Segment Information & Geographic Data

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information & Geographic Data

Segment Information & Geographic Data

Segment results

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, retail solutions product line, which provides a range of physical inventory management solutions with application in the retail industry, including solutions for full store physical inventories, cycle counts and analytics, 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 did not have an impact on the Consolidated Financial Statements.

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

	Year Ended December 31,
	2021		2020		2019
Net sales:
AIT	$	1,687	$	1,392	$	1,447
EVM	3,946		3,063		3,038
Total segment Net sales	5,633		4,455		4,485
Corporate, eliminations(1)	(6)		(7)		—
Total Net sales	$	5,627	$	4,448	$	4,485
Operating income:
AIT(2)	$	374	$	318	$	351
EVM(2)	758		470		487
Total segment operating income	1,132		788		838
Corporate, eliminations(1)	(153)		(137)		(146)
Total Operating income	$	979	$	651	$	692

(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.

Sales to significant customers

The Company has three customers, who are distributors of the Company’s products and solutions, that individually accounted for more than 10% of total Company Net sales during the years ended December 31, 2021, 2020 and 2019. The approximate percentage of our segment and Company total Net sales to these customers were as follows:

	Year Ended December 31,
	2021						2020						2019
	AIT		EVM		Total		AIT		EVM		Total		AIT		EVM		Total
Customer A	7.3	%	15.0	%	22.3	%	6.5	%	14.2	%	20.7	%	6.1	%	10.5	%	16.6	%
Customer B	5.1	%	8.5	%	13.6	%	4.9	%	9.0	%	13.9	%	4.7	%	9.0	%	13.7	%
Customer C	3.1	%	9.5	%	12.6	%	4.8	%	12.9	%	17.7	%	5.3	%	13.0	%	18.3	%

These customers accounted for 22.7%, 13.4%, and 14.8%, respectively, of accounts receivable as of December 31, 2021, and 20.4%, 6.7% and 13.6%, respectively, of accounts receivable as of December 31, 2020. No other customer accounted for more than 10% of total Net sales during the years ended December 31, 2021, 2020 or 2019, or more than 10% of outstanding accounts receivables as of December 31, 2021 or 2020.

Geographic data

Information regarding the Company’s operations by geographic area is contained in the following tables. Net sales amounts are attributed to geographic area based on customer location. We manage our business based on regions rather than by individual countries.

Net sales by region were as follows (in millions):

	Year Ended December 31,
	2021		2020		2019
North America	$	2,819	$	2,319	$	2,261
EMEA	1,976		1,495		1,462
Asia-Pacific	543		439		518
Latin America	289		195		244
Total Net sales	$	5,627	$	4,448	$	4,485

The United States and Germany were the only countries that accounted for more than 10% of the Company’s net sales in 2021, 2020, and 2019. Net sales during these years were as follows (in millions):

	Year Ended December 31,
	2021		2020		2019
United States	$	2,784	$	2,291	$	2,243
Germany	901		595		523
Other	1,942		1,562		1,719
Total Net sales	$	5,627	$	4,448	$	4,485

Geographic data for long-lived assets is as follows (in millions):

	Year Ended December 31,
	2021		2020		2019
North America	$	290	$	289	$	280
EMEA	68		68		39
Asia-Pacific	39		45		40
Latin America	6		7		7
Total long-lived assets	$	403	$	409	$	366

Long-lived assets are defined by the Company as property, plant and equipment and ROU assets. Primarily all of the Company’s long-lived assets in the North America region are located in the United States.