Investor Presentaiton
Notes to financial statements
1. Description of business, including segment and geographic area information
We design, make and sell semiconductors to electronics designers and manufacturers all over the world. For 2016, we have two
reportable segments, which are established along major categories of products as follows:
•
Analog consisting of the following product lines: High Volume Analog & Logic, Power Management, High Performance
Analog and Silicon Valley Analog.
Embedded Processing - consisting of the following product lines: Processors, Microcontrollers and Connectivity.
We report the results of our remaining business activities in Other. Other includes operating segments that do not meet the
quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments. Other
includes DLP® products, calculators, custom ASICS and royalties received from agreements involving license rights to our patent
portfolio.
In Other, we also include items that are not used in evaluating the results of or in allocating resources to our segments. Examples
of these items include Acquisition charges (see Note 13); restructuring charges (see Note 3); and certain corporate-level items,
such as litigation expenses, environmental costs, insurance settlements, and gains and losses from other activities, including asset
dispositions. We allocate the remainder of our expenses associated with corporate activities to our operating segments based on
specific methodologies, such as percentage of operating expenses or headcount.
Our centralized manufacturing and support organizations, such as facilities, procurement and logistics, provide support to our
operating segments, including those in Other. Costs incurred by these organizations, including depreciation, are charged to the
segments on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the
segments' results and, therefore, is not provided. The assets and liabilities associated with these organizations are included in
Other.
With the exception of goodwill, we do not identify or allocate assets by operating segment, nor does the chief operating decision
maker evaluate operating segments using discrete asset information. We have no material intersegment revenue. The accounting
policies of the segments are the same as those described below in the summary of significant accounting policies and practices.
Segment information
Revenue:
Analog.
Embedded Processing
Other
Total revenue
Operating profit:
Analog.
Embedded Processing
Other
Total operating profit
For Years Ended December 31,
2016
2015
2014
$ 8,536
3,023
1,811
$ 13,370
$ 8,339
2,787
1,874
$13,000
$ 8,104
2,740
2,201
$ 13,045
$ 3,380
$ 3,048
$ 2,786
801
618
596
630
384
777
$ 4,799
$ 4,274
$ 3,947
TEXAS INSTRUMENTS . 2016 FORM 10-K
31
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