Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IIVI | |
Entity Registrant Name | II-VI INC | |
Entity Central Index Key | 820,318 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 61,688,986 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 187,373 | $ 173,634 |
Accounts receivable - less allowance for doubtful accounts of $1,715 at March 31, 2016 and $1,048 at June 30, 2015 | 148,648 | 140,772 |
Inventories | 181,788 | 164,388 |
Deferred income taxes | 13,260 | |
Prepaid and refundable income taxes | 7,650 | 6,881 |
Prepaid and other current assets | 14,927 | 14,033 |
Total Current Assets | 540,386 | 512,968 |
Property, plant & equipment, net | 253,142 | 203,812 |
Goodwill | 239,337 | 195,894 |
Other intangible assets, net | 156,253 | 122,462 |
Investment | 12,567 | 11,914 |
Deferred income taxes | 11,406 | 2,210 |
Other assets | 9,304 | 8,904 |
Total Assets | 1,222,395 | 1,058,164 |
Current Liabilities | ||
Current portion of long-term debt | 20,000 | 20,000 |
Accounts payable | 47,545 | 45,275 |
Accrued compensation and benefits | 45,154 | 39,310 |
Accrued income taxes payable | 7,729 | 9,310 |
Deferred income taxes | 685 | |
Other accrued liabilities | 27,468 | 24,576 |
Total Current Liabilities | 147,896 | 139,156 |
Long-term debt | 242,871 | 155,957 |
Deferred income taxes | 21,195 | 7,105 |
Other liabilities | 32,240 | 26,865 |
Total Liabilities | $ 444,202 | $ 329,083 |
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 - 72,672,701 shares at March 31, 2016; 71,779,704 shares at June 30, 2015 | $ 242,033 | $ 226,609 |
Accumulated other comprehensive income (loss) | (312) | 8,665 |
Retained earnings | 638,445 | 587,302 |
Shareholders' equity excluding treasury stock | 880,166 | 822,576 |
Treasury stock, at cost - 11,069,029 shares at March 31, 2016 and 10,565,209 shares at June 30, 2015 | (101,973) | (93,495) |
Total Shareholders' Equity | 778,193 | 729,081 |
Total Liabilities and Shareholders' Equity | $ 1,222,395 | $ 1,058,164 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,715 | $ 1,048 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 72,672,701 | 71,779,704 |
Treasury stock, shares | 11,069,029 | 10,565,209 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||||
Domestic | $ 74,884 | $ 68,233 | $ 219,812 | $ 198,909 |
International | 130,221 | 114,476 | 365,934 | 346,369 |
Total Revenues | 205,105 | 182,709 | 585,746 | 545,278 |
Costs, Expenses and Other Expense (Income) | ||||
Cost of goods sold | 127,436 | 116,984 | 365,544 | 348,676 |
Internal research and development | 14,946 | 12,874 | 40,252 | 38,662 |
Selling, general and administrative | 43,333 | 35,192 | 117,051 | 104,354 |
Interest expense | 769 | 844 | 2,015 | 3,086 |
Other expense (income), net | 1,257 | 1,534 | (794) | (6,079) |
Total Costs, Expenses and Other Expense (Income) | 187,741 | 167,428 | 524,068 | 488,699 |
Earnings Before Income Taxes | 17,364 | 15,281 | 61,678 | 56,579 |
Income Taxes | 2,426 | 773 | 10,535 | 7,673 |
Net Earnings | $ 14,938 | $ 14,508 | $ 51,143 | $ 48,906 |
Basic Earnings Per Share: | $ 0.24 | $ 0.24 | $ 0.83 | $ 0.80 |
Diluted Earnings Per Share: | $ 0.24 | $ 0.23 | $ 0.81 | $ 0.78 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 14,938 | $ 14,508 | $ 51,143 | $ 48,906 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 4,553 | (7,343) | (9,009) | (11,509) |
Pension adjustment, net of taxes of ($5) and $9 for the three and nine months ended March 31, 2016, respectively, and ($6) and $101 for the three and nine months ended March 31, 2015, respectively | (17) | 22 | 32 | (380) |
Comprehensive income | $ 19,474 | $ 7,187 | $ 42,166 | $ 37,017 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Pension adjustment tax | $ (5) | $ (6) | $ 9 | $ 101 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net earnings | $ 51,143 | $ 48,906 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 32,613 | 30,259 |
Amortization | 9,172 | 8,983 |
Share-based compensation expense | 8,516 | 8,586 |
Impairment of intangible assets | 1,962 | |
Loss on foreign currency remeasurements and transactions | 586 | 1,892 |
Earnings from equity investment | (653) | (707) |
Deferred income taxes | (1,193) | (2,104) |
Excess tax benefits from share-based compensation expense | (96) | (404) |
Increase (decrease) in cash excluding the effect of the purchase of acquisitions from changes in : | ||
Accounts receivable | (4,548) | (5,972) |
Inventories | (8,950) | (5,721) |
Accounts payable | (337) | (3,625) |
Income taxes | (2,628) | 677 |
Other operating net assets | (2,389) | 2,971 |
Net cash provided by operating activities | 81,236 | 85,703 |
Cash Flows from Investing Activities | ||
Additions to property, plant & equipment | (32,743) | (40,163) |
Purchases of businesses, net of cash acquired | (118,657) | |
Proceeds from sale of property, plant & equipment | 92 | 64 |
Net cash used in investing activities | (151,308) | (40,099) |
Cash Flows from Financing Activities | ||
Proceeds from borrowings | 125,200 | 3,000 |
Payments on borrowings | (38,500) | (56,500) |
Purchases of treasury stock | (6,284) | (12,729) |
Payments on holdback arrangements | (2,350) | |
Proceeds from exercises of stock options | 7,444 | 4,058 |
Other financing activities | (1,887) | (610) |
Net cash provided by (used in) financing activities | 85,973 | (65,131) |
Effect of exchange rate changes on cash and cash equivalents | (2,162) | (430) |
Net increase (decrease) in cash and cash equivalents | 13,739 | (19,957) |
Cash and Cash Equivalents at Beginning of Period | 173,634 | 174,660 |
Cash and Cash Equivalents at End of Period | 187,373 | 154,703 |
Cash paid for interest | 1,859 | 3,081 |
Cash paid for income taxes | 13,378 | $ 9,025 |
Non-cash transactions: | ||
Purchase of business utilizing earnout consideration recorded in other current liabilities | 2,000 | |
Purchase of business utilizing earnout consideration recorded in long-term liabilities | $ 4,000 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Beginning Balance at Jun. 30, 2015 | $ 729,081 | $ 226,609 | $ 8,665 | $ 587,302 | $ (93,495) |
Beginning Balance, shares at Jun. 30, 2015 | 71,780 | (10,565) | |||
Shares issued under share-based compensation plans | 7,444 | $ 7,444 | |||
Shares issued under share-based compensation plans (in shares) | 880 | ||||
Shares acquired in satisfaction of minimum tax withholding obligations | (1,981) | $ (1,981) | |||
Shares acquired in satisfaction of minimum tax withholding obligations (in shares) | (110) | ||||
Net earnings | 51,143 | 51,143 | |||
Purchases of treasury stock | (6,284) | $ (6,284) | |||
Purchases of treasury stock, shares | (381) | ||||
Treasury stock under deferred compensation arrangements | $ 213 | $ (213) | |||
Treasury stock under deferred compensation arrangements, (in shares) | 13 | (13) | |||
Foreign currency translation adjustments | (9,009) | (9,009) | |||
Share-based compensation expense | 8,516 | $ 8,516 | |||
Pension adjustment, net of taxes of $9 | 32 | 32 | |||
Tax deficiency from share-based compensation expense | (749) | (749) | |||
Ending Balance at Mar. 31, 2016 | $ 778,193 | $ 242,033 | $ (312) | $ 638,445 | $ (101,973) |
Ending Balance, shares at Mar. 31, 2016 | 72,673 | (11,069) |
Condensed Consolidated Stateme9
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||||
Pension adjustment tax | $ (5) | $ (6) | $ 9 | $ 101 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 . Basis of Presentation The condensed consolidated financial statements of II-VI Incorporated (“II-VI” or the “Company”) for the three and nine months ended March 31, 2016 and 2015 are unaudited. In the opinion of management, all adjustments considered necessary for a fair presentation for the periods presented have been included. All adjustments are of a normal recurring nature unless disclosed otherwise. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. The consolidated results of operations for the three and nine months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full fiscal year. The June 30, 2015 Condensed Consolidated Balance Sheet information was derived from the Company’s audited financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 2 . Recent Accounting Pronouncements Adopted Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This update requires all deferred tax assets and liabilities, and any related valuation allowance, to be classified as noncurrent on the balance sheet. The classification change for all deferred taxes as noncurrent simplifies the Company’s processes as it eliminates the need to separately identify the net current and net noncurrent deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The Company has elected to prospectively adopt the accounting standard in the quarter ended December 31, 2015. The adoption of this standard resulted in the reclassification of $13.3 million from current Deferred income tax assets in the Consolidated Balance Sheet as of December 31, 2015 to noncurrent Deferred income tax assets and $1.0 million from current Deferred income tax liabilities to noncurrent Deferred income tax liabilities. Prior periods in the Company’s Consolidated Financial Statements were not retrospectively adjusted. Pronouncements Currently Under Evaluation In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, and classification in the statement of cash flows. The standard will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires that a lessee recognize leased assets with terms greater than 12 months on the balance sheet for the rights and obligations created by those leases. The standard will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This update simplifies the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new inventory measurement requirements will be effective for the Company’s 2018 fiscal year and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance about whether a cloud computing arrangement includes a software license. The update will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The update allows for the use of either a prospective or retrospective adoption approach. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires entities to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts. The update will be effective for the Company’s 2017 fiscal year. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which affects reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The update will be effective for the Company’s 2017 fiscal year. Early adoption is permitted, including adoption in an interim period. The update allows for the use of either a full retrospective or a modified retrospective adoption approach. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606) 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 allows for the use of either the retrospective or modified retrospective approach of adoption. On July 9, 2015 the FASB approved a one year deferral of the effective date of the update. The update will be effective for the Company’s 2019 fiscal year. We have not yet selected a transition method and are currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3. Acquisitions EpiWorks, Inc. In February 2016, the Company acquired all the outstanding shares of EpiWorks, Inc. (“EpiWorks”) a privately held company based in Illinois. Under the terms of the merger agreement, the consideration consisted of initial cash paid at the acquisition date of $43.0 million, net of cash acquired and a working capital adjustment of $0.2 million. In addition, the agreement provides up to a maximum of $6.0 million of additional cash earnout opportunities based upon EpiWorks achieving certain agreed upon financial and operational targets for capacity, wafer output and gross margin, which if earned would be payable $2.0 million for the achievement of each specific target over the next three years. EpiWorks develops and manufactures compound semiconductor epitaxial wafers for applications in optical components, wireless devices and high-speed communication systems. EpiWorks is a business unit of the Company’s II-VI Laser Solutions operating segment for financial reporting purposes. Due to the timing of the acquisition, the Company is still in the process of completing its fair market valuation, including the valuation of certain tangible and intangible assets, earnout opportunities, as well as deferred income taxes. The following table presents the allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Net cash paid at acquisition $ 42,981 Cash paid for working capital adjustment 163 Fair value of cash earnout arrangement 6,000 Purchase price $ 49,144 The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of EpiWorks within one year from the date of acquisition ($000): Assets Accounts receivable $ 2,121 Inventories 2,435 Prepaid and other assets 68 Property, plant & equipment 9,184 Intangible assets 19,911 Goodwill 24,133 Total assets acquired $ 57,852 Liabilities Accounts payable $ 605 Other accrued liabilities 859 Deferred tax liabilities 7,244 Total liabilities assumed 8,708 Net assets acquired $ 49,144 The goodwill of $24.1 million is included in the II-VI Laser Solutions segment and is attributed to the expected synergies and the assembled workforce of EpiWorks. None of the goodwill is deductible for income tax purposes. The fair value of accounts receivable acquired was $2.1 million with the gross contractual amount being $2.1 million. At the time of acquisition, the Company expected to collect all of the accounts receivable. The amount of revenues and net loss of EpiWorks included in the Company’s Consolidated Statement of Earnings were $1.0 million and $1.2 million, respectively, for the three and nine months ended March 31, 2016. ANADIGICS, Inc. In March 2016, the Company acquired all the outstanding shares of ANADIGICS, Inc. (Nasdaq:ANAD) (“ANADIGICS”) a publicly traded company based in New Jersey. Under the terms of the merger agreement, the consideration consisted of cash paid at the acquisition date of $75.5 million, net of cash acquired of $2.7 million. ANADIGICS has a 6-inch gallium arsenide wafer fabrication capability allowing for the production of high performance lasers and integrated circuits in high volume. In addition, ANADIGICS designs and manufactures innovative radio frequency (RF) solutions for CATV infrastructure, small-cell, WIFI and cellular markets. ANADIGICS is a business unit of the Company’s II-VI Laser Solutions operating segment for financial reporting purposes. Due to the timing of the acquisition, the Company is still in the process of completing its fair market valuation, including the valuation of certain tangible and intangible assets as well as deferred income taxes. The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition as the Company intends to finalize its accounting for the acquisition of ANADIGICS within one year from the date of acquisition ($000): Assets Accounts receivable $ 3,973 Inventories 8,322 Prepaid and other assets 2,347 Property, plant & equipment 41,500 Intangible assets 23,537 Goodwill 21,060 Total assets acquired $ 100,739 Liabilities Accounts payable $ 3,586 Other accrued liabilities 10,726 Deferred tax liabilities 10,915 Total liabilities assumed 25,227 Net assets acquired $ 75,512 The goodwill of $21.1 million is included in the II-VI Laser Solutions segment and is attributed to the expected synergies and the assembled workforce of ANADIGICS. None of the goodwill is deductible for income tax purposes. The fair value of accounts receivable acquired was $4.0 million with the gross contractual amount being $4.0 million. At the time of acquisition, the Company expected to collect all of the accounts receivable. The amount of revenues and net loss of ANADIGICS included in the Company’s Consolidated Statement of Earnings were $3.2 million and $2.9 million, respectively, for the three and nine months ended March 31, 2016. Deferred Income Taxes In connection with above acquisitions, the Company recorded a valuation allowance of $29.0 million against the U.S. net deferred income tax assets as part of the preliminary purchase price allocation. The Company’s policy is to allocate the available sources of future taxable income first to the Company’s existing deferred tax assets before considering acquired deferred tax assets. Pro Forma Information The following unaudited pro forma consolidated results of operations for the three and nine months ended March 31, 2016 and 2015 have been prepared as if the acquisitions of EpiWorks and ANADIGICS had occurred on July 1, 2014, the beginning of the Company’s fiscal year 2015, which is the fiscal year prior to the acquisitions. As a result, certain transaction related expenses of $2.8 million and $3.1 million, respectively, (net of tax) recorded in Selling, general and administrative in the Company’s Condensed Consolidated Statement of Earnings for the three and nine months ended March 31, 2016 were only included in the earliest period presented below ($000 except per share data). Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Net revenues $ 213,711 $ 204,764 $ 624,879 $ 614,927 Net earnings (loss) $ 6,740 $ 7,349 $ 26,126 $ 21,609 Basic earnings per share $ 0.11 $ 0.12 $ 0.43 $ 0.35 Diluted earnings per share $ 0.11 $ 0.12 $ 0.42 $ 0.35 The pro forma results are not necessarily indicative of what actually would have occurred if the transactions had occurred as described above. The pro forma results are not intended to be a projection of future results and do not reflect any cost savings that might be achieved from the combined operations. |
Investment
Investment | 9 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment | Note 4 . Investment The Company has an equity investment of 20.2% in Guangdong Fuxin Electronic Technology (“Fuxin”) based in Guangdong Province, China, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at March 31, 2016 and June 30, 2015 was $12.6 million and $11.9 million, respectively. During each of the three months ended March 31, 2016 and 2015, the Company’s pro-rata share of earnings from this investment was $0.2 million, and was $0.6 million and $0.7 million during the nine months ended March 31, 2016 and 2015, respectively, and was recorded in Other expense (income), net in the Condensed Consolidated Statements of Earnings. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 . Inventories The components of inventories were as follows ($000): March 31, June 30, 2016 2015 Raw materials $ 73,570 $ 71,210 Work in progress 58,903 52,726 Finished goods 49,315 40,452 $ 181,788 $ 164,388 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 6 . Property, Plant and Equipment Property, plant and equipment consists of the following ($000): March 31, June 30, 2016 2015 Land and improvements $ 5,038 $ 4,566 Buildings and improvements 100,300 91,171 Machinery and equipment 422,572 366,560 Construction in progress 31,458 17,749 559,368 480,046 Less accumulated depreciation (306,226 ) (276,234 ) $ 253,142 $ 203,812 During the quarter ended March 31, 2016, the Company’s one year timeframe to sell its manufacturing facility in New Port Ritchey, Florida under U.S. GAAP accounting for assets held for sale expired. The Company reclassified the carrying value of the land and building of approximately $1.2 million from Prepaid and other current assets to Property, plant and equipment in the Condensed Consolidated Balance Sheet at March 31, 2016. The Company cumulatively adjusted suspended depreciation for the period in which the asset was classified as held for sale. The depreciation adjustment was insignificant. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 7 . Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill were as follows ($000): Nine Months Ended March 31, 2016 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 43,578 $ 99,426 $ 52,890 $ 195,894 Goodwill acquired 45,193 - - 45,193 Foreign currency translation 49 (1,799 ) - (1,750 ) Balance-end of period $ 88,820 $ 97,627 $ 52,890 $ 239,337 Note 1 of the Notes to Consolidated Financial Statements in the Company’s most recent Annual Report on Form 10-K describes the significant accounting policies and methods used in the preparation of the Company’s Consolidated Financial Statements. Management has evaluated goodwill for indicators of impairment and has concluded that there are no indicators of impairment as of March 31, 2016. In connection with the acquisitions of EpiWorks and ANADIGICS in February 2016 and March 2016, respectively, the Company recorded the excess purchase price over the net assets of the businesses acquired as goodwill in the accompanying Condensed Consolidated Balance Sheet based on preliminary purchase price allocations. The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of March 31, 2016 and June 30, 2015 were as follows ($000): March 31, 2016 June 30, 2015 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 60,330 $ (21,747 ) $ 38,583 $ 50,520 $ (18,838 ) $ 31,682 Trademarks 15,968 (1,176 ) 14,792 15,869 (1,111 ) 14,758 Customer Lists 134,925 (32,180 ) 102,745 102,489 (26,583 ) 75,906 Other 1,616 (1,483 ) 133 1,572 (1,456 ) 116 Total $ 212,839 $ (56,586 ) $ 156,253 $ 170,450 $ (47,988 ) $ 122,462 In conjunction with the acquisitions of EpiWorks and ANADIGICS, the Company recorded $10.3 million of technology and patents, $32.8 million of customer lists, and $ 0.3 million of trademarks. The intangibles were recorded based on the Company’s preliminary purchase price allocation which is expected to be finalized within one year from the date of acquisition. Amortization expense recorded on the Company’s intangible assets was $3.2 million and $9.2 million for the three and nine months ended March 31, 2016, respectively, and was $3.0 million and $9.0 million for the three and nine months ended March 31, 2015, respectively. The technology and patents are being amortized over a range of 60 to 240 months, with a weighted average remaining life of approximately 106 months. The customer lists are being amortized over a range of approximately 120 to 240 months with a weighted average remaining life of approximately 167 months. The gross carrying amount of trademarks includes $14.2 million of acquired trade names with indefinite lives that are not amortized but tested annually for impairment or more frequently if a triggering event occurs. Included in the gross carrying amount and accumulated amortization of the Company’s intangible assets is the effect of foreign currency translation on that portion of the intangible assets relating to the Company’s German and Chinese subsidiaries. At March 31, 2016, the estimated amortization expense for existing intangible assets for each of the five succeeding fiscal years is as follows ($000): Year Ending June 30, Remaining 2016 $ 3,585 2017 14,340 2018 13,799 2019 13,439 2020 13,045 |
Debt
Debt | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 . Debt The components of debt for the periods indicated were as follows ($000): March 31, June 30, 2016 2015 Line of credit, interest at LIBOR, as defined, plus 1.25% $ 210,200 $ 108,500 Term loan, interest at LIBOR, as defined, plus 1.25% 50,000 65,000 Yen denominated line of credit, interest at LIBOR, as defined, plus 0.625% 2,671 2,457 Total debt 262,871 175,957 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 242,871 $ 155,957 The Company’s Second Amended and Restated Credit Agreement (the “Credit Facility”) provides for a revolving credit facility of $225 million, as well as a $100 million term loan. The term loan is being repaid in consecutive quarterly principal payments on the first business day of each January, April, July and October, with the first payment having commenced on October 1, 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 of September 10, 2018. Amounts borrowed under the revolving credit facility are due and payable on the maturity date. The Credit Facility is unsecured, but is guaranteed by each existing and subsequently acquired or organized wholly-owned domestic subsidiary of the Company. The Company has the option to request an increase to the size of the revolving credit facility in an aggregate additional amount not to exceed $100 million. The Credit Facility has a five-year term through September 10, 2018 and has an interest rate of either a Base Rate Option or a Euro-Rate Option, plus an Applicable Margin, as defined in the agreement governing the Credit Facility. If the Base Rate option is selected for a borrowing, the Applicable Margin is 0.00% to 0.075% and if the Euro-Rate Option is selected for a borrowing, the Applicable Margin is 0.75% to 1.75%. The Applicable Margin is based on the Company’s ratio of consolidated indebtedness to consolidated EBITDA. Additionally, the Credit Facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of March 31, 2016, the Company was in compliance with all financial covenants under its Credit Facility. The Company’s Yen denominated line of credit is a 500 million Yen (approximately $4.5 million) facility. The Yen line of credit was extended in September 2015 through August 2020 on substantially the same terms. The interest rate is equal to LIBOR, as defined in the loan agreement, plus 0.625% to 1.50%. At each of March 31, 2016 and June 30, 2015, the Company had 300 million Yen borrowed. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of March 31, 2016, the Company was in compliance with all financial covenants under its Yen facility. The Company had aggregate availability of $15.4 million and $116.6 million under its lines of credit as of March 31, 2016 and June 30, 2015, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. As of March 31, 2016 and June 30, 2015, total outstanding letters of credit supported by these credit facilities were $1.2 million and $1.5 million, respectively. The weighted average interest rate of total borrowings was 1.6% and 1.8% for the nine months ended March 31, 2016 and 2015, respectively. Remaining annual principal payments under the Company’s existing credit facilities as of March 31, 2016 were as follows: U.S. Dollar Term Yen Line Line of Period Loan of Credit Credit Total Year 1 $ 20,000 $ - $ - $ 20,000 Year 2 20,000 - - 20,000 Year 3 10,000 - 210,200 220,200 Year 4 - - - - Year 5 - 2,671 - 2,671 Total $ 50,000 $ 2,671 $ 210,200 $ 262,871 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 . Income Taxes The Company’s year-to-date effective income tax rate at March 31, 2016 and 2015 was 17.1% and 13.6%, respectively. The variations between the Company’s effective tax rate and the U.S. statutory rate of 35.0% were primarily due to the consolidation of the Company’s foreign operations, which are subject to income taxes at lower statutory rates. U.S. GAAP clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of March 31, 2016 and June 30, 2015, the Company’s gross unrecognized income tax benefit was $4.6 million and $4.0 million, respectively. The Company has classified the uncertain tax positions as noncurrent income tax liabilities, as the amounts are not expected to be paid within one year. If recognized, substantially all of the gross unrecognized tax benefits at March 31, 2016 would impact the effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in the income tax provision on the Condensed Consolidated Statements of Earnings. The amount of accrued interest and penalties included in the $4.6 million and $4.0 million of gross unrecognized income tax benefit at March 31, 2016 and June 30, 2015, respectively, was immaterial. Fiscal years 2013 to 2015 remain open to examination by the United States Internal Revenue Service, fiscal years 2011 to 2015 remain open to examination by certain state jurisdictions, and fiscal years 2008 to 2015 remain open to examination by certain foreign taxing jurisdictions. The Company’s fiscal year 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 2012 and 2013 German income tax returns are currently under examination by the Federal Central Tax Office in Germany. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10 . Earnings Per Share The following table sets forth the computation of earnings per share for the periods indicated. Weighted average shares issuable upon the exercises of stock options and the release of performance and restricted shares are not included in the calculation because they were anti-dilutive totaled approximately 109,000 and 178,000 for the three and nine months ended March 31, 2016, respectively, and 334,000 and 729,000 for the three and nine months ended March 31, 2015, respectively ($000 except per share data): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Net earnings $ 14,938 $ 14,508 $ 51,143 $ 48,906 Divided by: Weighted average shares 61,369 61,082 61,252 61,319 Basic earnings per common share: $ 0.24 $ 0.24 $ 0.83 $ 0.80 Net earnings $ 14,938 $ 14,508 $ 51,143 $ 48,906 Divided by: Weighted average shares 61,369 61,082 61,252 61,319 Dilutive effect of common stock equivalents 1,684 1,431 1,566 1,286 Diluted weighted average common shares 63,053 62,513 62,818 62,605 Diluted earnings per common share: $ 0.24 $ 0.23 $ 0.81 $ 0.78 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 11 . Segment Reporting The Company reports its business segments using the “management approach” model for segment reporting. This means that the Company determines its reportable business segments based on the way the chief operating decision maker organizes business segments within the Company for making operating decisions and assessing performance. The Company reports its financial results in the following three segments: (i) II-VI Laser Solutions, (ii) II-VI Photonics, and (iii) II-VI Performance Products, and the Company’s chief operating decision maker receives and reviews financial information based on these segments. The Company evaluates business segment performance based upon segment operating income, which is defined as earnings before income taxes, interest and other income or expense. The segments are managed separately due to the market, production requirements and facilities unique to each segment. The II-VI Laser Solutions segment is located in the U.S., Singapore, China, Germany, Switzerland, Japan, Belgium, the U.K., Italy, South Korea and the Philippines. II-VI Laser Solutions is directed by the President of II-VI Laser Solutions, while each geographic location is directed by a general manager, and is further divided into production and administrative units that are directed by managers. II-VI Laser Solutions designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used primarily in high-power CO 2 The II-VI Photonics segment is located in the U.S., China, Vietnam, Germany, Japan, the U.K., Italy and Hong Kong. II-VI Photonics is directed by the President of II-VI Photonics and is further divided into production and administrative units that are directed by managers. II-VI Photonics manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other diverse consumer and commercial applications. In addition, the segment also manufactures pump lasers, optical amplifiers and micro-optics for optical amplifiers for both terrestrial and submarine applications within the optical communications market. The II-VI Performance Products segment is located in the U.S., Vietnam, Japan, China, Germany and the Philippines. II-VI