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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
or
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number 000-09992
KLA CORPORATION
(Exact name of registrant as specified in its charter)
  
Delaware 04-2564110
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
One Technology Drive,Milpitas,California95035
(Address of Principal Executive Offices)(Zip Code)
(408) 875-3000
(Registrant’s telephone number, including area code) 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareKLACThe Nasdaq Stock Market, LLC
The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer 
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No  
As of October 18, 2021, there were 151,622,165 shares of the registrant’s Common Stock, $0.001 par value per share, outstanding.


Table of Contents
INDEX
 
  Page
Number
PART IFINANCIAL INFORMATION
Item 1
6
Item 2
Item 3
Item 4
PART IIOTHER INFORMATION
Item 1
Item 1A
Item 2
Item 3
Item 4
Item 5
Item 6


 
2

Table of Contents
PART I. FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS
KLA CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
 
(In thousands)September 30,
2021
June 30,
2021
ASSETS
Current assets:
Cash and cash equivalents$1,509,564 $1,434,610 
Marketable securities1,115,249 1,059,912 
Accounts receivable, net1,463,974 1,305,479 
Inventories1,715,339 1,575,380 
Other current assets340,546 320,867 
Total current assets6,144,672 5,696,248 
Land, property and equipment, net698,547 663,027 
Goodwill2,041,338 2,011,172 
Deferred income taxes665,672 270,461 
Purchased intangible assets, net1,157,535 1,185,311 
Other non-current assets438,713 444,905 
Total assets$11,146,477 $10,271,124 
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$380,827 $342,083 
Deferred system revenue319,846 295,192 
Deferred service revenue286,741 284,936 
Short-term debt20,000 20,000 
Other current liabilities1,515,596 1,161,016 
Total current liabilities2,523,010 2,103,227 
Non-current liabilities:
Long-term debt3,423,436 3,422,767 
Deferred tax liabilities625,540 650,623 
Deferred service revenue94,824 87,575 
Other non-current liabilities620,581 631,290 
Total liabilities7,287,391 6,895,482 
Commitments and contingencies (Notes 9, 14 and 15)
Stockholders’ equity:
Common stock and capital in excess of par value2,137,706 2,175,988 
Retained earnings1,801,268 1,277,123 
Accumulated other comprehensive income (loss)(78,044)(75,557)
Total KLA stockholders’ equity3,860,930 3,377,554 
Non-controlling interest in consolidated subsidiaries(1,844)(1,912)
Total stockholders’ equity3,859,086 3,375,642 
Total liabilities and stockholders’ equity$11,146,477 $10,271,124 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
3

Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended September 30,
(In thousands, except per share amounts)20212020
Revenues:
Product$1,629,888 $1,145,495 
Service453,950 393,125 
Total revenues2,083,838 1,538,620 
Costs and expenses:
Costs of revenues813,624 620,562 
Research and development258,153 219,038 
Selling, general and administrative193,261 172,631 
Interest expense38,312 39,386 
Other expense (income), net14,140 3,197 
Income before income taxes766,348 483,806 
Provision (benefit) for income taxes(302,137)63,664 
Net income1,068,485 420,142 
Less: Net income (loss) attributable to non-controlling interest68 (425)
Net income attributable to KLA$1,068,417 $420,567 
Net income per share attributable to KLA
Basic$7.01 $2.71 
Diluted$6.96 $2.69 
Weighted-average number of shares:
Basic152,330 155,281 
Diluted153,410 156,442 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
4

Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended September 30,
(In thousands)20212020
Net income $1,068,485 $420,142 
Other comprehensive income (loss):
Currency translation adjustments:
Cumulative currency translation adjustments(2,755)5,440 
Income tax (provision) benefit317 (403)
Net change related to currency translation adjustments(2,438)5,037 
Cash flow hedges:
Net unrealized gains (losses) arising during the period852 (918)
Reclassification adjustments for net (gains) losses included in net income(1,218)(54)
Income tax (provision) benefit(61)208 
Net change related to cash flow hedges(427)(764)
Net change related to unrecognized losses and transition obligations in connection with defined benefit plans628 (3,119)
Available-for-sale securities:
Net unrealized gains (losses) arising during the period(317)(951)
Reclassification adjustments for net (gains) losses included in net income(1)(101)
Income tax benefit68 226 
Net change related to available-for-sale securities(250)(826)
Other comprehensive income (loss)(2,487)328 
Less: Comprehensive income (loss) attributable to non-controlling interest68 (425)
Total comprehensive income attributable to KLA$1,065,930 $420,895 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
5

