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Balance Sheet and Other Details | 12 Months Ended
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Jun. 29, 2024
Balance Sheet And Other Details |
Balance Sheet and Other Details | Note 6. Balance Sheet and Other Details Contract Balances Unbilled Receivables: The Company records a receivable when an unconditional right to consideration exists and transfer of control has occurred, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of customer invoicing. Payment terms vary based on product or service offerings and payment is generally required within 30 to 90 days from date of invoicing. Certain performance obligations may require payment before delivery of the service to the customer. Contract Assets: A Contract Asset is recognized when a conditional right to consideration exists and transfer of control has occurred. Contract Assets include fixed fee professional services, where the transfer of services has occurred in advance of the Company's right to invoice. Contract Assets, included in Accounts receivable, net, on the Consolidated Balance Sheets, are not material to the Consolidated Financial Statements. Contract Asset balances will fluctuate based upon the timing of transfer of services, billings and customers’ acceptance of contractual milestones. Gross Receivables: Includes both billed and Unbilled Receivables/Contract Assets. As of June 29, 2024 and July 1, 2023, the Company had total Unbilled Receivables/Contract Assets of $16.3 million and $13.7 million, respectively. Deferred Revenue: Deferred revenue consists of contract liabilities primarily related to support, solution deployment services, software maintenance, product, professional services, and training when the Company has a right to invoice or payments have been received and transfer of control has not occurred. Revenue is recognized on these items when the revenue recognition criteria are met, generally resulting in ratable recognition over the contract term. The Company also has short-term and long-term deferred revenues related to undelivered hardware and professional services, consisting of installations and consulting engagements, which are recognized as the Company's performance obligations under the contract are completed and accepted by the customer. The following table summarizes the activity related to deferred revenue, for the year ended June 29, 2024 (in millions):
| June 29, 2024
Deferred revenue: |
Balance at beginning of period | $ | 102.0 |
Revenue deferrals for new contracts(1) | 102.4 |
Revenue recognized during the period(2) | (113.0) |
Balance at end of period(3) | $ | 91.4 |
Short-term deferred revenue | $ | 65.7 |
Long-term deferred revenue | $ | 25.7 |
(1) Included in these amounts is the impact from foreign currency exchange rate fluctuations. (2) Revenue recognized during the period represents releases from the balance at the beginning of the period as well as releases from the following period quarter-end deferrals. (3) The long-term portion of deferred revenue is included as a component of Other non-current liabilities on the Consolidated Balance Sheets. Remaining Performance Obligations: Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered or are incomplete, as of June 29, 2024. Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded. The aggregate amount of the transaction price allocated to remaining performance obligations does not include amounts owed under cancellable contracts where there is no substantive termination penalty. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that has not materialized, and adjustments for currency. The value of the transaction price allocated to remaining performance obligations as of June 29, 2024, was $237.8 million. The Company expects to recognize 88% of the remaining performance obligations as revenue within the next 12 months, and the residual thereafter. Accounts Receivable - Allowance for Credit Losses The table below presents the activities and balances for allowance for credit losses, as follows (in millions):
| Balance at Beginning of Period |  |  |  | Charged to Costs and Expenses |  | Deduction(1) |  | Balance at End of Period
Year Ended June 29, 2024 | $ | 1.0 |  |  |  |  | $ | 1.3 |  |  | $ | (0.7) |  |  | $ | 1.6 |
