Restricted Net Assets

6 Months Ended

Jun. 30, 2019

The Company’s consolidated subsidiaries operating in China and Japan are restricted from transferring funds or assets to its parent company in the form of cash dividends, loans or advances. As of June 30, 2019 and December 31, 2018, the Company's consolidated subsidiaries had $21.6 million and $20.9 million, respectively, of restricted net assets, which consisted of (in thousands):



	June 30, 2019		December 31, 2018
Cash restricted in China as a result of ongoing litigation and unfulfilled government grants	$	11,497	$	11,018
China earnings restricted to fund statutory common reserves in China as well as allocate a discretional portion of the Chinese subsidiaries' after-tax profits to their staff welfare and bonus fund	9,140		9,005
Loan agreements in Japan requiring local subsidiaries to maintain minimum net asset levels	926		909
Total restricted net assets in the Company's consolidated subsidiaries	$	21,563	$	20,932