What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-08-11 compared with 2024-08-29 · 153 added, 269 removed, 976 unchanged (30% of the section changed)

10 unchanged sentences

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LAM RESEARCH CORPORATION

25 unchanged sentences

Lam Research Corporation 2025 10-K 38

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LAM RESEARCH CORPORATION

8 unchanged sentences

Net unrealized gains during the period 20,758 20,370 10,413

Net gains reclassified into net income ( 27,370 ) ( 9,411 ) ( 29,054 )

Net losses (gains) reclassified into net income 7,173 ( 27,370 ) ( 9,411 )

27,931 ( 7,000 ) 1,002

Available-for-sale investments:

Net unrealized gains (losses) during the period 314 1,491 ( 4,638 )

Net (gains) losses reclassified into net income ( 10 ) ( 158 ) 1,390

304 1,333 ( 3,248 )

Net unrealized gains during the period — 314 1,491

Net gains reclassified into net income — ( 10 ) ( 158 )

Defined benefit plans, net change in unrealized component ( 4,208 ) 6,054 83

Other comprehensive (loss) income, net of tax ( 29,722 ) 9,276 ( 45,854 )

Other comprehensive income (loss), net of tax 68,005 ( 29,722 ) 9,276

Comprehensive income $ 5,426,222 $ 3,798,050 $ 4,520,207

1 unchanged sentence

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LAM RESEARCH CORPORATION

9 unchanged sentences

Property and equipment, net 2,428,744 2,154,518

Goodwill 1,626,528 1,622,489

Intangible assets, net 138,545 168,454

Goodwill and intangible assets, net 1,808,685 1,765,073

Other assets 2,590,836 1,941,917

6 unchanged sentences

Total current liabilities 6,568,425 4,338,438

Long-term debt and finance lease obligations, less current portion 4,478,520 5,003,183

Long-term debt and finance lease obligations 3,730,194 4,478,520

Income taxes payable 603,412 813,304

17 unchanged sentences

Lam Research Corporation 2025 10-K 40

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LAM RESEARCH CORPORATION

21 unchanged sentences

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

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

Proceeds from maturities of available-for-sale securities — 34,336 91,295

1 unchanged sentence

Other, net 51,094 ( 11,710 ) ( 11,171 )

Net cash (used for) provided by investing activities ( 370,614 ) ( 534,562 ) 612,275

Net cash used for investing activities ( 708,092 ) ( 370,614 ) ( 534,562 )

Lam Research Corporation 2025 10-K 41

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2025 June 30,

29 unchanged sentences

Lam Research Corporation 2025 10-K 42

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LAM RESEARCH CORPORATION

14 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 ($ 0.69 per common share)

6 unchanged sentences

Net income — — — — — 3,827,772 3,827,772

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

Other comprehensive loss — — — — ( 29,722 ) — ( 29,722 )

Cash dividends declared ($ 0.80 per common share)

6 unchanged sentences

Net income — — — — — 5,358,217 5,358,217

Other comprehensive loss — — — — ( 29,722 ) — ( 29,722 )

Other comprehensive income — — — — 68,005 — 68,005

Cash dividends declared ($ 0.92 per common share)

3 unchanged sentences

Lam Research Corporation 2025 10-K 43

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

14 unchanged sentences

For these and other reasons, the Company’s results of operations for fiscal years 2025, 2024, and 2023 may not necessarily be indicative of future operating results.

Common Stock Split:

On October 2, 2024, the Company effected a ten -for-one stock split of its common stock and a proportionate increase in the number of authorized shares.

All share and per share amounts throughout this Annual Report on Form 10-K have been retroactively adjusted to reflect the stock split.

The par value per share remains unchanged at $ 0.001 per share after the stock split.

Reclassification:

Certain amounts for the fiscal years 2023 and 2022 Consolidated Balance Sheets and notes to the financial statements have been reclassified to conform to the fiscal year 2024 presentation.

Certain amounts for the fiscal year 2024 Consolidated Balance Sheet and notes to the financial statements have been reclassified to conform to the fiscal year 2025 presentation.

Summary of Significant Accounting Policies

6 unchanged sentences

Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes estimates for discounts and credits for future usage which are based on contractual terms outlined in volume purchase agreements and other factors known at the time.

The Company generally invoices customers at shipment and for professional services either as provided or upon meeting certain milestones.

The Company generally invoices customers at shipment and for professional services as provided.

Customer invoices are generally due within 30 to 90 days after issuance.

10 unchanged sentences

If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of goods sold in the period in which the revision is made.

Lam Research Corporation 2025 10-K 44

Typically, the sale of semiconductor capital equipment includes providing parts and service warranties to customers as part of the overall price of the system.

4 unchanged sentences

All actual or estimated parts and labor costs incurred in subsequent periods are charged to those established reserves on a system-by-system basis.

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While the Company periodically monitors the performance and cost of warranty activities, if actual costs incurred are different than its estimates, the Company may recognize adjustments to provisions in the period in which those differences arise or are identified.

1 unchanged sentence

The Company recognizes the fair value of equity-based compensation expense.

