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SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 9 Months Ended
Mar. 31, 2022
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 (“SPC”); Specialty Semiconductor Process; Printed Circuit Board (“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 SPC segment offers a comprehensive portfolio of inspection, metrology and data analytics products, and related service, which helps integrated circuit (“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. This reportable segment is composed 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, radio frequency communication chips and power semiconductors for automotive and industrial applications. This reportable segment is composed 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 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. 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 composed of two operating segments, PCB and Display and Component Inspection.
Other
The Other segment is composed of one operating segment. 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 accounted for the majority of our Other reportable segment. The sale was completed in the first quarter of fiscal 2021.
The CODM assesses the performance of each operating segment and allocates resources to those segments based on total revenues and segment gross profit and does not evaluate the segments using discrete asset information. Segment gross profit excludes corporate allocations and effects of foreign currency 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 March 31,Nine Months Ended March 31,
(In thousands)2022202120222021
SPC:
Revenues$1,979,295 $1,506,140 $5,810,580 $4,154,278 
Segment gross profit1,284,450 982,511 3,789,316 2,681,411 
Specialty Semiconductor Process:
Revenues117,253 91,724 332,020 271,264 
Segment gross profit61,521 51,720 176,516 152,819 
PCB, Display and Component Inspection:
Revenues192,533 205,202 583,318 565,646 
Segment gross profit93,298 100,311 270,096 275,064 
Other:
Revenues— 149 — 739 
Segment gross profit— 40 — (68)
Totals:
Revenues for reportable segments$2,289,081 $1,803,215 $6,725,918 $4,991,927 
Segment gross profit$1,439,269 $1,134,582 $4,235,928 $3,109,226 
The following table reconciles total revenues for reportable segments to total revenues for the indicated periods:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2022202120222021
Total revenues for reportable segments$2,289,081 $1,803,215 $6,725,918 $4,991,927 
Corporate allocations and effects of changes in foreign currency exchange rates(405)558 (774)1,336 
Total revenues$2,288,676 $1,803,773 $6,725,144 $4,993,263 

The following table reconciles total segment gross profit to total income before income taxes for the indicated periods:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2022202120222021
Total segment gross profit$1,439,269 $1,134,582 $4,235,928 $3,109,226 
Acquisition-related charges, corporate allocations, and effects of changes in foreign currency exchange rates(1)
42,684 40,438 124,661 115,887 
R&D285,189 238,957 808,373 687,059 
SG&A216,489 183,040 623,229 537,580 
Interest expense39,978 39,092 116,142 117,358 
Other expense (income), net8,644 (7,348)23,985 (269)
Income before income taxes$846,285 $640,403 $2,539,538 $1,651,611 
__________________
(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,
2022202120222021
Revenues:
China$709,502 31 %$353,393 20 %$1,939,195 29 %$1,221,639 24 %
Taiwan515,097 22 %401,797 22 %1,918,623 29 %1,151,683 23 %
Korea474,019 21 %557,514 31 %1,036,297 16 %1,094,979 22 %
North America219,267 10 %174,728 10 %668,601 10 %559,712 11 %
Europe and Israel164,246 7 %95,080 5 %426,881 6 %278,398 6 %
Japan132,829 6 %161,190 9 %504,278 7 %482,330 10 %
Rest of Asia73,716 3 %60,071 3 %231,269 3 %204,522 4 %
Total$2,288,676 100 %$1,803,773 100 %$6,725,144 100 %$4,993,263 100 %
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,
2022202120222021
Revenues:
Wafer Inspection$919,072 40 %$714,990 40 %$2,910,616 43 %$1,921,571 38 %
Patterning610,821 27 %399,533 22 %1,559,197 23 %1,077,977 22 %
Specialty Semiconductor Process105,832 5 %76,852 4 %303,884 5 %222,857 4 %
PCB, Display and Component Inspection123,384 5 %141,539 8 %383,021 6 %377,990 8 %
Services488,017 21 %428,453 24 %1,398,828 21 %1,234,425 25 %
Other41,550 2 %42,406 2 %169,598 2 %158,443 3 %
Total$2,288,676 100 %$1,803,773 100 %$6,725,144 100 %$4,993,263 100 %
Wafer Inspection and Patterning products are offered in the SPC 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 SPC segment.
In the three months ended March 31, 2022, two customers accounted for approximately 17% and 16% of total revenues. In the three months ended March 31, 2021, two customers accounted for approximately 24% and 16% of total revenues. In the nine months ended March 31, 2022, two customers accounted for approximately 22% and 12% of total revenues. In the nine months ended March 31, 2021, two customers accounted for approximately 17% and 15% of total revenues. Two customers and one customer on an individual basis accounted for greater than 10% of net accounts receivable at March 31, 2022 and at June 30, 2021, respectively.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows: 
As ofAs of
(In thousands)March 31, 2022June 30, 2021
Land, property and equipment, net:
United States$530,852 $447,359 
Singapore128,640 76,882 
Israel65,238 57,403 
Europe55,000 56,895 
Rest of Asia29,144 24,488 
Total$808,874 $663,027