XML 44 R24.htm IDEA: XBRL DOCUMENT
v3.25.2

Segment and Geographic Reporting | 12 Months Ended
--- | ---
Jun. 30, 2025
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. The Networking segment has locations in the United States, Australia, China, Germany, Malaysia, South Korea, Thailand, the Philippines, the United Kingdom, and Vietnam. 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 leverages Coherent’s compound semiconductor technology platforms and deep knowledge of end-user applications for our key end markets to deliver differentiated components, modules and subsystems. The Materials segment has locations in the United States, China, Germany, Italy, Japan, Singapore, South Korea, Sweden, Switzerland, Taiwan, the Philippines, the United Kingdom, and Vietnam. This segment address all of Coherent’s four end markets, namely: communications, industrial, electronics, and instrumentation, with concentrations in the industrial and electronics markets. The Materials segment is a market leader in engineered materials and optoelectronic devices, such as those based on ZnSe, ZnS, GaAs, InP, GaSb, and SiC. The Lasers segment has locations in the United States, Finland, Germany, Malaysia, Singapore, South Korea, Spain, Sweden, Switzerland, and the United Kingdom. The Lasers segment’s lasers and optics products serve industrial customers in both semiconductor and display capital equipment, precision manufacturing, and instrumentation customers in life sciences and scientific instrumentation. 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 in 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 Company derives its segment results directly from the manner in which results are reported in its management reporting system and the CODM uses segment profit to drive decisions in the forecasting process when making decisions about allocation capital and other resources to the segments. The accounting policies are consistent across each segment. Effective in 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 set forth the details of revenues and segment profit and reconciles segment profit to consolidated earnings (loss) before income taxes for the periods presented ($000):
2025 |  | Networking |  | Materials |  | Lasers |  | Unallocated |  | Total
Revenues |  | $ | 3,421,276 |  |  | $ | 953,843 |  |  | $ | 1,434,996 |  |  | $ | — |  |  | $ | 5,810,115 |
Inter-segment revenues |  | 58,465 |  |  | 547,601 |  |  | 8,310 |  |  | (614,376) |  |  | — |
Less: |  |  |  |  |  |  |  |  |  |
Cost of goods sold (1) |  | 2,507,154 |  |  | 856,668 |  |  | 836,592 |  |  | (614,376) |  |  | 3,586,038 |
Research and development (1) |  | 247,072 |  |  | 177,822 |  |  | 120,045 |  |  | — |  |  | 544,939 |
Selling, general and administrative (1) |  | 81,993 |  |  | 112,240 |  |  | 170,190 |  |  | — |  |  | 364,423 |
Segment profit |  | $ | 643,522 |  |  | $ | 354,714 |  |  | $ | 316,479 |  |  | $ | — |  |  | 1,314,715 |
Unallocated Corporate expenses |  |  |  |  |  |  |  |  |  |
Corporate and centralized function costs (2) |  |  |  |  |  |  |  |  |  | (277,771) |
Share-based compensation |  |  |  |  |  |  |  |  |  | (160,972) |
Restructuring costs (3) |  |  |  |  |  |  |  |  |  | (160,081) |
Impairment of assets held-for-sale |  |  |  |  |  |  |  |  |  | (84,988) |
Integration, site consolidation and other costs (4) |  |  |  |  |  |  |  |  |  | (38,237) |
Amortization of intangibles |  |  |  |  |  |  |  |  |  | (302,788) |
Interest expense |  |  |  |  |  |  |  |  |  | (243,251) |
Other (income) expense, net |  |  |  |  |  |  |  |  |  | 47,554 |
Earnings before income taxes |  |  |  |  |  |  |  |  |  | $ | 94,181 |
2024 |  | Networking |  | Materials |  | Lasers |  | Unallocated |  | Total
Revenues |  | $ | 2,295,729 |  |  | $ | 1,016,573 |  |  | $ | 1,395,386 |  |  | $ | — |  |  | $ | 4,707,688 |
Inter-segment revenues |  | 45,767 |  |  | 457,623 |  |  | 5,212 |  |  | (508,602) |  |  | — |
Less: |  |  |  |  |  |  |  |  |  |
Cost of goods sold (1) |  | 1,747,317 |  |  | 914,691 |  |  | 873,367 |  |  | (508,602) |  |  | 3,026,773 |
Research and development (1) |  | 174,530 |  |  | 161,402 |  |  | 110,515 |  |  | — |  |  | 446,447 |
Selling, general and administrative (1) |  | 65,997 |  |  | 101,229 |  |  | 209,933 |  |  | — |  |  | 377,159 |
