Segment Information & Geographic Data

12 Months Ended

Dec. 31, 2023

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, 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 of 2023, 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):

	Year Ended December 31,
	2023		2022		2021
Net sales:
AIT	$	1,651	$	1,837	$	1,734
EVM	2,933		3,944		3,899
Total segment Net sales	4,584		5,781		5,633
Corporate (1)	—		—		(6)
Total Net sales	$	4,584	$	5,781	$	5,627
Operating income:
AIT(2)	$	346	$	361	$	386
EVM(2)	343		711		746
Total segment operating income	689		1,072		1,132
Corporate (1)	(208)		(543)		(153)
Total Operating income	$	481	$	529	$	979

(1)To the extent applicable, amounts included in Corporate 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.

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, 2023, 2022 and 2021. The approximate percentage of our segment and Company total Net sales to these customers were as follows:

	Year Ended December 31,
	2023						2022						2021
	AIT		EVM		Total		AIT		EVM		Total		AIT		EVM		Total
Customer A	5	%	13	%	18	%	7	%	14	%	21	%	7	%	15	%	22	%
Customer B	8	%	6	%	14	%	6	%	9	%	15	%	5	%	9	%	14	%
Customer C	4	%	8	%	12	%	4	%	9	%	13	%	3	%	10	%	13	%

These customers accounted for 22%, 10% and 17%, respectively, of accounts receivable as of December 31, 2023, and 22%, 20% and 18%, respectively, of accounts receivable as of December 31, 2022. No other customer accounted for more than 10% of total Net sales during the years ended December 31, 2023, 2022 or 2021, or more than 10% of outstanding accounts receivable as of December 31, 2023 or 2022.

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.

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

	Year Ended December 31,
	2023		2022		2021
North America	$	2,405	$	2,919	$	2,819
EMEA	1,414		1,920		1,976
Asia-Pacific	481		609		543
Latin America	284		333		289
Total Net sales	$	4,584	$	5,781	$	5,627

The U.S. and Germany were the only countries that accounted for more than 10% of the Company’s net sales in 2023, 2022 and 2021. Net sales during these years were as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
U.S.	$	2,330	$	2,840	$	2,784
Germany	682		949		901
Other	1,572		1,992		1,942
Total Net sales	$	4,584	$	5,781	$	5,627

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

	Year Ended December 31,
	2023		2022		2021
North America	$	338	$	336	$	290
EMEA	61		58		68
Asia-Pacific	73		35		39
Latin America	6		5		6
Total long-lived assets	$	478	$	434	$	403

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 U.S.