Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 20, 2015 | Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IIVI | ||
Entity Registrant Name | II-VI INC | ||
Entity Central Index Key | 820,318 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 61,222,480 | ||
Entity Public Float | $ 798,334,460 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 173,634 | $ 174,660 |
Accounts receivable - less allowance for doubtful accounts of $1,048 at June 30, 2015 and $1,852 at June 30, 2014 | 140,772 | 136,723 |
Inventories | 164,388 | 165,873 |
Deferred income taxes | 13,260 | 11,118 |
Prepaid and refundable income taxes | 6,881 | 4,440 |
Prepaid and other current assets | 14,033 | 12,917 |
Total Current Assets | 512,968 | 505,731 |
Property, plant & equipment, net | 203,812 | 208,939 |
Goodwill | 195,894 | 196,145 |
Other intangible assets, net | 122,462 | 136,404 |
Investment | 11,914 | 11,589 |
Deferred income taxes | 2,210 | 4,038 |
Other assets | 8,904 | 9,080 |
Total Assets | 1,058,164 | 1,071,926 |
Current Liabilities | ||
Current portion of long-term debt | 20,000 | 20,000 |
Accounts payable | 45,275 | 45,767 |
Accrued compensation and benefits | 39,310 | 32,461 |
Accrued income taxes payable | 9,310 | 4,584 |
Deferred income taxes | 685 | 732 |
Other accrued liabilities | 24,576 | 31,521 |
Total Current Liabilities | 139,156 | 135,065 |
Long-term debt | 155,957 | 221,960 |
Deferred income taxes | 7,105 | 7,440 |
Other liabilities | 26,865 | 32,418 |
Total Liabilities | $ 329,083 | $ 396,883 |
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 - 71,779,704 shares at June 30, 2015; 70,935,098 shares at June 30, 2014 | $ 226,609 | $ 213,573 |
Accumulated other comprehensive income | 8,665 | 19,406 |
Retained earnings | 587,302 | 521,327 |
Shareholders' equity excluding treasury stock | 822,576 | 754,306 |
Treasury stock, at cost - 10,565,209 shares at June 30, 2015 and 9,481,963 shares at June 30, 2014 | (93,495) | (79,263) |
Total Shareholders' Equity | 729,081 | 675,043 |
Total Liabilities and Shareholders' Equity | $ 1,058,164 | $ 1,071,926 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,048 | $ 1,852 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 71,779,704 | 70,935,098 |
Treasury stock, shares | 10,565,209 | 9,481,963 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues | |||
Domestic | $ 274,142 | $ 240,534 | $ 241,045 |
International | 467,819 | 442,727 | 310,030 |
Total Revenues | 741,961 | 683,261 | 551,075 |
Costs, Expenses and Other Expense (Income) | |||
Cost of goods sold | 470,363 | 456,545 | 347,558 |
Internal research and development | 51,260 | 42,523 | 22,689 |
Selling, general and administrative | 143,539 | 137,707 | 109,337 |
Interest expense | 3,863 | 4,479 | 1,160 |
Other expense (income), net | (6,176) | (3,634) | (7,155) |
Total Costs, Expenses and Other Expense (Income) | 662,849 | 637,620 | 473,589 |
Earnings from Continuing Operations Before Income Taxes | 79,112 | 45,641 | 77,486 |
Income Taxes | 13,137 | 7,325 | 18,766 |
Earnings from Continuing Operations | 65,975 | 38,316 | 58,720 |
Earnings (loss) from Discontinued Operation, net of income tax | 133 | (6,789) | |
Net Earnings | 65,975 | 38,449 | 51,931 |
Less: Earnings Attributable to Redeemable Noncontrolling Interest | 1,118 | ||
Net Earnings Attributable to II-VI Incorporated | $ 65,975 | $ 38,449 | $ 50,813 |
Basic Earnings (loss) Attributable to II-VI Incorporated Per Share: | |||
Continuing Operations | $ 1.08 | $ 0.62 | $ 0.92 |
Discontinued Operation | (0.11) | ||
Consolidated | 1.08 | 0.62 | 0.81 |
Diluted Earnings (loss) Attributable to II-VI Incorporated Per Share: | |||
Continuing Operations | 1.05 | 0.60 | 0.90 |
Discontinued Operation | (0.11) | ||
Consolidated | $ 1.05 | $ 0.60 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 65,975 | $ 38,449 | $ 51,931 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (8,497) | 2,363 | 5,362 |
Pension adjustment, net of taxes of ($602) for the year ended June 30, 2015 and $387 for the year ended June 30, 2014, respectively | (2,244) | 1,443 | |
Comprehensive income | 55,234 | 42,255 | 57,293 |
Less: Earnings Attributable to Redeemable Noncontrolling Interest | 1,118 | ||
Other comprehensive income (loss) attributable to redeemable noncontrolling interest: | |||
Foreign currency translation adjustments attributable to redeemable noncontrolling interest | (295) | ||
Comprehensive income attributable to redeemable noncontrolling interest | 823 | ||
Comprehensive income attributable to II-VI Incorporated | $ 55,234 | $ 42,255 | $ 56,470 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Pension adjustment tax | $ (602) | $ 387 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
Beginning Balance at Jun. 30, 2012 | $ 586,226 | $ 176,295 | $ 10,238 | $ 434,940 | $ (35,247) |
Beginning Balance, shares at Jun. 30, 2012 | 69,627,000 | (6,794,000) | |||
Shares issued under share-based compensation plans | 4,104 | $ 4,104 | |||
Shares issued under share-based compensation plans (in shares) | 596,000 | ||||
Net earnings | 50,813 | 50,813 | |||
Purchases of treasury stock | $ (19,978) | $ (19,978) | |||
Purchases of treasury stock, shares | (1,141,022) | (1,141,000) | |||
Treasury stock under deferred compensation arrangements | $ 1,291 | $ (1,291) | |||
Treasury stock under deferred compensation arrangements, (in shares) | (70,000) | ||||
Minimum tax withholding requirements | $ (138) | $ (138) | |||
Minimum tax withholding requirements, (in shares) | (7,000) | ||||
Foreign currency translation adjustments | 5,362 | 5,362 | |||
Share-based compensation expense | 11,959 | 11,959 | |||
Excess tax benefits from share-based compensation expense | 635 | 635 | |||
Adjustment to redeemable noncontrolling interest | (2,875) | (2,875) | |||
Ending Balance at Jun. 30, 2013 | 636,108 | $ 194,284 | 15,600 | 482,878 | $ (56,654) |
Ending Balance, shares at Jun. 30, 2013 | 70,223,000 | (8,012,000) | |||
Shares issued under share-based compensation plans | 3,655 | $ 4,482 | $ (827) | ||
Shares issued under share-based compensation plans (in shares) | 712,000 | (44,000) | |||
Net earnings | 38,449 | 38,449 | |||
Purchases of treasury stock | $ (19,973) | $ (19,973) | |||
Purchases of treasury stock, shares | (1,333,355) | (1,333,000) | |||
Treasury stock under deferred compensation arrangements | $ 1,809 | $ (1,809) | |||
Treasury stock under deferred compensation arrangements, (in shares) | (93,000) | ||||
Foreign currency translation adjustments | $ 2,363 | 2,363 | |||
Share-based compensation expense | 12,347 | 12,347 | |||
Pension adjustment, net of taxes of ($602) for the year ended June 30, 2015 and $387 for the year ended June 30, 2014, respectively | 1,443 | 1,443 | |||
Excess tax benefits from share-based compensation expense | 651 | 651 | |||
Ending Balance at Jun. 30, 2014 | 675,043 | $ 213,573 | 19,406 | 521,327 | $ (79,263) |
Ending Balance, shares at Jun. 30, 2014 | 70,935,000 | (9,482,000) | |||
Shares issued under share-based compensation plans | 4,111 | $ 5,196 | $ (1,085) | ||
Shares issued under share-based compensation plans (in shares) | 773,000 | (75,000) | |||
Net earnings | 65,975 | 65,975 | |||
Purchases of treasury stock | $ (12,729) | $ (12,729) | |||
Purchases of treasury stock, shares | (936,049) | (936,000) | |||
Treasury stock under deferred compensation arrangements | $ 418 | $ (418) | |||
Treasury stock under deferred compensation arrangements, (in shares) | 72,000 | (72,000) | |||
Foreign currency translation adjustments | $ (8,497) | (8,497) | |||
Share-based compensation expense | 11,340 | $ 11,340 | |||
Pension adjustment, net of taxes of ($602) for the year ended June 30, 2015 and $387 for the year ended June 30, 2014, respectively | (2,244) | (2,244) | |||
Excess tax benefits from share-based compensation expense | 335 | ||||
Ending Balance at Jun. 30, 2015 | 729,081 | $ 226,609 | $ 8,665 | $ 587,302 | $ (93,495) |
Ending Balance, shares at Jun. 30, 2015 | 71,780,000 | (10,565,000) | |||
APIC pool reclassification | (3,812) | $ (3,812) | |||
Tax deficiency from share-based compensation expense | $ (106) | $ (106) |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Stockholders Equity [Abstract] | ||
Pension adjustment tax | $ (602) | $ 387 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 65,975 | $ 38,449 | $ 51,931 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
(Earnings) loss from discontinued operation, net of tax | (133) | 6,789 | |
Depreciation | 41,114 | 41,805 | 34,135 |
Amortization | 11,969 | 11,293 | 6,657 |
Share-based compensation expense | 11,340 | 12,347 | 11,959 |
Impairment of intangible assets | 1,964 | ||
Losses on foreign currency remeasurements and transactions | 2,178 | 700 | 1,244 |
Earnings from equity investment | (948) | (698) | (1,048) |
Deferred income taxes | (3,781) | (4,435) | 1,962 |
Excess tax benefits from share-based compensation expense | (335) | (651) | (635) |
Impairment on property, plant, and equipment | 900 | ||
Increase (decrease) in cash from changes in: | |||
Accounts receivable | (10,742) | (28,486) | 5,441 |
Inventories | (4,207) | 12,794 | 1,969 |
Accounts payable | 61 | 19,813 | (9,376) |
Income taxes | 7,589 | (6,282) | 4,351 |
Other operating net assets | 7,189 | (2,251) | (5,807) |
Continuing Operations | 129,366 | 94,265 | 110,472 |
Discontinued Operation | 1,197 | (2,865) | |
Net cash provided by operating activities | 129,366 | 95,462 | 107,607 |
Cash Flows from Investing Activities | |||
Additions to property, plant & equipment | (52,313) | (29,220) | (25,205) |
Purchases of businesses, net of cash acquired | (177,676) | (126,193) | |
Proceeds received from contractual settlement from Thailand flooding | 4,797 | ||
Proceeds received from sale of equity method investment | 2,138 | ||
Other investing activities | 67 | 79 | |
Continuing Operations | (52,246) | (206,817) | (144,463) |
Discontinued Operation | (68) | ||
Net cash used in investing activities | (52,246) | (206,817) | (144,531) |
Cash Flows from Financing Activities | |||
Proceeds from borrowings | 3,000 | 183,000 | 113,000 |
Payments on borrowings | (68,500) | (55,000) | (11,000) |
Purchases of treasury stock | (12,729) | (19,973) | (19,978) |
Payments of redeemable noncontrolling interest | (8,789) | ||
Payments on holdback arrangements | (2,350) | (3,000) | |
Proceeds from exercises of stock options | 5,196 | 4,358 | 4,104 |
Other financing activities | (681) | (1,514) | (347) |
Net cash (used in) provided by financing activities | (76,064) | 99,082 | 85,779 |
Effect of exchange rate changes on cash and cash equivalents | (2,082) | 1,500 | 1,634 |
Net (decrease) increase in cash and cash equivalents | (1,026) | (10,773) | 50,489 |
Cash and Cash Equivalents at Beginning of Period | 174,660 | 185,433 | 134,944 |
Cash and Cash Equivalents at End of Period | $ 173,634 | 174,660 | 185,433 |
Non cash transactions: | |||
Purchases of businesses - holdback amount recorded in Other accrued liabilities | 10,000 | ||
Capital lease obligation incurred on facility lease | $ 11,636 | ||
Purchase of business utilizing earnout consideration recorded in other current liabilities | $ 3,300 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Note 1. Nature of Business and Summary of Significant Accounting Policies Nature of Business. II-VI Incorporated and its subsidiaries (the “Company,” “we,” “us,” or “our”), a global leader in engineered materials and opto-electronic components, is a vertically-integrated manufacturing company that develops innovative products for diversified applications in the industrial, optical communications, military, life sciences, semiconductor equipment and consumer markets. The Company markets its products through its direct sales force and through distributors and agents. The Company uses certain uncommon materials and compounds to manufacture its products. Some of these materials are available from only one proven outside source. The continued high quality of these materials is critical to the stability of the Company’s manufacturing yields. The Company has not experienced significant production delays due to a shortage of materials. However, the Company does occasionally experience problems associated with vendor-supplied materials not meeting specifications for quality or purity. A significant failure of the Company’s suppliers to deliver sufficient quantities of necessary high-quality materials on a timely basis could have a material adverse effect on the Company’s results of operations. Effective July 1, 2014, the Company realigned its organizational structure into three reporting segments for the purpose of making operational decisions and assessing financial performance: (i) II-VI Laser Solutions, (ii) II-VI Photonics, and (iii) II-VI Performance Products. The Company is reporting financial information (revenue through operating income) for these new reporting segments which management believes will provide enhanced visibility and transparency into the operations, business drivers and the value of the enterprise. Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency Translation. For II-VI Singapore Pte., Ltd. and its subsidiaries, II-VI Suisse S.a.r.l. and II-VI Laser Enterprise of the II-VI Laser Solutions segment, II-VI Network Solutions Division of the II-VI Photonics segment, and II-VI Performance Metals of the II-VI Performance Products segment the functional currency is the United States (U.S.) dollar. The determination of the functional currency is made based on the appropriate economic and management indicators. For all other foreign subsidiaries, the functional currency is the local currency. Assets and liabilities of those operations are translated into U.S. dollars using period-end exchange rates while income and expenses are translated using the average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income within shareholders’ equity in the accompanying Consolidated Balance Sheets. Cash and Cash Equivalents. The Company considers highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and to date have not experienced credit losses in these instruments. Cash of foreign subsidiaries is on deposit at banks in China, Vietnam, Singapore, Japan, Switzerland, the Netherlands, Germany, the Philippines, Belgium, Italy, Hong Kong, Australia, the United Kingdom (“U.K.”) and South Korea. Accounts Receivable. The Company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues, net of this allowance, is reasonably assured. The Company factored a portion of the accounts receivable of its Japan subsidiary during each of the years ended June 30, 2015 and 2014. Factoring is done with high credit quality financial institutions in Japan. During the years ended June 30, 2015 and 2014, $17.8 million and $12.7 million, respectively, of accounts receivable had been factored. As of June 30, 2015 and 2014, the amount included in other accrued liabilities representing the Company’s obligation to the bank for these receivables factored with recourse was immaterial. Inventories. Inventories are valued at the lower of cost or market (“LCM”), with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. Market cannot exceed the net realizable value (i.e., estimated selling price in the ordinary course of business less reasonably predicted costs of completion and disposal) and market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin. In evaluating LCM, management also considers, if applicable, other factors as well, including known trends, market conditions, currency exchange rates and other such issues. The Company records an inventory reserve as a charge against earnings for all products on hand more than twelve to eighteen months depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional reserve is recorded for product on hand that is in excess of product sold to customers over the same periods noted above. Inventories are presented net of reserves. The reserves totaled $22.3 million and $12.0 million at June 30, 2015 and 2014, respectively. The increase in reserves for fiscal year 2015 was primarily due to excess inventory on hand at II-VI Laser Enterprise. Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair market value upon acquisition. Major improvements are capitalized, while maintenance and repairs are generally expensed as incurred. The Company reviews its property, plant and equipment and other long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Depreciation for financial reporting purposes is computed primarily by the straight-line method over the estimated useful lives for building, building improvements and land improvements of 10 to 20 years and 3 to 20 years for machinery and equipment. Business Combinations. The Company accounts for business acquisitions by establishing the acquisition-date fair value as the measurement for all assets acquired and liabilities assumed. Certain provisions of U.S. GAAP prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. Goodwill. The excess purchase price over the fair market value allocated to identifiable tangible and intangible net assets of businesses acquired is reported as goodwill in the accompanying Consolidated Balance Sheets. The Company tests goodwill for impairment at least annually as of April 1, or when events or changes in circumstances indicate that goodwill might be impaired. The evaluation of impairment involves comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company uses a discounted cash flow (“DCF”) model and a market analysis to determine the current fair value of its reporting units. A number of significant assumptions and estimates are involved in estimating the forecasted cash flows used in the DCF model, including markets and market shares, sales volume and pricing, costs to produce, working capital changes and income tax rates. Management considers historical experience and all available information at the time the fair values of the reporting units are estimated. The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. Intangibles. Intangible assets are initially recorded at their cost or fair market value upon acquisition. Finite-lived intangible assets are amortized for financial reporting purposes using the straight-line method over the estimated useful lives of the assets ranging from 5 to 20 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1, or when events or changes in circumstances indicate that indefinite-lived intangible assets might be impaired. Equity Method Investments. The Company has an equity investment in Guangdong Fuxin Electronic Technology (“Fuxin”) based in Guangdong Province, China of 20.2%, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at June 30, 2015 and June 30, 2014 was $11.9 million and $11.6 million, respectively. During the years ended June 30, 2015, 2014 and 2013, the Company’s pro-rata share of earnings from this investment was $0.9 million, $0.7 million and $1.0 million, respectively, and was recorded in other expense (income), net in the Consolidated Statements of Earnings. During the years ended June 30, 2015, 2014 and 2013 the Company recorded dividends from this equity investment of $0.6 million, $0.3 million and $0.5 million, respectively. Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Such accruals are adjusted as further information develops or circumstances change. The Company had no loss contingency liabilities at June 30, 2015 related to commitments and contingencies. Accrued Bonus and Profit Sharing Contribution. The Company records bonus and profit sharing estimates as a charge against earnings. These estimates are adjusted to actual based on final results of operations achieved during the fiscal year. Certain partial bonus amounts are paid on an interim basis, and the remainder is paid after the fiscal year end after the final determination of the applicable percentage or amounts. Other bonuses are paid annually. Warranty Reserve. The Company records a warranty reserve as a charge against earnings based on a percentage of revenues utilizing actual returns over a period that approximates historical warranty experience with adjustments possible for changes in product lines or unusual conditions that come to the Company’s attention. Our warranty reserve balance at June 30, 2015 was approximately $3.3 million. Income Taxes. Deferred income tax assets and liabilities are determined based on the differences between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount more likely than not to be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in facts and circumstances. For example, adjustments could result from significant amendments to existing tax law and the issuance of regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes that its estimates for uncertain tax positions are appropriate and sufficient to pay assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties related to unrecognized tax benefits in income tax expense. Revenue Recognition. The Company recognizes revenues for product shipments when persuasive evidence of a sales arrangement exists, the product has been shipped or delivered, the sale price is fixed or determinable and collectability is reasonably assured. Title and risk of loss passes from the Company to its customer at the time of shipment in most cases with the exception of certain customers. For these customers, title does not pass and revenue is not recognized until the customer has received the product at its physical location. We establish an allowance for doubtful accounts based on historical experience and believe the collection of revenues, net of this reserve, is reasonably assured. Our allowance for doubtful accounts balance at June 30, 2015 was approximately $1.0 million. Our reserve estimate has historically been proven to be materially correct based upon actual charges incurred. The Company’s revenue recognition policy is consistently applied across the Company’s segments, product lines and geographical locations. Further for the periods covered herein, we did not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges. Our distributors and agents are not granted price protection. Our distributors and agents, which comprise less than 10% of consolidated revenues, have no additional product return rights beyond the right to return defective products covered by our warranty policy. Revenues generated from transactions other than product shipments are contract related and have historically accounted for less than 2% of consolidated revenues. We believe our revenue recognition practices have adequately considered the requirements under U.S. GAAP. Shipping and Handling Costs. Shipping and handling costs billed to customers are included in revenues. Shipping and handling costs incurred by the Company are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. Total shipping and handling revenue and costs included in revenues and in selling, general and administrative expenses were not significant for the fiscal years ended June 30, 2015, 2014 and 2013. Research and Development. Internal research and development costs and costs not related to customer and government funded research and development contracts are expensed as incurred. Share-Based Compensation. The Company follows U.S. GAAP in accounting for share-based compensation arrangements, which requires the recognition of the grant-date fair value of stock compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. Workers’ Compensation. The Company is self-insured for certain losses related to workers’ compensation for the majority of its U.S. employees. When estimating the self-insurance liability, the Company considers a number of factors, including historical claims experience, demographic and severity factors and valuations provided by independent third-party consultants. At least annually, management reviews its assumptions and valuations to determine the adequacy of the self-insurance liability. Accumulated Other Comprehensive Income. Accumulated other comprehensive income is a measure of all changes in shareholders’ equity that result from transactions and other economic events in the period other than transactions with owners. Accumulated other comprehensive income is a component of shareholders’ equity and consists of accumulated foreign currency translation adjustments of $9.5 million and $18.0 million as of June 30, 2015 and 2014, respectively, and pension adjustments of ($0.8) million and $1.4 million as of June 30, 2015 and 2014, respectively. Fair Value Measurements. The Company applies fair value accounting for all financial assets and liabilities that are required to be recognized or disclosed at fair value in the financial statements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact, and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Leases. The Company classifies leases as operating in accordance with the provisions of lease accounting. Rent expense under noncancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. The current portion of unamortized deferred lease costs is included in other accrued liabilities and the long-term portion is included in other liabilities in the Consolidated Balance Sheets. Reclassifications. The Company corrected an immaterial error related to its long term deferred tax asset for share based compensation in the Consolidated Balance Sheet as of June 30, 2015. The recorded reclassification of $3.8 million reduced both the long term deferred tax asset and additional paid in capital (“APIC”) associated with the Company’s APIC tax pool. This reclassification had no impact on previously reported revenues, income tax expense and net earnings in any annual or interim periods. Recently Issued Financial Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This update simplifies the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new inventory measurement requirements are effective for the Company’s 2018 fiscal year and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. The adoption of these changes is not expected to have a material impact to the Company’s Consolidated Financial Statements. In April 2015, the FASB issued as final, ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance about whether a cloud computing arrangement includes a software license. The update is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The update allows for the use of either a prospective or retrospective adoption approach. Management is currently evaluating the available transition methods and the potential impact of adoption on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. This ASU requires entities to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts. The guidance does not address situations in which debt issuance costs do not have an associated debt liability or exceed the carrying amount of the associated debt liability. This ASU will be effective beginning in fiscal year 2017. Management is currently evaluating the potential impact of adoption on the Company's Consolidated Financial Statements. In February 2015, the FASB issued as final, ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which affects reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The update allows for the use of either a full retrospective or a modified retrospective adoption approach. Management is currently evaluating the available transition methods and the potential impact of adoption on the Company’s Consolidated Financial Statements. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items. This ASU eliminates the requirement to separately present and disclose extraordinary and unusual items in the financial statements. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606) which supersedes virtually all existing revenue recognition guidance under U.S. GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update allows for the use of either the retrospective or modified retrospective approach of adoption. On July 9, 2015 the FASB approved a one year deferral of the effective date of the update. The update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 (the first quarter of our fiscal year 2019). We have not yet selected a transition method and are currently evaluating the impact of this guidance on our Consolidated Financial Statements. In April 2014, the FASB issued ASU 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The new standard will be effective for annual periods beginning on or after December 15, 2014, with early adoption permitted and will be effective for the Company beginning in the first quarter of fiscal year 2016. The adoption of this standard is not expected to have a significant impact on the Company’s Consolidated Financial Statements. In July 2013, the FASB issued ASU 2013-11: Presentation of an Unrecognized Tax benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit carryforward Exists. The ASU changes how certain unrecognized tax benefits are to be presented on the consolidated balance sheet. This ASU clarified existing guidance to require that an unrecognized tax benefit, or a portion thereof, be presented in the consolidated balance sheet as a reduction to a deferred tax asset for a net operating loss ("NOL") carryforward, similar tax loss, or a tax credit carryforward, except when an NOL carryforward, similar tax loss, or tax credit carryforward is not available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. In such a case, the unrecognized tax benefit would be presented in the consolidated balance sheet as a liability. This update was effective for fiscal years beginning after December 15, 2013 and was effective for the Company for the fiscal quarter ended September 30, 2014. The adoption of this standard did not have a significant impact on the Company’s Consolidated Financial Statements. |
Discontinued Operation
Discontinued Operation | 12 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operation | Note 2. Discontinued Operation During December 2013, the Company completed the discontinuance of its tellurium product line by exiting all business activities associated with this product. This product line was previously serviced by II-VI Performance Metals and was included as part of the II-VI Performance Products segment. Prior periods have been restated to present this product line on a discontinued operation basis. The revenues and earnings (losses) of the tellurium product line have been reflected as a discontinued operation for the periods presented as follows ($000): June 30, 2015 2014 2013 ($000) Revenues $ - $ 1,849 $ 7,321 Earnings (loss) from discontinued operation before income taxes - 133 (6,789 ) Income tax benefit (expense) - - - Earnings (loss) from discontinued operation, net of taxes $ - $ 133 $ (6,789 ) |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories The components of inventories, net of reserves, were as follows: June 30, 2015 2014 ($000) Raw materials $ 71,210 $ 71,949 Work in progress 52,726 44,739 Finished goods 40,452 49,185 $ 164,388 $ 165,873 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consists of the following: June 30, 2015 2014 ($000) Land and land improvements $ 4,566 $ 2,381 Buildings and improvements 91,171 96,551 Machinery and equipment 366,560 335,408 Construction in progress 17,749 16,990 480,046 451,330 Less accumulated depreciation (276,234 ) (242,391 ) $ 203,812 $ 208,939 During the quarter ended March 31, 2015, as part of the Company’s ongoing restructuring of its military related businesses in the II-VI Performance Products segment, the Company implemented a plan to sell one of its manufacturing facilities located in New Port Richey, Florida. The Company anticipates completing the sale within the next twelve months, and has reclassified the carrying value of the land and building of approximately $1.2 million as assets held for sale and has included the carrying value in Prepaid and other current assets in the Consolidated Balance Sheets at June 30, 2015. Depreciation expense was $41.1 million, $41.8 million and $34.1 million for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. Included in the cost and accumulated depreciation of property, plant and equipment is the effect of foreign currency translation on the portion relating to the Company’s foreign subsidiaries. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5. Goodwill and Other Intangible Assets Goodwill represents the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon fair market value at the date of acquisition. Changes in the carrying amount of goodwill were as follows ($000): Year Ended June 30, 2015 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 44,041 $ 99,214 $ 52,890 $ 196,145 Foreign currency translation (463 ) 212 - (251 ) Balance-end of period $ 43,578 $ 99,426 $ 52,890 $ 195,894 Year Ended June 30, 2014 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 13,233 $ 56,713 $ 53,406 $ 123,352 Goodwill acquired 30,718 42,375 - 73,093 Goodwill adjustment - - (516 ) (516 ) Foreign currency translation 90 126 - 216 Balance-end of period $ 44,041 $ 99,214 $ 52,890 $ 196,145 The Company reviews the recoverability of goodwill at least annually and any time business conditions indicate a potential change in recoverability. The measurement of a potential impairment begins with comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company used a discounted cash flow (DCF) model and a market analysis to determine the current fair value of all its reporting units. A number of significant assumptions and estimates are involved in estimating the forecasted cash flows used in the DCF model, including markets and market shares, sales volume and pricing, costs to produce, working capital changes and income tax rates. Management considers historical experience and all available information at the time the fair values of the reporting units are estimated. The Company has the option to perform a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. As of April 1 of fiscal years 2015 and 2014, the Company completed its annual impairment tests of its reporting units. Based on the results of these analyses, the Company’s goodwill of $195.9 million as of June 30, 2015 and $196.1 million as of June 30, 2014 was not impaired. As the estimated fair value of the II-VI Photonics reporting unit was approximately 5% greater than its carrying value, the Company has concluded that this reporting unit is at risk of not passing step one of future goodwill impairment tests. In the event of unfavorable changes to the existing assumptions used in the impairment test such as the weighted average cost of capital (discount rate), growth rates and market multiples as well as changes in our internal structure, the carrying value of the Company’s goodwill could be impaired. Although the Company believes that the current assumptions and estimates are reasonable, supportable and appropriate, the II-VI Photonics reporting unit competes in a challenging environment with significant pricing pressure and rapidly changing technology and there can be no assurance that the estimates and assumptions made for purposes of the goodwill impairment test will prove to be accurate predictions of future performance. As a result of the July 1, 2014 segment realignment, the Company reassigned the existing goodwill balances at July 1, 2014 to the new reporting units utilizing a relative fair value allocation approach in accordance with authoritative accounting guidance. The Company also reviewed the recoverability of the carrying value of goodwill at its reporting units. The Company performed a qualitative assessment of goodwill prior to completing the quantitative test to determine whether it is more likely than not that the fair value of a reporting unit was less than its carrying amount, including goodwill and other intangible assets due to the short duration of time since the Company’s annual quantitative goodwill impairment test for fiscal year 2014, which was completed on April 1, 2014. The Company did not record any impairment of goodwill or long-lived assets as the qualitative assessment did not indicate deterioration in the fair value of its reporting units since the most recent annual impairment test. During the year ended June 30, 2014, the Company recorded an adjustment to goodwill of $0.5 million associated with the November 2012 acquisition of M Cubed Technologies, Inc. (“M Cubed”). This adjustment related to a change in deferred income tax assets and was recorded in conjunction with the finalization and filing of the M Cubed final income tax return. The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2015 and 2014 were as follows ($000): June 30, 2015 June 30, 2014 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 50,520 $ (18,838 ) $ 31,682 $ 50,505 $ (14,474 ) $ 36,031 Trade names 15,869 (1,111 ) 14,758 17,870 (1,037 ) 16,833 Customer Lists 102,489 (26,583 ) 75,906 102,839 (19,448 ) 83,391 Other 1,572 (1,456 ) 116 1,586 (1,437 ) 149 Total $ 170,450 $ (47,988 ) $ 122,462 $ 172,800 $ (36,396 ) $ 136,404 Amortization expense recorded on the intangible assets for the fiscal years ended June 30, 2015, 2014 and 2013 was $12.0 million, $11.3 million, and $6.7 million, respectively. The technology and patents are being amortized over a range of 60 to 240 months with a weighted-average remaining life of approximately 114 months. The customer lists are being amortized over 60 to 192 months with a weighted-average remaining life of approximately 146 months. During the year ended June 30, 2015, the Company recognized an impairment charge on two of its indefinite lived trade names in the II-VI Photonics reporting unit as these trademarks were abandoned as a result of the Company’s rebranding efforts. Total impairment recorded during the year ended June 30, 2015 was $2.0 million, which represented the entire carrying value of these two trademarks and was recorded in other expense (income), net in the Consolidated Statements of Earnings. In connection with past acquisitions, the Company acquired trade names with indefinite lives. The carrying amount of these trade names of $14.4 million as of June 30, 2015 is not amortized but tested annually for impairment. The Company completed its impairment test of these trade names with indefinite lives in the fourth quarter of fiscal years 2015 and 2014. Based on the results of these tests, the trade names were not impaired at June 30, 2015 or 2014. Included in the gross carrying amount and accumulated amortization of the Company’s patents, customer list and other component of intangible assets and goodwill is the effect of the foreign currency translation on the portion relating to the Company’s German and China subsidiaries. The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000): Year Ending June 30, 2016 $ 11,619 2017 11,607 2018 11,139 2019 10,706 2020 10,593 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt The components of debt were as follows ($000): June 30, 2015 2014 Line of credit, interest at LIBOR, as defined, plus 1.5% and 1.75%, respectively $ 108,500 $ 154,000 Term loan, interest at LIBOR, as defined, plus 1.25% 65,000 85,000 Yen denominated line of credit, interest at LIBOR, as defined, plus 0.625% 2,457 2,960 Total debt 175,957 241,960 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 155,957 $ 221,960 The Company’s First Amended and Restated Credit Agreement (the “Credit Facility”) provides for a revolving credit facility of $225 million, as well as a $100 million Term Loan. The Term Loan is being repaid in consecutive quarterly principal payments on the first business day of each January, April, July and October, with the first payment having commenced on October 1, 2013, as follows: (i) twenty consecutive quarterly installments of $5 million and (ii) a final installment of all remaining principal due and payable on the maturity date. The Credit Facility is unsecured, but is guaranteed by each existing and subsequently acquired or organized wholly-owned domestic subsidiaries of the Company. The Company has the option to request an increase to the size of the Amended Credit Facility in an aggregate additional amount not to exceed $100 million. The Credit Facility has a five-year term through September 2018 and has an interest rate of LIBOR, as defined in the agreement, plus 0.75% to 1.75% based on the Company’s ratio of consolidated indebtedness to consolidated EBITDA. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of June 30, 2015, the Company was in compliance with all financial covenants under its Credit Facility. The Company’s Yen denominated line of credit is a 500 million Yen ($4.1 million) facility that has a five-year term through June 2016 and has an interest rate equal to LIBOR, as defined in the loan agreement, plus 0.625% to 1.50%. