What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-10-24 compared with 2022-04-26 · 130 added, 348 removed, 435 unchanged (52% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

Revenue $ 5,074,121 $ 4,304,465

16 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

Lam Research Corporation 2023 Q1 10-Q 3

LAM RESEARCH CORPORATION

1 unchanged sentence

(in thousands)

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

Net income $ 1,425,879 $ 1,179,744

2 unchanged sentences

Cash flow hedges:

Net unrealized gains during the period 12,506 8,024 16,293 12,546

Net (gains) losses reclassified into net income ( 5,759 ) ( 207 ) ( 17,205 ) 843

Net unrealized gains (losses) during the period 18,803 ( 9,005 )

Net gains reclassified into net income ( 9,297 ) ( 3,542 )

9,506 ( 12,547 )

Available-for-sale investments:

Net unrealized losses during the period ( 1,333 ) ( 1,623 ) ( 4,523 ) ( 3,667 )

Net unrealized gains (losses) during the period 80 ( 2,405 )

Net (gains) losses reclassified into net income ( 53 ) 1,145

( 1,367 ) ( 1,461 ) ( 3,067 ) ( 2,940 )

Defined benefit plans, net change in unrealized component 293 199

2 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

Lam Research Corporation 2023 Q1 10-Q 4

LAM RESEARCH CORPORATION

1 unchanged sentence

(in thousands, except per share data)

September 25,

2022 June 26,

2 unchanged sentences

Investments 120,551 135,731

Accounts receivable, less allowance of $ 5,602 as of March 27, 2022, and $ 5,255 as of June 27, 2021

Accounts receivable, less allowance of $ 5,536 as of September 25, 2022, and $ 5,606 as of June 26, 2022

4,569,735 4,313,818

23 unchanged sentences

Common stock, at par value of $ 0.001 per share;

authorized, 400,000 shares as of March 27, 2022 and June 27, 2021;

issued and outstanding, 138,707 shares as of March 27, 2022, and 142,501 shares as of June 27, 2021

authorized, 400,000 shares as of September 25, 2022 and June 26, 2022;

issued and outstanding, 136,374 shares as of September 25, 2022, and 136,975 shares as of June 26, 2022

Additional paid-in capital 7,492,822 7,414,916

Treasury stock, at cost;

155,323 shares as of March 27, 2022, and 150,766 shares as of June 27, 2021

157,773 shares as of September 25, 2022, and 157,087 shares as of June 26, 2022

( 19,591,249 ) ( 19,481,429 )

5 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

Lam Research Corporation 2023 Q1 10-Q 5

LAM RESEARCH CORPORATION

1 unchanged sentence

(in thousands) (unaudited)

Nine Months Ended

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

CASH FLOWS FROM OPERATING ACTIVITIES:

10 unchanged sentences

Purchases of available-for-sale securities — ( 25,297 )

Maturities of available-for-sales securities 167,123 1,951,037

Sales of available-for-sale securities 1,543,094 956,261

Proceeds from maturities of available-for-sales securities 14,695 106,836

Proceeds from sales of available-for-sale securities — 656,504

Other, net ( 2,435 ) ( 4,923 )

Net cash provided by (used for) investing activities 688,212 ( 615,790 )

Net cash (used for) provided by investing activities ( 127,803 ) 596,693

CASH FLOWS FROM FINANCING ACTIVITIES:

2 unchanged sentences

Dividends paid ( 205,615 ) ( 185,431 )

Reissuance of treasury stock related to employee stock purchase plan 46,380 41,434

Proceeds from issuance of common stock 6,796 742

2 unchanged sentences

Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 16,925 ) ( 3,776 )

Net decrease in cash, cash equivalents, and restricted cash ( 224,995 ) ( 1,242,257 )

Net increase (decrease) in cash, cash equivalents, and restricted cash 733,919 ( 377,151 )

Cash, cash equivalents, and restricted cash at beginning of period 3,773,535 4,670,750

5 unchanged sentences

Transfers of finished goods inventory to property and equipment 20,798 15,518

Reconciliation of cash, cash equivalents, and restricted cash March 27,

2022 March 28,

Reconciliation of cash, cash equivalents, and restricted cash September 25,

2022 September 26,

Cash and cash equivalents $ 4,256,499 $ 4,042,151

2 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

Lam Research Corporation 2023 Q1 10-Q 6

LAM RESEARCH CORPORATION

2 unchanged sentences

Three Months Ended

March 27, 2022

Shares Common

Stock Additional

Capital Treasury

Stock Accumulated

Comprehensive

Loss Retained

Earnings Total

Balance at December 26, 2021 140,275 $ 140 $ 7,220,359 $ ( 17,294,255 ) $ ( 88,146 ) $ 16,637,683 $ 6,475,781

Issuance of common stock 664 1 491 — — — 492

Purchase of treasury stock ( 2,232 ) ( 2 ) — ( 1,322,525 ) — — ( 1,322,527 )

Equity-based compensation expense — — 68,543 — — — 68,543

Net income — — — — — 1,021,778 1,021,778

Other comprehensive loss — — — — ( 9,520 ) — ( 9,520 )

Cash dividends declared ($ 1.50 per common share)

— — — — — ( 208,057 ) ( 208,057 )

Balance at March 27, 2022 138,707 $ 139 $ 7,289,393 $ ( 18,616,780 ) $ ( 97,666 ) $ 17,451,404 $ 6,026,490

Nine Months Ended

March 27, 2022

September 25, 2022

Shares Common

8 unchanged sentences

Purchase of treasury stock ( 686 ) ( 1 ) — ( 109,820 ) — — ( 109,821 )

Reissuance of treasury stock 97 — 42,271 4,109 — — 46,380

Equity-based compensation expense — — 71,110 — — — 71,110

3 unchanged sentences

— — — — — ( 235,980 ) ( 235,980 )

Balance at March 27, 2022 138,707 $ 139 $ 7,289,393 $ ( 18,616,780 ) $ ( 97,666 ) $ 17,451,404 $ 6,026,490

See Notes to Condensed Consolidated Financial Statements

Balance at September 25, 2022 136,374 $ 136 $ 7,492,822 $ ( 19,591,249 ) $ ( 133,765 ) $ 19,644,623 $ 7,412,567

Three Months Ended

March 28, 2021

Shares Common

Stock Additional

Capital Treasury

Stock Accumulated

Comprehensive

Loss Retained

Earnings Total

Balance at December 26, 2020 143,205 $ 143 $ 6,854,681 $ ( 14,135,555 ) $ ( 56,126 ) $ 12,839,890 $ 5,503,033

Issuance of common stock 848 1 9,625 — — — 9,626

Purchase of treasury stock ( 1,731 ) ( 1 ) — ( 1,077,379 ) — — ( 1,077,380 )

Equity-based compensation expense — — 55,746 — — — 55,746

Effect of conversion of convertible notes 285 — ( 327 ) — — — ( 327 )

Reclassification from temporary to permanent equity — — 2,298 — — — 2,298

Net income — — — — — 1,071,121 1,071,121

Other comprehensive loss — — — — ( 7,171 ) — ( 7,171 )

Cash dividends declared ($ 1.30 per common share)

— — — — — ( 185,330 ) ( 185,330 )

Balance at March 28, 2021 142,607 $ 143 $ 6,922,023 $ ( 15,212,934 ) $ ( 63,297 ) $ 13,725,681 $ 5,371,616

Nine Months Ended

March 28, 2021

September 26, 2021

Shares Common

8 unchanged sentences

Purchase of treasury stock ( 1,737 ) ( 2 ) — ( 1,216,872 ) — — ( 1,216,874 )

Reissuance of treasury stock 207 — 32,261 9,173 — — 41,434

Equity-based compensation expense — — 58,099 — — — 58,099

Effect of conversion of convertible notes 903 1 ( 988 ) — — — ( 987 )

Reclassification from temporary to permanent equity — — 7,778 — — — 7,778

Adoption of ASU 2018-18 — — — — — 1,157 1,157

Net income — — — — — 1,179,744 1,179,744

Other comprehensive income — — — — 30,914 — 30,914

Other comprehensive loss — — — — ( 17,640 ) — ( 17,640 )

Cash dividends declared ($ 1.50 per common share)

— — — — — ( 211,216 ) ( 211,216 )

Balance at March 28, 2021 142,607 $ 143 $ 6,922,023 $ ( 15,212,934 ) $ ( 63,297 ) $ 13,725,681 $ 5,371,616

Balance at September 26, 2021 140,811 $ 141 $ 7,111,803 $ ( 16,863,573 ) $ ( 81,768 ) $ 15,653,440 $ 5,820,043

See Notes to Condensed Consolidated Financial Statements

Lam Research Corporation 2023 Q1 10-Q 7

LAM RESEARCH CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 27, 2022

September 25, 2022

NOTE 1 — BASIS OF PRESENTATION

12 unchanged sentences

The Company’s current fiscal year will end June 25, 2023 and includes 52 weeks.

The quarters ended March 27, 2022 (the “March 2022 quarter”) and March 28, 2021 included 13 weeks.

The quarters ended September 25, 2022 (the “September 2022 quarter”) and September 26, 2021 included 13 weeks.

NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted

The Company did not adopt any new accounting standards during the first quarter of fiscal year 2022 that had a material impact on the Company’s Condensed Consolidated Financial Statements.

Updates Not Yet Adopted or Effective

In November 2021, the Financial Accounting Standards Board issued Accounting Standards Update 2021-10, “Government Assistance (Topic 832):

Disclosures by Business Entities about Government Assistance,” which requires business entities to make annual disclosures, including the nature of transactions and the related accounting policy used to account for the transactions, significant terms and conditions, and line items affected, about transactions with a government (including government assistance) that are accounted for by analogizing to a grant or contribution accounting model.

The guidance is effective for financial statements issued for annual periods beginning after December 15, 2021, with early adoption permitted.

The Company is required to adopt this standard in the first quarter of fiscal year 2023 for the annual reporting period ending June 25, 2023.

The guidance may be applied either prospectively to all in-scope transactions at the date of initial application or retrospectively.

The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

Recently Adopted or Effective

The Company has not adopted any new accounting standards during the first quarter of fiscal year 2023 that have a material impact on the Company’s Condensed Consolidated Financial Statements.

Updates Not Yet Effective

There are no new accounting pronouncements not yet adopted or effective that are expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.

NOTE 3 — REVENUE

Deferred Revenue

Revenue of $ 79.1 million and $ 835.8 million included in deferred revenue as of June 27, 2021 was recognized during the three and nine months ended March 27, 2022.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of March 27, 2022 and when the Company expects to recognize the amounts as revenue:

Revenue of $ 1,542.5 million included in deferred profit at June 26, 2022 was recognized during the three months ended September 25, 2022.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 25, 2022 and when the Company expects to recognize the amounts as revenue:

Less than 1 Year 1-3 Years More than 3 Years Total

11 unchanged sentences

memory, foundry, and logic/integrated device manufacturing.

Lam Research Corporation 2023 Q1 10-Q 8

The following table presents the Company’s revenues disaggregated between system and its customer support-related revenue:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

(In thousands)

5 unchanged sentences

The following table presents the Company’s revenues disaggregated by geographic region:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

(In thousands)

China $ 1,530,475 $ 1,607,710

Korea 961,300 1,195,711 2,947,657 2,664,493

Taiwan 1,120,946 638,066

Korea 855,378 918,137

Southeast Asia 541,064 365,248

4 unchanged sentences

The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

Memory 52 % 64 %

2 unchanged sentences

NOTE 4 — EQUITY-BASED COMPENSATION PLANS

The Lam Research Corporation 2015 Stock Incentive Plan, as amended (the “2015 Plan”), provides for the grant of non-qualified equity-based awards of the Company’s Common Stock to eligible employees and non-employee directors, including stock options, restricted stock units (“RSUs”), and market-based performance RSUs (“market-based PRSUs”).

The Lam Research Corporation 2015 Stock Incentive Plan, as amended, provides for the grant of non-qualified equity-based awards of the Company’s Common Stock to eligible employees and non-employee directors, including stock options, restricted stock units (“RSUs”), and market-based performance RSUs (“market-based PRSUs”).

An option is a right to purchase Common Stock at a set price.

3 unchanged sentences

The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions.

Lam Research Corporation 2023 Q1 10-Q 9

The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

(in thousands)

3 unchanged sentences

The significant components of other income (expense), net, are as follows:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

(in thousands)

5 unchanged sentences

$ ( 43,095 ) $ ( 28,857 )

Other, net includes an unrealized gain totaling $ 63.6 million associated with an equity investee that became publicly traded during the nine months ended March 27, 2022.

Refer to Note 8 - Financial Instruments for additional information regarding the Company’s investments.

NOTE 6 — INCOME TAX EXPENSE

The Company’s provision for income taxes and effective tax rate are as follows:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

(in thousands, except percentages)

2 unchanged sentences

The difference between the U.S.

federal statutory tax rate of 21% and the Company’s effective tax rate for the three and nine months ended March 27, 2022 and March 28, 2021 was primarily due to income in lower tax jurisdictions.

The Company transferred its international sales operations from Switzerland to Malaysia, effective from fiscal year 2022.

Through fiscal year 2036, the Company expects to operate under various tax incentives in Malaysia which provide exemptions on foreign income earned and are contingent upon meeting certain conditions.

The Internal Revenue Service (“IRS”) is examining the Company’s U.S.

federal statutory tax rate of 21% and the Company’s effective tax rate for the three months ended September 25, 2022 and September 26, 2021 was primarily due to income in lower tax jurisdictions.

The Internal Revenue Service (“IRS”) has examined the Company’s U.S.

federal income tax return for the fiscal year ended June 24, 2018.

As of March 27, 2022, no significant adjustments have been proposed by the IRS.

The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the IRS will occur.

As of September 25, 2022, the IRS has proposed adjustments resulting in a tax liability increase of approximately $ 50.0 million, which was previously reserved.

The Company has agreed to pay the amount and has made a partial cash settlement in the September quarter with the remaining settlement expected to be paid based on the IRS requirements.

The Company is in various stages of examinations in connection with all of its tax audits worldwide, and it is difficult to determine when these examinations will be settled.

1 unchanged sentence

The change in uncertain tax positions as a result of lapses of statutes of limitation may range up to $ 18.8 million.

Lam Research Corporation 2023 Q1 10-Q 10

NOTE 7 — NET INCOME PER SHARE

2 unchanged sentences

The following table reconciles the inputs to the basic and diluted computations for net income per share.

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

(in thousands, except per share data)

3 unchanged sentences

Employee stock plans 317 869

Convertible notes — 518 — 725

Diluted average shares outstanding 137,208 142,612

2 unchanged sentences

For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method.

The impact from potentially dilutive securities, including options and RSUs, was not material for the three and nine months ended March 27, 2022 and March 28, 2021.

The impact from potentially dilutive securities, including options and RSUs, was not material for the three months ended September 25, 2022 and September 26, 2021.

NOTE 8 — FINANCIAL INSTRUMENTS

17 unchanged sentences

Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions.

Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Lam Research Corporation 2023 Q1 10-Q 11

Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active for identical assets or liabilities, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data.

The Company engages with pricing vendors to provide fair values for a majority of its Level 1 and Level 2 investments.

The vendors provide either a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing.

The vendors provide either a quoted market price or use observable inputs without applying significant adjustments in their pricing.

Significant observable inputs include interest rates and yield curves observable at commonly quoted intervals, volatility and credit risks.

1 unchanged sentence

The Company’s primary financial instruments include its cash, cash equivalents, investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and leases, and foreign currency related derivative instruments.

The estimated fair value of cash, accounts receivable, and accounts payable approximates their carrying value due to the short period of time to their maturities.

The estimated fair value of cash, time deposits, accounts receivable, and accounts payable approximates their carrying value due to the short period of time to their maturities.

The estimated fair values of lease obligations approximate their carrying value as the majority of these obligations have interest rates that adjust to market rates on a periodic basis.

Refer to Note 12 - Long-Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s senior notes.

