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Revenue | 9 Months Ended
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Sep. 29, 2024
Revenue from Contract with Customer [Abstract] |
Revenue | Note 3. Rev enue Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced. The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of September 29, 2024:
(In thousands) |  | Less than 1 year |  |  | 1 to 2 years |  |  | Beyond 2 years |  |  | Total |
Performance obligations |  | $ | 66,991 |  |  | $ | 3,546 |  |  | $ | 2,209 |  |  | $ | 72,746 |
Contract Balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets. Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer. The following table reflects the contract balances:
(In thousands) |  | Balance Sheet Location |  | September 29, 2024 |  |  | December 31, 2023 |
Accounts receivable, net |  | Accounts receivable, net |  | $ | 177,326 |  |  | $ | 185,059 |
Contract liabilities – current |  | Deferred revenue |  | $ | 29,596 |  |  | $ | 27,091 |
Contract liabilities – non-current |  | Other non-current liabilities |  | $ | 5,472 |  |  | $ | 4,903 |
The difference in the balances of the Company’s contract assets and liabilities as of September 29, 2024 and December 31, 2023, primarily results from the timing difference between the Company’s performance and the customer’s payment. During the nine months ended September 29, 2024, $37.9 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $34.8 million of revenue was recognized for the satisfaction of performance obligations and $23.9 million of this recognized revenue was included in the contract liability balance at the beginning of the period. There were no significant changes in estimates during the period that would affect the contract balances. Disaggregation of Revenue In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in two segments: NETGEAR for Business (formerly known as Small and Medium Business, or SMB) and Connected Home. Sales and usage-based taxes are excluded from n et revenue.
|  | Three Months Ended |  |
|  | September 29, 2024 |  |  | October 1, 2023 |  |
(In thousands) |  | NETGEAR for Business |  |  | Connected Home |  |  | Total |  |  | NETGEAR for Business |  |  | Connected Home |  |  | Total |  |
Geographic regions (1) : |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 42,035 |  |  | $ | 85,717 |  |  | $ | 127,752 |  |  | $ | 36,323 |  |  | $ | 104,695 |  |  | $ | 141,018 |  |
EMEA |  |  | 22,975 |  |  |  | 9,823 |  |  |  | 32,798 |  |  |  | 24,786 |  |  |  | 10,898 |  |  |  | 35,684 |  |
APAC |  |  | 13,520 |  |  |  | 8,784 |  |  |  | 22,304 |  |  |  | 9,401 |  |  |  | 11,742 |  |  |  | 21,143 |  |
Total |  | $ | 78,530 |  |  | $ | 104,324 |  |  | $ | 182,854 |  |  | $ | 70,510 |  |  | $ | 127,335 |  |  | $ | 197,845 |  |
Sales channels: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service provider |  | $ | 268 |  |  | $ | 22,949 |  |  | $ | 23,217 |  |  | $ | 219 |  |  | $ | 32,403 |  |  | $ | 32,622 |  |
Non-service provider |  |  | 78,262 |  |  |  | 81,375 |  |  |  | 159,637 |  |  |  | 70,291 |  |  |  | 94,932 |  |  |  | 165,223 |  |
Total |  | $ | 78,530 |  |  | $ | 104,324 |  |  | $ | 182,854 |  |  | $ | 70,510 |  |  | $ | 127,335 |  |  | $ | 197,845 |  |
|  | Nine Months Ended |
|  | September 29, 2024 |  |  | October 1, 2023 |
(In thousands) |  | NETGEAR for Business |  |  | Connected Home |  |  | Total |  |  | NETGEAR for Business |  |  | Connected Home |  |  | Total |
Geographic regions (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 103,189 |  |  | $ | 229,994 |  |  | $ | 333,183 |  |  | $ | 113,172 |  |  | $ | 266,379 |  |  | $ | 379,551 |
EMEA |  |  | 64,549 |  |  |  | 26,791 |  |  |  | 91,340 |  |  |  | 76,744 |  |  |  | 34,279 |  |  |  | 111,023 |
APAC |  |  | 39,282 |  |  |  | 27,535 |  |  |  | 66,817 |  |  |  | 33,763 |  |  |  | 27,829 |  |  |  | 61,592 |
Total |  | $ | 207,020 |  |  | $ | 284,320 |  |  | $ | 491,340 |  |  | $ | 223,679 |  |  | $ | 328,487 |  |  | $ | 552,166 |
Sales channels: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service provider |  | $ | 713 |  |  | $ | 70,234 |  |  | $ | 70,947 |  |  | $ | 427 |  |  | $ | 71,346 |  |  | $ | 71,773 |
Non-service provider |  |  | 206,307 |  |  |  | 214,086 |  |  |  | 420,393 |  |  |  | 223,252 |  |  |  | 257,141 |  |  |  | 480,393 |
Total |  | $ | 207,020 |  |  | $ | 284,320 |  |  | $ | 491,340 |  |  | $ | 223,679 |  |  | $ | 328,487 |  |  | $ | 552,166 |
(1) No i ndividual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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