Cover page
Cover page - shares | 3 Months Ended | |
Sep. 28, 2019 | Oct. 26, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-22874 | |
Entity Registrant Name | Viavi Solutions Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2579683 | |
Entity Address, Address Line One | 6001 America Center Drive | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95002 | |
City Area Code | 408 | |
Local Phone Number | 404-3600 | |
Title of 12(b) Security | Common Stock, par value of $0.001 per share | |
Trading Symbol | VIAV | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 229,790,489 | |
Entity Central Index Key | 0000912093 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-27 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Revenues: | ||
Total net revenue | $ 299.8 | $ 268.5 |
Cost of revenues: | ||
Amortization of acquired technologies | 8.4 | 9.4 |
Total cost of revenue | 125.4 | 118.1 |
Gross profit | 174.4 | 150.4 |
Operating expenses: | ||
Research and development | 51.5 | 42.6 |
Selling, general and administrative | 93.2 | 84.4 |
Amortization of other intangibles | 8.7 | 9.8 |
Restructuring and related charges | 0.3 | 14.8 |
Total operating expenses | 153.7 | 151.6 |
Income (loss) from operations | 20.7 | (1.2) |
Interest and other income, net | 2.7 | 1.7 |
Interest expense | (8.3) | (10.1) |
Income (loss) before taxes | 15.1 | (9.6) |
Provision for income taxes | 8.3 | 5.7 |
Net income (loss) | $ 6.8 | $ (15.3) |
Net income (loss) per share: | ||
Basic (in shares) | $ 0.03 | $ (0.07) |
Diluted (in shares) | $ 0.03 | $ (0.07) |
Shares used in per-share calculations: | ||
Basic (in dollars per share) | 229.4 | 227.2 |
Diluted (in dollars per share) | 236.4 | 227.2 |
Product revenue | ||
Revenues: | ||
Total net revenue | $ 264.8 | $ 241.1 |
Cost of revenues: | ||
Cost of revenue | 104.3 | 97.9 |
Service revenue | ||
Revenues: | ||
Total net revenue | 35 | 27.4 |
Cost of revenues: | ||
Cost of revenue | $ 12.7 | $ 10.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 6.8 | $ (15.3) |
Other comprehensive loss: | ||
Net change in cumulative translation adjustment, net of tax | (27.4) | (13.1) |
Net change in available-for-sale investments, net of tax: | ||
Unrealized holding gain arising during period | 0 | 0.1 |
Plus: reclassification adjustments included in net loss | 0 | 0.2 |
Net change in defined benefit obligation, net of tax: | ||
Amortization of actuarial losses | 0.7 | 0.6 |
Net change in accumulated other comprehensive income (loss) | (26.7) | (12.2) |
Comprehensive loss | $ (19.9) | $ (27.5) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 525.3 | $ 521.5 |
Short-term investments | 1.5 | 1.5 |
Restricted cash | 3.5 | 3.5 |
Accounts receivable, net | 232.7 | 237.7 |
Inventories, net | 99.4 | 102.7 |
Prepayments and other current assets | 51.8 | 49.9 |
Total current assets | 914.2 | 916.8 |
Property, plant and equipment, net | 170.5 | 179.9 |
Goodwill, net | 376.7 | 381.1 |
Intangibles, net | 191.8 | 211.6 |
Deferred income taxes | 104.4 | 108.4 |
Other non-current assets | 50.1 | 17.3 |
Total assets | 1,807.7 | 1,815.1 |
Current liabilities: | ||
Accounts payable | 60.9 | 63.4 |
Accrued payroll and related expenses | 66 | 58.7 |
Deferred revenue | 51.2 | 55.3 |
Accrued expenses | 31.3 | 34.2 |
Other current liabilities | 73.1 | 72.4 |
Total current liabilities | 282.5 | 284 |
Long-term debt | 584.3 | 578.8 |
Other non-current liabilities | 232.8 | 226.5 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 1 billion shares authorized; 230 million shares at September 28, 2019 and 229 million shares at June 29, 2019, issued and outstanding | 0.2 | 0.2 |
Additional paid-in capital | 70,245.4 | 70,244.7 |
Accumulated deficit | (69,376.2) | (69,384.5) |
Accumulated other comprehensive loss | (161.3) | (134.6) |
Total stockholders’ equity | 708.1 | 725.8 |
Total liabilities and stockholders’ equity | $ 1,807.7 | $ 1,815.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 28, 2019 | Jun. 29, 2019 |
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) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
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) | 230,000,000 | 229,000,000 |
Common Stock, shares outstanding (in shares) | 230,000,000 | 229,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 6.8 | $ (15.3) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation expense | 9.8 | 9.9 |
Amortization of acquired technologies and other intangibles | 17.1 | 19.2 |
Stock-based compensation | 10.3 | 8.1 |
Amortization of debt issuance costs and accretion of debt discount | 5.5 | 6.9 |
Net change in fair value of contingent liabilities | 1.7 | 0 |
Other (linked) | 0.6 | 0.1 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 0.5 | (6.7) |
Inventories | (3.4) | 1.4 |
Other current and non-currents assets | (1.7) | (2.9) |
Accounts payable | (1.6) | 3.7 |
Income taxes payable | 2 | 1.3 |
Deferred revenue, current and non-current | (4.1) | 1.1 |
Deferred taxes, net | (1.3) | (1.9) |
Accrued payroll and related expenses | 3.8 | 2.6 |
Accrued expenses and other current and non-current liabilities | (14.7) | 0.1 |
Net cash provided by operating activities | 31.3 | 27.6 |
INVESTING ACTIVITIES: | ||
Maturities of available-for-sale investments | 0 | 36.5 |
Sales of available-for-sale investments | 0 | 81 |
Capital expenditures | (7.1) | (12.1) |
Proceeds from the sale of assets | 1.2 | 1.6 |
Net cash (used in) provided by investing activities | (5.9) | 107 |
FINANCING ACTIVITIES: | ||
Payment of debt issuance costs | 0 | (0.5) |
Repurchase and retirement of common stock | (1.5) | 0 |
Withholding tax payment on vesting of restricted stock awards | (7.6) | (5.5) |
Repurchase and redemption of convertible debt | 0 | (134.3) |
Payment of financing obligations | (1) | (0.2) |
Proceeds from exercise of employee stock options and employee stock purchase plan | 2.3 | 2.1 |
Net cash used in financing activities | (7.8) | (138.4) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (14.4) | (7.2) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3.2 | (11) |
Cash, cash equivalents and restricted cash at the beginning of the period | 530.4 | 624.3 |
Cash, cash equivalents and restricted cash at the end of the period | $ 533.6 | $ 613.3 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Balance at the beginning of the period (in shares) at Jun. 30, 2018 | 226,700 | ||||
Balance at the beginning of the period at Jun. 30, 2018 | $ 734.9 | $ 0.2 | $ 70,216.2 | $ (69,378.6) | $ (102.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (15.3) | (15.3) | |||
Other comprehensive loss | (12.2) | (12.2) | |||
Shares issued under employee stock plans, net of tax (in shares) | 1,500 | ||||
Shares issued under employee stock plans, net of tax | (5.8) | (5.8) | |||
Stock-based compensation | 8.2 | 8.2 | |||
Other | (0.2) | (0.2) | |||
Balance at the end of the period (in shares) at Sep. 29, 2018 | 228,200 | ||||
Balance at the end of the period at Sep. 29, 2018 | 709.6 | $ 0.2 | 70,218.6 | (69,394.1) | (115.1) |
Balance at the beginning of the period (in shares) at Jun. 29, 2019 | 228,800 | ||||
Balance at the beginning of the period at Jun. 29, 2019 | 725.8 | $ 0.2 | 70,244.7 | (69,384.5) | (134.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 6.8 | 6.8 | |||
Other comprehensive loss | (26.7) | (26.7) | |||
Shares issued under employee stock plans, net of tax (in shares) | 1,700 | ||||
Shares issued under employee stock plans, net of tax | (9.7) | (9.7) | |||
Stock-based compensation | $ 10.4 | 10.4 | |||
Repurchase of common stock (in shares) | (104) | (100) | |||
Repurchase of common stock | $ (1.5) | (1.5) | |||
Balance at the end of the period (in shares) at Sep. 28, 2019 | 230,400 | ||||
Balance at the end of the period at Sep. 28, 2019 | $ 708.1 | $ 0.2 | $ 70,245.4 | $ (69,376.2) | $ (161.3) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 28, 2019 | |
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”) for the three months ended September 28, 2019 and September 29, 2018 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 29, 2019 . Other than updates to the Company’s lease accounting policy under Accounting Standards Codification (“ASC”) 842 - Leases , as disclosed in “ Note 2. Recently Issued Accounting Pronouncements ” and “ Note 12. Leases ”, there have been no material changes to the Company’s accounting policies during the three months ended September 28, 2019 , 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 29, 2019 on Form 10-K filed with the SEC on August 27, 2019 . The balance sheet as of June 29, 2019 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 28, 2019 and September 29, 2018 may not be indicative of results for the fiscal year ending June 27, 2020 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 2020 is a 52 -week year ending on June 27, 2020 . The Company’s fiscal 2019 was a 52 -week year ending on June 29, 2019 . 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. 28, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Adopted In 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the financial reporting requirements for leasing arrangements, ASC 842 - Leases . ASC 842 requires lessees to recognize operating leases with a term greater than one year on their balance sheets as Right-of-Use (“ ROU ”) assets and corresponding lease liabilities, measured at the present value of the lease payments. In the first quarter of fiscal 2020 the Company adopted this standard using the modified retrospective approach. The Company elected to apply the optional transition approach of not adjusting comparative period financial statements for the adoption impact. The Company also elected the package of practical expedients to not reassess whether a contract contains a lease, lease classification and accounting for initial direct costs. Adoption of the leasing standard resulted in $35.5 million of ROU assets and $37.0 million of lease liabilities. In addition, the Company recorded an adjustment to accumulative deficit, net of taxes, of $3.0 million from the recognition of previously deferred profit under sale-leaseback arrangements and de-recognition of related real estate assets of $7.1 million and financing obligations of $10.1 million . The adoption of the new standard did not have a material impact on the Company’s Consolidated Statements of Operations and Statements of Cash Flows. For additional information refer to “ Note 12. Leases .” Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued guidance to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. Some of the changes include adding a disclosure requirement for significant gains and losses related to changes in the benefit obligation for the period and removing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. This guidance is effective for the Company in the first quarter of fiscal 2022 and early adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In June 2016, the 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. |
Revenue
Revenue | 3 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3. Revenue The Company accounts for revenue in accordance with ASC 606, which was adopted in fiscal 2019 using the retrospective transition method. The Company’s revenue is derived 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. Balance sheet and other details Unbilled 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, included in accounts receivable, net, on the Consolidated Balance Sheets, are not material to the Consolidated Financial Statements. The prior year’s Consolidated Balance Sheets and Statements of Cash Flows have been updated to conform to the current period’s presentation. Contract asset balances will fluctuate based upon the timing of transfer of services, billings and customers’ acceptance of contractual milestones. Gross receivables include both billed and Unbilled Receivables/Contract Assets. For the three months ended September 28, 2019 and June 29, 2019 the Company had total non-billed receivables (Unbilled Receivables/Contract Assets) of $5.5 million and $11.5 million , respectively. 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 deferred revenue and non-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 ): September 28, 2019 Three Months Ended Deferred revenue: Balance at beginning of period $ 68.5 Revenue deferrals for new contracts (1) 18.9 Revenue recognized during the period (23.0 ) Balance at end of period $ 64.4 Short-term deferred revenue $ 51.2 Long-term deferred revenue $ 13.2 (1) Included in these amounts is 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 are incomplete, as of September 28, 2019 . 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. 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 28, 2019 , was $228.9 million . The Company expects to recognize 92% of remaining performance obligations as revenue within the next 12 months , and the remainder thereafter. Disaggregation of revenue The Company's revenue is presented on a disaggregated basis on the Consolidated Statements of Operations and in “ Note 19. 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 28, 2019 | |
