Note 6. Balance sheet components

Accounts receivable, net

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



	June 30, 2017		December 31, 2016
Accounts receivable	$	56,151	$	78,143
Trade notes receivable		514		2,892
Allowance for doubtful accounts		(140)		(425)
	$	56,525	$	80,610

Inventories, net

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



	June 30, 2017		December 31, 2016
Raw materials	$	36,609	$	23,348
Work in process		14,552		10,996
Finished goods(1)		30,167		13,893
	$	81,328	$	48,237

⁽¹⁾

Finished goods inventory at customer vendor managed inventory locations was $6.6 million and $8.3 million as of June 30, 2017 and December 31, 2016, respectively.

Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following (in thousands):



	June 30, 2017		December 31, 2016
Prepaid taxes and taxes receivable	$	13,015	$	16,102
Deposits and other prepaid expenses		4,279		3,571
Transition service agreement related (Note 5)		14,409		—
Other receivable		5,063		2,723
	$	36,766	$	22,396

Purchased intangible assets

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


	June 30, 2017						December 31, 2016
	Gross		Accumulated		Net		Gross		Accumulated		Net
	Assets		Amortization		Assets		Assets		Amortization		Assets
Technology and patents	$	37,200	$	(34,048)	$	3,152	$	36,918	$	(33,316)	$	3,602
Customer relationships		15,207		(14,380)		827		15,039		(13,990)		1,049
Leasehold interest		1,256		(337)		919		1,226		(315)		911
	$	53,663	$	(48,765)	$	4,898	$	53,183	$	(47,621)	$	5,562

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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Cost of goods sold	$	203	$	848	$	465	$	1,689
Operating expenses		118		460		236		913
Total	$	321	$	1,308	$	701	$	2,602

The estimated future amortization expense of purchased intangible assets as of June 30, 2017, is as follows (in thousands):


2017 (remaining six months)	$	640
2018		1,209
2019		806
2020		688
2021		688
Thereafter		867
	$	4,898

Accrued and other current liabilities

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



	June 30, 2017		December 31, 2016
Employee-related	$	13,371	$	18,654
Income and other taxes payable		857		3,956
Deferred revenue, current		925		956
Accrued warranty		528		678
Rusnano payment derivative		—		389
Asset sale related contingent liabilities (Note 5)		6,851		—
Transition service agreement related payables (Note 5)		12,671		—
Other accrued expenses		5,522		5,992
	$	40,725	$	30,625

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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Beginning balance	$	582	$	1,143	$	678	$	1,175
Warranty accruals		34		(203)		(28)		(101)
Settlements		(88)		(271)		(122)		(405)
Ending balance	$	528	$	669	$	528	$	669

Other noncurrent liabilities

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



	June 30, 2017		December 31, 2016
Pension and other employee-related	$	5,527	$	5,045
Deferred rent		2,433		1,509
Deferred revenue		1,243		136
Government grant		952		1,048
Deferred income tax liabilities		58		46
Rusnano payment derivative		389		—
Asset retirement obligations and other		3,365		1,155
	$	13,967	$	8,939