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Revenue and Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Revenue and Segment Information
Note 2: Revenue and Segment Information

The Company is organized into three operating and reportable segments consisting of PSG, ASG and ISG. These segments represent the Company's view of the business, and its gross profit is used to evaluate the performance of the Company's segments, the progress of major initiatives and the allocation of resources. Gross profit is exclusive of the amortization of acquisition-related intangible assets.

A significant portion of the Company’s orders are firm commitments that are non-cancellable, including certain orders or contracts with a duration of less than one year. Certain of the Company's customer contracts are multi-year agreements that include firmly committed amounts ("Long-term Supply Agreements" or "LTSA's") for which the remaining performance obligations as of September 30, 2022 were approximately $14.1 billion (excluding the remaining performance obligations for contracts having a duration of one year or less). The Company expects to recognize approximately 31% of this amount as revenue during the next twelve months upon shipment of products under these contracts. Total sales estimates are based on negotiated contract prices and demand quantities, and could be influenced by manufacturing issues, supply chain constraints, and modifications to customer agreements, among other things. Accordingly, the amount represented by remaining performance obligations may not be indicative of the actual revenue recognized for future periods.

A portion of our LTSA’s include non-cancellable capacity payments which secure production availability for our customers' orders or represent deposits, which prepay a portion of a given customer’s product obligation. During the quarter and nine months ended September 30, 2022, the Company recorded capacity payments of $67.8 million and $104.1 million, respectively, which were recorded within contract liabilities. As of September 30, 2022, $22.3 million of the capacity payments were recorded in accounts receivable. Capacity payments totaled $143.8 million as of September 30, 2022, of which $40.3 million and $103.5 million were recorded as current liabilities and other long-term liabilities, respectively. Contract assets were $13.1 million as of September 30, 2022. During the quarter and nine months ended September 30, 2022, $4.7 million and $13.8 million, respectively, was recognized as revenue for satisfying the associated performance obligations.

Revenue and gross profit for the Company’s operating and reportable segments are as follows (in millions):
PSGASGISGTotal
For the quarter ended September 30, 2022:
Revenue from external customers$1,116.1 $734.3 $342.2 $2,192.6 
Gross profit$508.5 $381.7 $168.1 $1,058.3 
For the quarter ended October 1, 2021:
Revenue from external customers$892.1 $613.5 $236.5 $1,742.1 
Gross profit$346.0 $280.1 $94.7 $720.8 
For the nine months ended September 30, 2022:
Revenue from external customers$3,159.8 $2,140.3 $922.5 $6,222.6 
Gross profit$1,494.4 $1,128.7 $433.6 $3,056.7 
For the nine months ended October 1, 2021:
Revenue from external customers$2,485.7 $1,752.6 $655.4 $4,893.7 
Gross profit$906.8 $739.2 $236.1 $1,882.1 

The Company had one customer, a distributor, whose revenue accounted for approximately 12% and 14% of the Company's total revenue for the quarters ended September 30, 2022 and October 1, 2021, respectively, and 12% and 13% of the Company's total revenue for the nine months ended September 30, 2022, and October 1, 2021.
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):

Quarter Ended September 30, 2022
PSGASGISGTotal
Geographic Location
Hong Kong$351.2 $192.7 $74.0 $617.9 
Singapore284.2 203.2 56.6 544.0 
United Kingdom192.3 113.7 66.5 372.5 
United States208.1 117.3 90.0 415.4 
Other80.3 107.4 55.1 242.8 
Total$1,116.1 $734.3 $342.2 $2,192.6 
Sales Channel
Distributors$726.0 $368.1 $187.4 $1,281.5 
Direct Customers390.1 366.2 154.8 911.1 
Total$1,116.1 $734.3 $342.2 $2,192.6 
Nine Months Ended September 30, 2022
PSGASGISGTotal
Geographic Location
Hong Kong$980.7 $548.4 $202.8 $1,731.9 
Singapore857.0 658.0 140.5 1,655.5 
United Kingdom561.9 329.6 186.2 1,077.7 
United States533.1 316.5 238.7 1,088.3 
Other227.1 287.8 154.3 669.2 
Total$3,159.8 $2,140.3 $922.5 $6,222.6 
Sales Channel
Distributors$2,056.3 $1,097.8 $502.4 $3,656.5 
Direct Customers1,103.5 1,042.5 420.1 2,566.1 
Total$3,159.8 $2,140.3 $922.5 $6,222.6 
Quarter Ended October 1, 2021
PSGASGISGTotal
Geographic Location
Singapore$285.4 $219.3 $39.3 $544.0 
Hong Kong281.8 152.2 53.0 487.0 
United Kingdom145.0 86.8 41.4 273.2 
United States115.8 74.3 48.6 238.7 
Other64.1 80.9 54.2 199.2 
Total$892.1 $613.5 $236.5 $1,742.1 
Sales Channel
Distributors$644.2 $355.6 $149.0 $1,148.8 
Direct Customers247.9 257.9 87.5 593.3 
Total$892.1 $613.5 $236.5 $1,742.1 
Nine Months Ended October 1, 2021
PSGASGISGTotal
Geographic Location
Singapore$833.0 $647.8 $105.2 $1,586.0 
Hong Kong738.9 397.0 142.6 1,278.5 
United Kingdom435.1 254.3 129.2 818.6 
United States299.2 220.9 128.5 648.6 
Other179.5 232.6 149.9 562.0 
Total$2,485.7 $1,752.6 $655.4 $4,893.7 
Sales Channel
Distributors$1,779.2 $988.8 $410.7 $3,178.7 
Direct Customers706.5 763.8 244.7 1,715.0 
Total$2,485.7 $1,752.6 $655.4 $4,893.7 

The Company operates in various geographic locations. Sales to external customers have little correlation with the location of end-customers. 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. Instead, assets used in operations are generally shared across the Company’s operating and reportable segments.
Property, plant and equipment, net by geographic location, is summarized as follows (in millions):
As of
September 30, 2022December 31, 2021
United States$822.8 $767.1 
South Korea737.6 492.8 
Philippines307.4 342.4 
Czech Republic248.3 214.2 
China204.5 216.8 
Japan135.6 198.6 
Malaysia181.0 175.3 
Other124.9 117.1 
Total$2,762.1 $2,524.3