What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2023-08-15 compared with 2022-08-24 · 190 added, 133 removed, 1161 unchanged (22% of the section changed)

17 unchanged sentences

Cost of goods sold 9,573,425 9,355,232 7,820,844

Restructuring charges, net - cost of goods sold 78,166 — —

Total cost of goods sold 9,651,591 9,355,232 7,820,844

Gross margin 7,776,925 7,871,807 6,805,306

1 unchanged sentence

Selling, general, and administrative 832,753 885,737 829,875

Restructuring charges, net - operating expenses 42,150 — —

Total operating expenses 2,602,065 2,489,985 2,323,283

21 unchanged sentences

Cash flow hedges:

Net unrealized gains (losses) during the period 30,849 22,139 ( 30,603 )

Net (gains) losses reclassified into net income ( 29,054 ) ( 3,468 ) 2,137

Net unrealized gains during the period 10,413 30,849 22,139

Net gains reclassified into net income ( 9,411 ) ( 29,054 ) ( 3,468 )

1,002 1,795 18,671

Available-for-sale investments:

Net unrealized (losses) gains during the period ( 4,638 ) ( 4,098 ) 1,842

Net losses reclassified into net income 1,390 786 935

Net unrealized gains (losses) during the period 1,491 ( 4,638 ) ( 4,098 )

Net (gains) losses reclassified into net income ( 158 ) 1,390 786

1,333 ( 3,248 ) ( 3,312 )

69 unchanged sentences

Capital expenditures and intangible assets ( 501,568 ) ( 546,034 ) ( 349,096 )

Business acquisitions, net of cash acquired ( 119,955 ) — —

Purchases of available-for-sale securities — ( 567,819 ) ( 3,389,388 )

2 unchanged sentences

Other, net ( 11,171 ) ( 7,575 ) ( 42,155 )

Net cash provided by (used for) investing activities 612,275 73,271 ( 244,084 )

Net cash (used for) provided by investing activities ( 534,562 ) 612,275 73,271

Lam Research Corporation 2023 10-K 42

3 unchanged sentences

Principal payments on long-term debt and finance lease obligations and payments for debt issuance costs $ ( 23,206 ) $ ( 11,889 ) $ ( 862,060 )

Net proceeds from issuance of long-term debt — — 1,974,651

Proceeds from borrowings on revolving credit facility — — 1,250,000

Repayment of borrowings on revolving credit facility — — ( 1,250,000 )

Treasury stock purchases ( 2,017,012 ) ( 3,865,663 ) ( 2,697,704 )

5 unchanged sentences

Effect of exchange rate changes on cash, cash equivalents and restricted cash 128 ( 30,227 ) 7,215

Net (decrease) increase in cash, cash equivalents and restricted cash ( 897,215 ) ( 498,333 ) 1,255,687

Net increase (decrease) in cash, cash equivalents and restricted cash 1,813,837 ( 897,215 ) ( 498,333 )

Cash, cash equivalents and restricted cash at beginning of year 3,773,535 4,670,750 5,169,083

1 unchanged sentence

Schedule of non-cash transactions

Accrued payables for stock repurchases $ 46 $ 20,005 $ 82

Accrued payables for stock repurchases, including applicable excise tax $ 45,486 $ 46 $ 20,005

Accrued payables for capital expenditures 31,899 80,296 61,392

31 unchanged sentences

Net income — — — — — 3,908,458 3,908,458

Other comprehensive loss — — — — ( 30,181 ) ( 30,181 )

Other comprehensive income — — — — 30,083 30,083

Cash dividends declared ($ 5.20 per common share)

5 unchanged sentences

Equity-based compensation expense — — 259,064 — — — 259,064

Effect of conversion of convertible notes 1,416 2 24,869 — — — 24,871

Reclassification from temporary to permanent equity — — 10,995 — — — 10,995

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

Net income — — — — — 4,605,286 4,605,286

Other comprehensive income — — — — 30,083 — 30,083

Other comprehensive loss — — — — ( 45,854 ) — ( 45,854 )

Cash dividends declared ($ 6.00 per common share)

6 unchanged sentences

Net income — — — — — 4,510,931 4,510,931

Other comprehensive loss — — — — ( 45,854 ) — ( 45,854 )

Other comprehensive income — — — — 9,276 — 9,276

Cash dividends declared ($ 6.90 per common share)

19 unchanged sentences

For these and other reasons, the Company’s results of operations for fiscal years 2023, 2022, and 2021 may not necessarily be indicative of future operating results.

Reclassification:

Certain amounts for the fiscal year 2021 footnotes have been reclassified to conform to the fiscal year 2022 presentation.

