Composition of Certain Balance Sheet Accounts

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

Inventories consist primarily of telecommunications systems and parts and are recorded at the lower of average cost or net realizable value. We evaluate the need for write-downs associated with obsolete, slow-moving and nonsalable inventory by reviewing net realizable inventory values on a periodic basis. As a result of our determination to participate in the FCC Reimbursement Program (as defined and described in Note 16, “Government Assistance”), the Company wrote down the net realizable value of certain inventory by approximately $1.3 million for the three-month period ended March 31, 2023. The write-off charge is included in Cost of equipment revenue in our Unaudited Condensed Consolidated Statements of Operations.

Inventories as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Work-in-process component parts	$	36,362	$	34,840
Finished goods		18,134		14,653
Total inventory	$	54,496	$	49,493

Prepaid expenses and other current assets as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Interest rate caps and receivable	$	27,113	$	28,496
Contract assets		6,796		6,494
Prepaid inventories		2,917		2,901
Other		9,433		7,209
Total prepaid expenses and other current assets	$	46,259	$	45,100

Property and equipment as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,			December 31,
	2023			2022
Office equipment, furniture, fixtures and other	$	17,457		$	17,242
Leasehold improvements		15,419			15,357
Network equipment		180,934			179,363
		213,810			211,962
Accumulated depreciation		(109,125	)		(107,367	)
Total property and equipment, net	$	104,685		$	104,595

Other non-current assets as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Contract assets, net of allowances of $487 and $501, respectively	$	12,530	$	13,376
Interest rate caps		17,639		25,578
Revolving credit facility deferred financing costs		1,338		1,445
Other		2,971		2,956
Total other non-current assets	$	34,478	$	43,355

Accrued liabilities as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Accrued interest	$	10,008	$	9,878
Operating leases		9,445		9,094
Employee compensation and benefits		8,502		19,235
Network equipment		8,434		8,748
Warranty reserve		2,800		2,300
Taxes		2,272		2,282
Other		7,839		8,519
Total accrued liabilities	$	49,300	$	60,056