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Reportable Segments
 6 Months Ended
Dec. 28, 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 and bulbs. 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 28, 2014 and December 29, 2013. The Company's CODM is the Chief Executive Officer. The Company used 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 transactions when evaluating segment performance and allocating resources to each segment, and inter-segment transactions are not included in the segment revenue 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 consisted primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation and matching contributions under the Company’s 401(k) plan. These costs were 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.
Revenue, 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 28,
2014
 
December 29,
2013
 
December 28,
2014
 
December 29,
2013
Revenue:
 
 
 
 
 
 
 
LED Products revenue

$151,877

 

$215,022

 

$325,467

 

$433,045

Lighting Products revenue
230,168

 
173,656

 
453,254

 
321,574

Power and RF Products revenue
31,112

 
26,408

 
62,108

 
51,473

Total revenue

$413,157

 

$415,086

 

$840,829

 

$806,092

 
 
 
 
 
 
 
 
Gross Profit and Gross Margin:
 
 
 
 
 
 
 
LED Products gross profit

$59,424

 

$97,644

 

$127,048

 

$199,297

LED Products gross margin
39.1
%
 
45.4
%
 
39.0
%
 
46.0
%
Lighting Products gross profit
64,701

 
48,426

 
120,293

 
88,244

Lighting Products gross margin
28.1
%
 
27.9
%
 
26.5
%
 
27.4
%
Power and RF Products gross profit
17,260

 
15,321

 
35,117

 
28,777

Power and RF Products gross margin
55.5
%
 
58.0
%
 
56.5
%
 
55.9
%
Total segment gross profit
141,385

 
161,391

 
282,458

 
316,318

Unallocated costs
(4,606
)
 
(5,613
)
 
(9,859
)
 
(9,783
)
Consolidated gross profit

$136,779

 

$155,778

 

$272,599

 

$306,535

Consolidated gross margin
33.1
%
 
37.5
%
 
32.4
%
 
38.0
%


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 CODM reviews all of the Company's assets other than inventories on a consolidated basis.
Unallocated inventories in the table below were not allocated to the reportable segments because the Company’s CODM does not review them when evaluating performance and allocating resources to each segment. Unallocated inventories consisted primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation and matching contributions under the Company’s 401(k) plan.
Inventories for each of the Company's segments are as follows (in thousands):
 
December 28,
2014
 
June 29,
2014
LED Products
$
135,456

 
$
123,249

Lighting Products
181,848

 
148,757

Power and RF Products
10,190

 
8,019

Total segment inventories
327,494

 
280,025

Unallocated inventories
5,054

 
4,755

Consolidated inventories
$
332,548

 
$
284,780