2. Balance Sheet Components

Financing receivables

A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset in the Company’s balance sheet. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year and capital leases, totaled $5.5 million and $7.6 million at March 31, 2017 and June 30, 2016, respectively, and are included in Other Assets in the condensed consolidated balance sheets. Of the $5.5 million in financing receivables at March 31, 2017, $3.0 million is related to sales-type leases with customers while the remaining $2.5 million is related to contractual maturities of more than one year. Of the $7.6 million in financing receivables at June 30, 2016, $3.5 million is related to sales-type leases with customers while the remaining $4.1 million is related to contractual maturities of more than one year. Due to the homogenous nature of the leasing transactions, the Company manages them on an aggregate basis when assessing and monitoring credit risk. The Company evaluates the credit quality of an obligor at lease inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new customers and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of non-payments. As of March 31, 2017, the sales-type lease portion of the financing receivables was rated at a moderate risk. The Company performed an assessment of the allowance for credit losses related to its financing receivables as of March 31, 2017 and June 30, 2016. Based upon such assessment, the Company did not record an allowance for credit losses related to such financing receivables as of March 31, 2017 and June 30, 2016, respectively.

A summary of the Company’s financing receivables is presented as follows (in thousands):

				Financed
	Lease			Service Contracts
March 31, 2017	Receivables			and Other		Total
Gross	$	4,185		$	4,288	$	8,473
Residual value	—			—		—
Unearned income	(465		)	—		(465		)
Allowance for credit loss	—			—		—

Total, net	$	3,720		$	4,288	$	8,008

Reported as:
Current	$	753		$	1,793	$	2,546
Non-current	2,967			2,495		5,462

Total, net	$	3,720		$	4,288	$	8,008

				Financed
	Lease			Service Contracts
June 30, 2016	Receivables			and Other		Total
Gross	$	4,998		$	5,840	$	10,838
Residual value	—			—		—
Unearned income	(623		)	—		(623		)
Allowance for credit loss	—			—		—

Total, net	$	4,375		$	5,840	$	10,215

Reported as:
Current	$	840		$	1,778	$	2,618
Non-current	3,535			4,062		7,597

Total, net	$	4,375		$	5,840	$	10,215

Actual cash collections may differ from the contracted maturities due to early customer buyouts, refinancing, or defaults. Future minimum lease payments to be received as of March 31, 2017 are presented as follows (in thousands):

Year Ending June 30,	Amount
2017 (remaining 3 months)	$	155
2018	930
2019	930
2020	930
2021	930
2022	310

Total	$	4,185

Inventories

Inventories consisted of the following (in thousands):

	March 31,		June 30,
	2017		2016
Raw materials	$	45,815	$	50,480
Work-in-process	17,477		20,190
Finished goods	53,281		45,317

Inventories	$	116,573	$	115,987

Property and equipment, net

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

	March 31,			June 30,
	2017			2016
Furniture and fixtures	$	4,511		$	4,527
Computer and office equipment	11,852			11,485
Software	11,362			11,104
Leasehold improvements	23,030			21,632
Machinery and equipment	50,120			47,171
Construction in progress	2,071			4,412

	102,946			100,331
Less: Accumulated depreciation	(79,593		)	(72,453		)

Property and equipment, net	$	23,353		$	27,878

Depreciation expense related to property and equipment for the three and nine months ended March 31, 2017 was $2.6 million and $7.9 million, respectively. Depreciation expense related to property and equipment for the three and nine months ended March 31, 2016 was $2.6 million and $7.7 million, respectively.