Business Segments

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Business Segments

Business Segments, Customer Concentrations and Geographic Information

We have two reportable segments, packaging and test. Packaging and test are integral steps in the process of manufacturing semiconductor devices and our customers will engage with us for both packaging and test services, or just packaging or test services.

Packaging Services

We offer a broad range of package formats and services to our customers. The differentiating characteristics of package formats can include: (1) size, (2) number of electrical connections, (3) thermal and electrical characteristics, (4) number of chips incorporated, (5) types of interconnect technologies employed and (6) integration of active and passive components.

Test Services

We provide a complete range of semiconductor testing services including wafer testing or probe, various types of final testing, strip testing and complete end-of-line test services up to and including final shipping. Testing solutions vary depending upon the complexity of the device.

The accounting policies for segment reporting are the same as those for our Consolidated Financial Statements as a whole. We evaluate our operating segments based on gross profit and gross property, plant and equipment. We do not specifically identify and allocate total assets by operating segment. Summarized financial information concerning reportable segments is shown in the following table. The “other” column includes corporate adjustments, gross property, plant and equipment of our corporate and sales offices and capital additions not specifically allocated to one of our operating segments.

	Packaging		Test	Other		Total
	(In thousands)
Year Ended December 31, 2011
Net sales	$	2,493,283	282,942	134		$	2,776,359
Depreciation expense	$	218,352	83,386	307		$	302,045
Gross profit	$	425,878	65,719	(1,028	)	$	490,569
Gross property, plant and equipment	$	3,217,308	880,611	149,696		$	4,247,615
Capital additions	$	275,781	101,841	75,367		$	452,989
Year Ended December 31, 2010
Net sales	$	2,650,257	288,871	355		$	2,939,483
Depreciation expense	$	209,146	80,907	117		$	290,170
Gross profit	$	584,190	79,621	(55	)	$	663,756
Gross property, plant and equipment	$	3,018,216	800,125	143,221		$	3,961,562
Capital additions	$	316,397	97,122	90,944		$	504,463
Year Ended December 31, 2009
Net sales	$	1,933,600	245,237	272		$	2,179,109
Depreciation expense	$	184,637	88,558	138		$	273,333
Gross profit	$	429,295	57,652	(6,551	)	$	480,396
Gross property, plant and equipment	$	2,689,005	753,234	135,116		$	3,577,355
Capital additions	$	136,902	19,393	41,447		$	197,742

The following table presents net sales by country based on customer location:

	Net Sales
	2011		2010		2009
	(In thousands)
Japan	$	340,302	$	455,339	$	260,500
Singapore	539,467		643,496		482,333
Taiwan	119,334		177,505		138,793
Other foreign countries	689,643		772,337		543,658
Total foreign countries	1,688,746		2,048,677		1,425,284
United States	1,087,613		890,806		753,825
Total net sales	$	2,776,359	$	2,939,483	$	2,179,109

In 2011, one customer accounted for 17% of our consolidated net sales, representing approximately 15% of our packaging net sales and 30% of our test net sales. In 2011, another customer accounted for 11% of our consolidated net sales, substantially all of which were packaging net sales. No customer exceeded 10% of consolidated net sales in 2010. In 2009, one customer accounted for 12% of our consolidated net sales, representing approximately 11% of our packaging net sales and 22% of our test net sales.

The following table presents property, plant and equipment, net, based on the physical location of the asset:

	Property, Plant and Equipment, Net
	2011		2010
	(In thousands)
China	$	321,037	$	265,116
Japan	18,729		21,365
Korea	822,509		679,488
Philippines	213,377		231,795
Taiwan	230,975		287,439
Other foreign countries	138		90
Total foreign countries	1,606,765		1,485,293
United States	49,449		51,933
Total property, plant and equipment, net	$	1,656,214	$	1,537,226