10-Q 1 iivi-20240331.htm 10-Q iivi-20240331
FALSE2024Q3000082031806-30http://fasb.org/us-gaap/2023#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2023#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2023#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2023#PrepaidExpenseAndOtherAssetsCurrent00008203182023-07-012024-03-3100008203182024-05-03xbrli:shares00008203182024-03-31iso4217:USD00008203182023-06-300000820318iivi:SeriesBRedeemableConvertiblePreferredStockMember2024-03-31iso4217:USDxbrli:shares0000820318iivi:SeriesBRedeemableConvertiblePreferredStockMember2023-06-300000820318iivi:SeriesBRedeemableConvertiblePreferredStockMember2023-07-012024-03-31xbrli:pure0000820318iivi:SeriesBRedeemableConvertiblePreferredStockMember2022-07-012023-06-300000820318us-gaap:SeriesAPreferredStockMember2023-06-300000820318us-gaap:SeriesAPreferredStockMember2024-03-310000820318us-gaap:SeriesAPreferredStockMember2023-07-012023-09-300000820318us-gaap:SeriesAPreferredStockMember2022-07-012023-06-3000008203182024-01-012024-03-3100008203182023-01-012023-03-3100008203182022-07-012023-03-310000820318us-gaap:InterestRateSwapMember2024-01-012024-03-310000820318us-gaap:InterestRateSwapMember2023-07-012024-03-310000820318us-gaap:InterestRateSwapMember2023-01-012023-03-310000820318us-gaap:InterestRateSwapMember2022-07-012023-03-310000820318us-gaap:InterestRateCapMember2024-01-012024-03-310000820318us-gaap:InterestRateCapMember2023-07-012024-03-310000820318us-gaap:InterestRateCapMember2023-01-012023-03-310000820318us-gaap:InterestRateCapMember2022-07-012023-03-310000820318iivi:TermALoanFacilityMember2023-07-012024-03-310000820318iivi:TermALoanFacilityMember2022-07-012023-03-310000820318iivi:TermBLoanFacilityMember2023-07-012024-03-310000820318iivi:TermBLoanFacilityMember2022-07-012023-03-310000820318us-gaap:SeriesBPreferredStockMember2023-07-012024-03-310000820318us-gaap:SeriesBPreferredStockMember2022-07-012023-03-3100008203182022-06-3000008203182023-03-310000820318us-gaap:CommonStockMember2023-06-300000820318us-gaap:PreferredStockMember2023-06-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000820318us-gaap:RetainedEarningsMember2023-06-300000820318us-gaap:TreasuryStockCommonMember2023-06-300000820318us-gaap:NoncontrollingInterestMember2023-06-300000820318us-gaap:CommonStockMember2023-07-012023-09-300000820318us-gaap:TreasuryStockCommonMember2023-07-012023-09-3000008203182023-07-012023-09-300000820318us-gaap:CommonStockMemberiivi:ConversionOfPreferredStockMember2023-07-012023-09-300000820318iivi:ConversionOfPreferredStockMemberus-gaap:PreferredStockMember2023-07-012023-09-300000820318iivi:ConversionOfPreferredStockMember2023-07-012023-09-300000820318us-gaap:RetainedEarningsMember2023-07-012023-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000820318us-gaap:InterestRateSwapMember2023-07-012023-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2023-07-012023-09-300000820318us-gaap:InterestRateCapMember2023-07-012023-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateCapMember2023-07-012023-09-300000820318us-gaap:CommonStockMember2023-09-300000820318us-gaap:PreferredStockMember2023-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000820318us-gaap:RetainedEarningsMember2023-09-300000820318us-gaap:TreasuryStockCommonMember2023-09-300000820318us-gaap:NoncontrollingInterestMember2023-09-3000008203182023-09-300000820318us-gaap:CommonStockMember2023-10-012023-12-310000820318us-gaap:TreasuryStockCommonMember2023-10-012023-12-3100008203182023-10-012023-12-310000820318us-gaap:RetainedEarningsMember2023-10-012023-12-310000820318us-gaap:NoncontrollingInterestMember2023-10-012023-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-012023-12-310000820318us-gaap:InterestRateSwapMember2023-10-012023-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2023-10-012023-12-310000820318us-gaap:InterestRateCapMember2023-10-012023-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateCapMember2023-10-012023-12-310000820318us-gaap:CommonStockMember2023-12-310000820318us-gaap:PreferredStockMember2023-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000820318us-gaap:RetainedEarningsMember2023-12-310000820318us-gaap:TreasuryStockCommonMember2023-12-310000820318us-gaap:NoncontrollingInterestMember2023-12-3100008203182023-12-310000820318us-gaap:CommonStockMember2024-01-012024-03-310000820318us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000820318us-gaap:RetainedEarningsMember2024-01-012024-03-310000820318us-gaap:NoncontrollingInterestMember2024-01-012024-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateCapMember2024-01-012024-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2024-01-012024-03-310000820318us-gaap:CommonStockMember2024-03-310000820318us-gaap:PreferredStockMember2024-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000820318us-gaap:RetainedEarningsMember2024-03-310000820318us-gaap:TreasuryStockCommonMember2024-03-310000820318us-gaap:NoncontrollingInterestMember2024-03-310000820318us-gaap:CommonStockMember2022-06-300000820318us-gaap:PreferredStockMember2022-06-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000820318us-gaap:RetainedEarningsMember2022-06-300000820318us-gaap:TreasuryStockCommonMember2022-06-300000820318us-gaap:CommonStockMember2022-07-012022-09-300000820318us-gaap:TreasuryStockCommonMember2022-07-012022-09-3000008203182022-07-012022-09-300000820318iivi:ConversionOfConvertibleDebtMemberus-gaap:CommonStockMember2022-07-012022-09-300000820318iivi:ConversionOfConvertibleDebtMember2022-07-012022-09-300000820318us-gaap:RetainedEarningsMember2022-07-012022-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000820318us-gaap:InterestRateSwapMember2022-07-012022-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2022-07-012022-09-300000820318us-gaap:InterestRateCapMember2022-07-012022-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateCapMember2022-07-012022-09-300000820318us-gaap:CommonStockMember2022-09-300000820318us-gaap:PreferredStockMember2022-09-300000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000820318us-gaap:RetainedEarningsMember2022-09-300000820318us-gaap:TreasuryStockCommonMember2022-09-3000008203182022-09-300000820318us-gaap:CommonStockMember2022-10-012022-12-310000820318us-gaap:TreasuryStockCommonMember2022-10-012022-12-3100008203182022-10-012022-12-310000820318us-gaap:RetainedEarningsMember2022-10-012022-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-012022-12-310000820318us-gaap:InterestRateCapMember2022-10-012022-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateCapMember2022-10-012022-12-310000820318us-gaap:InterestRateSwapMember2022-10-012022-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2022-10-012022-12-310000820318us-gaap:CommonStockMember2022-12-310000820318us-gaap:PreferredStockMember2022-12-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000820318us-gaap:RetainedEarningsMember2022-12-310000820318us-gaap:TreasuryStockCommonMember2022-12-3100008203182022-12-310000820318us-gaap:CommonStockMember2023-01-012023-03-310000820318us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000820318us-gaap:RetainedEarningsMember2023-01-012023-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateSwapMember2023-01-012023-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMemberus-gaap:InterestRateCapMember2023-01-012023-03-310000820318us-gaap:CommonStockMember2023-03-310000820318us-gaap:PreferredStockMember2023-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000820318us-gaap:RetainedEarningsMember2023-03-310000820318us-gaap:TreasuryStockCommonMember2023-03-310000820318iivi:NetworkingSegmentMemberiivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000820318iivi:IndustrialCustomerMemberiivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000820318iivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2024-01-012024-03-310000820318iivi:IndustrialCustomerMember2024-01-012024-03-310000820318iivi:NetworkingSegmentMemberiivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMember2023-07-012024-03-310000820318iivi:IndustrialCustomerMemberiivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012024-03-310000820318iivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2023-07-