Revenues

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

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.



	Cable & Connectivity		Networking, Software & Security		Total Revenues

Three Months Ended June 30, 2019	(In thousands)
Enterprise Solutions	$	268,382	$	101,480	$	369,862
Industrial Solutions	167,121		100,547		267,668
Total	$	435,503	$	202,027	$	637,530

Three Months Ended July 1, 2018
Enterprise Solutions	$	279,567	$	117,326	$	396,893
Industrial Solutions	172,880		98,866		271,746
Total	$	452,447	$	216,192	$	668,639

Six Months Ended June 30, 2019
Enterprise Solutions	$	502,053	$	194,336	$	696,389
Industrial Solutions	325,629		202,687		528,316
Total	$	827,682	$	397,023	$	1,224,705

Six Months Ended July 1, 2018
Enterprise Solutions	$	514,042	$	231,983	$	746,025
Industrial Solutions	335,602		192,577		528,179
Total	$	849,644	$	424,560	$	1,274,204

The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.



	Americas		EMEA		APAC		Total Revenues

Three Months Ended June 30, 2019	(In thousands)
Enterprise Solutions	$	244,670	$	72,932	$	52,260	$	369,862
Industrial Solutions	154,261		71,722		41,685		267,668
Total	$	398,931	$	144,654	$	93,945	$	637,530

Three Months Ended July 1, 2018
Enterprise Solutions	$	256,191	$	82,595	$	58,107	$	396,893
Industrial Solutions	155,529		73,979		42,238		271,746
Total	$	411,720	$	156,574	$	100,345	$	668,639

Six Months Ended June 30, 2019
Enterprise Solutions	$	455,934	$	140,252	$	100,203	$	696,389
Industrial Solutions	306,835		145,037		76,444		528,316
Total	$	762,769	$	285,289	$	176,647	$	1,224,705

Six Months Ended July 1, 2018
Enterprise Solutions	$	481,474	$	155,927	$	108,624	$	746,025
Industrial Solutions	305,333		146,571		76,275		528,179
Total	$	786,807	$	302,498	$	184,899	$	1,274,204

The following tables present our revenues disaggregated by products, including software products, and support and services.



	Products		Support & Services		Total Revenues

Three Months Ended June 30, 2019	(In thousands)
Enterprise Solutions	$	350,270	$	19,592	$	369,862
Industrial Solutions	245,440		22,228		267,668
Total	$	595,710	$	41,820	$	637,530

Three Months Ended July 1, 2018
Enterprise Solutions	$	379,416	$	17,477	$	396,893
Industrial Solutions	248,022		23,724		271,746
Total	$	627,438	$	41,201	$	668,639

Six Months Ended June 30, 2019
Enterprise Solutions	$	658,129	$	38,260	$	696,389
Industrial Solutions	484,144		44,172		528,316
Total	$	1,142,273	$	82,432	$	1,224,705

Six Months Ended July 1, 2018
Enterprise Solutions	$	712,160	$	33,865	$	746,025
Industrial Solutions	480,075		48,104		528,179
Total	$	1,192,235	$	81,969	$	1,274,204

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 selling price and recognized when or as each performance obligation is satisfied. 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. Generally, we determine relative selling price using the prices charged to customers on a standalone basis.

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 June 30, 2019 and July 1, 2018.

The following table presents estimated and accrued variable consideration:



	June 30, 2019		July 1, 2018

	(in thousands)
Accrued rebates	$	24,178	$	23,586
Accrued returns	13,249		8,676
Price adjustments recognized against gross accounts receivable	29,762		26,581

Depending on the terms of an arrangement, we may defer the recognition of a portion 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 June 30, 2019, total deferred revenue was $107.4 million, and of this amount, $94.2 million is expected to be recognized within the next twelve months, and the remaining $13.2 million is long-term and is expected to be recognized over a period greater than twelve months.

The following table presents deferred revenue activity:



	Six Months Ended
	June 30, 2019			July 1, 2018

	(In thousands)
Beginning balance	$	113,300		$	104,400
New deferrals	92,213			90,583
Revenue recognized	(98,100		)	(98,600		)
Ending balance	$	107,413		$	96,383

We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions in other current and long-lived assets on our balance sheet 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 was $3.3 million as of June 30, 2019 and $2.3 million as of July 1, 2018. The following table presents sales commissions that are recorded within selling, general and administrative expenses:



	Three Months ended				Six Months Ended
	June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018

	(in thousands)
Sales commissions	$	5,185	$	6,332	$	10,769	$	12,461