NETGEAR (NTGR) 10-Q 2 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 26, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	NETGEAR, INC
Entity Central Index Key	1,122,904
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		31,585,939

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 393,640	$ 202,870
Short-term investments	136,173	126,926
Accounts receivable, net	358,982	412,798
Inventories	330,516	245,894
Prepaid expenses and other current assets	39,011	27,176
Total current assets	1,258,322	1,015,664
Property and equipment, net	56,647	20,660
Intangibles, net	22,341	24,988
Goodwill	101,965	85,463
Other non-current assets	94,047	61,789
Total assets	1,533,322	1,208,564
Current liabilities:
Accounts payable	168,155	111,915
Accrued employee compensation	31,168	27,752
Other accrued liabilities	282,410	222,470
Deferred revenue	35,485	55,284
Income taxes payable	6,853	7,015
Total current liabilities	524,071	424,436
Non-current income taxes payable	21,273	31,544
Other non-current liabilities	53,499	22,099
Total liabilities	598,843	478,079
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock	32	31
Additional paid-in capital	785,694	603,137
Accumulated other comprehensive loss	(36)	(851)
Retained earnings	124,488	128,168
Total NETGEAR stockholders’ equity	910,178	730,485
Non-controlling interest	24,301	0
Total stockholders’ equity	934,479	730,485
Total liabilities and stockholders’ equity	$ 1,533,322	$ 1,208,564

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Income Statement [Abstract]
Net revenue	$ 400,586	$ 355,483	$ 1,112,379	$ 1,009,863
Cost of revenue	276,394	252,388	774,510	717,900
Gross profit	124,192	103,095	337,869	291,963
Operating expenses:
Research and development	35,253	23,127	95,571	69,167
Sales and marketing	49,005	40,311	139,646	115,001
General and administrative	23,268	14,229	60,354	40,373
Separation expense	7,054	0	25,822	0
Restructuring and other charges	1	19	1,368	78
Litigation reserves, net	0	15	5	68
Total operating expenses	114,581	77,701	322,766	224,687
Income from operations	9,611	25,394	15,103	67,276
Interest income	1,490	501	3,310	1,388
Other income (expense), net	829	666	638	1,384
Income before income taxes	11,930	26,561	19,051	70,048
Provision for income taxes	2,780	5,767	9,541	18,678
Net income	9,150	20,794	9,510	51,370
Net loss attributable to non-controlling interest	(799)	0	(799)	0
Net income attributable to NETGEAR, Inc.	$ 9,949	$ 20,794	$ 10,309	$ 51,370
Net income per share attributable to NETGEAR Inc.:
Basic (in dollars per share)	$ 0.31	$ 0.66	$ 0.33	$ 1.59
Diluted (in dollars per share)	$ 0.30	$ 0.64	$ 0.31	$ 1.54
Weighted average shares used to compute net income per share attributable to NETGEAR Inc.:
Basic (in shares)	31,802	31,704	31,634	32,335
Diluted (in shares)	32,974	32,393	32,826	33,269

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 9,150	$ 20,794	$ 9,510	$ 51,370
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on derivative instruments	48	22	864	(7,678)
Unrealized gains (losses) on available-for-sale securities	41	41	72	(41)
Other comprehensive income (loss), before tax	89	63	936	(7,719)
Tax benefit (provision) related to derivative instruments	(8)	0	(84)	1,005
Tax benefit (provision) related to available-for-sale securities	(10)	(15)	(37)	14
Other comprehensive income (loss), net of tax	71	48	815	(6,700)
Comprehensive income	9,221	20,842	10,325	44,670
Comprehensive loss attributable to non-controlling interest	(797)	0	(797)	0
Comprehensive income attributable to NETGEAR, Inc.	$ 10,018	$ 20,842	$ 11,122	$ 44,670

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total NETGEAR Stockholder's Equity	Non-controlling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoptions of new accounting guidance, net of tax	$ 92		$ 327		$ (235)
Beginning balance, shares outstanding (in shares) at Dec. 31, 2016		32,958,000
Beginning balance at Dec. 31, 2016	796,819	$ 33	566,307	$ 1,938	228,541
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	(1,501)			(1,501)
Net income attributable to NETGEAR, Inc.	15,994				15,994
Stock-based compensation	5,128		5,128
Restricted stock unit withholdings (in shares)		(38,000)
Restricted stock unit withholdings	(1,936)				(1,936)
Issuance of common stock under stock-based compensation plans (in shares)		246,000
Issuance of common stock under stock-based compensation plans	5,100		5,100
Repurchases of common stock (in shares)		(213,000)
Repurchases of common stock	(11,631)				(11,631)
Ending balance, shares outstanding (in shares) at Apr. 02, 2017		32,953,000
Ending balance at Apr. 02, 2017	808,030	$ 33	576,862	402	230,733
Beginning balance, shares outstanding (in shares) at Dec. 31, 2016		32,958,000
Beginning balance at Dec. 31, 2016	796,819	$ 33	566,307	1,938	228,541
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to NETGEAR, Inc.	51,370
Net loss attributable to non-controlling interest	$ 0
Restricted stock unit withholdings (in shares)	(127,000)
Repurchases of common stock (in shares)	(1,800,000)
Repurchases of common stock	$ (86,600)
Ending balance, shares outstanding (in shares) at Oct. 01, 2017		31,731,000
Ending balance at Oct. 01, 2017	776,515	$ 32	594,215	(4,762)	187,030
Beginning balance, shares outstanding (in shares) at Apr. 02, 2017		32,953,000
Beginning balance at Apr. 02, 2017	808,030	$ 33	576,862	402	230,733
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in unrealized gains and losses on available-for-sale securities, net of tax	(18)			(18)
Change in unrealized gains and losses on derivatives, net of tax	(5,194)			(5,194)
Net income attributable to NETGEAR, Inc.	14,582				14,582
Stock-based compensation	5,701		5,701
Restricted stock unit withholdings (in shares)		(81,000)
Restricted stock unit withholdings	(3,713)				(3,713)
Issuance of common stock under stock-based compensation plans (in shares)		315,000
Issuance of common stock under stock-based compensation plans	1,534		1,534
Repurchases of common stock (in shares)		(929,000)
Repurchases of common stock	(45,000)	$ (1)			(44,999)
Ending balance, shares outstanding (in shares) at Jul. 02, 2017		32,258,000
Ending balance at Jul. 02, 2017	775,922	$ 32	584,097	(4,810)	196,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in unrealized gains and losses on available-for-sale securities, net of tax	26			26
Change in unrealized gains and losses on derivatives, net of tax	22			22
Net income attributable to NETGEAR, Inc.	20,794				20,794
Net loss attributable to non-controlling interest	0
Stock-based compensation	5,583		5,583
Restricted stock unit withholdings (in shares)		(8,000)
Restricted stock unit withholdings	(368)				(368)
Issuance of common stock under stock-based compensation plans (in shares)		163,000
Issuance of common stock under stock-based compensation plans	4,535		4,535
Repurchases of common stock (in shares)		(682,000)
Repurchases of common stock	(29,999)				(29,999)
Ending balance, shares outstanding (in shares) at Oct. 01, 2017		31,731,000
Ending balance at Oct. 01, 2017	776,515	$ 32	594,215	(4,762)	187,030
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoptions of new accounting guidance, net of tax	8,593				8,593	$ 8,593
Beginning balance, shares outstanding (in shares) at Dec. 31, 2017		31,320,000
Beginning balance at Dec. 31, 2017	730,485	$ 31	603,137	(851)	128,168	730,485	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in unrealized gains and losses on available-for-sale securities, net of tax	(49)			(49)		(49)
Change in unrealized gains and losses on derivatives, net of tax	631			631		631
Net income attributable to NETGEAR, Inc.	5,590				5,590	5,590
Stock-based compensation	8,150		8,150			8,150
Restricted stock unit withholdings (in shares)		(38,000)
Restricted stock unit withholdings	(2,271)				(2,271)	(2,271)
Issuance of common stock under stock-based compensation plans (in shares)		252,000
Issuance of common stock under stock-based compensation plans	4,590	$ 1	4,589			4,590
Ending balance, shares outstanding (in shares) at Apr. 01, 2018		31,534,000
Ending balance at Apr. 01, 2018	755,719	$ 32	615,876	(269)	140,080	755,719	0
Beginning balance, shares outstanding (in shares) at Dec. 31, 2017		31,320,000
Beginning balance at Dec. 31, 2017	730,485	$ 31	603,137	(851)	128,168	730,485	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to NETGEAR, Inc.	10,309
Net loss attributable to non-controlling interest	$ (799)
Restricted stock unit withholdings (in shares)	(129,000)
Repurchases of common stock (in shares)	(200,000)
Repurchases of common stock	$ (15,000)
Ending balance, shares outstanding (in shares) at Sep. 30, 2018		31,746,000
Ending balance at Sep. 30, 2018	934,479	$ 32	785,694	(36)	124,488	910,178	24,301
Beginning balance, shares outstanding (in shares) at Apr. 01, 2018		31,534,000
Beginning balance at Apr. 01, 2018	755,719	$ 32	615,876	(269)	140,080	755,719	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in unrealized gains and losses on available-for-sale securities, net of tax	53			53		53
Change in unrealized gains and losses on derivatives, net of tax	109			109		109
Net income attributable to NETGEAR, Inc.	(5,230)				(5,230)	(5,230)
Stock-based compensation	8,970		8,970			8,970
Restricted stock unit withholdings (in shares)		(85,000)
Restricted stock unit withholdings	(4,897)				(4,897)	(4,897)
Issuance of common stock under stock-based compensation plans (in shares)		332,000
Issuance of common stock under stock-based compensation plans	1,012		1,012			1,012
Ending balance, shares outstanding (in shares) at Jul. 01, 2018		31,781,000
Ending balance at Jul. 01, 2018	755,736	$ 32	625,858	(107)	129,953	755,736	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in unrealized gains and losses on available-for-sale securities, net of tax	31			31		31
Change in unrealized gains and losses on derivatives, net of tax	40			40		40
Net income attributable to NETGEAR, Inc.	9,949				9,949	9,949
Net loss attributable to non-controlling interest	(799)						(799)
Stock-based compensation	8,612		8,612			8,612
Stock-based compensation expense for subsidiary shares	942						942
Sale of Arlo's common stock	170,246		146,088			146,088	24,158
Restricted stock unit withholdings (in shares)		(6,000)
Restricted stock unit withholdings	(414)				(414)	(414)
Issuance of common stock under stock-based compensation plans (in shares)		176,000
Issuance of common stock under stock-based compensation plans	5,136		5,136			5,136
Repurchases of common stock (in shares)		(205,000)
Repurchases of common stock	(15,000)				(15,000)	(15,000)
Ending balance, shares outstanding (in shares) at Sep. 30, 2018		31,746,000
Ending balance at Sep. 30, 2018	$ 934,479	$ 32	$ 785,694	$ (36)	$ 124,488	$ 910,178	$ 24,301

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Cash flows from operating activities:
Net income	$ 9,510,000	$ 51,370,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17,588,000	20,219,000
Purchase premium amortization/discount accretion on investments, net	(536,000)	102,000
Stock-based compensation	26,674,000	16,412,000
Impairment charges on investment	1,400,000	0
Deferred income taxes	(1,574,000)	(66,000)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable	60,148,000	18,248,000
Inventories	(86,230,000)	(1,216,000)
Prepaid expenses and other assets	(21,389,000)	5,557,000
Accounts payable	54,745,000	(20,016,000)
Accrued employee compensation	3,417,000	(12,595,000)
Other accrued liabilities	8,844,000	11,275,000
Deferred revenue	11,691,000	11,969,000
Income taxes payable	(10,432,000)	173,000
Net cash provided by operating activities	73,856,000	101,432,000
Cash flows from investing activities:
Purchases of short-term investments	(109,931,000)	(101,951,000)
Proceeds from maturities of short-term investments	102,054,000	101,544,000
Purchases of property and equipment	(19,883,000)	(9,805,000)
Proceeds from sale of investment	624,000	0
Purchases of investments	0	(2,900,000)
Payments made in connection with business acquisition, net of cash acquired	(14,352,000)	(737,000)
Net cash used in investing activities	(41,488,000)	(13,849,000)
Cash flows from financing activities:
Proceeds from Arlo initial public offering, net of offering costs	170,246,000	0
Repurchases of common stock	(15,000,000)	(86,630,000)
Restricted stock unit withholdings	(7,582,000)	(6,017,000)
Proceeds from exercise of stock options	5,184,000	6,405,000
Proceeds from issuance of common stock under employee stock purchase plan	5,554,000	4,764,000
Net cash provided by (used in) financing activities	158,402,000	(81,478,000)
Net increase in cash and cash equivalents	190,770,000	6,105,000
Cash and cash equivalents, at beginning of period	202,870,000	240,468,000
Cash and cash equivalents, at end of period	393,640,000	246,573,000
Non-cash investing and financing activities:
Additions to property and equipment included in accounts payable and other accrued liabilities	4,472,000	797,000
Estimated fair value of a facility under build-to-suit lease in other accrued liabilities	21,858,000	0
Estimated fair value of contingent consideration in connection with business acquisition in other accrued liabilities	$ 5,953,000	$ 0

