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Revenues
6 Months Ended
Jul. 03, 2022
Revenue from Contract with Customer [Abstract]  
Revenues RevenuesRevenues 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
 & 5G
Industrial AutomationSmart BuildingsTotal 
Revenues 
Three Months Ended July 3, 2022(In thousands)
Enterprise Solutions$146,771 $— $160,673 $307,444 
Industrial Automation Solutions— 359,107 — 359,107 
Total$146,771 $359,107 $160,673 $666,551 
Three Months Ended July 4, 2021 
Enterprise Solutions$124,760 $— $142,768 $267,528 
Industrial Automation Solutions— 308,329 — 308,329 
Total$124,760 $308,329 $142,768 $575,857 
Six Months Ended July 3, 2022
Enterprise Solutions$268,576 $— $307,298 $575,874 
Industrial Automation Solutions— 701,048 — 701,048 
Total$268,576 $701,048 $307,298 $1,276,922 
Six Months Ended July 4, 2021
Enterprise Solutions$229,851 $— $264,032 $493,883 
Industrial Automation Solutions— 590,657 — 590,657 
Total$229,851 $590,657 $264,032 $1,084,540 
The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product.
AmericasEMEAAPACTotal Revenues
Three Months Ended July 3, 2022(In thousands)
Enterprise Solutions$233,501 $36,497 $37,446 $307,444 
Industrial Automation Solutions214,045 91,765 53,297 359,107 
Total$447,546 $128,262 $90,743 $666,551 
Three Months Ended July 4, 2021   
Enterprise Solutions$192,138 $40,468 $34,922 $267,528 
Industrial Automation Solutions176,264 83,090 48,975 308,329 
Total$368,402 $123,558 $83,897 $575,857 
Six Months Ended July 3, 2022
Enterprise Solutions$437,887 $75,886 $62,101 $575,874 
Industrial Automation Solutions418,355 182,216 100,477 701,048 
Total$856,242 $258,102 $162,578 $1,276,922 
Six Months Ended July 4, 2021
Enterprise Solutions$354,813 $78,404 $60,666 $493,883 
Industrial Automation Solutions342,487 158,186 89,984 590,657 
Total$697,300 $236,590 $150,650 $1,084,540 
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.
Generally, we determine relative standalone selling price using the prices charged separately to a customers on a standalone basis. 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. 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 were not significant during the three and six months ended July 3, 2022 and July 4, 2021.
The following table presents estimated and accrued variable consideration:
July 3, 2022December 31, 2021
(in thousands)
Accrued rebates included in accrued liabilities$43,249 $55,520 
Accrued returns included in accrued liabilities10,212 12,500 
Price adjustments recognized against gross accounts receivable26,205 23,035 
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 July 3, 2022, total deferred revenue was $26.8 million, and of this amount, $19.8 million is expected to be recognized within the next twelve months, and the remaining $7.0 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 six months ended July 3, 2022 and July 4, 2021, respectively:
20222021
(In thousands)
Beginning balance at January 1$19,390 $11,130 
New deferrals8,857 3,751 
Acquisitions6,567 5,997 
Revenue recognized(3,365)(1,272)
Balance at the end of Q131,449 19,606 
New deferrals4,265 4,127 
Acquisitions— (2,740)
Revenue recognized(8,880)(83)
Balance at the end of Q2$26,834 $20,910 
Service-type warranties represent $8.2 million of the deferred revenue balance at July 3, 2022, and of this amount $3.7 million is expected to be recognized in the next twelve months, and the remaining $4.5 million is long-term and will be recognized over a period greater than twelve months.
As of July 3, 2022 and December 31, 2021, we did not have any material contract assets recorded in the Condensed Consolidated Balance Sheets. We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions when the original duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. We did not have any capitalized sales commissions on our balance sheet as of July 3, 2022 and December 31, 2021.
The following table presents sales commissions that are recorded within selling, general and administrative expenses:
Three Months EndedSix Months ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
(In thousands)
Sales commissions$6,131 $4,653 $11,354 $8,435