Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.1.9
Segment Reporting and Geographic Information
 9 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information
NOTE 16 – 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 March 31,
 
Nine months ended March 31,
(Dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
178,207

 
24
%
 
$
176,560

 
21
%
 
$
609,807

 
29
%
 
$
504,188

 
23
%
Taiwan
178,333

 
24
%
 
242,631

 
29
%
 
456,586

 
22
%
 
508,747

 
23
%
Japan
131,022

 
18
%
 
99,887

 
12
%
 
327,253

 
16
%
 
245,522

 
11
%
Europe & Israel
45,396

 
6
%
 
45,722

 
6
%
 
137,105

 
7
%
 
237,504

 
11
%
Korea
147,753

 
20
%
 
80,454

 
10
%
 
323,981

 
16
%
 
310,481

 
14
%
Rest of Asia
57,748

 
8
%
 
186,345

 
22
%
 
202,985

 
10
%
 
388,623

 
18
%
Total
$
738,459

 
100
%
 
$
831,599

 
100
%
 
$
2,057,717

 
100
%
 
$
2,195,065

 
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)
2015
 
2014
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
399,014

 
54
%
 
$
497,918

 
60
%
 
$
1,150,375

 
56
%
 
$
1,235,783

 
56
%
Metrology
138,781

 
19
%
 
159,662

 
19
%
 
328,377

 
16
%
 
422,656

 
19
%
Service
173,278

 
23
%
 
161,516

 
19
%
 
512,054

 
25
%
 
479,059

 
22
%
Other
27,386

 
4
%
 
12,503

 
2
%
 
66,911

 
3
%
 
57,567

 
3
%
Total
$
738,459

 
100
%
 
$
831,599

 
100
%
 
$
2,057,717

 
100
%
 
$
2,195,065

 
100
%

In the three months ended March 31, 2015, three customers accounted for approximately 18%, 15% and 14% of total revenues and in the three months ended March 31, 2014, three customers accounted for approximately 25%, 17% and 12% of total revenue. In the nine months ended March 31, 2015, three customers accounted for approximately 15%, 14% and 11% of total revenues and in the nine months ended March 31, 2014, three customers accounted for approximately 17%, 16%, and 13% of total revenue. Two customers each accounted for greater than 10% of net accounts receivables as of March 31, 2015 and June 30, 2014, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
March 31, 2015
 
As of
June 30, 2014
Long-lived assets:
 
 
 
United States
$
214,598

 
$
219,280

Europe
16,753

 
19,527

Singapore
46,898

 
48,938

Israel
34,158

 
33,388

Rest of Asia
8,674

 
9,130

Total
$
321,081

 
$
330,263