1. 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.

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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,
	2018		2017
Revenue:
Analog	$	2,566	$	2,256
Embedded Processing		926		803
Other		297		343
Total revenue	$	3,789	$	3,402

Operating profit:
Analog	$	1,166	$	935
Embedded Processing		328		240
Other		54		77
Total operating profit	$	1,548	$	1,252

Geographic area information

The following geographic area information includes revenue based on product shipment destination. The revenue information is not necessarily indicative of the geographic area in which the end applications containing our products are ultimately consumed because our products tend to be shipped to the locations where our customers manufacture their products. Specifically, many of our products are shipped to our customers in China who may include these parts in the manufacture of their own end products, which they may in turn export to their customers around the world.

	For Three Months Ended
	March 31,
	2018		2017
Revenue:
United States	$	504	$	399
Asia (a)		2,215		2,004
Europe, Middle East and Africa		771		683
Japan		220		250
Rest of world		79		66
Total revenue	$	3,789	$	3,402

(a)	Revenue from products shipped into China, including Hong Kong, was $1.6 billion and $1.5 billion in the three months ended March 31, 2018, and March 31, 2017, respectively.