KLA CORP (KLAC) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that KLA CORP surfaced in its latest filing.

• The wars between Russia and Ukraine and military conflicts in the Middle East may disrupt operations.
• The 2022 BIS Rules introduced restrictions on semiconductor, semiconductor manufacturing, supercomputer and advanced computing items, primarily affecting China-based advanced semiconductor manufacturers.2022
• The 2023 BIS Rules update export controls on advanced computing semiconductors, semiconductor manufacturing equipment, and supercomputing items to D1, D4, D5 countries including China.2023
• The 2024 BIS Rules and 2025 BIS Rules added companies to U.S. Entity List and revised definition of advanced DRAM, restricting provision of items/services to facilities producing advanced DRAM ICs in China.
• Affiliates Rule (September 2025) expanded restrictions for foreign entities 50%+ owned by listed parties on Entity List, Military End-User List, or SDN List; suspended for one year until November 2026.September 2025
• U.S. imposed base tariffs on nearly all imports into the U.S. in 2025.2025
• U.S. imposed reciprocal tariffs by country in 2025.2025
• U.S. imposed sectoral tariffs on copper, aluminum and steel in 2025.2025
• In April 2025, Commerce initiated Section 232 investigations into semiconductors including semiconductor substrates, bare wafers, legacy chips, leading-edge chips, microelectronics and other components.April 2025
• In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were not authorized.February 2026
• In February 2023, a supplier experienced a ransomware event causing shipment delays to us.February 2023
• The company is currently upgrading its ERP system, with implementation expected to be completed in the first quarter of fiscal year 2027.
• Interest rate swaps entered in 2026 convert fixed-rate payments on 2022 Senior Notes to floating-rate based on Daily Secured Overnight Financing Rate swap rate plus fixed basis points.2026
• One Big Beautiful Bill Act enacted on July 4, 2025 permanently changes U.S. tax code, including modifying GILTI and FDII rules from Tax Cuts and Jobs Act.July 4, 2025
• Chinese export controls imposed in April 2025 on seven rare earth elements.April 2025
• China imposed additional restrictions in October 2025, some effective immediately.October 2025
• As of June 30, 2026, $5.95 billion aggregate principal amount of senior, unsecured notes outstanding.June 30, 2026
• In February 2024, issued $750.0 million of senior, unsecured notes, consisting of $500.0 million of 4.700% notes due February 1, 2034 and $250.0 million of 4.950% notes due July 15, 2052.February 2024
• Credit Agreement and Revolving Credit Facility mature July 3, 2030, with two one-year extension options, allowing borrowings up to $1.50 billion.July 3, 2030
• Stock repurchase program has $9.74 billion remaining available for repurchases as of June 30, 2026.June 30, 2026
• Goodwill and purchased intangible asset impairment charges were recorded in the second quarter of fiscal 2025.