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Reportable Segments
 9 Months Ended
Mar. 30, 2014
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 primarily consists of LED lighting systems. 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 nine months ended March 30, 2014 and March 31, 2013. 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
 
Nine Months Ended
 
March 30,
2014
 
March 31,
2013
 
March 30,
2014
 
March 31,
2013
Revenues:
 
 
 
 
 
 
 
LED Products

$201,119

 

$195,561

 

$634,164

 

$584,070

Lighting Products
176,691

 
130,659

 
498,265

 
361,446

Power and RF Products
27,449

 
22,714

 
78,922

 
65,457

Total revenue

$405,259

 

$348,934

 

$1,211,351

 

$1,010,973

 
 
 
 
 
 
 
 
Gross Profit and Gross Margin:
 
 
 
 
 
 
 
LED Products gross profit

$91,634

 

$85,728

 

$290,931

 

$245,381

LED Products gross margin
45.6
%
 
43.8
%
 
45.9
%
 
42.0
%
Lighting Products gross profit
48,487

 
39,966

 
136,731

 
115,449

Lighting Products gross margin
27.4
%
 
30.6
%
 
27.4
%
 
31.9
%
Power and RF Products gross profit
15,675

 
12,033

 
44,452

 
35,253

Power and RF Products gross margin
57.1
%
 
53.0
%
 
56.3
%
 
53.9
%
Total segment gross profit
155,796

 
137,727

 
472,114

 
396,083

Unallocated costs
(5,802
)
 
(4,717
)
 
(15,585
)
 
(13,548
)
Consolidated gross profit

$149,994

 

$133,010

 

$456,529

 

$382,535

Consolidated gross margin
37.0
%
 
38.1
%
 
37.7
%
 
37.8
%


Assets by Reportable Segment
Inventories are the only assets reviewed by the Company's CODM when evaluating segment performance and allocating resources to the segments. The following table sets forth the Company's inventories by reportable segment at March 30, 2014 and June 30, 2013.
Unallocated inventories in the table below consist primarily of manufacturing employees' stock-based compensation, expenses for profit sharing and quarterly or annual incentive plans and matching contributions under the Company's 401(k) plan. These costs are not allocated to the reportable segments’ inventories because the Company’s CODM does not review them regularly when evaluating segment performance and allocating resources.
The Company does not allocate assets other than inventories to the reportable segments because the Company's CODM does not review them when assessing segment performance and allocating resources. The CODM reviews all of the Company's assets other than inventories on a consolidated basis.
Inventories for each of the Company's segments are as follows (in thousands):
 
March 30,
2014
 
June 30,
2013
LED Products
$
107,392

 
$
99,835

Lighting Products
133,067

 
87,546

Power and RF Products
6,997

 
6,593

Total segment inventories
247,456

 
193,974

Unallocated inventories
3,778

 
3,027

Consolidated inventories
$
251,234

 
$
197,001