2.4.0.81010 - Disclosure - Summary of Significant Accounting Policiestruefalsefalse1falsefalsefalseeol_PE5807----1310-K0007_STD_371_20130630_0http://www.sec.gov/CIK0000707549duration2012-06-25T00:00:002013-06-30T00:00:001false4us-gaap_SignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div>
<p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Note 2: Summary of
Significant Accounting Policies</b></font></p>
<p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">The preparation
of financial statements, in conformity with U.S. Generally Accepted
Accounting Principles (“GAAP”), requires management to
make judgments, estimates, and assumptions that could affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenue and
expenses during the reporting period. The Company bases its
estimates and assumptions on historical experience and on various
other assumptions we believed to be applicable, and evaluated them
on an on-going basis to ensure they remain reasonable under current
conditions. Actual results could differ significantly from those
estimates.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Revenue
Recognition:</i> The Company recognizes revenue when persuasive
evidence of an arrangement exists, delivery has occurred and title
has passed or services have been rendered, the selling price is
fixed or determinable, collection of the receivable is reasonably
assured, and the Company has received customer acceptance,
completed its system installation obligations, or is otherwise
released from its installation or customer acceptance obligations.
If terms of the sale provide for a lapsing customer acceptance
period, the Company recognizes revenue upon the expiration of the
lapsing acceptance period or customer acceptance, whichever occurs
first. If the practices of a customer do not provide for a written
acceptance or the terms of sale do not include a lapsing acceptance
provision, the Company recognizes revenue when it can be reliably
demonstrated that the delivered system meets all of the agreed-to
customer specifications. In situations with multiple deliverables,
revenue is recognized upon the delivery of the separate elements to
the customer and when the Company receives customer acceptance or
is otherwise released from its customer acceptance obligations.
Revenue from multiple-element arrangements is allocated among the
separate elements based on their relative selling prices, provided
the elements have value on a stand-alone basis. Our sales
arrangements do not include a general right of return. The maximum
revenue recognized on a delivered element is limited to the amount
that is not contingent upon the delivery of additional items.
Revenue related to sales of spare parts and system upgrade kits is
generally recognized upon shipment. Revenue related to services is
generally recognized upon completion of the services requested by a
customer order. Revenue for extended maintenance service contracts
with a fixed payment amount is recognized on a straight-line basis
over the term of the contract. When goods or services have been
delivered to the customer but all conditions for revenue
recognition have not been met, the Company defers revenue
recognition until customer acceptance and records the deferred
revenue and/or deferred costs of sales in deferred profit on the
Consolidated Balance Sheet.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Inventory
Valuation:</i> Inventories are stated at the lower of cost or
market using standard costs which generally approximate actual
costs on a first-in, first-out basis. The Company maintains a
perpetual inventory system and continuously records the quantity
on-hand and standard cost for each product, including purchased
components, subassemblies, and finished goods. The Company
maintains the integrity of perpetual inventory records through
periodic physical counts of quantities on hand. Finished goods are
reported as inventories until the point of title transfer to the
customer. Transfer of title for shipments to Japanese customers
generally occurs at time of customer acceptance.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">Standard costs
are reassessed as needed but annually at a minimum, and reflect
acquisition costs. Acquisition costs are generally based on the
most recent vendor contract prices for purchased parts, normalized
assembly and test labor utilization levels, methods of
manufacturing, and normalized overhead. Manufacturing labor and
overhead costs are attributed to individual product standard costs
at a level planned to absorb spending at average utilization
volumes.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">Management
evaluates the need to record adjustments for impairment of
inventory at least quarterly. The Company’s policy is to
assess the valuation of all inventories including manufacturing raw
materials, work-in-process, finished goods, and spare parts in each
reporting period. Obsolete inventory or inventory in excess of
management’s estimated usage requirements over the next 12 to
36 months is written down to its estimated market value if
less than cost. Estimates of market value include, but are not
limited to, management’s forecasts related to the
Company’s future manufacturing schedules, customer demand,
technological and/or market obsolescence, general semiconductor
market conditions, possible alternative uses, and ultimate
realization of excess inventory. If future customer demand or
market conditions are less favorable than the Company’s
projections, additional inventory write-downs may be required and
would be reflected in cost of sales in the period the revision is
made.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Warranty:</i> Typically, the sale of semiconductor capital
equipment includes providing parts and service warranty to
customers as part of the overall price of the system. The Company
