Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2023 | Oct. 16, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.001 par value per share | |
Trading Symbol | KLAC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 135,932,316 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000319201 | |
Current Fiscal Year End Date | --06-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,711,570 | $ 1,927,865 |
Marketable securities | 1,637,751 | 1,315,294 |
Accounts receivable, net | 1,630,746 | 1,753,361 |
Inventories | 3,007,705 | 2,876,784 |
Other current assets | 443,019 | 498,728 |
Total current assets | 8,430,791 | 8,372,032 |
Land, property and equipment, net | 1,059,925 | 1,031,841 |
Goodwill | 2,278,805 | 2,278,820 |
Deferred income taxes | 870,472 | 816,899 |
Purchased intangible assets, net | 871,999 | 935,303 |
Other non-current assets | 624,849 | 637,462 |
Total assets | 14,136,841 | 14,072,357 |
Current liabilities: | ||
Accounts payable | 363,662 | 371,026 |
Deferred system revenue | 665,777 | 651,720 |
Deferred service revenue | 406,940 | 416,606 |
Other current liabilities | 2,381,364 | 2,303,490 |
Total current liabilities | 3,817,743 | 3,742,842 |
Long-term debt | 5,891,731 | 5,890,736 |
Deferred tax liabilities | 505,812 | 529,287 |
Deferred service revenue | 192,236 | 176,681 |
Other non-current liabilities | 739,102 | 813,058 |
Total liabilities | 11,146,624 | 11,152,604 |
Commitments and contingencies (Notes 9, 14 and 15) | ||
Stockholders’ equity: | ||
Common stock and capital in excess of par value | 2,073,476 | 2,107,663 |
Retained earnings | 966,179 | 848,431 |
Accumulated other comprehensive loss | (49,438) | (36,341) |
Total stockholders’ equity | 2,990,217 | 2,919,753 |
Total liabilities and stockholders’ equity | $ 14,136,841 | $ 14,072,357 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||
Revenues | $ 2,396,956 | $ 2,724,424 |
Costs and expenses: | ||
Costs of revenues | 946,891 | 1,041,226 |
Research and development | 311,214 | 318,515 |
Selling, general and administrative | 239,645 | 253,980 |
Interest expense | 74,234 | 74,395 |
Loss on extinguishment of debt | 0 | 13,286 |
Other expense (income), net | (26,739) | (47,006) |
Income before income taxes | 851,711 | 1,070,028 |
Provision for income taxes | 110,336 | 43,963 |
Net income | 741,375 | 1,026,065 |
Less: Net income attributable to non-controlling interest | 0 | 74 |
Net income attributable to KLA | $ 741,375 | $ 1,025,991 |
Net income per share attributable to KLA | ||
Basic (in dollars per share) | $ 5.43 | $ 7.23 |
Diluted (in dollars per share) | $ 5.41 | $ 7.20 |
Weighted-average number of shares: | ||
Basic (in shares) | 136,412 | 141,829 |
Diluted (in shares) | 137,104 | 142,563 |
Product | ||
Revenues: | ||
Revenues | $ 1,836,664 | $ 2,195,609 |
Service | ||
Revenues: | ||
Revenues | $ 560,292 | $ 528,815 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 741,375 | $ 1,026,065 |
Currency translation adjustments: | ||
Cumulative currency translation adjustments | (6,853) | (19,712) |
Income tax benefit | 260 | 0 |
Net change related to currency translation adjustments | (6,593) | (19,712) |
Cash flow hedges: | ||
Net unrealized gains (losses) arising during the period | (1,481) | 1,768 |
Reclassification adjustments for net gains included in net income | (7,108) | (10,175) |
Income tax benefit | 856 | 1,188 |
Net change related to cash flow hedges | (7,733) | (7,219) |
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans | 242 | 891 |
Available-for-sale securities: | ||
Net unrealized gains (losses) arising during the period | 1,244 | (6,964) |
Reclassification adjustments for net losses included in net income | 12 | 174 |
Income tax (provision) benefit | (269) | 1,460 |
Net change related to available-for-sale securities | 987 | (5,330) |
Other comprehensive loss | (13,097) | (31,370) |
Less: Comprehensive income attributable to non-controlling interest | 0 | 74 |
Total comprehensive income attributable to KLA | $ 728,278 | $ 994,621 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Total KLA Stockholders’ Equity | Common Stock and Capital in Excess of Par Value, Shares | Common Stock and Capital in Excess of Par Value, Amount | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- Controlling Interest |
Beginning balance (in shares) at Jun. 30, 2022 | 141,804 | ||||||
Beginning balance at Jun. 30, 2022 | $ 1,399,090 | $ 1,401,351 | $ 1,061,940 | $ 366,882 | $ (27,471) | $ (2,261) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,025,991 | 1,025,991 | 1,025,991 | ||||
Net income attributable to non-controlling interest | 74 | 74 | |||||
Other comprehensive loss | (31,370) | (31,370) | (31,370) | ||||
Net issuance under employee stock plans (in shares) | 171 | ||||||
Net issuance under employee stock plans | $ (54,950) | (54,950) | (54,950) | ||||
Repurchase of common stock (in shares) | (257) | (257) | |||||
Repurchase of common stock | $ (89,616) | (89,616) | (1,926) | (87,690) | |||
Cash dividends and dividend equivalents declared | (186,216) | (186,216) | (186,216) | ||||
Stock-based compensation expense | 34,982 | 34,982 | 34,982 | ||||
Purchase of non-controlling interest | (4,294) | 1,902 | 1,902 | (6,196) | |||
Disposal of non-controlling interest | 8,383 | 8,383 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 141,718 | ||||||
Ending balance at Sep. 30, 2022 | 2,102,074 | 2,102,074 | 1,041,948 | 1,118,967 | (58,841) | 0 | |
Beginning balance (in shares) at Jun. 30, 2023 | 136,750 | ||||||
Beginning balance at Jun. 30, 2023 | 2,919,753 | 2,919,753 | 2,107,663 | 848,431 | (36,341) | 0 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 741,375 | 741,375 | 741,375 | ||||
Net income attributable to non-controlling interest | 0 | ||||||
Other comprehensive loss | (13,097) | (13,097) | (13,097) | ||||
Net issuance under employee stock plans (in shares) | 173 | ||||||
Net issuance under employee stock plans | $ (68,237) | (68,237) | (68,237) | ||||
Repurchase of common stock (in shares) | (956) | (956) | |||||
Repurchase of common stock | $ (459,093) | (459,093) | (14,722) | (444,371) | |||
Cash dividends and dividend equivalents declared | (179,256) | (179,256) | (179,256) | ||||
Stock-based compensation expense | 48,772 | 48,772 | 48,772 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 135,967 | ||||||
Ending balance at Sep. 30, 2023 | $ 2,990,217 | $ 2,990,217 | $ 2,073,476 | $ 966,179 | $ (49,438) | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends and dividend equivalents declared (in dollars per share) | $ 1.30 | $ 1.30 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 741,375 | $ 1,026,065 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 102,403 | 101,938 |
Loss on extinguishment of debt | 0 | 13,286 |
Unrealized foreign exchange loss and other | 9,970 | 1,783 |
Asset impairment charges | 0 | 9,156 |
Disposal of non-controlling interest | 0 | 8,270 |
Stock-based compensation expense | 48,772 | 34,982 |
Gain on sale of business | 0 | (29,687) |
Deferred income taxes | (71,322) | (156,226) |
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions: | ||
Accounts receivable | 107,018 | (55,073) |
Inventories | (138,419) | (265,530) |
Other assets | (7,520) | 45,637 |
Accounts payable | 8,345 | 36,472 |
Deferred system revenue | 14,057 | (60,492) |
Deferred service revenue | 5,901 | (12,411) |
Other liabilities | 63,160 | 313,375 |
Net cash provided by operating activities | 883,740 | 1,011,545 |
Cash flows from investing activities: | ||
Net proceeds from sale of business | 0 | 75,358 |
Business acquisitions, net of cash acquired | 0 | (27,144) |
Capital expenditures | (68,045) | (84,352) |
Purchases of available-for-sale securities | (530,842) | (256,793) |
Proceeds from sale of available-for-sale securities | 7,983 | 26,608 |
Proceeds from maturity of available-for-sale securities | 201,149 | 211,465 |
Purchases of trading securities | (49,958) | (19,512) |
Proceeds from sale of trading securities | 48,042 | 19,875 |
Proceeds from other investments | 0 | 1,020 |
Net cash used in investing activities | (391,671) | (53,475) |
Cash flows from financing activities: | ||
Payment of debt issuance costs | 0 | (6,515) |
Proceeds from revolving credit facility | 0 | 300,000 |
Repayment of debt | 0 | (662,250) |
Common stock repurchases | (455,412) | (89,846) |
Payment of dividends to stockholders | (181,507) | (187,984) |
Issuance of common stock | 0 | 115 |
Tax withholding payments related to vested and released restricted stock units | (68,237) | (54,952) |
Purchase of non-controlling interest | 0 | (4,295) |
Net cash used in financing activities | (705,156) | (705,727) |
Effect of exchange rate changes on cash and cash equivalents | (3,208) | (17,971) |
Net increase (decrease) in cash and cash equivalents | (216,295) | 234,372 |
Cash and cash equivalents at beginning of period | 1,927,865 | 1,584,908 |
Cash and cash equivalents at end of period | 1,711,570 | 1,819,280 |
Supplemental cash flow disclosures: | ||
Income taxes paid, net | 99,388 | 101,061 |
Interest paid | 113,236 | 44,216 |
Non-cash activities: | ||
Contingent consideration payable - financing activities | (920) | 145 |
Dividends payable - financing activities | 1,853 | 1,942 |
Unsettled common stock repurchase - financing activities | 11,000 | 0 |
Accrued purchases of land, property and equipment - investing activities | $ 22,729 | $ 34,027 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2023 | |
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. 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, 2023 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, 2023, 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, 2023. 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, 2023 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, 2024. 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 dates of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during 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, 2023. Recent Accounting Pronouncements Recently Adopted In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires companies to apply revenue guidance to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination at carrying value. Under the prior business combination guidance, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2024 on a prospective basis. The impact of adopting this update will depend on the magnitude of contract assets and contract liabilities acquired in future acquisitions. Updates Not Yet Effective None. |
REVENUE
REVENUE | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 June 30, 2023 $ Change % Change Accounts receivable, net $ 1,630,746 $ 1,753,361 $ (122,615) (7) % Contract assets $ 93,300 $ 117,137 $ (23,837) (20) % Contract liabilities $ 1,264,953 $ 1,245,007 $ 19,946 2 % 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, 2023 was mainly due to $69.8 million of contract assets reclassified to accounts receivable, net as our right to consideration for these contract assets became unconditional, partially offset by $46.5 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, 2023 was mainly due to an increase in the value of products and services billed to customers for which control of the products and services has not transferred to the customers, partially offset by recognition in revenue of $601.1 million that was included in contract liabilities as of June 30, 2023. The change in contract liabilities during the three months ended September 30, 2022 was mainly due to the recognition in revenue of $489.5 million that was included in contract liabilities as of June 30, 2022, partially offset by an increase in the value of products and services billed to customers for which control of the products and services 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, 2023, we had $10.85 billion of remaining performance obligations, which represents our obligation to deliver products and services, and primarily consists of sales orders where written customer requests have been received. This amount includes customer deposits of $818.9 million as disclosed in Note 4 “Financial Statement Components” and excludes contract liabilities of $1.26 billion as described above. We expect to recognize approximately 40% to 50% of these performance obligations as revenue beyond the next 12 months, but this estimate is subject to constant change. The supply chain disruptions caused by the pandemic as well as elevated demand levels in recent years have led to customers agreeing to purchase equipment from us with lead times that are longer than our historical experience. More recently, we have seen the macro-driven slowdown has impacted consumers’ semiconductor device demand, causing the semiconductor industry to rebalance its supply chain and inventory levels. In response to this change, some of our customers began adjusting their capacity expansion-focused capital expenditure plans for calendar year 2023. As customers try to balance the evolution of their technological, production or market needs with the timing and content of orders placed with us, there is elevated risk of order modifications, pushouts, or cancellations. In addition, in October 2022, the U.S. government issued regulations that imposed new export licensing requirements for certain U.S. semiconductor and high-performance computing technology (including wafer fab equipment), for the use of such technology for certain end uses in the People’s Republic of China (“China”), and for the provision of support by U.S. Persons to certain advanced integrated circuit (“IC”) fabs located in China. The regulations impose export license requirements effectively on all KLA products and services to customers located in China that fabricate certain advanced logic, NAND and DRAM ICs. KLA is also restricted from providing certain U.S. origin tools, software and technology to certain wafer fab equipment manufacturers located in China, absent an export license. In October 2023, the U.S. government issued additional regulations that go into effect in November 2023. These additional rules are designed to update export controls on advanced computing semiconductors and semiconductor manufacturing equipment, as well as items that support supercomputing applications and end-uses, to arms embargoed countries, including China. They adjust the parameters included in the existing regulations that determine whether an advanced computing chip is restricted and impose new measures to address risks of circumvention of the controls established in October 2022. The regulations are very complex and we are still evaluating these rules and assessing their impact on our business and operations. We are taking appropriate measures to comply with all government regulations, and will continue to apply for export licenses, when required, to avoid disruption to our customers’ operations. While some export licenses have been obtained by us or our customers, there can be no assurance that export licenses applied for by either us or our customers, now or in the future, will be granted. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2023 | |
