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Segment Information (Tables) | 9 Months Ended
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Sep. 29, 2024
Segment Reporting [Abstract] |
Schedule of Reportable Segments and Reconciliation of Segment Contribution Income to Income (Loss) Before Income Taxes | Financial information for each reportable segment and a reconciliation of segment contribution income to income (loss) before income taxes is as follows:
|  | Three Months Ended |  |  | Nine Months Ended |  |
(In thousands, except percentage data) |  | September 29, 2024 |  |  | October 1, 2023 |  |  | September 29, 2024 |  |  | October 1, 2023 |  |
Net Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
NETGEAR for Business |  | $ | 78,530 |  |  | $ | 70,510 |  |  | $ | 207,020 |  |  | $ | 223,679 |  |
Connected Home |  |  | 104,324 |  |  |  | 127,335 |  |  |  | 284,320 |  |  |  | 328,487 |  |
Total net revenue |  | $ | 182,854 |  |  | $ | 197,845 |  |  | $ | 491,340 |  |  | $ | 552,166 |  |
Contribution Income (Loss): |  |  |  |  |  |  |  |  |  |  |  |  |
NETGEAR for Business |  | $ | 16,133 |  |  | $ | 14,547 |  | * | $ | 28,098 |  |  | $ | 42,254 |  | *
Contribution margin |  |  | 20.5 | % |  |  | 20.6 | % | * |  | 13.6 | % |  |  | 18.9 | % | *
Connected Home |  | $ | (4,780 | ) |  | $ | 9,465 |  | * | $ | (24,714 | ) |  | $ | 2,336 |  | *
Contribution margin |  |  | (4.6 | )% |  |  | 7.4 | % | * |  | (8.7 | )% |  |  | 0.7 | % | *
Total segment contribution income |  | $ | 11,353 |  |  | $ | 24,012 |  | * | $ | 3,384 |  |  | $ | 44,590 |  | *
Corporate and unallocated costs |  |  | (9,708 | ) |  |  | (18,760 | ) | * |  | (48,864 | ) |  |  | (57,145 | ) | *
Amortization of intangibles |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (257 | ) |
Stock-based compensation expense |  |  | (5,620 | ) |  |  | (4,285 | ) |  |  | (16,052 | ) |  |  | (13,637 | ) |
Intangibles impairment |  |  | — |  |  |  | (1,071 | ) |  |  | — |  |  |  | (1,071 | ) |
Restructuring and other charges |  |  | (1,072 | ) |  |  | (366 | ) |  |  | (3,792 | ) |  |  | (2,703 | ) |
Litigation reserves, net |  |  | 100,855 |  |  |  | (178 | ) |  |  | 92,625 |  |  |  | (178 | ) |
Other income, net (1) |  |  | 3,485 |  |  |  | 2,280 |  |  |  | 9,048 |  |  |  | 11,685 |  |
Income (loss) before income taxes |  | $ | 99,293 |  |  | $ | 1,632 |  |  | $ | 36,349 |  |  | $ | (18,716 | ) |
(1) Amounts included gain/(loss), net from derivatives not designated as hedging instruments of $(1.6) million and $0.5 million, for the three and nine months ended September 29, 2024, respectively, and $1.3 million and $2.2 million, for the three and nine months ended October 1, 2023, respectively, and gain/(loss), net from a litigation settlement of $6.0 million for the nine months ended October 1, 2023. * F inancial information for each reportable segment in the prior year periods were recast to conform to the current reportable segment structure.
Schedule of Net Revenue by Geography | The following table shows net revenue by geography:
|  | Three Months Ended |  |  | Nine Months Ended |
(In thousands) |  | September 29, 2024 |  |  | October 1, 2023 |  |  | September 29, 2024 |  |  | October 1, 2023 |
United States (U.S.) |  | $ | 124,305 |  |  | $ | 138,013 |  |  | $ | 324,388 |  |  | $ | 368,772 |
Americas (excluding U.S.) |  |  | 3,447 |  |  |  | 3,005 |  |  |  | 8,795 |  |  |  | 10,779 |
EMEA (1) |  |  | 32,798 |  |  |  | 35,684 |  |  |  | 91,340 |  |  |  | 111,023 |
APAC (1) |  |  | 22,304 |  |  |  | 21,143 |  |  |  | 66,817 |  |  |  | 61,592 |
Total net revenue |  | $ | 182,854 |  |  | $ | 197,845 |  |  | $ | 491,340 |  |  | $ | 552,166 |
(1) No in dividual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
Schedule of Long-Lived Asset By Geographic Region | The following table presents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets:
(In thousands) |  | September 29, 2024 |  |  | December 31, 2023 |
United States (U.S.) |  | $ | 20,082 |  |  | $ | 25,051 |
Canada |  |  | 5,583 |  |  |  | 4,714 |
Americas (excluding U.S. and Canada) |  |  | 38 |  |  |  | 68 |
EMEA |  |  | 3,267 |  |  |  | 3,739 |
Singapore |  |  | 5,195 |  |  |  | 6,218 |
APAC (excluding Singapore) (1) |  |  | 7,233 |  |  |  | 5,768 |
Total |  | $ | 41,398 |  |  | $ | 45,558 |
(1) No individual country represented more than 10% of the Company’s total long-lived assets in the periods presented.

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