Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Geographic Information

v3.8.0.1
Segment Reporting and Geographic Information
9 Months Ended
Mar. 31, 2018
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 March 31,
 
Nine months ended March 31,
(Dollar amounts in thousands)
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Korea
$
314,062

 
31
%
 
$
160,439

 
18
%
 
$
858,924

 
29
%
 
$
392,374

 
15
%
Japan
199,066

 
19
%
 
86,683

 
9
%
 
500,263

 
17
%
 
259,322

 
10
%
Taiwan
156,428

 
15
%
 
310,847

 
34
%
 
511,778

 
17
%
 
920,597

 
36
%
China
143,761

 
14
%
 
115,860

 
13
%
 
378,560

 
13
%
 
274,701

 
11
%
North America
113,477

 
11
%
 
118,003

 
13
%
 
391,769

 
13
%
 
358,431

 
14
%
Europe & Israel
53,043

 
6
%
 
91,974

 
10
%
 
218,706

 
7
%
 
220,262

 
9
%
Rest of Asia
41,457

 
4
%
 
30,003

 
3
%
 
106,697

 
4
%
 
115,680

 
5
%
Total
$
1,021,294

 
100
%
 
$
913,809

 
100
%
 
$
2,966,697

 
100
%
 
$
2,541,367

 
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)
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wafer Inspection
$
486,662

 
48
%
 
$
399,311

 
44
%
 
$
1,276,666

 
43
%
 
$
1,184,047

 
47
%
Patterning
251,253

 
25
%
 
272,784

 
30
%
 
820,471

 
28
%
 
669,193

 
26
%
Global Service and Support(1)
262,389

 
26
%
 
230,873

 
25
%
 
796,692

 
27
%
 
656,109

 
26
%
Other
20,990

 
1
%
 
10,841

 
1
%
 
72,868

 
2
%
 
32,018

 
1
%
Total
$
1,021,294

 
100
%
 
$
913,809

 
100
%
 
$
2,966,697

 
100
%
 
$
2,541,367

 
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 March 31, 2018, two customer accounted for approximately 22% and 11% of total revenues. In the three months ended March 31, 2017, three customers accounted for approximately 22%, 13% and 12% of total revenues. In the nine months ended March 31, 2018, one customer accounted for approximately 22% of total revenues. In the nine months ended March 31, 2017, three customers accounted for approximately 27%, 11% and 11% of total revenues. Three customers and two customers on an individual basis accounted for greater than 10% of net accounts receivables as of March 31, 2018 and June 30, 2017, respectively.
Long-lived assets by geographic region as of the dates indicated below were as follows: 
(In thousands)
As of
March 31, 2018
 
As of
June 30, 2017
Long-lived assets:
 
 
 
United States
$
185,764

 
$
191,096

Singapore
44,911

 
39,118

Israel
27,744

 
30,182

Europe
13,091

 
13,300

Rest of Asia
12,986

 
10,279

Total
$
284,496

 
$
283,975