Balance Sheet Components

Available-for-sale short-term investments



	As of
	April 1, 2018									December 31, 2017
	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(In thousands)
U.S. treasuries	$	125,184	$	—	$	(184	)	$	125,000	$	124,816	$	—	$	(146	)	$	124,670
Certificates of deposit	161		—		—			161		162		—		—			162
Total	$	125,345	$	—	$	(184	)	$	125,161	$	124,978	$	—	$	(146	)	$	124,832

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 twelve months. Accordingly, none of the available-for-sale securities have unrealized losses greater than twelve months.

Equity investments without readily determinable fair values

As noted above, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities" on January 1, 2018. The Company's equity investments without determinable fair values was $3.1 million as of April 1, 2018 and $4.5 million as of December 31, 2017, and are included in Other non-current assets in the unaudited condensed consolidated balance sheets. The Company does not have a controlling interest or the ability to exercise significant influence over these investees and these investments do not have readily determinable fair values. Equity investments without readily determinable fair values are accounted for at cost, less impairment and adjusted for subsequent observable price changes obtained from orderly transactions for identical or similar investments issued by the same investee. Such changes in the basis of the equity investment are recognized in Other income (expense), net in the unaudited condensed consolidated statements of operations. $1.4 million of impairments was recognized during the three months ended April 1, 2018 and there were no impairments recognized during the three months ended April 2, 2017.

Accounts receivable, net



	As of
	April 1, 2018				December 31, 2017
	(In thousands)
Gross accounts receivable	$	318,358			$	437,891
Allowance for doubtful accounts	(1,256		)		(1,257		)
Allowance for sales returns	—			*	(20,189		)
Allowance for price protection	—			*	(3,647		)
Total allowances	(1,256		)		(25,093		)
Total accounts receivable, net	$	317,102			$	412,798

_________________________

* Upon adoption of ASC 606, allowances for sales returns and price protection were reclassified to current liabilities as these reserve balances are considered refund liabilities. Refer to Note 3. Revenue Recognition, for additional information on the adoption impact.

Inventories



	As of
	April 1, 2018		December 31, 2017
	(In thousands)
Raw materials	$	3,982	$	4,465
Work in process	3		—
Finished goods	262,360		241,429
Total inventories	$	266,345	$	245,894

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions. 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
	April 1, 2018			December 31, 2017
	(In thousands)
Computer equipment	$	10,135		$	10,114
Furniture, fixtures and leasehold improvements	21,452			21,640
Software	29,193			28,997
Machinery and equipment	63,422			62,490
Total property and equipment, gross	124,202			123,241
Accumulated depreciation and amortization	(104,423		)	(102,581		)
Total property and equipment, net	$	19,779		$	20,660

Depreciation and amortization expense pertaining to property and equipment was $3.3 million for the three months ended April 1, 2018 and $3.4 million for the three months ended April 2, 2017.

Intangibles, net



	As of April 1, 2018							As of December 31, 2017
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(In thousands)
Technology	$	66,599	$	(62,724	)	$	3,875	$	66,599	$	(62,172	)	$	4,427
Customer contracts and relationships	56,500		(39,186		)	17,314		56,500		(37,430		)	19,070
Other	11,045		(9,785		)	1,260		11,045		(9,554		)	1,491
Total intangibles, net	$	134,144	$	(111,695	)	$	22,449	$	134,144	$	(109,156	)	$	24,988

Amortization of intangibles was $2.5 million for the three months ended April 1, 2018 and $4.5 million for the three months ended April 2, 2017.

As of April 1, 2018, estimated amortization expense related to finite-lived intangibles for the remaining years is as follows (in thousands):



2018 (remaining nine months)	$	6,857
2019	7,544
2020	6,622
2021	1,413
2022	13
Total estimated amortization expense	$	22,449

Other non-current assets



	As of
	April 1, 2018		December 31, 2017
	(In thousands)
Non-current deferred income taxes	$	74,754	$	49,468
Other	11,199		12,321
Total other non-current assets	$	85,953	$	61,789

Other accrued liabilities



	As of
	April 1, 2018			December 31, 2017
	(In thousands)
Sales and marketing	$	95,299		$	96,153
Warranty obligation	18,978		*	75,824
Sales returns	73,562		*	—
Freight	7,790			10,567
Other	43,632			39,926
Total other accrued liabilities	$	239,261		$	222,470

_________________________

* Upon adoption of ASC 606 on January 1, 2018, certain warranty reserve balances totaling $57.9 million were reclassified to sales returns as these liabilities are payable to the Company's customers and settled in cash or by credit on account. Under ASC 606, these amounts are to be accounted for as sales with right of return.