| Financial Statement Components |
FINANCIAL STATEMENT COMPONENTS
Consolidated Balance Sheets
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As of June 30, |
(In thousands) |
2014 |
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2013 |
Accounts receivable, net: |
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Accounts receivable, gross |
$ |
514,690 |
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$ |
546,745 |
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Allowance for doubtful accounts |
(21,827 |
) |
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(22,135 |
) |
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$ |
492,863 |
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$ |
524,610 |
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Inventories: |
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Customer service parts |
$ |
203,194 |
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$ |
180,749 |
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Raw materials |
221,612 |
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|
229,233 |
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Work-in-process |
171,249 |
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|
176,704 |
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Finished goods |
60,402 |
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|
47,762 |
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$ |
656,457 |
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$ |
634,448 |
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Other current assets: |
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Prepaid expenses |
$ |
35,478 |
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$ |
31,997 |
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Income tax related receivables |
27,452 |
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|
25,825 |
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Other current assets |
6,267 |
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|
17,217 |
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$ |
69,197 |
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$ |
75,039 |
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Land, property and equipment, net: |
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Land |
$ |
41,848 |
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$ |
41,850 |
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Buildings and leasehold improvements |
302,537 |
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|
272,920 |
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Machinery and equipment |
491,167 |
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476,747 |
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Office furniture and fixtures |
20,945 |
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20,701 |
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Construction-in-process |
8,945 |
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16,604 |
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865,442 |
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828,822 |
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Less: accumulated depreciation and amortization |
(535,179 |
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(523,541 |
) |
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$ |
330,263 |
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$ |
305,281 |
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Other non-current assets: |
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Executive Deferred Savings Plan(1)
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$ |
159,996 |
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$ |
136,461 |
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Deferred tax assets—long-term |
75,138 |
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|
114,833 |
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Other non-current assets |
23,385 |
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|
18,129 |
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$ |
258,519 |
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$ |
269,423 |
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Other current liabilities: |
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Warranty |
$ |
37,746 |
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$ |
42,603 |
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Executive Deferred Savings Plan(1)
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160,527 |
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|
137,849 |
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Compensation and benefits |
203,990 |
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|
195,793 |
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Income taxes payable |
15,283 |
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|
11,076 |
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Interest payable |
8,769 |
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|
8,769 |
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Other accrued expenses |
158,775 |
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|
130,959 |
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$ |
585,090 |
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$ |
527,049 |
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__________________
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(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.
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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, 2013 |
$ |
(22,467 |
) |
|
$ |
(602 |
) |
|
$ |
1,594 |
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|
$ |
(15,171 |
) |
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$ |
(36,646 |
) |
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Balance as of June 30, 2014 |
$ |
(17,271 |
) |
|
$ |
2,800 |
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|
$ |
(12 |
) |
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$ |
(15,788 |
) |
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$ |
(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):
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Location in the Consolidated Statements of Operations |
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Twelve months ended
June 30 |
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Twelve months ended
June 30 |
Accumulated OCI Components |
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2014 |
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2013 |
Gains (losses) on cash flow hedges from foreign exchange contracts |
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Revenues |
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$ |
3,851 |
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$ |
2,124 |
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Costs of revenues |
|
294 |
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(641 |
) |
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Net gains reclassified from accumulated OCI |
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$ |
4,145 |
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$ |
1,483 |
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Unrealized gains on available-for-sale securities |
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Interest income and other, net |
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$ |
2,084 |
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$ |
2,287 |
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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
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Year ended June 30, |
(In thousands) |
2014 |
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2013 |
|
2012 |
Interest income and other, net: |
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Interest income |
$ |
13,555 |
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$ |
14,976 |
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$ |
15,321 |
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Foreign exchange losses, net |
(514 |
) |
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(1,002 |
) |
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(2,864 |
) |
Net realized gains on sale of investments |
1,236 |
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2,287 |
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|
637 |
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Other |
1,926 |
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(1,149 |
) |
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(1,128 |
) |
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$ |
16,203 |
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$ |
15,112 |
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$ |
11,966 |
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