Coherent (COHR) 10-Q 8 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2018	Feb. 05, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
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 Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		63,394,256

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Current Assets
Cash and cash equivalents	$ 230,256	$ 247,038
Accounts receivable - less allowance for doubtful accounts of $2,108 at December 31, 2018 and $837 at June 30, 2018	227,006	215,032
Inventories	291,099	248,268
Prepaid and refundable income taxes	8,107	7,845
Prepaid and other current assets	35,757	43,654
Total Current Assets	792,225	761,837
Property, plant & equipment, net	559,519	524,890
Goodwill	298,250	270,678
Other intangible assets, net	138,995	125,069
Investments	76,441	69,215
Deferred income taxes	3,314	2,046
Other assets	8,390	7,926
Total Assets	1,877,134	1,761,661
Current Liabilities
Current portion of long-term debt	20,000	20,000
Accounts payable	114,049	89,774
Accrued compensation and benefits	55,266	66,322
Accrued income taxes payable	16,525	17,392
Other accrued liabilities	44,185	42,979
Total Current Liabilities	250,025	236,467
Long-term debt	460,457	419,013
Deferred income taxes	28,078	27,241
Other liabilities	65,401	54,629
Total Liabilities	803,961	737,350
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 - 76,124,360 shares at December 31, 2018; 75,692,683 shares at June 30, 2018	367,195	351,761
Accumulated other comprehensive income (loss)	(18,918)	(3,780)
Retained earnings	890,915	836,064
Shareholders' equity excluding treasury stock	1,239,192	1,184,045
Treasury stock, at cost - 12,538,600 shares at December 31, 2018 and 12,395,791 shares at June 30, 2018	(166,019)	(159,734)
Total Shareholders' Equity	1,073,173	1,024,311
Total Liabilities and Shareholders' Equity	$ 1,877,134	$ 1,761,661

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,108	$ 837
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	76,124,360	75,692,683
Treasury stock, shares	12,538,600	12,395,791

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenues	$ 342,839	$ 281,470	$ 657,272	$ 542,973
Costs, Expenses and Other Expense (Income)
Cost of goods sold	211,333	172,075	401,859	327,605
Internal research and development	33,764	27,779	66,935	53,354
Selling, general and administrative	58,136	49,130	111,659	99,754
Interest expense	5,580	4,644	11,164	8,289
Other expense (income), net	(701)	(2,026)	(1,414)	(2,796)
Total Costs, Expenses & Other Expense (Income)	308,112	251,602	590,203	486,206
Earnings Before Income Taxes	34,727	29,868	67,069	56,767
Income Taxes	6,025	20,272	12,218	26,030
Net Earnings	$ 28,702	$ 9,596	$ 54,851	$ 30,737
Basic Earnings Per Share	$ 0.45	$ 0.15	$ 0.86	$ 0.49
Diluted Earnings Per Share	$ 0.44	$ 0.15	$ 0.83	$ 0.47

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 28,702	$ 9,596	$ 54,851	$ 30,737
Other comprehensive income (loss):
Foreign currency translation adjustments	(4,454)	4,085	(15,105)	15,182
Pension adjustment, net of taxes of ($24) and ($9) for the three and six months ended December 31, 2018, respectively, and $9 and $32 for the three and six months ended December 31, 2017, respectively	(85)	36	(33)	118
Comprehensive income	$ 24,163	$ 13,717	$ 39,713	$ 46,037

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Pension adjustment tax	$ (24)	$ 9	$ (9)	$ 32

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash Flows from Operating Activities
Net earnings	$ 54,851	$ 30,737
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	36,679	30,811
Amortization	7,820	7,414
Share-based compensation expense	9,277	7,868
Losses on foreign currency remeasurements and transactions	1,726	391
Earnings from equity investments	(2,767)	(1,617)
Deferred income taxes	(3,506)	10,114
Increase (decrease) in cash from changes in (net of effect of acquisitions):
Accounts receivable	(8,610)	(350)
Inventories	(39,588)	(23,414)
Accounts payable	22,777	4,831
Income taxes	(856)	1,487
Accrued compensation and benefits	(10,436)	(9,684)
Other operating net assets	20,839	1,081
Net cash provided by operating activities	88,206	59,669
Cash Flows from Investing Activities
Additions to property, plant & equipment	(74,368)	(77,623)
Purchases of businesses	(54,229)	(80,965)
Purchases of equity investments	(4,480)	(51,491)
Other investing activities	116	145
Net cash used in investing activities	(132,961)	(209,934)
Cash Flows from Financing Activities
Proceeds from issuance of 0.25% convertible senior notes due 2022		345,000
Proceeds from borrowings under Credit Facility	120,000	100,000
Payments on borrowings under Credit Facility	(85,000)	(262,000)
Proceeds from exercises of stock options	6,222	6,784
Payments on earnout arrangements	(3,540)
Payments in satisfaction of employees' minimum tax obligations	(6,350)	(3,608)
Purchases of treasury stock		(49,875)
Debt issuance costs		(10,061)
Net cash provided by financing activities	31,332	126,240
Effect of exchange rate changes on cash and cash equivalents	(3,359)	6,593
Net decrease in cash and cash equivalents	(16,782)	(17,432)
Cash and Cash Equivalents at Beginning of Period	247,038	271,888
Cash and Cash Equivalents at End of Period	230,256	254,456
Cash paid for interest	4,293	3,229
Cash paid for income taxes	14,527	12,907
Non-cash transactions:
Additions to property, plant & equipment included in accounts payable	$ 10,347	$ 5,915

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - 0.25% Convertible Senior Note Due 2022	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt instrument, interest rate	0.25%	0.25%
Debt instrument maturity date	Sep. 1, 2022

Condensed Consolidated Statem_6

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Dec. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock
Beginning Balance at Jun. 30, 2018	$ 1,024,311	$ 351,761	$ (3,780)	$ 836,064	$ (159,734)
Beginning Balance, shares at Jun. 30, 2018		75,693			(12,396)
Share-based and deferred compensation activities	9,149	$ 15,434			$ (6,285)
Share-based and deferred compensation activities (in shares)		431			(142)
Net earnings	54,851			54,851
Foreign currency translation adjustments	(15,105)		(15,105)
Pension adjustment, net of taxes of $(9)	(33)		(33)
Ending Balance at Dec. 31, 2018	$ 1,073,173	$ 367,195	$ (18,918)	$ 890,915	$ (166,019)
Ending Balance, shares at Dec. 31, 2018		76,124			(12,538)

Condensed Consolidated Statem_7

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Statement Of Stockholders Equity [Abstract]
Pension adjustment tax	$ (24)	$ 9	$ (9)	$ 32

Basis of Presentation

Basis of Presentation	6 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Note 1. Basis of Presentation The condensed consolidated financial statements of II-VI Incorporated (“II-VI”, the “Company”, “we”, “us” or “our”) for the three and six months ended December 31, 2018 and 2017 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 Current Report on Form 8-K dated December 27, 2018. The consolidated results of operations for the three and six months ended December 31, 2018 are not necessarily indicative of the results to be expected for the full fiscal year. The June 30, 2018 Condensed Consolidated Balance Sheet information was derived from the Company’s audited consolidated financial statements. Effective July 1, 2018, the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved Integrated Photonics, Inc. (“IPI”) from II-VI Photonics to II-VI Performance Products. All applicable segment information has been restated to reflect this change. Additionally, the Company renamed Laser Systems Group to II-VI Industrial Laser.

Recently Issued Financial Accou

Recently Issued Financial Accounting Standards	6 Months Ended
	Dec. 31, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Recently Issued Financial Accounting Standards	Note 2. Recently Issued Financial Accounting Standards Revenue Recognition Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on July 1, 2018 using the modified retrospective method of adoption. Adoption of the ASU did not require an adjustment to the opening balance of equity. The Company does not expect the standard to have a significant effect on its results of operations, liquidity or financial position in fiscal year 2019. The Company implemented processes and controls to ensure new contracts are reviewed for the appropriate accounting treatment and to generate the disclosures required under the new standard. For the disclosures required by this ASU, see Note 5. Revenue from Contracts with Customers. Other Adopted Pronouncements In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. With the adoption of this standard, the Company restated the prior periods ending June 30, 2018, 2017, and 2016. These restatements did not have a material effect on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This update changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update requires that when intra-entity asset transfers occur, the entity must recognize tax effects in the period in which the transfer occurs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The guidance clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flow. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This update requires entities to measure equity investments at fair value and recognize any changes in fair value in net income. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Pronouncements Currently Under Evaluation In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard will become effective for the Company’s fiscal year 2020, which begins on July 1, 2019. In July 2018, the FASB issued targeted improvements to this ASU in ASU 2018-11. This update provides entities with an optional transition method, which permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has elected to utilize the optional transition method. We have reviewed the requirements of this standard and have formulated a plan for implementation. We are currently evaluating our leasing arrangements and have selected a software repository to track all of our lease agreements to assist in the reporting and disclosures required by the standard. We will continue to assess and disclose the impact that this new guidance will have on our consolidated financial statements, disclosures and related controls, when known.

