Segment Information & Geographic Data

The segment information reflects the operating results of the Company’s business segments. In January 2018, The Company changed the names of the reportable segments to better reflect business operations. The Company has two reportable segments; Asset Intelligence & Tracking (“AIT”), formerly Legacy Zebra and Enterprise Visibility & Mobility (“EVM”), formerly Enterprise.


•	The AIT segment consists of barcode and card printing, location solutions, supplies, and services


•	The EVM segment consists of mobile computing, data capture, and RFID

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 between the Company’s segments. The chief operating decision maker uses adjusted operating income to evaluate segment profitability.

The accounting policies of the segments are in accordance with Note 2, Summary of Significant Accounting Policies. The chief operating decision maker does not use total assets by segment to make decisions regarding resources, therefore the total asset disclosure by segment has not been included.

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



	Year Ended December 31,
	2017			2016			2015
Net sales:
AIT	$	1,311		$	1,247		$	1,286
EVM	2,414			2,337			2,380
Total segment net sales	3,725			3,584			3,666
Corporate, eliminations⁽¹⁾	(3		)	(10		)	(16		)
Total net sales	$	3,722		$	3,574		$	3,650
Operating income:
AIT	$	260		$	240		$	258
EVM	315			286			236
Total segment operating income	575			526			494
Corporate, eliminations⁽²⁾	(253		)	(446		)	(457		)
Total operating income	$	322		$	80		$	37


(1)	Amounts included in Corporate, eliminations consist of purchase accounting adjustments related to the Acquisition.


(2)	Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments; amortization of intangible assets, acquisition/integration costs, impairment of goodwill and other intangibles, and exit and restructuring costs.

Information regarding the Company’s operations by geographic area is contained in the following table. These amounts are reported in the geographic area of the destination of the final sale. We manage our business based on regions rather than by individual countries.

Geographic data for net sales is as follows (in millions):



	Year Ended December 31,
	2017		2016		2015
Europe, Middle East, and Africa	$	1,221	$	1,138	$	1,194
Latin America	235		214		219
Asia-Pacific	468		483		463
Total International	1,924		1,835		1,876
North America	1,798		1,739		1,774
Total net sales	$	3,722	$	3,574	$	3,650

Geographic data for long-lived assets, defined as property, plant and equipment is as follows (in millions):



	Year Ended December 31,
	2017		2016		2015
Europe, Middle East, and Africa	$	14	$	13	$	10
Latin America	3		3		3
Asia-Pacific	9		9		10
Total International	26		25		23
North America	238		267		275
Total long-lived assets	$	264	$	292	$	298

Net sales by country that are greater than 10% of total net sales are as follows (in millions):



	Year Ended December 31,
	2017		2016		2015
United States	$	1,984	$	1,950	$	2,045
United Kingdom	1,196		1,065		1,102
Singapore	454		362		175
Other	88		197		328
Total net sales	$	3,722	$	3,574	$	3,650

Net sales by country are determined by the country from where the products are invoiced when they leave the Company’s warehouses. Generally, our United States sales company serves North America and Latin America; United Kingdom sales company serves Europe, Middle East, and Africa; and our Singapore sales company serves Asia-Pacific.

Our net sales to significant customers as a percentage of the total Company’s net sales by segment were as follows:



	Year Ended December 31,
	2017						2016						2015
	AIT		EVM		Total		AIT		EVM		Total		AIT		EVM		Total
Customer A	6.3	%	15.0	%	21.3	%	5.9	%	14.2	%	20.1	%	5.5	%	13.9	%	19.4	%
Customer B	5.3	%	8.9	%	14.2	%	5.0	%	8.2	%	13.2	%	4.6	%	8.1	%	12.7	%
Customer C	6.2	%	7.0	%	13.2	%	5.3	%	7.1	%	12.4	%	5.2	%	6.4	%	11.6	%

All three of the above customers are distributors and not end-users. No other customer accounted for 10% or more of total net sales during the years presented.

There are three customers at December 31, 2017 and December 31, 2016 that each accounted for more than 10% of outstanding accounts receivable. In 2017, the three largest customers accounted for 19.5%, 14.0%, and 11.7%, respectively of accounts receivable while in 2016, the three largest customers accounted for 19.9%, 14.0% and 12.9%, respectively.