Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2021 | Oct. 18, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-09992 | |
Entity Registrant Name | KLA CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2564110 | |
Entity Address, Address Line One | One Technology Drive, | |
Entity Address, City or Town | Milpitas, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95035 | |
City Area Code | 408 | |
Local Phone Number | 875-3000 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | KLAC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 151,622,165 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000319201 | |
Current Fiscal Year End Date | --06-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,509,564 | $ 1,434,610 |
Marketable securities | 1,115,249 | 1,059,912 |
Accounts receivable, net | 1,463,974 | 1,305,479 |
Inventories | 1,715,339 | 1,575,380 |
Other current assets | 340,546 | 320,867 |
Total current assets | 6,144,672 | 5,696,248 |
Land, property and equipment, net | 698,547 | 663,027 |
Goodwill | 2,041,338 | 2,011,172 |
Deferred income taxes | 665,672 | 270,461 |
Purchased intangible assets, net | 1,157,535 | 1,185,311 |
Other non-current assets | 438,713 | 444,905 |
Total assets | 11,146,477 | 10,271,124 |
Current liabilities: | ||
Accounts payable | 380,827 | 342,083 |
Deferred system revenue | 319,846 | 295,192 |
Deferred service revenue | 286,741 | 284,936 |
Short-term debt | 20,000 | 20,000 |
Other current liabilities | 1,515,596 | 1,161,016 |
Total current liabilities | 2,523,010 | 2,103,227 |
Non-current liabilities: | ||
Long-term debt | 3,423,436 | 3,422,767 |
Deferred tax liabilities | 625,540 | 650,623 |
Deferred service revenue | 94,824 | 87,575 |
Other non-current liabilities | 620,581 | 631,290 |
Total liabilities | 7,287,391 | 6,895,482 |
Commitments and contingencies (Notes 9, 14 and 15) | ||
Stockholders’ equity: | ||
Common stock and capital in excess of par value | 2,137,706 | 2,175,988 |
Retained earnings | 1,801,268 | 1,277,123 |
Accumulated other comprehensive income (loss) | (78,044) | (75,557) |
Total KLA stockholders’ equity | 3,860,930 | 3,377,554 |
Non-controlling interest in consolidated subsidiaries | (1,844) | (1,912) |
Total stockholders’ equity | 3,859,086 | 3,375,642 |
Total liabilities and stockholders’ equity | $ 11,146,477 | $ 10,271,124 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||
Revenues | $ 2,083,838 | $ 1,538,620 |
Costs and expenses: | ||
Costs of revenues | 813,624 | 620,562 |
Research and development | 258,153 | 219,038 |
Selling, general and administrative | 193,261 | 172,631 |
Interest expense | 38,312 | 39,386 |
Other expense (income), net | 14,140 | 3,197 |
Income before income taxes | 766,348 | 483,806 |
Provision (benefit) for income taxes | (302,137) | 63,664 |
Net income | 1,068,485 | 420,142 |
Less: Net income (loss) attributable to non-controlling interest | 68 | (425) |
Net income attributable to KLA | $ 1,068,417 | $ 420,567 |
Net income per share attributable to KLA | ||
Basic (in dollars per share) | $ 7.01 | $ 2.71 |
Diluted (in dollars per share) | $ 6.96 | $ 2.69 |
Weighted-average number of shares: | ||
Basic (in shares) | 152,330 | 155,281 |
Diluted (in shares) | 153,410 | 156,442 |
Product | ||
Revenues: | ||
Revenues | $ 1,629,888 | $ 1,145,495 |
Service | ||
Revenues: | ||
Revenues | $ 453,950 | $ 393,125 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,068,485 | $ 420,142 |
Currency translation adjustments: | ||
Cumulative currency translation adjustments | (2,755) | 5,440 |
Income tax (provision) benefit | 317 | (403) |
Net change related to currency translation adjustments | (2,438) | 5,037 |
Cash flow hedges: | ||
Net unrealized gains (losses) arising during the period | 852 | (918) |
Reclassification adjustments for net (gains) losses included in net income | (1,218) | (54) |
Income tax (provision) benefit | (61) | 208 |
Net change related to cash flow hedges | (427) | (764) |
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans | 628 | (3,119) |
Available-for-sale securities: | ||
Net unrealized gains (losses) arising during the period | (317) | (951) |
Reclassification adjustments for net (gains) losses included in net income | (1) | (101) |
Income tax benefit | 68 | 226 |
Net change related to available-for-sale securities | (250) | (826) |
Other comprehensive income (loss) | (2,487) | 328 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 68 | (425) |
Total comprehensive income attributable to KLA | $ 1,065,930 | $ 420,895 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Total KLA Stockholders’ Equity | Total KLA Stockholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock and Capital in Excess of Par Value, Shares | Common Stock and Capital in Excess of Par Value, Amount | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Non- Controlling Interest |
Beginning balance (in shares) at Jun. 30, 2020 | 155,461 | |||||||||
Beginning balance at Jun. 30, 2020 | $ 2,681,010 | $ (5,530) | $ 2,665,424 | $ (5,530) | $ 2,090,268 | $ 654,930 | $ (5,530) | $ (79,774) | $ 15,586 | |
Increase (Decrease) in Stockholders' Equity | ||||||||||
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 plans (in shares) | 172 | |||||||||
Net issuance under employee stock plans | (25,145) | (25,145) | (25,145) | |||||||
Repurchase of common stock (in shares) | (1,027) | |||||||||
Repurchase of common stock | (193,897) | (193,897) | (19,400) | (174,497) | ||||||
Cash dividends and dividend equivalents declared | (141,555) | (141,555) | (141,555) | |||||||
Stock-based compensation expense | 26,992 | 26,992 | 26,992 | |||||||
Ending balance (in shares) at Sep. 30, 2020 | 154,606 | |||||||||
Ending balance at Sep. 30, 2020 | 2,762,345 | 2,747,184 | 2,072,715 | 753,915 | (79,446) | 15,161 | ||||
Beginning balance (in shares) at Jun. 30, 2021 | 152,776 | |||||||||
Beginning balance at Jun. 30, 2021 | 3,375,642 | 3,377,554 | 2,175,988 | 1,277,123 | (75,557) | (1,912) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income attributable to KLA | 1,068,417 | 1,068,417 | 1,068,417 | |||||||
Net loss attributable to non-controlling interest | 68 | 68 | ||||||||
Other comprehensive income | (2,487) | (2,487) | (2,487) | |||||||
Net issuance under employee stock plans (in shares) | 160 | |||||||||
Net issuance under employee stock plans | (46,532) | (46,532) | (46,532) | |||||||
Repurchase of common stock (in shares) | (1,190) | |||||||||
Repurchase of common stock | (399,677) | (399,677) | (16,966) | (382,711) | ||||||
Cash dividends and dividend equivalents declared | (161,561) | (161,561) | (161,561) | |||||||
Stock-based compensation expense | 25,216 | 25,216 | 25,216 | |||||||
Ending balance (in shares) at Sep. 30, 2021 | 151,746 | |||||||||
Ending balance at Sep. 30, 2021 | $ 3,859,086 | $ 3,860,930 | $ 2,137,706 | $ 1,801,268 | $ (78,044) | $ (1,844) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | Aug. 05, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 1.05 | $ 1.05 | $ 0.90 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,068,485 | $ 420,142 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 84,824 | 80,066 |
Unrealized foreign exchange (gain) loss and other | 15,639 | (12,907) |
Asset impairment charges | 5,962 | 865 |
Stock-based compensation expense | 25,216 | 26,992 |
Deferred income taxes | (427,970) | (14,967) |
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions: | ||
Accounts receivable | (180,354) | 73,000 |
Inventories | (138,189) | (85,991) |
Other assets | 4,673 | 20,070 |
Accounts payable | 41,868 | (9,822) |
Deferred system revenue | 33,469 | (82,633) |
Deferred service revenue | 4,912 | (3,646) |
Other liabilities | 325,262 | 101,002 |
Net cash provided by operating activities | 863,797 | 512,171 |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 0 | 1,114 |
Business acquisitions, net of cash acquired | (37,986) | 0 |
Capital expenditures | (68,955) | (55,925) |
Purchases of available-for-sale securities | (264,000) | (231,821) |
Proceeds from sale of available-for-sale securities | 14,954 | 53,249 |
Proceeds from maturity of available-for-sale securities | 178,414 | 95,835 |
Purchases of trading securities | (22,896) | (18,630) |
Proceeds from sale of trading securities | 25,163 | 21,244 |
Proceeds from other investments | 0 | 614 |
Net cash used in investing activities | (175,306) | (134,320) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 300,000 | 0 |
Repayment of debt | (300,000) | (50,000) |
Common stock repurchases | (399,677) | (187,897) |
Payment of dividends to stockholders | (162,821) | (141,164) |
Tax withholding payments related to vested and released restricted stock units | (46,532) | (25,145) |
Net cash used in financing activities | (609,030) | (404,206) |
Effect of exchange rate changes on cash and cash equivalents | (4,507) | 7,766 |
Net increase (decrease) in cash and cash equivalents | 74,954 | (18,589) |
Cash and cash equivalents at beginning of period | 1,434,610 | 1,234,409 |
Cash and cash equivalents at end of period | 1,509,564 | 1,215,820 |
Supplemental cash flow disclosures: | ||
Income taxes paid | 57,532 | 54,185 |
Interest paid | 39,717 | 40,071 |
Non-cash activities: | ||
Contingent consideration (receivable) payable - financing activities | 12,810 | (2,987) |
Dividends payable - financing activities | 1,783 | 1,660 |
Unsettled common stock repurchase - financing activities | 5,999 | 6,000 |
Accrued purchases of land, property and equipment - investing activities | $ 22,962 | $ 23,388 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 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 (“SEC”). 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 months ended September 30, 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 The Company continues to monitor new accounting pronouncements issued by the Financial Accounting Board (“FASB”) and does not believe any accounting pronouncements issued through the date of this report will have an impact on the Company’s 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 Standard 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. |
REVENUE
REVENUE | 3 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 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 of As of (Dollar amounts in thousands) September 30, 2021 June 30, 2021 $ Change % Change Accounts receivable, net $ 1,463,974 $ 1,305,479 $ 158,495 12 % Contract assets $ 94,877 $ 91,052 $ 3,825 4 % Contract liabilities $ 701,411 $ 667,703 $ 33,708 5 % 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 three months ended September 30, 2021 was mainly due to $37.8 million of contract assets reclassified to net accounts receivable as our right to consideration for these contract assets became unconditional, partially offset by $41.6 million of revenue recognized for which the payment is subject to conditions other than passage of time. Contract assets are included in Other current assets on our Condensed Consolidated Balance Sheets. The change in contract liabilities during the three months ended September 30, 2021 was mainly due to the recognition in revenue of $303.0 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 three months ended September 30, 2020 was mainly due to the recognition in revenue of $314.8 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 September 30, 2021, we had $6.25 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 5% to 15% of these performance obligations as revenue beyond the next 12 months, which percentages could increase as a result of capacity and supply chain constraints, customer pushouts or cancellations, or other factors resulting in product shipment or installation delays. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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. 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. 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. 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. 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 Assets Significant Other Observable Inputs Little or No Market Activity Inputs As of September 30, 2021 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 690,579 $ 690,579 $ — $ — Marketable securities: Corporate debt securities 467,529 — 467,529 — Municipal securities 70,892 — 70,892 — Sovereign securities 5,049 — 5,049 — U.S. Government agency securities 126,147 126,147 — — U.S. Treasury securities 247,764 241,815 5,949 — Equity securities (1) 18,653 18,653 — — Total cash equivalents and marketable securities (2) 1,626,613 1,077,194 549,419 — Other current assets: Derivative assets 10,156 — 10,156 — Other non-current assets: Executive Deferred Savings Plan 262,042 199,933 62,109 — Total financial assets (2) $ 1,898,811 $ 1,277,127 $ 621,684 $ — Liabilities Derivative liabilities $ (4,348) $ — $ (4,348) $ — Deferred payments (4,625) — — (4,625) Contingent consideration payable (21,324) — — (21,324) Total financial liabilities $ (30,297) $ — $ (4,348) $ (25,949) ________________ (1) Transfer from Level 2 to Level 1 as the security-specific restriction expired during the three months ended September 30, 2021. (2) Excludes cash of $747.6 million held in operating accounts and time deposits of $250.6 million (of which $71.3 million were cash equivalents) as of September 30, 2021. 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 Assets Significant Other Observable Inputs Little or No Market Activity Inputs As of June 30, 2021 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 691,375 $ 691,375 $ — $ — Marketable securities: Corporate debt securities 468,746 — 468,746 — Municipal securities 70,228 — 70,228 — Sovereign securities 3,052 — 3,052 — U.S. Government agency securities 145,921 145,921 — — U.S. Treasury securities 233,064 205,055 28,009 — Equity securities 29,930 — 29,930 — Total cash equivalents and marketable securities (1) 1,642,316 1,042,351 599,965 — Other current assets: Derivative assets 8,252 — 8,252 — Other non-current assets: Executive Deferred Savings Plan 266,199 200,925 65,274 — Total financial assets (1) $ 1,916,767 $ 1,243,276 $ 673,491 $ — Liabilities Derivative liabilities $ (2,807) $ — $ (2,807) $ — Deferred payments (4,550) — — (4,550) Contingent consideration payable (8,514) — — (8,514) Total financial liabilities $ (15,871) $ — $ (2,807) $ (13,064) ________________ (1) Excludes cash of $641.6 million held in operating accounts and time deposits of $210.6 million (of which $101.7 million were cash equivalents) as of June 30, 2021. Besides the transfer listed above, there were no other transfers between Level 1, Level 2 and Level 3 fair value measurements during the three months ended September 30, 2021. See Note 8 “Debt” to our Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes. |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL STATEMENT COMPONENTS | FINANCIAL STATEMENT COMPONENTS Condensed Consolidated Balance Sheets As of As of (In thousands) September 30, 2021 June 30, 2021 Accounts receivable, net: Accounts receivable, gross $ 1,481,868 $ 1,323,515 Allowance for credit losses (17,894) (18,036) $ 1,463,974 $ 1,305,479 Inventories: Customer service parts $ 348,913 $ 349,743 Raw materials 696,314 595,151 Work-in-process 426,855 453,432 Finished goods 243,257 177,054 $ 1,715,339 $ 1,575,380 Other current assets: Prepaid expenses $ 112,592 $ 76,649 Contract assets 94,877 91,052 Deferred costs of revenues 69,865 59,953 Prepaid income and other taxes 23,893 68,847 Other current assets 39,319 24,366 $ 340,546 $ 320,867 Land, property and equipment, net: Land $ 67,862 $ 67,862 Buildings and leasehold improvements 463,865 458,605 Machinery and equipment 745,877 743,710 Office furniture and fixtures 32,029 32,856 Construction-in-process 215,038 182,320 1,524,671 1,485,353 Less: accumulated depreciation (826,124) (822,326) $ 698,547 $ 663,027 Other non-current assets: Executive Deferred Savings Plan (1) $ 262,041 $ 266,199 Operating lease right of use assets 99,616 102,883 Other non-current assets 77,056 75,823 $ 438,713 $ 444,905 Other current liabilities: Customer credits and advances $ 421,928 $ 250,784 Compensation and benefits 421,677 305,445 Executive Deferred Savings Plan 264,740 268,028 Other accrued expenses 177,045 180,982 Income taxes payable 162,494 87,320 Interest payable 34,766 36,135 Operating lease liabilities 32,946 32,322 $ 1,515,596 $ 1,161,016 Other non-current liabilities: Income taxes payable $ 314,623 $ 333,866 Pension liabilities 86,817 87,602 Operating lease liabilities 65,940 70,739 Other non-current liabilities 153,201 139,083 $ 620,581 $ 631,290 ________________ (1) We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense (benefit) associated with changes in the EDSP liability included in selling, general and administrative expense was $(1.0) million and $13.2 million during the three months ended September 30, 2021 and 2020, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in selling, general and administrative expense was $(1.1) million and $13.3 million during the three months ended September 30, 2021 and 2020, respectively. For additional details, refer to 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. Accumulated Other Comprehensive Income (Loss) The components of AOCI as of the dates indicated below were as follows: (In thousands) Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Gains (Losses) on Derivatives Unrealized Gains (Losses) on Defined Benefit Plans Total Balance as of September 30, 2021 $ (35,001) $ 345 $ (20,519) $ (22,869) $ (78,044) Balance as of June 30, 2021 $ (32,563) $ 595 $ (20,092) $ (23,497) $ (75,557) The effects on net income (loss) of amounts reclassified from AOCI to the Condensed Consolidated Statements of Operations for the indicated period were as follows (in thousands): AOCI Components Location in the Condensed Consolidated Statements of Operations Three Months Ended September 30, 2021 2020 Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts Revenues $ 1,729 $ (217) Costs of revenues and operating expenses (232) 550 Interest expense (279) (279) Net gains (losses) reclassified from AOCI $ 1,218 $ 54 Unrealized gains (losses) on available-for-sale securities Other expense (income), net $ 1 $ 101 The amounts reclassified out of AOCI related to our defined benefit pension plans that were recognized as a component of net periodic cost for the three months ended September 30, 2021 and 2020 were $0.4 million and $0.3 million, respectively. For additional details, refer to Note 13 “Employee Benefit Plans” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES The amortized cost and fair value of marketable securities as of the dates indicated below were as follows: As of September 30, 2021 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 467,126 $ 516 $ (113) $ 467,529 Money market funds and other 690,579 — — 690,579 Municipal securities 70,830 83 (21) 70,892 Sovereign securities 5,044 7 (2) 5,049 U.S. Government agency securities 126,088 103 (44) 126,147 U.S. Treasury securities 247,853 30 (119) 247,764 Equity securities (1) 3,211 15,442 — 18,653 Subtotal 1,610,731 16,181 (299) 1,626,613 Add: Time deposits (2) 250,553 — — 250,553 Less: Cash equivalents 761,917 — — 761,917 Marketable securities $ 1,099,367 $ 16,181 $ (299) $ 1,115,249 As of June 30, 2021 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 468,192 $ 689 $ (135) $ 468,746 Money market funds and other 691,375 — — 691,375 Municipal securities 70,155 106 (33) 70,228 Sovereign securities 3,045 7 — 3,052 U.S. Government agency securities 145,810 160 (49) 145,921 U.S. Treasury securities 233,052 129 (117) 233,064 Equity securities (1) 3,211 26,719 — 29,930 Subtotal 1,614,840 27,810 (334) 1,642,316 Add: Time deposits (2) 210,636 — — 210,636 Less: Cash equivalents 793,040 — — 793,040 Marketable securities $ 1,032,436 $ 27,810 $ (334) $ 1,059,912 ________________ (1) Unrealized gains on equity securities included in our portfolio consist of the initial fair value adjustment recorded upon a security becoming marketable. (2) Time deposits excluded from fair value measurements. Our investment portfolio consists of both corporate and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. Most of our unrealized losses are due to changes in market interest rates and bond yields. We believe that we have the ability to realize the full value of all of these investments upon maturity. As of September 30, 2021, we had 197 investments in an unrealized loss position. The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the date indicated below, none of which were in a continuous loss position for 12 months or more: As of September 30, 2021 (In thousands) Fair Value Gross Corporate debt securities $ 142,915 $ (113) Sovereign securities 2,002 (2) Municipal securities 16,727 (21) U.S. Government agency securities 37,410 (44) U.S. Treasury securities 172,839 (119) Total $ 371,893 $ (299) As of June 30, 2021 (In thousands) Fair Value Gross Corporate debt securities $ 161,012 $ (135) Municipal securities 21,605 (33) U.S. Government agency securities 38,904 (49) U.S. Treasury securities 117,761 (117) Total $ 339,282 $ (334) The contractual maturities of securities classified as available-for-sale, regardless of their classification on our Condensed Consolidated Balance Sheets, as of the date indicated below were as follows: As of September 30, 2021 (In thousands) Amortized Cost Fair Value Due within one year $ 547,941 $ 563,772 Due after one year through three years 551,426 551,477 Total $ 1,099,367 $ 1,115,249 Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains and losses on available-for-sale securities for the three months ended September 30, 2021 and 2020 were immaterial. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On September 17, 2021, we signed a purchase agreement to acquire the outstanding shares of a privately held company for $460.0 million plus closing cash, less closing debt and certain other expenses. The purpose of the proposed acquisition is to expand our products and service offerings. On July 1, 2021, we acquired the outstanding shares of Anchor Semiconductor Inc., a privately-held company, primarily to expand our products and services offerings, for a total purchase consideration of $80.3 million, including the fair value of the promise to pay an additional consideration up to $35.0 million contingent on the achievement of certain revenue milestones. As of September 30, 2021, the estimated fair value of the additional consideration was $12.8 million, which was classified as a non-current liability on the Condensed Consolidated Balance Sheets. The total purchase consideration was allocated as follows: $31.7 million to identifiable intangible assets, $26.4 million to net tangible assets, $8.0 million to deferred tax liabilities, and $30.2 million to goodwill. The total purchase consideration is preliminary, and as additional information becomes available, we may further revise it during the remainder of the measurement period, which will not exceed 12 months from the closing of the acquisition. The $30.2 million of goodwill was assigned to the Wafer Inspection and Patterning reporting unit, and the amount recognized was not deductible for tax purposes. We have included the financial results of the acquisition completed during the first quarter of the fiscal year 2022 in our Condensed Consolidated Financial Statements from the date of acquisition. These results were not material to our Condensed Consolidated Financial Statements. As of September 30, 2021, we have $21.3 million of contingent consideration recorded for this acquisition and other acquisitions from the fiscal year ended June 30, 2019, of which $1.5 million is classified as a current liability and $19.8 million as a non-current liability on the Condensed Consolidated Balance Sheet. For additional details, please refer to Note 6 “Business Combinations” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021. |
GOODWILL AND PURCHASED INTANGIB
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND PURCHASED INTANGIBLE ASSETS | GOODWILL AND PURCHASED INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in the current and prior quarters ’ business combinations. We have four reportable segments and six operating segments. The operating segments are determined to be the same as reporting units. For additional details, refer to Note 18 “Segment Reporting and Geographic Information” to our Condensed Consolidated Financial Statements. The following table presents changes in goodwill carrying value during the three months ended September 30, 2021 (1) : (In thousands) Wafer Inspection and Patterning Global Service and Support ( “ GSS ” ) Specialty Semiconductor Process PCB and Display Component Inspection Total Balance as of June 30, 2021 $ 416,860 $ 25,908 $ 681,858 $ 872,971 $ 13,575 $ 2,011,172 Acquired goodwill 30,164 — — — — 30,164 Foreign currency adjustments 2 — — — — 2 Balance as of September 30, 2021 $ 447,026 $ 25,908 $ 681,858 $ 872,971 $ 13,575 $ 2,041,338 _________________ (1) No goodwill was assigned to the Other reporting unit and, accordingly, it was excluded from the table above. Goodwill is not subject to amortization but is tested for impairment annually during the third fiscal quarter, as well as whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As of September 30, 2021, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the annual assessment performed in the third quarter of the fiscal year ended June 30, 2021. There was no goodwill impairment as a result of that assessment. For additional details, refer to Note 7 “Goodwill and Purchased Intangible Assets” to our Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021. Purchased Intangible Assets The components of purchased intangible assets as of the dates indicated below were as follows: (In thousands) As of September 30, 2021 As of June 30, 2021 Category Range of Useful Lives (in years) Gross Accumulated Net Gross Accumulated Net Existing technology 4-8 $ 1,400,191 $ 540,125 $ 860,066 $ 1,382,612 $ 499,219 $ 883,393 Customer relationships 4-9 313,317 139,919 173,398 305,817 131,386 174,431 Trade name / Trademark 4-7 117,983 57,100 60,883 117,383 53,493 63,890 Backlog and other <1-9 51,836 50,242 1,594 50,403 49,962 441 Intangible assets subject to amortization 1,883,327 787,386 1,095,941 1,856,215 734,060 1,122,155 In-process research and development 67,656 6,062 61,594 63,256 100 63,156 Total $ 1,950,983 $ 793,448 $ 1,157,535 $ 1,919,471 $ 734,160 $ 1,185,311 Purchased intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. The impairment indicator primarily includes the declines in our operating cash flows from the use of these assets. If the impairment indicators are present, we are required to perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to these long-lived assets to their carrying value. As of September 30, 2021, there were no impairment indicators for purchased intangible assets. Amortization expense for purchased intangible assets for the periods indicated below was as follows: Three Months Ended September 30, (In thousands) 2021 2020 Amortization expense - Costs of revenues $ 41,124 $ 37,040 Amortization expense - Selling, general and administrative 12,389 13,429 Amortization expense - Research and development 31 31 Total $ 53,544 $ 50,500 Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2021, the remaining estimated annual amortization expense is expected to be as follows: Fiscal year ending June 30: Amortization (In thousands) 2022 (remaining nine months) $ 160,633 2023 212,609 2024 209,615 2025 197,396 2026 182,071 2027 and thereafter 133,617 Total $ 1,095,941 |
DEBT
DEBT | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes our debt as of September 30, 2021 and June 30, 2021: As of September 30, 2021 As of June 30, 2021 Amount Effective Amount Effective Fixed-rate 4.650% Senior Notes due on November 1, 2024 $ 1,250,000 4.682 % $ 1,250,000 4.682 % Fixed-rate 5.650% Senior Notes due on November 1, 2034 250,000 5.670 % 250,000 5.670 % Fixed-rate 4.100% Senior Notes due on March 15, 2029 800,000 4.159 % 800,000 4.159 % Fixed-rate 5.000% Senior Notes due on March 15, 2049 400,000 5.047 % 400,000 5.047 % Fixed-rate 3.300% Senior Notes due on March 1, 2050 750,000 3.302 % 750,000 3.302 % Fixed-rate 3.590% Note Payable due on February 20, 2022 20,000 2.300 % 20,000 2.300 % Total 3,470,000 3,470,000 Unamortized discount/premium, net (7,023) (7,168) Unamortized debt issuance costs (19,541) (20,065) Total $ 3,443,436 $ 3,442,767 Reported as: Short-term debt $ 20,000 $ 20,000 Long-term debt 3,423,436 3,422,767 Total $ 3,443,436 $ 3,442,767 As of September 30, 2021, future minimum principal payments for our debt are as follows: $20.0 million in fiscal year 2022, $1.25 billion in fiscal year 2025 and $2.20 billion after fiscal year 2026. Senior Notes and Debt Redemption: In February 2020, we issued $750.0 million aggregate principal amount of senior, unsecured long-term notes (the “2020 Senior Notes”). In March 2019 and November 2014, we issued $1.20 billion (the “2019 Senior Notes”) and $2.50 billion (the “2014 Senior Notes,” and, together with the 2019 Senior Notes and the 2020 Senior Notes, the “Senior Notes”), respectively, aggregate principal amount of senior, unsecured long-term notes. In each of the second quarters of fiscal 2018 and 2020, we repaid $250.0 million of the 2014 Senior Notes and in the third quarter of fiscal 2020 we repaid another $500.0 million of the 2014 Senior Notes using the proceeds from the issuance of the 2020 Senior Notes, bringing the outstanding aggregate principal amount of the 2014 Senior Notes to $1.50 billion as of September 30, 2021. The interest rates for our Senior Notes are not subject to adjustment. Interest is payable as follows: semi-annually on March 1 and September 1 of each year for the 2020 Senior Notes; semi-annually on March 15 and September 15 of each year for the 2019 Senior Notes; and semi-annually on May 1 and November 1 of each year for the 2014 Senior Notes. The indenture for the Senior Notes (the “Indenture”) includes covenants that limit our ability to grant liens on our facilities and enter into sale and leaseback transactions, subject to certain allowances under which certain sale and leaseback transactions are not restricted. In certain circumstances involving a change of control followed by a downgrade of the rating of a series of Senior Notes by at least two of Moody’s, S&P and Fitch Inc., unless we have exercised our rights to redeem the Senior Notes of such series, we will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s Senior Notes of that series pursuant to the offer described below (the “Change of Control Offer”). In the Change of Control Offer, we will be required to offer payment in cash equal to 101% of the aggregate principal amount of Senior Notes repurchased plus accrued and unpaid interest, if any, on the Senior Notes repurchased, up to, but not including, the date of repurchase. Based on the trading prices of the Senior Notes on the applicable dates, the fair value of the Senior Notes as of September 30, 2021 and June 30, 2021 was $3.95 billion and $3.98 billion, respectively. While the Senior Notes are recorded at cost, the fair value of the long-term debt was determined based on quoted prices in markets that are not active; accordingly, the long-term debt is categorized as Level 2 for purposes of the fair value measurement hierarchy. As of September 30, 2021, we were in compliance with all of our covenants under the Indenture associated with the Senior Notes. Revolving Credit Facility: We have in place a Credit Agreement (the “Credit Agreement”) providing for a $1.00 billion unsecured Revolving Credit Facility (the "Revolving Credit Facility") with a maturity date of November 30, 2023. During the first quarter of the fiscal year ending June 30, 2022, we borrowed $300.0 million from the Revolving Credit Facility, which was paid in full in the same quarter. As of September 30, 2021, we had no outstanding borrowings under the Revolving Credit Facility. We may borrow, repay and reborrow funds under the Revolving Credit Facility until the maturity date, at which time such Revolving Credit Facility will terminate, and all outstanding loans under such facility, together with all accrued and unpaid interest, must be repaid. We may prepay outstanding borrowings under the Revolving Credit Facility at any time without a prepayment penalty. Borrowings under the Revolving Credit Facility will bear interest, at our option, at either: (i) the Alternative Base Rate (“ABR”) plus a spread, which ranges from 0 bps to 75 bps, or (ii) the London Interbank Offered Rate (“LIBOR”) plus a spread, which ranges from 100 bps to 175 bps. The spreads under ABR and LIBOR are subject to adjustment in conjunction with credit rating downgrades or upgrades. We are also obligated to pay an annual commitment fee on the daily undrawn balance of the Revolving Credit Facility, which ranges from 10 bps to 25 bps, subject to an adjustment in conjunction with changes to our credit rating. As of September 30, 2021, we elected to pay interest on the borrowed amount under the Revolving Credit Facility at LIBOR plus a spread of 100 bps, and we pay an annual commitment fee of 10 bps on the daily undrawn balance of the Revolving Credit Facility. The Revolving Credit Facility requires us to maintain an interest expense coverage ratio as described in the Credit Agreement, on a quarterly basis, covering the trailing four consecutive fiscal quarters of no less than 3.50 to 1.00. In addition, we are required to maintain the maximum leverage ratio as described in the Credit Agreement, on a quarterly basis of 3.00 to 1.00, covering the trailing four consecutive fiscal quarters for each fiscal quarter, which can be increased to 4.00 to 1.00 for a period of time in connection with a material acquisition or a series of material acquisitions. As of September 30, 2021, our maximum allowed leverage ratio was 3.00 to 1.00. We were in compliance with all covenants under the Credit Agreement as of September 30, 2021. Notes Payable: In December 2020 we sold promissory notes to a financial institution, borrowing an aggregate principal amount of $40.0 million ("Notes Payable"). Of the aggregate amount borrowed, $20.0 million matured and was paid on February 20, 2021 and the balance of $20.0 million matures on February 20, 2022. The premium of $0.3 million from the sale of the Notes Payable is being amortized over the life of the debt. The net proceeds from the sale of the Notes Payable were used for general corporate purposes. |
LEASES
LEASES | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | 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 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 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 $9.1 million and $9.6 million for the three months ended September 30, 2021 and 2020, 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, 2021 and 2020. As of September 30, 2021 and June 30, 2021, the weighted-average remaining lease term was 4.4 years and 4.6 years, respectively, and the weighted-average discount rate for operating leases was 1.60% and 1.64%, respectively. Supplemental cash flow information related to leases was as follows: Three Months Ended September 30, In thousands 2021 2020 Operating cash outflows from operating leases $ 9,485 $ 9,370 Right of use assets obtained in exchange for new operating lease liabilities $ 5,955 $ 6,844 Maturities of lease liabilities as of September 30, 2021 were as follows: Fiscal Year Ending June 30: (In thousands) 2022 (remaining nine months) $ 26,328 2023 26,059 2024 16,672 2025 12,161 2026 9,156 2027 and thereafter 12,644 Total lease payments 103,020 Less imputed interest (4,134) Total $ 98,886 As of September 30, 2021, we did not have any material leases that had not yet commenced. |
EQUITY, LONG-TERM INCENTIVE COM
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST | EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST Equity Incentive Program As of September 30, 2021, 9.9 million shares remained available for issuance under our 2004 Equity Incentive Plan (the “2004 Plan”). For details of the 2004 Plan refer to Note 10 “Equity, Long-Term Incentive Compensation Plans and Non-Controlling Interest” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021. Assumed Equity Plans As part of the acquisition of Orbotech Ltd. (“Orbotech”) in February 2019, we assumed outstanding equity incentive awards under the following Orbotech equity incentive plans: (i) Equity Remuneration Plan for Key Employees of Orbotech and its Affiliates and Subsidiaries (as Amended and Restated in 2005), (ii) 2010 Equity-Based Incentive Plan, and (iii) 2015 Equity-Based Incentive Plan (the “Assumed Equity Plans”). As of September 30, 2021, there were 74,535 shares of our common stock underlying the outstanding Assumed restricted stock units (“RSUs”) under the Assumed Equity Plans. For details on the Assumed Equity Plans refer to Note 10 “Equity, Long-Term Incentive Compensation Plans and Non-Controlling Interest” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021. Equity Incentive Plans - General Information The following table summarizes the combined activity under our equity incentive plans: (In thousands) Available For Grant (1) (2) Balance as of June 30, 2021 10,253 RSUs granted (3) (436) RSUs granted adjustment (4) 39 RSUs canceled 28 Balance as of September 30, 2021 9,884 __________________ (1) The number of RSUs reflects the application of the award multiplier of 2.0x to calculate the impact of the award on the shares reserved under the 2004 Plan. (2) No additional stock options, RSUs or other awards will be granted under the Assumed Equity Plans. (3) Includes RSUs granted to senior management during the three months ended September 30, 2021 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such RSUs that are deemed to have been earned) (“performance-based RSUs”). This line item includes all such performance-based RSUs granted during the three months ended September 30, 2021 reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied (0.2 million shares for the three months ended September 30, 2021 reflects the application of the multiplier described above). (4) Represents the portion of RSUs granted with performance-based vesting criteria and reported at the actual number of shares issued upon achievement of the performance vesting criteria during the three months ended September 30, 2021. The fair value of stock-based awards is measured at the grant date and is recognized as an expense over the employee’s requisite service period. For RSUs granted without “dividend equivalent” rights, fair value is calculated using the closing price of our common stock on the grant date, adjusted to exclude the present value of dividends which are not accrued on those RSUs. The fair value for RSUs granted with “dividend equivalent” rights is determined using the closing price of our common stock on the grant date. Compensation expense for RSUs with performance metrics is calculated based upon expected achievement of the metrics specified in the grant, or when a grant contains a market condition, the grand date fair value using a Monte Carlo simulation. The following table shows stock-based compensation expense for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Stock-based compensation expense by: Costs of revenues $ 3,838 $ 3,667 Research and development 4,694 5,471 Selling, general and administrative 16,684 17,854 Total stock-based compensation expense $ 25,216 $ 26,992 Stock-based compensation capitalized as inventory as of September 30, 2021 and June 30, 2021 was $7.1 million and $8.0 million, respectively. Restricted Stock Units The following table shows the activity and weighted-average grant date fair values for RSUs during the three months ended September 30, 2021: Shares (1) (In thousands) Weighted-Average Outstanding RSUs as of June 30, 2021 (2) 1,710 $ 133.76 Granted (3) 218 $ 353.71 Granted adjustments (19) $ 118.47 Vested and released (160) $ 125.29 Withheld for taxes (133) $ 125.29 Forfeited (16) $ 105.45 Outstanding RSUs as of September 30, 2021 (2) 1,600 $ 165.75 __________________ (1) Share numbers reflect actual shares subject to awarded RSUs. (2) Includes performance-based RSUs. (3) This line item includes performance-based RSUs granted during the three months ended September 30, 2021 reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied (0.1 million shares for the three months ended September 30, 2021). The RSUs granted by us generally vest as follows: with respect to awards with only service-based vesting criteria, over periods ranging from two The following table shows the weighted-average grant date fair value per unit for the RSUs granted, vested, and tax benefits realized by us in connection