Segment Information & Geographic Data

6 Months Ended

Jul. 03, 2021

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 business acquisition 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.

Effective January 1, 2021, the retail solutions offering moved from our AIT segment into our EVM segment contemporaneous with a change in our organizational structure and management of the business. Prior period results have been revised to conform to the current segment presentation. This change does not have an impact on the Consolidated Financial Statements.

Financial information by segment is presented as follows (in millions):

	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales:
AIT	$	421	$	273	$	857	$	628
EVM	959		683		1,873		1,380
Total segment Net sales	1,380		956		2,730		2,008
Corporate, eliminations(1)	(3)		—		(6)		—
Total Net sales	$	1,377	$	956	$	2,724	$	2,008
Operating income:
AIT(2)	$	97	$	52	$	206	$	134
EVM(2)	183		89		376		184
Total segment operating income	280		141		582		318
Corporate, eliminations(1)	(33)		(22)		(63)		(48)
Total Operating income	$	247	$	119	$	519	$	270

(1)To the extent applicable, amounts included in Corporate, eliminations consist of business acquisition 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.

(2)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.

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
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
North America	$	707	$	502	$	1,380	$	1,021
EMEA	464		306		954		694
Asia-Pacific	137		110		257		207
Latin America	69		38		133		86
Total Net sales	$	1,377	$	956	$	2,724	$	2,008