Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 28, 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 | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 32,418,414 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 401.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 181,945 | $ 141,234 |
Short-term investments | 96,321 | 115,895 |
Accounts receivable, net | 290,642 | 275,689 |
Inventories | 213,118 | 222,883 |
Deferred income taxes | 0 | 29,039 |
Prepaid expenses and other current assets | 39,117 | 38,225 |
Total current assets | 821,143 | 822,965 |
Property and equipment, net | 22,384 | 29,694 |
Intangibles, net | 48,947 | 66,230 |
Goodwill | 81,721 | 81,721 |
Other non-current assets | 76,374 | 48,077 |
Total assets | 1,050,569 | 1,048,687 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 90,546 | 106,357 |
Accrued employee compensation | 27,868 | 21,588 |
Other accrued liabilities | 166,282 | 143,742 |
Deferred revenue | 29,125 | 30,023 |
Income taxes payable | 1,951 | 2,406 |
Total current liabilities | 315,772 | 304,116 |
Non-current income taxes payable | 14,444 | 15,252 |
Other non-current liabilities | 11,643 | 7,754 |
Total liabilities | 341,859 | 327,122 |
Stockholders’ equity: | ||
Preferred stock: $0.001 par value; 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock: $0.001 par value; 200,000,000 shares authorized; shared issued and outstanding: 36,839,522 and 38,341,644 at December 31, 2013 and 2012, respectively | 33 | 35 |
Additional paid-in capital | 513,047 | 454,144 |
Cumulative other comprehensive income | 3 | 38 |
Retained earnings | 195,627 | 267,348 |
Total stockholders’ equity | 708,710 | 721,565 |
Total liabilities and stockholders’ equity | $ 1,050,569 | $ 1,048,687 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 32,600,990 | 34,709,022 |
Common Stock, Shares, Outstanding | 32,600,990 | 34,709,022 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net revenue | $ 1,300,695 | $ 1,393,515 | $ 1,369,633 |
Cost of revenue | 933,016 | 995,597 | 976,018 |
Gross profit | 367,679 | 397,918 | 393,615 |
Operating expenses: | |||
Research and development | 86,499 | 90,902 | 85,168 |
Sales and marketing | 146,794 | 157,017 | 153,804 |
General and administrative | 45,313 | 46,552 | 48,915 |
Restructuring and other charges | 6,398 | 2,209 | 5,335 |
Litigation reserves, net | (2,682) | (1,011) | 5,354 |
Goodwill impairment charges | 0 | 74,196 | 0 |
Intangibles Impairment charges | 0 | 0 | 2,000 |
Total operating expenses | 282,322 | 369,865 | 300,576 |
Income from operations | 85,357 | 28,053 | 93,039 |
Interest income | 295 | 253 | 400 |
Other income (expense), net | (88) | 2,455 | (457) |
Income before income taxes | 85,564 | 30,761 | 92,982 |
Provision for income taxes | 36,980 | 21,973 | 37,765 |
Net Income | $ 48,584 | $ 8,788 | $ 55,217 |
Net income per share: | |||
Basic net income per share (in dollars per share) | $ 1.47 | $ 0.25 | $ 1.44 |
Diluted net income per share (in dollars per share) | $ 1.44 | $ 0.24 | $ 1.42 |
Weighted average shares outstanding used to compute net income per share: | |||
Basic (in shares) | 33,161 | 35,771 | 38,379 |
Diluted (in shares) | 33,788 | 36,445 | 38,948 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income | $ 48,584 | $ 8,788 | $ 55,217 |
Other comprehensive income (loss), before tax: | |||
Unrealized gain (loss) on derivative instruments | 0 | (22) | 89 |
Unrealized gain (loss) on available-for-sale securities | (56) | (14) | (40) |
Other comprehensive income (loss), before tax | (56) | (36) | 49 |
Tax benefit (expense) related to items of other comprehensive income | 21 | 5 | 16 |
Other comprehensive income (loss), net of tax | (35) | (31) | 65 |
Comprehensive income | $ 48,549 | $ 8,757 | $ 55,282 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Cumulative Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance,shares at Dec. 31, 2012 | 38,342 | ||||
Balance at Dec. 31, 2012 | $ 754,611 | $ 38 | $ 394,427 | $ 4 | $ 360,142 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on available-for-sale Securities, Net of Tax | (24) | (24) | |||
Change in unrealized gains and losses on derivatives, Net of Tax | 89 | 89 | |||
Net Income | 55,217 | 55,217 | |||
Share-based Compensation expense | 17,419 | 17,419 | |||
Stock Repurchased and Retired During Period, Shares | (2,018) | ||||
Stock Repurchased and Retired During Period, Value | (63,584) | $ (1) | (63,583) | ||
Issuance of common stock under stock-based compensation plans, shares | 516 | ||||
Issuance of common stock under stock-based compensation plans | 9,626 | $ 0 | 9,626 | ||
Income tax impact associated with stock option exercises | 429 | 429 | |||
Balance,shares at Dec. 31, 2013 | 36,840 | ||||
Balance at Dec. 31, 2013 | 773,783 | $ 37 | 421,901 | 69 | 351,776 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on available-for-sale Securities, Net of Tax | (9) | (9) | |||
Change in unrealized gains and losses on derivatives, Net of Tax | (22) | (22) | |||
Net Income | 8,788 | 8,788 | |||
Share-based Compensation expense | 19,983 | 19,983 | |||
Stock Repurchased and Retired During Period, Shares | (2,908) | ||||
Stock Repurchased and Retired During Period, Value | (93,218) | $ (2) | (93,216) | ||
Issuance of common stock under stock-based compensation plans, shares | 777 | ||||
Issuance of common stock under stock-based compensation plans | 12,741 | $ 0 | 12,741 | ||
Income tax impact associated with stock option exercises | (481) | (481) | |||
Balance,shares at Dec. 31, 2014 | 34,709 | ||||
Balance at Dec. 31, 2014 | 721,565 | $ 35 | 454,144 | 38 | 267,348 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in unrealized gains and losses on available-for-sale Securities, Net of Tax | (35) | (35) | |||
Change in unrealized gains and losses on derivatives, Net of Tax | 0 | 0 | |||
Net Income | 48,584 | 48,584 | |||
Share-based Compensation expense | 16,813 | 16,813 | |||
Stock Repurchased and Retired During Period, Shares | (3,855) | ||||
Stock Repurchased and Retired During Period, Value | (120,309) | $ (4) | (120,305) | ||
Issuance of common stock under stock-based compensation plans, shares | 1,747 | ||||
Issuance of common stock under stock-based compensation plans | 44,325 | $ 2 | 44,323 | ||
Income tax impact associated with stock option exercises | (2,233) | (2,233) | |||
Balance,shares at Dec. 31, 2015 | 32,601 | ||||
Balance at Dec. 31, 2015 | $ 708,710 | $ 33 | $ 513,047 | $ 3 | $ 195,627 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes Paid | $ 40,273 | $ 38,938 | $ 45,982 |
Cash flows from operating activities: | |||
Net Income | 48,584 | 8,788 | 55,217 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,850 | 35,590 | 32,854 |
Purchase premium amortization/discount accretion on investments, net | (57) | 11 | 1,103 |
Non-cash stock-based compensation | 16,825 | 20,014 | 17,462 |
Income tax impact associated with stock option exercises | (2,233) | (481) | 429 |
Excess tax benefit from stock-based compensation | (759) | (485) | (767) |
Goodwill impairment charges | 0 | 74,196 | 0 |
Intangibles Impairment charges | 0 | 0 | 2,000 |
Deferred income taxes | (710) | (20,261) | (7,927) |
Changes in assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | (14,952) | (9,205) | (10,470) |
Inventories | 9,765 | 1,573 | (46,679) |
Prepaid expenses and other assets | 560 | (7,905) | (4,615) |
Accounts payable | (14,990) | (8,236) | 36,250 |
Accrued employee compensation | 6,280 | 5,037 | (1,787) |
Other accrued liabilities | 29,987 | 2,574 | 15,069 |
Deferred revenue | (2,496) | 5,188 | (1,211) |
Income taxes payable | (1,263) | 2,566 | (26) |
Net cash provided by operating activities | 110,391 | 108,964 | 86,902 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (110,316) | (145,186) | (153,464) |
Proceeds from maturities of short-term investments | 130,273 | 134,827 | 275,406 |
Purchase of property and equipment | (14,000) | (19,338) | (18,050) |
Payments for patents | 0 | 0 | (275) |
Proceeds from sale of cost method investment | 0 | 0 | 3,890 |
Payments made in connection with business acquisitions, net of cash acquired | 0 | (1,050) | (147,240) |
Net cash provided by (used in) investing activities | 5,957 | (30,747) | (39,733) |
Cash flows from financing activities: | |||
Purchase and retirement of treasury stock | (120,309) | (93,218) | (63,585) |
Proceeds from exercise of stock options | 40,928 | 9,979 | 7,487 |
Proceeds from issuance of common stock under employee stock purchase plan | 2,985 | 2,762 | 2,139 |
Excess tax benefit from stock-based compensation | 759 | 485 | 767 |
Net cash used in financing activities | (75,637) | (79,992) | (53,192) |
Net increase (decrease) in cash and cash equivalents | 40,711 | (1,775) | (6,023) |
Cash and cash equivalents, at beginning of period | 141,234 | 143,009 | 149,032 |
Cash and cash equivalents, at end of period | $ 181,945 | $ 141,234 | $ 143,009 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | The Company and Summary of Significant Accounting Policies The Company 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 Company operates in three specific business segments: retail, commercial, and service provider. 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. Each business unit contains leadership focused on the product development efforts, both from a product marketing and engineering standpoint, to service the unique needs of these customer segments. The retail business unit is focused on individual consumers and consists of high performance, dependable and easy-to-use home networking, home video security, storage and digital media products. The commercial business unit is focused on small and medium-sized businesses and consists of business networking, storage and security solutions that bring enterprise class functionality at an affordable price. The service provider business unit is focused on the service provider market and 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 sells networking products through multiple sales channels worldwide, including traditional retailers, online retailers, wholesale distributors, direct market resellers (“DMRs”), value-added resellers (“VARs”), and broadband service providers. Basis of presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in the consolidation of these subsidiaries. Fiscal periods 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 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. Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity at the time of purchase of three months or less to be cash equivalents. The Company deposits cash and cash equivalents with high credit quality financial institutions. Short-term investments Short-term investments are partially comprised of marketable securities that consist of government securities with an original maturity or a remaining maturity at the time of purchase, of greater than three months and no more than 12 months. The marketable securities are held in the Company's name with one high quality financial institution, which acts as the Company's custodian and investment manager. These marketable securities are classified as available-for-sale securities in accordance with the provisions of the authoritative guidance for investments and are carried at fair value with unrealized gains and losses reported as a separate component of stockholders' equity. Short-term investments are also comprised of marketable securities related to deferred compensation under the Company’s Deferred Compensation Plan. Mutual funds are the only investments allowed in the Company's Deferred Compensation Plan and the investments are held in a grantor trust formed by the Company. The Company has classified these investments as trading securities as the grantor trust actively manages the asset allocation to match the participants’ notional fund allocations. These securities are recorded at fair market value with unrealized gains and losses included in other income (expense), net. Certain risks and uncertainties The Company's products are concentrated in the networking industry, which is characterized by rapid technological advances, changes in customer requirements and evolving regulatory requirements and industry standards. The success of the Company depends on management's ability to anticipate and/or to respond quickly and adequately to such changes. Any significant delays in the development or introduction of products could have a material adverse effect on the Company's business and operating results. The Company relies on a limited number of third parties to manufacture all of its products. If any of the Company's third-party manufacturers cannot or will not manufacture its products in required volumes, on a cost-effective basis, in a timely manner, or at all, the Company will have to secure additional manufacturing capacity. Any interruption or delay in manufacturing could have a material adverse effect on the Company's business and operating results. Derivative financial instruments The Company uses foreign currency forward contracts to manage the exposures to foreign exchange risk related to expected future cash flows on certain forecasted revenue, costs of revenue, operating expenses, and on certain existing assets and liabilities. Foreign currency forward contracts generally mature within five months of inception. Under its foreign currency risk management strategy, the Company utilizes derivative instruments to reduce the impact of currency exchange rate movements on the Company's operating results by offsetting gains and losses on the forward contracts with increases or decreases in foreign currency transactions. The company does not use derivative financial instruments for speculative purposes. The Company accounts for its derivative instruments as either assets or liabilities and records them at fair value. Derivatives that are not defined as hedges in the authoritative guidance for derivatives and hedging must be adjusted to fair value through earnings. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income in stockholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in earnings. Concentration of credit risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. The Company believes that there is minimal credit risk associated with the investment of its cash and cash equivalents and short-term investments, due to the restrictions placed on the type of investment that can be entered into under the Company's investment policy. The Company's short-term investments consist of investment-grade securities, and the Company's cash and investments are held and managed by recognized financial institutions. The Company's customers are primarily distributors as well as retailers and broadband service providers who sell or distribute the products to a large group of end-users. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company's customers to make required payments. The Company regularly performs credit evaluations of the Company's customers' financial condition and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks and current economic conditions that may affect customers' ability to pay. The Company does not require collateral from its customers. The Company secures credit insurance for certain customers in international and domestic markets. As of December 31, 2015 and December 31, 2014 , Best Buy, Inc. accounted for 37% and 21% of the Company's total accounts receivable, respectively, and no other customers accounted for 10% or greater of the Company's total accounts receivable. The Company is exposed to credit loss in the event of nonperformance by counterparties to the foreign currency forward contracts used to mitigate the effect of foreign currency exchange rate changes. The Company believes the counterparties for its outstanding contracts are large, financially sound institutions and thus, the Company does not anticipate nonperformance by these counterparties. However, given the recent, unprecedented turbulence in the financial markets, the failure of additional counterparties is possible. Fair value measurements The carrying amounts of the Company's financial instruments, including cash equivalents, short-term investments, accounts receivable, and accounts payable approximate their fair values due to their short maturities. Foreign currency forward contracts are recorded at fair value based on observable market data. See Note 13, Fair Value Measurements, of the Notes to Consolidated Financial Statements for disclosures regarding fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures. Cost method investments The Company's cost method investments are included in other non-current assets in the consolidated balance sheets and are carried at cost, adjusted for any impairment, because the Company does not have a controlling interest and does not have the ability to exercise significant influence over these companies. The Company monitors these investments for impairment on a quarterly basis, and adjusts carrying value for any impairment charges recognized. Realized gains and losses on these investments are reported in other income (expense), net in the consolidated statements of operations. Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company regularly performs credit evaluations of its customers' financial condition and considers factors such as historical experience, credit quality, age of the accounts receivable balances, and geographic or country-specific risks and economic conditions that may affect a customer's ability to pay. The allowance for doubtful accounts is reviewed quarterly and adjusted if necessary based on the Company's assessments of its customers' ability to pay. If the financial condition of the Company's customers should deteriorate or if actual defaults are higher than the Company's historical experience, additional allowances may be required, which could have an adverse impact on operating expenses. Inventories Inventories consist primarily of finished goods which are valued at the lower of cost or market, with cost being determined using the first-in, first-out method. The Company writes down its inventories based on estimated excess and obsolete inventories determined primarily by future demand forecasts. At the point of loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase of the newly established cost basis. Property and equipment, net Property and equipment are stated at historical cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Computer equipment 2 years Furniture and fixtures 5 years Software 2-5 years Machinery and equipment 2-3 years Leasehold improvements Shorter of the lease term or 5 years Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. The carrying value of the asset is reviewed on a regular basis for the existence of facts, both internal and external, that may suggest impairment. Charges related to the impairment of property and equipment were insignificant for the years ended December 31, 2015 , 2014 and 2013 . Goodwill Goodwill represents the purchase price over estimated fair value of net assets of businesses acquired in a business combination. Goodwill acquired in a business combination is not amortized, but instead tested for impairment at least annually on the first day of the fourth quarter. Should certain events or indicators of impairment occur between annual impairment tests, the Company performs the impairment test as those events or indicators occur. Examples of such events or circumstances include the following: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in the business climate; and slower growth rates. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying value. The Company identified the reporting units as retail, commercial and service provider reporting units, as this is the lowest level for which discrete financial information is available and segment management regularly reviews the operating results. The qualitative assessment considers the following factors: macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance, events affecting the reporting units, and changes in the Company's share price. If the reporting unit does not pass the qualitative assessment, the Company estimates its fair value and compares the fair value with the carrying value of its net assets. If the fair value is greater than the carrying value of its net assets, no impairment is recorded. If the fair value is less than its carrying value, the Company would determine the fair value of the goodwill by comparing the implied fair value to the carrying value of the goodwill in the same manner as if the reporting unit were being acquired in a business combination. Specifically, the Company would allocate the fair value to all of its assets and liabilities, including any unrecognized intangibles, in a hypothetical analysis that would calculate the implied fair value of goodwill. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge would be recorded to earnings in the consolidated statements of operations. We did not recognize any goodwill impairment charges during the years ended December 31, 2015 and 2013 and recorded a goodwill impairment charge of $74.2 million which was the entire goodwill balance related to the service provider reporting unit. Intangibles, net Purchased intangibles with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from four to ten years. Finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the fourth quarter of fiscal year 2015, the Company saw a decline in net revenue in the service provider reporting unit. According to its customers, purchase constraints will tighten further in 2016 and for the foreseeable future. Due to the decline in the long-term revenue and profit outlook, the Company performed the recoverability test of the long-lived assets within the service provider reporting unit. The Company estimated the undiscounted future cash flows directly associated with each asset group and compared the amounts to the carrying value of each asset group. Based on the results of the recoverability test, the sum of undiscounted future cash flows was greater than the carrying value of each asset group and therefore no impairment was recorded. The Company also reviewed the depreciation and amortization policies for the long-lived asset groups and ensured the remaining useful lives are appropriate. Purchased intangibles determined to have indefinite useful lives are not amortized. Indefinite-lived intangibles are reviewed for impairment at least annually during the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Measurement of an impairment loss for indefinite-lived assets that management expects to hold and use is based on the fair value of the asset. Indefinite-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. The carrying value of the asset is reviewed on a regular basis for the existence of facts, both internal and external, that may suggest impairment. In the third quarter of 2013, the Company recorded an impairment charge of $2.0 million related to the abandonment of certain IPR&D projects obtained in the AirCard acquisition in 2013. As of the end of the second quarter of 2014, all of the remaining IPR&D had reached technical feasibility and was reclassified to definite-lived intangibles with an estimated useful life of four years. No other impairments to long-lived assets were recognized in the years ended December 31, 2015 , 2014 and 2013 . Warranty obligations The Company provides for estimated future warranty obligations at the time revenue is recognized. The Company's standard warranty obligation to its direct customers generally provides for a right of return of any product for a full refund in the event that such product is not merchantable or is found to be damaged or defective. At the time revenue is recognized, an estimate of future warranty returns is recorded to reduce revenue in the amount of the expected credit or refund to be provided to its direct customers. At the time the Company records the reduction to revenue related to warranty returns, the Company includes within cost of revenue a write-down to reduce the carrying value of such products to net realizable value. The Company's standard warranty obligation to its end-users provides for replacement of a defective product for one or more years. Factors that affect the warranty obligation include product failure rates, material usage, and service delivery costs incurred in correcting product failures. The estimated cost associated with fulfilling the Company's warranty obligation to end-users is recorded in cost of revenue. Because the Company's products are manufactured by third-party manufacturers, in certain cases the Company has recourse to the third-party manufacturer for replacement or credit for the defective products. The Company gives consideration to amounts recoverable from its third-party manufacturers in determining its warranty liability. Revenue recognition Revenue from product sales is generally recognized at the time the product is shipped provided that persuasive evidence of an arrangement exists, title and risk of loss has transferred to the customer, the selling price is fixed or determinable and collection of the related receivable is reasonably assured. Currently, for some of the Company's customers, title passes to the customer upon delivery to the port or country of destination, upon their receipt of the product, or upon the customer's resale of the product. At the end of each fiscal quarter, the Company estimates and defers revenue related to product where title has not transferred. The revenue continues to be deferred until such time that title passes to the customer. The Company assesses collectability based on a number of factors, including general economic and market conditions, past transaction history with the customer, and the creditworthiness of the customer. If the Company determines that collection is not reasonably assured, then revenue is deferred until receipt of the payment from the customer. The Company has product offerings with multiple elements. The Company's multiple-element product offerings include networking hardware with embedded software, various software subscription services, and support, which are considered separate units of accounting. In general, the networking hardware with embedded software is delivered up front, while the subscription services and support are delivered over the subscription and support period. The Company allocates revenue to the software deliverables and the non-software deliverables (including software deliverables which function together with hardware deliverables to provide the product's essential functionality) based upon their relative selling price. Revenue allocated to each unit of accounting is then recognized when persuasive evidence of an arrangement exists, title and risk of loss has transferred to the customer, the selling price is fixed or determinable and collection of the related receivable is reasonably assured. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence ("VSOE") of fair value of the deliverable, or when VSOE of fair value is unavailable, its best estimate of selling price (“ESP”), as the Company has determined it is unable to establish third-party evidence of selling price for the deliverables. In determining VSOE, the Company requires that a substantial majority of the selling prices for a deliverable sold on a stand-alone basis fall within a reasonably narrow pricing range, generally evidenced by approximately 80% of such historical stand-alone transactions falling within +/-15% of the median price. The Company determines ESP for a deliverable by considering multiple factors including, but not limited to, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. The objective of ESP is to determine the price at which the Company would transact a sale if the deliverable were sold on a stand-alone basis. The determination of ESP is made through consultation with and formal approval by the Company's management, taking into consideration the go-to-market strategy. Certain distributors and retailers generally have the right to return product for stock rotation purposes. Upon shipment of the product, the Company reduces revenue for an estimate of potential future product warranty and stock rotation returns related to the current period product revenue. Management analyzes historical returns, channel inventory levels, current economic trends and changes in customer demand for the Company's products when evaluating the adequacy of the allowance for sales returns, namely warranty and stock rotation returns. Revenue on shipments is also reduced for estimated price protection and sales incentives deemed to be contra-revenue under the authoritative guidance for revenue recognition. Sales incentives The Company accrues for sales incentives as a marketing expense if it receives an identifiable benefit in exchange and can reasonably estimate the fair value of the identifiable benefit received; otherwise, it is recorded as a reduction to revenues. As a consequence, the Company records a substantial portion of its channel marketing costs as a reduction of revenue. The Company records estimated reductions to revenues for sales incentives at the later of when the related revenue is recognized or when the program is offered to the customer or end consumer. 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. In cases where the Company gives a freight allowance to the customer for their own inbound freight costs, such costs are appropriately recorded as a reduction in net revenue. Shipping and handling costs associated with outbound freight are included in sales and marketing expenses and totaled $10.4 million , $10.5 million and $11.6 million in the years ended December 31, 2015 , 2014 and 2013 respectively. Research and development Costs incurred in the research and development of new products are charged to expense as incurred. Advertising costs Advertising costs are expensed as incurred. Total advertising and promotional expenses were $19.4 million , $19.1 million , and $18.0 million in the years ended December 31, 2015 , 2014 and 2013 respectively. Income taxes The Company accounts for income taxes under an asset and liability approach. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatment for tax versus accounting for certain items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheet. The Company must then assess the likelihood that the Company's deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. The Company’s assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. In the ordinary course of business there is inherent uncertainty in assessing the Company's income tax positions. The Company assesses its tax positions and records benefits for all years subject to examination based on management's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recorded in the financial statements. Where applicable, associated interest and penalties have also been recognized as a component of income tax expense. Net income per share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the additional dilution from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options and awards. Potentially dilutive shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive. Stock-based compensation The Company measures stock-based compensation at the grant date based on the fair value of the award. The fair value of stock options is estimated using the Black-Scholes option pricing model. Estimated compensation cost relating to restricted stock units (“RSUs”) is based on the closing fair market value of the Company’s common stock on the date of grant. The fair value of Employee Stock Purchase Plan (“ESPP”) is based on the 15% discount at purchase, since the price of the shares is determined at the purchase date. The compensation expense for equity awards is reduced by an estimate for forfeitures and is recognized over the vesting period of the award under a graded vesting method. In addition, the Company will recognize an excess benefit from stock-based compensation in equity based on the difference between tax expense computed with consideration of the windfall deduction and without consideration of the windfall deduction. In addition, the Company accounts for the indirect effects of stock-based compensation on the research tax credit and the foreign tax credit in the income statement. See Note 11, Employee Benefit Plans , of the Notes to Consolidated Financial Statements for a further discussion on stock-based compensation. Comprehensive income Comprehensive income consists of net income and other gains and losses affecting stockholder's equity that the Company excluded from net income, including gains and losses related to fair value of short-term investments and the effective portion of cash flow hedges that were outstanding as of the end of the year. Foreign currency translation and re-measurement The Company's functional currency is the U.S. dollar for all of its international subsidiaries. Foreign currency transactions of international subsidiaries are re-measured into U.S. dollars at the end-of-period exchange rates for monetary assets and liabilities, and historical exchange rates for non-monetary assets. Expenses are re-measured at average exchange rates in effect during each period, except for expenses related to non-monetary assets, which are re-measured at historical exchange rates. Revenue is re-measured at average exchange rates in effect during each period. Gains and losses arising from foreign currency transactions are included in other income (expense), net. 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). The new guidance changes the subsequent measurement of inventory from lower of cost or market to lower of cost and 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 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Arada Systems, Inc. On June 21, 2013 , the Company acquired certain assets and operations of Arada Systems, Inc. (“Arada”), a privately-held company that develops, licenses, and provides solutions for the next generation of uses of Wi-Fi, for total purchase consideration of $5.3 million in cash. The Company believes the acquisition will bolster its wireless product offerings in its commercial business unit and strengthen its position in the small to medium-sized campus wireless LAN market. The Company paid $4.2 million of the aggregate purchase price in the second quarter of 2013, and paid the remaining $1.1 million in the second quarter of 2014. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. The results of Arada have been included in the consolidated financial statements since the date of acquisition. Pro forma results of operations for the acquisition are not presented as the financial impact to the Company's consolidated results of operations is not material. The allocation of the purchase price was as follows (in thousands): Property and equipment, net $ 15 Intangibles, net 4,040 Goodwill 1,195 Total purchase price $ 5,250 Of the $1.2 million of goodwill recorded on the acquisition of Arada, approximately $0.7 million and $1.2 million are deductible for U.S. federal and state income tax purposes, respectively. The goodwill recognized, which was assigned to the Company's commercial business unit, is primarily attributable to expected synergies resulting from the acquisition. The Company designated $4.0 million of the acquired intangibles as technology. The value was calculated based on the present value of the future estimated cash flows derived from estimated savings attributable to the existing technology and discounted at 21.5% . The acquired existing technology is being amortized over an estimated useful life of five years . AirCard Division of Sierra Wireless, Inc. On April 2, 2013 , the Company completed the acquisition of select assets and operations of the Sierra Wireless, Inc. AirCard business ("AirCard"), including customer relationships, a world-class LTE engineering team, certain intellectual property, inventory and property and equipment. The Company believes this acquisition will accelerate the mobile initiative of the service provider business unit to become a global leader in providing the latest in LTE data networking access devices. The Company paid $140.0 million of the aggregate purchase price in the second quarter of 2013. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. The results of AirCard have been included in the consolidated financial statements since the date of acquisition. Revenue and earnings for AirCard as of the acquisition date are not presented as the business was fully integrated into the service provider business unit subsequent to the acquisition and therefore impracticable for the Company to quantify. The allocation of the purchase price was as follows (in thousands): Inventories $ 2,874 Prepaid expenses and other current assets 12,256 Property and equipment, net 7,455 Intangibles, net 69,700 Goodwill 53,841 Liabilities assumed (6,096 ) Total purchase price $ 140,030 In the third quarter of 2013, the Company made an adjustment of $0.5 million to goodwill related to revised inventory estimates. Of the $53.8 million of goodwill recorded on the acquisition of AirCard, approximately $35.8 million , $53.8 million and $2.3 million is deductible for U.S. federal, U.S. state and Canadian income tax purposes, respectively. The goodwill recognized, which was assigned to the Company's service provider business unit, is primarily attributable to expected synergies resulting from the acquisition. The Company designated $16.3 million of the acquired intangibles as technology. The value was calculated based on the present value of the future estimated cash flows derived from estimated savings attributable to the existing technology and discounted at 10.0% . The acquired technology is being amortized over an estimated useful life of four years . The Company designated $40.5 million of the acquired intangibles as customer relationships. The value was calculated based on the present value of the future estimated cash flows derived from projections of future operations attributable to existing customer relationships and discounted at 12.0% . The acquired customer relationships are being amortized over an estimated useful life of eight years The Company designated $2.3 million of the acquired intangibles as non-compete agreements. The value was calculated based on the present value of the future estimated cash flows derived from projections of future operations attributable to the non-compete agreements and discounted at 12.0% . The acquired agreements are being amortized over an estimated useful life of five years . The Company designated $1.1 million of the acquired intangibles as backlog. The value was calculated based on the present value of the future contractual revenue and discounted at 10.0% . The acquired backlog was fully amortized in the second quarter of 2013. The Company acquired $9.5 million in in-process research and development (“IPR&D”) projects. The value was calculated based on the present value of future estimated cash flows discounted at 13.0% , derived from projections of future revenues attributable to the assets, expected economic life of the assets, and royalty rates. IPR&D acquired is considered indefinite lived intangibles until research and development efforts associated with the projects are completed or abandoned. The most significant of the acquired IPR&D projects relate to multimode LTE technologies, Mobile Hot Spot, USB dongle, and Module form factors. During the third quarter of 2013, the Company recorded an intangibles impairment charge of $2.0 million related to the abandonment of certain IPR&D projects previously acquired. As of the end of the second quarter of 2014, $7.5 million of the acquired IPR&D had reached technical feasibility and was reclassified to definite-lived intangibles and with an estimated useful life of four years. Pro forma financial information The unaudited pro forma financial information in the table below summarizes the combined results of our operations and those of AirCard for the periods shown as though the acquisition of AirCard occurred as of the beginning of the fiscal year 2012. The pro forma financial information for the periods presented includes the accounting effects of the business combination, including adjustments to the amortization of intangibles, fair value of acquired inventory, acquisition-related costs, integration expenses and related tax effects of these adjustments, where applicable. This information is for informational purposes only, is subject to a number of estimates, assumptions and other uncertainties, and may not be indicative of the results of operations that would have been achieved if the acquisition had taken place at January 1, 2012. The unaudited pro forma financial information is as follows (in thousands): Year Ended December 31, 2013 (in millions) Net revenue $ 1,415 Net income $ 57 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components (in thousands) Available-for-sale short-term investments As of December 31, 2015 December 31, 2014 Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cost Unrealized Gain Unrealized Loss Estimated Fair Value U.S. treasuries $ 95,057 $ 1 $ (65 ) $ 94,993 $ 114,944 $ 6 $ (15 ) $ 114,935 Certificates of deposits 147 — — 147 158 — — 158 Total $ 95,204 $ 1 $ (65 ) $ 95,140 $ 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 twelve months . Accordingly, none of the available-for-sale securities have unrealized losses greater than 12 months. Cost method investments The carrying value of the Company's cost method investments was $0.1 million and $1.3 million for the years ended December 31, 2015 and December 31, 2014 . These investments are included in other non-current assets in the consolidated balance sheets and are carried at cost, adjusted for any impairment, because the Company does not have a controlling interest and does not have the ability to exercise significant influence over these companies. The Company monitors these investments for impairment on a quarterly basis, and adjusts carrying value for any impairment charges recognized. There were no impairments recognized in the years ended December 31, 2015 , December 31, 2014 and December 31, 2013 . Realized gains and losses on these investments are reported in other income (expense), net in the consolidated statements of operations. No material gains or losses were recorded in the years ended December 31, 2015 , 2014 and 2013 . Accounts receivable, net As of December 31, 2015 December 31, 2014 Gross accounts receivable $ 309,926 $ 296,239 Allowance for doubtful accounts (1,255 ) (1,255 ) Allowance for sales returns (15,904 ) (17,489 ) Allowance for price protection (2,125 ) (1,806 ) Total allowances (19,284 ) (20,550 ) Total accounts receivable, net $ 290,642 $ 275,689 Inventories As of December 31, 2015 December 31, 2014 Raw materials $ 4,292 $ 3,625 Work-in-process 2 8 Finished goods 208,824 219,250 Total inventories $ 213,118 $ 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 As of December 31, 2015 December 31, 2014 Computer equipment $ 11,161 $ 9,779 Furniture, fixtures and leasehold improvements 18,317 19,379 Software 30,396 29,294 Machinery and equipment 66,662 60,135 Total property and equipment, gross 126,536 118,587 Accumulated depreciation and amortization (104,152 ) (88,893 ) Total property and equipment, net $ 22,384 $ 29,694 Depreciation and amortization expense pertaining to property and equipment was $18.1 million , $17.6 million and $17.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Intangibles, net The following tables present details of the Company’s purchased intangibles: Gross Accumulated Amortization Net December 31, 2015 Technology $ 61,099 $ (48,485 ) $ 12,614 Customer contracts and relationships 56,500 (23,290 ) 33,210 Other 10,545 (7,422 ) 3,123 Total intangibles, net 128,144 (79,197 ) 48,947 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 purchased intangibles in the years ended December 31, 2015 , 2014 and 2013 was $17.3 million , $17.9 million and $15.5 million , respectively. In the year ended December 31, 2013, the Company recorded an impairment charge of $2.0 million due to the abandonment of IPR&D acquired as part of the AirCard acquisition. No impairment charges were recorded in the years ended December 31, 2015 and 2014 . Estimated amortization expense related to finite-lived intangibles for each of the next five years and thereafter is as follows: Year Ended December 31, Amount 2016 $ 16,921 2017 11,386 2018 7,871 2019 6,028 2020 5,316 Thereafter 1,425 Total expected amortization expense $ 48,947 Goodwill The changes in the carrying amount of goodwill during the years ended December 31, 2015 and 2014 are as follows: Retail Commercial Service Provider Total Goodwill at December 31, 2013 $ 45,442 $ 36,279 $ 74,196 $ 155,916 Goodwill impairment charges — — (74,196 ) (74,196 ) Goodwill at December 31, 2014 45,442 $ 36,279 — 81,721 Goodwill impairment charges — — — — Goodwill at December 31, 2015 $ 45,442 $ 36,279 $ — $ 81,721 In the fourth fiscal quarter of 2015, the Company completed the annual impairment test of goodwill. The test was performed as of the first day of the fourth quarter. The Company performed a qualitative test for goodwill impairment of the retail and commercial reporting units as of September 28, 2015. Based upon the results of the qualitative testing, the respective fair values of the retail and commercial reporting units were substantially in excess of these reporting units’ carrying values. The Company believes it is more-likely-than-not that the fair value of these reporting units are greater than their respective carrying values and therefore performing the first step of the two-step impairment test for the retail and commercial reporting units was unnecessary. No goodwill impairment was recognized for the retail and commercial reporting units in the years ended December 31, 2015, 2014 or 2013. In the fourth quarter of fiscal year 2014, the Company recorded a goodwill impairment charge of $74.2 million related to the service provider reporting unit in the year ended December 31, 2014. There were no impairments to goodwill in the years ended December 31, 2015 and 2013 . Accumulated goodwill impairment charges for the years ended December 31, 2015 and 2014, was $74.2 million and $74.2 million , respectively. Other non-current assets As of December 31, 2015 December 31, 2014 Non-current deferred income taxes $ 68,445 * $ 38,696 Cost method investments 105 1,322 Other 7,824 8,059 Total other non-current assets $ 76,374 $ 48,077 * Includes a reclassification of the net current deferred tax asset to the net non-current deferred tax asset in the consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. Refer to Note 1, The Company and Summary of Significant Accounting Policies , for additional information regarding the early adoption of the ASU 2015-17. Other accrued liabilities As of December 31, 2015 December 31, 2014 Sales and marketing programs $ 69,693 $ 54,582 Warranty obligation 56,706 44,888 Freight 5,748 6,827 Other 34,135 37,445 Total other accrued liabilities $ 166,282 $ 143,742 |
Restructuring and Other Charges
Restructuring and Other Charges (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Other Charges [Abstract] | |
