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. We have two reportable segments, which are established along major categories of products as follows:

•

Analog – consisting of the following product lines: Power, Signal Chain and High Volume.

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Embedded Processing – consisting of the following product lines: Connected Microcontrollers and Processors.

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 and custom ASIC products.

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.

Segment information

	For Three Months Ended				For Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Revenue:
Analog	$	2,690	$	2,411	$	5,256	$	4,667
Embedded Processing		943		868		1,869		1,671
Other		384		414		681		757
Total revenue	$	4,017	$	3,693	$	7,806	$	7,095

Operating profit:
Analog	$	1,263	$	1,077	$	2,429	$	2,012
Embedded Processing		334		271		662		511
Other		115		132		169		209
Total operating profit	$	1,712	$	1,480	$	3,260	$	2,732

Geographic area information

The following geographic area information includes revenue based on product shipment destination. The revenue information is not necessarily indicative of the geographic area in which the end applications containing our products are ultimately consumed because our products tend to be shipped to the locations where our customers manufacture their products. Specifically, many of our products are shipped to our customers in China who may include these parts in the manufacture of their own end products, which they may in turn export to their customers around the world.

	For Three Months Ended				For Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Revenue:
United States	$	614	$	472	$	1,118	$	871
Asia (a)		2,340		2,159		4,555		4,163
Europe, Middle East and Africa		764		733		1,535		1,416
Japan		218		261		438		511
Rest of world		81		68		160		134
Total revenue	$	4,017	$	3,693	$	7,806	$	7,095

(a)	Revenue from products shipped into China, including Hong Kong, was $1.7 billion and $1.6 billion in the second quarters of 2018 and 2017, respectively, and $3.3 billion and $3.1 billion in the first six months of 2018 and 2017, respectively.