XML 33 R22.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Reporting
 3 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company reports its business segments using the “management approach” model for segment reporting. This means that we determine our reportable business segments based on the way the chief operating decision-maker (“CODM”) analyzes business segments within the Company for making operating decisions and assessing financial performance.
We report our financial results in the following three segments: (i) Networking, (ii) Materials, and (iii) Lasers. Our CODM receives and reviews financial information based on these three segments. During the first quarter of fiscal 2025 as a result of a new CEO joining the Company in the fourth quarter of fiscal 2024, our CODM implemented changes in the measure he uses to allocate resources and assess performance. Our CODM now evaluates each segment’s performance and allocates resources based on segment revenue and segment profit, instead of operating income, as our CODM believes segment profit is a more comprehensive profitability measure for each operating segment. Segment profit includes operating expenses directly managed by operating segments, including research and development, direct sales, marketing and administrative expenses. Segment profit does not include share-based compensation, acquisition or integration related costs, amortization and impairment of acquisition-related intangible assets, restructuring charges, and certain other charges. Additionally, effective the first quarter of fiscal 2025, we no longer allocate Corporate strategic research and development, strategic marketing and sales expenses and shared general and administrative expenses, as these expenses are not directly attributable to our operating segments. The segments are managed separately due to the market, production requirements and facilities unique to each segment. The accounting policies are consistent across each segment. Effective the first quarter of fiscal 2025, we no longer allocate corporate assets to the segments.
Comparative prior period segment information has been recast to conform to the new segment profitability measure. The change in our operating segment measure had no impact on our previously reported consolidated results of operations, financial condition, or cash flows.
The following tables summarize selected financial information of our operations by segment and reconciles segment profit to consolidated earnings (loss) before income taxes for the periods presented ($000):
Three Months Ended
September 30,
20242023
Segment revenue
Networking$762,872 $472,849 
Materials237,427 244,640 
Lasers347,836 335,594 
Total segment revenue1,348,135 1,053,083 
Intersegment revenue
Networking14,427 12,887 
Materials132,168 87,742 
Lasers1,564 639 
Unallocated(148,159)(101,268)
Total intersegment revenue— — 
Segment profit
Networking140,276 67,193 
Materials96,647 57,815 
Lasers68,785 52,900 
Total segment profit305,708 177,908 
Unallocated Corporate items:
Corporate and centralized function costs (1)
(73,102)(45,535)
Share-based compensation(35,478)(44,524)
Restructuring costs (2)
(24,364)(3,018)
Integration, site consolidated and other costs (3)
(25,702)(33,074)
Amortization of intangibles(71,862)(72,662)
Start-up costs— (403)
Interest expense(66,644)(73,258)
Other (income) expense, net10,749 6,269 
Earnings (loss) before income taxes$19,303 $(88,297)
Expenditures for property, plant, and equipment
Networking$48,686 $17,493 
Materials33,796 40,512 
Lasers9,502 4,192 
Total expenditures for property, plant, and equipment$91,984 $62,197 
Segment assets and reconciliation to total assets
Networking$3,495,881 $3,200,796 
Materials2,911,978 2,027,164 
Lasers7,536,963 7,569,884 
Corporate and shared services754,478 723,454 
Total assets$14,699,300 $13,521,298 
(1)We do not allocate corporate and centralized function costs that are not directly attributable to our operating segments.
(2)See Note 17. Restructuring Plan for further information.
(3)Integration and site consolidation costs in the three months ended September 30, 2024 include $12 million consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, $9 million of manufacturing inefficiencies, employee severance and retention costs and duplicative labor related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan, $4 million charges for products that are end-of-life and $1 million of severance related to the retirement of executives. Integration and site consolidation costs in the three months ended September 30, 2023 include $17 million of manufacturing inefficiencies, employee severance and retention costs and duplicative labor related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan, $7 million consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, $7 million charges for products that are end-of-life, including inventory, production equipment to produce those products and $2 million of severance related to the retirement of executives.