Balance Sheet Components

Accounts Receivable, net

Our net accounts receivable as of April 1, 2016 and July 3, 2015 was as follows:



	April 1, 2016			July 3, 2015
	(In millions)
Accounts receivable	$	73.3		$	90.2
Less allowances for collection losses	(7.6		)	(6.7		)
	$	65.7		$	83.5

We regularly require letters of credit from some customers and, from time to time, we discount these letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Under these arrangements, collection risk is fully transferred to the financial institutions. We record the financing charges on discounting these letters of credit as interest expense. Total customer letters of credit discounted and related interest expense were as follows:



	Quarter Ended				Three Quarters Ended
	April 1, 2016		April 3, 2015		April 1, 2016		April 3, 2015
	(In millions)
Customer letters of credit being discounted	$	0.3	$	2.6	$	18.8	$	10.4
Interest expense	$	0.0	$	0.0	$	0.1	$	0.1

Inventories

Our inventories as of April 1, 2016 and July 3, 2015 were as follows:



	April 1, 2016		July 3, 2015
	(In millions)
Finished products	$	22.2	$	21.1
Work in process	4.1		3.8
Raw materials and supplies	6.7		8.0
	$	33.0	$	32.9
Deferred cost of revenue included within finished goods	$	3.6	$	2.2
Consigned inventories included within raw materials and supplies	$	6.6	$	6.8

We recorded charges to adjust our inventory and customer service inventory to the lower of cost or market. These charges were primarily due to excess and obsolete inventory resulting from product transitioning and discontinuance. During the third quarter and first three quarters of fiscal 2016 and 2015, such charges incurred were classified in cost of product sales as follows:



	Quarter Ended						Three Quarters Ended
	April 1, 2016			April 3, 2015			April 1, 2016			April 3, 2015
	(In millions, except percentages)
Excess and obsolete inventory charges	$	1.1		$	1.4		$	3.1		$	3.3
Customer service inventory write-downs	0.2			0.8			0.9			2.1
	$	1.3		$	2.2		$	4.0		$	5.4
As % of revenue	2.2		%	2.9		%	1.9		%	2.2		%

Property, Plant and Equipment, net

Our property, plant and equipment, net as of April 1, 2016 and July 3, 2015 were as follows:



	April 1, 2016			July 3, 2015
	(In millions)
Land	$	0.7		$	0.7
Buildings and leasehold improvements	11.8			9.7
Software	13.6			13.6
Machinery and equipment	46.1			45.2
	72.2			69.2
Less accumulated depreciation and amortization	(52.8		)	(44.9		)
	$	19.4		$	24.3

Depreciation and amortization expense related to property, plant and equipment, including amortization of software developed for internal use, was as follows:



	Quarter Ended				Three Quarters Ended
	April 1, 2016		April 3, 2015		April 1, 2016		April 3, 2015
	(In millions)
Depreciation and amortization	$	1.6	$	1.8	$	5.0	$	5.3

Accrued Warranties

We accrue for the estimated cost to repair or replace products under warranty at the time of sale. Changes in our warranty liability, which is included as a component of other accrued expenses in the condensed consolidated balance sheets, during the third quarter and first three quarters of fiscal 2016 and 2015 were as follows:



	Quarter Ended						Three Quarters Ended
	April 1, 2016			April 3, 2015			April 1, 2016			April 3, 2015
	(In millions)
Balance as of the beginning of the period	$	4.8		$	3.7		$	4.2		$	3.8
Warranty provision recorded during the period	0.6			1.5			3.0			4.1
Consumption during the period	(0.9		)	(1.2		)	(2.7		)	(3.9		)
Balance as of the end of the period	$	4.5		$	4.0		$	4.5		$	4.0