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 October 1, 2017 Segment revenues $ 193,753 $ 167,089 $ 160,471 $ 100,432 $ 621,745 Affiliate revenues 129 1,419 332 — 1,880 Segment EBITDA 35,671 26,409 30,545 24,906 117,531 Depreciation expense 4,088 2,740 3,285 1,570 11,683 Amortization expense 13,482 438 646 12,596 27,162 Severance, restructuring, and acquisition integration costs 3,056 6,253 6,840 530 16,679 Purchase accounting effects of acquisitions 2,922 — — — 2,922 Segment assets 373,848 284,327 291,984 108,554 1,058,713 As of and for the three months ended October 2, 2016 Segment revenues $ 196,173 $ 156,658 $ 149,847 $ 99,790 $ 602,468 Affiliate revenues 46 1,587 511 13 2,157 Segment EBITDA 36,545 27,294 23,649 24,448 111,936 Depreciation expense 4,063 3,210 2,738 1,592 11,603 Amortization expense 10,955 431 604 11,818 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 314,020 265,085 261,923 105,938 946,966 As of and for the nine months ended October 1, 2017 Segment revenues $ 550,420 $ 473,504 $ 465,907 $ 293,928 $ 1,783,759 Affiliate revenues 324 5,522 994 92 6,932 Segment EBITDA 90,681 77,310 87,314 65,563 320,868 Depreciation expense 12,095 8,034 9,659 4,806 34,594 Amortization expense 36,950 1,291 1,928 37,775 77,944 Severance, restructuring, and acquisition integration costs 4,434 19,267 8,307 831 32,839 Purchase accounting effects of acquisitions 4,089 — — — 4,089 Segment assets 373,848 284,327 291,984 108,554 1,058,713 As of and for the nine months ended October 2, 2016 Segment revenues $ 560,966 $ 452,951 $ 438,746 $ 296,986 $ 1,749,649 Affiliate revenues 644 4,615 906 44 6,209 Segment EBITDA 89,317 80,605 73,700 66,715 310,337 Depreciation expense 12,086 10,028 8,165 4,974 35,253 Amortization expense 37,306 1,292 1,796 35,209 75,603 Severance, restructuring, and acquisition integration costs 5,871 7,280 7,982 5,939 27,072 Purchase accounting effects of acquisitions 195 — — — 195 Deferred gross profit adjustments 1,391 — — 4,021 5,412 Segment assets 314,020 265,085 261,923 105,938 946,966 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 Nine Months Ended October 1, 2017 October 2, 2016 October 1, 2017 October 2, 2016 (In thousands) Total Segment Revenues $ 621,745 $ 602,468 $ 1,783,759 $ 1,749,649 Deferred revenue adjustments (1) — (1,359 ) — (5,412 ) Consolidated Revenues $ 621,745 $ 601,109 $ 1,783,759 $ 1,744,237 Total Segment EBITDA $ 117,531 $ 111,936 $ 320,868 $ 310,337 Amortization of intangibles (27,162 ) (23,808 ) (77,944 ) (75,603 ) Severance, restructuring, and acquisition integration costs (2) (16,679 ) (12,795 ) (32,839 ) (27,072 ) Depreciation expense (11,683 ) (11,603 ) (34,594 ) (35,253 ) Purchase accounting effects related to acquisitions (3) (2,922 ) — (4,089 ) (195 ) Deferred gross profit adjustments (1) — (1,359 ) — (5,412 ) Income from equity method investment 2,551 586 5,835 1,077 Eliminations (845 ) (977 ) (2,628 ) (2,694 ) Consolidated operating income 60,791 61,980 174,609 165,185 Interest expense, net (19,385 ) (23,513 ) (66,424 ) (71,958 ) Loss on debt extinguishment (51,594 ) — (52,441 ) — Consolidated income (loss) before taxes $ (10,188 ) $ 38,467 $ 55,744 $ 93,227 (1) For the three and nine months ended October 2, 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 nine months ended October 1, 2017 and nine months ended October 2, 2016 , we recognized cost of sales for the adjustment of acquired inventory to fair value related to the Thinklogical and M2FX acquisitions, respectively. |