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Financial Statements Details
 12 Months Ended
Dec. 31, 2024
Balance Sheet Components [Abstract]  
Financial Statement Details Financial Statements Details
Inventories
Inventories consist of the following (in thousands):
December 31,
20242023
Raw materials $565,379 $930,777 
Finished goods(1)
1,269,193 1,014,403 
Total inventories $1,834,572 $1,945,180 
(1) The balance as of December 31, 2024 includes evaluation inventory held at customers or partners of $422.1 million. Evaluation inventory as of December 31, 2023 was not material.
Property and Equipment, net
Property and equipment, net consists of the following (in thousands):
 December 31,
20242023
Land$47,189 $44,645 
Equipment and machinery 160,673 144,850 
Computer hardware and software 63,941 57,761 
Furniture and fixtures 3,526 3,576 
Leasehold improvements 34,712 34,584 
Construction-in-process 8,209 4,242 
Property and equipment, gross 318,250 289,658 
Less: accumulated depreciation (219,405)(188,078)
Property and equipment, net $98,845 $101,580 
Depreciation expense was $34.0 million, $31.7 million and $25.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
 December 31,
20242023
Accrued compensation-related costs$147,847 $134,225 
Supplier liability63,786 167,878 
Accrued manufacturing costs110,169 61,491 
Other113,475 43,708 
Total accrued liabilities $435,277 $407,302 
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,
20242023
Contract liabilities, beginning balance$133,239 $103,448 
Less: Revenue recognized from beginning balance(58,300)(43,286)
Less: Beginning balance reclassified to deferred revenue(3,772)(3,185)
Add: Contract liabilities recognized89,623 76,262 
Contract liabilities, ending balance$160,790 $133,239 
As of December 31, 2024 and 2023, $65.7 million and $59.2 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 annual and 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,
20242023
Deferred revenue, beginning balance$1,506,204 $1,041,246 
Less: Revenue recognized from beginning balance(860,187)(615,681)
Add: Deferral of revenue in current period, excluding amounts recognized during the period2,145,398 1,080,639 
Deferred revenue, ending balance$2,791,415 $1,506,204 
Other Performance Obligations
Other performance obligations totaling $450.4 million as of December 31, 2024 include unbilled multi-year PCS and service contract amounts of $388.8 million and $61.6 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 is expected to be recognized in future periods was $3.4 billion as of December 31, 2024. Approximately 85% of this future revenue is expected to be recognized over the next two years and the remaining 15% 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,
202420232022
Other income (expense), net:
Interest income$310,998 $152,421 $27,556 
Other income (expense)9,420 12,356 27,134 
Total other income, net$320,418 $164,777 $54,690