Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 12, 2019 | Dec. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IIVI | ||
Entity Registrant Name | II-VI INC | ||
Entity Central Index Key | 0000820318 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 63,610,824 | ||
Entity Public Float | $ 2,023,369,000 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 0-16195 | ||
Entity Tax Identification Number | 251214948 | ||
Entity Address, Address Line One | 375 Saxonburg Boulevard | ||
Entity Address, City or Town | Saxonburg | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 16056 | ||
City Area Code | 724 | ||
Local Phone Number | 352-4455 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 204,872 | $ 247,038 |
Accounts receivable - less allowance for doubtful accounts of $1,292 at June 30, 2019 and $837 at June 30, 2018 | 269,642 | 215,032 |
Inventories | 296,282 | 248,268 |
Prepaid and refundable income taxes | 11,778 | 7,845 |
Prepaid and other current assets | 30,337 | 43,654 |
Total Current Assets | 812,911 | 761,837 |
Property, plant & equipment, net | 582,790 | 524,890 |
Goodwill | 319,778 | 270,678 |
Other intangible assets, net | 139,324 | 125,069 |
Investments | 76,208 | 69,215 |
Deferred income taxes | 8,524 | 2,046 |
Other assets | 14,238 | 7,926 |
Total Assets | 1,953,773 | 1,761,661 |
Current Liabilities | ||
Current portion of long-term debt | 23,834 | 20,000 |
Accounts payable | 104,462 | 89,774 |
Accrued compensation and benefits | 71,847 | 66,322 |
Accrued income taxes payable | 20,476 | 17,392 |
Other accrued liabilities | 49,944 | 42,979 |
Total Current Liabilities | 270,563 | 236,467 |
Long-term debt | 443,163 | 419,013 |
Deferred income taxes | 23,913 | 27,241 |
Other liabilities | 82,925 | 54,629 |
Total Liabilities | 820,564 | 737,350 |
Shareholders' Equity | ||
Preferred stock, no par value; authorized - 5,000,000 shares; none issued | ||
Common stock, no par value; authorized - 300,000,000 shares; issued - 76,315,337 shares at June 30, 2019; 75,692,683 shares at June 30, 2018 | 382,423 | 351,761 |
Accumulated other comprehensive income (loss) | (24,221) | (3,780) |
Retained earnings | 943,581 | 836,064 |
Shareholders' equity excluding treasury stock | 1,301,783 | 1,184,045 |
Treasury stock, at cost - 12,603,781 shares at June 30, 2019 and 12,395,791 shares at June 30, 2018 | (168,574) | (159,734) |
Total Shareholders' Equity | 1,133,209 | 1,024,311 |
Total Liabilities and Shareholders' Equity | $ 1,953,773 | $ 1,761,661 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,292 | $ 837 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 76,315,337 | 75,692,683 |
Treasury stock, shares | 12,603,781 | 12,395,791 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 1,362,496 | $ 1,158,794 | $ 972,046 |
Costs, Expenses and Other Expense (Income) | |||
Cost of goods sold | 841,147 | 696,591 | 583,684 |
Internal research and development | 139,163 | 116,875 | 96,806 |
Selling, general and administrative | 233,518 | 208,565 | 176,000 |
Interest expense | 22,417 | 18,352 | 6,809 |
Other expense (income), net | (2,562) | (3,783) | (10,041) |
Total Costs, Expenses and Other Expense (Income) | 1,233,683 | 1,036,600 | 853,258 |
Earnings Before Income Taxes | 128,813 | 122,194 | 118,788 |
Income Taxes | 21,296 | 34,192 | 23,514 |
Net Earnings | $ 107,517 | $ 88,002 | $ 95,274 |
Basic Earnings Per Share | $ 1.69 | $ 1.41 | $ 1.52 |
Diluted Earnings Per Share | $ 1.63 | $ 1.35 | $ 1.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 107,517 | $ 88,002 | $ 95,274 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (14,319) | 7,152 | (2,275) |
Pension adjustment, net of taxes of $(1,642), $763, and $674 for the years ended June 30, 2019, 2018, and 2017, respectively | (6,122) | 2,846 | 2,514 |
Other comprehensive income (loss) | (20,441) | 9,998 | 239 |
Comprehensive income | $ 87,076 | $ 98,000 | $ 95,513 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Pension adjustment tax | $ (1,642) | $ 763 | $ 674 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Beginning Balance at Jun. 30, 2016 | $ 782,338 | $ 243,812 | $ (14,017) | $ 652,788 | $ (100,245) |
Beginning Balance, shares at Jun. 30, 2016 | 72,840,000 | (10,966,000) | |||
Share-based and deferred compensation activities | 22,712 | $ 25,826 | $ (3,114) | ||
Share-based and deferred compensation activities (in shares) | 1,241,000 | 26,000 | |||
Net earnings | 95,274 | 95,274 | |||
Foreign currency translation adjustments | (2,275) | (2,275) | |||
Pension adjustment, net of taxes | 2,514 | 2,514 | |||
Ending Balance at Jun. 30, 2017 | 900,563 | $ 269,638 | (13,778) | 748,062 | $ (103,359) |
Ending Balance, shares at Jun. 30, 2017 | 74,081,000 | (10,940,000) | |||
Share-based and deferred compensation activities | 19,217 | $ 25,717 | $ (6,500) | ||
Share-based and deferred compensation activities (in shares) | 1,612,000 | (41,000) | |||
Net earnings | 88,002 | 88,002 | |||
Purchases of treasury stock | (49,875) | $ (49,875) | |||
Purchases of treasury stock, shares | (1,415,000) | ||||
Foreign currency translation adjustments | 7,152 | 7,152 | |||
Equity portion of convertible debt, net of issuance costs of $1,694 | 56,406 | $ 56,406 | |||
Pension adjustment, net of taxes | 2,846 | 2,846 | |||
Ending Balance at Jun. 30, 2018 | 1,024,311 | $ 351,761 | (3,780) | 836,064 | $ (159,734) |
Ending Balance, shares at Jun. 30, 2018 | 75,693,000 | (12,396,000) | |||
Share-based and deferred compensation activities | 23,438 | $ 30,662 | $ (7,224) | ||
Share-based and deferred compensation activities (in shares) | 622,000 | (158,000) | |||
Net earnings | 107,517 | 107,517 | |||
Purchases of treasury stock | $ (1,616) | $ (1,616) | |||
Purchases of treasury stock, shares | (1,366,587) | (50,000) | |||
Foreign currency translation adjustments | $ (14,319) | (14,319) | |||
Pension adjustment, net of taxes | (6,122) | (6,122) | |||
Ending Balance at Jun. 30, 2019 | $ 1,133,209 | $ 382,423 | $ (24,221) | $ 943,581 | $ (168,574) |
Ending Balance, shares at Jun. 30, 2019 | 76,315,000 | (12,604,000) |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Pension adjustment tax | $ (1,642) | $ 763 | $ 674 |
Debt issuance costs | $ 1,694 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 107,517 | $ 88,002 | $ 95,274 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 75,745 | 66,202 | 50,894 |
Amortization | 16,620 | 14,568 | 12,743 |
Share-based compensation expense | 21,946 | 15,312 | 11,756 |
Amortization of discount on convertible debt and debt issuance costs | 12,550 | 10,057 | |
Losses (gains) on foreign currency remeasurements and transactions | 3,155 | 850 | (1,275) |
Earnings from equity investments | (3,214) | (3,594) | (744) |
Deferred income taxes | (10,462) | 945 | (1,184) |
Increase (decrease) in cash from changes in (net of effects of acquisitions): | |||
Accounts receivable | (50,764) | (21,044) | (26,247) |
Inventories | (36,392) | (38,732) | (24,992) |
Accounts payable | 15,999 | 17,436 | 6,704 |
Contract liabilities | 15,889 | 1,168 | 2,345 |
Income taxes | 366 | 7,380 | 735 |
Other operating net assets | 9,520 | 2,464 | (7,393) |
Net cash provided by operating activities | 178,475 | 161,014 | 118,616 |
Cash Flows from Investing Activities | |||
Additions to property, plant & equipment | (137,122) | (153,438) | (138,517) |
Purchases of businesses, net of cash acquired | (83,067) | (80,503) | (40,015) |
Purchases of equity investments | (4,480) | (52,056) | |
Other investing activities | 693 | 1,047 | 1,291 |
Net cash used in investing activities | (223,976) | (284,950) | (177,241) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of 0.25% convertible senior notes due 2022 | 345,000 | ||
Proceeds from borrowings under Credit Facility | 150,000 | 100,000 | 129,000 |
Proceeds from exercises of stock options | 8,698 | 10,469 | 15,092 |
Payments on borrowings under Credit Facility | (135,000) | (292,000) | (25,000) |
Payments in satisfaction of employees' minimum tax obligations | (7,092) | (6,564) | (4,136) |
Debt issuance costs | (5,589) | (10,061) | (1,384) |
Payments on earnout considerations | (4,524) | (2,000) | |
Purchases of treasury stock | (1,616) | (49,875) | |
Net cash provided by financing activities | 4,877 | 96,969 | 111,572 |
Effect of exchange rate changes on cash and cash equivalents | (1,542) | 2,117 | 496 |
Net (decrease) increase in cash and cash equivalents | (42,166) | (24,850) | 53,443 |
Cash and Cash Equivalents at Beginning of Period | 247,038 | 271,888 | 218,445 |
Cash and Cash Equivalents at End of Period | 204,872 | 247,038 | 271,888 |
Non cash transactions: | |||
Purchases of business - earnout consideration recorded in other accrued liabilities | 4,397 | 2,250 | |
Capital lease obligation incurred on facility lease | 25,000 | ||
Additions to property, plant & equipment included in accounts payable and accrued liabilities | $ 10,986 | $ 12,313 | $ 4,428 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - 0.25% Convertible Senior Note Due 2022 | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Debt instrument, interest rate | 0.25% | 0.25% |
Debt instrument maturity date | Sep. 1, 2022 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
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 optoelectronic components and devices, is a vertically-integrated manufacturing company that develops, manufactures and markets engineered materials and optoelectronic components and devices for precision use in industrial materials processing, optical communications, aerospace and defense, consumer electronics, semiconductor capital equipment, life sciences and automotive applications. The Company markets its products through its direct sales force and through distributors and agents. The Company uses certain uncommon materials and compounds to manufacture its products. Some of these materials are available from only one proven outside source. The continued high quality of these materials is critical to the stability of the Company’s manufacturing yields. The Company has not experienced significant production delays due to a shortage of materials. However, the Company does occasionally experience problems associated with vendor-supplied materials not meeting specifications for quality or purity. A significant failure of the Company’s suppliers to deliver sufficient quantities of necessary high-quality materials on a timely basis could have a material adverse effect on the Company’s results of operations. Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. 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 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, the United Kingdom, South Korea and Taiwan. 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. Inventories. Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers, if applicable, other factors, including known trends, market conditions, currency exchange rates and other such issues. The Company generally records a reduction to the carrying value of inventory as a charge against earnings for all products on hand more than 12 to 24 months, depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional charge may be recorded for product on hand that is in excess of product sold to customers over the same periods noted above. The cumulative adjustments to the carrying value of inventory totaled $23.5 million and $22.5 million at June 30, 2019 and 2018, respectively. Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair 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 three 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 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/or a market analysis to determine the fair value of its reporting units. A number of 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. Goodwill impairment is now measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill prior to completing the quantitative assessment 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 quantitative assessment. Otherwise, the Company will forego the quantitative assessment and does not need to perform any further testing. As of April 1 of fiscal years 2019 and 2018, the Company completed its annual impairment tests of its reporting units using the quantitative assessment. Based on the results of these analyses the Company’s goodwill was not impaired. Intangibles. Intangible assets are initially recorded at their cost or fair 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 five to 20 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1 st Investments in Other Entities. In the normal course of business, the Company enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by the Company in business entities, including general or limited partnerships, contractual ventures, or other forms of equity participation. The Company determines whether such investments involve a variable interest entity (“VIE”) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if the Company is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When the Company is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a noncontrolling interest. The Company generally accounts for investments it makes in VIEs in which it has determined that it does not have a controlling financial interest but has significant influence over and holds at least a 20% ownership interest using the equity method. Any such investment not meeting the parameters to be accounted under the equity method would be accounted for under ASU 2016-01. If an entity fails to meet the characteristics of a VIE, management then evaluates such entity under the voting model. Under the voting model, management consolidates the entity if they determine that the Company, directly or indirectly, has greater than 50% of the voting shares and determines that other equity holders do not have substantive participating rights. 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. Our customers may discover defects in our products after the products have been fully deployed and operated under peak stress conditions. If we are unable to correct defects or other problems, we could experience, among other things, loss of customers, increased costs of product returns and warranty expenses, damage to our brand reputation, failure to attract new customers or achieve market acceptance, diversion of development and engineering resources, or legal action by our customers. The Company had no material loss contingency liabilities at June 30, 2019 related to commitments and contingencies. 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 is recognized under ASC 606 when or as obligations under the terms of a contract with the Company’s customer have been satisfied and control has transferred to the customer. The Company has elected to exclude all taxes from the measurement of the transaction price. For contracts with commercial customers, which comprise the majority of the Company’s performance obligations, ownership of the goods and associated revenue are transferred to customers at a point in time, generally upon shipment of a product (“Direct Ship Parts”) to the customer or receipt of the product by the customer and without significant judgments. The majority of contracts typically require payment within 30 to 60 days after transfer of ownership to the customer. Contracts with the United States (“U.S.”) government through its prime contractors are typically for products or services with no alternative future use to the Company with an enforceable right to payment for performance completed to date, whereas commercial contracts typically have alternative use. Customized products with no alternative future use to the Company with an enforceable right to payment for performance completed to date are recorded over time utilizing the output method of units delivered. The Company considers this to be a faithful depiction of the transfer to the customer of revenue over time due to short cycle time and immaterial work-in-process balances. The majority of contracts typically require payment within 30 to 60 days after transfer of ownership to the customer. Service revenue includes repairs, non-recurring engineering, tolling arrangements and installation. Repairs, tolling and installation activities are usually completed in a short period of time (normally less than one month) and therefore recorded at a point in time when the services are completed. Non-recurring engineering arrangements are typically recognized over time under the time and material practical expedient, as the entity has a right to consideration from a customer, in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date. The majority of contracts typically require payment within 60 days. The Company’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. Under ASC 606, the Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administration expenses. The Company has elected to recognize the costs for freight and shipping when control over products has transferred to the customer as an expense in cost of sales. The Company monitors and tracks the amount of product returns and reduces revenue at the time of shipment for the estimated amount of future returns, based on historical experience. The Company makes estimates evaluating its allowance for doubtful accounts. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon its historical experience and any specific customer collection issues that it has identified. The Company offers an assurance-type limited warranty that products will be free from defects in materials and workmanship. The warranty is typically one year or the industry standard in length and is limited to either (1) the replacement or repair of the product or (2) a credit against future purchases. The products are not sold with a right of return. The Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year. 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 arrangements require 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. 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 (loss) income is a component of shareholders’ equity and consists of accumulated foreign currency translations adjustments and pension adjustments. 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. Operating The Company classifies operating leases 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 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. Capital The Company accounts for capital leases at the lesser of the estimated fair market value of the leased property or the net present value of the aggregate future minimum lease payments. The current and long-term portion of the capital lease obligation is recorded in other accrued liabilities and other liabilities, respectively, in the Consolidated Balance Sheet. Capital lease assets are included in property, plant & equipment and are generally depreciated over the term of the lease. Interest expense on capital leases are included in interest expense in the Consolidated Statements of Earnings. Recently Issued Financial Accounting Standards Revenue Recognition Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on July 1, 2018 using the modified retrospective method of adoption applied to all contracts at that date. Adoption of the ASU did not require an adjustment to the opening balance of equity. The standard did not have a significant effect on its results of operations, liquidity or financial position in fiscal year 2019. The Company implemented processes and controls to ensure new contracts are reviewed for the appropriate accounting treatment and to generate the disclosures required under the new standard. For the disclosures required by this ASU, see Note 5, Revenue from Contracts with Customers. Other Adopted Pronouncements In August 2018, the FASB issued ASU 2018-14, Disclosure Framework – Changes to the disclosure framework requirements for Defined Benefit Plans. This update defined a narrower set of disclosures required on the basis of an evaluation of whether the expected benefits of entities providing the information justify the expected costs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the disclosure requirements for fair value measurements. This update defined a narrower set of disclosures required on the basis of an evaluation of whether the expected benefits of entities providing the information justify the expected costs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. With the adoption of this standard, the Company restated the prior periods ending June 30, 2018, 2017, and 2016. These restatements did not have a material effect on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This update changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update requires that when intra-entity asset transfers occur, the entity must recognize tax effects in the period in which the transfer occurs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The guidance clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flow. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Pronouncements Currently Under Evaluation In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard will become effective for the Company’s fiscal year 2020, which begins on July 1, 2019. During fiscal year 2019, we conducted a survey to identify all leases across the organization (including embedded leases). We identified that a majority of our leases are categorized into one of three categories: office equipment, real estate and vehicles. We are finalizing the accumulation of lease data, including new leases entered into at the end of fiscal year 2019, and preparing the final transition adjustment calculations. We estimate that total assets and total liabilities will increase within the range of $90 million and $120 million on July 1, 2019 when the ASU is adopted. In July 2018, the FASB issued targeted improvements to ASU 2016-02 in ASU 2018-11. This update provides entities with an optional transition method, which permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We expect to use this new transition approach and the comparative periods presented in our fiscal 2020 consolidated financial statements will continue to be reported in accordance with ASC 840, Leases. We anticipate that we will elect the package of practical expedients allowed in the standard, which among other things, allows us to carry forward our historical lease classification. We also anticipate that we will make an accounting policy election to use the practical expedient allowed in the standard to not separate lease and non-lease components when calculating the lease liability under Topic 842. In July 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which among other things, requires the measurement of all expected credit losses of financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward looking information to better inform their credit loss estimates. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company is in the process of evaluating the impact of the pronouncement. |
Pending Merger
