Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.4.0.3
Segment Reporting and Geographic Information
 9 Months Ended
Mar. 31, 2016
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 recast 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 March 31,
 
Nine months ended March 31,
(Dollar amounts in thousands)
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
163,862

 
23
%
 
$
178,207

 
24
%
 
$
389,799

 
19
%
 
$
609,807

 
29
%
Taiwan
147,573

 
21
%
 
178,333

 
24
%
 
652,984

 
32
%
 
456,586

 
22
%
Japan
144,236

 
20
%
 
131,022

 
18
%
 
324,979

 
16
%
 
327,253

 
16
%
Korea
84,342

 
12
%
 
147,753

 
20
%
 
237,652

 
11
%
 
323,981

 
16
%
China
72,331

 
10
%
 
30,389

 
4
%
 
239,095

 
11
%
 
113,302

 
6
%
Europe & Israel
37,845

 
5
%
 
45,396

 
6
%
 
119,026

 
6
%
 
137,105

 
7
%
Rest of Asia
62,244

 
9
%
 
27,359

 
4
%
 
101,787

 
5
%
 
89,683

 
4
%
Total
$
712,433

 
100
%
 
$
738,459

 
100
%
 
$
2,065,322

 
100
%
 
$
2,057,717

 
100
%

The following is a summary of revenues by major products for the indicated periods (as a percentage of total revenues):
  
Three months ended March 31,
 
Nine months ended March 31,
(Dollar amounts in thousands)
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wafer Inspection
$
322,171

 
45
%
 
$
312,203

 
54
%
 
$
825,779

 
40
%
 
$
929,735

 
45
%
Patterning
164,945

 
23
%
 
209,947

 
19
%
 
569,579

 
28
%
 
494,154

 
24
%
Global Service and Support(1)
195,857

 
28
%
 
192,046

 
23
%
 
606,776

 
29
%
 
558,327

 
27
%
Other
29,460

 
4
%
 
24,263

 
4
%
 
63,188

 
3
%
 
75,501

 
4
%
Total
$
712,433

 
100
%
 
$
738,459

 
100
%
 
$
2,065,322

 
100
%
 
$
2,057,717

 
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 March 31, 2016, three customers accounted for approximately 13%, 12%, and 10% of total revenues. In the three months ended March 31, 2015, three customers accounted for approximately 18%, 15% and 14% of total revenues. In the nine months ended March 31, 2016, two customers accounted for approximately 17% and 11% of total revenues. In the nine months ended March 31, 2015, three customers accounted for approximately 15%, 14% and 11% of total revenues. Three customers and one customer on an individual basis accounted for greater than 10% of net accounts receivables as of March 31, 2016 and June 30, 2015, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
March 31, 2016
 
As of
June 30, 2015
Long-lived assets:
 
 
 
United States
$
188,249

 
$
207,779

Europe
15,107

 
16,536

Singapore
41,732

 
45,444

Israel
31,644

 
33,841

Rest of Asia
11,142

 
10,991

Total
$
287,874

 
$
314,591