KLA Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

Segment Reporting and Geographic Information

6 Months Ended

Dec. 31, 2018

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

NOTE 17 – SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

While we operate our business in multiple operating segments, we have 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. Our chief operating decision maker is our 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. Our 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 we operate in one reportable segment, all financial segment information required by the authoritative guidance can be found in the condensed consolidated financial statements.

Our 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 December 31,								Six months ended December 31,
(Dollar amounts in thousands)	2018				2017				2018				2017
Revenues:
China	$	269,878	24	%	$	66,460	7	%	$	610,012	28	%	$	234,799	12	%
Taiwan	266,534		24	%	216,791		22	%	520,971		24	%	355,350		18	%
Japan	180,283		16	%	154,762		16	%	315,861		14	%	301,197		15	%
North America	150,113		13	%	149,042		15	%	252,242		11	%	278,292		14	%
Korea	126,968		11	%	270,184		28	%	280,469		13	%	544,862		28	%
Europe and Israel	80,618		7	%	82,158		8	%	152,287		7	%	165,663		9	%
Rest of Asia	45,504		5	%	36,425		4	%	81,316		3	%	65,240		4	%
Total	$	1,119,898	100	%	$	975,822	100	%	$	2,213,158	100	%	$	1,945,403	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)	2018				2017				2018				2017
Revenues:
Wafer Inspection	$	505,878	45	%	$	400,584	41	%	$	978,191	44	%	$	790,004	41	%
Patterning	288,997		26	%	274,868		28	%	598,206		27	%	569,218		29	%
Global Service and Support ⁽¹⁾	295,216		26	%	273,805		28	%	568,193		26	%	534,303		27	%
Other	29,807		3	%	26,565		3	%	68,568		3	%	51,878		3	%
Total	$	1,119,898	100	%	$	975,822	100	%	$	2,213,158	100	%	$	1,945,403	100	%

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(1)全球服务和支持收入萤火虫es service revenues as presented in the Condensed Consolidated Statements of Operations as well as certain product revenues, primarily revenues from our K-T Pro business.

In the three months ended December 31, 2018 , two customers accounted for approximately 14% and 13% of total revenues. In the three months ended December 31, 2017 , one customer accounted for approximately 17% of total revenues. In the six months ended December 31, 2018 , one customer accounted for approximately 14% of total revenues. In the six months ended December 31, 2017 , one customer accounted for approximately 22% of total revenues. Three customers on an individual basis accounted for greater than 10% of net accounts receivables as of December 31, 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 December 31, 2018		As of June 30, 2018
Long-lived assets:
United States	$	205,253	$	187,352
Singapore	49,302		47,009
Israel	27,517		26,980
Europe	12,816		12,924
Rest of Asia	11463年		12,041
Total	$	306,351	$	286,306