A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset on the Company’s balance sheet. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year, totaled $4.3 million and $4.3 million at March 31, 2020 and June 30, 2019, respectively, and are included in other assets in the unaudited condensed consolidated balance sheets. The Company evaluates the credit quality of an obligor at contract inception and monitors it 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 transaction. 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. The Company performed an assessment of the allowance for credit losses related to its financing receivables as of March 31, 2020 and June 30, 2019. Based upon such assessment, the Company recorded adjustments of $4.4 million and $3.6 million to the allowance for credit losses related to such financing receivables for the nine months periods ended March 31, 2020 and June 30, 2019, respectively.

The full effects of the COVID-19 pandemic on the Company’s customers are highly uncertain and cannot be predicted. As a result, the Company’s future collection experience could differ significantly from historical collection trends. If the Company’s customers experience a negative impact on their cash flows, it could have a material adverse effect on the Company’s results of operations and financial condition.

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

March 31, 2020	Financed Service Contracts and Other
Gross	$	13,589
Residual value		—
Unearned income		(1,664	)
Allowance for credit loss		(4,369	)
Total, net	$	7,556
Reported as:
Current	$	3,262
Non-current		4,294
Total, net	$	7,556

June 30, 2019	Financed Service Contracts and Other
Gross	$	13,288
Residual value		—
Unearned income		(1,535	)
Allowance for credit loss		(3,582	)
Total, net	$	8,171
Reported as:
Current	$	3,902
Non-current		4,269
Total, net	$	8,171

	March 31, 2020		June 30, 2019
Raw materials	$	48,262	$	40,966
Work-in-process		20,127		18,152
Finished goods		67,888		61,705
Inventories	$	136,277	$	120,823

	March 31, 2020			June 30, 2019
Furniture and fixtures	$	2,748		$	2,728
Computer and office equipment		10,854			11,183
Software		11,462			11,236
Leasehold improvements		25,968			25,741
Machinery and equipment		46,125			45,472
Construction in progress		2,829			1,658
		99,986			98,018
Less: Accumulated depreciation		(83,684	)		(80,896	)
Property and equipment, net	$	16,302		$	17,122

Depreciation expense related to property and equipment for the three and nine months ended March 31, 2020 was $1.8 million and $5.5 million, respectively. Depreciation expense related to property and equipment for the three and nine months ended March 31, 2019 was $1.9 million and $6.0 million, respectively.

The changes in accumulated other comprehensive loss are excluded from earnings and reported as a component of stockholders’ equity. The foreign currency translation adjustment results from those subsidiaries not using the U.S. Dollar as their functional currency since the majority of their economic activities are primarily denominated in their applicable local currency. Accordingly, all assets and liabilities related to these operations are translated to the U.S. Dollar at the current exchange rates at the end of each period. Revenues and expenses are translated at average exchange rates in effect during the period.

The components of accumulated other comprehensive loss in the equity section of the balance sheets are as follows (in thousands):

	March 31, 2020			June 30, 2019
Cumulative foreign currency translation adjustment	$	221		$	990
Defined benefit pension obligation		(1,000	)		(1,000	)
Accumulated other comprehensive loss	$	(779	)	$	(10	)