Summary of Significant Accounting Policies

21 unchanged sentences

Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less.

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Inventory Valuation:

1 unchanged sentence

Finished goods are reported as inventories until the point of title transfer to the customer.

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Unless specified in the terms of sale, title generally transfers at the physical transfer of the products to the freight carriers.

42 unchanged sentences

The goodwill assigned to a reporting unit is the difference between the acquisition consideration assigned to the reporting unit on a relative fair value basis and the fair value of acquired assets and liabilities that can be specifically attributed to the reporting unit.

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The Company reviews goodwill at least annually for impairment during the fourth quarter of each fiscal year and if certain events or indicators of impairment occur between annual impairment tests.

The process of evaluating the potential impairment of goodwill requires significant judgment.

When reviewing goodwill for impairment, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value.

When reviewing goodwill for impairment, the Company first performs a qualitative assessment to

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determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value.

In performing a qualitative assessment, it considers business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units.

36 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 years ended June 26, 2022 and June 27, 2021.

No other-than-temporary impairment charges were recognized during the year ended June 28, 2020.

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No such losses were recognized through the income statement during the years ended June 25, 2023, June 26, 2022 and June 27, 2021.

Allowance for Expected Credit Losses:

2 unchanged sentences

In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance against the amount due to reduce the net recognized receivable to the amount it reasonably believes will be collected.

The Company also provides allowances based on its write-off history.

The Company also

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provides allowances based on its write-off history.

Bad debt expense was not material for fiscal years ended June 25, 2023, June 26, 2022, and June 27, 2021.

39 unchanged sentences

dollar is the functional currency.

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Recent Accounting Pronouncements

Recently Adopted or Effective

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

Updates Not Yet Effective

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

In March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another

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reference rate expected to be discontinued.

In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform.

In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848,” extending the relief offered in this series of ASUs through December 31, 2024.

In October 2021, the FASB issued ASU No.

2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers” as if the acquirer had originated the contracts.

The guidance is applied prospectively to acquisitions occurring on or after the effective date.

The Company early adopted ASU No.

2021-08 during the quarter ended December 25, 2022.

The adoption of the new standard did not have a material impact on the Company’s Consolidated Financial Statements.

In November 2021, the FASB issued ASU 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 does not expect adoption of this standard to have a material impact on its Consolidated Financial Statements.

In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair values;

it also requires additional disclosures, including the nature and remaining duration of such restrictions.

The guidance is effective for financial statements issued for annual periods beginning after December 15, 2023, with early adoption permitted.

The Company is required to adopt this standard prospectively in the first quarter of fiscal year 2025 for the annual reporting period ending June 29, 2025.

The Company does not expect adoption of this standard to have a material impact on its Consolidated Financial Statements .

The Company prospectively adopted ASU 2021-10 in the fiscal year ended June 25, 2023.

The adoption of the new standard did not have a material impact on the Company’s Consolidated Financial Statements.

Refer to Note 17:

Commitments and Contingencies for additional information regarding the Company’s government assistance.

In December 2022, the Company executed Amendment No.

1 To Second Amended and Restated Credit Agreement, the primary purpose of which was to change the reference rate for borrowings under the Credit Agreement by replacing LIBOR with the Secured Overnight Financing Rate (“SOFR”).

The Company applied practical expedients provided in Topic 848 allowing for the changes in contractual terms to be accounted for prospectively.

These modifications had no significant impact on the Company’s Consolidated Financial Statements.

Refer to Note 14:

Long-term Debt and Other Borrowings for further information regarding the terms of the Credit Agreement.

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 Consolidated Financial Statements.

Deferred Revenue

Revenue of $ 908.7 million included in deferred profit at June 27, 2021 was recognized during fiscal year 2022.

Revenue of $ 1,984.6 million included in deferred profit at June 26, 2022 was recognized during fiscal year 2023, representing the majority of the $ 2,198.1 million of deferred revenue as of June 26, 2022.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of June 25, 2023 and when the Company expects to recognize the amounts as revenue:

11 unchanged sentences

$ 17,428,516 $ 17,227,039 $ 14,626,150

System revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.

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Systems revenue includes sales of new leading-edge equipment in deposition, etch and clean markets.

Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from the Company’s Reliant product line.

1 unchanged sentence

manufacturing and servicing of wafer processing semiconductor manufacturing equipment.

Refer to Note 20 - Segment, Geographic Information, and Major Customers ;

for additional information

Lam Research Corporation 2022 10-K 49

regarding the Company’s evaluation of reportable business segments and the disaggregation of revenue by the geographic regions in which the Company operates.

