|
Income Taxes (Tables)
|
12 Months Ended |
|
Jun. 30, 2013
|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income before Income Taxes, Domestic and Foreign |
The components of income before income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended June 30, |
(In thousands) |
2013 |
|
2012 |
|
2011 |
Domestic income before income taxes |
$ |
420,862 |
|
|
$ |
607,146 |
|
|
$ |
752,163 |
|
Foreign income before income taxes |
269,759 |
|
|
366,948 |
|
|
357,903 |
|
Total income before income taxes |
$ |
690,621 |
|
|
$ |
974,094 |
|
|
$ |
1,110,066 |
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
The provision for income taxes is comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Year ended June 30, |
2013 |
|
2012 |
|
2011 |
Current: |
|
|
|
|
|
Federal |
$ |
118,888 |
|
|
$ |
(699 |
) |
|
$ |
225,192 |
|
State |
4,404 |
|
|
51 |
|
|
2,095 |
|
Foreign |
25,112 |
|
|
24,383 |
|
|
31,578 |
|
|
$ |
148,404 |
|
|
$ |
23,735 |
|
|
$ |
258,865 |
|
Deferred: |
|
|
|
|
|
Federal |
$ |
(2,552 |
) |
|
$ |
188,882 |
|
|
$ |
40,908 |
|
State |
(1,036 |
) |
|
3,721 |
|
|
26,458 |
|
Foreign |
2,656 |
|
|
1,741 |
|
|
(10,653 |
) |
|
(932 |
) |
|
194,344 |
|
|
56,713 |
|
Provision for income taxes |
$ |
147,472 |
|
|
$ |
218,079 |
|
|
$ |
315,578 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The significant components of deferred income tax assets and liabilities are as follows:
|
|
|
|
|
|
|
|
|
(In thousands) |
As of June 30, |
2013 |
|
2012 |
Deferred tax assets: |
|
|
|
Tax credits and net operating losses |
$ |
77,512 |
|
|
$ |
66,392 |
|
Employee benefits accrual |
83,391 |
|
|
78,112 |
|
Stock-based compensation |
37,091 |
|
|
37,300 |
|
Capitalized R&D expenses |
34,791 |
|
|
57,192 |
|
Inventory reserves |
79,866 |
|
|
57,736 |
|
Non-deductible reserves |
42,256 |
|
|
45,682 |
|
Unearned revenue |
12,010 |
|
|
9,991 |
|
Other |
36,795 |
|
|
57,464 |
|
Gross deferred tax assets |
403,712 |
|
|
409,869 |
|
Valuation allowance |
(57,097 |
) |
|
(40,479 |
) |
Net deferred tax assets |
$ |
346,615 |
|
|
$ |
369,390 |
|
Deferred tax liabilities: |
|
|
|
Unremitted earnings of foreign subsidiaries not permanently reinvested |
$ |
(20,636 |
) |
|
$ |
(22,746 |
) |
Depreciation and amortization |
(13,204 |
) |
|
(10,202 |
) |
Deferred profit |
(10,351 |
) |
|
(37,906 |
) |
Unrealized gain on investments |
(572 |
) |
|
(1,070 |
) |
Total deferred tax liabilities |
(44,763 |
) |
|
(71,924 |
) |
Total net deferred tax assets |
$ |
301,852 |
|
|
$ |
297,466 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The reconciliation of the United States federal statutory income tax rate to KLA-Tencor’s effective income tax rate is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year ended June 30, |
|
2013 |
|
2012 |
|
2011 |
Federal statutory rate |
35.0 |
% |
|
35.0 |
% |
|
35.0 |
% |
State income taxes, net of federal benefit |
0.3 |
% |
|
0.4 |
% |
|
2.5 |
% |
Effect of foreign operations taxed at various rates |
(9.6 |
)% |
|
(9.9 |
)% |
|
(9.0 |
)% |
Research and development tax credit |
(3.1 |
)% |
|
(1.1 |
)% |
|
(1.2 |
)% |
Net change in tax reserves |
1.7 |
% |
|
(2.8 |
)% |
|
2.1 |
% |
Domestic manufacturing benefit |
(1.6 |
)% |
|
(0.7 |
)% |
|
(1.9 |
)% |
Effect of stock-based compensation |
(0.3 |
)% |
|
1.3 |
% |
|
1.4 |
% |
Other |
(1.0 |
)% |
|
0.2 |
% |
|
(0.5 |
)% |
Effective income tax rate |
21.4 |
% |
|
22.4 |
% |
|
28.4 |
% |
|
| Summary of Income Tax Contingencies |
A reconciliation of gross unrecognized tax benefits is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended June 30, |
(In thousands) |
2013 |
|
2012 |
|
2011 |
Unrecognized tax benefits at the beginning of the period |
$ |
50,839 |
|
|
$ |
78,337 |
|
|
$ |
53,492 |
|
Increases for tax positions taken in prior years |
2,701 |
|
|
4,172 |
|
|
5,228 |
|
Decreases for tax positions taken in prior years |
(905 |
) |
|
(1,002 |
) |
|
— |
|
Increases for tax positions taken in current year |
12,709 |
|
|
15,663 |
|
|
32,152 |
|
Decreases for settlements with taxing authorities |
(3,907 |
) |
|
(43,464 |
) |
|
(11,786 |
) |
Decreases for lapsing of statutes of limitations |
(1,943 |
) |
|
(2,867 |
) |
|
(749 |
) |
Unrecognized tax benefits at the end of the period |
$ |
59,494 |
|
|
$ |
50,839 |
|
|
$ |
78,337 |
|
|