The Company and Basis of Presen

The Company and Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation NETGEAR, Inc. (“NETGEAR” or the “Company”) was incorporated in Delaware in January 1996. The Company is a global company that delivers innovative networking and Internet connected products to consumers and growing businesses. 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 devices that create and extend wired and wireless networks as well as devices that provide a special function and attach to the network, such as IP security cameras and home automation devices and services. These products are available in multiple configurations to address the changing needs of the customers in each geographic region in which the Company's products are sold. The Company operates and reports in three segments: Arlo, Connected Home, and Small and Medium Business ("SMB"). The Arlo segment is included within a majority-owned, publicly traded subsidiary, Arlo Technologies, Inc. (“Arlo”) upon the completion of Arlo’s initial public offering (the "IPO") on August 7, 2018. See Note 4, Planned Separation of Arlo, for details relating to the IPO. The accompanying unaudited condensed consolidated financial statements include the accounts of NETGEAR, Inc. and its wholly owned subsidiaries, as well as those of its 84.2% interest in Arlo. They have been prepared in accordance with established guidelines for interim financial reporting and with the instructions of Form 10-Q and Article 10 of Regulation S-X. All significant intercompany balances and transactions have been eliminated in consolidation. The resulting non-controlling interest’s share in the equity of Arlo is presented as a separate component of stockholders’ equity in the unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of stockholders’ equity, and the net income (loss) attributable to the non-controlling interest is presented in the unaudited condensed consolidated statements of operations and statements of comprehensive income. The balance sheet dated December 31, 2017 has been derived from audited financial statements at such date. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and footnotes typically found in the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments considered necessary (consisting only of normal recurring adjustments) to fairly state the Company’s financial position, results of operations, comprehensive income, stockholder's equity and cash flows for the periods indicated. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . The Company’s fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its interim results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of net revenue and expenses during the reported period. Actual results could differ materially from those estimates and operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any future period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The Company's significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . Refer to Note 3. Revenue Recognition , for the updated accounting policy of revenue recognition upon the adoption of ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606) as of January 1, 2018. Recent accounting pronouncements Accounting Pronouncements Recently Adopted ASU 2014-09 In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition ("ASC 605") is superseded by Topic 606 ("ASC 606"). ASC 606 requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. On January 1, 2018, the Company adopted ASC 606 and applied this guidance to the contracts which were not completed at the date of adoption using the modified retrospective method. Refer to Note 3. Revenue Recognition , for further details. ASU 2016-01 In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities" (Subtopic 825-10), which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income. This guidance simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. This guidance also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company adopted the guidance effectively January 1, 2018. The adoption did not have a material impact to the Company. The Company believes the most significant impact will be that the adoption of the new guidance could increase the volatility of its Other income (expense), net, as a result of the re-measurement of its equity investments without readily determinable fair values upon the occurrence of observable price changes and impairments. ASU 2016-15 In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments" (Topic 230), which clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The adoption of the guidance is required to be applied retrospectively and is effective for the Company in the first fiscal quarter of 2018. The Company adopted the guidance effectively January 1, 2018 and applied to the business combination transactions occurring on or after the adoption date. The adoption did not have material impacts on its financial position, results of operations or cash flows. ASU 2016-16 In October 2016, the FASB issued ASU 2016-16, "Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory" (Topic 740), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This removes the exception to postpone recognition until the asset has been sold to an outside party. ASU 2016-16 is effective for the Company in the first fiscal quarter of 2018 and early adoption is permitted. The Company adopted the new standard effectively January 1, 2018. Upon adoption, the Company has recorded a deferred tax asset of $21.1 million resulting from differences in the tax basis of assets and the consolidated book basis of assets resulting from intra-entity transfers of intangible assets. The recognition of the deferred tax asset resulted in an increase to retained earnings upon adoption. Further, the Company estimates that adoption of the standard will increase tax expense by an approximate $1.3 million in 2018, but fluctuate over time due to different lives of the intangibles. There is no material impact on the Company's cash flows. ASU 2017-01 In January 2017, the FASB issued ASU 2017-01, "Business Combinations: Clarifying the Definition of a Business" (Topic 805), which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The Company adopted the guidance effectively January 1, 2018 and applied prospectively to the transactions occurring on or after the adoption date. The adoption did not have material impacts on its financial position, results of operations or cash flows. ASU 2017-12 In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities" (Topic 815), which expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance also makes certain targeted improvements to simplify the application of hedge accounting guidance, ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness and ease the reporting on hedge ineffectiveness. ASU 2017-12 is effective for the Company in the first fiscal quarter of 2019 and early adoption is permitted. Entities should apply the guidance to existing cash flow and net investment hedge relationships using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings on the date of adoption. The guidance also provides transition relief to make it easier for entities to apply certain amendments to existing hedges where the hedge documentation needs to be modified. The Company early adopted the new guidance effectively January 1, 2018. The adoption did not impact opening retained earnings or have a material impact on the Company's consolidated financial statements. Additionally, upon adoption, the Company simplified its hedge accounting application by electing to include time value on currency cash flow hedge relationships prospectively. ASU 2018-02 In February 2018, the FASB issued ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which permits companies to reclassify tax effects stranded in Accumulated Other Comprehensive Income as a result of tax reform to retained earnings. ASU 2018-02 is effective for the Company in the first fiscal quarter of 2019 and early adoption is permitted. Entities have the option to reclassify these amounts rather than require reclassification and also have the option to apply the guidance retrospectively or at the beginning of the period of adoption. The Company early adopted the new guidance effectively January 1, 2018. Upon adoption, the Company has recognized immaterial adjustments to retained earnings at the beginning of the period of adoption. Accounting Pronouncements Not Yet Effective ASU 2016-02 In February 2016, FASB issued ASU 2016-02, "Leases" (Topic 842), which requires lessees to recognize on the balance sheets a right-of-use asset, representing its right to use the underlying asset for the lease term, and a corresponding lease liability for all leases with terms greater than twelve months. The liability will be equal to the present value of lease payments while the right-of-use asset will be based on the liability, subject to adjustment, such as for initial direct costs. In addition, ASU 2016-02 expands the disclosure requirements for lessees. Upon adoption, the Company will be required to record a lease asset and lease liability related to its operating leases. The new standard requires a modified retrospective transition through a cumulative-effect adjustment as of the beginning of the earliest period presented in the financial statements, although the FASB recently approved an option for transition relief to not restate or make required disclosures under the new standard in comparative periods in the period of adoption. ASU 2016-02 is effective for the Company in the first fiscal quarter of 2019, with early adoption permitted. The Company will adopt the new standard effective January 1, 2019 and will elect to utilize the FASB recently approved option for transition relief and adopt the modified retrospective transition through a cumulative-effect adjustment as of the adoption date. In accordance with the transition relief, the Company will not restate or make required disclosures under the new standard in comparative periods in the period of adoption. While the Company is currently evaluating the impact of the adoption of ASU 2016-02, based on the lease portfolio as of September 30, 2018, the most significant impact will be the recognition of right-of-use ("ROU") assets in the range of $45 million to $55 million , and lease liabilities in the range of $50 million to $60 million on its statement of financial position for operating leases, with limited impact to its results of operations and cash flows. $11 million to $14 million of the expected ROU assets and $12 million to $15 million of the expected lease liabilities are attributable to Arlo based on its lease portfolio as of September 30, 2018, exclusive of the build-to-suite lease arrangement relating to Arlo's San Jose Corporate headquarters. However, the ultimate impact of adopting ASU 2016-02 will depend on the Company’s lease portfolio as of the adoption date. The Company has selected lease software to assist with the adoption and commenced implementation. The Company expects to complete the adoption, including implementing processes and procedures, completing the lease accounting software implementation, and evaluating necessary disclosures prior to the first fiscal quarter of 2019. ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" (Topic 326), which replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. Credit losses on available-for-sale debt securities with unrealized losses will be recognized as allowances for credit losses limited to the amount by which fair value is below amortized cost. ASU 2016-13 is effective for the Company beginning in the first fiscal quarter of 2020 and early adoption is permitted. T he Company continues to assess the potential impact of the new guidance, but does not expect it to have material impacts on its financial position, results of operations or cash flows. ASU 2018-15 In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for the Company beginning in the first fiscal quarter of 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company's financial position, results of operations or cash flows.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Adoption of ASC 606 On January 1, 2018, the Company adopted ASC 606 and applied this guidance to those contracts which were not completed at the date of adoption using the modified retrospective method. The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods (ASC 605). The adoption did not have a significant impact to the nature and timing of the Company's revenues, results of operations, cash flows and statement of financial position. The majority of sales revenue continues to be recognized when control of the product transfers to a customer upon shipment or delivery. The primary impact of adopting ASC 606 relates to the establishment of liability estimates for channel rebates and discounts upon revenue recognition on the basis of customary business practice. Under ASC 606, the Company is required to estimate for rebates and discounts ahead of commitment date if customary business practice creates an implied expectation that such activities will occur in the future. The Company utilizes channel rebates and discounts to stimulate end user demand. Consequently, this change in guidance results in an adjustment to the statement of financial position to accelerate the recording of a liability for yet to be committed channel marketing rebates and discounts upon adoption. Further, under ASC 606, deferred revenue balances are to be booked at an amount that reflects only the amounts expected to be received for future obligations. As such, an adjustment was made to allocate variable consideration to deferred revenue. Additionally, the balance sheet presentation of certain reserve balances previously shown net within accounts receivable are now presented as refund liabilities within current liabilities and deferrals for undelivered shipments with destination shipping terms are now removed from receivables and deferred revenue. The following table summarizes the impacts of adopting ASC 606 on the Company’s unaudited condensed consolidated balance sheets for the fiscal year beginning January 1, 2018 as an adjustment to the opening balances: As of Adjustments As of December 31, January 1, (In thousands) Assets: Accounts receivable, net $ 412,798 $ 6,113 $ 418,911 Inventories $ 245,894 $ (2,368 ) $ 243,526 Other non-current assets $ 61,789 $ 4,344 $ 66,133 Liabilities: Accounts payable $ 111,915 $ (156 ) $ 111,759 Other accrued liabilities $ 222,470 $ 45,481 $ 267,951 Deferred revenue $ 55,284 $ (25,181 ) $ 30,103 Income taxes payable $ 7,015 $ 724 $ 7,739 Other non-current liabilities $ 22,099 $ (276 ) $ 21,823 Stockholders’ equity: Retained earnings $ 128,168 $ (12,503 ) $ 115,665 The following table summarizes the impacts of adopting ASC 606 on the Company’s unaudited condensed consolidated balance sheets as of September 30, 2018: As of September 30, 2018 As reported Adjustments Balance without adoption of ASC 606 (In thousands) Assets Accounts receivable, net $ 358,982 $ (13,147 ) $ 345,835 Inventories $ 330,516 $ 2,491 $ 333,007 Other non-current assets $ 94,047 $ (3,573 ) $ 90,474 Liabilities: Accounts payable $ 168,155 $ 110 $ 168,265 Other accrued liabilities $ 282,410 $ (53,196 ) $ 229,214 Deferred revenue $ 35,485 $ 18,326 $ 53,811 Income taxes payable $ 6,853 $ 1,554 $ 8,407 Other non-current liabilities $ 53,499 $ 1,884 $ 55,383 Stockholders’ equity: Retained earnings $ 124,488 $ 16,761 $ 141,249 Non-controlling interest $ 24,301 $ 332 $ 24,633 The following tables summarize the impacts of adopting ASC 606 on the Company’s unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2018: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As reported Adjustments Balance without adoption of ASC 606 As reported Adjustments Balance without adoption of ASC 606 (In thousands) (In thousands) Net revenue $ 400,586 $ 2,278 $ 402,864 $ 1,112,379 $ 5,974 $ 1,118,353 Cost of revenue $ 276,394 $ (569 ) $ 275,825 $ 774,510 $ (123 ) $ 774,387 Gross profit $ 124,192 $ 2,847 $ 127,039 $ 337,869 $ 6,097 $ 343,966 Provision for income taxes $ 2,780 $ 744 $ 3,524 $ 9,541 $ 1,507 $ 11,048 Net income $ 9,150 $ 2,103 $ 11,253 $ 9,510 $ 4,590 $ 14,100 Net Income (loss) attributable to non-controlling interest $ (799 ) $ 332 $ (467 ) $ (799 ) $ 332 $ (467 ) Net income attributable to NETGEAR, Inc. $ 9,949 $ 1,771 $ 11,720 $ 10,309 $ 4,258 $ 14,567 Revenue Recognition Accounting Policy Revenue Recognition Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration, the Company expects to be entitled to in exchange for those goods or services. The majority of revenue comes from product sales, consisting of sales of Arlo, Connected Home and Small and Medium Business ("SMB") hardware products to customers (retailers, distributors and service providers). Revenue is recognized at a point in time when control of the goods are transferred to the customer, generally occurring upon shipment or delivery dependent upon the terms of the underlying contract. The amount recognized reflects the consideration the Company expects to be entitled to in exchange for the transferred goods. The Company sells subscription paid services, such as to its Arlo end user customers where it provides customers access to its cloud services. Revenue for subscription sales is generally recognized over time on a ratable basis over the contract term beginning on the date that the service is made available to the customers at the time of registration. The subscription contracts are generally for 30 days or 12 months in length, billed in advance. Additionally, the Company sells technical support services and extended warranty which consist of telephone and internet access to technical support personnel, hardware replacement and updates to software features. All such service or support sales are typically recognized using an output measure of progress by looking at the time elapsed as the contracts generally provide the customer equal benefit throughout the contract period because the Company transfers control evenly by providing a stand-ready service. The Company also sells services bundled with hardware products and accounts for these sales in line with the multiple performance obligations guidance. Revenue from all sales types is recognized at transaction price, the amount the Company expects to be entitled to in exchange for transferring goods or providing services. Transaction price is calculated as selling price net of variable consideration which may include estimates for future returns, sales incentives and price protection related to current period product revenue. The Company’s standard obligation to its direct customers generally provides for a full refund in the event that such product is not merchantable or is found to be damaged or defective. In determining estimates for future returns, the Company estimates variable consideration at the expected value amounts which is based on management's analysis of historical data, channel inventory levels, current economic trends and changes in customer demand for the Company's products. Sales incentives and price protection are determined based on a combination of the actual amounts committed and through estimating future expenditure based upon historical customary business practice. Typically variable consideration does not need to be constrained as estimates are based on predictive historical data or future commitments that are planned and controlled by the Company. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. Contracts with Multiple Performance Obligations Some of the Company's contracts with customers contain multiple promised goods or services. Such contracts include hardware products with bundled services, networking hardware with embedded software, various software subscription services, and support. For these contracts, the Company accounts for the promises separately as individual performance obligations if they are distinct. Performance obligations are determined to be considered distinct if they are both capable of being distinct and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract. The embedded software on most of the hardware products is not considered distinct and therefore the combined hardware and incidental software are treated as one performance obligation and recognized at the point in time when control of product transfers to the customer. Service that is included with certain hardware products, mainly Arlo systems, is considered distinct and therefore the hardware and service are treated as separate performance obligations. After identifying the separate performance obligations, the transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices are generally determined based on the prices charged to customers or using an adjusted market assessment. For Arlo systems, standalone selling price of the hardware is directly observable from add-on camera and base station sales. Standalone selling price of the service is estimated using an adjusted market approach. Revenue is then recognized for each distinct performance obligation as control is transferred to the customer. In general, the hardware is recognized at time of shipping or delivery, while services and support are delivered over the stated service or support period or the estimated useful life. For Arlo systems, the hardware is recognized at the time control of the product transfers to the customer and the transaction price allocated to service is recognized over the estimated useful life of the system, beginning when the customer is expected to activate their account. Useful life of the systems is determined by industry norms, frequency of new model releases, and user history. Warranties Hardware products regularly include warranties to the end customers that consist of bug fixes, minor updates such that the product continues to function according to published specs in a dynamic environment, and phone support. These standard warranties are assurance type warranties and do not offer any services in addition to the assurance that the product will continue working as specified. Therefore, warranties are not considered separate performance obligations in the arrangement. Instead, the expected cost of warranty is accrued as expense in accordance with authoritative guidance. Extended warranties are sold separately and include additional support services. The transaction price for extended warranties is accounted for as service revenue and recognized over the life of the contract. Shipping and Handling Shipping and handling fees billed to customers are included 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. The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. Shipping and handling costs associated with outbound freight totaled $2.6 million and $7.8 million for the three and nine months ended September 30, 2018 , respectively, and $2.4 million and $6.9 million for the three and nine months ended October 1, 2017 , respectively. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performances obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods and services for which customer purchase orders have been accepted and that are scheduled or in the process of being scheduled for shipment. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018 : 1 year 2 years Greater than 2 years Total (In thousands) Performance obligations $ 109,309 $ 13,334 $ 8,956 $ 131,599 Contract Costs Costs to fulfill a contract are capitalized when they relate directly to an existing contract or specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations and are recoverable. These costs include direct cost incurred at inception of a contract which enables the fulfillment of the performance obligation and totaled $5.4 million as of September 30, 2018. There was no impairment of capitalized contract costs in the nine months ended September 30, 2018. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in Sales and marketing and General and administrative expenses. If the incremental direct costs of obtaining a contract, which consist of sales commissions, relate to a service recognized over a period longer than one year, costs are deferred and amortized in line with the related services over the period of benefit. Deferred commissions are classified as non-current based on the original amortization period of over one year. As of September 30, 2018 deferred commissions were not significant. Contract Balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are classified as Deferred revenue on the unaudited condensed consolidated balance sheets. Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer. The following table reflects the changes in contract balances for the nine months ended September 30, 2018 : Balance Sheet Location September 30, 2018 January 1, 2018 (*) $ change % change (In thousands) Accounts receivable, net Accounts receivable, net $ 358,982 $ 418,911 $ (59,929 ) (14.3 )% Contract liabilities - current Deferred revenue $ 35,485 $ 30,103 $ 5,382 17.9 % Contract liabilities - non-current Other non-current liabilities $ 20,148 $ 13,839 $ 6,309 45.6 % _________________________ * Includes the adjustments made to the contracts which were not completed at the date of ASC 606 adoption using the modified retrospective method. During the nine months ended September 30, 2018, contract liabilities increased primarily as a result of increased sales of products containing multiple performance obligations, where cash payments were received or due in advance of satisfying the service related performance obligation. During the nine months ended September 30, 2018, $46.2 million of revenue was deferred due to unsatisfied performance obligations, primarily relating to over time service revenue. During the nine months, $34.5 million of revenue was recognized for the satisfaction of performance obligations over time. $24.1 million of this recognized revenue was included in the contract liability balance at the beginning of the period. There were no significant changes in estimates during the period that would affect the contract balances. Disaggregation of Revenue In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle-East and Africa (“EMEA”); and Asia Pacific ("APAC"). The tables also include reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in three segments: Arlo, Connected Home, and Small and Medium Business ("SMB"). Sales and usage-based taxes are excluded from net revenue. Three Months Ended September 30, 2018 October 1, 2017 (*) Arlo Connected Home SMB Total Arlo Connected Home SMB Total (In thousands) Geographic regions: Americas $ 112,851 $ 141,884 $ 34,049 $ 288,784 $ 88,134 $ 129,034 $ 27,220 $ 244,388 EMEA 11,759 27,619 25,539 64,917 17,178 22,731 22,252 62,161 APAC 6,564 25,181 15,140 46,885 5,148 31,334 12,452 48,934 Total net revenue $ 131,174 $ 194,684 $ 74,728 $ 400,586 $ 110,460 $ 183,099 $ 61,924 $ 355,483 Sales channels: Service provider $ 5,973 $ 30,769 $ 1,191 $ 37,933 $ 5,794 $ 44,631 $ 1,114 $ 51,539 Non-service provider 125,201 163,915 73,537 362,653 104,666 138,468 60,810 303,944 Total net revenue $ 131,174 $ 194,684 $ 74,728 $ 400,586 $ 110,460 $ 183,099 $ 61,924 $ 355,483 _________________________ * As noted above, prior period amounts have not been adjusted under the modified retrospective method. Nine Months Ended September 30, 2018 October 1, 2017 (*) Arlo Connected Home SMB Total Arlo Connected Home SMB Total (In thousands) Geographic regions: Americas $ 264,728 $ 422,759 $ 94,743 $ 782,230 $ 197,291 $ 396,912 $ 88,763 $ 682,966 EMEA 49,649 70,073 80,505 200,227 39,585 63,634 72,591 175,810 APAC 17,820 70,796 41,306 129,922 13,028 102,819 35,240 151,087 Total net revenue $ 332,197 $ 563,628 $ 216,554 $ 1,112,379 $ 249,904 $ 563,365 $ 196,594 $ 1,009,863 Sales channels: Service provider $ 21,951 $ 118,899 $ 2,954 $ 143,804 $ 15,743 $ 146,309 $ 2,492 $ 164,544 Non-service provider 310,246 444,729 213,600 968,575 234,161 417,056 194,102 845,319 Total net revenue $ 332,197 $ 563,628 $ 216,554 $ 1,112,379 $ 249,904 $ 563,365 $ 196,594 $ 1,009,863 _________________________ * As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Planned Separation of Arlo

Planned Separation of Arlo	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Planned Separation of Arlo	Planned Separation of Arlo On February 6, 2018, the Company announced that its Board of Directors had unanimously approved the pursuit of a separation of the Arlo business from NETGEAR (the “Separation”). On August 2, 2018, Arlo and NETGEAR announced the pricing of Arlo's initial public offering (IPO) at a price to the public of $16.00 per share, subsequently listing on the New York Stock Exchange on August 3, 2018 under the symbol "ARLO". On August 7, Arlo completed the IPO and generated proceeds of approximately $170.2 million , net of offering costs. Upon completion of the IPO, Arlo common stock outstanding amounted to 74,247,000 shares, including the exercise of the underwriters' option of 1,532,250 shares, of which NETGEAR holds 62,500,000 shares of Arlo common stock, representing approximately 84.2% of the outstanding shares of Arlo common stock . The Company presently intends to distribute its holdings of Arlo common stock prior to the end of its first quarter of 2019 to its stockholders in a manner generally intended to qualify as tax-free to its stockholders for U.S. federal income tax purposes (the “Distribution”). The Distribution is subject to market, tax and legal considerations, final approval by the Company’s Board of Directors and other customary requirements. However, the Company may abandon or change the structure of the Distribution if it determines, in its sole discretion, that the Distribution is not in the best interest of the Company or its stockholders. Prior to the completion of the Arlo IPO, NETGEAR entered into agreements with Arlo that govern the separation of Arlo's business from NETGEAR and various interim arrangements. NETGEAR provided for, among other things, the transfer from NETGEAR to Arlo of assets and the assumption by Arlo of liabilities comprising its business through a master separation agreement between NETGEAR and Arlo. In addition, the Company entered into certain other agreements that provide a framework for the relationship between NETGEAR and Arlo after the separation, including a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property rights cross-license agreement, and a registration rights agreement. The Company incurred Separation expense of $7.1 million and $25.8 million during the three and nine months ended September 30, 2018, respectively, and $27.3 million since commencement in December 2017 to date. Separation expense primarily consists of third-party advisory, consulting, legal and professional services, IT costs and employee bonuses directly related to the separation, as well as other items that are incremental and one-time in nature that are related to the separation.

Business Acquisition

Business Acquisition	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Business Acquisition	Business Acquisition Meural Inc. On August 6, 2018 , the Company acquired Meural Inc. ("Meural"), a New York based startup focused on producing and developing hardware and cloud platform capabilities for the digital distribution of curated artwork. Meural aims to provide a premium product to customers and to complement sales of digital canvasses with subscription services by offering customers the ability to subscribe to a large library of curated artworks. The Company believes that the acquisition of Meural will enable the Company to expand its portfolio of hardware and service offerings. Prior to the business acquisition, the Company had a strategic investment in Meural since 2017. The total purchase consideration was $22.2 million , which consisted of $14.4 million of cash, which was paid in the third quarter of 2018, $1.5 million due to the Company's settlement in its prior equity interest in Meural, and the acquisition date fair value of contingent consideration of $6.3 million . The merger agreement provides for the payment of contingent consideration to each selling shareholder of Meural based on the achievement of certain technical and service revenue milestones through August 6, 2023, with a maximum payout of $3.5 million on each of two milestones. The valuation of the contingent consideration was derived using estimates of the probability of achievement within specified time periods, in a scenario based model for the technical milestone; and using an option pricing model in a risk neutral framework using a Monte Carlo simulation, based on projections of future service revenues for the service revenue milestone. The fair value of such contingent consideration payable to Meural’s external shareholders is determined to be $5.9 million a nd is included in Other non-current liabilities on the unaudited condensed consolidated balance sheets. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. The results of Meural have been included in the unaudited condensed 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 preliminary purchase price allocation is subject to certain post-closing adjustments and was as follows (in thousands) : Cash and cash equivalents 20 Accounts receivable 219 Inventories 760 Prepaid expenses and other current assets 500 Property and equipment 16 Intangibles 4,700 Non-current deferred income taxes 815 Goodwill 16,502 Accounts payable (1,322 ) Other accrued liabilities (35 ) Total purchase price 22,175 The preliminary $16.5 million of goodwill recorded on the acquisition of Meural is not deductible for U.S. federal or U.S. state income tax purposes. T he goodwill was generated as a result of the anticipated synergies, expected to be derived through selling Meural’s products and services through NETGEAR’s established worldwide sales channel and customer base. The goodwill was assigned to the Company's Connected Home segment. In connection with the acquisition, the Company recorded $0.8 million of preliminary deferred tax assets net of deferred tax liabilities. The deferred tax assets were recorded for the tax benefit of the net operating losses as of the date of the acquisition after consideration of limitations on their use under U.S. Internal Revenue Code section 382. The deferred tax assets were reduced by deferred tax liabilities for the book basis of intangible assets for which the Company has no tax basis. The Company preliminarily designated $3.0 million of the acquired intangibles as developed technology. T he valuation was derived using an income approach, based on the present value of the estimated future cash flows derived from projections of future operations attributable to the developed technology, discounted at a rate of 16.0% and will be amortized over an estimated useful life of seven years . The Company preliminarily designated $0.6 million of the acquired intangibles as trade name, $0.6 million of the acquired intangibles as customer relationship and $0.5 million of the acquired intangibles as playlist database. These valuation of these intangibles was derived using variations of the income approach for the trade name and customer relationships, and replacement cost method for the playlist database. The valuations are based on certain key assumptions like the royalty rate, revenue and cash flows derived from projections of future operations and discount rates ranging from 16.0% to 19.0% . The intangibles assets are being amortized over estimated useful lives of three years , two years and seven years for trade name, customer relationships and playlist database, respectively. Placemeter, Inc. On November 30, 2016 , the Company acquired Placemeter, Inc. ("Placemeter"), an industry leader in computer vision analytics, for total purchase consideration of $9.6 million . The Company believes that Placemeter’s engineering talent will add value to NETGEAR’s Arlo smart security team, and that their proprietary computer vision algorithms will help to build video analytics solutions for the Arlo platform. The Company paid $8.8 million of the aggregate purchase price in the fourth quarter of 2016 and paid the remaining $0.8 million in the first fiscal quarter of 2017. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. The results of Placemeter have been included in the unaudited condensed 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): Cash and cash equivalents $ 8 Accounts receivable 11 Prepaid expenses and other current assets 130 Property and equipment 83 Intangibles 6,000 Goodwill 3,742 Accounts payable (40 ) Other accrued liabilities (74 ) Deferred tax liabilities (308 ) Total purchase price $ 9,552 The $3.7 million of goodwill recorded on the acquisition of Placemeter is not deductible for U.S. federal or U.S. state income tax purposes. The goodwill recognized, which was assigned to the Company's former retail segment upon acquisition and was allocated to the Arlo segment under its current reporting structure, is primarily attributable to expected synergies resulting from the acquisition. In connection with the acquisition, the Company recorded $0.3 million of deferred tax liabilities net of deferred tax assets. The deferred tax liabilities were recorded for the book basis of intangible assets for which the Company has no tax basis. The deferred tax liabilities are reduced by the tax benefit of the net operating losses as of the date of the acquisition after consideration of limitations on their use under U.S. Internal Revenue Code section 382. The Company designated $5.5 million of the acquired intangibles as software technology and a further $0.2 million of the acquired intangibles as database. The valuations were derived using the replacement cost method, with consideration given to the estimated time, investment and resources required to recreate the acquired intangibles. A discount rate of 15.0% was used in the valuation of each intangible. The acquired intangibles are being amortized over an estimated useful life of four years . The Company designated $0.3 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 20.0% . The acquired agreements are being amortized over an estimated useful life of three years .

