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Segment and Geographic Reporting | 12 Months Ended
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Jun. 30, 2022
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. 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 address all of II-VI's seven end markets, namely: communications, industrial, aerospace & defense, consumer electronics, semiconductor capital equipment, life sciences and automotive. This segment designs, manufactures and markets the following products: (i) optical and electro-optical components and materials used primarily in CO 2 lasers, fiber-lasers and direct diode lasers for materials processing applications; (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; (iv) engineered materials for thermoelectric, ceramics and silicon carbide for a wide range of applications; and (v) compound semiconductor epitaxial wafers for applications in optical and wireless communication. 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 (i) transceivers for data centers and telecom optical networks; (ii) pump lasers, optical amplifiers, wavelength selective switches and advanced components for telecom networks; (iii) crystal materials, optics, lasers and optoelectronic modules for a wide range of applications, including in optical communications, life sciences, and consumer electronics markets. 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 Coherent acquisition in the fiscal years ended June 30, 2022 and June 30, 2021. In the fiscal year ended June 30, 2020, it included transaction costs related to the Finisar acquisition. The following tables summarize selected financial information of the Company’s operations by segment:
|  | Photonic Solutions |  | Compound Semiconductors |  |  |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 2,226,196 |  |  | $ | 1,090,420 |  |  |  |  | $ | — |  |  | $ | 3,316,616 |
Inter-segment revenues |  | 36,898 |  |  | 329,342 |  |  |  |  | (366,240) |  |  | — |
Operating income (loss) |  | 230,094 |  |  | 220,070 |  |  |  |  | (35,870) |  |  | 414,294 |
Interest expense |  | — |  |  | — |  |  |  |  | — |  |  | (121,254) |
Other income, net |  | — |  |  | — |  |  |  |  | — |  |  | (11,233) |
Income taxes |  | — |  |  | — |  |  |  |  | — |  |  | (47,048) |
Net earnings |  | — |  |  | — |  |  |  |  | — |  |  | 234,759 |
Depreciation and amortization |  | 172,851 |  |  | 113,928 |  |  |  |  | — |  |  | 286,779 |
Expenditures for property, plant & equipment |  | 89,818 |  |  | 224,514 |  |  |  |  | — |  |  | 314,332 |
Segment assets |  | 4,875,053 |  |  | 2,969,793 |  |  |  |  | — |  |  | 7,844,846 |
Goodwill |  | 1,048,743 |  |  | 237,016 |  |  |  |  | — |  |  | 1,285,759 |
|  | Photonic Solutions |  | Compound Semiconductors |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |
2021 |  |  |  |  |  |  |  |
Revenues |  | $ | 2,038,284 |  |  | $ | 1,067,607 |  |  | $ | — |  |  | $ | 3,105,891 |
Inter-segment revenues |  | 35,358 |  |  | 244,407 |  |  | (279,765) |  |  | — |
Operating income (loss) |  | 207,652 |  |  | 221,239 |  |  | (26,772) |  |  | 402,119 |
Interest expense |  | — |  |  | — |  |  | — |  |  | (59,899) |
Other income, net |  | — |  |  | — |  |  | — |  |  | 10,370 |
Income taxes |  | — |  |  | — |  |  | — |  |  | (55,038) |
Net loss |  | — |  |  | — |  |  | — |  |  | 297,552 |
Depreciation and amortization |  | 161,208 |  |  | 108,861 |  |  | — |  |  | 270,069 |
Expenditures for property, plant & equipment |  | 87,304 |  |  | 59,033 |  |  | — |  |  | 146,337 |
Segment assets |  | 4,231,289 |  |  | 2,281,361 |  |  | — |  |  | 6,512,650 |
Goodwill |  | 1,053,028 |  |  | 243,699 |  |  | — |  |  | 1,296,727 |
|  | 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 |  | 49,930 |  |  | 62,279 |  |  | (72,730) |  |  | 39,479 |
Interest expense |  | — |  |  | — |  |  | — |  |  | (89,409) |
Other income, net |  | — |  |  | — |  |  | — |  |  | (13,998) |
Income taxes |  | — |  |  | — |  |  | — |  |  | (3,101) |
Net earnings |  | — |  |  | — |  |  | — |  |  | (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 |
Geographic information for revenues by location of the customer's headquarters, were as follows:
|  | Revenues
Year Ended June 30, |  | 2022 |  | 2021 |  | 2020
($000) |  |  |  |  |  |
North America |  | $ | 1,771,385 |  |  | $ | 1,560,254 |  |  | $ | 1,085,146 |
Europe |  | 623,157 |  |  | 567,703 |  |  | 437,908 |
China |  | 614,393 |  |  | 680,479 |  |  | 483,393 |
Japan |  | 196,512 |  |  | 203,655 |  |  | 183,587 |
Rest of World |  | 111,169 |  |  | 93,800 |  |  | 190,038 |
Total |  | $ | 3,316,616 |  |  | $ | 3,105,891 |  |  | $ | 2,380,071 |
Geographic information for long-lived assets by country, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows:
|  | Long-Lived Assets
June 30, |  | 2022 |  | 2021
($000) |  |  |  |
United States |  | $ | 902,163 |  |  | $ | 737,151 |
Non-United States |  |  |  |
China |  | 394,056 |  |  | 402,987 |
United Kingdom |  | 63,898 |  |  | 60,090 |
Malaysia |  | 64,807 |  |  | 53,187 |
Switzerland |  | 40,540 |  |  | 37,121 |
Sweden |  | 28,030 |  |  | 27,374 |
Germany |  | 14,521 |  |  | 16,703 |
Australia |  | 10,478 |  |  | 13,627 |
Vietnam |  | 16,844 |  |  | 10,246 |
Philippines |  | 7,375 |  |  | 7,890 |
Taiwan |  | 7,025 |  |  | 6,532 |
Korea |  | 4,325 |  |  | 4,595 |
Hong Kong |  | 1,645 |  |  | 2,104 |
Other |  | 2,350 |  |  | 1,916 |
Total Non-United States |  | $ | 655,894 |  |  | $ | 644,372 |
|  | $ | 1,558,057 |  |  | $ | 1,381,523 |

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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