Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of December 31, 2023, and December 31, 2022, were as follows:


	December 31, 2023
(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. treasury securities	$	98,326	$	128	$	—	$	98,454
Convertible debt (1)		173		—		—		173
Total	$	98,499	$	128	$	—	$	98,627



	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

(1)

On the Company’s consolidated balance sheets, $173,000 included in Short-term investments as of December 31, 2023, and December 31, 2022, respectively, and $173,000 included in Other non-current assets as of December 31, 2022.

The contractual maturities on the U.S. treasury securities as of December 31, 2023, are all due within one year. Accrued interest receivable as of December 31, 2023, 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, 2023. 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, 2023 and 2022, respectively:


	December 31, 2023
	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	$	98,454	$	—	$	—	$	—	$	98,454	$	—
Total	$	98,454	$	—	$	—	$	—	$	98,454	$	—


	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, 2023, 2022 and 2021, 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, 2023, 2022 and 2021. Refer to Note 12, Fair Value Measurements, for detailed disclosures regarding fair value measurements.

Inventories


(In thousands)	December 31, 2023		December 31, 2022
Raw materials	$	19,955	$	4,549
Finished goods		228,896		295,065
Total	$	248,851	$	299,614

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and the amounts incurred were $3.2 million, $3.7 million and $3.9 million for the years ended December 31, 2023, 2022 and 2021, 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, 2023			December 31, 2022
Computer equipment	$	5,458		$	9,648
Furniture, fixtures, and leasehold improvements		18,205			18,642
Software		25,760			30,610
Machinery and equipment		47,826			76,806
Total property and equipment, gross		97,249			135,706
Accumulated depreciation		(88,976	)		(126,481	)
Total	$	8,273		$	9,225

Depreciation expense pertaining to property and equipment was $6.9 million, $9.5 million and $11.7 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Intangibles, net


	December 31, 2023										December 31, 2022
(In thousands)	Gross		Accumulated Amortization			Impairment			Net		Gross		Accumulated Amortization			Net
Technology	$	59,799	$	(58,906	)	$	(893	)	$	—	$	59,799	$	(58,692	)	$	1,107
Other		10,345		(10,167	)		(178	)		—		10,345		(10,123	)		222
Total	$	70,144	$	(69,073	)	$	(1,071	)	$	—	$	70,144	$	(68,815	)	$	1,329

Amortization of purchased intangibles in the years ended December 31, 2023, 2022 and 2021 was $0.3 million, $0.5 million and $2.0 million, respectively.

During the third fiscal quarter of 2023, the Company identified a triggering event indicating that the carrying amount of the intangibles may be impaired (Refer to below “Goodwill” for details of the triggering event). The Company performed a recoverability test of its intangible assets based on estimated future net undiscounted cash flows expected to be generated from the use of the long-lived asset group and determined that the carrying amount of such asset group was not recoverable. Therefore, in the third fiscal quarter of 2023, the Company recognized an intangible asset impairment charge of $1.1 million for its Connected Home reporting unit. No intangibles impairment was recorded in the years ended December 31, 2022 and 2021.

Goodwill


(In thousands)	Connected Home			NETGEAR for Business		Total
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
As of December 31, 2023	$	—		$	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 third fiscal quarter of 2023, the Company reassessed the valuation allowance for the deferred tax assets and determined to establish a full valuation allowance on its U.S. deferred tax assets (refer to Note 7, Income Taxes for detailed disclosures regarding the valuation allowance on deferred tax assets). Additionally, the Company experienced a reduction in its market capitalization. Due to these factors, the Company determined that a triggering event had occurred, and an interim goodwill impairment assessment was performed. Prior to performing a goodwill impairment test, the Company assessed its long-lived assets and concluded the carrying amount of the intangible assets for its Connected Home reporting unit was not recoverable as noted above. No other impairments of long-lived assets were identified. The Company elected to bypass the qualitative goodwill impairment assessment and proceeded directly to the quantitative test, measured as of October 1, 2023. Further, the Company completed its annual impairment test of goodwill as of the first day of the fourth fiscal quarter of 2023, or October 2, 2023. The Company identified the reporting units for the purpose of goodwill impairment testing still as Connected Home and NETGEAR for Business.

The fair values of the reporting units were determined using an income and market approach. Under the income approach, the Company calculated the fair values 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 NETGEAR for Business reporting unit substantially exceeded its carrying amount, including

goodwill, thus no goodwill impairment was recognized in the year ended December 31, 2023. An interim goodwill impairment test performed in the first fiscal quarter of 2022 resulted in an impairment charge of $44.4 million in respect to our Connected Home reporting unit, which reduced the goodwill of this reporting unit to zero. No goodwill impairment was recognized for our NETGEAR for Business reporting unit in the year ended December 31, 2022 and no goodwill impairment was recognized for our Connected Home and NETGEAR for Business reporting units in the year ended December 31, 2021. Accumulated goodwill impairment charges as of December 31, 2023 was $44.4 million for the Connected Home reporting unit and zero for the NETGEAR for Business reporting unit.

Other non-current assets


(In thousands)	December 31, 2023		December 31, 2022
Non-current deferred income taxes	$	3,343	$	85,704
Long-term investments		8,367		7,879
Other		5,616		4,210
Total	$	17,326	$	97,793

For such equity investments without readily determinable fair values still held at December 31, 2023, 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, 2023		December 31, 2022
Current operating lease liabilities	$	11,869	$	11,012
Sales and marketing		75,535		98,690
Warranty obligations		5,738		6,320
Sales returns(1)		34,824		44,944
Freight and duty		2,837		7,243
Other		37,281		45,267
Total	$	168,084	$	213,476

________________________

(1)

Inventory expected to be received from future sales returns amounted to $16.9 million and $21.8 million as of December 31, 2023 and 2022, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $9.7 million and $11.8 million as of December 31, 2023 and December 31, 2022, respectively.