What changed in this filing

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Item 1. Financial Statements

2025-04-25 compared with 2025-01-31 · 96 added, 94 removed, 406 unchanged (32% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

Three Months Ended Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

Revenue $ 4,720,175 $ 3,793,558 $ 13,264,198 $ 11,033,879

23 unchanged sentences

(in thousands)

Three Months Ended Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

Net income $ 1,330,667 $ 965,826 $ 3,638,129 $ 2,807,490

19 unchanged sentences

Cash and cash equivalents $ 5,450,718 $ 5,847,856

Accounts receivable, less allowance of $ 5,713 as of December 29, 2024, and $ 5,277 as of June 30, 2024

Accounts receivable, less allowance of $ 5,886 as of March 30, 2025, and $ 5,277 as of June 30, 2024

3,228,182 2,519,250

21 unchanged sentences

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

authorized, 4,000,000 shares as of December 29, 2024 and June 30, 2024;

issued and outstanding, 1,284,956 shares as of December 29, 2024, and 1,303,769 shares as of June 30, 2024

authorized, 4,000,000 shares as of March 30, 2025 and June 30, 2024;

issued and outstanding, 1,282,957 shares as of March 30, 2025, and 1,303,769 shares as of June 30, 2024

Additional paid-in capital 8,529,007 8,223,046

Treasury stock, at cost;

1,667,484 shares as of December 29, 2024, and 1,648,239 shares as of June 30, 2024

1,673,040 shares as of March 30, 2025, and 1,648,239 shares as of June 30, 2024

( 26,455,865 ) ( 24,365,783 )

9 unchanged sentences

(in thousands)

Six Months Ended

2024 December 24,

Nine Months Ended

2025 March 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

10 unchanged sentences

Proceeds from maturities of available-for-sales securities — 34,336

Proceeds from sales of available-for-sale securities — 3,430

Other, net 8,154 ( 10,845 )

1 unchanged sentence

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on debt, including finance lease obligations ( 1,966 ) ( 254,095 )

Principal payments on debt, including finance lease obligations and payments for debt issuance costs ( 506,003 ) ( 255,155 )

Treasury stock purchases, including excise tax payments ( 2,130,044 ) ( 2,469,257 )

15 unchanged sentences

Transfers of finished goods inventory to property and equipment 74,560 55,290

Reconciliation of cash, cash equivalents, and restricted cash December 29,

2024 December 24,

Reconciliation of cash, cash equivalents, and restricted cash March 30,

2025 March 31,

Cash and cash equivalents $ 5,450,718 $ 5,672,232

8 unchanged sentences

Three Months Ended

December 29, 2024

March 30, 2025

Shares Common

5 unchanged sentences

Earnings Total

Balance at September 29, 2024 1,291,958 $ 1,292 $ 8,303,014 $ ( 25,374,657 ) $ ( 87,803 ) $ 25,630,045 $ 8,471,891

Balance at December 29, 2024 1,284,956 $ 1,285 $ 8,439,903 $ ( 26,024,098 ) $ ( 134,085 ) $ 26,525,021 $ 8,808,026

Issuance of common stock 3,558 4 1,989 — — — 1,993

Purchase of treasury stock ( 5,557 ) ( 6 ) — ( 431,767 ) — — ( 431,773 )

Reissuance of treasury stock 1,162 1 55,124 5,432 — — 60,557

Equity-based compensation expense — — 87,115 — — — 87,115

Net income — — — — — 1,330,667 1,330,667

Other comprehensive loss — — — — ( 46,282 ) — ( 46,282 )

Other comprehensive income — — — — 10,174 — 10,174

Cash dividends declared ($ 0.23 per common share)

— — — — — ( 295,097 ) ( 295,097 )

Balance at December 29, 2024 1,284,956 $ 1,285 $ 8,439,903 $ ( 26,024,098 ) $ ( 134,085 ) $ 26,525,021 $ 8,808,026

Six Months Ended

December 29, 2024

Balance at March 30, 2025 1,282,957 $ 1,283 $ 8,529,007 $ ( 26,455,865 ) $ ( 123,911 ) $ 27,560,591 $ 9,511,105

