FINANCIAL STATEMENT COMPONENTS

9 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheets


	As of		As of
(In thousands)	March 31, 2023		June 30, 2022
Accounts receivable, net:
Accounts receivable, gross	$	1,973,188	$	1,832,508
Allowance for credit losses	(33,121)		(20,631)
	$	1,940,067	$	1,811,877
Inventories:
Customer service parts	$	492,681	$	402,121
Raw materials	1,503,024		1,042,916
Work-in-process	575,084		451,782
Finished goods	178,954		250,070
	$	2,749,743	$	2,146,889
Other current assets:
Contract assets	$	125,019	$	114,747
Prepaid expenses	113,228		108,942
Deferred costs of revenues	112,074		124,487
Prepaid income and other taxes	37,834		89,713
Other current assets	50,576		64,248
	$	438,731	$	502,137
Land, property and equipment, net:
Land	$	72,286	$	67,846
Buildings and leasehold improvements	810,173		712,751
Machinery and equipment	970,525		819,191
Office furniture and fixtures	57,554		44,957
Construction-in-process	147,932		110,079
	2,058,470		1,754,824
Less: accumulated depreciation	(1,074,199)		(904,895)
	$	984,271	$	849,929
Other non-current assets:
Executive Deferred Savings Plan(1)	$	245,090	$	224,188

Operating lease right of use assets	201,014		126,444
Other non-current assets	171,806		133,980
	$	617,910	$	484,612
Other current liabilities:
Customer deposits	$	575,466	$	394,016
Compensation and benefits	445,828		351,924
Income taxes payable	313,317		126,964

Executive Deferred Savings Plan(1)	245,734		225,867
Interest payable	56,049		39,683
Operating lease liabilities	33,522		32,218
Other liabilities and accrued expenses	439,535		374,367
	$	2,109,451	$	1,545,039
Other non-current liabilities:
Customer deposits	$	343,691	$	204,914
Income taxes payable	317,263		367,052
Operating lease liabilities	137,811		81,369
Pension liabilities	75,716		78,525
Other non-current liabilities	127,497		150,782
	$	1,001,978	$	882,642

________________

(1)We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense (benefit) associated with changes in the EDSP liability included in selling, general and administrative (“SG&A”) expense was $13.1 million and $(18.8) million in the three months ended March 31, 2023 and 2022, respectively, and was $14.7 million and $(7.8) million during the nine months ended March 31, 2023 and 2022, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in SG&A expense was $13.1 million and $(18.7) million in the three months ended March 31, 2023 and 2022, respectively, and was $14.7 million and $(8.0) million during the nine months ended March 31, 2023 and 2022, respectively. For additional details, refer to Note 1 “Description of Business and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2022.

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 Securities		Unrealized Gains (Losses) on Derivatives		Unrealized Gains (Losses) on Defined Benefit Plans		Total
Balance as of March 31, 2023	$	(51,637)	$	(10,934)	$	51,654	$	(24,374)	$	(35,291)

Balance as of June 30, 2022	$	(43,886)	$	(15,486)	$	56,836	$	(24,935)	$	(27,471)

The effects on net income of amounts reclassified from AOCI to the Condensed Consolidated Statements of Operations for the indicated periods were as follows (in thousands; amounts in parentheses indicate debits or reductions to earnings):


AOCI Components		Three Months Ended				Nine Months Ended
	Location in the Condensed Consolidated Statement of Operations	March 31,				March 31,
		2023		2022		2023		2022
Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts	Revenues	$	1,421	$	1,600	$	31,954	$	4,868
	Costs of revenues and operating expenses	467		(329)		(8,804)		(909)
	Interest expense	936		(279)		2,810		(837)

	Net gains reclassified from AOCI	$	2,824	$	992	$	25,960	$	3,122
Unrealized gains (losses) on available-for-sale securities	Other expense (income), net	$	(250)	$	(88)	$	(831)	$	(90)

The amount reclassified out of AOCI related to our defined benefit pension plans that was recognized as a component of net periodic cost for the three months ended March 31, 2023 and 2022 was $0.4 million in both periods, and for the nine months ended March 31, 2023 and 2022 was $1.2 million and $1.1 million, respectively. For additional details, refer to Note 13 “Employee Benefit Plans” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2022.