Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
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)

Lam Research Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Federal	566,106)	541,416)	620,344)	437,525)	216,513)	143,845)
State	20,081)	32,082)	20,759)	13,560)	4,724)	5,994)
Foreign	143,595)	196,842)	204,163)	162,738)	119,766)	110,283)
Current	729,782)	770,340)	845,266)	613,823)	341,003)	260,122)
Federal	(186,238)	(136,178)	(226,895)	(139,531)	(18,458)	(10,722)
State	(15,118)	(2,813)	(19,096)	(8,324)	6,524)	4,944)
Foreign	4,024)	(33,070)	(11,447)	(3,622)	(5,844)	797)
Deferred	(197,332)	(172,061)	(257,438)	(151,477)	(17,778)	(4,981)
Provision for income taxes	532,450)	598,279)	587,828)	462,346)	323,225)	255,141)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 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.	Lam Research Corp. current decreased from 2022 to 2023 and from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Lam Research Corp. deferred increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lam Research Corp. provision for income taxes increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Lam Research Corp., effective income tax rate (EITR) reconciliation

		Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
	Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective tax rate	12.21%	11.71%	11.32%	10.58%	12.55%	10.43%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lam Research Corp. effective tax rate increased from 2022 to 2023 and from 2023 to 2024.

Lam Research Corp., components of deferred tax assets and liabilities

US$ in thousands

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Tax carryforwards	396,036)	359,505)	315,396)	281,022)	249,874)	231,390)
Allowances and reserves	189,429)	192,374)	194,410)	165,335)	119,974)	97,671)
Equity-based compensation	9,981)	9,600)	8,845)	7,322)	7,167)	14,661)
Inventory valuation differences	64,135)	57,675)	52,323)	28,877)	26,069)	18,516)
Prepaid cost sharing	—)	—)	—)	—)	—)	74,139)
Outside basis differences of foreign subsidiaries	680,598)	527,139)	421,056)	193,734)	105,159)	16,260)
R&D capitalization	75,196)	36,618)	—)	—)	—)	—)
Operating lease liabilities	57,972)	50,867)	50,294)	37,562)	40,157)	—)
Finance lease assets	—)	32,905)	35,754)	—)	—)	—)
Intangible assets	4,908)	4,108)	889)	—)	—)	—)
Other	37,878)	31,773)	23,955)	22,575)	26,361)	17,972)
Gross deferred tax assets	1,516,133)	1,302,564)	1,102,922)	736,427)	574,761)	470,609)
Valuation allowance	(389,315)	(352,377)	(308,724)	(277,133)	(244,973)	(226,928)
Net deferred tax assets	1,126,818)	950,187)	794,198)	459,294)	329,788)	243,681)
Intangible assets	—)	—)	—)	(3,113)	(6,442)	(9,883)
Convertible debt	—)	—)	—)	—)	(24,530)	(46,993)
Capital assets	(142,963)	(121,948)	(114,644)	(97,602)	(105,508)	(83,298)
Amortization of goodwill	(11,287)	(12,515)	(13,789)	(13,161)	(12,256)	(11,299)
Right-of-use assets	(57,337)	(50,867)	(50,294)	(37,562)	(40,157)	—)
Finance lease liabilities	—)	(50,534)	(52,379)	—)	—)	—)
Other	(6,596)	(1,974)	(2,395)	(262)	(7,509)	(8,752)
Gross deferred tax liabilities	(218,183)	(237,838)	(233,501)	(151,700)	(196,402)	(160,225)
Net deferred tax assets (liabilities)	908,635)	712,349)	560,697)	307,594)	133,386)	83,456)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 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.	Lam Research 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.	Lam Research 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.	Lam Research Corp. net deferred tax assets (liabilities) increased from 2022 to 2023 and from 2023 to 2024.

