Reportable Segments

9 Months Ended

Mar. 27, 2016

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

The Company's operating and reportable segments are:

• Lighting Products

• LED Products

• Power and RF Products

Reportable Segments Description

The Company's Lighting Products segment primarily consists of LED lighting systems and bulbs. The Company's LED Products segment includes LED chips, LED components and SiC materials. The Company's Power and RF Products segment includes power devices and RF devices.

Financial Results by Reportable Segment

The table below 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 27, 2016 and March 29, 2015. The Company's CODM is the Chief Executive Officer. The Company used 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 transactions when evaluating segment performance and allocating resources to each segment, and inter-segment transactions are not included in the segment revenue presented in the table below. 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 Statements of Income (Loss) must be included to reconcile the consolidated gross profit presented in the table below to the Company's consolidated (loss) income before income 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 revenue. 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.

Unallocated costs in the table below consisted primarily of manufacturing employees’ stock-based compensation, expenses for profit sharing and quarterly or annual incentive plans and matching contributions under the Company’s 401(k) plan. These costs were not allocated to the reportable segments’ gross profit because the Company’s CODM does not review them regularly when evaluating segment performance and allocating resources.

Revenue, gross profit and gross margin for each of the Company's segments were as follows (in thousands, except percentages):

	Three Months Ended						Nine Months Ended
	March 27, 2016			March 29, 2015			March 27, 2016			March 29, 2015
Revenue:
Lighting Products revenue		$187,714			$224,109			$690,715			$677,363
LED Products revenue	150,189			154,384			451,759			479,851
Power and RF Products revenue	29,016			31,026			85,740			93,134
Total revenue		$366,919			$409,519			$1,228,214			$1,250,348
Gross Profit and Gross Margin:
Lighting Products gross profit		$48,808			$58,315			$190,531			$178,608
Lighting Products gross margin	26.0		%	26.0		%	27.6		%	26.4		%
LED Products gross profit	52,102			55,358			156,489			182,406
LED Products gross margin	34.7		%	35.9		%	34.6		%	38.0		%
Power and RF Products gross profit	13,477			16,484			42,146			51,601
Power and RF Products gross margin	46.4		%	53.1		%	49.2		%	55.4		%
Total segment gross profit	114,387			130,157			389,166			412,615
Unallocated costs	(5,354		)	(5,009		)	(15,115		)	(15,386		)
Consolidated gross profit		$109,033			$125,148			$374,051			$397,229
Consolidated gross margin	29.7		%	30.6		%	30.5		%	31.8		%

Assets by Reportable Segment

Inventories are the only assets reviewed by the Company's CODM when evaluating segment performance and allocating resources to the segments. The CODM reviews all of the Company's assets other than inventories on a consolidated basis.

Unallocated inventories in the table below were not allocated to the reportable segments because the Company’s CODM does not review them when evaluating performance and allocating resources to each segment. Unallocated inventories consisted primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation and matching contributions under the Company’s 401(k) plan.

Inventories for each of the Company's segments were as follows (in thousands):

	March 27, 2016		June 28, 2015
Lighting Products		$168,347		$150,755
LED Products	107,480		114,203
Power and RF Products	18,102		11,536
Total segment inventories	293,929		276,494
Unallocated inventories	3,931		4,082
Consolidated inventories		$297,860		$280,576