Operating Segments and Geographic Information

3 Months Ended

Mar. 29, 2015

Operating Segments and Geographic Information

Note 12 – Segments and Geographic Information

We changed our reportable segments effective in the first quarter of fiscal year 2015 to reflect changes in the way we currently manage the business. All periods presented have been revised accordingly to reflect the new reportable segments.

The Analog Power and Signal Solutions segment (APSS) contains our mobile solutions, power conversion and motion tracking operating segments. This segment focuses on developing innovative analog solutions including power management, sensor and signal path applications. The Switching Power Solutions segment (SPS) contains our low and high voltage switch operating segments, integrated power modules, as well as our automotive and cloud operating segments. This segment provides a wide range of highly efficient discrete and integrated power management solutions across a broad range of end markets. The Standard Products Group (SPG) includes a broad portfolio of standard discrete, analog, logic and optoelectronic products.

In addition to the operating segments mentioned above, we also operate global operations, sales and marketing, information systems, finance and administration groups that are led by vice presidents who report to the Chief Executive Officer. Also, only direct SG&A and R&D spending by the segments is included in the calculation of their operating income. All other corporate level SG&A and R&D spending is included in the corporate category. We do not allocate income taxes or interest expense to our operating segments as the operating segments are principally evaluated on operating profit before interest and taxes.

We do not specifically identify and allocate all assets by operating segment. It is our policy to fully allocate depreciation and amortization, with the exception of accelerated depreciation related to restructuring activities, to our operating segments. Operating segments do not sell products to each other, and accordingly, there are no inter-segment revenues to be reported. The accounting policies for segment reporting are the same as for the company as a whole.

The following table presents selected statement of operations information on reportable segments for the three months ended March 29, 2015 and March 30, 2014.

	Three Months Ended
	March 29, 2015			March 30, 2014
	(In millions)
Revenue and operating income:
SPS
Total revenue	$	211.2		$	203.4
Operating income		42.8			37.1
APSS
Total revenue		96.3			95.2
Operating income		11.5			8.4
SPG
Total revenue		48.2			45.5
Operating income		11.2			9.1
Corporate
Restructuring, impairments, and other costs		(4.7	)		(6.1	)
Accelerated depreciation on assets related to factory closure		(4.5	)		—
Selling, general and administrative expense		(46.6	)		(48.8	)
Charge for litigation		—			(4.4	)
Corporate research and development expense		(3.5	)		(2.4	)
Total consolidated
Total revenue	$	355.7		$	344.1
Operating income (loss)	$	6.2		$	(7.1	)
Other expense, net	$	1.2		$	1.1
Income (loss) before income taxes	$	5.0		$	(8.2	)