Segment profit |  | $ | 353,652 |  |  | $ | 296,874 |  |  | $ | 206,783 |  |  | $ | — |  |  | 857,309 |
Unallocated Corporate expenses |  |  |  |  |  |  |  |  |  |
Corporate and centralized function costs (2) |  |  |  |  |  |  |  |  |  | (239,259) |
Share-based compensation |  |  |  |  |  |  |  |  |  | (126,895) |
Restructuring costs (3) |  |  |  |  |  |  |  |  |  | (27,054) |
Integration, site consolidation and other costs (4) |  |  |  |  |  |  |  |  |  | (79,820) |
Amortization of intangibles |  |  |  |  |  |  |  |  |  | (288,160) |
Interest expense |  |  |  |  |  |  |  |  |  | (288,475) |
Other (income) expense, net |  |  |  |  |  |  |  |  |  | 44,707 |
Earnings (loss) before income taxes |  |  |  |  |  |  |  |  |  | (147,647) |
2023 |  | Networking |  | Materials |  | Lasers |  | Unallocated |  | Total
Revenues |  | $ | 2,340,930 |  |  | $ | 1,349,758 |  |  | $ | 1,469,412 |  |  | $ | — |  |  | $ | 5,160,100 |
Inter-segment revenues |  | 70,120 |  |  | 362,179 |  |  | 1,517 |  |  | (433,816) |  |  | — |
Less: |  |  |  |  |  |  |  |  |  |
Cost of goods sold (1) |  | 1,701,681 |  |  | 1,061,062 |  |  | 866,195 |  |  | (433,816) |  |  | 3,195,122 |
Research and development (1) |  | 180,350 |  |  | 168,209 |  |  | 123,568 |  |  | — |  |  | 472,127 |
Selling, general and administrative (1) |  | 64,093 |  |  | 91,164 |  |  | 210,611 |  |  | — |  |  | 365,868 |
Segment profit |  | 464,926 |  |  | 391,502 |  |  | 270,555 |  |  | — |  |  | 1,126,983 |
Unallocated Corporate expenses |  |  |  |  |  |  |  |  |  |
Corporate and centralized function costs (2.) |  |  |  |  |  |  |  |  |  | (199,811) |
Share-based compensation |  |  |  |  |  |  |  |  |  | (149,631) |
Restructuring costs and other (3) |  |  |  |  |  |  |  |  |  | (119,101) |
Integration, site consolidation and other costs (4) |  |  |  |  |  |  |  |  |  | (81,503) |
Amortization of intangibles |  |  |  |  |  |  |  |  |  | (414,125) |
Interest expense |  |  |  |  |  |  |  |  |  | (286,872) |
Purchase accounting adjustments |  |  |  |  |  |  |  |  |  | (157,500) |
Transaction costs |  |  |  |  |  |  |  |  |  | (38,652) |
Other (income) expense, net |  |  |  |  |  |  |  |  |  | (31,566) |
Other |  |  |  |  |  |  |  |  |  | (3,780) |
Earnings (loss) before income taxes |  |  |  |  |  |  |  |  |  | $ | (355,558) |
(1)The significant expense category amount aligns with the segment-level information that is regularly provided to the CODM and excludes unallocated corporate expenses (corporate and centralized function costs, share-based compensation, restructuring costs, integration, site consolidation and other costs as well as amortization of intangibles). (2)We do not allocate corporate and centralized function costs that are not directly attributable to our operating segments. (3)See Note 20. Restructuring Plans for further information. (4)Integration and site consolidation costs in the year ended June 30, 2025 includes $35 million in consulting and legal costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, $2 million of employee severance and retention costs related to sites being shut down as part of our Synergy and Site Consolidation Plan, and $1 million of executive transition costs. Integration and site consolidation costs in the year ended June 30, 2024 primarily include $40 million in consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, and $40 million of employee severance and retention and other costs related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan. Integration and site consolidation costs in the year ended June 30, 2023 primarily include $46 million in consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, and $36 million of employee severance and retention and other costs related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan. The following tables summarizes capital expenditures by segment ($000):
| Year Ended June 30,
Expenditures for property, plant, and equipment | 2025 |  | 2024 |  | 2023
Networking | $ | 263,425 |  |  | $ | 90,950 |  |  | $ | 98,192 |
Materials | 137,444 |  |  | 224,482 |  |  | 274,434 |
Lasers | 39,967 |  |  | 31,384 |  |  | 63,434 |
Total expenditures for property, plant, and equipment | $ | 440,836 |  |  | $ | 346,816 |  |  | $ | 436,060 |