provides standard warranties for its systems. The Company records a
provision for estimated warranty expenses to cost of sales for each
system upon revenue recognition. The amount recorded is based on an
analysis of historical activity which uses factors such as type of
system, customer, geographic region, and any known factors such as
tool reliability trends. All actual or estimated parts and labor
costs incurred in subsequent periods are charged to those
established reserves on a system-by-system basis.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">Actual warranty
expenses are accounted for on a system-by-system basis and may
differ from the Company’s original estimates. While the
Company periodically monitors the performance and cost of warranty
activities, if actual costs incurred are different than its
estimates, the Company may recognize adjustments to provisions in
the period in which those differences arise or are identified. In
addition to the provision of standard warranties, the Company
offers customer-paid extended warranty services. Revenues for
extended maintenance and warranty services with a fixed payment
amount are recognized on a straight-line basis over the term of the
contract. Related costs are recorded as incurred.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Equity-based
Compensation — Employee Stock Purchase Plan
(“ESPP”) and Employee Stock Plans:</i> The Company
recognizes the fair value of equity-based awards as employee
compensation expense. The fair value of the Company’s
restricted stock units was calculated based upon the fair market
value of Company stock at the date of grant. The fair value of the
Company’s stock options and ESPP awards was estimated using a
Black-Scholes option valuation model. This model requires the input
of highly subjective assumptions, including expected stock price
volatility and the estimated life of each award. The fair value of
equity-based awards is amortized over the vesting period of the
award and the Company has elected to use the straight-line method
of amortization.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px">
 </p>
<p style="MARGIN-TOP: 0px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Income
Taxes:</i> Deferred income taxes reflect the net effect of
temporary differences between the carrying amount of assets and
liabilities for financial reporting purposes and the amounts used
for income tax purposes, as well as the tax effect of
carryforwards. The Company records a valuation allowance to reduce
its deferred tax assets to the amount that is more-likely-than-not
to be realized. Realization of the Company’s net deferred tax
assets is dependent on future taxable income. The Company believes
it is more-likely-than-not that such assets will be realized;
however, ultimate realization could be negatively impacted by
market conditions and other variables not known or anticipated at
the time. In the event that the Company determines that it would
not be able to realize all or part of its net deferred tax assets,
an adjustment would be charged to earnings in the period such
determination is made. Likewise, if the Company later determined
that it is more-likely-than-not that the deferred tax assets would
be realized, then the previously provided valuation allowance would
be reversed.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">The Company
recognizes the benefit from a tax position only if it is
more-likely-than-not that the position would be sustained upon
audit based solely on the technical merits of the tax position. Our
policy is to include interest and penalties related to unrecognized
tax benefits as a component of income tax expense. The Company must
make certain estimates and judgments in determining income tax
expense for financial statement purposes. These estimates and
judgments occur in the calculation of tax credits, benefits, and
deductions, and in the calculation of certain tax assets and
liabilities, which arise from differences in the timing of
recognition of revenue and expense for tax and financial statement
purposes, as well as the interest and penalties relating to these
uncertain tax positions. Significant changes to these estimates may
result in an increase or decrease to our tax provision in a
subsequent period.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">In addition,
the calculation of the Company’s tax liabilities involves
uncertainties in the application of complex tax regulations. The
Company recognizes liabilities for uncertain tax positions based on
the two-step process. The first step is to evaluate the tax
position for recognition by determining if the weight of available
evidence indicates that it is more-likely-than-not that the
position will be sustained on tax audit, including resolution of
related appeals or litigation processes, if any. The second step
requires the Company to estimate and measure the tax benefit as the
largest amount that is more-likely-than-not to be realized upon
ultimate settlement. It is inherently difficult and subjective to
estimate such amounts, as this requires us to determine the
probability of various possible outcomes. The Company reevaluates
these uncertain tax positions on a quarterly basis. This evaluation
is based on factors including, but not limited to, changes in facts
or circumstances, changes in tax law, effectively settled issues
under audit, and new audit activity. Such a change in recognition
or measurement would result in the recognition of a tax benefit or
an additional charge to the tax provision in the period such
determination is made.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Goodwill and
Intangible Assets:</i> The valuation of intangible assets acquired
in a business combination requires the use of management estimates
including but not limited to estimating future expected cash flows
from assets acquired and determining discount rates.
