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.

•

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 Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Revenue:
Analog	$	2,907	$	2,698	$	8,163	$	7,365
Embedded Processing		894		931		2,763		2,602
Other		460		487		1,141		1,244
Total revenue	$	4,261	$	4,116	$	12,067	$	11,211

Operating profit:
Analog	$	1,447	$	1,268	$	3,876	$	3,280
Embedded Processing		309		325		971		836
Other		181		195		350		404
Total operating profit	$	1,937	$	1,788	$	5,197	$	4,520

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				For Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Revenue:
United States	$	665	$	563	$	1,783	$	1,434
Asia (a)		2,520		2,398		7,075		6,561
Europe, Middle East and Africa		769		812		2,304		2,228
Japan		218		272		656		783
Rest of world		89		71		249		205
Total revenue	$	4,261	$	4,116	$	12,067	$	11,211

(a)	Revenue from products shipped into China, including Hong Kong, was $2.0 billion and $1.8 billion in the third quarters of 2018 and 2017, respectively, and $5.3 billion and $4.9 billion in the first nine months of 2018 and 2017, respectively.