Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Trading Symbol | IIVI |
Entity Registrant Name | II-VI INC |
Entity Central Index Key | 820,318 |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 247,038 | $ 271,888 |
Accounts receivable - less allowance for doubtful accounts of $837 at June 30, 2018 and $1,314 at June 30, 2017 | 215,032 | 193,379 |
Inventories | 248,268 | 203,695 |
Prepaid and refundable income taxes | 7,845 | 6,732 |
Prepaid and other current assets | 43,654 | 26,602 |
Total Current Assets | 761,837 | 702,296 |
Property, plant & equipment, net | 524,890 | 367,728 |
Goodwill | 270,678 | 250,342 |
Other intangible assets, net | 125,069 | 133,957 |
Investments | 69,215 | 11,727 |
Deferred income taxes | 2,046 | 3,023 |
Other assets | 7,926 | 8,224 |
Total Assets | 1,761,661 | 1,477,297 |
Current Liabilities | ||
Current portion of long-term debt | 20,000 | 20,000 |
Accounts payable | 89,774 | 65,540 |
Accrued compensation and benefits | 66,322 | 58,178 |
Accrued income taxes payable | 17,392 | 12,178 |
Other accrued liabilities | 42,979 | 29,056 |
Total Current Liabilities | 236,467 | 184,952 |
Long-term debt | 419,013 | 322,022 |
Deferred income taxes | 27,241 | 15,345 |
Other liabilities | 54,629 | 54,415 |
Total Liabilities | 737,350 | 576,734 |
Shareholders' Equity | ||
Preferred stock, no par value; authorized - 5,000,000 shares; none issued | ||
Common stock, no par value; authorized - 300,000,000 shares; issued - 75,692,683 shares at June 30, 2018; 74,081,451 shares at June 30, 2017 | 351,761 | 269,638 |
Accumulated other comprehensive income (loss) | (3,780) | (13,778) |
Retained earnings | 836,064 | 748,062 |
Shareholders' equity excluding treasury stock | 1,184,045 | 1,003,922 |
Treasury stock, at cost - 12,395,791 shares at June 30, 2018 and 10,940,062 shares at June 30, 2017 | (159,734) | (103,359) |
Total Shareholders' Equity | 1,024,311 | 900,563 |
Total Liabilities and Shareholders' Equity | $ 1,761,661 | $ 1,477,297 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 837 | $ 1,314 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 75,692,683 | 74,081,451 |
Treasury stock, shares | 12,395,791 | 10,940,062 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 1,158,794 | $ 972,046 | $ 827,216 |
Costs, Expenses and Other Expense (Income) | |||
Cost of goods sold | 696,591 | 583,684 | 514,959 |
Internal research and development | 116,875 | 96,806 | 60,578 |
Selling, general and administrative | 208,565 | 176,000 | 160,763 |
Interest expense | 18,352 | 6,809 | 3,081 |
Other expense (income), net | (3,783) | (10,041) | (2,120) |
Total Costs, Expenses and Other Expense (Income) | 1,036,600 | 853,258 | 737,261 |
Earnings Before Income Taxes | 122,194 | 118,788 | 89,955 |
Income Taxes | 34,192 | 23,514 | 24,469 |
Net Earnings | $ 88,002 | $ 95,274 | $ 65,486 |
Basic Earnings Per Share | $ 1.41 | $ 1.52 | $ 1.07 |
Diluted Earnings Per Share | $ 1.35 | $ 1.48 | $ 1.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 88,002 | $ 95,274 | $ 65,486 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 7,152 | (2,275) | (15,651) |
Pension adjustment, net of taxes of $763, $674, and ($1,886) for the years ended June 30, 2018, 2017, and 2016, respectively | 2,846 | 2,514 | (7,031) |
Other comprehensive income (loss) | 9,998 | 239 | (22,682) |
Comprehensive income | $ 98,000 | $ 95,513 | $ 42,804 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Pension adjustment tax | $ 763 | $ 674 | $ (1,886) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Beginning Balance at Jun. 30, 2015 | $ 729,081 | $ 226,609 | $ 8,665 | $ 587,302 | $ (93,495) |
Beginning Balance, shares at Jun. 30, 2015 | 71,780 | (10,565) | |||
Share-based and deferred compensation activities | 17,324 | $ 17,790 | $ (466) | ||
Share-based and deferred compensation activities (in shares) | 1,060 | (20) | |||
Net earnings | 65,486 | 65,486 | |||
Purchases of treasury stock | (6,284) | $ (6,284) | |||
Purchases of treasury stock, shares | (381) | ||||
Foreign currency translation adjustments | (15,651) | (15,651) | |||
Pension adjustment, net of taxes | (7,031) | (7,031) | |||
Tax deficiency from share-based compensation expense | (587) | $ (587) | |||
Ending Balance at Jun. 30, 2016 | 782,338 | $ 243,812 | (14,017) | 652,788 | $ (100,245) |
Ending Balance, shares at Jun. 30, 2016 | 72,840 | (10,966) | |||
Share-based and deferred compensation activities | 22,712 | $ 25,826 | $ (3,114) | ||
Share-based and deferred compensation activities (in shares) | 1,241 | 26 | |||
Net earnings | 95,274 | 95,274 | |||
Foreign currency translation adjustments | (2,275) | (2,275) | |||
Pension adjustment, net of taxes | 2,514 | 2,514 | |||
Ending Balance at Jun. 30, 2017 | 900,563 | $ 269,638 | (13,778) | 748,062 | $ (103,359) |
Ending Balance, shares at Jun. 30, 2017 | 74,081 | (10,940) | |||
Share-based and deferred compensation activities | 19,217 | $ 25,717 | $ (6,500) | ||
Share-based and deferred compensation activities (in shares) | 1,612 | (41) | |||
Net earnings | 88,002 | 88,002 | |||
Purchases of treasury stock | (49,875) | $ (49,875) | |||
Purchases of treasury stock, shares | (1,415) | ||||
Foreign currency translation adjustments | 7,152 | 7,152 | |||
Equity portion of convertible debt, net of issuance costs of $1,694 | 56,406 | $ 56,406 | |||
Pension adjustment, net of taxes | 2,846 | 2,846 | |||
Ending Balance at Jun. 30, 2018 | $ 1,024,311 | $ 351,761 | $ (3,780) | $ 836,064 | $ (159,734) |
Ending Balance, shares at Jun. 30, 2018 | 75,693 | (12,396) |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Pension adjustment tax | $ 763 | $ 674 | $ (1,886) |
Debt issuance costs | $ 1,694 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 88,002 | $ 95,274 | $ 65,486 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 66,202 | 50,894 | 44,324 |
Amortization | 14,568 | 12,743 | 12,339 |
Share-based compensation expense | 15,312 | 11,756 | 9,675 |
Losses (gains) on foreign currency remeasurements and transactions | 850 | (1,275) | (51) |
Earnings from equity investments | (3,594) | (744) | (29) |
Deferred income taxes | 945 | (1,184) | 977 |
Increase (decrease) in cash from changes in (net of effects of acquisitions and dispositions): | |||
Accounts receivable | (21,044) | (26,247) | (20,770) |
Inventories | (38,732) | (24,992) | (8,650) |
Accounts payable | 17,436 | 6,704 | 5,715 |
Income taxes | 7,380 | 735 | 13,416 |
Other operating net assets | 13,689 | (5,048) | 538 |
Net cash provided by operating activities | 161,014 | 118,616 | 122,970 |
Cash Flows from Investing Activities | |||
Additions to property, plant & equipment | (153,438) | (138,517) | (58,170) |
Purchases of equity investments | (52,056) | ||
Proceeds from the sale of business | 45,000 | ||
Purchases of businesses, net of cash acquired | (80,503) | (40,015) | (122,157) |
Other investing activities | 1,047 | 1,291 | 161 |
Net cash used in investing activities | (284,950) | (177,241) | (135,166) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of 0.25% convertible senior notes due 2022 | 345,000 | ||
Proceeds from borrowings under Credit Facility | 100,000 | 129,000 | 125,200 |
Payments on borrowings under Credit Facility | (292,000) | (25,000) | (65,700) |
Payment on earnout consideration | (2,000) | ||
Proceeds from exercises of stock options | 10,469 | 15,092 | 9,653 |
Payments in satisfaction of employees' minimum tax obligations | (6,564) | (4,136) | (2,004) |
Debt issuance costs | (10,061) | (1,384) | |
Purchases of treasury stock | (49,875) | (6,284) | |
Other financing activities | 587 | ||
Net cash provided by financing activities | 96,969 | 111,572 | 61,452 |
Effect of exchange rate changes on cash and cash equivalents | 2,117 | 496 | (4,445) |
Net (decrease) increase in cash and cash equivalents | (24,850) | 53,443 | 44,811 |
Cash and Cash Equivalents at Beginning of Period | 271,888 | 218,445 | 173,634 |
Cash and Cash Equivalents at End of Period | 247,038 | 271,888 | 218,445 |
Non cash transactions: | |||
Purchases of business - earnout consideration recorded in Other liabilities | 2,417 | ||
Purchases of business - earnout consideration recorded in Other accrued liabilities | 2,250 | $ 1,935 | |
Capital lease obligation incurred on facility lease | 25,000 | ||
Additions to property, plant & equipment included in accounts payable | $ 12,313 | $ 4,428 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - 0.25% Convertible Senior Note Due 2022 | 12 Months Ended |
Jun. 30, 2018 | |
Debt instrument, interest rate | 0.25% |
Debt instrument maturity date | Sep. 1, 2022 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Note 1. Nature of Business and Summary of Significant Accounting Policies Nature of Business. II-VI Incorporated and its subsidiaries (the “Company,” “we,” “us,” or “our”), a global leader in engineered materials and optoelectronic components and devices, is a vertically-integrated manufacturing company that develops, manufactures and markets engineered materials and optoelectronic components and devices for precision use in industrial materials processing, optical communications, military, consumer electronics, semiconductor equipment, life sciences and automotive applications. The Company markets its products through its direct sales force and through distributors and agents. The Company uses certain uncommon materials and compounds to manufacture its products. Some of these materials are available from only one proven outside source. The continued high quality of these materials is critical to the stability of the Company’s manufacturing yields. The Company has not experienced significant production delays due to a shortage of materials. However, the Company does occasionally experience problems associated with vendor-supplied materials not meeting specifications for quality or purity. A significant failure of the Company’s suppliers to deliver sufficient quantities of necessary high-quality materials on a timely basis could have a material adverse effect on the Company’s results of operations. Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency Translation. For II-VI Singapore Pte., Ltd. and its subsidiaries, II-VI Laser Enterprise of the II-VI Laser Solutions segment, II-VI Network Solutions Division of the II-VI Photonics segment, and II-VI Performance Metals of the II-VI Performance Products segment, the functional currency is the United States (U.S.) dollar. The determination of the functional currency is made based on the appropriate economic and management indicators. For all other foreign subsidiaries, the functional currency is the local currency. Assets and liabilities of those operations are translated into U.S. dollars using period-end exchange rates while income and expenses are translated using the average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income within shareholders’ equity in the accompanying Consolidated Balance Sheets. Cash and Cash Equivalents. The Company considers highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and to date have not experienced credit losses in these instruments. Cash of foreign subsidiaries is on deposit at banks in China, Vietnam, Singapore, Japan, Switzerland, the Netherlands, Germany, the Philippines, Belgium, Italy, Hong Kong, the United Kingdom, South Korea and Taiwan. Accounts Receivable. The Company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues, net of this allowance, is reasonably assured. Inventories. Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers, if applicable, other factors, including known trends, market conditions, currency exchange rates and other such issues. The Company generally records an inventory adjustment as a charge against earnings for all products on hand more than 12 to 24 months, depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional charge may be recorded for product on hand that is in excess of product sold to customers over the same periods noted above. The cumulative adjustments to the carrying value of inventory totaled $22.5 million and $18.5 million at June 30, 2018 and 2017, respectively. Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair value upon acquisition. Major improvements are capitalized, while maintenance and repairs are generally expensed as incurred. The Company reviews its property, plant and equipment and other long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Depreciation for financial reporting purposes is computed primarily by the straight-line method over the estimated useful lives for building, building improvements and land improvements of 10 to 20 years and three to 20 years for machinery and equipment. Business Combinations. The Company accounts for business acquisitions by establishing the acquisition-date fair value as the measurement for all assets acquired and liabilities assumed. Certain provisions of U.S. GAAP prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. The Company accounts for contingent consideration received in accordance with the “Loss Recovery Approach” under U.S. GAAP. Contingent consideration is accounted for as a gain contingency and not recognized in other expense (income), net until all contingencies have been satisfied. Goodwill. The excess purchase price over the fair value allocated to identifiable tangible and intangible net assets of businesses acquired is reported as goodwill in the accompanying Consolidated Balance Sheets. The Company tests goodwill for impairment at least annually as of April 1, or when events or changes in circumstances indicate that goodwill might be impaired. The evaluation of impairment involves comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company uses a discounted cash flow (“DCF”) model and/or a market analysis to determine the current fair value of its reporting units. A number of significant assumptions and estimates are involved in estimating the forecasted cash flows used in the DCF model, including markets and market shares, sales volume and pricing, costs to produce, working capital changes and income tax rates. Management considers historical experience and all available information at the time the fair values of the reporting units are estimated. Goodwill impairment is now measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill prior to completing the quantitative assessment described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the quantitative assessment. Otherwise, the Company will forego the quantitative assessment and does not need to perform any further testing. As of April 1 of fiscal years 2018 and 2017, the Company completed its annual impairment tests of its reporting units using the quantitative assessment. Based on the results of these analyses the Company’s goodwill was not impaired. Intangibles. Intangible assets are initially recorded at their cost or fair value upon acquisition. Finite-lived intangible assets are amortized for financial reporting purposes using the straight-line method over the estimated useful lives of the assets ranging from five to 20 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1, or when events or changes in circumstances indicate that indefinite-lived intangible assets might be impaired. Investments in Other Entities. In the normal course of business, the Company enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by the Company in business entities, including general or limited partnerships, contractual ventures, or other forms of equity participation. The Company determines whether such investments involve a variable interest entity (“VIE”) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if the Company is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When the Company is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a noncontrolling interest. The Company generally accounts for investments it makes in VIEs in which it has determined that it does not have a controlling financial interest but has significant influence over and holds at least a 20% ownership interest using the equity method. Any such investment not meeting the parameters to be accounted under the equity method would be accounted for using the cost method unless the investment had a readily determinable fair value, at which it would then be reported. If an entity fails to meet the characteristics of a VIE, management then evaluates such entity under the voting model. Under the voting model, management consolidates the entity if they determine that the Company, directly or indirectly, has greater than 50% of the voting shares and determines that other equity holders do not have substantive participating rights. Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Such accruals are adjusted as further information develops or circumstances change. The Company had no material loss contingency liabilities at June 30, 2018 related to commitments and contingencies. Income Taxes. Deferred income tax assets and liabilities are determined based on the differences between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount more likely than not to be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in facts and circumstances. For example, adjustments could result from significant amendments to existing tax law and the issuance of regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes that its estimates for uncertain tax positions are appropriate and sufficient to pay assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties related to unrecognized tax benefits in income tax expense. Revenue Recognition. The Company recognizes revenues for product shipments when persuasive evidence of a sales arrangement exists, the product has been shipped or delivered, the sale price is fixed or determinable and collectability is reasonably assured. Title and risk of loss passes from the Company to its customer at the time of shipment in most cases with the exception of certain customers. For these customers, title does not pass and revenue is not recognized until the customer has received the product at its physical location. The Company’s revenue recognition policy is consistently applied across the Company’s segments, product lines and geographical locations. Further for the periods covered herein, we did not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges. Our distributors and agents are not granted price protection. Our distributors and agents, which comprise less than 10% of consolidated revenues, have no additional product return rights beyond the right to return defective products covered by our warranty policy. Revenues generated from transactions other than product shipments are contract related and have historically accounted for approximately 1% of consolidated revenues. We believe our revenue recognition practices have adequately considered the requirements under U.S. GAAP. Shipping and Handling Costs. Shipping and handling costs billed to customers are included in revenues. Shipping and handling costs incurred by the Company are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. Total shipping and handling revenue and costs included in revenues and in selling, general and administrative expenses were not significant for the fiscal years ended June 30, 2018, 2017 and 2016. Research and Development. Internal research and development costs and costs not related to customer and government funded research and development contracts are expensed as incurred. Share-Based Compensation. Share-based compensation arrangements require the recognition of the grant-date fair value of stock compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. Accumulated Other Comprehensive Income. Accumulated other comprehensive income is a measure of all changes in shareholders’ equity that result from transactions and other economic events in the period other than transactions with owners. Accumulated other comprehensive (loss) income is a component of shareholders’ equity and consists of accumulated foreign currency translations adjustments and pension adjustments. Fair Value Measurements. The Company applies fair value accounting for all financial assets and liabilities that are required to be recognized or disclosed at fair value in the financial statements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact, and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Operating The Company classifies operating leases in accordance with the provisions of lease accounting. Rent expense under noncancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess straight-line rent expense over scheduled payments is recorded as a deferred liability. The current portion of unamortized deferred lease costs is included in other accrued liabilities and the long-term portion is included in other liabilities in the Consolidated Balance Sheets. Capital The Company accounts for capital leases at the lesser of the estimated fair market value of the leased property or the net present value of the aggregate future minimum lease payments. The current and long-term portion of the capital lease obligation is recorded in Other accrued liabilities and other liabilities, respectively, in the Consolidated Balance Sheet. Capital lease assets are included in property, plant & equipment and are generally depreciated over the term of the lease. Interest expense on capital leases are included in interest expense in the Consolidated Statements of Earnings. Recently Issued Financial Accounting Standards Adopted Pronouncements In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. The adoption of this standard resulted in (decreases) increases to cost of goods sold of ($0.9) million, ($0.0) million, $0.6 million, (decreases) increases to internal research and development of ($0.4) million, ($0.0) million, $0.2 million, (decreases) increases to selling, general and administrative of ($0.2) million, ($0.0) million and $0.1 million and increases (decreases) to other income (expense), net of $1.5 million, $0.0 million and ($0.9) million for each of the years ended June 30, 2018, 2017 and 2016, respectively. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. This standard removes the second step of the goodwill impairment test, where a determination of the fair value of individual assets and liabilities of a reporting unit were needed to measure the goodwill impairment. Under this updated standard, goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has adopted this standard for any impairment test that is performed after July 1, 2017 as permitted under the standard. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, and classification in the statement of cash flows. Under this ASU, excess tax benefits or deficiencies are recognized in income tax expense in the Consolidated Statement of Earnings. Upon adoption of this ASU, the Company had a valuation allowance for its U.S. deferred tax assets and did not recognize any tax benefit. Had the Company not had a valuation allowance, the Company would have recognized a tax benefit of $2.4 million. The impact to the Company’s dilutive shares under this new standard was immaterial. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This update simplifies the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. This update eliminates the requirement to retrospectively apply the equity method in previous periods when an investor obtains significant influence over an investee. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Revenue Recognition Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09: Revenue from Contracts with Customers (Topic 606), that outlines a five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This new standard became effective for the Company on July 1, 2018, and will be adopted using the modified retrospective transition method. Based on review and analysis of our contracts, the standard primarily impacts our II-VI Performance Product segment, which has long-term production contracts with customers that sell to the U.S. Government. Prior to adoption of the new standard, revenue was generally recognized for these contracts at a point-in-time as units were shipped, while under the new standard, revenue will be recognized over time, principally under the units-of-delivery method which faithfully depicts the transfer of control to the customers. This change will result in an immaterial change in revenue for these contracts and no transition adjustment is anticipated for July 1, 2018. We have updated the accounting policies affected by this standard, redesigned our related internal controls over financial reporting and are expanding the disclosures to be included in our first quarter 2019 Condensed Consolidated Financial Statements to meet the new requirements. Other Pronouncements Currently Under Evaluation In June 2018, the FASB issued ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting”, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The standard will be effective for the Company’s 2020 fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The standard will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. Early adoption is permitted. The standard will be effective for the Company’s 2019 fiscal year. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This update changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. Early adoption is permitted. The standard will be effective for the Company’s 2019 fiscal year. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update requires that when intra-entity asset transfers occur, the entity must recognize tax effects in the period in which the transfer occurs. The standard will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The guidance clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flow. The update will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The adoption of the ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update is intended to provide financial statement users with more decision-useful information about expected credit losses and other commitments to extend credit held by the reporting entity. The standard replaces the incurred loss impairment methodology in current GAAP with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The update will be effective for the Company’s 2021 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard will become effective for the Company’s fiscal year 2020, which begins on July 1, 2019. The Company will adopt the new guidance utilizing the modified retrospective transition method. We have reviewed the requirements of this standard and have formulated a plan for implementation. We are currently working on accumulating a complete population of leases from all of our locations and have selected a software repository to track all of our lease agreements and to assist in the reporting and disclosure requirements required by the standard. We will continue to assess and disclose the impact that this new guidance will have on our consolidated financial statements, disclosures and related controls, when known. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2. Acquisitions CoAdna, Inc. In March 2018, the Company announced its intention to acquire CoAdna, Inc. (“CoAdna”), a publically traded company on the Taiwan Stock Exchange and based in Sunnyvale, CA, in a cash transaction valued at approximately $85.0 million, net of any cash acquired. The transaction is expected to close during the first quarter of fiscal year 2019 and will be subject to regulatory approvals and customary closing conditions. Kaiam Laser Limited, Inc. In August 2017, the Company acquired Kaiam Laser Limited, Inc. (“Kaiam”), a privately held company based in Newton Aycliffe, United Kingdom. Under the terms of the merger agreement, the consideration consisted of cash paid at the acquisition date of $79.5 million, net of cash acquired and an adjustment for a purchase price reduction of $0.5 million. The acquisition of Kaiam provides the Company with a 150mm wafer fabrication platform to significantly expand the Company’s capacity for the production of vertical cavity surface emitting lasers (“VCSELs”) for the 3D sensing market and broadens the capability to address new market opportunities in other compound semiconductor materials. Kaiam now operates under the name II-VI Compound Semiconductor Ltd., within the Company’s II-VI Laser Solutions operating segment. The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 79 Inventories 4,559 Prepaid and other assets 1,246 Property, plant & equipment 63,899 Intangible assets 4,046 Goodwill 18,956 Total assets acquired $ 92,785 Liabilities Accounts payable $ 751 Other accrued liabilities 2,486 Deferred tax liabilities 10,555 Total liabilities assumed 13,792 Net assets acquired $ 78,993 The goodwill of $19.0 million is included in the II-VI Laser Solutions segment and is attributed to the expected synergies and the assembled workforce of II-VI Compound Semiconductor Ltd. None of the goodwill is deductible for income tax purposes. The Company expensed transaction costs of $0.6 million for the year ended June 30, 2018. The amount of revenues of II-VI Compound Semiconductor Ltd. included in the Company’s Consolidated Statement of Earnings for the year ended June 30, 2018 was $3.4 million. The amount of net losses of II-VI Compound Semiconductor Ltd. included in the Company’s Consolidated Statements of Earnings for the year ended June 30, 2018 was $12.5 million. Integrated Photonics, Inc. In June 2017, the Company acquired Integrated Photonics, Inc. (“IPI”), a privately held company based in New Jersey. IPI is a leader in engineered magneto-optic materials that enable high-performance directional components such as optical isolators for the optical communications market. Under the terms of the merger agreement, the consideration consisted of initial cash paid at the acquisition date of $40.1 million, net of cash acquired and a final working capital adjustment of $0.8 million. In addition, the agreement provides up to a maximum of $2.5 million of additional cash earnout opportunities based upon IPI achieving certain agreed-upon financial and transitional objectives, which if earned would be payable in the amount of $2.5 million for the achievement of the annual target. The following table presents the final purchase price at the date of acquisition ($000): Net cash paid at acquisition $ 40,098 Working capital adjustment 848 Fair value of cash earnout arrangement 2,215 Purchase price $ 43,161 The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 2,083 Inventories 3,968 Prepaid and other assets 322 Property, plant & equipment 11,235 Intangible assets 23,554 Goodwill 17,514 Total assets acquired $ 58,676 Liabilities Accounts payable $ 847 Other accrued liabilities 1,032 Long-term debt assumed 3,834 Deferred tax liabilities 9,802 Total liabilities assumed 15,515 Net assets acquired $ 43,161 The goodwill of $17.5 million is included in the II-VI Photonics and II-VI Performance Products segments and is attributed to the expected synergies and the assembled workforce of IPI. None of the goodwill is deductible for income tax purposes. The fair value of accounts receivable acquired was $2.1 million, with the gross contractual amount being $2.1 million. At the time of acquisition, the Company expected to collect all of the accounts receivable. The Company expensed transaction costs of $0.3 million during the year ended June 30, 2017. The amount of revenues of IPI included in the Company’s Consolidated Statements of Earnings for the years ended June 30, 2018 and 2017 was $19.3 million and $1.3 million, respectively. The amount of net earnings of IPI included in the Company’s Consolidated Statements of Earnings for the years ended June 30, 2018 and 2017 was $3.8 million and $0.1 million, respectively. |
Other Investments
Other Investments | 12 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Other Investments | Note 3. Other Investments Purchase of Equity Investment In November 2017, the Company acquired a 93.8% equity investment in a privately-held company for $51.5 million. In addition, the Company paid $0.2 million for a working capital adjustment to that purchase price. The Company’s pro-rata share of earnings from this investment since the acquisition date was $2.4 million for the year ended June 30, 2018 and was recorded in other expense (income), net in the Consolidated Statement of Earnings. This investment is accounted for under the equity method of accounting (“Equity Investment”). The following table summarizes the Company's equity in this nonconsolidated investment: Interest Ownership % as of Equity as of Location Type June 30, 2018 June 30, 2018 ($000) USA Equity Investment 93.8% $ 56,331 The Equity Investment has been determined to be a variable interest entity because the Company has an overall 93.8% economic position in the investee, comprising a significant portion of its capitalization, but has only a 25% voting interest. The Company’s obligation to receive rewards and absorb expected losses is disproportionate to its voting interest. The Company is not the primary beneficiary because it does not have the power to direct the activities of the equity investment that most significantly impact its economic performance. Certain business decisions, including decisions with respect to operating budgets, material capital expenditures, indebtedness, significant acquisitions or dispositions, and strategic decisions, require the approval of owners holding a majority percentage in the Equity Investment. Beginning on the date it was acquired, the Company accounted for its interest as an equity method investment as the Company has the ability to exercise significant influence over operating and financial policies of the Equity Investment. As of June 30, 2018, the Company’s maximum financial statement exposure related to the Equity Investment was approximately $56.3 million, which is included in Investments on the Consolidated Balance Sheet as of June 30, 2018. The Company has the right to purchase all of the outstanding interest of each of the minority equity holders and the minority equity holders have the right to cause the Company to purchase all of their outstanding interests at any time on or after the third anniversary of the investment, or earlier upon certain events. The purchase price is equal to the greater of: (a) (i) the product of the aggregate trailing 12-month revenues of the equity investment preceding the date of purchase, multiplied by (ii) a factor of 2.9 multiplied by (iii) a factor of 0.723, multiplied by (iv) the percentage interest owned by each minority equity holder and (b) $966,666. The Company performed a Monte Carlo simulation to estimate the fair value of the net put option at the investment date and recorded a liability of $2.2 million in Other long-term liabilities in the Consolidated Balance Sheet in accordance with ASC 815-10, Derivatives and Hedging. The fair value of the net put option is adjusted as necessary on a quarterly basis, with any changes in the fair value recorded through earnings. The change in fair value of the net purchase option from the investment date to June 30, 2018 was not material. Guangdong Fuxin Electronic Technology Equity Investment The Company has an equity investment of 20.2% in Guangdong Fuxin Electronic Technology, based in Guangdong Province, China, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at June 30, 2018 and June 30, 2017 was $12.9 million and $11.7 million, respectively. During the years ended June 30, 2018, 2017 and 2016, the Company’s pro-rata share of earnings from this investment was $1.2 million, $0.7 million and $0.1 million, respectively, and was recorded in other expense (income), net in the Consolidated Statements of Earnings. During the years ended June 30, 2018, 2017 and 2016, the Company received dividends from this equity investment of $0.4 million, $0.4 million and $0.6 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories The components of inventories were as follows: June 30, 2018 2017 ($000) Raw materials $ 97,502 $ 78,979 Work in progress 83,002 61,679 Finished goods 67,764 63,037 $ 248,268 $ 203,695 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant & Equipment | Note 5. Property, Plant & Equipment Property, plant & equipment consist of the following: June 30, 2018 2017 ($000) Land and land improvements $ 9,072 $ 5,667 Buildings and improvements 216,507 144,293 Machinery and equipment 633,934 492,042 Construction in progress 88,350 88,458 947,863 730,460 Less accumulated depreciation (422,973 ) (362,732 ) $ 524,890 $ 367,728 Depreciation expense was $66.2 million, $50.9 million and $44.3 million for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets Goodwill represents the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon fair value at the date of acquisition. Effective July 1, 2018, the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved IPI from II-VI Photonics to II-VI Performance Products. All applicable information has been restated to reflect this change. Changes in the carrying amount of goodwill were as follows ($000): Year Ended June 30, 2018 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 79,527 $ 108,544 $ 62,271 $ 250,342 Goodwill acquired 18,956 - - 18,956 Goodwill adjustment for prior year acquisition - IPI - 407 - 407 Foreign currency translation 254 719 - 973 Balance-end of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 Year Ended June 30, 2017 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 84,105 $ 96,760 $ 52,890 $ 233,755 Goodwill acquired - 17,107 - 17,107 Segment realignment (4,653 ) (4,728 ) 9,381 - Foreign currency translation 75 (595 ) - (520 ) Balance-end of period $ 79,527 $ 108,544 $ 62,271 $ 250,342 The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2018 and 2017 were as follows ($000): June 30, 2018 June 30, 2017 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 66,812 $ (32,979 ) $ 33,833 $ 65,438 $ (27,313 ) $ 38,125 Trade Names 15,882 (1,471 ) 14,411 15,806 (1,340 ) 14,466 Customer Lists 127,603 (50,792 ) 76,811 123,058 (41,740 ) 81,318 Other 1,573 (1,559 ) 14 1,571 (1,523 ) 48 Total $ 211,870 $ (86,801 ) $ 125,069 $ 205,873 $ (71,916 ) $ 133,957 Amortization expense recorded on the intangible assets for the fiscal years ended June 30, 2018, 2017 and 2016 was $14.6 million, $12.7 million, and $12.3 million, respectively. The technology and patents are being amortized over a range of 60 to 240 months with a weighted-average remaining life of approximately 91 months. The customer lists are being amortized over 60 to 240 months with a weighted-average remaining life of approximately 140 months. In conjunction with the acquisition of II-VI Compound Semiconductor Ltd., the Company recorded $0.4 million attributed to the value of technology and patents and $3.6 million of customer lists. The intangibles were recorded based on the Company’s final purchase price allocation utilizing either a discounted cash flow or relief from royalty method to derive the fair value. In connection with past acquisitions, the Company acquired trade names with indefinite lives. The carrying amount of these trade names of $14.3 million as of June 30, 2018 is not amortized but tested annually for impairment. The Company completed its impairment test of these trade names with indefinite lives in the fourth quarter of fiscal years 2018 and 2017. Based on the results of these tests, the trade names were not impaired in fiscal years 2018 and 2017. The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000): Year Ending June 30, 2019 $ 12,400 2020 14,000 2021 12,600 2022 10,900 2023 10,700 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt The components of debt were as follows ($000): June 30, 2018 2017 0.25% Convertible senior notes $ 345,000 $ - Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount (56,409 ) - Term loan, interest at LIBOR, as defined, plus 1.75% and 1.50%, respectively 65,000 85,000 Line of credit, interest at LIBOR, as defined, plus 1.75% and 1.50%, respectively 80,000 252,000 Credit facility unamortized debt issuance costs (1,126 ) (1,491 ) Yen denominated line of credit, interest at LIBOR, as defined, plus 1.75% and 0.625%, respectively 2,714 2,679 Note payable assumed in IPI acquisition 3,834 3,834 Total debt 439,013 342,022 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 419,013 $ 322,022 0.25% Convertible Senior Notes On August 24, 2017, the Company entered into a purchase agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several initial purchasers named therein (collectively, the “Initial Purchasers”), to issue and sell $300 million aggregate principal amount of our 0.25% convertible senior notes due 2022 (the "Notes") in a private placement to qualified institutional buyers within the meaning of Rule 144A under the Securities Act of 1933, as amended. In addition, we granted the Initial Purchasers a 30-day option to purchase up to an additional $45 million aggregate principal amount of the Notes (the “Over-Allotment Option”). On August 29, 2017, the Initial Purchasers exercised their Over-Allotment Option to purchase the entire $45 million in aggregate principal amount of additional Notes. The Notes mature on September 1, 2022, unless earlier repurchased by the Company or converted by holders in accordance with the terms of the Notes. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The sale of the Notes to the Initial Purchasers settled on August 29, 2017, and resulted in approximately $336 million in net proceeds to the Company after deducting the initial purchasers’ discount and the estimated offering expenses. The net proceeds from the offering and sale of the Notes were used, in part, to repurchase approximately $49.9 million of our common stock. The Company used the remaining net proceeds to repay $252 million on its revolving credit facility and to pay debt issuance costs of $10.1 million. The Notes are governed by an Indenture between the Company, as issuer, and U.S. Bank, National Association, as trustee. The Notes are our senior unsecured obligations and rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to any of our indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. In the event of our bankruptcy, liquidation, reorganization or other winding up, our assets that secure secured debt will be available to pay obligations on the Notes only after all indebtedness under such secured debt has been repaid in full from such assets. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at the Company’s election. As a result of our cash conversion option, the Company separately accounted for the value of the embedded conversion option as a debt discount. The value of the embedded conversion option was determined based on the estimated fair value of the debt without the conversion feature, which was determined using an expected present value technique (income approach) to estimate the fair value of similar nonconvertible debt; the debt discount is being amortized as additional non-cash interest expense over the term of the Notes using the effective interest method with an effective interest rate of 4.5% per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The initial conversion rate is 21.25 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of $47.06 per share of common stock. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. The if-converted value of the Notes amounted to $318.5 million as of June 30, 2018 (based on the Company’s closing stock price on the last trading day of the year ended June 30, 2018). Holders of the Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than cancelled, extinguished or forfeited. Prior to the close of business on the business day immediately preceding June 1, 2022, the Notes will be convertible only upon satisfaction of at least one of the conditions as follows: a) During any fiscal quarter (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price on each applicable trading day; b) During the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or c) Upon the occurrence of specified corporate events. On or after June 1, 2022 until the close of business on the business day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. As of June 30, 2018, the Notes are not yet convertible. The Notes will become convertible upon the satisfaction of at least one of the above conditions. In accounting for the transaction costs related to the Note issuance, the Company allocated the total amount of offering costs incurred to the debt and equity components based on their relative values. Offering costs attributable to the debt component, totaling $8.4 million, are being amortized as non-cash interest expense over the term of the Notes, and offering costs attributable to the equity component, totaling $1.7 million, were recorded within Shareholders' Equity. The Company was in compliance with all the covenants set forth under the indenture. The following table sets forth total interest expense recognized related to the Notes for the fiscal year ended June 30, 2018 (representing an effective interest rate of 4.5%): Year ended June 30, 2018 0.25% contractual coupon $ 731 Amortization of debt discount and debt issuance costs including initial purchaser discount 10,058 Interest expense $ 10,789 The unamortized discount amounted to $49.3 million as of June 30, 2018 and is being amortized over 4 years. Amended Credit Facility On July 28, 2016, the Company amended and restated its existing credit agreement. The Third Amended and Restated Credit Agreement (the “Amended Credit Facility”) provides for a revolving credit facility of $325 million, as well as a $100 million term loan. The term loan is being repaid in consecutive quarterly principal payments on the first business day of each January, April, July and October, with the first payment having commenced on October 1, 2016, as follows: (i) twenty consecutive quarterly installments of $5 million and (ii) a final installment of all remaining principal due and payable on the maturity date of July 27, 2021. Amounts borrowed under the revolving credit facility are due and payable on the maturity date. The Amended Credit Facility is unsecured, but is guaranteed by each existing and subsequently acquired or organized wholly-owned domestic subsidiary of the Company. The Company has the option to request an increase to the size of the revolving credit facility in an aggregate additional amount not to exceed $100 million. The Amended Credit Facility has a five-year term through July 27, 2021 and has an interest rate of either a Base Rate Option or a Euro-Rate Option, plus an Applicable Margin, as defined in the agreement governing the Amended Credit Facility. If the Base Rate option is selected for a borrowing, the Applicable Margin is 0.00% to 1.25% and if the Euro-Rate Option is selected for a borrowing, the Applicable Margin is 1.00% to 2.25%. The Applicable Margin is based on the ratio of the Company’s consolidated indebtedness to consolidated EBITDA. Additionally, the Credit Facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of June 30, 2018, the Company was in compliance with all financial covenants under its Amended Credit Facility. Yen Loan The Company’s yen denominated line of credit is a 500 million Yen ($4.5 million) facility. The Yen line of credit matures in August 2020. The interest rate equal to LIBOR, as defined in the loan agreement, plus 0.625% to 1.75%. At June 30, 2018 and 2017, the Company had 300 million yen outstanding under the line of credit. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of June 30, 2018, the Company had $2.7 million outstanding and was in compliance with all covenants under its Yen facility. Note Payable In conjunction with the acquisition of IPI, the Company assumed a non-interest bearing note payable owed to a major customer of IPI. The agreement, if not terminated early by either party, is payable in full in January 2020. Singapore Line of Credit The Company has a line of credit facility with a Singapore bank which permits maximum borrowings in the local currency of approximately $0.6 million for the fiscal years ended June 30, 2018 and 2017, respectively. Borrowings are payable upon demand with interest charged at the rate of 1.00% above the bank’s prevailing prime lending rate. The interest rate was 5.25% at June 30, 2018 and June 30, 2017. At June 30, 2018 and 2017, there were no outstanding borrowings under this facility. The Company had $0.3 million and $0.2 million of letters of credit supported by the Singapore line of credit facility as of June 30, 2018 and 2017, respectively. Aggregate Availability The Company had aggregate availability of $246.4 million and $73.5 million under its lines of credit as of June 30, 2018 and 2017, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. As of June 30, 2018 and 2017, total outstanding letters of credit supported by the credit facilities were $0.4 million and $1.3 million, respectively. Weighted Average Interest Rate The weighted average interest rate of total borrowings was 1.3% and 2.2% for the years ended June 30, 2018 and 2017, respectively. The weighted average of total borrowings for the fiscal years ended June 30, 2018 and 2017 was $476.6 million and $272.1 million, respectively. There are no interim maturities or minimum payment requirements related to the credit facilities before their respective expiration dates. Interest and commitment fees paid during the fiscal year ended June 30, 2018, 2017 and 2016 were $6.6 million, $6.1 million and $3.1 million, respectively. Remaining Annual Principal Payments Remaining annual principal payments under the Company’s existing credit facilities and notes payable as of June 30, 2018 were as follows ($000): U.S. Dollar Term Yen Line Line of Note Convertibles Period Loan of Credit Credit Payable Notes Total June 30, 2019 $ 20,000 $ - $ - $ - $ - $ 20,000 June 30, 2020 20,000 - - 3,834 - $ 23,834 June 30, 2021 20,000 2,714 - - - $ 22,714 June 30, 2022 5,000 - 80,000 - - $ 85,000 June 30, 2023 - - - - 345,000 $ 345,000 Total $ 65,000 $ 2,714 $ 80,000 $ 3,834 $ 345,000 $ 496,548 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes The components of earnings (losses) before income taxes were as follows: Year Ended June 30, 2018 2017 2016 ($000) U.S. loss $ (15,207 ) $ (6,944 ) $ (5,809 ) Non-U.S. income 137,401 125,732 95,764 Earnings before income taxes $ 122,194 $ 118,788 $ 89,955 The components of income tax expense were as follows: Year Ended June 30, 2018 2017 2016 ($000) Current: Federal $ 699 $ 2,133 $ 3,704 State 401 253 5 Foreign 32,147 22,312 19,783 Total Current $ 33,247 $ 24,698 $ 23,492 Deferred: Federal $ (3,064 ) $ (6,963 ) $ 2,759 State 1,615 (1,251 ) 1,302 Foreign 2,394 7,030 (3,084 ) Total Deferred $ 945 $ (1,184 ) $ 977 Total Income Tax Expense $ 34,192 $ 23,514 $ 24,469 Principal items comprising deferred income taxes were as follows: June 30, 2018 2017 ($000) Deferred income tax assets Inventory capitalization $ 5,267 $ 6,338 Non-deductible accruals 1,125 1,705 Accrued employee benefits 7,614 9,738 Net-operating loss and credit carryforwards 48,738 53,048 Share-based compensation expense 7,925 12,386 Other 3,242 1,761 Valuation allowances (21,797 ) (42,562 ) Total deferred income tax assets $ 52,114 $ 42,414 Deferred income tax liabilities Tax over book accumulated depreciation $ (24,174 ) $ (7,803 ) Intangible assets (24,649 ) (38,108 ) Tax on unremitted earnings (13,090 ) (6,210 ) Convertible debt (11,376 ) - Other (4,020 ) (2,615 ) Total deferred income tax liabilities $ (77,309 ) $ (54,736 ) Net deferred income taxes $ (25,195 ) $ (12,322 ) The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense is as follows: Year Ended June 30, 2018 % 2017 % 2016 % ($000) Taxes at statutory rate $ 34,284 28 $ 41,576 35 $ 31,484 35 Increase (decrease) in taxes resulting from: State income taxes-net of federal benefit 1,426 1 (641 ) - 864 1 Taxes on non U.S. earnings (16,058 ) (13 ) (12,907 ) (11 ) (13,860 ) (15 ) Valuation allowance (6,008 ) (5 ) (806 ) (1 ) 8,464 9 Research and manufacturing incentive deductions and credits (7,024 ) (6 ) (5,681 ) (5 ) (4,374 ) (5 ) Stock compensation (4,103 ) (3 ) 1,770 2 702 1 Repatriation tax 36,777 30 - - - - Impact of U.S. tax rate change on deferred balances (4,209 ) (3 ) - - - - Other (893 ) (1 ) 203 - 1,189 1 $ 34,192 28 $ 23,514 20 $ 24,469 27 U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. As the Company has a June 30 fiscal year end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for the Company’s fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. As part of the transition to the new territorial tax system, the Tax Act imposes a one-time repatriation tax on total post-1986 earnings and profits (“E&P”) of foreign subsidiaries that were previously deferred from U.S. income taxes. At June 30, 2018, the Company has not finalized its accounting for the tax effects of the Tax Act; however, as described below, management has made a reasonable estimate of the effects on existing deferred tax balances and has recorded an estimated amount for its one-time repatriation tax, resulting in an increase in income tax expense. The Company has yet to complete its calculation of the total post-1986 foreign E&P and therefore may change. The impact of the repatriation tax is expected to be offset by available net operating loss and credit carryforwards which currently have a valuation allowance. Thus the tax expense reported is reduced by the release of the valuation allowance on U.S. deferred tax assets. The reduction of the U.S. corporate tax rate caused the Company to adjust the U.S. deferred tax assets and liabilities to the lower U.S. statutory federal rate of 21%. However, the Company will continue to analyze certain aspects of the Tax Act which could affect the measurement of these balances or give rise to new deferred tax amounts. In addition, the Company has recorded withholding taxes on planned repatriation due to the change to a territorial tax system. The transitional impacts described above resulted in a cumulative provisional net charge to income tax expense of $8.0 million for the year ended June 30, 2018. The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the estimates recorded during the year ended June 30, 2018, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the transition impacts, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries. The Securities and Exchange Commission has issued rules that allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company currently anticipates finalizing and recording any resulting adjustments by the end of the quarter ending December 31, 2018. During the fiscal years ended June 30, 2018, 2017, and 2016, net cash paid by the Company for income taxes was $21.3 million, $23.6 million, and $18.5 million, respectively. Our foreign subsidiaries in the Philippines operate under various tax holiday arrangements. The benefits of such arrangements phase out through the fiscal year ended June 30, 2019. The impact of the tax holidays on our effective rate is a reduction in the rate of 0.17%, 0.31% and 0.37% for the fiscal years ended June 30, 2018, 2017 and 2016, respectively, and the impact of the tax holidays on diluted earnings per share is immaterial. The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2018: Type Amount Expiration Date ($000) Tax credit carryforwards: Federal research and development credits $ 13,913 June 2019-June 2038 Foreign tax credits 251 June 2024-June 2028 State tax credits 5,594 June 2019-June 2038 Operating loss carryforwards: Loss carryforwards - federal $ 68,661 June 2020-June 2038 Loss carryforwards - state 47,756 June 2019-June 2038 Loss carryforwards - foreign 16,347 June 2019-June 2028 The Company has recorded a valuation allowance against the majority of the loss and credit carryforwards. The Company’s U.S. federal loss carryforwards, federal research and development credit carryforwards, and certain state tax credits resulting from the Company’s acquisitions are subject to various annual limitations under Section 382 of the U.S. Internal Revenue Code. Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2018, 2017 and 2016 were as follows: 2018 2017 2016 ($000) Beginning balance $ 7,577 $ 5,559 $ 4,022 Increases in current year tax positions 2,536 895 2,146 Increases in prior year tax positions 224 2,605 190 Decreases in prior year tax positions (9 ) - (67 ) Settlements - (1,143 ) - Expiration of statute of limitations (436 ) (339 ) (732 ) Ending balance $ 9,892 $ 7,577 $ 5,559 The Company classifies all estimated and actual interest and penalties as income tax expense. During fiscal year 2018 and 2017, there was $0.3 million and $0.5 million of interest and penalties within income tax expense, respectively. During the fiscal year 2016, there was no interest or penalties within income tax expense. The Company had $0.6 million and $0.3 million of interest and penalties accrued at June 30, 2018 and 2017, respectively. The Company has classified the uncertain tax positions as non-current income tax liabilities, as the amounts are not expected to be paid within one year. Including tax positions for which the Company determined that the tax position would not meet the more likely than not recognition threshold upon examination by the tax authorities based upon the technical merits of the position, the total estimated unrecognized tax benefit that, if recognized, would affect our effective tax rate, was approximately $1.6 million and $1.3 million at June 30, 2018 and 2017, respectively. The Company expects a decrease of $3.4 million of unrecognized tax benefits during the next 12 months due to the expiration of statutes of limitation. Fiscal years 2015 to 2018 remain open to examination by the Internal Revenue Service, fiscal years 2013 to 2018 remain open to examination by certain state jurisdictions, and fiscal years 2008 to 2018 remain open to examination by certain foreign taxing jurisdictions. The Company is currently under examination for the U.S. Federal income tax return for the year ended June 30, 2016; certain subsidiary companies in the Philippines for the year ended June 30, 2017; and Germany for the years ended June 2012 through June 2015. The Company believes its income tax reserves for these tax matters are adequate. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9. Earnings Per Share The following table sets forth the computation of earnings per share for the periods indicated. Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share has been computed using the weighted average number of common shares outstanding during the period plus dilutive potential shares of common stock from (1) stock options, performance and restricted shares (under the treasury stock method) and (2) convertible debt (under the If-Converted method) outstanding during the period. The Company’s convertible debt calculated under the If-Converted method was antidilutive for the fiscal year 2018 and was excluded from the calculation of earnings per share. Year Ended June 30, 2018 2017 2016 ($000 except per share) Net earnings $ 88,002 $ 95,274 $ 65,486 Divided by: Weighted average shares 62,499 62,576 61,366 Basic earnings per common share $ 1.41 $ 1.52 $ 1.07 Net earnings $ 88,002 $ 95,274 $ 65,486 Divided by: Weighted average shares 62,499 62,576 61,366 Dilutive effect of common stock equivalents 2,634 1,931 1,543 Diluted weighted average common shares 65,133 64,507 62,909 Diluted earnings per common share $ 1.35 $ 1.48 $ 1.04 The following table presents potential shares of common stock excluded from the calculation of diluted net income per share, as their effect would have been antidilutive ($000): Year Ended June 30, 2018 2017 2016 Stock options and restricted shares 135 140 153 0.25% Convertible Senior Notes due 2022 7,331 - - Total anti-dilutive shares 7,466 140 153 |
Operating Leases
Operating Leases | 12 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Operating Leases | Note 10. Operating Leases The Company leases certain property under operating leases that expire at various dates. Future rental commitments applicable to the operating leases at June 30, 2018 are as follows: Year Ending June 30, ($000) 2019 $ 20,100 2020 19,100 2021 14,500 2022 11,700 2023 9,800 Thereafter 52,700 Rent expense was approximately $17.0 million, $14.7 million, and $14.2 million for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shared-Based Compensation Plans | Note 11. Share-Based Compensation Plans The Company’s Board of Directors adopted the II-VI Incorporated Amended and Restated 2012 Omnibus Incentive Plan (the “Plan”) which was approved by the shareholders at the Annual Meeting in November 2014 as amended. The Plan provides for the grant of non-qualified stock options, stock appreciation rights, restricted shares, restricted share units, deferred shares, performance shares and performance share units to employees, officers and directors of the Company. The maximum number of shares of the Company’s common stock authorized for issuance under the Plan is limited to 4,900,000 shares of common stock, not including any remaining shares forfeited under the predecessor plans that may be rolled into the Plan. The Plan has vesting provisions predicated upon the death, retirement or disability of the grantee. As of June 30, 2018, there were approximately 955,000 shares available to be issued under the Plan, including forfeited shares from predecessor plans. The Company records share-based compensation expense for these awards which requires the recognition of the grant-date fair value of share-based compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. The Company accounts for cash-based stock appreciation rights, cash-based restricted share unit awards and cash-based performance share unit awards as liability awards, in accordance with applicable accounting standards. Share-based compensation expense for the fiscal years ended June 30, 2018, 2017 and 2016 is as follows ($000): Year Ended June 30, 2018 2017 2016 Stock Options and Cash-Based Stock Appreciation Rights $ 6,605 $ 5,611 $ 4,309 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 7,850 6,799 4,401 Performance Share Awards and Cash-Based Performance Share Unit Awards 5,221 3,626 2,196 $ 19,676 $ 16,036 $ 10,906 The share-based compensation expense is allocated approximately 20% to cost of goods sold and 80% to selling, general and administrative expense in the Consolidated Statements of Earnings, based on the employee classification of the grantee. Share-based compensation expense associated with liability awards was $4.4 million, $4.3 million, and $1.2 million, in the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Stock Options and Cash-Based Stock Appreciation Rights: The Company utilized the Black-Scholes valuation model for estimating the fair value of stock option expense. During the fiscal years ended June 30, 2018, 2017 and 2016, the weighted-average fair value of options granted under the stock option plan was $14.23, $8.88 and $7.35, respectively, per option using the following assumptions: Year Ended June 30, 2018 2017 2016 Risk-free interest rate 2.00 % 1.43 % 1.68 % Expected volatility 37 % 37 % 38 % Expected life of options 6.43 years 6.28 years 6.43 years Dividend yield None None None The risk-free interest rate is derived from the average U.S. Treasury Note rate during the period, which approximates the rate in effect at the time of grant related to the expected life of the options. The risk-free interest rate shown above is the weighted average rate for all options granted during the fiscal year. Expected volatility is based on the historical volatility of the Company’s common stock over the period commensurate with the expected life of the options. The expected life calculation is based on the observed time to post-vesting exercise and/or forfeitures of options by our employees. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no current intention to pay cash dividends in the future. The estimated annualized forfeitures are based on the Company’s historical experience of option pre-vesting cancellations and are estimated at a rate of 17.6%. The Company will record additional expense in future periods if the actual forfeiture rate is lower than estimated, and will adjust expense in future periods if the actual forfeitures are higher than estimated. Stock option and cash-based stock appreciation rights activity during the fiscal year ended June 30, 2018 was as follows: Stock Options Cash-Based Stock Appreciation Rights Number of Weighted Average Number of Weighted Average Shares Exercise Price Rights Exercise Price Outstanding - July 1, 2017 4,080,915 $ 18.15 214,467 $ 19.17 Granted 474,270 $ 35.54 47,800 $ 35.46 Exercised (573,004 ) $ 18.27 (30,467 ) $ 18.44 Forfeited and Expired (53,473 ) $ 27.67 (26,352 ) $ 23.14 Outstanding - June 30, 2018 3,928,708 $ 20.07 205,448 $ 22.56 Exercisable - June 30, 2018 2,288,266 $ 17.24 59,766 $ 18.47 As of June 30, 2018, 2017 and 2016, the aggregate intrinsic value of stock options and cash-based stock appreciation rights outstanding and exercisable was $96.1 million, $69.3 million and $10.1 million, respectively. Aggregate intrinsic value represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year ended June 30, 2018, and the option’s exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2018. This amount varies based on the fair market value of the Company’s stock. The total intrinsic value of stock options and cash-based stock appreciation rights exercised during the fiscal years ended June 30, 2018, 2017, and 2016 was $14.7 million, $12.3 million, and $4.5 million, respectively. As of June 30, 2018, total unrecognized compensation cost related to non-vested stock options and cash-based stock appreciation rights was $13.9 million. This cost is expected to be recognized over a weighted-average period of approximately three years. Outstanding and exercisable stock options at June 30, 2018 were as follows: Stock Options and Cash-Based Stock Stock Options and Cash-Based Stock Appreciation Rights Outstanding Appreciation Rights Exercisable Weighted Weighted Weighted Weighted Number of Average Remaining Average Number of Average Remaining Average Range of Shares or Contractual Term Exercise Shares or Contractual Term Exercise Exercise Prices Rights (Years) Price Rights (Years) Price $10.04 - $15.38 902,022 4.21 $ 13.25 667,878 3.54 $ 12.99 $15.47 - $23.50 2,647,015 5.58 $ 19.29 1,657,129 4.40 $ 18.80 $25.91 - $39.65 569,559 9.00 $ 34.79 23,025 7.14 $ 31.23 $41.50 - $45.24 15,560 9.55 $ 42.87 - - $ - 4,134,156 5.77 $ 20.20 2,348,032 $ 4.18 $ 17.27 Restricted Share Awards and Cash-Based Restricted Share Unit Awards: Restricted share awards and cash-based restricted share unit awards compensation expense was calculated based on the number of shares or units expected to be earned by the grantee multiplied by the stock price at the date of grant (for restricted share awards) or the stock price at the period end date (for cash-based restricted share unit awards), and is being recognized over the vesting period. Generally, the restricted share awards and restricted share unit awards have a three year tranche vesting provision and an estimated forfeiture rate of 10.2%. Restricted share and cash-based restricted share unit activity during the fiscal year ended June 30, 2018, was as follows: Restricted Share Awards Cash-Based Restricted Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2017 811,833 $ 19.45 140,927 $ 19.12 Granted 166,348 $ 35.58 46,012 $ 35.43 Vested (370,571 ) $ 18.15 (55,189 ) $ 17.45 Forfeited (12,091 ) $ 28.71 (14,424 ) $ 24.97 Nonvested - June 30, 2018 595,519 $ 24.58 117,326 $ 25.57 As of June 30, 2018, total unrecognized compensation cost related to non-vested restricted share and cash-based restricted share unit awards was $9.7 million. This cost is expected to be recognized over a weighted-average period of approximately two years. The restricted share compensation expense was calculated based on the number of shares expected to be earned, multiplied by the stock price at the date of grant, and is being recognized over the vesting period. The cash-based restricted share unit compensation expense was calculated based on the number of shares expected to be earned, multiplied by the stock price at the period-end date, and is being recognized over the vesting period. The total fair value of the restricted share and cash-based restricted share unit awards granted during the years ended June 30, 2018, 2017 and 2016, was $7.5 million, $7.8 million and $6.3 million, respectively. The total fair value of restricted shares and cash-based restricted share unit awards vested was $17.0 million, $6.2 million and $5.5 million during fiscal years 2018, 2017 and 2016, respectively. Performance Share Awards and Cash-Based Performance Share Unit Awards: The Compensation Committee of the Board of Directors of the Company has granted certain executive officers and employees performance share awards and performance share unit awards under the Plan. As of June 30, 2018, the Company had outstanding grants covering performance periods ranging from 12 to 36 months. These awards are intended to provide continuing emphasis on specified financial performance goals that the Company considers important contributors to the creation of long-term shareholder value. These awards are payable only if the Company achieves specified levels of financial performance during the performance periods. The performance share compensation expense was calculated based on the number of shares expected to be earned, multiplied by the stock price at the date of grant, and is being recognized over the vesting period. The cash-based performance share unit compensation expense was calculated based on the number of shares expected to be earned, multiplied by the stock price at the period-end date, and is being recognized over the vesting period. Performance share and cash-based performance share unit award activity relating to the Plan during the year ended June 30, 2018, was as follows: Performance Share Awards Cash-Based Performance Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2017 377,710 $ 19.52 17,152 $ 19.37 Granted 99,168 $ 35.25 9,120 $ 35.25 Vested (70,210 ) $ 14.84 (2,221 ) $ 15.42 Forfeited (24,398 ) $ 17.84 (6,772 ) $ 25.88 Nonvested - June 30, 2018 382,270 $ 24.57 17,279 $ 25.71 As of June 30, 2018, total unrecognized compensation cost related to non-vested performance share and cash-based performance share unit awards was $4.7 million. This cost is expected to be recognized over a weighted-average period of approximately one year. The total fair value of the performance share and cash-based performance share unit awards granted during the fiscal years ended June 30, 2018, 2017 and 2016 was $3.8 million, $5.3 million and $2.4 million, respectively. The total fair value of performance shares vested during the fiscal years ended June 30, 2018, 2017 and 2016 was $3.6 million, $5.9 million and $1.5 million, respectively. For our relative Total Shareholder Return (“TSR”) performance-based awards, which are based on market performance of our stock as compared to the Russel 2000 Index, the compensation cost is recognized over the performance period on a straight-line basis net of forfeitures, because the awards vest only at the end of the measurement period and the probability of actual shares expected to be earned is considered in the grant date valuation. As a result, the expense is not adjusted to reflect the actual shares earned. We estimate the fair value of the TSR performance-based awards using the Monte-Carlo simulation model. |
Segment and Geographic Reportin
Segment and Geographic Reporting | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | Note 12. Segment and Geographic 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. Effective July 1, 2018, the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved IPI from II-VI Photonics to II-VI Performance Products. All applicable segment information has been restated to reflect this change. Additionally, the Company renamed Laser Systems Group to II-VI Industrial Laser. The II-VI Laser Solutions segment is located in the United States, Singapore, China, Germany, Switzerland, Japan, Belgium, the United Kingdom, Italy, South Korea, the Philippines and Taiwan. II-VI Laser Solutions designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used primarily in high-power CO 2 The II-VI Photonics segment is located in the United States, China, Vietnam, Germany, Japan, the United Kingdom, Italy and Hong Kong. II-VI Photonics manufactures crystal materials, optics, microchip lasers and optoelectronic modules for use in optical communication networks and other diverse consumer and commercial applications. In addition, the segment manufactures pump lasers, optical isolators, and optical amplifiers and micro-optics for optical amplifiers, for both terrestrial and submarine applications within the optical communications market. The II-VI Performance Products segment is located in the United States, Vietnam, Japan, China, Germany and the Philippines. II-VI Performance Products is further divided into production and administrative units that are directed by managers. II-VI Performance Products designs, manufactures and markets infrared optical components and high-precision optical assemblies for military, medical and commercial laser imaging applications. In addition, the segment designs, manufactures and markets unique engineered materials for thermoelectric and silicon carbide applications servicing the semiconductor, military and medical markets. On August 7, 2017, the Company completed its acquisition of II-VI Compound Semiconductor Ltd. See Note 2. Acquisitions. The operating results of this acquisition have been reflected in the selected financial information of the Company’s II-VI Laser Solutions segment. On June 19, 2017, the Company completed its acquisition of IPI. See Note 2. Acquisitions. The operating results of this acquisition have been reflected in the selected financial information of the Company’s II-VI Photonics and II-VI Performance Products segments. 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 from continuing operations before income taxes, interest and other income or expense. Inter-segment sales and transfers have been eliminated. The following tables summarize selected financial information of the Company’s operations by segment: II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2018 Revenues $ 405,940 $ 486,485 $ 266,369 $ - $ 1,158,794 Inter-segment revenues 34,590 11,180 26,262 (72,032 ) - Operating income 40,119 63,152 33,492 - 136,763 Interest expense - - - - (18,352 ) Other income, net - - - - 3,783 Income taxes - - - - (34,192 ) Net earnings - - - - 88,002 Depreciation and amortization 38,004 23,242 19,524 - 80,770 Expenditures for property, plant & equipment 80,776 36,122 44,425 - 161,323 Segment assets 740,020 554,574 467,067 - 1,761,661 Equity investments - - 69,215 - 69,215 Goodwill 98,737 109,670 62,271 - 270,678 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2017 Revenues $ 317,495 $ 440,361 $ 214,190 $ - $ 972,046 Inter-segment revenues 33,669 8,003 10,189 (51,861 ) - Operating income 27,459 66,462 21,635 - 115,556 Interest expense - - - - (6,809 ) Other income, net - - - - 10,041 Income taxes - - - - (23,514 ) Net earnings - - - - 95,274 Depreciation and amortization 24,684 21,612 17,341 - 63,637 Expenditures for property, plant & equipment 81,346 28,811 32,788 - 142,945 Segment assets 572,314 535,418 369,565 - 1,477,297 Equity investment - - 11,727 - 11,727 Goodwill 79,527 108,544 62,271 - 250,342 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2016 Revenues $ 289,434 $ 339,447 $ 198,335 $ - $ 827,216 Inter-segment revenues 23,685 10,569 7,274 (41,528 ) - Operating income 33,398 39,738 17,780 - 90,916 Interest expense - - - - (3,081 ) Other income, net - - - - 2,120 Income taxes - - - - (24,469 ) Net earnings - - - - 65,486 Depreciation and amortization 16,822 20,255 19,586 - 56,663 Expenditures for property, plant & equipment 24,885 21,831 11,454 - 58,170 Geographic information for revenues from the country of origin (shipped from), and long-lived assets from the country of origin, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows: Revenues Year Ended June 30, 2018 2017 2016 ($000) United States $ 373,735 $ 294,200 $ 266,347 Non-United States China 253,672 208,595 172,292 Hong Kong 186,978 190,702 140,821 Germany 132,161 88,304 72,070 Japan 89,153 76,212 57,287 Switzerland 49,557 50,497 54,760 Vietnam 26,898 22,497 24,267 Italy 11,458 10,791 10,160 Korea 9,757 6,584 3,887 United Kingdom 9,359 8,473 8,154 Singapore 5,941 3,913 3,039 Belgium 4,511 7,503 6,026 Philippines 3,909 3,057 8,106 Taiwan 1,705 718 - Total Non-United States 785,059 677,846 560,869 $ 1,158,794 $ 972,046 $ 827,216 Long-Lived Assets June 30, 2018 2017 2016 ($000) United States $ 309,062 $ 240,029 $ 137,521 Non-United States China 81,175 62,024 51,824 United Kingdom 65,357 396 203 Switzerland 37,155 36,795 38,202 Germany 14,876 15,323 15,162 Vietnam 10,042 8,272 8,895 Philippines 6,628 6,115 4,399 Hong Kong 2,818 1,914 1,765 Other 598 704 943 Total Non-United States 218,649 131,543 121,393 $ 527,711 $ 371,572 $ 258,914 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Fair Value of Financial Instruments | Note 13. Fair Value of Financial Instruments The FASB defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous markets for the asset and liability in an orderly transaction between market participants at the measurement date. The Company estimates fair value of its financial instruments utilizing an established three-level hierarchy in accordance with U.S. GAAP. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: • Level 1 – Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. • Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurements. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. At June 30, 2018, the Company had foreign currency forward contracts recorded at fair value. The fair values of these instruments were measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for credit risk and restrictions and other terms specific to the contracts. In February 2016, the Company entered into a contingent earnout arrangement which provides up to a maximum of $6.0 million of additional cash earnout opportunities based upon EpiWorks achieving certain agreed-upon financial and operational targets for capacity, wafer output and gross margin, which if earned would be payable for the achievement of each specific annual target over the next three years. The Company paid the first year earnout amount of $2.0 million during the year ended June 30, 2017. In June 2017, the Company entered into a contingent earnout arrangement which provides up to a maximum of $2.5 million of additional cash earnout opportunities based upon IPI achieving certain agreed-upon financial and transitional objectives relating to finance, information technology and human resources, which if earned, would be payable for the achievement of each specific annual target over the next year. In November 2017, the Company acquired a 93.8% equity investment in a privately held company. The Company has the right to purchase all of the outstanding interest of each of the minority equity holders and the minority equity holders have the right to cause the Company to purchase all of their outstanding interests at any time on or after the third anniversary of the investment, or earlier upon certain events. The Company performed a Monte Carlo simulation to estimate the fair value of the net put option at the investment date and recorded a liability of $2.2 million in “Other Liabilities” in the Consolidated Balance Sheet as of the acquisition date in accordance with ASC 815-10, Derivatives and Hedging. The fair value of the net put option is adjusted as necessary on a quarterly basis with any changes in the fair value recorded through earnings. The change in fair value of the net purchase option from the investment date to June 30, 2018 was not material. The fair values of these contingent earnout arrangements and the net put option were measured using valuations based on other unobservable inputs that are significant to the fair value measurement (Level 3). The Company estimated the fair value of the 0.25% convertible notes based on quoted market prices as of the last trading day prior to June 30, 2018; however, the convertible notes have only a limited trading volume and, as such, this fair value estimate is not necessarily the value at which the convertible notes could be retired or transferred. The Company concluded that this fair value measurement should be categorized within Level 2. The carrying value of the convertible notes is net of unamortized discount and issuance costs. See Note 7. Debt for details on the Company’s debt facilities. The fair value and carrying value of the convertible notes were as follows at June 30, 2018 ($000): Fair Value Carrying Value Convertible notes $ 388,125 $ 288,591 The following tables provide a summary by level of the fair value of financial instruments that are measured on a recurring basis as of June 30, 2018 and 2017 ($000): Fair Value Measurements at June 30, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 121 $ - $ 121 $ - Liabilities: Contingent earnout arrangements $ 5,405 $ - $ - $ 5,405 Net put option $ 2,024 $ - $ - $ 2,024 Fair Value Measurements at June 30, 2017 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2017 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 191 $ - $ 191 $ - Liabilities: Contingent earnout arrangements $ 5,795 $ - $ - $ 5,795 The Company’s policy is to report transfers into and out of Levels 1 and 2 of the fair value hierarchy at fair values as of the beginning of the period in which the transfers occur. There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy during fiscal years 2018 and 2017. The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s level 3 contingent earnout arrangements related to the acquisitions of II-VI EpiWorks and IPI and the net put option relating to the purchase of the equity investment in November 2017. ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2017 $ 5,795 Activity: Purchase price adjustment - IPI (35 ) Net put option 2,233 Changes in fair value recorded in other expense (income), net (564 ) Balance at June 30, 2018 $ 7,429 The fair values of cash and cash equivalents are considered Level 1 among the fair value hierarchy and approximate fair value because of the short-term maturity of those instruments. The Company’s borrowings includes both variable and fixed interest rates, non-interest bearing debt and a capital lease obligation and are considered Level 2 among the fair value hierarchy and accordingly their carrying amounts approximate fair value. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 14. Derivative Instruments The Company, from time to time, purchases foreign currency forward exchange contracts, primarily in Japanese Yen, that permit it to sell specified amounts of these foreign currencies expected to be received from its export sales, for pre-established U.S. dollar amounts at specified dates. These contracts are entered into to limit transactional exposure to changes in currency exchange rates of export sales transactions in which settlement will occur in future periods and which otherwise would expose the Company, on the basis of its aggregate net cash flows in respective currencies, to foreign currency risk. The Company has recorded the fair value of these contracts in the Company’s financial statements. These contracts had a total notional amount of $12.0 million and $12.7 million at June 30, 2018 and 2017, respectively. As of June 30, 2018, these forward contracts had expiration dates ranging from July 2018 through October 2018, with Japanese Yen denominations individually between 250 million and 500 million Yen. The Company does not account for these contracts as hedges as defined by U.S. GAAP and records the change in the fair value of these contracts in Other expense (income), net in the Consolidated Statements of Earnings as they occur. The fair value measurement takes into consideration foreign currency rates and the current creditworthiness of the counterparties to these contracts, as applicable, and is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments and thus represents a Level 2 measurement. These contracts are recorded in prepaid and other current assets in the Company’s Consolidated Balance Sheets as of June 30, 2018. The change in the fair value of these contracts for the fiscal year ended June 30, 2018, 2017 and 2016 was insignificant. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 15. Employee Benefit Plans Eligible U.S. employees of the Company participate in a profit sharing retirement plan. Contributions accrued for the plan are made at the discretion of the Company’s board of directors and were $5.0 million, $4.3 million, and $3.4 million for the years ended June 30, 2018, 2017 and 2016, respectively. The Company has an employee stock purchase plan available for employees who have completed six months of continuous employment with the Company. The employee may purchase the Company’s common stock at 5% below the prevailing market price. The amount of shares which may be bought by an employee during each fiscal year is limited to 10% of the employee’s base pay. This plan, as amended, limits the number of shares of common stock available for purchase to 1,600,000 shares. There were 462,798 and 477,949 shares of common stock available for purchase under the plan at June 30, 2018 and 2017, respectively. Switzerland Defined Benefit Plan In conjunction with the acquisition of II-VI Laser Enterprise in fiscal year 2014, the Company assumed a pension plan covering employees of our Swiss subsidiary (the “Swiss Plan”). Employer and employee contributions are made to the Swiss Plan based on various percentages of salary and wages that vary according to employee age and other factors. Employer contributions to the Swiss Plan for years ended June 30, 2018 and 2017 were $2.7 million and $2.4 million, respectively. Expected employer contributions in fiscal year 2019 are $2.7 million. The changes in the funded status of the Swiss Plan during the fiscal years ended June 30, 2018 and 2017 were as follows: Year Ended June 30, 2018 2017 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 59,518 $ 54,094 Service cost 3,766 3,689 Interest cost 424 163 Benefits accumulated, net of benefits paid 1,474 1,743 Plan amendments (Reduction of the conversion rate 6.8% to 6.2%) (4,068 ) - Actuarial (gain) loss on obligation 1,606 (2,777 ) Participant contributions 1,415 1,262 Currency translation adjustment (1,581 ) 1,344 Projected benefit obligation, end of period $ 62,554 $ 59,518 Change in plan assets: Plan assets at fair value, beginning of period 42,990 35,857 Actual return on plan assets 1,566 805 Employer contributions 2,731 2,432 Participant contributions 1,415 1,262 Benefits accumulated, net of benefits paid 1,474 1,743 Currency translation adjustment (1,142 ) 891 Plan assets at fair value, end of period $ 49,034 $ 42,990 Amounts recognized in consolidated balance sheets: Other non-current assets: Deferred tax asset $ 2,859 $ 3,496 Other non-current liabilities: Underfunded pension liability $ 13,520 16,528 Amounts recognized in accumulated other comprehensive income, net of tax: Pension adjustment $ 2,846 $ 2,514 Accumulated benefit obligation, end of period $ 59,800 $ 56,457 Net periodic pension cost associated with the Swiss Plan included the following components: Year Ended June 30, 2018 2017 2016 Service cost $ 3,766 $ 3,689 $ 2,680 Interest cost 424 163 434 Expected return on plan assets 849 (742 ) (1,097 ) Net actuarial loss and prior service credit 203 594 (234 ) Net periodic pension cost $ 5,242 $ 3,704 $ 1,783 The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2018 and 2017 using the following assumptions: June 30, 2018 2017 Discount rate 0.9 % 0.8 % Salary increase rate 2.0 % 2.0 % The net periodic pension cost for the Swiss Plan was calculated during the fiscal years ended June 30 2018, 2017, and 2016 using the following assumptions: Year Ended June 30, 2018 2017 2016 Discount rate 0.8 % 0.3 % 1.1 % Salary increase rate 2.0 % 2.0 % 2.0 % Expected return on plan assets 2.0 % 2.0 % 2.0 % The discount rate is based on assumed pension benefit maturity and estimates developed using the rate of return and yield curves for high quality Swiss corporate and government bonds. The salary increase rate is based on our best assessment for on-going increases over time. The expected long-term rate of return on plan assets is based on the expected asset allocation, taking into consideration historical long-term rates of return for the relevant asset categories. As is customary with Swiss pension plans, the assets of the plan are invested in a collective fund with multiple employers. We have no investment authority over the assets of the plan, which are held and invested by a Swiss insurance company. The investment strategy of the Swiss Plan is managed by an independent asset manager with the objective of achieving a consistent long-term return which will provide sufficient funding for future pension obligations while limiting risk. The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2018, the Swiss Plan’s asset allocation was as follows (all of which are categorized as Level 2 in the fair value hierarchy): June 30, 2018 2017 Fixed income investments 12.0 % 10.0 % Equity investments 50.0 % 52.0 % Real estate 31.0 % 26.0 % Cash 4.0 % 9.0 % Other 3.0 % 3.0 % 100.0 % 100.0 % Estimated future benefit payments under the Swiss Plan are estimated to be as follows: Year Ending June 30, ($000) 2019 $ 5,100 2020 1,800 2021 2,700 2022 2,900 2023 3,200 Next five years 22,400 Other Employee Benefit Plans The Company has no program for post-retirement health and welfare benefits. The II-VI Incorporated Deferred Compensation Plan (the “Compensation Plan”) is designed to allow officers and key employees of the Company to defer receipt of compensation into a trust fund for retirement purposes. Under the Compensation Plan, as it is currently implemented by the Company, eligible participants can elect to defer up to 100% of certain discretionary incentive compensation and certain equity awards into the Compensation Plan. The Compensation Plan is a nonqualified, defined contribution employees’ retirement plan. At the Company’s discretion, the Compensation Plan may be funded by the Company making contributions based on compensation deferrals, matching contributions and discretionary contributions. Compensation deferrals will be based on an election by the participant to defer a percentage of compensation under the Compensation Plan. All assets in the Compensation Plan are subject to claims of the Company’s creditors until such amounts are paid to the Compensation Plan participants. Employees of the Company made contributions to the Compensation Plan in the amounts of approximately $1.1 million, $0.8 million, and $1.2 million for the fiscal years ended June 30, 2018, 2017, and 2016, respectively. There were no employer contributions made to the Compensation Plan for the fiscal year ended June 30, 2016. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | Note 16. Other Accrued Liabilities The components of other accrued liabilities were as follows: June 30, 2018 2017 ($000) Deferred revenue $ 3,384 $ 2,345 Warranty reserve 4,679 4,546 Earnout arrangements 5,405 3,930 Other accrued liabilities 29,511 18,235 $ 42,979 $ 29,056 The following table summarizes the change in the carrying value of the Company’s warranty reserve included in Other Accrued Liabilities as of and for the years ended June 30, 2018 and 2017. Year Ended June 30, 2018 2017 ($000) Balance-Beginning of Year $ 4,546 $ 3,908 Settlements during the period (3,688 ) (4,212 ) Additional warranty liability recorded 3,821 4,850 Balance-End of Year $ 4,679 $ 4,546 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Commitments and Contingencies | Note 17. Commitments and Contingencies The Company has purchase commitments for materials and supplies as part of the ordinary conduct of business. A portion of the commitments are long-term and are based on minimum purchase requirements. Certain short-term raw material purchase commitments have a variable price component which is based on market pricing at the time of purchase. Due to the proprietary nature of some of the Company’s materials and processes, certain contracts may contain liquidated damage provisions for early termination. The Company does not believe that a significant amount of liquidated damages are reasonably likely to be incurred under these commitments based upon historical experience and current expectations. The Company also has commitments relating to earnout arrangements on its prior year acquisitions of $5.4 million and $85.0 million for the planned acquisition of CoAdna. Inc., for fiscal year 2019. Total future commitments are as follows: Year Ending June 30, ($000) 2019 $ 114,307 2020 3,477 2021 567 2022 - 2023 - |
Share Repurchase Programs
Share Repurchase Programs | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Share Repurchase Programs | Note 18. Share Repurchase Programs In August 2017, in conjunction with the Company’s offering and sale of the Notes, the Company’s Board of Directors authorized the Company to purchase up to $50 million of its common stock with a portion of the net proceeds received from the offering and sale of the Notes. The shares that were purchased by the Company pursuant to this authorization were retained as treasury stock and are available for general corporate purposes. The Company purchased 1,414,900 shares of its common stock for approximately $49.9 million pursuant to this authorization in fiscal 2018. In August 2014, the Company’s Board of Directors authorized the Company to purchase up to $50 million of its common stock through a share repurchase program (the “Program”) that calls for shares to be purchased in the open market or in private transactions from time to time. The Program has no expiration and may be suspended or discontinued at any time. Shares purchased by the Company are retained as treasury stock and available for general corporate purposes. The Company did not repurchase shares pursuant to this Program during the fiscal years ended June 30, 2018 and 2017. During the fiscal year ended June 30, 2016, the Company purchased 380,538 shares of its common stock for $6.3 million under this program. Through June 30, 2018, the Company has cumulatively purchased 1,316,587 shares of its common stock pursuant to the Program for approximately $19.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 19. Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (“AOCI”) by component, net of tax, for the years ended June 30, 2018, 2017, and 2016 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Income AOCI - June 30, 2015 $ 9,466 $ (801 ) $ 8,665 Other comprehensive income (loss) before reclassifications (15,651 ) (6,805 ) (22,456 ) Amounts reclassified from AOCI - (226 ) (226 ) Net current-period other comprehensive income (15,651 ) (7,031 ) (22,682 ) AOCI - June 30, 2016 (6,185 ) (7,832 ) (14,017 ) Other comprehensive income (loss) before reclassifications (2,275 ) 1,920 (355 ) Amounts reclassified from AOCI - 594 594 Net current-period other comprehensive income (2,275 ) 2,514 239 AOCI - June 30, 2017 $ (8,460 ) $ (5,318 ) $ (13,778 ) Other comprehensive income (loss) before reclassifications 7,152 2,643 9,795 Amounts reclassified from AOCI - 203 203 Net current-period other comprehensive income 7,152 2,846 9,998 AOCI - June 30, 2018 $ (1,308 ) $ (2,472 ) $ (3,780 ) |
Capital Lease
Capital Lease | 12 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Capital Lease | Note 20. Capital Lease During fiscal 2017, the Company’s OptoElectronic Devices subsidiary entered into a capital lease related to a building in Warren, New Jersey. The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): Fiscal Year Ending June 30, Amount 2019 $ 2,292 2020 2,355 2021 2,419 2022 2,486 2023 2,554 Thereafter 24,740 Total minimum lease payments $ 36,846 Less amount representing interest 11,906 Present value of capitalized payments $ 24,940 The current and long-term portion of the capital lease obligation was recorded in Other accrued liabilities and Other liabilities, respectively, in the Company’s Consolidated Balance Sheets as of June 30, 2018 and 2017. The present value of the minimum capital lease payments at inception was $25.0 million recorded in Property, Plant & Equipment, net, in the Company’s Consolidated Balance Sheet, with associated depreciation being recorded over the 15 year life of the lease. During the fiscal year ended June 30, 2018, the Company recorded $1.7 million of depreciation expense associated with the capital leased asset. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21. Subsequent Events CoAdna, Inc. In September 2018, the Company acquired CoAdna, Holdings, Inc. (TWSE:4984) (“CoAdna”), a publicly traded company on the Taiwan Stock Exchange and headquartered in Sunnyvale, CA, in a cash transaction valued at approximately $85.0 million, net of cash acquired of approximately $42.2 million at closing. CoAdna is a global leader in wavelength selective switches (WSS) based on its patented liquid crystal platform. CoAdna will operate within the Company’s II-VI Photonics operating segment. Finisar Corporation II-VI and Finisar Corporation (“Finisar”) have entered into an Agreement and Plan of Merger, dated as of November 8, 2018 (the “Merger Agreement”). Finisar is a global technology leader in optical communications, providing components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics and automotive companies. Pursuant to the terms of the Merger Agreement, Mutation Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of II-VI, will be merged with and into Finisar, and Finisar will continue as the surviving corporation in the merger and a wholly owned subsidiary of II-VI (the “Merger”). If the Merger is consummated, Finisar stockholders will be entitled to receive, at their election, consideration per share of common stock of Finisar (the “Finisar Common Stock”) consisting of (i) $26.00 in cash, without interest (the “Cash Election Consideration”), (ii) 0.5546 shares of II-VI common stock (the shares, the “II-VI Common Stock,” and the consideration, the “Stock Election Consideration”), or (iii) a combination of $15.60 in cash, without interest, and 0.2218 shares of II-VI Common Stock (the “Mixed Election Consideration,” and, together with the Cash Election Consideration and the Stock Election Consideration, the “Merger Consideration”). The Cash Election Consideration and the Stock Election Consideration are subject to proration adjustment pursuant to the terms of the Merger Agreement such that the aggregate Merger Consideration will consist of approximately 60% cash and approximately 40% II-VI Common Stock. The Merger is expected to close in the middle of calendar year 2019, subject to approval by each company’s shareholders, antitrust regulatory approvals and other customary closing conditions. Also on November 8, 2018, in connection with its entry into the Merger Agreement, II-VI entered into a commitment letter, which was subsequently amended and restated on December 7, 2018 and on December 14, 2018 (together with one or more related fee letters, the “Commitment Letter”). Subject to the terms and conditions set forth in the Commitment Letter, the lender parties thereto (the “Lending Parties”) have severally committed to provide 100% of up to $2.425 billion in aggregate principal amount of senior secured credit facilities of II-VI (the “II-VI Senior Credit Facilities”) comprised of (i) a “term a” delayed draw basis, (ii) a “term b” loan facility of up to $975.0 million and (iii) a revolving credit facility of up to $450.0 million. The obligations of the Lending Parties to provide the debt financing under the Commercial Letter is subject to a number of conditions. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (unaudited) Fiscal Year 2018 September 30, December 31, March 31, June 30, Quarter Ended 2017 2017 2018 2018 ($000) 2018 Net revenues $ 261,503 $ 281,470 $ 294,746 $ 321,075 Cost of goods sold 155,530 172,075 176,521 192,465 Internal research and development 25,575 27,779 30,625 32,896 Selling, general and administrative 50,624 49,130 53,121 55,690 Interest expense 3,645 4,644 5,014 5,049 Other expense (income) - net (770 ) (2,026 ) (1,755 ) 768 Earnings before income taxes 26,899 29,868 31,220 34,207 Income taxes 5,758 20,272 1,122 7,040 Net Earnings $ 21,141 $ 9,596 $ 30,098 $ 27,167 Basic earnings per share $ 0.34 $ 0.15 $ 0.48 $ 0.44 Diluted earnings per share $ 0.32 $ 0.15 $ 0.45 $ 0.42 Fiscal Year 2017 September 30, December 31, March 31, June 30, Quarter Ended 2016 2016 2017 2017 ($000) 2017 Net revenues $ 221,520 $ 231,822 $ 244,987 $ 273,717 Cost of goods sold 134,107 137,296 147,479 164,802 Internal research and development 21,908 23,526 25,462 25,910 Selling, general and administrative 42,119 43,440 43,333 47,108 Interest expense 1,246 1,365 1,936 2,262 Other expense (income) - net (1,707 ) (5,621 ) (2,490 ) (223 ) Earnings before income taxes 23,847 31,816 29,267 33,858 Income taxes 7,553 7,913 6,837 1,211 Net Earnings $ 16,294 $ 23,903 $ 22,430 $ 32,647 Basic earnings per share $ 0.26 $ 0.38 $ 0.36 $ 0.52 Diluted earnings per share $ 0.26 $ 0.37 $ 0.35 $ 0.50 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II II-VI INCORPORATED AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED JUNE 30, 2018, 2017, AND 2016 (IN THOUSANDS OF DOLLARS) Balance at Charged Charged Deduction Balance Beginning to to Other from at End of Year Expense Accounts Reserves of Year YEAR ENDED JUNE 30, 2018: Allowance for doubtful accounts $ 1,314 $ (129 ) $ - $ (348 ) (2) $ 837 Warranty reserves $ 4,546 $ 3,821 $ - $ (3,688 ) $ 4,679 Deferred tax asset valuation allowance $ 42,562 $ (4,602 ) $ (16,163 ) (5) $ - $ 21,797 YEAR ENDED JUNE 30, 2017: Allowance for doubtful accounts $ 2,016 $ (134 ) $ - $ (568 ) (2) $ 1,314 Warranty reserves $ 3,908 $ 4,850 $ - $ (4,212 ) $ 4,546 Deferred tax asset valuation allowance $ 42,641 $ (79 ) $ - $ - $ 42,562 YEAR ENDED JUNE 30, 2016: Allowance for doubtful accounts $ 1,048 $ 1,123 $ - $ (155 ) (2) $ 2,016 Warranty reserves $ 3,251 $ 4,648 $ 82 (1) $ (4,073 ) $ 3,908 Deferred tax asset valuation allowance $ 2,713 $ 8,464 $ 36,240 (3) $ (4,776 ) (4) $ 42,641 (1) Relates to the warranty reserve acquired from acquisitions. (2) Primarily relates to write-offs of accounts receivable. (3) Valuation allowance recorded through goodwill. (4) Reduction in valuation allowance as a result of divesture of portion of business. (5) Primarily relates to the Company’s deferred taxes on the conversion feature of the convertible debt. PART IV Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) (1) Financial Statements The financial statements are set forth under Item 8 of this Exhibit 99.1 to our Current Report on Form 8-K. (2) Schedules Schedule II – Valuation and Qualifying Accounts for each of the three fiscal years in the period ended June 30, 2018 is set forth under Item 8 of this Exhibit 99.1 to our Current Report on Form 8-K. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. |
Estimates | Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation. For II-VI Singapore Pte., Ltd. and its subsidiaries, II-VI Laser Enterprise of the II-VI Laser Solutions segment, II-VI Network Solutions Division of the II-VI Photonics segment, and II-VI Performance Metals of the II-VI Performance Products segment, the functional currency is the United States (U.S.) dollar. The determination of the functional currency is made based on the appropriate economic and management indicators. For all other foreign subsidiaries, the functional currency is the local currency. Assets and liabilities of those operations are translated into U.S. dollars using period-end exchange rates while income and expenses are translated using the average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income within shareholders’ equity in the accompanying Consolidated Balance Sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and to date have not experienced credit losses in these instruments. Cash of foreign subsidiaries is on deposit at banks in China, Vietnam, Singapore, Japan, Switzerland, the Netherlands, Germany, the Philippines, Belgium, Italy, Hong Kong, the United Kingdom, South Korea and Taiwan. |
