Netgear 2012 Annual Report Download - page 98

Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
and administrative costs, stock-based compensation expenses, amortization of intangibles, acquisition-
related integration costs, restructuring costs,
litigation reserves and interest and other income (expense), net. The Company does not evaluate operating segments using discrete asset information.
Financial information for each reportable segment and a reconciliation of segment contribution income to income before income taxes is as
follows (in thousands, except percentage data):
________________________________
94
Year Ended December 31,
2012
2011 2010
Net revenues:
Retail
$
504,797
$
481,795
$
435,484
Commercial
307,945
331,439
284,539
Service provider
459,179
367,784
182,029
Total net revenues
$
1,271,921
$
1,181,018
$
902,052
Contribution income:
Retail
$
86,808
$
81,589
$
71,862
Retail contribution margin
17.2
%
16.9
%
16.5
%
Commercial
67,826
74,746
63,021
Commercial contribution margin
22.0
%
22.6
%
22.1
%
Service Provider
40,794
32,797
14,026
Service Provider contribution margin
8.9
%
8.9
%
7.7
%
Total segment contribution income
195,428
189,132
148,909
Corporate and unallocated costs
(47,766
)
(43,301
)
(39,244
)
Amortization of intangible assets (1)
(4,763
)
(4,658
)
(5,293
)
Stock-based compensation expense
(14,372
)
(13,762
)
(12,201
)
Restructuring and other charges
(1,190
)
(2,094
)
88
Acquisition related compensation and expense
(833
)
(40
)
(686
)
Impact to cost of sales from acquisition accounting adjustments to inventory
—
(
609
)
—
Litigation reserves, net
(390
)
201
(211
)
Interest income
498
477
426
Other income (expense), net
2,670
(1,136
)
(564
)
Income before income taxes
$
129,282
$
124,210
$
91,224
(1)
Amount excludes amortization expense related to patents within purchased intangible assets in costs of revenues.