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Segment Information (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Reportable Segments and Reconciliation of Segment Contribution Income to Income (loss) Before Income Taxes

Financial information for each reportable segment and a reconciliation of segment contribution income to income (loss) before income taxes is as follows:


	Year ended December 31,
(In thousands)	2023			2022			2021
Net Revenue:
Connected Home	$	446,865		$	558,823		$	853,472
NETGEAR for Business		293,975			373,649			314,601
Total net revenue	$	740,840		$	932,472		$	1,168,073

Contribution Income (loss):
Connected Home	$	19,052		$	(8,539	)	$	116,889
Contribution margin		4.3	%		(1.5	)%		13.7	%
NETGEAR for Business	$	58,532		$	75,790		$	62,136
Contribution margin		19.9	%		20.3	%		19.8	%
Total segment contribution income	$	77,584		$	67,251		$	179,025
Corporate and unallocated costs		(87,453	)		(82,888	)		(83,883	)
Amortization of intangibles (1)		(257	)		(514	)		(1,897	)
Stock-based compensation expense		(17,938	)		(17,734	)		(25,995	)
Change in fair value of contingent consideration		—			—			3,003
Goodwill impairment		—			(44,442	)		—
Intangibles impairment		(1,071	)		—			—
Restructuring and other charges		(3,962	)		(4,577	)		(3,341	)
Litigation reserves, net		(178	)		(20	)		(315	)
Other income (expenses), net (2)		14,139			902			(1,093	)
Income (loss) before income taxes	$	(19,136	)	$	(82,022	)	$	65,504

(1)

Amounts excluded amortization expense related to patents within purchased intangibles in cost of revenue.

(2)

Amounts included gain/(loss), net from litigation settlement of $6.0 million for the year ended December 31, 2023, and gain/(loss), net from derivatives not designated as hedging instruments of $0.3 million, $2.7 million and $4.2 million, for the years ended December 31, 2023, 2022 and 2021, respectively.

Schedule of Net Revenue by Geography

The following table shows net revenue by geography:


	Year Ended December 31,
(In thousands)	2023		2022		2021
United States (U.S.)	$	489,968	$	598,649	$	759,865
Americas (excluding U.S.)		14,381		18,562		26,461
EMEA (1)		148,922		179,358		229,829
APAC (1)		87,569		135,903		151,918
Total net revenue	$	740,840	$	932,472	$	1,168,073

_______________________

(1)

No individual country, other than disclosed above, represented more than 10% of the Company’s total net revenue in the periods presented.

Schedule of Long-Lived Asset By Geographic Region

The following table represents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net and operating lease right-of-use assets:


(In thousands)	December 31, 2023		December 31, 2022
United States (U.S.)	$	25,051	$	32,142
Americas (excluding U.S.)		4,782		2,367
EMEA		3,739		3,564
Singapore		6,218		4,032
APAC (excluding Singapore) (1)		5,768		7,988
Total	$	45,558	$	50,093

_______________________

(1)

No individual country, other than disclosed above, represented more than 10% of the Company’s total long-lived assets in the periods presented.