0000319201-22-000006.txt : 20220128 0000319201-22-000006.hdr.sgml : 20220128 20220128162400 ACCESSION NUMBER: 0000319201-22-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 113 CONFORMED PERIOD OF REPORT: 20211231 FILED AS OF DATE: 20220128 DATE AS OF CHANGE: 20220128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KLA CORP CENTRAL INDEX KEY: 0000319201 STANDARD INDUSTRIAL CLASSIFICATION: OPTICAL INSTRUMENTS & LENSES [3827] IRS NUMBER: 042564110 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-09992 FILM NUMBER: 22569133 BUSINESS ADDRESS: STREET 1: ONE TECHNOLOGY DRIVE CITY: MILPITAS STATE: CA ZIP: 95035 BUSINESS PHONE: 4088753000 MAIL ADDRESS: STREET 1: ONE TECHNOLOGY DRIVE CITY: MILPITAS STATE: CA ZIP: 95035 FORMER COMPANY: FORMER CONFORMED NAME: KLA TENCOR CORP DATE OF NAME CHANGE: 19970505 FORMER COMPANY: FORMER CONFORMED NAME: KLA INSTRUMENTS CORP DATE OF NAME CHANGE: 19920703 10-Q 1 klac-20211231.htm 10-Q klac-20211231
false2022Q2000031920106-30http://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Memberhttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrentP2YP3Y33.3325.00P3Y33.3325.0000003192012021-07-012021-12-3100003192012022-01-14xbrli:shares00003192012021-12-31iso4217:USD00003192012021-06-300000319201us-gaap:ProductMember2021-10-012021-12-310000319201us-gaap:ProductMember2020-10-012020-12-310000319201us-gaap:ProductMember2021-07-012021-12-310000319201us-gaap:ProductMember2020-07-012020-12-310000319201us-gaap:ServiceMember2021-10-012021-12-310000319201us-gaap:ServiceMember2020-10-012020-12-310000319201us-gaap:ServiceMember2021-07-012021-12-310000319201us-gaap:ServiceMember2020-07-012020-12-3100003192012021-10-012021-12-3100003192012020-10-012020-12-3100003192012020-07-012020-12-31iso4217:USDxbrli:shares0000319201us-gaap:CommonStockMember2021-06-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-06-300000319201us-gaap:RetainedEarningsMember2021-06-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000319201us-gaap:ParentMember2021-06-300000319201us-gaap:NoncontrollingInterestMember2021-06-300000319201us-gaap:RetainedEarningsMember2021-07-012021-09-300000319201us-gaap:ParentMember2021-07-012021-09-3000003192012021-07-012021-09-300000319201us-gaap:NoncontrollingInterestMember2021-07-012021-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000319201us-gaap:CommonStockMember2021-07-012021-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-07-012021-09-300000319201us-gaap:CommonStockMember2021-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-09-300000319201us-gaap:RetainedEarningsMember2021-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000319201us-gaap:ParentMember2021-09-300000319201us-gaap:NoncontrollingInterestMember2021-09-3000003192012021-09-300000319201us-gaap:RetainedEarningsMember2021-10-012021-12-310000319201us-gaap:ParentMember2021-10-012021-12-310000319201us-gaap:NoncontrollingInterestMember2021-10-012021-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012021-12-310000319201us-gaap:CommonStockMember2021-10-012021-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-10-012021-12-3100003192012021-12-012021-12-010000319201us-gaap:CommonStockMember2021-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-12-310000319201us-gaap:RetainedEarningsMember2021-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000319201us-gaap:ParentMember2021-12-310000319201us-gaap:NoncontrollingInterestMember2021-12-310000319201us-gaap:CommonStockMember2020-06-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-06-300000319201us-gaap:RetainedEarningsMember2020-06-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000319201us-gaap:ParentMember2020-06-300000319201us-gaap:NoncontrollingInterestMember2020-06-3000003192012020-06-3000003192012019-07-012020-06-300000319201srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2020-06-300000319201us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300000319201srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300000319201us-gaap:RetainedEarningsMember2020-07-012020-09-300000319201us-gaap:ParentMember2020-07-012020-09-3000003192012020-07-012020-09-300000319201us-gaap:NoncontrollingInterestMember2020-07-012020-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000319201us-gaap:CommonStockMember2020-07-012020-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-07-012020-09-300000319201us-gaap:CommonStockMember2020-09-300000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-09-300000319201us-gaap:RetainedEarningsMember2020-09-300000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000319201us-gaap:ParentMember2020-09-300000319201us-gaap:NoncontrollingInterestMember2020-09-3000003192012020-09-300000319201us-gaap:RetainedEarningsMember2020-10-012020-12-310000319201us-gaap:ParentMember2020-10-012020-12-310000319201us-gaap:NoncontrollingInterestMember2020-10-012020-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310000319201us-gaap:CommonStockMember2020-10-012020-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-10-012020-12-310000319201us-gaap:CommonStockMember2020-12-310000319201us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-12-310000319201us-gaap:RetainedEarningsMember2020-12-310000319201us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000319201us-gaap:ParentMember2020-12-310000319201us-gaap:NoncontrollingInterestMember2020-12-3100003192012020-12-31xbrli:pure0000319201srt:MinimumMember2021-12-310000319201srt:MaximumMember2021-12-310000319201srt:MinimumMember2022-01-012021-12-310000319201srt:MaximumMember2022-01-012021-12-3100003192012022-01-012021-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-12-310000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-12-310000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-12-310000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-12-310000319201us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201klac:MoneyMarketBankDepositsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:SovereignDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300000319201us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-10-012021-12-310000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-10-012020-12-310000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-12-310000319201us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-12-310000319201us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000319201us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000319201us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000319201us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300000319201us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-300000319201us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