Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Details

v3.20.2
Balance Sheet Details
9 Months Ended
Sep. 30, 2020
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Details Balance Sheet Details
Cash, cash equivalents and restricted cash consist of the following:
September 30, 2020 December 31, 2019
(in thousands)
Cash and cash equivalents $ 96,570  $ 92,708 
Short-term restricted cash 111  349 
Long-term restricted cash 61  60 
Total cash, cash equivalents and restricted cash $ 96,742  $ 93,117 
As of September 30, 2020 and December 31, 2019, cash and cash equivalents included money market funds of approximately $21.4 million and $20.4 million, respectively. As of September 30, 2020 and December 31, 2019, the Company has restricted cash of approximately $0.2 million and $0.4 million, respectively. The cash is restricted in connection with guarantees for certain import duties and office leases.
Inventory consists of the following:
September 30, 2020 December 31, 2019
(in thousands)
Work-in-process $ 48,023  $ 14,525 
Finished goods 56,448  16,985 
$ 104,471  $ 31,510 
Prepaid and other current assets consist of the following:
September 30, 2020 December 31, 2019
(in thousands)
Prepaid expenses $ 4,898  $ 3,366 
Other receivables 28,960  — 
Other current assets 9,688  3,426 
$ 43,546  $ 6,792 
As of September 30, 2020, other receivables of $29.0 million consist of amounts due from Intel of $24.7 million for amounts collected on the Company’s behalf from customers on sales of the Company’s products under the transition services agreement and of $4.2 million for reimbursement of certain severance-related costs pursuant to the Asset Purchase Agreement (Note 3).
Property and equipment, net consists of the following:
Useful Life
(in Years)
September 30, 2020 December 31, 2019
(in thousands)
Furniture and fixtures 5 $ 2,517  $ 2,199 
Machinery and equipment
3-5
54,194  35,660 
Masks and production equipment
2-5
19,228  15,209 
Software 3 6,867  5,956 
Leasehold improvements
1-5
16,687  16,186 
Construction in progress N/A 3,136  746 
102,629  75,956 
Less: accumulated depreciation and amortization (65,371) (59,343)
$ 37,258  $ 16,613 

Depreciation expense for the three months ended September 30, 2020 and 2019 was $3.6 million and $1.7 million, respectively. Depreciation expense for the nine months ended September 30, 2020 and 2019 was $6.9 million and $5.6 million, respectively.

Accrued price protection liability consists of the following activity:
Nine Months Ended September 30,
2020 2019
(in thousands)
Beginning balance $ 12,557  $ 16,454 
Charged as a reduction of revenue 17,358  19,884 
Reversal of unclaimed rebates (159) (719)
Payments (11,722) (21,998)
Ending balance $ 18,034  $ 13,621 
Accrued expenses and other current liabilities consist of the following:
September 30, 2020 December 31, 2019
(in thousands)
Deferred purchase price payments $ 34,100  $ — 
Accrued technology license payments 5,969  4,500 
Accrued professional fees 7,181  861 
Accrued engineering and production costs 12,027  4,491 
Accrued restructuring 5,596  294 
Accrued royalty 1,003  923 
Short-term lease liabilities 6,225  4,810 
Current portion of debt 7,785  — 
Accrued customer credits 2,590  832 
Income tax liability 684  65 
Customer contract liabilities 14  107 
Accrued obligations to customers for price adjustments 12,137  8,382 
Accrued obligations to customers for stock rotation rights 1,632  1,410 
Other 7,780  4,496 
$ 104,723  $ 31,171 
The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component:
Cumulative Translation Adjustments Interest Rate Hedge Total
(in thousands)
Balance at December 31, 2019 $ (747) $ (140) $ (887)
Current period other comprehensive income (loss) 415  22  437 
Balance at September 30, 2020 $ (332) $ (118) $ (450)