The fair value of the Company’s senior notes is based on the quoted price (level 2);

the fair value of the Company's senior notes have not changed materially to that disclosed in Note 14, “Long Term Debt and Other Borrowings,” to our Consolidated Financial Statements in Part II, Item 8 of our 2022 Form 10-K.

Equity Investments measured at fair value on a non-recurring basis

As of March 27, 2022, and June 27, 2021, equity investments of $ 121.8 million and $ 117.3 million, respectively, were recognized in other assets in the Condensed Consolidated Balance Sheets.

With the exception of one equity investee that became publicly traded during the nine months ended March 27, 2022, net gains resulting from the application of the measurement alternative to the Company’s equity investments were immaterial for the three and nine months ended March 27, 2022, and March 28, 2021.

Refer to Note 5 - Other Income (Expense), net for additional information regarding the gain associated with an equity investee that became publicly traded in the nine months ended March 27, 2022.

Additionally, following the equity investee becoming publicly traded, the Company began measuring the investment at fair market value on a recurring basis in the category corporate equities.

As of September 25, 2022, and June 26, 2022, equity investments of $ 126.0 million and $ 125.2 million, respectively, were reported in other assets in the Condensed Consolidated Balance Sheets.

Net gains resulting from the application of the measurement alternative to the Company’s equity investments were immaterial for the three months ended September 25, 2022, and September 26, 2021.

Debt and Equity Investments measured at fair value on a recurring basis

The following tables set forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of March 27, 2022, and June 27, 2021:

March 27, 2022

September 25, 2022

(Reported Within)

5 unchanged sentences

(in thousands)

Cash $ 1,217,415 $ — $ — $ 1,217,415 $ 1,216,406 $ — $ 1,009 $ —

Time deposits 2,228,391 — — 2,228,391 1,978,364 — 250,027 —

Money market funds $ 1,237,763 $ — $ — $ 1,237,763 $ 1,237,763 $ — $ — $ —

Corporate equities 3,000 63,634 — 66,634 — — — 66,634

Mutual funds 82,051 9,915 ( 2,518 ) 89,448 — — — 89,448

2 unchanged sentences

Level 2 Total 122,644 — ( 2,093 ) 120,551 — 120,551 — —

Total subject to fair value hierarchy $ 1,442,458 $ 9,915 $ ( 4,611 ) $ 1,447,762

Cash $ 1,644,514 $ 1,643,586 $ — $ 928 $ —

Time deposits 1,625,177 1,375,150 — 250,027 —

Total $ 4,717,453 $ 4,256,499 $ 120,551 $ 250,955 $ 89,448

Lam Research Corporation 2023 Q1 10-Q 12

June 26, 2022

6 unchanged sentences

(in thousands)

Cash $ 875,738 $ — $ — $ 875,738 $ 873,278 $ — $ 2,460 $ —

Time deposits 1,548,874 — — 1,548,874 1,298,847 — 250,027 —

Money market funds $ 712,076 $ — $ — $ 712,076 $ 712,076 $ — $ — $ —

Treasury and agencies 204,743 96 ( 47 ) 204,792 — 204,792 — —

Mutual funds 84,851 12,027 ( 1,659 ) 95,219 — — — 95,219

Level 1 Total 796,927 12,027 ( 1,659 ) 807,295 712,076 — — 95,219

Government-sponsored enterprises 3,498 7 — 3,505 — 3,505 — —

Foreign government bonds 32,995 21 ( 4 ) 33,012 — 33,012 — —

Corporate notes and bonds 137,859 — ( 2,128 ) 135,731 — 135,731 — —

Mortgage backed securities — residential 5,623 54 — 5,677 — 5,677 — —

Mortgage backed securities — commercial 18,830 17 ( 59 ) 18,788 — 18,788 — —

Level 2 Total 137,859 — ( 2,128 ) 135,731 — 135,731 — —

Total subject to fair value hierarchy $ 934,786 $ 12,027 $ ( 3,787 ) $ 943,026

Cash $ 1,017,253 $ 1,015,747 $ — $ 1,506 $ —

Time deposits 2,044,206 1,794,178 — 250,028 —

Total $ 4,004,485 $ 3,522,001 $ 135,731 $ 251,534 $ 95,219

7 unchanged sentences

All other differences between fair value and amortized cost are recognized in other comprehensive income.

No such losses were recognized through the income statement during the three and nine months ended March 27, 2022 and March 28, 2021.

Gross realized gains/(losses) from sales of investments were insignificant in the three and nine months ended March 27, 2022 and March 28, 2021.

The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions:

March 27, 2022

No such losses were recognized through the income statement during the three months ended September 25, 2022 and September 26, 2021.

Gross realized gains/(losses) from sales of investments were insignificant in the three months ended September 25, 2022 and September 26, 2021.

The following is an analysis of the Company’s investments in unrealized loss positions:

September 25, 2022

Unrealized Losses

8 unchanged sentences

$ 155,220 $ ( 4,352 ) $ 1,488 $ ( 259 ) $ 156,708 $ ( 4,611 )

The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of March 27, 2022:

The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of September 25, 2022:

(in thousands)

2 unchanged sentences

$ 2,985,584 $ 2,983,491

Lam Research Corporation 2023 Q1 10-Q 13

The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 12 months.

1 unchanged sentence

Derivative Instruments and Hedging

The Company carries derivative financial instruments (“derivatives”) on its Condensed Consolidated Balance Sheets at their fair values.

