Operating Segments and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2017



Broadcast Solutions	Years ended December 31,
	2017		2016			2015
	(In thousands)
Segment revenues	$	725,139	$	769,753		$	739,970
Affiliate revenues	440		744			916
Segment EBITDA	112,849		137,870			113,638
Depreciation expense	15,763		16,229			16,295
Amortization of intangibles	49,325		47,248			49,812
Amortization of software development intangible assets	56		—			—
Severance, restructuring, and acquisition integration costs	5,532		10,414			39,078
Purchase accounting effects of acquisitions	6,133		(2,991		)	132
Deferred gross profit adjustments	—		1,774			2,446
Patent settlement	—		(5,554		)	—
Acquisition of property, plant and equipment	21,314		15,713			27,365
Segment assets	405,842		325,396			346,095



Enterprise Solutions	Years ended December 31,
	2017		2016		2015
	(In thousands)
Segment revenues	$	631,166	$	603,188	$	605,910
Affiliate revenues	7,385		5,977		5,322
Segment EBITDA	103,650		101,298		100,214
Depreciation expense	10,509		13,226		12,591
Amortization of intangibles	1,729		1,718		1,720
Severance, restructuring, and acquisition integration costs	23,511		11,962		723
Purchase accounting effects of acquisitions	—		912		52
Acquisition of property, plant and equipment	28,126		22,679		10,323
Segment assets	282,072		246,564		238,400



Industrial Solutions	Years ended December 31,
	2017		2016		2015
	(In thousands)
Segment revenues	$	628,458	$	585,476	$	603,350
Affiliate revenues	1,441		1,325		1,613
Segment EBITDA	119,642		101,248		99,941
Depreciation expense	12,968		11,038		11,235
Amortization of intangibles	2,571		2,394		3,154
Severance, restructuring, and acquisition integration costs	12,272		9,923		6,228
Purchase accounting effects of acquisitions	—		—		334
Acquisition of property, plant and equipment	8,151		10,486		8,836
Segment assets	300,172		226,306		231,265



Network Solutions	Years ended December 31,
	2017		2016		2015
	(In thousands)
Segment revenues	$	403,880	$	399,388	$	411,353
Affiliate revenues	96		79		78
Segment EBITDA	93,893		92,773		87,873
Depreciation expense	6,357		6,715		6,430
Amortization of intangibles	50,372		47,025		49,105
Severance, restructuring, and acquisition integration costs	1,475		6,471		1,141
Purchase accounting effects of acquisitions	—		—		9,229
Deferred gross profit adjustments	—		4,913		50,430
Acquisition of property, plant and equipment	5,168		4,704		7,048
Segment assets	158,309		115,732		118,520



Total Segments	Years ended December 31,
	2017		2016			2015
	(In thousands)
Segment revenues	$	2,388,643	$	2,357,805		$	2,360,583
Affiliate revenues	9,362		8,125			7,929
Segment EBITDA	430,034		433,189			401,666
Depreciation expense	45,597		47,208			46,551
Amortization of intangibles	103,997		98,385			103,791
Amortization of software development intangible assets	56		—			—
Severance, restructuring, and acquisition integration costs	42,790		38,770			47,170
Purchase accounting effects of acquisitions	6,133		(2,079		)	9,747
Deferred gross profit adjustments	—		6,687			52,876
Patent settlement	—		(5,554		)	—
Acquisition of property, plant and equipment	62,759		53,582			53,572
Segment assets	1,146,395		913,998			934,280

Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes

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.



	Years Ended December 31,
	2017			2016			2015
	(In thousands)
Total Segment Revenues	$	2,388,643		$	2,357,805		$	2,360,583
Deferred revenue adjustments (1)	—			(6,687		)	(51,361		)
Patent settlement (2)	—			5,554			—
Consolidated Revenues	$	2,388,643		$	2,356,672		$	2,309,222
Total Segment EBITDA	$	430,034		$	433,189		$	401,666
Amortization of intangibles	(103,997		)	(98,385		)	(103,791		)
Depreciation expense	(45,597		)	(47,208		)	(46,551		)
Severance, restructuring, and acquisition integration costs (3)	(42,790		)	(38,770		)	(47,170		)
Purchase accounting effects related to acquisitions (4)	(6,133		)	2,079			(9,747		)
Loss on sale of assets (5)	(1,013		)	—			—
Amortization of software development intangible assets	(56		)	—			—
Impairment of assets held for sale (5)	—			(23,931		)	—
Deferred gross profit adjustments (1)	—			(6,687		)	(52,876		)
Patent settlement (2)	—			5,554			—
Income from equity method investment	7,502			1,793			1,770
Eliminations	(3,260		)	(3,781		)	(2,748		)
Consolidated operating income	234,690			223,853			140,553
Interest expense, net	(82,901		)	(95,050		)	(100,613		)
Loss on debt extinguishment	(52,441		)	(2,342		)	—
Consolidated income from continuing operations before taxes	$	99,348		$	126,461		$	39,940


