Revenues

12 Months Ended

Dec. 31, 2024

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. 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 Solutions		Automation Solutions		Smart Buildings Solutions		Total  Revenues
Year Ended December 31, 2024
Smart Infrastructure Solutions	$	598,215	$	—	$	545,575	$	1,143,790
Automation Solutions	—		1,317,189		—		1,317,189
Total	$	598,215	$	1,317,189	$	545,575	$	2,460,979
Year Ended December 31, 2023
Smart Infrastructure Solutions	$	555,030	$	—	$	567,801	$	1,122,831
Automation Solutions	—		1,389,253		—		1,389,253
Total	$	555,030	$	1,389,253	$	567,801	$	2,512,084
Year Ended December 31, 2022
Smart Infrastructure Solutions	$	571,426	$	—	$	627,052	$	1,198,478
Automation Solutions	—		1,408,007		—		1,408,007
Total	$	571,426	$	1,408,007	$	627,052	$	2,606,485

The following table presents 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, 2024
Smart Infrastructure Solutions	$	853,539	$	173,023	$	117,228	$	1,143,790
Automation Solutions	782,312		335,396		199,481		1,317,189
Total	$	1,635,851	$	508,419	$	316,709	$	2,460,979
Year Ended December 31, 2023
Smart Infrastructure Solutions	$	824,991	$	180,880	$	116,960	$	1,122,831
Automation Solutions	787,739		385,454		216,060		1,389,253
Total	$	1,612,730	$	566,334	$	333,020	$	2,512,084
Year Ended December 31, 2022
Smart Infrastructure Solutions	$	915,491	$	149,327	$	133,660	$	1,198,478
Automation Solutions	816,508		372,473		219,026		1,408,007
Total	$	1,731,999	$	521,800	$	352,686	$	2,606,485

We generate revenues primarily by selling products and delivering complete connection solutions. 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 standalone selling price using the prices charged to customers on a standalone basis. Typically, payments are due after control transfers.

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 to the customer, which generally occurs when the product has been shipped or delivered from our facility to our customers, the customer has legal title to the product, and we have a present right to payment for the product. We also consider any customer acceptance clauses in determining when control has transferred to the customer and typically, these clauses are not substantive.

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. For example, our estimate of price adjustments is generally based on our historical price adjustments as a percentage of revenues and the average time period between the original sale and the issuance of the price adjustment. We adjust our estimate of revenue for variable consideration at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. We adjust other current assets and cost of sales for the estimated level of returns. Adjustments to revenue for performance obligations satisfied in prior periods was not significant during the year ended December 31, 2024.

The following table presents estimated and accrued variable consideration:

	December 31, 2024		December 31, 2023
	(In thousands)
Accrued rebates included in accrued liabilities	$	51,063	$	49,255
Accrued returns included in accrued liabilities	15,950		15,570
Price adjustment recognized against gross accounts receivable	29,100		26,005

Depending on the terms of an arrangement, we may defer the recognition of a portion of the consideration received because we must satisfy a future performance 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. Our contract terms for support, maintenance, and professional services normally require payment within one year or less of when the services will be provided. As of December 31, 2024, total deferred revenue was $40.1 million, and of this amount, $29.8 million is expected to be recognized within the next twelve months, and the remaining $10.3 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, 2022	$	33,243
New deferrals	35,157
Acquisitions	104
Revenue recognized	(37,442)
Balance at December 31, 2023	$	31,062
New deferrals	57,133
Revenue recognized	(48,067)
Balance at December 31, 2024	$	40,128

Service-type warranties represent $12.9 million of the deferred revenue balance at December 31, 2024, and of this amount $4.9 million is expected to be recognized in the next twelve months, and the remaining $8.0 million is long-term and will be recognized over a period greater than twelve months. At December 31, 2024, we did not have any material contract assets recorded in the 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. Total capitalized sales commissions were not material for the years ended December 31, 2024, 2023, and 2022. We recognized $25.4 million, $24.5 million, and $24.1 million of sales commissions expense in selling, general, and administrative expenses during the years ended December 31, 2024, 2023 and 2022, respectively.