Performance Products is directed by the President of II-VI Performance Products, while each geographic location is directed by a general manager. II-VI Performance Products is further divided into production and administrative units that are directed by managers. II-VI Performance Products designs, manufactures and markets infrared optical components and high-precision optical assemblies for military, medical and commercial laser imaging applications. In addition, the segment designs, manufactures and markets unique engineered materials for thermo-electric and silicon carbide applications servicing the semiconductor, military and medical markets. The accounting policies of the segments are the same as those of the Company. The Company’s corporate expenses are allocated to the segments. The Company evaluates segment performance based upon reported segment operating income, which is defined as earnings from continuing operations before income taxes, interest and other income or expense. Inter-segment sales and transfers are eliminated. On February 1, 2016, the Company completed its acquisition of EpiWorks. On March 15, 2016, the Company completed its acquisition of ANADIGICS. See Note 3. Acquisitions. The operating results of these acquisitions have been reflected in the selected financial information of the Company’s II-VI Laser Solutions segment since the respective dates of acquisition. The following tables summarize selected financial information of the Company’s operations by segment ($000): Three Months Ended March 31, 2016 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 73,778 $ 80,603 $ 50,724 $ - $ 205,105 Inter-segment revenues 5,962 3,363 1,800 (11,125 ) - Operating income 5,395 9,543 4,452 - 19,390 Interest expense - - - - (769 ) Other income (expense), net - - - - (1,257 ) Income taxes - - - - (2,426 ) Net earnings - - - - 14,938 Depreciation and amortization 4,192 4,888 5,581 - 14,661 Segment assets 502,754 449,511 270,130 - 1,222,395 Expenditures for property, plant and equipment 7,156 4,160 2,271 - 13,587 Investment - - 12,567 - 12,567 Goodwill 88,820 97,627 52,890 - 239,337 Three Months Ended March 31, 2015 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 73,289 $ 64,303 $ 45,117 $ - $ 182,709 Inter-segment revenues 5,023 2,853 1,924 (9,800 ) - Operating income 14,058 608 2,993 - 17,659 Interest expense - - - - (844 ) Other income (expense), net - - - - (1,534 ) Income taxes - - - - (773 ) Net earnings - - - - 14,508 Depreciation and amortization 3,233 5,124 4,253 - 12,610 Expenditures for property, plant and equipment 2,994 2,098 3,462 - 8,554 Nine Months Ended March 31, 2016 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 215,552 $ 226,762 $ 143,432 $ - $ 585,746 Inter-segment revenues 15,342 9,160 5,738 (30,240 ) - Operating income 28,820 23,282 10,797 - 62,899 Interest expense - - - - (2,015 ) Other income (expense), net - - - - 794 Income taxes - - - - (10,535 ) Net earnings - - - - 51,143 Depreciation and amortization 11,587 14,961 15,237 - 41,785 Expenditures for property, plant and equipment 16,511 10,783 5,449 - 32,743 Nine Months Ended March 31, 2015 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 213,743 $ 188,794 $ 142,741 $ - $ 545,278 Inter-segment revenues 15,585 9,473 6,032 (31,090 ) - Operating income 39,207 3,093 11,286 - 53,586 Interest expense - - - - (3,086 ) Other income (expense), net - - - - 6,079 Income taxes - - - - (7,673 ) Net earnings - - - - 48,906 Depreciation and amortization 10,134 15,875 13,233 - 39,242 Expenditures for property, plant and equipment 22,432 8,067 9,664 - 40,163 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 12. Share-Based Compensation The Board of Directors adopted the II-VI Incorporated Second Amended and Restated 2012 Omnibus Incentive Plan (the “Plan”), which was approved by the shareholders at the Annual Meeting in November 2015. The Plan provides for the grant of performance-based cash incentive awards, non-qualified stock options, stock appreciation rights, restricted share awards, restricted share units, deferred share awards, performance share awards and performance share units to employees, officers and directors of the Company. The maximum number of shares of the Company’s common stock authorized for issuance under the Plan is limited to 4,900,000 shares of common stock, not including any remaining shares forfeited under the predecessor plans that may be rolled into the Plan. The Company records share-based compensation expense for these awards in accordance with U.S. GAAP, which requires the recognition of grant-date fair value of share-based compensation in net earnings and 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 is allocated approximately 15% to cost of goods sold and 85% to selling, general and administrative expense, based on the employee classification of the grantees. Share-based compensation expense for the periods indicated was as follows ($000): Three Months Ended Nine Months Ended March 31, 2016 2015 2016 2015 Stock Options and Cash-Based Stock Appreciation Rights $ 755 $ 1,172 $ 3,892 $ 4,387 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 991 1,109 3,776 3,268 Performance Share Awards and Cash-Based Performance Share Unit Awards 762 1,331 2,438 2,321 $ 2,508 $ 3,612 $ 10,106 $ 9,976 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Fair Value of Financial Instruments | Note 13. Fair Value of Financial Instruments The FASB defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous markets for the asset and liability in an orderly transaction between market participants at the measurement date. The Company estimates fair value of its financial instruments utilizing an established three-level hierarchy in accordance with U.S. GAAP. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: • Level 1 – Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. • Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurements. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. At March 31, 2016, 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. Foreign currency gain related to these contracts was immaterial for the three and nine months ended March 31, 2016. At March 31, 2016, the Company had a contingent earnout arrangement related to the acquisition of EpiWorks recorded at fair value. The EpiWorks earnout arrangement provides up to a maximum of $6.0 million of additional cash payments to the former shareholders based upon EpiWorks achieving certain agreed upon financial and operational targets for capacity, wafer output and gross margin, which if earned would be payable $2.0 million for the achievement of each specific target over the next three years. As of March 31, 2016, the Company has made no earnout payments. Due to the timing of the acquisition, the Company is still in the process of completing its fair market valuation of the earnout arrangement. The Company has recorded the fair value of the earnout arrangement of $2.0 million in Other accrued liabilities and $4.0 million in Other liabilities in the Condensed Consolidated Balance Sheets. The fair value of the earnout arrangement was based on significant inputs not observable in the market and represents a Level 3 measurement as defined by U.S. GAAP. The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis for the periods presented ($000): Fair Value Measurements at March 31, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs March 31, 2016 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 99 $ - $ 99 $ - Contingent earnout arrangement $ 6,000 $ - $ - $ 6,000 Fair Value Measurements at June 30, 2015 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 130 $ - $ 130 $ - The Company’s policy is to report transfers into and out of Levels 1 and 2 of the fair value hierarchy at fair values as of the beginning of the period in which the transfers occur. There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy during the three and nine months ended March 31, 2016. 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 EpiWorks ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2015 $ - Contingent earnout arrangement 6,000 Payments - Changes in fair value - Balance at March 31, 2016 $ 6,000 The fair values of cash and cash equivalents are considered Level 1 among the fair value hierarchy and approximate fair value because of the short-term maturity of those instruments. The Company’s borrowings 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 | 9 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 14. Derivative Instruments The Company, from time to time, purchases foreign currency forward exchange contracts, primarily in Japanese Yen, that permit it to sell specified amounts of these foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. The Company enters into these contracts to limit transactional exposure to changes in currency exchange rates of export sales transactions in which settlement will occur in future periods and which otherwise would expose the Company, on the basis of its aggregate net cash flows in respective currencies, to foreign currency risk. The Company has recorded the fair market value of these contracts in the Company’s Condensed Consolidated Financial Statements. These contracts had a total notional amount of $5.8 million and $10.8 million at March 31, 2016 and June 30, 2015, respectively. As of March 31, 2016, these forward contracts had expiration dates ranging from April 2016 through July 2016, with Japanese Yen denominations individually ranging from 100 million Yen to 200 million Yen. The Company does not account for these contracts as hedges as defined by U.S. GAAP, and records the change in the fair value of these contracts in Other expense (income), net in the Condensed Consolidated Statements of Earnings as they occur. The fair value measurement takes into consideration foreign currency rates and the current creditworthiness of the counterparties to these contracts, as applicable, and is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments and thus represents a Level 2 measurement. These contracts are recorded in Other liabilities in the Company’s Condensed Consolidated Balance Sheets. The change in the fair value of these contracts for each of the three and nine months ended March 31, 2016 and 2015 was insignificant. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2016 | |
Guarantees [Abstract] | |
