Operating Segments and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2018



Enterprise Solutions	Years ended December 31,
	2018		2017		2016
	(In thousands)
Segment revenues	$	1,522,178	$	1,356,305	$	1,372,941
Affiliate revenues	6,085		5,091		2,799
Segment EBITDA	267,656		216,558		239,978
Depreciation expense	28,861		26,272		29,455
Amortization of intangibles	45,944		51,054		48,966
Amortization of software development intangible assets	2,180		56		—
Severance, restructuring, and acquisition integration costs	57,563		29,043		18,561
Purchase accounting effects of acquisitions	3,497		6,133		(2,079		)
Deferred revenue adjustments	6,612		—		1,774
Patent settlement	—		—		(5,554		)
Acquisition of property, plant and equipment	65,619		49,440		38,392
Segment assets	761,309		687,914		571,960



Industrial Solutions	Years ended December 31,
	2018		2017		2016
	(In thousands)
Segment revenues	$	1,069,802	$	1,032,338	$	984,864
Affiliate revenues	81		67		71
Segment EBITDA	207,724		214,190		193,811
Depreciation expense	18,754		19,325		17,753
Amortization of intangibles	52,885		52,943		49,419
Amortization of software development intangible assets	8		—		—
Severance, restructuring, and acquisition integration costs	11,050		13,747		12,579
Deferred revenue adjustments	—		—		4,913
Acquisition of property, plant and equipment	29,215		13,319		15,190
Segment assets	458,801		458,481		342,038



Total Segments	Years ended December 31,
	2018		2017		2016
	(In thousands)
Segment revenues	$	2,591,980	$	2,388,643	$	2,357,805
Affiliate revenues	6,166		5,158		2,870
Segment EBITDA	475,380		430,748		433,789
Depreciation expense	47,615		45,597		47,208
Amortization of intangibles	98,829		103,997		98,385
Amortization of software development intangible assets	2,188		56		—
Severance, restructuring, and acquisition integration costs	68,613		42,790		31,140
Purchase accounting effects of acquisitions	3,497		6,133		(2,079		)
Deferred revenue adjustments	6,612		—		6,687
Patent settlement	—		—		(5,554		)
Acquisition of property, plant and equipment	94,834		62,759		53,582
Segment assets	1,220,110		1,146,395		913,998

Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income 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.



	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Total Segment Revenues	$	2,591,980		$	2,388,643		$	2,357,805
Deferred revenue adjustments (1)	(6,612		)	—			(6,687		)
Patent settlement (2)	—			—			5,554
Consolidated Revenues	$	2,585,368		$	2,388,643		$	2,356,672
Total Segment EBITDA	$	475,380		$	430,748		$	433,789
Amortization of intangibles	(98,829		)	(103,997		)	(98,385		)
Severance, restructuring, and acquisition integration costs (3)	(68,613		)	(42,790		)	(31,140		)
Depreciation expense	(47,615		)	(45,597		)	(47,208		)
Deferred revenue adjustments (1)	(6,612		)	—			(6,687		)
Purchase accounting effects related to acquisitions (4)	(3,497		)	(6,133		)	2,079
Costs related to patent litigation	(2,634		)	—			—
Amortization of software development intangible assets	(2,188		)	(56		)	—
Loss on sale of assets (5)	(94		)	(1,013		)	—
Impairment of assets held for sale (5)	—			—			(23,931		)
Patent settlement (2)	—			—			5,554
Income from equity method investment	—			7,502			1,793
Gain from patent litigation	62,141			—			—
Eliminations	(2,218		)	(3,260		)	(3,781		)
Consolidated operating income	305,221			235,404			232,083
Interest expense, net	(61,559		)	(82,901		)	(95,050		)
Non-operating pension cost	(342		)	(714		)	(8,230		)
Loss on debt extinguishment	(22,990		)	(52,441		)	(2,342		)
Consolidated income before taxes	$	220,330		$	99,348		$	126,461


(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 4, 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 12, Severance, Restructuring, and Acquisition Integration Activities, for details.

(4)

In 2018, we recognized $3.5 million of cost of sales related to purchase accounting adjustments, most of which was for the adjustment of acquired inventory to fair value for our SAM and NT2 acquisitions. 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 segment and M2FX acquisition, respectively.


(5)	In 2018, 2017, and 2016, we recognized a $0.1 million loss on sale of assets, $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.

Reconciliations of Other Segment Measures to Consolidated Totals

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



	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Total segment assets	$	1,220,110	$	1,146,395	$	913,998
Cash and cash equivalents	420,610		561,108		848,116
Goodwill	1,557,653		1,478,257		1,385,995
Intangible assets, less accumulated amortization	511,093		545,207		560,082
Deferred income taxes	56,018		42,549		33,706
Corporate assets	13,837		67,097		64,906
Total assets	$	3,779,321	$	3,840,613	$	3,806,803
Total segment acquisition of property, plant and equipment	$	94,834	$	62,759	$	53,582
Corporate acquisition of property, plant and equipment	3,013		1,502		392
Total acquisition of property, plant and equipment	$	97,847	$	64,261	$	53,974

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, 2018, 2017 and 2016 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, 2018
Revenues	$	1,324,653		$	174,727		$	132,544		$	117,598		$	835,846		$	2,585,368
Percent of total revenues	51		%	7		%	5		%	5		%	32		%	100		%
Long-lived assets	$	189,211		$	32,312		$	37,227		$	39,870		$	97,213		$	395,833
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