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. See Note 8 “Debt” to our Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes, as defined in that Note. 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. There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the three months ended September 30, 2023. 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, 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 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 and Dispositions” 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, 2023 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 1,077,456 $ 1,077,456 $ — $ — U.S. Treasury securities 12,740 — 12,740 — Marketable securities: Corporate debt securities 681,245 — 681,245 — Municipal securities 30,478 — 30,478 — U.S. Government agency securities 133,687 133,687 — — U.S. Treasury securities 595,220 473,725 121,495 — Equity securities 13,825 13,825 — — Total cash equivalents and marketable securities (1) 2,544,651 1,698,693 845,958 — Other current assets: Derivative assets 37,808 — 37,808 — Other non-current assets: Executive Deferred Savings Plan 248,455 223,621 24,834 — Total financial assets (1) $ 2,830,914 $ 1,922,314 $ 908,600 $ — Liabilities Derivative liabilities $ (27,682) $ — $ (27,682) $ — Contingent consideration payable (5,528) — — (5,528) Total financial liabilities $ (33,210) $ — $ (27,682) $ (5,528) ________________ (1) Excludes cash of $311.9 million held in operating accounts and time deposits of $492.8 million (of which $309.5 million were cash equivalents) as of September 30, 2023. 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, 2023 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 1,257,223 $ 1,257,223 $ — $ — U.S. Government agency securities 3,788 — 3,788 — U.S. Treasury securities 11,500 — 11,500 — Marketable securities: Corporate debt securities 502,650 — 502,650 — Municipal securities 31,788 — 31,788 — U.S. Government agency securities 129,784 127,715 2,069 — U.S. Treasury securities 518,215 425,234 92,981 — Equity securities 18,159 18,159 — — Total cash equivalents and marketable securities (1) 2,473,107 1,828,331 644,776 — Other current assets: Derivative assets 35,712 — 35,712 — Other non-current assets: Executive Deferred Savings Plan 256,846 198,639 58,207 — Total financial assets (1) $ 2,765,665 $ 2,026,970 $ 738,695 $ — Liabilities Derivative liabilities $ (12,106) $ — $ (12,106) $ — Contingent consideration payable (6,447) — — (6,447) Total financial liabilities $ (18,553) $ — $ (12,106) $ (6,447) ________________ (1) Excludes cash of $298.6 million held in operating accounts and time deposits of $471.4 million (of which $356.7 million were cash equivalents) as of June 30, 2023. |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 June 30, 2023 Accounts receivable, net: Accounts receivable, gross $ 1,664,280 $ 1,786,993 Allowance for credit losses (33,534) (33,632) $ 1,630,746 $ 1,753,361 Inventories: Customer service parts $ 560,088 $ 524,096 Raw materials 1,614,050 1,559,202 Work-in-process 635,045 578,864 Finished goods 198,522 214,622 $ 3,007,705 $ 2,876,784 Other current assets: Deferred costs of revenues $ 126,873 $ 133,067 Prepaid expenses 120,553 121,204 Contract assets 93,300 117,137 Prepaid income and other taxes 33,371 64,901 Other current assets 68,922 62,419 $ 443,019 $ 498,728 Land, property and equipment, net: Land $ 78,261 $ 72,287 Buildings and leasehold improvements 862,733 825,975 Machinery and equipment 1,044,335 1,016,713 Office furniture and fixtures 59,221 58,036 Construction-in-process 169,306 168,817 2,213,856 2,141,828 Less: accumulated depreciation (1,153,931) (1,109,987) $ 1,059,925 $ 1,031,841 Other non-current assets: Executive Deferred Savings Plan (1) $ 248,455 $ 256,846 Operating lease right of use assets 218,053 208,706 Other non-current assets 158,341 171,910 $ 624,849 $ 637,462 Other current liabilities: Customer deposits $ 675,582 $ 769,000 Income taxes payable 517,768 383,012 Compensation and benefits 472,768 370,536 Other liabilities and accrued expenses 365,615 383,407 Executive Deferred Savings Plan (1) 248,818 258,223 Interest payable 65,299 105,270 Operating lease liabilities 35,514 34,042 $ 2,381,364 $ 2,303,490 Other non-current liabilities: Income taxes payable $ 267,185 $ 322,113 Customer deposits 143,339 156,874 Operating lease liabilities 138,682 138,354 Pension liabilities 60,821 63,672 Other non-current liabilities 129,075 132,045 $ 739,102 $ 813,058 ________________ (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 benefit associated with changes in the EDSP liability included in selling, general and administrative (“SG&A”) expense was $9.3 million and $10.3 million during the three months ended September 30, 2023 and 2022, respectively. The amount of net losses associated with changes in the EDSP assets included in SG&A expense was $9.5 million and $10.3 million during the three months ended September 30, 2023 and 2022, 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, 2023. Accumulated Other Comprehensive Income (Loss) The components of Accumulated Other Comprehensive Income (Loss) (“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, 2023 $ (71,220) $ (11,810) $ 52,211 $ (18,619) $ (49,438) Balance as of June 30, 2023 $ (64,627) $ (12,797) $ 59,944 $ (18,861) $ (36,341) The effects on net income of amounts reclassified from AOCI to the Condensed Consolidated Statements of Operations for the indicated periods were as follows (in thousands; amounts in parentheses indicate debits or reductions to earnings): AOCI Components Three Months Ended Location in the Condensed Consolidated Statement of Operations September 30, 2023 2022 Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts Revenues $ 3,396 $ 14,605 Costs of revenues and operating expenses 2,775 (5,367) Interest expense 937 937 Net gains reclassified from AOCI $ 7,108 $ 10,175 Unrealized losses on available-for-sale securities Other expense (income), net $ (12) $ (174) The amount reclassified out of AOCI related to our defined benefit pension plans that was recognized as a component of net periodic cost for the three months ended September 30, 2023 and 2022 was $0.3 million and $0.4 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, 2023. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 687,213 $ 48 $ (6,016) $ 681,245 Money market funds and other 1,077,456 — — 1,077,456 Municipal securities 31,032 2 (556) 30,478 U.S. Government agency securities 134,563 — (876) 133,687 U.S. Treasury securities 615,592 5 (7,637) 607,960 Equity securities (1) 3,211 10,614 — 13,825 Subtotal 2,549,067 10,669 (15,085) 2,544,651 Add: Time deposits (2) 492,767 — — 492,767 Less: Cash equivalents 1,399,666 1 — 1,399,667 Marketable securities $ 1,642,168 $ 10,668 $ (15,085) $ 1,637,751 As of June 30, 2023 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 508,511 $ 52 $ (5,913) $ 502,650 Money market funds and other 1,257,223 — — 1,257,223 Municipal securities 32,525 — (737) 31,788 U.S. Government agency securities 134,486 4 (918) 133,572 U.S. Treasury securities 538,487 10 (8,782) 529,715 Equity securities (1) 3,211 14,948 — 18,159 Subtotal 2,474,443 15,014 (16,350) 2,473,107 Add: Time deposits (2) 471,439 — — 471,439 Less: Cash equivalents 1,629,248 4 — 1,629,252 Marketable securities $ 1,316,634 $ 15,010 $ (16,350) $ 1,315,294 ________________ (1) Unrealized gains on equity securities included in our portfolio include the initial fair value adjustment recorded upon a security becoming marketable. (2) Time deposits excluded from fair value measurements. Our investment portfolio includes 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 these investments upon maturity. As of September 30, 2023, we had 591 investments in a gross 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 dates indicated below. As of September 30, 2023 Less than 12 Months 12 Months or Greater Total (In thousands) Fair Value Gross Fair Value Gross Fair Value Gross Corporate debt securities $ 463,017 $ (2,772) $ 165,161 $ (3,244) $ 628,178 $ (6,016) Municipal securities 11,480 (147) 14,834 (409) 26,314 (556) U.S. Government agency securities 112,180 (736) 19,667 (140) 131,847 (876) U.S. Treasury securities 305,758 (2,456) 249,795 (5,181) 555,553 (7,637) Total $ 892,435 $ (6,111) $ 449,457 $ (8,974) $ 1,341,892 $ (15,085) As of June 30, 2023 Less than 12 Months 12 Months or Greater Total (In thousands) Fair Value Gross Fair Value Gross Fair Value Gross Corporate debt securities $ 310,613 $ (2,242) $ 161,263 $ (3,671) $ 471,876 $ (5,913) Municipal securities 9,011 (199) 17,253 (538) 26,264 (737) U.S. Government agency securities 80,793 (459) 36,406 (459) 117,199 (918) U.S. Treasury securities 288,376 (4,117) 183,475 (4,665) 471,851 (8,782) Total $ 688,793 $ (7,017) $ 398,397 $ (9,333) $ 1,087,190 $ (16,350) 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, 2023 (In thousands) Amortized Cost Fair Value Due within one year $ 846,346 $ 852,255 Due after one year through three years 795,822 785,496 Total $ 1,642,168 $ 1,637,751 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, 2023 and 2022 were immaterial. |
BUSINESS COMBINATIONS AND DISPO
BUSINESS COMBINATIONS AND DISPOSITIONS | 3 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS AND DISPOSITIONS | BUSINESS COMBINATIONS AND DISPOSITIONS Business Combinations On August 9, 2022, we acquired a privately held company, primarily to secure the supply of materials for existing products, for aggregate purchase consideration of $32.7 million, payable in cash. We allocated the purchase consideration as follows: $30.0 million to identifiable intangible assets, $2.3 million to net tangible assets, $6.5 million to deferred tax liabilities and $6.8 million to goodwill. The goodwill was assigned to the Wafer Inspection and Patterning reporting unit. We have included the financial results of the acquisition in our Condensed Consolidated Financial Statements from the acquisition date, and these results were not material to our Condensed Consolidated Financial Statements. The goodwill recorded as a result of the above acquisition was not deductible for tax purposes. As of September 30, 2023, we had $5.5 million of contingent consideration recorded for the acquisitions completed during our fiscal year ended June 30, 2019, all of which is classified as a current liability on the Condensed Consolidated Balance Sheet. Business Dispositions As of June 30, 2022, we owned approximately 94% of the outstanding equity interest in Orbograph Ltd. (“Orbograph”), a non-core business engaged in the development and marketing of character recognition solutions to banks, financial and other payment processing institutions and healthcare providers. On August 9, 2022, we acquired the non-controlling interest in Orbograph. On August 11, 2022, we sold our entire interest in Orbograph to a portfolio company of a private equity firm for total consideration of $110.0 million and net cash proceeds from the transaction of $75.4 million. We recognized a pre-tax gain from the sale of $29.7 million, which was recorded as part of other expense (income), net. Included in the sale were $26.5 million in tangible assets, $30.5 million in liabilities and $61.2 million in goodwill and intangible assets. For additional details of business combinations and assets held for sale, refer to Note 6 “Business Combinations and Dispositions” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023. |
GOODWILL AND PURCHASED INTANGIB
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 3 Months Ended |
Sep. 30, 2023 | |
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 business combinations. We have three reportable segments and five 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, 2023: (In thousands) Wafer Inspection and Patterning Global Service and Support ( “ GSS ” ) Specialty Semiconductor Process Printed Circuit Board (“PCB”) and Display Component Inspection Total Balance as of June 30, 2023 $ 727,130 $ 25,908 $ 681,858 $ 830,349 $ 13,575 $ 2,278,820 Foreign currency adjustments (15) — — — — (15) Balance as of September 30, 2023 $ 727,115 $ 25,908 $ 681,858 $ 830,349 $ 13,575 $ 2,278,805 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, 2023, 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, 2023. 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, 2023. Purchased Intangible Assets The components of purchased intangible assets as of the dates indicated below were as follows: (In thousands) As of September 30, 2023 As of June 30, 2023 Category Range of Useful Lives (in years) Gross Accumulated Net Gross Accumulated Net Existing technology 4-8 $ 1,552,074 $ 887,902 $ 664,172 $ 1,536,826 $ 841,815 $ 695,011 Customer relationships 4-9 358,567 214,609 143,958 358,567 205,037 153,530 Trade name / Trademark 4-7 119,083 86,068 33,015 116,583 78,749 37,834 Order backlog and other <1-7 83,336 82,590 746 85,836 82,264 3,572 Intangible assets subject to amortization 2,113,060 1,271,169 841,891 2,097,812 1,207,865 889,947 In-process research and development 46,074 15,966 30,108 61,322 15,966 45,356 Total $ 2,159,134 $ 1,287,135 $ 871,999 $ 2,159,134 $ 1,223,831 $ 935,303 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. Impairment indicators primarily include declines in our operating cash flows from the use of these assets. If 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, 2023, 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) 2023 2022 Amortization expense - Costs of revenues $ 46,088 $ 45,066 Amortization expense - SG&A 17,216 20,128 Amortization expense - Research and development — 31 Total $ 63,304 $ 65,225 Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2023, the remaining estimated annual amortization expense is expected to be as follows: Fiscal year ending June 30: Amortization (In thousands) 2024 (remaining nine months) $ 177,836 2025 224,688 2026 208,775 2027 132,194 2028 49,727 2029 and thereafter 48,671 Total $ 841,891 |
DEBT
DEBT | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes our debt as of September 30, 2023 and June 30, 2023: As of September 30, 2023 As of June 30, 2023 Amount Effective Amount Effective Fixed-rate 4.650% Senior Notes due on November 1, 2024 $ 750,000 4.682 % $ 750,000 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 4.650% Senior Notes due on July 15, 2032 1,000,000 4.657 % 1,000,000 4.657 % Fixed-rate 4.950% Senior Notes due on July 15, 2052 1,200,000 5.009 % 1,200,000 5.009 % Fixed-rate 5.250% Senior Notes due on July 15, 2062 800,000 5.259 % 800,000 5.259 % Total 5,950,000 5,950,000 Unamortized discount/premium, net (17,558) (17,848) Unamortized debt issuance costs (40,711) (41,416) Total $ 5,891,731 $ 5,890,736 Reported as: Long-term debt $ 5,891,731 $ 5,890,736 Total $ 5,891,731 $ 5,890,736 Senior Notes and Debt Redemption In June 2022, we issued $3.00 billion aggregate principal amount of senior, unsecured notes (the “2022 Senior Notes”) as follows: $1.00 billion of 4.650% senior, unsecured notes due July 15, 2032; $1.20 billion of 4.950% senior, unsecured notes due July 15, 2052; and $800.0 million of 5.250% senior, unsecured notes due July 15, 2062. A portion of the net proceeds of the 2022 Senior Notes was used to complete a tender offer in July 2022 for $500.0 million of our Senior Notes due November 1, 2024 including associated redemption premiums, accrued interest and other fees and expenses. The transaction resulted in a pre-tax net loss on extinguishment of debt of $13.3 million for the three months ended September 30, 2022. The remainder of the net proceeds were used for share repurchases and for general corporate purposes. Prior to June 2022, the following aggregate principal amounts of senior, unsecured long-term notes were issued in the following periods: $750.0 million in February 2020 (the “2020 Senior Notes”), $1.20 billion in March 2019 (the “2019 Senior Notes”) and $2.50 billion in November 2014 (the “2014 Senior Notes”). These, along with the 2022 Senior Notes, are collectively referred to as the “Senior Notes.” The original discounts on the Senior Notes are being amortized over the life of the debt. Interest is payable as follows: semi-annually on January 15 and July 15 of each year for the 2022 Senior Notes; 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 relevant indentures for the Senior Notes (collectively, the “Indenture”) include covenants that limit our ability to grant liens on our facilities and enter into sale and leaseback transactions. 