Segment Information

The Chief Operating Decision Maker is the Company’s President and Chief Executive Officer.

During the first quarter of fiscal 2019, the Company reorganized its operating segment structure resulting in a change to the composition of its reportable segments. Prior to the reorganization, some product groups of the acquired GigPeak business were aggregated into the Communications segment while the rest were included in the Computing, Consumer and Industrial segment. As a result of the reorganization, the entire GigPeak business was aggregated to the Computing, Consumer and Industrial segment. The segment financial results for the three and six months ended October 1, 2017 have been adjusted to conform to the new reportable segment structure effective April 2, 2018.

The Company's reportable segments include the following:


•	Communications segment: includes clock and timing solutions, radio frequency (RF), flow-control management such as multi-port products, telecommunication interface, high-speed static random access memory, first in and first out memory, digital logic and frequency control solutions and Serial RapidIO® switching solutions.


•	Computing, Consumer and Industrial segment: includes clock generation and distribution products, high-performance server memory interfaces, wireless power, PCI Express®, signal integrity, power management solutions, signal integrity products, optical interconnect, video distribution and contribution solutions and sensing products for mobile, automotive and industrial solutions.

The tables below provide information about these segments:



Revenues by segment	Three Months Ended				Six Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
(in thousands)			(1)				(1)
Communications	$	73,384	$	61,957	$	140,470	$	118,505
Computing, Consumer and Industrial	162,100		142,441		323,530		282,606
Total revenues	$	235,484	$	204,398	$	464,000	$	401,111



Income by segment	Three Months Ended						Six Months Ended
	September 30, 2018			October 1, 2017			September 30, 2018			October 1, 2017
(in thousands)				(1)						(1)
Communications	$	35,118		$	24,284		$	66,495		$	44,920
Computing, Consumer and Industrial	36,974			28,782			73,359			57,829
Unallocated expenses:
Amortization of intangible assets	(9,365		)	(8,963		)	(18,699		)	(19,804		)
Inventory fair market value adjustment	—			(2,011		)	(790		)	(6,092		)
Assets impairment and other	—			(917		)	—			(917		)
Stock-based compensation	(15,637		)	(12,949		)	(30,700		)	(24,769		)
Severance, retention and facility closure costs	(1,226		)	(4,179		)	(1,714		)	(4,832		)
Acquisition-related costs and other	—			—			—			(2,225		)
Merger-related expenses	(3,884		)	—			(3,884		)	—
Other-than-temporary impairment loss on investment	—			—			(2,000		)	—
Interest expense and other, net	(5,266		)	(5,398		)	(11,489		)	(9,729		)
Income before income taxes	$	36,714		$	18,649		$	70,578		$	34,381
(1) Prior period numbers have been adjusted to conform to the current organizational structure.

The Company does not allocate goodwill and intangible assets impairment charge, IPR&D, severance, acquisition-related costs, stock-based compensation, interest income and other, and interest expense to its segments. In addition, the Company does not allocate assets to its segments. The Company excludes these items consistent with the manner in which it internally evaluates its results of operations.

Revenues from unaffiliated customers by geographic area, based on the customers' shipment locations, were as follows:



	Three Months Ended				Six Months Ended
(in thousands)	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
Hong Kong	$	89,796	$	70,810	$	170,471	$	134,698
Rest of Asia Pacific	64,458		62,781		131,750		127,317
Europe	31,219		32,024		60,973		56,356
Korea	25,246		21,275		52,773		39,437
Americas (2)	24,765		17,508		48,033		43,303
Total revenues	$	235,484	$	204,398	$	464,000	$	401,111

(2) The revenues from the customers in the U.S. were $20.3 million and $14.8 million in the three months ended September 30, 2018 and October 1, 2017, respectively. The revenues from the customers in the U.S. were $40.6 million and $36.9 million in the six months ended September 30, 2018 and October 1, 2017, respectively.

The Company utilizes global and regional distributors around the world, that buy products directly from the Company on behalf of their customers. Two distributors, Uniquest and its affiliates and Avnet and its affiliates, accounted for 12% and 16%, respectively, of the Company's revenues in the three months ended September 30, 2018. Two distributors, Uniquest and its affiliates and Avnet and its affiliates, accounted for 13% and 15%, respectively, of the Company's revenues in the six months ended September 30, 2018. One distributor, Avnet and its affiliates accounted for 15% of the Company's revenues in the three months ended October 1, 2017. One distributor, Avnet and its affiliates accounted for 14% of the Company's revenues in the six months ended October 1, 2017.

One direct original equipment manufacturer (OEM) customer, SK Hynix, accounted for 10% of the Company's revenues in the six months ended September 30, 2018. One direct original equipment manufacturer (OEM) customer, Samsung Electronics, accounted for 10% of the Company's revenues in the three and six months ended October 1, 2017.

As of September 30, 2018, one distributor represented approximately 20% of the Company’s gross accounts receivable. As of April 1, 2018, one distributor represented approximately 15% of the Company’s gross accounts receivable.

The Company’s significant operations outside of the United States include test facilities in each of Malaysia and Germany, design centers in the U.S., Canada and China, and sales subsidiaries in APAC and Europe. The Company's net property, plant and equipment are summarized below by geographic area:



(in thousands)	September 30, 2018		April 1, 2018
United States	$	40,224	$	41,230
Malaysia	32,430		28,264
Germany	9,233		10,210
All other countries	7,099		7,141
Total property, plant and equipment, net	$	88,986	$	86,845