false2021Q2000031920106-30us-gaap:AccountingStandardsUpdate201613MemberP2YP3Y33.3325.00P3Y33.3325.0000003192012020-07-012020-12-31xbrli:shares00003192012021-01-15iso4217:USD00003192012020-12-3100003192012020-06-300000319201us-gaap:ProductMember2020-10-012020-12-310000319201us-gaap:ProductMember2019-10-012019-12-310000319201us-gaap:ProductMember2020-07-012020-12-310000319201us-gaap:ProductMember2019-07-012019-12-310000319201us-gaap:ServiceMember2020-10-012020-12-310000319201us-gaap:ServiceMember2019-10-012019-12-310000319201us-gaap:ServiceMember2020-07-012020-12-310000319201us-gaap:ServiceMember2019-07-012019-12-3100003192012020-10-012020-12-3100003192012019-10-012019-12-3100003192012019-07-012019-12-31iso4217:USDxbrli:shares0000319201us-gaap:CommonStockMember2020-06-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-06-300000319201us-gaap:RetainedEarningsMember2020-06-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000319201us-gaap:ParentMember2020-06-300000319201us-gaap:NoncontrollingInterestMember2020-06-300000319201srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-07-012020-06-300000319201us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300000319201us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300000319201srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300000319201us-gaap:RetainedEarningsMember2020-07-012020-09-300000319201us-gaap:ParentMember2020-07-012020-09-3000003192012020-07-012020-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000319201us-gaap:NoncontrollingInterestMember2020-07-012020-09-300000319201us-gaap:CommonStockMember2020-07-012020-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-07-012020-09-300000319201us-gaap:CommonStockMember2020-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-09-300000319201us-gaap:RetainedEarningsMember2020-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000319201us-gaap:ParentMember2020-09-300000319201us-gaap:NoncontrollingInterestMember2020-09-3000003192012020-09-300000319201us-gaap:RetainedEarningsMember2020-10-012020-12-310000319201us-gaap:ParentMember2020-10-012020-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310000319201us-gaap:NoncontrollingInterestMember2020-10-012020-12-310000319201us-gaap:CommonStockMember2020-10-012020-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-10-012020-12-310000319201us-gaap:CommonStockMember2020-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-12-310000319201us-gaap:RetainedEarningsMember2020-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000319201us-gaap:ParentMember2020-12-310000319201us-gaap:NoncontrollingInterestMember2020-12-310000319201us-gaap:CommonStockMember2019-06-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2019-06-300000319201us-gaap:RetainedEarningsMember2019-06-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300000319201us-gaap:ParentMember2019-06-300000319201us-gaap:NoncontrollingInterestMember2019-06-3000003192012019-06-300000319201us-gaap:RetainedEarningsMember2019-07-012019-09-300000319201us-gaap:ParentMember2019-07-012019-09-3000003192012019-07-012019-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300000319201us-gaap:NoncontrollingInterestMember2019-07-012019-09-300000319201us-gaap:CommonStockMember2019-07-012019-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2019-07-012019-09-300000319201us-gaap:CommonStockMember2019-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2019-09-300000319201us-gaap:RetainedEarningsMember2019-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300000319201us-gaap:ParentMember2019-09-300000319201us-gaap:NoncontrollingInterestMember2019-09-3000003192012019-09-300000319201us-gaap:RetainedEarningsMember2019-10-012019-12-310000319201us-gaap:ParentMember2019-10-012019-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-10-012019-12-310000319201us-gaap:NoncontrollingInterestMember2019-10-012019-12-310000319201us-gaap:CommonStockMember2019-10-012019-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2019-10-012019-12-310000319201us-gaap:CommonStockMember2019-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2019-12-310000319201us-gaap:RetainedEarningsMember2019-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000319201us-gaap:ParentMember2019-12-310000319201us-gaap:NoncontrollingInterestMember2019-12-3100003192012019-12-310000319201us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-07-01xbrli:pure0000319201srt:MinimumMember2020-12-310000319201srt:MaximumMember2020-12-310000319201srt:MinimumMember2021-01-012020-12-3100003192012021-01-01srt:MaximumMember2020-12-3100003192012021-01-012020-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:SovereignDebtSecuritiesMember2020-12-310000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SovereignDebtSecuritiesMember2020-12-310000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SovereignDebtSecuritiesMember2020-12-310000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SovereignDebtSecuritiesMember2020-12-310000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:SovereignDebtSecuritiesMember2020-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SovereignDebtSecuritiesMember2020-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:SovereignDebtSecuritiesMember2020-06-300000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SovereignDebtSecuritiesMember2020-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300000319201us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-10-012020-12-310000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-10-012019-12-310000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-12-310000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-07-012019-12-310000319201us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000319201us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000319201us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000319201us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300000319201us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-06-300000319201us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-06-300000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-06-300000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-10-012020-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-10-012019-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-07-012020-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-07-012019-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2020-10-012020-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2019-10-012019-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2020-07-012020-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2019-07-012019-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-10-012020-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-10-012019-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-07-012020-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-07-012019-12-310000319201us-gaap:CorporateDebtSecuritiesMember2020-12-310000319201klac:MoneyMarketBankDepositsAndOtherMember2020-12-310000319201us-gaap:MunicipalBondsMember2020-12-310000319201us-gaap:SovereignDebtSecuritiesMember2020-12-310000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310000319201us-gaap:USTreasurySecuritiesMember2020-12-310000319201us-gaap:CashAndCashEquivalentsMember2020-12-310000319201us-gaap:CorporateDebtSecuritiesMember2020-06-300000319201klac:MoneyMarketBankDepositsAndOtherMember2020-06-300000319201us-gaap:MunicipalBondsMember2020-06-300000319201us-gaap:SovereignDebtSecuritiesMember2020-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-06-300000319201us-gaap:USTreasurySecuritiesMember2020-06-300000319201us-gaap:CashAndCashEquivalentsMember2020-06-300000319201klac:CorporateAndGovernmentSecuritiesMember2020-12-31klac:investment0000319201klac:April2020AcquisitionMember2020-04-242020-04-240000319201klac:August2019AcquisitionMember2019-08-222019-08-220000319201klac:August2019AcquisitionMember2019-08-220000319201klac:WaferInspectionAndPatterningMemberklac:August2019AcquisitionMember2020-10-012020-12-310000319201klac:OtherAcquisitionsMember2020-12-31klac:segmentklac:reporting_unit0000319201klac:WaferInspectionAndPatterningMember2020-06-300000319201klac:GlobalServiceAndSupportMember2020-06-300000319201klac:SpecialtySemiconductorProcessMember2020-06-300000319201klac:PCBAndDisplayMember2020-06-300000319201klac:ComponentInspectionMember2020-06-300000319201klac:WaferInspectionAndPatterningMember2020-07-012020-12-310000319201klac:GlobalServiceAndSupportMember2020-07-012020-12-310000319201klac:SpecialtySemiconductorProcessMember2020-07-012020-12-310000319201klac:PCBAndDisplayMember2020-07-012020-12-310000319201klac:ComponentInspectionMember2020-07-012020-12-310000319201klac:WaferInspectionAndPatterningMember2020-12-310000319201klac:GlobalServiceAndSupportMember2020-12-310000319201klac:SpecialtySemiconductorProcessMember2020-12-310000319201klac:PCBAndDisplayMember2020-12-310000319201klac:ComponentInspectionMember2020-12-310000319201klac:OtherReportingUnitsMember2020-12-310000319201klac:OtherReportingUnitsMember2020-06-300000319201klac:SpecialtySemiconductorProcessMember2020-04-012020-06-300000319201klac:PCBAndDisplayMember2020-04-012020-06-300000319201klac:ExistingTechnologyMembersrt:MinimumMember2020-07-012020-12-310000319201klac:ExistingTechnologyMembersrt:MaximumMember2020-07-012020-12-310000319201klac:ExistingTechnologyMember2020-12-310000319201klac:ExistingTechnologyMember2020-06-300000319201us-gaap:CustomerRelationshipsMembersrt:MinimumMember2020-07-012020-12-310000319201us-gaap:CustomerRelationshipsMembersrt:MaximumMember2020-07-012020-12-310000319201us-gaap:CustomerRelationshipsMember2020-12-310000319201us-gaap:CustomerRelationshipsMember2020-06-300000319201srt:MinimumMemberklac:TradeNameTrademarkMember2020-07-012020-12-310000319201srt:MaximumMemberklac:TradeNameTrademarkMember2020-07-012020-12-310000319201klac:TradeNameTrademarkMember2020-12-310000319201klac:TradeNameTrademarkMember2020-06-300000319201srt:MinimumMemberus-gaap:OtherIntangibleAssetsMember2020-07-012020-12-310000319201srt:MaximumMemberus-gaap:OtherIntangibleAssetsMember2020-07-012020-12-310000319201us-gaap:OtherIntangibleAssetsMember2020-12-310000319201us-gaap:OtherIntangibleAssetsMember2020-06-300000319201us-gaap:InProcessResearchAndDevelopmentMember2020-12-310000319201us-gaap:InProcessResearchAndDevelopmentMember2020-06-3000003192012019-07-012020-03-310000319201us-gaap:CostOfSalesMember2020-10-012020-12-310000319201us-gaap:CostOfSalesMember2019-10-012019-12-310000319201us-gaap:CostOfSalesMember2020-07-012020-12-310000319201us-gaap:CostOfSalesMember2019-07-012019-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2020-10-012020-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2019-10-012019-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2019-07-012019-12-310000319201us-gaap:SeniorNotesMemberklac:SeniorNotesDueNovember12024Member2020-12-310000319201us-gaap:SeniorNotesMemberklac:SeniorNotesDueNovember12024Member2020-06-300000319201klac:SeniorNotesDueNovember12034Memberus-gaap:SeniorNotesMember2020-12-310000319201klac:SeniorNotesDueNovember12034Memberus-gaap:SeniorNotesMember2020-06-300000319201klac:SeniorNotesDueMarch152029Memberus-gaap:SeniorNotesMember2020-12-310000319201klac:SeniorNotesDueMarch152029Memberus-gaap:SeniorNotesMember2020-06-300000319201klac:SeniorNotesDueMarch152049Memberus-gaap:SeniorNotesMember2020-12-310000319201klac:SeniorNotesDueMarch152049Memberus-gaap:SeniorNotesMember2020-06-300000319201klac:SeniorNotesDueMarch12050Memberus-gaap:SeniorNotesMember2020-12-310000319201klac:SeniorNotesDueMarch12050Memberus-gaap:SeniorNotesMember2020-06-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-12-310000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-06-300000319201klac:A347NotePayableDueOnFebruary202021Memberus-gaap:NotesPayableToBanksMember2020-12-310000319201klac:A347NotePayableDueOnFebruary202021Memberus-gaap:NotesPayableToBanksMember2020-06-300000319201us-gaap:NotesPayableToBanksMemberklac:A359NotePayableDueOnFebruary202022Member2020-12-310000319201us-gaap:NotesPayableToBanksMemberklac:A359NotePayableDueOnFebruary202022Member2020-06-300000319201us-gaap:SeniorNotesMemberklac:A2020SeniorNotesMember2020-02-290000319201us-gaap:SeniorNotesMemberklac:A2019SeniorNotesMember2019-03-310000319201us-gaap:SeniorNotesMemberklac:A2014SeniorNotesMember2014-11-300000319201us-gaap:SeniorNotesMemberklac:A2014SeniorNotesMember2019-10-012019-12-310000319201us-gaap:SeniorNotesMemberklac:A2014SeniorNotesMember2017-10-012017-12-310000319201us-gaap:SeniorNotesMemberklac:A2014SeniorNotesMember2020-01-012020-03-310000319201us-gaap:SeniorNotesMemberklac:A2014SeniorNotesMember2020-12-310000319201us-gaap:SeniorNotesMember2020-07-012020-12-310000319201us-gaap:SeniorNotesMember2020-12-310000319201us-gaap:SeniorNotesMember2020-06-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2019-07-012020-06-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-01-012020-03-310000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-07-012020-09-300000319201us-gaap:RevolvingCreditFacilityMemberklac:AlternativeBaseRateMembersrt:MinimumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMemberklac:AlternativeBaseRateMembersrt:MaximumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-07-012020-12-31klac:quarter0000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2017-11-300000319201us-gaap:NotesPayableToBanksMember2020-12-310000319201srt:MinimumMember2020-07-012020-12-310000319201srt:MaximumMember2020-07-012020-12-310000319201klac:TwoThousandFourPlanMember2020-12-310000319201klac:AssumedEquityPlansMember2020-12-310000319201klac:TwoThousandFourPlanMember2020-06-300000319201klac:TwoThousandFourPlanMember2020-07-012020-12-310000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMemberklac:SeniorManagementMember2020-12-310000319201klac:TwoThousandFourPlanMemberus-gaap:RestrictedStockUnitsRSUMember2020-06-300000319201klac:TwoThousandFourPlanMemberus-gaap:RestrictedStockUnitsRSUMember2020-07-012020-12-310000319201klac:TwoThousandFourPlanMemberus-gaap:RestrictedStockUnitsRSUMember2020-12-310000319201klac:TwoThousandFourPlanMemberklac:RestrictedStockUnitPerformanceBasedAndServiceBasedMember2020-12-310000319201srt:MinimumMemberklac:RestrictedStockUnitServiceBasedMember2020-07-012020-12-310000319201srt:MaximumMemberklac:RestrictedStockUnitServiceBasedMember2020-07-012020-12-31klac:Installment0000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMember2020-07-012020-12-310000319201klac:RestrictedStockUnitMarketBasedAndServiceBasedMember2020-07-012020-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2020-10-012020-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2019-10-012019-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2019-07-012019-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2020-12-310000319201klac:CashLongTermIncentivePlanMember2020-07-012020-12-310000319201klac:CashLongTermIncentivePlanMember2019-07-012019-12-310000319201srt:MinimumMemberklac:CashLongTermIncentivePlanMember2020-07-012020-12-310000319201srt:MaximumMemberklac:CashLongTermIncentivePlanMember2020-07-012020-12-310000319201klac:CashLongTermIncentivePlanMember2020-10-012020-12-310000319201klac:CashLongTermIncentivePlanMember2019-10-012019-12-310000319201klac:CashLongTermIncentivePlanMember2020-12-310000319201us-gaap:EmployeeStockMember2020-12-310000319201us-gaap:EmployeeStockMember2020-07-012020-12-310000319201us-gaap:EmployeeStockMember2020-10-012020-12-310000319201us-gaap:EmployeeStockMember2019-10-012019-12-310000319201us-gaap:EmployeeStockMember2019-07-012019-12-3100003192012020-11-052020-11-050000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMember2020-12-310000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMember2020-06-300000319201klac:OrbographLtd.Member2020-12-310000319201klac:OrbotechLTSolarLLCMember2020-12-310000319201klac:PixCellMember2020-12-310000319201klac:PixCellMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2020-07-012020-12-310000319201us-gaap:CommonStockMember2020-07-012020-12-310000319201us-gaap:CommonStockMember2019-07-012019-12-31iso4217:ILS0000319201us-gaap:ForeignCountryMemberus-gaap:IsraelTaxAuthorityMember2017-05-012017-05-310000319201us-gaap:ForeignCountryMemberus-gaap:IsraelTaxAuthorityMember2019-08-282019-08-280000319201us-gaap:ForeignCountryMemberus-gaap:IsraelTaxAuthorityMember2020-12-012020-12-310000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:DesignatedAsHedgingInstrumentMembersrt:MaximumMember2020-07-012020-12-310000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