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Reportable Segments
 9 Months Ended
Oct. 02, 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 October 2, 2022   
Segment Revenues$319,201 $351,290 $670,491 
Segment EBITDA46,110 71,055 117,165 
Depreciation expense6,020 5,827 11,847 
Amortization of intangibles4,512 5,593 10,105 
Amortization of software development intangible assets8 860 868 
Severance, restructuring, and acquisition integration costs2,702 1,858 4,560 
Adjustments related to acquisitions and divestitures(2,537)514 (2,023)
Segment assets575,829 632,997 1,208,826 
As of and for the three months ended October 3, 2021   
Segment Revenues$286,231 $319,032 $605,263 
Segment EBITDA40,411 59,947 100,358 
Depreciation expense5,280 5,306 10,586 
Amortization of intangibles4,427 3,353 7,780 
Amortization of software development intangible assets20 414 434 
Severance, restructuring, and acquisition integration costs3,381 947 4,328 
Adjustments related to acquisitions and divestitures(713)890 177 
Asset impairments— 2,288 2,288 
Segment assets552,403 563,433 1,115,836 
As of and for the nine months ended October 2, 2022   
Segment revenues$895,075 $1,052,338 $1,947,413 
Segment EBITDA118,818 206,643 325,461 
Depreciation expense17,214 17,229 34,443 
Amortization of intangibles13,051 15,048 28,099 
Amortization of software development intangible assets52 2,804 2,856 
Severance, restructuring, and acquisition integration costs7,605 6,535 14,140 
Adjustments related to acquisitions and divestitures(3,095)1,648 (1,447)
Segment assets575,829 632,997 1,208,826 
As of and for the nine months ended October 3, 2021
Segment Revenues$780,114 $910,538 $1,690,652 
Segment EBITDA104,703 163,022 267,725 
Depreciation expense16,015 15,956 31,971 
Amortization of intangibles13,202 9,743 22,945 
Amortization of software development intangible assets72 1,093 1,165 
Severance, restructuring, and acquisition integration costs7,797 4,742 12,539 
Adjustments related to acquisitions and divestitures(7,052)2,767 (4,285)
Asset impairments— 9,283 9,283 
Segment assets552,403 563,433 1,115,836 
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 EndedNine Months Ended
 October 2, 2022October 3, 2021October 2, 2022October 3, 2021
 (In thousands)
Total Segment Revenues$670,491 $605,263 $1,947,413 $1,690,652 
   Adjustments related to acquisitions— (502)— (1,351)
Consolidated revenues$670,491 $604,761 $1,947,413 $1,689,301 
Total Segment EBITDA$117,165 $100,358 $325,461 $267,725 
Gain on sale of asset37,891 — 37,891 — 
Adjustments related to acquisitions and divestitures (1)2,023 (177)1,447 4,285 
Asset impairments (2)— (2,288)— (9,283)
Depreciation expense(11,847)(10,586)(34,443)(31,971)
Amortization of intangibles(10,105)(7,780)(28,099)(22,945)
Severance, restructuring, and acquisition integration costs (3)(4,560)(4,328)(14,140)(12,539)
Amortization of software development intangible assets(868)(434)(2,856)(1,165)
Eliminations(51)(28)(156)(73)
Consolidated operating income129,648 74,737 285,105 194,034 
Interest expense, net(9,883)(16,251)(35,570)(46,632)
Loss on debt extinguishment— (5,715)(6,392)(5,715)
Total non-operating pension benefit26 992 2,296 3,121 
Consolidated income from continuing operations before taxes $119,791 $53,763 $245,439 $144,808 

(1) During the three and nine months ended October 2, 2022, we recognized cost of sales of $0.5 million and $1.6 million related to purchase accounting adjustments of acquired inventory to fair value and recognized gains of $2.5 million and $3.0 million on collections from previously written off receivables associated with the sale of Grass Valley. During the three months ended October 3, 2021, we recognized cost of sales of $0.4 million related to purchase accounting adjustments of acquired inventory to fair value, recognized $0.5 million for the purchase accounting effect of recording deferred revenue at fair value, and collected $0.7 million of receivables associated with the sale of Grass Valley and acquisition of SPC that were previously written off. During the nine months ended October 3, 2021, we reduced the Opterna earn-out liability by $5.8 million, recognized cost of sales of $2.4 million related to purchase accounting adjustments of acquired inventory to fair value, collected $2.1 million of receivables associated with the sale of Grass Valley and acquisition of SPC that were previously written off, and recognized $1.3 million for the purchase accounting effect of recording deferred revenue at fair value.
(2) During the three months ended October 3, 2021, we recognized a $2.3 million impairment on assets held for sale. During the nine months ended October 3, 2021, we recognized a $3.6 million impairment on assets held and used and a $5.7 million impairment on assets held for sale. See Note 11.
(3) Severance, restructuring, and acquisition integration costs for the three and nine months ended October 2, 2022 primarily related to our Manufacturing Footprint and Acquisition Integration programs. Costs for the three and nine months ended October 3, 2021 primarily related to our Acquisition Integration and completed Cost Reduction programs. See Note 12.