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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 27, 2024
Or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
(Commission File Number) 001-39317 
ON SEMICONDUCTOR CORPORATION
(Exact name of registrant as specified in its charter)  
Delaware 36-3840979
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
5701 N. Pima Road
Scottsdale, AZ 85250
(602) 244-6600

(Address, zip code and telephone number, including area code, of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareONThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated filer
  ☒
Accelerated filer ☐
Non-accelerated filer 
  ☐
Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  x

The number of shares outstanding of the issuer's class of common stock as of the close of business on October 23, 2024:
Title of Each ClassNumber of Shares
Common Stock, par value $0.01 per share425,797,438


ON SEMICONDUCTOR CORPORATION FORM 10-Q

TABLE OF CONTENTS



(See the glossary of selected terms immediately following this table of contents for definitions of certain abbreviated terms.)

ON SEMICONDUCTOR CORPORATION
FORM 10-Q
GLOSSARY OF SELECTED ABBREVIATED TERMS*

Abbreviated TermDefined Term
0% Notes0% Convertible Senior Notes due 2027
0.50% Notes0.50% Convertible Senior Notes due 2029
1.625% Notes1.625% Convertible Senior Notes due 2023
3.875% Notes3.875% Senior Notes due 2028
ADASAdvanced driver-assistance systems
Amended and Restated SIPON Semiconductor Corporation Amended and Restated Stock Incentive Plan, as amended
ASUAccounting Standards Update
Commission or SECSecurities and Exchange Commission
New Credit AgreementCredit agreement, dated as of June 22, 2023, by and among the Company, as borrower, the several lenders party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and certain other parties, providing for the Revolving Credit Facility
EFKEast Fishkill, New York fabrication facility
ESPPON Semiconductor Corporation 2000 Employee Stock Purchase Plan, as amended
Exchange ActSecurities Exchange Act of 1934, as amended
IPIntellectual property
IRSUnited States Internal Revenue Service
ITInformation Technology
Revolving Credit FacilityA $1.5 billion senior revolving credit facility created pursuant to the New Credit Agreement
ROURight-of-use
RSURestricted stock unit
SiCSilicon carbide
Securities ActSecurities Act of 1933, as amended
U.S. or United StatesUnited States of America

* Terms used, but not defined, within the body of the Form 10-Q are defined in this Glossary.


PART I: FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
ON SEMICONDUCTOR CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
(unaudited)

