Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.5.0.2
Segment Reporting and Geographic Information
 3 Months Ended
Sep. 30, 2016
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 its 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 China, Germany, Israel and Singapore and sales, marketing and service offices in Japan, the rest of the Asia Pacific region and Western Europe. 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)
2016
 
2015
Revenues:
 
 
 
 
 
 
 
Taiwan
$
273,692

 
35
%
 
$
254,047

 
40
%
Korea
135,089

 
18
%
 
73,433

 
11
%
Japan
104,784

 
14
%
 
71,618

 
11
%
North America
87,266

 
12
%
 
109,208

 
17
%
China
85,689

 
12
%
 
75,352

 
12
%
Europe & Israel
34,848

 
5
%
 
39,846

 
6
%
Rest of Asia
29,305

 
4
%
 
19,140

 
3
%
Total
$
750,673

 
100
%
 
$
642,644

 
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)
2016
 
2015
Revenues:
 
 
 
 
 
 
 
Wafer Inspection
$
359,009

 
48
%
 
$
227,783

 
35
%
Patterning
172,614

 
23
%
 
198,085

 
31
%
Global Service and Support(1)
203,130

 
27
%
 
199,871

 
31
%
Other
15,920

 
2
%
 
16,905

 
3
%
Total
$
750,673

 
100
%
 
$
642,644

 
100
%

__________________ 
(1) The Global Service and Support revenues includes service revenues as presented in the condensed consolidated statements of operations as well as certain product revenues, primarily revenues from the Company’s K-T Certified business.
In the three months ended September 30, 2016, three customers accounted for approximately 29%, 13%, and 11% of total revenues. In the three months ended September 30, 2015, one customer accounted for approximately 23% of total revenues. Four customers and two customers on an individual basis accounted for greater than 10% of net accounts receivables as of September 30, 2016 and June 30, 2016, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
September 30, 2016
 
As of
June 30, 2016
Long-lived assets:
 
 
 
United States
$
176,342

 
$
182,597

Singapore
41,508

 
41,658

Israel
31,079

 
30,844

Europe
13,182

 
13,347

Rest of Asia
10,240

 
9,568

Total
$
272,351

 
$
278,014