Pending Merger

Pending Merger	6 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Pending Merger	Note 3. II-VI and Finisar Corporation (“Finisar”) have entered into an Agreement and Plan of Merger, dated as of November 8, 2018 (the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, Mutation Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of II-VI will be merged with and into Finisar, and Finisar will continue as the surviving corporation in the merger and a wholly owned subsidiary of II-VI (the “Merger”). If the Merger is consummated, Finisar stockholders will be entitled to receive, at their election, consideration per share of common stock of Finisar (the “Finisar Common Stock”) consisting of (i) $26.00 in cash, without interest (the “Cash Election Consideration”), (ii) 0.5546 shares of II-VI common stock (the shares, the “II-VI Common Stock,” and the consideration, the “Stock Election Consideration”), or (iii) a combination of $15.60 in cash, without interest, and 0.2218 shares of II-VI Common Stock (the “Mixed Election Consideration,” and, together with the Cash Election Consideration and the Stock Election Consideration, the “Merger Consideration”). The Cash Election Consideration and the Stock Election Consideration are subject to proration adjustment pursuant to the terms of the Merger Agreement such that the aggregate Merger Consideration will consist of approximately 60% cash and approximately 40% II-VI Common Stock. At the effective time of the Merger (the “Effective Time”), each option granted pursuant to Finisar’s 2005 Stock Incentive Plan (as such plan has been further amended and restated) (each, a “Finisar Stock Option”) (or portion thereof) that is outstanding and unexercised as of immediately prior to the Effective Time (whether vested or unvested) will be cancelled and terminated and converted into the right to receive an amount of Mixed Election Consideration that would be payable to a holder of such number of shares of Finisar Common Stock equal to the quotient of (i) the product of (a) the excess, if any, of $26.00 over the exercise price per share of such Finisar Stock Option multiplied by divided by At the Effective Time, each restricted stock unit granted pursuant to Finisar’s 2005 Stock Incentive Plan (as such plan has been further amended and restated) (each, a “Finisar Restricted Stock Unit”) (or portion thereof) that is outstanding and subject to a performance-based vesting condition that relates solely to the value of Finisar Common Stock will, to the extent such Finisar Restricted Stock Unit vests in accordance with its terms in connection with the Merger (the “Participating RSUs”), be cancelled and extinguished and converted into the right to receive the Cash Election Consideration, the Stock Election Consideration or the Mixed Election Consideration at the election of the holder of such Participating RSUs, subject to proration adjustment. At the Effective Time, each Finisar Restricted Stock Unit (or portion thereof) that is outstanding and unvested and does not vest in accordance with its terms in connection with the Merger and is either (x) subject to time-based vesting requirements only or (y) subject to a performance-based vesting condition other than the value of Finisar Common Stock will be assumed by II-VI (each, an “Assumed RSU”). Each Assumed RSU will be subject to substantially the same terms and conditions as applied to the related Finisar Restricted Stock Unit immediately prior to the Effective Time, including the vesting schedule (and the applicable performance-vesting conditions in the case of a grant contemplated by clause (y) of the preceding sentence) and any provisions for accelerated vesting applicable thereto, except that the number of shares of II-VI Common Stock subject to each Assumed RSU will be equal to the product of (i) the number of shares of Finisar Common Stock underlying such unvested Finisar Restricted Stock Unit award as of immediately prior to the Effective Time multiplied by (ii) the sum of (a) 0.2218 plus (b) the quotient obtained by dividing (1) $15.60 by (2) the volume weighted average price per share of II-VI Common Stock (rounded to the nearest cent) on the Nasdaq Global Select Market for the ten consecutive trading days ending on (and including) the third trading day immediately prior to the Effective Time (with the resulting number, rounded down to the nearest whole share). The completion of the Merger is subject to the satisfaction or waiver of certain customary closing conditions. II-VI filed with the Securities and Exchange Commission a registration statement on Form S-4 relating to the Merger, and that registration statement became effective in accordance with the provisions of Section 8(a) of the Securities Act of 1933, as amended, on February 7, 2019. Subject to the satisfaction or waiver of each of the closing conditions, II-VI and Finisar expect that the Merger will be completed approximately in the middle of 2019. However, it is possible that factors outside the control of both companies could result in the Merger being completed at a different time or not at all. On November 8, 2018, in connection with its entry into the Merger Agreement, II-VI entered into a commitment letter (together with a related fee letter) with Bank of America, N.A. (“Bank of America”), which was subsequently amended and restated on December 7, 2018 and on December 14, 2018 (together with one or more related fee letters, the “Commitment Letter”). Subject to the terms and conditions set forth in the Commitment Letter, the lender parties thereto (the “Lending Parties”) have severally committed to provide 100% of up to $2.425 billion in aggregate principal amount of senior secured credit facilities of II-VI (the “II-VI Senior Credit Facilities”) comprised of (i) a “term a” loan facility of up to $1.0 billion, a portion of which will be available after the closing of the Merger on a delayed draw basis, (ii) a “term b” loan facility of up to $975.0 million and (iii) a revolving credit facility of up to $450.0 million.

Acquisitions

Acquisitions	6 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Acquisitions	Note 4 . Acquisitions CoAdna Holdings, Inc. In September 2018, the Company acquired CoAdna Holdings, Inc. (“CoAdna”), a previously publicly traded company on the Taiwan Stock Exchange with headquarters in Sunnyvale, CA, in a cash transaction valued at approximately $85.0 million, inclusive of cash acquired of approximately $42.2 million at closing. CoAdna is a global leader in wavelength selective switches (“WSS”) based on its patented liquid crystal platform. CoAdna operates within the Company’s II-VI Photonics operating segment. Due to the timing of the acquisition, the Company is still in the process of measuring the fair value of assets acquired and liabilities assumed, including tangible and intangible assets and related deferred income taxes. The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of CoAdna within one year from the date of acquisition ($000): Assets Accounts receivable $ 5,684 Inventories 6,189 Prepaid and other assets 2,866 Property, plant & equipment 3,181 Intangible assets 16,072 Goodwill 24,844 Total assets acquired $ 58,836 Liabilities Accounts payable $ 4,006 Other accrued liabilities 2,717 Accrued income taxes 5,791 Deferred tax liabilities 3,506 Total liabilities assumed 16,020 Net assets acquired $ 42,816 The goodwill of $24.8 million is included in the II-VI Photonics segment and is attributed to the expected synergies and the assembled workforce of CoAdna. None of the goodwill is deductible for income tax purposes. The fair value of accounts receivable acquired was $5.7 million and the gross contractual amount being $5.7 million. The Company expensed transaction costs for six months ended December 31, 2018 of $1.9 million. The amount of revenues of CoAdna included in the Company’s Condensed Consolidated Statement of Earnings for the three and six months ended December 31, 2018, was $7.1 million and $10.1 million, respectively. The amount of net loss of CoAdna included in the Company’s Condensed Consolidated Statement of Earnings for the three and six months ended December 31, 2018 was immaterial. Purchase of a Product Line In November 2018, the Company acquired certain assets of a product line in a cash transaction valued at approximately $10.0 million. In conjunction with the acquisition of the product line, the Company acquired inventory of $0.2 million, equipment of $2.3 million, acquired technology of $6.3 million, and recorded goodwill of $1.2 million. The goodwill is deductible for income tax purposes. The goodwill is recorded in the Photonics segment and is attributed to the workforce acquired as part of the transaction. Transaction expenses for this acquisition were insignificant for the three and six months ended December 31, 2018.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Dec. 31, 2018
Revenue From Contract With Customer [Abstract]
Revenue from Contracts with Customers	Note 5 . Revenue from Contracts with Customers As discussed in Note 2, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), on July 1, 2018 using the modified retrospective method of adoption. Adoption of the ASU did not require an adjustment to the opening balance of equity and did not materially change the Company's amount and timing of recognition of revenues. The Company applied the ASU only to contracts that were not completed as of July 1, 2018. The Company has elected to exclude all taxes from the measurement of the transaction price. Revenue under ASC 606 is recognized when or as obligations under the terms of a contract with the Company’s customer have been satisfied and control has transferred to the customer. For contracts held with commercial customers, the majority of the Company’s performance obligations, ownership of the goods and associated revenue are transferred to customers at a point in time, generally upon shipment of a product (“Direct Ship Parts”) to the customer or receipt of the product by the customer and without significant judgments. The majority of contracts typically require payment within 30 to 60 days upon transfer of ownership to the customer. Contracts with the United States (“U.S.”) government through its prime contractors are typically for products or services with no alternative future use to the Company with an enforceable right to payment for performance completed to date, whereas commercial contracts typically have alternative use. Customized products with no alternative future use to the Company with an enforceable right to payment for performance completed to date are recorded over time utilizing the output method of units delivered. The Company considers this to be a faithful depiction of the transfer to the customer of revenue over time due to short cycle time and immaterial work-in-process balances. The majority of contracts typically require payment within 30 to 60 days upon transfer of ownership to the customer. Service revenue includes repairs, non-recurring engineering, tolling arrangements and installation. Repairs, tolling and installation activities are usually completed in a short period of time (normally less than one month) and therefore recorded at a point in time when the services are completed. Non-recurring engineering arrangements are typically recognized over time under the time and material practical expedient as the entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date. The majority of contracts typically require payment within 60 days. The Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year. Because the Company’s performance obligations have been satisfied and an unconditional right to consideration exists as of the balance sheet date, the Company has recognized amounts due from contracts with customers of $227.0 million as accounts receivable, net of allowance for doubtful accounts within the Condensed Consolidated Balance Sheet. Costs to Obtain and Fulfill a Contract Under ASC 606, the Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administration expenses. The Company has elected to recognize the costs for freight and shipping when control over products has transferred to the customer as an expense in cost of sales. The Company monitors and tracks the amount of product returns and reduces revenue at the time of shipment for the estimated amount of future returns, based on historical experience. The Company makes estimates evaluating its allowance for doubtful accounts. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon its historical experience and any specific customer collection issues that it has identified. The Company offers an assurance-type limited warranty that products will be free from defects in materials and workmanship. The warranty is typically one year or the industry standard in length and is limited to either (1) the replacement or repair of the product or (2) a credit against future purchases. The products are not sold with a right of return. Disaggregation of Revenue The following tables summarize disaggregated revenue by revenue market, and product for the three and six months ended December 31, 2018 ($000): Three Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Total Commercial Direct Ship Parts $ 100,894 $ 157,965 $ 39,804 $ 298,663 Services 1,363 1,729 1,526 4,618 U.S. Government Direct Ship Parts $ 3,320 $ - $ 30,187 $ 33,507 Services - - 6,051 6,051 Total Revenues $ 105,577 $ 159,694 $ 77,568 $ 342,839 Six Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Total Commercial Direct Ship Parts $ 203,764 $ 291,330 $ 81,801 $ 576,895 Services 2,253 3,520 4,631 10,404 U.S. Government Direct Ship Parts $ 5,735 $ - $ 54,952 $ 60,687 Services - - 9,286 9,286 Total Revenues $ 211,752 $ 294,850 $ 150,670 $ 657,272

Other Investments

Other Investments	6 Months Ended
	Dec. 31, 2018
Equity Method Investments And Joint Ventures [Abstract]
Other Investments	Note 6 . Other Investments Equity Investment in Privately-Held Company In November 2017, the Company acquired a 93.8% equity investment in a privately-held company (“Equity Investment”) for $51.5 million. In addition, the Company paid $0.2 million for a working capital adjustment to that purchase price. The Company’s pro-rata share of earnings from this investment for the three and six months ended December 31, 2018 was $0.9 million and $2.0 million, respectively. The Company’s pro rata share of earnings from this investment for the three and six months ended December 31, 2017 was $1.1 million and was recorded in other expense (income), net in the Condensed Consolidated Statement of Earnings. This investment is accounted for under the equity method of accounting. The following table summarizes the Company's equity in this nonconsolidated investment: Interest Ownership % as of Equity as of Location Type December 31, 2018 December 31, 2018 ($000) USA Equity Investment 93.8% $ 58,376 The Equity Investment has been determined to be a variable interest entity because the Company has an overall 93.8% economic position in the investee, comprising a significant portion of its capitalization, but has only a 25% voting interest. The Company’s obligation to receive rewards and absorb expected losses is disproportionate to its voting interest. The Company is not the primary beneficiary because it does not have the power to direct the activities of the equity investment that most significantly impact its economic performance. Certain business decisions, including decisions with respect to operating budgets, material capital expenditures, indebtedness, significant acquisitions or dispositions, and strategic decisions, require the approval of owners holding a majority percentage in the Equity Investment. Beginning on the date it was acquired, the Company accounted for its interest as an equity method investment as the Company has the ability to exercise significant influence over operating and financial policies of the Equity Investment. As of December 31, 2018 and June 30, 2018, the Company’s maximum financial statement exposure related to this Equity Investment was approximately $58.4 million and $56.3 million, respectively, which is included in Investments on the Condensed Consolidated Balance Sheet as of December 31, 2018. The Company has the right to purchase all of the outstanding interest of each of the minority equity holders and the minority equity holders have the right to cause the Company to purchase all of their outstanding interests at any time on or after the third anniversary of the investment, or earlier upon certain events. The purchase price is equal to the greater of: (a) (i) the product of the aggregate trailing 12-month revenues of the equity investment preceding the date of purchase, multiplied by (ii) a factor of 2.9 multiplied by (iii) a factor of 0.723, multiplied by (iv) the percentage interest owned by each minority equity holder and (b) $966,666. The Company performed a Monte Carlo simulation to estimate the fair value of the net put option at the investment date and recorded a liability of $2.2 million in Other long-term liabilities in the Condensed Consolidated Balance Sheet in accordance with ASC 815-10, Derivatives and Hedging. The fair value of the net put option is adjusted as necessary on a quarterly basis, with any changes in the fair value recorded through earnings. The change in fair value of the net purchase option from the investment date to December 31, 2018 was not material. Guangdong Fuxin Electronic Technology Equity Investment The Company has an equity investment of 20.2% in Guangdong Fuxin Electronic Technology, based in Guangdong Province, China, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at December 31, 2018 and June 30, 2018 was $13.6 million and $12.9 million, respectively. During the three and six months ended December 31, 2018, the Company’s pro-rata share of earnings from this investment was $0.2 million and $0.7 million, respectively. During the three and six months ended December 31, 2017, the Company’s pro-rata share of earnings from this investment was $0.2 million and $0.5 million, respectively. Equity earnings were recorded in other expense (income), net in the Condensed Consolidated Statements of Earnings. Other Equity Investment During the quarter ended September 30, 2018, the Company acquired a 10% equity investment in a privately-held company for $4.5 million. The Company has determined that the equity interest does not give it the ability to exercise significant influence or joint control. Therefore, the Company will not account for this investment under the equity method of accounting. Under ASU 2016-01, Financial Instruments, the Company has elected the measurement alternative as the investment does not have a readily determinable fair value. Under the alternative, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investment of the issuer for which there were none during the quarter ended December 31, 2018.

