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Table of Contents NETGEAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Inventories
The Company records provisions for excess and obsolete inventory based on forecasts of future demand. While management believes the estimates
and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts are greater
than actual demand.
Property and equipment, net
Depreciation and amortization expense pertaining to property and equipment was $17.3 million , $11.9 million and $9.9 million for the years
ended December 31, 2013 , 2012 and 2011 , respectively.
Intangibles, net
The following tables present details of the Company’s purchased intangible assets:
73
As of
December 31,
2013
December 31,
2012
Raw materials
$
8,676
4,447
Work-in-process
6,233
—
Finished goods
209,547
170,456
Total inventories
$
224,456
174,903
As of
December 31,
2013
December 31,
2012
Computer equipment
$
8,527
7,290
Furniture, fixtures and leasehold improvements
14,019
12,761
Software
25,722
21,521
Machinery and equipment
50,656
31,694
Construction in progress
21
385
Total property and equipment, gross
98,945
73,651
Accumulated depreciation and amortization
(71,751
)
(54,626
)
Total property and equipment, net
$
27,194
19,025
Gross
Accumulated
Amortization
Net
December 31, 2013
Technology
60,999
$
(29,593
)
$
31,406
Customer contracts and relationships
56,500
(9,120
)
47,380
Other
10,545
(5,313
)
5,232
Finite-lived intangibles, net
128,044
(44,026
)
84,018
Indefinite-lived intangible assets
100
—
100
Total purchased intangible assets, net
128,144
$
(44,026
)
$
84,118