Financial Statements Details

12 Months Ended

Dec. 31, 2023

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,
	2023		2022
Cash and cash equivalents	$	1,938,606	$	671,707
Restricted cash included in other assets	858		4,271
Total cash, cash equivalents and restricted cash	$	1,939,464	$	675,978

Accounts Receivable, net

Accounts receivable, net consists of the following (in thousands):

	December 31,
	2023		2022
Accounts receivable	$	1,034,480	$	928,490
Product sales rebate, returns reserve and others	(9,911)		(5,394)
Accounts receivable, net	$	1,024,569	$	923,096

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2023		2022
Raw materials	$	930,777	$	759,519
Finished goods	1,014,403		530,187
Total inventories	$	1,945,180	$	1,289,706

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):

	December 31,
	2023		2022
Inventory deposits	$	130,509	$	162,047
Other prepaid expenses and deposits	282,009		152,170
Total prepaid expenses and other current assets	$	412,518	$	314,217

Property and Equipment, net

Property and equipment, net consists of the following (in thousands):

	December 31,
	2023		2022
Land	$	44,645	$	41,500
Equipment and machinery	144,850		122,407
Computer hardware and software	57,761		52,148
Furniture and fixtures	3,576		3,575
Leasehold improvements	34,584		30,102
Construction-in-process	4,242		2,124
Property and equipment, gross	289,658		251,856
Less: accumulated depreciation	(188,078)		(156,847)
Property and equipment, net	$	101,580	$	95,009

Depreciation expense was $31.7 million, $25.6 million and $19.5 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	December 31,
	2023		2022
Accrued compensation-related costs	$	134,225	$	117,053
Supplier liability	167,878		71,481
Accrued manufacturing costs	61,491		45,379
Accrued product development costs	1,041		27,380
Other	42,667		31,194
Total accrued liabilities	$	407,302	$	292,487

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,
	2023		2022
Contract liabilities, beginning balance	$	103,448	$	93,382
Less: Revenue recognized from beginning balance	(43,286)		(37,680)
Less: Beginning balance reclassified to deferred revenue	(3,185)		(2,693)
Add: Contract liabilities recognized	76,262		50,439
Contract liabilities, ending balance	$	133,239	$	103,448

As of December 31, 2023 and 2022, $59.2 million and $45.2 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 service revenue related to multi-year PCS contracts, and product deferrals related to contracts with acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands):

	Year Ended December 31,
	2023		2022
Deferred revenue, beginning balance	$	1,041,246	$	929,312
Less: Revenue recognized from beginning balance	(615,681)		(583,787)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	1,080,639		695,721
Deferred revenue, ending balance	$	1,506,204	$	1,041,246

Other Performance Obligations

Other performance obligations totaling $704.1 million as of December 31, 2023 include unbilled multi-year PCS and service contract amounts of $336.4 million and $367.7 million of binding contractual agreements with certain customers that are primarily related to future product shipments.

Revenue from Total Remaining Performance Obligations

Total revenue from our contract liabilities, deferred revenue and other performance obligations that will be recognized in future periods amounts to $2.3 billion. Included in this amount is the $367.7 million of binding contractual agreements related primarily to future product shipments that are expected to be recognized as revenue over the next eighteen months. In addition, approximately 79% of the remaining $2.0 billion of this future revenue is expected to be recognized over the next two years and approximately 21% is expected to be recognized during the third to the fifth year.

Other Income, Net

Other income, net consists of the following (in thousands):

	Year Ended December 31,
	2023		2022		2021
Other income (expense), net:
Interest income	$	152,421	$	27,556	$	7,215
Gain (loss) on strategic investments	18,699		27,479		—
Other income (expense)	(6,343)		(345)		(1,075)
Total other income, net	$	164,777	$	54,690	$	6,140