Inventories

Inventories	6 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventories	Note 7 . Inventories The components of inventories were as follows ($000): December 31, June 30, 2018 2018 Raw materials $ 118,807 $ 97,502 Work in progress 93,375 83,002 Finished goods 78,917 67,764 $ 291,099 $ 248,268

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Property, Plant and Equipment	Note 8 . Property, Plant and Equipment Property, plant and equipment consists of the following ($000): December 31, June 30, 2018 2018 Land and improvements $ 8,895 $ 9,072 Buildings and improvements 226,229 216,507 Machinery and equipment 694,191 633,934 Construction in progress 84,869 88,350 1,014,184 947,863 Less accumulated depreciation (454,665 ) (422,973 ) $ 559,519 $ 524,890

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Note 9 . Goodwill and Other Intangible Assets Effective July 1, 2018, the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved IPI from II-VI Photonics to II-VI Performance Products. All applicable information has been restated to reflect this change. The Company used the relative fair value method to reallocate goodwill to the associated reporting units in connection with the realignment of its composition of operating segments. Changes in the carrying amount of goodwill were as follows ($000): Six Months Ended December 31, 2018 II-VI Laser II-VI II-VI Performance Solutions Photonics Products Total Balance-beginning of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 Goodwill acquired - 26,015 4,001 30,016 Foreign currency translation (831 ) (1,613 ) - (2,444 ) Balance-end of period $ 97,906 $ 134,072 $ 66,272 $ 298,250 The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of December 31, 2018 and June 30, 2018 were as follows ($000): December 31, 2018 June 30, 2018 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 82,552 $ (35,780 ) $ 46,772 $ 66,812 $ (32,979 ) $ 33,833 Trademarks 15,765 (1,536 ) 14,229 15,882 (1,471 ) 14,411 Customer Lists 132,923 (54,929 ) 77,994 127,603 (50,792 ) 76,811 Other 1,572 (1,572 ) - 1,573 (1,559 ) 14 Total $ 232,812 $ (93,817 ) $ 138,995 $ 211,870 $ (86,801 ) $ 125,069 As a result of the July 1, 2018 segment realignment, the Company reviewed the recoverability of the carrying value of goodwill at its reporting units. The Company performed a quantitative test to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. The Company did not record any impairment of goodwill or long-lived assets, as the quantitative assessment did not indicate deterioration in the fair value of its reporting units. In conjunction with the acquisition of CoAdna, the Company recorded $9.8 million attributed to the value of technology and patents and $6.3 million of customer lists. The intangibles were recorded based on the Company’s preliminary purchase price allocation utilizing either a discounted cash flow or relief from royalty method to derive the fair value. The valuation is expected to be finalized within one year from the date of acquisition. In conjunction with the acquisition of the product line, the Company recorded $6.3 million of acquired technology. The acquired technology was recorded based on the Company’s preliminary purchase price allocation utilizing a relief from royalty method to derive the fair value. The valuation is expected to be finalized within one year of the date of acquisition. Technology and patents are being amortized over a range of 60 to 240 months, with a weighted average remaining life of approximately 88 months. Customer lists are being amortized over a range of approximately 120 to 240 months with a weighted average remaining life of approximately 134 months. The gross carrying amount of trademarks includes $14.0 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 foreign subsidiaries. At December 31, 2018, the estimated amortization expense for the existing intangible assets for each of the five succeeding fiscal years is as follows ($000): Fiscal Year Ending June 30, Amount Remaining 2019 $ 8,300 2020 16,500 2021 15,200 2022 13,500 2023 13,100

Debt

Debt	6 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Debt	Note 10 . Debt The components of debt for the periods indicated were as follows ($000): December 31, June 30, 2018 2018 0.25% convertible senior notes $ 345,000 $ 345,000 Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount (50,155 ) (56,409 ) Term loan, interest at LIBOR, as defined, plus 1.75% 55,000 65,000 Line of credit, interest at LIBOR, as defined, plus 1.75% 125,000 80,000 Credit facility unamortized debt issuance costs (943 ) (1,126 ) Yen denominated line of credit, interest at LIBOR, as defined, plus 1.75% 2,721 2,714 Note payable assumed in IPI acquisition 3,834 3,834 Total debt 480,457 439,013 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 460,457 $ 419,013 0.25% Convertible Senior Notes On August 24, 2017, the Company entered into a purchase agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several initial purchasers named therein (collectively, the “Initial Purchasers”), to issue and sell $300 million aggregate principal amount of our 0.25% convertible senior notes due 2022 (the "Notes") in a private placement to qualified institutional buyers within the meaning of Rule 144A under the Securities Act of 1933, as amended. In addition, we granted the Initial Purchasers a 30-day option to purchase up to an additional $45 million aggregate principal amount of the Notes (the “Over-Allotment Option”). As a result of our cash conversion option, the Company separately accounted for the value of the embedded conversion option as a debt discount. The value of the embedded conversion option was determined based on the estimated fair value of the debt without the conversion feature, which was determined using an expected present value technique (income approach) to estimate the fair value of similar nonconvertible debt; the debt discount is being amortized as additional non-cash interest expense over the term of the Notes using the effective interest method. The equity component, which amounts to $56.4 million, net of issuance costs of $1.7 million, is not remeasured as long as it continues to meet the conditions for equity classification. The initial conversion rate is 21.25 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of $47.06 per share of common stock. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. The if-converted value of the Notes amounted to $238.0 million as of December 31, 2018 and $318.5 million as of June 30, 2018 (based on the Company’s closing stock price on the last trading day of the fiscal periods then ended). As of December 31, 2018, the Notes are not yet convertible based upon the Notes’ conversion features. Holders of the Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than cancelled, extinguished or forfeited. The following tables set forth total interest expense recognized related to the Notes for the three and six months ended December 31, 2018 and 2017: Three Months Ended December 31, 2018 Six Months Ended December 31, 2018 0.25% contractual coupon $ 221 $ 441 Amortization of debt discount and debt issuance costs including initial purchaser discount 3,145 6,255 Interest expense $ 3,366 $ 6,696 Three Months Ended December 31, 2017 Six Months Ended December 31, 2017 0.25% contractual coupon $ 219 $ 297 Amortization of debt discount and debt issuance costs including initial purchaser discount 2,935 4,043 Interest expense $ 3,154 $ 4,340 The effective interest rate on the liability component for both periods presented was 4.5%. The unamortized discount amounted to $43.8 million as of December 31, 2018 and is being amortized over 4 years. Amended Credit Facility On July 28, 2016, the Company amended and restated its existing credit agreement. The Third Amended and Restated Credit Agreement (the “Amended Credit Facility”) provides for a revolving credit facility of $325 million, as well as a $100 million term loan. The term loan is being repaid in consecutive quarterly principal payments on the first business day of each January, April, July and October, with the first payment having commenced on October 1, 2016, as follows: (i) twenty consecutive quarterly installments of $5 million and (ii) a final installment of all remaining principal due and payable on the maturity date of July 27, 2021. Amounts borrowed under the revolving credit facility are due and payable on the maturity date. The Amended Credit Facility is unsecured, but is guaranteed by each existing and subsequently acquired or organized wholly-owned domestic subsidiary of the Company. The Company has the option to request an increase to the size of the revolving credit facility in an aggregate additional amount not to exceed $100 million. The Amended Credit Facility has a five-year term through July 27, 2021 and has an interest rate of either a Base Rate Option or a Euro-Rate Option, plus an Applicable Margin, as defined in the agreement governing the Amended Credit Facility. If the Base Rate option is selected for a borrowing, the Applicable Margin is 0.00% to 1.25% and if the Euro-Rate Option is selected for a borrowing, the Applicable Margin is 1.00% to 2.25%. The Applicable Margin is based on the ratio of the Company’s consolidated indebtedness to consolidated EBITDA. Additionally, the Credit Facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of December 31, 2018, the Company was in compliance with all financial covenants under its Amended Credit Facility. Yen Loan The Company’s Yen denominated line of credit is a 500 million Yen (approximately $4.5 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 1.75%. At December 31, 2018 and June 30, 2018, the Company had 300 million Yen borrowed. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of December 31, 2018, the Company was in compliance with all financial covenants under its Yen facility. Note Payable In conjunction with the acquisition of IPI, the Company assumed a non-interest bearing note payable owed to a major customer of IPI. The agreement if not terminated early by either party is payable in full in January 2020. Aggregate Availability The Company had aggregate availability of $201.4 million and $246.4 million under its lines of credit as of December 31, 2018 and June 30, 2018, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. The total outstanding letters of credit supported by these credit facilities were $0.4 million as of December 31, 2018 and June 30, 2018. Weighted Average Interest Rate The weighted average interest rate of total borrowings was 1.7% and 1.4% for the six months ended December 31, 2018 and 2017, respectively. Remaining Annual Principal Payments Remaining annual principal payments under the Company’s existing credit obligations from December 31, 2018 were as follows: U.S. Dollar Term Yen Line Line of Note Convertible Period Loan of Credit Credit Payable Notes Total Year 1 $ 20,000 $ - $ - $ - $ - $ 20,000 Year 2 20,000 2,721 - 3,834 - 26,555 Year 3 15,000 - 125,000 - - 140,000 Year 4 - - - - 345,000 345,000 Year 5 - - - - - - Total $ 55,000 $ 2,721 $ 125,000 $ 3,834 $ 345,000 $ 531,555

