Segment Information

3 Months Ended

Mar. 30, 2014

Segment Information

Note 8 – Segment Information

Fairchild is currently organized onto three reportable segments. The organization is an application based structure which corresponds with the way the company manages the business. The majority of the company’s activities are aligned into two focus areas; MCCC, which focuses on mobile, computing and multimedia applications with typically lower power requirements, and the Power Conversion, Industrial, and Automotive (PCIA) business, which focuses on the higher power requirements for motor control solutions, power supplies, power conversion and automotive drive train applications. Each of these segments has a relatively small set of leading customers, common technology requirements and similar design cycles. The Standard Discrete and Standard Linear (SDT) business is managed separately as a third reportable segment.

The following table presents selected operating segment financial information for the three months ended March 30, 2014 and March 31, 2013.

	Three Months Ended
	March 30, 2014			March 31, 2013
	(In millions)
Revenue and Operating Income:
MCCC
Total revenue	$	130.1		$	135.2
Operating income		23.1			18.0
PCIA
Total revenue		182.0			174.6
Operating income		28.2			21.0
SDT
Total revenue		32.0			33.4
Operating income		4.3			3.2
Corporate
Restructuring, impairments, and other costs		(6.1	)		(1.2	)
Stock-based compensation expense		(7.8	)		(6.3	)
Selling, general and administrative expense		(44.4	)		(38.8	)
Charge for (release of) litigation		(4.4	)		12.6
Other (1)		—			(2.7	)
Total Consolidated
Total revenue	$	344.1		$	343.2
Operating income (loss)	$	(7.1	)	$	5.8
Other expense, net		1.1			4.6
Income (loss) before income taxes	$	(8.2	)	$	1.2

(1) Other consists primarily of accelerated depreciation on certain assets in our Salt Lake manufacturing facility. The company completed the closure of the 8 inch line at this facility as of Q4’13. The equipment is in the process of being transferred to other Fairchild locations. The depreciation that relates to the initial installation cost of this equipment has been accelerated as these costs are specific to its installation in Salt Lake. The depreciation was accelerated over an 11 month time period.

Both the first three months of 2014 and 2013 consist of 13 weeks.

MCCC revenue for the three months ended March 31, 2014 includes $2.7 million of Xsens revenue for the period from January 21, 2014 through March 30, 2014.

PCIA revenue for the three months ended March 31, 2013 includes $1.2 million of insurance proceeds related to business interruption claims for the company’s optoelectronics supply issues resulting from the Thailand floods in the fourth quarter of 2011.