Balance Sheet Components

Inventories

The components of inventory consisted of the following (in thousands):



	March 31,		December 31,
	2019		2018

Raw materials	$	42,965	$	53,273
Work-in-progress	23,672		22,303
Finished goods	49,907		56,900
	$	116,544	$	132,476

Prepaid Expense and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):



	March 31,		December 31,
	2019		2018

Government incentives receivable	$	960	$	1,001
Prepaid expenses and other current assets	27,402		32,741
	$	28,362	$	33,742

Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following (in thousands):



	March 31,			December 31,
	2019			2018

Energy Servers	$	511,485		$	511,485
Computers, software and hardware	18,796			16,536
Machinery and equipment	100,311			99,209
Furniture and fixtures	8,669			4,337
Leasehold improvements	34,126			18,629
Building	40,512			40,512
Construction in progress	10,496			29,084
	724,395			719,792
Less: Accumulated depreciation	(249,010		)	(238,378		)
	$	475,385		$	481,414

Our construction in progress decreased $18.6 million, as compared to December 31, 2018, primarily due to our investment in leasehold improvements and furniture and fixtures related to our move to our new corporate headquarters.

Our property, plant and equipment under operating leases by the PPA Entities was $397.5 million and $397.5 million as of March 31, 2019 and December 31, 2018, respectively. The accumulated depreciation for these assets was $83.8 million and $77.4 million as of March 31, 2019 and December 31, 2018, respectively. Depreciation expense related to our property, plant and equipment was $6.4 million and $6.4 million for the three months ended March 31, 2019 and 2018, respectively.

Customer Financing Leases, Receivable

The components of investment in sales-type financing leases consisted of the following (in thousands):



	March 31,			December 31,
	2019			2018

Total minimum lease payments to be received	$	98,632		$	100,816
Less: Amounts representing estimated executing costs	(24,522		)	(25,180		)
Net present value of minimum lease payments to be received	74,110			75,636
Estimated residual value of leased assets	1,051			1,051
Less: Unearned income	(3,824		)	(4,011		)
Net investment in sales-type financing leases	71,337			72,676
Less: Current portion	(5,717		)	(5,594		)
Non-current portion of investment in sales-type financing leases	$	65,620		$	67,082

The future scheduled customer payments from sales-type financing leases were as follows as of March 31, 2019 (in thousands):



	Remainder of 2019		2020		2021		2022		2023		Thereafter

Future minimum lease payments, less interest	$	4,256	$	6,022	$	6,415	$	6,853	$	7,310	$	39,430

Other Long-Term Assets

Other long-term assets consisted of the following (in thousands):



	March 31,		December 31,
	2019		2018

Prepaid and other long-term assets	$	26,321	$	27,086
Equity-method investments	6,292		6,046
Long-term deposits	1,773		1,660
	$	34,386	$	34,792

Equity-method investments

In May 2013, we entered into a joint venture with Softbank Corp., and established Bloom Energy Japan limited which is accounted for as an equity method investment. Under this arrangement, we sell Energy Servers and provide maintenance services to the joint venture. Accounts receivable from this joint venture was $2.7 million and $2.4 million as of March 31, 2019 and December 31, 2018, respectively.

Accrued Warranty

Accrued warranty liabilities consisted of the following (in thousands):



	March 31,		December 31,
	2019		2018

Product warranty	$	9,183	$	10,935
Operations and maintenance services agreements	7,553		8,301
	$	16,736	$	19,236

Changes during the current period in the standard product warranty liability were as follows (in thousands):



Balances at December 31, 2018	$	10,935
Accrued warranty, net	629
Warranty expenditures during period	(2,381		)
Balances at March 31, 2019	$	9,183

Accrued Other Current Liabilities

Accrued other current liabilities consisted of the following (in thousands):



	March 31,		December 31,
	2019		2018

Compensation and benefits	$	18,327	$	16,742
Current portion of derivative liabilities	3,349		3,232
Managed services liabilities	4,633		5,091
Accrued installation	6,408		6,859
Sales tax liabilities	2,202		1,700
Interest payable	3,631		4,675
Other	29,416		31,236
	$	67,966	$	69,535

Other Long-Term Liabilities

Accrued other long-term liabilities consisted of the following (in thousands):



	March 31,		December 31,
	2019		2018

Delaware grant	$	10,469	$	10,469
Managed services liabilities	29,062		29,741
Other	18,501		15,727
	$	58,032	$	55,937

We have entered into managed services agreements that provide for the payment of property taxes and insurance premiums on behalf of customers. These obligations are included in each agreements' contract value and are recorded as short-term or long-term liabilities based on the estimated payment dates. The long-term managed services liabilities accrued were $29.1 million and $29.7 million as of March 31, 2019 and December 31, 2018, respectively.