Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2013 | Feb. 03, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'IIVI | ' |
Entity Registrant Name | 'II-VI INC | ' |
Entity Central Index Key | '0000820318 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 62,623,420 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $212,683 | $185,433 |
Accounts receivable - less allowance for doubtful accounts of $1,008 at December 31, 2013 and $1,479 at June 30, 2013 | 113,182 | 107,173 |
Inventories | 177,136 | 141,859 |
Deferred income taxes | 11,044 | 10,794 |
Prepaid and refundable income taxes | 4,449 | 4,543 |
Prepaid and other current assets | 15,045 | 11,342 |
Total Current Assets | 533,539 | 461,144 |
Property, plant & equipment, net | 225,592 | 170,672 |
Goodwill | 190,525 | 123,352 |
Other intangible assets, net | 142,747 | 86,701 |
Investment | 11,581 | 11,203 |
Deferred income taxes | 2,957 | 2,696 |
Other assets | 9,220 | 8,034 |
Total Assets | 1,116,161 | 863,802 |
Current Liabilities | ' | ' |
Current portion of long-term debt | 20,000 | ' |
Accounts payable | 44,726 | 23,617 |
Accrued compensation and benefits | 29,454 | 28,315 |
Accrued income tax payable | 6,602 | 7,697 |
Deferred income taxes | 146 | 110 |
Other accrued liabilities | 25,397 | 34,695 |
Total Current Liabilities | 126,325 | 94,434 |
Long-term debt | 262,858 | 114,036 |
Deferred income taxes | 13,423 | 4,095 |
Other liabilities | 46,091 | 15,129 |
Total Liabilities | 448,697 | 227,694 |
Shareholders' Equity | ' | ' |
Preferred stock, no par value; authorized - 5,000,000 shares; none issued | 0 | ' |
Common stock, no par value; authorized - 300,000,000 shares; issued - 70,744,108 shares at December 31, 2013; 70,223,286 shares at June 30, 2013 | 206,593 | 194,284 |
Accumulated other comprehensive income | 19,973 | 15,600 |
Retained earnings | 500,141 | 482,878 |
Shareholders' equity excluding treasury stock | 726,707 | 692,762 |
Treasury stock, at cost, 8,144,800 shares at December 31, 2013 and 8,011,733 shares at June 30, 2013 | -59,243 | -56,654 |
Total Shareholders' Equity | 667,464 | 636,108 |
Total Liabilities and Shareholders' Equity | $1,116,161 | $863,802 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $1,008 | $1,479 |
Preferred stock, par value | $0 | $0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 70,744,108 | 70,223,286 |
Treasury stock, shares | 8,144,800 | 8,011,733 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | ' | ' | ' | ' |
Domestic | $60,569 | $51,479 | $124,259 | $103,762 |
International | 111,196 | 73,628 | 197,526 | 149,343 |
Total Revenues | 171,765 | 125,107 | 321,785 | 253,105 |
Costs, Expenses and Other Expense (Income) | ' | ' | ' | ' |
Cost of goods sold | 118,371 | 77,839 | 212,080 | 155,438 |
Internal research and development | 11,355 | 5,626 | 19,102 | 11,211 |
Selling, general and administrative | 32,471 | 26,174 | 67,564 | 52,530 |
Interest expense | 1,169 | 223 | 1,652 | 259 |
Other expense (income), net | -1,125 | -4,551 | -1,072 | -5,312 |
Total Costs, Expenses and Other Expense (Income) | 162,241 | 105,311 | 299,326 | 214,126 |
Earnings from Continuing Operations Before Income Taxes | 9,524 | 19,796 | 22,459 | 38,979 |
Income Taxes | 2,086 | 6,721 | 5,329 | 10,983 |
Earnings from Continuing Operations | 7,438 | 13,075 | 17,130 | 27,996 |
Earnings (loss) from Discontinued Operation, net of income tax | 131 | -608 | 133 | -2,397 |
Net Earnings | 7,569 | 12,467 | 17,263 | 25,599 |
Less: Net Earnings Attributable to Redeemable Noncontrolling Interest | 0 | 267 | 0 | 681 |
Net Earnings Attributable to II-VI Incorporated | $7,569 | $12,200 | $17,263 | $24,918 |
Earnings (loss) Attributable to II-VI Incorporated: Basic Earnings (loss) Per Share: | ' | ' | ' | ' |
Continuing Operations | $0.12 | $0.20 | $0.27 | $0.44 |
Discontinued Operation | $0 | ($0.01) | $0 | ($0.04) |
Consolidated | $0.12 | $0.19 | $0.28 | $0.40 |
Earnings (loss) Attributable to II-VI Incorporated: Diluted Earnings (loss) Per Share: | ' | ' | ' | ' |
Continuing Operations | $0.12 | $0.20 | $0.27 | $0.43 |
Discontinued Operation | $0 | ($0.01) | $0 | ($0.04) |
Consolidated | $0.12 | $0.19 | $0.27 | $0.39 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net earnings | $7,569 | $12,467 | $17,263 | $25,599 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 2,158 | 2,043 | 4,373 | 3,122 |
Comprehensive income | 9,727 | 14,510 | 21,636 | 28,721 |
Net earnings attributable to redeemable noncontrolling interest | 0 | 267 | 0 | 681 |
Other comprehensive income (loss) attributable to redeemable noncontrolling interest: | ' | ' | ' | ' |
Foreign currency translation adjustment attributable to redeemable noncontrolling interest | 0 | 57 | 0 | -216 |
Comprehensive income attributable to redeemable noncontrolling interest | 0 | 324 | 0 | 465 |
Comprehensive income attributable to II-VI Incorporated | $9,727 | $14,186 | $21,636 | $28,256 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | ' | ' |
Net earnings | $17,263 | $25,599 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
(Earnings) loss from discontinued operation, net of tax | -133 | 2,397 |
Depreciation | 20,656 | 16,793 |
Amortization | 5,577 | 2,374 |
Share-based compensation expense | 7,195 | 6,534 |
Loss on foreign currency remeasurements and transactions | 638 | 810 |
Earnings from equity investment | -378 | -593 |
Deferred income taxes | -1,862 | 2,307 |
Excess tax benefits from share-based compensation expense | -416 | -387 |
Increase (decrease) in cash from changes in: | ' | ' |
Accounts receivable | -4,739 | 19,665 |
Inventories | 1,207 | -8,683 |
Accounts payable | 18,764 | -4,894 |
Income taxes | -3,588 | 1,688 |
Other operating net assets | -5,507 | -4,062 |
Continuing Operations | 54,677 | 59,548 |
Discontinued Operation | 1,197 | 1,429 |
Net cash provided by operating activities | 55,874 | 60,977 |
Cash Flows from Investing Activities | ' | ' |
Additions to property, plant & equipment | -14,289 | -13,144 |
Purchases of businesses, net of cash acquired | -175,201 | -126,397 |
Proceeds received on contractual settlement from Thailand flood | 0 | 2,436 |
Other investing activities | 0 | 1,465 |
Continuing Operations | -189,490 | -135,640 |
Discontinued Operation | 0 | -33 |
Net cash used in investing activities | -189,490 | -135,673 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from borrowings | 183,000 | 113,000 |
Payments on borrowings | -14,000 | -1,000 |
Payment on earnout arrangement | -2,200 | ' |
Payments of redeemable noncontrolling interest | -8,789 | -217 |
Proceeds from exercises of stock options | 2,805 | 1,625 |
Purchases of treasury stock | 0 | -10,840 |
Payment of deferred financing costs | -950 | -560 |
Minimum tax withholding requirements | -740 | -137 |
Excess tax benefits from share-based compensation expense | 416 | 387 |
Net cash provided by financing activities | 159,542 | 102,258 |
Effect of exchange rate changes on cash and cash equivalents | 1,324 | 304 |
Net increase in cash and cash equivalents | 27,250 | 27,866 |
Cash and Cash Equivalents at Beginning of Period | 185,433 | 134,944 |
Cash and Cash Equivalents at End of Period | 212,683 | 162,810 |
Cash paid for interest | 1,617 | 184 |
Cash paid for income taxes | 9,123 | 6,379 |
Non cash transactions: | ' | ' |
Purchase of business - holdback amount recorded in other accrued liabilities | 2,000 | ' |
Purchase of business - holdback amount recorded in other liabilities | 10,000 | ' |
Capital lease obligation incurred on facility lease | 12,005 | ' |
Purchase of business utilizing earnout arrangement recorded in other liabilities | 0 | 4,200 |
Purchase of business utilizing deferred purchae price recorded in other accrued liabilities | $0 | $700 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
In Thousands | |||||
Beginning Balance at Jun. 30, 2013 | $636,108 | $194,284 | $15,600 | $482,878 | ($56,654) |
Beginning Balance, shares at Jun. 30, 2013 | ' | 70,223 | ' | ' | -8,012 |
Shares issued under share-based compensation plans (in shares) | ' | 521 | ' | ' | ' |
Shares issued under share-based compensation plans | 2,908 | 2,908 | ' | ' | ' |
Minimum tax withholding requirements, (in shares) | ' | ' | ' | ' | -42 |
Minimum tax withholding requirements | -799 | ' | ' | ' | -799 |
Share-based compensation expense | 7,195 | 7,195 | ' | ' | ' |
Net earnings | 17,263 | ' | ' | 17,263 | ' |
Treasury stock in deferred compensation plan, (in shares) | ' | ' | ' | ' | -91 |
Treasury stock under deferred compensation arrangements | ' | 1,790 | ' | ' | -1,790 |
Excess tax benefits from share-based compensation expense | 416 | 416 | ' | ' | ' |
Foreign currency translation adjustments | 4,373 | ' | 4,373 | ' | ' |
Ending Balance at Dec. 31, 2013 | $667,464 | $206,593 | $19,973 | $500,141 | ($59,243) |
Ending Balance, shares at Dec. 31, 2013 | ' | 70,744 | ' | ' | -8,145 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |
Dec. 31, 2013 | ||
Basis of Presentation | ' | |
Note 1. | Basis of Presentation | |
The condensed consolidated financial statements of II-VI Incorporated (“II-VI” or the “Company”) for the three and six months ended December 31, 2013 and 2012 are unaudited. In the opinion of management, all adjustments considered necessary for a fair presentation for the periods presented have been included. All adjustments are of a normal recurring nature unless disclosed otherwise. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. The consolidated results of operations for the three and six months ended December 31, 2013 are not necessarily indicative of the results to be expected for the full fiscal year. The June 30, 2013 Condensed Consolidated Balance Sheet information was derived from the Company’s audited financial statements. | ||
In conjunction with the acquisitions of Oclaro, Inc.’s (“Oclaro”) Switzerland-based semiconductor laser business on September 12, 2013, and Oclaro’s fiber amplifier and micro-optics business on November 1, 2013, the Company has established a new reporting segment “Active Optical Products” which reports the operating results of these two recently acquired businesses. |
Discontinued_Operation
Discontinued Operation | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Discontinued Operation | ' | |||||||||||||||
Note 2. | Discontinued Operation | |||||||||||||||
During the three months ended December 31, 2013, the Company completed the discontinuance of its tellurium product line by exiting all business activities associated with this product line. This product line was previously serviced by PRM and was included as part of the Military & Materials segment. Prior periods have been restated to present this product line on a discontinued operation basis. The revenues and earnings (losses) of the tellurium product line have been reflected as a discontinued operation for the periods presented as follows: ($000): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 697 | $ | 782 | $ | 1,849 | $ | 5,076 | ||||||||
Earnings (loss) from discontinued operation before income taxes | 131 | (533 | ) | 133 | (2,397 | ) | ||||||||||
Income tax benefit (expense) | - | (75 | ) | - | - | |||||||||||
Earnings from discontinued operation, net of taxes | $ | 131 | $ | (608 | ) | $ | 133 | $ | (2,397 | ) | ||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended | |
Dec. 31, 2013 | ||
Recent Accounting Pronouncements | ' | |
Note 3. | Recent Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update related to a parent’s accounting for the cumulative translation adjustment upon de-recognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The update clarifies the applicable guidance under current U.S. GAAP for the release of the cumulative translation adjustment upon a reporting entity’s de-recognition of a subsidiary or group of assets within a foreign entity or part or all of its investment in a foreign entity. The update requires a reporting entity, which either sells a part or all of its investment in a foreign entity or ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity, to release any related cumulative translation adjustment into net income. This update is effective prospectively for fiscal years beginning after December 15, 2013 and will be effective for the Company beginning in the first quarter of fiscal year 2015. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements. | ||
In February 2013, the FASB issued an accounting standards update related to disclosure requirements of reclassifications out of accumulated other comprehensive income. The adoption of the guidance requires the Company to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, the Company is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. This update was effective for the Company beginning in the first quarter of fiscal year 2014 and did not have a significant impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Acquisitions | ' | |||||||||||||||
Note 4. | Acquisitions | |||||||||||||||
Oclaro’s Fiber Amplifier and Micro-Optics Business | ||||||||||||||||
