Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2020 | Jan. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
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, $0.001 par value per share | |
Trading Symbol | KLAC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 154,074,651 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000319201 | |
Current Fiscal Year End Date | --06-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,431,466 | $ 1,234,409 |
Marketable securities | 865,064 | 746,063 |
Accounts receivable, net | 1,219,189 | 1,107,413 |
Inventories | 1,420,618 | 1,310,985 |
Other current assets | 286,617 | 324,675 |
Total current assets | 5,222,954 | 4,723,545 |
Land, property and equipment, net | 594,185 | 519,824 |
Goodwill | 2,045,445 | 2,045,402 |
Deferred income taxes | 258,734 | 236,797 |
Purchased intangible assets, net | 1,289,843 | 1,391,413 |
Other non-current assets | 403,483 | 362,979 |
Total assets | 9,814,644 | 9,279,960 |
Current liabilities: | ||
Accounts payable | 262,496 | 264,280 |
Deferred system revenue | 274,642 | 336,237 |
Deferred service revenue | 239,618 | 233,493 |
Short-term debt | 20,000 | 0 |
Other current liabilities | 1,223,356 | 865,776 |
Total current liabilities | 2,020,112 | 1,699,786 |
Non-current liabilities: | ||
Long-term debt | 3,441,465 | 3,469,670 |
Deferred tax liabilities | 646,028 | 660,885 |
Deferred service revenue | 88,769 | 96,325 |
Other non-current liabilities | 667,964 | 672,284 |
Total liabilities | 6,864,338 | 6,598,950 |
Commitments and contingencies (Notes 9, 14 and 15) | ||
Stockholders’ equity: | ||
Common stock and capital in excess of par value | 2,104,190 | 2,090,268 |
Retained earnings | 903,696 | 654,930 |
Accumulated other comprehensive income (loss) | (72,704) | (79,774) |
Total KLA stockholders’ equity | 2,935,182 | 2,665,424 |
Non-controlling interest in consolidated subsidiaries | 15,124 | 15,586 |
Total stockholders’ equity | 2,950,306 | 2,681,010 |
Total liabilities and stockholders’ equity | $ 9,814,644 | $ 9,279,960 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||||
Revenues | $ 1,650,870 | $ 1,509,453 | $ 3,189,490 | $ 2,922,867 |
Costs and expenses: | ||||
Costs of revenues | 669,733 | 633,618 | 1,290,295 | 1,237,859 |
Research and development | 229,064 | 220,751 | 448,102 | 431,331 |
Selling, general and administrative | 181,909 | 192,253 | 354,540 | 380,598 |
Interest expense | 38,880 | 40,472 | 78,266 | 80,822 |
Other expense (income), net | 3,882 | (2,568) | 7,079 | (4,186) |
Income before income taxes | 527,402 | 424,927 | 1,011,208 | 796,443 |
Provision for income taxes | 70,419 | 44,622 | 134,083 | 69,742 |
Net income | 456,983 | 380,305 | 877,125 | 726,701 |
Less: Net loss attributable to non-controlling interest | (268) | (250) | (693) | (379) |
Net income attributable to KLA | $ 457,251 | $ 380,555 | $ 877,818 | $ 727,080 |
Net income per share attributable to KLA | ||||
Basic (in dollars per share) | $ 2.96 | $ 2.42 | $ 5.67 | $ 4.60 |
Diluted (in dollars per share) | $ 2.94 | $ 2.40 | $ 5.62 | $ 4.56 |
Weighted-average number of shares: | ||||
Basic (in shares) | 154,273 | 157,290 | 154,777 | 157,994 |
Diluted (in shares) | 155,560 | 158,620 | 156,057 | 159,314 |
Product | ||||
Revenues: | ||||
Revenues | $ 1,238,023 | $ 1,144,550 | $ 2,383,518 | $ 2,202,525 |
Service | ||||
Revenues: | ||||
Revenues | $ 412,847 | $ 364,903 | $ 805,972 | $ 720,342 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 456,983 | $ 380,305 | $ 877,125 | $ 726,701 |
Currency translation adjustments: | ||||
Cumulative currency translation adjustments | 8,901 | 2,844 | 14,341 | 406 |
Income tax (provision) benefit | (787) | (247) | (1,190) | 146 |
Net change related to currency translation adjustments | 8,114 | 2,597 | 13,151 | 552 |
Cash flow hedges: | ||||
Net unrealized gains (losses) arising during the period | (1,357) | 2,290 | (2,275) | 1,548 |
Reclassification adjustments for net (gains) losses included in net income | 1,115 | 125 | 1,061 | 1,652 |
Income tax (provision) benefit | 52 | (412) | 260 | (436) |
Net change related to cash flow hedges | (190) | 2,003 | (954) | 2,764 |
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans | (379) | (51) | (3,498) | 678 |
Available-for-sale securities: | ||||
Net unrealized gains (losses) arising during the period | (911) | 616 | (1,862) | 1,799 |
Reclassification adjustments for net (gains) losses included in net income | (111) | 82 | (212) | 86 |
Income tax (provision) benefit | 219 | (150) | 445 | 392 |
Net change related to available-for-sale securities | (803) | 548 | (1,629) | 2,277 |
Other comprehensive income (loss) | 6,742 | 5,097 | 7,070 | 6,271 |
Less: Comprehensive loss attributable to non-controlling interest | (268) | (250) | (693) | (379) |
Total comprehensive income attributable to KLA | $ 463,993 | $ 385,652 | $ 884,888 | $ 733,351 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock and Capital in Excess of Par Value, Shares | Common Stock and Capital in Excess of Par Value, Amount | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Total KLA Stockholder's Equity | Total KLA Stockholder's EquityCumulative Effect, Period of Adoption, Adjustment | Non- Controlling Interest |
Balance (in shares) at Jun. 30, 2019 | 159,475 | |||||||||
Balance at Jun. 30, 2019 | $ 2,677,693 | $ 2,017,312 | $ 714,825 | $ (73,029) | $ 2,659,108 | $ 18,585 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income attributable to KLA | 346,525 | 346,525 | 346,525 | |||||||
Other comprehensive income | 1,174 | 1,174 | 1,174 | |||||||
Net loss attributable to non-controlling interest | (129) | (129) | ||||||||
Net issuance under employee stock plans (in shares) | 281 | |||||||||
Net issuance under employee stock plans | (23,423) | (23,423) | (23,423) | |||||||
Repurchase of common stock (in shares) | (1,659) | |||||||||
Repurchase of common stock | (228,496) | (20,988) | (207,508) | (228,496) | ||||||
Cash dividends and dividend equivalents declared | (120,669) | (120,669) | (120,669) | |||||||
Stock-based compensation expense | 26,944 | 26,944 | 26,944 | |||||||
Balance (in shares) at Sep. 30, 2019 | 158,097 | |||||||||
Balance at Sep. 30, 2019 | 2,679,619 | 1,999,845 | 733,173 | (71,855) | 2,661,163 | 18,456 | ||||
Balance (in shares) at Jun. 30, 2019 | 159,475 | |||||||||
Balance at Jun. 30, 2019 | 2,677,693 | 2,017,312 | 714,825 | (73,029) | 2,659,108 | 18,585 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income attributable to KLA | 727,080 | |||||||||
Other comprehensive income | 6,271 | |||||||||
Net loss attributable to non-controlling interest | (379) | |||||||||
Repurchase of common stock (in shares) | (3,349) | |||||||||
Repurchase of common stock | (509,089) | |||||||||
Balance (in shares) at Dec. 31, 2019 | 156,849 | |||||||||
Balance at Dec. 31, 2019 | 2,687,970 | 2,017,521 | 719,001 | (66,758) | 2,669,764 | 18,206 | ||||
Balance (in shares) at Jun. 30, 2019 | 159,475 | |||||||||
Balance at Jun. 30, 2019 | 2,677,693 | 2,017,312 | 714,825 | (73,029) | 2,659,108 | 18,585 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Balance (in shares) at Jun. 30, 2020 | 155,461 | |||||||||
Balance at Jun. 30, 2020 | 2,681,010 | $ (5,530) | 2,090,268 | 654,930 | $ (5,530) | (79,774) | 2,665,424 | $ (5,530) | 15,586 | |
Balance (in shares) at Sep. 30, 2019 | 158,097 | |||||||||
Balance at Sep. 30, 2019 | 2,679,619 | 1,999,845 | 733,173 | (71,855) | 2,661,163 | 18,456 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income attributable to KLA | 380,555 | 380,555 | 380,555 | |||||||
Other comprehensive income | 5,097 | 5,097 | 5,097 | |||||||
Net loss attributable to non-controlling interest | (250) | (250) | ||||||||
Net issuance under employee stock plans (in shares) | 442 | |||||||||
Net issuance under employee stock plans | 12,262 | 12,262 | 12,262 | |||||||
Repurchase of common stock (in shares) | (1,690) | |||||||||
Repurchase of common stock | (280,593) | (21,375) | (259,218) | (280,593) | ||||||
Cash dividends and dividend equivalents declared | (135,509) | (135,509) | (135,509) | |||||||
Stock-based compensation expense | 26,789 | 26,789 | 26,789 | |||||||
Balance (in shares) at Dec. 31, 2019 | 156,849 | |||||||||
Balance at Dec. 31, 2019 | 2,687,970 | 2,017,521 | 719,001 | (66,758) | 2,669,764 | 18,206 | ||||
Balance (in shares) at Jun. 30, 2020 | 155,461 | |||||||||
Balance at Jun. 30, 2020 | 2,681,010 | (5,530) | 2,090,268 | 654,930 | (5,530) | (79,774) | 2,665,424 | (5,530) | 15,586 | |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income attributable to KLA | 420,567 | 420,567 | 420,567 | |||||||
Other comprehensive income | 328 | 328 | 328 | |||||||
Net loss attributable to non-controlling interest | (425) | (425) | ||||||||
Net issuance under employee stock plans (in shares) | 172 | |||||||||
Net issuance under employee stock plans | (25,145) | (25,145) | (25,145) | |||||||
Repurchase of common stock (in shares) | (1,027) | |||||||||
Repurchase of common stock | (193,897) | (19,400) | (174,497) | (193,897) | ||||||
Cash dividends and dividend equivalents declared | (141,555) | (141,555) | (141,555) | |||||||
Stock-based compensation expense | 26,992 | 26,992 | 26,992 | |||||||
Balance (in shares) at Sep. 30, 2020 | 154,606 | |||||||||
Balance at Sep. 30, 2020 | 2,762,345 | 2,072,715 | 753,915 | (79,446) | 2,747,184 | 15,161 | ||||
Balance (in shares) at Jun. 30, 2020 | 155,461 | |||||||||
Balance at Jun. 30, 2020 | 2,681,010 | $ (5,530) | 2,090,268 | 654,930 | $ (5,530) | (79,774) | 2,665,424 | $ (5,530) | 15,586 | |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income attributable to KLA | 877,818 | |||||||||
Other comprehensive income | 7,070 | |||||||||
Net loss attributable to non-controlling interest | (693) | |||||||||
Repurchase of common stock (in shares) | (1,801) | |||||||||
Repurchase of common stock | (371,389) | |||||||||
Balance (in shares) at Dec. 31, 2020 | 154,161 | |||||||||
Balance at Dec. 31, 2020 | 2,950,306 | 2,104,190 | 903,696 | (72,704) | 2,935,182 | 15,124 | ||||
Balance (in shares) at Sep. 30, 2020 | 154,606 | |||||||||
Balance at Sep. 30, 2020 | 2,762,345 | 2,072,715 | 753,915 | (79,446) | 2,747,184 | 15,161 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income attributable to KLA | 457,251 | 457,251 | 457,251 | |||||||
Other comprehensive income | 6,742 | 6,742 | 6,742 | |||||||
Net loss attributable to non-controlling interest | (268) | (268) | ||||||||
Net issuance under employee stock plans (in shares) | 329 | |||||||||
Net issuance under employee stock plans | 15,356 | 15,356 | 15,356 | |||||||
Repurchase of common stock (in shares) | (774) | |||||||||
Repurchase of common stock | (177,492) | (10,477) | (167,015) | (177,492) | ||||||
Cash dividends and dividend equivalents declared | (140,455) | (140,455) | (140,455) | |||||||
Stock-based compensation expense | 26,827 | 26,596 | 26,596 | 231 | ||||||
Balance (in shares) at Dec. 31, 2020 | 154,161 | |||||||||
Balance at Dec. 31, 2020 | $ 2,950,306 | $ 2,104,190 | $ 903,696 | $ (72,704) | $ 2,935,182 | $ 15,124 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | Nov. 05, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividends declared (in dollars per share) | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.85 | $ 0.75 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Cash flows from operating activities: | |||||
Net income | $ 456,983 | $ 380,305 | $ 877,125 | $ 726,701 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 164,323 | 187,122 | |||
Loss (gain) on unrealized foreign exchange and other | (18,570) | 4,763 | |||
Asset impairment charges | 865 | 2,581 | |||
Stock-based compensation expense | 53,819 | 53,733 | |||
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions: | |||||
Accounts receivable | (117,189) | (201,896) | |||
Inventories | (112,206) | (6,568) | |||
Other assets | (51,287) | (5,372) | |||
Accounts payable | (1,783) | 54,143 | |||
Deferred system revenue | (61,595) | (35,245) | |||
Deferred service revenue | (1,431) | (3,117) | |||
Other liabilities | 341,181 | 107,131 | |||
Net cash provided by operating activities | 1,073,252 | 883,976 | |||
Cash flows from investing activities: | |||||
Proceeds from sale of assets | 1,855 | 0 | |||
Business acquisitions, net of cash acquired | 0 | (78,530) | |||
Capital expenditures | (115,069) | (67,440) | |||
Purchases of available-for-sale securities | (492,048) | (408,482) | |||
Proceeds from sale of available-for-sale securities | 110,812 | 35,736 | |||
Proceeds from maturity of available-for-sale securities | 259,327 | 357,450 | |||
Purchases of trading securities | (35,371) | (21,873) | |||
Proceeds from sale of trading securities | 39,668 | 27,212 | |||
Proceeds from other investments | 614 | 1,086 | |||
Net cash used in investing activities | (230,212) | (154,841) | |||
Cash flows from financing activities: | |||||
Payment of debt issuance costs | 40,343 | 0 | |||
Proceeds from revolving credit facility | 0 | 250,000 | |||
Repayment of debt | (50,000) | (275,000) | |||
Common stock repurchases | (365,389) | (513,089) | |||
Payment of dividends to stockholders | (280,748) | (256,332) | |||
Issuance of common stock | 26,356 | 24,613 | |||
Tax withholding payments related to vested and released restricted stock units | (36,145) | (35,775) | |||
Payment of contingent consideration payable | 0 | (60) | |||
Net cash used in financing activities | (665,583) | (805,643) | |||
Effect of exchange rate changes on cash and cash equivalents | 19,600 | 378 | |||
Net increase (decrease) in cash and cash equivalents | 197,057 | (76,130) | |||
Cash and cash equivalents at beginning of period | 1,234,409 | 1,015,994 | $ 1,015,994 | ||
Cash and cash equivalents at end of period | $ 1,431,466 | $ 939,864 | 1,431,466 | 939,864 | $ 1,234,409 |
Supplemental cash flow disclosures: | |||||
Income taxes paid | 113,949 | 70,746 | |||
Interest paid | 76,996 | 79,486 | |||
Non-cash activities: | |||||
Contingent consideration (receivable) payable - financing activities | (8,748) | 5,825 | |||
Dividends payable - financing activities | 1,203 | 3,190 | |||
Unsettled common stock repurchase - financing activities | 6,000 | 4,000 | |||
Accrued purchases of land, property and equipment - investing activities | $ 25,987 | $ 13,755 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation. For purposes of this report, “KLA,” the “Company,” “we,” “our,” “us,” or similar references mean KLA Corporation, and its majority-owned subsidiaries unless the context requires otherwise. The Condensed Consolidated Financial Statements have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. 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, 2020. The Condensed Consolidated Financial Statements include the accounts of KLA and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. On February 20, 2019 ("Acquisition Date"), we completed the acquisition of Orbotech Ltd. ("Orbotech") hereinafter referred to as the "Orbotech Acquisition". The results of operations for the three and six months ended December 31, 2020 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, 2021. Certain reclassifications have been made to the prior year’s Condensed Consolidated Financial Statements to conform to the current year presentation. The reclassifications did not have material effects on the prior year’s Condensed Consolidated Balance Sheets, Statements of Operations, Comprehensive Income and Cash Flows. Management Estimates. The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in applying our accounting policies that affect the reported amounts of assets and liabilities (and related disclosure of contingent assets and liabilities) at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Comparability. Effective July 1, 2020, we adopted Accounting Standard Codification ("ASC") 326, Financial Instruments - Credit Losses. Prior periods were not retrospectively recast and, accordingly, the Consolidated Balance Sheet as of June 30, 2020 and the Condensed Consolidated Statement of Operations for the three and six months ended December 31, 2019 were prepared using accounting standards that were different than those in effect for the three and six months ended December 31, 2020. Significant Accounting Policies. With the exception of the change for the accounting of credit losses as a result of the adoption of ASC 326, Financial Instruments - Credit Losses, there have been no other material changes to our significant accounting policies summarized in Note 1 “Description of Business and Summary of Significant Accounting Policies” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. Credit Losses Cash Equivalents and Marketable Securities . All highly liquid debt instruments with original or remaining maturities of less than three months at the date of purchase are cash equivalents. Marketable securities are generally classified as available-for-sale for use in current operations, if required, and are reported at fair value, with unrealized gains and non-credit related unrealized losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income (loss)” (“AOCI”). All realized gains and losses are recorded in earnings in the period of occurrence. The specific identification method is used to determine the realized gains and losses on investments. We regularly review the available-for-sale debt securities in an unrealized loss position, and evaluate the current expected credit loss by considering available information relevant to the collectibility of the security, such as historical experience, market data, issuer-specific factors including credit ratings, default and loss rates of the underlying collateral and structure and credit enhancements, current economic conditions and reasonable and supportable forecasts. If we do not expect to recover the entire amortized cost of the security, the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security, is recorded as an allowance for credit losses with an offsetting entry to earnings; and the amount that is not credit-related is recognized in other comprehensive income (loss). If we have the intent to sell the security or it is more likely than not that we will be required to sell the security before recovery of its entire amortized cost basis, we first write off any previously recognized allowance for credit losses with an offsetting entry to the security’s amortized cost basis. If the allowance has been fully written off and fair value is less than amortized cost basis, we write down the amortized cost basis of the security to its fair value with an offsetting entry to net income. There were no credit losses on available-for-sale debt securities recognized for the three and six months ended December 31, 2020 and 2019. Allowance for Credit Losses . A majority of our accounts receivable are derived from sales to large multinational semiconductor and electronics manufacturers throughout the world. We maintain an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable and changes in such are classified as selling, general and administrative expense in the Condensed Consolidated Statements of Income. We assess collectibility by reviewing accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The allowance for credit losses is reviewed on a quarterly basis to assess the adequacy of the allowance. For the three and six months ended December 31, 2020, our assessment considered the impact of COVID-19 and estimates of expected credit and collectability trends. The credit losses recognized were not significant for the three and six months ended December 31, 2020 and 2019. Volatility in market conditions and evolving credit trends are difficult to predict and may cause variability and volatility that may have a material impact on our allowance for credit losses in future periods. Recent Accounting Pronouncements Recently Adopted As explained above, on July 1, 2020 we adopted ASC 326, which was issued by the Financial Accounting Board (“FASB”) in June 2016 as Accounting Standards Update ("ASU") No. 2016-13 Financial Instruments – Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments . The ASU replaced previous incurred loss impairment guidance and established a single expected credit losses allowance framework for financial assets carried at amortized cost. It also eliminated the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses. We adopted ASC 326 using the modified retrospective method, which requires a cumulative-effect adjustment to the opening balance of retained earnings to be recognized on the date of adoption and, accordingly, recorded a net decrease of $5.5 million to retained earnings as of July 1, 2020. Please see the “Credit Losses” accounting policy in the “Significant Accounting Policies” section above. In August 2018, the FASB issued an accounting standard update which modifies the existing accounting standards for the fair value measurement disclosure. This update eliminates the disclosures of the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy, and the policy for the timing of transfers between levels. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2021 on a retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued an accounting standard update to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. Some of the changes include adding a disclosure requirement for significant gains and losses related to changes in the benefit obligation for the period and removing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. We adopted this update beginning in the first quarter of the fiscal year ending June 30, 2021 on a retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued an accounting standard update to align the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance clarifies which costs should be capitalized, including the cost to acquire the license and the related implementation costs. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2021 on a prospective basis, and the adoption had no material impact on our Condensed Consolidated Financial Statements. Updates Not Yet Effective In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes in ASC 740, Income Taxes (“ASC 740”). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in ASC 740. The update is effective for us beginning in the first quarter of our fiscal year ending June 30, 2022, and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. |
REVENUE
REVENUE | 6 Months Ended |
Dec. 31, 2020 | |