Management’s estimates of fair value are based upon
assumptions believed to be reasonable, but which are inherently
uncertain and unpredictable and, as a result, actual results may
differ from estimates. Estimates associated with the accounting for
acquisitions may change as additional information becomes
available.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">Goodwill
represents the amount by which the purchase price of a business
combination exceeds the fair value of the net tangible and
identifiable intangible assets acquired. Each component of the
Company for which discrete financial information is available and
for which segment management regularly reviews the results of
operations is considered a reporting unit. All goodwill acquired in
a business combination is assigned to one or more reporting units
as of the acquisition date. Goodwill is assigned to the
Company’s reporting units that are expected to benefit from
the synergies of the combination. The goodwill assigned to a
reporting unit is the difference between the acquisition
consideration assigned to the reporting unit on a relative fair
value basis and the fair value of acquired assets and liabilities
that can be specifically attributed to the reporting unit. The
Company tests goodwill and identifiable intangible assets with
indefinite useful lives for impairment at least annually. The value
intangible assets with estimable useful lives is amortized over
their respective estimated useful lives, and the Company reviews
for impairment whenever events or changes in circumstances indicate
that the carrying amount of the intangible asset may not be
recoverable and the carrying amount exceeds its fair
value.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px">
 </p>
<p style="MARGIN-TOP: 0px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">The Company
reviews goodwill at least annually for impairment. Should certain
events or indicators of impairment occur between annual impairment
tests, the Company would perform an impairment test of goodwill at
that date. In testing for a potential impairment of goodwill, the
Company: (1) allocates goodwill to our reporting units to
which the acquired goodwill relates; (2) estimates the fair
value of its reporting units; and (3) determines the carrying
value (book value) of those reporting units. Prior to this
allocation of the assets to the reporting units, the Company is
required to assess long-lived assets for impairment. Furthermore,
if the estimated fair value of a reporting unit is less than the
carrying value, the Company must estimate the fair value of all
identifiable assets and liabilities of that reporting unit, in a
manner similar to a purchase price allocation for an acquired
business. This can require independent valuations of certain
internally generated and unrecognized intangible assets such as
in-process research and development and developed technology. Only
after this process is completed can the amount of goodwill
impairment, if any, be determined. Beginning with its fiscal year
2012 goodwill impairment analysis, the Company adopted new
accounting guidance that allowed it to first assess qualitative
factors to determine whether it was necessary to perform a
quantitative analysis. Under the revised guidance, an entity no
longer required to calculate the fair value of a reporting unit
unless the entity determines, based on a qualitative assessment,
that it is more-likely-than-not that its fair value is less than
its carrying amount. The Company did not record impairments of
goodwill during the years ended June 30, 2013, June 24,
2012, or June 26, 2011.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">The process of
evaluating the potential impairment of goodwill is subjective and
requires significant judgment at many points during the analysis.
The Company determines the fair value of its reporting units by
using a weighted combination of both a market and an income
approach, as this combination is deemed to be the most indicative
of our fair value in an orderly transaction between market
participants.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">Under the
market approach, the Company utilizes information regarding the
reporting unit as well as publicly available industry information
to determine various financial multiples to value our reporting
units. Under the income approach, the Company determines fair value
based on estimated future cash flows of each reporting unit,
discounted by an estimated weighted-average cost of capital, which
reflects the overall level of inherent risk of a reporting unit and
the rate of return an outside investor would expect to
earn.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">In estimating
the fair value of a reporting unit for the purposes of the
Company’s annual or periodic analyses, the Company makes
estimates and judgments about the future cash flows of its
reporting units, including estimated growth rates and assumptions
about the economic environment. Although the Company’s cash
flow forecasts are based on assumptions that are consistent with
the plans and estimates it is using to manage the underlying
businesses, there is significant judgment involved in determining
the cash flows attributable to a reporting unit. In addition, the
Company makes certain judgments about allocating shared assets to
the estimated balance sheets of our reporting units. The Company
also considers its market capitalization and that of its
competitors on the date it performs the analysis. Changes in
judgment on these assumptions and estimates could result in a
goodwill impairment charge.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">As a result,
several factors could result in impairment of a material amount of
the Company’s goodwill balance in future periods, including,
but not limited to: (1) weakening of the global economy,
weakness in the semiconductor equipment industry, or failure of the
Company to reach its internal forecasts, which could impact the
Company’s ability to achieve its forecasted levels of cash
flows and reduce the estimated discounted cash flow value of its
reporting units; and (2) a decline in the Company’s
stock price and resulting market capitalization, if the Company
determines that the decline is sustained and indicates a reduction
in the fair value of the Company’s reporting units below
their carrying value. Further, the value assigned to intangible
assets, other than goodwill, is based on estimates and judgments
regarding expectations such as the success and life cycle of
products and technology acquired. If actual product acceptance
differs significantly from the estimates, the Company may be
required to record an impairment charge to write down the asset to
its realizable value.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Fiscal
Year:</i> The Company follows a 52/53-week fiscal reporting
calendar, and its fiscal year ends on the last Sunday of June each
year. The Company’s most recent fiscal year ended on
June 30, 2013 and included 53 weeks. The fiscal years ended
June 24, 2012 and June 26, 2011 included 52 weeks.
