Segment Information

9 Months Ended

Sep. 27, 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)
Third Quarter of 2024
Segment revenue	$	306.0	$	374.6	$	195.2	$	875.8
Segment operating income	89.0		123.7		41.0		253.7
Third Quarter of 2023
Segment revenue	$	269.6	$	495.4	$	192.3	$	957.3
Segment operating income	77.8		165.0		33.6		276.4
First Three Quarters of 2024
Segment revenue	$	944.8	$	1,173.1	$	582.0	$	2,699.9
Segment operating income	294.8		331.8		113.2		739.8
First Three Quarters of 2023
Segment revenue	$	821.8	$	1,515.9	$	528.6	$	2,866.3
Segment operating income	235.6		478.3		80.6		794.5

	Reporting Segments
	AECO		Field Systems		T&L		Total
(In millions)
As of the end of the Third Quarter of 2024
Accounts receivable, net	$	154.5	$	260.9	$	110.2	$	525.6
Inventories	1.0		190.8		0.3		192.1
Goodwill	2,019.8		969.2		2,152.8		5,141.8
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: 

	Third Quarter of				First Three Quarters of
	2024		2023		2024		2023
(In millions)
Consolidated segment operating income	$	253.7	$	276.4	$	739.8	$	794.5
Unallocated general corporate expenses	(28.9)		(25.4)		(86.2)		(86.4)
Amortization of purchased intangible assets	(45.4)		(58.9)		(154.4)		(155.7)
Acquisition / divestiture items	(17.4)		(22.0)		(75.2)		(55.5)
Stock-based compensation / deferred compensation	(38.1)		(37.9)		(115.0)		(115.4)
Restructuring and other costs	(7.5)		(10.9)		(21.8)		(29.6)
Consolidated operating income	116.4		121.3		287.2		351.9
Total non-operating (expense) income, net	(43.3)		(41.9)		1,620.9		(54.4)
Consolidated income before taxes	$	73.1	$	79.4	$	1,908.1	$	297.5

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)
Third Quarter of 2024
North America	$	197.5	$	210.0	$	117.0	$	524.5
Europe	78.0		88.9		65.7		232.6
Asia Pacific	24.1		48.2		2.9		75.2
Rest of World	6.4		27.5		9.6		43.5
Total segment revenue	$	306.0	$	374.6	$	195.2	$	875.8
Third Quarter of 2023
North America	$	159.6	$	238.1	$	120.7	$	518.4
Europe	66.7		134.7		59.3		260.7
Asia Pacific	24.6		79.0		2.3		105.9
Rest of World	18.7		43.6		10.0		72.3
Total segment revenue	$	269.6	$	495.4	$	192.3	$	957.3
First Three Quarters of 2024
North America	$	582.1	$	592.4	$	351.6	$	1,526.1
Europe	249.3		325.6		186.3		761.2
Asia Pacific	86.1		172.3		11.9		270.3
Rest of World	27.3		82.8		32.2		142.3
Total segment revenue	$	944.8	$	1,173.1	$	582.0	$	2,699.9
First Three Quarters of 2023
North America	$	486.1	$	687.1	$	352.6	$	1,525.8
Europe	217.9		449.2		144.1		811.2
Asia Pacific	72.8		241.2		5.6		319.6
Rest of World	45.0		138.4		26.3		209.7
Total segment revenue	$	821.8	$	1,515.9	$	528.6	$	2,866.3

Total revenue in the United States, as included in the Condensed Consolidated Statements of Income, was $483.3 million and $478.6 million for the third quarter of 2024 and 2023, and $1,407.1 million and $1,401.2 million for the first three quarters of 2024 and 2023. No single customer or country other than the United States accounted for 10% or more of our total revenue.