DEI_Document
DEI Document | 3 Months Ended | |
Sep. 30, 2013 | Oct. 11, 2013 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | KLA TENCOR CORP | |
Entity Central Index Key | 319201 | |
Entity Filer Category | Large Accelerated Filer | |
Current Fiscal Year End Date | -24 | |
Trading Symbol | klac | |
Entity Common Stock, Shares Outstanding | 166,649,418 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $904,949 | $985,390 |
Marketable securities | 2,046,926 | 1,933,491 |
Accounts receivable, net | 440,674 | 524,610 |
Inventories | 660,276 | 634,448 |
Deferred income taxes | 191,449 | 198,525 |
Other current assets | 110,464 | 75,039 |
Total current assets | 4,354,738 | 4,351,503 |
Non-current assets: | ||
Land, property and equipment, net | 319,837 | 305,281 |
Goodwill | 326,556 | 326,635 |
Purchased intangibles, net | 30,022 | 34,515 |
Other non-current assets | 252,399 | 269,423 |
Total assets | 5,283,552 | 5,287,357 |
Current liabilities: | ||
Accounts payable | 114,716 | 115,680 |
Deferred system profit | 165,931 | 157,965 |
Unearned revenue | 54,363 | 60,838 |
Other current liabilities | 500,100 | 527,049 |
Total current liabilities | 835,110 | 861,532 |
Non-current liabilities: | ||
Long-term debt | 747,511 | 747,376 |
Pension liabilities | 59,578 | 57,959 |
Income tax payable | 58,995 | 59,494 |
Unearned revenue | 54,918 | 42,228 |
Other non-current liabilities | 36,277 | 36,616 |
Total liabilities | 1,792,389 | 1,805,205 |
Commitments and contingencies (Note 11 and Note 12) | ||
Stockholders' equity: | ||
Common stock and capital in excess of par value | 1,178,784 | 1,159,565 |
Retained earnings | 2,344,270 | 2,359,233 |
Accumulated other comprehensive income (loss) | -31,891 | -36,646 |
Total stockholders' equity | 3,491,163 | 3,482,152 |
Total liabilities and stockholders' equity | $5,283,552 | $5,287,357 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ||
Product | $501,740 | $574,078 |
Service | 156,597 | 146,631 |
Total revenues | 658,337 | 720,709 |
Costs and operating expenses: | ||
Costs of revenues | 277,657 | 317,225 |
Engineering, research and development | 132,273 | 119,742 |
Selling, general and administrative | 98,496 | 97,185 |
Total costs and operating expenses | 508,426 | 534,152 |
Income from operations | 149,911 | 186,557 |
Interest income and other, net | 3,615 | 3,488 |
Interest expense | 13,662 | 13,503 |
Income before income taxes | 139,864 | 176,542 |
Provision for income taxes | 28,667 | 41,175 |
Net income | $111,197 | $135,367 |
Net income per share: | ||
Basic | $0.67 | $0.81 |
Diluted | $0.66 | $0.80 |
Cash dividends declared per share | $0.45 | $0.40 |
Weighted average number of shares: | ||
Basic | 165,886 | 166,531 |
Diluted | 168,734 | 169,824 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $111,197 | $135,367 |
Currency translation adjustments: | ||
Change in currency translation adjustments | 5,110 | 6,622 |
Change in income tax benefit or expense | -1,315 | -1,677 |
Net change related to currency translation adjustments | 3,795 | 4,945 |
Cash flow hedges: | ||
Change in net unrealized gains or losses | -291 | -241 |
Reclassification adjustments for gains or losses included in net income | -2,516 | 1,092 |
Change in income tax benefit or expense | 1,005 | -303 |
Net change related to cash flow hedges | -1,802 | 548 |
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans | 199 | 157 |
Available-for-sale investments: | ||
Change in net unrealized gains or losses | 4,139 | 3,917 |
Reclassification adjustments for gains or losses included in net income | -234 | -309 |
Change in income tax benefit or expense | -1,342 | -1,226 |
Net change related to available-for-sale securities | 2,563 | 2,382 |
Other comprehensive income | 4,755 | 8,032 |
Total comprehensive income | $115,952 | $143,399 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $111,197 | $135,367 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,637 | 24,016 |
Asset impairment charges | 0 | 1,327 |
Non-cash stock-based compensation expense | 19,219 | 18,984 |
Excess tax benefit from equity awards | -18,605 | 7,026 |
Net gain on sale of marketable securities and other investments | -234 | -309 |
Changes in assets and liabilities: | ||
Decrease in accounts receivable, net | 85,771 | 166,855 |
Increase in inventories | -29,805 | -39,289 |
Decrease (increase) in other assets | -9,425 | 19,676 |
Decrease in accounts payable | -1,058 | -23,104 |
Increase (decrease) in deferred system profit | 7,966 | -5,292 |
Decrease in other liabilities | -8,415 | -45,812 |
Net cash provided by operating activities | 177,248 | 245,393 |
Cash flows from investing activities: | ||
Capital expenditures, net | -21,751 | -20,272 |
Purchase of available-for-sale securities | -348,031 | -448,149 |
Proceeds from sale of available-for-sale securities | 203,541 | 227,568 |
Proceeds from maturity of available-for-sale securities | 32,058 | 75,578 |
Purchase of trading securities | -20,851 | -11,168 |
Proceeds from sale of trading securities | 18,366 | 9,322 |
Net cash used in investing activities | -136,668 | -167,121 |
Cash flows from financing activities: | ||
Issuance of common stock | 41,047 | 23,250 |
Tax withholding payments related to vested and released restricted stock units | -48,264 | -18,961 |
Common stock repurchases | -60,504 | -68,317 |
Payment of dividends to stockholders | -74,617 | -66,629 |
Excess tax benefit from equity awards | 18,605 | 7,026 |
Net cash used in financing activities | -123,733 | -123,631 |
Effect of exchange rate changes on cash and cash equivalents | 2,712 | 4,007 |
Net decrease in cash and cash equivalents | -80,441 | -41,352 |
Cash and cash equivalents at beginning of period | 985,390 | 751,294 |
Cash and cash equivalents at end of period | 904,949 | 709,942 |
Supplemental cash flow disclosures: | ||
Income taxes paid, net | 19,052 | 27,909 |
Interest paid | 217 | 233 |
Non-cash investing activities | ||
Purchase of land, property and equipment | $1,798 | $0 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | BASIS OF PRESENTATION | |
Basis of Presentation. The condensed consolidated financial statements have been prepared by KLA-Tencor Corporation (“KLA-Tencor” or the “Company”) pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods indicated. These financial statements and notes, however, should be read in conjunction with Item 8, “Financial Statements and Supplementary Data” included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013, filed with the SEC on August 8, 2013. | ||
The condensed consolidated financial statements include the accounts of KLA-Tencor and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. | ||
The results of operations for the three months ended September 30, 2013 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year ending June 30, 2014. | ||
Certain reclassifications have been made to the prior year’s Condensed Consolidated Balance Sheet and notes to conform to the current year presentation. The reclassifications had no effect on the Condensed Consolidated Statements of Operations or Cash Flows. | ||
Management Estimates. The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in applying the Company's accounting policies that affect the reported amounts of assets and liabilities (and related disclosure of contingent assets and liabilities) at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | ||
Revenue Recognition. KLA-Tencor recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectibility is reasonably assured. The Company derives revenue from three sources—sales of systems, spare parts and services. In general, the Company recognizes revenue for systems when the system has been installed, is operating according to predetermined specifications and is accepted by the customer. When a customer delays installation for delivered products for which the Company has demonstrated a history of successful installation and acceptance, the Company recognizes revenue upon customer acceptance. Under certain circumstances, however, the Company recognizes revenue upon shipment, prior to acceptance from the customer, as follows: | ||
• | When the customer fab has previously accepted the same tool, with the same specifications, and when the Company can objectively demonstrate that the tool meets all of the required acceptance criteria. | |
• | When system sales to independent distributors have no installation requirement, contain no acceptance agreement, and 100% payment is due based upon shipment. | |
• | When the installation of the system is deemed perfunctory. | |
• | When the customer withholds acceptance due to issues unrelated to product performance, in which case revenue is recognized when the system is performing as intended and meets predetermined specifications. | |
In circumstances in which we recognize revenue prior to installation, the portion of revenue associated with installation is deferred based on estimated fair value, and that revenue is recognized upon completion of the installation. | ||
In many instances, products are sold in stand-alone arrangements. Services are sold separately through renewals of annual maintenance contracts. The Company also allows for multiple element revenue arrangements in cases where certain elements of a sales arrangement are not delivered and accepted in one reporting period. To determine the relative fair value of each element in a revenue arrangement, the Company allocates arrangement consideration based on the selling price hierarchy. For substantially all of the arrangements with multiple deliverables pertaining to products and services, the Company uses vendor-specific objective evidence (“VSOE”) or third-party evidence (“TPE”) to allocate the selling price to each deliverable. The Company determines TPE based on historical prices charged for products and services when sold on a stand-alone basis. When the Company is unable to establish relative selling price using VSOE or TPE, the Company uses estimated selling price (“ESP”) in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP could potentially be used for new or customized products. The Company regularly reviews relative selling prices and maintains internal controls over the establishment and updates of these estimates. In a multiple element revenue arrangement, the Company defers revenue recognition associated with the relative fair value of the undelivered elements until that element is delivered to the customer. To be considered a separate element, the product or service in question must represent a separate unit of accounting, which means that such product or service must fulfill the following criteria: (a) the delivered item(s) has value to the customer on a stand-alone basis; and (b) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. If the arrangement does not meet all the above criteria, the entire amount of the sales contract is deferred until all elements are accepted by the customer. | ||
Trade-in rights are occasionally granted to customers to trade in tools in connection with subsequent purchases. The Company estimates the value of the trade-in right and reduces the revenue recognized on the initial sale. This amount is recognized at the earlier of the exercise of the trade-in right or the expiration of the trade-in right. | ||
Spare parts revenue is recognized when the product has been shipped, risk of loss has passed to the customer and collection of the resulting receivable is probable. | ||
Service and maintenance contract revenue is recognized ratably over the term of the maintenance contract. Revenue from services performed in the absence of a maintenance contract, including consulting and training revenue, is recognized when the related services are performed and collectibility is reasonably assured. | ||
The Company sells stand-alone software that is subject to the software revenue recognition guidance. The Company periodically reviews selling prices to determine whether VSOE exists, and in some situations where the Company is unable to establish VSOE for undelivered elements such as post-contract service, revenue is recognized ratably over the term of the service contract. | ||
The Company also defers the fair value of non-standard warranty bundled with equipment sales as unearned revenue. Non-standard warranty includes services incremental to the standard 40-hour per week coverage for twelve months. Non-standard warranty is recognized ratably as revenue when the applicable warranty term period commences. | ||
The deferred system profit balance equals the amount of deferred system revenue that was invoiced and due on shipment, less applicable product and warranty costs. Deferred system revenue represents the value of products that have been shipped and billed to customers which have not met the Company's revenue recognition criteria. Deferred system profit does not include the profit associated with product shipments to customers in Japan, to whom title does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. | ||
Recent Accounting Pronouncements. In June 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update requiring an increase in the prominence of items reported in other comprehensive income. The amendment eliminated the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity and required that total comprehensive income, the components of net income, and the components of other comprehensive income be presented in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment became effective for the Company's interim period ended September 30, 2012. In February 2013, the FASB issued an accounting standard update on the reporting of reclassifications out of accumulated other comprehensive income of various components, which was originally deferred by the FASB in December 2011. The February 2013 update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this update requires an entity to present parenthetically (on the face of the financial statements, in the notes, or in some cases, cross-referenced to related footnote disclosures) significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. The amendment reflected in the February 2013 update became effective prospectively for the Company's interim period ended September 30, 2013. Early adoption was permitted. The amendment reflected in the February 2013 update did not have an impact on the Company's financial position, results of operations or cash flows as it is disclosure-only in nature. | ||
In December 2011, the FASB issued an accounting standard update requiring enhanced disclosure about certain financial instruments and derivative instruments that are offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirement became effective retrospectively for the Company's interim period ended September 30, 2013. The disclosure requirement did not have an impact on the Company's financial position, results of operations or cash flows as it is disclosure-only in nature. | ||
In July 2013, the FASB issued an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard update, the Company’s unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. This accounting standard update will be effective for the Company's interim period ending September 30, 2014 and applied prospectively with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | |||||||||||
The Company’s financial assets and liabilities are measured and recorded at fair value, except for equity investments in privately-held companies. These equity investments are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. The Company’s non-financial assets, such as goodwill, intangible assets, and land, property and equipment, are recorded at cost and are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. | ||||||||||||
Fair Value of Financial Instruments. KLA-Tencor has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of the Company's cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their carrying amounts due to the relatively short maturity of these items. | ||||||||||||
Fair Value Hierarchy. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: | ||||||||||||
Level 1 | Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. | |||||||||||
Level 2 | Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. | |||||||||||
Level 3 | Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | ||||||||||||
All of the Company’s financial instruments were classified within Level 1 or Level 2 of the fair value hierarchy as of September 30, 2013, because they were valued using quoted market prices, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. As of September 30, 2013, the types of instruments valued based on quoted market prices in active markets included money market funds, U.S. Treasury securities, equity securities and certain U.S. Government agency securities and sovereign securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. | ||||||||||||
As of September 30, 2013, the types of instruments valued based on other observable inputs included corporate debt securities, municipal securities and certain U.S. Government agency securities and sovereign securities. The market inputs used to value these instruments generally consist of market yields, reported trades and broker/dealer quotes. Such instruments are generally classified within Level 2 of the fair value hierarchy. | ||||||||||||
The principal market in which the Company executes its foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. The Company’s foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy. | ||||||||||||
Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis as of the date indicated below were presented on the Company’s Condensed Consolidated Balance Sheet as follows: | ||||||||||||
As of September 30, 2013 (In thousands) | Total | Quoted Prices in | Significant Other | |||||||||
Active Markets | Observable Inputs | |||||||||||
for Identical | (Level 2) | |||||||||||
Assets (Level 1) | ||||||||||||
Assets | ||||||||||||
Cash equivalents: | ||||||||||||
Corporate debt securities | $ | 27,600 | $ | — | $ | 27,600 | ||||||
Money market and other | 685,074 | 685,074 | — | |||||||||
Marketable securities: | ||||||||||||
U.S. Treasury securities | 147,236 | 147,236 | — | |||||||||
U.S. Government agency securities | 684,749 | 672,502 | 12,247 | |||||||||
Municipal securities | 104,533 | — | 104,533 | |||||||||
Corporate debt securities | 1,070,336 | — | 1,070,336 | |||||||||
Sovereign securities | 33,202 | 8,498 | 24,704 | |||||||||
Equity securities | 2,128 | 2,128 | — | |||||||||
Total cash equivalents and marketable securities(1) | 2,754,858 | 1,515,438 | 1,239,420 | |||||||||
Other current assets: | ||||||||||||
Derivative assets | 1,185 | — | 1,185 | |||||||||
Other non-current assets: | ||||||||||||
Executive Deferred Savings Plan | 147,926 | 102,112 | 45,814 | |||||||||
Total financial assets(1) | $ | 2,903,969 | $ | 1,617,550 | $ | 1,286,419 | ||||||
Liabilities | ||||||||||||
Other current liabilities: | ||||||||||||
Derivative liabilities | $ | (1,445 | ) | $ | — | $ | (1,445 | ) | ||||
Executive Deferred Savings Plan | (148,282 | ) | (102,280 | ) | (46,002 | ) | ||||||
Total financial liabilities | $ | (149,727 | ) | $ | (102,280 | ) | $ | (47,447 | ) | |||
________________ | ||||||||||||
(1) Excludes cash of $176.3 million held in operating accounts and time deposits of $20.7 million as of September 30, 2013. | ||||||||||||
Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis as of the date indicated below were presented on the Company’s Condensed Consolidated Balance Sheet as follows: | ||||||||||||
As of June 30, 2013 (In thousands) | Total | Quoted Prices in | Significant Other | |||||||||
Active Markets | Observable Inputs | |||||||||||
for Identical | (Level 2) | |||||||||||
Assets (Level 1) | ||||||||||||
Assets | ||||||||||||
Cash equivalents: | ||||||||||||
Corporate debt securities | $ | 3,800 | $ | — | $ | 3,800 | ||||||
Money market and other | 817,608 | 817,608 | — | |||||||||
Marketable securities: | ||||||||||||
U.S. Treasury securities | 93,787 | 93,787 | — | |||||||||
U.S. Government agency securities | 598,031 | 598,031 | — | |||||||||
Municipal securities | 103,455 | — | 103,455 | |||||||||
Corporate debt securities | 1,099,525 | — | 1,099,525 | |||||||||
Sovereign securities | 33,805 | 13,559 | 20,246 | |||||||||
