Note 6. Balance sheet components

Accounts receivable, net

Accounts receivable, net consists of the following (in thousands):



	September 30, 2016		December 31, 2015
Accounts receivable	$	93,967	$	82,235
Trade notes receivable		2,102		1,769
Allowance for doubtful accounts		(392)		(843)
	$	95,677	$	83,161

Inventories, net

Inventories, net consist of the following (in thousands):



	September 30, 2016		December 31, 2015
Raw materials	$	22,189	$	23,793
Work in process		17,918		12,165
Finished goods(1)		20,112		29,644
	$	60,219	$	65,602

⁽¹⁾

Finished goods inventory at customer vendor managed inventory locations was $7.7 million and $14.2 million as of September 30, 2016 and December 31, 2015, respectively.

Purchased intangible assets

Purchased intangible assets consist of the following (in thousands):


	September 30, 2016						December 31, 2015
	Gross		Accumulated		Net		Gross		Accumulated		Net
	Assets		Amortization		Assets		Assets		Amortization		Assets
Technology and patents	$	37,387	$	(33,463)	$	3,924	$	37,430	$	(31,061)	$	6,369
Customer relationships		15,391		(14,054)		1,337		15,101		(12,623)		2,478
Leasehold interest		1,277		(321)		956		1,312		(307)		1,005
	$	54,055	$	(47,838)	$	6,217	$	53,843	$	(43,991)	$	9,852

Amortization expense relating to technology and patents and the leasehold interest intangible assets is included within cost of goods sold and customer relationships within operating expenses. The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the condensed consolidated statements of operations (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Cost of goods sold	$	853	$	836	$	2,542	$	2,512
Operating expenses		462		447		1,375		1,344
Total	$	1,315	$	1,283	$	3,917	$	3,856

The estimated future amortization expense of purchased intangible assets as of September 30, 2016, is as follows (in thousands):


2016 (remaining three months)	$	566
2017		1,432
2018		1,226
2019		811
2020		688
Thereafter		1,494
	$	6,217

Accrued and other current liabilities

Accrued and other current liabilities consist of the following (in thousands):



	September 30, 2016		December 31, 2015
Employee-related	$	18,290	$	17,420
Income and other taxes payable		4,188		3,720
Accrued warranty		685		1,175
Penalty payment derivative		389		389
Other accrued expenses		4,632		5,246
	$	28,184	$	27,950

Warranty Accrual

The table below summarizes the movement in the warranty accrual, which is included in accrued and other current liabilities (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Beginning balance	$	669	$	1,254	$	1,175	$	1,751
Warranty accruals		126		90		25		(85)
Settlements		(110)		(184)		(515)		(506)
Ending balance	$	685	$	1,160	$	685	$	1,160

Other noncurrent liabilities

Other noncurrent liabilities consist of the following (in thousands):


	September 30, 2016		December 31, 2015
Pension and other employee-related	$	6,071	$	5,036
Deferred income tax liabilities		40		88
Other		2,933		2,352
	$	9,044	$	7,476