The Company enters into foreign currency forward contracts and foreign currency options with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations.

In addition, the Company enters into interest rate swap arrangements to manage interest rate risk.

The counterparties to these derivatives are large global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material.

Under the master netting agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other.

However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet.

As of March 27, 2022 and June 27, 2021, the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be immaterial to the Condensed Consolidated Balance Sheets.

Cash Flow Hedges

The Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-U.S.

dollar transactions or cash flows.

The Company’s policy is to mitigate the foreign exchange risk arising from the fluctuations in the value of these non-U.S.

dollar denominated transactions or cash flows through a foreign currency cash flow hedging program, using forward contracts and foreign currency options that generally expire within 12 months and no later than 24 months.

These hedge contracts are designated as cash flow hedges and are carried on the Company’s balance sheet at fair value with the effective portion of the contracts’ gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in revenue/expense in the same period the hedged items affect earnings.

In addition, the Company has entered into interest rate swap agreements to hedge against the variability of cash flows due to changes in certain benchmark interest rates on fixed rate debt.

These instruments are designated as cash flow hedges at inception and are settled in conjunction with the issuance of debt.

The effective portion of the contracts’ gains or losses is included in accumulated other comprehensive income (loss) and is amortized into income as the hedged item affects earnings.

At inception and at each quarter-end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis.

Changes in the fair value of foreign exchange contracts due to changes in time value are included in the assessment of effectiveness.

To qualify for hedge accounting, the hedge relationship must meet criteria relating to both the derivative instrument and the hedged item.

These criteria include identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows will be measured.

To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be tested to demonstrate an expectation of providing highly effective offsetting changes to future cash flows on hedged transactions.

When derivative instruments are designated and qualify as effective cash flow hedges, the Company recognizes effective changes in the fair value of the hedging instrument within accumulated other comprehensive income (loss) until the hedged exposure is realized.

Consequently, the Company’s results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments.

If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges.

If this were to occur, future changes in the fair values of the Company’s derivative instruments would be recognized in earnings.

Additionally, related amounts previously recorded in other comprehensive income would be reclassified to earnings immediately.

There were no material gains or losses during the three and nine months ended March 27, 2022 and March 28, 2021 associated with forecasted transactions that did not occur.

As of March 27, 2022 and June 27, 2021, the fair value of outstanding cash flow hedges was not material.

Additionally, as of March 27, 2022, the Company had an immaterial net gain or loss accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges and interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 12 months.

The following table provides the total notional value of cash flow hedge instruments outstanding as of March 27, 2022:

(In thousands)

Buy Contracts $ 432,352

Sell Contracts 260,210

The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows:

Three Months Ended Nine Months Ended

March 27, 2022 March 27, 2022

Gain or (Loss)

Recognized in or Reclassified into Net Income Gain (Loss)

into Net Income Gain (Loss)

in AOCI Gain (Loss)

into Net Income

Derivatives in Cash Flow Hedging Relationships (in thousands)

Foreign Exchange Contracts Revenue $ 16,260 $ 10,383 $ 30,701 $ 26,751

Foreign Exchange Contracts Cost of goods sold ( 3,840 ) ( 3,752 ) ( 13,974 ) ( 6,620 )

Foreign Exchange Contracts Research and Development — ( 3 ) ( 1,247 ) ( 3 )

Foreign Exchange Contracts Selling, general, and administrative ( 191 ) ( 524 ) ( 3,602 ) ( 1,071 )

Interest Rate Contracts Other income (expense), net — ( 1,062 ) — ( 3,170 )

$ 12,229 $ 5,042 $ 11,878 $ 15,887

Three Months Ended Nine Months Ended

March 28, 2021 March 28, 2021

Gain or (Loss)

Recognized in or Reclassified into Income Gain (Loss)

in AOCI (Loss) Gain

into Net Income Gain

in AOCI (Loss) Gain

into Net Income

Derivatives in Cash Flow Hedging Relationships (in thousands)

Foreign Exchange Contracts Revenue $ 15,285 $ ( 1,323 ) $ 6,948 $ ( 3,598 )

Foreign Exchange Contracts Cost of goods sold ( 3,473 ) 1,355 3,429 3,073

Foreign Exchange Contracts Research and Development ( 1,319 ) — 950 —

Foreign Exchange Contracts Selling, general, and administrative ( 1,741 ) 1,326 4,056 2,649

Interest Rate Contracts Other income (expense), net — ( 962 ) — ( 2,871 )

$ 8,752 $ 396 $ 15,383 $ ( 747 )

Balance Sheet Hedges

The Company also enters into foreign currency forward contracts to hedge fluctuations associated with foreign currency denominated monetary assets and liabilities, primarily cash, third-party accounts receivable, accounts payable, and intercompany receivables and payables.

These forward contracts are not designated for hedge accounting treatment.

Therefore, the change in the carrying value of these derivatives is recorded as a component of other income (expense), net and offsets the change in fair value of the foreign currency denominated assets and liabilities related to remeasurement, which are also recorded in other income (expense), net.

As of March 27, 2022 and June 27, 2021, the fair value of outstanding balance sheet hedges was not material.