Refer to Note 20:

Segment, Geographic Information, and Major Customers ;

for additional information regarding the Company’s evaluation of reportable business segments and the disaggregation of revenue by the geographic regions in which the Company operates.

Additionally, the Company serves three primary markets:

24 unchanged sentences

During the fiscal years 2023, 2022, and 2021, the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”).

Service-based RSUs typically vest over a period of 3 years or less.

Service-based RSUs typically vest annually over a period of 3 years or less.

Market-based PRSUs generally vest three years from the grant date if certain performance criteria are achieved and require continued employment.

1 unchanged sentence

The designated benchmark index was the Philadelphia Semiconductor Total Return Index (“XSOX”).

The stock price performance or market price performance is measured using the closing price for the 50 -trading days prior to the dates the performance period begins and ends.

The stock price performance or market price performance is measured using the average closing price for the 50 -trading days prior to the dates the performance period begins and ends.

The target number of shares represented by the market-based PRSUs is increased by 2 % of target for each 1 % that Common Stock price performance exceeds the market price performance of the designated benchmark index.

25 unchanged sentences

During fiscal year 2023, approximately 315.8 thousand shares of the Company’s Common Stock were sold to employees under the ESPP.

At June 26, 2022, approximately 5.7 million shares were available for purchase, and the Company had $ 32.3 million of total unrecognized compensation cost, which is expected to be recognized over a remaining period of less than one year .

At June 25, 2023, approximately 5.4 million shares were available for purchase, and the Company had $ 8.9 million of total unrecognized compensation cost, which is expected to be recognized over a remaining period of less than six months .

Other Income (Expense), Net

5 unchanged sentences

Interest expense ( 186,462 ) ( 184,759 ) ( 208,597 )

(Losses) gains on deferred compensation plan related assets, net ( 38,053 ) 61,838 5,999

Gains (losses) on deferred compensation plan related assets, net 20,186 ( 38,053 ) 61,838

Foreign exchange (losses) gains, net ( 7,078 ) ( 723 ) ( 6,962 )

1 unchanged sentence

$ ( 65,650 ) $ ( 188,708 ) $ ( 111,219 )

Interest income in the year ended June 26, 2022, decreased compared to the year ended June 27, 2021, primarily as a result of lower cash balances.

Interest income decreased in the year ended June 27, 2021, compared to the year ended June 28, 2020, as a result of lower yield.

Interest income in the year ended June 25, 2023, increased compared to the year ended June 26, 2022, primarily as a result of higher yields and higher cash balances.

Interest income decreased in the year ended June 26, 2022, compared to the year ended June 27, 2021, as a result of lower cash balances.

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Interest expense in the year ended June 26, 2022, decreased compared to the year ended June 27, 2021, primarily due to the payoff of $ 800 million of senior notes in June 2021.

The increase in interest expense in the year ended June 27, 2021, compared to the year ended June 28, 2020, primarily due to the full year impact of the issuance of the $ 2.0 billion senior notes in fiscal year 2020.

Interest expense in the year ended June 25, 2023, was flat compared to the year ended June 26, 2022.

The decrease in interest expense in the year ended June 26, 2022, compared to the year ended June 27, 2021, was primarily due to the payoff of $ 800 million of senior notes in June 2021.

The gains or losses on deferred compensation plan related assets, net in fiscal years 2023, 2022 and 2021 were driven by fluctuations in the fair market value of the underlying funds.

The variation in other, net for the year ended June 26, 2022 compared to the years ended June 27, 2021 and June 28, 2020 were primarily driven by fluctuations in the fair market value of equity investments.

The variations in other, net for the year ended June 25, 2023 compared to the years ended June 26, 2022 and June 27, 2021 were primarily driven by fluctuations in the fair market value of equity investments.

The components of income before income taxes were as follows:

30 unchanged sentences

Outside basis differences of foreign subsidiaries 527,139 421,056

R&D capitalization 36,618 —

Operating lease liabilities 50,867 50,294

6 unchanged sentences

Deferred tax liabilities:

Intangible assets — ( 3,113 )

Capital assets ( 121,948 ) ( 114,644 )

5 unchanged sentences

Net deferred tax assets $ 712,349 $ 560,697

The change in gross deferred tax assets, gross deferred tax liabilities, and valuation allowance between fiscal year 2022 and 2021 is primarily due to increases in gross deferred tax assets for outside basis differences of foreign subsidiaries and tax credits, and increases in gross deferred tax liabilities for capital assets.

The Company previously made an accounting policy election to record deferred taxes related to Global Intangible Low-Taxed Income (“GILTI”).

