UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 11-K

 

(Mark One)

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006

o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

A.

Full title of the plan and the address of the plan, if different from that of the issuer named below:

B.

Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

 

SAVINGS PLUS PLAN,
LAM RESEARCH 401(k)

TABLE OF CONTENTS

		Page No.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			1
Financial Statements:
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS			2
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS			3
NOTES TO FINANCIAL STATEMENTS			4
Supplemental Schedule as of December 31, 2006:
SCHEDULE H, LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)			9
SIGNATURES			10
EXHIBIT INDEX
EXHIBIT 23.1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Plan Administrator of the
Savings Plus Plan,
Lam Research 401(k)

We have audited the financial statements of the Savings Plus Plan, Lam Research 401(k) (the Plan) as of December 31, 2006 and 2005, and for the year ended December 31, 2006, as listed in the accompanying table of contents. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Plan’s management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2006 and 2005, and the changes in net assets available for benefits for the year ended December 31, 2006, in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule, as listed in the accompanying table of contents, is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Mohler, Nixon & Williams
MOHLER, NIXON & WILLIAMS
Accountancy Corporation
Campbell, California
June 22, 2007

SAVINGS PLUS PLAN,
LAM RESEARCH 401(k)

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

		December 31,
		2006				2005
Assets:
Investments, at fair value		$	223,209,915			$	190,327,702
Participant loans			2,063,553				2,288,875
Assets held for investment purposes			225,273,468				192,616,577
Employer contribution receivable			169,551				—
Dividends receivable			715,263				—
Total assets			226,158,282				192,616,577
Liabilities:
Other liabilities			3,070				4,466
Net assets available for benefits		$	226,155,212			$	192,612,111

See notes to financial statements.

SAVINGS PLUS PLAN,
LAM RESEARCH 401(k)

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the year ended December 31, 2006

Additions to net assets attributed to:
Investment income:
Dividends and interest		$	7,988,215
Net realized and unrealized appreciation in fair value of investments			17,381,404
			25,369,619
Contributions:
Participants’			14,899,799
Employer’s			3,996,362
			18,896,161
Total additions			44,265,780
Deductions from net assets attributed to:
Withdrawals and distributions			10,588,237
Administrative expenses			134,442
Total deductions			10,722,679
Net increase in net assets			33,543,101
Net assets available for benefits:
Beginning of year			192,612,111
End of year		$	226,155,212

See notes to financial statements.

SAVINGS PLUS PLAN,
LAM RESEARCH 401(k)

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006 AND 2005

NOTE 1 — THE PLAN AND ITS SIGNIFICANT ACCOUNTING POLICIES

General — The following description of the Savings Plus Plan, Lam Research 401(k) (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

The Plan is a defined contribution plan that was established in 1985 by Lam Research Corporation (the Company) to provide benefits to eligible employees, as defined in the Plan document. The Plan is currently designed to be qualified under the applicable requirements of the Internal Revenue Code, as amended, and the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

Administration — The Company and the Plan Committee (the Committee) manage the operation and administration of the Plan. A third-party administrator processes and maintains the records of participant data. From April 1, 2006 through December 31, 2006, MG Trust Company, L.L.C. (MG Trust) acted as the trustee and custodian. From January 1, 2006 through March 31, 2006 and during 2005, American Stock Transfer and Trust Company (AST) acted as the trustee and custodian. Substantially all expenses incurred for administering the Plan are paid by the Plan, unless paid by the Company.

Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Basis of accounting — The financial statements of the Plan are prepared on the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America.

As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP), effective for the Plan year ending after December 15, 2006, applied retroactively for all periods presented, investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attributable for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The FSP requires that the statement of net assets available for benefits be presented at fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Plan’s investment contract accounts in the Metlife Stable Value Account are fully benefit-responsive and, therefore, have been reported in the financial statements at contract value. The fair value of the Plan’s investment contract accounts approximate the contract value at December 31, 2006 and 2005.

Investments — Investments of the Plan are held by MG Trust (AST prior to April 1, 2006) and are invested based solely upon instructions received from participants.

The Plan’s investments are valued at fair value as of the last day of the Plan year, as measured by quoted market prices. Participant loans are valued at cost, which approximates fair value.

Cash and cash equivalents — All highly liquid investments purchased with an original maturity of three months or less (generally money market funds) are considered to be cash equivalents. These investments are usually held for a short period of time, pending long-term investment.

Income taxes — The Plan has been amended since receiving its favorable determination letter dated January 21, 2004. The Plan is operated in accordance with, and is intended to qualify under, the applicable requirements of the Internal Revenue Code and related state statutes, and the trust, which forms a part of the Plan, is intended to be exempt from federal income and state franchise taxes.

Reconciliation of financial statements to Form 5500 — The differences between the information reported in the financial statements and the information reported in the Form 5500 arise primarily from the reporting of benefits payable in the Form 5500 of approximately $11,000 at December 31, 2005.

