|
NOTE 15 - OPERATING SEGMENT AND GEOGRAPHIC INFORMATION
Fairchild designs, develops, manufactures and markets
high performance multi-market semiconductors. The Company is currently
organized into three reportable segments: Analog and Mixed Signal Products
Group ("Analog"), Discrete Products Group ("Discrete") and Interface and
Logic Products Group ("Interface and Logic").
The Company has determined that its Configurable Products
business unit (formally known as the Non-Volatile Memory Division which
was reported as a separate segment) and its Optoelectronics Group do not
meet the threshold for a separate reportable segment under SFAS No, 131,
and accordingly these segments' results are included as part of the "Other"
category for all periods presented. Management evaluates the contract
manufacturing business differently than its other operating segments due
in large part to the fact that it is predominantly driven by contractual
agreements for limited time periods entered into with National Semiconductor
and Samsung Electronics.
In addition to the operating segments mentioned above,
the Company also operates global operations, sales and marketing, information
systems, finance and administration groups that are led by vice presidents
who report to the Chief Executive Officer. The expenses of these groups
are allocated to the operating segments and are included in the operating
results reported below. The Company does not allocate income taxes to
its operating segments, and while interest expense allocations are made
for informational purposes, the operating segments are principally evaluated
on operating profit before interest and taxes.
The Company does not specifically identify and allocate
all assets by operating segment. It is the Company's policy to fully allocate
depreciation and amortization to its operating segments. Operating segments
do not sell products to each other, and accordingly, there are no inter-segment
revenues to be reported. The accounting policies for segment reporting
are the same as for the Company as a whole.
Statement of operations information on reportable segments
for Calendar 2000, Stub Year 1999, Fiscal 1999, and Fiscal 1998 is as
follows:
| |
|
Stub
|
|
|
| |
Calendar
|
Year
|
Fiscal
|
Fiscal
|
| (In millions) |
2000
|
1999
|
1999
|
1998
|
 |
| Revenue and Operating Income (Loss): |
|
|
|
|
| Analog and Mixed Signal Products Group |
|
|
|
|
| Trade revenue |
$ 378.7
|
$ 177.6
|
$ 99.7
|
$ 40.0
|
| Operating income |
40.6
|
19.6
|
(4.5)
|
1.1
|
|
| Discrete Products Group |
|
|
|
|
| Trade revenue |
$ 749.0
|
$ 316.9
|
$ 222.8
|
$ 187.3
|
| Operating income |
129.7
|
24.6
|
16.8
|
35.6
|
|
| Interface and Logic Products Group |
|
|
|
|
| Trade revenue |
$ 424.2
|
$ 184.0
|
$ 267.6
|
$ 303.0
|
| Operating income |
106.5
|
20.9
|
18.8
|
43.1
|
|
| Other |
|
|
|
|
| Trade revenue(1) |
$ 129.7
|
$ 35.5
|
$ 64.0
|
$ 105.5
|
| Contract manufacturing revenue |
101.6
|
72.2
|
81.0
|
153.4
|
| Operating income (loss)(2) |
51.1
|
17.4
|
(78.5)
|
7.5
|
|
| Total Consolidated |
|
|
|
|
| Trade revenue |
$1,681.6
|
$ 714.0
|
$ 654.1
|
$ 635.8
|
| Contract manufacturing revenue |
101.6
|
72.2
|
81.0
|
153.4
|
| Operating income (loss) |
327.9
|
82.5
|
(47.4)
|
87.3
|
|
(1)
|
Includes $5.5 million reduction to trade
sales due to the memory restructuring action in Fiscal 1999. |
|
(2)
|
Other includes in Calendar 2000, a $3.5
million gain resulting from additional funds received in connection
with the sale of the Company's former Mountain View, California facility,
a $2.1 million gain for the adjustment of restructuring reserves upon
final execution of several prior year actions and $9.0 million of
in-process research and development costs associated with the Company's
QT Optoelectronics, KOTA and Micro Linear acquisitions; in Stub Year
1999, an $8.3 million charge for the forgiveness of certain loans
made to the Company's management investors for payment of individual
income tax liabilities resulting from their ownership of Fairchild
Internationals common stock; in Fiscal 1999, charges of $34.0 million
for purchased in-process research and development, $21.3 million for
restructuring, $15.4 million for additional charges taken for asset
impairments in connection with the Memory restructuring and $1.1 million
of other charges not allocated to the operating segments; and, in
Fiscal 1998, purchased in-process research and development of $15.5
million. |
Depreciation and amortization by reportable operating
segment were as follows:
| |
|
Stub
|
|
|
| |
Calendar
|
Year
|
Fiscal
|
Fiscal
|
| (In millions) |
2000
|
1999
|
1999
|
1998
|
|
| Analog and Mixed Signal |
|
|
|
-
|
| Products Group |
$ 30.8
|
$ 16.0
|
$ 12.0
|
$ 3.3
|
| Discrete Products Group |
58.1
|
32.5
|
28.6
|
20.8
|
| Interface and Logic Products Group |
51.7
|
31.3
|
53.2
|
51.7
|
| Other |
10.5
|
2.5
|
10.0
|
9.0
|
|
| Total |
$ 151.1
|
$ 82.3
|
$ 103.8
|
$ 84.8
|
|
Geographic revenue information are based on the locations
of the selling entities within the indicated geographic areas. No individual
foreign country except Korea is material to total revenues.
Revenues by geographic region were as follows:
| |
Calendar
|
Stub Year
|
Fiscal
|
Fiscal
|
| (In millions) |
2000
|
1999
|
1999
|
1998
|
|
| Total Revenues: |
|
|
|
|
| United States |
$ 470.3
|
$ 201.2
|
$ 299.5
|
$ 395.7
|
| Korea |
321.0
|
172.3
|
68.8
|
-
|
| Asia / Pacific |
764.9
|
325.6
|
255.5
|
260.9
|
| Europe |
227.0
|
87.1
|
111.3
|
132.6
|
|
| Total |
$ 1,783.2
|
$ 786.2
|
$ 735.1
|
$ 789.2
|
|
In Calendar 2000, Stub Year 1999, Fiscal 1999 and
Fiscal 1998, National Semiconductor accounted for 4.3%, 6.9%, 11.0% and
19.4%, respectively, of the Company's total revenues. In Calendar 2000
and in Stub Year 1999, sales to Samsung Electronics accounted for 8.9%
and 7.0%, respectively, of the Company's total revenues.
Geographic property, plant and equipment balances as
of December 31, 2000 and December 26, 1999 are based on the physical locations
within the indicated geographic areas and are as follows:
| |
December 31,
|
December 26,
|
| (In millions) |
2000
|
1999
|
|
| Property, Plant & Equipment: |
|
|
| United States |
$ 255.1
|
$ 172.3
|
| Korea |
186.6
|
108.2
|
| Philippines |
58.0
|
47.1
|
| Malaysia |
84.7
|
43.1
|
| All Others |
12.2
|
5.1
|
|
| Total |
$ 596.6
|
$ 375.8
|
|
|
