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Segment and Geographic Reporting | 12 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Segment and Geographic Reporting | Segment and Geographic Reporting Our Chief Executive Officer has been identified as the chief operating decision maker (“CODM”) as he utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision-making process to assess performance. We determine our reportable business segments based on the way the CODM organizes business segments within the Company for making operating decisions and assessing performance. Effective July 1, 2022, we report our financial results in the following three segments: (i) Networking, (ii) Materials, and (iii) Lasers. Previously, financial results had been reported in the following two segments: (i) Photonic Solutions and (ii) Compound Semiconductors. The Networking segment represents the former Photonic Solutions segment and the Materials segment represents the former Compound Semiconductors segment. The Networking 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 Coherent’s four end markets, namely: communications, industrial, electronics, and instrumentation, with a concentration in the communications market. 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 & 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 Materials segment has locations in the United States, China, Vietnam, Germany, Japan, the United Kingdom, Italy, Malaysia, and Australia. 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 Lasers segment has locations in the United States, Germany, Scotland, Finland, Sweden, Switzerland, Spain, South Korea, Singapore, and Malaysia. The Lasers segment’s lasers and optics products serve industrial customers in semiconductor and display capital equipment, precision manufacturing, and aerospace & defense, as well as instrumentation customers in life sciences and scientific devices. To the extent possible, our corporate expenses are allocated to the segments. The Company’s CODM evaluates the performance of its segments 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, before its close, in the fiscal year ended June 30, 2022 and June 30, 2021. The following tables summarize selected financial information of our operations by segment:
|  | Networking |  | Materials |  | Lasers |  |  |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 2,340,930 |  |  | $ | 1,349,758 |  |  | $ | 1,469,412 |  |  |  |  | $ | — |  |  | $ | 5,160,100 |
Inter-segment revenues |  | 70,120 |  |  | 362,179 |  |  | 1,517 |  |  |  |  | (433,817) |  |  | — |
Operating income (loss) |  | 222,365 |  |  | 159,581 |  |  | (419,066) |  |  |  |  | — |  |  | (37,120) |
Interest expense |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (286,872) |
Other income, net |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (31,566) |
Income taxes |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 96,100 |
Net loss |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (259,458) |
Depreciation and amortization |  | 172,339 |  |  | 143,243 |  |  | 366,105 |  |  |  |  | — |  |  | 681,687 |
Expenditures for property, plant & equipment |  | 98,192 |  |  | 274,434 |  |  | 63,434 |  |  |  |  | — |  |  | 436,060 |
Segment assets |  | 3,316,555 |  |  | 2,561,156 |  |  | 7,833,422 |  |  |  |  | — |  |  | 13,711,133 |
Goodwill |  | 1,036,204 |  |  | 247,695 |  |  | 3,228,801 |  |  |  |  | — |  |  | 4,512,700 |
|  | Networking |  | Materials |  | Lasers |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 2,197,249 |  |  | $ | 1,119,367 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,316,616 |
Inter-segment revenues |  | 93,660 |  |  | 272,580 |  |  | — |  |  | (366,240) |  |  | — |
Operating income (loss) |  | 231,563 |  |  | 218,601 |  |  | — |  |  | (35,870) |  |  | 414,294 |
Interest expense |  | — |  |  | — |  |  | — |  |  | — |  |  | (121,254) |
Other income, net |  | — |  |  | — |  |  | — |  |  | — |  |  | (11,233) |
Income taxes |  | — |  |  | — |  |  | — |  |  | — |  |  | (47,048) |
Net earnings |  | — |  |  | — |  |  | — |  |  | — |  |  | 234,759 |
Depreciation and amortization |  | 172,092 |  |  | 114,687 |  |  | — |  |  | — |  |  | 286,779 |
Expenditures for property, plant & equipment |  | 89,616 |  |  | 224,716 |  |  | — |  |  | — |  |  | 314,332 |
Segment assets |  | 4,897,252 |  |  | 2,947,594 |  |  | — |  |  | — |  |  | 7,844,846 |
Goodwill |  | 1,013,277 |  |  | 272,482 |  |  | — |  |  | — |  |  | 1,285,759 |
|  | Networking |  | Materials |  | Lasers |  | Unallocated & Other |  | Total
($000) |  |  |  |  |  |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 2,004,310 |  |  | $ | 1,101,581 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,105,891 |
Inter-segment revenues |  | 76,284 |  |  | 203,481 |  |  | — |  |  | (279,765) |  |  | — |
Operating income |  | 201,453 |  |  | 227,438 |  |  | — |  |  | (26,772) |  |  | 402,119 |
Interest expense |  | — |  |  | — |  |  | — |  |  | — |  |  | (59,899) |
Other income, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 10,370 |
Income taxes |  | — |  |  | — |  |  | — |  |  | — |  |  | (55,038) |
Net earnings |  | — |  |  | — |  |  | — |  |  | — |  |  | 297,552 |
Depreciation and amortization |  | 160,458 |  |  | 109,611 |  |  | — |  |  | — |  |  | 270,069 |
Expenditures for property, plant & equipment |  | 85,482 |  |  | 60,855 |  |  | — |  |  | — |  |  | 146,337 |
Segment Assets |  | 4,240,869 |  |  | 2,271,781 |  |  | — |  |  | — |  |  | 6,512,650 |
Goodwill |  | 1,017,562 |  |  | 279,165 |  |  | — |  |  | — |  |  | 1,296,727 |
Geographic information for revenues by location of the customer’s headquarters, were as follows:
|  | Revenues
Year Ended June 30, |  | 2023 |  | 2022 |  | 2021
($000) |  |  |  |  |  |
North America |  | $ | 2,745,891 |  |  | $ | 1,771,385 |  |  | $ | 1,560,254 |
Europe |  | 979,911 |  |  | 623,157 |  |  | 567,703 |
China |  | 577,180 |  |  | 614,393 |  |  | 680,479 |
Japan |  | 392,479 |  |  | 196,512 |  |  | 203,655 |
Rest of World |  | 464,639 |  |  | 111,169 |  |  | 93,800 |
Total |  | $ | 5,160,100 |  |  | $ | 3,316,616 |  |  | $ | 3,105,891 |
Major Customers We had one major customer who accounted for 10% of consolidated revenue during fiscal 2023. The customer purchased primarily from our Networking segment. 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, |  | 2023 |  | 2022
($000) |  |  |  |
United States |  | $ | 1,069,012 |  |  | $ | 902,163 |
Non-United States |  |  |  |
China |  | 365,331 |  |  | 394,056 |
Germany |  | 216,336 |  |  | 14,521 |
United Kingdom |  | 77,474 |  |  | 63,898 |
Malaysia |  | 70,424 |  |  | 64,807 |
Switzerland |  | 47,110 |  |  | 40,540 |
Sweden |  | 38,981 |  |  | 28,030 |
Korea |  | 20,869 |  |  | 4,325 |
Vietnam |  | 17,739 |  |  | 16,844 |
Australia |  | 8,641 |  |  | 10,478 |
Taiwan |  | 7,883 |  |  | 7,025 |
Philippines |  | 7,205 |  |  | 7,375 |
Other |  | 24,853 |  |  | 3,996 |
Total Non-United States |  | $ | 902,846 |  |  | $ | 655,894 |
|  | $ | 1,971,858 |  |  | $ | 1,558,057 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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