Accounts Receivable | Accounts Receivable. The Company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues, net of this allowance, is reasonably assured. |
Inventories | Inventories. Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers, if applicable, other factors, including known trends, market conditions, currency exchange rates and other such issues. The Company generally records an inventory adjustment as a charge against earnings for all products on hand more than 12 to 24 months, depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional charge may be recorded for product on hand that is in excess of product sold to customers over the same periods noted above. The cumulative adjustments to the carrying value of inventory totaled $22.5 million and $18.5 million at June 30, 2018 and 2017, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair value upon acquisition. Major improvements are capitalized, while maintenance and repairs are generally expensed as incurred. The Company reviews its property, plant and equipment and other long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Depreciation for financial reporting purposes is computed primarily by the straight-line method over the estimated useful lives for building, building improvements and land improvements of 10 to 20 years and three to 20 years for machinery and equipment. |
Business Combinations | Business Combinations. The Company accounts for business acquisitions by establishing the acquisition-date fair value as the measurement for all assets acquired and liabilities assumed. Certain provisions of U.S. GAAP prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. The Company accounts for contingent consideration received in accordance with the “Loss Recovery Approach” under U.S. GAAP. Contingent consideration is accounted for as a gain contingency and not recognized in other expense (income), net until all contingencies have been satisfied. |
Goodwill | Goodwill. The excess purchase price over the fair value allocated to identifiable tangible and intangible net assets of businesses acquired is reported as goodwill in the accompanying Consolidated Balance Sheets. The Company tests goodwill for impairment at least annually as of April 1, or when events or changes in circumstances indicate that goodwill might be impaired. The evaluation of impairment involves comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company uses a discounted cash flow (“DCF”) model and/or a market analysis to determine the current fair value of its reporting units. A number of significant assumptions and estimates are involved in estimating the forecasted cash flows used in the DCF model, including markets and market shares, sales volume and pricing, costs to produce, working capital changes and income tax rates. Management considers historical experience and all available information at the time the fair values of the reporting units are estimated. Goodwill impairment is now measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill prior to completing the quantitative assessment described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the quantitative assessment. Otherwise, the Company will forego the quantitative assessment and does not need to perform any further testing. As of April 1 of fiscal years 2018 and 2017, the Company completed its annual impairment tests of its reporting units using the quantitative assessment. Based on the results of these analyses the Company’s goodwill was not impaired. |
Intangibles | Intangibles. Intangible assets are initially recorded at their cost or fair value upon acquisition. Finite-lived intangible assets are amortized for financial reporting purposes using the straight-line method over the estimated useful lives of the assets ranging from five to 20 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1, or when events or changes in circumstances indicate that indefinite-lived intangible assets might be impaired. |
Equity Method Investments | Investments in Other Entities. In the normal course of business, the Company enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by the Company in business entities, including general or limited partnerships, contractual ventures, or other forms of equity participation. The Company determines whether such investments involve a variable interest entity (“VIE”) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if the Company is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When the Company is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a noncontrolling interest. The Company generally accounts for investments it makes in VIEs in which it has determined that it does not have a controlling financial interest but has significant influence over and holds at least a 20% ownership interest using the equity method. Any such investment not meeting the parameters to be accounted under the equity method would be accounted for using the cost method unless the investment had a readily determinable fair value, at which it would then be reported. If an entity fails to meet the characteristics of a VIE, management then evaluates such entity under the voting model. Under the voting model, management consolidates the entity if they determine that the Company, directly or indirectly, has greater than 50% of the voting shares and determines that other equity holders do not have substantive participating rights. |
Commitments and Contingencies | Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Such accruals are adjusted as further information develops or circumstances change. The Company had no material loss contingency liabilities at June 30, 2018 related to commitments and contingencies. |
Income Taxes | Income Taxes. Deferred income tax assets and liabilities are determined based on the differences between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount more likely than not to be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in facts and circumstances. For example, adjustments could result from significant amendments to existing tax law and the issuance of regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes that its estimates for uncertain tax positions are appropriate and sufficient to pay assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
Revenue Recognition | Revenue Recognition. The Company recognizes revenues for product shipments when persuasive evidence of a sales arrangement exists, the product has been shipped or delivered, the sale price is fixed or determinable and collectability is reasonably assured. Title and risk of loss passes from the Company to its customer at the time of shipment in most cases with the exception of certain customers. For these customers, title does not pass and revenue is not recognized until the customer has received the product at its physical location. The Company’s revenue recognition policy is consistently applied across the Company’s segments, product lines and geographical locations. Further for the periods covered herein, we did not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges. Our distributors and agents are not granted price protection. Our distributors and agents, which comprise less than 10% of consolidated revenues, have no additional product return rights beyond the right to return defective products covered by our warranty policy. Revenues generated from transactions other than product shipments are contract related and have historically accounted for approximately 1% of consolidated revenues. We believe our revenue recognition practices have adequately considered the requirements under U.S. GAAP. |
Shipping and Handling Costs | Shipping and Handling Costs. Shipping and handling costs billed to customers are included in revenues. Shipping and handling costs incurred by the Company are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. Total shipping and handling revenue and costs included in revenues and in selling, general and administrative expenses were not significant for the fiscal years ended June 30, 2018, 2017 and 2016. |
Research and Development | Research and Development. Internal research and development costs and costs not related to customer and government funded research and development contracts are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation. Share-based compensation arrangements require the recognition of the grant-date fair value of stock compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income. Accumulated other comprehensive income is a measure of all changes in shareholders’ equity that result from transactions and other economic events in the period other than transactions with owners. Accumulated other comprehensive (loss) income is a component of shareholders’ equity and consists of accumulated foreign currency translations adjustments and pension adjustments. |
Fair Value Measurements | Fair Value Measurements. The Company applies fair value accounting for all financial assets and liabilities that are required to be recognized or disclosed at fair value in the financial statements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact, and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. |
Operating Leases | Operating The Company classifies operating leases in accordance with the provisions of lease accounting. Rent expense under noncancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess straight-line rent expense over scheduled payments is recorded as a deferred liability. The current portion of unamortized deferred lease costs is included in other accrued liabilities and the long-term portion is included in other liabilities in the Consolidated Balance Sheets. |
Capital Leases | Capital The Company accounts for capital leases at the lesser of the estimated fair market value of the leased property or the net present value of the aggregate future minimum lease payments. The current and long-term portion of the capital lease obligation is recorded in Other accrued liabilities and other liabilities, respectively, in the Consolidated Balance Sheet. Capital lease assets are included in property, plant & equipment and are generally depreciated over the term of the lease. Interest expense on capital leases are included in interest expense in the Consolidated Statements of Earnings. |
Recently Issued Financial Accounting Standards | Recently Issued Financial Accounting Standards Adopted Pronouncements In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. The adoption of this standard resulted in (decreases) increases to cost of goods sold of ($0.9) million, ($0.0) million, $0.6 million, (decreases) increases to internal research and development of ($0.4) million, ($0.0) million, $0.2 million, (decreases) increases to selling, general and administrative of ($0.2) million, ($0.0) million and $0.1 million and increases (decreases) to other income (expense), net of $1.5 million, $0.0 million and ($0.9) million for each of the years ended June 30, 2018, 2017 and 2016, respectively. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. This standard removes the second step of the goodwill impairment test, where a determination of the fair value of individual assets and liabilities of a reporting unit were needed to measure the goodwill impairment. Under this updated standard, goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has adopted this standard for any impairment test that is performed after July 1, 2017 as permitted under the standard. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, and classification in the statement of cash flows. Under this ASU, excess tax benefits or deficiencies are recognized in income tax expense in the Consolidated Statement of Earnings. Upon adoption of this ASU, the Company had a valuation allowance for its U.S. deferred tax assets and did not recognize any tax benefit. Had the Company not had a valuation allowance, the Company would have recognized a tax benefit of $2.4 million. The impact to the Company’s dilutive shares under this new standard was immaterial. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This update simplifies the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. This update eliminates the requirement to retrospectively apply the equity method in previous periods when an investor obtains significant influence over an investee. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Revenue Recognition Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09: Revenue from Contracts with Customers (Topic 606), that outlines a five-step revenue recognition model based on the principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This new standard became effective for the Company on July 1, 2018, and will be adopted using the modified retrospective transition method. Based on review and analysis of our contracts, the standard primarily impacts our II-VI Performance Product segment, which has long-term production contracts with customers that sell to the U.S. Government. Prior to adoption of the new standard, revenue was generally recognized for these contracts at a point-in-time as units were shipped, while under the new standard, revenue will be recognized over time, principally under the units-of-delivery method which faithfully depicts the transfer of control to the customers. This change will result in an immaterial change in revenue for these contracts and no transition adjustment is anticipated for July 1, 2018. We have updated the accounting policies affected by this standard, redesigned our related internal controls over financial reporting and are expanding the disclosures to be included in our first quarter 2019 Condensed Consolidated Financial Statements to meet the new requirements. Other Pronouncements Currently Under Evaluation In June 2018, the FASB issued ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting”, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The standard will be effective for the Company’s 2020 fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The standard will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. Early adoption is permitted. The standard will be effective for the Company’s 2019 fiscal year. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This update changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. Early adoption is permitted. The standard will be effective for the Company’s 2019 fiscal year. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update requires that when intra-entity asset transfers occur, the entity must recognize tax effects in the period in which the transfer occurs. The standard will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The guidance clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flow. The update will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The adoption of the ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update is intended to provide financial statement users with more decision-useful information about expected credit losses and other commitments to extend credit held by the reporting entity. The standard replaces the incurred loss impairment methodology in current GAAP with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The update will be effective for the Company’s 2021 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard will become effective for the Company’s fiscal year 2020, which begins on July 1, 2019. The Company will adopt the new guidance utilizing the modified retrospective transition method. We have reviewed the requirements of this standard and have formulated a plan for implementation. We are currently working on accumulating a complete population of leases from all of our locations and have selected a software repository to track all of our lease agreements and to assist in the reporting and disclosure requirements required by the standard. We will continue to assess and disclose the impact that this new guidance will have on our consolidated financial statements, disclosures and related controls, when known. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
II-VI Compound Semiconductor Ltd (Kaiam Laser Limited, Inc) | |
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 79 Inventories 4,559 Prepaid and other assets 1,246 Property, plant & equipment 63,899 Intangible assets 4,046 Goodwill 18,956 Total assets acquired $ 92,785 Liabilities Accounts payable $ 751 Other accrued liabilities 2,486 Deferred tax liabilities 10,555 Total liabilities assumed 13,792 Net assets acquired $ 78,993 |
Integrated Photonics, Inc | |
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 2,083 Inventories 3,968 Prepaid and other assets 322 Property, plant & equipment 11,235 Intangible assets 23,554 Goodwill 17,514 Total assets acquired $ 58,676 Liabilities Accounts payable $ 847 Other accrued liabilities 1,032 Long-term debt assumed 3,834 Deferred tax liabilities 9,802 Total liabilities assumed 15,515 Net assets acquired $ 43,161 |
Purchase Price at the Date of Acquisition | The following table presents the final purchase price at the date of acquisition ($000): Net cash paid at acquisition $ 40,098 Working capital adjustment 848 Fair value of cash earnout arrangement 2,215 Purchase price $ 43,161 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Nonconsolidated Investment | |
Schedule of Equity in Nonconsolidated Investment | The following table summarizes the Company's equity in this nonconsolidated investment: Interest Ownership % as of Equity as of Location Type June 30, 2018 June 30, 2018 ($000) USA Equity Investment 93.8% $ 56,331 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows: June 30, 2018 2017 ($000) Raw materials $ 97,502 $ 78,979 Work in progress 83,002 61,679 Finished goods 67,764 63,037 $ 248,268 $ 203,695 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property Plant & Equipment | Property, plant & equipment consist of the following: June 30, 2018 2017 ($000) Land and land improvements $ 9,072 $ 5,667 Buildings and improvements 216,507 144,293 Machinery and equipment 633,934 492,042 Construction in progress 88,350 88,458 947,863 730,460 Less accumulated depreciation (422,973 ) (362,732 ) $ 524,890 $ 367,728 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows ($000): Year Ended June 30, 2018 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 79,527 $ 108,544 $ 62,271 $ 250,342 Goodwill acquired 18,956 - - 18,956 Goodwill adjustment for prior year acquisition - IPI - 407 - 407 Foreign currency translation 254 719 - 973 Balance-end of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 Year Ended June 30, 2017 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 84,105 $ 96,760 $ 52,890 $ 233,755 Goodwill acquired - 17,107 - 17,107 Segment realignment (4,653 ) (4,728 ) 9,381 - Foreign currency translation 75 (595 ) - (520 ) Balance-end of period $ 79,527 $ 108,544 $ 62,271 $ 250,342 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill | The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2018 and 2017 were as follows ($000): June 30, 2018 June 30, 2017 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 66,812 $ (32,979 ) $ 33,833 $ 65,438 $ (27,313 ) $ 38,125 Trade Names 15,882 (1,471 ) 14,411 15,806 (1,340 ) 14,466 Customer Lists 127,603 (50,792 ) 76,811 123,058 (41,740 ) 81,318 Other 1,573 (1,559 ) 14 1,571 (1,523 ) 48 Total $ 211,870 $ (86,801 ) $ 125,069 $ 205,873 $ (71,916 ) $ 133,957 |
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years | The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000): Year Ending June 30, 2019 $ 12,400 2020 14,000 2021 12,600 2022 10,900 2023 10,700 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of debt were as follows ($000): June 30, 2018 2017 0.25% Convertible senior notes $ 345,000 $ - Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount (56,409 ) - Term loan, interest at LIBOR, as defined, plus 1.75% and 1.50%, respectively 65,000 85,000 Line of credit, interest at LIBOR, as defined, plus 1.75% and 1.50%, respectively 80,000 252,000 Credit facility unamortized debt issuance costs (1,126 ) (1,491 ) Yen denominated line of credit, interest at LIBOR, as defined, plus 1.75% and 0.625%, respectively 2,714 2,679 Note payable assumed in IPI acquisition 3,834 3,834 Total debt 439,013 342,022 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 419,013 $ 322,022 |
Summary of Total Interest Expense Recognized | The following table sets forth total interest expense recognized related to the Notes for the fiscal year ended June 30, 2018 (representing an effective interest rate of 4.5%): Year ended June 30, 2018 0.25% contractual coupon $ 731 Amortization of debt discount and debt issuance costs including initial purchaser discount 10,058 Interest expense $ 10,789 |
Remaining Annual Principal Payments of Credit Facilities and Notes Payable | Remaining annual principal payments under the Company’s existing credit facilities and notes payable as of June 30, 2018 were as follows ($000): U.S. Dollar Term Yen Line Line of Note Convertibles Period Loan of Credit Credit Payable Notes Total June 30, 2019 $ 20,000 $ - $ - $ - $ - $ 20,000 June 30, 2020 20,000 - - 3,834 - $ 23,834 June 30, 2021 20,000 2,714 - - - $ 22,714 June 30, 2022 5,000 - 80,000 - - $ 85,000 June 30, 2023 - - - - 345,000 $ 345,000 Total $ 65,000 $ 2,714 $ 80,000 $ 3,834 $ 345,000 $ 496,548 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings (Losses) Before Income Taxes | The components of earnings (losses) before income taxes were as follows: Year Ended June 30, 2018 2017 2016 ($000) U.S. loss $ (15,207 ) $ (6,944 ) $ (5,809 ) Non-U.S. income 137,401 125,732 95,764 Earnings before income taxes $ 122,194 $ 118,788 $ 89,955 |
Components of Income Tax Expense | The components of income tax expense were as follows: Year Ended June 30, 2018 2017 2016 ($000) Current: Federal $ 699 $ 2,133 $ 3,704 State 401 253 5 Foreign 32,147 22,312 19,783 Total Current $ 33,247 $ 24,698 $ 23,492 Deferred: Federal $ (3,064 ) $ (6,963 ) $ 2,759 State 1,615 (1,251 ) 1,302 Foreign 2,394 7,030 (3,084 ) Total Deferred $ 945 $ (1,184 ) $ 977 Total Income Tax Expense $ 34,192 $ 23,514 $ 24,469 |
Schedule of Principal Items Comprising Deferred Income Taxes | Principal items comprising deferred income taxes were as follows: June 30, 2018 2017 ($000) Deferred income tax assets Inventory capitalization $ 5,267 $ 6,338 Non-deductible accruals 1,125 1,705 Accrued employee benefits 7,614 9,738 Net-operating loss and credit carryforwards 48,738 53,048 Share-based compensation expense 7,925 12,386 Other 3,242 1,761 Valuation allowances (21,797 ) (42,562 ) Total deferred income tax assets $ 52,114 $ 42,414 Deferred income tax liabilities Tax over book accumulated depreciation $ (24,174 ) $ (7,803 ) Intangible assets (24,649 ) (38,108 ) Tax on unremitted earnings (13,090 ) (6,210 ) Convertible debt (11,376 ) - Other (4,020 ) (2,615 ) Total deferred income tax liabilities $ (77,309 ) $ (54,736 ) Net deferred income taxes $ (25,195 ) $ (12,322 ) |
Schedule of Reconciliation of Income Tax Expense at Statutory U.S. Federal Rate to Reported Income Tax Expense | The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense is as follows: Year Ended June 30, 2018 % 2017 % 2016 % ($000) Taxes at statutory rate $ 34,284 28 $ 41,576 35 $ 31,484 35 Increase (decrease) in taxes resulting from: State income taxes-net of federal benefit 1,426 1 (641 ) - 864 1 Taxes on non U.S. earnings (16,058 ) (13 ) (12,907 ) (11 ) (13,860 ) (15 ) Valuation allowance (6,008 ) (5 ) (806 ) (1 ) 8,464 9 Research and manufacturing incentive deductions and credits (7,024 ) (6 ) (5,681 ) (5 ) (4,374 ) (5 ) Stock compensation (4,103 ) (3 ) 1,770 2 702 1 Repatriation tax 36,777 30 - - - - Impact of U.S. tax rate change on deferred balances (4,209 ) (3 ) - - - - Other (893 ) (1 ) 203 - 1,189 1 $ 34,192 28 $ 23,514 20 $ 24,469 27 |
Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards | The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2018: Type Amount Expiration Date ($000) Tax credit carryforwards: Federal research and development credits $ 13,913 June 2019-June 2038 Foreign tax credits 251 June 2024-June 2028 State tax credits 5,594 June 2019-June 2038 Operating loss carryforwards: Loss carryforwards - federal $ 68,661 June 2020-June 2038 Loss carryforwards - state 47,756 June 2019-June 2038 Loss carryforwards - foreign 16,347 June 2019-June 2028 |
Schedule of Changes in Liability for Unrecognized Tax Benefits | Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2018, 2017 and 2016 were as follows: 2018 2017 2016 ($000) Beginning balance $ 7,577 $ 5,559 $ 4,022 Increases in current year tax positions 2,536 895 2,146 Increases in prior year tax positions 224 2,605 190 Decreases in prior year tax positions (9 ) - (67 ) Settlements - (1,143 ) - Expiration of statute of limitations (436 ) (339 ) (732 ) Ending balance $ 9,892 $ 7,577 $ 5,559 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The following table sets forth the computation of earnings per share for the periods indicated. Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share has been computed using the weighted average number of common shares outstanding during the period plus dilutive potential shares of common stock from (1) stock options, performance and restricted shares (under the treasury stock method) and (2) convertible debt (under the If-Converted method) outstanding during the period. The Company’s convertible debt calculated under the If-Converted method was antidilutive for the fiscal year 2018 and was excluded from the calculation of earnings per share. Year Ended June 30, 2018 2017 2016 ($000 except per share) Net earnings $ 88,002 $ 95,274 $ 65,486 Divided by: Weighted average shares 62,499 62,576 61,366 Basic earnings per common share $ 1.41 $ 1.52 $ 1.07 Net earnings $ 88,002 $ 95,274 $ 65,486 Divided by: Weighted average shares 62,499 62,576 61,366 Dilutive effect of common stock equivalents 2,634 1,931 1,543 Diluted weighted average common shares 65,133 64,507 62,909 Diluted earnings per common share $ 1.35 $ 1.48 $ 1.04 |
Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share | The following table presents potential shares of common stock excluded from the calculation of diluted net income per share, as their effect would have been antidilutive ($000): Year Ended June 30, 2018 2017 2016 Stock options and restricted shares 135 140 153 0.25% Convertible Senior Notes due 2022 7,331 - - Total anti-dilutive shares 7,466 140 153 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Operating Lease Future Rental Commitments | Future rental commitments applicable to the operating leases at June 30, 2018 are as follows: Year Ending June 30, ($000) 2019 $ 20,100 2020 19,100 2021 14,500 2022 11,700 2023 9,800 Thereafter 52,700 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Expense by Award Type | Share-based compensation expense for the fiscal years ended June 30, 2018, 2017 and 2016 is as follows ($000): Year Ended June 30, 2018 2017 2016 Stock Options and Cash-Based Stock Appreciation Rights $ 6,605 $ 5,611 $ 4,309 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 7,850 6,799 4,401 Performance Share Awards and Cash-Based Performance Share Unit Awards 5,221 3,626 2,196 $ 19,676 $ 16,036 $ 10,906 |
Schedule of Fair Value Assumptions under Stock Option Plan | The Company utilized the Black-Scholes valuation model for estimating the fair value of stock option expense. During the fiscal years ended June 30, 2018, 2017 and 2016, the weighted-average fair value of options granted under the stock option plan was $14.23, $8.88 and $7.35, respectively, per option using the following assumptions: Year Ended June 30, 2018 2017 2016 Risk-free interest rate 2.00 % 1.43 % 1.68 % Expected volatility 37 % 37 % 38 % Expected life of options 6.43 years 6.28 years 6.43 years Dividend yield None None None |
Stock Option and Cash-Based Stock Appreciation Rights Activity | Stock option and cash-based stock appreciation rights activity during the fiscal year ended June 30, 2018 was as follows: Stock Options Cash-Based Stock Appreciation Rights Number of Weighted Average Number of Weighted Average Shares Exercise Price Rights Exercise Price Outstanding - July 1, 2017 4,080,915 $ 18.15 214,467 $ 19.17 Granted 474,270 $ 35.54 47,800 $ 35.46 Exercised (573,004 ) $ 18.27 (30,467 ) $ 18.44 Forfeited and Expired (53,473 ) $ 27.67 (26,352 ) $ 23.14 Outstanding - June 30, 2018 3,928,708 $ 20.07 205,448 $ 22.56 Exercisable - June 30, 2018 2,288,266 $ 17.24 59,766 $ 18.47 |
Share-Based Compensation Outstanding and Exercisable Options | Outstanding and exercisable stock options at June 30, 2018 were as follows: Stock Options and Cash-Based Stock Stock Options and Cash-Based Stock Appreciation Rights Outstanding Appreciation Rights Exercisable Weighted Weighted Weighted Weighted Number of Average Remaining Average Number of Average Remaining Average Range of Shares or Contractual Term Exercise Shares or Contractual Term Exercise Exercise Prices Rights (Years) Price Rights (Years) Price $10.04 - $15.38 902,022 4.21 $ 13.25 667,878 3.54 $ 12.99 $15.47 - $23.50 2,647,015 5.58 $ 19.29 1,657,129 4.40 $ 18.80 $25.91 - $39.65 569,559 9.00 $ 34.79 23,025 7.14 $ 31.23 $41.50 - $45.24 15,560 9.55 $ 42.87 - - $ - 4,134,156 5.77 $ 20.20 2,348,032 $ 4.18 $ 17.27 |
Restricted Share and Cash-Based Restricted Share Unit Activity | Restricted share and cash-based restricted share unit activity during the fiscal year ended June 30, 2018, was as follows: Restricted Share Awards Cash-Based Restricted Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2017 811,833 $ 19.45 140,927 $ 19.12 Granted 166,348 $ 35.58 46,012 $ 35.43 Vested (370,571 ) $ 18.15 (55,189 ) $ 17.45 Forfeited (12,091 ) $ 28.71 (14,424 ) $ 24.97 Nonvested - June 30, 2018 595,519 $ 24.58 117,326 $ 25.57 |
Performance Share and Cash-Based Performance Share Unit Award Activity | Performance share and cash-based performance share unit award activity relating to the Plan during the year ended June 30, 2018, was as follows: Performance Share Awards Cash-Based Performance Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2017 377,710 $ 19.52 17,152 $ 19.37 Granted 99,168 $ 35.25 9,120 $ 35.25 Vested (70,210 ) $ 14.84 (2,221 ) $ 15.42 Forfeited (24,398 ) $ 17.84 (6,772 ) $ 25.88 Nonvested - June 30, 2018 382,270 $ 24.57 17,279 $ 25.71 |
Segment and Geographic Report_2
Segment and Geographic Reporting (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Financial Information of Company's Operation by Segment | The following tables summarize selected financial information of the Company’s operations by segment: II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2018 Revenues $ 405,940 $ 486,485 $ 266,369 $ - $ 1,158,794 Inter-segment revenues 34,590 11,180 26,262 (72,032 ) - Operating income 40,119 63,152 33,492 - 136,763 Interest expense - - - - (18,352 ) Other income, net - - - - 3,783 Income taxes - - - - (34,192 ) Net earnings - - - - 88,002 Depreciation and amortization 38,004 23,242 19,524 - 80,770 Expenditures for property, plant & equipment 80,776 36,122 44,425 - 161,323 Segment assets 740,020 554,574 467,067 - 1,761,661 Equity investments - - 69,215 - 69,215 Goodwill 98,737 109,670 62,271 - 270,678 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2017 Revenues $ 317,495 $ 440,361 $ 214,190 $ - $ 972,046 Inter-segment revenues 33,669 8,003 10,189 (51,861 ) - Operating income 27,459 66,462 21,635 - 115,556 Interest expense - - - - (6,809 ) Other income, net - - - - 10,041 Income taxes - - - - (23,514 ) Net earnings - - - - 95,274 Depreciation and amortization 24,684 21,612 17,341 - 63,637 Expenditures for property, plant & equipment 81,346 28,811 32,788 - 142,945 Segment assets 572,314 535,418 369,565 - 1,477,297 Equity investment - - 11,727 - 11,727 Goodwill 79,527 108,544 62,271 - 250,342 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2016 Revenues $ 289,434 $ 339,447 $ 198,335 $ - $ 827,216 Inter-segment revenues 23,685 10,569 7,274 (41,528 ) - Operating income 33,398 39,738 17,780 - 90,916 Interest expense - - - - (3,081 ) Other income, net - - - - 2,120 Income taxes - - - - (24,469 ) Net earnings - - - - 65,486 Depreciation and amortization 16,822 20,255 19,586 - 56,663 Expenditures for property, plant & equipment 24,885 21,831 11,454 - 58,170 |
Geographic Information for Revenues from Country of Origin (Shipped from), and Long-Lived Assets from Country of Origin | Geographic information for revenues from the country of origin (shipped from), and long-lived assets from the country of origin, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows: Revenues Year Ended June 30, 2018 2017 2016 ($000) United States $ 373,735 $ 294,200 $ 266,347 Non-United States China 253,672 208,595 172,292 Hong Kong 186,978 190,702 140,821 Germany 132,161 88,304 72,070 Japan 89,153 76,212 57,287 Switzerland 49,557 50,497 54,760 Vietnam 26,898 22,497 24,267 Italy 11,458 10,791 10,160 Korea 9,757 6,584 3,887 United Kingdom 9,359 8,473 8,154 Singapore 5,941 3,913 3,039 Belgium 4,511 7,503 6,026 Philippines 3,909 3,057 8,106 Taiwan 1,705 718 - Total Non-United States 785,059 677,846 560,869 $ 1,158,794 $ 972,046 $ 827,216 Long-Lived Assets June 30, 2018 2017 2016 ($000) United States $ 309,062 $ 240,029 $ 137,521 Non-United States China 81,175 62,024 51,824 United Kingdom 65,357 396 203 Switzerland 37,155 36,795 38,202 Germany 14,876 15,323 15,162 Vietnam 10,042 8,272 8,895 Philippines 6,628 6,115 4,399 Hong Kong 2,818 1,914 1,765 Other 598 704 943 Total Non-United States 218,649 131,543 121,393 $ 527,711 $ 371,572 $ 258,914 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Summary of Fair Value and Carrying Value of Convertible Notes | The fair value and carrying value of the convertible notes were as follows at June 30, 2018 ($000): Fair Value Carrying Value Convertible notes $ 388,125 $ 288,591 |
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis | The following tables provide a summary by level of the fair value of financial instruments that are measured on a recurring basis as of June 30, 2018 and 2017 ($000): Fair Value Measurements at June 30, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 121 $ - $ 121 $ - Liabilities: Contingent earnout arrangements $ 5,405 $ - $ - $ 5,405 Net put option $ 2,024 $ - $ - $ 2,024 Fair Value Measurements at June 30, 2017 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2017 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 191 $ - $ 191 $ - Liabilities: Contingent earnout arrangements $ 5,795 $ - $ - $ 5,795 |
EpiWorks | |
Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangements Related to Acquisition | The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s level 3 contingent earnout arrangements related to the acquisitions of II-VI EpiWorks and IPI and the net put option relating to the purchase of the equity investment in November 2017. ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2017 $ 5,795 Activity: Purchase price adjustment - IPI (35 ) Net put option 2,233 Changes in fair value recorded in other expense (income), net (564 ) Balance at June 30, 2018 $ 7,429 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations and Plan Assets | The changes in the funded status of the Swiss Plan during the fiscal years ended June 30, 2018 and 2017 were as follows: Year Ended June 30, 2018 2017 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 59,518 $ 54,094 Service cost 3,766 3,689 Interest cost 424 163 Benefits accumulated, net of benefits paid 1,474 1,743 Plan amendments (Reduction of the conversion rate 6.8% to 6.2%) (4,068 ) - Actuarial (gain) loss on obligation 1,606 (2,777 ) Participant contributions 1,415 1,262 Currency translation adjustment (1,581 ) 1,344 Projected benefit obligation, end of period $ 62,554 $ 59,518 Change in plan assets: Plan assets at fair value, beginning of period 42,990 35,857 Actual return on plan assets 1,566 805 Employer contributions 2,731 2,432 Participant contributions 1,415 1,262 Benefits accumulated, net of benefits paid 1,474 1,743 Currency translation adjustment (1,142 ) 891 Plan assets at fair value, end of period $ 49,034 $ 42,990 Amounts recognized in consolidated balance sheets: Other non-current assets: Deferred tax asset $ 2,859 $ 3,496 Other non-current liabilities: Underfunded pension liability $ 13,520 16,528 Amounts recognized in accumulated other comprehensive income, net of tax: Pension adjustment $ 2,846 $ 2,514 Accumulated benefit obligation, end of period $ 59,800 $ 56,457 |
Schedule of Net Periodic Pension Costs | Net periodic pension cost associated with the Swiss Plan included the following components: Year Ended June 30, 2018 2017 2016 Service cost $ 3,766 $ 3,689 $ 2,680 Interest cost 424 163 434 Expected return on plan assets 849 (742 ) (1,097 ) Net actuarial loss and prior service credit 203 594 (234 ) Net periodic pension cost $ 5,242 $ 3,704 $ 1,783 |
Schedule of Projected and Accumulated Benefit Obligations Rates | The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2018 and 2017 using the following assumptions: June 30, 2018 2017 Discount rate 0.9 % 0.8 % Salary increase rate 2.0 % 2.0 % |
Schedule of Assumptions Used in Calculation of Net Periodic Pension Cost | The net periodic pension cost for the Swiss Plan was calculated during the fiscal years ended June 30 2018, 2017, and 2016 using the following assumptions: Year Ended June 30, 2018 2017 2016 Discount rate 0.8 % 0.3 % 1.1 % Salary increase rate 2.0 % 2.0 % 2.0 % Expected return on plan assets 2.0 % 2.0 % 2.0 % |
Schedule of Swiss Plan's Asset Allocation | The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2018, the Swiss Plan’s asset allocation was as follows (all of which are categorized as Level 2 in the fair value hierarchy): June 30, 2018 2017 Fixed income investments 12.0 % 10.0 % Equity investments 50.0 % 52.0 % Real estate 31.0 % 26.0 % Cash 4.0 % 9.0 % Other 3.0 % 3.0 % 100.0 % 100.0 % |
Schedule of Estimated Future Benefit Payments Under Swiss Plan | Estimated future benefit payments under the Swiss Plan are estimated to be as follows: Year Ending June 30, ($000) 2019 $ 5,100 2020 1,800 2021 2,700 2022 2,900 2023 3,200 Next five years 22,400 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Components of Other Accrued Liabilities | The components of other accrued liabilities were as follows: June 30, 2018 2017 ($000) Deferred revenue $ 3,384 $ 2,345 Warranty reserve 4,679 4,546 Earnout arrangements 5,405 3,930 Other accrued liabilities 29,511 18,235 $ 42,979 $ 29,056 |
Change in Carrying Value of Company's Warranty Reserve | The following table summarizes the change in the carrying value of the Company’s warranty reserve included in Other Accrued Liabilities as of and for the years ended June 30, 2018 and 2017. Year Ended June 30, 2018 2017 ($000) Balance-Beginning of Year $ 4,546 $ 3,908 Settlements during the period (3,688 ) (4,212 ) Additional warranty liability recorded 3,821 4,850 Balance-End of Year $ 4,679 $ 4,546 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Schedule of Future Commitments | Total future commitments are as follows: Year Ending June 30, ($000) 2019 $ 114,307 2020 3,477 2021 567 2022 - 2023 - |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax | The changes in accumulated other comprehensive income (“AOCI”) by component, net of tax, for the years ended June 30, 2018, 2017, and 2016 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Income AOCI - June 30, 2015 $ 9,466 $ (801 ) $ 8,665 Other comprehensive income (loss) before reclassifications (15,651 ) (6,805 ) (22,456 ) Amounts reclassified from AOCI - (226 ) (226 ) Net current-period other comprehensive income (15,651 ) (7,031 ) (22,682 ) AOCI - June 30, 2016 (6,185 ) (7,832 ) (14,017 ) Other comprehensive income (loss) before reclassifications (2,275 ) 1,920 (355 ) Amounts reclassified from AOCI - 594 594 Net current-period other comprehensive income (2,275 ) 2,514 239 AOCI - June 30, 2017 $ (8,460 ) $ (5,318 ) $ (13,778 ) Other comprehensive income (loss) before reclassifications 7,152 2,643 9,795 Amounts reclassified from AOCI - 203 203 Net current-period other comprehensive income 7,152 2,846 9,998 AOCI - June 30, 2018 $ (1,308 ) $ (2,472 ) $ (3,780 ) |
Capital Lease (Tables)
Capital Lease (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease | The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): Fiscal Year Ending June 30, Amount 2019 $ 2,292 2020 2,355 2021 2,419 2022 2,486 2023 2,554 Thereafter 24,740 Total minimum lease payments $ 36,846 Less amount representing interest 11,906 Present value of capitalized payments $ 24,940 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Fiscal Year 2018 September 30, December 31, March 31, June 30, Quarter Ended 2017 2017 2018 2018 ($000) 2018 Net revenues $ 261,503 $ 281,470 $ 294,746 $ 321,075 Cost of goods sold 155,530 172,075 176,521 192,465 Internal research and development 25,575 27,779 30,625 32,896 Selling, general and administrative 50,624 49,130 53,121 55,690 Interest expense 3,645 4,644 5,014 5,049 Other expense (income) - net (770 ) (2,026 ) (1,755 ) 768 Earnings before income taxes 26,899 29,868 31,220 34,207 Income taxes 5,758 20,272 1,122 7,040 Net Earnings $ 21,141 $ 9,596 $ 30,098 $ 27,167 Basic earnings per share $ 0.34 $ 0.15 $ 0.48 $ 0.44 Diluted earnings per share $ 0.32 $ 0.15 $ 0.45 $ 0.42 Fiscal Year 2017 September 30, December 31, March 31, June 30, Quarter Ended 2016 2016 2017 2017 ($000) 2017 Net revenues $ 221,520 $ 231,822 $ 244,987 $ 273,717 Cost of goods sold 134,107 137,296 147,479 164,802 Internal research and development 21,908 23,526 25,462 25,910 Selling, general and administrative 42,119 43,440 43,333 47,108 Interest expense 1,246 1,365 1,936 2,262 Other expense (income) - net (1,707 ) (5,621 ) (2,490 ) (223 ) Earnings before income taxes 23,847 31,816 29,267 33,858 Income taxes 7,553 7,913 6,837 1,211 Net Earnings $ 16,294 $ 23,903 $ 22,430 $ 32,647 Basic earnings per share $ 0.26 $ 0.38 $ 0.36 $ 0.52 Diluted earnings per share $ 0.26 $ 0.37 $ 0.35 $ 0.50 |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Nov. 30, 2017 | |
Significant Accounting Policies [Line Items] | ||||
Inventory reserve amount | $ 22,500,000 | $ 18,500,000 | ||
Property, plant and equipment estimated useful lives, years | 15 years | |||
Variable interest entity, ownership percentage | 25.00% | |||
Equity interest acquired | 93.80% | 93.80% | ||
Loss contingency liability | $ 0 | |||
Maximum percentage of total revenues represented by distributors and agents that are not granted price protection | 10.00% | |||
Percentage of contract related revenues | 1.00% | |||
ASU 2017-07 | ||||
Significant Accounting Policies [Line Items] | ||||
Increase (decrease) to cost of goods sold | $ (900,000) | 0 | $ 600,000 | |
Increase (decrease) to internal research and development expense | (400,000) | 0 | 200,000 | |
Increase (decrease) to selling, general and administrative expense | (200,000) | 0 | 100,000 | |
Increase (decrease) to other income (expense) net | 1,500,000 | $ 0 | $ (900,000) | |
ASU 2016-09 | ||||
Significant Accounting Policies [Line Items] | ||||
Tax Benefit Would Have Recognized In Absence Of Valuation Allowance | $ 2,400 | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible assets useful life, years | 5 years | |||
Variable interest entity, ownership percentage | 20.00% | |||
Equity interest acquired | 50.00% | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible assets useful life, years | 20 years | |||
Building improvements and land improvements | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful lives, years | 10 years | |||
Building improvements and land improvements | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful lives, years | 20 years | |||
Machinery and Equipment | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful lives, years | 3 years | |||
Machinery and Equipment | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment estimated useful lives, years | 20 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | |||||||
Net cash paid at acquisition | $ 80,503 | $ 40,015 | $ 122,157 | ||||
Purchase price adjustment | $ (500) | ||||||
Goodwill | $ 250,342 | 270,678 | 250,342 | 233,755 | |||
II-VI Laser Solutions Segment | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 79,527 | 98,737 | 79,527 | $ 84,105 | |||
II-VI Compound Semiconductor Ltd (Kaiam Laser Limited, Inc) | |||||||
Business Acquisition [Line Items] | |||||||
Net cash paid at acquisition | 79,500 | ||||||
Goodwill | 18,956 | ||||||
Business acquisition, transaction costs | 600 | ||||||
Business acquisition, revenue of acquired entity | 3,400 | ||||||
Business acquisition, (losses) earnings of acquired entity | (12,500) | ||||||
II-VI Compound Semiconductor Ltd (Kaiam Laser Limited, Inc) | II-VI Laser Solutions Segment | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 19,000 | ||||||
Integrated Photonics, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Net cash paid at acquisition | 40,098 | ||||||
Goodwill | 17,514 | 17,514 | |||||
Business acquisition, transaction costs | 300 | 300 | |||||
Business acquisition, revenue of acquired entity | 19,300 | 1,300 | |||||
Business acquisition, (losses) earnings of acquired entity | $ 3,800 | 100 | |||||
Payment of final amount for working capital adjustment | 800 | ||||||
Fair value of accounts receivable acquired | 2,100 | 2,100 | |||||
Fair value of accounts receivable gross contractual amount | 2,100 | 2,100 | |||||
Integrated Photonics, Inc | II-VI Photonics and II-VI Performance Products segments | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 17,500 | 17,500 | |||||
Scenario Forecast | CoAdna, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Net cash paid at acquisition | $ 85,000 | ||||||
Business acquisitions, contingent consideration | $ 85,000 | ||||||
Upon Achievement of Financial And Transitional Objectives Relating to Finance Information Technology And Human Resources | Integrated Photonics, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisitions, contingent consideration, current | 2,500 | 2,500 | |||||
Upon Achievement of Financial And Transitional Objectives Relating to Finance Information Technology And Human Resources | Integrated Photonics, Inc | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisitions, contingent consideration | $ 2,500 | $ 2,500 |
Allocation of Purchase Price of
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail)) - USD ($) $ in Thousands | Jun. 30, 2018 | Aug. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Assets | ||||
Goodwill | $ 270,678 | $ 250,342 | $ 233,755 | |
II-VI Compound Semiconductor Ltd (Kaiam Laser Limited, Inc) | ||||
Assets | ||||
Accounts receivable | $ 79 | |||
Inventories | 4,559 | |||
Prepaid and other assets | 1,246 | |||
Property, plant & equipment | 63,899 | |||
Intangible assets | 4,046 | |||
Goodwill | 18,956 | |||
Total assets acquired | 92,785 | |||
Liabilities | ||||
Accounts payable | 751 | |||
Other accrued liabilities | 2,486 | |||
Deferred tax liabilities | 10,555 | |||
Total liabilities assumed | 13,792 | |||
Net assets acquired | $ 78,993 | |||
Integrated Photonics, Inc | ||||
Assets | ||||
Accounts receivable | 2,083 | |||
Inventories | 3,968 | |||
Prepaid and other assets | 322 | |||
Property, plant & equipment | 11,235 | |||
Intangible assets | 23,554 | |||
Goodwill | 17,514 | |||
Total assets acquired | 58,676 | |||
Liabilities | ||||
Accounts payable | 847 | |||
Other accrued liabilities | 1,032 | |||
Long-term debt assumed | 3,834 | |||
Deferred tax liabilities | 9,802 | |||
Total liabilities assumed | 15,515 | |||
Net assets acquired | $ 43,161 |
Purchase Price at the Date of A
Purchase Price at the Date of Acquisition (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | |||||
Net cash paid at acquisition | $ 80,503 | $ 40,015 | $ 122,157 | ||
Working capital adjustment | $ 200 | ||||
Integrated Photonics, Inc | |||||
Business Acquisition [Line Items] | |||||
Net cash paid at acquisition | $ 40,098 | ||||
Working capital adjustment | 848 | ||||
Fair value of cash earnout arrangement | 2,215 | ||||
Purchase price | $ 43,161 |
Other Investments - Additional
Other Investments - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Equity interest, percentage | 93.80% | 93.80% | ||
Aggregate cost of equity method investments | $ 51,500,000 | |||
Working capital adjustment relating to acquisition | 200,000 | |||
Pro-rata share of earnings from equity method investment | $ 3,594,000 | $ 744,000 | $ 29,000 | |
Voting interest | 25.00% | |||
Equity Investment | $ 69,215,000 | 11,727,000 | ||
Purchase price description of minority interest under equity method | The purchase price is equal to the greater of: (a) (i) the product of the aggregate trailing 12-month revenues of the equity investment preceding the date of purchase, multiplied by (ii) a factor of 2.9 multiplied by (iii) a factor of 0.723, multiplied by (iv) the percentage interest owned by each minority equity holder and (b) $966,666. | |||
Minimum purchase price consideration of remaining minority interest under equity method | $ 966,666 | |||
Other Long-term Liabilities | ASC 815-10, Derivatives and Hedging | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method Investment, noncurrent liabilities | $ 2,200,000 | |||
Equity Investment | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity Investment | 56,300,000 | |||
Privately-held Company | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Pro-rata share of earnings from equity method investment | $ 2,400,000 | |||
Guangdong Fuxin Electronic Technology | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity interest, percentage | 20.20% | |||
Pro-rata share of earnings from equity method investment | $ 1,200,000 | 700,000 | 100,000 | |
Total carrying value of equity method investment | 12,900,000 | 11,700,000 | ||
Dividends from equity investment | $ 400,000 | $ 400,000 | $ 600,000 |
Schedule of Equity in Nonconsol
Schedule of Equity in Nonconsolidated Investment (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Nov. 30, 2017 | Jun. 30, 2017 |
Schedule Of Equity Method Investments [Line Items] | |||
Equity Investment, Ownership Percentage | 93.80% | 93.80% | |
Equity Investment | $ 69,215 | $ 11,727 | |
Equity Investment | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity Investment | $ 56,300 | ||
Nonconsolidated Investment | Equity Investment | USA | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity Investment, Ownership Percentage | 93.80% | ||
Equity Investment | $ 56,331 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 97,502 | $ 78,979 |
Work in progress | 83,002 | 61,679 |
Finished goods | 67,764 | 63,037 |
Inventories, Total | $ 248,268 | $ 203,695 |
Property Plant & Equipment (Det
Property Plant & Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 947,863 | $ 730,460 |
Less accumulated depreciation | (422,973) | (362,732) |
Property, Plant and Equipment, net | 524,890 | 367,728 |
Land and Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 9,072 | 5,667 |
Buildings and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 216,507 | 144,293 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 633,934 | 492,042 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 88,350 | $ 88,458 |
Property, Plant & Equipment - A
Property, Plant & Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 66,202 | $ 50,894 | $ 44,324 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Line Items] | ||
Balance-beginning of period | $ 250,342 | $ 233,755 |
Goodwill acquired | 18,956 | 17,107 |
Foreign currency translation | 973 | (520) |
Balance-end of period | 270,678 | 250,342 |
IPI | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 17,514 | |
Goodwill adjustment for prior year acquisition - IPI | 407 | |
Balance-end of period | 17,514 | |
II-VI Laser Solutions | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 79,527 | 84,105 |
Goodwill acquired | 18,956 | |
Segment realignment | (4,653) | |
Foreign currency translation | 254 | 75 |
Balance-end of period | 98,737 | 79,527 |
II-VI Photonics | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 108,544 | 96,760 |
Goodwill acquired | 17,107 | |
Segment realignment | (4,728) | |
Foreign currency translation | 719 | (595) |
Balance-end of period | 109,670 | 108,544 |
II-VI Photonics | IPI | ||
Goodwill [Line Items] | ||
Goodwill adjustment for prior year acquisition - IPI | 407 | |