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Balance Sheet Components Available-for-sale short-term investments As of September 30, 2018 December 31, 2017 Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) U.S. treasuries $ 133,239 $ — $ (75 ) $ 133,164 $ 124,816 $ — $ (146 ) $ 124,670 Certificates of deposit 152 — — 152 162 — — 162 Total $ 133,391 $ — $ (75 ) $ 133,316 $ 124,978 $ — $ (146 ) $ 124,832 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 twelve months. Equity investments without readily determinable fair values As noted above, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities" on January 1, 2018. The Company's equity investments without determinable fair values amounted to $1.6 million as of September 30, 2018 and $4.5 million as of December 31, 2017, and are included in Other non-current assets in the unaudited condensed consolidated balance sheets. The Company does not have a controlling interest or the ability to exercise significant influence over these investees and these investments do not have readily determinable fair values. Equity investments without readily determinable fair values are accounted for at cost, less impairment and adjusted for subsequent observable price changes obtained from orderly transactions for identical or similar investments issued by the same investee. Such changes in the basis of the equity investment are recognized in Other income (expense), net in the unaudited condensed consolidated statements of operations. $1.4 million of impairment charges were recognized during the nine months ended September 30, 2018 and there were no impairments recognized during the nine months ended October 1, 2017 . Accounts receivable, net As of September 30, December 31, (In thousands) Gross accounts receivable $ 360,237 $ 437,891 Allowance for doubtful accounts (1,255 ) (1,257 ) Allowance for sales returns — * (20,189 ) Allowance for price protection — * (3,647 ) Total allowances (1,255 ) (25,093 ) Total accounts receivable, net $ 358,982 $ 412,798 _________________________ * Upon adoption of ASC 606, allowances for sales returns and price protection were reclassified to current liabilities as these reserve balances are considered refund liabilities. Refer to Note 3. Revenue Recognition , for additional information on the adoption impact. Inventories As of September 30, December 31, (In thousands) Raw materials $ 2,072 $ 4,465 Finished goods 328,444 241,429 Total inventories $ 330,516 $ 245,894 The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions. 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 September 30, December 31, (In thousands) Computer equipment $ 13,127 $ 10,114 Furniture, fixtures and leasehold improvements 21,811 21,640 Software 36,883 28,997 Machinery and equipment 66,426 62,490 Construction in progress* 21,858 — Total property and equipment, gross 160,105 123,241 Accumulated depreciation and amortization (103,458 ) (102,581 ) Total property and equipment, net $ 56,647 $ 20,660 * Arlo Technologies, Inc. entered into a build-to-suit lease arrangement in relation to its headquarters in San Jose, California. Refer to Note 10, Commitments and Contingencies , for details of this lease. The construction is expected to be completed in January 2019. Depreciation and amortization expense pertaining to property and equipment was $3.6 million and $10.2 million for the three and nine months ended September 30, 2018 , respectively, and $3.3 million and $9.8 million for the three and nine months ended October 1, 2017 , respectively. Intangibles, net As of September 30, 2018 As of December 31, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (In thousands) Technology $ 69,599 $ (63,691 ) $ 5,908 $ 66,599 $ (62,172 ) $ 4,427 Customer contracts and relationships 57,100 (42,749 ) 14,351 56,500 (37,430 ) 19,070 Other 12,145 (10,063 ) 2,082 11,045 (9,554 ) 1,491 Total intangibles, net $ 138,844 $ (116,503 ) $ 22,341 $ 134,144 $ (109,156 ) $ 24,988 Amortization of intangibles was $2.4 million and $7.3 million for the three and nine months ended September 30, 2018 , respectively, and $2.7 million and $10.4 million for the three and nine months ended October 1, 2017 , respectively. As of September 30, 2018 , estimated amortization expense related to finite-lived intangibles for the remaining years was as follows (in thousands): 2018 (remaining three months) $ 2,466 2019 8,544 2020 7,497 2021 2,029 2022 513 Thereafter 1,292 Total estimated amortization expense $ 22,341 Other non-current assets As of September 30, December 31, 2017 (In thousands) Non-current deferred income taxes $ 75,674 $ 49,468 Other 18,373 12,321 Total other non-current assets $ 94,047 $ 61,789 Other accrued liabilities As of September 30, December 31, (In thousands) Sales and marketing $ 116,901 $ 96,153 Warranty obligation 18,526 * 75,824 Sales returns 78,014 * — Freight 8,108 10,567 Other 60,861 39,926 Total other accrued liabilities $ 282,410 $ 222,470 _________________________ * Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2018
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 or 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 sheets at fair value. Cash flow hedge gains and losses are recorded in other comprehensive income ("OCI") until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in Other income (expense), net in the unaudited condensed consolidated statements of operations. The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of September 30, 2018 and December 31, 2017 are summarized as follows: Derivative Assets Balance Sheet Location September 30, 2018 December 31, 2017 Balance Sheet Location September 30, 2018 December 31, 2017 (In thousands) (In thousands) Derivative assets not designated as hedging instruments Prepaid expenses and other current assets $ 995 $ 1,314 Other accrued liabilities $ 189 $ 7,128 Derivative assets designated as hedging instruments Prepaid expenses and other current assets 33 485 Other accrued liabilities 20 1,064 Total $ 1,028 $ 1,799 $ 209 $ 8,192 Refer to Note 14, Fair Value Measurements, for detailed disclosures regarding fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures. Offsetting Derivative Assets and Liabilities The Company has entered into master netting arrangements which allow net settlements under certain conditions. Although netting is permitted, it is currently the Company's policy and practice to record all derivative assets and liabilities on a gross basis in the unaudited condensed consolidated balance sheets. The following tables set forth the offsetting of derivative assets as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) HSBC $ 272 $ — $ 272 $ (59 ) $ — $ 213 Bank of America 62 — 62 (10 ) — 52 Wells Fargo 694 — 694 (140 ) — 554 Total $ 1,028 $ — $ 1,028 $ (209 ) $ — $ 819 As of December 31, 2017 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) Bank of America $ 1,664 $ — $ 1,664 $ (1,664 ) $ — $ — Wells Fargo 135 — 135 (135 ) — — Total $ 1,799 $ — $ 1,799 $ (1,799 ) $ — $ — The following tables set forth the offsetting of derivative liabilities as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) HSBC $ 59 $ — $ 59 $ (59 ) $ — $ — Bank of America $ 10 $ — $ 10 $ (10 ) $ — $ — Wells Fargo 140 — 140 (140 ) — — Total $ 209 $ — $ 209 $ (209 ) $ — $ — As of December 31, 2017 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) Bank of America $ 7,815 $ — $ 7,815 $ (1,664 ) $ — $ 6,151 Wells Fargo 377 — 377 (135 ) — 242 Total $ 8,192 $ — $ 8,192 $ (1,799 ) $ — $ 6,393 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 less than six months. The Company enters into about ten forward contracts per quarter with an average size of approximately $7.0 million USD equivalent related to its cash flow hedging program. The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the three months ended September 30, 2018 are summarized as follows: Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges Three Months Ended September 30, 2018 Net revenue Cost of revenue Research and development Sales and marketing General and administrative (In thousands) Statements of operations $ 400,586 $ 276,394 $ 35,253 $ 49,005 $ 23,268 Gains (losses) on cash flow hedge $ 1,031 $ (7 ) $ 2 $ (138 ) $ (41 ) The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the nine months ended September 30, 2018 are summarized as follows: Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges Nine Months Ended September 30, 2018 Net revenue Cost of revenue Research and development Sales and marketing General and administrative (In thousands) Statements of operations $ 1,112,379 $ 774,510 $ 95,571 $ 139,646 $ 60,354 Gains (losses) on cash flow hedge $ 246 $ (8 ) $ 88 $ (65 ) $ (50 ) The Company expects to reclassify to earnings all of the amounts recorded in OCI associated with its cash flow hedges over the next twelve months. OCI associated with cash flow hedges of foreign currency revenue is recognized as a component of net revenue in the same period 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 expenses in the same period and in the same statements of operations line item as the related costs of revenue and operating expenses are recognized. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur within the designated hedge period or if not recognized within 60 days following the end of the hedge period. Deferred gains and losses in OCI with such derivative instruments are reclassified immediately into earnings through Other income (expense), net. Any subsequent changes in fair value of such derivative instruments also are reflected in current earnings unless they are re-designated as hedges of other transactions. The Company did not recognize any material net gains or losses related to the loss of hedge designation as there were no discontinued cash flow hedges during the nine months ended September 30, 2018 and October 1, 2017 . The pre-tax effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2018 and October 1, 2017 are summarized as follows: Derivatives Designated as Hedging Instruments Three Months Ended September 30, 2018 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ 895 Net revenue $ 1,031 Foreign currency forward contracts — Cost of revenue (7 ) Foreign currency forward contracts — Research and development 2 Foreign currency forward contracts — Sales and marketing (138 ) Foreign currency forward contracts — General and administrative (41 ) Total $ 895 $ 847 _________________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended September 30, 2018 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ 1,075 Net revenue $ 246 Foreign currency forward contracts — Cost of revenue (8 ) Foreign currency forward contracts — Research and development 88 Foreign currency forward contracts — Sales and marketing (65 ) Foreign currency forward contracts — General and administrative (50 ) Total $ 1,075 $ 211 _________________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Three Months Ended October 1, 2017 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ (3,538 ) Net revenue $ (4,401 ) Foreign currency forward contracts — Cost of revenue 19 Foreign currency forward contracts — Research and development 84 Foreign currency forward contracts — Sales and marketing 629 Foreign currency forward contracts — General and administrative 109 Total $ (3,538 ) $ (3,560 ) _______________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended October 1, 2017 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ (10,590 ) Net revenue $ (3,374 ) Foreign currency forward contracts — Cost of revenue 5 Foreign currency forward contracts — Research and development 10 Foreign currency forward contracts — Sales and marketing 380 Foreign currency forward contracts — General and administrative 67 Total $ (10,590 ) $ (2,912 ) _______________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Non-designated hedges The Company enters into non-designated hedges under the authoritative guidance for derivatives and hedging to manage the exposure of non-functional currency monetary assets and liabilities held on its financial statements to fluctuations in foreign currency exchange rates, as well as to reduce volatility in other income and expense. The non-designated hedges are generally expected to offset the changes in value of its net non-functional currency asset and liability position resulting from foreign exchange rate fluctuations. Foreign currency denominated accounts receivable and payable are hedged with non-designated hedges when the related anticipated foreign revenue and expenses are recognized in the Company’s financial statements. The Company also hedges certain non-functional currency monetary assets and liabilities that may not be incorporated into the cash flow hedge program. The Company adjusts its non-designated hedges monthly and enters into about ten non-designated derivatives per quarter. The average size of its non-designated hedges is approximately $2.0 million USD equivalent and these hedges range from one to three months in duration. The effects of the Company’s non-designated hedge included in Other income (expense), net in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and October 1, 2017 are as follows: Derivatives Not Designated as Hedging Instruments Location of Gains (Losses) Recognized in Income on Derivative Three Months Ended Nine Months Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 (In thousands) Foreign currency forward contracts Other income (expense), net $ 934 $ (1,925 ) $ 3,963 $ (6,171 )

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic net income per share is computed by dividing the net income attributable to NETGEAR, Inc. 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 attributable to NETGEAR, Inc. 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 common shares issuable upon exercise of stock options, vesting of restricted stock awards, and issuances of shares under the Employee Stock Purchase Plan (the “ESPP”), which are reflected in diluted net income per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive. Net income per share attributable to NETGEAR, Inc. for the three and nine months ended September 30, 2018 and October 1, 2017 were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share data) Numerator: Net income $ 9,150 $ 20,794 $ 9,510 $ 51,370 Less: Net loss attributable to non-controlling interest (799 ) — (799 ) — Net income attributable to NETGEAR, Inc. $ 9,949 $ 20,794 $ 10,309 $ 51,370 Denominator: Weighted average common shares - basic 31,802 31,704 31,634 32,335 Potentially dilutive common share equivalent 1,172 689 1,192 934 Weighted average common shares - dilutive 32,974 32,393 32,826 33,269 Basic net income per share attributable to NETGEAR, Inc. $ 0.31 $ 0.66 $ 0.33 $ 1.59 Diluted net income per share attributable to NETGEAR, Inc. $ 0.30 $ 0.64 $ 0.31 $ 1.54 Anti-dilutive employee stock-based awards, excluded 450 975 874 431

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax provision for the three and nine months ended September 30, 2018 , was $2.8 million , or an effective tax rate of 23.3% , and $9.5 million , or an effective tax rate of 50.1% , respectively. The income tax provision for the three and nine months ended October 1, 2017 , $5.8 million , or an effective tax rate of 21.7% , and $18.7 million , or an effective tax rate of 26.7% , respectively. The increase in the effective tax rate and decrease in tax expense for the three and nine months ended September 30, 2018 , compared to the three and nine months ended October 1, 2017 , resulted primarily from a combination of the decline in pre-tax earnings resulting from an increase in expenses from the separation of the Arlo business and the decrease in the US federal tax rate from 35% to 21%. Additionally, during the three and nine months ended September 30, 2018, the Company completed its US federal income tax return and recognized a favorable adjustment of approximately $4.0 million related to the final determination of the transition tax which was accounted for under provisions of SAB 118 described below. This is partially offset by the tax effect of certain costs related to the separation of Arlo that the Company expects to be non-deductible. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act reduced the U.S. statutory rate from 35% to 21% effective as of January 1, 2018. In addition, certain new complex tax rules related to the taxation of foreign earnings (Global Intangible Low-Taxed Income, Foreign Derived Intangible Income and Base Erosion and Anti-abuse Tax “BEAT”) became effective as of January 1, 2018. Based on information available to date, the Company has evaluated these provisions and estimate that there is no material impact on its income tax provision other than a potential exposure for BEAT of approximately $0.8 million for the nine months ended September 30, 2018 . In the year ended December 31, 2017, the Company recorded the effects of a reduction in tax rates from 35% to 21% on its deferred tax assets and liabilities and to record a one-time transition tax. After the enactment of the Tax Act, the SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company has calculated an estimate of the impact of the Tax Act in its tax provision for the period ending December 31, 2017 in accordance with its understanding of the Tax Act and guidance available as of the date of the filing of Form 10-K and as a result recorded $48.3 million as additional income tax expense in the fourth fiscal quarter of 2017, the period in which the legislation was enacted. The provisional amount related to the remeasurement of certain deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future, was $26.6 million . The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was $21.7 million . The Company has reviewed these amounts based on additional guidance available and has not changed its estimates. In accordance with SAB 118, the Company has determined that the $21.7 million of current tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings was a provisional amount and a reasonable estimate at December 31, 2017. The Company has reviewed these amounts based on additional guidance available and has adjusted the estimate down by $4 million as of the end of the quarter ended September 30, 2018. The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. The future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. The Company is under examination in various U.S. and foreign jurisdictions. The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions resulting from the expiration of statutes of limitation in multiple jurisdictions in the next twelve months is approximately $0.9 million , excluding the interest, penalties and the effect of any related deferred tax assets or liabilities.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company leases office space, cars and equipment under operating leases, some of which are non-cancelable, with various expiration dates through December 2028 . 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. In June 2018, Arlo Technologies Inc., a majority-owned subsidiary of the Company, entered into an office lease agreement expiring December 2028 for its corporate headquarters located in San Jose, California. During the third fiscal quarter of 2018, the Company commenced construction of tenant improvement which is expected to be complete by January 2019. Annual base rent is expected to be $2.9 million and will increase throughout the lease term. Lease payments are expected to commence once the building is complete. Under the authoritative guidance for leases, the Company is deemed the owner, for accounting purposes, during the construction phase of the building (mainly for construction of tenant improvements) under build-to-suit lease arrangements because of the Company’s involvement with the construction, the exposure to any potential cost overruns or other commitments including indemnification under the arrangements. Consequently, the fair value of the building, of $21.9 million , was included in property and equipment, net, and recorded based on fair value of the building and actual construction costs incurred through September 30, 2018 . A corresponding liability of $20.6 million was included in Non-current liabilities and $0.9 million was included in Current liabilities on the Company’s unaudited condensed consolidated balance sheets as of September 30, 2018 . 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. As of September 30, 2018 , the Company had approximately $169.1 million in non-cancelable purchase commitments with suppliers. The Company establishes a loss liability for all products it does not expect to sell for which it has committed purchases from suppliers. Such losses have not been material to date. From time to time the Company’s suppliers procure unique complex components on the Company's behalf. If these components do not meet specified technical criteria or are defective, the Company should not be obligated to purchase the materials. However, disputes may arise as a result and significant resources may be spent resolving such disputes. Warranty Obligation Changes in the Company’s warranty obligation, which is included in Other accrued liabilities in the unaudited condensed consolidated balance sheets, were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Balance as of beginning of the period $ 18,759 $ 60,451 $ 75,824 $ 58,520 Reclassified to sales returns upon adoption of ASC 606 — — (57,860 ) * — Provision for warranty obligation made during the period 857 35,815 3,798 97,083 Settlements made during the period (1,090 ) (28,716 ) (3,236 ) (88,053 ) Balance at end of period $ 18,526 $ 67,550 $ 18,526 $ 67,550 ________________________ * Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return. Guarantees and Indemnifications The Company, as permitted under Delaware law and in accordance with its Bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum amount of potential future indemnification is unlimited; however, the Company has a Director and Officer Insurance Policy that enables it to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the fair value of each indemnification agreement is minimal. Accordingly, the Company had no liabilities recorded for these agreements as of September 30, 2018 . 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. The Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company had no liabilities recorded for these agreements as of September 30, 2018 . Employment Agreements The Company has signed various change in control and severance agreements with key executives. Upon a termination without cause or resignation with good reason, executive officers would be entitled to (1) cash severance equal to the executive officer’s annual base salary, and, for the Chief Executive Officer, an additional amount equal to his target annual bonus, (2) 12 months of health benefits continuation and (3) accelerated vesting of any unvested equity awards that would have vested during the 12 months following the termination date. Upon a termination without cause or resignation with good reason that occurs during the one month prior to or 12 months following a change in control of the Company, executive officers would be entitled to (1) cash severance equal to a multiple ( 2 x for the Chief Executive Officer and 1 x for all other executive officers) of the sum of the executive officer’s annual base salary and target annual bonus, (2) a number of months ( 24 for the Chief Executive Officer and 12 for other executive officers) of health benefits continuation and (3) accelerated vesting of all outstanding, unvested equity awards. The Company had no liabilities recorded for these agreements as of September 30, 2018 . 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 alleged that the Company and the other defendants 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. On June 22, 2012, Intel filed its Complaint in Intervention, meaning that Intel also became a defendant. During litigation, Ericsson (a) dismissed the '468 Patent with prejudice and gave the Company a covenant not to sue as to products in the marketplace now or in the past, (b) dropped the '516 Patent and (c) dropped the '223 Patent, except for those products that use Intel chips. A jury trial 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 cents per unit for each accused 802.11 device sold by each defendant ( 5 cents per patent). The Company and other defendants appealed the jury verdict. On December 4, 2014, the Federal Circuit issued its opinion and order in the appeal. The Federal Circuit vacated the entirety of the $3.6 million jury verdict against the Company and other defendants’ damages awards and also vacated the ongoing 15 cent s per unit royalty verdict, finding that the District Court had not properly instructed the jury on royalty rates and Ericsson’s licensing promises. 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. The case was remanded for further proceedings. In September 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, ruling these claims were anticipated or obvious in light of prior art. 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. Accordingly, the Company has reversed the accruals related to this case. Ericsson appealed the PTAB’s Broadcom IPR decision to the Federal Circuit and also requested that the PTAB reconsider its decision. The PTAB denied Ericsson’s request for reconsideration. On appeal to the Federal Circuit, Ericsson argued that the PTAB’s determination that Broadcom had timely filed its IPR petitions was improper, as it was in privity with the defendants, and that the PTAB should not have invalidated the claims of the '625 Patent, the '568 Patent, and '215 Patent. The Federal Circuit upheld the invalidity of the patents’ claims, as previously determined by the PTAB, and ruled that Ericsson could not appeal the timeliness of Broadcom’s IPR petitions. Ericsson petitioned the Federal Circuit for an en banc rehearing of the Federal Circuit's panel decision that Broadcom was timely in bringing its IPRs, and the Federal Circuit agreed to the en banc rehearing. On January 8, 2018, the Federal Circuit sitting en banc ruled that the timeliness of Broadcom’s IPR petitions was an appealable issue. Following this en banc decision finding that PTAB decisions on privity are appealable, on April 20, 2018, the original three judge panel upheld its prior finding of invalidity and found that Broadcom was not in privity with the defendants in the district court case, and had timely filed its IPR petitions. In response, Ericsson filed another motion for an en banc hearing of this decision. On August 14, 2018, the Federal Circuit denied Ericsson’s motions for rehearing and rehearing en banc. The only appeal left for Ericsson is to the US Supreme Court. The present status of the case continues to be that the Company does not infringe any valid Ericsson patent. 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 encompassed 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 an appeal brief, including 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 December 19, 2014. The Tax Court decided 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. On February 26, 2016, the Regional Tax Court conducted the appeals hearing for the 2004 year, ruling in favor of the Company. On June 13, 2016, the Inland Revenue Agency appealed the decision to the Supreme Court. The Company filed a counter appeal on July 23, 2016 and is awaiting scheduling of the hearing. In June 2015, the Company filed with the Provincial Tax Court of Milan an appeal brief including a Request for Hearing in Open Court and Request for Suspension of the Tax Assessment for the 2005 through 2006 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 for 2005 and 2006 was held in December 2015 with the Provincial Tax Court issuing its decision in favor of the Company. The Inland Revenue Agency filed its appeal with the Regional Tax Court. The Company filed its counter brief on September 30, 2016 and the hearing was held on March 22, 2017. A decision favorable to the Company was issued by the Court on July 5, 2017. The Italian Tax Authority has appealed the decision to the Supreme Court and the Company has responded with a counter appeal brief on December 3, 2017 and awaits scheduling of the hearing. The hearing for the validity of the tax assessment for 2007 was held on March 10, 2016 with the Provincial Tax Court who issued its decision in favor of the Company on April 7, 2016. The Inland Revenue Agency has filed its appeal to the Regional Tax Court and the Company has submitted its counter brief. The hearing was held on November 17, 2017 and the Company received a positive decision on December 11, 2017. On June 11, 2018, the Italian government filed its appeal brief with the Supreme Court, and the Company filed its counter brief on July 12, 2018 and awaits scheduling of the hearing. With respect to 2008 through 2010, the Company filed its appeal briefs with the Provincial Tax Court in October 2015 and the hearing for the validity of the tax assessments was held on April 21, 2016. A decision favorable to the Company was issued on May 12, 2016. The Inland Revenue Agency has filed its appeal to the Regional Tax Court. The Company filed its counter brief on February 5, 2017. The hearing was held on May 21, 2018, and the Company received a favorable decision on June 12, 2018. The decision has not been served to the Tax Office, which is entitled to appeal on or before January 12, 2019. With respect to 2011 through 2012, the Company has filed its appeal brief on February 26, 2016 with the Provincial Tax Court to contest the relevant tax assessments. The hearing for suspension was held and the Request for Suspension of payment was granted. On October 13, 2016, the Company filed its final brief with the Provincial Tax Court. The hearing was held on October 24, 2016 and a decision favorable to the Company was issued by the Court. The Inland Revenue Agency appealed the decision before the Regional Tax Court on April 19, 2017. The Company filed its counter brief on June 16, 2017 and awaits the scheduling of the hearing. With regard to all tax years, 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 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. 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. On March 8, 2016, the Patent Trial and Appeal Board issued written decisions instituting the IPRs jointly filed by Amazon and Blizzard. In early March of 2017, The Patent Trial and Appeal Board (PTAB) issued various decisions regarding Amazon’s and Blizzard’s IPRs of the patents in suit. One of the IPRs of the '125 patent resulted in a finding by the PTAB that Amazon and Blizzard had had failed to show invalidity. The second IPR on the '125 patent, however, resulted in cancellation of all claims asserted in Via Vadis’s suit against the Company. Reissue '521 did not have any claims found invalid by the PTAB, and some dependent claims of the '680 patent survived the IPRs, and some claims of the '680 patent were canceled. The Northern District of California case against the Company remains stayed. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Chrimar Systems, Inc. v NETGEAR, Inc. On July 1, 2015, the Company was sued by a non-practicing entity named Chrimar Systems, Inc., doing business as CMS Technologies and Chrimar Holding Company, LLC (collectively, “CMS”), in the Eastern District of Texas for allegedly infringing four patents-U.S. Patent Nos. 8,155,012 (the “'012 Patent”), entitled “System and method for adapting a piece of terminal equipment”; 8,942,107 (the “'107 Patent”), entitled “Piece of ethernet terminal equipment”; 8,902,760 (the “'760 Patent”), entitled “Network system and optional tethers”; and 9,019,838 (the “'838 Patent”), entitled “Central piece of network equipment” (collectively “patents-in-suit”). The patents-in-suit relate to using or embedding an electrical DC current or signal into an existing Ethernet communication link in order to transmit additional data about the devices on the communication link, and the specifications for the patents are identical. It appears that CMS 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 answered the complaint on September 15, 2015. On November 24, 2015, CMS served its infringement contentions on the Company, and CMS 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 the Company'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, CMS 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. The initial case management conference in the Northern District of California occurred on May 13, 2016, and on August 19, 2016, the parties exchanged preliminary claim constructions and extrinsic evidence. On August 26, 2016, the Company and three defendants in other Northern District of California CMS cases (Juniper Networks, Inc., Ruckus Wireless, Inc., and Fortinet, Inc.) submitted motions to stay their cases. The defendants in part argued that stays were appropriate pending the resolution of the currently-pending IPRs of the patents-in-suit before the Patent Trial and Appeal Board (PTAB), including four IPR Petitions filed by Juniper. On September 9, 2016, CMS submitted its opposition to the motions to stay the cases. On September 26, 2016, the Court ordered the cases stayed in their entirety, until the PTAB reaches institution decisions with respect to Juniper’s four pending IPR petitions. Juniper’s four IPR petitions were instituted by the PTAB in January 2017, and the Company subsequently moved to join the IPR petitions as an “understudy” to Juniper, only assuming a more active role in the petitions in the event Juniper settles with CMS. For all four patents in suit against the Company, the PTAB ordered that (a) the Petitioners’ (the Company, Ruckus, and Brocade) Motion for Joinder to the Juniper IPRs is granted; (b) the Petitioners IPRs are instituted on the same grounds as in the Juniper ‘IPRs and Petitioners are joined with the Juniper IPRs; and (c) all further filings by Petitioners in the joined proceedings will be in the Juniper IPRs. On December 21, 2017, the PTAB issued the first of the four Final Written Decisions in the IPRs filed by the Company on the patents in suit, ruling that the claims of the ‘107 Patent asserted by Chrimar were invalid. This was quickly followed by two more Final Written Decisions -- on January 3, 2018, the ’838 patent’s asserted claims were ruled invalid, and on January 23, 2018 the ‘012 patent’s asserted claims were ruled invalid. Chrimar has 30 days from each Final Written Decision to seek a rehearing at the PTAB and 63 days from each to file an appeal. On April 26, 2018, the PTAB issued its decision invalidating all of the claims of the ‘760 patent challenged in the IPR. The PTAB’s reasoning was similar to the reasoning set forth in the PTAB’s previous decisions on the 012, 107 and 838 patents. The ‘760 patent claims were, however, amended by Chrimar during the pendency of the ‘760 IPR, and the PTAB did not rule on the validity of the amended claims, as they were not challenged in the original IPR Petitions (they couldn’t have been because the Chrimar amendments had not yet happened). On June 6, 2018, Chrimar’s appeals on all 4 written decisions by the USPTO invalidating all challenged claims were consolidated. The parties plan to submit briefs on the matter in the coming months. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Vivato v. NETGEAR, Inc. On April 19, 2017, the Company was sued by XR Communications (d/b/a) Vivato (“Vivato”) in the United States District Court, Central District of California. Based on its complaint, Vivato purports to be a research and development and product company in the Wi-Fi area, but it appears that Vivato is not currently a manufacturer of commercial products. The three (3) patents that Vivato asserts against the Company are U.S. Patent Nos. 7,062,296, 7,729,728, and 6,611,231. The ’296 and ’728 patents are entitled “Forced Beam Switching in Wireless Communication Systems Having Smart Antennas.” The ’231 patent is entitled “Wireless Packet Switched Communication Systems and Networks Using Adaptively Steered Antenna Arrays.” Vivato also has recently asserted the same patents in the Central District of California against D-Link, Ruckus, and Aruba, among others. According to the complaint, the accused products include WiFi access points and routers supporting MU-MIMO, including without limitation access points and routers utilizing the IEEE 802.11ac-2013 standard. The accused technology is standards-based, and more specifically, based on the transmit beamforming technology in the 802.11ac Wi-Fi standard. The Company answered an amended complaint on July 7, 2017. In its answer, the Company objected to venue and recited that objection as a specific affirmative defense, so as to expressly reserve the same. The Company also raised several other affirmative defenses in its answer. On August 28, 2017, the Company submitted its initial disclosures to the plaintiff. The initial scheduling conference was on October 2, 2017, and the Court set five day jury trial for March 19, 2019 for the leading Vivato/D-Link case, meaning the Company’s trial date will be at some point after March 19, 2019. Discovery in this case is ongoing. On March 20, 2018, the Company and other defendants in the various Vivato cases moved the Court to stay the case pending various IPRs filed on all of the patents in suit. Every asserted claim of all three patents-in-suit is now subject to challenge in IPRs that are pending before the U.S. Patent and Trial Appeal Board (“PTAB”). In particular, the Company, Belkin, and Ruckus are filing one set of IPRs on the three patents in suit; Cisco is filing another set of independent IPRs on the three patents in suit; and Aruba is filing yet another set of independent IPRs on the three patents in suit. On April 11, 2018, the Court granted the motion to stay pending filing of the IPRs. On May 3, 2018, the Company and other defendants filed their IPRs. The case is stayed. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. Hera Wireless v. NETGEAR, Inc. On July 14, 2017, the Company was sued by Sisvel (via Hera Wireless) in the District of Delaware on three related patents allegedly covering the 802.11n standard. Similar complaints were filed against Amazon, ARRIS, Belkin, Buffalo, and Roku. On December 12, 2017, the Company answered the complaint, denying why each claim limitation of the patents in suit were allegedly met and asserting various affirmative defenses, including invalidity and noninfringement. A proposed joint Scheduling Order was submitted to the Court on January 24, 2018 with trial proposed for March of 2020. On February 27, 2018, Hera Wireless identified the accused products and the asserted claims, alleging that any 802.11n compliant product infringes, and identified only the Company’s Orbi and WND930 products with particularity. Hera Wireless’ infringement contentions were submitted on April 28, 2018. Discovery is ongoing. On June 28, 2018, the Company and other defendants submitted invalidity contentions. The Company along with other defendants jointly filed IPRs challenging 3 of the patents in suit on July 18, 2018. On September 14, 2018, the Company and other defendants jointly filed a second set of IPRs with the USPTO challenging the remaining 6 patents asserted in the Amended Complaint. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. MyMail v. NETGEAR, Inc. On August 25, 2017, the non-practicing entity MyMail Ltd. (“MyMail”) sued the Company for patent infringement in the District of Delaware. This is MyMail’s third round of cases, starting in November 2016, and, in this round, MyMail also filed against Ricoh, Panasonic, Acer, and TCL Communications. MyMail is accusing essentially all the Company’s routers and range extenders of infringing claim 5 of U.S. Patent 8,732,318 (the ‘318 patent), entitled “Method of Connecting a User to a Network.” Claim 5 of the ’318 Patent describes a method for modifying network access information and then accessing the network using the modified information. MyMail is specifically accusing the Wi-Fi Protected Setup (WPS) function of the accused routers and range extenders. On December 7, 2017, the Company answered the complaint. In addition to denying that each claim limitation of patents in suit is met, the Company also asserted various affirmative defenses, including invalidity and noninfringement. The parties submitted their jointly proposed scheduling order to the Court on January 11, 2018, which the Court generally adopted in its Scheduling Order of January 17, 2018.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders' Equity Stock Repurchases From time to time, the Company’s Board of Directors has authorized programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. Under the authorizations, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the price of the Company’s common stock. As of September 30, 2018 , 1.8 million shares remained authorized for repurchase under the repurchase program. The Company repurchased, reported based on trade date, shares of 0.2 million common stock at a cost of $15.0 million under the authorizations during the nine months ended September 30, 2018 . The Company repurchased, reported based on trade date, 1.8 million shares of common stock at a cost of $86.6 million under the repurchase authorization during the nine months ended October 1, 2017 . The Company repurchased, as reported based on trade date, approximately 129,000 shares of common stock at a cost of $7.6 million to administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving RSUs during the nine months ended September 30, 2018 . Similarly, during the nine months ended October 1, 2017 , the Company repurchased, as reported based on trade date, approximately 127,000 shares of common stock at a cost of $6.0 million to 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 ("AOCI") by component for the nine months ended September 30, 2018 and October 1, 2017 : Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total (In thousands) Balance as of December 31, 2017 $ (146 ) $ (838 ) $ 133 $ (851 ) Other comprehensive income (loss) before reclassifications 72 1,075 (165 ) 982 Less: Amount reclassified from accumulated other comprehensive income — 211 (44 ) 167 Net current period other comprehensive income (loss) 72 864 (121 ) 815 Balance as of September 30, 2018 $ (74 ) $ 26 $ 12 $ (36 ) Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total (In thousands) Balance as of December 31, 2016 $ (31 ) $ 2,230 $ (261 ) $ 1,938 Other comprehensive income (loss) before reclassifications (41 ) (10,590 ) 2,038 (8,593 ) Less: Amount reclassified from accumulated other comprehensive income — (2,912 ) 1,019 (1,893 ) Net current period other comprehensive income (loss) (41 ) (7,678 ) 1,019 (6,700 ) Balance as of October 1, 2017 $ (72 ) $ (5,448 ) $ 758 $ (4,762 ) The following tables provide details about significant amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2018 and October 1, 2017 : Details about Accumulated Other Comprehensive Income Components Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Amount Reclassified from AOCI Affected Line Item in the Statements of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations (In thousands) (In thousands) Gains (losses) on cash flow hedge: Foreign currency forward contracts $ 1,031 Net revenue $ 246 Net revenue Foreign currency forward contracts (7 ) Cost of revenue (8 ) Cost of revenue Foreign currency forward contracts 2 Research and development 88 Research and development Foreign currency forward contracts (138 ) Sales and marketing (65 ) Sales and marketing Foreign currency forward contracts (41 ) General and administrative (50 ) General and administrative 847 Total before tax 211 Total before tax (178 ) Tax impact (44 ) Tax impact $ 669 Total, net of tax $ 167 Total, net of tax Details about Accumulated Other Comprehensive Income Components Three Months Ended October 1, 2017 Nine Months Ended October 1, 2017 Amount Reclassified from AOCI Affected Line Item in the Statements of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations (In thousands) (In thousands) Gains (losses) on cash flow hedge: Foreign currency forward contracts $ (4,401 ) Net revenue $ (3,374 ) Net revenue Foreign currency forward contracts 19 Cost of revenue 5 Cost of revenue Foreign currency forward contracts 84 Research and development 10 Research and development Foreign currency forward contracts 629 Sales and marketing 380 Sales and marketing Foreign currency forward contracts 109 General and administrative 67 General and administrative (3,560 ) Total before tax (2,912 ) Total before tax 1,246 Tax impact 1,019 Tax impact $ (2,314 ) Total, net of tax $ (1,893 ) Total, net of tax

