Balance Sheet Components

Accounts Receivable, net

Our net accounts receivable were as follows:



(In thousands)	March 31, 2017			July 1, 2016
Accounts receivable	$	51,894		$	71,416
Less allowances for collection losses	(6,717		)	(7,967		)
	$	45,177		$	63,449

Inventories

Our inventories were as follows:



(In thousands)	March 31, 2017		July 1, 2016
Finished products	$	14,375	$	20,044
Work in process	3,277		5,104
Raw materials and supplies	2,686		2,145
Total inventories	$	20,338	$	27,293
Deferred cost of revenue included within finished goods	$	6,614	$	5,984
Consigned inventories included within raw materials and supplies	$	1,701	$	2,035

We recorded charges to adjust our inventory and customer service inventory to the lower of cost or market. These charges were primarily due to excess and obsolete inventory resulting from product transitioning or discontinuance. During the three and nine months ended March 31, 2017 and April 1, 2016, we recorded a recovery of $0.4 million related to previously reserved inventory due to sell through. Recovery from sell through or charges incurred were classified in cost of product sales as follows:



	Three Months Ended					Nine Months Ended
(In thousands)	March 31, 2017			April 1, 2016		March 31, 2017		April 1, 2016
Excess and obsolete inventory (recovery) charges	$	(399	)	$	1,089	$	168	$	3,046
Customer service inventory write-downs	328			204		858		552
	$	(71	)	$	1,293	$	1,026	$	3,598

Property, Plant and Equipment, net

Our property, plant and equipment, net were as follows:



(In thousands)	March 31, 2017			July 1, 2016
Land	$	710		$	710
Buildings and leasehold improvements	11,362			11,714
Software	14,375			14,620
Machinery and equipment	41,572			42,960
	68,019			70,004
Less accumulated depreciation and amortization	(52,306		)	(51,842		)
	$	15,713		$	18,162

Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows:



	Three Months Ended				Nine Months Ended
(In thousands)	March 31, 2017		April 1, 2016		March 31, 2017		April 1, 2016
Depreciation and amortization	$	1,404	$	1,668	$	4,540	$	5,044

Accrued Expenses

Our accrued expenses are summarized below:



(In thousands)	March 31, 2017		July 1, 2016
Accrued compensation and benefits	$	8,019	$	7,161
Accrued commissions	1,839		3,551
Accrued warranties	3,500		3,944
Other	9,077		8,549
	$	22,435	$	23,205

Accrued Warranties

We accrue for the estimated cost to repair or replace products under warranty at the time of sale. Changes in our warranty liability, which is included as a component of accrued expenses in the unaudited condensed consolidated balance sheets were as follows:



	Three Months Ended						Nine Months Ended
(In thousands)	March 31, 2017			April 1, 2016			March 31, 2017			April 1, 2016
Balance as of the beginning of the period	$	3,559		$	4,797		$	3,944		$	4,221
Warranty provision recorded during the period	597			603			1,413			3,016
Consumption during the period	(656		)	(926		)	(1,857		)	(2,763		)
Balance as of the end of the period	$	3,500		$	4,474		$	3,500		$	4,474

Advanced payments and Unearned Income

Our advanced payments and unearned income are summarized below:



(In thousands)	March 31, 2017		July 1, 2016
Advanced payments	$	9,940	$	12,124
Unearned income	13,278		18,491
	$	23,218	$	30,615