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Balance Sheet Components
9 Months Ended
Sep. 28, 2014
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components
Balance Sheet Components (in thousands)

Available-for-sale short-term investments

 
As of
 
September 28, 2014
 
December 31, 2013
 
Cost
 
Unrealized Gain
 
Unrealized Loss
 
Estimated Fair Value
 
 Cost
 
Unrealized Gain
 
Unrealized Loss
 
Estimated Fair Value
U.S. treasuries
$
99,954

 
$
31

 
$

 
$
99,985

 
$
104,595

 
$
7

 
$
(1
)
 
$
104,601

Certificates of deposits
166

 

 

 
166

 
159

 

 

 
159

Total
$
100,120

 
$
31

 
$

 
$
100,151

 
$
104,754

 
$
7

 
$
(1
)
 
$
104,760



The Company’s short-term investments are primarily comprised of marketable securities that 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 available-for-sale securities have unrealized losses greater than 12 months.

Cost method investments

As of September 28, 2014 and December 31, 2013, 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 unaudited condensed 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 nine months ended September 28, 2014 and September 29, 2013. Realized gains and losses on these investments are reported in other income, net in the unaudited condensed consolidated statements of operations.

Accounts receivable, net
 
As of
 
September 28,
2014
 
December 31,
2013
Gross accounts receivable
$
299,216

 
$
289,479

Allowance for doubtful accounts
(1,255
)
 
(1,255
)
Allowance for sales returns
(16,867
)
 
(17,467
)
Allowance for price protection
(2,526
)
 
(4,273
)
Total allowances
(20,648
)
 
(22,995
)
Total accounts receivable, net
$
278,568

 
$
266,484



Inventories 
 
As of
 
September 28,
2014
 
December 31,
2013
Raw materials
$
3,833

 
$
8,676

Work in process


6,233

Finished goods
202,661

 
209,547

Total inventories
$
206,494

 
$
224,456



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
 
September 28,
2014
 
December 31,
2013
Computer equipment
$
9,334

 
$
8,527

Furniture, fixtures and leasehold improvements
17,670

 
14,019

Software
28,318

 
25,722

Machinery and equipment
57,038

 
50,656

Construction in progress
5

 
21

Total property and equipment, gross
112,365

 
98,945

Accumulated depreciation and amortization
(84,736
)
 
(71,751
)
Total property and equipment, net
$
27,629

 
$
27,194



Depreciation and amortization expense pertaining to property and equipment was $4.6 million and $13.1 million for the three and nine months ended September 28, 2014, respectively, and $4.9 million and $12.7 million for the three and nine months ended September 29, 2013, respectively.

Intangibles, net
 
Gross
 
Accumulated Amortization
 
Net
September 28, 2014
 
 
 
 
 
Technology
$
61,099

 
$
(36,901
)
 
$
24,198

Customer contracts and relationships
56,500

 
(14,434
)
 
42,066

Other
10,545

 
(6,104
)
 
4,441

Total intangibles, net
$
128,144

 
$
(57,439
)
 
$
70,705


 
Gross
 
Accumulated Amortization
 
Net
December 31, 2013
 
 
 
 
 
Technology
$
60,999

 
$
(29,593
)
 
$
31,406

Customer contracts and relationships
56,500

 
(9,120
)
 
47,380

Other
10,545

 
(5,313
)
 
5,232

Finite-lived intangibles, net
128,044

 
(44,026
)
 
84,018

Indefinite-lived intangible assets
100

 

 
100

Total intangibles, net
$
128,144

 
$
(44,026
)
 
$
84,118



Amortization of purchased intangible assets was $4.5 million and $13.4 million for the three and nine months ended September 28, 2014, respectively, and $4.5 million and $11.0 million for the three and nine months ended September 29, 2013, respectively.

Estimated amortization expense related to intangibles for each of the next five years and thereafter is as follows:
Year Ending December 31
Amount
2014 (remaining three months)
$
4,475

2015
17,283

2016
16,921

2017
11,386

2018
7,871

Thereafter
12,769

Total expected amortization expense
$
70,705



Goodwill
 
The changes in the carrying amount of goodwill during the nine months ended September 28, 2014 are as follows:
 
Retail
 
Commercial
 
Service Provider
 
Total
Goodwill at December 31, 2013
$
45,441

 
$
36,279

 
$
74,196

 
$
155,916

      Goodwill acquired during the period

 

 

 

Goodwill at September 28, 2014
$
45,441

 
$
36,279

 
$
74,196

 
$
155,916



There were no impairments to goodwill during the three and nine months ended September 28, 2014 and September 29, 2013.

Other non-current assets
 
As of
 
September 28,
2014
 
December 31, 2013
Non-current deferred income taxes
$
21,713

 
$
20,235

Cost method investment
1,322

 
1,322

Other
8,364

 
5,034

Total other non-current assets
$
31,399

 
$
26,591



Other accrued liabilities  
 
As of
 
September 28,
2014
 
December 31,
2013
Sales and marketing programs
$
46,420

 
$
47,941

Warranty obligation
42,752

 
48,754

Freight
6,873

 
5,790

Other
37,614

 
40,733

Total other accrued liabilities
$
133,659

 
$
143,218