Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 62,279,166 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 220,096 | $ 218,445 |
Accounts receivable - less allowance for doubtful accounts of $1,740 at September 30, 2016 and $2,016 at June 30, 2016 | 155,954 | 164,817 |
Inventories | 182,647 | 175,133 |
Prepaid and refundable income taxes | 5,807 | 6,535 |
Prepaid and other current assets | 20,060 | 18,033 |
Total Current Assets | 584,564 | 582,963 |
Property, plant & equipment, net | 260,912 | 242,857 |
Goodwill | 233,604 | 233,755 |
Other intangible assets, net | 121,444 | 124,590 |
Investment | 11,684 | 11,354 |
Deferred income taxes | 6,568 | 7,848 |
Other assets | 9,711 | 8,614 |
Total Assets | 1,228,487 | 1,211,981 |
Current Liabilities | ||
Current portion of long-term debt | 20,000 | 20,000 |
Accounts payable | 62,138 | 53,796 |
Accrued compensation and benefits | 39,162 | 59,012 |
Accrued income taxes payable | 11,382 | 12,588 |
Other accrued liabilities | 21,544 | 25,846 |
Total Current Liabilities | 154,226 | 171,242 |
Long-term debt | 228,206 | 215,307 |
Deferred income taxes | 11,734 | 11,103 |
Other liabilities | 33,764 | 31,991 |
Total Liabilities | 427,930 | 429,643 |
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 - 73,250,344 shares at September 30, 2016; 72,840,257 shares at June 30, 2016 | 249,447 | 243,812 |
Accumulated other comprehensive loss | (14,711) | (14,017) |
Retained earnings | 669,082 | 652,788 |
Shareholders' equity excluding treasury stock | 903,818 | 882,583 |
Treasury stock, at cost - 11,053,874 shares at September 30, 2016 and 10,965,925 shares at June 30, 2016 | (103,261) | (100,245) |
Total Shareholders' Equity | 800,557 | 782,338 |
Total Liabilities and Shareholders' Equity | $ 1,228,487 | $ 1,211,981 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,740 | $ 2,016 |
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 | 73,250,344 | 72,840,257 |
Treasury stock, shares | 11,053,874 | 10,965,925 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||
Domestic | $ 69,318 | $ 70,751 |
International | 152,202 | 118,456 |
Total Revenues | 221,520 | 189,207 |
Costs, Expenses and Other Expense (Income) | ||
Cost of goods sold | 133,918 | 118,018 |
Internal research and development | 21,832 | 13,151 |
Selling, general and administrative | 42,079 | 36,310 |
Interest expense | 1,246 | 649 |
Other expense (income), net | (1,402) | (1,057) |
Total Costs, Expenses and Other Expense (Income) | 197,673 | 167,071 |
Earnings Before Income Taxes | 23,847 | 22,136 |
Income Taxes | 7,553 | 4,922 |
Net Earnings | $ 16,294 | $ 17,214 |
Basic Earnings Per Share | $ 0.26 | $ 0.28 |
Diluted Earnings Per Share | $ 0.26 | $ 0.27 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings | $ 16,294 | $ 17,214 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (582) | (8,151) |
Pension adjustment, net of taxes of ($52) and $10 for the three months ended, respectively | (112) | 36 |
Comprehensive income | $ 15,600 | $ 9,099 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Pension adjustment tax | $ (52) | $ 10 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net earnings | $ 16,294 | $ 17,214 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 11,708 | 10,345 |
Amortization | 3,174 | 2,960 |
Share-based compensation expense | 3,073 | 4,009 |
Loss (gain) on foreign currency remeasurements and transactions | 582 | (712) |
Earnings from equity investment | (331) | (264) |
Deferred income taxes | 1,521 | (360) |
Excess tax benefits from share-based compensation expense | (139) | (30) |
Increase (decrease) in cash from changes in: | ||
Accounts receivable | 8,283 | 6,459 |
Inventories | (7,551) | (5,489) |
Accounts payable | 8,338 | (5,073) |
Income taxes | 166 | 766 |
Accrued compensation and benefits | (19,756) | (7,183) |
Other operating net assets | (5,849) | (463) |
Net cash provided by operating activities | 19,513 | 22,179 |
Cash Flows from Investing Activities | ||
Additions to property, plant & equipment | (29,994) | (9,424) |
Other investing activities | 145 | 25 |
Net cash used in investing activities | (29,849) | (9,399) |
Cash Flows from Financing Activities | ||
Proceeds from borrowings | 24,000 | 4,000 |
Payments on borrowings | (10,000) | (17,500) |
Purchases of treasury stock | (5,884) | |
Proceeds from exercises of stock options | 1,745 | 766 |
Payments in satisfaction of employees' minimum tax obligations | (2,230) | (1,680) |
Debt issuance costs | (1,384) | |
Other financing activities | 139 | 30 |
Net cash provided by (used in) financing activities | 12,270 | (20,268) |
Effect of exchange rate changes on cash and cash equivalents | (283) | (2,367) |
Net increase (decrease) in cash and cash equivalents | 1,651 | (9,855) |
Cash and Cash Equivalents at Beginning of Period | 218,445 | 173,634 |
Cash and Cash Equivalents at End of Period | 220,096 | 163,779 |
Cash paid for interest | 1,092 | 657 |
Cash paid for income taxes | $ 5,721 | 4,535 |
Non cash transactions: | ||
Purchases of treasury stock recorded in Other accrued liabilities | $ 400 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 3 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
Beginning Balance at Jun. 30, 2016 | $ 782,338 | $ 243,812 | $ (14,017) | $ 652,788 | $ (100,245) |
Beginning Balance, shares at Jun. 30, 2016 | 72,840 | (10,966) | |||
Shares issued under share-based compensation plans | (485) | $ 1,745 | $ (2,230) | ||
Shares issued under share-based compensation plans (in shares) | 373 | (104) | |||
Net earnings | 16,294 | 16,294 | |||
Treasury stock under deferred compensation arrangements | $ 786 | $ (786) | |||
Treasury stock under deferred compensation arrangements, (in shares) | 37 | 16 | |||
Foreign currency translation adjustments | (582) | (582) | |||
Share-based compensation expense | 3,073 | $ 3,073 | |||
Pension adjustment, net of taxes of ($52) | (112) | (112) | |||
Net tax benefits from share-based compensation expense | 31 | 31 | |||
Ending Balance at Sep. 30, 2016 | $ 800,557 | $ 249,447 | $ (14,711) | $ 669,082 | $ (103,261) |
Ending Balance, shares at Sep. 30, 2016 | 73,250 | (11,054) |
Condensed Consolidated Stateme9
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||
Pension adjustment tax | $ (52) | $ 10 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 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 months ended September 30, 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, 2016. The consolidated results of operations for the three months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full fiscal year. The June 30, 2016 Condensed Consolidated Balance Sheet information was derived from the Company’s audited financial statements. Certain amounts from prior periods have been reclassified on the Condensed Consolidated Statements of Cash Flows to conform to the current year presentation relating to Accrued compensation and benefits in Net cash provided by operating activities and Payments in satisfaction of employees’ minimum tax obligations in Net cash provided by (used in) financing activities. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 2 . Recent Accounting Pronouncements Adopted Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company adopted ASU 2015-03, as clarified by ASU 2015-15, which did not have a material impact on the Company’s Consolidated Financial Statements other than corresponding reductions to total assets and total liabilities on the Condensed Consolidated Balance Sheets. Prior to adoption, the Company recorded deferred financing costs as Other assets on the Consolidated Balance Sheets. Upon adoption, the Company reclassified these costs as unamortized debt issuance costs that reduce long term debt on the consolidated balance sheet and retrospectively reclassified $0.6 million that were previously presented as deferred financing costs, an asset on the consolidated balance sheet as of June 30, 2016. There was no effect on the consolidated statements of operations as a result of the adoption. 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 adoption of this standard did not 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 adoption of this standard did not 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 adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Pronouncements Currently Under Evaluation In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments in the update provide guidance on eight specific cash flow issues. The update 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 May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in the update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this update affect only narrow aspects of Topic 606. The update will be effective for the Company’s 2019 fiscal year. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. 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 2018 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. 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 2020 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Recognition and measurement of Financial Assets and Financial Liabilities (Topic 825). This update requires that public entities measure equity investments with readily determinable fair values, at fair value, with changes in their fair value recorded through net income. This ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The standard will be effective for the Company’s 2018 fiscal year. The Company is evaluating the impact 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 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. The Company has not yet selected a transition method and is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern”. This update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The update is 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. |
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 30, 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 in the amount of $2.0 million for the achievement of each specific annual 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. The Company completed its valuation of the assets of EpiWorks during the quarter ended September 30, 2016. The following table presents the purchase price 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 4,352 Purchase price $ 47,496 The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition. ($000): Assets Accounts receivable $ 2,121 Inventories 2,435 Prepaid and other assets 68 Property, plant & equipment 9,043 Intangible assets 14,124 Goodwill 27,588 Total assets acquired $ 55,379 Liabilities Accounts payable $ 605 Other accrued liabilities 859 Deferred tax liabilities 6,419 Total liabilities assumed 7,883 Net assets acquired $ 47,496 The goodwill of $27.6 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. ANADIGICS, Inc. In March 2016, the Company acquired all the outstanding shares of ANADIGICS, Inc.,(“ANADIGICS”) a previously publicly traded company based in New Jersey. Under the terms of the merger agreement, the consideration consisted of both a working capital advance of $3.5 million and cash paid of $78.2 million at the acquisition date, 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, at the time of the acquisition, ANADIGICS designed and manufactured innovative radiofrequency (RF) solutions for CATV infrastructure, small-cell, WIFI and cellular markets. The Company divested this portion of the business in June 2016. In conjunction with the sale of the RF business, the Company renamed ANADIGICS as II-VI OptoElectronic Devices Division (“OED”). OED is a business unit of the Company’s II-VI Laser Solutions operating segment for financial reporting purposes. The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 3,973 Inventories 8,322 Prepaid and other assets 2,347 Property, plant & equipment 25,810 Intangible assets 1,060 Goodwill 48,312 Total assets acquired $ 89,824 Liabilities Accounts payable $ 3,586 Other accrued liabilities 7,226 Total liabilities assumed 10,812 Net assets acquired $ 79,012 The goodwill of $48.3 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. Deferred Income Taxes In connection with above acquisitions, the Company adopted an accounting policy to apply acquired deferred tax liabilities to pre-existing deferred tax assets before evaluating the need for a valuation allowance for acquired deferred tax assets. During fiscal year 2016, the Company recorded a $36.2 million valuation allowance within purchase accounting as a result of the company incurring a cumulative U.S. three year loss. Divesture of the RF Business of ANADIGICS On June 3, 2016, the Company sold the RF business of ANADIGICS that it acquired on March 15, 2016. The consideration consisted of $45.0 million of cash received at closing, a working capital adjustment of $0.6 million to be received within 60 days after closing and $5.0 million contingent consideration to be earned based upon supplying minimum volumes of wafers to the purchaser over an 18-month period through December 2017. The $5.0 million contingent consideration will be recognized in net earnings when earned and received from the purchaser. During the quarter ended September 30, 2016, the Company recorded $1.25 million of this contingent consideration in Other income, net in the Condensed Consolidated Statement of Earnings. The Company believes the sale of this non-strategic business will allow the Company to focus its financial resources and devote greater attention to the 6-inch wafer fab business. The Company incurred approximately $0.4 million in transaction expenses and recorded an immaterial gain of less than $0.1 million on the sale of the RF business in fiscal year 2016. The following table presents the carrying value of the assets and liabilities included as part of the disposal of the RF business of ANADIGICS ($000): Assets Inventories $ 5,378 Equipment 5,813 Goodwill 35,352 $ 46,543 Liabilities Accounts payable $ 963 Total Consideration $ 45,580 |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 . Inventories The components of inventories were as follows ($000): September 30, June 30, 2016 2016 Raw materials $ 72,808 $ 70,623 Work in progress 60,806 57,566 Finished goods 49,033 46,944 $ 182,647 $ 175,133 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5 . Property, Plant and Equipment Property, plant and equipment consists of the following ($000): September 30, June 30, 2016 2016 Land and land improvements $ 5,001 $ 4,990 Buildings and improvements 110,703 110,219 Machinery and equipment 420,306 409,551 Construction in progress 52,277 34,602 588,287 559,362 Less accumulated depreciation (327,375 ) (316,505 ) $ 260,912 $ 242,857 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6 . Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill were as follows ($000): Three Months Ended September 30, 2016 II-VI Laser II-VI II-VI Performance Solutions Photonics Products Total Balance-beginning of period $ 84,105 $ 96,760 $ 52,890 $ 233,755 Foreign currency translation 8 (159 ) - (151 ) Balance-end of period $ 84,113 $ 96,601 $ 52,890 $ 233,604 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 September 30, 2016. The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of September 30, 2016 and June 30, 2016 were as follows ($000): September 30, 2016 June 30, 2016 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 54,297 $ (23,780 ) $ 30,517 $ 54,344 $ (22,724 ) $ 31,620 Trade Names 15,852 (1,241 ) 14,611 15,869 (1,209 ) 14,660 Customer Lists 112,113 (35,869 ) 76,244 112,141 (33,912 ) 78,229 Other 1,571 (1,499 ) 72 1,571 (1,490 ) 81 Total $ 183,833 $ (62,389 ) $ 121,444 $ 183,925 $ (59,335 ) $ 124,590 Amortization expense recorded on the Company’s intangible assets was $3.2 million and $3.0 million for the three months ended September 30, 2016 and 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 98 months. The customer lists are being amortized over a range of approximately 60 to 240 months with a weighted average remaining life of approximately 142 months. The gross carrying amount of trade names includes $14.1 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 September 30, 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 2017 $ 9,514 2018 $ 12,108 2019 $ 11,789 2020 $ 11,048 2021 $ 10,181 |
Debt
Debt | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt The components of debt for the periods indicated were as follows ($000): September 30, June 30, 2016 2016 Line of credit, interest at LIBOR, as defined, plus 1.5% $ 147,000 $ 188,000 Term loan, interest at LIBOR, as defined, plus 1.5% 100,000 45,000 Yen denominated line of credit, interest at LIBOR, as defined, plus 0.625% 2,966 2,917 Total debt 249,966 235,917 Current portion of long-term debt (20,000 ) (20,000 ) Unamortized debt issuance costs (1,760 ) (610 ) Long-term debt, less current portion and debt issuance costs $ 228,206 $ 215,307 On July 28, 2016, the Company entered into a Third Amended and Restated Credit Agreement (the “Amended Credit Facility”) which amended the related prior credit facility. The Amended Credit Facility provides for a revolving credit facility of $325 million (increased from $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 commencing on October 1, 2016, as follows: (i) twenty consecutive quarterly installments of $5 million and (ii) a final installment of all remaining principal due and payable on the maturity date of July 27, 2021. Amounts borrowed under the revolving credit facility are due and payable on the maturity date. The Amended Credit Facility is unsecured, but is guaranteed by each existing and subsequently acquired or organized wholly-owned domestic subsidiary of the Company. The Company has the option to request an increase to the size of the revolving credit facility in an aggregate additional amount not to exceed $100 million. The Amended Credit Facility has a five-year term through July 27, 2021 and has an interest rate of either a Base Rate Option or a Euro-Rate Option, plus an Applicable Margin, as defined in the agreement governing the Amended Credit Facility. If the Base Rate option is selected for a borrowing, the Applicable Margin is 0.00% to 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 part of entering into the Amended Credit Facility, the Company incurred $1.4 million of new debt issuance costs which are being amortized over the term of the facility. As of September 30, 2016, the Company was in compliance with all financial covenants under its Amended Credit Facility. The Company’s Yen denominated line of credit is a 500 million Yen (approximately $4.9 million) facility. The Yen line of credit matures in August 2020. The interest rate is equal to LIBOR, as defined in the loan agreement, plus 0.625% to 1.50%. At September 30, 2016 and June 30, 2016, 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 September 30, 2016, the Company was in compliance with all financial covenants under its Yen facility. The Company had aggregate availability of $178.7 million and $37.7 million under its lines of credit as of September 30, 2016 and June 30, 2016, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. As of September 30, 2016 and June 30, 2016, total outstanding letters of credit supported by these credit facilities was $1.2 million for both periods. The weighted average interest rate of total borrowings was 2.0% and 1.5% for the three months ended September 30, 2016 and 2015, respectively. Remaining annual principal payments under the Company’s existing credit facilities as of September 30, 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 20,000 - - 20,000 Year 4 20,000 2,966 - 22,966 Year 5 20,000 - 147,000 167,000 Total $ 100,000 $ 2,966 $ 147,000 $ 249,966 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 . Income Taxes The Company’s year-to-date effective income tax rate at September 30, 2016 and 2015 was 31.7% and 22.2%, 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 September 30, 2016 and June 30, 2016, the Company’s gross unrecognized income tax benefit was $7.3 million and $5.6 million, respectively. The Company has classified the majority of 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 September 30, 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 gross unrecognized income tax benefit was $0.9 million and $0.1 million at September 30, 2016 and June 30, 2016, respectively. Fiscal years 2013 to 2017 remain open to examination by the United States Internal Revenue Service, fiscal years 2011 to 2017 remain open to examination by certain state jurisdictions, and fiscal years 2006 to 2017 remain open to examination by certain foreign taxing jurisdictions. The Company’s fiscal years 2012 through 2015 New Jersey state income tax returns and fiscal years 2006 through 2014 Vietnam income tax returns are currently under examination. The Company believes its income tax reserves for these tax matters are adequate. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 . Earnings Per Share The following table sets forth the computation of earnings per share for the periods indicated. Weighted average shares issuable upon the exercises of stock options and the release of performance and restricted shares not included in the calculation were approximately 368,000 and 232,000 for the three months ended September 30, 2016 and 2015, respectively, because they were anti-dilutive. ($000 except per share data): Three Months Ended September 30, 2016 2015 Net earnings $ 16,294 $ 17,214 Divided by: Weighted average shares 62,020 61,223 Basic earnings per common share: $ 0.26 $ 0.28 Net earnings $ 16,294 $ 17,214 Divided by: Weighted average shares 62,020 61,223 Dilutive effect of common stock equivalents 1,570 1,506 Diluted weighted average common shares 63,590 62,729 Diluted earnings per common share: $ 0.26 $ 0.27 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 10 . 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, Hong Kong and the Philippines. 