012024-03-310000820318iivi:IndustrialCustomerMember2023-07-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2024-01-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2024-01-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:CommunicationsCustomerMember2024-01-012024-03-310000820318iivi:CommunicationsCustomerMember2024-01-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2023-07-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2023-07-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:CommunicationsCustomerMember2023-07-012024-03-310000820318iivi:CommunicationsCustomerMember2023-07-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2024-01-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2024-01-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:ElectronicsCustomerMember2024-01-012024-03-310000820318iivi:ElectronicsCustomerMember2024-01-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2023-07-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2023-07-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:ElectronicsCustomerMember2023-07-012024-03-310000820318iivi:ElectronicsCustomerMember2023-07-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2024-01-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2024-01-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:InstrumentationCustomerMember2024-01-012024-03-310000820318iivi:InstrumentationCustomerMember2024-01-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2023-07-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2023-07-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:InstrumentationCustomerMember2023-07-012024-03-310000820318iivi:InstrumentationCustomerMember2023-07-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2024-01-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2023-07-012024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2023-07-012024-03-310000820318iivi:NetworkingSegmentMemberiivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000820318iivi:IndustrialCustomerMemberiivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000820318iivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2023-01-012023-03-310000820318iivi:IndustrialCustomerMember2023-01-012023-03-310000820318iivi:NetworkingSegmentMemberiivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMember2022-07-012023-03-310000820318iivi:IndustrialCustomerMemberiivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012023-03-310000820318iivi:IndustrialCustomerMemberus-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2022-07-012023-03-310000820318iivi:IndustrialCustomerMember2022-07-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2023-01-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2023-01-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:CommunicationsCustomerMember2023-01-012023-03-310000820318iivi:CommunicationsCustomerMember2023-01-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2022-07-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:CommunicationsCustomerMember2022-07-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:CommunicationsCustomerMember2022-07-012023-03-310000820318iivi:CommunicationsCustomerMember2022-07-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2023-01-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2023-01-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:ElectronicsCustomerMember2023-01-012023-03-310000820318iivi:ElectronicsCustomerMember2023-01-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2022-07-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:ElectronicsCustomerMember2022-07-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:ElectronicsCustomerMember2022-07-012023-03-310000820318iivi:ElectronicsCustomerMember2022-07-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2023-01-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2023-01-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:InstrumentationCustomerMember2023-01-012023-03-310000820318iivi:InstrumentationCustomerMember2023-01-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2022-07-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMemberiivi:InstrumentationCustomerMember2022-07-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMemberiivi:InstrumentationCustomerMember2022-07-012023-03-310000820318iivi:InstrumentationCustomerMember2022-07-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2023-01-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2022-07-012023-03-310000820318us-gaap:LandAndLandImprovementsMember2024-03-310000820318us-gaap:LandAndLandImprovementsMember2023-06-300000820318us-gaap:BuildingAndBuildingImprovementsMember2024-03-310000820318us-gaap:BuildingAndBuildingImprovementsMember2023-06-300000820318us-gaap:MachineryAndEquipmentMember2024-03-310000820318us-gaap:MachineryAndEquipmentMember2023-06-300000820318us-gaap:ConstructionInProgressMember2024-03-310000820318us-gaap:ConstructionInProgressMember2023-06-300000820318iivi:NetworkingSegmentMember2023-06-300000820318iivi:MaterialsSegmentMember2023-06-300000820318iivi:LasersSegmentMember2023-06-300000820318iivi:NetworkingSegmentMember2023-07-012024-03-310000820318iivi:MaterialsSegmentMember2023-07-012024-03-310000820318iivi:LasersSegmentMember2023-07-012024-03-310000820318iivi:NetworkingSegmentMember2024-03-310000820318iivi:MaterialsSegmentMember2024-03-310000820318iivi:LasersSegmentMember2024-03-310000820318iivi:LasersSegmentMember2023-06-300000820318iivi:LasersSegmentMember2024-03-310000820318iivi:TechnologyAndPatentsMember2024-03-310000820318iivi:TechnologyAndPatentsMember2023-06-300000820318us-gaap:TradeNamesMember2024-03-310000820318us-gaap:TradeNamesMember2023-06-300000820318us-gaap:CustomerListsMember2024-03-310000820318us-gaap:CustomerListsMember2023-06-300000820318iivi:TermLoanACreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRMember2023-07-012024-03-310000820318iivi:TermLoanACreditFacilityMember2024-03-310000820318iivi:TermLoanACreditFacilityMember2023-06-300000820318iivi:TermALoanFacilityAndRevolvingCreditFacilityMember2024-03-310000820318iivi:TermALoanFacilityAndRevolvingCreditFacilityMember2023-06-300000820318iivi:SecuredOvernightFinancingRateSOFRMemberiivi:TermLoanBCreditFacilityMember2023-07-012024-03-310000820318iivi:TermLoanBCreditFacilityMember2024-03-310000820318iivi:TermLoanBCreditFacilityMember2023-06-300000820318iivi:A130TermLoanDue2024Member2024-03-310000820318iivi:A130TermLoanDue2024Member2023-06-300000820318iivi:LocalLinesOfCreditMemberus-gaap:LineOfCreditMember2024-03-310000820318iivi:LocalLinesOfCreditMemberus-gaap:LineOfCreditMember2023-06-300000820318iivi:ConstructionLoanDue2030Member2024-03-310000820318iivi:ConstructionLoanDue2030Member2023-06-300000820318iivi:A500SeniorNotesDueDecember2029Member2024-03-310000820318iivi:A500SeniorNotesDueDecember2029Member2023-06-300000820318iivi:SeniorCreditFacilitiesMember2022-07-010000820318iivi:TermLoanACreditFacilityMember2022-07-010000820318iivi:TermLoanBCreditFacilityMember2022-07-010000820318us-gaap:RevolvingCreditFacilityMember2022-07-010000820318us-gaap:LetterOfCreditMember2022-07-010000820318iivi:TermAFacilityAndRevolvingCreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRFloorMember2023-03-312023-03-310000820318us-gaap:RevolvingCreditFacilityMemberiivi:TermAFacilityAndRevolvingCreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRFloorMember2023-03-312023-03-310000820318srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberiivi:TermAFacilityAndRevolvingCreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRMember2023-03-312023-03-310000820318srt:MinimumMemberiivi:TermAFacilityAndRevolvingCreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRMember2023-03-312023-03-310000820318iivi:TermAFacilityAndRevolvingCreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRMembersrt:MaximumMember2023-03-312023-03-310000820318us-gaap:RevolvingCreditFacilityMemberiivi:TermAFacilityAndRevolvingCreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRMembersrt:MaximumMember2023-03-312023-03-310000820318us-gaap:RevolvingCreditFacilityMemberiivi:SecuredOvernightFinancingRateSOFRMember2023-07-012024-03-310000820318iivi:SecuredOvernightFinancingRateSOFRMemberiivi:TermLoanACreditFacilityMember2023-07-012024-03-310000820318iivi:SecuredOvernightFinancingRateSOFRFloorMemberiivi:TermLoanBCreditFacilityMember2023-07-012024-03-310000820318iivi:SecuredOvernightFinancingRateSOFRMemberiivi:TermLoanBCreditFacilityMember2023-07-012024-03-310000820318us-gaap:SubsequentEventMemberiivi:SecuredOvernightFinancingRateSOFRFloorMemberiivi:TermLoanBCreditFacilityMember2024-04-022024-04-020000820318us-gaap:SubsequentEventMemberiivi:SecuredOvernightFinancingRateSOFRMemberiivi:TermLoanBCreditFacilityMember2024-04-022024-04-020000820318iivi:TermLoanBCreditFacilityMember2024-01-012024-03-310000820318iivi:TermLoanBCreditFacilityMember2023-07-012024-03-310000820318iivi:TermLoanBCreditFacilityMember2023-01-012023-03-310000820318iivi:TermLoanBCreditFacilityMember2022-07-012023-03-310000820318iivi:SeniorCreditFacilitiesMember2024-01-012024-03-310000820318iivi:SeniorCreditFacilitiesMember2023-07-012024-03-310000820318iivi:SeniorCreditFacilitiesMember2023-01-012023-03-310000820318iivi:SeniorCreditFacilitiesMember2022-07-012023-03-310000820318iivi:SeniorSecuredCreditFacilityMemberiivi:BankOfAmericaNAMember2022-07-012023-03-310000820318us-gaap:BridgeLoanMember2022-07-010000820318us-gaap:BridgeLoanMember2022-07-012023-03-310000820318iivi:CoherentIncMember2022-07-01iivi:loan0000820318iivi:CoherentIncMember2024-03-310000820318iivi:A130TermLoanDue2024Memberiivi:CoherentIncMember2022-07-010000820318iivi:CoherentIncMemberiivi:A100StateOfConnecticutTermLoanDue2023Member2022-07-010000820318us-gaap:LineOfCreditMemberiivi:CoherentIncMemberus-gaap:ForeignLineOfCreditMember2020-12-21iso4217:EUR0000820318us-gaap:LineOfCreditMemberiivi:CoherentIncMemberus-gaap:ForeignLineOfCreditMember2020-12-212020-12-210000820318us-gaap:LineOfCreditMemberus-gaap:ForeignLineOfCreditMember2020-12-210000820318iivi:A500SeniorNotesDueDecember2029Member2021-12-100000820318us-gaap:DebtInstrumentRedemptionPeriodOneMemberiivi:A500SeniorNotesDueDecember2029Member2021-12-102021-12-100000820318iivi:A500SeniorNotesDueDecember2029Memberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2021-12-102021-12-100000820318iivi:A500SeniorNotesDueDecember2029Memberus-gaap:DebtInstrumentRedemptionPeriodThreeMember2021-12-102021-12-100000820318iivi:A500SeniorNotesDueDecember2029Member2024-01-012024-03-310000820318iivi:A500SeniorNotesDueDecember2029Member2023-07-012024-03-310000820318iivi:A500SeniorNotesDueDecember2029Member2023-01-012023-03-310000820318iivi:A500SeniorNotesDueDecember2029Member2022-07-012023-03-310000820318us-gaap:ConvertiblePreferredStockSubjectToMandatoryRedemptionMember2024-03-310000820318iivi:SeriesB1ConvertiblePreferredStockMember2024-03-310000820318iivi:SeriesB2ConvertiblePreferredStockMember2024-03-310000820318iivi:UnderwrittenPublicOfferingMemberiivi:SeriesAMandatoryConvertiblePreferredStockMember2020-07-012020-07-310000820318us-gaap:CommonStockMember2023-07-032023-07-030000820318us-gaap:ConvertiblePreferredStockSubjectToMandatoryRedemptionMember2023-07-030000820318us-gaap:ConvertiblePreferredStockSubjectToMandatoryRedemptionMember2024-01-012024-03-310000820318us-gaap:ConvertiblePreferredStockSubjectToMandatoryRedemptionMember2023-01-012023-03-310000820318us-gaap:ConvertiblePreferredStockSubjectToMandatoryRedemptionMember2023-07-012024-03-310000820318us-gaap:ConvertiblePreferredStockSubjectToMandatoryRedemptionMember2022-07-012023-03-310000820318iivi:SeriesB1ConvertiblePreferredStockMember2021-03-012021-03-310000820318iivi:SeriesB1ConvertiblePreferredStockMember2021-03-31iivi:day0000820318srt:MinimumMemberiivi:SeriesB1ConvertiblePreferredStockMember2021-03-012021-03-310000820318srt:MaximumMemberiivi:SeriesB1ConvertiblePreferredStockMember2021-03-012021-03-310000820318iivi:SeriesB2ConvertiblePreferredStockMember2022-07-012022-07-010000820318iivi:SeriesB2ConvertiblePreferredStockMember2022-07-010000820318iivi:SeriesB2ConvertiblePreferredStockMembersrt:MinimumMember2022-07-012022-07-010000820318iivi:SeriesB2ConvertiblePreferredStockMembersrt:MaximumMember2022-07-012022-07-010000820318iivi:SeriesBRedeemableConvertiblePreferredStockMember2024-01-012024-03-310000820318iivi:SeriesBRedeemableConvertiblePreferredStockMember2023-01-012023-03-310000820318iivi:SeriesBRedeemableConvertiblePreferredStockMember2022-07-012023-03-310000820318us-gaap:CommonClassAMemberiivi:DensoCorporationMemberiivi:SiliconCarbideMember2023-12-042023-12-040000820318iivi:DensoCorporationMemberiivi:SiliconCarbideMember2023-10-102023-10-100000820318us-gaap:CommonClassAMemberiivi:MitsubishiElectricCorporationMemberiivi:SiliconCarbideMember2023-12-042023-12-040000820318iivi:MitsubishiElectricCorporationMemberiivi:SiliconCarbideMember2023-10-102023-10-100000820318iivi:SiliconCarbideMember2023-10-100000820318iivi:SiliconCarbideMemberiivi:MitsubishiElectricCorporationMember2023-10-100000820318iivi:SiliconCarbideMemberiivi:DensoCorporationMember2023-10-1000008203182023-10-102023-10-100000820318iivi:SiliconCarbideMemberus-gaap:NoncontrollingInterestMember2023-06-300000820318iivi:SiliconCarbideMemberus-gaap:NoncontrollingInterestMember2023-07-012024-03-310000820318iivi:SiliconCarbideMemberus-gaap:NoncontrollingInterestMember2024-03-310000820318us-gaap:SeriesAPreferredStockMember2024-01-012024-03-310000820318us-gaap:SeriesAPreferredStockMember2023-01-012023-03-310000820318us-gaap:SeriesAPreferredStockMember2023-07-012024-03-310000820318us-gaap:SeriesAPreferredStockMember2022-07-012023-03-310000820318iivi:CommonStockEquivalentsMember2024-01-012024-03-310000820318iivi:CommonStockEquivalentsMember2023-01-012023-03-310000820318iivi:CommonStockEquivalentsMember2023-07-012024-03-310000820318iivi:CommonStockEquivalentsMember2022-07-012023-03-310000820318iivi:CoherentConvertibleNotesMember2024-01-012024-03-310000820318iivi:CoherentConvertibleNotesMember2023-01-012023-03-310000820318iivi:CoherentConvertibleNotesMember2023-07-012024-03-310000820318iivi:CoherentConvertibleNotesMember2022-07-012023-03-310000820318us-gaap:ConvertiblePreferredStockMember2024-01-012024-03-310000820318us-gaap:ConvertiblePreferredStockMember2023-01-012023-03-310000820318us-gaap:ConvertiblePreferredStockMember2023-07-012024-03-310000820318us-gaap:ConvertiblePreferredStockMember2022-07-012023-03-310000820318us-gaap:RedeemablePreferredStockMember2024-01-012024-03-310000820318us-gaap:RedeemablePreferredStockMember2023-01-012023-03-310000820318us-gaap:RedeemablePreferredStockMember2023-07-012024-03-310000820318us-gaap:RedeemablePreferredStockMember2022-07-012023-03-31iivi:segment0000820318srt:ConsolidationEliminationsMember2024-01-012024-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMember2024-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2024-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2024-03-310000820318srt:ConsolidationEliminationsMember2024-03-310000820318srt:ConsolidationEliminationsMember2023-01-012023-03-310000820318iivi:NetworkingSegmentMemberus-gaap:OperatingSegmentsMember2023-03-310000820318iivi:MaterialsSegmentMemberus-gaap:OperatingSegmentsMember2023-03-310000820318us-gaap:OperatingSegmentsMemberiivi:LasersSegmentMember2023-03-310000820318srt:ConsolidationEliminationsMember2023-03-310000820318srt:ConsolidationEliminationsMember2023-07-012024-03-310000820318srt:ConsolidationEliminationsMember2022-07-012023-03-310000820318iivi:CoherentCorpOmnibusIncentivePlanMemberus-gaap:EmployeeStockMember2023-11-300000820318iivi:CoherentIncEquityIncentivePlanMemberus-gaap:EmployeeStockMember2024-03-310000820318iivi:CoherentIncEquityIncentivePlanMembersrt:MinimumMemberus-gaap:EmployeeStockMember2023-08-280000820318iivi:CoherentIncEquityIncentivePlanMembersrt:MaximumMemberus-gaap:EmployeeStockMember2023-08-280000820318iivi:CoherentIncEquityIncentivePlanMemberus-gaap:EmployeeStockMember2023-08-282023-08-280000820318iivi:StockOptionAndStockAppreciationRightsMember2024-01-012024-03-310000820318iivi:StockOptionAndStockAppreciationRightsMember2023-01-012023-03-310000820318iivi:StockOptionAndStockAppreciationRightsMember2023-07-012024-03-310000820318iivi:StockOptionAndStockAppreciationRightsMember2022-07-012023-03-310000820318iivi:RestrictedStockAwardsAndRestrictedStockUnitsMember2024-01-012024-03-310000820318iivi:RestrictedStockAwardsAndRestrictedStockUnitsMember2023-01-012