Note 10 - Accrued Liabilities and Other

As of December 31, 2016 and 2015, our accrued liabilities and other current liabilities consisted of the following (in thousands):

Taxes payable includes Value Added Tax, sales tax, property tax, use tax and income tax payables.  

Accrued purchases reflect primarily liabilities related to the construction of Gigafactory 1, along with engineering design and testing accruals. As these services are invoiced, this balance will reduce and accounts payable will increase.