Balance Sheet Details

3 Months Ended

Mar. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Cash, cash equivalents and restricted cash consist of the following:


	March 31, 2024		December 31, 2023
	(in thousands)
Cash and cash equivalents	$	191,882	$	187,288
Short-term restricted cash	1,028		1,051
Long-term restricted cash	20		17
Total cash, cash equivalents and restricted cash	$	192,930	$	188,356

As of March 31, 2024 and December 31, 2023, cash and cash equivalents included money market funds of approximately $110.9 million and $78.1 million, respectively. As of March 31, 2024 and December 31, 2023, the Company had restricted cash of approximately $1.0 million and $1.1 million, respectively. The cash is restricted in connection with guarantees for certain import duties and office leases.

Inventory consists of the following:


	March 31, 2024		December 31, 2023
	(in thousands)

Work-in-process	$	58,676	$	60,368
Finished goods	37,449		39,540


	$	96,125	$	99,908

Property and equipment, net consists of the following:


	Useful Life (in Years)	March 31, 2024		December 31, 2023
		(in thousands)
Furniture and fixtures	5	$	3,958	$	3,995
Machinery and equipment	3-5	78,070		76,732
Masks and production equipment	2-5	59,948		54,240
Software	3	11,590		11,427
Leasehold improvements	1-5	34,712		35,867
Construction in progress	N/A	570		348
		188,848		182,609
Less: accumulated depreciation and amortization		(120,510)		(116,178)
		$	68,338	$	66,431

Depreciation expense for the three months ended March 31, 2024 and 2023 was $5.5 million and $6.4 million, respectively.

In March 2022, the Company entered into a note receivable with a supplier for $10.0 million which is included in other long-term assets as of March 31, 2024 and December 31, 2023, respectively. In September 2023, the terms of this note receivable were renegotiated, and the first initial repayment of $1.5 million is now due by March 31, 2025, and annual repayments of $1.7 million per year are due annually thereafter by March 31, from 2026 through 2030, provided that certain production utilization targets for the prior year are met. Previously, repayments of $2.0 million per year were due annually by March 31, in years 2024 through 2027.

Accrued price protection liability consists of the following activity:


	Three Months Ended March 31,
	2024		2023
	(in thousands)
Beginning balance	$	71,684	$	113,274

Charged as a reduction of revenue	12,132		28,536

Payments	(18,583)		(38,013)
Ending balance	$	65,233	$	103,797

The decrease in price protection liability from approximately $71.7 million as of December 31, 2023 to approximately $65.2 million as of March 31, 2024 was driven by increased sell-through activity by distributors to their end customers.

Accrued expenses and other current liabilities consist of the following:


	March 31, 2024		December 31, 2023
	(in thousands)


Accrued technology license payments	$	4,540	$	3,843
Accrued professional fees	4,921		3,736
Accrued engineering and production costs	5,620		2,861
Accrued restructuring	21,603		8,301

Accrued royalty	348		603
Short-term lease liabilities	9,167		9,132

Accrued customer credits	5,564		3,984

Income tax liability	379		521
Customer contract liabilities	1,597		1,597
Accrued obligations to customers for price adjustments	36,811		54,837
Accrued obligations to customers for stock rotation rights	401		349
Contingent consideration - current portion	2,535		2,462
Other	4,646		6,242
	$	98,132	$	98,468

The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component:


	Cumulative Translation Adjustments		Pension and Other Defined Benefit Plan Obligation		Total
	(in thousands)
Balance at December 31, 2023	$	(5,059)	$	1,268	$	(3,791)
Other comprehensive income (loss) before reclassifications, net of tax	(1,782)		—		(1,782)


Balance at March 31, 2024	$	(6,841)	$	1,268	$	(5,573)