Reportable Segments

9 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Reportable Segments

The Company's three operating and reportable segments include:

• LED Products

• Lighting Products

• Power and RF Products

Reportable Segments Description

The Company's LED Products segment includes LED components, LED chips, and SiC materials. The Company's Lighting Products segment consists of both LED and traditional lighting systems, with its primary focus on LED lighting. The Company's Power and RF Products segment includes power devices and RF devices.

Financial Results by Reportable Segment

The following table reflects the results of the Company's reportable segments as reviewed by the Chief Operating Decision Maker (CODM) for the three and nine months ended March 31, 2013 and March 25, 2012. The Company's CODM is the Chief Executive Officer.

The Company uses substantially the same accounting policies to derive the segment results reported below as those used in the Company's consolidated financial statements.

The Company's CODM does not review inter-segment revenue when evaluating segment performance and allocating resources to each segment. Thus, inter-segment revenue is not included in the segment revenues presented in the following table. As such, total segment revenue in the table below is equal to the Company's consolidated revenue.

The Company's CODM reviews gross profit as the lowest and only level of segment profit. As such, all items below gross profit in the consolidated statement of income must be included to reconcile the consolidated gross profit presented in the following table to the Company's consolidated income before taxes.

In order to determine gross profit for each reportable segment, the Company allocates direct costs and indirect costs to each segment's cost of sales. The Company allocates indirect costs, such as employee benefits for manufacturing employees, shared facilities services, information technology, purchasing, and customer service, when the costs are identifiable and beneficial to the reportable segment. The Company allocates these indirect costs based on a reasonable measure of utilization that considers the specific facts and circumstances of the costs being allocated. Inventory is normally transferred between the Company's reportable segments at cost. However, due to the vertically-integrated nature of the Company's business and the fixed cost nature of the Company's manufacturing operations, the Company will apportion lower of cost or market write-downs on products among the segments involved in producing the products. The lower of cost or market write-down is apportioned based on each segments' proportional production cost and is reported as an increase to each segment's cost of sales. The Company's CODM evaluates segment performance and resource allocation after apportionment of any lower of cost or market write-downs. For the three and nine months ended March 31, 2013, the Company allocated $2.2 million for a lower of cost or market write-down from the Lighting Products segment to the LED Products segment.

Unallocated costs in the table below are not reviewed by the CODM when evaluating segment performance and allocating resources to each segment. These unallocated costs include variable compensation costs for manufacturing employees consisting primarily of stock-based compensation, expenses for profit sharing and quarterly or annual incentive plans, matching contributions under the Company's 401(k) plan, and acquisition related costs.

	Three Months Ended						Nine Months Ended
	March 31, 2013			March 25, 2012			March 31, 2013			March 25, 2012
	(In thousands)
Revenue
LED Products	$	195,561		$	180,944		$	584,070		$	571,884
Lighting Products	130,659			86,527			361,446			233,936
Power and RF Products	22,714			17,330			65,457			52,079
Total Revenue	$	348,934		$	284,801		$	1,010,973		$	857,899
Gross Profit
LED Products	$	85,728		$	70,257		$	245,381		$	218,319
Lighting Products	39,966			24,640			115,449			72,517
Power and RF Products	12,033			7,954			35,253			21,970
Total Segment Gross Profit	137,727			102,851			396,083			312,806
Unallocated Costs	(4,717		)	(3,438		)	(13,548		)	(10,247		)
Consolidated Gross Profit	$	133,010		$	99,413		$	382,535		$	302,559