BALANCE SHEET COMPONENTS

The following tables provide details of selected balance sheet components (in thousands):



	September 29, 2017			December 31, 2016
Accounts receivable, net:
Accounts receivable	$	77,320		$	91,596
Less: allowances for doubtful accounts, returns and discounts	(5,738		)	(4,831		)
Total	$	71,582		$	86,765



	September 29, 2017		December 31, 2016
Prepaid expenses and other current assets:
Deferred cost of revenue	$	6,217	$	6,856
French R&D tax credits receivable⁽¹⁾	6,475		5,895
Prepaid maintenance, royalty, rent, property taxes and value added tax	4,942		5,526
Prepaid customer incentive⁽²⁾	1,124		1,162
Restricted cash⁽³⁾	803		731
Other	3,121		6,149
Total	$	22,682	$	26,319

(1) The Company’s acquired TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government. The R&D tax credit receivables at September 29, 2017 were approximately $26.5 million and are expected to be recoverable from 2018 through 2021 with $6.5 million reported under “Prepaid and other Current Assets” and $20.0 million reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets.

(2) On September 26, 2016, the Company issued a warrant to purchase shares of its common stock (the “Warrant”) to Comcast pursuant to which Comcast may, subject to certain vesting provisions, purchase up to 7,816,162 shares of the Company’s common stock subject to adjustment in accordance with the terms of the Warrant, for a per share exercise price of $4.76. The portion of the Warrant which vested on September 26, 2016 had a value of approximately $1.6 million and is deemed a customer incentive paid upfront and cumulatively, $0.5 million of this prepaid incentive has been recorded as a reduction to the Company’s net revenues from Comcast. The remaining $1.1 million of this prepaid incentive is reported as an asset under “Prepaid expenses and other current assets” on the Company’s Condensed Consolidated Balance Sheet as of September 29, 2017. The Company considers this asset to be recoverable based on the expectation of Comcast’s future purchases of the pertinent products.

(3) The restricted cash balances are held as cash collateral security for certain bank guarantees. These restricted funds are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. Additionally, as of September 29, 2017, the Company had approximately $1.2 million of restricted cash for the bank guarantee associated with the TVN French Subsidiary’s office building lease. This amount is reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets.



	September 29, 2017		December 31, 2016
Inventories:
Raw materials	$	3,825	$	9,889
Work-in-process	1,290		2,318
Finished goods	14,146		17,776
Service-related spares	12,493		11,210
Total	$	31,754	$	41,193



	September 29, 2017			December 31, 2016
Property and equipment, net:
Machinery and equipment	$	86,971		$	97,989
Capitalized software	34,496			34,519
Leasehold improvements	14,745			14,455
Furniture and fixtures	6,797			8,993
Property and equipment, gross	143,009			155,956
Less: accumulated depreciation and amortization	(112,278		)	(123,792		)
Total	$	30,731		$	32,164



	September 29, 2017		December 31, 2016
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	14,866	$	19,377
Accrued TVN VDP, current ⁽¹⁾	3,519		6,597
Accrued warranty	4,341		4,862
Customer deposits	4,526		4,537
Contingent inventory reserves	3,840		2,210
Accrued Avid litigation settlement, current ⁽²⁾	2,500		—
Accrued royalty payments	2,325		1,912
Others	16,911		15,655
Total	$	52,828	$	55,150

(1) See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

(2) See Note 18, “Commitments and Contingencies-Legal Proceedings,” for additional information on the Company’s accrual for the Avid litigation settlement.