Balance Sheet Components

6 Months Ended

Jun. 26, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

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



	June 26, 2020			December 31, 2019
Accounts receivable, net:
Accounts receivable	$	77,163		$	91,513
Less: allowances for doubtful accounts and sales returns	(2,382		)	(3,013		)
Total	$	74,781		$	88,500



	June 26, 2020		December 31, 2019
Inventories, net:
Raw materials	$	3,776	$	4,179
Work-in-process	1,458		1,633
Finished goods	18,546		14,080
Service-related spares	8,317		9,150
Total	$	32,097	$	29,042



	June 26, 2020		December 31, 2019
Prepaid expenses and other current assets:
French R&D tax credits receivable⁽¹⁾	$	—	$	7,343
Contract assets⁽²⁾	4,289		13,969
Deferred cost of revenue	5,072		2,631
Prepaid maintenance, royalty, rent, and property taxes	3,153		1,594
Capitalized sales commissions	1,529		1,309
Other	9,212		13,916
Total	$	23,255	$	40,762

(1) The Company’s 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 June 26, 2020 were approximately $17.8 million and are expected to be recoverable from 2021 through 2023. See “Other long-term assets”.

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



	June 26, 2020			December 31, 2019
Property and equipment, net:
Machinery and equipment	$	73,508		$	75,229
Capitalized software	35,027			34,190
Construction in progress*	25,549			5,506
Leasehold improvements	15,674			15,170
Furniture and fixtures	8,939			6,036
Property and equipment, gross	158,697			136,131
Less: accumulated depreciation and amortization	(117,356		)	(113,203		)
Total	$	41,341		$	22,928

*During fiscal 2019, the Company entered into a lease for a new facility which will become the Company’s new headquarters in 2020. The new lease commenced in May 2019, as the facility was made available to the Company for constructing leasehold improvements. Construction in progress includes $22.9 million for constructing leasehold improvements in the new headquarters facility.



	June 26, 2020		December 31, 2019
Other long-term assets:
French R&D tax credits receivable	$	17,843	$	15,899
Deferred tax assets	9,958		10,575
Equity investment	3,593		3,593
Other	9,808		11,238
Total	$	41,202	$	41,305



	June 26, 2020		December 31, 2019
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	16,163	$	19,454
Operating lease liability (short-term)	7,995		8,881
Customer deposits	4,767		3,557
Accrued warranty	3,818		4,308
Accrued royalty payments	2,657		2,642
Accrued Avid litigation settlement, current	2,000		2,000
Contingent inventory reserves	1,453		2,208
Others	16,513		19,485
Total	$	55,366	$	62,535



	June 26, 2020		December 31, 2019
Other non-current liabilities:
Operating lease liability (long-term)	$	24,604	$	25,766
Deferred revenue (long-term)	7,089		6,333
Others	9,415		9,155
Total	$	41,108	$	41,254