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2018
Employee Benefits and Share-based Compensation, Noncash [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company grants options and RSUs under the 2016 Incentive Plan (the "2016 Plan"), under which awards may be granted to all employees. Award vesting periods for this plan are generally four years . In May 2018, the Company adopted amendments to the 2016 Plan which increased the number of shares of the Company’s common stock that may be issued under the 2016 plan by an additional 1.7 million shares. As of September 30, 2018 , approximately 1.8 million shares were reserved for future grants under the 2016 Plan. Additionally, the Company sponsors an 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. The terms of the plan include a look-back feature that enables employees to purchase stock semi-annually at a price equal to 85% of the lesser of the fair market value at the beginning of the offering period or the purchase date. The duration of each offering period is generally six -months. As of September 30, 2018 , approximately 0.7 million shares were available for issuance under the ESPP. Option Activity Stock option activity during the nine months ended September 30, 2018 was as follows: Number of shares Weighted Average Exercise Price Per Share (In thousands) (In dollars) Outstanding as of December 31, 2017 1,879 $ 34.08 Granted 378 69.70 Exercised (226 ) 23.02 Expired (6 ) 21.45 Outstanding as of September 30, 2018 2,025 $ 42.00 RSU Activity RSU activity during the nine months ended September 30, 2018 was as follows: Number of shares Weighted Average Grant Date Fair Value Per Share (In thousands) (In dollars) Outstanding as of December 31, 2017 1,130 $ 43.22 Granted 933 68.27 Vested (410 ) 40.94 Cancelled (53 ) 54.78 Outstanding as of September 30, 2018 1,600 $ 58.04 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 options granted and the purchase rights granted under the ESPP 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 of options granted and the purchase rights granted under the ESPP 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 of options granted and the purchase rights granted under the ESPP is based on historical volatility over the most recent period commensurate with the estimated expected term. The table below sets forth the weighted average assumptions used to estimate the fair value of option grants and purchase rights granted under the ESPP during the three and nine months ended September 30, 2018 and October 1, 2017 . Three Months Ended Nine Months Ended Stock Options ESPP Stock Options ESPP September 30, October 1, September 30, October 1, September 30, October 1, September 30, October 1, Expected life (in years) 4.4 NA 0.5 0.5 4.4 4.4 0.5 0.5 Risk-free interest rate 2.79 % NA 2.22 % 1.12 % 2.36 % 1.65 % 2.00 % 0.93 % Expected volatility 33.5 % NA 38.8 % 31.3 % 31.1 % 31.6 % 37.9 % 29.7 % Dividend yield — NA — — — — — — The following table sets forth the stock-based compensation expense resulting from stock options, RSUs and the ESPP included in the Company’s unaudited condensed consolidated statements of operations and includes $0.9 million expenses related to Arlo's equity grants described more fully in the section below: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of revenue $ 853 $ 499 $ 2,571 $ 1,477 Research and development 1,907 1,056 5,431 3,748 Sales and marketing 2,728 1,654 7,847 4,339 General and administrative 4,066 2,374 10,825 6,848 Total stock-based compensation $ 9,554 $ 5,583 $ 26,674 $ 16,412 As of September 30, 2018 , $11.4 million of unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.5 years. $77.3 million of unrecognized compensation cost related to unvested RSUs is expected to be recognized over a weighted-average period of 2.7 years, Arlo Grants In connection with the Arlo IPO discussed in Note 4, Planned Separation of Arlo, Arlo granted to certain individuals from its executive team performance-based options to purchase 2.8 million shares of Arlo common stock at weighted average exercise price of $16.00 per share to create incentives for continued long-term success and to closely align executive pay with the Company’s stockholders’ interests in the achievement of significant milestones. Additionally, during the three months ended September 30, 2018 , in connection with Arlo's annual long-term incentive compensation cycle, Arlo granted and additional 0.6 million shares of stock options and 60,000 shares of RSUs. $0.9 million of expenses related to these Arlo's equity grants were recognized in the three months ended September 30, 2018. Arlo measures stock-based compensation at the grant date based on the estimated fair value of the award. Arlo calculates the fair value of the option using the Black-Scholes-Merton option pricing model.The grant date fair value of Arlo's RSUs was based on the Arlo's closing stock price on the date of grant. Arlo’s common stock did not have a history of being publicly traded at grant date, the estimated term of Arlo’s options granted was determined using a combination of simplified method, using an average of the contractual term and vesting period of the stock options and by using managements best estimate of the expected term. The risk-free interest rate of options granted was based on the implied yield currently available on U.S. Treasury securities, with a remaining term commensurate with the estimated expected term. The estimated volatility assumption was calculated based on a compensation peer group analysis of stock price volatility with an eight-year look back period ending on the grant date. The table below sets forth the weighted average assumptions used to estimate the fair value of Arlo's option grants during the three months ended September 30, 2018 . Three Months Ended September 30, Expected life (in years) 6.3 Risk-free interest rate 2.86 % Expected volatility 40.0 % Dividend yield — As of September 30, 2018, $19.2 million of unrecognized compensation cost related to Arlo’s stock options was expected to be recognized over a weighted-average period of 3.6 years. $0.9 million of unrecognized compensation cost related to unvested Arlo’s RSUs was expected to be recognized over a weighted-average period of 1.7 years. The Company expects that certain of NETGEAR's outstanding stock options and unvested restricted stock units held by both NETGEAR and Arlo employees on the date of the Distribution will be converted to equivalent options or restricted stock units, as applicable, with respect to Arlo’s common stock. These modified awards will otherwise have substantially the same terms and conditions, including term and vesting provisions, as the existing NETGEAR's equity awards at the time of conversion. Additionally, in connection with the Distribution, the Company expects to proportionately adjust the number and exercise prices of certain options, RSUs granted to NETGEAR and Arlo employees that are outstanding at the time of the spin-off and to maintain the aggregate intrinsic value of such awards at the date of the spin-off, pursuant to the terms of these awards.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information 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 and reports in three segments: Arlo, Connected Home, and SMB. The Arlo segment is a majority-owned, publicly traded subsidiary, Arlo Technologies, Inc. upon the completion of its IPO on August 7, 2018: • Arlo: Focused on combining an intelligent cloud infrastructure and mobile app with a variety of smart connected devices that transform the way people experience the connected lifestyle; • Connected Home: Focused on consumers and consists of high-performance, dependable and easy-to-use LTE and WiFi internet networking solutions; and • SMB: Focused on small and medium-sized businesses and consists of business networking, storage and security solutions that bring enterprise-class functionality to small and medium-sized businesses at an affordable price. The Company believes that this structure reflects its current operational and financial management, and provides the best structure for the Company to focus on growth opportunities while maintaining financial discipline. The leadership team of each segment is focused on the product development efforts, both from a product marketing and engineering standpoint, to service the unique needs of their customers. 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, separation expense, restructuring and other charges, litigation reserves, net, interest income and other income (expense), net. The CODM 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 : Three Months Ended Nine Months Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 (In thousands, except percentage data) Net revenue: Arlo $ 131,174 $ 110,460 $ 332,197 $ 249,904 Connected Home 194,684 183,099 563,628 563,365 SMB 74,728 61,924 216,554 196,594 Total net revenue $ 400,586 $ 355,483 $ 1,112,379 $ 1,009,863 Contribution income: Arlo $ 8,495 $ 15,230 $ 12,813 $ 18,723 Arlo contribution margin 6.5 % 13.8 % 3.9 % 7.5 % Connected Home $ 31,283 $ 24,546 $ 87,143 $ 81,382 Connected Home contribution margin 16.1 % 13.4 % 15.5 % 14.4 % SMB $ 21,200 $ 12,583 $ 58,130 $ 47,839 SMB contribution margin 28.4 % 20.3 % 26.8 % 24.3 % Total segment contribution income $ 60,978 $ 52,359 $ 158,086 $ 147,944 Corporate and unallocated costs (32,454 ) (18,740 ) (82,003 ) (53,974 ) Amortization of intangibles (1) (2,304 ) (2,608 ) (7,111 ) (10,136 ) Stock-based compensation expense (9,554 ) (5,583 ) (26,674 ) (16,412 ) Separation expense (7,054 ) — (25,822 ) — Restructuring and other charges (1 ) (19 ) (1,368 ) (78 ) Litigation reserves, net — (15 ) (5 ) (68 ) Interest income 1,490 501 3,310 1,388 Other income (expense), net 829 666 638 1,384 Income before income taxes $ 11,930 $ 26,561 $ 19,051 $ 70,048 _________________________ (1) Amount excludes amortization expense related to patents within purchased intangibles in cost of revenue. Operations by Geographic Region The Company conducts business across three geographic regions: Americas, EMEA, and APAC. Net revenue consists of gross product shipments and service revenue, less allowances for estimated sales returns, price protection, end-user customer rebates and other channel sales incentives deemed to be a reduction of net revenue per the authoritative guidance for revenue recognition, and net changes in deferred revenue. For reporting purposes, revenue is generally attributed to each geographic region based on the location of the customer. The following table shows net revenue by geography for the periods indicated: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) United States (U.S.) $ 280,639 $ 235,584 $ 762,619 $ 663,096 Americas (excluding U.S.) 8,145 8,804 19,611 19,870 EMEA 64,917 62,161 200,227 175,810 APAC 46,885 48,934 129,922 151,087 Total net revenue $ 400,586 $ 355,483 $ 1,112,379 $ 1,009,863 Long-lived assets by Geographic Region Long-lived assets include purchased intangibles, goodwill and property and equipment. The Company's property and equipment are located in the following geographic locations: As of September 30, December 31, (In thousands) United States ("U.S.") $ 41,799 $ 9,216 Americas (excluding U.S.) 4,189 1,807 EMEA 386 141 China 7,021 6,803 APAC (excluding China) 3,252 2,693 Total property and equipment, net $ 56,647 $ 20,660

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables summarize assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 : As of September 30, 2018 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Cash equivalents: money-market funds $ 37,228 $ 37,228 $ — $ — Available-for-sale securities: U.S. treasuries (1) 133,164 133,164 — — Available-for-sale securities: certificates of deposit (1) 152 152 — — Trading securities: mutual funds (1) 2,857 2,857 — — Foreign currency forward contracts (2) 1,028 — 1,028 — Total assets measured at fair value $ 174,429 $ 173,401 $ 1,028 $ — Liabilities: Foreign currency forward contracts (3) $ 209 $ — $ 209 $ — Contingent consideration (4) 5,953 $ — $ — 5,953 Total liabilities measured at fair value $ 6,162 $ — $ 209 $ 5,953 _________________________ (1) Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets. (2) Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets. (3) Included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets. (4) Included in Other non-current accrued liabilities on the Company’s unaudited condensed consolidated balance sheets. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with the acquisition of Meural that is contingent upon the achievement of certain technical and service revenue milestones milestones. Refer to Note 5, Business Acquisition, regarding detailed disclosures on the determination of fair value of the contingent consideration. The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 : As of December 31, 2017 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Cash equivalents: money-market funds $ 12,606 $ 12,606 $ — $ — Available-for-sale securities: U.S. treasuries (1) 124,670 124,670 — — Available-for-sale securities: certificates of deposit (1) 162 162 — — Trading securities: mutual funds (1) 2,094 2,094 — — Foreign currency forward contracts (2) 1,799 — 1,799 — Total assets measured at fair value $ 141,331 $ 139,532 $ 1,799 $ — Liabilities: Foreign currency forward contracts (3) $ 8,192 $ — $ 8,192 $ — Total liabilities measured at fair value $ 8,192 $ — $ 8,192 $ — _________________________ (1) Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets. (2) Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets. (3) Included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets. 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. As of September 30, 2018 and December 31, 2017 , 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.

