Analysis of Debt
Total Debt (Carrying Amount)
Lam Research Corp., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2025-06-29), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28).
The data reveals significant fluctuations in the short-term and long-term debt components over the analyzed periods.
- Current Portion of Long-Term Debt and Finance Lease Obligations
- This item exhibits a highly variable pattern. It starts with a notably high value around June 2020, then sharply declines to much lower levels in the following two years. A slight increase occurs in June 2023, followed by a substantial surge in 2024 and an even larger value in 2025. This pattern suggests potential refinancing, restructuring, or a shift in the maturity profile of the debt, leading to increased amounts falling due within one year in the most recent periods.
- Long-Term Debt and Finance Lease Obligations, Less Current Portion
- The long-term portion, excluding the current part, remains relatively stable with minor incremental changes from 2020 through 2023, around the range of 4.97 to 5.00 billion USD. However, a notable decline is observed from 2024 onwards, with values dropping below 4.5 billion USD and further decreasing in 2025. This trend indicates a reduction in longer-dated liabilities, possibly due to repayments, refinancing into shorter terms, or early debt retirement.
- Total Long-Term Debt and Finance Lease Obligations (Carrying Amount)
- The total long-term debt and finance lease obligations mirror the overall stability seen in the period from 2021 to 2023, with amounts hovering right below or around 5 billion USD. A decrease becomes apparent starting in 2024, continuing into 2025, resulting in a significant aggregate debt reduction relative to prior years. This downward trend may reflect an overall deleveraging effort, with the company substantially lowering its total debt burden.
In summary, the company demonstrates a strategic shift in its debt structure over the years. While the long-term portion was stable initially, elevated current maturities in the later years signal modifications in debt maturity timelines. Moreover, the overall decrease in total long-term debt from 2024 onward suggests prudence towards lowering financial leverage or a possible shift in capital structure priorities.
Total Debt (Fair Value)
| Jun 29, 2025 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| 2060 Notes | 308,895) |
| 2050 Notes | 481,178) |
| 2049 Notes | 679,920) |
| 2041 Notes | —) |
| 2030 Notes | 668,018) |
| 2029 Notes | 992,260) |
| 2026 Notes | 746,618) |
| 2025 Notes | —) |
| 2021 Notes | —) |
| Finance lease liabilities | 15,141) |
| Total long-term debt and finance lease obligations (fair value) | 3,892,030) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.87 |
Based on: 10-K (reporting date: 2025-06-29).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on long-term debt: 3.55%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.86% | 750,000) | 28,950) | |
| 4.09% | 1,000,000) | 40,900) | |
| 2.01% | 750,000) | 15,075) | |
| 4.93% | 750,000) | 36,975) | |
| 2.93% | 750,000) | 21,975) | |
| 3.18% | 500,000) | 15,900) | |
| Total | 4,500,000) | 159,775) | |
| 3.55% | |||
Based on: 10-K (reporting date: 2025-06-29).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 159,775 ÷ 4,500,000 = 3.55%