Year Ended July 1, 2023 | $ | 1.4 |  |  |  |  | $ | 0.4 |  |  | $ | (0.8) |  |  | $ | 1.0 |
Year Ended July 2, 2022 | $ | 2.0 |  |  |  |  | $ | 0.9 |  |  | $ | (1.5) |  |  | $ | 1.4 |
(1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries. Inventories, net The following table presents the components of inventories, net, as follo ws (in millions):
| June 29, 2024 |  | July 1, 2023
Finished goods | $ | 44.6 |  |  | $ | 49.0 |
Work in process | 15.4 |  |  | 17.7 |
Raw materials | 36.5 |  |  | 49.4 |
Inventories, net | $ | 96.5 |  |  | $ | 116.1 |
Prepayments and Other Current Assets The following table presents the components of prepayments and other current assets, as follo ws (in millions):
| June 29, 2024 |  | July 1, 2023
Refundable income taxes | $ | 28.5 |  |  | $ | 27.6 |
Prepayments | 18.5 |  |  | 16.5 |
Advances to contract manufacturers | 5.7 |  |  | 9.8 |
Transaction tax receivables | 3.3 |  |  | 5.1 |
Assets held for sale | 2.5 |  |  | 2.5 |
Fair value of forward contracts | 1.7 |  |  | 3.5 |
Other current assets | 10.5 |  |  | 7.1 |
Prepayments and other current assets | $ | 70.7 |  |  | $ | 72.1 |
Property, Plant and Equipment, net The following table presents the components of property, plant and equipment, net, as follows (in millions):
| June 29, 2024 |  | July 1, 2023
Land | $ | 19.5 |  |  | $ | 19.6 |
Buildings and improvements | 74.9 |  |  | 74.9 |
Machinery and equipment | 378.6 |  |  | 362.6 |
Furniture, fixtures, software and office equipment | 70.7 |  |  | 76.7 |
Leasehold improvements | 73.0 |  |  | 70.7 |
Construction in progress | 20.0 |  |  | 24.5 |
Property, plant and equipment, gross | 636.7 |  |  | 629.0 |
Less: Accumulated depreciation and amortization | (408.5) |  |  | (386.0) |
Property, plant and equipment, net | $ | 228.2 |  |  | $ | 243.0 |
Other Non-Current Assets The following table presents the components of other non-current assets, as follo ws (in millions):
| June 29, 2024 |  | July 1, 2023
Operating ROU assets | $ | 35.8 |  |  | $ | 40.4 |
Long-term restricted cash | 5.5 |  |  | 4.6 |
Deferred contract cost | 2.5 |  |  | 2.9 |
Deposits | 2.4 |  |  | 2.3 |
Debt issuance cost - Revolving Credit Facility | 1.9 |  |  | 2.8 |
Other non-current assets | 9.9 |  |  | 8.7 |
Other non-current assets | $ | 58.0 |  |  | $ | 61.7 |
Other Current Liabilities The following table presents the components of other current liabilities, as follows (in millions):
| June 29, 2024 |  | July 1, 2023
Restructuring accrual (Note 13) | $ | 14.1 |  |  | $ | 5.8 |
Operating lease liabilities | 9.8 |  |  | 10.1 |
Income tax payable | 5.3 |  |  | 4.4 |
Interest payable | 5.1 |  |  | 5.5 |
Transaction tax payable | 4.0 |  |  | 4.3 |
Warranty accrual | 3.4 |  |  | 4.2 |
Fair value of forward contracts | 1.5 |  |  | 2.4 |
Acquisition related holdback and related accruals | — |  |  | 4.1 |
Fair value of contingent consideration (Note 5) | — |  |  | 1.1 |
Other | 14.3 |  |  | 7.9 |
Other current liabilities | $ | 57.5 |  |  | $ | 49.8 |
Other Non-Current Liabilities The following table presents the components of other non-current liabilities, as follo ws (in millions):
| June 29, 2024 |  | July 1, 2023
Pension and post-employment benefits | $ | 51.2 |  |  | $ | 53.2 |
Operating lease liabilities | 25.7 |  |  | 29.4 |
Long-term deferred revenue | 25.7 |  |  | 23.4 |
Uncertain tax position | 17.0 |  |  | 15.8 |
Financing obligation | 15.7 |  |  | 15.8 |
Deferred tax liability | 11.7 |  |  | 13.9 |
Fair value of contingent consideration (Note 5) | 9.5 |  |  | 18.6 |
Warranty accrual | 4.0 |  |  | 4.8 |
Asset retirement obligations | 3.0 |  |  | 3.8 |
Restructuring accrual (Note 13) | 0.8 |  |  | — |
Other | 7.3 |  |  | 8.0 |
Other non-current liabilities | $ | 171.6 |  |  | $ | 186.7 |
Interest and Other Income, net The following table presents the components of interest and other income, net, as follows (in millions):
| Years Ended
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022
Interest income | $ | 18.9 |  |  | $ | 10.2 |  |  | $ | 3.4 |
Foreign exchange (loss) gain, net | (3.1) |  |  | (2.2) |  |  | 1.4 |
Gain on litigation settlement | 7.3 |  |  | — |  |  | — |
Other (loss) income, net | (1.4) |  |  | (0.4) |  |  | 0.4 |
Interest and other income, net | $ | 21.7 |  |  | $ | 7.6 |  |  | $ | 5.2 |

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