September 27,
2024		December 31,
2023
Assets
Cash and cash equivalents$2,470.2 $2,483.0 
Short-term investments300.0 — 
Receivables, net1,070.6 935.4 
Inventories2,242.8 2,111.8 
Other current assets461.1 382.1 
Total current assets6,544.7 5,912.3 
Property, plant and equipment, net4,383.7 4,401.5 
Goodwill1,587.9 1,577.6 
Intangible assets, net273.1 299.3 
Deferred tax assets725.8 600.8 
ROU financing lease assets41.1 42.4 
Other assets367.3 381.3 
Total assets$13,923.6 $13,215.2 
Liabilities and Stockholders’ Equity
Accounts payable$597.5 $725.6 
Accrued expenses and other current liabilities734.3 663.2 
Current portion of financing lease liabilities0.4 0.8 
Current portion of long-term debt796.4 794.0 
Total current liabilities2,128.6 2,183.6 
Long-term debt2,547.2 2,542.6 
Deferred tax liabilities42.8 38.7 
Long-term financing lease liabilities22.4 22.4 
Other long-term liabilities578.6 627.3 
Total liabilities5,319.6 5,414.6 
Commitments and contingencies (Note 9)
ON Semiconductor Corporation stockholders’ equity:
Common stock ($0.01 par value, 1,250,000,000 shares authorized, 622,306,537 and 616,281,996 issued, 425,645,765 and 426,386,426 outstanding, respectively)
6.2 6.2 
Additional paid-in capital5,321.9 5,210.9 
Accumulated other comprehensive loss(49.1)(45.2)
Accumulated earnings7,741.0 6,548.1 
Less: Treasury stock, at cost: 196,660,772 and 189,895,570 shares, respectively
(4,435.9)(3,937.4)
Total ON Semiconductor Corporation stockholders’ equity8,584.1 7,782.6 
Non-controlling interest19.9 18.0 
Total stockholders’ equity8,604.0 7,800.6 
Total liabilities and stockholders’ equity$13,923.6 $13,215.2 
See accompanying notes to consolidated financial statements
4
ON SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in millions, except per share data)
(unaudited)
 Quarters EndedNine Months Ended
 September 27,
2024		September 29,
2023		September 27,
2024		September 29,
2023
Revenue$1,761.9 $2,180.8 $5,359.8 $6,234.9 
Cost of revenue962.5 1,150.1 2,922.8 3,293.3 
Gross profit799.4 1,030.7 2,437.0 2,941.6 
Operating expenses:
Research and development151.0 143.4 457.5 427.1 
Selling and marketing65.4 68.2 203.1 211.6 
General and administrative95.5 110.7 275.8 273.8 
Amortization of acquisition-related intangible assets13.0 12.0 38.5 39.0 
Restructuring, asset impairments and other charges, net29.1 9.4 103.0 63.5 
Total operating expenses354.0 343.7 1,077.9 1,015.0 
Operating income445.4 687.0 1,359.1 1,926.6 
Other income (expense), net:
Interest expense(15.7)(16.2)(47.0)(59.0)
Interest income28.6 25.7 83.6 66.8 
Loss on debt prepayment— — — (13.3)
Loss on divestiture of business— (0.1)— (0.7)
Other income (expense)(3.7)1.1 (0.8)4.5 
Other income (expense), net9.2 10.5 35.8 (1.7)
Income before income taxes454.6 697.5 1,394.9 1,924.9 
Income tax provision(51.9)(114.6)(200.1)(302.7)
Net income402.7 582.9 1,194.8 1,622.2 
Less: Net income attributable to non-controlling interest(1.0)(0.2)(1.9)(1.2)
Net income attributable to ON Semiconductor Corporation$401.7 $582.7 $1,192.9 $1,621.0 
Net income for diluted earnings per share of common stock (Note 7)$401.7 $583.1 $1,192.9 $1,622.2 
Net income per share of common stock attributable to ON Semiconductor Corporation:
Basic$0.94 $1.35 $2.79 $3.76 
Diluted$0.93 $1.29 $2.75 $3.61 
Weighted-average shares of common stock outstanding:
Basic427.0 431.2 428.1 431.6 
Diluted431.7 450.7 433.8 449.3 
Comprehensive income (loss), net of tax:
Net income$402.7 $582.9 $1,194.8 $1,622.2 
Foreign currency translation adjustments3.6 (1.3)(0.7)(4.0)
Effects of cash flow hedges and other adjustments4.1 (6.2)(3.2)(17.7)
Other comprehensive income (loss), net of tax7.7 (7.5)(3.9)(21.7)
Comprehensive income410.4 575.4 1,190.9 1,600.5 
Comprehensive income attributable to non-controlling interest(1.0)(0.2)(1.9)(1.2)
Comprehensive income attributable to ON Semiconductor Corporation$409.4 $575.2 $1,189.0 $1,599.3 
See accompanying notes to consolidated financial statements
5
ON SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in millions, except share data) 
(unaudited)

Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossTreasury StockNon-Controlling Interest
Number of sharesAt Par ValueAccumulated EarningsNumber of sharesAt CostTotal Equity
Balance at June 28, 2024622,068,261 $6.2 $5,283.3 $(56.8)$7,339.3 (193,850,387)$(4,232.5)$18.9 $8,358.4 
Shares issued pursuant to the ESPP102,388 — 5.9 — — — — — 5.9 
RSUs released and stock grant awards issued135,876 — — — — — — — — 
Partial settlement - 0% Notes
10 — — — — — — — — 
Partial settlement of bond hedges - 0% Notes
— — — — — (10)— — — 
Partial settlement of Warrants - 0% Notes
2 — — — — — — — — 
Payment of tax withholding for RSUs— — — — — (41,841)(3.0)— (3.0)
Share-based compensation— — 32.7 — — — — — 32.7 
Repurchase of common stock— — — — — (2,768,534)(200.4)— (200.4)
Comprehensive income— — — 7.7 401.7 — — 1.0 410.4 
Balance at September 27, 2024622,306,537 $6.2 $5,321.9 $(49.1)$7,741.0 (196,660,772)$(4,435.9)$19.9 $8,604.0 
Balance at December 31, 2023616,281,996 $6.2 $5,210.9 $(45.2)$6,548.1 (189,895,570)$(3,937.4)$18.0 $7,800.6 
Shares issued pursuant to the ESPP218,379 — 13.0 — — — — — 13.0 
RSUs released and stock grant awards issued1,777,879 — — — — — — — — 
Partial settlement - 0% Notes
53 — — — — — — — — 
Partial settlement of bond hedges - 0% Notes
— — — — — (50)— — — 
Settlement of Warrants - 0% Notes
14 — — — — — — — — 
Settlement of Warrants - 1.625% Notes
4,028,216 — — — — — — — — 
Payment of tax withholding for RSUs— — — — — (637,071)(48.1)— (48.1)
Share-based compensation— — 98.0 — — — — — 98.0 
Repurchase of common stock— — — — — (6,128,081)(450.4)— (450.4)
Comprehensive income (loss)— — — (3.9)1,192.9 — — 1.9 1,190.9 
Balance at September 27, 2024622,306,537 $6.2 $5,321.9 $(49.1)$7,741.0 (196,660,772)$(4,435.9)$19.9 $8,604.0 

See accompanying notes to consolidated financial statements


















6
ON SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in millions, except share data) 
(unaudited)

Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossTreasury StockNon-Controlling Interest
Number of sharesAt Par ValueAccumulated EarningsNumber of sharesAt CostTotal Equity
Balance at June 30, 2023611,286,417 $6.1 $4,714.6 $(37.4)$5,402.7 (179,765,811)$(3,101.9)$19.5 $7,003.6 
RSUs released and stock grant awards issued186,072 — — — — — — — — 
Partial settlement - 0% Notes
572 — — — — — — — — 
Partial settlement of bond hedges - 0% Notes
— — — — — (570)(0.1)— (0.1)
Partial settlement of warrants - 0% Notes
132 — — — — — — — — 
Partial settlement - 1.625% Notes
416 — — — — — — — — 
Partial settlement of bond hedges - 1.625% Notes
— — 0.1 — — (447)(0.1)— — 
Partial settlement of warrants - 1.625% Notes
159 — — — — — — — 
Payment of tax withholding for RSUs— — — — — (53,735)(5.2)— (5.2)
Share-based compensation— — 31.1 — — — — — 31.1 
Repurchase of common stock— — — — — (1,058,573)(100.8)— (100.8)
Comprehensive income (loss)— — — (7.5)582.7 — — 0.2 575.4 
Balance at September 29, 2023611,473,768 $6.1 $4,745.8 $(44.9)$5,985.4 (180,879,136)$(3,208.1)$19.7 $7,504.0 
Balance at December 31, 2022608,367,713 $6.1 $4,670.9 $(23.2)$4,364.4 (176,431,298)$(2,829.7)$18.5 $6,207.0 
Shares issued pursuant to the ESPP220,714 — 13.2 — — — — — 13.2 
RSUs released and stock grant awards issued2,262,751 — — — — — — — — 
Warrants and bond hedges, net - 0.50% Notes
— — (171.5)— — — — — (171.5)
Tax impact of warrants and bond hedges, net— — 92.3 — — — — — 92.3 
Partial settlement - 0% Notes
585 — — — — — — — — 
Partial settlement of bond hedges -0% Notes
— — — — — (580)(0.1)— (0.1)
Partial settlement of warrants - 0% Notes
132 — — — — — — — — 
Partial settlement -1.625% Notes
621,714 — — — — — — — — 
Partial settlement of bond hedges - 1.625% Notes
— — 50.5 — — (621,740)(50.5)— — 
Partial settlement of warrants - 1.625% Notes
159 — — — — — — — — 
Payment of tax withholding for RSUs— — — — — (749,058)(62.6)— (62.6)
Share-based compensation— — 90.4 — — — — — 90.4 
Repurchase of common stock— — — — — (3,076,460)(265.2)— (265.2)
Comprehensive income (loss)— — — (21.7)1,621.0 — — 1.2 1,600.5 
Balance at September 29, 2023611,473,768 $6.1 $4,745.8 $(44.9)$5,985.4 (180,879,136)$(3,208.1)$19.7 $7,504.0 

See accompanying notes to consolidated financial statements

7

ON SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)

 Nine Months Ended
 September 27,
2024		September 29,
2023
Cash flows from operating activities:
Net income$1,194.8 $1,622.2 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization476.3 449.2 
Loss on sale or disposal of fixed assets5.1 7.3 
Loss on divestiture of business— 0.7 
Loss on debt prepayment— 13.3 
Amortization of debt discount and issuance costs9.2 8.7 
Share-based compensation98.0 90.4 
Non-cash asset impairment charges15.7 12.7 
Change in deferred tax balances(122.1)(109.0)
Other7.0 1.5 
Changes in assets and liabilities:
Receivables(145.5)(137.4)
Inventories(130.2)(468.3)
Other assets(17.4)13.6 
Accounts payable(42.5)(27.6)
Accrued expenses and other current liabilities38.3 (183.2)
Other long-term liabilities(60.0)72.2 
Net cash provided by operating activities1,326.7 1,366.3 
Cash flows from investing activities:
Purchase of property, plant and equipment(549.1)(1,185.1)
Proceeds from sale of property, plant and equipment0.6 2.8 
Deposits utilized for purchase of property, plant and equipment12.4 32.4 
Purchase of short-term investments(750.0)— 
Proceeds from sale or maturity of short-term investments and available-for-sale securities450.0 33.5 
Purchase of a business, net of cash acquired(20.5)— 
Payments related to acquisition of business— (236.3)
Other(1.5)— 
Net cash used in investing activities(858.1)(1,352.7)
Cash flows from financing activities:
Proceeds for the issuance of common stock under the ESPP19.6 19.9 
Payment of tax withholding for RSUs(48.3)(62.4)
Repurchase of common stock(450.0)(264.0)
Issuance and borrowings under debt agreements— 1,845.0 
Reimbursement of debt issuance and other financing costs— 4.5 
Payment of debt issuance and other financing costs— (11.7)
Repayment of borrowings under debt agreements— (1,603.8)
Payment for purchase of bond hedges— (414.0)
Proceeds from issuance of warrants— 242.5 
Payment of financing lease obligations(1.8)(10.3)
Net cash used in financing activities(480.5)(254.3)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(0.7)(1.5)
Net decrease in cash, cash equivalents and restricted cash(12.6)(242.2)
Cash, cash equivalents and restricted cash, beginning of period (Note 5)2,485.0 2,933.0 
Cash, cash equivalents and restricted cash, end of period (Note 5)$2,472.4 $2,690.8 

See accompanying notes to consolidated financial statements
8
ON SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 1: Background and Basis of Presentation

ON Semiconductor Corporation (“onsemi,” “we,” “us,” “our,” or the “Company”), with its wholly and majority-owned subsidiaries, operates under the onsemiTM brand. The Company is organized into three operating and reportable segments: the Power Solutions Group ("PSG"), the Analog and Mixed-Signal Group ("AMG"), and the Intelligent Sensing Group ("ISG"). During the first quarter of 2024, onsemi reorganized the existing divisions within certain of its operating and reportable segments and renamed the Advanced Solutions Group ("ASG") reportable segment to AMG. See Note 2: ''Segments and Revenue'' for additional information regarding the segment reorganization.

The Company's fiscal calendar year begins on January 1 and ends on December 31, with each fiscal quarter containing a thirteen-week accounting period. The quarters ended September 27, 2024 and September 29, 2023 contained 91 days each. The nine months ended September 27, 2024 and September 29, 2023 contained 271 days and 272 days, respectively.

The accompanying unaudited financial statements as of and for the quarter and nine months ended September 27, 2024 have been prepared following generally accepted accounting principles in the United States of America ("GAAP") for interim financial reporting and the rules and regulations of the SEC for interim reporting. Accordingly, the unaudited financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. The balance sheet as of December 31, 2023 was derived from the Company's audited financial statements but does not include all disclosures required by GAAP for annual financial statements. In management's opinion, the interim information contains all adjustments, which include normal recurring adjustments necessary for a fair statement of the results for the interim periods. The footnote disclosures related to the interim financial information contained herein are also unaudited. Such financial information should be read in conjunction with the consolidated financial statements and related notes thereto for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 5, 2024 (the "2023 Form 10-K").

