Segment Reporting

3 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting

Note 13. 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 two segments: (i) Compound Semiconductors, and (ii) Photonic Solutions, 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.

On September 24, 2019, the Company completed its acquisition of Finisar. See Note 3, Finisar Acquisition. Through September 30, 2019, the operating results of the Finisar acquisition are reflected in Unallocated and Other since the acquisition.

The accounting policies are consistent across each segment. To the extent possible, the Company’s corporate expenses and assets are allocated to the segments. Unallocated and Other includes eliminating inter-segment sales and transfers, the results of Finisar since the acquisition date, and transaction costs related to the Finisar transaction. See Note 3 for additional information.

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

	Three Months Ended September 30, 2019
	Photonic		Compound		Unallocated
	Solutions		Semiconductors		& Other			Total
Revenues	$	141,357	$	177,001	$	22,051		$	340,409
Inter-segment revenues		2,650		13,933		(16,583	)		-
Operating income (loss)		13,024		26,521		(58,019	)		(18,475	)
Interest expense		-		-		-			(6,968	)
Other income (expense), net		-		-		-			5,079
Income taxes		-		-		-			(4,524	)
Net earnings (loss)		-		-		-			(25,998	)
Depreciation and amortization		6,816		16,389		3,743			26,948
Expenditures for property, plant & equipment		9,389		13,483		2,764			25,636
Segment assets		685,064		1,335,595		3,350,027			5,370,686
Goodwill	$	132,945	$	186,385	$	759,239		$	1,078,569

	Three Months Ended September 30, 2018
	Photonic		Compound		Unallocated
	Solutions		Semiconductors		& Other			Total
Revenues	$	135,156	$	179,277	$	-		$	314,433
Inter-segment revenues		2,896		19,215		(22,111	)		-
Operating income		15,912		21,301		-			37,213
Interest expense		-		-		-			(5,584	)
Other income, net		-		-		-			713
Income taxes		-		-		-			(6,193	)
Net earnings		-		-		-			26,149
Depreciation and amortization		6,199		15,971		-			22,170
Expenditures for property, plant & equipment	$	12,051	$	22,867	$	-		$	34,918