Pending Merger | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Pending Merger | Note 2. Pending Merger II-VI and Finisar Corporation (“Finisar”) have entered into an Agreement and Plan of Merger, dated as of November 8, 2018 (the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, Mutation Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of II-VI, will be merged with and into Finisar, and Finisar will continue as the surviving corporation in the merger and a wholly owned subsidiary of II-VI (the “Merger”). If the Merger is consummated, Finisar stockholders will be entitled to receive, at their election, consideration per share of common stock of Finisar (the “Finisar Common Stock”) consisting of (i) $26.00 in cash, without interest (the “Cash Election Consideration”), (ii) 0.5546 shares of II-VI common stock (the shares, the “II-VI Common Stock,” and the consideration, the “Stock Election Consideration”), or (iii) a combination of $15.60 in cash, without interest, and 0.2218 shares of II-VI Common Stock (the “Mixed Election Consideration,” and, together with the Cash Election Consideration and the Stock Election Consideration, the “Merger Consideration”). The Cash Election Consideration and the Stock Election Consideration are subject to proration adjustment pursuant to the terms of the Merger Agreement such that the aggregate Merger Consideration will consist of approximately 60% cash and approximately 40% II-VI Common Stock (assuming a per share price of II-VI common stock equal to the price when the Merger Agreement was signed on November 8, 2018, which was $46.88 per share) regardless of the individual election. At the effective time of the Merger (the “Effective Time”), each option granted pursuant to Finisar’s 2005 Stock Incentive Plan, as such plan has been further amended and restated (each, a “Finisar Stock Option”), or portion thereof, that is outstanding and unexercised as of immediately prior to the Effective Time (whether vested or unvested) will be cancelled, terminated and converted into the right to receive an amount of Mixed Election Consideration that would be payable to a holder of such number of shares of Finisar Common Stock equal to the quotient of (i) the product of (a) the excess, if any, of $26.00 over the exercise price per share of such Finisar Stock Option multiplied by divided by At the Effective Time, each restricted stock unit granted pursuant to Finisar’s 2005 Stock Incentive Plan, as such plan has been further amended and restated, each, a “Finisar Restricted Stock Unit”), or portion thereof, that is outstanding and subject to a performance-based vesting condition that relates solely to the value of Finisar Common Stock will, to the extent such Finisar Restricted Stock Unit vests in accordance with its terms in connection with the Merger (the “Participating RSUs”), be cancelled and extinguished and converted into the right to receive the Cash Election Consideration, the Stock Election Consideration or the Mixed Election Consideration at the election of the holder of such Participating RSUs, subject to proration adjustment. At the Effective Time, each Finisar Restricted Stock Unit (or portion thereof) that is outstanding and unvested, does not vest in accordance with its terms in connection with the Merger and is either (x) subject to time-based vesting requirements only or (y) subject to a performance-based vesting condition other than the value of Finisar Common Stock will be assumed by II-VI (each, an “Assumed RSU”). Each Assumed RSU will be subject to substantially the same terms and conditions as applied to the related Finisar Restricted Stock Unit immediately prior to the Effective Time, including the vesting schedule (and the applicable performance-vesting conditions in the case of a grant contemplated by clause (y) of the preceding sentence) and any provisions for accelerated vesting applicable thereto, except that the number of shares of II-VI Common Stock subject to each Assumed RSU will be equal to the product of (i) the number of shares of Finisar Common Stock underlying such unvested Finisar Restricted Stock Unit award as of immediately prior to the Effective Time multiplied by (ii) the sum of (a) 0.2218 plus (b) the quotient obtained by dividing (1) $15.60 by (2) the volume weighted average price per share of II-VI Common Stock (rounded to the nearest cent) on the Nasdaq Global Select Market for the ten consecutive trading days ending on (and including) the third trading day immediately prior to the Effective Time (with the resulting number rounded down to the nearest whole share). II-VI filed with the Securities and Exchange Commission a registration statement on Form S-4 relating to the Merger, and that registration statement became effective in accordance with the provisions of Section 8(a) of the Securities Act of 1933, as amended, on February 7, 2019. Shareholders of II-VI and stockholders of Finisar voted to approve proposals related to the Merger at special meetings held on March 26, 2019 by the respective companies. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the Merger has expired without a request for additional information. Other regulatory approvals applicable to the Merger have been obtained in Germany, Mexico and Romania. On November 8, 2018, in connection with its entry into the Merger Agreement, II-VI entered into a commitment letter (together with a related fee letter) with Bank of America, N.A., which was subsequently amended and restated on December 7, 2018 and on December 14, 2018 (together with one or more related fee letters, the “Commitment Letter”). Subject to the terms and conditions set forth in the Commitment Letter, the lender parties thereto severally committed to provide 100% of up to $2.425 billion in aggregate principal amount of senior secured credit facilities of II-VI. On March 4, 2019, II-VI entered into a Credit Agreement (the “New Credit Agreement”), by and among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and a L/C Issuer, and the other lenders party thereto. Pursuant to the terms and subject to the conditions therein, the New Credit Agreement provides for senior secured financing of $1.625 billion in the aggregate, consisting of (i) a five-year senior secured first-lien term A loan facility in an aggregate principal amount of $1.175 billion (the “Term A Facility”) and (ii) a five-year senior secured first-lien revolving credit facility in an aggregate principal amount of $450.0 million (the “Revolving Credit Facility” and together with the Term A Facility, the “New Senior Credit Facilities”). The New Credit Agreement also provides for a letter of credit sub-facility not to exceed $25.0 million and a swing loan sub-facility initially not to exceed $20.0 million, subject to adjustment in accordance with the terms of the New Credit Agreement. II-VI anticipates using the proceeds from the Term A Facility, together with a separately committed term B loan facility in an aggregate principal amount of up to $720.0 million (the “Term B Facility”) and cash and short-term investments of II-VI and Finisar, to pay the cash portion of the merger consideration payable in connection with the Merger and related fees and expenses. II-VI currently does not intend to draw on the Revolving Credit Facility in order to fund the cash portion of the merger consideration payable in connection with the Merger. The funding obligations of the lenders under the New Senior Credit Facilities are subject to certain currently unsatisfied conditions, including the consummation of the Merger. Accordingly, no borrowings are currently outstanding under the New Senior Credit Facilities, and II-VI currently is not able to borrow under the New Senior Credit Facilities. Further, II-VI expects that the New Credit Agreement will be amended prior to the Closing Date to reflect syndication of the Term B Facility and to finalize certain other terms in the New Credit Agreement. Upon the consummation of the Merger, the New Senior Credit Facilities, governed by the New Credit Agreement as it may be amended as of such time, will be used (i) to refinance in full the Amended Credit Facility (as defined in Note 9) and (ii) on or after the date of the consummation of the Merger, to repay amounts owed in connection with Finisar’s outstanding convertible notes, currently in an aggregate principal amount outstanding of $575.0 million, including the proceeds of a portion of the Term A Facility which will be available to II-VI for a certain period after the initial funding under the New Senior Credit Facilities. Unless and until the Merger is consummated and the other currently unsatisfied conditions to the funding obligations of the lenders under the New Senior Credit Facilities are satisfied or waived, the Amended Credit Facility remains in effect in accordance with its terms. The completion of the Merger is subject to the satisfaction or waiver of certain additional customary closing conditions, including review and approval of the Merger by the State Administration for Market Regulation in China. The Company is planning to refile with the State Administration for Market Regulation in China, extending the approval period. Subject to the satisfaction or waiver of each of the closing conditions, II-VI and Finisar expect that the Merger will be completed in the second half of calendar 2019. However, it is possible that factors outside the control of both companies could result in the Merger being completed at a different time or not at all. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3 . Acquisitions CoAdna, Inc. In September 2018, the Company acquired CoAdna Holdings, Inc. (“CoAdna”), a previously publicly traded company on the Taiwan Stock Exchange with headquarters in Sunnyvale, CA, in a cash transaction valued at approximately $85.0 million, inclusive of cash acquired of approximately $42.2 million at closing. CoAdna is a global leader in wavelength selective switches based on its patented liquid crystal platform. CoAdna operates within the Company’s II-VI Photonics operating segment. The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 5,684 Inventories 6,189 Prepaid and other assets 2,454 Property, plant & equipment 3,181 Intangible assets 16,072 Goodwill 24,898 Total assets acquired $ 58,478 Liabilities Accounts payable $ 4,006 Other accrued liabilities 4,103 Long term accrued income taxes 6,656 Deferred tax liabilities 897 Total liabilities assumed 15,662 Net assets acquired $ 42,816 The goodwill of $24.9 million is included in the II-VI Photonics segment and is attributed to the expected synergies and the assembled workforce of CoAdna. None of the goodwill is deductible for income tax purposes. The fair value of accounts receivable acquired was $5.7 million, with the gross contractual amount being $5.7 million. The Company expensed transaction costs during the year ended June 30, 2019 of $1.9 million. The amount of revenues of CoAdna included in the Company’s Consolidated Statements of Earnings for the year ended June 30, 2019 was $12.4 million, excluding sales to customers through our sales offices. The amount of net loss of CoAdna included in the Company’s Consolidated Statement of Earnings for the year ended June 30, 2019 was $0.6 million. Purchase of a Product Line In November 2018, the Company acquired certain assets of a product line in a cash transaction valued at approximately $10.0 million. The transaction was accounted for as a business combination under ASC 805 and ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. In conjunction with the acquisition of the product line, the Company acquired inventory of $0.2 million, equipment of $2.3 million, acquired technology of $6.3 million, and recorded goodwill of $1.2 million. The goodwill is deductible for income tax purposes. The goodwill is recorded in the II-VI Photonics segment and is attributable to the workforce acquired as part of the transaction. Transaction expenses for this acquisition were insignificant for the year ended June 30, 2019. Redstone Aerospace Corporation In March 2019, the Company acquired Redstone Aerospace Corporation (“Redstone”), an aerospace and defense company located in Colorado. Redstone has unique capabilities to continue our growth in the emerging high-energy market. The consideration consisted of initial cash paid at the acquisition date of $28.0 million, net of cash acquired. In addition, the acquisition agreement provides up to a maximum of $2.0 million of additional cash earn out opportunities based on achievement of certain agreed-upon financial objectives. The following table presents the final purchase price at the date of acquisition ($000): Net cash paid at acquisition $ 27,959 Fair value of cash earnout arrangement 1,776 Purchase price $ 29,735 The following table presents a final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 1,606 Other Assets 215 Property, plant & equipment 350 Intangible assets 9,100 Goodwill 21,596 Total assets acquired $ 32,867 Liabilities Non-Interest bearing liabilities $ 980 Deferred tax liabilities 2,152 Total liabilities assumed 3,132 Net assets acquired $ 29,735 The goodwill of $21.6 million is recorded in the II-VI Performance Products segment and is attributed to the expected synergies and the assembled workforce of Redstone. The goodwill is non-deductible for income tax purposes. At the time of the acquisition, the Company expected to collect all of the accounts receivable. Transaction expenses for this acquisition were insignificant for the year ended June 30, 2019. The amount of revenues and net earnings from the acquisition included in the Company’s Consolidated Statements of Earnings for the year ended June 30, 2019 were insignificant. |
Other Investments
Other Investments | 12 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Other Investments | Note 4 . Other Investments Purchase of Equity Investment In November 2017, the Company acquired a 93.8% equity investment in a privately-held company for $51.5 million. The Company’s pro-rata share of earnings from this investment since the acquisition date was $1.3 million and $2.4 million for the years ended June 30, 2019 and 2018, respectively, and was recorded in other expense (income), net in the Consolidated Statement of Earnings. This investment is accounted for under the equity method of accounting (“Equity Investment”). The following table summarizes the Company's equity in this nonconsolidated investment: Interest Ownership % as of Equity as of Location Type June 30, 2019 June 30, 2019 ($000) USA Equity Investment 93.8% $ 57,645 The Equity Investment has been determined to be a variable interest entity because the Company has an overall 93.8% economic position in the investee, comprising a significant portion of its capitalization, but has only a 25% voting interest. The Company’s obligation to receive rewards and absorb expected losses is disproportionate to its voting interest. The Company is not the primary beneficiary because it does not have the power to direct the activities of the equity investment that most significantly impact its economic performance. Certain business decisions, including decisions with respect to operating budgets, material capital expenditures, indebtedness, significant acquisitions or dispositions, and strategic decisions, require the approval of owners holding a majority percentage in the Equity Investment. Beginning on the date it was acquired, the Company accounted for its interest as an equity method investment as the Company has the ability to exercise significant influence over operating and financial policies of the Equity Investment. As of June 30, 2019, the Company’s maximum financial statement exposure related to the Equity Investment was approximately $57.6 million, which is included in Investments on the Consolidated Balance Sheet as of June 30, 2019. The Company has the right to purchase all of the outstanding interest of each of the minority equity holders and the minority equity holders have the right to cause the Company to purchase all of their outstanding interests at any time on or after the third anniversary of the investment, or earlier upon certain events. The purchase price is equal to the greater of: (a) (i) the product of the aggregate trailing 12-month revenues of the equity investment preceding the date of purchase, multiplied by (ii) a factor of 2.9 multiplied by (iii) a factor of 0.723, multiplied by (iv) the percentage interest owned by each minority equity holder and (b) $966,666. The Company performed a Monte Carlo simulation to estimate the fair value of the net put option at the investment date and recorded a liability of $2.2 million in Other long-term liabilities in the Consolidated Balance Sheet in accordance with ASC 815-10, Derivatives and Hedging. The fair value of the net put option is adjusted as necessary on a quarterly basis, with any changes in the fair value recorded through earnings. The change in fair value of the net purchase option from the investment date to June 30, 2019 was not material. Guangdong Fuxin Electronic Technology Equity Investment The Company has an equity investment of 20.2% in Guangdong Fuxin Electronic Technology, based in Guangdong Province, China, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at June 30, 2019 and June 30, 2018 was $14.1 million and $12.9 million, respectively. During the years ended June 30, 2019, 2018 and 2017, the Company’s pro-rata share of earnings from this investment was $1.9 million, $1.2 million and $0.7 million, respectively, and was recorded in other expense (income), net in the Consolidated Statements of Earnings. During the years ended June 30, 2019, 2018 and 2017, the Company received dividends from this equity investment of $0.7 million, $0.4 million and $0.4 million, respectively. Other Equity Investment During the quarter ended September 30, 2018, the Company acquired a 10% equity investment in a privately-held company for $4.5 million. The Company has determined that the equity interest does not give it the ability to exercise significant influence or joint control. Therefore, the Company will not account for this investment under the equity method of accounting. Under ASU 2016-01, Financial Instruments, the Company has elected the measurement alternative, as the investment does not have a readily determinable fair value. Under the alternative, the Company measures the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investment of the Company for which there were none during the year ended June 30, 2019. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | Note 5. Revenue from Contracts with Customers The following table summarizes disaggregated revenue by market and product for the year ended June 30, 2019 ($000): Twelve Months Ended June 30, 2019 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Total Commercial Direct Ship Parts $ 382,066 $ 631,407 $ 181,036 $ 1,194,509 Services 3,738 7,482 10,426 21,646 U.S. Government Direct Ship Parts $ 10,751 $ - $ 119,562 $ 130,313 Services 18 - 16,010 16,028 Total Revenues $ 396,573 $ 638,889 $ 327,034 $ 1,362,496 Contract Liabilities Payments received from customers are based on invoices or billing schedules as established in contracts with customers. Contract liabilities relate to billings in advance of performance under the contract. Contract liabilities are recognized as revenue when the performance obligation has been performed. During the year ended June 30, 2019, the Company recognized revenue of $3.4 million related to customer payments that were included in the consolidated balance sheet as of July 1, 2018. As of June 30, 2019, the Company had $19.4 million of contract liabilities recorded in the consolidated balance sheet. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6 . Inventories The components of inventories were as follows: June 30, 2019 2018 ($000) Raw materials $ 119,917 $ 97,502 Work in progress 101,091 83,002 Finished goods 75,274 67,764 $ 296,282 $ 248,268 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant & Equipment | Note 7 . Property, Plant & Equipment Property, plant & equipment consist of the following: June 30, 2019 2018 ($000) Land and land improvements $ 9,001 $ 9,072 Buildings and improvements 249,238 216,507 Machinery and equipment 739,330 633,934 Construction in progress 71,425 88,350 1,068,994 947,863 Less accumulated depreciation (486,204 ) (422,973 ) $ 582,790 $ 524,890 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 8 . 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 value at the date of acquisition. Changes in the carrying amount of goodwill were as follows ($000): Year Ended June 30, 2019 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 Goodwill acquired - 26,069 25,569 51,638 Foreign currency translation (856 ) (1,682 ) - (2,538 ) Balance-end of period $ 97,881 $ 134,057 $ 87,840 $ 319,778 Year Ended June 30, 2018 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 79,527 $ 108,544 $ 62,271 $ 250,342 Goodwill acquired 18,956 - - 18,956 Goodwill adjustment for prior year acquisition - IPI - 407 - 407 Foreign currency translation 254 719 - 973 Balance-end of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2019 and 2018 were as follows ($000): June 30, 2019 June 30, 2018 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 91,637 $ (39,679 ) $ 51,958 $ 66,812 $ (32,979 ) $ 33,833 Trade Names 15,759 (1,601 ) 14,158 15,882 (1,471 ) 14,411 Customer Lists 132,872 (59,664 ) 73,208 127,603 (50,792 ) 76,811 Other 1,572 (1,572 ) - 1,573 (1,559 ) 14 Total $ 241,840 $ (102,516 ) $ 139,324 $ 211,870 $ (86,801 ) $ 125,069 Amortization expense recorded on the intangible assets for the fiscal years ended June 30, 2019, 2018 and 2017 was $16.6 million, $14.6 million, and $12.7 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 84 months. The customer lists are being amortized over 60 to 240 months with a weighted-average remaining life of approximately 130 months. In conjunction with the acquisition of CoAdna, the Company recorded $9.8 million attributed to the value of technology and patents and $6.3 million of customer lists. The intangibles were recorded based on the Company’s purchase price allocation utilizing either the multi-period excess earnings method or relief from royalty method to derive the fair value. In conjunction with the acquisition of the product line, the Company recorded $6.3 million of acquired technology. The acquired technology was recorded based on the Company’s purchase price allocation utilizing a relief from royalty method to derive the fair value. In conjunction with the acquisition of Redstone, the Company recorded $9.1 million of acquired technology. The acquired technology was recorded based on the Company’s purchase price allocation utilizing a relief from royalty method to derive the fair value. In connection with past acquisitions, the Company acquired trade names with indefinite lives. The carrying amount of these trade names of $14.0 million as of June 30, 2019 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 2019 and 2018. Based on the results of these tests, the trade names were not impaired in fiscal years 2019 and 2018. The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000): Year Ending June 30, 2020 $ 16,700 2021 16,300 2022 14,800 2023 14,400 2024 14,000 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 . Debt The components of debt were as follows ($000): June 30, 2019 2018 0.25% Convertible senior notes $ 345,000 $ 345,000 Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount (43,859 ) (56,409 ) Term loan, interest at LIBOR, as defined, plus 1.75% 45,000 65,000 Line of credit, interest at LIBOR, as defined, plus 1.75% 115,000 80,000 Amended credit facility unamortized debt issuance costs (761 ) (1,126 ) Yen denominated line of credit, interest at LIBOR, as defined, plus 1.75% 2,783 2,714 Note payable assumed in IPI acquisition 3,834 3,834 Total debt 466,997 439,013 Current portion of long-term debt (23,834 ) (20,000 ) Long-term debt, less current portion $ 443,163 $ 419,013 0.25% Convertible Senior Notes On August 24, 2017, the Company entered into a purchase agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several initial purchasers named therein (collectively, the “Initial Purchasers”), pursuant to which the Company issued and sold $345 million aggregate principal amount of our 0.25% convertible senior notes due 2022 (the "Notes") in a private placement to qualified institutional buyers within the meaning of Rule 144A under the Securities Act of 1933, as amended. The Notes mature on September 1, 2022, unless earlier repurchased by the Company or converted by holders in accordance with the terms of the Notes. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The sale of the Notes to the Initial Purchasers settled on August 29, 2017, and resulted in approximately $336 million in net proceeds to the Company after deducting the initial purchasers’ discount and offering expenses. The net proceeds from the offering and sale of the Notes were used, in part, to repurchase approximately $49.9 million of our common stock. The Company used the remaining net proceeds to repay $252 million on its revolving credit facility and to pay debt issuance costs of $10.1 million. The Notes are governed by an Indenture between the Company, as issuer, and U.S. Bank, National Association, as trustee. The Notes are our senior unsecured obligations and rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to any of our indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. In the event of our bankruptcy, liquidation, reorganization or other winding up, our assets that secure secured debt will be available to pay obligations on the Notes only after all indebtedness under such secured debt has been repaid in full from such assets. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at the Company’s election. As a result of our cash conversion option, the Company separately accounted for the value of the embedded conversion option as a debt discount. The value of the embedded conversion option was determined based on the estimated fair value of the debt without the conversion feature, which was determined using an expected present value technique (income approach) to estimate the fair value of similar nonconvertible debt; the debt discount is being amortized as additional non-cash interest expense over the term of the Notes using the effective interest method with an effective interest rate of 4.5% per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The initial conversion rate is 21.25 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of $47.06 per share of common stock. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. The if-converted value of the Notes amounted to $268.0 million as of June 30, 2019 (based on the Company’s closing stock price on the last trading day of the year ended June 30, 2019). Holders of the Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than cancelled, extinguished or forfeited. Prior to the close of business on the business day immediately preceding June 1, 2022, the Notes will be convertible only upon satisfaction of at least one of the conditions as follows: a) During any fiscal quarter (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price on each applicable trading day; b) During the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or c) Upon the occurrence of specified corporate events. On or after June 1, 2022 until the close of business on the business day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. As of June 30, 2019, the Notes are not yet convertible. The Notes will become convertible upon the satisfaction of at least one of the above conditions. In accounting for the transaction costs related to the Note issuance, the Company allocated the total amount of offering costs incurred to the debt and equity components based on their relative values. Offering costs attributable to the debt component, totaling $8.4 million, are being amortized as non-cash interest expense over the term of the Notes, and offering costs attributable to the equity component, totaling $1.7 million, were recorded within Shareholders' Equity. The Company was in compliance with all the covenants set forth under the indenture. The following table sets forth total interest expense recognized related to the Notes for the fiscal year ended June 30, 2019 (representing an effective interest rate of 4.5%): Year ended June 30, 2019 2018 0.25% contractual coupon $ 874 $ 731 Amortization of debt discount and debt issuance costs including initial purchaser discount 12,550 10,058 Interest expense $ 13,424 $ 10,789 The unamortized discount amounted to $38.3 million as of June 30, 2019 and is being amortized over approximately 3 years. Amended Credit Facility On July 28, 2016, the Company amended and restated its existing credit agreement. The Third Amended and Restated Credit Agreement (the “Amended Credit Facility”) provides for a revolving credit facility of $325 million, as well as a $100 million term loan. The term loan is being repaid in consecutive quarterly principal payments on the first business day of each January, April, July and October, with the first payment having commenced on October 1, 2016, as follows: (i) twenty consecutive quarterly installments of $5 million and (ii) a final installment of all remaining principal due and payable on the maturity date of July 27, 2021. Amounts borrowed under the revolving credit facility are due and payable on the maturity date. The Amended Credit Facility is unsecured, but is guaranteed by each existing and subsequently acquired or organized wholly-owned domestic subsidiary of the Company. The Company has the option to request an increase to the size of the revolving credit facility in an aggregate additional amount not to exceed $100 million. The Amended Credit Facility has a five-year term through July 27, 2021 and has an interest rate of either a Base Rate Option or a Euro-Rate Option, plus an Applicable Margin, as defined in the agreement governing the Amended Credit Facility. If the Base Rate option is selected for a borrowing, the Applicable Margin is 0.00% to 1.25% and if the Euro-Rate Option is selected for a borrowing, the Applicable Margin is 1.00% to 2.25%. The Applicable Margin is based on the ratio of the Company’s consolidated indebtedness to consolidated EBITDA. Additionally, the Credit Facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of June 30, 2019, the Company was in compliance with all financial covenants under its Amended Credit Facility. Yen Loan The Company’s yen denominated line of credit is a 500 million Yen ($4.6 million) facility. The Yen line of credit matures in August 2020. The interest rate equal to LIBOR, as defined in the loan agreement, plus 0.625% to 1.75%. At June 30, 2019 and 2018, the Company had 300 million yen outstanding under the line of credit. Additionally, the facility is subject to certain covenants, including those relating to minimum interest coverage and maximum leverage ratios. As of June 30, 2019, the Company had $2.8 million outstanding and was in compliance with all covenants under its Yen facility. Note Payable In conjunction with the acquisition of IPI, the Company assumed a non-interest bearing note payable owed to a major customer of IPI. The agreement, if not terminated early by either party, is payable in full in January 2020. Aggregate Availability The Company had aggregate availability of $211.9 million and $246.4 million under its lines of credit as of June 30, 2019 and 2018, respectively. The amounts available under the Company’s lines of credit are reduced by outstanding letters of credit. Total outstanding letters of credit supported by the credit facilities were immaterial as of June 30, 2019, and $0.4 million at June 30, 2018. Weighted Average Interest Rate The weighted average interest rate of total borrowings was 1.6% and 1.3% for the years ended June 30, 2019 and 2018, respectively. The weighted average of total borrowings for the fiscal years ended June 30, 2019 and 2018 was $533.9 million and $476.6 million, respectively. 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 years ended June 30, 2019, 2018 and 2017 were $9.2 million, $6.6 million and $6.1 million, respectively. Remaining Annual Principal Payments Remaining annual principal payments under the Company’s existing credit facilities and notes payable as of June 30, 2019 were as follows ($000): U.S. Dollar Term Yen Line Line of Note Convertibles Year Ended Loan of Credit Credit Payable Notes Total June 30, 2020 $ 20,000 $ - $ - $ 3,834 $ - $ 23,834 June 30, 2021 20,000 2,783 - - - $ 22,783 June 30, 2022 5,000 - 115,000 - - $ 120,000 June 30, 2023 - - - - 345,000 $ 345,000 June 30, 2024 - - - - - $ - Total $ 45,000 $ 2,783 $ 115,000 $ 3,834 $ 345,000 $ 511,617 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 . Income Taxes The components of earnings (losses) before income taxes were as follows: Year Ended June 30, 2019 2018 2017 ($000) U.S. loss $ (34,241 ) $ (15,207 ) $ (6,944 ) Non-U.S. income 163,054 137,401 125,732 Earnings before income taxes $ 128,813 $ 122,194 $ 118,788 The components of income tax expense were as follows: Year Ended June 30, 2019 2018 2017 ($000) Current: Federal $ 1,755 $ 699 $ 2,133 State 472 401 253 Foreign 29,531 32,147 22,312 Total Current $ 31,758 $ 33,247 $ 24,698 Deferred: Federal $ (3,764 ) $ (3,064 ) $ (6,963 ) State (2,010 ) 1,615 (1,251 ) Foreign (4,688 ) 2,394 7,030 Total Deferred $ (10,462 ) $ 945 $ (1,184 ) Total Income Tax Expense $ 21,296 $ 34,192 $ 23,514 Principal items comprising deferred income taxes were as follows: June 30, 2019 2018 ($000) Deferred income tax assets Inventory capitalization $ 5,687 $ 5,267 Non-deductible accruals 1,251 1,125 Accrued employee benefits 9,797 7,614 Net-operating loss and credit carryforwards 54,192 48,738 Share-based compensation expense 7,192 7,925 Other 5,488 3,242 Valuation allowances (16,558 ) (21,797 ) Total deferred income tax assets $ 67,049 $ 52,114 Deferred income tax liabilities Tax over book accumulated depreciation $ (28,184 ) $ (24,174 ) Intangible assets (28,202 ) (24,649 ) Tax on unremitted earnings (11,662 ) (13,090 ) Convertible debt (8,662 ) (11,376 ) Other (5,728 ) (4,020 ) Total deferred income tax liabilities $ (82,438 ) $ (77,309 ) Net deferred income taxes $ (15,389 ) $ (25,195 ) The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense is as follows: Year Ended June 30, 2019 % 2018 % 2017 % ($000) Taxes at statutory rate 27,051 21 $ 34,284 28 $ 41,576 35 Increase (decrease) in taxes resulting from: State income taxes-net of federal benefit (1,212 ) (1 ) 1,426 1 (641 ) - Taxes on non U.S. earnings (5,857 ) (5 ) (16,058 ) (13 ) (12,907 ) (11 ) Valuation allowance (6,703 ) (5 ) (6,008 ) (5 ) (806 ) (1 ) Research and manufacturing incentive deductions and credits (11,756 ) (9 ) (7,024 ) (6 ) (5,681 ) (5 ) Stock compensation (1,914 ) (1 ) (4,103 ) (3 ) 1,770 2 Repatriation tax 14,108 11 36,777 30 - - GILTI and FDII 6,437 5 - - - - Impact of U.S. tax rate change on deferred balances - - (4,209 ) (3 ) - - Other 1,142 1 (893 ) (1 ) 203 - $ 21,296 17 $ 34,192 28 $ 23,514 20 U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act includes changes to the U.S. statutory federal tax rate and puts into effect the migration from a worldwide system of taxation to a territorial system, among other things. As of December 31, 2018, the Company completed its analysis of the impact of the Tax Act in accordance with U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118 (“SAB 118”) and the amounts are no longer considered provisional. The Company’s transition tax increased due to finalization of calculations and consideration of Notices and regulations issued by the US Department of Treasury and the Internal Revenue Service; however, the increase is offset by available net operating loss and credit carryforwards which currently have a valuation allowance. Consequently, the tax expense reported is reduced by the release of the valuation allowance on the U.S. deferred tax assets, and as result, there was no material financial statement impact due to finalization. The Company previously considered the earnings in non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. As a result of the Act, among other things, the Company determined it will repatriate earnings for all non-U.S. Subsidiaries with cash in excess of working capital needs. Such distributions could potentially be subject to U.S. state tax in certain states and foreign withholding taxes. Foreign currency gains/losses related to the translation of previously taxed earnings from functional currency to U.S. dollars could also be subject to U.S. tax when distributed. The Company has estimated the associated withholding tax to be $11.7 million. Furthermore, the Tax Act includes certain changes such as introducing a new category of income, referred to as global intangible low tax income (“GILTI”), related to earnings taxed at a low rate of foreign entities without a significant fixed asset base, and imposes additional limitations on the deductibility of interest and officer compensation. The Company made a final accounting policy election to treat taxes due from future inclusions in U.S. taxable income related to GILTI as a current period expense when incurred. These changes are included in the Company’s 2019 fiscal year income tax expense. During the fiscal years ended June 30, 2019, 2018, and 2017, net cash paid by the Company for income taxes was $26.3 million, $21.3 million, and $23.6 million, respectively. Our foreign subsidiaries in the Philippines operate under various tax holiday arrangements. The benefits of such arrangements phased 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 0.25%, 0.17% and 0.31% for the fiscal years ended June 30, 2019, 2018 and 2017, respectively, and the impact of the tax holidays on diluted earnings per share is immaterial. The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2019: Type Amount Expiration Date ($000) Tax credit carryforwards: Federal research and development credits $ 20,084 June 2029-June 2039 Foreign tax credits 1,088 June 2025-June 2027 State tax credits 12,449 June 2020-June 2039 State tax credits (indefinite) 448 Indefinite Operating loss carryforwards: Loss carryforwards - federal $ 59,749 June 2020-June 2036 Loss carryforwards - state 52,762 June 2020-June 2039 Loss carryforwards - foreign 8,467 June 2021-June 2027 Loss carryforwards - foreign (indefinite) 8,502 Indefinite The Company has recorded a valuation allowance against the majority of the loss and credit carryforwards. The Company’s U.S. federal loss carryforwards, federal research and development credit carryforwards, and certain state tax credits resulting from the Company’s acquisitions are subject to various annual limitations under Section 382 of the U.S. Internal Revenue Code. Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2019, 2018 and 2017 were as follows: 2019 2018 2017 ($000) Beginning balance $ 9,892 $ 7,577 $ 5,559 Increases in current year tax positions 191 2,536 895 Increases in prior year tax positions 376 224 2,605 Decreases in prior year tax positions - (9 ) - Acquired business 6,036 - - Settlements - - (1,143 ) Expiration of statute of limitations (4,975 ) (436 ) (339 ) Ending balance $ 11,520 $ 9,892 $ 7,577 The Company classifies all estimated and actual interest and penalties as income tax expense. During fiscal years 2019, 2018 and 2017, there was $(0.1) million, $0.3 million and $0.5 million of interest and penalties within income tax expense, respectively. The Company had $1.2 million, $0.6 million and $0.3 million of interest and penalties accrued at June 30, 2019, 2018 and 2017, respectively. The Company has classified the uncertain tax positions as non-current income tax liabilities, as the amounts are not expected to be paid within one year. Including tax positions for which the Company determined that the tax position would not meet the more likely than not recognition threshold upon examination by the tax authorities based upon the technical merits of the position, the total estimated unrecognized tax benefit that, if recognized, would affect our effective tax rate, was approximately $6.2 million, $1.6 million and $1.3 million at June 30, 2019, 2018 and 2017, respectively. The Company expects a decrease of $2.2 million of unrecognized tax benefits during the next 12 months due to the expiration of statutes of limitation. Fiscal years 2017 to 2019 remain open to examination by the Internal Revenue Service, fiscal years 2014 to 2019 remain open to examination by certain state jurisdictions, and fiscal years 2008 to 2019 remain open to examination by certain foreign taxing jurisdictions. The Company is currently under examination for the certain subsidiary companies in Florida for the years ended June 30, 2016 through June 30, 2018; Philippines for the year ended June 30, 2017; Germany for the years ended June 30, 2012 through June 30, 2015; and Vietnam for the years June 30, 2018 through June 30, 2019. The Company believes its income tax reserves for these tax matters are adequate. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11 . Earnings Per Share The following table sets forth the computation of earnings per share for the periods indicated. Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share has been computed using the weighted average number of common shares outstanding during the period plus dilutive potential shares of common stock from (1) stock options, performance and restricted shares (under the treasury stock method) and (2) convertible debt (under the If-Converted method) outstanding during the period. The Company’s convertible debt calculated under the If-Converted method was antidilutive for the fiscal years 2019 and 2018 and was excluded from the calculation of earnings per share. Year Ended June 30, 2019 2018 2017 ($000 except per share) Net earnings $ 107,517 $ 88,002 $ 95,274 Divided by: Weighted average shares 63,584 62,499 62,576 Basic earnings per common share $ 1.69 $ 1.41 $ 1.52 Net earnings $ 107,517 $ 88,002 $ 95,274 Divided by: Weighted average shares 63,584 62,499 62,576 Dilutive effect of common stock equivalents 2,220 2,634 1,931 Diluted weighted average common shares 65,804 65,133 64,507 Diluted earnings per common share $ 1.63 $ 1.35 $ 1.48 The following table presents potential shares of common stock excluded from the calculation of diluted net income per share, as their effect would have been antidilutive ($000): Year Ended June 30, 2019 2018 2017 Stock options and restricted shares 115 135 140 0.25% Convertible Senior Notes due 2022 7,331 7,331 - Total anti-dilutive shares 7,446 7,466 140 |
Operating Leases
Operating Leases | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating Leases | Note 12 . 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, 2019 are as follows: Year Ending June 30, ($000) 2020 $ 23,000 2021 17,700 2022 14,300 2023 11,200 2024 9,700 Thereafter 44,000 Rent expense was approximately $20.0 million, $17.0 million, and $14.7 million for the fiscal years ended June 30, 2019, 2018 and 2017, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shared-Based Compensation | Note 1 3 . Share-Based Compensation The Company’s Board of Directors adopted the II-VI Incorporated 2018 Omnibus Incentive Plan (the “Plan”), which was approved by the shareholders at the Annual Meeting in November 2018. 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 3,550,000 shares of common stock, not including any remaining shares forfeited under the predecessor plans that may be rolled into the Plan. The Plan has vesting provisions predicated upon the death, retirement or disability of the grantee. As of June 30, 2019, there were approximately 3.6 million shares available to be issued under the Plan, including forfeited shares from predecessor plans. The Company records share-based compensation expense for these awards, 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, 2019, 2018 and 2017 is as follows ($000): Year Ended June 30, 2019 2018 2017 Stock Options and Cash-Based Stock Appreciation Rights $ 6,801 $ 6,605 $ 5,611 Restricted Share Awards, Restricted Share Units, and Cash-Based Restricted Share Units 9,242 7,850 6,799 Performance Share Awards and Cash Based Performance Share Unit Awards 8,920 5,221 3,626 $ 24,963 $ 19,676 $ 16,036 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 grantee. Share-based compensation expense associated with liability awards was $3.0 million, $4.4 million, and $4.3 million, in the fiscal years ended June 30, 2019, 2018 and 2017, 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, 2019, 2018 and 2017, the weighted-average fair value of options granted under the stock option plan was $20.66, $14.23 and $8.88, respectively, per option using the following assumptions: Year Ended June 30, 2019 2018 2017 Risk-free interest rate 2.80 % 2.00 % 1.43 % Expected volatility 37 % 37 % 37 % Expected life of options 6.96 years 6.43 years 6.28 years Dividend yield None None None The risk-free interest rate is derived from the average U.S. Treasury Note rate during the period, which approximates the rate in effect at the time of grant related to the expected life of the options. The risk-free interest rate shown above is the weighted average rate for all options granted during the fiscal year. Expected volatility is based on the historical volatility of the Company’s common stock over the period commensurate with the expected life of the options. The expected life calculation is based on the observed time to post-vesting exercise and/or forfeitures of options by our employees. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no current intention to pay cash dividends in the future. The estimated annualized forfeitures are based on the Company’s historical experience of option pre-vesting cancellations and are estimated at a rate of 16.0%. 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, 2019 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, 2018 3,928,708 $ 20.07 205,448 $ 22.56 Granted 412,940 $ 47.61 48,305 $ 48.56 Exercised (522,173 ) $ 16.66 (21,562 ) $ 20.45 Forfeited and Expired (58,192 ) $ 26.29 (4,695 ) $ 31.43 Outstanding - June 30, 2019 3,761,283 $ 23.47 227,496 $ 28.09 Exercisable - June 30, 2019 2,348,812 $ 18.62 89,827 $ 27.50 As of June 30, 2019, 2018 and 2017, the aggregate intrinsic value of stock options and cash-based stock appreciation rights outstanding and exercisable was $56.4 million, $96.1 million and $69.3 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, 2019, 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, 2019. 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, 2019, 2018, and 2017 was $14.7 million, $14.7 million, and $12.3 million, respectively. As of June 30, 2019, total unrecognized compensation cost related to non-vested stock options and cash-based stock appreciation rights was $13.8 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, 2019 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 $12.07 - $16.97 825,579 3.52 $ 14.41 720,059 3.28 $ 14.47 $16.98 - $18.06 799,765 4.52 $ 17.72 591,237 3.95 $ 17.68 $18.07 - $21.65 734,900 4.04 $ 19.24 688,310 3.87 $ 19.20 $21.66 - $33.75 679,449 7.15 $ 22.25 309,016 7.02 $ 22.01 $33.76 - $49.90 949,096 8.62 $ 41.48 130,017 8.08 $ 35.82 3,988,789 5.65 $ 23.74 2,438,639 4.34 $ 18.68 Restricted Share Awards, Restricted Share Units, and Cash-Based Restricted Share Unit Awards: Restricted share awards, restricted share units, 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, restricted share units, and cash-based restricted share unit awards have a three- year tranche vesting provision and an estimated forfeiture rate of 4.5%. Restricted share, restricted share unit, and cash-based restricted share unit activity during the fiscal year ended June 30, 2019, was as follows: Restricted Share Awards Restricted Share Units Cash-Based Restricted Share Units Number of Weighted Average Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2018 595,519 $ 24.58 - $ - 117,326 $ 25.57 Granted - $ - 177,609 $ 47.16 30,506 $ 49.05 Vested (401,341 ) $ 21.96 - $ - (68,846 ) $ 22.67 Forfeited (10,749 ) $ 27.15 (1,872 ) $ 49.90 (1,344 ) $ 35.59 Nonvested - June 30, 2019 183,429 $ 30.30 175,737 $ 47.13 77,642 $ 37.19 As of June 30, 2019, total unrecognized compensation cost related to non-vested restricted share, restricted share unit, and cash-based restricted share unit awards was $9.1 million. This cost is expected to be recognized over a weighted-average period of approximately two years. The restricted share and restricted share unit 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, restricted share unit, and cash-based restricted share unit awards granted during the years ended June 30, 2019, 2018 and 2017, was $9.9 million, $7.5 million and $7.8 million, respectively. The total fair value of restricted shares and cash-based restricted share unit awards vested was $19.9 million, $17.0 million and $6.2 million during fiscal years 2019, 2018 and 2017, 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, 2019, the Company had outstanding grants covering performance periods ranging from 12 to 36 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, 2019, 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, 2018 382,270 $ 24.57 17,279 $ 25.71 Granted 218,583 $ 38.00 11,943 $ 44.00 Vested (100,481 ) $ 17.84 (4,398 ) $ 17.84 Forfeited (86,721 ) $ 22.24 (600 ) $ 38.77 Nonvested - June 30, 2019 413,651 $ 36.80 24,224 $ 37.47 As of June 30, 2019, total unrecognized compensation cost related to non-vested performance share and cash-based performance share unit awards was $5.7 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, 2019, 2018 and 2017 was $10.0 million, $3.8 million and $5.3 million, respectively. The total fair value of performance shares vested during the fiscal years ended June 30, 2019, 2018 and 2017 was $10.5 million, $3.6 million and $5.9 million, respectively. For our relative Total Shareholder Return (“TSR”) performance-based awards, which are based on market performance of our stock as compared to the Russel 2000 Index, the compensation cost is recognized over the performance period on a straight-line basis net of forfeitures, because the awards vest only at the end of the measurement period and the probability of actual shares expected to be earned is considered in the grant date valuation. As a result, the expense is not adjusted to reflect the actual shares earned. We estimate the fair value of the TSR performance-based awards using the Monte-Carlo simulation model. |
Segment and Geographic Reportin