:SeniorNotesMemberus-gaap:DesignatedAsHedgingInstrumentMemberklac:A2020RateLockAgreementsMember2020-01-310000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:SeniorNotesMemberus-gaap:DesignatedAsHedgingInstrumentMemberklac:A2020RateLockAgreementsMember2019-07-012020-03-310000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:SeniorNotesMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-07-012019-06-300000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:SeniorNotesMemberus-gaap:DesignatedAsHedgingInstrumentMember2014-07-012015-06-300000319201klac:PortionofSeniorNotesMemberus-gaap:TreasuryLockMember2020-10-012020-12-310000319201klac:PortionofSeniorNotesMemberus-gaap:TreasuryLockMember2020-07-012020-12-310000319201klac:PortionofSeniorNotesMemberus-gaap:TreasuryLockMember2019-10-012019-12-310000319201klac:PortionofSeniorNotesMemberus-gaap:TreasuryLockMember2019-07-012019-12-310000319201klac:PortionofSeniorNotesMemberus-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:SeniorNotesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000319201us-gaap:ForeignExchangeContractMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMember2019-10-012019-12-310000319201us-gaap:ForeignExchangeContractMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMember2019-07-012019-12-310000319201us-gaap:SalesMemberus-gaap:InterestRateContractMember2020-10-012020-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:InterestRateContractMember2020-10-012020-12-310000319201us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2020-10-012020-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:InterestRateContractMember2020-10-012020-12-310000319201us-gaap:SalesMemberus-gaap:InterestRateContractMember2019-10-012019-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:InterestRateContractMember2019-10-012019-12-310000319201us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2019-10-012019-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:InterestRateContractMember2019-10-012019-12-310000319201us-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2020-10-012020-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:ForeignExchangeContractMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-10-012020-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:ForeignExchangeContractMember2020-10-012020-12-310000319201us-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2019-10-012019-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:ForeignExchangeContractMember2019-10-012019-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2019-10-012019-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:ForeignExchangeContractMember2019-10-012019-12-310000319201us-gaap:SalesMemberus-gaap:InterestRateContractMember2020-07-012020-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:InterestRateContractMember2020-07-012020-12-310000319201us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2020-07-012020-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:InterestRateContractMember2020-07-012020-12-310000319201us-gaap:SalesMemberus-gaap:InterestRateContractMember2019-07-012019-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:InterestRateContractMember2019-07-012019-12-310000319201us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2019-07-012019-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:InterestRateContractMember2019-07-012019-12-310000319201us-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2020-07-012020-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:ForeignExchangeContractMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-07-012020-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:ForeignExchangeContractMember2020-07-012020-12-310000319201us-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2019-07-012019-12-310000319201klac:CostOfSalesAndOperatingExpenseMemberus-gaap:ForeignExchangeContractMember2019-07-012019-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2019-07-012019-12-310000319201klac:InterestIncomeAndOtherNetMemberus-gaap:ForeignExchangeContractMember2019-07-012019-12-310000319201us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongMember2020-12-310000319201us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongMember2020-06-300000319201us-gaap:ShortMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000319201us-gaap:ShortMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300000319201us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongMember2020-12-310000319201us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongMember2020-06-300000319201us-gaap:ShortMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000319201us-gaap:ShortMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2020-12-310000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2020-06-300000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2020-12-310000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2020-06-300000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2020-12-310000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2020-06-300000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2020-12-310000319201us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2020-06-300000319201us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2020-12-310000319201us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2020-06-300000319201us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2020-12-310000319201us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2020-06-300000319201us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2020-12-310000319201us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2020-06-300000319201us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2020-12-310000319201us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2020-06-300000319201us-gaap:OtherCurrentAssetsMember2020-12-310000319201us-gaap:OtherCurrentAssetsMember2020-06-300000319201us-gaap:OtherCurrentLiabilitiesMember2020-12-310000319201us-gaap:OtherCurrentLiabilitiesMember2020-06-300000319201klac:SemiconductorProcessControlMember2020-07-012020-12-310000319201klac:SpecialtySemiconductorProcessMember2020-07-012020-12-310000319201klac:PCBDisplayAndComponentInspectionMember2020-07-012020-12-310000319201us-gaap:AllOtherSegmentsMember2020-07-012020-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2019-10-012019-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2019-07-012019-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2019-10-012019-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2019-07-012019-12-310000319201us-gaap:OperatingSegmentsMemberklac:PCBDisplayAndComponentInspectionMember2020-10-012020-12-310000319201us-gaap:OperatingSegmentsMemberklac:PCBDisplayAndComponentInspectionMember2019-10-012019-12-310000319201us-gaap:OperatingSegmentsMemberklac:PCBDisplayAndComponentInspectionMember2020-07-012020-12-310000319201us-gaap:OperatingSegmentsMemberklac:PCBDisplayAndComponentInspectionMember2019-07-012019-12-310000319201us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2020-10-012020-12-310000319201us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2019-10-012019-12-310000319201us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2020-07-012020-12-310000319201us-gaap:OperatingSegmentsMemberus-gaap:AllOtherSegmentsMember2019-07-012019-12-310000319201us-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201us-gaap:OperatingSegmentsMember2019-10-012019-12-310000319201us-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201us-gaap:OperatingSegmentsMember2019-07-012019-12-310000319201klac:CorporateAndReconcilingItemsMember2020-10-012020-12-310000319201klac:CorporateAndReconcilingItemsMember2019-10-012019-12-310000319201klac:CorporateAndReconcilingItemsMember2020-07-012020-12-310000319201klac:CorporateAndReconcilingItemsMember2019-07-012019-12-310000319201country:CN2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:CNus-gaap:RevenueFromContractWithCustomerMember2020-10-012020-12-310000319201country:CN2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:CNus-gaap:RevenueFromContractWithCustomerMember2019-10-012019-12-310000319201country:CN2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:CNus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201