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. There was no impact to revenues for the three months ended July 1, 2018, and the impact to revenues for the six months ended July 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 July 1, 2018	(In thousands)
Enterprise Solutions	$	279,567	$	117,326	$	396,893
Industrial Solutions	172,880		98,866		271,746
Total	$	452,447	$	216,192	$	668,639

Three Months Ended July 2, 2017
Enterprise Solutions	$	255,066	$	93,738	$	348,804
Industrial Solutions	159,324		102,505		261,829
Total	$	414,390	$	196,243	$	610,633

Six Months Ended July 1, 2018
Enterprise Solutions	$	514,042	$	231,983	$	746,025
Industrial Solutions	335,602		192,577		528,179
Total	$	849,644	$	424,560	$	1,274,204

Six Months Ended July 2, 2017
Enterprise Solutions	$	489,247	$	173,835	$	663,082
Industrial Solutions	305,635		193,297		498,932
Total	$	794,882	$	367,132	$	1,162,014

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 July 1, 2018	(In thousands)
Enterprise Solutions	$	256,191	$	82,595	$	58,107	$	396,893
Industrial Solutions	155,529		73,979		42,238		271,746
Total	$	411,720	$	156,574	$	100,345	$	668,639

Three Months Ended July 2, 2017
Enterprise Solutions	$	232,215	$	59,099	$	57,490	$	348,804
Industrial Solutions	156,253		68,047		37,529		261,829
Total	$	388,468	$	127,146	$	95,019	$	610,633

Six Months Ended July 1, 2018
Enterprise Solutions	$	481,474	$	155,927	$	108,624	$	746,025
Industrial Solutions	305,333		146,571		76,275		528,179
Total	$	786,807	$	302,498	$	184,899	$	1,274,204

Six Months Ended July 2, 2017
Enterprise Solutions	$	447,345	$	107,677	$	108,060	$	663,082
Industrial Solutions	298,446		132,332		68,154		498,932
Total	$	745,791	$	240,009	$	176,214	$	1,162,014

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



	Products		Support & Services		Total Revenues

Three Months Ended July 1, 2018	(In thousands)
Enterprise Solutions	$	379,416	$	17,477	$	396,893
Industrial Solutions	248,022		23,724		271,746
Total	$	627,438	$	41,201	$	668,639

Three Months Ended July 2, 2017
Enterprise Solutions	$	330,670	$	18,134	$	348,804
Industrial Solutions	236,060		25,769		261,829
Total	$	566,730	$	43,903	$	610,633

Six Months Ended July 1, 2018
Enterprise Solutions	$	712,160	$	33,865	$	746,025
Industrial Solutions	480,075		48,104		528,179
Total	$	1,192,235	$	81,969	$	1,274,204

Six Months Ended July 2, 2017
Enterprise Solutions	$	626,639	$	36,443	$	663,082
Industrial Solutions	447,743		51,189		498,932
Total	$	1,074,382	$	87,632	$	1,162,014

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 on a standalone basis.

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. Adjustments to revenue for performance obligations satisfied in prior periods was not significant during the three and six months ended July 1, 2018. Accrued rebates and accrued returns as of July 1, 2018 totaled $23.6 million and $8.7 million, respectively. Estimated price adjustments recognized against our gross accounts receivable balance as of July 1, 2018 totaled $26.6 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 $46.6 million and $98.6 million of this amount was recognized as revenue during the three and six months ended July 1, 2018, respectively. As of July 1, 2018, total deferred revenue was $96.4 million, and of this amount, $84.7 million will be recognized within the next twelve months, and the remaining $11.7 million is long-term and will be recognized over a period greater than twelve months.

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 $2.3 million as of July 1, 2018. Total sales commissions costs were $6.3 million and $12.5 million during the three and six months ended July 1, 2018, respectively. Sales commissions are recorded within selling, general and administrative expenses.