Commitments and Contingencies | Note 15 . Commitments and Contingencies The Company records a warranty reserve as a charge against earnings based on a percentage of sales utilizing actual warranty claims over the last twelve months. The following table summarizes the change in the carrying value of the Company’s warranty reserve, which is a component of Other accrued liabilities in the Company’s Condensed Consolidated Balance Sheets ($000): Nine Months Ended March 31, 2016 Balance-beginning of period $ 3,251 Payments made during the period (2,423 ) Additional warranty liability recorded during the period 2,492 Warranty reserve acquired through acquisitions 82 Balance-end of period $ 3,402 |
Post-Retirement Benefits
Post-Retirement Benefits | 9 Months Ended |
Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Post-Retirement Benefits | Note 16. Post-Retirement Benefits The Company has a pension plan (the “Swiss Plan”) covering employees of the Zurich, Switzerland subsidiary. The unfunded pension liability of $10.0 million is recorded in Other liabilities in the Condensed Consolidated Balance Sheet at March 31, 2016. Net periodic pension costs associated with the Swiss Plan included the following ($000): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Service cost $ 658 $ 680 $ 1,978 $ 2,033 Interest cost 107 181 321 541 Expected return on plan assets (269 ) (270 ) (810 ) (807 ) Net amortization (22 ) 28 41 (481 ) Net periodic pension costs $ 474 $ 619 $ 1,530 $ 1,286 The Company contributed $0.5 million and $1.5 million to the Swiss Plan during the three and nine months ended March 31, 2016, respectively, and $0.6 million and $1.8 million during the three and nine months ended March 31, 2015, respectively. The Company currently anticipates contributing an additional estimated amount of approximately $0.5 million to the Swiss Plan during the remainder of fiscal year 2016. |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Share Repurchase Program | Note 17 . Share Repurchase Program In August 2014, the Company’s Board of Directors authorized the Company to purchase up to $50 million of its Common Stock through a share repurchase program (the “Program”) that calls for shares to be purchased in the open market or in private transactions from time to time. The Program has no expiration and may be suspended or discontinued at any time. Shares purchased by the Company are retained as treasury stock and available for general corporate purposes. As of March 31, 2016, the Company has purchased 1,318,987 shares of its Common Stock pursuant to the Program for approximately $19.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 18. Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (“AOCI") by component, net of tax, for the nine months ended March 31, 2016 were as follows ($000): Foreign Total Currency Defined Accumulated Translation Benefit Comprehensive Adjustment Pension Plan Income (Loss) AOCI - June 30, 2015 $ 9,466 $ (801 ) $ 8,665 Other comprehensive income (loss) before reclassifications (9,009 ) - (9,009 ) Amounts reclassified from AOCI - 32 32 Net current-period other comprehensive income (loss) (9,009 ) 32 (8,977 ) AOCI - March 31, 2016 $ 457 $ (769 ) $ (312 ) |
Recent Accounting Pronounceme28
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Adopted Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This update requires all deferred tax assets and liabilities, and any related valuation allowance, to be classified as noncurrent on the balance sheet. The classification change for all deferred taxes as noncurrent simplifies the Company’s processes as it eliminates the need to separately identify the net current and net noncurrent deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The Company has elected to prospectively adopt the accounting standard in the quarter ended December 31, 2015. The adoption of this standard resulted in the reclassification of $13.3 million from current Deferred income tax assets in the Consolidated Balance Sheet as of December 31, 2015 to noncurrent Deferred income tax assets and $1.0 million from current Deferred income tax liabilities to noncurrent Deferred income tax liabilities. Prior periods in the Company’s Consolidated Financial Statements were not retrospectively adjusted. Pronouncements Currently Under Evaluation In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, and classification in the statement of cash flows. The standard will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires that a lessee recognize leased assets with terms greater than 12 months on the balance sheet for the rights and obligations created by those leases. The standard will be effective for the Company’s 2019 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This update simplifies the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new inventory measurement requirements will be effective for the Company’s 2018 fiscal year and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance about whether a cloud computing arrangement includes a software license. The update will be effective for the Company’s 2017 fiscal year. Early adoption is permitted. The update allows for the use of either a prospective or retrospective adoption approach. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires entities to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts. The update will be effective for the Company’s 2017 fiscal year. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which affects reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The update will be effective for the Company’s 2017 fiscal year. Early adoption is permitted, including adoption in an interim period. The update allows for the use of either a full retrospective or a modified retrospective adoption approach. The adoption of this ASU is not expected to have a material effect on the Company’s Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606) 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 allows for the use of either the retrospective or modified retrospective approach of adoption. On July 9, 2015 the FASB approved a one year deferral of the effective date of the update. The update will be effective for the Company’s 2019 fiscal year. We have not yet selected a transition method and are currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
EpiWorks | |
Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Net cash paid at acquisition $ 42,981 Cash paid for working capital adjustment 163 Fair value of cash earnout arrangement 6,000 Purchase price $ 49,144 |
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of EpiWorks within one year from the date of acquisition ($000): Assets Accounts receivable $ 2,121 Inventories 2,435 Prepaid and other assets 68 Property, plant & equipment 9,184 Intangible assets 19,911 Goodwill 24,133 Total assets acquired $ 57,852 Liabilities Accounts payable $ 605 Other accrued liabilities 859 Deferred tax liabilities 7,244 Total liabilities assumed 8,708 Net assets acquired $ 49,144 |
ANADIGICS | |
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition as the Company intends to finalize its accounting for the acquisition of ANADIGICS within one year from the date of acquisition ($000): Assets Accounts receivable $ 3,973 Inventories 8,322 Prepaid and other assets 2,347 Property, plant & equipment 41,500 Intangible assets 23,537 Goodwill 21,060 Total assets acquired $ 100,739 Liabilities Accounts payable $ 3,586 Other accrued liabilities 10,726 Deferred tax liabilities 10,915 Total liabilities assumed 25,227 Net assets acquired $ 75,512 |
EpiWorks and ANADIGICS | |
Pro-forma Consolidated Results of Operations | The following unaudited pro forma consolidated results of operations for the three and nine months ended March 31, 2016 and 2015 have been prepared as if the acquisitions of EpiWorks and ANADIGICS had occurred on July 1, 2014, the beginning of the Company’s fiscal year 2015, which is the fiscal year prior to the acquisitions. As a result, certain transaction related expenses of $2.8 million and $3.1 million, respectively, (net of tax) recorded in Selling, general and administrative in the Company’s Condensed Consolidated Statement of Earnings for the three and nine months ended March 31, 2016 were only included in the earliest period presented below ($000 except per share data). Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Net revenues $ 213,711 $ 204,764 $ 624,879 $ 614,927 Net earnings (loss) $ 6,740 $ 7,349 $ 26,126 $ 21,609 Basic earnings per share $ 0.11 $ 0.12 $ 0.43 $ 0.35 Diluted earnings per share $ 0.11 $ 0.12 $ 0.42 $ 0.35 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows ($000): March 31, June 30, 2016 2015 Raw materials $ 73,570 $ 71,210 Work in progress 58,903 52,726 Finished goods 49,315 40,452 $ 181,788 $ 164,388 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following ($000): March 31, June 30, 2016 2015 Land and improvements $ 5,038 $ 4,566 Buildings and improvements 100,300 91,171 Machinery and equipment 422,572 366,560 Construction in progress 31,458 17,749 559,368 480,046 Less accumulated depreciation (306,226 ) (276,234 ) $ 253,142 $ 203,812 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows ($000): Nine Months Ended March 31, 2016 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 43,578 $ 99,426 $ 52,890 $ 195,894 Goodwill acquired 45,193 - - 45,193 Foreign currency translation 49 (1,799 ) - (1,750 ) Balance-end of period $ 88,820 $ 97,627 $ 52,890 $ 239,337 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill | The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of March 31, 2016 and June 30, 2015 were as follows ($000): March 31, 2016 June 30, 2015 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 60,330 $ (21,747 ) $ 38,583 $ 50,520 $ (18,838 ) $ 31,682 Trademarks 15,968 (1,176 ) 14,792 15,869 (1,111 ) 14,758 Customer Lists 134,925 (32,180 ) 102,745 102,489 (26,583 ) 75,906 Other 1,616 (1,483 ) 133 1,572 (1,456 ) 116 Total $ 212,839 $ (56,586 ) $ 156,253 $ 170,450 $ (47,988 ) $ 122,462 |
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Fiscal Years | At March 31, 2016, the estimated amortization expense for existing intangible assets for each of the five succeeding fiscal years is as follows ($000): Year Ending June 30, Remaining 2016 $ 3,585 2017 14,340 2018 13,799 2019 13,439 2020 13,045 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of debt for the periods indicated were as follows ($000): March 31, June 30, 2016 2015 Line of credit, interest at LIBOR, as defined, plus 1.25% $ 210,200 $ 108,500 Term loan, interest at LIBOR, as defined, plus 1.25% 50,000 65,000 Yen denominated line of credit, interest at LIBOR, as defined, plus 0.625% 2,671 2,457 Total debt 262,871 175,957 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 242,871 $ 155,957 |