Risks and uncertainties — The Plan provides for various investment options in any combination of investment securities offered by the Plan. In addition, Company common stock is included as an investment under the Plan. The percentage of individual participant’s contributions in Company common stock is limited to not exceed 25%. Investment securities are exposed to various risks, such as interest rate, market fluctuations and credit risks. Due to the risk associated with certain investment securities, it is at least reasonably possible that changes in market values, interest rates or other factors in the near term would materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits and the statement of changes in net assets available for benefits.

NOTE 2 — RELATED PARTY AND PARTY-IN-INTEREST TRANSACTIONS

Participants may elect to invest a portion of their accounts in the common stock of the Company. The aggregate investment in Company common stock at December 31, 2006 and 2005 was as follows:

		2006				2005
Number of shares			158,844				204,518
Fair value			8,040,683				7,297,202

NOTE 3 — PARTICIPATION AND BENEFITS

Participant contributions — From September 1, 2006 through December 31, 2006, participants could elect to contribute from 2% to 75% of their Eligible Compensation, as defined by the Plan, per payroll period not to exceed the amount allowable under current income tax regulations. From January 1, 2006 through August 31, 2006 and during 2005, participants could elect to contribute from 2% to 20% of their Eligible Compensation, as defined by the Plan, per payroll period not to exceed the amount allowable under current income tax regulations. Participants who elect to contribute a portion of their eligible compensation to the Plan agree to accept an equivalent reduction in taxable compensation. Contributions withheld are invested in accordance with the participants’ direction.

Participants are also allowed to make rollover contributions of amounts received from other tax-qualified employer-sponsored retirement plans. Such contributions are

deposited in the appropriate investment funds in accordance with the participants’ direction and the Plan’s provisions.

Employer contributions — The Company may make matching contributions as defined in the Plan and as approved by the Board of Directors. In 2006, the Company matched 50% of each eligible participant’s salary deferral contribution (excluding catch-up contributions) up to a maximum of the first 6% of the participant’s eligible compensation on a per payroll period basis. Pursuant to a Plan amendment, beginning in 2006, if a participant, who is active at the end of the year and at the time of deposit, made the maximum contribution allowed by law ($15,000 during 2006) but, due to the timing of the participant’s contributions, did not receive the full 50% Company match, the Company provided a year end “true up” contribution to provide such participants with the 50% that they would have received had the timing of their contributions not limited the Company match. The Plan also allows for a discretionary profit sharing contribution. No discretionary contribution was made for the year ended December 31, 2006.

Vesting — Participants are immediately vested in their entire account, including employer matching and discretionary profit sharing contributions (if any).

Participant accounts — Each participant’s account is credited with the participant’s contribution, Plan earnings or losses in funds selected by the participant, and an allocation of the Company’s contribution, if any. Allocation of the Company’s contribution is based on participant contributions and / or compensation, as defined in the Plan.

Payment of benefits — Upon termination, each participant (or beneficiary) may elect to leave his or her account balance in the Plan until age 70 ¹ / 2 or receive his or her total benefits in a lump sum amount equal to the value of the participant’s account, in installments over a period of years, or over a term certain under a non-transferable annuity contract. The Plan requires lump sum distribution of participant account balances that do not exceed $1,000.

Loans to participants — The Plan allows participants to borrow not less than $1,000 and up to the lesser of $50,000 or 50% of their account balance. The loans are secured by the participant’s balance reduced by certain balances of outstanding or defaulted loans. Such loans bear interest at the available market financing rates and must be repaid to the Plan within a five-year period, unless the loan is used for the purchase of a principal residence in which case the maximum repayment period is 15 years. The specific terms and conditions of such loans are established by the Committee. Outstanding loans at December 31, 2006 carry interest rates ranging from 5.0% to 10.5%.

NOTE 4 — INVESTMENTS

The following table presents the fair values of investments and investment funds that include 5% or more of the Plan’s net assets at December 31:

		2006				2005
Fidelity Advisor Funds:
Value Strategies Fund			21,174,387				20,159,193
Overseas Fund			—				14,318,856
MFS Value Fund			30,124,331				24,581,875
Franklin Small Mid Cap Growth Fund			20,645,795				19,451,357
Metlife Stable Value Account			29,568,406				26,076,225
Vanguard Institutional Index Fund			25,851,822				21,899,851
American Funds Amcap Fund			19,152,384				17,187,200
Dodge and Cox International Stock Fund			24,192,037				—
Other Funds individually less than 5% of net assets			54,564,306	*			48,942,020	**
Assets held for investment purposes			225,273,468				192,616,577

The Plan’s investment contract accounts in the Metlife Stable Value Account are fully-benefit responsive and, therefore, have been reported in the financial statements at contract value. The fair value of the Plan’s investment contract accounts approximate the contract value at December 31, 2006 and 2005.

The Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows for the year ended December 31, 2006:

Mutual funds		$	14,447,260
Common stock			2,972,508
Bonds			(38,364	)
		$	17,381,404

NOTE 5 — PLAN TERMINATION OR MODIFICATION

The Company intends to continue the Plan indefinitely for the benefit of its participants; however, it reserves the right to terminate or modify the Plan at any time by resolution of its Board of Directors (or other authorized party) and subject to the provisions of ERISA.