-06-300000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-10-012021-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2020-10-012020-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-07-012021-12-310000319201us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2020-07-012020-12-310000319201us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-10-012021-12-310000319201us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310000319201us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-07-012021-12-310000319201us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-07-012020-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-012021-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-10-012020-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-012021-12-310000319201us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-07-012020-12-310000319201us-gaap:CorporateDebtSecuritiesMember2021-12-310000319201us-gaap:MunicipalBondsMember2021-12-310000319201us-gaap:SovereignDebtSecuritiesMember2021-12-310000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-12-310000319201us-gaap:USTreasurySecuritiesMember2021-12-310000319201us-gaap:CorporateDebtSecuritiesMember2021-06-300000319201us-gaap:MunicipalBondsMember2021-06-300000319201us-gaap:SovereignDebtSecuritiesMember2021-06-300000319201us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-06-300000319201us-gaap:USTreasurySecuritiesMember2021-06-300000319201klac:CorporateAndGovernmentSecuritiesMember2021-12-31klac:investment0000319201klac:September2021AcquisitionMember2021-09-172021-09-170000319201klac:July2021AcquisitionMember2021-07-012021-07-010000319201klac:July2021AcquisitionMember2021-07-010000319201klac:July2021AcquisitionMember2021-12-310000319201klac:July2021AcquisitionMemberklac:WaferInspectionAndPatterningMember2021-07-012021-07-01klac:segment0000319201klac:WaferInspectionAndPatterningMember2021-06-300000319201klac:GlobalServiceAndSupportMember2021-06-300000319201klac:SpecialtySemiconductorProcessMember2021-06-300000319201klac:PCBAndDisplayMember2021-06-300000319201klac:ComponentInspectionMember2021-06-300000319201klac:WaferInspectionAndPatterningMember2021-07-012021-12-310000319201klac:GlobalServiceAndSupportMember2021-07-012021-12-310000319201klac:SpecialtySemiconductorProcessMember2021-07-012021-12-310000319201klac:PCBAndDisplayMember2021-07-012021-12-310000319201klac:ComponentInspectionMember2021-07-012021-12-310000319201klac:WaferInspectionAndPatterningMember2021-12-310000319201klac:GlobalServiceAndSupportMember2021-12-310000319201klac:SpecialtySemiconductorProcessMember2021-12-310000319201klac:PCBAndDisplayMember2021-12-310000319201klac:ComponentInspectionMember2021-12-310000319201klac:OtherReportingUnitsMember2021-12-310000319201klac:OtherReportingUnitsMember2021-06-3000003192012020-07-012021-06-300000319201srt:MinimumMemberklac:ExistingTechnologyMember2021-07-012021-12-310000319201klac:ExistingTechnologyMembersrt:MaximumMember2021-07-012021-12-310000319201klac:ExistingTechnologyMember2021-12-310000319201klac:ExistingTechnologyMember2021-06-300000319201srt:MinimumMemberus-gaap:CustomerRelationshipsMember2021-07-012021-12-310000319201srt:MaximumMemberus-gaap:CustomerRelationshipsMember2021-07-012021-12-310000319201us-gaap:CustomerRelationshipsMember2021-12-310000319201us-gaap:CustomerRelationshipsMember2021-06-300000319201klac:TradeNameTrademarkMembersrt:MinimumMember2021-07-012021-12-310000319201klac:TradeNameTrademarkMembersrt:MaximumMember2021-07-012021-12-310000319201klac:TradeNameTrademarkMember2021-12-310000319201klac:TradeNameTrademarkMember2021-06-300000319201srt:MinimumMemberus-gaap:OtherIntangibleAssetsMember2021-07-012021-12-310000319201us-gaap:OtherIntangibleAssetsMembersrt:MaximumMember2021-07-012021-12-310000319201us-gaap:OtherIntangibleAssetsMember2021-12-310000319201us-gaap:OtherIntangibleAssetsMember2021-06-300000319201us-gaap:InProcessResearchAndDevelopmentMember2021-12-310000319201us-gaap:InProcessResearchAndDevelopmentMember2021-06-300000319201us-gaap:CostOfSalesMember2021-10-012021-12-310000319201us-gaap:CostOfSalesMember2020-10-012020-12-310000319201us-gaap:CostOfSalesMember2021-07-012021-12-310000319201us-gaap:CostOfSalesMember2020-07-012020-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2021-10-012021-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2020-10-012020-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-12-310000319201us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-12-310000319201klac:SeniorNotesDueNovember12024Memberus-gaap:SeniorNotesMember2021-12-310000319201klac:SeniorNotesDueNovember12024Memberus-gaap:SeniorNotesMember2021-06-300000319201klac:SeniorNotesDueNovember12034Memberus-gaap:SeniorNotesMember2021-12-310000319201klac:SeniorNotesDueNovember12034Memberus-gaap:SeniorNotesMember2021-06-300000319201us-gaap:SeniorNotesMemberklac:SeniorNotesDueMarch152029Member2021-12-310000319201us-gaap:SeniorNotesMemberklac:SeniorNotesDueMarch152029Member2021-06-300000319201klac:SeniorNotesDueMarch152049Memberus-gaap:SeniorNotesMember2021-12-310000319201klac:SeniorNotesDueMarch152049Memberus-gaap:SeniorNotesMember2021-06-300000319201klac:SeniorNotesDueMarch12050Memberus-gaap:SeniorNotesMember2021-12-310000319201klac:SeniorNotesDueMarch12050Memberus-gaap:SeniorNotesMember2021-06-300000319201klac:A3590NotePayableDueOnFebruary202022Memberus-gaap:NotesPayableToBanksMember2021-12-310000319201klac:A3590NotePayableDueOnFebruary202022Memberus-gaap:NotesPayableToBanksMember2021-06-300000319201klac:A2020SeniorNotesMemberus-gaap:SeniorNotesMember2020-02-290000319201klac:A2019SeniorNotesMemberus-gaap:SeniorNotesMember2019-03-310000319201klac:A2014SeniorNotesMemberus-gaap:SeniorNotesMember2014-11-300000319201klac:A2014SeniorNotesMemberus-gaap:SeniorNotesMember2017-10-012017-12-310000319201klac:A2014SeniorNotesMemberus-gaap:SeniorNotesMember2019-10-012019-12-310000319201klac:A2014SeniorNotesMemberus-gaap:SeniorNotesMember2020-01-012020-03-310000319201klac:A2014SeniorNotesMemberus-gaap:SeniorNotesMember2021-12-310000319201us-gaap:SeniorNotesMember2021-07-012021-12-310000319201us-gaap:SeniorNotesMember2021-12-310000319201us-gaap:SeniorNotesMember2021-06-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-12-310000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-07-012021-09-300000319201srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberklac:AlternativeBaseRateMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMemberklac:AlternativeBaseRateMembersrt:MaximumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:LineOfCreditMember2017-11-012017-11-300000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:LineOfCreditMember2021-07-012021-12-310000