Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

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Revenue from Contracts with Customers
 6 Months Ended
Jun. 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 June 30, Six Months Ended June 30,
2023 2022 2023 2022
Broadband $ 53,549  $ 139,098  $ 135,230  $ 273,654 
% of net revenue 29  % 50  % 31  % 50  %
Connectivity 37,939  56,400  104,207  116,579 
% of net revenue 21  % 20  % 24  % 21  %
Infrastructure 49,262  35,889  95,564  69,070 
% of net revenue 27  % 13  % 22  % 13  %
Industrial and multi-market 43,188  48,622  97,379  84,633 
% of net revenue 23  % 17  % 23  % 16  %
Total net revenue $ 183,938  $ 280,009  $ 432,380  $ 543,936 
Revenues from sales through the Company’s distributors accounted for 53% and 45% of net revenue for the three months ended June 30, 2023 and 2022, respectively.
Revenues from sales through the Company’s distributors accounted for 47% and 46% of net revenue for the six months ended June 30, 2023 and 2022, respectively.
Contract Liabilities
As of June 30, 2023 and December 31, 2022, customer contract liabilities were approximately $1.8 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 six months ended June 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 six months ended June 30, 2023 and 2022.
Obligations to Customers for Price Adjustments and Returns and Assets for Right-of-Returns
As of June 30, 2023 and December 31, 2022, obligations to customers consisting of estimates of price protection rights offered to the Company’s end customers totaled $80.1 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 June 30, 2023 were $50.2 million and $0.6 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 six months ended June 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 June 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 $0.1 million and $0.2 million, respectively. Right of return assets are included in inventory in the consolidated balance sheets.
As of June 30, 2023 and December 31, 2022, there were no impairment losses recorded on customer accounts receivable.