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Reportable Segments
 9 Months Ended
Mar. 29, 2015
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 nine months ended March 29, 2015 and March 30, 2014. 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
 
Nine Months Ended
 
March 29,
2015
 
March 30,
2014
 
March 29,
2015
 
March 30,
2014
Revenue:
 
 
 
 
 
 
 
LED Products revenue

$154,384

 

$201,119

 

$479,851

 

$634,164

Lighting Products revenue
224,109

 
176,691

 
677,363

 
498,265

Power and RF Products revenue
31,026

 
27,449

 
93,134

 
78,922

Total revenue

$409,519

 

$405,259

 

$1,250,348

 

$1,211,351

 
 
 
 
 
 
 
 
Gross Profit and Gross Margin:
 
 
 
 
 
 
 
LED Products gross profit

$55,358

 

$91,634

 

$182,406

 

$290,931

LED Products gross margin
35.9
%
 
45.6
%
 
38.0
%
 
45.9
%
Lighting Products gross profit
58,315

 
48,487

 
178,608

 
136,731

Lighting Products gross margin
26.0
%
 
27.4
%
 
26.4
%
 
27.4
%
Power and RF Products gross profit
16,484

 
15,675

 
51,601

 
44,452

Power and RF Products gross margin
53.1
%
 
57.1
%
 
55.4
%
 
56.3
%
Total segment gross profit
130,157

 
155,796

 
412,615

 
472,114

Unallocated costs
(4,749
)
 
(5,802
)
 
(14,608
)
 
(15,585
)
Consolidated gross profit

$125,408

 

$149,994

 

$398,007

 

$456,529

Consolidated gross margin
30.6
%
 
37.0
%
 
31.8
%
 
37.7
%


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 were as follows (in thousands):
 
March 29,
2015
 
June 29,
2014
LED Products
$
128,061

 
$
123,249

Lighting Products
155,294

 
148,757

Power and RF Products
11,306

 
8,019

Total segment inventories
294,661

 
280,025

Unallocated inventories
4,699

 
4,755

Consolidated inventories
$
299,360

 
$
284,780