country:CN2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:CNus-gaap:RevenueFromContractWithCustomerMember2019-07-012019-12-310000319201country:TW2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:TWus-gaap:RevenueFromContractWithCustomerMember2020-10-012020-12-310000319201country:TW2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:TWus-gaap:RevenueFromContractWithCustomerMember2019-10-012019-12-310000319201country:TW2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:TWus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201country:TW2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMembercountry:TWus-gaap:RevenueFromContractWithCustomerMember2019-07-012019-12-310000319201country:KR2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:KR2020-10-012020-12-310000319201country:KR2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:KR2019-10-012019-12-310000319201country:KR2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:KR2020-07-012020-12-310000319201country:KR2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:KR2019-07-012019-12-310000319201srt:NorthAmericaMember2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:NorthAmericaMember2020-10-012020-12-310000319201srt:NorthAmericaMember2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:NorthAmericaMember2019-10-012019-12-310000319201srt:NorthAmericaMember2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:NorthAmericaMember2020-07-012020-12-310000319201srt:NorthAmericaMember2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:NorthAmericaMember2019-07-012019-12-310000319201country:JP2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:JP2020-10-012020-12-310000319201country:JP2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:JP2019-10-012019-12-310000319201country:JP2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:JP2020-07-012020-12-310000319201country:JP2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:JP2019-07-012019-12-310000319201klac:EuropeAndIsraelMember2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMemberus-gaap:RevenueFromContractWithCustomerMember2020-10-012020-12-310000319201klac:EuropeAndIsraelMember2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMemberus-gaap:RevenueFromContractWithCustomerMember2019-10-012019-12-310000319201klac:EuropeAndIsraelMember2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMemberus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201klac:EuropeAndIsraelMember2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMemberus-gaap:RevenueFromContractWithCustomerMember2019-07-012019-12-310000319201klac:RestOfAsiaMember2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMemberus-gaap:RevenueFromContractWithCustomerMember2020-10-012020-12-310000319201klac:RestOfAsiaMember2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMemberus-gaap:RevenueFromContractWithCustomerMember2019-10-012019-12-310000319201klac:RestOfAsiaMember2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMemberus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201klac:RestOfAsiaMember2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMemberus-gaap:RevenueFromContractWithCustomerMember2019-07-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2020-10-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2019-10-012019-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2019-07-012019-12-310000319201klac:DefectInspectionMember2020-10-012020-12-310000319201klac:DefectInspectionMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2020-10-012020-12-310000319201klac:DefectInspectionMember2019-10-012019-12-310000319201klac:DefectInspectionMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2019-10-012019-12-310000319201klac:DefectInspectionMember2020-07-012020-12-310000319201klac:DefectInspectionMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2020-07-012020-12-310000319201klac:DefectInspectionMember2019-07-012019-12-310000319201klac:DefectInspectionMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2019-07-012019-12-310000319201klac:PatterningMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMemberus-gaap:ProductConcentrationRiskMember2020-10-012020-12-310000319201klac:PatterningMember2019-10-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMemberus-gaap:ProductConcentrationRiskMember2019-10-012019-12-310000319201klac:PatterningMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMemberus-gaap:ProductConcentrationRiskMember2020-07-012020-12-310000319201klac:PatterningMember2019-07-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMemberus-gaap:ProductConcentrationRiskMember2019-07-012019-12-310000319201klac:SpecialtySemiconductorProcessMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMemberus-gaap:ProductConcentrationRiskMember2020-10-012020-12-310000319201klac:SpecialtySemiconductorProcessMember2019-10-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMemberus-gaap:ProductConcentrationRiskMember2019-10-012019-12-310000319201klac:SpecialtySemiconductorProcessMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMemberus-gaap:ProductConcentrationRiskMember2020-07-012020-12-310000319201klac:SpecialtySemiconductorProcessMember2019-07-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMemberus-gaap:ProductConcentrationRiskMember2019-07-012019-12-310000319201klac:PCBDisplayAndComponentInspectionMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMemberus-gaap:ProductConcentrationRiskMember2020-10-012020-12-310000319201klac:PCBDisplayAndComponentInspectionMember2019-10-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMemberus-gaap:ProductConcentrationRiskMember2019-10-012019-12-310000319201klac:PCBDisplayAndComponentInspectionMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMemberus-gaap:ProductConcentrationRiskMember2020-07-012020-12-310000319201klac:PCBDisplayAndComponentInspectionMember2019-07-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMemberus-gaap:ProductConcentrationRiskMember2019-07-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMemberus-gaap:ProductConcentrationRiskMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMemberus-gaap:ProductConcentrationRiskMember2019-10-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMemberus-gaap:ProductConcentrationRiskMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMemberus-gaap:ProductConcentrationRiskMember2019-07-012019-12-310000319201klac:OtherRevenueMember2020-10-012020-12-310000319201klac:OtherRevenueMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2020-10-012020-12-310000319201klac:OtherRevenueMember2019-10-012019-12-310000319201klac:OtherRevenueMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2019-10-012019-12-310000319201klac:OtherRevenueMember2020-07-012020-12-310000319201klac:OtherRevenueMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2020-07-012020-12-310000319201klac:OtherRevenueMember2019-07-012019-12-310000319201klac:OtherRevenueMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2019-07-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2019-10-012019-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:ProductConcentrationRiskMember2019-07-012019-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:CustomerOneMember2020-10-012020-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:CustomerOneMember2019-10-012019-12-310000319201klac:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2019-10-012019-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:CustomerOneMember2020-07-012020-12-310000319201klac:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:CustomerOneMember2019-07-012019-12-310000319201klac:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2019-07-012019-12-310000319201country:US2020-12-310000319201country:US2020-06-300000319201country:IL2020-12-310000319201country:IL2020-06-300000319201country:SG2020-12-310000319201country:SG2020-06-300000319201srt:EuropeMember2020-12-310000319201srt:EuropeMember2020-06-300000319201klac:RestOfAsiaMember2020-12-310000319201klac:RestOfAsiaMember2020-06-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
(Mark one)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2020
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number 000-09992
KLA CORPORATION
(Exact name of registrant as specified in its charter)
  
