Enterprise Wide Segment Information and Net Sales

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Enterprise Wide Segment Information and Net Sales

NOTE 7 – Enterprise Wide Segment Information and Net Sales

Segment Reporting. For financial reporting purposes, we operate in a single segment, standard semiconductor products, through our various manufacturing and distribution facilities. We aggregate our products because the products are similar and have similar economic characteristics, use similar production processes and share similar customer type. Our primary operations include operations in Asia, the Americas and Europe. During the three months ended September 30, 2022, two customers accounted for $58.7 million, or 11.3%, and $56.4 million, or 10.8%, respectively, of our net sales. During the three months ended September 30, 2021, one customer accounted for 10.0% or $44.8 million of our net sales. During the nine months ended September 30, 2022, one customer accounted for $156.0 million, or 10.4%, of our net sales. All customers that accounted for 10% or more of our net sales during any period presented in this Quarterly Report on Form 10-Q, are broad-based global distributors that sell to thousands of different end users. No customer accounted for 10% or greater of our net sales during any other period presented in this Quarterly Report on Form 10-Q, and no customer accounted for 10% or more of our outstanding accounts receivable at any point in the periods presented in this Quarterly Report on Form 10-Q.

Disaggregation of Net Sales. We disaggregate net sales with customers into direct sales and distribution sales (“Distributors”) and by geographic area. Direct sales customers consist of those customers using our product in their manufacturing process, and Distributors are those customers who resell our products to third parties. We deliver our products to customers around the world for use in consumer electronics, computing, communications, industrial and automotive markets. Further, most of our contracts are fixed-price arrangements, and are short term in nature, ranging from days to several months. The tables below set forth net sales based on the location of the subsidiary producing the net sale:

Three Months Ended September 30, 2022	Asia			Americas			Europe			Consolidated
Total sales	$	473,454		$	373,663		$	98,100		$	945,217
Intercompany elimination		(201,487	)		(189,643	)		(32,814	)		(423,944	)
Net sales	$	271,967		$	184,020		$	65,286		$	521,273
Three Months Ended September 30, 2021	Asia			Americas			Europe			Consolidated
Total sales	$	503,968		$	300,055		$	74,335		$	878,358
Intercompany elimination		(196,858	)		(180,396	)		(29,682	)		(406,936	)
Net sales	$	307,110		$	119,659		$	44,653		$	471,422
As of and for the
Nine Months Ended September 30, 2022	Asia			Americas			Europe			Consolidated
Total sales	$	1,388,493		$	981,317		$	262,556		$	2,632,366
Intercompany elimination		(525,306	)		(513,814	)		(88,878	)		(1,127,998	)
Net sales	$	863,187		$	467,503		$	173,678		$	1,504,368
Property, plant and equipment, net	$	500,534		$	96,691		$	101,227		$	698,452
Total assets	$	1,614,300		$	509,439		$	238,825		$	2,362,564
As of and for the
Nine Months Ended September 30, 2021	Asia			Americas			Europe			Consolidated
Total sales	$	1,458,120		$	808,607		$	202,107		$	2,468,834
Intercompany elimination		(552,212	)		(508,543	)		(83,088	)		(1,143,843	)
Net sales	$	905,908		$	300,064		$	119,019		$	1,324,991
Property, plant and equipment, net	$	421,254		$	23,792		$	95,474		$	540,520
Total assets	$	1,456,670		$	345,471		$	239,768		$	2,041,909

The tables below set forth net sales for the Company disaggregated into geographic locations based on shipment and by type (direct sales or Distributor):

	Three Months Ended
Net Sales by Region	2022		2021
Asia	$	383,236	$	376,062
Europe		77,162		58,202
Americas		60,875		37,158
Total net sales	$	521,273	$	471,422
Net Sales by Type
Direct sales	$	153,732	$	159,247
Distributor sales		367,541		312,175
Total net sales	$	521,273	$	471,422
	Nine Months Ended
Net Sales by Region	2022		2021
Asia	$	1,120,107	$	1,064,001
Europe		209,965		160,643
Americas		174,296		100,347
Total net sales	$	1,504,368	$	1,324,991
Net Sales by Type
Direct sales	$	449,399	$	458,017
Distributor sales		1,054,969		866,974
Total net sales	$	1,504,368	$	1,324,991

Net sales from products shipped to China was $246.2 million and $244.2 million for the three months ended September 30, 2022 and 2021, respectively. Net sales from products shipped to China was $717.2 million and $695.8 million for the nine months ended September 30, 2022 and 2021, respectively.