Note 8. Balance sheet components

Accounts receivable, net

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

	March 31, 2013			December 31, 2012
Accounts receivable	$	58,878		$	66,338
Trade notes receivable		5,375			4,979
Allowance for doubtful accounts		(986	)		(963	)
	$	63,267		$	70,354

Inventories

Inventories consist of the following (in thousands):

	March 31, 2013		December 31, 2012
Raw materials	$	26,332	$	20,520
Work in process		20,560		8,603
Finished goods (1)		14,967		14,670
	$	61,859	$	43,793

(1)	Finished goods inventory at offsite managed inventory locations was $4.8 million and $4.5 million as of March 31, 2013 and December 31, 2012, respectively.

Purchased intangible assets

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

	March 31, 2013							December 31, 2012
	Gross Assets		Accumulated Amortization			Net Assets		Gross Assets		Accumulated Amortization			Net Assets
Technology and patents	$	34,295	$	(23,405	)	$	10,890	$	32,176	$	(22,869	)	$	9,307
Customer relationships		15,128		(8,392	)		6,736		11,898		(8,148	)		3,750
Leasehold interest		1,358		(234	)		1,124		1,355		(241	)		1,114
Noncompete agreements		950		(934	)		16		950		(908	)		42
	$	51,731	$	(32,965	)	$	18,766	$	46,379	$	(32,166	)	$	14,213

Amortization expense relating to technology and patents and the leasehold interest intangible assets is included within cost of goods sold, and customer relationships and the noncompete agreements 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 March 31,
	2013		2012
Cost of goods sold	$	428	$	598
Operating expenses		321		354
Total	$	749	$	952

The estimated future amortization expense of purchased intangible assets as of March 31, 2013, is as follows (in thousands):

2013 (remaining 9 months)	$	3,617
2014		4,505
2015		4,490
2016		3,743
2017		814
Thereafter		1,597
	$	18,766

Accrued and other current liabilities

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

	March 31, 2013		December 31, 2012
Employee-related	$	9,731	$	12,293
Other		15,143		7,666
	$	24,874	$	19,959

Warranty Accrual

The Company provides warranties to cover defects in workmanship, materials and manufacturing for a period of one to two years to meet the stated functionality as agreed to in each sales arrangement. Products are tested against specified functionality requirements prior to delivery, but the Company nevertheless from time to time experiences claims under its warranty guarantees. The Company accrues for estimated warranty costs under those guarantees based upon historical experience, and for specific items, at the time their existence is known and the amounts are determinable.

The table below summarizes the movement in the warranty accrual (in thousands):

	Three months ended March 31,
	2013		2012
Beginning balance	$	1,072	$	1,443
Warranty accruals		26		19
Settlements and adjustments		86		(247	)
Ending balance	$	1,184	$	1,215

Restructuring charges

During the three months ended March 31, 2013, the Company exited and closed one facility at its headquarters location to align its facilities usage with its current size. As a result, the Company recorded a restructuring charge related to the facility impairment of approximately $0.3 million. As of March 31, 2013, the remaining balance of this restructuring obligation was $0.3 million, which the Company expects to pay through 2015.

Other noncurrent liabilities

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

	March 31, 2013		December 31, 2012
Employee-related	$	6,712	$	188
Penalty payment derivative (Note 11)		138		138
Other		1,297		1,536
	$	8,147	$	1,862