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of June 30, 2015, the Company was in compliance with all covenants under the Yen facility. On August 21, 2015, the Company received and accepted a commitment from its lender to extend the maturity date of the Yen facility to August 2020 on substantially the same terms of the current facility. The lender’s commitment to provide the extension is subject to the satisfaction of certain customary conditions The Company had aggregate availability of $116.6 million and $71.0 million under its lines of credit as of June 30, 2015 and 2014, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. As of June 30, 2015 and 2014, total outstanding letters of credit supported by the credit facilities were $1.5 million. The weighted-average interest rate of total borrowings for each of the years ended June 30, 2015 and 2014 was 1.8%. The weighted-average of total borrowings for the fiscal years ended June 30, 2015 and 2014 was $210.0 million and $222.6 million, respectively. The Company has a line of credit facility with a Singapore bank which permits maximum borrowings in the local currency of approximately $0.3 million for the fiscal years ended June 30, 2015 and 2014. Borrowings are payable upon demand with interest charged at the rate of 1.00% above the bank’s prevailing prime lending rate. The interest rate was 5.25% at June 30, 2015 and June 30, 2014. At June 30, 2015 and 2014, there were no outstanding borrowings under this facility. There are no interim maturities or minimum payment requirements related to the credit facilities before their respective expiration dates. Interest and commitment fees paid during the fiscal year ended June 30, 2015, 2014 and 2013 were $4.0 million and $4.2 million and $1.1 million, respectively. Remaining annual principal payments under the Company’s existing credit facilities as of June 30, 2015 were as follows ($000): U.S. Dollar Term Yen Line Line of Period Loan of Credit Credit Total Year 1 $ 20,000 $ - $ - $ 20,000 Year 2 20,000 - - 20,000 Year 3 20,000 - - 20,000 Year 4 5,000 - 108,500 113,500 Year 5 - - - - Thereafter - 2,457 - 2,457 Total $ 65,000 $ 2,457 $ 108,500 $ 175,957 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes The components of income (loss) before income taxes were as follows: Year Ended June 30, 2015 2014 2013 ($000) U.S. income (loss) $ (5,326 ) $ (2,863 ) $ 19,253 Non-U.S. income 84,438 48,504 58,233 Total Earnings Before Tax $ 79,112 $ 45,641 $ 77,486 The components of income tax expense (benefit) from continuing operations were as follows: Year Ended June 30, 2015 2014 2013 ($000) Current: Federal $ (146 ) $ (1,067 ) $ 2,759 State 86 152 68 Foreign 16,978 12,675 13,977 Total Current $ 16,918 $ 11,760 $ 16,804 Deferred: Federal $ (2,762 ) $ (16 ) $ 1,721 State (251 ) 148 113 Foreign (768 ) (4,567 ) 128 Total Deferred $ (3,781 ) $ (4,435 ) $ 1,962 Total Income Tax Expense $ 13,137 $ 7,325 $ 18,766 Principal items comprising deferred income taxes were as follows: June 30, 2015 2014 ($000) Deferred income tax assets Inventory capitalization $ 6,614 $ 5,402 Non-deductible accruals 1,902 1,926 Accrued employee benefits 10,297 9,226 Net-operating loss and credit carryforwards 22,232 21,976 Share-based compensation expense 13,222 16,005 Other 1,468 577 Valuation allowances (2,713 ) (2,212 ) Total deferred income tax assets $ 53,022 $ 52,900 Deferred income tax liabilities Tax over book accumulated depreciation $ (15,937 ) $ (17,625 ) Intangible assets (25,132 ) (25,505 ) Tax on unremitted earnings (1,753 ) (714 ) Other (2,520 ) (2,072 ) Total deferred income tax liabilities $ (45,342 ) $ (45,916 ) Net deferred income taxes $ 7,680 $ 6,984 The reconciliation of income tax expense at the statutory federal rate to the reported income tax expense is as follows: Year Ended June 30, 2015 % 2014 % 2013 % ($000) Taxes at statutory rate $ 27,689 35 $ 15,974 35 $ 27,120 35 Increase (decrease) in taxes resulting from: State income taxes-net of federal benefit (196 ) - 254 1 168 - Taxes on non U.S. earnings (11,687 ) (15 ) (6,672 ) (15 ) (6,991 ) (9 ) Settlement of unrecognized tax benefits - - - - - - Research and manufacturing incentive deductions (2,573 ) (3 ) (2,190 ) (5 ) (1,458 ) (2 ) Other (96 ) - (41 ) - (73 ) - $ 13,137 17 $ 7,325 16 $ 18,766 24 During the fiscal years ended June 30, 2015, 2014, and 2013, net cash paid by the Company for income taxes was $13.0 million, $17.2 million, and $11.9 million, respectively. Our foreign subsidiaries in the Philippines operate under various tax holiday arrangements. The benefits of such arrangements phase out through the fiscal year ended June 30, 2019. The impact of the tax holidays on our effective rate is a reduction in the rate of 0.22%, 0.12% and 0.07% for the fiscal years ended June 30, 2015, 2014 and 2013 respectively. The cumulative amount of the Company’s foreign undistributed net earnings for which no deferred taxes have been provided was approximately $419 million at June 30, 2015. If the The sources of differences resulting in deferred income tax expense (benefit) from continuing operations and the related tax effect of each were as follows: Year Ended June 30, 2015 2014 2013 ($000) Depreciation and amortization $ (1,844 ) $ (3,581 ) $ (2,825 ) Inventory capitalization (1,273 ) 646 84 Net operating loss and credit carryforwards net of valuation allowances 418 533 4,786 Share-based compensation expense (1,029 ) (984 ) (3,487 ) Other (53 ) (1,049 ) 3,404 $ (3,781 ) $ (4,435 ) $ 1,962 The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2015: Type Amount Expiration Date ($000) Tax credit carryforwards: Federal research and development credits $ 6,179 June 2019-June 2035 Foreign tax credits 2,396 June 2024-June 2025 State tax credits 2,918 June 2016-June 2034 Operating loss carryforwards: Loss carryforwards – federal $ 24,766 June 2027-June 2029 Loss carryforwards – state 22,554 June 2017-June 2035 Loss carryforwards – foreign 9,146 June 2016-June 2024 The Company has recorded a valuation allowance against the majority of the foreign loss carryforwards and select state tax credit carryforwards. The Company’s federal loss carryforwards, federal research and development credit carryforwards, and certain state tax credits resulted from the Company’s acquisitions of Photop Aegis and M Cubed and are subject to various annual limitations under Section 382 of the Internal Revenue Code. Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2015, 2014 and 2013 were as follows: 2015 2014 2013 ($000) Balance at Beginning of Year $ 2,775 $ 3,181 $ 2,850 Increases in current year tax positions 2,450 298 338 Increases in prior year tax positions 203 2 - Decreases in prior year tax positions - - (7 ) Settlements - - - Expiration of statute of limitations (1,406 ) (706 ) - Balance at End of Year $ 4,022 $ 2,775 $ 3,181 The Company classifies all estimated and actual interest and penalties as income tax expense. During the fiscal year 2015, there was a benefit of $0.1 million of interest and penalties within tax expense. There was no interest and penalties within income tax expense for fiscal year 2014. During the fiscal years ended June 30, 2013, the Company recognized $0.1 million of expense for interest and penalties within income tax expense. The Company had $0.1 million, $0.2 million, and $0.2 million of interest and penalties accrued at June 30, 2015, 2014, and 2013, respectively. The increase in the Company’s current year tax positions are the result of certain unrecognized tax benefits associated with transfer pricing. The Company has classified the uncertain tax positions as non-current income tax liabilities as the amounts are not expected to be paid within one year. Including tax positions for which the Company determined that the tax position would not meet the more likely than not recognition threshold upon examination by the tax authorities based upon the technical merits of the position, the total estimated unrecognized tax benefit that, if recognized, would affect our effective tax rate was approximately $3.6 million and $2.8 million at June 30, 2015 and 2014, respectively. The Company expects a decrease of $0.7 million of unrecognized tax benefits during the next twelve months due to the expiration of statutes of limitation. Fiscal years 2012 to 2015 remain open to examination by the Internal Revenue Service, fiscal years 2011 to 2015 remain open to examination by certain state jurisdictions, and fiscal years 2008 to 2015 remain open to examination by certain foreign taxing jurisdictions. The Company’s fiscal years 2011 and 2012 California state income tax returns are currently under examination by the State of California’s Franchise Tax Board. The Company’s fiscal years 2012 and 2013 German income tax returns are currently under examination. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8. Earnings Per Share The following table sets forth the computation of earnings per share for the periods indicated. Weighted-average shares issuable upon the exercise of stock options that were not included in the calculation were 576,000, 507,000 and 470,000 for the fiscal years ended June 30, 2015, 2014 and 2013, respectively, because they were anti-dilutive. Year Ended June 30, 2015 2014 2013 ($000 except per share) Earnings from continuing operations $ 65,975 $ 38,316 $ 57,602 Earnings (loss) from discontinued operation - 133 (6,789 ) Net earnings from continuing operations $ 65,975 $ 38,449 $ 50,813 Divided by: Weighted average shares 61,219 62,248 62,411 Basic earnings (loss) per common share: Continuing operations $ 1.08 $ 0.62 $ 0.92 Discontinued operation $ - $ - $ (0.11 ) Consolidated $ 1.08 $ 0.62 $ 0.81 Earnings from continuing operations $ 65,975 $ 38,316 $ 57,602 Earnings (loss) from discontinued operation - 133 (6,789 ) Net earnings from continuing operations $ 65,975 $ 38,449 $ 50,813 Divided by: Weighted average shares 61,219 62,248 62,411 Dilutive effect of common stock equivalents 1,367 1,438 1,473 Diluted weighted average common shares 62,586 63,686 63,884 Diluted earnings (loss) per common share: Continuing operations $ 1.05 $ 0.60 $ 0.90 Discontinued operation $ - $ - $ (0.11 ) Consolidated $ 1.05 $ 0.60 $ 0.80 |
Operating Leases
Operating Leases | 12 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
Operating Leases | Note 9. Operating Leases The Company leases certain property under operating leases that expire at various dates. . Future rental commitments applicable to the operating leases at June 30, 2015 are as follows: Year Ending June 30, ($000) 2016 $ 12,875 2017 9,500 2018 6,275 2019 3,449 2020 3,065 Thereafter 16,649 Rent expense was approximately $15.0 million, $13.6 million, and $9.8 million for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shared-Based Compensation Plans | Note 10. Share-Based Compensation Plans The Company’s Board of Directors adopted the II-VI Incorporated Amended and Restated 2012 Omnibus Incentive Plan (the “Plan”) which was approved by the shareholders at the Annual Meeting in November 2014. The Plan provides for the grant of non-qualified stock options, stock appreciation rights, restricted shares, restricted share units, deferred shares, performance shares and performance share units to employees, officers and directors of the Company. The maximum number of shares of the Company’s Common Stock authorized for issuance under the Plan is limited to 4,900,000 shares of Common Stock, not including any remaining shares forfeited under the predecessor plans that may be rolled into the Plan. The Plan has vesting provisions predicated upon the death, retirement or disability of the grantee. As of June 30, 2015, there were approximately 3,502,571 shares available to be issued under the Plan, including forfeited shares from predecessor plans. The Company records share-based compensation expense for these awards in accordance with U.S. GAAP, which requires the recognition of the grant-date fair value of share-based compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. The Company accounts for cash-based stock appreciation rights, cash-based restricted share unit awards and cash-based performance share unit awards as liability awards, in accordance with applicable accounting standards. Share-based compensation expense for the fiscal years ended June 30, 2015, 2014 and 2013 is as follows ($000): Year Ended June 30, 2015 2014 2013 Stock Options and Cash-Based Stock Appreciation Rights $ 5,158 $ 5,818 $ 5,046 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 5,182 4,868 4,411 Performance Share Awards and Cash-Based Performance Share Unit Awards 2,649 2,311 3,200 $ 12,989 $ 12,997 $ 12,657 The share-based compensation expense is allocated approximately 20% to cost of goods sold and 80% to selling, general and administrative expense in the Consolidated Statements of Earnings, based on the employee classification of the grantees. Share-based compensation expense associated with liability awards was $1.6 million in fiscal year 2015 and $0.7 million in fiscal years 2014 and 2013, respectively. Stock Options and Cash-Based Stock Appreciation Rights: The Company utilized the Black-Scholes valuation model for estimating the fair value of stock option expense. During the fiscal years ended June 30, 2015, 2014 and 2013, the weighted-average fair value of options granted under the stock option plan was $5.76, $8.21 and $8.37, respectively, per option using the following assumptions: Year Ended June 30, 2015 2014 2013 Risk-free interest rate 1.71 % 1.71 % 0.98 % Expected volatility 41 % 47 % 49 % Expected life of options 5.94 years 5.56 years 5.66 years Dividend yield None None None The risk-free interest rate is derived from the average U.S. Treasury Note rate during the period, which approximates the rate in effect at the time of grant related to the expected life of the options. The risk-free interest rate shown above is the weighted average rate for all options granted during the fiscal year. Expected volatility is based on the historical volatility of the Company’s Common Stock over the period commensurate with the expected life of the options. The expected life calculation is based on the observed time to post-vesting exercise and/or forfeitures of options by our employees. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no current intention to pay cash dividends in the future. The estimated annualized forfeitures are based on the Company’s historical experience of option pre-vesting cancellations and are estimated at a rate of 17%. The Company will record additional expense in future periods if the actual forfeiture rate is lower than estimated, and will adjust expense in future periods if the actual forfeitures are higher than estimated. Stock option and cash-based stock appreciation rights activity during the fiscal year ended June 30, 2015 was as follows: Stock Options Cash-Based Stock Appreciation Rights Number of Weighted Average Number of Weighted Average Shares Exercise Price Rights Exercise Price Outstanding - July 1, 2014 4,704,554 $ 16.37 108,718 $ 18.28 Granted 648,540 $ 14.03 63,550 $ 14.19 Exercised (498,250 ) $ 10.41 (136 ) $ 14.03 Forfeited and Expired (290,020 ) $ 18.72 (4,960 ) $ 16.28 Outstanding - June 30, 2015 4,564,824 $ 16.54 167,172 $ 16.80 Exercisable - June 30, 2015 2,899,994 $ 16.42 31,672 $ 18.50 As of June 30, 2015, 2014 and 2013, the aggregate intrinsic value of stock options and cash-based stock appreciation rights outstanding and exercisable was $14.3 million, $5.2 million and $9.7 million, respectively. Aggregate intrinsic value represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year ended June 30, 2015, and the option’s exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2015. This amount varies based on the fair market value of the Company’s stock. The total intrinsic value of stock options and cash-based stock appreciation rights exercised during the fiscal years ended June 30, 2015, 2014, and 2013 was $2.9 million, $3.1 million, and $2.9 million, respectively. As of June 30, 2015, total unrecognized compensation cost related to non-vested stock options and cash-based stock appreciation rights was $7.7 million. This cost is expected to be recognized over a weighted-average period of approximately three years. Outstanding and exercisable stock options at June 30, 2015 were as follows: Stock Options and Cash-Based Stock Stock Options and Cash-Based Stock Appreciation Rights Outstanding Appreciation Rights Exercisable Weighted Weighted Weighted Weighted Number of Average Remaining Average Number of Average Remaining Average Range of Shares or Contractual Term Exercise Shares or Contractual Term Exercise Exercise Prices Rights (Years) Price Rights (Years) Price $8.80 - $13.23 933,284 2.97 $ 11.27 932,670 2.97 $ 11.27 $13.34 - $20.26 3,211,940 6.79 $ 16.81 1,434,334 5.17 $ 17.03 $20.47 - $27.18 586,772 3.38 $ 23.51 564,662 3.27 $ 23.49 4,731,996 5.51 $ 16.55 2,931,666 4.07 $ 16.44 Restricted Share Awards and Cash-Based Restricted Share Unit Awards: Restricted share awards and cash-based restricted share unit awards compensation expense was calculated based on the number of shares or units expected to be earned by the grantee multiplied by the stock price at the date of grant (for restricted share awards) or the stock price at the period end date (for cash-based restricted share unit awards), and is being recognized over the vesting period. Generally, the restricted share awards and restricted share unit awards have a three year cliff-vesting provision and an estimated forfeiture rate of 10.3%. Restricted share and cash-based restricted share unit activity during the fiscal year ended June 30, 2015, was as follows: Restricted Share Awards Cash-Based Restricted Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2014 784,035 $ 17.66 64,310 $ 17.72 Granted 323,365 $ 16.28 41,585 $ 14.74 Vested (273,125 ) $ 18.09 (415 ) $ 18.93 Forfeited (43,265 ) $ 17.69 (6,485 ) $ 16.13 Nonvested - June 30, 2015 791,010 $ 16.94 98,995 $ 16.57 As of June 30, 2015, total unrecognized compensation cost related to non-vested restricted share and cash-based restricted share unit awards was $5.8 million. This cost is expected to be recognized over a weighted-average period of approximately two years. The restricted share compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the date of grant and is being recognized over the vesting period. The cash-based restricted share unit compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the period-end date and is being recognized over the vesting period. The total fair value of the restricted share and cash-based restricted share unit awards granted during the years ended June 30, 2015, 2014 and 2013, was $5.9 million, $4.5 million and $7.0 million, respectively. The total fair value of restricted shares vested was $5.1 million, $3.8 million and $0.7 million during fiscal years 2015, 2014 and 2013, respectively. Performance Share Awards and Cash-Based Performance Share Unit Awards: The Compensation Committee of the Board of Directors of the Company has granted certain executive officers and employees performance share awards and performance share unit awards under the Plan. As of June 30, 2015, the Company had outstanding grants covering performance periods ranging from 24 to 48 months. These awards are intended to provide continuing emphasis on specified financial performance goals that the Company considers important contributors to the creation of long-term shareholder value. These awards are payable only if the Company achieves specified levels of financial performance during the performance periods. The performance share compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the date of grant, and is being recognized over the vesting period. The cash-based performance share unit compensation expense was calculated based on the number of shares expected to be earned multiplied by the stock price at the period-end date, and is being recognized over the vesting period. Performance share and cash-based performance share unit award activity relating to the plan during the year ended June 30, 2015, was as follows: Performance Share Awards Cash-Based Performance Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2014 332,180 $ 18.46 99,144 $ 18.94 Granted 152,226 $ 13.99 8,709 $ 13.99 Vested (73,631 ) $ 18.93 (1,663 ) $ 18.93 Forfeited (103,330 ) $ 18.88 (4,756 ) $ 18.93 Nonvested - June 30, 2015 307,445 $ 15.99 101,434 $ 18.52 As of June 30, 2015, total unrecognized compensation cost related to non-vested performance share and cash-based performance share unit awards was $2.6 million. This cost is expected to be recognized over a weighted-average period of approximately one year. The total fair value of the performance share and cash-based performance share unit awards granted during the fiscal years ended June 30, 2015, 2014 and 2013 was $2.3 million, $2.1 million and $5.9 million, respectively. The total fair value of performance shares vested during the fiscal years ended June 30, 2015, 2014 and 2013 was $1.6 million, $1.3 million and $2.6 million, respectively. |
Segment and Geographic Reportin
