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SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 9 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
Accounting Standards Codification 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 three reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB, Display and Component Inspection. 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. Prior to July 1, 2022, we had a fourth segment, Other, but core assets were sold and there are no longer operations.
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. 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 (“MEMS”), radio frequency (“RF”) 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 reportable segment is composed of two operating segments, PCB and Display and Component Inspection.
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 changes in 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 three reportable segments for the indicated periods:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2023202220232022
Semiconductor Process Control:
Revenues$2,171,557 $1,979,295 $7,226,711 $5,810,580 
Segment gross profit1,367,886 1,284,450 4,622,905 3,789,316 
Specialty Semiconductor Process:
Revenues128,438 117,253 414,390 332,020 
Segment gross profit65,328 61,521 216,408 176,516 
PCB, Display and Component Inspection:
Revenues131,923 192,533 502,627 583,318 
Segment gross profit43,361 93,298 182,899 270,096 
Totals:
Revenues for reportable segments$2,431,918 $2,289,081 $8,143,728 $6,725,918 
Segment gross profit$1,476,575 $1,439,269 $5,022,212 $4,235,928 

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)2023202220232022
Total revenues for reportable segments$2,431,918 $2,289,081 $8,143,728 $6,725,918 
Corporate allocations and effects of changes in foreign currency exchange rates690 (405)(2,809)(774)
Total revenues$2,432,608 $2,288,676 $8,140,919 $6,725,144 

The following table reconciles total segment gross profit to income before income taxes for the indicated periods:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2023202220232022
Total segment gross profit$1,476,575 $1,439,269 $5,022,212 $4,235,928 
Acquisition-related charges, corporate allocations, and effects of changes in foreign currency exchange rates(1)
49,313 42,684 136,651 124,661 
R&D328,276 285,189 979,617 808,373 
SG&A238,393 216,489 735,469 623,229 
Interest expense74,774 39,978 223,449 116,142 
Loss on extinguishment of debt— — 13,286 — 
Other expense (income), net(14,864)8,644 (79,944)23,985 
Income before income taxes$800,683 $846,285 $3,013,684 $2,539,538 
__________________
(1)Acquisition-related charges primarily include amortization of intangible assets, amortization of inventory fair value adjustments and other acquisition-related costs classified or 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,
2023202220232022
Revenues:
China$635,018 26 %$709,502 31 %$2,156,380 26 %$1,939,195 29 %
Taiwan478,855 20 %515,097 22 %1,996,188 24 %1,918,623 29 %
Korea468,226 19 %474,019 21 %1,466,624 18 %1,036,297 16 %
North America341,376 14 %219,267 10 %941,771 12 %668,601 10 %
Japan215,531 9 %132,829 6 %702,986 9 %504,278 7 %
Europe and Israel209,136 9 %164,246 7 %542,823 7 %426,881 6 %
Rest of Asia84,466 3 %73,716 3 %334,147 4 %231,269 3 %
Total$2,432,608 100 %$2,288,676 100 %$8,140,919 100 %$6,725,144 100 %
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,
2023202220232022
Revenues:
Wafer Inspection$1,027,191 42 %$919,072 40 %$3,386,273 42 %$2,910,616 43 %
Patterning611,631 25 %610,821 27 %2,206,263 27 %1,559,197 23 %
Specialty Semiconductor Process114,896 5 %105,832 5 %374,882 5 %303,884 5 %
PCB, Display and Component Inspection69,495 3 %123,384 5 %312,582 4 %383,021 6 %
Services529,124 22 %488,017 21 %1,578,418 19 %1,398,828 21 %
Other80,271 3 %41,550 2 %282,501 3 %169,598 2 %
Total$2,432,608 100 %$2,288,676 100 %$8,140,919 100 %$6,725,144 100 %
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 three months ended March 31, 2023, two customers accounted for approximately 18% and 16% of total revenues, respectively. In the three months ended March 31, 2022, two customers accounted for approximately 17% and 16% of total revenues, respectively. In the nine months ended March 31, 2023, two customers accounted for approximately 20% and 15% of total revenues, respectively. In the nine months ended March 31, 2022, two customers accounted for approximately 22% and 12% of total revenues. Two customers and one customer on an individual basis accounted for greater than 10% of net accounts receivable at March 31, 2023 and at June 30, 2022, 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, 2023June 30, 2022
Land, property and equipment, net:
United States$644,799 $547,454 
Singapore152,275 146,057 
Israel88,277 72,791 
Europe60,827 55,370 
Rest of Asia38,093 28,257 
Total$984,271 $849,929