false2025Q1000031920106-30http://fasb.org/us-gaap/2024#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrentP2YP3YP3Y33.3325.00P3Y33.3325.00xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pureklac:investmentklac:segmentklac:reporting_unitklac:extensionklac:quarterklac:installmentklac:derivative_instrument00003192012024-07-012024-09-3000003192012024-10-2100003192012024-09-3000003192012024-06-300000319201us-gaap:ProductMember2024-07-012024-09-300000319201us-gaap:ProductMember2023-07-012023-09-300000319201us-gaap:ServiceMember2024-07-012024-09-300000319201us-gaap:ServiceMember2023-07-012023-09-3000003192012023-07-012023-09-300000319201us-gaap:CommonStockMember2024-06-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2024-06-300000319201us-gaap:RetainedEarningsMember2024-06-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000319201us-gaap:RetainedEarningsMember2024-07-012024-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000319201us-gaap:CommonStockMember2024-07-012024-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2024-07-012024-09-300000319201us-gaap:CommonStockMember2024-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2024-09-300000319201us-gaap:RetainedEarningsMember2024-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000319201us-gaap:CommonStockMember2023-06-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-06-300000319201us-gaap:RetainedEarningsMember2023-06-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000003192012023-06-300000319201us-gaap:RetainedEarningsMember2023-07-012023-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000319201us-gaap:CommonStockMember2023-07-012023-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-07-012023-09-300000319201us-gaap:CommonStockMember2023-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-09-300000319201us-gaap:RetainedEarningsMember2023-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-3000003192012023-09-300000319201srt:MinimumMember2024-09-300000319201srt:MaximumMember2024-09-3000003192012024-10-01srt:MinimumMember2024-09-3000003192012024-10-01srt:MaximumMember2024-09-3000003192012024-10-012024-09-3000003192012025-10-01srt:MinimumMember2024-09-3000003192012025-10-01srt:MaximumMember2024-09-3000003192012025-10-012024-09-300000319201us-gaap:FairValueMeasurementsRecurringMemberklac:MoneyMarketBankDepositsAndOtherMember2024-09-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberklac:MoneyMarketBankDepositsAndOtherMember2024-09-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberklac:MoneyMarketBankDepositsAndOtherMember2024-09-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-09-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-09-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-09-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-09-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-09-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-09-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-09-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-09-300000319201us-gaap:FairValueMeasurementsRecurringMember2024-09-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberklac:MoneyMarketBankDepositsAndOtherMember2024-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberklac:MoneyMarketBankDepositsAndOtherMember2024-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberklac:MoneyMarketBankDepositsAndOtherMember2024-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-06-300000319201us-gaap:FairValueMeasurementsRecurringMember2024-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-06-300000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-07-012024-09-300000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-07-012023-09-300000319201us-gaap:AccumulatedTranslationAdjustmentMember2024-09-300000319201us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-09-300000319201us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-09-300000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-09-300000319201us-gaap:AccumulatedTranslationAdjustmentMember2024-06-300000319201us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-06-300000319201us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-06-300000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-06-300000319201us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000319201us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000319201us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000319201us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-07-012024-09-300000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-012023-09-300000319201us-gaap:CorporateDebtSecuritiesMember2024-09-300000319201us-gaap:MunicipalBondsMember2024-09-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-09-300000319201us-gaap:USTreasurySecuritiesMember2024-09-300000319201us-gaap:CorporateDebtSecuritiesMember2024-06-300000319201us-gaap:MunicipalBondsMember2024-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-06-300000319201us-gaap:USTreasurySecuritiesMember2024-06-300000319201klac:CorporateAndGovernmentSecuritiesMember2024-09-300000319201klac:SemiconductorProcessControlMember2024-06-300000319201klac:SpecialtySemiconductorProcessMember2024-06-300000319201klac:PCBAndComponentInspectionMember2024-06-300000319201klac:SemiconductorProcessControlMember2024-07-012024-09-300000319201klac:SpecialtySemiconductorProcessMember2024-07-012024-09-300000319201klac:PCBAndComponentInspectionMember2024-07-012024-09-300000319201klac:SemiconductorProcessControlMember2024-09-300000319201klac:SpecialtySemiconductorProcessMember2024-09-300000319201klac:PCBAndComponentInspectionMember2024-09-300000319201klac:DisplayMember2024-01-012024-03-310000319201klac:ExistingTechnologyMembersrt:MinimumMember2024-09-300000319201klac:ExistingTechnologyMembersrt:MaximumMember2024-09-300000319201klac:ExistingTechnologyMember2024-09-300000319201klac:ExistingTechnologyMember2024-06-300000319201us-gaap:CustomerRelationshipsMembersrt:MinimumMember2024-09-300000319201us-gaap:CustomerRelationshipsMembersrt:MaximumMember2024-09-300000319201us-gaap:CustomerRelationshipsMember2024-09-300000319201us-gaap:CustomerRelationshipsMember2024-06-300000319201klac:TradeNameTrademarkMembersrt:MinimumMember2024-09-300000319201klac:TradeNameTrademarkMembersrt:MaximumMember2024-09-300000319201klac:TradeNameTrademarkMember2024-09-300000319201klac:TradeNameTrademarkMember2024-06-300000319201us-gaap:OtherIntangibleAssetsMembersrt:MinimumMember2024-09-300000319201us-gaap:OtherIntangibleAssetsMembersrt:MaximumMember2024-09-300000319201us-gaap:OtherIntangibleAssetsMember2024-09-300000319201us-gaap:OtherIntangibleAssetsMember2024-06-300000319201us-gaap:InProcessResearchAndDevelopmentMember2024-09-300000319201us-gaap:InProcessResearchAndDevelopmentMember2024-06-300000319201us-gaap:CostOfSalesMember2024-07-012024-09-300000319201us-gaap:CostOfSalesMember2023-07-012023-09-300000319201klac:SeniorNotesDueNovember12024Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueNovember12024Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueNovember12034Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueNovember12034Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueMarch152029Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueMarch152029Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueMarch152049Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueMarch152049Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueMarch12050Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueMarch12050Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueJuly152032Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueJuly152032Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueJuly152052Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueJuly152052Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueJuly152062Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueJuly152062Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:SeniorNotesDueFebruary12034Memberus-gaap:SeniorNotesMember2024-09-300000319201klac:SeniorNotesDueFebruary12034Memberus-gaap:SeniorNotesMember2024-06-300000319201klac:A2024SeniorNotesMemberus-gaap:SeniorNotesMember2024-02-290000