Segment and Geographic Reporting | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | Note 11. Segment and Geographic 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. Effective July 1, 2014, the Company realigned its reportable segments from five to three reporting segments to increase focus on end markets and customers, better align the Company’s businesses and technical processes, improve the line of sight on profitability and cash usage and streamline communications. The Company reports its financial results in the following three segments: (i) II-VI Laser Solutions, (ii) II-VI Photonics, and (iii) II-VI Performance Products, and the Company’s chief operating decision maker receives and reviews financial information based on these segments. The Company evaluates business segment performance based upon segment operating income, which is defined as earnings before income taxes, interest and other income or expense. The segments are managed separately due to the market, production requirements and facilities unique to each segment. The Company has the following reportable segments at June 30, 2015, which are the Company’s operating segments: (i) II-VI Laser Solutions, which consists of the Company’s infrared optics and material products businesses, II-VI HIGHYAG, the semiconductor laser portion of the former Active Optical Products segment, and smaller units of high-power laser technology from the former Near-Infrared Optics segment and certain remaining corporate activities (primarily corporate assets and capital expenditures); (ii) II-VI Photonics, which consists of the former Near-Infrared Optics segment and the pump laser and optical amplifier businesses of the former Active Optical Products segment; and (iii) II-VI Performance Products, which contains the former Military & Materials and Advanced Products Group segments. The II-VI Laser Solutions segment is located in the U.S., Singapore, China, Germany, Switzerland, Japan, Belgium, the U.K., Italy, South Korea and the Philippines. II-VI Laser Solutions is directed by the President of II-VI Laser Solutions, while each geographic location is directed by a general manager, and is further divided into production and administrative units that are directed by managers. II-VI Laser Solutions designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used primarily in high-power CO 2 The II-VI Photonics segment is located in the U.S., China, Vietnam, Australia, Germany, Japan, the U.K., Italy and Hong Kong. II-VI Photonics is directed by the President of II-VI Photonics and is further divided into production and administrative units that are directed by managers. II-VI Photonics manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other diverse consumer and commercial applications. In addition, the segment also manufactures pump lasers, and optical amplifiers and micro-optics for optical amplifiers for both terrestrial and submarine applications within the optical communications market. The II-VI Performance Products segment is located in the U.S., Vietnam, Japan, China, Germany and the Philippines. II-VI Performance Products is directed by a Corporate Executive Vice President, while each geographic location is directed by a general manager. II-VI Performance Products is further divided into production and administrative units that are directed by managers. II-VI Performance Products designs, manufactures and markets infrared optical components and high-precision optical assemblies for military, medical and commercial laser imaging applications. In addition, the segment designs, manufactures and markets unique engineered materials for thermo-electric and silicon carbide applications servicing the semiconductor, military and medical markets. The Company completed the discontinuance of its tellurium product line by exiting all business activities associated with this product in December 2013. This product line was previously serviced by II-VI Performance Metals and was included as part of the II-VI Performance Products segment. Segment information for all periods presented has been adjusted to properly reflect the tellurium product as a discontinued operation. The accounting policies of the segments are the same as those of the Company. The Company’s corporate expenses are allocated to the segments. The Company evaluates segment performance based upon reported segment operating income, which is defined as earnings from continuing operations before income taxes, interest and other income or expense. Inter-segment sales and transfers have been eliminated. The following tables summarize selected financial information of the Company’s operations by segment: II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2015 Revenues $ 287,881 $ 260,825 $ 193,255 $ - $ 741,961 Inter-segment revenues 21,021 13,210 9,325 (43,556 ) - Operating income 55,039 7,208 14,552 - 76,799 Interest expense - - - - (3,863 ) Other income, net - - - - 6,176 Income taxes - - - - (13,137 ) Net earnings - - - - 65,975 Depreciation and amortization 14,127 21,073 17,883 - 53,083 Expenditures for property, plant and equipment 27,349 11,324 13,640 - 52,313 Segment assets 330,308 450,763 277,093 - 1,058,164 Equity investment - - 11,914 - 11,914 Goodwill 43,578 99,426 52,890 - 195,894 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2014 Revenues $ 254,342 $ 216,493 $ 212,426 $ - $ 683,261 Inter-segment revenues 9,825 9,533 12,000 (31,358 ) - Operating income (loss) 24,457 (113 ) 22,142 - 46,486 Interest expense - - - - (4,479 ) Other income, net - - - - 3,634 Income taxes - - - - (7,325 ) Earnings from discontinued operation - - - - 133 Net earnings - - - - 38,449 Depreciation and amortization 15,018 20,123 17,957 - 53,098 Expenditures for property, plant and equipment 11,797 8,359 9,064 - 29,220 Segment assets 312,281 468,055 291,590 - 1,071,926 Equity investment - - 11,589 - 11,589 Goodwill 44,041 99,214 52,890 - 196,145 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2013 Revenues $ 217,604 $ 141,319 $ 192,152 $ - $ 551,075 Inter-segment revenues 5,671 3,950 9,458 (19,079 ) - Operating income 53,963 15,037 2,491 - 71,491 Interest expense - - - - (1,160 ) Other income, net - - - - 7,155 Income taxes - - - - (18,766 ) Loss from discontinued operation - - - - (6,789 ) Net earnings - - - - 51,931 Depreciation and amortization 8,554 17,181 15,057 - 40,792 Expenditures for property, plant and equipment 6,536 8,849 9,820 - 25,205 Geographic information for revenues from the country of origin, and long-lived assets from the country of origin, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows: Revenues Year-Ended June 30, 2015 2014 2013 ($000) United States $ 241,974 $ 263,493 $ 251,735 Non-United States China 140,586 114,247 123,306 Hong Kong 109,428 54,602 - Germany 77,524 69,983 59,628 Switzerland 56,940 70,260 10,268 Japan 52,864 38,110 29,462 Vietnam 24,307 23,141 29,425 Philippines 11,334 14,959 17,400 Italy 9,313 8,897 7,593 United Kingdom 7,749 7,148 6,865 Belgium 5,731 6,578 5,821 Singapore 3,897 8,273 6,280 Australia 314 3,570 3,292 Total Non-United States 499,987 419,768 299,340 $ 741,961 $ 683,261 $ 551,075 Long-Lived Assets June 30, 2015 2014 2013 ($000) United States $ 102,171 $ 109,138 $ 110,337 Non-United States China 46,794 45,667 43,139 Switzerland 26,384 22,524 5 Germany 15,790 16,129 2,107 Vietnam 7,985 9,107 10,081 Philippines 6,003 6,205 7,207 Hong Kong 2,476 5,111 - Other 1,282 2,218 3,244 Total Non-United States 106,714 106,961 65,783 $ 208,885 $ 216,099 $ 176,120 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Fair Value of Financial Instruments | Note 12. Fair Value of Financial Instruments The FASB defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous markets for the asset and liability in an orderly transaction between market participants at the measurement date. The Company estimates fair value of its financial instruments utilizing an established three-level hierarchy in accordance with U.S. GAAP. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: · Level 1 – Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. · Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. · Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurements. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. At June 30, 2015, the Company had foreign currency forward contracts recorded at fair value. The fair values of these instruments were measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for credit risk and restrictions and other terms specific to the contracts. The following tables provide a summary by level of the fair value of financial instruments that are measured on a recurring basis as of June 30, 2015 and 2014($000): Fair Value Measurements at June 30, 2015 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 130 $ - $ 130 $ - Fair Value Measurements at June 30, 2014 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2014 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 54 $ - $ 54 $ - The Company’s policy is to report transfers into and out of Levels 1 and 2 of the fair value hierarchy at fair values as of the beginning of the period in which the transfers occur. There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy during fiscal years 2015 and 2014. There were no Significant Unobservable Inputs (Level 3) during the fiscal year ended June 30, 2015. The fair values of cash and cash equivalents are considered Level 1 among the fair value hierarchy and approximate fair value because of the short-term maturity of those instruments. The Company’s borrowings are considered Level 2 among the fair value hierarchy and are variable interest rates and accordingly their carrying amounts approximate fair value. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 13. Derivative Instruments The Company, from time to time, purchases foreign currency forward exchange contracts, primarily in Japanese Yen, that permit it to sell specified amounts of these foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. These contracts are entered into to limit transactional exposure to changes in currency exchange rates of export sales transactions in which settlement will occur in future periods and which otherwise would expose the Company, on the basis of its aggregate net cash flows in respective currencies, to foreign currency risk. The Company has recorded the fair market value of these contracts in the Company’s financial statements. These contracts had a total notional amount of $10.8 million and $7.4 million at June 30, 2015 and June 30, 2014, respectively. As of June 30, 2015, these forward contracts had expiration dates ranging from July 2015 through October 2015, with Japanese Yen denominations individually between 250 million and 350 million Yen. The Company does not account for these contracts as hedges as defined by U.S. GAAP and records the change in the fair value of these contracts in Other expense (income), net in the Consolidated Statements of Earnings as they occur. The fair value measurement takes into consideration foreign currency rates and the current creditworthiness of the counterparties to these contracts, as applicable, and is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments and thus represents a Level 2 measurement. These contracts are recorded in prepaid and other current assets in the Company’s Consolidated Balance Sheets. The change in the fair value of these contracts for the fiscal years ended June 30, 2015, 2014 and 2013 was insignificant. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 14. Employee Benefit Plans Eligible U.S. employees of the Company participate in a profit sharing retirement plan. Contributions accrued for the plan are made at the discretion of the Company’s board of directors and were $2.8 million, $2.5 million, and $2.2 million for the years ended June 30, 2015, 2014 and 2013, respectively. The Company has an employee stock purchase plan available for employees who have completed six months of continuous employment with the Company. The employee may purchase the Company’s Common Stock at 5% below the prevailing market price. The amount of shares which may be bought by an employee during each fiscal year is limited to 10% of the employee’s base pay. This plan, as amended, limits the number of shares of Common Stock available for purchase to 1,600,000 shares. There were 514,031 and 543,234 shares of Common Stock available for purchase under the plan at June 30, 2015 and 2014, respectively. Switzerland Defined Benefit Plan In conjunction with the acquisition of Oclaro’s Switzerland-Based Semiconductor Laser Business, the Company assumed a pension plan covering employees of our Swiss subsidiary (the “Swiss Plan”). Employer and employee contributions are made to the Swiss Plan based on various percentages of salary and wages that vary according to employee age and other factors. Employer contributions to the Swiss Plan for year ended June 30, 2015 were $1.9 million. Expected employer contributions in fiscal year 2016 are $2.0 million. The funded status of the Swiss Plan in the fiscal years ended June 30, 2015 and 2014 were as follows: Year ended June 30, 2015 2014 Change in projected benefit obligation: Projected benefit obligation, beginning of period 39,390 $ 38,748 Service cost 2,791 3,375 Interest cost 744 812 Plan amendments - (1,661 ) Participant contributions 965 1,110 Benefits (paid) received (1,279 ) (3,959 ) Actuarial (gain) loss on obligation 1,520 (867 ) Currency translation adjustment (1,556 ) 1,832 Projected benefit obligation, end of period $ 42,575 $ 39,390 Change in plan assets: Plan assets at fair value, beginning of period 31,965 30,167 Actual return on plan assets 207 776 Employer contributions 1,914 2,253 Participant contributions 965 1,110 Benefits (paid) received (1,279 ) (3,959 ) Currency translation adjustment (1,263 ) 1,617 Plan assets at fair value, end of period $ 32,509 $ 31,965 Amounts recognized in consolidated balance sheets: Other non-current assets: Deferred tax asset $ 2,129 $ 1,570 Other non-current liabilities: Underfunded pension liability $ 10,066 7,425 Amounts recognized in accumulated other comprehensive income, net of tax: Pension adjustment $ (2,244 ) $ 1,443 Accumulated benefit obligation, end of period $ 38,734 $ 35,581 Net periodic pension cost associated with the Swiss Plan included the following components: Year ended June 30, 2015 2014 Service cost 2,791 $ 3,375 Interest cost 744 812 Expected return on plan assets (1,106 ) (1,338 ) Net amortization - - Net period pension cost $ 2,429 $ 2,849 The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2015 and 2014 using the following assumptions: Year ended June 30, 2015 2014 Discount rate 1.1 % 2.0 % Salary increase rate 2.0 % 2.0 % Expected return on plan assets 3.5 % 3.5 % Expected average remaining working life (in years) 13.1 13.1 The discount rate is based on assumed pension benefit maturity and estimates developed using the rate of return and yield curves for high quality Swiss corporate and government bonds. The salary increase rate is based on our best assessment for on-going increases over time. The expected long-term rate of return on plan assets is based on the expected asset allocation and taking into consideration historical long-term rates of return for the relevant asset categories. As is customary with Swiss pension plans, the assets of the plan are invested in a collective fund with multiple employers. We have no investment authority over the assets of the plan that are held and invested by a Swiss insurance company. The Swiss Plan assets are measured at fair value and are classified within Level 2 of the fair value hierarchy. The investment strategy of the Swiss Plan is managed by an independent asset manager with the objective of achieving a consistent long-term return which will provide sufficient funding for future pension obligations while limiting risk. The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2015, the Swiss Plan’s asset allocation was as follows: Year ended June 30, 2015 2014 Fixed income investments 22.0 % 22.0 % Equity investments 52.0 % 54.0 % Real estate 16.0 % 14.0 % Cash 8.0 % 8.0 % Alternative investments 2.0 % 2.0 % 100.0 % 100.0 % Estimated future benefit payments under the Swiss Plan are estimated to be as follows: Year Ending June 30, ($000) 2016 $ 1,649 2017 2,129 2018 1,250 2019 3,429 2020 1,164 Next five years 14,259 II-VI Performance Metals Defined Benefit Plan As a requirement of a collective bargaining agreement, II-Performance Metals maintains a defined benefit plan for substantially all of its employees. The plan provides for retirement benefits based on a certain percentage of the latest monthly salary of an employee per year of service. The pension liability was $0.6 million at June 30, 2015 and June 30, 2014. The Plan is an unfunded pension plan under which the Company makes payments directly to employees. As these payments are made directly by the Company, there are no separate assets utilized to fund this plan. Other Employee Benefit Plans The Company has no program for post-retirement health and welfare benefits. The II-VI Incorporated Deferred Compensation Plan (the “Compensation Plan”) is designed to allow officers and key employees of the Company to defer receipt of compensation into a trust fund for retirement purposes. Under the Compensation Plan, as it is currently implemented by the Company, eligible participants can elect to defer up to 100% of certain discretionary incentive compensation and certain equity awards into the Compensation Plan. The Compensation Plan is a nonqualified, defined contribution employees’ retirement plan. At the Company’s discretion, the Compensation Plan may be funded by the Company making contributions based on compensation deferrals, matching contributions and discretionary contributions. Compensation deferrals will be based on an election by the participant to defer a percentage of compensation under the Compensation Plan. All assets in the Compensation Plan are subject to claims of the Company’s creditors until such amounts are paid to the Compensation Plan participants. Employees of the Company made contributions to the Compensation Plan in the amounts of approximately $0.7 million, $1.9 million, and $1.8 million for the fiscal years ended June 30, 2015, 2014, and 2013, respectively. There were no employer contributions made to the Compensation Plan for the fiscal years ended June 30, 2015, 2014 and 2013. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Other Accrued Liabilities | Note 15. Other Accrued Liabilities The components of other accrued liabilities were as follows: Year Ended June 30, 2015 2014 ($000) Deferred revenue 8,767 4,318 Warranty reserve 3,251 2,859 Acquisition holdbacks $ - $ 10,000 Other accrued liabilities 12,558 14,344 $ 24,576 $ 31,521 In June 2013, the Company received notice from the noncontrolling interest holder of II-VI HIGHYAG of its intention to exercise a put option. The value of the put option was calculated using a formulaic model based upon earnings before interest, income taxes, depreciation and amortization (EBITDA), revenue growth and other variables. The price for the 25.07% noncontrolling interest the Company did not already own was $7.6 million; in addition, a dividend of $1.0 million also was declared and was paid to the noncontrolling interest holder in fiscal year 2014. These amounts were paid in August 2013. Changes in the carrying amount of the Company’s redeemable noncontrolling interest were as follows: Year Ended June 30, 2015 2014 2013 ($000) Balance at Beginning of Year $ - $ - $ 5,160 Net earnings attributable to redeemable noncontrolling interest - - 1,118 Other changes - - (585 ) Redemption value adjustment to redeemable noncontrolling interest - - 2,875 Reclassification of redeemable noncontrolling interest to Other accrued liabilities - - (8,568 ) Balance at End of Year $ - $ - $ - The following table summarizes the change in the carrying value of the company’s warranty reserve included in Other Accrued Liabilities as of and for the year ended June 30, 2015. Year Ended June 30, 2015 ($000) Balance-Beginning of Year $ 2,859 Settlements during the period (4,655 ) Additional warranty liability recorded 5,047 Balance-End of Year $ 3,251 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies The Company has purchase commitments for materials and supplies as part of the ordinary conduct of business. A portion of the commitments are long-term and are based on minimum purchase requirements. Certain short-term raw material purchase commitments have a variable price component which is based on market pricing at the time of purchase. Due to the proprietary nature of some of the Company’s materials and processes, certain contracts may contain penalty provisions for early termination. The Company does not believe that a significant amount of penalties are reasonably likely to be incurred under these commitments based upon historical experience and current expectation. Total future commitments are as follows: Year Ending June 30, ($000) 2016 $ 13,062 2017 2,537 2018 2,537 2019 - 2020 - |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Share Repurchase Programs | Note 17. Share Repurchase Programs In February 2014 and May 2012, the Board of Directors authorized the Company to purchase up to $20 million and $25 million, respectively, of its Common Stock. The repurchase programs called for shares to be purchased in the open market or in private transactions from time to time. Shares purchased by the Company are retained as treasury stock and available for general corporate purposes. During the fiscal years ended June 30, 2014, 2013 and 2012, the Company purchased 1,333,355 shares, 1,141,022 shares and 301,716 shares of its Common Stock for $20.0 million, $20.0 million, and $5.0 million, respectively, under the repurchase programs. In August 2014, the Board of Directors authorized the Company to purchase up to $50 million of its Common Stock. The repurchase program has no expiration and calls for shares to be purchased in the open market or in private transactions from time to time. Shares purchased by the Company will be retained as treasury stock and available for general corporate purposes. During the fiscal year ended June 30, 2015, the Company purchased 936,049 shares of its Common Stock for $12.7 million under this new repurchase program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2015 | |