Total cash equivalents and marketable securities(1) | 2,750,011 | 1,522,985 | 1,227,026 | |||||||||
Other current assets: | ||||||||||||
Derivative assets | 4,016 | — | 4,016 | |||||||||
Other non-current assets: | ||||||||||||
Executive Deferred Savings Plan | 136,461 | 96,180 | 40,281 | |||||||||
Total financial assets(1) | $ | 2,890,488 | $ | 1,619,165 | $ | 1,271,323 | ||||||
Liabilities | ||||||||||||
Other current liabilities: | ||||||||||||
Derivative liabilities | $ | (2,173 | ) | $ | — | $ | (2,173 | ) | ||||
Executive Deferred Savings Plan | (137,849 | ) | (97,570 | ) | (40,279 | ) | ||||||
Total financial liabilities | $ | (140,022 | ) | $ | (97,570 | ) | $ | (42,452 | ) | |||
________________ | ||||||||||||
(1) Excludes cash of $125.5 million held in operating accounts and time deposits of $43.4 million as of June 30, 2013. | ||||||||||||
There were no transfers in and out of Level 1 and Level 2 fair value measurements during the three months ended September 30, 2013. The Company did not have any assets or liabilities measured at fair value on a recurring basis within Level 3 fair value measurements as of September 30, 2013 or June 30, 2013. |
Balance_Sheet_Components
Balance Sheet Components | 3 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Balance Sheet Components [Abstract] | ||||||||||||||||||||
Balance Sheet Components | FINANCIAL STATEMENT COMPONENTS | |||||||||||||||||||
Balance Sheet Components | ||||||||||||||||||||
(In thousands) | As of | As of | ||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||
Accounts receivable, net: | ||||||||||||||||||||
Accounts receivable, gross | $ | 462,766 | $ | 546,745 | ||||||||||||||||
Allowance for doubtful accounts | (22,092 | ) | (22,135 | ) | ||||||||||||||||
$ | 440,674 | $ | 524,610 | |||||||||||||||||
Inventories: | ||||||||||||||||||||
Customer service parts | $ | 182,560 | $ | 180,749 | ||||||||||||||||
Raw materials | 254,902 | 229,233 | ||||||||||||||||||
Work-in-process | 170,104 | 176,704 | ||||||||||||||||||
Finished goods | 52,710 | 47,762 | ||||||||||||||||||
$ | 660,276 | $ | 634,448 | |||||||||||||||||
Other current assets: | ||||||||||||||||||||
Prepaid expenses | $ | 37,146 | $ | 31,997 | ||||||||||||||||
Prepaid income taxes | 57,764 | 25,825 | ||||||||||||||||||
Other current assets | 15,554 | 17,217 | ||||||||||||||||||
$ | 110,464 | $ | 75,039 | |||||||||||||||||
Land, property and equipment, net: | ||||||||||||||||||||
Land | $ | 41,834 | $ | 41,850 | ||||||||||||||||
Buildings and leasehold improvements | 276,893 | 272,920 | ||||||||||||||||||
Machinery and equipment | 487,874 | 476,747 | ||||||||||||||||||
Office furniture and fixtures | 20,837 | 20,701 | ||||||||||||||||||
Construction-in-process | 19,324 | 16,604 | ||||||||||||||||||
846,762 | 828,822 | |||||||||||||||||||
Less: accumulated depreciation and amortization | (526,925 | ) | (523,541 | ) | ||||||||||||||||
$ | 319,837 | $ | 305,281 | |||||||||||||||||
Other non-current assets: | ||||||||||||||||||||
Executive Deferred Savings Plan(1) | $ | 147,926 | $ | 136,461 | ||||||||||||||||
Deferred tax assets – long-term | 87,573 | 114,833 | ||||||||||||||||||
Other | 16,900 | 18,129 | ||||||||||||||||||
$ | 252,399 | $ | 269,423 | |||||||||||||||||
Other current liabilities: | ||||||||||||||||||||
Warranty | $ | 37,314 | $ | 42,603 | ||||||||||||||||
Executive Deferred Savings Plan(1) | 148,282 | 137,849 | ||||||||||||||||||
Compensation and benefits | 156,418 | 195,793 | ||||||||||||||||||
Income taxes payable | 14,141 | 11,076 | ||||||||||||||||||
Interest payable | 21,706 | 8,769 | ||||||||||||||||||
Other accrued expenses | 122,239 | 130,959 | ||||||||||||||||||
$ | 500,100 | $ | 527,049 | |||||||||||||||||
________________ | ||||||||||||||||||||
-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 the quarter following a participant’s retirement or termination of employment, 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 September 30, 2013, 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 Sheet. | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss) (“AOCI”) as of the dates indicated below were as follows: | ||||||||||||||||||||
(In thousands) | Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Defined Benefit Plans | Total | |||||||||||||||
Balance as of June 30, 2013 | $ | (22,467 | ) | $ | (602 | ) | $ | 1,594 | $ | (15,171 | ) | $ | (36,646 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 5,110 | 4,139 | (291 | ) | 313 | 9,271 | ||||||||||||||
Amounts reclassified from AOCI | — | (234 | ) | (2,516 | ) | — | (2,750 | ) | ||||||||||||
Taxes (benefits) | (1,315 | ) | (1,342 | ) | 1,005 | (114 | ) | (1,766 | ) | |||||||||||
Other comprehensive income (loss) | 3,795 | 2,563 | (1,802 | ) | 199 | 4,755 | ||||||||||||||
Balance as of September 30, 2013 | $ | (18,672 | ) | $ | 1,961 | $ | (208 | ) | $ | (14,972 | ) | $ | (31,891 | ) | ||||||
The effects on net income of amounts reclassified from AOCI for the three months ended September 30, 2013 were as follows (in thousands): | ||||||||||||||||||||
AOCI Components | Location | Amounts Reclassified from AOCI to the Consolidated Statement of Operations | ||||||||||||||||||
Gains on cash flow hedges from foreign exchange contracts | Revenues | $ | 2,450 | |||||||||||||||||
Costs of revenues | 66 | |||||||||||||||||||
Total before tax | 2,516 | |||||||||||||||||||
Unrealized gains on available-for-sale investments | Interest income and other, net | 234 | ||||||||||||||||||
Total amount reclassified from AOCI | $ | 2,750 | ||||||||||||||||||
Marketable_Securities
Marketable Securities | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
Marketable Securities | MARKETABLE SECURITIES | |||||||||||||||
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows: | ||||||||||||||||
As of September 30, 2013 (In thousands) | Amortized | Gross | Gross | Fair | ||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
U.S. Treasury securities | $ | 147,198 | $ | 100 | $ | (62 | ) | $ | 147,236 | |||||||
U.S. Government agency securities | 684,400 | 754 | (405 | ) | 684,749 | |||||||||||
Municipal securities | 104,743 | 60 | (270 | ) | 104,533 | |||||||||||
Corporate debt securities | 1,095,912 | 2,919 | (895 | ) | 1,097,936 | |||||||||||
Money market and other | 685,074 | — | — | 685,074 | ||||||||||||
Sovereign securities | 33,198 | 18 | (14 | ) | 33,202 | |||||||||||
Equity securities | 1,360 | 768 | — | 2,128 | ||||||||||||
Subtotal | 2,751,885 | 4,619 | (1,646 | ) | 2,754,858 | |||||||||||
Add: Time deposits(1) | 20,713 | — | — | 20,713 | ||||||||||||
Less: Cash equivalents | 728,645 | — | — | 728,645 | ||||||||||||
Marketable securities | $ | 2,043,953 | $ | 4,619 | $ | (1,646 | ) | $ | 2,046,926 | |||||||
As of June 30, 2013 (In thousands) | Amortized | Gross | Gross | Fair | ||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
U.S. Treasury securities | $ | 93,940 | $ | 53 | $ | (206 | ) | $ | 93,787 | |||||||
U.S. Government agency securities | 598,471 | 569 | (1,009 | ) | 598,031 | |||||||||||
Municipal securities | 103,686 | 71 | (302 | ) | 103,455 | |||||||||||
Corporate debt securities | 1,103,438 | 2,353 | (2,466 | ) | 1,103,325 | |||||||||||
Money market and other | 817,608 | — | — | 817,608 | ||||||||||||
Sovereign securities | 33,799 | 25 | (19 | ) | 33,805 | |||||||||||
Subtotal | 2,750,942 | 3,071 | (4,002 | ) | 2,750,011 | |||||||||||
Add: Time deposits(1) | 43,413 | — | — | 43,413 | ||||||||||||
Less: Cash equivalents | 859,933 | — | — | 859,933 | ||||||||||||
Marketable securities | $ | 1,934,422 | $ | 3,071 | $ | (4,002 | ) | $ | 1,933,491 | |||||||
________________ | ||||||||||||||||
-1 | Time deposits excluded from fair value measurements. | |||||||||||||||
KLA-Tencor’s investment portfolio consists of both corporate and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. All unrealized losses are due to changes in market interest rates, bond yields and/or credit ratings. The Company has the ability to realize the full value of all of these investments upon maturity. The following table summarizes the fair value and gross unrealized losses of the Company’s investments that were in an unrealized loss position as of the date indicated below: | ||||||||||||||||
As of September 30, 2013 (In thousands) | Fair Value | Gross | ||||||||||||||
Unrealized | ||||||||||||||||
Losses(1) | ||||||||||||||||
U.S. Treasury securities | $ | 30,627 | $ | (62 | ) | |||||||||||
U.S. Government agency securities | 248,191 | (405 | ) | |||||||||||||
Municipal securities | 61,180 | (270 | ) | |||||||||||||
Corporate debt securities | 367,513 | (895 | ) | |||||||||||||
Sovereign securities | 21,127 | (14 | ) | |||||||||||||
Total | $ | 728,638 | $ | (1,646 | ) | |||||||||||
__________________ | ||||||||||||||||
-1 | Of the total gross unrealized losses, the amount of total gross unrealized losses related to investments that had been in a continuous loss position for 12 months or more was immaterial. | |||||||||||||||
The contractual maturities of securities classified as available-for-sale, regardless of their classification on the Company's Condensed Consolidated Balance Sheet, as of the date indicated below were as follows: | ||||||||||||||||
As of September 30, 2013 (In thousands) | Amortized Cost | Fair Value | ||||||||||||||
Due within one year | $ | 478,400 | $ | 480,079 | ||||||||||||
Due after one year through three years | 1,565,553 | 1,566,847 | ||||||||||||||
$ | 2,043,953 | $ | 2,046,926 | |||||||||||||
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains on available-for-sale securities for the three months ended September 30, 2013 and September 30, 2012 were each $0.3 million. Realized losses on available-for-sale securities for the three months ended September 30, 2013 and September 30, 2012 were immaterial. |
Goodwill_and_Purchased_Intangi
Goodwill and Purchased Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill and Purchased Intangible Assets | GOODWILL AND PURCHASED INTANGIBLE ASSETS | |||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
The following table presents goodwill balances as of the dates indicated below: | ||||||||||||||||||||||||||
(In thousands) | As of | As of | ||||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||||||||
Gross goodwill balance | $ | 604,126 | $ | 604,205 | ||||||||||||||||||||||
Accumulated impairment losses | (277,570 | ) | (277,570 | ) | ||||||||||||||||||||||
Net goodwill balance | $ | 326,556 | $ | 326,635 | ||||||||||||||||||||||
The changes in the gross goodwill balance since June 30, 2013 resulted from foreign currency translation adjustments. | ||||||||||||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. | ||||||||||||||||||||||||||
The Company has four reporting units: Defect Inspection, Metrology, Service, and Software and Other. As of September 30, 2013, substantially all of the goodwill balance resided in the Defect Inspection reporting unit. | ||||||||||||||||||||||||||
The Company performed a qualitative assessment of the goodwill by reporting unit as of November 30, 2012 during the three months ended December 31, 2012 and concluded that it was more likely than not that the fair value of each of the reporting units exceeded its carrying amount. As of December 31, 2012, the Company's assessment indicated that goodwill in the reporting units was not impaired. There have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed in the second quarter of the fiscal year ended June 30, 2013. The next annual assessment of the goodwill by reporting unit will be performed in the second quarter of the fiscal year ending June 30, 2014. | ||||||||||||||||||||||||||
Purchased Intangible Assets | ||||||||||||||||||||||||||
The components of purchased intangible assets as of the dates indicated below were as follows: | ||||||||||||||||||||||||||
(In thousands) | As of | As of | ||||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||||||||
Category | Range of | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Useful Lives | Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | and | Amount | and | |||||||||||||||||||||||
Impairment | Impairment | |||||||||||||||||||||||||
Existing technology | 4-7 years | $ | 133,659 | $ | 120,977 | $ | 12,682 | $ | 133,659 | $ | 119,106 | $ | 14,553 | |||||||||||||
Patents | 6-13 years | 57,648 | 51,904 | 5,744 | 57,648 | 51,068 | 6,580 | |||||||||||||||||||
Trade name/Trademark | 4-10 years | 19,893 | 16,303 | 3,590 | 19,893 | 15,928 | 3,965 | |||||||||||||||||||
Customer relationships | 6-7 years | 54,680 | 46,674 | 8,006 | 54,680 | 45,263 | 9,417 | |||||||||||||||||||
Other | 0-1 year | 16,200 | 16,200 | — | 16,200 | 16,200 | — | |||||||||||||||||||
Total | $ | 282,080 | $ | 252,058 | $ | 30,022 | $ | 282,080 | $ | 247,565 | $ | 34,515 | ||||||||||||||
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. | ||||||||||||||||||||||||||
For the three months ended September 30, 2013 and 2012, amortization expense for other intangible assets was $4.5 million and $7.2 million, respectively. Based on the intangible assets recorded as of September 30, 2013, and assuming no subsequent additions to, or impairment of, the underlying assets, the remaining estimated amortization expense is expected to be as follows: | ||||||||||||||||||||||||||
Fiscal year ending June 30: | Amortization | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
2014 (remaining 9 months) | $ | 10,875 | ||||||||||||||||||||||||
2015 | 12,752 | |||||||||||||||||||||||||
2016 | 5,564 | |||||||||||||||||||||||||
2017 | 806 | |||||||||||||||||||||||||
2018 | 25 | |||||||||||||||||||||||||
Total | $ | 30,022 | ||||||||||||||||||||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT |
In April 2008, the Company issued $750 million aggregate principal amount of 6.90% senior, unsecured long-term debt due in 2018 with an effective interest rate of 7.00%. The discount on the debt amounted to $5.4 million and is being amortized over the life of the debt using the straight-line method as opposed to the interest method due to immateriality. Interest is payable semi-annually on November 1 and May 1. The debt indenture includes covenants that limit the Company’s ability to grant liens on its facilities and to enter into sale and leaseback transactions, subject to significant allowances under which certain sale and leaseback transactions are not restricted. The Company was in compliance with all of its covenants as of September 30, 2013. | |
In certain circumstances involving a change of control followed by a downgrade of the rating of the Company’s senior notes, the Company will be required to make an offer to repurchase the senior notes at a purchase price equal to 101% of the aggregate principal amount of the notes, plus accrued and unpaid interest. The Company’s ability to repurchase the senior notes in such event may be limited by law, by the indenture associated with the senior notes, by the Company’s then-available financial resources or by the terms of other agreements to which the Company may be party at such time. If the Company fails to repurchase the senior notes as required by the indenture, it would constitute an event of default under the indenture governing the senior notes which, in turn, may also constitute an event of default under other obligations. | |
Based on the trading prices of the debt on the applicable dates, the fair value of the debt as of September 30, 2013 and June 30, 2013 was $879.2 million and $872.3 million , respectively. While the debt is recorded at cost, the fair value of the long-term debt was determined based on quoted prices in markets that are not active; accordingly, the long-term debt is categorized as Level 2 for purposes of the fair value measurement hierarchy. |
Equity_and_LongTerm_Incentive_
Equity and Long-Term Incentive Compensation Plans | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Equity and Long-Term Incentive Compensation Plans | EQUITY AND LONG-TERM INCENTIVE COMPENSATION PLANS | |||||||
Equity Incentive Program | ||||||||
Under the Company’s current equity incentive program, the Company issues equity awards from its 2004 Equity Incentive Plan (the “2004 Plan”), which provides for the grant of options to purchase shares of its common stock, stock appreciation rights, restricted stock units, performance shares, performance units and deferred stock units to its employees, consultants and members of its Board of Directors. The 2004 Plan currently permits the issuance of up to 32.0 million shares of common stock. Any 2004 Plan awards of restricted stock units, performance shares, performance units or deferred stock units with a per share or unit purchase price lower than 100% of fair market value on the grant date are currently counted against the total number of shares issuable under the 2004 Plan as 1.8 shares for every one share subject thereto. | ||||||||
The following table summarizes the combined activity under the Company's equity incentive plans for the indicated period: | ||||||||
(In thousands) | Available | |||||||
For Grant | ||||||||
Balances as of June 30, 2013(1) | 6,696 | |||||||
Restricted stock units granted(2)(3) | (1,224 | ) | ||||||
Restricted stock units canceled(2) | 36 | |||||||
Options canceled/expired/forfeited | 27 | |||||||
Plan shares expired(4) | (18 | ) | ||||||
Balances as of September 30, 2013(1) | 5,517 | |||||||
__________________ | ||||||||
-1 | Includes shares available for issuance under the 2004 Plan, as well as under the Company’s 1998 Outside Director Option Plan (the “Outside Director Plan”), which only permits the issuance of stock options to the Company’s non-employee members of the Board of Directors. As of September 30, 2013, 1.7 million shares were available for grant under the Outside Director Plan. | |||||||
-2 | The number of restricted stock units provided in this row reflects the application of the 1.8x multiple described above. | |||||||
-3 | Includes 0.3 million (reflected as 0.6 million shares in this table due to the application of the 1.8x multiple described above) restricted stock units granted to senior management during the three months ended September 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of September 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, granted during such fiscal period, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. | |||||||
-4 | Represents the portion of shares listed as “Options canceled/expired/forfeited” above that were issued under the Company’s equity incentive plans other than the 2004 Plan or the Outside Director Plan. Because the Company is only currently authorized to issue equity awards under the 2004 Plan and the Outside Director Plan, any equity awards that are canceled, expire or are forfeited under any other Company equity incentive plans do not result in additional shares being available to the Company for future grant. | |||||||
Except for stock options granted to non-employee Board members as part of their regular compensation package for service through the end of the first quarter of fiscal year 2008, the Company has granted only restricted stock units under its equity incentive program since September 2006. For the preceding several years until September 30, 2006, stock options were granted at the market price of the Company’s common stock on the date of grant (except for the previously disclosed retroactively priced options which were granted primarily prior to the fiscal year ended June 30, 2002), generally with a vesting period of five years and an exercise period not to exceed seven years (ten years for options granted prior to July 1, 2005) from the date of issuance. Restricted stock units may be granted with varying criteria such as service-based and/or performance-based vesting. | ||||||||
The fair value of stock-based awards is measured at the grant date and is recognized as an expense over the employee’s requisite service period. The fair value is determined using a Black-Scholes valuation model for purchase rights under the Company’s Employee Stock Purchase Plan and using the closing price of the Company’s common stock on the grant date for restricted stock units, adjusted to exclude the present value of dividends which are not accrued on the restricted stock units. | ||||||||