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 Investors Service, S&P Global Ratings 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, 2023 and June 30, 2023 was $5.31 billion and $5.69 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, 2023, we were in compliance with all of our covenants under the Indenture associated with the Senior Notes. Revolving Credit Facility As of September 30, 2023, we have in place a renegotiated Credit Agreement dated June 8, 2022 (“Credit Agreement”) for an unsecured Revolving Credit Facility (“Revolving Credit Facility”) having a maturity date of June 8, 2027 that allows us to borrow up to $1.50 billion. Subject to the terms of the Credit Agreement, the Revolving Credit Facility may be increased by an amount up to $250.0 million in the aggregate. As of September 30, 2023, 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 we may exercise two one-year extension options with the consent of the lenders. We may prepay outstanding borrowings under the Revolving Credit Facility at any time without a prepayment penalty. Borrowings under the Revolving Credit Facility can be made as Term Secured Overnight Financing Rate (“SOFR”) Loans or Alternate Base Rate (“ABR”) Loans, at the Company’s option. In the event that Term SOFR is unavailable, any Term SOFR elections will be converted to Daily Simple SOFR, if available. Each Term SOFR Loan will bear interest at a rate per annum equal to the applicable Adjusted Term SOFR rate, which is equal to the applicable Term SOFR rate plus 10 bps that shall not be less than zero, plus a spread ranging from 75 bps to 125 bps , as determined by the Company’s credit ratings at the time. Each ABR Loan will bear interest at a rate per annum equal to the ABR plus a spread ranging from 0 bps to 25 bps , as determined by the Company’s credit ratings at the time. We are also obligated to pay an annual commitment fee on the daily undrawn balance of the Revolving Credit Facility, which ranges from 4.5 bps to 12.5 bps , subject to an adjustment in conjunction with changes to our credit rating. The applicable interest rates and commitment fees are also subject to adjustment based on the Company’s performance against certain environmental sustainability key performance indicators (“KPI”) related to greenhouse gas emissions and renewable electricity usage. Our performance against these KPIs in calendar year 2022 resulted in reductions to the fees associated with our Revolving Credit Facility. As of September 30, 2023, we elected to pay interest on borrowings under the Revolving Credit Facility at the applicable Adjusted Term SOFR rate plus a spread of 97.5 bps and the applicable commitment fee on the daily undrawn balance of the Revolving Credit Facility was 8.5 bps. Under the Credit Agreement, the maximum leverage ratio on a quarterly basis is 3.50 to 1.00, covering the trailing four consecutive fiscal quarters for each fiscal quarter, which may 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, 2023, our maximum allowed leverage ratio was 3.50 to 1.00. We were in compliance with all covenants under the Credit Agreement as of September 30, 2023. For additional details, refer to Note 8 “Debt” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023. |
LEASES
LEASES | 3 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASESWe have operating leases for facilities, vehicles and other equipment. Our facility leases are primarily used for administrative functions, research and development (“R&D”), manufacturing, and storage and distribution. Our finance leases are not material. Our existing leases do not contain significant restrictive provisions or residual value guarantees; however, certain leases contain provisions for the payment of maintenance, real estate taxes or insurance costs by us. Our leases have remaining lease terms ranging from less than one year to 29 years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised. Lease expense was $12.4 million and $9.4 million for the three months ended September 30, 2023 and 2022, 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, 2023 and 2022. As of September 30, 2023 and June 30, 2023, the weighted-average remaining lease term was 6.6 and 6.7 years, respectively, and the weighted-average discount rate for operating leases was 3.43% and 3.36%, respectively. Supplemental cash flow information related to leases was as follows: Three Months Ended September 30, In thousands 2023 2022 Operating cash outflows from operating leases $ 10,002 $ 9,627 Right of use assets obtained in exchange for new operating lease liabilities $ 12,968 $ 9,220 Maturities of lease liabilities as of September 30, 2023 were as follows: Fiscal Year Ending June 30: (In thousands) 2024 (remaining nine months) $ 30,560 2025 37,843 2026 29,918 2027 23,728 2028 15,664 2029 and thereafter 61,970 Total lease payments 199,683 Less imputed interest (25,487) Total $ 174,196 |
EQUITY, LONG-TERM INCENTIVE COM
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023, 7.4 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, 2023. On August 3, 2023, our Board of Directors adopted the KLA Corporation 2023 Incentive Award Plan, which is intended to replace our 2004 Plan. The new plan is subject to approval by our stockholders at the annual meeting of stockholders to be held on November 1, 2023. Equity Incentive Plans - General Information The following table summarizes the combined activity under our equity incentive plans: (In thousands) Available For Grant (1) Balance as of June 30, 2023 7,761 Restricted stock units granted (2) (386) Restricted stock units canceled 27 Balance as of September 30, 2023 7,402 __________________ (1) The number of restricted stock units (“RSU”) 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) Includes RSUs granted to senior management during the three months ended September 30, 2023 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 RSU”). This line item includes all such performance-based RSUs granted during the three months ended September 30, 2023 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, 2023 reflects the application of the multiplier described above). 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 that 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. The following table shows stock-based compensation expense for the indicated periods: Three Months Ended September 30, (In thousands) 2023 2022 Stock-based compensation expense by: Costs of revenues $ 7,669 $ 5,589 R&D 13,028 8,356 SG&A 28,075 21,037 Total stock-based compensation expense $ 48,772 $ 34,982 Stock-based compensation capitalized as inventory as of September 30, 2023 and June 30, 2023 was $17.5 million and $16.7 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, 2023: Shares (1) (In thousands) Weighted-Average Outstanding RSUs as of June 30, 2023 (2) 1,715 $ 312.40 Granted (3) 193 $ 501.15 Vested and released (309) $ 212.16 Forfeited (14) $ 342.70 Outstanding RSUs as of September 30, 2023 (2) 1,585 $ 354.61 __________________ (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, 2023 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, 2023). The RSUs granted by us generally vest as follows: (i) with respect to awards with only service-based vesting criteria, over periods ranging from two three The following table shows the weighted-average grant date fair value per unit for the RSUs granted, aggregate grant date fair value of RSUs 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) 2023 2022 Weighted-average grant date fair value per unit $ 501.15 $ 397.40 Grant date fair value of vested RSUs $ 65,524 $ 49,906 Tax benefits realized by us in connection with vested and released RSUs $ 16,054 $ 10,543 As of September 30, 2023, the unrecognized stock-based compensation expense balance related to RSUs was $417.3 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 1.7 years. The intrinsic value of outstanding RSUs as of September 30, 2023 was $726.8 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 both the three months ended September 30, 2023 and 2022, we approved Cash LTI awards of $0.1 million. 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, until otherwise amended, is equal to 85% of the lesser of (i) the fair market value of our common stock at the commencement of the applicable six months 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, 2023 2022 Stock purchase plan: Expected stock price volatility 32.8 % 41.6 % Risk-free interest rate 5.1 % 1.1 % Dividend yield 1.1 % 1.8 % Expected life (in years) 0.5 0.5 There was no cash received from employees for the issuance of shares under the ESPP or shares purchased by employees through the ESPP in the three months ended September 30, 2023 and 2022. The following table shows 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, 2023 2022 Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP $ 1,365 $ 562 Weighted-average fair value per share based on Black-Scholes model $ 114.32 $ 73.31 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, 2023, a total of 2.2 million shares were reserved and available for issuance under the ESPP. Quarterly Cash Dividends On September 1, 2023, we paid a quarterly cash dividend of $1.30 per share to stockholders of record as of the close of business on August 15, 2023. The total amount of regular quarterly cash dividends and dividend equivalents paid during the three months ended September 30, 2023 and 2022 was $181.5 million and $188.0 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, 2023 and June 30, 2023 was $9.9 million and $12.2 million, respectively. These amounts will be paid upon vesting of the underlying RSUs. Non-Controlling Interest |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM Our Board of Directors has authorized a program that permits us to repurchase our common stock, including an increase in the authorized repurchase amount of $2.00 billion in the first quarter of fiscal 2024. The stock repurchase program has no expiration date and may be suspended at any time. The intent of the program is, in part, to mitigate the potential dilutive impact related to our equity incentive plans and shares issued in connection with our ESPP as well as to return excess cash to our stockholders. Any and all share repurchase transactions are subject to market conditions and applicable legal requirements. Under the authoritative guidance, share repurchases are recognized as a reduction to retained earnings to the extent available, with any excess recognized as a reduction of capital in excess of par value. In addition, as explained further in Note 13 “Income Taxes,” the Inflation Reduction Act of 2022 (“IRA”) introduced a 1% excise tax imposed on certain stock repurchases by publicly traded companies made after December 31, 2022. The excise tax is recorded as part of the cost basis of treasury stock repurchased after December 31, 2022 and, as such, is included in stockholders’ equity. As of September 30, 2023, an aggregate of $3.45 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) 2023 2022 Number of shares of common stock repurchased 956 257 Total cost of repurchases $ 459,093 $ 89,616 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Sep. 30, 2023 | |
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 RSUs had been issued. The dilutive effect of outstanding RSUs 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, 2023 2022 Numerator: Net income attributable to KLA $ 741,375 $ 1,025,991 Denominator: Weighted-average shares - basic, excluding unvested RSUs 136,412 141,829 Effect of dilutive RSUs and options 692 734 Weighted-average shares - diluted 137,104 142,563 Basic net income per share attributable to KLA $ 5.43 $ 7.23 Diluted net income per share attributable to KLA $ 5.41 $ 7.20 Anti-dilutive securities excluded from the computation of diluted net income per share 123 205 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Income before income taxes $ 851,711 $ 1,070,028 Provision for income taxes $ 110,336 $ 43,963 Effective tax rate 13.0 % 4.1 % Our effective tax rate is lower than the U.S. federal statutory rate during the three months ended September 30, 2023 primarily due to the proportion of earnings generated in jurisdictions with tax rates lower than the U.S. statutory rate and the proportion of U.S. earnings eligible for the Foreign Derived Intangible Income deduction. 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 years ended June 30, 2018, June 30, 2019 and June 30, 2020. We are subject to state income tax examinations for all years beginning from the fiscal year ended June 30, 2019. 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, 2019. It is possible that certain examinations may be concluded in the next 12 months. The timing and resolution of income tax examinations are 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. Legislative Developments President Biden signed into law the CHIPS and Science Act of 2022 (“CHIPS Act,” where “CHIPS” stands for Creating Helpful Incentives to Produce Semiconductors) on August 9, 2022. The CHIPS Act provides for various incentives and tax credits among other items, including the Advanced Manufacturing Investment Credit (“AMIC”) which equals 25% of qualified investments in an advanced manufacturing facility that is placed in service after December 31, 2022. There was no material impact to our financial statements from the AMIC provision during the three months ended September 30, 2023. President Biden also signed into law the IRA on August 16, 2022. The IRA has several new provisions including a 15% corporate alternative minimum tax (“CAMT”) for certain large corporations that have at least an average of $1.0 billion of adjusted financial statement income over a consecutive three-tax-year period. The CAMT was effective for us in the quarter ended September 30, 2023 and we are not expecting to have any tax impact from the CAMT for the fiscal year ended June 30, 2024. The IRA also introduced a 1% excise tax imposed on certain stock repurchases by publicly traded companies made after December 31, 2022. We began recording the excise tax as part of the cost basis of treasury stock repurchased after December 31, 2022. Other than the AMIC, the CAMT and the excise tax imposed on certain stock repurchases as mentioned above, we are currently evaluating the applicability and impact of the other provisions in the IRA and the CHIPS Act on our Condensed Consolidated Financial Statements including our future cash flows. |
LITIGATION AND OTHER LEGAL MATT
LITIGATION AND OTHER LEGAL MATTERS | 3 Months Ended |
Sep. 30, 2023 | |
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 (“IP”), 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 IP 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Factoring. We have 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) 2023 2022 Receivables sold under factoring agreements $ 45,607 $ 104,247 Proceeds from sales of LC $ — $ 24,651 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 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 $2.3 billion as of September 30, 2023, a majority of which are 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, 2023, we have committed $168.8 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 $74.2 million, of which $41.2 million had been issued as of September 30, 2023, primarily to fund guarantees to customs authorities for value-added tax and other operating requirements of our consolidated 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 IP rights and a breach of warranties, representations and covenants related to matters such as title to assets sold, validity of certain IP 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 IP 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, 2023 | |