The following table provides the total notional value of balance sheet hedge instruments outstanding as of March 27, 2022:

(In thousands)

Buy Contracts $ 291,892

Sell Contracts 290,401

The effect of the Company’s balance sheet hedge derivative instruments on the Company’s Condensed Consolidated Statements of Operations was as follows:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Derivatives Not Designated as Hedging Instruments:

of Gain Recognized

in Income Gain

in Net Income Gain

in Net Income

(in thousands)

Foreign Exchange Contracts Other income (expense), net $ 1,850 $ 2,992 $ 11,787 $ 6,895

The Company’s hedging strategies and policies are unchanged to those disclosed in Note 9, “Financial Instruments,” to our Consolidated Financial Statements in Part II, Item 8 of our 2022 Form 10-K.

The financial statement impacts from derivative instruments and hedging activities were not material as of and for the three months ended September 25, 2022 and September 26, 2021.

Concentrations of Credit Risk

13 unchanged sentences

Inventories consist of the following:

September 25,

2022 June 26,

5 unchanged sentences

NOTE 10 — GOODWILL AND INTANGIBLE ASSETS

The balance of goodwill is approximately $ 1.5 billion as of March 27, 2022 and June 27, 2021.

As of March 27, 2022 and June 27, 2021, $ 61.1 million of the goodwill balance is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

The balance of goodwill is approximately $ 1.5 billion as of September 25, 2022 and June 26, 2022.

As of September 25, 2022 and June 26, 2022, $ 62.0 million of the goodwill balance is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

Lam Research Corporation 2023 Q1 10-Q 14

Intangible Assets

The following table provides the Company’s intangible assets, other than goodwill:

March 27, 2022 June 27, 2021

September 25, 2022 June 26, 2022

Gross Accumulated

6 unchanged sentences

Total intangible assets $ 1,498,130 $ ( 1,387,745 ) $ 110,385 $ 1,477,997 $ ( 1,376,147 ) $ 101,850

The Company recognized $ 20.4 million and $ 17.9 million in intangible asset amortization expense during the three months ended March 27, 2022 and March 28, 2021, respectively.

The Company recognized $ 58.9 million and $ 52.3 million in intangible asset amortization expense during the nine months ended March 27, 2022 and March 28, 2021, respectively.

The estimated future amortization expense of intangible assets as of March 27, 2022, is reflected in the table below.

The Company recognized $ 11.6 million and $ 19.1 million in intangible asset amortization expense during the three months ended September 25, 2022 and September 26, 2021, respectively.

The estimated future amortization expense of intangible assets as of September 25, 2022, is reflected in the table below.

The table excludes $ 28.9 million of capitalized costs for internal-use software that have not been placed into service.

5 unchanged sentences

Accrued expenses and other current liabilities consist of the following:

September 25,

2022 June 26,

6 unchanged sentences

$ 1,948,776 $ 1,974,272

NOTE 12 — LONG-TERM DEBT AND OTHER BORROWINGS

As of March 27, 2022, and June 27, 2021, the Company’s outstanding debt consisted of the following:

March 27, 2022 June 27, 2021

(in thousands) Effective Interest Rate Amount

(in thousands) Effective Interest Rate

Fixed-rate 3.80 % Senior Notes Due March 15, 2025 ("2025 Notes")

500,000 3.87 % 500,000 3.87 %

Fixed-rate 3.75 % Senior Notes Due March 15, 2026 ("2026 Notes")

750,000 3.86 % 750,000 3.86 %

Fixed-rate 4.00 % Senior Notes Due March 15, 2029 ("2029 Notes")

1,000,000 4.09 % 1,000,000 4.09 %

Fixed-rate 1.90 % Senior Notes Due June 15, 2030 ("2030 Notes")

750,000 2.01 % 750,000 2.01 %

Fixed-rate 4.875 % Senior Notes Due March 15, 2049 ("2049 Notes")

750,000 4.93 % 750,000 4.93 %

Fixed-rate 2.875 % Senior Notes Due June 15, 2050 ("2050 Notes")

750,000 2.93 % 750,000 2.93 %

Fixed-rate 3.125 % Senior Notes Due June 15, 2060 ("2060 Notes")

500,000 3.18 % 500,000 3.18 %

Total debt outstanding, at par 5,000,000 5,000,000

Unamortized discount ( 36,250 ) ( 38,243 )

Fair value adjustment - interest rate contracts 5,282 (1)

Unamortized bond issuance costs ( 6,983 ) ( 7,443 )

Total debt outstanding, at carrying value $ 4,962,049 $ 4,960,935

Long-term debt $ 4,962,049 $ 4,960,935

____________________________

(1) This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented.

On May 5, 2020, the Company completed a public offering of $ 750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2030 (the “2030 Notes”), $ 750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2050 (the “2050 Notes”), and $ 500 million aggregate principal amount of the Company’s Senior Notes due June 15, 2060 (the “2060 Notes”).

The Company pays interest at an annual rate of 1.90 %, 2.875 %, and 3.125 %, on the 2030, 2050, and 2060 Notes, respectively, on a semi-annual basis on June 15 and December 15 of each year.

On March 4, 2019, the Company completed a public offering of $ 750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2026 (the “2026 Notes”), $ 1.0 billion aggregate principal amount of the Company’s Senior Notes due March 15, 2029 (the “2029 Notes”), and $ 750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2049 (the “2049 Notes”).

The Company pays interest at an annual rate of 3.75 %, 4.00 %, and 4.875 %, on the 2026, 2029, and 2049 Notes, respectively, on a semi-annual basis on March 15 and September 15 of each year.

On March 12, 2015, the Company completed a public offering of $ 500 million aggregate principal amount of the Company’s Senior Notes due March 15, 2025 (the “2025 Notes”).

