Segment Information

12 Months Ended

Jun. 29, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company reports in six segments which correspond to the way the Company manages its business and interacts with customers. These reportable segments, which correspond to operating segments include:

Power Management Devices (“PMD”) - The PMD segment provides high performance power MOSFETs

with the widest range of packages up to 250V within the power management semiconductor industry for a range of applications including power supply, data processing, telecommunications, industrial, and commercial battery-powered systems. Key products used by the PMD segment include Trench HEXFET®MOSFETs, Discrete HEXFET®MOSFETs, Dual HEXFET®MOSFETs, FETKY®s, and DirectFET®s.

Energy Saving Products (“ESP”) - The ESP segment provides integrated design platforms that enable our customers to add energy-conserving features to help achieve lower operating energy and manufacturing costs. The integrated design platforms incorporate silicon packaging technology to help improve system performance. The ESP segment’s primary market applications include motor control appliances, industrial automation, lighting and display, audio and video. The ESP segment’s key products include analog HVICs and IGBT platforms, digital control ICs and IRAM integrated power modules. The ESP segment’s iMotion platform targets the growing trend towards variable speed motors in the appliance market.

Automotive Products (“AP”) - The AP segment provides high performance and energy saving solutions for a broad variety of automotive systems, ranging from typical 12V power net applications up to 1200V hybrid electric vehicle applications. The Company's automotive expertise includes supplying products for various automotive applications including AC and DC motor drives of all power classes, actuator drivers, automotive lighting (such as high intensity discharge lamps), direct fuel injection for diesel and gasoline engines, hybrid electric vehicle power train and peripheral systems for micro, mild, full and plug-in hybrids for electric vehicles, as well as for body electronic systems like glow plugs, Positive Temperature Coefficient (“PTC”) heaters, electric power steering, fuel pumps, Heating Ventilation and Air Conditioning (“HVAC”) and rear wipers. The Company's automotive product designs are used in solutions, integrated circuits (“ASICs”) and standard parts (“ASSPs”) and generic high volume products for multiple original equipment manufacturer (“OEM”) platform usage. The AP segment's key products include HVICs, intelligent power switch ICs, power MOSFETs including DirectFET®, IGBTs, Diodes and advanced power modules.

Enterprise Power (“EP”) – The EP segment provides high performance analog and digital end-to-end power solutions for servers, storage, routers, switches, infrastructure equipment, graphic cards, and gaming consoles. IR offers a broad portfolio of power management system products that deliver benchmark power density, efficiency and performance. The EPBU segment's key products include CHiL digital PWM controllers, PowIRstages^TM, SupIRBuck^TM, DirectFET® discretes, iPOWIR® voltage regulators, and Low voltage IC's. The large and growing server market has placed an emphasis and premium on digital control, telemetry, power density, efficiency and performance. The Company sees this trend increasing in other EP segment target applications. The Company offers a broad portfolio of digital and analog power management solutions that deliver benchmark power density, efficiency and performance. The EP segment's key products include our DirectFET® discrete products, CHiL digital PWM controllers, power monitoring products, XPhase^®, SupIRBuck^TM, iPOWIR® voltage regulators, Low voltage ICs, and PowIRstages^TM.

HiRel - The HiRel segment provides high-reliability power components and sub-assemblies designed to address power management requirements in mission critical applications including satellites and space exploration vehicles, military hardware, and other high reliability applications such as commercial aircraft, undersea telecommunications, and oil drilling in heavy industry, as well as products used in biomedical applications.  Our HiRel segment has a legacy of more than thirty years of experience in many of these applications, has developed strategic relationships with major system integrators worldwide and has the knowledge, technology and processes required to meet the requirements of customers in the high-reliability markets.  The HiRel segment's key products include our RAD-Hard discretes, RAD-Hard ICs, power management modules, DC-DC converters, High Temperature converters, and Energy Storage Systems.

Intellectual Property (“IP”) - The IP segment includes revenues from the sale of the Company’s technologies and manufacturing process know-how, in addition to the operating results of the Company’s patent licensing and settlements of claims brought against third parties. The Company continues, from time to time, to seek opportunistic licensing arrangements that it believes are consistent with its business strategy.

The Company does not allocate assets, sales and marketing, information systems, finance and administrative costs and asset impairment, restructuring and related charges to the operating segments, as these are not meaningful statistics to the Chief Executive Officer ("CEO") in making resource allocation decisions or in evaluating performance of the operating segments. Because operating segments are generally defined by the products they design and sell, they do not make sales to each other.

The Company does not directly allocate assets to its operating segments, nor does the CEO evaluate operating segments using discrete asset information. However, depreciation and amortization related to the manufacturing of goods is included in gross profit for the segments as part of manufacturing overhead. Due to the Company’s methodology for cost build up at the product level, it is impractical to determine the amount of depreciation and amortization included in each segment’s gross profit.

The Company’s “Customer Segments” as referred to herein includes its PMD, ESP, AP, EP and HiRel reporting segments.

For the fiscal years ended June 29, 2014, June 30, 2013 and June 24, 2012, revenues and gross margin by reportable segments were as follows (in thousands, except percentages):

	June 29, 2014						June 30, 2013						June 24, 2012
Business Segment	Revenues		Percentage of Total		Gross Margin		Revenues		Percentage of Total		Gross Margin		Revenues		Percentage of Total		Gross Margin
PMD	$	411,967	37.2	%	31.4	%	$	367,762	37.6	%	21.7	%	$	367,913	35.0	%	22.8	%
ESP	209,450		18.9		31.1		176,386		18.1		15.3		243,340		23.2		34.9
AP	149,646		13.5		29.5		124,695		12.8		17.7		113,353		10.8		22.3
EP	133,947		12.1		41.1		116,302		11.9		32.5		132,164		12.6		34.7
HiRel	200,412		18.1		52.0		188,831		19.3		46.7		192,229		18.3		51.2
Customer segments total	1,105,422		99.9		36.0		973,976		99.7		26.2		1,048,999		99.8		32.3
IP	1,149		0.1		100.0		3,059		0.3		78.4		1,589		0.2		100.0
Consolidated total	$	1,106,571	100.0	%	36.1	%	$	977,035	100.0	%	26.3	%	$	1,050,588	100.0	%	32.4	%

Geographic information for the fiscal years ended June 29, 2014, June 30, 2013 and June 24, 2012 is presented below (in thousands):

	Fiscal Year Ended
	June 29, 2014		June 30, 2013		June 24, 2012
Revenues from Unaffiliated Customers
United States	$	251,810	$	229,092	$	231,497
Asia	646,102		562,886		613,706
Europe	207,510		181,998		203,796
Subtotal	1,105,422		973,976		1,048,999
Royalties (unallocated)	1,149		3,059		1,589
Total	$	1,106,571	$	977,035	$	1,050,588
Long-lived Assets
United States	$	200,653	$	239,240	$	268,664
Asia	101,794		95,564		79,249
Europe	133,294		147,622		178,294
Total	$	435,741	$	482,426	$	526,207

Revenues from unaffiliated customers are based on the location in which the sale originated. Long-lived assets include all long-term assets excluding long-term investments, restricted cash, long-term deferred income taxes, goodwill and acquisition‑related intangibles.

During the fiscal year ended June 29, 2014, June 30, 2013, and June 24, 2012, sales to two of the Company’s distribution customers, Weikeng International and Arrow Electronics, were approximately 14.3 percent and 10.7 percent, respectively, 12.8 percent and 10.4 percent, respectively, and 12.2 percent and 10.9 percent, respectively, of consolidated revenues.