Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

KLA Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Federal	395,876)	553,197)	341,614)	201,413)	108,136)	82,460)
State	10,737)	14,804)	14,149)	6,164)	518)	5,665)
Foreign	160,401)	188,991)	165,194)	121,146)	86,374)	59,274)
Current	567,014)	756,992)	520,957)	328,723)	195,028)	147,399)
Federal	(110,686)	(228,414)	11,564)	(31,989)	(26,743)	1,636)
State	(2,770)	(4,295)	(311)	(1,155)	(1,174)	2,118)
Foreign	(25,422)	(122,444)	(365,033)	(12,478)	(65,425)	(29,939)
Deferred	(138,878)	(355,153)	(353,780)	(45,622)	(93,342)	(26,185)
Provision for income taxes	428,136)	401,839)	167,177)	283,101)	101,686)	121,214)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	KLA Corp. current increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	KLA Corp. deferred decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	KLA Corp. provision for income taxes increased from 2022 to 2023 and from 2023 to 2024.

KLA Corp., effective income tax rate (EITR) reconciliation

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
Global intangible low-taxed income (GILTI)	3.70%	3.40%	2.00%	2.60%	3.00%	3.50%
Goodwill impairment	1.70%	0.00%	0.00%	0.00%	4.10%	0.00%
Net change in tax reserves	1.10%	0.00%	2.00%	-1.10%	1.50%	1.40%
State income taxes, net of federal benefit	0.30%	0.20%	0.30%	0.20%	0.20%	0.50%
Restructuring	0.00%	0.00%	-11.20%	0.00%	-2.60%	0.00%
Effect of SBC	0.00%	0.10%	-0.20%	-0.30%	-0.30%	0.40%
R&D tax credit	-1.60%	-1.50%	-1.10%	-1.10%	-1.80%	-1.80%
Foreign derived intangible income	-5.90%	-5.70%	-4.00%	-4.30%	-5.00%	-4.00%
Effect of foreign operations taxed at various rates	-6.60%	-7.10%	-4.20%	-6.60%	-12.10%	-10.50%
Tax rate change on deferred tax liability on purchased intangibles	0.00%	0.00%	0.00%	1.70%	0.00%	0.00%
Other	-0.30%	0.20%	0.20%	-0.10%	-0.30%	0.40%
Effective income tax rate, before Tax Cuts and Jobs Act of 2017	13.40%	10.60%	4.80%	12.00%	7.70%	10.90%
Tax Cuts and Jobs Act of 2017 (Transition tax and deferred tax effects)	0.00%	0.00%	0.00%	0.00%	0.00%	-1.50%
Effective income tax rate	13.40%	10.60%	4.80%	12.00%	7.70%	9.40%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

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Item	Description	The company
Effective income tax rate, before Tax Cuts and Jobs Act of 2017	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	KLA Corp. effective income tax rate, before Tax Cuts and Jobs Act of 2017 increased from 2022 to 2023 and from 2023 to 2024.

KLA Corp., components of deferred tax assets and liabilities

US$ in thousands

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Capitalized R&D expenses	328,061)	201,228)	—)	—)	—)	—)
Tax credits and net operating losses	311,026)	271,500)	268,416)	237,480)	214,305)	208,572)
Depreciation and amortization	151,371)	73,691)	1,760)	—)	—)	—)
Inventory reserves	121,238)	103,646)	86,059)	81,224)	73,939)	67,249)
Employee benefits accrual	95,461)	92,696)	78,021)	82,055)	67,729)	65,065)
Non-deductible reserves	53,668)	52,147)	53,426)	36,267)	20,526)	21,633)
Unearned revenue	25,532)	16,668)	11,843)	15,712)	15,786)	16,126)
Stock-based compensation (SBC)	15,375)	12,710)	9,864)	7,284)	8,871)	9,432)
Unrealized loss on investments	—)	—)	—)	5,384)	5,345)	1,492)
Other	12,785)	35,360)	56,911)	54,615)	66,667)	55,518)
Gross deferred tax assets	1,114,517)	859,646)	566,300)	520,021)	473,168)	445,087)
Valuation allowance	(289,534)	(259,172)	(244,429)	(204,433)	(181,846)	(166,571)
Net deferred tax assets	824,983)	600,474)	321,871)	315,588)	291,322)	278,516)
Unremitted earnings of foreign subsidiaries not indefinitely reinvested	(315,231)	(279,677)	(358,374)	(278,014)	(257,757)	(243,491)
Deferred profit	(70,204)	(23,149)	(30,268)	(10,044)	(18,111)	(15,718)
Unrealized gain on investments	(10,949)	(9,994)	(12,993)	—)	—)	—)
Depreciation and amortization	—)	—)	—)	(407,692)	(439,685)	(515,643)
Deferred tax liabilities	(396,384)	(312,820)	(401,635)	(695,750)	(715,553)	(774,852)
Net deferred tax assets (liabilities)	428,599)	287,654)	(79,764)	(380,162)	(424,231)	(496,336)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	KLA Corp. gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	KLA Corp. net deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	KLA Corp. net deferred tax assets (liabilities) increased from 2022 to 2023 and from 2023 to 2024.

