Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

The following table summarizes the impacts of adopting ASC 606 on the Company’s consolidated balance sheets for the fiscal year beginning January 1, 2018 as an adjustment to the opening balances:



	As of		Adjustments			As of
	December 31, 2017		Adjustments			January 1, 2018
	(In thousands)
Assets:
Accounts receivable, net	$	255,118	$	5,286		$	260,404
Inventories	$	162,942	$	(1,991	)	$	160,951
Current assets of discontinued operations	$	243,125	$	450		$	243,575
Total current assets	$	1,015,664	$	3,745		$	1,019,409
Other non-current assets	$	49,471	$	2,904		$	52,375
Non-current assets of discontinued operations	$	41,126	$	1,440		$	42,566
Total assets	$	1,208,564	$	8,089		$	1,216,653
Liabilities:
Accounts payable	$	91,205	$	(108	)	$	91,097
Other accrued liabilities	$	149,821	$	32,110		$	181,931
Deferred revenue	$	21,212	$	(15,855	)	$	5,357
Income taxes payable	$	7,015	$	55		$	7,070
Current liabilities of discontinued operations	$	130,663	$	4,666		$	135,329
Total current liabilities	$	424,436	$	20,868		$	445,304
Other non-current liabilities	$	8,766	$	(35	)	$	8,731
Non-current liabilities of discontinued operations	$	13,333	$	(241	)	$	13,092
Total liabilities	$	478,079	$	20,592		$	498,671
Stockholders’ equity:
Retained earnings	$	128,168	$	(12,503	)	$	115,665

The following table summarizes the impacts of adopting ASC 606 on the Company’s consolidated balance sheets as of December 31, 2018:



	As of December 31, 2018
	As reported			Adjustments			Balance without adoption of ASC 606
	(In thousands)
Assets
Accounts receivable, net	$	303,667		$	(5,776	)	$	297,891
Inventories	$	243,871		$	2,419		$	246,290
Other non-current assets	$	67,433		$	(2,811	)	$	64,622
Liabilities:
Accounts payable	$	139,748		$	67		$	139,815
Other accrued liabilities	$	199,472		$	(32,803	)	$	166,669
Deferred revenue	$	11,086		$	13,795		$	24,881
Income taxes payable	$	2,020		$	4		$	2,024
Other non-current liabilities	$	12,232		$	36		$	12,268
Stockholders’ equity:
Retained losses	$	(166,050	)	$	12,733		$	(153,317	)

The following tables summarize the impacts of adopting ASC 606 on the Company’s consolidated statement of operations for the fiscal year ended December 31, 2018:



	Year Ended December 31, 2018
	As reported			Adjustments			Balance without adoption of ASC 606
	(In thousands)
Net revenue	$	1,058,816		$	2,247		$	1,061,063
Cost of revenue	$	717,118		$	(252	)	$	716,866
Gross profit	$	341,698		$	2,499		$	344,197
Provision for income taxes	$	25,878		$	(2,536	)	$	23,342
Net income from continuing operations	$	17,326		$	5,035		$	22,361
Net loss from discontinued operations, net of tax	$	(35,655	)	$	5,721		$	(29,934	)
Net loss	$	(18,329	)	$	10,756		$	(7,573	)
Net loss attributable to non-controlling interest in discontinued operations	(9,167		)	598			(8,569		)
Net income (loss) attributable to NETGEAR, Inc.	$	(9,162	)	$	10,158		$	996

Schedule of Remaining Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2018:



		1 year		2 years		Greater than 2 years		Total
	(In thousands)
Performance obligations		$	53,945	$	923	$	904	$	55,772

Schedule of Changes in Contract Balances

The following table reflects the changes in contract balances for the fiscal year ended December 31, 2018:



	Balance Sheet Location	December 31, 2018		January 1, 2018 ^(*)		$ change		% change
		(In thousands)
Accounts receivable, net	Accounts receivable, net	$	303,667	$	260,404	$	43,263	16.6	%
Contract liabilities - current	Deferred revenue	$	11,086	5,357		$	5,729	106.9	%
Contract liabilities - non-current	Other non-current liabilities	$	779	$	728	$	51	7.0	%

* Includes the adjustments made upon ASC 606 adoption using the modified retrospective method.

Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel

In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle-East and Africa (“EMEA”); and Asia Pacific ("APAC"). The tables also include reconciliations of the disaggregated revenue by reportable segment. Sales and usage-based taxes are excluded from net revenue.



	Year Ended December 31,
	2018						2017^(*)						2016^(*)
	Connected Home		SMB		Total		Connected Home		SMB		Total		Connected Home		SMB		Total

Geographic regions:
Americas	$	576,476	$	124,217	$	700,693	$	547,314	$	117,775	$	665,089	$	595,606	$	139,374	$	734,980
EMEA	97,979		109,620		207,599		93,438		103,636		197,074		110,941		106,613		217,554
APAC	96,605		53,919		150,524		127,509		49,497		177,006		140,382		50,529		190,911
Total net revenue	$	771,060	$	287,756	$	1,058,816	$	768,261	$	270,908	$	1,039,169	$	846,929	$	296,516	$	1,143,445
Sales channels:
Service provider	$	156,671	$	3,624	$	160,295	$	190,186	$	3,268	$	193,454	$	249,980	$	4,175	$	254,155
Non-service provider	614,389		284,132		898,521		578,075		267,640		845,715		596,949		292,341		889,290
Total net revenue	$	771,060	$	287,756	$	1,058,816	$	768,261	$	270,908	$	1,039,169	$	846,929	$	296,516	$	1,143,445

_________________________

* Prior period amounts have not been adjusted to conform with ASC 606 as the Company adopted ASC 606 under the modified retrospective method.