Revenues

12 Months Ended

Dec. 31, 2020

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. 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 table presents our revenues disaggregated by major product category (in thousands).

	Broadband and 5G		Cyber-Security		Industrial Automation		Smart Buildings		Total  Revenues
Year Ended December 31, 2020
Enterprise Solutions	$	432,262	$	—	$	—	$	440,155	$	872,417
Industrial Solutions	—		110,524		879,775		—		990,299
Total	$	432,262	$	110,524	$	879,775	$	440,155	$	1,862,716
Year Ended December 31, 2019
Enterprise Solutions	$	401,415	$	—	$	—	$	544,626	$	946,041
Industrial Solutions	—		133,039		1,052,198		—		1,185,237
Total	$	401,415	$	133,039	$	1,052,198	$	544,626	$	2,131,278
Year Ended December 31, 2018
Enterprise Solutions	$	389,246	$	—	$	—	$	568,255	$	957,501
Industrial Solutions	—		136,648		1,071,553		—		1,208,201
Total	$	389,246	$	136,648	$	1,071,553	$	568,255	$	2,165,702

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, 2020
Enterprise Solutions	$	636,492	$	130,982	$	104,943	$	872,417
Industrial Solutions	577,929		256,673		155,697		990,299
Total	$	1,214,421	$	387,655	$	260,640	$	1,862,716
Year Ended December 31, 2019
Enterprise Solutions	$	695,008	$	135,732	$	115,301	$	946,041
Industrial Solutions	742,563		274,030		168,644		1,185,237
Total	$	1,437,571	$	409,762	$	283,945	$	2,131,278
Year Ended December 31, 2018
Enterprise Solutions	$	700,499	$	135,217	$	121,785	$	957,501
Industrial Solutions	758,165		290,562		159,474		1,208,201
Total	$	1,458,664	$	425,779	$	281,259	$	2,165,702

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. 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 was not significant during the year ended December 31, 2020.

The following table presents estimated and accrued variable consideration:

	December 31, 2020		December 31, 2019
	(in thousands)
Accrued rebates	$	32,192	$	37,170
Accrued returns	13,016		10,974
Price adjustment recognized against gross accounts receivable	25,244		28,672

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. The typical use of a time-elapsed unit of measure for support and maintenance contracts reflects the benefit and same pattern of transfer the customer receives from our services under this arrangement over the term of the contract. 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, 2020, total deferred revenue was $77.6 million, and of this amount, $53.4 million is expected to be recognized within the next twelve months, and the remaining $24.2 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, 2018	$	72,358
New deferrals	111,812
Revenue recognized	(114,100)
Balance at December 31, 2019	$	70,070
New deferrals	101,066
Revenue recognized	(93,488)
Balance at December 31, 2020	$	77,648

Service-type warranties represent $10.4 million of the deferred revenue balance at December 31, 2020, and of this amount $3.6 million is expected to be recognized in the next twelve months, and the remaining $6.8 million is long-term and will be recognized over a period greater than twelve months.

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 were $5.8 million, $3.4 million, and $2.9 million as of December 31, 2020, 2019, and 2018, respectively. For the years ended December 31, 2020, 2019 and 2018, we recognized $16.3 million, $19.0 million, and $20.3 million of sales commissions expense in selling, general, and administrative expenses, respectively.