Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.0.8
Segment Reporting and Geographic Information
 6 Months Ended
Dec. 31, 2013
Segment Reporting [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 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, Belgium, 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 primarily 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)
2013
 
2012
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
148,233

 
21
%
 
$
169,629

 
25
%
 
$
327,628

 
24
%
 
$
319,617

 
23
%
Taiwan
148,825

 
21
%
 
223,493

 
33
%
 
266,116

 
20
%
 
499,792

 
36
%
Japan
64,223

 
9
%
 
92,849

 
14
%
 
145,635

 
11
%
 
181,564

 
13
%
Europe & Israel
70,295

 
10
%
 
59,753

 
9
%
 
191,782

 
14
%
 
118,913

 
9
%
Korea
152,750

 
22
%
 
57,259

 
9
%
 
230,027

 
17
%
 
127,506

 
9
%
Rest of Asia
120,803

 
17
%
 
70,028

 
10
%
 
202,278

 
14
%
 
146,328

 
10
%
Total
$
705,129

 
100
%
 
$
673,011

 
100
%
 
$
1,363,466

 
100
%
 
$
1,393,720

 
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)
2013
 
2012
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
394,702

 
56
%
 
$
367,696

 
55
%
 
$
737,865

 
55
%
 
$
756,184

 
54
%
Metrology
130,012

 
18
%
 
116,600

 
17
%
 
262,994

 
19
%
 
259,083

 
19
%
Service
160,946

 
23
%
 
149,988

 
22
%
 
317,543

 
23
%
 
296,619

 
21
%
Other
19,469

 
3
%
 
38,727

 
6
%
 
45,064

 
3
%
 
81,834

 
6
%
Total
$
705,129

 
100
%
 
$
673,011

 
100
%
 
$
1,363,466

 
100
%
 
$
1,393,720

 
100
%

Four customers each accounted for greater than 10% of total revenues for the three months ended December 31, 2013. One customer accounted for greater than 10% of total revenues for the three months ended December 31, 2012. Three customers each accounted for greater than 10% of total revenues for the six months ended December 31, 2013. Two customers each accounted for greater than 10% of total revenues for the six months ended December 31, 2012. Three customers each accounted for greater than 10% of net accounts receivable as of December 31, 2013. Two customers each accounted for greater than 10% of net accounts receivable as of June 30, 2013.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
December 31, 2013
 
As of
June 30, 2013
Long-lived assets:
 
 
 
United States
$
223,603

 
$
215,136

Europe
44,100

 
49,556

Israel
32,036

 
28,374

Singapore
48,769

 
44,957

Rest of Asia
11,351

 
9,736

Total
$
359,859

 
$
347,759