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 28, 2019 September 29, 2018 Numerator: Net income (loss) $ 6.8 $ (15.3 ) Denominator: Weighted-average shares outstanding: Basic 229.4 227.2 Shares issuable assuming conversion of convertible notes (1) 2.8 — Effect of dilutive securities from stock-based benefit plans 4.2 — Diluted 236.4 227.2 Net income (loss) per share: Basic $ 0.03 $ (0.07 ) Diluted $ 0.03 $ (0.07 ) (1) Represents the number of shares that would be issued if the Company’s Senior Convertible Notes had been converted. The par amount of the Company’s convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and the “in-the money” conversion benefit feature above the conversion price is payable in cash, shares of the Company’s common stock or a combination of both, at the Company’s election. The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net loss per share because their effect would have been anti-dilutive ( in millions ): Three Months Ended September 28, 2019 September 29, 2018 (2) (3) (4) (5) Stock options and ESPP — 1.6 Restricted stock units 0.1 7.0 Total potentially dilutive securities 0.1 8.6 (2) As the Company incurred a loss from continuing operations 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. (3) The Company’s 0.625% Senior Convertible Notes due 2033 are not included in the table above. In October 2018, the 2033 Notes were fully converted and redeemed by the Company and any potential EPS dilution effect of the Notes was realized upon the Company settling the “in-the-money” conversion benefit feature of the Notes with shares of common stock. Refer to “ Note 11. Debt ” for more details. (4) 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 quarterly stock price for the period presented did not exceed the conversion price of $13.22 . Refer to “ Note 11. Debt ” for more details. (5) 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 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 $13.94 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 quarterly stock price for the period presented 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. 28, 2019 | |
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 28, 2019 , the changes in accumulated other comprehensive loss, net of tax, by component 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 29, 2019 $ (5.0 ) $ (101.0 ) $ (28.6 ) $ (134.6 ) Other comprehensive income (loss) before reclassification — (27.4 ) — (27.4 ) Amounts reclassified to accumulated other comprehensive loss — — 0.7 0.7 Net current-period other comprehensive income (loss) — (27.4 ) 0.7 (26.7 ) Ending balance as of September 28, 2019 $ (5.0 ) $ (128.4 ) $ (27.9 ) $ (161.3 ) (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 28, 2019 . There was no tax impact for the three months ended September 28, 2019 . Refer to “ Note 17. 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. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 6. Acquisitions 3Z Telecom, Inc. Acquisition On May 31, 2019 (“3Z Close Date”), the Company acquired all of the equity of 3Z Telecom, Inc. (“3Z”) for approximately $23.2 million in cash and contingent consideration (“earn-out”) liability of up to $7.0 million in cash based on the achievement of certain net revenue targets over approximately a two year period, subsequent to the 3Z Close Date. The $23.2 million cash consideration is subject to final cash and net working capital adjustments and includes escrow payments of $4.3 million , which are reserved for potential breaches of representations and warranties. The acquisition of 3Z expands the Company’s Field Instrument offerings. The 3Z acquisition meets the definition of a business and has been accounted for 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. Acquisition related costs incurred were not material. The fair value of consideration transferred for the 3Z acquisition consists of the following (in millions) : Cash consideration paid at closing $ 18.9 Escrow payments 4.3 Fair value of contingent consideration 5.5 Total purchase consideration $ 28.7 The fair value of the earn-out payments at the 3Z Close Date was determined by applying a risk-neutral framework using a Monte Carlo Simulation, which includes inputs not observable in the market, and therefore represents a Level 3 measurement. The fair value of the Company’s earn-out liabilities is further discussed in “ Note 8. Investments, Forward Contracts and Fair Value Measurements .” The preliminary identified tangible and intangible assets acquired, as of the 3Z Close Date, were as follows (in millions) : Tangible assets acquired: $ 4.1 Intangible assets acquired: Developed technology 4.4 Customer relationships 7.9 Customer backlog 0.1 Goodwill 12.2 Total consideration transferred $ 28.7 The preliminary allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the 3Z Close Date, was as follows (in millions) : Cash $ 2.2 Total other assets 3.6 Total liabilities (1.7 ) Net tangible assets acquired $ 4.1 The allocation of the purchase price was based upon a preliminary valuation, and our estimates and assumptions are subject to refinement and final cash and net working capital adjustments within the measurement period (up to one year from the 3Z Close Date). The purchase price allocation may require prospective adjustments to goodwill. 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 values of acquired customer relationships and developed technology were determined based on the excess earnings method and relief from royalty method, respectively, variations of the income approach. The intangible assets are being amortized over their estimated useful lives, which range from five to six years . Customer backlog will be fully amortized within one year . Goodwill arising from this acquisition is primarily attributed to sales of future products and services of 3Z. Goodwill has been assigned to the NE segment and is not deductible for tax purposes. Results of operations of 3Z have been included in the Company’s Consolidated Financial Statements subsequent to the date of acquisition. Proforma or historical post-acquisition results of operations have not been presented because the effect of the acquisition was not material to prior period financial statements. RPC Photonics, Inc. Acquisition On October 30, 2018 (“RPC Close Date”), the Company acquired all of the equity interest of RPC Photonics, Inc. (“RPC”) for approximately $33.4 million in cash and an additional earn-out of up to $53.0 million in cash based on the achievement of certain gross profit targets over approximately a four years period, subsequent to the RPC Close Date. The achievement or distributions of earn-out payments are not limited in any one period. The estimated fair value of the contingent consideration portion of the earn-out is $31.7 million as of September 28, 2019 . The acquisition of RPC expands the Company’s 3D Sensing offerings. The Company accounted for the transaction in accordance with the authoritative guidance on business combination; therefore, the tangible and intangible assets acquired and liabilities assumed are recorded at fair value on the acquisition date. The fair value of consideration transferred for the RPC Close Date, were as follows (in millions) : Cash consideration paid at closing $ 29.9 Escrow payments 3.5 Fair value of contingent consideration 36.2 Total purchase consideration $ 69.6 The fair value of the earn-out payments at the RPC Close Date were determined by applying a risk-neutral framework using a Monte Carlo Simulation, which includes inputs that are not observable in the market, and therefore represents a Level 3 measurement. The fair value of this earn-out is discussed further in “ Note 8. Investments, Forward Contracts and Fair Value Measurements ”. The identified tangible and intangible assets acquired, as of the RPC Close Date, were as follows (in millions) : Tangible assets acquired: $ 5.7 Intangible assets acquired: Developed technology 15.7 Customer relationships 14.0 Customer backlog 0.3 Goodwill 33.9 Total consideration transferred $ 69.6 The allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the RPC Close Date, were as follows (in millions) : Cash $ 1.8 Other current assets 1.8 Property and equipment 2.6 Total liabilities (0.5 ) Net tangible assets acquired $ 5.7 The allocation of the purchase price was based upon a valuation performed. 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 values of acquired customer relationships and developed technology were determined based on the excess earnings method and relief from royalty method, respectively, variations of the income approach. The intangible assets are being amortized over their estimated useful lives that range from six to seven years . Customer backlog will be fully amortized within one year . Goodwill arising from this acquisition is primarily attributed to sales of future products and services of RPC. Goodwill has been assigned to the OSP segment and is not deductible for tax purposes. Results of operations of RPC have been included in the Company’s Consolidated Financial Statements subsequent to the date of acquisition. Proforma or historical post-acquisition results of operations have not been presented because the effect of the acquisition was not material to prior period financial statements. |
Balance Sheet and Other Details
Balance Sheet and Other Details | 3 Months Ended |
Sep. 28, 2019 | |
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 ( in millions ): June 29, 2019 Charged to Costs and Expenses Deductions (1) September 28, 2019 Allowance for doubtful accounts $ 2.0 $ 0.4 $ (0.2 ) $ 2.2 (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 ( in millions ): September 28, 2019 June 29, 2019 Finished goods $ 35.8 $ 36.7 Work in process 22.9 26.5 Raw materials 40.7 39.5 Inventories, net $ 99.4 $ 102.7 Prepayments and other current assets The following table presents the components of prepayments and other current assets ( in millions ): September 28, 2019 June 29, 2019 Prepayments $ 14.0 $ 14.2 Asset held for sale 2.5 2.5 Advances to contract manufacturers 6.1 5.1 Refundable income taxes 8.1 8.9 Transaction tax receivables 11.1 11.8 Other current assets 10.0 7.4 Prepayments and other current assets $ 51.8 $ 49.9 Other current liabilities The following table presents the components of other current liabilities ( in millions ): September 28, 2019 June 29, 2019 Customer prepayments $ 17.7 $ 30.2 Restructuring accrual 7.4 8.6 Income tax payable 11.0 8.5 Warranty accrual 4.8 4.7 Transaction tax payable 2.7 3.8 Operating lease liabilities (Note 12) 11.8 — Foreign exchange forward contracts liability 4.6 4.0 Other 13.1 12.6 Other current liabilities $ 73.1 $ 72.4 Other non-current liabilities The following table presents components of other non-current liabilities ( in millions ): September 28, 2019 June 29, 2019 Pension and post-employment benefits $ 98.9 $ 103.2 Financing obligation 16.3 25.5 Deferred tax liability 12.9 14.6 Long-term deferred revenue 13.2 13.2 Fair value of contingent consideration (1) 38.4 37.7 Operating lease liabilities (Note 12) 24.2 — Uncertain tax position 12.9 13.6 Other 16.0 18.7 Other non-current liabilities $ 232.8 $ 226.5 (1) See “ Note 6. Acquisitions ” of the Notes to our Consolidated Financial Statements for more detail. |
Investments, Forward Contracts
