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Operating Segments and Geographic Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Operating Segments and Geographic Information | Note 5: Operating Segments and Geographic Information We are organized around five global business platforms: Broadcast, Enterprise Connectivity, Industrial Connectivity, Industrial IT, and Network Security. The Network Security platform was formed with our acquisition of Tripwire in January 2015. We have determined that each of the global business platforms represents a reportable segment. The segments design, manufacture, and market a portfolio of signal transmission solutions for mission critical applications used in a variety of end markets, including broadcast, enterprise, and industrial. We sell the products manufactured by our segments principally through distributors or directly to systems integrators, original equipment manufacturers (OEMs), end-users, and installers. Effective January 1, 2015, the key measures of segment profit or loss reviewed by our chief operating decision maker are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues and include revenues that would have otherwise been recorded by acquired businesses as independent entities but were not recognized in our Consolidated Statements of Operations due to the effects of purchase accounting and the associated write-down of acquired deferred revenue to fair value. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory and deferred revenue to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation. The prior period presentation has been updated accordingly. Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. The results of our equity method investment in the Hirschmann JV are analyzed separately from the results of our operating segments, and they are not included in the corporate expense allocation. Operating Segment Information
Broadcast Solutions |  | Years ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Segment revenues |  | $ | 900,637 |  |  | $ | 928,586 |  |  | $ | 679,197 |
Affiliate revenues |  |  | 1,371 |  |  |  | 1,381 |  |  |  | 933 |
Segment EBITDA |  |  | 142,428 |  |  |  | 140,367 |  |  |  | 109,541 |
Depreciation expense |  |  | 17,103 |  |  |  | 16,553 |  |  |  | 18,422 |
Amortization of intangibles |  |  | 50,989 |  |  |  | 50,739 |  |  |  | 46,005 |
Severance, restructuring, and acquisition integration costs |  |  | 39,078 |  |  |  | 48,557 |  |  |  | 12,128 |
Purchase accounting effects of acquisitions |  |  | 132 |  |  |  | 8,574 |  |  |  | 6,550 |
Deferred gross profit adjustments |  |  | 2,446 |  |  |  | 10,777 |  |  |  | 11,337 |
Acquisition of property, plant and equipment |  |  | 27,900 |  |  |  | 17,912 |  |  |  | 10,526 |
Segment assets |  |  | 394,197 |  |  |  | 430,991 |  |  |  | 294,454 |
Enterprise Connectivity Solutions |  | Years ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Segment revenues |  | $ | 445,243 |  |  | $ | 455,795 |  |  | $ | 493,129 |
Affiliate revenues |  |  | 5,322 |  |  |  | 8,467 |  |  |  | 9,823 |
Segment EBITDA |  |  | 71,508 |  |  |  | 66,035 |  |  |  | 62,165 |
Depreciation expense |  |  | 11,783 |  |  |  | 13,744 |  |  |  | 12,469 |
Amortization of intangibles |  |  | 543 |  |  |  | 650 |  |  |  | 543 |
Severance, restructuring, and acquisition integration costs |  |  | 723 |  |  |  | 3,318 |  |  |  | 400 |
Purchase accounting effects of acquisitions |  |  | 52 |  |  |  | 608 |  |  |  | — |
Acquisition of property, plant and equipment |  |  | 9,788 |  |  |  | 12,574 |  |  |  | 11,749 |
Segment assets |  |  | 190,298 |  |  |  | 206,377 |  |  |  | 223,073 |
Industrial Connectivity Solutions |  | Years ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Segment revenues |  | $ | 603,350 |  |  | $ | 682,374 |  |  | $ | 680,643 |
Affiliate revenues |  |  | 1,613 |  |  |  | 2,927 |  |  |  | 1,901 |
Segment EBITDA |  |  | 99,941 |  |  |  | 106,097 |  |  |  | 104,655 |
Depreciation expense |  |  | 11,235 |  |  |  | 11,145 |  |  |  | 10,308 |
Amortization of intangibles |  |  | 3,154 |  |  |  | 1,236 |  |  |  | 1,085 |
Severance, restructuring, and acquisition integration costs |  |  | 6,228 |  |  |  | 11,953 |  |  |  | 700 |
Purchase accounting effects of acquisitions |  |  | 334 |  |  |  | 1,328 |  |  |  | — |
Acquisition of property, plant and equipment |  |  | 8,836 |  |  |  | 10,053 |  |  |  | 14,496 |
