Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of December 31, 2022, and December 31, 2021, were as follows:


	December 31, 2022
(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. treasury securities	$	74,120	$	—	$	(320	)	$	73,800
Convertible debt (1)		346		—		—			346
Certificates of deposit		6		—		—			6
Total	$	74,472	$	—	$	(320	)	$	74,152



	December 31, 2021
(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Corporate equity securities	$	751	$	—	$	—	$	751
Convertible debt (1)		518		—		—		518
Certificates of deposit		6		—		—		6
Total	$	1,275	$	—	$	—	$	1,275

(1)

On the Company’s consolidated balance sheets, $173,000 included in Short-term investments as of December 31, 2022, and December 31, 2021, and $173,000 and $346,000 included in Other non-current assets as of December 31, 2022, and December 31, 2021, respectively.

The contractual maturities on the U.S. treasury securities as of December 31, 2022, are all due within one year. Accrued interest receivable as of December 31, 2022, was insignificant and was recorded within Prepaid expenses and other current assets on the consolidated balance sheets.

The Company had no investments classified as available-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of December 31, 2021. The following table summarizes investments classified as available-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of December 31, 2022:


	Less Than 12 Months					12 Months or Longer				Total
(In thousands)	Estimated Fair Market Value		Gross Unrealized Losses			Estimated Fair Market Value		Gross Unrealized Losses		Estimated Fair Market Value		Gross Unrealized Losses
U.S. treasury securities	$	73,800	$	(320	)	$	—	$	—	$	73,800	$	(320	)
Total	$	73,800	$	(320	)	$	—	$	—	$	73,800	$	(320	)

In the years ended December 31, 2022, 2021 and 2020, no unrealized losses on available-for-sale securities were recognized in income. The Company does not intend to sell, and it is unlikely that it will be required to sell the investments in an unrealized loss position prior to their anticipated recovery. The investments are high quality U.S. treasury securities and the decline in fair value is largely due to changes in interest rates and other market conditions with the fair value expected to recover as they reach maturity. There were no other-than-temporary impairments for these securities during the years ended December 31, 2022, 2021 and 2020. Refer to Note 12, Fair Value Measurements, for detailed disclosures regarding fair value measurements.

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and the amounts incurred were $3.7 million, $3.9 million and $7.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts are greater than actual demand.

Property and equipment, net


(In thousands)	December 31, 2022			December 31, 2021
Computer equipment	$	9,648		$	9,979
Furniture, fixtures, and leasehold improvements		18,642			18,364
Software		30,610			30,280
Machinery and equipment		76,806			75,559
Total property and equipment, gross		135,706			134,182
Accumulated depreciation		(126,481	)		(120,847	)
Total	$	9,225		$	13,335

Depreciation expense pertaining to property and equipment was $9.5 million, $11.7 million and $12.7 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Intangibles, net


	December 31, 2022							December 31, 2021
(In thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Technology	$	59,799	$	(58,692	)	$	1,107	$	59,799	$	(58,263	)	$	1,536
Customer contracts and relationships		56,800		(56,800	)		—		56,800		(56,800	)		—
Other		10,345		(10,123	)		222		10,345		(10,025	)		320
Total	$	126,944	$	(125,615	)	$	1,329	$	126,944	$	(125,088	)	$	1,856

Amortization of purchased intangibles in the years ended December 31, 2022, 2021 and 2020 was $0.5 million, $2.0 million and $6.2 million, respectively. No impairment charges were recorded in the years ended December 31, 2022, 2021 and 2020.

Goodwill


(In thousands)	Connected Home			SMB		Total
As of December 31, 2020	$	44,442		$	36,279	$	80,721
As of December 31, 2021		44,442			36,279		80,721
Goodwill impairment charge		(44,442	)		—		(44,442	)
As of December 31, 2022	$	—		$	36,279	$	36,279

Each year on the first day of fourth fiscal quarter, the Company assesses its goodwill for potential impairment. This impairment testing is applied more frequently than once a year if the Company is aware of changed conditions or circumstances since the last impairment testing that might call into question whether the current balances are fairly recorded. During the first quarter of 2022, the market price of the Company’s common stock and its market capitalization declined significantly. In addition, with a decline in the size of the U.S. WiFi market, sales of the

Company’s Connected Home products in the first fiscal quarter of 2022 were significantly lower than anticipated. Due to these factors, the Company determined that a triggering event had occurred, indicating a potential impairment of goodwill and/or long-lived assets. Prior to performing a goodwill impairment test for both of its reporting units, the Company assessed its long-lived assets and concluded that they were not impaired. The Company elected to bypass the qualitative goodwill impairment assessment and proceeded directly to the quantitative test, measured as of April 3, 2022.

The fair value of the reporting units, namely Connected Home and SMB, was determined using an income and market approach. Under the income approach, the Company calculated the fair value of its reporting units based on the present value of estimated future cash flows. Cash flow projections were based on management's estimates of revenue growth rates and net operating income margins, taking into consideration market and industry conditions. The discount rate used was based on the weighted-average cost of capital adjusted for the risk, size premium, and business-specific characteristics related to the business's ability to execute on the projected cash flows. Under the market approach, the Company evaluated the fair value based on forward-looking earnings multiples derived from comparable publicly-traded companies with similar market position and size as the reporting unit. The underlying unobservable inputs used to measure the fair value included projected revenue growth rates, the weighted average cost of capital, the normalized working capital level, capital expenditures assumptions, profitability projections, control premium, the determination of appropriate market comparison companies and terminal growth rates. The two approaches generated similar results and indicated that the fair value of the Connected Home reporting unit was less than its carrying amount, including goodwill, and the difference between the carrying amount and the fair value was greater than the carrying amount of the goodwill allocated to the reporting unit. Therefore, in the first fiscal quarter of 2022, the Company recognized an impairment charge of $44.4 million for its Connected Home reporting unit, which reduced the goodwill of this reporting unit to zero. The results of the quantitative test indicated that the fair value of the SMB reporting unit substantially exceeded its carrying amount, including goodwill, thus no goodwill impairment was recognized.

Further, the Company completed its annual impairment test of goodwill as of the first day of the fourth fiscal quarter of 2022, or October 3, 2022. The Company identified the reporting units for the purpose of goodwill impairment testing still as Connected Home and SMB and performed a qualitative test on the SMB reporting unit. Based upon the results of the qualitative testing, the Company believed that it was more-likely-than-not that the fair value of the SMB reporting unit was greater than its carrying value and therefore performing the next step of impairment test for this reporting unit was unnecessary. No goodwill impairment was recognized for the SMB reporting unit in the years ended December 31, 2022. No goodwill impairment was recognized for the Connected Home and SMB reporting units in the year ended December 31, 2021 or 2020. Accumulated goodwill impairment charges as of December 31, 2022 was $44.4 million for the Connected Home reporting unit and zero for the SMB reporting unit.

Other non-current assets


(In thousands)	December 31, 2022		December 31, 2021
Non-current deferred income taxes	$	85,704	$	63,795
Long-term investments		7,879		7,575
Other		4,210		4,980
Total	$	97,793	$	76,350

Long-term investments

The Company’s long-term investments are comprised of equity investments without readily determinable fair values, investments in convertible debt securities and investments in limited partnership funds. The changes in the carrying value of equity investments without readily determinable fair values were as follows (in thousands):


Carrying value, as of December 31, 2020 (1)	$	7,758
Additions		340
Disposals		(1,499	)
Impairment		(549	)
Upward adjustments for observable price changes		253
Carrying value, as of December 31, 2021 (1)		6,303
Impairment		(250	)
Carrying value, as of December 31, 2022 (1)	$	6,053

For such equity investments without readily determinable fair values still held at December 31, 2022, there were no cumulative downward adjustments for price changes and impairment and the cumulative upward adjustments for price changes was $0.3 million.

Other accrued liabilities


(In thousands)	December 31, 2022		December 31, 2021
Current operating lease liabilities	$	11,012	$	9,220
Sales and marketing		98,690		104,549
Warranty obligations		6,320		6,861
Sales returns(1)		44,944		42,869
Freight and duty		7,243		22,126
Other		45,267		38,959
Total	$	213,476	$	224,584

________________________

(1)

Inventory expected to be received from future sales returns amounted to $21.8 million as of December 31, 2022 and 2021. Provisions to write down expected returned inventory to net realizable value amounted to $11.8 million and $13.2 million as of December 31, 2022 and December 31, 2021, respectively.