Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.0.6
Segment Reporting and Geographic Information
 6 Months Ended
Dec. 31, 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 indicated periods (as a percentage of total revenues):
  
Three months ended
December 31,
 
Six months ended
December 31,
(Dollar amounts in thousands)
2011
 
2010
 
2011
 
2010
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
160,484

 
25
%
 
$
149,843

 
20
%
 
$
358,727

 
25
%
 
$
236,362

 
16
%
Taiwan
169,015

 
26
%
 
233,081

 
30
%
 
392,305

 
27
%
 
421,622

 
29
%
Japan
110,321

 
17
%
 
59,813

 
8
%
 
245,136

 
17
%
 
153,701

 
11
%
Europe & Israel
69,270

 
11
%
 
60,491

 
8
%
 
162,266

 
11
%
 
99,737

 
7
%
Korea
61,979

 
10
%
 
123,154

 
16
%
 
141,577

 
10
%
 
285,245

 
20
%
Rest of Asia
71,413

 
11
%
 
139,945

 
18
%
 
138,947

 
10
%
 
252,002

 
17
%
Total
$
642,482

 
100
%
 
$
766,327

 
100
%
 
$
1,438,958

 
100
%
 
$
1,448,669

 
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)
2011
 
2010
 
2011
 
2010
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defect inspection
$
343,463

 
53
%
 
$
506,360

 
66
%
 
$
787,096

 
55
%
 
$
916,473

 
63
%
Metrology
131,746

 
21
%
 
104,041

 
14
%
 
313,758

 
22
%
 
223,595

 
15
%
Service
141,823

 
22
%
 
138,470

 
18
%
 
288,043

 
20
%
 
270,203

 
19
%
Other
25,450

 
4
%
 
17,456

 
2
%
 
50,061

 
3
%
 
38,398

 
3
%
Total
$
642,482

 
100
%
 
$
766,327

 
100
%
 
$
1,438,958

 
100
%
 
$
1,448,669

 
100
%

Two customers each accounted for greater than 10% of total revenues for the three months ended December 31, 2011 and 2010. Three customers accounted for greater than 10% of total revenues for the six months ended December 31, 2011. Two customers accounted for greater than 10% of total revenues for the six months ended December 31, 2010. Two customers each accounted for greater than 10% of net accounts receivable as of December 31, 2011 and June 30, 2011.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of December 31, 2011
 
As of June 30, 2011
Long-lived assets:
 
 
 
United States
$
207,639

 
$
202,520

Taiwan
813

 
803

Japan
4,172

 
4,256

Europe & Israel
84,221

 
90,163

Korea
2,575

 
2,804

Rest of Asia
48,426

 
53,106

Total
$
347,846

 
$
353,652