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 1 1 . Income Taxes The Company’s year-to-date effective income tax rate at December 31, 2018 and 2017 was 18.2% and 45.9%, respectively. The variations between the Company’s effective tax rate and the U.S. statutory rate of 21% were primarily due to the impact of the U.S. enacted tax legislation and earnings generated from the Company’s foreign operations, which are subject to income taxes at lower statutory rates. The variation in the Company’s year-to-date effective income tax rate was primarily due to one-time charges related to the Tax Cuts and Jobs Act during the six months ended December 31, 2017. U.S. GAAP prescribes the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements which includes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of December 31, 2018 and June 30, 2018, the Company’s gross unrecognized income tax benefit was $14.0 million and $9.9 million, respectively. The Company has classified the uncertain tax positions as noncurrent income tax liabilities, as the amounts are not expected to be paid within one year. If recognized, $5.9 million of the gross unrecognized tax benefits at December 31, 2018 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 $0.8 million and $0.6 million, at December 31, 2018 and June 30, 2018, respectively. Fiscal years 2015 to 2019 remain open to examination by the U.S. Internal Revenue Service, fiscal years 2014 to 2019 remain open to examination by certain state jurisdictions, and fiscal years 2009 to 2019 remain open to examination by certain foreign taxing jurisdictions. The Company is currently under examination for the U.S. Federal income tax return for the year ended June 30, 2016; certain subsidiary companies in the Philippines for the year ended June 30, 2017; Germany for the years ended June 2012 through June 2015; and New Jersey for the years ended 2014 through June 30, 2017. The Company believes its income tax reserves for these tax matters are adequate. U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act includes changes to the U.S. statutory federal tax rate and puts into effect the migration from a worldwide system of taxation to a territorial system, among other things. As of December 31, 2018, the Company completed its analysis of the impact of the Tax Act in accordance with U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118 (“SAB 118”) and the amounts are no longer considered provisional. The Company’s transition tax increased due to finalization of calculations and consideration of Notices and regulations issued by the U.S. Department of Treasury and the Internal Revenue Service; however, the increase is offset by available net operating loss and credit carryforwards which currently have a valuation allowance. Consequently, the tax expense reported is reduced by the release of the valuation allowance on the U.S. deferred tax assets, and as result, there was no material financial statement impact due to finalization of the provisional estimates recorded in the year ended June 30, 2018. Furthermore, the Tax Act includes certain changes such as introducing a new category of income, referred to as global intangible low tax income, related to earnings taxed at a low rate of foreign entities without a significant fixed asset base, and imposes additional limitations on the deductibility of interest and officer compensation. These changes are included in the Company’s 2019 fiscal year income tax expense.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Note 1 2 . Earnings Per Share The following table sets forth the computation of earnings per share for the periods indicated. Basic net income per share has been computed using the weighted average number of shares of Common Stock outstanding during the period. Diluted net income per share has been computed using the weighted average number of common shares outstanding during the period plus dilutive potential shares of Common Stock from (1) stock options, performance and restricted shares (under the treasury stock method) and (2) convertible debt (under the If Converted method) outstanding during the period. The Company’s convertible debt calculated under the If-Converted method was anti-dilutive for both the three and six months ended December 31, 2018 and was excluded from the calculation of earnings per share. ($000 except per share data): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Net earnings $ 28,702 $ 9,596 $ 54,851 $ 30,737 Divided by: Weighted average shares 63,588 62,302 63,504 62,523 Basic earnings per common share $ 0.45 $ 0.15 $ 0.86 $ 0.49 Net earnings $ 28,702 $ 9,596 $ 54,851 $ 30,737 Divided by: Weighted average shares 63,588 62,302 63,504 62,523 Dilutive effect of common stock equivalents 2,085 2,736 2,412 2,638 Diluted weighted average common shares 65,673 65,038 65,916 65,161 Diluted earnings per common share $ 0.44 $ 0.15 $ 0.83 $ 0.47 The following table presents potential shares of Common Stock excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive ($000): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Stock options and restricted shares 138 133 125 110 0.25% Convertible Senior Notes due 2022 7,331 7,331 7,331 7,331 Total anti-dilutive shares 7,469 7,464 7,456 7,441

Segment Reporting

Segment Reporting	6 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Segment Reporting	Note 1 3 . 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. As discussed in Note 1, the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved IPI from II-VI Photonics to II-VI Performance Products. All applicable segment information has been restated to reflect this change. In September and November 2018, the Company completed its acquisitions of CoAdna and an additional product line. See Note 4. Acquisitions. The operating results of these acquisitions have been reflected in the selected financial information of the Company’s II-VI Photonics segment since the date of the acquisitions. The accounting policies are consistent across each of the segments. To the extent possible, the Company’s corporate expenses and assets are allocated to the segments. The Company evaluates segment performance based upon reported segment operating income, which is defined as earnings before income taxes, interest and other income or expense. Eliminations and Other include eliminating inter-segment sales and transfers as well as transaction costs related to the Finisar transaction. The following tables summarize selected financial information of the Company’s operations by segment ($000): Three Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 105,577 $ 159,694 $ 77,568 $ - $ 342,839 Inter-segment revenues 13,632 2,440 6,059 (22,131 ) - Operating income (expense) 12,222 23,087 11,400 (7,103 ) 39,606 Interest expense - - - - (5,580 ) Other income (expense), net - - - - 701 Income taxes - - - - (6,025 ) Net earnings - - - - 28,702 Depreciation and amortization 10,626 6,462 5,241 - 22,329 Segment assets 697,948 697,856 481,331 - 1,877,134 Expenditures for property, plant & equipment 15,301 11,223 11,945 - 38,468 Investments - - 76,441 - 76,441 Three Months Ended December 31, 2017 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 105,033 $ 115,304 $ 61,133 $ - $ 281,470 Inter-segment revenues 6,887 5,497 6,320 (18,704 ) - Operating income (expense) 9,442 16,237 6,807 - 32,486 Interest expense - - - - (4,644 ) Other income (expense), net - - - - 2,026 Income taxes - - - - (20,272 ) Net earnings - - - - 9,596 Depreciation and amortization 8,829 5,669 4,911 - 19,409 Expenditures for property, plant & equipment 23,422 7,893 8,082 - 39,397 Six Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 211,752 $ 294,850 $ 150,670 $ - $ 657,272 Inter-segment revenues 27,185 5,336 11,721 (44,242 ) - Operating income (expense) 24,532 38,999 20,391 (7,103 ) 76,819 Interest expense - - - - (11,164 ) Other income (expense), net - - - - 1,414 Income taxes - - - - (12,218 ) Net earnings - - - - 54,851 Depreciation and amortization 21,473 12,661 10,365 - 44,499 Expenditures for property, plant & equipment 26,894 23,274 23,219 - 73,386 Six Months Ended December 31, 2017 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 192,969 $ 231,244 $ 118,760 $ - $ 542,973 Inter-segment revenues 14,067 8,360 12,310 (34,737 ) - Operating income (expense) 12,094 35,663 14,504 - 62,261 Interest expense - - - - (8,289 ) Other income (expense), net - - - - 2,796 Income taxes - - - - (26,030 ) Net earnings - - - - 30,737 Depreciation and amortization 17,053 11,176 9,996 - 38,225 Expenditures for property, plant & equipment 36,183 17,676 22,965 - 76,823

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Compensation	Note 1 4 . Share-Based Compensation The Company’s Board of Directors adopted the II-VI Incorporated 2018 Omnibus Incentive Plan (the “Plan”), which was approved by the Company’s 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 3,550,000 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 Six Months Ended December 31, 2018 2017 2018 2017 Stock Options and Cash-Based Stock Appreciation Rights $ 454 $ 2,062 $ 2,782 $ 4,525 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 2,007 2,181 4,799 4,744 Performance Share Awards and Cash-Based Performance Share Unit Awards 2,497 1,154 2,714 2,440 $ 4,958 $ 5,397 $ 10,295 $ 11,709

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Fair Value of Financial Instruments	Note 15. The FASB defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous markets for the asset and liability in an orderly transaction between market participants at the measurement date. The Company estimates fair value of its financial instruments utilizing an established three-level hierarchy in accordance with U.S. GAAP. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: • Level 1 – Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. • Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurements. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. At December 31, 2018, the Company had foreign currency forward contracts recorded at fair value. The fair values of these instruments were measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for credit risk, restrictions and other terms specific to the contracts. In February 2016, the Company entered into a contingent earnout arrangement which provides up to a maximum of $6.0 million of additional cash earnout opportunities based upon II-VI EpiWorks achieving certain agreed upon financial and operational targets for capacity, wafers output and gross margin, which if earned would be payable for the achievement of each specific annual target over the next three years. The Company paid the first and second years of the earnout amount of $3.5 million during the six months ended December 31, 2018. The fair values of the contingent earnout arrangements and the net put option were measured using valuations based upon other unobservable inputs that are significant to the fair value measurement (Level 3). The Company estimated the fair value of the 0.25% convertible notes based on quoted market prices as of the last trading day prior to December 31, 2018; however, the convertible notes have only a limited trading volume and as such this fair value estimate is not necessarily the value at which the convertible notes could be retired or transferred. The Company concluded that this fair value measurement should be categorized within Level 2. The carrying value of the convertible notes is net of unamortized discount and issuance costs. See Note 10. Debt for details on the Company’s debt facilities. The fair value and carrying value of the convertible notes were as follows at December 31, 2018 ($000): Fair Value Carrying Value Convertible notes $ 334,650 $ 294,845 The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis or for which fair value is disclosed for the periods presented ($000): Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 218 $ - $ 218 $ - Contingent earnout arrangements $ 3,697 $ - $ - $ 3,697 Net put option $ 2,024 $ - $ - $ 2,024 Fair Value Measurements at June 30, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 121 $ - $ 121 $ - Liabilities: Contingent earnout arrangements $ 5,405 $ - $ - $ 5,405 Net put option $ 2,024 $ - $ - $ 2,024 The Company’s policy is to report transfers into and out of Levels 1 and 2 of the fair value hierarchy at fair values as of the beginning of the period in which the transfers occur. There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy during the three months ended December 31, 2018. The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s Level 3 contingent earnout arrangements related to the Company’s acquisitions and the net put option relating to the equity investment acquired in November 2017 ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2018 $ 7,429 Contingent earnout arrangements: Payments (3,540 ) Changes in fair value recorded in other expense, (income) (765 ) Other earnout arrangements 2,597 Balance at December 31, 2018 $ 5,721 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 including its capital lease obligation are considered Level 2 among the fair value hierarchy and their principal amounts approximate fair value.

Post-Retirement Benefits

Post-Retirement Benefits	6 Months Ended
	Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]
Post-Retirement Benefits	Note 1 6 . 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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Service cost $ 953 $ 946 $ 1,891 $ 1,898 Interest cost 139 107 276 214 Expected return on plan assets (250 ) (213 ) (496 ) (428 ) Net amortization (109 ) 45 (42 ) 150 Net periodic pension costs $ 733 $ 885 $ 1,629 $ 1,834 The Company contributed $0.8 million and $1.6 million to the Swiss Plan during the three and six months ended December 31, 2018, and $1.0 million and $1.9 million during the three and six months ended December 31, 2017. The Company currently anticipates contributing an additional estimated amount of approximately $1.6 million to the Swiss Plan during the remainder of fiscal year 2019.

