Revenues

On January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the accounting standards in effect for those periods.

We recorded a net increase to retained earnings of $2.6 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to sales commissions and software revenues within our Industrial Solutions segment. The impact to revenues for the three months ended April 1, 2018 was a decrease of $0.1 million as a result of applying Topic 606.

Revenues are recognized when control of the promised goods or services is transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. The following tables present our revenues disaggregated by major product category.



	Cable & Connectivity		Networking, Software & Security		Total Revenues

Three Months Ended April 1, 2018	(In thousands)
Enterprise Solutions	$	234,467	$	114,657	$	349,124
Industrial Solutions	162,730		93,711		256,441
Total	$	397,197	$	208,368	$	605,565

Three Months Ended April 2, 2017
Enterprise Solutions	$	234,181	$	80,097	$	314,278
Industrial Solutions	146,311		90,792		237,103
Total	$	380,492	$	170,889	$	551,381

The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.



	Americas		EMEA		APAC		Total Revenues

Three Months Ended April 1, 2018	(In thousands)
Enterprise Solutions	$	225,279	$	73,329	$	50,516	$	349,124
Industrial Solutions	149,812		72,592		34,037		256,441
Total	$	375,091	$	145,921	$	84,553	$	605,565

Three Months Ended April 2, 2017
Enterprise Solutions	$	215,128	$	48,580	$	50,570	$	314,278
Industrial Solutions	142,193		64,285		30,625		237,103
Total	$	357,321	$	112,865	$	81,195	$	551,381

The following tables present our revenues disaggregated by products, including software products, and support and services.



	Products		Support & Services		Total Revenues

Three Months Ended April 1, 2018	(In thousands)
Enterprise Solutions	$	331,749	$	17,375	$	349,124
Industrial Solutions	224,647		31,794		256,441
Total	$	556,396	$	49,169	$	605,565

Three Months Ended April 2, 2017
Enterprise Solutions	$	293,499	$	20,779	$	314,278
Industrial Solutions	202,919		34,184		237,103
Total	$	496,418	$	54,963	$	551,381

We generate revenues primarily by selling products that provide secure and reliable transmission of data, sound, and video for mission critical applications. We also generate revenues from providing support and professional services. We sell our products to distributors, end-users, installers, and directly to original equipment manufacturers. At times, we enter into arrangements that involve the delivery of multiple performance obligations. For these arrangements, revenue is allocated to each performance obligation based on its relative selling price and recognized when or as each performance obligation is satisfied. Most of our performance obligations related to the sale of products are satisfied at a point in time when control of the product is transferred based on the shipping terms of the arrangement. Generally, we determine relative selling price using the prices charged to customers.

The amount of consideration we receive and revenue we recognize varies due to rebates, returns, and price adjustments. We estimate the expected rebates, returns, and price adjustments based on an analysis of historical experience, anticipated sales demand, and trends in product pricing. We adjust our estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. As a result, we recognized an increase to revenues of $0.2 million during the three months ended April 1, 2018 related to performance obligations satisfied in prior periods. Accrued rebates and accrued returns as of April 1, 2018 totaled $17.9 million and $6.9 million, respectively. Estimated price adjustments recognized against our gross accounts receivable balance as of April 1, 2018 totaled $25.7 million.

Depending on the terms of an arrangement, we may defer the recognition of a portion of the consideration received because we have to satisfy a future obligation. Consideration allocated to support services under a support and maintenance contract is typically paid in advance and recognized ratably over the term of the service. Consideration allocated to professional services is recognized when or as the services are performed depending on the terms of the arrangement. As of January 1, 2018, total deferred revenue was $104.4 million, and $52.0 million of this amount was recognized as revenue during the three months ended April 1, 2018. Total deferred revenue was $97.8 million as of April 1, 2018.

We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions in other current or long-lived assets on our balance sheet when the duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. Total capitalized sales commissions was $2.4 million as of April 1, 2018. Total sales commissions costs were $6.1 million during the three months ended April 1, 2018. Sales commissions are recorded within selling, general and administrative expenses.