Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 29, 2015 | Apr. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NETGEAR, INC | |
Entity Central Index Key | 1122904 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 29-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 34,664,061 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $146,401 | $141,234 |
Short-term investments | 101,004 | 115,895 |
Accounts receivable, net | 254,745 | 275,689 |
Inventories | 200,948 | 222,883 |
Deferred income taxes | 28,703 | 29,039 |
Prepaid expenses and other current assets | 38,080 | 38,225 |
Total current assets | 769,881 | 822,965 |
Property and equipment, net | 27,849 | 29,694 |
Intangibles, net | 61,755 | 66,230 |
Goodwill | 81,721 | 81,721 |
Total other non-current assets | 48,653 | 48,077 |
Total assets | 989,859 | 1,048,687 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 66,654 | 106,357 |
Accrued employee compensation | 19,908 | 21,588 |
Other accrued liabilities | 122,168 | 143,742 |
Deferred revenue | 23,746 | 30,023 |
Income taxes payable | 4,892 | 2,406 |
Total current liabilities | 237,368 | 304,116 |
Non-current income taxes payable | 14,892 | 15,252 |
Other non-current liabilities | 7,784 | 7,754 |
Total liabilities | 260,044 | 327,122 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Common stock | 35 | 35 |
Additional paid-in capital | 462,973 | 454,144 |
Accumulated other comprehensive income | 20 | 38 |
Retained earnings | 266,787 | 267,348 |
Total stockholders’ equity | 729,815 | 721,565 |
Total liabilities and stockholders’ equity | $989,859 | $1,048,687 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Net revenue | $309,157 | $349,391 |
Cost of revenue | 220,877 | 251,466 |
Gross profit | 88,280 | 97,925 |
Operating expenses: | ||
Research and development | 20,452 | 22,181 |
Sales and marketing | 37,602 | 39,911 |
General and administrative | 11,023 | 11,375 |
Restructuring and other charges | 4,394 | 842 |
Litigation reserves, net | -2,690 | 117 |
Total operating expenses | 70,781 | 74,426 |
Income from operations | 17,499 | 23,499 |
Interest income | 52 | 57 |
Other income (expense), net | 475 | -108 |
Income before income taxes | 18,026 | 23,448 |
Provision for income taxes | 10,015 | 9,037 |
Net income | $8,011 | $14,411 |
Net income per share: | ||
Basic (in dollars per share) | $0.23 | $0.39 |
Diluted (in dollars per share) | $0.23 | $0.39 |
Weighted average shares used to compute net income per share: | ||
Basic | 34,678 | 36,630 |
Diluted | 35,285 | 37,305 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Net income | $8,011 | $14,411 |
Other comprehensive loss, before tax: | ||
Unrealized loss on derivative instruments | -24 | -205 |
Unrealized gain on available-for-sale securities | 10 | 7 |
Other comprehensive loss, before tax | -14 | -198 |
Tax expense related to items of other comprehensive income | -4 | -3 |
Other comprehensive loss, net of tax | -18 | -201 |
Comprehensive income | $7,993 | $14,210 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Cash flows from operating activities: | ||
Net income | $8,011 | $14,411 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 9,215 | 8,743 |
Purchase premium amortization/discount accretion on investments, net | -30 | 93 |
Non-cash stock-based compensation | 4,348 | 5,130 |
Income tax impact associated with stock option exercises | -262 | -314 |
Excess tax benefit from stock-based compensation | -88 | -153 |
Deferred income taxes | -386 | -671 |
Changes in assets and liabilities: | ||
Accounts receivable | 20,945 | -24,854 |
Inventories | 21,934 | 22,826 |
Prepaid expenses and other assets | 120 | -7,179 |
Accounts payable | -38,939 | -18,245 |
Accrued employee compensation | -1,680 | 1,983 |
Other accrued liabilities | -19,860 | -2,422 |
Deferred revenue | -5,819 | 5,637 |
Income taxes payable | 2,126 | 569 |
Net cash provided by (used in) operating activities | -365 | 5,554 |
Cash flows from investing activities: | ||
Purchases of short-term investments | -24,961 | -59,958 |
Proceeds from sales and maturities of short-term investments | 40,000 | 54,500 |
Purchase of property and equipment | -5,633 | -3,085 |
Net cash provided by (used in) investing activities | 9,406 | -8,543 |
Cash flows from financing activities: | ||
Purchase and retirement of common stock | -8,572 | -15,908 |
Proceeds from exercise of stock options | 3,108 | 4,063 |
Proceeds from issuance of common stock under employee stock purchase plan | 1,502 | 1,328 |
Excess tax benefit from stock-based compensation | 88 | 153 |
Net cash used in financing activities | -3,874 | -10,364 |
Net increase (decrease) in cash and cash equivalents | 5,167 | -13,353 |
Cash and cash equivalents, at beginning of period | 141,234 | 143,009 |
Cash and cash equivalents, at end of period | $146,401 | $129,656 |
The_Company_And_Basis_of_Prese
The Company And Basis of Presentation | 3 Months Ended |
Mar. 29, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company And Basis of Presentation | The Company and Basis of Presentation |
NETGEAR, Inc. (“NETGEAR” or the “Company”) was incorporated in Delaware in January 1996. The Company is a global networking company that delivers innovative products to consumers, businesses and service providers. The Company's products are built on a variety of proven technologies such as wireless, Ethernet and powerline, with a focus on reliability and ease-of-use. The product line consists of wired and wireless devices that enable networking, broadband access and network connectivity. These products are available in multiple configurations to address the needs of the end-users in each geographic region in which the Company's products are sold. | |
The accompanying unaudited condensed consolidated financial statements include the accounts of NETGEAR, Inc. and its wholly owned subsidiaries. They have been prepared in accordance with established guidelines for interim financial reporting and with the instructions of Form 10-Q and Article 10 of Regulation S-X. All significant intercompany balances and transactions have been eliminated in consolidation. The balance sheet dated December 31, 2014 has been derived from audited financial statements at such date. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes typically found in the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments considered necessary (consisting only of normal recurring adjustments) to fairly state the Company’s financial position, results of operations, comprehensive income and cash flows for the periods indicated. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | |
The Company’s fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its interim results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates and operating results for the three months ended March 29, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any future period. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s significant accounting policies have not materially changed during the three months ended March 29, 2015. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customer" (Topic 606). The guidance in this update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. An entity should apply the amendments in the update either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. ASU 2014-09 is effective for the Company beginning in the first quarter fiscal 2017. Early adoption is not permitted. The Company is in the process of evaluating the available transition methods and the impact of this standard on its financial position, results of operations or cash flows. |
Balance_Sheet_Components
Balance Sheet Components | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Balance Sheet Components | Balance Sheet Components | |||||||||||||||||||||||||||||||
Available-for-sale short-term investments (in thousands) | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | |||||||||||||||||||||||||
U.S. treasuries | $ | 99,944 | $ | 8 | $ | (7 | ) | $ | 99,945 | $ | 114,944 | $ | 6 | $ | (15 | ) | $ | 114,935 | ||||||||||||||
Certificates of deposits | 150 | — | — | 150 | 158 | — | — | 158 | ||||||||||||||||||||||||
Total | $ | 100,094 | $ | 8 | $ | (7 | ) | $ | 100,095 | $ | 115,102 | $ | 6 | $ | (15 | ) | $ | 115,093 | ||||||||||||||
The Company’s short-term investments are primarily comprised of marketable securities that are classified as available-for-sale and consist of government securities with an original maturity or remaining maturity at the time of purchase of greater than three months and no more than 12 months. Accordingly, none of the available-for-sale securities have unrealized losses greater than 12 months. | ||||||||||||||||||||||||||||||||
Accounts receivable, net (in thousands) | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Gross accounts receivable | $ | 275,062 | $ | 296,239 | ||||||||||||||||||||||||||||
Allowance for doubtful accounts | (1,255 | ) | (1,255 | ) | ||||||||||||||||||||||||||||
Allowance for sales returns | (16,317 | ) | (17,489 | ) | ||||||||||||||||||||||||||||
Allowance for price protection | (2,745 | ) | (1,806 | ) | ||||||||||||||||||||||||||||
Total allowances | (20,317 | ) | (20,550 | ) | ||||||||||||||||||||||||||||
Total accounts receivable, net | $ | 254,745 | $ | 275,689 | ||||||||||||||||||||||||||||
Inventories (in thousands) | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Raw materials | $ | 3,402 | $ | 3,625 | ||||||||||||||||||||||||||||
Work in process | 1 | 8 | ||||||||||||||||||||||||||||||
Finished goods | 197,545 | 219,250 | ||||||||||||||||||||||||||||||
Total inventories | $ | 200,948 | $ | 222,883 | ||||||||||||||||||||||||||||
The Company records provisions for excess and obsolete inventory based on forecasts of future demand. While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts are greater than actual demand. | ||||||||||||||||||||||||||||||||
Property and equipment, net (in thousands) | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Computer equipment | $ | 9,984 | $ | 9,779 | ||||||||||||||||||||||||||||
Furniture, fixtures and leasehold improvements | 19,772 | 19,379 | ||||||||||||||||||||||||||||||
Software | 29,395 | 29,294 | ||||||||||||||||||||||||||||||
Machinery and equipment | 62,097 | 60,135 | ||||||||||||||||||||||||||||||
Total property and equipment, gross | 121,248 | 118,587 | ||||||||||||||||||||||||||||||
Accumulated depreciation and amortization | (93,399 | ) | (88,893 | ) | ||||||||||||||||||||||||||||
Total property and equipment, net | $ | 27,849 | $ | 29,694 | ||||||||||||||||||||||||||||
Depreciation and amortization expense pertaining to property and equipment was $4.8 million and $4.3 million for the three months ended March 29, 2015 and March 30, 2014, respectively. | ||||||||||||||||||||||||||||||||
Intangibles, net (in thousands) | ||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
March 29, 2015 | ||||||||||||||||||||||||||||||||
Technology | $ | 61,099 | $ | (41,781 | ) | $ | 19,318 | |||||||||||||||||||||||||
Customer contracts and relationships | 56,500 | (17,976 | ) | 38,524 | ||||||||||||||||||||||||||||
Other | 10,545 | (6,632 | ) | 3,913 | ||||||||||||||||||||||||||||
Total intangibles, net | $ | 128,144 | $ | (66,389 | ) | $ | 61,755 | |||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Technology | $ | 61,099 | $ | (39,341 | ) | $ | 21,758 | |||||||||||||||||||||||||
Customer contracts and relationships | 56,500 | (16,205 | ) | 40,295 | ||||||||||||||||||||||||||||
Other | 10,545 | (6,368 | ) | 4,177 | ||||||||||||||||||||||||||||
Total intangibles, net | $ | 128,144 | $ | (61,914 | ) | $ | 66,230 | |||||||||||||||||||||||||
Amortization of intangibles was $4.5 million for the three months ended March 29, 2015 and March 30, 2014, respectively. | ||||||||||||||||||||||||||||||||
Estimated amortization expense related to intangibles for each of the next five years and thereafter is as follows (in thousands): | ||||||||||||||||||||||||||||||||
Year Ending December 31 | Amount | |||||||||||||||||||||||||||||||
2015 (remaining nine months) | $ | 12,808 | ||||||||||||||||||||||||||||||
2016 | 16,921 | |||||||||||||||||||||||||||||||
2017 | 11,386 | |||||||||||||||||||||||||||||||
2018 | 7,871 | |||||||||||||||||||||||||||||||
2019 | 6,028 | |||||||||||||||||||||||||||||||
Thereafter | 6,741 | |||||||||||||||||||||||||||||||
Total estimated amortization expense | $ | 61,755 | ||||||||||||||||||||||||||||||
Other non-current assets (in thousands) | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | 31-Dec-14 | |||||||||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
Non-current deferred income taxes | $ | 39,418 | $ | 38,696 | ||||||||||||||||||||||||||||
Cost method investment | 1,322 | 1,322 | ||||||||||||||||||||||||||||||
Other | 7,913 | 8,059 | ||||||||||||||||||||||||||||||
Total other non-current assets | $ | 48,653 | $ | 48,077 | ||||||||||||||||||||||||||||
Other accrued liabilities (in thousands) | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Sales and marketing programs | $ | 45,203 | $ | 54,582 | ||||||||||||||||||||||||||||
Warranty obligation | 42,877 | 44,888 | ||||||||||||||||||||||||||||||
Freight | 5,788 | 6,827 | ||||||||||||||||||||||||||||||
Other | 28,300 | 37,445 | ||||||||||||||||||||||||||||||
Total other accrued liabilities | $ | 122,168 | $ | 143,742 | ||||||||||||||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||||||||||||
The Company’s subsidiaries have had, and will continue to have material future cash flows, including revenue and expenses, which are denominated in currencies other than the Company’s functional currency. The Company and all its subsidiaries designate the U.S. dollar as the functional currency. Changes in exchange rates between the Company’s functional currency and other currencies in which the Company transacts business will cause fluctuations in cash flow expectations and cash flow realized or settled. Accordingly, the Company uses derivatives to mitigate its business exposure to foreign exchange risk. The Company enters into foreign currency forward contracts in Australian dollars, British pounds, Euros, and Japanese yen to manage the exposures to foreign exchange risk related to expected future cash flows on certain forecasted revenue, costs of revenue, operating expenses and existing assets and liabilities. The Company does not enter into derivatives transactions for trading or speculative purposes. | |||||||||||||||||||||||||
The Company’s foreign currency forward contracts do not contain any credit-risk-related contingent features. The Company is exposed to credit losses in the event of nonperformance by the counter-parties of its forward contracts. The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one counter-party. In addition, the derivative contracts typically mature in less than six months and the Company continuously evaluates the credit standing of its counter-party financial institutions. The counter-parties to these arrangements are large, highly rated financial institutions and the Company does not consider non-performance a material risk. | |||||||||||||||||||||||||
The Company may choose not to hedge certain foreign exchange exposures for a variety of reasons, including, but not limited to, materiality, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange rates. The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments in accordance with the authoritative guidance for derivatives and hedging. The Company records all derivatives on the balance sheet at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income ("OCI") until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments and the ineffective portions of its designated hedges are adjusted to fair value through earnings in other income, net in the unaudited condensed consolidated statement of operations. | |||||||||||||||||||||||||
The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of March 29, 2015 and December 31, 2014 are summarized as follows (in thousands): | |||||||||||||||||||||||||
Derivative Assets | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | |||||||||||||||||||||
Location | 29-Mar-15 | Location | December 31, 2014 | ||||||||||||||||||||||
Derivative assets not designated as hedging instruments | Prepaid expenses and other current assets | $ | 2,724 | Prepaid expenses and other current assets | $ | 2,416 | |||||||||||||||||||
Derivative assets designated as hedging | Prepaid expenses and other current assets | 10 | Prepaid expenses and other current assets | — | |||||||||||||||||||||
instruments | |||||||||||||||||||||||||
Total | $ | 2,734 | $ | 2,416 | |||||||||||||||||||||
