8. BALANCE SHEET DETAILS

Inventories are valued at the lower of cost or market with cost computed on a first-in, first-out (“FIFO”) basis. Consideration is given to obsolescence, excessive levels, deterioration and other factors in evaluating net realizable value.

Inventories consist of the following (in thousands):

	September 30, 2013		December 31, 2012
Raw materials	$	2,414	$	1,871
Work in process		1,113		799
Finished goods		104,154		97,290
	$	107,681	$	99,960

Prepaid expenses and other current assets consist of the following (in thousands):

	September 30, 2013		December 31, 2012
Non-trade receivables	$	8,379	$	10,463
Prepaid expenses		46,066		35,489
Derivative assets		7,131		4,158
Other current assets		5,285		2,429
	$	66,861	$	52,539

Deferred revenues consist of the following (in thousands):

	September 30, 2013		December 31, 2012
Short-term:
Service	$	170,583	$	156,487
Product		73		595
License		1,400		1,400
	$	172,056	$	158,482
Long-term:
Service	$	83,387	$	85,286
License		4,725		5,775
	$	88,112	$	91,061

Other accrued liabilities consist of the following (in thousands):

	September 30, 2013		December 31, 2012
Accrued expenses	$	21,483	$	19,165
Accrued co-op expenses		4,702		4,571
Restructuring reserves		14,836		5,347
Warranty obligations		9,711		10,475
Derivative liabilities		5,612		3,273
Employee stock purchase plan withholdings		4,768		10,186
Other accrued liabilities		10,480		10,001
	$	71,592	$	63,018