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Revenue and Segment Information
 12 Months Ended
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):
PSGASGISGTotal
For year ended December 31, 2020:
Revenue from external customers$2,606.1 $1,910.4 $738.5 $5,255.0 
Segment gross profit801.7 730.5 237.7 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 profit976.0 794.8 275.4 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 profit1,110.1 878.3 317.1 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,
202020192018
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
PSGASGISGTotal
Geographic Location
Singapore$978.0 $695.0 $126.5 $1,799.5 
Hong Kong723.2 410.6 177.8 1,311.6 
United Kingdom395.7 264.5 145.7 805.9 
United States282.8 282.0 163.8 728.6 
Other226.4 258.3 124.7 609.4 
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 
OEM673.6 794.6 297.5 1,765.7 
Electronic Manufacturing Service Providers156.1 129.4 34.2 319.7 
Total$2,606.1 $1,910.4 $738.5 $5,255.0 
Year Ended December 31, 2019
PSGASGISGTotal
Geographic Location
Singapore$864.7 $679.7 $168.7 $1,713.1 
Hong Kong843.5 436.8 137.0 1,417.3 
United Kingdom467.1 303.5 151.0 921.6 
United States356.3 332.6 121.4 810.3 
Other256.7 219.7 179.2 655.6 
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 
OEM857.5 860.3 258.8 1,976.6 
Electronic Manufacturing Service Providers190.2 140.5 37.5 368.2 
Total$2,788.3 $1,972.3 $757.3 $5,517.9 

Year Ended December 31, 2018
PSGASGISGTotal
Geographic Location
Singapore$1,086.6 $704.2 $164.2 $1,955.0 
Hong Kong847.9 496.5 144.7 1,489.1 
United Kingdom488.5 319.8 138.2 946.5 
United States398.5 339.2 125.0 862.7 
Other216.7 211.5 196.8 625.0 
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 
OEM846.8 860.7 263.4 1,970.9 
Electronic Manufacturing Service Providers180.3 144.1 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,
20202019
United States$686.6 $616.7 
South Korea455.5 485.4 
Philippines386.6 433.5 
China229.6 243.6 
Japan209.3 218.1 
Czech Republic216.1 213.4 
Malaysia190.2 204.4 
Other138.4 176.5 
$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.

PSGASGISG
Analog productsAnalog productsLSI products
Discrete productsASIC productsSensors
MOSFET productsConnectivity products
Power Module productsECL products
Isolation productsFoundry products / services
Memory productsGate Driver products
Gate Driver productsLSI products
Standard Logic productsStandard Logic products
WBG products