Balance Sheet Details

Inventories

Inventories consist of the following (in thousands):



	June 30, 2015		December 31, 2014
Finished goods	$	35,606	$	33,045
Raw materials and components	4,002		4,758
	$	39,608	$	37,803

Accrued Expenses

Accrued expenses consist of the following (in thousands):



	June 30, 2015		December 31, 2014
Royalties	$	5,709	$	4,035
Payroll and related expenses	14,760		8,038
Product warranty	852		1,196
Market development funds and price protection	2,924		2,502
Professional fees	1,043		780
Deferred revenue	592		962
Restructuring	70		1,886
Acquisition-related earn out	1,446		—
Other	3,023		4,445
	$	30,419	$	23,844

Accrued Warranty Obligations

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



	Six Months Ended June 30,
	2015			2014
Warranty liability at beginning of period	$	1,196		$	2,244
Additions charged to operations	343			1,199
Deductions from liability	(687		)	(1,863		)
Warranty liability at end of period	$	852		$	1,580

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