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Segment Reporting | 6 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Reporting |
Note 1 3. | Segment Reporting
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 segments are managed separately due to the market, production requirements and facilities unique to each segment. As discussed in Note 1, 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 IPI from II-VI Photonics to II-VI Performance Products. All applicable segment information has been restated to reflect this change. In September and November 2018, the Company completed its acquisitions of CoAdna and an additional product line. See Note 4. Acquisitions. The operating results of these acquisitions have been reflected in the selected financial information of the Company’s II-VI Photonics 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 and assets are allocated to the segments. The Company evaluates segment performance based upon reported segment operating income, which is defined as earnings 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 Finisar transaction. The following tables summarize selected financial information of the Company’s operations by segment ($000):
|  | Three Months Ended December 31, 2018 |
|  | II-VI |  |  |  |  |  |  | II-VI |  |  |  |  |  |  |  |  |
|  | Laser |  |  | II-VI |  |  | Performance |  |  | Eliminations & |  |  |  |  |
|  | Solutions |  |  | Photonics |  |  | Products |  |  | Other |  |  | Total |
Revenues |  | $ | 105,577 |  |  | $ | 159,694 |  |  | $ | 77,568 |  |  | $ | - |  |  | $ | 342,839 |
Inter-segment revenues |  |  | 13,632 |  |  |  | 2,440 |  |  |  | 6,059 |  |  |  | (22,131 | ) |  |  | - |
Operating income (expense) |  |  | 12,222 |  |  |  | 23,087 |  |  |  | 11,400 |  |  |  | (7,103 | ) |  |  | 39,606 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (5,580 | )
Other income (expense), net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 701 |
Income taxes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (6,025 | )
Net earnings |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 28,702 |
Depreciation and amortization |  |  | 10,626 |  |  |  | 6,462 |  |  |  | 5,241 |  |  |  | - |  |  |  | 22,329 |
Segment assets |  |  | 697,948 |  |  |  | 697,856 |  |  |  | 481,331 |  |  |  | - |  |  |  | 1,877,134 |
Expenditures for property, plant & equipment |  |  | 15,301 |  |  |  | 11,223 |  |  |  | 11,945 |  |  |  | - |  |  |  | 38,468 |
Investments |  |  | - |  |  |  | - |  |  |  | 76,441 |  |  |  | - |  |  |  | 76,441 |
|  | Three Months Ended December 31, 2017 |
|  | II-VI |  |  |  |  |  |  | II-VI |  |  |  |  |  |  |  |  |
|  | Laser |  |  | II-VI |  |  | Performance |  |  | Eliminations & |  |  |  |  |
|  | Solutions |  |  | Photonics |  |  | Products |  |  | Other |  |  | Total |
Revenues |  | $ | 105,033 |  |  | $ | 115,304 |  |  | $ | 61,133 |  |  | $ | - |  |  | $ | 281,470 |
Inter-segment revenues |  |  | 6,887 |  |  |  | 5,497 |  |  |  | 6,320 |  |  |  | (18,704 | ) |  |  | - |
Operating income (expense) |  |  | 9,442 |  |  |  | 16,237 |  |  |  | 6,807 |  |  |  | - |  |  |  | 32,486 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (4,644 | )
Other income (expense), net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,026 |
Income taxes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (20,272 | )
Net earnings |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9,596 |
Depreciation and amortization |  |  | 8,829 |  |  |  | 5,669 |  |  |  | 4,911 |  |  |  | - |  |  |  | 19,409 |
Expenditures for property, plant & equipment |  |  | 23,422 |  |  |  | 7,893 |  |  |  | 8,082 |  |  |  | - |  |  |  | 39,397 |
|  | Six Months Ended December 31, 2018 |
|  | II-VI |  |  |  |  |  |  | II-VI |  |  |  |  |  |  |  |  |
|  | Laser |  |  | II-VI |  |  | Performance |  |  | Eliminations & |  |  |  |  |
|  | Solutions |  |  | Photonics |  |  | Products |  |  | Other |  |  | Total |
Revenues |  | $ | 211,752 |  |  | $ | 294,850 |  |  | $ | 150,670 |  |  | $ | - |  |  | $ | 657,272 |
Inter-segment revenues |  |  | 27,185 |  |  |  | 5,336 |  |  |  | 11,721 |  |  |  | (44,242 | ) |  |  | - |
Operating income (expense) |  |  | 24,532 |  |  |  | 38,999 |  |  |  | 20,391 |  |  |  | (7,103 | ) |  |  | 76,819 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (11,164 | )
Other income (expense), net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,414 |
Income taxes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (12,218 | )
Net earnings |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 54,851 |
Depreciation and amortization |  |  | 21,473 |  |  |  | 12,661 |  |  |  | 10,365 |  |  |  | - |  |  |  | 44,499 |
Expenditures for property, plant & equipment |  |  | 26,894 |  |  |  | 23,274 |  |  |  | 23,219 |  |  |  | - |  |  |  | 73,386 |
|  | Six Months Ended December 31, 2017 |
|  | II-VI |  |  |  |  |  |  | II-VI |  |  |  |  |  |  |  |  |
|  | Laser |  |  | II-VI |  |  | Performance |  |  | Eliminations & |  |  |  |  |
|  | Solutions |  |  | Photonics |  |  | Products |  |  | Other |  |  | Total |
Revenues |  | $ | 192,969 |  |  | $ | 231,244 |  |  | $ | 118,760 |  |  | $ | - |  |  | $ | 542,973 |
Inter-segment revenues |  |  | 14,067 |  |  |  | 8,360 |  |  |  | 12,310 |  |  |  | (34,737 | ) |  |  | - |
Operating income (expense) |  |  | 12,094 |  |  |  | 35,663 |  |  |  | 14,504 |  |  |  | - |  |  |  | 62,261 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (8,289 | )
Other income (expense), net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,796 |
Income taxes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (26,030 | )
Net earnings |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 30,737 |
Depreciation and amortization |  |  | 17,053 |  |  |  | 11,176 |  |  |  | 9,996 |  |  |  | - |  |  |  | 38,225 |
Expenditures for property, plant & equipment |  |  | 36,183 |  |  |  | 17,676 |  |  |  | 22,965 |  |  |  | - |  |  |  | 76,823 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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