The Company determines the fair value of its RSUs, excluding market-based performance RSUs, based upon the fair market value of Company’s Common Stock at the date of grant, discounted for dividends.

The Company estimates the fair value of its market-based performance RSUs using a Monte Carlo simulation model at the date of the grant.

The Company determines the fair value of its service-based restricted stock units based upon the fair market value of the Company’s Common Stock at the date of grant, discounted for dividends, and estimates the fair value of its market-based performance restricted stock units using a Monte Carlo simulation model at the date of the grant.

The Company estimates the fair value of its stock options using a Black-Scholes option valuation model.

This model requires the input of subjective assumptions, including expected stock price volatility and the estimated life of each award.

The Company amortizes the fair value of equity-based awards over the vesting periods of the award, and the Company has elected to use the straight-line method of amortization.

The Company amortizes the fair value of equity-based awards over the vesting periods of the award and has elected to use the straight-line method of amortization.

Income Taxes:

6 unchanged sentences

Likewise, if the Company later determines that it is more likely than not that the deferred tax assets will be realized, then the previously provided valuation allowance will be reversed.

The Company has an accounting policy election to record deferred taxes related to GILTI.

The Company recognizes the benefit from a tax position only if it is more likely than not that the position will be sustained upon audit based solely on the technical merits of the tax position.

The Company’s policy is to include interest and penalties related to uncertain tax positions as a component of income tax expense.

The Company has a policy to include interest and penalties related to uncertain tax positions as a component of income tax expense.

Goodwill and Intangible Assets :

21 unchanged sentences

Assets to be disposed of are reported at the lower of the carrying amount or fair value.

For the periods presented, impairment of long-lived assets were no t material.

In addition, for fully amortized intangible assets, we derecognize the gross cost and accumulated amortization in the period we determine the intangible asset no longer enhances future cash flows.

For the periods presented,

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impairment of long-lived assets were no t material.

In addition, for fully amortized intangible assets, we derecognize the gross cost and accumulated amortization in the period we determine the intangible asset no longer enhances future cash flows.

The Company follows a 52/53-week fiscal reporting calendar, and its fiscal year ends on the last Sunday of June each year.

The Company’s most recent fiscal year ended on June 30, 2024 and included 53 weeks, and the fiscal years ended June 25, 2023 and June 26, 2022 each included 52 weeks.

The Company’s fiscal years ending on June 29, 2025 and June 25, 2023 included 52 weeks, and the fiscal year ended June 30, 2024 included 53 weeks.

Principles of Consolidation:

43 unchanged sentences

If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge are reclassified from Accumulated other comprehensive income (loss) to Other income (expense), net on the Consolidated Statement of Operations at that time.

Lam Research Corporation 2025 10-K 46

Lease expense for operating leases is recognized on a straight-line basis over the lease term.

1 unchanged sentence

The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments when the rate implicit in the lease is unknown.

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The Company has elected the following practical expedients and accounting policy elections for accounting under ASC 842:

17 unchanged sentences

Recently Adopted or Effective

The Company did not adopt any new accounting standards during fiscal year 2024 that had a material impact on the Company’s Consolidated Financial Statements.

Updates Not Yet Effective

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280):

1 unchanged sentence

The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

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 adopted this standard in fiscal year 2025 for the annual reporting period ending June 29, 2025, with retrospective disclosure of prior periods presented.

The adoption of ASU 2023-07 did not have an impact on the Company’s Consolidated Financial Statements other than additional footnote disclosures.

Refer to N ote 19:

Segment, Geographic Information, and Major Customers .

Updates Not Yet Effective

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

3 unchanged sentences

The Company is required to adopt this standard prospectively in fiscal year 2026 for the annual reporting period ending June 28, 2026.

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 2023-09 to have an impact on its Consolidated Financial Statements other than additional footnote disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses,” which requires disaggregation of certain expenses in the notes to the financial statements to provide enhanced transparency into the expense captions presented on the face of the income statement.

In January 2025, the FASB issued ASU 2025-01 which clarified the effective date for entities that do not have an annual reporting period that ends on December 31st.

The guidance is effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is required to adopt this standard in fiscal year 2028 for the annual reporting period ending June 25, 2028 either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements.

The Company will apply the guidance prospectively and is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

Lam Research Corporation 2025 10-K 47

Disaggregation of Revenue

6 unchanged sentences

$ 18,435,591 $ 14,905,386 $ 17,428,516

Lam Research Corporation 2024 10-K 47

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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 water 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.

2 unchanged sentences

Refer to Note 19:

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.

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:

3 unchanged sentences

2024 June 25,

Memory 42 % 42 % 60 %

Foundry 45 % 40 % 38 %

Memory 42 % 42 % 42 %

Logic/integrated device manufacturing 13 % 18 % 20 %

7 unchanged sentences

Equity-based Compensation Plan

The Company has stock plans that provide for grants 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 Company has stock plans that provide for grants of non-qualified equity-based awards of the Company’s Common Stock to eligible employees and non-employee directors, including stock options, service-based restricted stock units (“service-based RSUs”), and market-based performance restricted stock units (“market-based PRSUs”).