In November 2013, the Company acquired certain assets of Oclaro used in the fiber amplifier and micro-optics business. The total consideration consisted of $88.6 million. At closing the Company paid $79.6 million in cash, a $4.0 million holdback by the Company for 14 months to address any post-closing adjustments or claims, with the remaining $5.0 million previously paid to Oclaro, Inc. on September 12, 2013. The Company operates the business under the name II-VI Network Solutions Division (“Network Solutions”) and includes it with II-VI Laser Enterprise, GmbH in the Company’s new operating segment, Active Optical Products. Network Solutions is a manufacturer of fiber amplifiers and micro-optics used in the optical communications market. Due to the timing of the acquisition, the Company is still in the process of completing its fair market valuation, including the valuation of certain tangible and intangible assets as well as deferred income taxes. The purchase price of the Network Solutions acquisition is summarized as follows ($000): | ||||||||||||||||
Net cash paid at acquisition date | $ | 79,600 | ||||||||||||||
Cash previously paid | 5,000 | |||||||||||||||
Holdback amount recorded in Other liabilities | 4,000 | |||||||||||||||
Purchase price | $ | 88,600 | ||||||||||||||
The following table presents the preliminary allocation of the purchase price of the assets acquired at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of Network Solutions during fiscal year 2014 ($000): | ||||||||||||||||
Assets | ||||||||||||||||
Inventories | $ | 11,314 | ||||||||||||||
Property, plant & equipment | 20,546 | |||||||||||||||
Intangible assets | 28,795 | |||||||||||||||
Goodwill | 27,945 | |||||||||||||||
Total assets acquired | $ | 88,600 | ||||||||||||||
The goodwill of $27.9 million is included in the Active Optical Products segment and is attributed to the expected synergies and the assembled workforce of Network Solutions. All of the goodwill is deductible for income tax purposes. | ||||||||||||||||
The amount of revenues and net loss from operations of Network Solutions included in the Company’s Condensed Consolidated Statement of Earnings for the three months ended December 31, 2013 was $13.2 million and $1.4 million, respectively. | ||||||||||||||||
Oclaro’s Switzerland-Based Semiconductor Laser Business | ||||||||||||||||
In September 2013, the Company acquired all of the outstanding shares of Oclaro Switzerland GmbH, a limited liability company formed under the laws of the Swiss confederation, as well as certain additional assets of Oclaro. used in the semiconductor laser business. The total consideration consisted of $90.6 million, net of cash acquired of $1.7 million, a $6.0 million holdback amount by the Company for 15 months to address any post-closing adjustments or claims, and a $2.0 million holdback amount for potential post-closing working capital adjustments. The Company operates the acquired business under the name Laser Enterprise and includes it in the Company’s new operating segment, Active Optical Products. Laser Enterprise is a manufacturer of high-power semiconductor laser components enabling fiber and direct diode laser systems for material processing, medical, consumer and printing applications. In addition, the segment manufactures pump lasers for optical amplifiers for both terrestrial and submarine applications and vertical cavity surface emitting lasers (VCSELS) for optical navigation, optical interconnects and optical sensing applications. | ||||||||||||||||
Due to the timing of the acquisition, the Company is still in the process of completing its fair market valuation, including the valuation of certain tangible and intangible assets as well as deferred income taxes. The purchase price of the Laser Enterprise acquisition is summarized as follows ($000): | ||||||||||||||||
Net cash paid at acquisition date | $ | 90,601 | ||||||||||||||
Holdback amount recorded in Other accrued liabilities | 2,000 | |||||||||||||||
Holdback amount recorded in Other liabilities | 6,000 | |||||||||||||||
Purchase price | $ | 98,601 | ||||||||||||||
The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of Laser Enterprise during fiscal year 2014 ($000): | ||||||||||||||||
Assets | ||||||||||||||||
Inventories | $ | 26,071 | ||||||||||||||
Prepaid and other assets | 1,963 | |||||||||||||||
Deferred income taxes | 2,371 | |||||||||||||||
Property, plant & equipment | 28,068 | |||||||||||||||
Intangible assets | 32,593 | |||||||||||||||
Goodwill | 39,206 | |||||||||||||||
Total assets acquired | $ | 130,272 | ||||||||||||||
Liabilities | ||||||||||||||||
Accounts payable | $ | 2,214 | ||||||||||||||
Deferred income taxes | 13,467 | |||||||||||||||
Accrued income taxes | 2,714 | |||||||||||||||
Other accrued liabilities | 13,276 | |||||||||||||||
Total liabilities assumed | $ | 31,671 | ||||||||||||||
Net assets acquired | $ | 98,601 | ||||||||||||||
The goodwill of Laser Enterprise of $39.2 million is included in the Active Optical Products segment and is attributed to the expected synergies and the assembled workforce of Laser Enterprise. None of the goodwill is deductible for income tax purposes. | ||||||||||||||||
The amount of revenues and net loss from operations of Laser Enterprise included in the Company’s Condensed Consolidated Statement of Earnings for the three months ended December 31, 2013 was $20.2 million and $3.3 million, respectively, and was $25.0 million and $4.0 million, respectively, for the six months ended December 31, 2013. | ||||||||||||||||
In conjunction with the acquisitions of Network Solutions and Laser Enterprise, the Company expensed transactions costs of approximately $0.3 million and $3.7 million, net of tax, for the three and six months ended December 31, 2013, respectively. These costs were recorded within selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings. | ||||||||||||||||
Pro Forma Information | ||||||||||||||||
The following unaudited pro forma consolidated results of operations for the three months ended December 31, 2013 and 2012 have been prepared as if the acquisitions of Network Solutions and Laser Enterprise had occurred on July 1, 2012, the beginning of the Company’s fiscal year 2013, which is the fiscal year prior to this acquisition. As a result, certain transaction related expenses of $0.3 million and $3.7 million (net of tax) for the three and six months periods were only included in the earliest periods presented below ($000 except per share data). | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenues | $ | 181,204 | $ | 170,457 | $ | 373,436 | $ | 343,804 | ||||||||
Earnings from continuing operations attributable to II-VI Incorporated | 10,912 | 10,032 | 25,493 | 16,272 | ||||||||||||
Basic earnings per share from continuing operations attributable to II-VI Incorporated | 0.17 | 0.16 | 0.41 | 0.26 | ||||||||||||
Diluted earnings per share from continuing operations attributable to II-VI Incorporated | 0.17 | 0.16 | 0.4 | 0.25 | ||||||||||||
The pro forma results are not necessarily indicative of what actually would have occurred if the transactions had occurred as described above, are not intended to be a projection of future results and do not reflect any cost savings that might be achieved from the combined operations. |
Investment
Investment | 6 Months Ended | |
Dec. 31, 2013 | ||
Investment | ' | |
Note 5. | Investment | |
The Company has an equity investment in Guangdong Fuxin Electronic Technology (“Fuxin”) based in Guangdong Province, China of 20.2%, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at December 31, 2013 and June 30, 2013 was $11.6 million and $11.2 million, respectively. During the three months ended December 31, 2013 and 2012, the Company’s pro-rata share of earnings from this investment was $0.1 million and $0.2 million, respectively, and was $0.4 million and $0.6 million during the six months ended December 31, 2013 and 2012, respectively, and were recorded in Other expense (income), net in the Condensed Consolidated Statements of Earnings. |
Inventories
Inventories | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Note 6. | Inventories | |||||||
The components of inventories were as follows ($000): | ||||||||
December 31, | June 30, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 67,101 | $ | 59,290 | ||||
Work in progress | 58,637 | 43,895 | ||||||
Finished goods | 51,398 | 38,674 | ||||||
$ | 177,136 | $ | 141,859 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment | ' | |||||||
Note 7. | Property, Plant and Equipment | |||||||
Property, plant and equipment consists of the following ($000): | ||||||||
December 31, | June 30, | |||||||
2013 | 2013 | |||||||
Land and land improvements | $ | 2,381 | $ | 2,236 | ||||
Buildings and improvements | 96,532 | 87,189 | ||||||
Machinery and equipment | 340,470 | 276,802 | ||||||
Construction in progress | 11,834 | 10,831 | ||||||
451,217 | 377,058 | |||||||
Less accumulated depreciation | (225,625 | ) | (206,386 | ) | ||||
$ | 225,592 | $ | 170,672 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||||
Note 8. | Goodwill and Other Intangible Assets | |||||||||||||||||||||||
Changes in the carrying amount of goodwill are as follows ($000): | ||||||||||||||||||||||||
Six Months Ended December 31, 2013 | ||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Total | |||||||||||||||||||
Balance-beginning of period | $ | 9,677 | $ | 60,269 | $ | 30,712 | $ | 22,694 | $ | - | $ | 123,352 | ||||||||||||
Goodwill acquired | - | - | - | - | 67,151 | 67,151 | ||||||||||||||||||
Goodwill adjustment | - | - | - | (516 | ) | - | (516 | ) | ||||||||||||||||
Foreign currency translation | 94 | 444 | - | - | - | 538 | ||||||||||||||||||
Balance-end of period | $ | 9,771 | $ | 60,713 | $ | 30,712 | $ | 22,178 | $ | 67,151 | $ | 190,525 | ||||||||||||
The Company reviews the recoverability of goodwill at least annually and any time business conditions indicate a potential change in recoverability. The measurement of a potential impairment begins with comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company uses a discounted cash flow model (“DCF model”) and 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. However, actual fair values that could be realized could differ from those used to evaluate the impairment of goodwill. | ||||||||||||||||||||||||
In connection with the acquisitions of Laser Enterprise in September 2013 and Network Solutions in November 2013, the Company recorded the excess purchase price over the net assets of the businesses acquired as goodwill in the accompanying Condensed Consolidated Balance Sheet, based on preliminary purchase price allocations. | ||||||||||||||||||||||||
During the six months ended December 31, 2013, the Company recorded an adjustment to goodwill of $0.5 million associated with the November 2012 acquisition of M Cubed Technologies, Inc (“M Cubed”). This adjustment related to a change in deferred income tax assets and was recorded in conjunction with the finalization and filing of the M Cubed final income tax return. | ||||||||||||||||||||||||
The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of December 31, 2013 and June 30, 2013 was as follows ($000): | ||||||||||||||||||||||||
31-Dec-13 | 30-Jun-13 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | |||||||||||||||||||
Technology and Patents | $ | 68,128 | $ | (12,797 | ) | $ | 55,331 | $ | 39,659 | $ | (10,455 | ) | $ | 29,204 | ||||||||||
Trademarks | 17,902 | (1,001 | ) | 16,901 | 17,855 | (963 | ) | 16,892 | ||||||||||||||||
Customer Lists | 84,943 | (15,494 | ) | 69,449 | 52,614 | (12,189 | ) | 40,425 | ||||||||||||||||
Other | 2,532 | (1,466 | ) | 1,066 | 1,580 | (1,400 | ) | 180 | ||||||||||||||||
Total | $ | 173,505 | $ | (30,758 | ) | $ | 142,747 | $ | 111,708 | $ | (25,007 | ) | $ | 86,701 | ||||||||||
In conjunction with the acquisitions of Laser Enterprise and Network Solutions, the Company recorded $28.3 million of technology and patents, $32.1 million of customer lists and $1.0 million related to non-compete agreements. These intangibles assets were recorded based on the Company’s preliminary purchase price allocations which are expected to be finalized during fiscal year 2014. | ||||||||||||||||||||||||
Amortization expense recorded on the Company’s intangible assets was $3.4 million and $5.6 million, for the three and six months ended December 31, 2013 and was $1.3 million and $2.4 million for the three and six months ended December 31, 2012, respectively. The technology and patents are being amortized over a range of 120 to 240 months with a weighted average remaining life of approximately 121 months. The customer lists are being amortized over a range of approximately 120 months to 192 months with a weighted average remaining life of approximately 122 months. The gross carrying amount of trademarks includes $16.4 million of acquired trade names with indefinite lives that are not amortized but tested annually for impairment or more frequently if a triggering event occurs. Included in the gross carrying amount and accumulated amortization of the Company’s intangible assets is the effect of foreign currency translation on that portion of the intangible assets relating to the Company’s German subsidiaries as well as Photop and AOFR Pty. Ltd. (“Photop AOFR”). | ||||||||||||||||||||||||
