KLA Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LEASES

LEASES

12 Months Ended

Jun. 30, 2023

We have operating leases for facilities, vehicles and other equipment. Our facility leases are primarily used for administrative functions, 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 29 years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised.

Lease expense was $41.8 million, $36.6 million and $38.9 million for the fiscal years ended June 30, 2023, 2022 and 2021, respectively. Expense related to short-term leases, which are not recorded on the Consolidated Balance Sheets, was not material for the fiscal years ended June 30, 2023 and 2022. As of June 30, 2023 and 2022, the weighted-average remaining lease term was 6.7 years and 4.8 years, respectively, and the weighted-average discount rate was 3.36% and 2.18%, respectively.

Supplemental cash flow information related to leases was as follows:


	Year Ended June 30,
(In thousands)	2023		2022
Operating cash outflows from operating leases	$	47,294	$	37,994
ROU assets obtained in exchange for new operating lease liabilities	$	115,377	$	55,886

Maturities of lease liabilities as of June 30, 2023 were as follows:


Fiscal Year Ending June 30:	Amount (In thousands)
2024	$	38,042
2025	34,555
2026	27,732
2027	22,462
2028	14,949
2029 and thereafter	60,612
Total lease payments	198,352
Less imputed interest	(25,956)
Total	$	172,396

As of June 30, 2023, we did not have any material leases that had not yet commenced.