(1)	Our segment results include revenues that would have been recorded by acquired businesses had they remained as independent entities. Our consolidated results do not include these revenues due to the purchase accounting effect of recording deferred revenue at fair value. See Note 3, Acquisitions, for details.


(2)	Both our consolidated revenues and gross profit were positively impacted by royalty revenues received during 2016 that related to years prior to 2016 as a result of a patent settlement.


(3)	See Note 13, Severance, Restructuring, and Acquisition Integration Activities, for details.

(4)

In 2017, we recognized $6.1 million of cost of sales related to the adjustment of acquired inventory to fair value for our Thinklogical acquisition. In 2016, we made a $3.2 million adjustment to reduce the earn-out liability associated with the M2FX acquisition. This adjustment was partially offset by $0.8 million and $0.2 million of cost of sales related to the adjustment of acquired inventory to fair value related to our Enterprise Solutions segment and M2FX acquisition, respectively. In 2015, we recognized $9.2 million of compensation expense related to the accelerated vesting of acquiree stock based compensation awards associated with our acquisition of Tripwire. In addition, we recognized $0.3 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of Coast.


(5)	In 2017 and 2016, we recognized a $1.0 million loss on sale of assets and $23.9 million impairment of assets held for sale, respectively, for the sale of our MCS business and Hirschmann JV. See Note 4, Assets Held for Sale, for details.

Reconciliations of Other Segment Measures to Consolidated Totals

Below are reconciliations of other segment measures to the consolidated totals.



	Years Ended December 31,
	2017		2016		2015
	(In thousands)
Total segment assets	$	1,146,395	$	913,998	$	934,280
Cash and cash equivalents	561,108		848,116		216,751
Goodwill	1,478,257		1,385,995		1,385,115
Intangible assets, less accumulated amortization	545,207		560,082		655,871
Deferred income taxes	42,549		33,706		34,295
Income tax receivable	—		—		3,787
Corporate assets	67,097		64,906		60,503
Total assets	$	3,840,613	$	3,806,803	$	3,290,602
Total segment acquisition of property, plant and equipment	$	62,759	$	53,582	$	53,572
Corporate acquisition of property, plant and equipment	1,502		392		1,397
Total acquisition of property, plant and equipment	$	64,261	$	53,974	$	54,969

Schedule of Revenue from External Customers and Long-Lived Assets Based on Physical Location

The table below summarizes net sales and long-lived assets for the years ended December 31, 2017, 2016 and 2015 for the following countries: the U.S., Canada, China, and Germany. No other individual foreign country’s net sales or long-lived assets are material to the Company.



	United States			Canada			China			Germany			All Other			Total
	(In thousands, except percentages)
Year ended December 31, 2017
Revenues	$	1,265,455		$	167,605		$	121,600		$	113,990		$	719,993		$	2,388,643
Percent of total revenues	53		%	7		%	5		%	5		%	30		%	100		%
Long-lived assets	$	231,938		$	33,806		$	34,774		$	38,029		$	63,982		$	402,529
Year ended December 31, 2016
Revenues	$	1,283,925		$	159,985		$	114,605		$	104,214		$	693,943		$	2,356,672
Percent of total revenues	55		%	7		%	5		%	4		%	29		%	100		%
Long-lived assets	$	193,263		$	31,278		$	30,487		$	32,386		$	60,654		$	348,068
Year ended December 31, 2015
Revenues	$	1,270,467		$	170,522		$	114,863		$	103,106		$	650,264		$	2,309,222
Percent of total revenues	55		%	7		%	5		%	4		%	29		%	100		%
Long-lived assets	$	188,032		$	27,315		$	62,794		$	35,588		$	64,434		$	378,163