The Company’s next fiscal year, ending on June 29, 2014
will include 52 weeks.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Principles
of Consolidation:</i> The consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries. All
intercompany accounts and transactions have been eliminated in
consolidation.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Cash
Equivalents and Short-Term Investments:</i> Investments purchased
with an original maturity of three months or less are considered
cash equivalents. The Company also invests in certain mutual funds,
which include equity and fixed income securities, related to its
obligations under its deferred compensation plan, and such
investments are classified as trading securities on the
consolidated balance sheets. All of the Company’s other
short-term investments are classified as available-for-sale at the
respective balance sheet dates. The Company accounts for its
investment portfolio at fair value. Investments classified as
trading securities are recorded at fair value based upon quoted
market prices. Differences between the cost and fair value of
trading securities are recognized as “Other income
(expense)” in the Consolidated Statement of Operations. The
investments classified as available-for-sale are recorded at fair
value based upon quoted market prices, and temporary difference
between the cost and fair value of available-for-sale securities is
presented as a separate component of accumulated other
comprehensive income (loss). Unrealized losses on
available-for-sale securities are charged against “Other
income (expense)” when a decline in fair value is determined
to be other-than-temporary. The Company considers several factors
to determine whether a loss is other-than-temporary. These factors
include but are not limited to: (i) the extent to which the
fair value is less than cost basis, (ii) the financial
condition and near term prospects of the issuer, (iii) the
length of time a security is in an unrealized loss position and
(iv) the Company’s ability to hold the security for a
period of time sufficient to allow for any anticipated recovery in
fair value. The Company’s ongoing consideration of these
factors could result in additional impairment charges in the
future, which could adversely affect its results of operation. An
other-than-temporary impairment is triggered when there is an
intent to sell the security, it is more-likely-than-not that the
security will be required to be sold before recovery, or the
security is not expected to recover the entire amortized cost basis
of the security. Other-than-temporary impairments attributed to
credit losses are recognized in the income statement. The specific
identification method is used to determine the realized gains and
losses on investments.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Allowance
for Doubtful Accounts:</i> The Company evaluates its allowance for
doubtful accounts based on a combination of factors. In
circumstances where specific invoices are deemed to be
uncollectible, the Company provides a specific allowance for bad
debt against the amount due to reduce the net recognized receivable
to the amount it reasonably believes will be collected. The Company
also provides allowances based on its write-off history.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Property and
Equipment:</i> Property and equipment is stated at cost. Equipment
is depreciated by the straight-line method over the estimated
useful lives of the assets, generally three to eight years.