The following table shows pre-tax stock-based compensation expense for the indicated periods: | ||||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Stock-based compensation expense by: | ||||||||
Costs of revenues | $ | 3,177 | $ | 3,275 | ||||
Engineering, research and development | 5,408 | 5,463 | ||||||
Selling, general and administrative | 10,634 | 10,246 | ||||||
Total stock-based compensation expense | $ | 19,219 | $ | 18,984 | ||||
The following table shows stock-based compensation capitalized as inventory as of the dates indicated below: | ||||||||
(In thousands) | As of | As of | ||||||
30-Sep-13 | 30-Jun-13 | |||||||
Inventory | $ | 8,382 | $ | 8,098 | ||||
Stock Options | ||||||||
The following table summarizes the activity and weighted-average exercise price for stock options under all plans during the three months ended September 30, 2013: | ||||||||
Stock Options | Shares | Weighted-Average | ||||||
(In thousands) | Exercise Price | |||||||
Outstanding stock options as of June 30, 2013 | 1,663 | $ | 48.97 | |||||
Granted | — | $ | — | |||||
Exercised | (820 | ) | $ | 49.98 | ||||
Canceled/expired/forfeited | (27 | ) | $ | 50.42 | ||||
Outstanding stock options as of September 30, 2013 (all outstanding and all vested and exercisable) | 816 | $ | 47.92 | |||||
The Company has not issued any stock options since November 1, 2007. The weighted-average remaining contractual terms for total options outstanding under all plans, and for total options vested and exercisable under all plans, as of September 30, 2013 were each 0.7 years. The aggregate intrinsic values for total options outstanding under all plans, and for total options vested and exercisable under all plans, as of September 30, 2013 were each $10.6 million. | ||||||||
The authoritative guidance on stock-based compensation permits companies to select the option-pricing model used to estimate the fair value of their stock-based compensation awards. The Black-Scholes option-pricing model requires the input of assumptions, including the option’s expected term and the expected price volatility of the underlying stock. For purposes of the fair value estimates presented in this report, the Company has based its expected stock price volatility assumption on the market-based implied volatility from traded options of the Company’s common stock. As of September 30, 2013, the Company had no unrecognized stock-based compensation balance related to stock options. | ||||||||
The following table shows the total intrinsic value of options exercised, total cash received from employees and non-employee Board members as a result of stock option exercises and tax benefits realized by the Company in connection with these stock option exercises for the indicated periods: | ||||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Total intrinsic value of options exercised | $ | 7,883 | $ | 3,927 | ||||
Total cash received from employees and non-employee Board members as a result of stock option exercises | $ | 41,047 | $ | 23,250 | ||||
Tax benefits realized by the Company in connection with these exercises | $ | 2,617 | $ | 1,294 | ||||
The Company generally settles employee stock option exercises with newly issued common shares, except in certain tax jurisdictions where settling such exercises with treasury shares provides the Company or one of its subsidiaries with a tax benefit. | ||||||||
Restricted Stock Units | ||||||||
The following table shows the applicable number of restricted stock units and weighted-average grant date fair value for restricted stock units granted, vested and released, withheld for taxes, and forfeited during the three months ended September 30, 2013 and restricted stock units outstanding as of September 30, 2013 and June 30, 2013: | ||||||||
Restricted Stock Units | Shares | Weighted-Average | ||||||
(In thousands) (1) | Grant Date | |||||||
Fair Value | ||||||||
Outstanding restricted stock units as of June 30, 2013 | 5,374 | $ | 34.39 | |||||
Granted(2) | 680 | $ | 53.02 | |||||
Vested and released | (1,457 | ) | $ | 32.46 | ||||
Withheld for taxes | (814 | ) | $ | 32.46 | ||||
Forfeited | (20 | ) | $ | 33.56 | ||||
Outstanding restricted stock units as of September 30, 2013(2) | 3,763 | $ | 38.93 | |||||
__________________ | ||||||||
-1 | Share numbers reflect actual shares subject to awarded restricted stock units. Under the terms of the 2004 Plan, each of the share numbers presented in this column is multiplied by 1.8 to calculate the impact on the share reserve under the 2004 Plan. | |||||||
-2 | Includes 0.3 million restricted stock units granted to senior management during the three months ended September 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of September 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. | |||||||
The restricted stock units granted by the Company since the beginning of the fiscal year ended June 30, 2013 generally vest (a) with respect to awards with only service-based vesting criteria, in four equal installments on the first, second, third and fourth anniversaries of the grant date and (b) with respect to awards with both performance-based and service-based vesting criteria, in two equal installments on the third and fourth anniversaries of the grant date, in each case subject to the recipient remaining employed by the Company as of the applicable vesting date. The restricted stock units granted by the Company from the beginning of the fiscal year ended June 30, 2007 through the fiscal year ended June 30, 2012 generally vest in two equal installments on the second and fourth anniversaries of the grant date, subject to the recipient remaining employed by the Company as of the applicable vesting date. The fair value is determined using the closing price of the Company’s common stock on the grant date for restricted stock units, adjusted to exclude the present value of dividends which are not accrued on the restricted stock units. The restricted stock units have been awarded under the 2004 Plan, and each unit will entitle the recipient to one share of common stock when the applicable vesting requirements for that unit are satisfied. However, for each share actually issued under the awarded restricted stock units, the share reserve under the 2004 Plan will be reduced by 1.8 shares, as provided under the terms of the 2004 Plan. | ||||||||
The following table shows the weighted-average grant date fair value per unit for the restricted stock units granted and tax benefits realized by the Company in connection with vested and released restricted stock units for the indicated periods: | ||||||||
(In thousands, except for weighted-average grant date fair value) | Three months ended | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Weighted-average grant date fair value per unit | $ | 53.02 | $ | 51.65 | ||||
Tax benefits realized by the Company in connection with vested and released restricted stock units | $ | 40,606 | $ | 17,871 | ||||
As of September 30, 2013, the unrecognized stock-based compensation expense balance related to restricted stock units was $116.8 million, excluding the impact of estimated forfeitures, and will be recognized over a weighted-average remaining contractual term and an estimated weighted-average amortization period of 1.8 years. The intrinsic value of outstanding restricted stock units as of September 30, 2013 was $229.0 million. | ||||||||
Cash-Based Long-Term Incentive Compensation | ||||||||
Starting in fiscal year 2013, the Company adopted a cash-based long-term incentive program for many of its employees as part of the Company's employee compensation program. During the three months ended September 30, 2013, the Company approved cash-based long-term incentive (“Cash LTI”) awards of $1.8 million under the Company's Cash Long-Term Incentive Plan (“Cash LTI Plan”). Cash LTI awards issued to employees under the Cash LTI Plan will vest in four equal installments, with 25% of the aggregate amount of the Cash LTI award vesting on each yearly anniversary of the grant date over a four-year period. In order to receive payments under a Cash LTI award, participants must remain employed by the Company as of the applicable award vesting date. Executives and non-employee Board members are not participating in this program. During the three months ended September 30, 2013, the Company recognized $4.1 million in compensation expense under the Cash LTI Plan. As of September 30, 2013, the unrecognized compensation balance related to the Cash LTI Plan was $47.8 million, excluding the impact of estimated forfeitures. | ||||||||
Employee Stock Purchase Plan | ||||||||
KLA-Tencor’s Employee Stock Purchase Plan (“ESPP”) provides that eligible employees may contribute up to 10% of their eligible earnings toward the semi-annual purchase of KLA-Tencor’s common stock. The ESPP is qualified under Section 423 of the Internal Revenue Code. The employee’s purchase price is derived from a formula based on the closing price of the common stock on the first day of the offering period versus the closing price on the date of purchase (or, if not a trading day, on the immediately preceding trading day). | ||||||||
Effective January 1, 2010, the offering period (or length of the look-back period) under the ESPP has a duration of six months, and the purchase price with respect to each offering period beginning on or after such date is, until otherwise amended, equal to 85% of the lesser of (i) the fair market value of the Company’s common stock at the commencement of the applicable six-month offering period or (ii) the fair market value of the Company’s common stock on the purchase date. | ||||||||
The Company estimates the fair value of purchase rights under the ESPP using a Black-Scholes valuation model. The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: | ||||||||
Three months ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Stock purchase plan: | ||||||||
Expected stock price volatility | 29.1 | % | 30.2 | % | ||||
Risk-free interest rate | 0.1 | % | 0.1 | % | ||||
Dividend yield | 2.9 | % | 3.3 | % | ||||
Expected life of options (in years) | 0.5 | 0.5 | ||||||
No shares were purchased under the ESPP during the three months ended September 30, 2013 or 2012. The following table shows the tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods: | ||||||||
(In thousands, except for weighted-average fair value per share) | Three months ended | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP | $ | 786 | $ | 606 | ||||
Weighted-average fair value per share based on Black-Scholes model | $ | 11.8 | $ | 10.54 | ||||
The ESPP shares are replenished annually on the first day of each fiscal year by virtue of an evergreen provision. The provision allows for share replenishment equal to the lesser of 2.0 million shares or the number of shares which KLA-Tencor estimates will be required to be issued under the ESPP during the forthcoming fiscal year. As of September 30, 2013, a total of 1.7 million shares were reserved and available for issuance under the ESPP. As of the date of this report, no additional shares have been added to the ESPP with respect to the fiscal year ending June 30, 2014 |
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equity [Abstract] | ||||||||
Stock Repurchase Program | STOCK REPURCHASE PROGRAM | |||||||
Since July 1997, the Board of Directors has authorized the Company to systematically repurchase in the open market up to 80.8 million shares of its common stock under a repurchase program, including 8.0 million shares authorized in November 2012. The intent of this program is to offset the dilution from KLA-Tencor’s equity incentive plans and employee stock purchase plan, as well as to return excess cash to the Company’s stockholders. Subject to market conditions, applicable legal requirements and other factors, the repurchases will be made from time to time in the open market in compliance with applicable securities laws, including the Securities Exchange Act of 1934 and the rules promulgated thereunder, such as Rule 10b-18. As of September 30, 2013, 4.8 million shares were available for repurchase under the Company’s repurchase program. | ||||||||
Share repurchases for the indicated periods (based on the settlement date of the applicable repurchase) were as follows: | ||||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Number of shares of common stock repurchased | 1,038 | 1,361 | ||||||
Total cost of repurchases | $ | 60,504 | $ | 68,317 | ||||
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income Per Share | NET INCOME PER SHARE | |||||||
Basic net income per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated by using the weighted-average number of common shares outstanding during the period, increased to include the number of additional shares of common stock that would have been outstanding if the shares of common stock underlying the Company’s outstanding dilutive stock options and restricted stock units had been issued. The dilutive effect of outstanding options and restricted stock units is reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that is to be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The following table sets forth the computation of basic and diluted net income per share: | ||||||||
(In thousands, except per share amounts) | Three months ended | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Net income | $ | 111,197 | $ | 135,367 | ||||
Denominator: | ||||||||
Weighted-average shares-basic, excluding unvested restricted stock units | 165,886 | 166,531 | ||||||
Effect of dilutive options and restricted stock units | 2,848 | 3,293 | ||||||
Weighted-average shares-diluted | 168,734 | 169,824 | ||||||
Basic net income per share | $ | 0.67 | $ | 0.81 | ||||
Diluted net income per share | $ | 0.66 | $ | 0.8 | ||||
Anti-dilutive securities excluded from the computation of diluted net income per share | 30 | 1,717 | ||||||
The total amount of dividends paid during the three months ended September 30, 2013 and 2012 was $74.6 million and $66.6 million, respectively. On July 9, 2013, the Company announced that its Board of Directors had authorized an increase in the level of the Company's quarterly dividend from $0.40 to $0.45 per share. The increase in the amount of dividends paid during the three months ended September 30, 2013 reflects that increase in the level of the Company's quarterly dividend. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | INCOME TAXES | |||||||
The following table provides details of income taxes: | ||||||||
(Dollar amounts in thousands) | Three months ended September 30, | |||||||
2013 | 2012 | |||||||
Income before income taxes | $ | 139,864 | $ | 176,542 | ||||
Provision for income taxes | $ | 28,667 | $ | 41,175 | ||||
Effective tax rate | 20.5 | % | 23.3 | % | ||||
The Company’s estimated annual effective tax rate for the fiscal year ending June 30, 2014 is approximately 22.9%. | ||||||||
The difference between the actual effective tax rate of 20.5% during the quarter and the estimated annual effective tax rate of 22.9% is primarily due to a decrease in tax expense of $2.0 million related to deductions for employee stock activity and a decrease in tax expense of $2.7 million related to a non-taxable increase in the assets held within the Company's Executive Deferred Savings Plan. | ||||||||
Tax expense was lower as a percentage of income during the three months ended September 30, 2013 compared to the three months ended September 30, 2012 primarily due to the impact of the following items: | ||||||||
• | Tax expense was decreased by $2.3 million during the three months ended September 30, 2013 due to an increase in the proportion of the Company's earnings generated in jurisdictions with tax rates lower than the U.S. statutory tax rate; and | |||||||
• | Tax expense was decreased by $1.2 million during the three months ended September 30, 2013 related to the U.S. federal research credit. The research credit was not available during the three months ended September 30, 2012, because the credit expired on December 31, 2011. On January 2, 2013, the American Taxpayer Relief Act of 2012 reinstated the research credit and extended the credit through December 31, 2013. | |||||||
In the normal course of business, the Company is subject to examination by tax authorities throughout the world. The Company is subject to U.S. federal income tax examination for all years beginning from the fiscal year ended June 30, 2010. The Company is subject to state income tax examinations for all years beginning from the fiscal year ended June 30, 2009. The Company is also subject to examinations in other major foreign jurisdictions, including Singapore, for all years beginning from the fiscal year ended June 30, 2009. It is possible that certain examinations may be concluded in the next twelve months. The Company believes it is possible that it may recognize up to $7.2 million of its existing unrecognized tax benefits within the next twelve months as a result of the lapse of statutes of limitations and the resolution of examinations with various tax authorities. |
Litigation_and_Other_Legal_Mat
Litigation and Other Legal Matters | 3 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Other Legal Matters | LITIGATION AND OTHER LEGAL MATTERS |
The Company is named from time to time as a party to lawsuits and other types of legal proceedings and claims in the normal course of its business. Actions filed against the Company include commercial, intellectual property, customer, and labor and employment related claims, including complaints of alleged wrongful termination and potential class action lawsuits regarding alleged violations of federal and state wage and hour and other laws. In general, legal proceedings and claims regardless of their merit, and associated internal investigations (especially those relating to intellectual property or confidential information disputes) are often expensive to prosecute, defend or conduct and may divert management's attention and other company resources. Moreover, the results of legal proceedings are difficult to predict, and the costs incurred in litigation can be substantial, regardless of outcome. The Company believes the amounts provided in its condensed consolidated financial statements are adequate in light of the probable and estimated liabilities. However, because such matters are subject to many uncertainties, the ultimate outcomes are not predictable, and there can be no assurances that the actual amounts required to satisfy alleged liabilities from the matters described above will not exceed the amounts reflected in the Company's condensed consolidated financial statements or will not have a material adverse effect on its results of operations, financial condition or cash flows. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||||||
Factoring. KLA-Tencor has agreements (referred to as “factoring agreements”) with financial institutions to sell certain of its trade receivables and promissory notes from customers without recourse. The Company does not believe it is at risk for any material losses as a result of these agreements. In addition, the Company periodically sells certain letters of credit (“LCs”), without recourse, received from customers in payment for goods. | ||||||||
The following table shows total receivables sold under factoring agreements for the indicated periods: | ||||||||
Three months ended September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Receivables sold under factoring agreements | $ | 45,882 | $ | 48,534 | ||||
Factoring fees for the sale of certain trade receivables were recorded in interest income and other, net and were not material for the periods presented. | ||||||||
Facilities. KLA-Tencor leases certain of its facilities under arrangements that are accounted for as operating leases. Rent expense was $2.1 million and $2.2 million for the three months ended September 30, 2013 and 2012, respectively. | ||||||||
The following is a schedule of expected operating lease payments: | ||||||||
Fiscal year ending June 30, | Amount | |||||||
(In thousands) | ||||||||
2014 (remaining 9 months) | $ | 5,977 | ||||||
2015 | 6,330 | |||||||
2016 | 4,906 | |||||||
2017 | 3,762 | |||||||
2018 | 2,545 | |||||||
2019 and thereafter | 1,181 | |||||||
Total minimum lease payments | $ | 24,701 | ||||||