Nine Months Ended

March 30, 2025

Shares Common

11 unchanged sentences

Net income — — — — — 3,638,129 3,638,129

Other comprehensive loss — — — — ( 3,657 ) — ( 3,657 )

Other comprehensive income — — — — 6,517 — 6,517

Cash dividends declared ($ 0.69 per common share)

— — — — — ( 888,853 ) ( 888,853 )

Balance at December 29, 2024 1,284,956 $ 1,285 $ 8,439,903 $ ( 26,024,098 ) $ ( 134,085 ) $ 26,525,021 $ 8,808,026

Balance at March 30, 2025 1,282,957 $ 1,283 $ 8,529,007 $ ( 26,455,865 ) $ ( 123,911 ) $ 27,560,591 $ 9,511,105

See Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Three Months Ended

December 24, 2023

March 31, 2024

Shares Common

5 unchanged sentences

Earnings Total

Balance at September 24, 2023 1,320,721 $ 1,320 $ 7,876,778 $ ( 22,364,807 ) $ ( 121,350 ) $ 22,655,389 $ 8,047,330

Balance at December 24, 2023 1,312,782 $ 1,313 $ 7,994,997 $ ( 23,003,286 ) $ ( 117,694 ) $ 23,347,148 $ 8,222,478

Issuance of common stock 4,094 4 8,231 — — — 8,235

Purchase of treasury stock ( 9,515 ) ( 10 ) — ( 980,151 ) — — ( 980,161 )

Reissuance of treasury stock 1,504 1 46,615 6,465 — — 53,081

Equity-based compensation expense — — 76,854 — — — 76,854

Net income — — — — — 965,826 965,826

Other comprehensive income — — — — 3,656 — 3,656

Other comprehensive loss — — — — ( 10,094 ) — ( 10,094 )

Cash dividends declared ($ 0.20 per common share)

— — — — — ( 261,037 ) ( 261,037 )

Balance at December 24, 2023 1,312,782 $ 1,313 $ 7,994,997 $ ( 23,003,286 ) $ ( 117,694 ) $ 23,347,148 $ 8,222,478

Six Months Ended

December 24, 2023

Balance at March 31, 2024 1,307,361 $ 1,307 $ 8,080,082 $ ( 23,983,437 ) $ ( 127,788 ) $ 24,051,937 $ 8,022,101

Nine Months Ended

March 31, 2024

Shares Common

14 unchanged sentences

— — — — — ( 787,649 ) ( 787,649 )

Balance at December 24, 2023 1,312,782 $ 1,313 $ 7,994,997 $ ( 23,003,286 ) $ ( 117,694 ) $ 23,347,148 $ 8,222,478

Balance at March 31, 2024 1,307,361 $ 1,307 $ 8,080,082 $ ( 23,983,437 ) $ ( 127,788 ) $ 24,051,937 $ 8,022,101

See Notes to Condensed Consolidated Financial Statements

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 29, 2024

March 30, 2025

NOTE 1 — BASIS OF PRESENTATION

8 unchanged sentences

The Company’s current fiscal year will end June 29, 2025 and includes 52 weeks.

The quarters ended December 29, 2024 (the “December 2024 quarter”) and December 24, 2023 included 13 weeks.

The quarters ended March 30, 2025 (the “March 2025 quarter”) and March 31, 2024 included 13 weeks and 14 weeks, respectively.

Common Stock Split:

6 unchanged sentences

Recently Adopted or Effective

The Company has not adopted any new accounting standards during the six months ended December 29, 2024 that have a material impact on the Company’s Condensed Consolidated Financial Statements.

The Company has not adopted any new accounting standards during the nine months ended March 30, 2025 that have a material impact on the Company’s Condensed Consolidated Financial Statements.

Updates Not Yet Effective

3 unchanged sentences

The Company is required to adopt this standard in the fiscal year 2025 for the annual reporting period ending June 29, 2025, with retrospective disclosure of prior periods presented.

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

The Company does not expect the adoption of ASU 2023-07 to have an impact on its Consolidated Financial Statements other than additional footnote disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

23 unchanged sentences

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

Three Months Ended Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

(In thousands)

2 unchanged sentences

$ 4,720,175 $ 3,793,558 $ 13,264,198 $ 11,033,879

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

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

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

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

Three Months Ended Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

(In thousands)

2 unchanged sentences

Taiwan 1,125,955 334,952 2,478,997 1,077,325

United States 413,281 218,789 901,662 501,013

Japan 474,935 340,331 1,139,597 1,177,696

United States 189,512 227,085 1,091,174 728,098

Southeast Asia 178,287 190,328 710,394 495,060

2 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 Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

Memory 43 % 44 % 43 % 44 %

3 unchanged sentences

Deferred Revenue

Revenue of $ 311.7 million and $ 683.1 million included in deferred profit at June 30, 2024 was recognized during the three and six months ended December 29, 2024, representing 20 % and 44 %, respectively, of the $ 1,551.6 million of deferred revenue as of June 30, 2024.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of December 29, 2024 and when the Company expects to recognize the amounts as revenue:

Revenue of $ 179.6 million and $ 862.7 million included in deferred profit at June 30, 2024 was recognized during the three and nine months ended March 30, 2025, representing 12 % and 56 %, respectively, of the $ 1,551.6 million of deferred revenue as of June 30, 2024.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of March 30, 2025 and when the Company expects to recognize the amounts as revenue:

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

10 unchanged sentences

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 Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

(in thousands)

3 unchanged sentences

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

Three Months Ended Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

(in thousands)

1 unchanged sentence

Interest expense ( 45,184 ) ( 47,153 ) ( 135,429 ) ( 138,797 )

Gains on deferred compensation plan-related assets, net 4,502 25,530 21,922 22,629

Foreign exchange (losses) gains, net ( 5,117 ) ( 568 ) ( 14,803 ) 701

(Losses) Gains on deferred compensation plan-related assets, net ( 16,903 ) 26,495 5,019 49,124

Foreign exchange losses, net ( 4,702 ) ( 4,344 ) ( 19,505 ) ( 3,643 )

Other, net ( 8,884 ) ( 10,677 ) ( 7,475 ) ( 24,082 )

3 unchanged sentences

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

Three Months Ended Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

(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 six months ended December 29, 2024 and December 24, 2023 was primarily due to income in lower tax jurisdictions.

federal statutory tax rate of 21% and the Company’s effective tax rate for the three and nine months ended March 30, 2025 and March 31, 2024 was primarily due to income in lower tax jurisdictions.

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

4 unchanged sentences

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 as a result of lapses of statutes of limitation may range up to $ 211.1 million.

The change in uncertain tax positions as a result of lapses of statutes of limitation may range up to $ 211.0 million, excluding interest and penalties.

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 Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

(in thousands, except per share data)

7 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.

These anti-dilutive securities, including options and RSUs, were not material for the three and six months ended December 29, 2024 and December 24, 2023.

These anti-dilutive securities, including options and RSUs, were not material for the three and nine months ended March 30, 2025 and March 31, 2024.

NOTE 8 — FINANCIAL INSTRUMENTS

The Company’s investment strategies and investment and fair value policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to the Consolidated Financial Statements in Part II, Item 8 of its 2024 Form 10-K.

As of December 29, 2024 and June 30, 2024, the fair value of mutual funds and equity investments were not material.

The Company had no debt security investments as of December 29, 2024 and June 30, 2024.

The financial statement impacts to the Condensed Consolidated Statement of Operations from debt and equity investments were not material as of and for the three and six months ended December 29, 2024 and December 24, 2023.

As of March 30, 2025 and June 30, 2024, the fair value of mutual funds and equity investments were not material.

The Company had no debt security investments as of March 30, 2025 and June 30, 2024.

The financial statement impacts to the Condensed Consolidated Statement of Operations from debt and equity investments were not material as of and for the three and nine months ended March 30, 2025 and March 31, 2024.

Lam Research Corporation 2025 Q3 10-Q 12

The financial instruments reported within Cash and Cash Equivalents in the Company’s Condensed Consolidated Balance Sheets as of December 29, 2024, and June 30, 2024 consisted of the following:

The financial instruments reported within Cash and Cash Equivalents in the Company’s Condensed Consolidated Balance Sheets as of March 30, 2025, and June 30, 2024 consisted of the following:

2025 June 30,

6 unchanged sentences

The Company’s hedging strategies and policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to the Consolidated Financial Statements in Part II, Item 8 of its 2024 Form 10-K.