Table of Contents
KLA CORPORATION
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
Common Stock and
Capital in Excess of
Par Value
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Total KLA
Stockholders’
Equity
Non-
Controlling
Interest
Total
Stockholders’
Equity
(In thousands, except per share amounts)SharesAmount
Balances as of June 30, 2021152,776 $2,175,988 $1,277,123 $(75,557)$3,377,554 $(1,912)$3,375,642 
Net income attributable to KLA— — 1,068,417 — 1,068,417 — 1,068,417 
Net loss attributable to non-controlling interest— — — — — 68 68 
Other comprehensive income — — — (2,487)(2,487)— (2,487)
Net issuance under employee stock plans160 (46,532)— — (46,532)— (46,532)
Repurchase of common stock(1,190)(16,966)(382,711)— (399,677)— (399,677)
Cash dividends ($1.05 per share) and dividend equivalents declared
— — (161,561)— (161,561)— (161,561)
Stock-based compensation expense— 25,216 — — 25,216 25,216 
Balances as of September 30, 2021151,746 $2,137,706 $1,801,268 $(78,044)$3,860,930 $(1,844)$3,859,086 

Common Stock and
Capital in Excess of
Par Value
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Total KLA
Stockholders’
Equity
Non-
Controlling
Interest
Total
Stockholders’
Equity
(In thousands, except per share amounts)SharesAmount
Balances as of June 30, 2020155,461 $2,090,268 $654,930 $(79,774)$2,665,424 $15,586 $2,681,010 
Adoption of ASC 326 — — (5,530)— (5,530)— (5,530)
Net income attributable to KLA— — 420,567 — 420,567 — 420,567 
Net loss attributable to non-controlling interest— — — — — (425)(425)
Other comprehensive income — — — 328 328 — 328 
Net issuance under employee stock plans172 (25,145)— — (25,145)— (25,145)
Repurchase of common stock(1,027)(19,400)(174,497)— (193,897)— (193,897)
Cash dividends ($0.90 per share) and dividend equivalents declared
— — (141,555)— (141,555)— (141,555)
Stock-based compensation expense— 26,992 — — 26,992 — 26,992 
Balances as of September 30, 2020154,606 $2,072,715 $753,915 $(79,446)$2,747,184 $15,161 $2,762,345 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
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KLA CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended September 30,
(In thousands)20212020
Cash flows from operating activities:
Net income$1,068,485 $420,142 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization84,824 80,066 
Unrealized foreign exchange (gain) loss and other15,639 (12,907)
Asset impairment charges5,962 865 
Stock-based compensation expense25,216 26,992 
Deferred income taxes(427,970)(14,967)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable(180,354)73,000 
Inventories(138,189)(85,991)
Other assets4,673 20,070 
Accounts payable41,868 (9,822)
Deferred system revenue33,469 (82,633)
Deferred service revenue4,912 (3,646)
Other liabilities325,262 101,002 
Net cash provided by operating activities863,797 512,171 
Cash flows from investing activities:
Proceeds from sale of assets 1,114 
Business acquisitions, net of cash acquired(37,986) 
Capital expenditures(68,955)(55,925)
Purchases of available-for-sale securities(264,000)(231,821)
Proceeds from sale of available-for-sale securities14,954 53,249 
Proceeds from maturity of available-for-sale securities178,414 95,835 
Purchases of trading securities(22,896)(18,630)
Proceeds from sale of trading securities25,163 21,244 
Proceeds from other investments 614 
Net cash used in investing activities(175,306)(134,320)
Cash flows from financing activities:
Proceeds from revolving credit facility300,000  
Repayment of debt(300,000)(50,000)
Common stock repurchases(399,677)(187,897)
Payment of dividends to stockholders(162,821)(141,164)
Tax withholding payments related to vested and released restricted stock units(46,532)(25,145)
Net cash used in financing activities(609,030)(404,206)
Effect of exchange rate changes on cash and cash equivalents(4,507)7,766 
Net increase (decrease) in cash and cash equivalents74,954 (18,589)
Cash and cash equivalents at beginning of period1,434,610 1,234,409 
Cash and cash equivalents at end of period$1,509,564 $1,215,820 
Supplemental cash flow disclosures:
Income taxes paid$57,532 $54,185 
Interest paid$39,717 $40,071 
Non-cash activities:
Contingent consideration (receivable) payable - financing activities$12,810 $(2,987)
Dividends payable - financing activities$1,783 $1,660 
Unsettled common stock repurchase - financing activities$5,999 $6,000 
Accrued purchases of land, property and equipment - investing activities$22,962 $23,388 
See accompanying notes to Condensed Consolidated Financial Statements (unaudited).
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KLA CORPORATION
Notes to Condensed Consolidated Financial Statements
(Unaudited)

