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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________________________ 
FORM 10-Q
_______________________________________ 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission File Number: 0-21044
_______________________________________ 
UNIVERSAL ELECTRONICS INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware33-0204817
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
15147 N. Scottsdale Road, Suite H300, Scottsdale, Arizona 85254-2494
(Address of principal executive offices and zip code)
(480) 530-3000
(Registrant's telephone number, including area code)
_____________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareUEICThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes No ☒
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 13,101,702 shares of Common Stock, par value $0.01 per share, of the registrant were outstanding on November 2, 2021.



UNIVERSAL ELECTRONICS INC.
INDEX
 
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Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements (Unaudited)
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share-related data)
(Unaudited)
September 30, 2021December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents$58,825 $57,153 
Accounts receivable, net139,894 129,433 
Contract assets9,173 9,685 
Inventories123,981 120,430 
Prepaid expenses and other current assets6,155 6,828 
Income tax receivable2,877 3,314 
Total current assets340,905 326,843 
Property, plant and equipment, net79,199 87,285 
Goodwill48,510 48,614 
Intangible assets, net20,695 19,710 
Operating lease right-of-use assets17,726 19,522 
Deferred income taxes4,345 5,564 
Other assets2,144 2,752 
Total assets$513,524 $510,290 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$85,635 $83,229 
Line of credit53,000 20,000 
Accrued compensation24,982 28,931 
Accrued sales discounts, rebates and royalties7,035 10,758 
Accrued income taxes1,598 3,535 
Other accrued liabilities32,522 33,057 
Total current liabilities204,772 179,510 
Long-term liabilities:
Operating lease obligations11,948 13,681 
Contingent consideration 292 
Deferred income taxes180 1,913 
Income tax payable1,054 1,054 
Other long-term liabilities332 539 
Total liabilities218,286 196,989 
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding
  
Common stock, $0.01 par value, 50,000,000 shares authorized; 24,627,589 and 24,391,595 shares issued on September 30, 2021 and December 31, 2020, respectively
246 244 
Paid-in capital311,964 302,084 
Treasury stock, at cost, 11,476,672 and 10,618,002 shares on September 30, 2021 and December 31, 2020, respectively
(339,712)(295,495)
Accumulated other comprehensive income (loss)(13,881)(18,522)
Retained earnings336,621 324,990 
Total stockholders' equity295,238 313,301 
Total liabilities and stockholders' equity$513,524 $510,290 

The accompanying notes are an integral part of these consolidated financial statements.
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UNIVERSAL ELECTRONICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited) 
Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Net sales$155,625 $153,505 $456,658 $458,416 
Cost of sales109,805 109,349 319,777 333,244 
Gross profit45,820 44,156 136,881 125,172 
Research and development expenses7,411 7,696 23,029 22,979 
Selling, general and administrative expenses29,505 26,214 87,316 77,441 
Operating income8,904 10,246 26,536 24,752 
Interest income (expense), net(212)(268)(447)(1,272)
Loss on sale of Argentina subsidiary(6,050) (6,050) 
Accrued social insurance adjustment   9,464 
Other income (expense), net(157)(1,646)(151)(1,263)
Income before provision for income taxes2,485 8,332 19,888 31,681 
Provision for income taxes3,440 2,164 8,257 5,267 
Net income (loss)$(955)$6,168 $11,631 $26,414 
Earnings (loss) per share:
Basic$(0.07)$0.44 $0.85 $1.90 
Diluted$(0.07)$0.43 $0.84 $1.86 
Shares used in computing earnings per share:
Basic13,39213,928 13,62213,935 
Diluted13,39214,20513,92014,189
The accompanying notes are an integral part of these consolidated financial statements.

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UNIVERSAL ELECTRONICS INC.
CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS
(In thousands)
(Unaudited) 
Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Net income (loss)$(955)$6,168 $11,631 $26,414 
Other comprehensive income (loss):
Change in foreign currency translation adjustment(1,959)5,005 (784)(2,774)
Change in foreign currency translation due to sale of Argentina subsidiary5,425  5,425  
Comprehensive income$2,511 $11,173 $16,272 $23,640 
The accompanying notes are an integral part of these consolidated financial statements.

