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, 2022

We have operating leases for facilities, vehicles and other equipment. Our facility leases are primarily used for administrative functions, research and development (“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 $9.4 million and $9.1 million for the three months ended September 30, 2022 and 2021, respectively. Expense related to short-term leases, which are not recorded on the Condensed Consolidated Balance Sheets, was not material for the three months ended September 30, 2022 and 2021. As of September 30, 2022 and June 30, 2022, the weighted-average

remaining lease term was 4.8 years for both periods, and the weighted-average discount rate for operating leases was 2.30% and 2.18%, respectively.

Supplemental cash flow information related to leases was as follows:


	Three Months Ended September 30,
In thousands	2022		2021
Operating cash outflows from operating leases	$	9,627	$	9,485
Right of use assets obtained in exchange for new operating lease liabilities	$	9,220	$	5,955

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


Fiscal Year Ending June 30:	(In thousands)
2023 (remaining nine months)	$	25,807
2024	27,028
2025	21,023
2026	16,200
2027	11,987
2028 and thereafter	15,499
Total lease payments	117,544
Less imputed interest	(7,054)
Total	$	110,490

As of September 30, 2022, w