Balance Sheet Components (Tables)

9 Months Ended

Sep. 28, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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



	September 28, 2018			December 31, 2017
Accounts receivable, net:
Accounts receivable	$	81,059		$	74,475
Less: allowances for doubtful accounts and sales returns	(3,073		)	(4,631		)
Total	$	77,986		$	69,844

Inventories



	September 28, 2018		December 31, 2017
Inventories:
Raw materials	$	1,374	$	2,881
Work-in-process	847		933
Finished goods	9,966		10,130
Service-related spares	11,146		12,032
Total	$	23,333	$	25,976

Prepaid, and Other Current Assets



	September 28, 2018		December 31, 2017
Prepaid expenses and other current assets:
French R&D tax credits receivable⁽¹⁾	$	7,453	$	6,609
Deferred cost of revenue	4,700		4,440
Contract assets⁽²⁾	3,656		—
Prepaid maintenance, royalty, rent, property taxes and value added tax	3,609		3,867
Capitalized commission	1,259		—
Restricted cash⁽³⁾	222		530
Other	3,327		3,485
Total	$	24,226	$	18,931

(1) The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche 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 credits receivable at September 28, 2018 were approximately $25.6 million and are expected to be recoverable from 2019 through 2022 with $7.5 million reported as a component of “Prepaid expenses and other current assets” and $18.1 million reported as a component of “Other long-term assets” on the Company’s Condensed Consolidated Balance Sheets.

(2) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration.

(3) Amounts represent 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 These restricted funds are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party.

Property, Plant and Equipment



	September 28, 2018			December 31, 2017
Property and equipment, net:
Machinery and equipment	$	88,167		$	87,121
Capitalized software	35,887			35,139
Leasehold improvements	14,990			15,051
Furniture and fixtures	6,506			6,534
Property and equipment, gross	145,550			143,845
Less: accumulated depreciation and amortization	(121,399		)	(114,580		)
Total	$	24,151		$	29,265

Other Long Term Assets



	September 28, 2018		December 31, 2017
Other long-term assets:
R&D tax credits receivable	$	18,104	$	22,322
Deferred tax assets	9,362		10,462
Equity investment	3,593		3,593
Others⁽¹⁾	7,565		6,536
Total	$	38,624	$	42,913

Accrued Liabilities



	September 28, 2018		December 31, 2017
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	17,405	$	16,414
Accrued warranty	4,749		4,381
Customer deposits	3,638		5,020
Contingent inventory reserves	3,291		3,806
Accrued TVN VDP, current ⁽¹⁾	2,100		3,186
Accrued royalty payments	2,077		2,195
Accrued Avid litigation settlement, current	1,500		—
Others	15,974		13,703
Total	$	50,734	$	48,705

(1) See Note 8, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.