Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Revenue by Market
The table below presents disaggregated net revenues by market (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Broadband $ 34,416  $ 120,165  $ 169,646  $ 393,819 
% of net revenue 25  % 42  % 30  % 47  %
Connectivity 15,025  82,603  119,232  199,182 
% of net revenue 11  % 29  % 21  % 24  %
Infrastructure 49,985  35,580  145,549  104,650 
% of net revenue 37  % 12  % 26  % 13  %
Industrial and multi-market 36,104  47,382  133,483  132,015 
% of net revenue 27  % 17  % 23  % 16  %
Total net revenue $ 135,530  $ 285,730  $ 567,910  $ 829,666 
Revenues from sales through the Company’s distributors accounted for 46% and 41% of net revenue for the three months ended September 30, 2023 and 2022, respectively.
Revenues from sales through the Company’s distributors accounted for 47% and 44% of net revenue for the nine months ended September 30, 2023 and 2022, respectively.
Contract Liabilities
As of September 30, 2023 and December 31, 2022, customer contract liabilities were approximately $1.4 million and $1.1 million, respectively, and consisted primarily of advanced payments received for which performance obligations have not been completed. Revenue recognized in each of the nine months ended September 30, 2023 and 2022 that was included in the contract liability balance as of the beginning of each of those respective periods was immaterial.
There were no material changes in the contract liabilities balance during the nine months ended September 30, 2023 and 2022.
Obligations to Customers for Price Adjustments and Returns and Assets for Right-of-Returns
As of September 30, 2023 and December 31, 2022, obligations to customers consisting of estimates of price protection rights offered to the Company’s end customers totaled $71.6 million and $113.3 million, respectively, and are included in accrued price protection liability in the consolidated balance sheets. For activity in this account, including amounts included in net revenue, refer to Note 7. Other obligations to customers representing estimates of price adjustments to be claimed by distributors upon sell-through of their inventory to their end customer and estimates of stock rotation returns to be claimed by distributors on products sold as of September 30, 2023 were $45.3 million and $0.8 million, respectively, and as of December 31, 2022 were $52.4 million and $0.6 million, respectively, and are included in accrued expenses and other current liabilities in the consolidated balance sheets (Note 7). The increase in revenue in each of the nine months ended September 30, 2023 and 2022 from net changes in transaction prices for amounts included in obligations to customers for price adjustments as of the beginning of those respective periods was not material.
As of September 30, 2023 and December 31, 2022, right of return assets under customer contracts representing the estimates of product inventory the Company expects to receive from customers in stock rotation returns were approximately $0.2 million and $0.2 million, respectively. Right of return assets are included in inventory in the consolidated balance sheets.
As of September 30, 2023 and December 31, 2022, there were no impairment losses recorded on customer accounts receivable.