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Balance Sheet Details | 9 Months Ended
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Oct. 02, 2021
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Details | Balance Sheet Details Accounts receivable, net consisted of the following (in thousands):
|  | October 2, 2021 |  | December 31, 2020
Accounts receivable |  | $ | 92,703 |  |  | $ | 70,824 |
Allowance for doubtful accounts |  | (774) |  |  | (1,405) |
|  | $ | 91,929 |  |  | $ | 69,419 |
Inventory consisted of the following (in thousands):
|  | October 2, 2021 |  | December 31, 2020
Raw materials |  | $ | 169 |  |  | $ | 34 |
Finished goods |  | 74,997 |  |  | 52,234 |
|  | $ | 75,166 |  |  | $ | 52,268 |
Property and equipment, net consisted of the following (in thousands):
|  | October 2, 2021 |  | December 31, 2020
Test equipment |  | $ | 38,876 |  |  | $ | 37,670 |
Software |  | 14,440 |  |  | 16,093 |
Computer equipment |  | 10,594 |  |  | 9,062 |
Furniture and fixtures |  | 1,733 |  |  | 2,069 |
Leasehold improvements |  | 1,189 |  |  | 1,345 |
Total |  | 66,832 |  |  | 66,239 |
Accumulated depreciation and amortization |  | (45,872) |  |  | (45,858) |
|  | $ | 20,960 |  |  | $ | 20,381 |
Other long-term assets consisted of the following (in thousands):
|  | October 2, 2021 |  | December 31, 2020
Intangible asset |  | $ | 7,543 |  |  | $ | 9,517 |
Other long-term assets |  | 3,471 |  |  | 2,648 |
|  | $ | 11,014 |  |  | $ | 12,165 |
Intangible Asset Acquisition In March 2018, and as amended in December 2020, the Company entered into an agreement with a vendor to develop a certain software product and related enhancements pursuant to which the Company is obligated to make revenue-share payments under the program, subject to aggregate fixed revenue-share payments of $15.8 million. The payments are based on a revenue-share rate applied to revenue from the developed-product and the corresponding hardware sales through March 2024. If the minimum revenue-share payments are not achieved by the end of that period, a true-up payment will be due. The Company had its first sale in August 2019, and as a result, the Company capitalized an intangible asset with a value of $13.2 million in the third quarter of 2019 and also recognized a liability of $13.2 million (a non-cash investing activity). The intangible asset has an estimated five-year useful life and is being amortized using the greater of the ratio of current gross revenue for the products to the total of current and anticipated future gross revenue for the products or the straight-line method. As of October 2, 2021, the liability, including accrued interest, was $13.6 million of which $4.4 million is included in accrued liabilities and $9.2 million in other long-term liabilities in the accompanying Condensed Consolidated Balance Sheet. As of December 31, 2020, the liability, including accrued interest, was $13.9 million of which $2.9 million was included in accrued liabilities and $11.0 million in other long-term liabilities. Accrued liabilities consisted of the following (in thousands):
|  | October 2, 2021 |  | December 31, 2020
Compensation and related benefits |  | $ | 14,261 |  |  | $ | 23,740 |
Warranty and retrofit |  | 10,126 |  |  | 9,208 |
Component inventory held by suppliers |  | 4,606 |  |  | 3,992 |
Professional and consulting fees |  | 4,595 |  |  | 4,497 |
Taxes payable |  | 4,482 |  |  | 3,476 |
Current portion of revenue share obligations |  | 4,397 |  |  | 2,925 |
Customer advances or rebates |  | 4,358 |  |  | 8,374 |
Operating leases |  | 3,151 |  |  | 2,994 |
Freight |  | 2,587 |  |  | 1,955 |
Product returns |  | 1,749 |  |  | 1,888 |
Operations |  | 1,286 |  |  | 950 |
Other |  | 5,846 |  |  | 4,737 |
|  | $ | 61,444 |  |  | $ | 68,736 |
Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands):
|  | Three Months Ended |  | Nine Months Ended
|  | October 2, 2021 |  | September 26, 2020 |  | October 2, 2021 |  | September 26, 2020
Balance at beginning of period |  | $ | 9,911 |  |  | $ | 7,732 |  |  | $ | 9,208 |  |  | $ | 7,294 |
Provision for warranty and retrofit charged to cost of revenue |  | 769 |  |  | 1,716 |  |  | 2,974 |  |  | 4,341 |
Utilization of reserve |  | (554) |  |  | (892) |  |  | (2,056) |  |  | (3,079) |
Balance at end of period |  | $ | 10,126 |  |  | $ | 8,556 |  |  | $ | 10,126 |  |  | $ | 8,556 |
Accrued Restructuring Charges Responding to trends caused by the COVID-19 pandemic, the Company initiated a restructuring plan in June 2020 to accelerate the Company’s All Platform future and to align with a work-from-anywhere culture. The Company incurred restructuring charges of approximately $6.3 million, consisting of facilities-related charges and severance and other termination-related benefits during 2020. As part of the Company’s shift to a work-from-anywhere culture, many of the Company’s employees elected to work remotely on a permanent basis. In light of this change, the Company evaluated its space needs and determined that a portion of the Company’s leased office spaces in Richardson, Texas and San Jose, California would no longer be utilized. As a result, the right-of-use assets related to these leases were written down, resulting in a charge of $3.5 million during 2020. In addition, the Company wrote off assets with net book value of $0.3 million and accrued common areas maintenance fees and property taxes related to the unused office space totaling $1.4 million during 2020. The following table summarizes restructuring activities (in thousands):
|  | Facilities |  | Severance and Related Benefits |  | Total
Balance as of December 31, 2020 |  | $ | 1,244 |  |  | $ | 132 |  |  | $ | 1,376 |
Cash payments |  | (193) |  |  | (132) |  |  | (325) |
Balance as of October 2, 2021 |  | $ | 1,051 |  |  | $ | — |  |  | $ | 1,051 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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