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Balance Sheet Components | 9 Months Ended
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Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Components | BALANCE SHEET COMPONENTS The following tables provide details of selected balance sheet components (in thousands):
| September 30, 2016 |  | December 31, 2015
Accounts receivable, net: |  |  |
Accounts receivable | $ | 103,511 |  |  | $ | 73,855 |
Less: allowances for doubtful accounts, returns and discounts | (4,433 | ) |  | (4,340 | )
Total | $ | 99,078 |  |  | $ | 69,515 |
| September 30, 2016 |  | December 31, 2015
Prepaid expenses and other current assets: |  |  |
Prepaid inventories to contract manufacturer(1) | $ | 4,736 |  |  | $ | 8,500 |
Prepaid maintenance, royalty, rent and property taxes | 7,003 |  |  | 5,974 |
Other Prepayments | 4,730 |  |  | 2,762 |
Deferred cost of revenue | 10,470 |  |  | 4,601 |
French R&D tax credits receivable(2) | 6,279 |  |  | — |
Restricted cash(3) | 1,341 |  |  | 1,093 |
Other | 3,960 |  |  | 2,073 |
Total | $ | 38,519 |  |  | $ | 25,003 |
(1) From time to time, the Company makes advance payment to a supplier for future inventory in order to secure more favorable pricing. As of September 30, 2016, the Company had $8.5 million of prepaid inventory and accounts payable of approximately $3.8 million with one of its suppliers. Based on the agreement with this supplier, the Company has the right to set off the amount owed with the amount owed by the supplier, and in October 2016, according to the terms of the supplier agreement, the Company notified the supplier of its intent to net the balances in the fourth quarter of 2016. Based on the guidance in ASC 210-20, as of September 30, 2016, the Company took a net position on the balance sheet and elected to net $3.8 million of prepaid inventories with accounts payable. (2) The Company’s acquired TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The French 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 French R&D tax credits recoverable are subject to audit by the French government and during the second quarter of 2016, the French government approved the 2012 claim and refunded $5.8 million to the TVN French Subsidiary. The remaining R&D tax credit receivables at September 30, 2016 were approximately $25.1 million and are expected to be recoverable from 2017 through 2020 with $6.3 million reported under “Prepaid and other Current Assets” and $18.8 million reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets. Pursuant to the TVN Purchase Agreement, the Company is indemnified by the selling shareholders with respect to the validity and recoverability of the outstanding TVN French Subsidiary R&D tax credit receivables. (3) The restricted cash balances are primarily held as cash collateral security for certain bank guarantees. These restricted funds are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. Additionally, as of September 30, 2016, the Company recorded approximately $1.1 million of restricted cash for the bank guarantee associated with the TVN French Subsidiary’s office building lease. This amount is reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets.
| September 30, 2016 |  | December 31, 2015
Inventories: |  |  |
Raw materials | $ | 9,417 |  |  | $ | 5,421 |
Work-in-process | 1,328 |  |  | 1,950 |
Finished goods | 13,397 |  |  | 19,827 |
Service-related spares | 11,686 |  |  | 11,621 |
Total | $ | 35,828 |  |  | $ | 38,819 |
| September 30, 2016 |  | December 31, 2015
Property and equipment, net: |  |  |
Furniture and fixtures | $ | 9,110 |  |  | $ | 7,808 |
Machinery and equipment | 99,172 |  |  | 93,010 |
Capitalized software | 34,703 |  |  | 29,391 |
Leasehold improvements | 14,005 |  |  | 10,000 |
Property and equipment, gross | 156,990 |  |  | 140,209 |
Less: accumulated depreciation and amortization | (121,845 | ) |  | (113,197 | )
Total | $ | 35,145 |  |  | $ | 27,012 |
| September 30, 2016 |  | December 31, 2015
Accrued Liabilities: |  |  |
Accrued employee compensation and related expenses | $ | 18,420 |  |  | $ | 12,083 |
Accrued sales and use tax and property taxes | 1,861 |  |  | 1,743 |
Accrued warranty | 5,079 |  |  | 3,913 |
Accrued royalty payments | 2,597 |  |  | 873 |
Contingent inventory reserves | 2,485 |  |  | 1,315 |
Customer deposits | 5,020 |  |  | 953 |
Others | 14,907 |  |  | 10,474 |
Total | $ | 50,369 |  |  | $ | 31,354 |
The TVN acquisition was subject to post-closing adjustments capped at (i) the difference between €76 million (approximately $83.3 million as converted from euros into U.S. dollars using an agreed upon average exchange rate) and $75 million, with respect to an adjustment based on TVN’s 2015 revenue, and (ii) up to $5 million with respect to an adjustment based on TVN’s 2015 backlog that ships during the first half of 2016. The Company paid $3.5 million upon the finalization of the revenue and working capital adjustments in the second quarter of 2016 and $2.5 million upon the finalization of the backlog adjustment in the third quarter of 2016. As of September 30, 2016, there were no amounts of TVN contingent consideration which remained outstanding.

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