Balance Sheet Details

3 Months Ended

Mar. 31, 2012

2. Balance Sheet Details

Marketable Securities

The Company's portfolio of available-for-sale securities by contractual maturity consists of the following (in thousands):


March 31, 2012	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	3,125	$	—	$	(1	)	$	3,124
Municipal bonds		1 or less		8,953		—		(1	)		8,952
Certificates of deposit		1 or less		5,518		2		—			5,520
Corporate debentures / bonds		1 or less		13,185		—		(3	)		13,182
Marketable equity securities		N/A		38		—		—			38

Total short-term marketable securities				30,819		2		(5	)		30,816

Available-for-sale:
Government agency securities		1 to 2		4,498		4		—			4,502
Municipal bonds		1 to 2		5,926		14		—			5,940
Certificates of Deposit		1 to 2		3,077		6		—			3,083
Corporate debentures / bonds		1 to 2		3,121		—		(5	)		3,116

Total long-term marketable securities				16,622		24		(5	)		16,641

			$	47,441	$	26	$	(10	)	$	47,457


December 31, 2011	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Corporate debentures/bonds		1 or less	$	8,615	$	—	$	(3	)	$	8,612
Municipal bonds		1 or less		8,390		—		(6	)		8,384
Certificates of deposit		1 or less		4,319		2		—			4,321
Government agency securities		1 or less		6,913		—		(1	)		6,912
Marketable equity securities		1 or less		38		—		—			38

Total short-term marketable securities				28,275		2		(10	)		28,267

Available-for-sale:
Corporate debentures/bonds		1 to 2		5,967		2		—			5,969
Certificates of deposit		1 to 2		3,797		—		(9	)		3,788
Government agency securities		1 to 2		3,734		4		—			3,738

Total long-term marketable securities				13,498		6		(9	)		13,495

			$	41,773	$	8	$	(19	)	$	41,762

The Company's available-for-sale securities are carried on the condensed consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss) on the consolidated balance sheet, which is a separate component of stockholders' equity. Realized gains and losses on the sale of available-for-sale marketable securities are determined using the specific-identification method.

As of March 31, 2012, the Company recorded a net unrealized gain of $16,000. The Company's net unrealized gain is the result of market conditions affecting its fixed-income, debt and equity securities, which are included in accumulated other comprehensive income (loss) in the condensed consolidated balance sheet for the period then ended.

Inventories

Inventories consist of the following (in thousands):


	March 31, 2012		December 31, 2011
Finished goods	$	38,268	$	35,211
Raw materials and components		5,007		7,068

	$	43,275	$	42,279

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	March 31, 2012		December 31, 2011
Royalties	$	5,419	$	5,861
Payroll and related expenses		10,797		8,706
Product warranty		1,738		1,525
Market development fund and price protection		1,816		1,750
Deferred rent		1,266		1,135
Professional fees		554		1,213
Other		6,366		4,854

	$	27,956	$	25,044

Accrued Warranty Obligations

Accrued warranty obligations consist of the following (in thousands):


	Three Months Ended March 31,
	2012			2011
Warranty liability at beginning of period	$	1,525		$	2,279
Additions charged to operations		1,267			864
Deductions from liability		(1,054	)		(794	)

Warranty liability at end of period	$	1,738		$	2,349

The Company accrues warranty costs based on estimates of future warranty-related replacement, repairs or rework of products. The Company generally provides one to three years of coverage for products following the date of purchase and the Company accrues the estimated cost of warranty coverage as a component of cost of revenues in the condensed consolidated statements of operations and comprehensive income (loss) at the time revenue is recognized. In estimating our future warranty obligations we consider various relevant factors, including the historical frequency and volume of claims, and the cost to replace or repair products under warranty.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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