At December 31, 2013, the estimated amortization expense for existing intangible assets for each of the five succeeding fiscal years is as follows ($000): | ||||||||||||||||||||||||
Year Ending June 30, | ||||||||||||||||||||||||
Remaining 2014 | $ | 7,038 | ||||||||||||||||||||||
2015 | 13,499 | |||||||||||||||||||||||
2016 | 13,432 | |||||||||||||||||||||||
2017 | 13,423 | |||||||||||||||||||||||
2018 | 12,947 | |||||||||||||||||||||||
Debt
Debt | 6 Months Ended | ||||||||||||||||
Jun. 30, 2013 | |||||||||||||||||
Debt | ' | ||||||||||||||||
Note 9. | Debt | ||||||||||||||||
The components of debt for the periods indicated were as follows ($000): | |||||||||||||||||
December 31, | June 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Line of credit, interest at LIBOR, as defined, plus 1.50% and 1.25%, respectively | $ | 185,000 | $ | 111,000 | |||||||||||||
Term loan, interest at LIBOR, as defined, plus 1.25% | 95,000 | - | |||||||||||||||
Yen denominated line of credit, interest at LIBOR, as defined, plus 1.50% and 1.25%, respectively | 2,858 | 3,036 | |||||||||||||||
Total debt | 282,858 | 114,036 | |||||||||||||||
Current portion of long-term debt | (20,000 | ) | - | ||||||||||||||
Long-term debt, less current portion | $ | 262,858 | $ | 114,036 | |||||||||||||
On September 10, 2013, the Company amended and restated its existing credit agreement. The Second Amended and Restated Credit Agreement (the “Amended Credit Facility”) provides for a revolving credit facility of $225 million (increased from $140 million), as well as a $100 million Term Loan. The Term Loan shall be re-paid in consecutive quarterly principal payments on the first business day of each January, April, July and October, with the first payment commencing on October 1, 2013, 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. 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 Amended Credit Facility in an aggregate additional amount not to exceed $100 million. The Amended Credit Facility has a five-year term through September 2018 and has an interest rate of LIBOR, as defined in the agreement, plus 0.75% to 1.75% based on the Company’s ratio of consolidated indebtedness to consolidated EBITDA. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of December 31, 2013, the Company was in compliance with all financial covenants under its Amended Credit Facility. | |||||||||||||||||
In conjunction with entering into the Amended Credit Facility, the Company incurred approximately $1.0 million of deferred financing costs which are being amortized over the term of the agreement. As a result of the overall increase in borrowing capacity, existing deferred financing costs at the time of the amendment of $0.5 million are also being amortized over the term of the Amended Credit Facility. | |||||||||||||||||
The Company’s Yen denominated line of credit is a 500 million Yen facility that has a five-year term through June 2016 and has an interest rate equal to LIBOR, as defined in the loan agreement, plus 0.625% to 1.50%. At December 31, 2013 and June 30, 2013, the Company had 300 million Yen borrowed. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of December 31, 2013, the Company was in compliance with all financial covenants under its Yen facility. | |||||||||||||||||
The Company had aggregate availability of $40.5 million and $29.8 million under its lines of credit as of December 31, 2013 and June 30, 2013, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. As of December 31, 2013 and June 30, 2013, total outstanding letters of credit supported by the credit facilities were $1.5 million and $1.3 million, respectively. | |||||||||||||||||
The weighted average interest rate of total borrowings was 1.7% and 1.2% for the six months ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Remaining annual principal payments under the Company’s existing credit facilities as of December 31, 2013 were as follows: | |||||||||||||||||
U.S. | |||||||||||||||||
Dollar | |||||||||||||||||
Term | Yen Line | Line of | |||||||||||||||
Period | Loan | of Credit | Credit | Total | |||||||||||||
Year 1 | $ | 20,000 | $ | - | $ | - | $ | 20,000 | |||||||||
Year 2 | 20,000 | - | - | 20,000 | |||||||||||||
Year 3 | 20,000 | 2,858 | - | 22,858 | |||||||||||||
Year 4 | 20,000 | - | - | 20,000 | |||||||||||||
Year 5 | 15,000 | - | 185,000 | 200,000 | |||||||||||||
Total | $ | 95,000 | $ | 2,858 | $ | 185,000 | $ | 282,858 | |||||||||
Income_Taxes
Income Taxes | 6 Months Ended | |
Dec. 31, 2013 | ||
Income Taxes | ' | |
Note 10. | Income Taxes | |
The Company’s year-to-date effective income tax rate from continuing operations at December 31, 2013 and 2012 was 23.7% and 28.2%, respectively. The variations between the Company’s effective tax rate from continuing operations and the U.S. statutory rate of 35.0% were primarily due to the consolidation of the Company’s foreign operations, which are subject to income taxes at lower statutory rates. A change in the mix of pretax income from these various tax jurisdictions could have a material impact on the Company’s effective tax rate. | ||
U.S. GAAP clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of December 31, 2013 and June 30, 2013, the Company’s gross unrecognized income tax benefit was $3.6 million and $3.3 million, respectively. The Company has classified the uncertain tax positions as noncurrent income tax liabilities, as the amounts are not expected to be paid within one year. If recognized, substantially all of the gross unrecognized tax benefits at December 31, 2013 would impact the effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in the income tax provision on the Condensed Consolidated Statements of Earnings. The amount of accrued interest and penalties included in the $3.6 million and $3.3 million of gross unrecognized income tax benefit at December 31, 2013 and June 30, 2013 was immaterial. Fiscal years 2010 to 2013 remain open to examination by the United States Internal Revenue Service, fiscal years 2008 to 2013 remain open to examination by certain state jurisdictions, and fiscal years 2005 to 2013 remain open to examination by certain foreign taxing jurisdictions. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Note 11. | Earnings Per Share | |||||||||||||||
The following table sets forth the computation of earnings per share attributable to II-VI Incorporated for the periods indicated. Weighted average shares issuable upon the exercises of stock options and the release of performance and restricted shares that were not included in the calculation were approximately 452,000 and 378,000, respectively, for the three and six months ended December 31, 2013, and 450,000 and 433,000, respectively, for the three and six months ended December 31, 2012, because they were anti-dilutive ($000 except per share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings from continuing operations attributable to II-VI Incorporated | $ | 7,438 | $ | 12,808 | $ | 17,130 | $ | 27,315 | ||||||||
Earnings (loss) from discontinued operation | 131 | (608 | ) | 133 | (2,397 | ) | ||||||||||
Net earnings attributable to II-VI Incorporated | $ | 7,569 | $ | 12,200 | $ | 17,263 | $ | 24,918 | ||||||||
Divided by: | ||||||||||||||||
Weighted average shares | 62,563 | 62,580 | 62,471 | 62,683 | ||||||||||||
Basic earnings (loss) attributable to II-VI Incorporated per common share: | ||||||||||||||||
Continuing operations | $ | 0.12 | $ | 0.2 | $ | 0.27 | $ | 0.44 | ||||||||
Discontinued operation | $ | - | $ | (0.01 | ) | $ | - | $ | (0.04 | ) | ||||||
Consolidated | $ | 0.12 | $ | 0.19 | $ | 0.28 | $ | 0.4 | ||||||||
Earnings from continuing operations attributable to II-VI Incorporated | $ | 7,438 | $ | 12,808 | $ | 17,130 | $ | 27,315 | ||||||||
Earnings (loss) from discontinued operation | 131 | (608 | ) | 133 | (2,397 | ) | ||||||||||
Net earnings attributable to II-VI Incorporated | $ | 7,569 | $ | 12,200 | $ | 17,263 | $ | 24,918 | ||||||||
Divided by: | ||||||||||||||||
Weighted average shares | 62,563 | 62,580 | 62,471 | 62,683 | ||||||||||||
Dilutive effect of common stock equivalents | 1,372 | 1,442 | 1,470 | 1,427 | ||||||||||||
Diluted weighted average common shares | 63,935 | 64,022 | 63,941 | 64,110 | ||||||||||||
Diluted earnings (loss) attributable to II-VI Incorporated per common share: | ||||||||||||||||
Continuing operations | $ | 0.12 | $ | 0.2 | $ | 0.27 | $ | 0.43 | ||||||||
Discontinued operation | $ | - | $ | (0.01 | ) | $ | - | $ | (0.04 | ) | ||||||
Consolidated | $ | 0.12 | $ | 0.19 | $ | 0.27 | $ | 0.39 | ||||||||
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||||||
Note 12. | Segment Reporting | |||||||||||||||||||||||||||
The Company reports its business segments using the “management approach” model for segment reporting. 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. | ||||||||||||||||||||||||||||
In conjunction with the acquisitions of Oclaro, Inc.’s Switzerland-based semiconductor laser business on September 12, 2013 and Network Solutions on November 1, 2013, the Company has established a new reporting segment “Active Optical Products” which reports the operating results of the Company’s recently acquired businesses. | ||||||||||||||||||||||||||||
The Company has five reportable segments as of December 31, 2013. The Company’s chief operating decision maker receives and reviews financial information in this format. The Company evaluates business segment performance based upon reported business segment earnings, which is defined as earnings from continuing operations before income taxes, interest and other income or expense. The segments are managed separately due to the production requirements and facilities unique to each segment. The Company has the following reportable segments at December 31, 2013: (i) Infrared Optics, which consists of the Company’s infrared optics and material products businesses, HIGHYAG Lasertechnologies, GmbH (“HIGHYAG”) and certain remaining corporate activities, primarily corporate assets and capital expenditures; (ii) Near-Infrared Optics, which consists of Photop, Photop Aegis, Inc. (“Photop Aeigs”) and Photop AOFR; (iii) Military & Materials, which consists of the Company’s LightWorks Optical Systems (formerly the Company’s EEO and LightWorks Optical Systems subsidiaries, “LWOS”), VLOC Incorporated (“VLOC”), Max Levy Autograph, Inc. (“MLA”) and PRM; (iv) Advanced Products Group, which is comprised of the Company’s Marlow Industries, Inc. (“Marlow”), M Cubed, the Wide Bandgap Materials Group (“WBG”) and the Worldwide Materials Group (“WMG”), which is responsible for corporate research and development activities; and (v) Active Optical Products which consists of Laser Enterprise and Network Solutions. | ||||||||||||||||||||||||||||
During the three months ended December 31, 2013, the Company completed the discontinuance of its tellurium product line by exiting all business activities associated with this product line. This product line was previously serviced by PRM and was included as part of the Military & Materials segment. Segment information for all periods presented has been adjusted to properly reflect the tellurium product as a discontinued operation. | ||||||||||||||||||||||||||||
The Infrared Optics segment is divided into geographic locations in the U.S., Singapore, China, Germany, Switzerland, Japan, Belgium, the U.K. and Italy. The Infrared Optics segment is directed by a general manager, while each geographic location is also directed by a general manager, and is further divided into production and administrative units that are directed by managers. The Infrared Optics segment designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI brand name and used primarily in high-power CO2 lasers. The Infrared Optics segment also manufactures fiber-delivered beam delivery systems and processing tools for industrial lasers sold under the HIGHYAG brand name. | ||||||||||||||||||||||||||||
The Near-Infrared Optics segment is located in the U.S., China, Vietnam, Australia, Germany, Japan, the U.K., Italy and Hong Kong. The Near-Infrared Optics segment is directed by the Corporate Chief Operating Officer and is further divided into production and administrative units that are directed by managers. The Near-Infrared Optics segment manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other diverse consumer and commercial applications sold under the Photop brand name and manufactures tunable optical devices and couplers and combiners required for high speed optical networks sold under the Photop Aegis and Photop AOFR brand names, respectively. | ||||||||||||||||||||||||||||
