Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.8.0.1
Segment Reporting and Geographic Information
3 Months Ended
Sep. 30, 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.
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)
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Korea
$
274,678

 
28
%
 
$
135,089

 
18
%
China
168,339

 
17
%
 
85,689

 
12
%
Japan
146,435

 
15
%
 
104,784

 
14
%
Taiwan
138,559

 
14
%
 
273,692

 
35
%
North America
129,250

 
13
%
 
87,266

 
12
%
Europe & Israel
83,505

 
9
%
 
34,848

 
5
%
Rest of Asia
28,815

 
4
%
 
29,305

 
4
%
Total
$
969,581

 
100
%
 
$
750,673

 
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)
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Wafer Inspection
$
389,420

 
40
%
 
$
359,009

 
48
%
Patterning
294,350

 
30
%
 
172,614

 
23
%
Global Service and Support(1)
260,498

 
27
%
 
207,986

 
28
%
Other
25,313

 
3
%
 
11,064

 
1
%
Total
$
969,581

 
100
%
 
$
750,673

 
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, 2017, one customer accounted for approximately 28% of total revenues. In the three months ended September 30, 2016, three customers accounted for approximately 29%, 13% and 11% of total revenues. Two customers on an individual basis accounted for greater than 10% of net accounts receivables as of September 30, 2017 and June 30, 2017, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
September 30, 2017
 
As of
June 30, 2017
Long-lived assets:
 
 
 
United States
$
185,000

 
$
191,096

Singapore
40,531

 
39,118

Israel
29,850

 
30,182

Europe
13,351

 
13,300

Rest of Asia
11,140

 
10,279

Total
$
279,872

 
$
283,975