Segment and Geographic Reporting | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | Note 1 4 . 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. 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 II-VI Laser Solutions segment is located in the United States, Singapore, China, Germany, Switzerland, Japan, Belgium, the United Kingdom, Italy, South Korea, the Philippines and Taiwan. 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 United States, China, Vietnam, Germany, Japan, the United Kingdom, Italy and Hong Kong. II-VI Photonics manufactures crystal materials, optics, microchip lasers and optoelectronic modules for use in optical communication networks and other diverse consumer and commercial applications. In addition, the segment manufactures pump lasers, optical isolators, 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 United States, Vietnam, Japan, China, Germany and the Philippines. 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 aerospace and defense, medical and commercial laser imaging applications. In addition, the segment designs, manufactures and markets unique engineered materials for thermoelectric and silicon carbide applications servicing the semiconductor, aerospace and defense and medical markets. Effective July 1, 2018 the Company realigned the composition of its operating segments. The Company moved Laser Systems Group from II-VI Laser Solutions to II-VI Photonics and moved Integrated Photonics, Inc. from II-VI Photonics to II-VI Performance Products. All applicable segment information has been restated to reflect this change. In September 2018, November 2018, and March 2019, the Company completed its acquisitions of CoAdna, an additional product line, and Redstone, respectively. See Note 3, Acquisitions. The operating results of these acquisitions have been reflected in the selected financial information of the Company’s II-VI Photonics segment, with the exclusion of Redstone that is reflected in the II-VI Performance Products Segment, since the date of the acquisitions. The accounting policies are consistent across each of the segments. To the extent possible, the Company’s corporate expenses 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. Eliminations and Other include eliminating inter-segment sales and transfers as well as transaction costs related to the pending Finisar acquisition. The following tables summarize selected financial information of the Company’s operations by segment: II-VI II-VI Laser II-VI Performance Eliminations Solutions Photonics Products & Other Total ($000) 2019 Revenues $ 396,573 $ 638,889 $ 327,034 $ - $ 1,362,496 Inter-segment revenues 91,507 10,745 20,928 (123,180 ) - Operating income 40,261 81,898 42,153 (15,643 ) 148,668 Interest expense - - - - (22,417 ) Other income, net - - - - 2,562 Income taxes - - - - (21,296 ) Net earnings - - - - 107,517 Depreciation and amortization 44,529 26,273 21,563 - 92,365 Expenditures for property, plant & equipment 43,936 44,851 39,963 - 128,750 Segment assets 716,788 681,610 555,375 - 1,953,773 Goodwill 97,881 134,057 87,840 - 319,778 II-VI II-VI Laser II-VI Performance Eliminations Solutions Photonics Products & Other Total ($000) 2018 Revenues $ 405,940 $ 486,485 $ 266,369 $ - $ 1,158,794 Inter-segment revenues 34,590 11,180 26,262 (72,032 ) - Operating income 40,119 63,152 33,492 - 136,763 Interest expense - - - - (18,352 ) Other income, net - - - - 3,783 Income taxes - - - - (34,192 ) Net earnings - - - - 88,002 Depreciation and amortization 38,004 23,242 19,524 - 80,770 Expenditures for property, plant & equipment 80,776 36,122 44,425 - 161,323 Segment assets 740,020 554,574 467,067 - 1,761,661 Goodwill 98,737 109,670 62,271 - 270,678 II-VI II-VI Laser II-VI Performance Eliminations Solutions Photonics Products & Other Total ($000) 2017 Revenues $ 317,495 $ 440,361 $ 214,190 $ - $ 972,046 Inter-segment revenues 33,669 8,003 10,189 (51,861 ) - Operating income 27,459 66,462 21,635 - 115,556 Interest expense - - - - (6,809 ) Other income, net - - - - 10,041 Income taxes - - - - (23,514 ) Net earnings - - - - 95,274 Depreciation and amortization 24,684 21,612 17,341 - 63,637 Expenditures for property, plant & equipment 81,346 28,811 32,788 - 142,945 Geographic information for revenues from the country of origin (shipped from), 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, 2019 2018 2017 ($000) United States $ 405,404 $ 373,735 $ 294,200 Non-United States Hong Kong 319,601 186,978 190,702 China 290,287 253,672 208,595 Germany 155,000 132,161 88,304 Japan 109,670 89,153 76,212 Switzerland 32,770 49,557 50,497 Vietnam 22,322 26,898 22,497 Korea 11,674 9,757 6,584 Singapore 6,868 5,941 3,913 Philippines 4,179 3,909 3,057 United Kingdom 2,712 9,359 8,473 Taiwan 2,005 1,705 718 Belgium 4 4,511 7,503 Italy - 11,458 10,791 Total Non-United States 957,092 785,059 677,846 $ 1,362,496 $ 1,158,794 $ 972,046 Long-Lived Assets June 30, 2019 2018 2017 ($000) United States $ 345,866 $ 309,062 $ 240,029 Non-United States China 108,688 81,175 62,024 United Kingdom 60,369 65,357 396 Switzerland 35,592 37,155 36,795 Germany 14,857 14,876 15,323 Vietnam 11,656 10,042 8,272 Philippines 7,793 6,628 6,115 Hong Kong 5,032 2,818 1,914 Other 1,190 598 704 Total Non-United States 245,177 218,649 131,543 $ 591,043 $ 527,711 $ 371,572 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Fair Value of Financial Instruments | Note 1 5 . 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, 2019, 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 Company has entered into earnout arrangements in conjunction with specified acquisitions, as discussed in Note 3, that provide additional cash earnout opportunities based upon achievement of certain agreed upon financial and operational targets. The fair values of the contingent earnout arrangements and the net put option were measured using valuations based upon other unobservable inputs that are significant to the fair value measurement (Level 3). The fair values of these contingent earnout arrangements and the net put option (discussed in Note 4) were measured using valuations based on other unobservable inputs that are significant to the fair value measurement (Level 3). The Company estimated the fair value of the Notes based on quoted market prices as of the last trading day prior to June 30, 2019; however, the Notes have only a limited trading volume and, as such, this fair value estimate is not necessarily the value at which the Notes could be retired or transferred. The Company concluded that this fair value measurement should be categorized within Level 2. The carrying value of the convertible notes is net of unamortized discount and issuance costs. See Note 9 for details on the Company’s debt facilities. The fair value and carrying value of the convertible notes were as follows at June 30, 2019 ($000): Fair Value Carrying Value Convertible notes $ 365,700 $ 301,141 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, 2019 and 2018 ($000): Fair Value Measurements at June 30, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2019 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 139 $ - $ 139 $ - Contingent earnout arrangements $ 4,397 $ - $ - $ 4,397 Net put option $ 2,024 $ - $ - $ 2,024 Fair Value Measurements at June 30, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 121 $ - $ 121 $ - Liabilities: Contingent earnout arrangements $ 5,405 $ - $ - $ 5,405 Net put option $ 2,024 $ - $ - $ 2,024 The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s level 3 contingent earnout arrangements related to the Company’s acquisitions and the net put option relating to the purchase of the equity investment in November 2017 ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2018 $ 7,429 Activity: Payments (4,524 ) Changes in fair value recorded in other expense (income), net (881 ) Other earnout arrangements 4,397 Balance at June 30, 2019 $ 6,421 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 include both variable and fixed interest rates, non-interest bearing debt and a capital lease obligation and are considered Level 2 among the fair value hierarchy and accordingly their carrying amounts approximate fair value. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 1 6 . 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 value of these contracts in the Company’s financial statements. These contracts had a total notional amount of $17.0 million and $12.0 million at June 30, 2019 and 2018, respectively. As of June 30, 2019, these forward contracts had expiration dates ranging from July 2019 through October 2019, with Japanese Yen denominations individually between 300 million and 645 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 as of June 30, 2019. The change in the fair value of these contracts for the fiscal year ended June 30, 2019, 2018 and 2017 was insignificant. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 1 7 . 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 $4.6 million, $5.0 million, and $4.3 million for the years ended June 30, 2019, 2018 and 2017, respectively. On August 18, 2018, the Company adopted the 2018 Employee Stock Purchase Plan (“2018 Plan”) for full time employees who have completed two years of continuous employment with the Company, and the 2018 Plan was approved by the Company’s shareholders at the Company’s Annual Meeting of Shareholders in November 2018. The employee may purchase the Company’s common stock for the lessor of 90% of the fair market value of the shares (i) on the first trading day of the offering period, or (ii) on the purchase date. Offering periods will run from August through January and from February through July each year. The number of shares which may be bought by an employee during each fiscal year is limited to 15% of the employee’s base pay. The 2018 Plan, limits the number of shares of common stock available for purchase to 2,000,000 shares. As of June 30, 2019, there have been no purchases under the 2018 Plan. Switzerland Defined Benefit Plan The Company maintains 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 years ended June 30, 2019 and 2018 were $3.0 million and $2.7 million, respectively. Expected employer contributions in fiscal year 2020 are $3.0 million. The changes in the funded status of the Swiss Plan during the fiscal years ended June 30, 2019 and 2018 were as follows: Year Ended June 30, 2019 2018 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 62,554 $ 59,518 Service cost 3,629 3,766 Interest cost 528 424 Benefits accumulated, net of benefits paid (103 ) 1,474 Plan amendments - (4,068 ) Actuarial (gain) loss on obligation 6,690 1,606 Participant contributions 1,557 1,415 Currency translation adjustment (1,372 ) (1,581 ) Projected benefit obligation, end of period $ 73,483 $ 62,554 Change in plan assets: Plan assets at fair value, beginning of period 49,034 42,990 Actual return on plan assets 342 1,566 Employer contributions 2,965 2,731 Participant contributions 1,557 1,415 Benefits accumulated, net of benefits paid (103 ) 1,474 Currency translation adjustment (1,076 ) (1,142 ) Plan assets at fair value, end of period $ 52,719 $ 49,034 Amounts recognized in consolidated balance sheets: Other non-current assets: Deferred tax asset $ 4,392 $ 2,859 Other non-current liabilities: Underfunded pension liability 20,764 13,520 Amounts recognized in accumulated other comprehensive income: Pension adjustment $ (11,784 ) $ 2,846 Accumulated benefit obligation, end of period $ 69,682 $ 59,800 Net periodic pension cost associated with the Swiss Plan included the following components: Year Ended June 30, 2019 2018 2017 Service cost $ 3,629 $ 3,766 $ 3,689 Interest cost 528 424 163 Expected return on plan assets 951 849 (742 ) Net actuarial loss and prior service credit 185 203 594 Net periodic pension cost $ 5,293 $ 5,242 $ 3,704 The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2019 and 2018 using the following assumptions: June 30, 2019 2018 Discount rate 0.5 % 0.9 % Salary increase rate 2.0 % 2.0 % The net periodic pension cost for the Swiss Plan was calculated during the fiscal years ended June 30, 2019, 2018, and 2017 using the following assumptions: Year Ended June 30, 2019 2018 2017 Discount rate 0.9 % 0.8 % 0.3 % Salary increase rate 2.0 % 2.0 % 2.0 % Expected return on plan assets 2.0 % 2.0 % 2.0 % 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, 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, which are held and invested by a Swiss insurance company. 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, 2019, the Swiss Plan’s asset allocation was as follows (all of which are categorized as Level 2 in the fair value hierarchy): June 30, 2019 2018 Fixed income investments 12.0 % 12.0 % Equity investments 50.0 % 50.0 % Real estate 28.0 % 31.0 % Cash 7.0 % 4.0 % Other 3.0 % 3.0 % 100.0 % 100.0 % Estimated future benefit payments under the Swiss Plan are estimated to be as follows: Year Ending June 30, ($000) 2020 $ 3,400 2021 2,900 2022 3,000 2023 3,300 2024 5,100 Next five years $ 24,300 |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | Note 1 8 . Other Accrued Liabilities The components of other accrued liabilities were as follows: June 30, 2019 2018 ($000) Contract liabilities $ 10,390 $ 3,384 Warranty reserve 4,478 4,679 Earnout arrangements 1,861 5,405 Other accrued liabilities 33,215 29,511 $ 49,944 $ 42,979 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
Commitments and Contingencies | Note 1 9 . 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 liquidated damage provisions for early termination. The Company does not believe that a significant amount of liquidated damages are reasonably likely to be incurred under these commitments based upon historical experience and current expectations. The Company also has commitments relating to earnout arrangements on its acquisitions of $4.4 million. Total future commitments are as follows: Year Ending June 30, ($000) 2020 $ 32,048 2021 4,964 2022 - 2023 - 2024 - |
Share Repurchase Programs
Share Repurchase Programs | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Share Repurchase Programs | Note 20 . Share Repurchase Programs In August 2017, in conjunction with the Company’s offering and sale of the Notes, the Company’s Board of Directors authorized the Company to purchase up to $50 million of its common stock with a portion of the net proceeds received from the offering and sale of the Notes. The shares that were purchased by the Company pursuant to this authorization were retained as treasury stock and are available for general corporate purposes. The Company purchased 1,414,900 shares of its common stock for approximately $49.9 million pursuant to this authorization in fiscal 2018. In August 2014, the Company’s Board of Directors authorized the Company to purchase up to $50 million of its common stock through a share repurchase program (the “Program”) that calls for shares to be purchased in the open market or in private transactions from time to time. The Program has no expiration and may be suspended or discontinued at any time. Shares purchased by the Company are retained as treasury stock and available for general corporate purposes. During the fiscal year ended June 30, 2019, the Company purchased 50,000 shares of its common stock for $1.6 million under this program. The Company did not repurchase shares pursuant to this Program during the fiscal years ended June 30, 2018 and 2017. As of June 30, 2019, the Company has cumulatively purchased 1,366,587 shares of its common stock pursuant to the Program for approximately $20.7 million. The dollar value of shares as of June 30, 2019 that may yet be purchased under the Program is approximately $29.3 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 2 1 . Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (“AOCI”) by component, net of tax, for the years ended June 30, 2019, 2018, and 2017 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Income AOCI - June 30, 2016 $ (6,185 ) $ (7,832 ) $ (14,017 ) Other comprehensive income (loss) before reclassifications (2,275 ) 1,920 (355 ) Amounts reclassified from AOCI - 594 594 Net current-period other comprehensive income (2,275 ) 2,514 239 AOCI - June 30, 2017 (8,460 ) (5,318 ) (13,778 ) Other comprehensive income (loss) before reclassifications 7,152 2,643 9,795 Amounts reclassified from AOCI - 203 203 Net current-period other comprehensive income 7,152 2,846 9,998 AOCI - June 30, 2018 $ (1,308 ) $ (2,472 ) $ (3,780 ) Other comprehensive income (loss) before reclassifications (14,319 ) (6,307 ) (20,626 ) Amounts reclassified from AOCI - 185 185 Net current-period other comprehensive income (14,319 ) (6,122 ) (20,441 ) AOCI - June 30, 2019 $ (15,627 ) $ (8,594 ) $ (24,221 ) |
Capital Lease
Capital Lease | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Capital Lease | Note 2 2 . Capital Lease During fiscal 2017, the Company’s OptoElectronic Devices subsidiary entered into a capital lease related to a building in Warren, New Jersey. The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): Fiscal Year Ending June 30, Amount 2020 $ 2,355 2021 2,419 2022 2,486 2023 2,554 2024 2,624 Thereafter 22,116 Total minimum lease payments $ 34,554 Less amount representing interest 10,193 Present value of capitalized payments $ 24,361 The current and long-term portion of the capital lease obligation was recorded in other accrued liabilities and other liabilities, respectively, in the Company’s Consolidated Balance Sheets as of June 30, 2019 and 2018. The present value of the minimum capital lease payments at inception was $25.0 million recorded in Property, Plant & Equipment, net, in the Company’s Consolidated Balance Sheet, with associated depreciation being recorded over the 15-year life of the lease. During the fiscal year ended June 30, 2019, the Company recorded $1.7 million of depreciation expense associated with the capital leased asset. The accumulated depreciation on the capital lease asset was $4.2 million as June 30, 2019. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (unaudited) Fiscal Year 2019 September 30, December 31, March 31, June 30, Quarter Ended 2018 2018 2019 2019 ($000, except per share) 2019 Net revenues $ 314,433 $ 342,839 $ 342,496 $ 362,728 Cost of goods sold 190,526 211,333 215,212 224,076 Internal research and development 33,171 33,764 36,026 36,202 Selling, general and administrative 53,523 58,136 60,128 61,731 Interest expense 5,584 5,580 5,647 5,606 Other expense (income) - net (713 ) (701 ) (1,532 ) 384 Earnings before income taxes 32,342 34,727 27,015 34,729 Income taxes 6,193 6,025 2,377 6,701 Net Earnings $ 26,149 $ 28,702 $ 24,638 $ 28,028 Basic earnings per share $ 0.41 $ 0.45 $ 0.39 $ 0.44 Diluted earnings per share $ 0.40 $ 0.44 $ 0.38 $ 0.43 Fiscal Year 2018 September 30, December 31, March 31, June 30, Quarter Ended 2017 2017 2018 2018 ($000, except per share) 2018 Net revenues $ 261,503 $ 281,470 $ 294,746 $ 321,075 Cost of goods sold 155,530 172,075 176,521 192,465 Internal research and development 25,575 27,779 30,625 32,896 Selling, general and administrative 50,624 49,130 53,121 55,690 Interest expense 3,645 4,644 5,014 5,049 Other expense (income) - net (770 ) (2,026 ) (1,755 ) 768 Earnings before income taxes 26,899 29,868 31,220 34,207 Income taxes 5,758 20,272 1,122 7,040 Net Earnings $ 21,141 $ 9,596 $ 30,098 $ 27,167 Basic earnings per share $ 0.34 $ 0.15 $ 0.48 $ 0.44 Diluted earnings per share $ 0.32 $ 0.15 $ 0.45 $ 0.42 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II II-VI INCORPORATED AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED JUNE 30, 2019, 2018, AND 2017 (IN THOUSANDS OF DOLLARS) Balance at Charged Charged Deduction Balance Beginning to to Other from at End of Year Expense Accounts Reserves of Year YEAR ENDED JUNE 30, 2019: Allowance for doubtful accounts $ 837 $ 548 $ - $ (92 ) (1) $ 1,293 Warranty reserves $ 4,679 $ 4,185 $ - $ (4,386 ) $ 4,478 Deferred tax asset valuation allowance $ 21,797 $ (1,607 ) $ - $ - $ 20,190 YEAR ENDED JUNE 30, 2018: Allowance for doubtful accounts $ 1,314 $ (129 ) $ - $ (348 ) (1) $ 837 Warranty reserves $ 4,546 $ 3,821 $ - $ (3,688 ) $ 4,679 Deferred tax asset valuation allowance $ 42,562 $ (4,602 ) $ (16,163 ) (2) $ - $ 21,797 YEAR ENDED JUNE 30, 2017: Allowance for doubtful accounts $ 2,016 $ (134 ) $ - $ (568 ) (1) $ 1,314 Warranty reserves $ 3,908 $ 4,850 $ - $ (4,212 ) $ 4,546 Deferred tax asset valuation allowance $ 42,641 $ (79 ) $ - $ - $ 42,562 (1) Primarily relates to write-offs of accounts receivable. (2) Primarily relates to the Company’s deferred taxes on the conversion feature of the convertible debt. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
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 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, the United Kingdom, South Korea and Taiwan. |
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. |
Inventories | Inventories. Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers, if applicable, other factors, including known trends, market conditions, currency exchange rates and other such issues. The Company generally records a reduction to the carrying value of inventory as a charge against earnings for all products on hand more than 12 to 24 months, depending on the products that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional charge may be recorded for product on hand that is in excess of product sold to customers over the same periods noted above. The cumulative adjustments to the carrying value of inventory totaled $23.5 million and $22.5 million at June 30, 2019 and 2018, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair 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 three 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 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/or a market analysis to determine the fair value of its reporting units. A number of 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. Goodwill impairment is now measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill prior to completing the quantitative assessment 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 quantitative assessment. Otherwise, the Company will forego the quantitative assessment and does not need to perform any further testing. As of April 1 of fiscal years 2019 and 2018, the Company completed its annual impairment tests of its reporting units using the quantitative assessment. Based on the results of these analyses the Company’s goodwill was not impaired. |
Intangibles | Intangibles. Intangible assets are initially recorded at their cost or fair 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 five to 20 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1 st |
Investments in Other Entities | Investments in Other Entities. In the normal course of business, the Company enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by the Company in business entities, including general or limited partnerships, contractual ventures, or other forms of equity participation. The Company determines whether such investments involve a variable interest entity (“VIE”) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if the Company is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When the Company is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a noncontrolling interest. The Company generally accounts for investments it makes in VIEs in which it has determined that it does not have a controlling financial interest but has significant influence over and holds at least a 20% ownership interest using the equity method. Any such investment not meeting the parameters to be accounted under the equity method would be accounted for under ASU 2016-01. If an entity fails to meet the characteristics of a VIE, management then evaluates such entity under the voting model. Under the voting model, management consolidates the entity if they determine that the Company, directly or indirectly, has greater than 50% of the voting shares and determines that other equity holders do not have substantive participating rights. |
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. Our customers may discover defects in our products after the products have been fully deployed and operated under peak stress conditions. If we are unable to correct defects or other problems, we could experience, among other things, loss of customers, increased costs of product returns and warranty expenses, damage to our brand reputation, failure to attract new customers or achieve market acceptance, diversion of development and engineering resources, or legal action by our customers. The Company had no material loss contingency liabilities at June 30, 2019 related to commitments and contingencies. |
