Segment Information & Geographic Data

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):



	Year Ended December 31,
	2018			2017			2016
Net sales:
AIT	$	1,423		$	1,311		$	1,247
EVM	2,795			2,414			2,337
Total segment Net sales	4,218			3,725			3,584
Corporate, eliminations⁽¹⁾	—			(3		)	(10		)
Total Net sales	$	4,218		$	3,722		$	3,574
Operating income:
AIT⁽²⁾⁽³⁾	$	325		$	274		$	281
EVM⁽²⁾⁽³⁾	404			301			245
Total segment operating income	729			575			526
Corporate, eliminations⁽⁴⁾	(119		)	(253		)	(446		)
Total Operating income	$	610		$	322		$	80


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

(2)

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 which reclassified operating expenses from AIT to EVM of $14 million and $41 million for the years ended December 31, 2017 and 2016, respectively. There was no impact to the Consolidated Financial Statements as a result of these reallocations.


(3)	AIT and EVM segment operating income includes depreciation expense and share-based compensation expense. The amounts of depreciation expense and share-based compensation attributable to AIT and EVM are proportionate to each segment’s Net sales.


(4)	Amounts included in Corporate, eliminations consist of purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, 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,
	2018		2017		2016
North America	$	2,041	$	1,798	$	1,739
Europe, Middle East, and Africa	1,409		1,221		1,138
Asia-Pacific	520		468		483
Latin America	248		235		214
Total Net sales	$	4,218	$	3,722	$	3,574

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



	Year Ended December 31,
	2018		2017		2016
North America	$	225	$	238	$	267
Europe, Middle East, and Africa	14		14		13
Asia-Pacific	7		9		9
Latin America	3		3		3
Total long-lived assets	$	249	$	264	$	292

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



	Year Ended December 31,
	2018		2017		2016
United States	$	2,247	$	1,984	$	1,950
United Kingdom	1,403		1,196		1,065
Singapore	508		454		362
Other	60		88		197
Total Net sales	$	4,218	$	3,722	$	3,574

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,
	2018						2017						2016
	AIT		EVM		Total		AIT		EVM		Total		AIT		EVM		Total
Customer A	6.2	%	14.1	%	20.3	%	6.3	%	15.0	%	21.3	%	5.9	%	14.2	%	20.1	%
Customer B	5.6	%	10.1	%	15.7	%	5.3	%	8.9	%	14.2	%	5.0	%	8.2	%	13.2	%
Customer C	6.2	%	7.9	%	14.1	%	6.2	%	7.0	%	13.2	%	5.3	%	7.1	%	12.4	%

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, 2018 and December 31, 2017 that each accounted for more than 10% of outstanding accounts receivable. In 2018, the three largest customers accounted for 23.0%, 16.9%, and 14.6%, respectively of accounts receivable while in 2017, the three largest customers accounted for 19.5%, 14.0% and 11.7%, respectively.