Purchase Commitments. KLA-Tencor maintains certain open inventory purchase commitments with its suppliers to ensure a smooth and continuous supply for key components. The Company’s liability under these purchase commitments is generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time-horizon can vary among different suppliers. The Company’s open inventory purchase commitments were approximately $303.4 million as of September 30, 2013 and are primarily due within the next 12 months. Actual expenditures will vary based upon the volume of the transactions and length of contractual service provided. In addition, the amounts paid under these arrangements may be less in the event that the arrangements are renegotiated or canceled. Certain agreements provide for potential cancellation penalties. | ||||||||
Cash Long-Term Incentive Plan. As of September 30, 2013, the Company had committed $62.9 million to future payment obligations under its Cash LTI Plan. The calculation of compensation expense related to the Cash LTI Plan includes estimated forfeiture rate assumptions. Cash LTI awards issued to employees under the Cash LTI Plan vest in four equal installments, with 25% of the aggregate amount of the Cash LTI award vesting on each yearly anniversary of the grant date over a four-year period. In order to receive payments under a Cash LTI award, participants must remain employed by the Company as of the applicable award vesting date. | ||||||||
Warranties, Guarantees and Contingencies. KLA-Tencor provides standard warranty coverage on its systems for 40 hours per week for 12 months, providing labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost as a charge to costs of revenues when revenue is recognized. The estimated warranty cost is based on historical product performance and field expenses. Utilizing actual service records, the Company calculates the average service hours and parts expense per system and applies the actual labor and overhead rates to determine the estimated warranty charge. The Company updates these estimated charges on a quarterly basis. The actual product performance and/or field expense profiles may differ, and in those cases the Company adjusts its warranty accruals accordingly. | ||||||||
The following table provides the changes in the product warranty accrual for the indicated periods: | ||||||||
Three months ended September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Beginning balance | $ | 42,603 | $ | 46,496 | ||||
Accruals for warranties issued during the period | 9,308 | 10,646 | ||||||
Changes in liability related to pre-existing warranties | (3,384 | ) | 2,352 | |||||
Settlements made during the period | (11,213 | ) | (13,303 | ) | ||||
Ending balance | $ | 37,314 | $ | 46,191 | ||||
The Company maintains guarantee arrangements available through various financial institutions for up to $26.0 million, of which $24.1 million had been issued as of September 30, 2013, primarily to fund guarantees to customs authorities for value-added tax (“VAT”) and other operating requirements of the Company’s subsidiaries in Europe and Asia. | ||||||||
KLA-Tencor is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in connection with contracts and license agreements or the sale of assets, under which the Company customarily agrees to hold the other party harmless against losses arising from, or provides customers with other remedies to protect against, bodily injury or damage to personal property caused by the Company's products, non-compliance with the Company's product performance specifications, infringement by the Company's products of third-party intellectual property rights and a breach of warranties, representations and covenants related to matters such as title to assets sold, validity of certain intellectual property rights, non-infringement of third-party rights, and certain income tax-related matters. In each of these circumstances, payment by the Company is typically subject to the other party making a claim to and cooperating with the Company pursuant to the procedures specified in the particular contract. This usually allows the Company to challenge the other party's claims or, in case of breach of intellectual property representations or covenants, to control the defense or settlement of any third-party claims brought against the other party. Further, the Company's obligations under these agreements may be limited in terms of amounts, activity (typically at the Company's option to replace or correct the products or terminate the agreement with a refund to the other party), and duration. In some instances, the Company may have recourse against third parties and/or insurance covering certain payments made by the Company. | ||||||||
Subject to certain limitations, the Company is obligated to indemnify its current and former directors, officers and employees with respect to certain litigation matters and investigations that arise in connection with their service to the Company. These obligations arise under the terms of the Company's certificate of incorporation, its bylaws, applicable contracts, and Delaware and California law. The obligation to indemnify generally means that the Company is required to pay or reimburse the individuals' reasonable legal expenses and possibly damages and other liabilities incurred in connection with these matters. | ||||||||
In addition, the Company may in limited circumstances enter into agreements that contain customer-specific pricing, discount, rebate or credit commitments offered by the Company. Furthermore, the Company may give these customers limited audit or inspection rights to enable them to confirm that the Company is complying with these commitments. If a customer elects to exercise its audit or inspection rights, the Company may be required to expend significant resources to support the audit or inspection, as well as to defend or settle any dispute with a customer that could potentially arise out of such audit or inspection. To date, the Company has made no accruals in its condensed consolidated financial statements for this contingency. While the Company has not in the past incurred significant expenses for resolving disputes regarding these types of commitments, the Company cannot make any assurance that it will not incur any such liabilities in the future. | ||||||||
It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company's obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on its business, financial condition, results of operations or cash flows. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||||||||||
The authoritative guidance requires companies to recognize all derivative instruments and hedging activities, including foreign currency exchange contracts, as either assets or liabilities at fair value on the balance sheet. Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the ineffective portion of any hedges, are reflected in the Condensed Consolidated Statement of Operations. In accordance with the guidance, the Company designates foreign currency forward exchange and option contracts as cash flow hedges of certain forecasted foreign currency denominated sales and purchase transactions. | |||||||||||||||||||||||||
KLA-Tencor’s foreign subsidiaries operate and sell KLA-Tencor’s products in various global markets. As a result, KLA-Tencor is exposed to risks relating to changes in foreign currency exchange rates. KLA-Tencor utilizes foreign currency forward exchange contracts and option contracts to hedge against future movements in foreign exchange rates that affect certain existing and forecasted foreign currency denominated sales and purchase transactions, such as the Japanese yen, the euro and the Israeli new shekel. The Company routinely hedges its exposures to certain foreign currencies with various financial institutions in an effort to minimize the impact of certain currency exchange rate fluctuations. These currency forward exchange contracts and options, designated as cash flow hedges, generally have maturities of less than 18 months. Cash flow hedges are evaluated for effectiveness monthly, based on changes in total fair value of the derivatives. If a financial counterparty to any of the Company’s hedging arrangements experiences financial difficulties or is otherwise unable to honor the terms of the foreign currency hedge, the Company may experience material losses. | |||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gains or losses on the derivative is reported as a component of accumulated other comprehensive income (loss) (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of currency forward exchange and option contracts due to changes in time value are excluded from the assessment of effectiveness. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||||||||||||||||||||||||
For derivative instruments that are not designated as accounting hedges, gains and losses are recognized in interest income and other, net. The Company uses foreign currency forward contracts to hedge certain foreign currency denominated assets or liabilities. The gains and losses on these derivatives are largely offset by the changes in the fair value of the assets or liabilities being hedged. | |||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: Foreign Exchange Contracts | |||||||||||||||||||||||||
The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the condensed consolidated financial statements for the indicated periods were as follows: | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
(In thousands) | Location in Financial Statements | 2013 | 2012 | ||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||
Gains in accumulated OCI on derivatives (effective portion) | Accumulated OCI | $ | (291 | ) | $ | (241 | ) | ||||||||||||||||||
Gains (losses) reclassified from accumulated OCI into income (effective portion): | Revenues | $ | 2,450 | $ | (491 | ) | |||||||||||||||||||
Costs of revenues | 66 | (601 | ) | ||||||||||||||||||||||
Total gains (losses) reclassified from accumulated OCI into income (effective portion) | $ | 2,516 | $ | (1,092 | ) | ||||||||||||||||||||
Gains recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | Interest income and other, net | $ | (18 | ) | $ | 51 | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||
Gains (losses) recognized in income | Interest income and other, net | $ | 2,626 | $ | 673 | ||||||||||||||||||||
The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum maturity of 13 months, as of the dates indicated below was as follows: | |||||||||||||||||||||||||
(In thousands) | As of | As of | |||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | ||||||||||||||||||||||||
Cash flow hedge contracts | |||||||||||||||||||||||||
Purchase | $ | 9,000 | $ | 14,641 | |||||||||||||||||||||
Sell | $ | 60,234 | $ | 35,178 | |||||||||||||||||||||
Other foreign currency hedge contracts | |||||||||||||||||||||||||
Purchase | $ | 111,360 | $ | 99,175 | |||||||||||||||||||||
Sell | $ | 68,419 | $ | 97,901 | |||||||||||||||||||||
The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets as of the dates indicated below were as follows: | |||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||
Balance Sheet Location | As of | As of | Balance Sheet Location | As of | As of | ||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | 30-Sep-13 | 30-Jun-13 | ||||||||||||||||||||||
(In thousands) | Fair Value | Fair Value | |||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 282 | $ | 362 | Other current liabilities | $ | 505 | $ | 384 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 282 | $ | 362 | $ | 505 | $ | 384 | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 903 | $ | 3,654 | Other current liabilities | $ | 940 | $ | 1,789 | |||||||||||||||
Total derivatives not designated as hedging instruments | $ | 903 | $ | 3,654 | $ | 940 | $ | 1,789 | |||||||||||||||||
Total derivatives | $ | 1,185 | $ | 4,016 | $ | 1,445 | $ | 2,173 | |||||||||||||||||
The following table provides the balances and changes in accumulated other comprehensive income (loss), before taxes, related to derivative instruments for the indicated periods: | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance | $ | 2,484 | $ | (962 | ) | ||||||||||||||||||||
Amount reclassified to income | (2,516 | ) | 1,092 | ||||||||||||||||||||||
Net change | (291 | ) | (241 | ) | |||||||||||||||||||||
Ending balance | $ | (323 | ) | $ | (111 | ) | |||||||||||||||||||
Offsetting of Derivative Assets and Liabilities | |||||||||||||||||||||||||
KLA-Tencor presents derivatives at gross fair values in the Condensed Consolidated Balance Sheet. The Company has entered into arrangements with each of its counterparties, which reduce credit risk by permitting net settlement of transactions with the same counterparty under certain conditions. As of September 30, 2013 and June 30, 2013, information related to the offsetting arrangements was as follows (in thousands): | |||||||||||||||||||||||||
As of September 30, 2013 | Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Derivatives - Assets | $ | 1,185 | $ | — | $ | 1,185 | $ | (1,139 | ) | $ | — | $ | 46 | ||||||||||||
Derivatives - Liabilities | $ | (1,445 | ) | $ | — | $ | (1,445 | ) | $ | 1,139 | $ | — | $ | (306 | ) | ||||||||||
As of June 30, 2013 | Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Derivatives - Assets | $ | 4,016 | $ | — | $ | 4,016 | $ | (1,520 | ) | $ | — | $ | 2,496 | ||||||||||||
Derivatives - Liabilities | $ | (2,173 | ) | $ | — | $ | (2,173 | ) | $ | 1,520 | $ | — | $ | (653 | ) | ||||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions | RELATED PARTY TRANSACTIONS | |||||||
During the three months ended September 30, 2013 and 2012, the Company purchased from, or sold to, several entities, where one or more executive officers of the Company or members of the Company’s Board of Directors, or their immediate family members, also serves as an executive officer or board member, including Cisco Systems, Inc., Freescale Semiconductor, Inc., Avago Technologies Ltd. and SAP AG. The following table provides the transactions with these parties for the indicated periods (for the portion of such period that they were considered related): | ||||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Total revenues | $ | 385 | $ | 2,872 | ||||
Total purchases | $ | 456 | $ | 2,384 | ||||
The Company had a receivable balance from these parties of $0.1 million and $0.9 million as of September 30, 2013 and June 30, 2013, respectively. Management believes that such transactions are at arm’s length and on similar terms as would have been obtained from unaffiliated third parties. |
Segment_Reporting_and_Geograph
Segment Reporting and Geographic Information | 3 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Segment Reporting and Geographic Information | SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | |||||||||||||
KLA-Tencor reports one reportable segment in accordance with the provisions of the authoritative guidance for segment reporting. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. KLA-Tencor’s chief operating decision maker is the Chief Executive Officer. | ||||||||||||||
The Company is engaged primarily in designing, manufacturing, and marketing process control and yield management solutions for the semiconductor and related nanoelectronics industries. All operating segments have been aggregated due to their inter-dependencies, commonality of long-term economic characteristics, products and services, the production processes, class of customer and distribution processes. The Company’s service products are an extension of the system product portfolio and provide customers with spare parts and fab management services (including system preventive maintenance and optimization services) to improve yield, increase production uptime and throughput, and lower the cost of ownership. Since the Company operates in one reportable segment, all financial segment information required by the authoritative guidance can be found in the condensed consolidated financial statements. | ||||||||||||||
The Company’s significant operations outside the United States include manufacturing facilities in Singapore, Israel, Belgium, Germany and China and sales, marketing and service offices in Western Europe, Japan and the Asia Pacific regions. For geographical revenue reporting, revenues are attributed to the geographic location in which the customer is located. Long-lived assets consist primarily of net property and equipment and are attributed to the geographic region in which they are located. | ||||||||||||||
The following is a summary of revenues by geographic region, based on ship-to location, for the indicated periods (as a percentage of total revenues): | ||||||||||||||
Three months ended September 30, | ||||||||||||||
(Dollar amounts in thousands) | 2013 | 2012 | ||||||||||||
Revenues: | ||||||||||||||
North America | $ | 179,395 | 28 | % | $ | 149,988 | 21 | % | ||||||
Taiwan | 117,291 | 18 | % | 276,299 | 38 | % | ||||||||
Japan | 81,412 | 12 | % | 88,715 | 12 | % | ||||||||
Europe & Israel | 121,487 | 18 | % | 59,160 | 8 | % | ||||||||
Korea | 77,278 | 12 | % | 70,247 | 10 | % | ||||||||
Rest of Asia | 81,474 | 12 | % | 76,300 | 11 | % | ||||||||
Total | $ | 658,337 | 100 | % | $ | 720,709 | 100 | % | ||||||
The following is a summary of revenues by major products for the indicated periods (as a percentage of total revenues): | ||||||||||||||
Three months ended September 30, | ||||||||||||||
(Dollar amounts in thousands) | 2013 | 2012 | ||||||||||||
Revenues: | ||||||||||||||
Defect inspection | $ | 343,163 | 52 | % | $ | 388,488 | 54 | % | ||||||
Metrology | 132,982 | 20 | % | 142,482 | 20 | % | ||||||||
Service | 156,597 | 24 | % | 146,631 | 20 | % | ||||||||
Other | 25,595 | 4 | % | 43,108 | 6 | % | ||||||||
Total | $ | 658,337 | 100 | % | $ | 720,709 | 100 | % | ||||||
Two customers each accounted for greater than 10% of total revenues for the three months ended September 30, 2013. Four customers each accounted for greater than 10% of total revenues for the three months ended September 30, 2012. Four customers each accounted for greater than 10% of net accounts receivable as of September 30, 2013. Two customers each accounted for greater than 10% of net accounts receivable as of June 30, 2013. | ||||||||||||||
Long-lived assets by geographic region as of the dates indicated below were as follows: | ||||||||||||||
(In thousands) | As of | As of | ||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||
Long-lived assets: | ||||||||||||||
United States | $ | 224,488 | $ | 215,136 | ||||||||||
Europe | 46,689 | 49,556 | ||||||||||||
Israel | 30,575 | 28,374 | ||||||||||||
Singapore | 44,848 | 44,957 | ||||||||||||
Rest of Asia | 11,155 | 9,736 | ||||||||||||
Total | $ | 357,755 | $ | 347,759 | ||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | Basis of Presentation. The condensed consolidated financial statements have been prepared by KLA-Tencor Corporation (“KLA-Tencor” or the “Company”) pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods indicated. These financial statements and notes, however, should be read in conjunction with Item 8, “Financial Statements and Supplementary Data” included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013, filed with the SEC on August 8, 2013. | |
The condensed consolidated financial statements include the accounts of KLA-Tencor and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. | ||
The results of operations for the three months ended September 30, 2013 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year ending June 30, 2014. | ||
Certain reclassifications have been made to the prior year’s Condensed Consolidated Balance Sheet and notes to conform to the current year presentation. The reclassifications had no effect on the Condensed Consolidated Statements of Operations or Cash Flows. | ||
