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, 2022

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

Lease expense was $36.6 million, $38.9 million and $35.1 million for the fiscal years ended June 30, 2022, 2021 and 2020, 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, 2022 and 2021. As of June 30, 2022 and 2021, the weighted-average remaining lease term was 4.8 years and 4.6 years, respectively and the weighted-average discount rate was 2.18% and 1.64%, respectively.

Supplemental cash flow information related to leases was as follows:


	Year Ended June 30,
(In thousands)	2022		2021
Operating cash outflows from operating leases	$	37,994	$	38,118
ROU assets obtained in exchange for new operating lease liabilities	$	55,886	$	39,292

Maturities of lease liabilities as of June 30, 2022 were as follows:


Fiscal Year Ending June 30:	Amount (In thousands)
2023	$	34,305
2024	25,281
2025	19,348
2026	15,436
2027	11,484
2028 and thereafter	14,850
Total lease payments	120,704
Less imputed interest	(7,117)
Total	$	113,587

As of June 30, 2022, we did not have any material leases that had not yet commenced.