Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.1.9
Segment Reporting and Geographic Information
 6 Months Ended
Dec. 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 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)
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
236,230

 
35
%
 
$
148,233

 
21
%
 
$
431,600

 
33
%
 
$
327,628

 
24
%
Taiwan
151,676

 
23
%
 
148,825

 
21
%
 
278,253

 
21
%
 
266,116

 
20
%
Japan
84,007

 
12
%
 
64,223

 
9
%
 
196,231

 
15
%
 
145,635

 
11
%
Europe & Israel
36,533

 
5
%
 
70,295

 
10
%
 
91,709

 
7
%
 
191,782

 
14
%
Korea
106,941

 
16
%
 
152,750

 
22
%
 
176,228

 
13
%
 
230,027

 
17
%
Rest of Asia
60,970

 
9
%
 
120,803

 
17
%
 
145,237

 
11
%
 
202,278

 
14
%
Total
$
676,357

 
100
%
 
$
705,129

 
100
%
 
$
1,319,258

 
100
%
 
$
1,363,466

 
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)
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
378,374

 
56
%
 
$
394,702

 
56
%
 
$
751,361

 
57
%
 
$
737,865

 
55
%
Metrology
94,723

 
14
%
 
130,012

 
18
%
 
189,596

 
14
%
 
262,994

 
19
%
Service
172,473

 
25
%
 
160,946

 
23
%
 
338,776

 
26
%
 
317,543

 
23
%
Other
30,787

 
5
%
 
19,469

 
3
%
 
39,525

 
3
%
 
45,064

 
3
%
Total
$
676,357

 
100
%
 
$
705,129

 
100
%
 
$
1,319,258

 
100
%
 
$
1,363,466

 
100
%

In the three months ended December 31, 2014, three customers accounted for approximately 16%, 14% and 13% of total revenues and in the three months ended December 31, 2013, four customers accounted for approximately 15%, 15%, 12% and 11% of total revenue. In the six months ended December 31, 2014, three customers accounted for approximately 13%, 13% and 12% of total revenues and in the six months ended December 31, 2013, three customers accounted for approximately 18%, 12%, and 11% of total revenue. Three customers each accounted for greater than 10% of net accounts receivables as of December 31, 2014 and June 30, 2014, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
December 31, 2014
 
As of
June 30, 2014
Long-lived assets:
 
 
 
United States
$
213,622

 
$
219,280

Europe
18,841

 
19,527

Singapore
48,231

 
48,938

Israel
34,060

 
33,388

Rest of Asia
8,599

 
9,130

Total
$
323,353

 
$
330,263