Investments, Forward Contracts and Fair Value Measurements | 3 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Investments, Forward Contracts and Fair Value Measurements | Note 8. Investments, Forward Contracts and Fair Value Measurements Available-For-Sale Investments The following table presents the Company’s available-for-sale securities as of September 28, 2019 ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: Asset-backed securities $ 0.9 $ — $ (0.3 ) $ 0.6 Total available-for-sale debt securities $ 0.9 $ — $ (0.3 ) $ 0.6 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 28, 2019 , the total estimated fair value of $0.6 million was classified as other non-current assets. In addition to the amounts presented above, the Company’s short-term investments classified as trading securities related to the deferred compensation plan as of September 28, 2019 , were $1.5 million , of which $0.4 million was invested in debt securities, $0.3 million was invested in money market instruments and funds and $0.8 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 28, 2019 and September 29, 2018 , the Company recorded no other-than-temporary impairment charges in each respective period. The following table presents contractual maturities of the Company’s debt securities classified as available-for-sale as of September 28, 2019 , ( in millions ): Amortized Cost/ Carrying Cost Estimated Fair Value Amounts maturing in more than 5 years $ 0.9 $ 0.6 Total debt available-for-sale securities $ 0.9 $ 0.6 The following table presents the Company’s available-for-sale securities as of June 29, 2019 , ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Asset-backed securities $ 0.9 $ — $ (0.3 ) $ 0.6 Total available-for-sale securities $ 0.9 $ — $ (0.3 ) $ 0.6 As of June 29, 2019 , of the estimated fair value of $0.6 million was classified as other non-current assets. In addition to the amounts presented above, as of June 29, 2019 , the Company’s short-term investments classified as trading securities, related to the deferred compensation plan, were $1.5 million , of which $0.4 million was invested in debt securities, $0.3 million was invested in money market instruments and funds and $0.8 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 inputs, that are unobservable and significant to the overall fair value measurement. As of September 28, 2019 and June 29, 2019 , the Company did not hold any Level 3 investment securities. As of September 28, 2019 , the fair value of the Company’s contingent liability was determined using Level 3 inputs, as discussed below. Fair Value Measurements The following table presents assets and liabilities measured at fair value as of September 28, 2019 and June 29, 2019 , ( in millions ): September 28, 2019 June 29, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Debt available-for-sale securities Asset-backed securities $ 0.6 $ — $ 0.6 $ — $ 0.6 $ — $ 0.6 $ — Total debt available-for-sale securities 0.6 — 0.6 — 0.6 — 0.6 — Money market funds 336.1 336.1 — — 322.9 322.9 — — Trading securities 1.5 1.5 — — 1.5 1.5 — — Foreign currency forward contract (1) 2.0 — 2.0 — 1.2 — 1.2 — Total assets (2) $ 340.2 $ 337.6 $ 2.6 $ — $ 326.2 $ 324.4 $ 1.8 $ — Liability: Foreign currency forward contract (3) $ 4.6 $ — $ 4.6 $ — $ 4.0 $ — $ 4.0 $ — Contingent consideration (4) 40.1 — — 40.1 38.4 — — 38.4 Total liabilities $ 44.7 $ — $ 4.6 $ 40.1 $ 42.4 $ — $ 4.0 $ 38.4 (1) $2.0 million and $1.2 million in prepayments and other current assets on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. (2) $328.7 million in cash and cash equivalents, $1.5 million in short-term investments, $3.5 million in restricted cash, $2.0 million in prepayments and other current assets, and $4.5 million in other non-current assets on the Company’s Consolidated Balance Sheets as of September 28, 2019 . $315.5 million in cash and cash equivalents, $1.5 million in short-term investments, $3.5 million in restricted cash, $1.2 million in other current assets, and $4.5 million in other non-current assets on the Company’s Consolidated Balance Sheets as of June 29, 2019 . (3) $4.6 million and $4.0 million in other current liabilities on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. (4) $1.7 million and $0.7 million in Other current liabilities on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. $38.4 million and $37.7 million in Other non-current liabilities on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. Refer to “ Note 6. Acquisitions ” of the Notes to Consolidated Financial Statements for more detail. The Company’s Level 3 liabilities as of September 28, 2019 , consist of contingent purchase consideration. The Company has aggregate contingent liabilities related to its acquisitions. The earn-out liabilities represent future payments by the Company of up to $63.0 million over four years , that are contingent on the achievement of certain revenue and gross profit targets. As of September 28, 2019 , the aggregate fair value of our contingent consideration was $40.1 million . The fair value of earn-out liabilities were determined using a Monte Carlo Simulation that includes significant unobservable inputs such as the risk-free rate, risk-adjusted discount rate, the volatility of the underlying financial metrics and projected financial forecast of the acquired business over the earn-out period. The fair value of contingent consideration liabilities is remeasured at each reporting period at the estimated fair value based on the input on the date of remeasurement, with the change in fair value recognized in Selling, General and Administrative expense of the Consolidated Statements of Operations. The following table provides a reconciliation of changes in fair value of the Company’s Level 3 liabilities for the three months ended September 28, 2019 ( in millions ): Contingent Consideration Balance as of June 29, 2019 $ 38.4 Change in fair value of contingent consideration liabilities 1.7 Balance as of September 28, 2019 $ 40.1 No payments were made in connection with the Company’s contingent earn-out liabilities during the three months ended September 28, 2019 . 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 28, 2019 , 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 $2.0 million and $4.6 million is reflected as prepayments and other current assets and other current liabilities, respectively. As of June 29, 2019 , the fair value of these contracts of $1.2 million and $4.0 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 28, 2019 and June 29, 2019 , the notional amounts of the forward contracts the Company held to purchase foreign currencies were $116.0 million and $117.8 million , respectively, and the notional amounts of forward contracts the Company held to sell foreign currencies were $33.7 million and $31.3 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 $2.6 million and $1.3 million for the three months ended September 28, 2019 and September 29, 2018 , respectively. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 9. Goodwill The following table presents changes in goodwill allocated to the Company’s reportable segments (in millions) : Network Enablement Service Enablement Optical Security and Performance Products Total Balance as of June 29, 2019 $ 338.9 $ — $ 42.2 $ 381.1 Currency translation adjustments (4.4 ) — — (4.4 ) Balance as of September 28, 2019 $ 334.5 $ — $ 42.2 $ 376.7 The Company tests goodwill for impairment at the reporting unit level 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 2019 , 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 28, 2019 . |
Acquired Developed Technology a
Acquired Developed Technology and Other Intangibles | 3 Months Ended |
Sep. 28, 2019 | |
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 28, 2019 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 433.9 $ (317.8 ) $ 116.1 Customer relationships 192.0 (132.6 ) 59.4 Other (1) 35.5 (19.2 ) 16.3 Total intangibles $ 661.4 $ (469.6 ) $ 191.8 As of June 29, 2019 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 437.0 $ (311.1 ) $ 125.9 Customer relationships 193.7 (126.3 ) 67.4 Other (1) 36.1 (17.8 ) 18.3 Total intangibles $ 666.8 $ (455.2 ) $ 211.6 (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 28, 2019 September 29, 2018 Cost of revenues $ 8.4 $ 9.4 Operating expenses 8.7 9.8 Total amortization of intangible assets $ 17.1 $ 19.2 Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of September 28, 2019 , and assuming no future impairment of the underlying assets, the estimated future amortization is as follows ( in millions ): Fiscal Years Remainder of 2020 $ 50.0 2021 62.7 2022 36.8 2023 23.0 2024 9.2 Thereafter 10.1 Total amortization $ 191.8 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. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 11. Debt As of September 28, 2019 and June 29, 2019 , the Company’s long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component of the Senior Convertible Notes, net of unamortized debt discounts and issuance costs. The following table presents the carrying amounts of the liability and equity components of our debt ( in millions ): September 28, 2019 June 29, 2019 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 (94.7 ) (99.8 ) Unamortized debt issuance cost (6.0 ) (6.4 ) Carrying amount of liability component $ 584.3 $ 578.8 Carrying amount of equity component (1) $ 136.8 $ 136.8 (1) Included in additional paid-in-capital on the Consolidated Balance Sheets. The Company was in compliance with all debt covenants as of September 28, 2019 and June 29, 2019 . 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 28, 2019 , the expected remaining term of the 2023 Notes is 3.7 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 28, 2019 and June 29, 2019 , the fair value of the 2023 Notes was approximately $271.8 million and $261.3 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 28, 2019 , the expected remaining term of the 2024 Notes is 4.4 years. Based on quoted market prices as of September 28, 2019 and June 29, 2019 , the fair value of the 2024 Notes was approximately $567.0 million and $540.8 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 15, 2018, certain holders of the 2033 Notes issued in August 2013 exercised the put option and an aggregate principal amount of $134.3 million of the 2033 Notes was 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 outstanding 2033 Notes. The date fixed for the redemption of the Notes was October 10, 2018 (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 of the Company’s common stock. 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 amount of approximately $30.8 million , including accrued and unpaid interest up to, but excluding, the Redemption Date. As of September 28, 2019 and June 29, 2019 , none of the 2033 Notes remain outstanding. Interest Expense The following table presents the interest expense for contractual interest, amortization of debt issuance costs and accretion of debt discount (in millions): Three Months Ended September 28, 2019 September 29, 2018 Interest expense-contractual interest $ 2.1 $ 2.5 Amortization of debt issuance cost 0.3 0.4 Accretion of debt discount 5.1 6.5 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | Note 12. Leases The Company is a lessee in several operating leases, primarily real estate facilities for office space. The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for our operating leases, the Company uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. The lease term is the non-cancelable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that an option will be exercised. Operating ROU assets are recognized at commencement based on the amount of the initial measurement of the lease liability. Operating ROU assets also include any lease payments made prior to lease commencement and exclude lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Operating ROU assets are included in other non-current assets and lease liabilities are included in other current liabilities and other non-current liabilities in the Company’s consolidated balance sheets. Lease and non-lease components for all leases are accounted for separately. The Company does not recognize ROU assets and lease liabilities for leases with a lease term of twelve months or less. The Company's lease arrangements are composed of operating leases with various expiration dates through December 31, 2029 . The Company's leases do not contain any material residual value guarantees. For the three months ended September 28, 2019 , the total operating lease cost was $3.3 million . Total variable lease costs were immaterial during the three months ended September 28, 2019 . The total operating costs were included in cost of revenues, research and development, selling, general and administrative in the Company’s Consolidated Statements of Operations. As of September 28, 2019 , the weighted-average remaining lease term was 4.4 years, and the weighted-average discount rate was 4.8% . For the three months ended September 28, 2019 , cash paid for amounts included in the measurement of operating lease liabilities was $3.4 million , and operating ROU assets obtained in exchange of new operating lease liabilities was $1.9 million . The balance sheet information related to our operating leases is as follows ( in millions ): September 28, 2019 Other non-current assets $ 34.6 Total operating ROU assets $ 34.6 Other current liabilities $ 11.8 Other non-current liabilities 24.2 Total operating lease liabilities $ 36.0 Future minimum operating lease payments as of September 28, 2019 are as follows ( in millions ): Operating Leases Remainder of 2020 $ 9.1 2021 11.8 2022 7.9 2023 3.7 2024 2.3 Thereafter 5.1 Total lease payments $ 39.9 Less: Interest (3.9 ) Present value of lease liabilities $ 36.0 Prior to the adoption of the new lease standard, future minimum undiscounted operating lease payments as of June 29, 2019 , excluding non-lease components, we as follows ( in millions ): Operating Leases Fiscal 2020 $ 11.7 Fiscal 2021 10.8 Fiscal 2022 7.4 Fiscal 2023 3.9 Fiscal 2024 2.5 Thereafter 5.3 Less: sublease income (0.1 ) Total lease payments $ 41.5 |
Restructuring and Related Charg
