Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v3.7.0.1
Segment Reporting and Geographic Information
 12 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
NOTE 17 — 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.
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 consolidated financial statements.
The Company’s significant operations outside the United States include manufacturing facilities in China, Germany, Israel and Singapore and sales, marketing and service offices in Japan, the rest of the Asia Pacific region and Europe. 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):
(Dollar amounts in thousands)
Year ended June 30,
2017
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Taiwan
$
1,104,307

 
32
%
 
$
894,557

 
30
%
 
$
691,482

 
25
%
Korea
688,094

 
20
%
 
367,905

 
12
%
 
405,320

 
14
%
North America
523,024

 
14
%
 
521,335

 
18
%
 
815,914

 
29
%
China
412,098

 
12
%
 
430,074

 
14
%
 
162,669

 
6
%
Japan
351,202

 
10
%
 
444,216

 
15
%
 
426,963

 
15
%
Europe & Israel
263,789

 
8
%
 
167,936

 
6
%
 
194,670

 
7
%
Rest of Asia
137,500

 
4
%
 
158,470

 
5
%
 
117,031

 
4
%
Total
$
3,480,014

 
100
%
 
$
2,984,493

 
100
%
 
$
2,814,049

 
100
%

The following is a summary of revenues by major products for the indicated periods (as a percentage of total revenues):
(Dollar amounts in thousands)
Year ended June 30,
2017
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Wafer Inspection
$
1,601,190

 
46
%
 
$
1,293,922

 
43
%
 
$
1,224,858

 
44
%
Patterning
917,178

 
26
%
 
772,045

 
26
%
 
736,959

 
26
%
Global Service and Support (1)
897,794

 
26
%
 
852,151

 
29
%
 
790,971

 
28
%
Other
63,852

 
2
%
 
66,375

 
2
%
 
61,261

 
2
%
Total
$
3,480,014

 
100
%
 
$
2,984,493

 
100
%
 
$
2,814,049

 
100
%
__________________ 
(1) The Global Service and Support revenues includes service revenues as presented in the consolidated statements of operations as well as certain product revenues, primarily revenues from the Company’s K-T Pro business.
In the fiscal year ended June 30, 2017, two customers accounted for approximately 23% and 16% of total revenues. In the fiscal year ended June 30, 2016, two customers accounted for approximately 18% and 10% of total revenues. In the fiscal year ended June 30, 2015, three customers accounted for approximately 15%, 12% and 11% of total revenues.
Long-lived assets by geographic region as of the dates indicated below were as follows:
 
As of June 30,
(In thousands)
2017
 
2016
Long-lived assets:
 
 
 
United States
$
191,096

 
$
182,597

Singapore
39,118

 
41,658

Israel
30,182

 
30,844

Europe
13,300

 
13,347

Rest of Asia
10,279

 
9,568

Total
$
283,975

 
$
278,014