5. Balance Sheet Details

Balance sheet details were as follows as of December 31, 2013 and 2012:

Trade and Other Accounts receivable, Net

Receivables consisted of the following components:


	December 31,
	2013		2012
	(in thousands)
Trade receivables and other	$	12,043	$	14,877
Unbilled costs and accrued profits		2,994		4,945
Less: allowance for doubtful accounts		—		—

	$	15,037	$	19,822

Allowance for Doubtful Accounts

The following table represents a reconciliation of the allowance for doubtful accounts for the years ended December 31, 2012 and 2011. There were no activities related to allowance for doubtful accounts as of or for the year ended December 31, 2013.


	2012			2011
	(in thousands)
Opening balance	$	41		$	55
Bad debt expense		3,017			41
Write-offs		(3,058	)		(55	)

Closing balance	$	—		$	41

Intevac held a promissory note from a customer which was secured by the equipment sold to this customer in a prior year under a product and sales agreement. The note was to be repaid in monthly installment payments ending in March 2015. The revenue associated with this sale had been accounted for under the installment method of accounting whereby revenue was recognized only to the extent cash had been received. During the third quarter of fiscal 2012, the customer became delinquent in its monthly installment payments and the note was put on non-accrual status. On September 27, 2012, the customer liquidated its operating assets in an auction. The equipment which collateralized the promissory note was sold in the liquidation auction and Intevac received the proceeds. On September 28, 2012, the customer announced that it was discontinuing its operations effective October 9, 2012 and Intevac concluded that none of the carrying value of the promissory note receivable was collectible and recorded a bad debt charge.

The following table summarizes the components of the bad debt expense for the year ended December 31, 2012 (in thousands):


Promissory note	$	4,085
Deferred profit on installment sale		(1,028	)
Cash recovery from liquidation sale		(40	)

Bad debt expense	$	3,017

Inventories

Inventories are stated at the lower of average cost or market and consist of the following:


	December 31,
	2013		2012
	(in thousands)
Raw materials	$	13,005	$	14,921
Work-in-progress		8,196		5,526
Finished goods		1,561		5,746

	$	22,762	$	26,193

Finished goods inventory consists primarily of completed systems at customer sites that are undergoing installation and acceptance testing and evaluation inventory.

Property, Plant and Equipment


	December 31,
	2013		2012
	(in thousands)
Leasehold improvements	$	15,090	$	15,254
Machinery and equipment		39,938		37,373

		55,028		52,627
Less accumulated depreciation and amortization		42,083		39,201

Total property, plant and equipment, net	$	12,945	$	13,426

Customer Advances

Customer advances generally represent nonrefundable deposits invoiced by the Company in connection with receiving customer purchase orders and other events preceding acceptance of systems. Customer advances related to products that have not been shipped to customers and included in accounts receivable were $1.1 million at December 31, 2013 and $1.6 million at December 31, 2012.

Accounts Payable

Included in accounts payable is $325,000 and $505,000 of book overdraft at December 31, 2013 and 2012, respectively.

Other Accrued Liabilities


	December 31,
	2013		2012
	(in thousands)
Accrued product warranties	$	1,546	$	2,259
Other taxes payable		551		729
Deferred revenue		496		4,641
Acquisition-related contingent consideration		164		265
Accrued income taxes		—		207
Other		506		388

Total other accrued liabilities	$	3,263	$	8,489

Other Long-Term Liabilities


	December 31,
	2013		2012
	(in thousands)
Acquisition-related contingent consideration	$	1,220	$	4,886
Accrued income taxes		394		4,256
Accrued product warranties		101		90

Total other long-term liabilities	$	1,715	$	9,232