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 (“SiC”) 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. The following tables summarize selected financial information of the Company’s operations by segment ($000): Three Months Ended September 30, 2016 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 79,290 $ 95,819 $ 46,411 $ - $ 221,520 Inter-segment revenues 5,940 3,438 1,733 (11,111 ) - Operating income 6,698 13,890 3,103 - 23,691 Interest expense - - - - (1,246 ) Other income, net - - - - 1,402 Income taxes - - - - (7,553 ) Net earnings - - - - 16,294 Depreciation and amortization 5,650 4,848 4,384 - 14,882 Segment assets 476,617 473,569 278,301 - 1,228,487 Expenditures for property, plant & equipment 20,125 6,597 3,272 - 29,994 Investment - - 11,684 - 11,684 Goodwill 84,113 96,601 52,890 - 233,604 Three Months Ended September 30, 2015 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 71,583 $ 71,895 $ 45,729 $ - $ 189,207 Inter-segment revenues 4,530 3,031 2,395 (9,956 ) - Operating income 12,175 6,284 3,269 - 21,728 Interest expense - - - - (649 ) Other income, net - - - - 1,057 Income taxes - - - - (4,922 ) Net earnings - - - - 17,214 Depreciation and amortization 3,704 5,093 4,508 - 13,305 Expenditures for property, plant & equipment 5,880 2,152 1,392 - 9,424 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 11. Share-Based Compensation The Board of Directors adopted the II-VI Incorporated Amended and Restated 2012 Omnibus Incentive Plan (the “Plan”), which was approved by the shareholders. 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 20% to cost of goods sold and 80% to selling, general and administrative expense, based on the employee classification of the grantees. Share-based compensation expense for the periods indicated was as follows ($000): Three Months Ended September 30, 2016 2015 Stock Options and Cash-Based Stock Appreciation Rights $ 1,663 $ 2,386 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 1,878 1,231 Performance Share Awards and Cash-Based Performance Share Unit Awards 608 248 $ 4,149 $ 3,865 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Fair Value of Financial Instruments | Note 12 . 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 September 30, 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, restrictions and other terms specific to the contracts. Foreign currency gain related to these contracts was immaterial for the three months ended September 30, 2016. The Company also 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 based upon EpiWorks achieving certain agreed upon financial and operational targets for capacity, wafer output and gross margin, which if earned would be payable for the achievement of each specific annual target over the next three years. The fair value of the contingent earnout arrangement was measured using valuations based upon other unobservable inputs that are significant to the fair value measurement (Level 3). 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 September 30, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs September 30, 2016 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 163 $ - $ 163 $ - Contingent earnout arrangement $ 4,410 $ - $ - $ 4,410 Fair Value Measurements at June 30, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2016 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 511 $ - $ 511 $ - Contingent earnout arrangement $ 4,352 $ - $ - $ 4,352 The Company’s policy is to report transfers into and out of Levels 1 and 2 of the fair value hierarchy at fair values as of the beginning of the period in which the transfers occur. There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy during the three months ended September 30, 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, 2016 $ 4,352 Payments - Changes in fair value 58 Balance at September 30, 2016 $ 4,410 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 | 3 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 13. 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 $12.2 million and $9.2 million at September 30, 2016 and June 30, 2016, respectively. As of September 30, 2016, these forward contracts had expiration dates ranging from October 2016 through January 2017, with Japanese Yen denominations individually ranging from 300 million Yen to 350 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 accrued liabilities in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2016 and June 30, 2016. The change in the fair value of these contracts for each of the three months ended September 30, 2016 and 2015 was insignificant. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Commitments and Contingencies | Note 14 . 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): Three Months Ended September 30, 2016 Balance-beginning of period $ 3,908 Payments made during the period (985 ) Additional warranty liability recorded 795 Balance-end of period $ 3,718 |
Post-Retirement Benefits
Post-Retirement Benefits | 3 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Post-Retirement Benefits | Note 15. Post-Retirement Benefits The Company has a pension plan (the “Swiss Plan”) covering employees of the Zurich, Switzerland subsidiary. Net periodic pension costs associated with the Swiss Plan included the following ($000): Three Months Ended September 30, 2016 2015 Service cost $ 897 $ 683 Interest cost 40 111 Expected return on plan assets (181 ) (280 ) Net amortization (164 ) 46 Net periodic pension costs $ 592 $ 560 The Company contributed $0.9 million and $0.5 million to the Swiss Plan during the three months ended September 30, 2016 and 2015, respectively. The Company currently anticipates contributing an additional estimated amount of approximately $2.7 million to the Swiss Plan during the remainder of fiscal year 2017. |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Share Repurchase Program | Note 16 . 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 September 30, 2016, the Company has purchased 1,316,587 shares of its Common Stock pursuant to the Program for approximately $19.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 17. Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (“AOCI") by component, net of tax, for the three months ended September 30, 2016 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Loss AOCI - June 30, 2016 $ (6,185 ) $ (7,832 ) $ (14,017 ) Other comprehensive loss before reclassifications (582 ) - (582 ) Amounts reclassified from AOCI - (112 ) (112 ) Net current-period other comprehensive loss (582 ) (112 ) (694 ) AOCI - September 30, 2016 $ (6,767 ) $ (7,944 ) $ (14,711 ) |
Subsequent Event
Subsequent Event | 3 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 18. Subsequent Event On October 17, 2016, the Company entered into a lease effective January 1, 2017 relating to their facility in Warren, New Jersey. The lease will be classified as a capital lease for financial statement purposes upon the effective date. |
Recent Accounting Pronounceme28
