Quarterly report pursuant to Section 13 or 15(d)

Financial Statement Components

v3.3.0.814
Financial Statement Components
3 Months Ended
Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Statement Components
NOTE 3 – FINANCIAL STATEMENT COMPONENTS
Balance Sheet Components
(In thousands)
As of
September 30, 2015
 
As of
June 30, 2015
Accounts receivable, net:
 
 
 
Accounts receivable, gross
$
482,497

 
$
607,157

Allowance for doubtful accounts
(21,684
)
 
(21,663
)
 
$
460,813

 
$
585,494

Inventories:
 
 
 
Customer service parts
$
212,945

 
$
209,726

Raw materials
221,393

 
194,218

Work-in-process
163,909

 
156,820

Finished goods
52,249

 
57,140

 
$
650,496

 
$
617,904

Other current assets:
 
 
 
Prepaid expenses
$
36,273

 
$
37,006

Income tax related receivables
14,878

 
32,850

Other current assets
11,529

 
7,958

 
$
62,680

 
$
77,814

Land, property and equipment, net:
 
 
 
Land
$
40,388

 
$
40,397

Buildings and leasehold improvements
316,486

 
316,566

Machinery and equipment
510,727

 
510,642

Office furniture and fixtures
21,505

 
21,411

Construction-in-process
4,927

 
3,152

 
894,033

 
892,168

Less: accumulated depreciation and amortization
(591,165
)
 
(577,577
)
 
$
302,868

 
$
314,591

Other non-current assets:
 
 
 
Executive Deferred Savings Plan(1)
$
157,904

 
$
165,655

Deferred tax assets – long-term
76,470

 
78,648

Other non-current assets
15,203

 
15,384

 
$
249,577

 
$
259,687

Other current liabilities:
 
 
 
Warranty
$
35,892

 
$
36,413

Executive Deferred Savings Plan(1)
160,437

 
167,886

Compensation and benefits
162,445

 
196,682

Income taxes payable
16,400

 
15,582

Interest payable
46,207

 
19,395

Customer credits and advances
93,947

 
93,212

Other accrued expenses
94,662

 
132,244

 
$
609,990

 
$
661,414

Other non-current liabilities:
 
 
 
Pension liabilities
$
55,481

 
$
55,696

Income taxes payable
62,892

 
69,018

Other non-current liabilities
47,252

 
57,516

 
$
165,625

 
$
182,230



________________
(1)
KLA-Tencor has a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan”) under which certain executives and non-employee directors may defer a portion of their compensation. Participants are credited with returns based on their allocation of their account balances among measurement funds. The Company controls the investment of these funds, and the participants remain general creditors of the Company. The Company invests these funds in certain mutual funds and such investments are classified as trading securities on the condensed consolidated balance sheets. Distributions from the Executive Deferred Savings Plan commence following a participant’s retirement or termination of employment or on a specified date allowed per the Executive Deferred Savings Plan provisions, except in cases where such distributions are required to be delayed in order to avoid a prohibited distribution under Internal Revenue Code Section 409A. Participants can generally elect the distributions to be paid in lump sum or quarterly cash payments over a scheduled period for up to 15 years and are allowed to make subsequent changes to their existing elections as permissible under the Executive Deferred Savings Plan provisions. Changes in the Executive Deferred Savings Plan liability is recorded in selling, general and administrative expense in the condensed consolidated statements of operations. The changes in the liability included in selling, general and administrative expense were $10.2 million and $1.9 million for the three months ended September 30, 2015 and 2014, respectively. Changes in the Executive Deferred Savings Plan assets are recorded as gains (losses), net in selling, general and administrative expense in the condensed consolidated statements of operations. The amount of gains (losses), net included in selling, general and administrative expense were ($10.0) million and ($1.9) million for the three months ended September 30, 2015 and 2014, respectively.
Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) (“OCI”) as of the dates indicated below were as follows:
(In thousands)
Currency Translation Adjustments
 
Unrealized Gains (Losses) on Available-for-Sale Securities
 
Unrealized Gains (Losses) on Cash Flow Hedges
 
Unrealized Gains (Losses) on Defined Benefit Plans
 
Total
Balance as of September 30, 2015
$
(34,665
)
 
$
1,129

 
$
3,104

 
$
(15,705
)
 
$
(46,137
)
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2015
$
(29,925
)
 
$
734

 
$
4,553

 
$
(15,935
)
 
$
(40,573
)

The effects on net income of amounts reclassified from accumulated OCI to the Condensed Consolidated Statement of Operations for the indicated period were as follows (in thousands):
 
 
Location in the Condensed Consolidated
 
Three months ended
September 30,
Accumulated OCI Components
 
Statements of Operations
 
2015
 
2014
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts
 
Revenues
 
$
685

 
$
269

 
 
Costs of revenues
 
(472
)
 
(41
)
 
 
Interest expense
 
189

 

 
 
Net gains reclassified from accumulated OCI
 
$
402

 
$
228

 
 
 
 
 
 
 
Unrealized gains on available-for-sale securities
 
Other expense (income), net
 
$
17

 
$
1,635


The amounts reclassified out of accumulated OCI related to the Company’s defined pension plans, which were recognized as a component of net periodic cost for the three months ended September 30, 2015 and 2014 were $0.3 million and $0.8 million, respectively. For additional details, refer to Note 11, “Employee Benefit Plans” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015.