Quarterly report pursuant to Section 13 or 15(d)

Financial Statement Components

v3.10.0.1
Financial Statement Components
6 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
FINANCIAL STATEMENT COMPONENTS
NOTE 4 – FINANCIAL STATEMENT COMPONENTS
Consolidated Balance Sheets
(In thousands)
As of
December 31, 2018
 
As of
June 30, 2018
Accounts receivable, net:
 
 
 
Accounts receivable, gross
$
669,650

 
$
663,317

Allowance for doubtful accounts
(11,570
)
 
(11,639
)
 
$
658,080

 
$
651,678

Inventories:
 
 
 
Customer service parts
$
275,045

 
$
253,639

Raw materials
340,253

 
331,065

Work-in-process
305,864

 
280,208

Finished goods
84,828

 
66,933

 
$
1,005,990

 
$
931,845

Other current assets:
 
 
 
Contract assets
$
23,316

 
$

Deferred costs of revenue(1)
32,821

 

Prepaid expenses
48,411

 
47,088

Prepaid income and other taxes
12,181

 
23,452

Other current assets
10,621

 
14,619

 
$
127,350

 
$
85,159

Land, property and equipment, net:
 
 
 
Land
$
40,593

 
$
40,599

Buildings and leasehold improvements
340,722

 
335,647

Machinery and equipment
602,387

 
577,077

Office furniture and fixtures
22,569

 
22,171

Construction-in-process
16,360

 
9,180

 
1,022,631

 
984,674

Less: accumulated depreciation
(716,280
)
 
(698,368
)
 
$
306,351

 
$
286,306

Other non-current assets:
 
 
 
Executive Deferred Savings Plan(2)
$
181,103

 
$
197,213

Other non-current assets
22,897

 
19,606

 
$
204,000

 
$
216,819

Other current liabilities:
 
 
 
Executive Deferred Savings Plan(2)
$
181,976

 
$
199,505

Compensation and benefits
230,079

 
177,587

Other accrued expenses
107,644

 
123,869

Customer credits and advances
144,408

 
116,440

Warranty
666

 
42,258

Income taxes payable
33,153

 
23,287

Interest payable
16,947

 
16,947

 
$
714,873

 
$
699,893

Other non-current liabilities:
 
 
 
Income taxes payable
$
341,745

 
$
371,665

Pension liabilities
67,139

 
66,786

Other non-current liabilities
37,395

 
32,912

 
$
446,279

 
$
471,363

________________
(1)
Deferred costs of revenue were previously included under deferred system profit prior to the adoption of ASC 606.
(2)
We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense (benefit) associated with changes in the EDSP liability included in selling, general and administrative expense was $(19.8) million and $7.0 million during the three months ended December 31, 2018 and 2017, respectively and was $(12.3) million and $13.8 million during the six months ended December 31, 2018 and 2017, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in selling, general and administrative expense was $(19.4) million and $7.0 million during the three months ended December 31, 2018 and 2017, respectively and was $(12.0) million and $13.9 million the six months ended December 31, 2018 and 2017, respectively. For additional details, refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018.
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 December 31, 2018
$
(43,041
)
 
$
(6,736
)
 
$
(4,402
)
 
$
(16,268
)
 
$
(70,447
)
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2018
$
(29,974
)
 
$
(11,032
)
 
$
1,932

 
$
(14,859
)
 
$
(53,933
)

The effects on net income (loss) 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
December 31,
 
Six months ended
December 31,
Accumulated OCI Components
 
Statements of Operations
 
2018
 
2017
 
2018
 
2017
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts(1)
 
Revenues
 
$
1,705

 
$
397

 
$
2,688

 
$
1,365

 
 
Costs of revenues
 
(158
)
 
377

 
(292
)
 
1,338

 
 
Interest expense
 
189

 
189

 
377

 
378

 
 
Net gains (losses) reclassified from accumulated OCI
 
$
1,736

 
$
963

 
$
2,773

 
$
3,081

Unrealized gains (losses) on available-for-sale securities
 
Other expense (income), net
 
$
(469
)
 
$
(69
)
 
$
(950
)
 
$
(63
)

__________________ 
(1)
Reflects the adoption of the new accounting guidance for hedge accounting in the second quarter of fiscal year 2019. For additional details, refer to Note 15, “Derivative Instruments and Hedging Activities.”
The amounts reclassified out of accumulated OCI related to our defined benefit pension plans, which were recognized as a component of net periodic cost for the three and six months ended December 31, 2018 were $0.2 million and $0.4 million, respectively. The amounts reclassified out of accumulated OCI related to our defined benefit pension plans, which were recognized as a component of net periodic cost for the three and six months ended December 31, 2017 were $0.4 million and $0.8 million, respectively. For additional details, refer to Note 11, “Employee Benefit Plans” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018.