Segment Information & Geographic Data

6 Months Ended

Jun. 29, 2019

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						Six Months Ended
	June 29, 2019			June 30, 2018			June 29, 2019			June 30, 2018
Net sales:
AIT	$	370		$	351		$	727		$	703
EVM	727			661			1,436			1,286
Total Net sales	$	1,097		$	1,012		$	2,163		$	1,989
Operating income:
AIT⁽¹⁾	$	84		$	77		$	176		$	169
EVM⁽¹⁾	113			73			214			153
Total segment Operating income	197			150			390			322
Corporate, eliminations⁽²⁾	(37		)	(25		)	(71		)	(53		)
Total Operating income	$	160		$	125		$	319		$	269


(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				Six Months Ended
	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
North America	$	540	$	484	$	1,050	$	941
Europe, Middle East and Africa	360		337		736		686
Asia-Pacific	141		134		266		249
Latin America	56		57		111		113
Total Net sales	$	1,097	$	1,012	$	2,163	$	1,989