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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2016
Text Block [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
To achieve distribution, marketing, production and technology advantages, the Company manages its operations in the following four segments:

•
Engineering and Construction: This segment primarily serves customers working in architecture, engineering, construction, geospatial and government. Within this segment our most substantial product portfolios are focused on civil engineering and construction, building construction, and geospatial.

•
Field Solutions: This segment provides solutions for the farming, government and consumer markets, with its products focused on agriculture and geographic information systems (GIS).

•
Mobile Solutions: This segment provides solutions that enable end-users to monitor and manage their mobile work, mobile workers and mobile assets in the areas of transportation and logistics and field services management.

•
Advanced Devices: The various operations that comprise this segment are aggregated on the basis that these operations do not exceed 10% of the Company’s total revenue, operating income or assets. This segment is comprised of the Embedded Technologies, Timing, Applanix, Military and Advanced Systems and ThingMagic businesses.

The Company’s chief operating decision maker (CODM), its Chief Executive Officer, evaluates each of its segment’s performance and allocates resources based on segment operating income before income taxes and some corporate allocations. The Company and each of its segments employ consistent accounting policies. In each of its segments the Company sells many individual products. For this reason, it is impracticable to segregate and identify revenue for each of the individual products or group of products.
The following table presents revenue, operating income, depreciation expense and identifiable assets for the four segments. Operating income is revenue less cost of sales and operating expense, excluding general corporate expense, acquisition costs, amortization of purchased intangible assets, restructuring charges, stock-based compensation and executive transition costs. The identifiable assets that the CODM views by segment are accounts receivable, inventories and goodwill.
 
Reporting Segments
 
Engineering
and
Construction
 
Field
Solutions
 
Mobile
Solutions
 
Advanced
Devices
 
Total
(Dollars in millions)
 
 
 
 
 
 
 
 
 
Third Quarter of Fiscal 2016
 
 
 
 
 
 
 
 
 
Revenue
$
332.4

 
$
77.9

 
$
138.5

 
$
35.3

 
$
584.1

Operating income
69.1

 
22.1

 
22.4

 
14.3

 
127.9

       Depreciation expense
3.2

 
0.3

 
1.4

 
0.2

 
5.1

Third Quarter of Fiscal 2015
 
 
 
 
 
 
 
 
 
Revenue
$
326.4

 
$
73.5

 
$
131.6

 
$
30.8

 
$
562.3

Operating income
68.8

 
19.5

 
23.1

 
10.8

 
122.2

       Depreciation expense
3.5

 
0.3

 
1.4

 
0.1

 
5.3

First Three Quarters of Fiscal 2016
 
 
 
 
 
 
 
 
 
Segment revenue
$
993.4

 
$
271.0

 
$
412.9

 
$
99.4

 
$
1,776.7

Operating income
175.0

 
81.5

 
60.2

 
36.1

 
352.8

       Depreciation expense
10.4

 
0.9

 
4.1

 
0.5

 
15.9

First Three Quarters of Fiscal 2015
 
 
 
 
 
 
 
 
 
Segment revenue
$
964.2

 
$
275.9

 
$
388.1

 
$
102.5

 
$
1,730.7

Operating income
166.3

 
85.0

 
62.5

 
37.1

 
350.9

       Depreciation expense
10.6

 
0.9

 
4.0

 
0.4

 
15.9

As of the Third Quarter of Fiscal 2016
 
 
 
 
 
 
 
 
 
Accounts receivable
$
214.1

 
$
59.3

 
$
71.7

 
$
24.1

 
$
369.2

Inventories
146.7

 
32.6

 
30.9

 
14.1

 
224.3

Goodwill
1,149.3

 
126.6

 
814.8

 
20.4

 
2,111.1

As of Fiscal Year End 2015
 
 
 
 
 
 
 
 
 
Accounts receivable
$
215.9

 
$
57.1

 
$
69.6

 
$
19.3

 
$
361.9

Inventories
178.0

 
36.0

 
30.4

 
16.7

 
261.1

Goodwill
1,140.1

 
125.7

 
820.7

 
19.9

 
2,106.4


A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows: 
 
Third Quarter of
 
First Three Quarters of
 
2016
 
2015
 
2016
 
2015
(Dollars in millions)
 
 
 
 
 
 
 
Consolidated segment operating income
$
127.9

 
$
122.2

 
$
352.8

 
$
350.9

Unallocated corporate expense (1)
(18.0
)
 
(19.7
)
 
(58.9
)
 
(60.1
)
Restructuring charges (2)
(4.0
)
 
(3.0
)
 
(11.0
)
 
(9.8
)
Stock-based compensation
(13.3
)
 
(12.8
)
 
(40.0
)
 
(37.3
)
Amortization of purchased intangible assets
(37.3
)
 
(40.7
)
 
(117.2
)
 
(122.2
)
Consolidated operating income
55.3

 
46.0

 
125.7

 
121.5

Non-operating income (expense), net:
(3.1
)
 
(2.5
)
 
(5.8
)
 
2.0

Consolidated income before taxes
$
52.2

 
$
43.5

 
$
119.9

 
$
123.5


(1) Unallocated corporate expense includes general corporate expense, acquisition costs and executive transition costs.
(2) Restructuring charges primarily consist of severance and benefits, resulting from employee headcount reductions in connection with the Company's restructuring programs related to decisions to streamline processes and reduce the cost structure. As of the end of the third quarter of fiscal 2016, the Company's restructuring liability was $2.6 million, which was expected to be settled by the third quarter of fiscal 2017. Restructuring liabilities are reported within Other current liabilities on the Condensed Consolidated Balance Sheets.