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REVENUE | 9 Months Ended
--- | ---
Mar. 31, 2019
Revenue from Contract with Customer [Abstract] |
REVENUE | REVENUE Revenue Recognition The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process, (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Identify the contract with a customer. The Company generally considers documentation of terms with an approved purchase order as a customer contract provided that collection is considered probable, which is assessed based on the creditworthiness of the customer as determined by credit checks, payment histories, and/or other circumstances. Identify the performance obligations in the contract. Performance obligations include sales of systems, spare parts, and services; as well as, installation and training services included in customer contracts, both of which have been deemed immaterial in the context of the contract. Determine the transaction price. The transaction price for the Company’s contracts with its customers consists of both fixed and variable consideration provided it is probable that a significant reversal of revenue will not occur when the uncertainty related to variable consideration is resolved. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes estimates for discounts and credits for future usage which are based on contractual terms outlined in volume purchase agreements and other factors known at the time. The Company generally invoices customers at shipment and for professional services either as provided or upon meeting certain milestones. Customer invoices are generally due within 30 to 90 days after issuance. The Company’s contracts with customers typically do not include significant financing components as the period between the transfer of performance obligations and timing of payment are generally within one year. Allocate the transaction price to the performance obligations in the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to historical discounting trends for products and services and pricing practices in different geographies. Recognize revenue when or as the Company satisfies a performance obligation. Revenue for systems and spares are recognized at a point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. Deferred Revenue Revenue of $126.9 million and $539.6 million included in deferred revenue at June 25, 2018 was recognized during the three and nine months ended March 31, 2019, respectively. The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of March 31, 2019 and when the Company expects to recognize the amounts as revenue:
| Less than 1 Year |  | 1-3 Years |  | More than 3 Years |  | Total
| (In thousands)
Deferred revenue | $ | 386,170 |  |  | $ | 54,774 |  | (1) | $ | — |  |  | $ | 440,944 |
(1) This amount is reported in Deferred profit on the Company's Condensed Consolidated Balance Sheets as the customers can demand the liability to be performed at any time. Disaggregation of Revenue The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. The Company serves three primary markets: memory, foundry, logic/integrated device manufacturing. The following table presents the Company’s revenues disaggregated by geographic region:
| Three Months Ended |  | Nine Months Ended
March 31, 2019 |  | March 25, 2018 |  | March 31, 2019 |  | March 25, 2018
| (In thousands)
Korea | $ | 609,892 |  |  | $ | 1,038,376 |  |  | $ | 1,621,165 |  |  | $ | 2,750,710 |
Taiwan | 570,300 |  |  | 352,191 |  |  | 1,275,883 |  |  | 1,083,904 |
China | 415,999 |  |  | 499,061 |  |  | 1,371,612 |  |  | 1,120,319 |
Japan | 403,592 |  |  | 391,673 |  |  | 1,765,449 |  |  | 1,308,122 |
United States | 230,636 |  |  | 226,623 |  |  | 486,436 |  |  | 674,618 |
Southeast Asia | 120,363 |  |  | 227,558 |  |  | 483,703 |  |  | 616,337 |
Europe | 88,266 |  |  | 156,633 |  |  | 288,164 |  |  | 397,060 |
| $ | 2,439,048 |  |  | $ | 2,892,115 |  |  | $ | 7,292,412 |  |  | $ | 7,951,070 |
The following table presents the percentages of system revenues to each of the primary markets we serve:
| Three Months Ended |  | Nine Months Ended
| March 31, 2019 |  | March 31, 2019
Memory | 61 | % |  | 72 | %
Foundry | 27 | % |  | 19 | %
Logic/integrated device manufacturing | 12 | % |  | 9 | %

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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