Balance Sheet Components

12 Months Ended

Jan. 26, 2014

Notes to financial statements [Abstract]

Balance Sheet Components

Balance Sheet Components

Certain balance sheet components are as follows:

	January 26, 2014		January 27, 2013
Inventories:	(In thousands)
Raw materials	$	126,896	$	157,989
Work in-process	94,844		67,352
Finished goods	166,025		187,126
Total inventories	$	387,765	$	412,467

	January 26, 2014			January 27, 2013			Estimated Useful Life
	(In thousands)						(In years)
Property and Equipment:
Land	$	218,496		$	218,496		(A)
Building	19,268			30,869			5-25
Test equipment	412,862			349,530			3-5
Software and licenses	120,435			245,734			3-5
Leasehold improvements	178,884			159,413			(B)
Computer equipment	204,344			174,712			3
Office furniture and equipment	58,874			58,712			5
Capital leases	28,481			27,231			(B)
Construction in process	41,176			24,085			(C)
Total property and equipment, gross	1,282,820			1,288,782
Accumulated depreciation and amortization	(700,080		)	(712,638		)
Total property and equipment, net	$	582,740		$	576,144

(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 expected lease term.

(C) Construction in process represents assets that are not in service as of the balance sheet date.

Depreciation expense for fiscal years 2014, 2013 and 2012 was $164.0 million, $157.6 million and $145.2 million, respectively.

	January 26, 2014		January 27, 2013
Accrued Liabilities:	(In thousands)
Deferred revenue	$	273,108	$	273,605
Accrued customer programs (1)	157,840		163,406
Customer advances	9,297		9,090
Warranty accrual (2)	7,571		14,874
Accrued payroll and related expenses	109,721		98,977
Accrued legal settlement (3)	30,600		30,600
Taxes payable, short- term	2,378		3,173
Other	30,590		26,070
Total accrued liabilities and other	$	621,105	$	619,795

(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 10 of these Notes to the Consolidated Financial Statements for discussion regarding the warranty accrual.

(3)  Please refer to Note 12 of these Notes to the Consolidated Financial Statements for discussion regarding the 3dfx litigation.

	January 26, 2014		January 27, 2013
Other Long Term Liabilities:	(In thousands)
Deferred income tax liability	$	157,953	$	192,950
Income tax payable	119,977		115,267
Asset retirement obligations	11,056		10,165
Deferred revenue	172,199		236,152
Other	13,940		34,787
Total other long-term liabilities	$	475,125	$	589,321