The Company pays interest at an annual rate of 3.80 % on the 2025 Notes on a semi-annual basis on March 15 and September 15 of each year.

The Company may redeem the 2025, 2026, 2029, 2030, 2049, 2050, and 2060 Notes (collectively the “Senior Notes”) at a redemption price equal to 100 % of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect to the Senior Notes and accrued and unpaid interest before December 15, 2024 for the 2025 Notes, before January 15, 2026 for the 2026 Notes, before December 15, 2028 for the 2029 Notes, before March 15, 2030 for the 2030 Notes, before September 15, 2048 for the 2049 Notes, before December 15, 2049 for the 2050 Notes, and before December 15, 2059 for the 2060 Notes.

The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after December 24, 2024 for the 2025 Notes, on or after January 15, 2026 for the 2026 Notes, on or after December 15, 2028 for the 2029 Notes, on or after March 15, 2030 for the 2030 Notes, on or after September 15, 2048 for the 2049 Notes, on or after December 15, 2049 for the 2050 Notes, and on or after December 15, 2059 for the 2060 Notes.

In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101 % of the principal amount of the respective note, plus accrued and unpaid interest.

Selected additional information regarding the Senior Notes outstanding as of March 27, 2022, is as follows:

Remaining Amortization period Fair Value of Notes (Level 2)

(years) (in thousands)

2025 Notes 3.0 $ 511,930

2026 Notes 4.0 $ 768,360

2029 Notes 7.0 $ 1,042,400

2030 Notes 8.2 $ 672,555

2049 Notes 27.0 $ 871,748

2050 Notes 28.2 $ 643,845

2060 Notes 38.2 $ 429,705

Revolving Credit Facility

On March 12, 2014, the Company established an unsecured Credit Agreement.

This agreement was amended on November 10, 2015 (the “Amended and Restated Credit Agreement”), October 13, 2017 (the “2nd Amendment”), February 25, 2019 (the “3rd Amendment”), and June 17, 2021 (the “Second Amended and Restated Credit Agreement”).

The Second Amended and Restated Credit Agreement provides for a $ 1.50 billion revolving credit facility with a syndicate of lenders, along with an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $ 600.0 million, for a potential total commitment of $ 2.10 billion.

The facility matures on June 17, 2026.

Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5 %, or (c) one-month LIBOR plus 1.0 %, plus a spread of 0.00 % to 0.30 %, or (2) LIBOR multiplied by the statutory rate, plus a spread of 0.805 % to 1.30 %, in each case plus a facility fee, with such spread and facility fee determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt.

Such spreads and such facility fees are further subject to sustainability adjustments as described in the Second Amended and Restated Credit Agreement, in each case based on the Company’s performance of certain energy savings and health and safety standards metrics.

Principal and any accrued and unpaid interest is due and payable upon maturity.

Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s credit rating.

The Second Amended and Restated Credit Agreement incorporates provisions for the replacement of LIBOR or other reference rates with alternative reference rates under certain circumstances, including when, or if, such reference rates cease to be available.

The Second Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants, and events of default.

As of March 27, 2022, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants.

Commercial Paper Program

On November 13, 2017, the Company established a commercial paper program (“the CP Program”) under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $ 1.25 billion.

In July 2021, the Company amended the CP Program size to a maximum aggregate amount outstanding at any time of $ 1.50 billion.

The net proceeds from the CP Program will be used for general corporate purposes, including repurchases of the Company’s Common Stock from time to time under the Company’s stock repurchase program.

Amounts available under the CP Program may be re-borrowed.

The CP Program is backstopped by the Company’s Revolving Credit Arrangement.

As of March 27, 2022 and June 27, 2021, the Company had no outstanding borrowings under the CP Program.

Interest Cost

The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, and the revolving credit facility during the three and nine months ended March 27, 2022 and March 28, 2021.

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

(in thousands)

Contractual interest coupon $ 43,782 $ 49,487 $ 131,346 $ 148,573

Amortization of interest discount 694 998 2,067 3,011

Amortization of issuance costs 338 414 1,009 1,238

Effect of interest rate contracts, net 617 516 1,833 1,533

Total interest cost recognized $ 45,431 $ 51,415 $ 136,255 $ 154,355

NOTE 12 — LEASES

5 unchanged sentences

Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation.

Lam Research Corporation 2023 Q1 10-Q 15

The Company has finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”).

The Company is required to maintain cash collateral in an aggregate of approximately $ 250.0 million in separate interest-bearing accounts as security for the Company’s obligations.

These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of March 27, 2022.

These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of September 25, 2022.

During the seven-year term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed.

6 unchanged sentences

The Company has entered into insurance contracts that are intended to limit its exposure to such indemnifications.

As of March 27, 2022, the Company had not recorded any liability on its Condensed Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees.

As of September 25, 2022, the Company had not recorded any liability on its Condensed Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees.

Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services.

2 unchanged sentences

The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business.

As of March 27, 2022, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $ 93.5 million.

The Company does not

believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid.

As of September 25, 2022, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $ 97.4 million.

The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid.

In addition, the Company has entered into indemnification agreements with its directors, officers, and certain other employees, consistent with its Bylaws and Certificate of Incorporation;

4 unchanged sentences

The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements.

As of March 27, 2022, warranty reserves totaling $ 18.8 million were recognized in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets.

As of September 25, 2022, warranty reserves totaling $ 26.4 million were recognized in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets.

