XML 39 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Information (Tables)
9 Months Ended
Oct. 01, 2017
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:
 
Three Months Ended
 
Nine Months Ended
 
October 1, 2017
 
October 2, 2016*
 
October 1, 2017
 
October 2, 2016*
 
(In thousands, except percentage data)
Net revenue:
 
 
 
 
 
 
 
Arlo
$
110,460

 
$
48,642

 
$
249,904

 
$
111,492

Connected Home
183,099

 
215,116

 
563,365

 
629,880

SMB
61,924

 
74,700

 
196,594

 
218,997

Total net revenue
$
355,483

 
$
338,458

 
$
1,009,863

 
$
960,369

Contribution income (loss):
 
 
 
 
 
 
 
Arlo
$
15,230

 
$
(771
)
 
$
18,723

 
$
(4,212
)
Arlo contribution margin
13.8
%
 
(1.6
)%
 
7.5
%
 
(3.8
)%
Connected Home
$
24,546

 
$
36,330

 
$
81,382

 
$
111,587

Connected Home contribution margin
13.4
%
 
16.9
 %
 
14.4
%
 
17.7
 %
SMB
$
12,583

 
$
20,747

 
$
47,839

 
$
54,988

SMB contribution margin
20.3
%
 
27.8
 %
 
24.3
%
 
25.1
 %
 
 
 
 
 
 
 
 
Total segment contribution income
$
52,359

 
$
56,306

 
$
147,944

 
$
162,363

Corporate and unallocated costs
(18,740
)
 
(17,532
)
 
(53,974
)
 
(50,666
)
Amortization of intangibles (1)
(2,608
)
 
(4,165
)
 
(10,136
)
 
(12,496
)
Stock-based compensation expense
(5,583
)
 
(4,870
)
 
(16,412
)
 
(14,300
)
Restructuring and other charges
(19
)
 
130

 
(78
)
 
(3,859
)
Litigation reserves, net
(15
)
 
(13
)
 
(68
)
 
(58
)
Interest income
501

 
291

 
1,388

 
804

Other income (expense), net
666

 
116

 
1,384

 
(582
)
Income before income taxes
$
26,561

 
$
30,263

 
$
70,048

 
$
81,206

_________________________
(1) 
Amount excludes amortization expense related to patents within purchased intangibles in cost of revenue.
* Prior year financial information for each reportable segment has been recast to conform to the current reportable segment structure effective on January 1, 2017.

Schedule of Service Provider Customers Revenue by Reportable Segments [Table Text Block]
The following table shows net revenue from service provider customers within each of the reportable segments for the periods indicated:
 
Three Months Ended
 
Nine Months Ended
 
October 1, 2017
 
October 2, 2016
 
October 1, 2017
 
October 2, 2016
 
(In thousands)
Arlo
$
5,794

 
$
3,513

 
$
15,743

 
$
14,730

Connected Home
44,631

 
66,042

 
146,309

 
204,250

SMB
1,114

 
1,295

 
2,492

 
3,489

Total service provider net revenue
$
51,539

 
$
70,850

 
$
164,544

 
$
222,469

Schedule Of Net Revenue By Geography
The following table shows net revenue by geography for the periods indicated:
 
 
Three Months Ended
 
Nine Months Ended
 
October 1,
2017
 
October 2,
2016
 
October 1,
2017
 
October 2,
2016
 
(In thousands)
United States (U.S.)
$
235,584

 
$
217,631

 
$
663,096

 
$
610,505

Americas (excluding U.S.)
8,804

 
7,604

 
19,870

 
19,488

EMEA
62,161

 
60,034

 
175,810

 
176,192

APAC
48,934

 
53,189

 
151,087

 
154,184

Total net revenue
$
355,483

 
$
338,458

 
$
1,009,863

 
$
960,369

Schedule Of Long-Lived Asset By Geographic Areas
The Company's property and equipment are located in the following geographic locations:
 
As of
 
October 1,
2017
 
December 31,
2016
 
(In thousands)
United States
$
9,278

 
$
9,542

Canada
1,832

 
2,745

EMEA
172

 
210

China
6,390

 
5,219

APAC (excluding China)
2,556

 
1,757

Total property and equipment, net
$
20,228

 
$
19,473