Enterprise Wide Segment Information and Net Sales

9 Months Ended

Sep. 30, 2023

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, 2023, one customer accounted for approximately $64.8 million or 16.0% of our net sales. 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 nine months ended September 30, 2023, two customers accounted for $169.8 million, or 12.7%, and $153.6 million, or 11.5%, respectively, of our net sales. 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. 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.

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 the industrial, automotive, computing, consumer and communications 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:

For the Three Months Ended September 30, 2023	Asia			Americas			Europe			Consolidated
Total sales	$	379,181		$	291,359		$	97,625		$	768,165
Intercompany elimination		(169,629	)		(159,114	)		(34,775	)		(363,518	)
Net sales	$	209,552		$	132,245		$	62,850		$	404,647
For the 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
As of and for the
Nine Months Ended September 30, 2023	Asia			Americas			Europe			Consolidated
Total sales	$	1,206,777			955,944		$	315,063		$	2,477,784
Intercompany elimination		(539,598	)		(499,802	)		(99,344	)		(1,138,744	)
Net sales	$	667,179		$	456,142		$	215,719		$	1,339,040
Property, plant and equipment, net	$	537,040		$	86,951		$	112,135		$	736,126
Total assets	$	1,562,240		$	520,608		$	257,374		$	2,340,222
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

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

	For the Three Months Ended September 30,
Net Sales by Region	2023		2022
Asia	$	292,968	$	383,236
Europe		73,555		77,162
Americas		38,124		60,875
Total net sales	$	404,647	$	521,273
Net Sales by Type
Direct sales	$	137,661	$	153,732
Distributor sales		266,986		367,541
Total net sales	$	404,647	$	521,273
	For the Nine Months Ended September 30,
Net Sales by Region	2023		2022
Asia	$	930,891	$	1,120,107
Europe		242,783		209,965
Americas		165,366		174,296
Total net sales	$	1,339,040	$	1,504,368
Net Sales by Type
Direct sales	$	416,689	$	449,399
Distributor sales		922,351		1,054,969
Total net sales	$	1,339,040	$	1,504,368

Net sales from products shipped to China was $189.7 million and $246.2 million for the three months ended September 30, 2023 and 2022, respectively. Net sales from products shipped to China was $541.3 million and $717.2 million for the nine months ended September 30, 2023 and 2022, respectively.