Segment Information & Geographic Data

6 Months Ended

Jun. 27, 2020

Segment Reporting [Abstract]

Segment Information & Geographic Data

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. 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				Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Net sales:
AIT	$	275	$	370	$	646	$	727
EVM	681		727		1,362		1,436
Total Net sales	$	956	$	1,097	$	2,008	$	2,163
Operating income:
AIT(1)	$	48	$	84	$	137	$	176
EVM(1)	93		113		181		214
Total segment operating income	141		197		318		390
Corporate, eliminations(2)	(22)		(37)		(48)		(71)
Total Operating income	$	119	$	160	$	270	$	319

(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. Net sales amounts are attributed to geographic area based on customer location. 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 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
North America	$	502	$	540	$	1,021	$	1,050
EMEA	306		360		694		736
Asia-Pacific	110		141		207		266
Latin America	38		56		86		111
Total Net sales	$	956	$	1,097	$	2,008	$	2,163