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 (In thousands, except for percentage) December 31, 2020 June 30, 2020 $ Change % Change Accounts receivable, net $ 1,219,189 $ 1,107,413 $ 111,776 10 % Contract assets $ 94,375 $ 99,876 $ (5,501) (6) % Contract liabilities $ 603,029 $ 666,055 $ (63,026) (9) % Our payment terms and conditions vary by contract type, although the terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of product shipment, with the remainder payable within 30 days of acceptance. The change in contract assets during the six months ended December 31, 2020 was mainly due to $54.5 million of contract assets reclassified to net accounts receivable as our right to consideration for these contract assets became unconditional, partially offset by $48.7 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. During the six months ended December 31, 2020, we recognized revenue of $439.9 million that was included in contract liabilities as of July 1, 2020. This was partially offset by the value of products and services billed to customers for which control of the products and service has not transferred to the customers. Contract liabilities are included in current and non-current liabilities on our Condensed Consolidated Balance Sheets. Remaining Performance Obligations As of December 31, 2020, we had $2.57 billion of remaining performance obligations, which represents our obligation to deliver products and services, and consists primarily of sales orders where written customer requests have been received. We expect to recognize approximately 5% to 15% of these performance obligations as revenue beyond the next twelve months, subject to risk of delays, pushouts, and cancellation by the customer, usually with limited or no penalties. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Our financial assets and liabilities are measured and recorded at fair value, except for our debt and certain equity investments in privately-held companies. Equity investments without a readily available fair value are accounted for using the measurement alternative. The measurement alternative is calculated as cost minus impairment, if any, plus or minus changes resulting from observable price changes. Our non-financial assets, such as goodwill, intangible assets, and land, property and equipment, are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. Fair Value of Financial Instruments. We have evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of our cash equivalents, accounts receivable, accounts payable and other current assets and liabilities approximate their carrying amounts due to the relatively short maturity of these items. Fair Value Hierarchy. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 3 Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of December 31, 2020, the types of instruments valued based on quoted market prices in active markets included money market funds, certain U.S. Treasury securities and U.S. Government agency securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. The types of instruments valued based on other observable inputs included corporate debt securities, sovereign securities, municipal securities, and certain U.S. Treasury securities. The market inputs used to value these instruments generally consist of market yields, reported trades and broker / dealer quotes. Such instruments are generally classified within Level 2 of the fair value hierarchy. The principal market in which we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants generally are large financial institutions. Our foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy. The fair value of deferred payments and contingent consideration payable, the majority of which were recorded in connection with business combinations, were classified as Level 3 and estimated using significant inputs that were not observable in the market. See Note 6 “Business Combinations” of the Notes to the 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 December 31, 2020 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 795,712 $ 795,712 $ — $ — U.S. Treasury securities 15,400 — 15,400 — Marketable securities: Corporate debt securities 418,348 — 418,348 — Municipal securities 39,352 — 39,352 — Sovereign securities 3,059 — 3,059 — U.S. Government agency securities 146,096 146,096 — — U.S. Treasury securities 175,589 154,599 20,990 — Total cash equivalents and marketable securities (1) 1,593,556 1,096,407 497,149 — Other current assets: Derivative assets 2,660 — 2,660 — Other non-current assets: Executive Deferred Savings Plan 245,673 188,203 57,470 — Total financial assets (1) $ 1,841,889 $ 1,284,610 $ 557,279 $ — Liabilities Derivative liabilities $ (3,841) $ — $ (3,841) $ — Deferred payments (4,400) — — (4,400) Contingent consideration payable (7,214) — — (7,214) Total financial liabilities $ (15,455) $ — $ (3,841) $ (11,614) ________________ (1) Excludes cash of $542.7 million held in operating accounts and time deposits of $160.3 million as of December 31, 2020. 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, 2020 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 694,950 $ 694,950 $ — $ — Marketable securities: Corporate debt securities 381,957 — 381,957 — Municipal securities 29,110 — 29,110 — Sovereign securities 2,017 — 2,017 — U.S. Government agency securities 106,336 106,336 — — U.S. Treasury securities 181,193 151,210 29,983 — Total cash equivalents and marketable securities (1) 1,395,563 952,496 443,067 — Other current assets: Derivative assets 2,077 — 2,077 — Other non-current assets: Executive Deferred Savings Plan 213,487 166,000 47,487 — Total financial assets (1) $ 1,611,127 $ 1,118,496 $ 492,631 $ — Liabilities Derivative liabilities $ (1,410) $ — $ (1,410) $ — Deferred payments (6,750) — — (6,750) Contingent consideration payable (15,513) — — (15,513) Total financial liabilities $ (23,673) $ — $ (1,410) $ (22,263) ________________ (1) Excludes cash of $460.8 million held in operating accounts and time deposits of $78.7 million as of June 30, 2020. There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the six months ended December 31, 2020. See Note 8 “Debt” of the Notes to the Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes. |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS | 6 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL STATEMENT COMPONENTS | FINANCIAL STATEMENT COMPONENTS Condensed Consolidated Balance Sheets As of As of (In thousands) December 31, 2020 June 30, 2020 Accounts receivable, net: Accounts receivable, gross $ 1,236,877 $ 1,119,235 Allowance for credit losses (17,688) (11,822) $ 1,219,189 $ 1,107,413 Inventories: Raw materials $ 525,002 $ 478,594 Customer service parts 355,908 338,608 Work-in-process 374,462 334,965 Finished goods 165,246 158,818 $ 1,420,618 $ 1,310,985 Other current assets: Contract assets $ 94,375 $ 99,876 Prepaid expenses 71,330 74,955 Deferred costs of revenue 58,793 77,219 Prepaid income and other taxes 37,744 56,809 Other current assets 24,375 15,816 $ 286,617 $ 324,675 Land, property and equipment, net: Land $ 67,867 $ 67,858 Buildings and leasehold improvements 436,180 405,238 Machinery and equipment 722,084 677,627 Office furniture and fixtures 32,429 29,964 Construction-in-process 126,656 93,736 1,385,216 1,274,423 Less: accumulated depreciation (791,031) (754,599) $ 594,185 $ 519,824 Other non-current assets: Executive Deferred Savings Plan (1) $ 245,673 $ 213,487 Operating lease right of use assets 103,430 100,790 Other non-current assets 54,380 48,702 $ 403,483 $ 362,979 Other current liabilities: Compensation and benefits $ 385,007 $ 251,379 Executive Deferred Savings Plan 245,976 215,167 Customer credits and advances 251,970 114,896 Other accrued expenses 156,916 183,435 Income taxes payable 116,091 35,640 Interest payable 36,176 36,265 Operating lease liabilities 31,220 28,994 $ 1,223,356 $ 865,776 Other non-current liabilities: Income taxes payable $ 362,164 $ 383,447 Pension liabilities 83,618 78,911 Operating lease liabilities 74,443 70,885 Other non-current liabilities 147,739 139,041 $ 667,964 $ 672,284 ________________ (1) We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense associated with changes in the EDSP liability included in selling, general and administrative expense was $22.1 million and $12.0 million during the three months ended December 31, 2020 and 2019, respectively and was $35.3 million and $13.9 million during the six months ended December 31, 2020 and 2019, respectively. The amount of net gains associated with changes in the EDSP assets included in selling, general and administrative expense was $22.2 million and $11.9 million during the three months ended December 31, 2020 and 2019, respectively and was $35.5 million and $14.2 million during the six months ended December 31, 2020 and 2019, respectively. For additional details, refer to Note 1 “Description of Business and Summary of Significant Accounting Policies” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) (“OCI”) 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 Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance as of December 31, 2020 $ (30,806) $ 2,054 $ (24,204) $ (19,748) $ (72,704) Balance as of June 30, 2020 $ (43,957) $ 3,683 $ (23,250) $ (16,250) $ (79,774) The effects on net income (loss) of amounts reclassified from accumulated OCI to the Condensed Consolidated Statements of Operations for the indicated period were as follows (in thousands): Three Months Ended Six Months Ended Location in the Condensed Consolidated December 31, December 31, Accumulated OCI Components Statements of Operations 2020 2019 2020 2019 Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts Revenues $ (711) $ (8) $ (928) $ 365 Costs of revenues and operating expenses (125) (17) 425 (1,818) Interest expense (279) (100) (558) (199) Net gains (losses) reclassified from accumulated OCI $ (1,115) $ (125) $ (1,061) $ (1,652) Unrealized gains (losses) on available-for-sale securities Other expense (income), net $ (111) $ (82) $ (212) $ (86) The amounts reclassified out of accumulated OCI related to our defined benefit pension plans, which were recognized as a component of net periodic cost for the three months ended December 31, 2020 and 2019 were $0.3 million and $0.2 million, respectively, and for the six months ended December 31, 2020 and 2019 were $0.5 million and $0.5 million, respectively. For additional details, refer to Note 13 “Employee Benefit Plans” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 416,926 $ 1,445 $ (23) $ 418,348 Money market funds and other 795,712 — — 795,712 Municipal securities 39,190 165 (3) 39,352 Sovereign securities 3,056 3 — 3,059 U.S. Government agency securities 145,774 325 (3) 146,096 U.S. Treasury securities 190,282 708 (1) 190,989 Subtotal 1,590,940 2,646 (30) 1,593,556 Add: Time deposits (1) 160,301 — — 160,301 Less: Cash equivalents 888,792 1 — 888,793 Marketable securities $ 862,449 $ 2,645 $ (30) $ 865,064 As of June 30, 2020 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 379,334 $ 2,673 $ (50) $ 381,957 Money market funds and other 694,950 — — 694,950 Municipal securities 28,859 251 — 29,110 Sovereign securities 2,009 8 — 2,017 U.S. Government agency securities 106,091 252 (7) 106,336 U.S. Treasury securities 179,631 1,564 (2) 181,193 Subtotal 1,390,874 4,748 (59) 1,395,563 Add: Time deposits (1) 124,153 — — 124,153 Less: Cash equivalents 773,653 — — 773,653 Marketable securities $ 741,374 $ 4,748 $ (59) $ 746,063 ________________ (1) Time deposits excluded from fair value measurements. Our investment portfolio consists of both corporate and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. Most of our unrealized losses are due to changes in market interest rates and bond yields. We believe that we have the ability to realize the full value of all of these investments upon maturity. As of December 31, 2020, we had 39 investments in an unrealized loss position. The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the date indicated below, none of which were in a continuous loss position for 12 months or more: As of December 31, 2020 (In thousands) Fair Value Gross Corporate debt securities $ 47,474 $ (23) Municipal securities 6,478 (3) U.S. Government agency securities 6,504 (3) U.S. Treasury securities 29,252 (1) Total $ 89,708 $ (30) As of June 30, 2020 (In thousands) Fair Value Gross Corporate debt securities $ 44,429 $ (50) Municipal securities 870 — U.S. Government agency securities 9,951 (7) U.S. Treasury securities 19,010 (2) Total $ 74,260 $ (59) 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 December 31, 2020 (In thousands) Amortized Cost Fair Value Due within one year $ 468,753 $ 470,247 Due after one year through three years 393,696 394,817 $ 862,449 $ 865,064 As of June 30, 2020 (In thousands) Amortized Cost Fair Value Due within one year $ 415,915 $ 418,169 Due after one year through three years 325,459 327,894 $ 741,374 $ 746,063 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 and six months ended December 31, 2020 and 2019 were immaterial. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On April 24, 2020, we acquired a product line from a public company for total purchase consideration of $11.4 million, of which $2.2 million was allocated to goodwill. Goodwill recognized was assigned to the Wafer Inspection and Patterning reporting unit, and the amount recognized was deductible for income tax purposes. On August 22, 2019, we acquired the outstanding shares of a privately-held company, primarily to expand our products and services offerings, for a total purchase consideration of $94.0 million inclusive of measurement period adjustments as well as the fair value of the promise to pay an additional consideration up to $60.0 million contingent on the achievement of certain milestones. As of December 31, 2020, the additional consideration was estimated to be zero. The $54.2 million of goodwill was assigned to the Wafer Inspection and Patterning reporting unit, and the amount recognized was not deductible for income tax purposes. As of December 31, 2020, we have $7.2 million of contingent consideration recorded for other acquisitions from fiscal year 2019, which is classified as a non-current liability on the Condensed Consolidated Balance Sheet. For additional details, please refer to Note 6 "Business Combinations" of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020, filed with the SEC on August 7, 2020. |
GOODWILL AND PURCHASED INTANGIB
GOODWILL AND PURCHASED INTANGIBLE ASSETS | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND PURCHASED INTANGIBLE ASSETS | GOODWILL AND PURCHASED INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in the prior business combinations. We have four reportable segments and six reporting units. For additional details, refer to Note 18 “Segment Reporting and Geographic Information” of the Notes to the Condensed Consolidated Financial Statements. The following table presents changes in goodwill carrying value during the six months ended December 31, 2020 (1) : (In thousands) Wafer Inspection and Patterning Global Service and Support ( “ GSS ” ) Specialty Semiconductor Process PCB and Display Component Inspection Total Balance as of June 30, 2020 $ 416,840 $ 25,908 $ 681,858 $ 907,221 $ 13,575 $ 2,045,402 Foreign currency adjustments 43 — — — — 43 Balance as of December 31, 2020 $ 416,883 $ 25,908 $ 681,858 $ 907,221 $ 13,575 $ 2,045,445 _________________ (1) No goodwill was assigned to the Other reporting unit, and accordingly it was excluded from the table above. Goodwill is not subject to amortization but is tested for impairment annually during the third fiscal quarter as well as whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In testing goodwill for impairment, we utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. When performing the qualitative assessment, we consider the following factors: declines in our stock price or market capitalization, declines in our market share, and declines in revenues or profitability at our reporting units. Any impairment charges could have a material adverse effect on our operating results and net asset value in the quarter in which we recognize the impairment charge. If our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a quantitative assessment by comparing the carrying value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the carrying value, the amount of impairment is computed as the excess of the carrying value over the estimated fair value, not to exceed the carrying value of goodwill. As of December 31, 2020, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the assessment performed in the third quarter of the fiscal year ended June 30, 2020. As a result of that assessment, we recorded $144.2 million and $112.5 million in impairment charges in the Specialty Semiconductor Process and PCB and Display reporting units, respectively, in the three months ended March 31, 2020. For additional details, refer to Note 7 “Goodwill and Purchased Intangible Assets” of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. Purchased Intangible Assets The components of purchased intangible assets as of the dates indicated below were as follows: As of As of (In thousands) December 31, 2020 June 30, 2020 Category Range of Useful Lives (in years) Gross Accumulated Net Gross Accumulated Net Existing technology 4-8 $ 1,373,458 $ 418,402 $ 955,056 $ 1,269,883 $ 342,623 $ 927,260 Customer relationships 4-9 305,817 115,070 190,747 305,817 98,754 207,063 Trade name / Trademark 4-7 117,383 46,355 71,028 117,383 39,216 78,167 Backlog and other <1-9 50,404 49,551 853 50,404 47,215 3,189 Intangible assets subject to amortization 1,847,062 629,378 1,217,684 1,743,487 527,808 1,215,679 In-process research and development 72,259 100 72,159 175,834 100 175,734 Total $ 1,919,321 $ 629,478 $ 1,289,843 $ 1,919,321 $ 527,908 $ 1,391,413 Purchased intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. The impairment indicator primarily includes the declines in our operating cash flows from the use of these assets. If the impairment indicators are present, we are required to perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to these long-lived assets to their carrying value. We performed the required recoverability test for intangible assets in the third quarter of the fiscal year ended June 30, 2020 and concluded that there was no impairment based on the assessment. As of December 31, 2020, 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 Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Amortization expense - Cost of revenues $ 38,738 $ 36,364 $ 75,778 $ 71,985 Amortization expense - Selling, general and administrative 12,301 20,257 25,730 42,513 Amortization expense - Research and development 31 131 62 162 Total $ 51,070 $ 56,752 $ 101,570 $ 114,660 Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2020, the remaining estimated annual amortization expense is expected to be as follows: Fiscal year ending June 30: Amortization (In thousands) 2021 (remaining six months) $ 104,418 2022 208,186 2023 207,094 2024 204,577 2025 192,368 2026 and thereafter 301,041 Total $ 1,217,684 |
DEBT
DEBT | 6 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes our debt as of December 31, 2020 and June 30, 2020: As of December 31, 2020 As of June 30, 2020 Amount Effective Amount Effective Fixed-rate 4.650% Senior Notes due on November 1, 2024 $ 1,250,000 4.682 % $ 1,250,000 4.682 % Fixed-rate 5.650% Senior Notes due on November 1, 2034 250,000 5.670 % 250,000 5.670 % Fixed-rate 4.100% Senior Notes due on March 15, 2029 800,000 4.159 % 800,000 4.159 % Fixed-rate 5.000% Senior Notes due on March 15, 2049 400,000 5.047 % 400,000 5.047 % Fixed-rate 3.300% Senior Notes due on March 1, 2050 750,000 3.302 % 750,000 3.302 % Revolving Credit Facility — — % 50,000 1.310 % Fixed-rate 3.47% Note Payable due on February 20, 2021 20,000 2.050 % — — % Fixed-rate 3.59% Note Payable due on February 20, 2022 20,000 2.300 % — — % Total 3,490,000 3,500,000 Unamortized discount/premium, net (7,421) (8,167) Unamortized debt issuance costs (21,114) (22,163) Total $ 3,461,465 $ 3,469,670 Reported as: Short-term debt $ 20,000 $ — Long-term debt 3,441,465 3,469,670 Total $ 3,461,465 $ 3,469,670 As of December 31, 2020, future minimum principal payments for our debt are as follows: $20.0 million in the third quarter of fiscal 2021, $20.0 million in fiscal year 2022, $1.25 billion in fiscal year 2025 and $2.20 billion after fiscal year 2026. Senior Notes and Debt Redemption: In February 2020, we issued $750.0 million aggregate principal amount of senior, unsecured long-term notes (the “2020 Senior Notes”). In March 2019 and November 2014, we issued $1.20 billion (the "2019 Senior Notes”) and $2.50 billion (the "2014 Senior Notes,” and together with the 2019 Senior Notes and the 2020 Senior Notes, the “Senior Notes”), respectively, aggregate principal amount of senior, unsecured long-term notes. In each of the second quarters of fiscal 2018 and 2020, we repaid $250.0 million of the 2014 Senior Notes and in the third quarter of fiscal 2020 we repaid another $500.0 million of the 2014 Senior Notes using the proceeds from the issuance of the 2020 Senior Notes, bringing the outstanding aggregate principal amount of the 2014 Senior Notes to $1.50 billion as of December 31, 2020. The interest rates for our Senior Notes are not subject to adjustment. Interest is payable as follows: semi-annually on March 1 and September 1 of each year for the 2020 Senior Notes; semi-annually on March 15 and September 15 of each year for the 2019 Senior Notes; and semi-annually on May 1 and November 1 of each year for the 2014 Senior Notes. The indenture for the Senior Notes (the “Indenture”) includes covenants that limit our ability to grant liens on our facilities and enter into sale and leaseback transactions, subject to certain allowances under which certain sale and leaseback transactions are not restricted. In certain circumstances involving a change of control followed by a downgrade of the rating of a series of Senior Notes by at least two of Moody’s, S&P and Fitch Inc., unless we have exercised our rights to redeem the Senior Notes of such series, we will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s Senior Notes of that series pursuant to the offer described below (the “Change of Control Offer”). In the Change of Control Offer, we will be required to offer payment in cash equal to 101% of the aggregate principal amount of Senior Notes repurchased plus accrued and unpaid interest, if any, on the Senior Notes repurchased, up to, but not including, the date of repurchase. Based on the trading prices of the Senior Notes on the applicable dates, the fair value of the Senior Notes as of December 31, 2020 and June 30, 2020 was approximately $4.14 billion and $4.01 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 December 31, 2020, we were in compliance with all of our covenants under the Indenture associated with the Senior Notes. Revolving Credit Facility: We have in place a Credit Agreement (the “Credit Agreement”) providing for a $1.00 billion unsecured Revolving Credit Facility (the "Revolving Credit Facility") with a maturity date of November 30, 2023. During the fiscal year ended June 30, 2020, we borrowed $450.0 million from the Revolving Credit Facility and made principal payments of $400.0 million, $200.0 million of which were repayments in the third fiscal quarter of 2020 using a portion of the proceeds from the issuance of the 2020 Senior Notes. As of June 30, 2020, we had outstanding $50.0 million aggregate principal amount of borrowings under the Revolving Credit Facility. During the first fiscal quarter of 2021, we repaid the remaining $50.0 million aggregate principal balance so that as of December 31, 2020 we had no outstanding borrowings under the Revolving Credit Facility. We may borrow, repay and reborrow funds under the Revolving Credit Facility until the Maturity Date, at which time such Revolving Credit Facility will terminate, and all outstanding loans under such facility, together with all accrued and unpaid interest, must be repaid. We may prepay outstanding borrowings under the Revolving Credit Facility at any time without a prepayment penalty. Borrowings under the Revolving Credit Facility will bear interest, at our option, at either: (i) the Alternative Base Rate (“ABR”) plus a spread, which ranges from 0 bps to 75 bps, or (ii) the London Interbank Offered Rate (“LIBOR”) plus a spread, which ranges from 100 bps to 175 bps. The spreads under ABR and LIBOR are subject to adjustment in conjunction with credit rating downgrades or upgrades. We are also obligated to pay an annual commitment fee on the daily undrawn balance of the Revolving Credit Facility, which ranges from 10 bps to 25 bps, subject to an adjustment in conjunction with changes to our credit rating. As of December 31, 2020, we elected to pay interest on the borrowed amount under the Revolving Credit Facility at LIBOR plus a spread of 112.5 bps, and we pay an annual commitment fee of 12.5 bps on the daily undrawn balance of the Revolving Credit Facility. The Revolving Credit Facility requires us to maintain an interest expense coverage ratio as described in the Credit Agreement, on a quarterly basis, covering the trailing four consecutive fiscal quarters of no less than 3.50 to 1.00. In addition, we are required to maintain the maximum leverage ratio as described in the Credit Agreement, on a quarterly basis of 3.00 to 1.00, covering the trailing four consecutive fiscal quarters for each fiscal quarter, which can be increased to 4.00 to 1.00 for a period of time in connection with a material acquisition or a series of material acquisitions, as we elected to increase our maximum leverage ratio in connection with the Orbotech acquisition. As of December 31, 2020, our maximum allowed leverage ratio was 3.50 to 1.00. We were in compliance with all covenants under the Credit Agreement as of December 31, 2020. Notes Payable: In December 2020 we sold promissory notes to a financial institution, borrowing an aggregate principal amount of $40.0 million ("Notes Payable"). Of the aggregate amount borrowed, $20.0 million matures on February 20, 2021 and the balance of $20.0 million matures on February 20, 2022. The premium of $0.3 million from the sale of the Notes Payable is being amortized over the life of the debt. The net proceeds from the sale of the Notes Payable will be used for general corporate purposes. For additional details, refer to Note 8 “Debt” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. |
