Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 29, 2018 | Oct. 26, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | VIAVI SOLUTIONS INC. | |
Entity Central Index Key | 912,093 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 228,422,336 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Revenues: | ||
Total net revenue | $ 268.5 | $ 190.9 |
Cost of revenues: | ||
Amortization of acquired technologies | 9.4 | 4.1 |
Total cost of revenues | 118.1 | 78.2 |
Gross profit | 150.4 | 112.7 |
Operating expenses: | ||
Research and development | 42.6 | 29.1 |
Selling, general and administrative | 84.4 | 72.3 |
Amortization of other intangibles | 9.8 | 3.1 |
Restructuring and related charges | 14.8 | 1.5 |
Total operating expenses | 151.6 | 106 |
(Loss) income from operations | (1.2) | 6.7 |
Interest and other income, net | 1.9 | 0.2 |
Loss on sale of investments | (0.2) | 0 |
Interest expense | (10.1) | (12.5) |
Loss before taxes | (9.6) | (5.6) |
Provision for income taxes | 5.7 | 2 |
Net loss | $ (15.3) | $ (7.6) |
Net loss per share: | ||
Earnings Per Share, Basic | $ (0.07) | $ (0.03) |
Diluted (in dollars per share) | $ (0.07) | $ (0.03) |
Shares used in per-share calculation - basic (in shares) | 227.2 | 228.1 |
Shares used in per-share calculation - diluted (in shares) | 227.2 | 228.1 |
Product | ||
Revenues: | ||
Total net revenue | $ 241.1 | $ 165.1 |
Cost of revenues: | ||
Cost of revenue | 97.9 | 62.6 |
Service | ||
Revenues: | ||
Total net revenue | 27.4 | 25.8 |
Cost of revenues: | ||
Cost of revenue | $ 10.8 | $ 11.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (15.3) | $ (7.6) |
Other comprehensive (loss) income: | ||
Net change in cumulative translation adjustment, net of tax | (13.1) | 10.3 |
Net change in available-for-sale investments, net of tax: | ||
Unrealized holding gain arising during period | 0.1 | 0 |
Plus: reclassification adjustments included in net income | 0.2 | 0 |
Net change in defined benefit obligation, net of tax: | ||
Amortization of actuarial losses | 0.6 | 0.4 |
Net change in accumulated other comprehensive (loss) income | (12.2) | 10.7 |
Comprehensive (loss) income | $ (27.5) | $ 3.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 600.7 | $ 611.4 |
Short-term investments | 51.7 | 169.3 |
Restricted cash | 7.2 | 7.3 |
Accounts receivable, net | 224.1 | 218.6 |
Inventories, net | 89.5 | 92.3 |
Prepayments and other current assets | 53 | 56.3 |
Total current assets | 1,026.2 | 1,155.2 |
Property, plant and equipment, net | 170.8 | 170.5 |
Goodwill | 341.1 | 336.3 |
Intangibles, net | 216.6 | 235.1 |
Deferred income taxes | 113.4 | 114.3 |
Other non-current assets | 20.7 | 15.4 |
Total assets | 1,888.8 | 2,026.8 |
Current liabilities: | ||
Accounts payable | 60.3 | 55.5 |
Accrued payroll and related expenses | 57.7 | 52.8 |
Deferred revenue | 61.5 | 60.6 |
Accrued expenses | 32.6 | 30.1 |
Current portion of long-term debt | 142.7 | 275.3 |
Other current liabilities | 74.8 | 78.9 |
Total current liabilities | 429.6 | 553.2 |
Long-term debt, net of current portion | 563.1 | 557.9 |
Other non-current liabilities | 186.5 | 180.8 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred Stock, $0.001 par value; 1 million shares authorized; 1 share at September 29, 2018 and June 30, 2018 issued and outstanding | 0 | 0 |
Common Stock, $0.001 par value; 1 billion shares authorized; 228 million shares at September 29, 2018 and 227 million shares at June 30, 2018, issued and outstanding | 0.2 | 0.2 |
Additional paid-in capital | 70,218.6 | 70,216.2 |
Accumulated deficit | (69,394.1) | (69,378.6) |
Accumulated other comprehensive (loss) | (115.1) | (102.9) |
Total stockholders’ equity | 709.6 | 734.9 |
Total liabilities and stockholders’ equity | $ 1,888.8 | $ 2,026.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 29, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 1 | 1 |
Preferred Stock, shares outstanding (in shares) | 1 | 1 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common Stock, shares issued (in shares) | 228,000,000 | 227,000,000 |
Common Stock, shares outstanding (in shares) | 228,000,000 | 227,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | ||
OPERATING ACTIVITIES: | |||
Net loss | $ (15.3) | $ (7.6) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation expense | 9.9 | 8.4 | |
Amortization of acquired technologies and other intangibles | 19.2 | 7.2 | |
Stock-based compensation | 8.1 | 7.5 | |
Amortization of debt issuance costs and accretion of debt discount | 6.9 | 9.8 | |
Amortization of discount and premium on investments, net | (0.2) | (0.1) | |
Loss on disposal of assets | 0.4 | 0.8 | |
Loss on extinguishment of debt | 0 | 3.6 | |
Other | (0.1) | 0.7 | |
Changes in operating assets and liabilities, net of impact of acquisitions of businesses: | |||
Accounts receivable | (6.6) | 4.7 | |
Inventories | 1.4 | (12.1) | |
Other current and non-currents assets | (3) | 9 | |
Accounts payable | 3.7 | 4.5 | |
Income taxes payable | 1.3 | (5.8) | |
Deferred revenue, current and non-current | 1.1 | (5.3) | |
Deferred taxes, net | (1.9) | (4.6) | |
Accrued payroll and related expenses | 2.6 | (2) | |
Accrued expenses and other current and non-current liabilities | 0.1 | (7.7) | |
Net cash provided by operating activities | 27.6 | 11 | |
INVESTING ACTIVITIES: | |||
Purchases of available-for-sale investments | 0 | (150.4) | |
Maturities of available-for-sale investments | 36.5 | 140.6 | |
Sales of available-for-sale investments | 81 | 11.2 | |
Capital expenditures | (12.1) | (8.4) | |
Proceeds from the sale of assets | 1.6 | 0.9 | |
Acquisition of businesses, net of cash acquired | 0 | (55.3) | |
Net cash provided by (used in) investing activities | 107 | (61.4) | |
FINANCING ACTIVITIES: | |||
Payment of debt issuance costs | (0.5) | 0 | |
Repurchase and retirement of common stock | 0 | (9.2) | |
Withholding tax payment on vesting of restricted stock awards | (5.5) | (5.2) | |
Repurchase and redemption of convertible debt | (134.3) | (162) | |
Payment of financing obligations | (0.2) | (0.7) | |
Proceeds from exercise of employee stock options and employee stock purchase plan | 2.1 | 2.5 | |
Net cash used in financing activities | (138.4) | (174.6) | |
Effect of exchange rates on cash and cash equivalents | (7.2) | 9.1 | |
Net decrease in cash, cash equivalents and restricted cash | (11) | (215.9) | |
Cash, cash equivalents and restricted cash at the beginning of the period | [1] | 624.3 | 1,022.4 |
Cash, cash equivalents and restricted cash at the end of the period | [2] | $ 613.3 | $ 806.5 |
[1] | These amounts include both current and non-current balances of restricted cash totaling $12.9 million and $18.0 million as of September 29, 2018 and September 30, 2017, respectively, which primarily represent collateral for letters of credit and performance bonds for the benefit of third parties. | ||
[2] | These amounts include both current and non-current balances of restricted cash totaling $12.6 million and $13.7 million as of September 29, 2018 and September 30, 2017, respectively, which primarily represent collateral for letters of credit and performance bonds for the benefit of third parties. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jul. 01, 2017 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 12.6 | $ 12.9 | $ 13.7 | $ 18 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The financial information for Viavi Solutions Inc. (“VIAVI” also referred to as “the Company”, “we”, “our” and “us”) for the three months ended September 29, 2018 and September 30, 2017 is unaudited, and includes all normal and recurring adjustments Company management considers necessary for a fair statement of the financial information set forth herein. The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“ U.S. GAAP ”) for interim financial information and rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual consolidated financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 . Other than updates to the Company’s revenue recognition policy under Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers , as disclosed in “ Note 2. Recently Issued Accounting Pronouncements ” and “ Note 3. Revenue ”, there have been no material changes to the Company’s accounting policies during the three months ended September 29, 2018 , as compared to the significant accounting policies presented in “Note 1. Basis of Presentation” of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report for the year ended June 30, 2018 on Form 10-K filed with the SEC on August 28, 2018. The balance sheet as of June 30, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 29, 2018 and September 30, 2017 may not be indicative of results for the fiscal year ending June 29, 2019 or any future periods. Fiscal Years The Company utilizes a 52 - 53 week fiscal year ending on the Saturday closest to June 30th. The Company’s fiscal 2019 is a 52 -week year ending on June 29, 2019 . The Company’s fiscal 2018 was a 52 -week year ending on June 30, 2018 . Principles of Consolidation The consolidated financial statements include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Use of Estimates The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenues and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and assumptions about future periods that are believed to be reasonable based on available information. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect readily available current information. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Sep. 29, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Adopted In November 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) that requires a statement of cash flows to present the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. In the three months ended September 29, 2018, we adopted this ASU using a retrospective transition method. Accordingly, our consolidated statement of cash flows for the three months ended September 30, 2017, as presented herein, has been restated to comply with the new requirements. In May 2014, the FASB issued new authoritative guidance related to revenue recognition from contracts with customers, ASC 606 - Revenue from Contracts with Customers (the “ revenue standard ”). The new guidance provides a unified model to determine when and how revenue is recognized. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The Company adopted the new standard effective in the first quarter of fiscal 2019 using the retrospective transition method, which requires the Company to recast each prior period presented consistent with the new guidance. Refer to “ Note 3. Revenue ” of the Consolidated Financial Statements for a summary of significant policies related to the new accounting standards. As part of the adoption, certain prior period amounts have been adjusted or reclassified within the consolidated financial statements. The following table presents the impact of the revenue standard adoption to select line items of our Consolidated Balance Sheet as of June 30, 2018 , ( in millions ) as follows: June 30, 2018 As Reported Adjustment As Adjusted ASSETS Accounts receivable, net $ 217.5 $ 1.1 $ 218.6 Prepayments and other assets 54.8 1.5 56.3 Deferred income taxes 114.5 (0.2 ) 114.3 Other non-current assets 13.6 1.8 15.4 Total assets $ 2,022.6 $ 4.2 $ 2,026.8 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 71.9 (11.3 ) 60.6 Accrued payroll and related expenses 51.4 1.4 52.8 Other current liabilities 77.0 1.9 78.9 Other non-current liabilities 182.8 (2.0 ) 180.8 Total stockholders’ equity 720.7 14.2 734.9 Total liabilities and stockholders’ equity $ 2,022.6 $ 4.2 $ 2,026.8 The primary impacts to the previously issued amounts are as follows: Accounts receivable, net: Adoption of the new revenue standard resulted in an increase to accounts receivable, net primarily due to two items: 1) The return rights provision, which represents a liability for expected customer returns, was previously presented as a reduction to accounts receivable and is now presented in other current liabilities; and 2) Contract assets which are recorded when a conditional right to consideration exists and transfer of control has occurred in advance of the Company’s right to invoice. Upon adoption of ASC 606, contract assets, which were previously presented as a component of accounts receivable, net, are now presented as a component of prepayments and other current assets. Prepayments and other current assets: As noted above, contract assets, which are recognized when a conditional right to consideration exists and transfer of control has occurred in advance of the Company’s right to invoice, were previously presented as a component of accounts receivable, net. Upon adoption of ASC 606, contract assets are presented as a component of prepayments and other current assets. Other non-current assets: The costs of obtaining contracts where the amortization period for recognition of the expense is beyond a year are capitalized and recognized over the revenue recognition period of the original contract. These costs are now classified as other non-current assets. Short-term and long-term deferred revenue: Adoption of the new revenue standard resulted in a decrease of deferred revenue primarily due to the net change in timing of software related revenue. Under the previous standard revenue for software license sales bundled with post-contract support and/or services where vendor-specific objective evidence of fair value had not been established was recognized ratably over the support period. Upon adoption of ASC 606 the revenue related to such software license sales will now be recognized when control transfers, which is usually at the time of billing. The actual revenue recognition treatment required under the standard will depend on contract-specific terms and, in some instances, transfer of control and revenue recognition may differ from the time of billing. Long-term deferred revenue is presented under other non-current liabilities. Other current liabilities: The returns provision, which represents a liability for expected customer returns, was previously presented as a reduction of accounts receivable and is now presented as other current liabilities. Adoption of the revenue standard had no impact on net cash provided by or used in operating, investing or financing activities as presented on our Consolidated Statements of Cash Flows. The following table presents the impact of the revenue standard adoption to select line items of our previously reported Consolidated Statement of Operations for the three months ended September 30, 2017 ( in millions, except per share data ) as follows: Three Months Ended September 30, 2017 As Reported Adjustment As Adjusted Revenues: Product revenue $ 171.9 $ (6.8 ) $ 165.1 Service revenue 23.3 2.5 25.8 Total net revenue 195.2 (4.3 ) 190.9 Cost of revenues: Product cost of revenue 63.5 (0.9 ) 62.6 Service cost of revenue 11.4 0.1 11.5 Amortization of acquired technologies 4.1 — 4.1 Total cost of revenue 79.0 (0.8 ) 78.2 Gross profit 116.2 (3.5 ) 112.7 Income from operations 10.0 (3.3 ) 6.7 Loss before taxes (2.3 ) (3.3 ) (5.6 ) Provision for income taxes 2.5 (0.5 ) 2.0 Net loss $ (4.8 ) $ (2.8 ) $ (7.6 ) Net loss per common share: Basic and diluted $ (0.02 ) $ (0.01 ) $ (0.03 ) Shares used in per share calculations: Basic and diluted 228.1 — 228.1 The impacts to the previously issued amounts are summarized, as follows: Net revenue: Adoption of the revenue standard resulted in a change in the timing of revenue recognized primarily due to the treatment of software license revenue. Under the prior standard, if vendor-specific objective evidence had not been established for the post contract support and/or the services, software license revenue would have been recognized ratably over the support period. Upon adoption of ASC 606, revenue related to such software license sales will now be recognized when control transfers which is usually at the time of billing. The decrease in revenue for the period presented above is primarily the result of the elimination of ratable software license revenue. Such license revenue was previously amortized; however it is now recognized upon recast, at a point in time under the new standard. Recent Accounting Pronouncements Not Yet Adopted In June 2016, FASB issued guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The guidance is effective for the Company in the first quarter of fiscal 2021 and earlier adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In February 2016, the FASB issued guidance regarding both operating and financing leases, requiring lessees to recognize on their balance sheets “right-of-use assets” and corresponding lease liabilities, measured on a discounted basis over the lease term. Virtually all leases will be subject to this treatment except leases that meet the definition of a “short-term lease.” The guidance requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The guidance is effective for the Company in the first quarter of fiscal 2020. While the Company is not yet in a position to assess the full impact of the application of the new guidance, the Company expects adoption of this guidance will materially increase the assets and liabilities recorded on its Consolidated Balance Sheets. |
Revenue
Revenue | 3 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3. Revenue Effective in the first quarter of fiscal 2019, the Company adopted the revenue standard using the retrospective transition method which requires the Company to recast each prior period presented, consistent with the new guidance. The most significant impact of the revenue standard relates to our accounting for contracts containing software. As a result, for software solutions bundled with post-contract support (“ PCS ”) and/or services where vendor-specific objective evidence (“ VSOE ”) has not been established for the PCS and/or services, revenue will now be recognized when control transfers which is usually at time of billing rather than ratably over the life of the support term. The actual revenue recognition treatment required under the standard will depend on contract-specific terms and in some instances transfer of control and revenue recognition may differ from the time of billing. Revenue recognition under the revenue standard for the remainder of the Company’s products and services remains substantially unchanged. The Company derives revenue from a diverse portfolio of network solutions and optical technology products and services, as follows: • Products: Network Enablement (“ NE ”) and Service Enablement (“ SE ”) products include instruments, microprobes and perpetual software licenses that support the development, production, maintenance and optimization of network systems. The Company’s Optical Security and Performance (“ OSP ”) products include proprietary pigments used for optical security and optical filters used in commercial and government 3D Sensing applications. • Services: The Company also offers a range of product support and professional services designed to comprehensively address customer requirements. These include repair, calibration, extended warranty, software support, technical assistance, training and consulting services. Implementation services provided in conjunction with hardware or software solution projects include sale of the products along with project management, set-up and installation. Steps of revenue recognition The Company accounts for revenue in accordance with the revenue standard, in which the following five steps are applied to recognize revenue. 1. Identify the contract with a customer: Generally, the Company considers customer purchase orders, which in some cases are governed by master sales or other purchase agreements, to be the customer contract. All of the following criteria must be met before the Company considers an agreement to qualify as a contract with a customer under the revenue standard: (i) it must be approved by all parties; (ii) each party’s rights regarding the goods and services to be transferred can be identified; (iii) the payment terms for the goods and services can be identified; (iv) the customer has the ability and intent to pay and collection of substantially all of the consideration is probable; and (v) the agreement has commercial substance. The Company utilizes judgment to determine the customer’s ability and intent to pay, which is based upon various factors including the customer’s historical payment experience or credit and financial information and credit risk management measures implemented by the Company. 2. Identify the performance obligations in the contract: The Company assesses whether each promised good or service is distinct for the purpose of identifying the various performance obligations in each contract. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer; and (ii) the Company's promise to transfer the good or service to the customer is separately identifiable or distinct from other promises in the contract. The Company's performance obligations consist of a variety of products and services offerings which include networking equipment; proprietary pigment, optical filters, proprietary software licenses; support and maintenance which includes hardware support that extends beyond the Company's standard warranties, software maintenance, installation, professional and implementation services, and training. Determining whether products and services are considered distinct performance obligations may require significant judgment. We may enter into contracts that involve a significant level of integration and interdependency between a software license and installation services. Judgment may be required to determine whether the software license is considered distinct in the context of the contract and accounted for separately, or not distinct in the context of the contract and accounted for together with the installation service. 