023-03-310000820318iivi:RestrictedStockAwardsAndRestrictedStockUnitsMember2023-07-012024-03-310000820318iivi:RestrictedStockAwardsAndRestrictedStockUnitsMember2022-07-012023-03-310000820318iivi:PerformanceStockAndPerformanceStockUnitMember2024-01-012024-03-310000820318iivi:PerformanceStockAndPerformanceStockUnitMember2023-01-012023-03-310000820318iivi:PerformanceStockAndPerformanceStockUnitMember2023-07-012024-03-310000820318iivi:PerformanceStockAndPerformanceStockUnitMember2022-07-012023-03-310000820318us-gaap:EmployeeStockMember2024-01-012024-03-310000820318us-gaap:EmployeeStockMember2023-01-012023-03-310000820318us-gaap:EmployeeStockMember2023-07-012024-03-310000820318us-gaap:EmployeeStockMember2022-07-012023-03-310000820318us-gaap:InterestRateSwapMember2019-11-240000820318us-gaap:InterestRateSwapMember2022-06-300000820318us-gaap:InterestRateSwapMember2023-03-200000820318us-gaap:InterestRateSwapMember2024-03-310000820318us-gaap:InterestRateSwapMember2023-06-300000820318us-gaap:InterestRateCapMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-02-230000820318us-gaap:InterestRateCapMember2022-02-230000820318us-gaap:InterestRateCapMembersrt:MinimumMember2022-02-230000820318us-gaap:InterestRateCapMembersrt:MaximumMember2022-02-230000820318us-gaap:InterestRateCapMember2024-03-310000820318us-gaap:InterestRateCapMember2023-06-300000820318us-gaap:SeniorNotesMember2024-03-310000820318us-gaap:SeniorNotesMember2023-06-300000820318iivi:SiliconCarbideMember2024-03-310000820318iivi:OtherEntitiesMember2024-03-3100008203182014-08-3100008203182014-08-012024-02-210000820318us-gaap:AccumulatedTranslationAdjustmentMember2023-06-300000820318us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-06-300000820318us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-06-300000820318us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-06-300000820318us-gaap:AccumulatedTranslationAdjustmentMember2023-07-012024-03-310000820318us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012024-03-310000820318us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012024-03-310000820318us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-012024-03-310000820318us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012024-03-310000820318us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310000820318us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310000820318us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310000820318us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-310000820318iivi:May2023RestructuringPlanMember2024-01-012024-03-310000820318iivi:May2023RestructuringPlanMember2023-07-012024-03-310000820318iivi:May2023RestructuringPlanMember2022-07-012023-06-300000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2023-06-300000820318iivi:AssetWriteOffsMemberiivi:May2023RestructuringPlanMember2023-06-300000820318iivi:May2023RestructuringPlanMemberus-gaap:OtherRestructuringMember2023-06-300000820318iivi:May2023RestructuringPlanMember2023-06-300000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2023-07-012023-09-300000820318iivi:AssetWriteOffsMemberiivi:May2023RestructuringPlanMember2023-07-012023-09-300000820318iivi:May2023RestructuringPlanMemberus-gaap:OtherRestructuringMember2023-07-012023-09-300000820318iivi:May2023RestructuringPlanMember2023-07-012023-09-300000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2023-09-300000820318iivi:AssetWriteOffsMemberiivi:May2023RestructuringPlanMember2023-09-300000820318iivi:May2023RestructuringPlanMemberus-gaap:OtherRestructuringMember2023-09-300000820318iivi:May2023RestructuringPlanMember2023-09-300000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2023-10-012023-12-310000820318iivi:AssetWriteOffsMemberiivi:May2023RestructuringPlanMember2023-10-012023-12-310000820318iivi:May2023RestructuringPlanMemberus-gaap:OtherRestructuringMember2023-10-012023-12-310000820318iivi:May2023RestructuringPlanMember2023-10-012023-12-310000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2023-12-310000820318iivi:AssetWriteOffsMemberiivi:May2023RestructuringPlanMember2023-12-310000820318iivi:May2023RestructuringPlanMemberus-gaap:OtherRestructuringMember2023-12-310000820318iivi:May2023RestructuringPlanMember2023-12-310000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2024-01-012024-03-310000820318iivi:AssetWriteOffsMemberiivi:May2023RestructuringPlanMember2024-01-012024-03-310000820318iivi:May2023RestructuringPlanMemberus-gaap:OtherRestructuringMember2024-01-012024-03-310000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2024-03-310000820318iivi:AssetWriteOffsMemberiivi:May2023RestructuringPlanMember2024-03-310000820318iivi:May2023RestructuringPlanMemberus-gaap:OtherRestructuringMember2024-03-310000820318iivi:May2023RestructuringPlanMember2024-03-310000820318iivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMemberiivi:OtherAccruedLiabilitiesCurrentMember2024-03-310000820318us-gaap:OtherNoncurrentLiabilitiesMemberiivi:May2023RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2024-03-310000820318iivi:MaterialsSegmentMemberiivi:May2023RestructuringPlanMember2024-01-012024-03-310000820318iivi:MaterialsSegmentMemberiivi:May2023RestructuringPlanMember2023-07-012024-03-310000820318iivi:May2023RestructuringPlanMemberiivi:LasersSegmentMember2024-01-012024-03-310000820318iivi:May2023RestructuringPlanMemberiivi:LasersSegmentMember2023-07-012024-03-310000820318iivi:NetworkingSegmentMemberiivi:May2023RestructuringPlanMember2024-01-012024-03-310000820318iivi:NetworkingSegmentMemberiivi:May2023RestructuringPlanMember2023-07-012024-03-310000820318iivi:SynergyAndSiteConsolidationPlanMember2023-05-200000820318iivi:SynergyAndSiteConsolidationPlanMember2024-01-012024-03-310000820318iivi:SynergyAndSiteConsolidationPlanMember2023-07-012024-03-310000820318iivi:SynergyAndSiteConsolidationPlanMember2022-07-012023-06-300000820318us-gaap:EmployeeSeveranceMemberiivi:OtherAccruedLiabilitiesCurrentMemberiivi:SynergyAndSiteConsolidationPlanMember2024-03-310000820318us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:EmployeeSeveranceMemberiivi:SynergyAndSiteConsolidationPlanMember2024-03-310000820318iivi:LasersSegmentMemberiivi:SynergyAndSiteConsolidationPlanMember2024-01-012024-03-310000820318iivi:LasersSegmentMemberiivi:SynergyAndSiteConsolidationPlanMember2023-07-012024-03-310000820318iivi:CostOfGoodsAndServicesSoldMemberiivi:SynergyAndSiteConsolidationPlanMember2024-01-012024-03-310000820318iivi:CostOfGoodsAndServicesSoldMemberiivi:SynergyAndSiteConsolidationPlanMember2023-07-012024-03-310000820318iivi:InternalResearchAndDevelopmentExpensesMemberiivi:SynergyAndSiteConsolidationPlanMember2024-01-012024-03-310000820318iivi:InternalResearchAndDevelopmentExpensesMemberiivi:SynergyAndSiteConsolidationPlanMember2023-07-012024-03-310000820318us-gaap:SellingGeneralAndAdministrativeExpensesMemberiivi:SynergyAndSiteConsolidationPlanMember2024-01-012024-03-310000820318us-gaap:SellingGeneralAndAdministrativeExpensesMemberiivi:SynergyAndSiteConsolidationPlanMember2023-07-012024-03-31
\
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________________________________________________
FORM 10-Q
________________________________________________________________
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2024
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from                      to                     .
Commission File Number: 001-39375
________________________________________________________________
COHERENT CORP.
(Exact name of registrant as specified in its charter)
________________________________________________________________
Pennsylvania25-1214948
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
375 Saxonburg Boulevard16056
Saxonburg,PA(Zip Code)
(Address of principal executive offices)
Registrant’s telephone number, including area code: 724-352-4455
N/A
(Former name, former address and former fiscal year, if changed since last report)
________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueCOHRNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act       
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
At May 3, 2024, 152,461,013 shares of Common Stock, no par value, of the registrant were outstanding.


