SEGMENT INFORMATION

3 Months Ended

Apr. 01, 2016

Text Block [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

To achieve distribution, marketing, production and technology advantages, the Company manages its operations in the following four segments:

• Engineering and Construction: This segment primarily serves customers working in architecture, engineering, construction, geospatial and government. Within this segment our most substantial product portfolios are focused on civil engineering and construction, building construction, and geospatial.

• Field Solutions: This segment provides solutions for the farming, government and consumer markets, with its products focused on agriculture and geographic information systems (GIS).

• Mobile Solutions: This segment provides solutions that enable end-users to monitor and manage their mobile work, mobile workers and mobile assets in the areas of transportation and logistics and field services management.

• Advanced Devices: The various operations that comprise this segment are aggregated on the basis that these operations, taken as a whole, do not exceed 10% of the Company’s total revenue, operating income or assets. This segment is comprised of the Embedded Technologies, Timing, Applanix, Military and Advanced Systems and ThingMagic businesses.

The Company’s chief operating decision maker (CODM), its Chief Executive Officer, evaluates each of its segment’s performance and allocates resources based on segment operating income before income taxes and some corporate allocations. The Company and each of its segments employ consistent accounting policies. In each of its segments the Company sells many individual products. For this reason it is impracticable to segregate and identify revenue for each of the individual products or group of products.

The following table presents revenue, operating income, depreciation expense and identifiable assets for the four segments. Operating income is revenue less cost of sales and operating expense, excluding general corporate expense, acquisition costs, amortization of purchased intangible assets, restructuring charges, stock-based compensation and executive transition costs. The identifiable assets that the CODM views by segment are accounts receivable, inventories and goodwill.

	Reporting Segments
	Engineering and Construction		Field Solutions		Mobile Solutions		Advanced Devices		Total
(Dollars in millions)
First Quarter of Fiscal 2016
Revenue	$	309.8	$	106.0	$	136.3	$	30.9	$	583.0
Operating income	44.1		33.9		18.9		10.3		107.2
Depreciation expense	3.4		0.3		1.3		0.2		5.2
First Quarter of Fiscal 2015
Revenue	$	299.3	$	115.3	$	128.2	$	39.8	$	582.6
Operating income	37.0		40.6		20.5		15.2		113.3
Depreciation expense	3.6		0.3		1.3		0.1		5.3
As of the First Quarter of Fiscal 2016
Accounts receivable	$	215.2	$	73.3	$	70.0	$	19.3	$	377.8
Inventories	176.1		34.8		26.5		18.1		255.5
Goodwill	1,161.9		126.9		819.0		20.6		2,128.4
As of Fiscal Year End 2015
Accounts receivable	$	215.9	$	57.1	$	69.6	$	19.3	$	361.9
Inventories	178.0		36.0		30.4		16.7		261.1
Goodwill	1,140.1		125.7		820.7		19.9		2,106.4

A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows:

	First Quarter of
	2016			2015
(Dollars in millions)
Consolidated segment operating income	$	107.2		$	113.3
Unallocated corporate expense	(21.2		)	(19.3		)
Restructuring charges	(2.1		)	(1.3		)
Stock-based compensation	(13.7		)	(12.5		)
Amortization of purchased intangible assets	(40.3		)	(40.7		)
Consolidated operating income	29.9			39.5
Non-operating income (expense), net:	(0.5		)	4.7
Consolidated income before taxes	$	29.4		$	44.2

Unallocated corporate expense includes general corporate expense, acquisition costs and executive transition costs.