KLA Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Sep. 30, 2019

NOTE 9– LEASES

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

Total lease expense for the three months ended September 30, 2019 was $8.7 million and included $0.2 million of costs related to short term leases which are not recorded on the Condensed Consolidated Balance Sheets. At September 30, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 5.2 years and 1.7%, respectively.

Supplemental cash flow information related to leases was as follows:



Three months ended September 30, 2019	Amount (In thousands)
Operating cash outflows from operating leases	8,374
ROU assets obtained in exchange for new operating lease liabilities	2,805

Maturities of lease liabilities as of September 30, 2019 were as follows:



Fiscal year ending June 30,	Amount (In thousands)
2020 (remaining 9 months)	23,347
2021	24,802
2022	18,374
2023	12,827
2024	8,760
2025 and thereafter	20,856
Total lease payments	108,966
Less imputed interest	(4,559	)
Total	104,407

As of September 30, 2019, we did not have material leases that had not yet commenced.

As of June 30, 2019, future minimum lease payments as defined under the previous lease accounting guidance of ASC 840 under noncancelable operating leases were as follows:



Fiscal year ending June 30,	Amount (In thousands)
2020	$	30,296
2021	22,250
2022	16,217
2023	11,878
2024	7,912
2025 and thereafter	15,018
Total minimum lease payments	$	103,571