Segment Financial Data

6 Months Ended

Jul. 02, 2022

Segment Reporting [Abstract]

Segment Financial Data

Note 4. Segment Financial Data

The Company monitors its business operations through two operating segments: Products & Solutions and ADI Global Distribution.

These operating segments follow the same accounting policies used for our consolidated financial statements. We evaluate a segment's performance on a U.S. GAAP basis based primarily upon operating income before corporate expenses.

Corporate assets consist primarily of cash, investments, prepaid expenses, current and deferred taxes and property, plant and equipment. These items are not allocated to the operating segments. Corporate unallocated expenses primarily include share-based compensation expenses, unallocated pension expense, restructuring charges, acquisition-related costs, and other expenses related to executive, legal, finance, tax, treasury, human resources, information technology, strategy, communications and corporate travel expenses. Additional unallocated amounts primarily include non-operating items such as interest income, interest expense, and other income (expense).

Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance.

The following table represents summary financial data attributable to the segments:

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Net revenue:
Products & Solutions		764		598		1,383		1,204
ADI Global Distribution		922		879		1,809		1,692
Total Net revenue:	$	1,686	$	1,477	$	3,192	$	2,896

	Three Months Ended						Six Months Ended
	July 2, 2022			July 3, 2021			July 2, 2022			July 3, 2021
Income from operations:
Products & Solutions	$	154		$	129		$	307		$	259
ADI Global Distribution		86			66			166			125
Corporate		(54	)		(74	)		(115	)		(133	)
Total Income from operations:	$	186		$	121		$	358		$	251

The Company’s Chief Operating Decision Maker does not use segment assets information to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed.