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Revenue and Segment Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting, Measurement Disclosures [Abstract] |
Revenue and Segment Information | Note 3: Revenue and Segment Information Revenue recognized for product sales amounted to $5,227.8 million, $5,492.0 million and $5,849.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. Revenue recognized for product development agreements amounted to $27.2 million, $25.9 million and $29.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company is organized into three operating and reportable segments consisting of PSG, ASG and ISG. 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 revenue 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 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 charges, 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. In addition to the operating and reportable segments, the Company also operates global operations, sales and marketing, information systems and finance and administration groups. A portion of the expenses for each of these groups are allocated to the segments based on specific and general criteria and are included in the segment results. Revenue and gross profit for the Company’s operating and reportable segments are as follows (in millions):
|  | PSG |  | ASG |  | ISG |  | Total
For year ended December 31, 2020: |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 2,606.1 |  |  | $ | 1,910.4 |  |  | $ | 738.5 |  |  | $ | 5,255.0 |
Segment gross profit |  | 801.7 |  |  | 730.5 |  |  | 237.7 |  |  | 1,769.9 |
For year ended December 31, 2019: |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 2,788.3 |  |  | $ | 1,972.3 |  |  | $ | 757.3 |  |  | $ | 5,517.9 |
Segment gross profit |  | 976.0 |  |  | 794.8 |  |  | 275.4 |  |  | 2,046.2 |
For year ended December 31, 2018: |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 3,038.2 |  |  | $ | 2,071.2 |  |  | $ | 768.9 |  |  | $ | 5,878.3 |
Segment gross profit |  | 1,110.1 |  |  | 878.3 |  |  | 317.1 |  |  | 2,305.5 |
The Company had one customer, a distributor, whose revenue accounted for approximately 11% of the total revenue for the year ended December 31, 2020. There were no customers whose revenue exceeded 10% or more of total revenue for the years ended December 31, 2019 or 2018. Gross profit 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,
| 2020 |  | 2019 |  | 2018
Gross profit for reportable segments | $ | 1,769.9 |  |  | $ | 2,046.2 |  |  | $ | 2,305.5 |
Less: unallocated manufacturing costs | (54.1) |  |  | (72.6) |  |  | (66.8) |
Consolidated gross profit | $ | 1,715.8 |  |  | $ | 1,973.6 |  |  | $ | 2,238.7 |
Revenue for the Company's operating and reportable segments disaggregated into geographic locations based on sales billed from the respective country and sales channels are as follows (in millions):
| Year Ended December 31, 2020
| PSG |  | ASG |  | ISG |  | Total
Geographic Location |  |  |  |  |  |  |
Singapore | $ | 978.0 |  |  | $ | 695.0 |  |  | $ | 126.5 |  |  | $ | 1,799.5 |
Hong Kong | 723.2 |  |  | 410.6 |  |  | 177.8 |  |  | 1,311.6 |
United Kingdom | 395.7 |  |  | 264.5 |  |  | 145.7 |  |  | 805.9 |
United States | 282.8 |  |  | 282.0 |  |  | 163.8 |  |  | 728.6 |
Other | 226.4 |  |  | 258.3 |  |  | 124.7 |  |  | 609.4 |
Total | $ | 2,606.1 |  |  | $ | 1,910.4 |  |  | $ | 738.5 |  |  | $ | 5,255.0 |
Sales Channel |  |  |  |  |  |  |
Distributors | $ | 1,776.4 |  |  | $ | 986.4 |  |  | $ | 406.8 |  |  | $ | 3,169.6 |