with vested and released RSUs for the indicated periods : Three Months Ended September 30, (In thousands, except for weighted-average grant date fair value) 2021 2020 Weighted-average grant date fair value per unit $ 353.71 $ 201.95 Grant date fair value of vested RSUs $ 36,740 $ 27,302 Tax benefits realized by us in connection with vested and released RSUs $ 9,008 $ 6,737 As of September 30, 2021, the unrecognized stock-based compensation expense balance related to RSUs was $194.2 million, excluding the impact of estimated forfeitures, and will be recognized over a weighted-average remaining contractual term and an estimated weighted-average amortization period of 1.5 years. The intrinsic value of outstanding RSUs as of September 30, 2021 was $535.1 million. Cash-Based Long-Term Incentive Compensation We have adopted a cash-based long-term incentive (“Cash LTI”) program (“Cash LTI Plan”) for many of our employees as part of our employee compensation program. Executives and non-employee members of the Board of Directors do not participate in the Cash LTI Plan. During the three months ended September 30, 2021 and 2020, we approved Cash LTI awards of $6.6 million and $3.5 million, respectively. Cash LTI awards issued to employees under the Cash LTI Plan will vest in three or four equal installments, with one-third or one-fourth of the aggregate amount of the Cash LTI award vesting on each anniversary of the grant date over a three Employee Stock Purchase Plan Our Employee Stock Purchase Plan (“ESPP”) provides that eligible employees may contribute up to 15% of their eligible earnings toward the semi-annual purchase of our common stock. The ESPP is qualified under Section 423 of the Internal Revenue Code. The employee’s purchase price is derived from a formula based on the closing price of the common stock on the first day of the offering period versus the closing price on the date of purchase (or, if not a trading day, on the immediately preceding trading day). The offering period (or length of the look-back period) under the ESPP has a duration of six months, and the purchase price with respect to each offering period beginning on or after such date is, until otherwise amended, equal to 85% of the lesser of (i) the fair market value of our common stock at the commencement of the applicable six-month offering period or (ii) the fair market value of our common stock on the purchase date. We estimate the fair value of purchase rights under the ESPP using a Black-Scholes model. The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes model and the straight-line attribution approach with the following weighted-average assumptions: Three Months Ended September 30, 2021 2020 Stock purchase plan: Expected stock price volatility 34.9 % 51.9 % Risk-free interest rate 0.1 % 0.7 % Dividend yield 1.4 % 1.9 % Expected life (in years) 0.5 0.5 The following table shows total cash received from employees for the issuance of shares under the ESPP, the number of shares purchased by employees through the ESPP, the tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods: (In thousands, except for weighted-average fair value per share) Three Months Ended September 30, 2021 2020 Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP $ 967 $ 892 Weighted-average fair value per share based on Black-Scholes model $ 71.82 $ 52.23 The ESPP shares are replenished annually on the first day of each fiscal year by virtue of an evergreen provision. The provision allows for share replenishment equal to the lesser of 2.0 million shares or the number of shares which we estimate will be required to be issued under the ESPP during the forthcoming fiscal year. As of September 30, 2021, a total of 2.2 million shares were reserved and available for issuance under the ESPP. Quarterly Cash Dividends On September 1, 2021, we paid a quarterly cash dividend of $1.05 per share to stockholders of record as of the close of business on August 16, 2021. The total amount of regular quarterly cash dividends and dividend equivalents paid during the three months ended September 30, 2021 and 2020 was $162.8 million and $141.2 million, respectively. The amount of accrued dividend equivalents payable for regular quarterly cash dividends on unvested RSUs with dividend equivalent rights as of September 30, 2021 and June 30, 2021 was $9.1 million and $10.3 million, respectively. These amounts will be paid upon vesting of the underlying RSUs. Non-Controlling Interest We have consolidated the results of Orbograph Ltd. (“Orbograph”), in which we own approximately 94% of the outstanding equity interest. Orbograph is engaged in the development and marketing of character recognition solutions to banks, financial and other payment processing institutions and healthcare providers. During the fourth quarter of fiscal 2020, we entered into an Asset Purchase Agreement to sell certain core assets of Orbotech LT Solar, LLC (“OLTS”), which was engaged in the research, development and marketing of products for the deposition of thin film coating of various materials on crystalline silicon photovoltaic wafers for solar energy panels through plasma-enhanced chemical vapor deposition. The sale was completed in the first quarter of fiscal 2021 and the proceeds were |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM Our Board of Directors has authorized a program that permits us to repurchase our common stock. As of June 30, 2021, there was an aggregate of approximately $93 million remaining available for repurchase under previous authorizations, and on July 29, 2021, the Board of Directors authorized an additional $2.00 billion. The intent of this program is to offset the dilution from our equity incentive plans, shares issued in connection with purchases under our ESPP, as well as to return excess cash to our stockholders. Subject to market conditions, applicable legal requirements and other factors, the repurchases were made in the open market in compliance with applicable securities laws, including the Securities Exchange Act of 1934 and the rules promulgated thereunder, such as Rule 10b-18 and, if pursuant to a written plan, Rule 10b5-1. This stock repurchase program has no expiration date and may be suspended at any time. As of September 30, 2021, an aggregate of $1.69 billion was available for repurchase under the stock repurchase program. Share repurchases for the indicated periods (based on the trade date of the applicable repurchase) were as follows: Three Months Ended September 30, (In thousands) 2021 2020 Number of shares of common stock repurchased 1,190 1,027 Total cost of repurchases $ 399,677 $ 193,897 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated by using the weighted-average number of common shares outstanding during the period, increased to include the number of additional shares of common stock that would have been outstanding if the shares of common stock underlying our outstanding dilutive restricted stock units had been issued. The dilutive effect of outstanding restricted stock units is reflected in diluted net income per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted net income per share attributable to KLA: (In thousands, except per share amounts) Three Months Ended September 30, 2021 2020 Numerator: Net income attributable to KLA $ 1,068,417 $ 420,567 Denominator: Weighted-average shares - basic, excluding unvested restricted stock units 152,330 155,281 Effect of dilutive restricted stock units and options 1,080 1,161 Weighted-average shares - diluted 153,410 156,442 Basic net income per share attributable to KLA $ 7.01 $ 2.71 Diluted net income per share attributable to KLA $ 6.96 $ 2.69 Anti-dilutive securities excluded from the computation of diluted net income per share 135 169 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table provides details of income taxes: Three Months Ended September 30, (Dollar amounts in thousands) 2021 2020 Income before income taxes $ 766,348 $ 483,806 Provision (benefit) for income taxes $ (302,137) $ 63,664 Effective tax rate (39.4) % 13.2 % Our effective tax rate is lower than the U.S. federal statutory rate during the three months ended September 30, 2021 primarily due to a non-recurring tax benefit resulting from the intra-entity transfers of certain intellectual property rights (“IP rights”). During the three months ended September 30, 2021, we completed intra-entity transfers of IP rights to one of our Singapore subsidiaries in order to better align t he ownership of these rights with how our business operates. The transfers did not result in taxable gains; however, our Singapore subsidiary recognized deferred tax assets for the book and tax basis difference of the eligible transferred IP rights. As a result of these transactions, we recorded deferred tax assets and related tax benefits of $395 million, based on the fair value of the eligible IP rights transferred in September 2021. The tax-deductible amortization related to the eligible transferred IP rights will be recognized over 15 years as allowed under Singapore tax law. In the normal course of business, we are subject to examination by tax authorities throughout the world. We are subject to U.S. federal income tax examinations for all years beginning from the fiscal year ended June 30, 2018 and are under United States income tax examination for the fiscal year ended June 30, 2018. We are subject to state income tax examinations for all years beginning from the fiscal year ended June 30, 2017. We are also subject to examinations in other major foreign jurisdictions, including Singapore and Israel, for all years beginning from the calendar year ended December 31, 2012. We are under audit in Germany related to Orbotech for the calendar years ended December 31, 2013 to December 31, 2015. It is possible that certain examinations may be concluded in the next 12 months. The timing and resolution of income tax examinations is uncertain. Given the uncertainty around the timing of the resolution of these ongoing examinations, we are unable to estimate the full range of possible adjustments to our unrecognized tax benefits within the next 12 months. In May 2017, Orbotech received an assessment from the Israel Tax Authority (“ITA”) with respect to its fiscal years 2012 through 2014 (the “Assessment” and the “Audit Period,” respectively), for an aggregate amount of tax, after offsetting all net operating losses (“NOL”) available through the end of 2014, of approximately NIS 229 million (equivalent to approximately $66 million which includes related interest and linkage differentials to the Israeli consumer price index as of the date of the issuance of the Tax Decrees, as defined below). On August 31, 2018, Orbotech filed an objection in respect of the Assessment (the “Objection”). The ITA completed the second stage of the audit, in which the claims Orbotech raised in the Objection were examined by different personnel at the ITA. In addition, the ITA examined additional items during this second stage of the audit. As Orbotech and the ITA did not reach an agreement during the second stage, the ITA issued Tax Decrees to Orbotech on August 28, 2019 (“Tax Decrees”) for an aggregate amount of tax, after offsetting all NOLs available through the end of 2014, of approximately NIS 257 million (equivalent to approximately $73 million which includes related interest and linkage differentials to the Israeli consumer price index as of the date of the issuance of the Tax Decrees). These Tax Decrees replaced the Assessment. We believe that our recorded unrecognized tax benefits are sufficient to cover the resolution of these Tax Decrees. Orbotech filed a notice of appeal with respect to the above Tax Decrees with the District Court of Tel Aviv on September 26, 2019. On February 27, 2020 the ITA filed its arguments in support of the Tax Decrees. Orbotech filed the grounds of appeal with respect to the above Tax Decrees on July 30, 2020. We are currently in the pre-trial hearing stage of the process. The ITA and Orbotech are continuing discussions in an effort to resolve this matter in a mutually agreeable manner. In connection with the above, there is an ongoing criminal investigation in Israel against Orbotech, certain of its employees and its tax consultant. On April 11, 2018, Orbotech received a “suspect notification letter” (dated March 28, 2018) from the Tel Aviv District Attorney’s Office (Fiscal and Financial). In the letter, it was noted that the investigation file was transferred from the Assessment Investigation Officer to the District Attorney’s Office. The letter further states that the District Attorney’s Office has not yet made a decision regarding submission of an indictment against Orbotech; and that if after studying the case, a decision is made to consider prosecuting Orbotech, Orbotech will receive an additional letter and, within 30 days, Orbotech may present its arguments to the District Attorney’s Office as to why it should not be indicted. On October 27, 2019, we received a request for additional information from the District Attorney ’ s Office. We will continue to monitor the progress of the District Attorney’s Office investigation; however, we cannot anticipate when the review of the case will be completed and what will be the results thereof. We intend to cooperate with the District Attorney’s Office to enable them to conclude their investigation. In December 2020, Orbotech received an assessment from the ITA with respect to its fiscal years 2015 through 2018 (the “Second Assessment”) for an aggregate amount of tax, after offsetting all NOLs available through the end of 2018, of approximately NIS 227 million (equivalent to approximately $68 million which includes related interest and linkage differentials to the Israeli consumer price index as of the date of the issuance of the Second Assessment). We filed an objection to the Second Assessment with the ITA in March 2021. The objection moved the 2015-2018 audit to the second stage, in which the ITA will review the objections. We believe that our recorded unrecognized tax benefits are sufficient to cover the resolution of the Second Assessment. |
LITIGATION AND OTHER LEGAL MATT
LITIGATION AND OTHER LEGAL MATTERS | 3 Months Ended |
Sep. 30, 2021 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
LITIGATION AND OTHER LEGAL MATTERS | LITIGATION AND OTHER LEGAL MATTERSWe are named from time to time as a party to lawsuits and other types of legal proceedings and claims in the normal course of our business. Actions filed against us include commercial, intellectual property, customer, and labor and employment related claims, including complaints of alleged wrongful termination and potential class action lawsuits regarding alleged violations of federal and state wage and hour and other laws. In general, legal proceedings and claims, regardless of their merit, and associated internal investigations (especially those relating to intellectual property or confidential information disputes) are often expensive to prosecute, defend or conduct and may divert management’s attention and other Company resources. Moreover, the results of legal proceedings are difficult to predict, and the costs incurred in litigation can be substantial, regardless of outcome. We believe the amounts provided in our Condensed Consolidated Financial Statements are adequate in light of the probable and estimated liabilities. However, because such matters are subject to many uncertainties and the ultimate outcomes are not predictable, there can be no assurances that the actual amounts required to satisfy alleged liabilities from the matters described above will not exceed the amounts reflected in our Condensed Consolidated Financial Statements or will not have a material adverse effect on our results of operations, financial condition or cash flows. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Factoring. We have agreements (referred to as “factoring agreements”) with financial institutions to sell certain of our trade receivables and promissory notes from customers without recourse. We do not believe we are at risk for any material losses as a result of these agreements. In addition, we periodically sell certain letters of credit (“LC”), without recourse, received from customers in payment for goods and services. The following table shows total receivables sold under factoring agreements and proceeds from sales of LC for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Receivables sold under factoring agreements $ 67,118 $ 88,645 Proceeds from sales of LC $ 21,673 $ 19,130 Factoring and LC fees for the sale of certain trade receivables were recorded in other expense (income), net and were not material for the periods presented. Purchase Commitments. We maintain commitments to purchase inventory from our suppliers as well as goods, services and other assets in the ordinary course of business. Our liability under these purchase commitments is generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time-horizon can vary among different suppliers. Our estimate of our significant purchase commitments primarily for material, services, supplies and asset purchases is approximately $1.9 billion as of September 30, 2021, which are primarily due within the next 12 months. Actual expenditures will vary based upon the volume of the transactions and length of contractual service provided. In addition, the amounts paid under these arrangements may be less in the event that the arrangements are renegotiated or canceled. Certain agreements provide for potential cancellation penalties. Cash LTI Plan. As of September 30, 2021, we have committed $245.7 million for future payment obligations under our Cash LTI Plan. The calculation of compensation expense related to the Cash LTI Plan includes estimated forfeiture rate assumptions. Cash LTI awards issued to employees under the Cash LTI Plan vest in three or four equal installments, with one-third or one-fourth of the aggregate amount of the Cash LTI award vesting on each anniversary of the grant date over a three Guarantees and Contingencies. We maintain guarantee arrangements available through various financial institutions for up to $79.1 million, of which $66.5 million had been issued as of September 30, 2021, primarily to fund guarantees to customs authorities for value-added tax and other operating requirements of our subsidiaries in Europe, Israel and Asia. Indemnification Obligations. Subject to certain limitations, we are obligated to indemnify our current and former directors, officers and employees with respect to certain litigation matters and investigations that arise in connection with their service to us. These obligations arise under the terms of our certificate of incorporation, our bylaws, applicable contracts, and Delaware and California law. The obligation to indemnify generally means that we are required to pay or reimburse the individuals’ reasonable legal expenses and possibly damages and other liabilities incurred by several of our current and former directors, officers and employees in connection with these matters. For example, we have paid or reimbursed legal expenses incurred in connection with the investigation of our historical stock option practices and the related litigation and government inquiries. Although the maximum potential amount of future payments we could be required to make under the indemnification obligations generally described in this paragraph is theoretically unlimited, we believe the fair value of this liability, to the extent estimable, is appropriately considered within the reserve we have established for currently pending legal proceedings. We are a party to a variety of agreements pursuant to which we may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in connection with contracts and license agreements or the sale of assets, under which we customarily agree to hold the other party harmless against losses arising therefrom, or provide customers with other remedies to protect against, bodily injury or damage to personal property caused by our products, non-compliance with our product performance specifications, infringement by our products of third-party intellectual property rights and a breach of warranties, representations and covenants related to matters such as title to assets sold, validity of certain intellectual property rights, non-infringement of third-party rights, and certain income tax-related matters. In each of these circumstances, payment by us is typically subject to the other party making a claim to and cooperating with us pursuant to the procedures specified in the particular contract. This usually allows us to challenge the other party’s claims or, in case of breach of intellectual property representations or covenants, to control the defense or settlement of any third-party claims brought against the other party. Further, our obligations under these agreements may be limited in terms of amounts, activity (typically at our option to replace or correct the products or terminate the agreement with a refund to the other party), and duration. In some instances, we may have recourse against third parties and/or insurance covering certain payments made by us. In addition, we may in limited circumstances enter into agreements that contain customer-specific commitments on pricing, tool reliability, spare parts stocking levels, response time and other commitments. Furthermore, we may give these customers limited audit or inspection rights to enable them to confirm that we are complying with these commitments. If a customer elects to exercise its audit or inspection rights, we may be required to expend significant resources to support the audit or inspection, as well as to defend or settle any dispute with a customer that could potentially arise out of such audit or inspection. To date, we have made no significant accruals in our Condensed Consolidated Financial Statements for this contingency. While we have not in the past incurred significant expenses for resolving disputes regarding these types of commitments, we cannot make any assurance that we will not incur any such liabilities in the future. It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material effect on our business, financial condition, results of operations or cash flows. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The authoritative guidance requires companies to recognize all derivative instruments and hedging activities, including foreign currency exchange contracts and interest rate lock agreements, (collectively, “derivatives”) as either assets or liabilities at fair value on the Condensed Consolidated Balance Sheets. In accordance with the accounting guidance, we designate foreign currency exchange contracts and interest rate lock agreements as cash flow hedges of certain forecasted foreign currency denominated sales, purchase and spending transactions, and the benchmark interest rate of the corresponding debt financing, respectively. In accordance with the accounting guidance, we also designate foreign currency exchange contracts to hedge a portion of our investment in a foreign denominated subsidiary. Our foreign subsidiaries operate and sell our products in various global markets. As a result, we are exposed to risks relating to changes in foreign currency exchange rates. We utilize foreign currency forward exchange contracts and option contracts to hedge against future movements in foreign currency exchange rates that affect certain existing and forecasted foreign currency denominated sales and purchase transactions, such as the Japanese yen, the euro, the pound sterling and the Israeli new shekel. We routinely hedge our exposures to certain foreign currencies with various financial institutions in an effort to minimize the impact of certain currency exchange rate fluctuations. These currency forward exchange contracts and options, designated as cash flow hedges, generally have maturities of less than 18 months. Cash flow hedges are evaluated for effectiveness monthly, based on changes in total fair value of the derivatives. If a financial counterparty to any of our hedging arrangements experiences financial difficulties or is otherwise unable to honor the terms of the foreign currency hedge, we may experience material losses. In January 2020, we entered into a series of forward contracts (the “2020 Rate Lock Agreements”) with a notional amount of $350.0 million in aggregate to lock the benchmark interest rate on a portion of the 2020 Senior Notes. The 2020 Rate Lock Agreements were terminated on the date of the pricing of the 2020 Senior Notes and we recorded the fair value of $21.5 million as a loss within AOCI as of March 31, 2020, which is being amortized over the life of the debt. We entered into similar forward contracts in prior years to lock the benchmark interest rates prior to expected debt issuances, for which the original fair values of $13.6 million loss in fiscal 2019 and $7.5 million gain in fiscal 2015 were recognized in AOCI, and are being amortized to interest expense over the lives of the associated debt. We recognized net expenses of $0.3 million and $0.3 million for the three months ended September 30, 2021, and 2020, respectively, for the amortization of the net of the three rate lock agreements that had been recognized in AOCI, which increased the interest expense on a net basis. As of September 30, 2021, the aggregate unamortized portion of the fair value of the forward contracts for the Rate Lock Agreements was $28.7 million. For derivatives that are designated and qualify as cash flow hedges, the effective portion of the gains or losses is reported in AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Prior to adopting the new accounting guidance for hedge accounting, time value was excluded from the assessment of effectiveness for derivatives designated as cash flow hedges. Time value was amortized on a mark-to-market basis and recognized in earnings over the life of the derivative contract. For derivative contracts executed after adopting the new accounting guidance, the election to include time value for the assessment of effectiveness is made on all forward contracts designated as cash flow hedges. The change in fair value of the derivative is recorded in AOCI until the hedged item is recognized in earnings. The assessment of effectiveness of options contracts designated as cash flow hedges continues to exclude time value after adopting the new accounting guidance. The initial value of the component excluded from the assessment of effectiveness is recognized in earnings over the life of the derivative contract. Any difference between change in the fair value of the excluded components and the amounts recognized in earnings are recorded in AOCI. For derivatives that are designated and qualify as a net investment hedge in a foreign operation and that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded in cumulative translation within AOCI. The remainder of the change in value of such instruments is recorded in earnings using the mark-to-market approach. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation or sale of the net investment in the hedged foreign operations. For derivatives that are not designated as hedges, gains and losses are recognized in other expense (income), net. We use foreign currency forward contracts to hedge certain foreign currency denominated assets or liabilities. The gains and losses on these derivative instruments are largely offset by the changes in the fair value of the assets or liabilities being hedged. Derivatives Designated in Hedging Relationships: Foreign Exchange and Interest Rate Contracts The gains (losses) on derivatives in cash flow and net investment hedging relationships recognized in other comprehensive income for the indicated periods were as follows: Three Months Ended September 30, (In thousands) 2021 2020 Derivatives Designated as Cash Flow Hedging Instruments: Foreign exchange contracts: Amounts included in the assessment of effectiveness $ 853 $ (872) Amounts excluded from the assessment of effectiveness $ (1) $ (46) Derivatives Designated as Net Investment Hedging Instruments: Foreign exchange contracts (1) : $ 650 $ — __________________ (1) No amounts were reclassified from AOCI into earnings related to the sale of a subsidiary, as there were no such sales during the periods presented. The locations and amounts of designated and non-designated derivatives’ gains and losses reported in the Condensed Consolidated Statements of Operations for the indicated periods were as follows: Three Months Ended September 30, Three Months Ended September 30, 2021 2020 (In thousands) Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Total amounts presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 2,083,838 $ 1,265,038 $ 38,312 $ 14,140 $ 1,538,620 $ 1,012,231 $ 39,386 $ 3,197 Gains (losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from AOCI to earnings $ — $ — $ (279) $ — $ — $ — $ (279) $ — Foreign exchange contracts: Amount of gains (losses) reclassified from AOCI to earnings $ 1,843 $ (232) $ — $ — $ (90) $ 550 $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings $ (114) $ — $ — $ 657 $ (127) $ — $ — $ — Gains (losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ 1,069 $ — $ — $ — $ (5,598) The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts, with maximum remaining maturities of approximately 7 months as of the dates indicated below were as follows: As of As of (In thousands) September 30, 2021 June 30, 2021 Cash flow hedge contracts - foreign currency Purchase $ 11,456 $ 12,550 Sell $ 129,603 $ 134,845 Net Investment hedge contracts - foreign currency Sell $ 66,848 $ 66,848 Other foreign currency hedge contracts Purchase $ 274,334 $ 264,292 Sell $ 248,813 $ 278,635 The locations and fair value of our derivatives reported in our Condensed Consolidated Balance Sheets as of the dates indicated below were as follows: Asset Derivatives Liability Derivatives Balance Sheet As of As of Balance Sheet As of As of Location September 30, 2021 June 30, 2021 Location September 30, 2021 June 30, 2021 (In thousands) Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts Other current assets $ 4,104 $ 3,940 Other current liabilities $ (346) $ 272 Total derivatives designated as hedging instruments 4,104 3,940 (346) 272 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets 6,052 4,312 Other current liabilities (4,002) 2,535 Total derivatives not designated as hedging instruments 6,052 4,312 (4,002) 2,535 Total derivatives $ 10,156 $ 8,252 $ (4,348) $ 2,807 The changes in AOCI, before taxes, related to derivatives for the indicated periods were as follows: Three Months Ended September 30, (In thousands) 2021 2020 Beginning AOCI $ (25,830) $ (29,602) Amount reclassified to earnings as net (gains) losses (1,218) (54) Net change in unrealized gains (losses) 1,502 (918) Ending AOCI $ (25,546) $ (30,574) Offsetting of Derivative Assets and Liabilities We present derivatives at gross fair values in the Condensed Consolidated Balance Sheets. We have entered into arrangements with each of our counterparties, which reduce credit risk by permitting net settlement of transactions with the same counterparty under certain conditions. The information related to the offsetting arrangements for the periods indicated was as follows (in thousands): As of September 30, 2021 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 10,156 $ — $ 10,156 $ (3,522) $ — $ 6,634 Derivatives - Liabilities $ (4,348) $ — $ (4,348) $ 3,522 $ — $ (826) As of June 30, 2021 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 8,252 $ — $ 8,252 $ (2,492) $ — $ 5,760 Derivatives - Liabilities $ (2,807) $ — $ (2,807) $ 2,492 $ — $ (315) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the three months ended September 30, 2021 and 2020, we purchased from, or sold to, several entities, where one or more of our executive officers or members of our Board of Directors or their immediate family members were, during the periods presented, an executive officer or a board member of a subsidiary, or in the case of The Vanguard Group, Inc., together with its affiliates, beneficially owns more than 10% of our outstanding stock, including Ansys, Inc., Citrix Systems, Inc., HP Inc., Keysight Technologies, Inc., and Proofpoint, Inc. The following table provides the transactions with these parties for the indicated periods (for the portion of such period that they were considered related): Three Months Ended September 30, (In thousands) 2021 2020 Total revenues $ 79 $ 314 Total purchases $ 359 $ 292 |
SEGMENT REPORTING AND GEOGRAPHI
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | SEGMENT REPORTING AND GEOGRAPHIC INFORMATION ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. We have four reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; Printed Circuit Board (“PCB”), Display and Component Inspection; and Other. The reportable segments are determined based on several factors including, but not limited to, customer base, homogeneity of products, technology, delivery channels and similar economic characteristics. Semiconductor Process Control The Semiconductor Process Control (“SPC”) segment offers a comprehensive portfolio of inspection, metrology and data analytics products, and related service, which helps integrated circuit ("IC") manufacturers achieve target yield throughout the entire semiconductor fabrication process – from research and development to final volume production. Our differentiated products and services are designed to provide comprehensive solutions that help our customers accelerate development and production ramp cycles, achieve higher and more stable semiconductor die yields and improve their overall profitability. This reportable segment is comprised of two operating segments, Wafer Inspection and Patterning and GSS. Specialty Semiconductor Process The Specialty Semiconductor Manufacturing segment develops and sells advanced vacuum deposition and etching process tools, which are used by a broad range of specialty semiconductor customers, including manufacturers of microelectromechanical systems, radio frequency communication chips, and power semiconductors for automotive and industrial applications. This reportable segment is comprised of one operating segment. PCB, Display and Component Inspection The PCB, Display and Component Inspection segment enables electronic device manufacturers to inspect, test and measure PCBs, flat panel displays and ICs to verify their quality, pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces. This segment also engages in the development and marketing of character recognition solutions to banks, financial and other payment processing institutions and healthcare providers. This reportable segment is comprised of two operating segments, PCB and Display and Component Inspection. Other The Other segment is comprised of one operating segment. During the fourth quarter of fiscal 2020, we entered into an Asset Purchase Agreement to sell certain core assets of our non-strategic solar energy business, which accounted for the majority of our Other reportable segment. The sale was completed in the first quarter of fiscal 2021. The CODM assesses the performance of each operating segment and allocates resources to those segments based on total revenues and segment gross margin and does not evaluate the segments using discrete asset information. Segment gross margin excludes corporate allocations and effects of foreign currency exchange rates, amortization of intangible assets, amortization of inventory fair value adjustments, and transaction costs associated with our acquisitions related to costs of revenues. The following is a summary of results for each of our four reportable segments for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 SPC: Revenues $ 1,779,083 $ 1,267,954 Segment gross margin 1,161,929 814,810 Specialty Semiconductor Process: Revenues 102,029 88,954 Segment gross margin 54,721 49,928 PCB, Display and Component Inspection: Revenues 202,808 181,177 Segment gross margin 94,476 90,169 Other: Revenues — 140 Segment gross margin — 13 Totals: Revenues for reportable segments $ 2,083,920 $ 1,538,225 Segment gross margin $ 1,311,126 $ 954,920 The following table reconciles total revenues for reportable segments to total revenues for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Total revenues for reportable segments $ 2,083,920 $ 1,538,225 Corporate allocations and effects of foreign exchange rates (82) 395 Total revenues $ 2,083,838 $ 1,538,620 The following table reconciles total segment gross margin to total income before income taxes for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Total segment gross margin $ 1,311,126 $ 954,920 Acquisition-related charges, corporate allocations, and effects of foreign exchange rates (1) 40,912 36,862 Research and development 258,153 219,038 Selling, general and administrative 193,261 172,631 Interest expense 38,312 39,386 Other expense (income), net 14,140 3,197 Income before income taxes $ 766,348 $ 483,806 __________________ (1) Acquisition-related charges primarily include amortization of intangible assets and amortization of inventory fair value adjustments presented as part of costs of revenues. Our significant operations outside the United States include manufacturing facilities in China, Germany, Israel and Singapore and sales, marketing and service offices in Japan, the rest of the Asia Pacific region and Europe. For geographical revenue reporting, revenues are attributed to the geographic location in which the customer is located. Long-lived assets consist of land, property and equipment, net, and are attributed to the geographic region in which they are located. The following is a summary of revenues by geographic region, based on ship-to location, for the indicated periods: (Dollar amounts in thousands) Three Months Ended September 30, 2021 2020 Revenues: China $ 685,156 33 % $ 486,089 32 % Taiwan 627,084 30 % 369,100 24 % Korea 239,183 12 % 189,518 12 % North America 177,740 9 % 170,176 11 % Japan 175,167 8 % 164,419 11 % Rest of Asia 92,068 4 % 76,201 5 % Europe and Israel 87,440 4 % 83,117 5 % Total $ 2,083,838 100 % $ 1,538,620 100 % The following is a summary of revenues by major product categories for the indicated periods: (Dollar amounts in thousands) Three Months Ended September 30, 2021 2020 Revenues: Wafer Inspection $ 887,512 43 % $ 519,551 34 % Patterning 439,591 21 % 370,932 24 % Specialty Semiconductor Process 93,120 4 % 74,027 5 % PCB, Display and Component Inspection 137,887 7 % 120,626 8 % Services 453,950 22 % 393,125 26 % Other 71,778 3 % 60,359 3 % Total $ 2,083,838 100 % $ 1,538,620 100 % Wafer Inspection and Patterning products are offered in the SPC segment. Services are offered in multiple segments. Other includes primarily refurbished systems, remanufactured legacy systems, and enhancements and upgrades for previous-generation products which are part of the SPC segment. In the three months ended September 30, 2021, one customer accounted for approximately 24% of total revenues. In the three months ended September 30, 2020, two customers accounted for approximately 14% and 12% of total revenues. One customer on an individual basis accounted for greater than 10% of net accounts receivable at September 30, 2021 and at June 30, 2021, respectively. Land, property and equipment, net by geographic region as of the dates indicated below were as follows: As of As of (In thousands) September 30, 2021 June 30, 2021 Land, property and equipment, net: United States $ 476,809 $ 447,359 Singapore 81,160 76,882 Israel 60,064 57,403 Europe 56,153 56,895 Rest of Asia 24,361 24,488 Total $ 698,547 $ 663,027 |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGESFrom time to time, management approves restructuring plans including workforce reductions in an effort to streamline operations.Restructuring charges were $0.5 million and $3.5 million for the three months ended September 30, 2021 and 2020, respectively. As of September 30, 2021 and June 30, 2021, the accrual for restructuring charges was $3.4 million and $3.3 million, respectively. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 (“SEC”). 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 months ended September 30, 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 | 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company continues to monitor new accounting pronouncements issued by the Financial Accounting Board (“FASB”) and does not believe any accounting pronouncements issued through the date of this report will have an impact on the Company’s 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 Standard 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. |
