Segment Information and Net Sales

3 Months Ended

Mar. 31, 2020

NOTE 7 – 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 the same customer type. Our primary operations include operations in Asia, North America and Europe. During the three months ended March 31, 2020 and 2019, no customer accounted for 10% or more of our revenue. No customer accounted for 10% or more of our outstanding accounts receivable at any point in the periods presented in this report.

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

As of and for the
Three Months Ended March 31, 2020	Asia			North America			Europe			Consolidated
Total sales	$	301,863		$	168,172		$	59,001		$	529,036
Intercompany elimination		(116,921	)		(104,464	)		(26,934	)		(248,319	)
Net sales	$	184,942		$	63,708		$	32,067		$	280,717

Property, plant and equipment, net	$	364,624		$	24,110		$	67,388		$	456,122
Total assets		1,208,572			197,178			214,516		$	1,620,266

As of and for the
Three Months Ended March 31, 2019	Asia			North America			Europe			Consolidated
Total sales	$	273,900		$	101,280		$	51,052		$	426,232
Intercompany elimination		(73,597	)		(37,916	)		(12,426	)		(123,939	)
Net sales	$	200,303		$	63,364		$	38,626		$	302,293

Property, plant and equipment, net	$	387,264		$	28,402		$	25,549		$	441,215
Total assets	$	1,163,989		$	222,696		$	226,313		$	1,612,998

Disaggregation of Net Sales. We disaggregate net sales 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 deliver our products to customers around the world for use in 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 revenue for the Company disaggregated into geographic locations based on shipment and by type (direct sales or Distributor) for the three months ended March 31, 2020 and 2019:

	Three Months Ended
Net Sales by Region	March 31, 2020		March 31, 2019
Asia	$	210,805	$	224,289
Europe		46,931		38,394
Americas		22,981		39,610
Total net sales	$	280,717	$	302,293

Net Sales by Type
Direct sales	$	99,544	$	86,358
Distributor sales		181,173		215,935
Total net sales	$	280,717	$	302,293

Revenue from products shipped to China was $138.9 million and $151.5 million for the three months ended March 31, 2020 and 2019, respectively.