Delaware 04-2564110
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
One Technology Drive,Milpitas,California95035
(Address of Principal Executive Offices)(Zip Code)
(408) 875-3000
(Registrant’s telephone number, including area code) 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareKLACThe Nasdaq Stock Market, LLC
The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer ☐
Non-accelerated filer ☐Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No  ☒
As of January 15, 2021, there were 154,074,651 shares of the registrant’s Common Stock, $0.001 par value, outstanding.

Table of Contents
INDEX
 
  Page
Number
PART IFINANCIAL INFORMATION
Item 1
6
Item 2
Item 3
Item 4
PART IIOTHER INFORMATION
Item 1
Item 1A
Item 2
Item 3
Item 4
Item 5
Item 6


 
2
Table of Contents
PART I. FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS
KLA CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
 
(In thousands)December 31,
2020		June 30,
2020
ASSETS
Current assets:
Cash and cash equivalents$1,431,466 $1,234,409 
Marketable securities865,064 746,063 
Accounts receivable, net1,219,189 1,107,413 
Inventories1,420,618 1,310,985 
Other current assets286,617 324,675 
Total current assets5,222,954 4,723,545 
Land, property and equipment, net594,185 519,824 
Goodwill2,045,445 2,045,402 
Deferred income taxes258,734 236,797 
Purchased intangible assets, net1,289,843 1,391,413 
Other non-current assets403,483 362,979 
Total assets$9,814,644 $9,279,960 
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$262,496 $264,280 
Deferred system revenue274,642 336,237 
Deferred service revenue239,618 233,493 
Short-term debt20,000 — 
Other current liabilities1,223,356 865,776 
Total current liabilities2,020,112 1,699,786 
Non-current liabilities:
Long-term debt3,441,465 3,469,670 
Deferred tax liabilities646,028 660,885 
Deferred service revenue88,769 96,325 
Other non-current liabilities667,964 672,284 
Total liabilities6,864,338 6,598,950 
Commitments and contingencies (Notes 9, 14 and 15)
Stockholders’ equity:
Common stock and capital in excess of par value2,104,190 2,090,268 
Retained earnings903,696 654,930 
Accumulated other comprehensive income (loss)(72,704)(79,774)
Total KLA stockholders’ equity2,935,182 2,665,424 
Non-controlling interest in consolidated subsidiaries15,124 15,586 
Total stockholders’ equity2,950,306 2,681,010 
Total liabilities and stockholders’ equity$9,814,644 $9,279,960 
 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
3
Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
 
