KLA CORPKLAC
KLA CORP Segments Disclosure
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
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ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer.
Our operating segments are aggregated into reportable segments based on several factors including, but not limited to, customer base, homogeneity of products, technology, delivery channels and similar economic characteristics. We have three reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.
Semiconductor Process Control
The Semiconductor Process Control segment offers a comprehensive portfolio of inspection, metrology and data analytics products, and related services, which helps IC manufacturers achieve target yield throughout the entire semiconductor fabrication process, from R&D to final volume production. Our differentiated products and services are designed to provide comprehensive solutions that help our customers accelerate development and production ramp cycles, achieve higher and more stable semiconductor die yields and improve their overall profitability.
Specialty Semiconductor Process
The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etching process tools, which are used by a broad range of specialty semiconductor customers, including manufacturers of MEMS, radio frequency communication chips, and power semiconductors for automotive and industrial applications.
PCB and Component Inspection
The PCB and Component Inspection segment enables electronic device manufacturers to inspect, test and measure PCBs, flat panel displays and ICs to verify their quality, pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces. In March 2024, we made the decision to exit the Display business by announcing we would end manufacturing of most Display products, but will continue to provide services to the installed base of Display products for existing customers.
The CODM uses total segment revenues and segment profit (loss) to assess performance and allocate resources (including employees, financial or capital resources), primarily during the annual strategic long-term planning and budgeting process. The CODM considers changes in market conditions, technology constraints and the competitive environment when making decisions about allocating resources to segments. The CODM does not evaluate segments using discrete asset
information. Segment profit (loss) represents segment income (loss) before income taxes, and excludes interest expense, other expense (income), net, restructuring costs, effects of changes in foreign currency exchange rates, and other corporate expenses.
The following is a summary of results for each of our three reportable segments for the indicated periods.
(In thousands) | Semiconductor Process Control | Specialty Semiconductor Process | PCB and Component Inspection | Total | |||||||||||||||||||
| For the year ended June 30, 2023 | |||||||||||||||||||||||
| Revenue | $ | 9,324,190 | $ | 543,398 | $ | 631,604 | $ | 10,499,192 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of revenue | 3,366,617 | 261,456 | 410,353 | ||||||||||||||||||||
| R&D | 1,064,752 | 40,436 | 168,283 | ||||||||||||||||||||
| SG&A | 713,924 | 45,982 | 116,613 | ||||||||||||||||||||
Other segment items (1) | 78,747 | 114,049 | 78,768 | ||||||||||||||||||||
| Segment profit (loss) | $ | 4,100,150 | $ | 81,475 | $ | (142,413) | $ | 4,039,212 | |||||||||||||||
| For the year ended June 30, 2024 | |||||||||||||||||||||||
| Revenue | $ | 8,733,556 | $ | 528,701 | $ | 552,491 | $ | 9,814,748 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of revenue | 3,104,254 | 245,791 | 393,531 | ||||||||||||||||||||
| R&D | 1,077,366 | 40,043 | 147,867 | ||||||||||||||||||||
| SG&A | 728,349 | 43,959 | 116,074 | ||||||||||||||||||||
Other segment items (1) | 56,014 | 108,069 | 365,292 | ||||||||||||||||||||
| Segment profit (loss) | $ | 3,767,573 | $ | 90,839 | $ | (470,273) | $ | 3,388,139 | |||||||||||||||
| For the year ended June 30, 2025 | |||||||||||||||||||||||
| Revenue | $ | 10,947,359 | $ | 587,107 | $ | 621,721 | $ | 12,156,187 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of revenue | 3,922,735 | 283,160 | 358,847 | ||||||||||||||||||||
| R&D | 1,165,858 | 47,054 | 133,487 | ||||||||||||||||||||
| SG&A | 814,074 | 48,980 | 102,662 | ||||||||||||||||||||
Other segment items (1) | 41,946 | 108,961 | 307,882 | ||||||||||||||||||||
| Segment profit (loss) | $ | 5,002,746 | $ | 98,952 | $ | (281,157) | $ | 4,820,541 | |||||||||||||||
(1)Other segment items for each reportable segment includes:
•Semiconductor Process Control — amortization of purchased intangible assets and acquisition related expenses.
•Specialty Semiconductor Process — amortization of purchased intangible assets.
•PCB and Component Inspection — amortization of purchased intangible assets and impairment of goodwill and purchased intangible assets for the years ended June 30, 2024 and 2025.
