Segment Information

3 Months Ended

Mar. 29, 2024

Segment Reporting [Abstract]

Segment Information

NOTE 7. SEGMENT INFORMATION

Our Chief Executive Officer, who is our CODM, views and evaluates operations based on the results of our reportable operating segments under our management reporting system.

Our reportable segments are described below:

•Architects, Engineers, Construction and Owners (“AECO”). This segment primarily provides software solutions that sell primarily through a direct channel to customers in the construction industry.

•Field Systems. This segment primarily provides hardware and associated software solutions that sell primarily through dealer partner channels.

•Transportation and Logistics (“T&L”). This segment primarily provides solutions for customers working in long haul trucking and freight shipper markets.

The following reporting segment tables reflect the results of our reportable operating segments under our management reporting system. This is consistent with the way the CODM evaluates each of the segment’s performance and allocates resources.

	Reporting Segments
	AECO		Field Systems		T&L		Total
(In millions)
First Quarter of 2024
Segment revenue	$	339.1	$	419.2	$	195.0	$	953.3
Segment operating income	126.7		98.3		36.3		261.3
First Quarter of 2023
Segment revenue	$	288.1	$	479.9	$	147.4	$	915.4
Segment operating income	95.4		137.4		20.3		253.1

	Reporting Segments
	AECO		Field Systems		T&L		Total
(In millions)
As of the end of the First Quarter of 2024
Accounts receivable, net	$	163.3	$	295.2	$	174.5	$	633.0
Inventories	1.2		200.5		28.3		230.0
Goodwill	1,984.0		957.2		2,254.5		5,195.7
As of Year End 2023
Accounts receivable, net	$	222.5	$	309.8	$	174.3	$	706.6
Inventories	3.2		202.7		29.8		235.7
Goodwill	1,996.9		1,063.5		2,290.2		5,350.6

A reconciliation of our condensed consolidated segment operating income to condensed consolidated income before income taxes was as follows: 

	First Quarter of
	2024		2023
(In millions)
Consolidated segment operating income	$	261.3	$	253.1
Unallocated general corporate expenses	(26.9)		(27.0)
Amortization of purchased intangible assets	(54.5)		(34.7)
Acquisition / divestiture items	(23.9)		(7.0)
Stock-based compensation / deferred compensation	(38.8)		(35.4)
Restructuring and other costs	(8.0)		(12.0)
Consolidated operating income	109.2		137.0
Total non-operating (expense) income, net	(36.2)		23.6
Consolidated income before taxes	$	73.0	$	160.6

The disaggregation of revenue by geography is summarized in the tables below. Revenue is defined as revenue from external customers attributed to countries based on the location of the customer and is consistent with the Reporting Segment tables above.

	Reporting Segments
	AECO		Field Systems		T&L		Total
(In millions)
First Quarter of 2024
North America	$	193.1	$	182.0	$	119.7	$	494.8
Europe	100.0		140.5		56.7		297.2
Asia Pacific	35.0		65.0		5.7		105.7
Rest of World	11.0		31.7		12.9		55.6
Total segment revenue	$	339.1	$	419.2	$	195.0	$	953.3
First Quarter of 2023
North America	$	167.9	$	198.5	$	115.4	$	481.8
Europe	84.0		160.2		23.6		267.8
Asia Pacific	25.5		76.1		1.5		103.1
Rest of World	10.7		45.1		6.9		62.7
Total segment revenue	$	288.1	$	479.9	$	147.4	$	915.4

Total revenue in the United States as included in the Condensed Consolidated Statements of Income was $456.9 million and $437.5 million for the first quarter of 2024 and 2023. No single customer or country other than the United States accounted for 10% or more of our total revenue.