Segment Reporting

9 Months Ended

Mar. 31, 2017

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 March 31, 2017
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	83,648	$	109,099	$	52,240	$	-		$	244,987
Inter-segment revenues		9,661		3,450		2,713		(15,824	)		-
Operating income		8,337		15,898		4,804		-			29,039
Interest expense		-		-		-		-			(1,936	)
Other income (expense), net		-		-		-		-			2,164
Income taxes		-		-		-		-			(6,837	)
Net earnings		-		-		-		-			22,430
Depreciation and amortization		5,713		5,029		4,182		-			14,924
Segment assets		556,238		496,068		295,342		-			1,347,648
Expenditures for property, plant & equipment		23,299		8,727		9,287		-			41,313
Investment		-		-		12,007		-			12,007

	Three Months Ended March 31, 2016
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	73,778	$	80,603	$	50,724	$	-		$	205,105
Inter-segment revenues		5,962		3,363		1,800		(11,125	)		-
Operating income		5,395		9,543		4,452		-			19,390
Interest expense		-		-		-		-			(769	)
Other income (expense), net		-		-		-		-			(1,257	)
Income taxes		-		-		-		-			(2,426	)
Net earnings		-		-		-		-			14,938
Depreciation and amortization		4,192		4,888		5,581		-			14,661
Expenditures for property, plant & equipment		7,156		4,160		2,271		-			13,587

	Nine Months Ended March 31, 2017
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	244,421	$	305,824	$	148,084	$	-		$	698,329
Inter-segment revenues		24,361		10,049		7,091		(41,501	)		-
Operating income		22,628		45,689		11,549		-			79,866
Interest expense		-		-		-		-			(4,547	)
Other income (expense), net		-		-		-		-			9,611
Income taxes		-		-		-		-			(22,303	)
Net earnings		-		-		-		-			62,627
Depreciation and amortization		17,025		14,853		12,844		-			44,722
Expenditures for property, plant & equipment		59,161		21,224		18,750		-			99,135

	Nine Months Ended March 31, 2016
	II-VI				II-VI
	Laser		II-VI		Performance
	Solutions		Photonics		Products		Eliminations			Total
Revenues	$	215,552	$	226,762	$	143,432	$	-		$	585,746
Inter-segment revenues		15,342		9,160		5,738		(30,240	)		-
Operating income		28,820		23,282		10,797		-			62,899
Interest expense		-		-		-		-			(2,015	)
Other income (expense), net		-		-		-		-			794
Income taxes		-		-		-		-			(10,535	)
Net earnings		-		-		-		-			51,143
Depreciation and amortization		11,587		14,961		15,237		-			41,785
Expenditures for property, plant & equipment		16,511		10,783		5,449		-			32,743