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Financial Statements Details
 12 Months Ended
Dec. 31, 2022
Balance Sheet Components [Abstract]  
Financial Statement Details Financial Statements Details
Cash, Cash Equivalents and Restricted Cash
The reconciliation of cash, cash equivalents and restricted cash reported in the accompanying consolidated balance sheets to the total of the same such amounts in the accompanying consolidated statements of cash flows is as follows (in thousands):
December 31,
20222021
Cash and cash equivalents$671,707 $620,813 
Restricted cash included in other assets4,271 4,237 
Total cash, cash equivalents and restricted cash$675,978 $625,050 
Accounts Receivable, net
Accounts receivable, net consists of the following (in thousands):
December 31,
20222021
Accounts receivable $928,490 $521,597 
Allowance for doubtful accounts (19)(132)
Product sales rebate and returns reserve(5,375)(4,956)
Accounts receivable, net $923,096 $516,509 
Product Sales Rebate and Returns Reserve
Activities in the product sales rebate and returns reserve consist of the following (in thousands):
 Year Ended December 31,
 202220212020
Balance at the beginning of year$4,956 $3,838 $5,522 
     Additions charged against revenue4,060 7,104 9,454 
     Consumption(3,641)(5,986)(11,138)
Balance at the end of year$5,375 $4,956 $3,838 
Inventories
Inventories consist of the following (in thousands):
December 31,
20222021
Raw materials $759,519 $316,737 
Finished goods 530,187 333,380 
Total inventories $1,289,706 $650,117 
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
December 31,
20222021
Inventory deposits$162,047 $46,311 
Other current assets124,357 172,893 
Other prepaid expenses and deposits27,813 18,531 
Total prepaid expenses and other current assets$314,217 $237,735 
Property and Equipment, net
Property and equipment, net consists of the following (in thousands):
 December 31,
20222021
Land$41,500 $40,145 
Equipment and machinery 122,407 90,915 
Computer hardware and software 52,148 44,083 
Furniture and fixtures 3,575 3,634 
Leasehold improvements 30,102 30,502 
Construction-in-process 2,124 2,378 
Property and equipment, gross 251,856 211,657 
Less: accumulated depreciation (156,847)(133,023)
Property and equipment, net $95,009 $78,634 
Depreciation expense was $25.6 million, $19.5 million and $20.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
 December 31,
20222021
Accrued compensation-related costs$117,053 $99,571 
Supplier Liability71,481 28,203 
Accrued manufacturing costs45,379 52,010 
Accrued product development costs27,380 22,188 
Accrued warranty costs15,510 10,414 
Other15,684 14,257 
Total accrued liabilities $292,487 $226,643 
Warranty Accrual
The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands):
Year Ended December 31,
20222021
Warranty accrual, beginning of year $10,414 $9,314 
Liabilities accrued for warranties issued during the year 19,437 12,659 
Warranty costs incurred during the year (14,341)(11,559)
Warranty accrual, end of year$15,510 $10,414 
Contract Assets
The following table summarizes the beginning and ending balances of our contract assets (in thousands):
Year Ended December 31,
20222021
Contract assets, beginning balance$24,388 $16,380 
Contract assets, ending balance11,055 24,388 
Contract Liabilities, Deferred Revenue and Other Performance Obligations
Contract Liabilities
A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a cancellable contract. The following table summarizes the activity related to our contract liabilities (in thousands):
Year Ended December 31,
20222021
Contract liabilities, beginning balance$93,382 $85,957 
Less: Revenue recognized from beginning balance(37,680)(34,177)
Less: Beginning balance reclassified to deferred revenue(2,693)(1,945)
Add: Contract liabilities recognized50,439 43,547 
Contract liabilities, ending balance$103,448 $93,382 
As of December 31, 2022 and 2021, $45.2 million and $38.7 million, respectively, of our contract liabilities were recorded within other current liabilities with the remaining balance recorded within other long-term liabilities in the accompanying consolidated balance sheets.
Deferred Revenue
Deferred revenue is comprised mainly of unearned revenue related to multi-year PCS contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands):
Year Ended December 31, 2022
Deferred revenue, beginning balance$929,312 
Less: Revenue recognized from beginning balance(583,787)
Add: Deferral of revenue in current period, excluding amounts recognized during the period695,721 
Deferred revenue, ending balance$1,041,246 
Other Performance Obligations
Other performance obligations totaling $1.1 billion include unbilled contract revenue for services and products that will be recognized in future periods. As of December 31, 2022, other performance obligations included $117.6 million of unbilled multi-year PCS contract amounts that will be recognized as revenue in future periods. In addition, as of December 31, 2022 the company had entered into $961.0 million of binding contractual agreements with certain customers that are primarily related to future product shipments.
Revenue from Remaining Performance Obligations
Revenue from remaining performance obligations of $2.2 billion represents contract liabilities, deferred revenue and other performance obligations that will be recognized in future periods. As of December 31, 2022, approximately $1.3 billion of revenue is expected to be recognized from remaining performance obligations, of which approximately 81% is expected to be recognized over the next two years and approximately 19% is expected to be recognized during the third to the fifth year. These amounts do not include the $961.0 million of binding contractual agreements related primarily to future product shipments outlined above. As of December 31, 2022, it is expected that the majority of the amounts allocated to these specific performance obligations will be recognized as revenue upon product shipment over the next two years; however, given the current uncertain supply chain environment, we may experience manufacturing and shipment delays or cancellations related to these performance obligations, which could impact revenue recognition.
Other Income, Net
Other income, net consists of the following (in thousands):
Year Ended December 31,
202220212020
Other income (expense), net:
Interest income$27,556 $7,215 $27,139 
Unrealized gain on equity investments27,479 — 4,164 
Other income (expense)(345)(1,075)7,876 
Total other income, net$54,690 $6,140 $39,179