Acquisitions (Tables)

12 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Fair Value of Consideration Paid for Acquisition

The total fair value of consideration paid in connection with the acquisition of Finisar consisted of the following (in $000):

	Shares	Per Share		Total Consideration
Cash paid for outstanding shares of Finisar common stock				$	1,879,086
II-VI common shares issued to Finisar stockholders	26,712,822	$	36.98	987,707
Replacement equity awards attributable to pre-combination service				41,710
				$	2,908,503

Allocation of Purchase Price of Assets Acquired and Liabilities Assumed

Our preliminary allocation of the purchase price of Finisar, based on the estimated fair value of the assets acquired and liabilities assumed as of the Closing Date, is as follows (in $000):

	Preliminary Purchase Price Allocation
	Previously				Measurement
	Reported		Reclassification		Period		As Adjusted
	September 30, 2019		Adjustments		Adjustments (a)		(preliminary)
Cash and cash equivalents	$	842,764	$	(287)	$	—	$	842,477
Accounts receivable	260,864		—		(1,523)		259,341
Inventories	437,867		—		1,841		439,708
Property, plant & equipment (b)	748,858		—		(91,145)		657,713
Intangible assets (c)	827,689		—		(162,489)		665,200
Other assets (d) (h)	82,624		287		(6,443)		76,468
Deferred tax assets (e)	—		—		16,267		16,267
Accounts payable	(123,707)		—		—		(123,707)
Other accrued liabilities (d) (f) (h)	(148,425)		(43,964)		(9,727)		(202,116)
Deferred tax liabilities (e)	(197,809)		43,964		86,805		(67,040)
Debt	(575,000)		—		—		(575,000)
Goodwill	759,239		—		159,953		919,192
Total Purchase Price (g)	$	2,914,964	$	—	$	(6,461)	$	2,908,503

(a) The Company recorded measurement period adjustments to its preliminary acquisition date fair values due to the refinement of its valuation models, assumptions and inputs. The following measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date.

(b) The Company estimated the fair value of the property, plant, and equipment acquired as part of the Finisar acquisition to be $657.7 million. Upon finalization of the valuation, the fair value of the property, plant, and equipment was decreased by $91.1 million as of June 30, 2020 with a corresponding increase to goodwill.

(c) The Company estimated the fair value of the intangible assets acquired as part of the Finisar acquisition to be $665.2 million. Upon finalization of the valuation, the fair value of the intangible assets was decreased by $162.5 million as of June 30, 2020 with a corresponding increase to goodwill.

(d) The Company reassessed the lease term and discount rates on the right of use assets acquired as part of the Finisar acquisition. As a result, the preliminary fair value of the right of use assets acquired were decreased by $16.0 million during the measurement period with a corresponding decrease in the lease liability.

(e) The Company has adjusted its deferred tax asset and liability positions as of June 30, 2020, to $16.3 million and $67.0 million respectively, as a result of measurement period adjustments.

(f) In addition to the $16.0 million reduction of lease liabilities described in (d) above, the Company recorded approximately $11.5 million of uncertain tax positions, approximately $13.4 million of warranty reserve liabilities, and approximately $5.5 million of increases in other liabilities, as measurement period adjustments.

(g) Total purchase price decreased $6.5 million for the deferred tax impact of the purchase price component associated with replacement equity awards attributable to pre-combination service of Finisar employees.

(h) Other assets and other accrued liabilities increased $6.8 million for a litigation matter and related insurance recovery.

Unaudited Supplemental Pro Forma Financial Information

The unaudited supplemental pro forma financial information for the period presented is as follows (in $000):

	Year Ended June 30, 2020		Year Ended June 30, 2019
Revenue	$	2,638,278	$	2,625,714
Net Earnings (Loss)	$	12,902	$	(138,452)