Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Details

v3.21.2
Balance Sheet Details
 9 Months Ended
Sep. 30, 2021
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Details Balance Sheet Details
Cash, cash equivalents and restricted cash consist of the following:
September 30, 2021 December 31, 2020
(in thousands)
Cash and cash equivalents $ 169,424  $ 148,901 
Short-term restricted cash 107  115 
Long-term restricted cash 1,023  1,018 
Total cash, cash equivalents and restricted cash $ 170,554  $ 150,034 
As of September 30, 2021 and December 31, 2020, cash and cash equivalents included money market funds of approximately $20.4 million. As of September 30, 2021 and December 31, 2020, the Company has restricted cash of approximately $1.1 million. The cash is restricted in connection with guarantees for certain import duties and office leases.
Inventory consists of the following:
September 30, 2021 December 31, 2020
(in thousands)
Work-in-process $ 63,436  $ 35,852 
Finished goods 63,911  61,987 
$ 127,347  $ 97,839 
Prepaid and other current assets consist of the following:
September 30, 2021 December 31, 2020
(in thousands)
Prepaid expenses $ 9,986  $ 7,674 
Other receivables —  32,762 
Other current assets 4,549  6,985 
$ 14,535  $ 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)		 September 30, 2021 December 31, 2020
(in thousands)
Furniture and fixtures 5 $ 3,855  $ 2,524 
Machinery and equipment
3-5
 59,759  55,456 
Masks and production equipment
2-5
 28,336  19,205 
Software 3 8,569  7,194 
Leasehold improvements
1-5
 30,126  16,871 
Construction in progress N/A 2,045  8,050 
132,690  109,300 
Less: accumulated depreciation and amortization (79,668) (69,830)
$ 53,022  $ 39,470 

Depreciation expense for the three and nine months ended September 30, 2021 was $4.7 million and $12.0 million, respectively. Depreciation expense for the three and nine months ended September 30, 2020 was $3.6 million and $6.9 million, respectively.
Included in other long-term assets is an investment in a privately held entity of $5.0 million as of September 30, 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:
Nine Months Ended September 30,
2021 2020
(in thousands)
Beginning balance $ 47,766  $ 12,557 
Charged as a reduction of revenue 60,488  17,358 
Reversal of unclaimed rebates —  (159)
Payments (58,843) (11,722)
Ending balance $ 49,411  $ 18,034 
Accrued expenses and other current liabilities consist of the following:
September 30, 2021 December 31, 2020
(in thousands)
Deferred purchase price payments $ —  $ 34,484 
Payables under transition services agreement —  17,420 
Accrued technology license payments 5,011  5,821 
Accrued professional fees 3,880  2,620 
Accrued engineering and production costs 12,641  3,448 
Accrued restructuring 634  3,628 
Accrued royalty 1,478  1,965 
Short-term lease liabilities 9,071  8,144 
Accrued customer credits 1,284  1,135 
Income tax liability 5,500  1,193 
Customer contract liabilities 1,023  29 
Accrued obligations to customers for price adjustments 21,458  10,277 
Accrued obligations to customers for stock rotation rights 3,108  2,036 
Other 5,778  13,642 
$ 70,866  $ 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 Pension and Other Defined Benefit Plan Obligation Total
(in thousands)
Balance at December 31, 2020 $ 263  $ 1,172  $ 1,435 
Other comprehensive income (loss) before reclassifications, net of tax (924) —  (924)
Balance at September 30, 2021 $ (661) $ 1,172  $ 511