Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of October 2, 2022, and December 31, 2021, were as follows:

	October 2, 2022
(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. treasury securities	$	94,028	$	—	$	(459	)	$	93,569
Convertible debt ⁽¹⁾		346		—		—			346
Certificates of deposit		6		—		—			6
Total	$	94,380	$	—	$	(459	)	$	93,921


	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

The contractual maturities on the U.S. treasury securities as of October 2, 2022, are all due within one year. Accrued interest receivable as of October 2, 2022, was $0.2 million and was recorded within Prepaid expenses and other current assets on the unaudited condensed consolidated balance sheet.

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 October 2, 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	$	93,569	$	(459	)	$	—	$	—	$	93,569	$	(459	)
Total	$	93,569	$	(459	)	$	—	$	—	$	93,569	$	(459	)

In the three and nine months ended October 2, 2022, and October 3, 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 three and nine months ended October 2, 2022, and October 3, 2021. Refer to Note 12, Fair Value Measurements, for detailed disclosures regarding fair value measurements.

(In thousands)	October 2, 2022		December 31, 2021
Raw materials	$	7,806	$	12,269
Finished goods		290,284		303,398
Total	$	298,090	$	315,667

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions and the amounts incurred were $0.4 million and $3.0 million for the three and nine months ended October 2, 2022, respectively, and $0.7 million and $3.0 million for the three and nine months ended October 3, 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.

(In thousands)	October 2, 2022			December 31, 2021
Computer equipment	$	9,663		$	9,979
Furniture, fixtures, and leasehold improvements		18,419			18,364
Software		30,467			30,280
Machinery and equipment		76,188			75,559
Total property and equipment, gross		134,737			134,182
Accumulated depreciation		(124,507	)		(120,847	)
Total	$	10,230		$	13,335

	October 2, 2022							December 31, 2021
(In thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Technology	$	59,799	$	(58,585	)	$	1,214	$	59,799	$	(58,263	)	$	1,536
Other		10,345		(10,102	)		243		10,345		(10,025	)		320
Total	$	70,144	$	(68,687	)	$	1,457	$	70,144	$	(68,288	)	$	1,856

Amortization of purchased intangibles was $0.1 million and $0.4 million for the three and nine months ended October 2, 2022, respectively, and $0.2 million and $1.9 million for the three and nine months ended October 3, 2021, respectively. During the three months ended April 3, 2022, the Company identified a triggering event for assessing impairment of the intangibles (Refer to below “Goodwill” for details of the triggering event). The Company performed a recoverability test of its intangibles and determined that the carrying amount of such assets was recoverable. No impairment of the intangibles was recognized in the three and nine months ended October 2, 2022 and October 3, 2021.

(In thousands)	Connected Home			SMB		Total
As of December 31, 2021	$	44,442		$	36,279	$	80,721
Goodwill impairment charge		(44,442	)		—		(44,442	)
As of October 2, 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, and an interim goodwill impairment assessment was performed for both of its reporting units. 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. 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.

(In thousands)	October 2, 2022		December 31, 2021
Non-current deferred income taxes	$	77,685	$	63,795
Long-term investments		7,749		7,575
Other		4,401		4,980
Total	$	89,835	$	76,350

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:

	Nine Months Ended
(In thousands)	October 2, 2022			October 3, 2021
Carrying value as of the beginning of the period ⁽¹⁾	$	6,303		$	7,758
Additions from purchase of investments		—			340
Disposal		—			(778	)
Impairment		(250	)		(549	)
Carrying value as of the end of the period ⁽¹⁾	$	6,053		$	6,771

For equity investments without readily determinable fair values as of October 2, 2022, the cumulative downward adjustments for price changes and impairment was $8.7 million and cumulative upward adjustments for price changes was $0.4 million.

(In thousands)	October 2, 2022		December 31, 2021
Current operating lease liabilities	$	9,857	$	9,220
Sales and marketing		94,234		104,549
Warranty obligations		6,144		6,861
Sales returns⁽¹⁾		40,241		42,869
Freight and duty		9,301		22,126
Other		42,431		38,959
Total	$	202,208	$	224,584