Financial Statement Details

Short-term investments

At December 31, 2015, the Company had certain short-term investments in trading securities which were acquired through its acquisition of Ctrack. The Company recognized a $70,000 gain on such securities during the year ended December 31, 2015, which is included in other income (expense), net, in the consolidated statements of operations. The Company did not have any gains or losses on trading securities during the year ended December 31, 2014.

Inventories

Inventories consist of the following (in thousands):



	December 31,
	2015		2014
Finished goods	$	47,094	$	33,045
Raw materials and components	8,743		4,758
	$	55,837	$	37,803

Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):



	December 31,
	2015			2014
Land	$	229		$	—
Buildings	2,084			—
Test equipment	47,243			53,019
Computer equipment and purchased software	11,399			11,247
Product tooling	3,832			3,535
Furniture and fixtures	2,151			1,824
Vehicles	1,042			—
Leasehold improvements	3,664			4,103
	71,644			73,728
Less—accumulated depreciation and amortization	(62,832		)	(68,449		)
	$	8,812		$	5,279

At December 31, 2015, the Company had vehicles and equipment under capital leases of $1.5 million, net of accumulated amortization of $0.2 million. The Company did not have any capital leases at December 31, 2014.

Depreciation and amortization expense relating to property, plant and equipment, including equipment under capital leases, was $5.0 million, $6.3 million and $7.9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):



	December 31,
	2015		2014
Royalties	$	2,740	$	4,035
Payroll and related expenses	4,406		8,038
Warranty obligations	932		1,196
Market development funds and price protection	2,805		2,502
Professional fees	1,060		780
Deferred revenue	1,836		962
Restructuring	1,044		1,886
Acquisition-related earn out and other	5,274		—
Other	5,516		4,445
	$	25,613	$	23,844

Accrued Warranty Obligations

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



	Year Ended December 31,
	2015			2014
Warranty liability at beginning of period	$	1,196		$	2,244
Additions charged to operations	1,090			1,345
Deductions from liability	(1,354		)	(2,393		)
Warranty liability at end of period	$	932		$	1,196