Segment Reporting

6 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Note  9. 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 performance.

The Company reports its financial results in the following three segments: (i) II-VI Laser Solutions, (ii) II-VI Photonics, and (iii) II-VI Performance Products, 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 of the segments are the same as those of the Company. The Company’s corporate expenses are allocated to the segments. The Company evaluates segment performance based upon reported segment operating income, which is defined as earnings before income taxes, interest and other income or expense. Inter-segment sales and transfers are eliminated.

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

	Three Months Ended December 31, 2016
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	81,483	$	100,906	$	49,433	$	-		$	231,822
Inter-segment revenues		8,760		3,161		2,645		(14,566	)		-
Operating income		7,593		15,901		3,642		-			27,136
Interest expense		-		-		-		-			(1,365	)
Other income (expense), net		-		-		-		-			6,045
Income taxes		-		-		-		-			(7,913	)
Net earnings		-		-		-		-			23,903
Depreciation and amortization		5,662		4,976		4,278		-			14,916
Segment assets		528,505		482,866		281,630		-			1,293,001
Expenditures for property, plant & equipment		15,737		5,900		6,191		-			27,828
Investment		-		-		11,844		-			11,844

	Three Months Ended December 31, 2015
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	70,191	$	74,264	$	46,979	$	-		$	191,434
Inter-segment revenues		4,850		2,766		1,543		(9,159	)		-
Operating income		11,251		7,455		3,076		-			21,781
Interest expense		-		-		-		-			(597	)
Other income (expense), net		-		-		-		-			994
Income taxes		-		-		-		-			(3,187	)
Net earnings		-		-		-		-			18,991
Depreciation and amortization		3,691		4,980		5,148		-			13,819
Expenditures for property, plant & equipment		3,475		4,471		1,786		-			9,732

	Six Months Ended December 31, 2016
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	160,773	$	196,725	$	95,844	$	-		$	453,342
Inter-segment revenues		14,700		6,599		4,378		(25,677	)		-
Operating income		14,291		29,791		6,745		-			50,827
Interest expense		-		-		-		-			(2,611	)
Other income (expense), net		-		-		-		-			7,447
Income taxes		-		-		-		-			(15,466	)
Net earnings		-		-		-		-			40,197
Depreciation and amortization		11,312		9,824		8,662		-			29,798
Expenditures for property, plant & equipment		35,862		12,497		9,463		-			57,822

	Six Months Ended December 31, 2015
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	141,774	$	146,159	$	92,708	$	-		$	380,641
Inter-segment revenues		9,380		5,797		3,938		(19,115	)		-
Operating income		23,426		13,739		6,345		-			43,509
Interest expense		-		-		-		-			(1,246	)
Other income (expense), net		-		-		-		-			2,051
Income taxes		-		-		-		-			(8,109	)
Net earnings		-		-		-		-			36,205
Depreciation and amortization		7,395		10,073		9,656		-			27,124
Expenditures for property, plant & equipment		9,355		6,623		3,178		-			19,156