Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 27, 2015 | Oct. 23, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NETGEAR, INC | |
Entity Central Index Key | 1,122,904 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 27, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,509,309 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 202,429 | $ 141,234 |
Short-term investments | 61,419 | 115,895 |
Accounts receivable, net | 274,173 | 275,689 |
Inventories | 170,013 | 222,883 |
Deferred income taxes | 29,430 | 29,039 |
Prepaid expenses and other current assets | 31,019 | 38,225 |
Total current assets | 768,483 | 822,965 |
Property and equipment, net | 23,951 | 29,694 |
Intangibles, net | 53,191 | 66,230 |
Goodwill | 81,721 | 81,721 |
Total other non-current assets | 47,405 | 48,077 |
Total assets | 974,751 | 1,048,687 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 98,171 | 106,357 |
Accrued employee compensation | 21,414 | 21,588 |
Other accrued liabilities | 132,911 | 143,742 |
Deferred revenue | 30,722 | 30,023 |
Income taxes payable | 5,258 | 2,406 |
Total current liabilities | 288,476 | 304,116 |
Non-current income taxes payable | 14,402 | 15,252 |
Other non-current liabilities | 10,412 | 7,754 |
Total liabilities | $ 313,290 | $ 327,122 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Common stock | $ 32 | $ 35 |
Additional paid-in capital | 474,875 | 454,144 |
Accumulated other comprehensive income (loss) | (43) | 38 |
Retained earnings | 186,597 | 267,348 |
Total stockholders’ equity | 661,461 | 721,565 |
Total liabilities and stockholders’ equity | $ 974,751 | $ 1,048,687 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Net revenue | $ 341,893 | $ 353,338 | $ 939,832 | $ 1,040,333 |
Cost of revenue | 245,566 | 251,005 | 677,569 | 742,889 |
Gross profit | 96,327 | 102,333 | 262,263 | 297,444 |
Operating expenses: | ||||
Research and development | 21,572 | 23,337 | 63,126 | 67,994 |
Sales and marketing | 35,923 | 39,283 | 107,538 | 117,373 |
General and administrative | 11,803 | 11,726 | 33,192 | 34,995 |
Restructuring and other charges | 1,016 | 1,360 | 6,384 | 2,190 |
Litigation reserves, net | 0 | 69 | (2,690) | 254 |
Total operating expenses | 70,314 | 75,775 | 207,550 | 222,806 |
Income from operations | 26,013 | 26,558 | 54,713 | 74,638 |
Interest income | 65 | 68 | 184 | 174 |
Other income (expense), net | (199) | 2,246 | (67) | 1,911 |
Income before income taxes | 25,879 | 28,872 | 54,830 | 76,723 |
Provision for income taxes | 10,780 | 8,847 | 28,053 | 27,582 |
Net income | $ 15,099 | $ 20,025 | $ 26,777 | $ 49,141 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.56 | $ 0.80 | $ 1.36 |
Diluted (in dollars per share) | $ 0.47 | $ 0.55 | $ 0.79 | $ 1.34 |
Weighted average shares used to compute net income per share: | ||||
Basic | 31,979 | 35,643 | 33,473 | 36,133 |
Diluted | 32,335 | 36,250 | 34,002 | 36,806 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Net income | $ 15,099 | $ 20,025 | $ 26,777 | $ 49,141 |
Other comprehensive income (loss), before tax: | ||||
Unrealized gain (loss) on derivative instruments | 10 | 139 | (102) | 66 |
Unrealized gain on available-for-sale securities | 6 | 2 | 34 | 25 |
Other comprehensive income (loss), before tax | 16 | 141 | (68) | 91 |
Tax expense related to items of other comprehensive income | (2) | (1) | (13) | (10) |
Other comprehensive income (loss), net of tax | 14 | 140 | (81) | 81 |
Comprehensive income | $ 15,113 | $ 20,165 | $ 26,696 | $ 49,222 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 26,777 | $ 49,141 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27,336 | 26,398 |
Purchase premium amortization/discount accretion on investments, net | (73) | 42 |
Non-cash stock-based compensation | 12,517 | 15,226 |
Income tax impact associated with stock option exercises | (1,049) | (394) |
Excess tax benefit from stock-based compensation | (252) | (340) |
Deferred income taxes | (149) | (2,133) |
Changes in assets and liabilities: | ||
Accounts receivable | 1,516 | (12,084) |
Inventories | 52,870 | 17,963 |
Prepaid expenses and other assets | 7,332 | (9,846) |
Accounts payable | (7,696) | (22,439) |
Accrued employee compensation | (174) | 4,021 |
Other accrued liabilities | (4,405) | (9,196) |
Deferred revenue | (899) | 9,221 |
Income taxes payable | 2,002 | 1,974 |
Net Cash Provided by Operating Activities | 115,653 | 67,554 |
Cash flows from investing activities: | ||
Purchases of short-term investments | (50,301) | (105,076) |
Proceeds from sales and maturities of short-term investments | 105,142 | 109,669 |
Purchase of property and equipment | (11,142) | (13,421) |
Payments made in connection with business acquisitions | 0 | 1,050 |
Net Cash Provided by (Used in) Investing Activities | 43,699 | (9,878) |
Cash flows from financing activities: | ||
Purchase and retirement of common stock | (107,531) | (68,006) |
Proceeds from exercise of stock options | 6,137 | 6,039 |
Proceeds from issuance of common stock under employee stock purchase plan | 2,985 | 2,762 |
Excess tax benefit from stock-based compensation | 252 | 340 |
Net Cash Used in Financing Activities | (98,157) | (58,865) |
Net increase (decrease) in cash and cash equivalents | 61,195 | (1,189) |
Cash and cash equivalents, at beginning of period | 141,234 | 143,009 |
Cash and cash equivalents, at end of period | $ 202,429 | $ 141,820 |
The Company And Basis of Presen
The Company And Basis of Presentation | 9 Months Ended |
Sep. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company And Basis of Presentation | The Company and Basis of Presentation NETGEAR, Inc. (“NETGEAR” or the “Company”) was incorporated in Delaware in January 1996. The Company is a global networking company that delivers innovative products to consumers, businesses and service providers. The Company's products are built on a variety of proven technologies such as wireless (WiFi and LTE), Ethernet and powerline, with a focus on reliability and ease-of-use. The product line consists of wired and wireless devices that enable networking, broadband access and network connectivity. These products are available in multiple configurations to address the needs of the end-users in each geographic region in which the Company's products are sold. The accompanying unaudited condensed consolidated financial statements include the accounts of NETGEAR, Inc. and its wholly owned subsidiaries. They have been prepared in accordance with established guidelines for interim financial reporting and with the instructions of Form 10-Q and Article 10 of Regulation S-X. All significant intercompany balances and transactions have been eliminated in consolidation. The balance sheet dated December 31, 2014 has been derived from audited financial statements at such date. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes typically found in the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments considered necessary (consisting only of normal recurring adjustments) to fairly state the Company’s financial position, results of operations, comprehensive income and cash flows for the periods indicated. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 . The Company’s fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its interim results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of net revenue and expenses during the reported period. Actual results could differ materially from those estimates and operating results for the three and nine months ended September 27, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any future period. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 27, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . The Company’s significant accounting policies have not materially changed during the nine months ended September 27, 2015 . Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customer" (Topic 606). The guidance in this update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. An entity should apply the amendments in the update either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. On July 9, 2015, the FASB concluded to delay the effective date of the new revenue standard by one year. ASU 2014-09 is effective for the Company beginning in the first quarter fiscal 2018. Early adoption is permitted but may not occur earlier than January 1, 2017, the original effective date of the standard for the Company. The Company is in the process of evaluating the available transition methods and the impact of this standard on its financial position, results of operations or cash flows. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory" (Topic 330). Under the current guidance, inventory is measured at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. Under the new guidance, inventory is required to be measured at the lower of cost or net realizable value. ASU 2015-11 should be applied on a prospective basis and is effective for the Company beginning in the first fiscal quarter of 2017. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its financial position, results of operations or cash flows. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 27, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Available-for-sale short-term investments (in thousands) As of September 27, 2015 December 31, 2014 Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cost Unrealized Gain Unrealized Loss Estimated Fair Value U.S. treasuries $ 60,067 $ 26 $ — $ 60,093 $ 114,944 $ 6 $ (15 ) $ 114,935 Certificates of deposit 269 — — 269 158 — — 158 Total $ 60,336 $ 26 $ — $ 60,362 $ 115,102 $ 6 $ (15 ) $ 115,093 The Company’s short-term investments are primarily comprised of marketable securities that are classified as available-for-sale and consist of government securities with an original maturity or remaining maturity at the time of purchase of greater than three months and no more than 12 months . Accordingly, none of the available-for-sale securities have unrealized losses greater than 12 months. Accounts receivable, net (in thousands) As of September 27, December 31, Gross accounts receivable $ 291,345 $ 296,239 Allowance for doubtful accounts (1,255 ) (1,255 ) Allowance for sales returns (14,394 ) (17,489 ) Allowance for price protection (1,523 ) (1,806 ) Total allowances (17,172 ) (20,550 ) Total accounts receivable, net $ 274,173 $ 275,689 Inventories (in thousands) As of September 27, December 31, Raw materials $ 2,382 $ 3,625 Work in process 1 8 Finished goods 167,630 219,250 Total inventories $ 170,013 $ 222,883 The Company records provisions for excess and obsolete inventory based on forecasts of future demand. While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts are greater than actual demand. Property and equipment, net (in thousands) As of September 27, December 31, Computer equipment $ 10,399 $ 9,779 Furniture, fixtures and leasehold improvements 18,202 19,379 Software 30,140 29,294 Machinery and equipment 65,094 60,135 Total property and equipment, gross 123,835 118,587 Accumulated depreciation and amortization (99,884 ) (88,893 ) Total property and equipment, net $ 23,951 $ 29,694 Depreciation and amortization expense pertaining to property and equipment was $4.4 million and $13.8 million for the three and nine months ended September 27, 2015 , respectively, and $4.6 million and $13.1 million for the three and nine months ended September 28, 2014 , respectively. Intangibles, net (in thousands) Gross Accumulated Amortization Net September 27, 2015 Technology $ 61,099 $ (46,275 ) $ 14,824 Customer contracts and relationships 56,500 (21,519 ) 34,981 Other 10,545 (7,159 ) 3,386 Total intangibles, net $ 128,144 $ (74,953 ) $ 53,191 Gross Accumulated Amortization Net December 31, 2014 Technology $ 61,099 $ (39,341 ) $ 21,758 Customer contracts and relationships 56,500 (16,205 ) 40,295 Other 10,545 (6,368 ) 4,177 Total intangibles, net $ 128,144 $ (61,914 ) $ 66,230 Amortization of intangibles was $4.2 million and $13.0 million for the three and nine months ended September 27, 2015 , respectively, and $4.5 million and $13.4 million for the three and nine months ended September 28, 2014 , respectively. . Estimated amortization expense related to intangibles for each of the next five years and thereafter is as follows (in thousands): Year Ending December 31 Amount 2015 (remaining three months) $ 4,244 2016 16,921 2017 11,386 2018 7,871 2019 6,028 Thereafter 6,741 Total estimated amortization expense $ 53,191 Other non-current assets (in thousands) As of September 27, December 31, 2014 Non-current deferred income taxes $ 38,805 $ 38,696 Cost method investment 1,322 1,322 Other 7,278 8,059 Total other non-current assets $ 47,405 $ 48,077 Other accrued liabilities (in thousands) As of September 27, December 31, Sales and marketing programs $ 52,130 $ 54,582 Warranty obligation 47,928 44,888 Freight 6,550 6,827 Other 26,303 37,445 Total other accrued liabilities $ 132,911 $ 143,742 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 27, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company’s subsidiaries have had, and will continue to have material future cash flows, including revenue and expenses, which are denominated in currencies other than the Company’s functional currency. The Company and all its subsidiaries designate the U.S. dollar as the functional currency. Changes in exchange rates between the Company’s functional currency and other currencies in which the Company transacts business will cause fluctuations in cash flow expectations and cash flow realized or settled. Accordingly, the Company uses derivatives to mitigate its business exposure to foreign exchange risk. The Company enters into foreign currency forward contracts in Australian dollars, British pounds, Euros, and Japanese yen to manage the exposures to foreign exchange risk related to expected future cash flows on certain forecasted revenue, costs of revenue, operating expenses and existing assets and liabilities. The Company does not enter into derivatives transactions for trading or speculative purposes. The Company’s foreign currency forward contracts do not contain any credit-risk-related contingent features. The Company is exposed to credit losses in the event of nonperformance by the counter-parties of its forward contracts. The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one counter-party. In addition, the derivative contracts typically mature in less than six months and the Company continuously evaluates the credit standing of its counter-party financial institutions. The counter-parties to these arrangements are large, highly rated financial institutions and the Company does not consider non-performance a material risk. The Company may choose not to hedge certain foreign exchange exposures for a variety of reasons, including, but not limited to, materiality, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange rates. The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments in accordance with the authoritative guidance for derivatives and hedging. The Company records all derivatives on the balance sheet at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income ("OCI") until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments and the ineffective portions of its designated hedges are adjusted to fair value through earnings in other income (expense), net in the unaudited condensed consolidated statement of operations. The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of September 27, 2015 and December 31, 2014 are summarized as follows (in thousands): Derivative Assets Balance Sheet Location