The Military & Materials segment is located in the U.S. and the Philippines. The Military & Materials segment is directed by a Corporate Vice President, while each geographic location is directed by a general manager. The Military & Materials segment is further divided into production and administrative units that are directed by managers. The Military & Materials segment designs, manufactures and markets ultra-violet to infrared optical components and high-precision optical assemblies for military, medical and commercial laser and imaging applications under the LWOS and VLOC brand names and manufactures and markets micro-fine conductive mesh patterns for optical, mechanical, and ceramic components for applications under the MLA brand name. The segment also refines selenium metals for internal consumption and a rare earth element under the PRM brand name. | ||||||||||||||||||||||||||||
The Advanced Products Group is located in the U.S., Vietnam, Japan, China and Germany and is directed by the Corporate Chief Operating Officer. In the Advanced Products Group segment, Marlow designs and manufactures thermoelectric cooling and power generation solutions for use in defense and space, optical communications, medical, consumer and industrial markets. M Cubed develops advanced ceramic materials and precision motion control products addressing the semiconductor, display, industrial and defense markets. WBG manufactures and markets single crystal silicon carbide substrates for use in solid-state lighting, wireless infrastructure, radio frequency (“RF”) electronics and power switching industries. WMG directs the corporate research and development initiatives. | ||||||||||||||||||||||||||||
The Active Optical Products segment is located in Switzerland, China, the U.S., Italy, Japan and the U.K. The Active Optical Products segment is directed by the Corporate Chief Operating Officer. Laser Enterprise manufactures high-power semiconductor laser components enabling fiber and direct diode laser systems for material processing, medical, consumer and printing applications. In addition, the Laser Enterprise manufactures pump lasers for optical amplifiers for both terrestrial and submarine applications and VCSELS for optical navigation, optical interconnects and optical sensing applications. Network Solutions manufacturers optical amplifiers and micro-optics for both terrestrial and submarine applications within the optical communications market. | ||||||||||||||||||||||||||||
The accounting policies of the segments are the same as those of the Company. All of the Company’s corporate expenses are allocated to the segments. The Company evaluates segment performance based upon reported segment earnings, 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 ($000): | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Eliminations | Total | ||||||||||||||||||||||
Revenues | $ | 49,206 | $ | 35,857 | $ | 24,482 | $ | 28,834 | $ | 33,386 | $ | - | $ | 171,765 | ||||||||||||||
Inter-segment revenues | 189 | 483 | 1,439 | 1,838 | - | (3,949 | ) | - | ||||||||||||||||||||
Segment earnings (loss) | 7,847 | 2,530 | 3,469 | 2,520 | (6,798 | ) | - | 9,568 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | - | (1,169 | ) | ||||||||||||||||||||
Other income, net | - | - | - | - | - | - | 1,125 | |||||||||||||||||||||
Income taxes | - | - | - | - | - | - | (2,086 | ) | ||||||||||||||||||||
Earnings from discontinued operation | - | - | - | - | - | - | 131 | |||||||||||||||||||||
Net earnings | - | - | - | - | - | - | 7,569 | |||||||||||||||||||||
Depreciation and amortization | 2,212 | 4,137 | 2,086 | 2,512 | 3,450 | - | 14,397 | |||||||||||||||||||||
Segment assets | 255,688 | 309,594 | 126,355 | 177,167 | 247,357 | - | 1,116,161 | |||||||||||||||||||||
Expenditures for property, plant and equipment | 3,021 | 2,914 | 611 | 719 | 451 | - | 7,716 | |||||||||||||||||||||
Investment | - | - | - | 11,581 | - | - | 11,581 | |||||||||||||||||||||
Goodwill | 9,771 | 60,713 | 30,712 | 22,178 | 67,151 | - | 190,525 | |||||||||||||||||||||
Three Months Ended December 31, 2012 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
Revenues | $ | 45,410 | $ | 36,996 | $ | 20,578 | $ | 22,123 | $ | - | $ | 125,107 | ||||||||||||||||
Inter-segment revenues | 651 | 636 | 798 | 1,376 | (3,461 | ) | - | |||||||||||||||||||||
Segment earnings (loss) | 10,532 | 5,141 | (542 | ) | 337 | - | 15,468 | |||||||||||||||||||||
Interest expense | - | - | - | - | - | (223 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 4,551 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (6,721 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (608 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 12,467 | ||||||||||||||||||||||
Depreciation and amortization | 2,168 | 4,385 | 1,554 | 2,022 | - | 10,129 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 1,448 | 2,558 | 660 | 2,566 | - | 7,232 | ||||||||||||||||||||||
Six Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Eliminations | Total | ||||||||||||||||||||||
Revenues | $ | 101,807 | $ | 75,744 | $ | 50,754 | $ | 55,312 | $ | 38,168 | $ | - | $ | 321,785 | ||||||||||||||
Inter-segment revenues | 463 | 768 | 3,310 | 3,358 | - | (7,899 | ) | - | ||||||||||||||||||||
Segment earnings (loss) | 18,691 | 5,619 | 6,877 | 2,834 | (10,982 | ) | - | 23,039 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | - | (1,652 | ) | ||||||||||||||||||||
Other income, net | - | - | - | - | - | - | 1,072 | |||||||||||||||||||||
Income taxes | - | - | - | - | - | - | (5,329 | ) | ||||||||||||||||||||
Earnings from discontinued operation | - | - | - | - | - | - | 133 | |||||||||||||||||||||
Net earnings | - | - | - | - | - | - | 17,263 | |||||||||||||||||||||
Depreciation and amortization | 4,346 | 8,748 | 4,165 | 4,999 | 3,975 | - | 26,233 | |||||||||||||||||||||
Expenditures for property, plant and equipment | 4,912 | 5,442 | 1,739 | 1,550 | 646 | - | 14,289 | |||||||||||||||||||||
Six Months Ended December 31, 2012 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
Revenues | $ | 96,966 | $ | 77,642 | $ | 40,219 | $ | 38,278 | $ | - | $ | 253,105 | ||||||||||||||||
Inter-segment revenues | 1,151 | 968 | 2,338 | 2,560 | (7,017 | ) | - | |||||||||||||||||||||
Segment earnings (loss) | 22,374 | 12,863 | (826 | ) | (485 | ) | - | 33,926 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | (259 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 5,312 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (10,983 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (2,397 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 25,599 | ||||||||||||||||||||||
Depreciation and amortization | 4,232 | 8,672 | 3,007 | 3,256 | - | 19,167 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 2,588 | 4,203 | 1,973 | 4,380 | - | 13,144 | ||||||||||||||||||||||
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Share-Based Compensation | ' | |||||||||||||||
Note 13. | Share-Based Compensation | |||||||||||||||
The Board of Directors adopted the II-VI Incorporated 2012 Omnibus Incentive Plan (the “Plan”) which was approved by the shareholders of the Company. The Plan provides for the grant of non-qualified stock options, stock appreciation rights, restricted share awards, restricted share units, deferred share awards, performance share awards and performance share units to employees, officers and directors of the Company. The Company records share-based compensation expense for these awards in accordance with U.S. GAAP, which requires the recognition of the 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. | ||||||||||||||||
Share-based compensation expense is allocated approximately 20% to cost of goods sold and 80% to selling, general and administrative expense based on the employee classification of the grantees. Share-based compensation expense for the periods indicated was as follows ($000): | ||||||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||
Stock Options and Cash-Based Stock Appreciation Rights | $ | 1,416 | $ | 1,175 | $ | 3,376 | $ | 2,764 | ||||||||
Restricted Share Awards and Cash-Based Restricted Share Unit Awards | 1,095 | 1,035 | 2,609 | 2,096 | ||||||||||||
Performance Share Awards and Cash-Based Performance Share Unit Awards | 738 | 1,051 | 1,700 | 2,027 | ||||||||||||
$ | 3,249 | $ | 3,261 | $ | 7,685 | $ | 6,887 | |||||||||
Stock Options and Stock Appreciation Rights: | ||||||||||||||||
The Company utilizes the Black-Scholes valuation model for estimating the fair value of these awards. During the three months ended December 31, 2013 and 2012, the weighted average fair values of awards granted under the Plan were $6.40 and $8.19 per award, respectively, and $8.68 and $8.45, respectively, during the six months ended December 31, 2013 and 2012, using the following assumptions: | ||||||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||
Risk-free interest rate | 1.25 | % | 0.95 | % | 1.75 | % | 0.94 | % | ||||||||
Expected volatility | 46 | % | 48 | % | 47 | % | 49 | % | ||||||||
Expected life of options | 4.6 years | 6.0 years | 5.7 years | 5.7 years | ||||||||||||
Dividend yield | None | 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 awards. The risk free interest rate shown above is the weighted average rate for all awards granted during the each respective period. Expected volatility is based on the historical volatility of the Company’s Common Stock over the period commensurate with the expected life of the awards. The expected life calculation is based on the observed time to post-vesting exercise and/or forfeitures of awards 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 award cancellations pre-vesting and are estimated at a rate of 16%. 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. | ||||||||||||||||
Restricted Share Awards and Restricted Share Units: | ||||||||||||||||
The restricted share awards and units compensation expense was calculated based on the number of shares or units expected to be earned by the grantees multiplied by the stock price at the date of grant and is being recognized over the vesting period. Generally, the restricted share awards and units have a three year cliff-vesting provision and an estimated forfeiture rate of 7.5%. | ||||||||||||||||
Performance Share Awards and Performance Share Units: | ||||||||||||||||
The Compensation Committee of the Board of Directors of the Company has granted certain named executive officers and employees performance share awards and units under the Plan. As of December 31, 2013, the Company had outstanding grants covering performance periods ranging from 24 to 48 months. These awards are intended to provide continuing emphasis on specified financial performance goals that the Company considers important contributors to 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 awards and units compensation expense is calculated based on the estimated number of shares or units expected to be earned multiplied by the stock price at the date of grant. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Note 14. | 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 December 31, 2013, 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. At December 31, 2013, the Company had a contingent earnout arrangement related to the acquisition of LightWorks recorded at fair value. The LightWorks earnout arrangement provides up to a maximum of $4.2 million of additional cash payments to the former shareholders based upon LightWorks achieving certain agreed upon financial targets for revenues and customer orders in calendar year 2013, which if earned, will be paid no later than March 2014. As of December 31, 2013, the Company has made total earnout payments of $2.2 million for the customer order portion of the earnout arrangement which was achieved at 100% during July of 2013. The Company has recorded the fair value of the remaining revenue earnout arrangement of $1.1 million in Other accrued liabilities in the Condensed Consolidated Balance Sheet. The fair value of the earnout arrangement was based on significant inputs not observable in the market and represents a Level 3 measurement as defined by U.S. GAAP. The Company used the income approach in measuring the fair value of the earnout arrangement, which assumed a probability of 55% for the revenue earnout. The impact on fair value of discounting the revenue earnout arrangement was not significant as the earnout period ended on December 31, 2013 and is expected to be paid in March 2014. There were no fair value remeasurements recorded on the earnout arrangement during the three months ended December 31, 2013. | ||||||||||||||||
The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis for the periods presented ($000): | ||||||||||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | ||||||||||||||||
Markets | Significant | |||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Foreign currency forward contracts | $ | 301 | $ | - | $ | 301 | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Contingent earnout arrangement | $ | 1,100 | $ | - | $ | - | $ | 1,100 | ||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | ||||||||||||||||