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

An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting.

A restricted stock unit award is an agreement to issue a set number of shares of Common Stock at the time of vesting.

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

1 unchanged sentence

As of the date of stockholder approval, 192,320,680 authorized shares were available for issuance under the Plan;

as of June 30, 2024, 6,891,996 shares remain available for future issuance to satisfy stock option exercises and vesting of awards.

as of June 29, 2025, 62,666,508 shar es remain available for future issuance to satisfy stock option exercises and vesting of awards.

Lam Research Corporation 2025 10-K 48

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 Consolidated Statements of Operations:

6 unchanged sentences

The estimated fair value of the Company’s equity-based awards, less expected forfeitures, is amortized over the awards’ vesting terms on a straight-line basis.

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Restricted Stock Units

During the fiscal years 2024, 2023, and 2022, the Company issued both service-based RSUs and market-based PRSUs.

During fiscal years 2025, 2024, and 2023, the Company issued both service-based RSUs and market-based PRSUs.

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.

Based upon the terms of such awards, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of a designated benchmark index, ranging from 0 % to 150 % of target.

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

For the majority of market-based PRSUs granted in the 2025 fiscal year, the number of shares that can be earned over the performance period is based on the Company’s total shareholder return (“TSR”) relative to other companies in the Philadelphia Semiconductor Index (“XSOX”), and ranges from 0 % to 150 % of target.

Total shareholder return is a measure of stock price appreciation in the performance period, adjusted for the reinvestment of dividends.

Relative TSR performance is measured using the average closing prices of each XSOX company for the 50 -trading days prior to the dates the performance period begins and ends.

The target number of shares is earned based on the percentile ranking of the Company’s TSR among the TSRs for the companies making up the XSOX Index.

If the Company’s TSR is negative over the performance period, the payout will be capped at 100 %, regardless of the percentile ranking.

For market-based PRSUs granted in the 2024 and 2023 fiscal years, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of the Philadelphia Semiconductor Total Return Index (“XSOX”), and ranges from 0 % to 150 % of target.

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.

Market-based PRSUs utilize the XSOX, which index gives effect to the reinvestment of dividends paid on its constituent holdings, as the benchmark;

and accordingly, the Company's Common Stock price performance was adjusted for the reinvestment of dividends on Common Stock on the ex-dividend date.

The result of the vesting formula is rounded down to the nearest whole number.

Total stockholder return is a measure of stock price appreciation in this performance period.

The following table summarizes the Company’s combined service-based RSUs and market-based PRSUs:

11 unchanged sentences

As of June 29, 2025, the Company had $ 521.3 million of total unrecognized compensation expense which is expected to be recognized over a weighted-average remaining period of approximately 2.2 years.

Lam Research Corporation 2025 10-K 49

Stock Options

6 unchanged sentences

During fiscal year 2025, approximately 2,468 thousand shares of the Company’s Common Stock were sold to employees under the ESPP.

At June 30, 2024, approximately 5.1 million shares were available for purchase, and the Company had $ 15.7 million of total unrecognized compensation cost, which is expected to be recognized over a remaining period of less than six months .

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At June 29, 2025, approximately 48.4 million shares were available for purchase, and the Company had $ 47.0 million of total unrecognized compensation cost, which is expected to be recognized over a remaining period of less than ten months .

Other Income (Expense), Net

5 unchanged sentences

Interest expense ( 178,203 ) ( 185,236 ) ( 186,462 )

Gains (losses) on deferred compensation plan related assets, net 58,767 20,186 ( 38,053 )

Gains on deferred compensation plan related assets, net 39,121 58,767 20,186

Foreign exchange losses, net ( 26,412 ) ( 4,837 ) ( 7,078 )

1 unchanged sentence

$ 57,161 $ 96,309 $ ( 65,650 )

Interest income in the year ended June 30, 2024, increased compared to the years ended June 25, 2023 and June 26, 2022, primarily as a result of higher yields and higher cash balances.

Interest expense in the year ended June 30, 2024, was flat compared to the years ended June 25, 2023 and June 26, 2022.

The gains or losses on deferred compensation plan related assets, net in fiscal years 2024, 2023 and 2022 were driven by fluctuations in the fair market value of the underlying funds.

Interest income in the year ended June 29, 2025 decreased compared to the year ended June 30, 2024 primarily due to lower interest rates, partially offset by higher cash balances.

Interest income in the year ended June 30, 2024 increased compared to the year ended June 25, 2023, primarily as a result of higher yields and higher cash balances.

Interest expense decreased in fiscal year 2025 compared to fiscal year 2024 primarily due to the maturity of $ 500 million of the Company’s senior notes in March 2025.

Interest expense was flat in fiscal year 2024 compared to fiscal year 2023.

The gains on deferred compensation plan related assets, net in fiscal years 2025, 2024 and 2023 were driven by fluctuations in the fair market value of the underlying funds.