The change in gross deferred tax assets, gross deferred tax liabilities, and valuation allowance between fiscal year 2023 and 2022 is primarily due to increases in gross deferred tax assets for outside basis differences of foreign subsidiaries, tax credits, and capitalized research and experimental expenditures.

The Company has an accounting policy election to record deferred taxes related to Global Intangible Low-Taxed Income (“GILTI”).

Realization of the Company’s net deferred tax assets is based upon the weighting of available evidence, including such factors as the recent earnings history and expected future taxable income.

The Company believes it is more likely than not that such deferred tax assets will be realized with the exception of $ 308.7 million related to California deferred tax assets.

The Company believes it is more likely than not that such deferred tax assets will be realized with the exception of $ 352.4 million primarily related to California deferred tax assets.

At June 25, 2023, the Company continued to record a valuation allowance to offset the entire California deferred tax asset balance due to the single sales factor apportionment resulting in lower taxable income in California.

3 unchanged sentences

If not utilized, these losses will begin to expire in fiscal year 2024, and are subject to limitation on their utilization.

At June 25, 2023, the Company had foreign net operating loss carryforwards of $ 19.6 million.

All of these losses can be carried forward indefinitely, and are subject to limitation on their utilization.

At June 25, 2023, the Company had state tax credit carryforwards of $ 530.3 million.

20 unchanged sentences

The benefit of the tax incentive on diluted earnings per share was approximately $ 4.24 in fiscal year 2023.

Earnings of the Company’s foreign subsidiaries included in consolidated retained earnings that are indefinitely reinvested in foreign operations aggregated to approximately $ 894.8 million at June 26, 2022.

If these earnings were remitted to the United States, they would be subject to foreign withholding taxes of approximately $ 171.1 million at the current statutory rates.

The potential tax expense associated with these foreign withholding taxes would be offset by $ 136.9 million of foreign tax credits that would be generated in the United States upon remittance.

On August 16, 2022, the Inflation Reduction Act was signed into law.

On August 16, 2022, the IRA was signed into law.

In general, the provisions of the IRA will be effective beginning with the Company’s fiscal year 2024, with certain exceptions.

The IRA includes a new 15% corporate minimum tax.

The Company is in the process of evaluating the potential impacts of the IRA.

The impact on income taxes due to changes in legislation is required under the authoritative guidance of ASC 740, Income Taxes, to be recognized in the period in which the law is enacted.

While the Company does not currently expect the IRA to have a material impact on our effective tax rate, our analysis is ongoing and incomplete, and it is possible that the IRA could have a material adverse effect on the Company’s tax liability.

The Company will continue to monitor issuance of additional guidance.

The Company has evaluated the potential impacts of the IRA and does not expect it to have a material impact on the effective tax rate.

However, the Company expects future guidance from the Treasury Department and will further analyze when the guidance is issued.

The Company’s gross uncertain tax positions were $ 640.2 million, $ 617.4 million, and $ 566.8 million as of June 25, 2023, June 26, 2022, and June 27, 2021, respectively.

31 unchanged sentences

As of June 25, 2023, tax years 2005-2023 remain subject to examination in the jurisdictions where the Company operates.

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

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 June 26, 2022, the IRS has proposed adjustments resulting in a tax liability increase of approximately $ 50.0 million.

If the Company agrees to the proposed adjustments, cash settlements with respect to the increased liabilities will be made accordingly.

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 IRS is examining the Company’s U.S.

federal income tax returns for the fiscal years ended June 30, 2019, and June 28, 2020.

To date, 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.

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.

It is reasonably possible that over the next 12-month period the Company may experience an increase or decrease in its uncertain tax positions as a result of tax examinations or lapses of statutes of limitation.

The change in uncertain tax positions may range up to $ 20.0 million.

The change in uncertain tax positions as a result of lapses of statutes of limitation may range up to $ 9.2 million.

Lam Research Corporation 2023 10-K 55

15 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, were not material for fiscal years ended June 26, 2022, June 27, 2021, and June 28, 2020.

The impact from potentially dilutive securities, including options and RSUs, was not material for fiscal years ended June 25, 2023, June 26, 2022, and June 27, 2021.

Financial Instruments

5 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 less 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 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.

6 unchanged sentences

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

Refer to Note 14:

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

Lam Research Corporation 2023 10-K 56

33 unchanged sentences

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 — —

7 unchanged sentences

Management assesses the fair value of investments in debt securities that are not actively traded through consideration of interest rates and their impact on the present value of the cash flows to be received from the investments.

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The Company evaluates its investments with fair value less than amortized cost by first considering whether the Company has the intent to sell the security or whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis.

4 unchanged sentences

No such losses were recognized through the income statement during the twelve months ended June 25, 2023, and June 26, 2022.