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Adopted Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company adopted ASU 2015-03, as clarified by ASU 2015-15, which did not have a material impact on the Company’s Consolidated Financial Statements other than corresponding reductions to total assets and total liabilities on the Condensed Consolidated Balance Sheets. Prior to adoption, the Company recorded deferred financing costs as Other assets on the Consolidated Balance Sheets. Upon adoption, the Company reclassified these costs as unamortized debt issuance costs that reduce long term debt on the consolidated balance sheet and retrospectively reclassified $0.6 million that were previously presented as deferred financing costs, an asset on the consolidated balance sheet as of June 30, 2016. There was no effect on the consolidated statements of operations as a result of the adoption. 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 adoption of this standard did not 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 adoption of this standard did not 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 adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Pronouncements Currently Under Evaluation In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments in the update provide guidance on eight specific cash flow issues. The update 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 May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in the update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this update affect only narrow aspects of Topic 606. The update will be effective for the Company’s 2019 fiscal year. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. 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 2018 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. 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 2020 fiscal year. Early adoption is permitted. The Company is evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Recognition and measurement of Financial Assets and Financial Liabilities (Topic 825). This update requires that public entities measure equity investments with readily determinable fair values, at fair value, with changes in their fair value recorded through net income. This ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The standard will be effective for the Company’s 2018 fiscal year. The Company is evaluating the impact 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 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. The Company has not yet selected a transition method and is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern”. This update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The update is 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
EpiWorks | |
Purchase Price at the Date of Acquisition | The following table presents the purchase price 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 4,352 Purchase price $ 47,496 |
Final Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition. ($000): Assets Accounts receivable $ 2,121 Inventories 2,435 Prepaid and other assets 68 Property, plant & equipment 9,043 Intangible assets 14,124 Goodwill 27,588 Total assets acquired $ 55,379 Liabilities Accounts payable $ 605 Other accrued liabilities 859 Deferred tax liabilities 6,419 Total liabilities assumed 7,883 Net assets acquired $ 47,496 |
ANADIGICS | |
Final Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 3,973 Inventories 8,322 Prepaid and other assets 2,347 Property, plant & equipment 25,810 Intangible assets 1,060 Goodwill 48,312 Total assets acquired $ 89,824 Liabilities Accounts payable $ 3,586 Other accrued liabilities 7,226 Total liabilities assumed 10,812 Net assets acquired $ 79,012 |
RF Business of ANADIGICS | |
Carrying Value of the Assets and Liabilities Included as Part of Disposal | The following table presents the carrying value of the assets and liabilities included as part of the disposal of the RF business of ANADIGICS ($000): Assets Inventories $ 5,378 Equipment 5,813 Goodwill 35,352 $ 46,543 Liabilities Accounts payable $ 963 Total Consideration $ 45,580 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows ($000): September 30, June 30, 2016 2016 Raw materials $ 72,808 $ 70,623 Work in progress 60,806 57,566 Finished goods 49,033 46,944 $ 182,647 $ 175,133 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following ($000): September 30, June 30, 2016 2016 Land and land improvements $ 5,001 $ 4,990 Buildings and improvements 110,703 110,219 Machinery and equipment 420,306 409,551 Construction in progress 52,277 34,602 588,287 559,362 Less accumulated depreciation (327,375 ) (316,505 ) $ 260,912 $ 242,857 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows ($000): Three Months Ended September 30, 2016 II-VI Laser II-VI II-VI Performance Solutions Photonics Products Total Balance-beginning of period $ 84,105 $ 96,760 $ 52,890 $ 233,755 Foreign currency translation 8 (159 ) - (151 ) Balance-end of period $ 84,113 $ 96,601 $ 52,890 $ 233,604 |
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 September 30, 2016 and June 30, 2016 were as follows ($000): September 30, 2016 June 30, 2016 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 54,297 $ (23,780 ) $ 30,517 $ 54,344 $ (22,724 ) $ 31,620 Trade Names 15,852 (1,241 ) 14,611 15,869 (1,209 ) 14,660 Customer Lists 112,113 (35,869 ) 76,244 112,141 (33,912 ) 78,229 Other 1,571 (1,499 ) 72 1,571 (1,490 ) 81 Total $ 183,833 $ (62,389 ) $ 121,444 $ 183,925 $ (59,335 ) $ 124,590 |
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Fiscal Years | At September 30, 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 2017 $ 9,514 2018 $ 12,108 2019 $ 11,789 2020 $ 11,048 2021 $ 10,181 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of debt for the periods indicated were as follows ($000): September 30, June 30, 2016 2016 Line of credit, interest at LIBOR, as defined, plus 1.5% $ 147,000 $ 188,000 Term loan, interest at LIBOR, as defined, plus 1.5% 100,000 45,000 Yen denominated line of credit, interest at LIBOR, as defined, plus 0.625% 2,966 2,917 Total debt 249,966 235,917 Current portion of long-term debt (20,000 ) (20,000 ) Unamortized debt issuance costs (1,760 ) (610 ) Long-term debt, less current portion and debt issuance costs $ 228,206 $ 215,307 |
Remaining Annual Amounts of Principal Payments | Remaining annual principal payments under the Company’s existing credit facilities as of September 30, 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 20,000 - - 20,000 Year 4 20,000 2,966 - 22,966 Year 5 20,000 - 147,000 167,000 Total $ 100,000 $ 2,966 $ 147,000 $ 249,966 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 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 not included in the calculation were approximately 368,000 and 232,000 for the three months ended September 30, 2016 and 2015, respectively, because they were anti-dilutive. ($000 except per share data): Three Months Ended September 30, 2016 2015 Net earnings $ 16,294 $ 17,214 Divided by: Weighted average shares 62,020 61,223 Basic earnings per common share: $ 0.26 $ 0.28 Net earnings $ 16,294 $ 17,214 Divided by: Weighted average shares 62,020 61,223 Dilutive effect of common stock equivalents 1,570 1,506 Diluted weighted average common shares 63,590 62,729 Diluted earnings per common share: $ 0.26 $ 0.27 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Sep. 30, 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 September 30, 2016 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 79,290 $ 95,819 $ 46,411 $ - $ 221,520 Inter-segment revenues 5,940 3,438 1,733 (11,111 ) - Operating income 6,698 13,890 3,103 - 23,691 Interest expense - - - - (1,246 ) Other income, net - - - - 1,402 Income taxes - - - - (7,553 ) Net earnings - - - - 16,294 Depreciation and amortization 5,650 4,848 4,384 - 14,882 Segment assets 476,617 473,569 278,301 - 1,228,487 Expenditures for property, plant & equipment 20,125 6,597 3,272 - 29,994 Investment - - 11,684 - 11,684 Goodwill 84,113 96,601 52,890 - 233,604 Three Months Ended September 30, 2015 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total Revenues $ 71,583 $ 71,895 $ 45,729 $ - $ 189,207 Inter-segment revenues 4,530 3,031 2,395 (9,956 ) - Operating income 12,175 6,284 3,269 - 21,728 Interest expense - - - - (649 ) Other income, net - - - - 1,057 Income taxes - - - - (4,922 ) Net earnings - - - - 17,214 Depreciation and amortization 3,704 5,093 4,508 - 13,305 Expenditures