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Revenues
 9 Months Ended
Oct. 03, 2021
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 & 5GCyber-securityIndustrial AutomationSmart BuildingsTotal 
Revenues 
Three Months Ended October 3, 2021(In thousands)
Enterprise Solutions$124,330 $— $— $161,901 $286,231 
Industrial Solutions— 26,074 318,530 — 344,604 
Total$124,330 $26,074 $318,530 $161,901 $630,835 
Three Months Ended September 27, 2020 
Enterprise Solutions$115,149 $— $— $113,948 $229,097 
Industrial Solutions— 27,384 219,358 — 246,742 
Total$115,149 $27,384 $219,358 $113,948 $475,839 
Nine Months Ended October 3, 2021
Enterprise Solutions$354,181 $— $— $425,933 $780,114 
Industrial Solutions— 79,899 909,177 — 989,076 
Total$354,181 $79,899 $909,177 $425,933 $1,769,190 
Nine Months Ended September 27, 2020
Enterprise Solutions$318,765 $— $— $325,919 $644,684 
Industrial Solutions— 78,829 640,663 — 719,492 
Total$318,765 $78,829 $640,663 $325,919 $1,364,176 
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.
AmericasEMEAAPACTotal Revenues
Three Months Ended October 3, 2021(In thousands)
Enterprise Solutions$216,565 $34,963 $34,703 $286,231 
Industrial Solutions203,138 90,082 51,384 344,604 
Total$419,703 $125,045 $86,087 $630,835 
Three Months Ended September 27, 2020   
Enterprise Solutions$170,734 $30,185 $28,178 $229,097 
Industrial Solutions148,421 59,180 39,141 246,742 
Total$319,155 $89,365 $67,319 $475,839 
Nine Months Ended October 3, 2021
Enterprise Solutions$571,379 $113,367 $95,368 $780,114 
Industrial Solutions584,853 258,124 146,099 989,076 
Total$1,156,232 $371,491 $241,467 $1,769,190 
Nine Months Ended September 27, 2020
Enterprise Solutions$481,007 $92,197 $71,480 $644,684 
Industrial Solutions429,461 182,406 107,625 719,492 
Total$910,468 $274,603 $179,105 $1,364,176 
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 nine months ended October 3, 2021 and September 27, 2020.
The following table presents estimated and accrued variable consideration:
October 3, 2021December 31, 2020
(in thousands)
Accrued rebates included in accrued liabilities$43,627 $32,192 
Accrued returns included in accrued liabilities11,749 13,016 
Price adjustments recognized against gross accounts receivable28,372 25,244 
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 October 3, 2021, total deferred revenue was $79.1 million, and of this amount, $53.9 million is expected to be recognized within the next twelve months, and the remaining $25.2 million is long-term and is expected to be recognized over a period greater than twelve months.
The following table presents deferred revenue activity during the three and nine months ended October 3, 2021 and September 27, 2020:
20212020
(In thousands)
Beginning balance at January 1$77,648 $70,070 
New deferrals24,505 23,830 
Acquisition of OTN Systems5,997 — 
Revenue recognized(24,387)(24,415)
Balance at the end of Q183,763 69,485 
New deferrals20,596 21,322 
Adjustments related to acquisitions(2,740)— 
Revenue recognized(19,542)(22,200)
Balance at the end of Q282,077 68,607 
New deferrals20,47222,243
Revenue recognized(23,481)(20,649)
Balance at the end of Q3$79,068$70,201
Service-type warranties represent $11.6 million of the deferred revenue balance at October 3, 2021, and of this amount $4.7 million is expected to be recognized in the next twelve months, and the remaining $6.9 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 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 $6.0 million and $4.6 million as of October 3, 2021 and September 27, 2020, respectively. The following table presents sales commissions that are recorded within selling, general and administrative expenses:
Three Months endedNine Months ended
October 3, 2021September 27, 2020October 3, 2021September 27, 2020
(In thousands)
Sales commissions$5,529 $4,240 $14,121$12,270