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Segment Financial Data
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Financial Data

Note 21. 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 fourth quarter 2020 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 wholesale distributor of low-voltage security products including intrusion, access control and video products and participates significantly in

the broader related markets of smart home, fire, access control, power, audio, ProAV, networking, communications, wire and cable, enterprise connectivity, and structured wiring products.

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.

 

 

 

Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Total Products & Solutions revenue

 

$

2,488

 

 

$

2,487

 

 

$

2,474

 

Less: Intersegment revenue

 

 

367

 

 

 

312

 

 

 

305

 

External Products & Solutions revenue

 

 

2,121

 

 

 

2,175

 

 

 

2,169

 

External ADI Global Distribution revenue

 

 

2,950

 

 

 

2,813

 

 

 

2,658

 

Total revenue

 

$

5,071

 

 

$

4,988

 

 

$

4,827

 

 

 

 

 

Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Operating profit

 

 

 

 

 

 

 

 

 

 

 

 

Products & Solutions

 

$

407

 

 

$

327

 

 

$

591

 

ADI Global Distribution

 

 

194

 

 

 

210

 

 

 

205

 

Corporate

 

 

(290

)

 

 

(279

)

 

 

(303

)

Total

 

$

311

 

 

$

258

 

 

$

493

 

 

 

 

 

Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

Products & Solutions

 

$

63

 

 

$

62

 

 

$

48

 

ADI Global Distribution

 

 

12

 

 

 

10

 

 

 

10

 

Corporate

 

 

11

 

 

 

8

 

 

 

8

 

Total

 

$

86

 

 

$

80

 

 

$

66

 

 

 

 

 

Years Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Products & Solutions

 

$

41

 

 

$

71

 

 

$

61

 

ADI Global Distribution

 

 

15

 

 

 

5

 

 

 

5

 

Corporate

 

 

14

 

 

 

19

 

 

 

15

 

Total

 

$

70

 

 

$

95

 

 

$

81

 

 

 

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.