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. Revenue is recognized under ASC 606 when or as obligations under the terms of a contract with the Company’s customer have been satisfied and control has transferred to the customer. The Company has elected to exclude all taxes from the measurement of the transaction price. For contracts with commercial customers, which comprise the majority of the Company’s performance obligations, ownership of the goods and associated revenue are transferred to customers at a point in time, generally upon shipment of a product (“Direct Ship Parts”) to the customer or receipt of the product by the customer and without significant judgments. The majority of contracts typically require payment within 30 to 60 days after transfer of ownership to the customer. Contracts with the United States (“U.S.”) government through its prime contractors are typically for products or services with no alternative future use to the Company with an enforceable right to payment for performance completed to date, whereas commercial contracts typically have alternative use. Customized products with no alternative future use to the Company with an enforceable right to payment for performance completed to date are recorded over time utilizing the output method of units delivered. The Company considers this to be a faithful depiction of the transfer to the customer of revenue over time due to short cycle time and immaterial work-in-process balances. The majority of contracts typically require payment within 30 to 60 days after transfer of ownership to the customer. Service revenue includes repairs, non-recurring engineering, tolling arrangements and installation. Repairs, tolling and installation activities are usually completed in a short period of time (normally less than one month) and therefore recorded at a point in time when the services are completed. Non-recurring engineering arrangements are typically recognized over time under the time and material practical expedient, as the entity has a right to consideration from a customer, in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date. The majority of contracts typically require payment within 60 days. The Company’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. Under ASC 606, the Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administration expenses. The Company has elected to recognize the costs for freight and shipping when control over products has transferred to the customer as an expense in cost of sales. The Company monitors and tracks the amount of product returns and reduces revenue at the time of shipment for the estimated amount of future returns, based on historical experience. The Company makes estimates evaluating its allowance for doubtful accounts. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon its historical experience and any specific customer collection issues that it has identified. The Company offers an assurance-type limited warranty that products will be free from defects in materials and workmanship. The warranty is typically one year or the industry standard in length and is limited to either (1) the replacement or repair of the product or (2) a credit against future purchases. The products are not sold with a right of return. The Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year. |
Shipping and Handling Costs | |
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. Share-based compensation arrangements require 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. |
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 (loss) income is a component of shareholders’ equity and consists of accumulated foreign currency translations adjustments and pension adjustments. |
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. |
Operating Leases | Operating The Company classifies operating leases 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 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. |
Capital Leases | Capital The Company accounts for capital leases at the lesser of the estimated fair market value of the leased property or the net present value of the aggregate future minimum lease payments. The current and long-term portion of the capital lease obligation is recorded in other accrued liabilities and other liabilities, respectively, in the Consolidated Balance Sheet. Capital lease assets are included in property, plant & equipment and are generally depreciated over the term of the lease. Interest expense on capital leases are included in interest expense in the Consolidated Statements of Earnings. |
Recently Issued Financial Accounting Standards | Recently Issued Financial Accounting Standards Revenue Recognition Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on July 1, 2018 using the modified retrospective method of adoption applied to all contracts at that date. Adoption of the ASU did not require an adjustment to the opening balance of equity. The standard did not have a significant effect on its results of operations, liquidity or financial position in fiscal year 2019. The Company implemented processes and controls to ensure new contracts are reviewed for the appropriate accounting treatment and to generate the disclosures required under the new standard. For the disclosures required by this ASU, see Note 5, Revenue from Contracts with Customers. Other Adopted Pronouncements In August 2018, the FASB issued ASU 2018-14, Disclosure Framework – Changes to the disclosure framework requirements for Defined Benefit Plans. This update defined a narrower set of disclosures required on the basis of an evaluation of whether the expected benefits of entities providing the information justify the expected costs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the disclosure requirements for fair value measurements. This update defined a narrower set of disclosures required on the basis of an evaluation of whether the expected benefits of entities providing the information justify the expected costs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, Compensation (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update affects employers’ presentation of defined benefit retirement plan costs. With the adoption of this standard, the Company restated the prior periods ending June 30, 2018, 2017, and 2016. These restatements did not have a material effect on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This update changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This update requires that when intra-entity asset transfers occur, the entity must recognize tax effects in the period in which the transfer occurs. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The guidance clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flow. The adoption of this standard did not have a material effect on the Company’s Consolidated Financial Statements. Pronouncements Currently Under Evaluation In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. The new standard will become effective for the Company’s fiscal year 2020, which begins on July 1, 2019. During fiscal year 2019, we conducted a survey to identify all leases across the organization (including embedded leases). We identified that a majority of our leases are categorized into one of three categories: office equipment, real estate and vehicles. We are finalizing the accumulation of lease data, including new leases entered into at the end of fiscal year 2019, and preparing the final transition adjustment calculations. We estimate that total assets and total liabilities will increase within the range of $90 million and $120 million on July 1, 2019 when the ASU is adopted. In July 2018, the FASB issued targeted improvements to ASU 2016-02 in ASU 2018-11. This update provides entities with an optional transition method, which permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We expect to use this new transition approach and the comparative periods presented in our fiscal 2020 consolidated financial statements will continue to be reported in accordance with ASC 840, Leases. We anticipate that we will elect the package of practical expedients allowed in the standard, which among other things, allows us to carry forward our historical lease classification. We also anticipate that we will make an accounting policy election to use the practical expedient allowed in the standard to not separate lease and non-lease components when calculating the lease liability under Topic 842. In July 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which among other things, requires the measurement of all expected credit losses of financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward looking information to better inform their credit loss estimates. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company is in the process of evaluating the impact of the pronouncement. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
CoAdna Holdings, Inc. | |
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 5,684 Inventories 6,189 Prepaid and other assets 2,454 Property, plant & equipment 3,181 Intangible assets 16,072 Goodwill 24,898 Total assets acquired $ 58,478 Liabilities Accounts payable $ 4,006 Other accrued liabilities 4,103 Long term accrued income taxes 6,656 Deferred tax liabilities 897 Total liabilities assumed 15,662 Net assets acquired $ 42,816 |
Redstone Aerospace Corporation | |
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table presents a final allocation of the purchase price of the assets acquired and liabilities assumed at the date of acquisition ($000): Assets Accounts receivable $ 1,606 Other Assets 215 Property, plant & equipment 350 Intangible assets 9,100 Goodwill 21,596 Total assets acquired $ 32,867 Liabilities Non-Interest bearing liabilities $ 980 Deferred tax liabilities 2,152 Total liabilities assumed 3,132 Net assets acquired $ 29,735 |
Purchase Price at the Date of Acquisition | The following table presents the final purchase price at the date of acquisition ($000): Net cash paid at acquisition $ 27,959 Fair value of cash earnout arrangement 1,776 Purchase price $ 29,735 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Nonconsolidated Investment | |
Schedule of Equity in Nonconsolidated Investment | The following table summarizes the Company's equity in this nonconsolidated investment: Interest Ownership % as of Equity as of Location Type June 30, 2019 June 30, 2019 ($000) USA Equity Investment 93.8% $ 57,645 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disaggregation Of Revenue [Abstract] | |
Summary of Disaggregated Revenue by Market and Product | The following table summarizes disaggregated revenue by market and product for the year ended June 30, 2019 ($000): Twelve Months Ended June 30, 2019 II-VI II-VI Laser II-VI Performance Solutions Photonics Products Total Commercial Direct Ship Parts $ 382,066 $ 631,407 $ 181,036 $ 1,194,509 Services 3,738 7,482 10,426 21,646 U.S. Government Direct Ship Parts $ 10,751 $ - $ 119,562 $ 130,313 Services 18 - 16,010 16,028 Total Revenues $ 396,573 $ 638,889 $ 327,034 $ 1,362,496 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows: June 30, 2019 2018 ($000) Raw materials $ 119,917 $ 97,502 Work in progress 101,091 83,002 Finished goods 75,274 67,764 $ 296,282 $ 248,268 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant & Equipment | Property, plant & equipment consist of the following: June 30, 2019 2018 ($000) Land and land improvements $ 9,001 $ 9,072 Buildings and improvements 249,238 216,507 Machinery and equipment 739,330 633,934 Construction in progress 71,425 88,350 1,068,994 947,863 Less accumulated depreciation (486,204 ) (422,973 ) $ 582,790 $ 524,890 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 Goodwill acquired - 26,069 25,569 51,638 Foreign currency translation (856 ) (1,682 ) - (2,538 ) Balance-end of period $ 97,881 $ 134,057 $ 87,840 $ 319,778 Year Ended June 30, 2018 II-VI Laser II-VI II- VI Performance Solutions Photonics Products Total Balance-beginning of period $ 79,527 $ 108,544 $ 62,271 $ 250,342 Goodwill acquired 18,956 - - 18,956 Goodwill adjustment for prior year acquisition - IPI - 407 - 407 Foreign currency translation 254 719 - 973 Balance-end of period $ 98,737 $ 109,670 $ 62,271 $ 270,678 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill | The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill as of June 30, 2019 and 2018 were as follows ($000): June 30, 2019 June 30, 2018 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Technology and Patents $ 91,637 $ (39,679 ) $ 51,958 $ 66,812 $ (32,979 ) $ 33,833 Trade Names 15,759 (1,601 ) 14,158 15,882 (1,471 ) 14,411 Customer Lists 132,872 (59,664 ) 73,208 127,603 (50,792 ) 76,811 Other 1,572 (1,572 ) - 1,573 (1,559 ) 14 Total $ 241,840 $ (102,516 ) $ 139,324 $ 211,870 $ (86,801 ) $ 125,069 |
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, 2020 $ 16,700 2021 16,300 2022 14,800 2023 14,400 2024 14,000 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of debt were as follows ($000): June 30, 2019 2018 0.25% Convertible senior notes $ 345,000 $ 345,000 Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount (43,859 ) (56,409 ) Term loan, interest at LIBOR, as defined, plus 1.75% 45,000 65,000 Line of credit, interest at LIBOR, as defined, plus 1.75% 115,000 80,000 Amended credit facility unamortized debt issuance costs (761 ) (1,126 ) Yen denominated line of credit, interest at LIBOR, as defined, plus 1.75% 2,783 2,714 Note payable assumed in IPI acquisition 3,834 3,834 Total debt 466,997 439,013 Current portion of long-term debt (23,834 ) (20,000 ) Long-term debt, less current portion $ 443,163 $ 419,013 |
Summary of Total Interest Expense Recognized | The following table sets forth total interest expense recognized related to the Notes for the fiscal year ended June 30, 2019 (representing an effective interest rate of 4.5%): Year ended June 30, 2019 2018 0.25% contractual coupon $ 874 $ 731 Amortization of debt discount and debt issuance costs including initial purchaser discount 12,550 10,058 Interest expense $ 13,424 $ 10,789 |
Remaining Annual Principal Payments of Credit Facilities and Notes Payable | Remaining annual principal payments under the Company’s existing credit facilities and notes payable as of June 30, 2019 were as follows ($000): U.S. Dollar Term Yen Line Line of Note Convertibles Year Ended Loan of Credit Credit Payable Notes Total June 30, 2020 $ 20,000 $ - $ - $ 3,834 $ - $ 23,834 June 30, 2021 20,000 2,783 - - - $ 22,783 June 30, 2022 5,000 - 115,000 - - $ 120,000 June 30, 2023 - - - - 345,000 $ 345,000 June 30, 2024 - - - - - $ - Total $ 45,000 $ 2,783 $ 115,000 $ 3,834 $ 345,000 $ 511,617 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings (Losses) Before Income Taxes | The components of earnings (losses) before income taxes were as follows: Year Ended June 30, 2019 2018 2017 ($000) U.S. loss $ (34,241 ) $ (15,207 ) $ (6,944 ) Non-U.S. income 163,054 137,401 125,732 Earnings before income taxes $ 128,813 $ 122,194 $ 118,788 |
Components of Income Tax Expense | The components of income tax expense were as follows: Year Ended June 30, 2019 2018 2017 ($000) Current: Federal $ 1,755 $ 699 $ 2,133 State 472 401 253 Foreign 29,531 32,147 22,312 Total Current $ 31,758 $ 33,247 $ 24,698 Deferred: Federal $ (3,764 ) $ (3,064 ) $ (6,963 ) State (2,010 ) 1,615 (1,251 ) Foreign (4,688 ) 2,394 7,030 Total Deferred $ (10,462 ) $ 945 $ (1,184 ) Total Income Tax Expense $ 21,296 $ 34,192 $ 23,514 |
Schedule of Principal Items Comprising Deferred Income Taxes | Principal items comprising deferred income taxes were as follows: June 30, 2019 2018 ($000) Deferred income tax assets Inventory capitalization $ 5,687 $ 5,267 Non-deductible accruals 1,251 1,125 Accrued employee benefits 9,797 7,614 Net-operating loss and credit carryforwards 54,192 48,738 Share-based compensation expense 7,192 7,925 Other 5,488 3,242 Valuation allowances (16,558 ) (21,797 ) Total deferred income tax assets $ 67,049 $ 52,114 Deferred income tax liabilities Tax over book accumulated depreciation $ (28,184 ) $ (24,174 ) Intangible assets (28,202 ) (24,649 ) Tax on unremitted earnings (11,662 ) (13,090 ) Convertible debt (8,662 ) (11,376 ) Other (5,728 ) (4,020 ) Total deferred income tax liabilities $ (82,438 ) $ (77,309 ) Net deferred income taxes $ (15,389 ) $ (25,195 ) |
Schedule of Reconciliation of Income Tax Expense at Statutory U.S. Federal Rate to Reported Income Tax Expense | The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense is as follows: Year Ended June 30, 2019 % 2018 % 2017 % ($000) Taxes at statutory rate 27,051 21 $ 34,284 28 $ 41,576 35 Increase (decrease) in taxes resulting from: State income taxes-net of federal benefit (1,212 ) (1 ) 1,426 1 (641 ) - Taxes on non U.S. earnings (5,857 ) (5 ) (16,058 ) (13 ) (12,907 ) (11 ) Valuation allowance (6,703 ) (5 ) (6,008 ) (5 ) (806 ) (1 ) Research and manufacturing incentive deductions and credits (11,756 ) (9 ) (7,024 ) (6 ) (5,681 ) (5 ) Stock compensation (1,914 ) (1 ) (4,103 ) (3 ) 1,770 2 Repatriation tax 14,108 11 36,777 30 - - GILTI and FDII 6,437 5 - - - - Impact of U.S. tax rate change on deferred balances - - (4,209 ) (3 ) - - Other 1,142 1 (893 ) (1 ) 203 - $ 21,296 17 $ 34,192 28 $ 23,514 20 |
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, 2019: Type Amount Expiration Date ($000) Tax credit carryforwards: Federal research and development credits $ 20,084 June 2029-June 2039 Foreign tax credits 1,088 June 2025-June 2027 State tax credits 12,449 June 2020-June 2039 State tax credits (indefinite) 448 Indefinite Operating loss carryforwards: Loss carryforwards - federal $ 59,749 June 2020-June 2036 Loss carryforwards - state 52,762 June 2020-June 2039 Loss carryforwards - foreign 8,467 June 2021-June 2027 Loss carryforwards - foreign (indefinite) 8,502 Indefinite |
Schedule of Changes in Liability for Unrecognized Tax Benefits | Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2019, 2018 and 2017 were as follows: 2019 2018 2017 ($000) Beginning balance $ 9,892 $ 7,577 $ 5,559 Increases in current year tax positions 191 2,536 895 Increases in prior year tax positions 376 224 2,605 Decreases in prior year tax positions - (9 ) - Acquired business 6,036 - - Settlements - - (1,143 ) Expiration of statute of limitations (4,975 ) (436 ) (339 ) Ending balance $ 11,520 $ 9,892 $ 7,577 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The following table sets forth the computation of earnings per share for the periods indicated. Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share has been computed using the weighted average number of common shares outstanding during the period plus dilutive potential shares of common stock from (1) stock options, performance and restricted shares (under the treasury stock method) and (2) convertible debt (under the If-Converted method) outstanding during the period. The Company’s convertible debt calculated under the If-Converted method was antidilutive for the fiscal years 2019 and 2018 and was excluded from the calculation of earnings per share. Year Ended June 30, 2019 2018 2017 ($000 except per share) Net earnings $ 107,517 $ 88,002 $ 95,274 Divided by: Weighted average shares 63,584 62,499 62,576 Basic earnings per common share $ 1.69 $ 1.41 $ 1.52 Net earnings $ 107,517 $ 88,002 $ 95,274 Divided by: Weighted average shares 63,584 62,499 62,576 Dilutive effect of common stock equivalents 2,220 2,634 1,931 Diluted weighted average common shares 65,804 65,133 64,507 Diluted earnings per common share $ 1.63 $ 1.35 $ 1.48 |
Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share | The following table presents potential shares of common stock excluded from the calculation of diluted net income per share, as their effect would have been antidilutive ($000): Year Ended June 30, 2019 2018 2017 Stock options and restricted shares 115 135 140 0.25% Convertible Senior Notes due 2022 7,331 7,331 - Total anti-dilutive shares 7,446 7,466 140 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating Lease Future Rental Commitments | Future rental commitments applicable to the operating leases at June 30, 2019 are as follows: Year Ending June 30, ($000) 2020 $ 23,000 2021 17,700 2022 14,300 2023 11,200 2024 9,700 Thereafter 44,000 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019, 2018 and 2017 is as follows ($000): Year Ended June 30, 2019 2018 2017 Stock Options and Cash-Based Stock Appreciation Rights $ 6,801 $ 6,605 $ 5,611 Restricted Share Awards, Restricted Share Units, and Cash-Based Restricted Share Units 9,242 7,850 6,799 Performance Share Awards and Cash Based Performance Share Unit Awards 8,920 5,221 3,626 $ 24,963 $ 19,676 $ 16,036 |
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, 2019, 2018 and 2017, the weighted-average fair value of options granted under the stock option plan was $20.66, $14.23 and $8.88, respectively, per option using the following assumptions: Year Ended June 30, 2019 2018 2017 Risk-free interest rate 2.80 % 2.00 % 1.43 % Expected volatility 37 % 37 % 37 % Expected life of options 6.96 years 6.43 years 6.28 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, 2019 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, 2018 3,928,708 $ 20.07 205,448 $ 22.56 Granted 412,940 $ 47.61 48,305 $ 48.56 Exercised (522,173 ) $ 16.66 (21,562 ) $ 20.45 Forfeited and Expired (58,192 ) $ 26.29 (4,695 ) $ 31.43 Outstanding - June 30, 2019 3,761,283 $ 23.47 227,496 $ 28.09 Exercisable - June 30, 2019 2,348,812 $ 18.62 89,827 $ 27.50 |
Share-Based Compensation Outstanding and Exercisable Options | Outstanding and exercisable stock options at June 30, 2019 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 $12.07 - $16.97 825,579 3.52 $ 14.41 720,059 3.28 $ 14.47 $16.98 - $18.06 799,765 4.52 $ 17.72 591,237 3.95 $ 17.68 $18.07 - $21.65 734,900 4.04 $ 19.24 688,310 3.87 $ 19.20 $21.66 - $33.75 679,449 7.15 $ 22.25 309,016 7.02 $ 22.01 $33.76 - $49.90 949,096 8.62 $ 41.48 130,017 8.08 $ 35.82 3,988,789 5.65 $ 23.74 2,438,639 4.34 $ 18.68 |
Restricted Share, Restricted Share Unit and Cash-Based Restricted Share Unit Activity | Restricted share, restricted share unit, and cash-based restricted share unit activity during the fiscal year ended June 30, 2019, was as follows: Restricted Share Awards Restricted Share Units Cash-Based Restricted Share Units Number of Weighted Average Number of Weighted Average Number of Weighted Average Shares Grant Date Fair Value Shares Grant Date Fair Value Units Grant Date Fair Value Nonvested - June 30, 2018 595,519 $ 24.58 - $ - 117,326 $ 25.57 Granted - $ - 177,609 $ 47.16 30,506 $ 49.05 Vested (401,341 ) $ 21.96 - $ - (68,846 ) $ 22.67 Forfeited (10,749 ) $ 27.15 (1,872 ) $ 49.90 (1,344 ) $ 35.59 Nonvested - June 30, 2019 183,429 $ 30.30 175,737 $ 47.13 77,642 $ 37.19 |
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, 2019, 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, 2018 382,270 $ 24.57 17,279 $ 25.71 Granted 218,583 $ 38.00 11,943 $ 44.00 Vested (100,481 ) $ 17.84 (4,398 ) $ 17.84 Forfeited (86,721 ) $ 22.24 (600 ) $ 38.77 Nonvested - June 30, 2019 413,651 $ 36.80 24,224 $ 37.47 |
Segment and Geographic Report_2
Segment and Geographic Reporting (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 Eliminations Solutions Photonics Products & Other Total ($000) 2019 Revenues $ 396,573 $ 638,889 $ 327,034 $ - $ 1,362,496 Inter-segment revenues 91,507 10,745 20,928 (123,180 ) - Operating income 40,261 81,898 42,153 (15,643 ) 148,668 Interest expense - - - - (22,417 ) Other income, net - - - - 2,562 Income taxes - - - - (21,296 ) Net earnings - - - - 107,517 Depreciation and amortization 44,529 26,273 21,563 - 92,365 Expenditures for property, plant & equipment 43,936 44,851 39,963 - 128,750 Segment assets 716,788 681,610 555,375 - 1,953,773 Goodwill 97,881 134,057 87,840 - 319,778 II-VI II-VI Laser II-VI Performance Eliminations Solutions Photonics Products & Other Total ($000) 2018 Revenues $ 405,940 $ 486,485 $ 266,369 $ - $ 1,158,794 Inter-segment revenues 34,590 11,180 26,262 (72,032 ) - Operating income 40,119 63,152 33,492 - 136,763 Interest expense - - - - (18,352 ) Other income, net - - - - 3,783 Income taxes - - - - (34,192 ) Net earnings - - - - 88,002 Depreciation and amortization 38,004 23,242 19,524 - 80,770 Expenditures for property, plant & equipment 80,776 36,122 44,425 - 161,323 Segment assets 740,020 554,574 467,067 - 1,761,661 Goodwill 98,737 109,670 62,271 - 270,678 II-VI II-VI Laser II-VI Performance Eliminations Solutions Photonics Products & Other Total ($000) 2017 Revenues $ 317,495 $ 440,361 $ 214,190 $ - $ 972,046 Inter-segment revenues 33,669 8,003 10,189 (51,861 ) - Operating income 27,459 66,462 21,635 - 115,556 Interest expense - - - - (6,809 ) Other income, net - - - - 10,041 Income taxes - - - - (23,514 ) Net earnings - - - - 95,274 Depreciation and amortization 24,684 21,612 17,341 - 63,637 Expenditures for property, plant & equipment 81,346 28,811 32,788 - 142,945 |
Geographic Information for Revenues from Country of Origin (Shipped from), and Long-Lived Assets from Country of Origin | Geographic information for revenues from the country of origin (shipped from), 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, 2019 2018 2017 ($000) United States $ 405,404 $ 373,735 $ 294,200 Non-United States Hong Kong 319,601 186,978 190,702 China 290,287 253,672 208,595 Germany 155,000 132,161 88,304 Japan 109,670 89,153 76,212 Switzerland 32,770 49,557 50,497 Vietnam 22,322 26,898 22,497 Korea 11,674 9,757 6,584 Singapore 6,868 5,941 3,913 Philippines 4,179 3,909 3,057 United Kingdom 2,712 9,359 8,473 Taiwan 2,005 1,705 718 Belgium 4 4,511 7,503 Italy - 11,458 10,791 Total Non-United States 957,092 785,059 677,846 $ 1,362,496 $ 1,158,794 $ 972,046 Long-Lived Assets June 30, 2019 2018 2017 ($000) United States $ 345,866 $ 309,062 $ 240,029 Non-United States China 108,688 81,175 62,024 United Kingdom 60,369 65,357 396 Switzerland 35,592 37,155 36,795 Germany 14,857 14,876 15,323 Vietnam 11,656 10,042 8,272 Philippines 7,793 6,628 6,115 Hong Kong 5,032 2,818 1,914 Other 1,190 598 704 Total Non-United States 245,177 218,649 131,543 $ 591,043 $ 527,711 $ 371,572 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Fair Value and Carrying Value of Convertible Notes | The fair value and carrying value of the convertible notes were as follows at June 30, 2019 ($000): Fair Value Carrying Value Convertible notes $ 365,700 $ 301,141 |
