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Segment Reporting
 6 Months Ended
Dec. 31, 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 financial 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.  Finisar results have been included in the Photonic Solutions and Compound Semiconductors segments during the three months ended December 31, 2019.

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 through September 30, 2019, 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 December 31, 2019

 

 

 

Photonic

 

 

Compound

 

 

Unallocated

 

 

 

 

 

 

 

Solutions

 

 

Semiconductors

 

 

& Other

 

 

Total

 

Revenues

 

$

460,393

 

 

$

205,938

 

 

$

-

 

 

$

666,331

 

Inter-segment revenues

 

 

22,190

 

 

 

66,123

 

 

 

(88,313

)

 

 

-

 

Operating loss

 

 

(60,937

)

 

 

(8,835

)

 

 

(8,808

)

 

 

(78,580

)

Interest expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(28,390

)

Other income (expense), net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(487

)

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,242

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(98,213

)

Depreciation and amortization

 

 

55,174

 

 

 

26,978

 

 

 

-

 

 

 

82,152

 

Expenditures for property, plant & equipment

 

 

21,313

 

 

 

33,339

 

 

 

-

 

 

 

54,652

 

Segment assets

 

 

3,194,032

 

 

 

2,014,177

 

 

 

-

 

 

 

5,208,209

 

Goodwill

 

 

847,403

 

 

 

249,288

 

 

 

-

 

 

 

1,096,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

 

Photonic

 

 

Compound

 

 

Unallocated

 

 

 

 

 

 

 

Solutions

 

 

Semiconductors

 

 

& Other

 

 

Total

 

Revenues

 

$

159,694

 

 

$

183,145

 

 

$

-

 

 

$

342,839

 

Inter-segment revenues

 

 

2,504

 

 

 

17,538

 

 

 

(20,041

)

 

 

-

 

Operating income (loss)

 

 

23,087

 

 

 

23,622

 

 

 

(7,103

)

 

 

39,606

 

Interest expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,580

)

Other income, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

701

 

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6,025

)

Net earnings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

28,702

 

Depreciation and amortization

 

 

6,462

 

 

 

15,867

 

 

 

-

 

 

 

22,329

 

Expenditures for property, plant & equipment

 

 

11,223

 

 

 

27,246

 

 

 

-

 

 

 

38,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31, 2019

 

 

 

Photonic

 

 

Compound

 

 

Unallocated

 

 

 

 

 

 

 

Solutions

 

 

Semiconductors

 

 

& Other

 

 

Total

 

Revenues

 

$

601,749

 

 

$

382,940

 

 

$

22,051

 

 

$

1,006,740

 

Inter-segment revenues

 

 

24,840

 

 

 

80,056

 

 

 

(104,896

)

 

 

-

 

Operating income (loss)

 

 

(47,913

)

 

 

17,686

 

 

 

(66,827

)

 

 

(97,054

)

Interest expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(35,358

)

Other income (expense), net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,566

)

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

13,766

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(124,211

)

Depreciation and amortization

 

 

61,990

 

 

 

43,367

 

 

 

3,743

 

 

 

109,100

 

Expenditures for property, plant & equipment

 

 

30,702

 

 

 

46,822

 

 

 

2,764

 

 

 

80,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31, 2018

 

 

 

Photonic

 

 

Compound

 

 

Unallocated

 

 

 

 

 

 

 

Solutions

 

 

Semiconductors

 

 

& Other

 

 

Total

 

Revenues

 

$

294,850

 

 

$

362,422

 

 

$

-

 

 

$

657,272

 

Inter-segment revenues

 

 

7,726

 

 

 

34,708

 

 

 

(42,434

)

 

 

-

 

Operating income (loss)

 

 

38,999

 

 

 

44,923

 

 

 

(7,103

)

 

 

76,819

 

Interest expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11,164

)

Other income, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,414

 

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,218

)

Net earnings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

54,851

 

Depreciation and amortization

 

 

12,661

 

 

 

31,838

 

 

 

-

 

 

 

44,499

 

Expenditures for property, plant & equipment

 

 

23,274

 

 

 

50,113

 

 

 

-

 

 

 

73,386