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Revenues
6 Months Ended
Jun. 28, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
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 & ConnectivityNetworking, Software & SecurityTotal Revenues 
Three Months Ended June 28, 2020(In thousands)
Enterprise Solutions$193,542  $9,832  $203,374  
Industrial Solutions137,567  83,870  221,437  
Total$331,109  $93,702  $424,811  
Three Months Ended June 30, 2019   
Enterprise Solutions$233,024  $12,301  $245,325  
Industrial Solutions202,479  100,548  303,027  
Total$435,503  $112,849  $548,352  
Six Months Ended June 28, 2020
Enterprise Solutions$398,378  $17,209  $415,587  
Industrial Solutions304,619  168,131  472,750  
Total$702,997  $185,340  $888,337  
Six Months Ended June 30, 2019
Enterprise Solutions$434,286  $18,122  $452,408  
Industrial Solutions393,396  202,688  596,084  
Total$827,682  $220,810  $1,048,492  
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.
AmericasEMEAAPACTotal Revenues
Three Months Ended June 28, 2020(In thousands)
Enterprise Solutions$154,844  $26,150  $22,380  $203,374  
Industrial Solutions124,640  57,260  39,537  221,437  
Total$279,484  $83,410  $61,917  $424,811  
Three Months Ended June 30, 2019   
Enterprise Solutions$178,612  $36,622  $30,091  $245,325  
Industrial Solutions183,928  77,404  41,695  303,027  
Total$362,540  $114,026  $71,786  $548,352  
Six Months Ended June 28, 2020
Enterprise Solutions$310,273  $62,012  $43,302  $415,587  
Industrial Solutions281,040  123,226  68,484  472,750  
Total$591,313  $185,238  $111,786  $888,337  
Six Months Ended June 30, 2019
Enterprise Solutions$325,433  $70,758  $56,217  $452,408  
Industrial Solutions368,911  150,719  76,454  596,084  
Total$694,344  $221,477  $132,671  $1,048,492  
The following tables present our revenues disaggregated by products, including software products, and support and services.
ProductsSupport & ServicesTotal Revenues 
Three Months Ended June 28, 2020(In thousands)
Enterprise Solutions$203,374  $—  $203,374  
Industrial Solutions202,916  18,521  221,437  
Total$406,290  $18,521  $424,811  
Three Months Ended June 30, 2019   
Enterprise Solutions$245,325  $—  $245,325  
Industrial Solutions280,800  22,227  303,027  
Total$526,125  $22,227  $548,352  
Six Months Ended June 28, 2020
Enterprise Solutions$415,587  $—  $415,587  
Industrial Solutions435,019  37,731  472,750  
Total$850,606  $37,731  $888,337  
Six Months Ended June 30, 2019
Enterprise Solutions$452,408  $—  $452,408  
Industrial Solutions551,913  44,171  596,084  
Total$1,004,321  $44,171  $1,048,492  
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 were not significant during the three and six months ended June 28, 2020 and June 30, 2019.
The following table presents estimated and accrued variable consideration:
June 28, 2020June 30, 2019
(in thousands)
Accrued rebates$20,261  $24,152  
Accrued returns18,529  9,071  
Price adjustments recognized against gross accounts receivable19,371  29,709  
Depending on the terms of an arrangement, we may defer the recognition of some or all 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 typically recognized when or as the services are performed depending on the terms of the arrangement. As of June 28, 2020, total deferred revenue was $68.6 million, and of this amount, $49.9 million is expected to be recognized within the next twelve months, and the remaining $18.7 million is long-term and is expected to be recognized over a period greater than twelve months.
The following table presents deferred revenue activity:
20202019
(In thousands)
Beginning balance$70,070  $72,358  
New deferrals23,830  26,033  
Revenue recognized(24,415) (32,168) 
Balance at the end of the first quarter69,485  66,223  
New deferrals21,322  21,892  
Revenue recognized(22,200) (24,807) 
Balance at the end of the second quarter$68,607  $63,308  
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 original 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 $4.6 million as of June 28, 2020 and $3.3 million as of June 30, 2019. The following table presents sales commissions that are recorded within selling, general and administrative expenses:
Three Months endedSix Months ended
June 28, 2020June 30, 2019June 28, 2020June 30, 2019
(In thousands)
Sales commissions$3,856  $4,512  $8,030  $9,544  $9,544