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-07-012021-12-310000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2017-11-012017-11-30klac:quarter0000319201us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2017-11-300000319201us-gaap:NotesPayableToBanksMember2020-12-310000319201us-gaap:NotesPayableToBanksMember2021-02-202021-02-200000319201us-gaap:NotesPayableToBanksMember2021-12-310000319201srt:MinimumMember2021-07-012021-12-310000319201srt:MaximumMember2021-07-012021-12-310000319201klac:TwoThousandFourPlanMember2021-12-310000319201klac:AssumedEquityPlansMember2021-12-310000319201klac:TwoThousandFourPlanMember2021-06-300000319201klac:TwoThousandFourPlanMember2021-07-012021-12-310000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMemberklac:SeniorManagementMember2021-12-310000319201us-gaap:RestrictedStockUnitsRSUMemberklac:TwoThousandFourPlanMember2021-06-300000319201us-gaap:RestrictedStockUnitsRSUMemberklac:TwoThousandFourPlanMember2021-07-012021-12-310000319201us-gaap:RestrictedStockUnitsRSUMemberklac:TwoThousandFourPlanMember2021-12-310000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMemberklac:TwoThousandFourPlanMember2021-12-310000319201srt:MinimumMemberklac:RestrictedStockUnitServiceBasedMember2021-07-012021-12-310000319201srt:MaximumMemberklac:RestrictedStockUnitServiceBasedMember2021-07-012021-12-310000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMember2021-07-012021-12-31klac:Installment0000319201klac:RestrictedStockUnitMarketBasedAndServiceBasedMember2021-07-012021-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2021-10-012021-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2020-10-012020-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-12-310000319201us-gaap:RestrictedStockUnitsRSUMember2021-12-310000319201klac:CashLongTermIncentivePlanMember2021-07-012021-12-310000319201klac:CashLongTermIncentivePlanMember2020-07-012020-12-310000319201srt:MinimumMemberklac:CashLongTermIncentivePlanMember2021-07-012021-12-310000319201klac:CashLongTermIncentivePlanMembersrt:MaximumMember2021-07-012021-12-310000319201klac:CashLongTermIncentivePlanMember2021-10-012021-12-310000319201klac:CashLongTermIncentivePlanMember2020-10-012020-12-310000319201klac:CashLongTermIncentivePlanMember2021-12-310000319201us-gaap:EmployeeStockMember2021-12-310000319201us-gaap:EmployeeStockMember2021-07-012021-12-310000319201us-gaap:EmployeeStockMember2021-10-012021-12-310000319201us-gaap:EmployeeStockMember2020-10-012020-12-310000319201us-gaap:EmployeeStockMember2020-07-012020-12-310000319201us-gaap:AdditionalPaidInCapitalMember2021-10-012021-12-310000319201us-gaap:AdditionalPaidInCapitalMember2020-10-012020-12-310000319201us-gaap:AdditionalPaidInCapitalMember2021-07-012021-12-310000319201us-gaap:AdditionalPaidInCapitalMember2020-07-012020-12-310000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMember2021-12-310000319201klac:RestrictedStockUnitPerformanceBasedAndServiceBasedMember2021-06-300000319201klac:OrbographLtd.Member2021-12-310000319201klac:OrbotechLTSolarLLCMember2021-12-3100003192012021-07-290000319201us-gaap:CommonStockMember2021-07-012021-12-310000319201us-gaap:CommonStockMember2020-07-012020-12-310000319201us-gaap:ForeignCountryMember2021-10-012021-12-310000319201us-gaap:ForeignCountryMember2021-07-012021-12-310000319201klac:OrbotechMemberus-gaap:IsraelTaxAuthorityMemberus-gaap:ForeignCountryMember2017-05-012020-06-30iso4217:ILS0000319201us-gaap:IsraelTaxAuthorityMemberus-gaap:ForeignCountryMember2017-05-012020-06-300000319201us-gaap:IsraelTaxAuthorityMemberus-gaap:ForeignCountryMember2018-08-310000319201us-gaap:IsraelTaxAuthorityMemberus-gaap:ForeignCountryMember2020-12-012020-12-310000319201us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembersrt:MaximumMember2021-07-012021-12-310000319201us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberklac:A2020RateLockAgreementsMember2020-01-310000319201us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberklac:A2020RateLockAgreementsMember2020-03-310000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-06-300000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:DesignatedAsHedgingInstrumentMember2015-06-300000319201us-gaap:TreasuryLockMember2021-10-012021-12-310000319201us-gaap:TreasuryLockMember2021-07-012021-12-310000319201us-gaap:TreasuryLockMember2020-10-012020-12-310000319201us-gaap:TreasuryLockMember2020-07-012020-12-310000319201us-gaap:TreasuryLockMember2021-12-31klac:derivativeInstrument0000319201us-gaap:CashFlowHedgingMemberus-gaap:TreasuryLockMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000319201us-gaap:ForeignExchangeContractMember2021-10-012021-12-310000319201us-gaap:ForeignExchangeContractMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMember2021-07-012021-12-310000319201us-gaap:ForeignExchangeContractMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-10-012021-12-310000319201us-gaap:InterestRateContractMemberus-gaap:SalesMember2021-10-012021-12-310000319201us-gaap:InterestRateContractMemberklac:CostOfSalesAndOperatingExpenseMember2021-10-012021-12-310000319201us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2021-10-012021-12-310000319201us-gaap:InterestRateContractMemberklac:InterestIncomeAndOtherNetMember2021-10-012021-12-310000319201us-gaap:InterestRateContractMemberus-gaap:SalesMember2020-10-012020-12-310000319201us-gaap:InterestRateContractMemberklac:CostOfSalesAndOperatingExpenseMember2020-10-012020-12-310000319201us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2020-10-012020-12-310000319201us-gaap:InterestRateContractMemberklac:InterestIncomeAndOtherNetMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2021-10-012021-12-310000319201us-gaap:ForeignExchangeContractMemberklac:CostOfSalesAndOperatingExpenseMember2021-10-012021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-10-012021-12-310000319201us-gaap:ForeignExchangeContractMemberklac:InterestIncomeAndOtherNetMember2021-10-012021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMemberklac:CostOfSalesAndOperatingExpenseMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-10-012020-12-310000319201us-gaap:ForeignExchangeContractMemberklac:InterestIncomeAndOtherNetMember2020-10-012020-12-310000319201us-gaap:InterestRateContractMemberus-gaap:SalesMember2021-07-012021-12-310000319201us-gaap:InterestRateContractMemberklac:CostOfSalesAndOperatingExpenseMember2021-07-012021-12-310000319201us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2021-07-012021-12-310000319201us-gaap:InterestRateContractMemberklac:InterestIncomeAndOtherNetMember2021-07-012021-12-310000319201us-gaap:InterestRateContractMemberus-gaap:SalesMember2020-07-012020-12-310000319201us-gaap:InterestRateContractMemberklac:CostOfSalesAndOperatingExpenseMember2020-07-012020-12-310000319201us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMember2020-07-012020-12-310000319201us-gaap:InterestRateContractMemberklac:InterestIncomeAndOtherNetMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2021-07-012021-12-310000319201us-gaap:ForeignExchangeContractMemberklac:CostOfSalesAndOperatingExpenseMember2021-07-012021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-07-012021-12-310000319201us-gaap:ForeignExchangeContractMemberklac:InterestIncomeAndOtherNetMember2021-07-012021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMemberklac:CostOfSalesAndOperatingExpenseMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMemberklac:InterestIncomeAndOtherNetMember2020-07-012020-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:LongMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:LongMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortMember2021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortMember2021-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortMember2021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortMember2021-06-300000319201us-gaap:LongMemberklac:OtherForeignCurrencyHedgeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000319201us-gaap:LongMemberklac:OtherForeignCurrencyHedgeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000319201klac:OtherForeignCurrencyHedgeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortMember2021-12-310000319201klac:OtherForeignCurrencyHedgeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ShortMember2021-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000319201us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000319201us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000319201us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000319201us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2021-06-300000319201us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2021-12-310000319201us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2021-06-300000319201us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2021-12-310000319201us-gaap:OtherCurrentAssetsMemberus-gaap:NondesignatedMember2021-06-300000319201us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2021-12-310000319201us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2021-06-300000319201us-gaap:OtherCurrentAssetsMember2021-12-310000319201us-gaap:OtherCurrentAssetsMember2021-06-300000319201us-gaap:OtherCurrentLiabilitiesMember2021-12-310000319201us-gaap:OtherCurrentLiabilitiesMember2021-06-300000319201klac:AOCIDerivativeParentMember2021-09-300000319201klac:AOCIDerivativeParentMember2020-09-300000319201klac:AOCIDerivativeParentMember2021-06-300000319201klac:AOCIDerivativeParentMember2020-06-300000319201klac:AOCIDerivativeParentMember2021-10-012021-12-310000319201klac:AOCIDerivativeParentMember2020-10-012020-12-310000319201klac:AOCIDerivativeParentMember2021-07-012021-12-310000319201klac:AOCIDerivativeParentMember2020-07-012020-12-310000319201klac:AOCIDerivativeParentMember2021-12-310000319201klac:AOCIDerivativeParentMember2020-12-310000319201klac:SemiconductorProcessControlMember2021-07-012021-12-310000319201klac:SpecialtySemiconductorProcessMember2021-07-012021-12-310000319201klac:PCBDisplayAndComponentInspectionMember2021-07-012021-12-310000319201us-gaap:AllOtherSegmentsMember2021-07-012021-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2021-10-012021-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2021-07-012021-12-310000319201klac:SemiconductorProcessControlMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2021-10-012021-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2021-07-012021-12-310000319201klac:SpecialtySemiconductorProcessMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201klac:PCBDisplayAndComponentInspectionMemberus-gaap:OperatingSegmentsMember2021-10-012021-12-310000319201klac:PCBDisplayAndComponentInspectionMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201klac:PCBDisplayAndComponentInspectionMemberus-gaap:OperatingSegmentsMember2021-07-012021-12-310000319201klac:PCBDisplayAndComponentInspectionMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2021-10-012021-12-310000319201us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2021-07-012021-12-310000319201us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201us-gaap:OperatingSegmentsMember2021-10-012021-12-310000319201us-gaap:OperatingSegmentsMember2020-10-012020-12-310000319201us-gaap:OperatingSegmentsMember2021-07-012021-12-310000319201us-gaap:OperatingSegmentsMember2020-07-012020-12-310000319201klac:CorporateAndReconcilingItemsMember2021-10-012021-12-310000319201klac:CorporateAndReconcilingItemsMember2020-10-012020-12-310000319201klac:CorporateAndReconcilingItemsMember2021-07-012021-12-310000319201klac:CorporateAndReconcilingItemsMember2020-07-012020-12-310000319201country:TW2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:TW2021-10-012021-12-310000319201country:TW2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:TW2020-10-012020-12-310000319201country:TW2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:TW2021-07-012021-12-310000319201country:TW2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:TW2020-07-012020-12-310000319201country:CN2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:CN2021-10-012021-12-310000319201country:CN2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:CN2020-10-012020-12-310000319201country:KR2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:KR2021-07-012021-12-310000319201country:CN2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:CN2020-07-012020-12-310000319201country:KR2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:KR2021-10-012021-12-310000319201country:KR2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:KR2020-10-012020-12-310000319201country:CN2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:CN2021-07-012021-12-310000319201country:KR2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:KR2020-07-012020-12-310000319201srt:NorthAmericaMember2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:NorthAmericaMember2021-10-012021-12-310000319201srt:NorthAmericaMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:NorthAmericaMember2020-10-012020-12-310000319201srt:NorthAmericaMember2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:NorthAmericaMember2021-07-012021-12-310000319201srt:NorthAmericaMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:NorthAmericaMember2020-07-012020-12-310000319201country:JP2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:JP2021-10-012021-12-310000319201country:JP2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