COHERENT CORP.
INDEX
Page No.
Condensed Consolidated Balance Sheets – March 31, 2024 and June 30, 2023 (Unaudited)
Condensed Consolidated Statements of Earnings (Loss) – Three and Nine Months Ended March 31, 2024 and 2023 (Unaudited)
Condensed Consolidated Statements of Comprehensive Income (Loss) – Three and Nine Months Ended March 31, 2024 and 2023 (Unaudited)
Condensed Consolidated Statements of Cash Flows – Nine Months Ended March 31, 2024 and 2023 (Unaudited)
Condensed Consolidated Statements of Equity and Mezzanine Equity – Three and Nine Months Ended March 31, 2024 and 2023 (Unaudited)

2

PART I - FINANCIAL INFORMATION
Item 1.    FINANCIAL STATEMENTS
Coherent Corp. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
($000)March 31,
2024
June 30,
2023
Assets
Current Assets
Cash and cash equivalents$898,578 $821,310 
Restricted cash, current183,611 12,023 
Accounts receivable - less allowance for doubtful accounts of $10,605 at March 31, 2024 and $8,005 at June 30, 2023
955,644 901,531 
Inventories1,291,703 1,272,333 
Prepaid and refundable income taxes18,971 28,271 
Prepaid and other current assets201,727 216,530 
Total Current Assets3,550,234 3,251,998 
Property, plant & equipment, net1,851,383 1,782,035 
Goodwill4,493,225 4,512,700 
Other intangible assets, net3,586,302 3,814,684 
Deferred income taxes39,485 37,748 
Restricted cash, non-current710,270 4,233 
Other assets289,513 307,735 
Total Assets$14,520,412 $13,711,133 
Liabilities, Mezzanine Equity and Equity
Current Liabilities
Current portion of long-term debt$75,469 $74,836 
Accounts payable593,504 405,308 
Accrued compensation and benefits177,399 175,564 
Operating lease current liabilities38,321 38,271 
Accrued income taxes payable116,455 74,488 
Other accrued liabilities309,480 310,281 
Total Current Liabilities1,310,628 1,078,748 
Long-term debt4,082,656 4,234,962 
Deferred income taxes748,453 780,307 
Operating lease liabilities138,305 140,748 
Other liabilities201,240 247,402 
Total Liabilities6,481,282 6,482,167 
Mezzanine Equity
Series B redeemable convertible preferred stock, no par value, 5% cumulative; issued - 215,000 shares at March 31, 2024 and June 30, 2023; redemption value - $2,397,885 and $2,309,966, respectively
2,333,361 2,241,415 
Shareholders' Equity
Series A preferred stock, no par value, 6% cumulative; issued - 0 and 2,300,000 shares at March 31, 2024 and June 30, 2023, respectively
 445,319 
Common stock, no par value; authorized - 300,000,000 shares; issued - 167,990,097 shares at March 31, 2024; 154,719,413 shares at June 30, 2023
4,835,261 3,781,211 
Accumulated other comprehensive income
67,352 109,726 
Retained earnings744,792 944,416 
5,647,405 5,280,672 
Treasury stock, at cost; 15,572,135 shares at March 31, 2024 and 15,135,711 shares at June 30, 2023
(311,953)(293,121)
Total Coherent Corp. Shareholders’ Equity5,335,452 4,987,551 
Noncontrolling interests (NCI)370,317  
Total Equity5,705,769 4,987,551 
Total Liabilities, Mezzanine Equity and Equity$14,520,412 $13,711,133 
See Notes to Condensed Consolidated Financial Statements.
3

