Segment Information

3 Months Ended

Mar. 30, 2012

Segment Information [Abstract]

Segment Information

11. 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 intangible asset impairment charge and the impact of equity-based compensation.

Consolidated revenue by segment follows:

	First Quarter
	3/30/12		4/1/11
Broadband	$	130.1	$	173.0
Transport		79.6		99.4
Services		48.2		50.0
Total	$	257.9	$	322.4

Segment profit and reconciliation to operating loss by segment follows:

	First Quarter
	3/30/12			4/1/11
Broadband	$	8.0		$	19.7
Transport		8.2			16.0
Services		15.2			10.0
Total segment profit	$	31.4		$	45.7
Sales and marketing expenses		(36.4	)		(44.7	)
General and administrative expenses		(21.1	)		(23.7	)
Equity-based compensation		(2.6	)		(3.7	)
Intangible asset amortization		(2.2	)		(5.2	)
Restructuring and other charges		(106.0	)		(1.0	)
Operating loss	$	(136.9	)	$	(32.6	)

The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and therefore asset, depreciation and amortization, or capital expenditure by segment information is not provided to our chief operating decision maker.