Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of material contractual obligations

As of September 30, 2023, the Company’s material contractual obligations were as follows:


(In thousands)	Total		Remainder of 2023		2024		2025		2026		2027
Contractual obligations (1) (2)
Software licenses (3)	$	29,847	$	5,262	$	16,502	$	8,083	$	—	$	—
Other contractual obligations	1,800		600		1,200		—		—		—
Acquisition retention bonuses (4) (5)	879		—		550		329		—		—


Total	$	32,526	$	5,862	$	18,252	$	8,412	$	—	$	—

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(1) The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $104.4 million, including $27.4 million recorded as a reduction of long-term deferred tax assets and $77.0 million in long-term income taxes payable as of September 30, 2023. As noted below in Note 13, “Income Taxes,” although it is possible that some of the unrecognized tax benefits could be settled within the next 12 months, the Company cannot reasonably estimate the outcome at this time.

(2) For the Company’s lease commitments as of September 30, 2023, refer to Note 8, “Leases.”

(3) The Company has commitments with various software vendors for agreements generally having terms longer than one year. As of September 30, 2023, approximately $16.0 million of the fair value of the software licenses was included in other current liabilities and $11.1 million was included in other long-term liabilities, in the accompanying Unaudited Condensed Consolidated Balance Sheet.

(4) In connection with the acquisitions of Hardent in the second quarter of 2022 and PLDA in the third quarter of 2021, the Company is obligated to pay retention bonuses to certain employees subject to certain eligibility and acceleration provisions, including the condition of employment.

(5) In connection with the acquisition of AnalogX in the third quarter of 2021, the Company was obligated to pay retention bonuses to certain employees subject to certain eligibility and acceleration provisions, including the condition of employment. In September 2023, the Company divested its PHY IP group, which includes AnalogX and resulted in the Company recognizing an immaterial decrease related to the remaining AnalogX acquisition retention bonus liability. Refer to Note 17, “Divestiture,” for additional information.