Note 5. Balance Sheet Details

Accounts receivable allowances

As of December 30, 2017 and July 1, 2017, our accounts receivable allowance balance was $1.6 million and $1.8 million, respectively.

Inventories

The components of inventories were as follows (in millions):



	December 30, 2017		July 1, 2017
Finished goods	$	99.5	$	71.7
Work in process	26.5		49.4
Raw materials and purchased parts	21.3		24.1
Inventories	$	147.3	$	145.2

Prepayments and other current assets

The components of prepayments and other current assets were as follows (in millions):



	December 30, 2017		July 1, 2017
Capitalized manufacturing overhead	$	26.3	$	30.1
Prepayments	6.4		12.3
Advances to contract manufacturers	15.1		10.5
Other current assets	12.1		10.6
Prepayments and other current assets	$	59.9	$	63.5

Property, plant and equipment, net

The components of property, plant and equipment, net were as follows (in millions):



	December 30, 2017			July 1, 2017
Land	$	10.6		$	10.6
Buildings and improvement	44.7			37.3
Machinery and equipment ⁽¹⁾	526.3			461.1
Furniture and fixtures and software	42.9			35.8
Leasehold improvements	29.9			30.5
Construction in progress	66.0			84.6
	720.4			659.9
Less: Accumulated depreciation	(419.1		)	(386.4		)
Property, plant and equipment, net	$	301.3		$	273.5

(1) In the first quarter of fiscal 2018, we started leasing equipment under a capital lease. Included in the table above is our capital lease asset of $13.4 million, net of depreciation expense of $2.2 million as of December 30, 2017.

During the three and six months ended December 30, 2017, we recorded a depreciation expense of $18.2 million and $34.9 million, respectively. During the three and six months ended December 31, 2016, we recorded a depreciation expense of $13.1 million and $25.0 million, respectively.

Our construction in progress primarily includes machinery and equipment that were purchased to increase our manufacturing capacity. We expect to place these assets in service in the next 12 months.

Other current liabilities

The components of other current liabilities were as follows (in millions):



	December 30, 2017		July 1, 2017
Warranty accrual ⁽³⁾	$	9.9	$	9.7
Restructuring accrual and related charges ⁽²⁾	0.4		3.8
Deferred revenue and customer deposits	6.6		6.9
Capital lease obligation ⁽¹⁾	9.1		—
Other current liabilities	3.4		1.5
Other current liabilities	$	29.4	$	21.9

(1) As of December 30, 2017, the amount of $2.3 million related to a capital lease was recorded in the accounts payable on the condensed consolidated balance sheet. Refer to “Note 15. Commitments and Contingencies” in the Notes to Unaudited Condensed Consolidated Financial Statements.

(2) Refer to “Note 12. Restructuring and Related Charges” in the Notes to Unaudited Condensed Consolidated Financial Statements.

(3) Refer to “Note 15. Commitments and Contingencies” in the Notes to Unaudited Condensed Consolidated Financial Statements.

Other non-current liabilities

The components of other non-current liabilities were as follows (in millions):



	December 30, 2017		July 1, 2017
Asset retirement obligation	$	2.5	$	2.5
Pension and related accrual	4.3		3.9
Deferred rent	3.3		3.3
Unrecognized tax benefit	7.2		10.5
Capital lease obligation ⁽¹⁾	3.1		—
Other non-current liabilities	4.0		4.8
Other non-current liabilities	$	24.4	$	25.0

(1) Refer to “Note 15. Commitments and Contingencies” in the Notes to Unaudited Condensed Consolidated Financial Statements.