Operating Segments | Operating Segments We are organized around five global business platforms: Broadcast, Enterprise Connectivity, Industrial Connectivity, Industrial IT, and Network Security. Each of the global business platforms represents a reportable segment. To capitalize on the adoption of IP technology and accelerate our penetration of the commercial audio-video market, we transferred responsibility of audio-video cable and connectors from our Broadcast platform to our Enterprise Connectivity platform effective January 1, 2016. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. This transfer had no impact to our reporting units for purposes of goodwill impairment testing. The key measures of segment profit or loss reviewed by our chief operating decision maker are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues and include revenues that would have otherwise been recorded by acquired businesses as independent entities but were not recognized in our Consolidated Statements of Operations due to the effects of purchase accounting and the associated write-down of acquired deferred revenue to fair value. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory and deferred revenue to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation. Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Broadcast Solutions Enterprise Connectivity Solutions Industrial Connectivity Solutions Industrial IT Solutions Network Security Solutions Total Segments (In thousands) As of and for the three months ended October 2, 2016 Segment revenues $ 196,173 $ 156,658 $ 149,847 $ 60,168 $ 39,622 $ 602,468 Affiliate revenues 46 1,587 511 13 — 2,157 Segment EBITDA 36,545 27,294 23,649 12,771 11,677 111,936 Depreciation expense 4,063 3,210 2,738 565 1,027 11,603 Amortization expense 10,955 431 604 1,501 10,317 23,808 Severance, restructuring, and acquisition integration costs 174 5,573 4,746 2,302 — 12,795 Deferred gross profit adjustments 283 — — — 1,076 1,359 Segment assets 314,020 265,085 261,923 62,828 43,110 946,966 As of and for the three months ended September 27, 2015 Segment revenues $ 186,722 $ 155,148 $ 147,702 $ 59,184 $ 41,359 $ 590,115 Affiliate revenues 42 1,630 355 37 — 2,064 Segment EBITDA 27,369 25,705 23,225 10,466 11,240 98,005 Depreciation expense 4,027 3,156 2,810 570 1,255 11,818 Amortization expense 12,354 429 799 1,480 10,607 25,669 Severance, restructuring, and acquisition integration costs 13,722 192 118 54 57 14,143 Deferred gross profit adjustments 419 — — — 10,909 11,328 Segment assets 346,271 266,248 250,622 61,441 41,520 966,102 As of and for the nine months ended October 2, 2016 Segment revenues $ 560,966 $ 452,951 $ 438,746 $ 176,560 $ 120,426 $ 1,749,649 Affiliate revenues 644 4,615 906 44 — 6,209 Segment EBITDA 89,317 80,605 73,700 34,056 32,659 310,337 Depreciation expense 12,086 10,028 8,165 1,749 3,225 35,253 Amortization expense 37,306 1,292 1,796 4,517 30,692 75,603 Severance, restructuring, and acquisition integration costs 5,871 7,280 7,982 5,910 29 27,072 Purchase accounting effects of acquisitions 195 — — — — 195 Deferred gross profit adjustments 1,391 — — — 4,021 5,412 Segment assets 314,020 265,085 261,923 62,828 43,110 946,966 As of and for the nine months ended September 27, 2015 Segment revenues $ 538,145 $ 458,756 $ 461,549 $ 181,527 $ 118,102 $ 1,758,079 Affiliate revenues 24 5,328 1,086 68 8 6,514 Segment EBITDA 73,374 75,506 76,078 31,731 29,913 286,602 Depreciation expense 12,140 9,550 8,530 1,713 3,118 35,051 Amortization expense 37,375 1,290 2,429 4,369 32,627 78,090 Severance, restructuring, and acquisition integration costs 28,532 843 3,054 2 1,102 33,533 Purchase accounting effects of acquisitions — — 267 — 9,155 9,422 Deferred gross profit adjustments 2,789 — — — 43,637 46,426 Segment assets 346,271 266,248 250,622 61,441 41,520 966,102 The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) (In thousands) Total Segment Revenues $ 602,468 $ 590,115 $ 1,749,649 $ 1,758,079 Deferred revenue adjustments (1) (1,359 ) (10,849 ) (5,412 ) (46,101 ) Consolidated Revenues $ 601,109 $ 579,266 $ 1,744,237 $ 1,711,978 Total Segment EBITDA $ 111,936 $ 98,005 $ 310,337 $ 286,602 Amortization of intangibles (23,808 ) (25,669 ) (75,603 ) (78,090 ) Deferred gross profit adjustments (1) (1,359 ) (11,328 ) (5,412 ) (46,426 ) Severance, restructuring, and acquisition integration costs (2) (12,795 ) (14,143 ) (27,072 ) (33,533 ) Depreciation expense (11,603 ) (11,818 ) (35,253 ) (35,051 ) Purchase accounting effects related to acquisitions (3) — — (195 ) (9,422 ) Income from equity method investment 586 348 1,077 1,459 Eliminations (977 ) (893 ) (2,694 ) (1,996 ) Consolidated operating income 61,980 34,502 165,185 83,543 Interest expense, net (23,513 ) (25,416 ) (71,958 ) (74,031 ) Consolidated income from continuing operations before taxes $ 38,467 $ 9,086 $ 93,227 $ 9,512 (1) For both the three and nine months ended October 2, 2016 and September 27, 2015 , both our consolidated revenues and gross profit were negatively impacted by the reduction of the acquired deferred revenue balance to fair value associated with our 2015 acquisition of Tripwire. (2) See Note 7, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the nine months ended October 2, 2016 , we recognized $0.2 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of M2FX. For the nine months ended September 27, 2015 , we recognized $9.2 million of compensation expense related to the accelerated vesting of acquiree stock based compensation awards associated with our acquisition of Tripwire. In addition, we recognized $0.3 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of Coast. |