Segment assets |  |  | 231,265 |  |  |  | 255,997 |  |  |  | 259,400 |
Industrial IT Solutions |  | Years ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Segment revenues |  | $ | 244,303 |  |  | $ | 253,464 |  |  | $ | 231,521 |
Affiliate revenues |  |  | 70 |  |  |  | 54 |  |  |  | 208 |
Segment EBITDA |  |  | 43,253 |  |  |  | 47,927 |  |  |  | 45,719 |
Depreciation expense |  |  | 2,293 |  |  |  | 2,294 |  |  |  | 2,449 |
Amortization of intangibles |  |  | 5,859 |  |  |  | 5,801 |  |  |  | 3,170 |
Severance, restructuring, and acquisition integration costs |  |  | 169 |  |  |  | 6,999 |  |  |  | 1,660 |
Purchase accounting effects of acquisitions |  |  | 32 |  |  |  | 2,030 |  |  |  | — |
Acquisition of property, plant and equipment |  |  | 2,039 |  |  |  | 1,903 |  |  |  | 2,020 |
Segment assets |  |  | 55,285 |  |  |  | 67,417 |  |  |  | 56,658 |
Network Security Solutions |  | Years ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Segment revenues |  | $ | 167,050 |  |  | $ | — |  |  | $ | — |
Affiliate revenues |  |  | 8 |  |  |  | — |  |  |  | — |
Segment EBITDA |  |  | 44,620 |  |  |  | — |  |  |  | — |
Depreciation expense |  |  | 4,137 |  |  |  | — |  |  |  | — |
Amortization of intangibles |  |  | 43,246 |  |  |  | — |  |  |  | — |
Severance, restructuring, and acquisition integration costs |  |  | 972 |  |  |  | — |  |  |  | — |
Purchase accounting effects of acquisitions |  |  | 9,197 |  |  |  | — |  |  |  | — |
Deferred gross profit adjustments |  |  | 50,430 |  |  |  | — |  |  |  | — |
Acquisition of property, plant and equipment |  |  | 5,009 |  |  |  | — |  |  |  | — |
Segment assets |  |  | 63,235 |  |  |  | — |  |  |  | — |
Total Segments |  | Years ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Segment revenues |  | $ | 2,360,583 |  |  | $ | 2,320,219 |  |  | $ | 2,084,490 |
Affiliate revenues |  |  | 8,384 |  |  |  | 12,829 |  |  |  | 12,865 |
Segment EBITDA |  |  | 401,750 |  |  |  | 360,426 |  |  |  | 322,080 |
Depreciation expense |  |  | 46,551 |  |  |  | 43,736 |  |  |  | 43,648 |
Amortization of intangibles |  |  | 103,791 |  |  |  | 58,426 |  |  |  | 50,803 |
Severance, restructuring, and acquisition integration costs |  |  | 47,170 |  |  |  | 70,827 |  |  |  | 14,888 |
Purchase accounting effects of acquisitions |  |  | 9,747 |  |  |  | 12,540 |  |  |  | 6,550 |
Deferred gross profit adjustments |  |  | 52,876 |  |  |  | 10,777 |  |  |  | 11,337 |
Acquisition of property, plant and equipment |  |  | 53,572 |  |  |  | 42,442 |  |  |  | 38,791 |
Segment assets |  |  | 934,280 |  |  |  | 960,782 |  |  |  | 833,585 |
The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively.
|  | Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Total Segment Revenues |  | $ | 2,360,583 |  |  | $ | 2,320,219 |  |  | $ | 2,084,490 |
Deferred revenue adjustments (1) |  |  | (51,361 | ) |  |  | (11,954 | ) |  |  | (15,297 | )
Consolidated Revenues |  | $ | 2,309,222 |  |  | $ | 2,308,265 |  |  | $ | 2,069,193 |
Total Segment EBITDA |  | $ | 401,750 |  |  | $ | 360,426 |  |  | $ | 322,080 |
Amortization of intangibles |  |  | (103,791 | ) |  |  | (58,426 | ) |  |  | (50,803 | )
Deferred gross profit adjustments (1) |  |  | (52,876 | ) |  |  | (10,777 | ) |  |  | (11,337 | )
Severance, restructuring, and acquisition integration costs (2) |  |  | (47,170 | ) |  |  | (70,827 | ) |  |  | (14,888 | )
Depreciation expense |  |  | (46,551 | ) |  |  | (43,736 | ) |  |  | (43,648 | )
Purchase accounting effects related to acquisitions (3) |  |  | (9,747 | ) |  |  | (12,540 | ) |  |  | (6,550 | )
Income from equity method investment |  |  | 1,770 |  |  |  | 3,955 |  |  |  | 8,922 |
Gain on sale of assets |  |  | — |  |  |  | — |  |  |  | 1,278 |
Eliminations |  |  | (2,832 | ) |  |  | (4,956 | ) |  |  | (3,792 | )
Consolidated operating income |  |  | 140,553 |  |  |  | 163,119 |  |  |  | 201,262 |
Interest expense, net |  |  | (100,613 | ) |  |  | (81,573 | ) |  |  | (72,601 | )
Loss on debt extinguishment |  |  | — |  |  |  | — |  |  |  | (1,612 | )
Consolidated income from continuing operations before taxes |  | $ | 39,940 |  |  | $ | 81,546 |  |  | $ | 127,049 |
(1) | For the year ended December 31, 2015, both our consolidated revenues and gross profit were negatively impacted by the reduction of the acquired deferred revenue balance to fair value associated with our acquisition of Tripwire. See Note 3, Acquisitions.