:JP2020-10-012020-12-310000319201country:JP2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:JP2021-07-012021-12-310000319201country:JP2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembercountry:JP2020-07-012020-12-310000319201klac:EuropeAndIsraelMember2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMember2021-10-012021-12-310000319201klac:EuropeAndIsraelMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMember2020-10-012020-12-310000319201klac:RestOfAsiaMember2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMember2021-07-012021-12-310000319201klac:EuropeAndIsraelMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMember2020-07-012020-12-310000319201klac:RestOfAsiaMember2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMember2021-10-012021-12-310000319201klac:RestOfAsiaMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMember2020-10-012020-12-310000319201klac:EuropeAndIsraelMember2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:EuropeAndIsraelMember2021-07-012021-12-310000319201klac:RestOfAsiaMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMemberklac:RestOfAsiaMember2020-07-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2021-10-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2020-10-012020-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2021-07-012021-12-310000319201us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2020-07-012020-12-310000319201klac:WaferInspectionMember2021-10-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberklac:WaferInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2021-10-012021-12-310000319201klac:WaferInspectionMember2020-10-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberklac:WaferInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2020-10-012020-12-310000319201klac:WaferInspectionMember2021-07-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberklac:WaferInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2021-07-012021-12-310000319201klac:WaferInspectionMember2020-07-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberklac:WaferInspectionMemberus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201klac:PatterningMember2021-10-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMember2021-10-012021-12-310000319201klac:PatterningMember2020-10-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMember2020-10-012020-12-310000319201klac:PatterningMember2021-07-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMember2021-07-012021-12-310000319201klac:PatterningMember2020-07-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PatterningMember2020-07-012020-12-310000319201klac:SpecialtySemiconductorProcessMember2021-10-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMember2021-10-012021-12-310000319201klac:SpecialtySemiconductorProcessMember2020-10-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMember2020-10-012020-12-310000319201klac:SpecialtySemiconductorProcessMember2021-07-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMember2021-07-012021-12-310000319201klac:SpecialtySemiconductorProcessMember2020-07-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:SpecialtySemiconductorProcessMember2020-07-012020-12-310000319201klac:PCBDisplayAndComponentInspectionMember2021-10-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMember2021-10-012021-12-310000319201klac:PCBDisplayAndComponentInspectionMember2020-10-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMember2020-10-012020-12-310000319201klac:PCBDisplayAndComponentInspectionMember2021-07-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMember2021-07-012021-12-310000319201klac:PCBDisplayAndComponentInspectionMember2020-07-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:PCBDisplayAndComponentInspectionMember2020-07-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMember2021-10-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMember2020-10-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMember2021-07-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:ServiceMember2020-07-012020-12-310000319201klac:OtherRevenueMember2021-10-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:OtherRevenueMember2021-10-012021-12-310000319201klac:OtherRevenueMember2020-10-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:OtherRevenueMember2020-10-012020-12-310000319201klac:OtherRevenueMember2021-07-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:OtherRevenueMember2021-07-012021-12-310000319201klac:OtherRevenueMember2020-07-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:OtherRevenueMember2020-07-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2021-10-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2020-10-012020-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2021-07-012021-12-310000319201us-gaap:ProductConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:LargestCustomerMember2021-10-012021-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:SecondLargestCustomerMember2021-10-012021-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:LargestCustomerMember2020-10-012020-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:SecondLargestCustomerMember2020-10-012020-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:LargestCustomerMember2021-07-012021-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:LargestCustomerMember2020-07-012020-12-310000319201us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberklac:SecondLargestCustomerMember2020-07-012020-12-310000319201country:US2021-12-310000319201country:US2021-06-300000319201country:SG2021-12-310000319201country:SG2021-06-300000319201country:IL2021-12-310000319201country:IL2021-06-300000319201srt:EuropeMember2021-12-310000319201srt:EuropeMember2021-06-300000319201klac:RestOfAsiaMember2021-12-310000319201klac:RestOfAsiaMember2021-06-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
(Mark one)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2021
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number 000-09992
KLA CORPORATION
(Exact name of registrant as specified in its charter)
  
Delaware 04-2564110
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
One Technology Drive,Milpitas,California95035
(Address of Principal Executive Offices)(Zip Code)
(408) 875-3000
(Registrant’s telephone number, including area code) 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareKLACThe Nasdaq Stock Market, LLC
The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer ☐
Non-accelerated filer ☐Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No  ☒
As of January 14, 2022, there were 150,715,343 shares of the registrant’s Common Stock, $0.001 par value per share, outstanding.

