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Segment Information
 12 Months Ended
Dec. 31, 2016
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Information
Note 18: Segment Information

During the third quarter of 2016, the Company realigned its segments into three operating segments to optimize efficiencies resulting from the acquisition of Fairchild. These operating segments also represent its three reporting segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group. The results of the System Solutions Group, which was previously the Company’s fourth operating segment, and which did not have goodwill, are now part of the three operating segments and previously-reported information has been presented based on the new structure to reflect the current organizational structure. The Company’s Power and Analog Solutions Groups include the business acquired in the Fairchild Transaction. See Note 4: ''Acquisitions and Divestitures'' for additional information with respect to the Company's recent acquisitions.

Each of the Company's major product lines has been examined and each product line has been assigned to a reportable segment, as illustrated in the table below, based on the Company's operating strategy. Because many products are sold into different end-markets, the total revenue reported for a segment is not indicative of actual sales in the end-market associated with that segment, but rather is the sum of the revenue from the product lines assigned to that segment. These segments represent the Company's view of the business and as such are used to evaluate progress of major initiatives and allocation of resources.

Power Solutions Group
 
Analog Solutions Group
 
Image Sensor Group
Bipolar Power (8)
 
Automotive ASSPs (1)
 
CCD Image Sensors (7)
Thyristor (8)
 
Analog Automotive (2)
 
CMOS Image Sensors (7)
Small Signal (8)
 
Automotive Power Switching (3)
 
Proximity Sensors (13)
Zener (8)
 
Automotive Mixed-Signal Solutions (1)
 
Linear Light Sensors (7)
Protection (3)
 
Medical ASICs & ASSPs (1)
 
Image Stabilizer ICs (12)
Rectifier (8)
 
Mixed-Signal ASICs (1)
 
Auto Focus ICs (12)
Filters (3)
 
Industrial ASSPs (1)
 
 
MOSFETs (3)
 
High Frequency / Timing (4)
 
 
Signal & Interface (2)
 
IPDs (5)
 
 
Standard Logic (6)
 
Foundry and Manufacturing Services (5)
 
 
LDO's & VREGs (2)
 
Hearing Components (1)
 
 
EE Memory and Programmable Analog (9)
 
DC-DC Conversion (2)
 
 
IGBTs (3)
 
Analog Switches (6)
 
 
Power MOSFETs (10)
 
AC-DC Conversion (2)
 
 
Power and Signal Discretes (10)
 
Low Voltage Power Management (2)
 
 
Intelligent Power Modules (11)
 
Power Switching (2)
 
 
Smart Passive Sensors (13)
 
RF Antenna Tuning Solutions (1)
 
 
PIM (14)
 
Motor Driver ICs (12)
 
 
 
 
Display Drivers (12)
 
 
 
 
ASICs (12)
 
 
 
 
Microcontrollers (12)
 
 
 
 
Flash Memory (12)
 
 
 
 
Touch Sensor (12)
 
 
 
 
Power Supply IC (12)
 
 
 
 
Audio DSP (12)
 
 
 
 
Audio Tuners (12)
 
 

_______________________

(1) ASIC products
 
(8) Discrete products
(2) Analog products
 
(9) Memory products
(3) TMOS products
 
(10) HD products
(4) ECL products
 
(11) IPM products
(5) Foundry products / services
 
(12) LSI products
(6) Standard logic products
 
(13) Other sensor products
(7) Image sensor / ASIC products
 
(14) PIM Products


The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on segment revenues and gross profit.
 
The Company's wafer manufacturing facilities fabricate ICs for all business units, as necessary, and their operating costs are reflected in the segments' cost of revenues on the basis of product costs. Because operating segments are generally defined by the products they design and sell, they do not make sales to each other. The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information.
 
In addition to the operating and reporting segments mentioned above, the Company also operates global operations, sales and marketing, information systems, finance and administration groups that are led by vice presidents who report to the Chief Executive Officer. A portion of the expenses of these groups are allocated to the segments based on specific and general criteria and are included in the segment results reported below. The Company does not allocate income taxes or interest expense to its operating segments as the operating segments are principally evaluated on gross profit. Additionally, restructuring, asset impairments and other, net and certain other manufacturing and operating expenses, which include corporate research and development costs, unallocated inventory reserves and miscellaneous nonrecurring expenses, are not allocated to any segment.
Revenues and gross profit for the Company’s reportable segments for the years ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively, are as follows (in millions):
 
 
Power Solutions Group
 
Analog Solutions Group
 
Image Sensor Group
 
Total
For year ended December 31, 2016:
 
 
 
 
 
 
 
 
Revenues from external customers
 
$
1,708.6

 
$
1,481.5

 
$
716.8

 
$
3,906.9

Segment gross profit
 
566.3

 
589.0

 
236.5

 
1,391.8

For year ended December 31, 2015:
 
 
 
 
 
 
 
 
Revenues from external customers
 
$
1,409.9

 
$
1,338.6

 
$
747.3

 
$
3,495.8

Segment gross profit
 
428.7

 
537.9

 
242.4

 
1,209.0

For year ended December 31, 2014:
 
 
 
 
 
 
 
 
Revenues from external customers
 
$
1,423.5

 
$
1,415.8

 
$
322.5

 
$
3,161.8

Segment gross profit
 
446.8

 
574.5

 
97.0

 
1,118.3



Gross profit shown above and below is exclusive of the amortization of acquisition related intangible assets. Depreciation expense is included in segment gross profit. Reconciliations of segment gross profit to consolidated gross profit are as follows (in millions): 
 
Year Ended
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
Gross profit for reportable segments
$
1,391.8

 
$
1,209.0

 
$
1,118.3

Less: unallocated manufacturing costs 
(94.9
)
 
(15.8
)
 
(33.4
)
Consolidated gross profit
$
1,296.9

 
$
1,193.2

 
$
1,084.9



The Company's consolidated assets are not specifically ascribed to its individual reporting segments. Rather, assets used in operations are generally shared across the Company's reporting segments.

The Company operates in various geographic locations. Sales to unaffiliated customers have little correlation with the location of manufacturers. It is, therefore, not meaningful to present operating profit by geographical location.

Revenues by geographic location, including local sales made by operations within each area, based on sales billed from the respective country, are summarized as follows (in millions): 
 
Year Ended
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
United States
$
588.4

 
$
544.3

 
$
497.0

United Kingdom
541.1

 
503.2

 
497.9

Hong Kong
1,086.8

 
874.4

 
975.3

Japan
334.5

 
281.7

 
293.1

Singapore
1,110.4

 
1,120.7

 
786.5

Other
245.7

 
171.5

 
112.0

 
$
3,906.9

 
$
3,495.8

 
$
3,161.8



Property, plant and equipment, net by geographic location, are summarized as follows (in millions): 
 
December 31,
2016
 
December 31,
2015
United States
$
548.1

 
$
326.2

Korea
385.9

 
0.2

Malaysia
224.0

 
226.5

Philippines
381.7

 
259.1

China
217.7

 
111.0

Other
401.7

 
351.1

 
$
2,159.1

 
$
1,274.1



For the years ended December 31, 2016, December 31, 2015, and December 31, 2014, there were no individual customers, including distributors, which accounted for more than 10% of the Company’s total consolidated revenues.