Operating Segments (Tables)

6 Months Ended

Jul. 01, 2018

Segment Reporting [Abstract]

Operating Segment Information

Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing.

	Enterprise Solutions		Industrial Solutions		Total Segments
	(In thousands)
As of and for the three months ended July 1, 2018
Segment revenues	$	399,695	$	271,746	$	671,441
Affiliate revenues	1,496		17		1,513
Segment EBITDA	70,281		53,225		123,506
Depreciation expense	7,153		4,873		12,026
Amortization of intangibles	11,809		13,230		25,039
Amortization of software development intangible assets	488		—		488
Severance, restructuring, and acquisition integration costs	22,887		2,041		24,928
Purchase accounting effects of acquisitions	1,036		—		1,036
Deferred revenue adjustments	2,802		—		2,802
Segment assets	759,334		436,885		1,196,219
As of and for the three months ended July 2, 2017
Segment revenues	$	348,804	$	261,829	$	610,633
Affiliate revenues	1,080		23		1,103
Segment EBITDA	56,441		54,081		110,522
Depreciation expense	6,753		4,775		11,528
Amortization of intangibles	13,882		13,231		27,113
Severance, restructuring, and acquisition integration costs	9,111		449		9,560
Purchase accounting effects of acquisitions	1,167		—		1,167
Segment assets	634,930		387,138		1,022,068
As of and for the six months ended July 1, 2018
Segment revenues	$	750,685	$	528,179	$	1,278,864
Affiliate revenues	2,542		46		2,588
Segment EBITDA	127,733		99,651		227,384
Depreciation expense	14,373		9,518		23,891
Amortization of intangibles	22,979		26,478		49,457
Amortization of software development intangible assets	724		—		724
Severance, restructuring, and acquisition integration costs	37,421		7,901		45,322
Purchase accounting effects of acquisitions	1,538		—		1,538
Deferred revenue adjustments	4,660		—		4,660
Segment assets	759,334		436,885		1,196,219
As of and for the six months ended July 2, 2017
Segment revenues	$	663,082	$	498,932	$	1,162,014
Affiliate revenues	3,113		49		3,162
Segment EBITDA	105,964		97,928		203,892
Depreciation expense	13,301		9,610		22,911
Amortization of intangibles	24,321		26,461		50,782
Severance, restructuring, and acquisition integration costs	14,392		1,768		16,160
Purchase accounting effects of acquisitions	1,167		—		1,167
Segment assets	634,930		387,138		1,022,068

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 before taxes, respectively.

	Three Months Ended						Six Months Ended
	July 1, 2018			July 2, 2017			July 1, 2018			July 2, 2017
	(In thousands)
Total Segment Revenues	$	671,441		$	610,633		$	1,278,864		$	1,162,014
Deferred revenue adjustments (1)	(2,802		)	—			(4,660		)	—
Consolidated Revenues	$	668,639		$	610,633		$	1,274,204		$	1,162,014
Total Segment EBITDA	$	123,506		$	110,522		$	227,384		$	203,892
Amortization of intangibles	(25,039		)	(27,113		)	(49,457		)	(50,782		)
Severance, restructuring, and acquisition integration costs (2)	(24,928		)	(9,560		)	(45,322		)	(16,160		)
Depreciation expense	(12,026		)	(11,528		)	(23,891		)	(22,911		)
Deferred revenue adjustments (1)	(2,802		)	—			(4,660		)	—
Purchase accounting effects related to acquisitions (3)	(1,036		)	(1,167		)	(1,538		)	(1,167		)
Amortization of software development intangible assets	(488		)	—			(724		)	—
Loss on sale of assets	—			—			(94		)	—
Income from equity method investment	—			2,277			—			3,284
Eliminations	(681		)	(655		)	(989		)	(1,783		)
Consolidated operating income	56,506			62,776			100,709			114,373
Interest expense, net	(15,088		)	(23,533		)	(32,066		)	(47,039		)
Non-operating pension costs	(257		)	(295		)	(532		)	(555		)
Loss on debt extinguishment	(3,030		)	(847		)	(22,990		)	(847		)
Consolidated income before taxes	$	38,131		$	38,101		$	45,121		$	65,932

(1) For the three and six months ended July 1, 2018, 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.

(2)  See Note 9, Severance, Restructuring, and Acquisition Integration Activities, for details.

(3)  For the three and six months ended ended July 1, 2018, we recognized cost of sales for the adjustment of acquired inventory to fair value related to the SAM and NT2 acquisitions.