Quarterly report pursuant to Section 13 or 15(d)

Financial Statement Components

v3.19.3
Financial Statement Components
3 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
FINANCIAL STATEMENT COMPONENTS
NOTE 4 – FINANCIAL STATEMENT COMPONENTS
Condensed Consolidated Balance Sheets
(In thousands)
As of
September 30, 2019
 
As of
June 30, 2019
Accounts receivable, net:
 
 
 
Accounts receivable, gross
$
1,078,051

 
$
1,002,114

Allowance for doubtful accounts
(11,863
)
 
(12,001
)
 
$
1,066,188

 
$
990,113

Inventories:
 
 
 
Raw materials
$
449,075

 
$
444,627

Customer service parts
336,809

 
328,515

Work-in-process
287,951

 
285,191

Finished goods
180,405

 
204,167

 
$
1,254,240

 
$
1,262,500

Other current assets:
 
 
 
Contract assets
$
99,068

 
$
94,015

Prepaid expenses
80,691

 
88,387

Deferred costs of revenue
65,197

 
70,721

Prepaid income and other taxes
15,858

 
51,889

Other current assets
22,985

 
18,065

 
$
283,799

 
$
323,077

Land, property and equipment, net:
 
 
 
Land
$
67,876

 
$
67,883

Buildings and leasehold improvements
405,476

 
402,678

Machinery and equipment
680,970

 
669,316

Office furniture and fixtures
29,217

 
28,282

Construction-in-process
56,828

 
26,029

 
1,240,367

 
1,194,188

Less: accumulated depreciation
(765,157
)
 
(745,389
)
 
$
475,210

 
$
448,799

Other non-current assets:
 
 
 
Executive Deferred Savings Plan(1)
$
206,235

 
$
207,581

Operating lease right of use assets
105,967

 

Other non-current assets
56,719

 
58,392

 
$
368,921

 
$
265,973

Other current liabilities:
 
 
 
Compensation and benefits
$
311,779

 
$
226,462

Executive Deferred Savings Plan
207,873

 
208,926

Other accrued expenses
163,345

 
202,647

Customer credits and advances
150,746

 
133,677

Income taxes payable
86,141

 
23,350

Interest payable
44,560

 
31,992

Operating lease liabilities, current
28,855

 

 
$
993,299

 
$
827,054

Other non-current liabilities:
 
 
 
Income taxes payable
$
358,235

 
$
392,266

Pension liabilities
80,046

 
79,622

Operating lease liabilities
75,552

 

Other non-current liabilities
129,199

 
116,009

 
$
643,032

 
$
587,897

________________

(1)
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 associated with changes in the EDSP liability included in selling, general and administrative expense was $1.9 million and $7.5 million during the three months ended September 30, 2019 and 2018, respectively. The amount of net gains associated with changes in the EDSP assets included in selling, general and administrative expense was $2.3 million and $7.4 million during the three months ended September 30, 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, 2019.
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, 2019
$
(46,086
)
 
$
113

 
$
(7,964
)
 
$
(17,918
)
 
$
(71,855
)
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2019
$
(44,041
)
 
$
(1,616
)
 
$
(8,725
)
 
$
(18,647
)
 
$
(73,029
)

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
September 30,
Accumulated OCI Components
 
Statements of Operations
 
2019
 
2018
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts(1)
 
Revenues
 
$
373

 
$
983

 
 
Costs of revenues and operating expenses
 
(1,801
)
 
(134
)
 
 
Interest expense
 
(99
)
 
188

 
 
Net gains (losses) reclassified from accumulated OCI
 
$
(1,527
)
 
$
1,037

Unrealized gains (losses) on available-for-sale securities
 
Other expense (income), net
 
$
(4
)
 
$
(481
)

__________________ 
(1)
The three months ended September 30, 2019 reflects the new accounting guidance for hedge accounting, which was adopted in the second quarter of fiscal year 2019. For additional details, refer to Note 16, “Derivative Instruments and Hedging Activities” of the Condensed Consolidated Financial Statements.
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 months ended September 30, 2019 and 2018 were $0.2 million, respectively. For additional details, refer to Note 12, “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, 2019.