KLA Corp., deferred tax assets and liabilities, classification

US$ in thousands

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
	Deferred tax assets	915,241)	816,899)	579,173)	270,461)	236,797)	206,141)
	Deferred tax liabilities	486,690)	529,287)	658,937)	650,623)	660,885)	702,285)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	KLA Corp. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	KLA Corp. deferred tax liabilities decreased from 2022 to 2023 and from 2023 to 2024.

KLA Corp., adjustments to financial statements

US$ in thousands

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Adjustment to Total Assets
Total assets (as reported)	15,433,566)	14,072,357)	12,597,088)	10,271,124)	9,279,960)	9,008,516)
Less: Noncurrent deferred tax assets, net	915,241)	816,899)	579,173)	270,461)	236,797)	206,141)
Total assets (adjusted)	14,518,325)	13,255,458)	12,017,915)	10,000,663)	9,043,163)	8,802,375)
Adjustment to Total Liabilities
Total liabilities (as reported)	12,065,238)	11,152,604)	11,197,998)	6,895,482)	6,598,950)	6,330,823)
Less: Noncurrent deferred tax liabilities, net	486,690)	529,287)	658,937)	650,623)	660,885)	702,285)
Total liabilities (adjusted)	11,578,548)	10,623,317)	10,539,061)	6,244,859)	5,938,065)	5,628,538)
Adjustment to Total KLA Stockholders’ Equity
Total KLA stockholders’ equity (as reported)	3,368,328)	2,919,753)	1,401,351)	3,377,554)	2,665,424)	2,659,108)
Less: Net deferred tax assets (liabilities)	428,599)	287,654)	(79,764)	(380,162)	(424,231)	(496,336)
Total KLA stockholders’ equity (adjusted)	2,939,729)	2,632,099)	1,481,115)	3,757,716)	3,089,655)	3,155,444)
Adjustment to Net Income Attributable To KLA
Net income attributable to KLA (as reported)	2,761,896)	3,387,277)	3,321,807)	2,078,292)	1,216,785)	1,175,617)
Add: Deferred income tax expense (benefit)	(138,878)	(355,153)	(353,780)	(45,622)	(93,342)	(26,185)
Net income attributable to KLA (adjusted)	2,623,018)	3,032,124)	2,968,027)	2,032,670)	1,123,443)	1,149,432)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

KLA Corp., Financial Data: Reported vs. Adjusted

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KLA Corp., adjusted financial ratios

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Net Profit Margin
Reported net profit margin	28.15%	32.27%	36.06%	30.04%	20.96%	25.73%
Adjusted net profit margin	26.73%	28.89%	32.22%	29.38%	19.35%	25.16%
Total Asset Turnover
Reported total asset turnover	0.64	0.75	0.73	0.67	0.63	0.51
Adjusted total asset turnover	0.68	0.79	0.77	0.69	0.64	0.52
Financial Leverage
Reported financial leverage	4.58	4.82	8.99	3.04	3.48	3.39
Adjusted financial leverage	4.94	5.04	8.11	2.66	2.93	2.79
Return on Equity (ROE)
Reported ROE	82.00%	116.01%	237.04%	61.53%	45.65%	44.21%
Adjusted ROE	89.23%	115.20%	200.39%	54.09%	36.36%	36.43%
Return on Assets (ROA)
Reported ROA	17.90%	24.07%	26.37%	20.23%	13.11%	13.05%
Adjusted ROA	18.07%	22.87%	24.70%	20.33%	12.42%	13.06%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	KLA Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	KLA Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	KLA Corp. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	KLA Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	KLA Corp. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

KLA Corp., Financial Ratios: Reported vs. Adjusted

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	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to KLA	2,761,896)	3,387,277)	3,321,807)	2,078,292)	1,216,785)	1,175,617)
Revenues	9,812,247)	10,496,056)	9,211,883)	6,918,734)	5,806,424)	4,568,904)
Profitability Ratio
Net profit margin¹	28.15%	32.27%	36.06%	30.04%	20.96%	25.73%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to KLA	2,623,018)	3,032,124)	2,968,027)	2,032,670)	1,123,443)	1,149,432)
Revenues	9,812,247)	10,496,056)	9,211,883)	6,918,734)	5,806,424)	4,568,904)
Profitability Ratio
Adjusted net profit margin²	26.73%	28.89%	32.22%	29.38%	19.35%	25.16%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ Net profit margin = 100 × Net income attributable to KLA ÷ Revenues
= 100 × 2,761,896 ÷ 9,812,247 = 28.15%

