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Reportable Segments
 6 Months Ended
Jul. 03, 2022
Segment Reporting [Abstract]  
Reportable Segments Reportable Segments
We are organized around two global businesses: Enterprise Solutions and Industrial Automation Solutions. Each of the global businesses represents a reportable segment. In conjunction with the Tripwire divestiture during the first quarter of 2022, we changed the name of our former Industrial Solutions segment to Industrial Automation Solutions. The composition of the segment did not change as a result of this name change.

The key measures of segment profit or loss are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation.

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 SolutionsIndustrial Automation SolutionsTotal Segments
 (In thousands)
As of and for the three months ended July 3, 2022   
Segment Revenues$307,444 $359,107 $666,551 
Segment EBITDA41,887 68,060 109,947 
Depreciation expense5,768 5,602 11,370 
Amortization of intangibles4,442 4,735 9,177 
Amortization of software development intangible assets22 959 981 
Severance, restructuring, and acquisition integration costs4,575 1,282 5,857 
Adjustments related to acquisitions and divestitures(558)1,134 576 
Segment assets607,386 649,595 1,256,981 
As of and for the three months ended July 4, 2021   
Segment Revenues$267,528 $309,178 $576,706 
Segment EBITDA36,001 55,464 91,465 
Depreciation expense5,372 5,286 10,658 
Amortization of intangibles4,439 2,733 7,172 
Amortization of software development intangible assets20 302 322 
Severance, restructuring, and acquisition integration costs2,464 576 3,040 
Adjustments related to acquisitions and divestitures(32)1,944 1,912 
Segment assets522,635 580,653 1,103,288 
As of and for the six months ended July 3, 2022   
Segment revenues$575,874 $701,048 $1,276,922 
Segment EBITDA72,708 135,588 208,296 
Depreciation expense11,194 11,402 22,596 
Amortization of intangibles8,539 9,455 17,994 
Amortization of software development intangible assets44 1,944 1,988 
Severance, restructuring, and acquisition integration costs4,903 4,677 9,580 
Adjustments related to acquisitions and divestitures(558)1,134 576 
Segment assets607,386 649,595 1,256,981 
As of and for the six months ended July 4, 2021
Segment Revenues$493,883 $591,506 $1,085,389 
Segment EBITDA64,292 103,075 167,367 
Depreciation expense10,735 10,650 21,385 
Amortization of intangibles8,775 6,390 15,165 
Amortization of software development intangible assets52 679 731 
Severance, restructuring, and acquisition integration costs4,416 3,795 8,211 
Adjustments related to acquisitions and divestitures(6,339)1,877 (4,462)
Asset impairments— 6,995 6,995 
Segment assets522,635 580,653 1,103,288 
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 EndedSix Months Ended
 July 3, 2022July 4, 2021July 3, 2022July 4, 2021
 (In thousands)
Total segment revenues$666,551 $576,706 $1,276,922 $1,085,389 
   Adjustments related to acquisitions— (849)— (849)
Consolidated revenues$666,551 $575,857 $1,276,922 $1,084,540 
Total Segment EBITDA$109,947 $91,465 $208,296 $167,367 
Depreciation expense(11,370)(10,658)(22,596)(21,385)
Amortization of intangibles(9,177)(7,172)(17,994)(15,165)
Amortization of software development intangible assets(981)(322)(1,988)(731)
Severance, restructuring, and acquisition integration costs (1)(5,857)(3,040)(9,580)(8,211)
Adjustments related to acquisitions and divestitures (2)(576)(1,912)(576)4,462 
Asset impairments (3)— — — (6,995)
Eliminations(50)(12)(105)(45)
Consolidated operating income81,936 68,349 155,457 119,297 
Interest expense, net(11,276)(14,870)(25,687)(30,381)
Loss on debt extinguishment— — (6,392)— 
Total non-operating pension benefit1,070 1,445 2,270 2,129 
Consolidated income from continuing operations before taxes $71,730 $54,924 $125,648 $91,045 

(1) Severance, restructuring, and acquisition integration costs for the three and six months ended July 3, 2022 primarily related to our Manufacturing Footprint and Acquisition Integration programs. Costs for the three and six months ended July 4, 2021 primarily related to our Acquisition Integration and completed Cost Reduction programs. See Note 12.
(2) During the three and six months ended July 3, 2022, we recognized cost of sales of $1.1 million related to purchase accounting adjustments of acquired inventory to fair value and collected $0.5 million of previously written off receivables associated with the sale of Grass Valley. During the three months ended July 4, 2021, we recognized cost of sales of $1.2 million related to purchase accounting adjustments of acquired inventory to fair value, recognized $0.8 million for the purchase accounting effect of recording deferred revenue at fair value, and collected $0.1 million of previously written off receivables associated with the sale of Grass Valley. During the six months ended July 4, 2021, we reduced the Opterna earn-out liability by $5.8 million, recognized cost of sales of $2.0 million related to purchase accounting adjustments of acquired inventory to fair value, collected $1.4 million of previously written off receivables associated with the sale of Grass Valley, and recognized $0.8 million for the purchase accounting effect of recording deferred revenue at fair value.
(3) During the six months ended July 4, 2021, we recognized a $3.6 million impairment on assets held and used and a $3.4 million impairment on assets held for sale. See Note 11.