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, 2020

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 16 years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised.

Lease expense was $10.0 million and $19.6 million for the three and six months ended December 31, 2020, respectively, and $9.1 million and $17.6 million for the three and six months ended December 31, 2019, 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, 2020 and 2019. As of December 31, 2020 and June 30, 2020, the weighted average remaining lease term was 4.8 years and 5.1 years, respectively, and the weighted average discount rate for operating leases was 1.80% and 1.99%, respectively.

Supplemental cash flow information related to leases was as follows:


	Six Months Ended December 31,
In thousands	2020		2019
Operating cash outflows from operating leases	$	19,253	$	17,424
ROU assets obtained in exchange for new operating lease liabilities	$	20,584	$	10,278

Maturities of lease liabilities as of December 31, 2020 were as follows:


Fiscal year ending June 30:	Amount (In thousands)
2021 (remaining six months)	$	17,727
2022	28,811
2023	19,987
2024	13,358
2025	11,242
2026 and thereafter	19,823
Total lease payments	110,948
Less imputed interest	(5,285)
Total	$	105,663

As of December 31, 2020, we did not have any material leases that had not yet commenced.