Quarterly report pursuant to Section 13 or 15(d)

Financial Statement Components (Tables)

v3.3.1.900
Financial Statement Components (Tables)
6 Months Ended
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
Balance Sheet Components
(In thousands)
As of
December 31, 2015
 
As of
June 30, 2015
Accounts receivable, net:
 
 
 
Accounts receivable, gross
$
448,786

 
$
607,157

Allowance for doubtful accounts
(21,671
)
 
(21,663
)
 
$
427,115

 
$
585,494

Inventories:
 
 
 
Customer service parts
$
221,980

 
$
209,726

Raw materials
226,377

 
194,218

Work-in-process
186,359

 
156,820

Finished goods
57,070

 
57,140

 
$
691,786

 
$
617,904

Other current assets:
 
 
 
Prepaid expenses
$
38,625

 
$
37,006

Income tax related receivables
61,129

 
32,850

Other current assets
7,152

 
7,958

 
$
106,906

 
$
77,814

Land, property and equipment, net:
 
 
 
Land
$
40,385

 
$
40,397

Buildings and leasehold improvements
318,904

 
316,566

Machinery and equipment
508,578

 
510,642

Office furniture and fixtures
21,573

 
21,411

Construction-in-process
3,432

 
3,152

 
892,872

 
892,168

Less: accumulated depreciation and amortization
(600,479
)
 
(577,577
)
 
$
292,393

 
$
314,591

Other non-current assets:
 
 
 
Executive Deferred Savings Plan(1)
$
161,053

 
$
165,655

Deferred tax assets – long-term
77,288

 
78,648

Other non-current assets
14,938

 
15,384

 
$
253,279

 
$
259,687

Other current liabilities:
 
 
 
Warranty
$
36,148

 
$
36,413

Executive Deferred Savings Plan(1)
163,988

 
167,886

Compensation and benefits
130,394

 
196,682

Income taxes payable
18,880

 
15,582

Interest payable
19,398

 
19,395

Customer credits and advances
89,265

 
93,212

Other accrued expenses
82,508

 
132,244

 
$
540,581

 
$
661,414

Other non-current liabilities:
 
 
 
Pension liabilities
$
53,930

 
$
55,696

Income taxes payable
65,997

 
69,018

Other non-current liabilities
47,598

 
57,516

 
$
167,525

 
$
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 expense (benefit) associated with changes in the liability included in selling, general and administrative expense were $6.8 million and $6.1 million for the three months ended December 31, 2015 and 2014, respectively. The expense (benefit) associated with changes in the liability included in selling, general and administrative expense were $(3.3) million and $4.2 million for the six months ended December 31, 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 $6.9 million and $6.2 million for the three months ended December 31, 2015 and 2014, respectively. The amount of gains (losses), net included in selling, general and administrative expense were $(3.1) million and $4.4 million for the six months ended December 31, 2015 and 2014, respectively.
Components of 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, 2015
$
(36,429
)
 
$
(2,623
)
 
$
3,662

 
$
(15,129
)
 
$
(50,519
)
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2015
$
(29,925
)
 
$
734

 
$
4,553

 
$
(15,935
)
 
$
(40,573
)
Reclassification out of Accumulated Other Comprehensive Income
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
December 31,
 
Six months ended
December 31,
Accumulated OCI Components
 
Statements of Operations
 
2015
 
2014
 
2015
 
2014
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts
 
Revenues
 
$
324

 
$
1,933

 
$
1,009

 
$
2,202

 
 
Costs of revenues
 
(678
)
 
(475
)
 
(1,150
)
 
(516
)
 
 
Interest expense
 
189

 
126

 
378

 
126

 
 
Net gains reclassified from accumulated OCI
 
$
(165
)
 
$
1,584

 
$
237

 
$
1,812

 
 
 
 
 
 
 
 
 
 
 
Unrealized gains on available-for-sale securities
 
Other expense (income), net
 
$
26

 
$
281

 
$
43

 
$
1,916