Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 27, 2024 | Dec. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 29, 2024 | ||
Current Fiscal Year End Date | --06-29 | ||
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 | 1445 South Spectrum Blvd, Suite 102 | ||
Entity Address, City or Town | Chandler | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85286 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.2 | ||
Entity Common Stock, Shares Outstanding | 221,912,561 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Notice of Annual Meeting of Stockholders and Proxy Statement to be filed pursuant to Regulation 14A within 120 days after Registrant’s fiscal year end of June 29, 2024 are incorporated by reference into Part III of this Report. | ||
Entity Central Index Key | 0000912093 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Jun. 29, 2024 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Phoenix, Arizona |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Revenues: | |||
Total net revenue | $ 1,000.4 | $ 1,106.1 | $ 1,292.4 |
Cost of revenues: | |||
Amortization of acquired technologies | 13.8 | 24.6 | 30 |
Total cost of revenues | 424.5 | 467.3 | 518.9 |
GAAP gross profit | 575.9 | 638.8 | 773.5 |
Operating expenses: | |||
Research and development | 201.9 | 206.9 | 213.2 |
Selling, general and administrative | 333.3 | 328.7 | 365.7 |
Amortization of other intangibles | 6.3 | 8.7 | 9.7 |
Restructuring and related charges (benefits) | 13.6 | 12.1 | (0.1) |
Total operating expenses | 555.1 | 556.4 | 588.5 |
Income from operations | 20.8 | 82.4 | 185 |
Gain on litigation settlement | 0 | 0 | (101.8) |
Loss on convertible note modification | 0 | (2.2) | 0 |
Interest and other income, net | 21.7 | 7.6 | 5.2 |
Interest expense | (30.9) | (27.1) | (23.3) |
Income before income taxes | 11.6 | 60.7 | 65.1 |
Provision for income taxes | 37.4 | 35.2 | 49.6 |
Net (loss) income | $ (25.8) | $ 25.5 | $ 15.5 |
Net (loss) income per share: | |||
Basic (usd per share) | $ (0.12) | $ 0.11 | $ 0.07 |
Diluted (usd per share) | $ (0.12) | $ 0.11 | $ 0.07 |
Shares used in per-share calculations: | |||
Basic (in shares) | 222.6 | 224.6 | 230.9 |
Diluted (in shares) | 222.6 | 226.6 | 238.2 |
Product | |||
Revenues: | |||
Total net revenue | $ 834.8 | $ 936.1 | $ 1,135.5 |
Cost of revenues: | |||
Cost of revenue | 335.2 | 364.9 | 421.3 |
Service | |||
Revenues: | |||
Total net revenue | 165.6 | 170 | 156.9 |
Cost of revenues: | |||
Cost of revenue | $ 75.5 | $ 77.8 | $ 67.6 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (25.8) | $ 25.5 | $ 15.5 |
Other comprehensive (loss) income: | |||
Net change in cumulative translation adjustment, net of tax | (6) | 18.8 | (76.1) |
Net change in available-for-sale investments, net of tax: | |||
Unrealized holding (losses) gains arising during period | 0 | (0.3) | 0.1 |
Net change in defined benefit obligation, net of tax: | |||
Unrealized actuarial (loss) gains arising during period | (2.1) | 2 | 13.9 |
Amortization of actuarial losses (gains) | 0.1 | (0.1) | 2.9 |
Net change in accumulated other comprehensive (loss) income | (8) | 20.4 | (59.2) |
Comprehensive (loss) income | $ (33.8) | $ 45.9 | $ (43.7) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 471.3 | $ 506.5 |
Short-term investments | 19.9 | 14.6 |
Restricted cash | 5 | 4.5 |
Accounts receivable, net | 213.1 | 231.2 |
Inventories, net | 96.5 | 116.1 |
Prepayments and other current assets | 70.7 | 72.1 |
Total current assets | 876.5 | 945 |
Property, plant and equipment, net | 228.2 | 243 |
Goodwill, net | 452.9 | 455.2 |
Intangibles, net | 38.2 | 58.6 |
Deferred income taxes | 82.5 | 87 |
Other non-current assets | 58 | 61.7 |
Total assets | 1,736.3 | 1,850.5 |
Current liabilities: | ||
Accounts payable | 50.4 | 47.2 |
Accrued payroll and related expenses | 48.2 | 50.5 |
Deferred revenue | 65.7 | 78.6 |
Accrued expenses | 25.3 | 21.2 |
Short-term debt | 0 | 96.2 |
Other current liabilities | 57.5 | 49.8 |
Total current liabilities | 247.1 | 343.5 |
Long-term debt | 636 | 629.5 |
Other non-current liabilities | 171.6 | 186.7 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 1 million shares authorized, no shares issued or outstanding at June 29, 2024 and July 1, 2023. | 0 | 0 |
Common stock, $0.001 par value; 1 billion shares authorized; 222 million shares at June 29, 2024 and July 1, 2023, issued and outstanding | 0.2 | 0.2 |
Additional paid-in capital | 70,471.9 | 70,427.3 |
Accumulated deficit | (69,646.5) | (69,600.7) |
Accumulated other comprehensive loss | (144) | (136) |
Total stockholders’ equity | 681.6 | 690.8 |
Total liabilities and stockholders’ equity | $ 1,736.3 | $ 1,850.5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2024 | Jul. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 222,000,000 | 222,000,000 |
Common stock, outstanding (in shares) | 222,000,000 | 222,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |||||
OPERATING ACTIVITIES: | |||||||
Net (loss) income | $ (25.8) | $ 25.5 | $ 15.5 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation expense | 38.6 | 36.2 | 35.7 | ||||
Amortization of acquired technologies and other intangibles | 20.1 | 33.3 | 39.7 | ||||
Stock-based compensation | 49.4 | 51.2 | 52.3 | ||||
Amortization of debt issuance costs and accretion of debt discount | 7.5 | 4.2 | 2.8 | ||||
Net change in fair value of contingent liabilities | (9.5) | (4.6) | 0 | ||||
Loss on convertible note debt modification and settlement | 0 | 2.2 | 101.8 | ||||
Deferred taxes, net | 0.3 | 4.8 | (10.5) | ||||
Restructuring | 13.6 | 12.1 | 0 | ||||
Gain on legal settlement | 0 | (6.7) | 0 | ||||
Other | 5.5 | 5.6 | 4.3 | ||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | 13.9 | 37.4 | (18.3) | ||||
Inventories | 10.5 | (10.7) | (27.7) | ||||
Other current and non-currents assets | (2.1) | 10.3 | (11.3) | ||||
Accounts payable | 3.2 | (9.4) | (5.6) | ||||
Income taxes payable | 1.6 | (2) | (18.2) | ||||
Deferred revenue, current and non-current | (8.8) | (2.1) | 13.2 | ||||
Accrued payroll and related expenses | (4.6) | (25.8) | 3 | ||||
Accrued expenses and other current and non-current liabilities | 3 | (47.4) | 1.4 | ||||
Net cash provided by operating activities | 116.4 | 114.1 | 178.1 | ||||
INVESTING ACTIVITIES: | |||||||
Purchases of short-term investments | (225.1) | (13.1) | 0 | ||||
Maturities of short-term investments | 219.6 | 0 | 0 | ||||
Acquisitions, net of cash acquired and other | 0 | (67.3) | (8.3) | ||||
Purchase price adjustment related to business acquisition | 0 | (0.7) | 0 | ||||
Capital expenditures | (19.5) | (51.1) | (72.5) | ||||
Proceeds from the sale of assets | 3.4 | 5.1 | 9.8 | ||||
Net cash used in investing activities | (21.6) | (127.1) | (71) | ||||
FINANCING ACTIVITIES: | |||||||
Proceeds from issuance of debt | 0 | 118 | 400 | ||||
Payment of debt issuance costs | 0 | (4.2) | (10.5) | ||||
Repurchase and retirement of common stock | (20) | (83.9) | (235.9) | ||||
Payment of financing obligations | (0.2) | (0.1) | (0.1) | ||||
Retirement of convertible notes upon maturity | (96.4) | (68.1) | 0 | ||||
Cash paid in convertible note settlement | 0 | 0 | (351.6) | ||||
Proceeds from exercise of employee stock options and employee stock purchase plan | 6.3 | 7.9 | 7.8 | ||||
Withholding tax payment on vesting of restricted stock awards | (11.1) | (11.8) | (14.1) | ||||
Proceeds from revolving credit facility | 0 | 0 | 150 | ||||
Repayment of revolving credit facility | 0 | 0 | (150) | ||||
Payment of acquisition related contingent consideration and obligations | (4.3) | (7.8) | (6) | ||||
Net cash used in financing activities | (125.7) | (50) | (210.4) | ||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (2.9) | 5.8 | (32.3) | ||||
Net decrease in cash, cash equivalents and restricted cash | (33.8) | (57.2) | (135.6) | ||||
Cash, cash equivalents and restricted cash at beginning of period | [2] | 515.6 | [1] | 572.8 | [1] | 708.4 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 481.8 | 515.6 | [2] | 572.8 | [2] | |
Supplemental disclosure of cash flow information | |||||||
Cash paid for interest | 23.9 | 22 | 17.9 | ||||
Cash paid for income taxes, net of refunds | $ 30.9 | $ 47.5 | $ 77.1 | ||||
[1] These amounts include both current and non-current balances of restricted cash totaling $10.5 million, $9.1 million and $12.9 million as of June 29, 2024, July 1, 2023 and July 2, 2022, respectively. These amounts include both current and non-current balances of restricted cash totaling $9.1 million, $12.9 million and $10.6 million as of July 1, 2023, July 2, 2022, and July 3, 2021, respectively. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | Jul. 03, 2021 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 10.5 | $ 9.1 | $ 12.9 | $ 10.6 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Jul. 03, 2021 | 228.3 | ||||
Beginning balance at Jul. 03, 2021 | $ 763.9 | $ 0.2 | $ 70,183.2 | $ (69,322.3) | $ (97.2) |
Increase (Decrease) in Stockholders' Equity | |||||
Net (loss) income | 15.5 | 15.5 | |||
Other comprehensive income (loss) | (59.2) | (59.2) | |||
Shares issued under employee stock plans, net of tax effects (in shares) | 2.3 | ||||
Shares issued under employee stock plans, net of tax effects | (6.1) | (6.1) | |||
Stock-based compensation | $ 52 | 52 | |||
Repurchase of common stock (in shares) | (14.8) | (14.8) | |||
Repurchase of common stock | $ (235.5) | (235.5) | |||
Convertible note settlement/modification (in shares) | 10.6 | ||||
Convertible note settlement/modification | 141.1 | 141.1 | |||
Balance (in shares) at Jul. 02, 2022 | 226.4 | ||||
Ending balance at Jul. 02, 2022 | 671.7 | $ 0.2 | 70,370.2 | (69,542.3) | (156.4) |
Increase (Decrease) in Stockholders' Equity | |||||
Net (loss) income | 25.5 | 25.5 | |||
Other comprehensive income (loss) | 20.4 | 20.4 | |||
Shares issued under employee stock plans, net of tax effects (in shares) | 2.4 | ||||
Shares issued under employee stock plans, net of tax effects | (3.9) | (3.9) | |||
Stock-based compensation | $ 51.2 | 51.2 | |||
Repurchase of common stock (in shares) | (7.3) | (7.3) | |||
Repurchase of common stock | $ (84.2) | (0.3) | (83.9) | ||
Convertible note settlement/modification | $ 10.1 | 10.1 | |||
Balance (in shares) at Jul. 01, 2023 | 222 | 221.5 | |||
Ending balance at Jul. 01, 2023 | $ 690.8 | $ 0.2 | 70,427.3 | (69,600.7) | (136) |
Increase (Decrease) in Stockholders' Equity | |||||
Net (loss) income | (25.8) | (25.8) | |||
Other comprehensive income (loss) | (8) | (8) | |||
Shares issued under employee stock plans, net of tax effects (in shares) | 2.7 | ||||
Shares issued under employee stock plans, net of tax effects | (4.8) | (4.8) | |||
Stock-based compensation | $ 49.4 | 49.4 | |||
Repurchase of common stock (in shares) | (2.3) | (2.3) | |||
Repurchase of common stock | $ (20) | (20) | |||
Balance (in shares) at Jun. 29, 2024 | 222 | 221.9 | |||
Ending balance at Jun. 29, 2024 | $ 681.6 | $ 0.2 | $ 70,471.9 | $ (69,646.5) | $ (144) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jun. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Description of Business Viavi Solutions, Inc. (VIAVI, also referred to as the Company, we, our and us), is a global provider of network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and railway. VIAVI is also a leader in light management technologies which are used in anti-counterfeiting, 3D sensing, consumer electronics, industrial, automotive, government and aerospace applications. Fiscal Years The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30th. The Company’s 2024, 2023 and 2022 fiscal years were 52-week years ending on June 29, 2024, July 1, 2023, and July 2, 2022, respectively. Principles of Consolidation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Reclassification of Prior Period Balances Certain reclassifications of prior period balances have been made to conform to current presentation. Effective for the first quarter of fiscal 2024, management of certain products moved from the SE segment to the NE segment to better align with operational and go-to-market strategies. As a result, prior period balances have been recast in our NE and SE goodwill balances as of July 2, 2022 in “Note 9. Goodwill” and operating segment tables for the years ended July 1, 2023 and July 2, 2022 in “Note 19. Operating Segments and Geographic Information.” Use of Estimates The preparation of the Company’s Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect 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. Estimates are based on historical factors, current circumstances and the experience and judgment of management. Under changed conditions the Company’s reported financial positions or results of operations may be materially impacted 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 more readily available information. Cash and Cash Equivalents The Company considers highly liquid instruments such as treasury bills, commercial paper and other money market instruments with original maturities of 90 days or less at the time of purchase to be cash equivalents. Restricted Cash At June 29, 2024 and July 1, 2023, the Company’s short-term restricted cash balances were $5.0 million and $4.5 million, respectively. The Company’s long-term restricted cash balances, included in Other non-current assets on the Consolidated Balance Sheets, were $5.5 million and $4.6 million as of June 29, 2024 and July 1, 2023, respectively. These balances primarily include interest-bearing investments in bank deposit and money market funds which act as collateral supporting the issuance of standby letters of credit and performance bonds for the benefit of third parties. Refer to “Note 18. Commitments and Contingencies” for more information. Investments The Company’s investments in debt securities are classified as available for sale investments, recorded at fair value. The cost of securities sold is based on the specific identified method. Unrealized gains and losses resulting from changes in fair value on available-for-sale investments, net of tax, are reported as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. The Company periodically reviews investments in debt securities for impairment. If a debt security’s fair value is below amortized cost and the Company either intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to current earnings for the entire amount of the impairment. If a debt security’s fair value is below amortized cost and the Company does not expect to recover the entire amortized cost of the security, the Company separates the other-than-temporary impairment into: (i) the portion of the loss related to credit factors, or the credit loss portion; and, (ii) the portion of the loss that is not related to credit factors, or the non-credit loss portion. The credit loss portion is recorded as an allowance to credit loss through Interest and other income, net, in the Consolidated Statements of Operations and the non-credit loss portion is recorded as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. The Company’s investments also include fixed term deposits with interest earned recorded as a component of Interest and other income, net, in the Consolidated Statements of Operations. Fair Value of Financial Instruments 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 three levels of inputs that may be used to measure fair value are: • 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 include asset-backed securities, foreign currency forward contracts and debt. 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 June 29, 2024 and July 1, 2023, the Company did not hold any Level 3 investment securities. The Company’s Level 3 liabilities as of June 29, 2024 and July 1, 2023 consist of contingent purchase consideration liabilities related to business acquisitions. The fair value of such earn-out liabilities are generally determined using a Monte Carlo Simulation that includes significant unobservable inputs such as the risk-adjusted discount rate, gross profit volatility, and projected financial forecast of acquired business over the earn-out period. The fair value of certain earn-out liabilities is derived using the estimated probability of success of achieving the earn-out milestones discounted to present value. The fair value of contingent consideration liabilities is remeasured at each reporting period at the estimated fair value based on the inputs on the date of remeasurement, with the change in fair value recognized in the Selling, general and administrative (SG&A) expense in the Consolidated Statements of Operations. Inventories The Company’s inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of net realizable value. On a quarterly basis, the Company assesses the value of its inventory and writes down those inventories determined to be obsolete or in excess of its forecasted usage to their market value. The Company’s estimates of realizable value are based upon management analysis and assumptions including, but not limited to, forecasted sales levels by product, expected product life cycle, product development plans and future demand requirements. The Company’s product line management personnel play a key role in its excess review process by providing updated sales forecasts, managing product transitions and working with manufacturing to minimize excess inventory. Differences between actual market conditions and customer demand to the Company’s forecasts, may create favorable or unfavorable inventory positions, and may result in additional inventory write-downs or higher than expected income from operations. The Company’s inventory amounts include material, labor, and manufacturing overhead costs. Leases 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. If 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 right-of-use (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 on the 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. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using a straight-line method, over the estimated useful lives of the assets: building and improvements 5 to 50 years; machinery and equipment 3 to 30 years; and furniture, fixtures, software and office equipment 2 to 10 years. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the asset or the remaining lease term. Demonstration units are Company products used for demonstration purposes for existing and prospective customers and are amortized using the straight-line method. These assets are generally not intended to be sold and have an estimated useful life of 3 to 5 years. Costs related to software acquired, developed or modified solely to meet the Company’s internal requirements and for which there are no substantive plans to market are capitalized in accordance with the authoritative guidance on accounting for the costs of computer software developed or obtained for internal use. Only costs incurred after the preliminary planning stage of the project and after management has authorized and committed funds to the project are eligible for capitalization. Costs capitalized for computer software developed or obtained for internal use are included in Property, plant and equipment, net, on the Consolidated Balance Sheets. Business Combinations The Company includes the results of operations of the businesses that it acquires from the acquisition date. In allocating the purchase price of a business combination, the Company records all assets acquired and liabilities assumed at fair value as of the date of acquisition, with the excess of the purchase price over the aggregate fair values recorded as goodwill. Additionally, any contingent consideration is recorded at fair value on the acquisition date and classified as a liability. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The fair value assigned to identifiable intangible assets acquired is based on estimates and assumptions made by management at the time of the acquisition. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing as of the acquisition date. Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. Goodwill Goodwill represents the excess of the purchase price paid over the net fair value of assets acquired and liabilities assumed. The Company tests goodwill for impairment at the reporting unit level at least annually, during the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The accounting guidance provides the Company with the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit’s fair value is less than its carry amount. These events and circumstances include, macro-economic conditions, such as a significant adverse change in the Company’s operating environment, industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel, or other events, such as the sale of a reporting unit, adverse regulatory developments or a sustained decrease in the Company’s stock price. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is required. Otherwise, no further testing is required. Under the quantitative test, the Company compares the fair value of a reporting unit to its carrying value. If the estimated fair value exceeds book value, goodwill is considered not to be impaired. However, if the fair value of the reporting unit is less than book value, then goodwill will be impaired by the amount that the carrying amount exceeds the fair value, not to exceed the carrying amount of the goodwill. To estimate the fair value of each reporting unit, a combination of the income and market approach is used. The income approach uses discounted future cash flows in which sales, operating income and cash flow projections are based on assumptions driven by current economic conditions. Key assumptions used in the discounted future cash flow model include, but are not limited to, long-term annual growth rates, terminal growth rates, weighted average cost of capital and the Company’s effective tax rate. The market approach utilizes the Guideline Public Company Method and Guideline Transaction Method to derive fair value. The Guideline Public Company Method determines the fair value of an entity based upon trading multiples calculated using market value of minority interests in publicly-traded companies that are similar to the subject company. The Guideline Transaction Method calculates the fair value of an entity by analyzing recent sales of comparable entities. Refer to “Note 9. Goodwill” for more information. Intangible Assets In connection with the Company’s acquisitions, the Company generally recognizes assets for customer relationships, acquired developed technologies, patents, proprietary know-how, trade secrets, in-process research and development (IPR&D) and trademarks and trade names. Finite lived intangible assets are amortized using the straight-line method over the estimated economic useful lives of the assets, which is the period during which expected cash flows support the fair value of such intangible assets. Refer to “Note 10. Acquired Developed Technology and Other Intangibles” for more information. Long-lived Assets Long-lived assets, including intangible assets and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of any asset or asset group may not be recoverable. Such an evaluation is performed at the lowest identifiable level of cash flows independent of other assets. An impairment loss would be recognized when estimated undiscounted future cash flows generated from the assets are less than their carrying amount. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset or asset group over its estimated fair value. Estimates of future cash flow require significant judgment based on anticipated future operating results, which are subject to variability and change. Pension and Other Post-retirement Benefits The funded status of the Company’s retirement-related benefit plans is recognized on the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at fiscal year end, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the non-pension post-retirement benefit plan the benefit obligation is the accumulated post-retirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon its employees’ retirement. The APBO represents the actuarial present value of post-retirement benefits attributed to employee services already rendered. Unfunded or partially funded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a retirement and non-pension post-retirement benefit obligation equal to this excess. The current portion of the retirement-related benefit obligation represents the actuarial present value of benefits payable in the next 12 months in excess of the fair value of plan assets, measured on a plan-by-plan basis. This liability is recorded in Other current liabilities on the Consolidated Balance Sheets. Net periodic pension cost is recorded in the Consolidated Statements of Operations and includes service cost, interest cost, expected return on plan assets, amortization of prior service cost or credit, and gains or losses previously recognized as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. Service cost represents the actuarial present value of participant benefits attributed to services rendered by employees in the current year. Interest cost represents the time value of money cost associated with the passage of time. Gains or losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Prior service cost or credit represents the cost of benefit improvements attributable to prior service granted in plan amendments. Gains or losses and prior service cost or credit not recognized as a component of net periodic pension cost in the Consolidated Statements of Operations are recognized as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets, net of tax. Those gains or losses and prior service cost or credit are subsequently recognized as a component of net periodic pension cost pursuant to the recognition and amortization provisions of the authoritative guidance. The measurement of the benefit obligation and net periodic pension cost is based on the Company’s estimates and actuarial valuations provided by third-party actuaries and are approved by management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases and mortality rates. The Company evaluates these assumptions periodically but not less than annually. In estimating the expected return on plan assets, the Company considers historical returns on plan assets, diversification of plan investments, adjusted for forward-looking considerations, inflation assumptions and the impact of the active management of the plan’s invested assets. The Company measures its benefit obligation and plan assets using the month-end date of June 30, which is closest to the Company’s fiscal year-end. Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, restricted cash, trade receivables and foreign currency forward contracts. The Company’s cash and cash equivalents and short-term investments are held in safekeeping by large, creditworthy financial institutions. The Company invests its excess cash primarily in institutional money market funds, short-term deposits and similar short duration high quality, investment grade instruments. The Company has established guidelines relative to credit ratings, diversification and maturities that seek to maintain the safety and liquidity of these investments. The Company’s foreign exchange derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreements. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading such risk across several major financial institutions. Potential risk of loss with any one counterparty resulting from such risk is monitored by the Company on an ongoing basis. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. When the Company becomes aware that a specific customer is unable to meet its financial obligations, the Company records a specific allowance to reflect the level of credit risk in the customer’s outstanding receivable balance. In addition, the Company records additional allowances based on certain percentages of aged receivable balances. These percentages consider a variety of factors including, but not limited to, current economic trends, historical payment and bad debt write-off experience. The Company classifies bad debt expenses as SG&A expense in the Consolidated Statements of Operations. The Company is not able to predict changes in the financial stability of its customers. Any material changes in the financial status of any one customer or a group of customers could have a material adverse effect on the Company’s results of operations and financial condition. Although such losses have been within management’s expectations to date, there can be no assurance that such allowances will continue to be adequate. The Company has significant trade receivables concentrated in the telecommunications industry. While the Company’s allowance for doubtful accounts balance is based on historical loss experience along with anticipated economic trends, unanticipated financial instability in the telecommunications industry could lead to higher than anticipated losses. As of June 29, 2024 and July 1, 2023, there were no customer balances that represented 10% or more of the Company’s total accounts receivable, net. During fiscal 2024, 2023 and 2022, one customer generated 10% or more of total net revenues. Refer to “Note 19. Operating Segments and Geographic Information” for more information. The Company relies on a limited number of suppliers and contract manufacturers for a number of key components and sub-assemblies contained in the Company’s products. The Company generally uses a rolling twelve-month forecast based on anticipated product orders, customer forecasts, product order history and backlog to determine its materials requirements for any one period. Lead times for the parts and components that the Company orders may vary significantly and depend on factors such as the specific supplier, contract terms and demand for a component at any given time. If the forecast does not meet actual demand, the Company may have surplus or dearth of some materials and components, as well as excess inventory purchase commitments. The Company could experience reduced or delayed product shipments or incur additional inventory write-downs and cancellation charges or penalties, which may result in increased costs and have a material adverse impact on the Company’s results of operations. Foreign Currency Forward Contracts The Company conducts its business and sells its products to customers primarily in North America, Europe, Asia and South America. In the normal course of business, the Company’s financial position is routinely subject to market risks associated with foreign currency rate fluctuations due to balance sheet positions in foreign currencies. The Company evaluates foreign exchange risks and utilizes foreign currency forward contracts to reduce such risks, hedging the gains or losses generated by the re-measurement of significant foreign currency-denominated monetary assets and liabilities. The fair value of these contracts is reflected as other current assets or liabilities and the change in fair value of these foreign currency forward contracts is recorded as gain or loss in the Consolidated Statements of Operations as a component of Interest and other income, net. The gain or loss from the change in fair value of these foreign currency forward contracts largely offsets the change in fair value of the foreign currency denominated monetary assets or liabilities, which is also recorded as a component of Interest and other income, net in the Consolidated Statements of Operations. Foreign Currency Translation VIAVI transacts business in various foreign currencies. In general, the functional currency of our non-US subsidiaries is the country’s local currency. Consequently, the assets and liabilities of non-U.S. subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. Income and expense accounts are translated at exchange rates from the prior month end, which are deemed to approximate the exchange rate when the income and expense is recognized. Gains and losses from re-measurement of monetary assets and liabilities that are denominated in currencies other than the respective functional currencies are included in the Consolidated Statements of Operations as a component of Interest and other income, net. Revenue Recognition The Company derives revenue from a diverse portfolio of network solutions and optical technology products and services, as follows: • Products: Network Enablement (NE) and Service Enablement (SE) products include instruments, microprobes and perpetual software licenses that support the development, production, maintenance and optimization of network systems. NE and SE are collectively referred to as Network and Service Enablement (NSE). The Company’s Optical Security and Performance (OSP) products include proprietary pigments used for optical security and optical filters used in commercial, government and 3D sensing applications. • Services: The Company also offers a range of product support and professional services, primarily in the NE and SE segments, designed to comprehensively address customer requirements. These include repair, calibration, extended warranty, software support, technical assistance, training and consulting services. Implementation services provided in conjunction with hardware or software solution projects include sale of the products along with project management, set-up and installation. Steps of revenue recognition The Company accounts for revenue in accordance with ASC 606: Revenue from Contracts with Customers , in which the following five steps are applied to recognize revenue: 1. Identify the contract with a customer: Generally, the Company considers customer purchase orders which, in some cases are governed by master sales or other purchase agreements, to be the customer contract. All of the following criteria must be met before the Company considers an agreement to qualify as a contract with a customer under the revenue standard: (i) it must be approved by all parties; (ii) each party’s rights regarding the goods and services to be transferred can be identified; (iii) the payment terms for the goods and services can be identified; (iv) the customer has the ability and intent to pay and collection of substantially all of the consideration is probable; and, (v) the agreement has commercial substance. The Company utilizes judgment to determine the customer’s ability and intent to pay, which is based upon various factors including the customer’s historical payment experience or credit and financial information and credit risk management measures implemented by the Company. 2. Identify the performance obligations in the contract: The Company assesses whether each promised good or service is distinct for the purpose of identifying the various performance obligations in each contract. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer; and, (ii) the Company's promise to transfer the good or service to the customer is separately identifiable or distinct from other promises in the contract. The Company's performance obligations consist of a variety of products and services offerings which include networking equipment; proprietary pigment, optical filters, proprietary software licenses; support and maintenance which includes software and hardware support that extends beyond the Company's standard warranties; installation, professional and implementation services, and training. Identifying and evaluating whether products and services are considered distinct performance obligations may require significant judgment particularly in NSE due to the nature of the product and service offerings. The Company may enter into contracts that involve a significant level of integration and interdependency between a software license and installation services. Judgment may be required to determine whether the software license is considered distinct in the context of the contract and accounted for separately, or not distinct in the context of the contract and accounted for together with the installation service. 3. Determine the transaction price: Transaction price reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to the customer. The Company’s contracts may include terms that could cause variability in the transaction price including rebates, sales returns, market incentives and volume discounts. Variable consideration is generally accounted for at the portfolio level and estimated based on historical information. If a contract includes a variable amount, the price adjustments are estimated at contract inception. In both cases, estimates are updated at the end of each reporting period as additional information becomes available. 4. Allocate the transaction price to performance obligations in the contract: If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Many of the Company’s contracts include multiple performance obligations with a combination of distinct products and services, maintenance and support, professional services and/or training. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements SEC Climate Rules In March 2024, the SEC issued its final climate disclosure rules, which require the disclosure of climate-related information in annual reports and registration statements. The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material. On April 4, 2024, the SEC voluntarily stayed the implementation of the final rules pending the completion of judicial review of the consolidated challenges to the final rules by the Court of Appeals for the Eighth Circuit. The final rules, as originally issued, would be effective for the Company in various fiscal years, starting with its Annual Report on Form 10-K for fiscal year 2026. Disclosures pursuant to the final rules, as originally issued, would be required prospectively, with information for prior periods required only to the extent it was previously disclosed in an SEC filing. The Company is currently evaluating the impact of the final rules on its Consolidated Financial Statements and disclosures and continue to monitor the status of the related legal challenges. Accounting Standards Issued But Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024 (fiscal 2026 for the Company), with early and retrospective adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280), to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The amendments in this update will require public entities to disclose significant segment expenses included within segment profit and loss that are regularly provided to the Company’s Chief Executive Officer as the Company’s Chief Operating Decision Maker (CODM). This guidance is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for the Company), and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and will be applied retrospectively to all prior periods presented in the financial statements. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . The amendments clarify or improve disclosure and presentation requirements on various disclosure areas, including the statement of cash flows, earnings per share, debt, equity, and derivatives. The amendments will align the requirements in the FASB Accounting Standards Codification (ASC) with the SEC’s regulations. The amendments in this ASU will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will not be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. This ASU is not expected to have a material impact on our Consolidated Financial Statements or related disclosures. We reviewed all other accounting pronouncements issued during fiscal 2024 and concluded that they were not applicable to the Company. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3. Earnings Per Share Basic net (loss) income per share is computed by dividing net (loss) income for the period by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share is computed by dividing net (loss) income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. If dilutive, the effect of outstanding Employee Stock Purchase Program (ESPP) purchase rights, restricted stock units (RSUs), performance-based stock units (PSUs), market-based stock units (MSUs), stock options and Senior Convertible Notes is reflected in diluted net (loss) income per share by application of the treasury stock method and/or the if-converted method, as applicable. The calculation of diluted net (loss) income per share excludes all anti-dilutive common shares. The following table sets forth the computation of basic and diluted net (loss) income per share ( in millions, except per share data ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Numerator: Net (loss) income $ (25.8) $ 25.5 $ 15.5 Denominator: Weighted-average shares outstanding: Basic 222.6 224.6 230.9 Shares issuable assuming conversion of convertible notes (1) — 0.3 4.8 Effect of dilutive securities from stock-based compensation plans — 1.7 2.5 Diluted 222.6 226.6 238.2 Net (loss) income per share: Basic $ (0.12) $ 0.11 $ 0.07 Diluted $ (0.12) $ 0.11 $ 0.07 (1) Represents the dilutive impact for the Company's 1.75% Senior Convertible Notes due 2023 (2023 Notes), the 1.00% Senior Convertible Notes due 2024 (2024 Notes) and the 1.625% Senior Convertible Notes due 2026 (2026 Notes). 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. Refer to “Note 11. Debt” for more information. The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Full Value Awards (1) 5.7 3.7 0.6 (1) See “Note 16. Stock-Based Compensation” for definition of Full Value Awards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jun. 29, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Note 4. 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. Changes in accumulated other comprehensive loss by component, net of tax, were as follows ( in millions ): Unrealized losses Foreign currency translation adjustments Change in unrealized components of defined benefit obligations, net of tax (1) Total Beginning balance as of July 1, 2023 $ (5.3) $ (125.4) $ (5.3) $ (136.0) Other comprehensive loss before reclassification — (6.0) (2.1) (8.1) Amounts reclassified from accumulated other comprehensive loss — — 0.1 0.1 Net current period other comprehensive loss — (6.0) (2.0) (8.0) Ending balance as of June 29, 2024 $ (5.3) $ (131.4) $ (7.3) $ (144.0) (1) Activity before reclassifications to the Consolidated Statements of Operations during the fiscal year ended June 29, 2024 relates to the unrealized actuarial loss of $2.8 million, net of income tax effect of $0.7 million. The amount reclassified out of accumulated other comprehensive loss represents the amortization of actuarial loss included as a component of Cost of revenues, R&D and SG&A in the Consolidated Statements of Operations for the year ended June 29, 2024. 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 | 12 Months Ended |
