Segment Reporting

6 Months Ended

Dec. 31, 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 and six months ended December 31, 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 December 31, 2021
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	524,969	$	281,850	$	—	$	806,819
Inter-segment revenues	9,377		92,269		(101,646)		—
Operating income	49,713		57,249		(8,740)		98,222
Interest expense	—		—		—		(17,062)
Other income, net	—		—		—		(1,806)
Income taxes	—		—		—		(11,697)
Net earnings	—		—		—		67,657
Depreciation and amortization	42,850		28,176		—		71,026
Expenditures for property, plant & equipment	11,885		42,237		—		54,122
Segment assets	4,981,065		2,668,218		—		7,649,283
Goodwill	1,052,038		241,129		—		1,293,167

	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 expense, 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

	Six Months Ended December 31, 2021
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	1,060,992	$	540,938	$	—	$	1,601,930
Inter-segment revenues	25,940		170,638		(196,578)		—
Operating income (loss)	106,259		106,920		(19,907)		193,272
Interest expense	—		—		—		(29,253)
Other income (expense), net	—		—		—		5,776
Income taxes	—		—		—		(27,674)
Net earnings	—		—		—		142,121
Depreciation and amortization	84,986		55,732		—		140,718
Expenditures for property, plant & equipment	36,862		64,827		—		101,689

	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 income, 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