KLA CORPKLAC

KLA CORP Leases Disclosure

10-KFiled Aug 8, 20252 min read
LEASES
We have operating leases for facilities, vehicles and other equipment. Our facility leases are primarily used for administrative functions, R&D, manufacturing, and storage and distribution. Our finance leases are not significant.
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 27 years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised.
Lease expense was $51.5 million, $54.6 million and $41.8 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. Expense related to short-term leases, which are not recorded on the Consolidated Balance Sheets, was not material for the fiscal years ended June 30, 2025 and 2024. As of June 30, 2025 and 2024, the weighted-average remaining lease term was 6.2 years and 6.7 years, respectively, and the weighted-average discount rate for operating leases was 4.06% and 4.30%, as of June 30, 2025 and 2024, respectively.
Supplemental cash flow information related to leases was as follows:
Year Ended June 30,
(In thousands)20252024
Operating cash outflows from operating leases$47,183 $41,405 
ROU assets obtained in exchange for new operating lease liabilities$46,018 $62,505 
Maturities of lease liabilities as of June 30, 2025 were as follows:
Fiscal Year Ending June 30:Amount
(In thousands)
2026$53,182 
202747,113 
202828,659 
202924,033 
203021,503 
2031 and thereafter59,562 
Total lease payments234,052 
Less imputed interest(30,027)
Total$204,025 
As of June 30, 2025, we did not have any material leases that had not yet commenced.

Historical Timeline

Fiscal YearFiled
2025Aug 8, 2025Showing above
2024Aug 5, 2024
2023Aug 4, 2023
2022Aug 5, 2022
2021Aug 6, 2021
2020Aug 7, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance