KLA Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

LEASES

12 Months Ended

Jun. 30, 2026

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

Lease expense was $61.4 million, $51.5 million and $54.6 million for the fiscal years ended June 30, 2026, 2025 and 2024, respectively. Expense related to short-term leases, which were not recorded on the Consolidated Balance Sheets, were not material for the fiscal years ended June 30, 2026 and 2025. As of June 30, 2026 and 2025, the weighted-average remaining lease term was 6.5 years and 6.2 years, respectively, and the weighted-average discount rate for operating leases was 3.74% and 4.06%, as of June 30, 2026 and 2025, respectively.

Supplemental cash flow information related to leases was as follows:


	Year Ended June 30,
(In thousands)	2026		2025
Operating cash outflows from operating leases	$	56,558	$	47,183
ROU assets obtained in exchange for new operating lease liabilities	$	101,074	$	46,018

Maturities of lease liabilities as of June 30, 2026 were as follows:


Fiscal Year Ending June 30:	Amount (In thousands)
2027	$	62,474
2028	54,245
2029	42,585
2030	38,615
2031	30,180
2032 and thereafter	73,387
Total lease payments	301,486
Less imputed interest	(37,188)
Total	$	264,298

As of June 30, 2026, we did not have any material leases that had not yet commenced.