SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company's Chief Executive Officer (our chief operating decision maker or "CODM") in deciding how to allocate resources and assess performance. The CODM evaluates each segment’s performance and allocates resources based on segment operating income before income taxes and 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. Stock-based compensation is shown in the aggregate within unallocated corporate expense and is not reflected in the segment results, which is consistent with the way the CODM evaluates each segment's performance and allocates resources.

Prior to fiscal 2017, the Company operated its business in four reportable segments - Engineering and Construction, Field Solutions, Mobile Solutions, and Advanced Devices. In March 2017, the Company effected a change in the reporting of its segment financial results to better reflect the Company’s customer base and end markets. Over time, the Company has experienced significant growth both organically and through strategic business acquisitions, resulting in an increasingly diversified business model. As a result of the Company’s evolution, the CODM changed the information he regularly reviews to allocate resources and assess performance. Beginning with the first fiscal quarter of 2017, the Company reports its financial performance based on four new reportable segments - Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation.

The Company’s reportable segments are described below:


•	Buildings and Infrastructure: This segment primarily serves customers working in architecture, engineering, construction, and operations and maintenance.


•	Geospatial: This segment primarily serves customers working in surveying, engineering, government, and land management.


•	Resources and Utilities: This segment primarily serves customers working in agriculture, forestry, and utilities.


•	Transportation: This segment primarily serves customers working in transportation, including transportation and logistics, automotive, rail, and military aviation.

The following tables present revenue, operating income, depreciation expense and identifiable assets for the four reportable segments. Operating income is revenue less cost of sales and operating expenses, excluding unallocated corporate expenses, restructuring charges, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition and divestiture items, and executive transition costs. The identifiable assets that the CODM views by segment are accounts receivable, inventories and goodwill.



	Reporting Segments
	Buildings and Infrastructure		Geospatial		Resources and Utilities		Transportation		Total
(In millions)
Third Quarter of Fiscal 2017
Revenue	$	214.5	$	169.7	$	114.4	$	171.4	$	670.0
Operating income	52.2		36.7		26.5		31.2		146.6
Depreciation expense	1.4		1.5		0.9		1.3		5.1
Third Quarter of Fiscal 2016
Revenue	$	189.3	$	159.9	$	87.5	$	147.4	$	584.1
Operating income	40.9		35.3		25.2		26.5		127.9
Depreciation expense	1.7		1.5		0.5		1.4		5.1
First Three Quarters of Fiscal 2017
Segment revenue	$	625.3	$	484.8	$	345.3	$	490.4	$	1,945.8
Operating income	135.3		94.8		103.5		82.2		415.8
Depreciation expense	4.7		4.3		2.1		4.1		15.2
First Three Quarters of Fiscal 2016
Segment revenue	$	565.8	$	476.0	$	300.3	$	434.6	$	1,776.7
Operating income	102.2		89.9		90.0		70.7		352.8
Depreciation expense	5.4		5.0		1.5		4.0		15.9
As of the Third Quarter of Fiscal 2017
Accounts receivable, net	$	117.1	$	122.4	$	69.7	$	98.0	$	407.2
Inventories	57.8		106.7		41.5		48.7		254.7
Goodwill	705.9		415.7		317.0		850.7		2,289.3
As of Fiscal Year End 2016
Accounts receivable, net	$	104.7	$	108.3	$	65.5	$	76.3	$	354.8
Inventories	51.3		100.4		31.0		36.1		218.8
Goodwill	663.7		405.1		217.7		791.1		2,077.6

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



	Third Quarter of						First Three Quarters of
	2017			2016			2017			2016
(In millions)
Consolidated segment operating income	$	146.6		$	127.9		$	415.8		$	352.8
Unallocated corporate expense	(23.0		)	(17.1		)	(61.8		)	(54.5		)
Restructuring charges	(1.6		)	(4.0		)	(7.8		)	(11.0		)
Amortization of purchased intangible assets	(40.0		)	(37.3		)	(109.1		)	(117.2		)
Stock-based compensation	(16.1		)	(13.3		)	(45.0		)	(40.0		)
Amortization of acquisition-related inventory step-up	(2.2		)	—			(2.8		)	—
Acquisition and divestiture items	0.3			(0.9		)	(6.1		)	(3.4		)
Executive transition costs	—			—			—			(1.0		)
Consolidated operating income	64.0			55.3			183.2			125.7
Non-operating income (expense), net:	5.6			(3.1		)	19.6			(5.8		)
Consolidated income before taxes	$	69.6		$	52.2		$	202.8		$	119.9