Restructuring and Other Charges

Restructuring and Other Charges	9 Months Ended
	Sep. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring and Other Charges	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 the unaudited condensed consolidated statements of operations. Accrued restructuring and other charges are classified within Other accrued liabilities in the unaudited condensed consolidated balance sheets. Restructuring and other charges recognized in the nine months ended September 30, 2018 , were primarily for severance, and other costs in relation to certain office closures and downsizes. No significant restructuring and other charges were recognized during the three months ended September 30, 2018 and the three and nine months ended October 1, 2017 . Amounts attributable to lease contract termination charges will be paid over the remaining lease term until January 2022 . The following table provides a summary of the activity related to accrued restructuring and other charges for the nine months ended September 30, 2018 : Accrued Restructuring and Other Charges at December 31, 2017 Additions Cash Payments Adjustments Accrued Restructuring and Other Charges at September 30, 2018 (In thousands) Restructuring Employee termination charges $ 6 $ 917 $ (702 ) $ (10 ) $ 211 Lease contract termination and other charges 1,129 464 (1,354 ) (3 ) 236 Total Restructuring and other charges $ 1,135 $ 1,381 $ (2,056 ) $ (13 ) $ 447

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Recent accounting pronouncements	Recent accounting pronouncements Accounting Pronouncements Recently Adopted ASU 2014-09 In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606). The revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition ("ASC 605") is superseded by Topic 606 ("ASC 606"). ASC 606 requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. On January 1, 2018, the Company adopted ASC 606 and applied this guidance to the contracts which were not completed at the date of adoption using the modified retrospective method. Refer to Note 3. Revenue Recognition , for further details. ASU 2016-01 In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities" (Subtopic 825-10), which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income. This guidance simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. This guidance also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company adopted the guidance effectively January 1, 2018. The adoption did not have a material impact to the Company. The Company believes the most significant impact will be that the adoption of the new guidance could increase the volatility of its Other income (expense), net, as a result of the re-measurement of its equity investments without readily determinable fair values upon the occurrence of observable price changes and impairments. ASU 2016-15 In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments" (Topic 230), which clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The adoption of the guidance is required to be applied retrospectively and is effective for the Company in the first fiscal quarter of 2018. The Company adopted the guidance effectively January 1, 2018 and applied to the business combination transactions occurring on or after the adoption date. The adoption did not have material impacts on its financial position, results of operations or cash flows. ASU 2016-16 In October 2016, the FASB issued ASU 2016-16, "Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory" (Topic 740), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This removes the exception to postpone recognition until the asset has been sold to an outside party. ASU 2016-16 is effective for the Company in the first fiscal quarter of 2018 and early adoption is permitted. The Company adopted the new standard effectively January 1, 2018. Upon adoption, the Company has recorded a deferred tax asset of $21.1 million resulting from differences in the tax basis of assets and the consolidated book basis of assets resulting from intra-entity transfers of intangible assets. The recognition of the deferred tax asset resulted in an increase to retained earnings upon adoption. Further, the Company estimates that adoption of the standard will increase tax expense by an approximate $1.3 million in 2018, but fluctuate over time due to different lives of the intangibles. There is no material impact on the Company's cash flows. ASU 2017-01 In January 2017, the FASB issued ASU 2017-01, "Business Combinations: Clarifying the Definition of a Business" (Topic 805), which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The Company adopted the guidance effectively January 1, 2018 and applied prospectively to the transactions occurring on or after the adoption date. The adoption did not have material impacts on its financial position, results of operations or cash flows. ASU 2017-12 In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities" (Topic 815), which expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance also makes certain targeted improvements to simplify the application of hedge accounting guidance, ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness and ease the reporting on hedge ineffectiveness. ASU 2017-12 is effective for the Company in the first fiscal quarter of 2019 and early adoption is permitted. Entities should apply the guidance to existing cash flow and net investment hedge relationships using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings on the date of adoption. The guidance also provides transition relief to make it easier for entities to apply certain amendments to existing hedges where the hedge documentation needs to be modified. The Company early adopted the new guidance effectively January 1, 2018. The adoption did not impact opening retained earnings or have a material impact on the Company's consolidated financial statements. Additionally, upon adoption, the Company simplified its hedge accounting application by electing to include time value on currency cash flow hedge relationships prospectively. ASU 2018-02 In February 2018, the FASB issued ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", which permits companies to reclassify tax effects stranded in Accumulated Other Comprehensive Income as a result of tax reform to retained earnings. ASU 2018-02 is effective for the Company in the first fiscal quarter of 2019 and early adoption is permitted. Entities have the option to reclassify these amounts rather than require reclassification and also have the option to apply the guidance retrospectively or at the beginning of the period of adoption. The Company early adopted the new guidance effectively January 1, 2018. Upon adoption, the Company has recognized immaterial adjustments to retained earnings at the beginning of the period of adoption. Accounting Pronouncements Not Yet Effective ASU 2016-02 In February 2016, FASB issued ASU 2016-02, "Leases" (Topic 842), which requires lessees to recognize on the balance sheets a right-of-use asset, representing its right to use the underlying asset for the lease term, and a corresponding lease liability for all leases with terms greater than twelve months. The liability will be equal to the present value of lease payments while the right-of-use asset will be based on the liability, subject to adjustment, such as for initial direct costs. In addition, ASU 2016-02 expands the disclosure requirements for lessees. Upon adoption, the Company will be required to record a lease asset and lease liability related to its operating leases. The new standard requires a modified retrospective transition through a cumulative-effect adjustment as of the beginning of the earliest period presented in the financial statements, although the FASB recently approved an option for transition relief to not restate or make required disclosures under the new standard in comparative periods in the period of adoption. ASU 2016-02 is effective for the Company in the first fiscal quarter of 2019, with early adoption permitted. The Company will adopt the new standard effective January 1, 2019 and will elect to utilize the FASB recently approved option for transition relief and adopt the modified retrospective transition through a cumulative-effect adjustment as of the adoption date. In accordance with the transition relief, the Company will not restate or make required disclosures under the new standard in comparative periods in the period of adoption. While the Company is currently evaluating the impact of the adoption of ASU 2016-02, based on the lease portfolio as of September 30, 2018, the most significant impact will be the recognition of right-of-use ("ROU") assets in the range of $45 million to $55 million , and lease liabilities in the range of $50 million to $60 million on its statement of financial position for operating leases, with limited impact to its results of operations and cash flows. $11 million to $14 million of the expected ROU assets and $12 million to $15 million of the expected lease liabilities are attributable to Arlo based on its lease portfolio as of September 30, 2018, exclusive of the build-to-suite lease arrangement relating to Arlo's San Jose Corporate headquarters. However, the ultimate impact of adopting ASU 2016-02 will depend on the Company’s lease portfolio as of the adoption date. The Company has selected lease software to assist with the adoption and commenced implementation. The Company expects to complete the adoption, including implementing processes and procedures, completing the lease accounting software implementation, and evaluating necessary disclosures prior to the first fiscal quarter of 2019. ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" (Topic 326), which replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. Credit losses on available-for-sale debt securities with unrealized losses will be recognized as allowances for credit losses limited to the amount by which fair value is below amortized cost. ASU 2016-13 is effective for the Company beginning in the first fiscal quarter of 2020 and early adoption is permitted. T he Company continues to assess the potential impact of the new guidance, but does not expect it to have material impacts on its financial position, results of operations or cash flows. ASU 2018-15 In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for the Company beginning in the first fiscal quarter of 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company's financial position, results of operations or cash flows.
Revenue Recognition	Revenue Recognition Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration, the Company expects to be entitled to in exchange for those goods or services. The majority of revenue comes from product sales, consisting of sales of Arlo, Connected Home and Small and Medium Business ("SMB") hardware products to customers (retailers, distributors and service providers). Revenue is recognized at a point in time when control of the goods are transferred to the customer, generally occurring upon shipment or delivery dependent upon the terms of the underlying contract. The amount recognized reflects the consideration the Company expects to be entitled to in exchange for the transferred goods. The Company sells subscription paid services, such as to its Arlo end user customers where it provides customers access to its cloud services. Revenue for subscription sales is generally recognized over time on a ratable basis over the contract term beginning on the date that the service is made available to the customers at the time of registration. The subscription contracts are generally for 30 days or 12 months in length, billed in advance. Additionally, the Company sells technical support services and extended warranty which consist of telephone and internet access to technical support personnel, hardware replacement and updates to software features. All such service or support sales are typically recognized using an output measure of progress by looking at the time elapsed as the contracts generally provide the customer equal benefit throughout the contract period because the Company transfers control evenly by providing a stand-ready service. The Company also sells services bundled with hardware products and accounts for these sales in line with the multiple performance obligations guidance. Revenue from all sales types is recognized at transaction price, the amount the Company expects to be entitled to in exchange for transferring goods or providing services. Transaction price is calculated as selling price net of variable consideration which may include estimates for future returns, sales incentives and price protection related to current period product revenue. The Company’s standard obligation to its direct customers generally provides for a full refund in the event that such product is not merchantable or is found to be damaged or defective. In determining estimates for future returns, the Company estimates variable consideration at the expected value amounts which is based on management's analysis of historical data, channel inventory levels, current economic trends and changes in customer demand for the Company's products. Sales incentives and price protection are determined based on a combination of the actual amounts committed and through estimating future expenditure based upon historical customary business practice. Typically variable consideration does not need to be constrained as estimates are based on predictive historical data or future commitments that are planned and controlled by the Company. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. Contracts with Multiple Performance Obligations Some of the Company's contracts with customers contain multiple promised goods or services. Such contracts include hardware products with bundled services, networking hardware with embedded software, various software subscription services, and support. For these contracts, the Company accounts for the promises separately as individual performance obligations if they are distinct. Performance obligations are determined to be considered distinct if they are both capable of being distinct and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract. The embedded software on most of the hardware products is not considered distinct and therefore the combined hardware and incidental software are treated as one performance obligation and recognized at the point in time when control of product transfers to the customer. Service that is included with certain hardware products, mainly Arlo systems, is considered distinct and therefore the hardware and service are treated as separate performance obligations. After identifying the separate performance obligations, the transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices are generally determined based on the prices charged to customers or using an adjusted market assessment. For Arlo systems, standalone selling price of the hardware is directly observable from add-on camera and base station sales. Standalone selling price of the service is estimated using an adjusted market approach. Revenue is then recognized for each distinct performance obligation as control is transferred to the customer. In general, the hardware is recognized at time of shipping or delivery, while services and support are delivered over the stated service or support period or the estimated useful life. For Arlo systems, the hardware is recognized at the time control of the product transfers to the customer and the transaction price allocated to service is recognized over the estimated useful life of the system, beginning when the customer is expected to activate their account. Useful life of the systems is determined by industry norms, frequency of new model releases, and user history. Warranties Hardware products regularly include warranties to the end customers that consist of bug fixes, minor updates such that the product continues to function according to published specs in a dynamic environment, and phone support. These standard warranties are assurance type warranties and do not offer any services in addition to the assurance that the product will continue working as specified. Therefore, warranties are not considered separate performance obligations in the arrangement. Instead, the expected cost of warranty is accrued as expense in accordance with authoritative guidance. Extended warranties are sold separately and include additional support services. The transaction price for extended warranties is accounted for as service revenue and recognized over the life of the contract. Shipping and Handling Shipping and handling fees billed to customers are included 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. The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. Shipping and handling costs associated with outbound freight totaled $2.6 million and $7.8 million for the three and nine months ended September 30, 2018 , respectively, and $2.4 million and $6.9 million for the three and nine months ended October 1, 2017 , respectively. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performances obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods and services for which customer purchase orders have been accepted and that are scheduled or in the process of being scheduled for shipment. Contract Costs Costs to fulfill a contract are capitalized when they relate directly to an existing contract or specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations and are recoverable. These costs include direct cost incurred at inception of a contract which enables the fulfillment of the performance obligation and totaled $5.4 million as of September 30, 2018. There was no impairment of capitalized contract costs in the nine months ended September 30, 2018. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in Sales and marketing and General and administrative expenses. If the incremental direct costs of obtaining a contract, which consist of sales commissions, relate to a service recognized over a period longer than one year, costs are deferred and amortized in line with the related services over the period of benefit. Deferred commissions are classified as non-current based on the original amortization period of over one year. As of September 30, 2018 deferred commissions were not significant. Contract Balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are classified as Deferred revenue on the unaudited condensed consolidated balance sheets. Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Impacts of Adopting ASC 606	The following table summarizes the impacts of adopting ASC 606 on the Company’s unaudited condensed consolidated balance sheets for the fiscal year beginning January 1, 2018 as an adjustment to the opening balances: As of Adjustments As of December 31, January 1, (In thousands) Assets: Accounts receivable, net $ 412,798 $ 6,113 $ 418,911 Inventories $ 245,894 $ (2,368 ) $ 243,526 Other non-current assets $ 61,789 $ 4,344 $ 66,133 Liabilities: Accounts payable $ 111,915 $ (156 ) $ 111,759 Other accrued liabilities $ 222,470 $ 45,481 $ 267,951 Deferred revenue $ 55,284 $ (25,181 ) $ 30,103 Income taxes payable $ 7,015 $ 724 $ 7,739 Other non-current liabilities $ 22,099 $ (276 ) $ 21,823 Stockholders’ equity: Retained earnings $ 128,168 $ (12,503 ) $ 115,665 The following table summarizes the impacts of adopting ASC 606 on the Company’s unaudited condensed consolidated balance sheets as of September 30, 2018: As of September 30, 2018 As reported Adjustments Balance without adoption of ASC 606 (In thousands) Assets Accounts receivable, net $ 358,982 $ (13,147 ) $ 345,835 Inventories $ 330,516 $ 2,491 $ 333,007 Other non-current assets $ 94,047 $ (3,573 ) $ 90,474 Liabilities: Accounts payable $ 168,155 $ 110 $ 168,265 Other accrued liabilities $ 282,410 $ (53,196 ) $ 229,214 Deferred revenue $ 35,485 $ 18,326 $ 53,811 Income taxes payable $ 6,853 $ 1,554 $ 8,407 Other non-current liabilities $ 53,499 $ 1,884 $ 55,383 Stockholders’ equity: Retained earnings $ 124,488 $ 16,761 $ 141,249 Non-controlling interest $ 24,301 $ 332 $ 24,633 The following tables summarize the impacts of adopting ASC 606 on the Company’s unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2018: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As reported Adjustments Balance without adoption of ASC 606 As reported Adjustments Balance without adoption of ASC 606 (In thousands) (In thousands) Net revenue $ 400,586 $ 2,278 $ 402,864 $ 1,112,379 $ 5,974 $ 1,118,353 Cost of revenue $ 276,394 $ (569 ) $ 275,825 $ 774,510 $ (123 ) $ 774,387 Gross profit $ 124,192 $ 2,847 $ 127,039 $ 337,869 $ 6,097 $ 343,966 Provision for income taxes $ 2,780 $ 744 $ 3,524 $ 9,541 $ 1,507 $ 11,048 Net income $ 9,150 $ 2,103 $ 11,253 $ 9,510 $ 4,590 $ 14,100 Net Income (loss) attributable to non-controlling interest $ (799 ) $ 332 $ (467 ) $ (799 ) $ 332 $ (467 ) Net income attributable to NETGEAR, Inc. $ 9,949 $ 1,771 $ 11,720 $ 10,309 $ 4,258 $ 14,567
Schedule of Remaining Performance Obligations	The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018 : 1 year 2 years Greater than 2 years Total (In thousands) Performance obligations $ 109,309 $ 13,334 $ 8,956 $ 131,599
Schedule of Changes in Contract Balances	The following table reflects the changes in contract balances for the nine months ended September 30, 2018 : Balance Sheet Location September 30, 2018 January 1, 2018 (*) $ change % change (In thousands) Accounts receivable, net Accounts receivable, net $ 358,982 $ 418,911 $ (59,929 ) (14.3 )% Contract liabilities - current Deferred revenue $ 35,485 $ 30,103 $ 5,382 17.9 % Contract liabilities - non-current Other non-current liabilities $ 20,148 $ 13,839 $ 6,309 45.6 % _________________________ * Includes the adjustments made to the contracts which were not completed at the date of ASC 606 adoption using the modified retrospective method.
Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel	In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle-East and Africa (“EMEA”); and Asia Pacific ("APAC"). The tables also include reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in three segments: Arlo, Connected Home, and Small and Medium Business ("SMB"). Sales and usage-based taxes are excluded from net revenue. Three Months Ended September 30, 2018 October 1, 2017 (*) Arlo Connected Home SMB Total Arlo Connected Home SMB Total (In thousands) Geographic regions: Americas $ 112,851 $ 141,884 $ 34,049 $ 288,784 $ 88,134 $ 129,034 $ 27,220 $ 244,388 EMEA 11,759 27,619 25,539 64,917 17,178 22,731 22,252 62,161 APAC 6,564 25,181 15,140 46,885 5,148 31,334 12,452 48,934 Total net revenue $ 131,174 $ 194,684 $ 74,728 $ 400,586 $ 110,460 $ 183,099 $ 61,924 $ 355,483 Sales channels: Service provider $ 5,973 $ 30,769 $ 1,191 $ 37,933 $ 5,794 $ 44,631 $ 1,114 $ 51,539 Non-service provider 125,201 163,915 73,537 362,653 104,666 138,468 60,810 303,944 Total net revenue $ 131,174 $ 194,684 $ 74,728 $ 400,586 $ 110,460 $ 183,099 $ 61,924 $ 355,483 _________________________ * As noted above, prior period amounts have not been adjusted under the modified retrospective method. Nine Months Ended September 30, 2018 October 1, 2017 (*) Arlo Connected Home SMB Total Arlo Connected Home SMB Total (In thousands) Geographic regions: Americas $ 264,728 $ 422,759 $ 94,743 $ 782,230 $ 197,291 $ 396,912 $ 88,763 $ 682,966 EMEA 49,649 70,073 80,505 200,227 39,585 63,634 72,591 175,810 APAC 17,820 70,796 41,306 129,922 13,028 102,819 35,240 151,087 Total net revenue $ 332,197 $ 563,628 $ 216,554 $ 1,112,379 $ 249,904 $ 563,365 $ 196,594 $ 1,009,863 Sales channels: Service provider $ 21,951 $ 118,899 $ 2,954 $ 143,804 $ 15,743 $ 146,309 $ 2,492 $ 164,544 Non-service provider 310,246 444,729 213,600 968,575 234,161 417,056 194,102 845,319 Total net revenue $ 332,197 $ 563,628 $ 216,554 $ 1,112,379 $ 249,904 $ 563,365 $ 196,594 $ 1,009,863 _________________________ * As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Business Acquisition (Tables)

Business Acquisition (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The preliminary purchase price allocation is subject to certain post-closing adjustments and was as follows (in thousands) : Cash and cash equivalents 20 Accounts receivable 219 Inventories 760 Prepaid expenses and other current assets 500 Property and equipment 16 Intangibles 4,700 Non-current deferred income taxes 815 Goodwill 16,502 Accounts payable (1,322 ) Other accrued liabilities (35 ) Total purchase price 22,175 The allocation of the purchase price was as follows (in thousands): Cash and cash equivalents $ 8 Accounts receivable 11 Prepaid expenses and other current assets 130 Property and equipment 83 Intangibles 6,000 Goodwill 3,742 Accounts payable (40 ) Other accrued liabilities (74 ) Deferred tax liabilities (308 ) Total purchase price $ 9,552

