Balance Sheet Components

Accounts receivable



	June 30,
	2019			2018
	(in thousands)
Accounts receivable	$	48,401		$	52,687
Less: Allowance for price adjustments	(24,075		)	(18,902		)
Less: Allowance for doubtful accounts	(30		)	(30		)
Accounts receivable, net	$	24,296		$	33,755

Inventories



	June 30,
	2019		2018
	(in thousands)
Raw materials	$	59,076	$	47,097
Work in-process	38,214		35,243
Finished goods	14,353		7,842
	$	111,643	$	90,182

Other current assets:



	June 30,
	2019		2018
	(in thousands)
VAT receivable	$	30,769	$	17,601
Other prepaid expenses	2,745		2,121
Prepaid insurance	939		906
Prepaid maintenance	481		556
Prepayments to supplier	583		227
Prepaid income tax	267		761
Customs deposit	114		5,749
Lease financing cost	825		960
Other receivables	379		670
	$	37,102	$	29,551

Property, plant and equipment, net



	June 30,
	2019			2018
	(in thousands)
Land	$	4,877		$	4,877
Building	36,205			4,325
Manufacturing machinery and equipment	303,750			265,192
Equipment and tooling	20,739			16,605
Computer equipment and software	34,048			25,686
Office furniture and equipment	3,243			2,314
Leasehold improvements	53,597			29,900
Land use rights	8,760			9,089
	465,219			357,988
Less: accumulated depreciation	(252,982		)	(225,184		)
	212,237			132,804
Equipment and construction in progress	197,500			198,852
Property, plant and equipment, net	$	409,737		$	331,656

Total depreciation expense was $31.9 million, $29.2 million and $27.2 million for fiscal year 2019, 2018 and 2017, respectively.

The gross amount of computer software recorded under capital leases was $13.7 million and $8.2 million and the related accumulated depreciation was $8.2 million and $7.3 million, respectively, at June 30, 2019 and 2018.

The Company capitalized $0.8 million, $0.3 million and 0.2 million of software development costs during the fiscal year 2019, 2018 and 2017, respectively. Amortization of capitalized software development costs was $0.5 million in fiscal year 2019, and $0.6 million in each of the fiscal year 2018 and 2017, respectively. Unamortized capitalized software development costs in each of the periods presented at June 30, 2019 and 2018 were $0.9 million and $0.7 million, respectively.

There is no private land ownership in China. Individuals and companies are permitted to acquire land use rights for specific purpose. In March 2017, the JV Company received the necessary land use right certificate from the PRC government. The land use rights will expire on November 30, 2066.

Other long-term assets



	June 30,
	2019		2018
	(in thousands)
Prepayments for property and equipment	$	4,846	$	17,599
Investments in privately held companies	700		700
Lease financing costs	1,758		1,922
VAT long-term receivable	—		3,396
Customs deposit	980		1,589
Other long-term deposits	889		2,252
Office leases deposits	1,031		853
Other	413		387
	$	10,617	$	28,698

Intangible assets, net



	June 30,
	2019			2018
	(in thousands)
Patents and technology rights	$	18,037		$	17,633
Trade name	268			268
Customer relationships	1,150			1,150
	19,455			19,051
Less: accumulated amortization	(2,842		)	(2,729		)
	16,613			16,322
Goodwill	269			269
Intangible assets, net	$	16,882		$	16,591

The carrying value of goodwill was $0.3 million for fiscal years 2019, 2018 and 2017.

Intangible assets of patents and technology rights are primarily related to a license agreement that the Company entered into with STMicroelectronics International N.V. (“STMicro”) on September 5, 2017, pursuant to which STMicro granted the Company a world-wide, royalty-free and fully-paid license to use its technologies to develop, market and distribute certain digital multi-phase controller products, which have been offered by STMicro. This agreement allows the Company to develop and market products in a new market, primarily in the computer server segment. Under the license agreement, the Company agreed to pay a total price in cash of $17.0 million based on the payment schedule of approximately $10.1 million, $6.7 million, and $0.2 million in calendar year 2017, 2018 and 2019, respectively. As of June 30, 2019, the Company recorded $16.2 million of intangible assets related to STMicro. The Company begins amortizing such license fees when the technology has met the Company's qualification.

Amortization expense for intangible assets was $113,000, $76,000 and $2,000 for the years ended June 30, 2019, 2018 and 2017, respectively.

Estimated future minimum amortization expense of intangible assets is as follows (in thousands):



Year ending June 30,
2020	$	925
2021	3,360
2022	3,360
2023	3,286
2024	3,249
Thereafter	2,433
	$	16,613

Accrued liabilities



	June 30,
	2019		2018
	(in thousands)
Accrued compensation and benefits	$	16,385	$	18,484
Warranty accrual	623		535
Stock rotation accrual	1,921		1,750
Accrued professional fees	1,721		1,922
Accrued inventory	857		667
Accrued facilities related expenses	4,233		2,163
Accrued financing lease costs	728		1,510
Accrued property, plant and equipment	11,527		18,145
Other accrued expenses	6,080		4,665
	$	44,075	$	49,841

The activity in the warranty accrual, included in accrued liabilities is as follows:



	Year Ended June 30,
	2019			2018			2017
	(in thousands)
Beginning balance	$	535		$	1,866		$	1,495
Addition	236			(147		)	1,476
Released	—			(1,000		)	(580		)
Utilization	(148		)	(184		)	(525		)
Ending balance	$	623		$	535		$	1,866

The activity in the stock rotation accrual, included in accrued liabilities is as follows:



	Year Ended June 30,
	2019			2018			2017
	(in thousands)
Beginning balance	$	1,750		$	1,871		$	1,988
Addition	5,267			2,714			4,819
Utilization	(5,096		)	(2,835		)	(4,936		)
Ending balance	$	1,921		$	1,750		$	1,871

Deferred margin

Deferred margin consists of the following:



	June 30,
	2019		2018
	(in thousands)
Deferred revenue	$	—	$	2,555
Deferred costs	—		(890		)
Deferred margin	$	—	$	1,665

Other long-term liabilities:



	June 30, 2019			June 30, 2018
	(in thousands)
Deferred rent	$	65		$	238
Customer deposits	10,000		*	—
Computer software liabilities	3,701			—
Other	155			755
Other long-term liabilities	$	13,921		$	993

* Customer deposit from our customer A and customer B for securing future shipment from the Company