² Adjusted net profit margin = 100 × Adjusted net income attributable to KLA ÷ Revenues
= 100 × 2,623,018 ÷ 9,812,247 = 26.73%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	KLA Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenues	9,812,247)	10,496,056)	9,211,883)	6,918,734)	5,806,424)	4,568,904)
Total assets	15,433,566)	14,072,357)	12,597,088)	10,271,124)	9,279,960)	9,008,516)
Activity Ratio
Total asset turnover¹	0.64	0.75	0.73	0.67	0.63	0.51
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenues	9,812,247)	10,496,056)	9,211,883)	6,918,734)	5,806,424)	4,568,904)
Adjusted total assets	14,518,325)	13,255,458)	12,017,915)	10,000,663)	9,043,163)	8,802,375)
Activity Ratio
Adjusted total asset turnover²	0.68	0.79	0.77	0.69	0.64	0.52

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 9,812,247 ÷ 15,433,566 = 0.64

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 9,812,247 ÷ 14,518,325 = 0.68

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	KLA Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	15,433,566)	14,072,357)	12,597,088)	10,271,124)	9,279,960)	9,008,516)
Total KLA stockholders’ equity	3,368,328)	2,919,753)	1,401,351)	3,377,554)	2,665,424)	2,659,108)
Solvency Ratio
Financial leverage¹	4.58	4.82	8.99	3.04	3.48	3.39
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	14,518,325)	13,255,458)	12,017,915)	10,000,663)	9,043,163)	8,802,375)
Adjusted total KLA stockholders’ equity	2,939,729)	2,632,099)	1,481,115)	3,757,716)	3,089,655)	3,155,444)
Solvency Ratio
Adjusted financial leverage²	4.94	5.04	8.11	2.66	2.93	2.79

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total KLA stockholders’ equity
= 15,433,566 ÷ 3,368,328 = 4.58

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total KLA stockholders’ equity
= 14,518,325 ÷ 2,939,729 = 4.94

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	KLA Corp. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to KLA	2,761,896)	3,387,277)	3,321,807)	2,078,292)	1,216,785)	1,175,617)
Total KLA stockholders’ equity	3,368,328)	2,919,753)	1,401,351)	3,377,554)	2,665,424)	2,659,108)
Profitability Ratio
ROE¹	82.00%	116.01%	237.04%	61.53%	45.65%	44.21%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to KLA	2,623,018)	3,032,124)	2,968,027)	2,032,670)	1,123,443)	1,149,432)
Adjusted total KLA stockholders’ equity	2,939,729)	2,632,099)	1,481,115)	3,757,716)	3,089,655)	3,155,444)
Profitability Ratio
Adjusted ROE²	89.23%	115.20%	200.39%	54.09%	36.36%	36.43%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ ROE = 100 × Net income attributable to KLA ÷ Total KLA stockholders’ equity
= 100 × 2,761,896 ÷ 3,368,328 = 82.00%

² Adjusted ROE = 100 × Adjusted net income attributable to KLA ÷ Adjusted total KLA stockholders’ equity
= 100 × 2,623,018 ÷ 2,939,729 = 89.23%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	KLA Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to KLA	2,761,896)	3,387,277)	3,321,807)	2,078,292)	1,216,785)	1,175,617)
Total assets	15,433,566)	14,072,357)	12,597,088)	10,271,124)	9,279,960)	9,008,516)
Profitability Ratio
ROA¹	17.90%	24.07%	26.37%	20.23%	13.11%	13.05%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to KLA	2,623,018)	3,032,124)	2,968,027)	2,032,670)	1,123,443)	1,149,432)
Adjusted total assets	14,518,325)	13,255,458)	12,017,915)	10,000,663)	9,043,163)	8,802,375)
Profitability Ratio
Adjusted ROA²	18.07%	22.87%	24.70%	20.33%	12.42%	13.06%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ ROA = 100 × Net income attributable to KLA ÷ Total assets
= 100 × 2,761,896 ÷ 15,433,566 = 17.90%

² Adjusted ROA = 100 × Adjusted net income attributable to KLA ÷ Adjusted total assets
= 100 × 2,623,018 ÷ 14,518,325 = 18.07%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	KLA Corp. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

KLA Corp. (NASDAQ:KLAC)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

KLA Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

KLA Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)