CERTAIN BALANCE SHEET COMPONENTS

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



	December 31,
	2018		2017
Inventories:
Raw materials	$	1,705	$	2,881
Work-in-process	991		933
Finished goods	12,267		10,130
Service-related spares	10,675		12,032
Total	$	25,638	$	25,976



	December 31,
	2018		2017
Prepaid expenses and other current assets:
French R&D tax credits receivable ⁽¹⁾	$	7,305	$	6,609
Contract assets ⁽²⁾	3,834		—
Deferred cost of revenue	3,671		4,440
Prepaid maintenance, royalty, rent, property taxes and VAT	3,497		3,867
Capitalized commission	1,098		—
Restricted cash	—		530
Other	3,875		3,485
Total	$	23,280	$	18,931

(1) The Company’s 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 and during the year ended December 31, 2018 and 2017, the French government approved the 2014 and 2013 claims and refunded $6.4 million to the TVN French Subsidiary in each of the periods, respectively. The remaining R&D tax credits receivable at December 31, 2018 were approximately $26.5 million and are expected to be recoverable from 2019 through 2022 with $7.3 million reported as a component of “Prepaid and other Current Assets” and $19.2 million reported as a component of “Other Long-term Assets” on the Company’s Consolidated Balance Sheets.

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



	December 31,
	2018			2017
Property and equipment, net:
Machinery and equipment	$	75,094		$	87,121
Capitalized software	32,696			35,139
Leasehold improvements	14,951			15,051
Furniture and fixtures	6,049			6,534
Property and equipment, gross	128,790			143,845
Less: accumulated depreciation and amortization	(106,469		)	(114,580		)
Total	$	22,321		$	29,265



	December 31,
	2018		2017
Other long-term assets:
French R&D tax credits receivable	$	19,249	$	22,322
Deferred tax assets	8,695		10,462
Equity investment	3,593		3,593
Other	6,840		6,536
Total	$	38,377	$	42,913



	December 31,
	2018		2017
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	21,451	$	16,414
Accrued warranty	4,869		4,381
Customer deposits	4,642		5,020
Contingent inventory reserves	2,500		3,806
Accrued TVN VDP, current ⁽¹⁾	1,585		3,186
Accrued royalty payments	1,998		2,195
Accrued Avid litigation settlement fees, current	1,500		—
Other	14,216		13,703
Total	$	52,761	$	48,705

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