Description of business, including segment and geographic area information

3 Months Ended

Mar. 31, 2023

Description of business, including segment and geographic area information

We design and manufacture semiconductors that we sell 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. Our segments also reflect how management allocates resources and measures results.

•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
	March 31,
	2023		2022
Revenue:
Analog	$	3,289	$	3,816
Embedded Processing	832		782
Other	258		307
Total revenue	$	4,379	$	4,905

Operating profit:
Analog	$	1,574	$	2,150
Embedded Processing	237		315
Other (a)	123		98
Total operating profit	$	1,934	$	2,563

(a)Includes restructuring charges/other

Geographic area information

The following geographic area information is based on product shipment destination, which does not reflect end demand by geography.


	For Three Months Ended
	March 31,
	2023				2022
Revenue:
United States	$	555	13	%	$	494	10	%
China (a)	1,831		41		2,548		52
Rest of Asia	549		13		655		13
Europe, Middle East and Africa	986		23		814		17
Japan	289		6		263		5
Rest of world	169		4		131		3
Total revenue	$	4,379	100	%	$	4,905	100	%

(a)Revenue from products shipped into China 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.

The following additional geographic information includes our estimate for revenue based on the location of our end customers’ headquarters, providing a better representation of the geographic profile for where critical decisions are made.


	For Three Months Ended
	March 31,
	2023				2022
Revenue:
United States	$	1,357	31	%	$	1,570	32	%
China	876		20		1,275		26
Rest of Asia	394		9		540		11
Europe, Middle East and Africa (a)	1,270		29		1,079		22
Japan	438		10		392		8
Rest of world	44		1		49		1
Total revenue	$	4,379	100	%	$	4,905	100	%

(a)Revenue from end customers headquartered in Germany was 13% and 10% in the first quarters of 2023 and 2022, respectively.