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BALANCE SHEET DETAILS | 9 Months Ended
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Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
BALANCE SHEET DETAILS | BALANCE SHEET DETAILS Inventory Inventory consisted of the following (in thousands):
| September 30, 2023 |  | December 31, 2022
Raw materials and work-in-process | $ | 5,962 |  |  | $ | 9,338 |
Finished goods | 7,686 |  |  | 5,817 |
Total | $ | 13,648 |  |  | $ | 15,155 |
Other Assets Other assets consisted of the following (in thousands):
| September 30, 2023 |  | December 31, 2022
PCBAs | $ | 37,980 |  |  | $ | 18,599 |
Cloud computing arrangements | 5,223 |  |  | 2,523 |
Strategic investment | 3,000 |  |  | — |
Other | 845 |  |  | 1,130 |
Total | $ | 47,048 |  |  | $ | 22,252 |
The Company reuses PCBAs in each wearable Zio XT patch, Zio AT patch, and Zio Monitor patch, as well as the wireless gateway used in conjunction with the Zio AT patch. As PCBAs are used in a wearable Zio XT patch, Zio AT patch, or Zio Monitor patch, a portion of the cost of the PCBA is recorded as a cost of revenue. The PCBAs are charged over a period beyond one year. Charges to cost of revenue were $2.4 million and $5.4 million for the three and nine months ended September 30, 2023, respectively, and $1.3 million and $3.8 million for the three and nine months ended September 30, 2022, respectively. During the nine months ended September 30, 2023, PCBAs increased by $19.4 million primarily related to the expanded launch of the Zio Monitor System, as well as additional needs for the Zio XT and Zio AT patches. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands):
| September 30, 2023 |  | December 31, 2022
Laboratory and manufacturing equipment | $ | 5,729 |  |  | $ | 4,911 |
Computer equipment and software | 2,448 |  |  | 2,315 |
Furniture and fixtures | 4,198 |  |  | 4,119 |
Leasehold improvements | 23,533 |  |  | 23,144 |
Internal-use software | 60,001 |  |  | 44,877 |
Internal-use software in development | 37,482 |  |  | 28,069 |
Construction in progress | 9,655 |  |  | 3,451 |
Total property and equipment, gross | 143,046 |  |  | 110,886 |
Less: accumulated depreciation and amortization | (46,378) |  |  | (35,216) |
Total property and equipment, net | $ | 96,668 |  |  | $ | 75,670 |
Depreciation and amortization expense was $4.1 million and $11.4 million for the three and nine months ended September 30, 2023, respectively, and $3.4 million and $9.9 million for the three and nine September 30, 2022, respectively, of which amortization related to internal-use software, was $3.1 million and $8.6 million, for the three and nine months ended September 30, 2023, respectively, and $2.5 million and $7.2 million for the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2023, internal-use software, both in service and in development, increased by $7.8 million and $24.5 million, respectively. This increase related to enhancements in 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):
| September 30, 2023 |  | December 31, 2022
Accrued payroll and related expenses | $ | 38,458 |  |  | $ | 34,752 |
Accrued vacation | 10,050 |  |  | 8,608 |
Accrued expenses | 13,811 |  |  | 7,006 |
Claims payable | 5,295 |  |  | 4,464 |
Accrued employee share purchase plan contributions | 2,863 |  |  | 1,045 |
Accrued income and sales taxes | 3,071 |  |  | 2,388 |
Accrued professional services fees | 3,083 |  |  | 7,234 |
Total accrued liabilities | $ | 76,631 |  |  | $ | 65,497 |
During the year ended December 31, 2022 and the nine months ended September 30, 2023, the Company has incurred expenses in connection with efforts to further globalize its operational footprint and expects to continue to incur such expenses through mid-2024. Included above in accrued payroll and related expenses as of September 30, 2023, were $4.0 million of costs related to globalization.

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 210 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//210/tableOfContent + Details
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