XML 41 R28.htm IDEA: XBRL DOCUMENT v3.23.2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 12 Months Ended
Jun. 30, 2023
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 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 from that segment were sold, making it non-operational and the segment was eliminated.
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 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 MEMS, radio frequency 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 PCBs, 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 reportable segment is comprised 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. The fiscal 2021 and fiscal 2022 presentations of segments have been modified to be consistent with the fiscal 2023 presentation in that the Other segment’s revenue and gross profit are no longer included in segment revenues or segment gross profits, but are now included in the “corporate allocations and effects of changes in foreign currency exchange rates” amounts that reconcile the respective segment subtotals to total revenues and total gross profit.
 Year Ended June 30,
(In thousands)202320222021
Semiconductor Process Control:
Revenues$9,324,190 $7,924,822 $5,734,825 
Segment gross profit$5,957,573 $5,167,679 $3,705,222 
Specialty Semiconductor Process:
Revenues$543,398 $456,579 $369,216 
Segment gross profit$281,942 $242,520 $206,706 
PCB, Display and Component Inspection:
Revenues$631,604 $832,176 $812,620 
Segment gross profit$221,251 $378,964 $390,571 
Totals:
Revenues for reportable segments$10,499,192 $9,213,577 $6,916,661 
Segment gross profit$6,460,766 $5,789,163 $4,302,499 
The following table reconciles total reportable segment revenue to total revenue for the indicated periods:
 Year Ended June 30,
(In thousands)202320222021
Total revenues for reportable segments$10,499,192 $9,213,577 $6,916,661 
Corporate allocations and effects of changes in foreign currency exchange rates(3,136)(1,694)2,073 
Total revenues$10,496,056 $9,211,883 $6,918,734 
The following table reconciles total segment gross profit to total income before income taxes for the indicated periods:
 Year Ended June 30,
(In thousands)202320222021
Total segment gross profit$6,460,766 $5,789,163 $4,302,499 
Acquisition-related charges, corporate allocations and effects of changes in foreign currency exchange rates(1)
183,017 169,721 155,930 
R&D1,296,727 1,105,254 928,487 
SG&A986,326 860,007 729,602 
Interest expense296,940 160,339 157,328 
Loss on extinguishment of debt13,286 — — 
Other expense (income), net(104,720)4,605 (29,302)
Income before income taxes$3,789,190 $3,489,237 $2,360,454 
__________________
(1)Acquisition-related charges primarily include amortization of intangible assets and other acquisition-related costs classified or presented as part of Costs of revenues.
Our significant operations outside the U.S. 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)Year Ended June 30,
202320222021
Revenues:
China$2,867,443 27 %$2,660,438 29 %$1,831,446 26 %
Taiwan2,493,379 24 %2,528,482 27 %1,690,558 25 %
Korea1,895,710 18 %1,430,495 16 %1,343,473 19 %
North America1,254,956 12 %928,043 10 %765,974 11 %
Japan888,016 9 %724,773 8 %639,381 9 %
Europe and Israel682,103 6 %636,664 7 %396,422 6 %
Rest of Asia414,449 4 %302,988 3 %251,480 4 %
Total$10,496,056 100 %$9,211,883 100 %$6,918,734 100 %
The following is a summary of revenues by major product categories for the indicated periods:
(Dollar amounts in thousands)Year ended June 30,
202320222021
Revenues:
Wafer Inspection$4,336,663 41 %$4,014,726 44 %$2,661,167 39 %
Patterning2,791,130 26 %2,050,025 22 %1,505,990 22 %
Specialty Semiconductor Process492,109 5 %414,811 4 %304,627 4 %
PCB, Display and Component Inspection378,030 4 %562,464 6 %562,104 8 %
Services2,117,031 20 %1,910,455 21 %1,678,418 24 %
Other381,093 4 %259,402 3 %206,428 3 %
Total$10,496,056 100 %$9,211,883 100 %$6,918,734 100 %
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 fiscal year ended June 30, 2023, two customers accounted for approximately 18% and 15% of total revenues. In the fiscal year ended June 30, 2022, two customers accounted for approximately 20% and 12% of total revenues. In the fiscal year ended June 30, 2021, two customers accounted for approximately 17% and 15% of total revenues.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows:
 As of June 30,
(In thousands)20232022
Land, property and equipment, net:
U.S.$672,561 $547,454 
Singapore150,989 146,057 
Israel92,815 72,791 
Europe74,015 55,370 
Rest of Asia41,461 28,257 
Total$1,031,841 $849,929