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 years ended June 30, 2015, 2014, and 2013 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Income AOCI - June 30, 2012 $ 10,238 $ - $ 10,238 Other comprehensive income before reclassifications 5,362 - 5,362 Amounts reclassified from AOCI - - - Net current-period other comprehensive income 5,362 - 5,362 AOCI - June 30, 2013 15,600 - 15,600 Other comprehensive income before reclassifications 2,363 1,443 3,806 Amounts reclassified from AOCI - - - Net current-period other comprehensive income 2,363 1,443 3,806 AOCI - June 30, 2014 $ 17,963 $ 1,443 $ 19,406 Other comprehensive income before reclassifications (8,497 ) (2,244 ) (10,741 ) Amounts reclassified from AOCI - - - Net current-period other comprehensive income (8,497 ) (2,244 ) (10,741 ) AOCI - June 30, 2015 $ 9,466 $ (801 ) $ 8,665 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19. Subsequent Events On August 8, 2014, the Company’s Fuzhou manufacturing facility in the Fujian province of China was impacted by super typhoon Soudelor, as flood waters infiltrated certain manufacturing areas on the Company’s Fuzhou campus. The Fuzhou manufacturing facility primarily services II-VI Photop and II-VI Opticial Communications in the II-VI Photonics segment. Almost all of the manufacturing activities have been restored and the Company is assessing damages and working with its insurance providers to determine the extent of the damages. As of the filing date of this Annual Report on Form 10-K, the Company is not able to estimate the financial consequences related to the flood. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (unaudited) Fiscal Year 2015 September 30, December 31, March 31, June 30, Quarter Ended 2014 2014 2015 2015 ($000) 2015 Net revenues $ 185,833 $ 176,736 $ 182,709 $ 196,683 Cost of goods sold 117,974 113,718 116,984 121,687 Internal research and development 12,943 12,845 12,874 12,598 Selling, general and administrative 35,520 33,642 35,192 39,185 Interest expense 1,204 1,038 844 777 Other expense (income) - net 1,682 (9,295 ) 1,534 (97 ) Earnings before income taxes 16,510 24,788 15,281 22,533 Income taxes 4,208 2,692 773 5,464 Net Earnings $ 12,302 $ 22,096 $ 14,508 $ 17,069 Basic earnings per share: $ 0.20 $ 0.36 $ 0.24 $ 0.28 Diluted earnings per share: $ 0.20 $ 0.35 $ 0.23 $ 0.27 Fiscal Year 2014 September 30, December 31, March 31, June 30, Quarter Ended 2013 2013 2014 2014 ($000) 2014 Net revenues $ 150,020 $ 171,765 $ 173,555 $ 187,921 Cost of goods sold 93,709 118,371 118,865 125,600 Internal research and development 7,747 11,355 12,099 11,322 Selling, general and administrative 35,093 32,471 33,848 36,295 Interest expense 483 1,169 1,412 1,415 Other expense (income) - net 53 (1,125 ) (1,694 ) (868 ) Earnings from continuing operations before income taxes 12,935 9,524 9,025 14,157 Income taxes 3,243 2,086 494 1,502 Earnings from continuing operations 9,692 7,438 8,531 12,655 Earnings (loss) from discontinued operations, net of income taxes 2 131 - - Net Earnings $ 9,694 $ 7,569 $ 8,531 $ 12,655 Basic earnings per share: Continuing operations $ 0.16 $ 0.12 $ 0.14 $ 0.21 Discontinued operation $ - $ - $ - $ - Consolidated $ 0.16 $ 0.12 $ 0.14 $ 0.21 Diluted earnings per share: Continuing operations $ 0.15 $ 0.12 $ 0.13 $ 0.20 Discontinued operation $ - $ - $ - $ - Consolidated $ 0.15 $ 0.12 $ 0.13 $ 0.20 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II II-VI INCORPORATED AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED JUNE 30, 2015, 2014, 2013 AND (IN THOUSANDS OF DOLLARS) Additions Balance at Charged Charged Deduction Balance Beginning to to Other from at End of Year Expense Accounts Reserves of Year YEAR ENDED JUNE 30, 2015: Allowance for doubtful accounts $ 1,852 $ (482 ) $ - $ (322 ) (3) $ 1,048 Warranty reserves $ 2,859 $ 5,047 $ - $ (4,655 ) $ 3,251 YEAR ENDED JUNE 30, 2014: Allowance for doubtful accounts $ 1,479 $ 993 $ - $ (620 ) (3) $ 1,852 Warranty reserves $ 1,661 $ 1,868 $ 1,173 (1) $ (1,843 ) $ 2,859 YEAR ENDED JUNE 30, 2013: Allowance for doubtful accounts $ 1,536 $ (92 ) $ 179 (2) $ (144 ) (3) $ 1,479 Warranty reserves $ 1,247 $ 1,851 $ - $ (1,437 ) $ 1,661 (1) Relates to the warranty reserve acquired from the acquisitions. (2) Primarily relates to allowance for doubtful accounts from the acquisitions. (3) Primarily relates to write-offs of accounts receivable. |
Nature of Business and Summar31
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. |
Estimates | Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation. For II-VI Singapore Pte., Ltd. and its subsidiaries, II-VI Suisse S.a.r.l. and II-VI Laser Enterprise of the II-VI Laser Solutions segment, II-VI Network Solutions Division of the II-VI Photonics segment, and II-VI Performance Metals of the II-VI Performance Products segment the functional currency is the United States (U.S.) dollar. The determination of the functional currency is made based on the appropriate economic and management indicators. For all other foreign subsidiaries, the functional currency is the local currency. Assets and liabilities of those operations are translated into U.S. dollars using period-end exchange rates while income and expenses are translated using the average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income within shareholders’ equity in the accompanying Consolidated Balance Sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents with high credit quality financial institutions and to date have not experienced credit losses in these instruments. Cash of foreign subsidiaries is on deposit at banks in China, Vietnam, Singapore, Japan, Switzerland, the Netherlands, Germany, the Philippines, Belgium, Italy, Hong Kong, Australia, the United Kingdom (“U.K.”) and South Korea. |
Accounts Receivable | Accounts Receivable. The Company establishes an allowance for doubtful accounts based on historical experience and believes the collection of revenues, net of this allowance, is reasonably assured. The Company factored a portion of the accounts receivable of its Japan subsidiary during each of the years ended June 30, 2015 and 2014. Factoring is done with high credit quality financial institutions in Japan. During the years ended June 30, 2015 and 2014, $17.8 million and $12.7 million, respectively, of accounts receivable had been factored. As of June 30, 2015 and 2014, the amount included in other accrued liabilities representing the Company’s obligation to the bank for these receivables factored with recourse was immaterial. |
Inventories | Inventories. Inventories are valued at the lower of cost or market (“LCM”), with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. Market cannot exceed the net realizable value (i.e., estimated selling price in the ordinary course of business less reasonably predicted costs of completion and disposal) and market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin. In evaluating LCM, management also considers, if applicable, other factors as well, including known trends, market conditions, currency exchange rates and other such issues. The Company records an inventory reserve as a charge against earnings for all products on hand more than twelve to eighteen months depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional reserve is recorded for product on hand that is in excess of product sold to customers over the same periods noted above. Inventories are presented net of reserves. The reserves totaled $22.3 million and $12.0 million at June 30, 2015 and 2014, respectively. The increase in reserves for fiscal year 2015 was primarily due to excess inventory on hand at II-VI Laser Enterprise. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair market value upon acquisition. Major improvements are capitalized, while maintenance and repairs are generally expensed as incurred. The Company reviews its property, plant and equipment and other long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Depreciation for financial reporting purposes is computed primarily by the straight-line method over the estimated useful lives for building, building improvements and land improvements of 10 to 20 years and 3 to 20 years for machinery and equipment. |
Business Combinations | Business Combinations. The Company accounts for business acquisitions by establishing the acquisition-date fair value as the measurement for all assets acquired and liabilities assumed. Certain provisions of U.S. GAAP prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. |
Goodwill | Goodwill. The excess purchase price over the fair market value allocated to identifiable tangible and intangible net assets of businesses acquired is reported as goodwill in the accompanying Consolidated Balance Sheets. The Company tests goodwill for impairment at least annually as of April 1, or when events or changes in circumstances indicate that goodwill might be impaired. The evaluation of impairment involves comparing the current fair value of the Company’s reporting units to the recorded value (including goodwill). The Company uses a discounted cash flow (“DCF”) model and a market analysis to determine the current fair value of its reporting units. A number of significant assumptions and estimates are involved in estimating the forecasted cash flows used in the DCF model, including markets and market shares, sales volume and pricing, costs to produce, working capital changes and income tax rates. Management considers historical experience and all available information at the time the fair values of the reporting units are estimated. The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. |
Intangibles | Intangibles. Intangible assets are initially recorded at their cost or fair market value upon acquisition. Finite-lived intangible assets are amortized for financial reporting purposes using the straight-line method over the estimated useful lives of the assets ranging from 5 to 20 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1, or when events or changes in circumstances indicate that indefinite-lived intangible assets might be impaired. |
Equity Method Investments | Equity Method Investments. The Company has an equity investment in Guangdong Fuxin Electronic Technology (“Fuxin”) based in Guangdong Province, China of 20.2%, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at June 30, 2015 and June 30, 2014 was $11.9 million and $11.6 million, respectively. During the years ended June 30, 2015, 2014 and 2013, the Company’s pro-rata share of earnings from this investment was $0.9 million, $0.7 million and $1.0 million, respectively, and was recorded in other expense (income), net in the Consolidated Statements of Earnings. During the years ended June 30, 2015, 2014 and 2013 the Company recorded dividends from this equity investment of $0.6 million, $0.3 million and $0.5 million, respectively. |
Commitments and Contingencies | Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Such accruals are adjusted as further information develops or circumstances change. The Company had no loss contingency liabilities at June 30, 2015 related to commitments and contingencies. |
Accrued Bonus and Profit Sharing Contribution | Accrued Bonus and Profit Sharing Contribution. The Company records bonus and profit sharing estimates as a charge against earnings. These estimates are adjusted to actual based on final results of operations achieved during the fiscal year. Certain partial bonus amounts are paid on an interim basis, and the remainder is paid after the fiscal year end after the final determination of the applicable percentage or amounts. Other bonuses are paid annually. |
Warranty Reserve | Warranty Reserve. The Company records a warranty reserve as a charge against earnings based on a percentage of revenues utilizing actual returns over a period that approximates historical warranty experience with adjustments possible for changes in product lines or unusual conditions that come to the Company’s attention. Our warranty reserve balance at June 30, 2015 was approximately $3.3 million. |
Income Taxes | Income Taxes. Deferred income tax assets and liabilities are determined based on the differences between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount more likely than not to be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in facts and circumstances. For example, adjustments could result from significant amendments to existing tax law and the issuance of regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes that its estimates for uncertain tax positions are appropriate and sufficient to pay assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
Revenue Recognition | Revenue Recognition. The Company recognizes revenues for product shipments when persuasive evidence of a sales arrangement exists, the product has been shipped or delivered, the sale price is fixed or determinable and collectability is reasonably assured. Title and risk of loss passes from the Company to its customer at the time of shipment in most cases with the exception of certain customers. For these customers, title does not pass and revenue is not recognized until the customer has received the product at its physical location. We establish an allowance for doubtful accounts based on historical experience and believe the collection of revenues, net of this reserve, is reasonably assured. Our allowance for doubtful accounts balance at June 30, 2015 was approximately $1.0 million. Our reserve estimate has historically been proven to be materially correct based upon actual charges incurred. The Company’s revenue recognition policy is consistently applied across the Company’s segments, product lines and geographical locations. Further for the periods covered herein, we did not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges. Our distributors and agents are not granted price protection. Our distributors and agents, which comprise less than 10% of consolidated revenues, have no additional product return rights beyond the right to return defective products covered by our warranty policy. Revenues generated from transactions other than product shipments are contract related and have historically accounted for less than 2% of consolidated revenues. We believe our revenue recognition practices have adequately considered the requirements under U.S. GAAP. |
Shipping and Handling Costs | Shipping and Handling Costs. Shipping and handling costs billed to customers are included in revenues. Shipping and handling costs incurred by the Company are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. Total shipping and handling revenue and costs included in revenues and in selling, general and administrative expenses were not significant for the fiscal years ended June 30, 2015, 2014 and 2013. |
Research and Development | Research and Development. Internal research and development costs and costs not related to customer and government funded research and development contracts are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation. The Company follows U.S. GAAP in accounting for share-based compensation arrangements, which requires the recognition of the grant-date fair value of stock compensation in net earnings. The Company recognizes the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. |
Workers' Compensation | Workers’ Compensation. The Company is self-insured for certain losses related to workers’ compensation for the majority of its U.S. employees. When estimating the self-insurance liability, the Company considers a number of factors, including historical claims experience, demographic and severity factors and valuations provided by independent third-party consultants. At least annually, management reviews its assumptions and valuations to determine the adequacy of the self-insurance liability. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income. Accumulated other comprehensive income is a measure of all changes in shareholders’ equity that result from transactions and other economic events in the period other than transactions with owners. Accumulated other comprehensive income is a component of shareholders’ equity and consists of accumulated foreign currency translation adjustments of $9.5 million and $18.0 million as of June 30, 2015 and 2014, respectively, and pension adjustments of ($0.8) million and $1.4 million as of June 30, 2015 and 2014, respectively. |
Fair Value Measurements | Fair Value Measurements. The Company applies fair value accounting for all financial assets and liabilities that are required to be recognized or disclosed at fair value in the financial statements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact, and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. |
Leases | Leases. The Company classifies leases as operating in accordance with the provisions of lease accounting. Rent expense under noncancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. The current portion of unamortized deferred lease costs is included in other accrued liabilities and the long-term portion is included in other liabilities in the Consolidated Balance Sheets. |
Reclassification | Reclassifications. The Company corrected an immaterial error related to its long term deferred tax asset for share based compensation in the Consolidated Balance Sheet as of June 30, 2015. The recorded reclassification of $3.8 million reduced both the long term deferred tax asset and additional paid in capital (“APIC”) associated with the Company’s APIC tax pool. This reclassification had no impact on previously reported revenues, income tax expense and net earnings in any annual or interim periods. |
Recently Issued Financial Accounting Standards | Recently Issued Financial Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This update simplifies the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new inventory measurement requirements are effective for the Company’s 2018 fiscal year and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. The adoption of these changes is not expected to have a material impact to the Company’s Consolidated Financial Statements. In April 2015, the FASB issued as final, ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance about whether a cloud computing arrangement includes a software license. The update is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The update allows for the use of either a prospective or retrospective adoption approach. Management is currently evaluating the available transition methods and the potential impact of adoption on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. This ASU requires entities to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts. The guidance does not address situations in which debt issuance costs do not have an associated debt liability or exceed the carrying amount of the associated debt liability. This ASU will be effective beginning in fiscal year 2017. Management is currently evaluating the potential impact of adoption on the Company's Consolidated Financial Statements. In February 2015, the FASB issued as final, ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which affects reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The update allows for the use of either a full retrospective or a modified retrospective adoption approach. Management is currently evaluating the available transition methods and the potential impact of adoption on the Company’s Consolidated Financial Statements. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items. This ASU eliminates the requirement to separately present and disclose extraordinary and unusual items in the financial statements. This ASU will be effective beginning in 2016. The adoption of this ASU is not expected to have a material effect on our Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09: Revenue from Contracts with Customers (Topic 606) which supersedes virtually all existing revenue recognition guidance under U.S. GAAP. The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update allows for the use of either the retrospective or modified retrospective approach of adoption. On July 9, 2015 the FASB approved a one year deferral of the effective date of the update. The update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 (the first quarter of our fiscal year 2019). We have not yet selected a transition method and are currently evaluating the impact of this guidance on our Consolidated Financial Statements. In April 2014, the FASB issued ASU 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The new standard will be effective for annual periods beginning on or after December 15, 2014, with early adoption permitted and will be effective for the Company beginning in the first quarter of fiscal year 2016. The adoption of this standard is not expected to have a significant impact on the Company’s Consolidated Financial Statements. In July 2013, the FASB issued ASU 2013-11: Presentation of an Unrecognized Tax benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit carryforward Exists. The ASU changes how certain unrecognized tax benefits are to be presented on the consolidated balance sheet. This ASU clarified existing guidance to require that an unrecognized tax benefit, or a portion thereof, be presented in the consolidated balance sheet as a reduction to a deferred tax asset for a net operating loss ("NOL") carryforward, similar tax loss, or a tax credit carryforward, except when an NOL carryforward, similar tax loss, or tax credit carryforward is not available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. In such a case, the unrecognized tax benefit would be presented in the consolidated balance sheet as a liability. This update was effective for fiscal years beginning after December 15, 2013 and was effective for the Company for the fiscal quarter ended September 30, 2014. The adoption of this standard did not have a significant impact on the Company’s Consolidated Financial Statements. |
Discontinued Operation (Tables)
Discontinued Operation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Revenues and Earnings (Losses) of Discontinued Operation | The revenues and earnings (losses) of the tellurium product line have been reflected as a discontinued operation for the periods presented as follows ($000): June 30, 2015 2014 2013 ($000) Revenues $ - $ 1,849 $ 7,321 Earnings (loss) from discontinued operation before income taxes - 133 (6,789 ) Income tax benefit (expense) - - - Earnings (loss) from discontinued operation, net of taxes $ - $ 133 $ (6,789 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventories, Net of Reserves | The components of inventories, net of reserves, were as follows: June 30, 2015 2014 ($000) Raw materials $ 71,210 $ 71,949 Work in progress 52,726 44,739 Finished goods 40,452 49,185 $ 164,388 $ 165,873 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following: June 30, 2015 2014 ($000) Land and land improvements $ 4,566 $ 2,381 Buildings and improvements 91,171 96,551 Machinery and equipment 366,560 335,408 Construction in progress 17,749 16,990 480,046 451,330 Less accumulated depreciation (276,234 ) (242,391 ) $ 203,812 $ 208,939 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows ($000): Year Ended June 30, 2015 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 44,041 $ 99,214 $ 52,890 $ 196,145 Foreign currency translation (463 ) 212 - (251 ) Balance-end of period $ 43,578 $ 99,426 $ 52,890 $ 195,894 Year Ended June 30, 2014 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 13,233 $ 56,713 $ 53,406 $ 123,352 Goodwill acquired 30,718 42,375 - 73,093 Goodwill adjustment - - (516 ) (516 ) Foreign currency translation 90 126 - 216 Balance-end of period $ 44,041 $ 99,214 $ 52,890 $ 196,145 |