Markets | Significant | |||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
30-Jun-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | 23 | $ | - | $ | 23 | $ | - | ||||||||
Contingent earnout arrangement | $ | 3,300 | $ | - | $ | - | $ | 3,300 | ||||||||
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 the three months ended December 31, 2013. | ||||||||||||||||
The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s Level 3 contingent earnout arrangement related to the acquisition of LightWorks ($000): | ||||||||||||||||
Significant | ||||||||||||||||
Unobservable Inputs | ||||||||||||||||
(Level 3) | ||||||||||||||||
Balance at July 1, 2013 | $ | 3,300 | ||||||||||||||
Payments | (2,200 | ) | ||||||||||||||
Changes in fair value | - | |||||||||||||||
Balance at December 31, 2013 | $ | 1,100 | ||||||||||||||
The carrying value of Cash and cash equivalents, Accounts receivable and Accounts payable 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 are considered Level 2 among the fair value hierarchy and have variable interest rates and accordingly their carrying amounts approximate fair value. |
Derivative_Instruments
Derivative Instruments | 6 Months Ended | |
Dec. 31, 2013 | ||
Derivative Instruments | ' | |
Note 15. | 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 market value of these contracts in the Company’s condensed consolidated financial statements. These contracts had a total notional amount of $8.0 million and $4.7 million at December 31, 2013 and June 30, 2013, respectively. As of December 31, 2013, these forward contracts had expiration dates ranging from January 2014 through April 2014, with Japanese Yen denominations individually ranging from 180 million Yen to 220 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 Condensed 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 Condensed Consolidated Balance Sheets. The change in the fair value of these contracts for the three months ended December 31, 2013 and 2012 was insignificant. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies | ' | |||
Note 16. | Commitments and Contingencies | |||
The Company records a warranty reserve as a charge against earnings based on a percentage of sales utilizing actual warranty claims over the last twelve months. The following table summarizes the change in the carrying value of the Company’s warranty reserve, which is a component of Other accrued liabilities in the Company’s Condensed Consolidated Balance Sheets, as of and for the six months ended December 31, 2013 ($000): | ||||
Six Months Ended | ||||
31-Dec-13 | ||||
Balance-beginning of period | $ | 1,661 | ||
Payments made during the period | (974 | ) | ||
Additional warranty liability recorded during the period | 887 | |||
Warranty liability assumed through acquisitions | 1,173 | |||
Balance-end of period | $ | 2,747 | ||
PostRetirement_Benefits
Post-Retirement Benefits | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Post-Retirement Benefits | ' | ||||||||
Note 17. | Post-Retirement Benefits | ||||||||
In connection with the Company’s acquisition of Laser Enterprise, the Company assumed the existing pension plan (the “Swiss Plan”) covering employees of the Zurich, Switzerland subsidiary which included an $8.9 million unfunded pension liability recorded as part of the preliminary purchase price allocation of Laser Enterprise. This unfunded pension liability is recorded in Other liabilities in the Condensed Consolidated Balance Sheet at December 31, 2013. Net periodic pension costs associated with the Swiss Plan for the three and six months ended December 31, 2013 included the following ($000): | |||||||||
Three Months | Six Months | ||||||||
Ended | Ended | ||||||||
December 31, | December 31, | ||||||||
2013 | 2013 | ||||||||
Service cost | $ | 835 | $ | 1,002 | |||||
Interest cost | 201 | 242 | |||||||
Expected return on plan assets | (331 | ) | (397 | ) | |||||
Net amortization | - | - | |||||||
Net periodic pension costs | $ | 705 | $ | 847 | |||||
Since the date of acquisition of Laser Enterprise, the Company contributed $0.6 million to the Swiss Plan. The Company currently anticipates contributing an estimated amount of approximately $1.0 million to the Swiss Plan during the remainder of fiscal year 2014. |
Capital_Lease
Capital Lease | 6 Months Ended | |||
Dec. 31, 2013 | ||||
Capital Lease | ' | |||
Note 18. | Capital Lease | |||
During the three months ended December 31, 2013, the Company's HIGHYAG subsidiary entered into a capital lease related to a building in Germany. The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): | ||||
Fiscal Year Ending: | Amount | |||
2014 (remaining) | $ | 631 | ||
2015 | 1,081 | |||
2016 | 1,081 | |||
2017 | 1,081 | |||
2018 | 1,081 | |||
Thereafter | 13,430 | |||
Total minimum lease payments | 18,385 | |||
Less amount representing interest | 6,380 | |||
Present value of capitalized payments | 12,005 | |||
Less: current portion | 445 | |||
Long-term portion | $ | 11,560 | ||
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 Condensed Consolidated Balance Sheet as of December 31, 2013. The present value of the capitalized payments of $12.0 million was recorded in Property, plant & equipment, net, in the Company’s Condensed Consolidated Balance Sheet as of December 31, 2013, with associated depreciation expense being recorded over the 17 year life of the lease. | ||||
Share_Repurchase_Program
Share Repurchase Program | 12 Months Ended | |
Dec. 31, 2013 | ||
Share Repurchase Program | ' | |
Note 19. | Share Repurchase Program | |
In February 2014, the Company’s Board of Directors authorized the Company to purchase up to $20 million of its Common Stock. The share repurchase program (“the program”) called 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. There have been no shares repurchased under the program as of the date of the filing of this Form 10-Q. |
Discontinued_Operation_Tables
Discontinued Operation (Tables) | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Summary of Revenues and Earnings (Losses) of Discontinued Operation | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 697 | $ | 782 | $ | 1,849 | $ | 5,076 | ||||||||
Earnings (loss) from discontinued operation before income taxes | 131 | (533 | ) | 133 | (2,397 | ) | ||||||||||
Income tax benefit (expense) | - | (75 | ) | - | - | |||||||||||
Earnings from discontinued operation, net of taxes | $ | 131 | $ | (608 | ) | $ | 133 | $ | (2,397 | ) | ||||||
Acquisitions_Tables
Acquisitions (Tables) | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Pro-forma Consolidated Results of Operations | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenues | $ | 181,204 | $ | 170,457 | $ | 373,436 | $ | 343,804 | ||||||||
Earnings from continuing operations attributable to II-VI Incorporated | 10,912 | 10,032 | 25,493 | 16,272 | ||||||||||||
Basic earnings per share from continuing operations attributable to II-VI Incorporated | 0.17 | 0.16 | 0.41 | 0.26 | ||||||||||||
Diluted earnings per share from continuing operations attributable to II-VI Incorporated | 0.17 | 0.16 | 0.4 | 0.25 | ||||||||||||
Oclaro's Fiber Amplifier And Micro Optics Business | ' | |||||||||||||||
Summary of Purchase Price | ' | |||||||||||||||
Net cash paid at acquisition date | $ | 79,600 | ||||||||||||||
Cash previously paid | 5,000 | |||||||||||||||
Holdback amount recorded in Other liabilities | 4,000 | |||||||||||||||
Purchase price | $ | 88,600 | ||||||||||||||
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed at Date of Acquisition | ' | |||||||||||||||
The following table presents the preliminary allocation of the purchase price of the assets acquired at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of Network Solutions during fiscal year 2014 ($000): | ||||||||||||||||
Assets | ||||||||||||||||
Inventories | $ | 11,314 | ||||||||||||||
Property, plant & equipment | 20,546 | |||||||||||||||
Intangible assets | 28,795 | |||||||||||||||
Goodwill | 27,945 | |||||||||||||||
Total assets acquired | $ | 88,600 | ||||||||||||||
Oclaro Incorporated | ' | |||||||||||||||
Summary of Purchase Price | ' | |||||||||||||||
Net cash paid at acquisition date | $ | 90,601 | ||||||||||||||
Holdback amount recorded in Other accrued liabilities | 2,000 | |||||||||||||||
Holdback amount recorded in Other liabilities | 6,000 | |||||||||||||||
Purchase price | $ | 98,601 | ||||||||||||||
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed at Date of Acquisition | ' | |||||||||||||||
The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of Laser Enterprise during fiscal year 2014 ($000): | ||||||||||||||||
Assets | ||||||||||||||||
Inventories | $ | 26,071 | ||||||||||||||
Prepaid and other assets | 1,963 | |||||||||||||||
Deferred income taxes | 2,371 | |||||||||||||||
Property, plant & equipment | 28,068 | |||||||||||||||
Intangible assets | 32,593 | |||||||||||||||
Goodwill | 39,206 | |||||||||||||||
Total assets acquired | $ | 130,272 | ||||||||||||||
Liabilities | ||||||||||||||||
Accounts payable | $ | 2,214 | ||||||||||||||
Deferred income taxes | 13,467 | |||||||||||||||
Accrued income taxes | 2,714 | |||||||||||||||
Other accrued liabilities | 13,276 | |||||||||||||||
Total liabilities assumed | $ | 31,671 | ||||||||||||||
Net assets acquired | $ | 98,601 | ||||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Components of Inventories | ' | |||||||
The components of inventories were as follows ($000): | ||||||||
December 31, | June 30, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 67,101 | $ | 59,290 | ||||
Work in progress | 58,637 | 43,895 | ||||||
Finished goods | 51,398 | 38,674 | ||||||
$ | 177,136 | $ | 141,859 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment | ' | |||||||
Property, plant and equipment consists of the following ($000): | ||||||||
December 31, | June 30, | |||||||
2013 | 2013 | |||||||
Land and land improvements | $ | 2,381 | $ | 2,236 | ||||
Buildings and improvements | 96,532 | 87,189 | ||||||
Machinery and equipment | 340,470 | 276,802 | ||||||
Construction in progress | 11,834 | 10,831 | ||||||
451,217 | 377,058 | |||||||
Less accumulated depreciation | (225,625 | ) | (206,386 | ) | ||||
$ | 225,592 | $ | 170,672 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
Changes in the carrying amount of goodwill are as follows ($000): | ||||||||||||||||||||||||
Six Months Ended December 31, 2013 | ||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Total | |||||||||||||||||||
Balance-beginning of period | $ | 9,677 | $ | 60,269 | $ | 30,712 | $ | 22,694 | $ | - | $ | 123,352 | ||||||||||||
Goodwill acquired | - | - | - | - | 67,151 | 67,151 | ||||||||||||||||||
Goodwill adjustment | - | - | - | (516 | ) | - | (516 | ) | ||||||||||||||||
Foreign currency translation | 94 | 444 | - | - | - | 538 | ||||||||||||||||||
Balance-end of period | $ | 9,771 | $ | 60,713 | $ | 30,712 | $ | 22,178 | $ | 67,151 | $ | 190,525 | ||||||||||||
Gross Carrying Amount and Accumulated Amortization | ' | |||||||||||||||||||||||
The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of December 31, 2013 and June 30, 2013 was as follows ($000): | ||||||||||||||||||||||||
31-Dec-13 | 30-Jun-13 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | |||||||||||||||||||
Technology and Patents | $ | 68,128 | $ | (12,797 | ) | $ | 55,331 | $ | 39,659 | $ | (10,455 | ) | $ | 29,204 | ||||||||||
Trademarks | 17,902 | (1,001 | ) | 16,901 | 17,855 | (963 | ) | 16,892 | ||||||||||||||||
Customer Lists | 84,943 | (15,494 | ) | 69,449 | 52,614 | (12,189 | ) | 40,425 | ||||||||||||||||
Other | 2,532 | (1,466 | ) | 1,066 | 1,580 | (1,400 | ) | 180 | ||||||||||||||||
Total | $ | 173,505 | $ | (30,758 | ) | $ | 142,747 | $ | 111,708 | $ | (25,007 | ) | $ | 86,701 | ||||||||||
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years | ' | |||||||||||||||||||||||
At December 31, 2013, the estimated amortization expense for existing intangible assets for each of the five succeeding fiscal years is as follows ($000): | ||||||||||||||||||||||||
Year Ending June 30, | ||||||||||||||||||||||||
Remaining 2014 | $ | 7,038 | ||||||||||||||||||||||
2015 | 13,499 | |||||||||||||||||||||||
2016 | 13,432 | |||||||||||||||||||||||
2017 | 13,423 | |||||||||||||||||||||||
2018 | 12,947 | |||||||||||||||||||||||
Debt_Tables
Debt (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2013 | |||||||||||||||||
Components of Debt | ' | ||||||||||||||||
The components of debt for the periods indicated were as follows ($000): | |||||||||||||||||
December 31, | June 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
Line of credit, interest at LIBOR, as defined, plus 1.50% and 1.25%, respectively | $ | 185,000 | $ | 111,000 | |||||||||||||
Term loan, interest at LIBOR, as defined, plus 1.25% | 95,000 | - | |||||||||||||||
Yen denominated line of credit, interest at LIBOR, as defined, plus 1.50% and 1.25%, respectively | 2,858 | 3,036 | |||||||||||||||
