Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.10.0.1
Segment Reporting and Geographic Information
 3 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
NOTE 17 – SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
While KLA-Tencor operates its business in multiple operating segments, the Company has only one reportable segment. 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.
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 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)
2018
 
2017
Revenues:
 
 
 
 
 
 
 
China
$
340,134

 
31
%
 
$
168,339

 
17
%
Taiwan
254,437

 
23
%
 
138,559

 
14
%
Korea
153,501

 
14
%
 
274,678

 
28
%
Japan
135,578

 
12
%
 
146,435

 
15
%
North America
102,129

 
9
%
 
129,250

 
13
%
Europe and Israel
71,669

 
7
%
 
83,505

 
9
%
Rest of Asia
35,812

 
4
%
 
28,815

 
4
%
  Total
$
1,093,260

 
100
%
 
$
969,581

 
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)
2018
 
2017
Revenues:
 
 
 
 
 
 
 
Wafer Inspection
$
472,313

 
43
%
 
$
389,420

 
40
%
Patterning
309,209

 
28
%
 
294,350

 
30
%
Global Service and Support(1)
272,977

 
25
%
 
260,498

 
27
%
Other
38,761

 
4
%
 
25,313

 
3
%
  Total
$
1,093,260

 
100
%
 
$
969,581

 
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 Pro business.
In the three months ended September 30, 2018, two customers accounted for approximately 15% and 10% of total revenues. In the three months ended September 30, 2017, one customer accounted for approximately 28% of total revenues. One customer and three customers on an individual basis accounted for greater than 10% of net accounts receivables as of September 30, 2018 and June 30, 2018, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
September 30, 2018
 
As of
June 30, 2018
Long-lived assets:
 
 
 
United States
$
192,079

 
$
187,352

Singapore
47,479

 
47,009

Israel
27,298

 
26,980

Europe
12,914

 
12,924

Rest of Asia
11,462

 
12,041

Total
$
291,232

 
$
286,306