OPERATING AND GEOGRAPHICAL SEGMENTS

12 Months Ended

Dec. 31, 2011

OPERATING AND GEOGRAPHICAL SEGMENTS

OPERATING AND GEOGRAPHICAL SEGMENTS

Note 14    OPERATING AND GEOGRAPHICAL SEGMENTS

        The Company designs, develops, manufactures and sells semiconductor integrated circuit products. The Company's segments represent management's view of the Company's businesses and how it allocates Company resources and measures performance of its major components. Each segment consists of product families with similar requirements for design, development and marketing. Each segment requires different design, development and marketing resources to produce and sell products. Atmel's four reportable segments are as follows:

• •

  Microcontrollers.  This segment includes Atmel's capacitive touch products, including maXTouch and QTouch, AVR 8-bit and 32-bit products, ARM-based products, and Atmel's 8051 8-bit products.

  •

  Nonvolatile Memories.  This segment includes serial interface electrically erasable programmable read-only memory ("SEEPROM"), serial and parallel interface Flash memory, and electrically erasable programmable read-only memory ("EEPROM") and erasable programmable ready-only memory ("EPROM") devices. This segment also includes products with military and aerospace applications.

  •

  Radio Frequency ("RF") and Automotive.  This segment includes automotive electronics, wireless and wired devices for industrial, consumer and automotive applications and foundry services for radio frequency products designed for mobile telecommunications markets.

  •

  Application Specific Integrated Circuit ("ASIC").  This segment includes custom application specific integrated circuits designed to meet specialized single-customer requirements for their high performance devices in a broad variety of specific applications, including products that provide hardware security for embedded digital systems, products with military and aerospace applications and ASSPs for space applications, power management and secure crypto memory products.

        The Company evaluates segment performance based on revenues and income or loss from operations excluding acquisition-related charges, restructuring charges, asset impairment charges and (gain) loss on sale of assets. Interest and other (expenses) income, net, foreign exchange gains and losses and income taxes are not measured by operating segment. Because the Company's segments reflect the manner in which management reviews its business, they necessarily involve subjective judgments that management believes are reasonable in light of the circumstances under which they are made. These judgments may change over time or may be modified to reflect new facts or circumstances. Segments may also be changed or modified to reflect products, technologies or applications that are newly created, or that change over time, or other business conditions that evolve, each of which may result in reassessing specific segments and the elements included within each of those segments. Recent events may affect the manner in which we present segments in the future.

        Segments are defined by the products they design and sell. They do not make sales to each other. The Company's net revenues and segment income (loss) from operations for each reportable segment for the years ended December 31, 2011, 2010 and 2009 are as follows:

• Information about Reportable Segments

	Micro- Controllers			Nonvolatile Memories		RF and Automotive			ASIC			Total
	(In thousands)
Year ended December 31, 2011
Net revenues from external customers	$	1,113,579		$	255,683	$	202,013		$	231,778		$	1,803,053
Segment income from operations		235,478			55,721		16,962			64,009		$	372,170
Year ended December 31, 2010
Net revenues from external customers	$	892,301		$	277,179	$	188,090		$	286,490		$	1,644,060
Segment income from operations		158,888			39,839		14,341			13,008		$	226,076
Year ended December 31, 2009
Net revenues from external customers	$	457,797		$	290,936	$	147,871		$	320,741		$	1,217,345
Segment (loss) income from operations		(1,741	)		10,255		(8,402	)		(22,038	)	$	(21,926	)

        The Company does not allocate assets by segment, as management does not use asset information to measure or evaluate a segment's performance.

• Reconciliation of Segment Information to Consolidated Statements of Operations

		Years Ended
		December 31, 2011			December 31, 2010			December 31, 2009
		(In thousands)
Total segment income (loss) from operations		$	372,170		$	226,076		$	(21,926	)
Unallocated amounts:
	Acquisition-related charges		(5,408	)		(1,600	)		(16,349	)
	Restructuring charges		(20,064	)		(5,253	)		(6,681	)
	Asset impairment charges		—			(11,922	)		(79,841	)
	Gain (loss) on sale of assets		35,310			(99,767	)		164
Consolidated income (loss) from operations		$	382,008		$	107,534		$	(124,633	)

        Geographic sources of revenues were as follows:

		Years Ended
		December 31, 2011		December 31, 2010		December 31, 2009
		(In thousands)
United States		$	249,887	$	260,091	$	209,494
Germany			237,777		207,305		167,808
France			31,231		55,107		73,926
Japan			57,376		46,671		35,691
China, including Hong Kong			531,561		489,480		342,172
Singapore			42,982		42,819		54,221
Taiwan			135,650		115,559		71,206
South Korea			223,967		143,213		46,220
Rest of Asia-Pacific			71,048		70,958		57,791
Rest of Europe			193,558		177,274		139,244
Rest of the World			28,016		35,583		19,572
	Total net revenues	$	1,803,053	$	1,644,060	$	1,217,345

        Net revenues are attributed to countries based on the locations to where the Company ships.

        No single customer accounted for more than 10% of net revenues in any of the years ended December 31, 2011, 2010 and 2009. Two distributors accounted for 15% and 14% of accounts receivable at December 31, 2011. Two distributors accounted for 14% and 12% of accounts receivable at December 31, 2010.

        Locations of long-lived assets as of December 31, 2011 and 2010 were as follows:

		December 31, 2011		December 31, 2010
		(In thousands)
United States		$	81,777	$	106,052
Philippines			71,332		65,049
Germany			20,681		18,963
France			30,277		30,674
Asia-Pacific			59,906		47,524
Rest of Europe			10,534		13,513
	Total	$	274,507	$	281,775

        Excluded from the table above are auction-rate securities of $2.3 million as of December 31, 2011 and 2010, which are included in other assets on the consolidated balance sheets. Also excluded from the table above as of December 31, 2011 and 2010 are goodwill of $67.7 million and $54.7 million, respectively, intangible assets, net of $21.0 million and $17.6 million, respectively and deferred income tax assets of $121.4 million and $140.6 million, respectively.