Coherent Corp. and Subsidiaries
Condensed Consolidated Statements of Earnings (Loss) (Unaudited)
($000, except per share data)

Three Months Ended
March 31,
20242023
Revenues$1,208,809 $1,240,194 
Costs, Expenses, and Other Expense (Income)
Cost of goods sold842,322 820,038 
Internal research and development127,485 126,382 
Selling, general and administrative205,167 226,386 
Restructuring charges11,530  
Interest expense72,753 75,183 
Other income, net
(18,597)(3,048)
Total Costs, Expenses, & Other Expense
1,240,660 1,244,941 
Loss Before Income Taxes
(31,851)(4,747)
Income Tax Benefit
(16,121)(7,293)
Net Earnings (Loss)
(15,730)2,546 
Net Loss Attributable to Noncontrolling Interests(2,543) 
Net Earnings (Loss) Attributable to Coherent Corp.(13,187)2,546 
Less: Dividends on Preferred Stock31,193 36,071 
Net Loss Available to the Common Shareholders
$(44,380)$(33,525)
Basic Loss Per Share
$(0.29)$(0.24)
Diluted Loss Per Share
$(0.29)$(0.24)
See Notes to Condensed Consolidated Financial Statements.

4

Coherent Corp. and Subsidiaries
Condensed Consolidated Statements of Earnings (Loss) (Unaudited)
($000, except per share data)

Nine Months Ended
March 31,
20242023
Revenues$3,393,326 $3,955,049 
Costs, Expenses, and Other Expense (Income)
Cost of goods sold2,369,303 2,680,131 
Internal research and development352,136 376,257 
Selling, general and administrative626,027 780,551 
Restructuring charges12,978  
Interest expense220,689 207,976 
Other (income) expense, net
(30,252)32,253 
Total Costs, Expenses, & Other Expense
3,550,881 4,077,168 
Loss Before Income Taxes
(157,555)(122,119)
Income Tax Benefit
(45,816)(40,895)
Net Loss
(111,739)(81,224)
Net Loss Attributable to Noncontrolling Interests(4,027) 
Net Loss Attributable to Coherent Corp. (107,712)(81,224)
Less: Dividends on Preferred Stock91,946 107,537 
Net Loss Available to the Common Shareholders
$(199,658)$(188,761)
Basic Loss Per Share
$(1.32)$(1.38)
Diluted Loss Per Share
$(1.32)$(1.38)
See Notes to Condensed Consolidated Financial Statements.

5

Coherent Corp. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
($000)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024202320242023
Net Earnings (Loss)
$(15,730)$2,546 $(111,739)$(81,224)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments(146,770)58,141 (27,885)157,805 
Change in fair value of interest rate swap, net of taxes of $(1,193) and $(4,665) for the three and nine months ended March 31, 2024, respectively; and $(1,712) and $1,649 for the three and nine months ended March 31, 2023, respectively
(4,359)(6,251)(17,034)6,019 
Change in fair value of interest rate cap, net of taxes of $3,104 and $(40) for
the three and nine months ended March 31, 2024, respectively; and $(2,200) and $2,032 for the three and nine months ended March 31, 2023, respectively
11,337 (8,275)(379)7,646 
Pension adjustment, net of taxes of $0 for the three and nine months ended March 31, 2024 and March 31, 2023
476 709 824 1,151 
Comprehensive Income (Loss)
(155,046)46,870 (156,213)91,397 
Comprehensive Loss Attributable to Noncontrolling Interests(2,543) (4,027) 
Foreign Currency Translation Adjustments Attributable to Noncontrolling Interests(294) 771  
Comprehensive Income (Loss) Attributable to Coherent Corp.$(152,209)$46,870 $(152,957)$91,397 
See Notes to Condensed Consolidated Financial Statements.
6

Coherent Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
($000)
Nine Months Ended March 31,
20242023
Cash Flows from Operating Activities
Net loss
$(111,739)$(81,224)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation199,693 197,469 
Amortization216,420 280,667 
Share-based compensation expense97,752 123,674 
Amortization of discount on convertible debt and debt issuance costs13,256 13,690 
Non-cash restructuring charges4,858  
Loss on disposal of property, plant and equipment262  
Unrealized gains on foreign currency remeasurements and transactions(3,852)(945)
Loss (earnings) from equity investments523 (435)
Deferred income taxes(140,727)(121,277)
Loss on debt extinguishment 6,835 
Increase (decrease) in cash from changes in (net of effect of acquisitions):
Accounts receivable(52,388)50,887 
Inventories(21,256)75,096 
Accounts payable161,366 (78,985)
Contract liabilities(39,103)13,177 
Income taxes36,960 18,478 
Accrued compensation and benefits1,835 (54,893)
Other operating assets and liabilities19,544 10,279 
Net cash provided by operating activities383,404 452,493 
Cash Flows from Investing Activities
Additions to property, plant & equipment(246,909)(342,999)
Purchases of businesses, net of cash acquired (5,488,556)
Other investing activities(2,114)(2,261)
Net cash used in investing activities(249,023)(5,833,816)
Cash Flows from Financing Activities
Sale of shares to noncontrolling interests1,000,000  
Proceeds from borrowings of Term A Facility 850,000 
Proceeds from borrowings of Term B Facility 2,800,000 
Proceeds from borrowings of revolving credit facilities18,966 65,000 
Proceeds from issuance of Series B Preferred Shares 1,400,000 
Payments on existing debt(165,094)(1,144,025)
Payments on borrowings under revolving credit facilities(18,642)(65,000)
Payments on convertible notes (3,561)
Debt issuance costs (126,516)
Equity issuance costs(31,840)(42,000)
Proceeds from exercises of stock options and purchases of stock under employee stock purchase plan36,097 21,509 
Payments in satisfaction of employees' minimum tax obligations(18,823)(51,836)
Cash dividends paid (20,700)
Other financing activities(755)(866)
Net cash provided by financing activities819,909 3,682,005 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash603 22,532 
7

Net increase (decrease) in cash, cash equivalents, and restricted cash
954,893 (1,676,786)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period837,566 2,582,371 
Cash, Cash Equivalents, and Restricted Cash at End of Period$1,792,459 $905,585 
Supplemental Information
Cash paid for interest$224,656 $190,672 
Cash paid for income taxes$53,803 $63,485 
Additions to property, plant & equipment included in accounts payable$66,040 $45,425 
Non-Cash Investing and Financing Activities
Conversion of Series A preferred stock to common stock$445,319 $ 
See Notes to Condensed Consolidated Financial Statements.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows. At March 31, 2024, we had $894 million of restricted cash.

