Balance Sheet Components

Accounts Receivable, net

Our net accounts receivable as of December 30, 2016 and July 1, 2016 were as follows:



(In thousands)	December 30, 2016			July 1, 2016
Accounts receivable	$	63,864		$	71,416
Less allowances for collection losses	(7,663		)	(7,967		)
	$	56,201		$	63,449

Inventories

Our inventories as of December 30, 2016 and July 1, 2016 were as follows:



(In thousands)	December 30, 2016		July 1, 2016
Finished products	$	14,706	$	20,044
Work in process	3,024		5,104
Raw materials and supplies	2,703		2,145
Total inventories	$	20,433	$	27,293
Deferred cost of revenue included within finished goods	$	4,947	$	5,984
Consigned inventories included within raw materials and supplies	$	1,887	$	2,035

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 or discontinuance. During the three and six months ended December 30, 2016 and January 1, 2016, such charges incurred were classified in cost of product sales as follows:



	Three Months Ended				Six Months Ended
(In thousands)	December 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
Excess and obsolete inventory charges	$	94	$	979	$	568	$	1,957
Customer service inventory write-downs	242		219		529		348
	$	336	$	1,198	$	1,097	$	2,305

Property, Plant and Equipment, net

Our property, plant and equipment, net as of December 30, 2016 and July 1, 2016 were as follows:



(In thousands)	December 30, 2016			July 1, 2016
Land	$	710		$	710
Buildings and leasehold improvements	11,346			11,714
Software	14,370			14,620
Machinery and equipment	41,259			42,960
	67,685			70,004
Less accumulated depreciation and amortization	(50,849		)	(51,842		)
	$	16,836		$	18,162

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



	Three Months Ended				Six Months Ended
(In thousands)	December 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
Depreciation and amortization	$	1,467	$	1,672	$	3,136	$	3,376

Accrued Expenses

Our accrued expenses are summarized below:



(In thousands)	December 30, 2016		July 1, 2016
Accrued compensation and benefits	$	7,663	$	7,161
Accrued commissions	1,823		3,551
Accrued warranties	3,559		3,944
Other	9,999		8,549
	$	23,044	$	23,205

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 accrued expenses in the condensed consolidated balance sheets were as follows:



	Three Months Ended						Six Months Ended
(In thousands)	December 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Balance as of the beginning of the period	$	3,704		$	4,722		$	3,944		$	4,221
Warranty provision recorded during the period	480			934			817			2,413
Consumption during the period	(625		)	(859		)	(1,202		)	(1,837		)
Balance as of the end of the period	$	3,559		$	4,797		$	3,559		$	4,797

Advanced payments and Unearned Income

Our advanced payments and unearned income are summarized below:



(In thousands)	December 30, 2016		July 1, 2016
Advanced payments	$	10,407	$	12,124
Unearned income	15,044		18,491
	$	25,451	$	30,615