CONSOLIDATED BALANCE SHEET COMPONENTS (Tables)

6 Months Ended

Jun. 30, 2019

Balance Sheet Related Disclosures [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:



	June 30,		December 31,
	2019		2018
	(in thousands)
Deferred sales commissions, current portion	$	3,323	$	3,171
Prepaid expenses	2,669		2,478
Other	771		750
Total prepaid expenses and other current assets	$	6,763	$	6,399

Schedule of Property and Equipment

Property and equipment, net consists of the following:



		June 30,			December 31,
	Estimated Useful Lives	2019			2018
		(in thousands)
Computer and other equipment	3 years	$	1,157		$	1,668
Manufacturing, research and development laboratory equipment	3 years	4,545			5,693
Software	2 to 5 years	9,452			9,462
Office furniture and equipment	3 to 7 years	1,968			2,052
Leasehold improvements	shorter of useful life or lease term	952			1,049
Property and equipment, gross		18,074			19,924
Less: Accumulated depreciation and amortization		(13,522		)	(13,977		)
Property and equipment, net		$	4,552		$	5,947

Schedule of Other Assets

Other assets consist of the following:



	June 30,		December 31,
	2019		2018
	(in thousands)
Deferred sales commissions, non-current portion	$	3,153	$	3,085
Investment in privately held company	750		750
Other	373		420
Total other assets	$	4,276	$	4,255

Schedule of Deferred Commission Expense

Significant changes in the balance of total deferred commission (contract asset) during the three and six months ended June 30, 2019 and 2018 are as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(in thousands)						(in thousands)
Beginning balance	$	6,393		$	6,085		$	6,256		$	6,019
Recognized	(1,367		)	(3,749		)	(2,886		)	(6,767		)
Additions	1,450			4,139			3,106			7,223
Total deferred sales commission	$	6,476		$	6,475		$	6,476		$	6,475
Current portion	$	3,323		$	3,279		$	3,323		$	3,279
Non-current portion	$	3,153		$	3,196		$	3,153		$	3,196

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:



	June 30,		December 31,
	2019		2018
	(in thousands)
Accrued compensation	$	6,199	$	7,492
Accrued expenses and other liabilities	1,280		1,169
Warranty liability, current portion	228		276
Total accrued liabilities	$	7,707	$	8,937

Summary of Deferred Revenue

Significant changes in the balance of total deferred revenue (contract liability) during the three and six months ended June 30, 2019 and 2018 are as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(in thousands)						(in thousands)
Beginning balance	$	79,008		$	67,878		$	77,261		$	67,040
Recognized	(13,291		)	(11,207		)	(25,822		)	(21,908		)
Additions	16,692			14,636			30,970			26,175
Total deferred revenue	$	82,409		$	71,307		$	82,409		$	71,307
Current portion	$	41,532		$	35,393		$	41,532		$	35,393
Non-current portion	$	40,877		$	35,914		$	40,877		$	35,914

Schedule of Product Warranty Liability

The following table summarizes the activity related to the Company’s accrued liability for estimated future warranty:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(in thousands)
Beginning balance	$	588		$	546		$	615		$	577
Charges to operations	180			148			397			274
Obligations fulfilled	(201		)	(154		)	(431		)	(307		)
Changes in existing warranty	(3		)	—			(17		)	(4		)
Total product warranties	$	564		$	540		$	564		$	540
Current portion	$	228		$	214		$	228		$	214
Non-current portion	$	336		$	326		$	336		$	326

AEROHIVE NETWORKS, INC 10-Q