Note 3. Supplemental Financial Information

Consolidated Balance Sheet

Cash and Cash Equivalents

The following is a summary of cash and cash equivalents (in thousands):

	June 30, 2018		June 30, 2017
Cash	$	83,083	$	70,515
Money market funds		—		1,569
Total cash and cash equivalents	$	83,083	$	72,084

Accounts receivable, net

Accounts receivable, net consisted of the following (in thousands):

	June 30, 2018			June 30, 2017
Accounts receivable	$	63,591		$	70,394
Unbilled fees and services		2,654			2,815
		66,245			73,209
Less: Allowance for doubtful accounts		(251	)		(420	)
Accounts receivable, net	$	65,994		$	72,789

The Company received payment or had credits of $0.2 million, added $0.1 million and wrote off $0.1 million from the allowance for doubtful accounts in fiscal 2018. The Company received payment or had credits of $0.1 million, added $0.2 million and wrote off $0.5 million from the allowance for doubtful accounts in fiscal 2017.

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 sales‑type leases, totaled $6.9 million and $7.4 million at June 30, 2018 and 2017, respectively, and are included in Other Assets in the consolidated balance sheets. Of the $6.9 million in financing receivables at June 30, 2018, $1.0 million related to sales‑type leases with customers while the remaining $5.9 million related to contractual maturities of more than one year. Of the $7.4 million in financing receivables at June 30, 2017, $2.8 million related to sales‑type leases with customers while the remaining $4.6 million related to contractual maturities of more than one year. 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‑payment. As of June 30, 2018, 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 June 30, 2018. Based upon such assessment, the Company did not record any adjustment and recorded less than $0.1 million to the allowance for credit losses related to such financing receivables as of June 30, 2018 and as of June 30, 2017, respectively.

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

June 30, 2018	Lease Receivables			Financed Service Contracts and Other		Total
Gross	$	1,588		$	8,009	$	9,597
Residual value		—			—		—
Unearned income		(137	)		—		(137	)
Allowance for credit loss		—			—		—
Total, net	$	1,451		$	8,009	$	9,460
Reported as:
Current	$	432		$	2,139	$	2,571
Non-current		1,019			5,870		6,889
Total, net	$	1,451		$	8,009	$	9,460

June 30, 2017	Lease Receivables			Financed Service Contracts and Other		Total
Gross	$	4,030		$	6,268	$	10,298
Residual value		—			—		—
Unearned income		(433	)		—		(433	)
Allowance for credit loss		(39	)		—		(39	)
Total, net	$	3,558		$	6,268	$	9,826
Reported as:
Current	$	720		$	1,677	$	2,397
Non-current		2,838			4,591		7,429
Total, net	$	3,558		$	6,268	$	9,826

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 June 30, 2018 are presented as follows (in thousands):

Year Ending June 30,	Amount
2019		504
2020		465
2021		465
2022		154
2023		—
Total	$	1,588

Inventories

Inventories consisted of the following (in thousands):

	June 30, 2018		June 30, 2017
Raw materials	$	37,144	$	38,803
Work-in-process		17,703		15,471
Finished goods		53,693		50,780
Inventories	$	108,540	$	105,054

Property and Equipment, net

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

	June 30, 2018			June 30, 2017
Furniture and fixtures	$	2,927		$	4,364
Computer and office equipment		11,315			11,802
Software		11,307			11,457
Leasehold improvements		25,423			23,164
Machinery and equipment		47,065			48,742
Construction in progress		5,629			3,533
		103,666			103,062
Less: Accumulated depreciation		(79,968	)		(80,000	)
Property and equipment, net	$	23,698		$	23,062

Depreciation and amortization expense related to property and equipment for the years ended June 30, 2018, 2017 and 2016 was $9.6 million, $10.3 million and $10.3 million, respectively.

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands):

	Foreign Currency Items		Unrealized Gains and (Losses) on Available-for- Sale Securities			Change in Defined Pension Benefit Obligation			Total
Balance at June 30, 2016	$	1,121	$	(15	)	$	(2,066	)	$	(960	)
Other comprehensive income (loss)		33		(74	)		949			908
Balance at June 30, 2017	$	1,154	$	(89	)	$	(1,117	)	$	(52	)
Other comprehensive income (loss)		83		89			973			1,145
Balance at June 30, 2018	$	1,237	$	—		$	(144	)	$	1,093

Consolidated Statements of Operations

Other expense, net consisted of the following (in thousands):

	Years Ended June 30,
(in thousands)	2018			2017			2016
Interest expense on debt	$	(14,959	)		(17,302	)	$	(17,460	)
Foreign currency transaction loss		(986	)		(1,267	)		(2,014	)
Other (expense) income		(3,279	)		(149	)		1,179
Total other expense, net	$	(19,224	)		(18,718	)	$	(18,295	)