MaxLinear, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Details

Balance Sheet Details

9 Months Ended

Sep. 30, 2018

Balance Sheet Related Disclosures [Abstract]

Cash, cash equivalents and restricted cash consist of the following:



	September 30, 2018		December 31, 2017
	(in thousands)
Cash and cash equivalents	$	67,185	$	71,872
Short-term restricted cash	349		1,476
Long-term restricted cash	709		1,064
Total cash, cash equivalents and restricted cash	$	68,243	$	74,412

As of September 30, 2018 and December 31, 2017, the Company has restricted cash of $1.1 million and $2.5 million, respectively. The cash is restricted in connection with guarantees for certain import duties and office leases.

Inventory consists of the following:



	September 30, 2018		December 31, 2017
	(in thousands)
Work-in-process	$	20,992	$	21,823
Finished goods	20,765		31,611
	$	41,757	$	53,434

Property and equipment, net consists of the following:



	Useful Life (in Years)	September 30, 2018			December 31, 2017
		(in thousands)
Furniture and fixtures	5	$	2,085		$	2,105
Machinery and equipment	3-5	34,550			33,462
Masks and production equipment	2	12,631			11,470
Software	3	5,686			4,695
Leasehold improvements	1-5	16,096			14,340
Construction in progress	N/A	593			639
		71,641			66,711
Less accumulated depreciation and amortization		(52,228		)	(44,053		)
		$	19,413		$	22,658

Depreciation expense for the three months ended September 30, 2018 and 2017 was $2.8 million and $3.4 million, respectively. Depreciation expense for the nine months ended September 30, 2018 and 2017 was $8.9 million and $9.2 million, respectively.

Deferred revenue and deferred profit consist of the following:



	September 30, 2018		December 31, 2017⁽¹⁾
	(in thousands)
Deferred revenue—rebates	$	—	$	156
Deferred revenue—distributor transactions	—		5,341
Deferred cost of net revenue—distributor transactions	—		(1,135		)
	$	—	$	4,362

__________

⁽¹⁾ Due to the adoption of ASC 606 using the modified retrospective method, prior period amounts have not been adjusted to reflect the change to recognize certain distributor sales upon sale to the distributor, or the sell-in method, from recognition upon the Company's sale to the distributors' end customers, or the sell-through method, which required the deferral of revenue and profit on such distributor sales.

Accrued price protection liability consists of the following activity:



	Nine Months Ended September 30,
	2018			2017
	(in thousands)
Beginning balance	$	21,571		$	15,176
Charged as a reduction of revenue	25,848			36,256
Reversal of unclaimed rebates	(2,412		)	(70		)
Payments	(30,589		)	(23,133		)
Ending balance	$	14,418		$	28,229

Accrued expenses and other current liabilities consist of the following:



	September 30, 2018		December 31, 2017⁽¹⁾
	(in thousands)
Accrued technology license payments	$	4,500	$	4,500
Accrued professional fees	1,342		1,497
Accrued engineering and production costs	696		2,378
Accrued restructuring	1,904		3,039
Accrued royalty	943		1,206
Accrued leases—other	1,178		1,105
Accrued customer credits	1,253		2,667
Income tax liability	6,828		—
Customer contract liabilities	151		—
Accrued obligations to customers for price adjustments	6,158		—
Accrued obligations to customers for stock rotation rights	1,020		—
Other	1,507		3,914
	$	27,480	$	20,306

___________

⁽¹⁾ Due to the adoption of ASC 606 using the modified retrospective method, prior period amounts have not been adjusted to include customer contract liabilities and accrued obligations to customers for price adjustments and stock rotation rights, which are now required to be estimated and disclosed at the time of sale.