Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v2.4.0.6
Segment Reporting and Geographic Information
 12 Months Ended
Jun. 30, 2012
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 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 Israel and Singapore, 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 primarily of net property and equipment 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,
2012
 
2011
 
2010
Revenues:
 
 
 
 
 
 
 
 
 
 
 
United States
$
675,034

 
21
%
 
$
610,955

 
19
%
 
$
341,079

 
19
%
Taiwan
872,583

 
28
%
 
864,378

 
27
%
 
688,089

 
38
%
Japan
415,475

 
13
%
 
413,208

 
13
%
 
239,393

 
13
%
Europe & Israel
323,902

 
10
%
 
340,249

 
11
%
 
111,497

 
6
%
Korea
611,462

 
19
%
 
480,488

 
15
%
 
151,198

 
8
%
Rest of Asia
273,488

 
9
%
 
465,889

 
15
%
 
289,504

 
16
%
Total
$
3,171,944

 
100
%
 
$
3,175,167

 
100
%
 
$
1,820,760

 
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,
2012
 
2011
 
2010
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
1,830,935

 
58
%
 
$
2,039,856

 
64
%
 
$
1,011,027

 
56
%
Metrology
671,597

 
21
%
 
498,904

 
16
%
 
261,105

 
14
%
Service
574,189

 
18
%
 
561,729

 
18
%
 
496,490

 
27
%
Other
95,223

 
3
%
 
74,678

 
2
%
 
52,138

 
3
%
Total
$
3,171,944

 
100
%
 
$
3,175,167

 
100
%
 
$
1,820,760

 
100
%

Long-lived assets by geographic region as of the dates indicated below were as follows:
 
 
As of June 30,
(In thousands)
2012
 
2011
 
2010
Long-lived assets:
 
 
 
 
 
United States
$
211,315

 
$
202,520

 
$
174,033

Taiwan
696

 
803

 
714

Japan
3,570

 
4,256

 
3,985

Europe & Israel
77,292

 
90,163

 
127,474

Korea
2,773

 
2,804

 
3,482

Rest of Asia
46,719

 
53,106

 
56,141

Total
$
342,365

 
$
353,652

 
$
365,829