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations, and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) calculation of future payouts for customer incentives and amounts subject to allowances and returns; (ii) valuation and obsolescence relating to inventories; (iii) measurement of valuation allowances against deferred tax assets and evaluations of uncertain tax positions; (iv) testing for impairment of long-lived assets and goodwill; and (v) assumptions used in business combinations. Actual results may differ from the estimates and assumptions used in the consolidated financial statements.



9
ON SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
(unaudited)


Note 2: Segments and Revenue

Segments
The Company is organized into three operating and reportable segments consisting of PSG, AMG and ISG. These segments represent management's view of the business, and gross profit is used to evaluate its performance, the progress of major initiatives and the allocation of resources.

PSG formerly included the divisions of Advanced Power Division and Integrated Circuits, Protection and Signal Division ("IPS"). During the first quarter of 2024, management reorganized them to the divisions of Automotive Power Division, Industrial Power Division and Multi-Market Power Division (“MPD”). Further, IPS was split, with portions remaining in MPD and portions moving to the new Integrated Circuits Division within AMG. Management performed a goodwill impairment analysis on the divisions (which were the reporting units) prior to and after the reorganization and did not identify an impairment.

Revenue and gross profit for the operating and reportable segments were as follows (in millions):
PSG(1)
AMG(1)
ISGTotal
For the quarter ended September 27, 2024:
Revenue from external customers$829.4 $653.7 $278.8 $1,761.9 
Gross profit$344.9 $325.3 $129.2 $799.4 
For the quarter ended September 29, 2023:
Revenue from external customers$1,076.5 $775.7 $328.6 $2,180.8 
Gross profit$513.5 $361.1 $156.1 $1,030.7 
For the nine months ended September 27, 2024:
Revenue from external customers$2,538.8 $1,998.5 $822.5 $5,359.8 
Gross profit$1,059.1 $986.0 $391.9 $2,437.0 
For the nine months ended September 29, 2023:
Revenue from external customers$2,914.8 $2,312.3 $1,007.8 $6,234.9 
Gross profit$1,377.9 $1,075.3 $488.4 $2,941.6 

(1)During the first quarter of 2024, the Company reorganized certain reporting units and its segment reporting structure. As a result of the reorganization of divisions within PSG and AMG, the prior-period amounts have been reclassified to conform to current-period presentation.

The Company had one customer, a distributor, whose revenue accounted for approximately 12% and 11% of the total revenue for the quarters ended September 27, 2024 and September 29, 2023, respectively, and approximately 11% and 10% of the total revenue for the nine months ended September 27, 2024 and September 29, 2023, respectively. One customer, a distributor, accounted for approximately 10% of the Company's accounts receivable balance as of September 27, 2024, and no single customer had an accounts receivable concentration of 10% or greater as of December 31, 2023.

10
ON SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
(unaudited)


Revenue for the operating and reportable segments disaggregated into geographic locations based on sales billed from the respective country and sales channel was as follows (in millions):
Quarter Ended September 27, 2024
PSGAMGISGTotal
Geographic Location:
Hong Kong$215.6 $186.6 $64.7 $466.9 
Singapore276.3 146.0 27.2 449.5 
United Kingdom178.8 117.3 99.7 395.8 
United States89.5 147.3 45.1 281.9 
Other69.2 56.5 42.1 167.8 
Total$829.4 $653.7 $278.8 $1,761.9 
Sales Channel:
Distributors$539.3 $370.3 $86.5 $996.1 
Direct customers290.1 283.4 192.3 765.8 
Total$829.4 $653.7 $278.8 $1,761.9 
Nine Months Ended September 27, 2024
PSGAMGISGTotal
Geographic Location:
Hong Kong$649.2 $498.5 $178.1 $1,325.8 
Singapore689.7 493.0 90.3 1,273.0 
United Kingdom569.1 373.8 310.7 1,253.6 
United States442.5 452.4 130.8 1,025.7 
Other188.3 180.8 112.6 481.7 
Total$2,538.8 $1,998.5 $822.5 $5,359.8 
Sales Channel:
Distributors$1,504.9 $1,062.3 $289.9 $2,857.1 
Direct customers1,033.9 936.2 532.6 2,502.7 
Total$2,538.8 $1,998.5 $822.5 $5,359.8 