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Gross realized gains/(losses) from sales of investments were insignificant in the fiscal years 2023, 2022, and 2021.

36 unchanged sentences

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.

During the year

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ended June 28, 2020, the company recognized a net loss of $ 31.5 million of accumulated other comprehensive income, net of tax, related to interest rate swap agreements.

No such activity occurred during the years ended June 26, 2022 or June 27, 2021.

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

2 unchanged sentences

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.

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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.

31 unchanged sentences

As of June 25, 2023 and June 26, 2022, the fair value of outstanding balance sheet hedges was not material.

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The following table provides the total notional value of balance sheet hedge instruments outstanding as of June 25, 2023:

3 unchanged sentences

Sell Contracts 166,723

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

1 unchanged sentence

Derivatives Not Designated as Hedging Instruments:

Location of Gain

in Income Gain

Location of (Loss) Gain

in Income (Loss)

in Income Gain

12 unchanged sentences

In general, the Company does not require collateral on sales.

As of June 26, 2022, two customers accounted for approximately 20 % and 14 % of accounts receivable, respectively.

As of June 25, 2023, three customers accounted for approximately 32 %, 13 % and 10 % of accounts receivable, respectively.

As of June 26, 2022, two customers accounted for approximately 20 %, and 14 % of accounts receivable, respectively.

1 unchanged sentence

The Company’s balance and transactional activity for its allowance for doubtful accounts is not material as of and for the twelve months ended June 25, 2023, June 26, 2022, and June 27, 2021.

Refer to Note 20 - Segment, Geographic Information, and Major Customers for additional information regarding customer concentrations.

Refer to Note 20:

Segment, Geographic Information, and Major Customers for additional information regarding customer concentrations.

Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value.

15 unchanged sentences

Computer and computer-related equipment 174,084 177,198

Office equipment, furniture and fixtures 70,642 95,259

Land 98,739 84,733

Office equipment, furniture and fixtures 83,108 70,642

3,445,407 3,045,759

2 unchanged sentences

The Company has excluded $ 53.7 million, and $ 42.2 million of finance right-of-use assets recorded within property and equipment, net from the table above for the years ended June 25, 2023 and June 26, 2022, respectively.

See Note 15 - Leases for additional information regarding these finance lease right-of-use assets.

Leases for additional information regarding these finance lease right-of-use assets.

Depreciation expense, excluding amortization of finance lease right of use assets, during fiscal years 2023, 2022, and 2021 was $ 282.8 million, $ 248.2 million, and $ 229.8 million, respectively.

Goodwill and Intangible Assets

The balance of goodwill was $ 1.5 billion as of June 26, 2022 and June 27, 2021.

The balance of goodwill was $ 1.6 billion and $ 1.5 billion as of June 25, 2023 and June 26, 2022, respectively.

As of June 25, 2023 and June 26, 2022, $ 65.4 million and $ 62.0 million, respectively, of the goodwill balance is tax deductible, and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

No goodwill impairments were recognized in fiscal years 2023, 2022, or 2021.

Refer t o Note 21 :

Business Combina tion s for additional information regarding the Company’s goodwill balance.

Intangible Assets

8 unchanged sentences

Patents and other intangible assets 199,532 ( 116,659 ) 82,873 167,821 ( 84,493 ) 83,328

Intangible assets subject to amortization 1,561,001 ( 1,422,628 ) 138,373 1,477,997 ( 1,376,147 ) 101,850

In process research and development 30,081 — 30,081 — — —

Total intangible assets $ 1,591,082 $ ( 1,422,628 ) $ 168,454 $ 1,477,997 $ ( 1,376,147 ) $ 101,850

1 unchanged sentence

No intangible asset impairments were recognized in fiscal years 2023, 2022, or 2021.

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The estimated future amortization expense of intangible assets as of June 25, 2023, is reflected in the table below.

4 unchanged sentences

Thereafter 10,678

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Refer t o Note 21:

Business Combinations for additional information regarding the Company’s intangible assets.

Accrued Expenses and Other Current Liabilities

6 unchanged sentences

Dividend payable 231,267 205,615

Restructuring 8,014 —

Other 572,591 589,738

19 unchanged sentences

500,000 3.18 % 500,000 3.18 %

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

Total Senior Notes outstanding, at par 5,000,000 5,000,000

Unamortized discount ( 32,934 ) ( 35,549 )

1 unchanged sentence

Unamortized bond issuance costs ( 6,189 ) ( 6,827 )

Other financing arrangements 1,438 —

Total debt outstanding, at carrying value $ 4,965,365 $ 4,962,459

Current portion of long-term debt $ 421 $ —

Long-term debt $ 4,964,944 $ 4,962,459

(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.

