Annual report pursuant to Section 13 and 15(d)

Financial Statement Components

v2.4.0.8
Financial Statement Components
12 Months Ended
Jun. 30, 2014
Financial Statement Components [Abstract]  
Financial Statement Components
FINANCIAL STATEMENT COMPONENTS
Consolidated Balance Sheets
 
As of June 30,
(In thousands)
2014
 
2013
Accounts receivable, net:
 
 
 
Accounts receivable, gross
$
514,690

 
$
546,745

Allowance for doubtful accounts
(21,827
)
 
(22,135
)
 
$
492,863

 
$
524,610

Inventories:
 
 
 
Customer service parts
$
203,194

 
$
180,749

Raw materials
221,612

 
229,233

Work-in-process
171,249

 
176,704

Finished goods
60,402

 
47,762

 
$
656,457

 
$
634,448

Other current assets:
 
 
 
Prepaid expenses
$
35,478

 
$
31,997

Income tax related receivables
27,452

 
25,825

Other current assets
6,267

 
17,217

 
$
69,197

 
$
75,039

Land, property and equipment, net:
 
 
 
Land
$
41,848

 
$
41,850

Buildings and leasehold improvements
302,537

 
272,920

Machinery and equipment
491,167

 
476,747

Office furniture and fixtures
20,945

 
20,701

Construction-in-process
8,945

 
16,604

 
865,442

 
828,822

Less: accumulated depreciation and amortization
(535,179
)
 
(523,541
)
 
$
330,263

 
$
305,281

Other non-current assets:
 
 
 
Executive Deferred Savings Plan(1)
$
159,996

 
$
136,461

Deferred tax assets—long-term
75,138

 
114,833

Other non-current assets
23,385

 
18,129

 
$
258,519

 
$
269,423

Other current liabilities:
 
 
 
Warranty
$
37,746

 
$
42,603

Executive Deferred Savings Plan(1)
160,527

 
137,849

Compensation and benefits
203,990

 
195,793

Income taxes payable
15,283

 
11,076

Interest payable
8,769

 
8,769

Other accrued expenses
158,775

 
130,959

 
$
585,090

 
$
527,049

 __________________ 
(1)
KLA-Tencor has a non-qualified deferred compensation plan whereby 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 KLA-Tencor. Distributions from the plan commence following a participant’s retirement or termination of employment or on a specified date allowed per the 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. As of June 30, 2014, the Company had a deferred compensation plan related asset and liability included as a component of other non-current assets and other current liabilities on the Consolidated Balance Sheets. The plan assets are classified as trading securities.
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 June 30, 2013
$
(22,467
)
 
$
(602
)
 
$
1,594

 
$
(15,171
)
 
$
(36,646
)
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2014
$
(17,271
)
 
$
2,800

 
$
(12
)
 
$
(15,788
)
 
$
(30,271
)

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):
 
 
Location in the Consolidated Statements of Operations
 
Twelve months ended
June 30
 
Twelve months ended
June 30
Accumulated OCI Components
 
 
2014
 
2013
Gains (losses) on cash flow hedges from foreign exchange contracts
 
Revenues
 
$
3,851

 
$
2,124

 
 
Costs of revenues
 
294

 
(641
)
 
 
Net gains reclassified from accumulated OCI
 
$
4,145

 
$
1,483

 
 
 
 
 
 
 
Unrealized gains on available-for-sale securities
 
Interest income and other, net
 
$
2,084

 
$
2,287


The amounts reclassified out of accumulated OCI related to the Company's defined pension plans were recognized as a component of net periodic cost for the fiscal years ended June 30, 2014 and 2013 were $1.3 million and $1.1 million, respectively. For additional details refer to Note 11, “Employee Benefit Plans.”
Consolidated Statements of Operations
 
Year ended June 30,
(In thousands)
2014
 
2013
 
2012
Interest income and other, net:
 
 
 
 
 
Interest income
$
13,555

 
$
14,976

 
$
15,321

Foreign exchange losses, net
(514
)
 
(1,002
)
 
(2,864
)
Net realized gains on sale of investments
1,236

 
2,287

 
637

Other
1,926

 
(1,149
)
 
(1,128
)
 
$
16,203

 
$
15,112

 
$
11,966