11
ON SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
(unaudited)


Quarter Ended September 29, 2023
PSG(1)
AMG(1)
ISGTotal
Geographic Location:
Hong Kong$311.8 $197.8 $72.3 $581.9 
Singapore304.0 153.6 49.2 506.8 
United Kingdom211.8 157.1 95.3 464.2 
United States182.8 178.3 63.4 424.5 
Other66.1 88.9 48.4 203.4 
Total$1,076.5 $775.7 $328.6 $2,180.8 
Sales Channel:
Distributors$605.5 $394.4 $138.0 $1,137.9 
Direct customers471.0 381.3 190.6 1,042.9 
Total$1,076.5 $775.7 $328.6 $2,180.8 
Nine Months Ended September 29, 2023
PSG(1)
AMG(1)
ISGTotal
Geographic Location:
Hong Kong$836.2 $570.3 $196.0 $1,602.5 
Singapore851.7 468.0 157.1 1,476.8 
United Kingdom571.4 487.3 268.1 1,326.8 
United States451.6 501.6 241.3 1,194.5 
Other203.9 285.1 145.3 634.3 
Total$2,914.8 $2,312.3 $1,007.8 $6,234.9 
Sales Channel:
Distributors$1,710.3 $1,116.7 $477.8 $3,304.8 
Direct customers1,204.5 1,195.6 530.0 2,930.1 
Total$2,914.8 $2,312.3 $1,007.8 $6,234.9 

(1)During the first quarter of 2024, the Company reorganized certain reporting units and its segment reporting structure. As a result of the reorganization of divisions within PSG and AMG, the prior-period amounts have been reclassified to conform to current-period presentation.

The Company operates in various geographic locations. Sales to external customers have little correlation to where products are manufactured or the location of the end-customers. It is, therefore, not meaningful to present operating profit by geographical location.

The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. The consolidated assets used in manufacturing are generally shared and are not specifically ascribed to operating and reportable segments. In situations where the carrying amounts assigned to an asset group need to be evaluated for recoverability, judgment is used to determine the carrying amounts of the asset group based on the facts and circumstances.

12
ON SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
(unaudited)


Property, plant and equipment, net by geographic location, is summarized below (in millions):
As of
September 27, 2024December 31, 2023
South Korea$1,433.6 $1,360.8 
United States1,407.2 1,456.5 
Czech Republic587.7 559.7 
China237.6 252.2 
Philippines226.0 252.9 
Malaysia187.9 199.3 
Vietnam153.6 164.3 
Other150.1 155.8 
Total$4,383.7 $4,401.5 

Revenue
The Company's revenue derives primarily from product sales and to a much lesser extent from manufacturing services and product development agreements. For the quarters ended September 27, 2024 and September 29, 2023, revenue recognized from product sales as a percentage of total revenue was approximately 99% in each period and revenue recognized from manufacturing services and product development agreements was approximately 1% of total revenue in each period. For the nine months ended September 27, 2024 and September 29, 2023, revenue recognized from product sales as a percentage of total revenue was approximately 98% in each period and revenue recognized from manufacturing services and product development agreements was approximately 2% of total revenue in each period.

Revenue disaggregated by end-markets and product technologies was as follows (in millions):
Quarters EndedNine Months Ended
September 27, 2024September 29, 2023September 27, 2024September 29, 2023
End-Markets:
Automotive$951.2 $1,157.8 $2,875.3 $3,205.6 
Industrial439.9 615.8 1,384.0 1,781.3 
Other*370.8 407.2 1,100.5 1,248.0 
Total$1,761.9 $2,180.8 $5,359.8 $6,234.9 
* Other primarily includes the end-markets of computing, consumer, networking and communications.
Product Technologies:
Intelligent Power$914.5 $1,154.8 $2,765.9 $3,146.3 
Intelligent Sensing344.0 406.3 1,017.7 1,234.8 
Other503.4 619.7 1,576.2 1,853.8 
Total$1,761.9 $2,180.8 $5,359.8 $6,234.9 

Remaining Performance Obligations
A portion of the Company's orders are firm commitments that are non-cancellable, including certain orders or contracts with a duration of less than one year. Certain of the Company's customer contracts are multi-year agreements that include committed amounts ("Long-term Supply Agreements" or "LTSAs") for which the remaining performance obligations as of September 27, 2024 are approximately $13.7 billion (excluding the remaining performance obligations for contracts having a duration of one year or less). The Company expects to recognize approximately 31% of this amount as revenue during the next 12 months upon shipment of products under these contracts. Total revenue estimates are based on negotiated contract prices and demand quantities, and could be influenced by risks and uncertainties, including manufacturing or supply chain constraints, modifications to customer agreements and regulatory changes, among other factors. The timing, pricing or amount of products
13
ON SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
(unaudited)


delivered under LTSAs may be modified in circumstances upon mutual agreement, and the actual revenue recognized for the remaining performance obligations in future periods may significantly fluctuate from current estimates.

Certain LTSAs include non-cancellable capacity payments from the customer, which are generally due within 30 days of the agreement. These payments reserve production availability or are prepayments for the same purpose and are not recognized as revenue until the performance obligations are satisfied. Payments received in advance of the satisfaction of performance obligations are recorded as contract liabilities. The Company fulfilled certain performance obligations and recognized revenue of $42.0 million and $30.1 million for the quarters ended September 27, 2024 and September 29, 2023, respectively, and $77.4 million and $61.7 million for the nine months ended September 27, 2024 and September 29, 2023, respectively, related to contract liabilities outstanding as of the end of each respective prior period.

Contract Balances
Contract assets and contract liabilities were as follows (in millions):
As of
September 27, 2024December 31, 2023
Contract assets included in:
Other current assets$150.1 $83.1 
Other assets— 12.0 
Total$150.1 $95.1 
Contract liabilities included in:
Other current liabilities$111.4 $87.6 
Other long-term liabilities161.7 216.6 
Total$273.1 $304.2 

Note 3: Recent Accounting Pronouncements and Other Developments

Pending Adoption

Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07")

In November 2023, the FASB issued ASU 2023-07 to enhance disclosures about significant segment expenses. The amendments in this ASU require a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. The amendments in this ASU also clarify circumstances in which an entity can disclose multiple segment measures of profit or loss and provide new segment disclosure requirements for entities with a single reportable segment. The Company will adopt ASU 2023-07 for its financial statements starting with the fiscal year ended December 31, 2024 and interim periods within the fiscal year ended December 31, 2025, and it will be applied retrospectively to all periods presented. Management has substantially completed its evaluation of this standard, which only impacts the disclosures, and does not expect the adoption to have a material impact on the Company's results of operations or financial condition.

Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09")

In December 2023, the FASB issued ASU 2023-09 to enhance disclosures about income taxes. The amendments in this ASU require a public entity to disclose in tabular format, using both percentages and reporting currency amounts, specific categories in the rate reconciliation and to provide additional information for reconciling items that meet a quantitative threshold. The amendments in this ASU also require taxes paid (net of refunds received) to be disaggregated by federal, state and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. For public business entities, the provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating the requirements under this new standard.

14
ON SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
(unaudited)


SEC Climate Disclosure

In March 2024, the SEC issued final rules requiring registrants to include comprehensive climate-related disclosures in annual reports and registration statements. As adopted, the final rules require large accelerated filers to make their first climate-related disclosures for fiscal years beginning in 2025. However, in April 2024, the SEC issued an order voluntarily staying the effectiveness of the new rules pending the completion of judicial review of certain legal challenges to their validity. Management is currently evaluating these rules as adopted while monitoring the status of the related litigation and the SEC’s stay.

Note 4: Restructuring, Asset Impairments and Other Charges, Net

Details of restructuring, asset impairments and other charges, net are as follows (in millions):        <
RestructuringAsset Impairments
Other
Charges (2)
Total
Quarter ended September 27, 2024
2024 Business Realignment$17.6 $