Balance Sheet Components

3 Months Ended

Mar. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

5. Balance Sheet Components

Inventories

	As of March 31, 2018		As of December 31, 2017
	(in thousands)
Work-in-process	$	57,141	$	54,835
Finished goods		45,030		38,839
	$	102,171	$	93,674

Property and equipment, net

	As of March 31, 2018			As of December 31, 2017
	(in thousands)
Test equipment and mask costs	$	184,344		$	174,710
Software, design tools, computer and other equipment		109,114			114,322
Furniture, office equipment and leasehold improvements		50,703			50,754
Construction in progress		20,029			20,368
		364,190			360,154
Less: accumulated depreciation and amortization		(170,448	)		(167,639	)
	$	193,742		$	192,515

Depreciation and amortization expense was $21.0 million and $20.8 million for the three months ended March 31, 2018 and 2017, respectively.

The Company leases certain design tools under financing arrangements which are included in property and equipment, which total cost, net of accumulated amortization amounted to $50.6 million and $43.7 million as of March 31, 2018 and December 31, 2017, respectively. Amortization expense related to assets recorded under capital lease and certain financing arrangements was $6.3 million and $4.3 million for the three months ended March 31, 2018 and 2017, respectively.

Assets written-down

The Company decided to rationalize certain product lines in March 2017. As a result, the Company wrote-down certain assets during the three months ended March 31, 2017 totaling $21.5 million which was recorded in the condensed consolidated statements of operations within cost of revenue of $20.5 million, research and development expense of $0.4 million and sales, general and administrative expense of $0.6 million. The assets written-down included inventories of $16.4 million, property and equipment of $4.5 million, and intangibles and other assets of $0.6 million.

Accrued expenses and other current liabilities

	As of March 31, 2018		As of December 31, 2017
	(in thousands)
Accrued compensation and related benefits	$	23,086	$	18,576
Other		19,562		20,177
	$	42,648	$	38,753

Other non-current liabilities

	As of March 31, 2018		As of December 31, 2017
	(in thousands)
Accrued rent	$	21,393	$	12,813
Other		9,748		13,135
	$	31,141	$	25,948

CAVIUM, INC. 10-Q