OEM | 673.6 |  |  | 794.6 |  |  | 297.5 |  |  | 1,765.7 |
Electronic Manufacturing Service Providers | 156.1 |  |  | 129.4 |  |  | 34.2 |  |  | 319.7 |
Total | $ | 2,606.1 |  |  | $ | 1,910.4 |  |  | $ | 738.5 |  |  | $ | 5,255.0 |
| Year Ended December 31, 2019
| PSG |  | ASG |  | ISG |  | Total
Geographic Location |  |  |  |  |  |  |
Singapore | $ | 864.7 |  |  | $ | 679.7 |  |  | $ | 168.7 |  |  | $ | 1,713.1 |
Hong Kong | 843.5 |  |  | 436.8 |  |  | 137.0 |  |  | 1,417.3 |
United Kingdom | 467.1 |  |  | 303.5 |  |  | 151.0 |  |  | 921.6 |
United States | 356.3 |  |  | 332.6 |  |  | 121.4 |  |  | 810.3 |
Other | 256.7 |  |  | 219.7 |  |  | 179.2 |  |  | 655.6 |
Total | $ | 2,788.3 |  |  | $ | 1,972.3 |  |  | $ | 757.3 |  |  | $ | 5,517.9 |
Sales Channel |  |  |  |  |  |  |
Distributors | $ | 1,740.6 |  |  | $ | 971.5 |  |  | $ | 461.0 |  |  | $ | 3,173.1 |
OEM | 857.5 |  |  | 860.3 |  |  | 258.8 |  |  | 1,976.6 |
Electronic Manufacturing Service Providers | 190.2 |  |  | 140.5 |  |  | 37.5 |  |  | 368.2 |
Total | $ | 2,788.3 |  |  | $ | 1,972.3 |  |  | $ | 757.3 |  |  | $ | 5,517.9 |
| Year Ended December 31, 2018
| PSG |  | ASG |  | ISG |  | Total
Geographic Location |  |  |  |  |  |  |
Singapore | $ | 1,086.6 |  |  | $ | 704.2 |  |  | $ | 164.2 |  |  | $ | 1,955.0 |
Hong Kong | 847.9 |  |  | 496.5 |  |  | 144.7 |  |  | 1,489.1 |
United Kingdom | 488.5 |  |  | 319.8 |  |  | 138.2 |  |  | 946.5 |
United States | 398.5 |  |  | 339.2 |  |  | 125.0 |  |  | 862.7 |
Other | 216.7 |  |  | 211.5 |  |  | 196.8 |  |  | 625.0 |
Total | $ | 3,038.2 |  |  | $ | 2,071.2 |  |  | $ | 768.9 |  |  | $ | 5,878.3 |
Sales Channel |  |  |  |  |  |  |
Distributors | $ | 2,011.1 |  |  | $ | 1,066.4 |  |  | $ | 464.2 |  |  | $ | 3,541.7 |
OEM | 846.8 |  |  | 860.7 |  |  | 263.4 |  |  | 1,970.9 |
Electronic Manufacturing Service Providers | 180.3 |  |  | 144.1 |  |  | 41.3 |  |  | 365.7 |
Total | $ | 3,038.2 |  |  | $ | 2,071.2 |  |  | $ | 768.9 |  |  | $ | 5,878.3 |
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. The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. The Company’s consolidated assets are not specifically ascribed to its individual reportable segments. Rather, assets used in operations are generally shared across the Company’s operating and reportable segments. Property, plant and equipment, net by geographic location, are summarized as follows (in millions):
| As of December 31, |  |
| 2020 |  | 2019 |  |
United States | $ | 686.6 |  |  | $ | 616.7 |  |  |
South Korea | 455.5 |  |  | 485.4 |  |  |
Philippines | 386.6 |  |  | 433.5 |  |  |
China | 229.6 |  |  | 243.6 |  |  |
Japan | 209.3 |  |  | 218.1 |  |  |
Czech Republic | 216.1 |  |  | 213.4 |  |  |
Malaysia | 190.2 |  |  | 204.4 |  |  |
Other | 138.4 |  |  | 176.5 |  |  |
| $ | 2,512.3 |  |  | $ | 2,591.6 |  |  |
The following table illustrates the product technologies under each of the Company's reportable segments 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.
PSG |  | ASG |  | ISG
Analog products |  | Analog products |  | LSI products
Discrete products |  | ASIC products |  | Sensors
MOSFET products |  | Connectivity products |  |
Power Module products |  | ECL products |  |
Isolation products |  | Foundry products / services |  |
Memory products |  | Gate Driver products |  |
Gate Driver products |  | LSI products |  |
Standard Logic products |  | Standard Logic products |  |
WBG products |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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