filings.toolsItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Stock Information
Our Common Stock is traded on the Nasdaq Global Select MarketSM under the symbol “LRCX.” As of August 13, 2020, we had 494 stockholders of record.
Dividends
Our Board of Directors has declared quarterly dividends since April 2014. Our intent to continue to pay quarterly dividends is subject to capital availability and periodic determinations by our Board of Directors that cash dividends are in the best interest of our stockholders and are in compliance with all laws and agreements applicable to the declaration and payment of cash dividends by us. During fiscal year 2020, our quarterly dividend was $1.15 per share.
Repurchase of Company Shares
In November 2018, the Board of Directors authorized management to repurchase up to an additional $5.0 billion of Common Stock on such terms and conditions as it deems appropriate, and this authorization was announced on January 23, 2019. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. This repurchase program has no termination date and may be suspended or discontinued at any time. Funding for this share repurchase program may be through a combination of cash on hand, cash generation, and borrowings. As of June 28, 2020, we have purchased approximately $3.2 billion of shares under this authorization, $0.7 billion via open market trading and $2.5 billion utilizing accelerated share repurchase arrangements.
Accelerated Share Repurchase Agreements
On November 22, 2019, we entered into two separate accelerated share repurchase agreements (collectively, the "November 2019 ASR") with two financial institutions to repurchase a total of $1.0 billion of Common Stock. We took an initial delivery of approximately 2.9 million shares, which represented 75% of the prepayment amount divided by our closing stock price on November 22, 2019. The total number of shares received under the November 2019 ASR was based upon the average daily volume weighted average price our Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the November 2019 ASR occurred during March 2020, resulting in the receipt of approximately 705 thousand additional shares, which yielded a weighted-average share price of approximately $280.27 for the transaction period.
On June 4, 2019, we entered into four separate accelerated share repurchase agreements (collectively, the "June 2019 ASR") with two financial institutions to repurchase a total of $750 million of Common Stock. We took an initial delivery of approximately 3.1 million shares, which represented 75% of the prepayment amount divided by our closing stock price on June 4, 2019. The total number of shares received under the June 2019 ASR was based upon the average daily volume weighted average price of our Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the agreements occurred during November 2019, resulting in the receipt of approximately 361 thousand additional shares, which yielded a weighted-average share price of approximately $215.60 for the transaction period.
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Share repurchases, including those under the repurchase program, were as follows:
| Period | Total Number of Shares Repurchased (1) | Average Price Paid per Share**(2)** | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Amount Available Under Repurchase Program | |||||||||
| (in thousands, except per share data) | |||||||||||||
| Available balance as of June 30, 2019 | $ | 3,033,500 | |||||||||||
| Quarter ended September 29, 2019 | 397 | $ | 196.83 | 383 | 2,958,304 | ||||||||
| Quarter ended December 29, 2019 | 3,242 | $ | 265.88 | 3,224 | 1,957,829 | ||||||||
| Quarter ended March 29, 2020 | 1,576 | $ | 281.93 | 1,239 | 1,811,432 | ||||||||
| March 30, 2020 - April 26, 2020 | 3 | $ | 261.24 | — | 1,811,432 | ||||||||
| April 27, 2020 - May 24, 2020 | 134 | $ | 260.59 | 129 | 1,777,649 | ||||||||
| May 25, 2020 - June 28, 2020 | 19 | $ | 267.31 | 16 | 1,773,427 | ||||||||
| Total | 5,371 | $ | 261.44 | 4,991 | $ | 1,773,427 |
| (1) | During the fiscal year ended June 28, 2020, we acquired 380 thousand shares at a total cost of $109.6 million which we withheld through net share settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under our equity compensation plans. The shares retained by us through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under our equity compensation plan. |
| (2) | Average price paid per share excludes effect of accelerated share repurchases, see additional disclosure above regarding our accelerated share repurchase activity during the fiscal year. |
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Lam Research Corporation 2020 10-K 30
Cumulative Five-Year Return
The graph below compares Lam Research Corporation’s cumulative five-year total shareholder return on Common Stock with the cumulative total returns of the Philadelphia Semiconductor Sector Total Return Index, the Nasdaq Composite Total Return index, and the Standard & Poor’s (“S&P”) 500 (TR) index. The graph tracks the performance of a $100 investment in our Common Stock and in each of the indices (with the reinvestment of all dividends) for the five years ended June 28, 2020.
| COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN* | |||
| Among Lam Research Corporation, the Philadelphia Semiconductor Sector Total Return Index, the Nasdaq Composite Total Return Index, and the S&P 500 (TR) Index. |
*$100 invested on June 28, 2015 in stock or June 30, 2015 in index, including reinvestment of dividends. Indexes calculated on month-end basis.
Copyright © 2020 Standard & Poor’s, a division of S&P Global. All rights reserved.
| June 28, 2015 | June 26, 2016 | June 25, 2017 | June 24, 2018 | June 30, 2019 | June 28, 2020 | ||||||||||||||||||
| Lam Research Corporation | $ | 100.00 | $ | 100.88 | $ | 188.74 | $ | 220.13 | $ | 242.99 | $ | 398.42 | |||||||||||
| Philadelphia Semiconductor Sector Total Return Index | $ | 100.00 | $ | 103.77 | $ | 157.95 | $ | 203.93 | $ | 231.07 | $ | 321.96 | |||||||||||
| Nasdaq Composite Total Return Index | $ | 100.00 | $ | 98.32 | $ | 126.14 | $ | 155.91 | $ | 168.04 | $ | 213.32 | |||||||||||
| S&P 500 (TR) Index | $ | 100.00 | $ | 103.99 | $ | 122.60 | $ | 140.23 | $ | 154.83 | $ | 166.45 |
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