Gross Carrying Amount and Accumulated Amortization | The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2015 and 2014 were as follows ($000): June 30, 2015 June 30, 2014 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 50,520 $ (18,838 ) $ 31,682 $ 50,505 $ (14,474 ) $ 36,031 Trade names 15,869 (1,111 ) 14,758 17,870 (1,037 ) 16,833 Customer Lists 102,489 (26,583 ) 75,906 102,839 (19,448 ) 83,391 Other 1,572 (1,456 ) 116 1,586 (1,437 ) 149 Total $ 170,450 $ (47,988 ) $ 122,462 $ 172,800 $ (36,396 ) $ 136,404 |
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years | The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000): Year Ending June 30, 2016 $ 11,619 2017 11,607 2018 11,139 2019 10,706 2020 10,593 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of debt were as follows ($000): June 30, 2015 2014 Line of credit, interest at LIBOR, as defined, plus 1.5% and 1.75%, respectively $ 108,500 $ 154,000 Term loan, interest at LIBOR, as defined, plus 1.25% 65,000 85,000 Yen denominated line of credit, interest at LIBOR, as defined, plus 0.625% 2,457 2,960 Total debt 175,957 241,960 Current portion of long-term debt (20,000 ) (20,000 ) Long-term debt, less current portion $ 155,957 $ 221,960 |
Remaining Annual Amounts of Principal Payments | Remaining annual principal payments under the Company’s existing credit facilities as of June 30, 2015 were as follows ($000): U.S. Dollar Term Yen Line Line of Period Loan of Credit Credit Total Year 1 $ 20,000 $ - $ - $ 20,000 Year 2 20,000 - - 20,000 Year 3 20,000 - - 20,000 Year 4 5,000 - 108,500 113,500 Year 5 - - - - Thereafter - 2,457 - 2,457 Total $ 65,000 $ 2,457 $ 108,500 $ 175,957 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) from Continuing Operations Before Income Taxes | The components of income (loss) before income taxes were as follows: Year Ended June 30, 2015 2014 2013 ($000) U.S. income (loss) $ (5,326 ) $ (2,863 ) $ 19,253 Non-U.S. income 84,438 48,504 58,233 Total Earnings Before Tax $ 79,112 $ 45,641 $ 77,486 |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) from continuing operations were as follows: Year Ended June 30, 2015 2014 2013 ($000) Current: Federal $ (146 ) $ (1,067 ) $ 2,759 State 86 152 68 Foreign 16,978 12,675 13,977 Total Current $ 16,918 $ 11,760 $ 16,804 Deferred: Federal $ (2,762 ) $ (16 ) $ 1,721 State (251 ) 148 113 Foreign (768 ) (4,567 ) 128 Total Deferred $ (3,781 ) $ (4,435 ) $ 1,962 Total Income Tax Expense $ 13,137 $ 7,325 $ 18,766 |
Schedule of Principal Items Comprising Deferred Income Taxes | Principal items comprising deferred income taxes were as follows: June 30, 2015 2014 ($000) Deferred income tax assets Inventory capitalization $ 6,614 $ 5,402 Non-deductible accruals 1,902 1,926 Accrued employee benefits 10,297 9,226 Net-operating loss and credit carryforwards 22,232 21,976 Share-based compensation expense 13,222 16,005 Other 1,468 577 Valuation allowances (2,713 ) (2,212 ) Total deferred income tax assets $ 53,022 $ 52,900 Deferred income tax liabilities Tax over book accumulated depreciation $ (15,937 ) $ (17,625 ) Intangible assets (25,132 ) (25,505 ) Tax on unremitted earnings (1,753 ) (714 ) Other (2,520 ) (2,072 ) Total deferred income tax liabilities $ (45,342 ) $ (45,916 ) Net deferred income taxes $ 7,680 $ 6,984 |
Schedule of Reconciliation of Income Tax Expense at Statutory Federal Rate to Reported Income Tax Expense | The reconciliation of income tax expense at the statutory federal rate to the reported income tax expense is as follows: Year Ended June 30, 2015 % 2014 % 2013 % ($000) Taxes at statutory rate $ 27,689 35 $ 15,974 35 $ 27,120 35 Increase (decrease) in taxes resulting from: State income taxes-net of federal benefit (196 ) - 254 1 168 - Taxes on non U.S. earnings (11,687 ) (15 ) (6,672 ) (15 ) (6,991 ) (9 ) Settlement of unrecognized tax benefits - - - - - - Research and manufacturing incentive deductions (2,573 ) (3 ) (2,190 ) (5 ) (1,458 ) (2 ) Other (96 ) - (41 ) - (73 ) - $ 13,137 17 $ 7,325 16 $ 18,766 24 |
Schedule of Sources of Differences Resulting in Deferred Income Tax Expense (Benefit) | The sources of differences resulting in deferred income tax expense (benefit) from continuing operations and the related tax effect of each were as follows: Year Ended June 30, 2015 2014 2013 ($000) Depreciation and amortization $ (1,844 ) $ (3,581 ) $ (2,825 ) Inventory capitalization (1,273 ) 646 84 Net operating loss and credit carryforwards net of valuation allowances 418 533 4,786 Share-based compensation expense (1,029 ) (984 ) (3,487 ) Other (53 ) (1,049 ) 3,404 $ (3,781 ) $ (4,435 ) $ 1,962 |
Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards | The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2015: Type Amount Expiration Date ($000) Tax credit carryforwards: Federal research and development credits $ 6,179 June 2019-June 2035 Foreign tax credits 2,396 June 2024-June 2025 State tax credits 2,918 June 2016-June 2034 Operating loss carryforwards: Loss carryforwards – federal $ 24,766 June 2027-June 2029 Loss carryforwards – state 22,554 June 2017-June 2035 Loss carryforwards – foreign 9,146 June 2016-June 2024 |
Schedule of Changes in Liability for Unrecognized Tax Benefits | Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2015, 2014 and 2013 were as follows: 2015 2014 2013 ($000) Balance at Beginning of Year $ 2,775 $ 3,181 $ 2,850 Increases in current year tax positions 2,450 298 338 Increases in prior year tax positions 203 2 - Decreases in prior year tax positions - - (7 ) Settlements - - - Expiration of statute of limitations (1,406 ) (706 ) - Balance at End of Year $ 4,022 $ 2,775 $ 3,181 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The following table sets forth the computation of earnings per share for the periods indicated. Weighted-average shares issuable upon the exercise of stock options that were not included in the calculation were 576,000, 507,000 and 470,000 for the fiscal years ended June 30, 2015, 2014 and 2013, respectively, because they were anti-dilutive. Year Ended June 30, 2015 2014 2013 ($000 except per share) Earnings from continuing operations $ 65,975 $ 38,316 $ 57,602 Earnings (loss) from discontinued operation - 133 (6,789 ) Net earnings from continuing operations $ 65,975 $ 38,449 $ 50,813 Divided by: Weighted average shares 61,219 62,248 62,411 Basic earnings (loss) per common share: Continuing operations $ 1.08 $ 0.62 $ 0.92 Discontinued operation $ - $ - $ (0.11 ) Consolidated $ 1.08 $ 0.62 $ 0.81 Earnings from continuing operations $ 65,975 $ 38,316 $ 57,602 Earnings (loss) from discontinued operation - 133 (6,789 ) Net earnings from continuing operations $ 65,975 $ 38,449 $ 50,813 Divided by: Weighted average shares 61,219 62,248 62,411 Dilutive effect of common stock equivalents 1,367 1,438 1,473 Diluted weighted average common shares 62,586 63,686 63,884 Diluted earnings (loss) per common share: Continuing operations $ 1.05 $ 0.60 $ 0.90 Discontinued operation $ - $ - $ (0.11 ) Consolidated $ 1.05 $ 0.60 $ 0.80 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
Operating Lease Future Rental Commitments | Future rental commitments applicable to the operating leases at June 30, 2015 are as follows: Year Ending June 30, ($000) 2016 $ 12,875 2017 9,500 2018 6,275 2019 3,449 2020 3,065 Thereafter 16,649 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Expense by Award Type | Share-based compensation expense for the fiscal years ended June 30, 2015, 2014 and 2013 is as follows ($000): Year Ended June 30, 2015 2014 2013 Stock Options and Cash-Based Stock Appreciation Rights $ 5,158 $ 5,818 $ 5,046 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 5,182 4,868 4,411 Performance Share Awards and Cash-Based Performance Share Unit Awards 2,649 2,311 3,200 $ 12,989 $ 12,997 $ 12,657 |
Schedule of Fair Value Assumptions under Stock Option Plan | The Company utilized the Black-Scholes valuation model for estimating the fair value of stock option expense. During the fiscal years ended June 30, 2015, 2014 and 2013, the weighted-average fair value of options granted under the stock option plan was $5.76, $8.21 and $8.37, respectively, per option using the following assumptions: Year Ended June 30, 2015 2014 2013 Risk-free interest rate 1.71 % 1.71 % 0.98 % Expected volatility 41 % 47 % 49 % Expected life of options 5.94 years 5.56 years 5.66 years Dividend yield None None None |
Stock Option and Cash-Based Stock Appreciation Rights Activity | Stock option and cash-based stock appreciation rights activity during the fiscal year ended June 30, 2015 was as follows: Stock Options Cash-Based Stock Appreciation Rights Number of Weighted Average Number of Weighted Average Shares Exercise Price Rights Exercise Price Outstanding - July 1, 2014 4,704,554 $ 16.37 108,718 $ 18.28 Granted 648,540 $ 14.03 63,550 $ 14.19 Exercised (498,250 ) $ 10.41 (136 ) $ 14.03 Forfeited and Expired (290,020 ) $ 18.72 (4,960 ) $ 16.28 Outstanding - June 30, 2015 4,564,824 $ 16.54 167,172 $ 16.80 Exercisable - June 30, 2015 2,899,994 $ 16.42 31,672 $ 18.50 |
Share-Based Compensation Outstanding and Exercisable Options | Outstanding and exercisable stock options at June 30, 2015 were as follows: Stock Options and Cash-Based Stock Stock Options and Cash-Based Stock Appreciation Rights Outstanding Appreciation Rights Exercisable Weighted Weighted Weighted Weighted Number of Average Remaining Average Number of Average Remaining Average Range of Shares or Contractual Term Exercise Shares or Contractual Term Exercise Exercise Prices Rights (Years) Price Rights (Years) Price $8.80 - $13.23 933,284 2.97 $ 11.27 932,670 2.97 $ 11.27 $13.34 - $20.26 3,211,940 6.79 $ 16.81 1,434,334 5.17 $ 17.03 $20.47 - $27.18 586,772 3.38 $ 23.51 564,662 3.27 $ 23.49 4,731,996 5.51 $ 16.55 2,931,666 4.07 $ 16.44 |
Restricted Share and Cash-Based Restricted Share Unit Activity | Restricted share and cash-based restricted share unit activity during the fiscal year ended June 30, 2015, was as follows: Restricted Share Awards Cash-Based Restricted Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2014 784,035 $ 17.66 64,310 $ 17.72 Granted 323,365 $ 16.28 41,585 $ 14.74 Vested (273,125 ) $ 18.09 (415 ) $ 18.93 Forfeited (43,265 ) $ 17.69 (6,485 ) $ 16.13 Nonvested - June 30, 2015 791,010 $ 16.94 98,995 $ 16.57 |
Performance Share and Cash-Based Performance Share Unit Award Activity | Performance share and cash-based performance share unit award activity relating to the plan during the year ended June 30, 2015, was as follows: Performance Share Awards Cash-Based Performance Share Units Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2014 332,180 $ 18.46 99,144 $ 18.94 Granted 152,226 $ 13.99 8,709 $ 13.99 Vested (73,631 ) $ 18.93 (1,663 ) $ 18.93 Forfeited (103,330 ) $ 18.88 (4,756 ) $ 18.93 Nonvested - June 30, 2015 307,445 $ 15.99 101,434 $ 18.52 |
Segment and Geographic Report41
Segment and Geographic Reporting (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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: II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2015 Revenues $ 287,881 $ 260,825 $ 193,255 $ - $ 741,961 Inter-segment revenues 21,021 13,210 9,325 (43,556 ) - Operating income 55,039 7,208 14,552 - 76,799 Interest expense - - - - (3,863 ) Other income, net - - - - 6,176 Income taxes - - - - (13,137 ) Net earnings - - - - 65,975 Depreciation and amortization 14,127 21,073 17,883 - 53,083 Expenditures for property, plant and equipment 27,349 11,324 13,640 - 52,313 Segment assets 330,308 450,763 277,093 - 1,058,164 Equity investment - - 11,914 - 11,914 Goodwill 43,578 99,426 52,890 - 195,894 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2014 Revenues $ 254,342 $ 216,493 $ 212,426 $ - $ 683,261 Inter-segment revenues 9,825 9,533 12,000 (31,358 ) - Operating income (loss) 24,457 (113 ) 22,142 - 46,486 Interest expense - - - - (4,479 ) Other income, net - - - - 3,634 Income taxes - - - - (7,325 ) Earnings from discontinued operation - - - - 133 Net earnings - - - - 38,449 Depreciation and amortization 15,018 20,123 17,957 - 53,098 Expenditures for property, plant and equipment 11,797 8,359 9,064 - 29,220 Segment assets 312,281 468,055 291,590 - 1,071,926 Equity investment - - 11,589 - 11,589 Goodwill 44,041 99,214 52,890 - 196,145 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Eliminations Total ($000) 2013 Revenues $ 217,604 $ 141,319 $ 192,152 $ - $ 551,075 Inter-segment revenues 5,671 3,950 9,458 (19,079 ) - Operating income 53,963 15,037 2,491 - 71,491 Interest expense - - - - (1,160 ) Other income, net - - - - 7,155 Income taxes - - - - (18,766 ) Loss from discontinued operation - - - - (6,789 ) Net earnings - - - - 51,931 Depreciation and amortization 8,554 17,181 15,057 - 40,792 Expenditures for property, plant and equipment 6,536 8,849 9,820 - 25,205 |
Geographic Information for Revenues and Long-Lived Assets | Geographic information for revenues from the country of origin, and long-lived assets from the country of origin, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows: Revenues Year-Ended June 30, 2015 2014 2013 ($000) United States $ 241,974 $ 263,493 $ 251,735 Non-United States China 140,586 114,247 123,306 Hong Kong 109,428 54,602 - Germany 77,524 69,983 59,628 Switzerland 56,940 70,260 10,268 Japan 52,864 38,110 29,462 Vietnam 24,307 23,141 29,425 Philippines 11,334 14,959 17,400 Italy 9,313 8,897 7,593 United Kingdom 7,749 7,148 6,865 Belgium 5,731 6,578 5,821 Singapore 3,897 8,273 6,280 Australia 314 3,570 3,292 Total Non-United States 499,987 419,768 299,340 $ 741,961 $ 683,261 $ 551,075 Long-Lived Assets June 30, 2015 2014 2013 ($000) United States $ 102,171 $ 109,138 $ 110,337 Non-United States China 46,794 45,667 43,139 Switzerland 26,384 22,524 5 Germany 15,790 16,129 2,107 Vietnam 7,985 9,107 10,081 Philippines 6,003 6,205 7,207 Hong Kong 2,476 5,111 - Other 1,282 2,218 3,244 Total Non-United States 106,714 106,961 65,783 $ 208,885 $ 216,099 $ 176,120 |
Fair Value of Financial Instr42
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis | The following tables provide a summary by level of the fair value of financial instruments that are measured on a recurring basis as of June 30, 2015 and 2014($000): Fair Value Measurements at June 30, 2015 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 130 $ - $ 130 $ - Fair Value Measurements at June 30, 2014 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2014 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 54 $ - $ 54 $ - |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations and Plan Assets | The funded status of the Swiss Plan in the fiscal years ended June 30, 2015 and 2014 were as follows: Year ended June 30, 2015 2014 Change in projected benefit obligation: Projected benefit obligation, beginning of period 39,390 $ 38,748 Service cost 2,791 3,375 Interest cost 744 812 Plan amendments - (1,661 ) Participant contributions 965 1,110 Benefits (paid) received (1,279 ) (3,959 ) Actuarial (gain) loss on obligation 1,520 (867 ) Currency translation adjustment (1,556 ) 1,832 Projected benefit obligation, end of period $ 42,575 $ 39,390 Change in plan assets: Plan assets at fair value, beginning of period 31,965 30,167 Actual return on plan assets 207 776 Employer contributions 1,914 2,253 Participant contributions 965 1,110 Benefits (paid) received (1,279 ) (3,959 ) Currency translation adjustment (1,263 ) 1,617 Plan assets at fair value, end of period $ 32,509 $ 31,965 Amounts recognized in consolidated balance sheets: Other non-current assets: Deferred tax asset $ 2,129 $ 1,570 Other non-current liabilities: Underfunded pension liability $ 10,066 7,425 Amounts recognized in accumulated other comprehensive income, net of tax: Pension adjustment $ (2,244 ) $ 1,443 Accumulated benefit obligation, end of period $ 38,734 $ 35,581 |
Schedule of Net Periodic Pension Costs | Net periodic pension cost associated with the Swiss Plan included the following components: Year ended June 30, 2015 2014 Service cost 2,791 $ 3,375 Interest cost 744 812 Expected return on plan assets (1,106 ) (1,338 ) Net amortization - - Net period pension cost $ 2,429 $ 2,849 |
Schedule of Projected and Accumulated Benefit Obligations Rates | The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2015 and 2014 using the following assumptions: Year ended June 30, 2015 2014 Discount rate 1.1 % 2.0 % Salary increase rate 2.0 % 2.0 % Expected return on plan assets 3.5 % 3.5 % Expected average remaining working life (in years) 13.1 13.1 |
Schedule of Swiss Plan's Asset Allocation | The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2015, the Swiss Plan’s asset allocation was as follows: Year ended June 30, 2015 2014 Fixed income investments 22.0 % 22.0 % Equity investments 52.0 % 54.0 % Real estate 16.0 % 14.0 % Cash 8.0 % 8.0 % Alternative investments 2.0 % 2.0 % 100.0 % 100.0 % |
Schedule of Estimated Future Benefit Payments Under Swiss Plan | Estimated future benefit payments under the Swiss Plan are estimated to be as follows: Year Ending June 30, ($000) 2016 $ 1,649 2017 2,129 2018 1,250 2019 3,429 2020 1,164 Next five years 14,259 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Components of Other Accrued Liabilities | The components of other accrued liabilities were as follows: Year Ended June 30, 2015 2014 ($000) Deferred revenue 8,767 4,318 Warranty reserve 3,251 2,859 Acquisition holdbacks $ - $ 10,000 Other accrued liabilities 12,558 14,344 $ 24,576 $ 31,521 |
Changes in the Carrying Amount of the Company’s Redeemable Noncontrolling Interest | Changes in the carrying amount of the Company’s redeemable noncontrolling interest were as follows: Year Ended June 30, 2015 2014 2013 ($000) Balance at Beginning of Year $ - $ - $ 5,160 Net earnings attributable to redeemable noncontrolling interest - - 1,118 Other changes - - (585 ) Redemption value adjustment to redeemable noncontrolling interest - - 2,875 Reclassification of redeemable noncontrolling interest to Other accrued liabilities - - (8,568 ) Balance at End of Year $ - $ - $ - |
Change in Carrying Value of Company's Warranty Reserve | The following table summarizes the change in the carrying value of the company’s warranty reserve included in Other Accrued Liabilities as of and for the year ended June 30, 2015. Year Ended June 30, 2015 ($000) Balance-Beginning of Year $ 2,859 Settlements during the period (4,655 ) Additional warranty liability recorded 5,047 Balance-End of Year $ 3,251 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Schedule of Future Commitments | Total future commitments are as follows: Year Ending June 30, ($000) 2016 $ 13,062 2017 2,537 2018 2,537 2019 - 2020 - |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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 years ended June 30, 2015, 2014, and 2013 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Income AOCI - June 30, 2012 $ 10,238 $ - $ 10,238 Other comprehensive income before reclassifications 5,362 - 5,362 Amounts reclassified from AOCI - - - Net current-period other comprehensive income 5,362 - 5,362 AOCI - June 30, 2013 15,600 - 15,600 Other comprehensive income before reclassifications 2,363 1,443 3,806 Amounts reclassified from AOCI - - - Net current-period other comprehensive income 2,363 1,443 3,806 AOCI - June 30, 2014 $ 17,963 $ 1,443 $ 19,406 Other comprehensive income before reclassifications (8,497 ) (2,244 ) (10,741 ) Amounts reclassified from AOCI - - - Net current-period other comprehensive income (8,497 ) (2,244 ) (10,741 ) AOCI - June 30, 2015 $ 9,466 $ (801 ) $ 8,665 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Fiscal Year 2015 September 30, December 31, March 31, June 30, Quarter Ended 2014 2014 2015 2015 ($000) 2015 Net revenues $ 185,833 $ 176,736 $ 182,709 $ 196,683 Cost of goods sold 117,974 113,718 116,984 121,687 Internal research and development 12,943 12,845 12,874 12,598 Selling, general and administrative 35,520 33,642 35,192 39,185 Interest expense 1,204 1,038 844 777 Other expense (income) - net 1,682 (9,295 ) 1,534 (97 ) Earnings before income taxes 16,510 24,788 15,281 22,533 Income taxes 4,208 2,692 773 5,464 Net Earnings $ 12,302 $ 22,096 $ 14,508 $ 17,069 Basic earnings per share: $ 0.20 $ 0.36 $ 0.24 $ 0.28 Diluted earnings per share: $ 0.20 $ 0.35 $ 0.23 $ 0.27 Fiscal Year 2014 September 30, December 31, March 31, June 30, Quarter Ended 2013 2013 2014 2014 ($000) 2014 Net revenues $ 150,020 $ 171,765 $ 173,555 $ 187,921 Cost of goods sold 93,709 118,371 118,865 125,600 Internal research and development 7,747 11,355 12,099 11,322 Selling, general and administrative 35,093 32,471 33,848 36,295 Interest expense 483 1,169 1,412 1,415 Other expense (income) - net 53 (1,125 ) (1,694 ) (868 ) Earnings from continuing operations before income taxes 12,935 9,524 9,025 14,157 Income taxes 3,243 2,086 494 1,502 Earnings from continuing operations 9,692 7,438 8,531 12,655 Earnings (loss) from discontinued operations, net of income taxes 2 131 - - Net Earnings $ 9,694 $ 7,569 $ 8,531 $ 12,655 Basic earnings per share: Continuing operations $ 0.16 $ 0.12 $ 0.14 $ 0.21 Discontinued operation $ - $ - $ - $ - Consolidated $ 0.16 $ 0.12 $ 0.14 $ 0.21 Diluted earnings per share: Continuing operations $ 0.15 $ 0.12 $ 0.13 $ 0.20 Discontinued operation $ - $ - $ - $ - Consolidated $ 0.15 $ 0.12 $ 0.13 $ 0.20 |
Nature of Business and Summar48
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($)Segment | Jun. 30, 2013USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of reporting segments | Segment | 3 | 5 | |