Restructuring and Related Charges | 3 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | Note 13. Restructuring and Related Charges The Company has initiated restructuring events primarily intended to reduce its costs, consolidate its operations, integrate various acquisitions, streamline product manufacturing and align its business to 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 28, 2019 and June 29, 2019 , the Company’s total restructuring accrual was $7.5 million and $8.8 million , respectively. During the three months ended September 28, 2019 and September 29, 2018 , the Company recorded restructuring and related charges of $0.3 million and $14.8 million , respectively. Summary of Restructuring Plans The following table presents the adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three months ended September 28, 2019 (in millions) : Balance June 29, 2019 Three Months Ended September 28, 2019 Charges Cash Settlements Non-cash Settlements and Other Adjustments (2) Balance September 28, 2019 Fiscal 2019 Plan NSE, including AW (1) $ 8.7 $ 0.3 $ (1.0 ) $ (0.5 ) $ 7.5 Plans Prior to Fiscal 2017 Other Plans (1) 0.1 — — (0.1 ) — Total $ 8.8 $ 0.3 $ (1.0 ) $ (0.6 ) $ 7.5 (1) Plan type includes workforce reduction cost. (2) Other adjustments including $0.2 million lease liability reclassification to Operating lease liability upon ASC 842 adoption. The long-term portion of our total restructuring liability for the September 28, 2019 and June 29, 2019 periods is $0.1 million and $0.2 million , respectively. The remaining portion has been included as a component of Other current liabilities on the Consolidated Balance Sheets. Upon adoption of the new lease accounting standard in the first quarter of fiscal 2020, the remaining lease-related liabilities of $0.2 million associated with the NSE, Including AW Restructuring Plan and Other Plans were recognized as a reduction to the operating lease ROU assets. Fiscal 2019 Plans NSE, including AW Restructuring Plan During the first quarter of fiscal 2019, Management approved restructuring and 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. During the third quarter of fiscal 2019, the Company has updated the plan to include additional headcount primarily to transfer a portion of the manufacturing operations related to the recently acquired AW business to a contract manufacturer. A restructuring charge of $0.3 million was recorded in the three months ended September 28, 2019 for adjustments to severance and employee benefits. Payments related to the severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2020. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes The Company recorded an income tax expense of $8.3 million and $5.7 million for the three months ended September 28, 2019 and September 29, 2018 , respectively. The income tax expense for the three months ended September 28, 2019 and September 29, 2018 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. 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. As of September 28, 2019 , and June 29, 2019 , the Company’s unrecognized tax benefits totaled $50.4 million and $50.9 million , respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $3.4 million accrued for the payment of interest and penalties at September 28, 2019 . The timing and resolution of income tax examinations is uncertain, and the amounts ultimately paid, if any, upon resolution of issues raised by the taxing authorities may differ from the amounts accrued for each year. Although we do not expect that our balance of gross unrecognized tax benefits will change materially in the next 12 months, given the uncertainty in the development of ongoing income tax examinations, we are unable to estimate the full range of possible adjustments to this balance. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 15. Stockholders' Equity Repurchase of Common Stock In September 2019, the Board of Directors authorized a stock repurchase program up to $200 million of the Company’s common stock through open market or private transactions before September 30, 2021 . The new stock repurchase replaces the previous $200 million stock repurchase program that was set to expire on September 30, 2019 . Under the new repurchase program, 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 28, 2019 , the Company repurchased 104 thousand shares of its common stock for $1.5 million . As of September 28, 2019 , the Company had remaining authorization of $198.5 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. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 16. 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 28, 2019 and September 29, 2018 , as follows ( in millions ): Three Months Ended September 28, 2019 September 29, 2018 Cost of revenues $ 1.0 $ 0.8 Research and development 1.7 1.2 Selling, general and administrative 7.6 6.1 Total stock-based compensation expense $ 10.3 $ 8.1 Approximately $1.0 million and $0.9 million of stock-based compensation expense was capitalized to inventory as of September 28, 2019 and September 29, 2018 , 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 28, 2019 and September 29, 2018 , the Company granted 2.9 million and 3.4 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 28, 2019 and September 29, 2018 , 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 28, 2019 and September 29, 2018 , the Company granted additional 0.2 million and 0.1 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 28, 2019 and September 29, 2018 were estimated to be $7.7 million and $6.2 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 28, 2019 , $78.1 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 2.1 years. |
Employee Pension and Other Bene
Employee Pension and Other Benefit Plans | 3 Months Ended |
Sep. 28, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Pension and Other Benefit Plans | Note 17. 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 in fiscal 2010. Benefits are generally based upon years of service and compensation or stated amounts for each year of service. As of September 28, 2019 , the U.K. plan was 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 28, 2019 , the Company contributed $0.6 million to the U.K. plan and $0.9 million to the other plans. 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 28, 2019 September 29, 2018 Service cost $ 0.1 $ — Interest cost 0.4 0.6 Expected return on plan assets (0.4 ) (0.4 ) Amortization of net actuarial losses 0.7 0.6 Net periodic benefit cost $ 0.8 $ 0.8 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 2020 to make current benefit payments and fund future obligations. As of September 28, 2019 , 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 29, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18. 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 is pursuing a deed of rectification claim and continues to pursue a claim against the U.K. law firm responsible for the error. As of September 28, 2019 , the related accrued pension liability was £6.5 million or $8.0 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 28, 2019 and June 29, 2019 . Outstanding Letters of Credit and Performance Bonds As of September 28, 2019 , the Company had standby letters of credit of $7.4 million and performance bonds of $0.9 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. 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 the three months ended September 28, 2019 and September 29, 2018 , ( in millions ): Three Months Ended September 28, 2019 September 29, 2018 Balance as of beginning of period $ 8.7 $ 8.2 Provision for warranty 0.4 0.4 Utilization of reserve (1.0 ) (1.2 ) Adjustments related to pre-existing warranties (including changes in estimates) 0.7 1.6 Balance as of end of period $ 8.8 $ 9.0 |
Operating Segments and Geograph
Operating Segments and Geographic Information | 3 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Information | Note 19. 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. The following tables presents information on the Company’s reportable segments (in millions): Three Months Ended September 28, 2019 Network and Service Enablement Network Enablement Service Enablement Network and Service Enablement Optical Security and Performance Products Other Items Consolidated GAAP Measures Product revenue $ 177.2 $ 7.7 $ 184.9 $ 79.8 $ — $ 264.8 Service revenue 21.7 13.2 34.9 0.2 — 35.0 Net revenue $ 198.9 $ 20.9 $ 219.8 $ 80.0 $ — $ 299.8 Gross profit $ 128.0 $ 12.6 $ 140.6 $ 43.3 $ (9.5 ) $ 174.4 Gross margin 64.4 % 60.3 % 64.0 % 54.1 % 58.2 % Operating income $ 22.3 $ 30.4 $ (32.0 ) $ 20.7 Operating margin 10.1 % 38.0 % 6.9 % Three Months Ended September 29, 2018 Network and Service Enablement 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 28, 2019 September 29, 2018 Corporate reconciling items impacting gross profit: Total segment gross profit $ 183.9 $ 160.6 Stock-based compensation (1.0 ) (0.8 ) Amortization of intangibles (8.4 ) (9.4 ) Other charges unrelated to core operating performance (0.1 ) — GAAP gross profit $ 174.4 $ 150.4 Corporate reconciling items impacting operating income: Total segment operating income $ 52.7 $ 43.8 Stock-based compensation (10.3 ) (8.1 ) Amortization of intangibles (17.1 ) (19.2 ) Other charges unrelated to core operating performance (1) (4.3 ) (2.9 ) Restructuring and related charges (0.3 ) (14.8 ) GAAP operating income $ 20.7 $ (1.2 ) (1) During the three months ended September 28, 2019 and September 29, 2018 , other charges unrelated to core operating performance primarily consisted of certain acquisiti on and integration related changes, transformational initiatives such as, site consolidations, and reorganization, loss on sale of investments 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 28, 2019 September 29, 2018 Product Revenue Service Revenue Total Product Revenue Service Revenue Total Americas: United States $ 71.4 $ 13.6 $ 85.0 $ 60.1 $ 12.7 $ 72.8 Other Americas 16.6 4.1 20.7 17.9 3.1 21.0 Total Americas $ 88.0 $ 17.7 $ 105.7 $ 78.0 $ 15.8 $ 93.8 Asia-Pacific: Greater China $ 70.5 $ 1.4 $ 71.9 $ 58.7 $ 0.2 $ 58.9 Other Asia 31.3 4.0 35.3 36.0 3.5 39.5 Total Asia-Pacific $ 101.8 $ 5.4 $ 107.2 $ 94.7 $ 3.7 $ 98.4 EMEA: Switzerland $ 12.2 $ — $ 12.2 $ 25.7 $ — $ 25.7 Other EMEA 62.8 11.9 74.7 42.7 7.9 50.6 Total EMEA $ 75.0 $ 11.9 $ 86.9 $ 68.4 $ 7.9 $ 76.3 Total net revenue $ 264.8 $ 35.0 $ 299.8 $ 241.1 $ 27.4 $ 268.5 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 28, 2019 | |
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 2020 is a 52 -week year ending on June 27, 2020 . The Company’s fiscal 2019 was a 52 -week year ending on June 29, 2019 . |
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 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the financial reporting requirements for leasing arrangements, ASC 842 - Leases . ASC 842 requires lessees to recognize operating leases with a term greater than one year on their balance sheets as Right-of-Use (“ ROU ”) assets and corresponding lease liabilities, measured at the present value of the lease payments. In the first quarter of fiscal 2020 the Company adopted this standard using the modified retrospective approach. The Company elected to apply the optional transition approach of not adjusting comparative period financial statements for the adoption impact. The Company also elected the package of practical expedients to not reassess whether a contract contains a lease, lease classification and accounting for initial direct costs. Adoption of the leasing standard resulted in $35.5 million of ROU assets and $37.0 million of lease liabilities. In addition, the Company recorded an adjustment to accumulative deficit, net of taxes, of $3.0 million from the recognition of previously deferred profit under sale-leaseback arrangements and de-recognition of related real estate assets of $7.1 million and financing obligations of $10.1 million . The adoption of the new standard did not have a material impact on the Company’s Consolidated Statements of Operations and Statements of Cash Flows. For additional information refer to “ Note 12. Leases .” Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued guidance to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. Some of the changes include adding a disclosure requirement for significant gains and losses related to changes in the benefit obligation for the period and removing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. This guidance is effective for the Company in the first quarter of fiscal 2022 and early adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In June 2016, the 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. |
Revenue Recognition | Remaining Performance Obligations: Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered or are incomplete, as of September 28, 2019 . 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. 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. • 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. Balance sheet and other details Unbilled 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, included in accounts receivable, net, on the Consolidated Balance Sheets, are not material to the Consolidated Financial Statements. The prior year’s Consolidated Balance Sheets and Statements of Cash Flows have been updated to conform to the current period’s presentation. Contract asset balances will fluctuate based upon the timing of transfer of services, billings and customers’ acceptance of contractual milestones. Gross receivables include both billed and Unbilled Receivables/Contract Assets. For the three months ended September 28, 2019 and June 29, 2019 the Company had total non-billed receivables (Unbilled Receivables/Contract Assets) of $5.5 million and $11.5 million , respectively. 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 deferred revenue and non-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 inputs, that are unobservable and significant to the overall fair value measurement. As of September 28, 2019 and June 29, 2019 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