Fair Value at Balance Sheet Location Fair Value at December 31, 2014 Derivative assets not designated as hedging instruments Prepaid expenses and other current assets $ 505 Prepaid expenses and other current assets $ 2,416 Derivative assets designated as hedging instruments Prepaid expenses and other current assets 32 Prepaid expenses and other current assets — Total $ 537 $ 2,416 Derivative Liabilities Balance Sheet Location Fair Value at Balance Sheet Location Fair Value at December 31, 2014 Derivative liabilities not designated as hedging instruments Other accrued liabilities $ 641 Other accrued liabilities $ 409 Derivative liabilities designated as hedging instruments Other accrued liabilities 37 Other accrued liabilities 38 Total $ 678 $ 447 For details of the Company’s fair value measurements, see Note 11, Fair Value Measurements. Offsetting Derivative Assets and Liabilities The Company has entered into master netting arrangements which allow net settlements under certain conditions. Although netting is permitted, it is currently the Company's policy and practice to record all derivative assets and liabilities on a gross basis in the unaudited condensed consolidated balance sheets. The following tables set forth the offsetting of derivative assets as of September 27, 2015 and December 31, 2014 (in thousands): As of September 27, 2015 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 73 $ — $ 73 $ (73 ) $ — $ — Wells Fargo 464 — 464 (283 ) — 181 Total $ 537 $ — $ 537 $ (356 ) $ — $ 181 As of December 31, 2014 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 319 $ — $ 319 $ (16 ) $ — $ 303 Wells Fargo 2,097 — 2,097 (431 ) — 1,666 Total $ 2,416 $ — $ 2,416 $ (447 ) $ — $ 1,969 The following tables set forth the offsetting of derivative liabilities as of September 27, 2015 and December 31, 2014 (in thousands): As of September 27, 2015 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 372 $ — $ 372 $ (73 ) $ — $ 299 JP Morgan Chase 23 — 23 — — 23 Wells Fargo 283 — 283 (283 ) — — Total $ 678 $ — $ 678 $ (356 ) $ — $ 322 As of December 31, 2014 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 16 $ — $ 16 $ (16 ) $ — $ — Wells Fargo 431 — 431 (431 ) — — Total $ 447 $ — $ 447 $ (447 ) $ — $ — Cash flow hedges To help manage the exposure of operating margins to fluctuations in foreign currency exchange rates, the Company hedges a portion of its anticipated foreign currency revenue, costs of revenue and certain operating expenses. These hedges are designated at the inception of the hedge relationship as cash flow hedges under the authoritative guidance for derivatives and hedging. Effectiveness is tested at least quarterly both prospectively and retrospectively using regression analysis to ensure that the hedge relationship has been effective and is likely to remain effective in the future. The Company typically hedges portions of its anticipated foreign currency exposure for three to five months. The Company enters into about five forward contracts per quarter with an average size of approximately $7.0 million USD equivalent related to its cash flow hedging program. The Company expects to reclassify to earnings all of the amounts recorded in OCI associated with its cash flow hedges over the next twelve months. OCI associated with cash flow hedges of foreign currency revenue is recognized as a component of net revenue in the same period as the related revenue is recognized. OCI associated with cash flow hedges of foreign currency costs of revenue and operating expenses are recognized as a component of cost of revenue and operating expense in the same period as the related costs of revenue and operating expenses are recognized. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur within the designated hedge period or if not recognized within 60 days following the end of the hedge period. Deferred gains and losses in OCI with such derivative instruments are reclassified immediately into earnings through other income and expense. Any subsequent changes in fair value of such derivative instruments also are reflected in current earnings unless they are re-designated as hedges of other transactions. The Company did not recognize any material net gains or losses related to the loss of hedge designation as there were no discontinued cash flow hedges during the three and nine months ended September 27, 2015 and September 28, 2014 . The effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three and nine months ended September 27, 2015 and September 28, 2014 are summarized as follows (in thousands): Derivatives Designated as Hedging Instruments Three Months Ended September 27, 2015 Gain (Loss) Recognized in OCI - Effective Portion (a) Location of Gain (Loss) Reclassified from OCI into Income - Effective Portion Gain (Loss) Reclassified from OCI into Income - Effective Portion (a) Location of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Amount of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Cash flow hedges: Foreign currency forward contracts $ (416 ) Net revenue $ (552 ) Other income (expense), net $ (9 ) Foreign currency forward contracts — Cost of revenue 3 Other income (expense), net — Foreign currency forward contracts — Operating expenses 123 Other income (expense), net — Total $ (416 ) $ (426 ) $ (9 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended September 27, 2015 Gain (Loss) Location of Gain (Loss) Location of Amount of Gain (Loss) Recognized in Cash flow hedges: Foreign currency forward contracts $ (1,299 ) Net revenue $ (1,474 ) Other income (expense), net $ (43 ) Foreign currency forward contracts — Cost of revenue 7 Other income (expense), net — Foreign currency forward contracts — Operating expenses 270 Other income (expense), net — Total $ (1,299 ) $ (1,197 ) $ (43 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Three Months Ended September 28, 2014 Gain (Loss) Recognized in OCI - Effective Portion (a) Location of Gain (Loss) Reclassified from OCI into Income - Effective Portion Gain (Loss) Reclassified from OCI into Income - Effective Portion (a) Location of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Amount of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Cash flow hedges: Foreign currency forward contracts $ 401 Net revenue $ 320 Other income (expense), net $ (41 ) Foreign currency forward contracts — Cost of revenue — Other income (expense), net — Foreign currency forward contracts — Operating expenses (58 ) Other income (expense), net — Total $ 401 $ 262 $ (41 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended September 28, 2014 Gain (Loss) Location of Gain (Loss) Location of Amount of Gain (Loss) Recognized in Cash flow hedges: Foreign currency forward contracts $ (170 ) Net revenue $ (221 ) Other income (expense), net $ (107 ) Foreign currency forward contracts — Cost of revenue 8 Other income (expense), net — Foreign currency forward contracts — Operating expenses (23 ) Other income (expense), net — Total $ (170 ) $ (236 ) $ (107 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Non-designated hedges The Company enters into non-designated hedges under the authoritative guidance for derivatives and hedging to manage the exposure of non-functional currency monetary assets and liabilities held on its financial statements to fluctuations in foreign currency exchange rates, as well as to reduce volatility in other income and expense. The non-designated hedges are generally expected to offset the changes in value of its net non-functional currency asset and liability position resulting from foreign exchange rate fluctuations. Foreign currency denominated accounts receivable and payable are hedged with non-designated hedges when the related anticipated foreign revenue and expenses are recognized in the Company’s financial statements. The Company also hedges certain non-functional currency monetary assets and liabilities that may not be incorporated into the cash flow hedge program. The Company adjusts its non-designated hedges monthly and enters into about 15 non-designated derivatives per quarter. The average size of its non-designated hedges is approximately $2.0 million USD equivalent and these hedges range from one to five months in duration. The effects of the Company’s non-designated hedged included in other income (expense), net in the unaudited condensed consolidated statements of operations for the three and nine months ended September 27, 2015 and September 28, 2014 are as follows (in thousands): Derivatives Not Designated as Hedging Instruments Location of Gains (Losses) Recognized in Income on Derivative Amount of Gains (Losses) Recognized in Income Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Foreign currency forward contracts Other income (expense), net $ 1,267 $ 3,567 $ 3,278 $ 1,629 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include outstanding stock options and unvested restricted stock awards, which are reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of stock-based compensation cost for future services that the Company has not yet recognized, and the estimated tax benefit that would be recorded in additional paid-in capital upon exercise are assumed to be used to repurchase shares. Net income per share for the three and nine months ended September 27, 2015 and September 28, 2014 are as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Numerator: Net income $ 15,099 $ 20,025 $ 26,777 $ 49,141 Denominator: Weighted average common shares - basic 31,979 35,643 33,473 36,133 Potentially dilutive common share equivalent 356 607 529 673 Weighted average common shares - dilutive 32,335 36,250 34,002 36,806 Basic net income per share $ 0.47 $ 0.56 $ 0.80 $ 1.36 Diluted net income per share $ 0.47 $ 0.55 $ 0.79 $ 1.34 Anti-dilutive employee stock-based awards, excluded 2,768 2,774 $ 2,486 $ 2,608 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision for the three and nine months ended September 27, 2015 was $10.8 million , or an effective tax rate of 41.7% , and $28.1 million , or an effective tax rate of 51.2% , respectively. The income tax provision for the three and nine months ended September 28, 2014 was $8.8 million , or an effective tax rate of 30.6% , and $27.6 million , or an effective tax rate of 36.0% , respectively. During the three and nine months ended September 27, 2015 and September 28, 2014, the Company incurred losses in a jurisdiction where no tax benefit could be recorded. As a result, the forecasted losses from this jurisdiction were excluded from the determination of tax expense for the respective periods. The increase in the effective tax rate for the three and nine month period ended September 27, 2015 compared to the same period in the prior year was primarily caused by an increase in losses incurred in a jurisdiction where no tax benefit could be recorded as well as a shift in the distribution of earnings to jurisdictions with relatively higher tax rates. The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions resulting from the expiration of statutes of limitation in multiple jurisdictions in the next twelve months is approximately $0.7 million , excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. |
Commitments And Contingencies C
Commitments And Contingencies Commitments and contingencies | 9 Months Ended |
Sep. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Leases The Company leases office space, cars and equipment under operating leases, some of which are non-cancelable, with various expiration dates through December 2026 . The terms of some of the Company’s office leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. Purchase Obligations The Company has entered into various inventory-related purchase agreements with suppliers. Generally, under these agreements, 50% of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25% of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date. Orders are non-cancelable within 30 days prior to the expected shipment date. At September 27, 2015 , the Company had approximately $158 million in non-cancelable purchase commitments with suppliers. The Company establishes a loss liability for all products it does not expect to sell for which it has committed purchases from suppliers. Such losses have not been material to date. From time to time the Company’s suppliers procure unique complex components on the Company's behalf. If these components do not meet specified technical criteria or are defective, the Company should not be obligated to purchase the materials. However, disputes may arise as a result and significant resources may be spent resolving such disputes. Warranty Obligation Changes in the Company’s warranty obligation, which is included in other accrued liabilities in the unaudited condensed consolidated balance sheets, are as follows (in thousands): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Balance as of beginning of the period $ 40,967 $ 41,934 $ 44,888 $ 48,754 Provision for warranty obligation made during the period 22,625 17,175 53,862 44,630 Settlements made during the period (15,664 ) (16,357 ) (50,822 ) (50,632 ) Balance at end of period $ 47,928 $ 42,752 $ 47,928 $ 42,752 Guarantees and Indemnifications The Company, as permitted under Delaware law and in accordance with its Bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum amount of potential future indemnification is unlimited; however, the Company has a Director and Officer Insurance Policy that enables it to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the fair value of each indemnification agreement is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of September 27, 2015 . In its sales agreements, the Company typically agrees to indemnify its direct customers, distributors and resellers for any expenses or liability resulting from claimed infringements by the Company's products of patents, trademarks or copyrights of third parties, subject to customary carve outs. The terms of these indemnification agreements are generally perpetual any time after execution date of the respective agreement. The maximum amount of potential future infringement indemnification is generally unlimited. The Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of September 27, 2015 . Employment Agreements The Company has signed various employment agreements with key executives pursuant to which, if their employment is terminated without cause, such employees are entitled to receive their base salary (and commission or bonus, as applicable) for 52 weeks (for the Chief Executive Officer), 39 weeks (for the Senior Vice President of Worldwide Operations and Support) and up to 26 weeks (for other key executives). Such employees will also continue to have stock options vest for up to a one -year period following such termination without cause. If a termination without cause or resignation for good reason occurs within one year of a change in control, such employees are entitled to full acceleration (for the Chief Executive Officer) and up to two years acceleration (for other key executives) of any unvested portion of his or her equity awards. The Company has no liabilities recorded for these agreements as of September 27, 2015 . Litigation and Other Legal Matters The Company is involved in disputes, litigation, and other legal actions, including, but not limited to, the matters described below. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. In such cases, the Company accrues for the amount, or if a range, the Company accrues the low end of the range, only if there is not a better estimate than any other amount within the range, as a component of legal expense within litigation reserves, net. The Company monitors developments in these legal matters that could affect the estimate the Company had previously accrued. In relation to such matters, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position within the next twelve months , or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, which could result in the need to adjust the liability and record additional expenses. Ericsson v. NETGEAR, Inc. On September 14, 2010, Ericsson Inc. and Telefonaktiebolaget LM Ericsson (collectively “Ericsson”) filed a patent infringement lawsuit against the Company and defendants D-Link Corporation, D-Link Systems, Inc., Acer, Inc., Acer America Corporation, and Gateway, Inc. in the U.S. District Court, Eastern District of Texas alleging that the defendants infringe certain Ericsson patents. The Company has been accused of infringing eight U.S. patents: 5,790,516 (the “'516 Patent”); 6,330,435 (the “'435 Patent”); 6,424,625 (the “'625 Patent”); 6,519,223 (the “'223 Patent”); 6,772,215 (the “'215 Patent”); 5,987,019 (the “'019 Patent”); 6,466,568 (the “'568 Patent”); and 5,771,468 (the “'468 Patent"). Ericsson generally alleges that the Company and the other defendants have infringed and continue to infringe the Ericsson patents through the defendants' IEEE 802.11-compliant products. In addition, Ericsson alleged that the Company infringed the claimed methods and apparatuses of the '468 Patent through the Company's PCMCIA routers. The Company filed its answer to the Ericsson complaint on December 17, 2010 where it asserted the affirmative defenses of noninfringement and invalidity of the asserted patents. On March 1, 2011, the defendants filed a motion to transfer venue to the District Court for the Northern District of California and their memorandum of law in support thereof. On March 21, 2011, Ericsson filed its opposition to the motion, and on April 1, 2011, defendants filed their reply to Ericsson's opposition to the motion to transfer. On June 8, 2011, Ericsson filed an amended complaint that added Dell, Toshiba and Belkin as defendants. At the status conference held on Jun 9, 2011, the Court set a Markman (claim construction) hearing for June 28, 2012 and trial for June 3, 2013. On June 14, 2011, Ericsson submitted its infringement contentions against the Company. On September 29, 2011, the Court denied the defendants' motion to transfer venue to the Northern District of California. In advance of the Markman hearing, the parties on March 9, 2012 exchanged proposed constructions of claim terms and on April 9, 2012 filed the Joint Claim Construction Statement with the District Court. On May 8, 2012, Ericsson submitted its opening Markman brief and on June 1, 2012 the defendants submitted their responsive Markman brief. Ericsson's Reply Markman brief was submitted June 15, 2012, and on June 28, 2012 the Markman hearing was held in the Eastern District of Texas. On June 21, 2012, Ericsson dismissed the '468 Patent (“Multi-purpose base station”) with prejudice and gave the Company a covenant not to sue as to products in the marketplace now or in the past. On June 22, 2012, Intel filed its complaint in Intervention, meaning that Intel became an official defendant in the Ericsson case. The parties thereafter completed fact discovery and exchanged expert reports. During the exchange of the expert reports, Ericsson dropped the '516 Patent (the OFDM “pulse shaping” patent). In addition, Ericsson dropped the '223 Patent (packet discard patent) against all the defendants' products, except for those products that use Intel chips. Thus, Ericsson has now dropped the '468 Patent (wireless base station), the '516 Patent (OFDM pulse shaping), and the '223 Patent (packet discard patent) for all non-Intel products. The five remaining patents were all only asserted against 802.11-compliant products. At a Court ordered mediation in Dallas on January 15, 2013, the parties did not come to an agreement to settle the litigation. On March 8, 2013, the parties received the Markman Order in response to the claim construction briefing and claim construction hearing. A jury trial in the Ericsson case occurred in the Eastern District of Texas from June 3 through June 13, 2013. After hearing the evidence, the jury found no infringement of the '435 and '223 Patents, and the jury found infringement of claim 1 of the '625 Patent, claims 1 and 5 of the '568 Patent, and claims 1 and 2 of the '215 Patent. The jury also found that there was no willful infringement by any defendant. Additionally, the jury found no invalidity of the asserted claims of the '435 and '625 Patents. The jury assessed the following damages against the defendants: D-Link: $435,000 ; NETGEAR: $3,555,000 ; Acer/Gateway: $1,170,000 ; Dell: $1,920,000 ; Toshiba: $2,445,000 ; Belkin: $600,000 . The damages awards equate to 15 cents per unit for each accused 802.11 device sold by each defendant. Thus, unless the defendants' various appeals are successful, the Company will likely have a 15 cent per unit obligation on its 802.11 devices until 2016 (when one infringed patent in suit expires), 10 cent per unit obligation from 2016 through 2018 (when a second infringed patent in suit expires), and a 5 cent per unit obligation from 2018 through 2020 (when the third and last infringed patent in suit expires). The Company and other defendants submitted various post-trial motions and briefs to the Court for its consideration, including motions and briefs for judgment as a matter of law in favor of defendants on non-infringement and invalidity of the patents in suit and for a reduction in damages, and the defendants have also moved for a new trial. These motions were argued before the Court on July 16, 2013. On August 6, 2013, the Court issued its orders on the various JMOL's (“Judgment as a Matter of Law”) and other post-trial motions. The Court denied all the defendants’ motions and set the reasonable and nondiscriminatory (RAND) royalty rate for the infringed patents equivalent to the jury verdict of 15 cents per unit. After negotiations, Ericsson and the Company agreed to the following as collateral while the appeal of the verdict, Court’s rulings, and the RAND royalty rate are pending. Ericsson will forego collecting the $3,555,000 verdict plus various fees (Prejudgment interest of $224,141 ; Post-judgment interest of $336 per day; Costs of $41,667 ) assigned to the Company pending appeal, so long as a Company representative declares and provides Ericsson with adequate quarterly assurances that the judgment can still be paid. For the ongoing royalties of 15 cents per 802.11n or 802.11ac device sold by the company that the jury and Court awarded, the Company will place the ongoing royalty amount into the Court’s registry (escrow account) and will give Ericsson a corresponding royalty report until the Company’s appeals of the jury verdict, the Court’s orders, and the RAND royalty rate are exhausted. On December 16, 2013, the defendants submitted their appeal brief to the Federal Circuit. Ericsson filed its response brief on February 20, 2014, and the defendants filed their reply brief before on March 24, 2014. The oral arguments before the Federal Circuit took place on June 5, 2014. On December 4, 2014, the Federal Circuit issued its opinion and order in the Company’s Ericsson appeal. The Federal Circuit vacated the entirety of the $3.6 million jury verdict against the Company and the ongoing 15 cent per unit royalty verdict, and also vacated the entirety of the verdict against the other defendants and their ongoing royalties, finding that the District Court hadn’t properly instructed the jury on royalty rates and Ericsson’s licensing promises. The Federal Circuit held that the lower court had failed to adequately instruct the jury about Ericsson’s actual commitments to license the infringed patents on reasonable and nondiscriminatory (“RAND”) terms. Further, the Federal Circuit stated that the lower court had neglected to inform the jury that a royalty for a patented technology must be removed from the value of the entire standard, and that a RAND royalty rate should be based on the invention’s value, rather than any added value from standardization. The jury’s damages awards were therefore completely vacated, and the case was remanded for further proceedings. As of the end of the fourth quarter of 2014, based on the Federal Circuit’s opinion and order, the Company made adjustments to decrease the accrual related to this case. While the Federal Circuit found the district court had inadequate jury instructions, it held that there was enough evidence for the jury to find infringement of two claims of U.S. Patent Number 6,466,568 and two claims of U.S. Patent Number 6,772,215, but reversed the lower court’s decision not to grant a noninfringement judgment as a matter of law regarding the third patent, U.S. Patent Number 6,424,625, finding that no reasonable jury could find that the '625 Patent was infringed by the defendants. Neither Ericsson nor the defendants appealed the Federal Circuit’s decision, and the Federal Circuit issued its mandate and sent the case back to the U.S. District Court in the Eastern District of Texas for a new damages trial. No proceedings have yet taken place in the U.S. District Court in the Eastern District of Texas following the Federal Circuit’s mandate. In September of 2013, Broadcom filed petitions in the USPTO at the Patent Trial and Appeal Board (PTAB) seeking inter partes review (“IPR”) of Ericsson’s three patents that the jury found were infringed by the Company and other defendants. On March 6, 2015, the PTAB invalidated all the claims of these three patents that were asserted against the Company and other defendants at trial -- claim 1 of the '625 Patent, claims 1 and 5 of the '568 Patent, and claims 1 and 2 of the '215 Patent -- ruling these claims were anticipated or obvious in light of prior art. The PTAB also rejected two motions to amend by Ericsson, which sought to substitute certain proposed claims in the '625 and '568 patents, should they be found unpatentable by the PTAB. This PTAB decision comes on top of the Federal Circuit decision (a) vacating the jury verdict after finding that the district court had not properly instructed the jury on royalty rates and Ericsson’s licensing promises, and (b) ruling that no reasonable jury could have found the ‘625 Patent infringed. Ericsson appealed the PTAB decision to the Federal Circuit and also requested that the PTAB reconsider its decision, but the PTAB denied Ericsson’s request for reconsideration. While Ericsson appeals the PTAB decision the present status of the case is that the Company does not infringe on any valid Ericsson patent, and accordingly the Company reversed the accruals related to this case in the first fiscal quarter of 2015. Agenzia Entrate Provincial Revenue Office 1 of Milan v. NETGEAR International, Inc. In November 2012, the Italian Tax Police began a comprehensive tax audit of NETGEAR International, Inc.’s Italian Branch. The scope of the audit initially was from 2004 through 2011 and was subsequently expanded to include 2012. The tax audit encompasses Corporate Income Tax (IRES), Regional Business Tax (IRAP) and Value-Added Tax (VAT). In December 2013, December 2014, and August 2015, an assessment was issued by Inland Revenue Agency, Provincial Head Office No. 1 of Milan-Auditing Department (Milan Tax Office) for the 2004 tax year, the 2005 through 2007 tax years, and the 2008 through 2010 tax years, respectively. All other years remain under audit. In May 2014, the Company filed with the Provincial Tax Court of Milan (Tax Court) a Request for Hearing in Open Court and Request for Suspension of the Tax Assessment for the 2004 year. The hearing was held and decision was issued on November 7, 2014. The Tax Court found in favor of the Company and nullified the assessment by the Inland Revenue Agency for 2004. The Inland Revenue Agency appealed the decision of the Tax Court on June 12, 2015. The Company filed its counter appeal with respect to the 2004 year during September 2015. With respect to 2005 through 2007, the Company filed its briefs with the Tax Court in mid-February. In June, 2015, the Company filed with the Provincial Tax Court of Milan (Tax Court) a Request for Hearing in Open Court and Request for Suspension of the Tax Assessment for the 2005 through 2007 tax years. The hearing was held and the Request for Suspension of payment was granted. With respect to 2008 through 2010, the Company filed its briefs with the Tax Court in October 2015. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Via Vadis v. NETGEAR, Inc. On August 22, 2014, the Company was sued by Via Vadis, LLC and AC Technologies, S.A. (“Via Vadis”), in the Western District of Texas. The complaint alleges that the Company’s ReadyNAS and Stora products “with built-in BitTorrent software" allegedly infringe three related patents of Via Vadis (U.S. Patent Nos. 7,904,680, RE40,521, and 8,656,125). Via Vadis filed similar complaints against Belkin, Buffalo, Blizzard, D-Link, and Amazon. By referring to “built-in BitTorrent software,” the Company believes that the complaint is referring to the BitTorrent Sync application, which was released by BitTorrent Inc. in spring of 2014. At a high-level, the application allows file synchronization across multiple devices by storing the underlying files on multiple local devices, rather than on a centralized server. The Company’s ReadyNAS products do not include BitTorrent software when sold. The BitTorrent application is provided as one of a multitude of potential download options, but the software itself is not included on the Company’s devices when shipped. Therefore, the only viable allegation at this point is an indirect infringement allegation. On November 10, 2014, the Company answered the complaint denying that it infringes the patents in suit and also asserting the affirmative defenses that the patents in suit are invalid and barred by the equitable doctrines of laches, waiver, and/or estoppel. On February 5, 2015, the Court set the claim construction hearing for December 4, 2015 and allowed discovery for claim construction purposes to commence. On February 6, 2015, the Company filed its motion to transfer venue from the Western District of Texas to the Northern District of California with the Court; on February 13, 2015, Via Vadis filed its opposition to the Company’s motion to transfer; and on February 20, 2015, the Company filed its reply brief on its motion to transfer. In early April 2015, the Company received the plaintiff’s infringement contentions, and on June 12, 2015, the defendants served invalidity contentions. Discovery in the case was stayed until the Court issues its claim construction order. On July 30, 2015 the Court granted the Company’s motion to transfer venue to the Northern District of California. In addition, the Company recently learned that Amazon and Blizzard filed petitions for the inter partes reviews (“IPRs”) for the patents in suit. On October 15, 2015, the Company and Via Vadis came to an agreement in principle to petition the California Court to stay the case pending resolution of the IPR proceedings filed by Amazon and Blizzard. No Scheduling Order has been issued by the California Court. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Wetro Lan v. NETGEAR, Inc. On January 30, 2015, the Company was sued by a non-practicing entity called Wetro Lan LLC (“Wetro Lan”) in United States District Court, Eastern District of Texas, Marshall Division. Wetro Lan alleges direct infringement by the Company of United States Patent No. 6,795,918 (the “'918 Patent”) entitled “Service Level Computer Security” based on the Company’s manufacture and selling of the “NETGEAR WGR614v9 Wireless Router and similarly situated NETGEAR, Inc. Wireless Routers.” On April 13, 2015 the Company answered the complaint. The Company denied that it infringed the patent and asserted several affirmative defenses (counterclaims), including noninfringement, invalidity, limitation of damages, laches, waiver, estoppel, and other equitable defenses, and on May 4, 2015 Wetro Lan answered the Company’s counterclaims. On July 16, 2015, the Company filed with the Court a motion to transfer venue from the Eastern District of Texas to the Northern District of California. On August 17, 2015, Wetro Lan filed with the Court its opposition to the Company’s motion to transfer venue, and on August 24, 2015 the Company filed its Reply in Support of Transfer as filed. The Court has not yet ruled on the Company’s transfer motion. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Frequency Systems LLC v NETGEAR, Inc. On May 8, 2015, the Company was sued by a non-practicing entity named Frequency Systems LLC (“Frequency Systems”) in the United States District Court, Eastern District of Texas. Frequency Systems alleges direct or indirect infringement by the Company of a single patent, U.S. Pat. No. 8,417,205 (the “'205 Patent”), entitled “Antenna selection scheme for multiple antennae.” Frequency Systems alleges infringement generically by the Company’s “wireless routers and access points product families” without specifying any models. Frequency Systems also simultaneously sued ADTRAN, TCL Communications, Amped Wireless, ASUS, Belkin, Buffalo, Cisco, D-Link, EnGenius Technologies, Extreme Networks, HP, HTC, Huawei, ATEN Technology, IOGear, Kyocera, LG, Linksys, Motorola Mobility, Novatel Wireless, Sharp, TP-Link, TRENDnet, Western Digital, ZTE, and ZyXEL. The Company answered the complaint on July 23, 2015 asserting various defenses, including noninfrigement and invalidity of the patent in suit. Recently, it appears that Frequency Systems granted RPX Corporation a license. This is significant because the Company’s products that use WiFi chipsets of licensed companies (i.e. companies that are RPX members) likely will be licensed. The licensed RPX members include Broadcom and QualComm-Atheros. On September 24, 2015, Frequency Systems served preliminary infringement contentions. Frequency Systems alleges that the Company infringes claims 1, 2 and 4 of the '205 Patent by the sale of products that are compliant with the 802.11n wireless standard, and identifies the following Company models as exemplars: R8000, R7500, R7000, R6400, R6300, R6250, AC1450, R6220, R6200, R6100, R6050, WNDR4700, WNDR4720, WNDR4500, WNDR4300, WNDR3700, WNDR3400, WNR2500, JNR3210, WNR2020, R7900, R6700, D7800, D7000, D6400, D6200, DGND4000, DGND3700, C7000, C6300, C3700, MBR1515, MBR1515A, MVBR1517, MVBR1210C, WNDAP660, EX7000, EX6200, EX6150, EX6100, X3920, EX3700, WN2500RP, WN3000RP, EX2700, A6210, LG2200D, LG6100D, WNDAP620, WND930, WNDAP360, WNDAP350, WN203, WN802T, and D2200D. The Court held its initial scheduling conference on September 30, 2015. The Company’s invalidity contentions are due on November 25, 2015. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Verifire Network Solutions v NETGEAR, Inc. On June 3, 2015, the Company was sued by a non-practicing entity named Verifire Network Solutions, LLC. (“Verifire”) in the United States District Court, Eastern District of Texas. Verifire alleges direct infringement by the Company of a single patent, US Patent No. 8,463,727 (the “'727 Patent”), entitled “Communication management system and communication management method,” and the complaint targets Netgear’s ProSAFE® business-class VPN Firewall and ProSECURE® UTM Firewall product families. Verifire recently has sued several other companies in the same Court on the same patent, including Fortinet, WatchGuard, Check Point, and Hewlett Packard. The Company received an extension to answer the complaint and filed its Answer to the on August 26, 2015. On September 22, 2015, Verifire produced its preliminary infringement contentions. Verifire asserted that claims 1 and 3 of the '727 Patent cover all network security equipment, including firewalls such as the ProSAFE and ProSECURE lines manufactured by the Company. Recently, many defendants settled, as RPX Corporation appears to have signed a settlement agreement with Verifire to settle out RPX members. The remaining defendants are: ADTRAN, Panda Distribution, Inc., and the Company. The Court held its initial scheduling conference on September 30, 2015. The Company’s invalidity contentions are due on November 25, 2015. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Chrimar Systems, Inc. v NETGEAR, Inc. On July 1, 2015, the Company was sued by a non-practicing entity named Chrimar Systems, Inc., doing business as CMS Technologies and Chrimar Holding Company, LLC (collectively, “CMS”), in the Eastern District of Texas for allegedly infringing four patents-U.S. Patent Nos. 8,155,012 (the “'012 Patent”), entitled “System and method for adapting a piece of terminal equipment”; 8,942,107 (the “'107 Patent”), entitled “Piece of ethernet terminal equipment”; 8,902,760 (the “'760 Patent”), entitled “Network system and optional tethers”; and 9,019,838 (the “'838 Patent”), entitled “Central piece of network equipment” (collectively “patents-in-suit”). The patents-in-suit relate to using or embedding an electrical DC current or signal into an existing Ethernet communication link in order to transmit additional data about the devices on the communication link, and the specifications for the patents are identical. It appears that Chrimar has approximately 40 active cases in the Eastern District of Texas, as well as some cases in the Northern District of California on the patents-in-suit and the parent patent to the patents-in-suit. The Company received an extension until September 15, 2015 to answer the complaint. The Company answered the complaint with a Motion to Dismiss Chrimar’s indirect infringement claims. Chrimar subsequently filed a response to the Company’s motion to dismiss and Chrimar’s First Amended Complaint. Chrimar responded to the Motion to Dismiss by dropping its induced infringement claims and providing supplemental allegations in support of its contributory infringement claims with respect to the '760 Patent. For the '012, '107 and '838 Patents, Chrimar now only alleges direct infringement. Chrimar originally asserted direct and indirect infringement for all four patents-in-suit. Subsequently, on October 5, 2015, the Company filed a Motion to Dismiss the Direct Infringement Claims Relating to the '760 Patent. Chrimar filed its response to this motion to dismiss on October 15, 2015, and the Company filed its Reply on October 26, 2015. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. IP Indemnification Claims In its sales agreements, the Company typically agrees to indemnify its direct customers, distributors and resellers (the “Indemnified Parties”) for any expenses or liability resulting from claimed infringements by the Company's products of patents, trademarks or copyrights of third parties that are asserted against the Indemnified Parties, subject to customary carve outs. The terms of these indemnification agreements are generally perpetual after execution of the agreement. The maximum amount of potential future indemnification is generally unlimited. From time to time, the Company receives requests for indemnity and may choose to assume the defense of such litigation asserted against the Indemnified Parties. Environmental Regulation The Company is required to comply and is currently in compliance with the European Union ("EU") and other Directives on the Restrictions of the use of Certain Hazardous Substances in Electrical and Electronic Equipment (“RoHS”), Waste Electrical and Electronic Equipment ("WEEE") requirements, Energy Using Product (“EuP”) requirements, the REACH Regulation, Packaging Directive and the Battery Directive. The Company is subject to various federal, state, local, and foreign environmental laws and regulations, including those governing the use, discharge, and disposal of hazardous substances in the ordinary course of our manufacturing process. The Company believes that its current manufacturing and other operations comply in all material respects with applicable environmental laws and regulations; however, it is possible that future environmental legislation may be enacted or current environmental legislation may be interpreted to create an environmental liability with respect to its facilities, operations, or products. See further discussion of the business risks associated with environmental legislation under the risk titled, "We are subject to, and must remain in compliance with, numerous laws and governmental regulations concerning the manufacturing, use, distribution and sale of our products, as well as any such future laws and regulations. Some of our customers also require that we comply with their own unique requirements relating to these matters. Any failure to comply with such laws, regulations and requirements, and any associated unanticipated costs, may adversely affect our business, financial condition and results of operations." within Item 1A Risk Factors of this Form 10-Q. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 27, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock Repurchase Program From time to time, the Company’s Board of Directors has authorized programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. Under the authorizations, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the price of the Company’s common stock. Repurchases made by the Company pursuant to Board-authorized programs during the nine months ended September 27, 2015 and September 28, 2014 are discussed below. As of September 27, 2015, 2.6 million shares remained authorized for repurchase under the repurchase program approved by the Board on July 21, 2015. There were no remaining shares authorized under any previously approved programs. The Company repurchased, reported based on trade date, 3.4 million shares of common stock at a cost of $105.2 million during the nine months ended September 27, 2015 . The Company repurchased, reported based on trade date, 2.1 million shares of common stock at a cost of $68.6 million under the repurchase authorization during the nine months ended September 28, 2014 . The Company repurchased, as reported based on trade date, approximately 77,000 shares of common stock at a cost of $2.4 million under a repurchase program to help administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving restricted stock units ("RSUs") during the nine months ended September 27, 2015 . Similarly, during the nine months ended September 28, 2014 , the Company repurchased approximately 50,000 shares of common stock at a cost of $1.6 million under the same program to help facilitate tax withholding for RSUs. These shares were retired upon repurchase. The purchase price for the shares of the Company’s stock repurchased is reflected as a reduction to stockholders’ equity. The Company’s policy related to repurchases of its common stock is to charge the excess of cost over par value to retained earnings. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Accumulated Other Comprehensive Income, Net The following table sets forth the changes in accumulated other comprehensive income ("AOCI") by component, net of tax, for the nine months ended September 27, 2015 (in thousands): Gains and losses on available for sale securities Gains and losses on derivatives Total Beginning balance as of December 31, 2014 $ (5 ) $ 43 $ 38 Other comprehensive income (loss) before reclassifications 21 (1,299 ) (1,278 ) Amounts reclassified from accumulated other comprehensive income — 1,197 1,197 Net current period other comprehensive income (loss) 21 (102 ) (81 ) Ending balance as of September 27, 2015 $ 16 $ (59 ) $ (43 ) The following tables provide details about significant amounts reclassified out of each component of AOCI for the three and nine months ended September 27, 2015 and September 28, 2014 (in thousands): Details about Accumulated Other Comprehensive Income Components Three Months Ended September 27, 2015 Nine Months Ended September 27, 2015 Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Gains and losses on cash flow hedge: Foreign currency forward contracts $ (552 ) Net revenue $ (1,474 ) Net revenue Foreign currency forward contracts 3 Cost of revenue 7 Cost of revenue Foreign currency forward contracts 123 Operating expenses 270 Operating expenses (426 ) Total before tax (1,197 ) Total before tax — Tax expense (1) — Tax expense (1) $ (426 ) Total, net of tax $ (1,197 ) Total, net of tax (1) Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax. Details about Accumulated Other Comprehensive Income Components Three Months Ended September 28, 2014 Nine Months Ended September 28, 2014 Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Gains and losses on cash flow hedge: Foreign currency forward contracts $ 320 Net revenue $ (221 ) Net revenue Foreign currency forward contracts — Cost of revenue 8 Cost of revenue Foreign currency forward contracts (58 ) Operating expenses (23 ) Operating expenses 262 Total before tax (236 ) Total before tax — Tax expense (1) — Tax expense (1) $ 262 Total, net of tax $ (236 ) Total, net of tax (1) Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 27, 2015 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company grants options and RSUs from the Amended and Restated 2006 Long-Term Incentive Plan, under which awards may be granted to all employees. Award vesting periods for this plan is generally four years . As of September 27, 2015 , approximately 1.5 million shares from this plan were reserved for future grants. Additionally, the Company sponsors an Employee Stock Purchase Plan (the “ESPP”), pursuant to which eligible employees may contribute up to 10% of base compensation, subject to certain income limits, to purchase shares of the Company’s common stock. Employees may purchase stock semi-annually at a price equal to 85% of the fair market value on the purchase date. As of September 27, 2015 , approximately 0.1 million shares were reserved under the ESPP. Option Activity Stock option activity during the nine months ended September 27, 2015 was as follows: Number of shares Weighted Average Exercise Price Per Share (in thousands) (in dollars) Outstanding at December 31, 2014 3,939 $ 30.58 Granted 296 31.34 Exercised (262 ) 23.44 Cancelled (128 ) 33.23 Expired (246 ) 34.82 Outstanding at September 27, 2015 3,599 $ 30.78 RSU Activity RSU activity during the nine months ended September 27, 2015 was as follows: Number of shares Weighted Average Grant Date Fair Value Per Share (in thousands) (in dollars) Outstanding at December 31, 2014 858 $ 30.68 RSUs granted 468 32.13 RSUs vested (259 ) 31.04 RSUs cancelled (108 ) 31.44 Outstanding at September 27, 2015 959 $ 31.59 Valuation and Expense Information The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton option valuation model that uses the assumptions noted in the following table. The estimated expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk free interest rate is based on the implied yield currently available on U.S. Treasury securities with a remaining term commensurate with the estimated expected term. Expected volatility is based on historical volatility over the most recent period commensurate with the estimated expected term. The table below sets forth the weighted average assumptions used to estimate the fair value of option grants during the three and nine months ended September 27, 2015 and September 28, 2014 . Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Expected life (in years) N/A N/A 4.5 4.5 Risk-free interest rate N/A N/A 1.44% 1.44% Expected volatility N/A N/A 39.3% 42.6% Dividend yield N/A N/A — — The following table sets forth the stock-based compensation expense resulting from stock options, RSUs and the ESPP included in the Company’s unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Cost of revenue $ 358 $ 573 $ 1,190 $ 1,533 Research and development 877 1,255 2,495 3,878 Sales and marketing 1,173 1,409 3,838 4,759 General and administrative 1,703 1,925 4,994 5,056 Total stock-based compensation $ 4,111 $ 5,162 $ 12,517 $ 15,226 As of September 27, 2015 , $7.9 million of unrecognized compensation cost related to stock options, adjusted for estimated forfeitures, is expected to be recognized over a weighted-average period of 2.53 years. Additionally, $21.0 million of unrecognized compensation cost related to unvested RSUs, adjusted for estimated forfeitures, is expected to be recognized over a weighted-average period of 2.66 years. |