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, including foreign exchange contracts and 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 forward transactions and options contracts and interest rate forward transactions as cash flow hedges. In accordance with the accounting guidance, we also designate certain foreign currency exchange contracts as net investment hedge transactions intended to mitigate the variability of the value of certain investments in foreign subsidiaries. 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 exchange 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 new Israeli 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 foreign exchange contracts, 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. Since fiscal 2015, we have entered into four sets of forward contracts to hedge the benchmark interest rate on portions of our Senior Notes prior to issuance (“Rate Lock Agreements”). Upon issuance of the associated debt, the Rate Lock Agreements were settled and their fair values were recorded within AOCI. The resulting gains and losses from these transactions are amortized to interest expense over the lives of the associated debt. We recognized net gains of $0.9 million in the three months ended September 30, 2023, for the amortization of the net of the Rate Lock Agreements that had been recognized in AOCI, which decreased the interest expense on a net basis. We recognized a net gain of $0.9 million in the three months ended September 30, 2022, for the amortization of the net of the Rate Lock Agreements that had been recognized in AOCI, which increased the interest expense on a net basis. As of September 30, 2023, the aggregate unamortized portion of the fair value of the forward contracts for the Rate Lock Agreements was a $50.1 million net gain. 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. For derivative contracts executed after adopting the new accounting guidance in fiscal 2019, 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 exclude time value. The initial value of the component excluded from the assessment of effectiveness is recognized in earnings over the life of the derivative contract. Any differences between changes 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 exchange 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 in Hedging Relationships: Foreign Exchange Contracts and Rate Lock Agreements 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) 2023 2022 Derivatives Designated as Cash Flow Hedging Instruments: Rate lock agreements: Amounts included in the assessment of effectiveness $ — $ 937 Foreign exchange contracts: Amounts included in the assessment of effectiveness $ (1,533) $ 816 Amounts excluded from the assessment of effectiveness $ 52 $ 15 Derivatives Designated as Net Investment Hedging Instruments: Foreign exchange contracts (1) : $ 2,536 $ 3,679 __________________ (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, 2023 2022 (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 $ 2,396,956 $ 1,497,750 $ 74,234 $ (26,739) $ 2,724,424 $ 1,613,721 $ 74,395 $ (47,006) Gains (Losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from AOCI to earnings $ — $ — $ 937 $ — $ — $ — $ 937 $ — Foreign exchange contracts: Amount of gains (losses) reclassified from AOCI to earnings $ 3,649 $ 2,775 $ — $ — $ 14,915 $ (5,367) $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings $ (253) $ — $ — $ 52 $ (310) $ — $ — $ 455 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ (11,397) $ — $ — $ — $ 14,374 The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts with maximum remaining maturities of approximately 12 months as of the dates indicated below, were as follows: As of As of (In thousands) September 30, 2023 June 30, 2023 Cash flow hedge contracts - foreign currency Purchase $ 292,336 $ 218,315 Sell $ 149,964 $ 123,951 Net investment hedge contracts - foreign currency Sell $ 87,157 $ 87,157 Other foreign currency hedge contracts Purchase $ 610,168 $ 527,349 Sell $ 273,171 $ 204,902 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, 2023 June 30, 2023 Location September 30, 2023 June 30, 2023 (In thousands) Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts Other current assets $ 16,982 $ 24,498 Other current liabilities $ (6,141) $ (442) Total derivatives designated as hedging instruments 16,982 24,498 (6,141) (442) Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets 20,826 11,214 Other current liabilities (21,541) (11,664) Total derivatives not designated as hedging instruments 20,826 11,214 (21,541) (11,664) Total derivatives $ 37,808 $ 35,712 $ (27,682) $ (12,106) The changes in AOCI, before taxes, related to derivatives for the indicated periods were as follows: Three Months Ended September 30, (In thousands) 2023 2022 Beginning AOCI $ 81,611 $ 77,018 Amount reclassified to earnings as net gains (7,108) (10,175) Net change in unrealized gains 1,055 5,447 Ending AOCI $ 75,558 $ 72,290 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: As of September 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets (In thousands) 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 $ 37,808 $ — $ 37,808 $ (18,749) $ — $ 19,059 Derivatives - liabilities $ (27,682) $ — $ (27,682) $ 18,749 $ — $ (8,933) As of June 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets (In thousands) 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 $ 35,712 $ — $ 35,712 $ (8,968) $ — $ 26,744 Derivatives - liabilities $ (12,106) $ — $ (12,106) $ 8,968 $ — $ (3,138) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the three months ended September 30, 2023 and 2022, 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, including Advanced Micro Devices, Inc., Agilent Technologies, Inc., Ansys, Inc., Citrix Systems, Inc., HP Inc., Keysight Technologies, Inc. and Microchip Technology Incorporated. 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) 2023 2022 Total revenues $ 3,362 $ 757 Total purchases $ 1,821 $ 245 |
SEGMENT REPORTING AND GEOGRAPHI
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | 3 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | SEGMENT REPORTING AND GEOGRAPHIC INFORMATION Accounting Standards Codification 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 three reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB, Display and Component Inspection. 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 segment offers a comprehensive portfolio of inspection, metrology and data analytics products, and related services, which helps IC manufacturers achieve target yield throughout the entire semiconductor fabrication process, from R&D 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 Process 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 (“MEMS”), radio frequency (“RF”) 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 reportable segment is comprised of two operating segments, PCB and Display and Component Inspection. The CODM assesses the performance of each operating segment and allocates resources to those segments based on total revenues and segment gross profit and does not evaluate the segments using discrete asset information. Segment gross profit excludes corporate allocations and effects of changes in 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 three reportable segments for the indicated periods: Three Months Ended September 30, (In thousands) 2023 2022 Semiconductor Process Control: Revenues $ 2,135,478 $ 2,397,759 Segment gross profit 1,386,529 1,576,982 Specialty Semiconductor Process: Revenues 126,719 127,867 Segment gross profit 69,301 67,040 PCB, Display and Component Inspection: Revenues 136,043 200,745 Segment gross profit 39,820 85,674 Totals: Revenues for reportable segments $ 2,398,240 $ 2,726,371 Segment gross profit $ 1,495,650 $ 1,729,696 The following table reconciles total reportable segment revenues to total revenues for the indicated periods: Three Months Ended September 30, (In thousands) 2023 2022 Total revenues for reportable segments $ 2,398,240 $ 2,726,371 Corporate allocations and effects of changes in foreign currency exchange rates (1,284) (1,947) Total revenues $ 2,396,956 $ 2,724,424 The following table reconciles total segment gross profit to income before income taxes for the indicated periods: Three Months Ended September 30, (In thousands) 2023 2022 Total segment gross profit $ 1,495,650 $ 1,729,696 Acquisition-related charges, corporate allocations and effects of changes in foreign currency exchange rates (1) 45,585 46,498 R&D 311,214 318,515 SG&A 239,645 253,980 Interest expense 74,234 74,395 Loss on extinguishment of debt — 13,286 Other expense (income), net (26,739) (47,006) Income before income taxes $ 851,711 $ 1,070,028 __________________ (1) Acquisition-related charges primarily include amortization of intangible assets and other acquisition-related costs classified or 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, 2023 2022 Revenues: China $ 1,025,944 43 % $ 839,661 31 % Taiwan 405,343 17 % 748,334 27 % North America 250,713 10 % 233,754 9 % Japan 227,377 10 % 217,709 8 % Korea 219,821 9 % 407,462 15 % Europe and Israel 168,436 7 % 164,073 6 % Rest of Asia 99,322 4 % 113,431 4 % Total $ 2,396,956 100 % $ 2,724,424 100 % The following is a summary of revenues by major product categories for the indicated periods: (Dollar amounts in thousands) Three Months Ended September 30, 2023 2022 Revenues: Wafer Inspection $ 1,010,198 42 % $ 1,102,542 41 % Patterning 542,488 23 % 733,370 27 % Specialty Semiconductor Process 112,103 5 % 114,444 4 % PCB, Display and Component Inspection 71,164 3 % 134,443 5 % Services 560,292 23 % 528,815 19 % Other 100,711 4 % 110,810 4 % Total $ 2,396,956 100 % $ 2,724,424 100 % Wafer Inspection and Patterning products are offered in the Semiconductor Process Control segment. Services are offered in multiple segments. Other includes primarily refurbished systems, remanufactured legacy systems, and enhancements and upgrades for previous-generation products that are part of the Semiconductor Process Control segment. In the three months ended September 30, 2023, one customer accounted for approximately 11% of total revenues. In the three months ended September 30, 2022, two customers accounted for approximately 20% and 11% of total revenues. One customer and two customers on an individual basis accounted for greater than 10% of net accounts receivable at September 30, 2023 and at June 30, 2023, 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, 2023 June 30, 2023 Land, property and equipment, net: United States $ 686,532 $ 672,561 Singapore 155,152 150,989 Israel 92,641 92,815 Europe 88,694 74,015 Rest of Asia 36,906 41,461 Total $ 1,059,925 $ 1,031,841 |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES From time to time, management approves restructuring plans including workforce reductions in an effort to streamline operations. Restructuring charges were $0.6 million and $16.2 million for the three months ended September 30, 2023 and 2022, respectively. The fiscal year 2023 charges include one-time transaction bonuses triggered by the sale of Orbograph. As of September 30, 2023 and June 30, 2023, the accrual for restructuring charges was $3.0 million and $11.0 million, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 741,375 | $ 1,025,991 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
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. 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, 2023 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, 2023, 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, 2023. 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, 2023 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, 2024. |
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 dates of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires companies to apply revenue guidance to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination at carrying value. Under the prior business combination guidance, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2024 on a prospective basis. The impact of adopting this update will depend on the magnitude of contract assets and contract liabilities acquired in future acquisitions. Updates Not Yet Effective None. |
Fair Value Measurements | Our financial assets and liabilities are measured and recorded at fair value, except for our debt and certain equity investments in privately held companies. Equity investments without a readily available fair value are accounted for using the measurement alternative. The measurement alternative is calculated as cost minus impairment, if any, plus or minus changes resulting from observable price changes. See Note 8 “Debt” to our Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes, as defined in that Note. 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. There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the three months ended September 30, 2023. 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, 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, 2023 | |
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, 2023 June 30, 2023 $ Change % Change Accounts receivable, net $ 1,630,746 $ 1,753,361 $ (122,615) (7) % Contract assets $ 93,300 $ 117,137 $ (23,837) (20) % Contract liabilities $ 1,264,953 $ 1,245,007 $ 19,946 2 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 1,077,456 $ 1,077,456 $ — $ — U.S. Treasury securities 12,740 — 12,740 — Marketable securities: Corporate debt securities 681,245 — 681,245 — Municipal securities 30,478 — 30,478 — U.S. Government agency securities 133,687 133,687 — — U.S. Treasury securities 595,220 473,725 121,495 — Equity securities 13,825 13,825 — — Total cash equivalents and marketable securities (1) 2,544,651 1,698,693 845,958 — Other current assets: Derivative assets 37,808 — 37,808 — Other non-current assets: Executive Deferred Savings Plan 248,455 223,621 24,834 — Total financial assets (1) $ 2,830,914 $ 1,922,314 $ 908,600 $ — Liabilities Derivative liabilities $ (27,682) $ — $ (27,682) $ — Contingent consideration payable (5,528) — — (5,528) Total financial liabilities $ (33,210) $ — $ (27,682) $ (5,528) ________________ (1) Excludes cash of $311.9 million held in operating accounts and time deposits of $492.8 million (of which $309.5 million were cash equivalents) as of September 30, 2023. 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, 2023 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 1,257,223 $ 1,257,223 $ — $ — U.S. Government agency securities 3,788 — 3,788 — U.S. Treasury securities 11,500 — 11,500 — Marketable securities: Corporate debt securities 502,650 — 502,650 — Municipal securities 31,788 — 31,788 — U.S. Government agency securities 129,784 127,715 2,069 — U.S. Treasury securities 518,215 425,234 92,981 — Equity securities 18,159 18,159 — — Total cash equivalents and marketable securities (1) 2,473,107 1,828,331 644,776 — Other current assets: Derivative assets 35,712 — 35,712 — Other non-current assets: Executive Deferred Savings Plan 256,846 198,639 58,207 — Total financial assets (1) $ 2,765,665 $ 2,026,970 $ 738,695 $ — Liabilities Derivative liabilities $ (12,106) $ — $ (12,106) $ — Contingent consideration payable (6,447) — — (6,447) Total financial liabilities $ (18,553) $ — $ (12,106) $ (6,447) ________________ (1) Excludes cash of $298.6 million held in operating accounts and time deposits of $471.4 million (of which $356.7 million were cash equivalents) as of June 30, 2023. |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 June 30, 2023 Accounts receivable, net: Accounts receivable, gross $ 1,664,280 $ 1,786,993 Allowance for credit losses (33,534) (33,632) $ 1,630,746 $ 1,753,361 Inventories: Customer service parts $ 560,088 $ 524,096 Raw materials 1,614,050 1,559,202 Work-in-process 635,045 578,864 Finished goods 198,522 214,622 $ 3,007,705 $ 2,876,784 Other current assets: Deferred costs of revenues $ 126,873 $ 133,067 Prepaid expenses 120,553 121,204 Contract assets 93,300 117,137 Prepaid income and other taxes 33,371 64,901 Other current assets 68,922 62,419 $ 443,019 $ 498,728 Land, property and equipment, net: Land $ 78,261 $ 72,287 Buildings and leasehold improvements 862,733 825,975 Machinery and equipment 1,044,335 1,016,713 Office furniture and fixtures 59,221 58,036 Construction-in-process 169,306 168,817 2,213,856 2,141,828 Less: accumulated depreciation (1,153,931) (1,109,987) $ 1,059,925 $ 1,031,841 Other non-current assets: Executive Deferred Savings Plan (1) $ 248,455 $ 256,846 Operating lease right of use assets 218,053 208,706 Other non-current assets 158,341 171,910 $ 624,849 $ 637,462 Other current liabilities: Customer deposits $ 675,582 $ 769,000 Income taxes payable 517,768 383,012 Compensation and benefits 472,768 370,536 Other liabilities and accrued expenses 365,615 383,407 Executive Deferred Savings Plan (1) 248,818 258,223 Interest payable 65,299 