Table of Contents ENPHASE ENERGY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Remaining Performance Obligations Estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period are as follows: December 31, 2023 (In thousands) Fiscal year: 2024 $ 118,300 2025 109,877 2026 93,948 2027 74,273 2028 52,939 Thereafter 38,135 Total $ 487,472 4. INVENTORY Inventory Inventory consists of the following: December 31, December 31, 2023 2022 (In thousands) Raw materials $ 30,849 $ 34,978 Finished goods 182,746 114,730 Total inventory $ 213,595 $ 149,708 5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: December 31, Estimated Useful Life 2023 2022 (Years) (In thousands) Equipment and machinery 3-10 $ 186,298 $ 114,246 Furniture and fixtures 5-10 3,222 3,295 Computer equipment 3-5 7,744 7,543 Capitalized software costs 3-5 61,577 42,649 Building and leasehold improvements 3-10 17,058 15,875 Land — 114 Construction in process 29,752 31,734 Total 305,651 215,456 Less: accumulated depreciation and amortization (137,407) (104,089) Property and equipment, net $ 168,244 $ 111,367 Depreciation expense for property and equipment, net for the years ended December 31, 2023, 2022 and 2021 was $40.7 million, $27.7 million and $16.7 million, respectively. As of December 31, 2023 and 2022, unamortized capitalized software costs were $25.2 million and $19.2 million, respectively. Enphase Energy, Inc. | 2023 Form 10-K | 85