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Balance Sheet Information

3 Months Ended

Mar. 31, 2012

Note 4—Balance Sheet Information

Short-term Investments

Available-for-sale securities consist of the following (in thousands):

	March 31, 2012
	Amortized Cost		Gains in Accumulated Other Comprehensive Income		Losses in Accumulated Other Comprehensive Income			Estimated Fair Value
Government Agency Securities	$	54,782	$	44	$	—		$	54,826

FDIC insured corporate bonds	106,331		45		—			106,376

Treasury bills	86,626		—		(2		)	86,624

Total available-for-sale securities	$	247,739	$	89	$	(2	)	$	247,826

	December 31, 2011
	Amortized Cost		Gains in Accumulated Other Comprehensive Income		Losses in Accumulated Other Comprehensive Income		Estimated Fair Value
Government Agency Securities	$	88,585	$	119	$	—	$	88,704

FDIC insured corporate bonds	114,640		56		—		114,696

Treasury bills	70,147		44		—		70,191

Total available-for-sale securities	$	273,372	$	219	$	—	$	273,591

During the three months ended March 31, 2012, available-for-sale securities were sold for total proceeds of $43.6 million. The gross realized gains on these sales were minimal for the three months ended March 31, 2012. For purpose of determining gross realized gains, the cost of securities sold is based on specific identification. Net unrealized holding losses on available-for-sale securities of $0.1 million for the three months ended March 31, 2012, have been included in accumulated other comprehensive income. During the three months ended March 31, 2011, available-for-sale securities were sold for total proceeds of $122.1 million. The gross realized gains on these sales were minimal for the three months ended March 31, 2011. Net unrealized holding gains on available-for-sale securities of less than $0.1 million for the three months ended March 31, 2011, have been included in accumulated other comprehensive income.

Contractual maturities of available-for-sale debt securities at March 31, 2012, are as follows (in thousands):

	Estimated Fair Value
Due in one year or less	$	33,272

Due in 1—2 years	214,554

Total investments in debt securities	$	247,826

Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Restricted Cash

As of March 31, 2012 and December 31, 2011, restricted cash consisted of $0.9 million and $0.6 million, respectively, which serves as collateral for bank guarantees that provide financial assurance that the Company will fulfill certain customer obligations. This cash is held in custody by the issuing bank, and is restricted as to withdrawal or use while the related bank guarantees are outstanding.

Accounts Receivable, net

Accounts receivable are shown net of the allowance for doubtful accounts of $0.5 million as of March 31, 2012 and December 31, 2011.

Inventories

Inventories are stated at the lower of cost (principally first-in, first-out) or market. Inventories consist of (in thousands):

	March 31,		December 31,
	2012		2011
Raw materials	$	60,786	$	57,169
Work in process	25,714		20,118
Finished goods	16,776		36,147
	$	103,276	$	113,434

Accrued Warranty

We estimate the costs that may be incurred under the warranty we provide and record a liability in the amount of such costs at the time the related revenue is recognized. Factors that affect our warranty liability include product failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. We periodically assess the adequacy of our recognized warranty liability and adjust the amount as necessary. Changes in our warranty liability during the period are as follows (in thousands):

	March 31,
	2012			2011
Balance as of the beginning of period	$	9,778		$	9,238
Warranties issued during the period	1,007			3,014
Settlements made during the period	(1,951		)	(2,121		)
Balance as of the end of period	$	8,834		$	10,131