MaxLinear, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Balance Sheet Details

Balance Sheet Details

12 Months Ended

Dec. 31, 2021

Balance Sheet Related Disclosures [Abstract]

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


	December 31, 2021		December 31, 2020
	(in thousands)
Cash and cash equivalents	$	130,572	$	148,901
Short-term restricted cash	105		115
Long-term restricted cash	1,061		1,018
Total cash, cash equivalents and restricted cash	$	131,738	$	150,034

As of December 31, 2021 and December 31, 2020, cash and cash equivalents included money market funds of approximately $20.4 million. As of December 31, 2021 and December 31, 2020, the Company has restricted cash of approximately $1.2 million and $1.1 million, respectively. The cash is restricted in connection with guarantees for certain import duties and office leases.

Inventory consists of the following:


	December 31, 2021		December 31, 2020
	(in thousands)

Work-in-process	$	72,369	$	35,852
Finished goods	59,334		61,987


	$	131,703	$	97,839

Prepaid and other current assets consist of the following:


	December 31, 2021		December 31, 2020
	(in thousands)
Prepaid expenses	$	12,194	$	7,674
Other receivables	—		32,762
Other current assets	9,806		6,985
	$	22,000	$	47,421

As of December 31, 2020, other receivables of $32.8 million consisted of amounts due from Intel of $28.4 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 $4.4 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)	December 31, 2021		December 31, 2020
		(in thousands)
Furniture and fixtures	5	$	3,917	$	2,524
Machinery and equipment	3-5	65,004		55,456
Masks and production equipment	2-5	32,099		19,205
Software	3	8,763		7,194
Leasehold improvements	1-5	30,889		16,871
Construction in progress	N/A	4,647		8,050
		145,319		109,300
Less: accumulated depreciation and amortization		(84,395)		(69,830)
		$	60,924	$	39,470

Depreciation expense for the years ended December 31, 2021, 2020, and 2019 was $17.7 million, $11.3 million and $7.3 million, respectively.

Included in other long-term assets is an investment in a privately held entity of $5.0 million as of December 31, 2021. The Company does not have the ability to exercise significant influence or control over such entity and has accounted for the investment as a financial instrument. Given that there is not a readily determinable fair value, the Company is electing to measure such investment at cost, less any impairment, and adjust the carrying value to fair value if any observable price changes for similar investments in the same entity are identified.

Accrued price protection liability consists of the following activity:


	Year Ended December 31,
	2021		2020
	(in thousands)
Beginning balance	$	47,766	$	12,557

Charged as a reduction of revenue	81,116		48,942
Reversal of unclaimed rebates	—		(159)
Payments	(88,373)		(13,574)
Ending balance	$	40,509	$	47,766

Accrued expenses and other current liabilities consist of the following:


	December 31, 2021		December 31, 2020
	(in thousands)
Deferred purchase price payments	$	—	$	34,484
Payables under transition services agreement	—		17,420
Accrued technology license payments	7,337		5,821
Accrued professional fees	3,651		2,620
Accrued engineering and production costs	2,934		3,448
Accrued restructuring	320		3,628

Accrued royalty	2,080		1,965
Short-term lease liabilities	8,888		8,144

Accrued customer credits	5,136		1,135

Income tax liability	7,105		1,193
Customer contract liabilities	1,044		29
Accrued obligations to customers for price adjustments	6,721		10,277
Accrued obligations to customers for stock rotation rights	2,847		2,036
Other	9,205		13,642
	$	57,268	$	105,842

As of December 31, 2020, payables under transition services agreement of $17.4 million consisted of amounts due to Intel of approximately $9.1 million for purchases of inventory and $8.3 million for other operating expenses incurred under the transition services agreement.

The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component:


		Cumulative Translation Adjustments		Interest Rate Hedge		Pension and Other Defined Benefit Plan Obligation		Total
	(in thousands)
Balance at December 31, 2019		$	(747)	$	(140)	$	—	$	(887)
Other comprehensive income (loss) before reclassifications, net of tax		1,010		225		1,172		2,407
Amounts reclassified, net of tax		—		(85)		—		(85)
Net current period other comprehensive income (loss)		1,010		140		1,172		2,322

Balance at December 31, 2020		263		—		1,172		1,435
Other comprehensive income (loss) before reclassifications, net of tax		(242)		—		932		690



Balance at December 31, 2021		$	21	$	—	$	2,104	$	2,125