Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v3.2.0.727
Segment Reporting and Geographic Information
 12 Months Ended
Jun. 30, 2015
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,
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
 
 
 
North America
$
815,914

 
29
%
 
$
705,159

 
24
%
 
$
846,125

 
30
%
Taiwan
691,482

 
25
%
 
741,470

 
25
%
 
936,445

 
33
%
Japan
426,963

 
15
%
 
334,653

 
11
%
 
310,204

 
11
%
Europe & Israel
194,670

 
7
%
 
306,779

 
11
%
 
211,121

 
7
%
Korea
405,320

 
14
%
 
371,139

 
13
%
 
292,724

 
10
%
Rest of Asia
279,700

 
10
%
 
470,208

 
16
%
 
246,162

 
9
%
Total
$
2,814,049

 
100
%
 
$
2,929,408

 
100
%
 
$
2,842,781

 
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,
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
1,541,422

 
55
%
 
$
1,685,114

 
58
%
 
$
1,594,128

 
56
%
Metrology
492,175

 
18
%
 
532,002

 
18
%
 
540,835

 
19
%
Service
688,653

 
24
%
 
642,971

 
22
%
 
595,634

 
21
%
Other
91,799

 
3
%
 
69,321

 
2
%
 
112,184

 
4
%
Total
$
2,814,049

 
100
%
 
$
2,929,408

 
100
%
 
$
2,842,781

 
100
%

In the fiscal year ended June 30, 2015, three customers accounted for approximately 15%, 12% and 11% of total revenues. 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.
Long-lived assets by geographic region as of the dates indicated below were as follows:
 
As of June 30,
(In thousands)
2015
 
2014
Long-lived assets:
 
 
 
United States
$
207,779

 
$
219,280

Europe
16,536

 
19,527

Singapore
45,444

 
48,938

Israel
33,841

 
33,388

Rest of Asia
10,991

 
9,130

Total
$
314,591

 
$
330,263