LEASES
LEASES | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES We have operating leases for facilities, vehicles, and other equipment. Our facility leases are primarily used for administrative functions, research and development, manufacturing, and storage and distribution. Our finance leases are not material. Our existing leases do not contain significant restrictive provisions or residual value guarantees; however, certain leases contain provisions for payment of maintenance, real estate taxes, or insurance costs by us. Our leases have remaining lease terms ranging from less than one year to 16 years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised. Lease expense was $10.0 million and $19.6 million for the three and six months ended December 31, 2020, respectively, and $9.1 million and $17.6 million for the three and six months ended December 31, 2019, respectively. Expense related to short-term leases, which are not recorded on the Condensed Consolidated Balance Sheets, was not material for the three and six months ended December 31, 2020 and 2019. As of December 31, 2020 and June 30, 2020, the weighted average remaining lease term was 4.8 years and 5.1 years, respectively, and the weighted average discount rate for operating leases was 1.80% and 1.99%, respectively. Supplemental cash flow information related to leases was as follows: Six Months Ended December 31, In thousands 2020 2019 Operating cash outflows from operating leases $ 19,253 $ 17,424 ROU assets obtained in exchange for new operating lease liabilities $ 20,584 $ 10,278 Maturities of lease liabilities as of December 31, 2020 were as follows: Fiscal year ending June 30: Amount 2021 (remaining six months) $ 17,727 2022 28,811 2023 19,987 2024 13,358 2025 11,242 2026 and thereafter 19,823 Total lease payments 110,948 Less imputed interest (5,285) Total $ 105,663 As of December 31, 2020, we did not have any material leases that had not yet commenced. |
EQUITY, LONG-TERM INCENTIVE COM
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST | 6 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST | EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTERESTEquity Incentive Program As of December 31, 2020, 10.3 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” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. Assumed Equity Plans As part of the Orbotech acquisition, we assumed outstanding equity incentive awards under the following Orbotech equity incentive plans: (i) Equity Remuneration Plan for Key Employees of Orbotech Ltd. and its Affiliates and Subsidiaries (as Amended and Restated in 2005), (ii) 2010 Equity-Based Incentive Plan, and (iii) 2015 Equity-Based Incentive Plan (each, an “Assumed Equity Plan” and collectively the “Assumed Equity Plans”). As of December 31, 2020, there were 89,963 shares of our common stock underlying the outstanding Assumed RSUs under the Assumed Equity Plans. For details on the Assumed Equity Plans refer to Note 10 “Equity, Long-Term Incentive Compensation Plans and Non-Controlling Interest” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. Equity Incentive Plans - General Information The following table summarizes the combined activity under our equity incentive plans: (In thousands) Available For Grant (1) (2) Balance as of June 30, 2020 10,760 Restricted stock units granted (3) (619) Restricted stock units granted adjustment (4) 54 Restricted stock units canceled 88 Balance as of December 31, 2020 10,283 __________________ (1) The number of RSUs reflects the application of the award multiplier of 2.0x to calculate the impact of the award on the shares reserved under the 2004 Plan. (2) No additional stock options, RSUs or other awards will be granted under the Assumed Equity Plans. (3) Includes RSUs granted to senior management during the six months ended December 31, 2020 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such RSUs that are deemed to have been earned) (“performance-based RSUs”). This line item includes all such performance-based RSUs granted during the six months ended December 31, 2020 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 six months ended December 31, 2020 reflects the application of the multiplier described above). (4) Represents the portion of RSUs granted with performance-based vesting criteria and reported at the actual number of shares issued upon achievement of the performance vesting criteria during the six months ended December 31, 2020. The fair value of stock-based awards is measured at the grant date and is recognized as an expense over the employee’s requisite service period. For RSUs granted without “dividend equivalent” rights, fair value is calculated using the closing price of our common stock on the grant date, adjusted to exclude the present value of dividends which are not accrued on those RSUs. The fair value for RSUs granted with “dividend equivalent” rights is determined using the closing price of our common stock on the grant date. Compensation expense for RSUs with performance metrics is calculated based upon expected achievement of the metrics specified in the grant, or when a grant contains a market condition, the grand date fair value using a Monte Carlo simulation. The fair value for purchase rights under our Employee Stock Purchase Plan is determined using a Black-Scholes model. The following table shows stock-based compensation expense for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Stock-based compensation expense by: Costs of revenues $ 4,104 $ 3,362 $ 7,771 $ 6,226 Research and development 5,225 5,073 10,696 10,360 Selling, general and administrative 17,498 18,354 35,352 37,147 Total stock-based compensation expense $ 26,827 $ 26,789 $ 53,819 $ 53,733 The following table shows stock-based compensation capitalized as inventory as of the dates indicated below: As of As of (In thousands) December 31, 2020 June 30, 2020 Inventory $ 5,855 $ 6,752 Restricted Stock Units The following table shows the activity and weighted-average grant date fair value for RSUs during the six months ended December 31, 2020: Shares (1) (In thousands) Weighted-Average Outstanding restricted stock units as of June 30, 2020 (2) 2,253 $ 107.33 Granted (3) 309 $ 202.60 Granted adjustments (27) $ 88.96 Vested and released (341) $ 98.54 Withheld for taxes (172) $ 98.54 Forfeited (51) $ 117.20 Outstanding restricted stock units as of December 31, 2020 (2) 1,971 $ 124.58 __________________ (1) Share numbers reflect actual shares subject to awarded RSUs. (2) Includes performance-based and market-based RSUs. (3) This line item includes performance-based RSUs granted during the six months ended December 31, 2020 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 six months ended December 31, 2020). The RSUs granted by us generally vest (a) with respect to awards with only service-based vesting criteria, over periods ranging from two The following table shows the weighted-average grant date fair value per unit for the RSUs granted, vested, and tax benefits realized by us in connection with vested and released RSUs for the indicated periods : Three Months Ended Six Months Ended December 31, December 31, (In thousands, except for weighted-average grant date fair value) 2020 2019 2020 2019 Weighted-average grant date fair value per unit $ 220.53 $ 171.98 $ 202.60 $ 142.75 Grant date fair value of vested restricted stock units $ 23,267 $ 26,643 $ 50,569 $ 56,736 Tax benefits realized by us in connection with vested and released restricted stock units $ 6,694 $ 9,661 $ 13,431 $ 13,654 As of December 31, 2020, the unrecognized stock-based compensation expense balance related to RSUs was $165.0 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 1.6 years. The intrinsic value of outstanding RSUs as of December 31, 2020 was $510.3 million. Cash-Based Long-Term Incentive Compensation We have adopted a cash-based long-term incentive 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 this program. During the six months ended December 31, 2020 and 2019, we approved Cash LTI awards of $4.1 million and $4.3 million, respectively, under our Cash LTI Plan. Cash LTI awards issued to employees under the Cash LTI Plan will vest in three or four equal installments, with one-third or one-fourth of the aggregate amount of the Cash LTI award vesting on each anniversary of the grant date over a three Employee Stock Purchase Plan Our Employee Stock Purchase Plan (“ESPP”) provides that eligible employees may contribute up to 15% of their eligible earnings toward the semi-annual purchase of our common stock. The ESPP is qualified under Section 423 of the Internal Revenue Code. The employee’s purchase price is derived from a formula based on the closing price of the common stock on the first day of the offering period versus the closing price on the date of purchase (or, if not a trading day, on the immediately preceding trading day). The offering period (or length of the look-back period) under the ESPP has a duration of six months, and the purchase price with respect to each offering period beginning on or after such date is, until otherwise amended, equal to 85% of the lesser of (i) the fair market value of our common stock at the commencement of the applicable six-month offering period or (ii) the fair market value of our common stock on the purchase date. We estimate the fair value of purchase rights under the ESPP using a Black-Scholes model. The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes model and the straight-line attribution approach with the following weighted-average assumptions: Three Months Ended Six Months Ended December 31, December 31, 2020 2019 2020 2019 Stock purchase plan: Expected stock price volatility 51.9 % 31.6 % 51.9 % 31.6 % Risk-free interest rate 0.7 % 2.4 % 0.7 % 2.4 % Dividend yield 1.9 % 2.5 % 1.9 % 2.5 % Expected life (in years) 0.5 0.5 0.5 0.5 The following table shows total cash received from employees for the issuance of shares under the ESPP, the number of shares purchased by employees through the ESPP, the tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods: Three Months Ended Six Months Ended (In thousands, except for weighted-average fair value per share) December 31, December 31, 2020 2019 2020 2019 Total cash received from employees for the issuance of shares under the ESPP $ 26,356 $ 24,492 $ 26,356 $ 24,492 Number of shares purchased by employees through the ESPP 161 237 161 237 Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP $ (3,005) $ 119 $ 1,164 $ 1,853 Weighted-average fair value per share based on Black-Scholes model $ 52.23 $ 27.35 $ 52.23 $ 27.35 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 December 31, 2020, a total of 2.5 million shares were reserved and available for issuance under the ESPP. Quarterly Cash Dividends On November 5, 2020, we announced that our Board of Directors had declared a quarterly cash dividend of $0.90 per share to be paid on December 1, 2020 to stockholders of record as of the close of business on November 16, 2020. The total amount of regular quarterly cash dividends and dividend equivalents paid during the three months ended December 31, 2020 and 2019 was $139.6 million and $134.7 million, respectively. The total amount of regular quarterly cash dividends and dividend equivalents paid during the six months ended December 31, 2020 and 2019 was $280.7 million and $256.3 million, respectively. The amount of accrued dividend equivalents payable for regular quarterly cash dividends on unvested RSUs with dividend equivalent rights as of December 31, 2020 and June 30, 2020 was $9.5 million and $8.3 million, respectively. These amounts will be paid upon vesting of the underlying RSUs. Non-Controlling Interest We have consolidated the results of Orbograph Ltd. (“Orbograph”), in which we own approximately 94% of the outstanding equity interest. Orbograph is engaged in the development and marketing of character recognition solutions to banks, financial and other payment processing institutions and healthcare providers. During the fourth quarter of fiscal 2020, we entered into an Asset Purchase Agreement to sell certain core assets of our non-strategic solar energy business, Orbotech LT Solar, LLC ("OLTS"). The sale was completed in the first quarter of fiscal 2021 and the proceeds were not material. We consolidate the results of OLTS, of which we own 97% of the outstanding equity interest as of December 31, 2020. OLTS was engaged in the research, development and marketing of products for the deposition of thin film coating of various materials on crystalline silicon photovoltaic wafers for solar energy panels through plasma-enhanced chemical vapor deposition (“PECVD”). Additionally, we have consolidated the results of PixCell Medical Technologies, Ltd. ("PixCell"), an Israeli company that is engaged in the development, marketing and sales of diagnostic equipment for point-of-care hematology applications of which we own approximately 52% of the outstanding equity interest and are entitled to appoint the majority of this company’s directors. In December 2020, we entered into a Share Purchase Agreement to sell our entire interest in PixCell for proceeds of approximately $21 million. This transaction is expected to be completed during the third quarter of fiscal 2021. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 6 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM Our Board of Directors has authorized a program which permits us to repurchase up to $3.00 billion of our common stock. The intent of this program is to offset the dilution from our equity incentive plans, shares issued in connection with purchases under our ESPP, the issuance of shares in the Orbotech Acquisition, as well as to return excess cash to our stockholders. Subject to market conditions, applicable legal requirements and other factors, the repurchases were made in the open market in compliance with applicable securities laws, including the Securities Exchange Act of 1934 and the rules promulgated thereunder, such as Rule 10b-18 and, if pursuant to a written plan, Rule 10b5-1. This stock repurchase program has no expiration date and may be suspended at any time. As of December 31, 2020, an aggregate of approximately $0.67 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 Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Number of shares of common stock repurchased 774 1,690 1,801 3,349 Total cost of repurchases $ 177,492 $ 280,593 $ 371,389 $ 509,089 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated by using the weighted-average number of common shares outstanding during the period, increased to include the number of additional shares of common stock that would have been outstanding if the shares of common stock underlying our outstanding dilutive restricted stock units had been issued. The dilutive effect of outstanding restricted stock units is reflected in diluted net income per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted net income per share attributable to KLA: Three Months Ended Six Months Ended (In thousands, except per share amounts) December 31, December 31, 2020 2019 2020 2019 Numerator: Net income attributable to KLA $ 457,251 $ 380,555 $ 877,818 $ 727,080 Denominator: Weighted-average shares - basic, excluding unvested restricted stock units 154,273 157,290 154,777 157,994 Effect of dilutive restricted stock units and options 1,287 1,330 1,280 1,320 Weighted-average shares - diluted 155,560 158,620 156,057 159,314 Basic net income per share attributable to KLA $ 2.96 $ 2.42 $ 5.67 $ 4.60 Diluted net income per share attributable to KLA $ 2.94 $ 2.40 $ 5.62 $ 4.56 Anti-dilutive securities excluded from the computation of diluted net income per share — 43 — 25 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table provides details of income taxes: Three Months Ended Six Months Ended December 31, December 31, (Dollar amounts in thousands) 2020 2019 2020 2019 Income before income taxes $ 527,402 $ 424,927 $ 1,011,208 $ 796,443 Provision for income taxes $ 70,419 $ 44,622 $ 134,083 $ 69,742 Effective tax rate 13.4 % 10.5 % 13.3 % 8.8 % Our effective tax rate is lower than the U.S. federal statutory rate during the three and six months ended December 31, 2020 primarily due to the proportion of earnings generated in jurisdictions with tax rates lower than the U.S. statutory rate and the proportion of the U.S. earnings eligible for the Foreign Derived Intangible Income deduction. The Foreign Derived Intangible Income deduction reduces the U.S. tax rate on sales to customers outside the U.S. In the normal course of business, we are subject to examination by tax authorities throughout the world. We are subject to United States income tax examinations for all years beginning from the fiscal year ended June 30, 2017 and are under United States income tax examination for the fiscal year ended June 30, 2018. We are subject to state income tax examinations for all years beginning from the fiscal year ended June 30, 2016. We are also subject to examinations in other major foreign jurisdictions, including Singapore and Israel, for all years beginning from the calendar year ended December 31, 2012. We are under audit in Germany related to Orbotech for the calendar years ended December 31, 2013 to December 31, 2015. We are also under audit in Israel related to KLA for the fiscal years ended June 30, 2017 to June 30, 2019. It is possible that certain examinations may be concluded in the next twelve months. The timing and resolution of income tax examinations is uncertain. The amounts paid, if any, upon resolution of issues raised by the taxing authorities may differ materially from the amounts accrued for each year. Although it is possible that our balance of gross unrecognized tax benefits could materially change in the next 12 months, we are unable to estimate the full range of possible adjustments to this balance given the uncertainty in the development of ongoing income tax examinations. In May 2017, Orbotech received an assessment from the Israel Tax Authority (“ITA”) with respect to its fiscal years 2012 through 2014 (the “Assessment”), for an aggregate amount of tax, after offsetting all net operating losses (“NOLs”) available through the end of 2014, of approximately NIS 229.0 million (equivalent to approximately $66.0 million which includes related interest and linkage differentials to the Israeli consumer price index as of date of the issuance of the Tax Decrees, as defined below). On August 31, 2018, Orbotech filed an objection in respect of the Assessment (the “Objection”). The ITA completed the second stage of the audit, in which the claims Orbotech raised in the Objection were examined by different personnel at the ITA. In addition, the ITA examined additional items during this second stage of the audit. As Orbotech and the ITA did not reach an agreement during the second stage, the ITA issued Tax Decrees to Orbotech on August 28, 2019 (“Tax Decrees”) for an aggregate amount of tax, after offsetting all NOLs available through the end of 2014, of approximately NIS 257.0 million (equivalent to approximately $73.0 million which includes related interest and linkage differentials to the Israeli consumer price index as of the date of the issuance of the Tax Decrees). These Tax Decrees replaced the Assessment. We believe that our recorded unrecognized tax benefits are sufficient to cover the resolution of these Tax Decrees. Orbotech filed a notice of appeal with respect to the above Tax Decrees with the District Court of Tel Aviv on September 26, 2019. On February 27, 2020 the ITA filed its arguments in support of the Tax Decrees. Orbotech filed the grounds of appeal with respect to the above Tax Decrees on July 30, 2020. We are currently in the pre-trial hearing stage of the process and the next pre-trial meeting is scheduled for April 2021. The ITA and Orbotech are continuing discussions in an effort to resolve this matter in a mutually agreeable manner. In connection with the above, there is an ongoing criminal investigation in Israel against Orbotech, certain of its employees and its tax consultant. On April 11, 2018, Orbotech received a “suspect notification letter” (dated March 28, 2018) from the Tel Aviv District Attorney’s Office (Fiscal and Financial). In the letter, it was noted that the investigation file was transferred from the Assessment Investigation Officer to the District Attorney’s Office. The letter further states that the District Attorney’s Office has not yet made a decision regarding submission of an indictment against Orbotech; and that if after studying the case, a decision is made to consider prosecuting Orbotech, Orbotech will receive an additional letter and, within 30 days, Orbotech may present its arguments to the District Attorney’s Office as to why it should not be indicted. On October 27, 2019, we received a request for additional information from the District Attorney's Office. We will continue to monitor the progress of the District Attorney’s Office investigation; however, we cannot anticipate when the review of the case will be completed and what will be the results thereof. We intend to cooperate with the District Attorney’s Office to enable them to conclude their investigation. In December 2020, Orbotech received an assessment from the ITA with respect to its fiscal years 2015 through 2018 (the “Second Assessment”) for an aggregate amount of tax, after offsetting all NOLs available through the end of 2018, of approximately NIS 227.0 million (equivalent to approximately $68.0 million which includes related interest and linkage differentials to the Israeli consumer price index as of date of the issuance of the Second Assessment). We are filing an objection to the Second Assessment with the ITA. The objection will result in moving the 2015-2018 audit to the second stage, in which the ITA will review the objections. We believe that our recorded unrecognized tax benefits are sufficient to cover the resolution of the Second Assessment. |
LITIGATION AND OTHER LEGAL MATT
LITIGATION AND OTHER LEGAL MATTERS | 6 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION AND OTHER LEGAL MATTERS | LITIGATION AND OTHER LEGAL MATTERSWe are named from time to time as a party to lawsuits and other types of legal proceedings and claims in the normal course of our business. Actions filed against us include commercial, intellectual property, customer, and labor and employment related claims, including complaints of alleged wrongful termination and potential class action lawsuits regarding alleged violations of federal and state wage and hour and other laws. In general, legal proceedings and claims, regardless of their merit, and associated internal investigations (especially those relating to intellectual property or confidential information disputes) are often expensive to prosecute, defend or conduct and may divert management’s attention and other company resources. Moreover, the results of legal proceedings are difficult to predict, and the costs incurred in litigation can be substantial, regardless of outcome. We believe the amounts provided in our Condensed Consolidated Financial Statements are adequate in light of the probable and estimated liabilities. However, because such matters are subject to many uncertainties, and the ultimate outcomes are not predictable, there can be no assurances that the actual amounts required to satisfy alleged liabilities from the matters described above will not exceed the amounts reflected in our Condensed Consolidated Financial Statements or will not have a material adverse effect on our results of operations, financial condition or cash flows. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Factoring. We have agreements (referred to as “factoring agreements”) with financial institutions to sell certain of our trade receivables and promissory notes from customers without recourse. We do not believe we are at risk for any material losses as a result of these agreements. In addition, we periodically sell certain letters of credit (“LCs”), 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 LCs for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Receivables sold under factoring agreements $ 49,917 $ 116,935 $ 138,562 $ 173,355 Proceeds from sales of LCs $ 21,709 $ 10,677 $ 40,839 $ 20,606 Factoring and LC fees for the sale of certain trade receivables were recorded in other expense (income), net and were not material for the periods presented. Purchase Commitments. We maintain commitments to purchase inventory from our suppliers as well as goods, services, and other assets in the ordinary course of business. Our liability under these purchase commitments is generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time-horizon can vary among different suppliers. Our estimate of our significant purchase commitments for primarily material, services, supplies and asset purchases is approximately $994.9 million as of December 31, 2020, which are primarily due within the next 12 months. Actual expenditures will vary based upon the volume of the transactions and length of contractual service provided. In addition, the amounts paid under these arrangements may be less in the event that the arrangements are renegotiated or canceled. Certain agreements provide for potential cancellation penalties. Cash Long-Term Incentive Plan. As of December 31, 2020, we have committed $188.7 million for future payment obligations under our Cash LTI Plan. The calculation of compensation expense related to the Cash LTI Plan includes estimated forfeiture rate assumptions. Cash LTI awards issued to employees under the Cash LTI Plan vest in three or four equal installments, with one-third or one-fourth of the aggregate amount of the Cash LTI award vesting on each anniversary of the grant date over a three Guarantees and Contingencies. We maintain guarantee arrangements available through various financial institutions for up to $73.8 million, of which $62.8 million had been issued as of December 31, 2020, primarily to fund guarantees to customs authorities for value-added tax (“VAT”) and other operating requirements of our subsidiaries in Europe, Israel and Asia. Indemnification Obligations. Subject to certain limitations, we are obligated to indemnify our current and former directors, officers and employees with respect to certain litigation matters and investigations that arise in connection with their service to us. These obligations arise under the terms of our certificate of incorporation, our bylaws, applicable contracts, and Delaware and California law. The obligation to indemnify generally means that we are required to pay or reimburse the individuals’ reasonable legal expenses and possibly damages and other liabilities incurred 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 by several of our current and former directors, officers and employees. 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 from, or provides customers with other remedies to protect against, bodily injury or damage to personal property caused by our products, non-compliance with our product performance specifications, infringement by our products of third-party intellectual property rights and a breach of warranties, representations and covenants related to matters such as title to assets sold, validity of certain intellectual property rights, non-infringement of third-party rights, and certain income tax-related matters. In each of these circumstances, payment by us is typically subject to the other party making a claim to and cooperating with us pursuant to the procedures specified in the particular contract. This usually allows us to challenge the other party’s claims or, in case of breach of intellectual property representations or covenants, to control the defense or settlement of any third-party claims brought against the other party. Further, our obligations under these agreements may be limited in terms of amounts, activity (typically at our option to replace or correct the products or terminate the agreement with a refund to the other party), and duration. In some instances, we may have recourse against third parties and/or insurance covering certain payments made by us. In addition, we may in limited circumstances enter into agreements that contain customer-specific commitments on pricing, tool reliability, spare parts stocking levels, response time and other commitments. Furthermore, we may give these customers limited audit or inspection rights to enable them to confirm that we are complying with these commitments. If a customer elects to exercise its audit or inspection rights, we may be required to expend significant resources to support the audit or inspection, as well as to defend or settle any dispute with a customer that could potentially arise out of such audit or inspection. To date, we have made no significant accruals in our Condensed Consolidated Financial Statements for this contingency. While we have not in the past incurred significant expenses for resolving disputes regarding these types of commitments, we cannot make any assurance that we will not incur any such liabilities in the future. It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material effect on our business, financial condition, results of operations or cash flows. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The authoritative guidance requires companies to recognize all derivative instruments and hedging activities, including foreign currency exchange contracts and interest rate lock agreements, (collectively “derivatives”) as either assets or liabilities at fair value on the Condensed Consolidated Balance Sheets. In accordance with the accounting guidance, we designate foreign currency exchange contracts and interest rate lock agreements as cash flow hedges of certain forecasted foreign currency denominated sales, purchase and spending transactions, and the benchmark interest rate of the corresponding debt financing, respectively. Our foreign subsidiaries operate and sell our products in various global markets. As a result, we are exposed to risks relating to changes in foreign currency exchange rates. We utilize foreign currency forward exchange contracts and option contracts to hedge against future movements in foreign exchange rates that affect certain existing and forecasted foreign currency denominated sales and purchase transactions, such as the Japanese yen, the euro, the pound sterling and the Israeli new shekel. We routinely hedge our exposures to certain foreign currencies with various financial institutions in an effort to minimize the impact of certain currency exchange rate fluctuations. These currency forward exchange contracts and options, designated as cash flow hedges, generally have maturities of less than 18 months. Cash flow hedges are evaluated for effectiveness monthly, based on changes in total fair value of the derivatives. If a financial counterparty to any of our hedging arrangements experiences financial difficulties or is otherwise unable to honor the terms of the foreign currency hedge, we may experience material losses. In January 2020, we entered into a series of forward contracts (the “2020 Rate Lock Agreements”) with a notional amount of $350.0 million in aggregate to lock the benchmark interest rate on a portion of the 2020 Senior Notes. The 2020 Rate Lock Agreements were terminated on the date of the pricing of the 2020 Senior Notes and we recorded the fair value of $21.5 million as a loss within accumulated other comprehensive income (loss) (“OCI”) as of March 31, 2020, which is being amortized over the life of the debt. We entered into similar forward contracts in prior years to lock the benchmark interest rates prior to expected debt issuances, for which the original fair values of $13.6 million loss in fiscal 2019 and $7.5 million gain in fiscal 2015 were recognized in OCI, and are being amortized to interest expense over the lives of the associated debt. We recognized a net expense of $0.3 million and $0.6 million for the three and six months ended December 31, 2020, respectively, and a net expense of $0.1 million and $0.2 million for the three and six months ended December 31, 2019, respectively, for the amortization of the net of the three rate lock agreements that had been recognized in accumulated OCI, which increased the interest expense on a net basis. As of December 31, 2020, the aggregate unamortized portion of the fair value of the forward contracts for the Rate Lock Agreements was $29.6 million. For derivatives that are designated and qualify as cash flow hedges, the effective portion of the gains or losses is reported in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Prior to adopting the new accounting guidance for hedge accounting, time value was excluded from the assessment of effectiveness for derivatives designated as cash flow hedges. Time value was amortized on a mark-to-market basis and recognized in earnings over the life of the derivative contract. For derivative contracts executed after adopting the new accounting guidance, the election to include time value for the assessment of effectiveness is made on all forward contracts designated as cash flow hedges. The change in fair value of the derivative is recorded in OCI until the hedged item is recognized in earnings. The assessment of effectiveness of options contracts designated as cash flow hedges continue to exclude time value after adopting the new accounting guidance. The initial value of the component excluded from the assessment of effectiveness is recognized in earnings over the life of the derivative contract. Any difference between change in the fair value of the excluded components and the amounts recognized in earnings are recorded in OCI. For derivatives that are not designated as cash flow hedges, gains and losses are recognized in other expense (income), net. We use foreign currency forward contracts to hedge certain foreign currency denominated assets or liabilities. The gains and losses on these derivative instruments are largely offset by the changes in the fair value of the assets or liabilities being hedged. Derivatives in Cash Flow Hedging Relationships: Foreign Exchange and Interest Rate Contracts The gains (losses) on derivatives in cash flow hedging relationships recognized in OCI for the indicated periods were as follows: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Derivatives Designated as Hedging Instruments: Foreign exchange contracts: Amounts included in the assessment of effectiveness $ (1,310) $ 2,305 $ (2,182) 1,565 Amounts excluded from the assessment of effectiveness $ (47) $ (15) $ (93) $ (17) The locations and amounts of designated and non-designated derivative’s gains and losses reported in the Condensed Consolidated Statements of Operations for the indicated periods were as follows: Three Months Ended December 31, Three Months Ended December 31, 2020 2019 (In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost 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 $ 1,650,870 $ 1,080,706 $ 38,880 $ 3,882 $ 1,509,453 $ 1,046,622 $ 40,472 $ (2,568) Gains (losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from accumulated OCI to earnings $ — $ — $ (279) $ — $ — $ — $ (100) $ — Foreign exchange contracts: Amount of gains (losses) reclassified from accumulated OCI to earnings $ (560) $ (125) $ — $ — $ 85 $ (17) $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach $ (151) $ — $ — $ — $ (93) $ — $ — $ — Gains (losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ 2,661 $ — $ — $ — $ 2,056 Six Months Ended December 31, Six Months Ended December 31, 2020 2019 (In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Total amounts presented in the Condensed Consolidated Statement of Operations in which the effects of cash flow hedges are recorded $ 3,189,490 $ 2,092,937 $ 78,266 $ 7,079 $ 2,922,867 $ 2,049,788 $ 80,822 $ (4,186) Gains (losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from accumulated OCI to earnings $ — $ — $ (558) $ — $ — $ — $ (199) $ — Foreign exchange contracts: Amount of gains (losses) reclassified from accumulated OCI to earnings $ (650) $ 425 $ — $ — $ 560 $ (1,818) $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach $ (278) $ — $ — $ — $ (195) $ — $ — $ — Gains (losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ (2,937) $ — $ — $ — $ 4,381 The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts, with maximum remaining maturities of approximately thirteen months as of the dates indicated below were as follows: As of As of (In thousands) December 31, 2020 June 30, 2020 Cash flow hedge contracts - foreign currency Purchase $ 8,344 $ 10,705 Sell $ 95,706 $ 71,431 Other foreign currency hedge contracts Purchase $ 311,397 $ 329,310 Sell $ 321,076 $ 357,939 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 December 31, 2020 June 30, 2020 Location December 31, 2020 June 30, 2020 (In thousands) Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts Other current assets $ 311 $ 680 Other current liabilities $ 981 $ 45 Total derivatives designated as hedging instruments 311 680 981 45 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets 2,349 1,397 Other current liabilities 2,860 1,365 Total derivatives not designated as hedging instruments 2,349 1,397 2,860 1,365 Total derivatives $ 2,660 $ 2,077 $ 3,841 $ 1,410 The changes in OCI, before taxes, related to derivatives for the indicated periods were as follows: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Beginning balance $ (30,574) $ (10,006) $ (29,602) $ (10,791) Amount reclassified to earnings 1,115 125 1,061 1,652 Net change in unrealized gains or losses (1,357) 2,290 (2,275) 1,548 Ending balance $ (30,816) $ (7,591) $ (30,816) $ (7,591) Offsetting of Derivative Assets and Liabilities We present derivatives at gross fair values in the Condensed Consolidated Balance Sheets. We have entered into arrangements with each of our counterparties, which reduce credit risk by permitting net settlement of transactions with the same counterparty under certain conditions. The information related to the offsetting arrangements for the periods indicated was as follows (in thousands): As of December 31, 2020 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 2,660 $ — $ 2,660 $ (1,527) $ — $ 1,133 Derivatives - Liabilities $ (3,841) $ — $ (3,841) $ 1,527 $ — $ (2,314) As of June 30, 2020 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 2,077 $ — $ 2,077 $ (1,020) $ — $ 1,057 Derivatives - Liabilities $ (1,410) $ — $ (1,410) $ 1,020 $ — $ (390) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the three and six months ended December 31, 2020 and 2019, we purchased from, or sold to, several entities, where one or more of our executive officers or members of our Board of Directors, or their immediate family members, were, during the periods presented, an executive officer or a board member of a subsidiary, or in the case of The Vanguard Group, Inc. beneficially owns more than 10% of our outstanding stock, including Anaplan, Inc., Citrix Systems, Inc., HP Inc., Keysight Technologies, Inc. and Proofpoint, Inc. The following table provides the transactions with these parties for the indicated periods (for the portion of such period that they were considered related): Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Total revenues $ 324 $ 2,794 $ 638 $ 3,835 Total purchases $ 279 $ 249 $ 571 $ 714 |
SEGMENT REPORTING AND GEOGRAPHI
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION | SEGMENT REPORTING AND GEOGRAPHIC INFORMATION ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. We have four reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other. The reportable segments are determined based on several factors including, but not limited to, customer base, homogeneity of products, technology, delivery channels and similar economic characteristics. Semiconductor Process Control The Semiconductor Process Control (“SPC”) segment offers a comprehensive portfolio of inspection, metrology and data analytics products, and related service, which helps integrated circuit ("ICs") manufacturers achieve target yield throughout the entire semiconductor fabrication process-from research and development (“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 Manufacturing segment develops and sells advanced vacuum deposition and etching process tools, which are used by a broad range of specialty semiconductor customers, including manufacturers of microelectromechanical systems (“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 printed circuit boards (“PCBs”), flat panel displays (“FPDs”) and ICs to verify their quality, pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces. This segment also engages in the development and marketing of character recognition solutions to banks, financial and other payment processing institutions and healthcare providers. This reportable segment is comprised of two operating segments, PCB and Display and Component Inspection. Other During the fourth quarter of fiscal 2020, we entered into an Asset Purchase Agreement to sell certain core assets of our non-strategic solar energy business, which was included in our Other reportable segment. This reportable segment remains comprised of one operating segment. The CODM assesses the performance of each operating segment and allocates resources to those segments based on total revenues and segment gross margin and does not evaluate the segments using discrete asset information. Segment gross margin excludes corporate allocations and effects of foreign exchange rates, amortization of intangible assets, amortization of inventory fair value adjustments, and transaction costs associated with our acquisitions related to costs of revenues. The following is a summary of results for each of our four reportable segments for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Semiconductor Process Control: Revenues $ 1,380,184 $ 1,247,430 $ 2,648,138 $ 2,411,062 Segment gross margin 884,090 795,730 1,698,900 1,538,072 Specialty Semiconductor Process: Revenues 90,587 75,106 179,540 144,245 Segment gross margin 51,171 41,333 101,099 79,497 PCB, Display and Component Inspection: Revenues 179,267 186,279 360,444 364,831 Segment gross margin 84,584 82,538 174,753 158,606 Other: Revenues 449 517 590 2,748 Segment gross margin (121) 117 (108) 770 Totals: Revenues for reportable segments $ 1,650,487 $ 1,509,332 $ 3,188,712 $ 2,922,886 Segment gross margin $ 1,019,724 $ 919,718 $ 1,974,644 $ 1,776,945 The following table reconciles total reportable segment revenues to total revenues for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Total revenues for reportable segments $ 1,650,487 $ 1,509,332 $ 3,188,712 $ 2,922,886 Corporate allocations and effects of foreign exchange rates 383 121 778 (19) Total revenues $ 1,650,870 $ 1,509,453 $ 3,189,490 $ 2,922,867 The following table reconciles total segment gross margin to total income before income taxes for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Total segment gross margin $ 1,019,724 $ 919,718 $ 1,974,644 $ 1,776,945 Acquisition-related charges, corporate allocations, and effects of foreign exchange rates (1) 38,587 43,883 75,449 91,937 Research and development 229,064 220,751 448,102 431,331 Selling, general and administrative 181,909 192,253 354,540 380,598 Interest expense 38,880 40,472 78,266 80,822 Other expense (income), net 3,882 (2,568) 7,079 (4,186) Income before income taxes $ 527,402 $ 424,927 $ 1,011,208 $ 796,443 __________________ (1) Acquisition-related charges primarily include amortization of intangible assets and amortization of inventory fair value adjustments presented as part of costs of revenues. Our significant operations outside the United States include manufacturing facilities in China, Germany, Israel and Singapore and sales, marketing and service offices in Japan, the rest of the Asia Pacific region and Europe. For geographical revenue reporting, revenues are attributed to the geographic location in which the customer is located. Long-lived assets consist of land, property and equipment, net and are attributed to the geographic region in which they are located. The following is a summary of revenues by geographic region, based on ship-to location, for the indicated periods: (Dollar amounts in thousands) Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Revenues: China $ 382,157 23 % $ 381,752 25 % $ 868,246 27 % $ 727,608 25 % Taiwan 380,785 23 % 447,083 30 % 749,886 24 % 833,812 28 % Korea 347,947 21 % 181,948 12 % 537,465 17 % 379,398 13 % North America 214,808 13 % 158,517 11 % 384,984 12 % 340,500 12 % Japan 156,721 10 % 194,804 13 % 321,140 10 % 401,015 14 % Europe and Israel 100,201 6 % 97,466 6 % 183,318 6 % 156,849 5 % Rest of Asia 68,251 4 % 47,883 3 % 144,451 4 % 83,685 3 % Total $ 1,650,870 100 % $ 1,509,453 100 % $ 3,189,490 100 % $ 2,922,867 100 % The following is a summary of revenues by major products for the indicated periods: (Dollar amounts in thousands) Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Revenues: Wafer Inspection $ 687,030 42 % $ 606,131 40 % $ 1,206,581 38 % $ 1,054,405 36 % Patterning 307,512 19 % 289,078 19 % 678,444 21 % 671,736 23 % Specialty Semiconductor Process 71,978 4 % 60,941 4 % 146,005 5 % 117,811 4 % PCB, Display and Component Inspection 115,825 7 % 129,235 9 % 236,451 7 % 249,595 9 % Services 412,847 25 % 364,903 24 % 805,972 25 % 720,342 24 % Other 55,678 3 % 59,165 4 % 116,037 4 % 108,978 4 % Total $ 1,650,870 100 % $ 1,509,453 100 % $ 3,189,490 100 % $ 2,922,867 100 % Wafer Inspection, and Patterning products are offered in 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 which are part of Semiconductor Process Control segment. In the three months ended December 31, 2020, two customers each accounted for approximately 14% of total revenues. In the three months ended December 31, 2019, two customers accounted for approximately 24% and 10% of total revenues. In the six months ended December 31, 2020, two customers accounted for approximately 14% and 13% of total revenues. In the six months ended December 31, 2019, two customers accounted for approximately 21% and 11% of total revenues. Two customers on an individual basis accounted for greater than 10% of net accounts receivable at December 31, 2020 and one customer on an individual basis accounted for greater than 10% of net accounts receivable at June 30, 2020. Land, property and equipment, net by geographic region as of the dates indicated below were as follows: As of As of (In thousands) December 31, 2020 June 30, 2020 Land, property and equipment, net: United States $ 391,080 $ 329,558 Israel 57,562 59,162 Singapore 68,027 54,946 Europe 55,979 58,065 Rest of Asia 21,537 18,093 Total $ 594,185 $ 519,824 |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 6 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES In September 2019, management approved a plan to streamline our organization and business processes that included the reduction of workforce, which is expected to be completed in the second half of our fiscal year 2021, primarily in our PCB, Display and Component Inspection segment. Restructuring charges were $4.6 million for the three months ended December 31, 2020, and included $1.0 million of non-cash charges for accelerated depreciation related to certain right-of use assets and fixed assets to be abandoned. Restructuring charges were $8.1 million for the six months ended December 31, 2020, and included $2.0 million of non-cash charges for accelerated depreciation related to certain right-of use assets and fixed assets to be abandoned. As of December 31, 2020, and June 30, 2020, the accrual for restructuring charges was $8.7 million and $5.7 million, respectively. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. For purposes of this report, “KLA,” the “Company,” “we,” “our,” “us,” or similar references mean KLA Corporation, and its majority-owned subsidiaries unless the context requires otherwise. The Condensed Consolidated Financial Statements have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. 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, 2020. The Condensed Consolidated Financial Statements include the accounts of KLA and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. On February 20, 2019 ("Acquisition Date"), we completed the acquisition of Orbotech Ltd. ("Orbotech") hereinafter referred to as the "Orbotech Acquisition". The results of operations for the three and six months ended December 31, 2020 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, 2021. Certain reclassifications have been made to the prior year’s Condensed Consolidated Financial Statements to conform to the current year presentation. The reclassifications did not have material effects on the prior year’s Condensed Consolidated Balance Sheets, Statements of Operations, Comprehensive Income and Cash Flows. |
Management Estimates | Management Estimates. The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in applying our accounting policies that affect the reported amounts of assets and liabilities (and related disclosure of contingent assets and liabilities) at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Credit Losses | Credit Losses Cash Equivalents and Marketable Securities . All highly liquid debt instruments with original or remaining maturities of less than three months at the date of purchase are cash equivalents. Marketable securities are generally classified as available-for-sale for use in current operations, if required, and are reported at fair value, with unrealized gains and non-credit related unrealized losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income (loss)” (“AOCI”). All realized gains and losses are recorded in earnings in the period of occurrence. The specific identification method is used to determine the realized gains and losses on investments. We regularly review the available-for-sale debt securities in an unrealized loss position, and evaluate the current expected credit loss by considering available information relevant to the collectibility of the security, such as historical experience, market data, issuer-specific factors including credit ratings, default and loss rates of the underlying collateral and structure and credit enhancements, current economic conditions and reasonable and supportable forecasts. If we do not expect to recover the entire amortized cost of the security, the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security, is recorded as an allowance for credit losses with an offsetting entry to earnings; and the amount that is not credit-related is recognized in other comprehensive income (loss). If we have the intent to sell the security or it is more likely than not that we will be required to sell the security before recovery of its entire amortized cost basis, we first write off any previously recognized allowance for credit losses with an offsetting entry to the security’s amortized cost basis. If the allowance has been fully written off and fair value is less than amortized cost basis, we write down the amortized cost basis of the security to its fair value with an offsetting entry to net income. There were no credit losses on available-for-sale debt securities recognized for the three and six months ended December 31, 2020 and 2019. Allowance for Credit Losses . A majority of our accounts receivable are derived from sales to large multinational semiconductor and electronics manufacturers throughout the world. We maintain an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable and changes in such are classified as selling, general and administrative expense in the Condensed Consolidated Statements of Income. We assess collectibility by reviewing accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The allowance for credit losses is reviewed on a quarterly basis to assess the adequacy of the allowance. For the three and six months ended December 31, 2020, our assessment considered the impact of COVID-19 and estimates of expected credit and collectability trends. The credit losses recognized were not significant for the three and six months ended December 31, 2020 and 2019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted As explained above, on July 1, 2020 we adopted ASC 326, which was issued by the Financial Accounting Board (“FASB”) in June 2016 as Accounting Standards Update ("ASU") No. 2016-13 Financial Instruments – Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments . The ASU replaced previous incurred loss impairment guidance and established a single expected credit losses allowance framework for financial assets carried at amortized cost. It also eliminated the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses. We adopted ASC 326 using the modified retrospective method, which requires a cumulative-effect adjustment to the opening balance of retained earnings to be recognized on the date of adoption and, accordingly, recorded a net decrease of $5.5 million to retained earnings as of July 1, 2020. Please see the “Credit Losses” accounting policy in the “Significant Accounting Policies” section above. In August 2018, the FASB issued an accounting standard update which modifies the existing accounting standards for the fair value measurement disclosure. This update eliminates the disclosures of the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy, and the policy for the timing of transfers between levels. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2021 on a retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued an accounting standard update to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. Some of the changes include adding a disclosure requirement for significant gains and losses related to changes in the benefit obligation for the period and removing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. We adopted this update beginning in the first quarter of the fiscal year ending June 30, 2021 on a retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued an accounting standard update to align the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance clarifies which costs should be capitalized, including the cost to acquire the license and the related implementation costs. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2021 on a prospective basis, and the adoption had no material impact on our Condensed Consolidated Financial Statements. Updates Not Yet Effective In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes in ASC 740, Income Taxes (“ASC 740”). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in ASC 740. The update is effective for us beginning in the first quarter of our fiscal year ending June 30, 2022, and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements. |
Fair Value Measurements | Our financial assets and liabilities are measured and recorded at fair value, except for our debt and certain equity investments in privately-held companies. Equity investments without a readily available fair value are accounted for using the measurement alternative. The measurement alternative is calculated as cost minus impairment, if any, plus or minus changes resulting from observable price changes. Our non-financial assets, such as goodwill, intangible assets, and land, property and equipment, are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. We have evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of our cash equivalents, accounts receivable, accounts payable and other current assets and liabilities approximate their carrying amounts due to the relatively short maturity of these items. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 (In thousands, except for percentage) December 31, 2020 June 30, 2020 $ Change % Change Accounts receivable, net $ 1,219,189 $ 1,107,413 $ 111,776 10 % Contract assets $ 94,375 $ 99,876 $ (5,501) (6) % Contract liabilities $ 603,029 $ 666,055 $ (63,026) (9) % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 795,712 $ 795,712 $ — $ — U.S. Treasury securities 15,400 — 15,400 — Marketable securities: Corporate debt securities 418,348 — 418,348 — Municipal securities 39,352 — 39,352 — Sovereign securities 3,059 — 3,059 — U.S. Government agency securities 146,096 146,096 — — U.S. Treasury securities 175,589 154,599 20,990 — Total cash equivalents and marketable securities (1) 1,593,556 1,096,407 497,149 — Other current assets: Derivative assets 2,660 — 2,660 — Other non-current assets: Executive Deferred Savings Plan 245,673 188,203 57,470 — Total financial assets (1) $ 1,841,889 $ 1,284,610 $ 557,279 $ — Liabilities Derivative liabilities $ (3,841) $ — $ (3,841) $ — Deferred payments (4,400) — — (4,400) Contingent consideration payable (7,214) — — (7,214) Total financial liabilities $ (15,455) $ — $ (3,841) $ (11,614) ________________ (1) Excludes cash of $542.7 million held in operating accounts and time deposits of $160.3 million as of December 31, 2020. 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, 2020 (In thousands) Total (Level 1) (Level 2) (Level 3) Assets Cash equivalents: Money market funds and other $ 694,950 $ 694,950 $ — $ — Marketable securities: Corporate debt securities 381,957 — 381,957 — Municipal securities 29,110 — 29,110 — Sovereign securities 2,017 — 2,017 — U.S. Government agency securities 106,336 106,336 — — U.S. Treasury securities 181,193 151,210 29,983 — Total cash equivalents and marketable securities (1) 1,395,563 952,496 443,067 — Other current assets: Derivative assets 2,077 — 2,077 — Other non-current assets: Executive Deferred Savings Plan 213,487 166,000 47,487 — Total financial assets (1) $ 1,611,127 $ 1,118,496 $ 492,631 $ — Liabilities Derivative liabilities $ (1,410) $ — $ (1,410) $ — Deferred payments (6,750) — — (6,750) Contingent consideration payable (15,513) — — (15,513) Total financial liabilities $ (23,673) $ — $ (1,410) $ (22,263) ________________ (1) Excludes cash of $460.8 million held in operating accounts and time deposits of $78.7 million as of June 30, 2020. |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet Components | Condensed Consolidated Balance Sheets As of As of (In thousands) December 31, 2020 June 30, 2020 Accounts receivable, net: Accounts receivable, gross $ 1,236,877 $ 1,119,235 Allowance for credit losses (17,688) (11,822) $ 1,219,189 $ 1,107,413 Inventories: Raw materials $ 525,002 $ 478,594 Customer service parts 355,908 338,608 Work-in-process 374,462 334,965 Finished goods 165,246 158,818 $ 1,420,618 $ 1,310,985 Other current assets: Contract assets $ 94,375 $ 99,876 Prepaid expenses 71,330 74,955 Deferred costs of revenue 58,793 77,219 Prepaid income and other taxes 37,744 56,809 Other current assets 24,375 15,816 $ 286,617 $ 324,675 Land, property and equipment, net: Land $ 67,867 $ 67,858 Buildings and leasehold improvements 436,180 405,238 Machinery and equipment 722,084 677,627 Office furniture and fixtures 32,429 29,964 Construction-in-process 126,656 93,736 1,385,216 1,274,423 Less: accumulated depreciation (791,031) (754,599) $ 594,185 $ 519,824 Other non-current assets: Executive Deferred Savings Plan (1) $ 245,673 $ 213,487 Operating lease right of use assets 103,430 100,790 Other non-current assets 54,380 48,702 $ 403,483 $ 362,979 Other current liabilities: Compensation and benefits $ 385,007 $ 251,379 Executive Deferred Savings Plan 245,976 215,167 Customer credits and advances 251,970 114,896 Other accrued expenses 156,916 183,435 Income taxes payable 116,091 35,640 Interest payable 36,176 36,265 Operating lease liabilities 31,220 28,994 $ 1,223,356 $ 865,776 Other non-current liabilities: Income taxes payable $ 362,164 $ 383,447 Pension liabilities 83,618 78,911 Operating lease liabilities 74,443 70,885 Other non-current liabilities 147,739 139,041 $ 667,964 $ 672,284 ________________ (1) We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense associated with changes in the EDSP liability included in selling, general and administrative expense was $22.1 million and $12.0 million during the three months ended December 31, 2020 and 2019, respectively and was $35.3 million and $13.9 million during the six months ended December 31, 2020 and 2019, respectively. The amount of net gains associated with changes in the EDSP assets included in selling, general and administrative expense was $22.2 million and $11.9 million during the three months ended December 31, 2020 and 2019, respectively and was $35.5 million and $14.2 million during the six months ended December 31, 2020 and 2019, respectively. For additional details, refer to Note 1 “Description of Business and Summary of Significant Accounting Policies” of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) (“OCI”) 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 Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance as of December 31, 2020 $ (30,806) $ 2,054 $ (24,204) $ (19,748) $ (72,704) Balance as of June 30, 2020 $ (43,957) $ 3,683 $ (23,250) $ (16,250) $ (79,774) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The effects on net income (loss) of amounts reclassified from accumulated OCI to the Condensed Consolidated Statements of Operations for the indicated period were as follows (in thousands): Three Months Ended Six Months Ended Location in the Condensed Consolidated December 31, December 31, Accumulated OCI Components Statements of Operations 2020 2019 2020 2019 Unrealized gains (losses) on cash flow hedges from foreign exchange and interest rate contracts Revenues $ (711) $ (8) $ (928) $ 365 Costs of revenues and operating expenses (125) (17) 425 (1,818) Interest expense (279) (100) (558) (199) Net gains (losses) reclassified from accumulated OCI $ (1,115) $ (125) $ (1,061) $ (1,652) Unrealized gains (losses) on available-for-sale securities Other expense (income), net $ (111) $ (82) $ (212) $ (86) |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 416,926 $ 1,445 $ (23) $ 418,348 Money market funds and other 795,712 — — 795,712 Municipal securities 39,190 165 (3) 39,352 Sovereign securities 3,056 3 — 3,059 U.S. Government agency securities 145,774 325 (3) 146,096 U.S. Treasury securities 190,282 708 (1) 190,989 Subtotal 1,590,940 2,646 (30) 1,593,556 Add: Time deposits (1) 160,301 — — 160,301 Less: Cash equivalents 888,792 1 — 888,793 Marketable securities $ 862,449 $ 2,645 $ (30) $ 865,064 As of June 30, 2020 (In thousands) Amortized Gross Gross Fair Corporate debt securities $ 379,334 $ 2,673 $ (50) $ 381,957 Money market funds and other 694,950 — — 694,950 Municipal securities 28,859 251 — 29,110 Sovereign securities 2,009 8 — 2,017 U.S. Government agency securities 106,091 252 (7) 106,336 U.S. Treasury securities 179,631 1,564 (2) 181,193 Subtotal 1,390,874 4,748 (59) 1,395,563 Add: Time deposits (1) 124,153 — — 124,153 Less: Cash equivalents 773,653 — — 773,653 Marketable securities $ 741,374 $ 4,748 $ (59) $ 746,063 ________________ (1) Time deposits excluded from fair value measurements. |
Schedule of Investments with Gross Unrealized Losses | The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the date indicated below, none of which were in a continuous loss position for 12 months or more: As of December 31, 2020 (In thousands) Fair Value Gross Corporate debt securities $ 47,474 $ (23) Municipal securities 6,478 (3) U.S. Government agency securities 6,504 (3) U.S. Treasury securities 29,252 (1) Total $ 89,708 $ (30) As of June 30, 2020 (In thousands) Fair Value Gross Corporate debt securities $ 44,429 $ (50) Municipal securities 870 — U.S. Government agency securities 9,951 (7) U.S. Treasury securities 19,010 (2) Total $ 74,260 $ (59) |
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 December 31, 2020 (In thousands) Amortized Cost Fair Value Due within one year $ 468,753 $ 470,247 Due after one year through three years 393,696 394,817 $ 862,449 $ 865,064 As of June 30, 2020 (In thousands) Amortized Cost Fair Value Due within one year $ 415,915 $ 418,169 Due after one year through three years 325,459 327,894 $ 741,374 $ 746,063 |
GOODWILL AND PURCHASED INTANG_2
GOODWILL AND PURCHASED INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Balances | The following table presents changes in goodwill carrying value during the six months ended December 31, 2020 (1) : (In thousands) Wafer Inspection and Patterning Global Service and Support ( “ GSS ” ) Specialty Semiconductor Process PCB and Display Component Inspection Total Balance as of June 30, 2020 $ 416,840 $ 25,908 $ 681,858 $ 907,221 $ 13,575 $ 2,045,402 Foreign currency adjustments 43 — — — — 43 Balance as of December 31, 2020 $ 416,883 $ 25,908 $ 681,858 $ 907,221 $ 13,575 $ 2,045,445 _________________ |
Schedule of Components of Purchased Intangible Assets | The components of purchased intangible assets as of the dates indicated below were as follows: As of As of (In thousands) December 31, 2020 June 30, 2020 Category Range of Useful Lives (in years) Gross Accumulated Net Gross Accumulated Net Existing technology 4-8 $ 1,373,458 $ 418,402 $ 955,056 $ 1,269,883 $ 342,623 $ 927,260 Customer relationships 4-9 305,817 115,070 190,747 305,817 98,754 207,063 Trade name / Trademark 4-7 117,383 46,355 71,028 117,383 39,216 78,167 Backlog and other <1-9 50,404 49,551 853 50,404 47,215 3,189 Intangible assets subject to amortization 1,847,062 629,378 1,217,684 1,743,487 527,808 1,215,679 In-process research and development 72,259 100 72,159 175,834 100 175,734 Total $ 1,919,321 $ 629,478 $ 1,289,843 $ 1,919,321 $ 527,908 $ 1,391,413 |
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 Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Amortization expense - Cost of revenues $ 38,738 $ 36,364 $ 75,778 $ 71,985 Amortization expense - Selling, general and administrative 12,301 20,257 25,730 42,513 Amortization expense - Research and development 31 131 62 162 Total $ 51,070 $ 56,752 $ 101,570 $ 114,660 |
Schedule of Remaining Estimated Amortization Expense | Based on the purchased intangible assets gross carrying amount recorded as of December 31, 2020, the remaining estimated annual amortization expense is expected to be as follows: Fiscal year ending June 30: Amortization (In thousands) 2021 (remaining six months) $ 104,418 2022 208,186 2023 207,094 2024 204,577 2025 192,368 2026 and thereafter 301,041 Total $ 1,217,684 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our debt as of December 31, 2020 and June 30, 2020: As of December 31, 2020 As of June 30, 2020 Amount Effective Amount Effective Fixed-rate 4.650% Senior Notes due on November 1, 2024 $ 1,250,000 4.682 % $ 1,250,000 4.682 % Fixed-rate 5.650% Senior Notes due on November 1, 2034 250,000 5.670 % 250,000 5.670 % Fixed-rate 4.100% Senior Notes due on March 15, 2029 800,000 4.159 % 800,000 4.159 % Fixed-rate 5.000% Senior Notes due on March 15, 2049 400,000 5.047 % 400,000 5.047 % Fixed-rate 3.300% Senior Notes due on March 1, 2050 750,000 3.302 % 750,000 3.302 % Revolving Credit Facility — — % 50,000 1.310 % Fixed-rate 3.47% Note Payable due on February 20, 2021 20,000 2.050 % — — % Fixed-rate 3.59% Note Payable due on February 20, 2022 20,000 2.300 % — — % Total 3,490,000 3,500,000 Unamortized discount/premium, net (7,421) (8,167) Unamortized debt issuance costs (21,114) (22,163) Total $ 3,461,465 $ 3,469,670 Reported as: Short-term debt $ 20,000 $ — Long-term debt 3,441,465 3,469,670 Total $ 3,461,465 $ 3,469,670 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Leases Cost | Supplemental cash flow information related to leases was as follows: Six Months Ended December 31, In thousands 2020 2019 Operating cash outflows from operating leases $ 19,253 $ 17,424 ROU assets obtained in exchange for new operating lease liabilities $ 20,584 $ 10,278 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 were as follows: Fiscal year ending June 30: Amount 2021 (remaining six months) $ 17,727 2022 28,811 2023 19,987 2024 13,358 2025 11,242 2026 and thereafter 19,823 Total lease payments 110,948 Less imputed interest (5,285) Total $ 105,663 |