Share Repurchase Programs

Share Repurchase Programs	6 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Share Repurchase Programs	Note 17 . Share Repurchase Programs In August 2014, the Company’s Board of Directors authorized the Company to purchase up to $50 million of its Common Stock through a share repurchase program (the “Program”) that calls for shares to be purchased in the open market or in private transactions from time to time. The Program has no expiration and may be suspended or discontinued at any time. Shares purchased by the Company are retained as treasury stock and available for general corporate purposes. The Company did not repurchase share pursuant to this Program during the quarter ended December 31, 2018. Through December 31, 2018, the Company has cumulatively purchased 1,316,587 shares of its Common Stock pursuant to the Program for approximately $19.0 million.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Note 18 . Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (“AOCI”) by component, net of tax, for the six months ended December 31, 2018 were as follows ($000): Foreign Total Currency Defined Accumulated Translation Benefit Comprehensive Adjustment Pension Plan Income (Loss) AOCI - June 30, 2018 $ (1,308 ) $ (2,472 ) $ (3,780 ) Other comprehensive income before reclassifications (15,105 ) - (15,105 ) Amounts reclassified from AOCI - (33 ) (33 ) Net current-period other comprehensive income (15,105 ) (33 ) (15,138 ) AOCI - December 31, 2018 $ (16,413 ) $ (2,505 ) $ (18,918 )

Capital Lease

Capital Lease	6 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Capital Lease	Note 1 9 . Capital Lease The Company’s OptoElectronic Devices subsidiary entered into a capital lease related to a building in Warren, New Jersey. The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): Fiscal Year Ending June 30, Amount 2019 (remaining) 1,161 2020 2,355 2021 2,419 2022 2,486 2023 2,554 Thereafter 24,740 Total minimum lease payments $ 35,715 Less amount representing interest 10,880 Present value of capitalized payments $ 24,835 The current and long-term portion of the capital lease obligation was recorded in Other accrued liabilities and Other liabilities, respectively, in the Company’s Condensed Consolidated Balance Sheet as of December 31, 2018 and June 30, 2018. The present value of the minimum capital lease payments at inception was $25 million recorded in Property, Plant & Equipment, net, in the Company’s Condensed Consolidated Balance Sheet as of December 31, 2018, with associated depreciation being recorded over the 15-year life of the lease. During the three and six months ended December 31, 2018, the Company recorded $0.4 million and $0.8 million of depreciation expense associated with the capital leased asset.

Recently Issued Financial Acc_2

Recently Issued Financial Accounting Standards (Policies)	6 Months Ended
	Dec. 31, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Recently Issued Financial Accounting Standards	Revenue Recognition Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on July 1, 2018 using the modified retrospective method of adoption. Adoption of the ASU did not require an adjustment to the opening balance of equity. The Company does not expect the standard to have a significant effect on its results of operations, liquidity or financial position in fiscal year 2019. The Company implemented processes and controls to ensure new contracts are reviewed for the appropriate accounting treatment and to generate the disclosures required under the new standard. For the disclosures required by this ASU, see Note 5. Revenue from Contracts with Customers. Other Adopted Pronouncements In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. With the adoption of this standard, the Company restated the prior periods ending June 30, 2018, 2017, and 2016. These restatements did not have a material effect on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This update changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update requires that when intra-entity asset transfers occur, the entity must recognize tax effects in the period in which the transfer occurs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The guidance clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flow. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This update requires entities to measure equity investments at fair value and recognize any changes in fair value in net income. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Pronouncements Currently Under Evaluation In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard will become effective for the Company’s fiscal year 2020, which begins on July 1, 2019. In July 2018, the FASB issued targeted improvements to this ASU in ASU 2018-11. This update provides entities with an optional transition method, which permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has elected to utilize the optional transition method. We have reviewed the requirements of this standard and have formulated a plan for implementation. We are currently evaluating our leasing arrangements and have selected a software repository to track all of our lease agreements to assist in the reporting and disclosures required by the standard. We will continue to assess and disclose the impact that this new guidance will have on our consolidated financial statements, disclosures and related controls, when known.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Dec. 31, 2018
CoAdna Holdings, Inc.
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed	The following table presents the preliminary allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition, as the Company intends to finalize its accounting for the acquisition of CoAdna within one year from the date of acquisition ($000): Assets Accounts receivable $ 5,684 Inventories 6,189 Prepaid and other assets 2,866 Property, plant & equipment 3,181 Intangible assets 16,072 Goodwill 24,844 Total assets acquired $ 58,836 Liabilities Accounts payable $ 4,006 Other accrued liabilities 2,717 Accrued income taxes 5,791 Deferred tax liabilities 3,506 Total liabilities assumed 16,020 Net assets acquired $ 42,816

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Dec. 31, 2018
Disaggregation Of Revenue [Abstract]
Summary of Disaggregated Revenue by Revenue Market and Product	Disaggregation of Revenue The following tables summarize disaggregated revenue by revenue market, and product for the three and six months ended December 31, 2018 ($000): Three Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Total Commercial Direct Ship Parts $ 100,894 $ 157,965 $ 39,804 $ 298,663 Services 1,363 1,729 1,526 4,618 U.S. Government Direct Ship Parts $ 3,320 $ - $ 30,187 $ 33,507 Services - - 6,051 6,051 Total Revenues $ 105,577 $ 159,694 $ 77,568 $ 342,839 Six Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Total Commercial Direct Ship Parts $ 203,764 $ 291,330 $ 81,801 $ 576,895 Services 2,253 3,520 4,631 10,404 U.S. Government Direct Ship Parts $ 5,735 $ - $ 54,952 $ 60,687 Services - - 9,286 9,286 Total Revenues $ 211,752 $ 294,850 $ 150,670 $ 657,272

Other Investments (Tables)

Other Investments (Tables)	6 Months Ended
	Dec. 31, 2018
Nonconsolidated Investment
Schedule of Equity in Nonconsolidated Investment	The following table summarizes the Company's equity in this nonconsolidated investment: Interest Ownership % as of Equity as of Location Type December 31, 2018 December 31, 2018 ($000) USA Equity Investment 93.8% $ 58,376

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Components of Inventories	The components of inventories were as follows ($000): December 31, June 30, 2018 2018 Raw materials $ 118,807 $ 97,502 Work in progress 93,375 83,002 Finished goods 78,917 67,764 $ 291,099 $ 248,268

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consists of the following ($000): December 31, June 30, 2018 2018 Land and improvements $ 8,895 $ 9,072 Buildings and improvements 226,229 216,507 Machinery and equipment 694,191 633,934 Construction in progress 84,869 88,350 1,014,184 947,863 Less accumulated depreciation (454,665 ) (422,973 ) $ 559,519 $ 524,890

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Changes in Carrying Amount of Goodwill	Changes in the carrying amount of goodwill were as follows ($000): Six Months Ended December 31, 2018 II-VI Laser II-VI II-VI Performance Solutions Photonics Products Total Balance-beginning of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 Goodwill acquired - 26,015 4,001 30,016 Foreign currency translation (831 ) (1,613 ) - (2,444 ) Balance-end of period $ 97,906 $ 134,072 $ 66,272 $ 298,250
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 December 31, 2018 and June 30, 2018 were as follows ($000): December 31, 2018 June 30, 2018 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 82,552 $ (35,780 ) $ 46,772 $ 66,812 $ (32,979 ) $ 33,833 Trademarks 15,765 (1,536 ) 14,229 15,882 (1,471 ) 14,411 Customer Lists 132,923 (54,929 ) 77,994 127,603 (50,792 ) 76,811 Other 1,572 (1,572 ) - 1,573 (1,559 ) 14 Total $ 232,812 $ (93,817 ) $ 138,995 $ 211,870 $ (86,801 ) $ 125,069
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Fiscal Years	At December 31, 2018, the estimated amortization expense for the existing intangible assets for each of the five succeeding fiscal years is as follows ($000): Fiscal Year Ending June 30, Amount Remaining 2019 $ 8,300 2020 16,500 2021 15,200 2022 13,500 2023 13,100

Debt (Tables)

Debt (Tables)	6 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Components of Debt	The components of debt for the periods indicated were as follows ($000): December 31, June 30, 2018 2018 0.25% convertible senior notes $ 345,000 $ 345,000 Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount (50,155 ) (56,409 ) Term loan, interest at LIBOR, as defined, plus 1.75% 55,000 65,000 Line of credit, interest at LIBOR, as defined, plus 1.75% 125,000 80,000 Credit facility unamortized debt issuance costs (943 ) (1,126 ) Yen denominated line of credit, interest at LIBOR, as defined, plus 1.75% 2,721 2,714 Note payable assumed in IPI acquisition 3,834 3,834 Total debt 480,457 439,013 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 460,457 $ 419,013
Summary of Total Interest Expense Recognized	The following tables set forth total interest expense recognized related to the Notes for the three and six months ended December 31, 2018 and 2017: Three Months Ended December 31, 2018 Six Months Ended December 31, 2018 0.25% contractual coupon $ 221 $ 441 Amortization of debt discount and debt issuance costs including initial purchaser discount 3,145 6,255 Interest expense $ 3,366 $ 6,696 Three Months Ended December 31, 2017 Six Months Ended December 31, 2017 0.25% contractual coupon $ 219 $ 297 Amortization of debt discount and debt issuance costs including initial purchaser discount 2,935 4,043 Interest expense $ 3,154 $ 4,340
Remaining Annual Principal Payments of Credit Obligations	Remaining annual principal payments under the Company’s existing credit obligations from December 31, 2018 were as follows: U.S. Dollar Term Yen Line Line of Note Convertible Period Loan of Credit Credit Payable Notes Total Year 1 $ 20,000 $ - $ - $ - $ - $ 20,000 Year 2 20,000 2,721 - 3,834 - 26,555 Year 3 15,000 - 125,000 - - 140,000 Year 4 - - - - 345,000 345,000 Year 5 - - - - - - Total $ 55,000 $ 2,721 $ 125,000 $ 3,834 $ 345,000 $ 531,555

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Computation of Earnings Per Share	The following table sets forth the computation of earnings per share for the periods indicated. Basic net income per share has been computed using the weighted average number of shares of Common Stock outstanding during the period. Diluted net income per share has been computed using the weighted average number of common shares outstanding during the period plus dilutive potential shares of Common Stock from (1) stock options, performance and restricted shares (under the treasury stock method) and (2) convertible debt (under the If Converted method) outstanding during the period. The Company’s convertible debt calculated under the If-Converted method was anti-dilutive for both the three and six months ended December 31, 2018 and was excluded from the calculation of earnings per share. ($000 except per share data):
Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share	The following table presents potential shares of Common Stock excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive ($000): Three Months Ended Six Months Ended December 31, December 31, 2018 2017 2018 2017 Stock options and restricted shares 138 133 125 110 0.25% Convertible Senior Notes due 2022 7,331 7,331 7,331 7,331 Total anti-dilutive shares 7,469 7,464 7,456 7,441