INDEX
 
  Page
Number
PART IFINANCIAL INFORMATION
Item 1
Item 2
Item 3
Item 4
PART IIOTHER INFORMATION
Item 1
Item 1A
Item 2
Item 3
Item 4
Item 5
Item 6


 
2
PART I. FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS
KLA CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
 
(In thousands)December 31,
2021		June 30,
2021
ASSETS
Current assets:
Cash and cash equivalents$1,657,057 $1,434,610 
Marketable securities1,153,404 1,059,912 
Accounts receivable, net1,728,376 1,305,479 
Inventories1,829,412 1,575,380 
Other current assets333,226 320,867 
Total current assets6,701,475 5,696,248 
Land, property and equipment, net717,178 663,027 
Goodwill2,042,794 2,011,172 
Deferred income taxes662,854 270,461 
Purchased intangible assets, net1,104,991 1,185,311 
Other non-current assets450,945 444,905 
Total assets$11,680,237 $10,271,124 
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$379,875 $342,083 
Deferred system revenue432,854 295,192 
Deferred service revenue307,250 284,936 
Short-term debt20,000 20,000 
Other current liabilities1,636,119 1,161,016 
Total current liabilities2,776,098 2,103,227 
Long-term debt3,424,106 3,422,767 
Deferred tax liabilities679,688 650,623 
Deferred service revenue102,776 87,575 
Other non-current liabilities650,813 631,290 
Total liabilities7,633,481 6,895,482 
Commitments and contingencies (Notes 9, 14 and 15)
Stockholders’ equity:
Common stock and capital in excess of par value2,181,025 2,175,988 
Retained earnings1,943,981 1,277,123 
Accumulated other comprehensive loss(76,479)(75,557)
Total KLA stockholders’ equity4,048,527 3,377,554 
Non-controlling interest in consolidated subsidiaries(1,771)(1,912)
Total stockholders’ equity4,046,756 3,375,642 
Total liabilities and stockholders’ equity$11,680,237 $10,271,124 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
3
KLA CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended December 31,Six Months Ended December 31,
(In thousands, except per share amounts)2021202020212020
Revenues:
Product$1,895,769 $1,238,023 $3,525,657 $2,383,518 
Service456,861 412,847 910,811 805,972 
Total revenues2,352,630 1,650,870 4,436,468 3,189,490 
Costs and expenses:
Costs of revenues908,162 669,733 1,721,786 1,290,295 
Research and development265,031 229,064 523,184 448,102 
Selling, general and administrative213,479 181,909 406,740 354,540 
Interest expense37,852 38,880 76,164 78,266 
Other expense (income), net1,201 3,882 15,341 7,079 
Income before income taxes926,905 527,402 1,693,253 1,011,208 
Provision (benefit) for income taxes209,388 70,419 (92,749)134,083 
Net income717,517 456,983 1,786,002 877,125 
Less: Net income (loss) attributable to non-controlling interest73 (268)141 (693)
Net income attributable to KLA$717,444 $457,251 $1,785,861 $877,818 
Net income per share attributable to KLA
Basic$4.74 $2.96 $11.77 $5.67 
Diluted$4.71 $2.94 $11.68 $5.62 
Weighted-average number of shares:
Basic151,251 154,273 151,791 154,777 
Diluted152,331 155,560 152,886 156,057 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
4
KLA CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended December 31,Six Months Ended December 31,
(In thousands)2021202020212020
Net income $717,517 $456,983 $1,786,002 $877,125 
Other comprehensive income (loss):
Currency translation adjustments:
Cumulative currency translation adjustments(1,391)8,901 (4,146)14,341 
Income tax (provision) benefit78 (787)395 (1,190)
Net change related to currency translation adjustments(1,313)8,114 (3,751)13,151 
Cash flow hedges:
Net unrealized gains (losses) arising during the period6,741 (1,357)7,593 (2,275)
Reclassification adjustments for net (gains) losses included in net income(912)1,115 (2,130)1,061 
Income tax (provision) benefit(963)52 (1,024)260 
Net change related to cash flow hedges4,866 (190)4,439 (954)
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans580 (379)1,208 (3,498)
Available-for-sale securities:
Net unrealized losses arising during the period(3,273)(911)(3,590)(1,862)
Reclassification adjustments for net (gains) losses included in net income3 (111)2 (212)
Income tax benefit702 219 770 445 
Net change related to available-for-sale securities(2,568)(803)(2,818)(1,629)
Other comprehensive income (loss)1,565 6,742 (922)7,070 
Less: Comprehensive income (loss) attributable to non-controlling interest73 (268)141 (693)
Total comprehensive income attributable to KLA$719,009 $463,993 $1,784,939 $884,888 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
5
KLA CORPORATION
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
Common Stock and
Capital in Excess of
Par Value		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)
Total KLA
Stockholders’
Equity
Non-
Controlling
Interest
Total
Stockholders’
Equity
(In thousands, except per share amounts)SharesAmount
Balances as of June 30, 2021152,776 $2,175,988 $1,277,123 $(75,557)$3,377,554 $(1,912)$3,375,642 
Net income attributable to KLA— — 1,068,417 — 1,068,417 — 1,068,417 
Net income attributable to non-controlling interest— — — — — 68 68 
Other comprehensive income — — — (2,487)(2,487)— (2,487)
Net issuance under employee stock plans160 (46,532)— — (46,532)— (46,532)
Repurchase of common stock(1,190)(16,966)(382,711)— (399,677)— (399,677)
Cash dividends ($1.05 per share) and dividend equivalents declared
— — (161,561)— (161,561)— (161,561)
Stock-based compensation expense— 25,216 — — 25,216 — 25,216 
Balances as of September 30, 2021151,746 2,137,706 1,801,268 (78,044)3,860,930 (1,844)3,859,086 
Net income attributable to KLA— — 717,444 — 717,444 — 717,444 
Net income attributable to non-controlling interest— — — — — 73 73 
Other comprehensive income — — — 1,565 1,565 — 1,565 
Net issuance under employee stock plans205 31,157 — — 31,157 — 31,157 
