(13) Legal Actions and Contingencies

Litigation

In the normal course of business, we are subject to routine litigation incidental to our business. While the results of this litigation cannot be predicted with certainty, we believe that their final outcome will not, individually or in aggregate, have a material adverse effect on our consolidated financial statements taken as a whole.

Contingent Obligations Under Recourse Provisions

We use independent leasing companies to offer financing to some of our customers for the purchase of some of our products. Under these arrangements, if the customer qualifies under the leasing company’s credit criteria and finances the transaction, the customers repay the leasing company on a fixed payment plan. For some of these arrangements, the customer’s receivable balance is with recourse, either limited or full, whereby we are responsible for repaying the leasing company should the customer default. We record the outstanding amount of receivables with full recourse in accrued expenses, which is offset by an equivalent amount recorded in accounts receivable. Additionally, we record a contingent provision for doubtful accounts for expected customer defaults based on historical default rates and any specific customer accounts with collection issues.

The following table summarizes the amount of receivables sold with recourse during the three months ended September 30, 2017 and September 30, 2016 (in thousands):


	Three Months Ended September 30,
	2017		2016
Total receivables sold:
Full recourse	$	4,200	$	1,501
Limited recourse		17,434		15,828
Total		21,634		17,329

The following table summarizes the maximum exposure on outstanding receivables sold with recourse and provision for doubtful accounts at September 30, 2017 and June 30, 2017 (in thousands):


	September 30, 2017		June 30, 2017
Maximum exposure on outstanding receivables:
Full recourse	$	18,312	$	18,068
Limited recourse		11,129		9,432
Total		29,441		27,500

Provision for doubtful accounts - recourse receivables	$	(1,621)	$	(1,437)