Note 6. Balance Sheet and Other Details

Accounts Receivable Reserves and Allowances

The activities and balances for allowance for doubtful accounts and allowance for sales returns were as follows (in millions):

	June 30,		Charged to Costs					March 30,
	2012		and Expenses		Deduction (1)			2013
Allowance for doubtful accounts	$	2.2	$	0.5	$	(0.6	)	$	2.1
Allowance for sales returns	0.4		—		(0.3		)	0.1
Total accounts receivable reserves	$	2.6	$	0.5	$	(0.9	)	$	2.2

(1) Write-off of uncollectible accounts, net of recoveries.

Inventories, Net

Inventories, net are stated at the lower of cost or market, and include material, labor, and manufacturing overhead costs. The components of Inventories, net were as follows (in millions):

	March 30,		June 30,
	2013		2012
Finished goods	$	84.3	$	89.5
Work in process	38.5		37.3
Raw materials	30.8		47.7
Inventories, net	$	153.6	$	174.5

Property, Plant and Equipment, Net

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

	March 30,			June 30,
	2013			2012
Land	$	14.6		$	14.1
Buildings and improvements	34.8			35.8
Machinery and equipment	449.3			421.3
Furniture, fixtures, software and office equipment	171.5			166.1
Leasehold improvements	93.7			95.3
Construction-in-progress	24.1			33.0
	788.0			765.6
Less: Accumulated depreciation	(538.9		)	(512.7		)
Property, plant and equipment, net	$	249.1		$	252.9

During the first quarter of fiscal 2013, the Company completed a capital investment project in machinery and equipment to increase anti-counterfeiting production capabilities in Beijing, China that was included in Construction-in-progress as of June 30, 2012. The Company began depreciating the asset over its useful life of 20 years during the first quarter of fiscal 2013.

At March 30, 2013 and June 30, 2012, property, plant and equipment, net included $22.2 million and $23.8 million, respectively, in land and buildings related to the Santa Rosa and Eningen Transactions (as defined in “Note 16. Commitments and Contingencies” below) accounted for under the financing method. See “Note 16. Commitments and Contingencies” for more detail.

During the three months ended March 30, 2013 and March 31, 2012, the Company recorded $17.0 million and $17.6 million of depreciation expense, respectively. During the nine months ended March 30, 2013 and March 31, 2012, the Company recorded $50.8 million and $51.8 million of depreciation expense, respectively.

Prepayments and Other Current Assets

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

	March 30,		June 30,
	2013		2012
Prepayments	$	31.6	$	30.9
Advances to contract manufacturers	18.4		18.4
Deferred income tax	2.5		2.3
Refundable income taxes	2.2		4.7
Other receivables	20.6		13.0
Assets held for sale	2.2		—
Other current assets	5.9		7.9
Prepayments and other current assets	$	83.4	$	77.2

As of March 30, 2013, land and buildings owned in Switzerland met the held for sale criteria in accordance with the authoritative guidance. Accordingly, the Company has classified the land and buildings as an asset held for sale which is recorded as a component of Prepayments and other current assets in the Consolidated Balance Sheet as of March 30, 2013.

Other Current Liabilities

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

	March 30,		June 30,
	2013		2012
Deferred compensation plan	$	4.2	$	4.6
Warranty accrual	6.8		8.1
VAT liabilities	5.7		2.7
Restructuring accrual	3.0		8.6
Deferred taxes	3.5		3.1
Other	9.0		10.8
Other current liabilities	$	32.2	$	37.9

Other Non-Current Liabilities

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

	March 30,		June 30,
	2013		2012
Pension accrual and post-employment benefits	$	86.8	$	85.2
Deferred taxes	11.4		4.7
Restructuring accrual	3.1		4.0
Financing obligation	34.6		35.4
Non-current income taxes payable	10.8		9.3
Asset retirement obligations	9.1		9.2
Long-term deferred revenue	25.0		16.1
Other	25.0		12.7
Other non-current liabilities	$	205.8	$	176.6