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Acquisitions | 12 Months Ended
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Jun. 30, 2021
Equity Method Investments and Joint Ventures [Abstract] |
Acquisitions | Acquisitions Acquisition of Ascatron AB On August 20, 2020, the Company acquired all of the outstanding shares of Ascatron, located in Sweden. The acquisition will add essential elements to the Company's vertically integrated silicon carbide technology platform. Purchase price consideration totaled $37 million. The Company utilized the widely accepted income-based approach (relief-from-royalty method) to perform the preliminary purchase price allocation. The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisitions ($000):
| Previously Reported September 30, 2020 |  | Measurement Period Adjustments (a) |  | As Adjusted
Assets |  |  |  |  |
Developed technology | $ | 20,000 |  |  | $ | (3,622) |  |  | $ | 16,378 |
Goodwill | 18,922 |  |  | 3,018 |  |  | 21,940 |
Other assets | 2,511 |  |  | 683 |  |  | 3,194 |
Total assets acquired | $ | 41,433 |  |  | $ | 79 |  |  | $ | 41,512 |
Liabilities |  |  |  |  |
Non-interest bearing liabilities | $ | (203) |  |  | $ | (1,101) |  |  | $ | (1,304) |
Deferred tax liability | (4,526) |  |  | 1,022 |  |  | (3,504) |
Total liabilities assumed | (4,729) |  |  | (79) |  |  | (4,808) |
Net assets acquired | $ | 36,704 |  |  | $ | — |  |  | $ | 36,704 |
(a) The Company recorded measurement period adjustments to its preliminary acquisition date fair values due to the refinement of its valuation models, assumptions and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date. The goodwill is recorded in the Compound Semiconductors segment and is attributed to the workforce acquired as part of the transaction. The goodwill is non-deductible for income tax purposes. Transaction expenses related to the acquisition totaled $2 million for the year ended June 30, 2021 and are included in Selling, General and Administrative expenses in the Consolidated Statements of Earnings (Loss). Technology is being amortized with a useful life of approximately 17 years. The revenues and net loss from Ascatron included in the Company's Consolidated Statement of Earnings (Loss) for the year ended June 30, 2021 were $1 million and $3 million, respectively. Certain data necessary to complete the purchase price allocation remains preliminary, including, but not limited to, finalization of certain income tax computations and other assumed liabilities. The Company expects to complete the purchase price allocation within 12 months from the Closing Date, at which time the purchase price allocation set forth herein may be revised. Purchase of Equity Investment in INNOViON Corporation On October 1, 2020, II-VI acquired the remaining 6.1% interest in Innovion for $4 million. Innovion is a provider of ion implantation services supporting unique capabilities in semiconductor materials processing. This acquisition will add essential elements to the Company's vertically integrated silicon carbide technology platform. Through the period ended December 31, 2020, the Company held a 93.9% investment in Innovion which was accounted for as an equity method investment. The Company accounted for the acquisition of the remaining equity of Innovion as a step acquisition, which required remeasurement of the Company's previous ownership interest to fair value prior to completing purchase accounting. Using step acquisition accounting the Company increased the value of its previously held equity investment to its fair value of $67 million, which resulted in a gain of approximately $7 million, recorded in other expense (income), net in the Consolidated Statements of Earnings (Loss) in the second quarter of fiscal year 2021. The Company utilized widely accepted income-based, market-based, and cost-based valuation approaches to perform the preliminary purchase price allocation and determine the fair value of the previously held equity method investment. Income-based valuation approaches included the use of the multi-period excess earnings and relief-from-royalty methods for certain acquired intangible assets. The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000):
| Previously Reported December 31, 2020 |  | Measurement Period Adjustments (a) |  | As Adjusted
Assets |  |  |  |  |
Developed technology | $ | 15,000 |  |  | $ | (240) |  |  | $ | 14,760 |
Customer lists | 10,000 |  |  | (1,003) |  |  | 8,997 |
Goodwill | 29,478 |  |  | 3,216 |  |  | 32,694 |
Property, plant, & equipment | 16,556 |  |  | (1,832) |  |  | 14,724 |
ROU Asset | 10,644 |  |  | 1,893 |  |  | 12,537 |
Other assets | 12,450 |  |  | (643) |  |  | 11,807 |
Total assets acquired | $ | 94,128 |  |  | $ | 1,391 |  |  | $ | 95,519 |
Liabilities |  |  |  |  |
Non-interest bearing liabilities | $ | (14,050) |  |  | $ | (1,788) |  |  | $ | (15,838) |
Interest bearing liabilities | (3,430) |  |  | — |  |  | (3,430) |
Deferred tax liabilities | (5,743) |  |  | 397 |  |  | (5,346) |
Total liabilities assumed | $ | (23,223) |  |  | $ | (1,391) |  |  | $ | (24,614) |
Net assets acquired | $ | 70,905 |  |  | $ | — |  |  | $ | 70,905 |
(a) The Company recorded measurement period adjustments to its preliminary acquisition date fair values due to the refinement of its valuation models, assumptions and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date. The goodwill is recorded in the Compound Semiconductor segment and is attributed to the workforce acquired as part of the transaction. The goodwill is non-deductible for income tax purposes. Technology is being amortized with a useful life of approximately 16 years. Customer lists are being amortized with a useful life of approximately 14 years. Transaction expenses for the year ended June 30, 2021 were insignificant. The revenues from Innovion included in the Company's Consolidated Statement of Earnings for the year ended June 30, 2021 was $21 million. The net income for the same period was $1 million.

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 + Details
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