319201klac:SeniorNotesDueFebruary12034Memberus-gaap:SeniorNotesMember2024-02-290000319201klac:SeniorNotesDueJuly152052Memberus-gaap:SeniorNotesMember2024-02-290000319201klac:A2022SeniorNotesMemberus-gaap:SeniorNotesMember2022-06-300000319201klac:A2020SeniorNotesMemberus-gaap:SeniorNotesMember2020-02-290000319201klac:A2019SeniorNotesMemberus-gaap:SeniorNotesMember2019-03-310000319201klac:A2014SeniorNotesMemberus-gaap:SeniorNotesMember2014-11-300000319201us-gaap:SeniorNotesMember2024-07-012024-09-300000319201us-gaap:SeniorNotesMember2024-09-300000319201us-gaap:SeniorNotesMember2024-06-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembersrt:MinimumMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembersrt:MaximumMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberklac:AlternativeBaseRateMembersrt:MinimumMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberklac:AlternativeBaseRateMembersrt:MaximumMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MinimumMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MaximumMember2024-07-012024-09-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberklac:AdjustedTermSecuredOvernightFinancingRateSOFRMember2024-07-012024-09-300000319201srt:MinimumMember2024-07-012024-09-300000319201srt:MaximumMember2024-07-012024-09-300000319201klac:TwoThousandTwentyThreePlanMember2024-09-300000319201klac:TwoThousandTwentyThreePlanMember2024-06-300000319201klac:TwoThousandTwentyThreePlanMember2024-07-012024-09-300000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMemberklac:SeniorManagementMember2024-07-012024-09-300000319201us-gaap:ResearchAndDevelopmentExpenseMember2024-07-012024-09-300000319201us-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-300000319201us-gaap:RestrictedStockUnitsRSUMemberklac:TwoThousandTwentyThreePlanMember2024-06-300000319201us-gaap:RestrictedStockUnitsRSUMemberklac:TwoThousandTwentyThreePlanMember2024-07-012024-09-300000319201us-gaap:RestrictedStockUnitsRSUMemberklac:TwoThousandTwentyThreePlanMember2024-09-300000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMemberklac:TwoThousandTwentyThreePlanMember2024-09-300000319201klac:RestrictedStockUnitServiceBasedMembersrt:MinimumMember2024-07-012024-09-300000319201klac:RestrictedStockUnitServiceBasedMembersrt:MaximumMember2024-07-012024-09-300000319201klac:RestrictedStockUnitMarketBasedAndServiceBasedMembersrt:MinimumMember2024-07-012024-09-300000319201klac:RestrictedStockUnitMarketBasedAndServiceBasedMembersrt:MaximumMember2024-07-012024-09-300000319201us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300000319201us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300000319201us-gaap:RestrictedStockUnitsRSUMember2024-09-300000319201klac:CashBasedLongTermIncentiveProgramMember2024-07-012024-09-300000319201klac:CashBasedLongTermIncentiveProgramMember2023-07-012023-09-300000319201srt:MinimumMemberklac:CashBasedLongTermIncentiveProgramMember2024-07-012024-09-300000319201srt:MaximumMemberklac:CashBasedLongTermIncentiveProgramMember2024-07-012024-09-300000319201klac:CashBasedLongTermIncentiveProgramMember2024-09-300000319201us-gaap:EmployeeStockMember2024-09-300000319201us-gaap:EmployeeStockMember2024-07-012024-09-300000319201us-gaap:EmployeeStockMember2023-07-012023-09-3000003192012024-09-032024-09-030000319201us-gaap:RestrictedStockUnitsRSUMember2024-06-300000319201us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembersrt:MaximumMember2024-07-012024-09-300000319201us-gaap:TreasuryLockMember2024-09-300000319201us-gaap:TreasuryLockMember2024-07-012024-09-300000319201us-gaap:TreasuryLockMember2023-07-012023-09-300000319201us-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2024-07-012024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2023-07-012023-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2024-07-012024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2023-07-012023-09-300000319201us-gaap:SalesMemberus-gaap:TreasuryLockMember2024-07-012024-09-300000319201klac:CostOfRevenuesAndOperatingExpenseMemberus-gaap:TreasuryLockMember2024-07-012024-09-300000319201us-gaap:InterestExpenseMemberus-gaap:TreasuryLockMember2024-07-012024-09-300000319201us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:TreasuryLockMember2024-07-012024-09-300000319201us-gaap:SalesMemberus-gaap:TreasuryLockMember2023-07-012023-09-300000319201klac:CostOfRevenuesAndOperatingExpenseMemberus-gaap:TreasuryLockMember2023-07-012023-09-300000319201us-gaap:InterestExpenseMemberus-gaap:TreasuryLockMember2023-07-012023-09-300000319201us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:TreasuryLockMember2023-07-012023-09-300000319201us-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2024-07-012024-09-300000319201klac:CostOfRevenuesAndOperatingExpenseMemberus-gaap:ForeignExchangeContractMember2024-07-012024-09-300000319201us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2024-07-012024-09-300000319201us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2024-07-012024-09-300000319201us-gaap:SalesMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300000319201klac:CostOfRevenuesAndOperatingExpenseMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300000319201us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300000319201us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2023-07-012023-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:LongMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:LongMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:ShortMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:ShortMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:ShortMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:ShortMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300000319201klac:OtherForeignCurrencyHedgeContractsMemberus-gaap:LongMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201klac:OtherForeignCurrencyHedgeContractsMemberus-gaap:LongMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300000319201klac:OtherForeignCurrencyHedgeContractsMemberus-gaap:ShortMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201klac:OtherForeignCurrencyHedgeContractsMemberus-gaap:ShortMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300000319201us-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000319201us-gaap:DesignatedAsHedgingInstrumentMember2024-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2024-09-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2024-06-300000319201us-gaap:NondesignatedMember2024-09-300000319201us-gaap:NondesignatedMember2024-06-300000319201us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2024-06-300000319201us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2023-06-300000319201us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2024-07-012024-09-300000319201us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2023-07-012023-09-300000319201us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2024-09-300000319201us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2023-09-300000319201us-gaap:RelatedPartyMember2024-07-012024-09-300000319201us-gaap:RelatedPartyMember2023-07-012023-09-300000319201us-gaap:OperatingSegmentsMemberklac:SemiconductorProcessControlMember2024-07-012024-09-300000319201us-gaap:OperatingSegmentsMemberklac:SemiconductorProcessControlMember2023-07-012023-09-300000319201us-gaap:OperatingSegmentsMemberklac:SpecialtySemiconductorProcessMember2024-07-012024-09-300000319201us-gaap:OperatingSegmentsMemberklac:SpecialtySemiconductorProcessMember2023-07-012023-09-300000319201us-gaap:OperatingSegmentsMemberklac:PCBAndComponentInspectionMember2024-07-012024-09-300000319201us-gaap:OperatingSegmentsMemberklac:PCBAndComponentInspectionMember2023-07-012023-09-300000319201us-gaap:OperatingSegmentsMember2024-07-012024-09-300000319201us-gaap:OperatingSegmentsMember2023-07-012023-09-300000319201klac:CorporateAndReconcilingItemsMember2024-07-012024-09-300000319201klac:CorporateAndReconcilingItemsMember2023-07-012023-09-300000319201country:CN2024-07-012024-09-300000319201country:CNus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201country:CN2023-07-012023-09-300000319201country:CNus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201srt:NorthAmericaMember2024-07-012024-09-300000319201srt:NorthAmericaMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201srt:NorthAmericaMember2023-07-012023-09-300000319201srt:NorthAmericaMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201country:TW2024-07-012024-09-300000319201country:TWus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201country:TW2023-07-012023-09-300000319201country:TWus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201country:KR2024-07-012024-09-300000319201country:KRus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201country:KR2023-07-012023-09-300000319201country:KRus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201country:JP2024-07-012024-09-300000319201country:JPus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201country:JP2023-07-012023-09-300000319201country:JPus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:EuropeAndIsraelMember2024-07-012024-09-300000319201klac:EuropeAndIsraelMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:EuropeAndIsraelMember2023-07-012023-09-300000319201klac:EuropeAndIsraelMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:RestOfAsiaMember2024-07-012024-09-300000319201klac:RestOfAsiaMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:RestOfAsiaMember2023-07-012023-09-300000319201klac:RestOfAsiaMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:WaferInspectionMember2024-07-012024-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:WaferInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:WaferInspectionMember2023-07-012023-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:WaferInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:PatterningMember2024-07-012024-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:PatterningMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:PatterningMember2023-07-012023-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:PatterningMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:SpecialtySemiconductorProcessMember2024-07-012024-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:SpecialtySemiconductorProcessMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:SpecialtySemiconductorProcessMember2023-07-012023-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:SpecialtySemiconductorProcessMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:PCBAndComponentInspectionMember2024-07-012024-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:PCBAndComponentInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:PCBAndComponentInspectionMember2023-07-012023-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:PCBAndComponentInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201us-gaap:ProductConcentrationRiskMemberus-gaap:ServiceMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201us-gaap:ProductConcentrationRiskMemberus-gaap:ServiceMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:OtherRevenueMember2024-07-012024-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:OtherRevenueMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:OtherRevenueMember2023-07-012023-09-300000319201us-gaap:ProductConcentrationRiskMemberklac:OtherRevenueMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:TwoCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2024-07-012024-09-300000319201klac:OneCustomerMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2023-07-012023-09-300000319201klac:ThreeCustomersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2024-07-012024-09-300000319201klac:OneCustomerMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-07-012024-06-300000319201country:US2024-09-300000319201country:US2024-06-300000319201srt:EuropeMember2024-09-300000319201srt:EuropeMember2024-06-300000319201country:SG2024-09-300000319201country:SG2024-06-300000319201country:IL2024-09-300000319201country:IL2024-06-300000319201klac:RestOfAsiaMember2024-09-300000319201klac:RestOfAsiaMember2024-06-30
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 September 30, 2024
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 October 21, 2024, there were 133,759,778 shares of the registrant’s Common Stock, $0.001 par value per share, outstanding.

Table of Contents
INDEX
 
  Page
Number
PART IFINANCIAL INFORMATION
Item 1.
Condensed Consolidated Balance Sheets as of September 30, 2024 and June 30, 2024
Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended September 30, 2024 and 2023
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)September 30,
2024		June 30,
2024
ASSETS
Current assets:
Cash and cash equivalents$1,977,202 $1,977,129 
Marketable securities2,652,514 2,526,866 
Accounts receivable, net1,953,156 1,833,041 
Inventories3,109,837 3,034,781 
Other current assets535,730 659,327 
Total current assets10,228,439 10,031,144 
Land, property and equipment, net1,118,312 1,109,968 
Goodwill, net2,015,721 2,015,726 
Deferred income taxes981,591 915,241 
Purchased intangible assets, net612,011 668,764 
Other non-current assets725,663 692,723 
Total assets$15,681,737 $15,433,566 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$376,505 $359,487 
Deferred system revenue877,207 985,856 
Deferred service revenue512,470 501,926 
Current portion of long-term debt749,984 749,936 
Other current liabilities2,282,048 2,063,569 
Total current liabilities4,798,214 4,660,774 
Long-term debt5,881,372 5,880,199 
Deferred tax liabilities471,575 486,690 
Deferred service revenue319,794 294,460 
Other non-current liabilities651,068 743,115 
Total liabilities12,122,023 12,065,238 
Commitments and contingencies (Notes 8, 13 and 14)
Stockholders’ equity:
Common stock and capital in excess of par value2,257,052 2,280,133 
Retained earnings1,328,166 1,137,270 
Accumulated other comprehensive loss(25,504)(49,075)
Total stockholders’ equity3,559,714 3,368,328 
Total liabilities and stockholders’ equity$15,681,737 $15,433,566 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
3
Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended September 30,
(In thousands, except per share amounts)20242023
Revenues:
Product$2,197,389 $1,836,664 
Service644,152 560,292 
Total revenues2,841,541 2,396,956 
Costs and expenses:
Costs of revenues1,147,431 946,891 
Research and development323,145 311,214 
Selling, general and administrative251,042 239,645 
Interest expense82,171 74,234 
Other expense (income), net(40,935)(26,739)
Income before income taxes1,078,687 851,711 
Provision for income taxes132,836 110,336 
Net income945,851 741,375 
Basic$7.05 $5.43 
Diluted$7.01 $5.41 
Weighted-average number of shares:
Basic134,134 136,412 
Diluted134,858 137,104 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
4
Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended September 30,
(In thousands)20242023
Net income $945,851 $741,375 
Other comprehensive income (loss):
Currency translation adjustments:
Cumulative currency translation adjustments10,257 (6,853)
Income tax (provision) benefit(1,148)260 
Net change related to currency translation adjustments9,109 (6,593)
Cash flow hedges:
Net unrealized gains (losses) arising during the period3,098 (1,481)
Reclassification adjustments for net gains included in net income(3,508)(7,108)
Income tax benefit2,213 856 
Net change related to cash flow hedges1,803 (7,733)
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans(232)242 
Available-for-sale securities:
Net unrealized gains arising during the period16,422 1,244 
Reclassification adjustments for net losses included in net income1 12 
Income tax provision(3,532)(269)
Net change related to available-for-sale securities12,891 987 
Other comprehensive income (loss)23,571 (13,097)
Total comprehensive income$969,422 $728,278 
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
Stockholders’
Equity
(In thousands, except per share amounts)SharesAmount
Balances as of June 30, 2024134,425 $2,280,133 $1,137,270 $(49,075)$3,368,328 
Net income— — 945,851 — 945,851 
Other comprehensive income — — — 23,571 23,571 
Net issuance under employee stock plans134 (72,245)— — (72,245)
Repurchase of common stock(740)(12,536)(558,400)— (570,936)
Cash dividends ($1.45 per share) and dividend equivalents declared
— — (196,555)— (196,555)