for property, plant & equipment 5,880 2,152 1,392 - 9,424 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Expense by Award Type | Share-based compensation expense is allocated approximately 20% to cost of goods sold and 80% to selling, general and administrative expense, based on the employee classification of the grantees. Share-based compensation expense for the periods indicated was as follows ($000): Three Months Ended September 30, 2016 2015 Stock Options and Cash-Based Stock Appreciation Rights $ 1,663 $ 2,386 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 1,878 1,231 Performance Share Awards and Cash-Based Performance Share Unit Awards 608 248 $ 4,149 $ 3,865 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 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 September 30, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs September 30, 2016 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 163 $ - $ 163 $ - Contingent earnout arrangement $ 4,410 $ - $ - $ 4,410 Fair Value Measurements at June 30, 2016 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2016 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 511 $ - $ 511 $ - Contingent earnout arrangement $ 4,352 $ - $ - $ 4,352 |
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, 2016 $ 4,352 Payments - Changes in fair value 58 Balance at September 30, 2016 $ 4,410 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 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): Three Months Ended September 30, 2016 Balance-beginning of period $ 3,908 Payments made during the period (985 ) Additional warranty liability recorded 795 Balance-end of period $ 3,718 |
Post-Retirement Benefits (Table
Post-Retirement Benefits (Tables) | 3 Months Ended |
Sep. 30, 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 September 30, 2016 2015 Service cost $ 897 $ 683 Interest cost 40 111 Expected return on plan assets (181 ) (280 ) Net amortization (164 ) 46 Net periodic pension costs $ 592 $ 560 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Sep. 30, 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 three months ended September 30, 2016 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Loss AOCI - June 30, 2016 $ (6,185 ) $ (7,832 ) $ (14,017 ) Other comprehensive loss before reclassifications (582 ) - (582 ) Amounts reclassified from AOCI - (112 ) (112 ) Net current-period other comprehensive loss (582 ) (112 ) (694 ) AOCI - September 30, 2016 $ (6,767 ) $ (7,944 ) $ (14,711 ) |
Recent Accounting Pronounceme41
Recent Accounting Pronouncements - Additional Information (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Adopted Pronouncements | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Reclassification of unamortized debt issuance costs | $ 0.6 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Jun. 03, 2016 | Mar. 31, 2016 | Feb. 29, 2016 | Sep. 30, 2016 | Jun. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 233,604,000 | $ 233,755,000 | |||
EpiWorks | |||||
Business Acquisition [Line Items] | |||||
Net cash paid at acquisition | $ 42,981,000 | ||||
Payment of additional amount for working capital adjustment | 163,000 | ||||
Goodwill | 27,588,000 | ||||
Fair value of accounts receivable acquired | 2,100,000 | ||||
Fair value of accounts receivable gross contractual amount | 2,100,000 | ||||
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 | 6,000,000 | ||||
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 | 2,000,000 | ||||
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 | 2,000,000 | ||||
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 | $ 2,000,000 | ||||
ANADIGICS | |||||
Business Acquisition [Line Items] | |||||
Net cash paid at acquisition | $ 78,200,000 | ||||
Payment of additional amount for working capital adjustment | 3,500,000 | ||||
Goodwill | 48,312,000 | ||||
Fair value of accounts receivable acquired | 4,000,000 | ||||
Fair value of accounts receivable gross contractual amount | 4,000,000 | ||||
Business acquisition, cash acquired | $ 2,700,000 | ||||
Deferred income taxes, valuation allowance | 36,200,000 | ||||
RF Business of ANADIGICS | |||||
Business Acquisition [Line Items] | |||||
Proceeds from the sale of business | $ 45,000,000 | ||||
Working capital adjustment to be received from divesture of business | 600,000 | ||||
Contingent consideration to be earned from divesture of business | 5,000,000 | ||||
Contingent consideration recognized in net earnings | $ 5,000,000 | ||||
Contingent consideration, period | 18 months | ||||
Business divesture transaction expenses | 400,000 | ||||
RF Business of ANADIGICS | Other Income, Net | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration recognized in net earnings | $ 1,250,000 | ||||
RF Business of ANADIGICS | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Working capital adjustment recognition period | 60 days | ||||
Gain on sale of business | $ 100,000 |
Purchase Price at the Date of A
Purchase Price at the Date of Acquisition (Detail) - EpiWorks $ in Thousands | 1 Months Ended |
Feb. 29, 2016USD ($) | |
Business Acquisition [Line Items] | |
Net cash paid at acquisition | $ 42,981 |
Cash paid for working capital adjustment | 163 |
Fair value of cash earnout arrangement | 4,352 |
Purchase price | $ 47,496 |
Final Allocation of Purchase Pr
Final Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail)) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Feb. 29, 2016 |
Assets | ||||
Goodwill | $ 233,604 | $ 233,755 | ||
EpiWorks | ||||
Assets | ||||
Accounts receivable | $ 2,121 | |||
Inventories | 2,435 | |||
Prepaid and other assets | 68 | |||
Property, plant & equipment | 9,043 | |||
Intangible assets | 14,124 | |||
Goodwill | 27,588 | |||
Total assets acquired | 55,379 | |||
Liabilities | ||||
Accounts payable | 605 | |||
Other accrued liabilities | 859 | |||
Deferred tax liabilities | 6,419 | |||
Total liabilities assumed | 7,883 | |||
Net assets acquired | $ 47,496 | |||
ANADIGICS | ||||
Assets | ||||
Accounts receivable | $ 3,973 | |||
Inventories | 8,322 | |||
Prepaid and other assets | 2,347 | |||
Property, plant & equipment | 25,810 | |||
Intangible assets | 1,060 | |||
Goodwill | 48,312 | |||
Total assets acquired | 89,824 | |||
Liabilities | ||||
Accounts payable | 3,586 | |||
Other accrued liabilities | 7,226 | |||
Total liabilities assumed | 10,812 | |||
Net assets acquired | $ 79,012 |
Carrying Value of the Assets an
Carrying Value of the Assets and Liabilities Included as Part of Disposal (Detail) - RF Business of ANADIGICS $ in Thousands | Jun. 03, 2016USD ($) |
Assets | |
Inventories | $ 5,378 |
Equipment | 5,813 |
Goodwill | 35,352 |
Total assets | 46,543 |
Liabilities | |
Accounts payable | 963 |
Total Consideration | $ 45,580 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 72,808 | $ 70,623 |
Work in progress | 60,806 | 57,566 |
Finished goods | 49,033 | 46,944 |
Inventories, Total | $ 182,647 | $ 175,133 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 588,287 | $ 559,362 |
Less accumulated depreciation | (327,375) | (316,505) |
Property, Plant and Equipment, net | 260,912 | 242,857 |
Land and Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 5,001 | 4,990 |
Buildings and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 110,703 | 110,219 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 420,306 | 409,551 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 52,277 | $ 34,602 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Balance-beginning of period | $ 233,755 |
