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REVENUE
3 Months Ended
Sep. 23, 2018
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 $261.0 million included in deferred revenue at June 25, 2018 was recognized during the three months ended September 23, 2018.
The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 23, 2018 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
$
555,351

 
$
70,964

(1) 
$

 
$
626,315


(1) This amount is reflected in Deferred profit, within current liabilities, on the Company's Condensed Consolidated Balance Sheets, as the customer can demand performance upon this liability 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
September 23,
2018
 
September 24,
2017
 
(In thousands)
Japan
$
670,040

 
$
494,423

China
593,831

 
337,589

Korea
379,771

 
941,020

Taiwan
280,050

 
338,730

Southeast Asia
198,135

 
119,762

United States
120,105

 
157,224

Europe
88,759

 
89,392


$
2,330,691

 
$
2,478,140

 
 
 
 
The following table presents the percentages of system revenues to each of the primary markets we serve:
 
Three Months Ended
 
September 23, 2018
Memory
77
%
Foundry
17
%
Logic/integrated device manufacturing
6
%