Financial segments

Analog | Embedded Processing | Other

TI has three segments: Analog, Embedded Processing and Other. Our segments align with how we manage the company. We provide revenue and operating profit for each of our segments, as we believe this will provide investors with a deeper, more meaningful insight into the opportunities and performance that drive the overall performance of our company.

We view Analog and Embedded Processing as our core businesses and as two of the best semiconductor markets in the world today. These technologies are pervasive; analog, for example, can be found in every electronics device there is. They can be produced with more long-lived and less capital-intensive manufacturing equipment and process technologies. Their product life cycles are measured in years if not decades, enabling a stable base of revenue and solid returns on investments. They are also very diversified with tens of thousands of customers who use these technologies in a wide range of applications. We see this diversity as highly desirable as our success is no longer singularly dependent on choosing the next winning end equipment or market. Instead, we can participate in both high-profile opportunities as well as innumerable smaller-scale applications that span many markets and thousands of customers. Bottom line, they offer us the opportunity for growth, solid profits, greater stability and compelling cash generation. In 2013, 79 percent of our revenue came from our core businesses of Analog and Embedded Processing.

Our Other segment also adds value to TI. Although the product lines and revenue streams in this segment tend to have lower growth rates, they provide high returns given the relatively low level of investment they require. This segment also has included legacy wireless products, an area from which we have exited. It is noted here for historical purposes, as at the end of 2013, legacy wireless revenue was essentially zero.