The variations in other, net for the year ended June 29, 2025 compared to the years ended June 30, 2024 and June 25, 2023 were primarily driven by fluctuations in the fair market value of equity investments.

7 unchanged sentences

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Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows:

24 unchanged sentences

Operating lease liabilities 50,722 57,972

Finance lease assets — 32,905

Intangible assets 4,831 4,908

7 unchanged sentences

Right-of-use assets ( 50,722 ) ( 57,337 )

Finance lease liabilities — ( 50,534 )

Other ( 6,370 ) ( 6,596 )

2 unchanged sentences

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The change in gross deferred tax assets, gross deferred tax liabilities, and valuation allowance between fiscal year 2024 and 2023 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.

1 unchanged sentence

At June 29, 2025, 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.

At June 30, 2024, the Company had federal net operating loss carryforwards of $ 7.5 million.

If not utilized, these losses will begin to expire in fiscal year 2026, and are subject to limitation on their utilization.

At June 30, 2024, the Company had state net operating loss carryforwards of $ 119.1 million.

If not utilized, these losses will begin to expire in fiscal year 2025, and are subject to limitation on their utilization.

At June 30, 2024, the Company had foreign net operating loss carryforwards of $ 23.2 million.

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

At June 29, 2025, the Company had state tax credit carryforwards of $ 642.2 million.

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The potential tax expense associated with these foreign withholding taxes would be offset by $ 121.7 million of foreign tax credits that would be generated in the United States upon remittance.

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

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

The IRA includes a new 15% corporate alternative minimum tax.

The Company has evaluated the impacts of the IRA, including guidance issued by the Treasury Department, and does not expect it to have a material impact on the effective tax rate.

Other potential tax consequences, such as state income inclusions of these earnings, cannot be estimated.

On July 4, 2025, the OBBBA was signed into law by U.S.

President Donald Trump.

The impact on income taxes due to change in legislation is required, under ASC 740, Income Taxes, to be recognized in the period in which the law is enacted, which is during the Company’s fiscal year 2026.

In general, the OBBBA introduces changes to U.S.

taxation, including changes in the taxation of non-U.S.

The Company is currently assessing the potential implications of these changes to its fiscal year 2026 Consolidated Financial Statements.

The Company’s gross uncertain tax positions were $ 720.3 million, $ 723.8 million, and $ 640.2 million as of June 29, 2025, June 30, 2024, and June 25, 2023, respectively.

During fiscal year 2024, gross uncertain tax positions increased by $ 83.6 million.

During fiscal year 2025, gross uncertain tax positions decreased by $ 3.5 million.

The amount of uncertain tax positions that, if recognized, would impact the effective tax rate was $ 604.6 million, $ 622.6 million, and $ 550.1 million, as of June 29, 2025, June 30, 2024, and June 25, 2023, respectively.

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of uncertain tax positions that, if recognized, would impact the effective tax rate was $ 622.6 million, $ 550.1 million, and $ 539.6 million, as of June 30, 2024, June 25, 2023, and June 26, 2022, respectively.

The aggregate changes in the balance of gross uncertain tax positions were as follows:

9 unchanged sentences

Lapse of statute of limitations ( 10,114 )

Increases in balances related to tax positions taken during prior periods 5,841

Decreases in balances related to tax positions taken during prior periods ( 12,326 )

3 unchanged sentences

Lapse of statute of limitations ( 211,696 )

Increases in balances related to tax positions taken during prior periods 69,016

Decreases in balances related to tax positions taken during prior periods ( 3,983 )

1 unchanged sentence

Balance as of June 29, 2025 $ 720,321

The Company recognizes interest expense and penalties related to the above uncertain tax positions within income tax expense.

The Company had accrued $ 86.3 million, $ 105.7 million, and $ 74.4 million cumulatively for gross interest and penalties as of June 29, 2025, June 30, 2024, and June 25, 2023, respectively.

11 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 $ 212.2 million.

The change in uncertain tax positions as a result of lapses of statutes of limitation may range up to $ 52.9 million, excluding interest and penalties.

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Net Income per Share

23 unchanged sentences

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

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

7 unchanged sentences

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The Company accounts for its investment portfolio at fair value.

8 unchanged sentences

Investments are recorded within Prepaid expenses and other current assets in the Company’s Consolidated Balance Sheets.

As of June 30, 2024 and June 25, 2023, the fair value;

and associated unrealized loss positions, if any, of mutual funds and debt and equity investments were not material.

Gross realized gains/(losses) from sales of investments were insignificant in the fiscal years 2024, 2023, and 2022.

As of June 29, 2025 and June 30, 2024, the fair value, and associated unrealized loss positions, if any, of mutual funds and debt and equity investments were not material.

Gross realized gains/(losses) from sales of investments were insignificant in fiscal years 2025, 2024, and 2023.

The financial instruments reported within Cash and cash equivalents in the Company’s Consolidated Balance Sheets as of June 29, 2025, and June 30, 2024 consisted of the following:

5 unchanged sentences

Total $ 6,390,659 $ 5,847,856

In addition, as of June 25, 2023 the Company had restricted cash in the form of time deposits of $ 250.0 million reported within Other assets in the Consolidated Balance Sheets that was subsequently released in the three months ended September 24, 2023.

