Reportable Segments (Tables)

9 Months Ended

Oct. 03, 2021

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. Inter-company revenues between our segments is not material.


	Enterprise Solutions		Industrial Solutions		Total Segments

	(In thousands)
As of and for the three months ended October 3, 2021
Segment revenues	$	286,231	$	345,107	$	631,338

Segment EBITDA	40,156		59,582		99,738
Depreciation expense	5,270		6,000		11,270
Amortization of intangibles	4,427		5,269		9,696
Amortization of software development intangible assets	20		770		790
Severance, restructuring, and acquisition integration costs	3,381		947		4,328
Adjustments related to acquisitions and divestitures	(510)		2,974		2,464
Segment assets	552,416		608,262		1,160,678

As of and for the three months ended September 27, 2020
Segment revenues	$	229,097	$	246,742	$	475,839

Segment EBITDA	26,250		38,391		64,641
Depreciation expense	5,005		5,450		10,455
Amortization of intangibles	5,408		10,696		16,104
Amortization of software development intangible assets	73		456		529
Severance, restructuring, and acquisition integration costs	1,337		20		1,357

Segment assets	519,142		486,110		1,005,252

As of and for the nine months ended October 3, 2021
Segment revenues	$	780,114	$	990,428	$	1,770,542

Segment EBITDA	103,531		167,676		271,207
Depreciation expense	15,985		18,212		34,197
Amortization of intangibles	13,202		15,543		28,745
Amortization of software development intangible assets	72		2,014		2,086
Severance, restructuring, and acquisition integration costs	7,756		4,783		12,539
Adjustments related to acquisitions and divestitures	(6,828)		11,825		4,997
Segment assets	552,416		608,262		1,160,678





	Enterprise Solutions		Industrial Solutions		Total Segments

	(In thousands)

As of and for the nine months ended September 27, 2020
Segment revenues	$	644,684	$	719,492	$	1,364,176

Segment EBITDA	73,193		100,367		173,560
Depreciation expense	15,208		15,861		31,069
Amortization of intangibles	16,266		32,040		48,306
Amortization of software development intangible assets	184		1,061		1,245
Severance, restructuring, and acquisition integration costs	6,310		3,138		9,448
Adjustments related to acquisitions and divestitures	125		—		125
Segment assets	519,142		486,110		1,005,252

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 from continuing operations before taxes, respectively.


	Three Months Ended				Nine Months Ended
	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020

	(In thousands)
Total Segment Revenues	$	631,338	$	475,839	$	1,770,542	$	1,364,176
Adjustments related to acquisitions	(503)		—		(1,352)		—
Consolidated Revenues	$	630,835	$	475,839	$	1,769,190	$	1,364,176

Total Segment EBITDA	$	99,738	$	64,641	$	271,207	$	173,560
Amortization of intangibles	(9,696)		(16,104)		(28,745)		(48,306)
Depreciation expense	(11,270)		(10,455)		(34,197)		(31,069)
Severance, restructuring, and acquisition integration costs (1)	(4,328)		(1,357)		(12,539)		(9,448)
Amortization of software development intangible assets	(790)		(529)		(2,086)		(1,245)
Adjustments related to acquisitions and divestitures (2)	(2,464)		—		(4,997)		(125)
Eliminations	(24)		(69)		(72)		(402)
Consolidated operating income	71,166		36,127		188,571		82,965
Interest expense, net	(16,251)		(15,607)		(46,640)		(43,188)
Loss on debt extinguishment	(5,715)		—		(5,715)		—
Total non-operating pension benefit	992		680		3,121		2,079
Consolidated income from continuing operations before taxes	$	50,192	$	21,200	$	139,337	$	41,856

(1) See Note 12, Severance, Restructuring, and Acquisition Integration Activities, for details.

(2) During the three months ended October 3, 2021, we recognized a $2.3 million impairment on assets held for sale, collected $0.7 million of receivables associated with the sale of Grass Valley and acquisition of SPC that were previously written off, included $0.5 million in Segment EBITDA for the purchase accounting effect of recording deferred revenue at fair value for the OTN Systems acquisition, and recognized cost of sales of $0.4 million related to purchase accounting adjustments of acquired inventory to fair value for the OTN Systems acquisition. During the nine months ended October 3, 2021, we reduced the Opterna earn-out liability by $5.8 million, recognized a $5.7 million impairment on assets held for sale, recognized a $3.6 million impairment on assets held and used, recognized cost of sales of $2.4 million related to purchase accounting adjustments of acquired inventory to fair value for the OTN Systems acquisition, collected $2.2 million of receivables associated with the sale of Grass Valley and acquisition of SPC that were previously written off, and included $1.3 million in Segment EBITDA for the purchase accounting effect of recording deferred revenue at fair value for the OTN Systems acquisition. During the nine months ended September 27, 2020, we recognized cost of sales related to purchase accounting adjustments of acquired inventory to fair value for the SPC acquisition.