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, 2024

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 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 $54.6 million, $41.8 million and $36.6 million for the fiscal years ended June 30, 2024, 2023 and 2022, 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, 2024 and 2023. As of both June 30, 2024 and 2023, the weighted-average remaining lease term was 6.7 years, and the weighted-average discount rate was 4.30% and 3.36%, as of June 30, 2024 and 2023, respectively.

Supplemental cash flow information related to leases was as follows:


	Year Ended June 30,
(In thousands)	2024		2023
Operating cash outflows from operating leases	$	41,405	$	47,294
ROU assets obtained in exchange for new operating lease liabilities	$	62,505	$	115,377

Maturities of lease liabilities as of June 30, 2024 were as follows:


Fiscal Year Ending June 30:	Amount (In thousands)
2025	$	43,565
2026	38,395
2027	30,962
2028	21,694
2029	18,918
2030 and thereafter	70,637
Total lease payments	224,171
Less imputed interest	(34,663)
Total	$	189,508

As of June 30, 2024, we did not have any material leases that had not yet commenced.