NOTE 1 – BASIS OF PRESENTATION
Basis of Presentation. For purposes of this report, “KLA,” the “Company,” “we,” “our,” “us,” or similar references mean KLA Corporation and its majority-owned subsidiaries unless the context requires otherwise. The Condensed Consolidated Financial Statements have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations.
The unaudited interim Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for audited financial statements. The balance sheet as of June 30, 2021 was derived from the Company’s audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 but does not include all disclosures required by GAAP for audited financial statements. The unaudited interim Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair statement of the financial position, results of operations, comprehensive income, stockholders’ equity and cash flows for the periods indicated. These Condensed Consolidated Financial Statements and notes, however, should be read in conjunction with Item 8 “Financial Statements and Supplementary Data” included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021.
The Condensed Consolidated Financial Statements include the accounts of KLA and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.
The results of operations for the three months ended September 30, 2021 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year ending June 30, 2022.
Management Estimates. The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in applying our accounting policies that affect the reported amounts of assets and liabilities (and related disclosure of contingent assets and liabilities) at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses for the reporting periods. Actual results could differ from those estimates.
Significant Accounting Policies. There have been no material changes to our significant accounting policies summarized in Note 1 “Description of Business and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021.
Recent Accounting Pronouncements
The Company continues to monitor new accounting pronouncements issued by the Financial Accounting Board (“FASB”) and does not believe any accounting pronouncements issued through the date of this report will have an impact on the Company’s Condensed Consolidated Financial Statements.
Recently Adopted
In December 2019, the FASB issued an Accounting Standards Update (“ASU”) to simplify the accounting for income taxes in Accounting Standard Codification (“ASC”) 740, Income Taxes (“ASC 740”). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in ASC 740. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2022 on a prospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements.
In August 2020, the FASB issued an ASU to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard eliminates beneficial conversion features and cash conversion models resulting in more convertible instruments being accounted for as a single unit; and modifies the guidance on the computation of earnings per share for convertible instruments and contracts on an entity’s own equity. We adopted this update beginning in the first quarter of our fiscal year ending June 30, 2022 on a modified retrospective basis and the adoption had no material impact on our Condensed Consolidated Financial Statements.
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NOTE 2 – REVENUE
Contract Balances
The following table represents the opening and closing balances of accounts receivable, net, contract assets and contract liabilities as of the indicated dates.
As ofAs of
(Dollar amounts in thousands)September 30, 2021June 30, 2021$ Change% Change
Accounts receivable, net$1,463,974 $1,305,479 $158,495 12 %
Contract assets$94,877 $91,052 $3,825 4 %
Contract liabilities$701,411 $667,703 $33,708 5 %
Our payment terms and conditions vary by contract type, although the terms generally include a requirement of payment of 70% to 90% of total contract consideration within 30 to 60 days of product shipment, with the remainder payable within 30 days of acceptance.
The change in contract assets during the three months ended September 30, 2021 was mainly due to $37.8 million of contract assets reclassified to net accounts receivable as our right to consideration for these contract assets became unconditional, partially offset by $41.6 million of revenue recognized for which the payment is subject to conditions other than passage of time. Contract assets are included in Other current assets on our Condensed Consolidated Balance Sheets.
The change in contract liabilities during the three months ended September 30, 2021 was mainly due to the recognition in revenue of $303.0 million that was included in contract liabilities as of July 1, 2021, partially offset by the value of products and services billed to customers for which control of the products and service has not transferred to the customers. The change in contract liabilities during the three months ended September 30, 2020 was mainly due to the recognition in revenue of $314.8 million that was included in contract liabilities as of July 1, 2020, partially offset by the value of products and services billed to customers for which control of the products and service has not transferred to the customers. Contract liabilities are included in current and non-current liabilities on our Condensed Consolidated Balance Sheets.