The following tables summarizes depreciation and amortization by segment ($000):
|  | Year Ended June 30,
Depreciation and amortization |  | 2025 |  | 2024 |  | 2023
Networking |  | $ | 162,225 |  |  | $ | 158,833 |  |  | $ | 169,573 |
Materials |  | 119,118 |  |  | 107,798 |  |  | 141,648 |
Lasers |  | 267,328 |  |  | 287,662 |  |  | 364,370 |
Corporate and shared services |  | 4,927 |  |  | 5,468 |  |  | 6,096 |
Total depreciation and amortization |  | $ | 553,598 |  |  | $ | 559,761 |  |  | $ | 681,687 |
The following tables summarizes segment assets ($000):
|  | Year Ended June 30,
Segment assets and reconciliation to total assets |  | 2025 |  | 2024 |  | 2023
Networking |  | $ | 4,027,777 |  |  | $ | 3,472,866 |  |  | $ | 3,188,873 |
Materials |  | 2,779,093 |  |  | 3,017,858 |  |  | 2,043,241 |
Lasers |  | 7,541,129 |  |  | 7,361,731 |  |  | 7,751,937 |
Corporate and shared services |  | 562,937 |  |  | 636,179 |  |  | 727,082 |
Total assets |  | $ | 14,910,936 |  |  | $ | 14,488,634 |  |  | $ | 13,711,133 |
Geographic information for revenues by location of the customer’s headquarters, were as follows ($000):
|  | Revenues
Year Ended June 30, |  | 2025 |  | 2024 |  | 2023
North America |  | $ | 3,564,846 |  |  | $ | 2,622,569 |  |  | $ | 2,745,891 |
Europe |  | 698,800 |  |  | 714,282 |  |  | 979,911 |
China |  | 680,110 |  |  | 621,918 |  |  | 577,180 |
Japan |  | 390,610 |  |  | 340,863 |  |  | 392,479 |
Rest of World |  | 475,749 |  |  | 408,056 |  |  | 464,639 |
Total |  | $ | 5,810,115 |  |  | $ | 4,707,688 |  |  | $ | 5,160,100 |
Major Customers We had two major customers who accounted for 12% and 10% of consolidated revenue during fiscal 2025. We had a different major customer who accounted for 10% of consolidated revenue during fiscal 2024. We had a major customer who accounted for 10% of consolidated revenue during fiscal 2023. These customers 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 ($000):
|  | Long-Lived Assets
June 30, |  | 2025 |  | 2024
United States |  | $ | 1,092,389 |  |  | $ | 1,226,359 |
Non-United States |  |  |  |
China |  | 402,960 |  |  | 349,195 |
Malaysia |  | 196,543 |  |  | 87,783 |
Germany |  | 189,281 |  |  | 209,593 |
Vietnam |  | 65,565 |  |  | 20,707 |
Sweden |  | 51,032 |  |  | 44,733 |
Switzerland |  | 49,602 |  |  | 44,256 |
Philippines |  | 25,406 |  |  | 11,217 |
United Kingdom |  | 20,594 |  |  | 19,153 |
Korea |  | 16,037 |  |  | 17,862 |
Australia |  | 9,014 |  |  | 8,611 |
Taiwan |  | 6,063 |  |  | 6,705 |
Other |  | 23,044 |  |  | 23,166 |
Total Non-United States |  | 1,055,141 |  |  | 842,981 |
|  | $ | 2,147,530 |  |  | $ | 2,069,340 |
Change in Reportable Segments in Fiscal 2026 Effective July 1, 2025 for our fiscal year 2026, the Company realigned its organizational structure into two reporting segments: (i) Datacenter and Communications, and (ii) Industrial. The Company will report financial information for these new reporting segments in fiscal 2026. This change in reporting is to occur beginning with periods commencing July 1, 2025.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: 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 3: 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 Reference 4: 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 5: 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 6: 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 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef -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 12: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 14: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 15: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 16: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 17: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 18: 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 19: 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 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 22: 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 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 24: 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 25: 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 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration