Financial Statements Details (Tables)

6 Months Ended

Jun. 30, 2019

Balance Sheet Components [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash

The following table is a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows (in thousands):

	June 30, 2019		June 30, 2018
Cash and cash equivalents	$	944,414	$	711,157
Restricted cash included in other assets	4,222		5,512
Total cash, cash equivalents and restricted cash	$	948,636	$	716,669

Schedule of Accounts Receivable, Net

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

	June 30, 2019			December 31, 2018
Accounts receivable	$	350,568		$	340,897
Allowance for doubtful accounts	(837		)	(507		)
Product sales rebate and returns reserve	(6,651		)	(8,613		)
Accounts receivable, net	$	343,080		$	331,777

Schedule of Inventories

Inventories consist of the following (in thousands):

	June 30, 2019		December 31, 2018
Raw materials	$	105,639	$	76,795
Finished goods	208,538		187,762
Total inventories	$	314,177	$	264,557

Schedule of Prepaid Expenses and Other Current Assets

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

	June 30, 2019		December 31, 2018
Prepaid income taxes	$	43,464	$	38,636
Inventory deposit	14,250		14,639
Other current assets	43,665		95,730
Other prepaid expenses and deposits	12,079		13,316
Total prepaid expenses and other current assets	$	113,458	$	162,321

Schedule of Property and Equipment, Net

Property and equipment, net consists of the following (in thousands):

	June 30, 2019			December 31, 2018
Equipment and machinery	$	59,720		$	55,912
Computer hardware and software	33,229			30,566
Leasehold improvements	31,402			36,447
Furniture and fixtures	3,736			3,697
Building	—			35,154
Construction-in-process	959			3,591
Property and equipment, gross	129,046			165,367
Less: accumulated depreciation	(88,023		)	(90,012		)
Property and equipment, net	$	41,023		$	75,355

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30, 2019		December 31, 2018
Accrued payroll related costs	$	55,957	$	70,755
Accrued manufacturing costs	30,318		31,336
Accrued product development costs	12,189		6,988
Accrued professional fees	6,312		5,678
Accrued warranty costs	5,074		5,362
Other	4,048		3,135
Total accrued liabilities	$	113,898	$	123,254

Schedule of Warranty Accrual

The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands):

	Six Months Ended June 30,
	2019			2018
Warranty accrual, beginning of period	$	5,362		$	7,415
Liabilities accrued for warranties issued during the period	2,082			3,813
Warranty costs incurred during the period	(2,370		)	(3,046		)
Warranty accrual, end of period	$	5,074		$	8,182

Schedule of Contract Balances

The following table summarizes the activity related to our contract assets (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Contract assets, beginning balance	$	5,699	$	—	$	6,341	$	—
Contract assets, ending balance	1,668		6,959		1,668		6,959

The following table summarizes the activity related to our contract liabilities (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Contract liabilities, beginning balance	$	37,314		$	18,838		$	32,595		$	16,521
Less: Revenue recognized from beginning balance	(3,552		)	(1,933		)	(6,766		)	(4,070		)
Less: Beginning balance reclassified to deferred revenue	(1,593		)	(906		)	(1,205		)	(731		)
Add: Contract liabilities recognized	9,857			5,843			17,402			10,122
Contract liabilities, ending balance	$	42,026		$	21,842		$	42,026		$	21,842

Schedule of Deferred Revenue

Deferred revenue is comprised mainly of unearned revenue related to multi-year PCS contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Deferred revenue, beginning balance (1)	$	536,471		$	456,054		$	587,227		$	498,740
Less: Revenue recognized from beginning balance	(119,542		)	(112,998		)	(253,616		)	(238,557		)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	85,289			105,588			168,607			188,461
Deferred revenue, ending balance	$	502,218		$	448,644		$	502,218		$	448,644
______________________
(1) The beginning balance of the six months ended June 30, 2018 excludes $16.5 million that was reclassified to other current liabilities and other long-term liabilities at January 1, 2018 as a result of our adoption of ASC 606.

Schedule of Other Income (Expense), Net

Other income (expense), net consists of the following (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019			2018
Interest income	$	13,107	$	7,964		$	25,005		$	13,348
Interest expense	—		(680		)	—			(1,367		)
Gain (loss) on investment in privately-held companies	—		(9,100		)	1,150			(9,100		)
Other income (expense), net	704		(353		)	(11		)	(894		)
Total	$	13,811	$	(2,169	)	$	26,144		$	1,987