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Reportable Segments | 3 Months Ended | 12 Months Ended
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Jun. 24, 2012 | Jun. 24, 2012
Segment Reporting [Abstract] |  |
Segment Reporting, Factors Used to Identify Entity's Reportable Segments | In reviewing these operating segments under ASC 280 for segment reporting purposes, the Company determined that the Company's operating segments are consistent with its reportable segments. This determination was based primarily on information the Chief Executive Officer now utilizes to evaluate operations and allocate resources. Other factors used to identify the Company's reportable segments included manufacturing processes, customer base, sales and marketing strategies, and distribution channels. Thus, the Company's operating and reportable segments include:
• | LED Products
• | Lighting Products
• | Power and RF Products
The Company's Chief Executive Officer reviews segment performance and allocates resources based upon segment revenues and segment gross profit. |
Segment Reporting Information, Description of Products and Services | Reportable Segments Description LED Products Segment The Company's LED Products segment includes LED chips, LED components, and SiC wafers. LED Chips LED Chip products include blue and green devices made from GaN and other materials. LED Chips or “die” are solid-state electronic components used in a number of applications and are currently available in a variety of brightness levels, wavelengths (color) and sizes. The Company uses LED chips internally in the manufacturing of LED components. LED Chips are also sold externally to customers for use in a variety of applications including video screens, gaming displays, function indicator lights, and automotive backlighting. LED Components LED component products include a range of packaged LED products from the Company's XLamp® LED components and LED modules for lighting applications to the Company's high-brightness LED components. The Company's XLamp LED components are lighting class packaged LED products designed to meet a broad range of market needs for lighting applications including general illumination (both indoor and outdoor applications), portable, architectural, signal and transportation lighting. The LED Components segment produces XLamp LED components for use by the Company's LED lighting segment (described below). The LED Components segment also sells XLamp LED components externally to manufacturing customers and manufacturing distributors for use in a variety of lighting applications. The Company's high brightness LED components consist of surface mount (SMD) and through-hole packaged LED products. The SMD LED component products are available in a full range of colors designed to meet a broad range of market needs. These products are sold to manufacturing customers and distributors in the video, signage, general illumination, automotive, gaming and specialty lighting markets. SiC Wafers The Company's SiC wafers are targeted for customers who use the wafers to manufacture products for optoelectronics, RF, power switching and other applications. Corporate, government and university customers also buy SiC materials for research and development directed at optoelectronics, RF, and high power devices. The Company sells its wafers as a bare wafer or with epitaxial films of SiC or GaN materials. Lighting Products Segment The Company's Lighting Products segment consists of both LED and traditional lighting systems. The Company designs, manufactures and sells lighting systems for indoor and outdoor applications, with its primary focus on LED lighting systems for the commercial and industrial markets. Lighting products are primarily sold to distributors who serve the indoor and outdoor lighting consumer and business-to-business markets. Power and RF Products Segment The Company's Power and RF Products segment includes power devices and RF devices. Power Devices The Company's power products are made from SiC and provide faster switching speeds than comparable silicon-based power devices for a given power level. Power products are sold primarily to government contractors and distributors. RF Devices The Company's RF devices are made from SiC or GaN and produce higher power densities as compared to silicon or gallium arsenide. RF devices are sold primarily to government contractors and distributors. |
Segment Reporting Disclosure |  | Reportable Segments The Company discloses information concerning its reportable segments in accordance with Accounting Standards Codification (ASC) 280, “Segment Reporting." Reportable segments are components of an entity that have separate financial data that the entity's chief operating decision maker regularly reviews when allocating resources and assessing the performance. The Company's chief operating decision maker is the Chief Executive Officer. During the fourth quarter of fiscal 2012, the Company completed modification of its internal management and reporting structure along three operating segments. In reviewing these operating segments under ASC 280 for segment reporting purposes, the Company determined that the Company's operating segments are consistent with its reportable segments. This determination was based primarily on information the Chief Executive Officer now utilizes to evaluate operations and allocate resources. Other factors used to identify the Company's reportable segments included manufacturing processes, customer base, sales and marketing strategies, and distribution channels. Thus, the Company's operating and reportable segments include:
• | LED Products
• | Lighting Products
• | Power and RF Products
