Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities

v3.7.0.1
Derivative Instruments and Hedging Activities
9 Months Ended
Mar. 31, 2017
衍生工具和对冲活动披露[摘要]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
NOTE 14 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
权威指导要求公司认可所有衍生工具和对冲活动，包括外币兑换合同，作为资产价值的资产或负债。不符合对冲疗法的衍生产品的公允价值的变化以及任何对冲的无效部分，以其他费用（收入）确认，在凝结的合并运营陈述中净。根据指南，公司将外币远期交换和期权合同指定为某些预测外币销售和购买交易的现beplay官网ued金流。
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, the New Taiwan dollar 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 other expense (income), 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.
In October 2014, in anticipation of the issuance of the Senior Notes, the Company entered into a series of forward contracts (“Rate Lock Agreements”) to lock the benchmark rate on a portion of the Senior Notes. The objective of the Rate Lock Agreements was to hedge the risk associated with the variability in interest rates due to the changes in the benchmark rate leading up to the closing of the intended financing, on the notional amount being hedged. The Rate Lock Agreements had a notional amount of $1.00 billion in aggregate which matured in the second quarter of the fiscal year ended June 30, 2015 . The Company designated each of the Rate Lock Agreements as a qualifying hedging instrument and accounted for as a cash flow hedge, under which the effective portion of the gain or loss on the close out of the Rate Lock Agreements was initially recognized in accumulated other comprehensive income (loss) as a reduction of total stockholders’ equity and subsequently amortized into earnings as a component of interest expense over the term of the underlying debt. The ineffective portion, if any, was recognized in earnings immediately. The Rate Lock Agreements were terminated on the date of pricing of the $1.25 billion 的 4.650% Senior Notes due in 2024 and the Company recorded the fair value of $7.5 million 截至累积的其他综合收入（亏损）中的收益 December 31, 2014 . The Company recognized $0.2 million for each of the three 几个月结束了 March 31, 2017 和 2016 和 $0.6 million for each of the nine 几个月结束了 March 31, 2017 和 2016 for the amortization of the gain recognized in accumulated other comprehensive income (loss), which amount reduced the interest expense. As of March 31, 2017 的未摊销部分的公允价值forward contracts for the rate lock agreements was 570万美元 .
现金流对冲关系中的衍生品：外汇和利率合同
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
March 31,
Nine months ended
March 31,
(In thousands)
Location in Financial Statements
2017
2016
2017
2016
Derivatives Designated as Hedging Instruments
Gains (losses) in accumulated OCI on derivatives (effective portion)
Accumulated OCI
$
(3,526
)
$
(2,798
)
$
8,605

$
(3,952
)
Gains (losses) reclassified from accumulated OCI into income (effective portion):
收入
$
2,441

$
(930
)
$
(465
)
$
79

Costs of revenues
(342
)
(366
)
(498
)
(1,516
)
Interest expense
189

189

567

567

Net gains (losses) reclassified from accumulated OCI into income (effective portion)
$
2,288

$
（1,107
)
$
(396
)
$
（870
)
收益(损失)确认收入的衍生品(ineffective portion and amount excluded from effectiveness testing)
Other expense (income), net
$
566

$
(396
)
$
(887
)
$
(795
)
Derivatives Not Designated as Hedging Instruments
收入认可的收益（损失）
Other expense (income), net
$
816

$
(7,350
)
$
5,947

$
(12,985
)


The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum remaining maturities of approximately 13 months as of March 31, 2017 和 7 months 截至2016年6月30日，如下：
(In thousands)
As of
March 31, 2017
As of
June 30, 2016
Cash flow hedge contracts
Purchase
$
17,069

$
7,591

Sell
$
109,408

$
91,793

Other foreign currency hedge contracts
Purchase
$
94,104

$
122,275

Sell
$
101,405

$
115,087


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
March 31, 2017
As of
June 30, 2016
Balance Sheet Location
As of
March 31, 2017
As of
June 30, 2016
(In thousands)
Fair Value
Fair Value
Derivatives designated as hedging instruments
外汇合同
Other current assets
$
1,994

$
342

其他流动负债
$
451

$
4,736

Total derivatives designated as hedging instruments
$
1,994

$
342

$
451

$
4,736

Derivatives not designated as hedging instruments
外汇合同
Other current assets
$
4,526

$
753

其他流动负债
$
1,443

$
6,911

Total derivatives not designated as hedging instruments
$
4,526

$
753

$
1,443

$
6,911

Total derivatives
$
6,520

$
1,095

$
1,894

$
11,647


The following table provides the balances and changes in accumulated OCI, before taxes, related to derivative instruments for the indicated periods:
Three months ended
March 31,
Nine months ended
March 31,
(In thousands)
2017
2016
2017
2016
Beginning balance
$
16,025

$
5,719

$
1,210

$
7110年

Amount reclassified to income
(2,288
)
1,107

396

870

未实现收益或损失的净变化
(3,526
)
(2,798
)
8,605

(3,952
)
Ending balance
$
10,211

$
4,028

$
10,211

$
4,028


衍生品资产和Liabilit抵消ies
KLA-Tencor presents derivatives at gross fair values in the Condensed Consolidated Balance Sheets. 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 March 31, 2017 和 June 30, 2016 , information related to the offsetting arrangements was as follows (in thousands):
As of March 31, 2017
在凝结的合并资产负债表中，总数未偏移的衍生物总数
Description
总衍生物
总衍生物Offset in the Condensed Consolidated Balance Sheets
凝结合并资产负债表中呈现的衍生物的净量
Financial Instruments
Cash Collateral Received
Net Amount
Derivatives - Assets
$
6,520

$
—

$
6,520

$
(1,364
)
$
—

$
5,156

Derivatives - Liabilities
$
(1,894
)
$
—

$
(1,894
)
$
1,364

$
—

$
(530
)
As of June 30, 2016
在凝结的合并资产负债表中，总数未偏移的衍生物总数
Description
总衍生物
总衍生物Offset in the Condensed Consolidated Balance Sheets
凝结合并资产负债表中呈现的衍生物的净量
Financial Instruments
Cash Collateral Received
Net Amount
Derivatives - Assets
$
1,095

$
—

$
1,095

$
(843
)
$
—

$
252

Derivatives - Liabilities
$
(11,647
)
$
—

$
(11,647
)
$
843

$
—

$
(10,804
)
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