Derivative Liabilities | Balance Sheet | Fair Value at March 29, 2015 | Balance Sheet | Fair Value at | |||||||||||||||||||||
Location | Location | December 31, 2014 | |||||||||||||||||||||||
Derivative liabilities not designated as hedging instruments | Other accrued liabilities | $ | 389 | Other accrued liabilities | $ | 409 | |||||||||||||||||||
Derivative liabilities designated as hedging instruments | Other accrued liabilities | — | Other accrued liabilities | 38 | |||||||||||||||||||||
Total | $ | 389 | $ | 447 | |||||||||||||||||||||
For details of the Company’s fair value measurements, see Note 11, Fair Value Measurements. | |||||||||||||||||||||||||
Offsetting Derivative Assets and Liabilities | |||||||||||||||||||||||||
The Company has entered into master netting arrangements which allow net settlements under certain conditions. Although netting is permitted, it is currently the Company's policy and practice to record all derivative assets and liabilities on a gross basis in the unaudited condensed consolidated balance sheets. | |||||||||||||||||||||||||
The following tables set forth the offsetting of derivative assets as of March 29, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||||||||||
As of March 29, 2015 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 1,188 | $ | — | $ | 1,188 | $ | (161 | ) | $ | — | $ | 1,027 | ||||||||||||
J.P. Morgan Chase | 227 | — | 227 | (1 | ) | — | 226 | ||||||||||||||||||
Wells Fargo | 1,319 | — | 1,319 | (227 | ) | — | 1,092 | ||||||||||||||||||
Total | $ | 2,734 | $ | — | $ | 2,734 | $ | (389 | ) | $ | — | $ | 2,345 | ||||||||||||
As of December 31, 2014 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 319 | $ | — | $ | 319 | $ | (16 | ) | $ | — | $ | 303 | ||||||||||||
Wells Fargo | 2,097 | — | 2,097 | (431 | ) | — | 1,666 | ||||||||||||||||||
Total | $ | 2,416 | $ | — | $ | 2,416 | $ | (447 | ) | $ | — | $ | 1,969 | ||||||||||||
The following tables set forth the offsetting of derivative liabilities as of March 29, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||||||||||
As of March 29, 2015 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 161 | $ | — | $ | 161 | $ | (161 | ) | $ | — | $ | — | ||||||||||||
JP Morgan Chase | 1 | — | 1 | (1 | ) | — | — | ||||||||||||||||||
Wells Fargo | 227 | — | 227 | (227 | ) | — | — | ||||||||||||||||||
Total | $ | 389 | $ | — | $ | 389 | $ | (389 | ) | $ | — | $ | — | ||||||||||||
As of December 31, 2014 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 16 | $ | — | $ | 16 | $ | (16 | ) | $ | — | $ | — | ||||||||||||
Wells Fargo | 431 | — | 431 | (431 | ) | — | — | ||||||||||||||||||
Total | $ | 447 | $ | — | $ | 447 | $ | (447 | ) | $ | — | $ | — | ||||||||||||
Cash flow hedges | |||||||||||||||||||||||||
To help manage the exposure of operating margins to fluctuations in foreign currency exchange rates, the Company hedges a portion of its anticipated foreign currency revenue, costs of revenue and certain operating expenses. These hedges are designated at the inception of the hedge relationship as cash flow hedges under the authoritative guidance for derivatives and hedging. Effectiveness is tested at least quarterly both prospectively and retrospectively using regression analysis to ensure that the hedge relationship has been effective and is likely to remain effective in the future. The Company typically hedges portions of its anticipated foreign currency exposure for three to five months. The Company enters into about five forward contracts per quarter with an average size of approximately $7.0 million USD equivalent related to its cash flow hedging program. | |||||||||||||||||||||||||
The Company expects to reclassify to earnings all of the amounts recorded in OCI associated with its cash flow hedges over the next twelve months. OCI associated with cash flow hedges of foreign currency revenue is recognized as a component of net revenue in the same period as the related revenue is recognized. OCI associated with cash flow hedges of foreign currency costs of revenue and operating expenses are recognized as a component of cost of revenue and operating expense in the same period as the related costs of revenue and operating expenses are recognized. | |||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur within the designated hedge period or if not recognized within 60 days following the end of the hedge period. Deferred gains and losses in OCI with such derivative instruments are reclassified immediately into earnings through other income and expense. Any subsequent changes in fair value of such derivative instruments also are reflected in current earnings unless they are re-designated as hedges of other transactions. The Company did not recognize any material net gains or losses related to the loss of hedge designation as there were no discontinued cash flow hedges during the three months ended March 29, 2015 and March 30, 2014. | |||||||||||||||||||||||||
The effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three months ended March 29, 2015 and March 30, 2014 are summarized as follows (in thousands): | |||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Three Months Ended March 29, 2015 | ||||||||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) | Location of | Amount of Gain (Loss) Recognized in | |||||||||||||||||||||
Recognized in | Gain (Loss) | Reclassified | Gain (Loss) | Income and | |||||||||||||||||||||
OCI - | Reclassified from OCI | from | Recognized in | Excluded from | |||||||||||||||||||||
Effective | into Income - Effective | OCI into | Income and | Effectiveness Testing | |||||||||||||||||||||
Portion (a) | Portion | Income - | Excluded from | ||||||||||||||||||||||
Effective | Effectiveness Testing | ||||||||||||||||||||||||
Portion (a) | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Foreign currency forward contracts | $ | (195 | ) | Net revenue | $ | (147 | ) | Other income, net | $ | (19 | ) | ||||||||||||||
Foreign currency forward contracts | — | Cost of revenue | (1 | ) | Other income, net | — | |||||||||||||||||||
Foreign currency forward contracts | — | Operating expenses | (23 | ) | Other income, net | — | |||||||||||||||||||
Total | $ | (195 | ) | $ | (171 | ) | $ | (19 | ) | ||||||||||||||||
Derivatives Designated as Hedging Instruments | Three Months Ended March 30, 2014 | ||||||||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) | Location of | Amount of Gain (Loss) Recognized in | |||||||||||||||||||||
Recognized in | Gain (Loss) | Reclassified | Gain (Loss) | Income and | |||||||||||||||||||||
OCI - | Reclassified from OCI | from | Recognized in | Excluded from | |||||||||||||||||||||
Effective | into Income - Effective | OCI into | Income and | Effectiveness Testing | |||||||||||||||||||||
Portion (a) | Portion | Income - | Excluded from | ||||||||||||||||||||||
Effective | Effectiveness Testing | ||||||||||||||||||||||||
Portion (a) | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Foreign currency forward contracts | $ | (564 | ) | Net revenue | $ | (425 | ) | Other income, net | $ | (27 | ) | ||||||||||||||
Foreign currency forward contracts | — | Cost of revenue | 2 | Other income, net | — | ||||||||||||||||||||
Foreign currency forward contracts | — | Operating expenses | 64 | Other income, net | — | ||||||||||||||||||||
Total | $ | (564 | ) | $ | (359 | ) | $ | (27 | ) | ||||||||||||||||
(a) | Refer to Note 8, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives. | ||||||||||||||||||||||||
Non-designated hedges | |||||||||||||||||||||||||
The Company enters into non-designated hedges under the authoritative guidance for derivatives and hedging to manage the exposure of non-functional currency monetary assets and liabilities held on its financial statements to fluctuations in foreign currency exchange rates, as well as to reduce volatility in other income and expense. The non-designated hedges are generally expected to offset the changes in value of its net non-functional currency asset and liability position resulting from foreign exchange rate fluctuations. Foreign currency denominated accounts receivable and payable are hedged with non-designated hedges when the related anticipated foreign revenue and expenses are recognized in the Company’s financial statements. The Company also hedges certain non-functional currency monetary assets and liabilities that may not be incorporated into the cash flow hedge program. The Company adjusts its non-designated hedges monthly and enters into about 15 non-designated derivatives per quarter. The average size of its non-designated hedges is approximately $2.0 million USD equivalent and these hedges range from one to five months in duration. | |||||||||||||||||||||||||
The effects of the Company’s non-designated hedged included in other income, net in the unaudited condensed consolidated statements of operations for the three months ended March 29, 2015 and March 30, 2014 are as follows (in thousands): | |||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gains (Losses) | Amount of Gains (Losses) | |||||||||||||||||||||||
Recognized in Income on Derivative | Recognized in Income | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended March 30, 2014 | ||||||||||||||||||||||||
29-Mar-15 | |||||||||||||||||||||||||
Foreign currency forward contracts | Other income (expense), net | $ | 3,843 | $ | (766 | ) | |||||||||||||||||||
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income Per Share | Net Income Per Share | |||||||
Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include outstanding stock options and unvested restricted stock awards, which are reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of stock-based compensation cost for future services that the Company has not yet recognized, and the estimated tax benefit that would be recorded in additional paid-in capital upon exercise are assumed to be used to repurchase shares. | ||||||||
Net income per share for the three months ended March 29, 2015 and March 30, 2014 are as follows (in thousands, except per share data): | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Net income | $ | 8,011 | $ | 14,411 | ||||
Denominator: | ||||||||
Weighted average common shares - basic | 34,678 | 36,630 | ||||||
Potentially dilutive common share equivalent | 607 | 675 | ||||||
Weighted average common shares - dilutive | 35,285 | 37,305 | ||||||
Basic net income per share | $ | 0.23 | $ | 0.39 | ||||
Diluted net income per share | $ | 0.23 | $ | 0.39 | ||||
Anti-dilutive employee stock-based awards, excluded | 2,368 | 2,568 | ||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The income tax provision was $10.0 million, or an effective tax rate of 55.6%, and $9.0 million, or an effective tax rate of 38.5% for the three months ended March 29, 2015 and March 30, 2014, respectively. During the three months ended March 29, 2015 and March 30, 2014, the Company incurred losses in a jurisdiction where no tax benefit could be recorded. As a result, the forecasted earnings from this jurisdiction were excluded from the determination of tax expense for the respective periods. The increase in the effective tax rate for the three month period ended March 29, 2015 compared to the same period in the prior year was primarily caused by an increase in losses incurred in a jurisdiction where no tax benefit could be recorded as well as a shift in the distribution of earnings to jurisdictions with relatively higher tax rates. | |
The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions resulting from the expiration of statutes of limitation in multiple jurisdictions in the next twelve months is approximately $1.1 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. |
Commitments_And_Contingencies_
Commitments And Contingencies Commitments And Contingencies (Notes) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies | |||||||
Leases | ||||||||
The Company leases office space, cars and equipment under operating leases, some of which are non-cancelable, with various expiration dates through December 2026. The terms of some of the Company’s office leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. | ||||||||
Purchase Obligations | ||||||||
The Company has entered into various inventory-related purchase agreements with suppliers. Generally, under these agreements, 50% of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25% of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date. Orders are non-cancelable within 30 days prior to the expected shipment date. At March 29, 2015, the Company had approximately $135 million in non-cancelable purchase commitments with suppliers. The Company establishes a loss liability for all products it does not expect to sell for which it has committed purchases from suppliers. Such losses have not been material to date. From time to time the Company’s suppliers procure unique complex components on the Company's behalf. If these components do not meet specified technical criteria or are defective, the Company should not be obligated to purchase the materials. However, disputes may arise as a result and significant resources may be spent resolving such disputes. | ||||||||
Warranty Obligations | ||||||||
Changes in the Company’s warranty obligation, which is included in other accrued liabilities in the unaudited condensed consolidated balance sheets, are as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Balance as of beginning of the period | $ | 44,888 | $ | 48,754 | ||||
Provision for warranty obligation made during the period | 16,255 | 14,158 | ||||||
Settlements made during the period | (18,266 | ) | (17,509 | ) | ||||
Balance at end of period | $ | 42,877 | $ | 45,403 | ||||
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 these indemnification agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of March 29, 2015. | ||||||||
In its sales agreements, the Company typically agrees to indemnify its direct customers, distributors and resellers for any expenses or liability resulting from claimed infringements by the Company's products of patents, trademarks or copyrights of third parties, subject to customary carve outs. The terms of these indemnification agreements are generally perpetual any time after execution date of the respective agreement. The maximum amount of potential future infringement indemnification is generally unlimited. The Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of March 29, 2015. | ||||||||
Employment Agreements | ||||||||
The Company has signed various employment agreements with key executives pursuant to which, if their employment is terminated without cause, such employees are entitled to receive their base salary (and commission or bonus, as applicable) for 52 weeks (for the Chief Executive Officer), 39 weeks (for the Senior Vice President of Worldwide Operations and Support) and up to 26 weeks (for other key executives). Such employees will also continue to have stock options vest for up to a one-year period following such termination without cause. If a termination without cause or resignation for good reason occurs within one year of a change in control, such employees are entitled to full acceleration (for the Chief Executive Officer) and up to two years acceleration (for other key executives) of any unvested portion of his or her equity awards. The Company has no liabilities recorded for these agreements as of March 29, 2015. | ||||||||
Litigation and Other Legal Matters | ||||||||
The Company is involved in disputes, litigation, and other legal actions, including, but not limited to, the matters described below. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. In such cases, the Company accrues for the amount, or if a range, the Company accrues the low end of the range as a component of legal expense within litigation reserves, net. The Company monitors developments in these legal matters that could affect the estimate the Company had previously accrued. In relation to such matters, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position within the next twelve months, or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, which could result in the need to adjust the liability and record additional expenses. | ||||||||
Ericsson v. NETGEAR, Inc. | ||||||||
