Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided below.

The Company’s accounts receivable are solely related to the Nexsan Business and reported on the Consolidated Balance Sheets net of reserves and allowances. Reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts. See the table below for additional information on reserves and allowances.



	Accounts Receivable
	(In millions)
Reserves and Allowances
Balance, as of December 31, 2015	$	0.6
Additions	0.1
Write-offs, net of recoveries	(0.5		)
Balance, as of December 31, 2016	$	0.2
Additions	0.2
Write-offs, net of recoveries	—
Balance, as of December 31, 2017	$	0.4

In the first quarter of 2017, Nexsan sold $1.2 million of its accounts receivable to individuals introduced by or affiliated with Spear Point for a discounted purchase price of $1.1 million, subject to a right to repurchase within five months of the original sale at the original sales price plus 2% interest per month. The accounts receivable sale was recorded as a sale of financial assets under ASC 860. The purchase price discounts associated with the sales of Nexsan Business accounts receivable are recorded in Other income (expense), net in our Consolidated Statement of Operations. The amount of the accounts receivable sold was excluded from our Consolidated Balance Sheet. As of December 31, 2017, $0.8 million of the accounts receivable had been collected.

Inventories of $3.5 million and $4.1 million as of December 31, 2017 and December 31, 2016, respectively, represent raw materials and supplies.

For the year ended December 31, 2017, we recorded $1.6 million of loss on abandonment of unused property, plant and equipment related to our Nexsan Business. Property, plant and equipment balances as of the years ended December 31, 2017 and 2016 include the following:



	As of December 31,
	2017			2016
	(In millions)
Property, Plant and Equipment
Buildings and leasehold improvements	0.5			$	3.3
Machinery and equipment	10.0			9.4
Total	10.5			12.7
Less accumulated depreciation	(9.7		)	(9.9		)
Property, plant and equipment, net	$	0.8		$	2.8

Other assets as of December 31, 2017 include a $4.0 million strategic investment in equity securities, which is consistent with our stated strategy of exploring a diverse range of new strategic asset management business opportunities for our portfolio. We account for such investments under the cost method of accounting.

Other current liabilities (included as a separate line item in our Consolidated Balance Sheets) include the following:



	December 31,
	2017		2016
	(In millions)
Accrued payroll	$	1.5	$	2.6
Deferred revenue	7.2		6.7
Restructuring accruals (Note 7)	0.3		—
Levy accruals	5.6		4.9
Other current liabilities	2.1		1.8
Total other current liabilities	$	16.7	$	16.0

Other liabilities as of December 31, 2017 include pension liabilities of $24.4 million and other liabilities of $5.3 million. Other liabilities as of December 31, 2016 include pension liabilities of $24.3 million and other liabilities of $5.1 million. See Note 9 - Retirement Plans for additional information on pension liabilities.