Stock-based compensation expense— 61,700 — — 61,700 
Balances as of September 30, 2024133,819 2,257,052 1,328,166 (25,504)3,559,714 

Common Stock and
Capital in Excess of
Par Value		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)
Total
Stockholders’
Equity
(In thousands, except per share amounts)SharesAmount
Balance as of June 30, 2023136,750 $2,107,663 $848,431 $(36,341)$2,919,753 
Net income— — 741,375 — 741,375 
Other comprehensive loss — — — (13,097)(13,097)
Net issuance under employee stock plans173 (68,237)— — (68,237)
Repurchase of common stock(956)(14,722)(444,371)— (459,093)
Cash dividends ($1.30 per share) and dividend equivalents declared
— — (179,256)— (179,256)
Stock-based compensation expense— 48,772 — — 48,772 
Balance as of September 30, 2023135,967 2,073,476 966,179 (49,438)2,990,217 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
6
Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended September 30,
(In thousands)20242023
Cash flows from operating activities:
Net income$945,851 $741,375 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization95,823 102,403 
Unrealized foreign exchange loss and other7,718 9,970 
Stock-based compensation expense61,700 48,772 
Deferred income taxes(81,682)(71,322)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable(91,660)107,018 
Inventories(59,326)(138,419)
Other assets152,641 (7,520)
Accounts payable(12,463)8,345 
Deferred system revenue(108,648)14,057 
Deferred service revenue35,863 5,901 
Other liabilities49,421 63,160 
Net cash provided by operating activities995,238 883,740 
Cash flows from investing activities:
Capital expenditures(60,393)(68,045)
Purchases of available-for-sale securities(837,935)(530,842)
Proceeds from sale of available-for-sale securities55,322 7,983 
Proceeds from maturity of available-for-sale securities671,925 201,149 
Purchases of trading securities(17,581)(49,958)
Proceeds from sale of trading securities17,623 48,042 
Net cash used in investing activities(171,039)(391,671)
Cash flows from financing activities:
Common stock repurchases(567,383)(455,412)
Payment of dividends to stockholders(198,079)(181,507)
Tax withholding payments related to vested and released restricted stock units(72,246)(68,237)
Net cash used in financing activities(837,708)(705,156)
Effect of exchange rate changes on cash and cash equivalents13,582 (3,208)
Net increase (decrease) in cash and cash equivalents73 (216,295)
Cash and cash equivalents at beginning of period1,977,129 1,927,865 
Cash and cash equivalents at end of period$1,977,202 $1,711,570 
Supplemental cash flow disclosures:
Income taxes paid, net$96,395 $99,388 
Interest paid$131,126 $113,236 
Non-cash activities:
Contingent consideration payable - financing activities$— $(920)
Dividends payable - financing activities$2,009 $1,853 
Unsettled common stock repurchase - financing activities$5,499 $11,000 
Accrued purchases of land, property and equipment - investing activities$13,849 $22,729 
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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations.
The unaudited interim Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for audited financial statements. The balance sheet as of June 30, 2024 was derived from the Company’s audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, but does not include all disclosures required by GAAP for audited financial statements. 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, 2024.
The Condensed Consolidated Financial Statements include the accounts of KLA and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.
The results of operations for the three months ended September 30, 2024 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, 2025.
Management Estimates. The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP 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 dates 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.
Reclassifications. The Company has reclassified certain prior period balances to conform to the current year presentation. These reclassifications did not impact any prior amounts of reported total assets, total liabilities, stockholders’ equity, results of operations or cash flows.
Significant Accounting Policies. Except for the below additions to our accounting policies, there have been no material changes to our significant accounting policies summarized in Note 1 “Description of Business and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
Government Incentives. We occasionally receive incentives from governmental entities related to capital expenditures, expenses and other activities, primarily in the form of cash grants and tax credits. Government assistance is recognized when there is reasonable assurance that (1) the Company will comply with relevant conditions; and (2) the assistance will be received. Government incentives related to the acquisition or construction of property, plant and equipment are recognized as a reduction in the carrying amounts of the related assets and reduce depreciation expense over the useful lives of the assets. Incentives related to specific operating activities are offset against the related expense in the period the expense is incurred.
Collaborative Arrangements. We assess joint development arrangements to determine whether they are in the scope of Accounting Standards Codification (“ASC”) 808, Collaborative Arrangements. In our assessment, we evaluate whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on commercial success of the activities. This assessment is performed throughout the life of such arrangement with consideration given to the changes in the roles and responsibilities between the parties. During the quarter ended September 30, 2024, we entered into a joint development arrangement within the scope of ASC 808 to develop and commercialize a new product.
8
Table of Contents
Recent Accounting Pronouncements
Recently Adopted
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU") 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expenses. This standard update is effective for our annual reports beginning in the fiscal year ending June 30, 2025 and interim period reports beginning in the first quarter of the fiscal year ending June 30, 2026. Early adoption is permitted on a retrospective basis. We will adopt this update for our annual report for the fiscal year ending June 30, 2025.

Updates Not Yet Effective
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expenses. This standard update is effective for our annual reports beginning in the fiscal year ending June 30, 2026. Early adoption is permitted on a prospective basis. We are currently evaluating the impact of this ASU on our annual income tax disclosures.
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
(Dollar amounts in thousands)September 30, 2024June 30, 2024$ Change% Change
Accounts receivable, net$1,953,156 $1,833,041 $120,115 7 %
Contract assets$71,407 $69,259 $2,148 3 %
Contract liabilities$1,709,471 $1,782,242 $(72,771)(4)%
Our payment terms and conditions vary by contract type, although terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of shipment, with the remainder payable within 30 days of acceptance.
The change in contract assets during the three months ended September 30, 2024 was mainly due to $37.4 million of revenue recognized for which the payment is subject to conditions other than passage of time, largely offset by $35.4 million of contract assets reclassified to accounts receivable, net, as our right to consideration for these contract assets became unconditional. Contract assets are included in other current assets on our Condensed Consolidated Balance Sheets.
The change in contract liabilities during the three months ended September 30, 2024 was mainly due to the recognition in revenue of $870.0 million that was included in contract liabilities as of June 30, 2024, largely offset by an increase in the value of products and services billed to customers for which control of the products and services has not transferred to the customers. Contract liabilities are included in other current liabilities and other non-current liabilities on our Condensed Consolidated Balance Sheets.

