Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Details

v3.23.3
Balance Sheet Details
 9 Months Ended
Sep. 30, 2023
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Details Balance Sheet Details
Cash, cash equivalents and restricted cash consist of the following:
September 30, 2023 December 31, 2022
(in thousands)
Cash and cash equivalents $ 187,028  $ 187,353 
Short-term restricted cash 1,105  982 
Long-term restricted cash 19  22 
Total cash, cash equivalents and restricted cash $ 188,152  $ 188,357 
As of September 30, 2023 and December 31, 2022, cash and cash equivalents included money market funds of approximately $77.1 million and $0.4 million, respectively. As of September 30, 2023 and December 31, 2022, the Company had restricted cash of approximately $1.1 million and $1.0 million, respectively. The cash is restricted in connection with guarantees for certain import duties and office leases.
Inventory consists of the following:
September 30, 2023 December 31, 2022
(in thousands)
Work-in-process $ 63,827  $ 97,840 
Finished goods 51,115  62,704 
$ 114,942  $ 160,544 
Property and equipment, net consists of the following:
Useful Life
(in Years)		 September 30, 2023 December 31, 2022
(in thousands)
Furniture and fixtures 5 $ 3,902  $ 3,924 
Machinery and equipment
3-5
 74,126  74,258 
Masks and production equipment
2-5
 54,240  50,970 
Software 3 11,367  10,111 
Leasehold improvements
1-5
 34,851  34,236 
Construction in progress N/A 1,168  7,602 
179,654  181,101 
Less: accumulated depreciation and amortization (110,170) (102,083)
$ 69,484  $ 79,018 
Depreciation expense for the three months ended September 30, 2023 and 2022 was $5.6 million and $5.1 million, respectively. Depreciation expense for the nine months ended September 30, 2023 and 2022 was $18.5 million and $14.7 million, respectively.
In March 2022, the Company entered into a note receivable with a supplier for $10.0 million which is included in other long-term assets as of September 30, 2023 and December 31, 2022, respectively. In September 2023, the terms of this note receivable were renegotiated, and the first initial repayment of $1.5 million is now due by March 31, 2025, and annual repayments of $1.7 million per year are due annually thereafter by March 31, from 2026 through 2030, provided that certain production utilization targets for the prior year are met. Previously, repayments of $2.0 million were due annually by March 31, 2024 through 2027.
Accrued price protection liability consists of the following activity:
Nine Months Ended September 30,
2023 2022
(in thousands)
Beginning balance $ 113,274  $ 40,509 
Charged as a reduction of revenue 50,092  142,473 
Payments (91,723) (66,391)
Ending balance $ 71,643  $ 116,591 
Accrued expenses and other current liabilities consist of the following:
September 30, 2023 December 31, 2022
(in thousands)
Accrued technology license payments $ 4,682  $ 7,402 
Accrued professional fees 5,366  4,072 
Accrued engineering and production costs 6,304  2,560 
Accrued restructuring 1,732  1,082 
Accrued royalty 620  1,662 
Short-term lease liabilities 8,749  10,489 
Accrued customer credits 2,059  304 
Income tax liability 802  8,895 
Customer contract liabilities 1,397  1,072 
Accrued obligations to customers for price adjustments 45,303  52,392 
Accrued obligations to customers for stock rotation rights 755  605 
Contingent consideration - current portion 2,689  2,941 
Other 5,818  6,679 
$ 86,276  $ 100,155 
The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component:
Cumulative Translation Adjustments Pension and Other Defined Benefit Plan Obligation Total
(in thousands)
Balance at December 31, 2022 $ (5,180) $ 4,159  $ (1,021)
Other comprehensive loss before reclassifications, net of tax (3,125) (3,792) (6,917)
Balance at September 30, 2023 $ (8,305) $ 367  $ (7,938)