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, 2019 and 2018 ($000): Fair Value Measurements at June 30, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2019 (Level 1) (Level 2) (Level 3) Liabilities: Foreign currency forward contracts $ 139 $ - $ 139 $ - Contingent earnout arrangements $ 4,397 $ - $ - $ 4,397 Net put option $ 2,024 $ - $ - $ 2,024 Fair Value Measurements at June 30, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Assets: Foreign currency forward contracts $ 121 $ - $ 121 $ - Liabilities: Contingent earnout arrangements $ 5,405 $ - $ - $ 5,405 Net put option $ 2,024 $ - $ - $ 2,024 |
Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangements Related to Company's Acquisitions | The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s level 3 contingent earnout arrangements related to the Company’s acquisitions and the net put option relating to the purchase of the equity investment in November 2017 ($000): Significant Unobservable Inputs (Level 3) Balance at July 1, 2018 $ 7,429 Activity: Payments (4,524 ) Changes in fair value recorded in other expense (income), net (881 ) Other earnout arrangements 4,397 Balance at June 30, 2019 $ 6,421 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations and Plan Assets | The changes in the funded status of the Swiss Plan during the fiscal years ended June 30, 2019 and 2018 were as follows: Year Ended June 30, 2019 2018 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 62,554 $ 59,518 Service cost 3,629 3,766 Interest cost 528 424 Benefits accumulated, net of benefits paid (103 ) 1,474 Plan amendments - (4,068 ) Actuarial (gain) loss on obligation 6,690 1,606 Participant contributions 1,557 1,415 Currency translation adjustment (1,372 ) (1,581 ) Projected benefit obligation, end of period $ 73,483 $ 62,554 Change in plan assets: Plan assets at fair value, beginning of period 49,034 42,990 Actual return on plan assets 342 1,566 Employer contributions 2,965 2,731 Participant contributions 1,557 1,415 Benefits accumulated, net of benefits paid (103 ) 1,474 Currency translation adjustment (1,076 ) (1,142 ) Plan assets at fair value, end of period $ 52,719 $ 49,034 Amounts recognized in consolidated balance sheets: Other non-current assets: Deferred tax asset $ 4,392 $ 2,859 Other non-current liabilities: Underfunded pension liability 20,764 13,520 Amounts recognized in accumulated other comprehensive income: Pension adjustment $ (11,784 ) $ 2,846 Accumulated benefit obligation, end of period $ 69,682 $ 59,800 |
Schedule of Net Periodic Pension Costs | Net periodic pension cost associated with the Swiss Plan included the following components: Year Ended June 30, 2019 2018 2017 Service cost $ 3,629 $ 3,766 $ 3,689 Interest cost 528 424 163 Expected return on plan assets 951 849 (742 ) Net actuarial loss and prior service credit 185 203 594 Net periodic pension cost $ 5,293 $ 5,242 $ 3,704 |
Schedule of Projected and Accumulated Benefit Obligations Rates | The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2019 and 2018 using the following assumptions: June 30, 2019 2018 Discount rate 0.5 % 0.9 % Salary increase rate 2.0 % 2.0 % |
Schedule of Assumptions Used in Calculation of Net Periodic Pension Cost | The net periodic pension cost for the Swiss Plan was calculated during the fiscal years ended June 30, 2019, 2018, and 2017 using the following assumptions: Year Ended June 30, 2019 2018 2017 Discount rate 0.9 % 0.8 % 0.3 % Salary increase rate 2.0 % 2.0 % 2.0 % Expected return on plan assets 2.0 % 2.0 % 2.0 % |
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, 2019, the Swiss Plan’s asset allocation was as follows (all of which are categorized as Level 2 in the fair value hierarchy): June 30, 2019 2018 Fixed income investments 12.0 % 12.0 % Equity investments 50.0 % 50.0 % Real estate 28.0 % 31.0 % Cash 7.0 % 4.0 % Other 3.0 % 3.0 % 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) 2020 $ 3,400 2021 2,900 2022 3,000 2023 3,300 2024 5,100 Next five years $ 24,300 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Components of Other Accrued Liabilities | The components of other accrued liabilities were as follows: June 30, 2019 2018 ($000) Contract liabilities $ 10,390 $ 3,384 Warranty reserve 4,478 4,679 Earnout arrangements 1,861 5,405 Other accrued liabilities 33,215 29,511 $ 49,944 $ 42,979 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
Schedule of Future Commitments | Total future commitments are as follows: Year Ending June 30, ($000) 2020 $ 32,048 2021 4,964 2022 - 2023 - 2024 - |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019, 2018, and 2017 were as follows ($000): Foreign Total Currency Defined Accumulated Other Translation Benefit Comprehensive Adjustment Pension Plan Income AOCI - June 30, 2016 $ (6,185 ) $ (7,832 ) $ (14,017 ) Other comprehensive income (loss) before reclassifications (2,275 ) 1,920 (355 ) Amounts reclassified from AOCI - 594 594 Net current-period other comprehensive income (2,275 ) 2,514 239 AOCI - June 30, 2017 (8,460 ) (5,318 ) (13,778 ) Other comprehensive income (loss) before reclassifications 7,152 2,643 9,795 Amounts reclassified from AOCI - 203 203 Net current-period other comprehensive income 7,152 2,846 9,998 AOCI - June 30, 2018 $ (1,308 ) $ (2,472 ) $ (3,780 ) Other comprehensive income (loss) before reclassifications (14,319 ) (6,307 ) (20,626 ) Amounts reclassified from AOCI - 185 185 Net current-period other comprehensive income (14,319 ) (6,122 ) (20,441 ) AOCI - June 30, 2019 $ (15,627 ) $ (8,594 ) $ (24,221 ) |
Capital Lease (Tables)
Capital Lease (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease | The following table shows the future minimum lease payments due under the non-cancelable capital lease ($000): Fiscal Year Ending June 30, Amount 2020 $ 2,355 2021 2,419 2022 2,486 2023 2,554 2024 2,624 Thereafter 22,116 Total minimum lease payments $ 34,554 Less amount representing interest 10,193 Present value of capitalized payments $ 24,361 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Fiscal Year 2019 September 30, December 31, March 31, June 30, Quarter Ended 2018 2018 2019 2019 ($000, except per share) 2019 Net revenues $ 314,433 $ 342,839 $ 342,496 $ 362,728 Cost of goods sold 190,526 211,333 215,212 224,076 Internal research and development 33,171 33,764 36,026 36,202 Selling, general and administrative 53,523 58,136 60,128 61,731 Interest expense 5,584 5,580 5,647 5,606 Other expense (income) - net (713 ) (701 ) (1,532 ) 384 Earnings before income taxes 32,342 34,727 27,015 34,729 Income taxes 6,193 6,025 2,377 6,701 Net Earnings $ 26,149 $ 28,702 $ 24,638 $ 28,028 Basic earnings per share $ 0.41 $ 0.45 $ 0.39 $ 0.44 Diluted earnings per share $ 0.40 $ 0.44 $ 0.38 $ 0.43 Fiscal Year 2018 September 30, December 31, March 31, June 30, Quarter Ended 2017 2017 2018 2018 ($000, except per share) 2018 Net revenues $ 261,503 $ 281,470 $ 294,746 $ 321,075 Cost of goods sold 155,530 172,075 176,521 192,465 Internal research and development 25,575 27,779 30,625 32,896 Selling, general and administrative 50,624 49,130 53,121 55,690 Interest expense 3,645 4,644 5,014 5,049 Other expense (income) - net (770 ) (2,026 ) (1,755 ) 768 Earnings before income taxes 26,899 29,868 31,220 34,207 Income taxes 5,758 20,272 1,122 7,040 Net Earnings $ 21,141 $ 9,596 $ 30,098 $ 27,167 Basic earnings per share $ 0.34 $ 0.15 $ 0.48 $ 0.44 Diluted earnings per share $ 0.32 $ 0.15 $ 0.45 $ 0.42 |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jul. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 30, 2017 |
Significant Accounting Policies [Line Items] | ||||
Inventory reserve amount | $ 23,500,000 | $ 22,500,000 | ||
Property, plant and equipment estimated useful lives, years | 15 years | |||
Variable interest entity, ownership percentage | 25.00% | |||
Equity interest acquired | 93.80% | 93.80% | ||
Loss contingency liability | $ 0 | |||
Maximum percentage of total revenues represented by distributors and agents that are not granted price protection | 10.00% | |||
Standard product warranty description | The Company offers an assurance-type limited warranty that products will be free from defects in materials and workmanship. The warranty is typically one year or the industry standard in length and is limited to either (1) the replacement or repair of the product or (2) a credit against future purchases. The products are not sold with a right of return. | |||
Assurance-type limited product warranty period | 1 year | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible assets useful life, years | 5 years | |||
Variable interest entity, ownership percentage | 20.00% | |||
Equity interest acquired | 50.00% | |||
Minimum | ASU 2016-02 | Subsequent Event | ||||
Significant Accounting Policies [Line Items] | ||||
Increase in total assets and liabilities due to ASU adoption | $ 90,000,000 | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible assets useful life, years | 20 years | |||
Maximum | ASU 2016-02 | Subsequent Event | ||||
Significant Accounting Policies [Line Items] | ||||
Increase in total assets and liabilities due to ASU adoption | $ 120,000,000 | |||
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 |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | Jun. 30, 2019 |
Minimum | Commercial | Direct Ship Parts | |
Significant Accounting Policies [Line Items] | |
Expected timing of satisfaction, period | 30 days |
Minimum | U.S. Government | Direct Ship Parts | |
Significant Accounting Policies [Line Items] | |
Expected timing of satisfaction, period | 30 days |
Maximum | Commercial | Direct Ship Parts | |
Significant Accounting Policies [Line Items] | |
Expected timing of satisfaction, period | 60 days |
Maximum | U.S. Government | Direct Ship Parts | |
Significant Accounting Policies [Line Items] | |
Expected timing of satisfaction, period | 60 days |
Maximum | U.S. Government | Services | |
Significant Accounting Policies [Line Items] | |
Expected timing of satisfaction, period | 60 days |
Pending Merger - Additional Inf
Pending Merger - Additional Information (Detail) - USD ($) | Mar. 04, 2019 | Dec. 14, 2018 | Nov. 08, 2018 | Jun. 30, 2019 |
Bank of America, N.A. | ||||
Business Acquisition [Line Items] | ||||
Letter of credit sub-facility maximum borrowing capacity | $ 25,000,000 | |||
Swing loan sub-facility maximum initial borrowing capacity | 20,000,000 | |||
Finisar Corporation | ||||
Business Acquisition [Line Items] | ||||
Aggregate principal amount | 575,000,000 | |||
Senior Secured Credit Facility | Bank of America, N.A. | ||||
Business Acquisition [Line Items] | ||||
Aggregate principal amount | 1,625,000,000 | |||
Term A Loan Facility | Bank of America, N.A. | ||||
Business Acquisition [Line Items] | ||||
Aggregate principal amount | $ 1,175,000,000 | |||
Debt instrument term | 5 years | |||
New Senior Credit Facilities | Bank of America, N.A. | ||||
Business Acquisition [Line Items] | ||||
Aggregate principal amount | $ 450,000,000 | |||
Debt instrument term | 5 years | |||
Credit facility, outstanding amount | $ 0 | |||
Term B Loan Facility | Bank of America, N.A. | ||||
Business Acquisition [Line Items] | ||||
Aggregate principal amount | $ 720,000,000 | |||
Finisar Corporation | ||||
Business Acquisition [Line Items] | ||||
Percentage of aggregate consideration in cash | 60.00% | |||
Percentage of aggregate consideration in stock | 40.00% | |||
Amount per share to be received | $ 46.88 | |||
Finisar Corporation | Senior Secured Credit Facility | Bank of America, N.A. | ||||
Business Acquisition [Line Items] | ||||
Commitment fee percentage | 100.00% | |||
Finisar Corporation | Restricted Stock Units (RSUs) | ||||
Business Acquisition [Line Items] | ||||
Amount per share to be received | $ 15.60 | |||
Number of shares to be received | 0.2218 | |||
Finisar Corporation | 2005 Stock Incentive Plan | ||||
Business Acquisition [Line Items] | ||||
Amount per share to be received | $ 26 | |||
Description of stock transaction | At the effective time of the Merger (the “Effective Time”), each option granted pursuant to Finisar’s 2005 Stock Incentive Plan, as such plan has been further amended and restated (each, a “Finisar Stock Option”), or portion thereof, that is outstanding and unexercised as of immediately prior to the Effective Time (whether vested or unvested) will be cancelled, terminated and converted into the right to receive an amount of Mixed Election Consideration that would be payable to a holder of such number of shares of Finisar Common Stock equal to the quotient of (i) the product of (a) the excess, if any, of $26.00 over the exercise price per share of such Finisar Stock Option multiplied by (b) the number of shares of Finisar Common Stock subject to such Finisar Stock Option, divided by (ii) $26.00. | |||
Maximum | Finisar Corporation | Senior Secured Credit Facility | Bank of America, N.A. | ||||
Business Acquisition [Line Items] | ||||
Aggregate principal amount | $ 2,425,000,000 | |||
Cash Election Consideration | Finisar Corporation | ||||
Business Acquisition [Line Items] | ||||
Amount per share to be received | $ 26 | |||
Stock Election Consideration | Finisar Corporation | ||||
Business Acquisition [Line Items] | ||||
Number of shares to be received | 0.5546 | |||
Mixed Election Consideration | Finisar Corporation | ||||
Business Acquisition [Line Items] | ||||
Amount per share to be received | $ 15.60 | |||
Number of shares to be received | 0.2218 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||||
Net cash paid at acquisition | $ 83,067,000 | $ 80,503,000 | $ 40,015,000 | |||
Goodwill | 319,778,000 | 270,678,000 | 250,342,000 | |||
Business acquisitions, contingent consideration | 4,400,000 | |||||
II-VI Photonics Segment | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 134,057,000 | 109,670,000 | 108,544,000 | |||
II-VI Performance Products Segment | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 87,840,000 | $ 62,271,000 | $ 62,271,000 | |||
CoAdna Holdings, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Net cash paid at acquisition | $ 85,000,000 | |||||
Acquisition, inclusive of cash acquired | 42,200,000 | |||||
Goodwill | 24,898,000 | |||||
Business acquisition, transaction costs | 1,900,000 | |||||
Fair value of accounts receivable acquired | 5,700,000 | |||||
Fair value of accounts receivable gross contractual amount | 5,700,000 | |||||
Goodwill deductible for income tax purposes | 0 | |||||
Business acquisition, revenue of acquired entity excluding sales to customers through sales offices | 12,400,000 | |||||
Business acquisition, net loss of acquired entity | 600,000 | |||||
Business acquisition, Inventory acquired | 6,189,000 | |||||
Intangible assets | 16,072,000 | |||||
CoAdna Holdings, Inc. | II-VI Photonics Segment | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 24,900,000 | |||||
Product Line | ||||||
Business Acquisition [Line Items] | ||||||
Net cash paid at acquisition | $ 10,000,000 | |||||
Goodwill | 1,200,000 | |||||
Business acquisition, Inventory acquired | 200,000 | |||||
Business acquisition, equipment acquired | 2,300,000 | |||||
Product Line | Technology-Based Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 6,300,000 | |||||
Redstone Aerospace Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Net cash paid at acquisition | $ 27,959,000 | |||||
Goodwill | 21,596,000 | |||||
Intangible assets | 9,100,000 | |||||
Redstone Aerospace Corporation | Upon Achievement of Financial Objectives | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisitions, contingent consideration | 2,000,000 | |||||
Redstone Aerospace Corporation | Technology-Based Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 9,100,000 | |||||
Redstone Aerospace Corporation | II-VI Performance Products Segment | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 21,600,000 |
Allocation of Purchase Price of
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail)) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Assets | |||||
Goodwill | $ 319,778 | $ 270,678 | $ 250,342 | ||
CoAdna Holdings, Inc. | |||||
Assets | |||||
Accounts receivable | $ 5,684 | ||||
Inventories | 6,189 | ||||
Prepaid and other assets | 2,454 | ||||
Property, plant & equipment | 3,181 | ||||
Intangible assets | 16,072 | ||||
Goodwill | 24,898 | ||||
Total assets acquired | 58,478 | ||||
Liabilities | |||||
Accounts payable | 4,006 | ||||
Other accrued liabilities | 4,103 | ||||
Long term accrued income taxes | 6,656 | ||||
Deferred tax liabilities | 897 | ||||
Total liabilities assumed | 15,662 | ||||
Net assets acquired | $ 42,816 | ||||
Redstone Aerospace Corporation | |||||
Assets | |||||
Accounts receivable | $ 1,606 | ||||
Other Assets | 215 | ||||
Property, plant & equipment | 350 | ||||
Intangible assets | 9,100 | ||||
Goodwill | 21,596 | ||||
Total assets acquired | 32,867 | ||||
Liabilities | |||||
Non-Interest bearing liabilities | 980 | ||||
Deferred tax liabilities | 2,152 | ||||
Total liabilities assumed | 3,132 | ||||
Net assets acquired | $ 29,735 |
Acquisitions - Purchase Price a
Acquisitions - Purchase Price at the Date of Acquisition (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Net cash paid at acquisition | $ 83,067 | $ 80,503 | $ 40,015 | |
Redstone Aerospace Corporation | ||||
Business Acquisition [Line Items] | ||||
Net cash paid at acquisition | $ 27,959 | |||
Fair value of cash earnout arrangement | 1,776 | |||
Purchase price | $ 29,735 |
Other Investments - Additional
Other Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | 19 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2019 | Sep. 30, 2018 | Nov. 30, 2017 | |
Schedule Of Equity Method Investments [Line Items] | ||||||
Equity interest, percentage | 93.80% | 93.80% | 93.80% | |||
Aggregate cost of equity method investments | $ 51,500,000 | |||||
Pro-rata share of earnings from equity method investment | $ 3,214,000 | $ 3,594,000 | $ 744,000 | |||
Voting interest | 25.00% | |||||
Equity Investment | $ 76,208,000 | 69,215,000 | $ 76,208,000 | |||
Purchase price description of minority interest under equity method | The purchase price is equal to the greater of: (a) (i) the product of the aggregate trailing 12-month revenues of the equity investment preceding the date of purchase, multiplied by (ii) a factor of 2.9 multiplied by (iii) a factor of 0.723, multiplied by (iv) the percentage interest owned by each minority equity holder and (b) $966,666. | |||||
Minimum purchase price consideration of remaining minority interest under equity method | $ 966,666 | 966,666 | ||||
Interest percentage in investment, accounted under cost method | 10.00% | |||||
Investment accounted under cost method | $ 4,500,000 | |||||
Other Long-term Liabilities | ASC 815-10, Derivatives and Hedging | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Equity method Investment, noncurrent liabilities | $ 2,200,000 | |||||
Equity Investment | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Equity Investment | $ 57,600,000 | 57,600,000 | ||||
Privately-held Company | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Pro-rata share of earnings from equity method investment | 2,400,000 | $ 1,300,000 | ||||
Guangdong Fuxin Electronic Technology | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Equity interest, percentage | 20.20% | 20.20% | ||||
Pro-rata share of earnings from equity method investment | $ 1,900,000 | 1,200,000 | 700,000 | |||
Total carrying value of equity method investment | 14,100,000 | 12,900,000 | $ 14,100,000 | |||
Dividends from equity investment | $ 700,000 | $ 400,000 | $ 400,000 |
Schedule of Equity in Nonconsol
Schedule of Equity in Nonconsolidated Investment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 30, 2017 |
Schedule Of Equity Method Investments [Line Items] | |||
Equity Investment, Ownership Percentage | 93.80% | 93.80% | |
Equity Investment | $ 76,208 | $ 69,215 | |
Equity Investment | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity Investment | $ 57,600 | ||
Nonconsolidated Investment | Equity Investment | USA | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity Investment, Ownership Percentage | 93.80% | ||
Equity Investment | $ 57,645 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregated Revenue by Market and Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 362,728 | $ 342,496 | $ 342,839 | $ 314,433 | $ 321,075 | $ 294,746 | $ 281,470 | $ 261,503 | $ 1,362,496 | $ 1,158,794 | $ 972,046 |
II-VI Laser Solutions | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 396,573 | ||||||||||
II-VI Photonics | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 638,889 | ||||||||||
II-VI Performance Products | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 327,034 | ||||||||||
Commercial | Direct Ship Parts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 1,194,509 | ||||||||||
Commercial | Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 21,646 | ||||||||||
Commercial | II-VI Laser Solutions | Direct Ship Parts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 382,066 | ||||||||||
Commercial | II-VI Laser Solutions | Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 3,738 | ||||||||||
Commercial | II-VI Photonics | Direct Ship Parts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 631,407 | ||||||||||
Commercial | II-VI Photonics | Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 7,482 | ||||||||||
Commercial | II-VI Performance Products | Direct Ship Parts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 181,036 | ||||||||||
Commercial | II-VI Performance Products | Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 10,426 | ||||||||||
U.S. Government | Direct Ship Parts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 130,313 | ||||||||||
U.S. Government | Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 16,028 | ||||||||||
U.S. Government | II-VI Laser Solutions | Direct Ship Parts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 10,751 | ||||||||||
U.S. Government | II-VI Laser Solutions | Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 18 | ||||||||||
U.S. Government | II-VI Performance Products | Direct Ship Parts | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 119,562 | ||||||||||
U.S. Government | II-VI Performance Products | Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 16,010 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Disaggregation Of Revenue [Abstract] | |
Revenue recognized related to customer payments | $ 3.4 |
Contract liabilities | $ 19.4 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 119,917 | $ 97,502 |
Work in progress | 101,091 | 83,002 |
Finished goods | 75,274 | 67,764 |
Inventories, Total | $ 296,282 | $ 248,268 |
Property, Plant & Equipment (De
Property, Plant & Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 1,068,994 | $ 947,863 |
Less accumulated depreciation | (486,204) | (422,973) |
Property, Plant and Equipment, net | 582,790 | 524,890 |
Land and Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 9,001 | 9,072 |
Buildings and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 249,238 | 216,507 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 739,330 | 633,934 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 71,425 | $ 88,350 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill [Line Items] | ||
Balance-beginning of period | $ 270,678 | $ 250,342 |
Goodwill acquired | 51,638 | 18,956 |
Foreign currency translation | (2,538) | 973 |
Balance-end of period | 319,778 | 270,678 |
IPI | ||
Goodwill [Line Items] | ||
Goodwill adjustment for prior year acquisition - IPI | 407 | |
II-VI Laser Solutions | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 98,737 | 79,527 |
Goodwill acquired | 18,956 | |
Foreign currency translation | (856) | 254 |
Balance-end of period | 97,881 | 98,737 |
II-VI Photonics | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 109,670 | 108,544 |
Goodwill acquired | 26,069 | |
Foreign currency translation | (1,682) | 719 |
Balance-end of period | 134,057 | 109,670 |
II-VI Photonics | IPI | ||
Goodwill [Line Items] | ||
Goodwill adjustment for prior year acquisition - IPI | 407 | |
II-VI Performance Products | ||
Goodwill [Line Items] | ||
Balance-beginning of period | 62,271 | 62,271 |
Goodwill acquired | 25,569 | |
Balance-end of period | $ 87,840 | $ 62,271 |
Gross Carrying Amount and Accum
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Other Than Goodwill (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 241,840 | $ 211,870 |
Accumulated Amortization | (102,516) | (86,801) |
Net Book Value | 139,324 | 125,069 |
Technology and Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 91,637 | 66,812 |
Accumulated Amortization | (39,679) | (32,979) |
