Segment Reporting

3 Months Ended

Sep. 30, 2021

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.

The accounting policies are consistent across each segment. To the extent possible, the Company’s corporate expenses and assets are allocated to the segments. The expenses associated with the pending acquisition of Coherent for the three months ended September 30, 2021 have not been allocated to an Operating Segment, and are presented in Unallocated and Other.

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

	Three Months Ended September 30, 2021
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	536,023	$	259,088	$	—	$	795,111
Inter-segment revenues	16,563		78,369		(94,932)		—
Operating income	56,545		49,671		(11,167)		95,050
Interest expense	—		—		—		(12,191)
Other income, net	—		—		—		7,582
Income taxes	—		—		—		(15,977)
Net earnings	—		—		—		74,464
Depreciation and amortization	42,137		27,555		—		69,692
Expenditures for property, plant & equipment	24,977		22,589		—		47,565
Segment assets	4,242,706		2,273,156		—		6,515,862
Goodwill	1,052,301		242,447		—		1,294,748

	Three Months Ended September 30, 2020
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	497,727	$	230,357	$	—	$	728,084
Inter-segment revenues	7,216		67,087		(74,303)		—
Operating income	50,435		50,695		—		101,130
Interest expense	—		—		—		(17,214)
Other expense, net	—		—		—		(24,339)
Income taxes	—		—		—		(13,311)
Net earnings	—		—		—		46,266
Depreciation and amortization	38,687		25,998		—		64,685
Expenditures for property, plant & equipment	21,234		12,558		—		33,792