Restructruring and Other Charges [Text Block] | Restructuring and Other Charges The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. The Company presents expenses related to restructuring and other charges as a separate line item in its consolidated statements of operations. During the year ended December 31, 2015 , the Company incurred restructuring and other charges of $6.4 million . Restructuring charges recognized are primarily related to contract and employee termination charges, as well as other activities attributable to the restructuring actions announced in February 2015. During the year ended December 31, 2014 , the Company incurred restructuring charges of $2.2 million . The Company recognized a charge of $1.4 million relating primarily to expenses associated with the early termination of a lease agreement in Canada and $0.8 million relating to one-time separation costs, primarily relating to the departure of the general manager of the retail business unit in the first quarter of 2014. The following tables provide a summary of accrued restructuring and other charges activity for the years ended December 31, 2015 and 2014: Restructuring Acquisition transition costs Total (in thousands) Balance at December 31, 2013 $ 1,013 $ 10 $ 1,023 Additions 2,228 6 2,234 Cash payments (2,901 ) (16 ) (2,917 ) Adjustments (24 ) — (24 ) Balance at December 31, 2014 316 — 316 Additions (a) 5,946 — 5,946 Cash payments (5,736 ) — (5,736 ) Balance at December 31, 2015 $ 526 $ — $ 526 (a) Total restructuring and other charges recognized in the Company's consolidated statement of operations for the year ended December 31, 2015 includes non-cash charges and adjustments, net of $0.5 million . These amounts have been excluded from the table above. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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, Canadian dollar, 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 consolidated statement of operations. The fair values of the Company’s derivative instruments and the line items on the consolidated balance sheet to which they were recorded as of December 31, 2015 , and December 31, 2014 , are summarized as follows (in thousands): Derivative Assets Balance Sheet Location Fair value at December 31, 2015 Balance Sheet Location Fair value at December 31, 2014 Derivative assets not designated as hedging instruments Prepaid expenses and other current assets $ 3,203 Prepaid expenses and other current assets $ 2,416 Derivative assets designated as hedging instruments Prepaid expenses and other current assets 2 Prepaid expenses and other current assets — Total $ 3,205 $ 2,416 Derivative Liabilities Balance Sheet Location Fair value at December 31, 2015 Balance Sheet Location Fair value at December 31, 2014 Derivative liabilities not designated as hedging instruments Other accrued liabilities $ 447 Other accrued liabilities $ 409 Derivative liabilities designated as hedging instruments Other accrued liabilities 4 Other accrued liabilities 38 Total $ 451 $ 447 For details of the Company’s fair value measurements, see Note 13, 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 consolidated balance sheets. The following tables set forth the offsetting of derivative assets as of December 31, 2015 and December 31, 2014 (in thousands): As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 577 $ — $ 577 $ (56 ) $ — $ 521 Wells Fargo 2,628 — 2,628 (395 ) — 2,233 Total $ 3,205 $ — $ 3,205 $ (451 ) $ — $ 2,754 As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Assets Presented in the 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 December 31, 2015 and December 31, 2014 (in thousands): As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 56 $ — $ 56 $ (56 ) $ — $ — Wells Fargo 395 — 395 (395 ) — — Total $ 451 $ — $ 451 $ (451 ) $ — $ — As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the 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 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 12 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 associated with such derivative instruments are reclassified immediately into earnings through other income and expense. Any subsequent changes in the fair value of such derivative instruments 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 on discontinued cash flow hedges during the years ended December 31, 2015 , 2014 and 2013 . The effects of the Company’s derivative instruments on OCI and the consolidated statement of operations for the years ended December 31, 2015 , 2014 and 2013 are summarized as follows (in thousands): Derivatives Designated as Hedging Instruments Year Ended December 31, 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 $ 453 Net revenue $ 462 Other income (expense), net $ (52 ) Foreign currency forward contracts — Cost of revenue 6 Other income (expense), net — Foreign currency forward contracts — Operating expenses (15 ) Other income (expense), net — Total $ 453 $ 453 $ (52 ) Derivatives Designated as Hedging Instruments Year Ended December 31, 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 $ 292 Net revenue $ 459 Other income (expense), net $ (144 ) Foreign currency forward contracts — Cost of revenue 4 Other income (expense), net — Foreign currency forward contracts — Operating expenses (149 ) Other income (expense), net — Total $ 292 $ 314 $ (144 ) Derivatives Designated as Hedging Instruments Year Ended December 31, 2013 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 $ 775 Net revenue $ 844 Other income (expense), net $ (117 ) Foreign currency forward contracts — Cost of revenue (9 ) Other income (expense), net — Foreign currency forward contracts — Operating expenses (149 ) Other income (expense), net — Total $ 775 $ 686 $ (117 ) (a) Refer to Note 10, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. 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 years ended December 31, 2015 , 2014 and 2013 . 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 million USD equivalent and these hedges normally range from one to five months in duration. The effects of the Company’s derivatives not designated as hedging instruments in other income (expense), net in the consolidated statements of operations for the years ended December 31, 2015 , 2014 and 2013 , 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 on Derivative Year ended December 31, 2015 2014 2013 Foreign currency forward contracts Other income (expense), net 4,956 4,897 $ 458 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2015 , 2014 and 2013 are as follows (in thousands, except per share data): Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Numerator: Net income $ 48,584 $ 8,788 $ 55,217 Denominator: Weighted average common shares - basic 33,161 35,771 38,379 Potentially dilutive common share equivalent 627 674 569 Weighted average common shares - dilutive 33,788 36,445 38,948 Basic net income per share $ 1.47 $ 0.25 $ 1.44 Diluted net income per share $ 1.44 $ 0.24 $ 1.42 Anti-dilutive employee stock-based awards, excluded 1,807 2,617 2,846 |
Other Income (Expense), Net (No
Other Income (Expense), Net (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Income (Expense), Net Other income (expense), net consisted of the following (in thousands): Year Ended December 31, 2015 2014 2013 Foreign currency transaction loss, net $ (5,114 ) $ (5,642 ) $ (1,592 ) Foreign currency contract gain, net 4,904 4,753 341 Gain on litigation settlements — 2,800 — Other 122 544 794 Total $ (88 ) $ 2,455 $ (457 ) |
Income Taxes Income Taxes (Note
Income Taxes Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income before income taxes consists of the following (in thousands): Year Ended December 31, 2015 2014 2013 United States $ 88,681 $ 25,152 $ 91,318 International (3,117 ) 5,609 1,664 Total $ 85,564 $ 30,761 $ 92,982 Year Ended December 31, 2015 2014 2013 Current: U.S. Federal $ 30,970 $ 29,089 $ 30,989 State 3,139 2,873 3,751 Foreign 6,105 10,930 11,224 40,214 42,892 45,964 Deferred: U.S. Federal (2,645 ) (20,347 ) (6,741 ) State 134 (326 ) (1,164 ) Foreign (723 ) (246 ) (294 ) (3,234 ) (20,919 ) (8,199 ) Total $ 36,980 $ 21,973 $ 37,765 Net deferred tax assets consist of the following (in thousands): Year Ended December 31, 2015 2014 Deferred Tax Assets: Accruals and allowances $ 29,279 $ 25,756 Net operating loss carryforwards 5,353 6,210 Stock-based compensation 9,895 12,416 Deferred rent 2,740 2,137 Deferred revenue 1,185 1,654 Tax credit carryforwards 2,262 1,769 Acquired intangibles 22,778 21,916 Other — 142 Total deferred tax assets 73,492 72,000 Deferred Tax Liabilities: Depreciation and amortization (967 ) (1,245 ) Other (438 ) — Total deferred tax liabilities (1,405 ) (1,245 ) Valuation Allowance**: (3,642 ) (3,020 ) Net deferred tax assets $ 68,445 $ 67,735 Current portion $ — $ 29,039 Non-current portion 68,445 * 38,696 Net deferred tax assets $ 68,445 $ 67,735 * This includes a reclassification of the net current deferred tax asset to the net non-current deferred tax asset in the consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. Refer to Note 1, The Company and Summary of Significant Accounting Policies , for additional information regarding the early adoption of the ASU 2015-17. ** Valuation allowance is presented gross. The valuation allowance net of the federal tax effect is ($2,367) and ($1,963) for the years ended December 31, 2015 and December 31, 2014, respectively. Management's judgment is required in determining the Company's provision for income taxes, its deferred tax assets and any valuation allowance recorded against its deferred tax assets. As of December 31, 2015, a valuation allowance of $3.6 million was placed against California deferred tax assets since the recovery of the assets is uncertain. There was a valuation allowance of $3.0 million placed against deferred tax assets as of December 31, 2014. Accordingly, the valuation allowance increased $0.6 million during 2015. In management's judgment it is more likely than not that the remaining deferred tax assets will be realized in the future as of December 31, 2015 , and as such no valuation allowance has been recorded against the remaining deferred tax assets. The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows: Year Ended December 31, 2015 2014 2013 Tax at federal statutory rate 35.0 % 35.0 % 35.0 % State, net of federal benefit 2.6 % 2.5 % 2.2 % Impact of international operations 7.1 % 19.8 % 3.9 % Stock-based compensation (0.4 )% 5.5 % 1.8 % Tax credits (1.2 )% (3.8 )% (1.9 )% Valuation allowance — % 3.5 % — % Goodwill impairment — % 7.8 % — % Others 0.1 % 1.1 % (0.4 )% Provision for income taxes 43.2 % 71.4 % 40.6 % Income tax benefits (detriments) in the amount of $(2.2) million , $(0.5) million and $0.4 million related to stock options were credited to additional paid-in capital during the years ended December 31, 2015 , 2014 , and 2013 , respectively. As a result of changes in fair value of available for sale securities, income tax benefit of $21,000 , $5,000 and $16,000 were recorded in comprehensive income related to the years ended December 31, 2015 , 2014 , and 2013 , respectively. As of December 31, 2015 , the Company has approximately $15.3 million and $50,000 of acquired federal and state net operating loss carry forwards as well as $2.3 million of California tax credits carryforwards. All of these losses are subject to annual usage limitations under Internal Revenue Code Section 382. The federal losses expire in different years beginning in fiscal 2021 . The state loss begins to expire in fiscal 2017 . The state tax credit carryforwards have no expiration. The Company files income tax returns in the U.S. federal jurisdiction and various state, local, and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years before 2009. The Company is no longer subject to foreign income tax examinations before 2004. In November 2012, the Italian Tax Authority (ITA) commenced an audit of the Company’s 2004 through 2011 tax years, and has subsequently extended audit procedures to include the 2012 tax year. The Company is currently in litigation with the ITA with respect to all of these years. In April 2015, the German Tax Authority commenced an examination of the Company’s 2008 and 2013 tax years. The examination is ongoing. The Company has limited audit activity in various states and other 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 12 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 12 months is approximately $0.6 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UTB”) is as follows (in thousands): Federal, State, and Foreign Tax Gross UTB Balance at December 31, 2012 $ 12,339 Additions based on tax positions related to the current year 1,866 Additions for tax positions of prior years 4,106 Settlements (3,134 ) Reductions for tax positions of prior years (1,163 ) Reductions due to lapse of applicable statutes (1,314 ) Adjustments due to foreign exchange rate movement 43 Gross UTB Balance at December 31, 2013 12,743 Additions based on tax positions related to the current year 1,894 Additions for tax positions of prior years 1,722 Settlements (503 ) Reductions for tax positions of prior years (152 ) Reductions due to lapse of applicable statutes (1,838 ) Adjustments due to foreign exchange rate movement (502 ) Gross UTB Balance at December 31, 2014 $ 13,364 Additions based on tax positions related to the current year 1,608 Additions for tax positions of prior years 228 Settlements (199 ) Reductions for tax positions of prior years (302 ) Reductions due to lapse of applicable statutes (1,053 ) Adjustments due to foreign exchange rate movement (816 ) Gross UTB Balance at December 31, 2015 12,830 The total amount of net UTB that, if recognized would affect the effective tax rate as of December 31, 2015 is $11.3 million . The ending net UTB results from adjusting the gross balance at December 31, 2015 for items such as U.S. federal and state deferred tax, foreign tax credits, interest, and deductible taxes. The net UTB is included as a component of non-current income taxes payable within the consolidated balance sheet. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2015 , 2014 , and 2013 , total interest and penalties expensed were $0.1 million , $1.1 million and $0.4 million , respectively. As of December 31, 2015 and 2014 , accrued interest and penalties on a gross basis was $3.1 million and $3.0 million , respectively. Included in accrued interest are amounts related to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. With the exception of those foreign sales subsidiaries for which deferred tax has been provided, the Company intends to indefinitely reinvest foreign earnings. These earnings were approximately $136.9 million and $78.3 million as of December 31, 2015 and December 31, 2014 , respectively. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Leases The Company leases office space, cars and equipment under non-cancelable operating leases with various expiration dates through December 2026 . Rent expense in the years ended, December 31, 2015 , 2014 , and 2013 was $9.8 million , $10.8 million and $9.9 million , respectively. 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. Future minimum lease payments under non-cancelable operating leases are as follows (in thousands): Year Ending December 31, 2016 $ 8,429 2017 5,761 2018 5,598 2019 5,342 2020 5,404 Thereafter 23,209 Total minimum lease payments $ 53,743 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 December 31, 2015 . 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 December 31, 2015 , the Company had approximately $133 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 obligations Changes in the Company's warranty liability, which is included as a component of “Other accrued liabilities” in the consolidated balance sheets, are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Balance at the beginning of the year $ 44,888 $ 48,754 $ 46,659 Provision for warranty obligations made during the year 80,085 62,709 69,755 Settlements made during the year (68,267 ) (66,575 ) (67,660 ) Balance at the end of year $ 56,706 $ 44,888 $ 48,754 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 limits its exposure and 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 December 31, 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 of patents, trademarks or copyrights of third parties. The terms of these indemnification agreements are generally perpetual any time after execution of the agreement. The maximum amount of potential future indemnification is 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 December 31, 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 June 8, 2011, Ericsson filed an amended complaint that added Dell, Toshiba and Belkin as defendants. At the status conference held on June 9, 2011, the Court set a Markman (claim construction) hearing for June 28, 2012 and trial for June 3, 2013. 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. 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. 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 equated to 15 cent s per unit for each accused 802.11 device sold by each defendant ( 5 cent per patent). On December 16, 2013, the Company and 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. 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. 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, August 2015, and December 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, the 2008 through 2010 tax years, and the 2011 through 2012 tax years, respectively. 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 for suspension was held and the Request for Suspension of payment was granted. The hearing for the validity of the tax assessment was held in December 2015 and we are awaiting a decision from the court. With respect to 2008 through 2010, the Company filed its briefs with the Tax Court in October 2015. With respect to 2011 through 2012, the Company plans to file its briefs with the Tax Court to contest this assessment. 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 learned that Amazon and Blizzard filed petitions for the inter partes reviews (“IPRs”) for the patents in suit. On October 30, 2015, the Company and Via Vadis filed a joint stipulation requesting that the Court vacate all deadlines and enter a stay of all proceedings in the case pending the Patent Trial and Appeal Board’s final non-appealable decision on the IPRs initiated by Amazon and Blizzard. On November 2, 2015 the Court granted the requested stay. 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. In November 2015, Wetro Lan filed a notice requesting a scheduling conference from which deadlines in the case arise. On January 29, 2016, the Court issued an order consolidating twenty Wetro Lan cases, including the case against the Company for all pretrial issues, except for venue. In the lead case, Wetro Lan v. ADTRAN (No. 2:15-cv-00041), the Court has not yet issued any docket control order or set any scheduling conference. The Court also 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 noninfringement 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 were submitted on November 25, 2015. Frequency Systems granted RPX Corporation members a license sometime in the fall of 2015. This was significant because the Company’s products that use WiFi chipsets of licensed companies (i.e. companies that are RPX members) became licensed to the ‘205 Patent, and essentially all of the Company’s WiFi chip providers are licensed to the ‘205 patent through their RPX membership. Accordingly, on November 23, 2015, Frequency Systems submitted an unopposed motion to dismiss its claims for relief against the Company without prejudice and with all attorneys’ fees, costs of Court, and expenses borne by the party incurring same. On December 14, 2015, the Court ordered that Frequency Systems’ claims for relief against the Company be dismissed without prejudice. There was no material 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 were submitted on November 25, 2015. The Company served its initial disclosures on October 21, 2015, and the Company’s invalidity contentions were served on November 25, 2015. Without admitting any wrongdoing or violation of law and to avoid the distraction and expense of continued litigation and the uncertainty of a jury verdict on the merits, on January 7, 2016, the Company and Verifire settled the lawsuit for a one-time payment from the Company to Verifire in return for a perpetual, worldwide, and fully-paid-up license from Verifire to the Company to all of Verifire’s currently-held patents. The Court dismissed the case with prejudice on January 26, 2016. The settlement did not have a material financial impact to the Company. 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. Chrimar filed an Amended Complaint on December 23, 2015 to address the deficiencies in Chrimar’s complaint pointed out by the Company’s Motion to Dismiss the Direct Infringement Claims Relating to the ‘760 Patent, and the Company filed its Answer to the Amended Complaint on January 10, 2016. On November 24, 2015, Chrimar served its infringement contentions on the Company, and Chrimar is generally attempting to assert that the patents in suit cover the Power over Ethernet standard (802.3af and 802.3at) used by certain of NETGEAR’s products. On December 3, 2015, the Company filed with the Court a motion to transfer venue to the District Court for the Northern District of California and their memorandum of law in support thereof. On December 23, 2015, Chrimar filed its response to the Company’s motion to transfer, and, on January 8, 2016, the Company filed its reply brief in support of its motion to transfer venue. On January 15, 2016, the Court granted the Company’s motion to transfer venue to the District Court for the Northern District of California. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Wi3, INC. v. NETGEAR, Inc. On November 12, 2015, a lawsuit was filed against the Company by a company called Wi3, INC. (“Wi3”) in the United States District Court, Western District of New York. The patent No. 6,108,331 (the “'331 Patent”) is entitled “Single Medium Wiring Scheme for Multiple Signal Distribution in Building and Access Port Therefor,” and was filed in 1998, and should expire in July 2018. The complaint alleges direct and indirect infringement, and accuses NETGEAR’s MoCA Network Adapters and/or Network Extenders (including at least model MCA1001 v2) of infringing at least claims 26, 27, 29, and 30. The complaint alleges no pre-suit knowledge of the patent, but seeks enhanced damages. The patent has been asserted in three prior cases, and all three cases were resolved in the early stages. The Company has received an extension until March 11, 2016 to answer the Complaint. 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 European Union (“EU”) enacted the Waste Electrical and Electronic Equipment Directive, which makes producers of electrical goods, including home and commercial business networking products, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products. The deadline for the individual member states of the EU to transpose the directive into law in their respective countries was August 13, 2004 (such legislation, together with the directive, the “WEEE Legislation”). Producers participating in the market were financially responsible for implementing these responsibilities under the WEEE Legislation beginning in August 13, 2005. The Company adopted the authoritative guidance for asset retirement and environmental obligations in the third quarter of fiscal 2005 and has determined that its effect did not have a material impact on the Company's consolidated results of operations and financial position. The WEEE Directive was recast on July 24, 2012, published on August 13, 2012, and was implemented by all member states on February 14, 2014. The Company has determined that its effect did not have material impact on its consolidated results of operations and financial positions due to this recasting. Similar WEEE Legislation has been or may be enacted in other jurisdictions, including in the United States, Canada, Mexico, China, India, Australia and Japan. The Company continues to monitor WEEE Legislation and similar legislation in other jurisdictions as individual countries issue their implementation guidance. The Company believes it has met the applicable requirements of current WEEE Legislation and similar legislation in other jurisdictions, to the extent implementation requirements has been published. Additionally, the EU enacted the Restriction of Hazardous Substances Directive (“RoHS Legislation”), the REACH Regulation, Packaging Directive and the Battery Directive. EU RoHS Legislation, along with similar legislation in China, requires manufacturers to ensure certain substances, including polybrominated biphenyls (“PBD”), polybrominated diphenyl ethers (“PBDE”), mercury, cadmium, hexavalent chromium and lead (except for allowed exempted materials and applications), are below specified maximum concentration values in certain products put on the market after July 1, 2006. The RoHS Directive was recast on July 21, 2011 and went into force on January 3, 2013. The Company has determined that its effect did not have material impact on its consolidated result |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock Repurchase Programs On October 21, 2008, October 17, 2014 and July 21, 2015, the Company’s Board of Directors authorized management to repurchase up to 6.0 million , 3.0 million and 3.0 million shares of the Company’s outstanding common stock, respectively, which, at the time of authorization, were incremental to the remaining shares under the share repurchase programs. Under the authorizations, the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. 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. As of December 31, 2015, both share repurchase programs authorized prior to July 2015 have been completed and there were 2.2 million shares remaining in the Company's buyback program. The Company repurchased, reported based on trade date, approximately 3.8 million shares of common stock at a cost of $117.7 million during the year ended December 31, 2015 . During the years ended December 31, 2014 and December 31, 2013 , the Company repurchased and retired, reported based on trade date, approximately 2.8 million shares of common stock at a cost of $90.6 million and approximately 2.0 million shares of common stock at a cost of $63.1 million , respectively. The Company repurchased, as reported based on trade date, approximately 85,000 shares of common stock at a cost of $2.6 million , under a repurchase program to help administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving RSUs during the year ended December 31, 2015 . Similarly, during the years ended December 31, 2014 and December 31, 2013 , the Company repurchased approximately 82,000 shares of common stock at a cost of $2.6 million and 14,000 shares of common stock at a cost of $0.5 million , respectively, under the same program to help facilitate tax withholding for RSUs. These shares were retired upon repurchase. 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 (Loss) The following table sets forth the changes in accumulated other comprehensive income by component, net of tax, during the years ended December 31, 2015 , 2014 and 2013 (in thousands): Gains and losses on available for sale securities Gains and losses on derivatives Total Balance as of December 31, 2012 $ 28 $ (24 ) $ 4 Other comprehensive income (loss) before reclassifications (24 ) 775 751 Amounts reclassified from accumulated other comprehensive loss — (686 ) (686 ) Net current period other comprehensive income (loss) (24 ) 89 65 Balance as of December 31, 2013 $ 4 $ 65 $ 69 Other comprehensive income (loss) before reclassifications (9 ) 292 283 Amounts reclassified from accumulated other comprehensive loss — (314 ) (314 ) Net current period other comprehensive loss (9 ) (22 ) (31 ) Balance as of December 31, 2014 $ (5 ) $ 43 $ 38 Other comprehensive income before reclassifications (35 ) 453 418 Amounts reclassified from accumulated other comprehensive loss — (453 ) (453 ) Net current period other comprehensive income (35 ) — (35 ) Balance as of December 31, 2015 $ (40 ) $ 43 $ 3 The following tables provide details about significant amounts reclassified out of each component of accumulated other comprehensive income for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Details about Accumulated Other Comprehensive Income Components Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Amount Reclassified from AOCI Affected Line Item in the Statement of Operations 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 $ 462 Net revenue $ 459 Net revenue $ 844 Net revenue Foreign currency forward contracts 6 Cost of revenue 4 Cost of revenue (9 ) Cost of revenue Foreign currency forward contracts (15 ) Operating expenses (149 ) Operating expenses (149 ) Operating expenses 453 Total before tax 314 Total before tax 686 Total before tax — Tax expense (1) — Tax expense (1) — Tax expense (1) $ 453 Total, net of tax $ 314 Total, net of tax $ 686 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 (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 2000 Stock Option Plan In April 2000, the Company adopted the 2000 Stock Option Plan (the “2000 Plan”). The 2000 Plan provided for the granting of stock options to employees and consultants of the Company. Upon the Company's initial public offering in 2003, the 2000 Plan was terminated and all shares that remained reserved but not issued under the 2000 Plan at the time of its termination were transferred to the 2003 Plan. No further equity awards can be granted under the 2000 Plan. Outstanding awards under the 2000 Stock Plan remain subject to the terms and conditions of the 2000 Plan. 2003 Stock Plan In April 2003, the Company adopted the 2003 Stock Plan (the “2003 Plan”). The 2003 Plan provided for the granting of stock options to employees and consultants of the Company. During the second quarter of 2013, the Company's 2003 Stock Plan expired. No further equity awards can be granted under the 2003 Plan. Outstanding awards under the 2003 Stock Plan remain subject to the terms and conditions of the 2003 plan. 2006 Long Term Incentive Plan In April 2006, the Company adopted the 2006 Long Term Incentive Plan (the “2006 Plan”). The 2006 Plan provides for the granting of stock options, stock appreciation rights, restricted stock, performance awards and other stock awards, to eligible directors, employees and consultants of the Company. Upon adoption of the 2006 Plan, the Company reserved 2,500,000 shares of common stock for issuance. During the period from 2008 to 2014, the Company adopted amendments which increased the number of shares of the Company’s common stock that may be issued under the 2006 Plan by an additional 8.5 million shares. In addition, RSUs granted under the 2006 Plan on or after June 6, 2012 are counted against shares authorized under the plan as 1.58 shares of common stock for each share subject to such award. As of December 31, 2015 , approximately 1.5 million shares were reserved for future grants under the 2006 Plan. Options granted under the 2006 Plan may be either incentive stock options ("ISOs") or nonqualified stock options ("NSOs"). ISOs may be granted only to Company employees (including officers and directors who are also employees). NSOs may be granted to Company employees, directors and consultants. Options granted generally are exercisable up to ten years provided, however, that (i) the exercise price of the ISO or NSO is not less than the estimated fair value of the underlying stock on the date of grant and (ii) the exercise price of the ISO or NSO granted to a 10% shareholder is not less than 110% of the estimated fair value of the underlying stock on the date of grant. Options granted under the 2006 Plan generally vest over four years , with the first tranche vesting at the end of 12 months and the remaining shares underlying the option vesting monthly over the remaining three years . Stock appreciation rights may be granted under the 2006 Plan subject to the terms specified by the plan administrator, provided that the term of any such right may not exceed ten (10) years from the date of grant. The exercise price generally cannot be less than the fair market value of the Company’s common stock on the date the stock appreciation right is granted. Restricted stock awards may be granted under the 2006 Plan subject to the terms specified by the plan administrator. The period over which any restricted award may fully vest is generally no less than three years. Restricted stock awards are non-vested stock awards that may include grants of restricted stock or grants of restricted stock units (“RSUs”). Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. During that period, ownership of the shares cannot be transferred. Restricted stock has the same voting rights as other common stock and is considered to be currently issued and outstanding. RSUs do not have the voting rights of common stock, and the shares underlying the RSUs are not considered issued and outstanding. The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, ratably over the period during which the restrictions lapse. Performance awards may be in the form of performance shares or performance units. Performance shares are awards denominated in shares of Company common stock and a performance unit is an award denominated in units having a dollar value or other currency, as determined by the plan administrator. The plan administrator will determine the number of performance awards that will be granted and will establish the performance goals and other conditions for payment of such performance awards. The period of measuring the achievement of performance goals will be a minimum of twelve months. Other stock-based awards may be granted under the 2006 Plan subject to the terms specified by the plan administrator. Other stock-based awards may include dividend equivalents, restricted stock awards, or amounts which are equivalent to all or a portion of any federal, state, local, domestic or foreign taxes relating to an award, and may be payable in shares, cash, other securities or any other form of property as the plan administrator may determine. In the event of a change in control of the Company, all awards under the 2006 Plan vest in full and all outstanding performance shares and performance units will be paid out upon transfer. Any shares of common stock subject to an award that is forfeited, settled in cash, expires or is otherwise settled without the issuance of shares shall again be available for awards under the 2006 Plan. Additionally, any shares that are tendered by a participant of the 2006 Plan or retained by the Company as full or partial payment to the Company for the purchase of an award or to satisfy tax withholding obligations in connection with an award shall no longer again be made available for issuance under the 2006 Plan. Employee Stock Purchase Plan The Company sponsors an Employee Stock Purchase Plan (the “ESPP”), pursuant to which eligible employees may contribute up to 10% of 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. Since the price of the shares is determined at the purchase date, the Company recognizes expense based on the 15% discount at purchase. For the years ended December 31, 2015 , 2014 , and 2013 , the Company recognized ESPP compensation expense of $0.5 million , $0.5 million and $0.4 million , respectively. As of December 31, 2015 , 0.1 million shares were reserved for future issuance under the ESPP. Option Activity Stock option activity during the year ended December 31, 2015 was as follows: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In dollars) (In years) (In thousands) Outstanding at December 31, 2014 3,939 $ 30.58 Granted 296 31.34 Exercised (1,353 ) 30.55 Cancelled (163 ) 33.09 Expired (258 ) 34.78 Outstanding at December 31, 2015 2,461 $ 30.08 5.7 $ 29,109 As of December 31, 2015: Vested and expected to vest 2,386 $ 30.02 5.6 $ 28,358 Exercisable Options 1,784 $ 29.26 4.7 $ 22,562 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic values (the difference between the Company’s closing stock price on the last trading day of 2015 and the exercise price, multiplied by the number of shares underlying the in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015 . This amount changes based on the fair market value of the Company’s stock. Total intrinsic value of options exercised for the year ended December 31, 2015 , 2014 , and 2013 was $11.4 million , $3.4 million and $4.2 million , respectively. The total fair value of options vested during the years ended December 31, 2015 , 2014 , and 2013 was $6.5 million , $10.0 million and $13.0 million , respectively. The following table summarizes significant ranges of outstanding and exercisable stock options as of December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Shares Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Per Share Shares Exercisable Weighted- Average Exercise Price Per Share (In thousands) (In years) (In dollars) (In thousands) (In dollars) $10.69 - $28.79 591 3.01 $ 20.84 585 $ 20.77 $29.23 - $31.31 573 6.65 30.86 274 30.39 $31.45 - $32.54 557 7.53 32.49 291 32.48 $32.55 - $35.32 583 5.70 34.24 504 34.32 $36.80 - $40.01 157 5.25 38.13 130 38.36 $10.69 - $40.01 2,461 5.66 $ 30.08 1,784 $ 29.26 RSU Activity RSU activity during the year ended December 31, 2015 was as follows: Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term Aggregate (In thousands) (In dollars) (In years) (In thousands) Outstanding at December 31, 2014 858 $ 30.68 RSUs granted 525 32.16 RSUs vested (285 ) 31.06 RSUs cancelled (134 ) 31.52 Outstanding at December 31, 2015 964 $ 31.63 1.46 $ 40,399 Total intrinsic value of RSUs, or the release date fair value of RSUs, vested during the years ended December 31, 2015 , 2014 and 2013 was $8.9 million , $9.0 million and $2.9 million , respectively. The total fair value or RSUs, or the grant date fair value of RSUs, vested during the years ended December 31, 2015 , 2014 and 2013 was $8.8 million , $8.4 million and $2.3 million , respectively. Valuation and Expense Information The Company measures stock-based compensation at the grant date based on the estimated fair value of the award. Estimated compensation cost relating to RSUs is based on the closing fair market value of the Company’s common stock on the date of grant. The fair value of Employee Stock Purchase Plan (“ESPP”) is based on the 15% discount at purchase, since the price of the shares is determined at the purchase date. 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 following table sets forth the weighted-average assumptions used to estimate the fair value stock option grants during the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 Expected life (in years) 4.5 4.5 4.4 Risk-free interest rate 1.44 % 1.43 % 0.72 % Expected volatility 39.3 % 42.6 % 48.05 % Dividend yield — — — The weighted average estimated fair value of options granted during the years ended December 31, 2015 , 2014 and 2013 was $10.83 , $12.04 and $13.29 , respectively. The following table sets forth stock-based compensation expense resulting from stock options, restricted stock awards, and the Employee Stock Purchase Plan included in the Company’s consolidated statements of operations (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenue $ 1,566 $ 2,037 $ 1,577 Research and development 3,451 4,916 3,943 Sales and marketing 5,022 6,168 5,379 General and administrative 6,786 6,893 6,563 Total $ 16,825 $ 20,014 $ 17,462 The Company recognizes these compensation costs net of the estimated forfeitures on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years . Total stock-based compensation cost capitalized in inventory was less than $0.5 million in the year ended December 31, 2015 , 2014 and 2013 . As of December 31, 2015 , $6.4 million of unrecognized compensation cost related to stock options, adjusted for estimated forfeitures, is expected to be recognized over a weighted-average period of 2.4 years . As of December 31, 2015 , $19.6 million of unrecognized compensation cost related to unvested RSUs, adjusted for estimated forfeitures, is expected to be recognized over a weighted-average period of 2.5 years . 401(k) Plan In April 2000, the Company adopted the NETGEAR 401(k) Plan to which employees may contribute up to 100% of salary subject to the legal maximum. In the first quarter of 2012, the Company began matching 50% of contributions for employees that remain active with the Company through the end of the fiscal year, up to a maximum of $6,000 in employee contributions. During the years ended December 31, 2015 , 2014 and 2013 the Company recognized $0.9 million , $1.0 million and $1.0 million , respectively, in expenses related to the 401(k) match. |
Segment Information, Operations
Segment Information, Operations By Geographic Area And Customer Concentration (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information, Operations By Geographic Area And Customer Concentration | Segment Information, Operations by Geographic Area and Customer Concentration 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 has identified its CEO as the CODM and 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 video security, storage and digital media 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. Each business unit contains leadership focused on the product development efforts, both from a product marketing and engineering standpoint, to service the unique needs of these customer segments. 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 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, impact to cost of sales from acquisition accounting adjustments to inventory, litigation reserves, net, impairment charges, 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): Year Ended December 31, 2015 2014 2013 Net revenue: Retail $ 614,367 $ 508,100 $ 509,924 Commercial 264,846 305,677 311,261 Service provider 421,482 579,738 548,448 Total net revenues $ 1,300,695 $ 1,393,515 $ 1,369,633 Contribution income: Retail $ 85,231 $ 76,266 $ 73,418 Retail contribution margin 13.9 % 15.0 % 14.4 % Commercial 53,393 70,810 66,506 Commercial contribution margin 20.2 % 23.2 % 21.4 % Service Provider 39,151 47,547 51,620 Service Provider contribution margin 9.3 % 8.2 % 9.4 % Total segment contribution income 177,775 194,623 191,544 Corporate and unallocated costs (54,501 ) (53,581 ) (51,629 ) Amortization of intangibles (1) (16,969 ) (17,573 ) (15,217 ) Stock-based compensation expense (16,825 ) (20,014 ) (17,462 ) Restructuring and other charges (6,398 ) (2,209 ) (5,335 ) Acquisition-related expense (2) — (8 ) (940 ) Impact to cost of sales from acquisition accounting adjustments to inventory (407 ) — (568 ) Litigation reserves, net 2,682 1,011 (5,354 ) Goodwill impairment charges — (74,196 ) — Intangibles impairment charges — — (2,000 ) Interest income 295 253 400 Other income (expense), net (88 ) 2,455 (457 ) Income before income taxes $ 85,564 $ 30,761 $ 92,982 ________________________________ (1) Amount excludes amortization expense related to patents within purchased intangibles in costs of revenues. (2) These acquisition-related charges were expensed in the period incurred and reported in the Company's consolidated statements of operations within cost of revenues and operating expense. 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): Year Ended December 31, 2015 2014 2013 United States (U.S.) $ 779,361 $ 750,933 $ 769,357 Americas (excluding U.S.) 18,385 19,957 19,961 United Kingdom (U.K.) 103,649 154,503 142,729 EMEA (excluding U.K.) 218,065 267,384 269,959 APAC 181,235 200,738 167,627 Total net revenue $ 1,300,695 $ 1,393,515 $ 1,369,633 Best Buy Co., Inc. and Affiliates accounted for 15% of net revenue, wholly within the retail business unit, in the year ended December 31, 2015. No customers accounted for 10% or more of net revenue in the years ended December 31, 2014 and 2013. Long-lived assets include purchased intangibles, goodwill and property and equipment. The Company's property and equipment are located in the following geographic locations (in thousands): As of December 31, 2015 December 31, 2014 United States $ 9,832 $ 12,453 Canada 3,586 4,375 EMEA 468 657 China 6,562 10,786 APAC (excluding China) 1,936 1,423 $ 22,384 $ 29,694 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value Measurements (in thousands) The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014: As of December 31, 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 $ 10,976 $ 10,976 $ — $ — Available-for-sale securities- U.S. treasuries (1) 94,993 94,993 — — Available-for-sale securities-certificates of deposit (1) 147 147 — — Trading securities - mutual funds (1) 1,181 1,181 — — Foreign currency forward contracts (2) 3,205 — 3,205 — Total assets measured at fair value $ 110,502 $ 107,297 $ 3,205 $ — (1) Included in short-term investments on the Company's consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company's consolidated balance sheet. As of December 31, 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) $ 451 $ — $ 451 $ — Total liabilities measured at fair value $ 451 $ — $ 451 $ — (3) Included in other accrued liabilities on the Company's 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) 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 consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company's 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 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 December 31, 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. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event In January 2016, the Company went through a restructuring to reduce the cost structure of the service provider business unit and supporting functions, to match the reduced revenue outlook and concentrate resources on long-term and profitable accounts. The Company estimates its cost will be between approximately $1.5 million and $2.5 million . These charges primarily include severance, other one-time termination benefits and other associated costs. The Company expects to record the majority of these charges and complete the restructuring by the end of the first fiscal quarter of 2016. . |
Quarterly Financial Data (Notes
Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY FINANCIAL DATA (In thousands, except per share amounts) (Unaudited) The following table presents unaudited quarterly financial information for each of the Company’s last eight quarters. This information has been derived from the Company’s unaudited financial statements and has been prepared on the same basis as the audited consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K. In the opinion of management, all necessary adjustments, consisting only of normal recurring adjustments, have been included to state fairly the quarterly results. December 31, September 27, June 28, March 29, Net revenue $ 360,863 $ 341,893 $ 288,782 $ 309,157 Gross profit $ 105,416 $ 96,327 $ 77,656 $ 88,280 Provision for income taxes $ 8,927 $ 10,780 $ 7,258 $ 10,015 Net income $ 21,807 $ 15,099 $ 3,667 $ 8,011 Net income per share—basic $ 0.68 $ 0.47 $ 0.11 $ 0.23 Net income per share—diluted $ 0.66 $ 0.47 $ 0.11 $ 0.23 December 31, (a) September 28, June 29, March 30, Net revenue $ 353,182 $ 353,338 $ 337,604 $ 349,391 Gross profit $ 100,474 $ 102,333 $ 97,186 $ 97,925 Provision (benefit) for income taxes $ (5,609 ) $ 8,847 $ 9,698 $ 9,037 Net income (loss) $ (40,353 ) $ 20,025 $ 14,705 $ 14,411 Net income (loss) per share—basic $ (1.16 ) $ 0.56 $ 0.41 $ 0.39 Net income (loss) per share—diluted $ (1.16 ) $ 0.55 $ 0.40 $ 0.39 (a) Net loss includes a non-cash goodwill impairment charge of $74.2 million relating to the service provider business unit. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of Valuation and Quarterly Financial Information [Text Block] | The following financial statement schedule of NETGEAR, Inc. for the fiscal years ended December 31, 2015 , 2014 and 2013 is filed as part of this Form 10-K and should be read in conjunction with the consolidated financial statements of NETGEAR, Inc. Schedule II—Valuation and Qualifying Accounts (In thousands) Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts: Year ended December 31, 2015 $ 1,255 $ 35 $ (35 ) $ 1,255 Year ended December 31, 2014 1,255 189 (189 ) 1,255 Year ended December 31, 2013 1,256 277 (278 ) 1,255 Allowance for sales returns and warranty: Year ended December 31, 2015 62,376 105,987 (95,754 ) 72,609 Year ended December 31, 2014 66,221 97,546 (101,391 ) 62,376 Year ended December 31, 2013 63,690 104,810 (102,279 ) 66,221 Allowance for price protection: Year ended December 31, 2015 1,806 7,467 (7,148 ) 2,125 Year ended December 31, 2014 4,273 7,534 (10,001 ) 1,806 Year ended December 31, 2013 1,783 8,352 (5,862 ) 4,273 |