Remaining Performance Obligations

As of September 30, 2024, we had $10.04 billion of remaining performance obligations (“RPO”), which represents our obligation to deliver products and services, and primarily consists of sales orders where written customer requests have been received. This amount includes customer deposits of $682.2 million as disclosed in Note 4 “Financial Statement Components” and excludes contract liabilities of $1.71 billion as disclosed above. We expect to recognize approximately 65% to 70% of these performance obligations as revenue in the next 12 months, 25% to 30% in the subsequent 12 months and the remainder thereafter, but this estimate is subject to constant change. The timing of revenue recognition of our RPO is evaluated quarterly and is largely driven by multiple variables, many of which are beyond our control, such as: the readiness of customer fabs, end market needs for capacity, changes in the estimated versus actual start time of customers’ projects, timing of delivery and installation dates, supply chain constraints and changes in regulations. Our customers are currently purchasing equipment from us with lead times that are longer than our historical experience. As customers try to balance the evolution of their technological, production or market needs with the timing and content of orders placed with us, there is elevated risk of order modifications, pushouts or cancellations.

9
Table of Contents
In addition, in October 2022, the U.S. government issued regulations that imposed new export licensing requirements for certain U.S. semiconductor and high-performance computing technology (including wafer fab equipment), for the use of such technology for certain end uses in the People’s Republic of China (“China”), and for the provision of support by U.S. Persons to certain advanced integrated circuit (“IC”) fabs located in China. The regulations impose export license requirements effectively on all KLA products and services to customers located in China that fabricate certain advanced logic, NAND and DRAM ICs. KLA is also restricted from providing certain U.S. origin tools, software and technology to certain wafer fab equipment manufacturers located in China, absent an export license. In October 2023, the U.S. government issued additional regulations that went into effect in November 2023. These additional rules are designed to update export controls on advanced computing semiconductors and semiconductor manufacturing equipment, as well as items that support supercomputing applications and end-uses, to arms embargoed countries, including China. They adjust the parameters included in the existing regulations that determine whether an advanced computing chip is restricted and impose new measures to address risks of circumvention of the controls established in October 2022. The regulations are very complex and, in January 2024, KLA, among other companies, submitted comments to the government regarding these regulations. We are taking appropriate measures to comply with all government regulations, and will continue to apply for export licenses, when required, to avoid disruption to our customers’ operations. While some export licenses have been obtained by us or our customers, there can be no assurance that export licenses applied for by either us or our customers, now or in the future, will be granted.
Refer to Note 17 “Segment Reporting and Geographic Information” to our Condensed Consolidated Financial Statements for information related to revenues by geographic region as well as significant product and service offerings.
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. See Note 7 “Debt” to our Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes, as defined in that Note.
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 and, for goodwill, also annually.
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 1Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2Valuations 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 3Valuations 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. There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the three months ended September 30, 2024.
The types of instruments valued based on quoted market prices in active markets include money market funds, certain U.S. Treasury securities, U.S. Government agency securities and equity securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.
10
Table of Contents
The types of instruments valued based on other observable inputs include corporate debt 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.
Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the dates indicated below, were presented on our Condensed Consolidated Balance Sheets as follows:
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable Inputs
As of September 30, 2024 (In thousands)Total (Level 1) (Level 2)
Assets
Cash equivalents:
Money market funds and other$1,558,751 $1,558,751 $— 
U.S. Treasury securities6,720 — 6,720 
Marketable securities:
Corporate debt securities835,105 — 835,105 
Municipal securities43,673 — 43,673 
U.S. Government agency securities97,887 97,887 — 
U.S. Treasury securities729,376 498,241 231,135 
Equity securities19,654 19,654 — 
Total cash equivalents and marketable securities(1)
3,291,166 2,174,533 1,116,633 
Other current assets:
Derivative assets25,314 — 25,314 
Other non-current assets:
Executive Deferred Savings Plan318,855 286,149 32,706 
Total financial assets(1)
$3,635,335 $2,460,682 $1,174,653 
Liabilities
Derivative liabilities$(31,518)$— $(31,518)
Total financial liabilities$(31,518)$— $(31,518)
________________
(1) Excludes cash of $326.9 million held in operating accounts and time deposits of $1.01 billion (of which $84.9 million were cash equivalents) as of September 30, 2024.
11
Table of Contents
 
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable Inputs
As of June 30, 2024 (In thousands)Total(Level 1)(Level 2)
Assets
Cash equivalents:
Corporate debt securities$2,312 $— $2,312 
Money market funds and other1,585,832 1,585,832 — 
U.S. Treasury securities35,158 — 35,158 
Marketable securities:
Corporate debt securities771,920 — 771,920 
Municipal securities41,159 — 41,159 
U.S. Government agency securities105,874 105,874 — 
U.S. Treasury securities716,148 476,230 239,918 
Equity securities25,566 25,566 — 
Total cash equivalents and marketable securities(1)
3,283,969 2,193,502 1,090,467 
Other current assets:
Derivative assets36,503 — 36,503 
Other non-current assets:
Executive Deferred Savings Plan303,365 272,816 30,549 
Total financial assets(1)
$3,623,837 $2,466,318 $1,157,519 
Liabilities
Derivative liabilities$(15,683)$— $(15,683)
Total financial liabilities$(15,683)$— $(15,683)
________________
(1) Excludes cash of $287.6 million held in operating accounts and time deposits of $932.4 million (of which $66.2 million were cash equivalents) as of June 30, 2024.