Segment Information and Operati
Segment Information and Operations By Geographic Area | 9 Months Ended |
Sep. 27, 2015 | |
Segment Reporting [Abstract] | |
Segment Information and Operations By Geographic Area | Segment Information and Operations by Geographic Area Operating segments are components of an enterprise about which separate financial information is available and is regularly evaluated by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company operates in three specific business units: retail, commercial, and service provider. The retail business unit consists of high performance, dependable and easy-to-use home networking, home security automation and storage products. The commercial business unit consists of business networking, storage and security solutions that bring enterprise class functionality down to the small and medium-sized business at an affordable price. The service provider business unit consists of made-to-order and retail proven, whole home networking hardware and software solutions as well as 4G LTE hotspots sold to service providers for sale to their subscribers. The Company believes this structure enables it to better focus its efforts on the Company's core customer segments and allows it to be more nimble and opportunistic as a company overall. The Company's CEO began temporarily serving as interim general manager of the retail business unit in March 2014 and as interim general manager of the service provider business unit in February 2015, due to the previous general managers' departures from the Company. As of September 27, 2015 , the CEO continued to serve as interim general manager of both business units and will do so until replacements for the positions are appointed. The results of the reportable segments are derived directly from the Company’s management reporting system. The results are based on the Company’s method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the United States. Management measures the performance of each segment based on several metrics, including contribution income. Segment contribution income includes all product line segment revenues less the related cost of sales, research and development and sales and marketing costs. Contribution income is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Certain operating expenses are not allocated to segments because they are separately managed at the corporate level. These unallocated indirect costs include corporate costs, such as corporate research and development, corporate marketing expense and general and administrative costs, amortization of intangibles, stock-based compensation expense, restructuring and other charges, acquisition-related expense, losses on inventory commitments due to restructuring, litigation reserves, net, and interest and other income (expense), net. The Company does not evaluate operating segments using discrete asset information. Financial information for each reportable segment and a reconciliation of segment contribution income to income before income taxes is as follows (in thousands, except percentage data): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Net revenue: Retail $ 164,081 $ 131,341 $ 416,847 $ 360,236 Commercial 65,187 71,974 200,935 226,284 Service provider 112,625 150,023 322,050 453,813 Total net revenue 341,893 353,338 939,832 1,040,333 Contribution income: Retail $ 21,149 $ 21,813 $ 53,715 $ 51,222 Retail contribution margin 12.9 % 16.6 % 12.9 % 14.2 % Commercial 13,700 15,112 42,507 51,781 Commercial contribution margin 21.0 % 21.0 % 21.2 % 22.9 % Service Provider 14,819 14,164 27,472 42,918 Service Provider contribution margin 13.2 % 9.4 % 8.5 % 9.5 % Total segment contribution income 49,668 51,089 123,694 145,921 Corporate and unallocated costs (14,363 ) (13,544 ) (39,559 ) (40,428 ) Amortization of intangibles (1) (4,165 ) (4,396 ) (12,804 ) (13,177 ) Stock-based compensation expense (4,111 ) (5,162 ) (12,517 ) (15,226 ) Restructuring and other charges (1,016 ) (1,360 ) (6,384 ) (2,190 ) Acquisition-related expense — — — (8 ) Losses on inventory commitments due to restructuring — — (407 ) — Litigation reserves, net — (69 ) 2,690 (254 ) Interest income 65 68 184 174 Other income (expense), net (199 ) 2,246 (67 ) 1,911 Income before income taxes $ 25,879 $ 28,872 $ 54,830 $ 76,723 ________________________________ (1) Amount excludes amortization expense related to patents included in cost of revenue. The Company conducts business across three geographic regions: Americas, Europe, Middle-East and Africa (“EMEA”) and Asia Pacific ("APAC"). Net revenue by geography comprises gross revenue less such items as end-user customer rebates and other sales incentives deemed to be a reduction of net revenue per the authoritative guidance for revenue recognition, sales returns and price protection. For reporting purposes revenue is attributed to each geographic region based on the location of the customer. The following table shows net revenue by geography for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, United States (U.S.) $ 213,913 $ 188,569 $ 552,787 $ 561,067 Americas (excluding U.S.) 5,823 5,335 13,194 15,150 United Kingdom (U.K.) 27,850 38,933 80,965 122,707 EMEA (excluding U.K.) 49,875 69,488 153,862 192,943 APAC $ 44,432 $ 51,013 $ 139,024 $ 148,466 Total net revenue $ 341,893 $ 353,338 $ 939,832 $ 1,040,333 Property and equipment, net, by geographic location are as follows (in thousands): As of September 27, December 31, United States $ 10,200 $ 12,453 Canada 3,982 4,375 EMEA 506 657 China 7,723 10,786 APAC (excluding China) 1,540 1,423 $ 23,951 $ 29,694 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value Measurements (in thousands) The following tables summarize assets and liabilities measured at fair value on a recurring basis as of September 27, 2015 : As of September 27, 2015 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents—money-market funds $ 45,904 $ 45,904 $ — $ — Available-for-sale securities—U.S. treasuries (1) 60,093 60,093 — — Available-for-sale securities—certificates of deposit (1) 269 269 — — Trading securities—mutual funds (1) 1,057 1,057 — — Foreign currency forward contracts (2) 537 — 537 — Total assets measured at fair value $ 107,860 $ 107,323 $ 537 $ — (1) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. As of September 27, 2015 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Foreign currency forward contracts (3) $ 678 $ — $ 678 $ — Total liabilities measured at fair value $ 678 $ — $ 678 $ — (3) Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 : As of December 31, 2014 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents—money-market funds $ 4,408 $ 4,408 $ — $ — Available-for-sale securities—U.S. treasuries (1) 114,935 114,935 — — Available-for-sale securities—certificates of deposit (1) 158 158 — — Trading securities—mutual funds (1) 802 802 — — Foreign currency forward contracts (2) 2,416 — 2,416 — Total assets measured at fair value $ 122,719 $ 120,303 $ 2,416 $ — (1) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. As of December 31, 2014 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Foreign currency forward contracts (3) $ 447 $ — $ 447 $ — Total liabilities measured at fair value $ 447 $ — $ 447 $ — (3) Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. The Company’s investments in cash equivalents and available-for-sale securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A-/A3 or higher. The Company’s foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that take into account the contract terms as well as currency rates and counterparty credit rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. Additionally, the Company includes an adjustment for non-performance risk in the recognized measure of fair value of derivative instruments. At September 27, 2015 and December 31, 2014 , the adjustment for non-performance risk did not have a material impact on the fair value of the Company’s foreign currency forward contracts. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities. |
Shipping and Handling Fees and
Shipping and Handling Fees and Costs (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Shipping And Handling Fees And Costs [Abstract] | |
Shipping and Handling Fees and Costs [Text Block] | Shipping and Handling Fees and Costs The Company includes shipping and handling fees billed to customers in net revenue. Shipping and handling costs associated with inbound freight are included in cost of revenue and ending inventory. Shipping and handling costs associated with outbound freight are included in sales and marketing expenses and totaled $2.3 million and $7.9 million for the three and nine months ended September 27, 2015 , respectively, and $2.7 million and $7.7 million for the three and nine months ended September 28, 2014 , respectively. |
Restructuring and Other Charges
Restructuring and Other Charges (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring and Other Charges The Company incurred restructuring and other charges of $1.0 million and $6.4 million during the three and nine months ended September 27, 2015 , respectively. Restructuring and other charges recognized in the nine months ended September 27, 2015 are primarily related to contract and employee termination charges, as well as other activities attributable to the restructuring actions announced in February 2015. Restructuring and other charges incurred in the nine months ended September 28, 2014 were primarily attributable to charges recognized associated with the early termination of a lease agreement in Canada and one-time separation costs, primarily relating to the departure of the general manager of the retail business unit in the first quarter of 2014. Accrued restructuring and other charges are classified within other accrued liabilities in the unaudited condensed consolidated balance sheets. Amounts attributable to employee termination and other charges are expected to be paid out by the end of the first fiscal quarter of 2016. Amounts attributable to lease contract termination charges will be paid over the remaining lease term until January 2022. The following table provides a summary of the activity related to accrued restructuring and other charges for the nine months ended September 27, 2015 (in thousands): Accrued Restructuring and Other Charges at December 31, 2014 Additions (a) Cash Payments Accrued Restructuring and Other Charges at September 27, 2015 Restructuring Employee termination charges $ 316 $ 4,689 $ (4,610 ) $ 395 Lease contract termination and other charges — 1,243 $ (592 ) 651 Total Restructuring and other charges $ 316 $ 5,932 $ (5,202 ) $ 1,046 (a) Total restructuring and other charges recognized in the Company's unaudited condensed consolidated statement of operations for the nine months ended September 27, 2015 includes non-cash charges and adjustments, net of $0.5 million . These amounts have been excluded from the table above. In the third quarter of 2015, the Company completed the steps necessary to reduce the cost structure of the service provider business unit and supporting functions to match the reduced revenue outlook and to concentrate resources on LTE and long-term and profitable accounts. Management does not expect to incur any material incremental charges associated with the restructuring actions announced in February 2015. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Available-For-Sale Short-Term | Available-for-sale short-term investments (in thousands) As of September 27, 2015 December 31, 2014 Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cost Unrealized Gain Unrealized Loss Estimated Fair Value U.S. treasuries $ 60,067 $ 26 $ — $ 60,093 $ 114,944 $ 6 $ (15 ) $ 114,935 Certificates of deposit 269 — — 269 158 — — 158 Total $ 60,336 $ 26 $ — $ 60,362 $ 115,102 $ 6 $ (15 ) $ 115,093 |
Schedule Of Accounts Receivable And Related Allowances | Accounts receivable, net (in thousands) As of September 27, December 31, Gross accounts receivable $ 291,345 $ 296,239 Allowance for doubtful accounts (1,255 ) (1,255 ) Allowance for sales returns (14,394 ) (17,489 ) Allowance for price protection (1,523 ) (1,806 ) Total allowances (17,172 ) (20,550 ) Total accounts receivable, net $ 274,173 $ 275,689 |
Schedule Of Inventories | Inventories (in thousands) As of September 27, December 31, Raw materials $ 2,382 $ 3,625 Work in process 1 8 Finished goods 167,630 219,250 Total inventories $ 170,013 $ 222,883 |
Schedule Of Property And Equipment, Net | Property and equipment, net (in thousands) As of September 27, December 31, Computer equipment $ 10,399 $ 9,779 Furniture, fixtures and leasehold improvements 18,202 19,379 Software 30,140 29,294 Machinery and equipment 65,094 60,135 Total property and equipment, gross 123,835 118,587 Accumulated depreciation and amortization (99,884 ) (88,893 ) Total property and equipment, net $ 23,951 $ 29,694 |
Schedule Of Purchased Intangibles, Net | Intangibles, net (in thousands) Gross Accumulated Amortization Net September 27, 2015 Technology $ 61,099 $ (46,275 ) $ 14,824 Customer contracts and relationships 56,500 (21,519 ) 34,981 Other 10,545 (7,159 ) 3,386 Total intangibles, net $ 128,144 $ (74,953 ) $ 53,191 Gross Accumulated Amortization Net December 31, 2014 Technology $ 61,099 $ (39,341 ) $ 21,758 Customer contracts and relationships 56,500 (16,205 ) 40,295 Other 10,545 (6,368 ) 4,177 Total intangibles, net $ 128,144 $ (61,914 ) $ 66,230 |
Schedule Of Estimated Amortization Expense Related To Intangibles | Estimated amortization expense related to intangibles for each of the next five years and thereafter is as follows (in thousands): Year Ending December 31 Amount 2015 (remaining three months) $ 4,244 2016 16,921 2017 11,386 2018 7,871 2019 6,028 Thereafter 6,741 Total estimated amortization expense $ 53,191 |
Schedule of Other Assets, Noncurrent | Other non-current assets (in thousands) As of September 27, December 31, 2014 Non-current deferred income taxes $ 38,805 $ 38,696 Cost method investment 1,322 1,322 Other 7,278 8,059 Total other non-current assets $ 47,405 $ 48,077 |
Schedule Of Other Accrued Liabilities | Other accrued liabilities (in thousands) As of September 27, December 31, Sales and marketing programs $ 52,130 $ 54,582 Warranty obligation 47,928 44,888 Freight 6,550 6,827 Other 26,303 37,445 Total other accrued liabilities $ 132,911 $ 143,742 |
Derivative Financial Instrume20
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Fair Values Of The Company's Derivative Instruments And The Line Items On The Consolidated Balance Sheets | The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of September 27, 2015 and December 31, 2014 are summarized as follows (in thousands): Derivative Assets Balance Sheet Location Fair Value at Balance Sheet Location Fair Value at December 31, 2014 Derivative assets not designated as hedging instruments Prepaid expenses and other current assets $ 505 Prepaid expenses and other current assets $ 2,416 Derivative assets designated as hedging instruments Prepaid expenses and other current assets 32 Prepaid expenses and other current assets — Total $ 537 $ 2,416 Derivative Liabilities Balance Sheet Location Fair Value at Balance Sheet Location Fair Value at December 31, 2014 Derivative liabilities not designated as hedging instruments Other accrued liabilities $ 641 Other accrued liabilities $ 409 Derivative liabilities designated as hedging instruments Other accrued liabilities 37 Other accrued liabilities 38 Total $ 678 $ 447 |
Schedule of Offsetting of Derivative Assets | The following tables set forth the offsetting of derivative assets as of September 27, 2015 and December 31, 2014 (in thousands): As of September 27, 2015 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 73 $ — $ 73 $ (73 ) $ — $ — Wells Fargo 464 — 464 (283 ) — 181 Total $ 537 $ — $ 537 $ (356 ) $ — $ 181 As of December 31, 2014 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 319 $ — $ 319 $ (16 ) $ — $ 303 Wells Fargo 2,097 — 2,097 (431 ) — 1,666 Total $ 2,416 $ — $ 2,416 $ (447 ) $ — $ 1,969 |
Schedule of Offsetting of Derivative Liabilities | The following tables set forth the offsetting of derivative liabilities as of September 27, 2015 and December 31, 2014 (in thousands): As of September 27, 2015 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 372 $ — $ 372 $ (73 ) $ — $ 299 JP Morgan Chase 23 — 23 — — 23 Wells Fargo 283 — 283 (283 ) — — Total $ 678 $ — $ 678 $ (356 ) $ — $ 322 As of December 31, 2014 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 16 $ — $ 16 $ (16 ) $ — $ — Wells Fargo 431 — 431 (431 ) — — Total $ 447 $ — $ 447 $ (447 ) $ — $ — |
Schedule Of Company's Derivative Instruments On Other Comprehensive Income And The Consolidated Statement Of Operations | The effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three and nine months ended September 27, 2015 and September 28, 2014 are summarized as follows (in thousands): Derivatives Designated as Hedging Instruments Three Months Ended September 27, 2015 Gain (Loss) Recognized in OCI - Effective Portion (a) Location of Gain (Loss) Reclassified from OCI into Income - Effective Portion Gain (Loss) Reclassified from OCI into Income - Effective Portion (a) Location of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Amount of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Cash flow hedges: Foreign currency forward contracts $ (416 ) Net revenue $ (552 ) Other income (expense), net $ (9 ) Foreign currency forward contracts — Cost of revenue 3 Other income (expense), net — Foreign currency forward contracts — Operating expenses 123 Other income (expense), net — Total $ (416 ) $ (426 ) $ (9 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended September 27, 2015 Gain (Loss) Location of Gain (Loss) Location of Amount of Gain (Loss) Recognized in Cash flow hedges: Foreign currency forward contracts $ (1,299 ) Net revenue $ (1,474 ) Other income (expense), net $ (43 ) Foreign currency forward contracts — Cost of revenue 7 Other income (expense), net — Foreign currency forward contracts — Operating expenses 270 Other income (expense), net — Total $ (1,299 ) $ (1,197 ) $ (43 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Three Months Ended September 28, 2014 Gain (Loss) Recognized in OCI - Effective Portion (a) Location of Gain (Loss) Reclassified from OCI into Income - Effective Portion Gain (Loss) Reclassified from OCI into Income - Effective Portion (a) Location of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Amount of Gain (Loss) Recognized in Income and Excluded from Effectiveness Testing Cash flow hedges: Foreign currency forward contracts $ 401 Net revenue $ 320 Other income (expense), net $ (41 ) Foreign currency forward contracts — Cost of revenue — Other income (expense), net — Foreign currency forward contracts — Operating expenses (58 ) Other income (expense), net — Total $ 401 $ 262 $ (41 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended September 28, 2014 Gain (Loss) Location of Gain (Loss) Location of Amount of Gain (Loss) Recognized in Cash flow hedges: Foreign currency forward contracts $ (170 ) Net revenue $ (221 ) Other income (expense), net $ (107 ) Foreign currency forward contracts — Cost of revenue 8 Other income (expense), net — Foreign currency forward contracts — Operating expenses (23 ) Other income (expense), net — Total $ (170 ) $ (236 ) $ (107 ) (a) Refer to Note 8, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. |
Schedule Of Derivatives Not Designated As Hedging Instruments | The effects of the Company’s non-designated hedged included in other income (expense), net in the unaudited condensed consolidated statements of operations for the three and nine months ended September 27, 2015 and September 28, 2014 are as follows (in thousands): Derivatives Not Designated as Hedging Instruments Location of Gains (Losses) Recognized in Income on Derivative Amount of Gains (Losses) Recognized in Income Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Foreign currency forward contracts Other income (expense), net $ 1,267 $ 3,567 $ 3,278 $ 1,629 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Net Income Per Share | Net income per share for the three and nine months ended September 27, 2015 and September 28, 2014 are as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Numerator: Net income $ 15,099 $ 20,025 $ 26,777 $ 49,141 Denominator: Weighted average common shares - basic 31,979 35,643 33,473 36,133 Potentially dilutive common share equivalent 356 607 529 673 Weighted average common shares - dilutive 32,335 36,250 34,002 36,806 Basic net income per share $ 0.47 $ 0.56 $ 0.80 $ 1.36 Diluted net income per share $ 0.47 $ 0.55 $ 0.79 $ 1.34 Anti-dilutive employee stock-based awards, excluded 2,768 2,774 $ 2,486 $ 2,608 |
Commitments And Contingencies P
Commitments And Contingencies Product Warranties (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Warranty Obligation Changes in the Company’s warranty obligation, which is included in other accrued liabilities in the unaudited condensed consolidated balance sheets, are as follows (in thousands): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Balance as of beginning of the period $ 40,967 $ 41,934 $ 44,888 $ 48,754 Provision for warranty obligation made during the period 22,625 17,175 53,862 44,630 Settlements made during the period (15,664 ) (16,357 ) (50,822 ) (50,632 ) Balance at end of period $ 47,928 $ 42,752 $ 47,928 $ 42,752 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | The following table sets forth the changes in accumulated other comprehensive income ("AOCI") by component, net of tax, for the nine months ended September 27, 2015 (in thousands): Gains and losses on available for sale securities Gains and losses on derivatives Total Beginning balance as of December 31, 2014 $ (5 ) $ 43 $ 38 Other comprehensive income (loss) before reclassifications 21 (1,299 ) (1,278 ) Amounts reclassified from accumulated other comprehensive income — 1,197 1,197 Net current period other comprehensive income (loss) 21 (102 ) (81 ) Ending balance as of September 27, 2015 $ 16 $ (59 ) $ (43 ) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The following tables provide details about significant amounts reclassified out of each component of AOCI for the three and nine months ended September 27, 2015 and September 28, 2014 (in thousands): Details about Accumulated Other Comprehensive Income Components Three Months Ended September 27, 2015 Nine Months Ended September 27, 2015 Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Gains and losses on cash flow hedge: Foreign currency forward contracts $ (552 ) Net revenue $ (1,474 ) Net revenue Foreign currency forward contracts 3 Cost of revenue 7 Cost of revenue Foreign currency forward contracts 123 Operating expenses 270 Operating expenses (426 ) Total before tax (1,197 ) Total before tax — Tax expense (1) — Tax expense (1) $ (426 ) Total, net of tax $ (1,197 ) Total, net of tax (1) Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax. Details about Accumulated Other Comprehensive Income Components Three Months Ended September 28, 2014 Nine Months Ended September 28, 2014 Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations Gains and losses on cash flow hedge: Foreign currency forward contracts $ 320 Net revenue $ (221 ) Net revenue Foreign currency forward contracts — Cost of revenue 8 Cost of revenue Foreign currency forward contracts (58 ) Operating expenses (23 ) Operating expenses 262 Total before tax (236 ) Total before tax — Tax expense (1) — Tax expense (1) $ 262 Total, net of tax $ (236 ) Total, net of tax (1) Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Schedule Of Stock Option Activity | Option Activity Stock option activity during the nine months ended September 27, 2015 was as follows: Number of shares Weighted Average Exercise Price Per Share (in thousands) (in dollars) Outstanding at December 31, 2014 3,939 $ 30.58 Granted 296 31.34 Exercised (262 ) 23.44 Cancelled (128 ) 33.23 Expired (246 ) 34.82 Outstanding at September 27, 2015 3,599 $ 30.78 |
Schedule Of RSU Activity | RSU Activity RSU activity during the nine months ended September 27, 2015 was as follows: Number of shares Weighted Average Grant Date Fair Value Per Share (in thousands) (in dollars) Outstanding at December 31, 2014 858 $ 30.68 RSUs granted 468 32.13 RSUs vested (259 ) 31.04 RSUs cancelled (108 ) 31.44 Outstanding at September 27, 2015 959 $ 31.59 |
Schedule Of Valuation And Expense Information | The table below sets forth the weighted average assumptions used to estimate the fair value of option grants during the three and nine months ended September 27, 2015 and September 28, 2014 . Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Expected life (in years) N/A N/A 4.5 4.5 Risk-free interest rate N/A N/A 1.44% 1.44% Expected volatility N/A N/A 39.3% 42.6% Dividend yield N/A N/A — — |
Schedule Of Total Stock-Based Compensation Expense Resulting From Stock Options, Restricted Stock Awards, And The Employee Stock Purchase Plan | The following table sets forth the stock-based compensation expense resulting from stock options, RSUs and the ESPP included in the Company’s unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Cost of revenue $ 358 $ 573 $ 1,190 $ 1,533 Research and development 877 1,255 2,495 3,878 Sales and marketing 1,173 1,409 3,838 4,759 General and administrative 1,703 1,925 4,994 5,056 Total stock-based compensation $ 4,111 $ 5,162 $ 12,517 $ 15,226 |
Segment Information and Opera25
Segment Information and Operations By Geographic Area (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Reportable Segment And Reconciliation Of Segment Contribution Income To Income Before Income Taxes | Financial information for each reportable segment and a reconciliation of segment contribution income to income before income taxes is as follows (in thousands, except percentage data): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, Net revenue: Retail $ 164,081 $ 131,341 $ 416,847 $ 360,236 Commercial 65,187 71,974 200,935 226,284 Service provider 112,625 150,023 322,050 453,813 Total net revenue 341,893 353,338 939,832 1,040,333 Contribution income: Retail $ 21,149 $ 21,813 $ 53,715 $ 51,222 Retail contribution margin 12.9 % 16.6 % 12.9 % 14.2 % Commercial 13,700 15,112 42,507 51,781 Commercial contribution margin 21.0 % 21.0 % 21.2 % 22.9 % Service Provider 14,819 14,164 27,472 42,918 Service Provider contribution margin 13.2 % 9.4 % 8.5 % 9.5 % Total segment contribution income 49,668 51,089 123,694 145,921 Corporate and unallocated costs (14,363 ) (13,544 ) (39,559 ) (40,428 ) Amortization of intangibles (1) (4,165 ) (4,396 ) (12,804 ) (13,177 ) Stock-based compensation expense (4,111 ) (5,162 ) (12,517 ) (15,226 ) Restructuring and other charges (1,016 ) (1,360 ) (6,384 ) (2,190 ) Acquisition-related expense — — — (8 ) Losses on inventory commitments due to restructuring — — (407 ) — Litigation reserves, net — (69 ) 2,690 (254 ) Interest income 65 68 184 174 Other income (expense), net (199 ) 2,246 (67 ) 1,911 Income before income taxes $ 25,879 $ 28,872 $ 54,830 $ 76,723 ________________________________ (1) Amount excludes amortization expense related to patents included in cost of revenue. |
Schedule Of Net Revenue By Geography Periods | The following table shows net revenue by geography for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, United States (U.S.) $ 213,913 $ 188,569 $ 552,787 $ 561,067 Americas (excluding U.S.) 5,823 5,335 13,194 15,150 United Kingdom (U.K.) 27,850 38,933 80,965 122,707 EMEA (excluding U.K.) 49,875 69,488 153,862 192,943 APAC $ 44,432 $ 51,013 $ 139,024 $ 148,466 Total net revenue $ 341,893 $ 353,338 $ 939,832 $ 1,040,333 |
Schedule Of Long-Lived Asset By Geographic Areas | Property and equipment, net, by geographic location are as follows (in thousands): As of September 27, December 31, United States $ 10,200 $ 12,453 Canada 3,982 4,375 EMEA 506 657 China 7,723 10,786 APAC (excluding China) 1,540 1,423 $ 23,951 $ 29,694 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured On Recurring Basis | As of December 31, 2014 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents—money-market funds $ 4,408 $ 4,408 $ — $ — Available-for-sale securities—U.S. treasuries (1) 114,935 114,935 — — Available-for-sale securities—certificates of deposit (1) 158 158 — — Trading securities—mutual funds (1) 802 802 — — Foreign currency forward contracts (2) 2,416 — 2,416 — Total assets measured at fair value $ 122,719 $ 120,303 $ 2,416 $ — (1) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. As of September 27, 2015 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents—money-market funds $ 45,904 $ 45,904 $ — $ — Available-for-sale securities—U.S. treasuries (1) 60,093 60,093 — — Available-for-sale securities—certificates of deposit (1) 269 269 — — Trading securities—mutual funds (1) 1,057 1,057 — — Foreign currency forward contracts (2) 537 — 537 — Total assets measured at fair value $ 107,860 $ 107,323 $ 537 $ — (1) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. |
Fair Value, Liabilities Measured On Recurring Basis | As of September 27, 2015 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Foreign currency forward contracts (3) $ 678 $ — $ 678 $ — Total liabilities measured at fair value $ 678 $ — $ 678 $ — (3) Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. As of December 31, 2014 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Foreign currency forward contracts (3) $ 447 $ — $ 447 $ — Total liabilities measured at fair value $ 447 $ — $ 447 $ — (3) Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. |
Restructuring and Other Charg27