105,270 Operating lease liabilities 35,514 34,042 $ 2,381,364 $ 2,303,490 Other non-current liabilities: Income taxes payable $ 267,185 $ 322,113 Customer deposits 143,339 156,874 Operating lease liabilities 138,682 138,354 Pension liabilities 60,821 63,672 Other non-current liabilities 129,075 132,045 $ 739,102 $ 813,058 ________________ (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 benefit associated with changes in the EDSP liability included in selling, general and administrative (“SG&A”) expense was $9.3 million and $10.3 million during the three months ended September 30, 2023 and 2022, respectively. The amount of net losses associated with changes in the EDSP assets included in SG&A expense was $9.5 million and $10.3 million during the three months ended September 30, 2023 and 2022, 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, 2023. |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Income (Loss) (“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, 2023 $ (71,220) $ (11,810) $ 52,211 $ (18,619) $ (49,438) Balance as of June 30, 2023 $ (64,627) $ (12,797) $ 59,944 $ (18,861) $ (36,341) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The effects on net income of amounts reclassified from AOCI to the Condensed Consolidated Statements of Operations for the indicated periods were as follows (in thousands; amounts in parentheses indicate debits or reductions to earnings): AOCI Components Three Months Ended Location in the Condensed Consolidated Statement of Operations September 30, 2023 2022 Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts Revenues $ 3,396 $ 14,605 Costs of revenues and operating expenses 2,775 (5,367) Interest expense 937 937 Net gains reclassified from AOCI $ 7,108 $ 10,175 Unrealized losses on available-for-sale securities Other expense (income), net $ (12) $ (174) |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 687,213 $ 48 $ (6,016) $ 681,245 Money market funds and other 1,077,456 — — 1,077,456 Municipal securities 31,032 2 (556) 30,478 U.S. Government agency securities 134,563 — (876) 133,687 U.S. Treasury securities 615,592 5 (7,637) 607,960 Equity securities (1) 3,211 10,614 — 13,825 Subtotal 2,549,067 10,669 (15,085) 2,544,651 Add: Time deposits (2) 492,767 — — 492,767 Less: Cash equivalents 1,399,666 1 — 1,399,667 Marketable securities $ 1,642,168 $ 10,668 $ (15,085) $ 1,637,751 As of June 30, 2023 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 508,511 $ 52 $ (5,913) $ 502,650 Money market funds and other 1,257,223 — — 1,257,223 Municipal securities 32,525 — (737) 31,788 U.S. Government agency securities 134,486 4 (918) 133,572 U.S. Treasury securities 538,487 10 (8,782) 529,715 Equity securities (1) 3,211 14,948 — 18,159 Subtotal 2,474,443 15,014 (16,350) 2,473,107 Add: Time deposits (2) 471,439 — — 471,439 Less: Cash equivalents 1,629,248 4 — 1,629,252 Marketable securities $ 1,316,634 $ 15,010 $ (16,350) $ 1,315,294 ________________ (1) Unrealized gains on equity securities included in our portfolio include the initial fair value adjustment recorded upon a security becoming marketable. (2) Time deposits excluded from fair value measurements. |
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the dates indicated below. As of September 30, 2023 Less than 12 Months 12 Months or Greater Total (In thousands) Fair Value Gross Fair Value Gross Fair Value Gross Corporate debt securities $ 463,017 $ (2,772) $ 165,161 $ (3,244) $ 628,178 $ (6,016) Municipal securities 11,480 (147) 14,834 (409) 26,314 (556) U.S. Government agency securities 112,180 (736) 19,667 (140) 131,847 (876) U.S. Treasury securities 305,758 (2,456) 249,795 (5,181) 555,553 (7,637) Total $ 892,435 $ (6,111) $ 449,457 $ (8,974) $ 1,341,892 $ (15,085) As of June 30, 2023 Less than 12 Months 12 Months or Greater Total (In thousands) Fair Value Gross Fair Value Gross Fair Value Gross Corporate debt securities $ 310,613 $ (2,242) $ 161,263 $ (3,671) $ 471,876 $ (5,913) Municipal securities 9,011 (199) 17,253 (538) 26,264 (737) U.S. Government agency securities 80,793 (459) 36,406 (459) 117,199 (918) U.S. Treasury securities 288,376 (4,117) 183,475 (4,665) 471,851 (8,782) Total $ 688,793 $ (7,017) $ 398,397 $ (9,333) $ 1,087,190 $ (16,350) |
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, 2023 (In thousands) Amortized Cost Fair Value Due within one year $ 846,346 $ 852,255 Due after one year through three years 795,822 785,496 Total $ 1,642,168 $ 1,637,751 |
GOODWILL AND PURCHASED INTANG_2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023: (In thousands) Wafer Inspection and Patterning Global Service and Support ( “ GSS ” ) Specialty Semiconductor Process Printed Circuit Board (“PCB”) and Display Component Inspection Total Balance as of June 30, 2023 $ 727,130 $ 25,908 $ 681,858 $ 830,349 $ 13,575 $ 2,278,820 Foreign currency adjustments (15) — — — — (15) Balance as of September 30, 2023 $ 727,115 $ 25,908 $ 681,858 $ 830,349 $ 13,575 $ 2,278,805 |
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, 2023 As of June 30, 2023 Category Range of Useful Lives (in years) Gross Accumulated Net Gross Accumulated Net Existing technology 4-8 $ 1,552,074 $ 887,902 $ 664,172 $ 1,536,826 $ 841,815 $ 695,011 Customer relationships 4-9 358,567 214,609 143,958 358,567 205,037 153,530 Trade name / Trademark 4-7 119,083 86,068 33,015 116,583 78,749 37,834 Order backlog and other <1-7 83,336 82,590 746 85,836 82,264 3,572 Intangible assets subject to amortization 2,113,060 1,271,169 841,891 2,097,812 1,207,865 889,947 In-process research and development 46,074 15,966 30,108 61,322 15,966 45,356 Total $ 2,159,134 $ 1,287,135 $ 871,999 $ 2,159,134 $ 1,223,831 $ 935,303 |
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) 2023 2022 Amortization expense - Costs of revenues $ 46,088 $ 45,066 Amortization expense - SG&A 17,216 20,128 Amortization expense - Research and development — 31 Total $ 63,304 $ 65,225 |
Schedule of Remaining Estimated Amortization Expense | Based on the purchased intangible assets gross carrying amount recorded as of September 30, 2023, the remaining estimated annual amortization expense is expected to be as follows: Fiscal year ending June 30: Amortization (In thousands) 2024 (remaining nine months) $ 177,836 2025 224,688 2026 208,775 2027 132,194 2028 49,727 2029 and thereafter 48,671 Total $ 841,891 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our debt as of September 30, 2023 and June 30, 2023: As of September 30, 2023 As of June 30, 2023 Amount Effective Amount Effective Fixed-rate 4.650% Senior Notes due on November 1, 2024 $ 750,000 4.682 % $ 750,000 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 4.650% Senior Notes due on July 15, 2032 1,000,000 4.657 % 1,000,000 4.657 % Fixed-rate 4.950% Senior Notes due on July 15, 2052 1,200,000 5.009 % 1,200,000 5.009 % Fixed-rate 5.250% Senior Notes due on July 15, 2062 800,000 5.259 % 800,000 5.259 % Total 5,950,000 5,950,000 Unamortized discount/premium, net (17,558) (17,848) Unamortized debt issuance costs (40,711) (41,416) Total $ 5,891,731 $ 5,890,736 Reported as: Long-term debt $ 5,891,731 $ 5,890,736 Total $ 5,891,731 $ 5,890,736 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Leases Cost | Supplemental cash flow information related to leases was as follows: Three Months Ended September 30, In thousands 2023 2022 Operating cash outflows from operating leases $ 10,002 $ 9,627 Right of use assets obtained in exchange for new operating lease liabilities $ 12,968 $ 9,220 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2023 were as follows: Fiscal Year Ending June 30: (In thousands) 2024 (remaining nine months) $ 30,560 2025 37,843 2026 29,918 2027 23,728 2028 15,664 2029 and thereafter 61,970 Total lease payments 199,683 Less imputed interest (25,487) Total $ 174,196 |
EQUITY, LONG-TERM INCENTIVE C_2
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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) Balance as of June 30, 2023 7,761 Restricted stock units granted (2) (386) Restricted stock units canceled 27 Balance as of September 30, 2023 7,402 __________________ (1) The number of restricted stock units (“RSU”) 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) Includes RSUs granted to senior management during the three months ended September 30, 2023 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 RSU”). This line item includes all such performance-based RSUs granted during the three months ended September 30, 2023 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, 2023 reflects the application of the multiplier described above). |
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) 2023 2022 Stock-based compensation expense by: Costs of revenues $ 7,669 $ 5,589 R&D 13,028 8,356 SG&A 28,075 21,037 Total stock-based compensation expense $ 48,772 $ 34,982 |
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, 2023: Shares (1) (In thousands) Weighted-Average Outstanding RSUs as of June 30, 2023 (2) 1,715 $ 312.40 Granted (3) 193 $ 501.15 Vested and released (309) $ 212.16 Forfeited (14) $ 342.70 Outstanding RSUs as of September 30, 2023 (2) 1,585 $ 354.61 __________________ (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, 2023 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, 2023). |
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, aggregate grant date fair value of RSUs 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) 2023 2022 Weighted-average grant date fair value per unit $ 501.15 $ 397.40 Grant date fair value of vested RSUs $ 65,524 $ 49,906 Tax benefits realized by us in connection with vested and released RSUs $ 16,054 $ 10,543 |
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, 2023 2022 Stock purchase plan: Expected stock price volatility 32.8 % 41.6 % Risk-free interest rate 5.1 % 1.1 % Dividend yield 1.1 % 1.8 % Expected life (in years) 0.5 0.5 |
Schedule of Tax Benefits Realized and Weighted-average fair value for the ESPP | There was no cash received from employees for the issuance of shares under the ESPP or shares purchased by employees through the ESPP in the three months ended September 30, 2023 and 2022. The following table shows 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, 2023 2022 Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP $ 1,365 $ 562 Weighted-average fair value per share based on Black-Scholes model $ 114.32 $ 73.31 |
STOCK REPURCHASE PROGRAM (Table
STOCK REPURCHASE PROGRAM (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Number of shares of common stock repurchased 956 257 Total cost of repurchases $ 459,093 $ 89,616 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 Numerator: Net income attributable to KLA $ 741,375 $ 1,025,991 Denominator: Weighted-average shares - basic, excluding unvested RSUs 136,412 141,829 Effect of dilutive RSUs and options 692 734 Weighted-average shares - diluted 137,104 142,563 Basic net income per share attributable to KLA $ 5.43 $ 7.23 Diluted net income per share attributable to KLA $ 5.41 $ 7.20 Anti-dilutive securities excluded from the computation of diluted net income per share 123 205 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Income before income taxes $ 851,711 $ 1,070,028 Provision for income taxes $ 110,336 $ 43,963 Effective tax rate 13.0 % 4.1 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Receivables sold under factoring agreements $ 45,607 $ 104,247 Proceeds from sales of LC $ — $ 24,651 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Derivatives Designated as Cash Flow Hedging Instruments: Rate lock agreements: Amounts included in the assessment of effectiveness $ — $ 937 Foreign exchange contracts: Amounts included in the assessment of effectiveness $ (1,533) $ 816 Amounts excluded from the assessment of effectiveness $ 52 $ 15 Derivatives Designated as Net Investment Hedging Instruments: Foreign exchange contracts (1) : $ 2,536 $ 3,679 __________________ (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, 2023 2022 (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 $ 2,396,956 $ 1,497,750 $ 74,234 $ (26,739) $ 2,724,424 $ 1,613,721 $ 74,395 $ (47,006) Gains (Losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from AOCI to earnings $ — $ — $ 937 $ — $ — $ — $ 937 $ — Foreign exchange contracts: Amount of gains (losses) reclassified from AOCI to earnings $ 3,649 $ 2,775 $ — $ — $ 14,915 $ (5,367) $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings $ (253) $ — $ — $ 52 $ (310) $ — $ — $ 455 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ (11,397) $ — $ — $ — $ 14,374 |
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 12 months as of the dates indicated below, were as follows: As of As of (In thousands) September 30, 2023 June 30, 2023 Cash flow hedge contracts - foreign currency Purchase $ 292,336 $ 218,315 Sell $ 149,964 $ 123,951 Net investment hedge contracts - foreign currency Sell $ 87,157 $ 87,157 Other foreign currency hedge contracts Purchase $ 610,168 $ 527,349 Sell $ 273,171 $ 204,902 |
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, 2023 June 30, 2023 Location September 30, 2023 June 30, 2023 (In thousands) Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts Other current assets $ 16,982 $ 24,498 Other current liabilities $ (6,141) $ (442) Total derivatives designated as hedging instruments 16,982 24,498 (6,141) (442) Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets 20,826 11,214 Other current liabilities (21,541) (11,664) Total derivatives not designated as hedging instruments 20,826 11,214 (21,541) (11,664) Total derivatives $ 37,808 $ 35,712 $ (27,682) $ (12,106) |
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) 2023 2022 Beginning AOCI $ 81,611 $ 77,018 Amount reclassified to earnings as net gains (7,108) (10,175) Net change in unrealized gains 1,055 5,447 Ending AOCI $ 75,558 $ 72,290 |
Schedule of Offsetting Derivative Assets | The information related to the offsetting arrangements for the periods indicated was as follows: As of September 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets (In thousands) 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 $ 37,808 $ — $ 37,808 $ (18,749) $ — $ 19,059 Derivatives - liabilities $ (27,682) $ — $ (27,682) $ 18,749 $ — $ (8,933) As of June 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets (In thousands) 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 $ 35,712 $ — $ 35,712 $ (8,968) $ — $ 26,744 Derivatives - liabilities $ (12,106) $ — $ (12,106) $ 8,968 $ — $ (3,138) |
Schedule of Offsetting Derivative Liabilities | The information related to the offsetting arrangements for the periods indicated was as follows: As of September 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets (In thousands) 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 $ 37,808 $ — $ 37,808 $ (18,749) $ — $ 19,059 Derivatives - liabilities $ (27,682) $ — $ (27,682) $ 18,749 $ — $ (8,933) As of June 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets (In thousands) 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 $ 35,712 $ — $ 35,712 $ (8,968) $ — $ 26,744 Derivatives - liabilities $ (12,106) $ — $ (12,106) $ 8,968 $ — $ (3,138) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Total revenues $ 3,362 $ 757 Total purchases $ 1,821 $ 245 |
SEGMENT REPORTING AND GEOGRAP_2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Results for Reportable Segments | The following is a summary of results for each of our three reportable segments for the indicated periods: Three Months Ended September 30, (In thousands) 2023 2022 Semiconductor Process Control: Revenues $ 2,135,478 $ 2,397,759 Segment gross profit 1,386,529 1,576,982 Specialty Semiconductor Process: Revenues 126,719 127,867 Segment gross profit 69,301 67,040 PCB, Display and Component Inspection: Revenues 136,043 200,745 Segment gross profit 39,820 85,674 Totals: Revenues for reportable segments $ 2,398,240 $ 2,726,371 Segment gross profit $ 1,495,650 $ 1,729,696 |
