Balance Sheet Components

3 Months Ended

Mar. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Note 4. Balance Sheet Components

Available-for-sale investments

Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of March 31, 2024 and December 31, 2023, were as follows:


	March 31, 2024
(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. treasury securities	$	108,138	$	—	$	(38	)	$	108,100
Convertible debt		173		—		—			173
Total	$	108,311	$	—	$	(38	)	$	108,273


	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		173		—		—		173
Total	$	98,499	$	128	$	—	$	98,627

The contractual maturities on the U.S. treasury securities as of March 31, 2024 are all due within one year. Accrued interest receivable as of March 31, 2024 was $0.5 million and was recorded within Prepaid expenses and other current assets on the unaudited condensed consolidated balance sheet.

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 March 31, 2024 and December 31, 2023:


	March 31, 2024
	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	$	108,100	$	(38	)	$	—	$	—	$	108,100	$	(38	)
Total	$	108,100	$	(38	)	$	—	$	—	$	108,100	$	(38	)


	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	$	—

In the three months ended March 31, 2024 and April 2, 2023, 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 three months ended March 31, 2024 and April 2, 2023. Refer to Note 12, Fair Value Measurements, for detailed disclosures regarding fair value measurements.

Inventories


(In thousands)	March 31, 2024		December 31, 2023
Raw materials	$	21,714	$	19,955
Finished goods		189,556		228,896
Total	$	211,270	$	248,851

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions and the amounts incurred were $1.1 million and $1.2 million for the three months ended March 31, 2024 and April 2, 2023, 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)	March 31, 2024			December 31, 2023
Computer equipment	$	5,335		$	5,458
Furniture, fixtures, and leasehold improvements		18,637			18,205
Software		24,428			25,760
Machinery and equipment		49,442			47,826
Total property and equipment, gross		97,842			97,249
Accumulated depreciation		(88,489	)		(88,976	)
Total	$	9,353		$	8,273

Other non-current assets


(In thousands)	March 31, 2024		December 31, 2023
Non-current deferred income taxes	$	3,251	$	3,343
Long-term investments		8,266		8,367
Other		5,777		5,616
Total	$	17,294	$	17,326

Long-term equity 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:


	Three months ended
(In thousands)	March 31, 2024		April 2, 2023
Carrying value as of the beginning of the period (1)	$	6,053	$	6,053
Carrying value as of the end of the period (1)	$	6,053	$	6,053

(1)

The balances excluded an investment in limited partnership funds of $2.2 million as of March 31, 2024, $1.6 million as of April 2, 2023, $2.3 million as of December 31, 2023, and $1.7 million as of December 31, 2022. Additionally, the balance excluded an investment in convertible debt securities of $0.2 million as of March 31, 2024, December 31, 2023, April 2, 2023, and December 31, 2022, respectively.

For such equity investments without readily determinable fair values still held at March 31, 2024, 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)	March 31, 2024		December 31, 2023
Current operating lease liabilities	$	11,306	$	11,869
Sales and marketing		65,725		75,535
Warranty obligations		5,087		5,738
Sales returns(1)		35,713		34,824
Freight and duty		3,412		2,837
Other		33,324		37,281
Total	$	154,567	$	168,084

(1)

Inventory expected to be received from future sales returns amounted to $17.4 million and $16.9 million as of March 31, 2024 and December 31, 2023, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $8.6 million and $9.7 million as of March 31, 2024 and December 31, 2023, respectively.