12
Table of Contents
NOTE 4 – FINANCIAL STATEMENT COMPONENTS
Condensed Consolidated Balance Sheets
As ofAs of
(In thousands)September 30, 2024June 30, 2024
Accounts receivable, net:
Accounts receivable, gross$1,985,777 $1,865,823 
Allowance for credit losses(32,621)(32,782)
$1,953,156 $1,833,041 
Inventories:
Customer service parts$602,206 $589,751 
Raw materials1,489,622 1,485,400 
Work-in-process736,878 700,895 
Finished goods281,131 258,735 
$3,109,837 $3,034,781 
Other current assets:
Deferred costs of revenues$215,370 $279,879 
Prepaid expenses118,366 124,969 
Contract assets71,407 69,259 
Prepaid income and other taxes58,210 102,398 
Other current assets72,377 82,822 
$535,730 $659,327 
Land, property and equipment, net:
Land$78,259 $78,260 
Buildings and leasehold improvements925,296 919,919 
Machinery and equipment1,139,003 1,116,793 
Office furniture and fixtures64,416 64,480 
Construction-in-process241,060 215,006 
2,448,034 2,394,458 
Less: accumulated depreciation(1,329,722)(1,284,490)
$1,118,312 $1,109,968 
Other non-current assets:
Executive Deferred Savings Plan(1)
$318,855 $303,365 
Operating lease right of use assets250,460 231,812 
Other non-current assets156,348 157,546 
$725,663 $692,723 
Other current liabilities:
Customer deposits$610,630 $645,893 
Compensation and benefits479,471 371,713 
Income taxes payable347,503 146,740 
Executive Deferred Savings Plan(1)
319,432 303,088 
Interest payable77,504 128,727 
Operating lease liabilities40,414 36,391 
Other liabilities and accrued expenses407,094 431,017 
$2,282,048 $2,063,569 
Other non-current liabilities:
Income taxes payable$217,015 $291,106 
Operating lease liabilities154,325 153,117 
Customer deposits71,564 99,794 
Pension liabilities56,924 51,778 
Other non-current liabilities151,240 147,320 
$651,068 $743,115 
13
Table of Contents
________________
(1)We have a non-qualified deferred compensation plan (known as the “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense (benefit) associated with changes in the EDSP liability included in selling, general and administrative (“SG&A”) was $18.0 million and $(9.3) million during the three months ended September 30, 2024 and 2023, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in SG&A expense was $17.9 million and $(9.5) million during the three months ended September 30, 2024 and 2023, respectively. For additional details, refer to Note 1 “Description of Business and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as of the dates indicated below were as follows:
(In thousands)Currency Translation AdjustmentsUnrealized Gains (Losses) on Available-for-Sale SecuritiesUnrealized Gains (Losses) on DerivativesUnrealized Gains (Losses) on Defined Benefit PlansTotal
Balance as of September 30, 2024$(66,737)$9,237 $48,046 $(16,050)$(25,504)
Balance as of June 30, 2024$(75,846)$(3,654)$46,243 $(15,818)$(49,075)
The effects on net income of amounts reclassified from AOCI to the Condensed Consolidated Statements of Operations for the indicated periods were as follows (in thousands; amounts in parentheses indicate debits or reductions to earnings):
AOCI ComponentsThree Months Ended
Location in the Condensed Consolidated Statement of OperationsSeptember 30,
20242023
Unrealized gains on cash flow hedges from foreign exchange and interest rate contractsRevenues$2,535 $3,396 
Costs of revenues and operating expenses26 2,775 
Interest expense947 937 
Net gains reclassified from AOCI$3,508 $7,108 
Unrealized losses on available-for-sale securitiesOther expense (income), net$(1)$(12)
The amount reclassified out of AOCI related to our defined benefit pension plans that was recognized as a component of net periodic cost for the three months ended September 30, 2024 and 2023 was $0.2 million and $0.3 million, respectively. For additional details, refer to Note 13 “Employee Benefit Plans” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
14
Table of Contents
NOTE 5 – MARKETABLE SECURITIES
The amortized cost and fair value of marketable securities as of the dates indicated below were as follows:
As of September 30, 2024 (In thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Corporate debt securities$828,306 $7,102 $(303)$835,105 
Money market funds and other1,558,751 — — 1,558,751 
Municipal securities43,399 294 (20)43,673 
U.S. Government agency securities96,859 1,037 (9)97,887 
U.S. Treasury securities732,428 4,081 (413)736,096 
Subtotal3,259,743 12,514 (745)3,271,512 
Add: Time deposits(1)
1,011,697 — — 1,011,697 
Less: Cash equivalents1,650,347 2 — 1,650,349 
Marketable securities(2)
$2,621,093 $12,512 $(745)$2,632,860 
As of June 30, 2024 (In thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Corporate debt securities$775,277 $973 $(2,018)$774,232 
Money market funds and other1,585,832 — — 1,585,832 
Municipal securities41,343 13 (197)41,159 
U.S. Government agency securities106,101 26 (253)105,874 
U.S. Treasury securities754,505 209 (3,408)751,306 
Subtotal3,263,058 1,221 (5,876)3,258,403 
Add: Time deposits(1)
932,436 — — 932,436 
Less: Cash equivalents1,689,540 — (1)1,689,539 
Marketable securities(2)
$2,505,954 $1,221 $(5,875)$2,501,300 
________________
(1) Time deposits excluded from fair value measurements.
(2) Excludes equity marketable securities.
Our investment portfolio includes both corporate and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. Most of our unrealized losses are due to changes in market interest rates and bond yields. We believe that we have the ability to realize the full value of all these investments upon maturity. As of September 30, 2024, we had 100 investments in a gross unrealized loss position. The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the dates indicated below.
As of September 30, 2024Less than 12 Months12 Months or GreaterTotal
(In thousands)Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Corporate debt securities$33,940 $(20)$66,941 $(283)$100,881 $(303)
Municipal securities1,624 (2)2,443 (18)4,067 (20)
U.S. Government agency securities13,630 (9)— — 13,630 (9)
U.S. Treasury securities35,771 (26)63,733 (387)99,504 (413)
Total$84,965 $(57)$133,117 $(688)$218,082 $(745)
15
Table of Contents
As of June 30, 2024Less than 12 Months12 Months or GreaterTotal
(In thousands)Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Corporate debt securities$355,882 $(942)$100,957 $(1,076)$456,839 $(2,018)
Municipal securities17,364 (81)10,788 (116)28,152 (197)
U.S. Government agency securities58,598 (137)17,197 (116)75,795 (253)
U.S. Treasury securities466,144 (1,040)166,867 (2,368)633,011 (3,408)
Total$897,988 $(2,200)$295,809 $(3,676)$1,193,797 $(5,876)
The contractual maturities of securities classified as available-for-sale, regardless of their classification on our Condensed Consolidated Balance Sheets, as of the date indicated below were as follows:
As of September 30, 2024 (In thousands)Amortized CostFair Value
Due within one year$1,786,826 $1,788,386 
Due after one year through three years834,267 844,474 
Total$2,621,093 $2,632,860 
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains and losses on available-for-sale securities for the three months ended September 30, 2024 and 2023 were immaterial.
The costs for our equity marketable securities were $22.9 million as of both September 30, 2024, and June 30, 2024. Unrealized losses for our equity marketable securities were $5.9 million and $4.3 million during the three months ended September 30, 2024 and 2023, respectively.
NOTE 6 – GOODWILL AND PURCHASED INTANGIBLE ASSETS
Goodwill
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in business combinations. We have three reportable segments, five operating segments and six reporting units.
