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Supplemental Financial Information
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information
Note 12. Supplemental Financial Information
The following table presents the components of inventories as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Raw materials$76,782 $81,878 
Work-in-process15,964 12,901 
Finished goods60,430 53,108 
 $153,176 $147,887 
As of March 31, 2024 and December 31, 2023, inventories included adjustments totaling $25.0 million and $24.4 million, respectively, to record balances at lower of cost or net realizable value.
The following table presents the components of accrued liabilities and other as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Legal and professional costs$19,961 $17,794 
Operating lease liabilities8,578 8,362 
Italian medical device payback law8,447 8,223 
Contract liabilities8,113 10,725 
Interest payable7,985 7,840 
Provisions for agents, returns and other6,705 4,464 
Restructuring liability4,601 911 
Royalty accrual4,146 4,441 
Research and development costs3,099 2,462 
Contingent consideration— 13,750 
Current derivative liabilities— 3,883 
Other accrued expenses22,394 24,446 
$94,029 $107,301 
As of March 31, 2024 and December 31, 2023, contract liabilities totaling $14.1 million and $15.3 million, respectively, were included in accrued liabilities and other long-term liabilities on the condensed consolidated balance sheets.
The following table presents the items included in foreign exchange and other income/(expense) on the condensed consolidated statements of (loss) income for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended March 31,
20242023
2025 Notes fair value adjustment (1)
$(1,978)$44,390 
2029 Notes fair value adjustment (1)
(6,831)— 
Capped call fair value adjustment (2025 Notes) (1)
(7,962)(23,379)
Capped call fair value adjustment (2029 Notes) (1)
1,970 — 
Foreign exchange rate fluctuations(922)222 
Interest income7,021 4,536 
Other(369)(222)
Foreign exchange and other income/(expense)$(9,071)$25,547 
(1)Refer to “Note 3. Fair Value Measurements”
The following table presents a reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the amounts shown on the condensed consolidated statements of cash flows as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Cash and cash equivalents$309,191 $266,504 
Restricted cash (1)
306,492 311,368 
Cash, cash equivalents and restricted cash$615,683 $577,872 
(1)On March 18, 2022, LivaNova PLC, acting through its Italian branch, entered into an Indemnity Letter and an Account Pledge Agreement with Barclays, further to which Barclays issued the SNIA Litigation Guarantee. As security for the SNIA Litigation Guarantee, LivaNova is required to grant cash collateral to Barclays in USD in an amount equal to the USD equivalent of 105% of the amount of the SNIA Litigation Guarantee calibrated on a biweekly basis. Cash collateral classified as restricted cash on the condensed consolidated balance sheet was $306.5 million and $311.4 million as of March 31, 2024 and December 31, 2023, respectively. Refer to “Note 6. Commitments and Contingencies.”