Segment Reporting

3 Months Ended

Sep. 30, 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.

On July 1, 2022, the Company completed its acquisition of Legacy Coherent. See Note 3. Coherent Acquisition for further information. The operating results of Legacy Coherent are reflected in the Lasers segment.

Effective July 1, 2022 the Company reports its financial results in the following three newly designated segments: (i) Networking, (ii) Materials, and (iii) Lasers. Previously, financial results had been reported in the following two segments: (i) Photonic Solutions, and (ii) Compound Semiconductors. The Networking segment represents the former Photonic Solutions segment and the Materials segment represents the former Compound Semiconductors segment

The Company’s chief operating decision maker receives and reviews financial information based on these three 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 Coherent acquisition for the three months ended September 30, 2022 are wholly allocated to the Lasers segment. For the three months ended Sept 30, 2021, the expenses associated with the pending acquisition of Coherent were not allocated to an operating segment, and were presented in Unallocated and Other. In addition, prior year numbers were recast to reflect the transfer of two entities between the Networking and Materials segments.

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

	Three Months Ended September 30, 2022
	Networking		Materials		Lasers		Unallocated & Other		Total
Revenues	$	596,548	$	355,644	$	392,378	$	—	$	1,344,570
Inter-segment revenues	18,740		95,054		166		(113,960)		—
Operating income (loss)	90,982		75,335		(123,841)		—		42,476
Interest expense	—		—		—		—		(61,889)
Other income (expense), net	—		—		—		—		(31,605)
Income taxes	—		—		—		—		12,320
Net loss	—		—		—		—		(38,698)
Depreciation and amortization	42,774		26,527		77,985		—		147,286
Expenditures for property, plant & equipment	43,830		74,898		20,262		—		138,990
Segment assets	3,491,637		2,251,544		8,087,378		—		13,830,559
Goodwill	1,009,078		270,197		4,005,316		—		5,284,591

	Three Months Ended September 30, 2021
	Networking		Materials		Unallocated & Other		Total
Revenues	$	531,013	$	264,098	$	—	$	795,111
Inter-segment revenues	32,169		62,763		(94,932)		—
Operating income (loss)	59,439		46,778		(11,167)		95,050
Interest expense	—		—		—		(12,191)
Other income (expense), net	—		—		—		7,582
Income taxes	—		—		—		(15,977)
Net earnings	—		—		—		74,464
Depreciation and amortization	41,833		27,859		—		69,692
Expenditures for property, plant & equipment	24,796		22,770		—		47,565