Balance Sheet Components

Certain balance sheet components are as follows:



	January 25, 2015		January 26, 2014
	(In thousands)
Inventories:
Raw materials	$	156,846	$	126,896
Work in-process	91,778		94,844
Finished goods	234,269		166,025
Total inventories	$	482,893	$	387,765



	January 25, 2015			January 26, 2014			Estimated Useful Life
	(In thousands)						(In years)
Property and Equipment:
Land	$	218,496		$	218,496		(A)
Building	19,268			19,268			5-25
Test equipment	397,319			412,862			3-5
Software and licenses	112,967			120,435			3-5
Leasehold improvements	173,691			178,884			(B)
Computer equipment	152,733			204,344			3
Office furniture and equipment	48,692			58,874			5
Capital leases	28,481			28,481			(B)
Construction in process	27,610			41,176			(C)
Total property and equipment, gross	1,179,257			1,282,820
Accumulated depreciation and amortization	(621,975		)	(700,080		)
Total property and equipment, net	$	557,282		$	582,740

(A) Land is a non-depreciable asset.

(B) Leasehold improvements and capital leases are amortized based on the lesser of either the asset’s estimated useful life or the remaining expected lease term.

Depreciation expense for fiscal years 2015, 2014 and 2013 was $143.1 million, $164.0 million and $157.6 million, respectively.

Accumulated amortization of leasehold improvements and capital leases was $139.6 million and $146.4 million at January 25, 2015 and January 26, 2014, respectively. Amortization of leasehold improvements and capital leases is included in depreciation and amortization expense.



	January 25, 2015		January 26, 2014
	(In thousands)
Accrued Liabilities:
Deferred revenue (1)	$	292,735	$	268,808
Customer related liabilities (2)	146,724		163,945
Accrued payroll and related expenses	112,173		109,721
Professional service fees	17,025		13,572
Facilities related liabilities	7,603		5,216
Warranty accrual (3)	7,523		7,571
Taxes payable, short- term	2,810		2,378
Coupon interest on Notes	2,542		2,500
Accrued legal settlement (4)	—		30,600
Other	13,672		16,794
Total accrued liabilities and other	$	602,807	$	621,105

(1) The increase in fiscal year 2015 compared to fiscal year 2014 was due primarily to higher volumes with certain distributors.

(2) This includes primarily accrued customer programs. Please refer to Note 1 of these Notes to the Consolidated Financial Statements for discussion regarding the nature of accrued customer programs and their accounting treatment related to our revenue recognition policies and estimates.

(3) Please refer to Note 10 of these Notes to the Consolidated Financial Statements for discussion regarding the warranty accrual.

(4) Please refer to Note 4 and Note 12 of these Notes to the Consolidated Financial Statements for discussion regarding the 3dfx litigation.



	January 25, 2015		January 26, 2014
	(In thousands)
Other Long Term Liabilities:
Deferred income tax liability	$	232,307	$	157,953
Income tax payable	120,961		119,977
Deferred revenue	107,838		172,199
Asset retirement obligations	7,428		11,056
Other	20,394		13,940
Total other long-term liabilities	$	488,928	$	475,125