Remaining Annual Amounts of Principal Payments | Remaining annual principal payments under the Company’s existing credit facilities as of March 31, 2016 were as follows: U.S. Dollar Term Yen Line Line of Period Loan of Credit Credit Total Year 1 $ 20,000 $ - $ - $ 20,000 Year 2 20,000 - - 20,000 Year 3 10,000 - 210,200 220,200 Year 4 - - - - Year 5 - 2,671 - 2,671 Total $ 50,000 $ 2,671 $ 210,200 $ 262,871 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
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 exercises of stock options and the release of performance and restricted shares are not included in the calculation because they were anti-dilutive totaled approximately 109,000 and 178,000 for the three and nine months ended March 31, 2016, respectively, and 334,000 and 729,000 for the three and nine months ended March 31, 2015, respectively ($000 except per share data): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Net earnings $ 14,938 $ 14,508 $ 51,143 $ 48,906 Divided by: Weighted average shares 61,369 61,082 61,252 61,319 Basic earnings per common share: $ 0.24 $ 0.24 $ 0.83 $ 0.80 Net earnings $ 14,938 $ 14,508 $ 51,143 $ 48,906 Divided by: Weighted average shares 61,369 61,082 61,252 61,319 Dilutive effect of common stock equivalents 1,684 1,431 1,566 1,286 Diluted weighted average common shares 63,053 62,513 62,818 62,605 Diluted earnings per common share: $ 0.24 $ 0.23 $ 0.81 $ 0.78 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial Information of Company's Operation by Segment | The following tables summarize selected financial information of the Company’s operations by segment ($000): Three Months Ended March 31, 2016 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 73,778 $ 80,603 $ 50,724 $ - $ 205,105 Inter-segment revenues 5,962 3,363 1,800 (11,125 ) - Operating income 5,395 9,543 4,452 - 19,390 Interest expense - - - - (769 ) Other income (expense), net - - - - (1,257 ) Income taxes - - - - (2,426 ) Net earnings - - - - 14,938 Depreciation and amortization 4,192 4,888 5,581 - 14,661 Segment assets 502,754 449,511 270,130 - 1,222,395 Expenditures for property, plant and equipment 7,156 4,160 2,271 - 13,587 Investment - - 12,567 - 12,567 Goodwill 88,820 97,627 52,890 - 239,337 Three Months Ended March 31, 2015 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 73,289 $ 64,303 $ 45,117 $ - $ 182,709 Inter-segment revenues 5,023 2,853 1,924 (9,800 ) - Operating income 14,058 608 2,993 - 17,659 Interest expense - - - - (844 ) Other income (expense), net - - - - (1,534 ) Income taxes - - - - (773 ) Net earnings - - - - 14,508 Depreciation and amortization 3,233 5,124 4,253 - 12,610 Expenditures for property, plant and equipment 2,994 2,098 3,462 - 8,554 Nine Months Ended March 31, 2016 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 215,552 $ 226,762 $ 143,432 $ - $ 585,746 Inter-segment revenues 15,342 9,160 5,738 (30,240 ) - Operating income 28,820 23,282 10,797 - 62,899 Interest expense - - - - (2,015 ) Other income (expense), net - - - - 794 Income taxes - - - - (10,535 ) Net earnings - - - - 51,143 Depreciation and amortization 11,587 14,961 15,237 - 41,785 Expenditures for property, plant and equipment 16,511 10,783 5,449 - 32,743 Nine Months Ended March 31, 2015 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 213,743 $ 188,794 $ 142,741 $ - $ 545,278 Inter-segment revenues 15,585 9,473 6,032 (31,090 ) - Operating income 39,207 3,093 11,286 - 53,586 Interest expense - - - - (3,086 ) Other income (expense), net - - - - 6,079 Income taxes - - - - (7,673 ) Net earnings - - - - 48,906 Depreciation and amortization 10,134 15,875 13,233 - 39,242 Expenditures for property, plant and equipment 22,432 8,067 9,664 - 40,163 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Expense by Award Type | Share-based compensation expense is allocated approximately 15% to cost of goods sold and 85% to selling, general and administrative expense, based on the employee classification of the grantees. Share-based compensation expense for the periods indicated was as follows ($000): Three Months Ended Nine Months Ended March 31, 2016 2015 2016 2015 Stock Options and Cash-Based Stock Appreciation Rights $ 755 $ 1,172 $ 3,892 $ 4,387 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 991 1,109 3,776 3,268 Performance Share Awards and Cash-Based Performance Share Unit Awards 762 1,331 2,438 2,321 $ 2,508 $ 3,612 $ 10,106 $ 9,976 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis | The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis for the periods presented ($000): Fair Value Measurements at March 31, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs March 31, 2016 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 99 $ - $ 99 $ - Contingent earnout arrangement $ 6,000 $ - $ - $ 6,000 Fair Value Measurements at June 30, 2015 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 130 $ - $ 130 $ - |
EpiWorks | |
Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangement Related to Acquisition | The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s level 3 contingent earnout arrangement related to the acquisition of EpiWorks ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2015 $ - Contingent earnout arrangement 6,000 Payments - Changes in fair value - Balance at March 31, 2016 $ 6,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Guarantees [Abstract] | |
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, which is a component of Other accrued liabilities in the Company’s Condensed Consolidated Balance Sheets ($000): Nine Months Ended March 31, 2016 Balance-beginning of period $ 3,251 Payments made during the period (2,423 ) Additional warranty liability recorded during the period 2,492 Warranty reserve acquired through acquisitions 82 Balance-end of period $ 3,402 |
Post-Retirement Benefits (Table
Post-Retirement Benefits (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Pension Costs | Net periodic pension costs associated with the Swiss Plan included the following ($000): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Service cost $ 658 $ 680 $ 1,978 $ 2,033 Interest cost 107 181 321 541 Expected return on plan assets (269 ) (270 ) (810 ) (807 ) Net amortization (22 ) 28 41 (481 ) Net periodic pension costs $ 474 $ 619 $ 1,530 $ 1,286 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax | The changes in accumulated other comprehensive income (“AOCI") by component, net of tax, for the nine months ended March 31, 2016 were as follows ($000): Foreign Total Currency Defined Accumulated Translation Benefit Comprehensive Adjustment Pension Plan Income (Loss) AOCI - June 30, 2015 $ 9,466 $ (801 ) $ 8,665 Other comprehensive income (loss) before reclassifications (9,009 ) - (9,009 ) Amounts reclassified from AOCI - 32 32 Net current-period other comprehensive income (loss) (9,009 ) 32 (8,977 ) AOCI - March 31, 2016 $ 457 $ (769 ) $ (312 ) |
Recent Accounting Pronounceme41
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Reclassification of deferred tax assets | $ 11,406 | $ 2,210 | |
Reclassification of deferred tax liability | $ 21,195 | $ 7,105 | |
Adopted Pronouncements | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Reclassification of deferred tax assets | $ 13,300 | ||
Reclassification of deferred tax liability | $ 1,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Feb. 29, 2016 | Mar. 31, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | |||||
Net cash paid at acquisition | $ 118,657 | ||||
Goodwill | $ 239,337 | $ 239,337 | 239,337 | $ 195,894 | |
EpiWorks | |||||
Business Acquisition [Line Items] | |||||
Net cash paid at acquisition | $ 42,981 | ||||
Payment of additional amount for working capital adjustment | 163 | ||||
Goodwill | 24,133 | ||||
Fair value of accounts receivable acquired | 2,100 | ||||
Fair value of accounts receivable gross contractual amount | 2,100 | ||||
Business acquisition, revenue of acquired entity | 1,000 | ||||
Business acquisition, loss of acquired entity | 1,200 | ||||
EpiWorks | Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisitions, contingent consideration | 6,000 | ||||
EpiWorks | Upon Achievement of Financial and Operational Targets for Capacity, Wafer Output and Gross Margin in year one [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisitions, contingent consideration, current | 2,000 | ||||
EpiWorks | Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin in year two [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisitions, contingent consideration, non current | 2,000 | ||||
EpiWorks | Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin in year three [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisitions, contingent consideration, non current | $ 2,000 | ||||
ANADIGICS | |||||
Business Acquisition [Line Items] | |||||
Net cash paid at acquisition | 75,500 | ||||
Goodwill | 21,060 | 21,060 | 21,060 | ||
Fair value of accounts receivable acquired | 4,000 | 4,000 | 4,000 | ||
Fair value of accounts receivable gross contractual amount | 4,000 | 4,000 | 4,000 | ||
Business acquisition, revenue of acquired entity | 3,200 | ||||
Business acquisition, loss of acquired entity | 2,900 | ||||
Business acquisition, cash acquired | 2,700 | ||||
Deferred income taxes, valuation allowance | $ 29,000 | 29,000 | 29,000 | ||
EpiWorks and ANADIGICS | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, transaction costs | $ 2,800 | $ 3,100 |
Purchase Price of the Assets Ac
Purchase Price of the Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Feb. 29, 2016 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net cash paid at acquisition | $ 118,657 | |
EpiWorks | ||
Business Acquisition [Line Items] | ||
Net cash paid at acquisition | $ 42,981 | |
Cash paid for working capital adjustment | 163 | |
Fair value of cash earnout arrangement | 6,000 | |
Purchase price | $ 49,144 |
Allocation of Purchase Price of
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail)) - USD ($) $ in Thousands | Mar. 31, 2016 | Feb. 29, 2016 | Jun. 30, 2015 |
Assets | |||
Goodwill | $ 239,337 | $ 195,894 | |
