KLA Corporation

Condensed Consolidated Unaudited Statements of Cash Flows

Three Months Ended Dec. 31,

(In thousands)

2023

2022

Cash flows from operating activities:

Net income

$               582,534

$               978,795

Adjustments to reconcile net income to net cash provided by operating activities:

Impairment of goodwill and purchased intangible assets

219,000

—

Depreciation and amortization

99,063

103,508

Unrealized foreign exchange (gain) loss and other

(34,346)

(20,679)

Asset impairment charges

—

749

Stock-based compensation expense

48,620

38,405

Deferred income taxes

(65,158)

(98,890)

Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:

Accounts receivable

(160,265)

(440,647)

Inventories

(21,189)

(127,647)

Other assets

(104,872)

(15,091)

Accounts payable

2,692

44,317

Deferred system revenue

218,250

95,079

Deferred service revenue

68,821

42,630

Other liabilities

(230,908)

87,761

Net cash provided by operating activities

622,242

688,290

Cash flows from investing activities:

Proceeds from sale of assets

5,079

—

Capital expenditures

(76,801)

(93,642)

Purchases of available-for-sale securities

(451,800)

(301,372)

Proceeds from sale of available-for-sale securities

7,252

10,147

Proceeds from maturity of available-for-sale securities

427,128

141,926

Purchases of trading securities

(16,049)

(18,071)

Proceeds from sale of trading securities

16,715

19,607

Net cash used in investing activities

(88,476)

(241,405)

Cash flows from financing activities:

Repayment of debt

—

(200,000)

Common stock repurchases

(437,817)

(355,007)

Payment of dividends to stockholders

(196,859)

(184,208)

Issuance of common stock

48,433

33,793

Tax withholding payments related to vested and released restricted stock units

(3,005)

(2,598)

Contingent consideration payable and other, net

(1,676)

(2,500)

Net cash used in financing activities

(590,924)

(710,520)

Effect of exchange rate changes on cash and cash equivalents

10,642

15,832

Net decrease in cash and cash equivalents

(46,516)

(247,803)

Cash and cash equivalents at beginning of period

1,711,570

1,819,280

Cash and cash equivalents at end of period

$            1,665,054

$            1,571,477

Supplemental cash flow disclosures:

Income taxes paid, net

$               506,046

$               293,403

Interest paid

$                 24,818

$                 29,635

Non-cash activities:

Contingent consideration payable - financing activities

$                      155

$                 (1,919)

Dividends payable - financing activities

$                   2,132

$                  1,999

Unsettled common stock repurchase - financing activities

$                 10,999

$                15,975

Accrued purchase of land, property and equipment - investing activities

$                 18,312

$                30,590