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SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 3 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
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.
We have four reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other. The reportable segments are determined based on several factors including, but not limited to, customer base, homogeneity of products, technology, delivery channels and similar economic characteristics.
Semiconductor Process Control
The Semiconductor Process Control (“SPC”) segment offers comprehensive portfolio of inspection, metrology and data analytics products, and related service, which helps integrated circuit manufacturers achieve target yield throughout the entire semiconductor fabrication process-from research and development (“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. This reportable segment is comprised of two operating segments.
Specialty Semiconductor Process
The Specialty Semiconductor Manufacturing 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 microelectromechanical systems (“MEMS”), radio frequency (“RF”) communication chips, and power semiconductors for automotive and industrial applications. This reportable segment is comprised of one operating segment.
PCB, Display and Component Inspection
The PCB, Display and Component Inspection segment enables electronic device manufacturers to inspect, test and measure printed circuit boards (“PCBs”), flat panel displays (“FPDs”) 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. This segment also engages in the development and marketing of character recognition solutions to banks, financial and other payment processing institutions and healthcare providers. This reportable segment is comprised of two operating segments.
Other
During the fourth quarter of fiscal 2020, we entered into an Asset Purchase Agreement to sell certain core assets of our non-strategic solar energy business, which was included in our Other reportable segment. This reportable segment remains comprised of one operating segment.
The CODM assesses the performance of each operating segment and allocates resources to those segments based on total revenue and segment gross margin and does not evaluate the segments using discrete asset information. Segment gross margin
excludes corporate allocations and effects of foreign exchange rates, amortization of intangible assets, amortization of inventory fair value adjustments, and transaction costs associated with our acquisitions related to costs of revenues.
The following is a summary of results for each of our four reportable segments for the indicated periods:
Three Months Ended
 September 30,
(In thousands)20202019
Semiconductor Process Control:
Revenue$1,267,954 $1,163,632 
Segment gross margin814,810 742,342 
Specialty Semiconductor Process:
Revenue88,954 69,139 
Segment gross margin49,928 38,164 
PCB, Display and Component Inspection:
Revenue181,177 178,552 
Segment gross margin90,169 76,068 
Other:
Revenue140 2,231 
Segment gross margin13 653 
Totals:
Revenue$1,538,225 $1,413,554 
Segment gross margin$954,920 $857,227 

The following table reconciles total reportable segment revenue to total revenue for the indicated periods:
Three Months Ended
 September 30,
(In thousands)20202019
Total revenue for reportable segments$1,538,225 $1,413,554 
Corporate allocations and effects of foreign exchange rates395 (140)
Total revenue$1,538,620 $1,413,414 

The following table reconciles total segment gross margin to total income before income taxes for the indicated periods:
Three Months Ended
 September 30,
(In thousands)20202019
Total segment gross margin $954,920 $857,227 
Acquisition-related charges, corporate allocations, and effects of foreign exchange rates(1)
36,862 48,054 
Research and development219,038 210,580 
Selling, general and administrative172,631 188,345 
Interest expense39,386 40,350 
Other expense (income), net3,197 (1,618)
Income before income taxes$483,806 $371,516 
__________________
(1)Acquisition-related charges primarily include amortization of intangible assets and amortization of inventory fair value adjustments presented as part of costs of revenues.
Our 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:
(Dollar amounts in thousands)Three Months Ended September 30,
20202019
Revenues:
China$486,089 32 %$345,856 24 %
Taiwan369,100 24 %386,729 27 %
Korea189,518 12 %197,450 14 %
North America170,176 11 %181,983 13 %
Japan164,419 11 %206,211 15 %
Europe and Israel83,117 5 %59,383 4 %
Rest of Asia76,201 5 %35,802 3 %
Total$1,538,620 100 %$1,413,414 100 %
The following is a summary of revenues by major products for the indicated periods:
(Dollar amounts in thousands)Three Months Ended September 30,
20202019
Revenues:
Wafer Inspection$519,551 34 %$448,274 32 %
Patterning370,932 24 %382,658 27 %
Specialty Semiconductor Process74,027 5 %56,870 4 %
PCB, Display and Component Inspection120,626 8 %120,360 9 %
Services393,125 26 %355,439 25 %
Other60,359 3 %49,813 3 %
Total$1,538,620 100 %$1,413,414 100 %

Wafer Inspection, and Patterning products are offered in 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 which are part of Semiconductor Process Control segment.

In the three months ended September 30, 2020, two customers accounted for approximately 14% and 12% of total revenues. In the three months ended September 30, 2019, one customer accounted for approximately 19% of total revenues. One customer on an individual basis accounted for greater than 10% of net accounts receivables at September 30, 2020 and June 30, 2020.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows: 
As ofAs of
(In thousands)September 30, 2020June 30, 2020
Land, property and equipment, net:
United States$371,987 $329,558 
Israel57,830 59,162 
Singapore56,858 54,946 
Europe56,594 58,065 
Rest of Asia18,583 18,093 
Total$561,852 $519,824