 Three Months EndedSix Months Ended
December 31,December 31,
(In thousands, except per share amounts)2020201920202019
Revenues:
Product$1,238,023 $1,144,550 $2,383,518 $2,202,525 
Service412,847 364,903 805,972 720,342 
Total revenues1,650,870 1,509,453 3,189,490 2,922,867 
Costs and expenses:
Costs of revenues669,733 633,618 1,290,295 1,237,859 
Research and development229,064 220,751 448,102 431,331 
Selling, general and administrative181,909 192,253 354,540 380,598 
Interest expense38,880 40,472 78,266 80,822 
Other expense (income), net3,882 (2,568)7,079 (4,186)
Income before income taxes527,402 424,927 1,011,208 796,443 
Provision for income taxes70,419 44,622 134,083 69,742 
Net income456,983 380,305 877,125 726,701 
Less: Net loss attributable to non-controlling interest(268)(250)(693)(379)
Net income attributable to KLA$457,251 $380,555 $877,818 $727,080 
Net income per share attributable to KLA
Basic$2.96 $2.42 $5.67 $4.60 
Diluted$2.94 $2.40 $5.62 $4.56 
Weighted-average number of shares:
Basic154,273 157,290 154,777 157,994 
Diluted155,560 158,620 156,057 159,314 

See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
4
Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
December 31,December 31,
(In thousands)2020201920202019
Net income $456,983 $380,305 $877,125 $726,701 
Other comprehensive income (loss):
Currency translation adjustments:
Cumulative currency translation adjustments8,901 2,844 14,341 406 
Income tax (provision) benefit(787)(247)(1,190)146 
Net change related to currency translation adjustments8,114 2,597 13,151 552 
Cash flow hedges:
Net unrealized gains (losses) arising during the period(1,357)2,290 (2,275)1,548 
Reclassification adjustments for net (gains) losses included in net income1,115 125 1,061 1,652 
Income tax (provision) benefit52 (412)260 (436)
Net change related to cash flow hedges(190)2,003 (954)2,764 
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans(379)(51)(3,498)678 
Available-for-sale securities:
Net unrealized gains (losses) arising during the period(911)616 (1,862)1,799 
Reclassification adjustments for net (gains) losses included in net income(111)82 (212)86 
Income tax (provision) benefit219 (150)445 392 
Net change related to available-for-sale securities(803)548 (1,629)2,277 
Other comprehensive income (loss)6,742 5,097 7,070 6,271 
Less: Comprehensive loss attributable to non-controlling interest(268)(250)(693)(379)
Total comprehensive income attributable to KLA$463,993 $385,652 $884,888 $733,351 

See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
5
Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
Common Stock and
Capital in Excess of
Par Value		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total KLA
Stockholder's
Equity		Non-
Controlling
Interest		Total
Stockholders'
Equity
(In thousands, except per share amounts)SharesAmount
Balance as of June 30, 2020155,461 $2,090,268 $654,930 $(79,774)$2,665,424 $15,586 $2,681,010 
Adoption of ASC 326— — (5,530)— (5,530)— (5,530)
Net income attributable to KLA— — 420,567 — 420,567 — 420,567 
Other comprehensive income — — — 328 328 — 328 
Net loss attributable to non-controlling interest— — — — — (425)(425)
Net issuance under employee stock plans172 (25,145)— — (25,145)— (25,145)
Repurchase of common stock(1,027)(19,400)(174,497)— (193,897)— (193,897)
Cash dividends ($0.90 per share) and dividend equivalents declared
— — (141,555)— (141,555)— (141,555)
Stock-based compensation expense26,992 — — 26,992 — 26,992 
Balance as of September 30, 2020154,606 2,072,715 753,915 (79,446)2,747,184 15,161 2,762,345 
Net income attributable to KLA— — 457,251 — 457,251 — 457,251 
Other comprehensive income — — — 6,742 6,742 — 6,742 
Net loss attributable to non-controlling interest— — — — — (268)(268)
Net issuance under employee stock plans329 15,356 — — 15,356 — 15,356 
Repurchase of common stock(774)(10,477)(167,015)— (177,492)— (177,492)
Cash dividends ($0.90 per share) and dividend equivalents declared
— — (140,455)— (140,455)— (140,455)
Stock-based compensation expense— 26,596 — — 26,596 231 26,827 
Balance as of December 31, 2020154,161 $2,104,190 $903,696 $(72,704)$2,935,182 $15,124 $2,950,306 


Common Stock and
Capital in Excess of
Par Value		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total KLA
Stockholder's
Equity		Non-
Controlling
Interest		Total
Stockholders'
Equity
(In thousands, except per share amounts)SharesAmount
Balance as of June 30, 2019159,475 $2,017,312 $714,825 $(73,029)$2,659,108 $18,585 $2,677,693 
Net income attributable to KLA— — 346,525 — 346,525 — 346,525 
Other comprehensive income — — — 1,174 1,174 — 1,174 
Net loss attributable to non-controlling interest— — — — — (129)(129)
Net issuance under employee stock plans281 (23,423)— — (23,423)— (23,423)
Repurchase of common stock(1,659)(20,988)(207,508)— (228,496)— (228,496)
Cash dividends ($0.75 per share) and dividend equivalents declared
— — (120,669)— (120,669)— (120,669)
Stock-based compensation expense— 26,944 — — 26,944 — 26,944 
Balance as of September 30, 2019158,097 1,999,845 733,173 (71,855)2,661,163 18,456 2,679,619 
Net income attributable to KLA— — 380,555 — 380,555 — 380,555 
Other comprehensive income— — — 5,097 5,097 — 5,097 
Net loss attributable to non-controlling interest— — — — — (250)(250)
Net issuance under employee stock plans442 12,262 — — 12,262 — 12,262 
Repurchase of common stock(1,690)(21,375)(259,218)— (280,593)— (280,593)
Cash dividends ($0.85 per share) and dividend equivalents declared
— — (135,509)— (135,509)— (135,509)
Stock-based compensation expense— 26,789 — — 26,789 — 26,789 
Balance as of December 31, 2019156,849 $2,017,521 $719,001 $(66,758)$2,669,764 $18,206 $2,687,970 

