Segment Information & Geographic Data

9 Months Ended

Sep. 28, 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. To the extent applicable, segment operating income excludes purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, and product sourcing diversification 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 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Net sales:
AIT	$	373		$	353		$	1,100		$	1,056
EVM	757			739			2,193			2,025
Total Net sales	$	1,130		$	1,092		$	3,293		$	3,081
Operating income:
AIT⁽¹⁾	$	93		$	81		$	269		$	241
EVM⁽¹⁾	133			117			347			279
Total segment operating income	226			198			616			520
Corporate, eliminations⁽²⁾	(41		)	(36		)	(112		)	(89		)
Total Operating income	$	185		$	162		$	504		$	431


(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, exit and restructuring costs, and product sourcing diversification 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				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
North America	$	591	$	542	$	1,641	$	1,483
EMEA	346		348		1,082		1,034
Asia-Pacific	133		140		399		389
Latin America	60		62		171		175
Total Net sales	$	1,130	$	1,092	$	3,293	$	3,081