Refer to Note 15:

Leas e s for more information.

Derivative Instruments and Hedging

3 unchanged sentences

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 June 30, 2024 and June 25, 2023, the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be immaterial to the 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.

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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 fiscal years ended June 30, 2024, June 25, 2023, or June 26, 2022 associated with forecasted transactions that did not occur, nor any ineffectiveness recognized in the same periods.

As of June 29, 2025 and June 30, 2024, the fair value of outstanding cash flow hedges was not material.

3 unchanged sentences

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 June 29, 2025 and June 30, 2024, the fair value of outstanding balance sheet hedges was not material.

6 unchanged sentences

Management believes that the financial institutions that hold the Company’s cash are creditworthy and, accordingly, minimal credit risk exists with respect to these balances.

Lam Research Corporation 2025 10-K 55

The Company’s overall portfolio of available-for-sale securities must maintain an average minimum rating of “AA-” or “Aa3” as rated by Standard and Poor’s, Fitch Ratings, or Moody’s Investor Services.

10 unchanged sentences

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

Lam Research Corporation 2024 10-K 56

Table of Content

Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis.

18 unchanged sentences

$ 2,405,522 $ 2,129,982

The Company has excluded $ 24.5 million, and $ 53.7 million of finance right-of-use assets recorded within property and equipment, net from the table above for the years ended June 30, 2024 and June 25, 2023, respectively.

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 2024, 2023, and 2022 was $ 299.0 million, $ 282.8 million, and $ 248.2 million, respectively.

The Company has excluded an immaterial value of finance right of use assets recorded within property and equipment, net from the table above.

Depreciation expense during fiscal years 2025, 2024, and 2023 was $ 329.5 million, $ 299.0 million, and $ 282.8 million, respectively.

Lam Research Corporation 2025 10-K 56

Goodwill and Intangible Assets

The balance of goodwill was $ 1.6 billion as of June 29, 2025 and June 30, 2024, respectively.

As of June 30, 2024 and June 25, 2023, $ 65.4 million of the goodwill balance is tax deductible, and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law.

As of June 29, 2025 and June 30, 2024, $ 78.9 million and $ 65.4 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 2025, 2024, or 2023.

Refer t o Note 20:

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

Intangible Assets

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

June 30, 2024 June 25, 2023

Gross Accumulated

Amortization Net Gross Accumulated

Amortization Net

(in thousands)

Customer relationships $ 644,128 $ ( 633,740 ) $ 10,388 $ 644,138 $ ( 631,420 ) $ 12,718

Existing technology 747,390 ( 686,460 ) 60,930 717,331 ( 674,549 ) 42,782

Patents and other intangible assets 208,052 ( 140,825 ) 67,227 199,532 ( 116,659 ) 82,873

Intangible assets subject to amortization 1,599,570 ( 1,461,025 ) 138,545 1,561,001 ( 1,422,628 ) 138,373

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

Total intangible assets $ 1,599,570 $ ( 1,461,025 ) $ 138,545 $ 1,591,082 $ ( 1,422,628 ) $ 168,454

Lam Research Corporation 2024 10-K 57

Table of Content

The Company recognized $ 56.3 million, $ 51.5 million, and $ 78.0 million in intangible asset amortization expense during fiscal years 2024, 2023, and 2022, respectively.

Intangible asset impairments in fiscal year 2024 were insignificant.

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

The estimated future amortization expense of intangible assets as of June 30, 2024, is reflected in the table below.

The table excludes $ 13.2 million of capitalized costs for intangible assets that have not yet been placed into service.

Fiscal Year Amount

(in thousands)

2025 $ 42,485

Thereafter 10,317

Refer t o Note 20:

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

The balance of intangible assets as of June 29, 2025 and June 30, 2024 were $ 182.2 million and $ 138.5 million, respectively.

The effect of intangible assets on the Company’s Consolidated Statement of Operations, including amortization and impairment, if any, was not material for fiscal years 2025, 2024, and 2023.

Accrued Expenses and Other Current Liabilities

6 unchanged sentences

Dividend payable 291,981 260,905

Restructuring 607 8,014

Other 693,806 609,495

$ 2,394,366 $ 1,801,877

Lam Research Corporation 2024 10-K 58

Table of Content

Long Term Debt and Other Borrowings

19 unchanged sentences

Unamortized discount ( 26,428 ) ( 28,148 )

Fair value adjustment - interest rate contracts — 3,050 (1)

Unamortized bond issuance costs ( 4,774 ) ( 5,435 )

3 unchanged sentences

Long-term debt $ 3,719,694 $ 4,466,045

(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 2025 10-K 57

The Company’s contractual cash obligations relating to its outstanding debt as of June 29, 2025, were as follows:

14 unchanged sentences

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

Lam Research Corporation 2024 10-K 59

Table of Content

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.

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

The Company may redeem the 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 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 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.

8 unchanged sentences

2060 Notes 35.0 $ 308,895

2060 Notes 36.0 $ 317,660

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

The Amendment No.1 To Second Amended and Restated Credit Agreement replaces the benchmark reference rate, London inter-bank offered rate, with term secured overnight financing rate (“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.

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”), December 7, 2022 (“Amendment No.1 to Second Amended and Restated Credit Agreement”), and January 27, 2025 (the “Third Amended and Restated Credit Agreement”).

The Third Amended and Restated Credit Agreement provides for a $ 2.0 billion revolving credit facility with a syndicate of lenders,

Lam Research Corporation 2025 10-K 58

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 $ 750.0 million, for a potential total commitment of $ 2.75 billion.

The facility matures on January 25, 2030.

Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, plus a spread of 0.00 % to 0.10 %, or (2) an adjusted term Secured Overnight Financing Rate, plus a spread of 0.70 % to 1.10 %, in each case plus a facility fee, with such spread and facility fee determined in accordance with the Third Amended and Restated Credit Agreement, and with the spread and facility fee based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt.

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.

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 June 29, 2025, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants.

8 unchanged sentences

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, and the revolving credit facility during the fiscal years ended June 29, 2025, June 30, 2024, and June 25, 2023.

Lam Research Corporation 2024 10-K 60

Table of Content

2025 June 30,

8 unchanged sentences

While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases.

The components of lease expense were as follows for the years ended June 30, 2024, June 25, 2023, and June 26, 2022:

2024 June 25,

2023 June 26,

(in thousands)

Financing lease cost:

Amortization of right-of-use assets $ 5,175 $ 7,899 $ 7,439

Interest on lease liabilities 756 863 658

Total finance lease cost $ 5,931 $ 8,762 $ 8,097

Operating lease cost $ 83,476 $ 75,660 $ 69,250

Variable lease cost 176,641 227,726 259,041

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

1 unchanged sentence

Variable lease costs will fluctuate based on factory output and material receipt volumes.

Short-term rental expense, for agreements less than one year in duration, were immaterial for the twelve months ended June 30, 2024, June 25, 2023, and June 26, 2022, respectively.

Variable lease costs for fiscal years 2025, 2024, and 2023 were $ 176.6 million, $ 176.6 million, and $ 227.7 million;

respectively.

Finance lease costs, including amortization of right of use assets and interest on lease liabilities;

short-term rental expense for agreements less than one year in duration;

and operating lease costs were immaterial for fiscal years 2025, 2024, and 2023, respectively.

Lam Research Corporation 2025 10-K 59

Supplemental cash flow information related to leases was as follows as of June 29, 2025, June 30, 2024, and June 25, 2023:

8 unchanged sentences

Finance leases 2,884 226,519 20,161

Lam Research Corporation 2024 10-K 61

Table of Content

Supplemental balance sheet information related to leases was as follows as of June 29, 2025 and June 30, 2024:

6 unchanged sentences

Total operating lease liabilities $ 272,050 $ 287,716

Finance Leases

Property and Equipment, net $ 24,536 $ 53,721

Current portion of long-term debt and lease liabilities $ 3,498 $ 7,937

Long-term debt and lease liabilities, less current portion 12,475 38,239

Total finance lease liabilities $ 15,973 $ 46,176

As of June 29, 2025 and June 30, 2024 outstanding finance lease obligations were immaterial.

June 29, 2025 June 30, 2024

2 unchanged sentences

Operating leases 4.9 3.75 % 4.9 3.54 %

Finance leases 5.8 3.39 % 5.2 2.56 %

As of June 30, 2024, the maturities of lease liabilities are as follows:

Operating Leases Finance Leases

As of June 29, 2025, the maturities of operating lease liabilities are as follows:

Operating Leases

(in thousands)

2026 $ 86,814

2026 61,810 3,239

2027 48,115 2,840

2028 45,898 2,211

2029 46,964 1,779

Thereafter 43,267

4 unchanged sentences

The Company leases 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 Tualatin, Oregon campus;

Certain of the Company’s facility leases are for buildings located at its Tualatin, Oregon campus;

and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities.

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

Lam Research Corporation 2025 10-K 60

The Company elected to exercise purchase options available under its finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) in the three months ended September 24, 2023.

2 unchanged sentences

As a result of the purchase of the improved properties, $ 250.5 million of additions were made to Property and equipment, net in the Company’s Consolidated Balance Sheets primarily comprised of land ($ 40.5 million) and buildings and improvements ($ 210.0 million).

Lam Research Corporation 2024 10-K 62

Table of Content

Retirement and Deferred Compensation Plans

Employee Savings and Retirement Plan

The Company maintains a 401(k) retirement savings plan for its eligible employees in the United States.

Each participant in the plan may elect to contribute from 1 % to 75 % of annual eligible earnings to the plan, subject to statutory limitations.

The Company makes matching employee contributions in cash to the plan at the rate of 50 % of the first 6 % of earnings contributed.

Employees participating in the 401(k) retirement savings plan are fully vested in the Company matching contributions, and investments are directed by participants.