Changes in the Company’s product warranty reserves were as follows:

Three Months Ended Nine Months Ended

2022 March 28,

2021 March 27,

2022 March 28,

Three Months Ended

September 25,

2022 September 26,

(in thousands)

2 unchanged sentences

Settlements made during the period ( 64,896 ) ( 60,292 )

Changes in liability for warranties issued during the period ( 1,269 ) —

Changes in liability for pre-existing warranties 5,208 12,106

Balance at end of period $ 283,514 $ 214,244

Lam Research Corporation 2023 Q1 10-Q 16

Legal Proceedings

4 unchanged sentences

NOTE 14 — STOCK REPURCHASE PROGRAM

In November 2020, the Board of Directors authorized the Company to repurchase up to an additional $ 5.0 billion of Common Stock;

In May 2022, the Board of Directors authorized the Company to repurchase up to an additional $ 5.0 billion of Common Stock;

this authorization supplements the remaining balances from any prior authorizations.

10 unchanged sentences

Quarter ended September 25, 2022 675 (2) $ 104,982 $ 432.74 $ 5,409,654

Quarter ended December 26, 2021 677 $ 429,983 $ 634.74 $ 2,582,493

Quarter ended March 27, 2022 2,007 $ 1,200,206 $ 609.61 $ 1,382,287

(1) Average price paid per share excludes the effect of accelerated share repurchase activities.

See additional disclosure below regarding the Company’s accelerated share repurchase activity during the nine months ended March 27, 2022.

In addition to the shares repurchased under the Board-authorized repurchase program shown above, during the three and nine months ended March 27, 2022, the Company acquired 224 thousand shares at a total cost of $ 122.3 million and 244 thousand shares at a total cost of $ 134.3 million, respectively, which the Company withheld through net settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plans.

See additional disclosure below regarding the Company’s accelerated share repurchase activity during the three months ended September 25, 2022.

(2) Includes shares received at final settlement of accelerated share repurchase agreements;

see additional disclosures below regarding the Company’s accelerated share repurchase activity during the three months ended September 25, 2022.

In addition to the shares repurchased under the Board-authorized repurchase program shown above, during the three months ended September 25, 2022, the Company acquired 11 thousand shares at a total cost of $ 4.8 million, which the Company withheld through net settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plans.

The shares retained by the Company through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under the Company’s equity compensation plan.

Accelerated Share Repurchase Agreements

On February 15, 2022, the Company entered into an accelerated share repurchase agreement (the “February 2022 ASR") with two financial institutions to repurchase a total of $ 600 million of Common Stock.

The Company took an initial delivery of approximately 758 thousand shares, which represented 75 % of the prepayment amount divided by the Company’s closing stock price on February 15, 2022.

The total number of shares received under the February 2022 ASR will be based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount.

The February 2022 ASR settled with one of the financial institutions in April 2022, resulting in the receipt of approximately 216 thousand additional shares.

Final settlement of the February 2022 ASR will occur no later than June 16, 2022.

On August 31, 2021, the Company entered into an accelerated share repurchase agreement (the “August 2021 ASR") with two financial institutions to repurchase a total of $ 650 million of Common Stock.

The Company took an initial delivery of approximately 806 thousand shares, which represented 75 % of the prepayment amount divided by the Company’s closing stock price on August 31, 2021.

The total number of shares received under the August 2021 ASR was based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount.

Final settlement of the August 2021 ASR occurred in January 2022, resulting in the receipt of approximately 265 thousand additional shares, which yielded a weighted-average share price of $ 606.71 for the transaction period.

On June 2, 2022, the Company entered into an accelerated share repurchase agreement (the "June 2022 ASR") with two financial institutions to repurchase a total of $ 500 million of Common Stock.

The Company took an initial delivery of approximately 717 thousand shares, which represented 75 % of the prepayment amount divided by our closing stock price on June 2, 2022.

The total number of shares received under the June 2022 ASR was based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount.

Final settlement of the June 2022 ASR occurred in September 2022, resulting in the receipt of approximately 433 thousand additional shares, which yielded a weighted-average share price of $ 435.20 for the transaction period.

Lam Research Corporation 2023 Q1 10-Q 17

NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss, net of tax at March 27, 2022, as well as the activity for the nine months ending March 27, 2022, were as follows:

The components of accumulated other comprehensive loss, net of tax at September 25, 2022, as well as the activity for the three months ending September 25, 2022, were as follows:

Accumulated Foreign Currency Translation Adjustment Accumulated

7 unchanged sentences

Other comprehensive (loss) income before reclassifications ( 33,609 ) 18,803 80 293 ( 14,433 )

(Gains) losses reclassified from accumulated other comprehensive loss to net income (1)

Gains reclassified from accumulated other comprehensive loss to net income (1)

( 53 ) — ( 9,350 )

Net current-period other comprehensive loss ( 33,609 ) 9,506 27 293 ( 23,783 )

Balance at March 27, 2022 $ ( 60,223 ) $ ( 15,037 ) $ ( 1,456 ) $ ( 20,950 ) $ ( 97,666 )

Balance at September 25, 2022 $ ( 115,364 ) $ ( 2,824 ) $ ( 1,610 ) $ ( 13,967 ) $ ( 133,765 )

(1) Amount of after-tax gains reclassified from AOCI into net income is not material in the aggregate, or to any individual location in our Condensed Consolidated Statements of Operations.

Lam Research Corporation 2023 Q1 10-Q 18

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements