Segment Reporting

9 Months Ended

Mar. 31, 2022

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 nine months ended March 31, 2022 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 March 31, 2022
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	567,790	$	259,934	$	—	$	827,724
Inter-segment revenues	10,039		73,251		(83,290)		—
Operating income	54,604		61,768		(9,604)		106,768
Interest expense	—		—		—		(43,499)
Other expense, net	—		—		—		(241)
Income taxes	—		—		—		(14,027)
Net earnings	—		—		—		49,002
Depreciation and amortization	44,402		28,415		—		72,817
Expenditures for property, plant & equipment	18,415		75,887		—		94,302
Segment assets	4,991,163		2,776,033		—		7,767,196
Goodwill	1,052,171		240,478		—		1,292,649

	Three Months Ended March 31, 2021
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	507,981	$	275,251	$	—	$	783,232
Inter-segment revenues	12,209		61,272		(73,481)		—
Operating income	48,286		52,522		(15,728)		85,080
Interest expense	—		—		—		(13,034)
Other income, net	—		—		—		21,432
Income taxes	—		—		—		(12,387)
Net earnings	—		—		—		81,092
Depreciation and amortization	41,060		26,925		—		67,985
Expenditures for property, plant & equipment	16,364		9,639		—		26,002

	Nine Months Ended March 31, 2022
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	1,628,782	$	800,872	$	—	$	2,429,654
Inter-segment revenues	35,979		243,889		(279,868)		—
Operating income	160,863		168,688		(29,511)		300,041
Interest expense	—		—		—		(72,752)
Other income, net	—		—		—		5,535
Income taxes	—		—		—		(41,701)
Net earnings	—		—		—		191,123
Depreciation and amortization	129,388		84,147		—		213,535
Expenditures for property, plant & equipment	55,277		140,714		—		195,991

	Nine Months Ended March 31, 2021
	Photonic Solutions		Compound Semiconductors		Unallocated & Other		Total
Revenues	$	1,488,587	$	809,298	$	—	$	2,297,885
Inter-segment revenues	27,866		193,171		(221,037)		—
Operating income	147,159		173,494		(15,728)		304,925
Interest expense	—		—		—		(45,833)
Other income, net	—		—		—		246
Income taxes	—		—		—		(44,081)
Net earnings	—		—		—		215,258
Depreciation and amortization	119,510		80,360		—		199,870
Expenditures for property, plant & equipment	62,450		42,881		—		105,331