On September 14, 2010, Ericsson Inc. and Telefonaktiebolaget LM Ericsson (collectively “Ericsson”) filed a patent infringement lawsuit against the Company and defendants D-Link Corporation, D-Link Systems, Inc., Acer, Inc., Acer America Corporation, and Gateway, Inc. in the U.S. District Court, Eastern District of Texas alleging that the defendants infringe certain Ericsson patents. The Company has been accused of infringing eight U.S. patents: 5,790,516 (the “‘516 Patent”); 6,330,435 (the “‘435 Patent”); 6,424,625 (the “‘625 Patent”); 6,519,223 (the “‘223 Patent”); 6,772,215 (the “‘215 Patent”); 5,987,019 (the “‘019 Patent”); 6,466,568 (the “‘568 Patent”); and 5,771,468 (the “'468 Patent"). Ericsson generally alleges that the Company and the other defendants have infringed and continue to infringe the Ericsson patents through the defendants' IEEE 802.11-compliant products. In addition, Ericsson alleged that the Company infringed the claimed methods and apparatuses of the '468 Patent through the Company's PCMCIA routers. The Company filed its answer to the Ericsson complaint on December 17, 2010 where it asserted the affirmative defenses of noninfringement and invalidity of the asserted patents. On March 1, 2011, the defendants filed a motion to transfer venue to the District Court for the Northern District of California and their memorandum of law in support thereof. On March 21, 2011, Ericsson filed its opposition to the motion, and on April 1, 2011, defendants filed their reply to Ericsson's opposition to the motion to transfer. On June 8, 2011, Ericsson filed an amended complaint that added Dell, Toshiba and Belkin as defendants. At the status conference held on Jun 9, 2011, the Court set a Markman (claim construction) hearing for June 28, 2012 and trial for June 3, 2013. On June 14, 2011, Ericsson submitted its infringement contentions against the Company. On September 29, 2011, the Court denied the defendants' motion to transfer venue to the Northern District of California. In advance of the Markman hearing, the parties on March 9, 2012 exchanged proposed constructions of claim terms and on April 9, 2012 filed the Joint Claim Construction Statement with the District Court. On May 8, 2012, Ericsson submitted its opening Markman brief and on June 1, 2012 the defendants submitted their responsive Markman brief. Ericsson's Reply Markman brief was submitted June 15, 2012, and on June 28, 2012 the Markman hearing was held in the Eastern District of Texas. On June 21, 2012, Ericsson dismissed the '468 Patent (“Multi-purpose base station”) with prejudice and gave the Company a covenant not to sue as to products in the marketplace now or in the past. On June 22, 2012, Intel filed its Complaint in Intervention, meaning that Intel became an official defendant in the Ericsson case. The parties thereafter completed fact discovery and exchanged expert reports. During the exchange of the expert reports, Ericsson dropped the '516 Patent (the OFDM “pulse shaping” patent). In addition, Ericsson dropped the '223 Patent (packet discard patent) against all the defendants' products, except for those products that use Intel chips. Thus, Ericsson has now dropped the '468 Patent (wireless base station), the '516 Patent (OFDM pulse shaping), and the '223 Patent (packet discard patent) for all non-Intel products. The five remaining patents are all only asserted against 802.11-compliant products. | ||||||||
At a Court ordered mediation in Dallas on January 15, 2013, the parties did not come to an agreement to settle the litigation. On March 8, 2013, the parties received the Markman Order in response to the claim construction briefing and claim construction hearing. | ||||||||
A jury trial in the Ericsson case occurred in the Eastern District of Texas from June 3 through June 13, 2013. After hearing the evidence, the jury found no infringement of the '435 and '223 Patents, and the jury found infringement of claim 1 of the '625 Patent, claims 1 and 5 of the '568 Patent, and claims 1 and 2 of the '215 Patent. The jury also found that there was no willful infringement by any defendant. Additionally, the jury found no invalidity of the asserted claims of the '435 and '625 Patents. The jury assessed the following damages against the defendants: D-Link: $435,000; NETGEAR: $3,555,000; Acer/Gateway: $1,170,000; Dell: $1,920,000; Toshiba: $2,445,000; Belkin: $600,000. The damages awards equate to 15 cents per unit for each accused 802.11 device sold by each defendant. Thus, unless the defendants' various appeals are successful, the Company will likely have a 15 cent per unit obligation on its 802.11 devices until 2016 (when one infringed patent in suit expires), 10 cent per unit obligation from 2016 through 2018 (when a second infringed patent in suit expires), and a 5 cent per unit obligation from 2018 through 2020 (when the third and last infringed patent in suit expires). | ||||||||
The Company and other defendants submitted various post-trial motions and briefs to the Court for its consideration, including motions and briefs for judgment as a matter of law in favor of defendants on non-infringement and invalidity of the patents in suit and for a reduction in damages, and the defendants have also moved for a new trial. These motions were argued before the Court on July 16, 2013. On August 6, 2013, the Court issued its orders on the various JMOL's (“Judgment as a Matter of Law”) and other post-trial motions. The Court denied all the defendants’ motions and set the reasonable and nondiscriminatory (RAND) royalty rate for the infringed patents equivalent to the jury verdict of 15 cents per unit. | ||||||||
After negotiations, Ericsson and the Company agreed to the following as collateral while the appeal of the verdict, Court’s rulings, and the RAND royalty rate are pending. Ericsson will forego collecting the $3,555,000 verdict plus various fees (Prejudgment interest of $224,141; Post-judgment interest of $336 per day; Costs of $41,667) assigned to the Company pending appeal, so long as a Company representative declares and provides Ericsson with adequate quarterly assurances that the judgment can still be paid. For the ongoing royalties of 15 cents per 802.11n or 802.11ac device sold by the company that the jury and Court awarded, the Company will place the ongoing royalty amount into the Court’s registry (escrow account) and will give Ericsson a corresponding royalty report until the Company’s appeals of the jury verdict, the Court’s orders, and the RAND royalty rate are exhausted. | ||||||||
On December 16, 2013, the defendants submitted their appeal brief to the Federal Circuit. Ericsson filed its response brief on February 20, 2014, and the defendants filed their reply brief before on March 24, 2014. The oral arguments before the Federal Circuit took place on June 5, 2014. | ||||||||
On December 4, 2014, the Federal Circuit issued its opinion and order in the Company’s Ericsson appeal. The Federal Circuit vacated the entirety of the $3.6 million jury verdict against the Company and the ongoing 15 cent per unit royalty verdict, and also vacated the entirety of the verdict against the other defendants and their ongoing royalties, finding that the District Court hadn’t properly instructed the jury on royalty rates and Ericsson’s licensing promises. The Federal Circuit held that the lower court had failed to adequately instruct the jury about Ericsson’s actual commitments to license the infringed patents on reasonable and nondiscriminatory (“RAND”) terms. Further, the Federal Circuit stated that the lower court had neglected to inform the jury that a royalty for a patented technology must be removed from the value of the entire standard, and that a RAND royalty rate should be based on the invention’s value, rather than any added value from standardization. The jury’s damages awards were therefore completely vacated, and the case was remanded for further proceedings. As of the end of the fourth quarter of 2014, based on the Federal Circuit’s opinion and order, the Company made adjustments to decrease the accrual related to this case. | ||||||||
While the Federal Circuit found the district court had inadequate jury instructions, it held that there was enough evidence for the jury to find infringement of two claims of U.S. Patent Number 6,466,568 and two claims of U.S. Patent Number 6,772,215, but reversed the lower court’s decision not to grant a noninfringement judgment as a matter of law regarding the third patent, U.S. Patent Number 6,424,625, finding that no reasonable jury could find that the ‘625 Patent was infringed by the defendants. | ||||||||
Neither Ericsson nor the defendants appealed the Federal Circuit’s decision, and the Federal Circuit issued its mandate and sent the case back to the U.S. District Court in the Eastern District of Texas for a new damages trial. No proceedings have yet taken place in the U.S. District Court in the Eastern District of Texas following the Federal Circuit’s mandate. | ||||||||
In September of 2013, Broadcom filed petitions in the USPTO at the Patent Trial and Appeal Board (PTAB) seeking inter partes review (“IPR”) of Ericsson’s three patents that the jury found were infringed by the Company and other defendants. On March 6, 2015, the PTAB invalidated all the claims of these three patents that were asserted against the Company and other defendants at trial -- claim 1 of the '625 Patent, claims 1 and 5 of the '568 Patent, and claims 1 and 2 of the '215 Patent -- ruling these claims were anticipated or obvious in light of prior art. The PTAB also rejected two motions to amend by Ericsson, which sought to substitute certain proposed claims in the ‘625 and ‘568 patents, should they be found unpatentable by the PTAB. This PTAB decision comes on top of the Federal Circuit decision (a) vacating the jury verdict after finding that the district court had not properly instructed the jury on royalty rates and Ericsson’s licensing promises, and (b) ruling that no reasonable jury could have found the ‘625 Patent infringed. Ericsson can appeal the PTAB decision to the Federal Circuit and also recently requested that the PTAB reconsider its decision. The present status of the case, however, is that the Company does not infringe on any valid Ericsson patent, and accordingly the Company reversed the accruals related to this case. | ||||||||
Agenzia Entrate Provincial Revenue Office 1 of Milan v. NETGEAR International, Inc. | ||||||||
In November 2012, the Italian Tax Police began a comprehensive tax audit of NETGEAR International, Inc.’s Italian Branch. The scope of the audit initially was from 2004 through 2011 and was subsequently expanded to include 2012. The tax audit encompasses Corporate Income Tax (IRES), Regional Business Tax (IRAP) and Value-Added Tax (VAT). In December 2013 and December 2014, 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 and the 2005 through 2007 tax years, respectively. All other years remain under audit. In May 2014, the Company filed with the Provincial Tax Court of Milan (Tax Court) a Request for Hearing in Open Court and Request for Suspension of the Tax Assessment for the 2004 year. The hearing was held and decision was issued on November 7, 2014. The Tax Court found in favor of the Company and nullified the assessment by the Inland Revenue Agency for 2004. The Inland Revenue Agency has until June 19, 2015 to appeal the decision of the Tax Court. With respect to 2005 through 2007, the Company is currently evaluating possible responses and defenses to the assessments. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. | ||||||||
Spansion LLC v. NETGEAR, Inc. | ||||||||
On August 1, 2013, Spansion LLC (“Spansion”) filed a section 337 complaint with the U.S. International Trade Commission (“ITC”) naming: the Company; Belkin International, Inc. (“Belkin”); ASUSTek Computer Inc. and Asus Computer International (collectively, “ASUS”); D-Link Corporation and D-Link System, Inc. (collectively, “D-Link”); Nintendo Co., Ltd. and Nintendo of America, Inc. (collectively, “Nintendo”); and Macronix America, Inc., Macronix Asia Limited, and Macronix (Hong Kong) Co., Ltd. (collectively “Macronix”), as proposed respondents. The complaint is styled Certain Flash Memory Chips and Products Containing the Same. Spansion is seeking a general exclusion order, or in the alternative a limited exclusion order, as well as a cease and desist order. | ||||||||
Spansion has asserted six patents related to the manufacture, structure, and operation of flash memory cells, as well as security protection systems for flash memory devices: | ||||||||
US Patent No. 6,369,416 “Semiconductor Device with Contacts Having a Sloped Profile” (the “‘416 Patent”) | ||||||||
US Patent No. 6,459,625 “Three Metal Process for Optimizing Layout Density” (the “‘625 Patent”) | ||||||||
US Patent No. 6,731,536 “Password and Dynamic Protection of Flash Memory Data” (the “‘536 Patent”) | ||||||||
US Patent No. 6,900,124 “Patterning for Elliptical Vss Contact on Flash Memory” (the “‘124 Patent”) | ||||||||
US Patent No. 7,018,922 “Patterning for Elongated Vss Contact on Flash Memory” (the “‘922 Patent”) | ||||||||
US Patent No. 7,151,027 “Method and Device for Reducing Interface Area of a Memory Device” (the “‘027 Patent”) | ||||||||
Four of the asserted patents, the '416, '625, '124, and '922 Patents, were previously asserted by Spansion in the 337-TA-735 Investigation against Samsung, Apple, Nokia, PNY, RIM, and Transcend. ITC records indicate the 735 Investigation terminated based on settlement agreements prior to the hearing on the merits. | ||||||||
The accused products are identified as flash memory chips manufactured and sold by Macronix, as well as downstream products which contain the accused Macronix flash memory chips. The complaint specifically identifies the Company WNR1000 wireless router, as an exemplary accused product, but makes clear that Spansion intends to expand the scope of accused products to include additional products, if any, which contain the accused Macronix flash memory chips. | ||||||||
In addition, on August 1, 2013, Spansion filed a parallel similar complaint against the same parties in the Northern District of California. The Northern District of California case was stayed pending the outcome of the ITC case. | ||||||||
On January 27, 2015, Spansion and Macronix announced that the companies had settled all outstanding patent disputes and actions, including their respective complaints at the US International Trade Commission as well as District Court, inter partes review proceedings at USPTO, and Macronix's patent infringement complaint against Spansion in Germany. As part of the settlement, both companies agreed to dismiss all patent cases between them and their downstream customers worldwide. Shortly after this settlement, Spansion’s lawsuits against the Company were dismissed by Spansion. This litigation matter did not have a material financial impact to the Company. | ||||||||
Innovative Wireless Solutions LLC v. NETGEAR, Inc. | ||||||||
In November of 2013, Innovative Wireless Solutions (“Innovative Wireless Solutions”) filed a new wave of suits targeting 14 wireless router and networking companies including Adtran, Arris, Aruba Networks, Belkin, Buffalo, Engenius Technologies, Fortinet, IC Intracom, Motorola Solutions, SMC Networks, Ubiquiti Networks, Western Digital and Zoom Telephonics. Previously, in April of 2013, Innovative Wireless had filed 41 suits targeting hotels and restaurant chains over wireless Internet services. The Company was sued on November 6, 2013 in the District of Delaware. | ||||||||
The three patents-in-suit (5,912,895 entitled “Information network access apparatus and methods for communicating information packets via telephone lines” ( the “‘895 Patent”); 6,327,264 entitled “Information network access apparatus and methods for communicating information packets via telephone lines” (the “’264 Patent”); and 6,587,473 entitled “Information network access apparatus and methods for communicating information packets via telephone lines” (the “‘473 Patent”) originally were part of a portfolio of Nortel Networks’ patents before they were eventually transferred to Innovative Wireless in March 2013. | ||||||||
The Company filed its answer on January 13, 2014, asserting various affirmative defenses. The initial scheduling conference occurred on May 22, 2014. At the conference, the Court requested that the parties agree on a dispositive motion and trial schedule, including determining the chronological order for the trials of the numerous separate cases filed by the plaintiff. In June 2014, the Company submitted its Rule 26(a) initial disclosures Default Disclosures, as required by the Local Rules. On July 14, 2014, the plaintiff submitted its Initial Identification of Asserted Claims and Accused Products. In total, IWS identified 39 categories of products (spanning 110 separate product models) as allegedly infringing products. On August 7, 2014, the Company filed its First Amended Answer in the lawsuit that added the Affirmative Defenses of License, Estoppel and Laches, and a reasonable and non-discriminatory licensing (RAND) defense. | ||||||||