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 ): September 28, 2019 Three Months Ended Deferred revenue: Balance at beginning of period $ 68.5 Revenue deferrals for new contracts (1) 18.9 Revenue recognized during the period (23.0 ) Balance at end of period $ 64.4 Short-term deferred revenue $ 51.2 Long-term deferred revenue $ 13.2 (1) Included in these amounts is the impact from foreign currency exchange rate fluctuations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
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 28, 2019 September 29, 2018 Numerator: Net income (loss) $ 6.8 $ (15.3 ) Denominator: Weighted-average shares outstanding: Basic 229.4 227.2 Shares issuable assuming conversion of convertible notes (1) 2.8 — Effect of dilutive securities from stock-based benefit plans 4.2 — Diluted 236.4 227.2 Net income (loss) per share: Basic $ 0.03 $ (0.07 ) Diluted $ 0.03 $ (0.07 ) (1) Represents the number of shares that would be issued if the Company’s Senior Convertible Notes had been converted. The par amount of the Company’s convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and the “in-the money” conversion benefit feature above the conversion price is payable in cash, shares of the Company’s common stock or a combination of both, at the Company’s election. |
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 per share because their effect would have been anti-dilutive ( in millions ): Three Months Ended September 28, 2019 September 29, 2018 (2) (3) (4) (5) Stock options and ESPP — 1.6 Restricted stock units 0.1 7.0 Total potentially dilutive securities 0.1 8.6 (2) As the Company incurred a loss from continuing operations 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. (3) The Company’s 0.625% Senior Convertible Notes due 2033 are not included in the table above. In October 2018, the 2033 Notes were fully converted and redeemed by the Company and any potential EPS dilution effect of the Notes was realized upon the Company settling the “in-the-money” conversion benefit feature of the Notes with shares of common stock. Refer to “ Note 11. Debt ” for more details. (4) 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 quarterly stock price for the period presented did not exceed the conversion price of $13.22 . Refer to “ Note 11. Debt ” for more details. (5) 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 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 $13.94 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 quarterly stock price for the period presented 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. 28, 2019 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive loss | For the three months ended September 28, 2019 , the changes in accumulated other comprehensive loss, net of tax, by component 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 29, 2019 $ (5.0 ) $ (101.0 ) $ (28.6 ) $ (134.6 ) Other comprehensive income (loss) before reclassification — (27.4 ) — (27.4 ) Amounts reclassified to accumulated other comprehensive loss — — 0.7 0.7 Net current-period other comprehensive income (loss) — (27.4 ) 0.7 (26.7 ) Ending balance as of September 28, 2019 $ (5.0 ) $ (128.4 ) $ (27.9 ) $ (161.3 ) (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 28, 2019 . There was no tax impact for the three months ended September 28, 2019 . Refer to “ Note 17. 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. 28, 2019 | |
Business Combinations [Abstract] | |
Fair value of consideration transferred | The fair value of consideration transferred for the RPC Close Date, were as follows (in millions) : Cash consideration paid at closing $ 29.9 Escrow payments 3.5 Fair value of contingent consideration 36.2 Total purchase consideration $ 69.6 The fair value of consideration transferred for the 3Z acquisition consists of the following (in millions) : Cash consideration paid at closing $ 18.9 Escrow payments 4.3 Fair value of contingent consideration 5.5 Total purchase consideration $ 28.7 |
Preliminary identified intangible assets acquired | The preliminary identified tangible and intangible assets acquired, as of the 3Z Close Date, were as follows (in millions) : Tangible assets acquired: $ 4.1 Intangible assets acquired: Developed technology 4.4 Customer relationships 7.9 Customer backlog 0.1 Goodwill 12.2 Total consideration transferred $ 28.7 The identified tangible and intangible assets acquired, as of the RPC Close Date, were as follows (in millions) : Tangible assets acquired: $ 5.7 Intangible assets acquired: Developed technology 15.7 Customer relationships 14.0 Customer backlog 0.3 Goodwill 33.9 Total consideration transferred $ 69.6 |
Preliminary allocation of purchase price | The preliminary allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the 3Z Close Date, was as follows (in millions) : Cash $ 2.2 Total other assets 3.6 Total liabilities (1.7 ) Net tangible assets acquired $ 4.1 The allocation of the purchase price to tangible assets, based on the estimated fair values of assets acquired and liabilities assumed on the RPC Close Date, were as follows (in millions) : Cash $ 1.8 Other current assets 1.8 Property and equipment 2.6 Total liabilities (0.5 ) Net tangible assets acquired $ 5.7 |
Balance Sheet and Other Detai_2
Balance Sheet and Other Details (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
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 ( in millions ): June 29, 2019 Charged to Costs and Expenses Deductions (1) September 28, 2019 Allowance for doubtful accounts $ 2.0 $ 0.4 $ (0.2 ) $ 2.2 (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 ( in millions ): September 28, 2019 June 29, 2019 Finished goods $ 35.8 $ 36.7 Work in process 22.9 26.5 Raw materials 40.7 39.5 Inventories, net $ 99.4 $ 102.7 |
Schedule of components of prepayments and other current assets | The following table presents the components of prepayments and other current assets ( in millions ): September 28, 2019 June 29, 2019 Prepayments $ 14.0 $ 14.2 Asset held for sale 2.5 2.5 Advances to contract manufacturers 6.1 5.1 Refundable income taxes 8.1 8.9 Transaction tax receivables 11.1 11.8 Other current assets 10.0 7.4 Prepayments and other current assets $ 51.8 $ 49.9 |
Schedule of components of other current liabilities | The following table presents the components of other current liabilities ( in millions ): September 28, 2019 June 29, 2019 Customer prepayments $ 17.7 $ 30.2 Restructuring accrual 7.4 8.6 Income tax payable 11.0 8.5 Warranty accrual 4.8 4.7 Transaction tax payable 2.7 3.8 Operating lease liabilities (Note 12) 11.8 — Foreign exchange forward contracts liability 4.6 4.0 Other 13.1 12.6 Other current liabilities $ 73.1 $ 72.4 |
Schedule of components of other non-current liabilities | The following table presents components of other non-current liabilities ( in millions ): September 28, 2019 June 29, 2019 Pension and post-employment benefits $ 98.9 $ 103.2 Financing obligation 16.3 25.5 Deferred tax liability 12.9 14.6 Long-term deferred revenue 13.2 13.2 Fair value of contingent consideration (1) 38.4 37.7 Operating lease liabilities (Note 12) 24.2 — Uncertain tax position 12.9 13.6 Other 16.0 18.7 Other non-current liabilities $ 232.8 $ 226.5 (1) See “ Note 6. Acquisitions ” of the Notes to our Consolidated Financial Statements for more detail. |
Investments, Forward Contract_2
Investments, Forward Contracts and Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of available-for-sale securities | The following table presents the Company’s available-for-sale securities as of September 28, 2019 ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: Asset-backed securities $ 0.9 $ — $ (0.3 ) $ 0.6 Total available-for-sale debt securities $ 0.9 $ — $ (0.3 ) $ 0.6 The following table presents the Company’s available-for-sale securities as of June 29, 2019 , ( in millions ): Amortized Cost/ Carrying Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale securities: Asset-backed securities $ 0.9 $ — $ (0.3 ) $ 0.6 Total available-for-sale securities $ 0.9 $ — $ (0.3 ) $ 0.6 |
Schedule of contractual maturities of available-for-sale securities | The following table presents contractual maturities of the Company’s debt securities classified as available-for-sale as of September 28, 2019 , ( in millions ): Amortized Cost/ Carrying Cost Estimated Fair Value Amounts maturing in more than 5 years $ 0.9 $ 0.6 Total debt available-for-sale securities $ 0.9 $ 0.6 |
Schedule of assets measured at fair value | The following table presents assets and liabilities measured at fair value as of September 28, 2019 and June 29, 2019 , ( in millions ): September 28, 2019 June 29, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Debt available-for-sale securities Asset-backed securities $ 0.6 $ — $ 0.6 $ — $ 0.6 $ — $ 0.6 $ — Total debt available-for-sale securities 0.6 — 0.6 — 0.6 — 0.6 — Money market funds 336.1 336.1 — — 322.9 322.9 — — Trading securities 1.5 1.5 — — 1.5 1.5 — — Foreign currency forward contract (1) 2.0 — 2.0 — 1.2 — 1.2 — Total assets (2) $ 340.2 $ 337.6 $ 2.6 $ — $ 326.2 $ 324.4 $ 1.8 $ — Liability: Foreign currency forward contract (3) $ 4.6 $ — $ 4.6 $ — $ 4.0 $ — $ 4.0 $ — Contingent consideration (4) 40.1 — — 40.1 38.4 — — 38.4 Total liabilities $ 44.7 $ — $ 4.6 $ 40.1 $ 42.4 $ — $ 4.0 $ 38.4 (1) $2.0 million and $1.2 million in prepayments and other current assets on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. (2) $328.7 million in cash and cash equivalents, $1.5 million in short-term investments, $3.5 million in restricted cash, $2.0 million in prepayments and other current assets, and $4.5 million in other non-current assets on the Company’s Consolidated Balance Sheets as of September 28, 2019 . $315.5 million in cash and cash equivalents, $1.5 million in short-term investments, $3.5 million in restricted cash, $1.2 million in other current assets, and $4.5 million in other non-current assets on the Company’s Consolidated Balance Sheets as of June 29, 2019 . (3) $4.6 million and $4.0 million in other current liabilities on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. (4) $1.7 million and $0.7 million in Other current liabilities on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. $38.4 million and $37.7 million in Other non-current liabilities on the Company’s Consolidated Balance Sheets as of September 28, 2019 and June 29, 2019 , respectively. Refer to “ Note 6. Acquisitions ” of the Notes to Consolidated Financial Statements for more detail. |
Schedule of reconciliation of changes in fair value of Level 3 liabilities | The following table provides a reconciliation of changes in fair value of the Company’s Level 3 liabilities for the three months ended September 28, 2019 ( in millions ): Contingent Consideration Balance as of June 29, 2019 $ 38.4 Change in fair value of contingent consideration liabilities 1.7 Balance as of September 28, 2019 $ 40.1 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents changes in goodwill allocated to the Company’s reportable segments (in millions) : Network Enablement Service Enablement Optical Security and Performance Products Total Balance as of June 29, 2019 $ 338.9 $ — $ 42.2 $ 381.1 Currency translation adjustments (4.4 ) — — (4.4 ) Balance as of September 28, 2019 $ 334.5 $ — $ 42.2 $ 376.7 |
Acquired Developed Technology_2
Acquired Developed Technology and Other Intangibles (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
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 28, 2019 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 433.9 $ (317.8 ) $ 116.1 Customer relationships 192.0 (132.6 ) 59.4 Other (1) 35.5 (19.2 ) 16.3 Total intangibles $ 661.4 $ (469.6 ) $ 191.8 As of June 29, 2019 Gross Carrying Amount Accumulated Amortization Net Acquired developed technology $ 437.0 $ (311.1 ) $ 125.9 Customer relationships 193.7 (126.3 ) 67.4 Other (1) 36.1 (17.8 ) 18.3 Total intangibles $ 666.8 $ (455.2 ) $ 211.6 (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 28, 2019 September 29, 2018 Cost of revenues $ 8.4 $ 9.4 Operating expenses 8.7 9.8 Total amortization of intangible assets $ 17.1 $ 19.2 |
Schedule of estimated future amortization | The following table presents the amortization recorded relating to acquired developed technology, customer relationships and other intangibles ( in millions ): Three Months Ended September 28, 2019 September 29, 2018 Cost of revenues $ 8.4 $ 9.4 Operating expenses 8.7 9.8 Total amortization of intangible assets $ 17.1 $ 19.2 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
