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Revenues
 6 Months Ended
Jul. 02, 2023
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.
The following tables present our revenues disaggregated by major product category.
Broadband
 Solutions		Industrial AutomationSmart BuildingsTotal 
Revenues 
Three Months Ended July 2, 2023(In thousands)
Enterprise Solutions$159,332 $— $153,197 $312,529 
Industrial Automation Solutions— 379,716 — 379,716 
Total$159,332 $379,716 $153,197 $692,245 
Three Months Ended July 3, 2022 
Enterprise Solutions$146,771 $— $160,673 $307,444 
Industrial Automation Solutions— 359,107 — 359,107 
Total$146,771 $359,107 $160,673 $666,551 
Six Months Ended July 2, 2023
Enterprise Solutions$290,887 $— $296,985 $587,872 
Industrial Automation Solutions— 746,162 — 746,162 
Total$290,887 $746,162 $296,985 $1,334,034 
Six Months Ended July 3, 2022
Enterprise Solutions$268,576 $— $307,298 $575,874 
Industrial Automation Solutions— 701,048 — 701,048 
Total$268,576 $701,048 $307,298 $1,276,922 
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.
AmericasEMEAAPACTotal Revenues
Three Months Ended July 2, 2023(In thousands)
Enterprise Solutions$246,471 $36,671 $29,387 $312,529 
Industrial Automation Solutions213,852 109,055 56,809 379,716 
Total$460,323 $145,726 $86,196 $692,245 
Three Months Ended July 3, 2022   
Enterprise Solutions$233,501 $36,497 $37,446 $307,444 
Industrial Automation Solutions214,045 91,765 53,297 359,107 
Total$447,546 $128,262 $90,743 $666,551 
Six Months Ended July 2, 2023
Enterprise Solutions$460,358 $74,119 $53,395 $587,872 
Industrial Automation Solutions429,065 210,976 106,121 746,162 
Total$889,423 $285,095 $159,516 $1,334,034 
Six Months Ended July 3, 2022
Enterprise Solutions$437,887 $75,886 $62,101 $575,874 
Industrial Automation Solutions418,355 182,216 100,477 701,048 
Total$856,242 $258,102 $162,578 $1,276,922 
We generate revenues primarily by selling products that support communication, infrastructure, and delivery solutions that make the digital journey simpler, smarter, and more secure. 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 six months ended July 2, 2023 and July 3, 2022.
The following table presents estimated and accrued variable consideration:
July 2, 2023December 31, 2022
(in thousands)
Accrued rebates included in accrued liabilities$42,868 $55,559 
Accrued returns included in accrued liabilities16,575 11,700 
Price adjustments recognized against gross accounts receivable25,457 24,304 
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 July 2, 2023, total deferred revenue was $29.7 million, and of this amount, $22.7 million is expected to be recognized within the next twelve months, and the remaining $7.0 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 six months ended July 2, 2023 and July 3, 2022, respectively:
20232022
(In thousands)
Beginning balance at January 1$33,243 $19,390 
New deferrals4,359 8,857 
Acquisitions— 6,567 
Revenue recognized(8,307)(3,365)
Balance at the end of Q1$29,295 $31,449 
New deferrals6,900 4,265 
Revenue recognized(6,528)(8,880)
Balance at the end of Q2$29,667 $26,834 
Service-type warranties represent $9.5 million of the deferred revenue balance at July 2, 2023, and of this amount $4.9 million is expected to be recognized in the next twelve months, and the remaining $4.6 million is long-term and will be recognized over a period greater than twelve months. As of July 2, 2023 and December 31, 2022, 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 July 2, 2023 and December 31, 2022. The following table presents sales commissions that are recorded within selling, general and administrative expenses:
Three Months EndedSix Months ended
July 2, 2023July 3, 2022July 2, 2023July 3, 2022
(In thousands)
Sales commissions$6,316 $6,131 $12,089 $11,354