Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.3.0.15
Segment Reporting and Geographic Information
 3 Months Ended
Sep. 30, 2011
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 units 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 condensed 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 for the three months ended September 30, 2011 and 2010 (as a percentage of total revenues):
  
Three months ended
September 30,
(Dollar amounts in thousands)
2011
 
2010
Revenues:
 
 
 
 
 
 
 
United States
$
198,243

 
25
%
 
$
86,519

 
12
%
Taiwan
223,289

 
28
%
 
188,541

 
28
%
Japan
134,815

 
17
%
 
93,888

 
14
%
Europe & Israel
92,996

 
12
%
 
39,246

 
6
%
Korea
79,598

 
10
%
 
162,091

 
24
%
Rest of Asia
67,535

 
8
%
 
112,057

 
16
%
Total
$
796,476

 
100
%
 
$
682,342

 
100
%

The following is a summary of revenues by major products for the three months ended September 30, 2011 and 2010 (as a percentage of total revenues):
  
Three months ended
September 30,
(Dollar amounts in thousands)
2011
 
2010
Revenues:
 
 
 
 
 
 
 
Defect inspection
$
443,633

 
56
%
 
$
410,113

 
60
%
Metrology
182,012

 
23
%
 
119,554

 
18
%
Service
146,220

 
18
%
 
131,733

 
19
%
Other
24,611

 
3
%
 
20,942

 
3
%
Total
$
796,476

 
100
%
 
$
682,342

 
100
%

Two customers each accounted for greater than 10% of total revenues for the three months ended September 30, 2011 and 2010. Two customers each accounted for greater than 10% of net accounts receivable as of September 30, 2011 and June 30, 2011.
Long-lived assets by geographic region as of September 30, 2011 and June 30, 2011 were as follows: 
(In thousands)
September 30, 2011
 
June 30, 2011
Long-lived assets:
 
 
 
United States
$
205,763

 
$
202,520

Taiwan
838

 
803

Japan
4,265

 
4,256

Europe & Israel
87,298

 
90,163

Korea
2,648

 
2,804

Rest of Asia
51,463

 
53,106

Total
$
352,275

 
$
353,652