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BALANCE SHEET COMPONENTS
 12 Months Ended
Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]  
BALANCE SHEET COMPONENTS BALANCE SHEET COMPONENTS
Inventory
Inventory consisted of the following (in thousands):
December 31,
20222021
Raw materials$9,338 $5,101 
Finished goods5,817 5,167 
Total$15,155 $10,268 
Other Assets
Other assets consisted of the following (in thousands):
December 31,
20222021
PCBAs$18,599 $13,863 
Cloud computing arrangements 2,523 1,427 
Other1,130 762 
$22,252 $16,052 

The Company uses PCBAs in each wearable Zio XT patch and Zio AT patch, as well as the wireless gateway used in conjunction with the Zio AT patch. The PCBAs are used numerous times and have useful lives beyond one year. Each time a PCBA is used in a wearable Zio XT patch or Zio AT patch, a portion of the cost of the PCBA is recorded as a cost of revenue. Each time a wireless gateway is used with a Zio AT patch, a portion of the gateway is recorded as a cost of revenue. PCBAs, which are recorded as other assets, were $18.6 million and $13.9 million as of December 31, 2022 and 2021, respectively. The amortization was $5.2 million, $4.4 million and $3.0 million for the years ending December 31, 2022, 2021, and 2020, respectively.
Property and Equipment
Property and equipment, net consisted of the following (in thousands):
December 31,
20222021
Laboratory and manufacturing equipment$4,911 $3,192 
Computer equipment and software2,315 2,269 
Furniture and fixtures4,119 4,174 
Leasehold improvements23,144 20,401 
Internal-use software44,877 30,922 
Internal-use software in development28,069 15,739 
Construction in progress3,451 1,951 
Total property and equipment, gross110,886 78,648 
Less: accumulated depreciation and amortization(35,216)(22,704)
Total property and equipment, net$75,670 $55,944 
Depreciation and amortization expense for the years ended December 31, 2022, 2021 and 2020 was $13.4 million, $9.8 million and $6.9 million, respectively.
During the year ended December 31, 2022, internal-use-software increased by $26.3 million. This increase relates to the enhancements to the Company’s core technology, products and services and artificial intelligence, as well as investment in future technology, such as the Zio Monitor System, the Company's new biosensor technology platform, and the clinically-integrated ZEUS System for the Zio Watch.
Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
December 31,
20222021
Accrued payroll and related expenses$34,752 $34,484 
Accrued vacation8,608 7,431 
Accrued professional services fees7,234 1,724 
Accrued expenses7,006 3,112 
Claims payable4,464 2,988 
Accrued state and foreign income and sales taxes2,388 745 
Accrued employee share purchase plan contributions1,045 1,002 
Total accrued liabilities$65,497 $51,486