Lam Research Corp., adjustments to financial statements

US$ in thousands

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Adjustment to Total Assets
Total assets (as reported)	18,744,728)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)
Less: Noncurrent deferred tax assets, net	908,635)	712,349)	560,697)	307,594)	133,386)	83,456)
Total assets (adjusted)	17,836,093)	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	8,539,454)	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)
Less: Net deferred tax assets (liabilities)	908,635)	712,349)	560,697)	307,594)	133,386)	83,456)
Stockholders’ equity (adjusted)	7,630,819)	7,497,823)	5,717,669)	5,719,594)	5,039,108)	4,590,409)
Adjustment to Net Income
Net income (as reported)	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Add: Deferred income tax expense (benefit)	(197,332)	(172,061)	(257,438)	(151,477)	(17,778)	(4,981)
Net income (adjusted)	3,630,440)	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

Lam Research Corp., Financial Data: Reported vs. Adjusted

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Lam Research Corp., adjusted financial ratios

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Net Profit Margin
Reported net profit margin	25.68%	25.88%	26.73%	26.72%	22.42%	22.70%
Adjusted net profit margin	24.36%	24.90%	25.24%	25.69%	22.24%	22.65%
Total Asset Turnover
Reported total asset turnover	0.80	0.93	1.00	0.92	0.69	0.80
Adjusted total asset turnover	0.84	0.96	1.04	0.94	0.70	0.81
Financial Leverage
Reported financial leverage	2.20	2.29	2.74	2.64	2.81	2.57
Adjusted financial leverage	2.34	2.41	2.91	2.72	2.86	2.60
Return on Equity (ROE)
Reported ROE	44.82%	54.94%	73.35%	64.85%	43.53%	46.89%
Adjusted ROE	47.58%	57.87%	76.04%	65.69%	44.33%	47.63%
Return on Assets (ROA)
Reported ROA	20.42%	24.02%	26.78%	24.59%	15.47%	18.26%
Adjusted ROA	20.35%	24.01%	26.14%	24.11%	15.49%	18.35%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 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.	Lam Research 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.	Lam Research Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and 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.	Lam Research 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.	Lam Research 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.	Lam Research Corp. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Lam Research Corp., Financial Ratios: Reported vs. Adjusted

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	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Revenue	14,905,386)	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)
Profitability Ratio
Net profit margin¹	25.68%	25.88%	26.73%	26.72%	22.42%	22.70%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	3,630,440)	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)
Revenue	14,905,386)	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)
Profitability Ratio
Adjusted net profit margin²	24.36%	24.90%	25.24%	25.69%	22.24%	22.65%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 3,827,772 ÷ 14,905,386 = 25.68%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 3,630,440 ÷ 14,905,386 = 24.36%

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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.	Lam Research Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue	14,905,386)	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)
Total assets	18,744,728)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)
Activity Ratio
Total asset turnover¹	0.80	0.93	1.00	0.92	0.69	0.80
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	14,905,386)	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)
Adjusted total assets	17,836,093)	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)
Activity Ratio
Adjusted total asset turnover²	0.84	0.96	1.04	0.94	0.70	0.81

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 14,905,386 ÷ 18,744,728 = 0.80

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 14,905,386 ÷ 17,836,093 = 0.84

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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.	Lam Research Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	18,744,728)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)
Stockholders’ equity	8,539,454)	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)
Solvency Ratio
Financial leverage¹	2.20	2.29	2.74	2.64	2.81	2.57
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	17,836,093)	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)
Adjusted stockholders’ equity	7,630,819)	7,497,823)	5,717,669)	5,719,594)	5,039,108)	4,590,409)
Solvency Ratio
Adjusted financial leverage²	2.34	2.41	2.91	2.72	2.86	2.60

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 18,744,728 ÷ 8,539,454 = 2.20

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 17,836,093 ÷ 7,630,819 = 2.34

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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.	Lam Research Corp. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Stockholders’ equity	8,539,454)	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)
Profitability Ratio
ROE¹	44.82%	54.94%	73.35%	64.85%	43.53%	46.89%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	3,630,440)	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)
Adjusted stockholders’ equity	7,630,819)	7,497,823)	5,717,669)	5,719,594)	5,039,108)	4,590,409)
Profitability Ratio
Adjusted ROE²	47.58%	57.87%	76.04%	65.69%	44.33%	47.63%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 3,827,772 ÷ 8,539,454 = 44.82%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 3,630,440 ÷ 7,630,819 = 47.58%

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

	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Total assets	18,744,728)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)
Profitability Ratio
ROA¹	20.42%	24.02%	26.78%	24.59%	15.47%	18.26%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	3,630,440)	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)
Adjusted total assets	17,836,093)	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)
Profitability Ratio
Adjusted ROA²	20.35%	24.01%	26.14%	24.11%	15.49%	18.35%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 3,827,772 ÷ 18,744,728 = 20.42%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 3,630,440 ÷ 17,836,093 = 20.35%

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

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Lam Research Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Lam Research 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)