| FINANCIAL STATEMENT COMPONENTS |
NOTE 4 – FINANCIAL STATEMENT COMPONENTS
Condensed Consolidated Balance Sheets
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(In thousands) |
As of
December 31, 2019 |
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As of
June 30, 2019 |
Accounts receivable, net: |
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|
Accounts receivable, gross |
$ |
1,202,925 |
|
|
$ |
1,002,114 |
|
Allowance for doubtful accounts |
(11,890 |
) |
|
(12,001 |
) |
|
$ |
1,191,035 |
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|
$ |
990,113 |
|
Inventories: |
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|
Raw materials |
$ |
450,956 |
|
|
$ |
444,627 |
|
Customer service parts |
337,118 |
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|
328,515 |
|
Work-in-process |
319,590 |
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|
285,191 |
|
Finished goods |
143,736 |
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|
204,167 |
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|
$ |
1,251,400 |
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|
$ |
1,262,500 |
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Other current assets: |
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Contract assets |
$ |
85,837 |
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|
$ |
94,015 |
|
Prepaid expenses |
73,322 |
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|
88,387 |
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Deferred costs of revenue |
55,083 |
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|
70,721 |
|
Prepaid income and other taxes |
25,102 |
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|
51,889 |
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Other current assets |
18,142 |
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|
18,065 |
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|
$ |
257,486 |
|
|
$ |
323,077 |
|
Land, property and equipment, net: |
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Land |
$ |
67,874 |
|
|
$ |
67,883 |
|
Buildings and leasehold improvements |
416,463 |
|
|
402,678 |
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Machinery and equipment |
699,175 |
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|
669,316 |
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Office furniture and fixtures |
34,899 |
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|
28,282 |
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Construction-in-process |
63,566 |
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|
26,029 |
|
|
1,281,977 |
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|
1,194,188 |
|
Less: accumulated depreciation |
(791,997 |
) |
|
(745,389 |
) |
|
$ |
489,980 |
|
|
$ |
448,799 |
|
Other non-current assets: |
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|
|
Executive Deferred Savings Plan(1)
|
$ |
216,612 |
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|
$ |
207,581 |
|
Operating lease right of use assets |
103,666 |
|
|
— |
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Other non-current assets |
57,533 |
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|
58,392 |
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|
$ |
377,811 |
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|
$ |
265,973 |
|
Other current liabilities: |
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Compensation and benefits |
$ |
326,407 |
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|
$ |
226,462 |
|
Executive Deferred Savings Plan |
217,387 |
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|
208,926 |
|
Customer credits and advances |
164,155 |
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|
133,677 |
|
Other accrued expenses |
160,522 |
|
|
202,647 |
|
Income taxes payable |
80,776 |
|
|
23,350 |
|
Interest payable |
31,026 |
|
|
31,992 |
|
Operating lease liabilities |
29,937 |
|
|
— |
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|
$ |
1,010,210 |
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|
$ |
827,054 |
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Other non-current liabilities: |
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Income taxes payable |
$ |
368,751 |
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|
$ |
392,266 |
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Pension liabilities |
79,895 |
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|
79,622 |
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Operating lease liabilities |
72,620 |
|
|
— |
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Other non-current liabilities |
142,466 |
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|
116,009 |
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|
$ |
663,732 |
|
|
$ |
587,897 |
|
________________
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(1) |
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 $12.0 million and $(19.8) million during the three months ended December 31, 2019 and 2018, respectively and was $13.9 million and $(12.3) million during the six months ended December 31, 2019 and 2018, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in selling, general and administrative expense was $11.9 million and $(19.4) million during the three months ended December 31, 2019 and 2018, respectively and was $14.2 million and $(12.0) million during the six months ended December 31, 2019 and 2018, 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, 2019.
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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, 2019 |
$ |
(43,489 |
) |
|
$ |
661 |
|
|
$ |
(5,961 |
) |
|
$ |
(17,969 |
) |
|
$ |
(66,758 |
) |
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Balance as of June 30, 2019 |
$ |
(44,041 |
) |
|
$ |
(1,616 |
) |
|
$ |
(8,725 |
) |
|
$ |
(18,647 |
) |
|
$ |
(73,029 |
) |
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 |
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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 |
|
2019 |
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2018 |
|
2019 |
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2018 |
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts(1)
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Revenues |
|
$ |
(8 |
) |
|
$ |
1,705 |
|
|
$ |
365 |
|
|
$ |
2,688 |
|
|
|
Costs of revenues and operating expenses |
|
(17 |
) |
|
(158 |
) |
|
(1,818 |
) |
|
(292 |
) |
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|
Interest expense |
|
(100 |
) |
|
189 |
|
|
(199 |
) |
|
377 |
|
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Net gains (losses) reclassified from accumulated OCI |
|
$ |
(125 |
) |
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$ |
1,736 |
|
|
$ |
(1,652 |
) |
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$ |
2,773 |
|
Unrealized gains (losses) on available-for-sale securities |
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Other expense (income), net |
|
$ |
(82 |
) |
|
$ |
(469 |
) |
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$ |
(86 |
) |
|
$ |
(950 |
) |
__________________
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(1) |
Reflects the new accounting guidance for hedge accounting, which was adopted in the second quarter of fiscal year 2019. For additional details, refer to Note 16, “Derivative Instruments and Hedging Activities” of the Condensed Consolidated Financial Statements. |
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 months ended December 31, 2019 and 2018 were $0.2 million and $0.2 million, respectively and for the six months ended December 31, 2019 and 2018 were $0.5 million and $0.4 million, respectively. For additional details, refer to Note 12, “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, 2019.
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