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Balance Sheet Components

12 Months Ended

Dec. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Note 3. Balance Sheet Components

Inventories

	As of
	December 31, 2021		December 31, 2020
	(In thousands)
Raw materials	$	12,269	$	7,756
Finished goods		303,398		164,356
Total	$	315,667	$	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 $3.9 million, $7.9 million and $3.9 million for the years ended December 31, 2021, 2020 and 2019, 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
	December 31, 2021			December 31, 2020
	(In thousands)
Computer equipment	$	9,979		$	10,550
Furniture, fixtures and leasehold improvements		18,364			18,674
Software		30,280			29,499
Machinery and equipment		75,559			72,156
Total property and equipment, gross		134,182			130,879
Accumulated depreciation		(120,847	)		(114,799	)
Total	$	13,335		$	16,080

Depreciation expense pertaining to property and equipment was $11.7 million, $12.7 million and $12.3 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Intangibles, net

	As of December 31, 2021							As of December 31, 2020
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(In thousands)
Technology	$	59,799	$	(58,263	)	$	1,536	$	59,799	$	(57,835	)	$	1,964
Customer contracts and relationships		56,800		(56,800	)		—		56,800		(55,534	)		1,266
Other		10,345		(10,025	)		320		10,345		(9,676	)		669
Total	$	126,944	$	(125,088	)	$	1,856	$	126,944	$	(123,045	)	$	3,899

Amortization of purchased intangibles in the years ended December 31, 2021, 2020 and 2019 was $2.0 million, $6.2 million and $7.0 million, respectively. No impairment charges were recorded in the years ended December 31, 2021, 2020 and 2019.

As of December 31, 2021, estimated amortization expense related to finite-lived intangibles for each of the remaining years was as follows (in thousands):

2022	$	528
2023		514
2024		514
2025		300
Total	$	1,856

Other non-current assets

	As of
	December 31, 2021		December 31, 2020
	(In thousands)
Non-current deferred income taxes	$	63,795	$	68,323
Long-term investments		7,575		8,395
Other		4,980		6,032
Total	$	76,350	$	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 were as follows (in thousands):

Carrying value, as of December 31, 2019	$	8,147
Additions		5,850
Impairment and downward adjustments for observable price changes		(6,239	)
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

⁽¹⁾	The balances excluded the investment in limited partnership fund of $0.9 million and $0.6 million, as of December 31, 2021 and 2020, respectively. Additionally, the balance as of December 31, 2021 excluded an investment in convertible debt securities of $0.3 million.

For the equity investments without readily determinable fair values as of December 31, 2021, cumulative downward adjustments for price changes and impairment was $8.4 million and cumulative upward adjustments for price changes was $0.4 million.

Other accrued liabilities

	As of
	December 31, 2021		December 31, 2020
	(In thousands)
Current operating lease liabilities	$	9,220	$	9,149
Sales and marketing		104,549		83,561
Warranty obligations		6,861		9,240
Sales returns⁽¹⁾		42,869		66,972
Freight and duty		22,126		14,885
Other		38,959		34,568
Total	$	224,584	$	218,375

________________________

⁽¹⁾

Inventory expected to be received from future sales returns amounted to $21.8 million and $32.6 million as of December 31, 2021 and 2020, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $13.2 million and $18.0 million as of December 31, 2021 and December 31, 2020, respectively.