Management Estimates | Management Estimates. The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in applying the Company's accounting policies that affect the reported amounts of assets and liabilities (and related disclosure of contingent assets and liabilities) at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Standard Warranty | KLA-Tencor provides standard warranty coverage on its systems for 40 hours per week for 12 months, providing labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost as a charge to costs of revenues when revenue is recognized. The estimated warranty cost is based on historical product performance and field expenses. Utilizing actual service records, the Company calculates the average service hours and parts expense per system and applies the actual labor and overhead rates to determine the estimated warranty charge. The Company updates these estimated charges on a quarterly basis. The actual product performance and/or field expense profiles may differ, and in those cases the Company adjusts its warranty accruals accordingly. | |
Revenue Recognition | Revenue Recognition. KLA-Tencor recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectibility is reasonably assured. The Company derives revenue from three sources—sales of systems, spare parts and services. In general, the Company recognizes revenue for systems when the system has been installed, is operating according to predetermined specifications and is accepted by the customer. When a customer delays installation for delivered products for which the Company has demonstrated a history of successful installation and acceptance, the Company recognizes revenue upon customer acceptance. Under certain circumstances, however, the Company recognizes revenue upon shipment, prior to acceptance from the customer, as follows: | |
• | When the customer fab has previously accepted the same tool, with the same specifications, and when the Company can objectively demonstrate that the tool meets all of the required acceptance criteria. | |
• | When system sales to independent distributors have no installation requirement, contain no acceptance agreement, and 100% payment is due based upon shipment. | |
• | When the installation of the system is deemed perfunctory. | |
• | When the customer withholds acceptance due to issues unrelated to product performance, in which case revenue is recognized when the system is performing as intended and meets predetermined specifications. | |
In circumstances in which we recognize revenue prior to installation, the portion of revenue associated with installation is deferred based on estimated fair value, and that revenue is recognized upon completion of the installation. | ||
In many instances, products are sold in stand-alone arrangements. Services are sold separately through renewals of annual maintenance contracts. The Company also allows for multiple element revenue arrangements in cases where certain elements of a sales arrangement are not delivered and accepted in one reporting period. To determine the relative fair value of each element in a revenue arrangement, the Company allocates arrangement consideration based on the selling price hierarchy. For substantially all of the arrangements with multiple deliverables pertaining to products and services, the Company uses vendor-specific objective evidence (“VSOE”) or third-party evidence (“TPE”) to allocate the selling price to each deliverable. The Company determines TPE based on historical prices charged for products and services when sold on a stand-alone basis. When the Company is unable to establish relative selling price using VSOE or TPE, the Company uses estimated selling price (“ESP”) in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP could potentially be used for new or customized products. The Company regularly reviews relative selling prices and maintains internal controls over the establishment and updates of these estimates. In a multiple element revenue arrangement, the Company defers revenue recognition associated with the relative fair value of the undelivered elements until that element is delivered to the customer. To be considered a separate element, the product or service in question must represent a separate unit of accounting, which means that such product or service must fulfill the following criteria: (a) the delivered item(s) has value to the customer on a stand-alone basis; and (b) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. If the arrangement does not meet all the above criteria, the entire amount of the sales contract is deferred until all elements are accepted by the customer. | ||
Trade-in rights are occasionally granted to customers to trade in tools in connection with subsequent purchases. The Company estimates the value of the trade-in right and reduces the revenue recognized on the initial sale. This amount is recognized at the earlier of the exercise of the trade-in right or the expiration of the trade-in right. | ||
Spare parts revenue is recognized when the product has been shipped, risk of loss has passed to the customer and collection of the resulting receivable is probable. | ||
Service and maintenance contract revenue is recognized ratably over the term of the maintenance contract. Revenue from services performed in the absence of a maintenance contract, including consulting and training revenue, is recognized when the related services are performed and collectibility is reasonably assured. | ||
The Company sells stand-alone software that is subject to the software revenue recognition guidance. The Company periodically reviews selling prices to determine whether VSOE exists, and in some situations where the Company is unable to establish VSOE for undelivered elements such as post-contract service, revenue is recognized ratably over the term of the service contract. | ||
The Company also defers the fair value of non-standard warranty bundled with equipment sales as unearned revenue. Non-standard warranty includes services incremental to the standard 40-hour per week coverage for twelve months. Non-standard warranty is recognized ratably as revenue when the applicable warranty term period commences. | ||
The deferred system profit balance equals the amount of deferred system revenue that was invoiced and due on shipment, less applicable product and warranty costs. Deferred system revenue represents the value of products that have been shipped and billed to customers which have not met the Company's revenue recognition criteria. Deferred system profit does not include the profit associated with product shipments to customers in Japan, to whom title does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In June 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update requiring an increase in the prominence of items reported in other comprehensive income. The amendment eliminated the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity and required that total comprehensive income, the components of net income, and the components of other comprehensive income be presented in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment became effective for the Company's interim period ended September 30, 2012. In February 2013, the FASB issued an accounting standard update on the reporting of reclassifications out of accumulated other comprehensive income of various components, which was originally deferred by the FASB in December 2011. The February 2013 update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this update requires an entity to present parenthetically (on the face of the financial statements, in the notes, or in some cases, cross-referenced to related footnote disclosures) significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. The amendment reflected in the February 2013 update became effective prospectively for the Company's interim period ended September 30, 2013. Early adoption was permitted. The amendment reflected in the February 2013 update did not have an impact on the Company's financial position, results of operations or cash flows as it is disclosure-only in nature. | |
In December 2011, the FASB issued an accounting standard update requiring enhanced disclosure about certain financial instruments and derivative instruments that are offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirement became effective retrospectively for the Company's interim period ended September 30, 2013. The disclosure requirement did not have an impact on the Company's financial position, results of operations or cash flows as it is disclosure-only in nature. | ||
In July 2013, the FASB issued an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard update, the Company’s unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. This accounting standard update will be effective for the Company's interim period ending September 30, 2014 and applied prospectively with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis as of the date indicated below were presented on the Company’s Condensed Consolidated Balance Sheet as follows: | |||||||||||
As of September 30, 2013 (In thousands) | Total | Quoted Prices in | Significant Other | |||||||||
Active Markets | Observable Inputs | |||||||||||
for Identical | (Level 2) | |||||||||||
Assets (Level 1) | ||||||||||||
Assets | ||||||||||||
Cash equivalents: | ||||||||||||
Corporate debt securities | $ | 27,600 | $ | — | $ | 27,600 | ||||||
Money market and other | 685,074 | 685,074 | — | |||||||||
Marketable securities: | ||||||||||||
U.S. Treasury securities | 147,236 | 147,236 | — | |||||||||
U.S. Government agency securities | 684,749 | 672,502 | 12,247 | |||||||||
Municipal securities | 104,533 | — | 104,533 | |||||||||
Corporate debt securities | 1,070,336 | — | 1,070,336 | |||||||||
Sovereign securities | 33,202 | 8,498 | 24,704 | |||||||||
Equity securities | 2,128 | 2,128 | — | |||||||||
Total cash equivalents and marketable securities(1) | 2,754,858 | 1,515,438 | 1,239,420 | |||||||||
Other current assets: | ||||||||||||
Derivative assets | 1,185 | — | 1,185 | |||||||||
Other non-current assets: | ||||||||||||
Executive Deferred Savings Plan | 147,926 | 102,112 | 45,814 | |||||||||
Total financial assets(1) | $ | 2,903,969 | $ | 1,617,550 | $ | 1,286,419 | ||||||
Liabilities | ||||||||||||
Other current liabilities: | ||||||||||||
Derivative liabilities | $ | (1,445 | ) | $ | — | $ | (1,445 | ) | ||||
Executive Deferred Savings Plan | (148,282 | ) | (102,280 | ) | (46,002 | ) | ||||||
Total financial liabilities | $ | (149,727 | ) | $ | (102,280 | ) | $ | (47,447 | ) | |||
________________ | ||||||||||||
(1) Excludes cash of $176.3 million held in operating accounts and time deposits of $20.7 million as of September 30, 2013. | ||||||||||||
Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis as of the date indicated below were presented on the Company’s Condensed Consolidated Balance Sheet as follows: | ||||||||||||
As of June 30, 2013 (In thousands) | Total | Quoted Prices in | Significant Other | |||||||||
Active Markets | Observable Inputs | |||||||||||
for Identical | (Level 2) | |||||||||||
Assets (Level 1) | ||||||||||||
Assets | ||||||||||||
Cash equivalents: | ||||||||||||
Corporate debt securities | $ | 3,800 | $ | — | $ | 3,800 | ||||||
Money market and other | 817,608 | 817,608 | — | |||||||||
Marketable securities: | ||||||||||||
U.S. Treasury securities | 93,787 | 93,787 | — | |||||||||
U.S. Government agency securities | 598,031 | 598,031 | — | |||||||||
Municipal securities | 103,455 | — | 103,455 | |||||||||
Corporate debt securities | 1,099,525 | — | 1,099,525 | |||||||||
Sovereign securities | 33,805 | 13,559 | 20,246 | |||||||||
Total cash equivalents and marketable securities(1) | 2,750,011 | 1,522,985 | 1,227,026 | |||||||||
Other current assets: | ||||||||||||
Derivative assets | 4,016 | — | 4,016 | |||||||||
Other non-current assets: | ||||||||||||
Executive Deferred Savings Plan | 136,461 | 96,180 | 40,281 | |||||||||
Total financial assets(1) | $ | 2,890,488 | $ | 1,619,165 | $ | 1,271,323 | ||||||
Liabilities | ||||||||||||
Other current liabilities: | ||||||||||||
Derivative liabilities | $ | (2,173 | ) | $ | — | $ | (2,173 | ) | ||||
Executive Deferred Savings Plan | (137,849 | ) | (97,570 | ) | (40,279 | ) | ||||||
Total financial liabilities | $ | (140,022 | ) | $ | (97,570 | ) | $ | (42,452 | ) | |||
________________ | ||||||||||||
(1) Excludes cash of $125.5 million held in operating accounts and time deposits of $43.4 million as of June 30, 2013 |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 3 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Balance Sheet Components [Abstract] | ||||||||||||||||||||
Balance Sheet Components | ||||||||||||||||||||
(In thousands) | As of | As of | ||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||
Accounts receivable, net: | ||||||||||||||||||||
Accounts receivable, gross | $ | 462,766 | $ | 546,745 | ||||||||||||||||
Allowance for doubtful accounts | (22,092 | ) | (22,135 | ) | ||||||||||||||||
$ | 440,674 | $ | 524,610 | |||||||||||||||||
Inventories: | ||||||||||||||||||||
Customer service parts | $ | 182,560 | $ | 180,749 | ||||||||||||||||
Raw materials | 254,902 | 229,233 | ||||||||||||||||||
Work-in-process | 170,104 | 176,704 | ||||||||||||||||||
Finished goods | 52,710 | 47,762 | ||||||||||||||||||
$ | 660,276 | $ | 634,448 | |||||||||||||||||
Other current assets: | ||||||||||||||||||||
Prepaid expenses | $ | 37,146 | $ | 31,997 | ||||||||||||||||
Prepaid income taxes | 57,764 | 25,825 | ||||||||||||||||||
Other current assets | 15,554 | 17,217 | ||||||||||||||||||
$ | 110,464 | $ | 75,039 | |||||||||||||||||
Land, property and equipment, net: | ||||||||||||||||||||
Land | $ | 41,834 | $ | 41,850 | ||||||||||||||||
Buildings and leasehold improvements | 276,893 | 272,920 | ||||||||||||||||||
Machinery and equipment | 487,874 | 476,747 | ||||||||||||||||||
Office furniture and fixtures | 20,837 | 20,701 | ||||||||||||||||||
Construction-in-process | 19,324 | 16,604 | ||||||||||||||||||
846,762 | 828,822 | |||||||||||||||||||
Less: accumulated depreciation and amortization | (526,925 | ) | (523,541 | ) | ||||||||||||||||
$ | 319,837 | $ | 305,281 | |||||||||||||||||
Other non-current assets: | ||||||||||||||||||||
Executive Deferred Savings Plan(1) | $ | 147,926 | $ | 136,461 | ||||||||||||||||
Deferred tax assets – long-term | 87,573 | 114,833 | ||||||||||||||||||
Other | 16,900 | 18,129 | ||||||||||||||||||
$ | 252,399 | $ | 269,423 | |||||||||||||||||
Other current liabilities: | ||||||||||||||||||||
Warranty | $ | 37,314 | $ | 42,603 | ||||||||||||||||
Executive Deferred Savings Plan(1) | 148,282 | 137,849 | ||||||||||||||||||
Compensation and benefits | 156,418 | 195,793 | ||||||||||||||||||
Income taxes payable | 14,141 | 11,076 | ||||||||||||||||||
Interest payable | 21,706 | 8,769 | ||||||||||||||||||
Other accrued expenses | 122,239 | 130,959 | ||||||||||||||||||
$ | 500,100 | $ | 527,049 | |||||||||||||||||
________________ | ||||||||||||||||||||
-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 the quarter following a participant’s retirement or termination of employment, 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 September 30, 2013, 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 Sheet. | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
The components of accumulated other comprehensive income (loss) (“AOCI”) as of the dates indicated below were as follows: | ||||||||||||||||||||
(In thousands) | Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Defined Benefit Plans | Total | |||||||||||||||
Balance as of June 30, 2013 | $ | (22,467 | ) | $ | (602 | ) | $ | 1,594 | $ | (15,171 | ) | $ | (36,646 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 5,110 | 4,139 | (291 | ) | 313 | 9,271 | ||||||||||||||
Amounts reclassified from AOCI | — | (234 | ) | (2,516 | ) | — | (2,750 | ) | ||||||||||||
Taxes (benefits) | (1,315 | ) | (1,342 | ) | 1,005 | (114 | ) | (1,766 | ) | |||||||||||
Other comprehensive income (loss) | 3,795 | 2,563 | (1,802 | ) | 199 | 4,755 | ||||||||||||||
Balance as of September 30, 2013 | $ | (18,672 | ) | $ | 1,961 | $ | (208 | ) | $ | (14,972 | ) | $ | (31,891 | ) | ||||||
Effects on Net Income of Amounts Reclassified from Accumulated Other Comprehensive Income | The effects on net income of amounts reclassified from AOCI for the three months ended September 30, 2013 were as follows (in thousands): | |||||||||||||||||||
AOCI Components | Location | Amounts Reclassified from AOCI to the Consolidated Statement of Operations | ||||||||||||||||||
Gains on cash flow hedges from foreign exchange contracts | Revenues | $ | 2,450 | |||||||||||||||||
Costs of revenues | 66 | |||||||||||||||||||
Total before tax | 2,516 | |||||||||||||||||||
Unrealized gains on available-for-sale investments | Interest income and other, net | 234 | ||||||||||||||||||
Total amount reclassified from AOCI | $ | 2,750 | ||||||||||||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
Summary of Marketable Securities | The amortized cost and fair value of marketable securities as of the dates indicated below were as follows: | |||||||||||||||
As of September 30, 2013 (In thousands) | Amortized | Gross | Gross | Fair | ||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
U.S. Treasury securities | $ | 147,198 | $ | 100 | $ | (62 | ) | $ | 147,236 | |||||||
U.S. Government agency securities | 684,400 | 754 | (405 | ) | 684,749 | |||||||||||
Municipal securities | 104,743 | 60 | (270 | ) | 104,533 | |||||||||||
Corporate debt securities | 1,095,912 | 2,919 | (895 | ) | 1,097,936 | |||||||||||
Money market and other | 685,074 | — | — | 685,074 | ||||||||||||
Sovereign securities | 33,198 | 18 | (14 | ) | 33,202 | |||||||||||
Equity securities | 1,360 | 768 | — | 2,128 | ||||||||||||
Subtotal | 2,751,885 | 4,619 | (1,646 | ) | 2,754,858 | |||||||||||
Add: Time deposits(1) | 20,713 | — | — | 20,713 | ||||||||||||
Less: Cash equivalents | 728,645 | — | — | 728,645 | ||||||||||||
Marketable securities | $ | 2,043,953 | $ | 4,619 | $ | (1,646 | ) | $ | 2,046,926 | |||||||
As of June 30, 2013 (In thousands) | Amortized | Gross | Gross | Fair | ||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
U.S. Treasury securities | $ | 93,940 | $ | 53 | $ | (206 | ) | $ | 93,787 | |||||||
U.S. Government agency securities | 598,471 | 569 | (1,009 | ) | 598,031 | |||||||||||
Municipal securities | 103,686 | 71 | (302 | ) | 103,455 | |||||||||||
Corporate debt securities | 1,103,438 | 2,353 | (2,466 | ) | 1,103,325 | |||||||||||
Money market and other | 817,608 | — | — | 817,608 | ||||||||||||
Sovereign securities | 33,799 | 25 | (19 | ) | 33,805 | |||||||||||
Subtotal | 2,750,942 | 3,071 | (4,002 | ) | 2,750,011 | |||||||||||
Add: Time deposits(1) | 43,413 | — | — | 43,413 | ||||||||||||
Less: Cash equivalents | 859,933 | — | — | 859,933 | ||||||||||||
Marketable securities | $ | 1,934,422 | $ | 3,071 | $ | (4,002 | ) | $ | 1,933,491 | |||||||
________________ | ||||||||||||||||
-1 | Time deposits excluded from fair value measurements. | |||||||||||||||
Investments with Gross Unrealized Losses | The following table summarizes the fair value and gross unrealized losses of the Company’s investments that were in an unrealized loss position as of the date indicated below: | |||||||||||||||
As of September 30, 2013 (In thousands) | Fair Value | Gross | ||||||||||||||
Unrealized | ||||||||||||||||
Losses(1) | ||||||||||||||||
U.S. Treasury securities | $ | 30,627 | $ | (62 | ) | |||||||||||
U.S. Government agency securities | 248,191 | (405 | ) | |||||||||||||
Municipal securities | 61,180 | (270 | ) | |||||||||||||
Corporate debt securities | 367,513 | (895 | ) | |||||||||||||
Sovereign securities | 21,127 | (14 | ) | |||||||||||||
Total | $ | 728,638 | $ | (1,646 | ) | |||||||||||
__________________ | ||||||||||||||||
-1 | Of the total gross unrealized losses, the amount of total gross unrealized losses related to investments that had been in a continuous loss position for 12 months or more was immaterial. | |||||||||||||||
Contractual Maturities of Securities | The contractual maturities of securities classified as available-for-sale, regardless of their classification on the Company's Condensed Consolidated Balance Sheet, as of the date indicated below were as follows: | |||||||||||||||
As of September 30, 2013 (In thousands) | Amortized Cost | Fair Value | ||||||||||||||
Due within one year | $ | 478,400 | $ | 480,079 | ||||||||||||
Due after one year through three years | 1,565,553 | 1,566,847 | ||||||||||||||
$ | 2,043,953 | $ | 2,046,926 | |||||||||||||
Goodwill_and_Purchased_Intangi1
