Balance Sheet Components

9 Months Ended

Sep. 25, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

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



	September 25, 2020			December 31, 2019
Accounts receivable, net:
Accounts receivable	$	84,240		$	91,513
Less: allowances for doubtful accounts and sales returns	(2,887		)	(3,013		)
Total	$	81,353		$	88,500



	September 25, 2020		December 31, 2019
Inventories, net:
Raw materials	$	4,791	$	4,179
Work-in-process	1,954		1,633
Finished goods	21,784		14,080
Service-related spares	8,273		9,150
Total	$	36,802	$	29,042



	September 25, 2020		December 31, 2019
Prepaid expenses and other current assets:
French R&D tax credits receivable⁽¹⁾	$	6,170	$	7,343
Contract assets⁽²⁾	4,067		13,969
Deferred cost of revenue	2,062		2,631
Prepaid maintenance, royalty and property taxes	2,718		1,594
Capitalized sales commissions	1,502		1,309
Other	8,552		13,916
Total	$	25,071	$	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 total R&D tax credits receivable at September 25, 2020 were approximately $19.5 million and are expected to be recoverable from 2021 through 2024. See “Other long-term assets” for the long-term portion of the French R&D tax credits receivable.

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



	September 25, 2020			December 31, 2019
Property and equipment, net:
Machinery and equipment	$	71,874		$	75,229
Capitalized software	36,345			34,190
Construction in progress*	1,870			5,506
Leasehold improvements	37,436			15,170
Furniture and fixtures	2,779			6,036
Property and equipment, gross	150,304			136,131
Less: accumulated depreciation and amortization	(108,389		)	(113,203		)
Total	$	41,915		$	22,928

*During the third quarter of 2020, the Company completed construction of its leasehold improvements for the new headquarters facility and transferred $22.9 million of assets from Construction in progress to Leasehold improvements.



	September 25, 2020		December 31, 2019
Other long-term assets:
French R&D tax credits receivable⁽³⁾	$	13,345	$	15,899
Deferred tax assets	9,876		10,575
Equity investment	3,593		3,593
Other	9,438		11,238
Total	$	36,252	$	41,305

(3) See “Prepaid expenses and other current assets” for details related to French R&D tax credits receivable.



	September 25, 2020		December 31, 2019
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	18,806	$	19,454
Operating lease liability	6,653		8,881
Customer deposits	3,552		3,557
Accrued warranty	3,581		4,308
Accrued royalty payments	2,627		2,642
Accrued Avid litigation settlement	—		2,000
Contingent inventory reserves	1,323		2,208
Others	14,744		19,485
Total	$	51,286	$	62,535



	September 25, 2020		December 31, 2019
Other non-current liabilities:
Operating lease liability	$	23,833	$	25,766
Deferred revenue	6,921		6,333
Others	10,450		9,155
Total	$	41,204	$	41,254