Jun. 29, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Note 5. Acquisitions Jackson Labs Technologies, LLC On October 5, 2022, the Company acquired all of the equity of Jackson Labs Technologies, LLC (Jackson Labs), a privately held company which specializes in Position, Navigation and Timing (PNT) solutions for critical infrastructure serving both military and civilian applications. The acquisition enables the Company to broaden its solutions offering into the rapidly developing PNT landscape. The total purchase consideration included approximately $49.9 million paid in cash at closing and additional contingent consideration of up to $117.0 million for which future cash payments are dependent on the achievement of certain operational and revenue targets over the course of a three-year period beginning in January 2023. The cash consideration paid at closing included escrow payments of $5.0 million for indemnity holdback and $2.0 million subject to final cash and net working capital adjustments. The acquisition 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. In connection with this acquisition, the Company recorded approximately $48.3 million of goodwill and $30.6 million of developed technology and other intangibles. The acquired developed technology and other intangible assets are being amortized over their estimated useful lives ranging from one Goodwill represents the excess of the preliminary estimated purchase consideration over the preliminary estimates of the fair value of the net tangible and intangible assets acquired and has been allocated to the Network Enablement segment. Goodwill is primarily attributable to expected synergies in the acquired technologies that may be leveraged by the Company in future PNT offerings. The goodwill was deductible for U.S. income tax purposes in the year of acquisition. The Company has included the financial results of Jackson Labs in its Consolidated Financial Statements from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to the Consolidated Statements of Operations. Other Acquisitions: On March 29, 2023, April 21, 2023 and June 8, 2023, the Company completed acquisitions accounted for as asset purchases consisting of cash paid at closing of $2.9 million and $0.2 million of indemnity holdback. In connection with these acquisitions, the Company recorded developed technology intangibles of $2.5 million which will be amortized over their estimated useful life of five years. On July 18, 2022, the Company completed an acquisition accounted for as a business combination consisting of cash paid at closing of $17.5 million and $2.0 million of indemnity holdback. In connection with this acquisition, the Company recorded approximately $11.2 million of goodwill, $5.1 million of developed technology and $1.8 million of deferred tax liability. The acquired developed technology asset is being amortized over its estimated useful life of four years. On May 13, 2022 and May 20, 2022, the Company completed business acquisitions for total consideration of approximately $9.5 million in cash paid at close and an earn-out liability of up to $3.3 million cash to be paid based on the occurrence or achievement of certain agreed upon targets. In connection with these acquisitions, the Company recorded $7.3 million of developed technology and other intangibles, $10.0 million of goodwill, and $1.6 million of deferred tax liability resulting from the acquisitions. The acquired developed technology and other intangible assets are being amortized over their estimated useful lives ranging from one On September 17, 2021, the Company acquired all of the equity of one business for approximately $1.6 million cash consideration, of which $1.2 million was paid with cash on hand and $0.4 million remains in current liabilities. The acquisition was accounted for as an asset purchase under the authoritative guidance. The developed technology will be amortized over its estimated useful life of five years. Acquisition-related Contingent Consideration The following table provides a reconciliation of changes in fair value of the Company’s earn-out liabilities for the years ended June 29, 2024 and July 1, 2023, as follows ( in millions ): Total Balance July 2, 2022 $ 2.5 Additions to Contingent Consideration 29.4 Change in Fair Value measurement (4.6) Payments of Contingent Consideration (7.6) Balance July 1, 2023 (1) $ 19.7 Change in Fair Value measurement (9.5) Payments of Contingent Consideration (0.7) Balance June 29, 2024 (2) $ 9.5 (1) Includes $1.1 million in Other current liabilities and $18.6 million in Other non-current liabilities on the Consolidated Balance Sheets. (2) Included in Other non-current liabilities on the Consolidated Balance Sheets. |
Balance Sheet and Other Details
Balance Sheet and Other Details | 12 Months Ended |
Jun. 29, 2024 | |
Balance Sheet And Other Details | |
Balance Sheet and Other Details | Note 6. Balance Sheet and Other Details Contract Balances 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. Contract Asset balances will fluctuate based upon the timing of transfer of services, billings and customers’ acceptance of contractual milestones. Gross Receivables: Includes both billed and Unbilled Receivables/Contract Assets. As of June 29, 2024 and July 1, 2023, the Company had total Unbilled Receivables/Contract Assets of $16.3 million and $13.7 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. 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 table summarizes the activity related to deferred revenue, for the year ended June 29, 2024 ( in millions ): June 29, 2024 Deferred revenue: Balance at beginning of period $ 102.0 Revenue deferrals for new contracts (1) 102.4 Revenue recognized during the period (2) (113.0) Balance at end of period (3) $ 91.4 Short-term deferred revenue $ 65.7 Long-term deferred revenue $ 25.7 (1) Included in these amounts is the impact from foreign currency exchange rate fluctuations. (2) Revenue recognized during the period represents releases from the balance at the beginning of the period as well as releases from the following period quarter-end deferrals. (3) The long-term portion of deferred revenue is included as a component of Other non-current liabilities on the Consolidated Balance Sheets. 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 June 29, 2024. 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 cancellable 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 June 29, 2024, was $237.8 million. The Company expects to recognize 88% of the remaining performance obligations as revenue within the next 12 months, and the residual thereafter. Accounts Receivable - Allowance for Credit Losses The table below presents the activities and balances for allowance for credit losses, as follows ( in millions ): Balance at Beginning of Period Charged to Costs and Expenses Deduction (1) Balance at Year Ended June 29, 2024 $ 1.0 $ 1.3 $ (0.7) $ 1.6 Year Ended July 1, 2023 $ 1.4 $ 0.4 $ (0.8) $ 1.0 Year Ended July 2, 2022 $ 2.0 $ 0.9 $ (1.5) $ 1.4 (1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries. Inventories, net The following table presents the components of inventories, net, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Finished goods $ 44.6 $ 49.0 Work in process 15.4 17.7 Raw materials 36.5 49.4 Inventories, net $ 96.5 $ 116.1 Prepayments and Other Current Assets The following table presents the components of prepayments and other current assets, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Refundable income taxes $ 28.5 $ 27.6 Prepayments 18.5 16.5 Advances to contract manufacturers 5.7 9.8 Transaction tax receivables 3.3 5.1 Assets held for sale 2.5 2.5 Fair value of forward contracts 1.7 3.5 Other current assets 10.5 7.1 Prepayments and other current assets $ 70.7 $ 72.1 Property, Plant and Equipment, net The following table presents the components of property, plant and equipment, net, as follows ( in millions ): June 29, 2024 July 1, 2023 Land $ 19.5 $ 19.6 Buildings and improvements 74.9 74.9 Machinery and equipment 378.6 362.6 Furniture, fixtures, software and office equipment 70.7 76.7 Leasehold improvements 73.0 70.7 Construction in progress 20.0 24.5 Property, plant and equipment, gross 636.7 629.0 Less : Accumulated depreciation and amortization (408.5) (386.0) Property, plant and equipment, net $ 228.2 $ 243.0 Other Non-Current Assets The following table presents the components of other non-current assets, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Operating ROU assets $ 35.8 $ 40.4 Long-term restricted cash 5.5 4.6 Deferred contract cost 2.5 2.9 Deposits 2.4 2.3 Debt issuance cost - Revolving Credit Facility 1.9 2.8 Other non-current assets 9.9 8.7 Other non-current assets $ 58.0 $ 61.7 Other Current Liabilities The following table presents the components of other current liabilities, as follows ( in millions ): June 29, 2024 July 1, 2023 Restructuring accrual (Note 13) $ 14.1 $ 5.8 Operating lease liabilities 9.8 10.1 Income tax payable 5.3 4.4 Interest payable 5.1 5.5 Transaction tax payable 4.0 4.3 Warranty accrual 3.4 4.2 Fair value of forward contracts 1.5 2.4 Acquisition related holdback and related accruals — 4.1 Fair value of contingent consideration (Note 5) — 1.1 Other 14.3 7.9 Other current liabilities $ 57.5 $ 49.8 Other Non-Current Liabilities The following table presents the components of other non-current liabilities, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Pension and post-employment benefits $ 51.2 $ 53.2 Operating lease liabilities 25.7 29.4 Long-term deferred revenue 25.7 23.4 Uncertain tax position 17.0 15.8 Financing obligation 15.7 15.8 Deferred tax liability 11.7 13.9 Fair value of contingent consideration (Note 5) 9.5 18.6 Warranty accrual 4.0 4.8 Asset retirement obligations 3.0 3.8 Restructuring accrual (Note 13) 0.8 — Other 7.3 8.0 Other non-current liabilities $ 171.6 $ 186.7 Interest and Other Income, net The following table presents the components of interest and other income, net, as follows ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Interest income $ 18.9 $ 10.2 $ 3.4 Foreign exchange (loss) gain, net (3.1) (2.2) 1.4 Gain on litigation settlement 7.3 — — Other (loss) income, net (1.4) (0.4) 0.4 Interest and other income, net $ 21.7 $ 7.6 $ 5.2 |
Investments and Forward Contrac
Investments and Forward Contracts | 12 Months Ended |
Jun. 29, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments and Forward Contracts | Note 7. Investments and Forward Contracts Short-Term Investments As of June 29, 2024, the Company’s short-term investments of $19.9 million were comprised of 30-day term deposits of $18.4 million and trading securities related to the deferred compensation plan of $1.5 million, of which $1.4 million was invested in equity securities and $0.1 million was invested in debt securities. As of July 1, 2023, the Company’s short-term investments of $14.6 million were comprised of a 30-day term deposit of $13.1 million and trading securities related to the deferred compensation plan of $1.5 million, of which $1.2 million was invested in equity securities, $0.2 million was invested in money market instruments and $0.1 million was invested in debt securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in the Consolidated Statements of Operations as a component of Interest and other income, net. 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 June 29, 2024, the Company had forward contracts that were effectively closed but not settled with the counterparties by fiscal year end. Therefore, the fair value of these contracts of $1.7 million and $1.5 million is reflected as Prepayments and other current assets and Other current liabilities on the Consolidated Balance Sheets, respectively. As of July 1, 2023, the fair value of these contracts of $3.5 million and $2.4 million is reflected as Prepayments and other current assets and Other current liabilities on the Consolidated Balance Sheets, respectively. The forward contracts outstanding and not effectively closed, with a term of less than 120 days, were transacted near fiscal year ends; therefore, the fair value of the contracts was minimal as of June 29, 2024 and July 1, 2023. As of June 29, 2024 and July 1, 2023, the notional amounts of the forward contracts that the Company held to purchase foreign currencies were $81.9 million and $87.5 million, respectively, and the notional amounts of forward contracts that Company held to sell foreign currencies were $26.8 million and $19.3 million, respectively. The change in the fair value of these foreign currency forward contracts is recorded as gain or loss in the 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 $0.7 million and a gain of $1.2 million for the years ended June 29, 2024 and July 1, 2023, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements Fair Value Measurements The Company’s assets and liabilities measured at fair value for the periods presented are as follows ( in millions ): June 29, 2024 July 1, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Debt available-for-sale securities: Asset-backed securities (1) $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — Total debt available-for-sale securities 0.3 — 0.3 — 0.3 — 0.3 — Money market funds (2) 295.3 295.3 — — 344.8 344.8 — — Trading securities (3) 1.5 1.5 — — 1.5 1.5 — — Foreign currency forward contracts (4) 1.7 — 1.7 — 3.5 — 3.5 — Total assets $ 298.8 $ 296.8 $ 2.0 $ — $ 350.1 $ 346.3 $ 3.8 $ — Liability: Foreign currency forward contracts (5) $ 1.5 $ — $ 1.5 $ — $ 2.4 $ — $ 2.4 $ — Contingent consideration (6) 9.5 — — 9.5 19.7 — — 19.7 Total liabilities $ 11.0 $ — $ 1.5 $ 9.5 $ 22.1 $ — $ 2.4 $ 19.7 (1) Included in Other non-current assets on the Consolidated Balance Sheets. (2) Includes, as of June 29, 2024, $286.7 million in Cash and cash equivalents, $4.9 million in Restricted cash and $3.7 million in Other non-current assets on the Consolidated Balance Sheets. Includes, as of July 1, 2023, $336.5 million in Cash and cash equivalents, $4.3 million in Restricted cash, and $4.0 million in Other non-current assets on the Consolidated Balance Sheets. (3) Included in Short-term investments on the Consolidated Balance Sheets. (4) Included in Prepayments and other current assets on the Consolidated Balance Sheets. (5) Included in Other current liabilities on the Consolidated Balance Sheets. (6) As of June 29, 2024, included in Other non-current liabilities on the Consolidated Balance Sheets. As of July 1, 2023, includes certain amounts in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. Other Fair Value Measures Fair Value of Debt: If measured at fair value on the Consolidated Balance Sheets, the Company’s 3.75% Senior Notes (2029 Notes), 1.625% Senior Convertible Notes (2026 Notes) and 1.00% Senior Convertible Notes (2024 Notes) would be classified in Level 2 of the fair value hierarchy as they are not actively traded in the markets. The Company’s debt measured at fair value for the periods presented are as follows ( in millions ): June 29, 2024 July 1, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt: 3.75% Senior Notes $ 338.9 $ — $ 338.9 $ — $ 341.8 $ — $ 341.8 $ — 1.625% Senior Convertible Notes 238.1 — 238.1 — 262.7 — 262.7 — 1.00% Senior Convertible Notes (1) — — — — 95.6 — 95.6 — Total liabilities $ 577.0 $ — $ 577.0 $ — $ 700.1 $ — $ 700.1 $ — (1) The 2024 Notes were retired upon maturity on March 1, 2024. See “Note 11. Debt” for further discussion of the Company’s debt. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 9. Goodwill Changes in the carry value of goodwill allocated segment are as follows (in millions) : Network Enablement (1) Service Enablement (1) Optical Security Total Balance as of July 2, 2022 (2) $ 332.8 $ 12.6 $ 42.2 $ 387.6 Acquisitions 60.0 — — 60.0 Measurement period adjustment (0.5) — — (0.5) Currency translation 6.9 1.2 — 8.1 Balance as of July 1, 2023 (3) $ 399.2 $ 13.8 $ 42.2 $ 455.2 Currency translation (1.1) (0.2) — (1.3) Other adjustment (4) — (1.0) — (1.0) Balance as of June 29, 2024 (5) $ 398.1 $ 12.6 $ 42.2 $ 452.9 (1) Balance as of July 2, 2022 adjusted to reflect a reclass of $1.2 million from Service Enablement to Network Enablement due to a product line movement. (2) Gross goodwill balances for NE, SE and OSP were $634.7 million, $285.2 million and $126.7 million, respectively, as of July 2, 2022. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively, as of July 2, 2022. (3) Gross goodwill balances for NE, SE and OSP were $701.1 million, $286.4 million and $126.7 million, respectively, as of July 1, 2023. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively, as of July 1, 2023. (4) Adjustment related to goodwill acquired as part of a prior acquisition. (5) Gross goodwill balances for NE, SE and OSP were $700.0 million, $285.2 million and $126.7 million, respectively, as of June 29, 2024. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively, as of June 29, 2024. Impairment of Goodwill The Company tests goodwill at the reporting unit level for impairment annually, during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that the asset may be impaired. The Company determined that, based on its organizational structure and the financial information that is provided to and reviewed by the Company’s CODM during fiscal 2024, 2023 and 2022 that its reporting units were NE, SE and OSP. No indications of impairment were identified under the qualitative assessment of goodwill impairment for fiscal years ending on June 29, 2024 and July 2, 2022. In fiscal 2023, the Company performed a quantitative assessment of goodwill impairment for all reporting units. Based on our testing during the fourth quarter of fiscal 2023, the fair value of each of the Company’s reporting units was at least two times the carrying value, and therefore no impairment was identified. |
Acquired Developed Technology a
Acquired Developed Technology and Other Intangibles | 12 Months Ended |
Jun. 29, 2024 | |
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 as of June 29, 2024, and July 1, 2023 ( in millions ): As of June 29, 2024 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Acquired developed technology 2.9 years $ 436.2 $ (401.9) $ 34.3 Customer relationships 1.5 years 194.8 (191.0) 3.8 Other (1) 0.5 years 36.7 (36.6) 0.1 Total intangibles $ 667.7 $ (629.5) $ 38.2 As of July 1, 2023 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Acquired developed technology (2) 3.9 years $ 438.5 $ (390.2) $ 48.3 Customer relationships 2.0 years 195.2 (185.9) 9.3 Other (1) 0.7 years 39.8 (38.8) 1.0 Total intangibles $ 673.5 $ (614.9) $ 58.6 (1) Other intangibles consist of patents, proprietary know-how and trade secrets, trademarks and trade names. (2) During fiscal 2023, we recorded a $0.6 million non-cash charge due to the discontinued use of certain intellectual property. This charge has been recorded within SG&A Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of June 29, 2024, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows ( in millions ): Fiscal Years 2025 $ 15.8 2026 11.3 2027 7.5 2028 3.0 2029 0.6 Total amortization $ 38.2 |
Debt
