Annual report pursuant to Section 13 and 15(d)

Note 17. Segment Reporting and Geographic Information

 v2.3.0.11
Note 17. Segment Reporting and Geographic Information
 12 Months Ended
Jun. 30, 2011
Segment Reporting Information, Additional Information [Abstract]  
Segment Reporting and Geographic Information
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 the 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 units 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 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 Israel and Singapore, 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 primarily of net property and equipment and are attributed to the geographic region in which they are located.
The following is a summary of revenues by geographic region for the fiscal years ended June 30, 2011, 2010 and 2009 (as a percentage of total revenues):
 
(Dollar amounts in thousands)
Year ended June 30,
2011
 
2010
 
2009
Revenues:
 
 
 
 
 
 
 
 
 
 
 
United States
$
610,955

 
19
%
 
$
341,079

 
19
%
 
$
372,887

 
24
%
Taiwan
864,378

 
27
%
 
688,089

 
38
%
 
181,411

 
12
%
Japan
413,208

 
13
%
 
239,393

 
13
%
 
437,081

 
29
%
Europe & Israel
340,249

 
11
%
 
111,497

 
6
%
 
162,665

 
11
%
Korea
480,488

 
15
%
 
151,198

 
8
%
 
187,624

 
12
%
Rest of Asia
465,889

 
15
%
 
289,504

 
16
%
 
178,548

 
12
%
Total
$
3,175,167

 
100
%
 
$
1,820,760

 
100
%
 
$
1,520,216

 
100
%

The following is a summary of revenues by major products for the fiscal years ended June 30, 2011, 2010 and 2009 (as a percentage of total revenues):
 
(Dollar amounts in thousands)
Year ended June 30,
2011
 
2010
 
2009
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
2,039,856

 
64
%
 
$
1,011,027

 
56
%
 
$
779,914

 
51
%
Metrology
498,904

 
16
%
 
261,105

 
14
%
 
228,501

 
15
%
Service
561,729

 
18
%
 
496,490

 
27
%
 
458,090

 
30
%
Other
74,678

 
2
%
 
52,138

 
3
%
 
53,711

 
4
%
Total
$
3,175,167

 
100
%
 
$
1,820,760

 
100
%
 
$
1,520,216

 
100
%


Long-lived assets by geographic region as of June 30, 2011, 2010 and 2009 were as follows:
 
 
As of June 30,
(In thousands)
2011
 
2010
 
2009
Long-lived assets:
 
 
 
 
 
United States
$
167,381

 
$
174,033

 
$
239,863

Europe & Israel
125,302

 
127,474

 
143,410

Japan
4,256

 
3,985

 
4,308

Taiwan
803

714

714

802.767

1,021

Korea
2,804

 
3,482

 
3,764

Rest of Asia
53,106

 
56,141

 
64,868

Total
$
353,652

 
$
365,829

 
$
457,234