Revenues

12 Months Ended

Dec. 31, 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. We do not evaluate a contract for a significant financing component when the time between cash collection and performance is less than one year.

The following table presents our revenues disaggregated by major product category (in thousands).

	Broadband and 5G		Cyber-Security		Industrial Automation		Smart Buildings		Total  Revenues
Year Ended December 31, 2021
Enterprise Solutions	$	488,453	$	—	$	—	$	585,973	$	1,074,426
Industrial Solutions	—		106,850		1,226,824		—		1,333,674
Total	$	488,453	$	106,850	$	1,226,824	$	585,973	$	2,408,100
Year Ended December 31, 2020
Enterprise Solutions	$	432,262	$	—	$	—	$	440,155	$	872,417
Industrial Solutions	—		110,524		879,775		—		990,299
Total	$	432,262	$	110,524	$	879,775	$	440,155	$	1,862,716
Year Ended December 31, 2019
Enterprise Solutions	$	401,415	$	—	$	—	$	544,626	$	946,041
Industrial Solutions	—		133,039		1,052,198		—		1,185,237
Total	$	401,415	$	133,039	$	1,052,198	$	544,626	$	2,131,278

The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product (in thousands).

	Americas		EMEA		APAC		Total Revenues
Year Ended December 31, 2021
Enterprise Solutions	$	785,253	$	150,790	$	138,383	$	1,074,426
Industrial Solutions	781,362		344,379		207,933		1,333,674
Total	$	1,566,615	$	495,169	$	346,316	$	2,408,100
Year Ended December 31, 2020
Enterprise Solutions	$	636,492	$	130,982	$	104,943	$	872,417
Industrial Solutions	577,929		256,673		155,697		990,299
Total	$	1,214,421	$	387,655	$	260,640	$	1,862,716
Year Ended December 31, 2019
Enterprise Solutions	$	695,008	$	135,732	$	115,301	$	946,041
Industrial Solutions	742,563		274,030		168,644		1,185,237
Total	$	1,437,571	$	409,762	$	283,945	$	2,131,278

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 standalone selling price and recognized when or as each performance obligation is satisfied. Generally, we determine standalone selling price using the prices charged to customers on a standalone basis. In arrangements where software licenses with highly variable standalone selling prices are sold with either support or professional services, we generally determine the standalone selling price of the software license using the residual approach. Typically, payments are due after control transfers, which is less than one year from satisfaction of the performance obligation.

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 to the customer, which generally occurs when the product has been shipped or delivered from our facility to our customers, the customer has legal title to the product, and we have a present right to payment for the product. We also consider any customer acceptance clauses in determining when control has transferred to the customer and typically, these clauses are not substantive.

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 was not significant during the year ended December 31, 2021.

The following table presents estimated and accrued variable consideration:

	December 31, 2021		December 31, 2020
	(in thousands)
Accrued rebates included in accrued liabilities	$	55,525	$	32,192
Accrued returns included in accrued liabilities	12,530		13,016
Price adjustment recognized against gross accounts receivable	23,035		25,244

Depending on the terms of an arrangement, we may defer the recognition of a portion of the consideration received because we must satisfy a future performance 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. The typical use of a time-elapsed unit of measure for support and maintenance contracts reflects the benefit and same pattern of transfer the customer receives from our services under this arrangement over the term of the contract. Consideration allocated to professional services is recognized when or as the services are performed depending on the terms of the arrangement. As of December 31, 2021, total deferred revenue was $86.8 million, and of this amount, $60.9 million is expected to be recognized within the next twelve months, and the remaining $25.9 million is long-term and will be recognized over a period greater than twelve months.

The following table presents deferred revenue activity (in thousands):

Balance at December 31, 2019	$	70,070
New deferrals	101,066
Revenue recognized	(93,488)
Balance at December 31, 2020	$	77,648
New deferrals	97,940
Acquisitions	7,172
Revenue recognized	(95,915)
Balance at December 31, 2021	$	86,845

Service-type warranties represent $9.6 million of the deferred revenue balance at December 31, 2021, and of this amount $4.1 million is expected to be recognized in the next twelve months, and the remaining $5.5 million is long-term and will be recognized over a period greater than twelve months.

At December 31, 2021, we did not have any material contract assets recorded in the consolidated balance sheets.

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 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 were $7.1 million, $5.8 million, and $3.4 million as of December 31, 2021, 2020, and 2019, respectively. For the years ended December 31, 2021, 2020 and 2019, we recognized $20.9 million, $16.3 million, and $19.0 million of sales commissions expense in selling, general, and administrative expenses, respectively.