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Financial Information of Company's Operation by Segment	The following tables summarize selected financial information of the Company’s operations by segment ($000): Three Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 105,577 $ 159,694 $ 77,568 $ - $ 342,839 Inter-segment revenues 13,632 2,440 6,059 (22,131 ) - Operating income (expense) 12,222 23,087 11,400 (7,103 ) 39,606 Interest expense - - - - (5,580 ) Other income (expense), net - - - - 701 Income taxes - - - - (6,025 ) Net earnings - - - - 28,702 Depreciation and amortization 10,626 6,462 5,241 - 22,329 Segment assets 697,948 697,856 481,331 - 1,877,134 Expenditures for property, plant & equipment 15,301 11,223 11,945 - 38,468 Investments - - 76,441 - 76,441 Three Months Ended December 31, 2017 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 105,033 $ 115,304 $ 61,133 $ - $ 281,470 Inter-segment revenues 6,887 5,497 6,320 (18,704 ) - Operating income (expense) 9,442 16,237 6,807 - 32,486 Interest expense - - - - (4,644 ) Other income (expense), net - - - - 2,026 Income taxes - - - - (20,272 ) Net earnings - - - - 9,596 Depreciation and amortization 8,829 5,669 4,911 - 19,409 Expenditures for property, plant & equipment 23,422 7,893 8,082 - 39,397 Six Months Ended December 31, 2018 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 211,752 $ 294,850 $ 150,670 $ - $ 657,272 Inter-segment revenues 27,185 5,336 11,721 (44,242 ) - Operating income (expense) 24,532 38,999 20,391 (7,103 ) 76,819 Interest expense - - - - (11,164 ) Other income (expense), net - - - - 1,414 Income taxes - - - - (12,218 ) Net earnings - - - - 54,851 Depreciation and amortization 21,473 12,661 10,365 - 44,499 Expenditures for property, plant & equipment 26,894 23,274 23,219 - 73,386 Six Months Ended December 31, 2017 II-VI II-VI Laser II-VI Performance Eliminations & Solutions Photonics Products Other Total Revenues $ 192,969 $ 231,244 $ 118,760 $ - $ 542,973 Inter-segment revenues 14,067 8,360 12,310 (34,737 ) - Operating income (expense) 12,094 35,663 14,504 - 62,261 Interest expense - - - - (8,289 ) Other income (expense), net - - - - 2,796 Income taxes - - - - (26,030 ) Net earnings - - - - 30,737 Depreciation and amortization 17,053 11,176 9,996 - 38,225 Expenditures for property, plant & equipment 36,183 17,676 22,965 - 76,823

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Dec. 31, 2018
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 Six Months Ended December 31, 2018 2017 2018 2017 Stock Options and Cash-Based Stock Appreciation Rights $ 454 $ 2,062 $ 2,782 $ 4,525 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 2,007 2,181 4,799 4,744 Performance Share Awards and Cash-Based Performance Share Unit Awards 2,497 1,154 2,714 2,440 $ 4,958 $ 5,397 $ 10,295 $ 11,709

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Dec. 31, 2018
Summary of Fair Value and Carrying Value of Convertible Notes	The fair value and carrying value of the convertible notes were as follows at December 31, 2018 ($000): Fair Value Carrying Value Convertible notes $ 334,650 $ 294,845
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 or for which fair value is disclosed for the periods presented ($000): Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs December 31, 2018 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 218 $ - $ 218 $ - Contingent earnout arrangements $ 3,697 $ - $ - $ 3,697 Net put option $ 2,024 $ - $ - $ 2,024 Fair Value Measurements at June 30, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 121 $ - $ 121 $ - Liabilities: Contingent earnout arrangements $ 5,405 $ - $ - $ 5,405 Net put option $ 2,024 $ - $ - $ 2,024
EpiWorks
Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangements Related to Company’s Acquisitions	The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s Level 3 contingent earnout arrangements related to the Company’s acquisitions and the net put option relating to the equity investment acquired in November 2017 ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2018 $ 7,429 Contingent earnout arrangements: Payments (3,540 ) Changes in fair value recorded in other expense, (income) (765 ) Other earnout arrangements 2,597 Balance at December 31, 2018 $ 5,721

Post-Retirement Benefits (Table

Post-Retirement Benefits (Tables)	6 Months Ended
	Dec. 31, 2018
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 Six Months Ended December 31, December 31, 2018 2017 2018 2017 Service cost $ 953 $ 946 $ 1,891 $ 1,898 Interest cost 139 107 276 214 Expected return on plan assets (250 ) (213 ) (496 ) (428 ) Net amortization (109 ) 45 (42 ) 150 Net periodic pension costs $ 733 $ 885 $ 1,629 $ 1,834

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax	The changes in accumulated other comprehensive income (“AOCI”) by component, net of tax, for the six months ended December 31, 2018 were as follows ($000): Foreign Total Currency Defined Accumulated Translation Benefit Comprehensive Adjustment Pension Plan Income (Loss) AOCI - June 30, 2018 $ (1,308 ) $ (2,472 ) $ (3,780 ) Other comprehensive income before reclassifications (15,105 ) - (15,105 ) Amounts reclassified from AOCI - (33 ) (33 ) Net current-period other comprehensive income (15,105 ) (33 ) (15,138 ) AOCI - December 31, 2018 $ (16,413 ) $ (2,505 ) $ (18,918 )

Capital Lease (Tables)

Capital Lease (Tables)	6 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease	The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): Fiscal Year Ending June 30, Amount 2019 (remaining) 1,161 2020 2,355 2021 2,419 2022 2,486 2023 2,554 Thereafter 24,740 Total minimum lease payments $ 35,715 Less amount representing interest 10,880 Present value of capitalized payments $ 24,835

Pending Merger - Additional Inf

Pending Merger - Additional Information (Detail) - USD ($)	Dec. 14, 2018	Nov. 08, 2018	Jul. 28, 2016
Revolving Credit Facility
Business Acquisition [Line Items]
Aggregate principal amount			$ 325,000,000
Finisar Corporation
Business Acquisition [Line Items]
Percentage of aggregate consideration in cash		60.00%
Percentage of aggregate consideration in stock		40.00%
Finisar Corporation | Senior Secured Credit Facility | Bank of America, N.A.
Business Acquisition [Line Items]
Commitment fee percentage	100.00%
Finisar Corporation | Term A Loan Facility | Bank of America, N.A.
Business Acquisition [Line Items]
Aggregate principal amount	$ 1,000,000,000
Finisar Corporation | Term B Loan Facility | Bank of America, N.A.
Business Acquisition [Line Items]
Aggregate principal amount	975,000,000
Finisar Corporation | Revolving Credit Facility | Bank of America, N.A.
Business Acquisition [Line Items]
Aggregate principal amount	450,000,000
Finisar Corporation | Maximum | Senior Secured Credit Facility | Bank of America, N.A.
Business Acquisition [Line Items]
Aggregate principal amount	$ 2,425,000,000
Finisar Corporation | Restricted Stock Units (RSUs)
Business Acquisition [Line Items]
Amount per share to be received		$ 15.60
Number of shares to be received		0.2218
Finisar Corporation | 2005 Stock Incentive Plan
Business Acquisition [Line Items]
Amount per share to be received		$ 26
Description of stock transaction		At the effective time of the Merger (the “Effective Time”), each option granted pursuant to Finisar’s 2005 Stock Incentive Plan (as such plan has been further amended and restated) (each, a “Finisar Stock Option”) (or portion thereof) that is outstanding and unexercised as of immediately prior to the Effective Time (whether vested or unvested) will be cancelled and terminated and converted into the right to receive an amount of Mixed Election Consideration that would be payable to a holder of such number of shares of Finisar Common Stock equal to the quotient of (i) the product of (a) the excess, if any, of $26.00 over the exercise price per share of such Finisar Stock Option multiplied by (b) the number of shares of Finisar Common Stock subject to such Finisar Stock Option, divided by (ii) $26.00.
Cash Election Consideration | Finisar Corporation
Business Acquisition [Line Items]
Amount per share to be received		$ 26
Stock Election Consideration | Finisar Corporation
Business Acquisition [Line Items]
Number of shares to be received		0.5546
Mixed Election Consideration | Finisar Corporation
Business Acquisition [Line Items]
Amount per share to be received		$ 15.60
Number of shares to be received		0.2218

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2018	Jun. 30, 2018
Business Acquisition [Line Items]
Goodwill		$ 298,250,000		$ 298,250,000	$ 270,678,000
II-VI Photonics Segment
Business Acquisition [Line Items]
Goodwill		134,072,000		134,072,000	$ 109,670,000
CoAdna Holdings, Inc.
Business Acquisition [Line Items]
Net cash paid at acquisition			$ 85,000,000
Acquisition, inclusive of cash acquired			42,200,000
Goodwill			24,844,000
Business acquisition, transaction costs		1,900,000		1,900,000
Fair value of accounts receivable acquired			5,700,000
Fair value of accounts receivable gross contractual amount			5,700,000
Goodwill deductible for income tax purposes			0
Business acquisition, revenue of acquired entity		$ 7,100,000		$ 10,100,000
Business acquisition, Inventory acquired			6,189,000
Intangible assets			16,072,000
CoAdna Holdings, Inc. | II-VI Photonics Segment
Business Acquisition [Line Items]
Goodwill			$ 24,800,000
Product Line
Business Acquisition [Line Items]
Net cash paid at acquisition	$ 10,000,000
Goodwill	1,200,000
Business acquisition, Inventory acquired	200,000
Business acquisition, equipment acquired	2,300,000
Product Line | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible assets	$ 6,300,000

Allocation of Purchase Price of

Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail)) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018
Assets
Goodwill	$ 298,250		$ 270,678
CoAdna Holdings, Inc.
Assets
Accounts receivable		$ 5,684
Inventories		6,189
Prepaid and other assets		2,866
Property, plant & equipment		3,181
Intangible assets		16,072
Goodwill		24,844
Total assets acquired		58,836
Liabilities
Accounts payable		4,006
Other accrued liabilities		2,717
Accrued income taxes		5,791
Deferred tax liabilities		3,506
Total liabilities assumed		16,020
Net assets acquired		$ 42,816

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Additional Information (Detail 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01	Dec. 31, 2018
Minimum | Commercial | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Expected timing of satisfaction, period	30 days
Minimum | U.S. Government | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Expected timing of satisfaction, period	30 days
Maximum | Commercial | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Expected timing of satisfaction, period	60 days
Maximum | U.S. Government | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Expected timing of satisfaction, period	60 days
Maximum | U.S. Government | Services
Disaggregation Of Revenue [Line Items]
Expected timing of satisfaction, period	60 days

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Disaggregation Of Revenue [Abstract]
Accounts receivable net of allowance for doubtful accounts	$ 227,006	$ 215,032
Standard product warranty description	The Company offers an assurance-type limited warranty that products will be free from defects in materials and workmanship. The warranty is typically one year or the industry standard in length and is limited to either (1) the replacement or repair of the product or (2) a credit against future purchases. The products are not sold with a right of return.
Assurance-type limited product warranty period	1 year

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Summary of Disaggregated Revenue by Revenue Market and Product (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Revenue	$ 342,839	$ 281,470	$ 657,272	$ 542,973
II-VI Laser Solutions
Disaggregation Of Revenue [Line Items]
Revenue	105,577		211,752
II-VI Performance Products
Disaggregation Of Revenue [Line Items]
Revenue	77,568		150,670
II-VI Photonics
Disaggregation Of Revenue [Line Items]
Revenue	159,694		294,850
Commercial | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Revenue	298,663		576,895
Commercial | Services
Disaggregation Of Revenue [Line Items]
Revenue	4,618		10,404
Commercial | II-VI Laser Solutions | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Revenue	100,894		203,764
Commercial | II-VI Laser Solutions | Services
Disaggregation Of Revenue [Line Items]
Revenue	1,363		2,253
Commercial | II-VI Performance Products | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Revenue	39,804		81,801
Commercial | II-VI Performance Products | Services
Disaggregation Of Revenue [Line Items]
Revenue	1,526		4,631
Commercial | II-VI Photonics | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Revenue	157,965		291,330
Commercial | II-VI Photonics | Services
Disaggregation Of Revenue [Line Items]
Revenue	1,729		3,520
U.S. Government | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Revenue	33,507		60,687
U.S. Government | Services
Disaggregation Of Revenue [Line Items]
Revenue	6,051		9,286
U.S. Government | II-VI Laser Solutions | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Revenue	3,320		5,735
U.S. Government | II-VI Performance Products | Direct Ship Parts
Disaggregation Of Revenue [Line Items]
Revenue	30,187		54,952
U.S. Government | II-VI Performance Products | Services
Disaggregation Of Revenue [Line Items]
Revenue	$ 6,051		$ 9,286

