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Reportable Segments | 9 Months Ended
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Oct. 03, 2021
Segment Reporting [Abstract] |
Reportable Segments | Reportable Segments We are organized around two global businesses: Enterprise Solutions and Industrial Solutions. Each of the global businesses represents a reportable segment. The key measures of segment profit or loss 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 Condensed Consolidated Statements of Operations and Comprehensive Income 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. 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. Inter-company revenues between our segments is not material.
|  | Enterprise Solutions |  | Industrial Solutions |  | Total Segments
|  | (In thousands)
As of and for the three months ended October 3, 2021 |  |  |  |  |  |
Segment revenues |  | $ | 286,231 |  |  | $ | 345,107 |  |  | $ | 631,338 |
Segment EBITDA |  | 40,156 |  |  | 59,582 |  |  | 99,738 |
Depreciation expense |  | 5,270 |  |  | 6,000 |  |  | 11,270 |
Amortization of intangibles |  | 4,427 |  |  | 5,269 |  |  | 9,696 |
Amortization of software development intangible assets |  | 20 |  |  | 770 |  |  | 790 |
Severance, restructuring, and acquisition integration costs |  | 3,381 |  |  | 947 |  |  | 4,328 |
Adjustments related to acquisitions and divestitures |  | (510) |  |  | 2,974 |  |  | 2,464 |
Segment assets |  | 552,416 |  |  | 608,262 |  |  | 1,160,678 |
As of and for the three months ended September 27, 2020 |  |  |  |  |  |
Segment revenues |  | $ | 229,097 |  |  | $ | 246,742 |  |  | $ | 475,839 |
Segment EBITDA |  | 26,250 |  |  | 38,391 |  |  | 64,641 |
Depreciation expense |  | 5,005 |  |  | 5,450 |  |  | 10,455 |
Amortization of intangibles |  | 5,408 |  |  | 10,696 |  |  | 16,104 |
Amortization of software development intangible assets |  | 73 |  |  | 456 |  |  | 529 |
Severance, restructuring, and acquisition integration costs |  | 1,337 |  |  | 20 |  |  | 1,357 |
Segment assets |  | 519,142 |  |  | 486,110 |  |  | 1,005,252 |
As of and for the nine months ended October 3, 2021 |  |  |  |  |  |
Segment revenues |  | $ | 780,114 |  |  | $ | 990,428 |  |  | $ | 1,770,542 |
Segment EBITDA |  | 103,531 |  |  | 167,676 |  |  | 271,207 |
Depreciation expense |  | 15,985 |  |  | 18,212 |  |  | 34,197 |
Amortization of intangibles |  | 13,202 |  |  | 15,543 |  |  | 28,745 |
Amortization of software development intangible assets |  | 72 |  |  | 2,014 |  |  | 2,086 |
Severance, restructuring, and acquisition integration costs |  | 7,756 |  |  | 4,783 |  |  | 12,539 |
Adjustments related to acquisitions and divestitures |  | (6,828) |  |  | 11,825 |  |  | 4,997 |
Segment assets |  | 552,416 |  |  | 608,262 |  |  | 1,160,678 |
|  | Enterprise Solutions |  | Industrial Solutions |  | Total Segments
|  | (In thousands)
As of and for the nine months ended September 27, 2020 |  |  |  |  |  |
Segment revenues |  | $ | 644,684 |  |  | $ | 719,492 |  |  | $ | 1,364,176 |
Segment EBITDA |  | 73,193 |  |  | 100,367 |  |  | 173,560 |
Depreciation expense |  | 15,208 |  |  | 15,861 |  |  | 31,069 |
Amortization of intangibles |  | 16,266 |  |  | 32,040 |  |  | 48,306 |
Amortization of software development intangible assets |  | 184 |  |  | 1,061 |  |  | 1,245 |
Severance, restructuring, and acquisition integration costs |  | 6,310 |  |  | 3,138 |  |  | 9,448 |
Adjustments related to acquisitions and divestitures |  | 125 |  |  | — |  |  | 125 |
Segment assets |  | 519,142 |  |  | 486,110 |  |  | 1,005,252 |
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.
