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Segment and Geographic Reporting | 12 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment and Geographic Reporting | Segment and Geographic 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. Effective July 1, 2019, the Company realigned the composition of its operating segments. The Company combined II-VI Laser Solutions and II-VI Performance Products and renamed the combined segment Compound Semiconductors. All applicable segment information has been restated to reflect this change. Additionally, the Company changed the name of II-VI Photonics to Photonic Solutions. The Company reports its financial results in two segments, 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 Compound Semiconductors segment has locations in the United States, Singapore, China, Germany, Switzerland, Japan, Belgium, the United Kingdom, Italy, South Korea, the Philippines, Vietnam, Sweden, and Taiwan. This segment designs, manufactures and markets: (i) 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) infrared optical components and high-precision optical assemblies for aerospace and defense, medical and commercial laser imaging applications; (iii) semiconductor lasers and detectors for optical interconnects and sensing applications with InP; and (iv) unique engineered materials for thermoelectric and silicon carbide applications servicing the semiconductor, aerospace and defense and medical markets. Compound Semiconductors 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 Photonic Solutions segment has locations in the United States, China, Vietnam, Germany, Japan, the United Kingdom, Italy, Malaysia, Australia, and Hong Kong. This segment 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. In September 2019, the Company completed its acquisition of Finisar. See Note 3. The operating results of this acquisition have been reflected in the selected financial information of the Company’s Photonic Solutions segment and Compound Semiconductors Segment beginning on October 1, 2019, with the results from September 24, 2019 to September 30, 2019 reflected in Unallocated and Other. The accounting policies are consistent across both 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. Unallocated 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:
|  | Photonic Solutions |  | Compound Semiconductors |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |
2020 |  |  |  |  |  |  |  |
Revenues |  | $ | 1,536,790 |  |  | $ | 821,230 |  |  | $ | 22,051 |  |  | $ | 2,380,071 |
Inter-segment revenues |  | 31,515 |  |  | 164,884 |  |  | (196,399) |  |  | — |
Operating income (loss) |  | 49,930 |  |  | 62,279 |  |  | (72,730) |  |  | 39,479 |
Interest expense |  | — |  |  | — |  |  | — |  |  | (89,409) |
Other income (expense), net |  | — |  |  | — |  |  | — |  |  | (13,998) |
Income taxes |  | — |  |  | — |  |  | — |  |  | (3,101) |
Net earnings (loss) |  | — |  |  | — |  |  | — |  |  | (67,029) |
Depreciation and amortization |  | 112,203 |  |  | 104,936 |  |  | 3,743 |  |  | 220,882 |
Expenditures for property, plant & equipment |  | 45,795 |  |  | 88,318 |  |  | 2,764 |  |  | 136,877 |
Segment assets |  | 3,502,467 |  |  | 1,732,247 |  |  | — |  |  | 5,234,714 |
Goodwill |  | 1,052,494 |  |  | 186,515 |  |  | — |  |  | 1,239,009 |
|  | Photonic Solutions |  | Compound Semiconductors |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |
2019 |  |  |  |  |  |  |  |