Debt | 12 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Note 11. Debt As of June 29, 2024 and July 1, 2023, the Company’s debt on the Consolidated Balance Sheets represented the carrying amount of the Senior Convertible and Senior Notes, net of unamortized debt discount and issuance costs, as follows ( in millions ): June 29, 2024 July 1, 2023 Principal amount of 1.00% Senior Convertible Notes $ — $ 96.4 Unamortized 1.00% Senior Convertible Notes debt issuance cost — (0.2) Short-term debt $ — $ 96.2 Principal amount of 3.75% Senior Notes $ 400.0 $ 400.0 Unamortized 3.75% Senior Notes debt issuance cost (4.6) (5.5) Principal amount of 1.625% Senior Convertible Notes 250.0 250.0 Unamortized 1.625% Senior Convertible Notes debt discount (8.1) (12.9) Unamortized 1.625% Senior Convertible Notes debt issuance cost (1.3) (2.1) Long-term debt $ 636.0 $ 629.5 The Company was in compliance with all debt covenants as of June 29, 2024 and July 1, 2023. 1.625% Senior Convertible Notes (2026 Notes) On March 6, 2023, the Company issued $250.0 million aggregate principal amount of 1.625% Senior Convertible Notes due 2026 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The Company issued $132.0 million aggregate principal amount of the 2026 Notes to certain holders of the 1.00% Senior Convertible Notes due 2024 (2024 Notes) in exchange for $127.5 million principal amount of the 2024 Notes (the Exchange Transaction) and issued and sold $118.0 million aggregate principal amount of the 2026 Notes in a private placement to accredited institutional buyers (the Subscription Transactions). The Exchange Transaction was accounted for as a modification. The $127.5 million principal of the 2024 Notes was reduced by $10.1 million, with offsetting increase to additional paid-in capital, to account for the increase in the fair value of the embedded conversion option in the modification. The increase in principal and coupon interest, along with the increased option value, totaled $14.6 million and is a direct reduction from the carrying amount of the debt on the Consolidated Balance Sheets. This amount will be accreted as an adjustment to interest expense on a straight-line basis and will accrete up to the full-face value of the 2026 Notes at maturity. The proceeds of the Subscription Transactions amounted to $113.8 million after issuance costs of $4.2 million. The exchange resulted in $2.2 million of the issuance costs to be recorded as Loss on convertible note modification in the Consolidated Statements of Operations. The remaining issuance costs of $2.0 million as well as $0.3 million of unamortized costs carried over from the 2024 Notes at the exchange date were capitalized within Long-term debt (as a contra-balance) on the Consolidated Balance Sheets and will be amortized as an adjustment to interest expense on a straight-line basis until maturity. The 2026 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 1.625%, payable in cash semi-annually in arrears on March 15 and September 15 of each year, beginning September 15, 2023. The 2026 Notes mature on March 15, 2026 unless earlier converted, redeemed or repurchased. The 2026 Notes may be converted under certain circumstances, based on an initial conversion rate of 75.7963 shares (equivalent to an initial conversion price of approximately $13.19 per share) at the option of the holders into cash up to the principal amount, with the remaining amount converted into cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock at the Company’s election. The initial conversion price represents a 22.5% premium to the closing price of the Company’s common stock on the pricing date, March 1, 2023, which will be subject to customary anti-dilution adjustments. The 2026 Notes may be converted at any time on or prior to the close of business on the business day immediately preceding December 15, 2025, in multiples of $1,000 principal amount, at the option of the holder under the following circumstances: • On any date during any calendar quarter beginning after June 30, 2023 (and only during such calendar quarter) if the closing price of the Company’s common stock was more than 130% of the then current conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading-day period ending on the last trading day of the previous calendar quarter; • If the Company distributes to all or substantially all holders of its common stock rights or warrants (other than pursuant to a stockholder rights plan) entitling them to purchase, for a period of 45 calendar days or less, shares of VIAVI’s common stock at a price less than the average closing sale price of VIAVI’s common stock for the ten trading days preceding the declaration date for such distribution; • If the Company distributes to all or substantially all holders of its common stock, cash or other assets, debt securities or rights to purchase our securities (other than pursuant to a stockholder rights plan), at a per share value exceeding 10% of the closing sale price of the Company’s common stock on the trading day preceding the declaration date for such distribution; • If the Company is party to a specified transaction, a fundamental change or a make-whole fundamental change (each as defined in the indenture of the 2026 Notes); • During the five consecutive business-day period immediately following any ten consecutive trading-day period in which the trading price per $1,000 principal amount of the 2026 Notes for each day during such ten consecutive trading-day period was less than 98% of the product of the closing sale price of VIAVI’s common stock and the applicable conversion rate on such date; or • If the Company calls any or all of the 2026 Notes for Optional Redemption. During the periods from, and including, December 15, 2025 until the close of business on the business day immediately preceding March 15, 2026, holders may convert the 2026 Notes at any time regardless of the foregoing circumstances. Holders of the 2026 Notes may require the Company to purchase all or a portion of the 2026 Notes upon the occurrence of a fundamental change at a purchase price equal to 100% of the principal amount of the 2026 Notes to be purchased, plus accrued and unpaid interest to, but excluding, the fundamental repurchase date. The Company may not redeem the 2026 Notes prior to March 20, 2025. The Company may redeem for cash all or part of the 2026 Notes, at its option, on or after March 20, 2025 if the closing price of the Company’s common stock was at least 130% of the then current conversion price for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides the redemption notice in accordance with the Indenture. If the Company redeems less than all the outstanding 2026 Notes, at least $75.0 million aggregate principal amount of 2026 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date. The Indenture provides for customary events of default, including payment defaults, breaches of covenants, failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs and is continuing, the principal amount of the 2026 Notes, plus accrued and unpaid interest, if any, may be declared immediately due and payable, subject to certain conditions set forth in the Indenture. These amounts automatically become due and payable if an event of default relating to certain events of bankruptcy, insolvency or reorganization occurs. As of June 29, 2024, the expected remaining term of the 2026 Notes is 1.7 years. 3.75% Senior Notes (2029 Notes) On September 29, 2021, the Company issued $400.0 million aggregate principal amount of 3.75% Senior Notes due 2029 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In connection with the issuance of the 2029 Notes, the Company incurred $7.0 million of issuance costs. The debt issuance costs were capitalized and are being amortized to interest expense using the straight-line method. The 2029 Notes are an unsecured obligation of the Company and bear annual interest of 3.75%, payable semi-annually in arrears on April 1 and October 1 of each year, beginning April 1, 2022. The 2029 Notes mature on October 1, 2029 unless earlier redeemed or repurchased. As of June 29, 2024, the expected remaining term of the 2029 Notes is 5.3 years. 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 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). In connection with the issuance of the 2023 Notes, the Company incurred $2.2 million of issuance costs. The debt issuance costs were capitalized and amortized to interest expense using the straight-line method from issuance date through maturity on June 1, 2023. See Senior Convertible Notes Settlement section below for details of the 2023 Notes exchange transactions during fiscal 2022. On June 1, 2023, remaining 2023 Notes principal of $68.1 million was retired upon maturity. 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 of $8.9 million. The debt issuance costs were capitalized and amortized to interest expense using the straight-line method from the issuance date through maturity on March 1, 2024. See Senior Convertible Notes Settlement section below for details of the 2024 Notes exchange transactions during fiscal 2022. On March 1, 2024, the Company converted two notes at the request of the respective note-holders and retired the remaining 2024 Notes principal of $96.4 million upon maturity. Senior Convertible Notes Settlement On September 2, 2021, the Company entered into separate privately-negotiated agreements with certain holders of its 2023 and 2024 Notes. The Company settled $93.8 million principal amount of the 2023 Notes and $181.2 million principal amount of the 2024 Notes in exchange for an aggregate of 10.6 million shares of its common stock, par value $0.001 per share, and $196.5 million in cash. The Company recorded a loss of $85.9 million in connection with the settlement transactions which is presented as Loss on convertible note settlement in the Consolidated Statements of Operations. On November 17, 2021 and November 22, 2021, the Company entered into separate privately-negotiated agreements with certain holders of its 2023 and 2024 Notes. The Company settled $20.6 million principal amount of the 2023 Notes and $25.0 million principal amount of the 2024 Notes in exchange for $59.0 million in cash. The Company recorded a loss of $6.4 million in connection with the settlement transactions which is presented as Loss on convertible note settlement in the Consolidated Statements of Operations. On March 2, 2022, the Company entered into separate privately-negotiated agreements with certain holders of its 2023 and 2024 Notes. The Company settled $23.2 million principal amount of the 2023 Notes and $26.8 million principal amount of the 2024 Notes in exchange for $64.7 million in cash. The Company recorded a loss of $6.4 million in connection with the settlement transactions which is presented as Loss on convertible note settlement in the Consolidated Statements of Operations. On June 3, 2022, the Company entered into separate privately-negotiated agreements with certain holders of its 2023 and 2024 Notes. The Company settled $19.3 million principal amount of the 2023 Notes and $3.1 million principal amount of the 2024 Notes in exchange for $27.1 million in cash. The Company recorded a loss of $3.1 million in connection with the settlement transactions which is presented as Loss on convertible note settlement in the Consolidated Statements of Operations. Senior Secured Asset-Based Revolving Credit Facility On December 30, 2021, we entered into a credit agreement (the Credit Agreement) with Wells Fargo Bank, National Association (Wells Fargo) as administrative agent, and other lender related parties. The Credit Agreement provides for a senior secured asset-based revolving credit facility in a maximum aggregate amount of $300 million, which matures on December 30, 2026. The Credit Agreement also provides that, under certain circumstances, the Company may increase the aggregate amount of revolving commitments thereunder by an aggregate amount of up to $100 million so long as certain conditions are met. The proceeds from the credit facility established under the Credit Agreement will be used for working capital and other general corporate purposes. The obligations under the Credit Agreement are secured by substantially all of the assets of the Company and those of its subsidiaries that are borrowers and guarantors under the Credit Agreement. Amounts outstanding under the Credit Agreement accrue interest as follows: (i) if the amounts outstanding are denominated in US Dollars, at a per annum rate equal to either, at the Company’s election, Term Secured Overnight Financing Rate (SOFR) plus a margin of 1.35% to 1.85% per annum, or a specified base rate plus a margin of 0.25% to 0.75%, in each case, depending on the average excess availability under the facility, (ii) if the amounts outstanding are denominated in Sterling, at a per annum rate equal to the Sterling Overnight Interbank Average Rate (SONIA) plus a margin of 1.2825% to 1.7825%, depending on the average excess availability under the facility, (iii) if the amounts outstanding are denominated in Euros, at a per annum rate equal to the Euro Interbank Offered Rate plus a margin of 1.25% to 1.75%, depending on the average excess availability under the facility, or (iv) if the amounts outstanding are denominated in Canadian Dollars, at a per annum rate equal to either, at the Company’s election, the adjusted Term Canadian Overnight Repo Rate Average (CORRA) plus a margin of 1.25% to 1.75%, or a specified base rate plus a margin of 0.25% to 0.75%, in each case, depending on the average excess availability under the facility. The covenants of the Credit Agreement include customary restrictive covenants that, among other things, restrict the Company’s ability to incur additional indebtedness, grant liens and make certain acquisitions, investments, asset dispositions and restricted payments. In addition, the Credit Agreement contains certain financial covenants that require the Company to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 if excess availability under the facility is less than the greater of 10% of the lesser of maximum revolver amount and borrowing base and $20 million. As of June 29, 2024, we had no borrowings under this facility and our available borrowing capacity was approximately $153.3 million, net of outstanding standby letters of credit of $4.1 million. Revolving Credit Facility On May 5, 2020, the Company entered into a credit agreement with Wells Fargo as administrative agent, and other lender related parties. The Company borrowed $150 million and repaid $150 million under this Credit Agreement during the first quarter of fiscal 2022. In connection with the entry into the Senior Secured Asset-Based Revolving Credit Facility in December 2021, the Company terminated this facility. Interest Expense The following table presents the interest expense for contractual interest and amortization of debt issuance costs ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Interest expense-contractual interest $ 19.7 $ 19.2 $ 16.5 Amortization of debt issuance cost 2.6 2.5 2.8 Accretion of debt discount 4.9 1.6 — Other 3.7 3.8 4.0 Total Interest Expense $ 30.9 $ 27.1 $ 23.3 The effective interest rate on the Company’s contractual debt was 2.77%, 2.65% and 2.25% for fiscal years 2024, 2023 and 2022, respectively. |
Leases
Leases | 12 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Leases | Note 12. Leases The Company is a lessee in several operating leases, primarily real estate facilities for office space. The Company's lease arrangements are composed of operating leases with various expiration dates through March 31, 2042. The Company's leases do not contain any material residual value guarantees. Lease expense and cash flow information related to our operating leases is as follows ( in millions ): June 29, 2024 July 1, 2023 Operating lease costs (1) $ 12.9 $ 13.1 Cash paid for amounts included in the measurement of operating lease liabilities $ 14.1 $ 14.4 Operating ROU assets obtained in exchange for operating lease obligations $ 7.2 $ 7.0 Weighted-average remaining lease term 6.3 years 6.8 years Weighted-average discount rate 5.6 % 4.8 % (1) Total variable lease costs were immaterial during the fiscal years ended June 29, 2024 and July 1, 2023. The total operating costs were included in Cost of revenues, R&D and SG&A in the Consolidated Statements of Operations. Future minimum operating lease payments as of June 29, 2024 are as follows ( in millions ): Fiscal Years 2025 $ 10.2 2026 9.1 2027 6.9 2028 4.8 2029 3.3 Thereafter 8.5 Total lease payments 42.8 Less: Interest (7.3) Present value of lease liabilities $ 35.5 The Company’s ARO liability is primarily associated with leasehold improvements which the Company is contractually obligated to remove at the end of a lease to comply with the lease agreement. The Company derecognizes ARO liabilities when the related obligations are settled. As of June 29, 2024 and July 1, 2023, the Consolidated Balance Sheets included ARO balances of $1.2 million and $0.5 million, respectively, in Other current liabilities and $3.0 million and $3.8 million, respectively, in Other non-current liabilities. A summary of the activity in the ARO accrual is outlined below ( in millions ): Balance at Beginning of Period Liabilities Incurred Liabilities Settled Accretion Expense Balance at End of Period Year ended June 29, 2024 $ 4.3 $ — $ (0.2) $ 0.1 $ 4.2 Year ended July 1, 2023 $ 4.2 $ 0.3 $ (0.3) $ 0.1 $ 4.3 |
Restructuring
Restructuring | 12 Months Ended |
Jun. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 13. Restructuring The Company’s restructuring events are primarily intended to reduce costs, consolidate operations, integrate various acquisitions, streamline product manufacturing and address market conditions. Restructuring charges include severance, benefits and outplacement costs to eliminate a specified number of positions. The timing of associated cash payments is dependent upon the jurisdiction of the affected employees and can extend over multiple periods. Fiscal 2024 Plan During the fourth quarter of fiscal 2024, management approved a restructuring and workforce reduction plan (the Fiscal 2024 Plan) across various functions intended to improve operational efficiencies and better align the Company’s workforce with current business needs. The Company expects approximately 6% of its global workforce to be affected. The Company anticipates the Fiscal 2024 Plan to be substantially complete by the end of fiscal 2025. Fiscal 2023 Plan During the second quarter of fiscal 2023, management approved a restructuring and workforce reduction plan (the Fiscal 2023 Plan) to better align the Company’s workforce with current business needs and strategic growth opportunities. The Fiscal 2023 Plan impacted approximately 5% of the Company’s global workforce. The first phase of the Fiscal 2023 Plan impacted our NSE and OSP segments and Corporate (Corp) functions and was substantially complete as of March 30, 2024. The second phase of the Fiscal 2023 Plan is primarily focused on reducing costs in our SE segment and was substantially complete as of June 29, 2024. A summary of the activity in the restructuring accrual for the fiscal year ended June 29, 2024 is outlined below ( in millions ): Balance as of July 1, 2023 Restructuring and related charges (benefits) Cash Settlements Balance as of June 29, 2024 Fiscal 2024 Plan NSE/Corp $ — $ 13.6 $ (0.2) $ 13.4 OSP — 1.2 — 1.2 Fiscal 2024 Plan — 14.8 (0.2) 14.6 Fiscal 2023 Plan NSE/Corp 3.5 (0.9) (2.6) — OSP 0.6 — (0.6) — Fiscal 2023 Plan Phase I 4.1 (0.9) (3.2) — NSE 1.7 (0.3) (1.1) 0.3 Fiscal 2023 Plan Phase II 1.7 (0.3) (1.1) 0.3 Total (1) $ 5.8 $ 13.6 $ (4.5) $ 14.9 (1) Includes certain amounts in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes The Company’s income (loss) before income taxes consisted of the following ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Domestic $ (95.8) $ (37.6) $ (82.6) Foreign 107.4 98.3 147.7 Income before income taxes $ 11.6 $ 60.7 $ 65.1 The Company’s income tax expense (benefit) consisted of the following ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Federal: Current $ 0.3 $ — $ — Deferred — — — Total federal income tax expense 0.3 — — State: Current 3.3 2.6 (2.2) Deferred — — — Total state income tax expense (benefit) 3.3 2.6 (2.2) Foreign: Current 32.8 27.6 63.2 Deferred 1.0 5.0 (11.4) Total foreign income tax expense 33.8 32.6 51.8 Total income tax expense $ 37.4 $ 35.2 $ 49.6 The state current expense primarily relates to the impact of additional capitalization of R&D costs. The foreign current expense primarily relates to the Company’s profitable operations in certain foreign jurisdictions. The foreign deferred tax expense primarily relates to deferred tax expense accrued on intercompany dividends. A reconciliation of the Company’s income tax expense at the federal statutory rate to the income tax expense at the effective tax rate is as follows ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Income tax expense computed at federal statutory rate $ 2.4 $ 12.8 $ 13.7 Withholding Taxes 5.6 8.0 8.7 U.S. inclusion of foreign earnings 3.8 1.3 19.8 Internal restructuring 1.2 1.2 10.1 Valuation allowance 17.5 0.5 3.3 Foreign rate differential 3.8 4.5 6.9 Reserves 1.2 2.9 1.7 Permanent items (0.6) 1.1 0.3 Fair value change of the earn-out liability (2.0) (1.0) 0.1 Impact of prior years’ taxes 3.0 (0.5) (8.6) Research and experimentation benefits and other tax credits — (1.3) (1.1) State taxes — 2.6 0.8 Disallowed compensations 2.0 3.3 2.2 Senior Convertible Notes settlements — — (8.3) Other (0.5) (0.2) — Income tax expense $ 37.4 $ 35.2 $ 49.6 The components of the Company’s net deferred taxes consisted of the following ( in millions ): Balance as of June 29, 2024 July 1, 2023 July 2, 2022 Gross deferred tax assets: Tax credit carryforwards $ 138.2 $ 136.4 $ 136.7 Net operating loss carryforwards 381.0 437.5 491.8 Capital loss carryforwards 1.0 1.1 1.0 Inventories 37.2 40.2 34.5 Accruals and reserves 53.0 58.1 58.5 Intangibles including acquisition-related items 510.6 597.5 603.6 Capitalized research costs 312.3 186.7 100.3 Other 43.5 44.3 45.7 Gross deferred tax assets 1,476.8 1,501.8 