The Company made matching contributions of $ 34.3 million, $ 34.7 million, and $ 32.6 million, in fiscal years 2024, 2023, and 2022, respectively.

Deferred Compensation Arrangements

Deferred Compensation Plans

The Company has an unfunded, non-qualified deferred compensation plan whereby executives may defer a portion of their compensation.

6 unchanged sentences

As of June 29, 2025, and June 30, 2024, the Company had investments in the aggregate amount of $ 438.8 million and $ 393.5 million, respectively, which correlate to the deferred compensation obligations, which were recorded in Other assets on the Consolidated Balance Sheets.

Post-Retirement Healthcare Plan

The Company maintains a post-retirement healthcare plan for certain executive and director retirees.

Coverage continues through the duration of the lifetime of the retiree or the retiree’s spouse, whichever is longer.

The benefit obligation was $ 31.2 million and $ 33.2 million as of June 30, 2024, and June 25, 2023, respectively.

Commitments and Contingencies

20 unchanged sentences

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.

Lam Research Corporation 2024 10-K 63

Table of Content

Purchase Obligations

3 unchanged sentences

Actual expenditures will vary based on the volume of transactions and length of contractual service provided.

Lam Research Corporation 2025 10-K 61

The Company’s commitments related to these agreements as of June 29, 2025, were as follows:

3 unchanged sentences

Thereafter 59,028

Purchase obligations for which timing of payment is indeterminable 64,061

Total $ 1,036,227

5 unchanged sentences

During fiscal year 2023, 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.

The Company’s remaining obligation related to this arrangement as of June 30, 2024, were as follows:

Payments Due by Fiscal Year (1) :

Transition Tax

(in thousands)

2025 $ 183,710

Total $ 413,348

The remaining obligation related to this arrangement totals $ 229.6 million and is expected to be paid in fiscal year 2026.

The Company may choose to apply existing tax credits, thereby reducing the actual cash payment.

1 unchanged sentence

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 June 30, 2024, warranty reserves totaling $ 22.3 million were reported 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 2024 10-K 64

Table of Content

As of June 29, 2025, warranty reserves totaling $ 16.7 million were reported in Other long-term liabilities, and the remainder were included in Accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets.

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

4 unchanged sentences

Settlements made during the period ( 193,817 ) ( 189,213 )

Changes in liability for warranties issued during the period ( 155 ) ( 14,270 )

Changes in liability for pre-existing warranties ( 57,466 ) ( 40,875 )

Balance at end of period $ 265,466 $ 250,404

Lam Research Corporation 2025 10-K 62

Government Assistance

29 unchanged sentences

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

Board authorization, $ 10 billion increase, May 2024

Quarter ended June 29, 2025 15,763 (2) $ 1,306,828 $ 76.18 $ 7,517,184

1 unchanged sentence

See additional disclosure below regarding the Company’s accelerated share repurchase activity during the fiscal year.

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

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

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

Lam Research Corporation 2024 10-K 65

Table of Content

(3) 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 144 thousand shares at a total cost of $ 135.9 million during the 12 months ended June 30, 2024, 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 1, 2024, the Company entered into accelerated share repurchase agreements (the "February 2024 ASRs") with two financial institutions to repurchase a total of $ 700 million of Common Stock.

The Company took an initial delivery of approximately 631 thousand shares, which represented 75 % of the prepayment amount divided by our closing stock price on February 1, 2024.

The total number of shares received under the February 2024 ASRs 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 2024 ASRs occurred during April 2024, resulting in the receipt of approximately 140 thousand additional shares, which yielded a weighted-average share price of $ 917.38 (net of applicable excise taxes) for the transaction period.

The Company recorded the February 2024 ASRs as equity transactions;

On April 30, 2025, the Company entered into accelerated share repurchase agreements (the "April 2025 ASRs") with two financial institutions to repurchase a total of $ 500 million of Common Stock.

The Company took an initial delivery of approximately 5.2 million shares, which represented 75 % of the prepayment amount divided by our closing stock price on April 30, 2025.

The total number of shares received under the April 2025 ASRs 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 April 2025 ASRs will occur no later than September 8, 2025.

The Company recorded the April 2025 ASRs as equity transactions;

as such, at the time of receipt, shares were included in treasury stock at fair market value as of the corresponding trade date.

The Company reflects shares received as a repurchase of common stock in the weighted average common shares outstanding calculation for basic and diluted earnings per share.

Lam Research Corporation 2025 10-K 63

Segment, Geographic Information, and Major Customers

2 unchanged sentences

The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution.

The Company's chief operating decision maker (“CODM”) is the Company's Chief Executive Officer.

The Company's CODM utilizes segment gross margin as the measure of profit or loss to evaluate operating segment profitability and to assess the allocation of resources.

Segment gross margin excludes both routine and non-routine expenses that are not allocated to the reportable segment, including, but not limited to, amortization of intangible assets acquired in certain business combinations, the change in value of the Company's elective deferred compensation-related liability, restructuring charges, impairment of long-lived assets, and transformational charges.

