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Revenues
9 Months Ended
Oct. 02, 2022
Revenue from Contract with Customer [Abstract]  
Revenues RevenuesRevenues 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
 & 5G
Industrial AutomationSmart BuildingsTotal 
Revenues 
Three Months Ended October 2, 2022(In thousands)
Enterprise Solutions$155,865 $— $163,336 $319,201 
Industrial Automation Solutions— 351,290 — 351,290 
Total$155,865 $351,290 $163,336 $670,491 
Three Months Ended October 3, 2021 
Enterprise Solutions$124,330 $— $161,901 $286,231 
Industrial Automation Solutions— 318,530 — 318,530 
Total$124,330 $318,530 $161,901 $604,761 
Nine Months Ended October 2, 2022
Enterprise Solutions$424,441 $— $470,634 $895,075 
Industrial Automation Solutions— 1,052,338 — 1,052,338 
Total$424,441 $1,052,338 $470,634 $1,947,413 
Nine Months Ended October 3, 2021
Enterprise Solutions$354,181 $— $425,933 $780,114 
Industrial Automation Solutions— 909,187 — 909,187 
Total$354,181 $909,187 $425,933 $1,689,301 
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.
AmericasEMEAAPACTotal Revenues
Three Months Ended October 2, 2022(In thousands)
Enterprise Solutions$247,322 $35,045 $36,834 $319,201 
Industrial Automation Solutions202,632 87,828 60,830 351,290 
Total$449,954 $122,873 $97,664 $670,491 
Three Months Ended October 3, 2021   
Enterprise Solutions$216,566 $34,963 $34,702 $286,231 
Industrial Automation Solutions184,033 84,868 49,629 318,530 
Total$400,599 $119,831 $84,331 $604,761 
Nine Months Ended October 2, 2022
Enterprise Solutions$685,209 $110,931 $98,935 $895,075 
Industrial Automation Solutions620,987 270,044 161,307 1,052,338 
Total$1,306,196 $380,975 $260,242 $1,947,413 
Nine Months Ended October 3, 2021
Enterprise Solutions$571,379 $113,367 $95,368 $780,114 
Industrial Automation Solutions526,520 243,054 139,613 909,187 
Total$1,097,899 $356,421 $234,981 $1,689,301 
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 relative standalone selling price using the prices charged separately to customers on a standalone basis. 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. Typically, payments are due after control transfers, which is less than one year from satisfaction of the performance obligation.
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 nine months ended October 2, 2022 and October 3, 2021.
The following table presents estimated and accrued variable consideration:
October 2, 2022December 31, 2021
(in thousands)
Accrued rebates included in accrued liabilities$46,871 $55,520 
Accrued returns included in accrued liabilities10,575 12,500 
Price adjustments recognized against gross accounts receivable22,252 23,035 
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 October 2, 2022, total deferred revenue was $29.0 million, and of this amount, $21.6 million is expected to be recognized within the next twelve months, and the remaining $7.4 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 nine months ended October 2, 2022 and October 3, 2021, respectively:
20222021
(In thousands)
Beginning balance at January 1$19,390 $11,130 
New deferrals8,857 3,751 
Acquisitions6,567 5,997 
Revenue recognized(3,365)(1,272)
Balance at the end of Q131,449 19,606 
New deferrals4,265 4,127 
Acquisitions— (2,740)
Revenue recognized(8,880)(83)
Balance at the end of Q226,834 20,910 
New deferrals7,137 1,665 
Revenue recognized(4,960)(3,070)
Balance at the end of Q3$29,011 $19,505 
Service-type warranties represent $9.1 million of the deferred revenue balance at October 2, 2022, and of this amount $4.0 million is expected to be recognized in the next twelve months, and the remaining $5.1 million is long-term and will be recognized over a period greater than twelve months.
As of October 2, 2022 and December 31, 2021, we did not have any material contract assets recorded in the Condensed 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 when the original duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. We did not have any capitalized sales commissions on our balance sheet as of October 2, 2022 and December 31, 2021.
The following table presents sales commissions that are recorded within selling, general and administrative expenses:
Three Months EndedNine Months ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(In thousands)
Sales commissions$6,372 $5,492 $17,721 $13,928