FINANCIAL STATEMENT COMPONENTS

3 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheets


	As of		As of
(In thousands)	September 30, 2020		June 30, 2020
Accounts receivable, net:
Accounts receivable, gross	$	1,046,329	$	1,119,235
Allowance for credit losses	(17,446)		(11,822)
	$	1,028,883	$	1,107,413
Inventories:
Raw materials	$	541,846	$	478,594
Customer service parts	316,795		338,608
Work-in-process	368,270		334,965
Finished goods	167,314		158,818
	$	1,394,225	$	1,310,985
Other current assets:
Contract assets	$	97,751	$	99,876
Prepaid expenses	88,128		74,955
Deferred costs of revenue	57,488		77,219
Prepaid income and other taxes	24,767		56,809
Other current assets	20,004		15,816
	$	288,138	$	324,675
Land, property and equipment, net:
Land	$	67,864	$	67,858
Buildings and leasehold improvements	433,525		405,238
Machinery and equipment	695,577		677,627
Office furniture and fixtures	31,121		29,964
Construction-in-process	109,211		93,736
	1,337,298		1,274,423
Less: accumulated depreciation	(775,446)		(754,599)
	$	561,852	$	519,824
Other non-current assets:
Executive Deferred Savings Plan(1)	$	223,986	$	213,487

Operating lease right of use assets	98,754		100,790
Other non-current assets	48,846		48,702
	$	371,586	$	362,979
Other current liabilities:
Compensation and benefits	$	346,266	$	251,379
Executive Deferred Savings Plan	225,542		215,167
Customer credits and advances	128,484		114,896
Other accrued expenses	159,713		183,435

Income taxes payable	75,323		35,640
Interest payable	34,801		36,265
Operating lease liabilities	29,418		28,994
	$	999,547	$	865,776
Other non-current liabilities:
Income taxes payable	$	357,074	$	383,447
Pension liabilities	81,612		78,911
Operating lease liabilities	69,431		70,885
Other non-current liabilities	138,574		139,041
	$	646,691	$	672,284

________________

(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 $13.2 million and $1.9 million during the three months ended September 30, 2020 and 2019, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in selling, general and administrative expense was $13.3 million and $2.3 million during the three months ended September 30, 2020 and 2019, 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, 2020.

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 September 30, 2020	$	(38,920)	$	2,857	$	(24,014)	$	(19,369)	$	(79,446)

Balance as of June 30, 2020	$	(43,957)	$	3,683	$	(23,250)	$	(16,250)	$	(79,774)

The effects on net income (loss) of amounts reclassified from accumulated OCI to the Condensed Consolidated Statements of Operations for the indicated period were as follows (in thousands):


		Three Months Ended
	Location in the Condensed Consolidated	September 30,
Accumulated OCI Components	Statements of Operations	2020		2019
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts	Revenues	$	(217)	$	373
	Costs of revenues and operating expenses	550		(1,801)
	Interest expense	(279)		(99)

	Net gains (losses) reclassified from accumulated OCI	$	54	$	(1,527)
Unrealized gains (losses) on available-for-sale securities	Other expense (income), net	$	(101)	$	(4)

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 September 30, 2020 and 2019 were $0.3 million and $0.2 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, 2020.