Revenue and Segment Information (Notes)

9 Months Ended

Sep. 27, 2019

Segment Reporting [Abstract]

Revenue and Segment Information

Note 2: Revenue and Segment Information

The Company is organized into three operating and reporting segments consisting of PSG, ASG and ISG. 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.

Revenue and gross profit for the Company’s operating and reporting segments were as follows (in millions):

	PSG		ASG		ISG		Total
For the quarter ended September 27, 2019:
Revenue from external customers	$	687.9	$	508.9	$	185.0	$	1,381.8
Gross profit	$	226.7	$	207.7	$	67.6	$	502.0
For the quarter ended September 28, 2018:
Revenue from external customers	$	810.2	$	531.7	$	199.8	$	1,541.7
Gross profit	$	297.9	$	224.3	$	80.7	$	602.9
For the nine months ended September 27, 2019:
Revenue from external customers	$	2,093.0	$	1,465.0	$	558.1	$	4,116.1
Gross profit	$	731.4	$	592.5	$	208.4	$	1,532.3
For the nine months ended September 28, 2018:
Revenue from external customers	$	2,251.0	$	1,541.1	$	583.1	$	4,375.2
Gross profit	$	804.2	$	650.4	$	245.0	$	1,699.6

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):

	Quarters Ended				Nine Months Ended
	September 27, 2019		September 28, 2018		September 27, 2019		September 28, 2018
Gross profit for reporting segments	$	502.0	$	602.9	$	1,532.3	$	1,699.6
Less: Unallocated manufacturing costs	(26.8)		(6.3)		(44.4)		(30.6)
Consolidated gross profit	$	475.2	$	596.6	$	1,487.9	$	1,669.0

Revenue for the Company's operating and reporting segments disaggregated into geographic locations and sales channels were as follows (in millions):

	Quarter Ended September 27, 2019
	PSG		ASG		ISG		Total
Geographic Location
Singapore	$	207.7	$	195.7	$	43.4	$	446.8
Hong Kong	216.2		105.8		34.9		356.9
United Kingdom	111.4		77.3		34.3		223.0
United States	92.2		73.4		27.7		193.3
Other	60.4		56.7		44.7		161.8
Total	$	687.9	$	508.9	$	185.0	$	1,381.8
Sales Channel
Distributors	$	430.6	$	248.8	$	113.7	$	793.1
OEM/ODM	206.9		228.2		61.5		496.6
Electronic Manufacturing Service Providers	50.4		31.9		9.8		92.1
Total	$	687.9	$	508.9	$	185.0	$	1,381.8
	Nine Months Ended September 27, 2019
	PSG		ASG		ISG		Total
Geographic Location
Singapore	$	646.0	$	479.2	$	126.7	$	1,251.9
Hong Kong	623.0		326.1		94.2		1,043.3
United Kingdom	355.2		233.2		110.9		699.3
United States	280.7		259.0		90.7		630.4
Other	188.1		167.5		135.6		491.2
Total	$	2,093.0	$	1,465.0	$	558.1	$	4,116.1
Sales Channel
Distributors	$	1,287.8	$	713.7	$	336.8	$	2,338.3
OEM/ODM	666.4		647.0		191.7		1,505.1
Electronic Manufacturing Service Providers	138.8		104.3		29.6		272.7
Total	$	2,093.0	$	1,465.0	$	558.1	$	4,116.1

	Quarter Ended September 28, 2018
	PSG		ASG		ISG		Total
Geographic Location
Singapore	$	332.8	$	191.7	$	48.6	$	573.1
Hong Kong	201.9		124.1		35.0		361.0
United Kingdom	124.9		81.9		34.8		241.6
United States	102.3		87.8		31.5		221.6
Other	48.3		46.2		49.9		144.4
Total	$	810.2	$	531.7	$	199.8	$	1,541.7
Sales Channel
Distributors	$	565.1	$	280.4	$	122.2	$	967.7
OEM/ODM	198.6		213.1		65.1		476.8
Electronic Manufacturing Service Providers	46.5		38.2		12.5		97.2
Total	$	810.2	$	531.7	$	199.8	$	1,541.7
	Nine Months Ended September 28, 2018
	PSG		ASG		ISG		Total
Geographic Location
Singapore	$	805.3	$	510.7	$	123.8	$	1,439.8
Hong Kong	636.5		379.7		110.6		1,126.8
United Kingdom	368.0		243.4		106.2		717.6
United States	295.0		251.9		91.4		638.3
Other	146.2		155.4		151.1		452.7
Total	$	2,251.0	$	1,541.1	$	583.1	$	4,375.2
Sales Channel
Distributors	$	1,499.7	$	792.0	$	352.4	$	2,644.1
OEM/ODM	616.5		640.7		198.6		1,455.8
Electronic Manufacturing Service Providers	134.8		108.4		32.1		275.3
Total	$	2,251.0	$	1,541.1	$	583.1	$	4,375.2

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’s consolidated assets are not specifically ascribed to its individual reporting segments. Rather, assets used in operations are generally shared across the Company’s operating and reporting segments.

Property, plant and equipment, net by geographic location, is summarized as follows (in millions):

	As of
	September 27, 2019		December 31, 2018
United States	$	608.3	$	616.9
Korea	460.7		383.1
Philippines	443.6		474.5
China	244.1		248.4
Czech Republic	231.3		194.5
Japan	220.7		205.0
Malaysia	212.6		229.1
Other	180.8		198.1
Total	$	2,602.1	$	2,549.6