Analysis of Debt
Total Debt (Carrying Amount)
Lam Research Corp., balance sheet: debt
US$ in thousands
Based on: 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), 10-K (reporting date: 2019-06-30).
The analysis of the reported debt data over the six-year period reveals several notable trends and fluctuations.
- Current Portion of Long-Term Debt and Finance Lease Obligations
- This component experienced significant variability across the period. Starting at approximately 667 million USD in mid-2019, it increased sharply to around 840 million USD by mid-2020. Subsequently, there was a dramatic decrease, reaching values as low as about 11 million USD and then 7-8 million USD in the following two years. However, the value spiked again substantially to over 500 million USD in mid-2024. This pattern suggests episodic repayments or refinancing activities affecting the current portion's size.
- Long-Term Debt and Finance Lease Obligations, Less Current Portion
- This category showed an increasing trend from about 3.8 billion USD in mid-2019 to nearly 5 billion USD by mid-2020. After this rise, the amount remained fairly stable around 5 billion USD for the three subsequent years. Notably, there was a decline to approximately 4.48 billion USD by mid-2024, indicating some reduction in the longer-term debt burden or possible repayments/refinancing strategies.
- Total Long-Term Debt and Finance Lease Obligations (Carrying Amount)
- The aggregated long-term debt initially increased from approximately 4.49 billion USD in mid-2019 to a peak of around 5.81 billion USD in mid-2020. From mid-2020 through mid-2023, the total long-term debt remained relatively stable, fluctuating slightly around 5 billion USD. By mid-2024, this total decreased modestly to about 4.98 billion USD. The observed fluctuation appears primarily influenced by changes in the current portion, with the overall long-term debt exhibiting a peak and subsequent stabilization followed by a moderate decline.
In summary, the data exhibits a peak in total long-term obligations in mid-2020, driven by increases in both current and non-current portions of debt. Following this peak, the debt levels stabilized with minor fluctuations before showing some reduction by mid-2024. The current portion of debt is particularly volatile, reflecting potential strategic refinancing, repayments, or reclassification policies impacting short-term liabilities.
Total Debt (Fair Value)
| Jun 30, 2024 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| 2060 Notes | 317,660) |
| 2050 Notes | 488,130) |
| 2049 Notes | 685,553) |
| 2041 Notes | —) |
| 2030 Notes | 632,880) |
| 2029 Notes | 961,560) |
| 2026 Notes | 731,970) |
| 2025 Notes | 494,015) |
| 2021 Notes | —) |
| 2020 Notes | —) |
| Finance lease liabilities | 15,973) |
| Build-to-suit lease | —) |
| Total long-term debt and finance lease obligations (fair value) | 4,327,741) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.87 |
Based on: 10-K (reporting date: 2024-06-30).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on long-term debt and finance lease obligations: 3.58%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.87% | 500,000) | 19,350) | |
| 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) | |
| 3.39% | 15,973) | 541) | |
| Total | 5,015,973) | 179,666) | |
| 3.58% | |||
Based on: 10-K (reporting date: 2024-06-30).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 179,666 ÷ 5,015,973 = 3.58%