Other Investments - Additional

Other Investments - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018	Jun. 30, 2018
Schedule Of Equity Method Investments [Line Items]
Equity interest, percentage	93.80%	93.80%		93.80%
Aggregate cost of equity method investments	$ 51,500,000
Working capital adjustment relating to acquisition	200,000
Pro-rata share of earnings from equity method investment				$ 2,767,000	$ 1,617,000
Voting interest				25.00%
Equity Investment		$ 76,441,000		$ 76,441,000			$ 69,215,000
Purchase price description of minority interest under equity method				The purchase price is equal to the greater of: (a) (i) the product of the aggregate trailing 12-month revenues of the equity investment preceding the date of purchase, multiplied by (ii) a factor of 2.9 multiplied by (iii) a factor of 0.723, multiplied by (iv) the percentage interest owned by each minority equity holder and (b) $966,666.
Minimum purchase price consideration of remaining minority interest under equity method		966,666		$ 966,666
Interest percentage in investment, accounted under cost method						10.00%
Investment accounted under cost method						$ 4,500,000
Other Long-term Liabilities | ASC 815-10, Derivatives and Hedging
Schedule Of Equity Method Investments [Line Items]
Equity method Investment, noncurrent liabilities	$ 2,200,000
Equity Investment
Schedule Of Equity Method Investments [Line Items]
Equity Investment		58,400,000		58,400,000			56,300,000
Privately-held Company
Schedule Of Equity Method Investments [Line Items]
Pro-rata share of earnings from equity method investment		$ 900,000	$ 1,100,000	$ 2,000,000	1,100,000
Guangdong Fuxin Electronic Technology
Schedule Of Equity Method Investments [Line Items]
Equity interest, percentage		20.20%		20.20%
Pro-rata share of earnings from equity method investment		$ 200,000	$ 200,000	$ 700,000	$ 500,000
Total carrying value of equity method investment		$ 13,600,000		$ 13,600,000			$ 12,900,000

Schedule of Equity in Nonconsol

Schedule of Equity in Nonconsolidated Investment (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018	Nov. 30, 2017
Schedule Of Equity Method Investments [Line Items]
Equity Investment, Ownership Percentage	93.80%		93.80%
Equity Investment	$ 76,441	$ 69,215
Equity Investment
Schedule Of Equity Method Investments [Line Items]
Equity Investment	$ 58,400	$ 56,300
Nonconsolidated Investment | Equity Investment | USA
Schedule Of Equity Method Investments [Line Items]
Equity Investment, Ownership Percentage	93.80%
Equity Investment	$ 58,376

Components of Inventories (Deta

Components of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 118,807	$ 97,502
Work in progress	93,375	83,002
Finished goods	78,917	67,764
Inventories, Total	$ 291,099	$ 248,268

Property Plant and Equipment (D

Property Plant and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, gross	$ 1,014,184	$ 947,863
Less accumulated depreciation	(454,665)	(422,973)
Property, Plant and Equipment, net	559,519	524,890
Land and Improvements
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, gross	8,895	9,072
Buildings and Improvements
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, gross	226,229	216,507
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, gross	694,191	633,934
Construction in Progress
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, gross	$ 84,869	$ 88,350

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	6 Months Ended
	Dec. 31, 2018USD ($)
Goodwill [Line Items]
Balance-beginning of period	$ 270,678
Goodwill acquired	30,016
Foreign currency translation	(2,444)
Balance-end of period	298,250
II-VI Laser Solutions
Goodwill [Line Items]
Balance-beginning of period	98,737
Foreign currency translation	(831)
Balance-end of period	97,906
II-VI Photonics
Goodwill [Line Items]
Balance-beginning of period	109,670
Goodwill acquired	26,015
Foreign currency translation	(1,613)
Balance-end of period	134,072
II-VI Performance Products
Goodwill [Line Items]
Balance-beginning of period	62,271
Goodwill acquired	4,001
Balance-end of period	$ 66,272

Gross Carrying Amount and Accum

Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 232,812	$ 211,870
Accumulated Amortization	(93,817)	(86,801)
Net Book Value	138,995	125,069
Technology and Patents
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	82,552	66,812
Accumulated Amortization	(35,780)	(32,979)
Net Book Value	46,772	33,833
Trademarks
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,765	15,882
Accumulated Amortization	(1,536)	(1,471)
Net Book Value	14,229	14,411
Customer Lists
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	132,923	127,603
Accumulated Amortization	(54,929)	(50,792)
Net Book Value	77,994	76,811
Other
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,572	1,573
Accumulated Amortization	$ (1,572)	(1,559)
Net Book Value		$ 14

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($)	6 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Goodwill And Other Intangible Assets [Line Items]
Impairment of goodwill and long-lived assets	$ 0
Carrying amount of indefinite trade names acquired	$ 14,000,000
CoAdna Holdings, Inc.
Goodwill And Other Intangible Assets [Line Items]
Identifiable intangibles assets recorded in connection with acquisitions		$ 16,072,000
Technology and Patents
Goodwill And Other Intangible Assets [Line Items]
Remaining amortization period of patents and customer lists, in months	88 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
Technology and Patents | CoAdna Holdings, Inc.
Goodwill And Other Intangible Assets [Line Items]
Identifiable intangibles assets recorded in connection with acquisitions	$ 9,800,000
Customer Lists
Goodwill And Other Intangible Assets [Line Items]
Remaining amortization period of patents and customer lists, in months	134 months
Customer Lists | Minimum
Goodwill And Other Intangible Assets [Line Items]
Amortization period of finite lived intangible assets, in months	120 months
Customer Lists | Maximum
Goodwill And Other Intangible Assets [Line Items]
Amortization period of finite lived intangible assets, in months	240 months
Customer Lists | CoAdna Holdings, Inc.
Goodwill And Other Intangible Assets [Line Items]
Identifiable intangibles assets recorded in connection with acquisitions	$ 6,300,000
Technology-Based Intangible Assets | WSS Product Line
Goodwill And Other Intangible Assets [Line Items]
Identifiable intangibles assets recorded in connection with acquisitions	$ 6,300,000

Estimated Amortization Expense

Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Fiscal Years (Detail) $ in Thousands	Dec. 31, 2018USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Remaining 2,019	$ 8,300
2,020	16,500
2,021	15,200
2,022	13,500
2,023	$ 13,100

Components of Debt (Detail)

Components of Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Line Of Credit Facility [Line Items]
Total debt, Gross	$ 531,555
Total debt	480,457	$ 439,013
Current portion of long-term debt	(20,000)	(20,000)
Long-term debt, less current portion	460,457	419,013
0.25% Convertible Senior Note Due 2022
Line Of Credit Facility [Line Items]
Total debt, Gross	345,000	345,000
Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount	(50,155)	(56,409)
Note payable
Line Of Credit Facility [Line Items]
Total debt, Gross	3,834
Integrated Photonics, Inc | Note payable
Line Of Credit Facility [Line Items]
Total debt, Gross	3,834	3,834
Line of credit
Line Of Credit Facility [Line Items]
Total debt, Gross	125,000	80,000
Term Loans
Line Of Credit Facility [Line Items]
Total debt, Gross	55,000	65,000
Yen denominated line of credit
Line Of Credit Facility [Line Items]
Total debt, Gross	2,721	2,714
Credit Facility
Line Of Credit Facility [Line Items]
Credit facility unamortized debt issuance costs	$ (943)	$ (1,126)

Components of Debt (Parenthetic

Components of Debt (Parenthetical) (Detail)	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
0.25% Convertible Senior Note Due 2022
Line Of Credit Facility [Line Items]
Debt instrument, interest rate	0.25%	0.25%
London Interbank Offered Rate (LIBOR) | Term Loans
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate	1.75%
London Interbank Offered Rate (LIBOR) | Line of credit
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate	1.75%
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate	1.75%

Debt - Additional Information (

Debt - Additional Information (Detail)	Aug. 24, 2017USD ($)	Jul. 28, 2016USD ($)	Dec. 31, 2018USD ($)$ / shares	Jun. 30, 2018USD ($)	Dec. 31, 2018JPY (¥)	Jun. 30, 2018JPY (¥)	Dec. 31, 2017
Line Of Credit Facility [Line Items]
Available credit under lines of credit			$ 201,400,000	$ 246,400,000
Total outstanding letters of credit			$ 400,000	400,000
Weighted average interest rate of total borrowings			1.70%		1.70%		1.40%
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Aggregate principal amount		$ 325,000,000
Credit facility, term		5 years
Debt instrument maturity date		Jul. 27, 2021
Term Loans
Line Of Credit Facility [Line Items]
Aggregate principal amount		$ 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]
Aggregate principal amount			$ 4,500,000		¥ 500,000,000
Debt instrument, month and year of maturity			2020-08
Line of credit, outstanding | ¥					¥ 300,000,000	¥ 300,000,000
Maximum | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Credit facility, optional additional borrowing amount		$ 100,000,000
Base Rate Option | Minimum | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate		0.00%
Base Rate Option | Maximum | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate		1.25%
Euro Rate Option | Minimum | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate		1.00%
Euro Rate Option | Maximum | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate		2.25%
London Interbank Offered Rate (LIBOR) | Term Loans
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate			1.75%
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate			1.75%
London Interbank Offered Rate (LIBOR) | Minimum | Yen denominated line of credit
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate			0.625%
London Interbank Offered Rate (LIBOR) | Maximum | Yen denominated line of credit
Line Of Credit Facility [Line Items]
Debt instrument, rate added on variable rate			1.75%
0.25% Convertible Senior Note Due 2022
Line Of Credit Facility [Line Items]
Debt instrument, interest rate			0.25%		0.25%		0.25%
Equity portion of convertible debt			$ 56,400,000
Debt issuance costs			$ 1,700,000
Debt instrument conversion, shares issued per $1,000 principal amount			21.25
Debt instrument conversion, principal amount of each note converted			$ 1,000
Debt instrument conversion, conversion price per share | $ / shares			$ 47.06
Debt instrument conversion, If-converted value of notes			$ 238,000,000	$ 318,500,000
Effective interest rate			4.50%		4.50%		4.50%
Unamortized discount			$ 43,800,000
Amortization period			4 years
Debt instrument maturity date			Sep. 1, 2022
0.25% Convertible Senior Note Due 2022 | Initial Purchasers
Line Of Credit Facility [Line Items]
Aggregate principal amount	$ 300,000,000
Debt instrument, interest rate	0.25%
0.25% Convertible Senior Notes Over-Allotment Option | Initial Purchasers
Line Of Credit Facility [Line Items]
Aggregate principal amount	$ 45,000,000
Number of days option granted to purchase additional principal amount of notes	30 days

Summary of Total Interest Expen

Summary of Total Interest Expense Recognized (Detail) - 0.25% Convertible Senior Note Due 2022 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
0.25% contractual coupon	$ 221	$ 219	$ 441	$ 297
Amortization of debt discount and debt issuance costs including initial purchaser discount	3,145	2,935	6,255	4,043
Interest expense	$ 3,366	$ 3,154	$ 6,696	$ 4,340

