Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Aug. 20, 2014 | Dec. 31, 2013 | |
Document And Entity Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'IIVI | ' | ' |
Entity Registrant Name | 'II-VI INC | ' | ' |
Entity Central Index Key | '0000820318 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 61,425,392 | ' |
Entity Public Float | ' | ' | $940,573,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $174,660 | $185,433 |
Accounts receivable - less allowance for doubtful accounts of $1,852 and $1,479, respectively | 136,723 | 107,173 |
Inventories | 165,873 | 141,859 |
Deferred income taxes | 11,118 | 10,794 |
Prepaid and refundable income taxes | 4,440 | 4,543 |
Prepaid and other current assets | 12,917 | 11,342 |
Total Current Assets | 505,731 | 461,144 |
Property, plant & equipment, net | 208,939 | 170,672 |
Goodwill | 196,145 | 123,352 |
Other intangible assets, net | 136,404 | 86,701 |
Investment | 11,589 | 11,203 |
Deferred income taxes | 4,038 | 2,696 |
Other assets | 9,080 | 8,034 |
Total Assets | 1,071,926 | 863,802 |
Current Liabilities | ' | ' |
Current portion of long-term debt | 20,000 | ' |
Accounts payable | 45,767 | 23,617 |
Accrued compensation and benefits | 32,461 | 28,315 |
Accrued income taxes payable | 4,584 | 7,697 |
Deferred income taxes | 732 | 110 |
Other accrued liabilities | 31,521 | 34,695 |
Total Current Liabilities | 135,065 | 94,434 |
Long-term debt | 221,960 | 114,036 |
Deferred income taxes | 7,440 | 4,095 |
Other liabilities | 32,418 | 15,129 |
Total Liabilities | 396,883 | 227,694 |
Shareholders' Equity | ' | ' |
Preferred stock, no par value; authorized - 5,000,000 shares; none issued | ' | ' |
Common stock, no par value; authorized - 300,000,000 shares; issued - 70,935,098 shares and 70,223,286 shares, respectively | 213,573 | 194,284 |
Accumulated other comprehensive income | 19,406 | 15,600 |
Retained earnings | 521,327 | 482,878 |
Shareholders' equity excluding treasury stock | 754,306 | 692,762 |
Treasury stock, at cost, 9,481,963 shares and 8,011,733 shares, respectively | -79,263 | -56,654 |
Total Shareholders' Equity | 675,043 | 636,108 |
Total Liabilities and Shareholders' Equity | $1,071,926 | $863,802 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $1,852 | $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 | 70,935,098 | 70,223,286 |
Treasury stock, shares | 9,481,963 | 8,011,733 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenues | ' | ' | ' |
Domestic | $240,534 | $241,045 | $214,822 |
International | 442,727 | 310,030 | 301,581 |
Total Revenues | 683,261 | 551,075 | 516,403 |
Costs, Expenses and Other Expense (Income) | ' | ' | ' |
Cost of goods sold | 456,545 | 347,558 | 315,056 |
Internal research and development | 42,523 | 22,689 | 21,410 |
Selling, general and administrative | 137,707 | 109,337 | 98,415 |
Interest expense | 4,479 | 1,160 | 212 |
Other expense (income), net | -3,634 | -7,155 | -7,168 |
Total Costs, Expenses, and Other Expense (Income) | 637,620 | 473,589 | 427,925 |
Earnings from Continuing Operations Before Income Taxes | 45,641 | 77,486 | 88,478 |
Income Taxes | 7,325 | 18,766 | 17,760 |
Earnings from Continuing Operations | 38,316 | 58,720 | 70,718 |
Earnings (loss) from Discontinued Operation, net of income taxes | 133 | -6,789 | -9,443 |
Net Earnings | 38,449 | 51,931 | 61,275 |
Less: Net Earnings Attributable to Redeemable Noncontrolling Interest | ' | 1,118 | 969 |
Net Earnings Attributable to II-VI Incorporated | $38,449 | $50,813 | $60,306 |
Basic earnings (loss) attributable to II-VI Incorporated per common share: | ' | ' | ' |
Continuing operations | $0.62 | $0.92 | $1.10 |
Discontinued operation | ' | ($0.11) | ($0.15) |
Consolidated | $0.62 | $0.81 | $0.96 |
Diluted earnings (loss) attributable to II-VI Incorporated per common share: | ' | ' | ' |
Continuing operations | $0.60 | $0.90 | $1.08 |
Discontinued operation | ' | ($0.11) | ($0.15) |
Consolidated | $0.60 | $0.80 | $0.94 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Net earnings | $38,449 | $51,931 | $61,275 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | 2,363 | 5,362 | -2,878 |
Pension adjustment, net of taxes of $387 | 1,443 | ' | ' |
Comprehensive income | 42,255 | 57,293 | 58,397 |
Less: Net Earnings Attributable to Redeemable Noncontrolling Interest | ' | 1,118 | 969 |
Other comprehensive income attributable to redeemable noncontrolling interest: | ' | ' | ' |
Foreign currency translation adjustments attributable to redeemable noncontrolling interest | ' | -295 | ' |
Comprehensive income attributable to redeemable noncontrolling interest | ' | 823 | 969 |
Comprehensive income attributable to II-VI Incorporated | $42,255 | $56,470 | $57,428 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Pension adjustment, net of taxes | $387 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
In Thousands, except Share data | |||||
Beginning Balance at Jun. 30, 2011 | $521,273 | $159,186 | $13,116 | $377,264 | ($28,293) |
Beginning Balance, shares at Jun. 30, 2011 | ' | 69,077,000 | ' | ' | -6,394,000 |
Shares issued under stock incentive plans | 2,738 | 2,738 | ' | ' | ' |
Shares issued under stock incentive plans (in shares) | ' | 550,000 | ' | ' | ' |
Net earnings attributable to II-VI Incorporated | 60,306 | ' | ' | 60,306 | ' |
Purchases of treasury stock | -4,988 | ' | ' | ' | -4,988 |
Purchases of treasury stock, shares | -301,716 | ' | ' | ' | -302,000 |
Treasury stock in deferred compensation plan | ' | 1,966 | ' | ' | -1,966 |
Treasury stock in deferred compensation plan, (in shares) | ' | ' | ' | ' | -98,000 |
Foreign currency translation adjustment | -2,878 | ' | -2,878 | ' | ' |
Share-based compensation expense | 11,584 | 11,584 | ' | ' | ' |
Excess tax benefits from share-based compensation expense | 821 | 821 | ' | ' | ' |
Adjustment to redeemable noncontrolling interest | -2,630 | ' | ' | -2,630 | ' |
Ending Balance at Jun. 30, 2012 | 586,226 | 176,295 | 10,238 | 434,940 | -35,247 |
Ending Balance, shares at Jun. 30, 2012 | ' | 69,627,000 | ' | ' | -6,794,000 |
Shares issued under stock incentive plans | 4,104 | 4,104 | ' | ' | ' |
Shares issued under stock incentive plans (in shares) | ' | 596,000 | ' | ' | ' |
Net earnings attributable to II-VI Incorporated | 50,813 | ' | ' | 50,813 | ' |
Purchases of treasury stock | -19,978 | ' | ' | ' | -19,978 |
Purchases of treasury stock, shares | -1,141,022 | ' | ' | ' | -1,141,000 |
Treasury stock in deferred compensation plan | ' | 1,291 | ' | ' | -1,291 |
Treasury stock in deferred compensation plan, (in shares) | ' | ' | ' | ' | -70,000 |
Foreign currency translation adjustment | 5,362 | ' | 5,362 | ' | ' |
Share-based compensation expense | 11,959 | 11,959 | ' | ' | ' |
Excess tax benefits from share-based compensation expense | 635 | 635 | ' | ' | ' |
Adjustment to redeemable noncontrolling interest | -2,875 | ' | ' | -2,875 | ' |
Minimum tax withholding requirements | -138 | ' | ' | ' | -138 |
Minimum tax withholding requirements, (in shares) | ' | ' | ' | ' | -7,000 |
Ending Balance at Jun. 30, 2013 | 636,108 | 194,284 | 15,600 | 482,878 | -56,654 |
Ending Balance, shares at Jun. 30, 2013 | ' | 70,223,000 | ' | ' | -8,012,000 |
Shares issued under stock incentive plans | 3,655 | 4,482 | ' | ' | -827 |
Shares issued under stock incentive plans (in shares) | ' | 712,000 | ' | ' | -44,000 |
Net earnings attributable to II-VI Incorporated | 38,449 | ' | ' | 38,449 | ' |
Purchases of treasury stock | -19,973 | ' | ' | ' | -19,973 |
Purchases of treasury stock, shares | -1,333,355 | ' | ' | ' | -1,333,000 |
Treasury stock in deferred compensation plan | ' | 1,809 | ' | ' | -1,809 |
Treasury stock in deferred compensation plan, (in shares) | ' | ' | ' | ' | -93,000 |
Foreign currency translation adjustment | 2,363 | ' | 2,363 | ' | ' |
Share-based compensation expense | 12,347 | 12,347 | ' | ' | ' |
Pension other comprehensive income | 1,443 | ' | 1,443 | ' | ' |
Excess tax benefits from share-based compensation expense | 651 | 651 | ' | ' | ' |
Adjustment to redeemable noncontrolling interest | ' | ' | ' | ' | ' |
Ending Balance at Jun. 30, 2014 | $675,043 | $213,573 | $19,406 | $521,327 | ($79,263) |
Ending Balance, shares at Jun. 30, 2014 | ' | 70,935,000 | ' | ' | -9,482,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash Flows from Operating Activities | ' | ' | ' |
Net earnings | $38,449 | $51,931 | $61,275 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
(Earnings) loss from discontinued operation, net of tax | -133 | 6,789 | 9,443 |
Depreciation | 41,805 | 34,135 | 30,072 |
Amortization | 11,293 | 6,657 | 4,451 |
Share-based compensation expense | 12,347 | 11,959 | 11,584 |
Loss (gain) on foreign currency transactions | 700 | 1,244 | -1,514 |
Gain on sale of equity investment | ' | ' | -1,021 |
Earnings from equity investments | -698 | -1,048 | -1,059 |
Deferred income taxes | -4,435 | 1,962 | 577 |
Impairment on property, plant and equipment | ' | 900 | ' |
Excess tax benefits from share-based compensation expense | -651 | -635 | -821 |
Increase (decrease) in cash from changes in: | ' | ' | ' |
Accounts receivable | -28,486 | 5,441 | -9,538 |
Inventories | 12,794 | 1,969 | -15,168 |
Accounts payable | 19,813 | -9,376 | 2,921 |
Income taxes payable | -6,282 | 4,351 | 2,824 |
Other operating net assets | -2,251 | -5,807 | -3,448 |
Continuing Operations | 94,265 | 110,472 | 90,578 |
Discontinued Operation | 1,197 | -2,865 | -2,509 |
Net cash provided by operating activities | 95,462 | 107,607 | 88,069 |
Cash Flows from Investing Activities | ' | ' | ' |
Additions to property, plant & equipment | -29,220 | -25,205 | -42,797 |
Purchases of businesses, net of cash acquired | -177,676 | -126,193 | -46,141 |
Proceeds received from contractual settlement fromThailand flooding | ' | 4,797 | ' |
Proceeds received from sale of equity method investment | ' | 2,138 | 3,478 |
Other investing activities | 79 | ' | 615 |
Continuing Operations | -206,817 | -144,463 | -84,845 |
Discontinued Operation | ' | -68 | -43 |
Net cash used in investing activities | -206,817 | -144,531 | -84,888 |
Cash Flows from Financing Activities | ' | ' | ' |
Proceeds on long-term borrowings | 183,000 | 113,000 | 7,000 |
Payments on long-term borrowings | -55,000 | -11,000 | -14,295 |
Purchases of treasury stock | -19,973 | -19,978 | -4,988 |
Proceeds from exercises of stock options | 4,358 | 4,104 | 2,658 |
Payments on cash earnout arrangement | -3,000 | ' | -6,000 |
Payment of redeemed noncontrolling interest | -8,789 | ' | ' |
Other financing activities | -1,514 | -347 | 821 |
Net cash provided by (used in) financing activities | 99,082 | 85,779 | -14,804 |
Effect of exchange rate changes on cash and cash equivalents | 1,500 | 1,634 | -2,893 |
Net (decrease) increase in cash and cash equivalents | -10,773 | 50,489 | -14,516 |
Cash and Cash Equivalents at Beginning of Period | 185,433 | 134,944 | 149,460 |
Cash and Cash Equivalents at End of Period | 174,660 | 185,433 | 134,944 |
Non cash transactions: | ' | ' | ' |
Capital lease obligation incurred on facility lease | 11,636 | ' | ' |
Purchase of businesses - holdback amount recorded in other accrued liabilities | 10,000 | ' | ' |
Purchase of business utilizing earnout consideration recorded in other current liabilities | ' | 3,300 | ' |
Note receivable received from the sale of an equity investment | ' | ' | $2,022 |
Nature_of_Business_and_Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended | |
Jun. 30, 2014 | ||
Nature of Business and Summary of Significant Accounting Policies | ' | |
Note 1. | Nature of Business and Summary of Significant Accounting Policies | |
Nature of Business. II-VI Incorporated and its subsidiaries (the “Company,” “we,” “us,” or “our”), a worldwide leader in engineered materials and opto-electronic components, is a vertically-integrated manufacturing company that creates and markets products for a diversified customer base including industrial manufacturing, optical communications, military, high-power electronics, semiconductor and thermo-electronics applications. The Company markets its products through its direct sales force and through distributors and agents. | ||
The Company uses certain uncommon materials and compounds to manufacture its products. Some of these materials are available from only one proven outside source. The continued high quality of these materials is critical to the stability of the Company’s manufacturing yields. The Company has not experienced significant production delays due to a shortage of materials. However, the Company does occasionally experience problems associated with vendor-supplied materials not meeting specifications for quality or purity. A significant failure of the Company’s suppliers to deliver sufficient quantities of necessary high-quality materials on a timely basis could have a material adverse effect on the Company’s results of operations. | ||
Principles of Consolidation. The consolidated financial statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. | ||
Foreign Currency Translation. For II-VI Singapore Pte., Ltd. and its subsidiaries, II-VI Suisse S.a.r.l., Pacific Rare Specialty Metals & Chemicals, Inc. (“PRM”), Photop AOFR Pty. Ltd. (“AOFR”), II-VI Laser Enterprise and II-VI Network Solutions Division the functional currency is the United States (U.S.) dollar. The determination of the functional currency is made based on the appropriate economic and management indicators. | ||
For all other foreign subsidiaries, the functional currency is the local currency. Assets and liabilities of those operations are translated into U.S. dollars using period-end exchange rates while income and expenses are translated using the average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income within shareholders’ equity in the accompanying Consolidated Balance Sheets. | ||
Cash and Cash Equivalents. The Company considers highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and to date have not experienced credit losses in these instruments. Cash of foreign subsidiaries is on deposit at banks in China, Vietnam, Singapore, Japan, Switzerland, the Netherlands, Germany, the Philippines, Belgium, Italy, Hong Kong, Australia and the United Kingdom (“U.K.”). | ||
Accounts Receivable. The Company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues, net of this allowance, is reasonably assured. | ||
The Company factored a portion of the accounts receivable of its Japan subsidiary during each of the years ended June 30, 2014 and 2013. Factoring is done with large banks in Japan. During the years ended June 30, 2014 and 2013, $12.7 million and $8.5 million, respectively, of accounts receivable had been factored. As of June 30, 2014 and 2013, the amount included in other accrued liabilities representing the Company’s obligation to the bank for these receivables factored with recourse was immaterial. | ||
Inventories. Inventories are valued at the lower of cost or market (“LCM”), with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. Market cannot exceed the net realizable value (i.e., estimated selling price in the ordinary course of business less reasonably predicted costs of completion and disposal) and market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin. In evaluating LCM, management also considers, if applicable, other factors as well, including known trends, market conditions, currency exchange rates and other such issues. The Company records an inventory reserve as a charge against earnings for all products on hand more than twelve to eighteen months depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional reserve is recorded for product on hand that is in excess of product sold to customers over the same periods noted above. Inventories are presented net of reserves. The reserves totaled $12.0 million and $7.1 million at June 30, 2014 and 2013, respectively. | ||
Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair market value upon acquisition. Major improvements are capitalized, while maintenance and repairs are generally expensed as incurred. The Company reviews its property, plant and equipment and other long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Depreciation for financial reporting purposes is computed primarily by the straight-line method over the estimated useful lives for building, building improvements and land improvements of 10 to 20 years and 3 to 12 years for machinery and equipment. | ||
Business Combinations. The Company accounts for business acquisitions by establishing the acquisition-date fair value as the measurement for all assets acquired and liabilities assumed. Certain provisions of accounting principles generally accepted in the United States (“U.S. GAAP”) prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. | ||
Goodwill. The excess purchase price over the fair market value allocated to identifiable tangible and intangible net assets of businesses acquired is reported as goodwill in the accompanying Consolidated Balance Sheets. The Company tests goodwill for impairment at least annually as of April 1, or when events or changes in circumstances indicate that goodwill might be impaired. The evaluation of impairment involves comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company uses a discounted cash flow (“DCF”) model and a market analysis to determine the current fair value of the 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. | ||
The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. | ||
Intangibles. Intangible assets are initially recorded at their cost or fair market value upon acquisition. Finite-lived intangible assets are amortized for financial reporting purposes using the straight-line method over the estimated useful lives of the assets ranging from 7 to 18 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1, or when events or changes in circumstances indicate that indefinite-lived intangible assets might be impaired. | ||
Equity Method Investments. 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 June 30, 2014 and June 30, 2013 was $11.6 million and $11.2 million, respectively. During the years ended June 30, 2014, 2013 and 2012, the Company’s pro-rata share of earnings from this investment was $0.7 million, $1.0 million and $1.3 million, respectively, and was recorded in other expense (income), net in the Consolidated Statements of Earnings. During the years ended June 30, 2014 and 2013, the Company recorded dividends from this equity investment of $0.3 million and $0.5 million for the years ended June 30, 2014 and 2013, respectively. | ||
Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Such accruals are adjusted as further information develops or circumstances change. The Company had no loss contingency liabilities at June 30, 2014 related to commitments and contingencies. | ||
Accrued Bonus and Profit Sharing Contribution. The Company records bonus and profit sharing estimates as a charge against earnings. These estimates are adjusted to actual based on final results of operations achieved during the fiscal year. Certain partial bonus amounts are paid on an interim basis, and the remainder is paid after the fiscal year end after the final determination of the applicable percentage or amounts. Other bonuses are paid annually. | ||
Warranty Reserve. The Company records a warranty reserve as a charge against earnings based on a percentage of revenues utilizing actual returns over a period that approximates historical warranty experience. | ||
Income Taxes. Deferred income tax assets and liabilities are determined based on the differences between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount more likely than not to be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in facts and circumstances. For example, adjustments could result from significant amendments to existing tax law and the issuance of regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes that its estimates for uncertain tax positions are appropriate and sufficient to pay assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties related to unrecognized tax benefits in income tax expense. | ||
Revenue Recognition. The Company recognizes revenues for product shipments when persuasive evidence of a sales arrangement exists, the product has been shipped or delivered, the sale price is fixed or determinable and collectability is reasonably assured. Title and risk of loss passes from the Company to its customer at the time of shipment in most cases with the exception of certain customers. For these customers, title does not pass and revenue is not recognized until the customer has received the product at its physical location. | ||
We establish an allowance for doubtful accounts and warranty reserves based on historical experience and believe the collection of revenues, net of these reserves, is reasonably assured. Our allowance for doubtful accounts and warranty reserve balances at June 30, 2014 were approximately $1.9 million and $2.9 million, respectively. Our reserve estimates have historically been proven to be materially correct based upon actual charges incurred. | ||
The Company’s revenue recognition policy is consistently applied across the Company’s segments, product lines and geographical locations. Further, we do not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges. Our distributors and agents are not granted price protection. Our distributors and agents, which comprise less than 10% of consolidated revenues, have no additional product return rights beyond the right to return defective products covered by our warranty policy. Revenues generated from transactions other than product shipments are contract related and have historically accounted for less than 5% of consolidated revenues. We believe our revenue recognition practices have adequately considered the requirements under U.S. GAAP. | ||
Shipping and Handling Costs. Shipping and handling costs billed to customers are included in revenues. Shipping and handling costs incurred by the Company are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. Total shipping and handling revenue and costs included in revenues and in selling, general and administrative expenses were immaterial for the fiscal years ended June 30, 2014, 2013 and 2012. | ||
Research and Development. Internal research and development costs and costs not related to customer and government funded research and development contracts are expensed as incurred. | ||
Share-Based Compensation. The Company follows U.S. GAAP in accounting for share-based compensation arrangements, which requires the recognition of the fair value of stock compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. | ||
Workers’ Compensation. The Company is self-insured for certain losses related to workers’ compensation for the majority of its U.S. employees. When estimating the self-insurance liability, the Company considers a number of factors, including historical claims experience, demographic and severity factors and valuations provided by independent third-party consultants. Periodically, management reviews its assumptions and valuations to determine the adequacy of the self-insurance liability. | ||
Accumulated Other Comprehensive Income. Accumulated other comprehensive income is a measure of all changes in shareholders’ equity that result from transactions and other economic events in the period other than transactions with owners. Accumulated other comprehensive income is a component of shareholders’ equity and consists of accumulated foreign currency translation adjustments of $18.0 million and $15.6 million, respectively, as of June 30, 2014 and 2013 and a pension adjustment of $1.4 million as of June 30, 2014. | ||
Fair Value Measurements. The Company applies fair value accounting for all financial assets and liabilities that are required to be recognized or disclosed at fair value in the financial statements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact, and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | ||
Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Leases. The Company classifies leases as operating in accordance with the provisions of lease accounting. Rent expense under noncancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. The current portion of unamortized deferred lease costs is included in other accrued liabilities and the long-term portion is included in other liabilities in the Consolidated Balance Sheets. | ||
Recently Issued Financial Accounting Standards | ||