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. 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 | 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. 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. 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. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of 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 of As of (Dollar amounts in thousands) September 30, 2021 June 30, 2021 $ Change % Change Accounts receivable, net $ 1,463,974 $ 1,305,479 $ 158,495 12 % Contract assets $ 94,877 $ 91,052 $ 3,825 4 % Contract liabilities $ 701,411 $ 667,703 $ 33,708 5 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | 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 Assets Significant Other Observable Inputs Little or No Market Activity Inputs As of September 30, 2021 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 690,579 $ 690,579 $ — $ — Marketable securities: Corporate debt securities 467,529 — 467,529 — Municipal securities 70,892 — 70,892 — Sovereign securities 5,049 — 5,049 — U.S. Government agency securities 126,147 126,147 — — U.S. Treasury securities 247,764 241,815 5,949 — Equity securities (1) 18,653 18,653 — — Total cash equivalents and marketable securities (2) 1,626,613 1,077,194 549,419 — Other current assets: Derivative assets 10,156 — 10,156 — Other non-current assets: Executive Deferred Savings Plan 262,042 199,933 62,109 — Total financial assets (2) $ 1,898,811 $ 1,277,127 $ 621,684 $ — Liabilities Derivative liabilities $ (4,348) $ — $ (4,348) $ — Deferred payments (4,625) — — (4,625) Contingent consideration payable (21,324) — — (21,324) Total financial liabilities $ (30,297) $ — $ (4,348) $ (25,949) ________________ (1) Transfer from Level 2 to Level 1 as the security-specific restriction expired during the three months ended September 30, 2021. (2) Excludes cash of $747.6 million held in operating accounts and time deposits of $250.6 million (of which $71.3 million were cash equivalents) as of September 30, 2021. 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 Assets Significant Other Observable Inputs Little or No Market Activity Inputs As of June 30, 2021 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 691,375 $ 691,375 $ — $ — Marketable securities: Corporate debt securities 468,746 — 468,746 — Municipal securities 70,228 — 70,228 — Sovereign securities 3,052 — 3,052 — U.S. Government agency securities 145,921 145,921 — — U.S. Treasury securities 233,064 205,055 28,009 — Equity securities 29,930 — 29,930 — Total cash equivalents and marketable securities (1) 1,642,316 1,042,351 599,965 — Other current assets: Derivative assets 8,252 — 8,252 — Other non-current assets: Executive Deferred Savings Plan 266,199 200,925 65,274 — Total financial assets (1) $ 1,916,767 $ 1,243,276 $ 673,491 $ — Liabilities Derivative liabilities $ (2,807) $ — $ (2,807) $ — Deferred payments (4,550) — — (4,550) Contingent consideration payable (8,514) — — (8,514) Total financial liabilities $ (15,871) $ — $ (2,807) $ (13,064) ________________ (1) Excludes cash of $641.6 million held in operating accounts and time deposits of $210.6 million (of which $101.7 million were cash equivalents) as of June 30, 2021. |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet Components | Condensed Consolidated Balance Sheets As of As of (In thousands) September 30, 2021 June 30, 2021 Accounts receivable, net: Accounts receivable, gross $ 1,481,868 $ 1,323,515 Allowance for credit losses (17,894) (18,036) $ 1,463,974 $ 1,305,479 Inventories: Customer service parts $ 348,913 $ 349,743 Raw materials 696,314 595,151 Work-in-process 426,855 453,432 Finished goods 243,257 177,054 $ 1,715,339 $ 1,575,380 Other current assets: Prepaid expenses $ 112,592 $ 76,649 Contract assets 94,877 91,052 Deferred costs of revenues 69,865 59,953 Prepaid income and other taxes 23,893 68,847 Other current assets 39,319 24,366 $ 340,546 $ 320,867 Land, property and equipment, net: Land $ 67,862 $ 67,862 Buildings and leasehold improvements 463,865 458,605 Machinery and equipment 745,877 743,710 Office furniture and fixtures 32,029 32,856 Construction-in-process 215,038 182,320 1,524,671 1,485,353 Less: accumulated depreciation (826,124) (822,326) $ 698,547 $ 663,027 Other non-current assets: Executive Deferred Savings Plan (1) $ 262,041 $ 266,199 Operating lease right of use assets 99,616 102,883 Other non-current assets 77,056 75,823 $ 438,713 $ 444,905 Other current liabilities: Customer credits and advances $ 421,928 $ 250,784 Compensation and benefits 421,677 305,445 Executive Deferred Savings Plan 264,740 268,028 Other accrued expenses 177,045 180,982 Income taxes payable 162,494 87,320 Interest payable 34,766 36,135 Operating lease liabilities 32,946 32,322 $ 1,515,596 $ 1,161,016 Other non-current liabilities: Income taxes payable $ 314,623 $ 333,866 Pension liabilities 86,817 87,602 Operating lease liabilities 65,940 70,739 Other non-current liabilities 153,201 139,083 $ 620,581 $ 631,290 ________________ (1) We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense (benefit) associated with changes in the EDSP liability included in selling, general and administrative expense was $(1.0) million and $13.2 million during the three months ended September 30, 2021 and 2020, respectively. The amount of net gains (losses) associated with changes in the EDSP assets included in selling, general and administrative expense was $(1.1) million and $13.3 million during the three months ended September 30, 2021 and 2020, respectively. For additional details, refer to 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. |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of AOCI as of the dates indicated below were as follows: (In thousands) Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Gains (Losses) on Derivatives Unrealized Gains (Losses) on Defined Benefit Plans Total Balance as of September 30, 2021 $ (35,001) $ 345 $ (20,519) $ (22,869) $ (78,044) Balance as of June 30, 2021 $ (32,563) $ 595 $ (20,092) $ (23,497) $ (75,557) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The effects on net income (loss) of amounts reclassified from AOCI to the Condensed Consolidated Statements of Operations for the indicated period were as follows (in thousands): AOCI Components Location in the Condensed Consolidated Statements of Operations Three Months Ended September 30, 2021 2020 Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts Revenues $ 1,729 $ (217) Costs of revenues and operating expenses (232) 550 Interest expense (279) (279) Net gains (losses) reclassified from AOCI $ 1,218 $ 54 Unrealized gains (losses) on available-for-sale securities Other expense (income), net $ 1 $ 101 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The amortized cost and fair value of marketable securities as of the dates indicated below were as follows: As of September 30, 2021 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 467,126 $ 516 $ (113) $ 467,529 Money market funds and other 690,579 — — 690,579 Municipal securities 70,830 83 (21) 70,892 Sovereign securities 5,044 7 (2) 5,049 U.S. Government agency securities 126,088 103 (44) 126,147 U.S. Treasury securities 247,853 30 (119) 247,764 Equity securities (1) 3,211 15,442 — 18,653 Subtotal 1,610,731 16,181 (299) 1,626,613 Add: Time deposits (2) 250,553 — — 250,553 Less: Cash equivalents 761,917 — — 761,917 Marketable securities $ 1,099,367 $ 16,181 $ (299) $ 1,115,249 As of June 30, 2021 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 468,192 $ 689 $ (135) $ 468,746 Money market funds and other 691,375 — — 691,375 Municipal securities 70,155 106 (33) 70,228 Sovereign securities 3,045 7 — 3,052 U.S. Government agency securities 145,810 160 (49) 145,921 U.S. Treasury securities 233,052 129 (117) 233,064 Equity securities (1) 3,211 26,719 — 29,930 Subtotal 1,614,840 27,810 (334) 1,642,316 Add: Time deposits (2) 210,636 — — 210,636 Less: Cash equivalents 793,040 — — 793,040 Marketable securities $ 1,032,436 $ 27,810 $ (334) $ 1,059,912 ________________ (1) Unrealized gains on equity securities included in our portfolio consist of the initial fair value adjustment recorded upon a security becoming marketable. (2) Time deposits excluded from fair value measurements. |
Schedule of Investments with Gross Unrealized Losses | The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the date indicated below, none of which were in a continuous loss position for 12 months or more: As of September 30, 2021 (In thousands) Fair Value Gross Corporate debt securities $ 142,915 $ (113) Sovereign securities 2,002 (2) Municipal securities 16,727 (21) U.S. Government agency securities 37,410 (44) U.S. Treasury securities 172,839 (119) Total $ 371,893 $ (299) As of June 30, 2021 (In thousands) Fair Value Gross Corporate debt securities $ 161,012 $ (135) Municipal securities 21,605 (33) U.S. Government agency securities 38,904 (49) U.S. Treasury securities 117,761 (117) Total $ 339,282 $ (334) |
Schedule of Contractual Maturities of Securities | The contractual maturities of securities classified as available-for-sale, regardless of their classification on our Condensed Consolidated Balance Sheets, as of the date indicated below were as follows: As of September 30, 2021 (In thousands) Amortized Cost Fair Value Due within one year $ 547,941 $ 563,772 Due after one year through three years 551,426 551,477 Total $ 1,099,367 $ 1,115,249 |
GOODWILL AND PURCHASED INTANG_2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Balances | The following table presents changes in goodwill carrying value during the three months ended September 30, 2021 (1) : (In thousands) Wafer Inspection and Patterning Global Service and Support ( “ GSS ” ) Specialty Semiconductor Process PCB and Display Component Inspection Total Balance as of June 30, 2021 $ 416,860 $ 25,908 $ 681,858 $ 872,971 $ 13,575 $ 2,011,172 Acquired goodwill 30,164 — — — — 30,164 Foreign currency adjustments 2 — — — — 2 Balance as of September 30, 2021 $ 447,026 $ 25,908 $ 681,858 $ 872,971 $ 13,575 $ 2,041,338 _________________ (1) No goodwill was assigned to the Other reporting unit and, accordingly, it was excluded from the table above. |
Schedule of Components of Purchased Intangible Assets | The components of purchased intangible assets as of the dates indicated below were as follows: (In thousands) As of September 30, 2021 As of June 30, 2021 Category Range of Useful Lives (in years) Gross Accumulated Net Gross Accumulated Net Existing technology 4-8 $ 1,400,191 $ 540,125 $ 860,066 $ 1,382,612 $ 499,219 $ 883,393 Customer relationships 4-9 313,317 139,919 173,398 305,817 131,386 174,431 Trade name / Trademark 4-7 117,983 57,100 60,883 117,383 53,493 63,890 Backlog and other <1-9 51,836 50,242 1,594 50,403 49,962 441 Intangible assets subject to amortization 1,883,327 787,386 1,095,941 1,856,215 734,060 1,122,155 In-process research and development 67,656 6,062 61,594 63,256 100 63,156 Total $ 1,950,983 $ 793,448 $ 1,157,535 $ 1,919,471 $ 734,160 $ 1,185,311 |
Schedule of Amortization Expense for Purchased Intangible Assets | Amortization expense for purchased intangible assets for the periods indicated below was as follows: Three Months Ended September 30, (In thousands) 2021 2020 Amortization expense - Costs of revenues $ 41,124 $ 37,040 Amortization expense - Selling, general and administrative 12,389 13,429 Amortization expense - Research and development 31 31 Total $ 53,544 $ 50,500 |
Schedule of Remaining Estimated Amortization Expense | Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2021, the remaining estimated annual amortization expense is expected to be as follows: Fiscal year ending June 30: Amortization (In thousands) 2022 (remaining nine months) $ 160,633 2023 212,609 2024 209,615 2025 197,396 2026 182,071 2027 and thereafter 133,617 Total $ 1,095,941 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our debt as of September 30, 2021 and June 30, 2021: As of September 30, 2021 As of June 30, 2021 Amount Effective Amount Effective Fixed-rate 4.650% Senior Notes due on November 1, 2024 $ 1,250,000 4.682 % $ 1,250,000 4.682 % Fixed-rate 5.650% Senior Notes due on November 1, 2034 250,000 5.670 % 250,000 5.670 % Fixed-rate 4.100% Senior Notes due on March 15, 2029 800,000 4.159 % 800,000 4.159 % Fixed-rate 5.000% Senior Notes due on March 15, 2049 400,000 5.047 % 400,000 5.047 % Fixed-rate 3.300% Senior Notes due on March 1, 2050 750,000 3.302 % 750,000 3.302 % Fixed-rate 3.590% Note Payable due on February 20, 2022 20,000 2.300 % 20,000 2.300 % Total 3,470,000 3,470,000 Unamortized discount/premium, net (7,023) (7,168) Unamortized debt issuance costs (19,541) (20,065) Total $ 3,443,436 $ 3,442,767 Reported as: Short-term debt $ 20,000 $ 20,000 Long-term debt 3,423,436 3,422,767 Total $ 3,443,436 $ 3,442,767 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Leases Cost | Supplemental cash flow information related to leases was as follows: Three Months Ended September 30, In thousands 2021 2020 Operating cash outflows from operating leases $ 9,485 $ 9,370 Right of use assets obtained in exchange for new operating lease liabilities $ 5,955 $ 6,844 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2021 were as follows: Fiscal Year Ending June 30: (In thousands) 2022 (remaining nine months) $ 26,328 2023 26,059 2024 16,672 2025 12,161 2026 9,156 2027 and thereafter 12,644 Total lease payments 103,020 Less imputed interest (4,134) Total $ 98,886 |
EQUITY, LONG-TERM INCENTIVE C_2
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Combined Activity Under Equity Incentive Plans | The following table summarizes the combined activity under our equity incentive plans: (In thousands) Available For Grant (1) (2) Balance as of June 30, 2021 10,253 RSUs granted (3) (436) RSUs granted adjustment (4) 39 RSUs canceled 28 Balance as of September 30, 2021 9,884 __________________ (1) The number of RSUs reflects the application of the award multiplier of 2.0x to calculate the impact of the award on the shares reserved under the 2004 Plan. (2) No additional stock options, RSUs or other awards will be granted under the Assumed Equity Plans. (3) Includes RSUs granted to senior management during the three months ended September 30, 2021 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such RSUs that are deemed to have been earned) (“performance-based RSUs”). This line item includes all such performance-based RSUs granted during the three months ended September 30, 2021 reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied (0.2 million shares for the three months ended September 30, 2021 reflects the application of the multiplier described above). (4) Represents the portion of RSUs granted with performance-based vesting criteria and reported at the actual number of shares issued upon achievement of the performance vesting criteria during the three months ended September 30, 2021. |
Schedule of Stock-based Compensation Expense | The following table shows stock-based compensation expense for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Stock-based compensation expense by: Costs of revenues $ 3,838 $ 3,667 Research and development 4,694 5,471 Selling, general and administrative 16,684 17,854 Total stock-based compensation expense $ 25,216 $ 26,992 |
Schedule of Restricted Stock Activity | The following table shows the activity and weighted-average grant date fair values for RSUs during the three months ended September 30, 2021: Shares (1) (In thousands) Weighted-Average Outstanding RSUs as of June 30, 2021 (2) 1,710 $ 133.76 Granted (3) 218 $ 353.71 Granted adjustments (19) $ 118.47 Vested and released (160) $ 125.29 Withheld for taxes (133) $ 125.29 Forfeited (16) $ 105.45 Outstanding RSUs as of September 30, 2021 (2) 1,600 $ 165.75 __________________ (1) Share numbers reflect actual shares subject to awarded RSUs. (2) Includes performance-based RSUs. (3) This line item includes performance-based RSUs granted during the three months ended September 30, 2021 reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied (0.1 million shares for the three months ended September 30, 2021). |
Schedule of Grant Date Fair Value, Weighted Average Grant Date Fair Value, and Tax Benefits for Restricted Stock Units | The following table shows the weighted-average grant date fair value per unit for the RSUs granted, vested, and tax benefits realized by us in connection with vested and released RSUs for the indicated periods : Three Months Ended September 30, (In thousands, except for weighted-average grant date fair value) 2021 2020 Weighted-average grant date fair value per unit $ 353.71 $ 201.95 Grant date fair value of vested RSUs $ 36,740 $ 27,302 Tax benefits realized by us in connection with vested and released RSUs $ 9,008 $ 6,737 |
Schedule of Employee Stock Purchase Rights Valuation | The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes model and the straight-line attribution approach with the following weighted-average assumptions: Three Months Ended September 30, 2021 2020 Stock purchase plan: Expected stock price volatility 34.9 % 51.9 % Risk-free interest rate 0.1 % 0.7 % Dividend yield 1.4 % 1.9 % Expected life (in years) 0.5 0.5 |
Schedule of Tax Benefits Realized and Weighted-average fair value for the ESPP | The following table shows total cash received from employees for the issuance of shares under the ESPP, the number of shares purchased by employees through the ESPP, the tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods: (In thousands, except for weighted-average fair value per share) Three Months Ended September 30, 2021 2020 Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP $ 967 $ 892 Weighted-average fair value per share based on Black-Scholes model $ 71.82 $ 52.23 |
STOCK REPURCHASE PROGRAM (Table
STOCK REPURCHASE PROGRAM (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Share Repurchases | Share repurchases for the indicated periods (based on the trade date of the applicable repurchase) were as follows: Three Months Ended September 30, (In thousands) 2021 2020 Number of shares of common stock repurchased 1,190 1,027 Total cost of repurchases $ 399,677 $ 193,897 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income per Share | The following table sets forth the computation of basic and diluted net income per share attributable to KLA: (In thousands, except per share amounts) Three Months Ended September 30, 2021 2020 Numerator: Net income attributable to KLA $ 1,068,417 $ 420,567 Denominator: Weighted-average shares - basic, excluding unvested restricted stock units 152,330 155,281 Effect of dilutive restricted stock units and options 1,080 1,161 Weighted-average shares - diluted 153,410 156,442 Basic net income per share attributable to KLA $ 7.01 $ 2.71 Diluted net income per share attributable to KLA $ 6.96 $ 2.69 Anti-dilutive securities excluded from the computation of diluted net income per share 135 169 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Details of Income Taxes | The following table provides details of income taxes: Three Months Ended September 30, (Dollar amounts in thousands) 2021 2020 Income before income taxes $ 766,348 $ 483,806 Provision (benefit) for income taxes $ (302,137) $ 63,664 Effective tax rate (39.4) % 13.2 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Receivables Sold Under Factoring Agreements | The following table shows total receivables sold under factoring agreements and proceeds from sales of LC for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Receivables sold under factoring agreements $ 67,118 $ 88,645 Proceeds from sales of LC $ 21,673 $ 19,130 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Location, Designated and Non-Designated, Gains (Losses) | The gains (losses) on derivatives in cash flow and net investment hedging relationships recognized in other comprehensive income for the indicated periods were as follows: Three Months Ended September 30, (In thousands) 2021 2020 Derivatives Designated as Cash Flow Hedging Instruments: Foreign exchange contracts: Amounts included in the assessment of effectiveness $ 853 $ (872) Amounts excluded from the assessment of effectiveness $ (1) $ (46) Derivatives Designated as Net Investment Hedging Instruments: Foreign exchange contracts (1) : $ 650 $ — __________________ (1) No amounts were reclassified from AOCI into earnings related to the sale of a subsidiary, as there were no such sales during the periods presented. The locations and amounts of designated and non-designated derivatives’ gains and losses reported in the Condensed Consolidated Statements of Operations for the indicated periods were as follows: Three Months Ended September 30, Three Months Ended September 30, 2021 2020 (In thousands) Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Total amounts presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 2,083,838 $ 1,265,038 $ 38,312 $ 14,140 $ 1,538,620 $ 1,012,231 $ 39,386 $ 3,197 Gains (losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from AOCI to earnings $ — $ — $ (279) $ — $ — $ — $ (279) $ — Foreign exchange contracts: Amount of gains (losses) reclassified from AOCI to earnings $ 1,843 $ (232) $ — $ — $ (90) $ 550 $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings $ (114) $ — $ — $ 657 $ (127) $ — $ — $ — Gains (losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ 1,069 $ — $ — $ — $ (5,598) |
