Operating Segments | Operating Segments We are organized around four global business platforms: Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions. Each of the global business platforms represents a reportable segment. To leverage the Company's strengths in networking, IoT, and cybersecurity technologies, effective January 1, 2017, we formed a new segment called Network Solutions, which represents the combination of the prior Industrial IT Solutions and Network Security Solutions segments. The formation of this new segment is a natural evolution in our organic and inorganic strategies for a range of industrial and non-industrial applications. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. This change had no impact to our reporting units for purposes of goodwill impairment testing. Beginning in 2017, sales of certain audio-visual cable that had previously been reported in our Broadcast Solutions segment are now reported in our Enterprise Solutions segment. As the annual revenues associated with this product line are not material, we have not revised the prior period segment information. 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 Solutions Industrial Solutions Network Solutions Total Segments (In thousands) As of and for the three months ended July 2, 2017 Segment revenues $ 188,071 $ 160,733 $ 159,255 $ 102,574 $ 610,633 Affiliate revenues 94 1,545 275 32 1,946 Segment EBITDA 29,610 26,801 31,036 22,780 110,227 Depreciation expense 4,058 2,695 3,168 1,607 11,528 Amortization expense 13,453 429 640 12,591 27,113 Severance, restructuring, and acquisition integration costs 970 8,141 346 103 9,560 Purchase accounting effects of acquisitions 1,167 — — — 1,167 Segment assets 359,160 275,770 282,068 105,070 1,022,068 As of and for the three months ended July 3, 2016 Segment revenues $ 193,521 $ 160,401 $ 147,808 $ 101,651 $ 603,381 Affiliate revenues 173 1,328 214 4 1,719 Segment EBITDA 29,505 29,575 27,064 22,191 108,335 Depreciation expense 4,061 3,429 2,709 1,788 11,987 Amortization expense 13,420 432 601 11,810 26,263 Severance, restructuring, and acquisition integration costs 1,319 1,207 2,371 972 5,869 Deferred gross profit adjustments 494 — — 1,256 1,750 Segment assets 329,250 253,424 255,250 107,176 945,100 As of and for the six months ended July 2, 2017 Segment revenues $ 356,667 $ 306,415 $ 305,436 $ 193,496 $ 1,162,014 Affiliate revenues 195 4,103 662 92 5,052 Segment EBITDA 55,010 50,901 56,769 40,657 203,337 Depreciation expense 8,007 5,294 6,374 3,236 22,911 Amortization expense 23,468 853 1,282 25,179 50,782 Severance, restructuring, and acquisition integration costs 1,378 13,014 1,467 301 16,160 Purchase accounting effects of acquisitions 1,167 — — — 1,167 Segment assets 359,160 275,770 282,068 105,070 1,022,068 As of and for the six months ended July 3, 2016 Segment revenues $ 364,793 $ 296,293 $ 288,899 $ 197,196 $ 1,147,181 Affiliate revenues 597 3,027 396 32 4,052 Segment EBITDA 52,772 53,311 50,051 42,267 198,401 Depreciation expense 8,023 6,818 5,427 3,382 23,650 Amortization expense 26,351 861 1,192 23,391 51,795 Severance, restructuring, and acquisition integration costs 5,697 1,707 3,236 3,637 14,277 Purchase accounting effects of acquisitions 195 — — — 195 Deferred gross profit adjustments 1,108 — — 2,945 4,053 Segment assets 329,250 253,424 255,250 107,176 945,100 The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income before taxes, respectively. Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Total Segment Revenues $ 610,633 $ 603,381 $ 1,162,014 $ 1,147,181 Deferred revenue adjustments (1) — (1,750 ) — (4,053 ) Consolidated Revenues $ 610,633 $ 601,631 $ 1,162,014 $ 1,143,128 Total Segment EBITDA $ 110,227 $ 108,335 $ 203,337 $ 198,401 Amortization of intangibles (27,113 ) (26,263 ) (50,782 ) (51,795 ) Depreciation expense (11,528 ) (11,987 ) (22,911 ) (23,650 ) Severance, restructuring, and acquisition integration costs (2) (9,560 ) (5,869 ) (16,160 ) (14,277 ) Purchase accounting effects related to acquisitions (3) (1,167 ) — (1,167 ) (195 ) Deferred gross profit adjustments (1) — (1,750 ) — (4,053 ) Income from equity method investment 2,277 661 3,284 491 Eliminations (655 ) (886 ) (1,783 ) (1,717 ) Consolidated operating income 62,481 62,241 113,818 103,205 Interest expense, net (23,533 ) (24,049 ) (47,039 ) (48,445 ) Loss on debt extinguishment (847 ) — (847 ) — Consolidated income before taxes $ 38,101 $ 38,192 $ 65,932 $ 54,760 (1) For the three and six months ended July 3, 2016 , our segment results include revenues that would have been recorded by acquired businesses had they remained as independent entities. Our consolidated results do not include these revenues due to the purchase accounting effect of recording deferred revenue at fair value. (2) See Note 8, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the three and six months ended July 2, 2017 and July 3, 2016 , we recognized cost of sales for the adjustment of acquired inventory to fair value related to the Thinklogical and M2FX acquisitions, respectively. |