Property and Equipment, net

12 Months Ended

Jun. 30, 2014

Property and Equipment, net [Abstract]

5.	Property and Equipment, net

Property and equipment consist of the following:

	June 30,
	2014			2013
	(Dollars in thousands)

Leasehold improvements	$	2,807		$	2,641
Machinery, equipment and customer support spares		18,085			17,763
		20,892			20,404
Less: Accumulated depreciation		(17,811	)		(17,302	)
	$	3,081		$	3,102

For the years ended June 30, 2014, 2013 and 2012, depreciation expense for property and equipment amounted to $1,941,000, $2,254,000, and $2,811,000, respectively.

We recorded an asset for leasehold improvements and a corresponding liability for the present value of the estimated asset retirement obligation associated with the lease restoration costs at some of our international locations. The asset was depreciated over the expected life of the corresponding lease and has a net book value of $0 as of both June 30, 2014 and June 30, 2013, while the liability continues to accrete to the amount of the estimated retirement obligation. Expense associated with accretion of the obligation is recorded to operating expenses. The changes to the asset retirement obligation associated with lease restoration costs are as follows (in thousands):

Asset retirement obligation, June 30, 2013	$	428
Accretion of asset retirement obligation		1
Payment of restoration costs		(6	)
Impact of foreign exchange rates		(10	)
Asset retirement obligation, June 30, 2014	$	413

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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