Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Lam Research Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Federal	541,416)	620,344)	437,525)	216,513)	143,845)	630,148)
State	32,082)	20,759)	13,560)	4,724)	5,994)	5,348)
Foreign	196,842)	204,163)	162,738)	119,766)	110,283)	132,566)
Current	770,340)	845,266)	613,823)	341,003)	260,122)	768,062)
Federal	(136,178)	(226,895)	(139,531)	(18,458)	(10,722)	12,871)
State	(2,813)	(19,096)	(8,324)	6,524)	4,944)	(3,273)
Foreign	(33,070)	(11,447)	(3,622)	(5,844)	797)	(6,552)
Deferred	(172,061)	(257,438)	(151,477)	(17,778)	(4,981)	3,046)
Provision for income taxes	598,279)	587,828)	462,346)	323,225)	255,141)	771,108)

Based on: 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), 10-K (reporting date: 2018-06-24).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Lam Research Corp. current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Lam Research Corp. deferred decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lam Research Corp. provision for income taxes increased from 2021 to 2022 and from 2022 to 2023.

Lam Research Corp., effective income tax rate (EITR) reconciliation

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	28.27%
Effective tax rate, before U.S. tax reform impacts	11.71%	11.32%	10.58%	12.55%	7.82%	-4.36%
Effective tax rate	11.71%	11.32%	10.58%	12.55%	10.43%	24.47%

Based on: 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), 10-K (reporting date: 2018-06-24).

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Item	Description	The company
Effective tax rate, before U.S. tax reform impacts	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lam Research Corp. effective tax rate, before U.S. tax reform impacts increased from 2021 to 2022 and from 2022 to 2023.

Lam Research Corp., components of deferred tax assets and liabilities

US$ in thousands

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Tax carryforwards	359,505)	315,396)	281,022)	249,874)	231,390)	206,073)
Allowances and reserves	192,374)	194,410)	165,335)	119,974)	97,671)	118,559)
Equity-based compensation	9,600)	8,845)	7,322)	7,167)	14,661)	16,189)
Inventory valuation differences	57,675)	52,323)	28,877)	26,069)	18,516)	14,021)
Prepaid cost sharing	—)	—)	—)	—)	74,139)	65,644)
Outside basis differences of foreign subsidiaries	527,139)	421,056)	193,734)	105,159)	16,260)	—)
R&D capitalization	36,618)	—)	—)	—)	—)	—)
Operating lease liabilities	50,867)	50,294)	37,562)	40,157)	—)	—)
Finance lease assets	32,905)	35,754)	—)	—)	—)	—)
Intangible assets	4,108)	889)	—)	—)	—)	—)
Other	31,773)	23,955)	22,575)	26,361)	17,972)	16,514)
Gross deferred tax assets	1,302,564)	1,102,922)	736,427)	574,761)	470,609)	437,000)
Valuation allowance	(352,377)	(308,724)	(277,133)	(244,973)	(226,928)	(199,839)
Net deferred tax assets	950,187)	794,198)	459,294)	329,788)	243,681)	237,161)
Intangible assets	—)	—)	(3,113)	(6,442)	(9,883)	(21,558)
Convertible debt	—)	—)	—)	(24,530)	(46,993)	(60,252)
Capital assets	(121,948)	(114,644)	(97,602)	(105,508)	(83,298)	(61,429)
Amortization of goodwill	(12,515)	(13,789)	(13,161)	(12,256)	(11,299)	(10,738)
Outside basis differences of foreign subsidiaries	—)	—)	—)	—)	—)	(6,656)
Right-of-use assets	(50,867)	(50,294)	(37,562)	(40,157)	—)	—)
Finance lease liabilities	(50,534)	(52,379)	—)	—)	—)	—)
Other	(1,974)	(2,395)	(262)	(7,509)	(8,752)	(7,955)
Gross deferred tax liabilities	(237,838)	(233,501)	(151,700)	(196,402)	(160,225)	(168,588)
Net deferred tax assets (liabilities)	712,349)	560,697)	307,594)	133,386)	83,456)	68,573)

Based on: 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), 10-K (reporting date: 2018-06-24).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lam Research Corp. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lam Research Corp. net deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Lam Research Corp. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Lam Research Corp., adjustments to financial statements

US$ in thousands

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Adjustment to Total Assets
Total assets (as reported)	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)	12,479,478)
Less: Noncurrent deferred tax assets, net	712,349)	560,697)	307,594)	133,386)	83,456)	68,573)
Total assets (adjusted)	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)	12,410,905)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)	6,501,851)
Less: Net deferred tax assets (liabilities)	712,349)	560,697)	307,594)	133,386)	83,456)	68,573)
Stockholders’ equity (adjusted)	7,497,823)	5,717,669)	5,719,594)	5,039,108)	4,590,409)	6,433,278)
Adjustment to Net Income
Net income (as reported)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)	2,380,681)
Add: Deferred income tax expense (benefit)	(172,061)	(257,438)	(151,477)	(17,778)	(4,981)	3,046)
Net income (adjusted)	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)	2,383,727)

Based on: 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), 10-K (reporting date: 2018-06-24).