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UNIVERSAL ELECTRONICS INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands)
(Unaudited)
The following summarizes the changes in total equity for the three and nine months ended September 30, 2021:
 Common Stock
Issued
Common Stock
in Treasury
Paid-in
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Totals
 SharesAmountSharesAmount
Balance at December 31, 202024,392 $244 (10,618)$(295,495)$302,084 $(18,522)$324,990 $313,301 
Net income6,993 6,993 
Currency translation adjustment(2,868)(2,868)
Shares issued for employee benefit plan and compensation160 2 408 410 
Purchase of treasury shares(191)(10,951)(10,951)
Stock options exercised22 — 991 991 
Shares issued to directors7 — —  
Employee and director stock-based compensation2,600 2,600 
Performance-based common stock warrants143 143 
Balance at March 31, 202124,581 246 (10,809)(306,446)306,226 (21,390)331,983 310,619 
Net income5,593 5,593 
Currency translation adjustment4,043 4,043 
Shares issued for employee benefit plan and compensation15 — 271 271 
Purchase of treasury shares(320)(15,733)(15,733)
Shares issued to directors8 — —  
Employee and director stock-based compensation2,444 2,444 
Performance-based common stock warrants131 131 
Balance at June 30, 202124,604 246 (11,129)(322,179)309,072 (17,347)337,576 307,368 
Net loss(955)(955)
Currency translation adjustment(1,959)(1,959)
Change in foreign currency translation due to sale of Argentina subsidiary5,425 5,425 
Shares issued for employee benefit plan and compensation16 — 296 296 
Purchase of treasury shares(348)(17,533)(17,533)
Shares issued to directors8 — —  
Employee and director stock-based compensation2,472 2,472 
Performance-based common stock warrants124 124 
Balance at September 30, 202124,628 $246 (11,477)$(339,712)$311,964 $(13,881)$336,621 $295,238 
The accompanying notes are an integral part of these consolidated financial statements.
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UNIVERSAL ELECTRONICS INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands)
(Unaudited)
The following summarizes the changes in total equity for the three and nine months ended September 30, 2020:
Common Stock
Issued
Common Stock
in Treasury
Paid-in
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Totals
SharesAmountSharesAmount
Balance at December 31, 201924,118 $241 (10,174)$(277,817)$288,338 $(22,781)$286,418 $274,399 
Net income5,846 5,846 
Currency translation adjustment(7,009)(7,009)
Shares issued for employee benefit plan and compensation129 1 526 527 
Purchase of treasury shares(169)(6,291)(6,291)
Shares issued to directors9 1 (1) 
Employee and director stock-based compensation2,303 2,303 
Performance-based common stock warrants184 184 
Balance at March 31, 202024,256 243 (10,343)(284,108)291,350 (29,790)292,264 269,959 
Net income14,400 14,400 
Currency translation adjustment(770)(770)
Shares issued for employee benefit plan and compensation13 — 212 212 
Purchase of treasury shares(3)(114)(114)
Employee and director stock-based compensation2,291 2,291 
Performance-based common stock warrants154 154 
Balance at June 30, 202024,269 243 (10,346)(284,222)294,007 (30,560)306,664 286,132 
Net income6,168 6,168 
Currency translation adjustment5,005 5,005 
Shares issued for employee benefit plan and compensation15 $— 220 220 
Purchase of treasury shares(91)(3,417)(3,417)
Shares issued to directors9 $— —  
Employee and director stock-based compensation2,260 2,260 
Performance-based common stock warrants187 187 
Balance at September 30, 202024,293 $243 (10,437)$(287,639)$296,674 $(25,555)$312,832 $296,555 
The accompanying notes are an integral part of these consolidated financial statements.

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UNIVERSAL ELECTRONICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 Nine Months Ended September 30,
 20212020
Cash flows from operating activities:
Net income$11,631 $26,414 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization19,719 22,857 
Provision for credit losses1 271 
Deferred income taxes(483)503 
Shares issued for employee benefit plan977 959 
Employee and director stock-based compensation7,516 6,854 
Performance-based common stock warrants398 525 
Impairment of long-term assets 57 
Loss on sale of Argentina subsidiary, net of cash transferred5,960  
Accrued social insurance adjustment (9,464)
Loss on sale of Ohio call center 712 
Changes in operating assets and liabilities:
Accounts receivable and contract assets(12,129)11,556 
Inventories(4,466)30,466 
Prepaid expenses and other assets2,872 601 
Accounts payable and accrued liabilities(7,416)(50,507)
Accrued income taxes(1,664)2,023 
Net cash provided by operating activities22,916 43,827 
Cash flows from investing activities:
Acquisitions of property, plant and equipment(8,782)(10,864)
Acquisitions of intangible assets(3,626)(5,254)
Payment on sale of Ohio call center (500)
Net cash used for investing activities(12,408)(16,618)
Cash flows from financing activities:
Borrowings under line of credit71,000 70,000 
Repayments on line of credit(38,000)(88,000)
Proceeds from stock options exercised991  
Treasury stock purchased(44,217)(9,822)
Contingent consideration payments in connection with business combinations (3,091)
Net cash used for financing activities(10,226)(30,913)
Effect of foreign currency exchange rates on cash and cash equivalents1,390 (3,452)
Net increase (decrease) in cash and cash equivalents1,672 (7,156)
Cash and cash equivalents at beginning of period57,153 74,302 
Cash and cash equivalents at end of period$58,825 $67,146 
Supplemental cash flow information:
Income taxes paid$8,235 $3,242 
Interest paid$375 $1,404 
The accompanying notes are an integral part of these consolidated financial statements.
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UNIVERSAL ELECTRONICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Note 1 — Basis of Presentation

In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary.