EQUITY, LONG-TERM INCENTIVE C_2
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Combined Activity Under Equity Incentive Plans | The following table summarizes the combined activity under our equity incentive plans: (In thousands) Available For Grant (1) (2) Balance as of June 30, 2020 10,760 Restricted stock units granted (3) (619) Restricted stock units granted adjustment (4) 54 Restricted stock units canceled 88 Balance as of December 31, 2020 10,283 __________________ (1) The number of RSUs reflects the application of the award multiplier of 2.0x to calculate the impact of the award on the shares reserved under the 2004 Plan. (2) No additional stock options, RSUs or other awards will be granted under the Assumed Equity Plans. (3) Includes RSUs granted to senior management during the six months ended December 31, 2020 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such RSUs that are deemed to have been earned) (“performance-based RSUs”). This line item includes all such performance-based RSUs granted during the six months ended December 31, 2020 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 six months ended December 31, 2020 reflects the application of the multiplier described above). (4) Represents the portion of RSUs granted with performance-based vesting criteria and reported at the actual number of shares issued upon achievement of the performance vesting criteria during the six months ended December 31, 2020. |
Schedule of Stock-based Compensation Expense | The following table shows stock-based compensation expense for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Stock-based compensation expense by: Costs of revenues $ 4,104 $ 3,362 $ 7,771 $ 6,226 Research and development 5,225 5,073 10,696 10,360 Selling, general and administrative 17,498 18,354 35,352 37,147 Total stock-based compensation expense $ 26,827 $ 26,789 $ 53,819 $ 53,733 |
Schedule of Stock-based Compensation Capitalized as Inventory | The following table shows stock-based compensation capitalized as inventory as of the dates indicated below: As of As of (In thousands) December 31, 2020 June 30, 2020 Inventory $ 5,855 $ 6,752 |
Schedule of Restricted Stock Activity | The following table shows the activity and weighted-average grant date fair value for RSUs during the six months ended December 31, 2020: Shares (1) (In thousands) Weighted-Average Outstanding restricted stock units as of June 30, 2020 (2) 2,253 $ 107.33 Granted (3) 309 $ 202.60 Granted adjustments (27) $ 88.96 Vested and released (341) $ 98.54 Withheld for taxes (172) $ 98.54 Forfeited (51) $ 117.20 Outstanding restricted stock units as of December 31, 2020 (2) 1,971 $ 124.58 __________________ (1) Share numbers reflect actual shares subject to awarded RSUs. (2) Includes performance-based and market-based RSUs. (3) This line item includes performance-based RSUs granted during the six months ended December 31, 2020 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 six months ended December 31, 2020). |
Schedule of Grant Date Fair Value, Weighted Average Grant Date Fair Value, and Tax Benefits for Restricted Stock Units | The following table shows the weighted-average grant date fair value per unit for the RSUs granted, vested, and tax benefits realized by us in connection with vested and released RSUs for the indicated periods : Three Months Ended Six Months Ended December 31, December 31, (In thousands, except for weighted-average grant date fair value) 2020 2019 2020 2019 Weighted-average grant date fair value per unit $ 220.53 $ 171.98 $ 202.60 $ 142.75 Grant date fair value of vested restricted stock units $ 23,267 $ 26,643 $ 50,569 $ 56,736 Tax benefits realized by us in connection with vested and released restricted stock units $ 6,694 $ 9,661 $ 13,431 $ 13,654 |
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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 Stock purchase plan: Expected stock price volatility 51.9 % 31.6 % 51.9 % 31.6 % Risk-free interest rate 0.7 % 2.4 % 0.7 % 2.4 % Dividend yield 1.9 % 2.5 % 1.9 % 2.5 % Expected life (in years) 0.5 0.5 0.5 0.5 |
Schedule of Tax Benefits Realized and Weighted-average fair value for the ESPP | The following table shows total cash received from employees for the issuance of shares under the ESPP, the number of shares purchased by employees through the ESPP, the tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods: Three Months Ended Six Months Ended (In thousands, except for weighted-average fair value per share) December 31, December 31, 2020 2019 2020 2019 Total cash received from employees for the issuance of shares under the ESPP $ 26,356 $ 24,492 $ 26,356 $ 24,492 Number of shares purchased by employees through the ESPP 161 237 161 237 Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP $ (3,005) $ 119 $ 1,164 $ 1,853 Weighted-average fair value per share based on Black-Scholes model $ 52.23 $ 27.35 $ 52.23 $ 27.35 |
STOCK REPURCHASE PROGRAM (Table
STOCK REPURCHASE PROGRAM (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Number of shares of common stock repurchased 774 1,690 1,801 3,349 Total cost of repurchases $ 177,492 $ 280,593 $ 371,389 $ 509,089 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income per share attributable to KLA: Three Months Ended Six Months Ended (In thousands, except per share amounts) December 31, December 31, 2020 2019 2020 2019 Numerator: Net income attributable to KLA $ 457,251 $ 380,555 $ 877,818 $ 727,080 Denominator: Weighted-average shares - basic, excluding unvested restricted stock units 154,273 157,290 154,777 157,994 Effect of dilutive restricted stock units and options 1,287 1,330 1,280 1,320 Weighted-average shares - diluted 155,560 158,620 156,057 159,314 Basic net income per share attributable to KLA $ 2.96 $ 2.42 $ 5.67 $ 4.60 Diluted net income per share attributable to KLA $ 2.94 $ 2.40 $ 5.62 $ 4.56 Anti-dilutive securities excluded from the computation of diluted net income per share — 43 — 25 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Details of Income Taxes | The following table provides details of income taxes: Three Months Ended Six Months Ended December 31, December 31, (Dollar amounts in thousands) 2020 2019 2020 2019 Income before income taxes $ 527,402 $ 424,927 $ 1,011,208 $ 796,443 Provision for income taxes $ 70,419 $ 44,622 $ 134,083 $ 69,742 Effective tax rate 13.4 % 10.5 % 13.3 % 8.8 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 LCs for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Receivables sold under factoring agreements $ 49,917 $ 116,935 $ 138,562 $ 173,355 Proceeds from sales of LCs $ 21,709 $ 10,677 $ 40,839 $ 20,606 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 hedging relationships recognized in OCI for the indicated periods were as follows: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Derivatives Designated as Hedging Instruments: Foreign exchange contracts: Amounts included in the assessment of effectiveness $ (1,310) $ 2,305 $ (2,182) 1,565 Amounts excluded from the assessment of effectiveness $ (47) $ (15) $ (93) $ (17) The locations and amounts of designated and non-designated derivative’s gains and losses reported in the Condensed Consolidated Statements of Operations for the indicated periods were as follows: Three Months Ended December 31, Three Months Ended December 31, 2020 2019 (In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost 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 $ 1,650,870 $ 1,080,706 $ 38,880 $ 3,882 $ 1,509,453 $ 1,046,622 $ 40,472 $ (2,568) Gains (losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from accumulated OCI to earnings $ — $ — $ (279) $ — $ — $ — $ (100) $ — Foreign exchange contracts: Amount of gains (losses) reclassified from accumulated OCI to earnings $ (560) $ (125) $ — $ — $ 85 $ (17) $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach $ (151) $ — $ — $ — $ (93) $ — $ — $ — Gains (losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ 2,661 $ — $ — $ — $ 2,056 Six Months Ended December 31, Six Months Ended December 31, 2020 2019 (In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Total amounts presented in the Condensed Consolidated Statement of Operations in which the effects of cash flow hedges are recorded $ 3,189,490 $ 2,092,937 $ 78,266 $ 7,079 $ 2,922,867 $ 2,049,788 $ 80,822 $ (4,186) Gains (losses) on Derivatives Designated as Hedging Instruments: Rate lock agreements: Amount of gains (losses) reclassified from accumulated OCI to earnings $ — $ — $ (558) $ — $ — $ — $ (199) $ — Foreign exchange contracts: Amount of gains (losses) reclassified from accumulated OCI to earnings $ (650) $ 425 $ — $ — $ 560 $ (1,818) $ — $ — Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach $ (278) $ — $ — $ — $ (195) $ — $ — $ — Gains (losses) on Derivatives Not Designated as Hedging Instruments: Amount of gains (losses) recognized in earnings $ — $ — $ — $ (2,937) $ — $ — $ — $ 4,381 |
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 thirteen months as of the dates indicated below were as follows: As of As of (In thousands) December 31, 2020 June 30, 2020 Cash flow hedge contracts - foreign currency Purchase $ 8,344 $ 10,705 Sell $ 95,706 $ 71,431 Other foreign currency hedge contracts Purchase $ 311,397 $ 329,310 Sell $ 321,076 $ 357,939 |
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 December 31, 2020 June 30, 2020 Location December 31, 2020 June 30, 2020 (In thousands) Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts Other current assets $ 311 $ 680 Other current liabilities $ 981 $ 45 Total derivatives designated as hedging instruments 311 680 981 45 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets 2,349 1,397 Other current liabilities 2,860 1,365 Total derivatives not designated as hedging instruments 2,349 1,397 2,860 1,365 Total derivatives $ 2,660 $ 2,077 $ 3,841 $ 1,410 |
Schedule of Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments | The changes in OCI, before taxes, related to derivatives for the indicated periods were as follows: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Beginning balance $ (30,574) $ (10,006) $ (29,602) $ (10,791) Amount reclassified to earnings 1,115 125 1,061 1,652 Net change in unrealized gains or losses (1,357) 2,290 (2,275) 1,548 Ending balance $ (30,816) $ (7,591) $ (30,816) $ (7,591) |
Schedule of Offsetting of Assets and Liabilities | The information related to the offsetting arrangements for the periods indicated was as follows (in thousands): As of December 31, 2020 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 2,660 $ — $ 2,660 $ (1,527) $ — $ 1,133 Derivatives - Liabilities $ (3,841) $ — $ (3,841) $ 1,527 $ — $ (2,314) As of June 30, 2020 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets Description Gross Amounts of Derivatives Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Derivatives - Assets $ 2,077 $ — $ 2,077 $ (1,020) $ — $ 1,057 Derivatives - Liabilities $ (1,410) $ — $ (1,410) $ 1,020 $ — $ (390) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Total revenues $ 324 $ 2,794 $ 638 $ 3,835 Total purchases $ 279 $ 249 $ 571 $ 714 |
SEGMENT REPORTING AND GEOGRAP_2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Results for Reportable Segments | The following is a summary of results for each of our four reportable segments for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Semiconductor Process Control: Revenues $ 1,380,184 $ 1,247,430 $ 2,648,138 $ 2,411,062 Segment gross margin 884,090 795,730 1,698,900 1,538,072 Specialty Semiconductor Process: Revenues 90,587 75,106 179,540 144,245 Segment gross margin 51,171 41,333 101,099 79,497 PCB, Display and Component Inspection: Revenues 179,267 186,279 360,444 364,831 Segment gross margin 84,584 82,538 174,753 158,606 Other: Revenues 449 517 590 2,748 Segment gross margin (121) 117 (108) 770 Totals: Revenues for reportable segments $ 1,650,487 $ 1,509,332 $ 3,188,712 $ 2,922,886 Segment gross margin $ 1,019,724 $ 919,718 $ 1,974,644 $ 1,776,945 |
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 Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Total revenues for reportable segments $ 1,650,487 $ 1,509,332 $ 3,188,712 $ 2,922,886 Corporate allocations and effects of foreign exchange rates 383 121 778 (19) Total revenues $ 1,650,870 $ 1,509,453 $ 3,189,490 $ 2,922,867 |
Schedule of Reconciliation of Total Segment Gross Margin to Total Income Before Income Taxes | The following table reconciles total segment gross margin to total income before income taxes for the indicated periods: Three Months Ended Six Months Ended December 31, December 31, (In thousands) 2020 2019 2020 2019 Total segment gross margin $ 1,019,724 $ 919,718 $ 1,974,644 $ 1,776,945 Acquisition-related charges, corporate allocations, and effects of foreign exchange rates (1) 38,587 43,883 75,449 91,937 Research and development 229,064 220,751 448,102 431,331 Selling, general and administrative 181,909 192,253 354,540 380,598 Interest expense 38,880 40,472 78,266 80,822 Other expense (income), net 3,882 (2,568) 7,079 (4,186) Income before income taxes $ 527,402 $ 424,927 $ 1,011,208 $ 796,443 __________________ |
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 December 31, Six Months Ended December 31, 2020 2019 2020 2019 Revenues: China $ 382,157 23 % $ 381,752 25 % $ 868,246 27 % $ 727,608 25 % Taiwan 380,785 23 % 447,083 30 % 749,886 24 % 833,812 28 % Korea 347,947 21 % 181,948 12 % 537,465 17 % 379,398 13 % North America 214,808 13 % 158,517 11 % 384,984 12 % 340,500 12 % Japan 156,721 10 % 194,804 13 % 321,140 10 % 401,015 14 % Europe and Israel 100,201 6 % 97,466 6 % 183,318 6 % 156,849 5 % Rest of Asia 68,251 4 % 47,883 3 % 144,451 4 % 83,685 3 % Total $ 1,650,870 100 % $ 1,509,453 100 % $ 3,189,490 100 % $ 2,922,867 100 % |
Schedule of Revenues by Major Products | The following is a summary of revenues by major products for the indicated periods: (Dollar amounts in thousands) Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Revenues: Wafer Inspection $ 687,030 42 % $ 606,131 40 % $ 1,206,581 38 % $ 1,054,405 36 % Patterning 307,512 19 % 289,078 19 % 678,444 21 % 671,736 23 % Specialty Semiconductor Process 71,978 4 % 60,941 4 % 146,005 5 % 117,811 4 % PCB, Display and Component Inspection 115,825 7 % 129,235 9 % 236,451 7 % 249,595 9 % Services 412,847 25 % 364,903 24 % 805,972 25 % 720,342 24 % Other 55,678 3 % 59,165 4 % 116,037 4 % 108,978 4 % Total $ 1,650,870 100 % $ 1,509,453 100 % $ 3,189,490 100 % $ 2,922,867 100 % |
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) December 31, 2020 June 30, 2020 Land, property and equipment, net: United States $ 391,080 $ 329,558 Israel 57,562 59,162 Singapore 68,027 54,946 Europe 55,979 58,065 Rest of Asia 21,537 18,093 Total $ 594,185 $ 519,824 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Jul. 01, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Credit losses on available-for-sale debt securities recognized during the period | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Net decrease of retained earnings | (2,950,306,000) | (2,687,970,000) | (2,950,306,000) | (2,687,970,000) | $ (2,762,345,000) | $ (2,681,010,000) | $ (2,679,619,000) | $ (2,677,693,000) | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Net decrease of retained earnings | 5,530,000 | ||||||||
Retained Earnings | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Net decrease of retained earnings | $ (903,696,000) | $ (719,001,000) | $ (903,696,000) | $ (719,001,000) | $ (753,915,000) | (654,930,000) | $ (733,173,000) | $ (714,825,000) | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Net decrease of retained earnings | $ 5,500,000 | $ 5,530,000 |
REVENUE - Schedule of Contract
REVENUE - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Accounts receivable, net | ||
Accounts receivable, net | $ 1,219,189 | $ 1,107,413 |
Change in accounts receivable, net | $ 111,776 | |
Percentage change in accounts receivable, net | 10.00% | |
Contract assets | ||
Contract assets | $ 94,375 | 99,876 |
Change in contract assets | $ (5,501) | |
Percentage change in contract assets | (6.00%) | |
Contract liabilities | ||
Contract liabilities | $ 603,029 | $ 666,055 |
Change in contract liabilities | $ (63,026) | |
Percentage change in contract liabilities | (9.00%) |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020USD ($) | |
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 | $ 54.5 | |
Revenue recognized in excess of amount billed to customer | 48.7 | |
Revenue recognized, included in contract liabilities at beginning of period | $ 439.9 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue payment terms required payment percentage of total contract consideration within 30 To 60 days of shipment | 70.00% | 70.00% |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue payment terms required payment percentage of total contract consideration within 30 To 60 days of shipment | 90.00% | 90.00% |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 2,570 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 5.00% |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 15.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Other current assets: | ||
Derivative assets | $ 2,660,000 | $ 2,077,000 |
Liabilities | ||
Derivative liabilities | (3,841,000) | (1,410,000) |
Contingent consideration payable | 0 | |
Cash excluded from fair value measurement | 542,700,000 | 460,800,000 |
Time deposits excluded from fair value measurement | 160,300,000 | 78,700,000 |
Recurring | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 1,593,556,000 | 1,395,563,000 |
Other current assets: | ||
Derivative assets | 2,660,000 | 2,077,000 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 245,673,000 | 213,487,000 |
Total financial assets | 1,841,889,000 | 1,611,127,000 |
Liabilities | ||
Derivative liabilities | (3,841,000) | (1,410,000) |
Deferred payments | (4,400,000) | (6,750,000) |
Contingent consideration payable | (7,214,000) | (15,513,000) |
Total financial liabilities | (15,455,000) | (23,673,000) |
Recurring | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 795,712,000 | 694,950,000 |
Recurring | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 15,400,000 | |
Marketable securities: | ||
Marketable securities | 175,589,000 | 181,193,000 |
Recurring | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 418,348,000 | 381,957,000 |
Recurring | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 39,352,000 | 29,110,000 |
Recurring | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 3,059,000 | 2,017,000 |
Recurring | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | 146,096,000 | 106,336,000 |
Recurring | Level 1 | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 1,096,407,000 | 952,496,000 |
Other current assets: | ||
Derivative assets | 0 | 0 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 188,203,000 | 166,000,000 |
Total financial assets | 1,284,610,000 | 1,118,496,000 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Deferred payments | 0 | 0 |
Contingent consideration payable | 0 | 0 |
Total financial liabilities | 0 | 0 |
Recurring | Level 1 | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 795,712,000 | 694,950,000 |
Recurring | Level 1 | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 0 | |
Marketable securities: | ||
Marketable securities | 154,599,000 | 151,210,000 |
Recurring | Level 1 | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | 146,096,000 | 106,336,000 |
Recurring | Level 2 | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 497,149,000 | 443,067,000 |
Other current assets: | ||
Derivative assets | 2,660,000 | 2,077,000 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 57,470,000 | 47,487,000 |
Total financial assets | 557,279,000 | 492,631,000 |
Liabilities | ||
Derivative liabilities | (3,841,000) | (1,410,000) |
Deferred payments | 0 | 0 |
Contingent consideration payable | 0 | 0 |
Total financial liabilities | (3,841,000) | (1,410,000) |
Recurring | Level 2 | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Recurring | Level 2 | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 15,400,000 | |
Marketable securities: | ||
Marketable securities | 20,990,000 | 29,983,000 |
Recurring | Level 2 | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 418,348,000 | 381,957,000 |
Recurring | Level 2 | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 39,352,000 | 29,110,000 |
Recurring | Level 2 | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 3,059,000 | 2,017,000 |
Recurring | Level 2 | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | ||
Marketable securities: | ||
Total cash equivalents and marketable securities | 0 | 0 |
Other current assets: | ||
Derivative assets | 0 | 0 |
Other non-current assets: | ||
Executive Deferred Savings Plan | 0 | 0 |
Total financial assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Deferred payments | (4,400,000) | (6,750,000) |
Contingent consideration payable | (7,214,000) | (15,513,000) |
Total financial liabilities | (11,614,000) | (22,263,000) |
Recurring | Level 3 | Money market funds and other | ||
Cash equivalents: | ||
Cash equivalents | 0 | 0 |
Recurring | Level 3 | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents | 0 | |
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | Corporate debt securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | Municipal securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | Sovereign securities | ||
Marketable securities: | ||
Marketable securities | 0 | 0 |
Recurring | Level 3 | U.S. Government agency securities | ||
Marketable securities: | ||
Marketable securities | $ 0 | $ 0 |
FINANCIAL STATEMENT COMPONENT_2
FINANCIAL STATEMENT COMPONENTS - Balance Sheet Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Accounts receivable, net: | |||||
Accounts receivable, gross | $ 1,236,877 | $ 1,236,877 | $ 1,119,235 | ||
Allowance for credit losses | (17,688) | (17,688) | (11,822) | ||
Accounts receivable, net | 1,219,189 | 1,219,189 | 1,107,413 | ||
Inventories: | |||||
Raw materials | 525,002 | 525,002 | 478,594 | ||
Customer service parts | 355,908 | 355,908 | 338,608 | ||
Work-in-process | 374,462 | 374,462 | 334,965 | ||
Finished goods | 165,246 | 165,246 | 158,818 | ||
Inventories | 1,420,618 | 1,420,618 | 1,310,985 | ||
Other current assets: | |||||
Contract assets | 94,375 | 94,375 | 99,876 | ||
Prepaid expenses | 71,330 | 71,330 | 74,955 | ||
Deferred costs of revenue | 58,793 | 58,793 | 77,219 | ||
Prepaid income and other taxes | 37,744 | 37,744 | 56,809 | ||
Other current assets | 24,375 | 24,375 | 15,816 | ||
Other current assets, total | 286,617 | 286,617 | 324,675 | ||
Land, property and equipment, net: | |||||
Land | 67,867 | 67,867 | 67,858 | ||
Buildings and leasehold improvements | 436,180 | 436,180 | 405,238 | ||
Machinery and equipment | 722,084 | 722,084 | 677,627 | ||
Office furniture and fixtures | 32,429 | 32,429 | 29,964 | ||
Construction-in-process | 126,656 | 126,656 | 93,736 | ||
Land, property and equipment, gross | 1,385,216 | 1,385,216 | 1,274,423 | ||
Less: accumulated depreciation | (791,031) | (791,031) | (754,599) | ||
Land, property and equipment, net | 594,185 | 594,185 | 519,824 | ||
Other non-current assets: | |||||
Executive Deferred Savings Plan | 245,673 | 245,673 | 213,487 | ||