The Company and Summary of Si24
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Policy Text Block] | Basis of presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in the consolidation of these subsidiaries. |
Fiscal Periods [Policy Text Block] | Fiscal periods 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 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. |
Use of Estimates [Policy Text Block] | Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. |
Cash and Cash Equivalents [Policy Text Block] | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity at the time of purchase of three months or less to be cash equivalents. The Company deposits cash and cash equivalents with high credit quality financial institutions. |
Short-Term Investment [Policy Text Block] | Short-term investments Short-term investments are partially comprised of marketable securities that consist of government securities with an original maturity or a remaining maturity at the time of purchase, of greater than three months and no more than 12 months. The marketable securities are held in the Company's name with one high quality financial institution, which acts as the Company's custodian and investment manager. These marketable securities are classified as available-for-sale securities in accordance with the provisions of the authoritative guidance for investments and are carried at fair value with unrealized gains and losses reported as a separate component of stockholders' equity. Short-term investments are also comprised of marketable securities related to deferred compensation under the Company’s Deferred Compensation Plan. Mutual funds are the only investments allowed in the Company's Deferred Compensation Plan and the investments are held in a grantor trust formed by the Company. The Company has classified these investments as trading securities as the grantor trust actively manages the asset allocation to match the participants’ notional fund allocations. These securities are recorded at fair market value with unrealized gains and losses included in other income (expense), net. |
Certain Risks And Uncertainties [Policy Text Block] | Certain risks and uncertainties The Company's products are concentrated in the networking industry, which is characterized by rapid technological advances, changes in customer requirements and evolving regulatory requirements and industry standards. The success of the Company depends on management's ability to anticipate and/or to respond quickly and adequately to such changes. Any significant delays in the development or introduction of products could have a material adverse effect on the Company's business and operating results. The Company relies on a limited number of third parties to manufacture all of its products. If any of the Company's third-party manufacturers cannot or will not manufacture its products in required volumes, on a cost-effective basis, in a timely manner, or at all, the Company will have to secure additional manufacturing capacity. Any interruption or delay in manufacturing could have a material adverse effect on the Company's business and operating results. |
Derivatives[Policy Text Block] | Derivative financial instruments The Company uses foreign currency forward contracts to manage the exposures to foreign exchange risk related to expected future cash flows on certain forecasted revenue, costs of revenue, operating expenses, and on certain existing assets and liabilities. Foreign currency forward contracts generally mature within five months of inception. Under its foreign currency risk management strategy, the Company utilizes derivative instruments to reduce the impact of currency exchange rate movements on the Company's operating results by offsetting gains and losses on the forward contracts with increases or decreases in foreign currency transactions. The company does not use derivative financial instruments for speculative purposes. The Company accounts for its derivative instruments as either assets or liabilities and records them at fair value. Derivatives that are not defined as hedges in the authoritative guidance for derivatives and hedging must be adjusted to fair value through earnings. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income in stockholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in earnings. |
Concentration Risk, Credit Risk [Policy Text Block] | Concentration of credit risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. The Company believes that there is minimal credit risk associated with the investment of its cash and cash equivalents and short-term investments, due to the restrictions placed on the type of investment that can be entered into under the Company's investment policy. The Company's short-term investments consist of investment-grade securities, and the Company's cash and investments are held and managed by recognized financial institutions. The Company's customers are primarily distributors as well as retailers and broadband service providers who sell or distribute the products to a large group of end-users. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company's customers to make required payments. The Company regularly performs credit evaluations of the Company's customers' financial condition and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks and current economic conditions that may affect customers' ability to pay. The Company does not require collateral from its customers. The Company secures credit insurance for certain customers in international and domestic markets. As of December 31, 2015 and December 31, 2014 , Best Buy, Inc. accounted for 37% and 21% of the Company's total accounts receivable, respectively, and no other customers accounted for 10% or greater of the Company's total accounts receivable. The Company is exposed to credit loss in the event of nonperformance by counterparties to the foreign currency forward contracts used to mitigate the effect of foreign currency exchange rate changes. The Company believes the counterparties for its outstanding contracts are large, financially sound institutions and thus, the Company does not anticipate nonperformance by these counterparties. However, given the recent, unprecedented turbulence in the financial markets, the failure of additional counterparties is possible. |
Fair Value of Financial Instruments [Policy Text Block] | Fair value measurements The carrying amounts of the Company's financial instruments, including cash equivalents, short-term investments, accounts receivable, and accounts payable approximate their fair values due to their short maturities. Foreign currency forward contracts are recorded at fair value based on observable market data. See Note 13, Fair Value Measurements, of the Notes to Consolidated Financial Statements for disclosures regarding fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures. |
Cost Method Investments [Policy Text Block] | Cost method investments The Company's cost method investments are included in other non-current assets in the consolidated balance sheets and are carried at cost, adjusted for any impairment, because the Company does not have a controlling interest and does not have the ability to exercise significant influence over these companies. The Company monitors these investments for impairment on a quarterly basis, and adjusts carrying value for any impairment charges recognized. Realized gains and losses on these investments are reported in other income (expense), net in the consolidated statements of operations. |
Allowance for doubtful accounts [Policy Text Block] | Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company regularly performs credit evaluations of its customers' financial condition and considers factors such as historical experience, credit quality, age of the accounts receivable balances, and geographic or country-specific risks and economic conditions that may affect a customer's ability to pay. The allowance for doubtful accounts is reviewed quarterly and adjusted if necessary based on the Company's assessments of its customers' ability to pay. If the financial condition of the Company's customers should deteriorate or if actual defaults are higher than the Company's historical experience, additional allowances may be required, which could have an adverse impact on operating expenses. |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of finished goods which are valued at the lower of cost or market, with cost being determined using the first-in, first-out method. The Company writes down its inventories based on estimated excess and obsolete inventories determined primarily by future demand forecasts. At the point of loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase of the newly established cost basis. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment, net Property and equipment are stated at historical cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Computer equipment 2 years Furniture and fixtures 5 years Software 2-5 years Machinery and equipment 2-3 years Leasehold improvements Shorter of the lease term or 5 years Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. The carrying value of the asset is reviewed on a regular basis for the existence of facts, both internal and external, that may suggest impairment. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the purchase price over estimated fair value of net assets of businesses acquired in a business combination. Goodwill acquired in a business combination is not amortized, but instead tested for impairment at least annually on the first day of the fourth quarter. Should certain events or indicators of impairment occur between annual impairment tests, the Company performs the impairment test as those events or indicators occur. Examples of such events or circumstances include the following: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in the business climate; and slower growth rates. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying value. The Company identified the reporting units as retail, commercial and service provider reporting units, as this is the lowest level for which discrete financial information is available and segment management regularly reviews the operating results. The qualitative assessment considers the following factors: macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance, events affecting the reporting units, and changes in the Company's share price. If the reporting unit does not pass the qualitative assessment, the Company estimates its fair value and compares the fair value with the carrying value of its net assets. If the fair value is greater than the carrying value of its net assets, no impairment is recorded. If the fair value is less than its carrying value, the Company would determine the fair value of the goodwill by comparing the implied fair value to the carrying value of the goodwill in the same manner as if the reporting unit were being acquired in a business combination. Specifically, the Company would allocate the fair value to all of its assets and liabilities, including any unrecognized intangibles, in a hypothetical analysis that would calculate the implied fair value of goodwill. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge would be recorded to earnings in the consolidated statements of operations. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangibles, net Purchased intangibles with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from four to ten years. Finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the fourth quarter of fiscal year 2015, the Company saw a decline in net revenue in the service provider reporting unit. According to its customers, purchase constraints will tighten further in 2016 and for the foreseeable future. Due to the decline in the long-term revenue and profit outlook, the Company performed the recoverability test of the long-lived assets within the service provider reporting unit. The Company estimated the undiscounted future cash flows directly associated with each asset group and compared the amounts to the carrying value of each asset group. Based on the results of the recoverability test, the sum of undiscounted future cash flows was greater than the carrying value of each asset group and therefore no impairment was recorded. The Company also reviewed the depreciation and amortization policies for the long-lived asset groups and ensured the remaining useful lives are appropriate. Purchased intangibles determined to have indefinite useful lives are not amortized. Indefinite-lived intangibles are reviewed for impairment at least annually during the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Measurement of an impairment loss for indefinite-lived assets that management expects to hold and use is based on the fair value of the asset. Indefinite-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. The carrying value of the asset is reviewed on a regular basis for the existence of facts, both internal and external, that may suggest impairment. |
Standard Product Warranty, Policy [Policy Text Block] | Warranty obligations The Company provides for estimated future warranty obligations at the time revenue is recognized. The Company's standard warranty obligation to its direct customers generally provides for a right of return of any product for a full refund in the event that such product is not merchantable or is found to be damaged or defective. At the time revenue is recognized, an estimate of future warranty returns is recorded to reduce revenue in the amount of the expected credit or refund to be provided to its direct customers. At the time the Company records the reduction to revenue related to warranty returns, the Company includes within cost of revenue a write-down to reduce the carrying value of such products to net realizable value. The Company's standard warranty obligation to its end-users provides for replacement of a defective product for one or more years. Factors that affect the warranty obligation include product failure rates, material usage, and service delivery costs incurred in correcting product failures. The estimated cost associated with fulfilling the Company's warranty obligation to end-users is recorded in cost of revenue. Because the Company's products are manufactured by third-party manufacturers, in certain cases the Company has recourse to the third-party manufacturer for replacement or credit for the defective products. The Company gives consideration to amounts recoverable from its third-party manufacturers in determining its warranty liability. |
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition Revenue from product sales is generally recognized at the time the product is shipped provided that persuasive evidence of an arrangement exists, title and risk of loss has transferred to the customer, the selling price is fixed or determinable and collection of the related receivable is reasonably assured. Currently, for some of the Company's customers, title passes to the customer upon delivery to the port or country of destination, upon their receipt of the product, or upon the customer's resale of the product. At the end of each fiscal quarter, the Company estimates and defers revenue related to product where title has not transferred. The revenue continues to be deferred until such time that title passes to the customer. The Company assesses collectability based on a number of factors, including general economic and market conditions, past transaction history with the customer, and the creditworthiness of the customer. If the Company determines that collection is not reasonably assured, then revenue is deferred until receipt of the payment from the customer. The Company has product offerings with multiple elements. The Company's multiple-element product offerings include networking hardware with embedded software, various software subscription services, and support, which are considered separate units of accounting. In general, the networking hardware with embedded software is delivered up front, while the subscription services and support are delivered over the subscription and support period. The Company allocates revenue to the software deliverables and the non-software deliverables (including software deliverables which function together with hardware deliverables to provide the product's essential functionality) based upon their relative selling price. Revenue allocated to each unit of accounting is then recognized when persuasive evidence of an arrangement exists, title and risk of loss has transferred to the customer, the selling price is fixed or determinable and collection of the related receivable is reasonably assured. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence ("VSOE") of fair value of the deliverable, or when VSOE of fair value is unavailable, its best estimate of selling price (“ESP”), as the Company has determined it is unable to establish third-party evidence of selling price for the deliverables. In determining VSOE, the Company requires that a substantial majority of the selling prices for a deliverable sold on a stand-alone basis fall within a reasonably narrow pricing range, generally evidenced by approximately 80% of such historical stand-alone transactions falling within +/-15% of the median price. The Company determines ESP for a deliverable by considering multiple factors including, but not limited to, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. The objective of ESP is to determine the price at which the Company would transact a sale if the deliverable were sold on a stand-alone basis. The determination of ESP is made through consultation with and formal approval by the Company's management, taking into consideration the go-to-market strategy. Certain distributors and retailers generally have the right to return product for stock rotation purposes. Upon shipment of the product, the Company reduces revenue for an estimate of potential future product warranty and stock rotation returns related to the current period product revenue. Management analyzes historical returns, channel inventory levels, current economic trends and changes in customer demand for the Company's products when evaluating the adequacy of the allowance for sales returns, namely warranty and stock rotation returns. Revenue on shipments is also reduced for estimated price protection and sales incentives deemed to be contra-revenue under the authoritative guidance for revenue recognition. |
Revenue Recognition, Incentives [Policy Text Block] | Sales incentives The Company accrues for sales incentives as a marketing expense if it receives an identifiable benefit in exchange and can reasonably estimate the fair value of the identifiable benefit received; otherwise, it is recorded as a reduction to revenues. As a consequence, the Company records a substantial portion of its channel marketing costs as a reduction of revenue. The Company records estimated reductions to revenues for sales incentives at the later of when the related revenue is recognized or when the program is offered to the customer or end consumer. |
Shipping and Handling Cost, Policy [Policy 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. In cases where the Company gives a freight allowance to the customer for their own inbound freight costs, such costs are appropriately recorded as a reduction in net revenue. |
Research and Development Expense, Policy [Policy Text Block] | Research and development Costs incurred in the research and development of new products are charged to expense as incurred. |
Advertising Costs, Policy [Policy Text Block] | Advertising costs Advertising costs are expensed as incurred. |
Income Tax, Policy [Policy Text Block] | Income taxes The Company accounts for income taxes under an asset and liability approach. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatment for tax versus accounting for certain items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheet. The Company must then assess the likelihood that the Company's deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. The Company’s assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. In the ordinary course of business there is inherent uncertainty in assessing the Company's income tax positions. The Company assesses its tax positions and records benefits for all years subject to examination based on management's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recorded in the financial statements. Where applicable, associated interest and penalties have also been recognized as a component of income tax expense. |
Earnings Per Share, Policy [Policy Text Block] | Net income per share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the additional dilution from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options and awards. Potentially dilutive shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based compensation The Company measures stock-based compensation at the grant date based on the fair value of the award. The fair value of stock options is estimated using the Black-Scholes option pricing model. Estimated compensation cost relating to restricted stock units (“RSUs”) is based on the closing fair market value of the Company’s common stock on the date of grant. The fair value of Employee Stock Purchase Plan (“ESPP”) is based on the 15% discount at purchase, since the price of the shares is determined at the purchase date. The compensation expense for equity awards is reduced by an estimate for forfeitures and is recognized over the vesting period of the award under a graded vesting method. In addition, the Company will recognize an excess benefit from stock-based compensation in equity based on the difference between tax expense computed with consideration of the windfall deduction and without consideration of the windfall deduction. In addition, the Company accounts for the indirect effects of stock-based compensation on the research tax credit and the foreign tax credit in the income statement. See Note 11, Employee Benefit Plans , of the Notes to Consolidated Financial Statements for a further discussion on stock-based compensation. |
Comprehensive Income [Policy Text Block] | Comprehensive income Comprehensive income consists of net income and other gains and losses affecting stockholder's equity that the Company excluded from net income, including gains and losses related to fair value of short-term investments and the effective portion of cash flow hedges that were outstanding as of the end of the year. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation and re-measurement The Company's functional currency is the U.S. dollar for all of its international subsidiaries. Foreign currency transactions of international subsidiaries are re-measured into U.S. dollars at the end-of-period exchange rates for monetary assets and liabilities, and historical exchange rates for non-monetary assets. Expenses are re-measured at average exchange rates in effect during each period, except for expenses related to non-monetary assets, which are re-measured at historical exchange rates. Revenue is re-measured at average exchange rates in effect during each period. Gains and losses arising from foreign currency transactions are included in other income (expense), net. |
The Company and Summary of Si25
