v3.22.4
Balance Sheet Components
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
4. Balance Sheet Components
Accounts Receivable, Net
The Company’s allowance for credit losses related to accounts receivable balances was comprised of the following (in thousands):
Balance At
Beginning Of Year		Write-offs
Provision for (Benefit from) Expected Credit Losses (1)
RecoveriesBalance At
End Of Year
For the year ended:
December 31, 20202,946 (2,361)$1,613 — 2,198 
December 31, 20212,198 — $— (106)2,092 
December 31, 20222,092 — $(1,230)— 862 
(1) On January 1, 2020, the Company recorded a $1.3 million adjustment to opening retained earnings upon the adoption of ASU 2016-13.
 Inventories
The components of inventories consisted of the following (in thousands):
December 31,
20222021
Raw materials$90,786 $68,374 
Work in process26,793 18,678 
Finished goods216,427 176,452 
Inventories$334,006 $263,504 
In the fourth quarter of 2020, the Company reclassified $17.7 million of REAL Immersive System products and components from Property and equipment, net to Inventories as a result of changes in its go to market strategy. The Company classified cash flows associated with its REAL Immersive System prior to its change in its go to market strategy during the fourth quarter of 2020 as investing activities, which is consistent with the Company's intent when the cash flows occurred.
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
December 31,
20222021
Machinery and equipment$37,160 $30,429 
Furniture and fixtures16,042 14,360 
Leasehold improvements25,611 23,934 
Software16,863 7,989 
Computers9,841 9,457 
Construction in progress7,523 11,101 
Total property and equipment113,040 97,270 
Less: Accumulated depreciation and amortization(48,025)(38,414)
Property and equipment, net$65,015 $58,856 
Depreciation and amortization expense, excluding intangible assets and software, was $9.8 million, $9.3 million and $8.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Software amortization expense was $1.7 million, $1.0 million and $1.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company had accumulated software amortization of $6.3 million and $4.9 million for the years ended December 31, 2022 and 2021, respectively.
Accrued Liabilities
The following table shows the components of accrued liabilities as of December 31, 2022 and 2021 (in thousands):
 December 31, 2022December 31, 2021
Payroll and employee-related expenses$60,480 $60,015 
Accrued expenses10,902 12,245 
Deferred revenue9,158 — 
Other accrued liabilities25,760 27,536 
Total accrued liabilities$106,300 $99,796 
The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, as of December 31, 2022, 2021 and 2020 (in thousands):
December 31,
202220212020
Balance at the beginning of the year$4,310 $2,896 $2,318 
Accruals of warranties issued2,451 2,973 1,589 
Settlements of warranty claims(1,391)(1,559)(1,011)
Balance at the end of the year$5,370 $4,310 $2,896