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Schedule of Available-for-Sale Short-Term Investments	Available-for-sale short-term investments As of September 30, 2018 December 31, 2017 Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) U.S. treasuries $ 133,239 $ — $ (75 ) $ 133,164 $ 124,816 $ — $ (146 ) $ 124,670 Certificates of deposit 152 — — 152 162 — — 162 Total $ 133,391 $ — $ (75 ) $ 133,316 $ 124,978 $ — $ (146 ) $ 124,832
Schedule of Accounts Receivable, Net	Accounts receivable, net As of September 30, December 31, (In thousands) Gross accounts receivable $ 360,237 $ 437,891 Allowance for doubtful accounts (1,255 ) (1,257 ) Allowance for sales returns — * (20,189 ) Allowance for price protection — * (3,647 ) Total allowances (1,255 ) (25,093 ) Total accounts receivable, net $ 358,982 $ 412,798 _________________________ * Upon adoption of ASC 606, allowances for sales returns and price protection were reclassified to current liabilities as these reserve balances are considered refund liabilities. Refer to Note 3. Revenue Recognition , for additional information on the adoption impact.
Schedule of Inventories	Inventories As of September 30, December 31, (In thousands) Raw materials $ 2,072 $ 4,465 Finished goods 328,444 241,429 Total inventories $ 330,516 $ 245,894
Schedule of Property and Equipment, Net	Property and equipment, net As of September 30, December 31, (In thousands) Computer equipment $ 13,127 $ 10,114 Furniture, fixtures and leasehold improvements 21,811 21,640 Software 36,883 28,997 Machinery and equipment 66,426 62,490 Construction in progress* 21,858 — Total property and equipment, gross 160,105 123,241 Accumulated depreciation and amortization (103,458 ) (102,581 ) Total property and equipment, net $ 56,647 $ 20,660 * Arlo Technologies, Inc. entered into a build-to-suit lease arrangement in relation to its headquarters in San Jose, California. Refer to Note 10, Commitments and Contingencies , for details of this lease. The construction is expected to be completed in January 2019.
Schedule of Intangibles, Net	Intangibles, net As of September 30, 2018 As of December 31, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (In thousands) Technology $ 69,599 $ (63,691 ) $ 5,908 $ 66,599 $ (62,172 ) $ 4,427 Customer contracts and relationships 57,100 (42,749 ) 14,351 56,500 (37,430 ) 19,070 Other 12,145 (10,063 ) 2,082 11,045 (9,554 ) 1,491 Total intangibles, net $ 138,844 $ (116,503 ) $ 22,341 $ 134,144 $ (109,156 ) $ 24,988
Schedule of Estimated Amortization Expense Related to Intangibles	As of September 30, 2018 , estimated amortization expense related to finite-lived intangibles for the remaining years was as follows (in thousands): 2018 (remaining three months) $ 2,466 2019 8,544 2020 7,497 2021 2,029 2022 513 Thereafter 1,292 Total estimated amortization expense $ 22,341
Schedule of Other Non-Current Assets	Other non-current assets As of September 30, December 31, 2017 (In thousands) Non-current deferred income taxes $ 75,674 $ 49,468 Other 18,373 12,321 Total other non-current assets $ 94,047 $ 61,789
Schedule of Other Accrued Liabilities	Other accrued liabilities As of September 30, December 31, (In thousands) Sales and marketing $ 116,901 $ 96,153 Warranty obligation 18,526 * 75,824 Sales returns 78,014 * — Freight 8,108 10,567 Other 60,861 39,926 Total other accrued liabilities $ 282,410 $ 222,470 _________________________ * Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Consolidated Balance Sheets	The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of September 30, 2018 and December 31, 2017 are summarized as follows: Derivative Assets Balance Sheet Location September 30, 2018 December 31, 2017 Balance Sheet Location September 30, 2018 December 31, 2017 (In thousands) (In thousands) Derivative assets not designated as hedging instruments Prepaid expenses and other current assets $ 995 $ 1,314 Other accrued liabilities $ 189 $ 7,128 Derivative assets designated as hedging instruments Prepaid expenses and other current assets 33 485 Other accrued liabilities 20 1,064 Total $ 1,028 $ 1,799 $ 209 $ 8,192
Schedule of Offsetting of Derivative Assets	The following tables set forth the offsetting of derivative assets as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) HSBC $ 272 $ — $ 272 $ (59 ) $ — $ 213 Bank of America 62 — 62 (10 ) — 52 Wells Fargo 694 — 694 (140 ) — 554 Total $ 1,028 $ — $ 1,028 $ (209 ) $ — $ 819 As of December 31, 2017 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) Bank of America $ 1,664 $ — $ 1,664 $ (1,664 ) $ — $ — Wells Fargo 135 — 135 (135 ) — — Total $ 1,799 $ — $ 1,799 $ (1,799 ) $ — $ —
Schedule of Offsetting of Derivative Liabilities	The following tables set forth the offsetting of derivative liabilities as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) HSBC $ 59 $ — $ 59 $ (59 ) $ — $ — Bank of America $ 10 $ — $ 10 $ (10 ) $ — $ — Wells Fargo 140 — 140 (140 ) — — Total $ 209 $ — $ 209 $ (209 ) $ — $ — As of December 31, 2017 Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount (In thousands) Bank of America $ 7,815 $ — $ 7,815 $ (1,664 ) $ — $ 6,151 Wells Fargo 377 — 377 (135 ) — 242 Total $ 8,192 $ — $ 8,192 $ (1,799 ) $ — $ 6,393
Schedule of Effects and Locations of Gains or Losses Recognized in Income	The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the three months ended September 30, 2018 are summarized as follows: Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges Three Months Ended September 30, 2018 Net revenue Cost of revenue Research and development Sales and marketing General and administrative (In thousands) Statements of operations $ 400,586 $ 276,394 $ 35,253 $ 49,005 $ 23,268 Gains (losses) on cash flow hedge $ 1,031 $ (7 ) $ 2 $ (138 ) $ (41 ) The effects of the Company's cash flow hedges on the unaudited condensed statements of operations for the nine months ended September 30, 2018 are summarized as follows: Location and Amount of Gains (Losses) Recognized in Income on Cash Flow Hedges Nine Months Ended September 30, 2018 Net revenue Cost of revenue Research and development Sales and marketing General and administrative (In thousands) Statements of operations $ 1,112,379 $ 774,510 $ 95,571 $ 139,646 $ 60,354 Gains (losses) on cash flow hedge $ 246 $ (8 ) $ 88 $ (65 ) $ (50 )
Schedule of Company's Derivative Instruments on Other Comprehensive Income and the Consolidated Statement of Operations	The pre-tax effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2018 and October 1, 2017 are summarized as follows: Derivatives Designated as Hedging Instruments Three Months Ended September 30, 2018 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ 895 Net revenue $ 1,031 Foreign currency forward contracts — Cost of revenue (7 ) Foreign currency forward contracts — Research and development 2 Foreign currency forward contracts — Sales and marketing (138 ) Foreign currency forward contracts — General and administrative (41 ) Total $ 895 $ 847 _________________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended September 30, 2018 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ 1,075 Net revenue $ 246 Foreign currency forward contracts — Cost of revenue (8 ) Foreign currency forward contracts — Research and development 88 Foreign currency forward contracts — Sales and marketing (65 ) Foreign currency forward contracts — General and administrative (50 ) Total $ 1,075 $ 211 _________________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Three Months Ended October 1, 2017 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ (3,538 ) Net revenue $ (4,401 ) Foreign currency forward contracts — Cost of revenue 19 Foreign currency forward contracts — Research and development 84 Foreign currency forward contracts — Sales and marketing 629 Foreign currency forward contracts — General and administrative 109 Total $ (3,538 ) $ (3,560 ) _______________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives. Derivatives Designated as Hedging Instruments Nine Months Ended October 1, 2017 Gains (Losses) Recognized in OCI - Effective Portion Location of Gains (Losses) Reclassified from OCI into Income - Effective Portion Gains (Losses) Reclassified from OCI into Income - Effective Portion (1) (In thousands) Cash flow hedges: Foreign currency forward contracts $ (10,590 ) Net revenue $ (3,374 ) Foreign currency forward contracts — Cost of revenue 5 Foreign currency forward contracts — Research and development 10 Foreign currency forward contracts — Sales and marketing 380 Foreign currency forward contracts — General and administrative 67 Total $ (10,590 ) $ (2,912 ) _______________________ (1) Refer to Note 11, Stockholders' Equity , which summarizes the accumulated other comprehensive income activity related to derivatives.
Schedule of Derivatives not Designated as Hedging Instruments	The effects of the Company’s non-designated hedge included in Other income (expense), net in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and October 1, 2017 are as follows: Derivatives Not Designated as Hedging Instruments Location of Gains (Losses) Recognized in Income on Derivative Three Months Ended Nine Months Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 (In thousands) Foreign currency forward contracts Other income (expense), net $ 934 $ (1,925 ) $ 3,963 $ (6,171 )

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Net Income Per Share	Net income per share attributable to NETGEAR, Inc. for the three and nine months ended September 30, 2018 and October 1, 2017 were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands, except per share data) Numerator: Net income $ 9,150 $ 20,794 $ 9,510 $ 51,370 Less: Net loss attributable to non-controlling interest (799 ) — (799 ) — Net income attributable to NETGEAR, Inc. $ 9,949 $ 20,794 $ 10,309 $ 51,370 Denominator: Weighted average common shares - basic 31,802 31,704 31,634 32,335 Potentially dilutive common share equivalent 1,172 689 1,192 934 Weighted average common shares - dilutive 32,974 32,393 32,826 33,269 Basic net income per share attributable to NETGEAR, Inc. $ 0.31 $ 0.66 $ 0.33 $ 1.59 Diluted net income per share attributable to NETGEAR, Inc. $ 0.30 $ 0.64 $ 0.31 $ 1.54 Anti-dilutive employee stock-based awards, excluded 450 975 874 431

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Changes in Warranty Obligation	Changes in the Company’s warranty obligation, which is included in Other accrued liabilities in the unaudited condensed consolidated balance sheets, were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Balance as of beginning of the period $ 18,759 $ 60,451 $ 75,824 $ 58,520 Reclassified to sales returns upon adoption of ASC 606 — — (57,860 ) * — Provision for warranty obligation made during the period 857 35,815 3,798 97,083 Settlements made during the period (1,090 ) (28,716 ) (3,236 ) (88,053 ) Balance at end of period $ 18,526 $ 67,550 $ 18,526 $ 67,550 ________________________ * Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
Schedule of Accumulated Other Comprehensive Income	The following table sets forth the changes in accumulated other comprehensive income ("AOCI") by component for the nine months ended September 30, 2018 and October 1, 2017 : Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total (In thousands) Balance as of December 31, 2017 $ (146 ) $ (838 ) $ 133 $ (851 ) Other comprehensive income (loss) before reclassifications 72 1,075 (165 ) 982 Less: Amount reclassified from accumulated other comprehensive income — 211 (44 ) 167 Net current period other comprehensive income (loss) 72 864 (121 ) 815 Balance as of September 30, 2018 $ (74 ) $ 26 $ 12 $ (36 ) Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total (In thousands) Balance as of December 31, 2016 $ (31 ) $ 2,230 $ (261 ) $ 1,938 Other comprehensive income (loss) before reclassifications (41 ) (10,590 ) 2,038 (8,593 ) Less: Amount reclassified from accumulated other comprehensive income — (2,912 ) 1,019 (1,893 ) Net current period other comprehensive income (loss) (41 ) (7,678 ) 1,019 (6,700 ) Balance as of October 1, 2017 $ (72 ) $ (5,448 ) $ 758 $ (4,762 )
Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss)	The following tables provide details about significant amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2018 and October 1, 2017 : Details about Accumulated Other Comprehensive Income Components Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Amount Reclassified from AOCI Affected Line Item in the Statements of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations (In thousands) (In thousands) Gains (losses) on cash flow hedge: Foreign currency forward contracts $ 1,031 Net revenue $ 246 Net revenue Foreign currency forward contracts (7 ) Cost of revenue (8 ) Cost of revenue Foreign currency forward contracts 2 Research and development 88 Research and development Foreign currency forward contracts (138 ) Sales and marketing (65 ) Sales and marketing Foreign currency forward contracts (41 ) General and administrative (50 ) General and administrative 847 Total before tax 211 Total before tax (178 ) Tax impact (44 ) Tax impact $ 669 Total, net of tax $ 167 Total, net of tax Details about Accumulated Other Comprehensive Income Components Three Months Ended October 1, 2017 Nine Months Ended October 1, 2017 Amount Reclassified from AOCI Affected Line Item in the Statements of Operations Amount Reclassified from AOCI Affected Line Item in the Statement of Operations (In thousands) (In thousands) Gains (losses) on cash flow hedge: Foreign currency forward contracts $ (4,401 ) Net revenue $ (3,374 ) Net revenue Foreign currency forward contracts 19 Cost of revenue 5 Cost of revenue Foreign currency forward contracts 84 Research and development 10 Research and development Foreign currency forward contracts 629 Sales and marketing 380 Sales and marketing Foreign currency forward contracts 109 General and administrative 67 General and administrative (3,560 ) Total before tax (2,912 ) Total before tax 1,246 Tax impact 1,019 Tax impact $ (2,314 ) Total, net of tax $ (1,893 ) Total, net of tax

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2018
Employee Benefits and Share-based Compensation, Noncash [Abstract]
Schedule of Stock Option Activity	Stock option activity during the nine months ended September 30, 2018 was as follows: Number of shares Weighted Average Exercise Price Per Share (In thousands) (In dollars) Outstanding as of December 31, 2017 1,879 $ 34.08 Granted 378 69.70 Exercised (226 ) 23.02 Expired (6 ) 21.45 Outstanding as of September 30, 2018 2,025 $ 42.00
Schedule of RSU Activity	RSU activity during the nine months ended September 30, 2018 was as follows: Number of shares Weighted Average Grant Date Fair Value Per Share (In thousands) (In dollars) Outstanding as of December 31, 2017 1,130 $ 43.22 Granted 933 68.27 Vested (410 ) 40.94 Cancelled (53 ) 54.78 Outstanding as of September 30, 2018 1,600 $ 58.04
Schedule of Weighted Average Assumptions	The table below sets forth the weighted average assumptions used to estimate the fair value of Arlo's option grants during the three months ended September 30, 2018 . Three Months Ended September 30, Expected life (in years) 6.3 Risk-free interest rate 2.86 % Expected volatility 40.0 % Dividend yield — The table below sets forth the weighted average assumptions used to estimate the fair value of option grants and purchase rights granted under the ESPP during the three and nine months ended September 30, 2018 and October 1, 2017 . Three Months Ended Nine Months Ended Stock Options ESPP Stock Options ESPP September 30, October 1, September 30, October 1, September 30, October 1, September 30, October 1, Expected life (in years) 4.4 NA 0.5 0.5 4.4 4.4 0.5 0.5 Risk-free interest rate 2.79 % NA 2.22 % 1.12 % 2.36 % 1.65 % 2.00 % 0.93 % Expected volatility 33.5 % NA 38.8 % 31.3 % 31.1 % 31.6 % 37.9 % 29.7 % Dividend yield — NA — — — — — —
Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, Restricted Stock Awards, and the Employee Stock Purchase Plan	The following table sets forth the stock-based compensation expense resulting from stock options, RSUs and the ESPP included in the Company’s unaudited condensed consolidated statements of operations and includes $0.9 million expenses related to Arlo's equity grants described more fully in the section below: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) Cost of revenue $ 853 $ 499 $ 2,571 $ 1,477 Research and development 1,907 1,056 5,431 3,748 Sales and marketing 2,728 1,654 7,847 4,339 General and administrative 4,066 2,374 10,825 6,848 Total stock-based compensation $ 9,554 $ 5,583 $ 26,674 $ 16,412

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of Reportable Segments 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 : Three Months Ended Nine Months Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 (In thousands, except percentage data) Net revenue: Arlo $ 131,174 $ 110,460 $ 332,197 $ 249,904 Connected Home 194,684 183,099 563,628 563,365 SMB 74,728 61,924 216,554 196,594 Total net revenue $ 400,586 $ 355,483 $ 1,112,379 $ 1,009,863 Contribution income: Arlo $ 8,495 $ 15,230 $ 12,813 $ 18,723 Arlo contribution margin 6.5 % 13.8 % 3.9 % 7.5 % Connected Home $ 31,283 $ 24,546 $ 87,143 $ 81,382 Connected Home contribution margin 16.1 % 13.4 % 15.5 % 14.4 % SMB $ 21,200 $ 12,583 $ 58,130 $ 47,839 SMB contribution margin 28.4 % 20.3 % 26.8 % 24.3 % Total segment contribution income $ 60,978 $ 52,359 $ 158,086 $ 147,944 Corporate and unallocated costs (32,454 ) (18,740 ) (82,003 ) (53,974 ) Amortization of intangibles (1) (2,304 ) (2,608 ) (7,111 ) (10,136 ) Stock-based compensation expense (9,554 ) (5,583 ) (26,674 ) (16,412 ) Separation expense (7,054 ) — (25,822 ) — Restructuring and other charges (1 ) (19 ) (1,368 ) (78 ) Litigation reserves, net — (15 ) (5 ) (68 ) Interest income 1,490 501 3,310 1,388 Other income (expense), net 829 666 638 1,384 Income before income taxes $ 11,930 $ 26,561 $ 19,051 $ 70,048 _________________________ (1) Amount excludes amortization expense related to patents within purchased intangibles in cost of revenue.
Schedule of Net Revenue by Geography	The following table shows net revenue by geography for the periods indicated: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (In thousands) United States (U.S.) $ 280,639 $ 235,584 $ 762,619 $ 663,096 Americas (excluding U.S.) 8,145 8,804 19,611 19,870 EMEA 64,917 62,161 200,227 175,810 APAC 46,885 48,934 129,922 151,087 Total net revenue $ 400,586 $ 355,483 $ 1,112,379 $ 1,009,863
Schedule of Long-Lived Asset By Geographic Areas	Long-lived assets include purchased intangibles, goodwill and property and equipment. The Company's property and equipment are located in the following geographic locations: As of September 30, December 31, (In thousands) United States ("U.S.") $ 41,799 $ 9,216 Americas (excluding U.S.) 4,189 1,807 EMEA 386 141 China 7,021 6,803 APAC (excluding China) 3,252 2,693 Total property and equipment, net $ 56,647 $ 20,660

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables summarize assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 : As of September 30, 2018 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Cash equivalents: money-market funds $ 37,228 $ 37,228 $ — $ — Available-for-sale securities: U.S. treasuries (1) 133,164 133,164 — — Available-for-sale securities: certificates of deposit (1) 152 152 — — Trading securities: mutual funds (1) 2,857 2,857 — — Foreign currency forward contracts (2) 1,028 — 1,028 — Total assets measured at fair value $ 174,429 $ 173,401 $ 1,028 $ — Liabilities: Foreign currency forward contracts (3) $ 209 $ — $ 209 $ — Contingent consideration (4) 5,953 $ — $ — 5,953 Total liabilities measured at fair value $ 6,162 $ — $ 209 $ 5,953 _________________________ (1) Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets. (2) Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets. (3) Included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets. (4) Included in Other non-current accrued liabilities on the Company’s unaudited condensed consolidated balance sheets. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with the acquisition of Meural that is contingent upon the achievement of certain technical and service revenue milestones milestones. Refer to Note 5, Business Acquisition, regarding detailed disclosures on the determination of fair value of the contingent consideration. The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 : As of December 31, 2017 Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Cash equivalents: money-market funds $ 12,606 $ 12,606 $ — $ — Available-for-sale securities: U.S. treasuries (1) 124,670 124,670 — — Available-for-sale securities: certificates of deposit (1) 162 162 — — Trading securities: mutual funds (1) 2,094 2,094 — — Foreign currency forward contracts (2) 1,799 — 1,799 — Total assets measured at fair value $ 141,331 $ 139,532 $ 1,799 $ — Liabilities: Foreign currency forward contracts (3) $ 8,192 $ — $ 8,192 $ — Total liabilities measured at fair value $ 8,192 $ — $ 8,192 $ — _________________________ (1) Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets. (2) Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets. (3) Included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets.

Restructuring and Other Charg_2

Restructuring and Other Charges (Tables)	9 Months Ended
	Sep. 30, 2018
Restructuring and Related Activities [Abstract]
Summary of Activity Related to Accrued Restructuring and Other Charges	The following table provides a summary of the activity related to accrued restructuring and other charges for the nine months ended September 30, 2018 : Accrued Restructuring and Other Charges at December 31, 2017 Additions Cash Payments Adjustments Accrued Restructuring and Other Charges at September 30, 2018 (In thousands) Restructuring Employee termination charges $ 6 $ 917 $ (702 ) $ (10 ) $ 211 Lease contract termination and other charges 1,129 464 (1,354 ) (3 ) 236 Total Restructuring and other charges $ 1,135 $ 1,381 $ (2,056 ) $ (13 ) $ 447

The Company and Basis of Pres_2

The Company and Basis of Presentation (Details)	Sep. 30, 2018	Aug. 07, 2018
Arlo
Subsidiary, Sale of Stock [Line Items]
Ownership percentage by parent	84.20%	84.20%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Jan. 01, 2019	Jan. 01, 2018
Accounting Standards Update 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax asset			$ 21.1
Accounting Standards Update 2016-16 | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase in tax expense	$ 1.3
Minimum | Accounting Standards Update 2016-02 | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ASU 2016-02 expected right-to-use assets impact		$ 45
ASU 2016-02 expected lease liability impact		50
Maximum | Accounting Standards Update 2016-02 | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ASU 2016-02 expected right-to-use assets impact		55
ASU 2016-02 expected lease liability impact		60
Arlo | Minimum | Accounting Standards Update 2016-02 | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ASU 2016-02 expected right-to-use assets impact		11
ASU 2016-02 expected lease liability impact		12
Arlo | Maximum | Accounting Standards Update 2016-02 | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ASU 2016-02 expected right-to-use assets impact		14
ASU 2016-02 expected lease liability impact		$ 15

Revenue Recognition (Balance Sh

Revenue Recognition (Balance Sheet Impact) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets:
Accounts receivable, net	$ 358,982	$ 418,911	$ 412,798
Inventories	330,516	243,526	245,894
Other non-current assets	94,047	66,133	61,789
Liabilities:
Accounts payable	168,155	111,759	111,915
Other accrued liabilities	282,410	267,951	222,470
Deferred revenue	35,485	30,103	55,284
Income taxes payable	6,853	7,739	7,015
Other non-current liabilities	53,499	21,823	22,099
Stockholders’ equity:
Retained earnings	124,488	115,665	128,168
Non-controlling interest	24,301		0
Balance without adoption of ASC 606
Assets:
Accounts receivable, net	345,835		412,798
Inventories	333,007		245,894
Other non-current assets	90,474		61,789
Liabilities:
Accounts payable	168,265		111,915
Other accrued liabilities	229,214		222,470
Deferred revenue	53,811		55,284
Income taxes payable	8,407		7,015
Other non-current liabilities	55,383		22,099
Stockholders’ equity:
Retained earnings	141,249		$ 128,168
Non-controlling interest	24,633
Adjustments | Accounting Standards Update 2014-09
Assets:
Accounts receivable, net	(13,147)	6,113
Inventories	2,491	(2,368)
Other non-current assets	(3,573)	4,344
Liabilities:
Accounts payable	110	(156)
Other accrued liabilities	(53,196)	45,481
Deferred revenue	18,326	(25,181)
Income taxes payable	1,554	724
Other non-current liabilities	1,884	(276)
Stockholders’ equity:
Retained earnings	16,761	$ (12,503)
Non-controlling interest	$ 332

Revenue Recognition (Income Sta

Revenue Recognition (Income Statement Impact) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2018	Jul. 01, 2018	Apr. 01, 2018	Oct. 01, 2017	Jul. 02, 2017	Apr. 02, 2017	Sep. 30, 2018	Oct. 01, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 400,586			$ 355,483			$ 1,112,379	$ 1,009,863
Cost of revenue	276,394			252,388			774,510	717,900
Gross profit	124,192			103,095			337,869	291,963
Provision for income taxes	2,780			5,767			9,541	18,678
Net income	9,150			20,794			9,510	51,370
Net loss attributable to non-controlling interest	(799)			0			(799)	0
Net income attributable to NETGEAR, Inc.	9,949	$ (5,230)	$ 5,590	$ 20,794	$ 14,582	$ 15,994	10,309	$ 51,370
Adjustments | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	2,278						5,974
Cost of revenue	(569)						(123)
Gross profit	2,847						6,097
Provision for income taxes	744						1,507
Net income	2,103						4,590
Net loss attributable to non-controlling interest	332						332
Net income attributable to NETGEAR, Inc.	1,771						4,258
Balance without adoption of ASC 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	402,864						1,118,353
Cost of revenue	275,825						774,387
Gross profit	127,039						343,966
Provision for income taxes	3,524						11,048
Net income	11,253						14,100
Net loss attributable to non-controlling interest	(467)						(467)
Net income attributable to NETGEAR, Inc.	$ 11,720						$ 14,567

Revenue Recognition (Narrative)

Revenue Recognition (Narrative) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Oct. 01, 2017USD ($)	Sep. 30, 2018USD ($)regionsegment	Oct. 01, 2017USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Shipping and handling costs associated with outbound freight	$ 2,600,000	$ 2,400,000	$ 7,800,000	$ 6,900,000
Capitalized contract costs	$ 5,400,000		5,400,000
Impairment recorded on capitalized contract cost			0
Revenue deferred due to unsatisfied performance obligations			46,200,000
Revenue recognized for satisfaction of performance obligations over time			34,500,000
Recognized revenue that was included in contract liability balance at beginning of period			$ 24,100,000
Number of geographic regions in which the Company conducts business | region			3
Number of operating segments | segment			3
Number of reportable segments | segment			3
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
General length of subscription contracts			30 days
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
General length of subscription contracts			12 months

Revenue Recognition (Schedule o

Revenue Recognition (Schedule of Remaining Performance Obligations) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations	$ 131,599
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue from Contract with Customer [Abstract]
Performance obligations	$ 109,309
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue from Contract with Customer [Abstract]
Performance obligations	$ 13,334
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Revenue from Contract with Customer [Abstract]
Performance obligations	$ 8,956
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, expected timing of satisfaction

Revenue Recognition (Schedule_2

Revenue Recognition (Schedule of Changes in Contract Balances and Impacts of Entries to Adopt ASC 606) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Accounts receivable, net
Beginning balance	$ 418,911	[1]
$ change	$ (59,929)
% change	(14.30%)
Ending balance	$ 358,982
Contract liabilities - current
Beginning balance	30,103	[1]
$ change	$ 5,382
% change	17.90%
Ending balance	$ 35,485
Contract liabilities - non-current
Beginning balance	13,839	[1]
$ change	$ 6,309
% change	45.60%
Ending balance	$ 20,148
[1]	Includes the adjustments made to the contracts which were not completed at the date of ASC 606 adoption using the modified retrospective method.

