Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.0.8
Segment Reporting and Geographic Information
 9 Months Ended
Mar. 31, 2014
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, 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 March 31,
 
Nine months ended March 31,
(Dollar amounts in thousands)
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
176,560

 
21
%
 
$
268,889

 
38
%
 
$
504,188

 
23
%
 
$
588,505

 
28
%
Taiwan
242,631

 
29
%
 
227,535

 
31
%
 
508,747

 
23
%
 
727,328

 
34
%
Japan
99,887

 
12
%
 
61,154

 
8
%
 
245,522

 
11
%
 
242,718

 
11
%
Europe & Israel
45,722

 
6
%
 
54,659

 
7
%
 
237,504

 
11
%
 
173,572

 
8
%
Korea
80,454

 
10
%
 
80,252

 
11
%
 
310,481

 
14
%
 
207,758

 
10
%
Rest of Asia
186,345

 
22
%
 
36,540

 
5
%
 
388,623

 
18
%
 
182,868

 
9
%
Total
$
831,599

 
100
%
 
$
729,029

 
100
%
 
$
2,195,065

 
100
%
 
$
2,122,749

 
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)
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
497,918

 
60
%
 
$
427,832

 
59
%
 
$
1,235,783

 
56
%
 
$
1,184,016

 
55
%
Metrology
159,662

 
19
%
 
135,406

 
19
%
 
422,656

 
19
%
 
394,489

 
19
%
Service
161,516

 
19
%
 
149,282

 
20
%
 
479,059

 
22
%
 
445,902

 
21
%
Other
12,503

 
2
%
 
16,509

 
2
%
 
57,567

 
3
%
 
98,342

 
5
%
Total
$
831,599

 
100
%
 
$
729,029

 
100
%
 
$
2,195,065

 
100
%
 
$
2,122,749

 
100
%

Three customers each accounted for greater than 10% of total revenues for the three and nine months ended March 31, 2014 and 2013. Two customers each accounted for greater than 10% of net accounts receivable as of March 31, 2014 and June 30, 2013.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
March 31, 2014
 
As of
June 30, 2013
Long-lived assets:
 
 
 
United States
$
222,082

 
$
215,136

Europe
40,921

 
49,556

Israel
33,632

 
28,374

Singapore
49,284

 
44,957

Rest of Asia
19,768

 
9,736

Total
$
365,687

 
$
347,759