(2) | See Note 12, Severance, Restructuring, and Acquisition Integration Activities, for details.
(3) | For the year ended December 31, 2015, we recognized $9.2 million of compensation expense related to the accelerated vesting of acquiree stock based compensation awards associated with our acquisition of Tripwire. In addition, we recognized $ 0.3 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of Coast. For the year ended December 31, 2014, we recognized $8.3 million of cost of sales related to the adjustment of acquired inventory to fair value for our acquisitions of Grass Valley and ProSoft.
Below are reconciliations of other segment measures to the consolidated totals.
|  | Years Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (In thousands) |
Total segment assets |  | $ | 934,280 |  |  | $ | 960,782 |  |  | $ | 833,585 |
Cash and cash equivalents |  |  | 216,751 |  |  |  | 741,162 |  |  |  | 613,304 |
Goodwill |  |  | 1,385,115 |  |  |  | 943,374 |  |  |  | 773,048 |
Intangible assets, less accumulated amortization |  |  | 655,871 |  |  |  | 461,292 |  |  |  | 376,976 |
Deferred income taxes |  |  | 34,295 |  |  |  | 60,652 |  |  |  | 54,801 |
Income tax receivable |  |  | 3,787 |  |  |  | 4,953 |  |  |  | 12,169 |
Corporate assets |  |  | 85,742 |  |  |  | 88,455 |  |  |  | 87,870 |
Total assets |  | $ | 3,315,841 |  |  | $ | 3,260,670 |  |  | $ | 2,751,753 |
Total segment acquisition of property, plant and equipment |  | $ | 53,572 |  |  | $ | 42,442 |  |  | $ | 38,791 |
Corporate acquisition of property, plant and equipment |  |  | 1,397 |  |  |  | 3,017 |  |  |  | 1,418 |
Total acquisition of property, plant and equipment |  | $ | 54,969 |  |  | $ | 45,459 |  |  | $ | 40,209 |
Geographic Information The Company attributes foreign sales based on the location of the customer purchasing the product. The table below summarizes net sales and long-lived assets for the years ended December 31, 2015, 2014 and 2013 for the following countries: the U.S., Canada, China, and Germany. No other individual foreign country’s net sales or long-lived assets are material to the Company.
|  | United States |  |  | Canada |  |  | China |  |  | Germany |  |  | All Other |  |  | Total |
|  | (In thousands, except percentages) |
Year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,270,467 |  |  | $ | 170,522 |  |  | $ | 114,863 |  |  | $ | 103,106 |  |  | $ | 650,264 |  |  | $ | 2,309,222 |
Percent of total revenues |  |  | 55% |  |  |  | 7% |  |  |  | 5% |  |  |  | 4% |  |  |  | 29% |  |  |  | 100% |
Long-lived assets |  | $ | 207,265 |  |  | $ | 27,315 |  |  | $ | 62,794 |  |  | $ | 35,588 |  |  | $ | 64,434 |  |  | $ | 397,396 |
Year ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,134,721 |  |  | $ | 194,149 |  |  | $ | 132,330 |  |  | $ | 120,297 |  |  | $ | 726,768 |  |  | $ | 2,308,265 |
Percent of total revenues |  |  | 49% |  |  |  | 8% |  |  |  | 6% |  |  |  | 5% |  |  |  | 32% |  |  |  | 100% |
Long-lived assets |  | $ | 191,728 |  |  | $ | 29,773 |  |  | $ | 70,574 |  |  | $ | 40,557 |  |  | $ | 70,727 |  |  | $ | 403,359 |
Year ended December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,032,190 |  |  | $ | 195,387 |  |  | $ | 126,461 |  |  | $ | 108,745 |  |  | $ | 606,410 |  |  | $ | 2,069,193 |
Percent of total revenues |  |  | 50% |  |  |  | 9% |  |  |  | 6% |  |  |  | 5% |  |  |  | 30% |  |  |  | 100% |
Long-lived assets |  | $ | 170,813 |  |  | $ | 27,458 |  |  | $ | 76,949 |  |  | $ | 45,702 |  |  | $ | 59,275 |  |  | $ | 380,197 |
Major Customer Revenues generated from sales to the distributor Anixter International Inc., primarily in the Industrial Connectivity and Enterprise Connectivity segments, were $281.9 million (12% of revenues), $290.5 million (13% of revenues), and $289.9 million (14% of revenues) for 2015, 2014, and 2013, respectively. At December 31, 2015, we had $31.1 million in accounts receivable outstanding from Anixter International Inc. This represented approximately 8% of our total accounts receivable outstanding at December 31, 2015.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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