Repurchase of common stock(1,104)(15,604)(414,270)— (429,874)— (429,874)
Cash dividends ($1.05 per share) and dividend equivalents declared
— — (160,461)— (160,461)— (160,461)
Stock-based compensation expense— 27,766 — — 27,766 — 27,766 
Balances as of December 31, 2021150,847 $2,181,025 $1,943,981 $(76,479)$4,048,527 $(1,771)$4,046,756 

Common Stock and
Capital in Excess of
Par Value		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)
Total KLA
Stockholders’
Equity
Non-
Controlling
Interest
Total
Stockholders’
Equity
(In thousands, except per share amounts)SharesAmount
Balances as of June 30, 2020155,461 $2,090,268 $654,930 $(79,774)$2,665,424 $15,586 $2,681,010 
Adoption of ASC 326 — — (5,530)— (5,530)— (5,530)
Net income attributable to KLA— — 420,567 — 420,567 — 420,567 
Net loss attributable to non-controlling interest— — — — — (425)(425)
Other comprehensive income — — — 328 328 — 328 
Net issuance under employee stock plans172 (25,145)— — (25,145)— (25,145)
Repurchase of common stock(1,027)(19,400)(174,497)— (193,897)— (193,897)
Cash dividends ($0.90 per share) and dividend equivalents declared
— — (141,555)— (141,555)— (141,555)
Stock-based compensation expense— 26,992 — — 26,992 — 26,992 
Balances as of September 30, 2020154,606 2,072,715 753,915 (79,446)2,747,184 15,161 2,762,345 
Net income attributable to KLA— — 457,251 — 457,251 — 457,251 
Net loss attributable to non-controlling interest— — — — — (268)(268)
Other comprehensive income— — — 6,742 6,742 — 6,742 
Net issuance under employee stock plans329 15,356 — — 15,356 — 15,356 
Repurchase of common stock(774)(10,477)(167,015)— (177,492)— (177,492)
Cash dividends ($0.90 per share) and dividend equivalents declared
— — (140,455)— (140,455)— (140,455)
Stock-based compensation expense— 26,596 — — 26,596 231 26,827 
Balances as of December 31, 2020154,161 $2,104,190 $903,696 $(72,704)$2,935,182 $15,124 $2,950,306 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
6

KLA CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Six Months Ended December 31,
(In thousands)20212020
Cash flows from operating activities:
Net income$1,786,002 $877,125 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization170,369 164,323 
Unrealized foreign exchange (gain) loss and other21,728 (18,570)
Asset impairment charges5,962 865 
Stock-based compensation expense52,982 53,819 
Deferred income taxes(371,228)(39,507)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable(444,685)(117,189)
Inventories(239,890)(112,206)
Other assets2,243 (11,780)
Accounts payable40,579 (1,783)
Deferred system revenue145,856 (61,595)
Deferred service revenue33,468 (1,431)
Other liabilities471,209 341,181 
Net cash provided by operating activities1,674,595 1,073,252 
Cash flows from investing activities:
Proceeds from sale of assets— 1,855 
Business acquisitions, net of cash acquired(37,986)— 
Capital expenditures(133,856)(115,069)
Purchases of available-for-sale securities(525,840)(492,048)
Proceeds from sale of available-for-sale securities40,792 110,812 
Proceeds from maturity of available-for-sale securities372,953 259,327 
Purchases of trading securities(58,342)(35,371)
Proceeds from sale of trading securities59,914 39,668 
Proceeds from other investments795 614 
Net cash used in investing activities(281,570)(230,212)
Cash flows from financing activities:
Proceeds from issuance of debt, net of issuance costs— 40,343 
Proceeds from revolving credit facility300,000 — 
Repayment of debt(300,000)(50,000)
Common stock repurchases(829,551)(365,389)
Payment of dividends to stockholders(321,950)(280,748)
Issuance of common stock36,912 26,356 
Tax withholding payments related to vested and released restricted stock units(52,287)(36,145)
Net cash used in financing activities(1,166,876)(665,583)
Effect of exchange rate changes on cash and cash equivalents(3,702)19,600 
Net increase in cash and cash equivalents222,447 197,057 
Cash and cash equivalents at beginning of period1,434,610 1,234,409 
Cash and cash equivalents at end of period$1,657,057 $1,431,466 
Supplemental cash flow disclosures:
Income taxes paid$226,943 $113,949 
Interest paid$76,771 $76,996 
Non-cash activities:
Contingent consideration (receivable) payable - financing activities$14,663 $(8,748)
Dividends payable - financing activities$3,737 $3,321 
Unsettled common stock repurchase - financing activities$5,999 $6,000 
Accrued purchases of land, property and equipment - investing activities$18,504 $25,987 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
7
KLA CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)

NOTE 1 – BASIS OF PRESENTATION
Basis of Presentation. For purposes of this report, “KLA,” the “Company,” “we,” “our,” “us,” or similar references mean KLA Corporation and its majority-owned subsidiaries unless the context requires otherwise. The Condensed Consolidated Financial Statements have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations.
The unaudited interim Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for audited financial statements. The balance sheet as of June 30, 2021 was derived from the Company’s audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 but does not include all disclosures required by GAAP for audited financial statements. The unaudited interim Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair statement of the financial position, results of operations, comprehensive income, stockholders’ equity and cash flows for the periods indicated. These Condensed Consolidated Financial Statements and notes, however, should be read in conjunction with Item 8 “Financial Statements and Supplementary Data” included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021.
