Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v2.4.0.8
Segment Reporting and Geographic Information
 12 Months Ended
Jun. 30, 2014
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 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 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):
 
(Dollar amounts in thousands)
Year ended June 30,
2014
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
 
 
 
 
North America
$
705,159

 
24
%
 
$
846,125

 
30
%
 
$
675,034

 
21
%
Taiwan
741,470

 
25
%
 
936,445

 
33
%
 
872,583

 
28
%
Japan
334,653

 
11
%
 
310,204

 
11
%
 
415,475

 
13
%
Europe & Israel
306,779

 
11
%
 
211,121

 
7
%
 
323,902

 
10
%
Korea
371,139

 
13
%
 
292,724

 
10
%
 
611,462

 
19
%
Rest of Asia
470,208

 
16
%
 
246,162

 
9
%
 
273,488

 
9
%
Total
$
2,929,408

 
100
%
 
$
2,842,781

 
100
%
 
$
3,171,944

 
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,
2014
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
1,685,114

 
58
%
 
$
1,594,128

 
56
%
 
$
1,827,077

 
58
%
Metrology
532,002

 
18
%
 
540,835

 
19
%
 
675,456

 
21
%
Service
642,971

 
22
%
 
595,634

 
21
%
 
574,189

 
18
%
Other
69,321

 
2
%
 
112,184

 
4
%
 
95,222

 
3
%
Total
$
2,929,408

 
100
%
 
$
2,842,781

 
100
%
 
$
3,171,944

 
100
%

In the fiscal year ended June 30, 2014, three customers accounted for approximately 18%, 14% and 11% of total revenues. In the fiscal year ended June 30, 2013, two customers accounted for approximately 23% and 13% of total revenues. In the fiscal year ended June 30, 2012, two customers accounted for approximately 17% and 16% of total revenues.

Long-lived assets by geographic region as of the dates indicated below were as follows:
 
As of June 30,
(In thousands)
2014
 
2013
Long-lived assets:
 
 
 
United States
$
219,280

 
$
207,002

Europe
19,527

 
19,428

Singapore
48,938

 
44,903

Israel
33,388

 
27,137

Rest of Asia
9,130

 
6,811

Total
$
330,263

 
$
305,281