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) which supersedes virtually all existing revenue recognition guidance under U.S. GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016 and prohibits early adoption. The update allows for the use of either the retrospective or modified retrospective approach of adoption. Management is currently evaluating the available transition methods and the potential impact of adoption on the Company's Consolidated Financial Statements. | ||
In April 2014, the FASB issued an ASU that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The new standard will be effective for annual periods beginning on or after December 15, 2014 with early adoption permitted and will be effective for the Company beginning in the first quarter of fiscal year 2016. The adoption of this standard is not expected to have a significant impact on the Company’s Consolidated Financial Statements. | ||
In July 2013, the FASB issued an ASU that changes how certain unrecognized tax benefits are to be presented on the consolidated balance sheet. This ASU clarified existing guidance to require that an unrecognized tax benefit or a portion thereof be presented in the consolidated balance sheet as a reduction to a deferred tax asset for a net operating loss (“NOL”) carryforward, similar tax loss, or a tax credit carryforward except when an NOL carryforward, similar tax loss, or tax credit carryforward is not available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. In such a case, the unrecognized tax benefit would be presented in the consolidated balance sheet as a liability. 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 March 2013, the FASB issued an ASU 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 ASU 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 | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Acquisitions | ' | |||||||
Note 2. | 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 Company operates the business under the name II-VI Network Solutions Division (“Network Solutions”) and includes it with II-VI Laser Enterprise, GmbH (“Laser Enterprise”) 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. At closing, the Company paid $79.6 million in cash, plus a $4.0 million holdback amount for 14 months to address any post-closing adjustments or claims, and $5.0 million that was previously paid to Oclaro on September 12, 2013. The purchase price of the Network Solutions acquisition is summarized as follows ($000): | ||||||||
Net cash paid at acquisition | $ | 79,600 | ||||||
Cash previously paid | 5,000 | |||||||
Holdback amount recorded in Other liabilities | 4,000 | |||||||
Purchase price | $ | 88,600 | ||||||
The following table presents the allocation of the purchase price of the assets acquired at the date of acquisition ($000): | ||||||||
Assets | ||||||||
Inventories | $ | 11,314 | ||||||
Property, plant & equipment | 9,700 | |||||||
Intangible assets | 32,000 | |||||||
Goodwill | 35,586 | |||||||
Total assets acquired | $ | 88,600 | ||||||
The goodwill of $35.6 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 Consolidated Statement of Earnings were $53.4 million and $2.6 million, respectively, for the year ended June 30, 2014. | ||||||||
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 Company operates the acquired business under the name II-VI 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. At closing, the Company paid $90.6 million of cash, 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 paid an additional $2.5 million for a working capital adjustment in accordance with the purchase agreement. The purchase price of the Laser Enterprise acquisition is summarized as follows ($000): | ||||||||
Net cash paid at acquisition | $ | 90,601 | ||||||
Cash paid for working capital adjustment | 2,475 | |||||||
Holdback amount recorded in Other liabilities | 6,000 | |||||||
Purchase price | $ | 99,076 | ||||||
The following table presents the allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): | ||||||||
Assets | ||||||||
Inventories | $ | 26,071 | ||||||
Prepaid and other assets | 1,035 | |||||||
Deferred income taxes | 1,771 | |||||||
Property, plant & equipment | 30,184 | |||||||
Intangible assets | 28,900 | |||||||
Goodwill | 37,507 | |||||||
Total assets acquired | $ | 125,468 | ||||||
Liabilities | ||||||||
Accounts payable | $ | 2,214 | ||||||
Deferred income taxes | 8,647 | |||||||
Accrued income taxes | 2,714 | |||||||
Other accrued liabilities | 12,817 | |||||||
Total liabilities assumed | $ | 26,392 | ||||||
Net assets acquired | $ | 99,076 | ||||||
The goodwill of Laser Enterprise of $37.5 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 Consolidated Statement of Earnings for the year ended June 30, 2014 was $61.8 million and $17.4 million, respectively. | ||||||||
In conjunction with the acquisitions of Network Solutions and Laser Enterprise, the Company expensed transactions costs of approximately $3.7 million, net of tax of $0.2 million, for the year ended June 30, 2014. These costs were recorded within selling, general and administrative expenses in the Consolidated Statements of Earnings. | ||||||||
Pro Forma Information | ||||||||
The following unaudited pro forma consolidated results of operations for fiscal year 2014 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 the acquisitions. As a result, certain transaction related expenses of $3.7 million (net of tax) for the year ended June 30, 2014 were only included in the earliest period presented below ($000 except per share data). | ||||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
Net revenues | $ | 734,912 | $ | 732,474 | ||||
Net earnings attributable to II-VI Incorporated | $ | 47,054 | $ | 44,693 | ||||
Basic earnings per share | $ | 0.76 | $ | 0.72 | ||||
Diluted earnings per share | $ | 0.75 | $ | 0.7 | ||||
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. |
Discontinued_Operation
Discontinued Operation | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Discontinued Operation | ' | ||||||||||||
Note 3. | Discontinued Operation | ||||||||||||
During December 2013, the Company completed the discontinuance of its tellurium product line by exiting all business activities associated with this product. 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): | |||||||||||||
June 30, | 2014 | 2013 | 2012 | ||||||||||
$0 | |||||||||||||
Revenues | $ | 1,849 | $ | 7,321 | $ | 18,227 | |||||||
Earnings (loss) from discontinued operation before income taxes | 133 | (6,789 | ) | (9,583 | ) | ||||||||
Income tax benefit | - | - | 140 | ||||||||||
Earnings (loss) from discontinued operation net income taxes | $ | 133 | $ | (6,789 | ) | $ | (9,443 | ) | |||||
Inventories
Inventories | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories | ' | ||||||||
Note 4. | Inventories | ||||||||
The components of inventories, net of reserves, were as follows: | |||||||||
June 30, | 2014 | 2013 | |||||||
$0 | |||||||||
Raw materials | $ | 71,949 | $ | 59,290 | |||||
Work in process | 44,739 | 43,895 | |||||||
Finished goods | 49,185 | 38,674 | |||||||
$ | 165,873 | $ | 141,859 | ||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment | ' | ||||||||
Note 5. | Property, Plant and Equipment | ||||||||
Property, plant and equipment consists of the following: | |||||||||
June 30, | 2014 | 2013 | |||||||
$0 | |||||||||
Land and improvements | $ | 2,381 | $ | 2,236 | |||||
Buildings and improvements | 96,551 | 87,189 | |||||||
Machinery and equipment | 335,408 | 276,802 | |||||||
Construction in progress | 16,990 | 10,831 | |||||||
451,330 | 377,058 | ||||||||
Less accumulated depreciation | (242,391 | ) | (206,386 | ) | |||||
$ | 208,939 | $ | 170,672 | ||||||
Depreciation expense was $41.8 million, $34.1 million and $30.1 million for the fiscal years ended June 30, 2014, 2013 and 2012, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||||
Note 6. | Goodwill and Other Intangible Assets | |||||||||||||||||||||||
Goodwill represents the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon fair market value at the date of acquisition. | ||||||||||||||||||||||||
In connection with the two acquisitions completed in fiscal year 2014 and the acquisitions completed in fiscal year 2013, the Company recorded the excess purchase prices over the net assets of the businesses acquired as goodwill in the accompanying Consolidated Balance Sheets, based on the purchase price allocation. Changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||
Year Ended June 30, 2014 | ||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Total | |||||||||||||||||||
Balance-July 1, 2013 | $ | 9,677 | $ | 60,269 | $ | 30,712 | $ | 22,694 | $ | - | $ | 123,352 | ||||||||||||
Goodwill acquired | - | - | - | - | 73,093 | 73,093 | ||||||||||||||||||
Goodwill adjustment | - | - | - | (516 | ) | - | (516 | ) | ||||||||||||||||
Foreign currency translation | 77 | 139 | - | - | - | 216 | ||||||||||||||||||
Balance-June 30, 2014 | $ | 9,754 | $ | 60,408 | $ | 30,712 | $ | 22,178 | $ | 73,093 | $ | 196,145 | ||||||||||||
During the year ended June 30, 2014, 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. | ||||||||||||||||||||||||
Year Ended June 30, 2013 | ||||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||
Optics | Optics | Materials | Group | Total | ||||||||||||||||||||
Balance-July 1, 2012 | $ | 9,612 | $ | 48,496 | $ | 12,326 | $ | 10,314 | $ | 80,748 | ||||||||||||||
Goodwill acquired | - | 10,980 | 18,386 | 12,381 | 41,746 | |||||||||||||||||||
Foreign currency translation | 65 | 793 | - | - | 858 | |||||||||||||||||||
Balance-June 30, 2013 | $ | 9,677 | $ | 60,269 | $ | 30,712 | $ | 22,694 | $ | 123,352 | ||||||||||||||
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 used a discounted cash flow (DCF) model and a market analysis to determine the current fair value of all its reporting units except for the Active Optical Products reporting unit. 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. The Company has the option to perform a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. Due to the timing of the Company’s finalization of the current year acquisitions of Laser Enterprise and Network Solutions, a qualitative test was performed on the Active Optical Products segment during fiscal year ended 2014. As of April 1 of fiscal years 2014 and 2013, the Company completed its annual impairment tests of its reporting units. Based on the results of these analyses, the Company’s goodwill of $196.1 million as of June 30, 2014 and $123.4 million as of June 30, 2013 was not impaired. | ||||||||||||||||||||||||
As the estimated fair value of the Near Infrared Optics reporting unit was approximately 9% greater than its carrying value, the Company has concluded that this reporting unit is at risk of not passing step one of future goodwill impairment tests. In the event of unfavorable changes to the existing assumptions used in the impairment test such as the weighted average cost of capital (discount rate), growth rates and market multiples as well as changes in our internal structure, the carrying value of the Company’s goodwill could be impaired. Although the Company believes that the current assumptions and estimates are reasonable, supportable and appropriate, the Near Infrared Optics reporting unit competes in a challenging environment with significant pricing pressure and rapidly changing technology and there can be no assurance that the estimates and assumptions made for purposes of the goodwill impairment test will prove to be accurate predictions of future performance. | ||||||||||||||||||||||||
As a result of the July 1, 2014 segment realignment as described in Item 1 of this Annual Report on Form 10-K, the Company will reassign the Active Optical Products segment's existing goodwill balance to the new reporting units utilizing a relative fair value allocation approach in accordance with authoritative accounting guidance. As part of this reassignment, the Company may be required to review the recoverability of the carrying value of goodwill at the new reporting units. | ||||||||||||||||||||||||
The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Year Ended June 30, 2014 | Year Ended June 30, 2013 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | |||||||||||||||||||
Technology and patents | $ | 50,505 | $ | (14,474 | ) | $ | 36,031 | $ | 39,659 | $ | (10,455 | ) | $ | 29,204 | ||||||||||
Trademarks | 17,870 | (1,037 | ) | 16,833 | 17,855 | (963 | ) | 16,892 | ||||||||||||||||
Customer lists | 102,839 | (19,448 | ) | 83,391 | 52,614 | (12,189 | ) | 40,425 | ||||||||||||||||
Other | 1,586 | (1,437 | ) | 149 | 1,580 | (1,400 | ) | 180 | ||||||||||||||||
Total | $ | 172,800 | $ | (36,396 | ) | $ | 136,404 | $ | 111,708 | $ | (25,007 | ) | $ | 86,701 | ||||||||||
Amortization expense recorded on the intangible assets for the fiscal years ended June 30, 2014, 2013 and 2012 was $11.3 million, $6.7 million, and $4.5 million, respectively. The technology and patents are being amortized over a range of 60 to 240 months with a weighted-average remaining life of approximately 118 months. The customer lists are being amortized over 120 to 192 months with a weighted-average remaining life of approximately 150 months. As a result of the completion of the valuations of our recent acquisitions of Laser Enterprise and Network Solutions, the Company recorded $10.8 million of technology and patents and $50.1 million of customer lists. | ||||||||||||||||||||||||
In connection with past acquisitions, the Company acquired tradenames with indefinite lives. The carrying amount of these tradenames of $16.4 million is not amortized but tested annually for impairment. The Company completed its impairment test of these tradenames with indefinite lives in the fourth quarter of fiscal years 2014 and 2013. Based on the results of these tests, the tradenames were not impaired at June 30, 2014 or 2013. | ||||||||||||||||||||||||
Included in the gross carrying amount and accumulated amortization of the Company’s patents, customer list and other component of intangible assets and goodwill is the effect of the foreign currency translation of the portion relating to the Company’s German subsidiaries, Photop and AOFR. The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows: | ||||||||||||||||||||||||
Year Ending June 30, | ||||||||||||||||||||||||
2015 | $ | 11,716 | ||||||||||||||||||||||
2016 | 11,619 | |||||||||||||||||||||||
2017 | 11,609 | |||||||||||||||||||||||
2018 | 11,140 | |||||||||||||||||||||||
2019 | 10,715 | |||||||||||||||||||||||
Debt
Debt | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt | ' | ||||||||
Note 7. | Debt | ||||||||
The components of debt were as follows ($000): | |||||||||
June 30, | 2014 | 2013 | |||||||
Line of credit, interest at LIBOR, as defined, plus 1.75% and | $ | 154,000 | $ | 111,000 | |||||
1.25%, respectively | |||||||||
Term loan, interest at LIBOR, as defined, plus 1.25% | $ | 85,000 | - | ||||||
Yen denominated line of credit, interest at LIBOR, as defined, | 2,960 | 3,036 | |||||||
plus 0.625% | |||||||||
Total debt | 241,960 | 114,036 | |||||||
Current portion of long-term debt | (20,000 | ) | - | ||||||
Long-term debt, less current portion | $ | 221,960 | $ | 114,036 | |||||
In September 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 June 30, 2014, 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%. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of June 30, 2014, the Company was in compliance with all covenants under the Yen facility. | |||||||||
The Company had aggregate availability of $71.0 million and $29.8 million under its lines of credit as of June 30, 2014 and 2013, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. As of June 30, 2014 and 2013, total outstanding letters of credit supported by the credit facilities were $1.9 million and $1.3 million, respectively. | |||||||||
The weighted-average interest rate of total borrowings for the years ended June 30, 2014 and 2013 was 1.8% and 1.4%, respectively. The weighted-average of total borrowings for the fiscal years ended June 30, 2014 and 2013 was $222.6 million and $82.5 million, respectively. | |||||||||
The Company has a line of credit facility with a Singapore bank which permits maximum borrowings in the local currency of approximately $0.3 million and $0.4 million for the fiscal years ended June 30, 2014 and 2013. Borrowings are payable upon demand with interest charged at the rate of 1.00% above the bank’s prevailing prime lending rate. The interest rate was 5.25% at June 30, 2014 and June 30, 2013. At June 30, 2014 and 2013, there were no outstanding borrowings under this facility. | |||||||||
There are no interim maturities or minimum payment requirements related to the credit facilities before their respective expiration dates. Interest and commitment fees paid during the fiscal year ended June 30, 2014 and 2013 was $4.2 million and $1.1 million, respectively, and was immaterial for fiscal year 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Note 8. | Income Taxes | ||||||||||||||||||||||||
The components of income (loss) from continuing operations before income taxes were as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
U.S. income (loss) | $ | (2,863 | ) | $ | 19,253 | $ | 16,025 | ||||||||||||||||||
Non-U.S. income | 48,504 | 58,233 | 72,453 | ||||||||||||||||||||||
Total Earnings Before Tax | $ | 45,641 | $ | 77,486 | $ | 88,478 | |||||||||||||||||||
The components of income tax expense (benefit) from continuing operations were as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | (1,067 | ) | $ | 2,759 | $ | 283 | |||||||||||||||||||
State | 152 | 68 | 227 | ||||||||||||||||||||||
Foreign | 12,675 | 13,977 | 16,673 | ||||||||||||||||||||||
Total Current | $ | 11,760 | $ | 16,804 | $ | 17,183 | |||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (16 | ) | $ | 1,721 | $ | 3,409 | |||||||||||||||||||
State | 148 | 113 | (356 | ) | |||||||||||||||||||||
Foreign | (4,567 | ) | 128 | (2,476 | ) | ||||||||||||||||||||
Total Deferred | $ | (4,435 | ) | $ | 1,962 | $ | 577 | ||||||||||||||||||
Total Income Tax Expense | $ | 7,325 | $ | 18,766 | $ | 17,760 | |||||||||||||||||||
Principal items comprising deferred income taxes were as follows: | |||||||||||||||||||||||||
June 30, | 2014 | 2013 | |||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Deferred income tax assets | |||||||||||||||||||||||||
Inventory capitalization | $ | 5,402 | $ | 6,333 | |||||||||||||||||||||
Non-deductible accruals | 1,926 | 1,930 | |||||||||||||||||||||||
Accrued employee benefits | 9,226 | 6,790 | |||||||||||||||||||||||
Net-operating loss and credit carryforwards | 21,976 | 22,849 | |||||||||||||||||||||||
Share-based compensation expense | 16,005 | 15,021 | |||||||||||||||||||||||
Other | 577 | 205 | |||||||||||||||||||||||
Valuation allowances | (2,212 | ) | (2,885 | ) | |||||||||||||||||||||
Total deferred income tax assets | $ | 52,900 | $ | 50,243 | |||||||||||||||||||||
Deferred income tax liabilities | |||||||||||||||||||||||||
Tax over book accumulated depreciation | (17,625 | ) | $ | (16,988 | ) | ||||||||||||||||||||
Intangible assets | (25,505 | ) | (21,561 | ) | |||||||||||||||||||||
Other | (2,786 | ) | (2,409 | ) | |||||||||||||||||||||
Total deferred income tax liabilities | $ | (45,916 | ) | $ | (40,958 | ) | |||||||||||||||||||
Net deferred income taxes | $ | 6,984 | $ | 9,285 | |||||||||||||||||||||
The reconciliation of income tax expense at the statutory federal rate to the reported income tax expense is as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | % | 2013 | % | 2012 | % | |||||||||||||||||||
$0 | |||||||||||||||||||||||||
Taxes at statutory rate | $ | 15,974 | 35 | $ | 27,120 | 35 | $ | 30,967 | 35 | ||||||||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||||||||||||
State income taxes-net of federal benefit | 254 | 1 | 168 | - | (187 | ) | - | ||||||||||||||||||
Taxes on non U.S. earnings | (6,672 | ) | (15 | ) | (6,991 | ) | (9 | ) | (9,841 | ) | (11 | ) | |||||||||||||
Settlement of unrecognized tax benefits | - | - | - | - | (842 | ) | (1 | ) | |||||||||||||||||
Research and manufacturing incentive deductions | (2,190 | ) | (5 | ) | (1,458 | ) | (2 | ) | (2,079 | ) | (3 | ) | |||||||||||||
Other | (41 | ) | - | (73 | ) | - | (258 | ) | - | ||||||||||||||||
$ | 7,325 | 16 | $ | 18,766 | 24 | $ | 17,760 | 20 | |||||||||||||||||
During the fiscal years ended June 30, 2014, 2013, and 2012, net cash paid by the Company for income taxes was $17.2 million, $11.9 million, and $13.2 million, respectively. | |||||||||||||||||||||||||
The cumulative amount of the Company’s foreign undistributed net earnings for which no deferred taxes have been provided was approximately $366 million at June 30, 2014. If the earnings of such foreign subsidiaries were not indefinitely reinvested, an additional deferred tax liability of approximately $74 million would have been required as of June 30, 2014. It is the Company’s intention to permanently reinvest undistributed earnings of its foreign subsidiaries; therefore, no provision has been made for future income taxes on the undistributed earnings of foreign subsidiaries, as they are considered indefinitely reinvested. | |||||||||||||||||||||||||
The sources of differences resulting in deferred income tax expense (benefit) from continuing operations and the related tax effect of each were as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Depreciation and amortization | $ | (3,581 | ) | $ | (2,825 | ) | $ | 38 | |||||||||||||||||
Inventory capitalization | 646 | 84 | (1,947 | ) | |||||||||||||||||||||
Net operating loss and credit carryforwards net of valuation | 533 | 4,786 | 1,859 | ||||||||||||||||||||||
allowances | |||||||||||||||||||||||||
Share-based compensation expense | (984 | ) | (3,487 | ) | (2,442 | ) | |||||||||||||||||||
Other | (1,049 | ) | 3,404 | 3,069 | |||||||||||||||||||||
$ | (4,435 | ) | $ | 1,962 | $ | 577 | |||||||||||||||||||
The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2014: | |||||||||||||||||||||||||
Type | Amount | Expiration Date | |||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Tax credit carryforwards: | |||||||||||||||||||||||||
Federal research and development credits | $ | 4,117 | June 2019-June 2034 | ||||||||||||||||||||||
State tax credits | 2,827 | June 2014-June 2029 | |||||||||||||||||||||||
Operating loss carryforwards: | |||||||||||||||||||||||||
Loss carryforwards - federal | $ | 36,124 | June 2022-June 2029 | ||||||||||||||||||||||
Loss carryforwards - state | 25,116 | June 2014-June 2034 | |||||||||||||||||||||||
Loss carryforwards - foreign | 9,427 | June 2016-June 2022 | |||||||||||||||||||||||
The Company has recorded a valuation allowance against the majority of the foreign loss carryforwards and select state tax credit carryforwards. The Company’s federal loss carryforwards, federal research and development credit carryforwards, and certain state tax credits resulted from the Company’s acquisitions of Photop Aegis and M Cubed and are subject to various annual limitations under Section 382 of the Internal Revenue Code. | |||||||||||||||||||||||||
Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Balance at Beginning of Year | $ | 3,181 | $ | 2,850 | $ | 4,744 | |||||||||||||||||||
Increases in current year tax positions | 298 | 338 | 738 | ||||||||||||||||||||||
Increases in prior year tax positions | 2 | - | - | ||||||||||||||||||||||
Decreases in prior year tax positions | - | (7 | ) | (41 | ) | ||||||||||||||||||||
Settlements | - | - | (1,788 | ) | |||||||||||||||||||||
Expiration of statute of limitations | (706 | ) | - | (803 | ) | ||||||||||||||||||||
Balance at End of Year | $ | 2,775 | $ | 3,181 | $ | 2,850 | |||||||||||||||||||
The Company classifies all estimated and actual interest and penalties as income tax expense. There was no interest and penalties within income tax expense for fiscal year 2014. During the fiscal years ended June 30, 2013 and 2012, the Company recognized $0.1 million of expense and $0.2 million of benefit, respectively, of interest and penalties within income tax expense. The Company had $0.2 million, $0.2 million, and $0.1 million of interest and penalties accrued at June 30, 2014, 2013, and 2012, respectively. The Company has classified the uncertain tax positions as non-current income tax liabilities as the amounts are not expected to be paid within one year. Including tax positions for which the Company determined that the tax position would not meet the more likely than not recognition threshold upon examination by the tax authorities based upon the technical merits of the position, the total estimated unrecognized tax benefit that, if recognized, would affect our effective tax rate was approximately $2.8 million and $3.2 million at June 30, 2014 and 2013, respectively. The Company expects a decrease of $1.4 million of unrecognized tax benefits during the next twelve months due to the expiration of statutes of limitation. | |||||||||||||||||||||||||
In December 2011, the Internal Revenue Service completed its examination of the Company’s federal income tax return for fiscal year 2009 with no significant findings. As a result, during the fiscal year ended June 30, 2012, the Company reversed certain unrecognized tax benefits from fiscal year 2009 and recognized an income tax benefit of approximately $0.8 million. | |||||||||||||||||||||||||
Fiscal years 2011 to 2014 remain open to examination by the Internal Revenue Service, fiscal years 2010 to 2014 remain open to examination by certain state jurisdictions, and fiscal years 2007 to 2014 remain open to examination by certain foreign taxing jurisdictions. The Company’s fiscal years 2011 and 2012 California state income tax returns are currently under examination by the State of California’s Franchise Tax Board. The Company’s fiscal year 2011 Italian income tax return is currently under examination. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
Note 9.Earnings Per Share | |||||||||||||
The following table sets forth the computation of earnings per share for the periods indicated. Weighted-average shares issuable upon the exercise of stock options that were not included in the calculation were 507,000, 470,000 and 220,000 for the fiscal years ended June 30, 2014, 2013 and 2012, respectively, because they were anti-dilutive. | |||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||
($000 except per share) | |||||||||||||
Earnings from continuing operations attributable to | $ | 38,316 | $ | 57,602 | $ | 69,749 | |||||||
II-VI Incorporated | |||||||||||||
Earnings (loss) from discontinued operation | $ | 133 | (6,789 | ) | (9,443 | ) | |||||||
Net Earnings from continuing operations attributable to | $ | 38,449 | $ | 50,813 | $ | 60,306 | |||||||
II-VI Incorporated | |||||||||||||
Divided by: | |||||||||||||
Weighted average shares | 62,248 | 62,411 | 62,823 | ||||||||||
Basic earnings (loss) attributable to II-VI Incorporated | |||||||||||||
per common share: | |||||||||||||
Continuing operations | $ | 0.62 | $ | 0.92 | $ | 1.1 | |||||||
Discontinued operation | $ | - | $ | (0.11 | ) | $ | (0.15 | ) | |||||
Consolidated | $ | 0.62 | $ | 0.81 | $ | 0.96 | |||||||
Earnings from continuing operations attributable to | $ | 38,316 | $ | 57,602 | $ | 69,749 | |||||||
II-VI Incorporated | |||||||||||||
Earnings (loss) from discontinued operation | $ | 133 | (6,789 | ) | (9,443 | ) | |||||||
Net Earnings from continuing operations attributable to | $ | 38,449 | $ | 50,813 | $ | 60,306 | |||||||
II-VI Incorporated | |||||||||||||
Divided by: | |||||||||||||
Weighted average shares | 62,248 | 62,411 | 62,823 | ||||||||||
Diluted effect of common stock equivalents | 1,438 | 1,473 | 1,562 | ||||||||||
Diluted weighted average common shares | 63,686 | 63,884 | 64,385 | ||||||||||
Diluted earnings (loss) attributable to II-VI Incorporated | |||||||||||||
per common share: | |||||||||||||
Continuing operations | $ | 0.6 | $ | 0.9 | $ | 1.08 | |||||||
Discontinued operation | $ | - | $ | (0.11 | ) | $ | (0.15 | ) | |||||
Consolidated | $ | 0.6 | $ | 0.8 | $ | 0.94 | |||||||
Operating_Leases
Operating Leases | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Operating Leases | ' | ||||
Note 10. | Operating Leases | ||||
The Company leases certain property under operating leases that expire at various dates through the year ending July 2061. Future rental commitments applicable to the operating leases at June 30, 2014 are as follows: | |||||
Year Ending June 30, | |||||
$0 | |||||
2015 | $ | 13,298 | |||
2016 | 10,056 | ||||
2017 | 7,191 | ||||
2018 | 5,158 | ||||
2019 | 1,990 | ||||
Thereafter | 18,795 | ||||
Rent expense was approximately $13.6 million, $9.8 million, and $7.6 million for the fiscal years ended June 30, 2014, 2013 and 2012, respectively. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Shared-Based Compensation Plans | ' | ||||||||||||||||||||||||
Note 11. | Share-Based Compensation Plans | ||||||||||||||||||||||||
The Company’s Board of Directors adopted the II-VI Incorporated 2012 Omnibus Incentive Plan (the “Plan”) which was approved by the shareholders at the Annual Meeting in November 2012. The Plan provides for the grant of non-qualified stock options, stock appreciation rights, restricted shares, restricted share units, deferred shares, performance shares and performance share units to employees, officers and directors of the Company. The maximum number of shares of the Company’s Common Stock authorized for issuance under the Plan shall not in the aggregate exceed 1,900,000 shares of Common Stock, not including any remaining shares forfeited under the predecessor plan that may be rolled into the Plan. The Plan has vesting provisions predicated upon the death, retirement or disability of the grantee. As of June 30, 2014, there were approximately 1,242,317 shares available to be issued under the Plan, including forfeited shares from predecessor plans. | |||||||||||||||||||||||||
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. The Company accounts for cash-based stock appreciation rights, cash-based restricted share unit awards and cash-based performance share unit awards as liability awards, in accordance with applicable accounting standards. | |||||||||||||||||||||||||
Share-based compensation expense for the fiscal years ended June 30, 2014, 2013 and 2012 is as follows ($000): | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | 30-Jun-12 | |||||||||||||||||||||||
Stock Options and Cash-Based Stock Appreciation Rights | 5,818 | $ | 5,046 | $ | 6,025 | ||||||||||||||||||||
Restricted Share Awards and Cash-Based Restricted Share | 4,868 | 4,411 | 2,945 | ||||||||||||||||||||||
Unit Awards | |||||||||||||||||||||||||
Performance Share Awards and Cash-Based Performance Share | 2,311 | 3,200 | 2,614 | ||||||||||||||||||||||
Unit Awards | |||||||||||||||||||||||||
$ | 12,997 | $ | 12,657 | $ | 11,584 | ||||||||||||||||||||
The share-based compensation expense is allocated approximately 20% to cost of goods sold and 80% to selling, general and administrative expense in the Consolidated Statements of Earnings, based on the employee classification of the grantees. Share-based compensation expense associated with liability awards was $0.7 million in fiscal years 2014 and 2013, respectively, and was not significant in fiscal year 2012. | |||||||||||||||||||||||||
Stock Options and Cash-Based Stock Appreciation Rights: | |||||||||||||||||||||||||
The Company utilized the Black-Scholes valuation model for estimating the fair value of stock option expense. During the fiscal years ended June 30, 2014, 2013 and 2012, the weighted-average fair value of options granted under the stock option plan was $8.21, $8.37 and $9.32, respectively, per option using the following assumptions: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | 1.71 | % | 0.98 | % | 1.05 | % | |||||||||||||||||||
Expected volatility | 47 | % | 49 | % | 59 | % | |||||||||||||||||||
Expected life of options | 5.56 years | 5.66 years | 5.47 years | ||||||||||||||||||||||
Dividend yield | None | None | None | ||||||||||||||||||||||
The risk-free interest rate is derived from the average U.S. Treasury Note rate during the period, which approximates the rate in effect at the time of grant related to the expected life of the options. The risk-free interest rate shown above is the weighted average rate for all options granted during the fiscal year. Expected volatility is based on the historical volatility of the Company’s Common Stock over the period commensurate with the expected life of the options. The expected life calculation is based on the observed time to post-vesting exercise and/or forfeitures of options by our employees. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no current intention to pay cash dividends in the future. The estimated annualized forfeitures are based on the Company’s historical experience of option pre-vesting cancellations and are estimated at a rate of 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. | |||||||||||||||||||||||||
Stock option and cash-based stock appreciation rights activity during the fiscal year ended June 30, 2014 was as follows: | |||||||||||||||||||||||||
Stock Options | Cash-Based Stock Appreciation Rights | ||||||||||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||||||||||
Shares | Exercise Price | Rights | Exercise Price | ||||||||||||||||||||||
Outstanding - July 1, 2013 | 4,670,011 | $ | 15.59 | 60,820 | $ | 18.78 | |||||||||||||||||||
Granted | 612,180 | $ | 18.38 | 58,470 | $ | 17.88 | |||||||||||||||||||
Exercised | (438,449 | ) | $ | 10.22 | (460 | ) | $ | 18.93 | |||||||||||||||||
Forfeited and Expired | (139,188 | ) | $ | 18.51 | (10,112 | ) | $ | 18.94 | |||||||||||||||||
Outstanding - June 30, 2014 | 4,704,554 | $ | 16.37 | 108,718 | $ | 18.28 | |||||||||||||||||||
Exercisable - June 30, 2014 | 3,025,156 | $ | 15.48 | 10,574 | $ | 18.79 | |||||||||||||||||||
As of June 30, 2014, 2013 and 2012, the aggregate intrinsic value of stock options and cash-based stock appreciation rights outstanding and exercisable was $5.2 million, $9.7 million and $14.6 million, respectively. Aggregate intrinsic value represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year ended June 30, 2014, and the option’s exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2014. This amount varies based on the fair market value of the Company’s stock. The total intrinsic value of stock options and cash-based stock appreciation rights exercised during the fiscal years ended June 30, 2014, 2013, and 2012 was $3.1 million, $2.9 million, and $4.5 million, respectively. As of June 30, 2014, total unrecognized compensation cost related to non-vested stock options and cash-based stock appreciation rights was $9.4 million. This cost is expected to be recognized over a weighted-average period of approximately three years. Outstanding and exercisable stock options at June 30, 2014 were as follows: | |||||||||||||||||||||||||
Stock Options and Cash-Based Stock | Stock Options and Cash-Based Stock | ||||||||||||||||||||||||
Appreciation Rights Outstanding | Appreciation Rights Exercisable | ||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | ||||||||||||||||||||||
Number of | Average Remaining | Average | Number of | Average Remaining | Average | ||||||||||||||||||||
Range of | Shares or | Contractual Term | Exercise | Shares or | Contractual Term | Exercise | |||||||||||||||||||
Exercise Prices | Rights | (Years) | Price | Rights | (Years) | Price | |||||||||||||||||||
$8.44-$12.80 | 1,331,888 | 3.05 | $ | 10.7 | 1,233,668 | 2.88 | 10.59 | ||||||||||||||||||
$13.17-$20.26 | 2,831,846 | 7 | $ | 17.45 | 1,196,748 | 5.44 | 16.47 | ||||||||||||||||||
$20.47-$27.18 | 649,538 | 4.37 | $ | 23.52 | 605,314 | 4.18 | 23.49 | ||||||||||||||||||
4,813,272 | 5.52 | $ | 16.42 | 3,035,730 | 4.14 | 15.49 | |||||||||||||||||||
Restricted Share Awards and Cash-Based Restricted Share Unit Awards: | |||||||||||||||||||||||||
Restricted share awards and cash-based restricted share unit awards compensation expense was calculated based on the number of shares or units expected to be earned by the grantee multiplied by the stock price at the date of grant, and is being recognized over the vesting period. Generally, the restricted share awards and restricted share unit awards have a three year cliff-vesting provision and an estimated forfeiture rate of 7.5%. | |||||||||||||||||||||||||
Restricted share and cash-based restricted share unit activity during the fiscal year ended June 30, 2014, was as follows: | |||||||||||||||||||||||||
Restricted Share Awards | Cash-Based Restricted Share Units | ||||||||||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||||||||||
Shares | Grant Date Fair Value | Units | Grant Date Fair Value | ||||||||||||||||||||||
Nonvested - June 30, 2013 | 798,624 | $ | 18.18 | 30,270 | $ | 18.78 | |||||||||||||||||||
Granted | 223,760 | $ | 17.26 | 39,880 | $ | 17.05 | |||||||||||||||||||
Vested | (195,707 | ) | $ | 19.19 | - | $ | - | ||||||||||||||||||
Forfeited | (42,642 | ) | $ | 18.29 | (5,840 | ) | $ | 18.63 | |||||||||||||||||
Nonvested - June 30, 2014 | 784,035 | $ | 17.66 | 64,310 | $ | 17.72 | |||||||||||||||||||
As of June 30, 2014, total unrecognized compensation cost related to non-vested restricted share and cash-based restricted share unit awards was $5.7 million. This cost is expected to be recognized over a weighted-average period of approximately two years. The restricted share compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the date of grant and is being recognized over the vesting period. The cash-based restricted share unit compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the period-end date and is being recognized over the vesting period. The total fair value of the restricted share and cash-based restricted share unit awards granted during the years ended June 30, 2014, 2013 and 2012, was $4.5 million, $7.0 million and $5.5 million, respectively. The total fair value of restricted shares vested was $3.8 million and $0.7 million during fiscal years 2014 and 2013, respectively, and was not significant during fiscal year 2012. | |||||||||||||||||||||||||
Performance Share Awards and Cash-Based Performance Share Unit Awards: | |||||||||||||||||||||||||
The Compensation Committee of the Board of Directors of the Company granted certain executive officers and employees performance share awards and performance share unit awards under the Plan. As of June 30, 2014, 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 the creation of long-term shareholder value. These awards are payable only if the Company achieves specified levels of financial performance during the performance periods. | |||||||||||||||||||||||||
The performance share compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the date of grant, and is being recognized over the vesting period. The cash-based performance share unit compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the period-end date, and is being recognized over the vesting period. Performance share and cash-based performance share unit award activity relating to the plan during the year ended June 30, 2014, was as follows: | |||||||||||||||||||||||||
Performance Share Awards | Cash-Based Performance Share Units | ||||||||||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||||||||||
Shares | Grant Date Fair Value | Units | Grant Date Fair Value | ||||||||||||||||||||||
Nonvested - June 30, 2013 | 359,754 | $ | 17.85 | 107,096 | $ | 18.93 | |||||||||||||||||||
Granted | 105,900 | $ | 19.37 | 2,150 | $ | 19.37 | |||||||||||||||||||
Vested | (77,656 | ) | $ | 17.53 | - | $ | - | ||||||||||||||||||
Forfeited | (55,818 | ) | $ | 17.56 | (10,102 | ) | $ | 18.93 | |||||||||||||||||
Nonvested - June 30, 2014 | 332,180 | $ | 18.46 | 99,144 | $ | 18.94 | |||||||||||||||||||
As of June 30, 2014, total unrecognized compensation cost related to non-vested performance share and cash-based performance share unit awards was $3.3 million. This cost is expected to be recognized over a weighted-average period of approximately two years. The total fair value of the performance share and cash-based performance share unit awards granted during the fiscal years ended June 30, 2014, 2013 and 2012 was $2.1 million, $5.9 million and $3.3 million, respectively. The total fair value of performance shares vested during the fiscal years ended June 30, 2014, 2013 and 2012 was $1.3 million, $2.6 million and $1.6 million, respectively. |
Segment_and_Geographic_Reporti
Segment and Geographic Reporting | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Segment and Geographic Reporting | ' | |||||||||||||||||||||||||||
Note 12. | Segment and Geographic 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 Laser Enterprise 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 June 30, 2014. 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 June 30, 2014: (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 December 2013, the Company completed the discontinuance of its tellurium product line by exiting all business activities associated with this product. 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 the Corporate Chief Operating Officer, 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, Thailand, Hong Kong 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, 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 manufactures 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: | ||||||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Eliminations | Total | ||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Revenues | $ | 209,658 | $ | 144,677 | $ | 98,324 | $ | 115,394 | $ | 115,208 | $ | - | $ | 683,261 | ||||||||||||||
Inter-segment revenues | 1,608 | 2,406 | 6,514 | 6,388 | 563 | (17,479 | ) | - | ||||||||||||||||||||
Segment earnings (loss) | 40,736 | 9,814 | 12,851 | 9,419 | (26,334 | ) | - | 46,486 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | - | (4,479 | ) | ||||||||||||||||||||
Other income, net | - | - | - | - | - | - | 3,634 | |||||||||||||||||||||
Income taxes | - | - | - | - | - | - | (7,325 | ) | ||||||||||||||||||||
Earnings from discontinued operation | - | - | - | - | - | - | 133 | |||||||||||||||||||||
Net earnings | - | - | - | - | - | - | 38,449 | |||||||||||||||||||||
Depreciation and amortization | 9,174 | 16,764 | 8,111 | 9,947 | 9,102 | - | 53,098 | |||||||||||||||||||||
Segment assets | 231,874 | 295,953 | 117,730 | 175,986 | 250,383 | - | 1,071,926 | |||||||||||||||||||||
Expenditures for property, plant and equipment | 9,719 | 8,171 | 5,539 | 3,525 | 2,266 | - | 29,220 | |||||||||||||||||||||
Equity investment | - | - | - | 11,589 | - | - | 11,589 | |||||||||||||||||||||
Goodwill | 9,754 | 60,408 | 30,712 | 22,178 | 73,093 | - | 196,145 | |||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Revenues | $ | 203,319 | $ | 154,852 | $ | 97,116 | $ | 95,788 | $ | - | $ | 551,075 | ||||||||||||||||
Inter-segment revenues | 2,618 | 896 | 4,853 | 5,311 | (13,678 | ) | - | |||||||||||||||||||||
Segment earnings | 49,457 | 19,628 | 656 | 1,750 | 71,491 | |||||||||||||||||||||||
Interest expense | - | - | - | - | - | (1,160 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 7,155 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (18,766 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (6,789 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 51,931 | ||||||||||||||||||||||
Depreciation and amortization | 8,423 | 17,286 | 7,023 | 8,060 | - | 40,792 | ||||||||||||||||||||||
Segment assets | 238,700 | 307,431 | 139,923 | 177,748 | - | 863,802 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 5,812 | 9,170 | 3,909 | 6,314 | - | 25,205 | ||||||||||||||||||||||
Equity investment | - | - | - | 11,203 | - | 11,203 | ||||||||||||||||||||||
Goodwill | 9,677 | 60,269 | 30,712 | 22,694 | - | 123,352 | ||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||
Revenues | $ | 201,611 | $ | 140,001 | $ | 100,235 | $ | 74,556 | $ | - | $ | 516,403 | ||||||||||||||||
Inter-segment revenues | 3,174 | 2,135 | 7,589 | 4,295 | (17,193 | ) | - | |||||||||||||||||||||
Segment earnings | 51,095 | 14,060 | 7,925 | 8,442 | 81,522 | |||||||||||||||||||||||
Interest expense | - | - | - | - | - | (212 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 7,168 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (17,760 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (9,443 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 61,275 | ||||||||||||||||||||||
Depreciation and amortization | 8,480 | 15,803 | 5,957 | 4,283 | - | 34,523 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 8,072 | 12,249 | 11,983 | 10,493 | - | 42,797 | ||||||||||||||||||||||
Geographic information for revenues from the country of origin, and long-lived assets from the country of origin, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, is as follows: | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Year-Ended June 30, | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
United States | $ | 263,493 | $ | 251,735 | $ | 204,706 | ||||||||||||||||||||||
Non-United States | ||||||||||||||||||||||||||||
China | 114,247 | 123,306 | 123,348 | |||||||||||||||||||||||||
Switzerland | 70,260 | 10,268 | 11,714 | |||||||||||||||||||||||||
Germany | 69,983 | 59,628 | 51,962 | |||||||||||||||||||||||||
Hong Kong | 54,602 | - | - | |||||||||||||||||||||||||
Japan | 38,110 | 29,462 | 35,915 | |||||||||||||||||||||||||
Vietnam | 23,141 | 29,425 | 31,500 | |||||||||||||||||||||||||
Philippines | 14,959 | 17,400 | 26,185 | |||||||||||||||||||||||||
Italy | 8,897 | 7,593 | 7,214 | |||||||||||||||||||||||||
Singapore | 8,273 | 6,280 | 7,238 | |||||||||||||||||||||||||
United Kingdom | 7,148 | 6,865 | 6,026 | |||||||||||||||||||||||||
Belgium | 6,578 | 5,821 | 6,010 | |||||||||||||||||||||||||
Australia | 3,570 | 3,292 | 4,585 | |||||||||||||||||||||||||
Total Non-United States | 419,768 | 299,340 | 311,697 | |||||||||||||||||||||||||
$ | 683,261 | $ | 551,075 | $ | 516,403 | |||||||||||||||||||||||
Long-Lived Assets | ||||||||||||||||||||||||||||
June 30, | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
United States | $ | 109,138 | $ | 110,337 | $ | 85,709 | ||||||||||||||||||||||
Non-United States | ||||||||||||||||||||||||||||
China | 45,667 | 43,139 | 45,412 | |||||||||||||||||||||||||
Switzerland | 22,524 | 5 | 10 | |||||||||||||||||||||||||
Germany | 16,129 | 2,107 | 1,581 | |||||||||||||||||||||||||
Vietnam | 9,107 | 10,081 | 10,278 | |||||||||||||||||||||||||
Philippines | 6,205 | 7,207 | 8,692 | |||||||||||||||||||||||||
Hong Kong | 5,111 | - | - | |||||||||||||||||||||||||
Other | 2,218 | 3,244 | 4,143 | |||||||||||||||||||||||||
Total Non-United States | 106,961 | 65,783 | 70,116 | |||||||||||||||||||||||||
$ | 216,099 | $ | 176,120 | $ | 155,825 | |||||||||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Note 13. | Fair Value of Financial Instruments | |||||||||||||||
The FASB defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous markets for the asset and liability in an orderly transaction between market participants at the measurement date. The Company estimates fair value of its financial instruments utilizing an established three-level hierarchy in accordance with U.S. GAAP. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: | ||||||||||||||||
· | Level 1 – Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. | |||||||||||||||
· | Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. | |||||||||||||||
· | Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurements. | |||||||||||||||
The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. At June 30, 2014, 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. During fiscal year 2014, the Company settled a contingent earnout arrangement related to the acquisition of LightWorks in the amount of $3.0 million. The LightWorks earnout arrangement provided 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. The fair value of the earnout arrangement was based on significant inputs not observable in the market and represented a Level 3 measurement. Included in Other expense (income), net for the year ended June 30, 2014 is a $0.3 million unrealized gain due to a fair value remeasurement that reduced the earnout liability. The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis as of June 30, 2014 ($000): | ||||||||||||||||
Fair Value Measurements at June 30, 2014 Using: | ||||||||||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | Significant | |||||||||||||||
Markets | ||||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
June 30,2014 | Assets | Inputs | Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Liabilities: | ||||||||||||||||
Contingent Earnout Arrangement | $ | - | $ | - | $ | - | $ | - | ||||||||
Foreign currency forward contracts | $ | 54 | $ | - | $ | 54 | $ | - | ||||||||
Fair Value Measurements at June 30, 2013 Using: | ||||||||||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | Significant | |||||||||||||||
Markets | ||||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
June 30,2013 | Assets | Inputs | Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Liabilities: | ||||||||||||||||
Contingent Earnout Arrangement | $ | 3,300 | $ | - | $ | - | $ | 3,300 | ||||||||
Foreign currency forward contracts | $ | 23 | $ | - | $ | 23 | $ | - | ||||||||
The Company’s policy is to report transfers into and out of Levels 1 and 2 of the fair value hierarchy at fair values as of the beginning of the period in which the transfers occur. There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy during fiscal years 2014 and 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: | ||||||||||||||||