Lam Research Corp., Financial Data: Reported vs. Adjusted

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Lam Research Corp., adjusted financial ratios

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
Net Profit Margin
Reported net profit margin	25.88%	26.73%	26.72%	22.42%	22.70%	21.49%
Adjusted net profit margin	24.90%	25.24%	25.69%	22.24%	22.65%	21.52%
Total Asset Turnover
Reported total asset turnover	0.93	1.00	0.92	0.69	0.80	0.89
Adjusted total asset turnover	0.96	1.04	0.94	0.70	0.81	0.89
Financial Leverage
Reported financial leverage	2.29	2.74	2.64	2.81	2.57	1.92
Adjusted financial leverage	2.41	2.91	2.72	2.86	2.60	1.93
Return on Equity (ROE)
Reported ROE	54.94%	73.35%	64.85%	43.53%	46.89%	36.62%
Adjusted ROE	57.87%	76.04%	65.69%	44.33%	47.63%	37.05%
Return on Assets (ROA)
Reported ROA	24.02%	26.78%	24.59%	15.47%	18.26%	19.08%
Adjusted ROA	24.01%	26.14%	24.11%	15.49%	18.35%	19.21%

Based on: 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), 10-K (reporting date: 2018-06-24).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lam Research Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lam Research Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Lam Research Corp. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Lam Research Corp. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Lam Research Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Lam Research Corp., Financial Ratios: Reported vs. Adjusted

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	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)	2,380,681)
Revenue	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)	11,076,998)
Profitability Ratio
Net profit margin¹	25.88%	26.73%	26.72%	22.42%	22.70%	21.49%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)	2,383,727)
Revenue	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)	11,076,998)
Profitability Ratio
Adjusted net profit margin²	24.90%	25.24%	25.69%	22.24%	22.65%	21.52%

Based on: 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), 10-K (reporting date: 2018-06-24).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,510,931 ÷ 17,428,516 = 25.88%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 4,338,870 ÷ 17,428,516 = 24.90%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lam Research Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenue	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)	11,076,998)
Total assets	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)	12,479,478)
Activity Ratio
Total asset turnover¹	0.93	1.00	0.92	0.69	0.80	0.89
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	17,428,516)	17,227,039)	14,626,150)	10,044,736)	9,653,559)	11,076,998)
Adjusted total assets	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)	12,410,905)
Activity Ratio
Adjusted total asset turnover²	0.96	1.04	0.94	0.70	0.81	0.89

Based on: 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), 10-K (reporting date: 2018-06-24).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 17,428,516 ÷ 18,781,643 = 0.93

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 17,428,516 ÷ 18,069,294 = 0.96

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lam Research Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)	12,479,478)
Stockholders’ equity	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)	6,501,851)
Solvency Ratio
Financial leverage¹	2.29	2.74	2.64	2.81	2.57	1.92
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)	12,410,905)
Adjusted stockholders’ equity	7,497,823)	5,717,669)	5,719,594)	5,039,108)	4,590,409)	6,433,278)
Solvency Ratio
Adjusted financial leverage²	2.41	2.91	2.72	2.86	2.60	1.93

Based on: 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), 10-K (reporting date: 2018-06-24).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 18,781,643 ÷ 8,210,172 = 2.29

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 18,069,294 ÷ 7,497,823 = 2.41

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Lam Research Corp. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)	2,380,681)
Stockholders’ equity	8,210,172)	6,278,366)	6,027,188)	5,172,494)	4,673,865)	6,501,851)
Profitability Ratio
ROE¹	54.94%	73.35%	64.85%	43.53%	46.89%	36.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)	2,383,727)
Adjusted stockholders’ equity	7,497,823)	5,717,669)	5,719,594)	5,039,108)	4,590,409)	6,433,278)
Profitability Ratio
Adjusted ROE²	57.87%	76.04%	65.69%	44.33%	47.63%	37.05%

Based on: 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), 10-K (reporting date: 2018-06-24).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,510,931 ÷ 8,210,172 = 54.94%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 4,338,870 ÷ 7,497,823 = 57.87%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Lam Research Corp. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019	Jun 24, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)	2,380,681)
Total assets	18,781,643)	17,195,632)	15,892,152)	14,559,047)	12,001,333)	12,479,478)
Profitability Ratio
ROA¹	24.02%	26.78%	24.59%	15.47%	18.26%	19.08%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	4,338,870)	4,347,848)	3,756,981)	2,233,975)	2,186,449)	2,383,727)
Adjusted total assets	18,069,294)	16,634,935)	15,584,558)	14,425,661)	11,917,877)	12,410,905)
Profitability Ratio
Adjusted ROA²	24.01%	26.14%	24.11%	15.49%	18.35%	19.21%

Based on: 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), 10-K (reporting date: 2018-06-24).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 4,510,931 ÷ 18,781,643 = 24.02%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,338,870 ÷ 18,069,294 = 24.01%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Lam Research Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Lam Research Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Lam Research Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)