Remaining Performance Obligations
As of September 30, 2021, we had $6.25 billion of remaining performance obligations, which represents our obligation to deliver products and services, and consists primarily of sales orders where written customer requests have been received. We expect to recognize approximately 5% to 15% of these performance obligations as revenue beyond the next 12 months, which percentages could increase as a result of capacity and supply chain constraints, customer pushouts or cancellations, or other factors resulting in product shipment or installation delays.
Refer to Note 18 “Segment Reporting and Geographic Information” to our Condensed Consolidated Financial Statements for information related to revenues by geographic region as well as significant product and service offerings.
NOTE 3 – FAIR VALUE MEASUREMENTS
Our financial assets and liabilities are measured and recorded at fair value, except for our debt and certain equity investments in privately held companies. Equity investments without a readily available fair value are accounted for using the measurement alternative. The measurement alternative is calculated as cost minus impairment, if any, plus or minus changes resulting from observable price changes.
Our non-financial assets, such as goodwill, intangible assets, and land, property and equipment, are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred.
Fair Value of Financial Instruments. We have evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of our cash equivalents, accounts receivable, accounts payable and other current assets and liabilities approximate their carrying amounts due to the relatively short maturity of these items.
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Fair Value Hierarchy. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1  Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2  Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
Level 3  Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
The types of instruments valued based on quoted market prices in active markets include money market funds, certain U.S. Treasury securities, U.S. Government agency securities and equity securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.
The types of instruments valued based on other observable inputs include corporate debt securities, sovereign securities, municipal securities, and certain U.S. Treasury securities. The market inputs used to value these instruments generally consist of market yields, reported trades and broker/dealer quotes. Such instruments are generally classified within Level 2 of the fair value hierarchy.
The principal market in which we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants generally are large financial institutions. Our foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy.
The fair values of deferred payments and contingent consideration payable, the majority of which were recorded in connection with business combinations, were classified as Level 3 and estimated using significant inputs that were not observable in the market. See Note 6 “Business Combinations” to our Condensed Consolidated Financial Statements for additional information.
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Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the date indicated below, were presented on our Condensed Consolidated Balance Sheets as follows:
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsLittle or No Market Activity Inputs
As of September 30, 2021 (In thousands)Total (Level 1) (Level 2) (Level 3)
Assets
Cash equivalents:
Money market funds and other$690,579 $690,579 $ $ 
Marketable securities:
Corporate debt securities467,529  467,529  
Municipal securities70,892  70,892  
Sovereign securities5,049  5,049  
U.S. Government agency securities126,147 126,147   
U.S. Treasury securities247,764 241,815 5,949  
Equity securities(1)
18,653 18,653   
Total cash equivalents and marketable securities(2)
1,626,613 1,077,194 549,419  
Other current assets:
Derivative assets10,156  10,156  
Other non-current assets:
Executive Deferred Savings Plan262,042 199,933 62,109  
Total financial assets(2)
$1,898,811 $1,277,127 $621,684 $ 
Liabilities
Derivative liabilities$(4,348)$ $(4,348)$ 
Deferred payments(4,625)  (4,625)
Contingent consideration payable(21,324)  (21,324)
Total financial liabilities$(30,297)$ $(4,348)$(25,949)
________________
(1) Transfer from Level 2 to Level 1 as the security-specific restriction expired during the three months ended September 30, 2021.
(2) Excludes cash of $747.6 million held in operating accounts and time deposits of $250.6 million (of which $71.3 million were cash equivalents) as of September 30, 2021.
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Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the date indicated below, were presented on our Condensed Consolidated Balance Sheets as follows:  
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsLittle or No Market Activity Inputs
As of June 30, 2021 (In thousands)Total(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents:
Money market funds and other$691,375 $691,375 $ $ 
Marketable securities:
Corporate debt securities468,746  468,746  
Municipal securities70,228  70,228  
Sovereign securities3,052  3,052  
U.S. Government agency securities145,921 145,921   
U.S. Treasury securities233,064 205,055 28,009  
Equity securities29,930  29,930  
Total cash equivalents and marketable securities(1)
1,642,316 1,042,351 599,965  
Other current assets:
Derivative assets8,252  8,252  
Other non-current assets:
Executive Deferred Savings Plan266,199 200,925 65,274  
Total financial assets(1)
$1,916,767 $1,243,276 $673,491 $ 
Liabilities
Derivative liabilities$(2,807)$ $(2,807)$ 
Deferred payments(4,550)  (4,550)
Contingent consideration payable(8,514)  (8,514)
Total financial liabilities$(15,871)$ $(2,807)$(13,064)
________________
(1) Excludes cash of $641.6 million held in operating accounts and time deposits of $210.6 million (of which $101.7 million were cash equivalents) as of June 30, 2021.
Besides the transfer listed above, there were no other transfers between Level 1, Level 2 and Level 3 fair value measurements during the three months ended September 30, 2021.
See Note 8 “Debt” to our Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes.

