Balance Sheet Components (in thousands)

Short-Term Investments



	As of
	June 30, 2013									December 31, 2012
	Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value		Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
U.S. Treasuries	$	141,001	$	12	$	(7	)	$	141,006	$	225,016	$	48	$	(2	)	$	225,062
Certificates of Deposits	163		—		—			163		2,783		—		—			2,783
Total	$	141,164	$	12	$	(7	)	$	141,169	$	227,799	$	48	$	(2	)	$	227,845

All of the Company’s marketable securities are classified as available-for-sale and consist of government securities with an original maturity or remaining maturity at the time of purchase of greater than three months and no more than 12 months. Accordingly, none of the short-term investments have unrealized losses greater than 12 months.

Cost Method Investments

As of June 30, 2013 and December 31, 2012, the carrying value of the Company's cost method investments was $1.3 million. These investments are included in other non-current assets in the consolidated balance sheets and are carried at cost, adjusted for any impairment, because the Company does not have a controlling interest and does not have the ability to exercise significant influence over these companies. The Company monitors these investments for impairment on a quarterly basis, and adjusts carrying value for any impairment charges recognized. There were no impairments recognized in the three and six months ended June 30, 2013 and July 1, 2012. Realized gains and losses on these investments are reported in other income (expense), net in the consolidated statements of operations.

Accounts receivable, net



	As of
	June 30, 2013			December 31, 2012
Gross accounts receivable	$	307,591		$	276,084
Allowance for doubtful accounts	(1,256		)	(1,256		)
Allowance for sales returns	(16,122		)	(17,031		)
Allowance for price protection	(1,730		)	(1,783		)
Total allowances	(19,108		)	(20,070		)
Total accounts receivable, net	$	288,483		$	256,014

Inventories



	As of
	June 30, 2013			December 31, 2012
Raw materials	$	6,072		$	4,447
Work in process	5,098		5,098,000	—
Finished goods	174,213			170,456
Total inventories	$	185,383		$	174,903

The Company records provisions for excess and obsolete inventory based on forecasts of future demand. While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts are greater than actual demand.

Property and equipment, net



	As of
	June 30, 2013			December 31, 2012
Computer equipment	$	7,699		$	7,290
Furniture, fixtures and leasehold improvements	13,125			12,761
Software	23,790			21,521
Machinery and equipment	43,366			31,694
Construction in progress	794			385
Total property and equipment, gross	88,774			73,651
Accumulated depreciation and amortization	(62,377		)	(54,626		)
Total property and equipment, net	$	26,397		$	19,025

Depreciation expense was $4.4 million and $7.8 million for the three and six months ended June 30, 2013, respectively, and $2.9 million and $5.5 million for the three and six months ended July 1, 2012, respectively.

Intangibles, net

The following tables present details of the Company’s purchased intangible assets:



	Gross		Accumulated Amortization			Net
June 30, 2013
Technology	$	55,599	$	(24,899	)	$	30,700
Customer contracts and relationships	56,500		(5,325		)	51,175
Other	10,545		(4,771		)	5,774
Finite-lived intangibles, net	122,644		(34,995		)	87,649
Indefinite-lived intangible assets	7,500		—			7,500
Total purchased intangible assets, net	$	130,144	$	(34,995	)	$	95,149



	Gross		Accumulated Amortization			Net
December 31, 2012
Technology	$	32,259	$	(22,065	)	$	10,194
Customer contracts and relationships	16,000		(3,301		)	12,699
Other	6,870		(3,142		)	3,728
Finite-lived intangibles, net	55,129		(28,508		)	26,621
Indefinite-lived intangible assets	1,000		—			1,000
Total purchased intangible assets, net	$	56,129	$	(28,508	)	$	27,621

The Company purchased finite-lived intangible assets of $64.2 million and indefinite-lived assets of $9.5 million, as a result of its acquisition of AirCard and Arada during the second quarter of 2013. For further discussion regarding the AirCard and Arada acquisitions, see Note 3, Business Acquisitions. In addition, the Company purchased $0.3 million in patents during the second quarter of 2013.

As of June 30, 2013, the Company had $7.5 million in unamortized intangible assets related to IPR&D. All of the IPR&D assets were acquired in connection with the Company's acquisition of AirCard. IPR&D assets represent IPR&D projects that have not reached technical feasibility and are required to be classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. Accordingly, during the development period after the date of acquisition, these assets will not be amortized. When the asset reaches technical feasibility, the Company will determine the useful life of the asset, reclassify the asset out of IPR&D, and begin amortization. Development costs incurred after acquisition on acquired IPR&D projects are expensed as incurred. Estimated future cost to complete these IPR&D projects is $7.4 million. As of June 30, 2013, $2.0 million of the IPR&D had reached technical feasibility and as a result, was reclassified from IPR&D to technology.

Amortization of purchased intangible assets was $5.0 million and $6.5 million for the three and six months ended June 30, 2013, respectively, and $1.0 million and $2.0 million for the three and six months ended July 1, 2012, respectively. No impairment charges were recorded in the three and six months ended June 30, 2013, and July 1, 2012.

Estimated amortization expense related to intangibles for each of the next five years and thereafter is as follows:



Year Ending December 31	Amount
2013 (remaining six months)	$	8,111
2014	16,013
2015	14,663
2016	14,033
2017	9,392
Thereafter	25,437
Total expected amortization expense	$	87,649

Goodwill

The changes in the carrying amount of goodwill during the six months ended June 30, 2013 are as follows:



	Retail		Commercial		Service Provider		Total
Goodwill at December 31, 2012	$	45,441	$	35,084	$	20,355	$	100,880
Goodwill acquired during the period	—		1,195		53,330		54,525
Goodwill at June 30, 2013	$	45,441	$	36,279	$	73,685	$	155,405

During the six months ended June 30, 2013, the Company recorded goodwill of $54.5 million, related to its acquisitions of AirCard and Arada. For further discussion, see Note 3, Business Acquisitions. There were no impairments to goodwill during the three and six months ended June 30, 2013 and July 1, 2012.

Other non-current assets



	As of
	June 30, 2013		December 31, 2012
Non-current deferred income taxes	$	16,498	$	16,856
Cost method investment	1,322		1,322
Other	5,064		4,656
Total other non-current assets	$	22,884	$	22,834

Other accrued liabilities



	As of
	June 30, 2013		December 31, 2012
Sales and marketing programs	$	43,913	$	43,652
Warranty obligation	46,175		46,659
Freight	6,491		4,457
Other	38,305		31,487
Total other accrued liabilities	$	134,884	$	126,255