Schedule of Notional Amounts of Derivatives Outstanding | The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts, with maximum remaining maturities of approximately 7 months as of the dates indicated below were as follows: As of As of (In thousands) September 30, 2021 June 30, 2021 Cash flow hedge contracts - foreign currency Purchase $ 11,456 $ 12,550 Sell $ 129,603 $ 134,845 Net Investment hedge contracts - foreign currency Sell $ 66,848 $ 66,848 Other foreign currency hedge contracts Purchase $ 274,334 $ 264,292 Sell $ 248,813 $ 278,635 |
Schedule of Derivative Instruments, Fair Value | The locations and fair value of our derivatives reported in our Condensed Consolidated Balance Sheets as of the dates indicated below were as follows: Asset Derivatives Liability Derivatives Balance Sheet As of As of Balance Sheet As of As of Location September 30, 2021 June 30, 2021 Location September 30, 2021 June 30, 2021 (In thousands) Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts Other current assets $ 4,104 $ 3,940 Other current liabilities $ (346) $ 272 Total derivatives designated as hedging instruments 4,104 3,940 (346) 272 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets 6,052 4,312 Other current liabilities (4,002) 2,535 Total derivatives not designated as hedging instruments 6,052 4,312 (4,002) 2,535 Total derivatives $ 10,156 $ 8,252 $ (4,348) $ 2,807 |
Schedule of Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments | The changes in AOCI, before taxes, related to derivatives for the indicated periods were as follows: Three Months Ended September 30, (In thousands) 2021 2020 Beginning AOCI $ (25,830) $ (29,602) Amount reclassified to earnings as net (gains) losses (1,218) (54) Net change in unrealized gains (losses) 1,502 (918) Ending AOCI $ (25,546) $ (30,574) |
Offsetting of Derivative Assets | The information related to the offsetting arrangements for the periods indicated was as follows (in thousands): As of September 30, 2021 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 10,156 $ — $ 10,156 $ (3,522) $ — $ 6,634 Derivatives - Liabilities $ (4,348) $ — $ (4,348) $ 3,522 $ — $ (826) As of June 30, 2021 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 8,252 $ — $ 8,252 $ (2,492) $ — $ 5,760 Derivatives - Liabilities $ (2,807) $ — $ (2,807) $ 2,492 $ — $ (315) |
Offsetting of Derivative Liabilities | The information related to the offsetting arrangements for the periods indicated was as follows (in thousands): As of September 30, 2021 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 10,156 $ — $ 10,156 $ (3,522) $ — $ 6,634 Derivatives - Liabilities $ (4,348) $ — $ (4,348) $ 3,522 $ — $ (826) As of June 30, 2021 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 8,252 $ — $ 8,252 $ (2,492) $ — $ 5,760 Derivatives - Liabilities $ (2,807) $ — $ (2,807) $ 2,492 $ — $ (315) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table provides the transactions with these parties for the indicated periods (for the portion of such period that they were considered related): Three Months Ended September 30, (In thousands) 2021 2020 Total revenues $ 79 $ 314 Total purchases $ 359 $ 292 |
SEGMENT REPORTING AND GEOGRAP_2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Results for Reportable Segments | The following is a summary of results for each of our four reportable segments for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 SPC: Revenues $ 1,779,083 $ 1,267,954 Segment gross margin 1,161,929 814,810 Specialty Semiconductor Process: Revenues 102,029 88,954 Segment gross margin 54,721 49,928 PCB, Display and Component Inspection: Revenues 202,808 181,177 Segment gross margin 94,476 90,169 Other: Revenues — 140 Segment gross margin — 13 Totals: Revenues for reportable segments $ 2,083,920 $ 1,538,225 Segment gross margin $ 1,311,126 $ 954,920 |
Schedule of Reconciliation of Total Reportable Segments Revenue to Total Revenue | The following table reconciles total revenues for reportable segments to total revenues for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Total revenues for reportable segments $ 2,083,920 $ 1,538,225 Corporate allocations and effects of foreign exchange rates (82) 395 Total revenues $ 2,083,838 $ 1,538,620 |
Schedule of Reconciliation of Total Segment Gross Margin to Total Income Before Income Taxes | The following table reconciles total segment gross margin to total income before income taxes for the indicated periods: Three Months Ended September 30, (In thousands) 2021 2020 Total segment gross margin $ 1,311,126 $ 954,920 Acquisition-related charges, corporate allocations, and effects of foreign exchange rates (1) 40,912 36,862 Research and development 258,153 219,038 Selling, general and administrative 193,261 172,631 Interest expense 38,312 39,386 Other expense (income), net 14,140 3,197 Income before income taxes $ 766,348 $ 483,806 __________________ |
Schedule of Revenues by Geographic Region | The following is a summary of revenues by geographic region, based on ship-to location, for the indicated periods: (Dollar amounts in thousands) Three Months Ended September 30, 2021 2020 Revenues: China $ 685,156 33 % $ 486,089 32 % Taiwan 627,084 30 % 369,100 24 % Korea 239,183 12 % 189,518 12 % North America 177,740 9 % 170,176 11 % Japan 175,167 8 % 164,419 11 % Rest of Asia 92,068 4 % 76,201 5 % Europe and Israel 87,440 4 % 83,117 5 % Total $ 2,083,838 100 % $ 1,538,620 100 % |
Schedule of Revenues by Major Products | The following is a summary of revenues by major product categories for the indicated periods: (Dollar amounts in thousands) Three Months Ended September 30, 2021 2020 Revenues: Wafer Inspection $ 887,512 43 % $ 519,551 34 % Patterning 439,591 21 % 370,932 24 % Specialty Semiconductor Process 93,120 4 % 74,027 5 % PCB, Display and Component Inspection 137,887 7 % 120,626 8 % Services 453,950 22 % 393,125 26 % Other 71,778 3 % 60,359 3 % Total $ 2,083,838 100 % $ 1,538,620 100 % |
Schedule of Long-Lived Assets by Geographic Region | Land, property and equipment, net by geographic region as of the dates indicated below were as follows: As of As of (In thousands) September 30, 2021 June 30, 2021 Land, property and equipment, net: United States $ 476,809 $ 447,359 Singapore 81,160 76,882 Israel 60,064 57,403 Europe 56,153 56,895 Rest of Asia 24,361 24,488 Total $ 698,547 $ 663,027 |
REVENUE - Schedule of Contract
REVENUE - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Accounts receivable, net | ||
Accounts receivable, net | $ 1,463,974 | $ 1,305,479 |
Change in accounts receivable, net | $ 158,495 | |
Percentage change in accounts receivable, net | 12.00% | |
Contract assets | ||
Contract assets | $ 94,877 | 91,052 |
Change in contract assets | $ 3,825 | |
Percentage change in contract assets | 4.00% | |
Contract liabilities | ||
Contract liabilities | $ 701,411 | $ 667,703 |
Change in contract liabilities | $ 33,708 | |
Percentage change in contract liabilities | 5.00% |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue remainder payable acceptance period | 30 days | |
Decrease in contract assets, reclassified to accounts receivable | $ 37.8 | |
Revenue recognized in excess of amount billed to customer | 41.6 | |
Change in contract liabilities, revenue recognized | $ 303 | $ 314.8 |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue payment terms required payment percentage of total contract consideration within 30 To 60 days of shipment | 70.00% | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue payment terms required payment percentage of total contract consideration within 30 To 60 days of shipment | 90.00% |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 6,250 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 5.00% |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 15.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Other current assets: | ||
Derivative assets | $ 10,156 | $ 8,252 |
Liabilities | ||
Derivative liabilities | (4,348) | (2,807) |
Contingent consideration payable | (21,300) | |
Cash excluded from fair value measurement | 747,600 | 641,600 |
Time deposits excluded from fair value measurement | 250,600 | 210,600 |
Time deposits, cash equivalents excluded from fair value measurement | 71,300 | 101,700 |
Recurring | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 1,626,613 | 1,642,316 |
Other current assets: | ||
Derivative assets | 10,156 | 8,252 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 262,042 | 266,199 |
Total financial assets | 1,898,811 | 1,916,767 |
Liabilities | ||
Derivative liabilities | (4,348) | (2,807) |
Deferred payments | (4,625) | (4,550) |
Contingent consideration payable | (21,324) | (8,514) |
Total financial liabilities | (30,297) | (15,871) |
Recurring | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 690,579 | 691,375 |
Recurring | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 467,529 | 468,746 |
Recurring | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 70,892 | 70,228 |
Recurring | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 5,049 | 3,052 |
Recurring | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | 126,147 | 145,921 |
Recurring | U.S. Treasury securities | ||
Marketable securities: | ||
Marketable securities | 247,764 | 233,064 |
Recurring | Equity Securities | ||
Marketable securities: | ||
Marketable securities | 18,653 | 29,930 |
Recurring | Level 1 | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 1,077,194 | 1,042,351 |
Other current assets: | ||
Derivative assets | 0 | 0 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 199,933 | 200,925 |
Total financial assets | 1,277,127 | 1,243,276 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Deferred payments | 0 | 0 |
Contingent consideration payable | 0 | 0 |
Total financial liabilities | 0 | 0 |
Recurring | Level 1 | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 690,579 | 691,375 |
Recurring | Level 1 | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | 126,147 | 145,921 |
Recurring | Level 1 | U.S. Treasury securities | ||
Marketable securities: | ||
Marketable securities | 241,815 | 205,055 |
Recurring | Level 1 | Equity Securities | ||
Marketable securities: | ||
Marketable securities | 18,653 | 0 |
Recurring | Level 2 | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 549,419 | 599,965 |
Other current assets: | ||
Derivative assets | 10,156 | 8,252 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 62,109 | 65,274 |
Total financial assets | 621,684 | 673,491 |
Liabilities | ||
Derivative liabilities | (4,348) | (2,807) |
Deferred payments | 0 | 0 |
Contingent consideration payable | 0 | 0 |
Total financial liabilities | (4,348) | (2,807) |
Recurring | Level 2 | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Recurring | Level 2 | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 467,529 | 468,746 |
Recurring | Level 2 | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 70,892 | 70,228 |
Recurring | Level 2 | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 5,049 | 3,052 |
Recurring | Level 2 | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 2 | U.S. Treasury securities | ||
Marketable securities: | ||
Marketable securities | 5,949 | 28,009 |
Recurring | Level 2 | Equity Securities | ||
Marketable securities: | ||
Marketable securities | 0 | 29,930 |
Recurring | Level 3 | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 0 | 0 |
Other current assets: | ||
Derivative assets | 0 | 0 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 0 | 0 |
Total financial assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Deferred payments | (4,625) | (4,550) |
Contingent consideration payable | (21,324) | (8,514) |
Total financial liabilities | (25,949) | (13,064) |
Recurring | Level 3 | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Recurring | Level 3 | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | U.S. Treasury securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | Equity Securities | ||
Marketable securities: | ||
Marketable securities | $ 0 | $ 0 |
FINANCIAL STATEMENT COMPONENT_2
FINANCIAL STATEMENT COMPONENTS - Balance Sheet Components (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Accounts receivable, net: | |||
Accounts receivable, gross | $ 1,481,868 | $ 1,323,515 | |
Allowance for credit losses | (17,894) | (18,036) | |
Accounts receivable, net | 1,463,974 | 1,305,479 | |
Inventories: | |||
Customer service parts | 348,913 | 349,743 | |
Raw materials | 696,314 | 595,151 | |
Work-in-process | 426,855 | 453,432 | |
Finished goods | 243,257 | 177,054 | |
Inventories | 1,715,339 | 1,575,380 | |
Other current assets: | |||
Prepaid expenses | 112,592 | 76,649 | |
Contract assets | 94,877 | 91,052 | |
Deferred costs of revenues | 69,865 | 59,953 | |
Prepaid income and other taxes | 23,893 | 68,847 | |
Other current assets | 39,319 | 24,366 | |
Other current assets, total | 340,546 | 320,867 | |
Land, property and equipment, net: | |||
Land | 67,862 | 67,862 | |
Buildings and leasehold improvements | 463,865 | 458,605 | |
Machinery and equipment | 745,877 | 743,710 | |
Office furniture and fixtures | 32,029 | 32,856 | |
Construction-in-process | 215,038 | 182,320 | |
Land, property and equipment, gross | 1,524,671 | 1,485,353 | |
Less: accumulated depreciation | (826,124) | (822,326) | |
Land, property and equipment, net | 698,547 | 663,027 | |
Other non-current assets: | |||
Executive Deferred Savings Plan | 262,041 | 266,199 | |
Operating lease right of use assets | 99,616 | 102,883 | |
Other non-current assets | 77,056 | 75,823 | |
Other non-current assets, total | 438,713 | 444,905 | |
Other current liabilities: | |||
Customer credits and advances | 421,928 | 250,784 | |
Compensation and benefits | 421,677 | 305,445 | |
Executive Deferred Savings Plan | 264,740 | 268,028 | |
Other accrued expenses | 177,045 | 180,982 | |
Income taxes payable | 162,494 | 87,320 | |
Interest payable | $ 34,766 | $ 36,135 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, total | Other current liabilities, total | |
Operating lease liabilities | $ 32,946 | $ 32,322 | |
Other current liabilities, total | 1,515,596 | 1,161,016 | |
Other non-current liabilities: | |||
Income taxes payable | 314,623 | 333,866 | |
Pension liabilities | 86,817 | 87,602 | |
Operating lease liabilities | $ 65,940 | $ 70,739 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities, total | Other non-current liabilities, total | |
Other non-current liabilities | $ 153,201 | $ 139,083 | |
Other non-current liabilities, total | 620,581 | $ 631,290 | |
Selling, general and administrative | |||
Other non-current liabilities: | |||
Expense associated with changes in the EDSP Liability | (1,000) | $ 13,200 | |
Gain on deferred compensation plan assets | $ (1,100) | $ 13,300 |
FINANCIAL STATEMENT COMPONENT_3
FINANCIAL STATEMENT COMPONENTS - Accumulated Other Comprehensive Income (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Accumulated Other Comprehensive Income (Loss) | |
Ending balance | $ 3,860,930 |
Beginning balance | 3,377,554 |
Currency Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss) | |
Ending balance | (35,001) |
Beginning balance | (32,563) |
Unrealized Gains (Losses) on Available-for-Sale Securities | |
Accumulated Other Comprehensive Income (Loss) | |
Ending balance | 345 |
Beginning balance | 595 |
Unrealized Gains (Losses) on Derivatives | |
Accumulated Other Comprehensive Income (Loss) | |
Ending balance | (20,519) |
Beginning balance | (20,092) |
Unrealized Gains (Losses) on Defined Benefit Plans | |
Accumulated Other Comprehensive Income (Loss) | |
Ending balance | (22,869) |
Beginning balance | (23,497) |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | |
Ending balance | (78,044) |
Beginning balance | $ (75,557) |
FINANCIAL STATEMENT COMPONENT_4
FINANCIAL STATEMENT COMPONENTS - Effects on Net Income (Loss) of Amounts Reclassified from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) | ||
Revenues | $ 2,083,838 | $ 1,538,620 |
Costs of revenues and operating expenses | (1,265,038) | (1,012,231) |
Interest expense | (38,312) | (39,386) |
Net gains (losses) reclassified from AOCI | 1,068,417 | 420,567 |
Other expense (income), net | 14,140 | 3,197 |
Unrealized Gains (Losses) on Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) | ||
Reclassification adjustment from AOCI, net of tax | 400 | 300 |
Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts | ||
Accumulated Other Comprehensive Income (Loss) | ||
Revenues | 1,729 | (217) |
Costs of revenues and operating expenses | (232) | 550 |
Interest expense | (279) | (279) |
Net gains (losses) reclassified from AOCI | 1,218 | 54 |
Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) on available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Other expense (income), net | $ 1 | $ 101 |
MARKETABLE SECURITIES - Amortiz
MARKETABLE SECURITIES - Amortized Cost and Fair Value (Details) | Sep. 30, 2021USD ($)investment | Jun. 30, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Total | $ 1,099,367,000 | |
Available-for-sale securities, fair value | 1,115,249,000 | |
Money market funds and other | 690,579,000 | $ 691,375,000 |
Equity securities, amortized cost | 3,211,000 | 3,211,000 |
Equity securities, gross unrealized gains | 15,442,000 | 26,719,000 |
Equity securities, gross unrealized losses | 0 | 0 |
Equity securities, fair value | 18,653,000 | 29,930,000 |
Subtotal, amortized cost | 1,610,731,000 | 1,614,840,000 |
Subtotal, gross unrealized gains | 16,181,000 | 27,810,000 |
Subtotal, gross unrealized losses | (299,000) | (334,000) |
Subtotal, fair value | 1,626,613,000 | 1,642,316,000 |
Add: Time deposits | 250,553,000 | 210,636,000 |
Less: Cash equivalents | 761,917,000 | 793,040,000 |
Marketable securities, amortized cost | 1,099,367,000 | 1,032,436,000 |
Marketable securities, fair value | $ 1,115,249,000 | 1,059,912,000 |
Number of investments in an unrealized loss position | investment | 197 | |
Investments in continuous loss position, 12 months or more | $ 0 | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 467,126,000 | 468,192,000 |
Available-for-sale securities, gross unrealized gains | 516,000 | 689,000 |
Available-for-sale securities, gross unrealized losses | (113,000) | (135,000) |
Available-for-sale securities, fair value | 467,529,000 | 468,746,000 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 70,830,000 | 70,155,000 |
Available-for-sale securities, gross unrealized gains | 83,000 | 106,000 |
Available-for-sale securities, gross unrealized losses | (21,000) | (33,000) |
Available-for-sale securities, fair value | 70,892,000 | 70,228,000 |
Sovereign securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 5,044,000 | 3,045,000 |
Available-for-sale securities, gross unrealized gains | 7,000 | 7,000 |
Available-for-sale securities, gross unrealized losses | (2,000) | 0 |
Available-for-sale securities, fair value | 5,049,000 | 3,052,000 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 126,088,000 | 145,810,000 |
Available-for-sale securities, gross unrealized gains | 103,000 | 160,000 |
Available-for-sale securities, gross unrealized losses | (44,000) | (49,000) |
Available-for-sale securities, fair value | 126,147,000 | 145,921,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 247,853,000 | 233,052,000 |
Available-for-sale securities, gross unrealized gains | 30,000 | 129,000 |
Available-for-sale securities, gross unrealized losses | (119,000) | (117,000) |