Goodwill and Purchased Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill Balances | The following table presents goodwill balances as of the dates indicated below: | |||||||||||||||||||||||||
(In thousands) | As of | As of | ||||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||||||||
Gross goodwill balance | $ | 604,126 | $ | 604,205 | ||||||||||||||||||||||
Accumulated impairment losses | (277,570 | ) | (277,570 | ) | ||||||||||||||||||||||
Net goodwill balance | $ | 326,556 | $ | 326,635 | ||||||||||||||||||||||
Components of Purchased Intangible Assets | The components of purchased intangible assets as of the dates indicated below were as follows: | |||||||||||||||||||||||||
(In thousands) | As of | As of | ||||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||||||||
Category | Range of | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Useful Lives | Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||
Amount | and | Amount | and | |||||||||||||||||||||||
Impairment | Impairment | |||||||||||||||||||||||||
Existing technology | 4-7 years | $ | 133,659 | $ | 120,977 | $ | 12,682 | $ | 133,659 | $ | 119,106 | $ | 14,553 | |||||||||||||
Patents | 6-13 years | 57,648 | 51,904 | 5,744 | 57,648 | 51,068 | 6,580 | |||||||||||||||||||
Trade name/Trademark | 4-10 years | 19,893 | 16,303 | 3,590 | 19,893 | 15,928 | 3,965 | |||||||||||||||||||
Customer relationships | 6-7 years | 54,680 | 46,674 | 8,006 | 54,680 | 45,263 | 9,417 | |||||||||||||||||||
Other | 0-1 year | 16,200 | 16,200 | — | 16,200 | 16,200 | — | |||||||||||||||||||
Total | $ | 282,080 | $ | 252,058 | $ | 30,022 | $ | 282,080 | $ | 247,565 | $ | 34,515 | ||||||||||||||
Remaining Estimated Amortization Expense | Based on the intangible assets recorded as of September 30, 2013, and assuming no subsequent additions to, or impairment of, the underlying assets, the remaining estimated amortization expense is expected to be as follows: | |||||||||||||||||||||||||
Fiscal year ending June 30: | Amortization | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
2014 (remaining 9 months) | $ | 10,875 | ||||||||||||||||||||||||
2015 | 12,752 | |||||||||||||||||||||||||
2016 | 5,564 | |||||||||||||||||||||||||
2017 | 806 | |||||||||||||||||||||||||
2018 | 25 | |||||||||||||||||||||||||
Total | $ | 30,022 | ||||||||||||||||||||||||
Equity_and_LongTerm_Incentive_1
Equity and Long-Term Incentive Compensation Plans (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Schedule of Combined Activity Under Equity Incentive Plans | The following table summarizes the combined activity under the Company's equity incentive plans for the indicated period: | |||||||
(In thousands) | Available | |||||||
For Grant | ||||||||
Balances as of June 30, 2013(1) | 6,696 | |||||||
Restricted stock units granted(2)(3) | (1,224 | ) | ||||||
Restricted stock units canceled(2) | 36 | |||||||
Options canceled/expired/forfeited | 27 | |||||||
Plan shares expired(4) | (18 | ) | ||||||
Balances as of September 30, 2013(1) | 5,517 | |||||||
__________________ | ||||||||
-1 | Includes shares available for issuance under the 2004 Plan, as well as under the Company’s 1998 Outside Director Option Plan (the “Outside Director Plan”), which only permits the issuance of stock options to the Company’s non-employee members of the Board of Directors. As of September 30, 2013, 1.7 million shares were available for grant under the Outside Director Plan. | |||||||
-2 | The number of restricted stock units provided in this row reflects the application of the 1.8x multiple described above. | |||||||
-3 | Includes 0.3 million (reflected as 0.6 million shares in this table due to the application of the 1.8x multiple described above) restricted stock units granted to senior management during the three months ended September 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of September 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, granted during such fiscal period, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. | |||||||
-4 | Represents the portion of shares listed as “Options canceled/expired/forfeited” above that were issued under the Company’s equity incentive plans other than the 2004 Plan or the Outside Director Plan. Because the Company is only currently authorized to issue equity awards under the 2004 Plan and the Outside Director Plan, any equity awards that are canceled, expire or are forfeited under any other Company equity incentive plans do not result in additional shares being available to the Company for future grant. | |||||||
Schedule of Stock-based Compensation Expense | The following table shows pre-tax stock-based compensation expense for the indicated periods: | |||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Stock-based compensation expense by: | ||||||||
Costs of revenues | $ | 3,177 | $ | 3,275 | ||||
Engineering, research and development | 5,408 | 5,463 | ||||||
Selling, general and administrative | 10,634 | 10,246 | ||||||
Total stock-based compensation expense | $ | 19,219 | $ | 18,984 | ||||
Schedule of Stock-based Compensation Capitalized as Inventory | The following table shows stock-based compensation capitalized as inventory as of the dates indicated below: | |||||||
(In thousands) | As of | As of | ||||||
30-Sep-13 | 30-Jun-13 | |||||||
Inventory | $ | 8,382 | $ | 8,098 | ||||
Schedule of Stock Option Activity | The following table summarizes the activity and weighted-average exercise price for stock options under all plans during the three months ended September 30, 2013: | |||||||
Stock Options | Shares | Weighted-Average | ||||||
(In thousands) | Exercise Price | |||||||
Outstanding stock options as of June 30, 2013 | 1,663 | $ | 48.97 | |||||
Granted | — | $ | — | |||||
Exercised | (820 | ) | $ | 49.98 | ||||
Canceled/expired/forfeited | (27 | ) | $ | 50.42 | ||||
Outstanding stock options as of September 30, 2013 (all outstanding and all vested and exercisable) | 816 | $ | 47.92 | |||||
Schedule of Intrinsic Value, Cash Received and Tax Benefits for Stock Option Exercises | The following table shows the total intrinsic value of options exercised, total cash received from employees and non-employee Board members as a result of stock option exercises and tax benefits realized by the Company in connection with these stock option exercises for the indicated periods: | |||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Total intrinsic value of options exercised | $ | 7,883 | $ | 3,927 | ||||
Total cash received from employees and non-employee Board members as a result of stock option exercises | $ | 41,047 | $ | 23,250 | ||||
Tax benefits realized by the Company in connection with these exercises | $ | 2,617 | $ | 1,294 | ||||
Schedule of Restricted Stock Activity | The following table shows the applicable number of restricted stock units and weighted-average grant date fair value for restricted stock units granted, vested and released, withheld for taxes, and forfeited during the three months ended September 30, 2013 and restricted stock units outstanding as of September 30, 2013 and June 30, 2013: | |||||||
Restricted Stock Units | Shares | Weighted-Average | ||||||
(In thousands) (1) | Grant Date | |||||||
Fair Value | ||||||||
Outstanding restricted stock units as of June 30, 2013 | 5,374 | $ | 34.39 | |||||
Granted(2) | 680 | $ | 53.02 | |||||
Vested and released | (1,457 | ) | $ | 32.46 | ||||
Withheld for taxes | (814 | ) | $ | 32.46 | ||||
Forfeited | (20 | ) | $ | 33.56 | ||||
Outstanding restricted stock units as of September 30, 2013(2) | 3,763 | $ | 38.93 | |||||
__________________ | ||||||||
-1 | Share numbers reflect actual shares subject to awarded restricted stock units. Under the terms of the 2004 Plan, each of the share numbers presented in this column is multiplied by 1.8 to calculate the impact on the share reserve under the 2004 Plan. | |||||||
-2 | Includes 0.3 million restricted stock units granted to senior management during the three months ended September 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of September 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. | |||||||
Schedule of Grant Date Fair Value, Weighted Average Grant Date Fair Value, and Tax Benefits for Restricted Stock Units | The following table shows the weighted-average grant date fair value per unit for the restricted stock units granted and tax benefits realized by the Company in connection with vested and released restricted stock units for the indicated periods: | |||||||
(In thousands, except for weighted-average grant date fair value) | Three months ended | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Weighted-average grant date fair value per unit | $ | 53.02 | $ | 51.65 | ||||
Tax benefits realized by the Company in connection with vested and released restricted stock units | $ | 40,606 | $ | 17,871 | ||||
Employee Stock Purchase Rights Valuation | The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: | |||||||
Three months ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Stock purchase plan: | ||||||||
Expected stock price volatility | 29.1 | % | 30.2 | % | ||||
Risk-free interest rate | 0.1 | % | 0.1 | % | ||||
Dividend yield | 2.9 | % | 3.3 | % | ||||
Expected life of options (in years) | 0.5 | 0.5 | ||||||
Schedule of Tax Benefits Realized and Weighted-average fair value for the ESPP | The following table shows the tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods: | |||||||
(In thousands, except for weighted-average fair value per share) | Three months ended | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP | $ | 786 | $ | 606 | ||||
Weighted-average fair value per share based on Black-Scholes model | $ | 11.8 | $ | 10.54 | ||||
Stock_Repurchase_Program_Table
Stock Repurchase Program (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equity [Abstract] | ||||||||
Schedule of Share Repurchases | Share repurchases for the indicated periods (based on the settlement date of the applicable repurchase) were as follows: | |||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Number of shares of common stock repurchased | 1,038 | 1,361 | ||||||
Total cost of repurchases | $ | 60,504 | $ | 68,317 | ||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share: | |||||||
(In thousands, except per share amounts) | Three months ended | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Net income | $ | 111,197 | $ | 135,367 | ||||
Denominator: | ||||||||
Weighted-average shares-basic, excluding unvested restricted stock units | 165,886 | 166,531 | ||||||
Effect of dilutive options and restricted stock units | 2,848 | 3,293 | ||||||
Weighted-average shares-diluted | 168,734 | 169,824 | ||||||
Basic net income per share | $ | 0.67 | $ | 0.81 | ||||
Diluted net income per share | $ | 0.66 | $ | 0.8 | ||||
Anti-dilutive securities excluded from the computation of diluted net income per share | 30 | 1,717 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule Of Income Taxes Details | The following table provides details of income taxes: | |||||||
(Dollar amounts in thousands) | Three months ended September 30, | |||||||
2013 | 2012 | |||||||
Income before income taxes | $ | 139,864 | $ | 176,542 | ||||
Provision for income taxes | $ | 28,667 | $ | 41,175 | ||||
Effective tax rate | 20.5 | % | 23.3 | % |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Receivables Sold Under Factoring Agreements | The following table shows total receivables sold under factoring agreements for the indicated periods: | |||||||
Three months ended September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Receivables sold under factoring agreements | $ | 45,882 | $ | 48,534 | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | The following is a schedule of expected operating lease payments: | |||||||
Fiscal year ending June 30, | Amount | |||||||
(In thousands) | ||||||||
2014 (remaining 9 months) | $ | 5,977 | ||||||
2015 | 6,330 | |||||||
2016 | 4,906 | |||||||
2017 | 3,762 | |||||||
2018 | 2,545 | |||||||
2019 and thereafter | 1,181 | |||||||
Total minimum lease payments | $ | 24,701 | ||||||
Changes in Product Warranty Liability | The following table provides the changes in the product warranty accrual for the indicated periods: | |||||||
Three months ended September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Beginning balance | $ | 42,603 | $ | 46,496 | ||||
Accruals for warranties issued during the period | 9,308 | 10,646 | ||||||
Changes in liability related to pre-existing warranties | (3,384 | ) | 2,352 | |||||
Settlements made during the period | (11,213 | ) | (13,303 | ) | ||||
Ending balance | $ | 37,314 | $ | 46,191 | ||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Derivative Instruments, Location, Designated and Non-Designated, Gains (Losses) | The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the condensed consolidated financial statements for the indicated periods were as follows: | ||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
(In thousands) | Location in Financial Statements | 2013 | 2012 | ||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||
Gains in accumulated OCI on derivatives (effective portion) | Accumulated OCI | $ | (291 | ) | $ | (241 | ) | ||||||||||||||||||
Gains (losses) reclassified from accumulated OCI into income (effective portion): | Revenues | $ | 2,450 | $ | (491 | ) | |||||||||||||||||||
Costs of revenues | 66 | (601 | ) | ||||||||||||||||||||||
Total gains (losses) reclassified from accumulated OCI into income (effective portion) | $ | 2,516 | $ | (1,092 | ) | ||||||||||||||||||||
Gains recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | Interest income and other, net | $ | (18 | ) | $ | 51 | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||
Gains (losses) recognized in income | Interest income and other, net | $ | 2,626 | $ | 673 | ||||||||||||||||||||
Schedule of Notional Amounts of Derivatives Outstanding | The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum maturity of 13 months, as of the dates indicated below was as follows: | ||||||||||||||||||||||||
(In thousands) | As of | As of | |||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | ||||||||||||||||||||||||
Cash flow hedge contracts | |||||||||||||||||||||||||
Purchase | $ | 9,000 | $ | 14,641 | |||||||||||||||||||||
Sell | $ | 60,234 | $ | 35,178 | |||||||||||||||||||||
Other foreign currency hedge contracts | |||||||||||||||||||||||||
Purchase | $ | 111,360 | $ | 99,175 | |||||||||||||||||||||
Sell | $ | 68,419 | $ | 97,901 | |||||||||||||||||||||
Schedule of Derivative Instruments, Fair Value | The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets as of the dates indicated below were as follows: | ||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||
Balance Sheet Location | As of | As of | Balance Sheet Location | As of | As of | ||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | 30-Sep-13 | 30-Jun-13 | ||||||||||||||||||||||
(In thousands) | Fair Value | Fair Value | |||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 282 | $ | 362 | Other current liabilities | $ | 505 | $ | 384 | |||||||||||||||
Total derivatives designated as hedging instruments | $ | 282 | $ | 362 | $ | 505 | $ | 384 | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 903 | $ | 3,654 | Other current liabilities | $ | 940 | $ | 1,789 | |||||||||||||||
Total derivatives not designated as hedging instruments | $ | 903 | $ | 3,654 | $ | 940 | $ | 1,789 | |||||||||||||||||
Total derivatives | $ | 1,185 | $ | 4,016 | $ | 1,445 | $ | 2,173 | |||||||||||||||||
Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments | The following table provides the balances and changes in accumulated other comprehensive income (loss), before taxes, related to derivative instruments for the indicated periods: | ||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance | $ | 2,484 | $ | (962 | ) | ||||||||||||||||||||
Amount reclassified to income | (2,516 | ) | 1,092 | ||||||||||||||||||||||
Net change | (291 | ) | (241 | ) | |||||||||||||||||||||
Ending balance | $ | (323 | ) | $ | (111 | ) | |||||||||||||||||||
Offsetting of Assets and Liabilities | As of September 30, 2013 and June 30, 2013, information related to the offsetting arrangements was as follows (in thousands): | ||||||||||||||||||||||||
As of September 30, 2013 | Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Derivatives - Assets | $ | 1,185 | $ | — | $ | 1,185 | $ | (1,139 | ) | $ | — | $ | 46 | ||||||||||||
Derivatives - Liabilities | $ | (1,445 | ) | $ | — | $ | (1,445 | ) | $ | 1,139 | $ | — | $ | (306 | ) | ||||||||||
As of June 30, 2013 | Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Derivatives - Assets | $ | 4,016 | $ | — | $ | 4,016 | $ | (1,520 | ) | $ | — | $ | 2,496 | ||||||||||||
Derivatives - Liabilities | $ | (2,173 | ) | $ | — | $ | (2,173 | ) | $ | 1,520 | $ | — | $ | (653 | ) | ||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions | The following table provides the transactions with these parties for the indicated periods (for the portion of such period that they were considered related): | |||||||
Three months ended | ||||||||
September 30, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Total revenues | $ | 385 | $ | 2,872 | ||||
Total purchases | $ | 456 | $ | 2,384 | ||||
Segment_Reporting_and_Geograph1
Segment Reporting and Geographic Information (Tables) | 3 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Revenues by Geographic Region | The following is a summary of revenues by geographic region, based on ship-to location, for the indicated periods (as a percentage of total revenues): | |||||||||||||
Three months ended September 30, | ||||||||||||||
(Dollar amounts in thousands) | 2013 | 2012 | ||||||||||||
Revenues: | ||||||||||||||
North America | $ | 179,395 | 28 | % | $ | 149,988 | 21 | % | ||||||
Taiwan | 117,291 | 18 | % | 276,299 | 38 | % | ||||||||
Japan | 81,412 | 12 | % | 88,715 | 12 | % | ||||||||
Europe & Israel | 121,487 | 18 | % | 59,160 | 8 | % | ||||||||
Korea | 77,278 | 12 | % | 70,247 | 10 | % | ||||||||
Rest of Asia | 81,474 | 12 | % | 76,300 | 11 | % | ||||||||
Total | $ | 658,337 | 100 | % | $ | 720,709 | 100 | % | ||||||
Revenues by Major Products | The following is a summary of revenues by major products for the indicated periods (as a percentage of total revenues): | |||||||||||||
Three months ended September 30, | ||||||||||||||
(Dollar amounts in thousands) | 2013 | 2012 | ||||||||||||
Revenues: | ||||||||||||||
Defect inspection | $ | 343,163 | 52 | % | $ | 388,488 | 54 | % | ||||||
Metrology | 132,982 | 20 | % | 142,482 | 20 | % | ||||||||
Service | 156,597 | 24 | % | 146,631 | 20 | % | ||||||||
Other | 25,595 | 4 | % | 43,108 | 6 | % | ||||||||
Total | $ | 658,337 | 100 | % | $ | 720,709 | 100 | % | ||||||
Long-Lived Assets by Geographic Region | Long-lived assets by geographic region as of the dates indicated below were as follows: | |||||||||||||
(In thousands) | As of | As of | ||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||
Long-lived assets: | ||||||||||||||
United States | $ | 224,488 | $ | 215,136 | ||||||||||
Europe | 46,689 | 49,556 | ||||||||||||
Israel | 30,575 | 28,374 | ||||||||||||
Singapore | 44,848 | 44,957 | ||||||||||||
Rest of Asia | 11,155 | 9,736 | ||||||||||||
Total | $ | 357,755 | $ | 347,759 | ||||||||||
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | ||
Fair Value Measurements | ||||
Cash excluded from fair value measurement | $176,300,000 | $125,500,000 | ||
Time deposits excluded from fair value measurement | 20,713,000 | [1] | 43,413,000 | [1] |
Total | ||||
Fair Value Measurements | ||||
Cash Equivalents and Marketable Securities Fair Value Disclosure | 2,754,858,000 | [2] | 2,750,011,000 | [3] |
Derivative assets | 1,185,000 | 4,016,000 | ||
Executive Deferred Savings Plan, Assets | ||||
Executive Deferred Savings Plan, other non-current assets | 147,926,000 | 136,461,000 | ||
Total Financial Assets | 2,903,969,000 | [2] | 2,890,488,000 | [3] |
Derivative liabilities | -1,445,000 | -2,173,000 | ||
Executive Deferred Savings Plan, Liabilities | ||||
Executive Deferred Savings Plan, other current liabilities | -148,282,000 | -137,849,000 | ||
Total Financial Liabilities | -149,727,000 | -140,022,000 | ||
Total | Money market and other | ||||
Fair Value Measurements | ||||
Cash Equivalents | 685,074,000 | 817,608,000 | ||