In a separate case between IWS and Cisco, Hewlett Packard, and Ruckus that was proceeding in the U.S. District Court for the Western District of Texas, the District Court issued a claim construction order that is unfavorable to IWS and that IWS plans to appeal. Thus, on March 3, 2015, in light of the unfavorable Markman ruling for IWS, judgment was entered in the W.D. Tex. case, dismissing IWS’s claims against the Texas defendants, Cisco and Ruckus. While the IWS case proceeding in the Western District of Texas was separate from IWS’s lawsuit against the Company in Delaware, the patents in suit were the same in the two cases. Consequently, IWS also agreed to an entry of judgment in the Delaware cases on grounds of IWS’s acknowledgment that: (a) the final judgments entered in the Cisco and Ruckus cases in Texas bar IWS’s claims for infringement against the Delaware defendants, including the Company, pursuant to the doctrine of collateral estoppel and (b) the pendency of an appeal of the judgments in the Cisco and Ruckus cases would not preclude the application of the doctrine of collateral estoppel to the Delaware cases. Thus, on March 20 2015, IWS dismissed without prejudice its cases against the Company and other Delaware defendants. As agreed by the Company and other Delaware defendants, IWS may move to reopen the case should it prevail before the Federal Circuit on its appeal before the Federal Circuit of the unfavorable Markman ruling issued by the District Court for the Western District of Texas. This litigation matter did not have a material financial impact to the Company. | ||||||||
Via Vadis v. NETGEAR, Inc. | ||||||||
On August 22, 2014, the Company was sued by Via Vadis, LLC and AC Technologies, S.A. (“Via Vadis”), in the Western District of Texas. The complaint alleges that the Company’s ReadyNAS and Stora products “with built-in BitTorrent software" allegedly infringe three related patents of Via Vadis (U.S. Patent Nos. 7,904,680, RE40,521, and 8,656,125). Via Vadis filed similar complaints against Belkin, Buffalo, Blizzard, D-Link, and Amazon. | ||||||||
By referring to “built-in BitTorrent software,” the Company believes that the complaint is referring to the BitTorrent Sync application, which was released by BitTorrent Inc. in spring of 2014. At a high-level, the application allows file synchronization across multiple devices by storing the underlying files on multiple local devices, rather than on a centralized server. The Company’s ReadyNAS products do not include BitTorrent software when sold. The BitTorrent application is provided as one of a multitude of potential download options, but the software itself is not included on the Company’s devices when shipped. Therefore, the only viable allegation at this point is an indirect infringement allegation. | ||||||||
On November 10, 2014, the Company answered the complaint denying that it infringes the patents in suit and also asserting the affirmative defenses that the patents in suit are invalid and barred by the equitable doctrines of laches, waiver, and/or estoppel. | ||||||||
On February 5, 2015, the Court set the claim construction hearing for December 4, 2015 and allowed discovery for claim construction purposes to commence. On February 6, 2015, the Company filed its motion to transfer 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. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. | ||||||||
SOTA Semiconductor LLC v. NETGEAR, Inc. | ||||||||
On October 20, 2014, the Company was sued by a non-practicing entity named SOTA Semiconductor LLC. The complaint includes a number of defendants, and alleges that joinder is appropriate because the allegations against all of the defendants are based on each defendant’s incorporation of Marvell Semiconductor, Inc.’s (“Marvell”) chips in their products. Marvell is also a named defendant. Although there are two patents asserted against some of the defendants in the complaint, the Company is only accused on one of the two (U.S. Patent No. 5,991,545 (the "'545 Patent"), entitled “Microcomputer Having Variable Bit Width Area For Displacement And Circuit For Handling Immediate Data Larger Than Instruction Word”). The allegations are based on the Company’s use of what the complaint describes as “Marvell Thumb Processors”. The complaint alleges that the “infringing devices include without limitation NETGEAR’s ReadyNAS network attached storage devices model numbers RN10200, RN10211D, RN10222D, RN10223D, RN10400, RN10421D, RN10441D and RN10442D and ReadyNAS Business Rackmount Series network attached storage devices model numbers RN2120, RN21241D, RN21242D, RN21241E, RN21242E, RN21243E and RN21244E.” | ||||||||
On December 12, 2014, the Company answered the complaint with various affirmative defenses and asserted the counterclaims of noninfrigement and invalidity. | ||||||||
On December 16, 2014, the Court set an initial scheduling conference for February 23, 2015. That Court action triggered several deadlines, including the beginning of claim construction discovery on March 23, 2015. | ||||||||
At the end of December 2014, SOTA granted RPX Corporation a license. This is significant because co-defendant Marvell, who provides the chips for the Company’s ReadyNAS units that are accused of infringement, is an RPX member and RPX members’ customers are generally covered by RPX licenses. Consequently, on March 17, 2015, after stipulation by the Company and SOTA, the Court dismissed with prejudice all claims that were alleged or could have been alleged by SOTA against the Company based on or relating to the alleged infringement the ‘545 Patent by the Marvell microprocessors. All other claims that were or could have been alleged by SOTA against the Company were dismissed without prejudice. All counterclaims and defenses which were or could have been alleged by the Company based on the alleged infringement of the ‘545 patent by the Marvell and non-Marvell microprocessors, including counterclaims and defenses of patent invalidity and unenforceability, were dismissed without prejudice. Thus, the case was resolved without a material financial impact to the Company. | ||||||||
Wetro Lan v. NETGEAR, Inc. | ||||||||
On January 30, 2015, the Company was sued by a non-practicing entity called Wetro Lan LLC (“Wetro Lan”) in United States District Court, Eastern District of Texas, Marshall Division. Wetro Lan alleges direct infringement by the Company of United States Patent No. 6,795,918 (“the "‘918 Patent”) entitled “Service Level Computer Security” based on the Company’s manufacture and selling of the “NETGEAR WGR614v9 Wireless Router and similarly situated NETGEAR, Inc. Wireless Routers.” The Company filed its answer to the complaint on April 13, 2015. It is too early to reasonably estimate any financial impact to the Company resulting from this litigation matter. | ||||||||
Rothschild Connected Devices Innovations, LLC v NETGEAR, Inc.. | ||||||||
On February 6, 2015, the Company was sued by a non-practicing entity called Rothschild Connected Devices Innovations, LLC (“Rothschild”) in United States District Court, Eastern District of Texas. Rothschild alleges direct or indirect infringement by the Company of United States Patent No. 8,788,090 (“the ‘090 patent”) entitled “System and Method for Creating a Personalized Consumer Product” through the Company’s “making, using, importing, selling, and/or offering for sale a customizable home security camera system covered by one or more claims of the ‘090 patent.” The accused device is the Company’s Arlo camera system. The answer was originally due on March 27, 2015, but the Company received an extension from Rothschild until April 29, 2015 to answer the Complaint. On March 26, 2015, the Company sent Rothschild a letter detailing the severe defects in Rothschild’s case against the Company, providing Rothschild the opportunity to withdraw the lawsuit, and threatening to seek sanctions against Rothschild and its attorneys if the lawsuit was not withdrawn. The Company set a deadline for dismissal without seeking sanctions of April 17, 2015, and on April 17, 2015 Rothschild voluntarily dismissed the case. This litigation matter did not have a material financial impact to the Company. | ||||||||
IP Indemnification Claims | ||||||||
In its sales agreements, the Company typically agrees to indemnify its direct customers, distributors and resellers (the “Indemnified Parties”) for any expenses or liability resulting from claimed infringements by the Company's products of patents, trademarks or copyrights of third parties that are asserted against the Indemnified Parties, subject to customary carve outs. The terms of these indemnification agreements are generally perpetual after execution of the agreement. The maximum amount of potential future indemnification is generally unlimited. From time to time, the Company receives requests for indemnity and may choose to assume the defense of such litigation asserted against the Indemnified Parties. | ||||||||
Environmental Regulation | ||||||||
The Company is required to comply and is currently in compliance with the European Union ("EU") and other Directives on the Restrictions of the use of Certain Hazardous Substances in Electrical and Electronic Equipment (“RoHS”), Waste Electrical and Electronic Equipment ("WEEE") requirements, Energy Using Product (“EuP”) requirements, the REACH Regulation, Packaging Directive and the Battery Directive. | ||||||||
The Company is subject to various federal, state, local, and foreign environmental laws and regulations, including those governing the use, discharge, and disposal of hazardous substances in the ordinary course of our manufacturing process. The Company believes that its current manufacturing and other operations comply in all material respects with applicable environmental laws and regulations; however, it is possible that future environmental legislation may be enacted or current environmental legislation may be interpreted to create an environmental liability with respect to its facilities, operations, or products. See further discussion of the business risks associated with environmental legislation under the risk titled, "We are subject to, and must remain in compliance with, numerous laws and governmental regulations concerning the manufacturing, use, distribution and sale of our products, as well as any such future laws and regulations. Some of our customers also require that we comply with their own unique requirements relating to these matters. Any failure to comply with such laws, regulations and requirements, and any associated unanticipated costs, may adversely affect our business, financial condition and results of operations." within Item 1A Risk Factors of this Form 10-Q. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Stockholders' Equity | Stockholders' Equity | ||||||||||||
Common Stock Repurchase Program | |||||||||||||
On October 21, 2008, the Company’s Board of Directors authorized management to repurchase up to 6.0 million shares of the Company’s outstanding common stock. Under this authorization, 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. On October 17, 2014, the Board of Directors authorized the management to repurchase up to 3.0 million shares of the Company's outstanding common stock which, at the time of authorization, were incremental to the remaining shares under the Company's previous share repurchase program. The Company repurchased, reported based on trade date, 0.3 million shares of common stock at a cost of $8.3 million under this authorization during the three months ended March 29, 2015, which leaves approximately 2.7 million shares remaining in the buyback program. The Company repurchased, reported based on trade date, 0.5 million shares of common stock at a cost of $15.9 million under this authorization during the three months ended March 30, 2014. | |||||||||||||
The Company repurchased, as reported based on trade date, approximately 7,000 shares of common stock at a cost of $0.2 million under a repurchase program to help administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving restricted stock units ("RSUs") during the three months ended March 29, 2015. Similarly, during the three months ended March 30, 2014, the Company repurchased approximately 1,000 shares of common stock at a cost of $33,000 under the same program to help facilitate tax withholding for RSUs. | |||||||||||||
These shares were retired upon repurchase. The purchase price for the shares of the Company’s stock repurchased is reflected as a reduction to stockholders’ equity. The Company’s policy related to repurchases of its common stock is to charge the excess of cost over par value to retained earnings. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. | |||||||||||||
Accumulated Other Comprehensive Income, Net | |||||||||||||
The following table sets forth the changes in accumulated other comprehensive income ("AOCI") by component, net of tax, for the three months ended March 29, 2015 (in thousands): | |||||||||||||
Gains and losses on available for sale securities | Gains and losses on derivatives | Total | |||||||||||
Beginning balance as of December 31, 2014 | $ | (5 | ) | $ | 43 | $ | 38 | ||||||
Other comprehensive income (loss) before reclassifications | 6 | (195 | ) | (189 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 171 | 171 | ||||||||||
Net current period other comprehensive income (loss) | 6 | (24 | ) | (18 | ) | ||||||||
Ending balance as of March 29, 2015 | $ | 1 | $ | 19 | $ | 20 | |||||||
The following tables provide details about significant amounts reclassified out of each component of AOCI for the three months ended March 29, 2015 and March 30, 2014 (in thousands): | |||||||||||||
Details about Accumulated Other Comprehensive Income Components | Three Months Ended March 29, 2015 | Three Months Ended March 30, 2014 | |||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Statement of Operations | Amount Reclassified from AOCI | Affected Line Item in the Statement of Operations | ||||||||||
Gains and losses on cash flow hedge: | |||||||||||||
Foreign currency forward contracts | $ | (147 | ) | Net revenue | $ | (425 | ) | Net revenue | |||||
Foreign currency forward contracts | (1 | ) | Cost of revenue | 2 | Cost of revenue | ||||||||
Foreign currency forward contracts | (23 | ) | Operating expenses | 64 | Operating expenses | ||||||||
(171 | ) | Total before tax | (359 | ) | Total before tax | ||||||||
— | Tax expense (1) | — | Tax expense (1) | ||||||||||
$ | (171 | ) | Total, net of tax | $ | (359 | ) | Total, net of tax | ||||||
-1 | Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Employee Benefits and Share-based Compensation [Abstract] | ||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||
The Company grants options and RSUs from the Amended and Restated 2006 Long-Term Incentive Plan, under which awards may be granted to all employees. Award vesting periods for this plan is generally four years. As of March 29, 2015, a total of approximately 2.2 million shares from this plan were reserved for future grants. | ||||||||
Additionally, the Company sponsors an Employee Stock Purchase Plan (the “ESPP”), pursuant to which eligible employees may contribute up to 10% of base compensation, subject to certain income limits, to purchase shares of the Company’s common stock. Employees may purchase stock semi-annually at a price equal to 85% of the fair market value on the purchase date. As of March 29, 2015, a total of approximately 0.2 million shares were reserved for future grants under the ESPP. | ||||||||
Option Activity | ||||||||
Stock option activity during the three months ended March 29, 2015 was as follows: | ||||||||
Number of shares | Weighted Average Exercise Price Per Share | |||||||
(in thousands) | (in dollars) | |||||||
Outstanding at December 31, 2014 | 3,939 | $ | 30.58 | |||||
Granted | 7 | 33.77 | ||||||
Exercised | (130 | ) | 23.88 | |||||
Cancelled | (100 | ) | 33.14 | |||||
Expired | (45 | ) | 34.68 | |||||
Outstanding at March 29, 2015 | 3,671 | $ | 30.71 | |||||
RSU Activity | ||||||||
RSU activity during the three months ended March 29, 2015 was as follows: | ||||||||
Number of shares | Weighted Average Grant Date Fair Value Per Share | |||||||
(in thousands) | (in dollars) | |||||||
Outstanding at December 31, 2014 | 858 | $ | 30.68 | |||||
RSUs granted | 21 | 33.77 | ||||||
