KLA Corporation

Condensed Consolidated Unaudited Statements of Cash Flows

Three Months Ended March 31,

(In thousands)

2023

2022

Cash flows from operating activities:

Net income

$

697,837

$

730,660

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

Depreciation and amortization

104,854

92,127

Unrealized foreign exchange (gain) loss and other

(16,531)

(7,059)

Stock-based compensation expense

48,130

37,087

Deferred income taxes

(66,596)

(11,747)

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

Accounts receivable

342,090

126,414

Inventories

(211,216)

(156,513)

Other assets

(60,973)

(25,972)

Accounts payable

(119,606)

41,797

Deferred system revenue

(1,765)

(4,734)

Deferred service revenue

5,332

47,748

Other liabilities

289,299

(50,930)

Net cash provided by operating activities

1,010,855

818,878

Cash flows from investing activities:

Business acquisitions, net of cash acquired

—

(432,901)

Capital expenditures

(84,914)

(100,304)

Purchases of available-for-sale securities

(402,672)

(207,546)

Proceeds from sale of available-for-sale securities

37,786

26,713

Proceeds from maturity of available-for-sale securities

345,972

151,724

Purchases of trading securities

(40,176)

(43,000)

Proceeds from sale of trading securities

30,797

35,820

Net cash used in investing activities

(113,207)

(569,494)

Cash flows from financing activities:

Proceeds from revolving credit facility

—

300,000

Repayment of debt

(225,000)

(45,000)

Common stock repurchases

(478,186)

(564,666)

Payment of dividends to stockholders

(180,854)

(158,976)

Tax withholding payments related to vested and released restricted stock units

(16,154)

(16,661)

Contingent consideration payable and other, net

(2,527)

(1,100)

Net cash used in financing activities

(902,721)

(486,403)

Effect of exchange rate changes on cash and cash equivalents

2,109

(4,866)

Net decrease in cash and cash equivalents

(2,964)

(241,885)

Cash and cash equivalents at beginning of period

1,571,477

1,657,057

Cash and cash equivalents at end of period

$

1,568,513

$

1,415,172

Supplemental cash flow disclosures:

Income taxes paid, net

$

56,779

$

128,233

Interest paid

$

125,055

$

40,020

Non-cash activities:

Contingent consideration payable - financing activities

$

(75)

$

423

Dividends payable - financing activities

$

1,915

$

1,638

Unsettled common stock repurchase - financing activities

$

15,943

$

6,000

Accrued purchase of land, property and equipment - investing activities

$

14,390

$

22,305