Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.7.0.1
Segment Reporting and Geographic Information
 9 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
NOTE 16 – 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 its 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.
On December 1, 2016, the Company announced certain organizational changes affecting the duties and responsibilities of its executive officers who will lead the newly created Semiconductor Business Organization (comprised of the Company’s Global Customer Solutions Group, the Global Customer Organization and the Global Products Group). As of March 31, 2017, there is no change in the Company’s reportable segment for segment reporting purposes.
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 Western 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 March 31,
 
Nine months ended March 31,
(Dollar amounts in thousands)
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taiwan
$
310,847

 
34
%
 
$
147,573

 
21
%
 
$
920,597

 
36
%
 
$
652,984

 
32
%
Korea
160,439

 
18
%
 
84,342

 
12
%
 
392,374

 
15
%
 
237,652

 
11
%
North America
118,003

 
13
%
 
163,862

 
23
%
 
358,431

 
14
%
 
389,799

 
19
%
China
115,860

 
13
%
 
72,331

 
10
%
 
274,701

 
11
%
 
239,095

 
11
%
Europe & Israel
91,974

 
10
%
 
37,845

 
5
%
 
220,262

 
9
%
 
119,026

 
6
%
Japan
86,683

 
9
%
 
144,236

 
20
%
 
259,322

 
10
%
 
324,979

 
16
%
Rest of Asia
30,003

 
3
%
 
62,244

 
9
%
 
115,680

 
5
%
 
101,787

 
5
%
Total
$
913,809

 
100
%
 
$
712,433

 
100
%
 
$
2,541,367

 
100
%
 
$
2,065,322

 
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)
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wafer Inspection
$
399,311

 
44
%
 
$
322,171

 
45
%
 
$
1,184,047

 
47
%
 
$
825,779

 
40
%
Patterning
272,784

 
30
%
 
164,945

 
23
%
 
669,193

 
26
%
 
569,579

 
28
%
Global Service and Support(1)
222,763

 
24
%
 
195,857

 
28
%
 
640,427

 
25
%
 
606,776

 
29
%
Other
18,951

 
2
%
 
29,460

 
4
%
 
47,700

 
2
%
 
63,188

 
3
%
Total
$
913,809

 
100
%
 
$
712,433

 
100
%
 
$
2,541,367

 
100
%
 
$
2,065,322

 
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 Certified business.
In the three months ended March 31, 2017, three customers accounted for approximately 22%, 13% and 12% of total revenues. In the three months ended March 31, 2016, three customers accounted for approximately 13%, 12% and 10% of total revenues. In the nine months ended March 31, 2017, three customers accounted for approximately 27%, 11% and 11% of total revenues. In the nine months ended March 31, 2016, two customers accounted for approximately 17% and 11% of total revenues. Two customers on an individual basis accounted for greater than 10% of net accounts receivables as of March 31, 2017 and June 30, 2016, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
March 31, 2017
 
As of
June 30, 2016
Long-lived assets:
 
 
 
United States
$
190,294

 
$
182,597

Singapore
40,150

 
41,658

Israel
32,049

 
30,844

Europe
13,333

 
13,347

Rest of Asia
9,914

 
9,568

Total
$
285,740

 
$
278,014