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Balance Sheet Details | 3 Months Ended
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Mar. 31, 2018
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Details | Balance Sheet Details Accounts receivable, net consisted of the following (in thousands):
|  | March 31, 2018 |  | December 31, 2017
Accounts receivable |  | $ | 56,134 |  |  | $ | 81,793 |
Allowance for doubtful accounts |  | (388 | ) |  | (579 | )
Product return reserve (1) |  | — |  |  | (822 | )
|  | $ | 55,746 |  |  | $ | 80,392 |
(1) | With adoption of Topic 606 on January 1, 2018, the product return reserve is considered a contract liability and has been reclassified to accrued liabilities.
Inventory consisted of the following (in thousands):
|  | March 31, 2018 |  | December 31, 2017
Raw materials |  | $ | 2,244 |  |  | $ | 1,211 |
Finished goods |  | 24,817 |  |  | 30,318 |
|  | $ | 27,061 |  |  | $ | 31,529 |
Property and equipment, net consisted of the following (in thousands):
|  | March 31, 2018 |  | December 31, 2017
Test equipment |  | $ | 40,908 |  |  | $ | 39,952 |
Computer equipment and software |  | 33,206 |  |  | 32,175 |
Furniture and fixtures |  | 2,744 |  |  | 2,714 |
Leasehold improvements |  | 5,206 |  |  | 6,029 |
Total |  | 82,064 |  |  | 80,870 |
Accumulated depreciation and amortization |  | (67,256 | ) |  | (65,189 | )
|  | $ | 14,808 |  |  | $ | 15,681 |
Accrued liabilities consisted of the following (in thousands):
|  | March 31, 2018 |  | December 31, 2017
Accrued compensation and related benefits |  | $ | 18,367 |  |  | $ | 15,563 |
Accrued warranty and retrofit |  | 8,097 |  |  | 8,708 |
Accrued professional and consulting fees |  | 5,349 |  |  | 9,604 |
Accrued restructuring charges |  | 4,927 |  |  | 1,417 |
Accrued excess and obsolete inventory at contract manufacturers |  | 3,371 |  |  | 2,430 |
Accrued non-income related taxes |  | 1,604 |  |  | 1,778 |
Customer over payments |  | 968 |  |  | 1,050 |
Product return reserve |  | 959 |  |  | — |
Accrued insurance |  | 717 |  |  | 827 |
Accrued freight |  | 695 |  |  | 593 |
Accrued business events |  | — |  |  | 1,272 |
Accrued other |  | 3,729 |  |  | 6,037 |
|  | $ | 48,783 |  |  | $ | 49,279 |
Accrued Warranty and Retrofit The Company provides a standard warranty for its hardware products. Hardware generally has a one-, three- or five-year standard warranty from the date of shipment. Under certain circumstances, the Company also provides fixes on specifically identified performance failures for products that are outside of the standard warranty period and recognizes estimated costs related to retrofit activities upon identification of such product failures. The Company accrues for potential warranty and retrofit claims based on the Company’s historical product failure rates and historical costs incurred in correcting product failures along with other relevant information related to any specifically identified product failures. The Company’s warranty and retrofit accruals are based on estimates of losses that are probable based on information available. The adequacy of the accrual is reviewed on a periodic basis and adjusted, if necessary, based on additional information as it becomes available. Changes in the Company’s warranty and retrofit reserves in the periods as indicated were as follows (in thousands):
|  | Three Months Ended
|  | March 31, 2018 |  | April 1, 2017
Balance at beginning of period |  | $ | 8,708 |  |  | $ | 12,214 |
Provision for warranty and retrofit charged to cost of revenue |  | 1,469 |  |  | 1,862 |
Utilization of reserve |  | (2,080 | ) |  | (3,298 | )
Balance at end of period |  | $ | 8,097 |  |  | $ | 10,778 |
Accrued Restructuring Charges The Company adopted a restructuring plan in March 2017. This restructuring plan realigned the Company’s business, increasing its focus towards its investments in software defined access and cloud products, while reducing its expense structure in its traditional systems business. The Company began to take actions under this plan beginning in March 2017 and recognized $4.2 million of restructuring charges for the year ended December 31, 2017 consisting primarily of severance and other one-time termination benefits. Actions pursuant to this restructuring plan were complete as of December 31, 2017. The Company established a new restructuring plan in February 2018 to further realign its business resources based on the production releases of its platform offerings. The Company incurred restructuring charges of approximately $5.3 million, consisting of primarily of severance and other termination related benefits, in the first quarter of 2018. The following table summarizes the activities pursuant to the above restructuring plans (in thousands):
|  | Severance and Related Benefits |  | Facilities
Balance at December 31, 2017 |  | $ | 975 |  |  | $ | 442 |
Restructuring charges |  | 4,567 |  |  | 773 |
Cash payments |  | (1,501 | ) |  | (329 | )
Balance at March 31, 2018 |  | $ | 4,041 |  |  | $ | 886 |
Deferred revenue consisted of the following (in thousands):
|  | March 31, 2018 |  | December 31, 2017
Current: |  |  |  |
Products and services |  | $ | 10,675 |  |  | $ | 9,125 |
Extended warranty |  | 4,001 |  |  | 3,951 |
|  | 14,676 |  |  | 13,076 |
Long-term: |  |  |  |
Products and services |  | 493 |  |  | 18 |
Extended warranty |  | 20,219 |  |  | 20,627 |
|  | 20,712 |  |  | 20,645 |
|  | $ | 35,388 |  |  | $ | 33,721 |

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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