Annual report pursuant to Section 13 and 15(d)

Balance Sheet Details

v3.24.0.1
Balance Sheet Details
 12 Months Ended
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Details Balance Sheet Details
Cash, cash equivalents and restricted cash consist of the following:
December 31, 2023 December 31, 2022
(in thousands)
Cash and cash equivalents $ 187,288  $ 187,353 
Short-term restricted cash 1,051  982 
Long-term restricted cash 17  22 
Total cash, cash equivalents and restricted cash $ 188,356  $ 188,357 
As of December 31, 2023 and December 31, 2022, cash and cash equivalents included money market funds of approximately $78.1 million and $0.4 million, respectively. As of December 31, 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:
December 31, 2023 December 31, 2022
(in thousands)
Work-in-process $ 60,368  $ 97,840 
Finished goods 39,540  62,704 
$ 99,908  $ 160,544 
Inventory decreased $60.6 million from $160.5 million as of December 31, 2022 to $99.9 million as of December 31, 2023, as the Company’s management lowered inventory levels due to reduced supply chain constraints and decreased customer demand for certain products.

Property and equipment, net consists of the following:
Useful Life
(in Years)		 December 31, 2023 December 31, 2022
(in thousands)
Furniture and fixtures 5 $ 3,995  $ 3,924 
Machinery and equipment
3-5
 76,732  74,258 
Masks and production equipment
2-5
 54,240  50,970 
Software 3 11,427  10,111 
Leasehold improvements
1-5
 35,867  34,236 
Construction in progress N/A 348  7,602 
182,609  181,101 
Less: accumulated depreciation and amortization (116,178) (102,083)
$ 66,431  $ 79,018 
Depreciation expense for the years ended December 31, 2023, 2022, and 2021 was $23.8 million, $20.3 million and $17.7 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 in the consolidated balance sheet as of December 31, 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 per year were due annually by March 31, in years 2024 through 2027.
Accrued price protection liability consists of the following activity:
Year Ended December 31,
2023 2022
(in thousands)
Beginning balance $ 113,274  $ 40,509 
Charged as a reduction of revenue 62,644  180,538 
Payments (104,234) (107,773)
Ending balance $ 71,684  $ 113,274 
The reason for the significant decrease in price protection liability from approximately $113.3 million as of December 31, 2022 to approximately $71.7 million as of December 31, 2023, was due to a significant decrease in revenues from customers with such price protection rights from 2022 to 2023, which decreased the corresponding price protection accruals to such customers.
Accrued expenses and other current liabilities consist of the following:
December 31, 2023 December 31, 2022
(in thousands)
Accrued technology license payments $ 3,843  $ 7,402 
Accrued professional fees 3,736  4,072 
Accrued engineering and production costs 2,861  2,560 
Accrued restructuring 8,301  1,082 
Accrued royalty 603  1,662 
Short-term lease liabilities 9,132  10,489 
Accrued customer credits 3,984  304 
Income tax liability 521  8,895 
Customer contract liabilities 1,597  1,072 
Accrued obligations to customers for price adjustments 54,837  52,392 
Accrued obligations to customers for stock rotation rights 349  605 
Contingent consideration – current portion 2,462  2,941 
Other 6,242  6,679 
$ 98,468  $ 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, 2021 $ 21  $ 2,104  $ 2,125 
Other comprehensive income (loss) before reclassifications, net of tax (5,201) 2,055  (3,146)
Balance at December 31, 2022 (5,180) 4,159  (1,021)
Other comprehensive income (loss) before reclassifications, net of tax 121  (206) (85)
Reclassification adjustments of unrealized gain (loss) on pension and other defined benefit plans, net of tax —  (2,685) (2,685)
Net current period other comprehensive income (loss) 121  (2,891) (2,770)
Balance at December 31, 2023 $ (5,059) $ 1,268  $ (3,791)