Accounts receivable factored | $ 17,800,000 | $ 12,700,000 | |
Inventory reserve amount | 22,300,000 | 12,000,000 | |
Total carrying value of equity method investment | 11,914,000 | 11,589,000 | |
Pro-rata share of earnings from equity method investment | 948,000 | 698,000 | $ 1,048,000 |
Loss contingency liability | 0 | ||
Warranty reserve | 3,251,000 | 2,859,000 | |
Allowance for doubtful accounts | $ 1,048,000 | 1,852,000 | |
Maximum percentage of total revenues represented by distributors and agents that are not granted price protection | 10.00% | ||
Maximum percentage of contract related revenues | 2.00% | ||
Accumulated foreign currency translation adjustments, net of income taxes | $ 9,500,000 | 18,000,000 | |
Accumulated pension adjustments, net of income taxes | (800,000) | 1,400,000 | |
Reclassification recorded amount | $ 3,800,000 | ||
Guangdong Fuxin Electronic Technology | |||
Significant Accounting Policies [Line Items] | |||
Non-controlling minority interest | 20.20% | ||
Pro-rata share of earnings from equity method investment | $ 900,000 | 700,000 | 1,000,000 |
Dividends from equity investment | $ 600,000 | $ 300,000 | $ 500,000 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets useful life, years | 5 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets useful life, years | 20 years | ||
Building improvements and land improvements | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment estimated useful lives, years | 10 years | ||
Building improvements and land improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment estimated useful lives, years | 20 years | ||
Machinery and equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment estimated useful lives, years | 3 years | ||
Machinery and equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment estimated useful lives, years | 20 years |
Summary of Revenues and Earning
Summary of Revenues and Earnings (Losses) of Discontinued Operation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | ||||
Earnings (loss) from discontinued operation, net of taxes | $ 131 | $ 2 | $ 133 | $ (6,789) |
Tellurium product line | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | ||||
Revenues | 1,849 | 7,321 | ||
Earnings (loss) from discontinued operation before income taxes | 133 | (6,789) | ||
Earnings (loss) from discontinued operation, net of taxes | $ 133 | $ (6,789) |
Components of Inventories, Net
Components of Inventories, Net of Reserves (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 71,210 | $ 71,949 |
Work in progress | 52,726 | 44,739 |
Finished goods | 40,452 | 49,185 |
Inventories, Total | $ 164,388 | $ 165,873 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Property Plant And Equipment [Abstract] | ||
Land and land improvements | $ 4,566 | $ 2,381 |
Buildings and improvements | 91,171 | 96,551 |
Machinery and equipment | 366,560 | 335,408 |
Construction in progress | 17,749 | 16,990 |
Property, Plant and Equipment, gross | 480,046 | 451,330 |
Less accumulated depreciation | (276,234) | (242,391) |
Property, Plant and Equipment, net | $ 203,812 | $ 208,939 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property Plant And Equipment [Abstract] | |||
Carrying value of land and building | $ 1,200 | ||
Depreciation expense | $ 41,114 | $ 41,805 | $ 34,135 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | ||
Balance-beginning of period | $ 196,145 | $ 123,352 |
Goodwill acquired | 73,093 | |
Goodwill adjustment | (516) | |
Foreign currency translation | (251) | 216 |
Balance-end of period | 195,894 | 196,145 |
II-VI Laser Solutions | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 44,041 | 13,233 |
Goodwill acquired | 30,718 | |
Foreign currency translation | (463) | 90 |
Balance-end of period | 43,578 | 44,041 |
II-VI Photonics | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 99,214 | 56,713 |
Goodwill acquired | 42,375 | |
Foreign currency translation | 212 | 126 |
Balance-end of period | 99,426 | 99,214 |
II- VI Performance Products | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 52,890 | 53,406 |
Goodwill adjustment | (516) | |
Balance-end of period | $ 52,890 | $ 52,890 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill | $ 195,894 | $ 196,145 | $ 123,352 |
Percentage of fair value greater than carrying value | 5.00% | ||
Amortization expense recorded on intangible assets | $ 12,000 | $ 11,300 | $ 6,700 |
Impairment of intangible assets | 1,964 | ||
Carrying amount of indefinite trade names acquired | $ 14,400 | ||
Minimum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 5 years | ||
Maximum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 20 years | ||
Technology and Patents | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Remaining amortization period of patents and customer lists, in months | 114 months | ||
Technology and Patents | Minimum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 60 months | ||
Technology and Patents | Maximum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 240 months | ||
Customer Lists | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Remaining amortization period of patents and customer lists, in months | 146 months | ||
Customer Lists | Minimum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 60 months | ||
Customer Lists | Maximum | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Amortization period of finite lived intangible assets, in months | 192 months |
Gross Carrying Amount and Accum
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 170,450 | $ 172,800 |
Accumulated Amortization | (47,988) | (36,396) |
Net Book Value | 122,462 | 136,404 |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,869 | 17,870 |
Accumulated Amortization | (1,111) | (1,037) |
Net Book Value | 14,758 | 16,833 |
Technology and Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,520 | 50,505 |
Accumulated Amortization | (18,838) | (14,474) |
Net Book Value | 31,682 | 36,031 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 102,489 | 102,839 |
Accumulated Amortization | (26,583) | (19,448) |
Net Book Value | 75,906 | 83,391 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,572 | 1,586 |
Accumulated Amortization | (1,456) | (1,437) |
Net Book Value | $ 116 | $ 149 |
Estimated Amortization Expense
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,016 | $ 11,619 |
2,017 | 11,607 |
2,018 | 11,139 |
2,019 | 10,706 |
2,020 | $ 10,593 |
Components of Debt (Detail)
Components of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Line Of Credit Facility [Line Items] | ||
Total debt | $ 175,957 | $ 241,960 |
Current portion of long-term debt | (20,000) | (20,000) |
Long-term debt, less current portion | 155,957 | 221,960 |
Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt | 108,500 | 154,000 |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Total debt | 65,000 | 85,000 |
Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt | $ 2,457 | $ 2,960 |
Components of Debt (Parenthetic
Components of Debt (Parenthetical) (Detail) - London Interbank Offered Rate (LIBOR) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.50% | 1.75% |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.25% | |
Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 0.625% |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jun. 30, 2015JPY (¥) | |
Line Of Credit Facility [Line Items] | ||||
Available credit under lines of credit | $ 116,600,000 | $ 71,000,000 | ||
Total outstanding letters of credit | $ 1,500,000 | $ 1,500,000 | ||
Weighted average interest rate of borrowings | 1.80% | 1.80% | 1.80% | |
Weighted average of total borrowings | $ 210,000,000 | $ 222,600,000 | ||
Credit facility, interest paid | 4,000,000 | 4,200,000 | $ 1,100,000 | |
Credit facility, commitment fees paid | 4,000,000 | 4,200,000 | $ 1,100,000 | |
Singapore Bank | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing capacity | 300,000 | 300,000 | ||
Total outstanding letters of credit | $ 0 | $ 0 | ||
Weighted average interest rate of borrowings | 5.25% | 5.25% | 5.25% | |
Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 225,000,000 | |||
Debt instrument, month and year of maturity | 2018-09 | |||
Term Loans | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | |||
Term loan, quarterly principal Payment | $ 5,000,000 | |||
Term loan, first quarterly principal payment commencement date | Oct. 1, 2013 | |||
Yen denominated line of credit | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 4,100,000 | ¥ 500,000,000 | ||
Debt instrument, month and year of maturity | 2016-06 | |||
Debt instrument, month and year of extend maturity | 2020-08 | |||
London Interbank Offered Rate (LIBOR) | Term Loans | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, rate added on variable rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, rate added on variable rate | 0.625% | |||
Prime Rate | Singapore Bank | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, rate added on variable rate | 1.00% | 1.00% | ||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, rate added on variable rate | 1.75% | |||
Maximum | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, rate added on variable rate | 1.50% | |||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, rate added on variable rate | 0.75% | |||
Minimum | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, rate added on variable rate | 0.625% |
Remaining Annual Amounts of Pri
Remaining Annual Amounts of Principal Payments of Credit Facility (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Line Of Credit Facility [Line Items] | ||
Year 1 | $ 20,000 | |
Year 2 | 20,000 | |
Year 3 | 20,000 | |
Year 4 | 113,500 | |
Thereafter | 2,457 | |
Total debt | 175,957 | $ 241,960 |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Year 1 | 20,000 | |
Year 2 | 20,000 | |
Year 3 | 20,000 | |
Year 4 | 5,000 | |
Total debt | 65,000 | 85,000 |
Yen Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
Thereafter | 2,457 | |
Total debt | 2,457 | 2,960 |
U.S. Dollar Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Year 4 | 108,500 | |
Total debt | $ 108,500 | $ 154,000 |
Components of Income (Loss) fro
Components of Income (Loss) from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. income (loss) | $ (5,326) | $ (2,863) | $ 19,253 | ||||||||
Non-U.S. income | 84,438 | 48,504 | 58,233 | ||||||||
Earnings from Continuing Operations Before Income Taxes | $ 22,533 | $ 15,281 | $ 24,788 | $ 16,510 | $ 14,157 | $ 9,025 | $ 9,524 | $ 12,935 | $ 79,112 | $ 45,641 | $ 77,486 |
Components of Income Tax Expens
Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current, Federal | $ (146) | $ (1,067) | $ 2,759 | ||||||||
Current, State | 86 | 152 | 68 | ||||||||
Current, Foreign | 16,978 | 12,675 | 13,977 | ||||||||
Total Current | 16,918 | 11,760 | 16,804 | ||||||||
Deferred, Federal | (2,762) | (16) | 1,721 | ||||||||
Deferred, State | (251) | 148 | 113 | ||||||||
Deferred, Foreign | (768) | (4,567) | 128 | ||||||||
Total Deferred | (3,781) | (4,435) | 1,962 | ||||||||
Total Income Tax Expense | $ 5,464 | $ 773 | $ 2,692 | $ 4,208 | $ 1,502 | $ 494 | $ 2,086 | $ 3,243 | $ 13,137 | $ 7,325 | $ 18,766 |
Schedule of Principal Items Com
Schedule of Principal Items Comprising Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Income Tax Disclosure [Abstract] | ||
Inventory capitalization | $ 6,614 | $ 5,402 |
Non-deductible accruals | 1,902 | 1,926 |
Accrued employee benefits | 10,297 | 9,226 |
Net-operating loss and credit carryforwards | 22,232 | 21,976 |
Share-based compensation expense | 13,222 | 16,005 |
Other | 1,468 | 577 |
Valuation allowances | (2,713) | (2,212) |
Total deferred income tax assets | 53,022 | 52,900 |
Tax over book accumulated depreciation | (15,937) | (17,625) |
Intangible assets | (25,132) | (25,505) |
Tax on unremitted earnings | (1,753) | (714) |
Other | (2,520) | (2,072) |
Total deferred income tax liabilities | (45,342) | (45,916) |
Net deferred income taxes | $ 7,680 | $ 6,984 |
Schedule of Reconciliation of I
Schedule of Reconciliation of Income Tax Expense at Statutory Federal Rate to Reported Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Taxes at statutory rate, amount | $ 27,689 | $ 15,974 | $ 27,120 | ||||||||
State income taxes-net of federal benefit, amount | (196) | 254 | 168 | ||||||||
Taxes on non U.S. earnings, amount | (11,687) | (6,672) | (6,991) | ||||||||
Research and manufacturing incentive deductions, amount | (2,573) | (2,190) | (1,458) | ||||||||
Other, amount | (96) | (41) | (73) | ||||||||
Total Income Tax Expense | $ 5,464 | $ 773 | $ 2,692 | $ 4,208 | $ 1,502 | $ 494 | $ 2,086 | $ 3,243 | $ 13,137 | $ 7,325 | $ 18,766 |
Taxes at statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes-net of federal benefit, rate | 1.00% | ||||||||||
Taxes on non U.S. earnings, rate | (15.00%) | (15.00%) | (9.00%) | ||||||||
Research and manufacturing incentive deductions, rate | (3.00%) | (5.00%) | (2.00%) | ||||||||
Total Effective Income Tax, rate | 17.00% | 16.00% | 24.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Cash paid for income taxes | $ 13 | $ 17.2 | $ 11.9 |
Effective income tax rate, reductions | 0.22% | 0.12% | 0.07% |
Cumulative foreign undistributed net earnings | $ 419 | ||
Additional deferred tax liability due to undistributed foreign earnings | 83 | ||
Interest and penalties recognized within income tax expense (benefit) | (0.1) | $ 0 | $ 0.1 |
Interest and penalties accrued | 0.1 | 0.2 | $ 0.2 |
Unrecognized tax benefits that would impact effective tax rate | 3.6 | $ 2.8 | |
Unrecognized tax benefits expected decrease during the next twelve months | $ 0.7 | ||
Income tax examination, year(s) under examination | 2,011 |
Schedule of Sources of Differen
Schedule of Sources of Differences Resulting in Deferred Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Depreciation and amortization | $ (1,844) | $ (3,581) | $ (2,825) |
Inventory capitalization | (1,273) | 646 | 84 |
Net operating loss and credit carryforwards net of valuation allowances | 418 | 533 | 4,786 |
Share-based compensation expense | (1,029) | (984) | (3,487) |
Other | (53) | (1,049) | 3,404 |
Nondeductible expense, total | $ (3,781) | $ (4,435) | $ 1,962 |
Schedule of Gross Operating Los
Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Federal research and development credits | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 6,179 |
Federal research and development credits | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | June 2,019 |
Federal research and development credits | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | June 2,035 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 2,396 |
Loss carryforwards | $ 9,146 |
Foreign | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | June 2,024 |
Loss carryforwards, expiration date | June 2,016 |
Foreign | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | June 2,025 |
Loss carryforwards, expiration date | June 2,024 |
State | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 2,918 |
Loss carryforwards | $ 22,554 |
State | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | June 2,016 |
Loss carryforwards, expiration date | June 2,017 |
State | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | June 2,034 |
Loss carryforwards, expiration date | June 2,035 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards | $ 24,766 |
Federal | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards, expiration date | June 2,027 |
Federal | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards, expiration date | June 2,029 |
Schedule of Changes in Liabilit
Schedule of Changes in Liability for Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at Beginning of Year | $ 2,775 | $ 3,181 | $ 2,850 |
Increases in current year tax positions | 2,450 | 298 | 338 |
Increases in prior year tax positions | 203 | 2 | |
Decreases in prior year tax positions | (7) | ||
Expiration of statute of limitations | (1,406) | (706) | |
Balance at End of Year | $ 4,022 | $ 2,775 | $ 3,181 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | |||
Weighted average Shares issuable upon the exercises of stock options excluded from the dilutive share calculation | 576,000 | 507,000 | 470,000 |
Computation of Earnings Per Sha
Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Earnings from continuing operations | $ 65,975 | $ 38,316 | $ 57,602 | ||||||||
Earnings (loss) from discontinued operation | $ 131 | $ 2 | 133 | (6,789) | |||||||
Net Earnings Attributable to II-VI Incorporated | $ 65,975 | $ 38,449 | $ 50,813 | ||||||||
Weighted average shares | 61,219 | 62,248 | 62,411 | ||||||||
Basic earnings (loss) per common share: | |||||||||||
Continuing Operations | $ 0.21 | $ 0.14 | $ 0.12 | $ 0.16 | $ 1.08 | $ 0.62 | $ 0.92 | ||||
Discontinued operation | (0.11) | ||||||||||
Consolidated | $ 0.28 | $ 0.24 | $ 0.36 | $ 0.20 | 0.21 | 0.14 | 0.12 | 0.16 | $ 1.08 | $ 0.62 | $ 0.81 |
Dilutive effect of common stock equivalents | 1,367 | 1,438 | 1,473 | ||||||||
Diluted weighted average common shares | 62,586 | 63,686 | 63,884 | ||||||||
Diluted earnings (loss) per common share: | |||||||||||
Continuing Operations | 0.20 | 0.13 | 0.12 | 0.15 | $ 1.05 | $ 0.60 | $ 0.90 | ||||
Discontinued operation | (0.11) | ||||||||||
Consolidated | $ 0.27 | $ 0.23 | $ 0.35 | $ 0.20 | $ 0.20 | $ 0.13 | $ 0.12 | $ 0.15 | $ 1.05 | $ 0.60 | $ 0.80 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Leases [Abstract] | |||
Operating leases expiration date | Jul. 31, 2061 | ||
Rent expense | $ 15 | $ 13.6 | $ 9.8 |
Operating Lease Future Rental C
Operating Lease Future Rental Commitments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 12,875 |
2,017 | 9,500 |
2,018 | 6,275 |
2,019 | 3,449 |
2,020 | 3,065 |
Thereafter | $ 16,649 |
Share-Based Compensation Plan73
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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% | ||
Share based compensation expense | $ 12,989 | $ 12,997 | $ 12,657 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, outstanding | 14,300 | 5,200 | 9,700 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, exercised | 14,300 | 5,200 | 9,700 |
Total intrinsic value of stock options and cash-based stock appreciation rights, exercised | $ 2,900 | 3,100 | 2,900 |
Unrecognized compensation cost, weighted-average period of recognition, years | 3 years | ||
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance share grant, period | 24 months | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance share grant, period | 48 months | ||
Stock Options and Cash-Based Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 5,158 | $ 5,818 | $ 5,046 |
Weighted-average fair values of stock options granted under the stock option Plan | $ 5.76 | $ 8.21 | $ 8.37 |
Share based compensation, estimated forfeiture percentage | 17.00% | ||
Share based compensation expense attributable to non-vested shares | $ 7,700 | ||
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 | $ 5,182 | $ 4,868 | $ 4,411 |
Share based compensation, estimated forfeiture percentage | 10.30% | ||
Share based compensation, vesting period years | 3 years | ||
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense attributable to non-vested shares | $ 5,800 | ||
Unrecognized compensation cost, weighted-average period of recognition, years | 2 years | ||
Total fair value of restricted stock grant | $ 5,900 | 4,500 | 7,000 |
Total fair value of restricted stock vested | 5,100 | 3,800 | 700 |
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense attributable to non-vested shares | $ 2,600 | ||
Unrecognized compensation cost, weighted-average period of recognition, years | 1 year | ||
Total fair value of restricted stock grant | $ 2,300 | 2,100 | 5,900 |
Total fair value of restricted stock vested | 1,600 | 1,300 | 2,600 |
Liability Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 1,600 | $ 700 | $ 700 |
Omnibus Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock authorized for issuance under the Plan | 4,900,000 | ||
Shares available to be issued under the Plan | 3,502,571 |
Share-Based Compensation Expens
Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 12,989 | $ 12,997 | $ 12,657 |
Stock Options and Cash-Based Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | 5,158 | 5,818 | 5,046 |
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 | 5,182 | 4,868 | 4,411 |
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 | $ 2,649 | $ 2,311 | $ 3,200 |
Fair Value Assumptions for Stoc
Fair Value Assumptions for Stock Option and Stock Appreciation Rights (Detail) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 1.71% | 1.71% | 0.98% |
Expected volatility | 41.00% | 47.00% | 49.00% |
Expected life of options | 5 years 11 months 9 days | 5 years 6 months 22 days | 5 years 7 months 28 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Option and Cash-Based Sto
Stock Option and Cash-Based Stock Appreciation Rights Activity (Detail) - Jun. 30, 2015 - $ / shares | Total |
Number of Shares | |
Outstanding - July 1, 2014 | 4,704,554 |
Granted | 648,540 |
Exercised | (498,250) |
Forfeited and Expired | (290,020) |
Outstanding - June 30, 2015 | 4,564,824 |
Exercisable - June 30, 2015 | 2,899,994 |
Weighted Average Exercise Price | |
Outstanding - July 1, 2014 | $ 16.37 |
Granted | 14.03 |
Exercised | 10.41 |
Forfeited and Expired | 18.72 |
Outstanding - June 30, 2015 | 16.54 |
Exercisable - June 30, 2015 | $ 16.42 |
Cash-Based Stock Appreciation Rights | |
Number of Shares | |
Outstanding - July 1, 2014 | 108,718 |
Granted | 63,550 |
Exercised | (136) |
Forfeited and Expired | (4,960) |
