Segment Information

The Company’s operations consist of two reportable segments: Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”). The reportable segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) to assess segment performance and allocate resources among the Company’s segments. The CODM reviews adjusted operating income to assess segment profitability. Adjusted operating income excludes purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, and exit and restructuring costs. Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below.

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



	Three Months Ended						Nine Months Ended
	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Net sales:
AIT	$	353		$	325		$	1,056		$	960
EVM	739			611			2,025			1,739
Total segment net sales	1,092			936			3,081			2,699
Corporate, eliminations ⁽¹⁾	—			(1		)	—			(3		)
Total net sales	$	1,092		$	935		$	3,081		$	2,696
Operating income:
AIT⁽³⁾	$	81		$	64		$	241		$	199
EVM⁽³⁾	117			86			279			204
Total segment operating income	198			150			520			403
Corporate, eliminations ⁽²⁾	(36		)	(59		)	(89		)	(214		)
Total operating income	$	162		$	91		$	431		$	189


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


(2)	Amounts included in Corporate, eliminations consist of purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, and exit and restructuring costs.

(3)

During 2018, the Company revised its methodology for allocating certain operating expenses across its two reportable segments to more accurately reflect where these operating costs are being incurred. The reallocations relate primarily to facilities, information technology, marketing and human resources expenses. All periods are presented on a comparable basis and reflect these changes. There was no impact to the Consolidated Financial Statements as a result of these reallocations.

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.

Net sales to customers by geographic region were as follows (in millions):



	Three Months Ended				Nine Months Ended
	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
Europe, Middle East and Africa	$	348	$	306	$	1,034	$	872
Latin America	62		58		175		168
Asia-Pacific	140		119		389		350
North America	542		452		1,483		1,306
Total Net sales	$	1,092	$	935	$	3,081	$	2,696