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Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Company conducts business across three geographic regions: Americas, Europe, Middle-East and Africa (“EMEA”)
and Asia Pacific
("APAC'). Net revenue by geography comprises gross revenue less such items as end-
user customer rebates and other sales incentives deemed to be a
reduction of net revenue per the authoritative guidance for revenue recognition, sales returns and price protection. For reporting purposes revenue is
attributed to each geographic region based on the location of the customer.
The following table shows net revenue by geography for the periods indicated (in thousands):
No single customer accounted for greater than 10% of net revenues in the years ended December 31, 2013 and 2012. For the year ended December
31, 2011, retailer, Best Buy Inc. and distributor, Ingram Micro, Inc. represented approximately 11% and 10% of net revenues respectively.
Property and equipment by geographic location are as follows (in thousands):
Note 13. Fair Value Measurements
The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use
of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the
hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three
levels that may be used to measure fair value:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term
of the asset or liability;
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e.,
supported by little or no market activity).
103
(2) These acquisition-related charges were expensed in the period incurred and reported in the Company's consolidated statements of operations within cost of revenues and operating
expense.
Year Ended December 31,
2013
2012
2011
United States
$
769,357
$
660,998
$
570,143
Americas (excluding U.S.)
19,961
18,421
16,913
United Kingdom
142,729
184,404
165,522
EMEA (excluding U.K.)
269,959
273,320
312,191
APAC
167,627
134,778
116,249
Total net revenue
$
1,369,633
$
1,271,921
$
1,181,018
December 31,
2013
December 31,
2012
United States
$
10,273
$
9,898
Americas (excluding U.S.)
2,160
36
EMEA
914
1,173
China
11,905
6,763
APAC (excluding China)
1,942
1,155
$
27,194
$
19,025