Revenues

3 Months Ended

Apr. 04, 2021

Revenue from Contract with Customer [Abstract]

Revenues

RevenuesRevenues 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.

	Broadband & 5G		Cyber-security		Industrial Automation		Smart Buildings		Total  Revenues
Three Months Ended April 4, 2021	(In thousands)
Enterprise Solutions	$	105,091	$	—	$	—	$	121,264	$	226,355
Industrial Solutions	—		27,705		282,321		—		310,026
Total	$	105,091	$	27,705	$	282,321	$	121,264	$	536,381
Three Months Ended March 29, 2020
Enterprise Solutions	$	96,103	$	—	$	—	$	116,110	$	212,213
Industrial Solutions	—		25,719		225,594		—		251,313
Total	$	96,103	$	25,719	$	225,594	$	116,110	$	463,526

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 April 4, 2021	(In thousands)
Enterprise Solutions	$	162,676	$	37,936	$	25,743	$	226,355
Industrial Solutions	185,148		81,280		43,598		310,026
Total	$	347,824	$	119,216	$	69,341	$	536,381
Three Months Ended March 29, 2020
Enterprise Solutions	$	155,429	$	35,862	$	20,922	$	212,213
Industrial Solutions	156,400		65,966		28,947		251,313
Total	$	311,829	$	101,828	$	49,869	$	463,526

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 months ended April 4, 2021 nor March 29, 2020.

The following table presents estimated and accrued variable consideration:

	April 4, 2021		March 29, 2020
	(in thousands)
Accrued rebates	$	23,415	$	17,672
Accrued returns	13,155		10,491
Price adjustments recognized against gross accounts receivable	30,207		26,837

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 April 4, 2021, total deferred revenue was $83.8 million, and of this amount, $58.0 million is expected to be recognized within the next twelve months, and the remaining $25.8 million is long-term and is expected to be recognized over a period greater than twelve months.

The following table presents deferred revenue activity:

	Three Months Ended
	April 4, 2021		March 29, 2020
	(In thousands)
Beginning balance	$	77,648	$	70,070
New deferrals	24,505		23,830
Acquisition of OTN	5,997		—
Revenue recognized	(24,387)		(24,415)
Ending balance	$	83,763	$	69,485

Service-type warranties represent $10.9 million of the deferred revenue balance at April 4, 2021, and of this amount $3.9 million is expected to be recognized in the next twelve months, and the remaining $7.0 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 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 $6.1 million as of April 4, 2021 and $3.0 million as of March 29, 2020. The following table presents sales commissions that are recorded within selling, general and administrative expenses:

	Three Months ended
	April 4, 2021		March 29, 2020
	(In thousands)
Sales commissions	$	3,877	$	4,175