Operating Segment, Geographic Information and Significant Customers

12 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Operating Segment, Geographic Information and Significant Customers

Operating Segment, Geographic Information and Significant Customers

Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. Prior to the fourth quarter of fiscal 2016, the Company's operating segments were: Mercury Commercial Electronics and Mercury Defense Systems.

During fiscal 2016, the Company completed a series of important internal organizational structure changes to align and scale the Company into one business. In addition, over the past several years, the Company has completed several acquisitions to support its strategy of creating a better alternative for affordable, secure processing subsystems designed and made in the U.S.A. These acquisitions culminated with the $300,000 acquisition of the Carve-Out Business on May 2, 2016. These strategic changes finalized the transformation of the CODM’s management, evaluation and review of the business, including how he allocates resources and assesses performance. Therefore, during the fourth quarter ended June 30, 2016, the Company’s previous MCE and MDS operating segments no longer continued to exist and the Company is now comprised of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with FASB ASC 280.

The geographic distribution of the Company's revenues is summarized as follows:

	US		Europe		Asia Pacific		Eliminations			Total
YEAR ENDED JUNE 30, 2016
Net revenues to unaffiliated customers	$	259,781	$	5,464	$	4,909	$	—		$	270,154
Inter-geographic revenues	7,911		447		—		(8,358		)	—
Net revenues	$	267,692	$	5,911	$	4,909	$	(8,358	)	$	270,154
Identifiable long-lived assets	$	28,187	$	127	$	23	$	—		$	28,337
YEAR ENDED JUNE 30, 2015
Net revenues to unaffiliated customers	$	229,849	$	2,076	$	2,922	$	—		$	234,847
Inter-geographic revenues	2,806		475		—		(3,281		)	—
Net revenues	$	232,655	$	2,551	$	2,922	$	(3,281	)	$	234,847
Identifiable long-lived assets	$	13,127	$	68	$	31	$	—		$	13,226
YEAR ENDED JUNE 30, 2014
Net revenues to unaffiliated customers	$	202,845	$	2,806	$	3,078	$	—		$	208,729
Inter-geographic revenues	3,479		1,550		140		(5,169		)	—
Net revenues	$	206,324	$	4,356	$	3,218	$	(5,169	)	$	208,729
Identifiable long-lived assets	$	14,090	$	48	$	6	$	—		$	14,144

Foreign revenue is based on the country in which the Company's legal subsidiary is domiciled. Identifiable long-lived assets exclude goodwill and intangible assets.

Customers comprising 10% or more of the Company's revenues for the periods are as follows:

	Year Ended June 30,
	2016		2015		2014
Lockheed Martin Corporation	23	%	20	%	18	%
Raytheon Company	20		37		13
Northrop Grumman Corporation	*		*		12
	43	%	57	%	43	%

*    Indicates that the amount is less than 10% of the Company's revenues for the respective period.

While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. Programs comprising 10% or more of the Company's revenues for the periods are as follows:

	Year Ended June 30,
	2016		2015		2014
SEWIP	12	%	*		*
Aegis	10	%	12	%	15	%
Patriot	*		18	%	*
F-35	*		16	%	*
	22	%	46	%	15	%

*    Indicates that the amount is less than 10% of the Company's revenues for the respective period.