Netgear 2009 Annual Report Download - page 72

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Table of Contents
A total of $2.6 million of the $22.7 million in acquired intangible assets was designated as trademarks. The value was calculated based on
the present value of the future estimated cash flows derived from estimated royalty savings attributable to use of the trademarks. This $2.6
million is being amortized over its estimated useful life of six years.
In November 2008, the Company made an additional $10 million payment in connection with the Company’
s 2007 acquisition of Infrant in
connection with the achievement of certain revenue targets. This resulted in an increase in goodwill of $8.7 million, the recognition of
compensation expense of $650,000, and a reduction in taxes payable of $620,000. Additionally, in December 2009 the Company has accrued
$113,000 for compensation expense related to the second potential payout.
Note 3—Balance Sheet Components (in thousands):
Available-for-sale short-term investments consist of the following:
Accounts receivable and related allowances consist of the following:
Inventories consist of the following:
70
December 31,
2009
2008
Cost
Unrealized
Gain
Estimated
Fair Value
Cost
Unrealized
Gain
Estimated
Fair Value
U.S. Treasury bills and notes
$
74,892
$
6
$
74,898
$
10,061
$
109
$
10,170
December 31,
2009
2008
(In thousands)
Gross accounts receivable
$
178,430
$
153,333
Less:
Allowance for doubtful accounts
(2,039
)
(1,918
)
Allowance for sales returns
(11,993
)
(9,710
)
Allowance for price protection
(1,545
)
(3,430
)
Total allowances
(15,577
)
(15,058
)
Accounts receivable, net
$
162,853
$
138,275
December 31,
2009
2008
(In thousands)
Raw materials
$
1,150
$
639
Finished goods
89,440
111,601
Total
$
90,590
$
112,240