Schedule of Reconciliation of Total Reportable Segments Revenue to Total Revenue | The following table reconciles total reportable segment revenues to total revenues for the indicated periods: Three Months Ended September 30, (In thousands) 2023 2022 Total revenues for reportable segments $ 2,398,240 $ 2,726,371 Corporate allocations and effects of changes in foreign currency exchange rates (1,284) (1,947) Total revenues $ 2,396,956 $ 2,724,424 |
Schedule of Reconciliation of Total Segment Gross Profit to Income Before Income Taxes | The following table reconciles total segment gross profit to income before income taxes for the indicated periods: Three Months Ended September 30, (In thousands) 2023 2022 Total segment gross profit $ 1,495,650 $ 1,729,696 Acquisition-related charges, corporate allocations and effects of changes in foreign currency exchange rates (1) 45,585 46,498 R&D 311,214 318,515 SG&A 239,645 253,980 Interest expense 74,234 74,395 Loss on extinguishment of debt — 13,286 Other expense (income), net (26,739) (47,006) Income before income taxes $ 851,711 $ 1,070,028 __________________ |
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, 2023 2022 Revenues: China $ 1,025,944 43 % $ 839,661 31 % Taiwan 405,343 17 % 748,334 27 % North America 250,713 10 % 233,754 9 % Japan 227,377 10 % 217,709 8 % Korea 219,821 9 % 407,462 15 % Europe and Israel 168,436 7 % 164,073 6 % Rest of Asia 99,322 4 % 113,431 4 % Total $ 2,396,956 100 % $ 2,724,424 100 % |
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, 2023 2022 Revenues: Wafer Inspection $ 1,010,198 42 % $ 1,102,542 41 % Patterning 542,488 23 % 733,370 27 % Specialty Semiconductor Process 112,103 5 % 114,444 4 % PCB, Display and Component Inspection 71,164 3 % 134,443 5 % Services 560,292 23 % 528,815 19 % Other 100,711 4 % 110,810 4 % Total $ 2,396,956 100 % $ 2,724,424 100 % |
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, 2023 June 30, 2023 Land, property and equipment, net: United States $ 686,532 $ 672,561 Singapore 155,152 150,989 Israel 92,641 92,815 Europe 88,694 74,015 Rest of Asia 36,906 41,461 Total $ 1,059,925 $ 1,031,841 |
REVENUE - Schedule of Contract
REVENUE - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Accounts receivable, net | ||
Accounts receivable, net | $ 1,630,746 | $ 1,753,361 |
Change in accounts receivable, net | $ (122,615) | |
Percentage change in accounts receivable, net | (7.00%) | |
Contract assets | ||
Contract assets | $ 93,300 | 117,137 |
Change in contract assets | $ (23,837) | |
Percentage change in contract assets | (20.00%) | |
Contract liabilities | ||
Contract liabilities | $ 1,264,953 | $ 1,245,007 |
Change in contract liabilities | $ 19,946 | |
Percentage change in contract liabilities | 2% |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
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 | $ 69.8 | |
Revenue recognized in excess of amount billed to customer | 46.5 | |
Change in contract liabilities, revenue recognized | $ 601.1 | $ 489.5 |
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% | |
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% |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 10,850,000 | |
Customer deposits | 818,900 | |
Contract liabilities | $ 1,264,953 | $ 1,245,007 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
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]: 2023-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 40% | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 50% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Other current assets: | ||
Derivative assets | $ 37,808 | $ 35,712 |
Liabilities | ||
Derivative liabilities | (27,682) | (12,106) |
Contingent consideration payable | (5,500) | |
Cash excluded from fair value measurement | 311,900 | 298,600 |
Time deposits excluded from fair value measurement | 492,800 | 471,400 |
Time deposits, cash equivalents excluded from fair value measurement | 309,500 | 356,700 |
Recurring | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 2,544,651 | 2,473,107 |
Other current assets: | ||
Derivative assets | 37,808 | 35,712 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 248,455 | 256,846 |
Total financial assets | 2,830,914 | 2,765,665 |
Liabilities | ||
Derivative liabilities | (27,682) | (12,106) |
Contingent consideration payable | (5,528) | (6,447) |
Total financial liabilities | (33,210) | (18,553) |
Recurring | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 1,077,456 | 1,257,223 |
Recurring | U.S. Government agency securities | ||
Cash equivalents: | ||
Cash equivalents | 3,788 | |
Marketable securities: | ||
Marketable securities | 133,687 | 129,784 |
Recurring | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 12,740 | 11,500 |
Marketable securities: | ||
Marketable securities | 595,220 | 518,215 |
Recurring | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 681,245 | 502,650 |
Recurring | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 30,478 | 31,788 |
Recurring | Equity securities | ||
Marketable securities: | ||
Marketable securities | 13,825 | 18,159 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 1,698,693 | 1,828,331 |
Other current assets: | ||
Derivative assets | 0 | 0 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 223,621 | 198,639 |
Total financial assets | 1,922,314 | 2,026,970 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Contingent consideration payable | 0 | 0 |
Total financial liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 1,077,456 | 1,257,223 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government agency securities | ||
Cash equivalents: | ||
Cash equivalents | 0 | |
Marketable securities: | ||
Marketable securities | 133,687 | 127,715 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Marketable securities: | ||
Marketable securities | 473,725 | 425,234 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Marketable securities: | ||
Marketable securities | 13,825 | 18,159 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 845,958 | 644,776 |
Other current assets: | ||
Derivative assets | 37,808 | 35,712 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 24,834 | 58,207 |
Total financial assets | 908,600 | 738,695 |
Liabilities | ||
Derivative liabilities | (27,682) | (12,106) |
Contingent consideration payable | 0 | 0 |
Total financial liabilities | (27,682) | (12,106) |
Recurring | Significant Other Observable Inputs (Level 2) | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government agency securities | ||
Cash equivalents: | ||
Cash equivalents | 3,788 | |
Marketable securities: | ||
Marketable securities | 0 | 2,069 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 12,740 | 11,500 |
Marketable securities: | ||
Marketable securities | 121,495 | 92,981 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 681,245 | 502,650 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 30,478 | 31,788 |
Recurring | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Little or No Market Activity Inputs (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 |
Contingent consideration payable | (5,528) | (6,447) |
Total financial liabilities | (5,528) | (6,447) |
Recurring | Little or No Market Activity Inputs (Level 3) | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Recurring | Little or No Market Activity Inputs (Level 3) | U.S. Government agency securities | ||
Cash equivalents: | ||
Cash equivalents | 0 | |
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Little or No Market Activity Inputs (Level 3) | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Little or No Market Activity Inputs (Level 3) | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Little or No Market Activity Inputs (Level 3) | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Little or No Market Activity Inputs (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, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Accounts receivable, net: | |||
Accounts receivable, gross | $ 1,664,280 | $ 1,786,993 | |
Allowance for credit losses | (33,534) | (33,632) | |
Accounts receivable, net | 1,630,746 | 1,753,361 | |
Inventories: | |||
Customer service parts | 560,088 | 524,096 | |
Raw materials | 1,614,050 | 1,559,202 | |
Work-in-process | 635,045 | 578,864 | |
Finished goods | 198,522 | 214,622 | |
Inventories | 3,007,705 | 2,876,784 | |
Other current assets: | |||
Contract assets | 93,300 | 117,137 | |
Prepaid expenses | 120,553 | 121,204 | |
Deferred costs of revenues | 126,873 | 133,067 | |
Prepaid income and other taxes | 33,371 | 64,901 | |
Other current assets | 68,922 | 62,419 | |
Other current assets, total | 443,019 | 498,728 | |
Land, property and equipment, net: | |||
Land | 78,261 | 72,287 | |
Buildings and leasehold improvements | 862,733 | 825,975 | |
Machinery and equipment | 1,044,335 | 1,016,713 | |
Office furniture and fixtures | 59,221 | 58,036 | |
Construction-in-process | 169,306 | 168,817 | |
Land, property and equipment, gross | 2,213,856 | 2,141,828 | |
Less: accumulated depreciation | (1,153,931) | (1,109,987) | |
Land, property and equipment, net | 1,059,925 | 1,031,841 | |
Other non-current assets: | |||
Executive Deferred Savings Plan | 248,455 | 256,846 | |
Operating lease right of use assets | $ 218,053 | $ 208,706 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets | |
Other non-current assets | $ 158,341 | $ 171,910 | |
Other non-current assets | 624,849 | 637,462 | |
Other current liabilities: | |||
Customer deposits | 675,582 | 769,000 | |
Compensation and benefits | 472,768 | 370,536 | |
Income taxes payable | 517,768 | 383,012 | |
Executive Deferred Savings Plan | 248,818 | 258,223 | |
Interest payable | 65,299 | 105,270 | |
Operating lease liabilities | $ 35,514 | $ 34,042 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, total | Other current liabilities, total | |
Other liabilities and accrued expenses | $ 365,615 | $ 383,407 | |
Other current liabilities, total | 2,381,364 | 2,303,490 | |
Other non-current liabilities: | |||
Customer deposits | 143,339 | 156,874 | |
Income taxes payable | 267,185 | 322,113 | |
Operating lease liabilities | $ 138,682 | $ 138,354 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities, total | Other non-current liabilities, total | |
Pension liabilities | $ 60,821 | $ 63,672 | |
Other non-current liabilities | 129,075 | 132,045 | |
Other non-current liabilities, total | 739,102 | $ 813,058 | |
SG&A | |||
Other non-current liabilities: | |||
Expense associated with changes in the EDSP liability | (9,300) | $ (10,300) | |
Gain on deferred compensation plan assets | $ (9,500) | $ (10,300) |
FINANCIAL STATEMENT COMPONENT_3
FINANCIAL STATEMENT COMPONENTS - Accumulated Other Comprehensive Income (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ (64,627) |
Ending balance | (71,220) |
Unrealized Gains (Losses) on Available-for-Sale Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (12,797) |
Ending balance | (11,810) |
Unrealized Gains (Losses) on Derivatives | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 59,944 |
Ending balance | 52,211 |
Unrealized Gains (Losses) on Defined Benefit Plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (18,861) |
Ending balance | (18,619) |
Accumulated Other Comprehensive Income (Loss) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (36,341) |
Ending balance | $ (49,438) |
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, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) | ||
Revenues | $ 2,396,956 | $ 2,724,424 |
Costs of revenues and operating expenses | (1,497,750) | (1,613,721) |
Interest expense | (74,234) | (74,395) |
Net gains reclassified from AOCI | 741,375 | 1,025,991 |
Other expense (income), net | (26,739) | (47,006) |
Unrealized Gains (Losses) on Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) | ||
Reclassification adjustment from AOCI, net of tax | 300 | 400 |
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 | 3,396 | 14,605 |
Costs of revenues and operating expenses | 2,775 | (5,367) |
Interest expense | 937 | 937 |
Net gains reclassified from AOCI | 7,108 | 10,175 |
Reclassification out of accumulated other comprehensive income | Unrealized losses on available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Other expense (income), net | $ (12) | $ (174) |
MARKETABLE SECURITIES - Amortiz
MARKETABLE SECURITIES - Amortized Cost and Fair Value (Details) $ in Thousands | Sep. 30, 2023 USD ($) investment | Jun. 30, 2023 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, fair value | $ 1,637,751 | |
Money market funds and other | 1,077,456 | $ 1,257,223 |
Equity securities, amortized cost | 3,211 | 3,211 |
Equity securities, gross unrealized gains | 10,614 | 14,948 |
Equity securities, gross unrealized losses | 0 | 0 |
Equity securities, fair value | 13,825 | 18,159 |
Subtotal, amortized cost | 2,549,067 | 2,474,443 |
Subtotal, gross unrealized gains | 10,669 | 15,014 |
Subtotal, gross unrealized losses | (15,085) | (16,350) |
Subtotal, fair value | 2,544,651 | 2,473,107 |
Add: Time deposits | 492,767 | 471,439 |
Cash equivalents, amortized cost | 1,399,666 | 1,629,248 |
Cash equivalents, gross unrealized gains | 1 | 4 |
Cash equivalents, gross unrealized losses | 0 | 0 |
Cash equivalents, fair value | 1,399,667 | 1,629,252 |
Marketable securities, amortized cost | 1,642,168 | 1,316,634 |
Marketable securities, gross unrealized gains | 10,668 | 15,010 |
Marketable securities, gross unrealized losses | (15,085) | (16,350) |
Marketable securities, fair value | $ 1,637,751 | 1,315,294 |
Number of investments in an unrealized loss position | investment | 591 | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 687,213 | 508,511 |
Available-for-sale securities, gross unrealized gains | 48 | 52 |
Available-for-sale securities, gross unrealized losses | (6,016) | (5,913) |
Available-for-sale securities, fair value | 681,245 | 502,650 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 31,032 | 32,525 |
Available-for-sale securities, gross unrealized gains | 2 | 0 |
Available-for-sale securities, gross unrealized losses | (556) | (737) |
Available-for-sale securities, fair value | 30,478 | 31,788 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 134,563 | 134,486 |
Available-for-sale securities, gross unrealized gains | 0 | 4 |
Available-for-sale securities, gross unrealized losses | (876) | (918) |
Available-for-sale securities, fair value | 133,687 | 133,572 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 615,592 | 538,487 |
Available-for-sale securities, gross unrealized gains | 5 | 10 |
Available-for-sale securities, gross unrealized losses | (7,637) | (8,782) |
Available-for-sale securities, fair value | $ 607,960 | $ 529,715 |
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, 2023 | Jun. 30, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 892,435 | |
Less than 12 Months, Gross Unrealized Losses | (6,111) | |
12 Months or Greater, Fair Value | 449,457 | |
12 Months or Greater, Gross Unrealized Losses | (8,974) | |
Fair Value | 1,341,892 | |
Gross Unrealized Losses | (15,085) | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 463,017 | $ 310,613 |
Less than 12 Months, Gross Unrealized Losses | (2,772) | (2,242) |
12 Months or Greater, Fair Value | 165,161 | 161,263 |
12 Months or Greater, Gross Unrealized Losses | (3,244) | (3,671) |
Fair Value | 628,178 | 471,876 |
Gross Unrealized Losses | (6,016) | (5,913) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 11,480 | 9,011 |
Less than 12 Months, Gross Unrealized Losses | (147) | (199) |
12 Months or Greater, Fair Value | 14,834 | 17,253 |
12 Months or Greater, Gross Unrealized Losses | (409) | (538) |
Fair Value | 26,314 | 26,264 |
Gross Unrealized Losses | (556) | (737) |
Sovereign securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 80,793 | |
Less than 12 Months, Gross Unrealized Losses | (459) | |
12 Months or Greater, Fair Value | 36,406 | |
12 Months or Greater, Gross Unrealized Losses | (459) | |
Fair Value | 117,199 | |
Gross Unrealized Losses | (918) | |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 112,180 | 288,376 |
Less than 12 Months, Gross Unrealized Losses | (736) | (4,117) |
12 Months or Greater, Fair Value | 19,667 | 183,475 |
