Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.0.8
Segment Reporting and Geographic Information
 3 Months Ended
Sep. 30, 2013
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 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 Singapore, Israel, Belgium, Germany and China 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)
2013
 
2012
Revenues:
 
 
 
 
 
 
 
North America
$
179,395

 
28
%
 
$
149,988

 
21
%
Taiwan
117,291

 
18
%
 
276,299

 
38
%
Japan
81,412

 
12
%
 
88,715

 
12
%
Europe & Israel
121,487

 
18
%
 
59,160

 
8
%
Korea
77,278

 
12
%
 
70,247

 
10
%
Rest of Asia
81,474

 
12
%
 
76,300

 
11
%
Total
$
658,337

 
100
%
 
$
720,709

 
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)
2013
 
2012
Revenues:
 
 
 
 
 
 
 
Defect inspection
$
343,163

 
52
%
 
$
388,488

 
54
%
Metrology
132,982

 
20
%
 
142,482

 
20
%
Service
156,597

 
24
%
 
146,631

 
20
%
Other
25,595

 
4
%
 
43,108

 
6
%
Total
$
658,337

 
100
%
 
$
720,709

 
100
%

Two customers each accounted for greater than 10% of total revenues for the three months ended September 30, 2013. Four customers each accounted for greater than 10% of total revenues for the three months ended September 30, 2012. Four customers each accounted for greater than 10% of net accounts receivable as of September 30, 2013. Two customers each accounted for greater than 10% of net accounts receivable as of June 30, 2013.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
September 30, 2013
 
As of
June 30, 2013
Long-lived assets:
 
 
 
United States
$
224,488

 
$
215,136

Europe
46,689

 
49,556

Israel
30,575

 
28,374

Singapore
44,848

 
44,957

Rest of Asia
11,155

 
9,736

Total
$
357,755

 
$
347,759