KLAC · 10-K · 2026A · Full report

Income Tax Rate Changes

KLA CORP · 2026-08-06 · Importance 58 · Surprise 56 · No source text

The effective tax rate increased to 13.8% in fiscal 2026 from 12.5% in fiscal 2025, raising tax expense to $775.2 million from $582.8 million.,The rate increase primarily reflected a lower proportion of earnings generated in jurisdictions with tax rates below U.S. statutory rates and a lower proportion of U.S. earnings eligible for the FDDEI deduction.,The increase was partially offset by lower NCTI and the absence of the prior-year $230.4 million nondeductible goodwill impairment charge, which had increased fiscal 2025 pretax income without a corresponding tax deduction.,Tax valuation allowances increased to $356.6 million at June 30, 2026 from $310.6 million, primarily for California credit carry-forwards.

Key facts

• Effective tax rate for year ended June 30, 2026: 13.8%; provision for income taxes: $775,154 (thousands); income before income taxes: $5,605,925 (thousands). source
• Tax valuation allowances of $356.6 million as of June 30, 2026 and $310.6 million as of June 30, 2025, primarily related to California credit carry-forwards. source
• Income tax payable obligation related to uncertain tax positions as of June 30, 2026: $275.3 million. source
• Unrecognized tax benefits recorded: $257.8 million for year ended June 30, 2026 and $258.6 million for year ended June 30, 2025. source

Impact estimates