Lam Research Corporation 2023 10-K 62

The Company’s contractual cash obligations relating to its outstanding debt as of June 25, 2023, were as follows:

11 unchanged sentences

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.

Lam Research Corporation 2022 10-K 62

2029 (the “2029 Notes”), and $ 750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2049 (the “2049 Notes”).

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.

16 unchanged sentences

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.

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”), June 17, 2021 (the “Second Amended and Restated Credit Agreement”), and December 7, 2022 (“Amendment No.1 to Second Amended and Restated Credit Agreement”).

Lam Research Corporation 2023 10-K 63

$ 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 London Interbank Offered Rate (“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.

The Amendment No.1 To Second Amended and Restated Credit Agreement replaces the benchmark reference rate, LIBOR, with term SOFR equal to the term rate determined by the Chicago Mercantile Exchange term SOFR administrator plus 0.10 % (“adjusted term SOFR”), with no change to the amount or timing of contractual cash flows.

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) adjusted term SOFR plus 1.0 %, plus a spread of 0.00 % to 0.30 %, or (2) adjusted term SOFR, 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 Amendment No.

1 to 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 are 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 June 25, 2023, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants.

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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

Lam Research Corporation 2022 10-K 63

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

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

22 unchanged sentences

Variable lease cost 227,726 259,041 219,040

Lam Research Corporation 2023 10-K 64

Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation.

12 unchanged sentences

Finance leases 20,161 13,868 29,497

Lam Research Corporation 2022 10-K 64

Supplemental balance sheet information related to leases were as follows as of June 26, 2022 and June 27, 2021:

Supplemental balance sheet information related to leases was as follows as of June 25, 2023 and June 26, 2022:

2023 June 26,

15 unchanged sentences

Finance leases 5.2 2.56 % 6.4 2.01 %

Lam Research Corporation 2023 10-K 65

As of June 25, 2023, the maturities of lease liabilities are as follows:

11 unchanged sentences

Selected Leases and Related Guarantees

The Company leases the majority of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases.

The Company leases the some of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases.

Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters;

4 unchanged sentences

The Company is required to maintain cash collateral in an aggregate of approximately $ 250 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 Consolidated Balance Sheet as of June 26, 2022 and June 27, 2021.

Lam Research Corporation 2022 10-K 65

These amounts are recorded with other restricted cash and investments in the Company’s Consolidated Balance Sheets as of June 25, 2023 and June 26, 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.

1 unchanged sentence

The aggregate maximum guarantee made by the Company under the California Facility Leases is $ 298.4 million.

During the fiscal year ended June 25, 2023, the Company recognized an immaterial liability associated with one of the leased properties in other long-term liabilities in its Consolidated Balances Sheets, as a result of an annual assessment of potential liability under the residual value guarantee arrangements.

Retirement and Deferred Compensation Plans

18 unchanged sentences

The benefit obligation was $ 33.2 million and $ 31.2 million as of June 25, 2023, and June 26, 2022, respectively.

Lam Research Corporation 2023 10-K 66

Commitments and Contingencies

4 unchanged sentences

The Company’s commitments relating to off-balance sheet agreements are included in the tables below.

These amounts exclude $ 561.2 million of liabilities related to uncertain tax positions (see Note 7 - Income Taxes for further discussion) as of the end of the fiscal year because the Company is unable to reasonably estimate the ultimate amount or time of settlement.

These amounts exclude $ 582.8 million of liabilities related to uncertain tax positions (see Note 7:

Income Taxes for further discussion) as of the end of the fiscal year because the Company is unable to reasonably estimate the ultimate amount or time of settlement.

Other Guarantees

10 unchanged sentences

and under local law, the Company may be required to provide indemnification to its employees for actions within the scope of their employment.

Although the Company maintains insurance contracts that cover some of the potential liability associated with these indemnification agreements, there is no guarantee that all

Lam Research Corporation 2022 10-K 66

such liabilities will be covered.

Although the Company maintains insurance contracts that cover some of the potential liability associated with these indemnification agreements, there is no guarantee that all such liabilities will be covered.

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 under such indemnification agreements or statutory obligations.

11 unchanged sentences

Transition Tax Liability

On December 22, 2017, the “Tax Cuts & Jobs Act” was signed into law, among other items, this U.S.

On December 22, 2017, the “Tax Cuts & Jobs Act” was signed into law.

Among other items, this U.S.

tax reform assessed a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred.

As a result, the Company recognized a total transition tax of $ 868.4 million and elected to pay the one-time tax over a period of 8 years, commencing in the twelve months ended June 30, 2019.

