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

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

9 Months Ended

Mar. 31, 2020

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

Lease expense for the three and nine months ended March 31, 2020 was $8.7 million and $26.3 million, respectively. Expense related to short-term leases, which are not recorded on the Condensed Consolidated Balance Sheets, was not material for the three and nine months ended March 31, 2020. At March 31, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.9 years and 1.64%, respectively.

Supplemental cash flow information related to leases was as follows:



Nine months ended March 31, 2020	Amount (In thousands)
Operating cash outflows from operating leases	$	26,048
ROU assets obtained in exchange for new operating lease liabilities	$	13,986

Maturities of lease liabilities as of March 31, 2020 were as follows:



Fiscal year ending June 30:	Amount (In thousands)
2020 (remaining three months)	$	8,146
2021	27,667
2022	20,656
2023	13,926
2024	9,046
2025 and thereafter	20,463
Total lease payments	99,904
Less imputed interest	(3,860		)
Total	$	96,044

As of March 31, 2020, 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