The following table presents changes in goodwill carrying value by reportable segment during the three months ended September 30, 2024:
(In thousands)Semiconductor Process ControlSpecialty Semiconductor ProcessPrinted Circuit Board (“PCB”) and Component InspectionTotal
Balances as of June 30, 2024
Goodwill$1,030,588 $826,037 $651,324 $2,507,949 
Accumulated impairment losses(277,570)(144,179)(70,474)(492,223)
$753,018 $681,858 $580,850 $2,015,726 
Activity for the three months ended September 30, 2024
Foreign currency adjustments(5)— — (5)
Balances as of September 30, 2024
Goodwill1,030,583 826,037 651,324 $2,507,944 
Accumulated impairment losses(277,570)(144,179)(70,474)(492,223)
$753,013 $681,858 $580,850 $2,015,721 
Goodwill is not subject to amortization but is tested for impairment annually during the third fiscal quarter, as well as whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
As of September 30, 2024, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the assessments performed in the third quarter of the fiscal year ended June 30, 2024. As a result of those assessments, we recorded a $70.5 million impairment charge in the Display reporting unit in the three months ended March 31,
16
Table of Contents
2024. For additional details, refer to Note 7 “Goodwill and Purchased Intangible Assets” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
Purchased Intangible Assets
The components of purchased intangible assets as of the dates indicated below were as follows:
(In thousands) As of September 30, 2024As of June 30, 2024
Category
Range of
Useful 
Lives
(in years)
Gross
Carrying
Amount		Accumulated
Amortization
and
Impairment		Net
Amount		Gross
Carrying
Amount		Accumulated
Amortization
and
Impairment		Net
Amount
Existing technology
4-8
$1,552,074 $1,089,685 $462,389 $1,552,074 $1,045,585 $506,489 
Customer relationships
4-9
358,567 257,125 101,442 358,567 248,106 110,461 
Trade name / Trademark
4-7
119,083 100,691 18,392 119,083 97,106 21,977 
Order backlog and other
<1-7
83,336 82,789 547 83,336 82,740 596 
Intangible assets subject to amortization
2,113,060 1,530,290 582,770 2,113,060 1,473,537 639,523 
In-process research and development46,074 16,833 29,241 46,074 16,833 29,241 
Total$2,159,134 $1,547,123 $612,011 $2,159,134 $1,490,370 $668,764 

Purchased intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. Impairment indicators primarily include declines in our operating cash flows from the use of these assets. If impairment indicators are present, we are required to perform a recoverability test by comparing the sum of estimated undiscounted future cash flows attributable to those long-lived assets to their carrying value.
As of September 30, 2024, there were no impairment indicators for purchased intangible assets.
Amortization expense for purchased intangible assets for the periods indicated below was as follows:
Three Months Ended September 30,
(In thousands)20242023
Amortization expense - Costs of revenues$44,099 $46,088 
Amortization expense - SG&A12,654 17,216 
Total $56,753 $63,304 
Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2024, the remaining estimated annual amortization expense is expected to be as follows:
Fiscal year ending June 30:Amortization (In thousands)
2025 (remaining nine months)$161,654 
2026198,078 
2027125,517 
202848,849 
202934,530 
2030 and thereafter14,142 
Total$582,770 
17
Table of Contents
NOTE 7 – DEBT
The following table summarizes our debt as of September 30, 2024 and June 30, 2024:
As of September 30, 2024As of June 30, 2024
Amount
(In thousands)		Effective
Interest Rate		Amount
(In thousands)		Effective
Interest Rate
Fixed-rate 4.650% Senior Notes due on November 1, 2024
$750,000 4.682 %$750,000 4.682 %
Fixed-rate 5.650% Senior Notes due on November 1, 2034
250,000 5.670 %250,000 5.670 %
Fixed-rate 4.100% Senior Notes due on March 15, 2029
800,000 4.159 %800,000 4.159 %
Fixed-rate 5.000% Senior Notes due on March 15, 2049
400,000 5.047 %400,000 5.047 %
Fixed-rate 3.300% Senior Notes due on March 1, 2050
750,000 3.302 %750,000 3.302 %
Fixed-rate 4.650% Senior Notes due on July 15, 2032
1,000,000 4.657 %1,000,000 4.657 %
Fixed-rate 4.950% Senior Notes due on July 15, 2052
1,450,000 5.023 %1,450,000 5.023 %
Fixed-rate 5.250% Senior Notes due on July 15, 2062
800,000 5.259 %800,000 5.259 %
Fixed-rate 4.700% Senior Notes due on February 1, 2034
500,000 4.777 %500,000 4.777 %
 Total6,700,000 6,700,000 
Unamortized discount/premium, net(24,453)(24,866)
Unamortized debt issuance costs(44,191)(44,999)
Total$6,631,356 $6,630,135 
Reported as:
Current portion of long-term debt$749,984 $749,936 
Long-term debt5,881,372 5,880,199 
Total$6,631,356 $6,630,135 
Senior Notes and Debt Redemption
In February 2024, we issued $750.0 million aggregate principal amount of senior, unsecured notes as follows: $500.0 million of 4.700% senior, unsecured notes (the “2024 Senior Notes”) due February 1, 2034; and an additional $250.0 million of 4.950% senior, unsecured notes due July 15, 2052 which was originally issued in June 2022, resulting in an aggregate principal amount of $1.45 billion. The net proceeds will be used for general corporate purposes, including repayment of outstanding indebtedness at or prior to maturity.
Prior to February 2024, the following aggregate principal amounts of senior, unsecured long-term notes were issued in the following periods: $3.00 billion in June 2022 (the “2022 Senior Notes”), $750.0 million in February 2020 (the “2020 Senior Notes”), $1.20 billion in March 2019 (the “2019 Senior Notes”) and $2.50 billion in November 2014 (the “2014 Senior Notes”). These, along with the 2024 Senior Notes, are collectively referred to as the “Senior Notes.”
The original discounts on the Senior Notes are being amortized over the life of the debt. Interest is payable as follows: semi-annually on February 1 and August 1 of each year for the 2024 Senior Notes; semi-annually on January 15 and July 15 of each year for the 2022 Senior Notes; semi-annually on March 1 and September 1 of each year for the 2020 Senior Notes; semi-annually on March 15 and September 15 of each year for the 2019 Senior Notes; and semi-annually on May 1 and November 1 of each year for the 2014 Senior Notes. The relevant indentures for the Senior Notes (collectively, the “Indenture”) include covenants that limit our ability to grant liens on our facilities and enter into sale and leaseback transactions.
In certain circumstances involving a change of control followed by a downgrade of the rating of a series of Senior Notes by at least two of Moody’s Investors Service, S&P Global Ratings and Fitch Inc., unless we have exercised our rights to redeem the Senior Notes of such series, we will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s Senior Notes of that series pursuant to the offer described below (the “Change of Control Offer”). In the Change of Control Offer, we will be required to offer payment in cash equal to 101% of the aggregate principal amount of Senior Notes repurchased plus accrued and unpaid interest, if any, on the Senior Notes repurchased, up to, but not including, the date of repurchase.
18
Table of Contents
Based on the trading prices of the Senior Notes on the applicable dates, the fair value of the Senior Notes as of September 30, 2024 and June 30, 2024 was $6.59 billion and $6.26 billion, respectively. While the Senior Notes are recorded at cost, the fair value of the long-term debt was determined based on quoted prices in markets that are not active; accordingly, the long-term debt is categorized as Level 2 for purposes of the fair value measurement hierarchy.
