Segment Information & Geographic Data

3 Months Ended

Apr. 01, 2023

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. 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
	April 1, 2023		April 2, 2022
Net sales:
AIT	$	491	$	394
EVM	914		1,038
Total Net sales	$	1,405	$	1,432
Operating income:
AIT(2)	$	132	$	60
EVM(2)	130		189
Total segment operating income	262		249
Corporate eliminations(1)	(37)		(37)
Total Operating income	$	225	$	212

(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.

(2)AIT and EVM segment operating income includes depreciation and share-based compensation expense. The amounts of depreciation and share-based compensation expense 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.

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

	Three Months Ended
	April 1, 2023		April 2, 2022
North America	$	725	$	699
EMEA	443		500
Asia-Pacific	154		149
Latin America	83		84
Total Net sales	$	1,405	$	1,432