Total | U.S. Treasury securities | ||||
Fair Value Measurements | ||||
Marketable securities | 147,236,000 | 93,787,000 | ||
Total | U.S. Government agency securities | ||||
Fair Value Measurements | ||||
Marketable securities | 684,749,000 | 598,031,000 | ||
Total | Municipal securities | ||||
Fair Value Measurements | ||||
Marketable securities | 104,533,000 | 103,455,000 | ||
Total | Corporate debt securities | ||||
Fair Value Measurements | ||||
Cash Equivalents | 27,600,000 | 3,800,000 | ||
Marketable securities | 1,070,336,000 | 1,099,525,000 | ||
Total | Sovereign securities | ||||
Fair Value Measurements | ||||
Marketable securities | 33,202,000 | 33,805,000 | ||
Total | Equity securities | ||||
Fair Value Measurements | ||||
Marketable securities | 2,128,000 | |||
Level 1 | ||||
Fair Value Measurements | ||||
Cash Equivalents and Marketable Securities Fair Value Disclosure | 1,515,438,000 | [2] | 1,522,985,000 | [3] |
Derivative assets | 0 | 0 | ||
Executive Deferred Savings Plan, Assets | ||||
Executive Deferred Savings Plan, other non-current assets | 102,112,000 | 96,180,000 | ||
Total Financial Assets | 1,617,550,000 | [2] | 1,619,165,000 | [3] |
Derivative liabilities | 0 | 0 | ||
Executive Deferred Savings Plan, Liabilities | ||||
Executive Deferred Savings Plan, other current liabilities | -102,280,000 | -97,570,000 | ||
Total Financial Liabilities | -102,280,000 | -97,570,000 | ||
Level 1 | Money market and other | ||||
Fair Value Measurements | ||||
Cash Equivalents | 685,074,000 | 817,608,000 | ||
Level 1 | U.S. Treasury securities | ||||
Fair Value Measurements | ||||
Marketable securities | 147,236,000 | 93,787,000 | ||
Level 1 | U.S. Government agency securities | ||||
Fair Value Measurements | ||||
Marketable securities | 672,502,000 | 598,031,000 | ||
Level 1 | Municipal securities | ||||
Fair Value Measurements | ||||
Marketable securities | 0 | 0 | ||
Level 1 | Corporate debt securities | ||||
Fair Value Measurements | ||||
Cash Equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Level 1 | Sovereign securities | ||||
Fair Value Measurements | ||||
Marketable securities | 8,498,000 | 13,559,000 | ||
Level 1 | Equity securities | ||||
Fair Value Measurements | ||||
Marketable securities | 2,128,000 | |||
Level 2 | ||||
Fair Value Measurements | ||||
Cash Equivalents and Marketable Securities Fair Value Disclosure | 1,239,420,000 | [2] | 1,227,026,000 | [3] |
Derivative assets | 1,185,000 | 4,016,000 | ||
Executive Deferred Savings Plan, Assets | ||||
Executive Deferred Savings Plan, other non-current assets | 45,814,000 | 40,281,000 | ||
Total Financial Assets | 1,286,419,000 | [2] | 1,271,323,000 | [3] |
Derivative liabilities | -1,445,000 | -2,173,000 | ||
Executive Deferred Savings Plan, Liabilities | ||||
Executive Deferred Savings Plan, other current liabilities | -46,002,000 | -40,279,000 | ||
Total Financial Liabilities | -47,447,000 | -42,452,000 | ||
Level 2 | Money market and other | ||||
Fair Value Measurements | ||||
Cash Equivalents | 0 | 0 | ||
Level 2 | U.S. Treasury securities | ||||
Fair Value Measurements | ||||
Marketable securities | 0 | 0 | ||
Level 2 | U.S. Government agency securities | ||||
Fair Value Measurements | ||||
Marketable securities | 12,247,000 | 0 | ||
Level 2 | Municipal securities | ||||
Fair Value Measurements | ||||
Marketable securities | 104,533,000 | 103,455,000 | ||
Level 2 | Corporate debt securities | ||||
Fair Value Measurements | ||||
Cash Equivalents | 27,600,000 | 3,800,000 | ||
Marketable securities | 1,070,336,000 | 1,099,525,000 | ||
Level 2 | Sovereign securities | ||||
Fair Value Measurements | ||||
Marketable securities | 24,704,000 | 20,246,000 | ||
Level 2 | Equity securities | ||||
Fair Value Measurements | ||||
Marketable securities | $0 | |||
[1] | Time deposits excluded from fair value measurements. | |||
[2] | Excludes cash of $176.3 million held in operating accounts and time deposits of $20.7 million as of SeptemberB 30, 2013. | |||
[3] | Excludes cash of $125.5 million held in operating accounts and time deposits of $43.4 million as of JuneB 30, 2013. |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | ||
Accounts receivable, net: | |||||
Accounts receivable, gross | $462,766 | $546,745 | |||
Allowance for doubtful accounts | -22,092 | -22,135 | |||
Accounts receivable, net | 440,674 | 524,610 | |||
Inventories: | |||||
Customer service parts | 182,560 | 180,749 | |||
Raw materials | 254,902 | 229,233 | |||
Work-in-process | 170,104 | 176,704 | |||
Finished goods | 52,710 | 47,762 | |||
Inventories | 660,276 | 634,448 | |||
Other current assets: | |||||
Prepaid expenses | 37,146 | 31,997 | |||
Prepaid income taxes | 57,764 | 25,825 | |||
Other current assets | 15,554 | 17,217 | |||
Other current assets, total | 110,464 | 75,039 | |||
Land, property and equipment, net: | |||||
Land, property and equipment, gross | 846,762 | 828,822 | |||
Less: accumulated depreciation and amortization | -526,925 | -523,541 | |||
Land, property and equipment, net | 319,837 | 305,281 | |||
Other non-current assets: | |||||
Executive Deferred Savings Plan (1) | 147,926 | [1] | 136,461 | [1] | |
Deferred tax assets - long-term | 87,573 | 114,833 | |||
Other | 16,900 | 18,129 | |||
Other non-current assets, total | 252,399 | 269,423 | |||
Other current liabilities: | |||||
Warranty | 37,314 | 42,603 | |||
Executive Deferred Savings Plan (1) | 148,282 | [1] | 137,849 | [1] | |
Compensation and benefits | 156,418 | 195,793 | |||
Income taxes payable | 14,141 | 11,076 | |||
Interest payable | 21,706 | 8,769 | |||
Other accrued expenses | 122,239 | 130,959 | |||
Other current liabilities, total | 500,100 | 527,049 | |||
Accumulated other comprehensive income (loss) | |||||
Currency translation adjustments, beginning balance | -22,467 | ||||
Currency translation adjustments | |||||
Currency translation adjustments, other comprehensive income (loss) before reclassifications | 5,110 | ||||
Currency translation adjustments, amounts reclassified from AOCI | 0 | ||||
Currency translation adjustments, taxes (benefits) | -1,315 | -1,677 | |||
Net change related to currency translation adjustments | 3,795 | 4,945 | |||
Currency translation adjustments, ending balance | -18,672 | ||||
Unrealized gains (losses) on available-for-sale investments, beginning balance | -602 | ||||
Unrealized gains (losses) on available-for-sale investments | |||||
Unrealized gains (losses) on available-for-sale investments, other comprehensive income (loss) before reclassifications | 4,139 | ||||
Unrealized gains (losses) on available-for-sale investments, amounts reclassified from AOCI | -234 | -309 | |||
Unrealized gains (losses) on available-for-sale investments, taxes (benefits) | -1,342 | -1,226 | |||
Net change related to available-for-sale securities | 2,563 | 2,382 | |||
Unrealized gains (losses) on available-for-sale investments, ending balance | 1,961 | ||||
Unrealized gains (losses) on cash flow hedges, beginning balance | 1,594 | ||||
Unrealized gains (losses) on cash flow hedges | |||||
Unrealized gains (losses) on cash flow hedges, other comprehensive income (loss) before reclassifications | -291 | -241 | |||
Unrealized gains (losses) on cash flow hedges, amounts reclassified from AOCI | -2,516 | 1,092 | |||
Unrealized gains (losses) on cash flow hedges, taxes (benefits) | 1,005 | -303 | |||
Net change related to cash flow hedges | -1,802 | 548 | |||
Unrealized gains (losses) on cash flow hedges, ending balance | -208 | ||||
Unrealized gains (losses) on defined benefit plans, beginning balance | -15,171 | ||||
Unrealized gains (losses) on defined benefit plans | |||||
Unrealized gains (losses) on defined benefit plans, other comprehensive income (loss) before reclassifications | 313 | ||||
Unrealized Gains (Losses) on Defined Benefit Plans, Amounts Reclassified from AOCI | 0 | ||||
Unrealized gains (losses) on defined benefit plans, taxes (benefits) | -114 | ||||
Unrealized gains (losses) on defined benefit plans, other comprehensive income (loss) | 199 | 157 | |||
Unrealized gains (losses) on defined benefit plans, ending balance | -14,972 | ||||
Total, beginning balance | -36,646 | ||||
Total | |||||
Total, other comprehensive income (loss) before reclassifications | 9,271 | ||||
Total, amounts reclassified from AOCI | -2,750 | ||||
Total, taxes (benefits) | -1,766 | ||||
Other comprehensive income | 4,755 | 8,032 | |||
Total, ending balance | -31,891 | ||||
Revenues | |||||
Unrealized gains (losses) on cash flow hedges | |||||
Unrealized gains (losses) on cash flow hedges, amounts reclassified from AOCI | -2,450 | ||||
Costs of revenues | |||||
Unrealized gains (losses) on cash flow hedges | |||||
Unrealized gains (losses) on cash flow hedges, amounts reclassified from AOCI | -66 | ||||
Interest income and other, net | |||||
Unrealized gains (losses) on available-for-sale investments | |||||
Unrealized gains (losses) on available-for-sale investments, amounts reclassified from AOCI | -234 | ||||
Land | |||||
Land, property and equipment, net: | |||||
Land, property and equipment, gross | 41,834 | 41,850 | |||
Buildings and leasehold improvements | |||||
Land, property and equipment, net: | |||||
Land, property and equipment, gross | 276,893 | 272,920 | |||
Machinery and equipment | |||||
Land, property and equipment, net: | |||||
Land, property and equipment, gross | 487,874 | 476,747 | |||
Office furniture and fixtures | |||||
Land, property and equipment, net: | |||||
Land, property and equipment, gross | 20,837 | 20,701 | |||
Construction-in-process | |||||
Land, property and equipment, net: | |||||
Land, property and equipment, gross | $19,324 | $16,604 | |||
[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 the quarter following a participantbs retirement or termination of employment, 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 SeptemberB 30, 2013, 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 Sheet. |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | 3 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | |||
Marketable Securities | |||||
Amortized Cost | $2,751,885,000 | $2,750,942,000 | |||
Gross Unrealized Gains | 4,619,000 | 3,071,000 | |||
Gross Unrealized Losses | -1,646,000 | -4,002,000 | |||
Fair Value | 2,754,858,000 | 2,750,011,000 | |||
Add: Time deposits | 20,713,000 | [1] | 43,413,000 | [1] | |
Less: Cash Equivalents, Amortized Cost | 728,645,000 | 859,933,000 | |||
Cash Equivalents, Gross Unrealized Gains | 0 | 0 | |||
Cash Equivalents, Gross Unrealized Losses | 0 | 0 | |||
Less: Cash Equivalents, Fair Value | 728,645,000 | 859,933,000 | |||
Marketable Securities, Gross Unrealized Gains | 4,619,000 | 3,071,000 | |||
Marketable Securities, Gross Unrealized Losses | -1,646,000 | -4,002,000 | |||
Contractual Maturities of Securities [Abstract] | |||||
Due within one year, Amortized Cost | 478,400,000 | ||||
Due after one year through three years, Amortized Cost | 1,565,553,000 | ||||
Marketable Securities, Amortized Cost | 2,043,953,000 | 1,934,422,000 | |||
Due within one year, Fair Value | 480,079,000 | ||||
Due after one year through three years, Fair Value | 1,566,847,000 | ||||
Marketable Securities, Fair Value | 2,046,926,000 | 1,933,491,000 | |||
Available-for-sale Securities, Gross Realized Gains | 300,000 | 300,000 | |||
U.S. Treasury securities | |||||
Marketable Securities | |||||
Amortized Cost | 147,198,000 | 93,940,000 | |||
Gross Unrealized Gains | 100,000 | 53,000 | |||
Gross Unrealized Losses | -62,000 | -206,000 | |||
Fair Value | 147,236,000 | 93,787,000 | |||
U.S. Government agency securities | |||||
Marketable Securities | |||||
Amortized Cost | 684,400,000 | 598,471,000 | |||
Gross Unrealized Gains | 754,000 | 569,000 | |||
Gross Unrealized Losses | -405,000 | -1,009,000 | |||
Fair Value | 684,749,000 | 598,031,000 | |||
Municipal securities | |||||
Marketable Securities | |||||
Amortized Cost | 104,743,000 | 103,686,000 | |||
Gross Unrealized Gains | 60,000 | 71,000 | |||
Gross Unrealized Losses | -270,000 | -302,000 | |||
Fair Value | 104,533,000 | 103,455,000 | |||
Corporate debt securities | |||||
Marketable Securities | |||||
Amortized Cost | 1,095,912,000 | 1,103,438,000 | |||
Gross Unrealized Gains | 2,919,000 | 2,353,000 | |||
Gross Unrealized Losses | -895,000 | -2,466,000 | |||
Fair Value | 1,097,936,000 | 1,103,325,000 | |||
Money market and other | |||||
Marketable Securities | |||||
Amortized Cost | 685,074,000 | 817,608,000 | |||
Gross Unrealized Gains | 0 | 0 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 685,074,000 | 817,608,000 | |||
Sovereign securities | |||||
Marketable Securities | |||||
Amortized Cost | 33,198,000 | 33,799,000 | |||
Gross Unrealized Gains | 18,000 | 25,000 | |||
Gross Unrealized Losses | -14,000 | -19,000 | |||
Fair Value | 33,202,000 | 33,805,000 | |||
Equity securities | |||||
Marketable Securities | |||||
Amortized Cost | 1,360,000 | ||||
Gross Unrealized Gains | 768,000 | ||||
Gross Unrealized Losses | 0 | ||||
Fair Value | $2,128,000 | ||||
[1] | Time deposits excluded from fair value measurements. |
Marketable_Securities_Continuo
Marketable Securities (Continuous Unrealized Loss Position) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Investments in an Unrealized Loss Position | ||
Fair Value | $728,638 | |
Gross Unrealized Losses, less than 12 months | -1,646 | [1] |
Continuous loss position not exceeding this period | 12 months | |
U.S. Treasury securities | ||
Investments in an Unrealized Loss Position | ||
Fair Value | 30,627 | |
Gross Unrealized Losses, less than 12 months | -62 | [1] |
U.S. Government agency securities | ||
Investments in an Unrealized Loss Position | ||
Fair Value | 248,191 | |
Gross Unrealized Losses, less than 12 months | -405 | [1] |
Municipal securities | ||
Investments in an Unrealized Loss Position | ||
Fair Value | 61,180 | |
Gross Unrealized Losses, less than 12 months | -270 | [1] |
Corporate debt securities | ||
Investments in an Unrealized Loss Position | ||
Fair Value | 367,513 | |
Gross Unrealized Losses, less than 12 months | -895 | [1] |
Sovereign securities | ||
Investments in an Unrealized Loss Position | ||
Fair Value | 21,127 | |
Gross Unrealized Losses, less than 12 months | ($14) | [1] |
[1] | Of the total gross unrealized losses, the amount of total gross unrealized losses related to investments that had been in a continuous loss position for 12 months or more was immaterial. |
Goodwill_and_Purchased_Intangi2
Goodwill and Purchased Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill | ||
Gross goodwill balance | $604,126 | $604,205 |
Accumulated impairment losses | -277,570 | -277,570 |
Net goodwill balance | $326,556 | $326,635 |
Goodwill_and_Purchased_Intangi3
Goodwill and Purchased Intangible Assets (Purchased Intangible Assets) (Details) (USD $) | 3 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2014 (remaining 9 months) | $10,875,000 | ||
2015 | 12,752,000 | ||
2016 | 5,564,000 | ||
2017 | 806,000 | ||
2018 | 25,000 | ||
Components of purchased intangible assets | |||
Gross Carrying Amount | 282,080,000 | 282,080,000 | |
Accumulated Amortization and Impairment | 252,058,000 | 247,565,000 | |
Total | 30,022,000 | 34,515,000 | |
Other intangible assets, amortization expense | 4,500,000 | 7,200,000 | |
Existing technology | |||
Components of purchased intangible assets | |||
Gross Carrying Amount | 133,659,000 | 133,659,000 | |
Accumulated Amortization and Impairment | 120,977,000 | 119,106,000 | |
Total | 12,682,000 | 14,553,000 | |
Existing technology | Minimum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 4 years | ||
Existing technology | Maximum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 7 years | ||
Patents | |||
Components of purchased intangible assets | |||
Gross Carrying Amount | 57,648,000 | 57,648,000 | |
Accumulated Amortization and Impairment | 51,904,000 | 51,068,000 | |
Total | 5,744,000 | 6,580,000 | |
Patents | Minimum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 6 years | ||
Patents | Maximum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 13 years | ||
Trade name/Trademark | |||
Components of purchased intangible assets | |||
Gross Carrying Amount | 19,893,000 | 19,893,000 | |
Accumulated Amortization and Impairment | 16,303,000 | 15,928,000 | |
Total | 3,590,000 | 3,965,000 | |
Trade name/Trademark | Minimum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 4 years | ||
Trade name/Trademark | Maximum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 10 years | ||
Customer relationships | |||
Components of purchased intangible assets | |||
Gross Carrying Amount | 54,680,000 | 54,680,000 | |
Accumulated Amortization and Impairment | 46,674,000 | 45,263,000 | |
Total | 8,006,000 | 9,417,000 | |
Customer relationships | Minimum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 6 years | ||
Customer relationships | Maximum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 7 years | ||
Other | |||
Components of purchased intangible assets | |||
Gross Carrying Amount | 16,200,000 | 16,200,000 | |
Accumulated Amortization and Impairment | 16,200,000 | 16,200,000 | |
Total | $0 | $0 | |
Other | Minimum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 0 years | ||
Other | Maximum | |||
Components of purchased intangible assets | |||
Range of Useful Lives | 1 year |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2008 | Sep. 30, 2013 | Jun. 30, 2013 |
Long-term Debt | |||
Principal amount | $750 | ||
Stated interest rate | 6.90% | ||
Debt Instruments Maturity Date | 2018 | ||
Effective interest rate | 7.00% | ||
Discount on debt | 5.4 | ||
Debt Instrument, Frequency of Periodic Payment | semi-annually | ||
Offer to repurchase senior notes, percent of principal amount | 101.00% | ||
Fair value | $879.20 | $872.30 |
Equity_and_LongTerm_Incentive_2
Equity and Long-Term Incentive Compensation Plans (Equity Incentive Program) (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | |
Cash-based long-term incentive plan, committed amount | $62.90 | |
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Balances as of June 30, 2013 | 6,696,000 | [1] |
Restricted stock units granted | -680,000 | [2],[3] |
Restricted stock units canceled | 20,000 | [2] |
Options canceled/expired/forfeited | 27,000 | |
Plan shares expired | -18,000 | [4] |
Balances as of September 30, 2013 | 5,517,000 | [1] |
Stock options, vesting period | 5 years | |
Stock options, maximum exercise period | 7 years | |
Share Reserve Multiplier (1.8x) | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Restricted stock units granted | -1,224,000 | [5],[6] |
Restricted stock units canceled | 36,000 | [5] |
Two Thousand Four Plan | ||
Equity incentive plan, maximum number of shares for issuances | 32,000,000 | |
Percent of fair market value on grant date | 100.00% | |
Senior Management | Restricted Stock Units | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Restricted stock units granted | -300,000 | |
Senior Management | Restricted Stock Units - 1.8x Multiple [Member] | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Restricted stock units granted | -600,000 | |
Stock Option Plans Before July 1, 2005 | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Stock options, maximum exercise period | 10 years | |
Outside Director Option Plan | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Balances as of September 30, 2013 | 1,700,000 | |
[1] | Includes shares available for issuance under the 2004 Plan, as well as under the Companybs 1998 Outside Director Option Plan (the bOutside Director Planb), which only permits the issuance of stock options to the Companybs non-employee members of the Board of Directors. As of SeptemberB 30, 2013, 1.7 million shares were available for grant under the Outside Director Plan. | |
[2] | Share numbers reflect actual shares subject to awarded restricted stock units. Under the terms of the 2004 Plan, each of the share numbers presented in this column is multiplied by 1.8 to calculate the impact on the share reserve under the 2004 Plan. | |
[3] | Includes 0.3 million restricted stock units granted to senior management during the three months ended SeptemberB 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of SeptemberB 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. | |
