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

3 Months Ended

Sep. 30, 2018

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

NOTE 17 – SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

While KLA-Tencor operates its business in multiple operating segments, the Company has 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. KLA-Tencor’s chief operating decision maker is its 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. 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 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 September 30,
(Dollar amounts in thousands)	2018				2017
Revenues:
China	$	340,134	31	%	$	168339年	17	%
Taiwan	254,437		23	%	138,559		14	%
Korea	153,501		14	%	274,678		28	%
Japan	135,578		12	%	146,435		15	%
North America	102,129		9	%	129,250		13	%
Europe and Israel	71,669		7	%	83,505		9	%
Rest of Asia	35,812		4	%	28,815		4	%
Total	$	1,093,260	100	%	$	969,581	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)	2018				2017
Revenues:
Wafer Inspection	$	472,313	43	%	$	389,420	40	%
Patterning	309,209		28	%	294,350		30	%
Global Service and Support ⁽¹⁾	272,977		25	%	260,498		27	%
Other	38,761		4	%	25,313		3	%
Total	$	1,093,260	100	%	$	969,581	100	%

__________________

(1) The Global Service and Support revenues includes service revenues as presented in the Condensed Consolidated Statements of Operations as well as certain product revenues, primarily revenues from the Company’s K-T Pro business.

In the three months ended September 30, 2018 , two customers accounted for approximately 15% and 10% of total revenues. In the three months ended September 30, 2017 , one customer accounted for approximately 28% of total revenues. One customer and three customers on an individual basis accounted for greater than 10% of net accounts receivables as of September 30, 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 September 30, 2018		As of June 30, 2018
Long-lived assets:
United States	$	192,079	$	187,352
Singapore	47,479		47,009
Israel	27,298		26,980
Europe	12,914		12,924
Rest of Asia	11462年		12,041
Total	$	291,232	$	286,306