Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.0.8
Segment Reporting and Geographic Information
 3 Months Ended
Sep. 30, 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 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 September 30,
(Dollar amounts in thousands)
2014
 
2013
Revenues:
 
 
 
 
 
 
 
North America
$
195,370

 
30
%
 
$
179,395

 
28
%
Taiwan
126,577

 
20
%
 
117,291

 
18
%
Japan
112,224

 
17
%
 
81,412

 
12
%
Europe & Israel
55,176

 
9
%
 
121,487

 
18
%
Korea
69,287

 
11
%
 
77,278

 
12
%
Rest of Asia
84,267

 
13
%
 
81,474

 
12
%
Total
$
642,901

 
100
%
 
$
658,337

 
100
%

The following is a summary of revenues by major products for the indicated periods (as a percentage of total revenues):
  
Three months ended September 30,
(Dollar amounts in thousands)
2014
 
2013
Revenues:
 
 
 
 
 
 
 
Defect inspection
$
372,987

 
58
%
 
$
343,163

 
52
%
Metrology
94,873

 
15
%
 
132,982

 
20
%
Service
166,303

 
26
%
 
156,597

 
24
%
Other
8,738

 
1
%
 
25,595

 
4
%
Total
$
642,901

 
100
%
 
$
658,337

 
100
%

In the three months ended September 30, 2014, three customers accounted for approximately 13%, 13% and 12% of total revenues. In the three months ended September 30, 2013, two customers accounted for approximately 25%, and 10% of total revenue. One and four customers each accounted for greater than 10% of net accounts receivables as of September 30, 2014 and September 30, 2013, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
September 30, 2014
 
As of
June 30, 2014
Long-lived assets:
 
 
 
United States
$
218,874

 
$
219,280

Europe
19,178

 
19,527

Singapore
49,557

 
48,938

Israel
33,731

 
33,388

Rest of Asia
8,619

 
9,130

Total
$
329,959

 
$
330,263