LAM RESEARCH CORPLRCX
LAM RESEARCH CORP Segments Disclosure
Segment, Geographic Information, and Major Customers
The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. The Company's chief operating decision maker (“CODM”) is the Company's Chief Executive Officer.
The Company's CODM utilizes segment gross margin as the measure of profit or loss to evaluate operating segment profitability and to assess the allocation of resources. Segment gross margin excludes both routine and non-routine expenses that are not allocated to the reportable segment, including, but not limited to, amortization of intangible assets acquired in certain business combinations, the change in value of the Company's elective deferred compensation-related liability, restructuring charges, impairment of long-lived assets, and transformational charges.
Segment results are derived from the Company's internal management reporting system utilizing policies that are substantially the same as those used for external reporting purposes. The CODM utilizes segment revenue growth in conjunction with segment gross margin metrics in comparing forecast to actual results as well as in benchmarking to the Company's peer group.
The Company's centralized manufacturing and support organizations, including global operations and certain administrative functions, provide support to its operating segments. Costs incurred by these organizations, as well as depreciation and amortization and equity-based compensation expense are allocated to cost of goods sold as overhead. Consequently, depreciation and amortization and equity-based compensation expense are not independently identifiable components within the segment’s results, and, therefore are not provided.
With the exception of goodwill, the Company does not identify assets by operating segment. Consequently, the CODM does not regularly review or receive discrete asset information by operating segment.
The table below reconciles the Company's reportable segment to income before income taxes:
| Year Ended | |||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 25, 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Revenue | $ | 18,435,591 | $ | 14,905,386 | $ | 17,428,516 | |||||||||||
| Installation and warranty expense | 544,192 | 435,015 | 647,612 | ||||||||||||||
Other cost of goods sold (COGS) (1) | 8,675,349 | 6,988,338 | 8,688,124 | ||||||||||||||
| Segment COGS | 9,219,541 | 7,423,353 | 9,335,736 | ||||||||||||||
| Segment gross margin | 9,216,050 | 7,482,033 | 8,092,780 | ||||||||||||||
| Reconciliation to consolidated gross margin | |||||||||||||||||
| Restructuring charges, net | — | 43,375 | 78,166 | ||||||||||||||
| All other COGS | 236,991 | 385,867 | 237,689 | ||||||||||||||
| Gross margin | 8,979,059 | 7,052,791 | 7,776,925 | ||||||||||||||
| Research and development | 2,096,387 | 1,902,444 | 1,727,162 | ||||||||||||||
| Selling, general, and administrative | 981,704 | 868,247 | 832,753 | ||||||||||||||
| Restructuring charges, net - operating expenses | — | 18,187 | 42,150 | ||||||||||||||
| Other income (expense), net | 57,161 | 96,309 | (65,650) | ||||||||||||||
| Income before income taxes | $ | 5,958,129 | $ | 4,360,222 | $ | 5,109,210 | |||||||||||
(1)Other COGS is primarily comprised of the capitalized cost of inventory sold, including both direct and indirect costs, but excludes installation and warranty expense and those items not allocated to the segment.
The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located, while long-lived assets; which includes property and equipment, net, and recognized right of use assets reported in Other assets in the Consolidated Balance Sheets as of June 29, 2025 and June 30, 2024; are attributed to the geographic locations in which the assets are located.
Revenues and long-lived assets by geographic region were as follows:
| Year Ended | |||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 25, 2023 | |||||||||||||||
| Revenue: | (in thousands) | ||||||||||||||||
| China | $ | 6,205,062 | $ | 6,293,990 | $ | 4,462,663 | |||||||||||
| Korea | 4,127,766 | 2,874,015 | 3,551,742 | ||||||||||||||
| Taiwan | 3,445,220 | 1,671,815 | 3,477,862 | ||||||||||||||
| Japan | 1,880,882 | 1,460,429 | 1,758,364 | ||||||||||||||
| United States | 1,376,857 | 1,104,087 | 1,665,136 | ||||||||||||||
| Southeast Asia | 837,242 | 794,054 | 1,354,471 | ||||||||||||||
| Europe | 562,562 | 706,996 | 1,158,278 | ||||||||||||||
| Total revenue | $ | 18,435,591 | $ | 14,905,386 | $ | 17,428,516 | |||||||||||
| June 29, 2025 | June 30, 2024 | June 25, 2023 | |||||||||||||||
| Long-lived assets: | (in thousands) | ||||||||||||||||
| United States | $ | 1,716,574 | $ | 1,582,103 | $ | 1,367,534 | |||||||||||
| Southeast Asia | 451,283 | 390,514 | 339,415 | ||||||||||||||
| Korea | 299,497 | 262,405 | 215,898 | ||||||||||||||
| Europe | 134,707 | 115,316 | 93,732 | ||||||||||||||
| Taiwan | 96,458 | 98,268 | 65,432 | ||||||||||||||
| Japan | 8,638 | 7,858 | 8,452 | ||||||||||||||
| China | 8,567 | 6,390 | 8,865 | ||||||||||||||
| $ | 2,715,724 | $ | 2,462,854 | $ | 2,099,328 | ||||||||||||
In fiscal year 2025, two customers accounted for approximately 17% and 15% of total revenues, respectively. In fiscal year 2024, one customer accounted for approximately 17% of total revenues. In fiscal year 2023, two customers accounted for approximately 22% and 16% of total revenues, respectively. No other customers accounted for 10% or more of total revenues.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 11, 2025 | Showing above |
| 2024 | Aug 29, 2024 | |
| 2023 | Aug 15, 2023 | |
| 2022 | Aug 24, 2022 | |
| 2021 | Aug 17, 2021 | |
| 2020 | Aug 18, 2020 | |
| 2019 | Aug 20, 2019 | |
| 2018 | Aug 14, 2018 | |
| 2017 | Aug 15, 2017 | |
| 2016 | Aug 17, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.