Available-for-sale securities, fair value | $ 247,764,000 | $ 233,064,000 |
Corporate and Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment portfolio, maximum maturity term | 3 years |
MARKETABLE SECURITIES - Continu
MARKETABLE SECURITIES - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 371,893 | $ 339,282 |
Gross Unrealized Losses | (299) | (334) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 142,915 | 161,012 |
Gross Unrealized Losses | (113) | (135) |
Sovereign securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2,002 | |
Gross Unrealized Losses | (2) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 16,727 | 21,605 |
Gross Unrealized Losses | (21) | (33) |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 37,410 | 38,904 |
Gross Unrealized Losses | (44) | (49) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 172,839 | 117,761 |
Gross Unrealized Losses | $ (119) | $ (117) |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Amortized Cost | |
Due within one year | $ 547,941 |
Due after one year through three years | 551,426 |
Total | 1,099,367 |
Fair Value | |
Due within one year | 563,772 |
Due after one year through three years | 551,477 |
Total | $ 1,115,249 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Sep. 17, 2021 | Jul. 01, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
Business Acquisition | ||||
Contingent consideration | $ 21,300 | |||
Goodwill | 2,041,338 | $ 2,011,172 | ||
Acquired goodwill | 30,164 | |||
Contingent consideration liability, current | 1,500 | |||
Contingent consideration liability, non-current | 19,800 | |||
Wafer Inspection and Patterning | ||||
Business Acquisition | ||||
Goodwill | 447,026 | $ 416,860 | ||
Acquired goodwill | 30,164 | |||
September 2021 acquisition | ||||
Business Acquisition | ||||
Total purchase consideration | $ 460,000 | |||
July 2021 acquisition | ||||
Business Acquisition | ||||
Total purchase consideration | $ 80,300 | |||
Additional consideration (up to) | 35,000 | |||
Contingent consideration | $ 12,800 | |||
Identifiable intangible assets | 31,700 | |||
Net tangible assets | 26,400 | |||
Deferred tax liabilities | 8,000 | |||
Goodwill | 30,200 | |||
July 2021 acquisition | Wafer Inspection and Patterning | ||||
Business Acquisition | ||||
Acquired goodwill | $ 30,200 |
GOODWILL AND PURCHASED INTANG_3
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)segment | Jun. 30, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Number of reportable segments | segment | 4 | |
Number of operating segments | segment | 6 | |
Goodwill impairment | $ | $ 0 | |
Impairment of intangible assets | $ | $ 0 |
GOODWILL AND PURCHASED INTANG_4
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Schedule of Goodwill (Details) | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,011,172,000 |
Acquired goodwill | 30,164,000 |
Foreign currency adjustments | 2,000 |
Ending balance | 2,041,338,000 |
Goodwill | 2,041,338,000 |
Wafer Inspection and Patterning | |
Goodwill [Roll Forward] | |
Beginning balance | 416,860,000 |
Acquired goodwill | 30,164,000 |
Foreign currency adjustments | 2,000 |
Ending balance | 447,026,000 |
Goodwill | 447,026,000 |
Global Service and Support (“GSS”) | |
Goodwill [Roll Forward] | |
Beginning balance | 25,908,000 |
Acquired goodwill | 0 |
Foreign currency adjustments | 0 |
Ending balance | 25,908,000 |
Goodwill | 25,908,000 |
Specialty Semiconductor Process | |
Goodwill [Roll Forward] | |
Beginning balance | 681,858,000 |
Acquired goodwill | 0 |
Foreign currency adjustments | 0 |
Ending balance | 681,858,000 |
Goodwill | 681,858,000 |
PCB and Display | |
Goodwill [Roll Forward] | |
Beginning balance | 872,971,000 |
Acquired goodwill | 0 |
Foreign currency adjustments | 0 |
Ending balance | 872,971,000 |
Goodwill | 872,971,000 |
Component Inspection | |
Goodwill [Roll Forward] | |
Beginning balance | 13,575,000 |
Acquired goodwill | 0 |
Foreign currency adjustments | 0 |
Ending balance | 13,575,000 |
Goodwill | 13,575,000 |
Others | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Ending balance | 0 |
Goodwill | $ 0 |
GOODWILL AND PURCHASED INTANG_5
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | $ 1,883,327 | $ 1,856,215 |
Intangible assets, gross | 1,950,983 | 1,919,471 |
Intangible assets subject to amortization, accumulated amortization | 787,386 | 734,060 |
Accumulated Amortization and Impairment | 793,448 | 734,160 |
Intangible assets subject to amortization, net | 1,095,941 | 1,122,155 |
Purchased intangible assets, net | 1,157,535 | 1,185,311 |
In-process research and development | ||
Purchased Intangible Assets | ||
Indefinite-lived intangible assets, gross | 67,656 | 63,256 |
Indefinite-lived intangible assets, other accumulated adjustments | 6,062 | 100 |
Indefinite-lived intangible assets, net | 61,594 | 63,156 |
Existing technology | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 1,400,191 | 1,382,612 |
Intangible assets subject to amortization, accumulated amortization | 540,125 | 499,219 |
Intangible assets subject to amortization, net | 860,066 | 883,393 |
Customer relationships | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 313,317 | 305,817 |
Intangible assets subject to amortization, accumulated amortization | 139,919 | 131,386 |
Intangible assets subject to amortization, net | 173,398 | 174,431 |
Trade name / Trademark | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 117,983 | 117,383 |
Intangible assets subject to amortization, accumulated amortization | 57,100 | 53,493 |
Intangible assets subject to amortization, net | 60,883 | 63,890 |
Backlog and other | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 51,836 | 50,403 |
Intangible assets subject to amortization, accumulated amortization | 50,242 | 49,962 |
Intangible assets subject to amortization, net | $ 1,594 | $ 441 |
Minimum | Existing technology | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 4 years | |
Minimum | Customer relationships | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 4 years | |
Minimum | Trade name / Trademark | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 4 years | |
Minimum | Backlog and other | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 1 year | |
Maximum | Existing technology | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 8 years | |
Maximum | Customer relationships | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 9 years | |
Maximum | Trade name / Trademark | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 7 years | |
Maximum | Backlog and other | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 9 years |
GOODWILL AND PURCHASED INTANG_6
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Amortization Expense for Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Purchased Intangible Assets | ||
Amortization of intangible assets | $ 53,544 | $ 50,500 |
Costs of revenues | ||
Purchased Intangible Assets | ||
Amortization of intangible assets | 41,124 | 37,040 |
Selling, general and administrative | ||
Purchased Intangible Assets | ||
Amortization of intangible assets | 12,389 | 13,429 |
Research and development | ||
Purchased Intangible Assets | ||
Amortization of intangible assets | $ 31 | $ 31 |
GOODWILL AND PURCHASED INTANG_7
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Remaing Estimated Amortization Expense | ||
2022 (remaining nine months) | $ 160,633 | |
2023 | 212,609 | |
2024 | 209,615 | |
2025 | 197,396 | |
2026 | 182,071 | |
2026 and thereafter | 133,617 | |
Intangible assets subject to amortization, net | $ 1,095,941 | $ 1,122,155 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Debt Instrument | ||
Total | $ 3,470,000 | $ 3,470,000 |
Unamortized discount/premium, net | (7,023) | (7,168) |
Unamortized debt issuance costs | (19,541) | (20,065) |
Total | 3,443,436 | 3,442,767 |
Short-term debt | 20,000 | 20,000 |
Long-term debt | $ 3,423,436 | 3,422,767 |
Fixed-rate 4.650% Senior Notes due on November 1, 2024 | Senior notes | ||
Debt Instrument | ||
Stated interest rate | 4.65% | |
Debt outstanding | $ 1,250,000 | $ 1,250,000 |
Effective interest rate | 4.682% | 4.682% |
Fixed-rate 5.650% Senior Notes due on November 1, 2034 | Senior notes | ||
Debt Instrument | ||
Stated interest rate | 5.65% | |
Debt outstanding | $ 250,000 | $ 250,000 |
Effective interest rate | 5.67% | 5.67% |
Fixed-rate 4.100% Senior Notes due on March 15, 2029 | Senior notes | ||
Debt Instrument | ||
Stated interest rate | 4.10% | |
Debt outstanding | $ 800,000 | $ 800,000 |
Effective interest rate | 4.159% | 4.159% |
Fixed-rate 5.000% Senior Notes due on March 15, 2049 | Senior notes | ||
Debt Instrument | ||
Stated interest rate | 5.00% | |
Debt outstanding | $ 400,000 | $ 400,000 |
Effective interest rate | 5.047% | 5.047% |
Fixed-rate 3.300% Senior Notes due on March 1, 2050 | Senior notes | ||
Debt Instrument | ||
Stated interest rate | 3.30% | |
Debt outstanding | $ 750,000 | $ 750,000 |
Effective interest rate | 3.302% | 3.302% |
Fixed-rate 3.590% Note Payable due on February 20, 2022 | Notes Payable | ||
Debt Instrument | ||
Stated interest rate | 3.59% | |
Effective interest rate | 2.30% | 2.30% |
Note payable | $ 20,000 | $ 20,000 |
DEBT - Future Principal Payment
DEBT - Future Principal Payments (Details) $ in Millions | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Debt principal payments due in fiscal year 2022 | $ 20 |
Debt principal payments due in fiscal year 2025 | 1,250 |
Debt principal payments due after fiscal year 2026 | $ 2,200 |
DEBT - Senior Notes and Debt Re
DEBT - Senior Notes and Debt Redemption (Details) - USD ($) | 3 Months Ended | ||||||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Jun. 30, 2021 | Feb. 29, 2020 | Mar. 31, 2019 | Nov. 30, 2014 | |
Debt Instrument | |||||||||
Repayment of debt | $ 300,000,000 | $ 50,000,000 | |||||||
Senior notes | |||||||||
Debt Instrument | |||||||||
Redemption price | 101.00% | ||||||||
Fair value disclosure | $ 3,950,000,000 | $ 3,980,000,000 | |||||||
Senior notes | 2020 Senior Notes | |||||||||
Debt Instrument | |||||||||
Debt face amount | $ 750,000,000 | ||||||||
Senior notes | 2019 Senior Notes | |||||||||
Debt Instrument | |||||||||
Debt face amount | $ 1,200,000,000 | ||||||||
Senior notes | 2014 Senior Notes | |||||||||
Debt Instrument | |||||||||
Debt face amount | $ 2,500,000,000 | ||||||||
Repayment of debt | $ 500,000,000 | $ 250,000,000 | $ 250,000,000 | ||||||
Debt outstanding | $ 1,500,000,000 |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2017quarter | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Debt Instrument | |||
Proceeds from revolving credit facility | $ 300,000,000 | $ 0 | |
Line of credit | Revolving credit facility | |||
Debt Instrument | |||
Maximum borrowing capacity | 1,000,000,000 | ||
Proceeds from revolving credit facility | 300,000,000 | ||
Debt outstanding | $ 0 | ||
Commitment fee percentage (in bps) | 0.10% | ||
Covenant compliance, number of consecutive quarters | quarter | 4 | ||
Covenant compliance, minimum interest expense coverage ratio | 3.50 | ||
Maximum leverage ratio | 3 | 3 | |
Maximum leverage ratio under a material acquisition or series of material acquisitions | 4 | ||
Line of credit | Revolving credit facility | Minimum | |||
Debt Instrument | |||
Commitment fee percentage (in bps) | 0.10% | ||
Line of credit | Revolving credit facility | Maximum | |||
Debt Instrument | |||
Commitment fee percentage (in bps) | 0.25% | ||
Line of credit | Revolving credit facility | Alternative base rate | Minimum | |||
Debt Instrument | |||
Basis spread on variable rate (in bps) | 0.00% | ||
Line of credit | Revolving credit facility | Alternative base rate | Maximum | |||
Debt Instrument | |||
Basis spread on variable rate (in bps) | 0.75% | ||
Line of credit | Revolving credit facility | LIBOR | |||
Debt Instrument | |||
Basis spread on variable rate (in bps) | 1.00% | ||
Line of credit | Revolving credit facility | LIBOR | Minimum | |||
Debt Instrument | |||
Basis spread on variable rate (in bps) | 1.00% | ||
Line of credit | Revolving credit facility | LIBOR | Maximum | |||
Debt Instrument | |||
Basis spread on variable rate (in bps) | 1.75% |
DEBT - Notes Payable (Details)
DEBT - Notes Payable (Details) - Notes Payable - USD ($) | Feb. 20, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument | |||
Debt face amount | $ 40,000,000 | ||
Repayments of debt | $ 20,000,000 | ||
Debt instrument premium | $ 300,000 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Operating Leased Assets [Line Items] | |||
Total lease expense | $ 9.1 | $ 9.6 | |
Operating leases, weighted average remaining lease term | 4 years 4 months 24 days | 4 years 7 months 6 days | |
Operating leases, weighted average discount rate | 1.60% | 1.64% | |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease terms | 16 years |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 9,485 | $ 9,370 |
Right of use assets obtained in exchange for new operating lease liabilities | $ 5,955 | $ 6,844 |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Leases, After Adoption of 842 | |
2022 (remaining nine months) | $ 26,328 |
2023 | 26,059 |
2024 | 16,672 |
2025 | 12,161 |
2026 | 9,156 |
2027 and thereafter | 12,644 |
Total lease payments | 103,020 |
Less imputed interest | (4,134) |
Total | $ 98,886 |
EQUITY, LONG-TERM INCENTIVE C_3
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Equity Incentive Program and Assumed Equity Plans (Details) - shares | Sep. 30, 2021 | Jun. 30, 2021 |
2004 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of shares available for grant (in shares) | 9,884,000 | 10,253,000 |
Assumed Equity Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of shares available for grant (in shares) | 74,535 |
EQUITY, LONG-TERM INCENTIVE C_4
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Equity Incentive Plans General Information (Details) shares in Thousands | 3 Months Ended |
Sep. 30, 2021shares | |
Restricted stock unit, Performance-based and Service-based | Senior Management | |
Total Shares Available for Grant under the Company's equity incentive plans: | |
Ending balance (in shares) | 200 |
Number of shares available for grant (in shares) | 200 |
2004 Plan | |
Total Shares Available for Grant under the Company's equity incentive plans: | |
Beginning balance (in shares) | 10,253 |
Restricted stock units granted (in shares) | (436) |
Restricted stock units granted adjustment (in shares) | 39 |
Restricted stock units canceled (in shares) | 28 |
Ending balance (in shares) | 9,884 |
Impact on share reserve multiplier | 2 |
Number of shares available for grant (in shares) | 9,884 |
2004 Plan | Restricted stock unit, Performance-based and Service-based | |
Total Shares Available for Grant under the Company's equity incentive plans: | |
Ending balance (in shares) | 100 |
Number of shares available for grant (in shares) | 100 |
EQUITY, LONG-TERM INCENTIVE C_5
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Stock-based compensation expense | |||
Stock-based compensation expense | $ 25,216 | $ 26,992 | |
Stock-based compensation capitalized as inventory | 7,100 | $ 8,000 | |
Costs of revenues | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 3,838 | 3,667 | |
Research and development | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 4,694 | 5,471 | |
Selling, general and administrative | |||
Stock-based compensation expense | |||
Stock-based compensation expense | $ 16,684 | $ 17,854 |
EQUITY, LONG-TERM INCENTIVE C_6
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Restricted Stock Unit Activities (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Sep. 30, 2021USD ($)Installment$ / sharesshares | Sep. 30, 2020$ / shares | Jun. 30, 2021shares | |
Restricted stock units | |||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Restricted stock units granted, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 353.71 | $ 201.95 | |
Unrecognized stock-based compensation balance | $ | $ 194.2 | ||
Estimated weighted-average amortization period | 1 year 6 months | ||
Intrinsic value | $ | $ 535.1 | ||
Restricted stock unit, Performance-based and Service-based | |||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Service and performance-based, number of equal vesting installments | Installment | 2 | ||
Restricted stock unit, Service-based | Minimum | |||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Share-based vesting period | 2 years | ||
Restricted stock unit, Service-based | Maximum | |||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Share-based vesting period | 4 years | ||
Restricted Stock Unit, Market-based and Service-based | |||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Service and performance-based, number of equal vesting installments | Installment | 3 | ||
2004 Plan | |||
Restricted Stock Units Activity Rollforward | |||
Granted (in shares) | 436 | ||
Granted adjustments (in shares) | 39 | ||
Forfeited (in shares) | (28) | ||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Number of shares available for grant (in shares) | 9,884 | 10,253 | |
2004 Plan | Restricted stock units | |||
Restricted Stock Units Activity Rollforward | |||
Outstanding restricted stock units, beginning (in shares) | 1,710 | ||
Granted (in shares) | 218 | ||
Granted adjustments (in shares) | (19) | ||
Vested and released (in shares) | (160) | ||
Withheld for taxes (in shares) | (133) | ||
Forfeited (in shares) | (16) | ||
Outstanding restricted stock units, ending (in shares) | 1,600 | ||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Outstanding restricted stock units as of June 30, 2020, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 133.76 | ||
Restricted stock units granted, weighted-average grant date fair value (in dollars per share) | $ / shares | 353.71 | ||
Restricted stock units granted adjustments, weighted-average grant date fair value (in dollars per share) | $ / shares | 118.47 | ||
Restricted stock units vested and released, weighted-average grant date fair value (in dollars per share) | $ / shares | 125.29 | ||
Restricted stock units withheld for taxes, weighted-average grant date fair value (in dollars per share) | $ / shares | 125.29 | ||
Restricted stock units forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares | 105.45 | ||
Outstanding restricted stock units as of September 30, 2020, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 165.75 | ||
2004 Plan | Restricted stock unit, Performance-based and Service-based | |||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||
Number of shares available for grant (in shares) | 100 |
EQUITY, LONG-TERM INCENTIVE C_7
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Weighted-Average Grant Date Fair Value (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Weighted-average grant date fair value per unit (in dollars per share) | $ 353.71 | $ 201.95 |
Grant date fair value of vested RSUs | $ 36,740 | $ 27,302 |
Tax benefits realized by us in connection with vested and released RSUs | $ 9,008 | $ 6,737 |
EQUITY, LONG-TERM INCENTIVE C_8
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Cash-Based Long-Term Incentive Compensation (Details) - Cash long-term incentive plan $ in Millions | 3 Months Ended | |
Sep. 30, 2021USD ($)Installment | Sep. 30, 2020USD ($) | |
Cash Long-Term Incentive Plan | ||
Cash-based long-term incentive plan, authorized amount | $ 6.6 | $ 3.5 |
Cash long-term incentive plan, compensation expense | 21.8 | $ 19.4 |
Cash long-term incentive plan, unrecognized compensation balance | $ 203.9 | |
Minimum | ||
Cash Long-Term Incentive Plan | ||
Cash long-term incentive plan, equal vesting installments | Installment | 3 | |
Cash long-term incentive plan, vesting period | 3 years | |
Cash long-term incentive plan, percentage of equal vesting installments | 33.33% | |
Maximum | ||
Cash Long-Term Incentive Plan | ||
Cash long-term incentive plan, equal vesting installments | Installment | 4 | |
Cash long-term incentive plan, vesting period | 4 years | |
Cash long-term incentive plan, percentage of equal vesting installments | 25.00% |
EQUITY, LONG-TERM INCENTIVE C_9
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
ESPP, offering period | 6 months | |
Employee Stock Purchase Plan Additional Information | ||
ESPP maximum annual share replenishment (in shares) | 2 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
ESPP maximum employee subscription rate | 15.00% | |
ESPP, discount from market price, lesser of commencement of offering period or purchase date | 85.00% | |
ESPP, Fair Value Assumptions and Methodology | ||
Expected stock price volatility | 34.90% | 51.90% |
Risk-free interest rate | 0.10% | 0.70% |
Dividend yield | 1.40% | 1.90% |
Expected life (in years) | 6 months | 6 months |
Employee Stock Purchase Plan Additional Information | ||
Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP | $ 967 | $ 892 |
Weighted-average fair value per share based on Black-Scholes model (in dollars per share) | $ 71.82 | $ 52.23 |
Number of shares available for grant (in shares) | 2.2 |
EQUITY, LONG-TERM INCENTIVE _10
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 05, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 |
Dividends Payable | ||||
Cash dividends declared (in dollars per share) | $ 1.05 | $ 1.05 | $ 0.90 | |
Restricted stock unit, Performance-based and Service-based | ||||
Dividends Payable | ||||
Dividends payable | $ 9.1 | $ 10.3 | ||
Additional paid-in capital | ||||
Dividends Payable | ||||
Payment of dividends | $ 162.8 | $ 141.2 |
EQUITY, LONG-TERM INCENTIVE _11
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Non-controlling Interest (Details) | Sep. 30, 2021 |
Orbograph | |
Noncontrolling Interest [Line Items] | |
Non-controlling interest, ownership | 94.00% |
OLTS | |
Noncontrolling Interest [Line Items] | |
Non-controlling interest, ownership | 97.00% |
STOCK REPURCHASE PROGRAM (Detai
STOCK REPURCHASE PROGRAM (Details) - USD ($) shares in Thousands | 3 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jul. 29, 2021 | Jun. 30, 2021 | |
Equity, Class of Treasury Stock | ||||
Remaining shares authorized to be repurchased, amount | $ 1,690,000,000 | $ 93,000,000 | ||
Shares authorized to be repurchased, amount | $ 2,000,000,000 | |||
Total cost of repurchases | $ 399,677,000 | $ 193,897,000 | ||
Common Stock and Capital in Excess of Par Value, Shares | ||||
Equity, Class of Treasury Stock | ||||
Repurchase of common stock (in shares) | 1,190 | 1,027 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||
Net income attributable to KLA | $ 1,068,417 | $ 420,567 |
Denominator: | ||
Weighted-average shares - basic, excluding unvested restricted stock units (in shares) | 152,330 | 155,281 |
Effect of dilutive restricted stock units and options (in shares) | 1,080 | 1,161 |
Weighted-average shares - diluted (in shares) | 153,410 | 156,442 |
Basic net income per share attributable to KLA (in dollars per share) | $ 7.01 | $ 2.71 |
Diluted net income per share attributable to KLA (in dollars per share) | $ 6.96 | $ 2.69 |
Anti-dilutive securities excluded from the computation of diluted net income per share (in shares) | 135 | 169 |
INCOME TAXES - Details of Incom
INCOME TAXES - Details of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 766,348 | $ 483,806 |
Provision (benefit) for income taxes | $ (302,137) | $ 63,664 |
Effective tax rate | (39.40%) | 13.20% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) $ in Thousands, ₪ in Millions | 1 Months Ended | 3 Months Ended | 38 Months Ended | ||||||
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020ILS (₪) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020ILS (₪) | Aug. 31, 2018USD ($) | Aug. 31, 2018ILS (₪) | |
Income Tax Examination | |||||||||
Deferred tax benefits | $ (427,970) | $ (14,967) | |||||||
Foreign Tax Authority | |||||||||
Income Tax Examination | |||||||||
Deferred tax benefits | $ (395,000) | ||||||||
Tax deductible amortization period | 15 years | ||||||||
Foreign Tax Authority | ITA | |||||||||
Income Tax Examination | |||||||||
Income tax examination, estimate of possible loss | $ 68,000 | ₪ 227 | $ 66,000 | ||||||
Penalties and interest accrued | $ 73,000 | ₪ 257 | |||||||
Foreign Tax Authority | ITA | Orbotech | |||||||||
Income Tax Examination | |||||||||
Income tax examination, estimate of possible loss | ₪ | ₪ 229 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021USD ($)Installment | Sep. 30, 2020USD ($) | |
Receivables Sold Under Factoring Agreements and Proceeds from Sales of LC | ||
Receivables sold under factoring agreements | $ 67,118 | $ 88,645 |
Proceeds from sales of LC | 21,673 | $ 19,130 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Purchase commitments | $ 1,900,000 | |
Purchase commitment, period | 12 months | |
Cash-based long-term incentive plan, committed amount | $ 245,700 | |
Guarantee arrangements to fund customs guarantees for VAT and other operating requirements | 79,100 | |
Outstanding guarantee arrangements to fund customs authorities for VAT and other operating requirements | $ 66,500 | |
Minimum | Cash long-term incentive plan | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Cash long-term incentive plan, equal vesting installments | Installment | 3 | |
Cash long-term incentive plan, percentage of equal vesting installments | 33.33% | |
Cash long-term incentive plan, vesting period | 3 years | |
Maximum | Cash long-term incentive plan | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Cash long-term incentive plan, equal vesting installments | Installment | 4 | |
Cash long-term incentive plan, percentage of equal vesting installments | 25.00% | |
Cash long-term incentive plan, vesting period | 4 years |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2021USD ($)derivativeInstrument | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jan. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2015USD ($) | |
Derivative | ||||||
Reclassification adjustments increased interest expense on a net basis | $ 1,218 | $ 54 | ||||
Treasury lock | ||||||
Derivative | ||||||
Reclassification adjustments increased interest expense on a net basis | $ 300 | $ 300 | ||||
Number of derivative instruments held | derivativeInstrument | 3 | |||||
Derivatives designated as hedging instruments | Cash Flow Hedging | 2020 Rate Lock Agreements | ||||||
Derivative | ||||||
Derivative, notional amount | $ 350,000 | |||||
Cash flow hedges derivative at fair value | $ (21,500) | |||||
Derivatives designated as hedging instruments | Cash Flow Hedging | Treasury lock | ||||||
Derivative | ||||||
Cash flow hedges derivative at fair value | $ (13,600) | $ 7,500 | ||||
Unamortized portion of the fair value of derivative contracts | $ 28,700 | |||||
Maximum | Derivatives designated as hedging instruments | Cash Flow Hedging | ||||||
Derivative | ||||||
Term of contract | 18 months |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Gains (Losses) on Derivatives in Cash Flow Hedging Relationships Recognized in OCI (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative | ||
Amounts included in the assessment of effectiveness | $ 852,000 | $ (918,000) |
Gains (losses) on derivatives in net investment hedging recognized in OCI | 650,000 | 0 |
Foreign exchange contracts | ||
Derivative | ||
Amounts included in the assessment of effectiveness | 853,000 | (872,000) |
Amounts excluded from the assessment of effectiveness | (1,000) | (46,000) |
Foreign exchange contracts | Net investment hedging | ||
Derivative | ||
Amounts excluded from the assessment of effectiveness | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Locations and Amounts of Designated and Non-Designated Derivative's Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments | ||
Revenues | $ 2,083,838 | $ 1,538,620 |
Costs of revenues and operating expenses | 1,265,038 | 1,012,231 |
Interest expense | 38,312 | 39,386 |
Other expense (income), net | 14,140 | 3,197 |
Amount of gains (losses) reclassified from AOCI to earnings | 1,218 | 54 |
Rate lock contracts | Revenues | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 0 | 0 |
Rate lock contracts | Costs of Revenues and Operating Expenses | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 0 | 0 |
Rate lock contracts | Interest Expense | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | (279) | (279) |
Rate lock contracts | Other Expense (Income), Net | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 0 | 0 |
Foreign exchange contracts | Revenues | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 1,843 | (90) |
Amount excluded from the assessment of effectiveness recognized in earnings | (114) | (127) |
Amount of gains (losses) recognized in earnings | 0 | 0 |
Foreign exchange contracts | Costs of Revenues and Operating Expenses | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | (232) | 550 |
Amount excluded from the assessment of effectiveness recognized in earnings | 0 | 0 |
Amount of gains (losses) recognized in earnings | 0 | 0 |
Foreign exchange contracts | Interest Expense | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 0 | 0 |
Amount excluded from the assessment of effectiveness recognized in earnings | 0 | 0 |
Amount of gains (losses) recognized in earnings | 0 | 0 |
Foreign exchange contracts | Other Expense (Income), Net | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 0 | 0 |
Amount excluded from the assessment of effectiveness recognized in earnings | 657 | 0 |
Amount of gains (losses) recognized in earnings | $ 1,069 | $ (5,598) |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Notional Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Derivative | ||
Remaining maturity | 7 months | 7 months |
Derivatives designated as hedging instruments | Purchase | Other foreign currency hedge contracts | ||
Derivative | ||
Derivative, notional amount | $ 274,334 | $ 264,292 |
Derivatives designated as hedging instruments | Purchase | Cash Flow Hedging | Foreign exchange contracts | ||
Derivative | ||
Derivative, notional amount | 11,456 | 12,550 |
Derivatives designated as hedging instruments | Sell | Other foreign currency hedge contracts | ||
Derivative | ||
Derivative, notional amount | 248,813 | 278,635 |
Derivatives designated as hedging instruments | Sell | Cash Flow Hedging | Foreign exchange contracts | ||
Derivative | ||
Derivative, notional amount | 129,603 | 134,845 |
Derivatives designated as hedging instruments | Sell | Net Investment Hedging | Foreign exchange contracts | ||
Derivative | ||
Derivative, notional amount | $ 66,848 | $ 66,848 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | $ 10,156 | $ 8,252 |
Liability derivatives fair value | 4,348 | 2,807 |
Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 10,156 | 8,252 |
Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | (4,348) | 2,807 |
Derivatives designated as hedging instruments | Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 4,104 | 3,940 |
Derivatives designated as hedging instruments | Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | (346) | 272 |
Derivatives not designated as hedging instruments | Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 6,052 | 4,312 |
Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | (4,002) | 2,535 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 4,104 | 3,940 |
Foreign exchange contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | (346) | 272 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 6,052 | 4,312 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | $ (4,002) | $ 2,535 |
DERIVATIVE INSTRUMENTS AND HE_8
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Changes of OCI, Before Taxes, Related to Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 3,377,554 | |
Ending balance | 3,860,930 | |
AOCI, derivative | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (25,830) | $ (29,602) |
Amount reclassified to earnings as net (gains) losses | (1,218) | (54) |
Net change in unrealized gains (losses) | 1,502 | (918) |
Ending balance | $ (25,546) | $ (30,574) |
DERIVATIVE INSTRUMENTS AND HE_9
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Derivatives - Assets | ||
Derivative - Assets, Gross Amounts of Derivatives | $ 10,156 | $ 8,252 |
Derivatives - Assets, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Derivatives - Assets, Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets | 10,156 | 8,252 |
Derivatives - Assets, Financial Instruments | (3,522) | (2,492) |
Derivatives - Assets, Cash Collateral Received | 0 | 0 |
Derivatives - Assets, Net Amount | 6,634 | 5,760 |
Derivatives - Liabilities | ||
Derivatives - Liabilities, Gross Amounts of Derivatives | (4,348) | (2,807) |
Derivatives - Liabilities, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Derivatives - Liabilities, Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets | (4,348) | (2,807) |
Derivatives - Liabilities, Financial Instruments | 3,522 | 2,492 |
Derivatives - Liabilities, Cash Collateral Received | 0 | 0 |
Derivatives - Liabilities, Net Amount | $ (826) | $ (315) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |||
Total revenues | $ 79 | $ 314 | |
Total purchases | 359 | $ 292 | |
Accounts receivables | $ 1,100 | $ 1,300 |
SEGMENT REPORTING AND GEOGRAP_3
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Additional Information (Details) - segment | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting and Geographic Information | ||
Number of reportable segments | 4 | |
Number of operating segments | 6 | |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Largest Customer | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 24.00% | 14.00% |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Second Largest Customer | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 12.00% | |
Semiconductor Process Control | ||
Segment Reporting and Geographic Information | ||
Number of operating segments | 2 | |
Specialty Semiconductor Process | ||
Segment Reporting and Geographic Information | ||
Number of operating segments | 1 | |
PCB, Display and Component Inspection | ||
Segment Reporting and Geographic Information | ||
Number of operating segments | 2 | |
Other Segment | ||
Segment Reporting and Geographic Information | ||
Number of operating segments | 1 |
SEGMENT REPORTING AND GEOGRAP_4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Summary of Results for Reportable Segments (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting and Geographic Information | ||
Number of reportable segments | segment | 4 | |
Revenues | $ 2,083,838 | $ 1,538,620 |
Operating segments | ||
Segment Reporting and Geographic Information | ||
Revenues | 2,083,920 | 1,538,225 |
Segment gross margin | 1,311,126 | 954,920 |
Operating segments | SPC: | ||
Segment Reporting and Geographic Information | ||
Revenues | 1,779,083 | 1,267,954 |
Segment gross margin | 1,161,929 | 814,810 |
Operating segments | Specialty Semiconductor Process | ||
Segment Reporting and Geographic Information | ||
Revenues | 102,029 | 88,954 |
Segment gross margin | 54,721 | 49,928 |
Operating segments | PCB, Display and Component Inspection | ||
Segment Reporting and Geographic Information | ||
Revenues | 202,808 | 181,177 |
Segment gross margin | 94,476 | 90,169 |
Operating segments | Other Segment | ||
Segment Reporting and Geographic Information | ||
Revenues | 0 | 140 |
Segment gross margin | $ 0 | $ 13 |
SEGMENT REPORTING AND GEOGRAP_5
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Reconciliation of Total Reportable Segments Revenue to Total Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 2,083,838 | $ 1,538,620 |
Operating segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 2,083,920 | 1,538,225 |
Corporate allocations and effects of foreign exchange rates | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ (82) | $ 395 |
SEGMENT REPORTING AND GEOGRAP_6
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Reconciliation of Total Segment Gross Margin to Total Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Acquisition-related charges, corporate allocations and effects of foreign exchange rates | $ 40,912 | $ 36,862 |
Research and development | 258,153 | 219,038 |
Selling, general and administrative | 193,261 | 172,631 |
Interest expense | 38,312 | 39,386 |
Other expense (income), net | 14,140 | 3,197 |
Income before income taxes | 766,348 | 483,806 |
Operating segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segment gross margin | $ 1,311,126 | $ 954,920 |
SEGMENT REPORTING AND GEOGRAP_7
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Schedule of Revenue from External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting and Geographic Information | ||
Revenues | $ 2,083,838 | $ 1,538,620 |
Korea | ||
Segment Reporting and Geographic Information | ||
Revenues | 239,183 | 189,518 |
Taiwan | ||
Segment Reporting and Geographic Information | ||
Revenues | 627,084 | 369,100 |
China | ||
Segment Reporting and Geographic Information | ||
Revenues | 685,156 | 486,089 |
North America | ||
Segment Reporting and Geographic Information | ||
Revenues | 177,740 | 170,176 |
Japan | ||
Segment Reporting and Geographic Information | ||
Revenues | 175,167 | 164,419 |
Europe and Israel | ||
Segment Reporting and Geographic Information | ||
Revenues | 87,440 | 83,117 |
Rest of Asia | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 92,068 | $ 76,201 |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 100.00% | 100.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Korea | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 12.00% | 12.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Taiwan | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 30.00% | 24.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | China | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 33.00% | 32.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | North America | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 9.00% | 11.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Japan | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 8.00% | 11.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Europe and Israel | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 4.00% | 5.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Rest of Asia | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 4.00% | 5.00% |
SEGMENT REPORTING AND GEOGRAP_8
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from External Customer | ||
Revenues | $ 2,083,838 | $ 1,538,620 |
Wafer Inspection | ||
Revenue from External Customer | ||
Revenues | 887,512 | 519,551 |
Patterning | ||
Revenue from External Customer | ||
Revenues | 439,591 | 370,932 |
Specialty Semiconductor Process | ||
Revenue from External Customer | ||
Revenues | 93,120 | 74,027 |
PCB, Display and Component Inspection | ||
Revenue from External Customer | ||
Revenues | 137,887 | 120,626 |
Services | ||
Revenue from External Customer | ||
Revenues | 453,950 | 393,125 |
Other | ||
Revenue from External Customer | ||
Revenues | $ 71,778 | $ 60,359 |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 100.00% | 100.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 100.00% | 100.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Wafer Inspection | ||
Revenue from External Customer | ||
Concentration risk, percentage | 43.00% | 34.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Patterning | ||
Revenue from External Customer | ||
Concentration risk, percentage | 21.00% | 24.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Specialty Semiconductor Process | ||
Revenue from External Customer | ||
Concentration risk, percentage | 4.00% | 5.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | PCB, Display and Component Inspection | ||
Revenue from External Customer | ||
Concentration risk, percentage | 7.00% | 8.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Services | ||
Revenue from External Customer | ||
Concentration risk, percentage | 22.00% | 26.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Other | ||
Revenue from External Customer | ||
Concentration risk, percentage | 3.00% | 3.00% |
SEGMENT REPORTING AND GEOGRAP_9
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Land, Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | $ 698,547 | $ 663,027 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 476,809 | 447,359 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 81,160 | 76,882 |
Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 56,153 | 56,895 |
Israel | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 60,064 | 57,403 |
Rest of Asia | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | $ 24,361 | $ 24,488 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 0.5 | $ 3.5 | |
Restructuring reserve | $ 3.4 | $ 3.3 |
Uncategorized Items - klac-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |