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Revenues
9 Months Ended
Oct. 01, 2023
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
 Solutions
Industrial AutomationSmart BuildingsTotal 
Revenues 
Three Months Ended October 1, 2023(In thousands)
Enterprise Solutions$146,048 $— $137,857 $283,905 
Industrial Automation Solutions— 342,902 — 342,902 
Total$146,048 $342,902 $137,857 $626,807 
Three Months Ended October 2, 2022 
Enterprise Solutions$155,865 $— $163,336 $319,201 
Industrial Automation Solutions— 351,290 — 351,290 
Total$155,865 $351,290 $163,336 $670,491 
Nine Months Ended October 1, 2023
Enterprise Solutions$436,935 $— $434,842 $871,777 
Industrial Automation Solutions— 1,089,064 — 1,089,064 
Total$436,935 $1,089,064 $434,842 $1,960,841 
Nine Months Ended October 2, 2022
Enterprise Solutions$424,441 $— $470,634 $895,075 
Industrial Automation Solutions— 1,052,338 — 1,052,338 
Total$424,441 $1,052,338 $470,634 $1,947,413 
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 1, 2023(In thousands)
Enterprise Solutions$199,002 $51,476 $33,427 $283,905 
Industrial Automation Solutions195,154 92,189 55,559 342,902 
Total$394,156 $143,665 $88,986 $626,807 
Three Months Ended October 2, 2022   
Enterprise Solutions$247,322 $35,045 $36,834 $319,201 
Industrial Automation Solutions202,632 87,828 60,830 351,290 
Total$449,954 $122,873 $97,664 $670,491 
Nine Months Ended October 1, 2023
Enterprise Solutions$659,360 $125,595 $86,822 $871,777 
Industrial Automation Solutions624,219 303,165 161,680 1,089,064 
Total$1,283,579 $428,760 $248,502 $1,960,841 
Nine Months Ended October 2, 2022
Enterprise Solutions$685,209 $110,931 $98,935 $895,075 
Industrial Automation Solutions620,987 270,044 161,307 1,052,338 
Total$1,306,196 $380,975 $260,242 $1,947,413 
We generate revenues primarily by selling products that support communication, infrastructure, and delivery solutions that make the digital journey simpler, smarter, and secure. 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 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 nine months ended October 1, 2023 and October 2, 2022.
The following table presents estimated and accrued variable consideration:
October 1, 2023December 31, 2022
(in thousands)
Accrued rebates included in accrued liabilities$37,872 $55,559 
Accrued returns included in accrued liabilities13,722 11,700 
Price adjustments recognized against gross accounts receivable26,871 24,304 

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 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. Our contract terms for support, maintenance, and professional services typically require payment within one year or less of when the services will be provided. As of October 1, 2023, total deferred revenue was $27.7 million, and of this amount, $21.5 million is expected to be recognized within the next twelve months, and the remaining $6.2 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 1, 2023 and October 2, 2022, respectively:
20232022
(In thousands)
Beginning balance at January 1$33,243 $19,390 
New deferrals4,359 8,857 
Acquisitions— 6,567 
Revenue recognized(8,307)(3,365)
Balance at the end of Q1$29,295 $31,449 
New deferrals6,900 4,265 
Revenue recognized(6,528)(8,880)
Balance at the end of Q2$29,667 $26,834 
New deferrals9,146 7,137 
Acquisitions104 — 
Revenue recognized(11,224)(4,960)
Balance at the end of Q3$27,693 $29,011 
Service-type warranties represent $9.9 million of the deferred revenue balance at October 1, 2023, and of this amount $6.1 million is expected to be recognized in the next twelve months, and the remaining $3.8 million is long-term and will be recognized over a period greater than twelve months. As of October 1, 2023 and December 31, 2022, 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 October 1, 2023 and December 31, 2022. The following table presents sales commissions that are recorded within selling, general and administrative expenses:
Three Months EndedNine Months ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
(In thousands)
Sales commissions$4,729 $6,372 $16,819 $17,721