The Company's Chief Executive Officer reviews segment performance and allocates resources based upon segment revenues and segment gross profit. Reportable Segments Description LED Products Segment The Company's LED Products segment includes LED chips, LED components, and SiC wafers. LED Chips LED Chip products include blue and green devices made from GaN and other materials. LED Chips or “die” are solid-state electronic components used in a number of applications and are currently available in a variety of brightness levels, wavelengths (color) and sizes. The Company uses LED chips internally in the manufacturing of LED components. LED Chips are also sold externally to customers for use in a variety of applications including video screens, gaming displays, function indicator lights, and automotive backlighting. LED Components LED component products include a range of packaged LED products from the Company's XLamp® LED components and LED modules for lighting applications to the Company's high-brightness LED components. The Company's XLamp LED components are lighting class packaged LED products designed to meet a broad range of market needs for lighting applications including general illumination (both indoor and outdoor applications), portable, architectural, signal and transportation lighting. The LED Components segment produces XLamp LED components for use by the Company's LED lighting segment (described below). The LED Components segment also sells XLamp LED components externally to manufacturing customers and manufacturing distributors for use in a variety of lighting applications. The Company's high brightness LED components consist of surface mount (SMD) and through-hole packaged LED products. The SMD LED component products are available in a full range of colors designed to meet a broad range of market needs. These products are sold to manufacturing customers and distributors in the video, signage, general illumination, automotive, gaming and specialty lighting markets. SiC Wafers The Company's SiC wafers are targeted for customers who use the wafers to manufacture products for optoelectronics, RF, power switching and other applications. Corporate, government and university customers also buy SiC materials for research and development directed at optoelectronics, RF, and high power devices. The Company sells its wafers as a bare wafer or with epitaxial films of SiC or GaN materials. Lighting Products Segment The Company's Lighting Products segment consists of both LED and traditional lighting systems. The Company designs, manufactures and sells lighting systems for indoor and outdoor applications, with its primary focus on LED lighting systems for the commercial and industrial markets. Lighting products are primarily sold to distributors who serve the indoor and outdoor lighting consumer and business-to-business markets. Power and RF Products Segment The Company's Power and RF Products segment includes power devices and RF devices. Power Devices The Company's power products are made from SiC and provide faster switching speeds than comparable silicon-based power devices for a given power level. Power products are sold primarily to government contractors and distributors. RF Devices The Company's RF devices are made from SiC or GaN and produce higher power densities as compared to silicon or gallium arsenide. RF devices are sold primarily to government contractors and distributors. Financial Results by Reportable Segment The following table reflects the results of the Company's reportable segments as reviewed by the Company's Chief Executive Officer for fiscal 2012, 2011 and 2010. The Company uses substantially the same accounting policies to derive the segment results reported below as those used in the Company's consolidated financial statements. The Company's Chief Executive Officer does not review inter-segment revenue when evaluating segment performance and allocating resources to each segment. Thus, inter-segment revenue is not included in the segment revenues presented in the following table. As such, total segment revenue in the table below is equal to the Company's consolidated revenue. In order to assign gross profit to each reportable segment, the Company allocates direct costs and indirect costs to each segment's cost of sales. The Company allocates indirect costs, such as employee benefits for manufacturing employees, shared facilities services, information technology, purchasing, and customer service, when the costs are identifiable and beneficial to the reportable segment. The Company allocates these indirect costs based on a reasonable measure of utilization that considers the specific facts and circumstances of the costs being allocated. Unallocated costs in the table below are not allocated to the reportable segments' gross profit because the Company's Chief Executive Officer does not review these costs when evaluating segment performance and allocating resources to each segment. These unallocated costs include variable compensation costs for manufacturing employees consisting primarily of stock-based compensation, expenses for profit sharing and quarterly or annual incentive plans, matching contributions under the Company's 401(k) plan, and acquisition related costs. The Company's Chief Executive Officer reviews gross profit as the lowest and only level of segment profit. Income statement items below gross profit, including corporate operating expenses (e.g., research and development, executive management cost, broad based sales and marketing, human resources, legal, accounting, finance, treasury), non-operating income/expense, net interest income, and income tax expense are not allocated to the reportable segments because the Company's Chief Executive Officer only reviews them on a consolidated basis. As such, all items below gross profit on the Consolidated Statements of Income can be added to consolidated gross profit presented in the following table to arrive at the Company's consolidated income before income taxes.