Summary of Total Interest Exp_2

Summary of Total Interest Expense Recognized (Parenthetical) (Detail)	Dec. 31, 2018	Dec. 31, 2017
0.25% Convertible Senior Note Due 2022
Debt Instrument [Line Items]
Debt instrument, interest rate	0.25%	0.25%

Remaining Annual Principal Paym

Remaining Annual Principal Payments of Credit Obligations (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Line Of Credit Facility [Line Items]
Year 1	$ 20,000
Year 2	26,555
Year 3	140,000
Year 4	345,000
Total	531,555
Term Loans
Line Of Credit Facility [Line Items]
Year 1	20,000
Year 2	20,000
Year 3	15,000
Total	55,000	$ 65,000
Yen Line of Credit
Line Of Credit Facility [Line Items]
Year 2	2,721
Total	2,721	2,714
U.S. Dollar Line of Credit
Line Of Credit Facility [Line Items]
Year 3	125,000
Total	125,000	$ 80,000
Note Payable
Line Of Credit Facility [Line Items]
Year 2	3,834
Total	3,834
Convertible Notes
Line Of Credit Facility [Line Items]
Year 4	345,000
Total	$ 345,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Income Tax Contingency [Line Items]
U.S. statutory rate	21.00%
Effective income tax rate	18.20%	45.90%
Unrecognized tax benefits that would impact effective tax rate	$ 14		$ 9.9
Interest and penalties accrued	0.8		$ 0.6
Liability for uncertain tax positions that would impact the effective tax rate if recognized	$ 5.9
United States Internal Revenue Service | Earliest Tax Year
Income Tax Contingency [Line Items]
Tax year remain open to examination	2,015
United States Internal Revenue Service | Latest Tax Year
Income Tax Contingency [Line Items]
Tax year remain open to examination	2,019
State Jurisdictions | Earliest Tax Year
Income Tax Contingency [Line Items]
Tax year remain open to examination	2,014
State Jurisdictions | Latest Tax Year
Income Tax Contingency [Line Items]
Tax year remain open to examination	2,019
Foreign Taxing Jurisdictions | Earliest Tax Year
Income Tax Contingency [Line Items]
Tax year remain open to examination	2,009
Foreign Taxing Jurisdictions | Latest Tax Year
Income Tax Contingency [Line Items]
Tax year remain open to examination	2,019
U.S. Federal
Income Tax Contingency [Line Items]
Income tax examination, year(s) under examination	2,016
Subsidiaries in Philippines
Income Tax Contingency [Line Items]
Income tax examination, year(s) under examination	2,017
Subsidiary in Germany | Earliest Tax Year
Income Tax Contingency [Line Items]
Income tax examination, year(s) under examination	2,012
Subsidiary in Germany | Latest Tax Year
Income Tax Contingency [Line Items]
Income tax examination, year(s) under examination	2,015
Subsidiary in New Jersey | Earliest Tax Year
Income Tax Contingency [Line Items]
Income tax examination, year(s) under examination	2,014
Subsidiary in New Jersey | Latest Tax Year
Income Tax Contingency [Line Items]
Income tax examination, year(s) under examination	2,017

Computation of Earnings Per Sha

Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net earnings	$ 28,702	$ 9,596	$ 54,851	$ 30,737
Weighted average shares	63,588	62,302	63,504	62,523
Basic earnings per common share	$ 0.45	$ 0.15	$ 0.86	$ 0.49
Net earnings	$ 28,702	$ 9,596	$ 54,851	$ 30,737
Weighted average shares	63,588	62,302	63,504	62,523
Dilutive effect of common stock equivalents	2,085	2,736	2,412	2,638
Diluted weighted average common shares	65,673	65,038	65,916	65,161
Diluted earnings per common share	$ 0.44	$ 0.15	$ 0.83	$ 0.47

Schedule of Potential Shares of

Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total anti-dilutive shares	7,469	7,464	7,456	7,441
0.25% Convertible Senior Note Due 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total anti-dilutive shares	7,331	7,331	7,331	7,331
Stock Options And Restricted Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total anti-dilutive shares	138	133	125	110

Schedule of Potential Shares _2

Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share (Parenthetical) (Details) - 0.25% Convertible Senior Note Due 2022	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Debt instrument, interest rate	0.25%	0.25%
Debt instrument maturity date	Sep. 1, 2022

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	6 Months Ended
	Dec. 31, 2018Segment
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		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenues	$ 342,839	$ 281,470	$ 657,272	$ 542,973
Operating income (expense)	39,606	32,486	76,819	62,261
Interest expense	(5,580)	(4,644)	(11,164)	(8,289)
Other income (expense), net	701	2,026	1,414	2,796
Income taxes	(6,025)	(20,272)	(12,218)	(26,030)
Net earnings	28,702	9,596	54,851	30,737
Depreciation and amortization	22,329	19,409	44,499	38,225
Segment assets	1,877,134		1,877,134		$ 1,761,661
Expenditures for property, plant & equipment	38,468	39,397	73,386	76,823
Investments	76,441		76,441		$ 69,215
II-VI Laser Solutions
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenues	105,577		211,752
II-VI Photonics
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenues	159,694		294,850
II-VI Performance Products
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenues	77,568		150,670
Operating Segments | II-VI Laser Solutions
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenues	105,577	105,033	211,752	192,969
Inter-segment revenues	13,632	6,887	27,185	14,067
Operating income (expense)	12,222	9,442	24,532	12,094
Depreciation and amortization	10,626	8,829	21,473	17,053
Segment assets	697,948		697,948
Expenditures for property, plant & equipment	15,301	23,422	26,894	36,183
Operating Segments | II-VI Photonics
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenues	159,694	115,304	294,850	231,244
Inter-segment revenues	2,440	5,497	5,336	8,360
Operating income (expense)	23,087	16,237	38,999	35,663
Depreciation and amortization	6,462	5,669	12,661	11,176
Segment assets	697,856		697,856
Expenditures for property, plant & equipment	11,223	7,893	23,274	17,676
Operating Segments | II-VI Performance Products
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Revenues	77,568	61,133	150,670	118,760
Inter-segment revenues	6,059	6,320	11,721	12,310
Operating income (expense)	11,400	6,807	20,391	14,504
Depreciation and amortization	5,241	4,911	10,365	9,996
Segment assets	481,331		481,331
Expenditures for property, plant & equipment	11,945	8,082	23,219	22,965
Investments	76,441		76,441
Eliminations & Other
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Inter-segment revenues	(22,131)	$ (18,704)	(44,242)	$ (34,737)
Operating income (expense)	$ (7,103)		$ (7,103)

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail)	6 Months Ended
	Dec. 31, 2018shares
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	3,550,000

Share-Based Compensation Expens

Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense	$ 4,958	$ 5,397	$ 10,295	$ 11,709
Stock Options and Cash-Based Stock Appreciation Rights
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense	454	2,062	2,782	4,525
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	2,007	2,181	4,799	4,744
Performance Share Awards and Cash-Based Performance Share Unit Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense	$ 2,497	$ 1,154	$ 2,714	$ 2,440

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Feb. 29, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Payment for earnout amount	$ 3,540
Convertible Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt instrument, interest rate	0.25%	0.25%
EpiWorks | Upon Achievement of Financial and Operational Targets For Capacity Wafers Output and Gross Margin | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisitions, contingent consideration			$ 6,000

Summary of Fair Value and Carry

Summary of Fair Value and Carrying Value of Convertible Notes (Detail) $ in Thousands	Dec. 31, 2018USD ($)
Fair Value Disclosures [Abstract]
Convertible notes fair value	$ 334,650
Convertible notes carrying value	$ 294,845

Summary by Level of Fair Value

Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Fair Value, Inputs, Level 3
Liabilities:
Contingent earnout arrangements	$ 5,721	$ 7,429
Fair Value, Measurements, Recurring
Assets:
Foreign currency forward contracts		121
Liabilities:
Foreign currency forward contracts	218
Contingent earnout arrangements	3,697	5,405
Net put option	2,024	2,024
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Assets:
Foreign currency forward contracts		121
Liabilities:
Foreign currency forward contracts	218
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Liabilities:
Contingent earnout arrangements	3,697	5,405
Net put option	$ 2,024	$ 2,024

Reconciliation of Beginning and

Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangements Related to Company's Acquisitions (Detail) $ in Thousands	6 Months Ended
	Dec. 31, 2018USD ($)
Contingent earnout arrangements:
Payments on earnout arrangements	$ (3,540)
Fair Value, Inputs, Level 3
Business Acquisition Contingent Consideration [Line Items]
Balance - beginning of period	7,429
Contingent earnout arrangements:
Payments on earnout arrangements	(3,540)
Other earnout arrangements	2,597
Balance - end of period	5,721
Fair Value, Inputs, Level 3 | Other Expense, (Income)
Contingent earnout arrangements:
Changes in fair value recorded in other expense, (income)	$ (765)

Schedule of Net Periodic Pensio

Schedule of Net Periodic Pension Costs (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Net Periodic Benefit Cost [Abstract]
Service cost	$ 953	$ 946	$ 1,891	$ 1,898
Interest cost	139	107	276	214
Expected return on plan assets	(250)	(213)	(496)	(428)
Net amortization	(109)	45	(42)	150
Net periodic pension costs	$ 733	$ 885	$ 1,629	$ 1,834

Post-Retirement Benefits - Addi

Post-Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Compensation And Retirement Disclosure [Abstract]
Contributions to the Compensation Plan by the employer	$ 0.8	$ 1	$ 1.6	$ 1.9
Contributions to the Compensation Plan by the employer in remainder of fiscal year 2018	$ 1.6		$ 1.6

Share Repurchase Programs (Deta

Share Repurchase Programs (Detail) - USD ($)	3 Months Ended	53 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Aug. 31, 2014
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program, authorized amount			$ 50,000,000
Purchase of common stock, shares		1,316,587
Purchase of Treasury Stock		$ 19,000,000
Program
Equity Class Of Treasury Stock [Line Items]
Purchase of common stock, shares	0

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax (Detail) $ in Thousands	6 Months Ended
	Dec. 31, 2018USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 1,024,311
Other comprehensive income before reclassifications	(15,105)
Amounts reclassified from AOCI	(33)
Net current-period other comprehensive income	(15,138)
Ending Balance	1,073,173
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(1,308)
Other comprehensive income before reclassifications	(15,105)
Net current-period other comprehensive income	(15,105)
Ending Balance	(16,413)
Defined Benefit Pension Plan
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(2,472)
Amounts reclassified from AOCI	(33)
Net current-period other comprehensive income	(33)
Ending Balance	(2,505)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(3,780)
Ending Balance	$ (18,918)

Capital Lease - Schedule of Fut

Capital Lease - Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease (Detail) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2019 (remaining)	$ 1,161
2,020	2,355
2,021	2,419
2,022	2,486
2,023	2,554
Thereafter	24,740
Total minimum lease payments	35,715
Less amount representing interest	10,880
Present value of capitalized payments	$ 24,835

Capital Lease - Additional Info

Capital Lease - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Capital Leased Assets [Line Items]
Capital leases future minimum payments present value at inception	$ 25,000	$ 25,000
Property, plant and equipment estimated useful lives, years		15 years
Depreciation		$ 36,679	$ 30,811
Capital Leased Asset
Capital Leased Assets [Line Items]
Depreciation	$ 400	$ 800