Balance Sheet Components

12 Months Ended

Jul. 01, 2012

Balance Sheet Components [Abstract]

Balance Sheet Components

Note 2—Balance Sheet Components

Inventories consist of the following:

	July 1, 2012		July 3, 2011
	(In thousands)
Raw materials	$	21,003	$	26,537
Work-in-process		10,440		9,520
Finished goods		16,175		25,311
Inventories	$	47,618	$	61,368

Certain inventories, not expected to be consumed within the next 12 months, are included in the consolidated balance sheet as non-current other assets (within “Deferred Tax and Other Assets”). These inventories consist of raw materials and finished goods and totaled $2.6 million and $1.3 million, as of July 1, 2012 and July 3, 2011, respectively.

Subsequent to the issuance of the fiscal 2011 consolidated financial statements, the Company identified that certain of its inventories as of July 3, 2011 should have been classified as a long-term assets given that the estimated period of consumption exceeded twelve months from the balance sheet date. Accordingly, we have corrected the classification of these inventories as of July 3, 2011, resulting in current inventories previously reported of $62.6 million decreasing by $1.3 million to $61.4 million. In addition, we have corrected the classification of those deferred tax assets which relate to the corresponding inventories, resulting in prepaid and current assets previously reported of $14.0 million decreasing by $0.6 million to $13.4 million. The effect of these two corrections resulted in Deferred Taxes and Other Assets previously reported of $29.4 million increasing by an aggregate of $1.8 million to $31.2 million.

Property, plant and equipment, net consist of the following:

	July 1, 2012			July 3, 2011
	(In thousands)
Property, plant and equipment, net:
Land	$	200		$	200
Buildings and improvements.		16,119			16,199
Machinery and equipment		27,610			26,093
Computer software		12,384			11,967
Leasehold improvements		18,923			18,548
		75,236			73,007
Accumulated depreciation and amortization		(52,534	)		(49,752	)
	$	22,702		$	23,255

During fiscal years 2012, 2011, and 2010, depreciation expense was $5.0 million, $5.3 million, and $5.4 million, respectively.

Other accrued liabilities consist of the following:

	July 1, 2012		July 3, 2011
	(In thousands)
Other accrued liabilities:
Deferred revenue	$	6,996	$	7,058
Accrued expenses		2,717		5,823
Manufacturer sales representative commissions payable		1,303		1,187
Lease loss accrual, net		668		570
Income taxes payable		157		45
Total	$	11,841	$	14,683

Long-term obligations consist of the following:

	July 1, 2012		July 3, 2011
	(In thousands)
Long-term obligations:
Deferred revenue	$	2,254	$	2,131
Lease loss accrual, net		1,240		1,793
Rent accrual		1,102		1,088
Post-retirement benefits		173		200
Income tax		216		—
Contingent consideration for acquired business		487		—
Total	$	5,472	$	5,212