1,472.1 Valuation allowance (1,336.0) (1,351.5) (1,320.8) Deferred tax assets 140.8 150.3 151.3 Gross deferred tax liabilities: Acquisition-related items (29.4) (30.9) (31.9) Tax on unrepatriated earnings (9.5) (13.7) (7.2) Foreign branch taxes (14.6) (15.0) (17.8) Other (16.5) (17.7) (17.6) Deferred tax liabilities (70.0) (77.3) (74.5) Total net deferred tax assets $ 70.8 $ 73.0 $ 76.8 As of June 29, 2024, the Company had federal, state and foreign tax net operating loss carryforwards of $1,450.7 million, $358.0 million and $429.6 million, respectively, and federal and state research tax credit carryforwards of $83.3 million and $54.7 million, respectivel y. The federal tax net operating loss carryforwards start to expire in fiscal 2025 and at various dates through 2038 if not utilized. The federal research credit carryforwards start to expire fiscal 2025 and at various dates through fiscal 2044 if not utilized. The state tax net operating loss carryforwards start to expire in fiscal 2025 and at various dates through 2044 if not utilized. Th e state research credit start to expire in fiscal 2025 but a majority of the state credits have an indefinite carryforward period. In addition, a portion of the foreign tax net operating loss and capital loss carryforwards have an indefinite carryforward period. Utilization of the tax net operating losses may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state and foreign provisions. Loss carryforward limitations may result in the expiration or reduced utilization of a portion of the Company’s net operating losses. During fiscal 2024, the Company completed a series of planned internal transactions between subsidiaries within the group to optimize our ability to repatriate earnings back to the U.S. As a result of these transactions, the Company is able to reduce the amount of withholding tax that will be accrued on current and future earnings. The tax expense of these transactions was approximately $1.2 million. During fiscal 2022, the Company completed a planned internal transaction moving certain of VIAVI’s intellectual properties out of a foreign jurisdiction where tax rates are scheduled to increase to the U.S. entity established in fiscal 2021 to own and manage VIAVI’s other intellectual properties. The Company recorded foreign tax expense of $13.2 million related to this transaction. Foreign withholdi ng taxes associated with the repatriation of earnings of foreign subsidiaries have not been provided on $15.3 million of undistributed earnings for certain foreign subsidiaries. The Company intends to reinvest these earnings indefinitely outside of the United States. The Company estimates that an additional $1.4 million of foreign withholding taxes would have to be provided if these earnings were repatriated back to the U.S. The valuation allowance decreased by $15.5 million in fiscal 2024, increased by $30.7 million in fiscal 2023, and increased by $11.9 million in fiscal 2022. The decrease during fiscal 2024 was primarily due to the amortization of intangibles assets, utilization of federal net operating losses (NOLs) offset by an increase in the capitalization of federal research expenditures in the U.S. The increase during fiscal 2023 was primarily due to the increase in capitalization of federal research expenditures in the U.S. This includes the effects of the mandatory capitalization and amortization of R&D expenses incurred in fiscal 2023, as required by the 2017 Tax Cuts and Jobs Act (Tax Act) . The increase during fiscal 2022 was primarily due to the increase in capitalization of federal research expenditures in the U.S. The following table provides information about the activity of our deferred tax valuation allowance (in millions) : Deferred Tax Valuation Allowance Balance at Additions Charged to Expenses or Other Accounts (1) Deductions Credited to Expenses or Other Accounts (2) Balance at Year Ended June 29, 2024 $ 1,351.5 $ 132.7 $ (148.2) $ 1,336.0 Year Ended July 1, 2023 $ 1,320.8 $ 114.4 $ (83.7) $ 1,351.5 Year Ended July 2, 2022 $ 1,308.9 $ 101.7 $ (89.8) $ 1,320.8 (1) Additions include current year additions charged to expenses and current year build due to increases in net deferred tax assets, return to provision true-ups, and other adjustments. (2) Deductions include current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets, return to provision true-ups, other adjustments and increases in deferred tax liabilities. A reconciliation of unrecognized tax benefits between July 3, 2021 and June 29, 2024 is as follows ( in millions ): Balance at July 3, 2021 $ 59.1 Additions based on tax positions related to current year 0.4 Additions based on tax positions related to prior year 2.6 Reduction based on tax positions related to prior year (2.6) Reductions for lapse of statute of limitations (6.1) Balance at July 2, 2022 53.4 Additions based on tax positions related to current year 2.7 Addition based on tax positions related to prior year 0.1 Reduction based on tax positions related to prior year (1.1) Reductions for lapse of statute of limitations (0.2) Balance at July1, 2023 54.9 Additions based on tax positions related to current year 1.2 Addition based on tax positions related to prior year 0.5 Reduction based on tax positions related to prior year (1.9) Reductions for lapse of statute of limitations (0.2) Balance at June 29, 2024 $ 54.5 The unrecognized tax benefits relate primarily to the allocations of revenue and costs among the Company’s global operations and the validity of some U.S. tax credits. Included in the balance of unrecognized tax benefits at June 29, 2024 are $13.2 million of tax benefits that, if recognized, would impact the effective tax rate. Also included in the balance of unrecognized tax benefits at June 29, 2024 are $37.6 million of tax benefits that, if recognized, would result in adjustments to the valuation allowance. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits within th e income tax provisio n. The amount of interest and penalties accrued as of June 29, 2024, July 1, 2023 and July 2, 2022 was approximately $3.8 million, $2.9 million, and $2.1 million, respectively. T he 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. The Company is routinely subject to various federal, state and foreign audits by taxing authorities. The Company believes that adequate amounts have been provided for any adjustments that may result from these examinations. The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by such jurisdictions as of June 29, 2024: Tax Jurisdictions Tax Years United States (1) 2005 and onward Canada 2022 and onward China 2019 and onward France 2021 and onward Germany 2018 and onward Korea 2019 and onward United Kingdom 2023 and onward (1) Although the Company is generally subject to a three-year statute of limitations in the U.S., tax authorities maintain the ability to adjust tax attribute carryforwards generated in earlier years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 29, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 15. Stockholders' Equity Repurchase of Common Stock In September 2022, the Board of Directors authorized a new stock repurchase plan (2022 Repurchase Plan) of up to $300 million effective October 1, 2022 which remains in effect until the amount authorized has been fully repurchased or until suspension or termination of the program. Under the 2022 Repurchase Plan, the Company is authorized to repurchase shares through a variety of methods, including open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans. The timing of repurchases under the plan will depend upon business and financial market conditions. During fiscal 2024, the Company repurchased 2.3 million shares of its common stock for $20.0 million under the 2022 Repurchase Plan. As of June 29, 2024, the Company had remaining authorization of $214.8 million for future share repurchases under the 2022 Repurchase Plan. The following table summarizes share repurchase activity related to the Company’s stock repurchase program (in millions, except average price per share amounts) : Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Total number of shares repurchased 2.3 7.3 14.8 Average price per share $ 8.70 $ 11.49 $ 15.91 Total purchase price $ 20.0 $ 83.9 $ 235.5 Remaining authorization at end of period $ 214.8 $ 234.8 $ 67.3 The total purchase price of these repurchases was reflected as a decrease to common stock based on the stated par value per share with the remainder charged to accumulated deficit. All common shares repurchased during fiscal 2024, 2023 and 2022 have been canceled and retired. On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was enacted into law. The Company evaluated the provisions of the new legislation, which included an excise tax on share repurchases. The IRA was effective as of January 1, 2023 and repurchase activity after that date resulted in an accrual of $0.3 million for excise tax recorded in Accrued expenses on the Consolidated Balance Sheets. Preferred Stock The Company’s Board of Directors has authority to issue up to 1,000,000 shares of undesignated preferred stock and to determine the powers, preferences and rights and the qualifications, limitations or restrictions granted to or imposed upon any wholly unissued shares of undesignated preferred stock and to fix the number of shares constituting any series and the designation of such series, without the consent of the Company’s stockholders. The preferred stock could be issued with voting, liquidation, dividend and other rights superior to those of the holders of common stock. Subsequent issuance of any preferred stock by the Company’s Board of Directors, under some circumstances, could have the effect of delaying, deferring or preventing a change in control. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 16. Stock-Based Compensation Stock-Based Benefit Plans Stock Award Plans The Company’s Amended and Restated 2003 Plan provides for the granting of stock options, stock appreciation rights (SARs), dividend equivalent rights, restricted stocks, restricted stock units, performance units and performance shares, the vesting of which may be time-based or upon satisfaction of performance criteria or other conditions. As of June 29, 2024, the Company had 9.1 million shares subject to Full Value Awards (defined below) issued and outstanding and 13.1 million shares of common stock available for grant under the Amended and Restated 2003 Plan. Employee Stock Purchase Plans The Company’s ESPP provides eligible employees with the opportunity to acquire an ownership interest in the Company through periodic payroll deductions and provides a discounted purchase price as well as a look-back period. The ESPP is structured as a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986. As of June 29, 2024, 6.8 million shares remained available for issuance. The ESPP as amended provides for a 15% discount with a look-back period of six months. Full Value Awards The Company's stock-based compensation includes a combination of time-based RSUs and performance- based MSUs and PSUs. RSUs are granted without an exercise price and are converted to shares immediately upon vesting. 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. For performance-based awards, shares attained over target upon vesting are reflected as awards granted during the period. Time-based RSU awards will generally vest in annual installments over a period of three one Stock-Based Compensation The impact on the Company’s results of operations of recording stock-based compensation expense by function for fiscal 2024, 2023 and 2022 was as follows ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Cost of revenue $ 4.9 $ 4.8 $ 5.2 Research and development 8.7 8.6 8.6 Selling, general and administrative 35.8 37.8 38.5 Total stock-based compensation expense $ 49.4 $ 51.2 $ 52.3 Approximately $1.2 million of stock-based compensation expense was capitalized to inventory at June 29, 2024 and July 1, 2023. Stock Option Activity During fiscal 2024, 1.2 million of stock options were exercised all of which have been fully amortized and recognized since before June 29, 2019. There were no stock options outstanding as of June 29, 2024. Employee Stock Purchase Plan Activity The expense related to the ESPP is recorded on a straight-line basis over the relevant subscription period. During fiscal 2024, the Company issued shares of 400,381 and 324,219 on January 31, 2024 and July 31, 2023, respectively, as part of the ESPP. As of June 29, 2024, there was $0.2 million of unrecognized stock-based compensation cost related to the ESPP that remains to be amortized. The cost will be recognized in the first quarter of fiscal 2025. Full Value Awards Activity A summary of the status of the Company’s non-vested Full Value Awards as of June 29, 2024 and changes during fiscal years 2022, 2023 and 2024 are presented below ( in millions, except Weighted-Average Grant Date Fair Value per share amounts ): Full Value Awards Performance Shares (1) Non-Performance Shares Total Number of Shares Weighted-Average Grant Date Fair Value Per Share Non-vested July 3, 2021 1.5 4.8 6.3 $ 13.98 Awards granted 0.4 2.4 2.8 $ 16.95 Awards vested (0.4) (2.2) (2.6) $ 13.38 Awards forfeited (0.1) (0.2) (0.3) $ 14.64 Non-vested July 2, 2022 1.4 4.8 6.2 $ 15.55 Awards granted 0.9 3.1 4.0 $ 14.35 Awards vested (0.6) (1.8) (2.4) $ 15.23 Awards forfeited — (0.3) (0.3) $ 14.78 Non-vested July 1, 2023 1.7 5.8 7.5 $ 15.06 Awards granted 1.2 3.6 4.8 $ 10.28 Awards vested (0.5) (2.2) (2.7) $ 14.96 Awards forfeited (0.2) (0.3) (0.5) $ 15.55 Non-vested June 29, 2024 2.2 6.9 9.1 $ 12.51 (1) Performance Shares refer to the Company’s MSU and PSU awards, where the actual number of shares awarded upon vesting may be higher or lower than the target amount depending on the achievement of the relevant market conditions and performance goal achievement. The majority of MSUs vest in equal annual installments over three As of June 29, 2024, $54.9 million of unrecognized stock-based compensation cost related to Full Value Awards remains to be amortized. That cost is expected to be recognized over the remaining amortization period of 1.5 years. Valuation Assumptions The Company estimates the fair value of time-based RSU awards based on the closing market price of the Company’s common stock on the date of grant. In the case of PSUs that are performance-based awards without a market condition, the Company will estimate the fair value of the awards using a probability weighted model. In the case of MSUs or PSUs, that are performance-based awards and include a market condition, the Company will estimate the fair value of the awards using a combination of the closing market price of the Company’s common stock on the grant date and the Monte Carlo simulation model.The weighted-average assumptions used to measure fair value of performance-based awards with a market condition were as follows: Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Volatility of common stock 34.8 % 31.2 % 33.8 % Average volatility of peer companies 65.8 % 62.1 % 58.7 % Average correlation coefficient of peer companies 0.2305 0.3111 0.3442 Risk-free interest rate 4.9 % 3.4 % 0.2 % The Company did not issue stock option grants during the fiscal years ended June 29, 2024, July 1, 2023 and July 2, 2022. The Company estimates the fair value ESPP purchase rights using a BSM valuation model. The fair value is estimated on the date of grant using the BSM option valuation model with the following weighted-average assumptions: Employee Stock Purchase Plans June 29, 2024 July 1, 2023 July 2, 2022 Expected term (in years) 0.5 0.5 0.5 Expected volatility 29.8 % 37.2 % 24.3 % Risk-free interest rate 5.3 % 3.8 % 0.3 % Expected Term: The Company’s purchase right period is six months under the ESPP. Expected Volatility: The expected volatility for ESPP purchase rights was based on the historical volatility of its stock price with a similar expected term. Risk-Free Interest Rate: The Company bases the risk-free interest rate used in the BSM valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. Expected Dividend: The BSM valuation model calls for a single expected dividend yield as an input. The Company has not paid and does not anticipate paying any dividends in the near future. |
Employee Pension and Other Bene
Employee Pension and Other Benefit Plans | 12 Months Ended |
Jun. 29, 2024 | |
Retirement Benefits [Abstract] | |
Employee Pension and Other Benefit Plans | Note 17. Employee Pension and Other Benefit Plans Employee 401(k) Plans The Company sponsors the Viavi Solutions 401(k) Plan (the 401(k) Plan), a defined contribution plan under ERISA, which provides retirement benefits for its eligible employees through tax deferred salary deductions. The 401(k) Plan allows employees to contribute up to 50% of their annual compensation, with contributions limited to $23,000 in calendar year 2024 as set by the Internal Revenue Service. For all eligible employees, the Company offers a 401(k) Plan that provides a 100% match of employees’ contributions up to the first 3% of annual compensation and 50% match on the next 2% of compensation. All matching contributions are made in cash and vest immediately. The Company’s matching contributions to the 401(k) Plan were $5.3 million, $5.4 million and $5.1 million in fiscal 2024, 2023 and 2022, respectively. Employee Defined Benefit Plans The Company is responsible for a non-pension post-retirement benefit obligation assumed from a past acquisition, which is closed to new participants. As of June 29, 2024 and July 1, 2023, the liability balances related to the non-pension post-retirement benefit plan were $0.3 million and $0.4 million, respectively. The liability balances were included in Other non-current liabilities on the Consolidated Balance Sheets. The Company sponsors significant qualified and non-qualified pension plans for certain past and present employees in the U.K. and Germany including the plan assumed in a prior acquisition. Most of these pension plans have been closed to new participants and no additional service costs are being accrued, except for certain plans in Germany assumed in connection with an acquisition during fiscal 2010. Benefits are generally based upon years of service and compensation or stated amounts for each year of service. As of June 29, 2024, the U.K. plan was fully 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. Future estimated benefit payments are summarized under the Future Benefit Payments section below. No other required contributions are expected in fiscal 2025, but the Company, at its discretion, can make contributions to one or more of the defined benefit plans. In July 2024, the U.K. Court of Appeal upheld a ruling in the matter of Virgin Media Limited v NTL Pension Trustees II Limited, a decision that VIAVI was not a party to or involved in, that certain historical amendments for contracted out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation. The Company and its U.K. pension scheme trustee are reviewing this development and considering whether this decision has any implications for its U.K. plan. The Company accounts for its obligations under these pension plans in accordance with the authoritative guidance which requires the Company to record its obligation to the participants, as well as the corresponding net periodic cost. The Company determines its obligation to the participants and its net periodic cost principally using actuarial valuations provided by third-party actuaries. The obligation the Company records on its Consolidated Balance Sheets is reflective of the total PBO and the fair value of plan assets. The following table presents the components of the net periodic benefit cost for the pension and benefits plans ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Service cost $ — $ — $ 0.2 Interest cost 3.3 2.7 1.6 Expected return on plan assets (1.9) (1.7) (1.7) Recognized net actuarial losses (gains) 0.1 (0.1) 2.9 Net periodic benefit cost $ 1.5 $ 0.9 $ 3.0 The Company’s accumulated other comprehensive (loss) income includes unrealized net actuarial losses (gains). The amount of unrealized net actuarial loss (gain) expected to be recognized in net periodic benefit cost during fiscal 2025 is $0.2 million. The changes in the benefit obligations and plan assets of the pension and benefits plans were ( in millions ): Pension Benefit Plans June 29, 2024 July 1, 2023 Change in benefit obligation Benefit obligation at beginning of year $ 86.1 $ 95.5 Interest cost 3.3 2.7 Actuarial losses (gains) 1.5 (4.2) Benefits paid (6.1) (5.6) Foreign exchange impact (1.1) (2.3) Benefit obligation at end of year $ 83.7 $ 86.1 Change in plan assets Fair value of plan assets at beginning of year $ 31.1 $ 29.3 Actual return on plan assets 0.7 0.2 Employer contributions 6.5 5.6 Benefits paid (6.1) (5.6) Foreign exchange impact (0.2) 1.6 Fair value of plan assets at end of year 32.0 31.1 Funded status (51.7) (55.0) Accumulated benefit obligation $ 83.7 $ 86.1 Pension