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SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 9 Months Ended
Mar. 31, 2021
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 a comprehensive portfolio of inspection, metrology and data analytics products, and related service, which helps integrated circuit ("ICs") 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, Wafer Inspection and Patterning and GSS.
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, PCB and Display and Component Inspection.
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 revenues 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 EndedNine Months Ended
 March 31,March 31,
(In thousands)2021202020212020
Semiconductor Process Control:
Revenues$1,506,140 $1,177,777 $4,154,278 $3,588,839 
Segment gross margin982,511 752,649 2,681,411 2,290,721 
Specialty Semiconductor Process:
Revenues91,724 85,083 271,264 229,328 
Segment gross margin51,720 47,187 152,819 126,684 
PCB, Display and Component Inspection:
Revenues205,202 160,411 565,646 525,242 
Segment gross margin100,311 71,163 275,064 229,769 
Other:
Revenues149 469 739 3,217 
Segment gross margin40 (271)(68)499 
Totals:
Revenues for reportable segments$1,803,215 $1,423,740 $4,991,927 $4,346,626 
Segment gross margin$1,134,582 $870,728 $3,109,226 $2,647,673 

The following table reconciles total revenues for reportable segments to total revenues for the indicated periods:
Three Months EndedNine Months Ended
 March 31,March 31,
(In thousands)2021202020212020
Total revenues for reportable segments$1,803,215 $1,423,740 $4,991,927 $4,346,626 
Corporate allocations and effects of foreign exchange rates558 224 1,336 205 
Total revenues$1,803,773 $1,423,964 $4,993,263 $4,346,831 

The following table reconciles total segment gross margin to total income before income taxes for the indicated periods:
Three Months EndedNine Months Ended
 March 31,March 31,
(In thousands)2021202020212020
Total segment gross margin $1,134,582 $870,728 $3,109,226 $2,647,673 
Acquisition-related charges, corporate allocations, and effects of foreign exchange rates(1)
40,438 36,922 115,887 128,859 
Research and development238,957 215,433 687,059 646,764 
Selling, general and administrative183,040 185,760 537,580 566,358 
Goodwill impairment— 256,649 — 256,649 
Interest expense39,092 39,231 117,358 120,053 
Loss on extinguishment of debt— 22,538 — 22,538 
Other expense (income), net(7,348)(1,004)(269)(5,190)
Income before income taxes$640,403 $115,199 $1,651,611 $911,642 
__________________
(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 March 31,Nine Months Ended March 31,
2021202020212020
Revenues:
Korea$557,514 31 %$297,687 21 %$1,094,979 22 %$677,085 16 %
Taiwan401,797 22 %349,841 24 %1,151,683 23 %1,183,653 27 %
China353,393 20 %352,343 25 %1,221,639 24 %1,079,951 25 %
North America174,728 10 %159,250 11 %559,712 11 %499,750 11 %
Japan161,190 9 %152,984 11 %482,330 10 %553,999 13 %
Europe and Israel95,080 5 %76,021 5 %278,398 6 %232,870 5 %
Rest of Asia60,071 3 %35,838 3 %204,522 4 %119,523 3 %
Total$1,803,773 100 %$1,423,964 100 %$4,993,263 100 %$4,346,831 100 %
The following is a summary of revenues by major product categories for the indicated periods:
(Dollar amounts in thousands)Three Months Ended March 31,Nine Months Ended March 31,
2021202020212020
Revenues:
Wafer Inspection$714,990 40 %$536,318 38 %$1,921,571 38 %$1,590,723 37 %
Patterning399,533 22 %298,973 21 %1,077,977 22 %970,709 22 %
Specialty Semiconductor Process76,852 4 %68,815 5 %222,857 4 %186,626 4 %
PCB, Display and Component Inspection141,539 8 %103,811 7 %377,990 8 %353,406 8 %
Services428,453 24 %372,868 26 %1,234,425 25 %1,093,210 25 %
Other42,406 2 %43,179 3 %158,443 3 %152,157 4 %
Total$1,803,773 100 %$1,423,964 100 %$4,993,263 100 %$4,346,831 100 %

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 which are part of the Semiconductor Process Control segment.

In the three months ended March 31, 2021, two customers accounted for approximately 24% and 16% of total revenues. In the three months ended March 31, 2020, two customers accounted for approximately 20% and 17% of total revenues. In the nine months ended March 31, 2021, two customers accounted for approximately 17% and 15% of total revenues. In the nine months ended March 31, 2020, two customers accounted for approximately 20% and 13% of total revenues. Two customers on an individual basis accounted for greater than 10% of net accounts receivable at March 31, 2021 and at 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)March 31, 2021June 30, 2020
Land, property and equipment, net:
United States$419,581 $329,558 
Singapore73,403 54,946 
Europe56,016 58,065 
Israel55,849 59,162 
Rest of Asia23,589 18,093 
Total$628,438 $519,824