Revenue Recognition (Schedule_3

Revenue Recognition (Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel) (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	[1]	Sep. 30, 2018	Oct. 01, 2017	[1]
Disaggregation of Revenue [Line Items]
Total net revenue	$ 400,586	$ 355,483		$ 1,112,379	$ 1,009,863
Service provider
Disaggregation of Revenue [Line Items]
Total net revenue	37,933	51,539		143,804	164,544
Non-service provider
Disaggregation of Revenue [Line Items]
Total net revenue	362,653	303,944		968,575	845,319
Americas
Disaggregation of Revenue [Line Items]
Total net revenue	288,784	244,388		782,230	682,966
EMEA
Disaggregation of Revenue [Line Items]
Total net revenue	64,917	62,161		200,227	175,810
APAC
Disaggregation of Revenue [Line Items]
Total net revenue	46,885	48,934		129,922	151,087
Arlo
Disaggregation of Revenue [Line Items]
Total net revenue	131,174	110,460		332,197	249,904
Arlo | Service provider
Disaggregation of Revenue [Line Items]
Total net revenue	5,973	5,794		21,951	15,743
Arlo | Non-service provider
Disaggregation of Revenue [Line Items]
Total net revenue	125,201	104,666		310,246	234,161
Arlo | Americas
Disaggregation of Revenue [Line Items]
Total net revenue	112,851	88,134		264,728	197,291
Arlo | EMEA
Disaggregation of Revenue [Line Items]
Total net revenue	11,759	17,178		49,649	39,585
Arlo | APAC
Disaggregation of Revenue [Line Items]
Total net revenue	6,564	5,148		17,820	13,028
Connected Home
Disaggregation of Revenue [Line Items]
Total net revenue	194,684	183,099		563,628	563,365
Connected Home | Service provider
Disaggregation of Revenue [Line Items]
Total net revenue	30,769	44,631		118,899	146,309
Connected Home | Non-service provider
Disaggregation of Revenue [Line Items]
Total net revenue	163,915	138,468		444,729	417,056
Connected Home | Americas
Disaggregation of Revenue [Line Items]
Total net revenue	141,884	129,034		422,759	396,912
Connected Home | EMEA
Disaggregation of Revenue [Line Items]
Total net revenue	27,619	22,731		70,073	63,634
Connected Home | APAC
Disaggregation of Revenue [Line Items]
Total net revenue	25,181	31,334		70,796	102,819
SMB
Disaggregation of Revenue [Line Items]
Total net revenue	74,728	61,924		216,554	196,594
SMB | Service provider
Disaggregation of Revenue [Line Items]
Total net revenue	1,191	1,114		2,954	2,492
SMB | Non-service provider
Disaggregation of Revenue [Line Items]
Total net revenue	73,537	60,810		213,600	194,102
SMB | Americas
Disaggregation of Revenue [Line Items]
Total net revenue	34,049	27,220		94,743	88,763
SMB | EMEA
Disaggregation of Revenue [Line Items]
Total net revenue	25,539	22,252		80,505	72,591
SMB | APAC
Disaggregation of Revenue [Line Items]
Total net revenue	$ 15,140	$ 12,452		$ 41,306	$ 35,240
[1]	As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Planned Separation of Arlo (Det

Planned Separation of Arlo (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 07, 2018	Aug. 07, 2018	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Aug. 02, 2018
Business Acquisition [Line Items]
Proceeds from Arlo initial public offering, net of offering costs					$ 170,246	$ 0
Separation expense			$ 7,054	$ 0	$ 25,822	$ 0	$ 27,300
Arlo
Business Acquisition [Line Items]
Proceeds from Arlo initial public offering, net of offering costs		$ 170,200
Shares outstanding (in shares)	74,247,000	74,247,000
Arlo | IPO
Business Acquisition [Line Items]
Per share price of stock sold (USD per share)								$ 16
Arlo | Underwriter option
Business Acquisition [Line Items]
Number of shares issued in transaction (in shares)	1,532,250
Arlo
Business Acquisition [Line Items]
Shares outstanding (in shares)	62,500,000	62,500,000
Ownership percentage by parent	84.20%	84.20%	84.20%		84.20%		84.20%

Business Acquisition (Narrative

Business Acquisition (Narrative) (Details)	Aug. 06, 2018USD ($)	Nov. 30, 2016USD ($)	Sep. 30, 2018USD ($)	Apr. 02, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2017USD ($)
Business Acquisition [Line Items]
Goodwill			$ 101,965,000			$ 85,463,000
Meural
Business Acquisition [Line Items]
Total purchase price	$ 22,200,000
Purchase price, cash paid			14,400,000
Prior equity interest settlement	1,500,000
Fair value of contingent consideration	6,300,000		$ 5,900,000
Contingent consideration liability, maximum amount of each milestone	3,500,000
Goodwill	16,502,000
Non-current deferred income taxes	815,000
Intangibles	4,700,000
Meural | Developed Technology Rights
Business Acquisition [Line Items]
Intangibles	3,000,000
Meural | Trade Names
Business Acquisition [Line Items]
Intangibles	$ 600,000
Acquired intangible assets, estimated useful life	3 years
Meural | Customer Relationships
Business Acquisition [Line Items]
Intangibles	$ 600,000
Acquired intangible assets, estimated useful life	2 years
Meural | Database
Business Acquisition [Line Items]
Intangibles	$ 500,000
Acquired intangible assets, estimated useful life	7 years
Meural | Technology
Business Acquisition [Line Items]
Acquired intangible assets, estimated useful life	7 years
Placemeter
Business Acquisition [Line Items]
Total purchase price		$ 9,600,000
Purchase price, cash paid				$ 800,000	$ 8,800,000
Goodwill		3,742,000
Intangibles		6,000,000
Deferred tax liabilities		308,000
Placemeter | Database
Business Acquisition [Line Items]
Intangibles		200,000
Placemeter | Technology
Business Acquisition [Line Items]
Intangibles		$ 5,500,000
Acquired intangible assets, estimated useful life		4 years
Placemeter | Non-compete Agreements
Business Acquisition [Line Items]
Intangibles		$ 300,000
Discount rate used to calculate present value of future cash flows		20.00%
Acquired intangible assets, estimated useful life		3 years
Domestic Tax Authority | Meural
Business Acquisition [Line Items]
Goodwill deductible for income tax purposes	$ 0
Domestic Tax Authority | Placemeter
Business Acquisition [Line Items]
Goodwill deductible for income tax purposes		$ 0
State and Local Jurisdiction | Meural
Business Acquisition [Line Items]
Goodwill deductible for income tax purposes	$ 0
State and Local Jurisdiction | Placemeter
Business Acquisition [Line Items]
Goodwill deductible for income tax purposes		$ 0
Measurement Input, Discount Rate | Placemeter
Business Acquisition [Line Items]
Intangible asset, measurement input		0.150
Measurement Input, Discount Rate | Minimum | Meural
Business Acquisition [Line Items]
Intangible asset, measurement input	0.160
Measurement Input, Discount Rate | Maximum | Meural
Business Acquisition [Line Items]
Intangible asset, measurement input	0.190

Business Acquisition (Assets Ac

Business Acquisition (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Aug. 06, 2018	Dec. 31, 2017	Nov. 30, 2016
Business Acquisition [Line Items]
Goodwill	$ 101,965		$ 85,463
Meural
Business Acquisition [Line Items]
Cash and cash equivalents		$ 20
Accounts receivable		219
Inventories		760
Prepaid expenses and other current assets		500
Property and equipment		16
Intangibles		4,700
Non-current deferred income taxes		815
Goodwill		16,502
Accounts payable		(1,322)
Other accrued liabilities		(35)
Total purchase price		$ 22,175
Placemeter
Business Acquisition [Line Items]
Cash and cash equivalents				$ 8
Accounts receivable				11
Prepaid expenses and other current assets				130
Property and equipment				83
Intangibles				6,000
Goodwill				3,742
Accounts payable				(40)
Other accrued liabilities				(74)
Deferred tax liabilities				(308)
Total purchase price				$ 9,552

Balance Sheet Components (Sched

Balance Sheet Components (Schedule of Available-for-Sale Short-Term Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Cost	$ 133,391	$ 124,978
Unrealized Gains	0	0
Unrealized Losses	(75)	(146)
Estimated Fair Value	133,316	124,832
U.S. treasuries
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Cost	133,239	124,816
Unrealized Gains	0	0
Unrealized Losses	(75)	(146)
Estimated Fair Value	133,164	124,670
Certificates of deposit
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Cost	152	162
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	$ 152	$ 162

Balance Sheet Components (Equit

Balance Sheet Components (Equity Method Investments Without Determinable Fair Values) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Equity investments without determinable fair values	$ 1,600,000		$ 4,500,000
Impairment charges on investment	$ 1,400,000	$ 0

Balance Sheet Components (Sch_2

Balance Sheet Components (Schedule of Accounts Receivable and Related Allowances) (Details) - USD ($) $ in Thousands	Sep. 30, 2018		Jan. 01, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 360,237			$ 437,891
Total allowances	(1,255)			(25,093)
Total accounts receivable, net	358,982		$ 418,911	412,798
Allowance for doubtful accounts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total allowances	(1,255)			(1,257)
Allowance for sales returns
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total allowances	0	[1]		(20,189)
Allowance for price protection
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total allowances	$ 0	[1]		$ (3,647)
[1]	Upon adoption of ASC 606, allowances for sales returns and price protection were reclassified to current liabilities as these reserve balances are considered refund liabilities. Refer to Note 3. Revenue Recognition, for additional information on the adoption impact.

Balance Sheet Components (Sch_3

Balance Sheet Components (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 2,072		$ 4,465
Finished goods	328,444		241,429
Total inventories	$ 330,516	$ 243,526	$ 245,894

Balance Sheet Components (Sch_4

Balance Sheet Components (Schedule of Property and Equipment, Net) (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Total property and equipment, gross		$ 160,105	$ 123,241
Accumulated depreciation and amortization		(103,458)	(102,581)
Total property and equipment, net		56,647	20,660
Computer equipment
Total property and equipment, gross		13,127	10,114
Furniture, fixtures and leasehold improvements
Total property and equipment, gross		21,811	21,640
Software
Total property and equipment, gross		36,883	28,997
Machinery and equipment
Total property and equipment, gross		66,426	62,490
Construction in progress
Total property and equipment, gross	[1]	$ 21,858	$ 0
[1]	Arlo Technologies, Inc. entered into a build-to-suit lease arrangement in relation to its headquarters in San Jose, California. Refer to Note 10, Commitments and Contingencies, for details of this lease. The construction is expected to be completed in January 2019.

Balance Sheet Components (Prope

Balance Sheet Components (Property and Equipment, Other Information) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Balance Sheet Related Disclosures [Abstract]
Depreciation	$ 3.6	$ 3.3	$ 10.2	$ 9.8

Balance Sheet Components (Sch_5

Balance Sheet Components (Schedule of Intangibles, Net) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Intangible Assets [Line Items]
Gross	$ 138,844	$ 134,144
Accumulated Amortization	(116,503)	(109,156)
Net	22,341	24,988
Technology
Intangible Assets [Line Items]
Gross	69,599	66,599
Accumulated Amortization	(63,691)	(62,172)
Net	5,908	4,427
Customer contracts and relationships
Intangible Assets [Line Items]
Gross	57,100	56,500
Accumulated Amortization	(42,749)	(37,430)
Net	14,351	19,070
Other
Intangible Assets [Line Items]
Gross	12,145	11,045
Accumulated Amortization	(10,063)	(9,554)
Net	$ 2,082	$ 1,491

Balance Sheet Components (Intan

Balance Sheet Components (Intangibles, Other Information) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Balance Sheet Related Disclosures [Abstract]
Amortization of intangibles	$ 2.4	$ 2.7	$ 7.3	$ 10.4

Balance Sheet Components (Sch_6

Balance Sheet Components (Schedule of Estimated Amortization Expense Related to Intangibles) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
2018 (remaining three months)	$ 2,466
2,019	8,544
2,020	7,497
2,021	2,029
2,022	513
Thereafter	1,292
Net	$ 22,341	$ 24,988

Balance Sheet Components (Sch_7

Balance Sheet Components (Schedule of Other Non-Current Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Non-current deferred income taxes	$ 75,674		$ 49,468
Other	18,373		12,321
Total other non-current assets	$ 94,047	$ 66,133	$ 61,789

Balance Sheet Components (Sch_8

Balance Sheet Components (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Sep. 30, 2018		Oct. 01, 2017	Sep. 30, 2018		Oct. 01, 2017	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Sales and marketing		$ 116,901			$ 116,901			$ 96,153
Warranty obligation		18,526	[1]		18,526	[1]		75,824
Sales returns		78,014	[1]		78,014	[1]		0
Freight		8,108			8,108			10,567
Other		60,861			60,861			39,926
Total other accrued liabilities	$ 267,951	282,410			282,410			$ 222,470
Reclassified to sales returns upon adoption of ASC 606	$ 57,900	$ 0		$ 0	$ 57,860	[2]	$ 0
[1]	Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return.
[2]	Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return.

Derivative Financial Instrume_3

Derivative Financial Instruments (Narrative) (Details) - Foreign currency forward contracts $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)derivative_instrument
Derivatives Not Designated as Hedging Instruments
Derivative [Line Items]
Approximate number of derivatives per quarter | derivative_instrument	10
Average size of derivative contracts | $	$ 2
Cash Flow Hedges
Derivative [Line Items]
Approximate number of derivatives per quarter | derivative_instrument	10
Average size of derivative contracts | $	$ 7
Estimated term of reclassification from OCI to Income	12 months
Maximum number of days after hedge period allowed before de-designation	60 days
Minimum | Derivatives Not Designated as Hedging Instruments
Derivative [Line Items]
Term of derivative contracts	1 month
Maximum
Derivative [Line Items]
Term of derivative contracts	6 months
Maximum | Derivatives Not Designated as Hedging Instruments
Derivative [Line Items]
Term of derivative contracts	3 months
Maximum | Cash Flow Hedges
Derivative [Line Items]
Term of derivative contracts	6 months

Derivative Financial Instrume_4

Derivative Financial Instruments (Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Gross Amounts of recognized assets	$ 1,028	$ 1,799
Gross Amounts of recognized liabilities	209	8,192
Prepaid expenses and other current assets | Derivative assets not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Gross Amounts of recognized assets	995	1,314
Prepaid expenses and other current assets | Derivative assets designated as hedging instruments
Derivatives, Fair Value [Line Items]
Gross Amounts of recognized assets	33	485
Other accrued liabilities | Derivative assets not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Gross Amounts of recognized liabilities	189	7,128
Other accrued liabilities | Derivative assets designated as hedging instruments
Derivatives, Fair Value [Line Items]
Gross Amounts of recognized liabilities	$ 20	$ 1,064

Derivative Financial Instrume_5

Derivative Financial Instruments (Schedule of Offsetting of Derivative Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Offsetting of Derivative Assets [Line Items]
Gross Amounts of Recognized Assets	$ 1,028	$ 1,799
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets	1,028	1,799
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(209)	(1,799)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0	0
Net Amount	819	0
HSBC
Offsetting of Derivative Assets [Line Items]
Gross Amounts of Recognized Assets	272
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0
Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets	272
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(59)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0
Net Amount	213
Bank of America
Offsetting of Derivative Assets [Line Items]
Gross Amounts of Recognized Assets	62	1,664
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets	62	1,664
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(10)	(1,664)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0	0
Net Amount	52	0
Wells Fargo
Offsetting of Derivative Assets [Line Items]
Gross Amounts of Recognized Assets	694	135
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets	694	135
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(140)	(135)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0	0
Net Amount	$ 554	$ 0

Derivative Financial Instrume_6

Derivative Financial Instruments (Schedule of Offsetting of Derivative Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Offsetting of Derivative Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ 209	$ 8,192
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets	209	8,192
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(209)	(1,799)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0	0
Net Amount	0	6,393
HSBC
Offsetting of Derivative Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	59
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0
Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets	59
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(59)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0
Net Amount	0
Bank of America
Offsetting of Derivative Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	10	7,815
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets	10	7,815
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(10)	(1,664)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0	0
Net Amount	0	6,151
Wells Fargo
Offsetting of Derivative Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	140	377
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0	0
Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets	140	377
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Financial Instruments	(140)	(135)
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets: Cash Collateral Pledged	0	0
Net Amount	$ 0	$ 242

Derivative Financial Instrume_7

Derivative Financial Instruments (Schedule of Effects and Locations of Gains or Losses Recognized in Income) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Net revenue		$ 400,586	$ 355,483	$ 1,112,379	$ 1,009,863
Cost of revenue		276,394	252,388	774,510	717,900
Research and development		35,253	23,127	95,571	69,167
Sales and marketing		49,005	40,311	139,646	115,001
General and administrative		23,268	14,229	60,354	40,373
Amount Reclassified from AOCI | Foreign currency forward contracts | Designated as Hedging Instrument | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Net revenue	[1]	1,031	(4,401)	246	(3,374)
Cost of revenue	[1]	(7)	19	(8)	5
Research and development	[1]	2	84	88	10
Sales and marketing	[1]	(138)	629	(65)	380
General and administrative	[1]	$ (41)	$ 109	$ (50)	$ 67
[1]	Refer to Note 11, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.

Derivative Financial Instrume_8

Derivative Financial Instruments (Schedule of Company's Derivative Instruments on Other Comprehensive Income and the Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Net revenue		$ 400,586	$ 355,483	$ 1,112,379	$ 1,009,863
Cost of revenue		276,394	252,388	774,510	717,900
Research and development		35,253	23,127	95,571	69,167
Sales and marketing		49,005	40,311	139,646	115,001
General and administrative		23,268	14,229	60,354	40,373
Net income		9,150	20,794	9,510	51,370
Cash Flow Hedges | Designated as Hedging Instrument | Foreign currency forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) Recognized in OCI - Effective Portion		895	(3,538)	1,075	(10,590)
Amount Reclassified from AOCI | Cash Flow Hedges | Designated as Hedging Instrument | Foreign currency forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Net revenue	[1]	1,031	(4,401)	246	(3,374)
Cost of revenue	[1]	(7)	19	(8)	5
Research and development	[1]	2	84	88	10
Sales and marketing	[1]	(138)	629	(65)	380
General and administrative	[1]	(41)	109	(50)	67
Net income	[1]	$ 847	$ (3,560)	$ 211	$ (2,912)
[1]	Refer to Note 11, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives.

Derivative Financial Instrume_9

Derivative Financial Instruments (Schedule of Derivatives not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Other income (expense), net | Foreign currency forward contracts | Derivatives Not Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on cash flow hedge	$ 934	$ (1,925)	$ 3,963	$ (6,171)

Net Income Per Share (Schedule

Net Income Per Share (Schedule of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2018	Jul. 01, 2018	Apr. 01, 2018	Oct. 01, 2017	Jul. 02, 2017	Apr. 02, 2017	Sep. 30, 2018	Oct. 01, 2017
Numerator:
Net income	$ 9,150			$ 20,794			$ 9,510	$ 51,370
Net loss attributable to non-controlling interest	(799)			0			(799)	0
Net income attributable to NETGEAR, Inc.	$ 9,949	$ (5,230)	$ 5,590	$ 20,794	$ 14,582	$ 15,994	$ 10,309	$ 51,370
Denominator:
Weighted average common shares - basic (in shares)	31,802			31,704			31,634	32,335
Potentially dilutive common share equivalent (in shares)	1,172			689			1,192	934
Weighted average common shares - dilutive (in shares)	32,974			32,393			32,826	33,269
Basic net income per share attributable to NETGEAR, Inc. (in dollars per share)	$ 0.31			$ 0.66			$ 0.33	$ 1.59
Diluted net income per share attributable to NETGEAR, Inc. (in dollars per share)	$ 0.30			$ 0.64			$ 0.31	$ 1.54
Anti-dilutive employee stock-based awards, excluded (in shares)	450			975			874	431

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,780		$ 5,767	$ 9,541	$ 18,678
Effective tax rate	23.30%		21.70%	50.10%	26.70%
Provisional (benefit) amount related to one-time transition tax on mandatory deemed repatriation of foreign earnings	$ (4,000)			$ (4,000)		$ 21,700
Potential exposure for BEAT				800
Additional income tax expense		$ 48,300
Provisional amounts related to remeasurement of certain deferred tax assets and liabilities						$ 26,600
Possible reduction in liabilities for uncertain tax positions	$ 900			$ 900

Commitments and Contingencies_2

Commitments and Contingencies (Details)

Sep. 14, 2018patent

Jul. 18, 2018patent

Jan. 03, 2018decision

Dec. 21, 2017decision

Oct. 02, 2017

Jul. 14, 2017patent

Apr. 19, 2017patent

Sep. 26, 2016petition

Aug. 26, 2016petitiondefendant

Jul. 01, 2015patent

Mar. 06, 2015patent

Dec. 04, 2014USD ($)claim$ / products

Aug. 22, 2014patent

Jun. 13, 2013USD ($)$ / products

Sep. 14, 2010patent

Jan. 31, 2017petition

Sep. 30, 2013patent

Sep. 30, 2018USD ($)caseclaim

Dec. 31, 2019USD ($)

Dec. 31, 2017USD ($)

Loss Contingencies [Line Items]

Lease expiration date

Dec. 15, 2028

Property, plant, and equipment

$ 160,105,000

$ 123,241,000

Build-to-suit lease liability, non-current

20,600,000

Build-to-suit lease liability, current

$ 900,000

Number of days for non-cancellation of purchase obligations prior to expected shipment date

30 days

Non-cancelable purchase commitments with suppliers

$ 169,100,000

Liabilities recorded for director and officer indemnification agreements

0

Liabilities recorded for customers, distributors, and resellers indemnification agreements

$ 0

Period following change of company control executive officer termination entitlements

12 months

Liabilities for executive's employment agreements

$ 0

Number of existing cases and proceedings that the Company currently believes are liking to have a material adverse effect on its financial position | claim