Benefit Plans June 29, 2024 July 1, 2023 Amount recognized on the Consolidated Balance Sheets at end of year: Non-current assets $ 6.6 $ 5.6 Current liabilities 7.5 7.8 Non-current liabilities 50.8 52.8 Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income: Net actuarial (loss) gain $ (2.1) $ 2.0 Amortization of accumulated net actuarial losses (gains) 0.1 (0.1) Total recognized in other comprehensive (loss) income $ (2.0) $ 1.9 During fiscal 2024, the Company contributed £1.0 million or approximately $1.3 million, while in fiscal 2023, the Company contributed £1.0 million or approximately $1.2 million to its U.K. pension plan. These contributions allowed the Company to comply with regulatory funding requirements. Assumptions Underlying both the calculation of the PBO and net periodic cost are 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 discount rate reflects the estimated rate at which the pension benefits could be effectively settled. In developing the discount rate, the Company considered the yield available on an appropriate AA corporate bond index, adjusted to reflect the term of the scheme’s liabilities as well as a yield curve model developed by the Company’s actuaries. The expected return on assets was estimated by using the weighted average of the real expected long-term return (net of inflation) on the relevant classes of assets based on the target asset mix and adding the chosen inflation assumption. The following table summarizes the weighted average assumptions used to determine net periodic cost and benefit obligation for the Company’s U.K. and German pension plans: Pension Benefit Plans June 29, 2024 July 1, 2023 July 2, 2022 Used to determine net periodic cost at end of year: Discount rate 4.1 % 4.1 % 3.2 % Expected long-term return on plan assets 5.9 % 5.9 % 6.2 % Rate of pension increase 2.5 % 2.5 % 2.2 % Used to determine benefit obligation at end of year: Discount rate 4.1 % 4.1 % 3.2 % Rate of pension increase 2.5 % 2.5 % 2.2 % Investment Policies and Strategies The Company’s investment objectives for its funded pension plan are to ensure that there are sufficient assets available to pay out members’ benefits as and when they arise and that, should the plan be discontinued at any point in time, there would be sufficient assets to meet the discontinuance liabilities. To achieve these objectives, the trustee of the U.K. pension plan is responsible for regularly monitoring the funding position and managing the risk by investing in assets expected to outperform the increase in value of the liabilities in the long term and by investing in a diversified portfolio of assets in order to minimize volatility in the funding position. The trustee invests in a range of frequently traded funds (pooled funds) rather than direct holdings in individual securities to maintain liquidity, achieve diversification and reduce the potential for risk concentration. The funded plan assets are managed by professional third-party investment managers. Fair Value Measurement of Plan Assets The following table sets forth the plan assets at fair value and the percentage of assets allocations as of June 29, 2024 ( in millions ): Fair value as of June 29, 2024 Target Allocation Total Percentage of Plan Assets Level 1 Level 2 Assets: Equity / Other 40 % $ 12.1 37.8 % $ — $ 12.1 Fixed income 60 % 17.0 53.1 % — 17.0 Cash — % 2.9 9.1 % 2.9 — Total assets $ 32.0 100.0 % $ 2.9 $ 29.1 The following table sets forth the plan’s assets at fair value and the percentage of assets allocations as of July 1, 2023 ( in millions ): Fair value as of July 1, 2023 Target Allocation Total Percentage of Plan Assets Level 1 Level 2 Assets: Equity / Other 60 % $ 18.4 59.2 % $ — $ 18.4 Fixed income 40 % 10.0 32.1 % — 10.0 Cash — % 2.7 8.7 % 2.7 — Total assets $ 31.1 100.0 % $ 2.7 $ 28.4 The Company’s pension assets consist of multiple institutional funds (pension funds) of which the fair values are based on the quoted prices of the underlying funds. Pension funds are classified as Level 2 assets since such funds are not directly traded in active markets. Equity / Other consists of several funds that invest primarily in U.K. equities and other overseas equities as well as a small portion in liquid alternatives. Fixed income consists of several funds that invest primarily in index-linked Gilts (over 5 year), sterling-denominated investment grade corporate bonds and overseas government bonds. Future Benefit Payments The following table reflects the expected benefit payments to defined benefit pension plan participants. These payments have been estimated based on the same assumptions used to measure the Company’s PBO at fiscal year end and include benefits attributable to estimated future compensation increases ( in millions ): Fiscal Years 2025 $ 8.5 2026 6.0 2027 5.9 2028 5.2 2029 5.0 2030-2034 23.1 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18. Commitments and Contingencies Royalty Payments The Company is obligated to make future minimum royalty payments of $0.8 million measured as of June 29, 2024 for the use of certain licensed technologies. Future minimum payments are expected to be paid through the third quarter of fiscal 2026, as follows ( in millions): Fiscal Years 2025 $ 0.6 2026 0.2 Total $ 0.8 Purchase Obligations Purchase obligations of $101.1 million as of June 29, 2024, represent legally-binding commitments to purchase inventory and other commitments made in the normal course of business to meet operational requirements. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the option to cancel, reschedule and adjust the requirements based on the Company’s business needs prior to the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year. The Company depends on a limited number of contract manufacturers, subcontractors, and suppliers for raw materials, packages and standard components. The Company generally purchases these single or limited source products through standard purchase orders or one-year supply agreements and has no significant long-term guaranteed supply agreements with such vendors. While the Company seeks to maintain a sufficient safety stock of such products and maintains on-going communications with its suppliers to guard against interruptions or cessation of supply, the Company’s business and results of operations could be adversely affected by a stoppage or delay of supply, substitution of more expensive or less reliable products, receipt of defective parts or contaminated materials, increases in the price of such supplies, or the Company’s inability to obtain reduced pricing from its suppliers in response to competitive pressures. Financing Obligations On August 21, 2007, the Company entered into a sale and lease-back of certain buildings and land in Santa Rosa, California (the Santa Rosa Transactions), under which we leased back certain buildings. The net cash proceeds received from the transaction were $32.2 million. The lease terms range from a one-year lease with multiple renewal options to a ten-year lease with two five-year renewal options. These buildings did not qualify for sale and lease back accounting due to various forms of continuing involvement and, as a result, they were accounted for as financing transactions. In August 2012 and May 2019, the Company entered into two lease amendments to extend the term of the lease to August 31, 2032 with a ten-year renewal option. In the first quarter of fiscal 2020, the Company reassessed whether a sale would have occurred on the date of adoption of ASC 842 and, at which time, concluded that the buildings did not qualify for sale and lease back accounting in accordance with ASC 842. As a result, they were continuously accounted for as financing transactions. As of June 29, 2024, $0.1 million was included in Other current liabilities Other non-current liabilities Other current liabilities Other non-current liabilities As of June 29, 2024, future minimum annual lease payments of Santa Rosa’s non-cancelable leaseback agreements were as follows (in millions) : Fiscal Years 2025 $ 3.1 2026 3.1 2027 3.2 2028 2.7 2029 2.6 Thereafter 8.3 Total minimum leaseback payments $ 23.0 Guarantees Authoritative guidance requires upon issuance of a guarantee the guarantor must recognize a liability for the fair value of the obligation that it assumes under the 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 June 29, 2024 and July 1, 2023. Outstanding Standby Letters of Credit and Performance Bonds As of June 29, 2024, the Company had standby letters of credit of $8.6 million, and other claims of $1.9 million collateralized by restricted cash. Product Warranties The Company provides reserves for the estimated costs of product warranties at the time revenue is recognized. Prior to January 1, 2023 the Company offered its customers warranties up to three years for most of its products. On January 1, 2023, the Company changed the standard warranty for most of its products to one year. The Company estimates the costs of its warranty obligations based on its historical experience of known product failure rates, use of materials to repair or replace defective products and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The following table presents the changes in the Company’s warranty reserve during fiscal 2024 and 2023 ( in millions ): Year Ended June 29, 2024 July 1, 2023 Balance as of beginning of period $ 9.0 $ 10.6 Provision for warranty 1.2 1.6 Utilization of reserve (2.8) (1.2) Adjustments related to pre-existing warranties (including changes in estimates) — (2.0) Balance as of end of period $ 7.4 $ 9.0 Legal Proceedings Tel-Instruments Electronics Corp. Settlement In July 2023, the Court of Appeals in the State of Kansas affirmed a lower court decision in a case filed by Aeroflex Wichita (Aeroflex), a VIAVI subsidiary, against Tel-Instrument Electronics Corp. (TIC) and two of its employees with total damages of $7.3 million owed to VIAVI. The lower court case, filed by Aeroflex prior to the acquisition by VIAVI and affirmed by the Kansas Court of Appeals, awarded damages caused by tortious interference and improper use and disclosure of Aeroflex’s confidential and proprietary business information used by the defendants to win a competitive U.S. Army contract. TIC did not file a petition to appeal the decision and acknowledged its obligation to pay damages in full. VIAVI subsequently received total payments of $7.3 million from TIC and the two former employees and recorded a gain to Interest and other income, net in the Consolidated Statements of Operations for the year ended June 29, 2024. U.K. Pension Settlement 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 £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 Company pursued an appeal of the court decision. In March 2018, the appellate court affirmed the decision of the lower court. The Company pursued a motion for summary judgement on the deed of rectification claim. As of July 2, 2022, the related accrued pension liability of £5.4 million or $6.5 million was included in pension and post-employment benefits within Other non-current liabilities on the Consolidated Balance Sheets. In September 2022, the Company received a favorable court decision, which removed completely and definitively the obligation to fund the increased pension benefit with retrospective effect to 1999. As a result of the judgment, and in accordance with authoritative guidance on contingencies, the Company reversed the liability and recorded a gain (reduction to SG&A expense in the Consolidated Statements of Operations) of £5.7 million or $6.7 million during fiscal 2023. The Company is subject to a variety of claims and suits that arise from time to time in the ordinary course of its 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. |
Operating Segments and Geograph
Operating Segments and Geographic Information | 12 Months Ended |
Jun. 29, 2024 | |
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 CODM uses operating segment financial information to evaluate segment performance and to allocate resources. The Company’s reportable segments are: (i) Network Enablement: NE provides an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. These solutions include instruments, software and services to design, build, turn-up, certify, troubleshoot and optimize networks. NE also offers a range of product support and professional services such as repair, calibration, software support and technical assistance for its products. NE’s avionics products provide test and measuring solutions for aviation, aerospace, government, defense, communications and public safety. (ii) Service Enablement: SE provides embedded systems and enterprise performance management solutions that give global communications service providers, enterprises and cloud operators visibility into network, service and application 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 leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell technologies for the anti-counterfeiting, consumer electronics, industrial, government and automotive markets. Segment Reporting 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, impairment of goodwill, non-operating income and expenses, changes in fair value of contingent consideration liabilities, or other charges unrelated to core operating performance to its segments because management does not include this information in its measurement of the performance of the operating segments. These items are presented as “Other Items” in the table below. Additionally, the Company does not specifically identify and allocate all assets by operating segment. Information on the Company’s reportable segments is as follows ( in millions ): Year Ended June 29, 2024 Network and Service Enablement Network Enablement Service Enablement Network and Optical Security and Performance Products Other Items (1) Consolidated GAAP Measures Product revenue $ 499.1 $ 37.3 $ 536.4 $ 298.4 $ — $ 834.8 Service revenue 116.6 49.0 165.6 — — 165.6 Net revenue $ 615.7 $ 86.3 $ 702.0 $ 298.4 $ — $ 1,000.4 Gross profit $ 382.3 $ 57.3 $ 439.6 $ 154.9 $ (18.6) $ 575.9 Gross margin 62.1 % 66.4 % 62.6 % 51.9 % 57.6 % Operating income $ 8.0 $ 107.0 $ (94.2) $ 20.8 Operating margin 1.1 % 35.9 % 2.1 % Year Ended July 1, 2023 Network and Service Enablement Network Enablement Service Enablement Network and Optical Security and Performance Products Other Items (1) Consolidated GAAP Measures Product revenue $ 588.1 $ 43.2 $ 631.3 $ 304.8 $ — $ 936.1 Service revenue 119.1 50.8 169.9 0.1 — 170.0 Net revenue $ 707.2 $ 94.0 $ 801.2 $ 304.9 $ — $ 1,106.1 Gross profit $ 447.6 $ 62.6 $ 510.2 $ 158.6 $ (30.0) $ 638.8 Gross margin 63.3 % 66.6 % 63.7 % 52.0 % 57.8 % Operating income $ 61.2 $ 111.3 $ (90.1) $ 82.4 Operating margin 7.6 % 36.5 % 7.4 % Year Ended July 2, 2022 Network and Service Enablement Network Enablement Service Enablement Network and Optical Security and Performance Products Other Items (1) Consolidated GAAP Measures Product revenue $ 745.1 $ 47.6 $ 792.7 $ 342.8 $ — $ 1,135.5 Service revenue 110.6 45.8 156.4 0.5 — 156.9 Net revenue $ 855.7 $ 93.4 $ 949.1 $ 343.3 $ — $ 1,292.4 Gross profit $ 550.8 $ 64.3 $ 615.1 $ 193.6 $ (35.2) $ 773.5 Gross margin 64.4 % 68.8 % 64.8 % 56.4 % 59.8 % Operating income $ 147.8 $ 139.0 $ (101.8) $ 185.0 Operating margin 15.6 % 40.5 % 14.3 % (1) See below tables for details of reconciling items impacting gross profit and operating income. Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Corporate reconciling items impacting gross profit: Total segment gross profit $ 594.5 $ 668.8 $ 808.7 Stock-based compensation (4.9) (4.8) (5.2) Amortization of intangibles (13.8) (24.6) (30.0) Other benefits (charges) unrelated to core operating performance (1) 0.1 (0.6) — Total reconciling items (18.6) (30.0) (35.2) GAAP gross profit $ 575.9 $ 638.8 $ 773.5 Corporate reconciling items impacting operating income: Total segment operating income $ 115.0 $ 172.5 $ 286.8 Stock-based compensation (49.4) (51.2) (52.3) Amortization of intangibles (20.1) (33.3) (39.7) Change in fair value of contingent liability 9.5 4.6 (0.3) Other (charges) benefits unrelated to core operating performance (1) (20.6) 1.9 (9.6) Restructuring and related (charges) benefits (13.6) (12.1) 0.1 Total reconciling items (94.2) (90.1) (101.8) GAAP operating income $ 20.8 $ 82.4 $ 185.0 (1) For the year ended June 29, 2024, Other charges (benefits) unrelated to core operating performance consisted of $18.1 million of certain acquisition and integration related charges and $2.5 million of net losses primarily related to long-lived assets. For the year ended July 1, 2023, Other charges (benefits) unrelated to core operating performance consisted of a $6.7 million gain on litigation settlement, offset by $2.5 million of certain acquisition and integration related charges and $2.3 million of net losses primarily related to long-lived assets. For the year ended July 2, 2022, Other charges (benefits) unrelated to core operating performance consisted of $5.1 million of certain acquisition and integration related charges and $4.5 million of net losses primarily related to 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 the Company’s product is initially shipped. For example, certain customers may request shipment of the Company’s 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 in which the Company operates and net revenue from countries that exceeded 10% of the Company’s total net revenue for the years ended June 29, 2024, July 1, 2023 and July 2, 2022 ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Product Revenue Service Revenue Total Product Revenue Service Revenue Total Product Revenue Service Revenue Total Americas: United States $ 265.0 $ 60.4 $ 325.4 $ 303.5 $ 59.4 $ 362.9 $ 332.5 $ 56.4 $ 388.9 Other Americas 50.3 15.0 65.3 60.3 14.9 75.2 82.2 14.6 96.8 Total Americas $ 315.3 $ 75.4 $ 390.7 $ 363.8 $ 74.3 $ 438.1 $ 414.7 $ 71.0 $ 485.7 Asia-Pacific: Greater China $ 188.1 $ 5.9 $ 194.0 $ 203.5 $ 7.4 $ 210.9 $ 247.5 $ 8.9 $ 256.4 Other Asia 126.5 26.0 152.5 140.2 26.4 166.6 185.2 20.1 205.3 Total Asia-Pacific $ 314.6 $ 31.9 $ 346.5 $ 343.7 $ 33.8 $ 377.5 $ 432.7 $ 29.0 $ 461.7 EMEA: $ 204.9 $ 58.3 $ 263.2 $ 228.6 $ 61.9 $ 290.5 $ 288.1 $ 56.9 $ 345.0 Total net revenue $ 834.8 $ 165.6 $ 1,000.4 $ 936.1 $ 170.0 $ 1,106.1 $ 1,135.5 $ 156.9 $ 1,292.4 One customer of the Company generated $154.1 million, $157.7 million and $178.4 million of net revenue, which represented more than 10% of total net revenue, during fiscal 2024, 2023 and 2022, respectively. Property, plant and equipment, net was identified based on the operations in the corresponding geographic areas ( in millions ): Years Ended June 29, 2024 July 1, 2023 United States $ 165.0 $ 166.9 Other Americas 1.1 1.3 China 24.1 33.6 Other Asia-Pacific 5.1 4.0 United Kingdom 20.3 24.6 Other EMEA 12.6 12.6 Total property, plant and equipment, net $ 228.2 $ 243.0 |
Government Assistance
Government Assistance | 12 Months Ended |
Jun. 29, 2024 | |
Government Assistance [Abstract] | |
Government Assistance | Government Assistance VALOR Grant In the third quarter of fiscal 2024, the U.S. National Telecommunications and Information Administration (NTIA) awarded VIAVI a grant from the Public Wireless Supply Chain Innovation Fund. The grant is expected to provide approximately $21.7 million in funding over a three-year performance period for the VIAVI Automated Lab-as-a-Service for Open RAN (VALOR). During the three-year performance period, VIAVI will be required to spend $5.8 million, consisting of $4.0 million for software license fees and $1.8 million for management/administrative fees to operate the lab. The Company recorded $1.6 million in the form of R&D credits in the Consolidated Statements of Operations during fiscal 2024 under the VALOR Grant. In addition, funding of $1.3 million offset the carrying value of lab equipment purchased as of June 29, 2024. For the year ended June 29, 2024, we received cash reimbursement of $0.3 million and had pending receipts of $2.6 million included in Prepayments and other current assets on the Consolidated Balance Sheets. Other Government Assistance The Company recorded approximately $5.3 million in the form of R&D credits Prepayments and other current assets |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Pay vs Performance Disclosure | |||
Net (loss) income | $ (25.8) | $ 25.5 | $ 15.5 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Jun. 29, 2024 shares | Jun. 29, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Ralph Rondinone [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 14, 2024, Ralph Rondinone, Senior Vice President, Global Operations of VIAVI, entered into a prearranged trading plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of an indeterminable number of shares of common stock. Mr. Rondinone’s plan begins on May 14, 2024, and expires when all of the shares are sold or on February 6, 2026, whichever occurs first. The earliest date that sales could occur under this plan is August 13, 2024. | |
Name | Ralph Rondinone | |
