Netgear 2012 Annual Report Download - page 92

Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
it has met the applicable requirements of current WEEE Legislation and similar legislation in other jurisdictions, to the extent implementation
requirements have been published.
Additionally, the EU enacted the Restriction of Hazardous Substances Directive (“RoHS Legislation”),
the REACH Regulation, Packaging
Directive and the Battery Directive. EU RoHS Legislation, along with similar legislation in China, requires manufacturers to ensure certain
substances, including polybrominated biphenyls (“PBD”), polybrominated diphenyl ethers (“PBDE”),
mercury, cadmium, hexavalent chromium and
lead (except for allowed exempted materials and applications), are below specified maximum concentration values in certain products put on the
market after July 1, 2006. The RoHS Directive was recast on July 21, 2011 and went into force on January 3, 2013. The Company expects no
material impact on its consolidated results of operations and financial positions due to this recasting. The REACH Regulation requires manufacturers
to ensure the published list of substances of very high concern in certain products are below specified maximum concentration values. The Battery
Directive controls use of certain types of battery technology in certain products and requires mandatory marking. The Company believes it has met
the requirements of the RoHS Directive Legislation, the REACH Regulation and the Battery Directive Legislation.
Additionally, the EU enacted the Energy Using Product (“EuP”)
Directive, which came into force in August of 2007. The EuP Directive
required manufacturers of certain products to meet minimum energy efficiency performance requirements. These requirements were documented in
EuP implementing measures issued for specific product categories. The implementing measures affecting the Company's products are minimum
power supply efficiencies and may include required equipment standby modes, which also reduce energy consumption. The EuP Directive was
repealed in November of 2009 and replaced by the Energy Related Products ("ErP") Directive, which includes the same implementing measures of
the former EuP Directive and new implementing measures applicable to the Company's products. The Company is in compliance with applicable
implementing measures of the ErP Directives since it came into force.
Note 10. Stockholders’ Equity
Common Stock Repurchase Programs
In October 21, 2008, the Company’s Board of Directors authorized management to repurchase up to 6,000,000 shares of the Company’
s
outstanding common stock. Under this authorization, the timing and actual number of shares subject to repurchase are at the discretion of
management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the
price of the Company’s common stock. The Company did not repurchase any shares under this authorization during the years ended
December 31,
2012 , 2011 and 2010 .
The Company repurchased approximately 22,000 shares, or $850,000
of common stock under a repurchase program to help administratively
facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving RSUs during the year ended
December 31, 2012 . Similarly, during the years ended December 31, 2011 and December 31, 2010
, the Company repurchased approximately
25,000 shares and 32,000 shares, respectively, or $926,000 and $736,000
of common stock, respectively, under the same program to help facilitate
tax withholding for RSUs.
These shares were retired upon repurchase. The Company’
s policy related to repurchases of its common stock is to charge the excess of cost
over par value to retained earnings. All repurchases were made in compliance with Rule 10b-
18 under the Securities Exchange Act of 1934, as
amended.
Cumulative Other Comprehensive Income, Net
The following table sets forth the components of cumulative other comprehensive income, net of related taxes, as of December 31, 2012
and
December 31, 2011 (in thousands):
88
As of
December 31,
2012 December 31, 2011
Net unrealized (loss) gain on derivative instruments
$
(24
)
$
6
Net unrealized gain on available-for-sale securities
28
17
Total cumulative other comprehensive income, net of taxes
$
4
$
23