XML 32 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
Reportable Segments
 6 Months Ended
Dec. 27, 2015
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments

The Company's operating and reportable segments are:
•
Lighting Products
•
LED Products
•
Power and RF Products
Reportable Segments Description
The Company's Lighting Products segment primarily consists of LED lighting systems and bulbs. The Company's LED Products segment includes LED chips, LED components and SiC materials. 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 27, 2015 and December 28, 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 (Loss) must be included to reconcile the consolidated gross profit presented in the table below to the Company's consolidated income (loss) 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, expenses for profit sharing and quarterly or annual incentive plans 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 27,
2015
 
December 28,
2014
 
December 27,
2015
 
December 28,
2014
Revenue:
 
 
 
 
 
 
 
Lighting Products revenue

$254,970

 

$230,168

 

$503,001

 

$453,254

LED Products revenue
153,362

 
151,877

 
301,570

 
325,467

Power and RF Products revenue
27,474

 
31,112

 
56,724

 
62,108

Total revenue

$435,806

 

$413,157

 

$861,295

 

$840,829

 
 
 
 
 
 
 
 
Gross Profit and Gross Margin:
 
 
 
 
 
 
 
Lighting Products gross profit

$72,642

 

$64,701

 

$141,723

 

$120,293

Lighting Products gross margin
28.5
%
 
28.1
%
 
28.2
%
 
26.5
%
LED Products gross profit
53,242

 
59,424

 
105,901

 
127,048

LED Products gross margin
34.7
%
 
39.1
%
 
35.1
%
 
39.0
%
Power and RF Products gross profit
14,346

 
17,260

 
28,669

 
35,117

Power and RF Products gross margin
52.2
%
 
55.5
%
 
50.5
%
 
56.5
%
Total segment gross profit
140,230

 
141,385

 
276,293

 
282,458

Unallocated costs
(5,079
)
 
(4,606
)
 
(9,394
)
 
(9,859
)
Consolidated gross profit

$135,151

 

$136,779

 

$266,899

 

$272,599

Consolidated gross margin
31.0
%
 
33.1
%
 
31.0
%
 
32.4
%


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):
 
December 27,
2015
 
June 28,
2015
Lighting Products

$148,872

 

$150,755

LED Products
110,349

 
114,203

Power and RF Products
16,601

 
11,536

Total segment inventories
275,822

 
276,494

Unallocated inventories
4,988

 
4,082

Consolidated inventories

$280,810

 

$280,576