KLA Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

6 Months Ended

Dec. 31, 2019

NOTE 9– LEASES

We have operating leases for facilities, vehicles, and other equipment. Our facility leases are primarily used for administrative functions, research and development, 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 payment of maintenance, real estate taxes, or insurance costs by us. Our leases have remaining lease terms ranging from less than one year to eleven years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised.

Lease expense for the three and six months ended December 31, 2019 was $9.1 million and $17.6 million, respectively. Expense related to short-term leases, which are not recorded on the Condensed Consolidated Balance Sheets, was not material for the three and six months ended December 31, 2019. At December 31, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 5.0 years and 1.67%, respectively.

Supplemental cash flow information related to leases was as follows:



Six months ended December 31, 2019	Amount (In thousands)
Operating cash outflows from operating leases	17,424
ROU assets obtained in exchange for new operating lease liabilities	10,278

Maturities of lease liabilities as of December 31, 2019 were as follows:



Fiscal year ending June 30,	Amount (In thousands)
2020 (remaining 6 months)	16,624
2021	27,013
2022	19,925
2023	13,522
2024	9,033
2025 and thereafter	20,748
Total lease payments	106,865
Less imputed interest	(4,308	)
Total	102,557

As of December 31, 2019, we did not have material leases that had not yet commenced.

As of June 30, 2019, future minimum lease payments as defined under the previous lease accounting guidance of ASC 840 under noncancelable operating leases were as follows:



Fiscal year ending June 30,	Amount (In thousands)
2020	$	30,296
2021	22,250
2022	16,217
2023	11,878
2024	7,912
2025 and thereafter	15,018
Total minimum lease payments	$	103,571