Segment Financial Data

9 Months Ended

Sep. 30, 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 relate to functions within the corporate office that support the operating segments such as acquisition-related costs, legal, tax, treasury, human resources, IT, strategy, accounting, communications, innovation, business development, facilities management, corporate travel expenses and other executive costs. Additionally, included within Corporate are unallocated non-operating items such as pension expense, Reimbursement Agreement expense, interest income, interest expense, and other income (expense).

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				Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Net revenue
Products and Solutions	$	654	$	707	$	1,989	$	2,090
ADI Global Distribution	900		911		2,716		2,720
Total net revenue	$	1,554	$	1,618	$	4,705	$	4,810

	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Income from operations
Products and Solutions	$	107	$	124	$	352	$	431
ADI Global Distribution	60		78		211		244
Corporate	(58)		(47)		(163)		(162)
Total income from operations	$	109	$	155	$	400	$	513

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.