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Revenues | 6 Months Ended
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Jul. 04, 2021
Revenue from Contract with Customer [Abstract] |
Revenues | Revenues Revenues are recognized when control of the promised goods or services is transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. The following tables present our revenues disaggregated by major product category.
|  | Broadband & 5G |  | Cyber-security |  | Industrial Automation |  | Smart Buildings |  | Total Revenues
Three Months Ended July 4, 2021 |  | (In thousands)
Enterprise Solutions |  | $ | 124,760 |  |  | $ | — |  |  | $ | — |  |  | $ | 142,768 |  |  | $ | 267,528 |
Industrial Solutions |  | — |  |  | 26,120 |  |  | 308,326 |  |  | — |  |  | 334,446 |
Total |  | $ | 124,760 |  |  | $ | 26,120 |  |  | $ | 308,326 |  |  | $ | 142,768 |  |  | $ | 601,974 |
Three Months Ended June 28, 2020 |  |  |  |  |  |  |  |  |  |
Enterprise Solutions |  | $ | 110,612 |  |  | $ | — |  |  | $ | — |  |  | $ | 92,762 |  |  | $ | 203,374 |
Industrial Solutions |  | — |  |  | 25,726 |  |  | 195,711 |  |  | — |  |  | 221,437 |
Total |  | $ | 110,612 |  |  | $ | 25,726 |  |  | $ | 195,711 |  |  | $ | 92,762 |  |  | $ | 424,811 |
Six Months Ended July 4, 2021 |  |  |  |  |  |  |  |  |  |
Enterprise Solutions |  | $ | 229,851 |  |  | $ | — |  |  | $ | — |  |  | $ | 264,032 |  |  | $ | 493,883 |
Industrial Solutions |  | — |  |  | 53,825 |  |  | 590,647 |  |  | — |  |  | 644,472 |
Total |  | $ | 229,851 |  |  | $ | 53,825 |  |  | $ | 590,647 |  |  | $ | 264,032 |  |  | $ | 1,138,355 |
Six Months Ended June 28, 2020 |  |  |  |  |  |  |  |  |  |
Enterprise Solutions |  | $ | 206,715 |  |  | $ | — |  |  | $ | — |  |  | $ | 208,872 |  |  | $ | 415,587 |
Industrial Solutions |  | — |  |  | 51,445 |  |  | 421,305 |  |  | — |  |  | 472,750 |
Total |  | $ | 206,715 |  |  | $ | 51,445 |  |  | $ | 421,305 |  |  | $ | 208,872 |  |  | $ | 888,337 |
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.
|  | Americas |  | EMEA |  | APAC |  | Total Revenues
Three Months Ended July 4, 2021 |  | (In thousands)
Enterprise Solutions |  | $ | 192,138 |  |  | $ | 40,468 |  |  | $ | 34,922 |  |  | $ | 267,528 |
Industrial Solutions |  | 196,567 |  |  | 86,762 |  |  | 51,117 |  |  | 334,446 |
Total |  | $ | 388,705 |  |  | $ | 127,230 |  |  | $ | 86,039 |  |  | $ | 601,974 |
Three Months Ended June 28, 2020 |  |  |  |  |  |  |  |
Enterprise Solutions |  | $ | 154,844 |  |  | $ | 26,150 |  |  | $ | 22,380 |  |  | $ | 203,374 |
Industrial Solutions |  | 124,640 |  |  | 57,260 |  |  | 39,537 |  |  | 221,437 |
Total |  | $ | 279,484 |  |  | $ | 83,410 |  |  | $ | 61,917 |  |  | $ | 424,811 |
Six Months Ended July 4, 2021 |  |  |  |  |  |  |  |
Enterprise Solutions |  | $ | 354,814 |  |  | $ | 78,404 |  |  | $ | 60,665 |  |  | $ | 493,883 |
Industrial Solutions |  | 381,715 |  |  | 168,042 |  |  | 94,715 |  |  | 644,472 |
Total |  | $ | 736,529 |  |  | $ | 246,446 |  |  | $ | 155,380 |  |  | $ | 1,138,355 |
Six Months Ended June 28, 2020 |  |  |  |  |  |  |  |
Enterprise Solutions |  | $ | 310,273 |  |  | $ | 62,012 |  |  | $ | 43,302 |  |  | $ | 415,587 |
Industrial Solutions |  | 281,040 |  |  | 123,226 |  |  | 68,484 |  |  | 472,750 |
Total |  | $ | 591,313 |  |  | $ | 185,238 |  |  | $ | 111,786 |  |  | $ | 888,337 |