As of September 25, 2022, this one-time tax was adjusted, resulting in a total tax liability increase of approximately $ 50.0 million, which was spread over the same 8-year period (see Note 7:

Income Taxes for further discussion).

Lam Research Corporation 2023 10-K 67

The Company’s remaining obligation related to this arrangement as of June 25, 2023, were as follows:

8 unchanged sentences

As of June 25, 2023, warranty reserves totaling $ 29.9 million were recognized in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets.

Lam Research Corporation 2022 10-K 67

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

7 unchanged sentences

Balance at end of period $ 286,663 $ 256,258

Government Assistance

In the fiscal year ended June 25, 2023, the Company received government assistance from various domestic and international governments in the form of cash grants or refundable tax credits (collectively “Grant” or “Grants”).

The Grants typically specify conditions that must be met in order for the Grants to be earned, such as employment or employee retention targets;

completion of employee training;

or the construction or acquisition of property and equipment and are often time-bound.

If conditions are not satisfied or if the duration period for the arrangement is not met, the Grants are often subject to reduction, repayment, or termination.

The Company’s policy is to recognize a benefit in the Consolidated Statement of Operations, as a reduction to the expense the individual Grant is designed to compensate for, over the duration of the program when the Company has reasonable assurance that it will comply with the conditions under the Grant and that the Grant will be received.

Grants related to investments in property and equipment are recognized as a reduction to the cost basis of the underlying assets with an ongoing reduction to depreciation expense over the assets estimated useful life.

During the fiscal year ended June 25, 2023, the Company received an insignificant amount related to Grants.

To the extent amounts have been received by the Company in advance of completion of the conditions, they have been recognized in accrued expense and other liabilities, or other long-term liabilities in the Consolidated Balance Sheets, as appropriate.

Legal Proceedings

3 unchanged sentences

Based on current information, the Company does not believe that a material loss from known matters is probable and therefore has not recorded an accrual of any material amount for litigation or other contingencies related to existing legal proceedings.

Lam Research Corporation 2023 10-K 68

Stock Repurchase Program

6 unchanged sentences

Repurchased Total

Repurchase Average

Repurchase (3)

Per Share (1,3)

6 unchanged sentences

Quarter ended March 26, 2023 1,017 $ 483,418 $ 475.18 $ 4,443,010

Board authorization, $ 5 billion increase, May 2022

Quarter ended June 25, 2023 1,616 $ 905,793 $ 560.43 $ 3,537,217

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

(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 fiscal year.

1 unchanged sentence

see additional disclosures below regarding the Company’s accelerated share repurchase activity during the fiscal year.

(3) As of January 1, 2023, the Company’s net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act.

Excise tax incurred reduces the amount available under the repurchase program, as applicable, and is included in the cost of shares repurchased in the Consolidated Statement of Stockholders’ Equity and the calculation of the average price paid per share.

In addition to the shares repurchased under the Board-authorized repurchase program shown above, the Company acquired 176 thousand shares at a total cost of $ 85.4 million during the 12 months ended June 25, 2023, 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.

3 unchanged sentences

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 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.

Final settlement of the June 2022 ASR will between August 18, 2022 and November 4, 2022.

Lam Research Corporation 2022 10-K 68

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 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 February 2022 ASR occurred in May 2022, resulting in the receipt of approximately 438 thousand additional shares, which yielded a weighted-average share price of $ 502.06 for the transaction period.

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.

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.

Comprehensive Income (Loss)

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Balance as of June 26, 2022 $ ( 81,755 ) $ ( 12,330 ) $ ( 1,637 ) $ ( 14,260 ) $ ( 109,982 )

Other comprehensive (loss) income before reclassifications ( 50,342 ) 30,849 ( 4,638 ) 5,941 ( 18,190 )

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

Other comprehensive income before reclassifications 6,858 10,413 1,491 83 18,845

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

— ( 9,411 ) ( 158 ) — ( 9,569 )

2 unchanged sentences

(1) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income is not material individually or in the aggregate, or to any individual location in our Consolidated Statement of Operations.

Lam Research Corporation 2023 10-K 69

Tax related to other comprehensive income, and the components thereto, for the years ended June 25, 2023, June 26, 2022, and June 27, 2021 was not material.

8 unchanged sentences

are attributed to the geographic locations in which the assets are located.