See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
6
Table of Contents

KLA CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
 December 31,
(In thousands)20202019
Cash flows from operating activities:
Net income$877,125 $726,701 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization164,323 187,122 
Loss (gain) on unrealized foreign exchange and other(18,570)4,763 
Asset impairment charges865 2,581 
Stock-based compensation expense53,819 53,733 
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable(117,189)(201,896)
Inventories(112,206)(6,568)
Other assets(51,287)(5,372)
Accounts payable(1,783)54,143 
Deferred system revenue(61,595)(35,245)
Deferred service revenue(1,431)(3,117)
Other liabilities341,181 107,131 
Net cash provided by operating activities1,073,252 883,976 
Cash flows from investing activities:
Proceeds from sale of assets1,855 — 
Business acquisitions, net of cash acquired— (78,530)
Capital expenditures(115,069)(67,440)
Purchases of available-for-sale securities(492,048)(408,482)
Proceeds from sale of available-for-sale securities110,812 35,736 
Proceeds from maturity of available-for-sale securities259,327 357,450 
Purchases of trading securities(35,371)(21,873)
Proceeds from sale of trading securities39,668 27,212 
Proceeds from other investments614 1,086 
Net cash used in investing activities(230,212)(154,841)
Cash flows from financing activities:
Proceeds from issuance of debt, net of issuance costs40,343 — 
Proceeds from revolving credit facility— 250,000 
Repayment of debt(50,000)(275,000)
Common stock repurchases(365,389)(513,089)
Payment of dividends to stockholders(280,748)(256,332)
Issuance of common stock26,356 24,613 
Tax withholding payments related to vested and released restricted stock units(36,145)(35,775)
Payment of contingent consideration payable— (60)
Net cash used in financing activities(665,583)(805,643)
Effect of exchange rate changes on cash and cash equivalents19,600 378 
Net increase (decrease) in cash and cash equivalents197,057 (76,130)
Cash and cash equivalents at beginning of period1,234,409 1,015,994 
Cash and cash equivalents at end of period$1,431,466 $939,864 
Supplemental cash flow disclosures:
Income taxes paid$113,949 $70,746 
Interest paid$76,996 $79,486 
Non-cash activities:
Contingent consideration (receivable) payable - financing activities$(8,748)$5,825 
Dividends payable - financing activities$1,203 $3,190 
Unsettled common stock repurchase - financing activities$6,000 $4,000 
Accrued purchases of land, property and equipment - investing activities$25,987 $13,755 
 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
7
Table of Contents
KLA CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)

NOTE 1 – BASIS OF PRESENTATION
Basis of Presentation. For purposes of this report, “KLA,” the “Company,” “we,” “our,” “us,” or similar references mean KLA Corporation, and its majority-owned subsidiaries unless the context requires otherwise. The Condensed Consolidated Financial Statements have been prepared by us 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.
The unaudited interim Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair statement of the financial position, results of operations, comprehensive income, stockholders’ equity and cash flows for the periods indicated. These Condensed Consolidated Financial Statements and notes, however, should be read in conjunction with Item 8 “Financial Statements and Supplementary Data” included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020.
The Condensed Consolidated Financial Statements include the accounts of KLA and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. On February 20, 2019 ("Acquisition Date"), we completed the acquisition of Orbotech Ltd. ("Orbotech") hereinafter referred to as the "Orbotech Acquisition".
The results of operations for the three and six months ended December 31, 2020 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, 2021.
Certain reclassifications have been made to the prior year’s Condensed Consolidated Financial Statements to conform to the current year presentation. The reclassifications did not have material effects on the prior year’s Condensed Consolidated Balance Sheets, Statements of Operations, Comprehensive Income and 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 our 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.
Comparability. Effective July 1, 2020, we adopted Accounting Standard Codification ("ASC") 326, Financial Instruments - Credit Losses. Prior periods were not retrospectively recast and, accordingly, the Consolidated Balance Sheet as of June 30, 2020 and the Condensed Consolidated Statement of Operations for the three and six months ended December 31, 2019 were prepared using accounting standards that were different than those in effect for the three and six months ended December 31, 2020.
Significant Accounting Policies. With the exception of the change for the accounting of credit losses as a result of the adoption of ASC 326, Financial Instruments - Credit Losses, there have been no other material changes to our significant accounting policies summarized in Note 1 “Description of Business and Summary of Significant Accounting Policies” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020.
Credit Losses
Cash Equivalents and Marketable Securities. All highly liquid debt instruments with original or remaining maturities of less than three months at the date of purchase are cash equivalents. Marketable securities are generally classified as available-for-sale for use in current operations, if required, and are reported at fair value, with unrealized gains and non-credit related unrealized losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income (loss)” (“AOCI”). All realized gains and losses are recorded in earnings in the period of occurrence. The specific identification method is used to determine the realized gains and losses on investments.
We regularly review the available-for-sale debt securities in an unrealized loss position, and evaluate the current expected credit loss by considering available information relevant to the collectibility of the security, such as historical experience,
8
Table of Contents
market data, issuer-specific factors including credit ratings, default and loss rates of the underlying collateral and structure and credit enhancements, current economic conditions and reasonable and supportable forecasts.
If we do not expect to recover the entire amortized cost of the security, the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security, is recorded as an allowance for credit losses with an offsetting entry to earnings; and the amount that is not credit-related is recognized in other comprehensive income (loss). If we have the intent to sell the security or it is more likely than not that we will be required to sell the security before recovery of its entire amortized cost basis, we first write off any previously recognized allowance for credit losses with an offsetting entry to the security’s amortized cost basis. If the allowance has been fully written off and fair value is less than amortized cost basis, we write down the amortized cost basis of the security to its fair value with an offsetting entry to net income.
There were no credit losses on available-for-sale debt securities recognized for the three and six months ended December 31, 2020 and 2019.
Allowance for Credit Losses. A majority of our accounts receivable are derived from sales to large multinational semiconductor and electronics manufacturers throughout the world. We maintain an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable and changes in such are classified as selling, general and administrative expense in the Condensed Consolidated Statements of Income. We assess collectibility by reviewing accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The allowance for credit losses is reviewed on a quarterly basis to assess the adequacy of the allowance.
For the three and six months ended December 31, 2020, our assessment considered the impact of COVID-19 and estimates of expected credit and collectability trends. The credit losses recognized were not significant for the three and six months ended December 31, 2020 and 2019.
Volatility in market conditions and evolving credit trends are difficult to predict and may cause variability and volatility that may have a material impact on our allowance for credit losses in future periods.
Recent Accounting Pronouncements
Recently Adopted
As explained above, on July 1, 2020 we adopted ASC 326, which was issued by the Financial Accounting Board (“FASB”) in June 2016 as Accounting Standards Update ("ASU") No. 2016-13 Financial Instruments – Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments. The ASU replaced previous incurred loss impairment guidance and established a single expected credit losses allowance framework for financial assets carried at amortized cost. It also eliminated the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses. We adopted ASC 326 using the modified retrospective method, which requires a cumulative-effect adjustment to the opening balance of retained earnings to be recognized on the date of adoption and, accordingly, recorded a net decrease of $5.5 million to retained earnings as of July 1, 2020. Please see the “Credit Losses” accounting policy in the “Significant Accounting Policies” section above.
In August 2018, the FASB issued an accounting standard update which modifies the existing accounting standards for the fair value measurement disclosure. This update eliminates the disclosures of the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy, and the policy for the timing of transfers between levels. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2021 on a retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements.
In August 2018, the FASB issued an accounting standard update to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. Some of the changes include adding a disclosure requirement for significant gains and losses related to changes in the benefit obligation for the period and removing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. We adopted this update beginning in the first quarter of the fiscal year ending June 30, 2021 on a retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements.
In August 2018, the FASB issued an accounting standard update to align the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance clarifies which costs should be
9
Table of Contents
capitalized, including the cost to acquire the license and the related implementation costs. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2021 on a prospective basis, and the adoption had no material impact on our Condensed Consolidated Financial Statements.
Updates Not Yet Effective
In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes in ASC 740, Income Taxes (“ASC 740”). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in ASC 740. The update is effective for us beginning in the first quarter of our fiscal year ending June 30, 2022, and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements.
In August 2020, the FASB issued an accounting standard update to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard eliminates beneficial conversion feature and cash conversion models resulting in more convertible instruments being accounted for as a single unit; and modifies the guidance on the computation of earnings per share for convertible instruments and contracts on an entity’s own equity. The update is effective for us in the first quarter of our fiscal year ending June 30, 2023 and can be adopted either on a fully retrospective basis or modified retrospective basis. Early adoption is permitted from our first quarter of fiscal year ending June 30, 2022. We are currently evaluating the impact of this accounting standard update on our Condensed Consolidated Financial Statements.

NOTE 2 – REVENUE

Contract Balances

The following table represents the opening and closing balances of accounts receivable, net, contract assets and contract liabilities as of the indicated dates.
As ofAs of
(In thousands, except for percentage)December 31, 2020June 30, 2020$ Change% Change
Accounts receivable, net$1,219,189 $1,107,413 $111,776 10 %
Contract assets$94,375 $99,876 $(5,501)(6)%
Contract liabilities$603,029 $666,055 $(63,026)(9)%
Our payment terms and conditions vary by contract type, although the terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of product shipment, with the remainder payable within 30 days of acceptance.
The change in contract assets during the six months ended December 31, 2020 was mainly due to $54.5 million of contract assets reclassified to net accounts receivable as our right to consideration for these contract assets became unconditional, partially offset by $48.7 million of revenue recognized for which the payment is subject to conditions other than passage of time. Contract assets are included in Other current assets on our Condensed Consolidated Balance Sheets.
During the six months ended December 31, 2020, we recognized revenue of $439.9 million that was included in contract liabilities as of July 1, 2020. This was partially offset by the value of products and services billed to customers for which control of the products and service has not transferred to the customers. Contract liabilities are included in current and non-current liabilities on our Condensed Consolidated Balance Sheets.

Remaining Performance Obligations
As of December 31, 2020, we had $2.57 billion of remaining performance obligations, which represents our obligation to deliver products and services, and consists primarily of sales orders where written customer requests have been received. We expect to recognize approximately 5% to 15% of these performance obligations as revenue beyond the next twelve months, subject to risk of delays, pushouts, and cancellation by the customer, usually with limited or no penalties.
Refer to Note 18 “Segment Reporting and Geographic Information” of the Notes to the Condensed Consolidated Financial Statements for information related to revenues by geographic region as well as significant product and service offerings.

10
Table of Contents
NOTE 3 – FAIR VALUE MEASUREMENTS
Our financial assets and liabilities are measured and recorded at fair value, except for our debt and certain equity investments in privately-held companies. Equity investments without a readily available fair value are accounted for using the measurement alternative. The measurement alternative is calculated as cost minus impairment, if any, plus or minus changes resulting from observable price changes.
Our non-financial assets, such as goodwill, intangible assets, and land, property and equipment, 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. We have 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 our cash equivalents, accounts receivable, accounts payable and other current assets and 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.
As of December 31, 2020, the types of instruments valued based on quoted market prices in active markets included money market funds, certain U.S. Treasury securities and U.S. Government agency securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.
The types of instruments valued based on other observable inputs included corporate debt securities, sovereign securities, municipal securities, and certain U.S. Treasury 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 we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants generally are large financial institutions. Our 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.
The fair value of deferred payments and contingent consideration payable, the majority of which were recorded in connection with business combinations, were classified as Level 3 and estimated using significant inputs that were not observable in the market. See Note 6 “Business Combinations” of the Notes to the Condensed Consolidated Financial Statements for additional information.
11
Table of Contents
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 our Condensed Consolidated Balance Sheets as follows:
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsLittle or No Market Activity Inputs
As of December 31, 2020 (In thousands)Total (Level 1) (Level 2) (Level 3)
Assets
Cash equivalents:
Money market funds and other$795,712 $795,712 $— $— 
U.S. Treasury securities15,400 — 15,400 — 
Marketable securities:
Corporate debt securities418,348 — 418,348 — 
Municipal securities39,352 — 39,352 — 
Sovereign securities3,059 — 3,059 — 
U.S. Government agency securities146,096 146,096 — — 
U.S. Treasury securities