0

The future length the Company currently considered regarding existing cases and proceedings that are likely to have a material adverse effect on it (in months)

12 months

Earliest Tax Year | Italy

Loss Contingencies [Line Items]

Year under examination

2,004

Latest Tax Year | Italy

Loss Contingencies [Line Items]

Year under examination

2,012

Ericsson v. NETGEAR

Loss Contingencies [Line Items]

Number of patents accused of infringing upon | patent

8

Damages assessed against defendants, per unit equivalent | $ / products

0.15

Damages assessed against defendants, per patent equivalent | $ / products

0.05

Foregone verdict amount

$ 3,600,000

Foregone ongoing royalty verdict amount, per unit | $ / products

0.15

Number of patents jury found infringed | patent

3

Number of patents jury found infringed for which PTAB invalidated all claims asserted against the Company | patent

3

Ericsson v. NETGEAR | Infringement of U.S. Patent Number 6,466,568

Loss Contingencies [Line Items]

Number of claims jury found infringed | claim

2

Ericsson v. NETGEAR | Infringement of U.S. Patent Number 6,772,215

Loss Contingencies [Line Items]

Number of claims jury found infringed | claim

2

Ericsson v. NETGEAR | D-Link

Loss Contingencies [Line Items]

Damages assessed against defendants

$ 435,000

Ericsson v. NETGEAR | NETGEAR

Loss Contingencies [Line Items]

Damages assessed against defendants

3,555,000

Ericsson v. NETGEAR | Acer Gateway

Loss Contingencies [Line Items]

Damages assessed against defendants

1,170,000

Ericsson v. NETGEAR | Dell

Loss Contingencies [Line Items]

Damages assessed against defendants

1,920,000

Ericsson v. NETGEAR | Toshiba

Loss Contingencies [Line Items]

Damages assessed against defendants

2,445,000

Ericsson v. NETGEAR | Belkin

Loss Contingencies [Line Items]

Damages assessed against defendants

$ 600,000

Via Vadis v. NETGEAR

Loss Contingencies [Line Items]

Number of patents accused of infringing upon | patent

3

Chrismar Systems vs. NETGEAR

Loss Contingencies [Line Items]

Number of patents accused of infringing upon | patent

4

Number of active cases the suing company has | case

40

Number of defendants | defendant

3

Number of Final Written Decisions | decision

2

4

Period post Final Written Decision to seek rehearing

30 days

Period post Final Written Decision to file appeal

63 days

Chrismar Systems vs. NETGEAR | Juniper

Loss Contingencies [Line Items]

Number of IPR petitions | petition

4

4

4

Vivato vs. NETGEAR

Loss Contingencies [Line Items]

Number of patents accused of infringing upon | patent

3

Duration of jury trial set by court

5 days

Hera Wireless vs. NETGEAR

Loss Contingencies [Line Items]

Number of patents accused of infringing upon | patent

6

3

3

Chief Executive Officer

Loss Contingencies [Line Items]

Period of health benefits continuation after termination without cause

12 months

Vesting period after termination without cause subject to accelerated vesting

12 months

Annual base salary and target annual bonus multiple for cash severance

200.00%

Period of health benefits continuation subsequent to change of company control

24 months

Other Key Executives

Loss Contingencies [Line Items]

Annual base salary and target annual bonus multiple for cash severance

100.00%

Period of health benefits continuation subsequent to change of company control

12 months

46 to 60 Days

Loss Contingencies [Line Items]

Percentage of cancelable orders

50.00%

31 to 45 Days

Loss Contingencies [Line Items]

Percentage of cancelable orders

25.00%

Minimum | 46 to 60 Days

Loss Contingencies [Line Items]

Required notice period prior to expected shipment date

46 days

Minimum | 31 to 45 Days

Loss Contingencies [Line Items]

Required notice period prior to expected shipment date

31 days

Maximum | 46 to 60 Days

Loss Contingencies [Line Items]

Required notice period prior to expected shipment date

60 days

Maximum | 31 to 45 Days

Loss Contingencies [Line Items]

Required notice period prior to expected shipment date

45 days

Construction in progress

Loss Contingencies [Line Items]

Property, plant, and equipment

[1]

$ 21,858,000

$ 0

Scenario, Forecast | Capital Lease Obligations | Arlo Corporate Headquarters Lease

Loss Contingencies [Line Items]

Finance lease, annual expense

$ 2,900,000

[1]

Arlo Technologies, Inc. entered into a build-to-suit lease arrangement in relation to its headquarters in San Jose, California. Refer to Note 10, Commitments and Contingencies, for details of this lease. The construction is expected to be completed in January 2019.

Commitments and Contingencies_3

Commitments and Contingencies (Schedule of Changes in Warranty Obligation) (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018		Oct. 01, 2017
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of the period	$ 75,824	$ 18,759	$ 60,451	$ 75,824		$ 58,520
Reclassified to sales returns upon adoption of ASC 606	$ (57,900)	0	0	(57,860)	[1]	0
Provision for warranty obligation made during the period		857	35,815	3,798		97,083
Settlements made during the period		(1,090)	(28,716)	(3,236)		(88,053)
Balance at end of period		$ 18,526	$ 67,550	$ 18,526		$ 67,550
[1]	Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return.

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Jul. 02, 2017	Apr. 02, 2017	Sep. 30, 2018	Oct. 01, 2017
Stockholders' Equity Note [Abstract]
Shares remaining authorized for repurchase (in shares)	1,800,000				1,800,000
Stock repurchased (in shares)					200,000	1,800,000
Cost of stock repurchased	$ 15,000	$ 29,999	$ 45,000	$ 11,631	$ 15,000	$ 86,600
Common stock repurchased to help administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving RSUs (in shares)					129,000	127,000
Cost of common stock repurchased to help administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving RSUs					$ 7,582	$ 6,017

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Changes in Accumulated Other Comprehensive Income by Component) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Estimated tax benefit (provision)
Beginning balance	$ 133	$ (261)
Other comprehensive income (loss) before reclassifications	(165)	2,038
Less: Amount reclassified from accumulated other comprehensive income	(44)	1,019
Net current period other comprehensive income (loss)	(121)	1,019
Ending balance	12	758
AOCI, after tax
Beginning balance	730,485
Other comprehensive income (loss) before reclassifications	982	(8,593)
Amount reclassified from accumulated other comprehensive income, Net of tax	167	(1,893)
Less: Amount reclassified from accumulated other comprehensive income	815	(6,700)
Ending balance	910,178
Unrealized gains (losses) on available-for-sale securities
AOCI, before tax
Beginning balance	(146)	(31)
Other comprehensive income (loss) before reclassifications	72	(41)
Less: Amount reclassified from accumulated other comprehensive income	0	0
Net current period other comprehensive income (loss)	72	(41)
Ending balance	(74)	(72)
Unrealized gains (losses) on derivatives
AOCI, before tax
Beginning balance	(838)	2,230
Other comprehensive income (loss) before reclassifications	1,075	(10,590)
Less: Amount reclassified from accumulated other comprehensive income	211	(2,912)
Net current period other comprehensive income (loss)	864	(7,678)
Ending balance	26	(5,448)
Accumulated Other Comprehensive Income (Loss)
AOCI, after tax
Beginning balance	(851)	1,938
Ending balance	$ (36)	$ (4,762)

Stockholders' Equity (Schedul_2

Stockholders' Equity (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Net revenue	$ 400,586	$ 355,483	$ 1,112,379	$ 1,009,863
Cost of revenue	276,394	252,388	774,510	717,900
Research and development	35,253	23,127	95,571	69,167
Sales and marketing	49,005	40,311	139,646	115,001
General and administrative	23,268	14,229	60,354	40,373
Income before income taxes	11,930	26,561	19,051	70,048
Tax impact			(44)	1,019
Net income	9,150	20,794	9,510	51,370
Amount Reclassified from AOCI | Gain (losses) on cash flow hedge
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	847	(3,560)	211	(2,912)
Tax impact	(178)	1,246	(44)	1,019
Net income	669	(2,314)	167	(1,893)
Amount Reclassified from AOCI | Gain (losses) on cash flow hedge | Foreign currency forward contracts
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Net revenue	1,031	(4,401)	246	(3,374)
Cost of revenue	(7)	19	(8)	5
Research and development	2	84	88	10
Sales and marketing	(138)	629	(65)	380
General and administrative	$ (41)	$ 109	$ (50)	$ 67

Employee Benefit Plans (Narrati

Employee Benefit Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2018	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation		$ 9,554	$ 5,583	$ 26,674	$ 16,412
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation		11,400		$ 11,400
Weighted-average period of recognition of stock based compensation				2 years 6 months
Options granted in the period (in shares)				378,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation		$ 77,300		$ 77,300
Weighted-average period of recognition of stock based compensation				2 years 8 months 12 days
Awards granted in the period (in shares)				933,000
Weighted-average grant date fair value (in dollars per share)				$ 68.27
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted, vesting term (in years)				4 years
Additional shares increase from plan amendment	1,700,000
Number of shares reserved for future grant (in shares)		1,800,000		1,800,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price at which employees could purchase stock semi-annually, percent of fair market value on purchase date				85.00%
General duration of each offering period				6 months
ESPP | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future grant (in shares)		700,000		700,000
Maximum percentage of compensation contributed by employees		10.00%		10.00%
ARLO Share Based Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation		$ 900
ARLO Share Based Award Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation		$ 19,200		$ 19,200
Weighted-average period of recognition of stock based compensation				3 years 7 months 6 days
Options granted in the period (in shares)		600,000
ARLO Share Based Award Plan | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation		$ 900		$ 900
Weighted-average period of recognition of stock based compensation				1 year 8 months 12 days
Awards granted in the period (in shares)		60,000
ARLO Share Based Award Plan | Performance Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted in the period (in shares)				2,800,000
Weighted-average grant date fair value (in dollars per share)				$ 16

Employee Benefit Plans (Schedul

Employee Benefit Plans (Schedule of Stock Option Activity) (Details) - Stock Options shares in Thousands	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of shares
Beginning balance (in shares) | shares	1,879
Granted (in shares) | shares	378
Exercised (in shares) | shares	(226)
Expired (in shares) | shares	(6)
Ending balance (in shares) | shares	2,025
Weighted Average Exercise Price Per Share
Beginning balance (in dollars per share) | $ / shares	$ 34.08
Granted (in dollars per share) | $ / shares	69.70
Exercised (in dollars per share) | $ / shares	23.02
Expired (in dollars per share) | $ / shares	21.45
Ending balance (in dollars per share) | $ / shares	$ 42

Employee Benefit Plans (Sched_2

Employee Benefit Plans (Schedule of RSU Activity) (Details) - RSUs shares in Thousands	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of shares
Beginning balance (in shares) | shares	1,130
Granted (in shares) | shares	933
Vested (in shares) | shares	(410)
Cancelled (in shares) | shares	(53)
Ending balance (in shares) | shares	1,600
Weighted Average Grant Date Fair Value Per Share
Beginning Balance (in dollars per share) | $ / shares	$ 43.22
Granted (in dollars per share) | $ / shares	68.27
Vested (in dollars per share) | $ / shares	40.94
Cancelled (in dollars per share) | $ / shares	54.78
Ending Balance (in dollars per share) | $ / shares	$ 58.04

Employee Benefit Plans (Sched_3

Employee Benefit Plans (Schedule of Valuation and Expense Information) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
2016 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	4 years 5 months 6 days		4 years 5 months	4 years 5 months
Risk-free interest rate	2.79%		2.36%	1.65%
Expected volatility	33.50%		31.10%	31.60%
Dividend yield	0.00%		0.00%	0.00%
2016 Plan | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	6 months	6 months	6 months	6 months
Risk-free interest rate	2.22%	1.12%	2.00%	0.93%
Expected volatility	38.80%	31.30%	37.90%	29.70%
Dividend yield	0.00%	0.00%	0.00%	0.00%
ARLO Share Based Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	6 years 3 months 19 days
Risk-free interest rate	2.86%
Expected volatility	40.00%
Dividend yield	0.00%

Employee Benefit Plans (Sched_4

Employee Benefit Plans (Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, Restricted Stock Awards, and the Employee Stock Purchase Plan) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 9,554	$ 5,583	$ 26,674	$ 16,412
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	853	499	2,571	1,477
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,907	1,056	5,431	3,748
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	2,728	1,654	7,847	4,339
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 4,066	$ 2,374	$ 10,825	$ 6,848

Segment Information (Narrative)

Segment Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 2018regionsegment
Segment Reporting [Abstract]
Number of operating segments	3
Number of reportable segments	3
Number of geographic regions in which the Company conducts business | region	3

Segment Information (Schedule o

Segment Information (Schedule of Reportable Segments and Reconciliation of Segment Contribution Income to Income Before Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		10 Months Ended
	Sep. 30, 2018		Oct. 01, 2017		Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018
Segment Reporting Information [Line Items]
Total net revenue	$ 400,586		$ 355,483		$ 1,112,379	$ 1,009,863
Total segment contribution income	60,978		52,359		158,086	147,944
Corporate and unallocated costs	(32,454)		(18,740)		(82,003)	(53,974)
Amortization of intangibles	(2,304)	[1]	(2,608)	[1]	(7,111)	(10,136)
Stock-based compensation expense	(9,554)		(5,583)		(26,674)	(16,412)
Separation expense	(7,054)		0		(25,822)	0	$ (27,300)
Restructuring and other charges	(1)		(19)		(1,368)	(78)
Litigation reserves, net	0		(15)		(5)	(68)
Interest income	1,490		501		3,310	1,388
Other income (expense), net	829		666		638	1,384
Income before income taxes	11,930		26,561		19,051	70,048
Arlo
Segment Reporting Information [Line Items]
Total net revenue	131,174		110,460		332,197	249,904
Total segment contribution income	$ 8,495		$ 15,230		$ 12,813	$ 18,723
Segment contribution margin	6.50%		13.80%		3.90%	7.50%
Connected Home
Segment Reporting Information [Line Items]
Total net revenue	$ 194,684		$ 183,099		$ 563,628	$ 563,365
Total segment contribution income	$ 31,283		$ 24,546		$ 87,143	$ 81,382
Segment contribution margin	16.10%		13.40%		15.50%	14.40%
SMB
Segment Reporting Information [Line Items]
Total net revenue	$ 74,728		$ 61,924		$ 216,554	$ 196,594
Total segment contribution income	$ 21,200		$ 12,583		$ 58,130	$ 47,839
Segment contribution margin	28.40%		20.30%		26.80%	24.30%
[1]	Amount excludes amortization expense related to patents within purchased intangibles in cost of revenue.

Segment Information (Schedule_2

Segment Information (Schedule of Net Revenue by Geographic Areas) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Oct. 01, 2017	Sep. 30, 2018	Oct. 01, 2017
Segment Reporting Information [Line Items]
Total net revenue	$ 400,586	$ 355,483	$ 1,112,379	$ 1,009,863
United States (U.S.)
Segment Reporting Information [Line Items]
Total net revenue	280,639	235,584	762,619	663,096
Americas (excluding U.S.)
Segment Reporting Information [Line Items]
Total net revenue	8,145	8,804	19,611	19,870
EMEA
Segment Reporting Information [Line Items]
Total net revenue	64,917	62,161	200,227	175,810
Asia Pacific
Segment Reporting Information [Line Items]
Total net revenue	$ 46,885	$ 48,934	$ 129,922	$ 151,087

Segment Information (Schedule_3

Segment Information (Schedule of Long-Lived Asset by Geographic Areas) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 56,647	$ 20,660
United States (U.S.)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	41,799	9,216
Americas (excluding U.S.)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	4,189	1,807
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	386	141
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	7,021	6,803
APAC (excluding China)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 3,252	$ 2,693

Fair Value Measurements (Summar

Fair Value Measurements (Summary of Valuation of Company's Financial Instruments by Various Levels) (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017	Oct. 01, 2017
Assets:
Cash equivalents: money-market funds			$ 12,606
Foreign currency forward contracts	[1]		1,799
Total assets measured at fair value			141,331
Liabilities:
Foreign currency forward contracts	[2]		8,192
Contingent consideration		$ 5,953		$ 0
Total liabilities measured at fair value			8,192
Quoted market prices in active markets (Level 1)
Assets:
Cash equivalents: money-market funds			12,606
Foreign currency forward contracts	[1]		0
Total assets measured at fair value			139,532
Liabilities:
Foreign currency forward contracts	[2]		0
Total liabilities measured at fair value			0
Significant other observable inputs (Level 2)
Assets:
Cash equivalents: money-market funds			0
Foreign currency forward contracts	[1]		1,799
Total assets measured at fair value			1,799
Liabilities:
Foreign currency forward contracts	[2]		8,192
Total liabilities measured at fair value			8,192
Significant unobservable inputs (Level 3)
Assets:
Cash equivalents: money-market funds			0
Foreign currency forward contracts	[1]		0
Total assets measured at fair value			0
Liabilities:
Foreign currency forward contracts	[2]		0
Total liabilities measured at fair value			0
U.S. treasuries
Assets:
Investments, fair value	[3]		124,670
U.S. treasuries | Quoted market prices in active markets (Level 1)
Assets:
Investments, fair value	[3]		124,670
U.S. treasuries | Significant other observable inputs (Level 2)
Assets:
Investments, fair value	[3]		0
U.S. treasuries | Significant unobservable inputs (Level 3)
Assets:
Investments, fair value	[3]		0
Certificates of deposit
Assets:
Investments, fair value	[3]		162
Certificates of deposit | Quoted market prices in active markets (Level 1)
Assets:
Investments, fair value	[3]		162
Certificates of deposit | Significant other observable inputs (Level 2)
Assets:
Investments, fair value	[3]		0
Certificates of deposit | Significant unobservable inputs (Level 3)
Assets:
Investments, fair value	[3]		0
Mutual funds
Assets:
Investments, fair value	[3]		2,094
Mutual funds | Quoted market prices in active markets (Level 1)
Assets:
Investments, fair value	[3]		2,094
Mutual funds | Significant other observable inputs (Level 2)
Assets:
Investments, fair value	[3]		0
Mutual funds | Significant unobservable inputs (Level 3)
Assets:
Investments, fair value	[3]		$ 0
Fair Value, Measurements, Recurring
Assets:
Cash equivalents: money-market funds		37,228
Foreign currency forward contracts	[1]	1,028
Total assets measured at fair value		174,429
Liabilities:
Foreign currency forward contracts	[2]	209
Contingent consideration	[4]	5,953
Total liabilities measured at fair value		6,162
Fair Value, Measurements, Recurring | Quoted market prices in active markets (Level 1)
Assets:
Cash equivalents: money-market funds		37,228
Foreign currency forward contracts	[1]	0
Total assets measured at fair value		173,401
Liabilities:
Foreign currency forward contracts	[2]	0
Contingent consideration	[4]	0
Total liabilities measured at fair value		0
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2)
Assets:
Cash equivalents: money-market funds		0
Foreign currency forward contracts	[1]	1,028
Total assets measured at fair value		1,028
Liabilities:
Foreign currency forward contracts	[2]	209
Contingent consideration	[4]	0
Total liabilities measured at fair value		209
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3)
Assets:
Cash equivalents: money-market funds		0
Foreign currency forward contracts	[1]	0
Total assets measured at fair value		0
Liabilities:
Foreign currency forward contracts	[2]	0
Contingent consideration	[4]	5,953
Total liabilities measured at fair value		5,953
Fair Value, Measurements, Recurring | U.S. treasuries
Assets:
Investments, fair value	[3]	133,164
Fair Value, Measurements, Recurring | U.S. treasuries | Quoted market prices in active markets (Level 1)
Assets:
Investments, fair value	[3]	133,164
Fair Value, Measurements, Recurring | U.S. treasuries | Significant other observable inputs (Level 2)
Assets:
Investments, fair value	[3]	0
Fair Value, Measurements, Recurring | U.S. treasuries | Significant unobservable inputs (Level 3)
Assets:
Investments, fair value	[3]	0
Fair Value, Measurements, Recurring | Certificates of deposit
Assets:
Investments, fair value	[3]	152
Fair Value, Measurements, Recurring | Certificates of deposit | Quoted market prices in active markets (Level 1)
Assets:
Investments, fair value	[3]	152
Fair Value, Measurements, Recurring | Certificates of deposit | Significant other observable inputs (Level 2)
Assets:
Investments, fair value	[3]	0
Fair Value, Measurements, Recurring | Certificates of deposit | Significant unobservable inputs (Level 3)
Assets:
Investments, fair value	[3]	0
Fair Value, Measurements, Recurring | Mutual funds
Assets:
Investments, fair value	[3]	2,857
Fair Value, Measurements, Recurring | Mutual funds | Quoted market prices in active markets (Level 1)
Assets:
Investments, fair value	[3]	2,857
Fair Value, Measurements, Recurring | Mutual funds | Significant other observable inputs (Level 2)
Assets:
Investments, fair value	[3]	0
Fair Value, Measurements, Recurring | Mutual funds | Significant unobservable inputs (Level 3)
Assets:
Investments, fair value	[3]	$ 0
[1]	Included in Prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheets.
[2]	Included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets.
[3]	Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets.
[4]	Included in Other non-current accrued liabilities on the Company’s unaudited condensed consolidated balance sheets. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with the acquisition of Meural that is contingent upon the achievement of certain technical and service revenue milestones milestones. Refer to Note 5, Business Acquisition, regarding detailed disclosures on the determination of fair value of the contingent consideration.

Restructuring and Other Charg_3

Restructuring and Other Charges (Narrative) (Details)	9 Months Ended
	Sep. 30, 2018
Lease contract termination and other charges
Restructuring Cost and Reserve [Line Items]
Date amounts attributable to lease contract termination charges will be paid until	Jan. 31, 2022

Restructuring and Other Charg_4

Restructuring and Other Charges (Schedule of Restructuring and Other Charges) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Restructuring Reserve [Roll Forward]
Accrued Restructuring and Other Charges, beginning balance	$ 1,135
Additions	1,381
Cash Payments	(2,056)
Adjustments	(13)
Accrued Restructuring and Other Charges, ending balance	447
Employee termination charges
Restructuring Reserve [Roll Forward]
Accrued Restructuring and Other Charges, beginning balance	6
Additions	917
Cash Payments	(702)
Adjustments	(10)
Accrued Restructuring and Other Charges, ending balance	211
Lease contract termination and other charges
Restructuring Reserve [Roll Forward]
Accrued Restructuring and Other Charges, beginning balance	1,129
Additions	464
Cash Payments	(1,354)
Adjustments	(3)
Accrued Restructuring and Other Charges, ending balance	$ 236