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Segment Information
 6 Months Ended
Dec. 31, 2016
Segment Information  
Segment Information

11. Segment Information

 

The Company has determined that it operates in three identifiable industry segments: (a) security and inspection systems (Security division), (b) medical monitoring and anesthesia systems (Healthcare division) and (c) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division). The Company also has a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses; expenses related to stock issuances and legal, audit and other professional service fees not allocated to product segments. Both the Security and Healthcare divisions comprise primarily end-product businesses whereas the businesses of the Optoelectronics and Manufacturing division primarily supply components and subsystems to OEM customers, including to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values. All other accounting policies of the segments are the same as described in Note 1, Summary of Significant Accounting Policies of the Form 10-K for the fiscal year ended June 30, 2016.

 

The following tables present the operations and identifiable assets by industry segment (in thousands):

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December  31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Revenues (1) — by Segment:

 

 

 

 

 

 

 

 

 

Security Division

 

$
93,720

 

$
139,504

 

$
190,130

 

$
263,213

 

Healthcare Division

 
55,548

 
51,110

 
107,013

 
96,760

 

Optoelectronics and Manufacturing Division, including intersegment revenues

 
60,560

 
60,602

 
123,108

 
117,556

 

Intersegment revenues elimination

 
(12,489

)
(8,668

)
(22,862

)
(14,126

)

 

 

 

 

 

 

 

 

 

 

Total

 

$
197,339

 

$
242,548

 

$
397,389

 

$
463,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
December  31,

 

Six Months Ended
December  31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Operating income (loss) — by Segment:

 

 

 

 

 

 

 

 

 

Security Division

 

$
2,534

 

$
9,130

 

$
15,169

 

$
18,480

 

Healthcare Division

 
3,380

 
801

 
6,318

 
(2,463

)

Optoelectronics and Manufacturing Division

 
3,192

 
5,525

 
8,753

 
10,175

 

Corporate

 
(7,903

)
(6,802

)
(13,105

)
(15,815

)

Eliminations (2)

 
(422

)
39

 
(657

)
415

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
781

 

$
8,693

 

$
16,478

 

$
10,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,
2016

 

December 31,
2016

 

Assets — by Segment:

 

 

 

 

 

Security Division

 

$
519,068

 

$
836,182

 

Healthcare Division

 
200,067

 
192,909

 

Optoelectronics and Manufacturing Division

 
211,337

 
196,311

 

Corporate

 
64,970

 
35,907

 

Eliminations (2)

 
(3,719

)
(3,304

)

 

 

 

 

 

 

Total

 

$
991,723

 
1,258,005

 

 

 

 

 

 

 

 

 

(1)

For the three months ended December 31, 2015 and 2016, one customer, SAT in Mexico, accounted for 14% and 12% of total net revenues, respectively. For the six months ended December 31, 2015 and 2016, SAT accounted for 15% and 13% of total net revenues, respectively.

 

(2)

Eliminations within operating income primarily reflect the change in the elimination of intercompany profit in inventory not-yet-realized. Eliminations in assets reflect the amount of intercompany profits in inventory as of the balance sheet date. Such intercompany profit will be realized when inventory is shipped to the external customers of the Security and Healthcare divisions.