Texas Instruments 2015 Annual Report Download - page 37

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FORM 10-K
Notes to financial statements
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 – consists of the following product lines: High Volume Analog & Logic; Power Management; High Performance Analog;
and Silicon Valley Analog, which consists primarily of products that we acquired through our purchase of National Semiconductor
Corporation (National) in 2011.
•฀ Embedded Processing – consists of the following product lines: Processor, 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, custom application-specific integrated circuits, calculators, royalties, and products from our former Wireless segment, which
was eliminated effective January 1, 2013.
We also include in Other items that are not used in evaluating the results of or in allocating resources to our segments. These include
acquisition-related charges (see Note 3); restructuring charges (see Note 4); 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. There was no significant 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 For Years Ended December 31,
2014 2013 2012
Revenue:
Analog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,104 $ 7,194 $ 6,998
Embedded Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,740 2,450 2,257
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,201 2,561 3,570
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,045 $ 12,205 $ 12,825
Operating profit:
Analog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,786 $ 1,859 $ 1,650
Embedded Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 185 158
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777 788 165
Total operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,947 $ 2,832 $ 1,973
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