II- VI Performance Products | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 62,271 | 52,890 |
Segment realignment | 9,381 | |
Balance-end of period | $ 62,271 | $ 62,271 |
Gross Carrying Amount and Accum
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 211,870 | $ 205,873 |
Accumulated Amortization | (86,801) | (71,916) |
Net Book Value | 125,069 | 133,957 |
Technology and Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 66,812 | 65,438 |
Accumulated Amortization | (32,979) | (27,313) |
Net Book Value | 33,833 | 38,125 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,882 | 15,806 |
Accumulated Amortization | (1,471) | (1,340) |
Net Book Value | 14,411 | 14,466 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 127,603 | 123,058 |
Accumulated Amortization | (50,792) | (41,740) |
Net Book Value | 76,811 | 81,318 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,573 | 1,571 |
Accumulated Amortization | (1,559) | (1,523) |
Net Book Value | $ 14 | $ 48 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization expense recorded on intangible assets | $ 14.6 | $ 12.7 | $ 12.3 |
Carrying amount of indefinite trade names acquired | $ 14.3 | ||
Minimum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 5 years | ||
Maximum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 20 years | ||
Technology and Patents | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Remaining amortization period of patents and customer lists, in months | 91 months | ||
Technology and Patents | II-VI Compound Semiconductors Ltd | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Identifiable intangibles assets recorded in connection with acquisitions | $ 0.4 | ||
Technology and Patents | Minimum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 60 months | ||
Technology and Patents | Maximum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 240 months | ||
Customer Lists | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Remaining amortization period of patents and customer lists, in months | 140 months | ||
Customer Lists | II-VI Compound Semiconductors Ltd | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Identifiable intangibles assets recorded in connection with acquisitions | $ 3.6 | ||
Customer Lists | Minimum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 60 months | ||
Customer Lists | Maximum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 240 months |
Estimated Amortization Expense
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,019 | $ 12,400 |
2,020 | 14,000 |
2,021 | 12,600 |
2,022 | 10,900 |
2,023 | $ 10,700 |
Components of Debt (Detail)
Components of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | $ 496,548 | |
Total debt | 439,013 | $ 342,022 |
Current portion of long-term debt | (20,000) | (20,000) |
Long-term debt, less current portion | 419,013 | 322,022 |
0.25% Convertible Senior Note Due 2022 | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 345,000 | |
Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount | (56,409) | |
Note payable | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 3,834 | |
Integrated Photonics, Inc | Note payable | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 3,834 | 3,834 |
Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 80,000 | 252,000 |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 65,000 | 85,000 |
Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 2,714 | 2,679 |
Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Credit facility unamortized debt issuance costs | $ (1,126) | $ (1,491) |
Components of Debt (Parenthetic
Components of Debt (Parenthetical) (Detail) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
0.25% Convertible Senior Note Due 2022 | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, interest rate | 0.25% | |
London Interbank Offered Rate (LIBOR) | Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.75% | 1.50% |
London Interbank Offered Rate (LIBOR) | Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.75% | 1.50% |
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.75% | 0.625% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Aug. 29, 2017USD ($) | Aug. 24, 2017USD ($) | Jul. 28, 2016USD ($) | Jun. 30, 2018USD ($)dJPY (¥) | Jun. 30, 2017USD ($)d$ / shares | Jun. 30, 2016USD ($) | Jun. 30, 2018JPY (¥) | Jun. 30, 2017JPY (¥) |
Line Of Credit Facility [Line Items] | ||||||||
Net proceeds after deducting initial purchasers discount and estimated offering expenses | $ 345,000,000 | |||||||
Proceeds from notes used to repurchase common stock | 49,875,000 | $ 6,284,000 | ||||||
Repayments of revolving credit facility | 292,000,000 | $ 25,000,000 | 65,700,000 | |||||
Payment of debt issuance costs | 10,061,000 | $ 1,384,000 | ||||||
Offering costs attributable to equity component | $ 1,694,000 | |||||||
Weighted average interest rate of total borrowings | 1.30% | 2.20% | 1.30% | 2.20% | ||||
Total outstanding letters of credit | $ 400,000 | $ 1,300,000 | ||||||
Available credit under lines of credit | 246,400,000 | 73,500,000 | ||||||
Weighted average of total borrowings | 476,600,000 | 272,100,000 | ||||||
Credit facility, interest paid | 6,600,000 | 6,100,000 | 3,100,000 | |||||
Credit facility, commitment fees paid | 6,600,000 | 6,100,000 | 3,100,000 | |||||
Singapore Bank | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 600,000 | $ 600,000 | ||||||
Weighted average interest rate of total borrowings | 5.25% | 5.25% | 5.25% | 5.25% | ||||
Total outstanding letters of credit | $ 0 | $ 0 | ||||||
Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument maturity date | Jul. 27, 2021 | |||||||
Line of credit, maximum borrowing capacity | $ 325,000,000 | |||||||
Credit facility, term | 5 years | |||||||
Term Loans | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | |||||||
Term loan, quarterly principal Payment | $ 5,000,000 | |||||||
Term loan, maturity date | Jul. 27, 2021 | |||||||
Term loan, first quarterly principal payment commencement date | Oct. 1, 2016 | |||||||
Yen denominated line of credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 4,500,000 | ¥ 500,000,000 | ||||||
Debt instrument, month and year of maturity | 2020-08 | |||||||
Line of credit, outstanding | $ 2,700,000 | ¥ 300,000,000 | ¥ 300,000,000 | |||||
Letter Of Credit | Singapore Bank | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility | $ 300,000 | $ 200,000 | ||||||
London Interbank Offered Rate (LIBOR) | Term Loans | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.75% | 1.50% | ||||||
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.75% | 0.625% | ||||||
Prime Rate | Singapore Bank | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.00% | 1.00% | ||||||
Maximum | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Credit facility, optional additional borrowing amount | $ 100,000,000 | |||||||
Maximum | Base Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.25% | |||||||
Maximum | Euro Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 2.25% | |||||||
Maximum | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.75% | |||||||
Minimum | Base Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 0.00% | |||||||
Minimum | Euro Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.00% | |||||||
Minimum | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 0.625% | |||||||
0.25% Convertible Senior Note Due 2022 | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate | 0.25% | 0.25% | ||||||
Debt instrument maturity date | Sep. 1, 2022 | |||||||
Debt instrument maturity date description | The Notes mature on September 1, 2022, unless earlier repurchased by the Company or converted by holders in accordance with the terms of the Notes | |||||||
Debt instrument payment terms description | Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. | |||||||
Debt instrument frequency of periodic payment | semi-annually | |||||||
Debt instrument interest payable beginning date | Mar. 1, 2018 | |||||||
Effective interest rate | 4.50% | 4.50% | 4.50% | 4.50% | ||||
Debt instrument conversion, shares issued per $1,000 principal amount | 21.25 | |||||||
Debt instrument conversion, principal amount of each note converted | $ 1,000 | |||||||
Debt instrument conversion, conversion price per share | $ / shares | $ 47.06 | |||||||
Debt instrument conversion, If-converted value of notes | $ 318,500,000 | |||||||
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible into common stock | d | 20 | |||||||
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible into common stock | d | 30 | |||||||
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed in order for the notes to be convertible | 130.00% | |||||||
Number of consecutive business days immediately after any five consecutive trading day period during the note measurement period | ¥ | 5 | |||||||
Number of consecutive trading days before five consecutive business days during the note measurement period | d | 5 | |||||||
Offering costs attributable to debt component | $ 8,400,000 | |||||||
Offering costs attributable to equity component | 1,700,000 | |||||||
Unamortized discount | $ 49,300,000 | |||||||
Amortization period | 4 years | |||||||
0.25% Convertible Senior Note Due 2022 | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument conversion obligation trading price as percentage of product common stock closing sale price and conversion rate | 98.00% | |||||||
0.25% Convertible Senior Note Due 2022 | Initial Purchasers | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Aggregate principal amount | $ 300,000,000 | |||||||
Debt instrument, interest rate | 0.25% | |||||||
Sale of notes to initial purchasers settlement date | Aug. 29, 2017 | |||||||
Net proceeds after deducting initial purchasers discount and estimated offering expenses | $ 336,000,000 | |||||||
Proceeds from notes used to repurchase common stock | 49,900,000 | |||||||
Repayments of revolving credit facility | 252,000,000 | |||||||
Payment of debt issuance costs | $ 10,100,000 | |||||||
0.25% Convertible Senior Notes Over-Allotment Option | Initial Purchasers | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Aggregate principal amount | $ 45,000,000 | |||||||
Number of days option granted to purchase additional principal amount of notes | 30 days |
Summary of Total Interest Expen
Summary of Total Interest Expense Recognized (Detail) - 0.25% Convertible Senior Note Due 2022 $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
0.25% contractual coupon | $ 731 |
Amortization of debt discount and debt issuance costs including initial purchaser discount | 10,058 |
Interest expense | $ 10,789 |
Summary of Total Interest Exp_2
Summary of Total Interest Expense Recognized (Parenthetical) (Detail) | Jun. 30, 2018 |
0.25% Convertible Senior Note Due 2022 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 0.25% |
Remaining Annual Principal Paym
Remaining Annual Principal Payments of Credit Facilities and Notes Payable (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Line Of Credit Facility [Line Items] | ||
June 30, 2019 | $ 20,000 | |
June 30, 2020 | 23,834 | |
June 30, 2021 | 22,714 | |
June 30, 2022 | 85,000 | |
June 30, 2023 | 345,000 | |
Total | 496,548 | |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2019 | 20,000 | |
June 30, 2020 | 20,000 | |
June 30, 2021 | 20,000 | |
June 30, 2022 | 5,000 | |
Total | 65,000 | $ 85,000 |
Yen Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2021 | 2,714 | |
Total | 2,714 | 2,679 |
U.S. Dollar Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2022 | 80,000 | |
Total | 80,000 | $ 252,000 |
Note Payable | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2020 | 3,834 | |
Total | 3,834 | |
Convertibles Notes | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2023 | 345,000 | |
Total | $ 345,000 |
Components of Earnings (Losses)
Components of Earnings (Losses) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. loss | $ (15,207) | $ (6,944) | $ (5,809) | ||||||||
Non-U.S. income | 137,401 | 125,732 | 95,764 | ||||||||
Earnings Before Income Taxes | $ 34,207 | $ 31,220 | $ 29,868 | $ 26,899 | $ 33,858 | $ 29,267 | $ 31,816 | $ 23,847 | $ 122,194 | $ 118,788 | $ 89,955 |
Components of Income Tax Expens
Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current, Federal | $ 699 | $ 2,133 | $ 3,704 | ||||||||
Current, State | 401 | 253 | 5 | ||||||||
Current, Foreign | 32,147 | 22,312 | 19,783 | ||||||||
Total Current | 33,247 | 24,698 | 23,492 | ||||||||
Deferred, Federal | (3,064) | (6,963) | 2,759 | ||||||||
Deferred, State | 1,615 | (1,251) | 1,302 | ||||||||
Deferred, Foreign | 2,394 | 7,030 | (3,084) | ||||||||
Total Deferred | 945 | (1,184) | 977 | ||||||||
Total Income Tax Expense | $ 7,040 | $ 1,122 | $ 20,272 | $ 5,758 | $ 1,211 | $ 6,837 | $ 7,913 | $ 7,553 | $ 34,192 | $ 23,514 | $ 24,469 |
Schedule of Principal Items Com
Schedule of Principal Items Comprising Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Inventory capitalization | $ 5,267 | $ 6,338 |
Non-deductible accruals | 1,125 | 1,705 |
Accrued employee benefits | 7,614 | 9,738 |
Net-operating loss and credit carryforwards | 48,738 | 53,048 |
Share-based compensation expense | 7,925 | 12,386 |
Other | 3,242 | 1,761 |
Valuation allowances | (21,797) | (42,562) |
Total deferred income tax assets | 52,114 | 42,414 |
Tax over book accumulated depreciation | (24,174) | (7,803) |
Intangible assets | (24,649) | (38,108) |
Tax on unremitted earnings | (13,090) | (6,210) |
Convertible debt | (11,376) | |
Other | (4,020) | (2,615) |
Total deferred income tax liabilities | (77,309) | (54,736) |
Net deferred income taxes | $ (25,195) | $ (12,322) |
Schedule of Reconciliation of I
Schedule of Reconciliation of Income Tax Expense at Statutory U.S. Federal Rate to Reported Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Taxes at statutory rate, amount | $ 34,284 | $ 41,576 | $ 31,484 | ||||||||
State income taxes-net of federal benefit, amount | 1,426 | (641) | 864 | ||||||||
Taxes on non U.S. earnings, amount | (16,058) | (12,907) | (13,860) | ||||||||
Valuation allowance, amount | (6,008) | (806) | 8,464 | ||||||||
Research and manufacturing incentive deductions and credits, amount | (7,024) | (5,681) | (4,374) | ||||||||
Stock compensation, amount | (4,103) | 1,770 | 702 | ||||||||
Repatriation tax, amount | 36,777 | ||||||||||
Impact of U.S. tax rate change on deferred balances, amount | (4,209) | ||||||||||
Other, amount | (893) | 203 | 1,189 | ||||||||
Total Income Tax Expense | $ 7,040 | $ 1,122 | $ 20,272 | $ 5,758 | $ 1,211 | $ 6,837 | $ 7,913 | $ 7,553 | $ 34,192 | $ 23,514 | $ 24,469 |
Taxes at statutory rate | 28.00% | 35.00% | 35.00% | ||||||||
State income taxes-net of federal benefit, rate | 1.00% | 1.00% | |||||||||
Taxes on non U.S. earnings, rate | (13.00%) | (11.00%) | (15.00%) | ||||||||
Valuation allowance, rate | (5.00%) | (1.00%) | 9.00% | ||||||||
Research and manufacturing incentive deductions and credits, rate | (6.00%) | (5.00%) | (5.00%) | ||||||||
Stock compensation, rate | (3.00%) | 2.00% | 1.00% | ||||||||
Repatriation tax, rate | 30.00% | ||||||||||
Impact of U.S. tax rate change on deferred balances, rate | (3.00%) | ||||||||||
Other, rate | (1.00%) | 1.00% | |||||||||
Total Effective Income Tax, rate | 28.00% | 20.00% | 27.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||
U.S. statutory rate | 28.00% | 35.00% | 35.00% | |
Cumulative provisional net charge in income tax expense due to change to territorial tax system | $ 8,000,000 | |||
Cash paid for income taxes | $ 21,300,000 | $ 23,600,000 | $ 18,500,000 | |
Effective income tax rate, reductions | 0.17% | 0.31% | 0.37% | |
Interest and penalties recognized within income tax expense (benefit) | $ 300,000 | $ 500,000 | $ 0 | |
Interest and penalties accrued | 600,000 | 300,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,600,000 | $ 1,300,000 | ||
Unrecognized tax benefits expected decrease during the next 12 months | $ 3,400,000 | |||
Internal Revenue Service | Earliest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Tax year remain open to examination | 2,015 | |||
Internal Revenue Service | Latest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Tax year remain open to examination | 2,018 | |||
State Jurisdictions | Earliest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Tax year remain open to examination | 2,013 | |||
State Jurisdictions | Latest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Tax year remain open to examination | 2,018 | |||
Foreign Taxing Jurisdictions | Earliest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Tax year remain open to examination | 2,008 | |||
Foreign Taxing Jurisdictions | Latest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Tax year remain open to examination | 2,018 | |||
U.S. Federal | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, year(s) under examination | 2,016 | |||
Subsidiaries in Philippines | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, year(s) under examination | 2,017 | |||
Subsidiary in Germany | Earliest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, year(s) under examination | 2,012 | |||
Subsidiary in Germany | Latest Tax Year | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, year(s) under examination | 2,015 | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Tax cut and job act measurement period | 1 year | |||
Scenario Plan | ||||
Income Tax Contingency [Line Items] | ||||
U.S. statutory rate | 21.00% |
Schedule of Gross Operating Los
Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Federal research and development credits | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 13,913 |
Federal research and development credits | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2019-06 |
Federal research and development credits | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2038-06 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 251 |
Loss carryforwards | $ 16,347 |
Foreign | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2024-06 |
Loss carryforwards, expiration date | 2019-06 |
Foreign | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2028-06 |
Loss carryforwards, expiration date | 2028-06 |
State | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 5,594 |
Loss carryforwards | $ 47,756 |
State | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2019-06 |
Loss carryforwards, expiration date | 2019-06 |
State | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2038-06 |
Loss carryforwards, expiration date | 2038-06 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards | $ 68,661 |
Federal | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards, expiration date | 2020-06 |
Federal | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards, expiration date | 2038-06 |
Schedule of Changes in Liabilit
Schedule of Changes in Liability for Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 7,577 | $ 5,559 | $ 4,022 |
Increases in current year tax positions | 2,536 | 895 | 2,146 |
Increases in prior year tax positions | 224 | 2,605 | 190 |
Decreases in prior year tax positions | (9) | (67) | |
Settlements | (1,143) | ||
Expiration of statute of limitations | (436) | (339) | (732) |
Ending balance | $ 9,892 | $ 7,577 | $ 5,559 |
Computation of Earnings Per Sha
Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 88,002 | $ 95,274 | $ 65,486 | ||||||||
Weighted average shares | 62,499 | 62,576 | 61,366 | ||||||||
Basic earnings per common share | $ 0.44 | $ 0.48 | $ 0.15 | $ 0.34 | $ 0.52 | $ 0.36 | $ 0.38 | $ 0.26 | $ 1.41 | $ 1.52 | $ 1.07 |
Net earnings | $ 88,002 | $ 95,274 | $ 65,486 | ||||||||
Weighted average shares | 62,499 | 62,576 | 61,366 | ||||||||
Dilutive effect of common stock equivalents | 2,634 | 1,931 | 1,543 | ||||||||
Diluted weighted average common shares | 65,133 | 64,507 | 62,909 | ||||||||
Diluted earnings per common share | $ 0.42 | $ 0.45 | $ 0.15 | $ 0.32 | $ 0.50 | $ 0.35 | $ 0.37 | $ 0.26 | $ 1.35 | $ 1.48 | $ 1.04 |
Schedule of Potential Shares of
Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares | 7,466 | 140 | 153 |
0.25% Convertible Senior Note Due 2022 | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares | 7,331 | ||
Stock Options And Restricted Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares | 135 | 140 | 153 |
Schedule of Potential Shares _2
Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share (Parenthetical) (Details) - 0.25% Convertible Senior Note Due 2022 | 12 Months Ended |
Jun. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Debt instrument, interest rate | 0.25% |
Debt instrument maturity date | Sep. 1, 2022 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Leases [Abstract] | |||
Rent expense | $ 17 | $ 14.7 | $ 14.2 |
Operating Lease Future Rental C
Operating Lease Future Rental Commitments (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 20,100 |
2,020 | 19,100 |
2,021 | 14,500 |
2,022 | 11,700 |
2,023 | 9,800 |
Thereafter | $ 52,700 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of share based compensation expense allocated to cost of sales | 20.00% | ||
Percentage of share based compensation expense allocated to selling, general and administrative expense | 80.00% | ||
Share based compensation expense | $ 19,676 | $ 16,036 | $ 10,906 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, outstanding | 96,100 | 69,300 | 10,100 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, exercised | 96,100 | 69,300 | 10,100 |
Total intrinsic value of stock options and cash-based stock appreciation rights, exercised | $ 14,700 | 12,300 | 4,500 |
Unrecognized compensation cost, weighted-average period of recognition, years | 3 years | ||
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance share grant, period | 12 months | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance share grant, period | 36 months | ||
Stock Options and Cash-Based Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 6,605 | $ 5,611 | $ 4,309 |
Weighted-average fair values of stock options granted under the stock option Plan | $ 14.23 | $ 8.88 | $ 7.35 |
Share based compensation, estimated forfeiture percentage | 17.60% | ||
Share based compensation expense attributable to non-vested shares | $ 13,900 | ||
Restricted Share Awards and Cash-Based Restricted Share Unit Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 7,850 | $ 6,799 | $ 4,401 |
Share based compensation, estimated forfeiture percentage | 10.20% | ||
Share based compensation, vesting period years | 3 years | ||
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense attributable to non-vested shares | $ 9,700 | ||
Unrecognized compensation cost, weighted-average period of recognition, years | 2 years | ||
Total fair value of restricted stock grant | $ 7,500 | 7,800 | 6,300 |
Total fair value of restricted stock vested | 17,000 | 6,200 | 5,500 |
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense attributable to non-vested shares | $ 4,700 | ||
Unrecognized compensation cost, weighted-average period of recognition, years | 1 year | ||
Total fair value of restricted stock grant | $ 3,800 | 5,300 | 2,400 |
Total fair value of restricted stock vested | 3,600 | 5,900 | 1,500 |
Liability Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 4,400 | $ 4,300 | $ 1,200 |
Omnibus Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock authorized for issuance under the Plan | 4,900,000 | ||
Shares available to be issued under the Plan | 955,000 |
Share-Based Compensation Expens
Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 19,676 | $ 16,036 | $ 10,906 |
Stock Options and Cash-Based Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | 6,605 | 5,611 | 4,309 |
Restricted Share Awards and Cash-Based Restricted Share Unit Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | 7,850 | 6,799 | 4,401 |
Performance Share Awards and Cash-Based Performance Share Unit Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 5,221 | $ 3,626 | $ 2,196 |
Fair Value Assumptions for Stoc
Fair Value Assumptions for Stock Option and Stock Appreciation Rights (Detail) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 2.00% | 1.43% | 1.68% |
Expected volatility | 37.00% | 37.00% | 38.00% |
Expected life of options | 6 years 5 months 4 days | 6 years 3 months 10 days | 6 years 5 months 4 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Option and Cash-Based Sto
Stock Option and Cash-Based Stock Appreciation Rights Activity (Detail) | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Number of Shares | |
Outstanding - July 1, 2017 | shares | 4,080,915 |
Granted | shares | 474,270 |
Exercised | shares | (573,004) |
Forfeited and Expired | shares | (53,473) |
Outstanding - June 30, 2018 | shares | 3,928,708 |
Exercisable - June 30, 2018 | shares | 2,288,266 |
Weighted Average Exercise Price | |
Outstanding - July 1, 2017 | $ / shares | $ 18.15 |
Granted | $ / shares | 35.54 |
Exercised | $ / shares | 18.27 |
Forfeited and Expired | $ / shares | 27.67 |
Outstanding - June 30, 2018 | $ / shares | 20.07 |
Exercisable - June 30, 2018 | $ / shares | $ 17.24 |
Cash-Based Stock Appreciation Rights | |
Number of Shares | |
Outstanding - July 1, 2017 | shares | 214,467 |
Granted | shares | 47,800 |
Exercised | shares | (30,467) |
Forfeited and Expired | shares | (26,352) |
Outstanding - June 30, 2018 | shares | 205,448 |
Exercisable - June 30, 2018 | shares | 59,766 |
Weighted Average Exercise Price | |
Outstanding - July 1, 2017 | $ / shares | $ 19.17 |
Granted | $ / shares | 35.46 |
Exercised | $ / shares | 18.44 |
Forfeited and Expired | $ / shares | 23.14 |
Outstanding - June 30, 2018 | $ / shares | 22.56 |
Exercisable - June 30, 2018 | $ / shares | $ 18.47 |
Share-Based Compensation Outsta
Share-Based Compensation Outstanding and Exercisable Options (Detail) | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | shares | 4,134,156 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 5 years 9 months 7 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 20.20 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 2,348,032 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 4 years 2 months 4 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 17.27 |
$10.04 - $15.38 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 10.04 |