Lam Research Corporation 2022 10-K 69

Revenues and long-lived assets by geographic region were as follows:

6 unchanged sentences

Japan 1,758,364 1,624,573 1,363,907

Southeast Asia 1,357,648 945,478 587,638

United States 1,665,136 1,147,346 672,716

Southeast Asia 1,354,471 1,357,648 945,478

Europe 1,158,278 712,021 463,479

9 unchanged sentences

Taiwan 65,432 72,845 47,279

Japan 8,406 13,149 11,826

China 8,865 7,214 9,301

Japan 8,452 8,406 13,149

$ 2,099,328 $ 1,874,235 $ 1,477,263

In fiscal year 2023, two customers accounted for approximately 22 % and 16 % of total revenues, respectively.

In fiscal year 2022, four customers accounted for approximately 21 %, 12 %, 12 %, and 11 % of total revenues, respectively.

In fiscal year 2021, three customers accounted for approximately 25 %, 12 %, and 10 % of total revenues, respectively.

In fiscal year 2020, four customers accounted for approximately 24 %, 14 %, 10 %, and 10 %, of total revenues, respectively.

No other customers accounted for more than 10% of total revenues.

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Business Combinations

In November 2022, the Company completed two business combination transactions acquiring the outstanding shares of two separate private companies in cash transactions collectively valued at $ 153.8 million as of the respective purchase dates.

The Company’s preliminary assessment of acquisition date fair value of the assets acquired and liabilities assumed resulted in the recognition of $ 102.2 million of goodwill and $ 81.2 million of intangible assets;

all other assets acquired and all liabilities assumed were immaterial .

The preliminary fair value of net tangible liabilities assumed and intangible assets acquired was based on preliminary valuations, estimates, and assumptions which are subject to change within the measurement period (up to one year from the acquisition date).

The Company expensed all associated costs, as incurred, in selling, general, and administrative expense in the Consolidated Statement of Operations for the year ended June 25, 2023.

The following table is a summary of the preliminary fair value estimates of the identifiable intangible assets and their useful lives:

Weighted-Average Useful Life Estimated Purchase Date Fair Value

(in thousands)

Existing technology 7 years

Customer relationships 8 years

In process research and development Indefinite 30,081

Restructuring Charges, Net

The Company records employee severance and separation costs that meet the requirements for recognition in accordance with the relevant guidance of ASC 420, Exit or Disposal Cost Obligations, or ASC 712, Compensation - Non-retirement Post-employment Benefits, as applicable.

For involuntary termination benefits that are not provided under the terms of an ongoing benefit arrangement, the liability for the current fair value of expected future costs associated with a management-approved restructuring plan is recognized in the period in which the plan is communicated to the employees and the plan is not expected to change significantly.

For ongoing benefit arrangements, inclusive of statutory requirements, employee termination costs are accrued when the existing situation or set of circumstances indicates that an obligation has been incurred, it is probable the benefits will be paid, and the amount can be reasonably estimated.

Termination benefits associated with employees that elected to voluntarily terminate as part of the restructuring plan are recorded when the employee irrevocably accepts the offer and the amount can be reasonably estimated.

If applicable, the Company records such costs into operating expense over the terminated employees’ future service period beyond any minimum or legally required retention period.

The majority of restructuring charges that have been incurred but not yet paid are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets.

In the fiscal year ended June 25, 2023, the Company initiated a restructuring plan designed to better align the Company’s cost structure with its outlook for the economic environment and business opportunities.

Under the plan the Company terminated approximately 1,650 employees, incurring expenses related to employee severance and separation costs.

Employee severance and separation costs primarily relate to severance, non-cash severance, including equity award compensation expense, pension and other termination benefits.

Additionally, the Company made a strategic decision to relocate certain manufacturing activities to pre-existing facilities and incurred charges to move inventory and equipment and exit selected supplier arrangements.

During the fiscal year ended June 25, 2023, net restructuring costs of $ 78.2 million and $ 42.2 million were recorded in restructuring charges, net - cost of goods sold, and restructuring charges, net - operating expenses, respectively in the Consolidated Statements of Operations.

The Company anticipates the restructuring plan to be substantially complete by December 24, 2023, and estimates that incremental restructuring charges totaling approximately $ 18 million will be incurred in the fiscal quarters ending September 24, 2023 and December 24, 2023.

The following table is a summary of the activity related to the restructuring plan:

Severance and Benefits Other Total

(in thousands)

Restructuring expense $ 107,063 $ 13,253 $ 120,316

Cash payments ( 96,047 ) ( 12,378 ) ( 108,425 )

Non-cash activities ( 3,027 ) ( 629 ) ( 3,656 )

Restructuring liability as of June 25, 2023 $ 7,989 $ 246 $ 8,235

Lam Research Corporation 2023 10-K 71

Report of Independent Registered Public Accounting Firm

64 unchanged sentences

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-K

Item 8. Financial Statements and Supplementary Data