Significant Other | ||||||||||||||||
Unobservable Inputs | ||||||||||||||||
(Level 3) | ||||||||||||||||
Balance at June 30, 2013 | $ | 3,300 | ||||||||||||||
Payment of earnout arrangement | (3,000 | ) | ||||||||||||||
Changes in fair value | (300 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | - | ||||||||||||||
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 are variable interest rates and accordingly their carrying amounts approximate fair value. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |
Jun. 30, 2014 | ||
Derivative Instruments | ' | |
Note 14. | Derivative Instruments | |
The Company, from time to time, purchases foreign currency forward exchange contracts, primarily in Japanese Yen, that permit it to sell specified amounts of these foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. These contracts are entered into to limit transactional exposure to changes in currency exchange rates of export sales transactions in which settlement will occur in future periods and which otherwise would expose the Company, on the basis of its aggregate net cash flows in respective currencies, to foreign currency risk. | ||
The Company has recorded the fair market value of these contracts in the Company’s financial statements. These contracts had a total notional amount of $7.4 million and $4.7 million at June 30, 2014 and June 30, 2013, respectively. As of June 30, 2014, these forward contracts had expiration dates ranging from August 2014 through October 2014, with Japanese Yen denominations individually at 250 million Yen. The Company does not account for these contracts as hedges as defined by U.S. GAAP and records the change in the fair value of these contracts in Other expense (income), net in the Consolidated Statements of Earnings as they occur. The fair value measurement takes into consideration foreign currency rates and the current creditworthiness of the counterparties to these contracts, as applicable, and is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments and thus represents a Level 2 measurement. These contracts are recorded in other accrued liabilities in the Company’s Consolidated Balance Sheets. The change in the fair value of these contracts for the fiscal years ended June 30, 2014, 2013 and 2012 was insignificant. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Employee Benefit Plans | ' | |||
Note 15. | Employee Benefit Plans | |||
Eligible U.S. employees of the Company participate in a profit sharing retirement plan. Contributions accrued for the plan are made at the discretion of the Company’s board of directors and were $2.5 million, $2.2 million, and $2.8 million for the years ended June 30, 2014, 2013 and 2012, respectively. | ||||
The Company has an employee stock purchase plan available for employees who have completed six months of continuous employment with the Company. The employee may purchase the Company’s Common Stock at 5% below the prevailing market price. The amount of shares which may be bought by an employee during each fiscal year is limited to 10% of the employee’s base pay. This plan, as amended, limits the number of shares of Common Stock available for purchase to 1,600,000 shares. There were 543,234 and 560,034 shares of Common Stock available for purchase under the plan at June 30, 2014 and 2013, respectively. | ||||
Switzerland Defined Benefit Plan | ||||
In conjunction with the acquisition of the Oclaro’s Switzerland-Based Semiconductor Laser Business we assumed a pension plan covering employees of our Swiss subsidiary (Swiss Plan). Employer and employee contributions are made to the Swiss plan based on various percentages of salary and wages that vary according to employee age and other factors. Employer contributions to the Swiss Plan for year ended June 30, 2014 were $2.3 million. Expected employer contributions in fiscal year 2015 are $2.1 million. | ||||
The funded status of the Swiss Plan in the fiscal year ended June 30, 2014 was as follows: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Change in projected benefit obligation: | ||||
Projected benefit obligation, date of acquisition | $ | 38,748 | ||
Service cost | 3,375 | |||
Interest cost | 812 | |||
Plan amendments | (1,661 | ) | ||
Participant contributions | 1,110 | |||
Benefits (paid) received | (3,959 | ) | ||
Actuarial (gain) loss on obligation | (867 | ) | ||
Currency translation adjustment | 1,832 | |||
Projected benefit obligation, end of period | $ | 39,390 | ||
Change in plan assets: | ||||
Plan assets at fair value, date of acquisition | 30,167 | |||
Actual return on plan assets | 776 | |||
Employer contributions | 2,253 | |||
Participant contributions | 1,110 | |||
Benefits (paid) received | (3,959 | ) | ||
Currency translation adjustment | 1,617 | |||
Plan assets at fair value, end of period | $ | 31,965 | ||
Amounts recognized in consolidated balance sheets: | ||||
Other non-current assets: | ||||
Deferred tax asset | $ | 1,570 | ||
Other non-current liabilities: | ||||
Underfunded pension liability | $ | 7,425 | ||
Amounts recognized in accumulated other comprehensive | ||||
income, net of tax: | ||||
Pension adjustment | $ | 1,443 | ||
Accumulated benefit obligation, end of period | $ | 35,581 | ||
Net periodic pension cost associated with the Swiss Plan in the fiscal year ended June 30, 2014 included the following components: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Service cost | $ | 3,375 | ||
Interest cost | 812 | |||
Expected return on plan assets | (1,338 | ) | ||
Net amortization | - | |||
Net period pension cost | $ | 2,849 | ||
The Company expects to recognize approximately $0.3 million as a component of net periodic benefit cost in fiscal 2015 as a result of amortization from accumulated other comprehensive income. | ||||
The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2014 using the following assumptions: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Discount rate | 2 | % | ||
Salary increase rate | 2 | % | ||
Expected return on plan assets | 3.5 | % | ||
Expected average remaining working life (in years) | 13.1 | |||
The discount rate is based on assumed pension benefit maturity and estimates developed using the rate of return and yield curves for high quality Swiss corporate and government bonds. The salary increase rate is based on our best assessment for on-going increases over time. The expected long-term rate of return on plan assets is based on the expected asset allocation and taking into consideration historical long-term rates of return for the relevant asset categories. | ||||
The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2014, the Swiss Plan’s asset allocation was as follows: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Fixed income investments | 22 | % | ||
Equity investments | 54 | % | ||
Real estate | 14 | % | ||
Cash | 8 | % | ||
Alternative investments | 2 | % | ||
100 | % | |||
The Swiss Plan assets are measured at fair value and are classified into two distinct levels of the fair value hierarchy. The Swiss Plan assets are comprised of Level 1 assets, which include cash, equity investments and fixed income investments, and Level 3 assets, which include real estate and alternative investments. The investment strategy of the Swiss Plan is to achieve a consistent long-term return which will provide sufficient funding for future pension obligations while limiting risk. The investment strategy is reviewed regularly. | ||||
Estimated future benefit payments under the Swiss Plan are estimated to be $1.3 million in fiscal year 2015, $1.1 million in fiscal year 2016, $1.6 million in fiscal year 2017, $0.7 million in fiscal year 2018, $3.1 million in fiscal year 2019 and $10.7 million thereafter. These benefits will be paid out of the assets of the Swiss Plan and not by the Company. | ||||
PRM Defined Benefit Plan | ||||
As a requirement of a collective bargaining agreement, PRM maintains a defined benefit plan for substantially all of its employees. The plan provides for retirement benefits based on a certain percentage of the latest monthly salary of an employee per year of service. The pension liability was $0.6 million and $1.1 million at June 30, 2014 and June 30, 2013, respectively. The PRM Plan is an unfunded pension plan under which the Company makes payments directly to employees. As these payments are made directly by the Company, there are no separate assets utilized to fund this plan. | ||||
The Company has no program for post-retirement health and welfare benefits. | ||||
The II-VI Incorporated Deferred Compensation Plan (the “Compensation Plan”) is designed to allow officers and key employees of the Company to defer receipt of compensation into a trust fund for retirement purposes. Under the Compensation Plan, eligible participants can elect to defer up to 100% of discretionary incentive compensation, performance share awards and restricted share awards into the Compensation Plan. The Compensation Plan is a nonqualified, defined contribution employees’ retirement plan. At the Company’s discretion, the Compensation Plan may be funded by the Company making contributions based on compensation deferrals, matching contributions and discretionary contributions. Compensation deferrals will be based on an election by the participant to defer a percentage of compensation under the Compensation Plan. All assets in the Compensation Plan are subject to claims of the Company’s creditors until such amounts are paid to the Compensation Plan participants. Employees of the Company made contributions to the Compensation Plan in the amounts of approximately $1.9 million, $1.8 million, and $1.4 million for the fiscal years ended June 30, 2014, 2013, and 2012, respectively. There were no employer contributions made to the Compensation Plan for the fiscal years ended June 30, 2014, 2013 and 2012. |
Other_Accrued_Liabilities
Other Accrued Liabilities | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Other Accrued Liabilities | ' | ||||||||||||
Note 16. | Other Accrued Liabilities | ||||||||||||
The components of other accrued liabilities were as follows: | |||||||||||||
June 30, | 2014 | 2013 | |||||||||||
$0 | |||||||||||||
Acquisition holdbacks | $ | 10,000 | $ | - | |||||||||
Redeemable noncontrolling interest liability | - | 8,568 | |||||||||||
Earnout arrangement | - | 3,300 | |||||||||||
Warranty reserve | 2,859 | 1,661 | |||||||||||
Other accrued liabilities | 18,662 | 21,166 | |||||||||||
$ | 31,521 | $ | 34,695 | ||||||||||
In June 2013, the Company received notice from the noncontrolling interest holder of HIGHYAG of the intention to exercise the put option. The value of the put option was calculated using a formulaic model based upon earnings before interest, income taxes, depreciation and amortization (EBITDA), revenue growth and other variables. The price for the 25.07% noncontrolling interest the Company did not already own was $7.6 million; in addition a dividend of $1.0 million also was declared and was paid to the noncontrolling interest holder in fiscal year 2014. Both of these amounts are included in the Consolidated Balance Sheet as of June 30, 2013 as a current liability within Other accrued liabilities as these amounts were paid in August 2013. | |||||||||||||
Changes in the carrying amount of our redeemable noncontrolling interest were as follows: | |||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||
$0 | |||||||||||||
Balance at Beginning of Year | $ | - | $ | 5,160 | $ | 1,828 | |||||||
Net earnings attributable to redeemable noncontrolling interest | - | 1,118 | 969 | ||||||||||
Other changes | - | (585 | ) | (267 | ) | ||||||||
Redemption value adjustment to redeemable noncontrolling interest | - | 2,875 | 2,630 | ||||||||||
Reclassification of redeemable noncontrolling interest to Other accrued liabilities | - | (8,568 | ) | - | |||||||||
Balance at End of Year | $ | - | $ | - | $ | 5,160 | |||||||
The following table summarizes the change in the carrying value of the company’s warranty reserve included in Other Accrued Liabilities as of and for the year ended June 30, 2014. | |||||||||||||
Year Ended June 30, | 2014 | ||||||||||||
$0 | |||||||||||||
Balance-Beginning of Year | $ | 1,661 | |||||||||||
Settlements during the period | (1,843 | ) | |||||||||||
Additional warranty liability recorded | 1,868 | ||||||||||||
Warranty liability assumed through acquisitions | 1,173 | ||||||||||||
Balance-End of Year | $ | 2,859 | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies | ' | ||||
Note 17. | Commitments and Contingencies | ||||
The Company has purchase commitments for materials and supplies as part of the ordinary conduct of business. A portion of the commitments are long-term and are based on minimum purchase requirements. Certain short-term raw material purchase commitments have a variable price component which is based on market pricing at the time of purchase. Due to the proprietary nature of some of the Company’s materials and processes, certain contracts may contain penalty provisions for early termination. The Company does not believe that a significant amount of penalties is reasonably likely to be incurred under these commitments based upon historical experience and current expectation. Total future commitments are as follows: | |||||
Year Ending June 30, | |||||
$0 | |||||
2015 | $ | 15,906 | |||
2016 | 489 | ||||
2017 | 488 | ||||
2018 | - | ||||
2019 | $ | - | |||
Capital_Lease
Capital Lease | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Capital Lease | ' | ||||
Note 18. | Capital Lease | ||||
In December 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 | ||||
2015 | $ | 1,071 | |||
2016 | 1,071 | ||||
2017 | 1,071 | ||||
2018 | 1,071 | ||||
2019 | 1,071 | ||||
Thereafter | 12,228 | ||||
Total minimum lease payments | 17,583 | ||||
Less amount representing interest | 5,947 | ||||
Present value of capitalized payments | 11,636 | ||||
Less: current portion | 453 | ||||
Long-term portion | $ | 11,183 | |||
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 Sheets as of June 30, 2014. The present value of the capitalized payments of $11.6 million was recorded in Property, plant & equipment, net, in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2014, with associated depreciation expense being recorded over the 17 year life of the lease. | |||||
In August 2014, the Company exited its capital lease obligation by purchasing the existing manufacturing facility in Berlin, Germany utilized by the Company’s HIGHYAG business. The total cash paid for this purchase was approximately $13.4 million and was financed through existing cash balances at June 30, 2014. |
Share_Repurchase_Program
Share Repurchase Program | 12 Months Ended | |
Jun. 30, 2014 | ||
Share Repurchase Program | ' | |
Note 19. | Share Repurchase Programs | |
In February 2014 and May 2012, the Board of Directors authorized the Company to purchase up to $20 million and $25 million, respectively, of its Common Stock. The repurchase programs called for shares to be purchased in the open market or in private transactions from time to time. Shares purchased by the Company are retained as treasury stock and available for general corporate purposes. During the fiscal years ended June 30, 2014, 2013 and 2012, the Company purchased 1,333,355 shares, 1,141,022 shares, 301,716 shares of its Common Stock for $20.0 million, $20.0 million, and $5.0 million, respectively, under the repurchase programs. | ||
In August 2014, the Board of Directors authorized the Company to purchase up to $50.0 million of its Common Stock. The repurchase program has no expiration and calls for shares to be purchased in the open market or in private transactions from time to time. Shares purchased by the Company will be retained as treasury stock and available for general corporate purposes. During August 2014, the Company purchased 180,000 shares of its Common Stock for $2.5 million under this new repurchase program. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
Quarterly Financial Data (unaudited) | |||||||||||||||||
Fiscal 2014 | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
Quarter Ended | 2013 | 2013 | 2014 | 2014 | |||||||||||||
$0 | |||||||||||||||||
2014 | |||||||||||||||||
Net revenues | $ | 150,020 | $ | 171,765 | $ | 173,555 | $ | 187,921 | |||||||||
Cost of goods sold | 93,709 | 118,371 | 118,865 | 125,600 | |||||||||||||
Internal research and development | 7,747 | 11,355 | 12,099 | 11,322 | |||||||||||||
Selling, general and administrative | 35,093 | 32,471 | 33,848 | 36,295 | |||||||||||||
Interest expense | 483 | 1,169 | 1,412 | 1,415 | |||||||||||||
Other expense (income) - net | 53 | (1,125 | ) | (1,694 | ) | (868 | ) | ||||||||||
Earnings from continuing operations before income taxes | 12,935 | 9,524 | 9,025 | 14,157 | |||||||||||||
Income taxes | 3,243 | 2,086 | 494 | 1,502 | |||||||||||||
Earnings from continuing operations | 9,692 | $ | 7,438 | $ | 8,531 | $ | 12,655 | ||||||||||
Earnings (loss) from discontinued operations, net of income taxes | 2 | $ | 131 | $ | - | $ | - | ||||||||||
Net Earnings Attributable to II-VI Incorporated | $ | 9,694 | $ | 7,569 | $ | 8,531 | $ | 12,655 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Basic earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.12 | $ | 0.14 | $ | 0.21 | |||||||||
Discontinued operation | $ | 0 | $ | - | $ | - | $ | - | |||||||||
Consolidated | $ | 0.16 | $ | 0.12 | $ | 0.14 | $ | 0.21 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Diluted earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.15 | $ | 0.12 | $ | 0.13 | $ | 0.20 | |||||||||
Discontinued operation | $ | 0 | $ | - | $ | - | $ | - | |||||||||
Consolidated | $ | 0.15 | $ | 0.12 | $ | 0.13 | $ | 0.2 | |||||||||
Fiscal 2013 | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
Quarter Ended | 2012 | 2012 | 2013 | 2013 | |||||||||||||
$0 | |||||||||||||||||
2013 | |||||||||||||||||
Net revenues | $ | 127,998 | $ | 125,107 | $ | 143,940 | $ | 154,030 | |||||||||
Cost of goods sold | 77,599 | 77,839 | 92,986 | 99,134 | |||||||||||||
Internal research and development | 5,585 | 5,626 | 5,781 | 5,697 | |||||||||||||
Selling, general and administrative | 26,356 | 26,174 | 27,004 | 29,803 | |||||||||||||
Interest expense | 36 | 223 | 449 | 452 | |||||||||||||
Other expense (income) - net | (761 | ) | (4,551 | ) | (1,401 | ) | (442 | ) | |||||||||
Earnings from continuing operations before income taxes | 19,183 | 19,796 | 19,121 | 19,386 | |||||||||||||
Income taxes | 4,262 | 6,721 | 2,861 | 4,922 | |||||||||||||
Earnings from continuing operations | 14,921 | $ | 13,075 | $ | 16,260 | $ | 14,464 | ||||||||||
Earnings (loss) from discontinued operations, net of income taxes | (1,789 | ) | $ | (608 | ) | $ | (166 | ) | $ | (4,226 | ) | ||||||
Net Earnings | 13,132 | $ | 12,467 | $ | 16,094 | $ | 10,238 | ||||||||||
Net Earnings Attributable to Noncontrolling Interest | 414 | $ | 267 | $ | 225 | $ | 212 | ||||||||||
Net Earnings Attributable to II-VI Incorporated | $ | 12,718 | $ | 12,200 | $ | 15,869 | $ | 10,026 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Basic earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.2 | $ | 0.26 | $ | 0.23 | |||||||||
Discontinued operation | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||||
Consolidated | $ | 0.2 | $ | 0.19 | $ | 0.26 | $ | 0.16 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Diluted earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.2 | $ | 0.25 | $ | 0.22 | |||||||||
Discontinued operation | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||||
Consolidated | $ | 0.2 | $ | 0.19 | $ | 0.25 | $ | 0.16 | |||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||||||||||
SCHEDULE II | ||||||||||||||||||||||||
II-VI INCORPORATED AND SUBSIDIARIES | ||||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||||
YEARS ENDED JUNE 30, 2014, 2013, AND 2012 | ||||||||||||||||||||||||
(IN THOUSANDS OF DOLLARS) | ||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||
Balance at | Charged | Charged | Deduction | Balance | ||||||||||||||||||||
Beginning | to | to Other | from | at End | ||||||||||||||||||||
of Year | Expense | Accounts | Reserves | of Year | ||||||||||||||||||||
YEAR ENDED JUNE 30, 2014: | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,479 | $ | 993 | $ | - | $ | (620 | ) | (3 | ) | $ | 1,852 | |||||||||||
Warranty reserves | $ | 1,661 | $ | 1,868 | $ | 1,173 | (1 | ) | $ | (1,843 | ) | $ | 2,859 | |||||||||||
YEAR ENDED JUNE 30, 2013: | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,536 | $ | (92 | ) | $ | 179 | (2 | ) | $ | (144 | ) | (3 | ) | $ | 1,479 | ||||||||
Warranty reserves | $ | 1,247 | $ | 1,851 | $ | - | $ | (1,437 | ) | $ | 1,661 | |||||||||||||
YEAR ENDED JUNE 30, 2012: | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 766 | $ | 940 | $ | (18 | ) | $ | (152 | ) | (3 | ) | $ | 1,536 | ||||||||||
Warranty reserves | $ | 1,187 | $ | 1,710 | $ | - | $ | (1,650 | ) | $ | 1,247 | |||||||||||||
-1 | Relates to the warranty reserve acquired from the acquisitions. | |||||||||||||||||||||||
-2 | Primarily relates to allowance for doubtful accounts from the acquisitions. | |||||||||||||||||||||||
-3 | Primarily relates to write-offs of accounts receivable. |
Nature_of_Business_and_Summary1
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2014 | |
Principles of Consolidation | ' |
Principles of Consolidation. The consolidated financial statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. | |
Foreign Currency Translation | ' |
Foreign Currency Translation. For II-VI Singapore Pte., Ltd. and its subsidiaries, II-VI Suisse S.a.r.l., Pacific Rare Specialty Metals & Chemicals, Inc. (“PRM”), Photop AOFR Pty. Ltd. (“AOFR”), II-VI Laser Enterprise and II-VI Network Solutions Division the functional currency is the United States (U.S.) dollar. The determination of the functional currency is made based on the appropriate economic and management indicators. | |
For all other foreign subsidiaries, the functional currency is the local currency. Assets and liabilities of those operations are translated into U.S. dollars using period-end exchange rates while income and expenses are translated using the average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income within shareholders’ equity in the accompanying Consolidated Balance Sheets. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents. The Company considers highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and to date have not experienced credit losses in these instruments. Cash of foreign subsidiaries is on deposit at banks in China, Vietnam, Singapore, Japan, Switzerland, the Netherlands, Germany, the Philippines, Belgium, Italy, Hong Kong, Australia and the United Kingdom (“U.K.”). | |
Accounts Receivable | ' |
Accounts Receivable. The Company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues, net of this allowance, is reasonably assured. | |
The Company factored a portion of the accounts receivable of its Japan subsidiary during each of the years ended June 30, 2014 and 2013. Factoring is done with large banks in Japan. During the years ended June 30, 2014 and 2013, $12.7 million and $8.5 million, respectively, of accounts receivable had been factored. As of June 30, 2014 and 2013, the amount included in other accrued liabilities representing the Company’s obligation to the bank for these receivables factored with recourse was immaterial. | |
Inventories | ' |
Inventories. Inventories are valued at the lower of cost or market (“LCM”), with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. Market cannot exceed the net realizable value (i.e., estimated selling price in the ordinary course of business less reasonably predicted costs of completion and disposal) and market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin. In evaluating LCM, management also considers, if applicable, other factors as well, including known trends, market conditions, currency exchange rates and other such issues. The Company records an inventory reserve as a charge against earnings for all products on hand more than twelve to eighteen months depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional reserve is recorded for product on hand that is in excess of product sold to customers over the same periods noted above. Inventories are presented net of reserves. The reserves totaled $12.0 million and $7.1 million at June 30, 2014 and 2013, respectively. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair market value upon acquisition. Major improvements are capitalized, while maintenance and repairs are generally expensed as incurred. The Company reviews its property, plant and equipment and other long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Depreciation for financial reporting purposes is computed primarily by the straight-line method over the estimated useful lives for building, building improvements and land improvements of 10 to 20 years and 3 to 12 years for machinery and equipment. | |
Business Combinations | ' |
Business Combinations. The Company accounts for business acquisitions by establishing the acquisition-date fair value as the measurement for all assets acquired and liabilities assumed. Certain provisions of accounting principles generally accepted in the United States (“U.S. GAAP”) prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. | |
Goodwill | ' |
Goodwill. The excess purchase price over the fair market value allocated to identifiable tangible and intangible net assets of businesses acquired is reported as goodwill in the accompanying Consolidated Balance Sheets. The Company tests goodwill for impairment at least annually as of April 1, or when events or changes in circumstances indicate that goodwill might be impaired. The evaluation of impairment involves comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company uses a discounted cash flow (“DCF”) model and a market analysis to determine the current fair value of the 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. | |
The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. | |
Intangibles | ' |
Intangibles. Intangible assets are initially recorded at their cost or fair market value upon acquisition. Finite-lived intangible assets are amortized for financial reporting purposes using the straight-line method over the estimated useful lives of the assets ranging from 7 to 18 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1, or when events or changes in circumstances indicate that indefinite-lived intangible assets might be impaired. | |
Equity Method Investments | ' |
Equity Method Investments. 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 June 30, 2014 and June 30, 2013 was $11.6 million and $11.2 million, respectively. During the years ended June 30, 2014, 2013 and 2012, the Company’s pro-rata share of earnings from this investment was $0.7 million, $1.0 million and $1.3 million, respectively, and was recorded in other expense (income), net in the Consolidated Statements of Earnings. During the years ended June 30, 2014 and 2013, the Company recorded dividends from this equity investment of $0.3 million and $0.5 million for the years ended June 30, 2014 and 2013, respectively. | |
Commitments and Contingencies | ' |
Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Such accruals are adjusted as further information develops or circumstances change. The Company had no loss contingency liabilities at June 30, 2014 related to commitments and contingencies. | |
Accrued Bonus and Profit Sharing Contribution | ' |
Accrued Bonus and Profit Sharing Contribution. The Company records bonus and profit sharing estimates as a charge against earnings. These estimates are adjusted to actual based on final results of operations achieved during the fiscal year. Certain partial bonus amounts are paid on an interim basis, and the remainder is paid after the fiscal year end after the final determination of the applicable percentage or amounts. Other bonuses are paid annually. | |
Warranty Reserve | ' |
Warranty Reserve. The Company records a warranty reserve as a charge against earnings based on a percentage of revenues utilizing actual returns over a period that approximates historical warranty experience. | |
Income Taxes | ' |
Income Taxes. Deferred income tax assets and liabilities are determined based on the differences between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount more likely than not to be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in facts and circumstances. For example, adjustments could result from significant amendments to existing tax law and the issuance of regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes that its estimates for uncertain tax positions are appropriate and sufficient to pay assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties related to unrecognized tax benefits in income tax expense. | |
Revenue Recognition | ' |
Revenue Recognition. The Company recognizes revenues for product shipments when persuasive evidence of a sales arrangement exists, the product has been shipped or delivered, the sale price is fixed or determinable and collectability is reasonably assured. Title and risk of loss passes from the Company to its customer at the time of shipment in most cases with the exception of certain customers. For these customers, title does not pass and revenue is not recognized until the customer has received the product at its physical location. | |
We establish an allowance for doubtful accounts and warranty reserves based on historical experience and believe the collection of revenues, net of these reserves, is reasonably assured. Our allowance for doubtful accounts and warranty reserve balances at June 30, 2014 were approximately $1.9 million and $2.9 million, respectively. Our reserve estimates have historically been proven to be materially correct based upon actual charges incurred. | |
The Company’s revenue recognition policy is consistently applied across the Company’s segments, product lines and geographical locations. Further, we do not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges. Our distributors and agents are not granted price protection. Our distributors and agents, which comprise less than 10% of consolidated revenues, have no additional product return rights beyond the right to return defective products covered by our warranty policy. Revenues generated from transactions other than product shipments are contract related and have historically accounted for less than 5% of consolidated revenues. We believe our revenue recognition practices have adequately considered the requirements under U.S. GAAP. | |
Shipping and Handling Costs | ' |
Shipping and Handling Costs. Shipping and handling costs billed to customers are included in revenues. Shipping and handling costs incurred by the Company are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. Total shipping and handling revenue and costs included in revenues and in selling, general and administrative expenses were immaterial for the fiscal years ended June 30, 2014, 2013 and 2012. | |
Research and Development | ' |
Research and Development. Internal research and development costs and costs not related to customer and government funded research and development contracts are expensed as incurred. | |
Share-Based Compensation | ' |
Share-Based Compensation. The Company follows U.S. GAAP in accounting for share-based compensation arrangements, which requires the recognition of the fair value of stock compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. | |
Workers' Compensation | ' |
Workers’ Compensation. The Company is self-insured for certain losses related to workers’ compensation for the majority of its U.S. employees. When estimating the self-insurance liability, the Company considers a number of factors, including historical claims experience, demographic and severity factors and valuations provided by independent third-party consultants. Periodically, management reviews its assumptions and valuations to determine the adequacy of the self-insurance liability. | |
Accumulated Other Comprehensive Income | ' |
Accumulated Other Comprehensive Income. Accumulated other comprehensive income is a measure of all changes in shareholders’ equity that result from transactions and other economic events in the period other than transactions with owners. Accumulated other comprehensive income is a component of shareholders’ equity and consists of accumulated foreign currency translation adjustments of $18.0 million and $15.6 million, respectively, as of June 30, 2014 and 2013 and a pension adjustment of $1.4 million as of June 30, 2014. | |
Fair Value Measurements | ' |
Fair Value Measurements. The Company applies fair value accounting for all financial assets and liabilities that are required to be recognized or disclosed at fair value in the financial statements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact, and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | |
Estimates | ' |
Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Leases | ' |
Leases. The Company classifies leases as operating in accordance with the provisions of lease accounting. Rent expense under noncancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. The current portion of unamortized deferred lease costs is included in other accrued liabilities and the long-term portion is included in other liabilities in the Consolidated Balance Sheets. | |
Recently Issued Financial Accounting Standards | ' |
Recently Issued Financial Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) which supersedes virtually all existing revenue recognition guidance under U.S. GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016 and prohibits early adoption. The update allows for the use of either the retrospective or modified retrospective approach of adoption. Management is currently evaluating the available transition methods and the potential impact of adoption on the Company's Consolidated Financial Statements. | |
In April 2014, the FASB issued an ASU that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The new standard will be effective for annual periods beginning on or after December 15, 2014 with early adoption permitted and will be effective for the Company beginning in the first quarter of fiscal year 2016. The adoption of this standard is not expected to have a significant impact on the Company’s Consolidated Financial Statements. | |
In July 2013, the FASB issued an ASU that changes how certain unrecognized tax benefits are to be presented on the consolidated balance sheet. This ASU clarified existing guidance to require that an unrecognized tax benefit or a portion thereof be presented in the consolidated balance sheet as a reduction to a deferred tax asset for a net operating loss (“NOL”) carryforward, similar tax loss, or a tax credit carryforward except when an NOL carryforward, similar tax loss, or tax credit carryforward is not available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. In such a case, the unrecognized tax benefit would be presented in the consolidated balance sheet as a liability. 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 March 2013, the FASB issued an ASU 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 ASU 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_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Pro-forma Consolidated Results of Operations | ' | |||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
Net revenues | $ | 734,912 | $ | 732,474 | ||||
Net earnings attributable to II-VI Incorporated | $ | 47,054 | $ | 44,693 | ||||
Basic earnings per share | $ | 0.76 | $ | 0.72 | ||||
Diluted earnings per share | $ | 0.75 | $ | 0.7 | ||||
Oclaro's Fiber Amplifier and Micro Optics Business | ' | |||||||
Summary of Purchase Price | ' | |||||||
Net cash paid at acquisition | $ | 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 allocation of the purchase price of the assets acquired at the date of acquisition ($000): | ||||||||
Assets | ||||||||
Inventories | $ | 11,314 | ||||||
Property, plant & equipment | 9,700 | |||||||
Intangible assets | 32,000 | |||||||
Goodwill | 35,586 | |||||||
Total assets acquired | $ | 88,600 | ||||||
Oclaro Incorporated | ' | |||||||
Summary of Purchase Price | ' | |||||||
Net cash paid at acquisition | $ | 90,601 | ||||||
Cash paid for working capital adjustment | 2,475 | |||||||
Holdback amount recorded in Other liabilities | 6,000 | |||||||
Purchase price | $ | 99,076 | ||||||
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed at Date of Acquisition | ' | |||||||
The following table presents the allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): | ||||||||
Assets | ||||||||
Inventories | $ | 26,071 | ||||||
Prepaid and other assets | 1,035 | |||||||
Deferred income taxes | 1,771 | |||||||
Property, plant & equipment | 30,184 | |||||||
Intangible assets | 28,900 | |||||||
Goodwill | 37,507 | |||||||
Total assets acquired | $ | 125,468 | ||||||
Liabilities | ||||||||
Accounts payable | $ | 2,214 | ||||||
Deferred income taxes | 8,647 | |||||||
Accrued income taxes | 2,714 | |||||||
Other accrued liabilities | 12,817 | |||||||
Total liabilities assumed | $ | 26,392 | ||||||
Net assets acquired | $ | 99,076 | ||||||
Discontinued_Operation_Tables
Discontinued Operation (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Summary of Revenues and Earnings (Losses) of Discontinued Operation | ' | ||||||||||||
The revenues and earnings (losses) of the tellurium product line have been reflected as a discontinued operation for the periods presented as follows ($000): | |||||||||||||
June 30, | 2014 | 2013 | 2012 | ||||||||||
$0 | |||||||||||||
Revenues | $ | 1,849 | $ | 7,321 | $ | 18,227 | |||||||
Earnings (loss) from discontinued operation before income taxes | 133 | (6,789 | ) | (9,583 | ) | ||||||||
Income tax benefit | - | - | 140 | ||||||||||
Earnings (loss) from discontinued operation net income taxes | $ | 133 | $ | (6,789 | ) | $ | (9,443 | ) | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Components of Inventories, Net of Reserves | ' | ||||||||
The components of inventories, net of reserves, were as follows: | |||||||||
June 30, | 2014 | 2013 | |||||||
$0 | |||||||||
Raw materials | $ | 71,949 | $ | 59,290 | |||||
Work in process | 44,739 | 43,895 | |||||||
Finished goods | 49,185 | 38,674 | |||||||
$ | 165,873 | $ | 141,859 | ||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment consists of the following: | |||||||||
June 30, | 2014 | 2013 | |||||||
$0 | |||||||||
Land and improvements | $ | 2,381 | $ | 2,236 | |||||
Buildings and improvements | 96,551 | 87,189 | |||||||
Machinery and equipment | 335,408 | 276,802 | |||||||
Construction in progress | 16,990 | 10,831 | |||||||
451,330 | 377,058 | ||||||||
Less accumulated depreciation | (242,391 | ) | (206,386 | ) | |||||
$ | 208,939 | $ | 170,672 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||
Year Ended June 30, 2014 | ||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Total | |||||||||||||||||||
Balance-July 1, 2013 | $ | 9,677 | $ | 60,269 | $ | 30,712 | $ | 22,694 | $ | - | $ | 123,352 | ||||||||||||
Goodwill acquired | - | - | - | - | 73,093 | 73,093 | ||||||||||||||||||
Goodwill adjustment | - | - | - | (516 | ) | - | (516 | ) | ||||||||||||||||
Foreign currency translation | 77 | 139 | - | - | - | 216 | ||||||||||||||||||
Balance-June 30, 2014 | $ | 9,754 | $ | 60,408 | $ | 30,712 | $ | 22,178 | $ | 73,093 | $ | 196,145 | ||||||||||||
During the year ended June 30, 2014, 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. | ||||||||||||||||||||||||
Year Ended June 30, 2013 | ||||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||
Optics | Optics | Materials | Group | Total | ||||||||||||||||||||
Balance-July 1, 2012 | $ | 9,612 | $ | 48,496 | $ | 12,326 | $ | 10,314 | $ | 80,748 | ||||||||||||||
Goodwill acquired | - | 10,980 | 18,386 | 12,381 | 41,746 | |||||||||||||||||||
Foreign currency translation | 65 | 793 | - | - | 858 | |||||||||||||||||||
Balance-June 30, 2013 | $ | 9,677 | $ | 60,269 | $ | 30,712 | $ | 22,694 | $ | 123,352 | ||||||||||||||
Gross Carrying Amount and Accumulated Amortization | ' | |||||||||||||||||||||||
The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Year Ended June 30, 2014 | Year Ended June 30, 2013 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | |||||||||||||||||||
Technology and patents | $ | 50,505 | $ | (14,474 | ) | $ | 36,031 | $ | 39,659 | $ | (10,455 | ) | $ | 29,204 | ||||||||||
Trademarks | 17,870 | (1,037 | ) | 16,833 | 17,855 | (963 | ) | 16,892 | ||||||||||||||||
Customer lists | 102,839 | (19,448 | ) | 83,391 | 52,614 | (12,189 | ) | 40,425 | ||||||||||||||||
Other | 1,586 | (1,437 | ) | 149 | 1,580 | (1,400 | ) | 180 | ||||||||||||||||
Total | $ | 172,800 | $ | (36,396 | ) | $ | 136,404 | $ | 111,708 | $ | (25,007 | ) | $ | 86,701 | ||||||||||
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years | ' | |||||||||||||||||||||||
The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows: | ||||||||||||||||||||||||
Year Ending June 30, | ||||||||||||||||||||||||
2015 | $ | 11,716 | ||||||||||||||||||||||
2016 | 11,619 | |||||||||||||||||||||||
2017 | 11,609 | |||||||||||||||||||||||
2018 | 11,140 | |||||||||||||||||||||||
2019 | 10,715 | |||||||||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Components of Debt | ' | ||||||||
The components of debt were as follows ($000): | |||||||||
June 30, | 2014 | 2013 | |||||||
Line of credit, interest at LIBOR, as defined, plus 1.75% and | $ | 154,000 | $ | 111,000 | |||||
1.25%, respectively | |||||||||
Term loan, interest at LIBOR, as defined, plus 1.25% | $ | 85,000 | - | ||||||
Yen denominated line of credit, interest at LIBOR, as defined, | 2,960 | 3,036 | |||||||
plus 0.625% | |||||||||
Total debt | 241,960 | 114,036 | |||||||
Current portion of long-term debt | (20,000 | ) | - | ||||||
Long-term debt, less current portion | $ | 221,960 | $ | 114,036 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | ' | ||||||||||||||||||||||||
The components of income (loss) from continuing operations before income taxes were as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
U.S. income (loss) | $ | (2,863 | ) | $ | 19,253 | $ | 16,025 | ||||||||||||||||||
Non-U.S. income | 48,504 | 58,233 | 72,453 | ||||||||||||||||||||||
Total Earnings Before Tax | $ | 45,641 | $ | 77,486 | $ | 88,478 | |||||||||||||||||||
Components of Income Tax Expense (Benefit) | ' | ||||||||||||||||||||||||
The components of income tax expense (benefit) from continuing operations were as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | (1,067 | ) | $ | 2,759 | $ | 283 | |||||||||||||||||||
State | 152 | 68 | 227 | ||||||||||||||||||||||
Foreign | 12,675 | 13,977 | 16,673 | ||||||||||||||||||||||
Total Current | $ | 11,760 | $ | 16,804 | $ | 17,183 | |||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (16 | ) | $ | 1,721 | $ | 3,409 | |||||||||||||||||||
State | 148 | 113 | (356 | ) | |||||||||||||||||||||
Foreign | (4,567 | ) | 128 | (2,476 | ) | ||||||||||||||||||||
Total Deferred | $ | (4,435 | ) | $ | 1,962 | $ | 577 | ||||||||||||||||||
Total Income Tax Expense | $ | 7,325 | $ | 18,766 | $ | 17,760 | |||||||||||||||||||
Schedule of Principal Items Comprising Deferred Income Taxes | ' | ||||||||||||||||||||||||
Principal items comprising deferred income taxes were as follows: | |||||||||||||||||||||||||
June 30, | 2014 | 2013 | |||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Deferred income tax assets | |||||||||||||||||||||||||
Inventory capitalization | $ | 5,402 | $ | 6,333 | |||||||||||||||||||||
Non-deductible accruals | 1,926 | 1,930 | |||||||||||||||||||||||
Accrued employee benefits | 9,226 | 6,790 | |||||||||||||||||||||||
Net-operating loss and credit carryforwards | 21,976 | 22,849 | |||||||||||||||||||||||
Share-based compensation expense | 16,005 | 15,021 | |||||||||||||||||||||||
Other | 577 | 205 | |||||||||||||||||||||||
Valuation allowances | (2,212 | ) | (2,885 | ) | |||||||||||||||||||||
Total deferred income tax assets | $ | 52,900 | $ | 50,243 | |||||||||||||||||||||
Deferred income tax liabilities | |||||||||||||||||||||||||
Tax over book accumulated depreciation | (17,625 | ) | $ | (16,988 | ) | ||||||||||||||||||||
Intangible assets | (25,505 | ) | (21,561 | ) | |||||||||||||||||||||
Other | (2,786 | ) | (2,409 | ) | |||||||||||||||||||||
Total deferred income tax liabilities | $ | (45,916 | ) | $ | (40,958 | ) | |||||||||||||||||||
Net deferred income taxes | $ | 6,984 | $ | 9,285 | |||||||||||||||||||||
Schedule of Reconciliation of Income Tax Expense at Statutory Federal Rate to Reported Income Tax Expense | ' | ||||||||||||||||||||||||
The reconciliation of income tax expense at the statutory federal rate to the reported income tax expense is as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | % | 2013 | % | 2012 | % | |||||||||||||||||||
$0 | |||||||||||||||||||||||||
Taxes at statutory rate | $ | 15,974 | 35 | $ | 27,120 | 35 | $ | 30,967 | 35 | ||||||||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||||||||||||||
State income taxes-net of federal benefit | 254 | 1 | 168 | - | (187 | ) | - | ||||||||||||||||||
Taxes on non U.S. earnings | (6,672 | ) | (15 | ) | (6,991 | ) | (9 | ) | (9,841 | ) | (11 | ) | |||||||||||||
Settlement of unrecognized tax benefits | - | - | - | - | (842 | ) | (1 | ) | |||||||||||||||||
Research and manufacturing incentive deductions | (2,190 | ) | (5 | ) | (1,458 | ) | (2 | ) | (2,079 | ) | (3 | ) | |||||||||||||
Other | (41 | ) | - | (73 | ) | - | (258 | ) | - | ||||||||||||||||
$ | 7,325 | 16 | $ | 18,766 | 24 | $ | 17,760 | 20 | |||||||||||||||||
Schedule of Sources of Differences Resulting in Deferred Income Tax Expense (Benefit) | ' | ||||||||||||||||||||||||
The sources of differences resulting in deferred income tax expense (benefit) from continuing operations and the related tax effect of each were as follows: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Depreciation and amortization | $ | (3,581 | ) | $ | (2,825 | ) | $ | 38 | |||||||||||||||||
Inventory capitalization | 646 | 84 | (1,947 | ) | |||||||||||||||||||||
Net operating loss and credit carryforwards net of valuation | 533 | 4,786 | 1,859 | ||||||||||||||||||||||
allowances | |||||||||||||||||||||||||
Share-based compensation expense | (984 | ) | (3,487 | ) | (2,442 | ) | |||||||||||||||||||
Other | (1,049 | ) | 3,404 | 3,069 | |||||||||||||||||||||
$ | (4,435 | ) | $ | 1,962 | $ | 577 | |||||||||||||||||||
Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards | ' | ||||||||||||||||||||||||
The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2014: | |||||||||||||||||||||||||
Type | Amount | Expiration Date | |||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Tax credit carryforwards: | |||||||||||||||||||||||||
Federal research and development credits | $ | 4,117 | June 2019-June 2034 | ||||||||||||||||||||||
State tax credits | 2,827 | June 2014-June 2029 | |||||||||||||||||||||||
Operating loss carryforwards: | |||||||||||||||||||||||||
Loss carryforwards - federal | $ | 36,124 | June 2022-June 2029 | ||||||||||||||||||||||
Loss carryforwards - state | 25,116 | June 2014-June 2034 | |||||||||||||||||||||||
Loss carryforwards - foreign | 9,427 | June 2016-June 2022 | |||||||||||||||||||||||
Schedule of Changes in Liability for Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
$0 | |||||||||||||||||||||||||
Balance at Beginning of Year | $ | 3,181 | $ | 2,850 | $ | 4,744 | |||||||||||||||||||
Increases in current year tax positions | 298 | 338 | 738 | ||||||||||||||||||||||
Increases in prior year tax positions | 2 | - | - | ||||||||||||||||||||||
Decreases in prior year tax positions | - | (7 | ) | (41 | ) | ||||||||||||||||||||
Settlements | - | - | (1,788 | ) | |||||||||||||||||||||
Expiration of statute of limitations | (706 | ) | - | (803 | ) | ||||||||||||||||||||
Balance at End of Year | $ | 2,775 | $ | 3,181 | $ | 2,850 | |||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Computation of Earnings Per Share | ' | ||||||||||||
The following table sets forth the computation of earnings per share for the periods indicated. Weighted-average shares issuable upon the exercise of stock options that were not included in the calculation were 507,000, 470,000 and 220,000 for the fiscal years ended June 30, 2014, 2013 and 2012, respectively, because they were anti-dilutive. | |||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||
($000 except per share) | |||||||||||||
Earnings from continuing operations attributable to | $ | 38,316 | $ | 57,602 | $ | 69,749 | |||||||
II-VI Incorporated | |||||||||||||
Earnings (loss) from discontinued operation | $ | 133 | (6,789 | ) | (9,443 | ) | |||||||
Net Earnings from continuing operations attributable to | $ | 38,449 | $ | 50,813 | $ | 60,306 | |||||||
II-VI Incorporated | |||||||||||||
Divided by: | |||||||||||||
Weighted average shares | 62,248 | 62,411 | 62,823 | ||||||||||
Basic earnings (loss) attributable to II-VI Incorporated | |||||||||||||
per common share: | |||||||||||||
Continuing operations | $ | 0.62 | $ | 0.92 | $ | 1.1 | |||||||
Discontinued operation | $ | - | $ | (0.11 | ) | $ | (0.15 | ) | |||||
Consolidated | $ | 0.62 | $ | 0.81 | $ | 0.96 | |||||||
