Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.6.0.2
Segment Reporting and Geographic Information
 6 Months Ended
Dec. 31, 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.
On December 1, 2016, the Company announced certain organizational changes affecting the duties and responsibilities of its executive officers who will lead the newly created Semiconductor Business Organization (comprised of the Company’s Global Customer Solutions Group, the Global Customer Organization and the Global Products Group). As of December 31, 2016, there is no change in the Company’s reportable segment for segment reporting purposes.
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 December 31,
 
Six months ended December 31,
(Dollar amounts in thousands)
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taiwan
$
336,058

 
38
%
 
$
251,364

 
35
%
 
$
609,750

 
37
%
 
$
505,411

 
38
%
North America
153,162

 
17
%
 
116,729

 
17
%
 
240,428

 
15
%
 
225,937

 
17
%
Korea
96,846

 
11
%
 
79,877

 
11
%
 
231,935

 
14
%
 
153,310

 
11
%
Europe & Israel
93,440

 
11
%
 
41,335

 
6
%
 
128,288

 
8
%
 
81,181

 
6
%
China
73,152

 
9
%
 
91,412

 
13
%
 
158,841

 
10
%
 
166,764

 
12
%
Japan
67,855

 
8
%
 
109,125

 
15
%
 
172,639

 
11
%
 
180,743

 
13
%
Rest of Asia
56,372

 
6
%
 
20,403

 
3
%
 
85,677

 
5
%
 
39,543

 
3
%
Total
$
876,885

 
100
%
 
$
710,245

 
100
%
 
$
1,627,558

 
100
%
 
$
1,352,889

 
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)
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wafer Inspection
$
428,875

 
49
%
 
$
275,825

 
39
%
 
$
784,736

 
48
%
 
$
503,608

 
37
%
Patterning
223,796

 
26
%
 
206,549

 
29
%
 
396,409

 
24
%
 
404,634

 
30
%
Global Service and Support(1)
214,534

 
24
%
 
211,048

 
30
%
 
417,664

 
26
%
 
410,919

 
30
%
Other
9,680

 
1
%
 
16,823

 
2
%
 
28,749

 
2
%
 
33,728

 
3
%
Total
$
876,885

 
100
%
 
$
710,245

 
100
%
 
$
1,627,558

 
100
%
 
$
1,352,889

 
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 December 31, 2016, two customers accounted for approximately 31% and 13% of total revenues. In the three months ended December 31, 2015, four customers accounted for approximately 16%, 12%, 11% and 10% of total revenues. In the six months ended December 31, 2016, two customers accounted for approximately 30% and 11% of total revenues. In the six months ended December 31, 2015, three customers accounted for approximately 19%, 11% and 10% of total revenues. Two customers on an individual basis accounted for greater than 10% of net accounts receivables as of December 31, 2016 and June 30, 2016.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
December 31, 2016
 
As of
June 30, 2016
Long-lived assets:
 
 
 
United States
$
185,132

 
$
182,597

Singapore
40,346

 
41,658

Israel
31,980

 
30,844

Europe
13,152

 
13,347

Rest of Asia
9,356

 
9,568

Total
$
279,966

 
$
278,014