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Segment Information (Tables)

9 Months Ended

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.

* Financial 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 individual 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.

X

- Definition

Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment.

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