Outstanding - June 30, 2015 | 167,172 |
Exercisable - June 30, 2015 | 31,672 |
Weighted Average Exercise Price | |
Outstanding - July 1, 2014 | $ 18.28 |
Granted | 14.19 |
Exercised | 14.03 |
Forfeited and Expired | 16.28 |
Outstanding - June 30, 2015 | 16.80 |
Exercisable - June 30, 2015 | $ 18.50 |
Share-Based Compensation Outsta
Share-Based Compensation Outstanding and Exercisable Options (Detail) - Jun. 30, 2015 - $ / shares | Total |
Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 4,731,996 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 5 years 6 months 4 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 16.55 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 2,931,666 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 4 years 26 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 16.44 |
$8.80 - $13.23 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 8.80 |
Range of Exercise Prices, Upper range | $ 13.23 |
$8.80 - $13.23 | Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 933,284 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 2 years 11 months 19 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 11.27 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 932,670 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 2 years 11 months 19 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 11.27 |
$13.34 - $20.26 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 13.34 |
Range of Exercise Prices, Upper range | $ 20.26 |
$13.34 - $20.26 | Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 3,211,940 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 6 years 9 months 15 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 16.81 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 1,434,334 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 5 years 2 months 1 day |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 17.03 |
$20.47 - $27.18 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 20.47 |
Range of Exercise Prices, Upper range | $ 27.18 |
$20.47 - $27.18 | Stock Options and Cash-Based Stock Appreciation Rights | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Number of Shares | 586,772 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 3 years 4 months 17 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 23.51 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | 564,662 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 3 years 3 months 7 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 23.49 |
Restricted Share and Cash-Based
Restricted Share and Cash-Based Restricted Share Unit Activity (Detail) - 12 months ended Jun. 30, 2015 - $ / shares | Total |
Restricted Stock | |
Number of Shares | |
Nonvested - June 30, 2014 | 784,035 |
Granted | 323,365 |
Vested | (273,125) |
Forfeited | (43,265) |
Nonvested - June 30, 2015 | 791,010 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2014 | $ 17.66 |
Granted | 16.28 |
Vested | 18.09 |
Forfeited | 17.69 |
Nonvested - June 30, 2015 | $ 16.94 |
Cash-Based Restricted Share Units | |
Number of Shares | |
Nonvested - June 30, 2014 | 64,310 |
Granted | 41,585 |
Vested | (415) |
Forfeited | (6,485) |
Nonvested - June 30, 2015 | 98,995 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2014 | $ 17.72 |
Granted | 14.74 |
Vested | 18.93 |
Forfeited | 16.13 |
Nonvested - June 30, 2015 | $ 16.57 |
Performance Share Award Activit
Performance Share Award Activity (Detail) - 12 months ended Jun. 30, 2015 - $ / shares | Total |
Performance Share Awards | |
Number of Shares | |
Nonvested - June 30, 2014 | 332,180 |
Granted | 152,226 |
Vested | (73,631) |
Forfeited | (103,330) |
Nonvested - June 30, 2015 | 307,445 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2014 | $ 18.46 |
Granted | 13.99 |
Vested | 18.93 |
Forfeited | 18.88 |
Nonvested - June 30, 2015 | $ 15.99 |
Cash-Based Performance Share Units | |
Number of Shares | |
Nonvested - June 30, 2014 | 99,144 |
Granted | 8,709 |
Vested | (1,663) |
Forfeited | (4,756) |
Nonvested - June 30, 2015 | 101,434 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2014 | $ 18.94 |
Granted | 13.99 |
Vested | 18.93 |
Forfeited | 18.93 |
Nonvested - June 30, 2015 | $ 18.52 |
Segment and Geographic Report80
Segment and Geographic Reporting - Additional Information (Detail) - Segment | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting [Abstract] | ||
Number of reporting segments | 3 | 5 |
Financial Information of Compan
Financial Information of Company's Operation by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | $ 196,683 | $ 182,709 | $ 176,736 | $ 185,833 | $ 187,921 | $ 173,555 | $ 171,765 | $ 150,020 | $ 741,961 | $ 683,261 | $ 551,075 |
Operating income (loss) | 76,799 | 46,486 | 71,491 | ||||||||
Interest expense | (777) | (844) | (1,038) | (1,204) | (1,415) | (1,412) | (1,169) | (483) | (3,863) | (4,479) | (1,160) |
Other income, net | 97 | (1,534) | 9,295 | (1,682) | 868 | 1,694 | 1,125 | (53) | 6,176 | 3,634 | 7,155 |
Income taxes | (5,464) | (773) | (2,692) | (4,208) | (1,502) | (494) | (2,086) | (3,243) | (13,137) | (7,325) | (18,766) |
Earnings (loss) from discontinued operation | 131 | 2 | 133 | (6,789) | |||||||
Net earnings | 17,069 | $ 14,508 | $ 22,096 | $ 12,302 | 12,655 | $ 8,531 | $ 7,569 | $ 9,694 | 65,975 | 38,449 | 51,931 |
Depreciation and amortization | 53,083 | 53,098 | 40,792 | ||||||||
Expenditures for property, plant and equipment | 52,313 | 29,220 | 25,205 | ||||||||
Segment assets | 1,058,164 | 1,071,926 | 1,058,164 | 1,071,926 | |||||||
Equity investment | 11,914 | 11,589 | 11,914 | 11,589 | |||||||
Goodwill | 195,894 | 196,145 | 195,894 | 196,145 | 123,352 | ||||||
Eliminations | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Inter-segment revenues | (43,556) | (31,358) | (19,079) | ||||||||
II-VI Laser Solutions | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Goodwill | 43,578 | 44,041 | 43,578 | 44,041 | 13,233 | ||||||
II-VI Laser Solutions | Operating Segments | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 287,881 | 254,342 | 217,604 | ||||||||
Inter-segment revenues | 21,021 | 9,825 | 5,671 | ||||||||
Operating income (loss) | 55,039 | 24,457 | 53,963 | ||||||||
Depreciation and amortization | 14,127 | 15,018 | 8,554 | ||||||||
Expenditures for property, plant and equipment | 27,349 | 11,797 | 6,536 | ||||||||
Segment assets | 330,308 | 312,281 | 330,308 | 312,281 | |||||||
Goodwill | 43,578 | 44,041 | 43,578 | 44,041 | |||||||
II-VI Photonics | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Goodwill | 99,426 | 99,214 | 99,426 | 99,214 | 56,713 | ||||||
II-VI Photonics | Operating Segments | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 260,825 | 216,493 | 141,319 | ||||||||
Inter-segment revenues | 13,210 | 9,533 | 3,950 | ||||||||
Operating income (loss) | 7,208 | (113) | 15,037 | ||||||||
Depreciation and amortization | 21,073 | 20,123 | 17,181 | ||||||||
Expenditures for property, plant and equipment | 11,324 | 8,359 | 8,849 | ||||||||
Segment assets | 450,763 | 468,055 | 450,763 | 468,055 | |||||||
Goodwill | 99,426 | 99,214 | 99,426 | 99,214 | |||||||
II- VI Performance Products | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Goodwill | 52,890 | 52,890 | 52,890 | 52,890 | 53,406 | ||||||
II- VI Performance Products | Operating Segments | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 193,255 | 212,426 | 192,152 | ||||||||
Inter-segment revenues | 9,325 | 12,000 | 9,458 | ||||||||
Operating income (loss) | 14,552 | 22,142 | 2,491 | ||||||||
Depreciation and amortization | 17,883 | 17,957 | 15,057 | ||||||||
Expenditures for property, plant and equipment | 13,640 | 9,064 | $ 9,820 | ||||||||
Segment assets | 277,093 | 291,590 | 277,093 | 291,590 | |||||||
Equity investment | 11,914 | 11,589 | 11,914 | 11,589 | |||||||
Goodwill | $ 52,890 | $ 52,890 | $ 52,890 | $ 52,890 |
Geographical Information of Rev
Geographical Information of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 196,683 | $ 182,709 | $ 176,736 | $ 185,833 | $ 187,921 | $ 173,555 | $ 171,765 | $ 150,020 | $ 741,961 | $ 683,261 | $ 551,075 |
UNITED STATES | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 241,974 | 263,493 | 251,735 | ||||||||
CHINA | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 140,586 | 114,247 | 123,306 | ||||||||
HONG KONG | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 109,428 | 54,602 | |||||||||
GERMANY | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 77,524 | 69,983 | 59,628 | ||||||||
SWITZERLAND | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 56,940 | 70,260 | 10,268 | ||||||||
JAPAN | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 52,864 | 38,110 | 29,462 | ||||||||
VIET NAM | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 24,307 | 23,141 | 29,425 | ||||||||
PHILIPPINES | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 11,334 | 14,959 | 17,400 | ||||||||
ITALY | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 9,313 | 8,897 | 7,593 | ||||||||
UNITED KINGDOM | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 7,749 | 7,148 | 6,865 | ||||||||
BELGIUM | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 5,731 | 6,578 | 5,821 | ||||||||
SINGAPORE | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 3,897 | 8,273 | 6,280 | ||||||||
AUSTRALIA | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 314 | 3,570 | 3,292 | ||||||||
Total Non-United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 499,987 | $ 419,768 | $ 299,340 |
Geographical Information of Lon
Geographical Information of Long Lived Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | $ 208,885 | $ 216,099 | $ 176,120 |
UNITED STATES | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 102,171 | 109,138 | 110,337 |
CHINA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 46,794 | 45,667 | 43,139 |
SWITZERLAND | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 26,384 | 22,524 | 5 |
GERMANY | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 15,790 | 16,129 | 2,107 |
VIET NAM | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 7,985 | 9,107 | 10,081 |
PHILIPPINES | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 6,003 | 6,205 | 7,207 |
HONG KONG | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 2,476 | 5,111 | |
Other Country | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 1,282 | 2,218 | 3,244 |
Total Non-United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | $ 106,714 | $ 106,961 | $ 65,783 |
Summary by Level of Fair Value
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Assets: | ||
Foreign currency forward contracts | $ 130 | |
Liabilities: | ||
Foreign currency forward contracts | $ 54 | |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Foreign currency forward contracts | $ 130 | |
Liabilities: | ||
Foreign currency forward contracts | $ 54 |
Fair Value of Financial Instr85
Fair Value of Financial Instruments - Additional Information (Detail) | Jun. 30, 2015USD ($) |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Significant unobservable inputs of assets (liabilities) | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2015JPY (¥) | Jun. 30, 2014USD ($) | |
Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | Jul. 31, 2015 | ||
Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | Oct. 31, 2015 | ||
Foreign Currency Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | $ | $ 10,800,000 | $ 7,400,000 | |
Foreign Currency Forward Exchange Contracts | Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 250,000,000 | ||
Foreign Currency Forward Exchange Contracts | Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 350,000,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to profit sharing retirement plan | $ 2,800 | $ 2,500 | $ 2,200 |
Common stock discount percentage from the prevailing market price | 5.00% | ||
Percentage of maximum employee subscription rate on base pay | 10.00% | ||
Contributions to the Compensation Plan by the employer | $ 1,914 | 2,253 | |
Contributions to the Compensation Plan by the employer in fiscal year 2016 | 2,000 | ||
Pension liability | $ 600 | 600 | |
Percentage of discretionary incentive compensation | 100.00% | ||
Contributions to the Compensation Plan by the employees | $ 700 | 1,900 | 1,800 |
II-VI Performance Metals Defined Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to the Compensation Plan by the employer | $ 0 | $ 0 | $ 0 |
Employee Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Common stock authorized for issuance under the Plan | 1,600,000 | ||
Common stock available for purchase under the plan | 514,031 | 543,234 |
Schedule of Changes in Projecte
Schedule of Changes in Projected Benefit Obligations and Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Change in projected benefit obligation: | ||
Projected benefit obligation, beginning of period | $ 39,390 | $ 38,748 |
Service cost | 2,791 | 3,375 |
Interest cost | 744 | 812 |
Plan amendments | (1,661) | |
Participant contributions | 965 | 1,110 |
Benefits (paid) received | (1,279) | (3,959) |
Actuarial (gain) loss on obligation | 1,520 | (867) |
Currency translation adjustment | (1,556) | 1,832 |
Projected benefit obligation, end of period | 42,575 | 39,390 |
Change in plan assets: | ||
Plan assets at fair value, beginning of period | 31,965 | 30,167 |
Actual return on plan assets | 207 | 776 |
Employer contributions | 1,914 | 2,253 |
Participant contributions | 965 | 1,110 |
Benefits (paid) received | (1,279) | (3,959) |
Currency translation adjustment | (1,263) | 1,617 |
Plan assets at fair value, end of period | 32,509 | 31,965 |
Other non-current assets: | ||
Deferred tax asset | 2,129 | 1,570 |
Other non-current liabilities: | ||
Underfunded pension liability | 10,066 | 7,425 |
Amounts recognized in accumulated other comprehensive income, net of tax: | ||
Pension adjustment, net of taxes of ($602) for the year ended June 30, 2015 and $387 for the year ended June 30, 2014, respectively | (2,244) | 1,443 |
Accumulated benefit obligation, end of period | $ 38,734 | $ 35,581 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 2,791 | $ 3,375 |
Interest cost | 744 | 812 |
Expected return on plan assets | (1,106) | (1,338) |
Net period pension cost | $ 2,429 | $ 2,849 |
Schedule of Projected and Accum
Schedule of Projected and Accumulated Benefit Obligations Rates (Detail) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Discount rate | 1.10% | 2.00% |
Salary increase rate | 2.00% | 2.00% |
Expected return on plan assets | 3.50% | 3.50% |
Expected average remaining working life (in years) | 13 years 1 month 6 days | 13 years 1 month 6 days |
Schedule of Swiss Plan's Asset
Schedule of Swiss Plan's Asset Allocation (Detail) | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Fixed Income Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 22.00% | 22.00% |
Equity Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 52.00% | 54.00% |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 16.00% | 14.00% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 8.00% | 8.00% |
Alternative Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 2.00% | 2.00% |
Schedule of Estimated Future Be
Schedule of Estimated Future Benefit Payments Under Swiss Plan (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2,016 | $ 1,649 |
2,017 | 2,129 |
2,018 | 1,250 |
2,019 | 3,429 |
2,020 | 1,164 |
Next five years | $ 14,259 |
Components of Other Accrued Lia
Components of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 24,576 | $ 31,521 |
Deferred revenue | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 8,767 | 4,318 |
Warranty reserve | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 3,251 | 2,859 |
Acquisition holdbacks | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 10,000 | |
Other accrued liabilities | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 12,558 | $ 14,344 |
Other Accrued Liabilities - Add
Other Accrued Liabilities - Additional Information (Detail) - Redeemable noncontrolling interest liability - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule Of Accrued Liabilities [Line Items] | ||
Minority interest, ownership percentage | 25.07% | |
Minority interest, value | $ 7.6 | |
Dividends declared and paid to the noncontrolling interest holder | $ 1 |
Changes in the Carrying Amount
Changes in the Carrying Amount of Redeemable Noncontrolling Interest (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2013USD ($) | |
Other Liabilities Disclosure [Abstract] | |
Balance at Beginning of Year | $ 5,160 |
Net earnings attributable to redeemable noncontrolling interest | 1,118 |
Other changes | (585) |
Redemption value adjustment to redeemable noncontrolling interest | 2,875 |
Reclassification of redeemable noncontrolling interest to Other accrued liabilities | $ (8,568) |
Change in Carrying Value of Com
Change in Carrying Value of Company's Warranty Reserve (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Other Liabilities Disclosure [Abstract] | |
Balance-Beginning of Year | $ 2,859 |
Settlements during the period | (4,655) |
Additional warranty liability recorded | 5,047 |
Balance-End of Year | $ 3,251 |
Schedule of Future Commitments
Schedule of Future Commitments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 13,062 |
2,017 | 2,537 |
2,018 | $ 2,537 |
Share Repurchase Program (Detai
Share Repurchase Program (Detail) - USD ($) | 12 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Aug. 31, 2014 | Feb. 28, 2014 | May. 31, 2012 | |
Equity [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 50,000,000 | $ 20,000,000 | $ 25,000,000 | ||||
Purchase of common stock, shares | 936,049 | 1,333,355 | 1,141,022 | 301,716 | |||
Purchase of Treasury Stock | $ 12,729,000 | $ 19,973,000 | $ 19,978,000 | $ 5,000,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
AOCI, net of tax Beginning balance | $ 19,406 | $ 15,600 | $ 10,238 |
Other comprehensive income before reclassifications | (10,741) | 3,806 | 5,362 |
Net current-period other comprehensive income | (10,741) | 3,806 | 5,362 |
AOCI, net of tax Ending balance | 8,665 | 19,406 | 15,600 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
AOCI, net of tax Beginning balance | 17,963 | 15,600 | 10,238 |
Other comprehensive income before reclassifications | (8,497) | 2,363 | 5,362 |
Net current-period other comprehensive income | (8,497) | 2,363 | 5,362 |
AOCI, net of tax Ending balance | 9,466 | 17,963 | $ 15,600 |
Defined Benefit Pension Plan | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
AOCI, net of tax Beginning balance | 1,443 | ||
Other comprehensive income before reclassifications | (2,244) | 1,443 | |
Net current-period other comprehensive income | (2,244) | 1,443 | |
AOCI, net of tax Ending balance | $ (801) | $ 1,443 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 196,683 | $ 182,709 | $ 176,736 | $ 185,833 | $ 187,921 | $ 173,555 | $ 171,765 | $ 150,020 | $ 741,961 | $ 683,261 | $ 551,075 |
Cost of goods sold | 121,687 | 116,984 | 113,718 | 117,974 | 125,600 | 118,865 | 118,371 | 93,709 | 470,363 | 456,545 | 347,558 |
Internal research and development | 12,598 | 12,874 | 12,845 | 12,943 | 11,322 | 12,099 | 11,355 | 7,747 | 51,260 | 42,523 | 22,689 |
Selling, general and administrative | 39,185 | 35,192 | 33,642 | 35,520 | 36,295 | 33,848 | 32,471 | 35,093 | 143,539 | 137,707 | 109,337 |
Interest expense | 777 | 844 | 1,038 | 1,204 | 1,415 | 1,412 | 1,169 | 483 | 3,863 | 4,479 | 1,160 |
Other expense (income), net | (97) | 1,534 | (9,295) | 1,682 | (868) | (1,694) | (1,125) | 53 | (6,176) | (3,634) | (7,155) |
Earnings from Continuing Operations Before Income Taxes | 22,533 | 15,281 | 24,788 | 16,510 | 14,157 | 9,025 | 9,524 | 12,935 | 79,112 | 45,641 | 77,486 |
Income taxes | 5,464 | 773 | 2,692 | 4,208 | 1,502 | 494 | 2,086 | 3,243 | 13,137 | 7,325 | 18,766 |
Earnings from Continuing Operations | 12,655 | 8,531 | 7,438 | 9,692 | 65,975 | 38,316 | 58,720 | ||||
Earnings (loss) from discontinued operation | 131 | 2 | 133 | (6,789) | |||||||
Net Earnings | $ 17,069 | $ 14,508 | $ 22,096 | $ 12,302 | $ 12,655 | $ 8,531 | $ 7,569 | $ 9,694 | $ 65,975 | $ 38,449 | $ 51,931 |
Basic earnings (loss) per common share: | |||||||||||
Continuing operations | $ 0.21 | $ 0.14 | $ 0.12 | $ 0.16 | $ 1.08 | $ 0.62 | $ 0.92 | ||||
Discontinued operation | (0.11) | ||||||||||
Consolidated | $ 0.28 | $ 0.24 | $ 0.36 | $ 0.20 | 0.21 | 0.14 | 0.12 | 0.16 | 1.08 | 0.62 | 0.81 |
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations | 0.20 | 0.13 | 0.12 | 0.15 | 1.05 | 0.60 | 0.90 | ||||
Discontinued operation | (0.11) | ||||||||||
Consolidated | $ 0.27 | $ 0.23 | $ 0.35 | $ 0.20 | $ 0.20 | $ 0.13 | $ 0.12 | $ 0.15 | $ 1.05 | $ 0.60 | $ 0.80 |
Valuation and Qualifying Acc101
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Allowance for doubtful accounts | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 1,852 | $ 1,479 | $ 1,536 | |
Additions Charged to Expense | (482) | 993 | (92) | |
Additions Charged to Other Accounts | [1] | 179 | ||
Deduction from Reserves | [2] | (322) | (620) | (144) |
Balance at End of Year | 1,048 | 1,852 | 1,479 | |
Warranty reserve | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 2,859 | 1,661 | 1,247 | |
Additions Charged to Expense | 5,047 | 1,868 | 1,851 | |
Additions Charged to Other Accounts | [3] | 1,173 | ||
Deduction from Reserves | (4,655) | (1,843) | (1,437) | |
Balance at End of Year | $ 3,251 | $ 2,859 | $ 1,661 | |
[1] | Primarily relates to allowance for doubtful accounts from the acquisitions. | |||
[2] | Primarily relates to write-offs of accounts receivable. | |||
[3] | Relates to the warranty reserve acquired from the acquisitions. |