Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.3.1.900
Segment Reporting and Geographic Information
 6 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
NOTE 16 – SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
KLA-Tencor reports one reportable segment in accordance with the provisions of the authoritative guidance for segment reporting. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. KLA-Tencor’s chief operating decision maker is its Chief Executive Officer. The Company is engaged primarily in designing, manufacturing, and marketing process control and yield management solutions for the semiconductor and related nanoelectronics industries.
The Company has made certain organizational changes and consolidated its product divisions effective in the first quarter of fiscal year 2016. As a result, the Company has four operating segments which primarily reflect how it is organized by product offerings: Wafer Inspection, Patterning, Global Service and Support, and Others. Accordingly, the Company has recasted its financial information and disclosures for prior periods to be consistent with the current operating structure.
All operating segments have been aggregated due to their inter-dependencies, commonality of long-term economic characteristics, products and services, the production processes, class of customer and distribution processes. The Company’s service products are an extension of the system product portfolio and provide customers with spare parts and fab management services (including system preventive maintenance and optimization services) to improve yield, increase production uptime and throughput, and lower the cost of ownership. Since the Company operates in one reportable segment, all financial segment information required by the authoritative guidance can be found in the condensed consolidated financial statements.
The Company’s significant operations outside the United States include manufacturing facilities in Singapore, Israel, Germany and China and sales, marketing and service offices in Western Europe, Japan and the Asia Pacific regions. For geographical revenue reporting, revenues are attributed to the geographic location in which the customer is located. Long-lived assets consist of land, property and equipment, net and are attributed to the geographic region in which they are located.
The following is a summary of revenues by geographic region, based on ship-to location, for the indicated periods (as a percentage of total revenues):
  
Three months ended December 31,
 
Six months ended December 31,
(Dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
116,729

 
17
%
 
$
236,230

 
35
%
 
$
225,937

 
17
%
 
$
431,600

 
33
%
Taiwan
251,364

 
35
%
 
151,676

 
23
%
 
505,411

 
38
%
 
278,253

 
21
%
Japan
109,125

 
15
%
 
84,007

 
12
%
 
180,743

 
13
%
 
196,231

 
15
%
Europe & Israel
41,335

 
6
%
 
36,533

 
5
%
 
81,181

 
6
%
 
91,709

 
7
%
Korea
79,877

 
11
%
 
106,941

 
16
%
 
153,310

 
11
%
 
176,228

 
13
%
Rest of Asia
111,815

 
16
%
 
60,970

 
9
%
 
206,307

 
15
%
 
145,237

 
11
%
Total
$
710,245

 
100
%
 
$
676,357

 
100
%
 
$
1,352,889

 
100
%
 
$
1,319,258

 
100
%

The following is a summary of revenues by major products for the indicated periods (as a percentage of total revenues):
  
Three months ended December 31,
 
Six months ended December 31,
(Dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wafer Inspection
$
275,825

 
39
%
 
$
323,050

 
48
%
 
$
503,608

 
37
%
 
$
617,532

 
47
%
Patterning
206,549

 
29
%
 
131,309

 
19
%
 
404,634

 
30
%
 
284,207

 
22
%
Global Service and Support(1)
211,048

 
30
%
 
194,324

 
29
%
 
410,919

 
30
%
 
366,282

 
28
%
Other
16,823

 
2
%
 
27,674

 
4
%
 
33,728

 
3
%
 
51,237

 
3
%
Total
$
710,245

 
100
%
 
$
676,357

 
100
%
 
$
1,352,889

 
100
%
 
$
1,319,258

 
100
%

__________________ 
(1) The Global Service and Support revenues includes service revenues as presented in the condensed consolidated statements of operations as well as certain product revenues, primarily revenues from the Company’s K-T Certified business.
In the three months ended December 31, 2015, four customer accounted for approximately 16%, 12%, 11% and 10% of total revenues. In the three months ended December 31, 2014, three customers accounted for approximately 16%, 14% and 13% of total revenues. In the six months ended December 31, 2015, three customer accounted for approximately 19%, 11% and 10% of total revenues. In the six months ended December 31, 2014, three customers accounted for approximately 13%, 13% and 12% of total revenues. Three customers and one customer on an individual basis accounted for greater than 10% of net accounts receivables as of December 31, 2015 and June 30, 2015, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
December 31, 2015
 
As of
June 30, 2015
Long-lived assets:
 
 
 
United States
$
190,745

 
$
207,779

Europe
15,428

 
16,536

Singapore
42,831

 
45,444

Israel
32,373

 
33,841

Rest of Asia
11,016

 
10,991

Total
$
292,393

 
$
314,591