Segment Information & Geographic Data

6 Months Ended

Jul. 02, 2022

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, as well as certain other non-recurring costs (such as the Settlement and related costs in the current year). Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below.

Effective January 1, 2022, the location solutions offering, which provides a range of RTLS and services that generate on-demand information about the physical location and status of assets, equipment, and people, moved from our AIT segment into our EVM segment contemporaneous with a change in our organizational structure and management of the business. We have reported our results reflecting this change, including historical periods, on a comparable basis. This change did not have an impact to the Consolidated Financial Statements.

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

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Net sales:
AIT	$	446	$	414	$	840	$	843
EVM	1,022		966		2,060		1,887
Total segment Net sales	1,468		1,380		2,900		2,730
Corporate, eliminations(1)	—		(3)		—		(6)
Total Net sales	$	1,468	$	1,377	$	2,900	$	2,724
Operating income:
AIT(2)	$	97	$	100	$	157	$	211
EVM(2)	181		180		370		371
Total segment operating income	278		280		527		582
Corporate eliminations(1)	(423)		(33)		(460)		(63)
Total Operating (loss) income	$	(145)	$	247	$	67	$	519

(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, as well as certain other non-recurring costs (such as the Settlement and related costs in the current year).

(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 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.

Geographic data for Net sales is as follows (in millions):

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
North America	$	714	$	707	$	1,413	$	1,380
EMEA	521		464		1,021		954
Asia-Pacific	152		137		301		257
Latin America	81		69		165		133
Total Net sales	$	1,468	$	1,377	$	2,900	$	2,724