Segment Reporting

9 Months Ended

Mar. 31, 2023

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 nine months ended March 31, 2023 are wholly allocated to the Lasers segment. For the three and nine months ended March 31, 2022, 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 March 31, 2023
	Networking		Materials		Lasers		Unallocated & Other		Total
Revenues	$	551,099	$	323,769	$	365,326	$	—	$	1,240,194
Inter-segment revenues	17,759		96,604		317		(114,680)		—
Operating income (loss)	49,476		67,826		(49,914)		—		67,388
Interest expense	—		—		—		—		(75,183)
Other income (expense), net	—		—		—		—		3,048
Income tax benefit	—		—		—		—		7,293
Net earnings	—		—		—		—		2,546
Depreciation and amortization	41,369		29,242		90,330		—		160,941
Expenditures for property, plant & equipment	6,441		78,666		12,038		—		97,145
Segment assets	3,435,816		2,275,614		8,406,202		—		14,117,632
Goodwill	1,012,006		273,341		3,219,790		—		4,505,137

	Three Months Ended March 31, 2022
	Networking		Materials		Unallocated & Other		Total
Revenues	$	559,560	$	268,164	$	—	$	827,724
Inter-segment revenues	23,945		59,345		(83,290)		—
Operating income (loss)	54,618		61,754		(9,604)		106,768
Interest expense	—		—		—		(43,499)
Other income (expense), net	—		—		—		(241)
Income taxes	—		—		—		(14,027)
Net earnings	—		—		—		49,002
Depreciation and amortization	44,126		28,691		—		72,817
Expenditures for property, plant & equipment	18,363		75,939		—		94,302

	Nine Months Ended March 31, 2023
	Networking		Materials		Lasers		Unallocated & Other		Total
Revenues	$	1,756,327	$	1,061,809	$	1,136,913	$	—	$	3,955,049
Inter-segment revenues	54,129		277,502		1,400		(333,031)		—
Operating income (loss)	230,497		224,633		(337,020)		—		118,110
Interest expense	—		—		—		—		(207,976)
Other income (expense), net	—		—		—		—		(32,253)
Income tax benefit	—		—		—		—		40,895
Net earnings	—		—		—		—		(81,224)
Depreciation and amortization	124,384		83,804		269,948		—		478,136
Expenditures for property, plant & equipment	80,654		215,038		47,307		—		342,999

    

	Nine Months Ended March 31, 2022
	Networking		Materials		Unallocated & Other		Total
Revenues	$	1,607,114	$	822,540	$	—	$	2,429,654
Inter-segment revenues	80,666		199,202		(279,868)		—
Operating income (loss)	164,481		165,071		(29,511)		300,041
Interest expense	—		—		—		(72,752)
Other income (expense), net	—		—		—		5,535
Income taxes	—		—		—		(41,701)
Net earnings	—		—		—		191,123
Depreciation and amortization	128,504		85,031		—		213,535
Expenditures for property, plant & equipment	53,779		142,211		—		195,991