March 31,
20242023
Cash and cash equivalents$898,578 $884,352 
Restricted cash, current183,611 16,676 
Restricted cash, non-current710,270 4,557 
Total cash, cash equivalents, and restricted cash shown in the Condensed Consolidated Statements of Cash Flows$1,792,459 $905,585 

8

Coherent Corp and Subsidiaries
Condensed Consolidated Statements of Equity and Mezzanine Equity (Unaudited)
($000, including share amounts)
Common StockPreferred StockAOCIRetained EarningsTreasury StockNCITotalMezzanine Equity
SharesAmountSharesAmountSharesAmountPref SharesAmount
Balance - June 30, 2023154,721 $3,781,211 2,300 $445,319 $109,726 $944,416 (15,137)$(293,121)$ $4,987,551 215 $2,241,415 
Share-based and deferred compensation activities1,804 60,748 — — — — (366)(13,932)— 46,816 — — 
Conversion of Series A preferred stock10,240 445,319 (2,300)(445,319)— — — — —  — — 
Net loss— — — — — (67,534)— — — (67,534)— — 
Foreign currency translation adjustments— — — — (107,903)— — — — (107,903)— — 
Change in fair value of interest rate swap, net of taxes of $(1,277)
— — — — (4,662)— — — — (4,662)— — 
Change in fair value of interest rate cap, net of taxes of $2,145
— — — — 7,600 — — — — 7,600 — — 
Pension adjustment, net of taxes of $0
— — — — 291 — — — — 291 — — 
Dividends— — — — — (30,173)— — — (30,173)— 30,173 
Balance - September 30, 2023166,765 $4,287,278  $ $5,052 $846,709 (15,503)$(307,053)$ $4,831,986 215 $2,271,588 
Share-based and deferred compensation activities544 25,184 — — — — (47)(3,633)— 21,551 — — 
Net loss— — — — — (26,991)— — (1,484)(28,475)— — 
Foreign currency translation adjustments— — — — 225,723 — — — 1,065 226,788 — — 
Change in fair value of interest rate swap, net of taxes of $(1,193)
— — — — (8,013)— — — — (8,013)— — 
Change in fair value of interest rate cap, net of taxes of $3,104
— — — — (19,316)— — — — (19,316)— — 
Pension adjustment, net of taxes of $0
— — — — 57 — — — — 57 — — 
Dividends— — — — — (30,580)— — — (30,580)— 30,580 
Sale of shares to noncontrolling interests, net of issuance costs and taxes— 473,614 — — 2,871 — — — 373,573 850,058 — — 
Balance - December 31, 2023167,309 $4,786,076  $ $206,374 $789,138 (15,550)$(310,686)$373,154 $5,844,056 215 $2,302,168 
Share-based and deferred compensation activities683 49,185 — — — — (23)(1,267)— 47,918 — — 
Net earnings— — — — — (13,187)— — (2,543)(15,730)— — 
Foreign currency translation adjustments— — — — (146,476)— — — (294)(146,770)— — 
Change in fair value of interest rate swap, net of taxes of $(1,193)
— — — — (4,359)— — — — (4,359)— — 
Change in fair value of interest rate cap, net of taxes of $3,104
— — — — 11,337 — — — — 11,337 — — 
Pension adjustment, net of taxes of $0
— — — — 476 — — — — 476 — — 
Dividends— — — — — (31,159)— — — (31,159)— 31,193 
Balance - March 31, 2024167,992 $4,835,261  $ $67,352 $744,792 (15,573)$(311,953)$370,317 $5,705,769 215 $2,333,361 


9

Common StockPreferred StockAccumulated Other Comprehensive Income (Loss)Retained EarningsTreasury StockTotalMezzanine Equity
SharesAmountSharesAmountSharesAmountPreferred SharesAmount
Balance - June 30, 2022120,923 $2,064,552 2,300 $445,319 $(2,167)$1,348,125 (13,973)$(239,354)$3,616,475 75 $766,803 
Share-based and deferred compensation activities2,398 61,431 — — — — (830)(40,860)20,571 — — 
Coherent acquisition22,588 1,207,591 — — — — — — 1,207,591 — — 
Convertible debt conversions7,181 337,940 — — — — — — 337,940 — — 
Net loss— — — — — (38,698)— — (38,698)— — 
Foreign currency translation adjustments— — — — (132,371)— — — (132,371)— — 
Change in fair value of interest rate swap, net of taxes of $3,452
— — — — 12,604 — — — 12,604 — — 
Change in fair value of interest rate cap, net of taxes of $5,440
— — — — 20,464 — — — 20,464 — — 
Pension adjustment, net of taxes $0
— — — — 39 — — — 39 — — 
Issuance of Series B shares— — — — — — — — — 140 1,358,000 
Dividends— — — — — (35,577)— — (35,577)— 28,677 
Balance - September 30, 2022153,090 $3,671,514 2,300 $445,319 $(101,431)$1,273,850 (14,803)$(280,214)$5,009,038 215 $2,153,480 
Share-based and deferred compensation activities779 32,745 — — — — (266)(9,551)23,194 — — 
Net loss— — — — — (45,072)— — (45,072)— — 
Foreign currency translation adjustments— — — — 232,035 — — — 232,035 — — 
Change in fair value of interest rate cap, net of $(1,208)
— — — — (4,543)— — — (4,543)— — 
Change in fair value of interest rate swap, net of taxes of $(92)
— — — — (334)— — — (334)— — 
Pension adjustment, net of taxes $0
— — — — 403 — — — 403 — — 
Dividends— — — — — (35,931)— — (35,931)— 28,992 
Balance - December 31, 2022153,869 $3,704,259 2,300 $445,319 $126,130 $1,192,847 (15,069)$(289,765)$5,178,790 215 $2,182,471 
Share-based and deferred compensation activities501 51,151 — — — — (29)(1,304)49,847 — — 
Net earnings— — — — — 2,546 — — 2,546 — — 
Foreign currency translation adjustments— — — — 58,141 — — — 58,141 — — 
Change in fair value of interest rate swap, net of taxes of $(1,712)
— — — — (6,251)— — — (6,251)— — 
Change in fair value of interest rate cap, net of taxes $(2,200)
— — — — (8,275)— — — (8,275)— — 
Pension adjustment, net of taxes $0
— — — — 709 — — — 709 — — 
Dividends— — — — — (36,071)— — (36,071)— 29,171 
Balance - March 31, 2023154,370 $3,755,410 2,300 $445,319 $170,454 $1,159,322 $(15,098)$(291,069)$5,239,436 215 $2,211,642 
See Notes to Condensed Consolidated Financial Statements.
10