Foreign currency translation | (151) |
Balance-end of period | 233,604 |
II-VI Laser Solutions | |
Goodwill [Line Items] | |
Balance-beginning of period | 84,105 |
Foreign currency translation | 8 |
Balance-end of period | 84,113 |
II-VI Photonics | |
Goodwill [Line Items] | |
Balance-beginning of period | 96,760 |
Foreign currency translation | (159) |
Balance-end of period | 96,601 |
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 | Sep. 30, 2016 | Jun. 30, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 183,833 | $ 183,925 |
Accumulated Amortization | (62,389) | (59,335) |
Net Book Value | 121,444 | 124,590 |
Technology and Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 54,297 | 54,344 |
Accumulated Amortization | (23,780) | (22,724) |
Net Book Value | 30,517 | 31,620 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,852 | 15,869 |
Accumulated Amortization | (1,241) | (1,209) |
Net Book Value | 14,611 | 14,660 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 112,113 | 112,141 |
Accumulated Amortization | (35,869) | (33,912) |
Net Book Value | 76,244 | 78,229 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,571 | 1,571 |
Accumulated Amortization | (1,499) | (1,490) |
Net Book Value | $ 72 | $ 81 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill And Other Intangible Assets [Line Items] | ||
Amortization expense recorded on intangible assets | $ 3.2 | $ 3 |
Carrying amount of indefinite trade names acquired | $ 14.1 | |
Technology and Patents | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Remaining amortization period of patents and customer lists, in months | 98 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 | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Amortization period of finite lived intangible assets, in months | 240 months | |
Customer Lists | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Remaining amortization period of patents and customer lists, in months | 142 months | |
Customer Lists | Minimum | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Amortization period of finite lived intangible assets, in months | 60 months | |
Customer Lists | Maximum | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Amortization period of finite lived intangible assets, in months | 240 months |
Estimated Amortization Expense
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Fiscal Years (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remaining 2,017 | $ 9,514 |
2,018 | 12,108 |
2,019 | 11,789 |
2,020 | 11,048 |
2,021 | $ 10,181 |
Components of Debt (Detail)
Components of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Line Of Credit Facility [Line Items] | ||
Total debt | $ 249,966 | $ 235,917 |
Current portion of long-term debt | (20,000) | (20,000) |
Unamortized debt issuance costs | (1,760) | (610) |
Long-term debt, less current portion and debt issuance costs | 228,206 | 215,307 |
Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt | 147,000 | 188,000 |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Total debt | 100,000 | 45,000 |
Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt | $ 2,966 | $ 2,917 |
Components of Debt (Parenthetic
Components of Debt (Parenthetical) (Detail) - London Interbank Offered Rate (LIBOR) | 3 Months Ended |
Sep. 30, 2016 | |
Line of credit | |
Line Of Credit Facility [Line Items] | |
Debt instrument, rate added on variable rate | 1.50% |
Term Loans | |
Line Of Credit Facility [Line Items] | |
Debt instrument, rate added on variable rate | 1.50% |
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) | Jul. 28, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016JPY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2016JPY (¥) | Sep. 30, 2015 |
Line Of Credit Facility [Line Items] | ||||||
Available credit under lines of credit | $ 178,700,000 | $ 37,700,000 | ||||
Total outstanding letters of credit | $ 1,200,000 | 1,200,000 | ||||
Weighted average interest rate of total borrowings | 2.00% | 2.00% | 1.50% | |||
Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 325,000,000 | $ 225,000,000 | ||||
Credit facility, term | 5 years | |||||
Debt instrument, maturity date | Jul. 27, 2021 | |||||
Debt issuance costs | $ 1,400,000 | |||||
Term Loans | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | 100,000,000 | |||||
Term loan, quarterly principal Payment | $ 5,000,000 | |||||
Term loan, maturity date | Jul. 27, 2021 | |||||
Term loan, first quarterly principal payment commencement date | Oct. 1, 2016 | |||||
Yen denominated line of credit | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 4,900,000 | ¥ 500,000,000 | ||||
Debt instrument, month and year of maturity | 2020-08 | |||||
Line of credit, outstanding | ¥ | ¥ 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 | 1.50% | |||||
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 | Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility, optional additional borrowing amount | $ 100,000,000 | |||||
Maximum | Base Rate Option | Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt instrument, rate added on variable rate | 0.075% | |||||
Maximum | Euro Rate Option | Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt instrument, rate added on variable rate | 1.75% | |||||
Maximum | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt instrument, rate added on variable rate | 1.50% |
Remaining Annual Amounts of Pri
Remaining Annual Amounts of Principal Payments of Credit Facility (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Line Of Credit Facility [Line Items] | ||
Year 1 | $ 20,000 | |
Year 2 | 20,000 | |
Year 3 | 20,000 | |
Year 4 | 22,966 | |
Year 5 | 167,000 | |
Total debt | 249,966 | $ 235,917 |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Year 1 | 20,000 | |
Year 2 | 20,000 | |
Year 3 | 20,000 | |
Year 4 | 20,000 | |
Year 5 | 20,000 | |
Total debt | 100,000 | 45,000 |
Yen Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
Year 4 | 2,966 | |
Total debt | 2,966 | 2,917 |
U.S. Dollar Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
Year 5 | 147,000 | |
Total debt | $ 147,000 | $ 188,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 31.70% | 22.20% | |
U.S. statutory rate | 35.00% | ||
Unrecognized tax benefits that would impact effective tax rate | $ 7.3 | $ 5.6 | |
Interest and penalties accrued | $ 0.9 | $ 0.1 | |
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 | 2,017 | ||
New Jersey | Tax Year 2012 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,012 | ||
New Jersey | Tax Year 2013 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,013 | ||
New Jersey | Tax Year 2014 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,014 | ||
New Jersey | Tax Year 2015 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,015 | ||
Vietnam | Tax Year 2006 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,006 | ||
Vietnam | Tax Year 2007 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,007 | ||
Vietnam | Tax Year 2008 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,008 | ||
Vietnam | Tax Year 2009 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,009 | ||
Vietnam | Tax Year 2010 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,010 | ||
Vietnam | Tax Year 2011 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,011 | ||
Vietnam | Tax Year 2012 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,012 | ||
Vietnam | Tax Year 2013 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,013 | ||