Furniture and fixtures are depreciated by the straight-line method
over the estimated useful lives of the assets, generally five
years. Software is amortized by the straight-line method over the
estimated useful lives of the assets, generally three to five
years. Buildings are depreciated by the straight-line method over
the estimated useful lives of the assets, generally twenty-five to
thirty-three years. Leasehold improvements are generally amortized
by the straight-line method over the shorter of the life of the
related asset or the term of the underlying lease. Amortization of
capital leases is included with depreciation expense.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Impairment
of Long-Lived Assets (Excluding Goodwill and Intangibles):</i> The
Company routinely considers whether indicators of impairment of
long-lived assets are present. If such indicators are present, the
Company determines whether the sum of the estimated undiscounted
cash flows attributable to the assets is less than their carrying
value. If the sum is less, the Company recognizes an impairment
loss based on the excess of the carrying amount of the assets over
their respective fair values. Fair value is determined by
discounted future cash flows, appraisals or other methods. If the
assets determined to be impaired are to be held and used, the
Company recognizes an impairment charge to the extent the present
value of anticipated net cash flows attributable to the asset are
less than the asset’s carrying value. The fair value of the
asset then becomes the asset’s new carrying value, which the
Company depreciates over the remaining estimated useful life of the
asset. Assets to be disposed of are reported at the lower of the
carrying amount or fair value. The Company did not record
impairments of long lived assets held for use during fiscal years
2013, 2012, or 2011.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Derivative
Financial Instruments:</i> In the normal course of business, the
Company’s financial position is routinely subjected to market
risk associated with foreign currency exchange rate fluctuations.
The Company’s policy is to mitigate the effect of these
exchange rate fluctuations on certain foreign currency denominated
business exposures. The Company has a policy that allows the use of
derivative financial instruments to hedge foreign currency exchange
rate fluctuations on forecasted revenue and expenses and net
monetary assets or liabilities denominated in various foreign
currencies. The Company carries derivative financial instruments
(derivatives) on the balance sheet at their fair values. The
Company does not use derivatives for trading or speculative
purposes. The Company does not believe that it is exposed to more
than a nominal amount of credit risk in its interest rate and
foreign currency hedges, as counterparties are large, global and
well-capitalized financial institutions. The Company’s
exposures are in liquid currencies (Japanese yen, Swiss francs,
euros, Taiwanese dollars, and Korean won), so there is minimal risk
that appropriate derivatives to maintain the Company’s
hedging program would not be available in the future.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">To hedge
foreign currency risks, the Company uses foreign currency exchange
forward contracts, where possible and prudent. These forward
contracts are valued using standard valuation formulas with
assumptions about future foreign currency exchange rates derived
from existing exchange rates,interest rates, and other market
factors.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2">The Company
considers its most current forecast in determining the level of
foreign currency denominated revenue and expenses to hedge as cash
flow hedges. The Company combines these forecasts with historical
trends to establish the portion of its expected volume to be
hedged. The revenue and expenses are hedged and designated as cash
flow hedges to protect the Company from exposures to fluctuations
in foreign currency exchange rates. If the underlying forecasted
transaction does not occur, or it becomes probable that it will not
occur, the related hedge gains and losses on the cash flow hedge
are reclassified from accumulated other comprehensive income
(loss) to interest and other income (expense) on the
consolidated statement of operations at that time.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Guarantees:</i> The Company has certain operating leases
that contain provisions whereby the properties subject to the
operating leases may be remarketed at lease expiration. The Company
has guaranteed to the lessor an amount approximating the
lessor’s investment in the property. The Company has recorded
a liability for certain guaranteed residual values related to these
specific operating lease agreements. Also, the Company’s
guarantees generally include certain indemnifications to its
lessors under operating lease agreements for environmental matters,
potential overdraft protection obligations to financial
institutions related to one of the Company’s subsidiaries,
indemnifications to the Company’s customers for certain
infringement of third-party intellectual property rights by its
products and services, and the Company’s warranty obligations
under sales of its products.</font></p>
<p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px">
<font style="FONT-FAMILY: Times New Roman" size="2"><i>Foreign
Currency Translation:</i> The Company’s non-U.S. subsidiaries
that operate in a local currency environment, where that local
currency is the functional currency, primarily generate and expend
cash in their local currency. Billings and receipts for their labor
and services are primarily denominated in the local currency, and
the workforce is paid in local currency. Accordingly, all balance
sheet accounts of these local functional currency subsidiaries are
translated at the fiscal period-end exchange rate, and income and
expense accounts are translated using average rates in effect for
the period, except for costs related to those balance sheet items
that are translated using historical exchange rates. The resulting
translation adjustments are recorded as cumulative translation
adjustments and are a component of accumulated other comprehensive
income (loss). Translation adjustments are recorded in other income
(expense), net, where the U.S. dollar is the functional
currency.</font></p>
</div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18861-107790
Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18743-107790
Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18854-107790
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