Inventories, net

Inventories consist primarily of hardware and related component parts and are stated at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventories consist of the following:

Property and equipment, net

Property and equipment, net consists of the following:

Depreciation and amortization expense of property and equipment was $2.3 million, $3.0 million and $3.4 million for the years ended January 31, 2018, 2017 and 2016, respectively.

During fiscal 2018, we wrote off the book value of fixed assets that were at our closed facilities in Milpitas, California, Ft. Washington, Pennsylvania and Manilla, Philippines. These facilities were closed as a direct result of cost savings initiatives implemented during the second half of fiscal 2017. The gain (loss) on disposal associated with these closures was not material.

During the third quarter of fiscal 2017, we began actively marketing our facility in Greenville, New Hampshire for sale and identified a potential buyer. Accordingly, we determined at the time that the sale of the asset group was probable by the end of the fourth quarter of fiscal 2017. We determined that the asset group met all the criteria of held for sale accounting and classified the asset group as held for sale on our consolidated balance sheets beginning in the third quarter of fiscal 2017. Subsequently, in January 2017, after a potential buyer declined to purchase this facility, we determined that the sale of the facility was not imminent due to the location of the building and the overall market conditions in the area. Consequently, we decided to fully impair the facility since we felt that carrying amount was greater than the fair value. As a result, we recorded a $0.3 million loss on impairment of long-lived assets in our consolidated statements of operations and comprehensive income (loss) for the fiscal year ended January 31, 2017. In April 2017, we sold the facility for $0.1 million.

Investments in affiliates

In connection with the acquisition in January 2018 by T-Mobile of Layer 3, a next generation cable provider in which we previously had made an equity investment, we received $4.6 million upon closing of the transaction, with an additional payment of up to $2.1 million being held in escrow, subject to satisfaction of the escrow provisions. As a result of the sale of our investment in Layer 3, we realized a gain of $2.6 million in gain (loss) on investment in affiliates in our consolidated statements of operations and comprehensive income (loss) for fiscal 2018.

Other accrued expenses

Other accrued expenses consist of the following: