United states securities and exchange commission

Note 8. Intangible Assets, Net

Carrying values and estimated useful lives of intangible assets as of December 31, 2017, consisted of the following:

 

		Estimated Useful Life		Cost				Accumulated Amortization				Net
				(in thousands)
Patents		13 years		$	2,000			$	(2,000	)		$	—
Trademarks		Indefinite			150				—				150
Total intangible assets, net				$	2,150			$	(2,000	)		$	150

 

Carrying values and estimated useful lives of intangible assets as of December 31, 2016, consisted of the following:

 

		Estimated Useful Life		Cost				Accumulated Amortization				Net
				(in thousands)
Patents		13 years		$	2,000			$	(1,885	)		$	115
Trademarks		Indefinite			150				—				150
Total intangible assets, net				$	2,150			$	(1,885	)		$	265

 

During the years ended December 31, 2017, 2016 and 2015, the Company recorded amortization expense of $0.1 million, $0.2 million and $0.8 million, respectively.

 

F-20

TPI COMPOSITES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

 

Note 9. Other Noncurrent Assets

Other noncurrent assets at December 31 consisted of the following:

 

		2017				2016
		(in thousands)
Restricted cash		$	475			$	8,538
Deferred tax assets			8,304				5,131
Land use right			1,708				1,648
Deposits			3,238				2,422
Other			405				2
Total other noncurrent assets		$	14,130			$	17,741

 

As of December 31, 2017 and 2016, the Company maintained long-term deposits in interest bearing accounts related to fully cash-collateralized letter of credit in connection with an equipment lessor in Iowa totaling approximately $0.5 million. As of December 31, 2016, the Company also maintained long-term deposits in interest bearing accounts, related to fully cash-collateralized letters of credit in connection with the facility leases at its Mexico locations, totaling approximately $8.1 million.   

As a result of the refinancing of our previous credit facility, in the first quarter of 2017, approximately $8.1 million of long-term deposits in interest bearing accounts related to fully cash-collateralized letters of credit were returned to the Company and applied against its letter of credit sub-facility under the Restated Credit Facility.

The land use right was purchased during 2007 and permits the Company to use the land where the Taicang Port, China facility, owned by the Company, is situated. The Company is amortizing the land use right on a straight-line basis over its 50 year life. Amortization of the land use right began upon the opening of the plant in 2008.

    

Note 10. Accrued Warranty

Warranty accrual at December 31 consisted of the following:

 

		2017				2016				2015
		(in thousands)
Warranty accrual at beginning of year		$	19,912			$	13,596			$	5,916
Accrual during the year			15,364				18,886				10,653
Cost of warranty services provided during the year (1)			(1,986	)			(10,808	)			(1,349	)
Reduction of reserves			(4,127	)			(1,762	)			(1,624	)
Warranty accrual at end of year		$	29,163			$	19,912			$	13,596

 

(1)	The 2016 amount includes an 8.0 million Euro ($8.5 million) payment related to the Nordex settlement agreement.