Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.0.6
Segment Reporting and Geographic Information
 3 Months Ended
Sep. 30, 2012
Segment Reporting [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 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, based on ship-to location, for the indicated periods (as a percentage of total revenues):
  
Three months ended September 30,
(Dollar amounts in thousands)
2012
 
2011
Revenues:
 
 
 
 
 
 
 
United States
$
149,988

 
21
%
 
$
198,243

 
25
%
Taiwan
276,299

 
38
%
 
223,289

 
28
%
Japan
88,715

 
12
%
 
134,815

 
17
%
Europe & Israel
59,160

 
8
%
 
92,996

 
12
%
Korea
70,247

 
10
%
 
79,598

 
10
%
Rest of Asia
76,300

 
11
%
 
67,535

 
8
%
Total
$
720,709

 
100
%
 
$
796,476

 
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)
2012
 
2011
Revenues:
 
 
 
 
 
 
 
Defect inspection
$
396,941

 
55
%
 
$
443,633

 
56
%
Metrology
134,029

 
19
%
 
182,012

 
23
%
Service
146,631

 
20
%
 
146,220

 
18
%
Other
43,108

 
6
%
 
24,611

 
3
%
Total
$
720,709

 
100
%
 
$
796,476

 
100
%

Four customers accounted for greater than 10% of total revenues for the three months ended September 30, 2012. Two customers accounted for greater than 10% of total revenues for the three months ended September 30, 2011. One customer accounted for greater than 10% of net accounts receivable as of September 30, 2012. Two customers accounted for greater than 10% of net accounts receivable as of June 30, 2012.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
September 30, 2012
 
As of
June 30, 2012
Long-lived assets:
 
 
 
United States
$
210,957

 
$
211,315

Taiwan
1,097

 
696

Japan
3,925

 
3,570

Europe & Israel
79,086

 
77,292

Korea
3,133

 
2,773

Rest of Asia
47,837

 
46,719

Total
$
346,035

 
$
342,365