Enterprise Wide Segment Information and Net Sales | NOTE 7 – Enterprise Wide Segment Information and Net Sales Segment Reporting. For financial reporting purposes, we operate in a single segment, standard semiconductor products, through our various manufacturing and distribution facilities. We aggregate our products because the products are similar and have similar economic characteristics, use similar production processes and share similar customer type. Our primary operations include operations in Asia, the Americas and Europe. During the three months ended September 30, 2022, two customers accounted for $ 58.7 million, or 11.3 %, and $ 56.4 million, or 10.8 %, respectively, of our net sales. During the three months ended September 30, 2021, one customer accounted for 10.0 % or $ 44.8 million of our net sales. During the nine months ended September 30, 2022, one customer accounted for $ 156.0 million, or 10.4 %, of our net sales. All customers that accounted for 10% or more of our net sales during any period presented in this Quarterly Report on Form 10-Q, are broad-based global distributors that sell to thousands of different end users. No customer accounted for 10 % or greater of our net sales during any other period presented in this Quarterly Report on Form 10-Q, and no customer accounted for 10% or more of our outstanding accounts receivable at any point in the periods presented in this Quarterly Report on Form 10-Q. Disaggregation of Net Sales. We disaggregate net sales with customers into direct sales and distribution sales (“Distributors”) and by geographic area. Direct sales customers consist of those customers using our product in their manufacturing process, and Distributors are those customers who resell our products to third parties. We deliver our products to customers around the world for use in consumer electronics, computing, communications, industrial and automotive markets. Further, most of our contracts are fixed-price arrangements, and are short term in nature, ranging from days to several months. The tables below set forth net sales based on the location of the subsidiary producing the net sale: Three Months Ended September 30, 2022 Asia Americas Europe Consolidated Total sales $ 473,454 $ 373,663 $ 98,100 $ 945,217 Intercompany elimination ( 201,487 ) ( 189,643 ) ( 32,814 ) ( 423,944 ) Net sales $ 271,967 $ 184,020 $ 65,286 $ 521,273 Three Months Ended September 30, 2021 Asia Americas Europe Consolidated Total sales $ 503,968 $ 300,055 $ 74,335 $ 878,358 Intercompany elimination ( 196,858 ) ( 180,396 ) ( 29,682 ) ( 406,936 ) Net sales $ 307,110 $ 119,659 $ 44,653 $ 471,422 As of and for the Nine Months Ended September 30, 2022 Asia Americas Europe Consolidated Total sales $ 1,388,493 $ 981,317 $ 262,556 $ 2,632,366 Intercompany elimination ( 525,306 ) ( 513,814 ) ( 88,878 ) ( 1,127,998 ) Net sales $ 863,187 $ 467,503 $ 173,678 $ 1,504,368 Property, plant and equipment, net $ 500,534 $ 96,691 $ 101,227 $ 698,452 Total assets $ 1,614,300 $ 509,439 $ 238,825 $ 2,362,564 As of and for the Nine Months Ended September 30, 2021 Asia Americas Europe Consolidated Total sales $ 1,458,120 $ 808,607 $ 202,107 $ 2,468,834 Intercompany elimination ( 552,212 ) ( 508,543 ) ( 83,088 ) ( 1,143,843 ) Net sales $ 905,908 $ 300,064 $ 119,019 $ 1,324,991 Property, plant and equipment, net $ 421,254 $ 23,792 $ 95,474 $ 540,520 Total assets $ 1,456,670 $ 345,471 $ 239,768 $ 2,041,909 The tables below set forth net sales for the Company disaggregated into geographic locations based on shipment and by type (direct sales or Distributor ): Three Months Ended Net Sales by Region 2022 2021 Asia $ 383,236 $ 376,062 Europe 77,162 58,202 Americas 60,875 37,158 Total net sales $ 521,273 $ 471,422 Net Sales by Type Direct sales $ 153,732 $ 159,247 Distributor sales 367,541 312,175 Total net sales $ 521,273 $ 471,422 Nine Months Ended Net Sales by Region 2022 2021 Asia $ 1,120,107 $ 1,064,001 Europe 209,965 160,643 Americas 174,296 100,347 Total net sales $ 1,504,368 $ 1,324,991 Net Sales by Type Direct sales $ 449,399 $ 458,017 Distributor sales 1,054,969 866,974 Total net sales $ 1,504,368 $ 1,324,991 Net sales from products shipped to China was $ 246.2 million and $ 244.2 million for the three months ended September 30, 2022 and 2021, respectively. Net sales from products shipped to China was $ 717.2 million and $ 695.8 million for the nine months ended September 30, 2022 and 2021, respectively. |