Analysis of Debt
Total Debt (Carrying Amount)
KLA Corp., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
The analysis of the debt data over the reported periods reveals several notable trends and shifts in the composition and magnitude of the reported liabilities.
- Short-term debt
- Reported only in the year ended June 30, 2021, at $20,000 thousand, with no recorded balances in subsequent years. This indicates a brief presence of short-term debt that was either repaid or reclassified in later periods.
- Current portion of long-term debt
- Absent in all years except for the period ending June 30, 2024, where it appears significantly high at $749,936 thousand. The sudden appearance suggests a reclassification of long-term debt into current liabilities, likely reflecting upcoming maturities due within the next year. This reclassification impacts short-term liquidity considerations for that reporting period.
- Long-term debt, excluding current portion
- Displayed a relatively stable figure from June 2020 ($3,469,670 thousand) to June 2021 ($3,422,767 thousand). However, this was followed by a marked increase to $6,660,718 thousand in June 2022, nearly doubling the prior amounts. Subsequently, it decreased to $5,890,736 thousand in June 2023 and stabilized around $5.88 billion in the following years. This volatility may indicate new debt issuance or refinancing activities occurring in mid-2022, followed by repayments or adjustments thereafter.
- Total debt (carrying amount)
- The total debt closely mirrors the long-term debt figures with minor differences attributed to short-term borrowings and current portions of long-term debt. It rose substantially from $3,442,767 thousand in 2021 to a peak of $6,630,135 thousand in June 2024 before decreasing again in June 2025 to $5,884,257 thousand. This pattern reflects the large spikes and repayments seen in the individual debt components, confirming the shifting debt structure and timing of maturities.
Overall, the data indicates a significant restructuring or refinancing event around 2022, characterized by a sudden increase in long-term debt. The temporary classification of a large current portion in 2024 points to debt maturing within one year, with an overall reduction in total debt size seen by 2025. The absence of short-term debt except for 2021, combined with the major variations in long-term debt, suggests strategic management of debt maturity profiles and potentially shifting financing strategies over the observed periods.
Total Debt (Fair Value)
| Jun 30, 2025 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Senior Notes | 5,540,000) |
| Revolving Credit Facility | —) |
| Notes Payable | —) |
| Total debt (fair value) | 5,540,000) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.94 |
Based on: 10-K (reporting date: 2025-06-30).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 4.67%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.16% | 800,000) | 33,272) | |
| 4.66% | 1,000,000) | 46,570) | |
| 4.78% | 500,000) | 23,885) | |
| 5.67% | 250,000) | 14,175) | |
| 5.05% | 400,000) | 20,188) | |
| 3.30% | 750,000) | 24,765) | |
| 5.02% | 1,450,000) | 72,834) | |
| 5.26% | 800,000) | 42,072) | |
| Total | 5,950,000) | 277,761) | |
| 4.67% | |||
Based on: 10-K (reporting date: 2025-06-30).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 277,761 ÷ 5,950,000 = 4.67%