Segment Reporting

6 Months Ended

Dec. 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.

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 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 Legacy Coherent acquisition for the three and six months ended December 31, 2022 are wholly allocated to the Lasers segment. For the three and six months ended December 31, 2021, the expenses associated with the acquisition of Legacy 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 December 31, 2022
	Networking		Materials		Lasers		Unallocated & Other		Total
Revenues	$	608,680	$	382,396	$	379,209	$	—	$	1,370,285
Inter-segment revenues	17,630		85,844		917		(104,391)		—
Operating income (loss)	90,039		81,472		(163,265)		—		8,246
Interest expense	—		—		—		—		(70,904)
Other income (expense), net	—		—		—		—		(3,696)
Income taxes	—		—		—		—		21,282
Net loss	—		—		—		—		(45,072)
Depreciation and amortization	40,241		28,035		101,633		—		169,909
Expenditures for property, plant & equipment	30,383		61,474		15,007		—		106,864
Segment assets	3,518,319		2,248,600		8,341,975		—		14,108,894
Goodwill	1,011,644		273,268		3,141,929		—		4,426,841

	Three Months Ended December 31, 2021
	Networking		Materials		Unallocated & Other		Total
Revenues	$	516,541	$	290,278	$	—	$	806,819
Inter-segment revenues	24,552		77,094		(101,646)		—
Operating income (loss)	50,424		56,538		(8,740)		98,222
Interest expense	—		—		—		(17,062)
Other income (expense), net	—		—		—		(1,806)
Income taxes	—		—		—		(11,697)
Net earnings	—		—		—		67,657
Depreciation and amortization	42,545		28,481		—		71,026
Expenditures for property, plant & equipment	10,620		43,502		—		54,122

	Six Months Ended December 31, 2022
	Networking		Materials		Lasers		Unallocated & Other		Total
Revenues	$	1,205,228	$	738,040	$	771,587	$	—	$	2,714,855
Inter-segment revenues	36,370		180,898		1,083		(218,351)		—
Operating income (loss)	181,021		156,807		(287,106)		—		50,722
Interest expense	—		—		—		—		(132,793)
Other income (expense), net	—		—		—		—		(35,301)
Income taxes	—		—		—		—		33,602
Net earnings	—		—		—		—		(83,770)
Depreciation and amortization	83,015		54,562		179,618		—		317,195
Expenditures for property, plant & equipment	74,213		136,372		35,269		—		245,854

    

	Six Months Ended December 31, 2021
	Networking		Materials		Unallocated & Other		Total
Revenues	$	1,047,554	$	554,376	$	—	$	1,601,930
Inter-segment revenues	56,721		139,857		(196,578)		—
Operating income (loss)	109,863		103,316		(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	84,379		56,340		—		140,719
Expenditures for property, plant & equipment	35,416		66,273		—		101,689