Coherent Corp. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 1.    Basis of Presentation
The condensed consolidated financial statements of Coherent Corp. (“Coherent”, the “Company”, “we”, “us” or “our”) for the three and nine months ended March 31, 2024 and 2023 are unaudited. In the opinion of management, all adjustments considered necessary for a fair presentation for the periods presented have been included. All adjustments are of a normal recurring nature unless disclosed otherwise. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K dated August 18, 2023. The condensed consolidated results of operations for the three and nine months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full fiscal year. The Condensed Consolidated Balance Sheet information as of June 30, 2023 was derived from the Company’s audited consolidated financial statements.
Certain prior year amounts have been reclassified for consistency with the current year presentation.
Noncontrolling Interests
The Company accounts for noncontrolling interests in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the Condensed Consolidated Balance Sheets and the consolidated net income (loss) attributable to its noncontrolling interests be clearly identified and presented on the face of the Condensed Consolidated Statements of Earnings (Loss) and Condensed Consolidated Statements of Comprehensive Income (Loss). See Note 11. Noncontrolling Interests for further information on the noncontrolling interests in our Silicon Carbide LLC subsidiary.
Note 2.    Recently Issued Financial Accounting Standards
In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the impact this will have on the Company’s condensed consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, on either a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.
In March 2024, the SEC issued the final rule under SEC Release No. 33-11275 and 34-99678, “The Enhancement and Standardization of Climate-Related Disclosures for Investors,” requiring public companies to provide certain climate-related information in their registration statements and annual reports. The final rules will require information about a company’s climate-related risks that have materially impacted or are reasonably likely to have a material impact on its business strategy, results of operations, or financial condition, and the actual and potential material impacts of any identified climate-related risks on the company’s strategy, business model and outlook, as well as relating to assessment, management, oversight and mitigation of such material risks, material climate-related targets and goals, and material greenhouse gas emissions. Additionally, certain disclosures related to severe weather events and other natural conditions will be required in the audited financial statements. The first phase of the final rule is effective for fiscal years beginning in 2025. Disclosure for prior periods is only required if it was previously disclosed in an SEC filing. On April 4, 2024, the SEC voluntarily stayed implementation of the final rule to facilitate the orderly judicial resolution of pending legal challenges to the rule. We are currently evaluating the impact on our disclosures of adopting this new pronouncement.
Note 3.    Revenue from Contracts with Customers
We believe that disaggregating revenue by end market provides the most relevant information regarding the nature, amount, timing, and uncertainty of revenues and cash flows.
11


The following tables summarize disaggregated revenue by market ($000):
Three Months Ended March 31, 2024Nine Months Ended March 31, 2024
NetworkingMaterialsLasersTotalNetworkingMaterialsLasersTotal
Industrial$16,361 $134,516 $270,301 $421,178 $47,072 $404,847 $796,961 $1,248,880 
Communications593,223 22,568  615,791 1,538,847 56,804  1,595,651 
Electronics1,643 71,970  73,613 4,820 247,314  252,134 
Instrumentation7,597 9,928 80,702 98,227 25,169 28,335 243,157 296,661 
Total Revenues$618,824 $238,982 $351,003 $1,208,809 $1,615,908 $737,300 $1,040,118 $3,393,326 
Three Months Ended March 31, 2023Nine Months Ended March 31, 2023
NetworkingMaterialsLasersTotalNetworkingMaterialsLasersTotal
Industrial$17,570 $156,846 $263,789 $438,205 $52,189 $450,383 $846,881 $1,349,453 
Communications521,291 17,014  538,305 1,664,205 59,553  1,723,758 
Electronics2,849 136,229  139,078 9,674 509,803  519,477 
Instrumentation9,389 13,680 101,537 124,606 30,259 42,070 290,032 362,361 
Total Revenues$551,099 $323,769 $365,326 $1,240,194 $1,756,327 $1,061,809 $1,136,913 $3,955,049 
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 obligations have been satisfied. During the nine months ended March 31, 2024, we recognized revenue of $78 million related to customer payments that were included as contract liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2023. We had $110 million of contract liabilities recorded in the Condensed Consolidated Balance Sheet as of March 31, 2024. As of March 31, 2024, $96 million of deferred revenue is included within other accrued liabilities, and $14 million is included within other liabilities on the Condensed Consolidated Balance Sheet.
Note 4.    Inventories
The components of inventories were as follows ($000):
March 31,
2024
June 30,
2023
Raw materials$427,947 $462,436 
Work in progress628,450 549,992 
Finished goods235,306 259,905 
Total inventories$1,291,703 $1,272,333 
Note 5.    Property, Plant and Equipment
Property, plant and equipment consists of the following ($000):
March 31,
2024
June 30,
2023
Land and improvements$69,578 $69,639 
Buildings and improvements805,680 780,204 
Machinery and equipment1,998,349 1,879,136 
Construction in progress404,645 287,990 
Finance lease right-of-use asset25,000 25,000 
3,303,252 3,041,969 
Less accumulated depreciation(1,451,869)(1,259,934)
Property, plant, and equipment, net$1,851,383 $1,782,035 
12

Note 6.    Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill were as follows ($000):
Nine Months Ended March 31, 2024
NetworkingMaterials LasersTotal
Balance-beginning of period$1,036,204 $247,695 $3,228,801 $4,512,700 
Foreign currency translation457 224 (20,156)(19,475)
Balance-end of period$1,036,661 $247,919 $3,208,645 $4,493,225 
We test goodwill for impairment annually during the fourth quarter, or more frequently when events or changes in circumstances indicate that fair value is below carrying value.
As part of our annual assessment in the fourth quarter of fiscal 2023, we determined that the estimated fair value of our Lasers reporting unit exceeded its carrying value by approximately 10%. As of March 31, 2024, the carrying amount of goodwill within this reporting unit was $3.2 billion. The reporting unit’s estimated fair value is sensitive to changes in the significant assumptions used in the analysis including forecasted revenues and related gross margins. If the reporting unit does not perform to expected levels and realize the expected benefit from the multi-year synergy and site consolidation plans, or there are adverse changes in certain macroeconomic factors, the related goodwill may be at risk for impairment in the future.
The gross carrying amount and accumulated amortization of our intangible assets other than goodwill were as follows ($000):
March 31, 2024June 30, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net
Book
Value
Gross
Carrying
Amount
Accumulated
Amortization
Net Book Value
Technology$1,657,692 $(363,999)$1,293,693 $1,661,263 $(270,786)$1,390,477 
Trade Names438,471 (8,471)430,000 438,470 (8,279)430,191 
Customer Lists2,323,593 (460,984)1,862,609 2,333,360 (339,344)1,994,016 
Total$4,419,756 $(833,454)$3,586,302 $4,433,093 $(618,409)$3,814,684 
Note 7.    Debt
The components of debt as of the dates indicated were as follows ($000):
March 31,
2024
June 30,
2023
Term A Facility, interest at adjusted SOFR, as defined, plus