Segment Reporting

6 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company reports its business segments using the “management approach” model for segment reporting. This means that the Company determines its reportable business segments based on the way the chief operating decision maker organizes business segments within the Company for making operating decisions and assessing financial performance.

The Company reports its financial results in the following two segments: (i) Compound Semiconductors, and (ii) Photonic Solutions, and the Company’s chief operating decision maker receives and reviews financial information based on these segments.  The Company evaluates business segment performance based upon segment operating income, which is defined as earnings before income taxes, interest and other income or expense. The segments are managed separately due to the market, production requirements and facilities unique to each segment.

Both the acquisitions of Ascatron and Innovion are presented within the Compound Semiconductors segment since the dates of their acquisitions.

The accounting policies are consistent across each segment. To the extent possible, the Company’s corporate expenses and assets are allocated to the segments. Unallocated and Other includes eliminating inter-segment sales and transfers, the results of Finisar since the acquisition date through September 30, 2019, and transaction costs related to the Finisar transaction.

The following tables summarize selected financial information of the Company’s operations by segment ($000):

	Three Months Ended December 31, 2020
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	482,879	$	303,690	$	—	$	786,569
Inter-segment revenues	8,441		64,812		(73,253)		—
Operating income	48,439		70,277		—		118,716
Interest expense	—		—		—		(15,585)
Other income, net	—		—		—		3,153
Income taxes	—		—		—		(18,383)
Net earnings	—		—		—		87,900
Depreciation and amortization	39,764		27,437		—		67,200
Expenditures for property, plant & equipment	24,853		20,684		—		45,537
Segment assets	3,700,184		1,946,379		—		5,646,563
Goodwill	1,051,832		240,552		—		1,292,384

	Three Months Ended December 31, 2019
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	460,393	$	205,938	$	—	$	666,331
Inter-segment revenues	22,190		66,123		(88,313)		—
Operating income (loss)	(60,937)		(8,835)		(8,808)		(78,580)
Interest expense	—		—		—		(28,390)
Other expense, net	—		—		—		(487)
Income taxes	—		—		—		9,242
Net loss	—		—		—		(98,213)
Depreciation and amortization	55,174		26,978		—		82,152
Expenditures for property, plant & equipment	21,313		33,339		—		54,652

	Six Months Ended December 31, 2020
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	980,606	$	534,047	$	—	$	1,514,653
Inter-segment revenues	15,657		131,899		(147,556)		—
Operating income (loss)	98,873		120,972		—		219,845
Interest expense	—		—		—		(32,799)
Other expense, net	—		—		—		(21,186)
Income taxes	—		—		—		(31,694)
Net earnings	—		—		—		134,166
Depreciation and amortization	78,451		53,435		—		131,886
Expenditures for property, plant & equipment	46,087		33,242		—		79,329

	Six Months Ended December 31, 2019
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	601,749	$	382,940	$	22,051	$	1,006,740
Inter-segment revenues	24,840		80,056		(104,896)		—
Operating income (loss)	(47,913)		17,686		(66,827)		(97,054)
Interest expense	—		—		—		(35,358)
Other expense, net	—		—		—		(5,566)
Income taxes	—		—		—		13,766
Net loss	—		—		—		(124,211)
Depreciation and amortization	61,990		43,367		3,743		109,100
Expenditures for property, plant & equipment	30,702		46,822		2,764		80,288