| FINANCIAL STATEMENT COMPONENTS |
FINANCIAL STATEMENT COMPONENTS Condensed Consolidated Balance Sheets
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As of |
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As of |
| (In thousands) |
March 31, 2024 |
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June 30, 2023 |
| Accounts receivable, net: |
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| Accounts receivable, gross |
$ |
1,658,872 |
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$ |
1,786,993 |
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| Allowance for credit losses |
(33,615) |
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(33,632) |
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$ |
1,625,257 |
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$ |
1,753,361 |
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| Inventories: |
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| Customer service parts |
$ |
594,953 |
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$ |
524,096 |
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| Raw materials |
1,513,119 |
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1,559,202 |
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| Work-in-process |
674,193 |
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578,864 |
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| Finished goods |
224,788 |
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214,622 |
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$ |
3,007,053 |
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$ |
2,876,784 |
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| Other current assets: |
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| Deferred costs of revenues |
$ |
242,520 |
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$ |
133,067 |
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| Prepaid expenses |
115,377 |
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121,204 |
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| Contract assets |
87,621 |
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117,137 |
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| Prepaid income and other taxes |
76,900 |
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64,901 |
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| Other current assets |
79,052 |
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62,419 |
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$ |
601,470 |
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$ |
498,728 |
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| Land, property and equipment, net: |
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| Land |
$ |
78,260 |
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$ |
72,287 |
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| Buildings and leasehold improvements |
923,347 |
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825,975 |
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| Machinery and equipment |
1,095,517 |
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1,016,713 |
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| Office furniture and fixtures |
64,142 |
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58,036 |
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| Construction-in-process |
186,090 |
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168,817 |
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2,347,356 |
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2,141,828 |
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| Less: accumulated depreciation |
(1,241,078) |
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(1,109,987) |
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$ |
1,106,278 |
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$ |
1,031,841 |
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| Other non-current assets: |
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Executive Deferred Savings Plan(1)
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$ |
297,915 |
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$ |
256,846 |
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| Operating lease right of use assets |
241,163 |
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208,706 |
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| Other non-current assets |
161,143 |
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171,910 |
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$ |
700,221 |
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$ |
637,462 |
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| Other current liabilities: |
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| Customer deposits |
$ |
553,703 |
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$ |
769,000 |
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| Compensation and benefits |
447,294 |
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370,536 |
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Executive Deferred Savings Plan(1)
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300,180 |
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258,223 |
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| Income taxes payable |
84,355 |
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383,012 |
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| Interest payable |
76,226 |
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105,270 |
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| Operating lease liabilities |
36,396 |
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34,042 |
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| Other liabilities and accrued expenses |
410,373 |
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383,407 |
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$ |
1,908,527 |
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$ |
2,303,490 |
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| Other non-current liabilities: |
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| Income taxes payable |
$ |
288,162 |
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$ |
322,113 |
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| Customer deposits |
123,315 |
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156,874 |
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| Operating lease liabilities |
158,376 |
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138,354 |
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| Pension liabilities |
58,198 |
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63,672 |
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| Other non-current liabilities |
145,155 |
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132,045 |
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$ |
773,206 |
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$ |
813,058 |
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________________
(1)We have a non-qualified deferred compensation plan (known as the “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 (“SG&A”) expense was $17.4 million and $13.1 million in the three months ended March 31, 2024 and 2023, respectively, and was $33.9 million and $14.7 million during the nine months ended March 31, 2024 and 2023, respectively. The amount of net gains associated with changes in the EDSP assets included in SG&A expense was $17.1 million and $13.1 million in the three months ended March 31, 2024 and 2023, respectively, and was $33.3 million and $14.7 million during the nine months ended March 31, 2024 and 2023, respectively. For additional details, refer to Note 1 “Description of Business and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated Other Comprehensive Income (Loss) (“AOCI”) 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 Derivatives |
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Unrealized Gains (Losses) on Defined Benefit Plans |
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Total |
| Balance as of March 31, 2024 |
$ |
(70,421) |
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$ |
(3,255) |
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$ |
50,356 |
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$ |
(18,200) |
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$ |
(41,520) |
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| Balance as of June 30, 2023 |
$ |
(64,627) |
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$ |
(12,797) |
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$ |
59,944 |
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$ |
(18,861) |
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$ |
(36,341) |
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The effects on net income of amounts reclassified from AOCI to the Condensed Consolidated Statements of Operations for the indicated periods were as follows (in thousands; amounts in parentheses indicate debits or reductions to earnings):
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| AOCI Components |
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Three Months Ended |
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Nine Months Ended |
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Location in the Condensed Consolidated Statement of Operations |
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March 31, |
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March 31, |
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2024 |
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2023 |
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2024 |
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2023 |
| Unrealized gains on cash flow hedges from foreign exchange and interest rate contracts |
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Revenues |
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$ |
4,439 |
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$ |
1,421 |
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$ |
15,871 |
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$ |
31,954 |
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Costs of revenues and operating expenses |
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2,221 |
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|
467 |
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4,976 |
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(8,804) |
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Interest expense |
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944 |
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936 |
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2,818 |
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2,810 |
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Net gains reclassified from AOCI |
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$ |
7,604 |
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$ |
2,824 |
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$ |
23,665 |
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$ |
25,960 |
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| Unrealized gains (losses) on available-for-sale securities |
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Other expense (income), net |
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$ |
54 |
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$ |
(250) |
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$ |
(19) |
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$ |
(831) |
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The amount reclassified out of AOCI related to our defined benefit pension plans that was recognized as a component of net periodic cost for the three months ended March 31, 2024 and 2023 was $0.3 million and $0.4 million, respectively, and for the nine months ended March 31, 2024 and 2023 was $0.8 million and $1.2 million, respectively. For additional details, refer to Note 13 “Employee Benefit Plans” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.
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