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 significant impact to revenues for the three and nine months ended September 30, 2018 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 September 30, 2018	(In thousands)
Enterprise Solutions	$	271,928	$	116,923	$	388,851
Industrial Solutions	162,460		104,463		266,923
Total	$	434,388	$	221,386	$	655,774

Three Months Ended October 1, 2017
Enterprise Solutions	$	262,212	$	98,630	$	360,842
Industrial Solutions	160,520		100,383		260,903
Total	$	422,732	$	199,013	$	621,745

Nine Months Ended September 30, 2018
Enterprise Solutions	$	785,970	$	348,906	$	1,134,876
Industrial Solutions	498,062		297,040		795,102
Total	$	1,284,032	$	645,946	$	1,929,978

Nine Months Ended October 1, 2017
Enterprise Solutions	$	751,459	$	272,465	$	1,023,924
Industrial Solutions	466,155		293,680		759,835
Total	$	1,217,614	$	566,145	$	1,783,759

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 September 30, 2018	(In thousands)
Enterprise Solutions	$	254,320	$	72,467	$	62,064	$	388,851
Industrial Solutions	156,334		71,280		39,309		266,923
Total	$	410,654	$	143,747	$	101,373	$	655,774

Three Months Ended October 1, 2017
Enterprise Solutions	$	243,223	$	61,270	$	56,349	$	360,842
Industrial Solutions	150,229		72,718		37,956		260,903
Total	$	393,452	$	133,988	$	94,305	$	621,745

Nine Months Ended September 30, 2018
Enterprise Solutions	$	735,794	$	228,394	$	170,688	$	1,134,876
Industrial Solutions	461,667		217,851		115,584		795,102
Total	$	1,197,461	$	446,245	$	286,272	$	1,929,978

Nine Months Ended October 1, 2017
Enterprise Solutions	$	690,568	$	168,947	$	164,409	$	1,023,924
Industrial Solutions	448,675		205,050		106,110		759,835
Total	$	1,139,243	$	373,997	$	270,519	$	1,783,759

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



	Products		Support & Services		Total Revenues

Three Months Ended September 30, 2018	(In thousands)
Enterprise Solutions	$	368,389	$	20,462	$	388,851
Industrial Solutions	243,578		23,345		266,923
Total	$	611,967	$	43,807	$	655,774

Three Months Ended October 1, 2017
Enterprise Solutions	$	342,216	$	18,626	$	360,842
Industrial Solutions	235,378		25,525		260,903
Total	$	577,594	$	44,151	$	621,745

Nine Months Ended September 30, 2018
Enterprise Solutions	$	1,080,549	$	54,327	$	1,134,876
Industrial Solutions	723,653		71,449		795,102
Total	$	1,804,202	$	125,776	$	1,929,978

Nine Months Ended October 1, 2017
Enterprise Solutions	$	968,855	$	55,069	$	1,023,924
Industrial Solutions	683,121		76,714		759,835
Total	$	1,651,976	$	131,783	$	1,783,759

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 nine months ended September 30, 2018. Accrued rebates and accrued returns as of September 30, 2018 totaled $30.1 million and $9.3 million, respectively. Estimated price adjustments recognized against our gross accounts receivable balance as of September 30, 2018 totaled $29.0 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 $50.8 million and $149.4 million was recognized as revenue during the three and nine months ended September 30, 2018, respectively. As of September 30, 2018, total deferred revenue was $90.8 million, and of this amount, $78.5 million will be recognized within the next twelve months, and the remaining $12.3 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 and 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 September 30, 2018. Total sales commissions costs were $5.9 million and $18.4 million during the three and nine months ended September 30, 2018, respectively. Sales commissions are recorded within selling, general and administrative expenses.