Earnings from continuing operations attributable to | $ | 38,316 | $ | 57,602 | $ | 69,749 | |||||||
II-VI Incorporated | |||||||||||||
Earnings (loss) from discontinued operation | $ | 133 | (6,789 | ) | (9,443 | ) | |||||||
Net Earnings from continuing operations attributable to | $ | 38,449 | $ | 50,813 | $ | 60,306 | |||||||
II-VI Incorporated | |||||||||||||
Divided by: | |||||||||||||
Weighted average shares | 62,248 | 62,411 | 62,823 | ||||||||||
Diluted effect of common stock equivalents | 1,438 | 1,473 | 1,562 | ||||||||||
Diluted weighted average common shares | 63,686 | 63,884 | 64,385 | ||||||||||
Diluted earnings (loss) attributable to II-VI Incorporated | |||||||||||||
per common share: | |||||||||||||
Continuing operations | $ | 0.6 | $ | 0.9 | $ | 1.08 | |||||||
Discontinued operation | $ | - | $ | (0.11 | ) | $ | (0.15 | ) | |||||
Consolidated | $ | 0.6 | $ | 0.8 | $ | 0.94 | |||||||
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Operating Lease Future Rental Commitments | ' | ||||
Future rental commitments applicable to the operating leases at June 30, 2014 are as follows: | |||||
Year Ending June 30, | |||||
$0 | |||||
2015 | $ | 13,298 | |||
2016 | 10,056 | ||||
2017 | 7,191 | ||||
2018 | 5,158 | ||||
2019 | 1,990 | ||||
Thereafter | 18,795 | ||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Share-Based Compensation Expense by Award Type | ' | ||||||||||||||||||||||||
Share-based compensation expense for the fiscal years ended June 30, 2014, 2013 and 2012 is as follows ($000): | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | 30-Jun-12 | |||||||||||||||||||||||
Stock Options and Cash-Based Stock Appreciation Rights | 5,818 | $ | 5,046 | $ | 6,025 | ||||||||||||||||||||
Restricted Share Awards and Cash-Based Restricted Share | 4,868 | 4,411 | 2,945 | ||||||||||||||||||||||
Unit Awards | |||||||||||||||||||||||||
Performance Share Awards and Cash-Based Performance Share | 2,311 | 3,200 | 2,614 | ||||||||||||||||||||||
Unit Awards | |||||||||||||||||||||||||
$ | 12,997 | $ | 12,657 | $ | 11,584 | ||||||||||||||||||||
Schedule of Fair Value Assumptions under Stock Option Plan | ' | ||||||||||||||||||||||||
The Company utilized the Black-Scholes valuation model for estimating the fair value of stock option expense. During the fiscal years ended June 30, 2014, 2013 and 2012, the weighted-average fair value of options granted under the stock option plan was $8.21, $8.37 and $9.32, respectively, per option using the following assumptions: | |||||||||||||||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | 1.71 | % | 0.98 | % | 1.05 | % | |||||||||||||||||||
Expected volatility | 47 | % | 49 | % | 59 | % | |||||||||||||||||||
Expected life of options | 5.56 years | 5.66 years | 5.47 years | ||||||||||||||||||||||
Dividend yield | None | None | None | ||||||||||||||||||||||
Stock Option and Cash-Based Stock Appreciation Rights Activity | ' | ||||||||||||||||||||||||
Stock option and cash-based stock appreciation rights activity during the fiscal year ended June 30, 2014 was as follows: | |||||||||||||||||||||||||
Stock Options | Cash-Based Stock Appreciation Rights | ||||||||||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||||||||||
Shares | Exercise Price | Rights | Exercise Price | ||||||||||||||||||||||
Outstanding - July 1, 2013 | 4,670,011 | $ | 15.59 | 60,820 | $ | 18.78 | |||||||||||||||||||
Granted | 612,180 | $ | 18.38 | 58,470 | $ | 17.88 | |||||||||||||||||||
Exercised | (438,449 | ) | $ | 10.22 | (460 | ) | $ | 18.93 | |||||||||||||||||
Forfeited and Expired | (139,188 | ) | $ | 18.51 | (10,112 | ) | $ | 18.94 | |||||||||||||||||
Outstanding - June 30, 2014 | 4,704,554 | $ | 16.37 | 108,718 | $ | 18.28 | |||||||||||||||||||
Exercisable - June 30, 2014 | 3,025,156 | $ | 15.48 | 10,574 | $ | 18.79 | |||||||||||||||||||
Share-Based Compensation Outstanding and Exercisable Options | ' | ||||||||||||||||||||||||
Outstanding and exercisable stock options at June 30, 2014 were as follows: | |||||||||||||||||||||||||
Stock Options and Cash-Based Stock | Stock Options and Cash-Based Stock | ||||||||||||||||||||||||
Appreciation Rights Outstanding | Appreciation Rights Exercisable | ||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | ||||||||||||||||||||||
Number of | Average Remaining | Average | Number of | Average Remaining | Average | ||||||||||||||||||||
Range of | Shares or | Contractual Term | Exercise | Shares or | Contractual Term | Exercise | |||||||||||||||||||
Exercise Prices | Rights | (Years) | Price | Rights | (Years) | Price | |||||||||||||||||||
$8.44-$12.80 | 1,331,888 | 3.05 | $ | 10.7 | 1,233,668 | 2.88 | 10.59 | ||||||||||||||||||
$13.17-$20.26 | 2,831,846 | 7 | $ | 17.45 | 1,196,748 | 5.44 | 16.47 | ||||||||||||||||||
$20.47-$27.18 | 649,538 | 4.37 | $ | 23.52 | 605,314 | 4.18 | 23.49 | ||||||||||||||||||
4,813,272 | 5.52 | $ | 16.42 | 3,035,730 | 4.14 | 15.49 | |||||||||||||||||||
Restricted Share and Cash-Based Restricted Share Unit Activity | ' | ||||||||||||||||||||||||
Restricted share and cash-based restricted share unit activity during the fiscal year ended June 30, 2014, was as follows: | |||||||||||||||||||||||||
Restricted Share Awards | Cash-Based Restricted Share Units | ||||||||||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||||||||||
Shares | Grant Date Fair Value | Units | Grant Date Fair Value | ||||||||||||||||||||||
Nonvested - June 30, 2013 | 798,624 | $ | 18.18 | 30,270 | $ | 18.78 | |||||||||||||||||||
Granted | 223,760 | $ | 17.26 | 39,880 | $ | 17.05 | |||||||||||||||||||
Vested | (195,707 | ) | $ | 19.19 | - | $ | - | ||||||||||||||||||
Forfeited | (42,642 | ) | $ | 18.29 | (5,840 | ) | $ | 18.63 | |||||||||||||||||
Nonvested - June 30, 2014 | 784,035 | $ | 17.66 | 64,310 | $ | 17.72 | |||||||||||||||||||
Performance Share and Cash-Based Performance Share Unit Award Activity | ' | ||||||||||||||||||||||||
Performance share and cash-based performance share unit award activity relating to the plan during the year ended June 30, 2014, was as follows: | |||||||||||||||||||||||||
Performance Share Awards | Cash-Based Performance Share Units | ||||||||||||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||||||||||
Shares | Grant Date Fair Value | Units | Grant Date Fair Value | ||||||||||||||||||||||
Nonvested - June 30, 2013 | 359,754 | $ | 17.85 | 107,096 | $ | 18.93 | |||||||||||||||||||
Granted | 105,900 | $ | 19.37 | 2,150 | $ | 19.37 | |||||||||||||||||||
Vested | (77,656 | ) | $ | 17.53 | - | $ | - | ||||||||||||||||||
Forfeited | (55,818 | ) | $ | 17.56 | (10,102 | ) | $ | 18.93 | |||||||||||||||||
Nonvested - June 30, 2014 | 332,180 | $ | 18.46 | 99,144 | $ | 18.94 | |||||||||||||||||||
Segment_and_Geographic_Reporti1
Segment and Geographic Reporting (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Financial Information of Company's Operation by Segment | ' | |||||||||||||||||||||||||||
The following tables summarize selected financial information of the Company’s operations by segment: | ||||||||||||||||||||||||||||
Near- | Military | Advanced | Active | |||||||||||||||||||||||||
Infrared | Infrared | & | Products | Optical | ||||||||||||||||||||||||
Optics | Optics | Materials | Group | Products | Eliminations | Total | ||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Revenues | $ | 209,658 | $ | 144,677 | $ | 98,324 | $ | 115,394 | $ | 115,208 | $ | - | $ | 683,261 | ||||||||||||||
Inter-segment revenues | 1,608 | 2,406 | 6,514 | 6,388 | 563 | (17,479 | ) | - | ||||||||||||||||||||
Segment earnings (loss) | 40,736 | 9,814 | 12,851 | 9,419 | (26,334 | ) | - | 46,486 | ||||||||||||||||||||
Interest expense | - | - | - | - | - | - | (4,479 | ) | ||||||||||||||||||||
Other income, net | - | - | - | - | - | - | 3,634 | |||||||||||||||||||||
Income taxes | - | - | - | - | - | - | (7,325 | ) | ||||||||||||||||||||
Earnings from discontinued operation | - | - | - | - | - | - | 133 | |||||||||||||||||||||
Net earnings | - | - | - | - | - | - | 38,449 | |||||||||||||||||||||
Depreciation and amortization | 9,174 | 16,764 | 8,111 | 9,947 | 9,102 | - | 53,098 | |||||||||||||||||||||
Segment assets | 231,874 | 295,953 | 117,730 | 175,986 | 250,383 | - | 1,071,926 | |||||||||||||||||||||
Expenditures for property, plant and equipment | 9,719 | 8,171 | 5,539 | 3,525 | 2,266 | - | 29,220 | |||||||||||||||||||||
Equity investment | - | - | - | 11,589 | - | - | 11,589 | |||||||||||||||||||||
Goodwill | 9,754 | 60,408 | 30,712 | 22,178 | 73,093 | - | 196,145 | |||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Revenues | $ | 203,319 | $ | 154,852 | $ | 97,116 | $ | 95,788 | $ | - | $ | 551,075 | ||||||||||||||||
Inter-segment revenues | 2,618 | 896 | 4,853 | 5,311 | (13,678 | ) | - | |||||||||||||||||||||
Segment earnings | 49,457 | 19,628 | 656 | 1,750 | 71,491 | |||||||||||||||||||||||
Interest expense | - | - | - | - | - | (1,160 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 7,155 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (18,766 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (6,789 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 51,931 | ||||||||||||||||||||||
Depreciation and amortization | 8,423 | 17,286 | 7,023 | 8,060 | - | 40,792 | ||||||||||||||||||||||
Segment assets | 238,700 | 307,431 | 139,923 | 177,748 | - | 863,802 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 5,812 | 9,170 | 3,909 | 6,314 | - | 25,205 | ||||||||||||||||||||||
Equity investment | - | - | - | 11,203 | - | 11,203 | ||||||||||||||||||||||
Goodwill | 9,677 | 60,269 | 30,712 | 22,694 | - | 123,352 | ||||||||||||||||||||||
Near- | Military | Advanced | ||||||||||||||||||||||||||
Infrared | Infrared | & | Products | |||||||||||||||||||||||||
Optics | Optics | Materials | Group | Eliminations | Total | |||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||
Revenues | $ | 201,611 | $ | 140,001 | $ | 100,235 | $ | 74,556 | $ | - | $ | 516,403 | ||||||||||||||||
Inter-segment revenues | 3,174 | 2,135 | 7,589 | 4,295 | (17,193 | ) | - | |||||||||||||||||||||
Segment earnings | 51,095 | 14,060 | 7,925 | 8,442 | 81,522 | |||||||||||||||||||||||
Interest expense | - | - | - | - | - | (212 | ) | |||||||||||||||||||||
Other income, net | - | - | - | - | - | 7,168 | ||||||||||||||||||||||
Income taxes | - | - | - | - | - | (17,760 | ) | |||||||||||||||||||||
Loss from discontinued operation | - | - | - | - | - | (9,443 | ) | |||||||||||||||||||||
Net earnings | - | - | - | - | - | 61,275 | ||||||||||||||||||||||
Depreciation and amortization | 8,480 | 15,803 | 5,957 | 4,283 | - | 34,523 | ||||||||||||||||||||||
Expenditures for property, plant and equipment | 8,072 | 12,249 | 11,983 | 10,493 | - | 42,797 | ||||||||||||||||||||||
Geographic Information for Revenues and Long-Lived Assets | ' | |||||||||||||||||||||||||||
Geographic information for revenues from the country of origin, and long-lived assets from the country of origin, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, is as follows: | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Year-Ended June 30, | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
United States | $ | 263,493 | $ | 251,735 | $ | 204,706 | ||||||||||||||||||||||
Non-United States | ||||||||||||||||||||||||||||
China | 114,247 | 123,306 | 123,348 | |||||||||||||||||||||||||
Switzerland | 70,260 | 10,268 | 11,714 | |||||||||||||||||||||||||
Germany | 69,983 | 59,628 | 51,962 | |||||||||||||||||||||||||
Hong Kong | 54,602 | - | - | |||||||||||||||||||||||||
Japan | 38,110 | 29,462 | 35,915 | |||||||||||||||||||||||||
Vietnam | 23,141 | 29,425 | 31,500 | |||||||||||||||||||||||||
Philippines | 14,959 | 17,400 | 26,185 | |||||||||||||||||||||||||
Italy | 8,897 | 7,593 | 7,214 | |||||||||||||||||||||||||
Singapore | 8,273 | 6,280 | 7,238 | |||||||||||||||||||||||||
United Kingdom | 7,148 | 6,865 | 6,026 | |||||||||||||||||||||||||
Belgium | 6,578 | 5,821 | 6,010 | |||||||||||||||||||||||||
Australia | 3,570 | 3,292 | 4,585 | |||||||||||||||||||||||||
Total Non-United States | 419,768 | 299,340 | 311,697 | |||||||||||||||||||||||||
$ | 683,261 | $ | 551,075 | $ | 516,403 | |||||||||||||||||||||||
Long-Lived Assets | ||||||||||||||||||||||||||||
June 30, | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
$0 | ||||||||||||||||||||||||||||
United States | $ | 109,138 | $ | 110,337 | $ | 85,709 | ||||||||||||||||||||||
Non-United States | ||||||||||||||||||||||||||||
China | 45,667 | 43,139 | 45,412 | |||||||||||||||||||||||||
Switzerland | 22,524 | 5 | 10 | |||||||||||||||||||||||||
Germany | 16,129 | 2,107 | 1,581 | |||||||||||||||||||||||||
Vietnam | 9,107 | 10,081 | 10,278 | |||||||||||||||||||||||||
Philippines | 6,205 | 7,207 | 8,692 | |||||||||||||||||||||||||
Hong Kong | 5,111 | - | - | |||||||||||||||||||||||||
Other | 2,218 | 3,244 | 4,143 | |||||||||||||||||||||||||
Total Non-United States | 106,961 | 65,783 | 70,116 | |||||||||||||||||||||||||
$ | 216,099 | $ | 176,120 | $ | 155,825 | |||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 as of June 30, 2014 ($000): | ||||||||||||||||
Fair Value Measurements at June 30, 2014 Using: | ||||||||||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | Significant | |||||||||||||||
Markets | ||||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
June 30,2014 | Assets | Inputs | Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Liabilities: | ||||||||||||||||
Contingent Earnout Arrangement | $ | - | $ | - | $ | - | $ | - | ||||||||
Foreign currency forward contracts | $ | 54 | $ | - | $ | 54 | $ | - | ||||||||
Fair Value Measurements at June 30, 2013 Using: | ||||||||||||||||
Quoted | ||||||||||||||||
Prices in | ||||||||||||||||
Active | Significant | |||||||||||||||
Markets | ||||||||||||||||
for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
June 30,2013 | Assets | Inputs | Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Liabilities: | ||||||||||||||||
Contingent Earnout Arrangement | $ | 3,300 | $ | - | $ | - | $ | 3,300 | ||||||||
Foreign currency forward contracts | $ | 23 | $ | - | $ | 23 | $ | - | ||||||||
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: | ||||||||||||||||
Significant Other | ||||||||||||||||
Unobservable Inputs | ||||||||||||||||
(Level 3) | ||||||||||||||||
Balance at June 30, 2013 | $ | 3,300 | ||||||||||||||
Payment of earnout arrangement | (3,000 | ) | ||||||||||||||
Changes in fair value | (300 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | - | ||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Schedule of Changes in Projected Benefit Obligations and Plan Assets | ' | |||
The funded status of the Swiss Plan in the fiscal year ended June 30, 2014 was as follows: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Change in projected benefit obligation: | ||||
Projected benefit obligation, date of acquisition | $ | 38,748 | ||
Service cost | 3,375 | |||
Interest cost | 812 | |||
Plan amendments | (1,661 | ) | ||
Participant contributions | 1,110 | |||
Benefits (paid) received | (3,959 | ) | ||
Actuarial (gain) loss on obligation | (867 | ) | ||
Currency translation adjustment | 1,832 | |||
Projected benefit obligation, end of period | $ | 39,390 | ||
Change in plan assets: | ||||
Plan assets at fair value, date of acquisition | 30,167 | |||
Actual return on plan assets | 776 | |||
Employer contributions | 2,253 | |||
Participant contributions | 1,110 | |||
Benefits (paid) received | (3,959 | ) | ||
Currency translation adjustment | 1,617 | |||
Plan assets at fair value, end of period | $ | 31,965 | ||
Amounts recognized in consolidated balance sheets: | ||||
Other non-current assets: | ||||
Deferred tax asset | $ | 1,570 | ||
Other non-current liabilities: | ||||
Underfunded pension liability | $ | 7,425 | ||
Amounts recognized in accumulated other comprehensive | ||||
income, net of tax: | ||||
Pension adjustment | $ | 1,443 | ||
Accumulated benefit obligation, end of period | $ | 35,581 | ||
Schedule of Net Periodic Pension Costs | ' | |||
Net periodic pension cost associated with the Swiss Plan in the fiscal year ended June 30, 2014 included the following components: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Service cost | $ | 3,375 | ||
Interest cost | 812 | |||
Expected return on plan assets | (1,338 | ) | ||
Net amortization | - | |||
Net period pension cost | $ | 2,849 | ||
Schedule of Projected and Accumulated Benefit Obligations Rates | ' | |||
The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2014 using the following assumptions: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Discount rate | 2 | % | ||
Salary increase rate | 2 | % | ||
Expected return on plan assets | 3.5 | % | ||
Expected average remaining working life (in years) | 13.1 | |||
Schedule of Swiss Plan's Asset Allocation | ' | |||
The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2014, the Swiss Plan’s asset allocation was as follows: | ||||
Year Ended | ||||
30-Jun-14 | ||||
Fixed income investments | 22 | % | ||
Equity investments | 54 | % | ||
Real estate | 14 | % | ||
Cash | 8 | % | ||
Alternative investments | 2 | % | ||
100 | % | |||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Components of Other Accrued Liabilities | ' | ||||||||||||
The components of other accrued liabilities were as follows: | |||||||||||||
June 30, | 2014 | 2013 | |||||||||||
$0 | |||||||||||||
Acquisition holdbacks | $ | 10,000 | $ | - | |||||||||
Redeemable noncontrolling interest liability | - | 8,568 | |||||||||||
Earnout arrangement | - | 3,300 | |||||||||||
Warranty reserve | 2,859 | 1,661 | |||||||||||
Other accrued liabilities | 18,662 | 21,166 | |||||||||||
$ | 31,521 | $ | 34,695 | ||||||||||
Changes in the Carrying Amount of Redeemable Noncontrolling Interest | ' | ||||||||||||
Changes in the carrying amount of our redeemable noncontrolling interest were as follows: | |||||||||||||
Year Ended June 30, | 2014 | 2013 | 2012 | ||||||||||
$0 | |||||||||||||
Balance at Beginning of Year | $ | - | $ | 5,160 | $ | 1,828 | |||||||
Net earnings attributable to redeemable noncontrolling interest | - | 1,118 | 969 | ||||||||||
Other changes | - | (585 | ) | (267 | ) | ||||||||
Redemption value adjustment to redeemable noncontrolling interest | - | 2,875 | 2,630 | ||||||||||
Reclassification of redeemable noncontrolling interest to Other accrued liabilities | - | (8,568 | ) | - | |||||||||
Balance at End of Year | $ | - | $ | - | $ | 5,160 | |||||||
Change in Carrying Value of Company's Warranty Reserve | ' | ||||||||||||
The following table summarizes the change in the carrying value of the company’s warranty reserve included in Other Accrued Liabilities as of and for the year ended June 30, 2014. | |||||||||||||
Year Ended June 30, | 2014 | ||||||||||||
$0 | |||||||||||||
Balance-Beginning of Year | $ | 1,661 | |||||||||||
Settlements during the period | (1,843 | ) | |||||||||||
Additional warranty liability recorded | 1,868 | ||||||||||||
Warranty liability assumed through acquisitions | 1,173 | ||||||||||||
Balance-End of Year | $ | 2,859 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Schedule of Future Commitments | ' | ||||
Total future commitments are as follows: | |||||
Year Ending June 30, | |||||
$0 | |||||
2015 | $ | 15,906 | |||
2016 | 489 | ||||
2017 | 488 | ||||
2018 | - | ||||
2019 | $ | - | |||
Capital_Lease_Tables
Capital Lease (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease | ' | ||||
The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): | |||||
Fiscal Year Ending: | Amount | ||||
2015 | $ | 1,071 | |||
2016 | 1,071 | ||||
2017 | 1,071 | ||||
2018 | 1,071 | ||||
2019 | 1,071 | ||||
Thereafter | 12,228 | ||||
Total minimum lease payments | 17,583 | ||||
Less amount representing interest | 5,947 | ||||
Present value of capitalized payments | 11,636 | ||||
Less: current portion | 453 | ||||
Long-term portion | $ | 11,183 | |||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
Fiscal 2014 | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
Quarter Ended | 2013 | 2013 | 2014 | 2014 | |||||||||||||
$0 | |||||||||||||||||
2014 | |||||||||||||||||
Net revenues | $ | 150,020 | $ | 171,765 | $ | 173,555 | $ | 187,921 | |||||||||
Cost of goods sold | 93,709 | 118,371 | 118,865 | 125,600 | |||||||||||||
Internal research and development | 7,747 | 11,355 | 12,099 | 11,322 | |||||||||||||
Selling, general and administrative | 35,093 | 32,471 | 33,848 | 36,295 | |||||||||||||
Interest expense | 483 | 1,169 | 1,412 | 1,415 | |||||||||||||
Other expense (income) - net | 53 | (1,125 | ) | (1,694 | ) | (868 | ) | ||||||||||
Earnings from continuing operations before income taxes | 12,935 | 9,524 | 9,025 | 14,157 | |||||||||||||
Income taxes | 3,243 | 2,086 | 494 | 1,502 | |||||||||||||
Earnings from continuing operations | 9,692 | $ | 7,438 | $ | 8,531 | $ | 12,655 | ||||||||||
Earnings (loss) from discontinued operations, net of income taxes | 2 | $ | 131 | $ | - | $ | - | ||||||||||
Net Earnings Attributable to II-VI Incorporated | $ | 9,694 | $ | 7,569 | $ | 8,531 | $ | 12,655 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Basic earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.12 | $ | 0.14 | $ | 0.21 | |||||||||
Discontinued operation | $ | 0 | $ | - | $ | - | $ | - | |||||||||
Consolidated | $ | 0.16 | $ | 0.12 | $ | 0.14 | $ | 0.21 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Diluted earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.15 | $ | 0.12 | $ | 0.13 | $ | 0.20 | |||||||||
Discontinued operation | $ | 0 | $ | - | $ | - | $ | - | |||||||||
Consolidated | $ | 0.15 | $ | 0.12 | $ | 0.13 | $ | 0.2 | |||||||||
Fiscal 2013 | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
Quarter Ended | 2012 | 2012 | 2013 | 2013 | |||||||||||||
$0 | |||||||||||||||||
2013 | |||||||||||||||||
Net revenues | $ | 127,998 | $ | 125,107 | $ | 143,940 | $ | 154,030 | |||||||||
Cost of goods sold | 77,599 | 77,839 | 92,986 | 99,134 | |||||||||||||
Internal research and development | 5,585 | 5,626 | 5,781 | 5,697 | |||||||||||||
Selling, general and administrative | 26,356 | 26,174 | 27,004 | 29,803 | |||||||||||||
Interest expense | 36 | 223 | 449 | 452 | |||||||||||||
Other expense (income) - net | (761 | ) | (4,551 | ) | (1,401 | ) | (442 | ) | |||||||||
Earnings from continuing operations before income taxes | 19,183 | 19,796 | 19,121 | 19,386 | |||||||||||||
Income taxes | 4,262 | 6,721 | 2,861 | 4,922 | |||||||||||||
Earnings from continuing operations | 14,921 | $ | 13,075 | $ | 16,260 | $ | 14,464 | ||||||||||
Earnings (loss) from discontinued operations, net of income taxes | (1,789 | ) | $ | (608 | ) | $ | (166 | ) | $ | (4,226 | ) | ||||||
Net Earnings | 13,132 | $ | 12,467 | $ | 16,094 | $ | 10,238 | ||||||||||
Net Earnings Attributable to Noncontrolling Interest | 414 | $ | 267 | $ | 225 | $ | 212 | ||||||||||
Net Earnings Attributable to II-VI Incorporated | $ | 12,718 | $ | 12,200 | $ | 15,869 | $ | 10,026 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Basic earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.2 | $ | 0.26 | $ | 0.23 | |||||||||
Discontinued operation | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||||
Consolidated | $ | 0.2 | $ | 0.19 | $ | 0.26 | $ | 0.16 | |||||||||
Net Earnings Attributable to II-VI Incorporated: Diluted earnings | |||||||||||||||||
per share: | |||||||||||||||||
Continuing operations | $ | 0.23 | $ | 0.2 | $ | 0.25 | $ | 0.22 | |||||||||
Discontinued operation | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||||
Consolidated | $ | 0.2 | $ | 0.19 | $ | 0.25 | $ | 0.16 | |||||||||
Nature_of_Business_and_Summary2
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Accounts receivable factored | $12,700,000 | $8,500,000 | ' |
Inventory reserve amount | 12,000,000 | 7,100,000 | ' |
Total carrying value of equity method investment | 11,589,000 | 11,203,000 | ' |
Pro-rata share of loss from equity method investment | 698,000 | 1,048,000 | 1,059,000 |
Loss contingency liability | 0 | ' | ' |
Allowance for doubtful accounts | 1,852,000 | 1,479,000 | ' |
Allowance for warranty reserve | 2,859,000 | 1,661,000 | ' |
Maximum percentage of total revenues represented by distributors and agents that are not granted price protection | 10.00% | ' | ' |
Maximum percentage of contract related revenues | 5.00% | ' | ' |
Accumulated foreign currency translation adjustments, net of income taxes | 18,000,000 | 15,600,000 | ' |
Accumulated pension adjustments, net of income taxes | 1,400,000 | ' | ' |
Guangdong Fuxin Electronic Technology | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Non-controlling minority interest | 20.20% | ' | ' |
Pro-rata share of loss from equity method investment | 700,000 | 1,000,000 | 1,300,000 |
Dividends from equity investment | $300,000 | $500,000 | ' |
Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Finite-lived intangible assets useful life, years | '7 years | ' | ' |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Finite-lived intangible assets useful life, years | '18 years | ' | ' |
Building improvements and land improvements | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment estimated useful lives, years | '10 years | ' | ' |
Building improvements and land improvements | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment estimated useful lives, years | '20 years | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment estimated useful lives, years | '3 years | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, plant and equipment estimated useful lives, years | '12 years | ' | ' |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 12, 2013 | Nov. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
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 | Acquisitions of Two Oclaro | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash paid at acquisition date | $177,676,000 | $126,193,000 | $46,141,000 | $5,000,000 | $79,600,000 | ' | $90,601,000 | ' | ' |
Purchase of business - holdback amount recorded in other liabilities | ' | ' | ' | ' | 4,000,000 | ' | 6,000,000 | 2,000,000 | ' |
Goodwill | 196,145,000 | 123,352,000 | 80,748,000 | ' | 35,586,000 | ' | 37,507,000 | ' | ' |
Business acquisition, revenue of acquired entity | ' | ' | ' | ' | ' | 53,400,000 | ' | 61,800,000 | ' |
Business acquisition, earnings of acquired entity | ' | ' | ' | ' | ' | 2,600,000 | ' | 17,400,000 | ' |
Business acquisition, cash acquired | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' |
Payment of additional amount for working capital adjustment | ' | ' | ' | ' | ' | ' | 2,475,000 | ' | ' |
Business acquisition, transaction costs | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | 3,700,000 |
Business acquisition, transaction costs, tax amount | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' |
Summary_of_Purchase_Price_Deta
Summary of Purchase Price (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 12, 2013 | Nov. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | |
Oclaro's Fiber Amplifier and Micro Optics Business | Oclaro's Fiber Amplifier and Micro Optics Business | Oclaro Incorporated | Oclaro Incorporated | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net cash paid at acquisition date | $177,676,000 | $126,193,000 | $46,141,000 | $5,000,000 | $79,600,000 | $90,601,000 | ' |
Purchase of business - holdback amount recorded in other liabilities | ' | ' | ' | ' | 4,000,000 | 6,000,000 | 2,000,000 |
Purchase price | ' | ' | ' | ' | 88,600,000 | 99,076,000 | ' |
Additional cash paid for working capital adjustment | ' | ' | ' | ' | ' | $2,475,000 | ' |
Allocation_of_Purchase_Price_o
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed at Date of Acquisition (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | 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 | ' | ' | ' | ' | 1,035 |
Deferred income taxes | ' | ' | ' | ' | 1,771 |
Property, plant & equipment | ' | ' | ' | 9,700 | 30,184 |
Intangible assets | ' | ' | ' | 32,000 | 28,900 |
Goodwill | 196,145 | 123,352 | 80,748 | 35,586 | 37,507 |
Total assets acquired | ' | ' | ' | 88,600 | 125,468 |
Total assets acquired | ' | ' | ' | 88,600 | 125,468 |
Liabilities | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | 2,214 |
Deferred income taxes | ' | ' | ' | ' | 8,647 |
Accrued income taxes | ' | ' | ' | ' | 2,714 |
Other accrued liabilities | ' | ' | ' | ' | 12,817 |
Total liabilities assumed | ' | ' | ' | ' | 26,392 |
Net assets acquired | ' | ' | ' | ' | $99,076 |
Proforma_Consolidated_Results_
Pro-forma Consolidated Results of Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ' | ' |
Net revenues | $734,912 | $732,474 |
Net earnings attributable to II-VI Incorporated | $47,054 | $44,693 |
Basic earnings per share | $0.76 | $0.72 |
Diluted earnings per share | $0.75 | $0.70 |
Summary_of_Revenues_and_Earnin
Summary of Revenues and Earnings (Losses) of Discontinued Operation (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (loss) from discontinued operation net income taxes | $131 | $2 | ($4,226) | ($166) | ($608) | ($1,789) | $133 | ($6,789) | ($9,443) |
Tellurium product line | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | 1,849 | 7,321 | 18,227 |
Earnings (loss) from discontinued operation before income taxes | ' | ' | ' | ' | ' | ' | 133 | -6,789 | -9,583 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 140 |
Earnings (loss) from discontinued operation net income taxes | ' | ' | ' | ' | ' | ' | $133 | ($6,789) | ($9,443) |
Components_of_Inventories_Net_
Components of Inventories, Net of Reserves (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $71,949 | $59,290 |
Work in process | 44,739 | 43,895 |
Finished goods | 49,185 | 38,674 |
Inventories, Total | $165,873 | $141,859 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Land and improvements | $2,381 | $2,236 |
Buildings and improvements | 96,551 | 87,189 |
Machinery and equipment | 335,408 | 276,802 |
Construction in progress | 16,990 | 10,831 |
Property, Plant and Equipment, gross | 451,330 | 377,058 |
Less accumulated depreciation | -242,391 | -206,386 |
Property, Plant and Equipment, net | $208,939 | $170,672 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Depreciation expense | $41,805 | $34,135 | $30,072 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill [Line Items] | ' | ' |
Balance-beginning of period | $123,352 | $80,748 |
Goodwill acquired | 73,093 | 41,746 |
Goodwill adjustment | -516 | ' |
Foreign currency translation | 216 | 858 |
Balance-end of period | 196,145 | 123,352 |
Infrared Optics | Operating Segments | ' | ' |
Goodwill [Line Items] | ' | ' |
Balance-beginning of period | 9,677 | 9,612 |
Foreign currency translation | 77 | 65 |
Balance-end of period | 9,754 | 9,677 |
Near-Infrared Optics | Operating Segments | ' | ' |
Goodwill [Line Items] | ' | ' |
Balance-beginning of period | 60,269 | 48,496 |
Goodwill acquired | ' | 10,980 |
Foreign currency translation | 139 | 793 |
Balance-end of period | 60,408 | 60,269 |
Military & Materials | Operating Segments | ' | ' |
Goodwill [Line Items] | ' | ' |
Balance-beginning of period | ' | 12,326 |
Goodwill acquired | ' | 18,386 |
Balance-end of period | 30,712 | 30,712 |
Advanced Products Group | Operating Segments | ' | ' |
Goodwill [Line Items] | ' | ' |
Balance-beginning of period | 22,694 | 10,314 |
Goodwill acquired | ' | 12,381 |
Goodwill adjustment | -516 | ' |
Balance-end of period | 22,178 | 22,694 |
Active Optical Products | Operating Segments | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill acquired | 73,093 | ' |
Balance-end of period | $73,093 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Trade Names | Minimum | Maximum | Patents | Patents | Patents | Customer Lists | Customer Lists | Customer Lists | Oclaro Incorporated | Oclaro Incorporated | Oclaro Incorporated | ||||
Minimum | Maximum | Minimum | Maximum | Customer Lists | Technology and Patents | ||||||||||
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill adjustment | ($516,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 196,145,000 | 123,352,000 | 80,748,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,507,000 | ' | ' |
Percentage of fair value greater than carrying value | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense recorded on intangible assets | 11,300,000 | 6,700,000 | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period of patents and customer lists, in months | ' | ' | ' | ' | '7 years | '18 years | '118 months | '60 months | '240 months | '150 months | '120 months | '192 months | ' | ' | ' |
Identifiable intangibles assets recorded in connection with acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,900,000 | 50,100,000 | 10,800,000 |
Carrying amount of trade names acquired | ' | ' | ' | $16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross_Carrying_Amount_and_Accu
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $172,800 | $111,708 |
Accumulated Amortization | -36,396 | -25,007 |
Net Book Value | 136,404 | 86,701 |
Technology and Patents | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 50,505 | 39,659 |
Accumulated Amortization | -14,474 | -10,455 |
Net Book Value | 36,031 | 29,204 |
Trademarks | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 17,870 | 17,855 |
Accumulated Amortization | -1,037 | -963 |
Net Book Value | 16,833 | 16,892 |
Customer Lists | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 102,839 | 52,614 |
Accumulated Amortization | -19,448 | -12,189 |
Net Book Value | 83,391 | 40,425 |
Other | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,586 | 1,580 |
Accumulated Amortization | -1,437 | -1,400 |
Net Book Value | $149 | $180 |
Estimated_Amortization_Expense
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets [Line Items] | ' |
2015 | $11,716 |
2016 | 11,619 |
2017 | 11,609 |
2018 | 11,140 |
2019 | $10,715 |
Components_of_Debt_Detail
Components of Debt (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Line of credit, interest at LIBOR, as defined, plus 1.75% and1.25%, respectively | $154,000 | ' | $111,000 |
Term loan, interest at LIBOR, as defined, plus 1.25% | 85,000 | 100,000 | ' |
Yen denominated line of credit, interest at LIBOR, as defined,plus 0.625% | 2,960 | ' | 3,036 |
Total debt | 241,960 | ' | 114,036 |
Current portion of long-term debt | -20,000 | ' | ' |
Long-term debt, less current portion | $221,960 | ' | $114,036 |
Components_of_Debt_Parenthetic
Components of Debt (Parenthetical) (Detail) (London Interbank Offered Rate (LIBOR)) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, rate added on variable rate | 1.75% | 1.25% |
Term loans | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, rate added on variable rate | 1.25% | 1.25% |
Yen denominated line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, rate added on variable rate | 0.63% | 0.63% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | Singapore Bank | Singapore Bank | Revolving Credit Facility | Yen denominated line of credit | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Prime Rate | Prime Rate | Maximum | Maximum | Maximum | Minimum | Minimum | |
USD ($) | USD ($) | USD ($) | JPY (¥) | Yen denominated line of credit | Yen denominated line of credit | Singapore Bank | Singapore Bank | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | ||||
USD ($) | Revolving Credit Facility | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | ' | ' | ' | $300,000 | $400,000 | $225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, prior borrowing capacity | ' | ' | ' | ' | ' | 140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan | 100,000,000 | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | 0.63% | 0.63% | 1.00% | 1.00% | ' | 1.50% | 1.75% | 0.63% | 0.75% |
Financing cost incurred | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount available under lines of credit | ' | 71,000,000 | 29,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total outstanding letters of credit | ' | 1,900,000 | 1,300,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate of total borrowings | ' | 1.80% | 1.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average of total borrowings | ' | 222,600,000 | 82,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate of borrowings | ' | ' | ' | 5.25% | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, interest paid | ' | 4,200,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, commitment fees paid | ' | $4,200,000 | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Components_of_Income_Loss_from
Components of Income (Loss) from Continuing Operations Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Loss From Continuing Operations Before Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($2,863) | $19,253 | $16,025 |
Non-U.S. income | ' | ' | ' | ' | ' | ' | ' | ' | 48,504 | 58,233 | 72,453 |
Earnings from Continuing Operations Before Income Taxes | $14,157 | $9,025 | $9,524 | $12,935 | $19,386 | $19,121 | $19,796 | $19,183 | $45,641 | $77,486 | $88,478 |
Components_of_Income_Tax_Expen
Components of Income Tax Expense (Benefit) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Tax Expenses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current, Federal | ' | ' | ' | ' | ' | ' | ' | ' | ($1,067) | $2,759 | $283 |
Current, State | ' | ' | ' | ' | ' | ' | ' | ' | 152 | 68 | 227 |
Current, Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 12,675 | 13,977 | 16,673 |
Total Current | ' | ' | ' | ' | ' | ' | ' | ' | 11,760 | 16,804 | 17,183 |
Deferred, Federal | ' | ' | ' | ' | ' | ' | ' | ' | -16 | 1,721 | 3,409 |
Deferred, State | ' | ' | ' | ' | ' | ' | ' | ' | 148 | 113 | -356 |
Deferred, Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -4,567 | 128 | -2,476 |
Total Deferred | ' | ' | ' | ' | ' | ' | ' | ' | -4,435 | 1,962 | 577 |
Total Income Tax Expense | $1,502 | $494 | $2,086 | $3,243 | $4,922 | $2,861 | $6,721 | $4,262 | $7,325 | $18,766 | $17,760 |
Schedule_of_Principal_Items_Co
Schedule of Principal Items Comprising Deferred Income Taxes (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Significant Components Of Deferred Income Tax Expense [Line Items] | ' | ' |
Inventory capitalization | $5,402 | $6,333 |
Non-deductible accruals | 1,926 | 1,930 |
Accrued employee benefits | 9,226 | 6,790 |
Net-operating loss and credit carryforwards | 21,976 | 22,849 |
Share-based compensation expense | 16,005 | 15,021 |
Other | 577 | 205 |
Valuation allowances | -2,212 | -2,885 |
Total deferred income tax assets | 52,900 | 50,243 |
Tax over book accumulated depreciation | -17,625 | -16,988 |
Intangible assets | -25,505 | -21,561 |
Other | -2,786 | -2,409 |
Total deferred income tax liabilities | -45,916 | -40,958 |
Net deferred income taxes | $6,984 | $9,285 |
Schedule_of_Reconciliation_of_
Schedule of Reconciliation of Income Tax Expense at Statutory Federal Rate to Reported Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxes at statutory rate, amount | ' | ' | ' | ' | ' | ' | ' | ' | $15,974 | $27,120 | $30,967 |
State income taxes-net of federal benefit, amount | ' | ' | ' | ' | ' | ' | ' | ' | 254 | 168 | -187 |
Taxes on non U.S. earnings, amount | ' | ' | ' | ' | ' | ' | ' | ' | -6,672 | -6,991 | -9,841 |
Settlement of unrecognized tax benefits, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -842 |
Research and manufacturing incentive deductions, amount | ' | ' | ' | ' | ' | ' | ' | ' | -2,190 | -1,458 | -2,079 |
Other, amount | ' | ' | ' | ' | ' | ' | ' | ' | -41 | -73 | -258 |
Total Income Tax Expense | $1,502 | $494 | $2,086 | $3,243 | $4,922 | $2,861 | $6,721 | $4,262 | $7,325 | $18,766 | $17,760 |
Taxes at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
State income taxes-net of federal benefit, rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' |
Taxes on non U.S. earnings, rate | ' | ' | ' | ' | ' | ' | ' | ' | -15.00% | -9.00% | -11.00% |
Settlement of unrecognized tax benefits, rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1.00% |
Research and manufacturing incentive deductions, rate | ' | ' | ' | ' | ' | ' | ' | ' | -5.00% | -2.00% | -3.00% |
Total Effective Income Tax, rate | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | 24.00% | 20.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income Taxes [Line Items] | ' | ' | ' |
Cash paid for income taxes | $17,200,000 | $11,900,000 | $13,200,000 |
Cumulative foreign undistributed net earnings | 366,000,000 | ' | ' |
Additional deferred tax liability due to undistributed foreign earnings | 74,000,000 | ' | ' |
Interest and penalties recognized within income tax expense (benefit) | 0 | 100,000 | -200,000 |
Interest and penalties accrued | 200,000 | 200,000 | 100,000 |
Unrecognized tax benefits that would impact effective tax rate | 2,800,000 | 3,200,000 | ' |
Unrecognized tax benefits expected decrease during the next twelve months | 1,400,000 | ' | ' |
Settlement of unrecognized tax benefits, amount | ' | ' | $842,000 |
Income tax examination, year(s) under examination | '2010 | ' | ' |
Schedule_of_Sources_of_Differe
Schedule of Sources of Differences Resulting in Deferred Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Significant Components Of Deferred Income Tax Expense [Line Items] | ' | ' | ' |
Depreciation and amortization | ($3,581) | ($2,825) | $38 |
Inventory capitalization | 646 | 84 | -1,947 |
Net operating loss and credit carryforwards net of valuation allowances | 533 | 4,786 | 1,859 |
Share-based compensation expense | -984 | -3,487 | -2,442 |
Other | -1,049 | 3,404 | 3,069 |
Nondeductible expense, total | ($4,435) | $1,962 | $577 |
Schedule_of_Gross_Operating_Lo
Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Federal research and development credits | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards | 4,117 |
Federal research and development credits | Minimum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards, expiration date | 'June 2019 |
Federal research and development credits | Maximum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards, expiration date | 'June 2034 |
State Tax Credits | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards | 2,827 |
State Tax Credits | Minimum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards, expiration date | 'June 2014 |
State Tax Credits | Maximum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards, expiration date | 'June 2029 |
Federal | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards | 36,124 |
Federal | Minimum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards, expiration date | 'June 2022 |
Federal | Maximum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards, expiration date | 'June 2029 |
State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards | 25,116 |
State | Minimum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards, expiration date | 'June 2014 |
State | Maximum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards, expiration date | 'June 2034 |
Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards | 9,427 |
Foreign | Minimum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards, expiration date | 'June 2016 |
Foreign | Maximum | ' |
Operating Loss Carryforwards [Line Items] | ' |
Loss carryforwards, expiration date | 'June 2022 |
Schedule_of_Changes_in_Liabili
Schedule of Changes in Liability for Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items] | ' | ' | ' |
Balance at Beginning of Year | $3,181 | $2,850 | $4,744 |
Increases in current year tax positions | 298 | 338 | 738 |
Increases in prior year tax positions | 2 | ' | ' |
Decreases in prior year tax positions | ' | -7 | -41 |
Settlements | ' | ' | -1,788 |
Expiration of statute of limitations | -706 | ' | -803 |
Balance at End of Year | $2,775 | $3,181 | $2,850 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 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 | 507,000 | 470,000 | 220,000 |
Computation_of_Earnings_Per_Sh
Computation of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings from continuing operations attributable to II-VI Incorporated | ' | ' | ' | ' | ' | ' | ' | ' | $38,316 | $57,602 | $69,749 |
Earnings (loss) from discontinued operation | ' | ' | 131 | 2 | -4,226 | -166 | -608 | -1,789 | 133 | -6,789 | -9,443 |
Net Earnings Attributable to II-VI Incorporated | $12,655 | $8,531 | $7,569 | $9,694 | $10,026 | $15,869 | $12,200 | $12,718 | $38,449 | $50,813 | $60,306 |
Weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | 62,248 | 62,411 | 62,823 |
Basic earnings (loss) attributable to II-VI Incorporated per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | $0.21 | $0.14 | $0.12 | $0.16 | $0.23 | $0.26 | $0.20 | $0.23 | $0.62 | $0.92 | $1.10 |
Discontinued operation | ' | ' | ' | $0 | ($0.07) | $0 | ($0.01) | ($0.03) | ' | ($0.11) | ($0.15) |
Consolidated | $0.21 | $0.14 | $0.12 | $0.16 | $0.16 | $0.26 | $0.19 | $0.20 | $0.62 | $0.81 | $0.96 |
Diluted effect of common stock equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 1,438 | 1,473 | 1,562 |
Diluted weighted average common shares | ' | ' | ' | ' | ' | ' | ' | ' | 63,686 | 63,884 | 64,385 |
Diluted earnings (loss) attributable to II-VI Incorporated per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | $0.20 | $0.13 | $0.12 | $0.15 | $0.22 | $0.25 | $0.20 | $0.23 | $0.60 | $0.90 | $1.08 |
Discontinued operation | ' | ' | ' | $0 | ($0.07) | $0 | ($0.01) | ($0.03) | ' | ($0.11) | ($0.15) |
Consolidated | $0.20 | $0.13 | $0.12 | $0.15 | $0.16 | $0.25 | $0.19 | $0.20 | $0.60 | $0.80 | $0.94 |
Operating_Leases_Additional_In
Operating Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases expiration date | 31-Jul-61 | ' | ' |
Rent expense | $13.60 | $9.80 | $7.60 |
Operating_Lease_Future_Rental_
Operating Lease Future Rental Commitments (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2015 | $13,298 |
2016 | 10,056 |
2017 | 7,191 |
2018 | 5,158 |
2019 | 1,990 |
Thereafter | $18,795 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 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% | ' | ' |
Share based compensation expense | $12,997,000 | $12,657,000 | $11,584,000 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, outstanding | 5,200,000 | 9,700,000 | 14,600,000 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, exercised | 5,200,000 | 9,700,000 | 14,600,000 |
Total intrinsic value of stock options and cash-based stock appreciation rights, exercised | 3,100,000 | 2,900,000 | 4,500,000 |
Unrecognized compensation cost, weighted-average period of recognition, 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 | ' | ' |
Stock Options and Cash-Based Stock Appreciation Rights | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share based compensation expense | 5,818,000 | 5,046,000 | 6,025,000 |
Weighted-average fair values of stock options granted under the stock option Plan | $8.21 | $8.37 | $9.32 |
Share based compensation, estimated forfeiture percentage | 16.00% | ' | ' |
Share based compensation expense attributable to non-vested shares | 9,400,000 | ' | ' |
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 expense | 4,868,000 | 4,411,000 | 2,945,000 |
Share based compensation, estimated forfeiture percentage | 7.50% | ' | ' |
Share based compensation, vesting period years | '3 years | ' | ' |
Restricted Stock | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share based compensation expense attributable to non-vested shares | 5,700,000 | ' | ' |
Unrecognized compensation cost, weighted-average period of recognition, years | '2 years | ' | ' |
Total fair value of restricted stock grant | 4,500,000 | 7,000,000 | 5,500,000 |
Total fair value of restricted stock vested | 3,800,000 | 700,000 | ' |
Performance Shares | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share based compensation expense attributable to non-vested shares | 3,300,000 | ' | ' |
Unrecognized compensation cost, weighted-average period of recognition, years | '2 years | ' | ' |
Total fair value of restricted stock grant | 2,100,000 | 5,900,000 | 3,300,000 |
Total fair value of restricted stock vested | 1,300,000 | 2,600,000 | 1,600,000 |
Liability Awards | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Share based compensation expense | $700,000 | $700,000 | ' |
Omnibus Incentive Plan | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' |
Common stock authorized for issuance under the Plan | 1,900,000 | ' | ' |
Shares available to be issued under the Plan | 1,242,317 | ' | ' |
ShareBased_Compensation_Expens
Share-Based Compensation Expense by Award Type (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share based compensation expense | $12,997 | $12,657 | $11,584 |
Stock Options and Cash-Based Stock Appreciation Rights | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share based compensation expense | 5,818 | 5,046 | 6,025 |
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 | 4,868 | 4,411 | 2,945 |
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 | $2,311 | $3,200 | $2,614 |
Fair_Value_Assumptions_for_Sto
Fair Value Assumptions for Stock Option and Stock Appreciation Rights (Detail) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Fair Value Option [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.71% | 0.98% | 1.05% |
Expected volatility | 47.00% | 49.00% | 59.00% |
Expected life of options | '5 years 6 months 22 days | '5 years 7 months 28 days | '5 years 5 months 19 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock_Option_and_CashBased_Sto
Stock Option and Cash-Based Stock Appreciation Rights Activity (Detail) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Number of Shares | ' |
Outstanding - July 1, 2013 | 4,670,011 |
Granted | 612,180 |
Exercised | -438,449 |
Forfeited and Expired | -139,188 |
Outstanding - June 30, 2014 | 4,704,554 |
Exercisable - June 30, 2014 | 3,025,156 |
Weighted Average Exercise Price | ' |
Outstanding - July 1, 2013 | $15.59 |
Granted | $18.38 |
Exercised | $10.22 |
Forfeited and Expired | $18.51 |
Outstanding - June 30, 2014 | $16.37 |
Exercisable - June 30, 2014 | $15.48 |
Cash-Based Stock Appreciation Rights | ' |
Number of Shares | ' |
Outstanding - July 1, 2013 | 60,820 |
Granted | 58,470 |
Exercised | -460 |
Forfeited and Expired | -10,112 |
Outstanding - June 30, 2014 | 108,718 |
Exercisable - June 30, 2014 | 10,574 |
Weighted Average Exercise Price | ' |
Outstanding - July 1, 2013 | $18.78 |
Granted | $17.88 |
Exercised | $18.93 |
Forfeited and Expired | $18.94 |
Outstanding - June 30, 2014 | $18.28 |
Exercisable - June 30, 2014 | $18.79 |
ShareBased_Compensation_Outsta
Share-Based Compensation Outstanding and Exercisable Options (Detail) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Stock Options and Cash-Based Stock Appreciation Rights | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 4,813,272 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | '5 years 6 months 7 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $16.42 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 3,035,730 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | '4 years 1 month 21 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $15.49 |
$8.44-$12.80 | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower range | $8.44 |
Range of Exercise Prices, Upper range | $12.80 |
$8.44-$12.80 | Stock Options and Cash-Based Stock Appreciation Rights | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 1,331,888 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | '3 years 18 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $10.70 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 1,233,668 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | '2 years 10 months 17 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $10.59 |
$13.17-$20.26 | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower range | $13.17 |
Range of Exercise Prices, Upper range | $20.26 |
$13.17-$20.26 | Stock Options and Cash-Based Stock Appreciation Rights | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 2,831,846 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | '7 years |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $17.45 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 1,196,748 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | '5 years 5 months 9 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $16.47 |
$20.47-$27.18 | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower range | $20.47 |
Range of Exercise Prices, Upper range | $27.18 |
$20.47-$27.18 | Stock Options and Cash-Based Stock Appreciation Rights | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 649,538 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | '4 years 4 months 13 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $23.52 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 605,314 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | '4 years 2 months 5 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $23.49 |
Restricted_Share_and_CashBased
Restricted Share and Cash-Based Restricted Share Unit Activity (Detail) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Restricted Stock | ' |
Number of Shares | ' |
Nonvested - June 30, 2013 | 798,624 |
Granted | 223,760 |
Vested | -195,707 |
Forfeited | -42,642 |
Nonvested - June 30, 2014 | 784,035 |
Weighted Average Grant Date Fair Value | ' |
Nonvested - June 30, 2013 | $18.18 |
Granted | $17.26 |
Vested | $19.19 |
Forfeited | $18.29 |
Nonvested - June 30, 2014 | $17.66 |
Cash-Based Restricted Share Units | ' |
Number of Shares | ' |
Nonvested - June 30, 2013 | 30,270 |
Granted | 39,880 |
Forfeited | -5,840 |
Nonvested - June 30, 2014 | 64,310 |
Weighted Average Grant Date Fair Value | ' |
Nonvested - June 30, 2013 | $18.78 |
Granted | $17.05 |
Forfeited | $18.63 |
Nonvested - June 30, 2014 | $17.72 |
Performance_Share_Award_Activi
Performance Share Award Activity (Detail) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Performance Shares | ' |
Number of Shares | ' |
Nonvested - June 30, 2013 | 359,754 |
Granted | 105,900 |
Vested | -77,656 |
Forfeited | -55,818 |
Nonvested - June 30, 2014 | 332,180 |
Performance Share Awards | ' |
Weighted Average Grant Date Fair Value | ' |
Nonvested - June 30, 2013 | 17.85 |
Granted | 19.37 |
Vested | 17.53 |
Forfeited | 17.56 |
Nonvested - June 30, 2014 | 18.46 |
Cash-Based Performance Share Units | ' |
Number of Shares | ' |
Nonvested - June 30, 2013 | 107,096 |
Granted | 2,150 |
Forfeited | -10,102 |
Nonvested - June 30, 2014 | 99,144 |
Weighted Average Grant Date Fair Value | ' |
Nonvested - June 30, 2013 | 18.93 |
Granted | 19.37 |
Forfeited | 18.93 |
Nonvested - June 30, 2014 | 18.94 |
Financial_Information_of_Compa
Financial Information of Company's Operation by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $187,921 | $173,555 | $171,765 | $150,020 | $154,030 | $143,940 | $125,107 | $127,998 | $683,261 | $551,075 | $516,403 |
Segment earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 46,486 | 71,491 | 81,522 |
Interest expense | -1,415 | -1,412 | -1,169 | -483 | -452 | -449 | -223 | -36 | -4,479 | -1,160 | -212 |
Other income, net | ' | ' | ' | ' | ' | ' | ' | ' | 3,634 | 7,155 | 7,168 |
Income taxes | -1,502 | -494 | -2,086 | -3,243 | -4,922 | -2,861 | -6,721 | -4,262 | -7,325 | -18,766 | -17,760 |
Earnings (loss) from discontinued operation | ' | ' | 131 | 2 | -4,226 | -166 | -608 | -1,789 | 133 | -6,789 | -9,443 |
Net earnings | ' | ' | ' | ' | 10,238 | 16,094 | 12,467 | 13,132 | 38,449 | 51,931 | 61,275 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 53,098 | 40,792 | 34,523 |
Segment assets | 1,071,926 | ' | ' | ' | 863,802 | ' | ' | ' | 1,071,926 | 863,802 | ' |
Expenditures for property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 29,220 | 25,205 | 42,797 |
Total carrying value of equity method investment | 11,589 | ' | ' | ' | 11,203 | ' | ' | ' | 11,589 | 11,203 | ' |
Goodwill | 196,145 | ' | ' | ' | 123,352 | ' | ' | ' | 196,145 | 123,352 | 80,748 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | -17,479 | -13,678 | -17,193 |
Infrared Optics | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 209,658 | 203,319 | 201,611 |
Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,608 | 2,618 | 3,174 |
Segment earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 40,736 | 49,457 | 51,095 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 9,174 | 8,423 | 8,480 |
Segment assets | 231,874 | ' | ' | ' | 238,700 | ' | ' | ' | 231,874 | 238,700 | ' |
Expenditures for property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 9,719 | 5,812 | 8,072 |
Goodwill | 9,754 | ' | ' | ' | 9,677 | ' | ' | ' | 9,754 | 9,677 | 9,612 |
Near-Infrared Optics | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 144,677 | 154,852 | 140,001 |
Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,406 | 896 | 2,135 |
Segment earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 9,814 | 19,628 | 14,060 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 16,764 | 17,286 | 15,803 |
Segment assets | 295,953 | ' | ' | ' | 307,431 | ' | ' | ' | 295,953 | 307,431 | ' |
Expenditures for property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 8,171 | 9,170 | 12,249 |
Goodwill | 60,408 | ' | ' | ' | 60,269 | ' | ' | ' | 60,408 | 60,269 | 48,496 |
Military & Materials | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 98,324 | 97,116 | 100,235 |
Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 6,514 | 4,853 | 7,589 |
Segment earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 12,851 | 656 | 7,925 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 8,111 | 7,023 | 5,957 |
Segment assets | 117,730 | ' | ' | ' | 139,923 | ' | ' | ' | 117,730 | 139,923 | ' |
Expenditures for property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 5,539 | 3,909 | 11,983 |
Goodwill | 30,712 | ' | ' | ' | 30,712 | ' | ' | ' | 30,712 | 30,712 | 12,326 |
Advanced Products Group | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 115,394 | 95,788 | 74,556 |
Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 6,388 | 5,311 | 4,295 |
Segment earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 9,419 | 1,750 | 8,442 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 9,947 | 8,060 | 4,283 |
Segment assets | 175,986 | ' | ' | ' | 177,748 | ' | ' | ' | 175,986 | 177,748 | ' |
Expenditures for property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 3,525 | 6,314 | 10,493 |
Total carrying value of equity method investment | 11,589 | ' | ' | ' | 11,203 | ' | ' | ' | 11,589 | 11,203 | ' |
Goodwill | 22,178 | ' | ' | ' | 22,694 | ' | ' | ' | 22,178 | 22,694 | 10,314 |
Active Optical Products | Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 115,208 | ' | ' |
Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 563 | ' | ' |
Segment earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -26,334 | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 9,102 | ' | ' |
Segment assets | 250,383 | ' | ' | ' | ' | ' | ' | ' | 250,383 | ' | ' |
Expenditures for property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 2,266 | ' | ' |
Goodwill | $73,093 | ' | ' | ' | ' | ' | ' | ' | $73,093 | ' | ' |
Geographical_Information_of_Re
Geographical Information of Revenue (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $187,921 | $173,555 | $171,765 | $150,020 | $154,030 | $143,940 | $125,107 | $127,998 | $683,261 | $551,075 | $516,403 |
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 263,493 | 251,735 | 204,706 |
CHINA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 114,247 | 123,306 | 123,348 |
SWITZERLAND | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 70,260 | 10,268 | 11,714 |
GERMANY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 69,983 | 59,628 | 51,962 |
HONG KONG | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 54,602 | ' | ' |
JAPAN | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 38,110 | 29,462 | 35,915 |
VIET NAM | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 23,141 | 29,425 | 31,500 |
PHILIPPINES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 14,959 | 17,400 | 26,185 |
ITALY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 8,897 | 7,593 | 7,214 |
SINGAPORE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 8,273 | 6,280 | 7,238 |
UNITED KINGDOM | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 7,148 | 6,865 | 6,026 |
BELGIUM | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 6,578 | 5,821 | 6,010 |
AUSTRALIA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,570 | 3,292 | 4,585 |
Total Non-United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $419,768 | $299,340 | $311,697 |
Geographical_Information_of_Lo
Geographical Information of Long Lived Assets (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | |||
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | $216,099 | $176,120 | $155,825 |
UNITED STATES | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 109,138 | 110,337 | 85,709 |
CHINA | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 45,667 | 43,139 | 45,412 |
SWITZERLAND | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 22,524 | 5 | 10 |
GERMANY | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 16,129 | 2,107 | 1,581 |
VIET NAM | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 9,107 | 10,081 | 10,278 |
PHILIPPINES | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 6,205 | 7,207 | 8,692 |
HONG KONG | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 5,111 | ' | ' |
Other Country | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 2,218 | 3,244 | 4,143 |
Total Non-United States | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | $106,961 | $65,783 | $70,116 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' |
Payment of earnout arrangement | $3 |
Business acquisition, additional cash earnout opportunities | 4.2 |
Unrealized gain due to fair value re-measurement | $0.30 |
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 $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Contingent Earnout Arrangement | ' | $3,300 |
Foreign currency forward contracts | 54 | 23 |
Fair Value, Inputs, Level 1 | ' | ' |
Liabilities: | ' | ' |
Contingent Earnout Arrangement | ' | ' |
Fair Value, Inputs, Level 2 | ' | ' |
Liabilities: | ' | ' |
Contingent Earnout Arrangement | ' | ' |
Foreign currency forward contracts | 54 | 23 |
Fair Value, Inputs, Level 3 | ' | ' |
Liabilities: | ' | ' |
Contingent Earnout Arrangement | ' | $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) (USD $) | 12 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Measurements, Recurring | ||||
Business Acquisition Contingent Consideration [Line Items] | ' | ' | ' | ' |
Balance - beginning of period | ' | ' | $3,300 | $3,300 |
Payment of earnout arrangement | 3,000 | ' | ' | -3,000 |
Changes in fair value | -300 | ' | ' | -300 |
Balance - end of period | ' | ' | $3,300 | ' |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | USD ($) | JPY (¥) | USD ($) |
Derivative [Line Items] | ' | ' | ' |
Foreign currency forward exchange contracts, notional amount | $7.40 | ¥ 250 | $4.70 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Contributions to profit sharing retirement plan | $2,500,000 | $2,200,000 | $2,800,000 |
Common stock discount percentage from the prevailing market price | 5.00% | ' | ' |
Percentage of maximum employee subscription rate on base pay | 10.00% | ' | ' |
Contributions to the Compensation Plan by the employer | 2,253,000 | ' | ' |
Contributions to the Compensation Plan by the employer in fiscal year 2015 | 2,100,000 | ' | ' |
Amount recognized as a component of net periodic benefit cost | ' | 300,000 | ' |
Expected future benefit payments, 2015 | 1,300,000 | ' | ' |
Expected future benefit payments, 2016 | 1,100,000 | ' | ' |
Expected future benefit payments, 2017 | 1,600,000 | ' | ' |
Expected future benefit payments, 2018 | 700,000 | ' | ' |
Expected future benefit payments, 2019 | 3,100,000 | ' | ' |
Expected future benefit payments, Next five years thereafter | 10,700,000 | ' | ' |
Pension liability | 600,000 | 1,100,000 | ' |
Percentage of discretionary incentive compensation | 100.00% | ' | ' |
Contributions to the Compensation Plan by the employees | 1,900,000 | 1,800,000 | 1,400,000 |
P R M Defined Benefit Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Contributions to the Compensation Plan by the employer | $0 | $0 | $0 |
Employee Stock | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Common stock authorized for issuance under the Plan | 1,600,000 | ' | ' |
Common stock available for purchase under the plan | 543,234 | 560,034 | ' |
Schedule_of_Changes_in_Project
Schedule of Changes in Projected Benefit Obligations and Plan Assets (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Change in projected benefit obligation: | ' |
Projected benefit obligation, date of acquisition | $38,748 |
Service cost | 3,375 |
Interest cost | 812 |
Plan amendments | -1,661 |
Participant contributions | 1,110 |
Benefits (paid) received | -3,959 |
Actuarial (gain) loss on obligation | -867 |
Currency translation adjustment | 1,832 |
Projected benefit obligation, end of period | 39,390 |
Change in plan assets: | ' |
Plan assets at fair value, date of acquisition | 30,167 |
Actual return on plan assets | 776 |
Employer contributions | 2,253 |
Participant contributions | 1,110 |
Benefits (paid) received | -3,959 |
Currency translation adjustment | 1,617 |
Plan assets at fair value, end of period | 31,965 |
Other non-current assets: | ' |
Deferred tax asset | 1,570 |
Other non-current liabilities: | ' |
Underfunded pension liability | 7,425 |
Amounts recognized in accumulated other comprehensive income, net of tax: | ' |
Pension adjustment, net of taxes of $387 | 1,443 |
Accumulated benefit obligation, end of period | $35,581 |
Schedule_of_Net_Periodic_Pensi
Schedule of Net Periodic Pension Costs (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Service cost | $3,375 |
Interest cost | 812 |
Expected return on plan assets | -1,338 |
Net amortization | ' |
Net period pension cost | $2,849 |
Schedule_of_Projected_and_Accu
Schedule of Projected and Accumulated Benefit Obligations Rates (Detail) | 12 Months Ended |
Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ' |
Discount rate | 2.00% |
Salary increase rate | 2.00% |
Expected return on plan assets | 3.50% |
Expected average remaining working life (in years) | '13 years 1 month 6 days |
Schedule_of_Swiss_Plans_Asset_
Schedule of Swiss Plan's Asset Allocation (Detail) | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Percentage of plan assets | 100.00% |
Fixed Income Investments | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Percentage of plan assets | 22.00% |
Equity Investments | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Percentage of plan assets | 54.00% |
Real Estate | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Percentage of plan assets | 14.00% |
Cash | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Percentage of plan assets | 8.00% |
Alternative Investments | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Percentage of plan assets | 2.00% |
Components_of_Other_Accrued_Li
Components of Other Accrued Liabilities (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Other accrued liabilities | $31,521 | $34,695 |
Acquisition holdbacks | ' | ' |
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Other accrued liabilities | 10,000 | ' |
Redeemable noncontrolling interest liability | ' | ' |
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Other accrued liabilities | ' | 8,568 |
Earnout arrangement | ' | ' |
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Other accrued liabilities | ' | 3,300 |
Warranty reserves | ' | ' |
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Other accrued liabilities | 2,859 | 1,661 |
Other accrued liabilities | ' | ' |
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Other accrued liabilities | $18,662 | $21,166 |
Other_Accrued_Liabilities_Addi
Other Accrued Liabilities - Additional Information (Detail) (Redeemable noncontrolling interest liability, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Redeemable noncontrolling interest liability | ' | ' |
Schedule Of Accrued Liabilities [Line Items] | ' | ' |
Minority interest, ownership percentage | ' | 25.07% |
Minority interest, value | ' | $7.60 |
Dividends declared and paid to the noncontrolling interest holder | $1 | ' |
Changes_in_the_Carrying_Amount
Changes in the Carrying Amount of Redeemable Noncontrolling Interest (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Redeemable Noncontrolling Interest [Line Items] | ' | ' | ' |
Balance at Beginning of Year | ' | $5,160 | $1,828 |
Net earnings attributable to redeemable noncontrolling interest | ' | 1,118 | 969 |
Other changes | ' | -585 | -267 |
Redemption value adjustment to redeemable noncontrolling interest | ' | 2,875 | 2,630 |
Reclassification of redeemable noncontrolling interest to Other accrued liabilities | ' | -8,568 | ' |
Balance at End of Year | ' | ' | $5,160 |
Change_in_Carrying_Value_of_Co
Change in Carrying Value of Company's Warranty Reserve (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Guarantee Obligations [Line Items] | ' |
Balance-Beginning of Year | $1,661 |
Settlements during the period | -1,843 |
Additional warranty liability recorded | 1,868 |
Warranty liability assumed through acquisitions | 1,173 |
Balance-End of Year | $2,859 |
Schedule_of_Future_Commitments
Schedule of Future Commitments (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
2015 | $15,906 |
2016 | 489 |
2017 | 488 |
2018 | ' |
2019 | ' |
Schedule_of_Future_Minimum_Lea
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Capital Leased Assets [Line Items] | ' |
2015 | $1,071 |
2016 | 1,071 |
2017 | 1,071 |
2018 | 1,071 |
2019 | 1,071 |
Thereafter | 12,228 |
Total minimum lease payments | 17,583 |
Less amount representing interest | 5,947 |
Present value of capitalized payments | 11,636 |
Less: current portion | 453 |
Long-term portion | $11,183 |
Capital_Lease_Additional_Infor
Capital Lease - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Aug. 31, 2014 | Jun. 30, 2014 |
Forecast | Capital Lease | ||
HIGHYAG | |||
Capital Leased Assets [Line Items] | ' | ' | ' |
Capitalized payments property plant and equipment | $11,636,000 | ' | ' |
Property, plant and equipment estimated useful lives, years | ' | ' | '17 years |
Cash paid for purchase of business | ' | $13,400,000 | ' |
Share_Repurchase_Program_Detai
Share Repurchase Program (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | 31-May-12 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Aug. 31, 2014 | Jun. 30, 2015 | |
Forecast | Forecast | ||||||
Equity Class Of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $20,000,000 | $25,000,000 | ' | ' | ' | $50,000,000 | ' |
Treasury stock, shares | ' | ' | 1,333,355 | 1,141,022 | 301,716 | ' | 180,000 |
Purchase of Treasury Stock | ' | ' | $19,973,000 | $19,978,000 | $4,988,000 | ' | $2,500,000 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Quarterly Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $187,921 | $173,555 | $171,765 | $150,020 | $154,030 | $143,940 | $125,107 | $127,998 | $683,261 | $551,075 | $516,403 |
Cost of goods sold | 125,600 | 118,865 | 118,371 | 93,709 | 99,134 | 92,986 | 77,839 | 77,599 | 456,545 | 347,558 | 315,056 |
Internal research and development | 11,322 | 12,099 | 11,355 | 7,747 | 5,697 | 5,781 | 5,626 | 5,585 | 42,523 | 22,689 | 21,410 |
Selling, general and administrative | 36,295 | 33,848 | 32,471 | 35,093 | 29,803 | 27,004 | 26,174 | 26,356 | 137,707 | 109,337 | 98,415 |
Interest expense | 1,415 | 1,412 | 1,169 | 483 | 452 | 449 | 223 | 36 | 4,479 | 1,160 | 212 |
Other expense (income), net | -868 | -1,694 | -1,125 | 53 | -442 | -1,401 | -4,551 | -761 | -3,634 | -7,155 | -7,168 |
Earnings Before Income Taxes | 14,157 | 9,025 | 9,524 | 12,935 | 19,386 | 19,121 | 19,796 | 19,183 | 45,641 | 77,486 | 88,478 |
Income taxes | 1,502 | 494 | 2,086 | 3,243 | 4,922 | 2,861 | 6,721 | 4,262 | 7,325 | 18,766 | 17,760 |
Earnings from continuing operations | 12,655 | 8,531 | 7,438 | 9,692 | 14,464 | 16,260 | 13,075 | 14,921 | 38,316 | 58,720 | 70,718 |
Earnings (loss) from discontinued operation | ' | ' | 131 | 2 | -4,226 | -166 | -608 | -1,789 | 133 | -6,789 | -9,443 |
Net earnings | ' | ' | ' | ' | 10,238 | 16,094 | 12,467 | 13,132 | 38,449 | 51,931 | 61,275 |
Net Earnings Attributable to Noncontrolling Interest | ' | ' | ' | ' | 212 | 225 | 267 | 414 | ' | ' | ' |
Net Earnings Attributable to II-VI Incorporated | $12,655 | $8,531 | $7,569 | $9,694 | $10,026 | $15,869 | $12,200 | $12,718 | $38,449 | $50,813 | $60,306 |
Net Earnings Attributable to II-VI Incorporated: Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | $0.21 | $0.14 | $0.12 | $0.16 | $0.23 | $0.26 | $0.20 | $0.23 | $0.62 | $0.92 | $1.10 |
Discontinued operation | ' | ' | ' | $0 | ($0.07) | $0 | ($0.01) | ($0.03) | ' | ($0.11) | ($0.15) |
Consolidated | $0.21 | $0.14 | $0.12 | $0.16 | $0.16 | $0.26 | $0.19 | $0.20 | $0.62 | $0.81 | $0.96 |
Net Earnings Attributable to II-VI Incorporated: Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | $0.20 | $0.13 | $0.12 | $0.15 | $0.22 | $0.25 | $0.20 | $0.23 | $0.60 | $0.90 | $1.08 |
Discontinued operation | ' | ' | ' | $0 | ($0.07) | $0 | ($0.01) | ($0.03) | ' | ($0.11) | ($0.15) |
Consolidated | $0.20 | $0.13 | $0.12 | $0.15 | $0.16 | $0.25 | $0.19 | $0.20 | $0.60 | $0.80 | $0.94 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Allowance for doubtful accounts | ' | ' | ' | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | $1,479 | $1,536 | $766 | |||
Additions Charged to Expense | 993 | -92 | 940 | |||
Additions Charged to Other Accounts | ' | 179 | [1] | -18 | ||
Deduction from Reserves | -620 | [2] | -144 | [2] | -152 | [2] |
Balance at End of Year | 1,852 | 1,479 | 1,536 | |||
Warranty reserves | ' | ' | ' | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | 1,661 | 1,247 | 1,187 | |||
Additions Charged to Expense | 1,868 | 1,851 | 1,710 | |||
Additions Charged to Other Accounts | 1,173 | [3] | ' | ' | ||
Deduction from Reserves | -1,843 | -1,437 | -1,650 | |||
Balance at End of Year | $2,859 | $1,661 | $1,247 | |||
[1] | Primarily relates to allowance for doubtful accounts from the acquisitions | |||||
[2] | Primarily relates to write-offs of accounts receivable | |||||
[3] | Relates to the warranty reserve acquired from the acquisitions |