12 Months or Greater, Gross Unrealized Losses | (140) | (4,665) |
Fair Value | 131,847 | 471,851 |
Gross Unrealized Losses | (876) | (8,782) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 305,758 | 688,793 |
Less than 12 Months, Gross Unrealized Losses | (2,456) | (7,017) |
12 Months or Greater, Fair Value | 249,795 | 398,397 |
12 Months or Greater, Gross Unrealized Losses | (5,181) | (9,333) |
Fair Value | 555,553 | 1,087,190 |
Gross Unrealized Losses | $ (7,637) | $ (16,350) |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Amortized Cost | ||
Due within one year | $ 846,346 | |
Due after one year through three years | 795,822 | |
Amortized Cost | 1,642,168 | $ 1,316,634 |
Fair Value | ||
Due within one year | 852,255 | |
Due after one year through three years | 785,496 | |
Fair Value | $ 1,637,751 |
BUSINESS COMBINATIONS AND DIS_2
BUSINESS COMBINATIONS AND DISPOSITIONS - Business Combinations (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 09, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Business Acquisition | ||||
Total purchase consideration, paid in cash | $ 0 | $ 27,144 | ||
Goodwill | 2,278,805 | $ 2,278,820 | ||
Contingent consideration | $ 5,500 | |||
August 9, 2022 Acquisition | ||||
Business Acquisition | ||||
Total purchase consideration, paid in cash | $ 32,700 | |||
Identifiable intangible assets acquired | 30,000 | |||
Net tangible assets acquired | 2,300 | |||
Deferred tax liabilities assumed | 6,500 | |||
Goodwill | $ 6,800 |
BUSINESS COMBINATIONS AND DIS_3
BUSINESS COMBINATIONS AND DISPOSITIONS - Business Dispositions (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 11, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Gain on sale of business | $ 0 | $ 29,687 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Orbograph | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Consideration from sale of business | $ 110,000 | |||
Net cash proceeds from disposition | 75,400 | |||
Gain on sale of business | 29,700 | |||
Tangible assets disposed | 26,500 | |||
Liabilities disposed | 30,500 | |||
Goodwill and intangible assets disposed | $ 61,200 | |||
Orbograph | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Non-controlling interest, ownership | 94% |
GOODWILL AND PURCHASED INTANG_3
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Additional Information (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) segment | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Number of reportable segments | 3 |
Number of operating segments | 5 |
Goodwill impairment | $ | $ 0 |
GOODWILL AND PURCHASED INTANG_4
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,278,820 |
Foreign currency adjustments | (15) |
Ending balance | 2,278,805 |
Wafer Inspection and Patterning | |
Goodwill [Roll Forward] | |
Beginning balance | 727,130 |
Foreign currency adjustments | (15) |
Ending balance | 727,115 |
Global Service and Support (“GSS”) | |
Goodwill [Roll Forward] | |
Beginning balance | 25,908 |
Foreign currency adjustments | 0 |
Ending balance | 25,908 |
Specialty Semiconductor Process | |
Goodwill [Roll Forward] | |
Beginning balance | 681,858 |
Foreign currency adjustments | 0 |
Ending balance | 681,858 |
Printed Circuit Board (“PCB”) and Display | |
Goodwill [Roll Forward] | |
Beginning balance | 830,349 |
Foreign currency adjustments | 0 |
Ending balance | 830,349 |
Component Inspection | |
Goodwill [Roll Forward] | |
Beginning balance | 13,575 |
Foreign currency adjustments | 0 |
Ending balance | $ 13,575 |
GOODWILL AND PURCHASED INTANG_5
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | $ 2,113,060 | $ 2,097,812 |
Intangible assets, gross | 2,159,134 | 2,159,134 |
Intangible assets subject to amortization, accumulated amortization and impairment | 1,271,169 | 1,207,865 |
Accumulated Amortization and Impairment | 1,287,135 | 1,223,831 |
Total | 841,891 | 889,947 |
Purchased intangible assets, net | 871,999 | 935,303 |
In-process research and development | ||
Purchased Intangible Assets | ||
Indefinite-lived intangible assets, gross | 46,074 | 61,322 |
Indefinite-lived intangible assets, other accumulated adjustments | 15,966 | 15,966 |
Indefinite-lived intangible assets, net | 30,108 | 45,356 |
Existing technology | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 1,552,074 | 1,536,826 |
Intangible assets subject to amortization, accumulated amortization and impairment | 887,902 | 841,815 |
Total | 664,172 | 695,011 |
Customer relationships | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 358,567 | 358,567 |
Intangible assets subject to amortization, accumulated amortization and impairment | 214,609 | 205,037 |
Total | 143,958 | 153,530 |
Trade name / Trademark | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 119,083 | 116,583 |
Intangible assets subject to amortization, accumulated amortization and impairment | 86,068 | 78,749 |
Total | 33,015 | 37,834 |
Order backlog and other | ||
Purchased Intangible Assets | ||
Intangible assets subject to amortization, gross | 83,336 | 85,836 |
Intangible assets subject to amortization, accumulated amortization and impairment | 82,590 | 82,264 |
Total | $ 746 | $ 3,572 |
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 | Order 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 | Order backlog and other | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 7 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, 2023 | Sep. 30, 2022 | |
Purchased Intangible Assets | ||
Amortization of intangible assets | $ 63,304 | $ 65,225 |
Amortization expense - Costs of revenues | ||
Purchased Intangible Assets | ||
Amortization of intangible assets | 46,088 | 45,066 |
Amortization expense - SG&A | ||
Purchased Intangible Assets | ||
Amortization of intangible assets | 17,216 | 20,128 |
Amortization expense - Research and development | ||
Purchased Intangible Assets | ||
Amortization of intangible assets | $ 0 | $ 31 |
GOODWILL AND PURCHASED INTANG_7
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Remaing Estimated Amortization Expense | ||
2024 (remaining nine months) | $ 177,836 | |
2025 | 224,688 | |
2026 | 208,775 | |
2027 | 132,194 | |
2028 | 49,727 | |
2029 | 48,671 | |
Total | $ 841,891 | $ 889,947 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument | |||
Total | $ 5,950,000 | $ 5,950,000 | |
Unamortized discount/premium, net | (17,558) | (17,848) | |
Unamortized debt issuance costs | (40,711) | (41,416) | |
Total | 5,891,731 | 5,890,736 | |
Long-term debt | $ 5,891,731 | 5,890,736 | |
Fixed-rate 4.650% Senior Notes due on November 1, 2024 | Senior notes | |||
Debt Instrument | |||
Stated interest rate | 4.65% | ||
Debt outstanding | $ 750,000 | $ 750,000 | |
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% | ||
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 4.650% Senior Notes due on July 15, 2032 | Senior notes | |||
Debt Instrument | |||
Stated interest rate | 4.65% | 4.65% | |
Debt outstanding | $ 1,000,000 | $ 1,000,000 | |
Effective interest rate | 4.657% | 4.657% | |
Fixed-rate 4.950% Senior Notes due on July 15, 2052 | Senior notes | |||
Debt Instrument | |||
Stated interest rate | 4.95% | 4.95% | |
Debt outstanding | $ 1,200,000 | $ 1,200,000 | |
Effective interest rate | 5.009% | 5.009% | |
Fixed-rate 5.250% Senior Notes due on July 15, 2062 | Senior notes | |||
Debt Instrument | |||
Stated interest rate | 5.25% | 5.25% | |
Debt outstanding | $ 800,000 | $ 800,000 | |
Effective interest rate | 5.259% | 5.259% |
DEBT - Senior Notes and Debt Re
DEBT - Senior Notes and Debt Redemption (Details) - USD ($) | 3 Months Ended | |||||||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Jul. 31, 2022 | Jun. 30, 2022 | Feb. 29, 2020 | Mar. 31, 2019 | Nov. 30, 2014 | |
Debt Instrument | ||||||||
Loss on extinguishment of debt | $ 0 | $ 13,286,000 | ||||||
Senior notes | ||||||||
Debt Instrument | ||||||||
Redemption price | 101% | |||||||
Fair value disclosure | $ 5,310,000,000 | $ 5,690,000,000 | ||||||
Senior notes | 2022 Senior Notes | ||||||||
Debt Instrument | ||||||||
Debt face amount | $ 3,000,000,000 | |||||||
Senior notes | Fixed-rate 4.650% Senior Notes due on July 15, 2032 | ||||||||
Debt Instrument | ||||||||
Debt face amount | $ 1,000,000,000 | |||||||
Stated interest rate | 4.65% | 4.65% | ||||||
Senior notes | Fixed-rate 4.950% Senior Notes due on July 15, 2052 | ||||||||
Debt Instrument | ||||||||
Debt face amount | $ 1,200,000,000 | |||||||
Stated interest rate | 4.95% | 4.95% | ||||||
Senior notes | Fixed-rate 5.250% Senior Notes due on July 15, 2062 | ||||||||
Debt Instrument | ||||||||
Debt face amount | $ 800,000,000 | |||||||
Stated interest rate | 5.25% | 5.25% | ||||||
Senior notes | 2024 Senior Notes | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 4.65% | |||||||
Debt repurchase amount | $ 500,000,000 | |||||||
Loss on extinguishment of debt | $ 13,300,000 | |||||||
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 |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) - Line of credit - Revolving credit facility | 1 Months Ended | 3 Months Ended |
Nov. 30, 2017 | Sep. 30, 2023 USD ($) extension quarter | |
Debt Instrument | ||
Maximum borrowing capacity | $ 1,500,000,000 | |
Increase of borrowing capacity | 250,000,000 | |
Debt outstanding | $ 0 | |
Debt number of extension | extension | 2 | |
Extension period (in year) | 1 year | |
Commitment fee percentage (in bps) | 0.085% | |
Maximum leverage ratio | 3.50 | |
Covenant compliance, number of consecutive quarters | quarter | 4 | |
Maximum leverage ratio under a material acquisition or series of material acquisitions | 4 | |
Minimum | ||
Debt Instrument | ||
Commitment fee percentage (in bps) | 0.045% | |
Maximum | ||
Debt Instrument | ||
Commitment fee percentage (in bps) | 0.125% | |
SOFR | ||
Debt Instrument | ||
Basis spread on variable rate (in bps) | 0.10% | 0.975% |
SOFR | Minimum | ||
Debt Instrument | ||
Basis spread on variable rate (in bps) | 0.75% | |
SOFR | Maximum | ||
Debt Instrument | ||
Basis spread on variable rate (in bps) | 1.25% | |
Alternative base rate | Minimum | ||
Debt Instrument | ||
Basis spread on variable rate (in bps) | 0% | |
Alternative base rate | Maximum | ||
Debt Instrument | ||
Basis spread on variable rate (in bps) | 0.25% |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Total lease expense | $ 12.4 | $ 9.4 | |
Operating leases, weighted average remaining lease term | 6 years 7 months 6 days | 6 years 8 months 12 days | |
Operating leases, weighted average discount rate | 3.43% | 3.36% | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 29 years |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 10,002 | $ 9,627 |
Right of use assets obtained in exchange for new operating lease liabilities | $ 12,968 | $ 9,220 |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Operating Leases, After Adoption of 842 | |
2024 (remaining nine months) | $ 30,560 |
2025 | 37,843 |
2026 | 29,918 |
2027 | 23,728 |
2028 | 15,664 |
2029 | 61,970 |
Total lease payments | 199,683 |
Less imputed interest | (25,487) |
Total | $ 174,196 |
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 shares in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
2004 Plan | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 7,402 | 7,761 |
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, 2023 shares | |
Restricted stock unit, Performance-based and Service-based | Senior Management | |
Available For Grant | |
Restricted stock units granted (in shares) | (200) |
2004 Plan | |
Available For Grant | |
Beginning balance (in shares) | 7,761 |
Restricted stock units granted (in shares) | (386) |
Restricted stock units canceled (in shares) | 27 |
Ending balance (in shares) | 7,402 |
Impact on share reserve multiplier | 2 |
2004 Plan | Restricted stock unit, Performance-based and Service-based | |
Available For Grant | |
Ending balance (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, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Stock-based compensation expense | |||
Total stock-based compensation expense | $ 48,772 | $ 34,982 | |
Stock-based compensation capitalized as inventory | 17,500 | $ 16,700 | |
Costs of revenues | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 7,669 | 5,589 | |
R&D | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 13,028 | 8,356 | |
SG&A | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | $ 28,075 | $ 21,037 |
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, 2023 USD ($) Installment $ / shares shares | Sep. 30, 2022 $ / shares | Jun. 30, 2023 shares | |
Restricted stock units | |||
Weighted-Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ / shares | $ 501.15 | $ 397.40 | |
Unrecognized stock-based compensation balance | $ | $ 417.3 | ||
Estimated weighted-average amortization period | 1 year 8 months 12 days | ||
Intrinsic value | $ | $ 726.8 | ||
Restricted stock unit, Service-based | Minimum | |||
Weighted-Average Grant Date Fair Value | |||
Share-based vesting period | 2 years | ||
Restricted stock unit, Service-based | Maximum | |||
Weighted-Average Grant Date Fair Value | |||
Share-based vesting period | 4 years | ||
Restricted Stock Unit, Market-based and Service-based | |||
Weighted-Average Grant Date Fair Value | |||
Service and performance-based, number of equal vesting installments | Installment | 3 | ||
Restricted Stock Unit, Market-based and Service-based | Minimum | |||
Weighted-Average Grant Date Fair Value | |||
Share-based vesting period | 3 years | ||
Restricted Stock Unit, Market-based and Service-based | Maximum | |||
Weighted-Average Grant Date Fair Value | |||
Share-based vesting period | 4 years | ||
2004 Plan | |||
Shares | |||
Granted (in shares) | 386 | ||
Forfeited (in shares) | (27) | ||
Weighted-Average Grant Date Fair Value | |||
Number of shares available for grant (in shares) | 7,402 | 7,761 | |
2004 Plan | Restricted stock units | |||
Shares | |||
Outstanding restricted stock units, beginning (in shares) | 1,715 | ||
Granted (in shares) | 193 | ||
Vested and released (in shares) | (309) | ||
Forfeited (in shares) | (14) | ||
Outstanding restricted stock units, ending (in shares) | 1,585 | ||
Weighted-Average Grant Date Fair Value | |||
Outstanding restricted stock units, beginning (in dollars per share) | $ / shares | $ 312.40 | ||
Granted (in dollars per share) | $ / shares | 501.15 | ||
Vested and released (in dollars per share) | $ / shares | 212.16 | ||
Forfeited (in dollars per share) | $ / shares | 342.70 | ||
Outstanding restricted stock units, ending (in dollars per share) | $ / shares | $ 354.61 | ||
2004 Plan | Restricted stock unit, Performance-based and Service-based | |||
Weighted-Average Grant Date Fair Value | |||
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, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average grant date fair value per unit (in dollars per share) | $ 501.15 | $ 397.40 |
Grant date fair value of vested RSUs | $ 65,524 | $ 49,906 |
Tax benefits realized by us in connection with vested and released RSUs | $ 16,054 | $ 10,543 |
EQUITY, LONG-TERM INCENTIVE C_8
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Cash-Based Long-Term Incentive Compensation (Details) - Cash LTI Plan $ in Millions | 3 Months Ended | |
Sep. 30, 2023 USD ($) Installment | Sep. 30, 2022 USD ($) | |
Cash Long-Term Incentive Plan | ||
Cash-based long-term incentive plan, authorized amount | $ 0.1 | $ 0.1 |
Cash long-term incentive plan, compensation expense | 18.5 | $ 19.5 |
Cash long-term incentive plan, unrecognized compensation balance | $ 132.8 | |
Minimum | ||
Cash Long-Term Incentive Plan | ||
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 | ||
Cash long-term incentive plan, equal vesting installments | Installment | 4 | |
Cash long-term incentive plan, percentage of equal vesting installments | 25% | |
Cash long-term incentive plan, vesting period | 4 years |
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 | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
ESPP, offering period | 6 months | |
Employee Stock Purchase Plan Additional Information | ||
ESPP maximum annual share replenishment (in shares) | 2,000,000 | |