3. Determine the transaction price: Transaction price reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to the customer. The Company’s contracts may include terms that could cause variability in the transaction price including rebates, sales returns, market incentives and volume discounts. Variable consideration is generally accounted for at portfolio level and estimated based on historical information. If a contract includes a variable amount, the price adjustments are estimated at contract inception. In both cases, estimates are updated at the end of each reporting period as additional information becomes available. 4. Allocate the transaction price to performance obligations in the contract: If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Many of the Company’s contracts include multiple performance obligations with a combination of distinct products and services, maintenance and support, professional services and/or training. Contracts may also include rights or options to acquire future products and/or services, which are accounted for as separate performance obligations by the Company only if the right or option provides the customer with a material right that it would not receive without entering into the contract. For contracts with multiple performance obligations, the Company allocates the total transaction value to each distinct performance obligation based on relative standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation. The best evidence of SSP is the observable price of a good or service when the Company sells that good or service separately under similar circumstances to similar customers. If a directly observable price is not available, the SSP must be estimated based on multiple factors including, but not limited to, historical pricing practices, internal costs, and profit objectives as well as overall market conditions. 5. Recognize revenue when (or as) performance obligations are satisfied: Revenue is recognized at the point in time control is transferred to the customer. For hardware sales, transfer of control to the customer typically occurs at the point the product is shipped or delivered to the customer’s designated location. For software license sales transfer of control to the customer typically occurs upon shipment, electronic delivery, or when the software is available for download by the customer. For sales of implementation service and solution contracts or in instances where software is sold along with essential installation services, transfer of control occurs and revenue is typically recognized upon customer acceptance. In certain instances, acceptance is deemed to have occurred if all acceptance provisions lapse, or if the Company has evidence that all acceptance provisions will be, or have been, satisfied. For fixed-price support and extended warranty contracts, or certain software arrangements which provide customers with a right to access over a discrete period, control is deemed to transfer over time and revenue is recognized on a straight-line basis over the contract term due to the stand-ready nature of the performance obligation. Revenue from hardware repairs and calibration services is recognized at the time of completion of the related service. For other professional services or time-based labor contracts, revenue is recognized as the Company performs the services and the customers receive and consume the benefits. Revenue policy and practical expedients The following policy and practical expedient elections have been made by the Company under the revenue standard: • Revenue-based taxes as assessed by governmental authorities have been excluded from the measurement of transaction price(s). • Shipping and handling activities performed after customer obtains control of the good are treated as activities to fulfill the promise (cost of fulfillment). Therefore, the Company does not evaluate whether the shipping and handling activities are promised services. • Incremental costs of obtaining contracts that would have been recognized within one year or less are recognized as an expense when incurred. These costs are included in selling, general, and administrative expenses (“SG&A”). The costs of obtaining contracts where the amortization period for recognition of the expense is beyond a year are capitalized and recognized over the revenue recognition period of the original contract. • The portfolio approach is used for certain types of variable consideration for contracts with similar characteristics. The methodology is used when the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts within that portfolio. • Where at contract inception, the expected period between the transfer of promised goods or services and payment is within one year or less, we forgo adjustment for the impact of significant financing component for the contract. • For contracts that were modified before the beginning of the earliest reporting period presented, the Company has applied a transition practical expedient and will not recast the contracts for those modifications. Instead we have reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. • For the reporting periods presented before the date of initial application, the amount of the transaction price allocated to the remaining performance obligations and the explanation of when it expects to recognize that amount as revenue is not disclosed. Disaggregation of revenue The Company's revenue is presented on a disaggregated basis on the Consolidated Statements of Operations and in “Note 18. Operating Segments and Geographic Information”. This information includes revenue from reportable segments and a break-out of products and services for which the nature and timing of the revenue as characterized above is generally at a point in time and over time, respectively. Balance sheet and other details Receivables: The Company records a receivable when an unconditional right to consideration exists and transfer of control has occurred, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of customer invoicing. Payment terms vary based on product or service offerings and payment is generally required within 30 to 90 days from date of invoicing. Certain performance obligations may require payment before delivery of the service to the customer . Contract Assets: A contract asset is recognized when a conditional right to consideration exists and transfer of control has occurred. Contract assets include fixed fee professional services where the transfer of services has occurred in advance of the Company's right to invoice. Contract assets are included in other current assets on the consolidated balance sheet. There were contract assets of $1.4 million and $1.3 million as of September 29, 2018 and June 30, 2018 , respectively. Contract asset balances will fluctuate based upon the timing of transfer of services, billings and customers’ acceptance of contractual milestones. Deferred revenue: Deferred revenue consists of contract liabilities primarily related to support, solution deployment services, software maintenance, product, professional services, and training when the Company has a right to invoice or payments have been received and transfer of control has not occurred. Revenue is recognized on these items when the revenue recognition criteria are met, generally resulting in ratable recognition over the contract term. Contract liabilities are included in other current liabilities on the consolidated balance sheets. The Company also has short term and long term deferred revenues related to undelivered hardware and professional services, consisting of installations and consulting engagements, which are recognized as the Company's performance obligations under the contract are completed and accepted by the customer. The following tables summarize the activity related to deferred revenue ( in millions ): Three Months Ended September 29, 2018 Deferred revenue: Balance at beginning of period $ 71.9 Revenue deferrals for new contracts (1) 26.7 Revenue recognized during the period (26.0 ) Balance at end of period $ 72.6 Short-term deferred revenue $ 61.5 Long-term deferred revenue $ 11.1 (1) Included in these amounts are the impact from foreign currency exchange rate fluctuations. Remaining Performance Obligations: Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered, or incomplete, as of September 29, 2018 . Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded. The aggregate amount of the transaction price allocated to remaining performance obligations does not include amounts owed under cancelable contracts where there is no substantive termination penalty. The Company also applied the practical expedient to not disclose the amount of transaction price allocated to remaining performance obligations for the periods prior to adoption of the new revenue standard. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that has not materialized, and adjustments for currency. The value of the transaction price allocated to remaining performance obligations as of September 29, 2018 , was $236.1 million . The Company expects to recognize 94% of remaining performance obligations as revenue within the next 12 months , and the remainder thereafter. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4. Earnings Per Share The following table sets forth the computation of basic and diluted net loss per share ( in millions, except per share data ): Three Months Ended September 29, 2018 September 30, 2017 Numerator: Net loss $ (15.3 ) $ (7.6 ) Denominator: Weighted-average number of common shares outstanding Basic 227.2 228.1 Effect of dilutive securities from stock-based benefit plans — — Diluted 227.2 228.1 Net loss per share: Basic $ (0.07 ) $ (0.03 ) Diluted $ (0.07 ) $ (0.03 ) The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive ( in millions ): Three Months Ended September 29, 2018 (1) (2) (3) (4) September 30, 2017 (1) (2) (3) Stock options and ESPP 1.6 1.7 Restricted Stock Units 7.0 8.0 Total potentially dilutive securities 8.6 9.7 (1) As the Company incurred a net loss in the period, potential dilutive securities from employee stock options, ESPP, RSUs and PSUs have been excluded from the diluted net loss per share computations as their effects were deemed anti-dilutive. (2) The Company’s 0.625% Senior Convertible Notes due 2033 are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $11.28 per share payable in cash, shares of the Company’s common stock or a combination of both at the Company’s election. The Company’s average stock price for the three months ended September 29, 2018 did not exceed the conversion price of $11.28 . Refer to “ Note 11. Debt ” for more details. (3) The Company’s 1.00% Senior Convertible Notes due 2024 are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $13.22 per share payable in cash, shares of the Company’s common stock or a combination of both at the Company’s election. The Company’s average stock price for the three months ended September 29, 2018 did not exceed the conversion price of $13.22 . Refer to “ Note 11. Debt ” for more details. (4) The Company’s 1.75% Senior Convertible Notes due 2023 are not included in the table above. The par amount of convertible notes is payable in cash equal to the principle amount of the notes plus any accrued and unpaid interest and then the “in-the money” conversion benefit feature at the conversion price above $13.94 per share payable in cash, shares of the Company’s common stock or a combination of both at the Company’s election. The Company’s average stock price for the three months ended September 29, 2018 did not exceed the conversion price of $13.94 . Refer to “ Note 11. Debt ” for more details. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 5. Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss consists of the accumulated net unrealized gains or losses on available-for-sale investments, foreign currency translation adjustments and change in unrealized components of defined benefit obligations. For the three months ended September 29, 2018 the changes in accumulated other comprehensive loss by component net of tax were as follows ( in millions ): Unrealized losses on available-for sale investments Foreign currency translation adjustments Change in unrealized components of defined benefit obligations (1) Total Beginning balance as of June 30, 2018 $ (5.8 ) $ (74.0 ) $ (23.1 ) $ (102.9 ) Other comprehensive income (loss) before reclassification 0.1 (13.1 ) — (13.0 ) Amounts reclassified to accumulated other comprehensive loss 0.2 — 0.6 0.8 Net current-period other comprehensive income (loss) 0.3 (13.1 ) 0.6 (12.2 ) Ending balance as of September 29, 2018 $ (5.5 ) $ (87.1 ) $ (22.5 ) $ (115.1 ) (1) The amount reclassified out of accumulated other comprehensive loss represents the amortization of actuarial losses included as a component of cost of revenues, research and development (“R&D”) and SG&A in the Consolidated Statement of Operations for the three months ended September 29, 2018 . There was no tax impact for the three months ended September 29, 2018 . Refer to “ Note 16. Employee Pension and Other Benefit Plans ” for more details on the computation of net periodic cost for pension plans. |
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 6. Acquisitions AvComm and Wireless Test and Measurement Acquisition On March 15, 2018 ( “ AW Close Date ” ), the Company completed the acquisition of the AW Business of Cobham plc. (“AW”) for $469.8 million in cash, subject to working capital adjustments. The acquisition further strengthens the Company’s competitive position in 5G deployment and diversifies the Company into military, public safety and avionics test markets. The acquired business has been integrated into the Company's NE segment. The Company accounted for the transaction in accordance with the authoritative guidance on business combinations; therefore, the tangible and intangible assets acquired and liabilities assumed are recorded at fair value on the acquisition date. The identified intangible assets acquired, as of the AW Close Date, were as follows (in millions) : Tangible assets acquired: $ 59.3 Intangible assets acquired: Developed technology 113.5 Customer relationships 75.0 Trade names 28.0 In-process research and development 9.0 Customer Backlog 6.5 Goodwill 178.5 Total consideration transferred $ 469.8 The preliminary allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the AW Close Date, were as follows (in millions) : Cash $ 16.1 Accounts receivable 43.0 Inventory 33.5 Property and equipment 33.5 Other assets 7.6 Accounts payable (10.9 ) Other liabilities (29.6 ) Deferred revenue (10.2 ) Deferred tax liabilities (23.7 ) Net tangible assets acquired $ 59.3 The allocation of the purchase price was based upon a preliminary valuation, and our estimates and assumptions are subject to refinement, final cash and working capital adjustments within the measurement period (up to one year from the AW Close Date). Adjustments to the purchase price allocation may require adjustments to goodwill prospectively. Acquired intangible assets are classified as Level 3 assets for which fair value is derived from a valuation based on inputs that are unobservable and significant to the overall fair value measurement. The fair value of acquired developed technology, customer relationships, trade names, acquired in-process research and development (“ IPR&D ”) and backlog was determined based on an income approach using the discounted cash flow method. The intangible assets, except IPR&D , are being amortized over their estimated useful lives that range from three to six years. Order backlog will be fully amortized within one year. In accordance with authoritative guidance, the Company recognizes IPR&D at fair value as of March 15, 2018. The IPR&D is accounted for as an indefinite-lived intangible asset until completion or abandonment of the R&D efforts and is tested for impairment in each period it is considered an indefinite lived asset. Goodwill arising from this acquisition is primarily attributed to sales of future products and services and the assembled workforce of AW. Goodwill has been assigned to the NE segment and is partially deductible for tax purposes. During the three months ended September 29, 2018 , the Company recorded a measurement period adjustment of $6.3 million for a tax related liability, which resulted in a corresponding increase to acquired goodwill. AW results of operations have been included in the Company’s Consolidated Financial Statements subsequent to the date of acquisition. Trilithic, Inc. Acquisition During fiscal 2018 the Company completed the acquisition of Trilithic, Inc. (“Trilithic”) a privately-held provider of electronic test and measurement equipment for telecommunications service providers. The Company acquired all outstanding shares of Trilithic for $56.4 million in cash. The Trilithic acquisition has been integrated into our NE segment. The Company accounted for the transaction in accordance with the authoritative guidance on business combinations. Therefore, the tangible and intangible assets acquired and liabilities assumed were recorded at fair value on the acquisition date. The identified assets acquired, were as follows (in millions) : Tangible assets acquired: $ 11.8 Intangible assets acquired: Developed technology 15.5 Customer relationships 11.0 Other 0.3 Goodwill 17.8 Total purchase price $ 56.4 The allocation of the purchase price, were as follows (in millions) : Cash $ 0.2 Accounts receivable 3.2 Inventory 10.1 Property and equipment 1.2 Accounts payable (1.7 ) Other liabilities, net (1.2 ) Net tangible assets acquired $ 11.8 Acquired intangible assets are classified as Level 3 assets for which fair value is derived from a valuation based on unobservable inputs and significant to the overall fair value measurement. The fair value of acquired developed technology, customer relationships, and other intangible assets was determined based on an income approach using the discounted cash flow method. The intangible assets are being amortized over their estimated useful lives that range from three to five years for the acquired developed technology and customer relationships. The goodwill arising from this acquisition is primarily attributed to sales of future products and services and the assembled workforce of Trilithic. Goodwill has been assigned to the NE segment and is not deductible for tax purposes. |
Balance Sheet and Other Details
Balance Sheet and Other Details | 3 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet and Other Details | Note 7. Balance Sheet and Other Details Accounts receivable allowance The following table presents the activities and balances for allowance for doubtful accounts, as follows ( in millions ): June 30, 2018 Charged to Costs and Expenses Deductions (1) September 29, 2018 Allowance for doubtful accounts $ 2.4 $ 0.4 $ (0.3 ) $ 2.5 (1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries. Inventories, net The following table presents the components of inventories, net, as follows ( in millions ): September 29, 2018 June 30, 2018 Finished goods $ 33.5 $ 31.7 Work in process 20.6 24.4 Raw materials 35.4 36.2 Inventories, net $ 89.5 $ 92.3 Prepayments and other current assets The following table presents the components of prepayments and other current assets, as follo ws ( in millions ): September 29, 2018 June 30, 2018 Prepayments $ 12.7 $ 11.0 Asset held for sale 3.0 3.0 Other current assets 37.3 42.3 Prepayments and other current assets $ 53.0 $ 56.3 Other current liabilities The following table presents the components of other current liabilities, as follows ( in millions ): September 29, 2018 June 30, 2018 Customer prepayments $ 38.0 $ 37.9 Restructuring accrual 11.4 7.4 Income tax payable 7.5 5.9 Warranty accrual 4.7 4.7 VAT liabilities 1.8 1.7 Foreign exchange forward contracts liability 3.1 11.7 Other 8.3 9.6 Other current liabilities $ 74.8 $ 78.9 Other non-current liabilities The components of other non-current liabilities were as follo ws ( in millions ): September 29, 2018 June 30, 2018 Pension and post-employment benefits $ 98.8 $ 100.0 Financing obligation 26.7 26.8 Deferred tax liability 18.1 20.5 Long-term deferred revenue 11.1 11.3 Other 31.8 22.2 Other non-current liabilities $ 186.5 $ 180.8 |
Investments, Forward Contracts
Investments, Forward Contracts and Fair Value Measurements | 3 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Investments, Forward Contracts and Fair Value Measurements | Note 8. Investments, Forward Contracts and Fair Value Measurements Available-For-Sale Investments As of September 29, 2018 , the Company’s available-for-sale securities were as follows ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: U.S. treasuries $ 4.0 $ — $ — $ 4.0 U.S. agencies 8.8 — (0.1 ) 8.7 Municipal bonds and sovereign debt instruments 2.7 — — 2.7 Asset-backed securities 7.0 — (0.3 ) 6.7 Corporate securities 29.0 — (0.4 ) 28.6 Total available-for-sale debt securities $ 51.5 $ — $ (0.8 ) $ 50.7 The Company generally classifies debt securities as available-for-sale and as cash equivalents, short-term investments or other non-current assets based on the stated maturities; however, certain securities with stated maturities of longer than twelve months which are highly liquid and available to support current operations are also classified as short-term investments. As of September 29, 2018 , of the total estimated fair value, $50.1 million was classified as short-term investments and $0.6 million was classified as other non-current assets. In addition to the amounts presented above, as of September 29, 2018 , the Company’s short-term investments classified as trading securities related to the deferred compensation plan were $1.6 million , of which $0.4 million was invested in debt securities, $0.3 million was invested in money market instruments and funds and $0.9 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in the Company’s Consolidated Statements of Operations as a component of interest and other income, net. During the three months ended September 29, 2018 and September 30, 2017 , the Company recorded no other-than-temporary impairment charges in each respective period. As of September 29, 2018 , contractual maturities of the Company’s debt securities classified as available-for-sale were as follows ( in millions ): Amortized Cost/ Carrying Cost Estimated Fair Value Amounts maturing in less than 1 year $ 32.0 $ 31.7 Amounts maturing in 1 - 5 years 18.6 18.3 Amounts maturing in more than 5 years 0.9 0.7 Total debt available-for-sale securities $ 51.5 $ 50.7 As of June 30, 2018 , the Company’s available-for-sale securities were as follows ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: U.S. treasuries $ 36.0 $ — $ (0.1 ) $ 35.9 U.S. agencies 13.3 — (0.1 ) 13.2 Municipal bonds and sovereign debt instruments 2.7 — — 2.7 Asset-backed securities 23.9 — (0.4 ) 23.5 Corporate securities 114.9 — (0.6 ) 114.3 Total available-for-sale securities $ 190.8 $ — $ (1.2 ) $ 189.6 As of June 30, 2018 , of the total estimated fair value, $21.2 million was classified as cash equivalents, $167.7 million was classified as short-term investments and $0.7 million was classified as other non-current assets. In addition to the amounts presented above, as of June 30, 2018 , the Company’s short-term investments classified as trading securities, related to the deferred compensation plan, were $1.6 million , of which $0.4 million was invested in debt securities, $0.3 million was invested in money market instruments and funds and $0.9 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in the Company’s Consolidated Statements of Operations as a component of interest and other income, net. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. There is an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. Observable inputs are, inputs which market participants would use in valuing an asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs, which reflect the assumptions market participants would use in valuing an asset or liability. The Company’s cash and investment instruments are classified within Level 1 or Level 2 of the fair value hierarchy based on quoted prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. • Level 1: includes financial instruments for which quoted market prices for identical instruments are available in active markets. Level 1 assets of the Company include money market funds, U.S. Treasury securities and marketable equity securities as they are traded with sufficient volume and frequency of transactions. • Level 2: includes financial instruments for which the valuations are based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 2 instruments of the Company generally include certain U.S. and foreign government and agency securities, commercial paper, corporate and municipal bonds and notes, asset-backed securities, certificates of deposit, and foreign currency forward contracts. To estimate their fair value, the Company utilizes pricing models based on market data. The significant inputs for the valuation model usually include benchmark yields, reported trades, broker and dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, and industry and economic events. • Level 3: includes financial instruments for which fair value is derived from valuation based on inputs that are unobservable and significant to the overall fair value measurement. As of September 29, 2018 and June 30, 2018 , the Company did not hold any Level 3 investment securities. Fair Value Measurements Assets measured at fair value as of September 29, 2018 and June 30, 2018 are summarized below ( in millions ): September 29, 2018 June 30, 2018 Total Level 1 Investments Level 2 Investments Total Level 1 Investments Level 2 Investments Assets: Debt available-for-sale securities U.S. treasuries $ 4.0 $ 4.0 $ — $ 35.9 $ 35.9 $ — U.S. agencies 8.7 — 8.7 13.2 — 13.2 Municipal bonds and sovereign debt instruments 2.7 — 2.7 2.7 — 2.7 Asset-backed securities 6.7 — 6.7 23.5 — 23.5 Corporate securities 28.6 — 28.6 114.3 — 114.3 Total debt available-for-sale securities 50.7 4.0 46.7 189.6 35.9 153.7 Money market funds 329.1 329.1 — 354.9 354.9 — Trading securities 1.6 1.6 — 1.6 1.6 — Foreign currency forward contracts 1.9 — 1.9 2.7 — 2.7 Total assets (1) $ 383.3 $ 334.7 $ 48.6 $ 548.8 $ 392.4 $ 156.4 Liability: Foreign currency forward contracts 3.2 — 3.2 11.7 — 11.7 Total liabilities (2) $ 3.2 $ — $ 3.2 $ 11.7 $ — $ 11.7 (1) $318.0 million in cash and cash equivalents, $51.7 million in short-term investments, $7.1 million in restricted cash, $1.9 million in prepayments and other current assets, and $4.6 million in other non-current assets on the Company’s Consolidated Balance Sheets as of September 29, 2018 . $364.8 million in cash and cash equivalents, $169.3 million in short-term investments, $7.3 million in restricted cash, $2.7 million in other current assets, and $4.7 million in other non-current assets on the Company’s Consolidated Balance Sheets as of June 30, 2018 . (2) $3.2 million and $11.7 million in other current liabilities on the Company’s Consolidated Balance Sheets as of September 29, 2018 and June 30, 2018 , respectively. Non-Designated Foreign Currency Forward Contracts The Company has foreign subsidiaries that operate and sell the Company’s products in various markets around the world. As a result, the Company is exposed to foreign exchange risks. The Company utilizes foreign exchange forward contracts to manage foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily certain short-term intercompany receivables and payables, and to reduce the volatility of earnings and cash flows related to foreign-currency transactions. The Company does not use these foreign currency forward contracts for trading purposes. As of September 29, 2018 , the Company had forward contracts that were effectively closed but not settled with the counterparties by quarter end. Therefore, the fair value of these contracts of $1.9 million and $3.2 million is reflected as prepayments and other current assets and other current liabilities, respectively. As of June 30, 2018 , the fair value of these contracts of $2.7 million and $11.7 million is reflected as prepayments and other current assets and other current liabilities, respectively. The forward contracts outstanding and not effectively closed, with a term of less than 120 days, were transacted near quarter end; therefore, the fair value of the contracts is not significant. As of September 29, 2018 and June 30, 2018 , the notional amounts of the forward contracts the Company held to purchase foreign currencies were $176.2 million and $167.5 million , respectively, and the notional amounts of forward contracts the Company held to sell foreign currencies were $31.2 million and $28.6 million , respectively. The change in the fair value of foreign currency forward contracts is recorded as gain or loss in the Company’s Consolidated Statements of Operations as a component of interest and other income, net. The cash flows related to the settlement of foreign currency forward contracts are classified as operating activities. The foreign exchange forward contracts incurred a loss of $1.3 million and a gain of $3.1 million for the three months ended September 29, 2018 and September 30, 2017 , respectively. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 9. Goodwill Changes in goodwill allocated to the Company’s reportable segments are as follows (in millions) : Network Enablement Service Enablement Optical Security and Performance Products Total Balance as of June 30, 2018 $ 328.0 $ — $ 8.3 $ 336.3 Other 6.3 — — 6.3 Currency translation adjustments (1.5 ) — — (1.5 ) Balance as of September 29, 2018 $ 332.8 $ — $ 8.3 $ 341.1 The Company tests goodwill for impairment at the reporting unit level for impairment annually during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that the asset may be impaired. In the fourth quarter of fiscal 2018 , the Company reviewed goodwill under the qualitative assessment of the authoritative guidance and concluded that it was more likely than not that the fair value of each reporting unit exceeded its carrying amount and that no indication of impairment existed. There were no events or changes in circumstances which triggered an impairment review during the three months ended September 29, 2018 . |
Acquired Developed Technology a
Acquired Developed Technology and Other Intangibles | 3 Months Ended |
Sep. 29, 2018 | |
Acquired Developed Technology and Other Intangibles | |
Acquired Developed Technology and Other Intangibles | Note 10. Acquired Developed Technology and Other Intangibles The following tables present details of the Company’s acquired developed technology, customer relationships and other intangibles ( in millions ): As of September 29, 2018 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 453.0 $ (339.8 ) $ 113.2 Customer relationships 174.8 (105.2 ) 69.6 In-process research and development 9.0 — 9.0 Other (1) 38.4 (13.6 ) 24.8 Total intangibles $ 675.2 $ (458.6 ) $ 216.6 As of June 30, 2018 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 447.8 $ (326.4 ) $ 121.4 Customer relationships 175.4 (97.1 ) 78.3 In-process research and development 9.0 — 9.0 Other (1) 42.8 (16.4 ) 26.4 Total intangibles $ 675.0 $ (439.9 ) $ 235.1 (1) Other intangibles consist of customer backlog, non-competition agreements, patents, proprietary know-how and trade secrets, trademarks and trade names. The following table presents the amortization recorded relating to acquired developed technology, customer relationships and other intangibles ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Cost of revenues $ 9.4 $ 4.1 Operating expenses 9.8 3.1 Total amortization of intangible assets $ 19.2 $ 7.2 Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of September 29, 2018 , and assuming no future impairment of the underlying assets, the estimated future amortization is as follows ( in millions ): Fiscal Years Remainder of 2019 $ 49.6 2020 59.8 2021 55.5 2022 28.3 2023 14.4 Total amortization $ 207.6 The acquired developed technology, customer relationships and other intangibles balance are adjusted quarterly to record the effect of currency translation adjustments. |
Debt
Debt | 3 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 11. Debt As of September 29, 2018 and June 30, 2018 , the Company’s short and long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component, net of unamortized debt discounts and issuance cost, of the Senior Convertible Notes. The following table presents the carrying amounts of the liability and equity components ( in millions ): September 29, 2018 June 30, 2018 Principal amount of 0.625% Senior Convertible Notes $ 142.7 $ 277.0 Principal amount of 1.00% Senior Convertible Notes 460.0 460.0 Principal amount of 1.75% Senior Convertible Notes 225.0 225.0 Unamortized discount of liability component (114.6 ) (121.1 ) Unamortized debt issuance cost (7.3 ) (7.7 ) Carrying amount of liability component $ 705.8 $ 833.2 Current portion of long-term debt 142.7 275.3 Long-term debt, net of current portion $ 563.1 $ 557.9 Carrying amount of equity component (1) $ 239.1 $ 239.1 (1) Included in additional paid-in-capital on the Consolidated Balance Sheets. The Company was in compliance with all debt covenants as of September 29, 2018 and June 30, 2018 . 1.75% Senior Convertible Notes (“2023 Notes”) On May 29, 2018, the Company issued $225.0 million aggregate principal amount of 1.75% Senior Convertible Notes due 2023 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The Company issued $155.5 million aggregate principal of the 2023 Notes to certain holders of the 2033 Notes in exchange for $151.5 million principal of the 2033 Notes (the “Exchange Transaction”) and issued and sold $69.5 million aggregate principal amount of the 2023 Notes in a private placement to accredited institutional buyers (the “Private Placement”). The carrying value of the liability component at issuance was calculated as the present value of its cash flows using a discount rate of 5.3% based on the 5 -year swap rate plus credit spread as of the issuance date. As of September 29, 2018 , the expected remaining term of the 2023 Notes is 4.6 years. The proceeds from the 2023 Notes Private Placement amounted to $67.3 million after issuance costs. The 2023 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 1.75% payable in cash semi-annually in arrears on June 1st and December 1st of each year, beginning December 1, 2018. The 2023 Notes mature on June 1, 2023 unless earlier converted, redeemed or repurchased. Based on quoted market prices as of September 29, 2018 and June 30, 2018 , the fair value of the 2023 Notes was approximately $242.5 million and $232.4 million , respectively. The 2023 Notes are classified within Level 2 as they are not actively traded in markets. 1.00% Senior Convertible Notes (“2024 Notes”) On March 3, 2017, the Company issued $400.0 million aggregate principal amount of 1.00% Senior Convertible Notes due 2024 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. On March 22, 2017, the Company issued an additional $60.0 million upon exercise of the over-allotment option of the initial purchasers. The total proceeds from the 2024 Notes amounted to $451.1 million after issuance costs. The 2024 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 1.00% payable in cash semi-annually in arrears on March 1 and September 1 of each year. The 2024 Notes mature on March 1, 2024 unless earlier converted or repurchased. The carrying value of the liability component at issuance was calculated as the present value of its cash flows using a discount rate of 4.8% based on the 7 -year swap rate plus credit spread as of the issuance date. As of September 29, 2018 , the expected remaining term of the 2024 Notes is 5.4 years. Based on quoted market prices as of September 29, 2018 and June 30, 2018 , the fair value of the 2024 Notes was approximately $496.3 million and $465.3 million , respectively. The 2024 Notes are classified within Level 2 as they are not actively traded in markets. 0.625% Senior Convertible Notes (“2033 Notes”) On August 21, 2013, the Company issued $650.0 million aggregate principal amount of 0.625% Senior Convertible Notes due 2033 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The proceeds from the 2033 Notes amounted to $636.3 million after issuance costs. The 2033 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 0.625% payable in cash semi-annually in arrears on February 15 and August 15 of each year. The carrying value of the liability component at issuance was calculated as the present value of its cash flows using a discount rate of 5.4% based on the 5 -year swap rate plus credit spread as of the issuance date. On August 15, 2018, certain Noteholders exercised the put option and an aggregate principal amount of $134.3 million of the 2033 Notes were validly surrendered for repurchase. The Company accepted all such notes for payment with available cash. On September 5, 2018, the Company elected to exercise its optional redemption right to redeem all $142.7 million aggregate principal amount of its 2033 Notes outstanding after the satisfaction of the put option. The date fixed for the redemption of the Notes was October 10, 2018 (Redemption Date), the redemption price for the Notes was equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest thereon to, but excluding the Redemption Date. For information related to this transaction refer to “ Note 19. Subsequent Events .” As of September 29, 2018 , $142.7 million aggregate principal amount of the Notes remains outstanding. The Notes are classified as current portion of long-term debt on the consolidated balance sheets. Based on quoted market prices as of September 29, 2018 and June 30, 2018 , the fair value of the 2033 Notes was approximately $144.3 million and $281.0 million , respectively. The 2033 Notes are classified within Level 2 as they are not actively traded in markets. Interest Expense The following table presents the interest expense for contractual interest, amortization of debt issuance cost and accretion of debt discount ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Interest expense-contractual interest $ 2.5 $ 2.0 Amortization of debt issuance cost 0.4 0.7 Accretion of debt discount 6.5 9.1 |
Restructuring and Related Charg
Restructuring and Related Charges | 3 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | Note 12. Restructuring and Related Charges The Company has initiated restructuring events primarily intended to reduce its costs, consolidate its operations, streamline product manufacturing and address market conditions. The Company’s restructuring charges primarily include severance and benefit costs to eliminate a specific number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods. As of September 29, 2018 and June 30, 2018 , the Company’s total restructuring accrual was $14.6 million and $7.5 million , respectively. During the three months ended September 29, 2018 and September 30, 2017 , the Company recorded restructuring and related charges of $14.8 million and $1.5 million , respectively. Summary of Restructuring Plans The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three months ended September 29, 2018 were as follows (in millions) : Balance Three Months Ended September 29, 2018 Charges (Benefits) Cash Settlements Non-cash Settlements and Other Adjustments Balance Fiscal 2019 Plan NSE, including AW Restructuring Plan $ — $ 14.5 $ (2.0 ) $ — $ 12.5 Fiscal 2018 Plan Trilithic Restructuring Plan (1) (2) 2.9 — (2.9 ) — — Fiscal 2017 Plan Focused NSE Restructuring Plan (1) (2) 1.9 0.4 (2.0 ) 0.1 0.4 Plans Prior to Fiscal 2017 NE Lease Restructuring Plan (2) 1.2 — (0.3 ) — 0.9 Other Plans (1)(2) 1.5 (0.1 ) (0.6 ) — 0.8 Total $ 7.5 $ 14.8 $ (7.8 ) $ 0.1 $ 14.6 (1) Plan type includes workforce reduction cost. (2) Plan type includes lease exit cost. The long-term portion of our total restructuring liability for the September 29, 2018 and June 30, 2018 periods is $3.2 million and $0.1 million , respectively. The remaining portion has been included as a component of Other current liabilities on the Consolidated Balance Sheets. Fiscal 2019 Plans NSE, including AW Restructuring Plan In July 2018, Management approved restructuring and global workforce reduction plans within its Network Service and Enablement (“NSE”) business, including actions related to the recently acquired AW business. These actions further drive the Company’s strategy for organizational alignment and consolidation as part of its continued commitment to a more cost effective and agile organization and to improve overall profitability in the Company’s NSE business. Included in these restructuring plans are specific actions to consolidate and integrate the newly acquired AW business within the NSE business segment. As a result, a restructuring charge of $14.5 million was recorded for severance and employee benefits for approximately 240 employees primarily in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia . Payments related to the severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2020. Fiscal 2018 Plans Trilithic Restructuring Plan During the second quarter of fiscal 2018, Management approved a plan within the NE business segment to consolidate and integrate the Trilithic acquisition. As a result, approximately 40 employees primarily in manufacturing, and SG&A functions located in the United States were impacted. Payments related to the severance and benefits accrual were paid by the end of the first quarter of fiscal 2019. Fiscal 2017 Plans Focused NSE Restructuring Plan During fiscal 2017, Management approved a plan within the NE and SE business segments as part of VIAVI’s continued strategy to improve profitability in the Company’s NSE business by narrowing the scope of the Service Enablement business and reducing costs by streamlining NSE operations. In total, approximately 360 employees in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia were impacted. Payments related to the severance and benefits accrual were paid by the end of the first quarter of fiscal 2019 . In the first quarter of fiscal 2019, the Company exited the workspace in Vancouver, Canada under the plan. The fair value of the remaining contractual obligations as of September 29, 2018 was $0.4 million . Payments related to the Vancouver lease costs are expected to be paid by the end of the fourth quarter of fiscal 2019. Plans Prior to Fiscal 2017 NE Lease Restructuring Plan During the second quarter of fiscal 2014, Management approved a NE plan to exit the remaining space in Germantown, Maryland. As of June 28, 2014, the Company exited the space in Germantown under the plan. The fair value of the remaining contractual obligations, net of sublease income, as of September 29, 2018 was $0.9 million . Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019 . As of September 29, 2018 , the restructuring accrual for other plans that commenced prior to fiscal year 2017 was $0.8 million , which consists of immaterial accruals from various restructuring plans. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes The Company recorded an income tax expense of $5.7 million and $2.0 million for the three months ended September 29, 2018 and September 30, 2017 , respectively. The income tax expense for the three months ended September 29, 2018 and September 30, 2017 primarily relates to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income or loss for the respective fiscal year. A tax benefit of $2.8 million was recorded in the Company’s income tax provision for the three months ended September 30, 2017 related to the income tax intraperiod allocation rules in relation to other comprehensive income. On December 22, 2017, the U.S. Tax Cuts and Jobs Act was enacted. The Act imposed a deemed repatriation of the Company’s foreign subsidiaries’ post-1986 earnings and profits (“E&P”) which had previously been deferred from US income tax. This deemed repatriation must be reported in the Company’s fiscal 2018 U.S. tax return. The Company made a provisional estimate of this deemed repatriation of E&P. However, the Company has not yet completed the calculation of the total post-1986 foreign E&P for all foreign subsidiaries. The estimates may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation. In addition, further interpretations from U.S. federal and state governments and regulatory organizations may change the provisional estimate or the accounting treatment of the provisional estimate. The income tax expense recorded differs from the expected tax benefit that would be calculated by applying the federal statutory rate to the Company’s loss from continuing operations before taxes primarily due to the changes in valuation allowance for deferred tax assets attributable to the Company’s domestic and foreign income (loss) from continuing operations, and due to the income tax benefit recorded in continuing operations under the income tax intraperiod allocation rules. As of September 29, 2018 , and June 30, 2018 , the Company’s unrecognized tax benefits totaled $51.9 million and $48.6 million , respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $1.7 million accrued for the payment of interest and penalties at September 29, 2018 . The unrecognized tax benefits that may be recognized during the next twelve months are approximately $1.3 million . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Note 14. Stockholders' Equity Repurchase of Common Stock In February 2018, the Board of Directors increased the previously authorized stock repurchase program from $150 million to $200 million . The Board also extended the period during which repurchases could be made to September 30, 2019 . Under the revised repurchase authorization, the Company may repurchase its common stock from time to time at the discretion of the Company’s management. During the three months ended September 29, 2018 , the Company did not repurchase any shares of its common stock. As of September 29, 2018 , the Company had remaining authorization of $62.6 million for future share repurchases. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including business and financial market conditions. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 15. Stock-Based Compensation Overview The impact on the Company’s results of operations of recording stock-based compensation by function for the three months ended September 29, 2018 and September 30, 2017 , as follows ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Cost of revenues $ 0.8 $ 0.9 Research and development 1.2 1.1 Selling, general and administrative 6.1 5.5 Total stock-based compensation expense $ 8.1 $ 7.5 Approximately $0.9 million and $0.7 million of stock-based compensation expense was capitalized to inventory as of September 29, 2018 and September 30, 2017 , respectively. Full Value Awards Full Value Awards refer to restricted stock units that are granted without an exercise price and are converted to shares immediately upon vesting. Performance-based awards are performance-based with market conditions, performance conditions, time-based or a combination, and are expected to vest over one to four years. When converted into shares upon vesting, shares equivalent in value to the minimum withholding taxes liability on the vested shares are withheld by the Company for the payment of such taxes. During the three months ended September 29, 2018 and September 30, 2017 , the Company granted 3.4 million and 2.9 million time-based awards, respectively. The fair value of the time-based Full Value Awards is based on the closing market price of the Company’s common stock on the date of award. The majority of these time-based awards vest over three years , with 33% vesting after one year and the balance vesting quarterly over the remaining two years . During the three months ended September 29, 2018 and September 30, 2017 , the Company granted 0.5 million and 0.5 million , performance-based awards, respectively. These performance-based shares represent the target amount of grants, and the actual number of shares awarded upon vesting may vary depending upon the achievement of the relevant performance conditions. The shares attained over target upon vesting are reflected as awards granted during the period. Accordingly, during the three months ended September 29, 2018 and September 30, 2017 , the Company granted additional 0.1 million and 0.2 million shares due to performance-based shares attained over target. The aggregate grant-date fair value of performance-based awards granted during the three months ended September 29, 2018 and September 30, 2017 were estimated to be $6.2 million and $6.1 million , respectively. The majority of performance-based awards vest in equal annual installments over three years based on the attainment of certain performance measures and the employee’s continued service through the vest date. The performance-based awards with market condition were valued using a Monte Carlo simulation. As of September 29, 2018 , $74.9 million of unrecognized stock-based compensation cost related to Full Value Awards remains to be amortized. That cost is expected to be recognized over an estimated amortization period of 2.2 years. |
Employee Pension and Other Bene
Employee Pension and Other Benefit Plans | 3 Months Ended |
Sep. 29, 2018 | |
Defined Benefit Plan [Abstract] | |
Employee Pension and Other Benefit Plans | Note 16. Employee Pension and Other Benefit Plans The Company sponsors significant qualified and non-qualified pension plans for certain past and present employees in the United Kingdom (“U.K.”) and Germany. The Company also is responsible for the non-pension post-retirement benefit obligation assumed from a past acquisition. Most of the plans have been closed to new participants and no additional service costs are being accrued, except for certain plans in Germany assumed in connection with an acquisition during fiscal 2010 and the AW business acquisition during the third quarter of fiscal 2018. Benefits are generally based upon years of service and compensation or stated amounts for each year of service. As of September 29, 2018 , the U.K. and AW plans were partially funded while the other plans were unfunded. The Company’s policy for funded plans is to make contributions equal to or greater than the requirements prescribed by law or regulation. For unfunded plans, the Company pays the post-retirement benefits when due. During the three months ended September 29, 2018 , the Company contributed $0.7 million to the U.K. plan. The funded plan assets consist primarily of managed investments. The following table presents the components of net periodic cost for the pension and benefits plans ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Service cost $ — $ — Interest cost 0.6 0.7 Expected return on plan assets (0.4 ) (0.4 ) Amortization of net actuarial losses 0.6 0.4 Net periodic benefit cost $ 0.8 $ 0.7 Both the calculation of the projected benefit obligation and net periodic cost are based upon actuarial valuations. These valuations use participant-specific information such as salary, age, years of service, and assumptions about interest rates, compensation increases and other factors. At a minimum, the Company evaluates these assumptions annually and makes changes as necessary. The Company expects to incur cash outlays of approximately $7.8 million related to its defined benefit pension plans during fiscal 2019 to make current benefit payments and fund future obligations. As of September 29, 2018 , approximately $1.5 million had been incurred. These payments have been estimated based on the same assumptions used to measure the Company’s projected benefit obligation at June 30, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17. Commitments and Contingencies Legal Proceedings In June 2016, the Company received a court decision regarding the validity of an amendment to a pension deed of trust related to one of its foreign subsidiaries which the Company contends contained an error requiring the Company to increase the pension plan’s benefit. The Company had subsequently further amended the deed to rectify the error. The court ruled that the amendment increasing the pension plan benefit was valid until the subsequent amendment. The Company estimated the liability to range from (amounts represented as £ denote GBP) £ 5.7 million to £8.4 million . The Company determined the likelihood of loss to be probable and accrued £ 5.7 million as of July 2, 2016 in accordance with authoritative guidance on contingencies. The accrual is included in pension and post-employment benefits, which is a component of other non-current liabilities in the Company’s Consolidated Balance Sheets. The Company pursued an appeal of the court decision. In March 2018, the appellate court affirmed the decision of the lower court. The Company continues to pursue a claim against the U.K. law firm responsible for the error. As of September 29, 2018 , the related accrued pension liability was £5.9 million or $7.7 million . The Company is subject to a variety of claims and suits that arise from time to time in the ordinary course of our business. While management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact on its financial position, results of operations or statement of cash flows, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. Were an unfavorable final outcome to occur, there exists the possibility of a material adverse impact on the Company’s financial position, results of operations or cash flows for the period in which the effect becomes reasonably estimable. Guarantees The Company follows authoritative guidance which requires that upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligation it assumes under that guarantee. In addition, disclosures about the guarantees that an entity has issued, including a tabular reconciliation of the changes of the entity’s product warranty liabilities, are required. The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to: (i) divestiture agreements, under which the Company may provide customary indemnifications to purchasers of the Company’s businesses or assets; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises; and (iii) certain agreements with the Company’s officers, directors and employees, under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship. The terms of such obligations vary. Generally, a maximum obligation is not explicitly stated. Because the obligated amounts of these types of agreements often are not explicitly stated, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, the Company has not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations on the Consolidated Balance Sheets as of September 29, 2018 and June 30, 2018 . Outstanding Letters of Credit and Performance Bonds As of September 29, 2018 , the Company had standby letters of credit of $11.0 million and performance bonds of $1.6 million collateralized by restricted cash. Product Warranties The Company provides reserves for the estimated costs of product warranties at the time revenue is recognized. In general, the Company offers its customers warranties up to three -years and has accrued a reserve for the estimated costs of product warranties at the time revenue is recognized. It estimates the costs of its warranty obligations based on its historical experience of known product failure rates, use of materials to repair or replace defective products and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table presents the changes in the Company’s warranty reserve during fiscal 2019 and fiscal 2018 ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Balance as of beginning of period $ 8.2 $ 5.8 Provision for warranty 0.4 0.5 Utilization of reserve (1.2 ) (0.9 ) Adjustments related to pre-existing warranties (including changes in estimates) 1.6 0.7 Acquisition related (1) — 0.3 Balance as of end of period $ 9.0 $ 6.4 (1) See “ Note 6. Acquisitions ” of the Notes to Consolidated Financial Statements for detail of acquisition. |
Operating Segments and Geograph
Operating Segments and Geographic Information | 3 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Information | Note 18. Operating Segments and Geographic Information The Company evaluates its reportable segments in accordance with the authoritative guidance on segment reporting. The Company’s Chief Executive Officer is the Company’s Chief Operating Decision Maker (“CODM”), use operating segment financial information to evaluate segment performance and to allocate resources. The Company’s reportable segments are: (i) Network Enablement: NE provides testing solutions that access the network to perform build-out and maintenance tasks. These solutions include instruments, software and services to design, build, activate, certify, troubleshoot and optimize networks. The Company also offers a range of product support and professional services such as repair, calibration, software support and technical assistance for our products. (ii) Service Enablement: SE solutions are embedded systems that yield network, service and application performance data. These solutions—including instruments, microprobes and software—monitor, collect and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. (iii) Optical Security and Performance Products: OSP provides innovative, precision, high performance optical products for anti-counterfeiting, government, industrial, automotive and consumer electronic markets, including 3D Sensing applications. The CODM manages the Company in two broad business categories: NSE and OSP. The CODM evaluates segment performance of the NSE business based on the combined segment gross and operating margins. Operating expenses associated with the NSE business are not allocated to the individual segments within NSE, as they are managed centrally at the business unit level. The CODM evaluates segment performance of the OSP business based on segment operating margin. The Company allocates corporate-level operating expenses to its segment results, except for certain non-core operating and non-operating activities as discussed below. The Company does not allocate stock-based compensation, acquisition-related charges, amortization of intangibles, restructuring and related charges, impairment of goodwill, non-operating income and expenses, or other charges unrelated to core operating performance to its segments because management does not include this information in its measurement of the performance of the operating segments. These items are presented as “Other Items” in the table below. Additionally, the Company does not specifically identify and allocate all assets by operating segment. Information on reportable segments is as follows (in millions): Three Months Ended September 29, 2018 Network Enablement Service Enablement Network and Service Enablement Optical Security and Performance Products Other Items Consolidated GAAP Measures Product revenue $ 149.9 $ 13.6 $ 163.5 $ 77.6 $ — $ 241.1 Service revenue 14.6 12.6 27.2 0.2 — 27.4 Net revenue 164.5 26.2 190.7 77.8 — 268.5 Gross profit 102.9 18.3 121.2 39.4 (10.2 ) 150.4 Gross margin 62.6 % 69.8 % 63.6 % 50.6 % 56.0 % Operating income 16.4 27.4 (45.0 ) (1.2 ) Operating margin 8.6 % 35.2 % (0.4 )% Three Months Ended September 30, 2017 Network Enablement Service Enablement Network and Service Enablement Optical Security and Performance Products Other Items Consolidated GAAP Measures Product revenue $ 102.8 $ 8.6 $ 111.4 $ 53.7 $ — $ 165.1 Service revenue 8.8 16.3 25.1 0.7 — 25.8 Net revenue 111.6 24.9 136.5 54.4 — 190.9 Gross profit 70.3 17.3 87.6 31.4 (6.3 ) 112.7 Gross margin 63.0 % 69.5 % 64.2 % 57.7 % 59.0 % Operating income 3.9 22.2 (19.4 ) 6.7 Operating margin 2.9 % 40.8 % 3.5 % Three Months Ended September 29, 2018 September 30, 2017 Corporate reconciling items impacting gross profit: Total segment gross profit $ 160.6 $ 119.0 Stock-based compensation (0.8 ) (0.9 ) Amortization of intangibles (9.4 ) (4.1 ) Other charges unrelated to core operating performance (1) — (1.3 ) GAAP gross profit $ 150.4 $ 112.7 Corporate reconciling items impacting operating income: Total segment operating income $ 43.8 $ 26.1 Stock-based compensation (8.1 ) (7.5 ) Amortization of intangibles (19.2 ) (7.2 ) Other charges unrelated to core operating performance (1) (2.9 ) (3.2 ) Restructuring and related charges (14.8 ) (1.5 ) GAAP operating income $ (1.2 ) $ 6.7 (1) During the three months ended September 29, 2018 and September 30, 2017 , other charges unrelated to core operating performance primarily consisted of acquisition and integration related transformational initiatives such as the implementation of simplified automated processes, site consolidation and reorganizations, amortization of acquisition related inventory step-up, and loss on disposal of long-lived assets. The Company operates primarily in three geographic regions: Americas, Asia-Pacific, and Europe, Middle East and Africa (“EMEA”). Net revenue is assigned to the geographic region and country where our product is initially shipped. For example, certain customers may request shipment of our product to a contract manufacturer in one country, which may differ from the location of their end customers. The following table presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue, (in millions): Three Months Ended September 29, 2018 September 30, 2017 Product Revenue Service Revenue Total Product Revenue Service Revenue Total Americas: United States $ 60.1 $ 12.7 $ 72.8 $ 64.6 $ 13.0 $ 77.6 Other Americas 17.9 3.1 21.0 12.0 5.0 17.0 Total Americas $ 78.0 $ 15.8 $ 93.8 $ 76.6 $ 18.0 $ 94.6 Asia-Pacific: Greater China $ 58.7 $ 0.2 $ 58.9 $ 22.4 $ 0.6 $ 23.0 Other Asia 36.0 3.5 39.5 13.1 1.1 14.2 Total Asia-Pacific $ 94.7 $ 3.7 $ 98.4 $ 35.5 $ 1.7 $ 37.2 EMEA: Switzerland $ 25.7 $ — $ 25.7 $ 28.3 $ — $ 28.3 Other EMEA 42.7 7.9 50.6 24.7 6.1 30.8 Total EMEA $ 68.4 $ 7.9 $ 76.3 $ 53.0 $ 6.1 $ 59.1 Total net revenue $ 241.1 $ 27.4 $ 268.5 $ 165.1 $ 25.8 $ 190.9 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19. Subsequent Events 2033 Notes Redemption On September 5, 2018, the Company elected to exercise its optional redemption right to redeem all $142.7 million aggregate principal amount of its outstanding 2033 Notes. The date of redemption of the Notes was October 10, 2018 (“Redemption Date”). The redemption price for the Notes equal to 100% of the principal amount plus accrued and unpaid interest thereon to, but excluding the Redemption Date. In connection with the redemption, holders of $112.0 million aggregate principal amount of Notes converted their Notes in accordance with the terms and conditions of the Notes. Note holders who converted their notes received an aggregate payout of $111.8 million in cash and were issued 231,795 shares. For additional information related to our debt refer to “ Note 11. Debt .” The Company redeemed the remaining $30.7 million aggregate principal amount of outstanding Notes in accordance with its notice of redemption dated September 5, 2018. The Company paid to the registered holders of the Notes that were redeemed an aggregate of approximately $30.8 million , including accrued and unpaid interest to, but excluding, the Redemption Date. No Notes remain outstanding following the conversions and the redemption. Definitive Agreement On October 30, 2018 , the Company completed the acquisition of RPC Photonics, Inc., a technology leader in engineered diffuser TM to expand our 3D Sensing offering for $30.0 million in cash plus up to $53.0 million in performance-based earn out payments, net of cash acquired, subject to working capital adjustments. Due to the closing of this acquisition subsequent to the period end, the Company is currently determining the fair value of assets acquired and liabilities assumed necessary to develop the purchase price allocation. Therefore, disclosure of the purchase price allocation to the tangible and intangible assets acquired and liabilities assumed is not practicable. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Years | Fiscal Years The Company utilizes a 52 - 53 week fiscal year ending on the Saturday closest to June 30th. The Company’s fiscal 2019 is a 52 -week year ending on June 29, 2019 . The Company’s fiscal 2018 was a 52 -week year ending on June 30, 2018 . |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenues and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and assumptions about future periods that are believed to be reasonable based on available information. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect readily available current information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted In November 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) that requires a statement of cash flows to present the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. In the three months ended September 29, 2018, we adopted this ASU using a retrospective transition method. Accordingly, our consolidated statement of cash flows for the three months ended September 30, 2017, as presented herein, has been restated to comply with the new requirements. In May 2014, the FASB issued new authoritative guidance related to revenue recognition from contracts with customers, ASC 606 - Revenue from Contracts with Customers (the “ revenue standard ”). The new guidance provides a unified model to determine when and how revenue is recognized. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The Company adopted the new standard effective in the first quarter of fiscal 2019 using the retrospective transition method, which requires the Company to recast each prior period presented consistent with the new guidance. Refer to “ Note 3. Revenue ” of the Consolidated Financial Statements for a summary of significant policies related to the new accounting standards. As part of the adoption, certain prior period amounts have been adjusted or reclassified within the consolidated financial statements. The following table presents the impact of the revenue standard adoption to select line items of our Consolidated Balance Sheet as of June 30, 2018 , ( in millions ) as follows: June 30, 2018 As Reported Adjustment As Adjusted ASSETS Accounts receivable, net $ 217.5 $ 1.1 $ 218.6 Prepayments and other assets 54.8 1.5 56.3 Deferred income taxes 114.5 (0.2 ) 114.3 Other non-current assets 13.6 1.8 15.4 Total assets $ 2,022.6 $ 4.2 $ 2,026.8 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 71.9 (11.3 ) 60.6 Accrued payroll and related expenses 51.4 1.4 52.8 Other current liabilities 77.0 1.9 78.9 Other non-current liabilities 182.8 (2.0 ) 180.8 Total stockholders’ equity 720.7 14.2 734.9 Total liabilities and stockholders’ equity $ 2,022.6 $ 4.2 $ 2,026.8 The primary impacts to the previously issued amounts are as follows: Accounts receivable, net: Adoption of the new revenue standard resulted in an increase to accounts receivable, net primarily due to two items: 1) The return rights provision, which represents a liability for expected customer returns, was previously presented as a reduction to accounts receivable and is now presented in other current liabilities; and 2) Contract assets which are recorded when a conditional right to consideration exists and transfer of control has occurred in advance of the Company’s right to invoice. Upon adoption of ASC 606, contract assets, which were previously presented as a component of accounts receivable, net, are now presented as a component of prepayments and other current assets. Prepayments and other current assets: As noted above, contract assets, which are recognized when a conditional right to consideration exists and transfer of control has occurred in advance of the Company’s right to invoice, were previously presented as a component of accounts receivable, net. Upon adoption of ASC 606, contract assets are presented as a component of prepayments and other current assets. Other non-current assets: The costs of obtaining contracts where the amortization period for recognition of the expense is beyond a year are capitalized and recognized over the revenue recognition period of the original contract. These costs are now classified as other non-current assets. Short-term and long-term deferred revenue: Adoption of the new revenue standard resulted in a decrease of deferred revenue primarily due to the net change in timing of software related revenue. Under the previous standard revenue for software license sales bundled with post-contract support and/or services where vendor-specific objective evidence of fair value had not been established was recognized ratably over the support period. Upon adoption of ASC 606 the revenue related to such software license sales will now be recognized when control transfers, which is usually at the time of billing. The actual revenue recognition treatment required under the standard will depend on contract-specific terms and, in some instances, transfer of control and revenue recognition may differ from the time of billing. Long-term deferred revenue is presented under other non-current liabilities. Other current liabilities: The returns provision, which represents a liability for expected customer returns, was previously presented as a reduction of accounts receivable and is now presented as other current liabilities. Adoption of the revenue standard had no impact on net cash provided by or used in operating, investing or financing activities as presented on our Consolidated Statements of Cash Flows. The following table presents the impact of the revenue standard adoption to select line items of our previously reported Consolidated Statement of Operations for the three months ended September 30, 2017 ( in millions, except per share data ) as follows: Three Months Ended September 30, 2017 As Reported Adjustment As Adjusted Revenues: Product revenue $ 171.9 $ (6.8 ) $ 165.1 Service revenue 23.3 2.5 25.8 Total net revenue 195.2 (4.3 ) 190.9 Cost of revenues: Product cost of revenue 63.5 (0.9 ) 62.6 Service cost of revenue 11.4 0.1 11.5 Amortization of acquired technologies 4.1 — 4.1 Total cost of revenue 79.0 (0.8 ) 78.2 Gross profit 116.2 (3.5 ) 112.7 Income from operations 10.0 (3.3 ) 6.7 Loss before taxes (2.3 ) (3.3 ) (5.6 ) Provision for income taxes 2.5 (0.5 ) 2.0 Net loss $ (4.8 ) $ (2.8 ) $ (7.6 ) Net loss per common share: Basic and diluted $ (0.02 ) $ (0.01 ) $ (0.03 ) Shares used in per share calculations: Basic and diluted 228.1 — 228.1 The impacts to the previously issued amounts are summarized, as follows: Net revenue: Adoption of the revenue standard resulted in a change in the timing of revenue recognized primarily due to the treatment of software license revenue. Under the prior standard, if vendor-specific objective evidence had not been established for the post contract support and/or the services, software license revenue would have been recognized ratably over the support period. Upon adoption of ASC 606, revenue related to such software license sales will now be recognized when control transfers which is usually at the time of billing. The decrease in revenue for the period presented above is primarily the result of the elimination of ratable software license revenue. Such license revenue was previously amortized; however it is now recognized upon recast, at a point in time under the new standard. Recent Accounting Pronouncements Not Yet Adopted In June 2016, FASB issued guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The guidance is effective for the Company in the first quarter of fiscal 2021 and earlier adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In February 2016, the FASB issued guidance regarding both operating and financing leases, requiring lessees to recognize on their balance sheets “right-of-use assets” and corresponding lease liabilities, measured on a discounted basis over the lease term. Virtually all leases will be subject to this treatment except leases that meet the definition of a “short-term lease.” The guidance requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The guidance is effective for the Company in the first quarter of fiscal 2020. While the Company is not yet in a position to assess the full impact of the application of the new guidance, the Company expects adoption of this guidance will materially increase the assets and liabilities recorded on its Consolidated Balance Sheets. |
Revenue Recognition | Remaining Performance Obligations: Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered, or incomplete, as of September 29, 2018 . Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded. The aggregate amount of the transaction price allocated to remaining performance obligations does not include amounts owed under cancelable contracts where there is no substantive termination penalty. The Company also applied the practical expedient to not disclose the amount of transaction price allocated to remaining performance obligations for the periods prior to adoption of the new revenue standard. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that has not materialized, and adjustments for currency. The Company derives revenue from a diverse portfolio of network solutions and optical technology products and services, as follows: • Products: Network Enablement (“ NE ”) and Service Enablement (“ SE ”) products include instruments, microprobes and perpetual software licenses that support the development, production, maintenance and optimization of network systems. The Company’s Optical Security and Performance (“ OSP ”) products include proprietary pigments used for optical security and optical filters used in commercial and government 3D Sensing applications. • Services: The Company also offers a range of product support and professional services designed to comprehensively address customer requirements. These include repair, calibration, extended warranty, software support, technical assistance, training and consulting services. Implementation services provided in conjunction with hardware or software solution projects include sale of the products along with project management, set-up and installation. Steps of revenue recognition The Company accounts for revenue in accordance with the revenue standard, in which the following five steps are applied to recognize revenue. 1. Identify the contract with a customer: Generally, the Company considers customer purchase orders, which in some cases are governed by master sales or other purchase agreements, to be the customer contract. All of the following criteria must be met before the Company considers an agreement to qualify as a contract with a customer under the revenue standard: (i) it must be approved by all parties; (ii) each party’s rights regarding the goods and services to be transferred can be identified; (iii) the payment terms for the goods and services can be identified; (iv) the customer has the ability and intent to pay and collection of substantially all of the consideration is probable; and (v) the agreement has commercial substance. The Company utilizes judgment to determine the customer’s ability and intent to pay, which is based upon various factors including the customer’s historical payment experience or credit and financial information and credit risk management measures implemented by the Company. 2. Identify the performance obligations in the contract: The Company assesses whether each promised good or service is distinct for the purpose of identifying the various performance obligations in each contract. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer; and (ii) the Company's promise to transfer the good or service to the customer is separately identifiable or distinct from other promises in the contract. The Company's performance obligations consist of a variety of products and services offerings which include networking equipment; proprietary pigment, optical filters, proprietary software licenses; support and maintenance which includes hardware support that extends beyond the Company's standard warranties, software maintenance, installation, professional and implementation services, and training. Determining whether products and services are considered distinct performance obligations may require significant judgment. We may enter into contracts that involve a significant level of integration and interdependency between a software license and installation services. Judgment may be required to determine whether the software license is considered distinct in the context of the contract and accounted for separately, or not distinct in the context of the contract and accounted for together with the installation service. 3. Determine the transaction price: Transaction price reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to the customer. The Company’s contracts may include terms that could cause variability in the transaction price including rebates, sales returns, market incentives and volume discounts. Variable consideration is generally accounted for at portfolio level and estimated based on historical information. If a contract includes a variable amount, the price adjustments are estimated at contract inception. In both cases, estimates are updated at the end of each reporting period as additional information becomes available. 4. Allocate the transaction price to performance obligations in the contract: If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Many of the Company’s contracts include multiple performance obligations with a combination of distinct products and services, maintenance and support, professional services and/or training. Contracts may also include rights or options to acquire future products and/or services, which are accounted for as separate performance obligations by the Company only if the right or option provides the customer with a material right that it would not receive without entering into the contract. For contracts with multiple performance obligations, the Company allocates the total transaction value to each distinct performance obligation based on relative standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation. The best evidence of SSP is the observable price of a good or service when the Company sells that good or service separately under similar circumstances to similar customers. If a directly observable price is not available, the SSP must be estimated based on multiple factors including, but not limited to, historical pricing practices, internal costs, and profit objectives as well as overall market conditions. 5. Recognize revenue when (or as) performance obligations are satisfied: Revenue is recognized at the point in time control is transferred to the customer. For hardware sales, transfer of control to the customer typically occurs at the point the product is shipped or delivered to the customer’s designated location. For software license sales transfer of control to the customer typically occurs upon shipment, electronic delivery, or when the software is available for download by the customer. For sales of implementation service and solution contracts or in instances where software is sold along with essential installation services, transfer of control occurs and revenue is typically recognized upon customer acceptance. In certain instances, acceptance is deemed to have occurred if all acceptance provisions lapse, or if the Company has evidence that all acceptance provisions will be, or have been, satisfied. For fixed-price support and extended warranty contracts, or certain software arrangements which provide customers with a right to access over a discrete period, control is deemed to transfer over time and revenue is recognized on a straight-line basis over the contract term due to the stand-ready nature of the performance obligation. Revenue from hardware repairs and calibration services is recognized at the time of completion of the related service. For other professional services or time-based labor contracts, revenue is recognized as the Company performs the services and the customers receive and consume the benefits. Revenue policy and practical expedients The following policy and practical expedient elections have been made by the Company under the revenue standard: • Revenue-based taxes as assessed by governmental authorities have been excluded from the measurement of transaction price(s). • Shipping and handling activities performed after customer obtains control of the good are treated as activities to fulfill the promise (cost of fulfillment). Therefore, the Company does not evaluate whether the shipping and handling activities are promised services. • Incremental costs of obtaining contracts that would have been recognized within one year or less are recognized as an expense when incurred. These costs are included in selling, general, and administrative expenses (“SG&A”). The costs of obtaining contracts where the amortization period for recognition of the expense is beyond a year are capitalized and recognized over the revenue recognition period of the original contract. • The portfolio approach is used for certain types of variable consideration for contracts with similar characteristics. The methodology is used when the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts within that portfolio. • Where at contract inception, the expected period between the transfer of promised goods or services and payment is within one year or less, we forgo adjustment for the impact of significant financing component for the contract. • For contracts that were modified before the beginning of the earliest reporting period presented, the Company has applied a transition practical expedient and will not recast the contracts for those modifications. Instead we have reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. • For the reporting periods presented before the date of initial application, the amount of the transaction price allocated to the remaining performance obligations and the explanation of when it expects to recognize that amount as revenue is not disclosed. Disaggregation of revenue The Company's revenue is presented on a disaggregated basis on the Consolidated Statements of Operations and in “Note 18. Operating Segments and Geographic Information”. This information includes revenue from reportable segments and a break-out of products and services for which the nature and timing of the revenue as characterized above is generally at a point in time and over time, respectively. Balance sheet and other details Receivables: The Company records a receivable when an unconditional right to consideration exists and transfer of control has occurred, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of customer invoicing. Payment terms vary based on product or service offerings and payment is generally required within 30 to 90 days from date of invoicing. Certain performance obligations may require payment before delivery of the service to the customer . Contract Assets: A contract asset is recognized when a conditional right to consideration exists and transfer of control has occurred. Contract assets include fixed fee professional services where the transfer of services has occurred in advance of the Company's right to invoice. Contract assets are included in other current assets on the consolidated balance sheet. There were contract assets of $1.4 million and $1.3 million as of September 29, 2018 and June 30, 2018 , respectively. Contract asset balances will fluctuate based upon the timing of transfer of services, billings and customers’ acceptance of contractual milestones. Deferred revenue: Deferred revenue consists of contract liabilities primarily related to support, solution deployment services, software maintenance, product, professional services, and training when the Company has a right to invoice or payments have been received and transfer of control has not occurred. Revenue is recognized on these items when the revenue recognition criteria are met, generally resulting in ratable recognition over the contract term. Contract liabilities are included in other current liabilities on the consolidated balance sheets. The Company also has short term and long term deferred revenues related to undelivered hardware and professional services, consisting of installations and consulting engagements, which are recognized as the Company's performance obligations under the contract are completed and accepted by the customer. |
Fair Value Measurements | The Company’s cash and investment instruments are classified within Level 1 or Level 2 of the fair value hierarchy based on quoted prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. • Level 1: includes financial instruments for which quoted market prices for identical instruments are available in active markets. Level 1 assets of the Company include money market funds, U.S. Treasury securities and marketable equity securities as they are traded with sufficient volume and frequency of transactions. • Level 2: includes financial instruments for which the valuations are based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 2 instruments of the Company generally include certain U.S. and foreign government and agency securities, commercial paper, corporate and municipal bonds and notes, asset-backed securities, certificates of deposit, and foreign currency forward contracts. To estimate their fair value, the Company utilizes pricing models based on market data. The significant inputs for the valuation model usually include benchmark yields, reported trades, broker and dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, and industry and economic events. • Level 3: includes financial instruments for which fair value is derived from valuation based on inputs that are unobservable and significant to the overall fair value measurement. As of September 29, 2018 and June 30, 2018 , the Company did not hold any Level 3 investment securities. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table presents the impact of the revenue standard adoption to select line items of our Consolidated Balance Sheet as of June 30, 2018 , ( in millions ) as follows: June 30, 2018 As Reported Adjustment As Adjusted ASSETS Accounts receivable, net $ 217.5 $ 1.1 $ 218.6 Prepayments and other assets 54.8 1.5 56.3 Deferred income taxes 114.5 (0.2 ) 114.3 Other non-current assets 13.6 1.8 15.4 Total assets $ 2,022.6 $ 4.2 $ 2,026.8 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue 71.9 (11.3 ) 60.6 Accrued payroll and related expenses 51.4 1.4 52.8 Other current liabilities 77.0 1.9 78.9 Other non-current liabilities 182.8 (2.0 ) 180.8 Total stockholders’ equity 720.7 14.2 734.9 Total liabilities and stockholders’ equity $ 2,022.6 $ 4.2 $ 2,026.8 ( in millions, except per share data ) as follows: Three Months Ended September 30, 2017 As Reported Adjustment As Adjusted Revenues: Product revenue $ 171.9 $ (6.8 ) $ 165.1 Service revenue 23.3 2.5 25.8 Total net revenue 195.2 (4.3 ) 190.9 Cost of revenues: Product cost of revenue 63.5 (0.9 ) 62.6 Service cost of revenue 11.4 0.1 11.5 Amortization of acquired technologies 4.1 — 4.1 Total cost of revenue 79.0 (0.8 ) 78.2 Gross profit 116.2 (3.5 ) 112.7 Income from operations 10.0 (3.3 ) 6.7 Loss before taxes (2.3 ) (3.3 ) (5.6 ) Provision for income taxes 2.5 (0.5 ) 2.0 Net loss $ (4.8 ) $ (2.8 ) $ (7.6 ) Net loss per common share: Basic and diluted $ (0.02 ) $ (0.01 ) $ (0.03 ) Shares used in per share calculations: Basic and diluted 228.1 — 228.1 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of activity related to deferred revenue and financed unearned services revenue | The following tables summarize the activity related to deferred revenue ( in millions ): Three Months Ended September 29, 2018 Deferred revenue: Balance at beginning of period $ 71.9 Revenue deferrals for new contracts (1) 26.7 Revenue recognized during the period (26.0 ) Balance at end of period $ 72.6 Short-term deferred revenue $ 61.5 Long-term deferred revenue $ 11.1 (1) Included in these amounts are the impact from foreign currency exchange rate fluctuations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net (loss) income per share | The following table sets forth the computation of basic and diluted net loss per share ( in millions, except per share data ): Three Months Ended September 29, 2018 September 30, 2017 Numerator: Net loss $ (15.3 ) $ (7.6 ) Denominator: Weighted-average number of common shares outstanding Basic 227.2 228.1 Effect of dilutive securities from stock-based benefit plans — — Diluted 227.2 228.1 Net loss per share: Basic $ (0.07 ) $ (0.03 ) Diluted $ (0.07 ) $ (0.03 ) |
Schedule of weighted average potentially dilutive securities excluded from the computation because their effect would have been anti-dilutive | The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive ( in millions ): Three Months Ended September 29, 2018 (1) (2) (3) (4) September 30, 2017 (1) (2) (3) Stock options and ESPP 1.6 1.7 Restricted Stock Units 7.0 8.0 Total potentially dilutive securities 8.6 9.7 (1) As the Company incurred a net loss in the period, potential dilutive securities from employee stock options, ESPP, RSUs and PSUs have been excluded from the diluted net loss per share computations as their effects were deemed anti-dilutive. (2) The Company’s 0.625% Senior Convertible Notes due 2033 are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $11.28 per share payable in cash, shares of the Company’s common stock or a combination of both at the Company’s election. The Company’s average stock price for the three months ended September 29, 2018 did not exceed the conversion price of $11.28 . Refer to “ Note 11. Debt ” for more details. (3) The Company’s 1.00% Senior Convertible Notes due 2024 are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $13.22 per share payable in cash, shares of the Company’s common stock or a combination of both at the Company’s election. The Company’s average stock price for the three months ended September 29, 2018 did not exceed the conversion price of $13.22 . Refer to “ Note 11. Debt ” for more details. (4) The Company’s 1.75% Senior Convertible Notes due 2023 are not included in the table above. The par amount of convertible notes is payable in cash equal to the principle amount of the notes plus any accrued and unpaid interest and then the “in-the money” conversion benefit feature at the conversion price above $13.94 per share payable in cash, shares of the Company’s common stock or a combination of both at the Company’s election. The Company’s average stock price for the three months ended September 29, 2018 did not exceed the conversion price of $13.94 . Refer to “ Note 11. Debt ” for more details. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive loss | For the three months ended September 29, 2018 the changes in accumulated other comprehensive loss by component net of tax were as follows ( in millions ): Unrealized losses on available-for sale investments Foreign currency translation adjustments Change in unrealized components of defined benefit obligations (1) Total Beginning balance as of June 30, 2018 $ (5.8 ) $ (74.0 ) $ (23.1 ) $ (102.9 ) Other comprehensive income (loss) before reclassification 0.1 (13.1 ) — (13.0 ) Amounts reclassified to accumulated other comprehensive loss 0.2 — 0.6 0.8 Net current-period other comprehensive income (loss) 0.3 (13.1 ) 0.6 (12.2 ) Ending balance as of September 29, 2018 $ (5.5 ) $ (87.1 ) $ (22.5 ) $ (115.1 ) (1) The amount reclassified out of accumulated other comprehensive loss represents the amortization of actuarial losses included as a component of cost of revenues, research and development (“R&D”) and SG&A in the Consolidated Statement of Operations for the three months ended September 29, 2018 . There was no tax impact for the three months ended September 29, 2018 . Refer to “ Note 16. Employee Pension and Other Benefit Plans ” for more details on the computation of net periodic cost for pension plans. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation and components of tangible assets acquired | The identified intangible assets acquired, as of the AW Close Date, were as follows (in millions) : Tangible assets acquired: $ 59.3 Intangible assets acquired: Developed technology 113.5 Customer relationships 75.0 Trade names 28.0 In-process research and development 9.0 Customer Backlog 6.5 Goodwill 178.5 Total consideration transferred $ 469.8 The preliminary allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the AW Close Date, were as follows (in millions) : Cash $ 16.1 Accounts receivable 43.0 Inventory 33.5 Property and equipment 33.5 Other assets 7.6 Accounts payable (10.9 ) Other liabilities (29.6 ) Deferred revenue (10.2 ) Deferred tax liabilities (23.7 ) Net tangible assets acquired $ 59.3 The identified assets acquired, were as follows (in millions) : Tangible assets acquired: $ 11.8 Intangible assets acquired: Developed technology 15.5 Customer relationships 11.0 Other 0.3 Goodwill 17.8 Total purchase price $ 56.4 The allocation of the purchase price, were as follows (in millions) : Cash $ 0.2 Accounts receivable 3.2 Inventory 10.1 Property and equipment 1.2 Accounts payable (1.7 ) Other liabilities, net (1.2 ) Net tangible assets acquired $ 11.8 |
Balance Sheet and Other Detai_2
Balance Sheet and Other Details (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of components of accounts receivable allowance | The following table presents the activities and balances for allowance for doubtful accounts, as follows ( in millions ): June 30, 2018 Charged to Costs and Expenses Deductions (1) September 29, 2018 Allowance for doubtful accounts $ 2.4 $ 0.4 $ (0.3 ) $ 2.5 (1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries. |
Schedule of components of Inventories | The following table presents the components of inventories, net, as follows ( in millions ): September 29, 2018 June 30, 2018 Finished goods $ 33.5 $ 31.7 Work in process 20.6 24.4 Raw materials 35.4 36.2 Inventories, net $ 89.5 $ 92.3 |
Schedule of components of prepayments and other current assets | The following table presents the components of prepayments and other current assets, as follo ws ( in millions ): September 29, 2018 June 30, 2018 Prepayments $ 12.7 $ 11.0 Asset held for sale 3.0 3.0 Other current assets 37.3 42.3 Prepayments and other current assets $ 53.0 $ 56.3 |
Schedule of components of other current liabilities | The following table presents the components of other current liabilities, as follows ( in millions ): September 29, 2018 June 30, 2018 Customer prepayments $ 38.0 $ 37.9 Restructuring accrual 11.4 7.4 Income tax payable 7.5 5.9 Warranty accrual 4.7 4.7 VAT liabilities 1.8 1.7 Foreign exchange forward contracts liability 3.1 11.7 Other 8.3 9.6 Other current liabilities $ 74.8 $ 78.9 |
Schedule of components of other non-current liabilities | The components of other non-current liabilities were as follo ws ( in millions ): September 29, 2018 June 30, 2018 Pension and post-employment benefits $ 98.8 $ 100.0 Financing obligation 26.7 26.8 Deferred tax liability 18.1 20.5 Long-term deferred revenue 11.1 11.3 Other 31.8 22.2 Other non-current liabilities $ 186.5 $ 180.8 |
Investments, Forward Contract_2
Investments, Forward Contracts and Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of available-for-sale securities | As of June 30, 2018 , the Company’s available-for-sale securities were as follows ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: U.S. treasuries $ 36.0 $ — $ (0.1 ) $ 35.9 U.S. agencies 13.3 — (0.1 ) 13.2 Municipal bonds and sovereign debt instruments 2.7 — — 2.7 Asset-backed securities 23.9 — (0.4 ) 23.5 Corporate securities 114.9 — (0.6 ) 114.3 Total available-for-sale securities $ 190.8 $ — $ (1.2 ) $ 189.6 As of September 29, 2018 , the Company’s available-for-sale securities were as follows ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: U.S. treasuries $ 4.0 $ — $ — $ 4.0 U.S. agencies 8.8 — (0.1 ) 8.7 Municipal bonds and sovereign debt instruments 2.7 — — 2.7 Asset-backed securities 7.0 — (0.3 ) 6.7 Corporate securities 29.0 — (0.4 ) 28.6 Total available-for-sale debt securities $ 51.5 $ — $ (0.8 ) $ 50.7 |
Schedule of contractual maturities of available-for-sale securities | As of September 29, 2018 , contractual maturities of the Company’s debt securities classified as available-for-sale were as follows ( in millions ): Amortized Cost/ Carrying Cost Estimated Fair Value Amounts maturing in less than 1 year $ 32.0 $ 31.7 Amounts maturing in 1 - 5 years 18.6 18.3 Amounts maturing in more than 5 years 0.9 0.7 Total debt available-for-sale securities $ 51.5 $ 50.7 |
Schedule of assets measured at fair value | Assets measured at fair value as of September 29, 2018 and June 30, 2018 are summarized below ( in millions ): September 29, 2018 June 30, 2018 Total Level 1 Investments Level 2 Investments Total Level 1 Investments Level 2 Investments Assets: Debt available-for-sale securities U.S. treasuries $ 4.0 $ 4.0 $ — $ 35.9 $ 35.9 $ — U.S. agencies 8.7 — 8.7 13.2 — 13.2 Municipal bonds and sovereign debt instruments 2.7 — 2.7 2.7 — 2.7 Asset-backed securities 6.7 — 6.7 23.5 — 23.5 Corporate securities 28.6 — 28.6 114.3 — 114.3 Total debt available-for-sale securities 50.7 4.0 46.7 189.6 35.9 153.7 Money market funds 329.1 329.1 — 354.9 354.9 — Trading securities 1.6 1.6 — 1.6 1.6 — Foreign currency forward contracts 1.9 — 1.9 2.7 — 2.7 Total assets (1) $ 383.3 $ 334.7 $ 48.6 $ 548.8 $ 392.4 $ 156.4 Liability: Foreign currency forward contracts 3.2 — 3.2 11.7 — 11.7 Total liabilities (2) $ 3.2 $ — $ 3.2 $ 11.7 $ — $ 11.7 (1) $318.0 million in cash and cash equivalents, $51.7 million in short-term investments, $7.1 million in restricted cash, $1.9 million in prepayments and other current assets, and $4.6 million in other non-current assets on the Company’s Consolidated Balance Sheets as of September 29, 2018 . $364.8 million in cash and cash equivalents, $169.3 million in short-term investments, $7.3 million in restricted cash, $2.7 million in other current assets, and $4.7 million in other non-current assets on the Company’s Consolidated Balance Sheets as of June 30, 2018 . (2) $3.2 million and $11.7 million in other current liabilities on the Company’s Consolidated Balance Sheets as of September 29, 2018 and June 30, 2018 , respectively. |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | Changes in goodwill allocated to the Company’s reportable segments are as follows (in millions) : Network Enablement Service Enablement Optical Security and Performance Products Total Balance as of June 30, 2018 $ 328.0 $ — $ 8.3 $ 336.3 Other 6.3 — — 6.3 Currency translation adjustments (1.5 ) — — (1.5 ) Balance as of September 29, 2018 $ 332.8 $ — $ 8.3 $ 341.1 |
Acquired Developed Technology_2
Acquired Developed Technology and Other Intangibles (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Acquired Developed Technology and Other Intangibles | |
Schedule of acquired developed technology and other intangibles | The following tables present details of the Company’s acquired developed technology, customer relationships and other intangibles ( in millions ): As of September 29, 2018 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 453.0 $ (339.8 ) $ 113.2 Customer relationships 174.8 (105.2 ) 69.6 In-process research and development 9.0 — 9.0 Other (1) 38.4 (13.6 ) 24.8 Total intangibles $ 675.2 $ (458.6 ) $ 216.6 As of June 30, 2018 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 447.8 $ (326.4 ) $ 121.4 Customer relationships 175.4 (97.1 ) 78.3 In-process research and development 9.0 — 9.0 Other (1) 42.8 (16.4 ) 26.4 Total intangibles $ 675.0 $ (439.9 ) $ 235.1 (1) Other intangibles consist of customer backlog, non-competition agreements, patents, proprietary know-how and trade secrets, trademarks and trade names. |
Finite-lived intangible assets amortization expense | The following table presents the amortization recorded relating to acquired developed technology, customer relationships and other intangibles ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Cost of revenues $ 9.4 $ 4.1 Operating expenses 9.8 3.1 Total amortization of intangible assets $ 19.2 $ 7.2 |
Schedule of estimated future amortization | Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of September 29, 2018 , and assuming no future impairment of the underlying assets, the estimated future amortization is as follows ( in millions ): Fiscal Years Remainder of 2019 $ 49.6 2020 59.8 2021 55.5 2022 28.3 2023 14.4 Total amortization $ 207.6 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of carrying amounts of the liability and equity components of convertible debt | The following table presents the carrying amounts of the liability and equity components ( in millions ): September 29, 2018 June 30, 2018 Principal amount of 0.625% Senior Convertible Notes $ 142.7 $ 277.0 Principal amount of 1.00% Senior Convertible Notes 460.0 460.0 Principal amount of 1.75% Senior Convertible Notes 225.0 225.0 Unamortized discount of liability component (114.6 ) (121.1 ) Unamortized debt issuance cost (7.3 ) (7.7 ) Carrying amount of liability component $ 705.8 $ 833.2 Current portion of long-term debt 142.7 275.3 Long-term debt, net of current portion $ 563.1 $ 557.9 Carrying amount of equity component (1) $ 239.1 $ 239.1 (1) Included in additional paid-in-capital on the Consolidated Balance Sheets. |
Summary of effective interest rate and the interest expense for the contractual interest and the accretion of debt discount | The following table presents the interest expense for contractual interest, amortization of debt issuance cost and accretion of debt discount ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Interest expense-contractual interest $ 2.5 $ 2.0 Amortization of debt issuance cost 0.4 0.7 Accretion of debt discount 6.5 9.1 |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of various restructuring plans | The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three months ended September 29, 2018 were as follows (in millions) : Balance Three Months Ended September 29, 2018 Charges (Benefits) Cash Settlements Non-cash Settlements and Other Adjustments Balance Fiscal 2019 Plan NSE, including AW Restructuring Plan $ — $ 14.5 $ (2.0 ) $ — $ 12.5 Fiscal 2018 Plan Trilithic Restructuring Plan (1) (2) 2.9 — (2.9 ) — — Fiscal 2017 Plan Focused NSE Restructuring Plan (1) (2) 1.9 0.4 (2.0 ) 0.1 0.4 Plans Prior to Fiscal 2017 NE Lease Restructuring Plan (2) 1.2 — (0.3 ) — 0.9 Other Plans (1)(2) 1.5 (0.1 ) (0.6 ) — 0.8 Total $ 7.5 $ 14.8 $ (7.8 ) $ 0.1 $ 14.6 (1) Plan type includes workforce reduction cost. (2) Plan type includes lease exit cost. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of the impact on the entity's results of operations of recording stock-based compensation by function | The impact on the Company’s results of operations of recording stock-based compensation by function for the three months ended September 29, 2018 and September 30, 2017 , as follows ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Cost of revenues $ 0.8 $ 0.9 Research and development 1.2 1.1 Selling, general and administrative 6.1 5.5 Total stock-based compensation expense $ 8.1 $ 7.5 |
Employee Pension and Other Be_2
Employee Pension and Other Benefit Plans (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic cost for the pension and benefits plans | The following table presents the components of net periodic cost for the pension and benefits plans ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Service cost $ — $ — Interest cost 0.6 0.7 Expected return on plan assets (0.4 ) (0.4 ) Amortization of net actuarial losses 0.6 0.4 Net periodic benefit cost $ 0.8 $ 0.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of changes in the entity's warranty reserve | The following table presents the changes in the Company’s warranty reserve during fiscal 2019 and fiscal 2018 ( in millions ): Three Months Ended September 29, 2018 September 30, 2017 Balance as of beginning of period $ 8.2 $ 5.8 Provision for warranty 0.4 0.5 Utilization of reserve (1.2 ) (0.9 ) Adjustments related to pre-existing warranties (including changes in estimates) 1.6 0.7 Acquisition related (1) — 0.3 Balance as of end of period $ 9.0 $ 6.4 (1) See “ Note 6. Acquisitions ” of the Notes to Consolidated Financial Statements for detail of acquisition. |
Operating Segments and Geogra_2
Operating Segments and Geographic Information (Tables) | 3 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of information on reportable segments | Information on reportable segments is as follows (in millions): Three Months Ended September 29, 2018 Network Enablement Service Enablement Network and Service Enablement Optical Security and Performance Products Other Items Consolidated GAAP Measures Product revenue $ 149.9 $ 13.6 $ 163.5 $ 77.6 $ — $ 241.1 Service revenue 14.6 12.6 27.2 0.2 — 27.4 Net revenue 164.5 26.2 190.7 77.8 — 268.5 Gross profit 102.9 18.3 121.2 39.4 (10.2 ) 150.4 Gross margin 62.6 % 69.8 % 63.6 % 50.6 % 56.0 % Operating income 16.4 27.4 (45.0 ) (1.2 ) Operating margin 8.6 % 35.2 % (0.4 )% Three Months Ended September 30, 2017 Network Enablement Service Enablement Network and Service Enablement Optical Security and Performance Products Other Items Consolidated GAAP Measures Product revenue $ 102.8 $ 8.6 $ 111.4 $ 53.7 $ — $ 165.1 Service revenue 8.8 16.3 25.1 0.7 — 25.8 Net revenue 111.6 24.9 136.5 54.4 — 190.9 Gross profit 70.3 17.3 87.6 31.4 (6.3 ) 112.7 Gross margin 63.0 % 69.5 % 64.2 % 57.7 % 59.0 % Operating income 3.9 22.2 (19.4 ) 6.7 Operating margin 2.9 % 40.8 % 3.5 % Three Months Ended September 29, 2018 September 30, 2017 Corporate reconciling items impacting gross profit: Total segment gross profit $ 160.6 $ 119.0 Stock-based compensation (0.8 ) (0.9 ) Amortization of intangibles (9.4 ) (4.1 ) Other charges unrelated to core operating performance (1) — (1.3 ) GAAP gross profit $ 150.4 $ 112.7 Corporate reconciling items impacting operating income: Total segment operating income $ 43.8 $ 26.1 Stock-based compensation (8.1 ) (7.5 ) Amortization of intangibles (19.2 ) (7.2 ) Other charges unrelated to core operating performance (1) (2.9 ) (3.2 ) Restructuring and related charges (14.8 ) (1.5 ) GAAP operating income $ (1.2 ) $ 6.7 (1) During the three months ended September 29, 2018 and September 30, 2017 , other charges unrelated to core operating performance primarily consisted of acquisition and integration related transformational initiatives such as the implementation of simplified automated processes, site consolidation and reorganizations, amortization of acquisition related inventory step-up, and loss on disposal of long-lived assets. |
Schedule of revenue by geographic regions | The following table presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue, (in millions): Three Months Ended September 29, 2018 September 30, 2017 Product Revenue Service Revenue Total Product Revenue Service Revenue Total Americas: United States $ 60.1 $ 12.7 $ 72.8 $ 64.6 $ 13.0 $ 77.6 Other Americas 17.9 3.1 21.0 12.0 5.0 17.0 Total Americas $ 78.0 $ 15.8 $ 93.8 $ 76.6 $ 18.0 $ 94.6 Asia-Pacific: Greater China $ 58.7 $ 0.2 $ 58.9 $ 22.4 $ 0.6 $ 23.0 Other Asia 36.0 3.5 39.5 13.1 1.1 14.2 Total Asia-Pacific $ 94.7 $ 3.7 $ 98.4 $ 35.5 $ 1.7 $ 37.2 EMEA: Switzerland $ 25.7 $ — $ 25.7 $ 28.3 $ — $ 28.3 Other EMEA 42.7 7.9 50.6 24.7 6.1 30.8 Total EMEA $ 68.4 $ 7.9 $ 76.3 $ 53.0 $ 6.1 $ 59.1 Total net revenue $ 241.1 $ 27.4 $ 268.5 $ 165.1 $ 25.8 $ 190.9 |