RSUs vested | (19 | ) | 30.57 | |||||
RSUs cancelled | (64 | ) | 31.6 | |||||
Outstanding at March 29, 2015 | 796 | $ | 31.15 | |||||
Valuation and Expense Information | ||||||||
The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton option valuation model that uses the assumptions noted in the following table. The estimated expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk free interest rate is based on the implied yield currently available on U.S. Treasury securities with a remaining term commensurate with the estimated expected term. Expected volatility is based on historical volatility over the most recent period commensurate with the estimated expected term. | ||||||||
The table below sets forth the weighted average assumptions used to estimate the fair value of option grants during the three months ended March 29, 2015. There were no option grants in the three months ended March 30, 2014. | ||||||||
Three Months Ended | ||||||||
March 29, | 30-Mar-14 | |||||||
2015 | ||||||||
Expected life (in years) | 4.4 | N/A | ||||||
Risk-free interest rate | 1.06 | % | N/A | |||||
Expected volatility | 39.9 | % | N/A | |||||
Dividend yield | — | — | ||||||
The following table sets forth the stock-based compensation expense resulting from stock options, RSUs and the ESPP included in the Company’s unaudited condensed consolidated statements of operations (in thousands): | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Cost of revenue | $ | 496 | $ | 471 | ||||
Research and development | 845 | 1,396 | ||||||
Sales and marketing | 1,393 | 1,949 | ||||||
General and administrative | 1,614 | 1,314 | ||||||
Total stock-based compensation | $ | 4,348 | $ | 5,130 | ||||
As of March 29, 2015, $8.1 million of unrecognized compensation cost related to stock options, adjusted for estimated forfeitures, is expected to be recognized over a weighted-average period of 2.25 years. Additionally, $14.5 million of unrecognized compensation cost related to unvested RSUs, adjusted for estimated forfeitures, is expected to be recognized over a weighted-average period of 2.44 years. |
Segment_Information_and_Operat
Segment Information and Operations By Geographic Area | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Information and Operations By Geographic Area | Segment Information and Operations by Geographic Area | |||||||
Operating segments are components of an enterprise about which separate financial information is available and is regularly evaluated by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company operates in three specific business units: retail, commercial, and service provider. The retail business unit consists of high performance, dependable and easy-to-use home networking, home video security, storage and digital media products. The commercial business unit consists of business networking, storage and security solutions that bring enterprise class functionality down to the small and medium-sized business at an affordable price. The service provider business unit consists of made-to-order and retail proven, whole home networking hardware and software solutions as well as 4G LTE hotspots sold to service providers for sale to their subscribers. The Company believes this structure enables it to better focus its efforts on the Company's core customer segments and allows it to be more nimble and opportunistic as a company overall. | ||||||||
The Company's CEO began temporarily serving as interim general manager of the retail business unit in March 2014 and as interim general manager of the service provider business unit in February 2015, due to the previous general managers' departures from the Company. As of March 29, 2015, the CEO continued to serve as interim general manager of both business units and will do so until replacements for the positions are appointed. | ||||||||
The results of the reportable segments are derived directly from the Company’s management reporting system. The results are based on the Company’s method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the United States. Management measures the performance of each segment based on several metrics, including contribution income. Segment contribution income includes all product line segment revenues less the related cost of sales, research and development and sales and marketing costs. Contribution income is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Certain operating expenses are not allocated to segments because they are separately managed at the corporate level. These unallocated indirect costs include corporate costs, such as corporate research and development, corporate marketing expense and general and administrative costs, amortization of intangibles, stock-based compensation expense, restructuring and other charges, acquisition-related expense, losses on inventory commitments due to restructuring, litigation reserves, net, and interest and other income (expense), net. The Company does not evaluate operating segments using discrete asset information. | ||||||||
Financial information for each reportable segment and a reconciliation of segment contribution income to income before income taxes is as follows (in thousands, except percentage data): | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Net revenue: | ||||||||
Retail | $ | 120,957 | $ | 118,232 | ||||
Commercial | 72,731 | 78,863 | ||||||
Service provider | 115,469 | 152,296 | ||||||
Total net revenue | 309,157 | 349,391 | ||||||
Contribution income: | ||||||||
Retail | $ | 16,319 | $ | 14,683 | ||||
Retail contribution margin | 13.5 | % | 12.4 | % | ||||
Commercial | 16,243 | 19,540 | ||||||
Commercial contribution margin | 22.3 | % | 24.8 | % | ||||
Service Provider | 8,758 | 13,519 | ||||||
Service Provider contribution margin | 7.6 | % | 8.9 | % | ||||
Total segment contribution income | 41,320 | 47,742 | ||||||
Corporate and unallocated costs | (12,966 | ) | (13,756 | ) | ||||
Amortization of intangibles (1) | (4,396 | ) | (4,390 | ) | ||||
Stock-based compensation expense | (4,348 | ) | (5,130 | ) | ||||
Restructuring and other charges | (4,394 | ) | (842 | ) | ||||
Acquisition-related expense | — | (8 | ) | |||||
Losses on inventory commitments due to restructuring | (407 | ) | — | |||||
Litigation reserves, net | 2,690 | (117 | ) | |||||
Interest income | 52 | 57 | ||||||
Other income (expense), net | 475 | (108 | ) | |||||
Income before income taxes | $ | 18,026 | $ | 23,448 | ||||
________________________________ | ||||||||
-1 | Amount excludes amortization expense related to patents included in cost of revenue. | |||||||
The Company conducts business across three geographic regions: Americas, Europe, Middle-East and Africa (“EMEA”) and Asia Pacific ("APAC"). Net revenue by geography comprises gross revenue less such items as end-user customer rebates and other sales incentives deemed to be a reduction of net revenue per the authoritative guidance for revenue recognition, sales returns and price protection. For reporting purposes revenue is attributed to each geographic region based on the location of the customer. The following table shows net revenue by geography for the periods indicated (in thousands): | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
United States (U.S.) | $ | 170,592 | $ | 190,276 | ||||
Americas (excluding U.S.) | 3,194 | 4,503 | ||||||
United Kingdom (U.K.) | 31,365 | 41,200 | ||||||
EMEA (excluding U.K.) | 57,744 | 65,593 | ||||||
APAC | 46,262 | 47,819 | ||||||
Total net revenue | $ | 309,157 | $ | 349,391 | ||||
Property and equipment by geographic location are as follows (in thousands): | ||||||||
As of | ||||||||
March 29, | December 31, | |||||||
2015 | 2014 | |||||||
United States | $ | 11,713 | $ | 12,453 | ||||
Canada | 4,411 | 4,375 | ||||||
EMEA | 576 | 657 | ||||||
China | 9,651 | 10,786 | ||||||
APAC (excluding China) | 1,498 | 1,423 | ||||||
$ | 27,849 | $ | 29,694 | |||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Of Financial Instruments | Fair Value Measurements (in thousands) | |||||||||||||||
The following tables summarize assets and liabilities measured at fair value on a recurring basis as of March 29, 2015: | ||||||||||||||||
As of March 29, 2015 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Cash equivalents—money-market funds | $ | 19,974 | $ | 19,974 | $ | — | $ | — | ||||||||
Available-for-sale securities—U.S. treasuries (1) | 99,945 | 99,945 | — | — | ||||||||||||
Available-for-sale securities—certificates of deposit (1) | 150 | 150 | — | — | ||||||||||||
Trading securities—mutual funds (1) | 909 | 909 | — | — | ||||||||||||
Foreign currency forward contracts (2) | 2,734 | — | 2,734 | — | ||||||||||||
Total assets measured at fair value | $ | 123,712 | $ | 120,978 | $ | 2,734 | $ | — | ||||||||
-1 | Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
-2 | Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
As of March 29, 2015 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Foreign currency forward contracts (3) | $ | 389 | $ | — | $ | 389 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 389 | $ | — | $ | 389 | $ | — | ||||||||
-3 | Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2014: | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Cash equivalents—money-market funds | $ | 4,408 | $ | 4,408 | $ | — | $ | — | ||||||||
Available-for-sale securities—U.S. treasuries (1) | 114,935 | 114,935 | — | — | ||||||||||||
Available-for-sale securities—certificates of deposit (1) | 158 | 158 | — | — | ||||||||||||
Trading securities—mutual funds (1) | 802 | 802 | — | — | ||||||||||||
Foreign currency forward contracts (2) | 2,416 | — | 2,416 | — | ||||||||||||
Total assets measured at fair value | $ | 122,719 | $ | 120,303 | $ | 2,416 | $ | — | ||||||||
-1 | Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
-2 | Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Foreign currency forward contracts (3) | $ | 447 | $ | — | $ | 447 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 447 | $ | — | $ | 447 | $ | — | ||||||||
-3 | Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
The Company’s investments in cash equivalents and available-for-sale securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A-/A3 or higher. The Company’s foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that take into account the contract terms as well as currency rates and counterparty credit rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. Additionally, the Company includes an adjustment for non-performance risk in the recognized measure of fair value of derivative instruments. At March 29, 2015 and December 31, 2014, the adjustment for non-performance risk did not have a material impact on the fair value of the Company’s foreign currency forward contracts. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities. |
Shipping_and_Handling_Fees_and
Shipping and Handling Fees and Costs (Notes) | 3 Months Ended |
Mar. 29, 2015 | |
Shipping And Handling Fees And Costs [Abstract] | |
Shipping and Handling Fees and Costs [Text Block] | Shipping and Handling Fees and Costs |
The Company includes shipping and handling fees billed to customers in net revenue. Shipping and handling costs associated with inbound freight are included in cost of revenue and ending inventory. Shipping and handling costs associated with outbound freight are included in sales and marketing expenses and totaled $3.2 million and $2.8 million for the three months ended March 29, 2015 and March 30, 2014, respectively. |
Restructuring_and_Other_Charge
Restructuring and Other Charges (Notes) | 3 Months Ended | |||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||
Restructuring and Other Charges [Abstract] | ||||||||||||||||||||
Restructuring and Other Charges [Text Block] | Restructuring and Other Charges | |||||||||||||||||||
The Company incurred restructuring and other charges of $4.4 million and $0.8 million during the three months ended March 29, 2015 and March 30, 2014, respectively. Restructuring and other charges of $4.4 million recognized in the first quarter of 2015 are primarily attributable to employee termination charges recognized associated with actions taken to reduce the cost structure of the service provider business unit and supporting functions announced in February 2015. Restructuring and other charges incurred in the first quarter of 2014 were primarily attributable to one-time separation costs relating to the departure of the general manager of the retail business unit. | ||||||||||||||||||||
Accrued restructuring and other charges are classified within other accrued liabilities in the unaudited condensed consolidated balance sheets and are expected to be paid over the next twelve months. | ||||||||||||||||||||
The following table provide a summary of accrued restructuring and other charges activity for the three months ended March 29, 2015 (in thousands): | ||||||||||||||||||||
Accrued Restructuring and Other Charges at December 31, 2014 | Additions | Cash Payments | Adjustments | Accrued Restructuring and Other Charges at March 29, 2015 | ||||||||||||||||
Restructuring | ||||||||||||||||||||
Employee termination charges | $ | 316 | $ | 3,941 | $ | (2,029 | ) | $ | — | $ | 2,228 | |||||||||
Lease contract termination and other charges | $ | — | $ | 453 | $ | (119 | ) | $ | (49 | ) | $ | 285 | ||||||||
Total Restructuring and other charges | $ | 316 | $ | 4,394 | $ | (2,148 | ) | $ | (49 | ) | $ | 2,513 | ||||||||
In the second fiscal quarter of 2015, we expect to incur additional restructuring and other charges of between approximately $1.0 million and $2.0 million as we continue to execute on our plan to reduce the cost structure of the service provider business unit and supporting functions to align with the reduced revenue outlook and to concentrate resources on LTE and long-term and profitable accounts. |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Schedule Of Available-For-Sale Short-Term | Available-for-sale short-term investments (in thousands) | |||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | |||||||||||||||||||||||||
U.S. treasuries | $ | 99,944 | $ | 8 | $ | (7 | ) | $ | 99,945 | $ | 114,944 | $ | 6 | $ | (15 | ) | $ | 114,935 | ||||||||||||||
Certificates of deposits | 150 | — | — | 150 | 158 | — | — | 158 | ||||||||||||||||||||||||
Total | $ | 100,094 | $ | 8 | $ | (7 | ) | $ | 100,095 | $ | 115,102 | $ | 6 | $ | (15 | ) | $ | 115,093 | ||||||||||||||
Schedule Of Accounts Receivable And Related Allowances | Accounts receivable, net (in thousands) | |||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Gross accounts receivable | $ | 275,062 | $ | 296,239 | ||||||||||||||||||||||||||||
Allowance for doubtful accounts | (1,255 | ) | (1,255 | ) | ||||||||||||||||||||||||||||
Allowance for sales returns | (16,317 | ) | (17,489 | ) | ||||||||||||||||||||||||||||
Allowance for price protection | (2,745 | ) | (1,806 | ) | ||||||||||||||||||||||||||||
Total allowances | (20,317 | ) | (20,550 | ) | ||||||||||||||||||||||||||||
Total accounts receivable, net | $ | 254,745 | $ | 275,689 | ||||||||||||||||||||||||||||
Schedule Of Inventories | Inventories (in thousands) | |||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Raw materials | $ | 3,402 | $ | 3,625 | ||||||||||||||||||||||||||||
Work in process | 1 | 8 | ||||||||||||||||||||||||||||||
Finished goods | 197,545 | 219,250 | ||||||||||||||||||||||||||||||
Total inventories | $ | 200,948 | $ | 222,883 | ||||||||||||||||||||||||||||
Schedule Of Property And Equipment, Net | Property and equipment, net (in thousands) | |||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Computer equipment | $ | 9,984 | $ | 9,779 | ||||||||||||||||||||||||||||
Furniture, fixtures and leasehold improvements | 19,772 | 19,379 | ||||||||||||||||||||||||||||||
Software | 29,395 | 29,294 | ||||||||||||||||||||||||||||||
Machinery and equipment | 62,097 | 60,135 | ||||||||||||||||||||||||||||||
Total property and equipment, gross | 121,248 | 118,587 | ||||||||||||||||||||||||||||||
Accumulated depreciation and amortization | (93,399 | ) | (88,893 | ) | ||||||||||||||||||||||||||||
Total property and equipment, net | $ | 27,849 | $ | 29,694 | ||||||||||||||||||||||||||||
Schedule Of Purchased Intangibles, Net | Intangibles, net (in thousands) | |||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
March 29, 2015 | ||||||||||||||||||||||||||||||||
Technology | $ | 61,099 | $ | (41,781 | ) | $ | 19,318 | |||||||||||||||||||||||||
Customer contracts and relationships | 56,500 | (17,976 | ) | 38,524 | ||||||||||||||||||||||||||||
Other | 10,545 | (6,632 | ) | 3,913 | ||||||||||||||||||||||||||||
