Segment Financial Data

3 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

Segment Financial Data

Note 4. Segment Financial Data

In May 2020, the Board appointed Jay Geldmacher as President and CEO of the Company. As part of this transition, during the fourth quarter of 2020, the format of the Chief Operating Decision Maker’s reporting package was modified which resulted in changes to how business operations are presented. The Company continues to monitor its business operations through two operating segments, Products & Solutions and ADI Global Distribution. The Company now reports Corporate separately from the two operating segments. The reporting package also includes segment Operating profit, which replaces Segment Adjusted EBITDA as a performance metric.

These changes were designed to better align accountability and authority, give a clearer view into the operational performance of the two segments and increase accountability for management of corporate spending. As a result, the Company recast prior periods to conform with the new presentation.

Products & Solutions—The Products & Solutions business is a leading global provider of products, software solutions and technologies that help homeowners stay connected and in control of their comfort, security and energy use.

ADI Global Distribution—The ADI Global Distribution business is the leading global distributor of low-voltage security products including intrusion, access control and video products and participated significantly in the broader related markets of smart home, fire, access control, power, audio, ProAV, networking, communications, wire and cable, and data communications.

Corporate—Corporate includes headquarter type expenses associated with legal, finance, information technology, human resources, strategy and communications related to the Corporate office as well as supporting the operating segments, but do not relate directly to revenue-generating activities.

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

	Three Months Ended
	April 3,		March 28,
	2021		2020
Revenue
Total Products & Solutions revenue	$	700	$	559
Less: Intersegment revenue		94		84
External Products & Solutions revenue		606		475
External ADI Global Distribution revenue		813		704
Total revenue	$	1,419	$	1,179

	Three Months Ended
	April 3,			March 28,
	2021			2020
Operating profit
Products & Solutions	$	130		$	58
ADI Global Distribution		59			48
Corporate		(59	)		(72	)
Total	$	130		$	34

The Company’s CODM 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.