| FINANCIAL STATEMENT COMPONENTS |
NOTE 4 — FINANCIAL STATEMENT COMPONENTS
Consolidated Balance Sheets
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As of June 30, |
(In thousands) |
2019 |
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2018 |
Accounts receivable, net: |
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Accounts receivable, gross |
$ |
1,002,114 |
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|
$ |
663,317 |
|
Allowance for doubtful accounts |
(12,001 |
) |
|
(11,639 |
) |
|
$ |
990,113 |
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|
$ |
651,678 |
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Inventories: |
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Customer service parts |
$ |
328,515 |
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|
$ |
253,639 |
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Raw materials |
444,627 |
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|
331,065 |
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Work-in-process |
285,191 |
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|
280,208 |
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Finished goods |
204,167 |
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|
66,933 |
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|
$ |
1,262,500 |
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|
$ |
931,845 |
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Other current assets: |
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Contract assets |
$ |
94,015 |
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|
$ |
— |
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Deferred costs of revenue(1)
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70,721 |
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|
— |
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Prepaid expenses |
88,387 |
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|
47,088 |
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Prepaid income and other taxes |
51,889 |
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|
23,452 |
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Other current assets |
18,065 |
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|
14,619 |
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$ |
323,077 |
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$ |
85,159 |
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Land, property and equipment, net: |
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Land |
$ |
67,883 |
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$ |
40,599 |
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Buildings and leasehold improvements |
402,678 |
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|
335,647 |
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Machinery and equipment |
669,316 |
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|
577,077 |
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Office furniture and fixtures |
28,282 |
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|
22,171 |
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Construction-in-process |
26,029 |
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|
9,180 |
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1,194,188 |
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|
984,674 |
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Less: accumulated depreciation |
(745,389 |
) |
|
(698,368 |
) |
|
$ |
448,799 |
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|
$ |
286,306 |
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Other non-current assets: |
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Executive Deferred Savings Plan |
$ |
207,581 |
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|
$ |
197,213 |
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Other non-current assets |
58,392 |
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|
38,869 |
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$ |
265,973 |
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$ |
236,082 |
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Other current liabilities: |
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Executive Deferred Savings Plan |
$ |
208,926 |
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$ |
199,505 |
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Compensation and benefits |
226,462 |
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|
173,774 |
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Other accrued expenses |
196,177 |
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|
123,869 |
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Customer credits and advances |
133,677 |
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|
116,440 |
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Warranty |
6,470 |
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|
42,258 |
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Income taxes payable |
23,350 |
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|
23,287 |
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Interest payable |
31,992 |
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|
16,947 |
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$ |
827,054 |
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$ |
696,080 |
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Other non-current liabilities: |
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Pension liabilities |
$ |
79,622 |
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$ |
66,786 |
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Income taxes payable |
392,266 |
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|
371,665 |
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Other non-current liabilities |
116,009 |
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|
54,791 |
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$ |
587,897 |
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$ |
493,242 |
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________________
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(1) |
Deferred costs of revenue were previously included under deferred system profit prior to the adoption of ASC 606. |
Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) (“OCI”) as of the dates indicated below were as follows:
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(In thousands) |
Currency Translation Adjustments |
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Unrealized Gains (Losses) on Available-for-Sale Securities |
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Unrealized Gains (Losses) on Cash Flow Hedges |
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Unrealized Gains (Losses) on Defined Benefit Plans |
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Total |
Balance as of June 30, 2019 |
$ |
(44,041 |
) |
|
$ |
(1,616 |
) |
|
$ |
(8,725 |
) |
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$ |
(18,647 |
) |
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$ |
(73,029 |
) |
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Balance as of June 30, 2018 |
$ |
(29,974 |
) |
|
$ |
(11,032 |
) |
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$ |
1,932 |
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$ |
(14,859 |
) |
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$ |
(53,933 |
) |
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The effects on net income of amounts reclassified from accumulated OCI to the Consolidated Statements of Operations for the indicated periods were as follows (in thousands):
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Location in the Consolidated Statements of Operations |
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Year ended June 30, |
Accumulated OCI Components |
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2019 |
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2018 |
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts(1)
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Revenues |
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$ |
4,329 |
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$ |
955 |
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Costs of revenues and operating expenses |
|
(739 |
) |
|
2,137 |
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Interest expense |
|
424 |
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|
754 |
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Other expense (income), net |
|
4 |
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— |
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Net gains reclassified from accumulated OCI |
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$ |
4,018 |
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$ |
3,846 |
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Unrealized gains (losses) on available-for-sale securities |
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Other expense (income), net |
|
$ |
(1,294 |
) |
|
$ |
(209 |
) |
________________
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(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 16, “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 fiscal years ended June 30, 2019 and 2018 were $1.1 million and $1.8 million, respectively. For additional details, refer to Note 12, “Employee Benefit Plans.”
Consolidated Statements of Operations
The following table shows other expense (income), net for the indicated periods:
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Year ended June 30, |
(In thousands) |
2019 |
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2018 |
|
2017 |
Other expense (income), net: |
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Interest income |
$ |
(40,367 |
) |
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$ |
(36,869 |
) |
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$ |
(23,270 |
) |
Foreign exchange (gains) losses, net |
(322 |
) |
|
708 |
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|
641 |
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Net realized losses (gains) on sale of investments |
1,294 |
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|
209 |
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|
(191 |
) |
Other |
7,933 |
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|
5,470 |
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|
5,998 |
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$ |
(31,462 |
) |
|
$ |
(30,482 |
) |
|
$ |
(16,822 |
) |
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