Balance Sheet Components

Certain balance sheet components are as follows:



	January 29, 2012		January 30, 2011
Inventories:	(In thousands)
Raw materials	$	84,927	$	67,880
Work in-process	62,934		72,698
Finished goods	192,436		204,947
Total inventories	$	340,297	$	345,525



	January 29, 2012			January 30, 2011			Estimated Useful Life
	(In thousands)						(Years)
Property and Equipment:
Land	$	218,496		$	217,372		(A)
Building	30,869			29,326			3-25
Test equipment	299,506			293,807			3-5
Software and licenses	211,339			306,699			3-5
Leasehold improvements	143,986			146,508			(B)
Computer equipment	168,455			132,896			3
Office furniture and equipment	45,521			36,239			5
Capital leases	27,264			26,618			(B)
Construction in process	11,092			4,474			(C)
Total property and equipment, gross	1,156,528			1,193,939
Accumulated depreciation and amortization	(596,456		)	(625,082		)
Total property and equipment, net	$	560,072		$	568,857

(A) Land is a non-depreciable asset.

(B) Leasehold improvements and capital leases are amortized based on the lesser of either the asset’s estimated useful life or the remaining lease term.

Depreciation expense for fiscal years 2012, 2011 and 2010 was $145.2 million, $157 million and $164.8 million, respectively.



	January 29, 2012		January 30, 2011
Prepaid Expenses and Other	(In thousands)
Prepaid maintenance	$	12,965	$	12,165
Prepaid insurance	3,502		3,512
Prepaid taxes	10,069		1,364
Prepaid rent	3,410		3,599
Other	19,465		11,996
Total prepaid expenses and other	$	49,411	$	32,636



	January 29, 2012		January 30, 2011
Other Assets	(In thousands)
Prepaid taxes, long term (1)	$	68,805	$	—
Prepaid maintenance, long term	15,175		21,239
Lease deposits	8,027		7,003
Investment in non-affiliates	10,382		8,792
Deferred Income Taxes, long term	7,459		851
Other	10,484		2,965
Total other assets	$	120,332	$	40,850

(1) Represents long-term prepaid taxes related to inter-company transactions that are deferred for accounting purposes and amortized over eight years.



	January 29, 2012		January 30, 2011
Accrued Liabilities:	(In thousands)
Deferred revenue	$	270,649	$	245,596
Accrued customer programs (1)	143,972		171,163
Warranty accrual (2)	18,406		107,896
Accrued payroll and related expenses	88,879		71,915
Accrued legal settlement (3)	30,600		30,600
Taxes payable, short- term	6,941		4,576
Other	35,439		24,798
Total accrued liabilities and other	$	594,886	$	656,544

(1) Please refer to Note 1 of these Notes to the Consolidated Financial Statements for discussion regarding the nature of accrued customer programs and their accounting treatment related to our revenue recognition policies and estimates.

(2) Please refer to Note 13 of these Notes to the Consolidated Financial Statements for discussion regarding the warranty accrual.

(3) Please refer to Note 14 of these Notes to the Consolidated Financial Statements for discussion regarding the 3dfx litigation.



	January 29, 2012		January 30, 2011
Other Long Term Liabilities:	(In thousands)
Deferred income tax liability	$	133,288	$	46,129
Income tax payable	63,007		57,590
Asset retirement obligations	10,199		9,694
Deferred revenue from Intel cross license agreement (1)	200,370		163,000
Other	48,943		71,300
Total other long-term liabilities	$	455,807	$	347,713

(1) Please refer to Note 4 of these Notes to the Consolidated Financial Statements for discussion regarding our revenue recognition under this agreement.