Total intangibles, net | $ | 128,144 | $ | (66,389 | ) | $ | 61,755 | |||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Technology | $ | 61,099 | $ | (39,341 | ) | $ | 21,758 | |||||||||||||||||||||||||
Customer contracts and relationships | 56,500 | (16,205 | ) | 40,295 | ||||||||||||||||||||||||||||
Other | 10,545 | (6,368 | ) | 4,177 | ||||||||||||||||||||||||||||
Total intangibles, net | $ | 128,144 | $ | (61,914 | ) | $ | 66,230 | |||||||||||||||||||||||||
Schedule Of Estimated Amortization Expense Related To Intangibles | Estimated amortization expense related to intangibles for each of the next five years and thereafter is as follows (in thousands): | |||||||||||||||||||||||||||||||
Year Ending December 31 | Amount | |||||||||||||||||||||||||||||||
2015 (remaining nine months) | $ | 12,808 | ||||||||||||||||||||||||||||||
2016 | 16,921 | |||||||||||||||||||||||||||||||
2017 | 11,386 | |||||||||||||||||||||||||||||||
2018 | 7,871 | |||||||||||||||||||||||||||||||
2019 | 6,028 | |||||||||||||||||||||||||||||||
Thereafter | 6,741 | |||||||||||||||||||||||||||||||
Total estimated amortization expense | $ | 61,755 | ||||||||||||||||||||||||||||||
Schedule of Other Assets, Noncurrent | Other non-current assets (in thousands) | |||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | 31-Dec-14 | |||||||||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
Non-current deferred income taxes | $ | 39,418 | $ | 38,696 | ||||||||||||||||||||||||||||
Cost method investment | 1,322 | 1,322 | ||||||||||||||||||||||||||||||
Other | 7,913 | 8,059 | ||||||||||||||||||||||||||||||
Total other non-current assets | $ | 48,653 | $ | 48,077 | ||||||||||||||||||||||||||||
Schedule Of Other Accrued Liabilities | Other accrued liabilities (in thousands) | |||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
March 29, | December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Sales and marketing programs | $ | 45,203 | $ | 54,582 | ||||||||||||||||||||||||||||
Warranty obligation | 42,877 | 44,888 | ||||||||||||||||||||||||||||||
Freight | 5,788 | 6,827 | ||||||||||||||||||||||||||||||
Other | 28,300 | 37,445 | ||||||||||||||||||||||||||||||
Total other accrued liabilities | $ | 122,168 | $ | 143,742 | ||||||||||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule Of Fair Values Of The Company's Derivative Instruments And The Line Items On The Consolidated Balance Sheets | The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded as of March 29, 2015 and December 31, 2014 are summarized as follows (in thousands): | ||||||||||||||||||||||||
Derivative Assets | Balance Sheet | Fair Value at | Balance Sheet | Fair Value at | |||||||||||||||||||||
Location | 29-Mar-15 | Location | December 31, 2014 | ||||||||||||||||||||||
Derivative assets not designated as hedging instruments | Prepaid expenses and other current assets | $ | 2,724 | Prepaid expenses and other current assets | $ | 2,416 | |||||||||||||||||||
Derivative assets designated as hedging | Prepaid expenses and other current assets | 10 | Prepaid expenses and other current assets | — | |||||||||||||||||||||
instruments | |||||||||||||||||||||||||
Total | $ | 2,734 | $ | 2,416 | |||||||||||||||||||||
Derivative Liabilities | Balance Sheet | Fair Value at March 29, 2015 | Balance Sheet | Fair Value at | |||||||||||||||||||||
Location | Location | December 31, 2014 | |||||||||||||||||||||||
Derivative liabilities not designated as hedging instruments | Other accrued liabilities | $ | 389 | Other accrued liabilities | $ | 409 | |||||||||||||||||||
Derivative liabilities designated as hedging instruments | Other accrued liabilities | — | Other accrued liabilities | 38 | |||||||||||||||||||||
Total | $ | 389 | $ | 447 | |||||||||||||||||||||
Schedule of Offsetting of Derivative Assets | The following tables set forth the offsetting of derivative assets as of March 29, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||||||||||
As of March 29, 2015 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 1,188 | $ | — | $ | 1,188 | $ | (161 | ) | $ | — | $ | 1,027 | ||||||||||||
J.P. Morgan Chase | 227 | — | 227 | (1 | ) | — | 226 | ||||||||||||||||||
Wells Fargo | 1,319 | — | 1,319 | (227 | ) | — | 1,092 | ||||||||||||||||||
Total | $ | 2,734 | $ | — | $ | 2,734 | $ | (389 | ) | $ | — | $ | 2,345 | ||||||||||||
As of December 31, 2014 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Assets Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 319 | $ | — | $ | 319 | $ | (16 | ) | $ | — | $ | 303 | ||||||||||||
Wells Fargo | 2,097 | — | 2,097 | (431 | ) | — | 1,666 | ||||||||||||||||||
Total | $ | 2,416 | $ | — | $ | 2,416 | $ | (447 | ) | $ | — | $ | 1,969 | ||||||||||||
Schedule of Offsetting of Derivative Liabilities | The following tables set forth the offsetting of derivative liabilities as of March 29, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||||||||||
As of March 29, 2015 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 161 | $ | — | $ | 161 | $ | (161 | ) | $ | — | $ | — | ||||||||||||
JP Morgan Chase | 1 | — | 1 | (1 | ) | — | — | ||||||||||||||||||
Wells Fargo | 227 | — | 227 | (227 | ) | — | — | ||||||||||||||||||
Total | $ | 389 | $ | — | $ | 389 | $ | (389 | ) | $ | — | $ | — | ||||||||||||
As of December 31, 2014 | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Of Liabilities Presented in the Condensed Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
Barclays | $ | 16 | $ | — | $ | 16 | $ | (16 | ) | $ | — | $ | — | ||||||||||||
Wells Fargo | 431 | — | 431 | (431 | ) | — | — | ||||||||||||||||||
Total | $ | 447 | $ | — | $ | 447 | $ | (447 | ) | $ | — | $ | — | ||||||||||||
Schedule Of Company's Derivative Instruments On Other Comprehensive Income And The Consolidated Statement Of Operations | The effects of the Company’s derivative instruments on OCI and the unaudited condensed consolidated statement of operations for the three months ended March 29, 2015 and March 30, 2014 are summarized as follows (in thousands): | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Three Months Ended March 29, 2015 | ||||||||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) | Location of | Amount of Gain (Loss) Recognized in | |||||||||||||||||||||
Recognized in | Gain (Loss) | Reclassified | Gain (Loss) | Income and | |||||||||||||||||||||
OCI - | Reclassified from OCI | from | Recognized in | Excluded from | |||||||||||||||||||||
Effective | into Income - Effective | OCI into | Income and | Effectiveness Testing | |||||||||||||||||||||
Portion (a) | Portion | Income - | Excluded from | ||||||||||||||||||||||
Effective | Effectiveness Testing | ||||||||||||||||||||||||
Portion (a) | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Foreign currency forward contracts | $ | (195 | ) | Net revenue | $ | (147 | ) | Other income, net | $ | (19 | ) | ||||||||||||||
Foreign currency forward contracts | — | Cost of revenue | (1 | ) | Other income, net | — | |||||||||||||||||||
Foreign currency forward contracts | — | Operating expenses | (23 | ) | Other income, net | — | |||||||||||||||||||
Total | $ | (195 | ) | $ | (171 | ) | $ | (19 | ) | ||||||||||||||||
Derivatives Designated as Hedging Instruments | Three Months Ended March 30, 2014 | ||||||||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) | Location of | Amount of Gain (Loss) Recognized in | |||||||||||||||||||||
Recognized in | Gain (Loss) | Reclassified | Gain (Loss) | Income and | |||||||||||||||||||||
OCI - | Reclassified from OCI | from | Recognized in | Excluded from | |||||||||||||||||||||
Effective | into Income - Effective | OCI into | Income and | Effectiveness Testing | |||||||||||||||||||||
Portion (a) | Portion | Income - | Excluded from | ||||||||||||||||||||||
Effective | Effectiveness Testing | ||||||||||||||||||||||||
Portion (a) | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Foreign currency forward contracts | $ | (564 | ) | Net revenue | $ | (425 | ) | Other income, net | $ | (27 | ) | ||||||||||||||
Foreign currency forward contracts | — | Cost of revenue | 2 | Other income, net | — | ||||||||||||||||||||
Foreign currency forward contracts | — | Operating expenses | 64 | Other income, net | — | ||||||||||||||||||||
Total | $ | (564 | ) | $ | (359 | ) | $ | (27 | ) | ||||||||||||||||
Schedule Of Derivatives Not Designated As Hedging Instruments | The effects of the Company’s non-designated hedged included in other income, net in the unaudited condensed consolidated statements of operations for the three months ended March 29, 2015 and March 30, 2014 are as follows (in thousands): | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gains (Losses) | Amount of Gains (Losses) | |||||||||||||||||||||||
Recognized in Income on Derivative | Recognized in Income | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended March 30, 2014 | ||||||||||||||||||||||||
29-Mar-15 | |||||||||||||||||||||||||
Foreign currency forward contracts | Other income (expense), net | $ | 3,843 | $ | (766 | ) | |||||||||||||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule Of Net Income Per Share | Net income per share for the three months ended March 29, 2015 and March 30, 2014 are as follows (in thousands, except per share data): | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Net income | $ | 8,011 | $ | 14,411 | ||||
Denominator: | ||||||||
Weighted average common shares - basic | 34,678 | 36,630 | ||||||
Potentially dilutive common share equivalent | 607 | 675 | ||||||
Weighted average common shares - dilutive | 35,285 | 37,305 | ||||||
Basic net income per share | $ | 0.23 | $ | 0.39 | ||||
Diluted net income per share | $ | 0.23 | $ | 0.39 | ||||
Anti-dilutive employee stock-based awards, excluded | 2,368 | 2,568 | ||||||
Commitments_And_Contingencies_1
Commitments And Contingencies Product Warranties (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | Warranty Obligations | |||||||
Changes in the Company’s warranty obligation, which is included in other accrued liabilities in the unaudited condensed consolidated balance sheets, are as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Balance as of beginning of the period | $ | 44,888 | $ | 48,754 | ||||
Provision for warranty obligation made during the period | 16,255 | 14,158 | ||||||
Settlements made during the period | (18,266 | ) | (17,509 | ) | ||||
Balance at end of period | $ | 42,877 | $ | 45,403 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Schedule Of Accumulated Other Comprehensive Income | The following table sets forth the changes in accumulated other comprehensive income ("AOCI") by component, net of tax, for the three months ended March 29, 2015 (in thousands): | ||||||||||||
Gains and losses on available for sale securities | Gains and losses on derivatives | Total | |||||||||||
Beginning balance as of December 31, 2014 | $ | (5 | ) | $ | 43 | $ | 38 | ||||||
Other comprehensive income (loss) before reclassifications | 6 | (195 | ) | (189 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 171 | 171 | ||||||||||
Net current period other comprehensive income (loss) | 6 | (24 | ) | (18 | ) | ||||||||
Ending balance as of March 29, 2015 | $ | 1 | $ | 19 | $ | 20 | |||||||
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The following tables provide details about significant amounts reclassified out of each component of AOCI for the three months ended March 29, 2015 and March 30, 2014 (in thousands): | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | Three Months Ended March 29, 2015 | Three Months Ended March 30, 2014 | |||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Statement of Operations | Amount Reclassified from AOCI | Affected Line Item in the Statement of Operations | ||||||||||
Gains and losses on cash flow hedge: | |||||||||||||
Foreign currency forward contracts | $ | (147 | ) | Net revenue | $ | (425 | ) | Net revenue | |||||
Foreign currency forward contracts | (1 | ) | Cost of revenue | 2 | Cost of revenue | ||||||||
Foreign currency forward contracts | (23 | ) | Operating expenses | 64 | Operating expenses | ||||||||
(171 | ) | Total before tax | (359 | ) | Total before tax | ||||||||
— | Tax expense (1) | — | Tax expense (1) | ||||||||||
$ | (171 | ) | Total, net of tax | $ | (359 | ) | Total, net of tax | ||||||
-1 | Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Employee Benefits and Share-based Compensation [Abstract] | ||||||||
Schedule Of Stock Option Activity | Option Activity | |||||||
Stock option activity during the three months ended March 29, 2015 was as follows: | ||||||||
Number of shares | Weighted Average Exercise Price Per Share | |||||||
(in thousands) | (in dollars) | |||||||
Outstanding at December 31, 2014 | 3,939 | $ | 30.58 | |||||
Granted | 7 | 33.77 | ||||||
Exercised | (130 | ) | 23.88 | |||||
Cancelled | (100 | ) | 33.14 | |||||
Expired | (45 | ) | 34.68 | |||||
Outstanding at March 29, 2015 | 3,671 | $ | 30.71 | |||||
Schedule Of RSU Activity | RSU Activity | |||||||
RSU activity during the three months ended March 29, 2015 was as follows: | ||||||||
Number of shares | Weighted Average Grant Date Fair Value Per Share | |||||||
(in thousands) | (in dollars) | |||||||
Outstanding at December 31, 2014 | 858 | $ | 30.68 | |||||
RSUs granted | 21 | 33.77 | ||||||
RSUs vested | (19 | ) | 30.57 | |||||
RSUs cancelled | (64 | ) | 31.6 | |||||
Outstanding at March 29, 2015 | 796 | $ | 31.15 | |||||
Schedule Of Valuation And Expense Information | The table below sets forth the weighted average assumptions used to estimate the fair value of option grants during the three months ended March 29, 2015. There were no option grants in the three months ended March 30, 2014. | |||||||
Three Months Ended | ||||||||
March 29, | 30-Mar-14 | |||||||
2015 | ||||||||
Expected life (in years) | 4.4 | N/A | ||||||
Risk-free interest rate | 1.06 | % | N/A | |||||
Expected volatility | 39.9 | % | N/A | |||||
Dividend yield | — | — | ||||||
Schedule Of Total Stock-Based Compensation Expense Resulting From Stock Options, Restricted Stock Awards, And The Employee Stock Purchase Plan | The following table sets forth the stock-based compensation expense resulting from stock options, RSUs and the ESPP included in the Company’s unaudited condensed consolidated statements of operations (in thousands): | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Cost of revenue | $ | 496 | $ | 471 | ||||
Research and development | 845 | 1,396 | ||||||
Sales and marketing | 1,393 | 1,949 | ||||||
General and administrative | 1,614 | 1,314 | ||||||
Total stock-based compensation | $ | 4,348 | $ | 5,130 | ||||
Segment_Information_and_Operat1
Segment Information and Operations By Geographic Area (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule Of Reportable Segment And Reconciliation Of Segment Contribution Income To Income Before Income Taxes | Financial information for each reportable segment and a reconciliation of segment contribution income to income before income taxes is as follows (in thousands, except percentage data): | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
Net revenue: | ||||||||
Retail | $ | 120,957 | $ | 118,232 | ||||
Commercial | 72,731 | 78,863 | ||||||
Service provider | 115,469 | 152,296 | ||||||
Total net revenue | 309,157 | 349,391 | ||||||
Contribution income: | ||||||||
Retail | $ | 16,319 | $ | 14,683 | ||||
Retail contribution margin | 13.5 | % | 12.4 | % | ||||
Commercial | 16,243 | 19,540 | ||||||
Commercial contribution margin | 22.3 | % | 24.8 | % | ||||
Service Provider | 8,758 | 13,519 | ||||||
Service Provider contribution margin | 7.6 | % | 8.9 | % | ||||
Total segment contribution income | 41,320 | 47,742 | ||||||
Corporate and unallocated costs | (12,966 | ) | (13,756 | ) | ||||
Amortization of intangibles (1) | (4,396 | ) | (4,390 | ) | ||||
Stock-based compensation expense | (4,348 | ) | (5,130 | ) | ||||
Restructuring and other charges | (4,394 | ) | (842 | ) | ||||
Acquisition-related expense | — | (8 | ) | |||||
Losses on inventory commitments due to restructuring | (407 | ) | — | |||||
Litigation reserves, net | 2,690 | (117 | ) | |||||
Interest income | 52 | 57 | ||||||
Other income (expense), net | 475 | (108 | ) | |||||
Income before income taxes | $ | 18,026 | $ | 23,448 | ||||
________________________________ | ||||||||
-1 | Amount excludes amortization expense related to patents included in cost of revenue. | |||||||
Schedule Of Net Revenue By Geography Periods | The following table shows net revenue by geography for the periods indicated (in thousands): | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
2015 | 2014 | |||||||
United States (U.S.) | $ | 170,592 | $ | 190,276 | ||||
