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Balance Sheet Components | 12 Months Ended
--- | ---
Aug. 31, 2012
Balance Sheet Components |
Balance Sheet Components |
3. Balance Sheet Components Inventories Inventories as of August 31, 2012 and 2011 consist of the following (in thousands):
|  | August 31, 2012 |  | August 31, 2011 |
--- | --- | --- | --- | --- | ---
Raw materials |  | $ | 2,999 |  | $ | 3,450 |
Work in process |  |  | 4,065 |  |  | 3,287 |
Finished goods |  |  | 5,952 |  |  | 9,480 |
Total |  | $ | 13,016 |  | $ | 16,217 |
Inventory write-downs to estimated net realizable values for the years ended August 31, 2012, 2011 and 2010 were $3,148 thousand, $5,793 thousand and $40 thousand, respectively. Property, Plant and Equipment Property, plant and equipment as of August 31, 2012 and 2011 consist of the following (in thousands):
|  | August 31, 2012 |  | August 31, 2011 |
--- | --- | --- | --- | --- | ---
Buildings and improvements |  | $ | 14,501 |  | $ | 12,924 |
Machinery and equipment |  |  | 64,267 |  |  | 50,669 |
Leasehold improvements |  |  | 3,143 |  |  | 3,123 |
Other equipment |  |  | 2,249 |  |  | 2,136 |
Construction in progress |  |  | 2,546 |  |  | 8,159 |
Total property, plant and equipment |  |  | 86,706 |  |  | 77,011 |
Less: Accumulated depreciation, amortization and impairment(1) |  |  | (40,064 | ) |  | (25,207 | )
Property, plant and equipment, net |  | $ | 46,642 |  | $ | 51,804 |
(1) Includes impairment charge of $7,507 thousand on certain of the Company's property, plant and equipment for the year ended August 31, 2012. Property, plant and equipment pledged as collateral for the Company's notes payable and lines of credit were $9.9 million and $12.8 million as of August 31, 2012 and 2011, respectively. In the fourth quarter of fiscal 2012, due to a continued slowdown in demand for the Company's LED products and competitive pricing pressure, the Company experienced significant revenues declines and negative gross margins. The Company's market capitalization had also fallen below its net book value based on the quoted market price of common stock for a sustained period of time. Management reviewed the Company's long-lived assets for impairment and recognized an impairment charge of $7,507 thousand on certain of its property, plant and equipment for the year ended August 31, 2012 based on the present value of expected future net cash flows discounted at the weighted average cost of capital, as well as third-party independent valuations for its machinery and equipment. The impairment charge was primarily related to machinery and equipment used in the manufacturing of LED chips. No impairment charge was recorded in fiscal 2011. Intangible Assets Intangible assets as of August 31, 2012 and 2011 consist of the following (in thousands):
|  | August 31, 2012 |
--- | --- | --- | ---
|  | Weighted Average Amortization Period (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |
Patents and trademarks |  |  | 17 |  | $ | 585 |  | $ | 146 |  | $ | 439 |
Acquired technology |  |  | 4 |  |  | 167 |  |  | 101 |  |  | 66 |
Customer relationships |  |  | 5 |  |  | 1,337 |  |  | 290 |  |  | 1,047 |
Total |  |  |  |  | $ | 2,089 |  | $ | 537 |  | $ | 1,552 |
|  | August 31, 2011 |
--- | --- | --- | ---
|  | Weighted Average Amortization Period (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |
Patents and trademarks |  |  | 17 |  | $ | 500 |  | $ | 114 |  | $ | 386 |
Acquired technology |  |  | 4 |  |  | 172 |  |  | 61 |  |  | 111 |
Customer relationships |  |  | 5 |  |  | 1,379 |  |  | 23 |  |  | 1,356 |
Total |  |  |  |  | $ | 2,051 |  | $ | 198 |  | $ | 1,853 |
Amortization expense recognized for the years ended August 31, 2012, 2011 and 2010 was $354 thousand, $88 thousand and $37 thousand, respectively. The estimated future amortization expense for the Company's intangible assets as of August 31, 2012 is as follows (in thousands):
Years Ending August 31, |  | Total |
--- | --- | --- | ---
2013 |  | $ | 347 |
2014 |  |  | 329 |
2015 |  |  | 298 |
2016 |  |  | 276 |
2017 |  |  | 31 |
Thereafter |  |  | 271 |
Total |  | $ | 1,552 |
Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of August 31, 2012 and 2011 consist of the following (in thousands):
|  | August 31, 2012 |  | August 31, 2011 |
--- | --- | --- | --- | --- | ---
Accrued compensation and benefits |  | $ | 2,179 |  | $ | 2,238 |
Accrued business expenses |  |  | 592 |  |  | 879 |
Deferred rent |  |  | 545 |  |  | 563 |
Accrued professional service fees |  |  | 325 |  |  | 2,098 |
Taxes payable |  |  | 286 |  |  | 351 |
Customer deposits |  |  | 146 |  |  | 318 |
Government grants |  |  | 77 |  |  | 53 |
Other (individually less than 5% of total accrued expenses and other current liabilities) |  |  | 819 |  |  | 861 |
Total |  | $ | 4,969 |  | $ | 7,361 |

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