XML 25 R12.htm IDEA: XBRL DOCUMENT v3.22.4
Revenues
 12 Months Ended
Dec. 31, 2022
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 5GIndustrial AutomationSmart BuildingsTotal 
Revenues 
Year Ended December 31, 2022
Enterprise Solutions$571,426 $— $627,052 $1,198,478 
Industrial Automation Solutions— 1,408,007 — 1,408,007 
Total$571,426 $1,408,007 $627,052 $2,606,485 
Year Ended December 31, 2021   
Enterprise Solutions$488,453 $— $585,973 $1,074,426 
Industrial Automation Solutions— 1,226,834 — 1,226,834 
Total$488,453 $1,226,834 $585,973 $2,301,260 
Year Ended December 31, 2020   
Enterprise Solutions$432,262 $— $440,155 $872,417 
Industrial Automation Solutions— 879,775 — 879,775 
Total$432,262 $879,775 $440,155 $1,752,192 
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product (in thousands).
AmericasEMEAAPACTotal Revenues
Year Ended December 31, 2022
Enterprise Solutions$915,491 $149,327 $133,660 $1,198,478 
Industrial Automation Solutions816,508 372,473 219,026 1,408,007 
Total$1,731,999 $521,800 $352,686 $2,606,485 
Year Ended December 31, 2021   
Enterprise Solutions$785,253 $150,790 $138,383 $1,074,426 
Industrial Automation Solutions703,790 323,915 199,129 1,226,834 
Total$1,489,043 $474,705 $337,512 $2,301,260 
Year Ended December 31, 2020   
Enterprise Solutions$636,492 $130,982 $104,943 $872,417 
Industrial Automation Solutions494,743 238,300 146,732 879,775 
Total$1,131,235 $369,282 $251,675 $1,752,192 

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. Typically, payments are due after control transfers.
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. For example, our estimate of price adjustments is based on our historical price adjustments as a percentage of revenues and the average time period between the original sale and the issuance of the price adjustment. We adjust our estimate of revenue for variable consideration at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. We adjust other current assets and cost of sales for the estimated level of returns. Adjustments to revenue for performance obligations satisfied in prior periods was not significant during the year ended December 31, 2022.

The following table presents estimated and accrued variable consideration:

December 31, 2022December 31, 2021
(in thousands)
Accrued rebates included in accrued liabilities$55,559 $55,520 
Accrued returns included in accrued liabilities11,700 12,500 
Price adjustment recognized against gross accounts receivable24,304 23,366 

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. 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, 2022, total deferred revenue was $33.2 million, and of this amount, $26.2 million is expected to be recognized within the next twelve months, and the remaining $7.0 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, 2020$11,130 
   New deferrals12,065 
   Acquisitions7,172 
   Revenue recognized(10,977)
Balance at December 31, 2021$19,390 
   New deferrals30,472 
   Acquisitions6,567 
   Revenue recognized(23,186)
Balance at December 31, 2022$33,243 

Service-type warranties represent $8.9 million of the deferred revenue balance at December 31, 2022, and of this amount $4.2 million is expected to be recognized in the next twelve months, and the remaining $4.7 million is long-term and will be recognized over a period greater than twelve months.

At December 31, 2022, 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 when the original 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 not material for the years ended December 31, 2022, 2021, and 2020. We recognized $24.1 million, $20.6 million, and $16.0 million of sales commissions expense in selling, general, and administrative expenses during the years ended December 31, 2022, 2021 and 2020, respectively.