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 of our debt ( in millions ): September 28, 2019 June 29, 2019 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 (94.7 ) (99.8 ) Unamortized debt issuance cost (6.0 ) (6.4 ) Carrying amount of liability component $ 584.3 $ 578.8 Carrying amount of equity component (1) $ 136.8 $ 136.8 (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 costs and accretion of debt discount (in millions): Three Months Ended September 28, 2019 September 29, 2018 Interest expense-contractual interest $ 2.1 $ 2.5 Amortization of debt issuance cost 0.3 0.4 Accretion of debt discount 5.1 6.5 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Lease, Cost | The balance sheet information related to our operating leases is as follows ( in millions ): September 28, 2019 Other non-current assets $ 34.6 Total operating ROU assets $ 34.6 Other current liabilities $ 11.8 Other non-current liabilities 24.2 Total operating lease liabilities $ 36.0 |
Lessee, Operating Lease, Liability, Maturity | Future minimum operating lease payments as of September 28, 2019 are as follows ( in millions ): Operating Leases Remainder of 2020 $ 9.1 2021 11.8 2022 7.9 2023 3.7 2024 2.3 Thereafter 5.1 Total lease payments $ 39.9 Less: Interest (3.9 ) Present value of lease liabilities $ 36.0 |
Lessee, Operating Lease, Disclosure | Prior to the adoption of the new lease standard, future minimum undiscounted operating lease payments as of June 29, 2019 , excluding non-lease components, we as follows ( in millions ): Operating Leases Fiscal 2020 $ 11.7 Fiscal 2021 10.8 Fiscal 2022 7.4 Fiscal 2023 3.9 Fiscal 2024 2.5 Thereafter 5.3 Less: sublease income (0.1 ) Total lease payments $ 41.5 |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of various restructuring plans | The following table presents the adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three months ended September 28, 2019 (in millions) : Balance June 29, 2019 Three Months Ended September 28, 2019 Charges Cash Settlements Non-cash Settlements and Other Adjustments (2) Balance September 28, 2019 Fiscal 2019 Plan NSE, including AW (1) $ 8.7 $ 0.3 $ (1.0 ) $ (0.5 ) $ 7.5 Plans Prior to Fiscal 2017 Other Plans (1) 0.1 — — (0.1 ) — Total $ 8.8 $ 0.3 $ (1.0 ) $ (0.6 ) $ 7.5 (1) Plan type includes workforce reduction cost. (2) Other adjustments including $0.2 million lease liability reclassification to Operating lease liability upon ASC 842 adoption. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [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 28, 2019 and September 29, 2018 , as follows ( in millions ): Three Months Ended September 28, 2019 September 29, 2018 Cost of revenues $ 1.0 $ 0.8 Research and development 1.7 1.2 Selling, general and administrative 7.6 6.1 Total stock-based compensation expense $ 10.3 $ 8.1 |
Employee Pension and Other Be_2
Employee Pension and Other Benefit Plans (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
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 28, 2019 September 29, 2018 Service cost $ 0.1 $ — Interest cost 0.4 0.6 Expected return on plan assets (0.4 ) (0.4 ) Amortization of net actuarial losses 0.7 0.6 Net periodic benefit cost $ 0.8 $ 0.8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
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 the three months ended September 28, 2019 and September 29, 2018 , ( in millions ): Three Months Ended September 28, 2019 September 29, 2018 Balance as of beginning of period $ 8.7 $ 8.2 Provision for warranty 0.4 0.4 Utilization of reserve (1.0 ) (1.2 ) Adjustments related to pre-existing warranties (including changes in estimates) 0.7 1.6 Balance as of end of period $ 8.8 $ 9.0 |
Operating Segments and Geogra_2
Operating Segments and Geographic Information (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of information on reportable segments | The following tables presents information on the Company’s reportable segments (in millions): Three Months Ended September 28, 2019 Network and Service Enablement Network Enablement Service Enablement Network and Service Enablement Optical Security and Performance Products Other Items Consolidated GAAP Measures Product revenue $ 177.2 $ 7.7 $ 184.9 $ 79.8 $ — $ 264.8 Service revenue 21.7 13.2 34.9 0.2 — 35.0 Net revenue $ 198.9 $ 20.9 $ 219.8 $ 80.0 $ — $ 299.8 Gross profit $ 128.0 $ 12.6 $ 140.6 $ 43.3 $ (9.5 ) $ 174.4 Gross margin 64.4 % 60.3 % 64.0 % 54.1 % 58.2 % Operating income $ 22.3 $ 30.4 $ (32.0 ) $ 20.7 Operating margin 10.1 % 38.0 % 6.9 % Three Months Ended September 29, 2018 Network and Service Enablement 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 28, 2019 September 29, 2018 Corporate reconciling items impacting gross profit: Total segment gross profit $ 183.9 $ 160.6 Stock-based compensation (1.0 ) (0.8 ) Amortization of intangibles (8.4 ) (9.4 ) Other charges unrelated to core operating performance (0.1 ) — GAAP gross profit $ 174.4 $ 150.4 Corporate reconciling items impacting operating income: Total segment operating income $ 52.7 $ 43.8 Stock-based compensation (10.3 ) (8.1 ) Amortization of intangibles (17.1 ) (19.2 ) Other charges unrelated to core operating performance (1) (4.3 ) (2.9 ) Restructuring and related charges (0.3 ) (14.8 ) GAAP operating income $ 20.7 $ (1.2 ) (1) During the three months ended September 28, 2019 and September 29, 2018 , other charges unrelated to core operating performance primarily consisted of certain acquisiti on and integration related changes, transformational initiatives such as, site consolidations, and reorganization, loss on sale of investments 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 28, 2019 September 29, 2018 Product Revenue Service Revenue Total Product Revenue Service Revenue Total Americas: United States $ 71.4 $ 13.6 $ 85.0 $ 60.1 $ 12.7 $ 72.8 Other Americas 16.6 4.1 20.7 17.9 3.1 21.0 Total Americas $ 88.0 $ 17.7 $ 105.7 $ 78.0 $ 15.8 $ 93.8 Asia-Pacific: Greater China $ 70.5 $ 1.4 $ 71.9 $ 58.7 $ 0.2 $ 58.9 Other Asia 31.3 4.0 35.3 36.0 3.5 39.5 Total Asia-Pacific $ 101.8 $ 5.4 $ 107.2 $ 94.7 $ 3.7 $ 98.4 EMEA: Switzerland $ 12.2 $ — $ 12.2 $ 25.7 $ — $ 25.7 Other EMEA 62.8 11.9 74.7 42.7 7.9 50.6 Total EMEA $ 75.0 $ 11.9 $ 86.9 $ 68.4 $ 7.9 $ 76.3 Total net revenue $ 264.8 $ 35.0 $ 299.8 $ 241.1 $ 27.4 $ 268.5 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 30, 2019 | Jun. 29, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use asset | $ 34.6 | ||
Lease liability | 36 | ||
Adjustment to accumulated deficit | $ 3 | ||
Derecognition of real estate assets | $ (170.5) | $ (179.9) | |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use asset | 35.5 | ||
Lease liability | 37 | ||
Derecognition of financing obligation | 10.1 | ||
Real Estate | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Derecognition of real estate assets | 7.1 | ||
Accumulated Deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment to accumulated deficit | 3 | ||
Accumulated Deficit | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment to accumulated deficit | $ 3 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Jun. 29, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | $ 5.5 | $ 11.5 |
Change in Contract with Customer, Liability (Roll Forward) | ||
Balance at beginning of period | 68.5 | |
Revenue deferrals for new contracts | 18.9 | |
Revenue recognized during the period | (23) | |
Balance at end of period | 64.4 | |
Short-term deferred revenue | 51.2 | 55.3 |
Long-term deferred revenue | $ 13.2 | $ 13.2 |
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. 28, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 228.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 92.00% |
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. 28, 2019 | Sep. 29, 2018 | May 29, 2018 | |
Numerator: | |||
Net income (loss) | $ 6.8 | $ (15.3) | |
Weighted-average shares outstanding: | |||
Basic (in dollars per share) | 229.4 | 227.2 | |
Shares issuable assuming conversion of convertible notes (in shares) | 2.8 | 0 | |
Effect of dilutive securities from stock-based benefit plans (in shares) | 4.2 | 0 | |
Diluted (in dollars per share) | 236.4 | 227.2 | |
Net income (loss) per share: | |||
Basic (in shares) | $ 0.03 | $ (0.07) | |
Diluted (in shares) | $ 0.03 | $ (0.07) | |
Anti-dilutive securities excluded from computation of earnings per share | |||
Total potentially dilutive securities (in shares) | 0.1 | 8.6 | |
2033 Notes | Convertible Notes | |||
Convertible notes | |||
Interest rate on senior convertible notes | 0.625% | ||
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) | 0 | 1.6 | |
Restricted Stock Units | |||
Anti-dilutive securities excluded from computation of earnings per share | |||
Total potentially dilutive securities (in shares) | 0.1 | 7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | $ 725,800,000 | $ 734,900,000 |
Other comprehensive income (loss) before reclassification | (27,400,000) | |
Amounts reclassified to accumulated other comprehensive loss | 700,000 | |
Net change in accumulated other comprehensive income (loss) | (26,700,000) | (12,200,000) |
Balance at the end of the period | 708,100,000 | 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 | (134,600,000) | (102,900,000) |
Net change in accumulated other comprehensive income (loss) | (26,700,000) | (12,200,000) |
Balance at the end of the period | (161,300,000) | $ (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 | (5,000,000) | |
Other comprehensive income (loss) before reclassification | 0 | |
Amounts reclassified to accumulated other comprehensive loss | 0 | |
Net change in accumulated other comprehensive income (loss) | 0 | |
Balance at the end of the period | (5,000,000) | |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | (101,000,000) | |
Other comprehensive income (loss) before reclassification | (27,400,000) | |
Amounts reclassified to accumulated other comprehensive loss | 0 | |
Net change in accumulated other comprehensive income (loss) | (27,400,000) | |
Balance at the end of the period | (128,400,000) | |
Change in unrealized components of defined benefit obligations | ||
Changes in accumulated other comprehensive income (loss) by component | ||
Balance at the beginning of the period | (28,600,000) | |
Other comprehensive income (loss) before reclassification | 0 | |
Amounts reclassified to accumulated other comprehensive loss | 700,000 | |
Net change in accumulated other comprehensive income (loss) | 700,000 | |
Balance at the end of the period | $ (27,900,000) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | May 31, 2019 | Oct. 30, 2018 | Sep. 28, 2019 | Jun. 29, 2019 |
Business Acquisition [Line Items] | ||||
Earn-out period | 4 years | |||
Performance based earn-out payments (up to) | $ 63 | |||
Fair value of contingent consideration | 40.1 | $ 38.4 | ||
3Z Telecom, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash consideration paid at closing | $ 23.2 | |||
Earn-out liability | $ 7 | |||
Earn-out period | 2 years | |||
Escrow payments | $ 4.3 | |||
Fair value of contingent consideration | $ 5.5 | |||
3Z Telecom, Inc. | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 5 years | |||
3Z Telecom, Inc. | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 6 years | |||
RPC Photonics, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash consideration paid at closing | $ 33.4 | |||
Earn-out period | 4 years | |||
Escrow payments | $ 3.5 | |||
Performance based earn-out payments (up to) | 53 | |||
Fair value of contingent consideration | $ 36.2 | $ 31.7 | ||
RPC Photonics, Inc. | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 6 years | |||
RPC Photonics, Inc. | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 7 years | |||
Customer Backlog | 3Z Telecom, Inc. | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 1 year | |||
Customer Backlog | RPC Photonics, Inc. | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 1 year |
Acquisitions - Consideration Tr
Acquisitions - Consideration Transferred (Details) - USD ($) $ in Millions | May 31, 2019 | Oct. 30, 2018 | Sep. 28, 2019 | Jun. 29, 2019 |
Business Acquisition [Line Items] | ||||
Fair value of contingent consideration | $ 40.1 | $ 38.4 | ||
3Z Telecom, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash consideration paid at closing | $ 18.9 | |||
Escrow payments | 4.3 | |||
Fair value of contingent consideration | 5.5 | |||
Total purchase consideration | $ 28.7 | |||
RPC Photonics, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash consideration paid at closing | $ 29.9 | |||
Escrow payments | 3.5 | |||
Fair value of contingent consideration | 36.2 | $ 31.7 | ||
Total purchase consideration | $ 69.6 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 | May 31, 2019 | Oct. 30, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 376.7 | $ 381.1 | ||
3Z Telecom, Inc. | ||||
Business Acquisition [Line Items] | ||||
Tangible assets acquired | $ 4.1 | |||
Goodwill | 12.2 | |||
Total consideration transferred | 28.7 | |||
3Z Telecom, Inc. | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 4.4 | |||
3Z Telecom, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 7.9 | |||
