Segment Information (Tables)

9 Months Ended

Sep. 27, 2020

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

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

	Three Months Ended						Nine Months Ended
	September 27, 2020			September 29, 2019			September 27, 2020			September 29, 2019

Net Revenue:
Connected Home	$	316,739		$	190,672		$	711,419		$	527,532
SMB		61,375			75,186			176,710			218,260
Total net revenue	$	378,114		$	265,858		$	888,129		$	745,792

Contribution Income:
Connected Home	$	55,964		$	18,934		$	105,738		$	52,257
Contribution margin		17.7	%		9.9	%		14.9	%		9.9	%
SMB	$	8,721		$	18,750		$	26,573		$	52,855
Contribution margin		14.2	%		24.9	%		15.0	%		24.2	%
Total segment contribution income	$	64,685		$	37,684		$	132,311		$	105,112
Corporate and unallocated costs		(23,293	)		(16,901	)		(61,744	)		(51,609	)
Amortization of intangibles ⁽¹⁾		(1,470	)		(1,520	)		(4,508	)		(5,212	)
Stock-based compensation expense		(7,218	)		(6,986	)		(22,726	)		(20,183	)
Separation expense		—			—			—			(264	)
Change in fair value of contingent consideration		(187	)		(199	)		(276	)		(199	)
Restructuring and other charges		(329	)		77			(1,311	)		(1,146	)
Litigation reserves, net		(22	)		(90	)		(44	)		(100	)
Interest income		98			639			409			2,122
Other income (expense), net		(515	)		(403	)		(4,787	)		425
Income before income taxes	$	31,749		$	12,301		$	37,324		$	28,946

⁽¹⁾	Amount excludes amortization expense related to patents within purchased intangibles in cost of revenue.

Schedule of Net Revenue by Geography

The following table shows net revenue by geography for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
	(In thousands)
United States (“U.S.”)	$	271,683	$	174,805	$	624,321	$	473,381
Americas (excluding U.S.)		6,208		3,874		14,006		10,497
EMEA		63,705		49,554		154,212		149,608
APAC		36,518		37,625		95,590		112,306
Total net revenue	$	378,114	$	265,858	$	888,129	$	745,792

Schedule of Long-Lived Asset By Geographic Region

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

	As of
	September 27, 2020		December 31, 2019
	(In thousands)
United States (“U.S.”)	$	19,844	$	23,137
Americas (excluding U.S.)		3,152		4,036
EMEA		3,520		3,782
Singapore		5,891		—
China		4,234		5,040
APAC (excluding Singapore and China) ⁽¹⁾		9,853		10,605
Total	$	46,494	$	46,600

⁽¹⁾	No individual country, other than disclosed above, represented more than 10% of the Company’s total long-lived assets in the periods presented.