Operating lease right of use assets | 103,430 | 103,430 | 100,790 | ||
Other non-current assets | 54,380 | 54,380 | 48,702 | ||
Other non-current assets, total | 403,483 | 403,483 | 362,979 | ||
Other current liabilities: | |||||
Compensation and benefits | 385,007 | 385,007 | 251,379 | ||
Executive Deferred Savings Plan | 245,976 | 245,976 | 215,167 | ||
Customer credits and advances | 251,970 | 251,970 | 114,896 | ||
Other accrued expenses | 156,916 | 156,916 | 183,435 | ||
Income taxes payable | 116,091 | 116,091 | 35,640 | ||
Interest payable | 36,176 | 36,176 | 36,265 | ||
Operating lease liabilities | 31,220 | 31,220 | 28,994 | ||
Other current liabilities, total | 1,223,356 | 1,223,356 | 865,776 | ||
Other non-current liabilities: | |||||
Income taxes payable | 362,164 | 362,164 | 383,447 | ||
Pension liabilities | 83,618 | 83,618 | 78,911 | ||
Operating lease liabilities | 74,443 | 74,443 | 70,885 | ||
Other non-current liabilities | 147,739 | 147,739 | 139,041 | ||
Other non-current liabilities, total | 667,964 | 667,964 | $ 672,284 | ||
Selling, general and administrative | |||||
Other non-current liabilities: | |||||
Expense associated with changes in the EDSP Liability | 22,100 | $ 12,000 | 35,300 | $ 13,900 | |
Gain on deferred compensation plan assets | $ 22,200 | $ 11,900 | $ 35,500 | $ 14,200 |
FINANCIAL STATEMENT COMPONENT_3
FINANCIAL STATEMENT COMPONENTS - Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | $ 2,665,424 |
Ending balance | 2,935,182 |
Currency Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | (43,957) |
Ending balance | (30,806) |
Unrealized Gains (Losses) on Available-for-Sale Securities | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | 3,683 |
Ending balance | 2,054 |
Unrealized Gains (Losses) on Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | (23,250) |
Ending balance | (24,204) |
Unrealized Gains (Losses) on Defined Benefit Plans | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | (16,250) |
Ending balance | (19,748) |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning balance | (79,774) |
Ending balance | $ (72,704) |
FINANCIAL STATEMENT COMPONENT_4
FINANCIAL STATEMENT COMPONENTS - Effects on Net Income (Loss) of Amounts Reclassified from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | ||||||
Revenues | $ 1,650,870 | $ 1,509,453 | $ 3,189,490 | $ 2,922,867 | ||
Costs of revenues and operating expenses | (1,080,706) | (1,046,622) | (2,092,937) | (2,049,788) | ||
Interest expense | (38,880) | (40,472) | (78,266) | (80,822) | ||
Net gains (losses) reclassified from accumulated OCI | 457,251 | $ 420,567 | 380,555 | $ 346,525 | 877,818 | 727,080 |
Other expense (income), net | 3,882 | (2,568) | 7,079 | (4,186) | ||
Unrealized Gains (Losses) on Defined Benefit Plans | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification adjustment from AOCI, net of tax | 300 | 200 | 500 | 500 | ||
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 | (711) | (8) | (928) | 365 | ||
Costs of revenues and operating expenses | (125) | (17) | 425 | (1,818) | ||
Interest expense | (279) | (100) | (558) | (199) | ||
Net gains (losses) reclassified from accumulated OCI | (1,115) | (125) | (1,061) | (1,652) | ||
Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) on available-for-sale securities | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Other expense (income), net | $ (111) | $ (82) | $ (212) | $ (86) |
MARKETABLE SECURITIES - Amortiz
MARKETABLE SECURITIES - Amortized Cost and Fair Value (Details) | Dec. 31, 2020USD ($)investment | Jun. 30, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,590,940,000 | $ 1,390,874,000 |
Gross Unrealized Gains | 2,646,000 | 4,748,000 |
Gross Unrealized Losses | (30,000) | (59,000) |
Fair Value | 1,593,556,000 | 1,395,563,000 |
Add: Time deposits | 160,301,000 | 124,153,000 |
Marketable securities, Amortized Cost | 862,449,000 | 741,374,000 |
Marketable securities, Gross Unrealized Gains | 2,645,000 | 4,748,000 |
Marketable securities, Gross Unrealized Losses | (30,000) | (59,000) |
Marketable securities, Fair value | $ 865,064,000 | 746,063,000 |
Number of investments in an unrealized loss position | investment | 39 | |
Investments in continuous loss position, 12 months or more | $ 0 | |
Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 888,792,000 | 773,653,000 |
Gross Unrealized Gains | 1,000 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 888,793,000 | 773,653,000 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 416,926,000 | 379,334,000 |
Gross Unrealized Gains | 1,445,000 | 2,673,000 |
Gross Unrealized Losses | (23,000) | |
Fair Value | 418,348,000 | 381,957,000 |
Money market funds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 795,712,000 | 694,950,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 795,712,000 | 694,950,000 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 39,190,000 | 28,859,000 |
Gross Unrealized Gains | 165,000 | 251,000 |
Gross Unrealized Losses | (3,000) | |
Fair Value | 39,352,000 | 29,110,000 |
Sovereign securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,056,000 | 2,009,000 |
Gross Unrealized Gains | 3,000 | 8,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 3,059,000 | 2,017,000 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 145,774,000 | 106,091,000 |
Gross Unrealized Gains | 325,000 | 252,000 |
Gross Unrealized Losses | (3,000) | |
Fair Value | 146,096,000 | 106,336,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 190,282,000 | 179,631,000 |
Gross Unrealized Gains | 708,000 | 1,564,000 |
Gross Unrealized Losses | (1,000) | |
Fair Value | $ 190,989,000 | $ 181,193,000 |
Corporate and Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment portfolio, maximum maturity term | 3 years |
MARKETABLE SECURITIES - Continu
MARKETABLE SECURITIES - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 89,708 | $ 74,260 |
Gross Unrealized Losses | (30) | (59) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 47,474 | 44,429 |
Gross Unrealized Losses | (23) | (50) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 6,478 | 870 |
Gross Unrealized Losses | (3) | 0 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 6,504 | 9,951 |
Gross Unrealized Losses | (3) | (7) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 29,252 | 19,010 |
Gross Unrealized Losses | $ (1) | $ (2) |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Amortized Cost | ||
Due within one year | $ 468,753 | $ 415,915 |
Due after one year through three years | 393,696 | 325,459 |
Marketable securities, Amortized Cost | 862,449 | 741,374 |
Fair Value | ||
Due within one year | 470,247 | 418,169 |
Due after one year through three years | 394,817 | 327,894 |
Marketable securities, Fair Value | $ 865,064 | $ 746,063 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) | Apr. 24, 2020 | Aug. 22, 2019 | Dec. 31, 2020 |
Business Acquisition | |||
Estimated additional consideration | $ 0 | ||
April 2020 acquisition | |||
Business Acquisition | |||
Total purchase consideration | $ 11,400,000 | ||
Acquired goodwill | $ 2,200,000 | ||
August 2019 acquisition | |||
Business Acquisition | |||
Total purchase consideration | $ 94,000,000 | ||
Additional consideration (up to) | $ 60,000,000 | ||
August 2019 acquisition | Wafer Inspection and Patterning | |||
Business Acquisition | |||
Acquired goodwill | 54,200,000 | ||
Other Acquisitions | |||
Business Acquisition | |||
Contingent consideration liability, non-current | $ 7,200,000 |
GOODWILL AND PURCHASED INTANG_3
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Schedule of Goodwill (Details) | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill | |
Beginning balance | $ 2,045,402,000 |
Foreign currency adjustments | 43,000 |
Ending balance | 2,045,445,000 |
Wafer Inspection and Patterning | |
Goodwill | |
Beginning balance | 416,840,000 |
Foreign currency adjustments | 43,000 |
Ending balance | 416,883,000 |
Global Service and Support (“GSS”) | |
Goodwill | |
Beginning balance | 25,908,000 |
Foreign currency adjustments | 0 |
Ending balance | 25,908,000 |
Specialty Semiconductor Process | |
Goodwill | |
Beginning balance | 681,858,000 |
Foreign currency adjustments | 0 |
Ending balance | 681,858,000 |
PCB and Display | |
Goodwill | |
Beginning balance | 907,221,000 |
Foreign currency adjustments | 0 |
Ending balance | 907,221,000 |
Component Inspection | |
Goodwill | |
Beginning balance | 13,575,000 |
Foreign currency adjustments | 0 |
Ending balance | 13,575,000 |
Others | |
Goodwill | |
Beginning balance | 0 |
Ending balance | $ 0 |
GOODWILL AND PURCHASED INTANG_4
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Jun. 30, 2020USD ($) | Dec. 31, 2020segmentreporting_unit | Mar. 31, 2020USD ($) | |
Goodwill [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Number of reporting units | reporting_unit | 6 | ||
Impairment of intangible assets | $ 0 | ||
Specialty Semiconductor Process | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 144,200,000 | ||
PCB and Display | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 112,500,000 |
GOODWILL AND PURCHASED INTANG_5
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Purchased Intangible Assets | ||
Gross Carrying Amount | $ 1,847,062 | $ 1,743,487 |
Accumulated Amortization and Impairment | 629,378 | 527,808 |
Total | 1,217,684 | 1,215,679 |
Intangible assets, gross | 1,919,321 | 1,919,321 |
Finite-lived intangible assets, accumulated amortization and other accumulated adjustments | 629,478 | 527,908 |
Net Amount | 1,289,843 | 1,391,413 |
In-process research and development | ||
Purchased Intangible Assets | ||
Indefinite-lived intangible assets | 72,259 | 175,834 |
Finite-lived intangible assets, accumulated amortization and other accumulated adjustments | 100 | 100 |
Indefinite-lived intangible assets, net of other accumulated adjustments | 72,159 | 175,734 |
Existing technology | ||
Purchased Intangible Assets | ||
Gross Carrying Amount | 1,373,458 | 1,269,883 |
Accumulated Amortization and Impairment | 418,402 | 342,623 |
Total | 955,056 | 927,260 |
Customer relationships | ||
Purchased Intangible Assets | ||
Gross Carrying Amount | 305,817 | 305,817 |
Accumulated Amortization and Impairment | 115,070 | 98,754 |
Total | 190,747 | 207,063 |
Trade name / Trademark | ||
Purchased Intangible Assets | ||
Gross Carrying Amount | 117,383 | 117,383 |
Accumulated Amortization and Impairment | 46,355 | 39,216 |
Total | 71,028 | 78,167 |
Backlog and other | ||
Purchased Intangible Assets | ||
Gross Carrying Amount | 50,404 | 50,404 |
Accumulated Amortization and Impairment | 49,551 | 47,215 |
Total | $ 853 | $ 3,189 |
Minimum | Existing technology | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 4 years | |
Minimum | Customer relationships | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 4 years | |
Minimum | Trade name / Trademark | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 4 years | |
Minimum | Backlog and other | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 1 year | |
Maximum | Existing technology | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 8 years | |
Maximum | Customer relationships | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 9 years | |
Maximum | Trade name / Trademark | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 7 years | |
Maximum | Backlog and other | ||
Purchased Intangible Assets | ||
Range of Useful Lives (in years) | 9 years |
GOODWILL AND PURCHASED INTANG_6
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Amortization Expense for Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Purchased Intangible Assets | ||||
Amortization of intangible assets | $ 51,070 | $ 56,752 | $ 101,570 | $ 114,660 |
Costs of revenues | ||||
Purchased Intangible Assets | ||||
Amortization of intangible assets | 38,738 | 36,364 | 75,778 | 71,985 |
Selling, general and administrative | ||||
Purchased Intangible Assets | ||||
Amortization of intangible assets | 12,301 | 20,257 | 25,730 | 42,513 |
Research and development | ||||
Purchased Intangible Assets | ||||
Amortization of intangible assets | $ 31 | $ 131 | $ 62 | $ 162 |
GOODWILL AND PURCHASED INTANG_7
GOODWILL AND PURCHASED INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Remaing Estimated Amortization Expense | ||
2021 (remaining six months) | $ 104,418 | |
2022 | 208,186 | |
2023 | 207,094 | |
2024 | 204,577 | |
2025 | 192,368 | |
2026 and thereafter | 301,041 | |
Total | $ 1,217,684 | $ 1,215,679 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Instrument | ||
Debt outstanding | $ 3,490,000,000 | $ 3,500,000,000 |
Unamortized discount/premium, net | (7,421,000) | (8,167,000) |
Unamortized debt issuance costs | (21,114,000) | (22,163,000) |
Total, net of discount | 3,461,465,000 | 3,469,670,000 |
Short-term debt | 20,000,000 | 0 |
Long-term debt | 3,441,465,000 | 3,469,670,000 |
Revolving credit facility | Line of credit | ||
Debt Instrument | ||
Debt outstanding | $ 0 | $ 50,000,000 |
Effective interest rate | 0.00% | 1.31% |
Fixed-rate 4.650% Senior Notes due on November 1, 2024 | Senior notes | ||
Debt Instrument | ||
Stated interest rate | 4.65% | |
Debt outstanding | $ 1,250,000,000 | $ 1,250,000,000 |
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 | $ 250,000,000 | $ 250,000,000 |
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 | $ 800,000,000 | $ 800,000,000 |
Effective interest rate | 4.159% | 4.159% |
Fixed-rate 5.000% Senior Notes due on March 15, 2049 | Senior notes | ||
Debt Instrument | ||
Stated interest rate | 5.00% | |
Debt outstanding | $ 400,000,000 | $ 400,000,000 |
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 | $ 750,000,000 | $ 750,000,000 |
Effective interest rate | 3.302% | 3.302% |
Fixed-rate 3.47% Note Payable due on February 20, 2021 | Notes Payable | ||
Debt Instrument | ||
Stated interest rate | 3.47% | |
Debt outstanding | $ 20,000,000 | $ 0 |
Effective interest rate | 2.05% | 0.00% |
Fixed-rate 3.59% Note Payable due on February 20, 2022 | Notes Payable | ||
Debt Instrument | ||
Stated interest rate | 3.59% | |
Debt outstanding | $ 20,000,000 | $ 0 |
Effective interest rate | 2.30% | 0.00% |
DEBT - Future Principal Payment
DEBT - Future Principal Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Due in the third quarter of fiscal 2021 | $ 20 |
Due in 2022 | 20 |
Due in 2025 | 1,250 |
Due after fiscal year 2026 | $ 2,200 |
DEBT - Senior Notes and Debt Re
DEBT - Senior Notes and Debt Redemption (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Feb. 29, 2020 | Mar. 31, 2019 | Nov. 30, 2014 | |
Debt Instrument | |||||||||
Repayment of debt | $ 50,000,000 | $ 275,000,000 | |||||||
Debt outstanding | $ 3,490,000,000 | $ 3,500,000,000 | |||||||
Senior notes | |||||||||
Debt Instrument | |||||||||
Redemption price | 101.00% | ||||||||
Fair value disclosure | $ 4,140,000,000 | $ 4,010,000,000 | |||||||
Senior notes | 2020 Senior Notes | |||||||||
Debt Instrument | |||||||||
Debt face amount | $ 750,000,000 | ||||||||
Senior notes | 2019 Senior Notes | |||||||||
Debt Instrument | |||||||||
Debt face amount | $ 1,200,000,000 | ||||||||
Senior notes | 2014 Senior Notes | |||||||||
Debt Instrument | |||||||||
Debt face amount | $ 2,500,000,000 | ||||||||
Repayment of debt | $ 500,000,000 | $ 250,000,000 | $ 250,000,000 | ||||||
Debt outstanding | $ 1,500,000,000 |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2017quarter | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | |
Debt Instrument | ||||||
Proceeds from revolving credit facility | $ 0 | $ 250,000,000 | ||||
Repayment of debt | 50,000,000 | $ 275,000,000 | ||||
Debt outstanding | 3,490,000,000 | $ 3,500,000,000 | ||||
Line of credit | Revolving credit facility | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | 1,000,000,000 | |||||
Proceeds from revolving credit facility | 450,000,000 | |||||
Repayment of debt | $ 200,000,000 | 400,000,000 | ||||
Debt outstanding | $ 0 | $ 50,000,000 | ||||
Repayments of lines of credit | $ 50,000,000 | |||||
Commitment fee percentage (in bps) | 0.125% | |||||
Covenant compliance, number of consecutive quarters | quarter | 4 | |||||
Covenant compliance, minimum interest expense coverage ratio | 3.50 | |||||
Maximum leverage ratio | 3 | 3.50 | ||||
Maximum leverage ratio under a material acquisition or series of material acquisitions | 4 | |||||
Line of credit | Revolving credit facility | Minimum | ||||||
Debt Instrument | ||||||
Commitment fee percentage (in bps) | 0.10% | |||||
Line of credit | Revolving credit facility | Maximum | ||||||
Debt Instrument | ||||||
Commitment fee percentage (in bps) | 0.25% | |||||
Line of credit | Revolving credit facility | Alternative base rate | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (in bps) | 0.00% | |||||
Line of credit | Revolving credit facility | Alternative base rate | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (in bps) | 0.75% | |||||
Line of credit | Revolving credit facility | LIBOR | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (in bps) | 1.125% | |||||
Line of credit | Revolving credit facility | LIBOR | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (in bps) | 1.00% | |||||
Line of credit | Revolving credit facility | LIBOR | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (in bps) | 1.75% |
DEBT - Notes Payable (Details)
DEBT - Notes Payable (Details) - Notes Payable | Dec. 31, 2020USD ($) |
Debt Instrument | |
Debt face amount | $ 40,000,000 |
Debt instrument premium | 300,000 |
Fixed-rate 3.47% Note Payable due on February 20, 2021 | |
Debt Instrument | |
Debt face amount | 20,000,000 |
Fixed-rate 3.59% Note Payable due on February 20, 2022 | |
Debt Instrument | |
Debt face amount | $ 20,000,000 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Operating Leased Assets [Line Items] | |||||
Total lease expense | $ 10 | $ 9.1 | $ 19.6 | $ 17.6 | |
Operating leases, weighted average remaining lease term | 4 years 9 months 18 days | 4 years 9 months 18 days | 5 years 1 month 6 days | ||
Operating leases, weighted average discount rate | 1.80% | 1.80% | 1.99% | ||
Minimum | |||||
Operating Leased Assets [Line Items] | |||||
Remaining lease terms | 1 year | ||||
Maximum | |||||
Operating Leased Assets [Line Items] | |||||
Remaining lease terms | 16 years |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 19,253 | $ 17,424 |
ROU assets obtained in exchange for new operating lease liabilities | $ 20,584 | $ 10,278 |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases, After Adoption of 842 | |
2021 (remaining six months) | $ 17,727 |
2022 | 28,811 |
2023 | 19,987 |
2024 | 13,358 |
2025 | 11,242 |
2026 | 19,823 |
Total lease payments | 110,948 |
Less imputed interest | (5,285) |
Total | $ 105,663 |
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 | Dec. 31, 2020 | Jun. 30, 2020 |
2004 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of shares available for grant (in shares) | 10,283,000 | 10,760,000 |
Assumed Equity Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of shares available for grant (in shares) | 89,963 |
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 | 6 Months Ended | |
Dec. 31, 2020shares | Dec. 31, 2020shares | |
Restricted stock unit, Performance-based and Service-based | Senior Management | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Ending balance (in shares) | 200 | |
Number of shares available for grant (in shares) | 200 | 200 |
2004 Plan | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Beginning balance (in shares) | 10,760 | |
Restricted stock units granted (in shares) | (619) | |
Restricted stock units granted adjustment (in shares) | 54 | |
Restricted stock units canceled (in shares) | 88 | |
Ending balance (in shares) | 10,283 | |
Impact on share reserve multiplier | 2 | |
Number of shares available for grant (in shares) | 10,283 | 10,283 |
2004 Plan | Restricted stock unit, Performance-based and Service-based | ||
Total Shares Available for Grant under the Company's equity incentive plans: | ||
Ending balance (in shares) | 100 | |
Number of shares available for grant (in shares) | 100 | 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 | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Stock-based compensation expense | |||||
Stock-based compensation expense | $ 26,827 | $ 26,789 | $ 53,819 | $ 53,733 | |
Stock-based compensation capitalized as inventory | 5,855 | 5,855 | $ 6,752 | ||
Costs of revenues | |||||
Stock-based compensation expense | |||||
Stock-based compensation expense | 4,104 | 3,362 | 7,771 | 6,226 | |
Research and development | |||||
Stock-based compensation expense | |||||
Stock-based compensation expense | 5,225 | 5,073 | 10,696 | 10,360 | |
Selling, general and administrative | |||||
Stock-based compensation expense | |||||
Stock-based compensation expense | $ 17,498 | $ 18,354 | $ 35,352 | $ 37,147 |
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 | 6 Months Ended | |||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2020USD ($)Installment$ / sharesshares | Dec. 31, 2019$ / shares | Jun. 30, 2020shares | |
Restricted stock units | |||||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Restricted stock units granted, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 220.53 | $ 171.98 | $ 202.60 | $ 142.75 | |
Unrecognized stock-based compensation balance | $ | $ 165 | $ 165 | |||
Estimated weighted-average amortization period | 1 year 7 months 6 days | ||||
Intrinsic value | $ | $ 510.3 | $ 510.3 | |||
Restricted stock unit, Service-based | Minimum | |||||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Share-based vesting period | 2 years | ||||
Restricted stock unit, Service-based | Maximum | |||||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Share-based vesting period | 4 years | ||||
Restricted stock unit, Performance-based and Service-based | |||||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Service and performance-based, number of equal vesting installments | Installment | 2 | ||||
Restricted Stock Unit, Market-based and Service-based | |||||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Service and performance-based, number of equal vesting installments | Installment | 3 | ||||
2004 Plan | |||||
Restricted Stock Units Activity Rollforward | |||||
Granted (in shares) | 619 | ||||
Granted adjustments (in shares) | 54 | ||||
Forfeited (in shares) | (88) | ||||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Number of shares available for grant (in shares) | 10,283 | 10,283 | 10,760 | ||
2004 Plan | Restricted stock units | |||||
Restricted Stock Units Activity Rollforward | |||||
Outstanding restricted stock units, beginning (in shares) | 2,253 | ||||
Granted (in shares) | 309 | ||||
Granted adjustments (in shares) | (27) | ||||
Vested and released (in shares) | (341) | ||||
Withheld for taxes (in shares) | (172) | ||||
Forfeited (in shares) | (51) | ||||
Outstanding restricted stock units, ending (in shares) | 1,971 | 1,971 | |||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Outstanding restricted stock units as of June 30, 2020, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 107.33 | ||||
Restricted stock units granted, weighted-average grant date fair value (in dollars per share) | $ / shares | 202.60 | ||||
Restricted stock units granted adjustments, weighted-average grant date fair value (in dollars per share) | $ / shares | 88.96 | ||||
Restricted stock units vested and released, weighted-average grant date fair value (in dollars per share) | $ / shares | 98.54 | ||||
