The Company reports its business segments using the “management approach” model for segment reporting. This means that the Company determines its reportable business segments based on the way the chief operating decision maker organizes business segments within the Company for making operating decisions and assessing performance.

The Company reports its financial results in the following three segments: (i) II-VI Laser Solutions, (ii) II-VI Photonics, and (iii) II-VI Performance Products, and the Company’s chief operating decision maker receives and reviews financial information based on these segments. The Company evaluates business segment performance based upon segment operating income, which is defined as earnings before income taxes, interest and other income or expense.

The II-VI Laser Solutions segment is located in the United States, Singapore, China, Germany, Switzerland, Japan, Belgium, the United Kingdom, Italy, South Korea, the Philippines and Taiwan. II-VI Laser Solutions designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used primarily in high-power CO₂ lasers, fiber-delivered beam delivery systems and processing tools and direct diode lasers for industrial lasers sold under the II-VI HIGHYAG and II-VI Laser Enterprise brand names. II-VI Laser Solutions also manufactures compound semiconductor epitaxial wafers for applications in optical components, wireless devices, and high-speed communication systems and manufactures 6-inch GaAs wafers allowing for the production of high performance lasers and integrated circuits in high volume sold under the II-VI EpiWorks and II-VI OptoElectronic Devices Division brand names.

The II-VI Photonics segment is located in the United States, China, Vietnam, Germany, Japan, the United Kingdom, Italy and Hong Kong. II-VI Photonics manufactures crystal materials, optics, microchip lasers and optoelectronic modules for use in optical communication networks and other diverse consumer and commercial applications. In addition, the segment manufactures pump lasers, optical isolators, and optical amplifiers and micro-optics for optical amplifiers, for both terrestrial and submarine applications within the optical communications market.

The II-VI Performance Products segment is located in the United States, Vietnam, Japan, China, Germany and the Philippines. II-VI Performance Products is further divided into production and administrative units that are directed by managers. II-VI Performance Products designs, manufactures and markets infrared optical components and high-precision optical assemblies for aerospace and defense, medical and commercial laser imaging applications. In addition, the segment designs, manufactures and markets unique engineered materials for thermoelectric and silicon carbide applications servicing the semiconductor, aerospace and defense and medical markets.

Effective July 1, 2018 the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved Integrated Photonics, Inc. from II-VI Photonics to II-VI Performance Products. All applicable segment information has been restated to reflect this change.

In September 2018, November 2018, and March 2019, the Company completed its acquisitions of CoAdna, an additional product line, and Redstone, respectively. See Note 3, Acquisitions. The operating results of these acquisitions have been reflected in the selected financial information of the Company’s II-VI Photonics segment, with the exclusion of Redstone that is reflected in the II-VI Performance Products Segment, since the date of the acquisitions.

The accounting policies are consistent across each of the segments. To the extent possible, the Company’s corporate expenses are allocated to the segments. The Company evaluates segment performance based upon reported segment operating income, which is defined as earnings from continuing operations before income taxes, interest and other income or expense. Eliminations and Other include eliminating inter-segment sales and transfers as well as transaction costs related to the pending Finisar acquisition.

The following tables summarize selected financial information of the Company’s operations by segment:

	II-VI				II-VI
	Laser		II-VI		Performance		Eliminations
	Solutions		Photonics		Products		& Other			Total
($000)
2019
Revenues	$	396,573	$	638,889	$	327,034	$	-		$	1,362,496
Inter-segment revenues		91,507		10,745		20,928		(123,180	)		-
Operating income		40,261		81,898		42,153		(15,643	)		148,668
Interest expense		-		-		-		-			(22,417	)
Other income, net		-		-		-		-			2,562
Income taxes		-		-		-		-			(21,296	)
Net earnings		-		-		-		-			107,517
Depreciation and amortization		44,529		26,273		21,563		-			92,365
Expenditures for property, plant & equipment		43,936		44,851		39,963		-			128,750
Segment assets		716,788		681,610		555,375		-			1,953,773
Goodwill		97,881		134,057		87,840		-			319,778

	II-VI				II-VI
	Laser		II-VI		Performance		Eliminations
	Solutions		Photonics		Products		& Other			Total
($000)
2018
Revenues	$	405,940	$	486,485	$	266,369	$	-		$	1,158,794
Inter-segment revenues		34,590		11,180		26,262		(72,032	)		-
Operating income		40,119		63,152		33,492		-			136,763
Interest expense		-		-		-		-			(18,352	)
Other income, net		-		-		-		-			3,783
Income taxes		-		-		-		-			(34,192	)
Net earnings		-		-		-		-			88,002
Depreciation and amortization		38,004		23,242		19,524		-			80,770
Expenditures for property, plant & equipment		80,776		36,122		44,425		-			161,323
Segment assets		740,020		554,574		467,067		-			1,761,661
Goodwill		98,737		109,670		62,271		-			270,678

	II-VI				II-VI
	Laser		II-VI		Performance		Eliminations
	Solutions		Photonics		Products		& Other			Total
($000)
2017
Revenues	$	317,495	$	440,361	$	214,190	$	-		$	972,046
Inter-segment revenues		33,669		8,003		10,189		(51,861	)		-
Operating income		27,459		66,462		21,635		-			115,556
Interest expense		-		-		-		-			(6,809	)
Other income, net		-		-		-		-			10,041
Income taxes		-		-		-		-			(23,514	)
Net earnings		-		-		-		-			95,274
Depreciation and amortization		24,684		21,612		17,341		-			63,637
Expenditures for property, plant & equipment		81,346		28,811		32,788		-			142,945

Geographic information for revenues from the country of origin (shipped from), and long-lived assets from the country of origin, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows:

	Revenues
Year Ended June 30,	2019		2018		2017
($000)
United States	$	405,404	$	373,735	$	294,200
Non-United States
Hong Kong		319,601		186,978		190,702
China		290,287		253,672		208,595
Germany		155,000		132,161		88,304
Japan		109,670		89,153		76,212
Switzerland		32,770		49,557		50,497
Vietnam		22,322		26,898		22,497
Korea		11,674		9,757		6,584
Singapore		6,868		5,941		3,913
Philippines		4,179		3,909		3,057
United Kingdom		2,712		9,359		8,473
Taiwan		2,005		1,705		718
Belgium		4		4,511		7,503
Italy		-		11,458		10,791
Total Non-United States		957,092		785,059		677,846
	$	1,362,496	$	1,158,794	$	972,046

	Long-Lived Assets
June 30,	2019		2018		2017
($000)
United States	$	345,866	$	309,062	$	240,029
Non-United States
China		108,688		81,175		62,024
United Kingdom		60,369		65,357		396
Switzerland		35,592		37,155		36,795
Germany		14,857		14,876		15,323
Vietnam		11,656		10,042		8,272
Philippines		7,793		6,628		6,115
Hong Kong		5,032		2,818		1,914
Other		1,190		598		704
Total Non-United States		245,177		218,649		131,543
	$	591,043	$	527,711	$	371,572