Range of Exercise Prices, Upper range | $ 15.38 |
$10.04 - $15.38 | Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | shares | 902,022 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 4 years 2 months 15 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 13.25 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 667,878 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 3 years 6 months 14 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 12.99 |
$15.47 - $23.50 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 15.47 |
Range of Exercise Prices, Upper range | $ 23.50 |
$15.47 - $23.50 | Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | shares | 2,647,015 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 5 years 6 months 29 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 19.29 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 1,657,129 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 4 years 4 months 24 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 18.80 |
$25.91 - $39.65 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 25.91 |
Range of Exercise Prices, Upper range | $ 39.65 |
$25.91 - $39.65 | Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | shares | 569,559 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 9 years |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 34.79 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 23,025 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 7 years 1 month 20 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 31.23 |
$41.50 - $45.24 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 41.50 |
Range of Exercise Prices, Upper range | $ 45.24 |
$41.50 - $45.24 | Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | shares | 15,560 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 9 years 6 months 18 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 42.87 |
Restricted Share and Cash-Based
Restricted Share and Cash-Based Restricted Share Unit Activity (Detail) | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Restricted Stock | |
Number of Shares | |
Nonvested - June 30, 2017 | shares | 811,833 |
Granted | shares | 166,348 |
Vested | shares | (370,571) |
Forfeited | shares | (12,091) |
Nonvested - June 30, 2018 | shares | 595,519 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2017 | $ / shares | $ 19.45 |
Granted | $ / shares | 35.58 |
Vested | $ / shares | 18.15 |
Forfeited | $ / shares | 28.71 |
Nonvested - June 30, 2018 | $ / shares | $ 24.58 |
Cash-Based Restricted Share Units | |
Number of Shares | |
Nonvested - June 30, 2017 | shares | 140,927 |
Granted | shares | 46,012 |
Vested | shares | (55,189) |
Forfeited | shares | (14,424) |
Nonvested - June 30, 2018 | shares | 117,326 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2017 | $ / shares | $ 19.12 |
Granted | $ / shares | 35.43 |
Vested | $ / shares | 17.45 |
Forfeited | $ / shares | 24.97 |
Nonvested - June 30, 2018 | $ / shares | $ 25.57 |
Performance Share Award Activit
Performance Share Award Activity (Detail) | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Performance Share Awards | |
Number of Shares | |
Nonvested - June 30, 2017 | shares | 377,710 |
Granted | shares | 99,168 |
Vested | shares | (70,210) |
Forfeited | shares | (24,398) |
Nonvested - June 30, 2018 | shares | 382,270 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2017 | $ / shares | $ 19.52 |
Granted | $ / shares | 35.25 |
Vested | $ / shares | 14.84 |
Forfeited | $ / shares | 17.84 |
Nonvested - June 30, 2018 | $ / shares | $ 24.57 |
Cash-Based Performance Share Units | |
Number of Shares | |
Nonvested - June 30, 2017 | shares | 17,152 |
Granted | shares | 9,120 |
Vested | shares | (2,221) |
Forfeited | shares | (6,772) |
Nonvested - June 30, 2018 | shares | 17,279 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2017 | $ / shares | $ 19.37 |
Granted | $ / shares | 35.25 |
Vested | $ / shares | 15.42 |
Forfeited | $ / shares | 25.88 |
Nonvested - June 30, 2018 | $ / shares | $ 25.71 |
Segment and Geographic Report_3
Segment and Geographic Reporting - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 3 |
II-VI Compound Semiconductors Ltd | |
Segment Reporting Information [Line Items] | |
Acquisition date | Aug. 7, 2017 |
IPI | |
Segment Reporting Information [Line Items] | |
Acquisition date | Jun. 19, 2017 |
Financial Information of Compan
Financial Information of Company's Operation by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | $ 321,075 | $ 294,746 | $ 281,470 | $ 261,503 | $ 273,717 | $ 244,987 | $ 231,822 | $ 221,520 | $ 1,158,794 | $ 972,046 | $ 827,216 |
Operating income | 136,763 | 115,556 | 90,916 | ||||||||
Interest expense | (5,049) | (5,014) | (4,644) | (3,645) | (2,262) | (1,936) | (1,365) | (1,246) | (18,352) | (6,809) | (3,081) |
Other income, net | (768) | 1,755 | 2,026 | 770 | 223 | 2,490 | 5,621 | 1,707 | 3,783 | 10,041 | 2,120 |
Income taxes | (7,040) | (1,122) | (20,272) | (5,758) | (1,211) | (6,837) | (7,913) | (7,553) | (34,192) | (23,514) | (24,469) |
Net earnings | 27,167 | $ 30,098 | $ 9,596 | $ 21,141 | 32,647 | $ 22,430 | $ 23,903 | $ 16,294 | 88,002 | 95,274 | 65,486 |
Depreciation and amortization | 80,770 | 63,637 | 56,663 | ||||||||
Expenditures for property, plant & equipment | 161,323 | 142,945 | 58,170 | ||||||||
Segment assets | 1,761,661 | 1,477,297 | 1,761,661 | 1,477,297 | |||||||
Equity Investment | 69,215 | 11,727 | 69,215 | 11,727 | |||||||
Goodwill | 270,678 | 250,342 | 270,678 | 250,342 | 233,755 | ||||||
II-VI Laser Solutions | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Goodwill | 98,737 | 79,527 | 98,737 | 79,527 | 84,105 | ||||||
II-VI Photonics | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Goodwill | 109,670 | 108,544 | 109,670 | 108,544 | 96,760 | ||||||
II- VI Performance Products | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Goodwill | 62,271 | 62,271 | 62,271 | 62,271 | 52,890 | ||||||
Operating Segments | II-VI Laser Solutions | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 405,940 | 317,495 | 289,434 | ||||||||
Inter-segment revenues | 34,590 | 33,669 | 23,685 | ||||||||
Operating income | 40,119 | 27,459 | 33,398 | ||||||||
Depreciation and amortization | 38,004 | 24,684 | 16,822 | ||||||||
Expenditures for property, plant & equipment | 80,776 | 81,346 | 24,885 | ||||||||
Segment assets | 740,020 | 572,314 | 740,020 | 572,314 | |||||||
Goodwill | 98,737 | 79,527 | 98,737 | 79,527 | |||||||
Operating Segments | II-VI Photonics | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 486,485 | 440,361 | 339,447 | ||||||||
Inter-segment revenues | 11,180 | 8,003 | 10,569 | ||||||||
Operating income | 63,152 | 66,462 | 39,738 | ||||||||
Depreciation and amortization | 23,242 | 21,612 | 20,255 | ||||||||
Expenditures for property, plant & equipment | 36,122 | 28,811 | 21,831 | ||||||||
Segment assets | 554,574 | 535,418 | 554,574 | 535,418 | |||||||
Goodwill | 109,670 | 108,544 | 109,670 | 108,544 | |||||||
Operating Segments | II- VI Performance Products | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 266,369 | 214,190 | 198,335 | ||||||||
Inter-segment revenues | 26,262 | 10,189 | 7,274 | ||||||||
Operating income | 33,492 | 21,635 | 17,780 | ||||||||
Depreciation and amortization | 19,524 | 17,341 | 19,586 | ||||||||
Expenditures for property, plant & equipment | 44,425 | 32,788 | 11,454 | ||||||||
Segment assets | 467,067 | 369,565 | 467,067 | 369,565 | |||||||
Equity Investment | 69,215 | 11,727 | 69,215 | 11,727 | |||||||
Goodwill | $ 62,271 | $ 62,271 | 62,271 | 62,271 | |||||||
Eliminations | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Inter-segment revenues | $ (72,032) | $ (51,861) | $ (41,528) |
Geographical Information of Rev
Geographical Information of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 321,075 | $ 294,746 | $ 281,470 | $ 261,503 | $ 273,717 | $ 244,987 | $ 231,822 | $ 221,520 | $ 1,158,794 | $ 972,046 | $ 827,216 |
USA | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 373,735 | 294,200 | 266,347 | ||||||||
China | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 253,672 | 208,595 | 172,292 | ||||||||
Hong Kong | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 186,978 | 190,702 | 140,821 | ||||||||
Germany | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 132,161 | 88,304 | 72,070 | ||||||||
Japan | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 89,153 | 76,212 | 57,287 | ||||||||
Switzerland | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 49,557 | 50,497 | 54,760 | ||||||||
Vietnam | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 26,898 | 22,497 | 24,267 | ||||||||
Italy | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 11,458 | 10,791 | 10,160 | ||||||||
Korea | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 9,757 | 6,584 | 3,887 | ||||||||
United Kingdom | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 9,359 | 8,473 | 8,154 | ||||||||
Singapore | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 5,941 | 3,913 | 3,039 | ||||||||
Belgium | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 4,511 | 7,503 | 6,026 | ||||||||
Philippines | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 3,909 | 3,057 | 8,106 | ||||||||
Taiwan | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 1,705 | 718 | |||||||||
Total Non-United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 785,059 | $ 677,846 | $ 560,869 |
Geographical Information of Lon
Geographical Information of Long Lived Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | $ 527,711 | $ 371,572 | $ 258,914 |
USA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 309,062 | 240,029 | 137,521 |
China | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 81,175 | 62,024 | 51,824 |
United Kingdom | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 65,357 | 396 | 203 |
Switzerland | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 37,155 | 36,795 | 38,202 |
Germany | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 14,876 | 15,323 | 15,162 |
Vietnam | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 10,042 | 8,272 | 8,895 |
Philippines | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 6,628 | 6,115 | 4,399 |
Hong Kong | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 2,818 | 1,914 | 1,765 |
Other | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 598 | 704 | 943 |
Total Non-United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | $ 218,649 | $ 131,543 | $ 121,393 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2018 | Nov. 30, 2017 | Feb. 29, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Payment for earnout amount | $ 2,000 | |||
Equity interest acquired | 93.80% | 93.80% | ||
Convertible Notes | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Debt instrument, interest rate | 0.25% | |||
Other Liabilities | ASC 815-10, Derivatives and Hedging | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity method Investment, noncurrent liabilities | $ 2,200 | |||
Minimum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity interest acquired | 50.00% | |||
EpiWorks | Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Business acquisitions, contingent consideration | $ 6,000 | |||
IPI | Upon Achievement of Financial And Transitional Objectives Relating to Finance Information Technology And Human Resources | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Business acquisitions, contingent consideration | $ 2,500 |
Summary of Fair Value and Carry
Summary of Fair Value and Carrying Value of Convertible Notes (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Convertible notes fair value | $ 388,125 |
Convertible notes carrying value | $ 288,591 |
Summary by Level of Fair Value
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Assets: | ||
Foreign currency forward contracts | $ 121 | $ 191 |
Liabilities: | ||
Contingent earnout arrangements | 5,405 | 5,795 |
Net put option | 2,024 | |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Foreign currency forward contracts | 121 | 191 |
Fair Value, Inputs, Level 3 | ||
Liabilities: | ||
Contingent earnout arrangements | 5,405 | $ 5,795 |
Net put option | $ 2,024 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangement Related to Acquisition (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Aug. 31, 2017 | Jun. 30, 2018 | |
Activity: | ||
Purchase price adjustment - IPI | $ (500) | |
Fair Value, Inputs, Level 3 | EpiWorks and IPI | ||
Business Acquisition Contingent Consideration [Line Items] | ||
Balance - beginning of period | $ 5,795 | |
Activity: | ||
Net put option | 2,233 | |
Balance - end of period | 7,429 | |
Fair Value, Inputs, Level 3 | EpiWorks and IPI | Other Expense, (Income) | ||
Activity: | ||
Changes in fair value recorded in other expense (income), net | (564) | |
Fair Value, Inputs, Level 3 | IPI | ||
Activity: | ||
Purchase price adjustment - IPI | $ (35) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2018JPY (¥) | Jun. 30, 2017USD ($) | |
Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2018-07 | ||
Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2018-10 | ||
Foreign Currency Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | $ | $ 12,000,000 | $ 12,700,000 | |
Foreign Currency Forward Exchange Contracts | Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 250,000,000 | ||
Foreign Currency Forward Exchange Contracts | Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 500,000,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to profit sharing retirement plan | $ 5,000 | $ 4,300 | $ 3,400 |
Common stock discount percentage from the prevailing market price | 5.00% | ||
Percentage of maximum employee subscription rate on base pay | 10.00% | ||
Contributions to the Compensation Plan by the employer | $ 2,731 | 2,432 | |
Contributions to the Compensation Plan by the employer in fiscal year 2019 | $ 2,700 | ||
Percentage of discretionary incentive compensation | 100.00% | ||
Contributions to the Compensation Plan by the employees | $ 1,100 | $ 800 | 1,200 |
II-VI Performance Metals Defined Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to the Compensation Plan by the employer | $ 0 | ||
Employee Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Common stock authorized for issuance under the Plan | 1,600,000 | ||
Common stock available for purchase under the plan | 462,798 | 477,949 |
Schedule of Changes in Projecte
Schedule of Changes in Projected Benefit Obligations and Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of period | $ 59,518 | $ 54,094 | |
Service cost | 3,766 | 3,689 | $ 2,680 |
Interest cost | 424 | 163 | 434 |
Benefits accumulated, net of benefits paid | 1,474 | 1,743 | |
Plan amendments (Reduction of the conversion rate 6.8% to 6.2%) | (4,068) | ||
Actuarial (gain) loss on obligation | 1,606 | (2,777) | |
Participant contributions | 1,415 | 1,262 | |
Currency translation adjustment | (1,581) | 1,344 | |
Projected benefit obligation, end of period | 62,554 | 59,518 | 54,094 |
Change in plan assets: | |||
Plan assets at fair value, beginning of period | 42,990 | 35,857 | |
Actual return on plan assets | 1,566 | 805 | |
Employer contributions | 2,731 | 2,432 | |
Participant contributions | 1,415 | 1,262 | |
Benefits accumulated, net of benefits paid | 1,474 | 1,743 | |
Currency translation adjustment | (1,142) | 891 | |
Plan assets at fair value, end of period | 49,034 | 42,990 | 35,857 |
Other non-current assets: | |||
Deferred tax asset | 2,859 | 3,496 | |
Other non-current liabilities: | |||
Underfunded pension liability | 13,520 | 16,528 | |
Amounts recognized in accumulated other comprehensive income, net of tax: | |||
Pension adjustment, net of taxes of $763, $674, and ($1,886) for the years ended June 30, 2018, 2017, and 2016, respectively | 2,846 | 2,514 | $ (7,031) |
Accumulated benefit obligation, end of period | $ 59,800 | $ 56,457 |
Schedule of Changes in Projec_2
Schedule of Changes in Projected Benefit Obligations and Plan Assets (Parenthetical) (Detail) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Postemployment Benefits [Abstract] | ||
Defined benefit plan conversion rate | 6.20% | 6.80% |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 3,766 | $ 3,689 | $ 2,680 |
Interest cost | 424 | 163 | 434 |
Expected return on plan assets | 849 | (742) | (1,097) |
Net actuarial loss and prior service credit | 203 | 594 | (234) |
Net periodic pension cost | $ 5,242 | $ 3,704 | $ 1,783 |
Schedule of Projected and Accum
Schedule of Projected and Accumulated Benefit Obligations Rates (Detail) | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Discount rate | 0.90% | 0.80% |
Salary increase rate | 2.00% | 2.00% |
Schedule of Assumptions Used in
Schedule of Assumptions Used in Calculation of Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 0.80% | 0.30% | 1.10% |
Salary increase rate | 2.00% | 2.00% | 2.00% |
Expected return on plan assets | 2.00% | 2.00% | 2.00% |
Schedule of Swiss Plan's Asset
Schedule of Swiss Plan's Asset Allocation (Detail) - Fair Value, Inputs, Level 2 | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Fixed Income Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 12.00% | 10.00% |
Equity Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 50.00% | 52.00% |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 31.00% | 26.00% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 4.00% | 9.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 3.00% | 3.00% |
Schedule of Estimated Future Be
Schedule of Estimated Future Benefit Payments Under Swiss Plan (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2,019 | $ 5,100 |
2,020 | 1,800 |
2,021 | 2,700 |
2,022 | 2,900 |
2,023 | 3,200 |
Next five years | $ 22,400 |
Components of Other Accrued Lia
Components of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 42,979 | $ 29,056 |
Deferred revenue | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 3,384 | 2,345 |
Earnout arrangements | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 5,405 | 3,930 |
Other accrued liabilities | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 29,511 | 18,235 |
Warranty reserve | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 4,679 | $ 4,546 |
Change in Carrying Value of Com
Change in Carrying Value of Company's Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | ||
Balance-Beginning of Year | $ 4,546 | $ 3,908 |
Settlements during the period | (3,688) | (4,212) |
Additional warranty liability recorded | 3,821 | 4,850 |
Balance-End of Year | $ 4,679 | $ 4,546 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Prior Year Acquisitions | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Business acquisitions, contingent consideration | $ 5.4 | |
CoAdna, Inc | Scenario Forecast | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Business acquisitions, contingent consideration | $ 85 |
Schedule of Future Commitments
Schedule of Future Commitments (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,019 | $ 114,307 |
2,020 | 3,477 |
2,021 | $ 567 |
Share Repurchase Programs (Deta
Share Repurchase Programs (Detail) - USD ($) | 11 Months Ended | 12 Months Ended | 47 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2018 | Aug. 31, 2017 | Aug. 31, 2014 | |
Equity Class Of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||||
Purchase of common stock, shares | 1,316,587 | ||||||
Purchase of Treasury Stock | $ 49,875,000 | $ 6,284,000 | $ 19,000,000 | ||||
Offering and Sale of Notes | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||||
Purchase of common stock, shares | 1,414,900 | ||||||
Purchase of Treasury Stock | $ 49,900,000 | ||||||
Program | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Purchase of common stock, shares | 0 | 0 | 380,538 | ||||
Purchase of Treasury Stock | $ 6,300,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 900,563 | $ 782,338 | $ 729,081 |
Other comprehensive income (loss) before reclassifications | 9,795 | (355) | (22,456) |
Amounts reclassified from AOCI | 203 | 594 | (226) |
Net current-period other comprehensive income | 9,998 | 239 | (22,682) |
Ending Balance | 1,024,311 | 900,563 | 782,338 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (8,460) | (6,185) | 9,466 |
Other comprehensive income (loss) before reclassifications | 7,152 | (2,275) | (15,651) |
Net current-period other comprehensive income | 7,152 | (2,275) | (15,651) |
Ending Balance | (1,308) | (8,460) | (6,185) |
Defined Benefit Pension Plan | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (5,318) | (7,832) | (801) |
Other comprehensive income (loss) before reclassifications | 2,643 | 1,920 | (6,805) |
Amounts reclassified from AOCI | 203 | 594 | (226) |
Net current-period other comprehensive income | 2,846 | 2,514 | (7,031) |
Ending Balance | (2,472) | (5,318) | (7,832) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (13,778) | (14,017) | 8,665 |
Ending Balance | $ (3,780) | $ (13,778) | $ (14,017) |
Capital Lease - Schedule of Fut
Capital Lease - Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 2,292 |
2,020 | 2,355 |
2,021 | 2,419 |
2,022 | 2,486 |
2,023 | 2,554 |
Thereafter | 24,740 |
Total minimum lease payments | 36,846 |
Less amount representing interest | 11,906 |
Present value of capitalized payments | $ 24,940 |
Capital Lease - Additional Info
Capital Lease - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Capital Leased Assets [Line Items] | |||
Capital leases future minimum payments present value at inception | $ 25,000 | ||
Property, plant and equipment estimated useful lives, years | 15 years | ||
Depreciation | $ 66,202 | $ 50,894 | $ 44,324 |
Capital Leased Asset | |||
Capital Leased Assets [Line Items] | |||
Depreciation | $ 1,700 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Nov. 08, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jul. 28, 2016 |
Subsequent Event [Line Items] | ||||||
Net cash paid at acquisition | $ 80,503,000 | $ 40,015,000 | $ 122,157,000 | |||
Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 325,000,000 | |||||
Subsequent Event | CoAdna, Inc | ||||||
Subsequent Event [Line Items] | ||||||
Net cash paid at acquisition | $ 85,000,000 | |||||
Acquisition, net of cash acquired | $ 42,200,000 | |||||
Subsequent Event | Finisar Corporation | ||||||
Subsequent Event [Line Items] | ||||||
Percentage of aggregate consideration in cash | 60.00% | |||||
Percentage of aggregate consideration in stock | 40.00% | |||||
Subsequent Event | Finisar Corporation | Senior Secured Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Commitment fee percentage | 100.00% | |||||
Subsequent Event | Finisar Corporation | Term B Loan | ||||||
Subsequent Event [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 975,000,000 | |||||
Subsequent Event | Finisar Corporation | Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Line of credit, maximum borrowing capacity | 450,000,000 | |||||
Subsequent Event | Finisar Corporation | Maximum | Senior Secured Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount | $ 2,425,000,000 | |||||
Subsequent Event | Finisar Corporation | Cash Election Consideration | ||||||
Subsequent Event [Line Items] | ||||||
Amount per share to be received | $ 26 | |||||
Subsequent Event | Finisar Corporation | Stock Election Consideration | ||||||
Subsequent Event [Line Items] | ||||||
Number of shares to be received | 0.5546 | |||||
Subsequent Event | Finisar Corporation | Mixed Election Consideration | ||||||
Subsequent Event [Line Items] | ||||||
Amount per share to be received | $ 15.60 | |||||
Number of shares to be received | 0.2218 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 321,075 | $ 294,746 | $ 281,470 | $ 261,503 | $ 273,717 | $ 244,987 | $ 231,822 | $ 221,520 | $ 1,158,794 | $ 972,046 | $ 827,216 |
Cost of goods sold | 192,465 | 176,521 | 172,075 | 155,530 | 164,802 | 147,479 | 137,296 | 134,107 | 696,591 | 583,684 | 514,959 |
Internal research and development | 32,896 | 30,625 | 27,779 | 25,575 | 25,910 | 25,462 | 23,526 | 21,908 | 116,875 | 96,806 | 60,578 |
Selling, general and administrative | 55,690 | 53,121 | 49,130 | 50,624 | 47,108 | 43,333 | 43,440 | 42,119 | 208,565 | 176,000 | 160,763 |
Interest expense | 5,049 | 5,014 | 4,644 | 3,645 | 2,262 | 1,936 | 1,365 | 1,246 | 18,352 | 6,809 | 3,081 |
Other expense (income), net | 768 | (1,755) | (2,026) | (770) | (223) | (2,490) | (5,621) | (1,707) | (3,783) | (10,041) | (2,120) |
Earnings Before Income Taxes | 34,207 | 31,220 | 29,868 | 26,899 | 33,858 | 29,267 | 31,816 | 23,847 | 122,194 | 118,788 | 89,955 |
Income taxes | 7,040 | 1,122 | 20,272 | 5,758 | 1,211 | 6,837 | 7,913 | 7,553 | 34,192 | 23,514 | 24,469 |
Net Earnings | $ 27,167 | $ 30,098 | $ 9,596 | $ 21,141 | $ 32,647 | $ 22,430 | $ 23,903 | $ 16,294 | $ 88,002 | $ 95,274 | $ 65,486 |
Basic earnings per share | $ 0.44 | $ 0.48 | $ 0.15 | $ 0.34 | $ 0.52 | $ 0.36 | $ 0.38 | $ 0.26 | $ 1.41 | $ 1.52 | $ 1.07 |
Diluted earnings per share | $ 0.42 | $ 0.45 | $ 0.15 | $ 0.32 | $ 0.50 | $ 0.35 | $ 0.37 | $ 0.26 | $ 1.35 | $ 1.48 | $ 1.04 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Allowance for doubtful accounts | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 1,314 | $ 2,016 | $ 1,048 | |
Charged to Expense | (129) | (134) | 1,123 | |
Deduction from Reserves | [1] | (348) | (568) | (155) |
Balance at End of Year | 837 | 1,314 | 2,016 | |
Warranty reserve | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 4,546 | 3,908 | 3,251 | |
Charged to Expense | 3,821 | 4,850 | 4,648 | |
Charged to Other Accounts | [2] | 82 | ||
Deduction from Reserves | (3,688) | (4,212) | (4,073) | |
Balance at End of Year | 4,679 | 4,546 | 3,908 | |
Deferred tax asset valuation allowance | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 42,562 | 42,641 | 2,713 | |
Charged to Expense | (4,602) | (79) | 8,464 | |
Charged to Other Accounts | [3] | (16,163) | 36,240 | |
Deduction from Reserves | [4] | (4,776) | ||
Balance at End of Year | $ 21,797 | $ 42,562 | $ 42,641 | |
[1] | Primarily relates to write-offs of accounts receivable. | |||
[2] | Relates to the warranty reserve acquired from acquisitions. | |||
[3] | Valuation allowance recorded through goodwill. | |||
[4] | Reduction in valuation allowance as a result of divesture of portion of business. |