Americas (excluding U.S.) | 3,194 | 4,503 | ||||||
United Kingdom (U.K.) | 31,365 | 41,200 | ||||||
EMEA (excluding U.K.) | 57,744 | 65,593 | ||||||
APAC | 46,262 | 47,819 | ||||||
Total net revenue | $ | 309,157 | $ | 349,391 | ||||
Schedule Of Long-Lived Asset By Geographic Areas | Property and equipment by geographic location are as follows (in thousands): | |||||||
As of | ||||||||
March 29, | December 31, | |||||||
2015 | 2014 | |||||||
United States | $ | 11,713 | $ | 12,453 | ||||
Canada | 4,411 | 4,375 | ||||||
EMEA | 576 | 657 | ||||||
China | 9,651 | 10,786 | ||||||
APAC (excluding China) | 1,498 | 1,423 | ||||||
$ | 27,849 | $ | 29,694 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value, Assets Measured On Recurring Basis | ||||||||||||||||
As of March 29, 2015 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Cash equivalents—money-market funds | $ | 19,974 | $ | 19,974 | $ | — | $ | — | ||||||||
Available-for-sale securities—U.S. treasuries (1) | 99,945 | 99,945 | — | — | ||||||||||||
Available-for-sale securities—certificates of deposit (1) | 150 | 150 | — | — | ||||||||||||
Trading securities—mutual funds (1) | 909 | 909 | — | — | ||||||||||||
Foreign currency forward contracts (2) | 2,734 | — | 2,734 | — | ||||||||||||
Total assets measured at fair value | $ | 123,712 | $ | 120,978 | $ | 2,734 | $ | — | ||||||||
-1 | Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
-2 | Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Cash equivalents—money-market funds | $ | 4,408 | $ | 4,408 | $ | — | $ | — | ||||||||
Available-for-sale securities—U.S. treasuries (1) | 114,935 | 114,935 | — | — | ||||||||||||
Available-for-sale securities—certificates of deposit (1) | 158 | 158 | — | — | ||||||||||||
Trading securities—mutual funds (1) | 802 | 802 | — | — | ||||||||||||
Foreign currency forward contracts (2) | 2,416 | — | 2,416 | — | ||||||||||||
Total assets measured at fair value | $ | 122,719 | $ | 120,303 | $ | 2,416 | $ | — | ||||||||
-1 | Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
-2 | Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
Fair Value, Liabilities Measured On Recurring Basis | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Foreign currency forward contracts (3) | $ | 447 | $ | — | $ | 447 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 447 | $ | — | $ | 447 | $ | — | ||||||||
-3 | Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. | |||||||||||||||
As of March 29, 2015 | ||||||||||||||||
Total | Quoted market | Significant | Significant | |||||||||||||
prices in active | other | unobservable | ||||||||||||||
markets | observable | inputs | ||||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||||
(Level 2) | ||||||||||||||||
Foreign currency forward contracts (3) | $ | 389 | $ | — | $ | 389 | $ | — | ||||||||
Total liabilities measured at fair value | $ | 389 | $ | — | $ | 389 | $ | — | ||||||||
-3 | Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. |
Restructuring_and_Other_Charge1
Restructuring and Other Charges (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||
Restructuring and Other Charges [Abstract] | ||||||||||||||||||||
Restructuring and other charges [Table Text Block] | ||||||||||||||||||||
Accrued Restructuring and Other Charges at December 31, 2014 | Additions | Cash Payments | Adjustments | Accrued Restructuring and Other Charges at March 29, 2015 | ||||||||||||||||
Restructuring | ||||||||||||||||||||
Employee termination charges | $ | 316 | $ | 3,941 | $ | (2,029 | ) | $ | — | $ | 2,228 | |||||||||
Lease contract termination and other charges | $ | — | $ | 453 | $ | (119 | ) | $ | (49 | ) | $ | 285 | ||||||||
Total Restructuring and other charges | $ | 316 | $ | 4,394 | $ | (2,148 | ) | $ | (49 | ) | $ | 2,513 | ||||||||
In the second fiscal quarter of 2015, we expect to incur additional restructuring and other charges of between approximately $1.0 million and $2.0 million as we continue to execute on our plan to reduce the cost structure of the service provider business unit and supporting functions to align with the reduced revenue outlook and to concentrate resources on LTE and long-term and profitable accounts. |
Balance_Sheet_Components_Narra
Balance Sheet Components (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Balance Sheet Components [Line Items] | ||
Amortization expense | $4.50 | $4.50 |
Minimum [Member] | ||
Balance Sheet Components [Line Items] | ||
Available-for-sale Securities, Maturity Period ( in months) | 3 months | |
Maximum [Member] | ||
Balance Sheet Components [Line Items] | ||
Available-for-sale Securities, Maturity Period ( in months) | 12 months |
Balance_Sheet_Components_Sched
Balance Sheet Components (Schedule Of Available-For-Sale Short-Term) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $100,094 | $115,102 |
Unrealized Gain | 8 | 6 |
Unrealized Loss | -7 | -15 |
Estimated Fair Value | 100,095 | 115,093 |
U.S. Treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 99,944 | 114,944 |
Unrealized Gain | 8 | 6 |
Unrealized Loss | -7 | -15 |
Estimated Fair Value | 99,945 | 114,935 |
Certificates Of Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 150 | 158 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | $150 | $158 |
Balance_Sheet_Components_Sched1
Balance Sheet Components (Schedule Of Accounts Receivable And Related Allowances) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Gross accounts receivable | $275,062 | $296,239 |
Allowance for doubtful accounts | -1,255 | -1,255 |
Allowance for sales returns | -16,317 | -17,489 |
Allowance for price protection | -2,745 | -1,806 |
Total allowances | -20,317 | -20,550 |
Accounts receivable, net | $254,745 | $275,689 |
Balance_Sheet_Components_Sched2
Balance Sheet Components (Schedule Of Inventories) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $3,402 | $3,625 |
Work in process | 1 | 8 |
Finished Goods | 197,545 | 219,250 |
Total | $200,948 | $222,883 |
Balance_Sheet_Components_Sched3
Balance Sheet Components (Schedule Of Property And Equipment, Net) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Total property and equipment, gross | $121,248 | $118,587 |
Accumulated depreciation and amortization | -93,399 | -88,893 |
Total property and equipment, net | 27,849 | 29,694 |
Computer Equipment [Member] | ||
Total property and equipment, gross | 9,984 | 9,779 |
Furniture, Fixtures And Leasehold Improvements [Member] | ||
Total property and equipment, gross | 19,772 | 19,379 |
Software [Member] | ||
Total property and equipment, gross | 29,395 | 29,294 |
Machinery And Equipment [Member] | ||
Total property and equipment, gross | $62,097 | $60,135 |
Balance_Sheet_Components_Balan
Balance Sheet Components Balance Sheet Components - Property and Equipment, Other Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $4.80 | $4.30 |
Balance_Sheet_Components_Sched4
Balance Sheet Components (Schedule Of Intangibles, Net) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Intangible Assets [Line Items] | ||
Gross | $128,144 | $128,144 |
Accumulated Amortization | -66,389 | -61,914 |
Finite-Lived Intangible Assets, Net | 61,755 | 66,230 |
Technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross | 61,099 | 61,099 |
Accumulated Amortization | -41,781 | -39,341 |
Finite-Lived Intangible Assets, Net | 19,318 | 21,758 |
Customer Contracts And Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross | 56,500 | 56,500 |
Accumulated Amortization | -17,976 | -16,205 |
Finite-Lived Intangible Assets, Net | 38,524 | 40,295 |
Other [Member] | ||
Intangible Assets [Line Items] | ||
Gross | 10,545 | 10,545 |
Accumulated Amortization | -6,632 | -6,368 |
Finite-Lived Intangible Assets, Net | $3,913 | $4,177 |
Balance_Sheet_Components_Sched5
Balance Sheet Components (Schedule Of Estimated Amortization Expense Related To Intangibles) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
2015 (remaining nine months) | $12,808 | |
2016 | 16,921 | |
2017 | 11,386 | |
2018 | 7,871 | |
2019 | 6,028 | |
Thereafter | 6,741 | |
Total expected amortization expense | $61,755 | $66,230 |
Balance_Sheet_Components_Sched6
Balance Sheet Components Schedule of Other Non-Current Assets (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Non-current deferred income taxes | $39,418 | $38,696 |
Cost method investment | 1,322 | 1,322 |
Other | 7,913 | 8,059 |
Total other non-current assets | $48,653 | $48,077 |
Balance_Sheet_Components_Sched7
Balance Sheet Components (Schedule Of Other Accrued Liabilities) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Sales and marketing programs | $45,203 | $54,582 |
Warranty obligation | 42,877 | 44,888 |
Freight | 5,788 | 6,827 |
Other | 28,300 | 37,445 |
Total other accrued liabilities | $122,168 | $143,742 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Derivative [Line Items] | ||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | $0 | $0 |
Foreign Currency Forward Contracts [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract ( in months) | 6 months | |
Foreign Currency Forward Contracts [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Approximate number of derivatives per quarter (in derivatives) | 5 | |
Cash flow hedge | 7,000,000 | |
Number of months taken by the company to reclass the amounts recorded in other comprehensive income to earnings (in months) | 12 months | |
Foreign Exchange Contract [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Discontinuation of cash flow hedge | 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 | |
Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract ( in months) | 3 months | |
Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract ( in months) | 5 months | |
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Approximate number of derivatives per quarter (in derivatives) | 15 | |
Cash flow hedge | $2,000,000 | |
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract ( in months) | 1 month | |
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract ( in months) | 5 months |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Schedule Of Fair Values Of The Company's Derivative Instruments And The Line Items On The Consolidated Balance Sheets) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | $2,734 | $2,416 |
Gross Amounts of Recognized Liabilities | 389 | 447 |
Prepaid Expenses And Other Current Assets [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | 2,724 | 2,416 |
Prepaid Expenses And Other Current Assets [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | 10 | 0 |
Other Accrued Liabilities [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | 389 | 409 |
Other Accrued Liabilities [Member] | Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | $0 | $38 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments Scheduel of Offsetting of Derivative Assets (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Offsetting of Derivative Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $2,734 | $2,416 |
Gross Amounts Offset in the balance sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 2,734 | 2,416 |
Financial Instruments | -389 | -447 |
Cash Collateral Pledged | 0 | 0 |
Net Amounts | 2,345 | 1,969 |
Barclays [Member] | ||
Offsetting of Derivative Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 1,188 | 319 |
Gross Amounts Offset in the balance sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 1,188 | 319 |
Financial Instruments | -161 | -16 |
Cash Collateral Pledged | 0 | 0 |
Net Amounts | 1,027 | 303 |
J.P. Morgan Chase [Member] | ||
Offsetting of Derivative Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 227 | |
Gross Amounts Offset in the balance sheet | 0 | |
Net Amounts of Assets Presented in the Balance Sheet | 227 | |
Financial Instruments | -1 | |
Cash Collateral Pledged | 0 | |
Net Amounts | 226 | |
Wells Fargo Bank [Member] | ||
Offsetting of Derivative Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 1,319 | 2,097 |
Gross Amounts Offset in the balance sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 1,319 | 2,097 |
Financial Instruments | -227 | -431 |
Cash Collateral Pledged | 0 | 0 |
Net Amounts | $1,092 | $1,666 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments Schedule of Offsetting of Derivate Liabilities (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $389 | $447 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 389 | 447 |
Financial Instruments | -389 | -447 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Barclays [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 161 | 16 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 161 | 16 |
Financial Instruments | -161 | -16 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
J.P. Morgan Chase [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 1 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Balance Sheet | 1 | |
Financial Instruments | -1 | |
Cash Collateral Pledged | 0 | |
Net Amount | 0 | |
Wells Fargo Bank [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 227 | 431 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 227 | 431 |
Financial Instruments | -227 | -431 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $0 | $0 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Schedule Of Company's Derivative Instruments On Other Comprehensive Income And The Consolidated Statement Of Operations) (Details) (Derivatives Designated As Hedging Instruments [Member], Foreign Currency Forward Contracts [Member], USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI-Effective Portion | ($195) | [1] | ($564) | [1] |
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | -171 | [1] | -359 | [1] |
Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing | -19 | -27 | ||
Other Income (expense), Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income and Excluded from Effectiveness Testing | -19 | -27 | ||
Net Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | -147 | [1] | -425 | [1] |
Cost Of Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | -1 | [1] | 2 | [1] |
Operating Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | ($23) | [1] | $64 | [1] |
[1] | Refer to Note 8, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives. |
Derivative_Financial_Instrumen7
Derivative Financial Instruments (Schedule Of Derivatives Not Designated As Hedging Instruments) (Details) (Other Income (expense), Net [Member], Foreign Currency Forward Contracts [Member], Derivatives Not Designated As Hedging Instruments [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Other Income (expense), Net [Member] | Foreign Currency Forward Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains or (Losses) Recognized in Income on Derivative | $3,843 | ($766) |
Net_Income_Per_Share_Schedule_
Net Income Per Share (Schedule Of Net Income Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $8,011 | $14,411 |
Weighted average shares outstanding: Basic (in shares) | 34,678 | 36,630 |
Potentially dilutive common share equivalent (in shares) | 607 | 675 |
Weighted average common shares outstanding: dilutive (in shares) | 35,285 | 37,305 |
Basic net income per share (in dollars per share) | $0.23 | $0.39 |
Diluted net income per share (in dollars per share) | $0.23 | $0.39 |
Anti-dilutive employee stock-based awards, excluded (in shares) | 2,368 | 2,568 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $10,015,000 | $9,037,000 |
Provision for income taxes (in percentage) | 55.60% | 38.50% |
Possible reduction in liabilities for uncertain tax positions | $1,100,000 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | ||||
Mar. 29, 2015 | Jun. 30, 2013 | Dec. 31, 2014 | Sep. 14, 2010 | Dec. 31, 2013 | |
patent | patents | ||||
claims | |||||
Purchase Obligation [Line Items] | |||||
Lease Expiration Date | 31-Dec-26 | ||||
Purchase Commitment, Remaining Minimum Amount Committed | $135,000,000 | ||||
Number of days for non-cancellation of purchase obligations prior to expected shipment date | 30 days | ||||
Loss Contingencies [Line Items] | |||||
Continued vesting period after termination without cause (in years) | 1 year | ||||
Number of exiting cases and procedings that the Company currently believes are liking to have a material adverse effect on its financial position | 0 | ||||
Number of exiting cases and proceedings that the Company currently believes are liking to have a material adverse effect on its financial position | 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 | ||||
Number of Patents Company Is Accused Of Infringing | 8 | ||||
Number of Remaining Patents Company is Accused of Infringing | 5 | ||||
Reasonable and nondiscriminatory (RAND) royalty rate (USD per unit) | 0.15 | ||||
