Segment Information, Revenue and Enterprise-Wide Disclosures

12 Months Ended

Dec. 31, 2018

Segment Information, Revenue and Enterprise-Wide Disclosures

NOTE 15 – SEGMENT INFORMATION, REVENUE AND ENTERPRISE-WIDE DISCLOSURES

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 the same customer type. Our primary operations include operations in Asia, North America and Europe. The accounting policies of the operating entities are the same as those described in the summary of significant accounting policies.

The tables below set forth net sales based on the location of the subsidiary producing the net sale:

2018	Asia			North America			Europe			Consolidated
Total sales	$	1,069,068		$	179,459		$	195,406		$	1,443,933
Inter-company sales		(150,421	)		(24,322	)		(55,201	)		(229,944	)
Net sales	$	918,647		$	155,137		$	140,205		$	1,213,989

Property, plant and equipment	$	392,445		$	30,507		$	23,883		$	446,835
Assets	$	1,095,037		$	240,540		$	190,794		$	1,526,371

2017	Asia			North America			Europe			Consolidated
Total sales	$	968,720		$	171,964		$	175,004		$	1,315,688
Inter-company sales		(128,924	)		(71,608	)		(60,952	)		(261,484	)
Net sales	$	839,796		$	100,356		$	114,052		$	1,054,204

Property, plant and equipment	$	390,850		$	44,523		$	23,796		$	459,169
Assets	$	1,061,686		$	230,997		$	195,990		$	1,488,673

2016	Asia			North America			Europe			Consolidated
Total sales	$	895,608		$	109,442		$	157,343		$	1,162,393
Inter-company sales		(137,959	)		(22,034	)		(60,238	)		(220,231	)
Net sales	$	757,649		$	87,408		$	97,105		$	942,162

Property, plant and equipment	$	329,587		$	57,145		$	15,256		$	401,988
Assets	$	948,923		$	400,472		$	179,157		$	1,528,552

Disaggregation of Revenue. We disaggregate revenue from contracts 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 sell our products to customers in multiple areas of the world including Asia, Europe, and North America. Across these regions, we sell products to end users in a variety of markets such as consumer electronics, computing, communications, industrial and automotive. 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 the amount of net sales by type, direct sales or Distributor and the location of the customer based on the location to where the products were shipped for the twelve months ended December 31, 2018, 2017 and 2016:

	Net Sales by Type for the Twelve Months Ended December 31,
	Direct Sales									Distributor
	2018			2017			2016			2018			2017			2016
China	$	226,360		$	220,390		$	216,240		$	436,265		$	372,737		$	331,808
United States		15,644			16,522			16,237			104,598			69,755			63,599
Korea		16,562			17,765			16,056			47,398			48,083			44,617
Germany		11,770			10,879			11,819			81,944			63,423			49,595
Singapore		2,150			873			943			66,003			57,697			47,521
Taiwan		2,846			6,327			8,442			73,498			61,042			50,646
All others ⁽¹⁾		71,665			61,699			53,210			57,286			47,012			31,429
Total	$	346,997		$	334,455		$	322,947		$	866,992		$	719,749		$	619,215

	Percent of Net Sales by Type for the Twelve Months Ended December 31,
	Direct Sales									Distributor
	2018			2017			2016			2018			2017			2016
China		65	%		66	%		67	%		50	%		52	%		54	%
United States		5	%		5	%		5	%		12	%		10	%		10	%
Korea		5	%		5	%		5	%		5	%		7	%		7	%
Germany		3	%		3	%		4	%		9	%		9	%		8	%
Singapore		1	%		-			-			8	%		8	%		8	%
Taiwan		1	%		2	%		3	%		8	%		8	%		8	%
All others ⁽¹⁾		21	%		19	%		16	%		8	%		6	%		5	%
Total		100	%		100	%		100	%		100	%		100	%		100	%

	Total Net Sales for the Twelve Months Ended December 31,
	Dollar									Percent of Net Sales
	2018			2017			2016			2018			2017			2016
China	$	662,625		$	593,127		$	548,048			55	%		56	%		58	%
United States		120,242			86,277			79,836			10	%		8	%		8	%
Korea		63,960			65,848			60,673			5	%		6	%		6	%
Germany		93,714			74,302			61,414			8	%		7	%		7	%
Singapore		68,153			58,570			48,464			6	%		6	%		5	%
Taiwan		76,344			67,369			59,088			6	%		6	%		6	%
All others ⁽¹⁾		128,951			108,711			84,639			10	%		11	%		10	%
Total	$	1,213,989		$	1,054,204		$	942,162			100	%		100	%		100	%

(1) Represents countries with less than 3% of the total net sales of each.

The tables below set forth a summary of the above data:

	2018		2017		2016
Direct Sales
Asia	$	292,459	$	285,610	$	274,432
Americas		26,296		23,696		21,101
Europe		28,242		25,149		27,414
Total		346,997		334,455		322,947

Distributor Sales
Asia		651,659		563,661		486,682
Americas		105,458		69,755		63,599
Europe		109,875		86,333		68,934
Total		866,992		719,749		619,215

Total Sales
Asia		944,118		849,271		761,114
Americas		131,754		93,451		84,700
Europe		138,117		111,482		96,348
Total	$	1,213,989	$	1,054,204	$	942,162

Major customers – During the twelve months ended December 31, 2018 and 2017, one customer, a broad-based global distributor that sells to thousands of different end users, accounted for 10.0% or $120.0 million and $101.7 million, respectively, of our revenue. No customer accounted for 10% or greater of our revenue during the twelve months ended December 31, 2016. No customer accounted for 10% or greater of our outstanding accounts receivable at December 31, 2018 or 2017.