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Segment Information and Major Customers | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Information and Major Customers | Note 14 – Segment Information and Major Customers Our chief operating decision maker regularly reviews our financial performance based on two reportable segments – Network Solutions and Services & Support. Network Solutions includes software and hardware products and next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes our suite of ProCloud managed services, network installation, engineering and maintenance services, and fee-based technical support and equipment repair/replacement plans. We evaluate the performance of our segments based on gross profit. Selling, general, and administrative expenses, research and development expenses, interest and dividend income, interest expense, net investment gain (loss), other income (expense) and provision (benefit) for taxes are reported on a company-wide, functional basis only. There are no inter-segment revenues. The following table presents information about the reported sales and gross profit of our reportable segments for each of the years ended December 31, 2018, 2017 and 2016. Asset information by reportable segment is not reported, since we do not produce such information internally.
|  | 2018 |  |  | 2017 |  |  | 2016 |
(In thousands) |  | Sales |  |  | Gross Profit |  |  | Sales |  |  | Gross Profit |  |  | Sales |  |  | Gross Profit |
Network Solutions |  | $ | 458,232 |  |  | $ | 179,303 |  |  | $ | 540,396 |  |  | $ | 260,833 |  |  | $ | 525,502 |  |  | $ | 254,797 |
Services & Support |  |  | 71,045 |  |  |  | 24,262 |  |  |  | 126,504 |  |  |  | 42,802 |  |  |  | 111,279 |  |  |  | 36,533 |
Total |  | $ | 529,277 |  |  | $ | 203,565 |  |  | $ | 666,900 |  |  | $ | 303,635 |  |  | $ | 636,781 |  |  | $ | 291,330 |
Sales by Category In addition to the above reporting segments, we also report revenue for the following three categories – Access & Aggregation, Subscriber Solutions & Experience, and Traditional & Other Products. The following tables disaggregates our revenue by major source for the years ended December 31, 2018, 2017 and 2016:
|  | 2018 |
(In thousands) |  | Network Solutions |  |  | Services & Support |  |  | Total |
Access & Aggregation |  | $ | 301,801 |  |  | $ | 57,069 |  |  | $ | 358,870 |
Subscriber Solutions & Experience (1) |  |  | 129,067 |  |  |  | 5,393 |  |  |  | 134,460 |
Traditional & Other Products |  |  | 27,364 |  |  |  | 8,583 |  |  |  | 35,947 |
Total |  | $ | 458,232 |  |  | $ | 71,045 |  |  | $ | 529,277 |
|  | 2017 |
(In thousands) |  | Network Solutions |  |  | Services & Support |  |  | Total |
Access & Aggregation |  | $ | 361,955 |  |  | $ | 111,989 |  |  | $ | 473,944 |
Subscriber Solutions & Experience (1) |  |  | 132,294 |  |  |  | 6,162 |  |  |  | 138,456 |
Traditional & Other Products |  |  | 46,147 |  |  |  | 8,353 |  |  |  | 54,500 |
Total |  | $ | 540,396 |  |  | $ | 126,504 |  |  | $ | 666,900 |
|  | 2016 |
(In thousands) |  | Network Solutions |  |  | Services & Support |  |  | Total |
Access & Aggregation |  | $ | 339,451 |  |  | $ | 96,921 |  |  | $ | 436,372 |
Subscriber Solutions & Experience (1) |  |  | 130,645 |  |  |  | 6,963 |  |  |  | 137,608 |
Traditional & Other Products |  |  | 55,406 |  |  |  | 7,395 |  |  |  | 62,801 |
Total |  | $ | 525,502 |  |  | $ | 111,279 |  |  | $ | 636,781 |
| (1) | Subscriber Solutions & Experience was formerly reported as Customer Devices. With the increasing focus on enhancing the customer experience for both our business and consumer broadband customers and the addition of SmartRG during the fourth quarter of 2018, Subscriber Solutions & Experience more accurately represents this revenue category.
The following table presents sales information by geographic area for the years ended December 31, 2018, 2017 and 2016:
(In thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
United States |  | $ | 288,843 |  |  | $ | 508,178 |  |  | $ | 501,337 |
Germany |  |  | 167,251 |  |  |  | 119,502 |  |  |  | 85,780 |
Other international |  |  | 73,183 |  |  |  | 39,220 |  |  |  | 49,664 |
Total |  | $ | 529,277 |  |  | $ | 666,900 |  |  | $ | 636,781 |
Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of our revenue in 2018 included two customers at 27% and 17%. Single customers comprising more than 10% of our revenue in 2017 included two customers at 40% and 16%. Single customers comprising more than 10% of our revenue in 2016 included three customers at 24%, 19% and 12%. Other than those with more than 10 percent of revenues disclosed above, and excluding distributors, our next five largest customers can change from year-to-year. These customers represented 18%, 15% and 13% of total revenue in 2018, 2017 and 2016, respectively. Additional Segment Information As of December 31, 2018, long-lived assets, net totaled $80.6 million, which includes $77.3 million held in the U.S. and $3.3 million held outside the U.S. As of December 31, 2017, long-lived assets, net totaled $85.1 million, which includes $80.6 million held in the U.S. and $4.5 million held outside the U.S.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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