SUPPLEMENTAL SCHEDULE

SAVINGS PLUS PLAN, LAM RESEARCH 401(k)		EIN: 94-2634797 PLAN #001

SCHEDULE H, LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR) DECEMBER 31, 2006

				Description of investment including
				maturity date, rate of interest,		Current
		Identity of issue, borrower, lessor or similar party		collateral, par or maturity value		value
		Fidelity Advisor Balanced Fund		Mutual Fund		$	8,482,012
		Fidelity Advisor Intermediate Bond Fund		Mutual Fund			4,226,013
		Fidelity Advisor Value Strategies Fund		Mutual Fund			21,174,387
		Franklin Small Mid Cap Growth Fund		Mutual Fund			20,645,795
		American Funds Amcap Fund		Mutual Fund			19,152,384
		MFS Value Fund		Mutual Fund			30,124,331
		Metlife Stable Value Account		Fixed Income Fund			29,568,406
		Vanguard Institutional Index Fund		Mutual Fund			25,851,822
		Dodge and Cox International Stock Fund		Mutual Fund			24,192,037
		Nuveen Tradewinds Value Opportunities Fund		Mutual Fund			4,839,406
		TCW Galileo Select Equities Fund		Mutual Fund			9,195,898
		Renaissance Investment Management, Inc. Balanced Investment Option Fund: **					—
		Aflac Inc.		Common Stock			220,340
		Allstate Corp.		Common Stock			246,130
		American Express Co.		Common Stock			236,431
		American International Group Inc Intl Lease Fin		Common Stock			233,683
		Amgen Inc.		Common Stock			213,810
		Bank of America Corp.		Common Stock			228,082
		Best Buy Co.		Common Stock			206,032
		Boeing Company		Common Stock			242,533
		Carlisle Inc.		Common Stock			228,278
		Cisco Systems Inc.		Common Stock			235,339
		Citigroup Inc.		Common Stock			253,212
		Coca-Cola Company		Common Stock			242,070
		Conocophillips		Common Stock			249,523
		Cvs Corp.		Common Stock			206,386
		Exxon Mobil Corp.		Common Stock			258,243
		Eli Lilly Co.		Common Stock			208,140
		Fedex Corp		Common Stock			216,659
		First Energy CP		Common Stock			239,873
		Franklin Resources Inc.		Common Stock			234,871
		Goldman Sachs Group Inc		Common Stock			228,455
		Hartford Financial Services Group		Common Stock			234,713
		Hewlett Packard Co		Common Stock			251,045
		Illinois Tool Works Inc.		Common Stock			205,645
		Intel Corporation		Common Stock			231,518
		Intl Business Machines Inc		Common Stock			242,486
		Johnson & Johnson		Common Stock			226,185
		Kohls Corp.		Common Stock			234,099
		Kroger Co		Common Stock			224,356
		Mcdonalds Corp.		Common Stock			250,420
		Metlife Inc.		Common Stock			240,525
		Microsoft Corp.		Common Stock			242,822
		Monsanto Company		Common Stock			248,519
		Morgan Stanley		Common Stock			252,596
		Motorola Inc.		Common Stock			215,354
		Nordstrom Inc.		Common Stock			246,355
		Nucor Inc.		Common Stock			222,311
		Occidental Petroleum Corp.		Common Stock			222,197
		Oracle Corp.		Common Stock			202,029
		PPL Corp.		Common Stock			232,942
		Penney JC Co Holding		Common Stock			222,333
		Reynolds American		Common Stock			245,875
		Texas Instruments Inc.		Common Stock			212,486
		Txu Corp		Common Stock			218,625
		United Technologies Corp.		Common Stock			224,634
		Unitedhealth Group Inc.		Common Stock			258,334
		Valero Energy Corp New		Common Stock			182,385
		Wal-Mart Stores Inc		Common Stock			223,395
		Wellpoint Inc.		Common Stock			258,103
		Wyeth		Common Stock			248,795
		Xto Energy Inc.		Common Stock			230,467
		U.S. Treasury Note, 4.000% due 03-15-10		Bonds			2,110,032
		U.S. Treasury Note, 4.875% due 04-30-11		Bonds			1,749,778
		U.S. Treasury Note, 5.125% due 05-15-16		Bonds			1,263,232
		MG Trust Managed Account		Money Market			71,019
*		Lam Research Unitized Stock Fund:
*		Lam Research Corporation Common Stock		Company Stock			8,040,683
*		MG Trust United NOW Account		Money Market			939,997
*		Cash and cash equivalents		Money Market			3,044
*		Participant loans		Interest rates ranging from 5.0% to 10.5%			2,063,553
				Total		$	225,273,468

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

Exhibit Number		Description
23.1		Consent of Mohler, Nixon & Williams, Accountancy Corporation, Independent Registered Public Accounting Firm