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Reportable Segments
 6 Months Ended
Dec. 29, 2013
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments

The Company's operating and reportable segments are:
•
LED Products
•
Lighting Products
•
Power and RF Products
Reportable Segments Description
The Company's LED Products segment includes LED chips, LED components and SiC materials. The Company's Lighting Products segment consists of both LED and traditional lighting systems, with its primary focus on LED lighting. The Company's Power and RF Products segment includes power devices and RF devices.
Financial Results by Reportable Segment
The table below reflects the results of the Company's reportable segments as reviewed by the Chief Operating Decision Maker (CODM) for the three and six months ended December 29, 2013 and December 30, 2012. The Company's CODM is the Chief Executive Officer. 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 CODM 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 table below. As such, total segment revenue in the table below is equal to the Company's consolidated revenue.
The Company's CODM reviews gross profit as the lowest and only level of segment profit. As such, all items below gross profit in the consolidated statements of income must be included to reconcile the consolidated gross profit presented in the table below to the Company's consolidated income before income taxes.
In order to determine gross profit for each reportable segment, the Company allocates direct costs and indirect costs to each segment's cost of revenue. 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 consist primarily of manufacturing employees' 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. These costs are not allocated to the reportable segments’ gross profit because the Company’s CODM does not review them regularly when evaluating segment performance and allocating resources.
Revenues, gross profit and gross margin for each of the Company's segments were as follows (in thousands, except percentages):
 
Three Months Ended
 
Six Months Ended
 
December 29,
2013
 
December 30,
2012
 
December 29,
2013
 
December 30,
2012
Revenues:
 
 
 
 
 
 
 
LED Products

$215,022

 

$200,962

 

$433,045

 

$388,509

Lighting Products
173,656

 
122,714

 
321,574

 
230,787

Power and RF Products
26,408

 
22,610

 
51,473

 
42,743

Total revenue

$415,086

 

$346,286

 

$806,092

 

$662,039

 
 
 
 
 
 
 
 
Gross Profit and Gross Margin:
 
 
 
 
 
 
 
LED Products gross profit

$97,644

 

$84,186

 

$199,297

 

$159,653

LED Products gross margin
45.4
%
 
41.9
%
 
46.0
%
 
41.1
%
Lighting Products gross profit
48,426

 
41,383

 
88,244

 
75,483

Lighting Products gross margin
27.9
%
 
33.7
%
 
27.4
%
 
32.7
%
Power and RF Products gross profit
15,321

 
12,798

 
28,777

 
23,220

Power and RF Products gross margin
58.0
%
 
56.6
%
 
55.9
%
 
54.3
%
Total segment reporting
161,391

 
138,367

 
316,318

 
258,356

Unallocated costs
(5,613
)
 
(4,891
)
 
(9,783
)
 
(8,831
)
Consolidated gross profit

$155,778

 

$133,476

 

$306,535

 

$249,525

Consolidated gross margin
37.5
%
 
38.5
%
 
38.0
%
 
37.7
%