| FINANCIAL STATEMENT COMPONENTS |
NOTE 4 – FINANCIAL STATEMENT COMPONENTS
Consolidated Balance Sheets
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(In thousands) |
As of
December 31, 2018 |
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As of
June 30, 2018 |
Accounts receivable, net: |
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|
|
Accounts receivable, gross |
$ |
669,650 |
|
|
$ |
663,317 |
|
Allowance for doubtful accounts |
(11,570 |
) |
|
(11,639 |
) |
|
$ |
658,080 |
|
|
$ |
651,678 |
|
Inventories: |
|
|
|
Customer service parts |
$ |
275,045 |
|
|
$ |
253,639 |
|
Raw materials |
340,253 |
|
|
331,065 |
|
Work-in-process |
305,864 |
|
|
280,208 |
|
Finished goods |
84,828 |
|
|
66,933 |
|
|
$ |
1,005,990 |
|
|
$ |
931,845 |
|
Other current assets: |
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|
|
Contract assets |
$ |
23,316 |
|
|
$ |
— |
|
Deferred costs of revenue(1)
|
32,821 |
|
|
— |
|
Prepaid expenses |
48,411 |
|
|
47,088 |
|
Prepaid income and other taxes |
12,181 |
|
|
23,452 |
|
Other current assets |
10,621 |
|
|
14,619 |
|
|
$ |
127,350 |
|
|
$ |
85,159 |
|
Land, property and equipment, net: |
|
|
|
Land |
$ |
40,593 |
|
|
$ |
40,599 |
|
Buildings and leasehold improvements |
340,722 |
|
|
335,647 |
|
Machinery and equipment |
602,387 |
|
|
577,077 |
|
Office furniture and fixtures |
22,569 |
|
|
22,171 |
|
Construction-in-process |
16,360 |
|
|
9,180 |
|
|
1,022,631 |
|
|
984,674 |
|
Less: accumulated depreciation |
(716,280 |
) |
|
(698,368 |
) |
|
$ |
306,351 |
|
|
$ |
286,306 |
|
Other non-current assets: |
|
|
|
Executive Deferred Savings Plan(2)
|
$ |
181,103 |
|
|
$ |
197,213 |
|
Other non-current assets |
22,897 |
|
|
19,606 |
|
|
$ |
204,000 |
|
|
$ |
216,819 |
|
Other current liabilities: |
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|
|
Executive Deferred Savings Plan(2)
|
$ |
181,976 |
|
|
$ |
199,505 |
|
Compensation and benefits |
230,079 |
|
|
177,587 |
|
Other accrued expenses |
107,644 |
|
|
123,869 |
|
Customer credits and advances |
144,408 |
|
|
116,440 |
|
Warranty |
666 |
|
|
42,258 |
|
Income taxes payable |
33,153 |
|
|
23,287 |
|
Interest payable |
16,947 |
|
|
16,947 |
|
|
$ |
714,873 |
|
|
$ |
699,893 |
|
Other non-current liabilities: |
|
|
|
Income taxes payable |
$ |
341,745 |
|
|
$ |
371,665 |
|
Pension liabilities |
67,139 |
|
|
66,786 |
|
Other non-current liabilities |
37,395 |
|
|
32,912 |
|
|
$ |
446,279 |
|
|
$ |
471,363 |
|
________________
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|
(1) |
Deferred costs of revenue were previously included under deferred system profit prior to the adoption of ASC 606. |
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(2) |
We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense (benefit) associated with changes in the EDSP liability included in selling, general and administrative expense was $(19.8) million and $7.0 million during the three months ended December 31, 2018 and 2017, respectively and was $(12.3) million and $13.8 million during the six months ended December 31, 2018 and 2017, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in selling, general and administrative expense was $(19.4) million and $7.0 million during the three months ended December 31, 2018 and 2017, respectively and was $(12.0) million and $13.9 million the six months ended December 31, 2018 and 2017, respectively. For additional details, refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018.
|
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 |
|
Unrealized Gains (Losses) on Available-for-Sale Securities |
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Unrealized Gains (Losses) on Cash Flow Hedges |
|
Unrealized Gains (Losses) on Defined Benefit Plans |
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Total |
Balance as of December 31, 2018 |
$ |
(43,041 |
) |
|
$ |
(6,736 |
) |
|
$ |
(4,402 |
) |
|
$ |
(16,268 |
) |
|
$ |
(70,447 |
) |
|
|
|
|
|
|
|
|
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|
Balance as of June 30, 2018 |
$ |
(29,974 |
) |
|
$ |
(11,032 |
) |
|
$ |
1,932 |
|
|
$ |
(14,859 |
) |
|
$ |
(53,933 |
) |
The effects on net income (loss) 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 |
|
Three months ended
December 31, |
|
Six months ended
December 31, |
Accumulated OCI Components |
|
Statements of Operations |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts(1)
|
|
Revenues |
|
$ |
1,705 |
|
|
$ |
397 |
|
|
$ |
2,688 |
|
|
$ |
1,365 |
|
|
|
Costs of revenues |
|
(158 |
) |
|
377 |
|
|
(292 |
) |
|
1,338 |
|
|
|
Interest expense |
|
189 |
|
|
189 |
|
|
377 |
|
|
378 |
|
|
|
Net gains (losses) reclassified from accumulated OCI |
|
$ |
1,736 |
|
|
$ |
963 |
|
|
$ |
2,773 |
|
|
$ |
3,081 |
|
Unrealized gains (losses) on available-for-sale securities |
|
Other expense (income), net |
|
$ |
(469 |
) |
|
$ |
(69 |
) |
|
$ |
(950 |
) |
|
$ |
(63 |
) |
__________________
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(1) |
Reflects the adoption of the new accounting guidance for hedge accounting in the second quarter of fiscal year 2019. For additional details, refer to Note 15, “Derivative Instruments and Hedging Activities.” |
The amounts reclassified out of accumulated OCI related to our defined benefit pension plans, which were recognized as a component of net periodic cost for the three and six months ended December 31, 2018 were $0.2 million and $0.4 million, respectively. The amounts reclassified out of accumulated OCI related to our defined benefit pension plans, which were recognized as a component of net periodic cost for the three and six months ended December 31, 2017 were $0.4 million and $0.8 million, respectively. For additional details, refer to Note 11, “Employee Benefit Plans” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018.
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