Segment results are derived from the Company's internal management reporting system utilizing policies that are substantially the same as those used for external reporting purposes.

The CODM utilizes segment revenue growth in conjunction with segment gross margin metrics in comparing forecast to actual results as well as in benchmarking to the Company's peer group.

The Company's centralized manufacturing and support organizations, including global operations and certain administrative functions, provide support to its operating segments.

Costs incurred by these organizations, as well as depreciation and amortization and equity-based compensation expense are allocated to cost of goods sold as overhead.

Consequently, depreciation and amortization and equity-based compensation expense are not independently identifiable components within the segment’s results, and, therefore are not provided.

With the exception of goodwill, the Company does not identify assets by operating segment.

Consequently, the CODM does not regularly review or receive discrete asset information by operating segment.

The table below reconciles the Company's reportable segment to income before income taxes:

2025 June 30,

2024 June 25,

(in thousands)

Revenue $ 18,435,591 $ 14,905,386 $ 17,428,516

Installation and warranty expense 544,192 435,015 647,612

Other cost of goods sold (COGS) (1)

8,675,349 6,988,338 8,688,124

Segment COGS 9,219,541 7,423,353 9,335,736

Segment gross margin 9,216,050 7,482,033 8,092,780

Reconciliation to consolidated gross margin

Restructuring charges, net — 43,375 78,166

All other COGS 236,991 385,867 237,689

Gross margin 8,979,059 7,052,791 7,776,925

Research and development 2,096,387 1,902,444 1,727,162

Selling, general, and administrative 981,704 868,247 832,753

Restructuring charges, net - operating expenses — 18,187 42,150

Other income (expense), net 57,161 96,309 ( 65,650 )

Income before income taxes $ 5,958,129 $ 4,360,222 $ 5,109,210

(1) Other COGS is primarily comprised of the capitalized cost of inventory sold, including both direct and indirect costs, but excludes installation and warranty expense and those items not allocated to the segment.

The Company operates in seven geographic regions:

3 unchanged sentences

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

Lam Research Corporation 2025 10-K 64

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

10 unchanged sentences

Total revenue $ 18,435,591 $ 14,905,386 $ 17,428,516

Lam Research Corporation 2024 10-K 66

Table of Content

2025 June 30,

10 unchanged sentences

$ 2,715,724 $ 2,462,854 $ 2,099,328

In fiscal year 2025, two customers accounted for approximately 17 % and 15 % of total revenues, respectively.

In fiscal year 2024, one customer accounted for approximately 17 % of total revenues.

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.

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

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 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 purchase price allocation related to the two business combination transactions is considered final.

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 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

Lam Research Corporation 2024 10-K 67

Table of Content

Restructuring Charges, Net

5 unchanged sentences

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.

Lam Research Corporation 2025 10-K 65

During 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.

2 unchanged sentences

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 30, 2024, net restructuring costs of $ 43.4 million and $ 18.2 million were recorded in Restructuring charges, net - cost of goods sold, and Restructuring charges, net - operating expenses, respectively in the Consolidated Statements of Operations.

No restructuring costs were recorded during the fiscal year ended June 29, 2025.

The restructuring plan is substantially complete as of June 30, 2024, and cumulative costs as of June 30, 2024 total $ 181.9 million .

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

The restructuring liability reported as of June 30, 2024 totaling $ 1.1 million was substantially satisfied in the three months ended September 29, 2024.

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

6 unchanged sentences

Restructuring liability as of June 30, 2024 $ 197 $ 896 $ 1,093

Restructuring expense 29,926 31,636 61,562

Cash payments ( 36,684 ) ( 24,045 ) ( 60,729 )

Non-cash activities ( 1,034 ) ( 6,941 ) ( 7,975 )

Restructuring liability as of June 30, 2024 $ 197 $ 896 $ 1,093

Lam Research Corporation 2025 10-K 66

Table of Content

Report of Independent Registered Public Accounting Firm

21 unchanged sentences

Lam Research Corporation 2025 10-K 67

Table of Content

Inventory - Valuation

2 unchanged sentences

Inventory in excess of management’s estimated usage requirement and obsolete inventory is written down to its estimated net realizable value if less than cost.

Auditing management’s estimates for excess and obsolete inventory involved subjective auditor judgment because management’s assessment of whether a write down is required and the measurement of any excess of cost over net realizable value is judgmental and considers a number of qualitative factors that are affected by market and economic conditions outside the Company’s control.

Auditing management’s estimates for certain excess and obsolete inventory involved subjective auditor judgment because management’s assessment of whether a write down is required and the measurement of any excess of cost over net realizable value is judgmental and considers a number of qualitative factors that are affected by market and economic conditions outside the Company’s control.

How We Addressed the Matter in Our Audit We evaluated and tested the Company’s processes and the design and operating effectiveness of internal controls addressing the identified audit risks.

8 unchanged sentences

Lam Research Corporation 2025 10-K 68

Table of Content

Report of Independent Registered Public Accounting Firm

24 unchanged sentences

Lam Research Corporation 2025 10-K 69

Table of Content

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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