Quarterly report pursuant to Section 13 or 15(d)

Financial Statement Components

v3.19.1
Financial Statement Components
9 Months Ended
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
FINANCIAL STATEMENT COMPONENTS
NOTE 4 – FINANCIAL STATEMENT COMPONENTS
Consolidated Balance Sheets
(In thousands)
As of
March 31, 2019
 
As of
June 30, 2018
Accounts receivable, net:
 
 
 
Accounts receivable, gross
$
970,291

 
$
663,317

Allowance for doubtful accounts
(12,270
)
 
(11,639
)
 
$
958,021

 
$
651,678

Inventories:
 
 
 
Customer service parts
$
337,720

 
$
253,639

Raw materials
466,133

 
331,065

Work-in-process
314,480

 
280,208

Finished goods
198,927

 
66,933

 
$
1,317,260

 
$
931,845

Other current assets:
 
 
 
Contract assets
$
91,518

 
$

Deferred costs of revenue(1)
48,389

 

Prepaid expenses
76,507

 
47,088

Prepaid income and other taxes
34,479

 
23,452

Other current assets
19,186

 
14,619

 
$
270,079

 
$
85,159

Land, property and equipment, net:
 
 
 
Land
$
41,422

 
$
40,599

Buildings and leasehold improvements
389,270

 
335,647

Machinery and equipment
662,025

 
577,077

Office furniture and fixtures
28,475

 
22,171

Construction-in-process
27,766

 
9,180

 
1,148,958

 
984,674

Less: accumulated depreciation
(737,106
)
 
(698,368
)
 
$
411,852

 
$
286,306

Other non-current assets:
 
 
 
Executive Deferred Savings Plan(2)
$
203,286

 
$
197,213

Other non-current assets
56,804

 
38,869

 
$
260,090

 
$
236,082

Other current liabilities:
 
 
 
Compensation and benefits
$
246,429

 
$
173,774

Executive Deferred Savings Plan(2)
204,349

 
199,505

Other accrued expenses
176,677

 
123,869

Customer credits and advances
148,389

 
116,440

Interest payable
44,046

 
16,947

Warranty
6,740

 
42,258

Income taxes payable
7,117

 
23,287

 
$
833,747

 
$
696,080

Other non-current liabilities:
 
 
 
Income taxes payable
$
390,904

 
$
371,665

Pension liabilities
67,103

 
66,786

Other non-current liabilities
117,592

 
54,791

 
$
575,599

 
$
493,242

________________
(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 $19.3 million and $0.9 million during the three months ended March 31, 2019 and 2018, respectively and was $7.0 million and $14.7 million during the nine months ended March 31, 2019 and 2018, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in selling, general and administrative expense was $19.7 million and $0.5 million during the three months ended March 31, 2019 and 2018, respectively and was $7.7 million and $14.4 million the nine months ended March 31, 2019 and 2018, 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 March 31, 2019
$
(43,630
)
 
$
(3,181
)
 
$
(6,266
)
 
$
(15,830
)
 
$
(68,907
)
 
 
 
 
 
 
 
 
 
 
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
March 31,
 
Nine months ended
March 31,
Accumulated OCI Components
 
Statements of Operations
 
2019
 
2018
 
2019
 
2018
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts(1)
 
Revenues
 
$
655

 
$
(65
)
 
$
3,343

 
$
1,300

 
 
Costs of revenues
 
(17
)
 
570

 
(309
)
 
1,908

 
 
Interest expense
 
150

 
189

 
527

 
567

 
 
Other expense (income), net
 
158

 

 
158

 

 
 
Net gains (losses) reclassified from accumulated OCI
 
$
946

 
$
694

 
$
3,719

 
$
3,775

Unrealized gains (losses) on available-for-sale securities
 
Other expense (income), net
 
$
(313
)
 
$
2

 
$
(1,263
)
 
$
(61
)

__________________ 
(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 nine months ended March 31, 2019 were $0.2 million and $0.6 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 nine months ended March 31, 2018 were $0.4 million and $1.2 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.