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Balance Sheet Components
9 Months Ended
Oct. 03, 2021
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components

Note 4. Balance Sheet Components

Inventories

 

 

 

As of

 

 

 

October 3, 2021

 

 

December 31, 2020

 

 

 

(In thousands)

 

Raw materials

 

$

12,117

 

 

$

7,756

 

Finished goods

 

 

293,012

 

 

 

164,356

 

Total

 

$

305,129

 

 

$

172,112

 

 

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions and the amounts incurred were $0.7 million and $3.0 million for the three and nine months ended October 3, 2021, respectively, and $1.8 million and $6.4 million for the three and nine months ended September 27, 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

 

 

 

As of

 

 

 

October 3, 2021

 

 

December 31, 2020

 

 

 

(In thousands)

 

Computer equipment

 

$

9,875

 

 

$

10,550

 

Furniture, fixtures and leasehold improvements

 

 

18,342

 

 

 

18,674

 

Software

 

 

30,155

 

 

 

29,499

 

Machinery and equipment

 

 

74,529

 

 

 

72,156

 

Total property and equipment, gross

 

 

132,901

 

 

 

130,879

 

Accumulated depreciation

 

 

(118,172

)

 

 

(114,799

)

Total

 

$

14,729

 

 

$

16,080

 

 

Depreciation expense pertaining to property and equipment was $2.8 million and $8.8 million for the three and nine months ended October 3, 2021, respectively, and $3.3 million and $9.5 million for the three and nine months ended September 27, 2020, respectively.

Intangibles, net

 

 

 

As of October 3, 2021

 

 

As of December 31, 2020

 

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

 

 

(In thousands)

 

Technology

 

$

59,799

 

 

$

(58,156

)

 

$

1,643

 

 

$

59,799

 

 

$

(57,835

)

 

$

1,964

 

Customer contracts and relationships

 

 

56,800

 

 

 

(56,800

)

 

 

 

 

 

56,800

 

 

 

(55,534

)

 

 

1,266

 

Other

 

 

10,345

 

 

 

(9,996

)

 

 

349

 

 

 

10,345

 

 

 

(9,676

)

 

 

669

 

Total

 

$

126,944

 

 

$

(124,952

)

 

$

1,992

 

 

$

126,944

 

 

$

(123,045

)

 

$

3,899

 

 

Amortization of purchased intangibles was $0.2 million and $1.9 million for the three and nine months ended October 3, 2021, respectively, and $1.5 million and $4.7 million for the three and nine months ended September 27, 2020, respectively.

 

Other non-current assets

 

 

 

As of

 

 

 

October 3, 2021

 

 

December 31, 2020

 

 

 

(In thousands)

 

Non-current deferred income taxes

 

$

63,479

 

 

$

68,323

 

Long-term investments

 

 

7,916

 

 

 

8,395

 

Other

 

 

5,091

 

 

 

6,032

 

Total

 

$

76,486

 

 

$

82,750

 

 

 

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 during the periods represented were as follows:

 

Nine Months Ended

 

 

October 3,

2021

 

 

September 27,

2020

 

 

(In thousands)

 

Carrying value as of the beginning of the period (1)

$

7,758

 

 

$

8,147

 

Additions from purchase of investments

 

340

 

 

 

5,850

 

Disposal

 

(778

)

 

 

 

Impairment

 

(549

)

 

 

(5,372

)

Carrying value as of the end of the period (1)

$

6,771

 

 

$

8,625

 

 

(1)The balances excluded an investment in limited partnership funds of $0.8 million, $0.4 million and $0.6 million as of October 3, 2021, September 27, 2020 and December 31, 2020, respectively. Additionally, the balance as of October 3, 2021 excluded an investment in convertible debt securities of $0.3 million.

For the equity investments without readily determinable fair values as of October 3, 2021, cumulative downward adjustments for price changes and impairment was $8.4 million and cumulative upward adjustments for price changes was $0.2 million.

 

Other accrued liabilities

 

 

 

As of

 

 

 

October 3, 2021

 

 

December 31, 2020

 

 

 

(In thousands)

 

Current operating lease liabilities

 

$

8,887

 

 

$

9,149

 

Sales and marketing

 

 

107,110

 

 

 

83,561

 

Warranty obligations

 

 

6,863

 

 

 

9,240

 

Sales returns (1)

 

 

50,771

 

 

 

66,972

 

Freight and duty

 

 

15,600

 

 

 

14,885

 

Other

 

 

40,945

 

 

 

34,568

 

Total

 

$

230,176

 

 

$

218,375

 

 

(1)Inventory expected to be received from future sales returns amounted to $24.8 million and $32.6 million as of October 3, 2021 and December 31, 2020, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $15.3 million and $18.0 million as of October 3, 2021 and December 31, 2020, respectively.