Our results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk," and the "Financial Statements and Supplementary Data" included in Items 1A, 7, 7A, and 8, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2020.

Estimates and Assumptions

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition; allowance for credit losses; inventory valuation; impairment of long-lived assets, intangible assets and goodwill; business combinations; income taxes and related valuation allowances; stock-based compensation expense and performance-based common stock warrants.

The coronavirus ("COVID-19") pandemic and the mitigation efforts by governments to attempt to control its spread have created uncertainties and disruptions in the economic and financial markets. While we are not currently aware of events or circumstances that would require an update to our estimates, judgments or adjustments to the carrying values of our assets or liabilities, these estimates may change as developments occur and we obtain additional information. These future developments are highly uncertain and the outcomes are unpredictable. Actual results may differ from those estimates, and such differences may be material to the financial statements.

Summary of Significant Accounting Policies

With the exception of the following policy, our significant accounting policies are unchanged from those disclosed in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020.

Revenue Recognition

We license our symbolic intellectual property which includes our patented technologies and database of control codes. Revenue is recognized for these licensing arrangements on an over-time basis. We record license revenue for per-unit based licenses when our customers manufacture or ship a product incorporating our intellectual property and we have a present right to payment. We record per-unit-based licenses with minimum guarantees ratably over the license period to which the minimum guarantee relates and any per-unit sales in excess of the minimum guarantee in the period in which the sale occurs. We record licenses with fixed consideration ratably over the license period. Tiered royalties are recorded on a straight-line basis according to the forecasted per-unit fees taking into account the pricing tiers.

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UNIVERSAL ELECTRONICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes", which, among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under previous guidance, an entity recognized the effects of the enacted tax law change on the effective income tax rate in the period that included the effective date of the tax law. Our adoption of this guidance on January 1, 2021 did not have a material impact on our consolidated statement of financial position, results of operations and cash flows.

Recent Accounting Updates Not Yet Effective

In March 2020, the FASB issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and in January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform". This guidance is intended to provide temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The amendments in these ASUs are elective and are effective upon issuance for all entities through December 31, 2022. These amendments are not expected to have a material impact on our consolidated statement of financial position, results of operations and cash flows.

Note 2 — Cash and Cash Equivalents

Cash and cash equivalents were held in the following geographic regions:
(In thousands)September 30, 2021December 31, 2020
North America$7,663 $9,812 
People's Republic of China ("PRC")14,57314,244
Asia (excluding the PRC)11,90413,518
Europe15,19410,926
South America9,4918,653
Total cash and cash equivalents
$58,825 $57,153 

Note 3 — Revenue and Accounts Receivable, Net

Revenue Details

The pattern of revenue recognition was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2021202020212020
Goods and services transferred at a point in time$129,530 $127,657 $371,921 $365,902 
Goods and services transferred over time26,09525,84884,73792,514 
Net sales$155,625 $153,505 $456,658 $458,416 
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UNIVERSAL ELECTRONICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)

Our net sales to external customers by geographic area were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2021202020212020
United States$49,637 $64,367 $151,251 $203,981 
Asia (excluding PRC)34,42227,923 100,24786,043 
Europe32,18726,11991,35372,625
People's Republic of China23,41325,62571,24263,653
Latin America6,9174,54618,42912,652
Other9,0494,92524,13619,462
Total net sales$155,625 $153,505 $456,658 $458,416 

Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas.

Net sales to the following customers totaled more than 10% of our net sales:
 Three Months Ended September 30,
20212020
 $ (thousands)% of Net Sales$ (thousands)% of Net Sales
Comcast Corporation$22,578 14.5 %$32,533 21.2 %
Daikin Industries Ltd.$20,610 13.2 %$ 
(1)
 %
(1)
Sony Corporation$ 
(1)
 %
(1)
$15,927 10.4 %
 Nine Months Ended September 30,
20212020
 $ (thousands)% of Net Sales$ (thousands)% of Net Sales
Comcast Corporation$74,478 16.3 %$95,014 20.7 %
Daikin Industries Ltd.$54,495 11.9 %$ 
(1)
 %
(1)

(1)Sales associated with this customer did not total more than 10% of our net sales for the indicated period.

