Revenues

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

On January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. We recorded a net increase to retained earnings of $2.6 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to sales commissions and software revenues within our Industrial Solutions segment.

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 tables present our revenues disaggregated by major product category (in thousands).

	Cable & Connectivity		Networking, Software & Security		Total Revenues
Year Ended December 31, 2019
Enterprise Solutions	$	1,031,687	$	49,545	$	1,081,232
Industrial Solutions	630,462		419,584		1,050,046
Total	$	1,662,149	$	469,129	$	2,131,278
Year Ended December 31, 2018
Enterprise Solutions	$	1,046,744	$	49,156	$	1,095,900
Industrial Solutions	662,742		407,060		1,069,802
Total	$	1,709,486	$	456,216	$	2,165,702
Year Ended December 31, 2017
Enterprise Solutions	$	1,024,090	$	30,757	$	1,054,847
Industrial Solutions	628,889		403,449		1,032,338
Total	$	1,652,979	$	434,206	$	2,087,185

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

	Americas		EMEA		APAC		Total Revenues
Year Ended December 31, 2019
Enterprise Solutions	$	830,197	$	135,734	$	115,301	$	1,081,232
Industrial Solutions	607,374		274,028		168,644		1,050,046
Total	$	1,437,571	$	409,762	$	283,945	$	2,131,278
Year Ended December 31, 2018
Enterprise Solutions	$	838,874	$	135,241	$	121,785	$	1,095,900
Industrial Solutions	619,790		290,538		159,474		1,069,802
Total	$	1,458,664	$	425,779	$	281,259	$	2,165,702
Year Ended December 31, 2017
Enterprise Solutions	$	802,274	$	134,270	$	118,303	$	1,054,847
Industrial Solutions	606,437		280,785		145,116		1,032,338
Total	$	1,408,711	$	415,055	$	263,419	$	2,087,185

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

	Products		Support & Services		Total Revenues
Year Ended December 31, 2019
Enterprise Solutions	$	1,081,232	$	—	$	1,081,232
Industrial Solutions	963,007		87,039		1,050,046
Total	$	2,044,239	$	87,039	$	2,131,278
Year Ended December 31, 2018
Enterprise Solutions	$	1,095,883	$	17	$	1,095,900
Industrial Solutions	974,029		95,773		1,069,802
Total	$	2,069,912	$	95,790	$	2,165,702
Year Ended December 31, 2017
Enterprise Solutions	$	1,054,847	$	—	$	1,054,847
Industrial Solutions	929,263		103,075		1,032,338
Total	$	1,984,110	$	103,075	$	2,087,185

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. 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 standalone 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 was not significant during the year ended December 31, 2019.

The following table presents estimated and accrued variable consideration:

	December 31, 2019	December 31, 2018
	(in thousands)
Accrued rebates	37,170	41,312
Accrued returns	10,974	9,137
Price adjustment recognized against gross accounts receivable	28,672	24,976

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 recognized when or as the services are performed depending on the terms of the arrangement. As of December 31, 2019, total deferred revenue was $70.1 million, and of this amount, $54.3 million is expected to be recognized within the next twelve months, and the remaining $15.8 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, 2017	$	73,478
New deferrals	104,900
Revenue recognized	(106,020		)
Balance at December 31, 2018	72,358
New deferrals	111,812
Revenue recognized	(114,100		)
Balance at December 31, 2019	$	70,070

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 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 $3.4 million as of December 31, 2019 and $2.9 million as of December 31, 2018. For the years ended December 31, 2019 and 2018, we recognized $4.9 million and $4.7 million of sales commissions expense in selling, general, and administrative expenses, respectively.