Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

KLA Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Accounts payable	623,668)	458,509)	359,487)	371,026)	443,338)	342,083)
Deferred system revenue	932,901)	816,834)	985,856)	651,720)	500,969)	295,192)
Deferred service revenue	604,127)	548,011)	501,926)	416,606)	381,737)	284,936)
Short-term debt	—)	—)	—)	—)	—)	20,000)
Current portion of long-term debt	—)	—)	749,936)	—)	—)	—)
Compensation and benefits	491,108)	418,515)	371,713)	370,536)	351,924)	305,445)
Customer deposits	430,128)	636,369)	645,893)	769,000)	394,016)	—)
Executive Deferred Savings Plan (EDSP) liabilities	417,257)	350,426)	303,088)	258,223)	225,867)	268,028)
Interest payable	108,913)	110,056)	128,727)	105,270)	39,683)	36,135)
Income taxes payable	83,996)	167,262)	146,740)	383,012)	126,964)	87,320)
Current operating lease liabilities	52,937)	45,192)	36,391)	34,042)	32,218)	32,322)
Other liabilities and accrued expenses	559,892)	534,621)	431,017)	383,407)	374,367)	431,766)
Other current liabilities	2,144,231)	2,262,441)	2,063,569)	2,303,490)	1,545,039)	1,161,016)
Current liabilities	4,304,927)	4,085,795)	4,660,774)	3,742,842)	2,871,083)	2,103,227)
Long-term debt, excluding current portion	5,887,415)	5,884,257)	5,880,199)	5,890,736)	6,660,718)	3,422,767)
Deferred tax liabilities	473,648)	446,945)	486,690)	529,287)	658,937)	650,623)
Deferred service revenue	238,111)	348,844)	294,460)	176,681)	124,618)	87,575)
Income taxes payable	250,846)	221,808)	291,106)	322,113)	367,052)	333,866)
Non-current operating lease liabilities	211,361)	158,833)	153,117)	138,354)	81,369)	70,739)
Pension liabilities	43,128)	51,750)	51,778)	63,672)	78,525)	87,602)
Customer deposits	3,816)	6,823)	99,794)	156,874)	204,914)	—)
Other non-current liabilities	188,463)	170,418)	147,320)	132,045)	150,782)	139,083)
Other non-current liabilities	697,614)	609,632)	743,115)	813,058)	882,642)	631,290)
Non-current liabilities	7,296,788)	7,289,678)	7,404,464)	7,409,762)	8,326,915)	4,792,255)
Total liabilities	11,601,715)	11,375,473)	12,065,238)	11,152,604)	11,197,998)	6,895,482)
Preferred stock, $0.001 par value, none outstanding	—)	—)	—)	—)	—)	—)
Common stock, $0.001 par value	1,307)	132)	134)	137)	142)	153)
Capital in excess of par value	2,699,102)	2,511,790)	2,279,999)	2,107,526)	1,061,798)	2,175,835)
Retained earnings	3,683,864)	2,179,330)	1,137,270)	848,431)	366,882)	1,277,123)
Accumulated other comprehensive income (loss)	(34,453)	1,201)	(49,075)	(36,341)	(27,471)	(75,557)
Total KLA stockholders’ equity	6,349,820)	4,692,453)	3,368,328)	2,919,753)	1,401,351)	3,377,554)
Non-controlling interest in consolidated subsidiaries	—)	—)	—)	—)	(2,261)	(1,912)
Total stockholders’ equity	6,349,820)	4,692,453)	3,368,328)	2,919,753)	1,399,090)	3,375,642)
Total liabilities and stockholders’ equity	17,951,535)	16,067,926)	15,433,566)	14,072,357)	12,597,088)	10,271,124)

Based on: 10-K (reporting date: 2026-06-30), 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).

The financial position of the organization is characterized by a significant expansion of the balance sheet, with total liabilities and stockholders' equity growing from approximately 10.27 billion USD in 2021 to 17.95 billion USD by 2026. This growth was marked by a substantial increase in leverage in 2022, followed by a period of aggressive equity accumulation and stabilization of debt levels.

Debt Profile and Long-Term Liabilities: A sharp increase in long-term debt is observed between 2021 and 2022, where the balance rose from 3.42 billion USD to 6.66 billion USD. Following this peak, long-term debt remained relatively stable, fluctuating slightly around the 5.88 billion USD mark from 2023 through 2026. Total liabilities peaked in 2024 at 12.06 billion USD before settling at 11.60 billion USD by 2026, indicating a shift toward a more sustainable liability structure after the initial 2022 expansion.
Operational Liabilities and Deferred Revenue: There is a consistent upward trend in deferred system revenue, which increased from 295.19 million USD in 2021 to 932.90 million USD in 2026. Similarly, deferred service revenue grew across both current and non-current classifications. This expansion in deferred revenue suggests a growing backlog of obligations to customers and an increase in prepaid service contracts. Accounts payable also showed a net increase over the period, rising from 342.08 million USD in 2021 to 623.67 million USD by 2026, reflecting increased procurement activities.
Stockholders' Equity and Retained Earnings: Stockholders' equity experienced a significant contraction in 2022, dropping to 1.39 billion USD from 3.37 billion USD in 2021. However, a strong recovery followed, with equity climbing steadily to 6.34 billion USD by 2026. This recovery is primarily driven by a robust increase in retained earnings, which grew from 366.88 million USD in 2022 to 3.68 billion USD in 2026. The substantial growth in retained earnings indicates strong profitability and a strategic decision to reinvest earnings into the company's capital base.
Capital Structure and Solvency Trends: The organization's capital structure shifted from a high-leverage position in 2022 to a more equity-funded position by 2026. In 2022, total liabilities were approximately eight times the total stockholders' equity. By 2026, this ratio improved significantly, with total liabilities being approximately 1.8 times the value of stockholders' equity. This trend demonstrates a marked improvement in long-term solvency and a reduction in financial risk through the organic growth of equity.

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KLA Corp. (NASDAQ:KLAC)

Balance Sheet: Liabilities and Stockholders’ Equity