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, 2021

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

Lease expense was $9.7 million and $29.3 million for the three and nine months ended March 31, 2021, respectively, and $8.7 million and $26.3 million for the three and nine months ended March 31, 2020, 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, 2021 and 2020. As of March 31, 2021 and June 30, 2020, the weighted average remaining lease term was 4.6

years and 5.1 years, respectively, and the weighted average discount rate for operating leases was 1.74% and 1.99%, respectively.

Supplemental cash flow information related to leases was as follows:


	Nine Months Ended March 31,
In thousands	2021		2020
Operating cash outflows from operating leases	$	28,778	$	26,048
ROU assets obtained in exchange for new operating lease liabilities	$	29,155	$	13,986

Maturities of lease liabilities as of March 31, 2021 were as follows:


Fiscal year ending June 30:	Amount (In thousands)
2021 (remaining three months)	$	9,071
2022	31,186
2023	21,804
2024	14,240
2025	11,360
2026 and thereafter	19,284
Total lease payments	106,945
Less imputed interest	(4,803)
Total	$	102,142

As of March 31, 2021, we did not have any material leases that had not yet commenced.