Net Book Value | 51,958 | 33,833 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,759 | 15,882 |
Accumulated Amortization | (1,601) | (1,471) |
Net Book Value | 14,158 | 14,411 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 132,872 | 127,603 |
Accumulated Amortization | (59,664) | (50,792) |
Net Book Value | 73,208 | 76,811 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,572 | 1,573 |
Accumulated Amortization | $ (1,572) | (1,559) |
Net Book Value | $ 14 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2019 | Sep. 30, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||||
Amortization expense recorded on intangible assets | $ 16,600 | $ 14,600 | $ 12,700 | ||
Carrying amount of indefinite trade names acquired | $ 14,000 | ||||
CoAdna Holdings, Inc. | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Identifiable intangibles assets recorded in connection with acquisitions | $ 16,072 | ||||
Redstone Aerospace Corporation | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Identifiable intangibles assets recorded in connection with acquisitions | $ 9,100 | ||||
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 | 84 months | ||||
Technology and Patents | CoAdna Holdings, Inc. | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Identifiable intangibles assets recorded in connection with acquisitions | $ 9,800 | ||||
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 | 130 months | ||||
Customer Lists | CoAdna Holdings, Inc. | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Identifiable intangibles assets recorded in connection with acquisitions | $ 6,300 | ||||
Customer Lists | Minimum | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Amortization period of finite lived intangible assets, in months | 60 months | ||||
Customer Lists | Maximum | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Amortization period of finite lived intangible assets, in months | 240 months | ||||
Technology-Based Intangible Assets | WSS Product Line | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Identifiable intangibles assets recorded in connection with acquisitions | $ 6,300 | ||||
Technology-Based Intangible Assets | Redstone Aerospace Corporation | |||||
Goodwill And Other Intangible Assets [Line Items] | |||||
Identifiable intangibles assets recorded in connection with acquisitions | $ 9,100 |
Estimated Amortization Expense
Estimated Amortization Expense for Existing Intangible Assets for Each of Five Succeeding Years (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 16,700 |
2021 | 16,300 |
2022 | 14,800 |
2023 | 14,400 |
2024 | $ 14,000 |
Components of Debt (Detail)
Components of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | $ 511,617 | |
Total debt | 466,997 | $ 439,013 |
Current portion of long-term debt | (23,834) | (20,000) |
Long-term debt, less current portion | 443,163 | 419,013 |
0.25% Convertible Senior Note Due 2022 | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 345,000 | 345,000 |
Convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount | (43,859) | (56,409) |
Note payable | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 3,834 | |
Integrated Photonics, Inc | Note payable | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 3,834 | 3,834 |
Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 115,000 | 80,000 |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | 45,000 | 65,000 |
Amended Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Amended credit facility unamortized debt issuance costs | (761) | (1,126) |
Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Total debt, Gross | $ 2,783 | $ 2,714 |
Components of Debt (Parenthetic
Components of Debt (Parenthetical) (Detail) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
0.25% Convertible Senior Note Due 2022 | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, interest rate | 0.25% | 0.25% |
London Interbank Offered Rate (LIBOR) | Term Loans | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.75% | 1.75% |
London Interbank Offered Rate (LIBOR) | Line of credit | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.75% | 1.75% |
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, rate added on variable rate | 1.75% | 1.75% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Aug. 29, 2017USD ($) | Jul. 28, 2016USD ($) | Jun. 30, 2019USD ($)dJPY (¥) | Jun. 30, 2018USD ($)$ / shares | Jun. 30, 2017USD ($) | Jun. 30, 2019JPY (¥) | Jun. 30, 2018JPY (¥) | Aug. 24, 2017USD ($) |
Line Of Credit Facility [Line Items] | ||||||||
Net proceeds after deducting initial purchasers discount and estimated offering expenses | $ 345,000,000 | |||||||
Proceeds from notes used to repurchase common stock | $ 1,616,000 | 49,875,000 | ||||||
Repayments of revolving credit facility | 135,000,000 | 292,000,000 | $ 25,000,000 | |||||
Payment of debt issuance costs | 5,589,000 | 10,061,000 | 1,384,000 | |||||
Offering costs attributable to equity component | 1,694,000 | |||||||
Available credit under lines of credit | $ 211,900,000 | 246,400,000 | ||||||
Total outstanding letters of credit | $ 400,000 | |||||||
Weighted average interest rate of total borrowings | 1.60% | 1.30% | 1.60% | 1.30% | ||||
Weighted average of total borrowings | $ 533,900,000 | $ 476,600,000 | ||||||
Credit facility, interest paid | 9,200,000 | 6,600,000 | 6,100,000 | |||||
Credit facility, commitment fees paid | 9,200,000 | $ 6,600,000 | $ 6,100,000 | |||||
Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument maturity date | Jul. 27, 2021 | |||||||
Aggregate principal amount | $ 325,000,000 | |||||||
Credit facility, term | 5 years | |||||||
Term Loans | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Aggregate principal amount | $ 100,000,000 | |||||||
Term loan, quarterly principal Payment | $ 5,000,000 | |||||||
Term loan, maturity date | Jul. 27, 2021 | |||||||
Term loan, first quarterly principal payment commencement date | Oct. 1, 2016 | |||||||
Yen denominated line of credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Aggregate principal amount | 4,600,000 | ¥ 500,000,000 | ||||||
Debt instrument, month and year of maturity | 2020-08 | |||||||
Line of credit, outstanding | $ 2,800,000 | ¥ 300,000,000 | ¥ 300,000,000 | |||||
London Interbank Offered Rate (LIBOR) | Term Loans | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.75% | 1.75% | ||||||
London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.75% | 1.75% | ||||||
Maximum | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Credit facility, optional additional borrowing amount | $ 100,000,000 | |||||||
Maximum | Base Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.25% | |||||||
Maximum | Euro Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 2.25% | |||||||
Maximum | London Interbank Offered Rate (LIBOR) | Yen denominated line of credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.75% | |||||||
Minimum | Base Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 0.00% | |||||||
Minimum | Euro Rate Option | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, rate added on variable rate | 1.00% | |||||||
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% | |||||||
0.25% Convertible Senior Note Due 2022 | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate | 0.25% | 0.25% | 0.25% | 0.25% | ||||
Debt instrument maturity date | Sep. 1, 2022 | |||||||
Debt instrument maturity date description | The Notes mature on September 1, 2022, unless earlier repurchased by the Company or converted by holders in accordance with the terms of the Notes | |||||||
Debt instrument payment terms description | Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. | |||||||
Debt instrument frequency of periodic payment | semi-annually | |||||||
Debt instrument interest payable beginning date | Mar. 1, 2018 | |||||||
Effective interest rate | 4.50% | 4.50% | ||||||
Debt instrument conversion, shares issued per $1,000 principal amount | 21.25 | |||||||
Debt instrument conversion, principal amount of each note converted | $ 1,000 | |||||||
Debt instrument conversion, conversion price per share | $ / shares | $ 47.06 | |||||||
Debt instrument conversion, If-converted value of notes | $ 268,000,000 | |||||||
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible into common stock | d | 20 | |||||||
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible into common stock | d | 30 | |||||||
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed in order for the notes to be convertible | 130.00% | |||||||
Number of consecutive business days immediately after any five consecutive trading day period during the note measurement period | ¥ | 5 | |||||||
Number of consecutive trading days before five consecutive business days during the note measurement period | d | 5 | |||||||
Offering costs attributable to debt component | $ 8,400,000 | |||||||
Offering costs attributable to equity component | $ 1,700,000 | |||||||
Unamortized discount | $ 38,300,000 | |||||||
Amortization period | 3 years | |||||||
0.25% Convertible Senior Note Due 2022 | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Debt instrument conversion obligation trading price as percentage of product common stock closing sale price and conversion rate | 98.00% | |||||||
0.25% Convertible Senior Note Due 2022 | Initial Purchasers | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Aggregate principal amount | $ 345,000,000 | |||||||
Debt instrument, interest rate | 0.25% | |||||||
Sale of notes to initial purchasers settlement date | Aug. 29, 2017 | |||||||
Net proceeds after deducting initial purchasers discount and estimated offering expenses | $ 336,000,000 | |||||||
Proceeds from notes used to repurchase common stock | 49,900,000 | |||||||
Repayments of revolving credit facility | 252,000,000 | |||||||
Payment of debt issuance costs | $ 10,100,000 |
Summary of Total Interest Expen
Summary of Total Interest Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||
Amortization of debt discount and debt issuance costs including initial purchaser discount | $ 12,550 | $ 10,057 |
0.25% Convertible Senior Note Due 2022 | ||
Debt Instrument [Line Items] | ||
0.25% contractual coupon | 874 | 731 |
Amortization of debt discount and debt issuance costs including initial purchaser discount | 12,550 | 10,058 |
Interest expense | $ 13,424 | $ 10,789 |
Summary of Total Interest Exp_2
Summary of Total Interest Expense Recognized (Parenthetical) (Detail) | Jun. 30, 2019 | Jun. 30, 2018 |
0.25% Convertible Senior Note Due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 0.25% | 0.25% |
Remaining Annual Principal Paym
Remaining Annual Principal Payments of Credit Facilities and Notes Payable (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Line Of Credit Facility [Line Items] | ||
June 30, 2020 | $ 23,834 | |
June 30, 2021 | 22,783 | |
June 30, 2022 | 120,000 | |
June 30, 2023 | 345,000 | |
Total | 511,617 | |
Term Loans | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2020 | 20,000 | |
June 30, 2021 | 20,000 | |
June 30, 2022 | 5,000 | |
Total | 45,000 | $ 65,000 |
Yen Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2021 | 2,783 | |
Total | 2,783 | 2,714 |
U.S. Dollar Line of Credit | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2022 | 115,000 | |
Total | 115,000 | $ 80,000 |
Note Payable | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2020 | 3,834 | |
Total | 3,834 | |
Convertibles Notes | ||
Line Of Credit Facility [Line Items] | ||
June 30, 2023 | 345,000 | |
Total | $ 345,000 |
Components of Earnings (Losses)
Components of Earnings (Losses) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. loss | $ (34,241) | $ (15,207) | $ (6,944) | ||||||||
Non-U.S. income | 163,054 | 137,401 | 125,732 | ||||||||
Earnings Before Income Taxes | $ 34,729 | $ 27,015 | $ 34,727 | $ 32,342 | $ 34,207 | $ 31,220 | $ 29,868 | $ 26,899 | $ 128,813 | $ 122,194 | $ 118,788 |
Components of Income Tax Expens
Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current, Federal | $ 1,755 | $ 699 | $ 2,133 | ||||||||
Current, State | 472 | 401 | 253 | ||||||||
Current, Foreign | 29,531 | 32,147 | 22,312 | ||||||||
Total Current | 31,758 | 33,247 | 24,698 | ||||||||
Deferred, Federal | (3,764) | (3,064) | (6,963) | ||||||||
Deferred, State | (2,010) | 1,615 | (1,251) | ||||||||
Deferred, Foreign | (4,688) | 2,394 | 7,030 | ||||||||
Total Deferred | (10,462) | 945 | (1,184) | ||||||||
Total Income Tax Expense | $ 6,701 | $ 2,377 | $ 6,025 | $ 6,193 | $ 7,040 | $ 1,122 | $ 20,272 | $ 5,758 | $ 21,296 | $ 34,192 | $ 23,514 |
Schedule of Principal Items Com
Schedule of Principal Items Comprising Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Inventory capitalization | $ 5,687 | $ 5,267 |
Non-deductible accruals | 1,251 | 1,125 |
Accrued employee benefits | 9,797 | 7,614 |
Net-operating loss and credit carryforwards | 54,192 | 48,738 |
Share-based compensation expense | 7,192 | 7,925 |
Other | 5,488 | 3,242 |
Valuation allowances | (16,558) | (21,797) |
Total deferred income tax assets | 67,049 | 52,114 |
Tax over book accumulated depreciation | (28,184) | (24,174) |
Intangible assets | (28,202) | (24,649) |
Tax on unremitted earnings | (11,662) | (13,090) |
Convertible debt | (8,662) | (11,376) |
Other | (5,728) | (4,020) |
Total deferred income tax liabilities | (82,438) | (77,309) |
Net deferred income taxes | $ (15,389) | $ (25,195) |
Schedule of Reconciliation of I
Schedule of Reconciliation of Income Tax Expense at Statutory U.S. Federal Rate to Reported Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Taxes at statutory rate, amount | $ 27,051 | $ 34,284 | $ 41,576 | ||||||||
State income taxes-net of federal benefit, amount | (1,212) | 1,426 | (641) | ||||||||
Taxes on non U.S. earnings, amount | (5,857) | (16,058) | (12,907) | ||||||||
Valuation allowance, amount | (6,703) | (6,008) | (806) | ||||||||
Research and manufacturing incentive deductions and credits, amount | (11,756) | (7,024) | (5,681) | ||||||||
Stock compensation, amount | (1,914) | (4,103) | 1,770 | ||||||||
Repatriation tax, amount | 14,108 | 36,777 | |||||||||
GILTI and FDII, amount | 6,437 | ||||||||||
Impact of U.S. tax rate change on deferred balances, amount | (4,209) | ||||||||||
Other, amount | 1,142 | (893) | 203 | ||||||||
Total Income Tax Expense | $ 6,701 | $ 2,377 | $ 6,025 | $ 6,193 | $ 7,040 | $ 1,122 | $ 20,272 | $ 5,758 | $ 21,296 | $ 34,192 | $ 23,514 |
Taxes at statutory rate | 21.00% | 28.00% | 35.00% | ||||||||
State income taxes-net of federal benefit, rate | (1.00%) | 1.00% | |||||||||
Taxes on non U.S. earnings, rate | (5.00%) | (13.00%) | (11.00%) | ||||||||
Valuation allowance, rate | (5.00%) | (5.00%) | (1.00%) | ||||||||
Research and manufacturing incentive deductions and credits, rate | (9.00%) | (6.00%) | (5.00%) | ||||||||
Stock compensation, rate | (1.00%) | (3.00%) | 2.00% | ||||||||
Repatriation tax, rate | 11.00% | 30.00% | |||||||||
GILTI and FDII, rate | 5.00% | ||||||||||
Impact of U.S. tax rate change on deferred balances, rate | (3.00%) | ||||||||||
Other, rate | 1.00% | (1.00%) | |||||||||
Total Effective Income Tax, rate | 17.00% | 28.00% | 20.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Contingency [Line Items] | |||
Deferred income taxes, undistributed foreign earnings | $ 0 | ||
Estimated associated withholding tax related to previously taxed earnings | 11,700,000 | ||
Cash paid for income taxes | $ 26,300,000 | $ 21,300,000 | $ 23,600,000 |
Effective income tax rate, reductions | 0.25% | 0.17% | 0.31% |
Interest and penalties recognized within income tax expense (benefit) | $ (100,000) | $ 300,000 | $ 500,000 |
Interest and penalties accrued | 1,200,000 | 600,000 | 300,000 |
Unrecognized tax benefits that would impact effective tax rate | 6,200,000 | $ 1,600,000 | $ 1,300,000 |
Unrecognized tax benefits expected decrease during the next 12 months | $ 2,200,000 | ||
Internal Revenue Service | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2017 | ||
Internal Revenue Service | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2019 | ||
State Jurisdictions | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2014 | ||
State Jurisdictions | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2019 | ||
Foreign Taxing Jurisdictions | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2008 | ||
Foreign Taxing Jurisdictions | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Tax year remain open to examination | 2019 | ||
Subsidiary in Florida | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2016 | ||
Subsidiary in Florida | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2018 | ||
Subsidiaries in Philippines | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2017 | ||
Subsidiary in Vietnam | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2018 | ||
Subsidiary in Vietnam | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2019 | ||
Subsidiary in Germany | Earliest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2012 | ||
Subsidiary in Germany | Latest Tax Year | |||
Income Tax Contingency [Line Items] | |||
Income tax examination, year(s) under examination | 2015 |
Schedule of Gross Operating Los
Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Federal research and development credits | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 20,084 |
Federal research and development credits | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2029-06 |
Federal research and development credits | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2039-06 |
State | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 12,449 |
Tax credit carryforwards, Indefinite | 448 |
Loss carryforwards | $ 52,762 |
Tax credit carryforwards, expiration date | Indefinite |
State | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2020-06 |
Loss carryforwards, expiration date | 2020-06 |
State | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2039-06 |
Loss carryforwards, expiration date | 2039-06 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards | $ 59,749 |
Federal | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards, expiration date | 2020-06 |
Federal | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Loss carryforwards, expiration date | 2036-06 |
Foreign Taxing Jurisdictions | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 1,088 |
Loss carryforwards | 8,467 |
Loss carryforwards, Indefinite | $ 8,502 |
Loss carryforwards, expiration date | Indefinite |
Foreign Taxing Jurisdictions | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2025-06 |
Loss carryforwards, expiration date | 2021-06 |
Foreign Taxing Jurisdictions | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, expiration date | 2027-06 |
Loss carryforwards, expiration date | 2027-06 |
Schedule of Changes in Liabilit
Schedule of Changes in Liability for Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 9,892 | $ 7,577 | $ 5,559 |
Increases in current year tax positions | 191 | 2,536 | 895 |
Increases in prior year tax positions | 376 | 224 | 2,605 |
Decreases in prior year tax positions | (9) | ||
Acquired business | 6,036 | ||
Settlements | (1,143) | ||
Expiration of statute of limitations | (4,975) | (436) | (339) |
Ending balance | $ 11,520 | $ 9,892 | $ 7,577 |
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, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 107,517 | $ 88,002 | $ 95,274 | ||||||||
Weighted average shares | 63,584 | 62,499 | 62,576 | ||||||||
Basic earnings per common share | $ 0.44 | $ 0.39 | $ 0.45 | $ 0.41 | $ 0.44 | $ 0.48 | $ 0.15 | $ 0.34 | $ 1.69 | $ 1.41 | $ 1.52 |
Net earnings | $ 107,517 | $ 88,002 | $ 95,274 | ||||||||
Weighted average shares | 63,584 | 62,499 | 62,576 | ||||||||
Dilutive effect of common stock equivalents | 2,220 | 2,634 | 1,931 | ||||||||
Diluted weighted average common shares | 65,804 | 65,133 | 64,507 | ||||||||
Diluted earnings per common share | $ 0.43 | $ 0.38 | $ 0.44 | $ 0.40 | $ 0.42 | $ 0.45 | $ 0.15 | $ 0.32 | $ 1.63 | $ 1.35 | $ 1.48 |
Schedule of Potential Shares of
Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares | 7,446 | 7,466 | 140 |
0.25% Convertible Senior Note Due 2022 | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares | 7,331 | 7,331 | |
Stock Options And Restricted Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive shares | 115 | 135 | 140 |
Schedule of Potential Shares _2
Schedule of Potential Shares of Common Stock Excluded from the Calculation of Diluted Net Income Per Share (Parenthetical) (Details) - 0.25% Convertible Senior Note Due 2022 | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Debt instrument, interest rate | 0.25% | 0.25% |
Debt instrument maturity date | Sep. 1, 2022 |
Operating Lease Future Rental C
Operating Lease Future Rental Commitments (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 23,000 |
2021 | 17,700 |
2022 | 14,300 |
2023 | 11,200 |
2024 | 9,700 |
Thereafter | $ 44,000 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Leases [Abstract] | |||
Rent expense | $ 20 | $ 17 | $ 14.7 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
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 | $ 24,963 | $ 19,676 | $ 16,036 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, outstanding | 56,400 | 96,100 | 69,300 |
Aggregate intrinsic value of stock options and cash-based stock appreciation rights, exercised | 56,400 | 96,100 | 69,300 |
Total intrinsic value of stock options and cash-based stock appreciation rights, exercised | $ 14,700 | 14,700 | 12,300 |
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 | 12 months | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance share grant, period | 36 months | ||
Stock Options and Cash-Based Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 6,801 | $ 6,605 | $ 5,611 |
Weighted-average fair values of stock options granted under the stock option Plan | $ 20.66 | $ 14.23 | $ 8.88 |
Share based compensation, estimated forfeiture percentage | 16.00% | ||
Share based compensation expense attributable to non-vested shares | $ 13,800 | ||
Restricted Share Awards, Restricted Share Units, and Cash-Based Restricted Share Unit Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 9,242 | $ 7,850 | $ 6,799 |
Share based compensation, estimated forfeiture percentage | 4.50% | ||
Share based compensation expense attributable to non-vested shares | $ 9,100 | ||
Unrecognized compensation cost, weighted-average period of recognition, years | 2 years | ||
Share based compensation, vesting period years | 3 years | ||
Total fair value of restricted stock grant | $ 9,900 | 7,500 | 7,800 |
Total fair value of restricted stock vested | 19,900 | 17,000 | 6,200 |
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense attributable to non-vested shares | $ 5,700 | ||
Unrecognized compensation cost, weighted-average period of recognition, years | 1 year | ||
Total fair value of restricted stock grant | $ 10,000 | 3,800 | 5,300 |
Total fair value of restricted stock vested | 10,500 | 3,600 | 5,900 |
Liability Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 3,000 | $ 4,400 | $ 4,300 |
Omnibus Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock authorized for issuance under the Plan | 3,550,000 | ||
Shares available to be issued under the Plan | 3,600,000 |
Share-Based Compensation Expens
Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | $ 24,963 | $ 19,676 | $ 16,036 |
Stock Options and Cash-Based Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | 6,801 | 6,605 | 5,611 |
Restricted Share Awards, Restricted Share Units, and Cash-Based Restricted Share Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation expense | 9,242 | 7,850 | 6,799 |
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 | $ 8,920 | $ 5,221 | $ 3,626 |
Fair Value Assumptions for Stoc
Fair Value Assumptions for Stock Option and Stock Appreciation Rights (Detail) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 2.80% | 2.00% | 1.43% |
Expected volatility | 37.00% | 37.00% | 37.00% |
Expected life of options | 6 years 11 months 15 days | 6 years 5 months 4 days | 6 years 3 months 10 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) | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Shares | |
Outstanding - July 1, 2018 | shares | 3,928,708 |
Granted | shares | 412,940 |
Exercised | shares | (522,173) |
Forfeited and Expired | shares | (58,192) |
Outstanding - June 30, 2019 | shares | 3,761,283 |
Exercisable - June 30, 2019 | shares | 2,348,812 |
Weighted Average Exercise Price | |
Outstanding - July 1, 2018 | $ / shares | $ 20.07 |
Granted | $ / shares | 47.61 |
Exercised | $ / shares | 16.66 |
Forfeited and Expired | $ / shares | 26.29 |
Outstanding - June 30, 2019 | $ / shares | 23.47 |
Exercisable - June 30, 2019 | $ / shares | $ 18.62 |
Cash-Based Stock Appreciation Rights | |
Number of Shares | |
Outstanding - July 1, 2018 | shares | 205,448 |
Granted | shares | 48,305 |
Exercised | shares | (21,562) |
Forfeited and Expired | shares | (4,695) |
Outstanding - June 30, 2019 | shares | 227,496 |
Exercisable - June 30, 2019 | shares | 89,827 |
