| Financial Statement Components |
FINANCIAL STATEMENT COMPONENTS
Balance Sheet Components
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(In thousands) |
As of
December 31, 2014 |
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As of
June 30, 2014 |
Accounts receivable, net: |
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Accounts receivable, gross |
$ |
653,806 |
|
|
$ |
514,690 |
|
Allowance for doubtful accounts |
(21,717 |
) |
|
(21,827 |
) |
|
$ |
632,089 |
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$ |
492,863 |
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Inventories: |
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Customer service parts |
$ |
213,843 |
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$ |
203,194 |
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Raw materials |
253,242 |
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|
221,612 |
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Work-in-process |
142,243 |
|
|
171,249 |
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Finished goods |
53,471 |
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|
60,402 |
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|
$ |
662,799 |
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|
$ |
656,457 |
|
Other current assets: |
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Prepaid expenses |
$ |
41,963 |
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|
$ |
35,478 |
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Income tax related receivables |
66,745 |
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|
27,452 |
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Other current assets |
17,427 |
|
|
6,267 |
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|
$ |
126,135 |
|
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$ |
69,197 |
|
Land, property and equipment, net: |
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Land |
$ |
41,831 |
|
|
$ |
41,848 |
|
Buildings and leasehold improvements |
312,141 |
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|
302,537 |
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Machinery and equipment |
499,197 |
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|
491,167 |
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Office furniture and fixtures |
21,139 |
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|
20,945 |
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Construction-in-process |
4,646 |
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|
8,945 |
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|
878,954 |
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|
865,442 |
|
Less: accumulated depreciation and amortization |
(555,601 |
) |
|
(535,179 |
) |
|
$ |
323,353 |
|
|
$ |
330,263 |
|
Other non-current assets: |
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Executive Deferred Savings Plan(1)
|
$ |
166,305 |
|
|
$ |
159,996 |
|
Deferred tax assets – long-term |
64,341 |
|
|
75,138 |
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Other non-current assets |
32,295 |
|
|
23,385 |
|
|
$ |
262,941 |
|
|
$ |
258,519 |
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Other current liabilities: |
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Warranty |
$ |
34,410 |
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|
$ |
37,746 |
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Executive Deferred Savings Plan(1)
|
167,544 |
|
|
160,527 |
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Compensation and benefits |
130,533 |
|
|
203,990 |
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Income taxes payable |
13,587 |
|
|
15,283 |
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Interest payable |
19,179 |
|
|
8,769 |
|
Customer credits and advances |
92,972 |
|
|
79,373 |
|
Other accrued expenses |
105,965 |
|
|
79,402 |
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|
$ |
564,190 |
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|
$ |
585,090 |
|
Other non-current liabilities: |
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Pension liabilities |
$ |
54,480 |
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|
$ |
59,908 |
|
Income taxes payable |
64,327 |
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|
59,575 |
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Other non-current liabilities |
60,609 |
|
|
48,805 |
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$ |
179,416 |
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|
$ |
168,288 |
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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 December 31, 2014 and 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 Condensed 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 December 31, 2014 |
$ |
(28,367 |
) |
|
$ |
(667 |
) |
|
$ |
7,756 |
|
|
$ |
(14,475 |
) |
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$ |
(35,753 |
) |
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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 Condensed Consolidated Statement of Operations for the indicated period were as follows (in thousands):
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Location in the Condensed Consolidated |
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Three months ended
December 31, |
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Six months ended
December 31, |
Accumulated OCI Components |
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Statements of Operations |
|
2014 |
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2013 |
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2014 |
|
2013 |
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts |
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Revenues |
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$ |
1,933 |
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|
$ |
(128 |
) |
|
$ |
2,202 |
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$ |
2,322 |
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Costs of revenues |
|
(475 |
) |
|
150 |
|
|
(516 |
) |
|
216 |
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Interest expense |
|
126 |
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|
— |
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|
126 |
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— |
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Net gains reclassified from accumulated OCI |
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$ |
1,584 |
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|
$ |
22 |
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$ |
1,812 |
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$ |
2,538 |
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Unrealized gains on available-for-sale securities |
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Interest income and other, net |
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$ |
281 |
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$ |
1,213 |
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$ |
1,916 |
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$ |
1,447 |
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The amounts reclassified out of accumulated OCI related to the Company’s defined pension plans, which were recognized as a component of net periodic cost for the three and six months ended December 31, 2014 were $0.7 million and $1.5 million, respectively. The amounts reclassified out of accumulated OCI related to the Company’s defined pension plans, which were recognized as a component of net periodic cost for the three and six months ended December 31, 2013, were $0.3 million and $0.6 million, respectively. For additional details, refer to Note 11, “Employee Benefit Plans” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014.
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