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other charges [Table Text Block] | The following table provides a summary of the activity related to accrued restructuring and other charges for the nine months ended September 27, 2015 (in thousands): Accrued Restructuring and Other Charges at December 31, 2014 Additions (a) Cash Payments Accrued Restructuring and Other Charges at September 27, 2015 Restructuring Employee termination charges $ 316 $ 4,689 $ (4,610 ) $ 395 Lease contract termination and other charges — 1,243 $ (592 ) 651 Total Restructuring and other charges $ 316 $ 5,932 $ (5,202 ) $ 1,046 (a) Total restructuring and other charges recognized in the Company's unaudited condensed consolidated statement of operations for the nine months ended September 27, 2015 includes non-cash charges and adjustments, net of $0.5 million . These amounts have been excluded from the table above. |
Balance Sheet Components (Sched
Balance Sheet Components (Schedule Of Available-For-Sale Short-Term) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Cost | $ 60,336 | $ 115,102 |
Unrealized Gain | 26 | 6 |
Unrealized Loss | 0 | (15) |
Estimated Fair Value | 60,362 | 115,093 |
U.S. Treasuries [Member] | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Cost | 60,067 | 114,944 |
Unrealized Gain | 26 | 6 |
Unrealized Loss | 0 | (15) |
Estimated Fair Value | 60,093 | 114,935 |
Certificates Of Deposits [Member] | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Cost | 269 | 158 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | $ 269 | $ 158 |
Balance Sheet Components (Sch29
Balance Sheet Components (Schedule Of Accounts Receivable And Related Allowances) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 291,345 | $ 296,239 |
Total allowances | (17,172) | (20,550) |
Accounts receivable, net | 274,173 | 275,689 |
Allowance for Doubtful Accounts, Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total allowances | (1,255) | (1,255) |
Allowance for Sales Returns [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total allowances | (14,394) | (17,489) |
Allowance For Price Protection [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total allowances | $ (1,523) | $ (1,806) |
Balance Sheet Components (Sch30
Balance Sheet Components (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 2,382 | $ 3,625 |
Work in process | 1 | 8 |
Finished Goods | 167,630 | 219,250 |
Total | $ 170,013 | $ 222,883 |
Balance Sheet Components (Sch31
Balance Sheet Components (Schedule Of Property And Equipment, Net) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Total property and equipment, gross | $ 123,835 | $ 118,587 |
Accumulated depreciation and amortization | (99,884) | (88,893) |
Total property and equipment, net | 23,951 | 29,694 |
Computer Equipment [Member] | ||
Total property and equipment, gross | 10,399 | 9,779 |
Furniture, Fixtures And Leasehold Improvements [Member] | ||
Total property and equipment, gross | 18,202 | 19,379 |
Software [Member] | ||
Total property and equipment, gross | 30,140 | 29,294 |
Machinery And Equipment [Member] | ||
Total property and equipment, gross | $ 65,094 | $ 60,135 |
Balance Sheet Components Balanc
Balance Sheet Components Balance Sheet Components - Property and Equipment, Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 4.4 | $ 4.6 | $ 13.8 | $ 13.1 |
Balance Sheet Components (Sch33
Balance Sheet Components (Schedule Of Intangibles, Net) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Intangible Assets [Line Items] | ||
Gross | $ 128,144 | $ 128,144 |
Accumulated Amortization | (74,953) | (61,914) |
Finite-Lived Intangible Assets, Net | 53,191 | 66,230 |
Technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross | 61,099 | 61,099 |
Accumulated Amortization | (46,275) | (39,341) |
Finite-Lived Intangible Assets, Net | 14,824 | 21,758 |
Customer Contracts And Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross | 56,500 | 56,500 |
Accumulated Amortization | (21,519) | (16,205) |
Finite-Lived Intangible Assets, Net | 34,981 | 40,295 |
Other [Member] | ||
Intangible Assets [Line Items] | ||
Gross | 10,545 | 10,545 |
Accumulated Amortization | (7,159) | (6,368) |
Finite-Lived Intangible Assets, Net | $ 3,386 | $ 4,177 |
Balance Sheet Components (Sch34
Balance Sheet Components (Schedule Of Estimated Amortization Expense Related To Intangibles) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
2015 (remaining three months) | $ 4,244 | |
2,016 | 16,921 | |
2,017 | 11,386 | |
2,018 | 7,871 | |
2,019 | 6,028 | |
Thereafter | 6,741 | |
Total expected amortization expense | $ 53,191 | $ 66,230 |
Balance Sheet Components Bala35
Balance Sheet Components Balance Sheet Components- Intangibles, Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 4.2 | $ 4.5 | $ 13 | $ 13.4 |
Balance Sheet Components Schedu
Balance Sheet Components Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Non-current deferred income taxes | $ 38,805 | $ 38,696 |
Cost method investment | 1,322 | 1,322 |
Other | 7,278 | 8,059 |
Total other non-current assets | $ 47,405 | $ 48,077 |
Balance Sheet Components (Sch37
Balance Sheet Components (Schedule Of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Sales and marketing programs | $ 52,130 | $ 54,582 |
Warranty obligation | 47,928 | 44,888 |
Freight | 6,550 | 6,827 |
Other | 26,303 | 37,445 |
Total other accrued liabilities | $ 132,911 | $ 143,742 |
Derivative Financial Instrume38
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 27, 2015USD ($)derivative_instrumentderivative_instruments | |
Foreign Currency Forward Contracts [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract ( in months) | 6 months |
Foreign Currency Forward Contracts [Member] | Cash Flow Hedges [Member] | |
Derivative [Line Items] | |
Approximate number of derivatives per quarter (in derivatives) | derivative_instrument | 5 |
Cash flow hedge | $ 7 |
Number of months taken by the company to reclass the amounts recorded in other comprehensive income to earnings (in months) | 12 months |
Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract ( in months) | 3 months |
Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract ( in months) | 5 months |
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | |
Derivative [Line Items] | |
Approximate number of derivatives per quarter (in derivatives) | derivative_instruments | 15 |
Cash flow hedge | $ 2 |
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract ( in months) | 1 month |
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract ( in months) | 5 months |
Derivative Financial Instrume39
Derivative Financial Instruments (Schedule Of Fair Values Of The Company's Derivative Instruments And The Line Items On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | $ 537 | $ 2,416 |
Gross Amounts of Recognized Liabilities | 678 | 447 |
Prepaid Expenses And Other Current Assets [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | 505 | 2,416 |
Prepaid Expenses And Other Current Assets [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | 32 | 0 |
Other Accrued Liabilities [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | 641 | 409 |
Other Accrued Liabilities [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 37 | $ 38 |
Derivative Financial Instrume40
Derivative Financial Instruments Scheduel of Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Offsetting of Derivative Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 537 | $ 2,416 |
Gross Amounts Offset in the balance sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 537 | 2,416 |
Financial Instruments | (356) | (447) |
Cash Collateral Pledged | 0 | 0 |
Net Amounts | 181 | 1,969 |
Barclays [Member] | ||
Offsetting of Derivative Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 73 | 319 |
Gross Amounts Offset in the balance sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 73 | 319 |
Financial Instruments | (73) | (16) |
Cash Collateral Pledged | 0 | 0 |
Net Amounts | 0 | 303 |
Wells Fargo Bank [Member] | ||
Offsetting of Derivative Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 464 | 2,097 |
Gross Amounts Offset in the balance sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 464 | 2,097 |
Financial Instruments | (283) | (431) |
Cash Collateral Pledged | 0 | 0 |
Net Amounts | $ 181 | $ 1,666 |
Derivative Financial Instrume41
Derivative Financial Instruments Schedule of Offsetting of Derivate Liabilities (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 678 | $ 447 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 678 | 447 |
Financial Instruments | (356) | (447) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 322 | 0 |
Barclays [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 372 | 16 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 372 | 16 |
Financial Instruments | (73) | (16) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 299 | 0 |
J.P. Morgan Chase [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 23 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Balance Sheet | 23 | |
Financial Instruments | 0 | |
Cash Collateral Pledged | 0 | |
Net Amount | 23 | |
Wells Fargo Bank [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 283 | 431 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 283 | 431 |
Financial Instruments | (283) | (431) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Financial Instrume42
Derivative Financial Instruments (Schedule Of Company's Derivative Instruments On Other Comprehensive Income And The Consolidated Statement Of Operations) (Details) - Derivatives Designated As Hedging Instruments [Member] - Foreign Currency Forward Contracts [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (Loss) Recognized in OCI-Effective Portion | [1] | $ (416) | $ 401 | $ (1,299) | $ (170) |
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | (426) | 262 | (1,197) | (236) |
Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing | (9) | (41) | (43) | (107) | |
Other Income (expense), Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing | (9) | (41) | (43) | (107) | |
Net Revenue [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | (552) | 320 | (1,474) | (221) |
Cost Of Revenue [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | 3 | 0 | 7 | 8 |
Operating Expenses [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | $ 123 | $ (58) | $ 270 | $ (23) |
[1] | Refer to Note 8, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives. |
Derivative Financial Instrume43
Derivative Financial Instruments (Schedule Of Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Other Income (expense), Net [Member] | Foreign Currency Forward Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gains or (Losses) Recognized in Income on Derivative | $ 1,267 | $ 3,567 | $ 3,278 | $ 1,629 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 15,099 | $ 20,025 | $ 26,777 | $ 49,141 |
Weighted average shares outstanding: Basic (in shares) | 31,979 | 35,643 | 33,473 | 36,133 |
Potentially dilutive common share equivalent (in shares) | 356 | 607 | 529 | 673 |
Weighted average common shares outstanding: dilutive (in shares) | 32,335 | 36,250 | 34,002 | 36,806 |
Basic net income per share (in dollars per share) | $ 0.47 | $ 0.56 | $ 0.80 | $ 1.36 |
Diluted net income per share (in dollars per share) | $ 0.47 | $ 0.55 | $ 0.79 | $ 1.34 |
Anti-dilutive employee stock-based awards, excluded (in shares) | 2,768 | 2,774 | 2,486 | 2,608 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 10,780 | $ 8,847 | $ 28,053 | $ 27,582 |
Provision for income taxes (in percentage) | 41.70% | 30.60% | 51.20% | 36.00% |
Possible reduction in liabilities for uncertain tax positions | $ 700 | $ 700 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2015USD ($)claimscase | Jun. 30, 2013USD ($)$ / products | Sep. 27, 2015USD ($)claims | Jul. 01, 2015patent | Dec. 31, 2014USD ($)$ / products | Dec. 31, 2013USD ($)$ / d | Jul. 01, 2012patent | Sep. 14, 2010patents | |
Purchase Obligation [Line Items] | ||||||||
Lease Expiration Date | Dec. 31, 2026 | |||||||
Purchase Commitment, Remaining Minimum Amount Committed | $ 158,000,000 | $ 158,000,000 | ||||||
Number of days for non-cancellation of purchase obligations prior to expected shipment date | 30 days | |||||||
Loss Contingencies [Line Items] | ||||||||
Continued vesting period after termination without cause (in years) | 1 year | |||||||
Number of exiting cases and procedings that the Company currently believes are liking to have a material adverse effect on its financial position | $ 0 | $ 0 | ||||||
Number of exiting cases and proceedings that the Company currently believes are liking to have a material adverse effect on its financial position | claims | 0 | 0 | ||||||
The future length the Company currently considered regarding existing cases and proceedings that are likely to have a material adverse effect on it (in months) | 12 months | |||||||
Liability for Director and Officer Indemnification Agreements | $ 0 | $ 0 | ||||||
Liability For Customers, Distributors, and Resellers Indemnification Agreements | $ 0 | $ 0 | ||||||
Number of active cases the suing company has in a district | case | 40 | |||||||
Chief Executive Officer [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of weeks for which salary is payable upon termination of employment without cause (in days) | 365 days | |||||||
Number of years after change of control to trigger full accelerated vest of unvested portion of stock options (in years) | 1 year | |||||||
Senior Vice President Of Worldwide Operations And Support [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of weeks for which salary is payable upon termination of employment without cause (in days) | 273 days | |||||||
Other Key Executives [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of weeks for which salary is payable upon termination of employment without cause (in days) | 182 days | |||||||
Maximum number of years covered by accelerated vest for other key executives if term without cause is within one year of change in control (in years) | 2 years | |||||||
46 To 60 Days [Member] | ||||||||
Purchase Obligation [Line Items] | ||||||||
Percentage of cancelable orders. | 50.00% | 50.00% | ||||||
31 To 45 Days [Member] | ||||||||
Purchase Obligation [Line Items] | ||||||||
Percentage of cancelable orders. | 25.00% | 25.00% | ||||||
Minimum [Member] | 46 To 60 Days [Member] | ||||||||
Purchase Obligation [Line Items] | ||||||||
Required Notice Period Prior To The Expected Shipment Date | 46 days | |||||||
Minimum [Member] | 31 To 45 Days [Member] | ||||||||
Purchase Obligation [Line Items] | ||||||||
Required Notice Period Prior To The Expected Shipment Date | 31 days | |||||||
Maximum [Member] | 46 To 60 Days [Member] | ||||||||
Purchase Obligation [Line Items] | ||||||||
Required Notice Period Prior To The Expected Shipment Date | 60 days | |||||||
Maximum [Member] | 31 To 45 Days [Member] | ||||||||
Purchase Obligation [Line Items] | ||||||||
Required Notice Period Prior To The Expected Shipment Date | 45 days | |||||||
Ericsson v. NETGEAR [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of Patents Company Is Accused Of Infringing | 5 | 8 | ||||||
Reasonable and nondiscriminatory (RAND) royalty rate (USD per unit) | $ / products | 0.15 | |||||||
Foregone colleting verdict amount (in USD) | $ 3,600,000 | $ 3,555,000 | ||||||
Foregone collecting pre-judgment interest ( in USD) | $ 224,141 | |||||||
Foregone collecting pre judgment interest (USD per day) | $ / d | 336 | |||||||
Foregone Collecting Costs (in USD) | $ 41,667 | |||||||
Foregone reasonable and nondiscriminatory (RAND) royalty rate | $ / products | 0.15 | |||||||