We generate revenues primarily by selling products that provide secure and reliable transmission of data, sound, and video for mission critical applications. We also generate revenues from providing support and professional services. We sell our products to distributors, end-users, installers, and directly to original equipment manufacturers. At times, we enter into arrangements that involve the delivery of multiple performance obligations. For these arrangements, revenue is allocated to each performance obligation based on its relative selling price and recognized when or as each performance obligation is satisfied. Most of our performance obligations related to the sale of products are satisfied at a point in time when control of the product is transferred based on the shipping terms of the arrangement. Generally, we determine relative selling price using the prices charged to customers on a standalone basis. The amount of consideration we receive and revenue we recognize varies due to rebates, returns, and price adjustments. We estimate the expected rebates, returns, and price adjustments based on an analysis of historical experience, anticipated sales demand, and trends in product pricing. We adjust our estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. Adjustments to revenue for performance obligations satisfied in prior periods were not significant during the three and six months ended July 4, 2021 and June 28, 2020. The following table presents estimated and accrued variable consideration:
|  | July 4, 2021 |  | December 31, 2020
|  | (in thousands)
Accrued rebates |  | $ | 35,831 |  |  | $ | 32,192 |
Accrued returns |  | 12,003 |  |  | 13,016 |
Price adjustments recognized against gross accounts receivable |  | 27,718 |  |  | 25,244 |
Depending on the terms of an arrangement, we may defer the recognition of some or all of the consideration received because we have to satisfy a future obligation. Consideration allocated to support services under a support and maintenance contract is typically paid in advance and recognized ratably over the term of the service. Consideration allocated to professional services is typically recognized wh en or as the services are performed depending on the terms of the arrangement. As of July 4, 2021, total deferred revenue was $82.1 million, and of this amount, $57.3 million is expected to be recognized within the next twelve months, and the remaining $24.8 million is long-term and is expected to be recognized over a period greater than twelve months. The following table presents deferred revenue activity during the three and six months ended July 4, 2021 and June 28, 2020:
|  | 2021 |  | 2020
|  | (In thousands)
Beginning balance at January 1 |  | $ | 77,648 |  |  | $ | 70,070 |
New deferrals |  | 24,505 |  |  | 23,830 |
Acquisition of OTN |  | 5,997 |  |  | — |
Revenue recognized |  | (24,387) |  |  | (24,415) |
Balance at the end of Q1 |  | $ | 83,763 |  |  | $ | 69,485 |
New deferrals |  | 20,596 |  |  | 21,322 |
Adjustments related to acquisitions |  | (2,740) |  |  | — |
Revenue recognized |  | (19,542) |  |  | (22,200) |
Balance at the end of Q2 |  | $ | 82,077 |  |  | $ | 68,607 |
Service-type warr anties represent $11.0 million of the deferred revenue balance at July 4, 2021, and of this amount $3.9 million is expected to be recognized in the next twelve months, and the remaining $7.1 million is long-t erm and will be recognized over a period greater than twelve months. We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions in other current and long-lived assets on our balance sheet when the original duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. Total capitalized sales commissions was $6.2 million and $4.6 million as of July 4, 2021 and June 28, 2020, respectively. The following table presents sales commissions that are recorded within selling, general and administrative expenses:
|  | Three Months ended |  | Six Months ended |  |
|  | July 4, 2021 |  | June 28, 2020 |  | July 4, 2021 |  | June 28, 2020 |  |  |  |
|  | (In thousands)
Sales commissions |  | $ | 4,715 |  |  | $ | 3,856 |  |  | $ | 8,592 |  | $ | 8,030 |  |  |  |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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