As of December 28, 2019 and June 29, 2019, our accounts receivable allowance balance was $4.5 million for each of the periods presented.



	December 28, 2019		June 29, 2019
Raw materials and purchased parts	$	60.4	$	78.3
Work in process	72.0		72.5
Finished goods	47.2		78.0
Inventories⁽¹⁾	$	179.6	$	228.8

(1) The inventory balance as of December 28, 2019 and June 29, 2019 includes $1.4 million and $5.7 million, net of amortization, related to the inventory step-up adjustment from the Oclaro acquisition, respectively.



	December 28, 2019		June 29, 2019
Prepayments	$	30.9	$	32.4
Vendor receivable	37.8		36.3
Value added tax receivable	13.8		11.9
Advances to contract manufacturers	—		8.7
Assets held-for-sale	9.9		4.9
Other current assets	3.4		3.3
Prepayments and other current assets	$	95.8	$	97.5

Operating lease right-of-use assets, net were as follows (in millions):



	December 28, 2019
Operating lease right-of-use assets	$	90.3
Less: accumulated amortization	(5.6		)
Operating lease right-of-use assets, net	$	84.7



	December 28, 2019			June 29, 2019
Land	$	44.2		$	44.2
Buildings and improvement	113.9			103.7
Machinery and equipment ⁽¹⁾	515.0			500.5
Computer equipment and software	23.6			25.4
Furniture and fixtures	5.7			4.9
Leasehold improvements	23.9			31.2
Finance lease right-of-use assets ⁽¹⁾	28.3			16.0
Construction in progress	47.5			46.8
	802.1			772.7
Less: Accumulated depreciation ⁽¹⁾	(381.1		)	(339.4		)
Property, plant and equipment, net	$	421.0		$	433.3

(1) Included in the table above is our equipment acquired under finance leases. As of December 28, 2019 and June 29, 2019, the accumulated depreciation of finance lease right-of-use assets was $19.4 million and $11.2 million, respectively. For fiscal 2019 in accordance with Topic 842, we have reclassified $16.0 million of equipment acquired under finance leases from machinery and equipment to finance lease right-of-use assets to conform to current period presentation.

During the three and six months ended December 28, 2019, we recorded depreciation expense of $28.7 million and $60.3 million, respectively. During the three and six months ended December 29, 2018, we recorded depreciation expense of $26.0 million and $45.7 million, respectively.

Included in these amounts were depreciation expense for equipment acquired under finance leases in the amount of $4.3 million and $8.2 million for the three and six months ended December 28, 2019, respectively, and $1.5 million and $3.0 million for the three and six months ended December 29, 2018, respectively.

In fiscal 2019, we purchased a property in San Jose, California for $54.6 million in cash. We relocated our corporate headquarters to this new San Jose location in the second quarter of fiscal 2020. The allocations of value were $21.7 million to buildings and improvement and $32.9 million to the land.

Our construction in progress primarily includes machinery and equipment that we expect to place in service in the next 12 months.



	December 28, 2019		June 29, 2019
Restructuring accrual and related charges ⁽¹⁾	$	5.0	$	14.6
Warranty accrual ⁽²⁾	6.8		7.5
Deferred revenue and customer deposits	1.8		2.9
Finance lease liabilities, current ⁽³⁾	7.1		0.4
Income tax payable ⁽⁴⁾	25.4		8.7
Other current liabilities	11.8		5.1
Other current liabilities	$	57.9	$	39.2

(3) For fiscal 2019 in accordance with Topic 842, we have reclassified amounts from capital lease obligations to finance lease liabilities to conform to current period presentation. In addition to the $7.1 million of finance lease liabilities recorded within other current liabilities as of December 28, 2019, we also recorded $0.2 million within other non-current liabilities in the condensed consolidated balance sheet. Refer to “Note 9. Leases.”



	December 28, 2019		June 29, 2019
Asset retirement obligations	$	4.9	$	4.5
Pension and related accrual ⁽¹⁾	8.4		7.9
Deferred rent	—		2.2
Unrecognized tax benefit	19.0		18.7
Finance lease liabilities, non-current	0.2		—
Other non-current liabilities	0.5		0.4
Other non-current liabilities	$	33.0	$	33.7

(1) In connection with our acquisitions of Oclaro in fiscal 2019 and Time-Bandwidth Products Inc. in fiscal 2014, we assumed defined benefit plans for Japan and Switzerland employees, respectively. As of December 28, 2019, the projected benefit obligations for Japanese and Swiss employees were $3.0 million and $5.4 million, respectively. As of June 29, 2019, the projected benefit obligations for Japanese and Swiss employees were $2.8 million and $5.0 million, respectively. Pension and related accruals as of June 29, 2019 also include $0.1 million attributable to post-retirement benefits for executives.