Restricted stock units withheld for taxes, weighted-average grant date fair value (in dollars per share) | $ / shares | 98.54 | ||||
Restricted stock units forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares | 117.20 | ||||
Outstanding restricted stock units as of September 30, 2020, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 124.58 | $ 124.58 | |||
2004 Plan | Restricted stock unit, Performance-based and Service-based | |||||
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value Rollforward | |||||
Number of shares available for grant (in shares) | 100 | 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 | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Weighted-average grant date fair value per unit (in dollars per share) | $ 220.53 | $ 171.98 | $ 202.60 | $ 142.75 |
Grant date fair value of vested restricted stock units | $ 23,267 | $ 26,643 | $ 50,569 | $ 56,736 |
Tax benefits realized by us in connection with vested and released restricted stock units | $ 6,694 | $ 9,661 | $ 13,431 | $ 13,654 |
EQUITY, LONG-TERM INCENTIVE C_8
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Cash-Based Long-Term Incentive Compensation (Details) - Cash long-term incentive plan $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)Installment | Dec. 31, 2019USD ($) | |
Cash Long-Term Incentive Plan | ||||
Cash-based long-term incentive plan, authorized amount | $ 4.1 | $ 4.3 | ||
Cash long-term incentive plan, compensation expense | $ 17.3 | $ 13.8 | 36.7 | $ 30.4 |
Cash long-term incentive plan, unrecognized compensation balance | $ 142.2 | $ 142.2 | ||
Minimum | ||||
Cash Long-Term Incentive Plan | ||||
Cash long-term incentive plan, equal vesting installments | Installment | 3 | |||
Cash long-term incentive plan, vesting period | 3 years | |||
Maximum | ||||
Cash Long-Term Incentive Plan | ||||
Cash long-term incentive plan, equal vesting installments | Installment | 4 | |||
Cash long-term incentive plan, vesting period | 4 years |
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, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
ESPP, offering period | 6 months | |||
Employee Stock Purchase Plan Additional Information | ||||
ESPP maximum annual share replenishment (in shares) | 2,000 | 2,000 | ||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
ESPP maximum employee subscription rate | 15.00% | 15.00% | ||
ESPP, discount from market price, lesser of commencement of offering period or purchase date | 85.00% | |||
ESPP, Fair Value Assumptions and Methodology | ||||
Expected stock price volatility | 51.90% | 31.60% | 51.90% | 31.60% |
Risk-free interest rate | 0.70% | 2.40% | 0.70% | 2.40% |
Dividend yield | 1.90% | 2.50% | 1.90% | 2.50% |
Expected life (in years) | 6 months | 6 months | 6 months | 6 months |
Employee Stock Purchase Plan Additional Information | ||||
Total cash received from employees for the issuance of shares under the ESPP | $ 26,356 | $ 24,492 | $ 26,356 | $ 24,492 |
Number of shares purchased by employees through the ESPP | 161 | 237 | 161 | 237 |
Tax benefits realized by us in connection with the disqualifying dispositions of shares purchased under the ESPP | $ (3,005) | $ 119 | $ 1,164 | $ 1,853 |
Weighted-average fair value per share based on Black-Scholes model (in dollars per share) | $ 52.23 | $ 27.35 | $ 52.23 | $ 27.35 |
Number of shares available for grant (in shares) | 2,500 | 2,500 |
EQUITY, LONG-TERM INCENTIVE _10
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 05, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 |
Dividends Payable | ||||||||
Cash dividends declared (in dollars per share) | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.85 | $ 0.75 | |||
Payment of dividends | $ 139.6 | $ 134.7 | $ 280.7 | $ 256.3 | ||||
Restricted stock unit, Performance-based and Service-based | ||||||||
Dividends Payable | ||||||||
Dividends payable | $ 9.5 | $ 9.5 | $ 8.3 |
EQUITY, LONG-TERM INCENTIVE _11
EQUITY, LONG-TERM INCENTIVE COMPENSATION PLANS AND NON-CONTROLLING INTEREST - Non-controlling Interest (Details) $ in Millions | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | PixCell | |
Noncontrolling Interest [Line Items] | |
Proceeds from sale of business | $ 21 |
Orbograph | |
Noncontrolling Interest [Line Items] | |
Non-controlling interest, ownership | 94.00% |
OLTS | |
Noncontrolling Interest [Line Items] | |
Non-controlling interest, ownership | 97.00% |
PixCell | |
Noncontrolling Interest [Line Items] | |
Non-controlling interest, ownership | 52.00% |
STOCK REPURCHASE PROGRAM (Detai
STOCK REPURCHASE PROGRAM (Details) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock | ||||||
Shares authorized to be repurchased, amount | $ 3,000,000,000 | $ 3,000,000,000 | ||||
Remaining shares authorized to be repurchased, amount | 670,000,000 | 670,000,000 | ||||
Total cost of repurchases | $ 177,492,000 | $ 193,897,000 | $ 280,593,000 | $ 228,496,000 | $ 371,389,000 | $ 509,089,000 |
Common Stock and Capital in Excess of Par Value, Shares | ||||||
Equity, Class of Treasury Stock | ||||||
Number of shares of common stock repurchased (in shares) | 774 | 1,027 | 1,690 | 1,659 | 1,801 | 3,349 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||||||
Net income attributable to KLA | $ 457,251 | $ 420,567 | $ 380,555 | $ 346,525 | $ 877,818 | $ 727,080 |
Denominator: | ||||||
Weighted-average shares - basic, excluding unvested restricted stock units (in shares) | 154,273 | 157,290 | 154,777 | 157,994 | ||
Effect of dilutive restricted stock units and options (in shares) | 1,287 | 1,330 | 1,280 | 1,320 | ||
Weighted-average shares - diluted (in shares) | 155,560 | 158,620 | 156,057 | 159,314 | ||
Basic net income per share attributable to KLA (in dollars per share) | $ 2.96 | $ 2.42 | $ 5.67 | $ 4.60 | ||
Diluted net income per share attributable to KLA (in dollars per share) | $ 2.94 | $ 2.40 | $ 5.62 | $ 4.56 | ||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares) | 0 | 43 | 0 | 25 |
INCOME TAXES - Details of Incom
INCOME TAXES - Details of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 527,402 | $ 424,927 | $ 1,011,208 | $ 796,443 |
Provision for income taxes | $ 70,419 | $ 44,622 | $ 134,083 | $ 69,742 |
Effective tax rate | 13.40% | 10.50% | 13.30% | 8.80% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) ₪ in Millions, $ in Millions | Aug. 28, 2019ILS (₪) | Aug. 28, 2019USD ($) | Dec. 31, 2020ILS (₪) | Dec. 31, 2020USD ($) | May 31, 2017ILS (₪) | May 31, 2017USD ($) |
Foreign Tax Authority | ITA | ||||||
Income Tax Examination | ||||||
Income tax examination, estimate of possible loss | ₪ 257 | $ 73 | ₪ 227 | $ 68 | ₪ 229 | $ 66 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)Installment | Dec. 31, 2019USD ($) | |
Receivables Sold Under Factoring Agreements and Proceeds from Sales of LCs | ||||
Receivables sold under factoring agreements | $ 49,917 | $ 116,935 | $ 138,562 | $ 173,355 |
Proceeds from sales of LCs | 21,709 | $ 10,677 | 40,839 | $ 20,606 |
Commitments and Contingencies | ||||
Purchase commitments | 994,900 | 994,900 | ||
Cash-based long-term incentive plan, committed amount | $ 188,700 | 188,700 | ||
Guarantee arrangements to fund customs guarantees for VAT and other operating requirements | 73,800 | |||
Outstanding guarantee arrangements to fund customs guarantees for VAT and other operating requirements | $ 62,800 | |||
Minimum | Cash long-term incentive 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 long-term incentive plan | ||||
Commitments and Contingencies | ||||
Cash long-term incentive plan, equal vesting installments | Installment | 4 | |||
Cash long-term incentive plan, percentage of equal vesting installments | 25.00% | |||
Cash long-term incentive plan, vesting period | 4 years |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2015 | Jan. 31, 2020 | |
Derivative | ||||||||
Net unrealized gains (losses) arising during the period | $ (1,357) | $ 2,290 | $ (2,275) | $ 1,548 | ||||
Reclassification adjustments increased interest expense on a net basis | (1,115) | (125) | (1,061) | (1,652) | ||||
Treasury lock | Portion of senior notes | ||||||||
Derivative | ||||||||
Reclassification adjustments increased interest expense on a net basis | 300 | $ 100 | 600 | $ 200 | ||||
Derivatives designated as hedging instruments | Senior notes | Cash flow hedge contracts | Treasury lock | ||||||||
Derivative | ||||||||
Net unrealized gains (losses) arising during the period | $ (13,600) | $ 7,500 | ||||||
Derivatives designated as hedging instruments | Senior notes | Cash flow hedge contracts | Treasury lock | 2020 Rate Lock Agreements | ||||||||
Derivative | ||||||||
Derivative, notional amount | $ 350,000 | |||||||
Net unrealized gains (losses) arising during the period | $ (21,500) | |||||||
Derivatives designated as hedging instruments | Senior notes | Cash flow hedge contracts | Treasury lock | Portion of senior notes | ||||||||
Derivative | ||||||||
Unamortized portion of the fair value of derivative contracts | $ 29,600 | $ 29,600 | ||||||
Maximum | Derivatives designated as hedging instruments | Cash flow hedge contracts | Treasury lock | ||||||||
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative | ||||
Amounts included in the assessment of effectiveness | $ (1,357) | $ 2,290 | $ (2,275) | $ 1,548 |
Foreign exchange contracts | ||||
Derivative | ||||
Amounts included in the assessment of effectiveness | (1,310) | 2,305 | (2,182) | 1,565 |
Amounts excluded from the assessment of effectiveness | $ (47) | $ (15) | $ (93) | $ (17) |
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 | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments | ||||
Revenues | $ 1,650,870 | $ 1,509,453 | $ 3,189,490 | $ 2,922,867 |
Costs of revenues and operating expenses | 1,080,706 | 1,046,622 | 2,092,937 | 2,049,788 |
Interest expense | 38,880 | 40,472 | 78,266 | 80,822 |
Other expense (income), net | 3,882 | (2,568) | 7,079 | (4,186) |
Amount of gains (losses) reclassified from accumulated OCI to earnings | (1,115) | (125) | (1,061) | (1,652) |
Rate lock contracts | Revenue | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | 0 | 0 | 0 | 0 |
Rate lock contracts | Cost of Revenues and Operating Expenses | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | 0 | 0 | 0 | 0 |
Rate lock contracts | Interest Expense | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | (279) | (100) | (558) | (199) |
Rate lock contracts | Other Expense (Income), Net | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Revenue | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | (560) | 85 | (650) | 560 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | (151) | (93) | (278) | (195) |
Amount of gains (losses) recognized in earnings | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Cost of Revenues and Operating Expenses | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | (125) | (17) | 425 | (1,818) |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 0 | 0 | 0 | 0 |
Amount of gains (losses) recognized in earnings | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Interest Expense | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | 0 | 0 | 0 | 0 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 0 | 0 | 0 | 0 |
Amount of gains (losses) recognized in earnings | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Other Expense (Income), Net | ||||
Derivative Instruments | ||||
Amount of gains (losses) reclassified from accumulated OCI to earnings | 0 | 0 | 0 | 0 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 0 | 0 | 0 | 0 |
Amount of gains (losses) recognized in earnings | $ 2,661 | $ 2,056 | $ (2,937) | $ 4,381 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Notional Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2020 | Jun. 30, 2020 | |
Derivative | |||
Remaining maturity | 13 months | 13 months | |
Derivatives designated as hedging instruments | Purchase | Other foreign currency hedge contracts | |||
Derivative | |||
Derivative, notional amount | $ 311,397 | $ 329,310 | |
Derivatives designated as hedging instruments | Purchase | Cash flow hedge contracts | |||
Derivative | |||
Derivative, notional amount | 8,344 | 10,705 | |
Derivatives designated as hedging instruments | Sell | Other foreign currency hedge contracts | |||
Derivative | |||
Derivative, notional amount | 321,076 | 357,939 | |
Derivatives designated as hedging instruments | Sell | Cash flow hedge contracts | |||
Derivative | |||
Derivative, notional amount | $ 95,706 | $ 71,431 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | $ 2,660 | $ 2,077 |
Liability derivatives fair value | 3,841 | 1,410 |
Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 2,660 | 2,077 |
Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | 3,841 | 1,410 |
Derivatives designated as hedging instruments | Other current assets | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Asset derivatives fair value | 311 | 680 |
Derivatives designated as hedging instruments | Other current liabilities | ||
Derivative Assets and Liabilities, at Fair Value, Net, by Balance Sheet Classification | ||
Liability derivatives fair value | 981 | 45 |
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 | 2,349 | 1,397 |
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 | 2,860 | 1,365 |
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 | 311 | 680 |
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 | 981 | 45 |
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 | 2,349 | 1,397 |
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 | $ 2,860 | $ 1,365 |
DERIVATIVE INSTRUMENTS AND HE_8
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ (30,574) | $ (10,006) | $ (29,602) | $ (10,791) |
Amount reclassified to earnings | 1,115 | 125 | 1,061 | 1,652 |
Net change in unrealized gains or losses | (1,357) | 2,290 | (2,275) | 1,548 |
Ending balance | $ (30,816) | $ (7,591) | $ (30,816) | $ (7,591) |
DERIVATIVE INSTRUMENTS AND HE_9
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Derivatives - Assets | ||
Derivative - Assets, Gross Amounts of Derivatives | $ 2,660 | $ 2,077 |
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 | 2,660 | 2,077 |
Derivatives - Assets, Financial Instruments | (1,527) | (1,020) |
Derivatives - Assets, Cash Collateral Received | 0 | 0 |
Derivatives - Assets, Net Amount | 1,133 | 1,057 |
Derivatives - Liabilities | ||
Derivatives - Liabilities, Gross Amounts of Derivatives | (3,841) | (1,410) |
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 | (3,841) | (1,410) |
Derivatives - Liabilities, Financial Instruments | 1,527 | 1,020 |
Derivatives - Liabilities, Cash Collateral Received | 0 | 0 |
Derivatives - Liabilities, Net Amount | $ (2,314) | $ (390) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |||||
Total revenues | $ 324 | $ 2,794 | $ 638 | $ 3,835 | |
Total purchases | 279 | $ 249 | 571 | $ 714 | |
Accounts receivables | $ 1,100 | $ 1,100 | $ 2,400 |
SEGMENT REPORTING AND GEOGRAP_3
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Additional Information (Details) - segment | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting and Geographic Information | ||||
Number of reportable segments | 4 | |||
Semiconductor Process Control | ||||
Segment Reporting and Geographic Information | ||||
Number of operating segments | 2 | |||
Specialty Semiconductor Process | ||||
Segment Reporting and Geographic Information | ||||
Number of operating segments | 1 | |||
PCB, Display and Component Inspection | ||||
Segment Reporting and Geographic Information | ||||
Number of operating segments | 2 | |||
Other | ||||
Segment Reporting and Geographic Information | ||||
Number of operating segments | 1 | |||
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Customer One | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 14.00% | 24.00% | 14.00% | 21.00% |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Customer Two | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 10.00% | 13.00% | 11.00% |
SEGMENT REPORTING AND GEOGRAP_4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Summary of Results for Reportable Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Segment Reporting and Geographic Information | ||||
Number of reportable segments | segment | 4 | |||
Revenues | $ 1,650,870 | $ 1,509,453 | $ 3,189,490 | $ 2,922,867 |
Operating segments | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 1,650,487 | 1,509,332 | 3,188,712 | 2,922,886 |
Segment gross margin | 1,019,724 | 919,718 | 1,974,644 | 1,776,945 |
Operating segments | Semiconductor Process Control | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 1,380,184 | 1,247,430 | 2,648,138 | 2,411,062 |
Segment gross margin | 884,090 | 795,730 | 1,698,900 | 1,538,072 |
Operating segments | Specialty Semiconductor Process | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 90,587 | 75,106 | 179,540 | 144,245 |
Segment gross margin | 51,171 | 41,333 | 101,099 | 79,497 |
Operating segments | PCB, Display and Component Inspection | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 179,267 | 186,279 | 360,444 | 364,831 |
Segment gross margin | 84,584 | 82,538 | 174,753 | 158,606 |
Operating segments | Other | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 449 | 517 | 590 | 2,748 |
Segment gross margin | $ (121) | $ 117 | $ (108) | $ 770 |
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 | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 1,650,870 | $ 1,509,453 | $ 3,189,490 | $ 2,922,867 |
Operating segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,650,487 | 1,509,332 | 3,188,712 | 2,922,886 |
Corporate allocations and effects of foreign exchange rates | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 383 | $ 121 | $ 778 | $ (19) |
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 | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Acquisition-related charges, corporate allocations and effects of foreign exchange rates | $ 38,587 | $ 43,883 | $ 75,449 | $ 91,937 |
Research and development | 229,064 | 220,751 | 448,102 | 431,331 |
Selling, general and administrative | 181,909 | 192,253 | 354,540 | 380,598 |
Interest expense | 38,880 | 40,472 | 78,266 | 80,822 |
Other expense (income), net | 3,882 | (2,568) | 7,079 | (4,186) |
Income before income taxes | 527,402 | 424,927 | 1,011,208 | 796,443 |
Operating segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total segment gross margin | $ 1,019,724 | $ 919,718 | $ 1,974,644 | $ 1,776,945 |
SEGMENT REPORTING AND GEOGRAP_7
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Schedule of Revenue from External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting and Geographic Information | ||||
Revenues | $ 1,650,870 | $ 1,509,453 | $ 3,189,490 | $ 2,922,867 |
China | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 382,157 | 381,752 | 868,246 | 727,608 |
Taiwan | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 380,785 | 447,083 | 749,886 | 833,812 |
Korea | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 347,947 | 181,948 | 537,465 | 379,398 |
North America | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 214,808 | 158,517 | 384,984 | 340,500 |
Japan | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 156,721 | 194,804 | 321,140 | 401,015 |
Europe and Israel | ||||
Segment Reporting and Geographic Information | ||||
Revenues | 100,201 | 97,466 | 183,318 | 156,849 |
Rest of Asia | ||||
Segment Reporting and Geographic Information | ||||
Revenues | $ 68,251 | $ 47,883 | $ 144,451 | $ 83,685 |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | China | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 23.00% | 25.00% | 27.00% | 25.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Taiwan | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 23.00% | 30.00% | 24.00% | 28.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Korea | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 21.00% | 12.00% | 17.00% | 13.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | North America | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 13.00% | 11.00% | 12.00% | 12.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Japan | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 10.00% | 13.00% | 10.00% | 14.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Europe and Israel | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 6.00% | 6.00% | 6.00% | 5.00% |
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Rest of Asia | ||||
Segment Reporting and Geographic Information | ||||
Concentration risk, percentage | 4.00% | 3.00% | 4.00% | 3.00% |
SEGMENT REPORTING AND GEOGRAP_8
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from External Customer | ||||
Revenues | $ 1,650,870 | $ 1,509,453 | $ 3,189,490 | $ 2,922,867 |
Wafer Inspection | ||||
Revenue from External Customer | ||||
Revenues | 687,030 | 606,131 | 1,206,581 | 1,054,405 |
Patterning | ||||
Revenue from External Customer | ||||
Revenues | 307,512 | 289,078 | 678,444 | 671,736 |
Specialty Semiconductor Process | ||||
Revenue from External Customer | ||||
Revenues | 71,978 | 60,941 | 146,005 | 117,811 |
PCB, Display and Component Inspection | ||||
Revenue from External Customer | ||||
Revenues | 115,825 | 129,235 | 236,451 | 249,595 |
Services | ||||
Revenue from External Customer | ||||
Revenues | 412,847 | 364,903 | 805,972 | 720,342 |
Other | ||||
Revenue from External Customer | ||||
Revenues | $ 55,678 | $ 59,165 | $ 116,037 | $ 108,978 |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | ||||
Revenue from External Customer | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Wafer Inspection | ||||
Revenue from External Customer | ||||
Concentration risk, percentage | 42.00% | 40.00% | 38.00% | 36.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Patterning | ||||
Revenue from External Customer | ||||
Concentration risk, percentage | 19.00% | 19.00% | 21.00% | 23.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Specialty Semiconductor Process | ||||
Revenue from External Customer | ||||
Concentration risk, percentage | 4.00% | 4.00% | 5.00% | 4.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | PCB, Display and Component Inspection | ||||
Revenue from External Customer | ||||
Concentration risk, percentage | 7.00% | 9.00% | 7.00% | 9.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Services | ||||
Revenue from External Customer | ||||
Concentration risk, percentage | 25.00% | 24.00% | 25.00% | 24.00% |
Product Concentration Risk | Revenue from Contract with Customer Benchmark | Other | ||||
Revenue from External Customer | ||||
Concentration risk, percentage | 3.00% | 4.00% | 4.00% | 4.00% |
SEGMENT REPORTING AND GEOGRAP_9
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION - Land, Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | $ 594,185 | $ 519,824 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 391,080 | 329,558 |
Israel | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 57,562 | 59,162 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 68,027 | 54,946 |
Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | 55,979 | 58,065 |
Rest of Asia | ||
Revenues from External Customers and Long-Lived Assets | ||
Land, property and equipment, net | $ 21,537 | $ 18,093 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 4.6 | $ 8.1 | |
Accelerated depreciation charges | 1 | 2 | |
Restructuring reserve | $ 8.7 | $ 8.7 | $ 5.7 |