Property and Equipment, net

12 Months Ended

Jun. 30, 2015

Property and Equipment, net [Abstract]

Property and Equipment, net

5. Property and Equipment, net

Property and equipment consists of the following:

	June 30,
	2015			2014
Leasehold improvements	$	2,723		$	2,807
Machinery and equipment		14,075			14,196
		16,798			17,003
Less: Accumulated depreciation		(14,350	)		(14,835	)
	$	2,448		$	2,168

For the years ended June 30, 2015, 2014 and 2013, depreciation expense for property and equipment amounted to $1,580, $1,618 and $1,863, respectively.

We recorded an asset for leasehold improvements and a corresponding liability for the present value of the estimated asset retirement obligation associated with the lease restoration costs at some of our international locations.  The asset was depreciated over the expected life of the corresponding lease and has a net book value of $0 as of both June 30, 2015 and 2014, while the liability continues to accrete to the amount of the estimated retirement obligation.  Expense associated with accretion of the obligation is recorded to operating expenses.  The changes to the asset retirement obligation associated with lease restoration costs are as follows:

Asset retirement obligation at June 30, 2014	$	413
Accretion of asset retirement obligation		-
Payment of restoration costs		-
Impact of foreign exchange rates		(74	)
Asset retirement obligation at June 30, 2015	$	339