Revenue

6 Months Ended

Jun. 27, 2021

Revenue From Contract With Customer [Abstract]

Revenue

Note 3. Revenue

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods and services for which customer purchase orders have been accepted and that are scheduled or in the process of being scheduled for shipment.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of June 27, 2021:

		1 year		2 years		Greater than 2 years		Total
	(In thousands)
Performance obligations		$	126,016	$	1,907	$	1,126	$	129,049

Contract Balances

The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets.

Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.

The following table reflects the contract balances as of June 27, 2021 and December 31, 2020, respectively:

	Balance Sheet Location	June 27, 2021		December 31, 2020
		(In thousands)
Accounts receivable, net	Accounts receivable, net	$	290,598	$	337,052
Contract liabilities - current	Deferred revenue	$	15,620	$	13,458
Contract liabilities - non-current	Other non-current liabilities	$	2,862	$	3,165

The difference in the balances of the Company's contract assets and liabilities as of June 27, 2021 and December 31, 2020 primarily results from the timing difference between the Company's performance and the customer’s payment.

During the six months ended June 27, 2021, $14.8 million of revenue was deferred due to unsatisfied performance obligations for service contracts and undelivered product commitments, $12.9 million of revenue was recognized for the satisfaction of performance obligations and $8.9 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

There were no significant changes in estimates during the period that would affect the contract balances.

Disaggregation of Revenue

In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle-East and Africa (“EMEA”); and Asia Pacific ("APAC"). The table also includes reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in two segments: Connected Home, and Small and Medium Business (“SMB”). Sales and usage-based taxes are excluded from net revenue.

	Three Months Ended
	June 27, 2021						June 28, 2020
	Connected Home		SMB		Total		Connected Home		SMB		Total
Geographic regions:
Americas	$	177,703	$	34,931	$	212,634	$	179,810	$	22,436	$	202,246
EMEA		32,549		29,223		61,772		31,203		17,156		48,359
APAC		19,611		14,794		34,405		19,004		10,443		29,447
Total	$	229,863	$	78,948	$	308,811	$	230,017	$	50,035	$	280,052
Sales channels:
Service provider	$	35,391	$	522	$	35,913	$	44,152	$	871	$	45,023
Non-service provider		194,472		78,426		272,898		185,865		49,164		235,029
Total	$	229,863	$	78,948	$	308,811	$	230,017	$	50,035	$	280,052

	Six Months Ended
	June 27, 2021						June 28, 2020
	Connected Home		SMB		Total		Connected Home		SMB		Total
Geographic regions:
Americas	$	364,120	$	67,664	$	431,784	$	308,974	$	51,462	$	360,436
EMEA		63,722		59,140		122,862		49,174		41,333		90,507
APAC		42,939		29,151		72,090		36,532		22,540		59,072
Total	$	470,781	$	155,955	$	626,736	$	394,680	$	115,335	$	510,015
Sales channels:
Service provider	$	57,629	$	1,321	$	58,950	$	70,839	$	1,668	$	72,507
Non-service provider		413,152		154,634		567,786		323,841		113,667		437,508
Total	$	470,781	$	155,955	$	626,736	$	394,680	$	115,335	$	510,015