Ericsson v. NETGEAR [Member] | D-Link [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | $ 435,000 | |||||||
Ericsson v. NETGEAR [Member] | NETGEAR [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | 3,555,000 | |||||||
Ericsson v. NETGEAR [Member] | Toshiba [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | 2,445,000 | |||||||
Ericsson v. NETGEAR [Member] | Belkin [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | 600,000 | |||||||
Ericsson v. NETGEAR [Member] | Acer Gateway [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | 1,170,000 | |||||||
Ericsson v. NETGEAR [Member] | Dell [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | $ 1,920,000 | |||||||
Chrismar Systems vs. NETGEAR [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of Patents Company Is Accused Of Infringing | patent | 4 |
Commitments And Contingencies S
Commitments And Contingencies Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance as of beginning of the period | $ 40,967 | $ 41,934 | $ 44,888 | $ 48,754 |
Provision for warranty liability made during the period | 22,625 | 17,175 | 53,862 | 44,630 |
Settlements made during the period | (15,664) | (16,357) | (50,822) | (50,632) |
Balance at end of period | $ 47,928 | $ 42,752 | $ 47,928 | $ 42,752 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchased and Retired During Period, Shares | 3,400 | 2,100 |
Stock repurchased and retired during the period, value | $ 105.2 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,600 | |
Shares Repurchased And Retired Related to Net of Issuances Shares, Shares | 77 | 50 |
Payments Related to Tax Withholding for net share settlement | $ 2.4 | $ 1.6 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Changes in Accumulated Other Comprehensive Income by Component Net of Tax) (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | The following table sets forth the changes in accumulated other comprehensive income ("AOCI") by component, net of tax, for the nine months ended September 27, 2015 (in thousands): Gains and losses on available for sale securities Gains and losses on derivatives Total Beginning balance as of December 31, 2014 $ (5 ) $ 43 $ 38 Other comprehensive income (loss) before reclassifications 21 (1,299 ) (1,278 ) Amounts reclassified from accumulated other comprehensive income — 1,197 1,197 Net current period other comprehensive income (loss) 21 (102 ) (81 ) Ending balance as of September 27, 2015 $ 16 $ (59 ) $ (43 ) |
Beginning balance | $ 38 |
Other comprehensive income (loss) before reclassifications | (1,278) |
Amounts reclassified from accumulated other comprehensive income | 1,197 |
Net current period other comprehensive income (loss) | (81) |
Ending balance | (43) |
Gain and losses on available for for securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (5) |
Other comprehensive income (loss) before reclassifications | 21 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income (loss) | 21 |
Ending balance | 16 |
Gains and losses on derivatives [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 43 |
Other comprehensive income (loss) before reclassifications | (1,299) |
Amounts reclassified from accumulated other comprehensive income | 1,197 |
Net current period other comprehensive income (loss) | (102) |
Ending balance | $ (59) |
Stockholders' Equity (Schedul50
Stockholders' Equity (Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other Comprehensive Income (Loss), Tax | $ 2 | $ 1 | $ 13 | $ 10 | |
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | |||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | (426) | 262 | (1,197) | (236) |
Other Comprehensive Income (Loss), Tax | [2] | 0 | 0 | 0 | 0 |
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Net Revenue [Member] | |||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | (552) | 320 | (1,474) | (221) |
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Cost Of Revenue [Member] | |||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | 3 | 0 | 7 | 8 |
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Operating Expenses [Member] | |||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | [1] | $ 123 | $ (58) | $ 270 | $ (23) |
[1] | Refer to Note 8, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives. | ||||
[2] | Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) shares in Millions, $ in Millions | 9 Months Ended |
Sep. 27, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted, vesting term (in years) | 4 years |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation | $ | $ 7.9 |
Weighted-average period of recognition of stock based compensation (in days) | 923 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation | $ | $ 21 |
Weighted-average period of recognition of stock based compensation (in days) | 971 days |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved for future grant (in shares) | 0.1 |
Maximum Percentage of compensation contributed by employees (in percentage) | 10.00% |
Purchase percentage of stock at fair market value (in percentage) | 85.00% |
2006 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved for future grant (in shares) | 1.5 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Stock Option Activity) (Details) - Stock Options [Member] shares in Thousands | 9 Months Ended |
Sep. 27, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares, Beginning Balance | 3,939 |
Number of Shares, Granted | 296 |
Number of Shares, Exercised | (262) |
Number of shares, Cancelled | (128) |
Number of shares, Expired | (246) |
Number of Shares, Ending Balance | 3,599 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ / shares | $ 30.58 |
Granted, Weighted Average Exercise Price (in dollars per share) | $ / shares | 31.34 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ / shares | 23.44 |
Cancelled, Weighted Average Exercise Price (in dollars per share) | $ / shares | 33.23 |
Expired, Weighted Average Exercise Price (in dollars per share) | $ / shares | 34.82 |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares | $ 30.78 |
Employee Benefit Plans (Sched53
Employee Benefit Plans (Schedule Of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Sep. 27, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Number of Shares, Beginning Balance | 858 |
Number of Shares, Granted | 468 |
Number of Shares, Vested | (259) |
Number of Shares, Cancelled | (108) |
Number of Shares, Ending Balance | 959 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning Balance (in dollars per share) | $ / shares | $ 30.68 |
Granted (in dollars per share) | $ / shares | 32.13 |
Vested (in dollars per share) | $ / shares | 31.04 |
Cancelled (in dollars per share) | $ / shares | 31.44 |
Ending Balance (in dollars per share) | $ / shares | $ 31.59 |
Employee Benefit Plans (Sched54
Employee Benefit Plans (Schedule Of Valuation And Expense Information) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected Term | 4 years 6 months | 4 years 6 months | ||
Risk Free Interest Rate | 1.44% | 1.44% | ||
Expected Volatility Rate | 39.30% | 42.60% | ||
Dividend yield (in percentage) | 0.00% | 0.00% |
Employee Benefit Plans (Sched55
Employee Benefit Plans (Schedule Of Total Stock-Based Compensation Expense Resulting From Stock Options, Restricted Stock Awards, And The Employee Stock Purchase Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4,111 | $ 5,162 | $ 12,517 | $ 15,226 |
Cost Of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 358 | 573 | 1,190 | 1,533 |
Research And Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 877 | 1,255 | 2,495 | 3,878 |
Sales And Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,173 | 1,409 | 3,838 | 4,759 |
General And Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,703 | $ 1,925 | $ 4,994 | $ 5,056 |
Segment Information and Opera56
Segment Information and Operations By Geographic Area(Narrative) (Details) | 9 Months Ended |
Sep. 27, 2015business_unit | |
Number of reportable segments (in segments) | 3 |
Segment Information and Opera57
Segment Information and Operations By Geographic Area (Schedule Of Reportable Segment And Reconciliation Of Segment Contribution Income To Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | ||||
Segment Reporting Information [Line Items] | |||||||
Total net revenues | $ 341,893 | $ 353,338 | $ 939,832 | $ 1,040,333 | |||
Total segment contribution income | 49,668 | 51,089 | 123,694 | 145,921 | |||
Corporate and unallocated costs | (14,363) | (13,544) | (39,559) | (40,428) | |||
Amortization of intangible assets | (4,165) | [1] | (4,396) | [1] | (12,804) | [1] | (13,177) |
Stock-based compensation expense | (4,111) | (5,162) | (12,517) | (15,226) | |||
Restructuring and other charges | (1,016) | (1,360) | (6,384) | (2,190) | |||
Acquisition-related expense | 0 | 0 | 0 | (8) | |||
Losses on inventory commitments due to restructuring | 0 | 0 | (407) | 0 | |||
Litigation reserves, net | 0 | (69) | 2,690 | (254) | |||
Interest income | 65 | 68 | 184 | 174 | |||
Other income (expense), net | (199) | 2,246 | (67) | 1,911 | |||
Income before income taxes | 25,879 | 28,872 | 54,830 | 76,723 | |||
Retail [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenues | 164,081 | 131,341 | 416,847 | 360,236 | |||
Total segment contribution income | $ 21,149 | $ 21,813 | $ 53,715 | $ 51,222 | |||
Segment contribution margin (in percentage) | 12.90% | 16.60% | 12.90% | 14.20% | |||
Commercial [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenues | $ 65,187 | $ 71,974 | $ 200,935 | $ 226,284 | |||
Total segment contribution income | $ 13,700 | $ 15,112 | $ 42,507 | $ 51,781 | |||
Segment contribution margin (in percentage) | 21.00% | 21.00% | 21.20% | 22.90% | |||
Service Provider [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenues | $ 112,625 | $ 150,023 | $ 322,050 | $ 453,813 | |||
Total segment contribution income | $ 14,819 | $ 14,164 | $ 27,472 | $ 42,918 | |||
Segment contribution margin (in percentage) | 13.20% | 9.40% | 8.50% | 9.50% | |||
[1] | Amount excludes amortization expense related to patents included in cost of revenue. |
Segment Information and Opera58
Segment Information and Operations By Geographic Area (Schedule Of Net Revenue By Geography Periods) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 341,893 | $ 353,338 | $ 939,832 | $ 1,040,333 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 213,913 | 188,569 | 552,787 | 561,067 |
Americas Excluding United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 5,823 | 5,335 | 13,194 | 15,150 |
United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 27,850 | 38,933 | 80,965 | 122,707 |
EMEA Excluding United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 49,875 | 69,488 | 153,862 | 192,943 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 44,432 | $ 51,013 | $ 139,024 | $ 148,466 |
Segment Information and Opera59
Segment Information and Operations By Geographic Area (Schedule Of Long-Lived Asset By Geographic Areas) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 23,951 | $ 29,694 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 10,200 | 12,453 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,982 | 4,375 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 506 | 657 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 7,723 | 10,786 |
APAC Excluding China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,540 | $ 1,423 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Valuation Of Company's Financial Instruments By Various Levels) (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | $ 107,860 | $ 122,719 | |
Liabilities, Fair value | 678 | 447 | |
Quoted Market Prices In Active Markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | 107,323 | 120,303 | |
Liabilities, Fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | 537 | 2,416 | |
Liabilities, Fair value | 678 | 447 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | 0 | 0 | |
Liabilities, Fair value | 0 | 0 | |
Foreign Currency Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [1] | 537 | 2,416 |
Liabilities, Fair value | [2] | 678 | 447 |
Foreign Currency Forward Contracts [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [1] | 0 | 0 |
Liabilities, Fair value | [2] | 0 | 0 |
Foreign Currency Forward Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [1] | 537 | 2,416 |
Liabilities, Fair value | [2] | 678 | 447 |
Foreign Currency Forward Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [1] | 0 | 0 |
Liabilities, Fair value | [2] | 0 | 0 |
Money Market Funds [Member] | Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | 45,904 | 4,408 | |
Money Market Funds [Member] | Cash Equivalents [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | 45,904 | 4,408 | |
Money Market Funds [Member] | Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | 0 | 0 | |
Money Market Funds [Member] | Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | 0 | 0 | |
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 60,093 | 114,935 |
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 60,093 | 114,935 |
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 0 | 0 |
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 0 | 0 |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 269 | 158 |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 269 | 158 |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 0 | 0 |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 0 | 0 |
Mutual Funds [Member] | Trading Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 1,057 | 802 |
Mutual Funds [Member] | Trading Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 1,057 | 802 |
Mutual Funds [Member] | Trading Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | 0 | 0 |
Mutual Funds [Member] | Trading Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value | [3] | $ 0 | $ 0 |
[1] | Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet | ||
[2] | Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. | ||
[3] | Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. |
Shipping and Handling Fees an61
Shipping and Handling Fees and Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Shipping And Handling Fees And Costs [Abstract] | ||||
Shipping, Handling and Transportation Costs | $ 2.3 | $ 2.7 | $ 7.9 | $ 7.7 |
Restructuring and Other Charg62
Restructuring and Other Charges (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 27, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Non cash charges and adjustments, net | $ 0.5 |
Restructuring and Other Charg63
Restructuring and Other Charges Schedule of Restructuring and Other Charges (Details) $ in Thousands | 9 Months Ended | |
Sep. 27, 2015USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Beginning Balance | $ 316 | |
Additions to restructuring | 5,932 | [1] |
Payments for Restructuring | (5,202) | |
Restructuring Ending Balance | 1,046 | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Beginning Balance | 316 | |
Additions to restructuring | 4,689 | [1] |
Payments for Restructuring | (4,610) | |
Restructuring Ending Balance | 395 | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Beginning Balance | 0 | |
Additions to restructuring | 1,243 | [1] |
Payments for Restructuring | (592) | |
Restructuring Ending Balance | $ 651 | |
[1] | Total restructuring and other charges recognized in the Company's unaudited condensed consolidated statement of operations for the nine months ended September 27, 2015 includes non-cash charges and adjustments, net of $0.5 million. These amounts have been excluded from the table above. |