The following table reconciles total reportable segment revenue to total revenue for the indicated periods:
| Year Ended June 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Total revenues for reportable segments | $ | 12,156,187 | $ | 9,814,748 | $ | 10,499,192 | |||||||||||
| Corporate allocations and effects of changes in foreign currency exchange rates | (25) | (2,501) | (3,136) | ||||||||||||||
| Total revenues | $ | 12,156,162 | $ | 9,812,247 | $ | 10,496,056 | |||||||||||
The following table reconciles total segment profit to total income before income taxes for the indicated periods:
| Year Ended June 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Total segment profit | $ | 4,820,541 | $ | 3,388,139 | $ | 4,039,212 | |||||||||||
Unallocated expenses (1) | 45,414 | 41,929 | 44,516 | ||||||||||||||
| Interest expense | 302,166 | 311,253 | 296,940 | ||||||||||||||
| Loss on extinguishment of debt | — | — | 13,286 | ||||||||||||||
| Other expense (income), net | (171,487) | (155,075) | (104,720) | ||||||||||||||
| Income before income taxes | $ | 4,644,448 | $ | 3,190,032 | $ | 3,789,190 | |||||||||||
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(1)Unallocated expenses include restructuring costs, effects of changes in exchange rates and other corporate expenses.
Our significant operations outside the U.S. 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:
| (Dollar amounts in thousands) | Year Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| China | $ | 4,042,567 | 33 | % | $ | 4,196,727 | 43 | % | $ | 2,867,443 | 27 | % | |||||||||||||||||||||||
| Taiwan | 3,205,392 | 27 | % | 1,738,065 | 18 | % | 2,493,379 | 24 | % | ||||||||||||||||||||||||||
| Korea | 1,452,826 | 12 | % | 906,924 | 9 | % | 1,895,710 | 18 | % | ||||||||||||||||||||||||||
| North America | 1,362,311 | 11 | % | 1,070,791 | 11 | % | 1,254,956 | 12 | % | ||||||||||||||||||||||||||
| Japan | 1,133,002 | 9 | % | 963,203 | 10 | % | 888,016 | 9 | % | ||||||||||||||||||||||||||
| Europe and Israel | 574,197 | 5 | % | 540,263 | 6 | % | 682,103 | 6 | % | ||||||||||||||||||||||||||
| Rest of Asia | 385,867 | 3 | % | 396,274 | 3 | % | 414,449 | 4 | % | ||||||||||||||||||||||||||
| Total | $ | 12,156,162 | 100 | % | $ | 9,812,247 | 100 | % | $ | 10,496,056 | 100 | % | |||||||||||||||||||||||
The following is a summary of revenues by major product categories for the indicated periods:
| (Dollar amounts in thousands) | Year Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Wafer Inspection | $ | 6,198,815 | 51 | % | $ | 4,333,296 | 44 | % | $ | 4,336,663 | 41 | % | |||||||||||||||||||||||
| Patterning | 2,196,347 | 18 | % | 2,054,442 | 21 | % | 2,791,130 | 26 | % | ||||||||||||||||||||||||||
| Specialty Semiconductor Process | 517,201 | 4 | % | 470,565 | 5 | % | 492,109 | 5 | % | ||||||||||||||||||||||||||
| PCB and Component Inspection | 355,891 | 3 | % | 291,161 | 3 | % | 378,030 | 4 | % | ||||||||||||||||||||||||||
| Services | 2,683,308 | 22 | % | 2,329,568 | 24 | % | 2,117,031 | 20 | % | ||||||||||||||||||||||||||
| Other | 204,600 | 2 | % | 333,215 | 3 | % | 381,093 | 4 | % | ||||||||||||||||||||||||||
| Total | $ | 12,156,162 | 100 | % | $ | 9,812,247 | 100 | % | $ | 10,496,056 | 100 | % | |||||||||||||||||||||||
Wafer Inspection and Patterning products are offered in the Semiconductor Process Control segment. Services are offered in multiple segments. Other includes primarily refurbished systems, remanufactured legacy systems, and enhancements and upgrades for previous-generation products that are part of the Semiconductor Process Control segment.
In the fiscal year ended June 30, 2025, one customer accounted for approximately 19% of total revenues. In the fiscal year ended June 30, 2024, one customer accounted for approximately 13% of total revenues. In the fiscal year ended June 30, 2023, two customers accounted for approximately 18% and 15% of total revenues.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows:
| As of June 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Land, property and equipment, net: | |||||||||||
| U.S. | $ | 728,162 | $ | 689,937 | |||||||
| Europe | 253,848 | 155,812 | |||||||||
| Singapore | 153,052 | 148,557 | |||||||||
| Israel | 68,604 | 84,279 | |||||||||
| Rest of Asia | 49,109 | 31,383 | |||||||||
| Total | $ | 1,252,775 | $ | 1,109,968 | |||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 8, 2025 | Showing above |
| 2022 | Aug 5, 2022 | |
| 2020 | Aug 7, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.