As of December 29, 2024 and June 30, 2024, the fair value of outstanding cash flow and balance sheet hedges were not material.

The financial statement impacts to the Condensed Consolidated Statement of Operations from derivative instruments and hedging activities were not material as of and for the three and six months ended December 29, 2024 and December 24, 2023.

As of March 30, 2025 and June 30, 2024, the fair value of outstanding cash flow and balance sheet hedges were not material.

The financial statement impacts to the Condensed Consolidated Statement of Operations from derivative instruments and hedging activities were not material as of and for the three and nine months ended March 30, 2025 and March 31, 2024.

Concentrations of Credit Risk

19 unchanged sentences

$ 1,999,892 $ 1,801,877

NOTE 11 — LONG-TERM DEBT AND OTHER BORROWINGS

The Company’s outstanding Senior Notes are unchanged from those disclosed in Note 14, “Long-term Debt and Other Borrowings,” to the Consolidated Financial Statements in Part II, Item 8 of its 2024 Form 10-K.

Lam Research Corporation 2025 Q3 10-Q 13

NOTE 11 — LONG-TERM DEBT AND OTHER BORROWINGS

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 2025 Notes were settled upon maturity during the three months ended March 30, 2025.

The remaining outstanding Senior Notes are unchanged from those disclosed in Note 14, “Long-term Debt and Other Borrowings,” to the Consolidated Financial Statements in Part II, Item 8 of the Company’s 2024 Form 10-K.

Revolving Credit Facility

6 unchanged sentences

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

As of December 29, 2024, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants.

As of March 30, 2025, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants.

Commercial Paper Program

3 unchanged sentences

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

As of December 29, 2024, 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 March 30, 2025, 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 December 29, 2024, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $ 203.6 million.

As of March 30, 2025, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $ 205.9 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.

5 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 December 29, 2024, warranty reserves totaling $ 23.4 million were reported 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 March 30, 2025, warranty reserves totaling $ 19.6 million were reported in Other long-term liabilities, and the remainder were included in Accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets.

Lam Research Corporation 2025 Q3 10-Q 14

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

Three Months Ended Six Months Ended

2024 December 24,

2023 December 29,

2024 December 24,

Three Months Ended Nine Months Ended

2025 March 31,

2024 March 30,

2025 March 31,

(in thousands)

26 unchanged sentences

Quarter ended December 29, 2024 8,336 $ 650,445 $ 78.03 $ 9,170,561

Quarter ended March 30, 2025 4,448 $ 346,549 $ 77.91 $ 8,824,012

(1) The Company’s net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act.

6 unchanged sentences

Lam Research Corporation 2025 Q3 10-Q 15

No restructuring charges were recorded during the three and six months ended December 29, 2024.

During the three months ended December 24, 2023, net restructuring costs of $ 15.0 million and $ 1.7 million were recorded in restructuring charges, net - cost of goods sold, and restructuring charges, net - operating expenses, respectively, in the Condensed Consolidated Statements of Operations.

During the six months ended December 24, 2023, net restructuring costs of $ 22.9 million and $ 3.7 million were recorded in Restructuring charges, net - cost of goods sold, and Restructuring charges, net - operating expenses, respectively in the Condensed Consolidated Statements of Operations.

No restructuring charges were recorded during the three and nine months ended March 30, 2025.

During the three months ended March 31, 2024, net restructuring costs of $ 15.2 million and $ 15.2 million were recorded in restructuring charges, net - cost of goods sold, and restructuring charges, net - operating expenses, respectively, in the Condensed Consolidated Statements of Operations.

During the nine months ended March 31, 2024, net restructuring costs of $ 38.1 million and $ 19.0 million were recorded in Restructuring charges, net - cost of goods sold, and Restructuring charges, net - operating expenses, respectively in the Condensed Consolidated Statements of Operations.

The restructuring plan was substantially completed as of June 30, 2024, and cumulative costs as of June 30, 2024 totaled $ 181.9 million.

2 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-Q

Item 1. Financial Statements