Total debt | 282,858 | 114,036 | |||||||||||||||
Current portion of long-term debt | (20,000 | ) | - | ||||||||||||||
Long-term debt, less current portion | $ | 262,858 | $ | 114,036 | |||||||||||||
Remaining Annual Amounts of Principal Payments | ' | ||||||||||||||||
Remaining annual principal payments under the Company’s existing credit facilities as of December 31, 2013 were as follows: | |||||||||||||||||
U.S. | |||||||||||||||||
Dollar | |||||||||||||||||
Term | Yen Line | Line of | |||||||||||||||
Period | Loan | of Credit | Credit | Total | |||||||||||||
Year 1 | $ | 20,000 | $ | - | $ | - | $ | 20,000 | |||||||||
Year 2 | 20,000 | - | - | 20,000 | |||||||||||||
Year 3 | 20,000 | 2,858 | - | 22,858 | |||||||||||||
Year 4 | 20,000 | - | - | 20,000 | |||||||||||||
Year 5 | 15,000 | - | 185,000 | 200,000 | |||||||||||||
Total | $ | 95,000 | $ | 2,858 | $ | 185,000 | $ | 282,858 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Computation of Earnings Per Share | ' | |||||||||||||||
The following table sets forth the computation of earnings per share attributable to II-VI Incorporated for the periods indicated. Weighted average shares issuable upon the exercises of stock options and the release of performance and restricted shares that were not included in the calculation were approximately 452,000 and 378,000, respectively, for the three and six months ended December 31, 2013, and 450,000 and 433,000, respectively, for the three and six months ended December 31, 2012, because they were anti-dilutive ($000 except per share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings from continuing operations attributable to II-VI Incorporated | $ | 7,438 | $ | 12,808 | $ | 17,130 | $ | 27,315 | ||||||||
Earnings (loss) from discontinued operation | 131 | (608 | ) | 133 | (2,397 | ) | ||||||||||
Net earnings attributable to II-VI Incorporated | $ | 7,569 | $ | 12,200 | $ | 17,263 | $ | 24,918 | ||||||||
Divided by: | ||||||||||||||||
Weighted average shares | 62,563 | 62,580 | 62,471 | 62,683 | ||||||||||||
Basic earnings (loss) attributable to II-VI Incorporated per common share: | ||||||||||||||||
Continuing operations | $ | 0.12 | $ | 0.2 | $ | 0.27 | $ | 0.44 | ||||||||
Discontinued operation | $ | - | $ | (0.01 | ) | $ | - | $ | (0.04 | ) | ||||||
Consolidated | $ | 0.12 | $ | 0.19 | $ | 0.28 | $ | 0.4 | ||||||||
Earnings from continuing operations attributable to II-VI Incorporated | $ | 7,438 | $ | 12,808 | $ | 17,130 | $ | 27,315 | ||||||||
Earnings (loss) from discontinued operation | 131 | (608 | ) | 133 | (2,397 | ) | ||||||||||
Net earnings attributable to II-VI Incorporated | $ | 7,569 | $ | 12,200 | $ | 17,263 | $ | 24,918 | ||||||||
Divided by: | ||||||||||||||||
Weighted average shares | 62,563 | 62,580 | 62,471 | 62,683 | ||||||||||||
Dilutive effect of common stock equivalents | 1,372 | 1,442 | 1,470 | 1,427 | ||||||||||||
Diluted weighted average common shares | 63,935 | 64,022 | 63,941 | 64,110 | ||||||||||||
Diluted earnings (loss) attributable to II-VI Incorporated per common share: | ||||||||||||||||
Continuing operations | $ | 0.12 | $ | 0.2 | $ | 0.27 | $ | 0.43 | ||||||||
Discontinued operation | $ | - | $ | (0.01 | ) | $ | - | $ | (0.04 | ) | ||||||
Consolidated | $ | 0.12 | $ | 0.19 | $ | 0.27 | $ | 0.39 | ||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Financial Information of Company's Operation by Segment | ' | |||||||||||||||||||||||||||
The following tables summarize selected financial information of the Company’s operations by segment ($000): | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Eliminations | Total | ||||||||||||||||||||||
Revenues | $ | 49,206 | $ | 35,857 | $ | 24,482 | $ | 28,834 | $ | 33,386 | $ | - | $ | 171,765 | ||||||||||||||
Inter-segment revenues | 189 | 483 | 1,439 | 1,838 | - | (3,949 | ) | - | ||||||||||||||||||||
Segment earnings (loss) | 7,847 | 2,530 | 3,469 | 2,520 | (6,798 | ) | - | 9,568 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | - | (1,169 | ) | ||||||||||||||||||||
Other income, net | - | - | - | - | - | - | 1,125 | |||||||||||||||||||||
Income taxes | - | - | - | - | - | - | (2,086 | ) | ||||||||||||||||||||
Earnings from discontinued operation | - | - | - | - | - | - | 131 | |||||||||||||||||||||
Net earnings | - | - | - | - | - | - | 7,569 | |||||||||||||||||||||
Depreciation and amortization | 2,212 | 4,137 | 2,086 | 2,512 | 3,450 | - | 14,397 | |||||||||||||||||||||
Segment assets | 255,688 | 309,594 | 126,355 | 177,167 | 247,357 | - | 1,116,161 | |||||||||||||||||||||
Expenditures for property, plant and equipment | 3,021 | 2,914 | 611 | 719 | 451 | - | 7,716 | |||||||||||||||||||||
Investment | - | - | - | 11,581 | - | - | 11,581 | |||||||||||||||||||||
Goodwill | 9,771 | 60,713 | 30,712 | 22,178 | 67,151 | - | 190,525 | |||||||||||||||||||||
Three Months Ended December 31, 2012 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
Revenues | $ | 45,410 | $ | 36,996 | $ | 20,578 | $ | 22,123 | $ | - | $ | 125,107 | ||||||||||||||||
Inter-segment revenues | 651 | 636 | 798 | 1,376 | (3,461 | ) | - | |||||||||||||||||||||
Segment earnings (loss) | 10,532 | 5,141 | (542 | ) | 337 | - | 15,468 | |||||||||||||||||||||
Interest expense | - | - | - | - | - | (223 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 4,551 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (6,721 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (608 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 12,467 | ||||||||||||||||||||||
Depreciation and amortization | 2,168 | 4,385 | 1,554 | 2,022 | - | 10,129 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 1,448 | 2,558 | 660 | 2,566 | - | 7,232 | ||||||||||||||||||||||
Six Months Ended December 31, 2013 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Eliminations | Total | ||||||||||||||||||||||
Revenues | $ | 101,807 | $ | 75,744 | $ | 50,754 | $ | 55,312 | $ | 38,168 | $ | - | $ | 321,785 | ||||||||||||||
Inter-segment revenues | 463 | 768 | 3,310 | 3,358 | - | (7,899 | ) | - | ||||||||||||||||||||
Segment earnings (loss) | 18,691 | 5,619 | 6,877 | 2,834 | (10,982 | ) | - | 23,039 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | - | (1,652 | ) | ||||||||||||||||||||
Other income, net | - | - | - | - | - | - | 1,072 | |||||||||||||||||||||
Income taxes | - | - | - | - | - | - | (5,329 | ) | ||||||||||||||||||||
Earnings from discontinued operation | - | - | - | - | - | - | 133 | |||||||||||||||||||||
Net earnings | - | - | - | - | - | - | 17,263 | |||||||||||||||||||||
Depreciation and amortization | 4,346 | 8,748 | 4,165 | 4,999 | 3,975 | - | 26,233 | |||||||||||||||||||||
Expenditures for property, plant and equipment | 4,912 | 5,442 | 1,739 | 1,550 | 646 | - | 14,289 | |||||||||||||||||||||
Six Months Ended December 31, 2012 | ||||||||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
Revenues | $ | 96,966 | $ | 77,642 | $ | 40,219 | $ | 38,278 | $ | - | $ | 253,105 | ||||||||||||||||
Inter-segment revenues | 1,151 | 968 | 2,338 | 2,560 | (7,017 | ) | - | |||||||||||||||||||||
Segment earnings (loss) | 22,374 | 12,863 | (826 | ) | (485 | ) | - | 33,926 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | (259 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 5,312 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (10,983 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (2,397 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 25,599 | ||||||||||||||||||||||
Depreciation and amortization | 4,232 | 8,672 | 3,007 | 3,256 | - | 19,167 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 2,588 | 4,203 | 1,973 | 4,380 | - | 13,144 | ||||||||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Share-Based Compensation Expense by Award Type | ' | |||||||||||||||
Share-based compensation expense is allocated approximately 20% to cost of goods sold and 80% to selling, general and administrative expense based on the employee classification of the grantees. Share-based compensation expense for the periods indicated was as follows ($000): | ||||||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||
Stock Options and Cash-Based Stock Appreciation Rights | $ | 1,416 | $ | 1,175 | $ | 3,376 | $ | 2,764 | ||||||||
Restricted Share Awards and Cash-Based Restricted Share Unit Awards | 1,095 | 1,035 | 2,609 | 2,096 | ||||||||||||
Performance Share Awards and Cash-Based Performance Share Unit Awards | 738 | 1,051 | 1,700 | 2,027 | ||||||||||||
$ | 3,249 | $ | 3,261 | $ | 7,685 | $ | 6,887 | |||||||||
Schedule of Fair Value Assumptions under Stock Option Plan | ' | |||||||||||||||
The Company utilizes the Black-Scholes valuation model for estimating the fair value of these awards. During the three months ended December 31, 2013 and 2012, the weighted average fair values of awards granted under the Plan were $6.40 and $8.19 per award, respectively, and $8.68 and $8.45, respectively, during the six months ended December 31, 2013 and 2012, using the following assumptions: | ||||||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||
Risk-free interest rate | 1.25 | % | 0.95 | % | 1.75 | % | 0.94 | % | ||||||||
Expected volatility | 46 | % | 48 | % | 47 | % | 49 | % | ||||||||
Expected life of options | 4.6 years | 6.0 years | 5.7 years | 5.7 years | ||||||||||||
Dividend yield | None | None | None | None | ||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis | ' | |||||||||||||||
The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis for the periods presented ($000): | ||||||||||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | ||||||||||||||||
Markets | Significant | |||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Foreign currency forward contracts | $ | 301 | $ | - | $ | 301 | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Contingent earnout arrangement | $ | 1,100 | $ | - | $ | - | $ | 1,100 | ||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | ||||||||||||||||
Markets | Significant | |||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
30-Jun-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | 23 | $ | - | $ | 23 | $ | - | ||||||||
Contingent earnout arrangement | $ | 3,300 | $ | - | $ | - | $ | 3,300 | ||||||||
Reconciliation of Beginning and Ending Fair-Value Measurements of Level Three Contingent Earnout Arrangement Related to Acquisition of LightWorks | ' | |||||||||||||||
The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s Level 3 contingent earnout arrangement related to the acquisition of LightWorks ($000): | ||||||||||||||||
Significant | ||||||||||||||||
Unobservable Inputs | ||||||||||||||||
(Level 3) | ||||||||||||||||
Balance at July 1, 2013 | $ | 3,300 | ||||||||||||||
Payments | (2,200 | ) | ||||||||||||||
Changes in fair value | - | |||||||||||||||
Balance at December 31, 2013 | $ | 1,100 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||
Dec. 31, 2013 | ||||
Schedule of Change in Carrying Value of Warranty Reserve | ' | |||
The Company records a warranty reserve as a charge against earnings based on a percentage of sales utilizing actual warranty claims over the last twelve months. The following table summarizes the change in the carrying value of the Company’s warranty reserve, which is a component of Other accrued liabilities in the Company’s Condensed Consolidated Balance Sheets, as of and for the six months ended December 31, 2013 ($000): | ||||
Six Months Ended | ||||
31-Dec-13 | ||||
Balance-beginning of period | $ | 1,661 | ||
Payments made during the period | (974 | ) | ||
Additional warranty liability recorded during the period | 887 | |||
Warranty liability assumed through acquisitions | 1,173 | |||
Balance-end of period | $ | 2,747 | ||
PostRetirement_Benefits_Tables
Post-Retirement Benefits (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Net Periodic Pension Costs | ' | ||||||||
In connection with the Company’s acquisition of Laser Enterprise, the Company assumed the existing pension plan (the “Swiss Plan”) covering employees of the Zurich, Switzerland subsidiary which included an $8.9 million unfunded pension liability recorded as part of the preliminary purchase price allocation of Laser Enterprise. This unfunded pension liability is recorded in Other liabilities in the Condensed Consolidated Balance Sheet at December 31, 2013. Net periodic pension costs associated with the Swiss Plan for the three and six months ended December 31, 2013 included the following ($000): | |||||||||
Three Months | Six Months | ||||||||
Ended | Ended | ||||||||
December 31, | December 31, | ||||||||
2013 | 2013 | ||||||||
Service cost | $ | 835 | $ | 1,002 | |||||
Interest cost | 201 | 242 | |||||||
Expected return on plan assets | (331 | ) | (397 | ) | |||||
Net amortization | - | - | |||||||
Net periodic pension costs | $ | 705 | $ | 847 | |||||
Capital_Lease_Tables
Capital Lease (Tables) | 6 Months Ended | |||
Dec. 31, 2013 | ||||
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease | ' | |||
During the three months ended December 31, 2013, the Company's HIGHYAG subsidiary entered into a capital lease related to a building in Germany. The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): | ||||
Fiscal Year Ending: | Amount | |||
2014 (remaining) | $ | 631 | ||
2015 | 1,081 | |||
2016 | 1,081 | |||
2017 | 1,081 | |||
2018 | 1,081 | |||
Thereafter | 13,430 | |||
Total minimum lease payments | 18,385 | |||
Less amount representing interest | 6,380 | |||
Present value of capitalized payments | 12,005 | |||
Less: current portion | 445 | |||
Long-term portion | $ | 11,560 | ||
Summary_of_Revenues_and_Earnin
Summary of Revenues and Earnings (Losses) of Discontinued Operation (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | ' | ' | ' | ' |
Earnings from discontinued operation, net of taxes | $131 | ($608) | $133 | ($2,397) |
Tellurium product line | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | ' | ' | ' | ' |
Revenues | 697 | 782 | 1,849 | 5,076 |
Earnings (loss) from discontinued operation before income taxes | 131 | -533 | 133 | -2,397 |
Income tax benefit (expense) | ' | -75 | ' | ' |
Earnings from discontinued operation, net of taxes | $131 | ($608) | $133 | ($2,397) |
Summary_of_Purchase_Price_Deta
Summary of Purchase Price (Detail) (USD $) | 6 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | Sep. 12, 2013 | Sep. 30, 2013 |
Oclaro's Fiber Amplifier And Micro Optics Business | Oclaro's Fiber Amplifier And Micro Optics Business | Oclaro Incorporated | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Net cash paid at acquisition date | $175,201 | $126,397 | $79,600 | $5,000 | $90,601 |
Purchase of business - holdback amount recorded in other liabilities | ' | ' | 4,000 | ' | 6,000 |
Purchase price | ' | ' | 88,600 | ' | 98,601 |
Purchase of business - holdback amount recorded in other accrued liabilities | ' | ' | ' | ' | $2,000 |
Allocation_of_Purchase_Price_o
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Nov. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Oclaro's Fiber Amplifier And Micro Optics Business | Oclaro Incorporated | ||
Assets | ' | ' | ' | ' |
Inventories | ' | ' | $11,314 | $26,071 |
Prepaid and other assets | ' | ' | ' | 1,963 |
Deferred income taxes | ' | ' | ' | 2,371 |
Property, plant & equipment | ' | ' | 20,546 | 28,068 |
Intangible assets | ' | ' | 28,795 | 32,593 |
Goodwill | 190,525 | 123,352 | 27,945 | 39,206 |
Total assets acquired | ' | ' | 88,600 | 130,272 |
Liabilities | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | 2,214 |
Deferred income taxes | ' | ' | ' | 13,467 |
Accrued income taxes | ' | ' | ' | 2,714 |
Other accrued liabilities | ' | ' | ' | 13,276 |
Total liabilities assumed | ' | ' | ' | 31,671 |
Net assets acquired | ' | ' | ' | $98,601 |
Proforma_Consolidated_Results_
Pro-forma Consolidated Results of Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ' | ' | ' | ' |
Net revenues | $181,204 | $170,457 | $373,436 | $343,804 |
Earnings from continuing operations attributable to II-VI Incorporated | $10,912 | $10,032 | $25,493 | $16,272 |
Basic earnings per share from continuing operations attributable to II-VI Incorporated | $0.17 | $0.16 | $0.41 | $0.26 |
Diluted earnings per share from continuing operations attributable to II-VI Incorporated | $0.17 | $0.16 | $0.40 | $0.25 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 6 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Nov. 30, 2013 | Sep. 12, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Oclaro's Fiber Amplifier And Micro Optics Business | Oclaro's Fiber Amplifier And Micro Optics Business | Oclaro's Fiber Amplifier And Micro Optics Business | Oclaro Incorporated | Oclaro Incorporated | Oclaro Incorporated | Acquisitions Of Two Oclaro | Acquisitions Of Two Oclaro | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | $88,600,000 | ' | ' | $98,601,000 | ' | ' | ' | ' |
Net cash paid at acquisition date | 175,201,000 | 126,397,000 | ' | 79,600,000 | 5,000,000 | ' | 90,601,000 | ' | ' | ' | ' |
Purchase of business - holdback amount recorded in other liabilities | ' | ' | ' | 4,000,000 | ' | ' | 6,000,000 | ' | ' | ' | ' |
Goodwill | 190,525,000 | ' | 123,352,000 | 27,945,000 | ' | ' | 39,206,000 | ' | ' | ' | ' |
Business acquisition, revenue of acquired entity | ' | ' | ' | ' | ' | 13,200,000 | ' | 20,200,000 | 25,000,000 | ' | ' |
Business acquisition, earnings of acquired entity | ' | ' | ' | ' | ' | 1,400,000 | ' | 3,300,000 | 4,000,000 | ' | ' |
Business acquisition, cash acquired | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' |
Purchase of business - holdback amount recorded in other accrued liabilities | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Business acquisition, transaction costs | ' | ' | ' | ' | ' | ' | ' | $300,000 | $3,700,000 | $300,000 | $3,700,000 |
Investment_Additional_Informat
Investment - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Schedule Of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Total carrying value of investment | $11,581 | ' | $11,581 | ' | ' |
Pro-rata share of earnings | ' | ' | 378 | 593 | ' |
Guangdong Fuxin Electronic Technology | ' | ' | ' | ' | ' |
Schedule Of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | 20.20% | ' | 20.20% | ' | ' |
Total carrying value of investment | 11,600 | ' | 11,600 | ' | 11,200 |
Pro-rata share of earnings | $100 | $200 | $400 | $600 | ' |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $67,101 | $59,290 |
Work in progress | 58,637 | 43,895 |
Finished goods | 51,398 | 38,674 |
Inventories, Total | $177,136 | $141,859 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Land and land improvements | $2,381 | $2,236 |
Buildings and improvements | 96,532 | 87,189 |
Machinery and equipment | 340,470 | 276,802 |
Construction in progress | 11,834 | 10,831 |
Property, Plant and Equipment, gross | 451,217 | 377,058 |
Less accumulated depreciation | -225,625 | -206,386 |
Property, Plant and Equipment, net | $225,592 | $170,672 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Goodwill [Line Items] | ' |
Balance-beginning of period | $123,352 |
Goodwill acquired | 67,151 |
Goodwill adjustment | -516 |
Foreign currency translation | 538 |
Balance-end of period | 190,525 |
Infrared Optics | ' |
Goodwill [Line Items] | ' |
Balance-beginning of period | 9,677 |
Goodwill acquired | 0 |
Goodwill adjustment | 0 |
Foreign currency translation | 94 |
Balance-end of period | 9,771 |
Near-Infrared Optics | ' |
Goodwill [Line Items] | ' |
Balance-beginning of period | 60,269 |
Goodwill acquired | 0 |
Goodwill adjustment | 0 |
Foreign currency translation | 444 |
Balance-end of period | 60,713 |
Military & Materials | ' |
Goodwill [Line Items] | ' |
Balance-beginning of period | 30,712 |
Goodwill acquired | 0 |
Goodwill adjustment | 0 |
Foreign currency translation | 0 |
Balance-end of period | 30,712 |
Advanced Products Group | ' |
Goodwill [Line Items] | ' |
Balance-beginning of period | 22,694 |
Goodwill acquired | 0 |
Goodwill adjustment | -516 |
Foreign currency translation | 0 |
Balance-end of period | 22,178 |
Active Optical Products | ' |
Goodwill [Line Items] | ' |
Balance-beginning of period | 0 |
Goodwill acquired | 67,151 |
Goodwill adjustment | 0 |
Foreign currency translation | 0 |
Balance-end of period | $67,151 |
Gross_Carrying_Amount_and_Accu
Gross Carrying Amount and Accumulated Amortization (Detail) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $173,505 | $111,708 |
Accumulated Amortization | -30,758 | -25,007 |
Net Book Value | 142,747 | 86,701 |
Technology and Patents | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 68,128 | 39,659 |
Accumulated Amortization | -12,797 | -10,455 |
Net Book Value | 55,331 | 29,204 |
Trademarks | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 17,902 | 17,855 |
Accumulated Amortization | -1,001 | -963 |
Net Book Value | 16,901 | 16,892 |
Customer Lists | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 84,943 | 52,614 |
Accumulated Amortization | -15,494 | -12,189 |
Net Book Value | 69,449 | 40,425 |
Other | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 2,532 | 1,580 |
Accumulated Amortization | -1,466 | -1,400 |
Net Book Value | $1,066 | $180 |
Estimated_Amortization_Expense
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets [Line Items] | ' |
Remaining 2014 | $7,038 |
2015 | 13,499 |
2016 | 13,432 |
2017 | 13,423 |
2018 | $12,947 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Customer Lists | Customer Lists | Customer Lists | Patents | Patents | Patents | Trade Names | Oclaro Incorporated | Oclaro Incorporated | Oclaro Incorporated | Oclaro Incorporated | M Cubed | |||||
Minimum | Maximum | Minimum | Maximum | Technology and Patents | Customer Lists | Noncompete Agreements | ||||||||||
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, intangible assets recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32,593,000 | $28,300,000 | $32,100,000 | $1,000,000 | ' |
Amortization expense recorded on intangible assets | 3,400,000 | 1,300,000 | 5,600,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period of patents and customer lists, in months | ' | ' | ' | ' | '122 months | '120 months | '192 months | '121 months | '120 months | '240 months | ' | ' | ' | ' | ' | ' |
Carrying amount of trade names acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,400,000 | ' | ' | ' | ' | ' |
Goodwill adjustment | ' | ' | ($516,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 |
Components_of_Debt_Detail
Components of Debt (Detail) (USD $) | Dec. 31, 2013 | Sep. 10, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Line of credit, interest at LIBOR, as defined, plus 1.50% and 1.25%, respectively | $185,000 | ' | $111,000 |
Term loan, interest at LIBOR, as defined, plus 1.25% | 95,000 | 100,000 | ' |
Yen denominated line of credit, interest at LIBOR, as defined, plus 1.50% and 1.25%, respectively | 2,858 | ' | 3,036 |
Total debt | 282,858 | ' | 114,036 |
Current portion of long-term debt | -20,000 | ' | ' |
Long-term debt, less current portion | $262,858 | ' | $114,036 |
Components_of_Debt_Parenthetic
Components of Debt (Parenthetical) (Detail) (London Interbank Offered Rate (LIBOR)) | 6 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, rate added on variable rate | 1.50% | 1.25% |
Term Loans | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, rate added on variable rate | 1.25% | ' |
Yen denominated line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, rate added on variable rate | 1.50% | 1.25% |
Remaining_Annual_Amounts_of_Pr
Remaining Annual Amounts of Principal Payments of Credit Facility (Detail) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Year 1 | $20,000 | ' |
Year 2 | 20,000 | ' |
Year 3 | 22,858 | ' |
Year 4 | 20,000 | ' |
Year 5 | 200,000 | ' |
Total debt | 282,858 | 114,036 |
Term Loans | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Year 1 | 20,000 | ' |
Year 2 | 20,000 | ' |
Year 3 | 20,000 | ' |
Year 4 | 20,000 | ' |
Year 5 | 15,000 | ' |
Total debt | 95,000 | ' |
Yen denominated line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Year 1 | 0 | ' |
Year 2 | 0 | ' |
Year 3 | 2,858 | ' |
Year 4 | 0 | ' |
Year 5 | 0 | ' |
Total debt | 2,858 | ' |
Line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Year 1 | 0 | ' |
Year 2 | 0 | ' |
Year 3 | 0 | ' |
Year 4 | 0 | ' |
Year 5 | 185,000 | ' |
Total debt | $185,000 | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||
Sep. 10, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 10, 2013 | Sep. 10, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 10, 2013 | Sep. 10, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | JPY (¥) | Revolving Credit Facility | Revolving Credit Facility | Yen denominated line of credit | Yen Loan | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | ||
USD ($) | Maximum | JPY (¥) | JPY (¥) | Revolving Credit Facility | Revolving Credit Facility | Yen denominated line of credit | Yen denominated line of credit | Yen denominated line of credit | Yen denominated line of credit | ||||||
USD ($) | Maximum | Minimum | Maximum | Minimum | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | ' | ' | ' | ' | ' | $225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, prior borrowing capacity | ' | ' | ' | ' | ' | 140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan | 100,000,000 | 95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan, quarterly principal Payment | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan, first quarterly principal payment commencement date | 1-Oct-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, optional additional borrowing amount | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, term | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, month and year of maturity | ' | ' | ' | ' | ' | '2018-09 | ' | '2016-06 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, rate added on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 0.75% | 1.50% | 1.25% | 1.50% | 0.63% |
Financing cost incurred | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' |
Available credit under lines of credit | ' | 40,500,000 | ' | 29,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total outstanding letters of credit | ' | $1,500,000 | ' | $1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate of total borrowings | ' | 1.70% | 1.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 23.70% | 28.20% | ' |
U.S. statutory rate | 35.00% | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | $3.60 | ' | $3.30 |
Computation_of_Earnings_Per_Sh
Computation of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Line Items] | ' | ' | ' | ' |
Earnings from continuing operations attributable to II-VI Incorporated | $7,438 | $12,808 | $17,130 | $27,315 |
Earnings (loss) from discontinued operation | 131 | -608 | 133 | -2,397 |
Net Earnings Attributable to II-VI Incorporated | $7,569 | $12,200 | $17,263 | $24,918 |
Weighted average shares | 62,563 | 62,580 | 62,471 | 62,683 |
Basic earnings (loss) attributable to II-VI Incorporated per common share: | ' | ' | ' | ' |
Continuing Operations | $0.12 | $0.20 | $0.27 | $0.44 |
Discontinued Operation | $0 | ($0.01) | $0 | ($0.04) |
Consolidated | $0.12 | $0.19 | $0.28 | $0.40 |
Dilutive effect of common stock equivalents | 1,372 | 1,442 | 1,470 | 1,427 |
Diluted weighted average common shares | 63,935 | 64,022 | 63,941 | 64,110 |
Diluted earnings (loss) attributable to II-VI Incorporated per common share: | ' | ' | ' | ' |
Continuing Operations | $0.12 | $0.20 | $0.27 | $0.43 |
Discontinued Operation | $0 | ($0.01) | $0 | ($0.04) |
Consolidated | $0.12 | $0.19 | $0.27 | $0.39 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average Shares issuable upon the exercises of stock options excluded from the dilutive share calculation | 452,000 | 450,000 | 378,000 | 433,000 |
Financial_Information_of_Compa
Financial Information of Company's Operation by Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' |
Revenues | $171,765 | $125,107 | $321,785 | $253,105 | ' |
Inter-segment revenues | 0 | 0 | 0 | 0 | ' |
Segment earnings (loss) | 9,568 | 15,468 | 23,039 | 33,926 | ' |
Interest expense | -1,169 | -223 | -1,652 | -259 | ' |
Other income, net | 1,125 | 4,551 | 1,072 | 5,312 | ' |
Income taxes | -2,086 | -6,721 | -5,329 | -10,983 | ' |
Earnings (loss) from discontinued operation | 131 | -608 | 133 | -2,397 | ' |
Net earnings | 7,569 | 12,467 | 17,263 | 25,599 | ' |
Depreciation and amortization | 14,397 | 10,129 | 26,233 | 19,167 | ' |
Segment assets | 1,116,161 | ' | 1,116,161 | ' | 863,802 |
Expenditures for property, plant and equipment | 7,716 | 7,232 | 14,289 | 13,144 | ' |
Investment | 11,581 | ' | 11,581 | ' | ' |
Goodwill | 190,525 | ' | 190,525 | ' | ' |
Eliminations | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 | ' |
Inter-segment revenues | -3,949 | -3,461 | -7,899 | -7,017 | ' |
Segment earnings (loss) | 0 | 0 | 0 | 0 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Other income, net | 0 | 0 | 0 | 0 | ' |
Income taxes | 0 | 0 | 0 | 0 | ' |
Earnings (loss) from discontinued operation | 0 | 0 | 0 | 0 | ' |
Net earnings | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 0 | 0 | 0 | 0 | ' |
Segment assets | 0 | ' | 0 | ' | ' |
Expenditures for property, plant and equipment | 0 | 0 | 0 | 0 | ' |
Investment | 0 | ' | 0 | ' | ' |
Goodwill | 0 | ' | 0 | ' | ' |
Infrared Optics | Operating Segments | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' |
Revenues | 49,206 | 45,410 | 101,807 | 96,966 | ' |
Inter-segment revenues | 189 | 651 | 463 | 1,151 | ' |
Segment earnings (loss) | 7,847 | 10,532 | 18,691 | 22,374 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Other income, net | 0 | 0 | 0 | 0 | ' |
Income taxes | 0 | 0 | 0 | 0 | ' |
Earnings (loss) from discontinued operation | 0 | 0 | 0 | 0 | ' |
Net earnings | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 2,212 | 2,168 | 4,346 | 4,232 | ' |
Segment assets | 255,688 | ' | 255,688 | ' | ' |
Expenditures for property, plant and equipment | 3,021 | 1,448 | 4,912 | 2,588 | ' |
Investment | 0 | ' | 0 | ' | ' |
Goodwill | 9,771 | ' | 9,771 | ' | ' |
Near-Infrared Optics | Operating Segments | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' |
Revenues | 35,857 | 36,996 | 75,744 | 77,642 | ' |
Inter-segment revenues | 483 | 636 | 768 | 968 | ' |
Segment earnings (loss) | 2,530 | 5,141 | 5,619 | 12,863 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Other income, net | 0 | 0 | 0 | 0 | ' |
Income taxes | 0 | 0 | 0 | 0 | ' |
Earnings (loss) from discontinued operation | 0 | 0 | 0 | 0 | ' |
Net earnings | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 4,137 | 4,385 | 8,748 | 8,672 | ' |
Segment assets | 309,594 | ' | 309,594 | ' | ' |
Expenditures for property, plant and equipment | 2,914 | 2,558 | 5,442 | 4,203 | ' |
Investment | 0 | ' | 0 | ' | ' |
Goodwill | 60,713 | ' | 60,713 | ' | ' |
Military & Materials | Operating Segments | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' |
Revenues | 24,482 | 20,578 | 50,754 | 40,219 | ' |
Inter-segment revenues | 1,439 | 798 | 3,310 | 2,338 | ' |
Segment earnings (loss) | 3,469 | -542 | 6,877 | -826 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Other income, net | 0 | 0 | 0 | 0 | ' |
Income taxes | 0 | 0 | 0 | 0 | ' |
Earnings (loss) from discontinued operation | 0 | 0 | 0 | 0 | ' |
Net earnings | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 2,086 | 1,554 | 4,165 | 3,007 | ' |
Segment assets | 126,355 | ' | 126,355 | ' | ' |
Expenditures for property, plant and equipment | 611 | 660 | 1,739 | 1,973 | ' |
Investment | 0 | ' | 0 | ' | ' |
Goodwill | 30,712 | ' | 30,712 | ' | ' |
Advanced Products Group | Operating Segments | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' |
Revenues | 28,834 | 22,123 | 55,312 | 38,278 | ' |
Inter-segment revenues | 1,838 | 1,376 | 3,358 | 2,560 | ' |
Segment earnings (loss) | 2,520 | 337 | 2,834 | -485 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Other income, net | 0 | 0 | 0 | 0 | ' |
Income taxes | 0 | 0 | 0 | 0 | ' |
Earnings (loss) from discontinued operation | 0 | 0 | 0 | 0 | ' |
Net earnings | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 2,512 | 2,022 | 4,999 | 3,256 | ' |
Segment assets | 177,167 | ' | 177,167 | ' | ' |
Expenditures for property, plant and equipment | 719 | 2,566 | 1,550 | 4,380 | ' |
Investment | 11,581 | ' | 11,581 | ' | ' |
Goodwill | 22,178 | ' | 22,178 | ' | ' |
Active Optical Products | Operating Segments | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' |
Revenues | 33,386 | ' | 38,168 | ' | ' |
Inter-segment revenues | 0 | ' | 0 | ' | ' |
Segment earnings (loss) | -6,798 | ' | -10,982 | ' | ' |
Interest expense | 0 | ' | 0 | ' | ' |
Other income, net | 0 | ' | 0 | ' | ' |
Income taxes | 0 | ' | 0 | ' | ' |
Earnings (loss) from discontinued operation | 0 | ' | 0 | ' | ' |
Net earnings | 0 | ' | 0 | ' | ' |
Depreciation and amortization | 3,450 | ' | 3,975 | ' | ' |
Segment assets | 247,357 | ' | 247,357 | ' | ' |
Expenditures for property, plant and equipment | 451 | ' | 646 | ' | ' |
Investment | 0 | ' | 0 | ' | ' |
Goodwill | $67,151 | ' | $67,151 | ' | ' |
ShareBased_Compensation_Expens
Share-Based Compensation Expense by Award Type (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share based compensation expense | $3,249 | $3,261 | $7,685 | $6,887 |
Stock Options and Cash-Based Stock Appreciation Rights | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share based compensation expense | 1,416 | 1,175 | 3,376 | 2,764 |
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 | 1,095 | 1,035 | 2,609 | 2,096 |
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 | $738 | $1,051 | $1,700 | $2,027 |
Fair_Value_Assumptions_for_Sto
Fair Value Assumptions for Stock Option and Stock Appreciation Rights (Detail) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Option [Line Items] | ' | ' | ' | ' |
Risk-free interest rate | 1.25% | 0.95% | 1.75% | 0.94% |
Expected volatility | 46.00% | 48.00% | 47.00% | 49.00% |
Expected life of options | '4 years 7 months 6 days | '6 years | '5 years 8 months 12 days | '5 years 8 months 12 days |
Dividend yield | ' | ' | ' | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [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% | ' | ' | ' |
Stock Options and Cash-Based Stock Appreciation Rights | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Weighted-average fair values of stock options granted under the stock option Plan | $6.40 | $8.19 | $8.68 | $8.45 |
Share based compensation, estimated forfeiture percentage | ' | ' | 16.00% | ' |
Restricted Share Awards and Cash-Based Restricted Share Unit Awards | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share based compensation, estimated forfeiture percentage | ' | ' | 7.50% | ' |
Share based compensation, vesting period years | ' | ' | '3 years | ' |
Performance Stock and Performance Stock Unit | Minimum | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Performance share grant, period | ' | ' | '24 months | ' |
Performance Stock and Performance Stock Unit | Maximum | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Performance share grant, period | ' | ' | '48 months | ' |
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 $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Foreign currency forward contracts | $301 | ' |
Liabilities: | ' | ' |
Contingent earnout arrangement | 1,100 | 3,300 |
Foreign currency forward contracts | ' | 23 |
Fair Value, Inputs, Level 2 | ' | ' |
Assets: | ' | ' |
Foreign currency forward contracts | 301 | ' |
Liabilities: | ' | ' |
Contingent earnout arrangement | ' | ' |
Foreign currency forward contracts | ' | 23 |
Fair Value, Inputs, Level 3 | ' | ' |
Liabilities: | ' | ' |
Contingent earnout arrangement | $1,100 | $3,300 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Fair-Value Measurements of Level Three Contingent Earnout Arrangement Related to Acquisition of LightWorks (Detail) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Fair Value, Inputs, Level 3 | ||
Business Acquisition Contingent Consideration [Line Items] | ' | ' | ' |
Balance - beginning of period | $1,100 | $3,300 | $3,300 |
Payments | ' | ' | -2,200 |
Changes in fair value | ' | ' | ' |
Balance - end of period | $1,100 | $3,300 | $1,100 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Jul. 31, 2013 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Business acquisition, additional cash earnout opportunities | $4.20 | ' |
Fair value of earnout arrangement, probability | 55.00% | ' |
Business acquisition, total earnout payments | 2.2 | ' |
Business acquisition, percentage of earnout arrangement achieved | ' | 100.00% |
Business acquisition, fair value of remaining revenue earnout arrangement recorded in other accrued liabilities | $1.10 | ' |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Minimum | Maximum |
JPY (¥) | JPY (¥) | |||
Derivative [Line Items] | ' | ' | ' | ' |
Foreign currency forward exchange contracts, notional amount | $8 | $4.70 | ' | ' |
Foreign currency forward exchange contracts maturity amount | ' | ' | ¥ 180 | ¥ 220 |
Change_in_Caring_Value_of_Warr
Change in Caring Value of Warranty Reserve (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Contingencies And Commitments [Line Items] | ' |
Balance-beginning of period | $1,661 |
Payments made during the period | -974 |
Additional warranty liability recorded during the period | 887 |
Warranty liability assumed through acquisitions | 1,173 |
Balance-end of period | $2,747 |
Schedule_of_Net_Periodic_Pensi
Schedule of Net Periodic Pension Costs (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | $835 | $1,002 |
Interest cost | 201 | 242 |
Expected return on plan assets | -331 | -397 |
Net amortization | ' | ' |
Net periodic pension costs | $705 | $847 |
PostRetirement_Benefits_Additi
Post-Retirement Benefits - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Post-Retirement benefits contributions | $0.60 | $0.60 |
Post-Retirement benefits expected contributions for next year | ' | 1 |
Unfunded Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Pension liability | $8.90 | $8.90 |
Schedule_of_Future_Minimum_Lea
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Capital Leased Assets [Line Items] | ' |
2014 (remaining) | $631 |
2015 | 1,081 |
2016 | 1,081 |
2017 | 1,081 |
2018 | 1,081 |
Thereafter | 13,430 |
Total minimum lease payments | 18,385 |
Less amount representing interest | 6,380 |
Present value of capitalized payments | 12,005 |
Less: current portion | 445 |
Long-term portion | $11,560 |
Capital_Lease_Additional_Infor
Capital Lease - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Capital Leased Assets [Line Items] | ' |
Capitalized payments property plant and equipment | $12 |
Property plant and equipment depreciation expenses useful life of leases | '17 years |
Share_Repurchase_Program_Detai
Share Repurchase Program (Detail) (Subsequent Event, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 |
Subsequent Event | ' |
Equity Class Of Treasury Stock [Line Items] | ' |
Stock repurchase program, authorized amount | $20 |