Operating Segment, Geographic Information and Significant Customers

12 Months Ended

Jul. 03, 2020

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. The Company is comprised of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with ASC 280, Segment Reporting.

The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows:


	U.S.		Europe		Asia Pacific		Eliminations		Total
YEAR ENDED JULY 3, 2020
Net revenues to unaffiliated customers	$	744,270	$	50,092	$	2,248	$	—	$	796,610
Inter-geographic revenues	4,938		3,067		—		(8,005)		—
Net revenues	$	749,208	$	53,159	$	2,248	$	(8,005)	$	796,610
Identifiable long-lived assets (1)	$	82,588	$	5,144	$	5	$	—	$	87,737
YEAR ENDED JUNE 30, 2019
Net revenues to unaffiliated customers	$	599,422	$	49,332	$	5,990	$	—	$	654,744
Inter-geographic revenues	10,570		1,343		—		(11,913)		—
Net revenues	$	609,992	$	50,675	$	5,990	$	(11,913)	$	654,744
Identifiable long-lived assets (1)	$	54,952	$	5,037	$	12	$	—	$	60,001
YEAR ENDED JUNE 30, 2018
Net revenues to unaffiliated customers	$	450,218	$	35,000	$	7,966	$	—	$	493,184
Inter-geographic revenues	10,650		925		—		(11,575)		—
Net revenues	$	460,868	$	35,925	$	7,966	$	(11,575)	$	493,184
Identifiable long-lived assets (1)	$	47,997	$	2,974	$	9	$	—	$	50,980

(1) Identifiable long-lived assets exclude ROU assets, goodwill, and intangible assets.

In recent years, the Company completed a series of acquisitions that changed its technological capabilities, applications and end markets. As these acquisitions and changes occurred, the Company increased the proportion of its revenue derived from the sale of components in different technological areas, and also increased the amount of revenue associated with combining technologies into more complex and diverse products including modules, sub-assemblies and integrated subsystems. The following tables present revenue consistent with the Company's strategy of expanding its technological capabilities and program content. As additional information related to the Company’s products by end user, application and/or product grouping is attained, the categorization of these products can vary over time. When this occurs, the Company reclassifies revenue by end user, application and/or product grouping for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each revenue category.

The following table presents the Company's net revenue by end market for the periods presented:


	Fiscal Years Ended
	July 3, 2020		June 30, 2019		June 30, 2018
Domestic (1)	$	704,722	$	580,935	$	410,050
International/Foreign Military Sales (2)	91,888		73,809		83,134
Total Net Revenue	$	796,610	$	654,744	$	493,184

(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined.

(2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S.

The following table presents the Company's net revenue by end application for the periods presented:


	Fiscal Years Ended
	July 3, 2020		June 30, 2019		June 30, 2018
Radar (1)	$	233,967	$	164,046	$	159,737
Electronic Warfare (2)	161,782		128,841		114,801
Other Sensor and Effector (3)	105,175		90,245		48,088
Total Sensor and Effector	500,924		383,132		322,626
C4I (4)	207,000		183,172		87,414
Other (5)	88,686		88,440		83,144
Total Net Revenues	$	796,610	$	654,744	$	493,184

(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects.

(2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum.

(3) Other Sensor and Effector products include all Sensor and Effector end markets other than Radar and Electronic Warfare.

(4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications.

(5) Other products include all component and other sales where the end use is not specified.

The following table presents the Company's net revenue by product grouping for the periods presented:


	Fiscal Years Ended
	July 3, 2020		June 30, 2019		June 30, 2018
Components (1)	$	225,292	$	184,870	$	142,982
Modules and Sub-assemblies (2)	203,432		180,873		194,377
Integrated Subsystems (3)	367,886		289,001		155,825
Total Net Revenues	$	796,610	$	654,744	$	493,184

(1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices.

(2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers.

(3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company.

The following table presents the Company's net revenue by platform for the periods presented:


	Fiscal Years Ended
	July 3, 2020		June 30, 2019		June 30, 2018
Airborne (1)	$	402,670	$	306,412	$	242,611
Land (2)	102,956		83,034		41,841
Naval (3)	157,225		136,966		110,620
Other (4)	133,759		128,332		98,112
Total Net Revenues	$	796,610	$	654,744	$	493,184

(1) Airborne platform includes products that relate to personnel, equipment, or pieces of equipment designed for airborne applications

(2) Land platform includes products that relate to fixed or mobile equipment, or pieces of equipment for personnel, weapon systems, vehicles and support elements operating on land

(3) Naval platform includes products that relate to personnel, equipment, or pieces of equipment designed for naval operations

(4) All platforms other than Airborne, Land or Naval.

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


	Fiscal Years Ended
	July 3, 2020		June 30, 2019		June 30, 2018
Raytheon Technologies	16	%	20	%	19	%
Lockheed Martin Corporation	16	%	17	%	19	%
	32	%	37	%	38	%

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. There were no programs comprising 10% or more of the Company's revenues for the years ended July 3, 2020, June 30, 2019 and 2018.