Segment Financial Data

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Segment Financial Data

Segment Financial Data

We monitor our business operations through our two operating segments: Products and Solutions and ADI Global Distribution.

These operating segments follow the same accounting policies used for the financial statements. We evaluate a segment’s performance on a GAAP basis, primarily operating income before corporate expenses.

Corporate expenses include expenses related to the corporate office as well as supporting the operating segments, but do not relate directly to revenue-generating activities primarily including unallocated stock-based compensation expenses, unallocated pension expense, restructuring expenses, acquisition-related costs, and other expenses related to executive, legal, finance, tax, treasury, human resources, IT, strategy, communications, and corporate travel expenses. Additional unallocated amounts primarily include non-operating items such as Reimbursement Agreement expense, interest income, interest expense, and other income (expense). The Reimbursement Agreement is further described in Note 16. Commitments and Contingencies to the Unaudited Consolidated Financial Statements.

Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance.

The following table represents summary financial data attributable to the segments:

	Three Months Ended
(in millions)	April 1, 2023		April 2, 2022
Net revenue
Products and Solutions	$	658	$	619
ADI Global Distribution	891		887
Total net revenue	$	1,549	$	1,506

	Three Months Ended
(in millions)	April 1, 2023		April 2, 2022
Income from operations
Products and Solutions	$	117	$	153
ADI Global Distribution	72		80
Corporate	(51)		(61)
Total income from operations	$	138	$	172

The Company’s Chief Executive Officer, its Chief Operating Decision Maker, does not use segment assets information to allocate resources or to assess performance of the segments and therefore, total segment assets have not been reported.