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 & 5G Cyber-security Industrial Automation Smart Buildings Total Three Months Ended September 27, 2020 (In thousands) Enterprise Solutions $ 115,149 $ — $ — $ 113,948 $ 229,097 Industrial Solutions — 27,384 219,358 — 246,742 Total $ 115,149 $ 27,384 $ 219,358 $ 113,948 $ 475,839 Three Months Ended September 29, 2019 Enterprise Solutions $ 107,067 $ — $ — $ 140,169 $ 247,236 Industrial Solutions — 29,760 256,102 — 285,862 Total $ 107,067 $ 29,760 $ 256,102 $ 140,169 $ 533,098 Nine Months Ended September 27, 2020 Enterprise Solutions $ 318,765 $ — $ — $ 325,919 $ 644,684 Industrial Solutions — 78,829 640,663 — 719,492 Total $ 318,765 $ 78,829 $ 640,663 $ 325,919 $ 1,364,176 Nine Months Ended September 29, 2019 Enterprise Solutions $ 287,338 $ — $ — $ 412,306 $ 699,644 Industrial Solutions — 96,054 785,892 — 881,946 Total $ 287,338 $ 96,054 $ 785,892 $ 412,306 $ 1,581,590 The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product. Americas EMEA APAC Total Revenues Three Months Ended September 27, 2020 (In thousands) Enterprise Solutions $ 170,734 $ 30,185 $ 28,178 $ 229,097 Industrial Solutions 148,421 59,180 39,141 246,742 Total $ 319,155 $ 89,365 $ 67,319 $ 475,839 Three Months Ended September 29, 2019 Enterprise Solutions $ 183,183 $ 36,065 $ 27,988 $ 247,236 Industrial Solutions 175,869 68,386 41,607 285,862 Total $ 359,052 $ 104,451 $ 69,595 $ 533,098 Nine Months Ended September 27, 2020 Enterprise Solutions $ 481,007 $ 92,197 $ 71,480 $ 644,684 Industrial Solutions 429,461 182,406 107,625 719,492 Total $ 910,468 $ 274,603 $ 179,105 $ 1,364,176 Nine Months Ended September 29, 2019 Enterprise Solutions $ 508,616 $ 106,823 $ 84,205 $ 699,644 Industrial Solutions 544,780 219,105 118,061 881,946 Total $ 1,053,396 $ 325,928 $ 202,266 $ 1,581,590 We generate revenues primarily by selling products that provide secure and reliable transmission of data, sound, and video for mission critical applications. 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 selling price and recognized when or as each performance obligation is satisfied. 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. Generally, we determine relative selling price using the prices charged to customers on a standalone basis. 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 September 27, 2020 and September 29, 2019. The following table presents estimated and accrued variable consideration: September 27, 2020 September 29, 2019 (in thousands) Accrued rebates $ 25,085 $ 29,430 Accrued returns 12,001 10,292 Price adjustments recognized against gross accounts receivable 27,234 29,908 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 typically paid in advance and 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. As of September 27, 2020, total deferred revenue was $70.2 million, and of this amount, $46.1 million is expected to be recognized within the next twelve months, and the remaining $24.1 million is long-term and is expected to be recognized over a period greater than twelve months. The following table presents deferred revenue activity: 2020 2019 (In thousands) Beginning balance $ 70,070 $ 72,358 New deferrals 23,830 26,033 Revenue recognized (24,415) (32,168) Balance at March 29, 2020 69,485 66,223 New deferrals 21,322 21,892 Revenue recognized (22,200) (24,807) Balance at June 28, 2020 68,607 63,308 New deferrals 22,243 21,937 Revenue recognized (20,649) (25,063) Balance at September 27, 2020 $ 70,201 $ 60,182 We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions in other current and long-lived assets on our balance sheet 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 was $4.6 million as of September 27, 2020 and $3.0 million as of September 29, 2019. The following table presents sales commissions that are recorded within selling, general and administrative expenses: Three Months ended Nine Months ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 (In thousands) Sales commissions $ 4,240 $ 4,535 $ 12,270 $ 14,079 |