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Segment Information
 9 Months Ended
Mar. 31, 2017
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
March 31,

 

Nine Months Ended
March 31,

 

 

 

2016

 

2017

 

2016

 

2017

 

Revenues (1) — by Segment:

 

 

 

 

 

 

 

 

 

Security Division

 

$
110,550

 

$
144,824

 

$
300,680

 

$
408,037

 

Healthcare Division

 
49,113

 
49,667

 
156,126

 
146,427

 

Optoelectronics and Manufacturing Division, including intersegment revenues

 
61,306

 
58,309

 
184,414

 
175,864

 

Intersegment revenues elimination

 
(10,165

)
(7,654

)
(33,027

)
(21,779

)

 

 

 

 

 

 

 

 

 

 

Total

 

$
210,804

 

$
245,146

 

$
608,193

 

$
708,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

Nine Months Ended
March 31,

 

 

 

 

 

 

 

 

 

2016

 

2017

 

2016

 

2017

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) — by Segment:

 

 

 

 

 

 

 

 

 

Security Division

 

$
14,554

 

$
18,287

 

$
29,723

 

$
36,767

 

Healthcare Division

 
(188

)
936

 
6,130

 
(1,527

)

Optoelectronics and Manufacturing Division

 
5,325

 
5,974

 
14,078

 
16,149

 

Corporate

 
(6,077

)
(6,067

)
(19,182

)
(21,882

)

Eliminations (2)

 
(270

)
564

 
(927

)
979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
13,344

 

$
19,694

 

$
29,822

 

$
30,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,
2016

 

March 31,
2017

 

Assets — by Segment:

 

 

 

 

 

Security Division

 

$
519,068

 

$
818,058

 

Healthcare Division

 
200,067

 
177,562

 

Optoelectronics and Manufacturing Division

 
211,337

 
199,320

 

Corporate

 
64,970

 
43,536

 

Eliminations (2)

 
(3,719

)
(2,739

)

 

 

 

 

 

 

Total

 

$
991,723

 
1,235,737

 

 

 

 

 

 

 

 

 

(1)

For the three and nine months ended March 31, 2016 and 2017, one customer, SAT in Mexico, accounted for 14% and 12% 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.