Segment Information

12 Months Ended

Dec. 30, 2011

Segment Information [Abstract]

Segment Information

14. Segment Information

We report operating results for three segments: Broadband, Transport and Services.

The Broadband segment includes data, access and managed access product portfolios that facilitate delivery of next-generation wireline and wireless services and the delivery of bundled voice, video and high-speed Internet/data services over copper-based and/or fiber-based networks. Data products include the Tellabs^® 7300 Metro Ethernet Switching Series, the Tellabs^® 8600 Managed Edge System, the Tellabs^® 8800 Multiservice Router Series and the Tellabs^® SmartCore^® 9100 Platform. Access offerings include the Tellabs^® 1000 Multiservice Access Series, the Tellabs^® 1100 Multiservice Access Series and the Tellabs^® 1600 Optical Network Terminal (ONT) Series. Managed access products include the Tellabs^® 6300 Managed Transport System and the Tellabs^® 8100 Managed Access System.

The Transport segment includes solutions that enable service providers to transport service and manage optical bandwidth by adding capacity when and where it is needed. Wireline and wireless carriers use these products within the metropolitan portion of their transport networks to support wireless services, business services for enterprise customers, and triple-play voice, video and data services for residential customers. Product offerings primarily include the Tellabs^® 5000 Series of digital cross-connect systems, and the Tellabs^® 7100 Packet Optical System.

The Services segment includes deployment, support, training and professional services. These services support all phases of the network: planning, building and operating.

We define segment profit as gross profit less research and development expenses. Segment profit excludes sales and marketing expenses, general and administrative expenses, the amortization of intangibles, restructuring and other charges, the impact of equity-based compensation and the goodwill and IPR&D impairment charges.

Consolidated revenue by segment follows:

	2011		2010		2009
Broadband	$	670.6	$	846.0	$	785.8
Transport		391.8		554.0		509.6
Services		223.3		242.3		230.3
Total	$	1,285.7	$	1,642.3	$	1,525.7

Segment profit and reconciliation to operating (loss) earnings by segment follows:

	2011			2010			2009
Broadband	$	54.0		$	229.4		$	185.7
Transport		66.8			191.8			139.4
Services		75.3			81.2			81.8
Total segment profit	$	196.1		$	502.4		$	406.9
Sales and marketing expenses		(163.0	)		(179.3	)		(165.9	)
General and administrative expenses		(80.9	)		(100.4	)		(101.4	)
Equity-based compensation		(11.9	)		(12.5	)		(9.8	)
Intangible asset amortization		(20.2	)		(27.0	)		(24.6	)
Restructuring and other charges		(20.3	)		(9.5	)		(11.7	)
Goodwill and IPR&D impairment		(102.7	)		—			—
Operating (loss) earnings	$	(202.9	)	$	173.7		$	93.5

The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and therefore no asset, depreciation and amortization, or capital expenditure by segment information is provided to our chief operating decision maker.

During 2011, revenue from one customer accounted for 22% of consolidated revenue. In 2010, revenue from two customers accounted for 35% and 20% of consolidated revenue. In 2009, revenue from two customers accounted for 30% and 21% of consolidated revenue. We attribute revenue to customers based on the effective date of any relevant merger. Revenue from these major customers is earned in each of the three operating segments.

Consolidated revenue by country based on customer location follows:

	2011		2010		2009
United States	$	642.5	$	1,138.2	$	993.3
All other countries		643.2		504.1		532.4
Total	$	1,285.7	$	1,642.3	$	1,525.7

Long-lived assets by country follow:

	12/30/11		12/31/10
United States	$	407.3	$	515.9
Finland		55.8		58.8
All other countries		23.6		23.3
Total	$	486.7	$	598.0