Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities

v2.3.0.15
Derivative Instruments and Hedging Activities
3 Months Ended
Sep. 30, 2011
General Discussion of Derivative Instruments and Hedging Activities [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的外国子公司在各个全球市场上运营和出售KLA-Tencor的产品。结果，KLA-Tencor面临与外币汇率变化有关的风险。KLA-Tencor利用外币远期交换合同和期权合同来抵抗未来的外汇汇率变动，这些变化影响了某些现有和预测的外币销售和购买交易，例如日元，欧元和以色列Shekel。KLA-Tencor不使用衍生金融工具来投机或交易目的。该公司通beplay官网ued常会对某些金融机构对某些外币的暴露对冲，以最大程度地减少某些货币汇率波动的影响。这些货币远期交换合同和期权，指定为现金流套期，通常的成熟度低于 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 gain or loss 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 location and amounts of designated and non-designated derivative instruments’ gains and losses reported in the condensed consolidated financial statements for the three months ended September 30, 2011 和 2010 are as follows:
Three months ended
September 30,
(In thousands)
Location in Financial Statements
2011
2010
指定为对冲乐器的衍生物
Gains (losses) in accumulated OCI on derivatives (effective portion)
Accumulated OCI
$
(1,194
)
$
414

Gains (losses) reclassified from accumulated OCI into income (effective portion):
收入
$
(284
)
$
(793
)
Costs of revenues
61

(142
)
Total losses reclassified from accumulated OCI into income (effective portion)
$
(223
)
$
(935
)
Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Interest income and other, net
$
43

$
(119
)
Derivatives Not Designated as Hedging Instruments
Losses recognized in income
Interest income and other, net
$
（12,568
)
$
（1,356
)

The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum maturity of 13 months, as of September 30, 2011 和 June 30, 2011 was as follows:
(In thousands)
As of
September 30, 2011
As of
June 30, 2011
现金流对冲合同
Purchase
$
3,222

$
3,381

Sell
$
54,855

$
30,133

Other foreign currency hedge contracts
Purchase
$
117,439

$
174,499

Sell
$
171,968

$
216,738


The location and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets as of September 30, 2011 和 June 30, 2011 were as follows:
Asset Derivatives
Liability Derivatives
Balance Sheet Location
September 30,
2011
June 30,
2011
Balance Sheet Location
September 30,
2011
June 30,
2011
(In thousands)
Fair Value
Fair Value
Derivatives designated as hedging instruments
外汇合同
Other current assets
$
161

$
145

其他流动负债
$
721

$
475

Total derivatives designated as hedging instruments
$
161

$
145

$
721

$
475

Derivatives not designated as hedging instruments
外汇合同
Other current assets
$
684

$
1,825

其他流动负债
$
5,333

$
1,652

Total derivatives not designated as hedging instruments
$
684

$
1,825

$
5,333

$
1,652

Total derivatives
$
845

$
1,970

$
6,054

$
2,127


下表提供了与三个月结束的衍生工具有关的累积其他综合收入（损失）的余额和变化 September 30, 2011 和 2010 :
Three months ended
September 30,
(In thousands)
2011
2010
Beginning balance
$
12

$
(1,995
)
Amount reclassified to income
223

935

Net change
(1,194
)
414

Ending balance
$
(959
)
$
(646
)
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