Segment Information (Tables)

9 Months Ended

Oct. 03, 2021

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 before income taxes is as follows:

	Three Months Ended						Nine Months Ended
	October 3, 2021			September 27, 2020			October 3, 2021			September 27, 2020

Net Revenue:
Connected Home	$	208,539		$	316,739		$	679,320		$	711,419
SMB		81,611			61,375			237,566			176,710
Total net revenue	$	290,150		$	378,114		$	916,886		$	888,129

Contribution Income:
Connected Home	$	22,558		$	55,964		$	101,189		$	105,738
Contribution margin		10.8	%		17.7	%		14.9	%		14.9	%
SMB	$	17,137		$	8,721		$	49,831		$	26,573
Contribution margin		21.0	%		14.2	%		21.0	%		15.0	%
Total segment contribution income	$	39,695		$	64,685		$	151,020		$	132,311
Corporate and unallocated costs		(20,203	)		(23,293	)		(62,744	)		(61,744	)
Amortization of intangibles ⁽¹⁾		(145	)		(1,470	)		(1,768	)		(4,508	)
Stock-based compensation expense		(6,210	)		(7,218	)		(20,072	)		(22,726	)
Change in fair value of contingent consideration		—			(187	)		3,003			(276	)
Restructuring and other charges		(222	)		(329	)		(3,378	)		(1,311	)
Litigation reserves, net		—			(22	)		(315	)		(44	)
Other income (expense), net ⁽²⁾		(132	)		(417	)		15			(4,378	)
Income before income taxes	$	12,783		$	31,749		$	65,761		$	37,324

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

⁽²⁾	Amounts included gain/loss on investments, net, of $(166,000) and $(174,000) for the three and nine months ended October 3, 2021, respectively, and $(0.9) million and $(5.4) million for the three and nine months ended September 27, 2020, respectively.

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 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
	(In thousands)
United States (U.S.)	$	188,009	$	271,683	$	606,735	$	624,321
Americas (excluding U.S.)		7,114		6,208		20,172		14,006
EMEA		56,940		63,705		179,802		154,212
APAC		38,087		36,518		110,177		95,590
Total net revenue	$	290,150	$	378,114	$	916,886	$	888,129

Schedule of Long-Lived Asset By Geographic Region

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

	As of
	October 3, 2021		December 31, 2020
	(In thousands)
United States (U.S.)	$	15,787	$	19,173
Americas (excluding U.S.)		3,563		2,845
EMEA		2,762		3,215
Singapore		4,870		5,964
APAC (excluding Singapore) ⁽¹⁾		12,904		14,294
Total	$	39,886	$	45,491

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