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Revenues
 6 Months Ended
Jul. 04, 2021
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.
Broadband & 5GCyber-securityIndustrial AutomationSmart BuildingsTotal 
Revenues 
Three Months Ended July 4, 2021(In thousands)
Enterprise Solutions$124,760 $— $— $142,768 $267,528 
Industrial Solutions— 26,120 308,326 — 334,446 
Total$124,760 $26,120 $308,326 $142,768 $601,974 
Three Months Ended June 28, 2020 
Enterprise Solutions$110,612 $— $— $92,762 $203,374 
Industrial Solutions— 25,726 195,711 — 221,437 
Total$110,612 $25,726 $195,711 $92,762 $424,811 
Six Months Ended July 4, 2021
Enterprise Solutions$229,851 $— $— $264,032 $493,883 
Industrial Solutions— 53,825 590,647 — 644,472 
Total$229,851 $53,825 $590,647 $264,032 $1,138,355 
Six Months Ended June 28, 2020
Enterprise Solutions$206,715 $— $— $208,872 $415,587 
Industrial Solutions— 51,445 421,305 — 472,750 
Total$206,715 $51,445 $421,305 $208,872 $888,337 
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.
AmericasEMEAAPACTotal Revenues
Three Months Ended July 4, 2021(In thousands)
Enterprise Solutions$192,138 $40,468 $34,922 $267,528 
Industrial Solutions196,567 86,762 51,117 334,446 
Total$388,705 $127,230 $86,039 $601,974 
Three Months Ended June 28, 2020   
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 
Six Months Ended July 4, 2021
Enterprise Solutions$354,814 $78,404 $60,665 $493,883 
Industrial Solutions381,715 168,042 94,715 644,472 
Total$736,529 $246,446 $155,380 $1,138,355 
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 
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 July 4, 2021 and June 28, 2020.
The following table presents estimated and accrued variable consideration:
July 4, 2021December 31, 2020
(in thousands)
Accrued rebates$35,831 $32,192 
Accrued returns12,003 13,016 
Price adjustments recognized against gross accounts receivable27,718 25,244 
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 July 4, 2021, total deferred revenue was $82.1 million, and of this amount, $57.3 million is expected to be recognized within the next twelve months, and the remaining $24.8 million is long-term and is expected to be recognized over a period greater than twelve months.
The following table presents deferred revenue activity during the three and six months ended July 4, 2021 and June 28, 2020:
20212020
(In thousands)
Beginning balance at January 1$77,648 $70,070 
New deferrals24,505 23,830 
Acquisition of OTN5,997 — 
Revenue recognized(24,387)(24,415)
Balance at the end of Q1$83,763 $69,485 
New deferrals20,596 21,322 
Adjustments related to acquisitions(2,740)— 
Revenue recognized(19,542)(22,200)
Balance at the end of Q2$82,077 $68,607 
Service-type warranties represent $11.0 million of the deferred revenue balance at July 4, 2021, and of this amount $3.9 million is expected to be recognized in the next twelve months, and the remaining $7.1 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 $6.2 million and $4.6 million as of July 4, 2021 and June 28, 2020, respectively. The following table presents sales commissions that are recorded within selling, general and administrative expenses:
Three Months endedSix Months ended
July 4, 2021June 28, 2020July 4, 2021June 28, 2020
(In thousands)
Sales commissions$4,715 $3,856 $8,592$8,030