As of September 30, 2024, we were in compliance with all of our covenants under the Indenture associated with the Senior Notes.
Revolving Credit Facility    
We have in place a Credit Agreement dated June 8, 2022 (“Credit Agreement”) for an unsecured Revolving Credit Facility (“Revolving Credit Facility”) having a maturity date of June 8, 2027 that allows us to borrow up to $1.50 billion. Subject to the terms of the Credit Agreement, the Revolving Credit Facility may be increased by an amount up to $250.0 million in the aggregate. As of September 30, 2024, we had no outstanding borrowings under the Revolving Credit Facility.
We may borrow, repay and reborrow funds under the Revolving Credit Facility until the maturity date, at which time we may exercise two one-year extension options with the consent of the lenders. We may prepay outstanding borrowings under the Revolving Credit Facility at any time without a prepayment penalty.
Borrowings under the Revolving Credit Facility can be made as Term Secured Overnight Financing Rate (“SOFR”) Loans or Alternate Base Rate (“ABR”) Loans, at the Company’s option. In the event that Term SOFR is unavailable, any Term SOFR elections will be converted to Daily Simple SOFR, if available. Each Term SOFR Loan will bear interest at a rate per annum equal to the applicable Adjusted Term SOFR rate, which is equal to the applicable Term SOFR rate plus 10 bps that shall not be less than zero, plus a spread ranging from 75 bps to 125 bps, as determined by the Company’s credit ratings at the time. Each ABR Loan will bear interest at a rate per annum equal to the ABR plus a spread ranging from 0 bps to 25 bps, as determined by the Company’s credit ratings at the time. We are also obligated to pay an annual commitment fee on the daily undrawn balance of the Revolving Credit Facility, which ranges from 4.5 bps to 12.5 bps, subject to an adjustment in conjunction with changes to our credit rating. The applicable interest rates and commitment fees are also subject to adjustment based on the Company’s performance against certain environmental sustainability key performance indicators (“KPI”) related to greenhouse gas emissions and renewable electricity usage. Our performance against these KPIs in calendar year 2023 resulted in reductions to the fees associated with our Revolving Credit Facility. As of September 30, 2024, we elected to pay interest on borrowings under the Revolving Credit Facility at the applicable Adjusted Term SOFR rate plus a spread of 82.5 bps and the applicable commitment fee on the daily undrawn balance of the Revolving Credit Facility was 5.5 bps.
Under the Credit Agreement, the maximum leverage ratio on a quarterly basis is 3.50 to 1.00, covering the trailing four consecutive fiscal quarters for each fiscal quarter, which may be increased to 4.00 to 1.00 for a period of time in connection with a material acquisition or a series of material acquisitions. As of September 30, 2024, our maximum allowed leverage ratio was 3.50 to 1.00.
We were in compliance with all covenants under the Credit Agreement as of September 30, 2024.
For additional details, refer to Note 8 “Debt” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
NOTE 8 – LEASES
We have operating leases for facilities, vehicles and other equipment. Our facility leases are primarily used for administrative functions, research and development (“R&D”), manufacturing, and storage and distribution. Our finance leases are not material.
Our existing leases do not contain significant restrictive provisions or residual value guarantees; however, certain leases contain provisions for the payment of maintenance, real estate taxes or insurance costs by us. Our leases have remaining lease terms ranging from less than one year to 28 years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised.
Lease expense was $13.1 million and $12.4 million for the three months ended September 30, 2024 and 2023, respectively. Expenses related to short-term leases, which were not recorded on the Condensed Consolidated Balance Sheets, were not material for the three months ended September 30, 2024 and 2023. As of September 30, 2024 and June 30, 2024, the weighted-average remaining lease term was 6.5 and 6.7 years, respectively, and the weighted-average discount rate for operating leases was 4.22% and 4.30%, respectively.
19
Table of Contents
Supplemental cash flow information related to leases was as follows:
Three Months Ended September 30,
In thousands20242023
Operating cash outflows from operating leases$10,856 $10,002 
Right of use assets obtained in exchange for new operating lease liabilities$9,649 $12,968 
Maturities of lease liabilities as of September 30, 2024 were as follows:
Fiscal Year Ending June 30:(In thousands)
2025 (remaining nine months)$36,282 
202644,329 
202733,307 
202822,783 
202920,030 
2030 and thereafter71,131 
Total lease payments227,862 
Less imputed interest(33,123)
Total$194,739 
As of September 30, 2024, we did not have material leases that had not yet commenced.
NOTE 9 – EQUITY AND LONG-TERM INCENTIVE COMPENSATION PLANS
Equity Incentive Program
On August 3, 2023, our Board of Directors adopted the KLA Corporation 2023 Incentive Award Plan (the “2023 Plan”), which replaced our 2004 Equity Incentive Plan (the “2004 Plan”) for grants of equity awards occurring on or after November 1, 2023. The new plan was approved by our stockholders at the annual meeting of stockholders held on November 1, 2023. As of September 30, 2024, 10.0 million shares remained available for issuance under our 2023 Plan. For details of the 2023 Plan, refer to Note 10 “Equity, Long-Term Incentive Compensation Plans and Non-Controlling Interest” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
Equity Incentive Plans - General Information
The following table summarizes the combined activity under our equity incentive plans:
(In thousands)
Available
 For Grant(1)
Balance as of June 30, 202410,240 
Restricted stock units granted(2)
(292)
RSUs granted adjustment(3)
62 
Restricted stock units canceled19 
Balance as of September 30, 202410,029 
__________________ 
(1)The number of restricted stock units (“RSU”) reflects the application of the award multiplier of 2.0x to calculate the impact of the award on the shares reserved under the 2023 Plan.
(2)Includes RSUs granted to senior management during the three months ended September 30, 2024 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such RSUs that are deemed to have been earned) (“performance-based RSU”). This line item includes all such performance-based RSUs granted during the three months ended September 30, 2024 reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied (0.2 million shares for the three months ended September 30, 2024 reflects the application of the multiplier described above).
20
Table of Contents
(3)Represents the portion of RSUs granted with performance-based vesting criteria and reported at the actual number of shares issued upon achievement of the performance vesting criteria during the quarter ended September 30, 2024.
The fair value of stock-based awards is measured at the grant date and is recognized as an expense over the employee’s requisite service period. The fair value for RSUs granted with “dividend equivalent” rights is determined using the closing price of our common stock on the grant date.
The following table shows stock-based compensation expense for the indicated periods: 
Three Months Ended September 30,
(In thousands)20242023
Stock-based compensation expense by:
Costs of revenues$9,789 $