| Three Months Ended |  | Nine Months Ended |  |
| October 3, 2021 |  | September 27, 2020 |  | October 3, 2021 |  | September 27, 2020 |  |  |  |
| (In thousands)
Total Segment Revenues | $ | 631,338 |  |  | $ | 475,839 |  |  | $ | 1,770,542 |  |  | $ | 1,364,176 |  |  |  |  |
Adjustments related to acquisitions | (503) |  |  | — |  |  | (1,352) |  |  | — |  |  |  |  |
Consolidated Revenues | $ | 630,835 |  |  | $ | 475,839 |  |  | $ | 1,769,190 |  |  | $ | 1,364,176 |  |  |  |  |
Total Segment EBITDA | $ | 99,738 |  |  | $ | 64,641 |  |  | $ | 271,207 |  |  | $ | 173,560 |  |  |  |  |
Amortization of intangibles | (9,696) |  |  | (16,104) |  |  | (28,745) |  |  | (48,306) |  |  |  |  |
Depreciation expense | (11,270) |  |  | (10,455) |  |  | (34,197) |  |  | (31,069) |  |  |  |  |
Severance, restructuring, and acquisition integration costs (1) | (4,328) |  |  | (1,357) |  |  | (12,539) |  |  | (9,448) |  |  |  |  |
Amortization of software development intangible assets | (790) |  |  | (529) |  |  | (2,086) |  |  | (1,245) |  |  |  |  |
Adjustments related to acquisitions and divestitures (2) | (2,464) |  |  | — |  |  | (4,997) |  |  | (125) |  |  |  |  |
Eliminations | (24) |  |  | (69) |  |  | (72) |  |  | (402) |  |  |  |  |
Consolidated operating income | 71,166 |  |  | 36,127 |  |  | 188,571 |  |  | 82,965 |  |  |  |  |
Interest expense, net | (16,251) |  |  | (15,607) |  |  | (46,640) |  |  | (43,188) |  |  |  |  |
Loss on debt extinguishment | (5,715) |  |  | — |  |  | (5,715) |  |  | — |  |  |  |  |
Total non-operating pension benefit | 992 |  |  | 680 |  |  | 3,121 |  |  | 2,079 |  |  |  |  |
Consolidated income from continuing operations before taxes | $ | 50,192 |  |  | $ | 21,200 |  |  | $ | 139,337 |  |  | $ | 41,856 |  |  |  |  |
(1) See Note 12, Severance, Restructuring, and Acquisition Integration Activities, for details. (2) During the three months ended October 3, 2021, we recognized a $2.3 million impairment on assets held for sale, collected $0.7 million of receivables associated with the sale of Grass Valley and acquisition of SPC that were previously written off, included $0.5 million in Segment EBITDA for the purchase accounting effect of recording deferred revenue at fair value for the OTN Systems acquisition, and recognized cost of sales of $0.4 million related to purchase accounting ad justments of acquired inventory to fair value for the OTN Systems acquisition. During the nine months ended October 3, 2021, we reduced the Opterna earn-out liability by $5.8 million, recognized a $5.7 million impairment on assets held for sale, recognized a $3.6 million impairment on assets held and used, recognized cost of sales of $2.4 million related to purchase accounting adjustments of acquired inventory to fair value for the OTN Systems acquisition, collected $2.2 million of receivables associated with the sale of Grass Valley and acquisition of SPC that were previously written off, and included $1.3 million in Segment EBITDA for the purchase accounting effect of recording deferred revenue at fair value for the OTN Systems acquisition. During the nine months ended September 27, 2020, we recognized cost of sales related to purchase accounting adjustments of acquired inventory to fair value for the SPC acquisition.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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