Recently Issued Accounting Pr_3
Recently Issued Accounting Pronouncements (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
ASSETS | |||
Accounts receivable, net | $ 224.1 | $ 218.6 | |
Prepayments and other assets | 53 | 56.3 | |
Deferred income taxes | 113.4 | 114.3 | |
Other non-current assets | 20.7 | 15.4 | |
Total assets | 1,888.8 | 2,026.8 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Deferred revenue | 61.5 | 60.6 | |
Accrued payroll and related expenses | 57.7 | 52.8 | |
Other current liabilities | 74.8 | 78.9 | |
Total stockholders’ equity | 186.5 | 180.8 | |
Total liabilities and stockholders’ equity | 709.6 | 734.9 | |
Total liabilities and stockholders’ equity | 1,888.8 | 2,026.8 | |
Revenues: | |||
Total net revenue | 268.5 | $ 190.9 | |
Cost of revenues: | |||
Amortization of acquired technologies | 9.4 | 4.1 | |
Total cost of revenue | 118.1 | 78.2 | |
Gross profit | 150.4 | 112.7 | |
Income from operations | (1.2) | 6.7 | |
Loss before taxes | (9.6) | (5.6) | |
Provision for income taxes | 5.7 | 2 | |
Net loss | (15.3) | $ (7.6) | |
Net loss per common share: | |||
Basic and diluted (in dollars per share) | $ (0.03) | ||
Shares used in per share calculations: | |||
Basic and diluted (in shares) | 228.1 | ||
As Reported | |||
ASSETS | |||
Accounts receivable, net | 217.5 | ||
Prepayments and other assets | 54.8 | ||
Deferred income taxes | 114.5 | ||
Other non-current assets | 13.6 | ||
Total assets | 2,022.6 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Deferred revenue | 71.9 | ||
Accrued payroll and related expenses | 51.4 | ||
Other current liabilities | 77 | ||
Total stockholders’ equity | 182.8 | ||
Total liabilities and stockholders’ equity | 720.7 | ||
Total liabilities and stockholders’ equity | 2,022.6 | ||
Revenues: | |||
Total net revenue | $ 195.2 | ||
Cost of revenues: | |||
Total cost of revenue | 79 | ||
Gross profit | 116.2 | ||
Income from operations | 10 | ||
Loss before taxes | (2.3) | ||
Provision for income taxes | 2.5 | ||
Net loss | $ (4.8) | ||
Net loss per common share: | |||
Basic and diluted (in dollars per share) | $ (0.02) | ||
Shares used in per share calculations: | |||
Basic and diluted (in shares) | 228.1 | ||
Adjustment | Accounting Standards Update 2014-09 | |||
ASSETS | |||
Accounts receivable, net | 1.1 | ||
Prepayments and other assets | 1.5 | ||
Deferred income taxes | (0.2) | ||
Other non-current assets | 1.8 | ||
Total assets | 4.2 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Deferred revenue | (11.3) | ||
Accrued payroll and related expenses | 1.4 | ||
Other current liabilities | 1.9 | ||
Total stockholders’ equity | (2) | ||
Total liabilities and stockholders’ equity | 14.2 | ||
Total liabilities and stockholders’ equity | $ 4.2 | ||
Revenues: | |||
Total net revenue | $ (4.3) | ||
Cost of revenues: | |||
Total cost of revenue | (0.8) | ||
Gross profit | (3.5) | ||
Income from operations | (3.3) | ||
Loss before taxes | (3.3) | ||
Provision for income taxes | (0.5) | ||
Net loss | $ (2.8) | ||
Net loss per common share: | |||
Basic and diluted (in dollars per share) | $ (0.01) | ||
Shares used in per share calculations: | |||
Basic and diluted (in shares) | 0 | ||
Product | |||
Revenues: | |||
Total net revenue | 241.1 | $ 165.1 | |
Cost of revenues: | |||
Cost of goods and services sold | 97.9 | 62.6 | |
Product | As Reported | |||
Revenues: | |||
Total net revenue | 171.9 | ||
Cost of revenues: | |||
Cost of goods and services sold | 63.5 | ||
Product | Adjustment | Accounting Standards Update 2014-09 | |||
Revenues: | |||
Total net revenue | (6.8) | ||
Cost of revenues: | |||
Cost of goods and services sold | (0.9) | ||
Service | |||
Revenues: | |||
Total net revenue | 27.4 | 25.8 | |
Cost of revenues: | |||
Cost of goods and services sold | $ 10.8 | 11.5 | |
Service | As Reported | |||
Revenues: | |||
Total net revenue | 23.3 | ||
Cost of revenues: | |||
Cost of goods and services sold | 11.4 | ||
Amortization of acquired technologies | 4.1 | ||
Service | Adjustment | Accounting Standards Update 2014-09 | |||
Revenues: | |||
Total net revenue | 2.5 | ||
Cost of revenues: | |||
Cost of goods and services sold | 0.1 | ||
Amortization of acquired technologies | $ 0 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Contract asset | $ 1.4 | $ 1.3 |
Change in Contract with Customer, Liability (Roll Forward) | ||
Balance at beginning of period | 71.9 | |
Revenue deferrals for new contracts | 26.7 | |
Revenue recognized during the period | (26) | |
Balance at end of period | 72.6 | |
Short-term deferred revenue | 61.5 | 60.6 |
Long-term deferred revenue | $ 11.1 | $ 11.3 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Payment period from invoice date | 30 days | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Payment period from invoice date | 90 days |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Millions | Sep. 29, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 236.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 94.00% |
Remaining performance obligation, period | 12 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | May 29, 2018 | Aug. 21, 2013 | |
Numerator: | ||||
Net loss | $ (15.3) | $ (7.6) | ||
Weighted-average number of common shares outstanding | ||||
Basic (in shares) | 227.2 | 228.1 | ||
Effect of dilutive securities from stock-based benefit plans (in shares) | 0 | 0 | ||
Diluted (in shares) | 227.2 | 228.1 | ||
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.07) | $ (0.03) | ||
Diluted (in dollars per share) | $ (0.07) | $ (0.03) | ||
Anti-dilutive securities excluded from computation of earnings per share | ||||
Total potentially dilutive securities (in shares) | 8.6 | 9.7 | ||
2033 Notes | Convertible Notes | ||||
Convertible notes | ||||
Interest rate on senior convertible notes | 0.625% | 0.625% | ||
Conversion price of debt (in dollars per share) | $ 11.28 | |||
2024 Notes | Convertible Notes | ||||
Convertible notes | ||||
Interest rate on senior convertible notes | 1.00% | |||
Conversion price of debt (in dollars per share) | $ 13.22 | |||
2023 Notes | Convertible Notes | ||||
Convertible notes | ||||
Interest rate on senior convertible notes | 1.75% | 1.75% | ||
Conversion price of debt (in dollars per share) | $ 13.94 | |||
Stock options and ESPP | ||||
Anti-dilutive securities excluded from computation of earnings per share | ||||
Total potentially dilutive securities (in shares) | 1.6 | 1.7 | ||
Restricted Stock Units | ||||
Anti-dilutive securities excluded from computation of earnings per share | ||||
Total potentially dilutive securities (in shares) | 7 | 8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | $ 734,900,000 | |
Other comprehensive income (loss) before reclassification | (13,000,000) | |
Amounts reclassified to accumulated other comprehensive loss | 800,000 | |
Net change in accumulated other comprehensive (loss) income | (12,200,000) | $ 10,700,000 |
Balance at the end of the period | 709,600,000 | |
Tax impact of amortization of actuarial gains (losses) | 0 | |
Total | ||
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | (102,900,000) | |
Balance at the end of the period | (115,100,000) | |
Unrealized losses on available-for sale investments | ||
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | (5,800,000) | |
Other comprehensive income (loss) before reclassification | 100,000 | |
Amounts reclassified to accumulated other comprehensive loss | 200,000 | |
Net change in accumulated other comprehensive (loss) income | 300,000 | |
Balance at the end of the period | (5,500,000) | |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | (74,000,000) | |
Other comprehensive income (loss) before reclassification | (13,100,000) | |
Amounts reclassified to accumulated other comprehensive loss | 0 | |
Net change in accumulated other comprehensive (loss) income | (13,100,000) | |
Balance at the end of the period | (87,100,000) | |
Change in unrealized components of defined benefit obligations | ||
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | (23,100,000) | |
Other comprehensive income (loss) before reclassification | 0 | |
Amounts reclassified to accumulated other comprehensive loss | 600,000 | |
Net change in accumulated other comprehensive (loss) income | 600,000 | |
Balance at the end of the period | $ (22,500,000) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Mar. 15, 2018 | Sep. 29, 2018 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||
Measurement period adjustment - increase in goodwill | $ 6.3 | ||
AW business | |||
Business Acquisition [Line Items] | |||
Cash purchase price | $ 469.8 | ||
Measurement period adjustment - increase in other liabilities | $ 6.3 | ||
AW business | Minimum | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 3 years | ||
AW business | Maximum | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 6 years | ||
Trilithic, Inc | |||
Business Acquisition [Line Items] | |||
Cash purchase price | $ 56.4 | ||
Trilithic, Inc | Minimum | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 3 years | ||
Trilithic, Inc | Maximum | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 5 years | ||
Customer Backlog | AW business | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 1 year |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 15, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 341.1 | $ 336.3 | |
AW business | |||
Business Acquisition [Line Items] | |||
Tangible assets acquired: | $ 59.3 | ||
Goodwill | 178.5 | ||
Total purchase price | 469.8 | ||
AW business | Developed technology | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | 113.5 | ||
AW business | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | 75 | ||
AW business | Trade names | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | 28 | ||
AW business | Customer Backlog | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | 6.5 | ||
Trilithic, Inc | |||
Business Acquisition [Line Items] | |||
Tangible assets acquired: | 11.8 | ||
Goodwill | 17.8 | ||
Total purchase price | 56.4 | ||
Trilithic, Inc | Developed technology | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | 15.5 | ||
Trilithic, Inc | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | 11 | ||
Trilithic, Inc | Other | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | $ 0.3 | ||
In-process research and development | AW business | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired: | $ 9 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 15, 2018 |
AW business | ||
Business Acquisition [Line Items] | ||
Cash | $ 16.1 | |
Accounts receivable | 43 | |
Inventory | 33.5 | |
Property and equipment | 33.5 | |
Other assets | 7.6 | |
Accounts payable | (10.9) | |
Other liabilities | (29.6) | |
Deferred revenue | (10.2) | |
Deferred tax liabilities | (23.7) | |
Net tangible assets acquired | $ 59.3 | |
Trilithic, Inc | ||
Business Acquisition [Line Items] | ||
Cash | $ 0.2 | |
Accounts receivable | 3.2 | |
Inventory | 10.1 | |
Property and equipment | 1.2 | |
Accounts payable | (1.7) | |
Other liabilities, net | (1.2) | |
Net tangible assets acquired | $ 11.8 |
Balance Sheet and Other Detai_3
Balance Sheet and Other Details - Accounts Receivable Reserves and Allowances (Details) $ in Millions | 3 Months Ended |
Sep. 29, 2018USD ($) | |
Components of accounts receivable reserves and allowances | |
Beginning balance | $ 2.4 |
Charged to Costs and Expenses | 0.4 |
Deductions | (0.3) |
Ending balance | $ 2.5 |
Balance Sheet and Other Detai_4
Balance Sheet and Other Details - Inventories (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 |
Inventories, net | ||
Finished goods | $ 33.5 | $ 31.7 |
Work in process | 20.6 | 24.4 |
Raw materials | 35.4 | 36.2 |
Inventories, net | $ 89.5 | $ 92.3 |
Balance Sheet and Other Detai_5
Balance Sheet and Other Details - Prepayments and Other Current Assets (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 |
Prepayments and other current assets | ||
Prepayments | $ 12.7 | $ 11 |
Asset held for sale | 3 | 3 |
Other current assets | 37.3 | 42.3 |
Prepayments and other current assets | $ 53 | $ 56.3 |
Balance Sheet and Other Detai_6
Balance Sheet and Other Details - Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 |
Other current liabilities | ||
Customer prepayments | $ 38 | $ 37.9 |
Restructuring accrual | 11.4 | 7.4 |
Income tax payable | 7.5 | 5.9 |
Warranty accrual | 4.7 | 4.7 |
VAT liabilities | 1.8 | 1.7 |
Foreign exchange forward contracts liability | 3.1 | 11.7 |
Other | 8.3 | 9.6 |
Other current liabilities | $ 74.8 | $ 78.9 |
Balance Sheet and Other Detai_7
Balance Sheet and Other Details - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 |
Other non-current liabilities | ||
Pension and post-employment benefits | $ 98.8 | $ 100 |
Financing obligation | 26.7 | 26.8 |
Deferred tax liability | 18.1 | 20.5 |
Long-term deferred revenue | 11.1 | 11.3 |
Other | 31.8 | 22.2 |
Other non-current liabilities | $ 186.5 | $ 180.8 |
Investments, Forward Contract_3
Investments, Forward Contracts and Fair Value Measurements - Available for Sale Securities Reconciliation (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 |
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | $ 51.5 | $ 190.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.8) | (1.2) |
Fair Value | 50.7 | 189.6 |
U.S. treasuries | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | 4 | 36 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (0.1) |
Fair Value | 4 | 35.9 |
U.S. agencies | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | 8.8 | 13.3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.1) | (0.1) |
Fair Value | 8.7 | 13.2 |
Municipal bonds and sovereign debt instruments | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | 2.7 | 2.7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2.7 | 2.7 |
Asset-backed securities | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | 7 | 23.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.3) | (0.4) |
Fair Value | 6.7 | 23.5 |
Corporate securities | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | 29 | 114.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.4) | (0.6) |
Fair Value | $ 28.6 | $ 114.3 |
Investments, Forward Contract_4
Investments, Forward Contracts and Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Investments, Forward Contracts and Fair Value Measurements | |||
Term of maturities of securities classified as current assets included in short-term investments | 12 months | ||
Total debt available-for-sale securities | $ 50,700,000 | $ 189,600,000 | |
Other-than-temporary impairment loss | 0 | $ 0 | |
Not designated | Foreign exchange forward contracts | |||
Foreign Currency Forward Contracts | |||
Derivative asset, fair value | 1,900,000 | 2,700,000 | |
Derivative liability, fair value | $ 3,200,000 | 11,700,000 | |
Derivative, term of contract | 120 days | ||
Gains (losses) on derivatives | $ (1,300,000) | $ 3,100,000 | |
Not designated | Foreign exchange forward contracts | Held to purchase | |||
Foreign Currency Forward Contracts | |||
Notional amount of forward contracts | 176,200,000 | 167,500,000 | |
Not designated | Foreign exchange forward contracts | Held to sell | |||
Foreign Currency Forward Contracts | |||
Notional amount of forward contracts | 31,200,000 | 28,600,000 | |
Short-term investments | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Deferred compensation plan assets | 1,600,000 | 1,600,000 | |
Short-term investments | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Total debt available-for-sale securities | 50,100,000 | 167,700,000 | |
Other non-current assets | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Total debt available-for-sale securities | 600,000 | 700,000 | |
Debt securities | Short-term investments | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Deferred compensation plan assets | 400,000 | 400,000 | |
Money market instruments and funds | Short-term investments | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Deferred compensation plan assets | 300,000 | 300,000 | |
Equity securities | Short-term investments | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Deferred compensation plan assets | $ 900,000 | 900,000 | |
Cash equivalents | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Total debt available-for-sale securities | $ 21,200,000 |
Investments, Forward Contract_5
Investments, Forward Contracts and Fair Value Measurements - Contractual Maturities (Details) $ in Millions | Sep. 29, 2018USD ($) |
Amortized Cost/ Carrying Cost | |
Amounts maturing in less than 1 year | $ 32 |
Amounts maturing in 1 - 5 years | 18.6 |
Amounts maturing in more than 5 years | 0.9 |
Total debt available-for-sale securities | 51.5 |
Estimated Fair Value | |
Amounts maturing in less than 1 year | 31.7 |
Amounts maturing in 1 - 5 years | 18.3 |
Amounts maturing in more than 5 years | 0.7 |
Total debt available-for-sale securities | $ 50.7 |
Investments, Forward Contract_6
Investments, Forward Contracts and Fair Value Measurements - Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 |
Debt available-for-sale securities | ||
Total debt available-for-sale securities | $ 50.7 | $ 189.6 |
U.S. treasuries | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 4 | 35.9 |
Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 8.7 | 13.2 |
Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 2.7 | 2.7 |
Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 6.7 | 23.5 |
Corporate securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 28.6 | 114.3 |
Recurring basis | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 50.7 | 189.6 |
Money market funds | 329.1 | 354.9 |
Trading securities | 1.6 | 1.6 |
Foreign currency forward contracts | 1.9 | 2.7 |
Total assets | 383.3 | 548.8 |
Liability: | ||
Foreign currency forward contracts | 3.2 | 11.7 |
Total liabilities | 3.2 | 11.7 |
Recurring basis | Cash and cash equivalents | ||
Debt available-for-sale securities | ||
Total assets | 318 | 364.8 |
Recurring basis | Short-term investments | ||
Debt available-for-sale securities | ||
Total assets | 51.7 | 169.3 |
Recurring basis | Restricted cash | ||
Debt available-for-sale securities | ||
Total assets | 7.1 | 7.3 |
Recurring basis | Prepayments and other current assets | ||
Debt available-for-sale securities | ||
Total assets | 1.9 | |
Recurring basis | Other current assets | ||
Debt available-for-sale securities | ||
Total assets | 2.7 | |
Recurring basis | Other non-current assets | ||
Debt available-for-sale securities | ||
Total assets | 4.6 | 4.7 |
Recurring basis | Other current liabilities | ||
Liability: | ||
Total liabilities | 3.2 | 11.7 |
Recurring basis | U.S. treasuries | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 4 | 35.9 |
Recurring basis | Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 8.7 | 13.2 |
Recurring basis | Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 2.7 | 2.7 |
Recurring basis | Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 6.7 | 23.5 |
Recurring basis | Corporate securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 28.6 | 114.3 |
Recurring basis | Level 1 Investments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 4 | 35.9 |
Money market funds | 329.1 | 354.9 |
Trading securities | 1.6 | 1.6 |
Foreign currency forward contracts | 0 | 0 |
Total assets | 334.7 | 392.4 |
Liability: | ||
Foreign currency forward contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring basis | Level 1 Investments | U.S. treasuries | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 4 | 35.9 |
Recurring basis | Level 1 Investments | Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 Investments | Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 Investments | Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 Investments | Corporate securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Recurring basis | Level 2 Investments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 46.7 | 153.7 |
Money market funds | 0 | 0 |
Trading securities | 0 | 0 |
Foreign currency forward contracts | 1.9 | 2.7 |
Total assets | 48.6 | 156.4 |
Liability: | ||
Foreign currency forward contracts | 3.2 | 11.7 |
Total liabilities | 3.2 | 11.7 |
Recurring basis | Level 2 Investments | U.S. treasuries | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Recurring basis | Level 2 Investments | Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 8.7 | 13.2 |
Recurring basis | Level 2 Investments | Municipal bonds and sovereign debt instruments | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 2.7 | 2.7 |
Recurring basis | Level 2 Investments | Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 6.7 | 23.5 |
Recurring basis | Level 2 Investments | Corporate securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | $ 28.6 | $ 114.3 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended |
Sep. 29, 2018USD ($) | |
Changes in goodwill | |
Balance at the beginning of the period | $ 336.3 |
Acquisitions | 6.3 |
Currency translation adjustments | (1.5) |
Balance at the end of the period | 341.1 |
Network Enablement | |
Changes in goodwill | |
Balance at the beginning of the period | 328 |
Acquisitions | 6.3 |
Currency translation adjustments | (1.5) |
Balance at the end of the period | 332.8 |
Service Enablement | |
Changes in goodwill | |
Balance at the beginning of the period | 0 |
Currency translation adjustments | 0 |
Balance at the end of the period | 0 |
Optical Security and Performance Products | |
Changes in goodwill | |
Balance at the beginning of the period | 8.3 |
Currency translation adjustments | 0 |
Balance at the end of the period | $ 8.3 |
Acquired Developed Technology_3
Acquired Developed Technology and Other Intangibles (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Acquired developed technology, customer relationships and other intangibles | |||
Gross Carrying Amount | $ 675.2 | $ 675 | |
Accumulated Amortization | (458.6) | (439.9) | |
Net | 216.6 | 235.1 | |
Cost of revenues | 9.4 | $ 4.1 | |
Operating expenses | 9.8 | 3.1 | |
Total amortization of intangible assets | 19.2 | $ 7.2 | |
Estimated future amortization expense | |||
Remainder of 2019 | 49.6 | ||
2,020 | 59.8 | ||
2,021 | 55.5 | ||
2,022 | 28.3 | ||
2,023 | 14.4 | ||
Total amortization | 207.6 | ||
In-process research and development | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 9 | 9 | |
Acquired developed technology | |||
Acquired developed technology, customer relationships and other intangibles | |||
Gross Carrying Amount | 453 | 447.8 | |
Accumulated Amortization | (339.8) | (326.4) | |
Net | 113.2 | 121.4 | |
Customer relationships | |||
Acquired developed technology, customer relationships and other intangibles | |||
Gross Carrying Amount | 174.8 | 175.4 | |
Accumulated Amortization | (105.2) | (97.1) | |
Net | 69.6 | 78.3 | |
Other | |||
Acquired developed technology, customer relationships and other intangibles | |||
Gross Carrying Amount | 38.4 | 42.8 | |
Accumulated Amortization | (13.6) | (16.4) | |
Net | $ 24.8 | $ 26.4 |
Debt - Carrying Amounts of the
Debt - Carrying Amounts of the Liability and Equity Components (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Jun. 30, 2018 | May 29, 2018 | Aug. 21, 2013 |
Carrying amounts of the liability and equity components: | ||||
Current portion of long-term debt | $ 142.7 | $ 275.3 | ||
Long-term debt, net of current portion | 563.1 | 557.9 | ||
Convertible Notes | ||||
Carrying amounts of the liability and equity components: | ||||
Unamortized discount of liability component | (114.6) | (121.1) | ||
Unamortized debt issuance cost | (7.3) | (7.7) | ||
Carrying amount of liability component | 705.8 | 833.2 | ||
Carrying amount of equity component | 239.1 | 239.1 | ||
Convertible Notes | 0.625% Senior Convertible Notes | ||||
Carrying amounts of the liability and equity components: | ||||
Principal amount of notes | $ 142.7 | 277 | ||
Interest rate on senior convertible notes | 0.625% | 0.625% | ||
Convertible Notes | 1.00% Senior Convertible Notes | ||||
Carrying amounts of the liability and equity components: | ||||
Principal amount of notes | $ 460 | 460 | ||
Interest rate on senior convertible notes | 1.00% | |||
Convertible Notes | 1.75% Senior Convertible Notes | ||||
Carrying amounts of the liability and equity components: | ||||
Principal amount of notes | $ 225 | $ 225 | ||
Interest rate on senior convertible notes | 1.75% | 1.75% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Oct. 10, 2018 | Aug. 15, 2018 | May 29, 2018 | Mar. 03, 2017 | Aug. 21, 2013 | Mar. 31, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Mar. 22, 2017 |
Debt details | ||||||||||
Repayments of convertible debt | $ 134,300,000 | $ 162,000,000 | ||||||||
1.75% Senior Convertible Notes | Convertible Notes | ||||||||||
Debt details | ||||||||||
Aggregate principal amount of convertible debt | $ 225,000,000 | |||||||||
Interest rate on senior convertible notes | 1.75% | 1.75% | ||||||||
Proceeds from convertible debt | $ 69,500,000 | |||||||||
Proceeds from debt, net of issuance costs | $ 67,300,000 | |||||||||
Effective discount rate | 5.30% | |||||||||
Derivative, term of contract | 5 years | |||||||||
Expected remaining term | 4 years 7 months | |||||||||
Amount outstanding | $ 225,000,000 | $ 225,000,000 | ||||||||
Fair market value of convertible debt | $ 242,500,000 | 232,400,000 | ||||||||
0.625% Senior Convertible Notes | Convertible Notes | ||||||||||
Debt details | ||||||||||
Aggregate principal amount of convertible debt | $ 650,000,000 | |||||||||
Interest rate on senior convertible notes | 0.625% | 0.625% | ||||||||
Proceeds from debt, net of issuance costs | $ 636,300,000 | |||||||||
Effective discount rate | 5.40% | |||||||||
Derivative, term of contract | 5 years | |||||||||
Repayments of convertible debt | $ 134,300,000 | |||||||||
Amount outstanding | $ 142,700,000 | 277,000,000 | ||||||||
Fair market value of convertible debt | $ 144,300,000 | 281,000,000 | ||||||||
1.00% Senior Convertible Notes | Convertible Notes | ||||||||||
Debt details | ||||||||||
Aggregate principal amount of convertible debt | $ 400,000,000 | $ 60,000,000 | ||||||||
Interest rate on senior convertible notes | 1.00% | |||||||||
Proceeds from debt, net of issuance costs | $ 451,100,000 | |||||||||
Effective discount rate | 4.80% | |||||||||
Derivative, term of contract | 7 years | |||||||||
Expected remaining term | 5 years 5 months | |||||||||
Amount outstanding | $ 460,000,000 | 460,000,000 | ||||||||
Fair market value of convertible debt | $ 496,300,000 | $ 465,300,000 | ||||||||
Subsequent Event | 0.625% Senior Convertible Notes | Convertible Notes | ||||||||||
Debt details | ||||||||||
Debt redemption | $ 142,700,000 | |||||||||
Debt redemption, percentage of principal amount redeemed | 100.00% | |||||||||
Exchange Transaction | 1.75% Senior Convertible Notes | Convertible Notes | ||||||||||
Debt details | ||||||||||
Debt Conversion, Converted Instrument, Amount | $ 155,500,000 | |||||||||
Exchange Transaction | 0.625% Senior Convertible Notes | Convertible Notes | ||||||||||
Debt details | ||||||||||
Repayments of debt | $ 151,500,000 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | ||
Interest expense-contractual interest | $ 2.5 | $ 2 |
Amortization of debt issuance cost | 0.4 | 0.7 |
Accretion of debt discount | $ 6.5 | $ 9.1 |
Restructuring and Related Cha_3
Restructuring and Related Charges (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 29, 2018USD ($)employee | Dec. 30, 2017employee | Sep. 30, 2017USD ($) | Jul. 01, 2017employee | Jun. 30, 2018USD ($) | |
Summary of various restructuring plans | |||||
Balance at the beginning of the period | $ 7.5 | ||||
Charges (Benefits) | 14.8 | $ 1.5 | |||
Cash Settlements | (7.8) | ||||
Non-cash Settlements and Other Adjustments | 0.1 | ||||
Balance at the end of the period | 14.6 | ||||
Long-term restructuring accrual | 3.2 | $ 0.1 | |||
NSE, including AW Restructuring Plan | |||||
Summary of various restructuring plans | |||||
Balance at the beginning of the period | 0 | ||||
Charges (Benefits) | 14.5 | ||||
Cash Settlements | (2) | ||||
Non-cash Settlements and Other Adjustments | 0 | ||||
Balance at the end of the period | $ 12.5 | ||||
Number of employees impacted (employee) | employee | 240 | ||||
Trilithic Restructuring Plan | |||||
Summary of various restructuring plans | |||||
Balance at the beginning of the period | $ 2.9 | ||||
Charges (Benefits) | 0 | ||||
Cash Settlements | (2.9) | ||||
Non-cash Settlements and Other Adjustments | 0 | ||||
Balance at the end of the period | 0 | ||||
Number of employees impacted (employee) | employee | 40 | ||||
Focused NSE Restructuring Plan | |||||
Summary of various restructuring plans | |||||
Balance at the beginning of the period | 1.9 | ||||
Charges (Benefits) | 0.4 | ||||
Cash Settlements | (2) | ||||
Non-cash Settlements and Other Adjustments | 0.1 | ||||
Balance at the end of the period | 0.4 | ||||
Number of employees impacted (employee) | employee | 360 | ||||
NE Lease Restructuring Plan | |||||
Summary of various restructuring plans | |||||
Balance at the beginning of the period | 1.2 | ||||
Charges (Benefits) | 0 | ||||
Cash Settlements | (0.3) | ||||
Non-cash Settlements and Other Adjustments | 0 | ||||
Balance at the end of the period | 0.9 | ||||
Contractual obligations under the operating lease, net of sublease income, fair value | 0.9 | ||||
Other Plans - prior to fiscal 2016 | |||||
Summary of various restructuring plans | |||||
Balance at the beginning of the period | 1.5 | ||||
Charges (Benefits) | (0.1) | ||||
Cash Settlements | (0.6) | ||||
Non-cash Settlements and Other Adjustments | 0 | ||||
Balance at the end of the period | 0.8 | ||||
Other Plans - prior to fiscal 2017 | |||||
Summary of various restructuring plans | |||||
Balance at the end of the period | 0.8 | ||||
Exit of workspace in Vancouver, Canada | Focused NSE Restructuring Plan | |||||
Summary of various restructuring plans | |||||
Balance at the end of the period | $ 0.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) | $ 5.7 | $ 2 | |
Unrecognized tax benefits | 51.9 | $ 48.6 | |
Interest and penalties accrued | 1.7 | ||
Unrecognized tax benefits that may be recognized during the next twelve months | $ 1.3 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Tax benefit related to income tax intraperiod tax allocation | $ 2.8 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Sep. 29, 2018 | Feb. 28, 2018 | Dec. 30, 2017 |
Class of Stock [Line Items] | |||
Authorized amount under stock repurchase program | $ 200,000,000 | $ 150,000,000 | |
Common stock | |||
Class of Stock [Line Items] | |||
Remaining authorization for future share repurchases | $ 62,600,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation by Function (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 8.1 | $ 7.5 |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 0.8 | 0.9 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 1.2 | 1.1 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 6.1 | $ 5.5 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Stock-Based Compensation | ||
Stock-based compensation capitalized to inventory | $ 0.9 | $ 0.7 |
Full Value Awards - Total | ||
Stock-Based Compensation | ||
Unrecognized stock-based compensation | $ 74.9 | |
Estimated amortization period for unrecognized compensation | 2 years 2 months 2 days | |
Full Value Awards - Total | Minimum | ||
Stock-Based Compensation | ||
Vesting period | 1 year | |
Full Value Awards - Total | Maximum | ||
Stock-Based Compensation | ||
Vesting period | 4 years | |
RSUs | ||
Stock-Based Compensation | ||
Granted (in shares) | 3.4 | 2.9 |
Restricted Stock Units with Time Based Conditions | ||
Stock-Based Compensation | ||
Vesting period | 3 years | |
Percentage of first tranche vested | 33.00% | |
Initial vesting period | 1 year | |
Subsequent vesting period | 2 years | |
Restricted Stock Units with Market and Performance Conditions | ||
Stock-Based Compensation | ||
Vesting period | 3 years | |
Granted (in shares) | 0.5 | 0.5 |
Aggregate grant-date fair value | $ 6.2 | $ 6.1 |
Restricted Stock Units with Performance Conditions Over Target | ||
Stock-Based Compensation | ||
Granted (in shares) | 0.1 | 0.2 |
Employee Pension and Other Be_3
Employee Pension and Other Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Employee Defined Benefit Plans | ||
Employer contributions | $ 1.5 | |
Components of the net periodic cost for the pension and benefits plans | ||
Cash outlays expected during current fiscal year | 7.8 | |
Pension Benefit Plans | ||
Components of the net periodic cost for the pension and benefits plans | ||
Service cost | 0 | $ 0 |
Interest cost | 0.6 | 0.7 |
Expected return on plan assets | (0.4) | (0.4) |
Amortization of net actuarial losses | 0.6 | 0.4 |
Net periodic benefit cost | 0.8 | $ 0.7 |
UNITED KINGDOM | ||
Employee Defined Benefit Plans | ||
Employer contributions | $ 0.7 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) £ in Millions | 3 Months Ended | |||||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018GBP (£) | Jun. 30, 2018USD ($) | Jul. 02, 2016GBP (£) | Jun. 30, 2016GBP (£) | |
Loss Contingencies [Line Items] | ||||||
Guarantee liabilities | $ 0 | $ 0 | ||||
Standby letters of credit | $ 11,000,000 | |||||
Product Warranties | ||||||
Warranty Term for most products | 3 years | |||||
Changes in warranty reserve | ||||||
Balance as of beginning of period | $ 8,200,000 | $ 5,800,000 | ||||
Provision for warranty | 400,000 | 500,000 | ||||
Utilization of reserve | (1,200,000) | (900,000) | ||||
Adjustments related to pre-existing warranties (including changes in estimates) | 1,600,000 | 700,000 | ||||
Acquisition related | 0 | 300,000 | ||||
Balance as of end of period | 9,000,000 | $ 6,400,000 | ||||
Performance bond | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee liabilities | 1,600,000 | |||||
Judicial ruling | Case related to amendment of pension for foreign subsidiary | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | $ 7,700,000 | £ 5.9 | ||||
Minimum | Judicial ruling | Case related to amendment of pension for foreign subsidiary | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated liability | £ | £ 5.7 | |||||
Loss contingency accrual | £ | £ 5.7 | |||||
Maximum | Judicial ruling | Case related to amendment of pension for foreign subsidiary | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated liability | £ | £ 8.4 |
Operating Segments and Geogra_3
Operating Segments and Geographic Information - Information on Reportable Segments (Details) $ in Millions | 3 Months Ended | |
Sep. 29, 2018USD ($)segment | Sep. 30, 2017USD ($) | |
Information on reportable segments | ||
Number of broad business categories (in segment) | segment | 2 | |
Total net revenue | $ 268.5 | $ 190.9 |
Gross profit | $ 150.4 | $ 112.7 |
Gross margin (as a percent) | 56.00% | 59.00% |
Operating income | $ (1.2) | $ 6.7 |
Operating margin (as a percent) | (0.40%) | 3.50% |
Other Items | ||
Information on reportable segments | ||
Total net revenue | $ 0 | $ 0 |
Gross profit | (10.2) | (6.3) |
Operating income | (45) | (19.4) |
Network and Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 190.7 | 136.5 |
Gross profit | $ 121.2 | $ 87.6 |
Gross margin (as a percent) | 63.60% | 64.20% |
Operating income | $ 16.4 | $ 3.9 |
Operating margin (as a percent) | 8.60% | 2.90% |
Network and Service Enablement | Network Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 164.5 | $ 111.6 |
Gross profit | $ 102.9 | $ 70.3 |
Gross margin (as a percent) | 62.60% | 63.00% |
Network and Service Enablement | Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 26.2 | $ 24.9 |
Gross profit | $ 18.3 | $ 17.3 |
Gross margin (as a percent) | 69.80% | 69.50% |
Optical Security and Performance Products | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 77.8 | $ 54.4 |
Gross profit | $ 39.4 | $ 31.4 |
Gross margin (as a percent) | 50.60% | 57.70% |
Operating income | $ 27.4 | $ 22.2 |
Operating margin (as a percent) | 35.20% | 40.80% |
Product | ||
Information on reportable segments | ||
Total net revenue | $ 241.1 | $ 165.1 |
Product | Other Items | ||
Information on reportable segments | ||
Total net revenue | 0 | 0 |
Product | Network and Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 163.5 | 111.4 |
Product | Network and Service Enablement | Network Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 149.9 | 102.8 |
Product | Network and Service Enablement | Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 13.6 | 8.6 |
Product | Optical Security and Performance Products | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 77.6 | 53.7 |
Service | ||
Information on reportable segments | ||
Total net revenue | 27.4 | 25.8 |
Service | Other Items | ||
Information on reportable segments | ||
Total net revenue | 0 | 0 |
Service | Network and Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 27.2 | 25.1 |
Service | Network and Service Enablement | Network Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 14.6 | 8.8 |
Service | Network and Service Enablement | Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 12.6 | 16.3 |
Service | Optical Security and Performance Products | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 0.2 | $ 0.7 |
Operating Segments and Geogra_4
Operating Segments and Geographic Information - Segment Reconciling Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Information on reportable segments | ||
Gross profit | $ 150.4 | $ 112.7 |
Income from operations | (1.2) | 6.7 |
Stock-based compensation | (8.1) | (7.5) |
Amortization of intangibles | (9.8) | (3.1) |
Restructuring and related charges | (14.8) | (1.5) |
Other Items | ||
Information on reportable segments | ||
Gross profit | (10.2) | (6.3) |
Income from operations | (45) | (19.4) |
Gross Profit | ||
Information on reportable segments | ||
Gross profit | 150.4 | 112.7 |
Gross Profit | Segment Measures | ||
Information on reportable segments | ||
Gross profit | 160.6 | 119 |
Gross Profit | Other Items | ||
Information on reportable segments | ||
Stock-based compensation | (0.8) | (0.9) |
Amortization of intangibles | (9.4) | (4.1) |
Other charges unrelated to core operating performance | 0 | (1.3) |
Operating Income (Loss) | ||
Information on reportable segments | ||
Income from operations | (1.2) | 6.7 |
Operating Income (Loss) | Segment Measures | ||
Information on reportable segments | ||
Income from operations | 43.8 | 26.1 |
Operating Income (Loss) | Other Items | ||
Information on reportable segments | ||
Stock-based compensation | (8.1) | (7.5) |
Amortization of intangibles | (19.2) | (7.2) |
Other charges unrelated to core operating performance | (2.9) | (3.2) |
Restructuring and related charges | $ (14.8) | $ (1.5) |
Operating Segments and Geogra_5
Operating Segments and Geographic Information - Revenue by geographic area (Details) $ in Millions | 3 Months Ended | |
Sep. 29, 2018USD ($)region | Sep. 30, 2017USD ($) | |
Information on reportable segments | ||
Number of geographic regions | region | 3 | |
Total net revenue | $ 268.5 | $ 190.9 |
Product revenue | ||
Information on reportable segments | ||
Total net revenue | 241.1 | 165.1 |
Service revenue | ||
Information on reportable segments | ||
Total net revenue | 27.4 | 25.8 |
United States | ||
Information on reportable segments | ||
Total net revenue | 72.8 | 77.6 |
United States | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 60.1 | 64.6 |
United States | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 12.7 | 13 |
Other Americas | ||
Information on reportable segments | ||
Total net revenue | 21 | 17 |
Other Americas | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 17.9 | 12 |
Other Americas | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 3.1 | 5 |
Total Americas | ||
Information on reportable segments | ||
Total net revenue | 93.8 | 94.6 |
Total Americas | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 78 | 76.6 |
Total Americas | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 15.8 | 18 |
Greater China | ||
Information on reportable segments | ||
Total net revenue | 58.9 | 23 |
Greater China | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 58.7 | 22.4 |
Greater China | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 0.2 | 0.6 |
Other Asia | ||
Information on reportable segments | ||
Total net revenue | 39.5 | 14.2 |
Other Asia | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 36 | 13.1 |
Other Asia | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 3.5 | 1.1 |
Total Asia-Pacific | ||
Information on reportable segments | ||
Total net revenue | 98.4 | 37.2 |
Total Asia-Pacific | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 94.7 | 35.5 |
Total Asia-Pacific | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 3.7 | 1.7 |
Switzerland | ||
Information on reportable segments | ||
Total net revenue | 25.7 | 28.3 |
Switzerland | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 25.7 | 28.3 |
Switzerland | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 0 | 0 |
Other EMEA | ||
Information on reportable segments | ||
Total net revenue | 50.6 | 30.8 |
Other EMEA | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 42.7 | 24.7 |
Other EMEA | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 7.9 | 6.1 |
Total EMEA | ||
Information on reportable segments | ||
Total net revenue | 76.3 | 59.1 |
Total EMEA | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 68.4 | 53 |
Total EMEA | Service revenue | ||
Information on reportable segments | ||
Total net revenue | $ 7.9 | $ 6.1 |
Subsequent Events Narrative (De
Subsequent Events Narrative (Details) - USD ($) $ in Millions | Oct. 30, 2018 | Oct. 10, 2018 | Aug. 15, 2018 | Sep. 29, 2018 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||||
Repayments of convertible debt | $ 134.3 | $ 162 | |||
Cash purchase price | $ 0 | $ 55.3 | |||
Convertible Notes | 2033 Notes | |||||
Subsequent Event [Line Items] | |||||
Repayments of convertible debt | $ 134.3 | ||||
Subsequent Event | Convertible Notes | 2033 Notes | |||||
Subsequent Event [Line Items] | |||||
Aggregate principal amount of debt redeemed | $ 142.7 | ||||
Debt redemption, percentage of principal amount redeemed | 100.00% | ||||
Subsequent Event | Convertible Notes | 2033 Notes Redeemed By Holders | |||||
Subsequent Event [Line Items] | |||||
Aggregate principal amount of debt redeemed | $ 112 | ||||
Repayments of convertible debt | $ 111.8 | ||||
Shares issued in debt conversion (in shares) | 231,795 | ||||
Subsequent Event | Convertible Notes | 2033 Notes Redeemed By The Company | |||||
Subsequent Event [Line Items] | |||||
Aggregate principal amount of debt redeemed | $ 30.7 | ||||
Repayments of convertible debt | $ 30.8 | ||||
RPC Photonics, Inc. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash purchase price | $ 30 | ||||
Performance based earn-out payments (up to) | $ 53 |