Vietnam | Tax Year 2014 | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2,014 | ||
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 | 2,017 | ||
Foreign Taxing Jurisdictions | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,006 | ||
Foreign Taxing Jurisdictions | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2,017 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 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 | 368,000 | 232,000 |
Computation of Earnings Per Sha
Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 16,294 | $ 17,214 |
Weighted average shares | 62,020 | 61,223 |
Basic earnings per common share: | $ 0.26 | $ 0.28 |
Net earnings | $ 16,294 | $ 17,214 |
Weighted average shares | 62,020 | 61,223 |
Dilutive effect of common stock equivalents | 1,570 | 1,506 |
Diluted weighted average common shares | 63,590 | 62,729 |
Diluted earnings per common share: | $ 0.26 | $ 0.27 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 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 | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Revenues | $ 221,520 | $ 189,207 | |
Operating income | 23,691 | 21,728 | |
Interest expense | (1,246) | (649) | |
Other income, net | 1,402 | 1,057 | |
Income taxes | (7,553) | (4,922) | |
Net earnings | 16,294 | 17,214 | |
Depreciation and amortization | 14,882 | 13,305 | |
Segment assets | 1,228,487 | $ 1,211,981 | |
Expenditures for property, plant & equipment | 29,994 | 9,424 | |
Investment | 11,684 | 11,354 | |
Goodwill | 233,604 | 233,755 | |
Eliminations | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Inter-segment revenues | (11,111) | (9,956) | |
II-VI Laser Solutions | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Goodwill | 84,113 | 84,105 | |
II-VI Laser Solutions | Operating Segments | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Revenues | 79,290 | 71,583 | |
Inter-segment revenues | 5,940 | 4,530 | |
Operating income | 6,698 | 12,175 | |
Depreciation and amortization | 5,650 | 3,704 | |
Segment assets | 476,617 | ||
Expenditures for property, plant & equipment | 20,125 | 5,880 | |
Goodwill | 84,113 | ||
II-VI Photonics | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Goodwill | 96,601 | 96,760 | |
II-VI Photonics | Operating Segments | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Revenues | 95,819 | 71,895 | |
Inter-segment revenues | 3,438 | 3,031 | |
Operating income | 13,890 | 6,284 | |
Depreciation and amortization | 4,848 | 5,093 | |
Segment assets | 473,569 | ||
Expenditures for property, plant & equipment | 6,597 | 2,152 | |
Goodwill | 96,601 | ||
II- VI Performance Products | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Goodwill | 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 | 46,411 | 45,729 | |
Inter-segment revenues | 1,733 | 2,395 | |
Operating income | 3,103 | 3,269 | |
Depreciation and amortization | 4,384 | 4,508 | |
Segment assets | 278,301 | ||
Expenditures for property, plant & equipment | 3,272 | $ 1,392 | |
Investment | 11,684 | ||
Goodwill | $ 52,890 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2016shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of share based compensation expense allocated to cost of sales | 20.00% |
Percentage of share based compensation expense allocated to selling, general and administrative expense | 80.00% |
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 | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation expense | $ 4,149 | $ 3,865 |
Stock Options and Cash-Based Stock Appreciation Rights | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation expense | 1,663 | 2,386 |
Restricted Share Awards and Cash-Based Restricted Share Unit Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation expense | 1,878 | 1,231 |
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 | $ 608 | $ 248 |
Fair Value of Financial Instr63
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | Feb. 29, 2016USD ($) |
EpiWorks | Upon Achievement of Financial and Operational Targets For Capacity Wafer Output and Gross Margin [Member] | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Business acquisitions, contingent consideration | $ 6 |
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 | Sep. 30, 2016 | Jun. 30, 2016 |
Liabilities: | ||
Foreign currency forward contracts | $ 163 | $ 511 |
Contingent earnout arrangement | 4,410 | 4,352 |
Fair Value, Inputs, Level 2 | ||
Liabilities: | ||
Foreign currency forward contracts | 163 | 511 |
Fair Value, Inputs, Level 3 | ||
Liabilities: | ||
Contingent earnout arrangement | $ 4,410 | $ 4,352 |
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 | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Business Acquisition Contingent Consideration [Line Items] | |
Balance - beginning of period | $ 4,352 |
Changes in fair value | 58 |
Balance - end of period | $ 4,410 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 3 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2016JPY (¥) | Jun. 30, 2016USD ($) | |
Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2016-10 | ||
Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2017-01 | ||
Foreign Currency Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | $ | $ 12,200,000 | $ 9,200,000 | |
Foreign Currency Forward Exchange Contracts | Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 300,000,000 | ||
Foreign Currency Forward Exchange Contracts | Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 350,000,000 |
Change in Carrying Value of Com
Change in Carrying Value of Company's Warranty Reserve (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Guarantees [Abstract] | |
Balance-beginning of period | $ 3,908 |
Payments made during the period | (985) |
Additional warranty liability recorded | 795 |
Balance-end of period | $ 3,718 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 897 | $ 683 |
Interest cost | 40 | 111 |
Expected return on plan assets | (181) | (280) |
Net amortization | (164) | 46 |
Net periodic pension costs | $ 592 | $ 560 |
Post-Retirement Benefits - Addi
Post-Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||
Contributions to the Compensation Plan by the employer | $ 0.9 | $ 0.5 |
Contributions to the Compensation Plan by the employer in remainder of fiscal year 2017 | $ 2.7 |
Share Repurchase Program (Detai
Share Repurchase Program (Detail) - USD ($) | 26 Months Ended | |
Sep. 30, 2016 | Aug. 31, 2014 | |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 50,000,000 | |
Purchase of common stock, shares | 1,316,587 | |
Purchase of Treasury Stock | $ 19,000,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | $ 782,338 |
Other comprehensive loss before reclassifications | (582) |
Amounts reclassified from AOCI | (112) |
Net current-period other comprehensive loss | (694) |
Ending Balance | 800,557 |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | (6,185) |
Other comprehensive loss before reclassifications | (582) |
Net current-period other comprehensive loss | (582) |
Ending Balance | (6,767) |
Defined Benefit Pension Plan | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | (7,832) |
Amounts reclassified from AOCI | (112) |
Net current-period other comprehensive loss | (112) |
Ending Balance | (7,944) |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | (14,017) |
Ending Balance | $ (14,711) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event | Oct. 17, 2016 |
Subsequent Event [Line Items] | |
Capital lease, agreement date | Oct. 17, 2016 |
Capital lease, effective date | Jan. 1, 2017 |