Reportable Segments (Tables)

9 Months Ended

Sep. 29, 2019

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 September 29, 2019
Segment revenues	$	368,080		$	252,238	$	620,318
Affiliate revenues	927			2		929
Segment EBITDA	56,814			44,614		101,428
Depreciation expense	7,381			4,766		12,147
Amortization of intangibles	9,780			12,463		22,243
Amortization of software development intangible assets	1,161			36		1,197
Severance, restructuring, and acquisition integration costs	4,045			—		4,045
Purchase accounting effects of acquisitions	(186		)	—		(186		)
Goodwill and other asset impairment	342,146			—		342,146
Segment assets	836,540			455,470		1,292,010
As of and for the three months ended September 30, 2018
Segment revenues	$	392,080		$	266,923	$	659,003
Affiliate revenues	1,776			15		1,791
Segment EBITDA	72,210			53,750		125,960
Depreciation expense	7,092			4,579		11,671
Amortization of intangibles	12,322			13,211		25,533
Amortization of software development intangible assets	620			—		620
Severance, restructuring, and acquisition integration costs	9,528			2,160		11,688
Purchase accounting effects of acquisitions	821			—		821
Deferred revenue adjustments	3,229			—		3,229
Segment assets	766,505			448,626		1,215,131
As of and for the nine months ended September 29, 2019
Segment revenues	$	1,064,469		$	780,554	$	1,845,023
Affiliate revenues	3,190			13		3,203
Segment EBITDA	149,855			139,531		289,386
Depreciation expense	22,655			14,515		37,170
Amortization of intangibles	29,270			38,682		67,952
Amortization of software development intangible assets	3,119			87		3,206
Severance, restructuring, and acquisition integration costs	10,904			—		10,904
Purchase accounting effects of acquisitions	1,845			—		1,845
Goodwill and other asset impairment	342,146			—		342,146
Segment assets	836,540			455,470		1,292,010
As of and for the nine months ended September 30, 2018
Segment revenues	$	1,142,765		$	795,102	$	1,937,867
Affiliate revenues	4,318			61		4,379
Segment EBITDA	199,943			153,401		353,344
Depreciation expense	21,465			14,097		35,562
Amortization of intangibles	35,301			39,689		74,990
Amortization of software development intangible assets	1,344			—		1,344
Severance, restructuring, and acquisition integration costs	46,949			10,061		57,010
Purchase accounting effects of acquisitions	2,359			—		2,359
Deferred revenue adjustments	7,889			—		7,889
Segment assets	766,505			448,626		1,215,131

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.



	Three Months Ended						Nine Months Ended
	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018

	(In thousands)
Total Segment Revenues	$	620,318		$	659,003		$	1,845,023		$	1,937,867
Deferred revenue adjustments (1)	—			(3,229		)	—			(7,889		)
Consolidated Revenues	$	620,318		$	655,774		$	1,845,023		$	1,929,978

Total Segment EBITDA	$	101,428		$	125,960		$	289,386		$	353,344
Goodwill and other asset impairment (2)	(342,146		)	—			(342,146		)	—
Amortization of intangibles	(22,243		)	(25,533		)	(67,952		)	(74,990		)
Depreciation expense	(12,147		)	(11,671		)	(37,170		)	(35,562		)
Severance, restructuring, and acquisition integration costs (3)	(4,045		)	(11,688		)	(10,904		)	(57,010		)
Amortization of software development intangible assets	(1,197		)	(620		)	(3,206		)	(1,344		)
Purchase accounting effects related to acquisitions (4)	186			(821		)	(1,845		)	(2,359		)
Deferred revenue adjustments (1)	—			(3,229		)	—			(7,889		)
Loss on sale of assets	—			—			—			(94		)
Costs related to patent litigation	—			(2,634		)	—			(2,634		)
Gain from patent litigation	—			62,141			—			62,141
Eliminations	(343		)	(627		)	(1,086		)	(1,616		)
Consolidated operating income (loss)	(280,507		)	131,278			(174,923		)	231,987
Interest expense, net	(14,200		)	(14,472		)	(42,561		)	(46,538		)
Non-operating pension benefit	489			1,356			1,517			824
Loss on debt extinguishment	—			—			—			(22,990		)
Consolidated income (loss) before taxes	$	(294,218	)	$	118,162		$	(215,967	)	$	163,283

(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 3, Acquisitions, for details.

(2) For the three and nine months ended September 29, 2019, we recognized a $342.1 million goodwill and other asset impairment charge for our Grass Valley reporting unit. See Note 8, Long-Lived Assets, for details.

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

(4) For the nine months ended September 29, 2019, we recognized expenses related to the earnout consideration for the SAM acquisition. For the three and nine months ended September 29, 2019, we recognized cost of sales for the adjustment of acquired inventory to fair value related to the Opterna and FutureLink acquisitions. For the three and nine months ended September 30, 2018, we recognized cost of sales for the adjustment of acquired inventory to fair value related to the SAM and NT2 acquisitions.