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NOTE 4 – FINANCIAL STATEMENT COMPONENTS
Condensed Consolidated Balance Sheets
As ofAs of
(In thousands)September 30, 2021June 30, 2021
Accounts receivable, net:
Accounts receivable, gross$1,481,868 $1,323,515 
Allowance for credit losses(17,894)(18,036)
$1,463,974 $1,305,479 
Inventories:
Customer service parts$348,913 $349,743 
Raw materials696,314 595,151 
Work-in-process426,855 453,432 
Finished goods243,257 177,054 
$1,715,339 $1,575,380 
Other current assets:
Prepaid expenses$112,592 $76,649 
Contract assets94,877 91,052 
Deferred costs of revenues69,865 59,953 
Prepaid income and other taxes23,893 68,847 
Other current assets39,319 24,366 
$340,546 $320,867 
Land, property and equipment, net:
Land$67,862 $67,862 
Buildings and leasehold improvements463,865 458,605 
Machinery and equipment745,877 743,710 
Office furniture and fixtures32,029 32,856 
Construction-in-process215,038 182,320 
1,524,671 1,485,353 
Less: accumulated depreciation(826,124)(822,326)
$698,547 $663,027 
Other non-current assets:
Executive Deferred Savings Plan(1)
$262,041 $266,199 
Operating lease right of use assets99,616 102,883 
Other non-current assets77,056 75,823 
$438,713 $444,905 
Other current liabilities:
Customer credits and advances$421,928 $250,784 
Compensation and benefits421,677 305,445 
Executive Deferred Savings Plan264,740 268,028 
Other accrued expenses177,045 180,982 
Income taxes payable162,494 87,320 
Interest payable34,766 36,135 
Operating lease liabilities32,946 32,322 
$1,515,596 $1,161,016 
Other non-current liabilities:
Income taxes payable$314,623 $333,866 
Pension liabilities86,817 87,602 
Operating lease liabilities65,940 70,739 
Other non-current liabilities153,201 139,083 
$620,581 $631,290 
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________________
(1)We have a non-qualified deferred compensation plan (known as “Executive Deferred Savings Plan” or “EDSP”) under which certain employees and non-employee directors may defer a portion of their compensation. The expense (benefit) associated with changes in