Employee Stock Purchase Plan | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
ESPP maximum employee subscription rate | 15% | |
ESPP, discount from market price, lesser of commencement of offering period or purchase date | 85% | |
Stock purchase plan: | ||
Expected stock price volatility | 32.80% | 41.60% |
Risk-free interest rate | 5.10% | 1.10% |
Dividend yield | 1.10% | 1.80% |
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 | $ 1,365 | $ 562 |
Weighted-average fair value per share based on Black-Scholes model (in dollars per share) | $ 114.32 | $ 73.31 |
Number of shares available for grant (in shares) | 2,200,000 |
EQUITY, LONG-TERM INCENTIVE _10
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Quarterly Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Sep. 01, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Dividends Payable | ||||
Cash dividends paid per share (in dollars per share) | $ 1.30 | |||
Payment of dividends | $ 181.5 | $ 188 | ||
Restricted stock units | ||||
Dividends Payable | ||||
Dividends payable | $ 9.9 | $ 12.2 |
EQUITY, LONG-TERM INCENTIVE _11
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Non-Controlling Interest (Details) | Jun. 30, 2022 |
Orbograph | |
Noncontrolling Interest [Line Items] | |
Non-controlling interest, ownership | 94% |
STOCK REPURCHASE PROGRAM - Addi
STOCK REPURCHASE PROGRAM - Additional Information (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Equity [Abstract] | |
Increase of stock repurchase program authorized amount | $ 2,000 |
Remaining shares authorized to be repurchased, amount | $ 3,450 |
STOCK REPURCHASE PROGRAM - Summ
STOCK REPURCHASE PROGRAM - Summary of Share Repurchase Transactions (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||
Number of shares of common stock repurchased (in shares) | 956 | 257 |
Total cost of repurchases | $ 459,093 | $ 89,616 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||
Net income | $ 741,375 | $ 1,025,991 |
Denominator: | ||
Weighted-average shares - basic, excluding unvested RSU's (in shares) | 136,412 | 141,829 |
Effect of dilutive RSUs and options (in shares) | 692 | 734 |
Weighted-average shares - diluted (in shares) | 137,104 | 142,563 |
Basic net income per share attributable to KLA (in dollars per share) | $ 5.43 | $ 7.23 |
Diluted net income per share attributable to KLA (in dollars per share) | $ 5.41 | $ 7.20 |
Anti-dilutive securities excluded from the computation of diluted net income per share (in shares) | 123 | 205 |
INCOME TAXES - Details of Incom
INCOME TAXES - Details of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 851,711 | $ 1,070,028 |
Provision for income taxes | $ 110,336 | $ 43,963 |
Effective tax rate | 13% | 4.10% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Receivables sold under factoring agreements | $ 45,607 | $ 104,247 |
Proceeds from sales of LC | $ 0 | $ 24,651 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2023 USD ($) Installment | |
Commitments and Contingencies | |
Purchase commitments | $ 2,300 |
Majority outstanding purchase commitment, period due (in months) | 12 months |
Cash-based long-term incentive plan, committed amount | $ 168.8 |
Guarantee arrangements to fund customs guarantees for VAT and other operating requirements | 74.2 |
Outstanding guarantee arrangements to fund customs authorities for VAT and other operating requirements | $ 41.2 |
Minimum | Cash LTI Plan | |
Commitments and Contingencies | |
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 LTI Plan | |
Commitments and Contingencies | |
Cash long-term incentive plan, equal vesting installments | Installment | 4 |
Cash long-term incentive plan, percentage of equal vesting installments | 25% |
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, 2023 USD ($) derivativeInstrument | Sep. 30, 2022 USD ($) | |
Derivative | ||
Amount of gains (losses) reclassified from AOCI to earnings | $ 7,108 | $ 10,175 |
Rate lock agreements | ||
Derivative | ||
Number of derivative instruments held | derivativeInstrument | 4 | |
Amount of gains (losses) reclassified from AOCI to earnings | $ 900 | $ 900 |
Derivatives designated as hedging instruments | Cash Flow Hedging | Rate lock agreements | ||
Derivative | ||
Unamortized portion of the fair value of derivative contracts | $ 50,100 | |
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, 2023 | Sep. 30, 2022 | |
Derivative | ||
Amounts included in the assessment of effectiveness | $ (1,481,000) | $ 1,768,000 |
Rate lock agreements | Cash Flow Hedging | ||
Derivative | ||
Amounts included in the assessment of effectiveness | 0 | 937,000 |
Foreign exchange contracts | Cash Flow Hedging | ||
Derivative | ||
Amounts included in the assessment of effectiveness | (1,533,000) | 816,000 |
Amounts excluded from the assessment of effectiveness | 52,000 | 15,000 |
Foreign exchange contracts | Net investment hedging | ||
Derivative | ||
Amounts excluded from the assessment of effectiveness | 0 | 0 |
Gains (losses) on derivatives in net investment hedging recognized in OCI | $ 2,536,000 | $ 3,679,000 |
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, 2023 | Sep. 30, 2022 | |
Derivative Instruments | ||
Revenues | $ 2,396,956 | $ 2,724,424 |
Costs of revenues and operating expenses | 1,497,750 | 1,613,721 |
Interest expense | 74,234 | 74,395 |
Other expense (income), net | (26,739) | (47,006) |
Amount of gains (losses) reclassified from AOCI to earnings | 7,108 | 10,175 |
Rate lock agreements | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 900 | 900 |
Rate lock agreements | Revenues | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 0 | 0 |
Rate lock agreements | Costs of Revenues and Operating Expenses | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 0 | 0 |
Rate lock agreements | Interest Expense | ||
Derivative Instruments | ||
Amount of gains (losses) reclassified from AOCI to earnings | 937 | 937 |
Rate lock agreements | 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 | 3,649 | 14,915 |
Amount excluded from the assessment of effectiveness recognized in earnings | (253) | (310) |
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 | 2,775 | (5,367) |
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 | 52 | 455 |
Amount of gains (losses) recognized in earnings | $ (11,397) | $ 14,374 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Notional Amount (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Derivative | ||
Remaining maturity | 12 months | 12 months |
Derivatives designated as hedging instruments | Purchase | Other foreign currency hedge contracts | ||
Derivative | ||
Derivative, notional amount | $ 610,168 | $ 527,349 |
Derivatives designated as hedging instruments | Purchase | Cash Flow Hedging | Foreign exchange contracts | ||
Derivative | ||
Derivative, notional amount | 292,336 | 218,315 |
Derivatives designated as hedging instruments | Sell | Other foreign currency hedge contracts | ||
Derivative | ||
Derivative, notional amount | 273,171 | 204,902 |
Derivatives designated as hedging instruments | Sell | Cash Flow Hedging | Foreign exchange contracts | ||
Derivative | ||
Derivative, notional amount | 149,964 | 123,951 |
Derivatives designated as hedging instruments | Sell | Net Investment Hedging | Foreign exchange contracts | ||
Derivative | ||
Derivative, notional amount | $ 87,157 | $ 87,157 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | $ 37,808 | $ 35,712 |
Liability derivatives fair value | (27,682) | (12,106) |
Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 37,808 | 35,712 |
Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | (27,682) | (12,106) |
Derivatives designated as hedging instruments | Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 16,982 | 24,498 |
Derivatives designated as hedging instruments | Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | (6,141) | (442) |
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 | 20,826 | 11,214 |
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 | (21,541) | (11,664) |
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 | 16,982 | 24,498 |
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 | (6,141) | (442) |
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 | 20,826 | 11,214 |
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 | $ (21,541) | $ (11,664) |
DERIVATIVE INSTRUMENTS AND HE_8
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Changes of OCI, Before Taxes, Related to Derivatives (Details) - AOCI derivative - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 81,611 | $ 77,018 |
Amount reclassified to earnings as net gains | (7,108) | (10,175) |
Net change in unrealized gains | 1,055 | 5,447 |
Ending balance | $ 75,558 | $ 72,290 |
DERIVATIVE INSTRUMENTS AND HE_9
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Derivatives - assets | ||
Derivative - assets, Gross Amounts of Derivatives | $ 37,808 | $ 35,712 |
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 | 37,808 | 35,712 |
Derivatives - assets, Financial Instruments | (18,749) | (8,968) |
Derivatives - assets, Cash Collateral Received | 0 | 0 |
Derivatives - assets, Net Amount | 19,059 | 26,744 |
Derivatives - liabilities | ||
Derivatives - liabilities, Gross Amounts of Derivatives | (27,682) | (12,106) |
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 | (27,682) | (12,106) |
Derivatives - liabilities, Financial Instruments | 18,749 | 8,968 |
Derivatives - liabilities, Cash Collateral Received | 0 | 0 |
Derivatives - liabilities, Net Amount | $ (8,933) | $ (3,138) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | |||
Total revenues | $ 2,396,956 | $ 2,724,424 | |
Total purchases | 1,821 | 245 | |
Accounts receivable, net | 1,630,746 | $ 1,753,361 | |
Accounts payable | 363,662 | 371,026 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Total revenues | 3,362 | $ 757 | |
Accounts receivable, net | 2,100 | 1,000 | |
Accounts payable | $ 1,700 | $ 0 |
SEGMENT REPORTING AND GEOGRAP_3
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Additional Information (Details) - segment | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting and Geographic Information | ||
Number of reportable segments | 3 | |
Number of operating segments | 5 | |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Largest Customer | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 20% | |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Second Largest Customer | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 11% | 11% |
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 |
SEGMENT REPORTING AND GEOGRAP_4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Summary of Results for Reportable Segments (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Segment Reporting and Geographic Information | ||
Number of reportable segments | segment | 3 | |
Revenues | $ 2,396,956 | $ 2,724,424 |
Operating segments | ||
Segment Reporting and Geographic Information | ||
Revenues | 2,398,240 | 2,726,371 |
Segment gross profit | 1,495,650 | 1,729,696 |
Operating segments | Semiconductor Process Control: | ||
Segment Reporting and Geographic Information | ||
Revenues | 2,135,478 | 2,397,759 |
Segment gross profit | 1,386,529 | 1,576,982 |
Operating segments | Specialty Semiconductor Process | ||
Segment Reporting and Geographic Information | ||
Revenues | 126,719 | 127,867 |
Segment gross profit | 69,301 | 67,040 |
Operating segments | PCB, Display and Component Inspection | ||
Segment Reporting and Geographic Information | ||
Revenues | 136,043 | 200,745 |
Segment gross profit | $ 39,820 | $ 85,674 |
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, 2023 | Sep. 30, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 2,396,956 | $ 2,724,424 |
Total revenues for reportable segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 2,398,240 | 2,726,371 |
Corporate allocations and effects of changes in foreign currency exchange rates | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ (1,284) | $ (1,947) |
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, 2023 | Sep. 30, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Acquisition-related charges, corporate allocations, and effects of changes in foreign currency exchange rates | $ 45,585 | $ 46,498 |
R&D | 311,214 | 318,515 |
SG&A | 239,645 | 253,980 |
Interest expense | 74,234 | 74,395 |
Loss on extinguishment of debt | 0 | 13,286 |
Other expense (income), net | (26,739) | (47,006) |
Income before income taxes | 851,711 | 1,070,028 |
Operating segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segment gross profit | $ 1,495,650 | $ 1,729,696 |
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, 2023 | Sep. 30, 2022 | |
Segment Reporting and Geographic Information | ||
Revenues | $ 2,396,956 | $ 2,724,424 |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 100% | 100% |
China | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 1,025,944 | $ 839,661 |
China | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 43% | 31% |
Taiwan | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 405,343 | $ 748,334 |
Taiwan | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 17% | 27% |
Korea | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 219,821 | $ 407,462 |
Korea | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 9% | 15% |
North America | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 250,713 | $ 233,754 |
North America | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 10% | 9% |
Japan | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 227,377 | $ 217,709 |
Japan | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 10% | 8% |
Europe and Israel | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 168,436 | $ 164,073 |
Europe and Israel | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 7% | 6% |
Rest of Asia | ||
Segment Reporting and Geographic Information | ||
Revenues | $ 99,322 | $ 113,431 |
Rest of Asia | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Segment Reporting and Geographic Information | ||
Concentration risk, percentage | 4% | 4% |
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, 2023 | Sep. 30, 2022 | |
Revenue from External Customer | ||
Revenues | $ 2,396,956 | $ 2,724,424 |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 100% | 100% |
Wafer Inspection | ||
Revenue from External Customer | ||
Revenues | $ 1,010,198 | $ 1,102,542 |
Wafer Inspection | Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 42% | 41% |
Patterning | ||
Revenue from External Customer | ||
Revenues | $ 542,488 | $ 733,370 |
Patterning | Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 23% | 27% |
Specialty Semiconductor Process | ||
Revenue from External Customer | ||
Revenues | $ 112,103 | $ 114,444 |
Specialty Semiconductor Process | Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 5% | 4% |
PCB, Display and Component Inspection | ||
Revenue from External Customer | ||
Revenues | $ 71,164 | $ 134,443 |
PCB, Display and Component Inspection | Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 3% | 5% |
Services | ||
Revenue from External Customer | ||
Revenues | $ 560,292 | $ 528,815 |
Services | Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 23% | 19% |
Other | ||
Revenue from External Customer | ||
Revenues | $ 100,711 | $ 110,810 |
Other | Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue from External Customer | ||
Concentration risk, percentage | 4% | 4% |
SEGMENT REPORTING AND GEOGRAP_9
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Land, Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | $ 1,059,925 | $ 1,031,841 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 686,532 | 672,561 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 155,152 | 150,989 |
Israel | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 92,641 | 92,815 |
Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 88,694 | 74,015 |
Rest of Asia | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | $ 36,906 | $ 41,461 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 0.6 | $ 16.2 | |
Restructuring reserve | $ 3 | $ 11 |