3Z Telecom, Inc. | Customer Backlog | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 0.1 | |||
RPC Photonics, Inc. | ||||
Business Acquisition [Line Items] | ||||
Tangible assets acquired | $ 5.7 | |||
Goodwill | 33.9 | |||
Total consideration transferred | 69.6 | |||
RPC Photonics, Inc. | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 15.7 | |||
RPC Photonics, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 14 | |||
RPC Photonics, Inc. | Customer Backlog | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 0.3 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired (Details) - USD ($) $ in Millions | May 31, 2019 | Oct. 30, 2018 |
3Z Telecom, Inc. | ||
Business Acquisition [Line Items] | ||
Cash | $ 2.2 | |
Other assets | 3.6 | |
Total liabilities | (1.7) | |
Net tangible assets acquired | $ 4.1 | |
RPC Photonics, Inc. | ||
Business Acquisition [Line Items] | ||
Cash | $ 1.8 | |
Other current assets | 1.8 | |
Property and equipment | 2.6 | |
Total liabilities | (0.5) | |
Net tangible assets acquired | $ 5.7 |
Balance Sheet and Other Detai_3
Balance Sheet and Other Details - Accounts Receivable Reserves and Allowances (Details) $ in Millions | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Components of accounts receivable reserves and allowances | |
Beginning balance | $ 2 |
Charged to Costs and Expenses | 0.4 |
Deductions | (0.2) |
Ending balance | $ 2.2 |
Balance Sheet and Other Detai_4
Balance Sheet and Other Details - Inventories (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Inventories, net | ||
Finished goods | $ 35.8 | $ 36.7 |
Work in process | 22.9 | 26.5 |
Raw materials | 40.7 | 39.5 |
Inventories, net | $ 99.4 | $ 102.7 |
Balance Sheet and Other Detai_5
Balance Sheet and Other Details - Prepayments and Other Current Assets (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Prepayments and other current assets | ||
Prepayments | $ 14 | $ 14.2 |
Asset held for sale | 2.5 | 2.5 |
Advances to contract manufacturers | 6.1 | 5.1 |
Refundable income taxes | 8.1 | 8.9 |
Transaction tax receivables | 11.1 | 11.8 |
Other current assets | 10 | 7.4 |
Prepayments and other current assets | $ 51.8 | $ 49.9 |
Balance Sheet and Other Detai_6
Balance Sheet and Other Details - Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Other current liabilities | ||
Customer prepayments | $ 17.7 | $ 30.2 |
Restructuring accrual | 7.4 | 8.6 |
Income tax payable | 11 | 8.5 |
Warranty accrual | 4.8 | 4.7 |
Transaction tax payable | 2.7 | 3.8 |
Operating lease liabilities (Note 12) | 11.8 | |
Foreign exchange forward contracts liability | 4.6 | 4 |
Other | 13.1 | 12.6 |
Other current liabilities | $ 73.1 | $ 72.4 |
Balance Sheet and Other Detai_7
Balance Sheet and Other Details - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Other non-current liabilities | ||
Pension and post-employment benefits | $ 98.9 | $ 103.2 |
Financing obligation | 16.3 | 25.5 |
Deferred tax liability | 12.9 | 14.6 |
Long-term deferred revenue | 13.2 | 13.2 |
Fair value of contingent consideration | 38.4 | 37.7 |
Operating lease liabilities (Note 12) | 24.2 | |
Uncertain tax position | 12.9 | 13.6 |
Other | 16 | 18.7 |
Other non-current liabilities | $ 232.8 | $ 226.5 |
Investments, Forward Contract_3
Investments, Forward Contracts and Fair Value Measurements - Available for Sale Securities Reconciliation (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | $ 0.9 | $ 0.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.3) | (0.3) |
Fair Value | 0.6 | 0.6 |
Asset-backed securities | ||
Available-for-sale Debt Securities [Abstract] | ||
Amortized Cost/ Carrying Cost | 0.9 | 0.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.3) | (0.3) |
Fair Value | $ 0.6 | $ 0.6 |
Investments, Forward Contract_4
Investments, Forward Contracts and Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | |
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 | $ 600,000 | $ 600,000 | |
Other-than-temporary impairment loss | 0 | $ 0 | |
Performance based earn-out payments (up to) | $ 63,000,000 | ||
Earn-out period | 4 years | ||
Fair value of contingent consideration | $ 40,100,000 | 38,400,000 | |
Payments for continent earn-out liabilities | 0 | ||
Not designated | Foreign exchange forward contracts | |||
Foreign Currency Forward Contracts | |||
Derivative asset, fair value | 2,000,000 | 1,200,000 | |
Derivative liability, fair value | $ 4,600,000 | 4,000,000 | |
Derivative, term of contract | 120 days | ||
Loss on derivatives | $ 2,600,000 | $ 1,300,000 | |
Not designated | Foreign exchange forward contracts | Held to purchase | |||
Foreign Currency Forward Contracts | |||
Notional amount of forward contracts | 116,000,000 | 117,800,000 | |
Not designated | Foreign exchange forward contracts | Held to sell | |||
Foreign Currency Forward Contracts | |||
Notional amount of forward contracts | 33,700,000 | 31,300,000 | |
Short-term investments | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Deferred compensation plan assets | 1,500,000 | 1,500,000 | |
Other non-current assets | |||
Investments, Forward Contracts and Fair Value Measurements | |||
Total debt available-for-sale securities | 600,000 | 600,000 | |
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 | $ 800,000 | $ 800,000 |
Investments, Forward Contract_5
Investments, Forward Contracts and Fair Value Measurements - Contractual Maturities (Details) $ in Millions | Sep. 28, 2019USD ($) |
Amortized Cost/ Carrying Cost | |
Amounts maturing in more than 5 years | $ 0.9 |
Total debt available-for-sale securities | 0.9 |
Estimated Fair Value | |
Amounts maturing in more than 5 years | 0.6 |
Total debt available-for-sale securities | $ 0.6 |
Investments, Forward Contract_6
Investments, Forward Contracts and Fair Value Measurements - Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Debt available-for-sale securities | ||
Total debt available-for-sale securities | $ 0.6 | $ 0.6 |
Money market funds | 336.1 | 322.9 |
Trading securities | 1.5 | 1.5 |
Foreign currency forward contract | 2 | 1.2 |
Total assets | 340.2 | 326.2 |
Liability: | ||
Foreign currency forward contract | 4.6 | 4 |
Contingent consideration | 40.1 | 38.4 |
Total liabilities | 44.7 | 42.4 |
Fair value of contingent consideration, current | 1.7 | 0.7 |
Fair value of contingent consideration, noncurrent | 38.4 | 37.7 |
Prepayments and other current assets | ||
Debt available-for-sale securities | ||
Total assets | 2 | |
Other current assets | ||
Debt available-for-sale securities | ||
Total assets | 1.2 | |
Cash and cash equivalents | ||
Debt available-for-sale securities | ||
Total assets | 328.7 | 315.5 |
Short-term investments | ||
Debt available-for-sale securities | ||
Total assets | 1.5 | 1.5 |
Restricted cash | ||
Debt available-for-sale securities | ||
Total assets | 3.5 | 3.5 |
Other non-current assets | ||
Debt available-for-sale securities | ||
Total assets | 4.5 | 4.5 |
Other current liabilities | ||
Liability: | ||
Total liabilities | 4.6 | 4 |
Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0.6 | 0.6 |
Level 1 | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Money market funds | 336.1 | 322.9 |
Trading securities | 1.5 | 1.5 |
Foreign currency forward contract | 0 | 0 |
Total assets | 337.6 | 324.4 |
Liability: | ||
Foreign currency forward contract | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Level 2 | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0.6 | 0.6 |
Money market funds | 0 | 0 |
Trading securities | 0 | 0 |
Foreign currency forward contract | 2 | 1.2 |
Total assets | 2.6 | 1.8 |
Liability: | ||
Foreign currency forward contract | 4.6 | 4 |
Contingent consideration | 0 | 0 |
Total liabilities | 4.6 | 4 |
Level 2 | Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0.6 | 0.6 |
Level 3 | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | 0 | 0 |
Money market funds | 0 | 0 |
Trading securities | 0 | 0 |
Foreign currency forward contract | 0 | 0 |
Total assets | 0 | 0 |
Liability: | ||
Foreign currency forward contract | 0 | 0 |
Contingent consideration | 40.1 | 38.4 |
Total liabilities | 40.1 | 38.4 |
Level 3 | Asset-backed securities | ||
Debt available-for-sale securities | ||
Total debt available-for-sale securities | $ 0 | $ 0 |
Investments, Forward Contract_7
Investments, Forward Contracts and Fair Value Measurements - Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Net change in fair value of contingent liabilities | $ 1.7 | $ 0 |
Contingent Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 38.4 | |
Net change in fair value of contingent liabilities | 1.7 | |
Balance at end of period | $ 40.1 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Changes in goodwill | |
Balance at the beginning of the period | $ 381.1 |
Currency translation adjustments | (4.4) |
Balance at the end of the period | 376.7 |
Network Enablement | |
Changes in goodwill | |
Balance at the beginning of the period | 338.9 |
Currency translation adjustments | (4.4) |
Balance at the end of the period | 334.5 |
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 | 42.2 |
Currency translation adjustments | 0 |
Balance at the end of the period | $ 42.2 |
Acquired Developed Technology_3
Acquired Developed Technology and Other Intangibles (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 661.4 | $ 666.8 | |
Accumulated Amortization | (469.6) | (455.2) | |
Net | 191.8 | 211.6 | |
Cost of revenues | 8.4 | $ 9.4 | |
Operating expenses | 8.7 | 9.8 | |
Total amortization of intangible assets | 17.1 | $ 19.2 | |
Estimated future amortization expense | |||
Remainder of 2020 | 50 | ||
2021 | 62.7 | ||
2022 | 36.8 | ||
2023 | 23 | ||
2024 | 9.2 | ||
Thereafter | 10.1 | ||
Total amortization | 191.8 | ||
Acquired developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 433.9 | 437 | |
Accumulated Amortization | (317.8) | (311.1) | |
Net | 116.1 | 125.9 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 192 | 193.7 | |
Accumulated Amortization | (132.6) | (126.3) | |
Net | 59.4 | 67.4 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 35.5 | 36.1 | |
Accumulated Amortization | (19.2) | (17.8) | |
Net | $ 16.3 | $ 18.3 |
Debt - Carrying Amounts of the
Debt - Carrying Amounts of the Liability and Equity Components (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 | May 29, 2018 |
Carrying amounts of the liability and equity components: | |||
Carrying amount of liability component | $ 584.3 | $ 578.8 | |
Convertible Notes | |||
Carrying amounts of the liability and equity components: | |||
Unamortized discount of liability component | (94.7) | (99.8) | |
Unamortized debt issuance cost | (6) | (6.4) | |
Carrying amount of equity component | 136.8 | 136.8 | |
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 | Mar. 22, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | Mar. 22, 2017 |
Debt details | |||||||||
Repayments of convertible debt | $ 0 | $ 134,300,000 | |||||||
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 | ||||||||
Effective discount rate | 5.30% | ||||||||
Derivative, term of contract | 5 years | ||||||||
Expected remaining term | 3 years 8 months 12 days | ||||||||
Proceeds from debt, net of issuance costs | $ 67,300,000 | ||||||||
Fair market value of convertible debt | $ 271,800,000 | $ 261,300,000 | |||||||
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% | ||||||||
Effective discount rate | 4.80% | ||||||||
Derivative, term of contract | 7 years | ||||||||
Expected remaining term | 4 years 4 months 24 days | ||||||||
Proceeds from debt, net of issuance costs | $ 451,100,000 | ||||||||
Fair market value of convertible debt | $ 567,000,000 | $ 540,800,000 | |||||||
0.625% Senior Convertible Notes | Convertible Notes | |||||||||
Debt details | |||||||||
Interest rate on senior convertible notes | 0.625% | ||||||||
Debt redemption | $ 142,700,000 | ||||||||
Repayments of convertible debt | $ 134,300,000 | ||||||||
2033 Notes Redeemed By Holders | Convertible Notes | |||||||||
Debt details | |||||||||
Debt redemption | 112,000,000 | ||||||||
Repayments of convertible debt | $ 111,800,000 | ||||||||
Shares issued in debt conversion (in shares) | 231,795 | ||||||||
2033 Notes Redeemed By The Company | Convertible Notes | |||||||||
Debt details | |||||||||
Debt redemption | $ 30,700,000 | ||||||||
Repayments of convertible debt | $ 30,800,000 | ||||||||
Exchange Transaction | 1.75% Senior Convertible Notes | Convertible Notes | |||||||||
Debt details | |||||||||
Debt issued | 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. 28, 2019 | Sep. 29, 2018 | |
Debt Disclosure [Abstract] | ||
Interest expense-contractual interest | $ 2.1 | $ 2.5 |
Amortization of debt issuance cost | 0.3 | 0.4 |
Accretion of debt discount | $ 5.1 | $ 6.5 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 3.3 |
Weighted average remaining lease term | 4 years 4 months 24 days |
Weighted average discount rate | 4.80% |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3.4 |
Operating ROU assets obtained in exchange for new operating lease obligations | $ 1.9 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) $ in Millions | Sep. 28, 2019USD ($) |
Leases [Abstract] | |
Other non-current assets | $ 34.6 |
Total operating ROU assets | 34.6 |
Other current liabilities | 11.8 |
Other non-current liabilities | 24.2 |
Total operating lease liabilities | $ 36 |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) $ in Millions | Sep. 28, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2020 | $ 9.1 |
2021 | 11.8 |
2022 | 7.9 |
2023 | 3.7 |
2024 | 2.3 |
Thereafter | 5.1 |
Total lease payments | 39.9 |
Less: Interest | (3.9) |
Total operating lease liabilities | $ 36 |
Leases - Prior Adoption Future
Leases - Prior Adoption Future Operating Lease Payments (Details) $ in Millions | Jun. 29, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Fiscal 2020 | $ 11.7 |
Fiscal 2021 | 10.8 |
Fiscal 2022 | 7.4 |
Fiscal 2023 | 3.9 |
Fiscal 2024 | 2.5 |
Thereafter | 5.3 |
Less: sublease income | (0.1) |
Total lease payments | $ 41.5 |
Restructuring and Related Cha_3
Restructuring and Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 30, 2019 | Jun. 29, 2019 | |
Summary of various restructuring plans | ||||
Balance at the beginning of the period | $ 8.8 | |||
Charges (Benefits) | 0.3 | $ 14.8 | ||
Cash Settlements | (1) | |||
Non-cash Settlements and Other Adjustments (2) | (0.6) | |||
Balance at the end of the period | 7.5 | |||
Lease liability | 36 | |||
Long-term restructuring accrual | 0.1 | $ 0.2 | ||
NSE, including AW Restructuring Plan | ||||
Summary of various restructuring plans | ||||
Balance at the beginning of the period | 8.7 | |||
Charges (Benefits) | 0.3 | |||
Cash Settlements | (1) | |||
Non-cash Settlements and Other Adjustments (2) | (0.5) | |||
Balance at the end of the period | 7.5 | |||
Other Plans - prior to fiscal 2017 | ||||
Summary of various restructuring plans | ||||
Balance at the beginning of the period | 0.1 | |||
Charges (Benefits) | 0 | |||
Cash Settlements | 0 | |||
Non-cash Settlements and Other Adjustments (2) | (0.1) | |||
Balance at the end of the period | 0 | |||
Accounting Standards Update 2016-02 | NSE, Including AW And Other Plans | ||||
Summary of various restructuring plans | ||||
Lease liability | $ 0.2 | $ 0.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 8.3 | $ 5.7 | |
Unrecognized tax benefits | 50.4 | $ 50.9 | |
Interest and penalties accrued | $ 3.4 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) shares in Thousands | 3 Months Ended |
Sep. 28, 2019USD ($)shares | |
Class of Stock [Line Items] | |
Shares repurchased (in shares) | shares | 104 |
Common stock repurchased | $ 1,500,000 |
Common Stock | |
Class of Stock [Line Items] | |
Remaining authorization for future share repurchases | 198,500,000 |
Share Repurchase Agreement September 2019 | Common Stock | |
Class of Stock [Line Items] | |
Authorized amount under stock repurchase program | 200,000,000 |
Share Repurchase Agreement February 2018 | Common Stock | |
Class of Stock [Line Items] | |
Authorized amount under stock repurchase program | $ 200,000,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation by Function (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 10.3 | $ 8.1 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 1 | 0.8 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 1.7 | 1.2 |
Selling, general and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 7.6 | $ 6.1 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Stock-Based Compensation | ||
Stock-based compensation capitalized to inventory | $ 1 | $ 0.9 |
Full Value Awards - Total | ||
Stock-Based Compensation | ||
Unrecognized stock-based compensation | $ 78.1 | |
Estimated amortization period for unrecognized compensation | 2 years 1 month 6 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) | 2.9 | 3.4 |
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 | $ 7.7 | $ 6.2 |
Restricted Stock Units with Performance Conditions Over Target | ||
Stock-Based Compensation | ||
Granted (in shares) | 0.2 | 0.1 |
Employee Pension and Other Be_3
Employee Pension and Other Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
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 | 0.1 | $ 0 |
Interest cost | 0.4 | 0.6 |
Expected return on plan assets | (0.4) | (0.4) |
Amortization of net actuarial losses | 0.7 | 0.6 |
Net periodic benefit cost | 0.8 | $ 0.8 |
UNITED KINGDOM | ||
Employee Defined Benefit Plans | ||
Employer contributions | 0.6 | |
Other Plans | ||
Employee Defined Benefit Plans | ||
Employer contributions | $ 0.9 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) £ in Millions | 3 Months Ended | |||||
Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 28, 2019GBP (£) | Jun. 29, 2019USD ($) | Jul. 02, 2016GBP (£) | Jun. 30, 2016GBP (£) | |
Loss Contingencies [Line Items] | ||||||
Guarantee liabilities | $ 0 | $ 0 | ||||
Standby letters of credit | $ 7,400,000 | |||||
Product Warranties | ||||||
Warranty Term for most products | 3 years | |||||
Changes in warranty reserve | ||||||
Balance as of beginning of period | $ 8,700,000 | $ 8,200,000 | ||||
Provision for warranty | 400,000 | 400,000 | ||||
Utilization of reserve | (1,000,000) | (1,200,000) | ||||
Adjustments related to pre-existing warranties (including changes in estimates) | 700,000 | 1,600,000 | ||||
Balance as of end of period | 8,800,000 | $ 9,000,000 | ||||
Performance bond | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee liabilities | 900,000 | |||||
Judicial ruling | Case related to amendment of pension for foreign subsidiary | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | $ 8,000,000 | £ 6.5 | ||||
Minimum | Judicial ruling | Case related to amendment of pension for foreign subsidiary | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated liability (in pounds) | £ | £ 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 (in pounds) | £ | £ 8.4 |
Operating Segments and Geogra_3
Operating Segments and Geographic Information - Information on Reportable Segments (Details) $ in Millions | 3 Months Ended | |
Sep. 28, 2019USD ($)segment | Sep. 29, 2018USD ($) | |
Information on reportable segments | ||
Number of broad business categories (in segment) | segment | 2 | |
Total net revenue | $ 299.8 | $ 268.5 |
Gross profit | $ 174.4 | $ 150.4 |
Gross margin (as a percent) | 58.20% | 56.00% |
Operating income | $ 20.7 | $ (1.2) |
Operating margin (as a percent) | 6.90% | (0.40%) |
Other Items | ||
Information on reportable segments | ||
Total net revenue | $ 0 | $ 0 |
Gross profit | (9.5) | (10.2) |
Operating income | (32) | (45) |
Network and Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 219.8 | 190.7 |
Gross profit | $ 140.6 | $ 121.2 |
Gross margin (as a percent) | 64.00% | 63.60% |
Operating income | $ 22.3 | $ 16.4 |
Operating margin (as a percent) | 10.10% | 8.60% |
Network and Service Enablement | Network Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 198.9 | $ 164.5 |
Gross profit | $ 128 | $ 102.9 |
Gross margin (as a percent) | 64.40% | 62.60% |
Network and Service Enablement | Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 20.9 | $ 26.2 |
Gross profit | $ 12.6 | $ 18.3 |
Gross margin (as a percent) | 60.30% | 69.80% |
Optical Security and Performance Products | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 80 | $ 77.8 |
Gross profit | $ 43.3 | $ 39.4 |
Gross margin (as a percent) | 54.10% | 50.60% |
Operating income | $ 30.4 | $ 27.4 |
Operating margin (as a percent) | 38.00% | 35.20% |
Product revenue | ||
Information on reportable segments | ||
Total net revenue | $ 264.8 | $ 241.1 |
Product revenue | Other Items | ||
Information on reportable segments | ||
Total net revenue | 0 | 0 |
Product revenue | Network and Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 184.9 | 163.5 |
Product revenue | Network and Service Enablement | Network Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 177.2 | 149.9 |
Product revenue | Network and Service Enablement | Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 7.7 | 13.6 |
Product revenue | Optical Security and Performance Products | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 79.8 | 77.6 |
Service revenue | ||
Information on reportable segments | ||
Total net revenue | 35 | 27.4 |
Service revenue | Other Items | ||
Information on reportable segments | ||
Total net revenue | 0 | 0 |
Service revenue | Network and Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 34.9 | 27.2 |
Service revenue | Network and Service Enablement | Network Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 21.7 | 14.6 |
Service revenue | Network and Service Enablement | Service Enablement | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | 13.2 | 12.6 |
Service revenue | Optical Security and Performance Products | Segment Measures | ||
Information on reportable segments | ||
Total net revenue | $ 0.2 | $ 0.2 |
Operating Segments and Geogra_4
Operating Segments and Geographic Information - Segment Reconciling Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Information on reportable segments | ||
Gross profit | $ 174.4 | $ 150.4 |
Income from operations | 20.7 | (1.2) |
Stock-based compensation | (10.3) | (8.1) |
Amortization of intangibles | (8.7) | (9.8) |
Restructuring and related charges | (0.3) | (14.8) |
Other Items | ||
Information on reportable segments | ||
Gross profit | (9.5) | (10.2) |
Income from operations | (32) | (45) |
Gross Profit | ||
Information on reportable segments | ||
Gross profit | 174.4 | 150.4 |
Gross Profit | Segment Measures | ||
Information on reportable segments | ||
Gross profit | 183.9 | 160.6 |
Gross Profit | Other Items | ||
Information on reportable segments | ||
Stock-based compensation | (1) | (0.8) |
Amortization of intangibles | (8.4) | (9.4) |
Other charges unrelated to core operating performance | (0.1) | 0 |
Operating Income (Loss) | ||
Information on reportable segments | ||
Income from operations | 20.7 | (1.2) |
Operating Income (Loss) | Segment Measures | ||
Information on reportable segments | ||
Income from operations | 52.7 | 43.8 |
Operating Income (Loss) | Other Items | ||
Information on reportable segments | ||
Stock-based compensation | (10.3) | (8.1) |
Amortization of intangibles | (17.1) | (19.2) |
Other charges unrelated to core operating performance | (4.3) | (2.9) |
Restructuring and related charges | $ (0.3) | $ (14.8) |
Operating Segments and Geogra_5
Operating Segments and Geographic Information - Revenue by geographic area (Details) $ in Millions | 3 Months Ended | |
Sep. 28, 2019USD ($)region | Sep. 29, 2018USD ($) | |
Information on reportable segments | ||
Number of geographic regions | region | 3 | |
Total net revenue | $ 299.8 | $ 268.5 |
Product revenue | ||
Information on reportable segments | ||
Total net revenue | 264.8 | 241.1 |
Service revenue | ||
Information on reportable segments | ||
Total net revenue | 35 | 27.4 |
United States | ||
Information on reportable segments | ||
Total net revenue | 85 | 72.8 |
United States | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 71.4 | 60.1 |
United States | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 13.6 | 12.7 |
Other Americas | ||
Information on reportable segments | ||
Total net revenue | 20.7 | 21 |
Other Americas | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 16.6 | 17.9 |
Other Americas | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 4.1 | 3.1 |
Total Americas | ||
Information on reportable segments | ||
Total net revenue | 105.7 | 93.8 |
Total Americas | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 88 | 78 |
Total Americas | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 17.7 | 15.8 |
Greater China | ||
Information on reportable segments | ||
Total net revenue | 71.9 | 58.9 |
Greater China | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 70.5 | 58.7 |
Greater China | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 1.4 | 0.2 |
Other Asia | ||
Information on reportable segments | ||
Total net revenue | 35.3 | 39.5 |
Other Asia | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 31.3 | 36 |
Other Asia | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 4 | 3.5 |
Total Asia-Pacific | ||
Information on reportable segments | ||
Total net revenue | 107.2 | 98.4 |
Total Asia-Pacific | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 101.8 | 94.7 |
Total Asia-Pacific | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 5.4 | 3.7 |
Switzerland | ||
Information on reportable segments | ||
Total net revenue | 12.2 | 25.7 |
Switzerland | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 12.2 | 25.7 |
Switzerland | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 0 | 0 |
Other EMEA | ||
Information on reportable segments | ||
Total net revenue | 74.7 | 50.6 |
Other EMEA | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 62.8 | 42.7 |
Other EMEA | Service revenue | ||
Information on reportable segments | ||
Total net revenue | 11.9 | 7.9 |
Total EMEA | ||
Information on reportable segments | ||
Total net revenue | 86.9 | 76.3 |
Total EMEA | Product revenue | ||
Information on reportable segments | ||
Total net revenue | 75 | 68.4 |
Total EMEA | Service revenue | ||
Information on reportable segments | ||
Total net revenue | $ 11.9 | $ 7.9 |