Segment Information

6 Months Ended

Jul. 01, 2017

The Company has two reportable segments: Legacy Zebra and Enterprise. The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company’s segments. The chief operating decision maker uses adjusted operating income to assess segment profitability. Adjusted operating income excludes purchase accounting adjustments, amortization, acquisition, integration and exit and restructuring costs. Segment assets are not reviewed by the Company’s chief operating decision maker and therefore are not disclosed below.

Financial information by segment is presented as follows (in millions):



	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Net sales:
Legacy Zebra	$	313		$	305		$	635		$	619
Enterprise	584			577			1,128			1,115
Total segment	897			882			1,763			1,734
Corporate, eliminations ⁽¹⁾	(1		)	(3		)	(2		)	(6		)
Total	$	896		$	879		$	1,761		$	1,728
Operating income (loss):
Legacy Zebra	$	63		$	57		$	130		$	128
Enterprise	68			69			123			111
Total segment	131			126			253			239
Corporate, eliminations ⁽²⁾	(73		)	(103		)	(155		)	(206		)
Total	$	58		$	23		$	98		$	33


(1)	Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments related to the Acquisition.


(2)	Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments, amortization expense, acquisition and integration expenses, and exit and restructuring costs.