539		474
Rest of world	142		127		273		244
Total revenue	$	5,212	$	4,580	$	10,117	$	8,869

(a)Revenue from products shipped into China was $2.8 billion and $2.5 billion in the second quarters of 2022 and 2021, respectively, and $5.3 billion and $4.8 billion in the first six months of 2022 and 2021, 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.