v3.25.2
Segments and Revenue
 6 Months Ended
Jul. 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 July 4, 2025:
Revenue from external customers$698.2 $555.9 $214.6 $1,468.7 
Cost of revenue517.4 274.1 125.3 916.8 
Segment gross profit$180.8 $281.8 $89.3 $551.9 
For the quarter ended June 28, 2024:
Revenue from external customers$835.2 $647.8 $252.2 $1,735.2 
Cost of revenue486.4 325.9 138.9 951.2 
Segment gross profit$348.8 $321.9 $113.3 $784.0 
For the six months ended July 4, 2025:
Revenue from external customers$1,343.3 $1,122.3 $448.8 $2,914.4 
Cost of revenue1,039.3 539.6 489.8 2,068.7 
Segment gross profit (loss)$304.0 $582.7 $(41.0)$845.7 
For the six months ended June 28, 2024:
Revenue from external customers$1,709.5 $1,344.8 $543.6 $3,597.9 
Cost of revenue995.3 684.1 280.9 1,960.3 
Segment gross profit$714.2 $660.7 $262.7 $1,637.6 

The Company had one customer, a distributor, whose revenue accounted for approximately 12% of total revenue for the quarters ended July 4, 2025 and June 28, 2024 and approximately 11% of the total revenue for the six months ended July 4, 2025 and June 28, 2024 across all reportable segments. One customer, a distributor, accounted for approximately 10% of the Company's accounts receivable balance as of July 4, 2025, and one customer, a distributor, had an accounts receivable concentration of 13% as of December 31, 2024 across all reportable segments.
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 July 4, 2025
PSGAMGISGTotal
Geographic Location:
Hong Kong$201.3 $157.9 $54.1 $413.3 
Singapore184.1 121.0 21.8 326.9 
United Kingdom145.9 102.8 78.7 327.4 
United States113.0 134.5 30.4 277.9 
Other53.9 39.7 29.6 123.2 
Total$698.2 $555.9 $214.6 $1,468.7 
Sales Channel:
Distributors$438.9 $303.3 $97.4 $839.6 
Direct customers259.3 252.6 117.2 629.1 
Total$698.2 $555.9 $214.6 $1,468.7 
Six Months Ended July 4, 2025
PSGAMGISGTotal
Geographic Location:
Hong Kong$366.4 $301.3 $115.7 $783.4 
Singapore324.5 235.2 41.0 600.7 
United Kingdom310.9 225.3 158.7 694.9 
United States236.0 276.5 58.0 570.5 
Other105.5 84.0 75.4 264.9 
Total$1,343.3 $1,122.3 $448.8 $2,914.4 
Sales Channel:
Distributors$774.5 $579.4 $194.8 $1,548.7 
Direct customers568.8 542.9 254.0 1,365.7 
Total$1,343.3 $1,122.3 $448.8 $2,914.4 
Quarter Ended June 28, 2024
PSGAMGISGTotal
Geographic Location:
Hong Kong$230.3 $162.2 $61.0 $453.5 
Singapore206.8 160.8 22.7 390.3 
United Kingdom187.7 122.7 103.4 413.8 
United States147.7 145.7 31.5 324.9 
Other62.7 56.4 33.6 152.7 
Total$835.2 $647.8 $252.2 $1,735.2 
Sales Channel:
Distributors$515.2 $348.4 $91.4 $955.0 
Direct customers320.0 299.4 160.8 780.2 
Total$835.2 $647.8 $252.2 $1,735.2 
Six Months Ended June 28, 2024
PSGAMGISGTotal
Geographic Location:
Hong Kong$433.6 $312.0 $113.3 $858.9 
Singapore413.5 346.9 63.1 823.5 
United Kingdom390.2 256.5 211.1 857.8 
United States353.1 305.1 85.7 743.9 
Other119.1 124.3 70.4 313.8 
Total$1,709.5 $1,344.8 $543.6 $3,597.9 
Sales Channel:
Distributors$965.6 $692.0 $203.4 $1,861.0 
Direct customers743.9 652.8 340.2 1,736.9 
Total$1,709.5 $1,344.8 $543.6 $3,597.9 

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
July 4, 2025December 31, 2024
South Korea$1,236.0 $1,423.8 
United States1,199.0 1,410.8 
Czech Republic457.7 612.3 
China204.6 228.8 
Philippines182.5 208.1 
Malaysia158.8 183.1 
Vietnam147.4 155.3 
Other128.9 139.2 
Total$3,714.9 $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 July 4, 2025 and June 28, 2024, revenue recognized from product sales as a percentage of total revenue was approximately 100% and 98%, respectively, and revenue recognized from manufacturing services and product development agreements was immaterial and approximately 2%, respectively.

Revenue disaggregated by end-markets and product technologies was as follows (in millions):
Quarters EndedSix Months Ended
July 4, 2025June 28, 2024July 4, 2025June 28, 2024
End-Markets:
Automotive$733.2 $906.9 $1,495.1 $1,924.1 
Industrial406.2 468.0 806.2 944.1 
Other*329.3 360.3 613.1 729.7 
Total$1,468.7 $1,735.2 $2,914.4 $3,597.9 
* Other primarily includes the end-markets of computing, consumer, networking and communications.
Product Technologies:
Intelligent Power$748.1 $898.0 $1,450.3 $1,851.4 
Intelligent Sensing275.9 310.8 575.8 673.7 
Other444.7 526.4 888.3 1,072.8 
Total$1,468.7 $1,735.2 $2,914.4 $3,597.9 

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 July 4, 2025 were approximately $9.6 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 36% 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 differ 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 $24.4 million and $23.3 million for the quarters ended July 4, 2025 and June 28, 2024, respectively, and $48.4 million and $35.4 million for the six months ended July 4, 2025 and June 28, 2024, respectively, related to contract liabilities outstanding as of the end of each respective prior year.

Contract Balances

Contract assets and contract liabilities were as follows (in millions):
As of
July 4, 2025December 31, 2024
Contract assets included in:
Other current assets$45.2 $39.9 
Contract liabilities included in:
Accrued expenses and other current liabilities$102.5 $98.2 
Other long-term liabilities82.0 120.9 
Total$184.5 $219.1