Segment Information

3 Months Ended

Mar. 30, 2019

15 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):



	Three Months Ended
	March 30, 2019			March 31, 2018
Net sales:
AIT	$	357		$	352
EVM	709			625
Total Net sales	$	1,066		$	977
Operating income:
AIT⁽¹⁾	$	92		$	92
EVM⁽¹⁾	101			80
Total segment Operating income	193			172
Corporate, eliminations⁽²⁾	(34		)	(28		)
Total Operating income	$	159		$	144


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


(2)	To the extent applicable, amounts included in Corporate, eliminations consist of purchase accounting adjustments, amortization of intangible assets, acquisition and 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):



	Three Months Ended
	March 30, 2019		March 31, 2018
North America	$	510	$	457
Europe, Middle East and Africa	376		349
Asia-Pacific	125		115
Latin America	55		56
Total Net sales	$	1,066	$	977