Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v2.4.0.8
Segment Reporting and Geographic Information
9 Months Ended
Mar. 31, 2014
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, 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 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 March 31,
Nine months ended March 31,
(Dollar amounts in thousands)
2014
2013
2014
2013
Revenues:
North America
$
176,560

21
%
$
268,889

38
%
$
504,188

23
%
$
588,505

28
%
Taiwan
242,631

29
%
227,535

31
%
508,747

23
%
727,328

34
%
Japan
99,887

12
%
61,154

8
%
245,522

11
%
242,718

11
%
Europe & Israel
45,722

6
%
54,659

7
%
237,504

11
%
173,572

8
%
Korea
80,454

10
%
80,252

11
%
310,481

14
%
207,758

10
%
Rest of Asia
186,345

22
%
36,540

5
%
388,623

18
%
182,868

9
%
Total
$
831,599

100
%
$
729,029

100
%
$
2,195,065

100
%
$
2,122,749

100
%

The following is a summary of revenues by major products for the indicated periods (as a percentage of total revenues):
Three months ended March 31,
Nine months ended March 31,
(Dollar amounts in thousands)
2014
2013
2014
2013
Revenues:
Defect inspection
$
497,918

60
%
$
427,832

59
%
$
1,235,783

56
%
$
1,184,016

55
%
Metrology
159,662

19
%
135,406

19
%
422,656

19
%
394,489

19
%
Service
161,516

19
%
149,282

20
%
479,059

22
%
445,902

21
%
Other
12,503

2
%
16,509

2
%
57,567

3
%
98,342

5
%
Total
$
831,599

100
%
$
729,029

100
%
$
2,195,065

100
%
$
2,122,749

100
%

Three customers each accounted for greater than 10% of total revenues for the three and nine months ended March 31, 2014 and 2013. Two customers each accounted for greater than 10% of net accounts receivable as of March 31, 2014 and June 30, 2013 .
Long-lived assets by geographic region as of the dates indicated below were as follows:
(In thousands)
As of
March 31, 2014
As of
June 30, 2013
Long-lived assets:
United States
$
222,082

$
215,136

Europe
40,921

49,556

Israel
33,632

28,374

Singapore
49,284

44,957

Rest of Asia
19,768

9,736

Total
$
365,687

$
347,759

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