Accounts Receivable, Net

Accounts receivable, net were as follows:
(In thousands)September 30, 2021December 31, 2020
Trade receivables, gross$132,931 $122,828 
Allowance for credit losses(1,344)(1,412)
Allowance for sales returns(520)(761)
Trade receivables, net131,067 120,655 
Other (1)
8,827 8,778 
Accounts receivable, net$139,894 $129,433 
(1)Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables.
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UNIVERSAL ELECTRONICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Allowance for Credit Losses

Changes in the allowance for credit losses were as follows:
(In thousands)Nine Months Ended September 30,
20212020
Balance at beginning of period$1,412 $1,492 
Additions to costs and expenses1 271 
Write-offs/Foreign exchange effects(69)34 
Balance at end of period$1,344 $1,797 

Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net were as follows:
September 30, 2021December 31, 2020
$ (thousands)% of Accounts Receivable, Net$ (thousands)% of Accounts Receivable, Net
Comcast Corporation$21,517 15.4 %$19,782 

15.3 %

Note 4 — Inventories and Significant Suppliers

Inventories were as follows:
(In thousands)September 30, 2021December 31, 2020
Raw materials$42,907 $44,273 
Components24,598 16,954 
Work in process4,802 6,211 
Finished goods51,674 52,992 
Inventories$123,981 $120,430 

Significant Suppliers

Purchases from the following supplier totaled more than 10% of our total inventory purchases:
Three Months Ended September 30,
20212020
$ (thousands)% of Total Inventory Purchases$ (thousands)% of Total Inventory Purchases
Qorvo International Pte Ltd.$12,064 14.5 %$8,472 13.0 %
Nine Months Ended September 30,
20212020
$ (thousands)% of Total Inventory Purchases$ (thousands)% of Total Inventory Purchases
Qorvo International Pte Ltd.$31,677 13.1 %$29,679 13.4 %
Zhejiang Zhen You Electronics Co. Ltd. totaled $9.4 million and 11.0% of our accounts payable balance at September 30, 2021. No supplier totaled 10% or more of our accounts payable balance at December 31, 2020.

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UNIVERSAL ELECTRONICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Note 5 — Long-lived Tangible Assets

Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows:
(In thousands)September 30, 2021December 31, 2020
United States$14,561 $15,411 
People's Republic of China58,027 64,197 
Mexico20,788 22,410 
All other countries3,549 4,789 
Total long-lived tangible assets$96,925 $106,807 

Property, plant, and equipment are shown net of accumulated depreciation of $164.5 million and $154.2 million at September 30, 2021 and December 31, 2020, respectively.

Note 6 — Goodwill and Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill were as follows:
(In thousands) 
Balance at December 31, 2020
$48,614 
Foreign exchange effects(104)
Balance at September 30, 2021
$48,510 

Intangible Assets, Net

The components of intangible assets, net were as follows:
 September 30, 2021December 31, 2020
(In thousands)
Gross (1)
Accumulated
Amortization (1)
Net
Gross (1)
Accumulated
Amortization (1)
Net
Capitalized software development costs$1,018 $(15)$1,003 $477 $ $477 
Customer relationships8,100 (4,859)3,241 8,100 (4,329)3,771 
Developed and core technology4,080 (3,262)818 4,080 (3,044)1,036 
Distribution rights333 (268)65 352 (261)91 
Patents23,944 (8,603)15,341 21,601 (7,574)14,027 
Trademarks and trade names800 (573)227 800 (492)308 
Total intangible assets, net$38,275 $(17,580)$20,695 $35,410 $(15,700)$19,710 

(1)This table excludes the gross value of fully amortized intangible assets totaling $43.1 million and $42.7 million at September 30, 2021 and December 31, 2020, respectively.
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UNIVERSAL ELECTRONICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows:
(In thousands)Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Cost of sales$7 $ $15 $ 
Selling, general and administrative expenses938 1,752 2,622 5,472 
Total amortization expense$945 $1,752 $2,637 $5,472 
 
Estimated future annual amortization expense related to our intangible assets at September 30, 2021, was as follows:
(In thousands)
2021 (remaining 3 months)$885 
20223,929 
20233,764 
20242,776 
20252,457 
Thereafter6,884 
Total$20,695 

Note 7 — Leases

We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2021, our operating leases had remaining lease terms of up to 39 years, including any reasonably probable extensions.

Lease balances within our consolidated balance sheet were as follows:
(In thousands)September 30, 2021December 31, 2020
Assets:
Operating lease right-of-use assets$17,726 $19,522 
Liabilities:
Other accrued liabilities$