[4] | Represents the portion of shares listed as bOptions canceled/expired/forfeitedb above that were issued under the Companybs equity incentive plans other than the 2004 Plan or the Outside Director Plan. Because the Company is only currently authorized to issue equity awards under the 2004 Plan and the Outside Director Plan, any equity awards that are canceled, expire or are forfeited under any other Company equity incentive plans do not result in additional shares being available to the Company for future grant. | |
[5] | The number of restricted stock units provided in this row reflects the application of the 1.8x multiple described above. | |
[6] | Includes 0.3 million (reflected as 0.6 million shares in this table due to the application of the 1.8x multiple described above) restricted stock units granted to senior management during the three months ended SeptemberB 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of SeptemberB 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, granted during such fiscal period, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. |
Equity_and_LongTerm_Incentive_3
Equity and Long-Term Incentive Compensation Plans (Compensation Expense) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 |
Stock-based compensation expense | |||
Stock-based compensation capitalized as inventory | $8,382 | $8,098 | |
Stock-based compensation expense | 19,219 | 18,984 | |
Costs of revenues | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 3,177 | 3,275 | |
Engineering, research and development | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 5,408 | 5,463 | |
Selling, general and administrative | |||
Stock-based compensation expense | |||
Stock-based compensation expense | $10,634 | $10,246 |
Equity_and_LongTerm_Incentive_4
Equity and Long-Term Incentive Compensation Plans (Stock Options Activities) (Details) (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Options Activity | ||
Weighted-average remaining contractual terms for total options outstanding under all plans and for total options vested and exercisable under all plans (in years) | 0 years 8 months | |
Aggregate intrinsic values for total options outstanding under all plans and for total options vested and exercisable under all plans | $10,600,000 | |
Stock Options Activity Rollforward | ||
Outstanding stock options as of June 30, 2013, shares | 1,663 | |
Granted, shares | 0 | |
Exercised, shares | -820 | |
Canceled/expired/forfeited, shares | -27 | |
Outstanding stock options as of September 30, 2013, shares | 816 | |
Outstanding stock options as of June 30, 2013, weighted-average exercise price | $48.97 | |
Stock options granted, weighted-average exercise price | $0 | |
Stock options exercised, weighted-average exercise price | $49.98 | |
Stock options canceled/expired/forfeited, weighted-average exercise price | $50.42 | |
Outstanding stock options as of September 30, 2013, weighted-average exercise price | $47.92 | |
Options Exercised [Abstract] | ||
Total intrinsic value of options exercised | 7,883,000 | 3,927,000 |
Total cash received from employees and non-employee Board members as a result of stock option exercises | 41,047,000 | 23,250,000 |
Tax benefits realized by the Company in connection with these exercises | $2,617,000 | $1,294,000 |
Equity_and_LongTerm_Incentive_5
Equity and Long-Term Incentive Compensation Plans (Restricted Stock Unit Activities) (Details) (USD $) | 3 Months Ended | 60 Months Ended | 15 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||
Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Unit, Service-Based | Restricted Stock Unit, Service-Based | Restricted Stock Unit, Service-Based | Restricted Stock Unit, Service-Based | Restricted Stock Unit, Service-Based | Restricted Stock Unit, Performance-Based And Service-Based | Restricted Stock Unit, Performance-Based And Service-Based | Restricted Stock Unit, Performance-Based And Service-Based | Two Thousand Four Plan | Senior Management | Share Reserve Multiplier (1.8x) | |||||
Installments | Second anniversary | Fourth anniversary | Installments | First anniversary | Second anniversary | Third anniversary | Fourth anniversary | Installments | Third anniversary | Fourth anniversary | Restricted Stock Units | ||||||||
Restricted Stock Unit Activity | |||||||||||||||||||
Unrecognized stock-based compensation balance | $116,800,000 | ||||||||||||||||||
Estimated weighted-average amortization period | 1 year 9 months | ||||||||||||||||||
2004 Plan shares reserve multiplier | 1.8 | ||||||||||||||||||
Tax benefits realized by the Company in connection with vested and released restricted stock units | 40,606,000 | 17,871,000 | |||||||||||||||||
Intrinsic Value, Restricted Stock Units | $229,000,000 | ||||||||||||||||||
Restricted Stock Units Activity Rollforward | |||||||||||||||||||
Outstanding restricted stock units as of June 30, 2013, shares | 5,374,000 | [1] | |||||||||||||||||
Granted, shares | 680,000 | [1],[2] | 300,000 | 1,224,000 | [3],[4] | ||||||||||||||
Vested and released, shares | -1,457,000 | [1] | |||||||||||||||||
Withheld for taxes, shares | -814,000 | [1] | |||||||||||||||||
Forfeited, shares | -20,000 | [1] | -36,000 | [4] | |||||||||||||||
Outstanding restricted stock units as of September 30, 2013, shares | 3,763,000 | [1],[3] | |||||||||||||||||
Outstanding restricted stock units as of June 30, 2013, weighted-average grant date fair value | $34.39 | ||||||||||||||||||
Restricted stock units granted, weighted-average grant date fair value | $53.02 | $51.65 | |||||||||||||||||
Restricted stock units vested and released, weighted-average grant date fair value | $32.46 | ||||||||||||||||||
Restricted stock units withheld for taxes, weighted-average grant date fair value | $32.46 | ||||||||||||||||||
Restricted stock units forfeited, weighted-average grant date fair value | $33.56 | ||||||||||||||||||
Outstanding restricted stock units as of September 30, 2013, weighted-average grant date fair value | $38.93 | ||||||||||||||||||
Number of equal vesting installments | 2 | 4 | 2 | ||||||||||||||||
Percentage of equal vesting installments | 50.00% | 50.00% | 25.00% | 25.00% | 25.00% | 25.00% | 50.00% | 50.00% | |||||||||||
[1] | Share numbers reflect actual shares subject to awarded restricted stock units. Under the terms of the 2004 Plan, each of the share numbers presented in this column is multiplied by 1.8 to calculate the impact on the share reserve under the 2004 Plan. | ||||||||||||||||||
[2] | Includes 0.3 million restricted stock units granted to senior management during the three months ended SeptemberB 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of SeptemberB 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. | ||||||||||||||||||
[3] | Includes 0.3 million (reflected as 0.6 million shares in this table due to the application of the 1.8x multiple described above) restricted stock units granted to senior management during the three months ended SeptemberB 30, 2013 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of SeptemberB 30, 2013, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, granted during such fiscal period, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied. | ||||||||||||||||||
[4] | The number of restricted stock units provided in this row reflects the application of the 1.8x multiple described above. |
Equity_and_LongTerm_Incentive_6
Equity and Long-Term Incentive Compensation Plans (Fair Value Assumptions) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, except Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2010 |
ESPP maximum employee subscription rate | 10.00% | ||
Employee stock purchase plan offering period | 6 months | ||
Share-based compensation arrangement, discount from market price, lesser of commencement of offering period or purchase date | 85.00% | ||
ESPP maximum annual share replenishment | 2 | ||
Number of ESPP shares available for future issuance | 1.7 | ||
Share-based Compensation Arrangement, Fair Value Assumptions and Methodology [Abstract] | |||
Expected stock price volatility | 29.10% | 30.20% | |
Risk-free interest rate | 0.10% | 0.10% | |
Dividend yield | 2.90% | 3.30% | |
Expected life of options | 6 months | 6 months | |
Employee Stock Purchase Plan Additional Information [Abstract] | |||
Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP | $786 | $606 | |
Weighted-average fair value per share based on Black-Scholes model | $11.80 | $10.54 |
Equity_and_LongTerm_Incentive_7
Equity and Long-Term Incentive Compensation Plans (Cash Long-Term Incentive Plan) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Vesting_Installments | |
Cash Long-Term Incentive Plan | |
Cash-based long-term incentive plan, approved amount | $1.80 |
Cash-based long-term incentive plan, committed amount | 62.9 |
Cash Long-Term Incentive Plan | |
Cash Long-Term Incentive Plan | |
Cash long-term incentive plan, number of equal vesting installments | 4 |
Cash long-term incentive plan, percentage of equal vesting installments | 25.00% |
Cash long-term incentive plan, vesting period | 4 years |
Cash long-term incentive program, compensation expense | 4.1 |
Cash long-term incentive plan, unrecognized compensation balance | $47.80 |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 08, 2012 |
November 2012 shares authorized | |||
Stock Repurchase Program | |||
Authorized shares to be repurchased | 80,800,000 | 8,000,000 | |
Shares available for repurchase | 4,800,000 | ||
Number of shares of common stock repurchased | 1,038,000 | 1,361,000 | |
Total cost of repurchases | $60,504 | $68,317 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 09, 2013 | Jun. 30, 2013 |
Net Income Per Share | ||||
Net income | $111,197 | $135,367 | ||
Denominator: | ||||
Weighted-average shares-basic, excluding unvested restricted stock units | 165,886 | 166,531 | ||
Effect of dilutive options and restricted stock units | 2,848 | 3,293 | ||
Weighted-average shares-diluted | 168,734 | 169,824 | ||
Basic net income per share | $0.67 | $0.81 | ||
Diluted net income per share | $0.66 | $0.80 | ||
Anti-dilutive securities excluded from the computation of diluted net income per share | 30 | 1,717 | ||
Payments of dividends | $74,617 | $66,629 | ||
Common stock dividends per share authorized | $0.45 | $0.40 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Operating Loss Carryforwards [Line Items] | ||
Income before income taxes | $139,864,000 | $176,542,000 |
Provision for income taxes | 28,667,000 | 41,175,000 |
Effective tax rate | 20.50% | 23.30% |
Estimated effective tax rate for the fiscal year ending June 30, 2013 | 22.90% | |
Income tax expense, effective tax rate comparison, related to deductions for employee stock activity | -2,000,000 | |
Income tax expense, effective rate comparison, related to a non-taxable increase in the Executive Deferred Savings Plan | -2,700,000 | |
Potential unrecognized tax benefits that may be recognized during next 12 months | 7,200,000 | |
Jurisdictions With Tax Rates Lower Than Statutory Tax Rate [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Decrease in income taxes | -2,300,000 | |
U.S. Federal Research Tax Credit [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Decrease in income taxes | ($1,200,000) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Receivables Sold Under Factoring Agreements | ||
Receivables sold under factoring agreements | $45,882,000 | $48,534,000 |
Changes in Product Warranty Accrual | ||
Beginning balance | 42,603,000 | 46,496,000 |
Accruals for warranties issued during the period | 9,308,000 | 10,646,000 |
Changes in liability related to pre-existing warranties | -3,384,000 | 2,352,000 |
Settlements made during the period | -11,213,000 | -13,303,000 |
Ending balance | 37,314,000 | 46,191,000 |
Operating Leases, Future Minimum Payments Due [Abstract] | ||
2014 (remaining 9 months) | 5,977,000 | |
2015 | 6,330,000 | |
2016 | 4,906,000 | |
2017 | 3,762,000 | |
2018 | 2,545,000 | |
2019 and thereafter | 1,181,000 | |
Total minimum lease payments | 24,701,000 | |
Commitments and Contingencies | ||
Open inventory purchase commitments | 303,400,000 | |
Outstanding inventory purchase commitment | 12 months | |
Guarantee arrangements to fund customs guarantees for VAT and other operating requirements | 26,000,000 | |
Outstanding guarantee arrangements to fund customs guarantees for VAT and other operating requirements | 24,100,000 | |
Operating leases, rent expense | 2,100,000 | 2,200,000 |
Standard warranty coverage in hours per week | 40 hours | |
Standard warranty coverage | 12 months | |
Cash-based long-term incentive plan, committed amount | $62,900,000 | |
Cash Long-Term Incentive Plan | ||
Commitments and Contingencies | ||
Cash long-term incentive plan, number of equal vesting installments | 4 | |
Cash long-term incentive plan, percentage of equal vesting installments | 25.00% | |
Cash long-term incentive plan, vesting period | 4 years |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 |
Location in Financial Statements | |||
Gains in accumulated OCI on derivatives (effective portion) | ($291) | ($241) | |
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 2,516 | -1,092 | |
Outstanding Notional Amounts of Hedge Contracts | |||
Cash flow hedge contracts, purchase | 9,000 | 14,641 | |
Cash flow hedge contracts, sell | 60,234 | 35,178 | |
Other foreign currency hedge contracts, purchase | 111,360 | 99,175 | |
Other foreign currency hedge contracts, sell | 68,419 | 97,901 | |
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | |||
Asset derivatives fair value | 1,185 | 4,016 | |
Liability derivatives fair value | 1,445 | 2,173 | |
Other Current Assets | |||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | |||
Asset derivatives fair value | 1,185 | 4,016 | |
Other Current Liabilities | |||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | |||
Liability derivatives fair value | 1,445 | 2,173 | |
Derivatives Designated as Hedging Instruments | |||
Derivative Instruments | |||
Hedge contracts maximum maturity | 13 months | ||
Location in Financial Statements | |||
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 2,516 | -1,092 | |
Derivatives Designated as Hedging Instruments | Other Current Assets | |||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | |||
Foreign exchange contracts, other current assets | 282 | 362 | |
Asset derivatives fair value | 282 | 362 | |
Derivatives Designated as Hedging Instruments | Other Current Liabilities | |||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | |||
Foreign exchange contracts, other current liabilities | 505 | 384 | |
Liability derivatives fair value | 505 | 384 | |
Not Designated as Hedging Instrument [Member] | Other Current Assets | |||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | |||
Foreign exchange contracts, other current assets | 903 | 3,654 | |
Asset derivatives fair value | 903 | 3,654 | |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities | |||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | |||
Foreign exchange contracts, other current liabilities | 940 | 1,789 | |
Liability derivatives fair value | 940 | 1,789 | |
Revenues | Derivatives Designated as Hedging Instruments | |||
Location in Financial Statements | |||
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 2,450 | -491 | |
Costs of revenues | Derivatives Designated as Hedging Instruments | |||
Location in Financial Statements | |||
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 66 | -601 | |
Interest income and other, net | Derivatives Designated as Hedging Instruments | |||
Location in Financial Statements | |||
Gains recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | -18 | 51 | |
Interest income and other, net | Not Designated as Hedging Instrument [Member] | |||
Location in Financial Statements | |||
Gains (losses) recognized in income | 2,626 | 673 | |
Accumulated OCI | Derivatives Designated as Hedging Instruments | |||
Location in Financial Statements | |||
Gains in accumulated OCI on derivatives (effective portion) | ($291) | ($241) | |
Cash Flow Hedging [Member] | Derivatives Designated as Hedging Instruments | |||
Derivative Instruments | |||
Derivative maximum maturity, cash flow hedges | 18 months |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | $2,484 | ($962) |
Amount reclassified to income | -2,516 | 1,092 |
Net change | -291 | -241 |
Ending balance | ($323) | ($111) |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Offsetting of Derivative Assets and Liabilities) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives - Assets, Gross Amounts of Recognized Assets | $1,185 | $4,016 |
Derivatives - Assets, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivatives - Assets, Net Amount Presented in the Consolidated Balance Sheets | 1,185 | 4,016 |
Derivatives - Assets, Financial Instruments | -1,139 | -1,520 |
Derivatives - Assets, Cash Collateral Received | 0 | 0 |
Derivatives - Assets, Net Amount | 46 | 2,496 |
Derivatives - Liabilities, Gross Amounts of Recognized Assets | -1,445 | -2,173 |
Derivatives - Liabilities, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivatives - Liabilities, Net Amount Presented in the Consolidated Balance Sheets | -1,445 | -2,173 |
Derivatives - Liabilities, Financial Instruments | 1,139 | 1,520 |
Derivatives - Liabilities, Cash Collateral Received | 0 | 0 |
Derivatives - Liabilities, Net Amount | ($306) | ($653) |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Related Party Transactions | |||
Receivable balance from related parties | $100,000 | $900,000 | |
Total revenues | 385,000 | 2,872,000 | |
Total purchases | $456,000 | $2,384,000 |
Segment_Reporting_and_Geograph2
Segment Reporting and Geographic Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 |
Customers | Customers | Customers | |
Segment Reporting and Geographic Information | |||
Revenues | $658,337 | $720,709 | |
Segment percent of total revenues | 100.00% | 100.00% | |
Long-lived assets | 357,755 | 347,759 | |
Number of customers with significant revenue | 2 | 4 | |
Percentage of total revenues accounted for by each significant customer | 10.00% | 10.00% | |
Number of customers with significant accounts receivable balance | 4 | 2 | |
Percentage of net accounts receivable accounted for by each significant customer | 10.00% | 10.00% | |
North America | |||
Segment Reporting and Geographic Information | |||
Revenues | 179,395 | 149,988 | |
Segment percent of total revenues | 28.00% | 21.00% | |
United States | |||
Segment Reporting and Geographic Information | |||
Long-lived assets | 224,488 | 215,136 | |
Taiwan | |||
Segment Reporting and Geographic Information | |||
Revenues | 117,291 | 276,299 | |
Segment percent of total revenues | 18.00% | 38.00% | |
Japan | |||
Segment Reporting and Geographic Information | |||
Revenues | 81,412 | 88,715 | |
Segment percent of total revenues | 12.00% | 12.00% | |
Europe and Israel | |||
Segment Reporting and Geographic Information | |||
Revenues | 121,487 | 59,160 | |
Segment percent of total revenues | 18.00% | 8.00% | |
Korea | |||
Segment Reporting and Geographic Information | |||
Revenues | 77,278 | 70,247 | |
Segment percent of total revenues | 12.00% | 10.00% | |
Europe | |||
Segment Reporting and Geographic Information | |||
Long-lived assets | 46,689 | 49,556 | |
Israel | |||
Segment Reporting and Geographic Information | |||
Long-lived assets | 30,575 | 28,374 | |
Singapore | |||
Segment Reporting and Geographic Information | |||
Long-lived assets | 44,848 | 44,957 | |
Rest of Asia | |||
Segment Reporting and Geographic Information | |||
Revenues | 81,474 | 76,300 | |
Segment percent of total revenues | 12.00% | 11.00% | |
Long-lived assets | 11,155 | 9,736 | |
Defect inspection | |||
Segment Reporting and Geographic Information | |||
Revenues | 343,163 | 388,488 | |
Segment percent of total revenues | 52.00% | 54.00% | |
Metrology | |||
Segment Reporting and Geographic Information | |||
Revenues | 132,982 | 142,482 | |
Segment percent of total revenues | 20.00% | 20.00% | |
Service | |||
Segment Reporting and Geographic Information | |||
Revenues | 156,597 | 146,631 | |
Segment percent of total revenues | 24.00% | 20.00% | |
Other | |||
Segment Reporting and Geographic Information | |||
Revenues | $25,595 | $43,108 | |
Segment percent of total revenues | 4.00% | 6.00% |