Segment Information & Geographic Data

6 Months Ended

Jul. 01, 2023

Segment Reporting [Abstract]

Segment Information & Geographic Data

Segment Information & Geographic DataThe 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 costs in the prior year). Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below.

In the second quarter, our advanced location technology solutions business, which is primarily comprised of RFID devices and RTLS offerings, moved from our EVM segment into our AIT segment contemporaneous with a change in our organizational structure and management of the business. We have reported our segment results reflecting this change, including historical periods, on a comparable basis. 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 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Net sales:
AIT	$	459	$	467	$	981	$	878
EVM	755		1,001		1,638		2,022
Total Net sales	$	1,214	$	1,468	$	2,619	$	2,900
Operating income:
AIT(2)	$	114	$	94	$	243	$	150
EVM(2)	122		184		255		377
Total segment operating income	236		278		498		527
Corporate eliminations(1)	(42)		(423)		(79)		(460)
Total Operating income (loss)	$	194	$	(145)	$	419	$	67

(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 costs in the prior year).

(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				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
North America	$	642	$	714	$	1,367	$	1,413
EMEA	374		521		817		1,021
Asia-Pacific	122		152		276		301
Latin America	76		81		159		165
Total Net sales	$	1,214	$	1,468	$	2,619	$	2,900