The Condensed Consolidated Financial Statements include the accounts of KLA and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.
The results of operations for the three and six months ended December 31, 2021 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year ending June 30, 2022.
Management Estimates. The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in applying our accounting policies that affect the reported amounts of assets and liabilities (and related disclosure of contingent assets and liabilities) at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses for the reporting periods. Actual results could differ from those estimates.
Significant Accounting Policies. There have been no material changes to our significant accounting policies summarized in Note 1 “Description of Business and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021.
Recent Accounting Pronouncements
In October 2021, Financial Accounting Standards Board (“FASB”) issued authoritative guidance that requires companies to apply revenue guidance to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination at carrying value. Under the current business combination guidance, such assets and liabilities are recognized by the acquirer at fair value on the acquisition date. This update is effective for us in the first quarter of our fiscal year ending June 30, 2024 and should be applied on a prospective basis. Early adoption is permitted. We are currently evaluating the impact of this guidance on our condensed consolidated financial statements.
Recently Adopted
In December 2019, the FASB issued an Accounting Standards Update (“ASU”) to simplify the accounting for income taxes in Accounting Standards Codification (“ASC”) 740, Income Taxes (“ASC 740”). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in ASC 740. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2022 on a prospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements.
In August 2020, the FASB issued an ASU to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard eliminates beneficial conversion features and cash conversion models resulting in more convertible instruments being accounted for as a single unit, and modifies the guidance on the computation of earnings per share for convertible instruments and contracts on an
8
entity’s own equity. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2022 on a modified retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements.
NOTE 2 – REVENUE
Contract Balances
The following table represents the opening and closing balances of accounts receivable, net, contract assets and contract liabilities as of the indicated dates.
As ofAs of
(Dollar amounts in thousands)December 31, 2021June 30, 2021$ Change% Change
Accounts receivable, net$1,728,376 $1,305,479 $422,897 32 %
Contract assets$96,676 $91,052 $5,624 6 %
Contract liabilities$842,880 $667,703 $175,177 26 %
Our payment terms and conditions vary by contract type, although the terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of product shipment, with the remainder payable within 30 days of acceptance.
The change in contract assets during the six months ended December 31, 2021 was mainly due to $62.1 million of revenue recognized for which the payment is subject to conditions other than passage of time, partially offset by $56.9 million of contract assets reclassified to net accounts receivable as our right to consideration for these contract assets became unconditional. Contract assets are included in Other current assets on our Condensed Consolidated Balance Sheets.
The change in contract liabilities during the six months ended December 31, 2021 was mainly due to the recognition in revenue of $424.4 million that was included in contract liabilities as of July 1, 2021, partially offset by the value of products and services billed to customers for which control of the products and service has not transferred to the customers. The change in contract liabilities during the six months ended December 31, 2020 was mainly due to the recognition in revenue of $439.9 million that was included in contract liabilities as of July 1, 2020, partially offset by the value of products and services billed to customers for which control of the products and service has not transferred to the customers. Contract liabilities are included in current and non-current liabilities on our Condensed Consolidated Balance Sheets.

Remaining Performance Obligations
As of December 31, 2021, we had $8.35 billion of remaining performance obligations, which represents our obligation to deliver products and services, and consists primarily of sales orders where written customer requests have been received. We expect to recognize approximately 25% to 40% of these performance obligations as revenue beyond the next 12 months, but this estimate is subject to constant change depending upon supply chain constraints, customer slot change requests and potential elevated demand levels which could have even longer lead times.
Refer to Note 18 “Segment Reporting and Geographic Information” to our Condensed Consolidated Financial Statements for information related to revenues by geographic region as well as significant product and service offerings.
NOTE 3 – FAIR VALUE MEASUREMENTS
Our financial assets and liabilities are measured and recorded at fair value, except for our debt and certain equity investments in privately held companies. Equity investments without a readily available fair value are accounted for using the measurement alternative. The measurement alternative is calculated as cost minus impairment, if any, plus or minus changes resulting from observable price changes. See Note 8 “Debt” to our Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes.
Our non-financial assets, such as goodwill, intangible assets, and land, property and equipment, are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred.
Fair Value of Financial Instruments. We have evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of our cash equivalents, accounts receivable, accounts payable and other current assets and liabilities approximate their carrying amounts due to the relatively short maturity of these items.
9
Fair Value Hierarchy. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1  Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2  Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
Level 3  Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Besides the transfer listed in the table below, there were no other transfers between Level 1, Level 2 and Level 3 fair value measurements during the six months ended December 31, 2021.
The types of instruments valued based on quoted market prices in active markets include money market funds, certain U.S. Treasury securities, U.S. Government agency securities and equity securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.
The types of instruments valued based on other observable inputs include corporate debt securities, sovereign securities, municipal securities, and certain U.S. Treasury securities. The market inputs used to value these instruments generally consist of market yields, reported trades and broker/dealer quotes. Such instruments are generally classified within Level 2 of the fair value hierarchy.
The principal market in which we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants generally are large financial institutions. Our foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy.
The fair values of deferred payments and contingent consideration payable, the majority of which were recorded in connection with business combinations, were classified as Level 3 and estimated using significant inputs that were not observable in the market. See Note 6 “Business Combinations” to our Condensed Consolidated Financial Statements for additional information.
10
Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the date indicated below, were presented on our Condensed Consolidated Balance Sheets as follows:
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsLittle or No Market Activity Inputs
As of December 31, 2021 (In thousands)Total (Level 1) (Level 2) (Level 3)
Assets
Cash equivalents:
Money market funds and other$776,782 $776,782 $— $— 
Marketable securities:
Corporate debt securities479,974 — 479,974 — 
Municipal securities67,268 — 67,268 — 
Sovereign securities5,031 — 5,031 — 
U.S. Government agency securities121,089 </