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Estimated Useful Lives Of Property and Equipment, Net [Table Text Block] | Property and equipment are stated at historical cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Computer equipment 2 years Furniture and fixtures 5 years Software 2-5 years Machinery and equipment 2-3 years Leasehold improvements Shorter of the lease term or 5 years |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Arada Systems [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase price was as follows (in thousands): Property and equipment, net $ 15 Intangibles, net 4,040 Goodwill 1,195 Total purchase price $ 5,250 |
Sierra Wireless AirCard Business [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase price was as follows (in thousands): Inventories $ 2,874 Prepaid expenses and other current assets 12,256 Property and equipment, net 7,455 Intangibles, net 69,700 Goodwill 53,841 Liabilities assumed (6,096 ) Total purchase price $ 140,030 |
Pro Forma Information | The unaudited pro forma financial information is as follows (in thousands): Year Ended December 31, 2013 (in millions) Net revenue $ 1,415 Net income $ 57 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Available-For-Sale Short-Term | As of December 31, 2015 December 31, 2014 Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cost Unrealized Gain Unrealized Loss Estimated Fair Value U.S. treasuries $ 95,057 $ 1 $ (65 ) $ 94,993 $ 114,944 $ 6 $ (15 ) $ 114,935 Certificates of deposits 147 — — 147 158 — — 158 Total $ 95,204 $ 1 $ (65 ) $ 95,140 $ 115,102 $ 6 $ (15 ) $ 115,093 |
Schedule Of Accounts Receivable And Related Allowances | Accounts receivable, net As of December 31, 2015 December 31, 2014 Gross accounts receivable $ 309,926 $ 296,239 Allowance for doubtful accounts (1,255 ) (1,255 ) Allowance for sales returns (15,904 ) (17,489 ) Allowance for price protection (2,125 ) (1,806 ) Total allowances (19,284 ) (20,550 ) Total accounts receivable, net $ 290,642 $ 275,689 |
Schedule Of Inventories | Inventories As of December 31, 2015 December 31, 2014 Raw materials $ 4,292 $ 3,625 Work-in-process 2 8 Finished goods 208,824 219,250 Total inventories $ 213,118 $ 222,883 |
Schedule Of Property And Equipment, Net | Property and equipment, net As of December 31, 2015 December 31, 2014 Computer equipment $ 11,161 $ 9,779 Furniture, fixtures and leasehold improvements 18,317 19,379 Software 30,396 29,294 Machinery and equipment 66,662 60,135 Total property and equipment, gross 126,536 118,587 Accumulated depreciation and amortization (104,152 ) (88,893 ) Total property and equipment, net $ 22,384 $ 29,694 |
Schedule Of Purchased Intangibles, Net | Intangibles, net The following tables present details of the Company’s purchased intangibles: Gross Accumulated Amortization Net December 31, 2015 Technology $ 61,099 $ (48,485 ) $ 12,614 Customer contracts and relationships 56,500 (23,290 ) 33,210 Other 10,545 (7,422 ) 3,123 Total intangibles, net 128,144 (79,197 ) 48,947 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 finite-lived intangibles for each of the next five years and thereafter is as follows: Year Ended December 31, Amount 2016 $ 16,921 2017 11,386 2018 7,871 2019 6,028 2020 5,316 Thereafter 1,425 Total expected amortization expense $ 48,947 |
Schedule Of Activity Related To Goodwill | Goodwill The changes in the carrying amount of goodwill during the years ended December 31, 2015 and 2014 are as follows: Retail Commercial Service Provider Total Goodwill at December 31, 2013 $ 45,442 $ 36,279 $ 74,196 $ 155,916 Goodwill impairment charges — — (74,196 ) (74,196 ) Goodwill at December 31, 2014 45,442 $ 36,279 — 81,721 Goodwill impairment charges — — — — Goodwill at December 31, 2015 $ 45,442 $ 36,279 $ — $ 81,721 |
Schedule of Other Assets, Noncurrent | Other non-current assets As of December 31, 2015 December 31, 2014 Non-current deferred income taxes $ 68,445 * $ 38,696 Cost method investments 105 1,322 Other 7,824 8,059 Total other non-current assets $ 76,374 $ 48,077 * Includes a reclassification of the net current deferred tax asset to the net non-current deferred tax asset in the consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. Refer to Note 1, The Company and Summary of Significant Accounting Policies , for additional information regarding the early adoption of the ASU 2015-17. |
Schedule Of Other Accrued Liabilities | Other accrued liabilities As of December 31, 2015 December 31, 2014 Sales and marketing programs $ 69,693 $ 54,582 Warranty obligation 56,706 44,888 Freight 5,748 6,827 Other 34,135 37,445 Total other accrued liabilities $ 166,282 $ 143,742 |
Restructuring and Other Charg28
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Other Charges [Abstract] | |
Restructuring and other charges [Table Text Block] | Restructuring Acquisition transition costs Total (in thousands) Balance at December 31, 2013 $ 1,013 $ 10 $ 1,023 Additions 2,228 6 2,234 Cash payments (2,901 ) (16 ) (2,917 ) Adjustments (24 ) — (24 ) Balance at December 31, 2014 316 — 316 Additions (a) 5,946 — 5,946 Cash payments (5,736 ) — (5,736 ) Balance at December 31, 2015 $ 526 $ — $ 526 (a) Total restructuring and other charges recognized in the Company's consolidated statement of operations for the year ended December 31, 2015 includes non-cash charges and adjustments, net of $0.5 million . These amounts have been excluded from the table above. |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 consolidated balance sheet to which they were recorded as of December 31, 2015 , and December 31, 2014 , are summarized as follows (in thousands): Derivative Assets Balance Sheet Location Fair value at December 31, 2015 Balance Sheet Location Fair value at December 31, 2014 Derivative assets not designated as hedging instruments Prepaid expenses and other current assets $ 3,203 Prepaid expenses and other current assets $ 2,416 Derivative assets designated as hedging instruments Prepaid expenses and other current assets 2 Prepaid expenses and other current assets — Total $ 3,205 $ 2,416 Derivative Liabilities Balance Sheet Location Fair value at December 31, 2015 Balance Sheet Location Fair value at December 31, 2014 Derivative liabilities not designated as hedging instruments Other accrued liabilities $ 447 Other accrued liabilities $ 409 Derivative liabilities designated as hedging instruments Other accrued liabilities 4 Other accrued liabilities 38 Total $ 451 $ 447 |
Schedule of Offsetting of Derivative Assets | The following tables set forth the offsetting of derivative assets as of December 31, 2015 and December 31, 2014 (in thousands): As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 577 $ — $ 577 $ (56 ) $ — $ 521 Wells Fargo 2,628 — 2,628 (395 ) — 2,233 Total $ 3,205 $ — $ 3,205 $ (451 ) $ — $ 2,754 As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Assets Presented in the 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 December 31, 2015 and December 31, 2014 (in thousands): As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Barclays $ 56 $ — $ 56 $ (56 ) $ — $ — Wells Fargo 395 — 395 (395 ) — — Total $ 451 $ — $ 451 $ (451 ) $ — $ — As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the 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 consolidated statement of operations for the years ended December 31, 2015 , 2014 and 2013 are summarized as follows (in thousands): Derivatives Designated as Hedging Instruments Year Ended December 31, 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 $ 453 Net revenue $ 462 Other income (expense), net $ (52 ) Foreign currency forward contracts — Cost of revenue 6 Other income (expense), net — Foreign currency forward contracts — Operating expenses (15 ) Other income (expense), net — Total $ 453 $ 453 $ (52 ) Derivatives Designated as Hedging Instruments Year Ended December 31, 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 $ 292 Net revenue $ 459 Other income (expense), net $ (144 ) Foreign currency forward contracts — Cost of revenue 4 Other income (expense), net — Foreign currency forward contracts — Operating expenses (149 ) Other income (expense), net — Total $ 292 $ 314 $ (144 ) Derivatives Designated as Hedging Instruments Year Ended December 31, 2013 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 $ 775 Net revenue $ 844 Other income (expense), net $ (117 ) Foreign currency forward contracts — Cost of revenue (9 ) Other income (expense), net — Foreign currency forward contracts — Operating expenses (149 ) Other income (expense), net — Total $ 775 $ 686 $ (117 ) (a) Refer to Note 10, 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 derivatives not designated as hedging instruments in other income (expense), net in the consolidated statements of operations for the years ended December 31, 2015 , 2014 and 2013 , 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 on Derivative Year ended December 31, 2015 2014 2013 Foreign currency forward contracts Other income (expense), net 4,956 4,897 $ 458 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Net Income Per Share | Net income per share for the years ended December 31, 2015 , 2014 and 2013 are as follows (in thousands, except per share data): Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Numerator: Net income $ 48,584 $ 8,788 $ 55,217 Denominator: Weighted average common shares - basic 33,161 35,771 38,379 Potentially dilutive common share equivalent 627 674 569 Weighted average common shares - dilutive 33,788 36,445 38,948 Basic net income per share $ 1.47 $ 0.25 $ 1.44 Diluted net income per share $ 1.44 $ 0.24 $ 1.42 Anti-dilutive employee stock-based awards, excluded 1,807 2,617 2,846 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other income (expense), net consisted of the following (in thousands): Year Ended December 31, 2015 2014 2013 Foreign currency transaction loss, net $ (5,114 ) $ (5,642 ) $ (1,592 ) Foreign currency contract gain, net 4,904 4,753 341 Gain on litigation settlements — 2,800 — Other 122 544 794 Total $ (88 ) $ 2,455 $ (457 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income before income taxes consists of the following (in thousands): Year Ended December 31, 2015 2014 2013 United States $ 88,681 $ 25,152 $ 91,318 International (3,117 ) 5,609 1,664 Total $ 85,564 $ 30,761 $ 92,982 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2015 2014 2013 Current: U.S. Federal $ 30,970 $ 29,089 $ 30,989 State 3,139 2,873 3,751 Foreign 6,105 10,930 11,224 40,214 42,892 45,964 Deferred: U.S. Federal (2,645 ) (20,347 ) (6,741 ) State 134 (326 ) (1,164 ) Foreign (723 ) (246 ) (294 ) (3,234 ) (20,919 ) (8,199 ) Total $ 36,980 $ 21,973 $ 37,765 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets consist of the following (in thousands): Year Ended December 31, 2015 2014 Deferred Tax Assets: Accruals and allowances $ 29,279 $ 25,756 Net operating loss carryforwards 5,353 6,210 Stock-based compensation 9,895 12,416 Deferred rent 2,740 2,137 Deferred revenue 1,185 1,654 Tax credit carryforwards 2,262 1,769 Acquired intangibles 22,778 21,916 Other — 142 Total deferred tax assets 73,492 72,000 Deferred Tax Liabilities: Depreciation and amortization (967 ) (1,245 ) Other (438 ) — Total deferred tax liabilities (1,405 ) (1,245 ) Valuation Allowance**: (3,642 ) (3,020 ) Net deferred tax assets $ 68,445 $ 67,735 Current portion $ — $ 29,039 Non-current portion 68,445 * 38,696 Net deferred tax assets $ 68,445 $ 67,735 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows: Year Ended December 31, 2015 2014 2013 Tax at federal statutory rate 35.0 % 35.0 % 35.0 % State, net of federal benefit 2.6 % 2.5 % 2.2 % Impact of international operations 7.1 % 19.8 % 3.9 % Stock-based compensation (0.4 )% 5.5 % 1.8 % Tax credits (1.2 )% (3.8 )% (1.9 )% Valuation allowance — % 3.5 % — % Goodwill impairment — % 7.8 % — % Others 0.1 % 1.1 % (0.4 )% Provision for income taxes 43.2 % 71.4 % 40.6 % |
Schedule of Reconciliation of Unrecognized Tax Benefits [Table Text Block] | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UTB”) is as follows (in thousands): Federal, State, and Foreign Tax Gross UTB Balance at December 31, 2012 $ 12,339 Additions based on tax positions related to the current year 1,866 Additions for tax positions of prior years 4,106 Settlements (3,134 ) Reductions for tax positions of prior years (1,163 ) Reductions due to lapse of applicable statutes (1,314 ) Adjustments due to foreign exchange rate movement 43 Gross UTB Balance at December 31, 2013 12,743 Additions based on tax positions related to the current year 1,894 Additions for tax positions of prior years 1,722 Settlements (503 ) Reductions for tax positions of prior years (152 ) Reductions due to lapse of applicable statutes (1,838 ) Adjustments due to foreign exchange rate movement (502 ) Gross UTB Balance at December 31, 2014 $ 13,364 Additions based on tax positions related to the current year 1,608 Additions for tax positions of prior years 228 Settlements (199 ) Reductions for tax positions of prior years (302 ) Reductions due to lapse of applicable statutes (1,053 ) Adjustments due to foreign exchange rate movement (816 ) Gross UTB Balance at December 31, 2015 12,830 |
Commitments And Contingencies C
Commitments And Contingencies Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under non-cancelable operating leases are as follows (in thousands): Year Ending December 31, 2016 $ 8,429 2017 5,761 2018 5,598 2019 5,342 2020 5,404 Thereafter 23,209 Total minimum lease payments $ 53,743 |
Commitments And Contingencies P
Commitments And Contingencies Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company's warranty liability, which is included as a component of “Other accrued liabilities” in the consolidated balance sheets, are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Balance at the beginning of the year $ 44,888 $ 48,754 $ 46,659 Provision for warranty obligations made during the year 80,085 62,709 69,755 Settlements made during the year (68,267 ) (66,575 ) (67,660 ) Balance at the end of year $ 56,706 $ 44,888 $ 48,754 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | The following table sets forth the changes in accumulated other comprehensive income by component, net of tax, during the years ended December 31, 2015 , 2014 and 2013 (in thousands): Gains and losses on available for sale securities Gains and losses on derivatives Total Balance as of December 31, 2012 $ 28 $ (24 ) $ 4 Other comprehensive income (loss) before reclassifications (24 ) 775 751 Amounts reclassified from accumulated other comprehensive loss — (686 ) (686 ) Net current period other comprehensive income (loss) (24 ) 89 65 Balance as of December 31, 2013 $ 4 $ 65 $ 69 Other comprehensive income (loss) before reclassifications (9 ) 292 283 Amounts reclassified from accumulated other comprehensive loss — (314 ) (314 ) Net current period other comprehensive loss (9 ) (22 ) (31 ) Balance as of December 31, 2014 $ (5 ) $ 43 $ 38 Other comprehensive income before reclassifications (35 ) 453 418 Amounts reclassified from accumulated other comprehensive loss — (453 ) (453 ) Net current period other comprehensive income (35 ) — (35 ) Balance as of December 31, 2015 $ (40 ) $ 43 $ 3 |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The following tables provide details about significant amounts reclassified out of each component of accumulated other comprehensive income for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Details about Accumulated Other Comprehensive Income Components Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Amount Reclassified from AOCI Affected Line Item in the Statement of Operations 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 $ 462 Net revenue $ 459 Net revenue $ 844 Net revenue Foreign currency forward contracts 6 Cost of revenue 4 Cost of revenue (9 ) Cost of revenue Foreign currency forward contracts (15 ) Operating expenses (149 ) Operating expenses (149 ) Operating expenses 453 Total before tax 314 Total before tax 686 Total before tax — Tax expense (1) — Tax expense (1) — Tax expense (1) $ 453 Total, net of tax $ 314 Total, net of tax $ 686 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) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Schedule Of Stock Option Activity | Option Activity Stock option activity during the year ended December 31, 2015 was as follows: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In dollars) (In years) (In thousands) Outstanding at December 31, 2014 3,939 $ 30.58 Granted 296 31.34 Exercised (1,353 ) 30.55 Cancelled (163 ) 33.09 Expired (258 ) 34.78 Outstanding at December 31, 2015 2,461 $ 30.08 5.7 $ 29,109 As of December 31, 2015: Vested and expected to vest 2,386 $ 30.02 5.6 $ 28,358 Exercisable Options 1,784 $ 29.26 4.7 $ 22,562 |
Schedule of Ranges of Outstanding And Exercisable Stock Options | The following table summarizes significant ranges of outstanding and exercisable stock options as of December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Shares Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Per Share Shares Exercisable Weighted- Average Exercise Price Per Share (In thousands) (In years) (In dollars) (In thousands) (In dollars) $10.69 - $28.79 591 3.01 $ 20.84 585 $ 20.77 $29.23 - $31.31 573 6.65 30.86 274 30.39 $31.45 - $32.54 557 7.53 32.49 291 32.48 $32.55 - $35.32 583 5.70 34.24 504 34.32 $36.80 - $40.01 157 5.25 38.13 130 38.36 $10.69 - $40.01 2,461 5.66 $ 30.08 1,784 $ 29.26 |
Schedule Of RSU Activity | RSU Activity RSU activity during the year ended December 31, 2015 was as follows: Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term Aggregate (In thousands) (In dollars) (In years) (In thousands) Outstanding at December 31, 2014 858 $ 30.68 RSUs granted 525 32.16 RSUs vested (285 ) 31.06 RSUs cancelled (134 ) 31.52 Outstanding at December 31, 2015 964 $ 31.63 1.46 $ 40,399 |
Schedule Of Valuation And Expense Information | The following table sets forth the weighted-average assumptions used to estimate the fair value stock option grants during the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 Expected life (in years) 4.5 4.5 4.4 Risk-free interest rate 1.44 % 1.43 % 0.72 % Expected volatility 39.3 % 42.6 % 48.05 % Dividend yield — — — |
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 stock-based compensation expense resulting from stock options, restricted stock awards, and the Employee Stock Purchase Plan included in the Company’s consolidated statements of operations (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenue $ 1,566 $ 2,037 $ 1,577 Research and development 3,451 4,916 3,943 Sales and marketing 5,022 6,168 5,379 General and administrative 6,786 6,893 6,563 Total $ 16,825 $ 20,014 $ 17,462 |
Segment Information, Operatio37
Segment Information, Operations By Geographic Area And Customer Concentration (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2015 2014 2013 Net revenue: Retail $ 614,367 $ 508,100 $ 509,924 Commercial 264,846 305,677 311,261 Service provider 421,482 579,738 548,448 Total net revenues $ 1,300,695 $ 1,393,515 $ 1,369,633 Contribution income: Retail $ 85,231 $ 76,266 $ 73,418 Retail contribution margin 13.9 % 15.0 % 14.4 % Commercial 53,393 70,810 66,506 Commercial contribution margin 20.2 % 23.2 % 21.4 % Service Provider 39,151 47,547 51,620 Service Provider contribution margin 9.3 % 8.2 % 9.4 % Total segment contribution income 177,775 194,623 191,544 Corporate and unallocated costs (54,501 ) (53,581 ) (51,629 ) Amortization of intangibles (1) (16,969 ) (17,573 ) (15,217 ) Stock-based compensation expense (16,825 ) (20,014 ) (17,462 ) Restructuring and other charges (6,398 ) (2,209 ) (5,335 ) Acquisition-related expense (2) — (8 ) (940 ) Impact to cost of sales from acquisition accounting adjustments to inventory (407 ) — (568 ) Litigation reserves, net 2,682 1,011 (5,354 ) Goodwill impairment charges — (74,196 ) — Intangibles impairment charges — — (2,000 ) Interest income 295 253 400 Other income (expense), net (88 ) 2,455 (457 ) Income before income taxes $ 85,564 $ 30,761 $ 92,982 ________________________________ (1) Amount excludes amortization expense related to patents within purchased intangibles in costs of revenues. (2) These acquisition-related charges were expensed in the period incurred and reported in the Company's consolidated statements of operations within cost of revenues and operating expense. |
Schedule Of Net Revenue By Geography Periods | The following table shows net revenue by geography for the periods indicated (in thousands): Year Ended December 31, 2015 2014 2013 United States (U.S.) $ 779,361 $ 750,933 $ 769,357 Americas (excluding U.S.) 18,385 19,957 19,961 United Kingdom (U.K.) 103,649 154,503 142,729 EMEA (excluding U.K.) 218,065 267,384 269,959 APAC 181,235 200,738 167,627 Total net revenue $ 1,300,695 $ 1,393,515 $ 1,369,633 |
Schedule Of Long-Lived Asset By Geographic Areas | The Company's property and equipment are located in the following geographic locations (in thousands): As of December 31, 2015 December 31, 2014 United States $ 9,832 $ 12,453 Canada 3,586 4,375 EMEA 468 657 China 6,562 10,786 APAC (excluding China) 1,936 1,423 $ 22,384 $ 29,694 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured On Recurring Basis | As of December 31, 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 $ 10,976 $ 10,976 $ — $ — Available-for-sale securities- U.S. treasuries (1) 94,993 94,993 — — Available-for-sale securities-certificates of deposit (1) 147 147 — — Trading securities - mutual funds (1) 1,181 1,181 — — Foreign currency forward contracts (2) 3,205 — 3,205 — Total assets measured at fair value $ 110,502 $ 107,297 $ 3,205 $ — (1) Included in short-term investments on the Company's consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company's 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) 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 consolidated balance sheet. (2) Included in prepaid expenses and other current assets on the Company's consolidated balance sheet. |
Fair Value, Liabilities 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) 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 consolidated balance sheet. As of December 31, 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) $ 451 $ — $ 451 $ — Total liabilities measured at fair value $ 451 $ — $ 451 $ — (3) Included in other accrued liabilities on the Company's consolidated balance sheet. |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table presents unaudited quarterly financial information for each of the Company’s last eight quarters. This information has been derived from the Company’s unaudited financial statements and has been prepared on the same basis as the audited consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K. In the opinion of management, all necessary adjustments, consisting only of normal recurring adjustments, have been included to state fairly the quarterly results. December 31, September 27, June 28, March 29, Net revenue $ 360,863 $ 341,893 $ 288,782 $ 309,157 Gross profit $ 105,416 $ 96,327 $ 77,656 $ 88,280 Provision for income taxes $ 8,927 $ 10,780 $ 7,258 $ 10,015 Net income $ 21,807 $ 15,099 $ 3,667 $ 8,011 Net income per share—basic $ 0.68 $ 0.47 $ 0.11 $ 0.23 Net income per share—diluted $ 0.66 $ 0.47 $ 0.11 $ 0.23 December 31, (a) September 28, June 29, March 30, Net revenue $ 353,182 $ 353,338 $ 337,604 $ 349,391 Gross profit $ 100,474 $ 102,333 $ 97,186 $ 97,925 Provision (benefit) for income taxes $ (5,609 ) $ 8,847 $ 9,698 $ 9,037 Net income (loss) $ (40,353 ) $ 20,025 $ 14,705 $ 14,411 Net income (loss) per share—basic $ (1.16 ) $ 0.56 $ 0.41 $ 0.39 Net income (loss) per share—diluted $ (1.16 ) $ 0.55 $ 0.40 $ 0.39 (a) Net loss includes a non-cash goodwill impairment charge of $74.2 million relating to the service provider business unit. |
The Company and Summary of Si40
The Company and Summary of Significant Accounting Policies Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Cost method investment | $ 105 | $ 1,322 | |
Goodwill impairment charges | $ 0 | 74,196 | $ 0 |
Standard Warranty Replacement of a Defective Product, Period | 1 year | ||
Shipping, Handling and Transportation Costs | $ 10,400 | 10,500 | 11,600 |
Marketing and Advertising Expense | 19,400 | 19,100 | 18,000 |