| Revenues |  | Gross Profit
(in thousands) | Year Ended |  | Year Ended
| June 24, 2012 |  | June 26, 2011 |  | June 27, 2010 |  | June 24, 2012 |  | June 26, 2011 |  | June 27, 2010
LED Products |  | $756,924 |  |  |  | $808,207 |  |  |  | $747,431 |  |  |  | $290,642 |  |  |  | $375,424 |  |  |  | $379,806 |
Lighting Products | 334,704 |  |  | 81,784 |  |  | 42,516 |  |  | 103,396 |  |  | 23,686 |  |  | 12,041 |
Power and RF Products | 73,030 |  |  | 97,624 |  |  | 77,340 |  |  | 32,051 |  |  | 49,828 |  |  | 34,358 |
Total segment reporting |  | $1,164,658 |  |  |  | $987,615 |  |  |  | $867,287 |  |  | 426,089 |  |  | 448,938 |  |  | 426,205 |
Unallocated costs |  |  |  |  |  |  | (16,627 | ) |  | (13,165 | ) |  | (15,098 | )
Consolidated gross profit |  |  |  |  |  |  |  | $409,462 |  |  |  | $435,773 |  |  |  | $411,107 |
Assets by Reportable Segment Inventory is the only asset reviewed by the Company's Chief Executive Officer when evaluating segment performance and allocating resources to the segments. The following table sets forth the Company's inventory by reportable segment for the fiscal years ended June 24, 2012 and June 26, 2011. Unallocated inventory in the table below is not allocated to the reportable segments because the Company's Chief Executive Officer does not review it when evaluating performance and allocating resources to each segment. Unallocated inventory primarily includes variable compensation costs for manufacturing employees consisting primarily of stock-based compensation, bonuses and matching contributions under the Company's 401(k) plan. The Company does not allocate assets other than inventory to the reportable segments because the Company's Chief Executive Officer does not review them when assessing segment performance and allocating resources. The Chief Executive Officer reviews all of the Company's assets other than inventory on a consolidated basis.
| Inventory, Net
(in thousands) | Year Ended
| June 24, 2012 |  | June 26, 2011
LED Products | $ | 109,262 |  |  | $ | 139,990 |
Lighting Products | 69,330 |  |  | 24,470 |
Power and RF Products | 6,100 |  |  | 8,618 |
Total segment reporting | 184,692 |  |  | 173,078 |
Unallocated inventory | 4,157 |  |  | 3,404 |
Consolidated inventory, net | $ | 188,849 |  |  | $ | 176,482 |
Geographic Information The Company conducts business in several geographic areas. The following table sets forth the percentage of revenues from external customers by geographic area for fiscal 2012, 2011 and 2010:
| Revenues from External Customers
| For the Years Ended
| June 24, 2012 |  | June 26, 2011 |  | June 27, 2010
China | 32 | % |  | 36 | % |  | 40 | %
United States | 38 | % |  | 24 | % |  | 19 | %
Europe | 14 | % |  | 14 | % |  | 13 | %
South Korea | 2 | % |  | 4 | % |  | 10 | %
Japan | 8 | % |  | 7 | % |  | 9 | %
Malaysia | 2 | % |  | 2 | % |  | 2 | %
Taiwan | 1 | % |  | 5 | % |  | 4 | %
Other | 3 | % |  | 8 | % |  | 3 | %
Total | 100 | % |  | 100 | % |  | 100 | %
The following table sets forth the Company’s net property and equipment by country for the fiscal years ended June 24, 2012 and June 26, 2011 (in thousands) :
| Long-Lived Assets
| As of
| June 24, 2012 |  | June 26, 2011
United States | $ | 452,249 |  |  | $ | 402,783 |
China | 125,868 |  |  | 143,846 |
Malaysia | 3,163 |  |  | 9,300 |
Other | 1,181 |  |  | $ | — |
Total | $ | 582,461 |  |  | $ | 555,929 |

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- Definition Description of the types of products and services from which the reportable segment derives its revenue. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -Paragraph 26 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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- Definition Description of the factors used to identify reportable segments, including the basis of organization (for example, whether management has chosen to organize the enterprise around differences in products and services, geographic areas, regulatory environments, or a combination of factors and whether operating segments have been aggregated to reportable segments). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -Paragraph 26 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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