6. Inventory

The adoption of the new revenue recognition standard (see Note 3) impacted the previously reported inventory at March 31, 2018 as follows:

	March 31, 2018
	As Previously			Adoption of
	Reported			ASU 2014-09					As Adjusted
Inventory
Raw materials	$	25,805,000		$	51,330,000		(1	)	$	77,135,000
Work-in-process		635,000			1,948,000		(1	)		2,583,000
Finished goods		53,973,000			34,201,000		(2	)		88,174,000
		80,413,000			87,479,000					167,892,000
Less allowance for excess and obsolete inventory		(4,138,000	)		(2,544,000	)	(3	)		(6,682,000	)
Total	$	76,275,000		$	84,935,000				$	161,210,000

Inventory unreturned	$	7,508,000		$	-				$	7,508,000
Long-term core inventory
Used cores held at the Company's facilities	$	53,278,000		$	(53,278,000	)	(1	)	$	-
Used cores expected to be returned by customers		12,970,000			(12,970,000	)	(4	)		-
Remanufactured cores held in finished goods		34,201,000			(34,201,000	)	(2	)		-
Remanufactured cores held at customers' locations		203,751,000			(203,751,000	)	(5	)		-
		304,200,000			(304,200,000	)				-
Less allowance for excess and obsolete inventory		(2,544,000	)		2,544,000		(3	)		-
Total	$	301,656,000		$	(301,656,000	)			$	-

Long-term core inventory deposits	$	5,569,000		$	(5,569,000	)	(6	)	$	-

(1)

Used cores held at the Company’s facilities of $53,278,000 have been reclassified to raw materials and work-in-process in the consolidated balance sheet at March 31, 2018.

(2)

Remanufactured Cores held in finished goods of $34,201,000 have been reclassified to finished goods in the consolidated balance sheet at March 31, 2018.

(3)

The allowance for excess and obsolete inventory of $2,544,000 previously included in long-term core inventory has been reclassified to inventory—net in the consolidated balance sheet at March 31, 2018.

(4)

Used cores expected to be returned by customers of $12,970,000 have been reclassified to contract assets in the consolidated balance sheet at March 31, 2018.

(5)

Remanufactured cores held at customers’ locations of $203,751,000 have been reclassified to current and long-term contract assets in the consolidated balance sheet at March 31, 2018.

(6)

Long-term core inventory deposits of $5,569,000 have been reclassified to long-term contract assets in the consolidated balance sheet at March 31, 2018.

Inventory is comprised of the following:

	June 30, 2018			March 31, 2018
Inventory
Raw materials	$	84,869,000		$	77,135,000
Work-in-process		4,294,000			2,583,000
Finished goods		106,785,000			88,174,000
		195,948,000			167,892,000
Less allowance for excess and obsolete inventory		(8,606,000	)		(6,682,000	)
Total inventory - net	$	187,342,000		$	161,210,000
Inventory unreturned	$	8,315,000		$	7,508,000