KLA Corporation

Condensed Consolidated Unaudited Statements of Cash Flows

Three months ended June 30,

(In thousands)

2022

2021

Cash flows from operating activities:

Net income

$              805,398

$              633,058

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

100,848

84,647

Unrealized foreign exchange (gain) loss and other

31,862

(6,102)

Stock-based compensation expense

36,849

27,690

Deferred income taxes

53,474

(4,787)

Gain on fair value adjustment of marketable equity securities

—

(26,719)

Settlement of treasury lock agreement

82,799

—

Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:

Accounts receivable

(192,055)

(102,021)

Inventories

(170,600)

(123,725)

Other assets

(193,341)

(63,738)

Accounts payable

19,256

48,414

Deferred system revenue

72,246

(40,900)

Deferred service revenue

48,502

35,769

Other liabilities

123,991

4,036

Net cash provided by operating activities

819,229

465,622

Cash flows from investing activities:

Business acquisitions, net of cash acquired

(8,226)

—

Capital expenditures

(73,160)

(55,375)

Proceeds from sale of assets

27,658

—

Purchases of available-for-sale securities

(254,274)

(223,619)

Proceeds from sale of available-for-sale securities

46,033

19,759

Proceeds from maturity of available-for-sale securities

235,871

163,232

Purchases of trading securities

(19,912)

(24,001)

Proceeds from sale of trading securities

20,616

26,402

Net cash used in investing activities

(25,394)

(93,602)

Cash flows from financing activities:

Proceeds from issuance of debt, net of issuance costs

2,967,409

—

Proceeds from revolving credit facility, net of costs

275,000

—

Repayment of debt

(275,000)

—

Issuance of common stock

76,102

59,742

Common stock repurchases

(2,573,589)

(299,777)

Forward contract for accelerated share repurchases

(900,000)

—

Payment of dividends to stockholders

(157,602)

(139,267)

Payment of dividends to subsidiary's non-controlling interest holders

(602)

—

Tax withholding payments related to vested and released restricted stock units

(15,423)

(13,543)

Contingent consideration payable and other, net

(21)

—

Net cash used in financing activities

(603,726)

(392,845)

Effect of exchange rate changes on cash and cash equivalents

(20,373)

3,285

Net (decrease) increase in cash and cash equivalents

169,736

(17,540)

Cash and cash equivalents at beginning of period

1,415,172

1,452,150

Cash and cash equivalents at end of period

$           1,584,908

$           1,434,610

Supplemental cash flow disclosures:

Income taxes paid, net

$              109,350

$              111,396

Interest paid

$                37,882

$                37,219

Non-cash activities:

Contingent consideration payable - financing activities

$                  1,195

$                  1,120

Dividends payable - financing activities

$                  1,653

$                  1,428

Unsettled common stock repurchase - financing activities

$                       —

$                  6,000

Accrued purchase of land, property and equipment - investing activities

$                19,595

$                30,615