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Reportable Segments
 3 Months Ended 12 Months Ended
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