EpiWorks | |||
Assets | |||
Accounts receivable | $ 2,121 | ||
Inventories | 2,435 | ||
Prepaid and other assets | 68 | ||
Property, plant & equipment | 9,184 | ||
Intangible assets | 19,911 | ||
Goodwill | 24,133 | ||
Total assets acquired | 57,852 | ||
Liabilities | |||
Accounts payable | 605 | ||
Other accrued liabilities | 859 | ||
Deferred tax liabilities | 7,244 | ||
Total liabilities assumed | 8,708 | ||
Net assets acquired | $ 49,144 | ||
ANADIGICS | |||
Assets | |||
Accounts receivable | 3,973 | ||
Inventories | 8,322 | ||
Prepaid and other assets | 2,347 | ||
Property, plant & equipment | 41,500 | ||
Intangible assets | 23,537 | ||
Goodwill | 21,060 | ||
Total assets acquired | 100,739 | ||
Liabilities | |||
Accounts payable | 3,586 | ||
Other accrued liabilities | 10,726 | ||
Deferred tax liabilities | 10,915 | ||
Total liabilities assumed | 25,227 | ||
Net assets acquired | $ 75,512 |
Pro-forma Consolidated Results
Pro-forma Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition Pro Forma Information [Abstract] | ||||
Net revenues | $ 213,711 | $ 204,764 | $ 624,879 | $ 614,927 |
Net earnings (loss) | $ 6,740 | $ 7,349 | $ 26,126 | $ 21,609 |
Basic earnings per share | $ 0.11 | $ 0.12 | $ 0.43 | $ 0.35 |
Diluted earnings per share | $ 0.11 | $ 0.12 | $ 0.42 | $ 0.35 |
Investment - Additional Informa
Investment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Total carrying value of investment | $ 12,567 | $ 12,567 | $ 11,914 | ||
Pro-rata share of earnings | $ 200 | $ 200 | $ 653 | $ 707 | |
Guangdong Fuxin Electronic Technology | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 20.20% | 20.20% |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 73,570 | $ 71,210 |
Work in progress | 58,903 | 52,726 |
Finished goods | 49,315 | 40,452 |
Inventories, Total | $ 181,788 | $ 164,388 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Property Plant And Equipment [Abstract] | ||
Land and improvements | $ 5,038 | $ 4,566 |
Buildings and improvements | 100,300 | 91,171 |
Machinery and equipment | 422,572 | 366,560 |
Construction in progress | 31,458 | 17,749 |
Property, Plant and Equipment, gross | 559,368 | 480,046 |
Less accumulated depreciation | (306,226) | (276,234) |
Property, Plant and Equipment, net | $ 253,142 | $ 203,812 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) $ in Millions | Mar. 31, 2016USD ($) |
Property Plant And Equipment [Abstract] | |
Reclassification carrying value of land and building | $ 1.2 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill [Line Items] | |
Balance-beginning of period | $ 195,894 |
Goodwill acquired | 45,193 |
Foreign currency translation | (1,750) |
Balance-end of period | 239,337 |
II-VI Laser Solutions | |
Goodwill [Line Items] | |
Balance-beginning of period | 43,578 |
Goodwill acquired | 45,193 |
Foreign currency translation | 49 |
Balance-end of period | 88,820 |
II-VI Photonics | |
Goodwill [Line Items] | |
Balance-beginning of period | 99,426 |
Foreign currency translation | (1,799) |
Balance-end of period | 97,627 |
II- VI Performance Products | |
Goodwill [Line Items] | |
Balance-beginning of period | 52,890 |
Balance-end of period | $ 52,890 |
Gross Carrying Amount and Accum
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 212,839 | $ 170,450 |
Accumulated Amortization | (56,586) | (47,988) |
Net Book Value | 156,253 | 122,462 |
Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,968 | 15,869 |
Accumulated Amortization | (1,176) | (1,111) |
Net Book Value | 14,792 | 14,758 |
Technology and Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 60,330 | 50,520 |
Accumulated Amortization | (21,747) | (18,838) |
Net Book Value | 38,583 | 31,682 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 134,925 | 102,489 |
Accumulated Amortization | (32,180) | (26,583) |
Net Book Value | 102,745 | 75,906 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,616 | 1,572 |
Accumulated Amortization | (1,483) | (1,456) |
Net Book Value | $ 133 | $ 116 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill And Other Intangible Assets [Line Items] | ||||
Amortization expense recorded on intangible assets | $ 3.2 | $ 3 | $ 9.2 | $ 9 |
Carrying amount of indefinite trade names acquired | 14.2 | $ 14.2 | ||
Technology and Patents | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Remaining amortization period of patents and customer lists, in months | 106 months | |||
Technology and Patents | Minimum | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Amortization period of finite lived intangible assets, in months | 60 months | |||
Technology and Patents | Maximum [Member] | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Amortization period of finite lived intangible assets, in months | 240 months | |||
Technology and Patents | EpiWorks and ANADIGICS | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Identifiable intangibles assets recorded in connection with acquisitions | 10.3 | $ 10.3 | ||
Customer Lists | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Remaining amortization period of patents and customer lists, in months | 167 months | |||
Customer Lists | Minimum | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Amortization period of finite lived intangible assets, in months | 120 months | |||
Customer Lists | Maximum [Member] | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Amortization period of finite lived intangible assets, in months | 240 months | |||
Customer Lists | EpiWorks and ANADIGICS | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Identifiable intangibles assets recorded in connection with acquisitions | 32.8 | $ 32.8 | ||
Trademarks | EpiWorks and ANADIGICS | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Identifiable intangibles assets recorded in connection with acquisitions | $ 0.3 | $ 0.3 |
Estimated Amortization Expense
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Fiscal Years (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remaining 2,016 | $ 3,585 |
2,017 | 14,340 |
2,018 | 13,799 |
2,019 | 13,439 |
2,020 | $ 13,045 |
Components of Debt (Detail)
Components of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Line Of Credit Facility [Line Items] | ||
Total debt | $ 262,871 | $ 175,957 |
Current portion of long-term debt | (20,000) | (20,000) |
Long-term debt, less current portion | 242,871 | 155,957 |
Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt | 210,200 | 108,500 |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Total debt | 50,000 | 65,000 |
Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt | $ 2,671 | $ 2,457 |
Components of Debt (Parenthetic
Components of Debt (Parenthetical) (Detail) - London Interbank Offered Rate (LIBOR) | 9 Months Ended |
Mar. 31, 2016 | |
Line of credit | |
Line Of Credit Facility [Line Items] | |
Debt instrument, rate added on variable rate | 1.25% |
Term Loans | |
Line Of Credit Facility [Line Items] | |
Debt instrument, rate added on variable rate | 1.25% |
Yen denominated line of credit | |
Line Of Credit Facility [Line Items] | |
Debt instrument, rate added on variable rate | 0.625% |
Debt - Additional Information (
Debt - Additional Information (Detail) | 9 Months Ended | ||||
Mar. 31, 2016USD ($) | Mar. 31, 2016JPY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015JPY (¥) | Mar. 31, 2015 | |
Line Of Credit Facility [Line Items] | |||||
Available credit under lines of credit | $ 15,400,000 | $ 116,600,000 | |||
Total outstanding letters of credit | $ 1,200,000 | $ 1,500,000 | |||
Weighted average interest rate of total borrowings | 1.60% | 1.60% | 1.80% | ||
Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 225,000,000 | ||||
Credit facility, term | 5 years | ||||
Debt instrument, maturity date | Sep. 10, 2018 | ||||
Term Loans | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | ||||
Term loan, quarterly principal Payment | $ 5,000,000 | ||||
Term loan, maturity date | Sep. 10, 2018 | ||||
Term loan, first quarterly principal payment commencement date | Oct. 1, 2013 | ||||
Yen denominated line of credit | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 4,500,000 | ¥ 500,000,000 | |||
Debt instrument, month and year of extend maturity | 2020-08 | ||||
Yen Loan | |||||
Line Of Credit Facility [Line Items] | |||||
Amount borrowed | ¥ | ¥ 300,000,000 | ¥ 300,000,000 | |||
London Interbank Offered Rate (LIBOR) | Term Loans | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 1.25% | ||||
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 0.625% | ||||
Minimum | Base Rate Option | Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 0.00% | ||||
Minimum | Euro Rate Option | Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 0.75% | ||||
Minimum | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 0.625% | ||||
Maximum [Member] | Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Credit facility, optional additional borrowing amount | $ 100,000,000 | ||||
Maximum [Member] | Base Rate Option | Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 0.075% | ||||
Maximum [Member] | Euro Rate Option | Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 1.75% | ||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, rate added on variable rate | 1.50% |
Remaining Annual Amounts of Pri
Remaining Annual Amounts of Principal Payments of Credit Facility (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Line Of Credit Facility [Line Items] | ||
Year 1 | $ 20,000 | |
Year 2 | 20,000 | |
Year 3 | 220,200 | |
Year 5 | 2,671 | |
Total debt | 262,871 | $ 175,957 |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Year 1 | 20,000 | |
Year 2 | 20,000 | |
Year 3 | 10,000 | |
Total debt | 50,000 | 65,000 |
Yen Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
Year 5 | 2,671 | |
Total debt | 2,671 | 2,457 |
U.S. Dollar Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
Year 3 | 210,200 | |
Total debt | $ 210,200 | $ 108,500 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 17.10% | 13.60% | |
U.S. statutory rate | 35.00% | ||
Unrecognized tax benefits that would impact effective tax rate | $ 4.6 | $ 4 | |
United States Internal Revenue Service | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,013 | ||
United States Internal Revenue Service | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,015 | ||
California's Franchise Tax Board | Tax Year 2011 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,011 | ||