Foreign Currency Transaction Gain (loss), net | (5,114) | (5,642) | (1,592) |
Intangibles Impairment charges | 0 | 0 | 2,000 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | |
Service Provider [Member] | |||
Significant Accounting Policies [Line Items] | |||
Goodwill impairment charges | $ 0 | $ 74,196 | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Accounts Receivable [Member] | Best Buy Inc [Member] | Customer Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 37.00% | 21.00% | |
Sierra Wireless AirCard Business [Member] | |||
Significant Accounting Policies [Line Items] | |||
Intangibles Impairment charges | $ 2,000 |
The Company and Summary of Si41
The Company and Summary of Significant Accounting Policies Property and Equipment, Net (Schedule of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the lease term or 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Business Acquisitions (Narrativ
Business Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Jun. 23, 2013 | Apr. 04, 2013 | Jun. 29, 2014 | Sep. 29, 2013 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 21, 2013 | Apr. 02, 2013 |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 81,721 | $ 81,721 | $ 155,916 | |||||||
Intangibles Impairment charges | 0 | 0 | 2,000 | |||||||
Amortization of Intangible Assets | $ 17,300 | $ 17,900 | 15,500 | |||||||
Arada Systems [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total purchase price | $ 5,250 | |||||||||
Purchase price, cash paid | $ 1,100 | 4,200 | ||||||||
Intangible assets, net | $ 4,040 | |||||||||
Goodwill | 1,195 | |||||||||
Arada Systems [Member] | Technology [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, net | 4,000 | |||||||||
Discount rate used to calculate present value of future cash flows ( in percentage) | 21.50% | |||||||||
Acquired intangible assets, estimated useful life ( in years) | 5 years | |||||||||
Arada Systems [Member] | US Federal [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 700 | |||||||||
Arada Systems [Member] | State and Local Jurisdiction [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 1,200 | |||||||||
Sierra Wireless AirCard Business [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total purchase price | $ 140,030 | |||||||||
Goodwill, Purchase Accounting Adjustments | $ 500 | |||||||||
Intangible assets, net | $ 69,700 | |||||||||
Goodwill | 53,841 | |||||||||
Intangibles Impairment charges | $ 2,000 | |||||||||
Sierra Wireless AirCard Business [Member] | In-Process Research and Development [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, net | 9,500 | |||||||||
Discount rate used to calculate present value of future cash flows ( in percentage) | 13.00% | |||||||||
Sierra Wireless AirCard Business [Member] | Technology [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, net | 16,300 | |||||||||
Discount rate used to calculate present value of future cash flows ( in percentage) | 10.00% | |||||||||
Acquired intangible assets, estimated useful life ( in years) | 4 years | |||||||||
In Process Research and Development achieving technological feasibility | $ 7,500 | |||||||||
Sierra Wireless AirCard Business [Member] | Customer Relationships [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, net | 40,500 | |||||||||
Discount rate used to calculate present value of future cash flows ( in percentage) | 12.00% | |||||||||
Acquired intangible assets, estimated useful life ( in years) | 8 years | |||||||||
Sierra Wireless AirCard Business [Member] | Noncompete Agreements [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, net | 2,300 | |||||||||
Discount rate used to calculate present value of future cash flows ( in percentage) | 12.00% | |||||||||
Acquired intangible assets, estimated useful life ( in years) | 5 years | |||||||||
Sierra Wireless AirCard Business [Member] | Order Backlog [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, net | 1,100 | |||||||||
Discount rate used to calculate present value of future cash flows ( in percentage) | 10.00% | |||||||||
Sierra Wireless AirCard Business [Member] | US Federal [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 35,800 | |||||||||
Sierra Wireless AirCard Business [Member] | Canadian [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 2,300 | |||||||||
Sierra Wireless AirCard Business [Member] | State and Local Jurisdiction [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 53,800 |
Business Acquisitions (Schedule
Business Acquisitions (Schedule Of Allocation Of Purchase Price) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 21, 2013 | Apr. 02, 2013 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 81,721 | $ 81,721 | $ 155,916 | ||
Arada Systems [Member] | |||||
Business Acquisition [Line Items] | |||||
Property and equipment, net | $ 15 | ||||
Intangible assets, net | 4,040 | ||||
Goodwill | 1,195 | ||||
Total consideration | $ 5,250 | ||||
Sierra Wireless AirCard Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Inventories | $ 2,874 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 12,256 | ||||
Property and equipment, net | 7,455 | ||||
Intangible assets, net | 69,700 | ||||
Goodwill | 53,841 | ||||
Liabilities assumed | (6,096) | ||||
Total consideration | $ 140,030 |
Business Acquisitions (Schedu44
Business Acquisitions (Schedule of ProForma Information (Details) - Sierra Wireless AirCard Business [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 1,415,000 |
Net Income | $ 57,000 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance Sheet Components [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | $ 74,200,000 | $ 74,200,000 | |
Cost method investment | 105,000 | 1,322,000 | |
Cost-method Investments, Other than Temporary Impairment | 0 | 0 | $ 0 |
Amortization expense | 17,300,000 | 17,900,000 | 15,500,000 |
Goodwill impairment charges | 0 | 74,196,000 | 0 |
Intangibles Impairment charges | $ 0 | 0 | $ 2,000,000 |
Minimum [Member] | |||
Balance Sheet Components [Line Items] | |||
Available-for-sale Securities, Maturity Period ( in months) | 3 months | ||
Maximum [Member] | |||
Balance Sheet Components [Line Items] | |||
Available-for-sale Securities, Maturity Period ( in months) | 12 months | ||
Service Provider [Member] | |||
Balance Sheet Components [Line Items] | |||
Goodwill impairment charges | $ 0 | $ 74,196,000 |
Balance Sheet Components (Sched
Balance Sheet Components (Schedule Of Available-For-Sale Short-Term) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 95,204 | $ 115,102 |
Unrealized Gain | 1 | 6 |
Unrealized Loss | (65) | (15) |
Estimated Fair Value | 95,140 | 115,093 |
Treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 95,057 | 114,944 |
Unrealized Gain | 1 | 6 |
Unrealized Loss | (65) | (15) |
Estimated Fair Value | 94,993 | 114,935 |
Certificates Of Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 147 | 158 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | $ 147 | $ 158 |
Balance Sheet Components (Sch47
Balance Sheet Components (Schedule Of Accounts Receivable And Related Allowances) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 309,926 | $ 296,239 |
Allowance for Doubtful Accounts Receivable, Current | (19,284) | (20,550) |
Total accounts receivable, net | 290,642 | 275,689 |
Allowance for Doubtful Accounts, Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | (1,255) | (1,255) |
Allowance for Sales Returns [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | (15,904) | (17,489) |
Allowance For Price Protection [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | $ (2,125) | $ (1,806) |
Balance Sheet Components (Sch48
Balance Sheet Components (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 4,292 | $ 3,625 |
Work-in-process | 2 | 8 |
Finished Goods | 208,824 | 219,250 |
Total | $ 213,118 | $ 222,883 |
Balance Sheet Components (Sch49
Balance Sheet Components (Schedule Of Property And Equipment, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Total property and equipment, gross | $ 126,536 | $ 118,587 |
Accumulated depreciation and amortization | (104,152) | (88,893) |
Total property and equipment, net | 22,384 | 29,694 |
Computer Equipment [Member] | ||
Total property and equipment, gross | 11,161 | 9,779 |
Furniture, Fixtures And Leasehold Improvements [Member] | ||
Total property and equipment, gross | 18,317 | 19,379 |
Software [Member] | ||
Total property and equipment, gross | 30,396 | 29,294 |
Machinery and Equipment [Member] | ||
Total property and equipment, gross | $ 66,662 | $ 60,135 |
Balance Sheet Components Balanc
Balance Sheet Components Balance Sheet Components - Property and Equipment, other information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 18.1 | $ 17.6 | $ 17.3 |
Balance Sheet Components (Sch51
Balance Sheet Components (Schedule Of Intangibles, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Purchased Intangible Assets [Line Items] | ||
Gross | $ 128,144 | $ 128,144 |
Accumulated Amortization | (79,197) | (61,914) |
Finite-lived intangibles, net | 48,947 | 66,230 |
Intangibles, net | 48,947 | 66,230 |
Technology [Member] | ||
Purchased Intangible Assets [Line Items] | ||
Gross | 61,099 | 61,099 |
Accumulated Amortization | (48,485) | (39,341) |
Finite-lived intangibles, net | 12,614 | 21,758 |
Customer Contracts And Relationships [Member] | ||
Purchased Intangible Assets [Line Items] | ||
Gross | 56,500 | 56,500 |
Accumulated Amortization | (23,290) | (16,205) |
Finite-lived intangibles, net | 33,210 | 40,295 |
Other [Member] | ||
Purchased Intangible Assets [Line Items] | ||
Gross | 10,545 | 10,545 |
Accumulated Amortization | (7,422) | (6,368) |
Finite-lived intangibles, net | $ 3,123 | $ 4,177 |
Balance Sheet Components (Sch52
Balance Sheet Components (Schedule Of Estimated Amortization Expense Related To Intangibles) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
2,016 | $ 16,921 | |
2,017 | 11,386 | |
2,018 | 7,871 | |
2,019 | 6,028 | |
2,020 | 5,316 | |
Thereafter | 1,425 | |
Total expected amortization expense | $ 48,947 | $ 66,230 |
Balance Sheet Components (Sch53
Balance Sheet Components (Schedule Of Goodwill By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Goodwill (period start) | $ 81,721 | $ 155,916 | |
Goodwill impairment charges | 0 | (74,196) | $ 0 |
Goodwill (period end) | 81,721 | 81,721 | 155,916 |
Retail [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill (period start) | 45,442 | 45,442 | |
Goodwill impairment charges | 0 | 0 | |
Goodwill (period end) | 45,442 | 45,442 | 45,442 |
Commercial [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill (period start) | 36,279 | 36,279 | |
Goodwill impairment charges | 0 | 0 | |
Goodwill (period end) | 36,279 | 36,279 | 36,279 |
Service Provider [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill (period start) | 0 | 74,196 | |
Goodwill impairment charges | 0 | (74,196) | |
Goodwill (period end) | $ 0 | $ 0 | $ 74,196 |
Balance Sheet Components Schedu
Balance Sheet Components Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance Sheet Related Disclosures [Abstract] | |||
Non-current deferred income taxes | $ 68,445 | [1] | $ 38,696 |
Cost method investment | 105 | 1,322 | |
Other | 7,824 | 8,059 | |
Total other non-current assets | $ 76,374 | $ 48,077 | |
[1] | This includes a reclassification of the net current deferred tax asset to the net non-current deferred tax asset in the consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. Refer to Note 1, The Company and Summary of Significant Accounting Policies, for additional information regarding the early adoption of the ASU 2015-17. |
Balance Sheet Components (Sch55
Balance Sheet Components (Schedule Of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Related Disclosures [Abstract] | ||
Sales and marketing programs | $ 69,693 | $ 54,582 |
Warranty obligation | 56,706 | 44,888 |
Freight | 5,748 | 6,827 |
Other | 34,135 | 37,445 |
Total other accrued liabilities | $ 166,282 | $ 143,742 |
Restructuring and Other Charg56
Restructuring and Other Charges (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 6,398 | $ 2,209 | $ 5,335 |
Severance Costs | 800 | ||
Office lease exit [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Business Exit Costs | $ 1,400 |
Restructuring and Other Charg57
Restructuring and Other Charges Schedule of Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Non cash charges and adjustments, net | $ 500 | |||
Restructuring Reserve | 526 | $ 316 | $ 1,013 | |
Acquisition transition cost | 0 | 0 | 10 | |
Total accrual | 526 | 316 | $ 1,023 | |
Additions to restructuring cost | 5,946 | 2,228 | ||
Additions to acquisition transaction costslated Costs | 0 | 6 | ||
Total additions | 5,946 | [1] | 2,234 | |
Payments for Restructuring | (5,736) | (2,901) | ||
Payments for acquisition transition costs | 0 | (16) | ||
Total payments | $ (5,736) | (2,917) | ||
Restructuring adjustment | (24) | |||
Acquisition transition costs accrual adjustments | 0 | |||
Total adjustments | $ (24) | |||
[1] | Total restructuring and other charges recognized in the Company's consolidated statement of operations for the year ended December 31, 2015 includes non-cash charges and adjustments, net of $0.5 million. These amounts have been excluded from the table above. |
Derivative Financial Instrume58
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 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 |
Hedge period of forecasted hedge transaction (in days) | 60 days |
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 Instrume59
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 3,205 | $ 2,416 |
Derivative Liabilities, Fair Value | 451 | 447 |
Other Current Liabilities [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 447 | 409 |
Other Current Liabilities [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 4 | 38 |
Prepaid Expenses And Other Current Assets [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 3,203 | 2,416 |
Prepaid Expenses And Other Current Assets [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 2 | $ 0 |
Derivative Financial Instrume60
Derivative Financial Instruments Scheduel of Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting of Derivative Assets [Line Items] | ||
Derivative Assets, Fair Value | $ 3,205 | $ 2,416 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Asset, Fair Value, Net | 3,205 | 2,416 |
Derivative Asset, Fair Value, Gross Liability | (451) | (447) |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset | 2,754 | 1,969 |
Barclays [Member] | ||
Offsetting of Derivative Assets [Line Items] | ||
Derivative Assets, Fair Value | 577 | 319 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Asset, Fair Value, Net | 577 | 319 |
Derivative Asset, Fair Value, Gross Liability | (56) | (16) |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset | 521 | 303 |
Wells Fargo Bank [Member] | ||
Offsetting of Derivative Assets [Line Items] | ||
Derivative Assets, Fair Value | 2,628 | 2,097 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Asset, Fair Value, Net | 2,628 | 2,097 |
Derivative Asset, Fair Value, Gross Liability | (395) | (431) |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset | $ 2,233 | $ 1,666 |
Derivative Financial Instrume61
Derivative Financial Instruments Schedule of Offsetting of Derivate Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Liabilities [Line Items] | ||
Derivative Liabilities, Fair Value | $ 451 | $ 447 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 451 | 447 |
Derivative Liability, Fair Value, Gross Asset | (451) | (447) |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability | 0 | 0 |
Barclays [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liabilities, Fair Value | 56 | 16 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 56 | 16 |
Derivative Liability, Fair Value, Gross Asset | (56) | (16) |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability | 0 | 0 |
Wells Fargo Bank [Member] | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liabilities, Fair Value | 395 | 431 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 395 | 431 |
Derivative Liability, Fair Value, Gross Asset | (395) | (431) |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability | $ 0 | $ 0 |
Derivative Financial Instrume62
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (Loss) Recognized in OCI-Effective Portion | $ 453 | $ 292 | $ 775 |
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | 453 | 314 | 686 |
Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing | (52) | (144) | (117) |
Net Revenue [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | 462 | 459 | 844 |
Cost Of Revenue [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | 6 | 4 | (9) |
Operating Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | (15) | (149) | (149) |
Other Income (Expense), net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing | $ (52) | $ (144) | $ (117) |
Derivative Financial Instrume63
Derivative Financial Instruments (Schedule Of Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 4,956 | $ 4,897 | $ 458 |
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 | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings Per Share [Abstract] | ||||||||||||
Net Income | $ 21,807 | $ 15,099 | $ 3,667 | $ 8,011 | $ (40,353) | [1] | $ 20,025 | $ 14,705 | $ 14,411 | $ 48,584 | $ 8,788 | $ 55,217 |
Weighted average shares outstanding: Basic (in shares) | 33,161 | 35,771 | 38,379 | |||||||||
Dilutive potential common shares (in shares) | 627 | 674 | 569 | |||||||||
Weighted average shares outstanding: Total (in shares) | 33,788 | 36,445 | 38,948 | |||||||||
Basic net income per share (in dollars per share) | $ 0.68 | $ 0.47 | $ 0.11 | $ 0.23 | $ (1.16) | $ 0.56 | $ 0.41 | $ 0.39 | $ 1.47 | $ 0.25 | $ 1.44 | |
Diluted net income per share (in dollars per share) | $ 0.66 | $ 0.47 | $ 0.11 | $ 0.23 | $ (1.16) | $ 0.55 | $ 0.40 | $ 0.39 | $ 1.44 | $ 0.24 | $ 1.42 | |
Anti-dilutive common stock options (in shares) | 1,807 | 2,617 | 2,846 | |||||||||
[1] | Net loss includes a non-cash goodwill impairment charge of $74.2 million relating to the service provider business unit. |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
Foreign Currency Transaction Gain (loss), net | $ (5,114) | $ (5,642) | $ (1,592) |
Foreign Currency Contract Gain (Loss), Net | 4,904 | 4,753 | 341 |
Gain on litigation settlement | 0 | 2,800 | 0 |
Other | 122 | 544 | 794 |
Total | $ (88) | $ 2,455 | $ (457) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Line Items] | ||||
Income tax impact associated with stock option exercises | $ (2,233) | $ (481) | $ 429 | |
Deferred Tax Assets, Valuation Allowance | [1] | 3,642 | 3,020 | |
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss) | (21) | (5) | (16) | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 11,300 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 100 | 1,100 | $ 446 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 3,100 | 3,000 | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 136,900 | 78,300 | ||
State and Local Jurisdiction [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | 3,600 | $ 3,000 | ||
Operating Loss Carryforwards | 50 | |||
Tax Credit Carryforward, Amount | $ 2,300 | |||
Operating Loss Expiration Date, Range Start | 2,017 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 600 | |||
US Federal [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating Loss Carryforwards | $ 15,300 | |||
Operating Loss Expiration Date, Range Start | 2,021 | |||
Earliest Tax Year [Member] | ITALY | ||||
Income Tax Disclosure [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,004 | |||
Earliest Tax Year [Member] | GERMANY | ||||
Income Tax Disclosure [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,008 | |||
Latest Tax Year [Member] | ITALY | ||||
Income Tax Disclosure [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,011 | |||
Latest Tax Year [Member] | GERMANY | ||||
Income Tax Disclosure [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,013 | |||
[1] | Valuation allowance is presented gross. The valuation allowance net of the federal tax effect is ($2,367) and ($1,963) for the years ended December 31, 2015 and December 31, 2014, respectively. |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 88,681 | $ 25,152 | $ 91,318 |
International | (3,117) | 5,609 | 1,664 |
Income before income taxes | $ 85,564 | $ 30,761 | $ 92,982 |
Income Taxes Schedule of Provis
Income Taxes Schedule of Provision For Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. Federal | $ 30,970 | $ 29,089 | $ 30,989 | ||||||||
State | 3,139 | 2,873 | 3,751 | ||||||||
Foreign | 6,105 | 10,930 | 11,224 | ||||||||
Current, Total | 40,214 | 42,892 | 45,964 | ||||||||
U.S. Federal | (2,645) | (20,347) | (6,741) | ||||||||
State | 134 | (326) | (1,164) | ||||||||
Foreign | (723) | (246) | (294) | ||||||||
Deferred, Total | (3,234) | (20,919) | (8,199) | ||||||||
Provision for income taxes | $ 8,927 | $ 10,780 | $ 7,258 | $ 10,015 | $ (5,609) | $ 8,847 | $ 9,698 | $ 9,037 | $ 36,980 | $ 21,973 | $ 37,765 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Assets Tax Accruals And Allowance | $ 29,279 | $ 25,756 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 5,353 | 6,210 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 9,895 | 12,416 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 2,740 | 2,137 | ||
Deferred Tax Assets, Deferred Income | 1,185 | 1,654 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 2,262 | 1,769 | ||
Deferred Tax Assets Intangible Assets | 22,778 | 21,916 | ||
Deferred Tax Assets, Other | 0 | 142 | ||
Deferred Tax Assets, Tax Deferred Expense | 73,492 | 72,000 | ||
Deferred Tax Liabilities Deferred Expense Depreciation And Amortization | 967 | 1,245 | ||
Other deferred tax liabilities | 438 | 0 | ||
Deferred Tax Liabilities, Net | 1,405 | 1,245 | ||
Deferred Tax Assets, Valuation Allowance | [1] | (3,642) | (3,020) | |
Deferred income taxes | 0 | 29,039 | ||
Non-current deferred income taxes | 68,445 | [2] | 38,696 | |
Deferred Tax Assets, Net | $ 68,445 | $ 67,735 | ||
[1] | Valuation allowance is presented gross. The valuation allowance net of the federal tax effect is ($2,367) and ($1,963) for the years ended December 31, 2015 and December 31, 2014, respectively. | |||
[2] | This includes a reclassification of the net current deferred tax asset to the net non-current deferred tax asset in the consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. Refer to Note 1, The Company and Summary of Significant Accounting Policies, for additional information regarding the early adoption of the ASU 2015-17. |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% |
State, net of federal benefit | 2.60% | 2.50% | 2.20% |
Impact of international operations | 7.10% | 19.80% | 3.90% |
Stock-based compensation | (0.40%) | 5.50% | 1.80% |
Tax credits | (1.20%) | (3.80%) | (1.90%) |
Valuation allowance | 0.00% | 3.50% | 0.00% |
Goodwill impairment | 0.00% | 7.80% | 0.00% |
Others | 0.10% | 1.10% | (0.40%) |
Provision for income taxes (in percentage) | 43.20% | 71.40% | 40.60% |
Income Taxes Schedule of Reconc
Income Taxes Schedule of Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning | $ 13,364 | $ 12,743 | $ 12,339 |
Additions based on tax positions related to the current year | 1,608 | 1,894 | 1,866 |
Additions for tax positions of prior years | 228 | 1,722 | 4,106 |
Settlements | (199) | (503) | (3,134) |
Reductions for tax positions of prior years | (302) | (152) | (1,163) |
Reductions due to lapse of applicable statutes | (1,053) | (1,838) | (1,314) |
Adjustments due to foreign exchange rate movement | (816) | (502) | 43 |
Ending | $ 12,830 | $ 13,364 | $ 12,743 |
Income Taxes Income taxes (Deta
Income Taxes Income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | $ 2,233 | $ 481 | $ (429) |
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss) | 21 | $ 5 | $ 16 |
US Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | $ 15,300 | ||
Operating Loss Expiration Date, Range Start | 2,021 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating Loss Carryforwards | $ 50 | ||
