v3.25.1
Segments and Revenue
 3 Months Ended
Apr. 04, 2025
Segment Reporting [Abstract]  
Segments and Revenue
Note 2: Segments and Revenue

Segments
The Company is organized into three operating and reportable segments consisting of PSG, AMG and ISG. These segments represent management's view of the business for which separate financial information is available and evaluated regularly by the Chief Operating Decision Maker ("CODM"), which is the Company’s Chief Executive Officer. The CODM uses segment gross profit for evaluating product pricing, factory utilization, allocation of capital and the assessment of segment profitability.

Revenue and gross profit for the operating and reportable segments were as follows (in millions):
PSGAMGISGTotal
For the quarter ended April 4, 2025:
Revenue from external customers$645.1 $566.4 $234.2 $1,445.7 
Cost of revenue521.9 265.5 364.5 1,151.9 
Segment gross profit (loss)$123.2 $300.9 $(130.3)$293.8 
For the quarter ended March 29, 2024:
Revenue from external customers$874.2 $697.0 $291.5 $1,862.7 
Cost of revenue508.8 358.2 142.1 1,009.1 
Segment gross profit$365.4 $338.8 $149.4 $853.6 

The Company had one customer, a distributor, whose revenue accounted for approximately 10% of total revenue for each of the quarters ended April 4, 2025 and March 29, 2024. No single customer accounted for more than 10% of the Company's accounts
receivable balance as of April 4, 2025, and one customer, a distributor, had an accounts receivable concentration of 13% as of December 31, 2024.

Revenue for the operating and reportable segments disaggregated into geographic locations based on sales billed from the respective country and sales channel was as follows (in millions):
Quarter Ended April 4, 2025
PSGAMGISGTotal
Geographic Location:
Hong Kong$165.1 $143.4 $61.6 $370.1 
Singapore140.4 114.2 19.2 273.8 
United Kingdom165.0 122.5 80.0 367.5 
United States123.0 142.0 27.6 292.6 
Other51.6 44.3 45.8 141.7 
Total$645.1 $566.4 $234.2 $1,445.7 
Sales Channel:
Distributors$335.6 $276.1 $97.4 $709.1 
Direct customers309.5 290.3 136.8 736.6 
Total$645.1 $566.4 $234.2 $1,445.7 

Quarter Ended March 29, 2024
PSGAMGISGTotal
Geographic Location:
Hong Kong$203.4 $149.7 $52.3 $405.4 
Singapore206.7 186.1 40.4 433.2 
United Kingdom202.5 133.8 107.7 444.0 
United States205.3 159.5 54.2 419.0 
Other56.3 67.9 36.9 161.1 
Total$874.2 $697.0 $291.5 $1,862.7 
Sales Channel:
Distributors$450.4 $343.6 $112.0 $906.0 
Direct customers423.8 353.4 179.5 956.7 
Total$874.2 $697.0 $291.5 $1,862.7 

The Company operates in various geographic locations. Sales to external customers have little correlation to where products are manufactured or the location of the end-customer. It is, therefore, not meaningful to present operating profit by geographical location.

The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. The consolidated assets used in manufacturing are generally shared and are not specifically ascribed to operating and reportable segments.
Property, plant and equipment, net by geographic location, is summarized below (in millions):
As of
April 4, 2025December 31, 2024
South Korea$1,248.0 $1,423.8 
United States1,214.0 1,410.8 
Czech Republic517.4 612.3 
China213.8 228.8 
Philippines192.5 208.1 
Malaysia175.4 183.1 
Vietnam151.0 155.3 
Other128.4 139.2 
Total$3,840.5 $4,361.4 

Revenue
The Company's revenue derives primarily from product sales and to a much lesser extent from manufacturing services and product development agreements. For the quarters ended April 4, 2025 and March 29, 2024, revenue recognized from product sales as a percentage of total revenue was approximately 99% and 97%, respectively, and revenue recognized from manufacturing services and product development agreements was approximately 1% and 3%, respectively.

Revenue disaggregated by end-markets and product technologies was as follows (in millions):
Quarters Ended
April 4, 2025March 29, 2024
End-Markets:
Automotive$761.9 $1,017.2 
Industrial400.0 476.1 
Other*283.8 369.4 
Total$1,445.7 $1,862.7 
* Other primarily includes the end-markets of computing, consumer, networking and communications.
Product Technologies:
Intelligent Power$702.2 $953.4 
Intelligent Sensing299.9 362.9 
Other443.6 546.4 
Total$1,445.7 $1,862.7 

Remaining Performance Obligations
A portion of the Company's orders are firm commitments that are non-cancellable, including certain orders or contracts with a duration of less than one year. Certain of the Company's customer contracts are multi-year agreements that include committed amounts ("Long-term Supply Agreements" or "LTSAs") for which the remaining performance obligations as of April 4, 2025 were approximately $10.6 billion (excluding the remaining performance obligations for contracts having a duration of one year or less). If products are shipped according to the terms of these contracts, the Company expects to recognize approximately 31% of this amount as revenue over the next 12 months. Total revenue estimates are based on negotiated contract prices and demand quantities, and could be influenced by risks and uncertainties, including manufacturing or supply chain constraints, modifications to customer agreements, and regulatory changes, among other factors. The timing, pricing or amounts of products delivered under LTSAs may be modified or canceled in certain circumstances, and the actual revenue recognized for the remaining performance obligations in future periods may significantly fluctuate from current estimates.
Certain LTSAs include non-cancellable capacity payments from the customer, which are generally due within 30 days of the agreement. These payments reserve production availability or are prepayments for the same purpose and are not recognized as revenue until the performance obligations are satisfied. Payments received in advance of the satisfaction of performance obligations are recorded as contract liabilities. The Company fulfilled certain performance obligations and recognized revenue of $24.0 million and $12.1 million for the quarters ended April 4, 2025 and March 29, 2024, respectively, related to contract liabilities outstanding as of December 31, 2024 and 2023, respectively.

Contract Balances
Contract assets and contract liabilities were as follows (in millions):
As of
April 4, 2025December 31, 2024
Contract assets included in:
Other current assets$28.0 $39.9 
Contract liabilities included in:
Accrued expenses and other current liabilities$112.7 $98.2 
Other long-term liabilities97.3 120.9 
Total$210.0 $219.1