California's Franchise Tax Board | Tax Year 2012 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,012 | ||
Federal Ministry of Finance, Germany | Tax Year 2012 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,012 | ||
Federal Ministry of Finance, Germany | Tax Year 2013 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,013 | ||
State Jurisdictions | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,011 | ||
State Jurisdictions | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,015 | ||
Foreign Taxing Jurisdictions | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,008 | ||
Foreign Taxing Jurisdictions | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,015 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Weighted Average | ||||
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 | 109,000 | 334,000 | 178,000 | 729,000 |
Computation of Earnings Per Sha
Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 14,938 | $ 14,508 | $ 51,143 | $ 48,906 |
Weighted average shares | 61,369 | 61,082 | 61,252 | 61,319 |
Basic earnings per common share: | $ 0.24 | $ 0.24 | $ 0.83 | $ 0.80 |
Dilutive effect of common stock equivalents | 1,684 | 1,431 | 1,566 | 1,286 |
Diluted weighted average common shares | 63,053 | 62,513 | 62,818 | 62,605 |
Diluted earnings per common share: | $ 0.24 | $ 0.23 | $ 0.81 | $ 0.78 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Financial Information of Compan
Financial Information of Company's Operation by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Revenues | $ 205,105 | $ 182,709 | $ 585,746 | $ 545,278 | |
Operating income | 19,390 | 17,659 | 62,899 | 53,586 | |
Interest expense | (769) | (844) | (2,015) | (3,086) | |
Other income (expense), net | (1,257) | (1,534) | 794 | 6,079 | |
Income taxes | (2,426) | (773) | (10,535) | (7,673) | |
Net earnings | 14,938 | 14,508 | 51,143 | 48,906 | |
Depreciation and amortization | 14,661 | 12,610 | 41,785 | 39,242 | |
Segment assets | 1,222,395 | 1,222,395 | $ 1,058,164 | ||
Expenditures for property, plant and equipment | 13,587 | 8,554 | 32,743 | 40,163 | |
Investment | 12,567 | 12,567 | 11,914 | ||
Goodwill | 239,337 | 239,337 | 195,894 | ||
Eliminations | |||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Inter-segment revenues | (11,125) | (9,800) | (30,240) | (31,090) | |
II-VI Laser Solutions | |||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Goodwill | 88,820 | 88,820 | 43,578 | ||
II-VI Laser Solutions | Operating Segments | |||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Revenues | 73,778 | 73,289 | 215,552 | 213,743 | |
Inter-segment revenues | 5,962 | 5,023 | 15,342 | 15,585 | |
Operating income | 5,395 | 14,058 | 28,820 | 39,207 | |
Depreciation and amortization | 4,192 | 3,233 | 11,587 | 10,134 | |
Segment assets | 502,754 | 502,754 | |||
Expenditures for property, plant and equipment | 7,156 | 2,994 | 16,511 | 22,432 | |
Goodwill | 88,820 | 88,820 | |||
II-VI Photonics | |||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Goodwill | 97,627 | 97,627 | 99,426 | ||
II-VI Photonics | Operating Segments | |||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Revenues | 80,603 | 64,303 | 226,762 | 188,794 | |
Inter-segment revenues | 3,363 | 2,853 | 9,160 | 9,473 | |
Operating income | 9,543 | 608 | 23,282 | 3,093 | |
Depreciation and amortization | 4,888 | 5,124 | 14,961 | 15,875 | |
Segment assets | 449,511 | 449,511 | |||
Expenditures for property, plant and equipment | 4,160 | 2,098 | 10,783 | 8,067 | |
Goodwill | 97,627 | 97,627 | |||
II- VI Performance Products | |||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Goodwill | 52,890 | 52,890 | $ 52,890 | ||
II- VI Performance Products | Operating Segments | |||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||
Revenues | 50,724 | 45,117 | 143,432 | 142,741 | |
Inter-segment revenues | 1,800 | 1,924 | 5,738 | 6,032 | |
Operating income | 4,452 | 2,993 | 10,797 | 11,286 | |
Depreciation and amortization | 5,581 | 4,253 | 15,237 | 13,233 | |
Segment assets | 270,130 | 270,130 | |||
Expenditures for property, plant and equipment | 2,271 | $ 3,462 | 5,449 | $ 9,664 | |
Investment | 12,567 | 12,567 | |||
Goodwill | $ 52,890 | $ 52,890 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2016shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of share based compensation expense allocated to cost of sales | 15.00% |
Percentage of share based compensation expense allocated to selling, general and administrative expense | 85.00% |
Omnibus Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock authorized for issuance under the Plan | 4,900,000 |
Share-Based Compensation Expens
Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation expense | $ 2,508 | $ 3,612 | $ 10,106 | $ 9,976 |
Stock Options and Cash-Based Stock Appreciation Rights | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation expense | 755 | 1,172 | 3,892 | 4,387 |
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 | 991 | 1,109 | 3,776 | 3,268 |
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 | $ 762 | $ 1,331 | $ 2,438 | $ 2,321 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Additional Information (Detail) - EpiWorks - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Feb. 29, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Earnout payments | $ 0 | |
Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin [Member] | Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business acquisitions, contingent consideration | $ 6,000,000 | |
Upon Achievement of Financial and Operational Targets for Capacity, Wafer Output and Gross Margin in year one [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business acquisitions, contingent consideration, current | 2,000,000 | |
Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin in year two [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business acquisitions, contingent consideration, non current | 2,000,000 | |
Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin in year three [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business acquisitions, contingent consideration, non current | $ 2,000,000 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business acquisitions, contingent consideration | 6,000,000 | |
Fair Value, Inputs, Level 3 | Other Accrued Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business acquisitions, contingent consideration, current | 2,000,000 | |
Fair Value, Inputs, Level 3 | Other Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business acquisitions, contingent consideration, non current | $ 4,000,000 |
Summary by Level of Fair Value
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Liabilities: | ||
Foreign currency forward contracts | $ 99 | |
Business acquisitions, contingent consideration | 6,000 | |
Assets: | ||
Foreign currency forward contracts | $ 130 | |
Fair Value, Inputs, Level 2 | ||
Liabilities: | ||
Foreign currency forward contracts | 99 | |
Assets: | ||
Foreign currency forward contracts | $ 130 | |
Fair Value, Inputs, Level 3 | ||
Liabilities: | ||
Business acquisitions, contingent consideration | $ 6,000 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangement Related to Acquisition (Detail) - Fair Value, Inputs, Level 3 - EpiWorks $ in Thousands | 9 Months Ended |
Mar. 31, 2016USD ($) | |
Business Acquisition Contingent Consideration [Line Items] | |
Contingent earnout arrangement | $ 6,000 |
Balance - end of period | $ 6,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 9 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2016JPY (¥) | Jun. 30, 2015USD ($) | |
Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2016-04 | ||
Maximum [Member] | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2016-07 | ||
Foreign Currency Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | $ | $ 5,800,000 | $ 10,800,000 | |
Foreign Currency Forward Exchange Contracts | Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 100,000,000 | ||
Foreign Currency Forward Exchange Contracts | Maximum [Member] | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 200,000,000 |
Change in Carrying Value of Com
Change in Carrying Value of Company's Warranty Reserve (Detail) $ in Thousands | 9 Months Ended |
Mar. 31, 2016USD ($) | |
Guarantees [Abstract] | |
Balance-beginning of period | $ 3,251 |
Payments made during the period | (2,423) |
Additional warranty liability recorded during the period | 2,492 |
Warranty reserve acquired through acquisitions | 82 |
Balance-end of period | $ 3,402 |
Post-Retirement Benefits - Addi
Post-Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to the Compensation Plan by the employer | $ 0.5 | $ 0.6 | $ 1.5 | $ 1.8 |
Contributions to the Compensation Plan by the employer in remainder of fiscal year 2016 | 0.5 | |||
Unfunded Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension liability | $ 10 | $ 10 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 658 | $ 680 | $ 1,978 | $ 2,033 |
Interest cost | 107 | 181 | 321 | 541 |
Expected return on plan assets | (269) | (270) | (810) | (807) |
Net amortization | (22) | 28 | 41 | (481) |
Net periodic pension costs | $ 474 | $ 619 | $ 1,530 | $ 1,286 |
Share Repurchase Program (Detai
Share Repurchase Program (Detail) - USD ($) | 9 Months Ended | 20 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2016 | Aug. 31, 2014 | |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 50,000,000 | ||
Purchase of common stock, shares | 1,318,987 | ||
Purchase of Treasury Stock | $ 6,284,000 | $ 19,000,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax (Detail) $ in Thousands | 9 Months Ended |
Mar. 31, 2016USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
AOCI, net of tax Beginning balance | $ 8,665 |
Other comprehensive income (loss) before reclassifications | (9,009) |
Amounts reclassified from AOCI | 32 |
Net current-period other comprehensive income (loss) | (8,977) |
AOCI, net of tax Ending balance | (312) |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
AOCI, net of tax Beginning balance | 9,466 |
Other comprehensive income (loss) before reclassifications | (9,009) |
Net current-period other comprehensive income (loss) | (9,009) |
AOCI, net of tax Ending balance | 457 |
Defined Benefit Pension Plan | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
AOCI, net of tax Beginning balance | (801) |
Amounts reclassified from AOCI | 32 |
Net current-period other comprehensive income (loss) | 32 |
AOCI, net of tax Ending balance | $ (769) |