Description of Business, Including Segment and Geographic Area Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Description of business, including segment and geographic area information

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
	March 31,
	2019		2018
Revenue:
Analog	$	2,518	$	2,566
Embedded Processing		796		926
Other		280		297
Total revenue	$	3,594	$	3,789
Operating profit:
Analog	$	1,088	$	1,166
Embedded Processing		249		328
Other		42		54
Total operating profit	$	1,379	$	1,548

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,
	2019		2018
Revenue:
United States	$	477	$	504
Asia (a)		2,092		2,215
Europe, Middle East and Africa		743		771
Japan		191		220
Rest of world		91		79
Total revenue	$	3,594	$	3,789

(a) Revenue from products shipped into China was $1.7 billion and $1.6 billion in the first quarters of 2019 and 2018, respectively.