Tax Credit Carryforward, Amount | $ 2,300 | ||
Operating Loss Expiration Date, Range Start | 2,017 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)$ / products | Sep. 14, 2010patents | |
Commitments And Contingencies [Line Items] | ||||
2,016 | $ 8,429,000 | |||
Operating leases expiration date | Dec. 31, 2026 | |||
Operating Leases, Rent Expense | $ 9,800,000 | $ 10,800,000 | $ 9,900,000 | |
Continued vesting period after termination without cause (in years) | 1 year | |||
Number of days for non-cancellation of purchase obligations prior to expected shipment date (in days) | 30 days | |||
Non-cancelable purchase commitments | $ 132,800,000 | |||
Liability for Director and Officer Indemnification Agreements | 0 | |||
Liability For Customers, Distributors, and Resellers Indemnification Agreements | $ 0 | |||
Number of patents company is accused of infringing (in patents) | patents | 8 | |||
Estimated future RAND royalty rate 2018 through 2020 | $ / products | 0.05 | |||
Reasonable and nondiscriminatory (RAND) royalty rate (USD per unit) | $ / products | 0.15 | |||
D-Link [Member] | Ericsson v. NETGEAR [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Value | $ 435,000 | |||
NETGEAR [Member] | Ericsson v. NETGEAR [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Value | 3,555,000 | |||
Toshiba [Member] | Ericsson v. NETGEAR [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Value | 2,445,000 | |||
Belkin [Member] | Ericsson v. NETGEAR [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Value | 600,000 | |||
Acer Gateway [Member] | Ericsson v. NETGEAR [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Value | 1,170,000 | |||
Dell [Member] | Ericsson v. NETGEAR [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Value | $ 1,920,000 | |||
46 To 60 Days [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of cancelable orders | 50.00% | |||
31 To 45 Days [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of cancelable orders | 25.00% | |||
Chief Executive Officer [Member] | ||||
Commitments And 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] | ||||
Commitments And 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] | ||||
Commitments And 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 | |||
Minimum [Member] | 46 To 60 Days [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Required notice period prior to the expected shipment date (in days) | 46 days | |||
Minimum [Member] | 31 To 45 Days [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Required notice period prior to the expected shipment date (in days) | 31 days | |||
Maximum [Member] | 46 To 60 Days [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Required notice period prior to the expected shipment date (in days) | 60 days | |||
Maximum [Member] | 31 To 45 Days [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Required notice period prior to the expected shipment date (in days) | 45 days |
Commitments And Contingencies S
Commitments And Contingencies Schedule of Future Minimum Lease Paynments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 8,429 |
2,017 | 5,761 |
2,018 | 5,598 |
2,019 | 5,342 |
2,020 | 5,404 |
Thereafter | 23,209 |
Total Future Minimum Lease Payments | $ 53,743 |
Commitments And Contingencies75
Commitments And Contingencies Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Warranties Disclosures [Abstract] | |||
Balance at the beginning of the period | $ 44,888 | $ 48,754 | $ 46,659 |
Product Warranty Accrual, Warranties Issued | 80,085 | 62,709 | 69,755 |
Settlements made during the year | (68,267) | (66,575) | (67,660) |
Balance at the end of the period | $ 56,706 | $ 44,888 | $ 48,754 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 21, 2015 | Oct. 17, 2014 | Oct. 21, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payments for Repurchase of Common Stock | $ 120,309 | $ 93,218 | $ 63,585 | |||
Remaining Number of Shares Authorized to be Repurchased | 2,200,000 | |||||
Shares Paid for Tax Withholding for Share Based Compensation | 85,000 | 82,000 | 14,000 | |||
Payments related to tax withholding for share based compensation (in USD) | $ 2,600 | $ 2,600 | $ 500 | |||
Repurchase plan authorized in Oct 2008 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 6,000,000 | |||||
Stock Repurchased and Retired During Period, Shares | 2,800,000 | 2,000,000 | ||||
Payments for Repurchase of Common Stock | $ 90,600 | $ 63,100 | ||||
Repurchase plan authorized in Oct 2014 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 3,000,000 | |||||
Stock Repurchased and Retired During Period, Shares | 3,800,000 | |||||
Payments for Repurchase of Common Stock | $ 117,700 | |||||
Repurchase plan approved in Oct 2015 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 3,000,000 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Changes in Accumulated Other Comprehensive Income by Component Net of Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 38 | $ 69 | $ 4 |
Other comprehensive (loss) income before reclassifications | 418 | 283 | 751 |
Amounts reclassified from accumulated other comprehensive income (loss) | (453) | (314) | (686) |
Net current period other comprehensive loss | (35) | (31) | 65 |
Ending balance | 3 | 38 | 69 |
Gains and losses on available for sale securities [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (5) | 4 | 28 |
Other comprehensive (loss) income before reclassifications | (35) | (9) | (24) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Net current period other comprehensive loss | (35) | (9) | (24) |
Ending balance | (40) | (5) | 4 |
Gains and losses on derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 43 | 65 | (24) |
Other comprehensive (loss) income before reclassifications | 453 | 292 | 775 |
Amounts reclassified from accumulated other comprehensive income (loss) | (453) | (314) | (686) |
Net current period other comprehensive loss | 0 | (22) | 89 |
Ending balance | $ 43 | $ 43 | $ 65 |
Stockholders' Equity (Schedul78
Stockholders' Equity (Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax | $ (21) | $ (5) | $ (16) | |
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 | 453 | 314 | 686 | |
Other Comprehensive Income (Loss), Tax | [1] | 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 | 462 | 459 | 844 | |
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 | 6 | 4 | (9) | |
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 | $ (15) | $ (149) | $ (149) | |
[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 (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum Amount Of Stock-Based Compensation Cost Capitalized | $ 500,000 | $ 500,000 | $ 500,000 | |
Equity Instruments Other than Options, Vested in Period, Total Intrinsic Value | $ 8,900,000 | 9,000,000 | 2,900,000 | |
Options granted, vesting term (in years) | 4 years | |||
Non-cash stock-based compensation | $ 16,825,000 | 20,014,000 | 17,462,000 | |
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 8,800,000 | 8,400,000 | 2,300,000 | |
Maximum Percentage Contribution Of Salary By Employees | 100.00% | |||
Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | |||
Maximum Contribution By Employer Value | $ 6,000 | |||
Cost Recognized | $ 900,000 | $ 1,000,000 | $ 1,000,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants In Period, Weighted Average Grant Date Fair Value | $ 10.83 | $ 12.04 | $ 13.29 | |
Options, Exercises in Period, Intrinsic Value | $ 11,400,000 | $ 3,400,000 | $ 4,200,000 | |
Total unrecognized compensation | $ 6,400,000 | |||
Weighted-average period of recognition of stock based compensation (in days) | 2 years 4 months 24 days | |||
Options, Vested in Period, Total Fair Value | $ 6,500,000 | $ 10,000,000 | 13,000,000 | |
RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation | $ 19,600,000 | |||
Weighted-average period of recognition of stock based compensation (in days) | 2 years 6 months | |||
2006 Long Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 2,500,000 | |||
Number of Additional Shares Authorized | 8,500,000 | |||
Equity Instruments Other Than Options, Conversion Ratio | 1.58 | |||
Minimum Percentage Of Exercise Price Granted To Ten Percentage Of Shareholders | 110.00% | |||
Options granted, vesting term (in years) | 4 years | |||
Number of shares reserved for future grant (in shares) | 1,500,000 | |||
Term Of Stock Appreciation Rights From Date Of Grant | 10 years | |||
2006 Long Term Incentive Plan [Member] | First Tranche [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, vesting term (in years) | 12 months | |||
2006 Long Term Incentive Plan [Member] | Remaining Tranche [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, vesting term (in years) | 3 years | |||
2006 Long Term Incentive Plan [Member] | Minimum [Member] | RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, vesting term (in years) | 3 years | |||
Period of Measuring the Achievement of Personal Goals | 12 months | |||
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) | 100,000 | |||
Maximum Percentage of compensation contributed by employees (in percentage) | 10.00% | |||
Purchase percentage of stock at fair market value (in percentage) | 85.00% | |||
discount from Market Price, Purchase Date | 15.00% | |||
Non-cash stock-based compensation | $ 539,000 | $ 523,000 | $ 420,000 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Stock Option Activity) (Details) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares, Beginning Balance (in shares) | shares | 3,939 |
Number of Shares, Granted (in shares) | shares | 296 |
Number of Shares, Exercised (in shares) | shares | (1,353) |
Number of Shares, Cancelled (in shares) | shares | (163) |
Number of shares, expired (in shares) | shares | (258) |
Number of Shares, Ending Balance (in shares) | shares | 2,461 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Beginning Balance (in dollars per share) | $ / shares | $ 30.58 |
Grants (in dollars per share) | $ / shares | 31.34 |
Exercises (in dollars per share) | $ / shares | 30.55 |
Cancelled (in dollars per share) | $ / shares | 33.09 |
Expired (in dollars per share) | $ / shares | 34.78 |
Ending Balance (in dollars per share) | $ / shares | $ 30.08 |
Outstanding, Weighted Average Remaining Contractual Term | 5 years 8 months 12 days |
Outstanding, Intrinsic Value | $ | $ 29,109 |
Vested and Expected to Vest, Number | shares | 2,386 |
Vested and Expected to Vest, Weighted Average Exercise Price | $ / shares | $ 30.02 |
Vested and Expected to Vest, Weighted Average Remaining Contractual Term | 5 years 7 months 6 days |
Vested and Expected to Vest, Aggregate Intrinsic Value | $ | $ 28,358 |
Exercisable, Number | shares | 1,784 |
Exercisable, Weighted Average Exercise Price | $ / shares | $ 29.26 |
Exercisable, Weighted Average Remaining Contractual Term | 4 years 8 months 12 days |
Exercisable, Intrinsic Value | $ | $ 22,562 |
Employee Benefit Plans (Sched81
Employee Benefit Plans (Schedule of Ranges of Outstanding And Exercisable Stock Optoins) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options | shares | 2,461 |
Outstanding Options, Weighted Average Remaining Contractual Term | 5 years 7 months 27 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 30.08 |
Exercise Price Range, Number of Exercisable Options | shares | 1,784 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 29.26 |
$10.69 - $28.79 | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options | shares | 591 |
Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 3 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 20.84 |
Exercise Price Range, Number of Exercisable Options | shares | 585 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 20.77 |
$29.23 - $31.31 | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options | shares | 573 |
Outstanding Options, Weighted Average Remaining Contractual Term | 6 years 7 months 24 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 30.86 |
Exercise Price Range, Number of Exercisable Options | shares | 274 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 30.39 |
$31.45 - $32.54 | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options | shares | 557 |
Outstanding Options, Weighted Average Remaining Contractual Term | 7 years 6 months 10 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 32.49 |
Exercise Price Range, Number of Exercisable Options | shares | 291 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 32.48 |
$32.55 - $35.32 | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options | shares | 583 |
Outstanding Options, Weighted Average Remaining Contractual Term | 5 years 8 months 12 days |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 34.24 |
Exercise Price Range, Number of Exercisable Options | shares | 504 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 34.32 |
$36.80 - $40.01 | |
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options | shares | 157 |
Outstanding Options, Weighted Average Remaining Contractual Term | 5 years 3 months |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 38.13 |
Exercise Price Range, Number of Exercisable Options | shares | 130 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 38.36 |
Employee Benefit Plans (Sched82
Employee Benefit Plans (Schedule Of RSU Activity) (Details) - RSUs [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Beginning Balance (in shares) | shares | 858 |
RSUs granted (in shares) | shares | 525 |
RSUs vested (in shares) | shares | (285) |
RSUs cancelled (in shares) | shares | (134) |
Ending Balance (in shares) | shares | 964 |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning Balance (in dollars per share) | $ / shares | $ 30.68 |
RSUs granted (in dollars per share) | $ / shares | 32.16 |
RSUs vested (in dollars per share) | $ / shares | 31.06 |
RSUs cancelled (in dollars per share) | $ / shares | 31.52 |
Ending Balance (in dollars per share) | $ / shares | $ 31.63 |
Weighted Average Remaining Contractual Terms | 1 year 5 months 15 days |
Equity Instruments Other than Options, Nonvested Intrinisc Value | $ | $ 40,399 |
Employee Benefit Plans (Sched83
Employee Benefit Plans (Schedule Of Valuation And Expense Information) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 4 years 6 months | 4 years 6 months | 4 years 4 months 24 days |
Risk Free Interest Rate | 1.44% | 1.43% | 0.72% |
Expected Volatility Rate | 39.30% | 42.60% | 48.05% |
Dividend yield (in percentage) | 0.00% | 0.00% | 0.00% |
Employee Benefit Plans (Sched84
Employee Benefit Plans (Schedule Of Total Stock-Based Compensation Expense Resulting) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 16,825 | $ 20,014 | $ 17,462 |
Cost Of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,566 | 2,037 | 1,577 |
Research And Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 3,451 | 4,916 | 3,943 |
Sales And Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 5,022 | 6,168 | 5,379 |
General And Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6,786 | $ 6,893 | $ 6,563 |
Segment Information, Operatio85
Segment Information, Operations By Geographic Area And Customer Concentration (Narrative) (Details) - business_unit | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of reportable segments (in segments) | 3 | ||
Net Revenue [Member] | None of the customers [Member] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Retail [Member] | Net Revenue [Member] | Best Buy Company Incorporation And Affiliates [Member] | |||
Concentration Risk, Percentage | 15.00% |
Schedule Of Reportable Segment
Schedule Of Reportable Segment And Reconciliation Of Segment Contribution Income To Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 360,863 | $ 341,893 | $ 288,782 | $ 309,157 | $ 353,182 | $ 353,338 | $ 337,604 | $ 349,391 | $ 1,300,695 | $ 1,393,515 | $ 1,369,633 | |
Total segment contribution income | 177,775 | 194,623 | 191,544 | |||||||||
Corporate and unallocated costs | (54,501) | (53,581) | (51,629) | |||||||||
Amortization of intangible assets | [1] | (16,969) | (17,573) | (15,217) | ||||||||
Stock-based compensation expense | (16,825) | (20,014) | (17,462) | |||||||||
Restructuring and other charges | (6,398) | (2,209) | (5,335) | |||||||||
Acquisition-related expense | [2] | 0 | (8) | (940) | ||||||||
Losses on inventory commitments due to restructuring | (407) | 0 | (568) | |||||||||
Litigation reserves, net | 2,682 | 1,011 | (5,354) | |||||||||
Goodwill impairment charges | 0 | (74,196) | 0 | |||||||||
Intangibles Impairment charges | 0 | 0 | (2,000) | |||||||||
Interest income | 295 | 253 | 400 | |||||||||
Other income (expense), net | (88) | 2,455 | (457) | |||||||||
Income before income taxes | 85,564 | 30,761 | 92,982 | |||||||||
Retail [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 614,367 | 508,100 | 509,924 | |||||||||
Total segment contribution income | $ 85,231 | $ 76,266 | $ 73,418 | |||||||||
Segment contribution margin (in percentage) | 13.90% | 15.00% | 14.40% | |||||||||
Goodwill impairment charges | $ 0 | $ 0 | ||||||||||
Commercial [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 264,846 | 305,677 | $ 311,261 | |||||||||
Total segment contribution income | $ 53,393 | $ 70,810 | $ 66,506 | |||||||||
Segment contribution margin (in percentage) | 20.20% | 23.20% | 21.40% | |||||||||
Goodwill impairment charges | $ 0 | $ 0 | ||||||||||
Service Provider [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 421,482 | 579,738 | $ 548,448 | |||||||||
Total segment contribution income | $ 39,151 | $ 47,547 | $ 51,620 | |||||||||
Segment contribution margin (in percentage) | 9.30% | 8.20% | 9.40% | |||||||||
Goodwill impairment charges | $ 0 | $ (74,196) | ||||||||||
[1] | Amount excludes amortization expense related to patents within purchased intangibles in costs of revenues. | |||||||||||
[2] | These acquisition-related charges were expensed in the period incurred and reported in the Company's consolidated statements of operations within cost of revenues and operating expense. |
Schedule Of Net Revenue By Geog
Schedule Of Net Revenue By Geography Periods (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 360,863 | $ 341,893 | $ 288,782 | $ 309,157 | $ 353,182 | $ 353,338 | $ 337,604 | $ 349,391 | $ 1,300,695 | $ 1,393,515 | $ 1,369,633 |
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 779,361 | 750,933 | 769,357 | ||||||||
Americas Excluding United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 18,385 | 19,957 | 19,961 | ||||||||
United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 103,649 | 154,503 | 142,729 | ||||||||
EMEA Excluding United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 218,065 | 267,384 | 269,959 | ||||||||
APAC [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 181,235 | $ 200,738 | $ 167,627 |
Schedule Of Long-Lived Asset By
Schedule Of Long-Lived Asset By Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 22,384 | $ 29,694 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 9,832 | 12,453 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,586 | 4,375 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 468 | 657 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 6,562 | 10,786 |
APAC Excluding China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,936 | $ 1,423 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Valuation Of Company's Financial Instruments By Various Levels) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | $ 110,502 | $ 122,719 | ||
Liabilities, Fair value | 451 | 447 | ||
Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 107,297 | 120,303 | ||
Liabilities, Fair value | 0 | 0 | ||
Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 3,205 | 2,416 | ||
Liabilities, Fair value | 451 | 447 | ||
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] | 3,205 | 2,416 | |
Liabilities, Fair value | [2] | 451 | 447 | |
Foreign Currency Forward Contracts [Member] | Level 1 [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] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 3,205 | 2,416 | ||
Liabilities, Fair value | 451 | 447 | ||
Foreign Currency Forward Contracts [Member] | 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 | ||
Money Market Funds [Member] | Cash Equivalents [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 10,976 | 4,408 | ||
Money Market Funds [Member] | Cash Equivalents [Member] | 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] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | ||
Money Market Funds [Member] | Available-For-Sale Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 10,976 | 4,408 | ||
Treasuries [Member] | Available-For-Sale Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | [3] | 94,993 | 114,935 | |
Treasuries [Member] | Available-For-Sale Securities [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 94,993 | 114,935 | ||
Treasuries [Member] | Available-For-Sale Securities [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | ||
Treasuries [Member] | Available-For-Sale Securities [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 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] | 147 | 158 | |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 147 | 158 | ||
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | [3] | |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | [3] | |
Mutual Funds [Member] | Trading Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | [3] | 1,181 | 802 | |
Mutual Funds [Member] | Trading Securities [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 1,181 | 802 | ||
Mutual Funds [Member] | Trading Securities [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | ||
Mutual Funds [Member] | Trading Securities [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | $ 0 | $ 0 | ||
[1] | Included in prepaid expenses and other current assets on the Company's consolidated balance sheet. | |||
[2] | Included in other accrued liabilities on the Company's consolidated balance sheet. | |||
[3] | Included in short-term investments on the Company's consolidated balance sheet. |
Subsequent Events (Narratives)
Subsequent Events (Narratives) (Details) $ in Millions | Jan. 31, 2016USD ($) |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ 1.5 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ 2.5 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Quarterly Financial Data [Abstract] | ||||||||||||
Net revenue | $ 360,863 | $ 341,893 | $ 288,782 | $ 309,157 | $ 353,182 | $ 353,338 | $ 337,604 | $ 349,391 | $ 1,300,695 | $ 1,393,515 | $ 1,369,633 | |
Gross Profit | 105,416 | 96,327 | 77,656 | 88,280 | 100,474 | 102,333 | 97,186 | 97,925 | 367,679 | 397,918 | 393,615 | |
Provision for income taxes | 8,927 | 10,780 | 7,258 | 10,015 | (5,609) | 8,847 | 9,698 | 9,037 | 36,980 | 21,973 | 37,765 | |
Net Income | $ 21,807 | $ 15,099 | $ 3,667 | $ 8,011 | $ (40,353) | [1] | $ 20,025 | $ 14,705 | $ 14,411 | $ 48,584 | $ 8,788 | $ 55,217 |
Basic net income per share (in dollars per share) | $ 0.68 | $ 0.47 | $ 0.11 | $ 0.23 | $ (1.16) | $ 0.56 | $ 0.41 | $ 0.39 | $ 1.47 | $ 0.25 | $ 1.44 | |
Diluted net income per share (in dollars per share) | $ 0.66 | $ 0.47 | $ 0.11 | $ 0.23 | $ (1.16) | $ 0.55 | $ 0.40 | $ 0.39 | $ 1.44 | $ 0.24 | $ 1.42 | |
[1] | Net loss includes a non-cash goodwill impairment charge of $74.2 million relating to the service provider business unit. |
Schedule II-Valuation and Qua92
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 1,255 | $ 1,255 | $ 1,256 |
Additions | 35 | 189 | 277 |
Deductions | (35) | (189) | (278) |
Balance at end of year | 1,255 | 1,255 | 1,255 |
Allowance For Sales Returns And Product Warranty [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 62,376 | 66,221 | 63,690 |
Additions | 105,987 | 97,546 | 104,810 |
Deductions | (95,754) | (101,391) | (102,279) |
Balance at end of year | 72,609 | 62,376 | 66,221 |
Allowance For Price Protection [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1,806 | 4,273 | 1,783 |
Additions | 7,467 | 7,534 | 8,352 |
Deductions | (7,148) | (10,001) | (5,862) |
Balance at end of year | $ 2,125 | $ 1,806 | $ 4,273 |