Liability for Director and Officer Indemnification Agreements | 0 | ||||
Liability For Customers, Distributors, and Resellers Indemnification Agreements | 0 | ||||
Foregone reasonable and nondiscriminatory (RAND) royalty rate | 0.15 | ||||
Chief Executive Officer [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of weeks for which salary is payable upon termination of employment without cause (in days) | 365 days | ||||
Number of years after change of control to trigger full accelerated vest of unvested portion of stock options (in years) | 1 year | ||||
Senior Vice President Of Worldwide Operations And Support [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of weeks for which salary is payable upon termination of employment without cause (in days) | 273 days | ||||
Other Key Executives [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of weeks for which salary is payable upon termination of employment without cause (in days) | 182 days | ||||
Maximum number of years covered by accelerated vest for other key executives if term without cause is within one year of change in control (in years) | 2 years | ||||
Ericsson v. NETGEAR [Member] | |||||
Loss Contingencies [Line Items] | |||||
Foregone colleting verdict amount (in USD) | 3,600,000 | 3,555,000 | |||
Foregone collecting pre-judgment interest ( in USD) | 224,141 | ||||
Foregone collecting pre judgment interest (USD per day) | 336 | ||||
Foregone Collecting Costs (in USD) | 41,667 | ||||
Ericsson v. NETGEAR [Member] | D-Link [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | 435,000 | ||||
Ericsson v. NETGEAR [Member] | NETGEAR [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | 3,555,000 | ||||
Ericsson v. NETGEAR [Member] | Toshiba [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | 2,445,000 | ||||
Ericsson v. NETGEAR [Member] | Belkin [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | 600,000 | ||||
Ericsson v. NETGEAR [Member] | Acer Gateway [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | 1,170,000 | ||||
Ericsson v. NETGEAR [Member] | Dell [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | $1,920,000 | ||||
46 To 60 Days [Member] | |||||
Purchase Obligation [Line Items] | |||||
Percentage of cancelable orders. | 50.00% | ||||
31 To 45 Days [Member] | |||||
Purchase Obligation [Line Items] | |||||
Percentage of cancelable orders. | 30.00% | ||||
Minimum [Member] | 46 To 60 Days [Member] | |||||
Purchase Obligation [Line Items] | |||||
Required Notice Period Prior To The Expected Shipment Date | 46 days | ||||
Minimum [Member] | 31 To 45 Days [Member] | |||||
Purchase Obligation [Line Items] | |||||
Required Notice Period Prior To The Expected Shipment Date | 31 days | ||||
Maximum [Member] | 46 To 60 Days [Member] | |||||
Purchase Obligation [Line Items] | |||||
Required Notice Period Prior To The Expected Shipment Date | 60 days | ||||
Maximum [Member] | 31 To 45 Days [Member] | |||||
Purchase Obligation [Line Items] | |||||
Required Notice Period Prior To The Expected Shipment Date | 45 days |
Commitments_And_Contingencies_3
Commitments And Contingencies Schedule of Product Warranty Liability (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance as of beginning of the period | $44,888 | $48,754 |
Provision for warranty liability made during the period | 16,255 | 14,158 |
Settlements made during the period | -18,266 | -17,509 |
Balance at end of period | $42,877 | $45,403 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Oct. 17, 2014 | Oct. 21, 2008 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 3,000,000 | 6,000,000 | ||
Stock Repurchased and Retired During Period, Shares | 300,000 | 500,000 | ||
Costs for repurchase of common stock | $8,572 | $15,908 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,700,000 | |||
Shares Repurchased And Retired Related to Net of Issuances Shares, Shares | 7,000 | 1,000 | ||
Payments Related to Tax Withholding for net share settlement | 200 | 33 | ||
Repurchase plan authorized in Oct 2008 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Costs for repurchase of common stock | 15,900 | |||
Repurchase plan authorized in Oct 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Costs for repurchase of common stock | $8,300 |
Stockholders_Equity_Schedule_O
Stockholders' Equity (Schedule Of Changes in Accumulated Other Comprehensive Income by Component Net of Tax) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2015 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $38 |
Other comprehensive income (loss) before reclassifications | -189 |
Amounts reclassified from accumulated other comprehensive income | 171 |
Net current period other comprehensive income (loss) | -18 |
Ending balance | 20 |
Gain and losses on available for for securities [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | -5 |
Other comprehensive income (loss) before reclassifications | 6 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income (loss) | 6 |
Ending balance | 1 |
Gains and losses on derivatives [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 43 |
Other comprehensive income (loss) before reclassifications | -195 |
Amounts reclassified from accumulated other comprehensive income | 171 |
Net current period other comprehensive income (loss) | -24 |
Ending balance | $19 |
Recovered_Sheet1
Stockholders' Equity (Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax | $4 | $3 | ||
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | -171 | [1] | -359 | [1] |
Other Comprehensive Income (Loss), Tax | 0 | [2] | 0 | [2] |
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Net Revenue [Member] | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | -147 | [1] | -425 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Cost Of Revenue [Member] | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | -1 | [1] | 2 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | Operating Expenses [Member] | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain or (Loss) Reclassified from OCI into Income-Effective Portion | ($23) | [1] | $64 | [1] |
[1] | Refer to Note 8, Stockholders' Equity, which summarizes the accumulated other comprehensive income activity related to derivatives. | |||
[2] | Under our tax structure all hedging gains and losses from derivative contracts are ultimately borne by a legal entity in a jurisdiction with no income tax |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted, vesting term (in years) | 4 years |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation | 8.1 |
Weighted-average period of recognition of stock based compensation (in days) | 821 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation | 14.5 |
Weighted-average period of recognition of stock based compensation (in days) | 891 days |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved for future grant (in shares) | 0.2 |
Maximum Percentage of compensation contributed by employees (in percentage) | 10.00% |
Purchase percentage of stock at fair market value (in percentage) | 85.00% |
2006 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved for future grant (in shares) | 2.2 |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans (Schedule Of Stock Option Activity) (Details) (Stock Options [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares, Beginning Balance | 3,939 |
Number of Shares, Granted | 7 |
Number of Shares, Exercised | -130 |
Number of shares, Cancelled | -100 |
Number of shares, Expired | -45 |
Number of Shares, Ending Balance | 3,671 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $30.58 |
Granted, Weighted Average Exercise Price (in dollars per share) | $33.77 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $23.88 |
Cancelled, Weighted Average Exercise Price (in dollars per share) | $33.14 |
Expired, Weighted Average Exercise Price (in dollars per share) | $34.68 |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $30.71 |
Employee_Benefit_Plans_Schedul1
Employee Benefit Plans (Schedule Of RSU Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Number of Shares, Beginning Balance | 858 |
Number of Shares, Granted | 21 |
Number of Shares, Vested | -19 |
Number of Shares, Cancelled | -64 |
Number of Shares, Ending Balance | 796 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning Balance (in dollars per share) | $30.68 |
Granted (in dollars per share) | $33.77 |
Vested (in dollars per share) | $30.57 |
Cancelled (in dollars per share) | $31.60 |
Ending Balance (in dollars per share) | $31.15 |
Employee_Benefit_Plans_Schedul2
Employee Benefit Plans (Schedule Of Valuation And Expense Information) (Details) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Term (in days) | 4 years 4 months 24 days | |
Risk Free Interest Rate | 1.06% | |
Expected Volatility Rate | 39.90% | |
Dividend yield (in percentage) | 0.00% |
Employee_Benefit_Plans_Schedul3
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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $4,348 | $5,130 |
Cost Of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 496 | 471 |
Research And Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 845 | 1,396 |
Sales And Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,393 | 1,949 |
General And Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $1,614 | $1,314 |
Segment_Information_and_Operat2
Segment Information and Operations By Geographic Area(Narrative) (Details) | 3 Months Ended |
Mar. 29, 2015 | |
business_unit | |
Number of reportable segments (in segments) | 3 |
Segment_Information_and_Operat3
Segment Information and Operations By Geographic Area (Schedule Of Reportable Segment And Reconciliation Of Segment Contribution Income To Income Before Income Taxes) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $309,157 | $349,391 | ||
Total segment contribution income | 41,320 | 47,742 | ||
Corporate and unallocated costs | -12,966 | -13,756 | ||
Amortization of intangible assets | -4,396 | [1] | -4,390 | [1] |
Stock-based compensation expense | -4,348 | -5,130 | ||
Restructuring and other charges | -4,394 | -842 | ||
Acquisition-related expense | 0 | -8 | ||
Losses on inventory commitments due to restructuring | 407 | 0 | ||
Litigation reserves, net | 2,690 | -117 | ||
Interest income | 52 | 57 | ||
Other income (expense), net | 475 | -108 | ||
Income before income taxes | 18,026 | 23,448 | ||
Retail [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 120,957 | 118,232 | ||
Total segment contribution income | 16,319 | 14,683 | ||
Segment contribution margin (in percentage) | 13.50% | 12.40% | ||
Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 72,731 | 78,863 | ||
Total segment contribution income | 16,243 | 19,540 | ||
Segment contribution margin (in percentage) | 22.30% | 24.80% | ||
Service Provider [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 115,469 | 152,296 | ||
Total segment contribution income | $8,758 | $13,519 | ||
Segment contribution margin (in percentage) | 7.60% | 8.90% | ||
[1] | Amount excludes amortization expense related to patents included in cost of revenue. |
Segment_Information_and_Operat4
Segment Information and Operations By Geographic Area (Schedule Of Net Revenue By Geography Periods) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Segment Reporting Information [Line Items] | ||
Total net revenues | $309,157 | $349,391 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 170,592 | 190,276 |
Americas Excluding United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 3,194 | 4,503 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 31,365 | 41,200 |
EMEA Excluding United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 57,744 | 65,593 |
APAC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | $46,262 | $47,819 |
Segment_Information_and_Operat5
Segment Information and Operations By Geographic Area (Schedule Of Long-Lived Asset By Geographic Areas) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $27,849 | $29,694 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 11,713 | 12,453 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,411 | 4,375 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 576 | 657 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 9,651 | 10,786 |
APAC Excluding China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $1,498 | $1,423 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary Of Valuation Of Company's Financial Instruments By Various Levels) (Details) (USD $) | Mar. 29, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | $123,712 | $122,719 | ||
Liabilities, Fair value | 389 | 447 | ||
Quoted Market Prices In Active Markets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 120,978 | 120,303 | ||
Liabilities, Fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 2,734 | 2,416 | ||
Liabilities, Fair value | 389 | 447 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | ||
Liabilities, Fair value | 0 | 0 | ||
Foreign Currency Forward Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 2,734 | [1] | 2,416 | [1] |
Liabilities, Fair value | 389 | [2] | 447 | [2] |
Foreign Currency Forward Contracts [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | [1] | 0 | [1] |
Liabilities, Fair value | 0 | [2] | 0 | [2] |
Foreign Currency Forward Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 2,734 | [1] | 2,416 | [1] |
Liabilities, Fair value | 389 | [2] | 447 | [2] |
Foreign Currency Forward Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | [1] | 0 | [1] |
Liabilities, Fair value | 0 | [2] | 0 | [2] |
Money Market Funds [Member] | Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 19,974 | 4,408 | ||
Money Market Funds [Member] | Cash Equivalents [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 19,974 | 4,408 | ||
Money Market Funds [Member] | Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | ||
Money Market Funds [Member] | Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | 0 | ||
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 99,945 | [3] | 114,935 | [3] |
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 99,945 | [3] | 114,935 | [3] |
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | [3] | 0 | [3] |
U.S. Treasuries [Member] | Available-For-Sale Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | [3] | 0 | [3] |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 150 | [3] | 158 | [3] |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 150 | [3] | 158 | [3] |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | [3] | 0 | [3] |
Certificates Of Deposits [Member] | Available-For-Sale Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | [3] | 0 | [3] |
Mutual Funds [Member] | Trading Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 909 | [3] | 802 | [3] |
Mutual Funds [Member] | Trading Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 909 | [3] | 802 | [3] |
Mutual Funds [Member] | Trading Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | 0 | [3] | 0 | [3] |
Mutual Funds [Member] | Trading Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair value | $0 | [3] | $0 | [3] |
[1] | Included in prepaid expenses and other current assets on the Company’s unaudited condensed consolidated balance sheet | |||
[2] | Included in other accrued liabilities on the Company’s unaudited condensed consolidated balance sheet. | |||
[3] | Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. |
Shipping_and_Handling_Fees_and1
Shipping and Handling Fees and Costs (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Shipping And Handling Fees And Costs [Abstract] | ||
Shipping, Handling and Transportation Costs | $3.20 | $2.80 |
Restructuring_and_Other_Charge2
Restructuring and Other Charges (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $4,394,000 | $842,000 |
Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | 2,000,000 | |
Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | $1,000,000 |
Restructuring_and_Other_Charge3
Restructuring and Other Charges Schedule of Restructuring and Other Charges (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Beginning Balance | $316 |
Additions to restructuring | 4,394 |
Payments for Restructuring | -2,148 |
Restructuring Adjustments | 49 |
Restructuring Ending Balance | 2,513 |
Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Beginning Balance | 316 |
Additions to restructuring | 3,941 |
Payments for Restructuring | -2,029 |
Restructuring Adjustments | 0 |
Restructuring Ending Balance | 2,228 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Beginning Balance | 0 |
Additions to restructuring | 453 |
Payments for Restructuring | -119 |
Restructuring Adjustments | -49 |
Restructuring Ending Balance | $285 |