Revenues |  | $ | 638,889 |  |  | $ | 723,607 |  |  | $ | — |  |  | $ | 1,362,496 |
Inter-segment revenues |  | 12,568 |  |  | 94,405 |  |  | (106,973) |  |  | — |
Operating income (loss) |  | 81,898 |  |  | 82,414 |  |  | (15,643) |  |  | 148,668 |
Interest expense |  | — |  |  | — |  |  | — |  |  | (22,417) |
Other income (expense), net |  | — |  |  | — |  |  | — |  |  | 2,562 |
Income taxes |  | — |  |  | — |  |  | — |  |  | (21,296) |
Net earnings |  | — |  |  | — |  |  | — |  |  | 107,517 |
Depreciation and amortization |  | 26,273 |  |  | 66,092 |  |  | — |  |  | 92,365 |
Expenditures for property, plant & equipment |  | 44,851 |  |  | 83,899 |  |  | — |  |  | 128,750 |
Segment assets |  | 681,610 |  |  | 1,272,163 |  |  | — |  |  | 1,953,773 |
Goodwill |  | 134,057 |  |  | 185,721 |  |  | — |  |  | 319,778 |
|  | Photonic Solutions |  | Compound Semiconductors |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |
2018 |  |  |  |  |  |  |  |
Revenues |  | $ | 486,485 |  |  | $ | 672,309 |  |  | $ | — |  |  | $ | 1,158,794 |
Inter-segment revenues |  | 24,867 |  |  | 37,723 |  |  | (62,591) |  |  | — |
Operating income |  | 63,152 |  |  | 73,611 |  |  | — |  |  | 136,763 |
Interest expense |  | — |  |  | — |  |  | — |  |  | (18,352) |
Other income, net |  | — |  |  | — |  |  | — |  |  | 3,783 |
Income taxes |  | — |  |  | — |  |  | — |  |  | (34,192) |
Net earnings |  | — |  |  | — |  |  | — |  |  | 88,002 |
Depreciation and amortization |  | 23,242 |  |  | 57,528 |  |  | — |  |  | 80,770 |
Expenditures for property, plant & equipment |  | 36,122 |  |  | 125,201 |  |  | — |  |  | 161,323 |
Geographic information for revenues from the legal country of origin, 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, |  | 2020 |  | 2019 |  | 2018
($000) |  |  |  |  |  |
United States |  | $ | 1,432,492 |  |  | $ | 405,404 |  |  | $ | 373,735 |
Non-United States |  |  |  |  |  |
Hong Kong |  | 299,359 |  |  | 319,601 |  |  | 186,978 |
China |  | 292,138 |  |  | 290,287 |  |  | 253,672 |
Japan |  | 146,325 |  |  | 109,670 |  |  | 89,153 |
Germany |  | 124,934 |  |  | 155,000 |  |  | 132,161 |
Switzerland |  | 35,895 |  |  | 32,770 |  |  | 49,557 |
Vietnam |  | 22,152 |  |  | 22,322 |  |  | 26,898 |
Korea |  | 8,537 |  |  | 11,674 |  |  | 9,757 |
Singapore |  | 5,791 |  |  | 6,868 |  |  | 5,941 |
Philippines |  | 4,479 |  |  | 4,179 |  |  | 3,909 |
United Kingdom |  | 4,226 |  |  | 2,712 |  |  | 9,359 |
Taiwan |  | 3,743 |  |  | 2,005 |  |  | 1,705 |
Belgium |  | — |  |  | 4 |  |  | 4,511 |
Italy |  | — |  |  | — |  |  | 11,458 |
Total Non-United States |  | 947,579 |  |  | 957,092 |  |  | 785,059 |
|  | $ | 2,380,071 |  |  | $ | 1,362,496 |  |  | $ | 1,158,794 |
|  | Long-Lived Assets |  |
June 30, |  | 2020 |  | 2019
($000) |  |  |  |
United States |  | $ | 754,815 |  |  | $ | 345,866 |
Non-United States |  |  |  |
China |  | 369,544 |  |  | 108,688 |
United Kingdom |  | 55,028 |  |  | 60,369 |
Malaysia |  | 46,162 |  |  | — |
Switzerland |  | 37,129 |  |  | 35,592 |
Sweden |  | 24,270 |  |  | — |
Germany |  | 18,631 |  |  | 14,857 |
Australia |  | 12,321 |  |  | — |
Vietnam |  | 11,140 |  |  | 11,656 |
Philippines |  | 7,607 |  |  | 7,793 |
Korea |  | 3,438 |  |  | — |
Hong Kong |  | 2,870 |  |  | 5,032 |
Other |  | 1,965 |  |  | 1,190 |
Total Non-United States |  | 590,105 |  |  | 245,177 |
|  | $ | 1,344,920 |  |  | $ | 591,043 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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