Weighted Average Exercise Price | |
Outstanding - July 1, 2018 | $ / shares | $ 22.56 |
Granted | $ / shares | 48.56 |
Exercised | $ / shares | 20.45 |
Forfeited and Expired | $ / shares | 31.43 |
Outstanding - June 30, 2019 | $ / shares | 28.09 |
Exercisable - June 30, 2019 | $ / shares | $ 27.50 |
Share-Based Compensation Outsta
Share-Based Compensation Outstanding and Exercisable Options (Detail) | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
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 | shares | 3,988,789 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 5 years 7 months 24 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 23.74 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 2,438,639 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 4 years 4 months 2 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 18.68 |
$12.07 - $16.97 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 12.07 |
Range of Exercise Prices, Upper range | $ 16.97 |
$12.07 - $16.97 | 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 | shares | 825,579 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 3 years 6 months 7 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 14.41 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 720,059 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 3 years 3 months 10 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 14.47 |
$16.98 - $18.06 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 16.98 |
Range of Exercise Prices, Upper range | $ 18.06 |
$16.98 - $18.06 | 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 | shares | 799,765 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 4 years 6 months 7 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 17.72 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 591,237 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 3 years 11 months 12 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 17.68 |
$18.07 - $21.65 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 18.07 |
Range of Exercise Prices, Upper range | $ 21.65 |
$18.07 - $21.65 | 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 | shares | 734,900 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 4 years 14 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 19.24 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 688,310 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 3 years 10 months 13 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 19.20 |
$21.66 - $33.75 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 21.66 |
Range of Exercise Prices, Upper range | $ 33.75 |
$21.66 - $33.75 | 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 | shares | 679,449 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 7 years 1 month 24 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 22.25 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 309,016 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 7 years 7 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 22.01 |
$33.76 - $49.90 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower range | 33.76 |
Range of Exercise Prices, Upper range | $ 49.90 |
$33.76 - $49.90 | 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 | shares | 949,096 |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Remaining Contractual Term (Years) | 8 years 7 months 13 days |
Stock Options and Cash-Based Stock Appreciation Rights Outstanding, Weighted Average Exercise Price | $ 41.48 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Number of Shares | shares | 130,017 |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Remaining Contractual Term (Years) | 8 years 29 days |
Stock Options and Cash-Based Stock Appreciation Rights Exercisable, Weighted Average Exercise Price | $ 35.82 |
Restricted Share, Restricted Sh
Restricted Share, Restricted Share Unit and Cash-Based Restricted Share Unit Activity (Detail) | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Restricted Stock | |
Number of Shares | |
Nonvested - June 30, 2018 | shares | 595,519 |
Vested | shares | (401,341) |
Forfeited | shares | (10,749) |
Nonvested - June 30, 2019 | shares | 183,429 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2018 | $ / shares | $ 24.58 |
Vested | $ / shares | 21.96 |
Forfeited | $ / shares | 27.15 |
Nonvested - June 30, 2019 | $ / shares | $ 30.30 |
Restricted Stock Units (RSUs) | |
Number of Shares | |
Granted | shares | 177,609 |
Forfeited | shares | (1,872) |
Nonvested - June 30, 2019 | shares | 175,737 |
Weighted Average Grant Date Fair Value | |
Granted | $ / shares | $ 47.16 |
Forfeited | $ / shares | 49.90 |
Nonvested - June 30, 2019 | $ / shares | $ 47.13 |
Cash-Based Restricted Share Units | |
Number of Shares | |
Nonvested - June 30, 2018 | shares | 117,326 |
Granted | shares | 30,506 |
Vested | shares | (68,846) |
Forfeited | shares | (1,344) |
Nonvested - June 30, 2019 | shares | 77,642 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2018 | $ / shares | $ 25.57 |
Granted | $ / shares | 49.05 |
Vested | $ / shares | 22.67 |
Forfeited | $ / shares | 35.59 |
Nonvested - June 30, 2019 | $ / shares | $ 37.19 |
Performance Share Award Activit
Performance Share Award Activity (Detail) | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Performance Share Awards | |
Number of Shares | |
Nonvested - June 30, 2018 | shares | 382,270 |
Granted | shares | 218,583 |
Vested | shares | (100,481) |
Forfeited | shares | (86,721) |
Nonvested - June 30, 2019 | shares | 413,651 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2018 | $ / shares | $ 24.57 |
Granted | $ / shares | 38 |
Vested | $ / shares | 17.84 |
Forfeited | $ / shares | 22.24 |
Nonvested - June 30, 2019 | $ / shares | $ 36.80 |
Cash-Based Performance Share Units | |
Number of Shares | |
Nonvested - June 30, 2018 | shares | 17,279 |
Granted | shares | 11,943 |
Vested | shares | (4,398) |
Forfeited | shares | (600) |
Nonvested - June 30, 2019 | shares | 24,224 |
Weighted Average Grant Date Fair Value | |
Nonvested - June 30, 2018 | $ / shares | $ 25.71 |
Granted | $ / shares | 44 |
Vested | $ / shares | 17.84 |
Forfeited | $ / shares | 38.77 |
Nonvested - June 30, 2019 | $ / shares | $ 37.47 |
Segment and Geographic Report_3
Segment and Geographic Reporting - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Financial Information of Compan
Financial Information of Company's Operation by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | $ 362,728 | $ 342,496 | $ 342,839 | $ 314,433 | $ 321,075 | $ 294,746 | $ 281,470 | $ 261,503 | $ 1,362,496 | $ 1,158,794 | $ 972,046 |
Operating income | 148,668 | 136,763 | 115,556 | ||||||||
Interest expense | (5,606) | (5,647) | (5,580) | (5,584) | (5,049) | (5,014) | (4,644) | (3,645) | (22,417) | (18,352) | (6,809) |
Other income, net | (384) | 1,532 | 701 | 713 | (768) | 1,755 | 2,026 | 770 | 2,562 | 3,783 | 10,041 |
Income taxes | (6,701) | (2,377) | (6,025) | (6,193) | (7,040) | (1,122) | (20,272) | (5,758) | (21,296) | (34,192) | (23,514) |
Net earnings | 28,028 | $ 24,638 | $ 28,702 | $ 26,149 | 27,167 | $ 30,098 | $ 9,596 | $ 21,141 | 107,517 | 88,002 | 95,274 |
Depreciation and amortization | 92,365 | 80,770 | 63,637 | ||||||||
Expenditures for property, plant & equipment | 128,750 | 161,323 | 142,945 | ||||||||
Segment assets | 1,953,773 | 1,761,661 | 1,953,773 | 1,761,661 | |||||||
Goodwill | 319,778 | 270,678 | 319,778 | 270,678 | 250,342 | ||||||
II-VI Laser Solutions | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 396,573 | ||||||||||
Goodwill | 97,881 | 98,737 | 97,881 | 98,737 | 79,527 | ||||||
II-VI Photonics | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 638,889 | ||||||||||
Goodwill | 134,057 | 109,670 | 134,057 | 109,670 | 108,544 | ||||||
II-VI Performance Products | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 327,034 | ||||||||||
Goodwill | 87,840 | 62,271 | 87,840 | 62,271 | 62,271 | ||||||
Operating Segments | II-VI Laser Solutions | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 396,573 | 405,940 | 317,495 | ||||||||
Inter-segment revenues | 91,507 | 34,590 | 33,669 | ||||||||
Operating income | 40,261 | 40,119 | 27,459 | ||||||||
Depreciation and amortization | 44,529 | 38,004 | 24,684 | ||||||||
Expenditures for property, plant & equipment | 43,936 | 80,776 | 81,346 | ||||||||
Segment assets | 716,788 | 740,020 | 716,788 | 740,020 | |||||||
Goodwill | 97,881 | 98,737 | 97,881 | 98,737 | |||||||
Operating Segments | II-VI Photonics | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 638,889 | 486,485 | 440,361 | ||||||||
Inter-segment revenues | 10,745 | 11,180 | 8,003 | ||||||||
Operating income | 81,898 | 63,152 | 66,462 | ||||||||
Depreciation and amortization | 26,273 | 23,242 | 21,612 | ||||||||
Expenditures for property, plant & equipment | 44,851 | 36,122 | 28,811 | ||||||||
Segment assets | 681,610 | 554,574 | 681,610 | 554,574 | |||||||
Goodwill | 134,057 | 109,670 | 134,057 | 109,670 | |||||||
Operating Segments | II-VI Performance Products | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Revenues | 327,034 | 266,369 | 214,190 | ||||||||
Inter-segment revenues | 20,928 | 26,262 | 10,189 | ||||||||
Operating income | 42,153 | 33,492 | 21,635 | ||||||||
Depreciation and amortization | 21,563 | 19,524 | 17,341 | ||||||||
Expenditures for property, plant & equipment | 39,963 | 44,425 | 32,788 | ||||||||
Segment assets | 555,375 | 467,067 | 555,375 | 467,067 | |||||||
Goodwill | $ 87,840 | $ 62,271 | 87,840 | 62,271 | |||||||
Eliminations & Other | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
Inter-segment revenues | (123,180) | $ (72,032) | $ (51,861) | ||||||||
Operating income | $ (15,643) |
Geographical Information of Rev
Geographical Information of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 362,728 | $ 342,496 | $ 342,839 | $ 314,433 | $ 321,075 | $ 294,746 | $ 281,470 | $ 261,503 | $ 1,362,496 | $ 1,158,794 | $ 972,046 |
USA | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 405,404 | 373,735 | 294,200 | ||||||||
China | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 290,287 | 253,672 | 208,595 | ||||||||
Hong Kong | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 319,601 | 186,978 | 190,702 | ||||||||
Germany | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 155,000 | 132,161 | 88,304 | ||||||||
Japan | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 109,670 | 89,153 | 76,212 | ||||||||
Switzerland | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 32,770 | 49,557 | 50,497 | ||||||||
Vietnam | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 22,322 | 26,898 | 22,497 | ||||||||
Italy | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 11,458 | 10,791 | |||||||||
Korea | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 11,674 | 9,757 | 6,584 | ||||||||
United Kingdom | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 2,712 | 9,359 | 8,473 | ||||||||
Singapore | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 6,868 | 5,941 | 3,913 | ||||||||
Belgium | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 4 | 4,511 | 7,503 | ||||||||
Philippines | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 4,179 | 3,909 | 3,057 | ||||||||
Taiwan | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | 2,005 | 1,705 | 718 | ||||||||
Total Non-United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues | $ 957,092 | $ 785,059 | $ 677,846 |
Geographical Information of Lon
Geographical Information of Long Lived Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | $ 591,043 | $ 527,711 | $ 371,572 |
USA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 345,866 | 309,062 | 240,029 |
China | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 108,688 | 81,175 | 62,024 |
United Kingdom | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 60,369 | 65,357 | 396 |
Switzerland | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 35,592 | 37,155 | 36,795 |
Germany | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 14,857 | 14,876 | 15,323 |
Vietnam | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 11,656 | 10,042 | 8,272 |
Philippines | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 7,793 | 6,628 | 6,115 |
Hong Kong | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 5,032 | 2,818 | 1,914 |
Other | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | 1,190 | 598 | 704 |
Total Non-United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-Lived Assets | $ 245,177 | $ 218,649 | $ 131,543 |
Summary of Fair Value and Carry
Summary of Fair Value and Carrying Value of Convertible Notes (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Convertible notes fair value | $ 365,700 |
Convertible notes carrying value | $ 301,141 |
Summary by Level of Fair Value
Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Liabilities: | ||
Contingent earnout arrangements | $ 4,400 | |
Fair Value, Inputs, Level 3 | ||
Liabilities: | ||
Contingent earnout arrangements | $ 6,421 | 7,429 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Foreign currency forward contracts | 121 | |
Liabilities: | ||
Foreign currency forward contracts | 139 | |
Contingent earnout arrangements | 4,397 | 5,405 |
Net put option | 2,024 | 2,024 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets: | ||
Foreign currency forward contracts | 121 | |
Liabilities: | ||
Foreign currency forward contracts | 139 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Liabilities: | ||
Contingent earnout arrangements | 4,397 | 5,405 |
Net put option | $ 2,024 | $ 2,024 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangements Related to Company's Acquisitions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2017 | |
Business Acquisition Contingent Consideration [Line Items] | ||
Balance - beginning of period | $ 4,400 | |
Activity: | ||
Payments | 4,524 | $ 2,000 |
Fair Value, Inputs, Level 3 | ||
Business Acquisition Contingent Consideration [Line Items] | ||
Balance - beginning of period | 7,429 | |
Activity: | ||
Payments | 4,524 | |
Other earnout arrangements | 4,397 | |
Balance - end of period | 6,421 | |
Fair Value, Inputs, Level 3 | Other Expense, (Income) | ||
Activity: | ||
Changes in fair value recorded in other expense (income), net | $ (881) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2019JPY (¥) | Jun. 30, 2018USD ($) | |
Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2019-07 | ||
Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, expiration date | 2019-10 | ||
Foreign Currency Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | $ | $ 17,000,000 | $ 12,000,000 | |
Foreign Currency Forward Exchange Contracts | Minimum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 300,000,000 | ||
Foreign Currency Forward Exchange Contracts | Maximum | |||
Derivative [Line Items] | |||
Foreign currency forward exchange contracts, notional amount | ¥ 645,000,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Aug. 18, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to profit sharing retirement plan | $ 4.6 | $ 5 | $ 4.3 | |
Contributions to the Compensation Plan by the employer | 3 | $ 2.7 | ||
Contributions to the Compensation Plan by the employer in fiscal year 2020 | $ 3 | |||
2018 Employee Stock Purchase Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of maximum employee subscription rate on base pay | 15.00% | |||
Common stock authorized for issuance under the Plan | 2,000,000 | |||
2018 Employee Stock Purchase Plan | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Common stock discount percentage from the fair market value | 90.00% |
Schedule of Changes in Projecte
Schedule of Changes in Projected Benefit Obligations and Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Change in projected benefit obligation: | |||
Service cost | $ 3,629 | $ 3,766 | $ 3,689 |
Interest cost | 528 | 424 | 163 |
Change in plan assets: | |||
Employer contributions | 3,000 | 2,700 | |
Amounts recognized in accumulated other comprehensive income: | |||
Pension adjustment, net of taxes | (6,122) | 2,846 | 2,514 |
Swiss Plan | |||
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of period | 62,554 | 59,518 | |
Service cost | 3,629 | 3,766 | |
Interest cost | 528 | 424 | |
Benefits accumulated, net of benefits paid | 103 | 1,474 | |
Plan amendments | (4,068) | ||
Actuarial (gain) loss on obligation | 6,690 | 1,606 | |
Participant contributions | 1,557 | 1,415 | |
Currency translation adjustment | (1,372) | (1,581) | |
Projected benefit obligation, end of period | 73,483 | 62,554 | 59,518 |
Change in plan assets: | |||
Plan assets at fair value, beginning of period | 49,034 | 42,990 | |
Actual return on plan assets | 342 | 1,566 | |
Employer contributions | 2,965 | 2,731 | |
Participant contributions | 1,557 | 1,415 | |
Benefits accumulated, net of benefits paid | 103 | 1,474 | |
Currency translation adjustment | (1,076) | (1,142) | |
Plan assets at fair value, end of period | 52,719 | 49,034 | $ 42,990 |
Other non-current assets: | |||
Deferred tax asset | 4,392 | 2,859 | |
Other non-current liabilities: | |||
Underfunded pension liability | 20,764 | 13,520 | |
Amounts recognized in accumulated other comprehensive income: | |||
Pension adjustment, net of taxes | (11,784) | 2,846 | |
Accumulated benefit obligation, end of period | $ 69,682 | $ 59,800 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 3,629 | $ 3,766 | $ 3,689 |
Interest cost | 528 | 424 | 163 |
Expected return on plan assets | 951 | 849 | (742) |
Net actuarial loss and prior service credit | 185 | 203 | 594 |
Net periodic pension cost | $ 5,293 | $ 5,242 | $ 3,704 |
Schedule of Projected and Accum
Schedule of Projected and Accumulated Benefit Obligations Rates (Detail) | Jun. 30, 2019 | Jun. 30, 2018 |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Discount rate | 0.50% | 0.90% |
Salary increase rate | 2.00% | 2.00% |
Schedule of Assumptions Used in
Schedule of Assumptions Used in Calculation of Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 0.90% | 0.80% | 0.30% |
Salary increase rate | 2.00% | 2.00% | 2.00% |
Expected return on plan assets | 2.00% | 2.00% | 2.00% |
Schedule of Swiss Plan's Asset
Schedule of Swiss Plan's Asset Allocation (Detail) - Fair Value, Inputs, Level 2 | Jun. 30, 2019 | Jun. 30, 2018 |
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 | 12.00% | 12.00% |
Equity Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 50.00% | 50.00% |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 28.00% | 31.00% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 7.00% | 4.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 3.00% | 3.00% |
Schedule of Estimated Future Be
Schedule of Estimated Future Benefit Payments Under Swiss Plan (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2020 | $ 3,400 |
2021 | 2,900 |
2022 | 3,000 |
2023 | 3,300 |
2024 | 5,100 |
Next five years | $ 24,300 |
Components of Other Accrued Lia
Components of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 49,944 | $ 42,979 |
Contract liabilities | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 10,390 | 3,384 |
Earnout arrangements | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 1,861 | 5,405 |
Other accrued liabilities | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 33,215 | 29,511 |
Warranty reserve | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 4,478 | $ 4,679 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Business acquisitions, contingent consideration | $ 4.4 |
Schedule of Future Commitments
Schedule of Future Commitments (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 32,048 |
2021 | $ 4,964 |
Share Repurchase Programs (Deta
Share Repurchase Programs (Detail) - USD ($) | 11 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Aug. 31, 2017 | Aug. 31, 2014 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 50,000,000 | |||||
Purchase of common stock, shares | 1,366,587 | |||||
Purchase of Treasury Stock | $ 1,616,000 | $ 49,875,000 | ||||
Cumulative purchase of treasury stock | 20,700,000 | |||||
Stock repurchase program, authorized to be repurchase | $ 29,300,000 | |||||
Offering and Sale of Notes | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 50,000,000 | |||||
Purchase of common stock, shares | 1,414,900 | |||||
Purchase of Treasury Stock | $ 49,900,000 | |||||
Program | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Purchase of common stock, shares | 50,000 | 0 | 0 | |||
Purchase of Treasury Stock | $ 1,600,000 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 1,024,311 | $ 900,563 | $ 782,338 |
Other comprehensive income (loss) before reclassifications | (20,626) | 9,795 | (355) |
Amounts reclassified from AOCI | 185 | 203 | 594 |
Net current-period other comprehensive income | (20,441) | 9,998 | 239 |
Ending Balance | 1,133,209 | 1,024,311 | 900,563 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (1,308) | (8,460) | (6,185) |
Other comprehensive income (loss) before reclassifications | (14,319) | 7,152 | (2,275) |
Net current-period other comprehensive income | (14,319) | 7,152 | (2,275) |
Ending Balance | (15,627) | (1,308) | (8,460) |
Defined Benefit Pension Plan | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (2,472) | (5,318) | (7,832) |
Other comprehensive income (loss) before reclassifications | (6,307) | 2,643 | 1,920 |
Amounts reclassified from AOCI | 185 | 203 | 594 |
Net current-period other comprehensive income | (6,122) | 2,846 | 2,514 |
Ending Balance | (8,594) | (2,472) | (5,318) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (3,780) | (13,778) | (14,017) |
Ending Balance | $ (24,221) | $ (3,780) | $ (13,778) |
Capital Lease - Schedule of Fut
Capital Lease - Schedule of Future Minimum Lease Payments Due Under Non-Cancelable Capital Lease (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,355 |
2021 | 2,419 |
2022 | 2,486 |
2023 | 2,554 |
2024 | 2,624 |
Thereafter | 22,116 |
Total minimum lease payments | 34,554 |
Less amount representing interest | 10,193 |
Present value of capitalized payments | $ 24,361 |
Capital Lease - Additional Info
Capital Lease - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Capital Leased Assets [Line Items] | |||
Capital leases future minimum payments present value at inception | $ 25,000 | ||
Property, plant and equipment estimated useful lives, years | 15 years | ||
Depreciation | $ 75,745 | $ 66,202 | $ 50,894 |
Accumulated depreciation on the capital lease asset | 4,200 | ||
Capital Leased Asset | |||
Capital Leased Assets [Line Items] | |||
Depreciation | $ 1,700 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 362,728 | $ 342,496 | $ 342,839 | $ 314,433 | $ 321,075 | $ 294,746 | $ 281,470 | $ 261,503 | $ 1,362,496 | $ 1,158,794 | $ 972,046 |
Cost of goods sold | 224,076 | 215,212 | 211,333 | 190,526 | 192,465 | 176,521 | 172,075 | 155,530 | 841,147 | 696,591 | 583,684 |
Internal research and development | 36,202 | 36,026 | 33,764 | 33,171 | 32,896 | 30,625 | 27,779 | 25,575 | 139,163 | 116,875 | 96,806 |
Selling, general and administrative | 61,731 | 60,128 | 58,136 | 53,523 | 55,690 | 53,121 | 49,130 | 50,624 | 233,518 | 208,565 | 176,000 |
Interest expense | 5,606 | 5,647 | 5,580 | 5,584 | 5,049 | 5,014 | 4,644 | 3,645 | 22,417 | 18,352 | 6,809 |
Other expense (income), net | 384 | (1,532) | (701) | (713) | 768 | (1,755) | (2,026) | (770) | (2,562) | (3,783) | (10,041) |
Earnings Before Income Taxes | 34,729 | 27,015 | 34,727 | 32,342 | 34,207 | 31,220 | 29,868 | 26,899 | 128,813 | 122,194 | 118,788 |
Income taxes | 6,701 | 2,377 | 6,025 | 6,193 | 7,040 | 1,122 | 20,272 | 5,758 | 21,296 | 34,192 | 23,514 |
Net Earnings | $ 28,028 | $ 24,638 | $ 28,702 | $ 26,149 | $ 27,167 | $ 30,098 | $ 9,596 | $ 21,141 | $ 107,517 | $ 88,002 | $ 95,274 |
Basic earnings per share | $ 0.44 | $ 0.39 | $ 0.45 | $ 0.41 | $ 0.44 | $ 0.48 | $ 0.15 | $ 0.34 | $ 1.69 | $ 1.41 | $ 1.52 |
Diluted earnings per share | $ 0.43 | $ 0.38 | $ 0.44 | $ 0.40 | $ 0.42 | $ 0.45 | $ 0.15 | $ 0.32 | $ 1.63 | $ 1.35 | $ 1.48 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Allowance for doubtful accounts | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 837 | $ 1,314 | $ 2,016 | |
Charged to Expense | 548 | (129) | (134) | |
Deduction from Reserves | [1] | (92) | (348) | (568) |
Balance at End of Year | 1,293 | 837 | 1,314 | |
Warranty reserve | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 4,679 | 4,546 | 3,908 | |
Charged to Expense | 4,185 | 3,821 | 4,850 | |
Deduction from Reserves | (4,386) | (3,688) | (4,212) | |
Balance at End of Year | 4,478 | 4,679 | 4,546 | |
Deferred tax asset valuation allowance | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 21,797 | 42,562 | 42,641 | |
Charged to Expense | (1,607) | (4,602) | (79) | |
Charged to Other Accounts | [2] | (16,163) | ||
Balance at End of Year | $ 20,190 | $ 21,797 | $ 42,562 | |
[1] | Primarily relates to write-offs of accounts receivable. | |||
[2] | Primarily relates to the Company’s deferred taxes on the conversion feature of the convertible debt. |