Title | Senior Vice President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 14, 2024 | |
Expiration Date | February 6, 2026 | |
Arrangement Duration | 542 days | |
Masood Jabbar [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 15, 2024, Masood Jabbar, Director of VIAVI, entered into a prearranged trading plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 120,000 shares of common stock. Mr Jabbar’s plan begins on May 15, 2024, and expires when all of the shares are sold or on January 21, 2025, whichever occurs first. The earliest date that sales could occur under this plan is August 14, 2024. | |
Name | Masood Jabbar | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 15, 2024 | |
Expiration Date | January 21, 2025 | |
Arrangement Duration | 160 days | |
Aggregate Available | 120,000 | 120,000 |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Jun. 29, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Jun. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Years | Fiscal Years |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. |
Reclassification of Prior Period Balances | Reclassification of Prior Period Balances |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash |
Investments | Investments The Company’s investments in debt securities are classified as available for sale investments, recorded at fair value. The cost of securities sold is based on the specific identified method. Unrealized gains and losses resulting from changes in fair value on available-for-sale investments, net of tax, are reported as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. The Company periodically reviews investments in debt securities for impairment. If a debt security’s fair value is below amortized cost and the Company either intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to current earnings for the entire amount of the impairment. If a debt security’s fair value is below amortized cost and the Company does not expect to recover the entire amortized cost of the security, the Company separates the other-than-temporary impairment into: (i) the portion of the loss related to credit factors, or the credit loss portion; and, (ii) the portion of the loss that is not related to credit factors, or the non-credit loss portion. The credit loss portion is recorded as an allowance to credit loss through Interest and other income, net, in the Consolidated Statements of Operations and the non-credit loss portion is recorded as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. The Company’s investments also include fixed term deposits with interest earned recorded as a component of Interest and other income, net, in the Consolidated Statements of Operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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 three levels of inputs that may be used to measure fair value are: • 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 include asset-backed securities, foreign currency forward contracts and debt. 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 June 29, 2024 and July 1, 2023, the Company did not hold any Level 3 investment securities. The Company’s Level 3 liabilities as of June 29, 2024 and July 1, 2023 consist of contingent purchase consideration liabilities related to business acquisitions. The fair value of such earn-out liabilities are generally determined using a Monte Carlo Simulation that includes significant unobservable inputs such as the risk-adjusted discount rate, gross profit volatility, and projected financial forecast of acquired business over the earn-out period. The fair value of certain earn-out liabilities is derived using the estimated probability of success of achieving the earn-out milestones discounted to present value. The fair value of contingent consideration liabilities is remeasured at each reporting period at the estimated fair value based on the inputs on the date of remeasurement, with the change in fair value recognized in the Selling, general and administrative (SG&A) expense in the Consolidated Statements of Operations. |
Inventories | Inventories |
Leases | Leases 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. If 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 right-of-use (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 on the 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. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using a straight-line method, over the estimated useful lives of the assets: building and improvements 5 to 50 years; machinery and equipment 3 to 30 years; and furniture, fixtures, software and office equipment 2 to 10 years. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the asset or the remaining lease term. Demonstration units are Company products used for demonstration purposes for existing and prospective customers and are amortized using the straight-line method. These assets are generally not intended to be sold and have an estimated useful life of 3 to 5 years. Costs related to software acquired, developed or modified solely to meet the Company’s internal requirements and for which there are no substantive plans to market are capitalized in accordance with the authoritative guidance on accounting for the costs of computer software developed or obtained for internal use. Only costs incurred after the preliminary planning stage of the project and after management has authorized and committed funds to the project are eligible for capitalization. Costs capitalized for computer software developed or obtained for internal use are included in Property, plant and equipment, net, on the Consolidated Balance Sheets. |
Business Combinations | Business Combinations The Company includes the results of operations of the businesses that it acquires from the acquisition date. In allocating the purchase price of a business combination, the Company records all assets acquired and liabilities assumed at fair value as of the date of acquisition, with the excess of the purchase price over the aggregate fair values recorded as goodwill. Additionally, any contingent consideration is recorded at fair value on the acquisition date and classified as a liability. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The fair value assigned to identifiable intangible assets acquired is based on estimates and assumptions made by management at the time of the acquisition. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing as of the acquisition date. Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price paid over the net fair value of assets acquired and liabilities assumed. The Company tests goodwill for impairment at the reporting unit level at least annually, during the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The accounting guidance provides the Company with the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit’s fair value is less than its carry amount. These events and circumstances include, macro-economic conditions, such as a significant adverse change in the Company’s operating environment, industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel, or other events, such as the sale of a reporting unit, adverse regulatory developments or a sustained decrease in the Company’s stock price. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is required. Otherwise, no further testing is required. Under the quantitative test, the Company compares the fair value of a reporting unit to its carrying value. If the estimated fair value exceeds book value, goodwill is considered not to be impaired. However, if the fair value of the reporting unit is less than book value, then goodwill will be impaired by the amount that the carrying amount exceeds the fair value, not to exceed the carrying amount of the goodwill. To estimate the fair value of each reporting unit, a combination of the income and market approach is used. The income approach uses discounted future cash flows in which sales, operating income and cash flow projections are based on assumptions driven by current economic conditions. Key assumptions used in the discounted future cash flow model include, but are not limited to, long-term annual growth rates, terminal growth rates, weighted average cost of capital and the Company’s effective tax rate. |
Intangible Assets | Intangible Assets |
Long-lived Assets | Long-lived Assets Long-lived assets, including intangible assets and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of any asset or asset group may not be recoverable. Such an evaluation is performed at the lowest identifiable level of cash flows independent of other assets. An impairment loss would be recognized when estimated undiscounted future cash flows generated from the assets are less than their carrying amount. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset or asset group over its estimated fair value. Estimates of future cash flow require significant judgment based on anticipated future operating results, which are subject to variability and change. |
Pension and Other Postretirement Benefits | Pension and Other Post-retirement Benefits The funded status of the Company’s retirement-related benefit plans is recognized on the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at fiscal year end, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the non-pension post-retirement benefit plan the benefit obligation is the accumulated post-retirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon its employees’ retirement. The APBO represents the actuarial present value of post-retirement benefits attributed to employee services already rendered. Unfunded or partially funded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a retirement and non-pension post-retirement benefit obligation equal to this excess. The current portion of the retirement-related benefit obligation represents the actuarial present value of benefits payable in the next 12 months in excess of the fair value of plan assets, measured on a plan-by-plan basis. This liability is recorded in Other current liabilities on the Consolidated Balance Sheets. Net periodic pension cost is recorded in the Consolidated Statements of Operations and includes service cost, interest cost, expected return on plan assets, amortization of prior service cost or credit, and gains or losses previously recognized as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. Service cost represents the actuarial present value of participant benefits attributed to services rendered by employees in the current year. Interest cost represents the time value of money cost associated with the passage of time. Gains or losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Prior service cost or credit represents the cost of benefit improvements attributable to prior service granted in plan amendments. Gains or losses and prior service cost or credit not recognized as a component of net periodic pension cost in the Consolidated Statements of Operations are recognized as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets, net of tax. Those gains or losses and prior service cost or credit are subsequently recognized as a component of net periodic pension cost pursuant to the recognition and amortization provisions of the authoritative guidance. The measurement of the benefit obligation and net periodic pension cost is based on the Company’s estimates and actuarial valuations provided by third-party actuaries and are approved by management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases and mortality rates. The Company evaluates these assumptions periodically but not less than annually. In estimating the expected return on plan assets, the Company considers historical returns on plan assets, diversification of plan investments, adjusted for forward-looking considerations, inflation assumptions and the impact of the active management of the plan’s invested assets. The Company measures its benefit obligation and plan assets using the month-end date of June 30, which is closest to the Company’s fiscal year-end. |
Concentration of Credit and Other Risks | Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, restricted cash, trade receivables and foreign currency forward contracts. The Company’s cash and cash equivalents and short-term investments are held in safekeeping by large, creditworthy financial institutions. The Company invests its excess cash primarily in institutional money market funds, short-term deposits and similar short duration high quality, investment grade instruments. The Company has established guidelines relative to credit ratings, diversification and maturities that seek to maintain the safety and liquidity of these investments. The Company’s foreign exchange derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreements. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading such risk across several major financial institutions. Potential risk of loss with any one counterparty resulting from such risk is monitored by the Company on an ongoing basis. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. When the Company becomes aware that a specific customer is unable to meet its financial obligations, the Company records a specific allowance to reflect the level of credit risk in the customer’s outstanding receivable balance. In addition, the Company records additional allowances based on certain percentages of aged receivable balances. These percentages consider a variety of factors including, but not limited to, current economic trends, historical payment and bad debt write-off experience. The Company classifies bad debt expenses as SG&A expense in the Consolidated Statements of Operations. The Company is not able to predict changes in the financial stability of its customers. Any material changes in the financial status of any one customer or a group of customers could have a material adverse effect on the Company’s results of operations and financial condition. Although such losses have been within management’s expectations to date, there can be no assurance that such allowances will continue to be adequate. The Company has significant trade receivables concentrated in the telecommunications industry. While the Company’s allowance for doubtful accounts balance is based on historical loss experience along with anticipated economic trends, unanticipated financial instability in the telecommunications industry could lead to higher than anticipated losses. As of June 29, 2024 and July 1, 2023, there were no customer balances that represented 10% or more of the Company’s total accounts receivable, net. During fiscal 2024, 2023 and 2022, one customer generated 10% or more of total net revenues. Refer to “Note 19. Operating Segments and Geographic Information” for more information. The Company relies on a limited number of suppliers and contract manufacturers for a number of key components and sub-assemblies contained in the Company’s products. The Company generally uses a rolling twelve-month forecast based on anticipated product orders, customer forecasts, product order history and backlog to determine its materials requirements for any one period. Lead times for the parts and components that the Company orders may vary significantly and depend on factors such as the specific supplier, contract terms and demand for a component at any given time. If the forecast does not meet actual demand, the Company may have surplus or dearth of some materials and components, as well as excess inventory purchase commitments. The Company could experience reduced or delayed product shipments or incur additional inventory write-downs and cancellation charges or penalties, which may result in increased costs and have a material adverse impact on the Company’s results of operations. |
Foreign Currency Forward Contracts | Foreign Currency Forward Contracts The Company conducts its business and sells its products to customers primarily in North America, Europe, Asia and South America. In the normal course of business, the Company’s financial position is routinely subject to market risks associated with foreign currency rate fluctuations due to balance sheet positions in foreign currencies. The Company evaluates foreign exchange risks and utilizes foreign currency forward contracts to reduce such risks, hedging the gains or losses generated by the re-measurement of significant foreign currency-denominated monetary assets and liabilities. The fair value of these contracts is reflected as other current assets or liabilities and the change in fair value of these foreign currency forward contracts is recorded as gain or loss in the Consolidated Statements of Operations as a component of Interest and other income, net. The gain or loss from the change in fair value of these foreign currency forward contracts largely offsets the change in fair value of the foreign currency denominated monetary assets or liabilities, which is also recorded as a component of Interest and other income, net in the Consolidated Statements of Operations. |
Foreign Currency Translation | Foreign Currency Translation VIAVI transacts business in various foreign currencies. In general, the functional currency of our non-US subsidiaries is the country’s local currency. Consequently, the assets and liabilities of non-U.S. subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. Income and expense accounts are translated at exchange rates from the prior month end, which are deemed to approximate the exchange rate when the income and expense is recognized. Gains and losses from re-measurement of monetary assets and liabilities that are denominated in currencies other than the respective functional currencies are included in the Consolidated Statements of Operations as a component of Interest and other income, net. |
Revenue Recognition, Disaggregation of Revenue, Shipping and Handling Costs, Deferred Revenue and Remaining Performance Obligations | Revenue Recognition The Company derives revenue from a diverse portfolio of network solutions and optical technology products and services, as follows: • Products: Network Enablement (NE) and Service Enablement (SE) products include instruments, microprobes and perpetual software licenses that support the development, production, maintenance and optimization of network systems. NE and SE are collectively referred to as Network and Service Enablement (NSE). The Company’s Optical Security and Performance (OSP) products include proprietary pigments used for optical security and optical filters used in commercial, government and 3D sensing applications. • Services: The Company also offers a range of product support and professional services, primarily in the NE and SE segments, designed to comprehensively address customer requirements. These include repair, calibration, extended warranty, software support, technical assistance, training and consulting services. Implementation services provided in conjunction with hardware or software solution projects include sale of the products along with project management, set-up and installation. Steps of revenue recognition The Company accounts for revenue in accordance with ASC 606: Revenue from Contracts with Customers , in which the following five steps are applied to recognize revenue: 1. Identify the contract with a customer: Generally, the Company considers customer purchase orders which, in some cases are governed by master sales or other purchase agreements, to be the customer contract. All of the following criteria must be met before the Company considers an agreement to qualify as a contract with a customer under the revenue standard: (i) it must be approved by all parties; (ii) each party’s rights regarding the goods and services to be transferred can be identified; (iii) the payment terms for the goods and services can be identified; (iv) the customer has the ability and intent to pay and collection of substantially all of the consideration is probable; and, (v) the agreement has commercial substance. The Company utilizes judgment to determine the customer’s ability and intent to pay, which is based upon various factors including the customer’s historical payment experience or credit and financial information and credit risk management measures implemented by the Company. 2. Identify the performance obligations in the contract: The Company assesses whether each promised good or service is distinct for the purpose of identifying the various performance obligations in each contract. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer; and, (ii) the Company's promise to transfer the good or service to the customer is separately identifiable or distinct from other promises in the contract. The Company's performance obligations consist of a variety of products and services offerings which include networking equipment; proprietary pigment, optical filters, proprietary software licenses; support and maintenance which includes software and hardware support that extends beyond the Company's standard warranties; installation, professional and implementation services, and training. Identifying and evaluating whether products and services are considered distinct performance obligations may require significant judgment particularly in NSE due to the nature of the product and service offerings. The Company may enter into contracts that involve a significant level of integration and interdependency between a software license and installation services. Judgment may be required to determine whether the software license is considered distinct in the context of the contract and accounted for separately, or not distinct in the context of the contract and accounted for together with the installation service. 3. Determine the transaction price: Transaction price reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to the customer. The Company’s contracts may include terms that could cause variability in the transaction price including rebates, sales returns, market incentives and volume discounts. Variable consideration is generally accounted for at the portfolio level and estimated based on historical information. If a contract includes a variable amount, the price adjustments are estimated at contract inception. In both cases, estimates are updated at the end of each reporting period as additional information becomes available. 4. Allocate the transaction price to performance obligations in the contract: If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Many of the Company’s contracts include multiple performance obligations with a combination of distinct products and services, maintenance and support, professional services and/or training. Contracts may also include rights or options to acquire future products and/or services, which are accounted for as separate performance obligations by the Company, only if the right or option provides the customer with a material right that it would not receive without entering into the contract. For contracts with multiple performance obligations, the Company allocates the total transaction value to each distinct performance obligation based on relative standalone selling price (SSP). Judgment is required to determine the SSP for each distinct performance obligation. The best evidence of SSP is the observable price of a good or service when the Company sells that good or service separately under similar circumstances to similar customers. If a directly observable price is not available, the SSP must be estimated based on multiple factors including, but not limited to, historical pricing practices, internal costs, and profit objectives as well as overall market conditions. 5. Recognize revenue when (or as) performance obligations are satisfied: Revenue is recognized at the point in time control is transferred to the customer. For hardware sales, transfer of control to the customer typically occurs at the point the product is shipped or delivered to the customer’s designated location. For software license sales, transfer of control to the customer typically occurs upon shipment, electronic delivery, or when the software is available for download by the customer. For sales of implementation service and solution contracts or in instances where software is sold along with essential installation services, transfer of control occurs and revenue is typically recognized upon customer acceptance. In certain instances, acceptance is deemed to have occurred if all acceptance provisions lapse, or if the Company has evidence that all acceptance provisions will be, or have been, satisfied. For fixed-price support and extended warranty contracts, or certain software arrangements which provide customers with a right to access over a discrete period, control is deemed to transfer over time and revenue is recognized on a straight-line basis over the contract term due to the stand-ready nature of the performance obligation. Revenue from hardware repairs and calibration services outside of an extended warranty or support contract is recognized at the time of completion of the related service. For other professional services or time-based labor contracts, revenue is recognized as the Company performs the services and the customers receive and/or consume the benefits. Revenue policy and practical expedients The following policy and practical expedient elections have been made by the Company under the revenue standard: • Revenue-based taxes as assessed by governmental authorities have been excluded from the measurement of transaction price. • Shipping and handling activities performed after the customer obtains control of the good are treated as activities to fulfill the promise (cost of fulfillment). Therefore, the Company does not evaluate whether the shipping and handling activities are promised services. • Incremental costs of obtaining contracts that would have been recognized within one year or less are recognized as an expense when incurred. These costs are included in SG&A expense in the Consolidated Statements of Operations. The costs of obtaining contracts where the amortization period for recognition of the expense is beyond a year are capitalized and recognized over the revenue recognition period of the original contract. • The portfolio approach is used for certain types of variable consideration for contracts with similar characteristics. The methodology is used when the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts within that portfolio. • If at contract inception, the expected period between the transfer of promised goods or services and payment is within one year or less, the Company forgoes adjustment for the impact of significant financing component for the contract. Disaggregation of Revenue The Company's revenue is presented on a disaggregated basis in the Consolidated Statements of Operations and in “Note 19. Operating Segments and Geographic Information.” This information includes a break-out of product and service revenue, revenue from reportable segments and revenue from each of the three geographic regions in which we operate. Shipping and Handling Costs The Company records costs related to shipping and handling of revenue in cost of sales for all periods presented. 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. Contract Asset balances will fluctuate based upon the timing of transfer of services, billings and customers’ acceptance of contractual milestones. Gross Receivables: Includes both billed and Unbilled Receivables/Contract Assets. As of June 29, 2024 and July 1, 2023, the Company had total Unbilled Receivables/Contract Assets of $16.3 million and $13.7 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. 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. 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 June 29, 2024. 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 cancellable 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. |
Warranty | Warranty The Company provides reserves for the estimated costs of product warranties at the time revenue is recognized. Warranty cost estimates are based on historical experience of known product failure rates, use of materials to repair or replace defective products, and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. |
Advertising Expense | Advertising Expense |
Research and Development Expense | Research and Development Expense Costs related to research and development (R&D) primarily consists of labor and benefits, supplies, facilities, consulting and outside service fees. The authoritative guidance allows for capitalization of software development costs incurred after a product’s technological feasibility has been established until the product is available for general release to the public. The Company believes its software development process is completed concurrent with the establishment of technological feasibility. As such, software development costs have been expensed as incurred. |
Government Assistance | Government Assistance |
Stock-Based Compensation | Stock-Based Compensation The Company's stock-based compensation includes a combination of time-based restricted stock awards and performance-based awards, stock options, and an Employee Stock Purchase Plan (ESPP). Restricted stock awards are granted without an exercise price and are converted to shares immediately upon vesting. 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. Time-based restricted stock awards will generally vest in annual installments over a period of three The Company's performance-based awards may include performance conditions, market conditions, time-based service conditions or a combination thereof and are generally expected to vest over one The Company estimates the fair value of ESPP and stock options purchase rights using the Black-Scholes Merton (BSM) option-pricing model. This option-pricing model requires the input of assumptions, including the award’s expected life and the price volatility of the underlying stock. The Company does not apply expected forfeiture rate and accounts for forfeitures as they occur. The total fair value of the equity awards is recorded on a straight-line basis, over the requisite service period of the awards for each separate vesting period of the award, except for certain performance-based awards which are amortized based upon the graded vesting method. |
Income Taxes | Income Taxes In accordance with the authoritative guidance on accounting for income taxes, the Company recognizes income taxes using an asset and liability approach. This approach requires the recognition of taxes payable or refundable for the current year, and deferred tax liabilities and assets for future tax consequences of events that have been recognized in the Company’s Consolidated Financial Statements or tax returns. The measurement of current and deferred taxes is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated. The authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of both positive and negative evidence and the relative weight of the evidence. With the exception of certain international jurisdictions, the Company has determined that at this time it is more likely than not that deferred tax assets attributable to the remaining jurisdictions will not be realized, primarily due to uncertainties related to its ability to utilize its net operating loss carryforwards before they expire. Accordingly, the Company has established a valuation allowance for such deferred tax assets. If there is a change in the Company’s ability to realize its deferred tax assets for which a valuation allowance has been established, then its tax provision may decrease in the period in which it determines that realization is more likely than not. Likewise, if the Company determines that it is not more likely than not that its deferred tax assets will be realized, then a valuation allowance may be established for such deferred tax assets and the Company’s tax provision may increase in the period in which the Company makes the determination. The authoritative guidance on accounting for uncertainty in income taxes prescribes the recognition threshold and measurement attributes for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Additionally, it provides guidance on recognition, classification, and disclosure of tax positions. The Company is subject to income tax audits by the respective tax authorities in the jurisdictions in which it operates. The determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. The Company recognizes liabilities based on its estimate of whether, and the extent to which, additional tax liabilities are more likely than not. If the Company ultimately determines that the payment of such a liability is not necessary, then it reverses the liability and recognizes a tax benefit during the period it is determined no longer necessary. The recognition and measurement of current taxes payable or refundable and deferred tax assets and liabilities requires that the Company make certain estimates and judgments. Changes to these estimates or a change in judgment may have a material impact on the Company’s tax provision in a future period. |
Restructuring Accrual | Restructuring Accrual In accordance with authoritative guidance on accounting for costs associated with exit or disposal activities, generally costs associated with restructuring activities are recognized when they are incurred. A liability for post-employment benefits for workforce reductions related to restructuring activities is recorded when payment is probable, and the amount is reasonably estimable. The Company continually evaluates the adequacy of the remaining liabilities under its restructuring initiatives. Although the Company believes that these estimates accurately reflect the costs of its restructuring plans, actual results may differ, thereby requiring the Company to record additional liabilities or reverse a portion of existing liabilities. |
Contingencies | Contingencies The Company is subject to various potential loss contingencies arising in the ordinary course of business. In determining a loss contingency, the Company considers the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as its ability to reasonably estimate the amount of loss. An estimated loss is accrued when it is probable that an asset has been impaired, a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to determine whether such accruals should be adjusted and whether new accruals are required. Contingent liabilities include contingent consideration in connection with the Company’s acquisitions, which represent earn-out payments and is recognized at fair value on the acquisition date and is remeasured each reporting period with subsequent adjustments recognized in SG&A expense in the Consolidated Statements of Operations. While the Company believes the estimates and assumptions are reasonable, there is significant judgment and uncertainty involved. |
Asset Retirement Obligations | Asset Retirement Obligations |
Recently Issued Accounting Pronouncements | SEC Climate Rules In March 2024, the SEC issued its final climate disclosure rules, which require the disclosure of climate-related information in annual reports and registration statements. The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material. On April 4, 2024, the SEC voluntarily stayed the implementation of the final rules pending the completion of judicial review of the consolidated challenges to the final rules by the Court of Appeals for the Eighth Circuit. The final rules, as originally issued, would be effective for the Company in various fiscal years, starting with its Annual Report on Form 10-K for fiscal year 2026. Disclosures pursuant to the final rules, as originally issued, would be required prospectively, with information for prior periods required only to the extent it was previously disclosed in an SEC filing. The Company is currently evaluating the impact of the final rules on its Consolidated Financial Statements and disclosures and continue to monitor the status of the related legal challenges. Accounting Standards Issued But Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024 (fiscal 2026 for the Company), with early and retrospective adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280), to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The amendments in this update will require public entities to disclose significant segment expenses included within segment profit and loss that are regularly provided to the Company’s Chief Executive Officer as the Company’s Chief Operating Decision Maker (CODM). This guidance is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for the Company), and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and will be applied retrospectively to all prior periods presented in the financial statements. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . The amendments clarify or improve disclosure and presentation requirements on various disclosure areas, including the statement of cash flows, earnings per share, debt, equity, and derivatives. The amendments will align the requirements in the FASB Accounting Standards Codification (ASC) with the SEC’s regulations. The amendments in this ASU will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will not be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. This ASU is not expected to have a material impact on our Consolidated Financial Statements or related disclosures. We reviewed all other accounting pronouncements issued during fiscal 2024 and concluded that they were not applicable to the Company. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted net (loss) income per share ( in millions, except per share data ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Numerator: Net (loss) income $ (25.8) $ 25.5 $ 15.5 Denominator: Weighted-average shares outstanding: Basic 222.6 224.6 230.9 Shares issuable assuming conversion of convertible notes (1) — 0.3 4.8 Effect of dilutive securities from stock-based compensation plans — 1.7 2.5 Diluted 222.6 226.6 238.2 Net (loss) income per share: Basic $ (0.12) $ 0.11 $ 0.07 Diluted $ (0.12) $ 0.11 $ 0.07 (1) Represents the dilutive impact for the Company's 1.75% Senior Convertible Notes due 2023 (2023 Notes), the 1.00% Senior Convertible Notes due 2024 (2024 Notes) and the 1.625% Senior Convertible Notes due 2026 (2026 Notes). 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. Refer to “Note 11. Debt” for more information. |
Schedule of Antidilutive Securities | The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Full Value Awards (1) 5.7 3.7 0.6 (1) See “Note 16. Stock-Based Compensation” for definition of Full Value Awards. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Components of AOCI | Changes in accumulated other comprehensive loss by component, net of tax, were as follows ( in millions ): Unrealized losses Foreign currency translation adjustments Change in unrealized components of defined benefit obligations, net of tax (1) Total Beginning balance as of July 1, 2023 $ (5.3) $ (125.4) $ (5.3) $ (136.0) Other comprehensive loss before reclassification — (6.0) (2.1) (8.1) Amounts reclassified from accumulated other comprehensive loss — — 0.1 0.1 Net current period other comprehensive loss — (6.0) (2.0) (8.0) Ending balance as of June 29, 2024 $ (5.3) $ (131.4) $ (7.3) $ (144.0) (1) Activity before reclassifications to the Consolidated Statements of Operations during the fiscal year ended June 29, 2024 relates to the unrealized actuarial loss of $2.8 million, net of income tax effect of $0.7 million. The amount reclassified out of accumulated other comprehensive loss represents the amortization of actuarial loss included as a component of Cost of revenues, R&D and SG&A in the Consolidated Statements of Operations for the year ended June 29, 2024. 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) | 12 Months Ended |
Jun. 29, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Changes in Earn-out Liabilities | The following table provides a reconciliation of changes in fair value of the Company’s earn-out liabilities for the years ended June 29, 2024 and July 1, 2023, as follows ( in millions ): Total Balance July 2, 2022 $ 2.5 Additions to Contingent Consideration 29.4 Change in Fair Value measurement (4.6) Payments of Contingent Consideration (7.6) Balance July 1, 2023 (1) $ 19.7 Change in Fair Value measurement (9.5) Payments of Contingent Consideration (0.7) Balance June 29, 2024 (2) $ 9.5 (1) Includes $1.1 million in Other current liabilities and $18.6 million in Other non-current liabilities on the Consolidated Balance Sheets. (2) Included in Other non-current liabilities on the Consolidated Balance Sheets. The Company’s assets and liabilities measured at fair value for the periods presented are as follows ( in millions ): June 29, 2024 July 1, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Debt available-for-sale securities: Asset-backed securities (1) $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — Total debt available-for-sale securities 0.3 — 0.3 — 0.3 — 0.3 — Money market funds (2) 295.3 295.3 — — 344.8 344.8 — — Trading securities (3) 1.5 1.5 — — 1.5 1.5 — — Foreign currency forward contracts (4) 1.7 — 1.7 — 3.5 — 3.5 — Total assets $ 298.8 $ 296.8 $ 2.0 $ — $ 350.1 $ 346.3 $ 3.8 $ — Liability: Foreign currency forward contracts (5) $ 1.5 $ — $ 1.5 $ — $ 2.4 $ — $ 2.4 $ — Contingent consideration (6) 9.5 — — 9.5 19.7 — — 19.7 Total liabilities $ 11.0 $ — $ 1.5 $ 9.5 $ 22.1 $ — $ 2.4 $ 19.7 (1) Included in Other non-current assets on the Consolidated Balance Sheets. (2) Includes, as of June 29, 2024, $286.7 million in Cash and cash equivalents, $4.9 million in Restricted cash and $3.7 million in Other non-current assets on the Consolidated Balance Sheets. Includes, as of July 1, 2023, $336.5 million in Cash and cash equivalents, $4.3 million in Restricted cash, and $4.0 million in Other non-current assets on the Consolidated Balance Sheets. (3) Included in Short-term investments on the Consolidated Balance Sheets. (4) Included in Prepayments and other current assets on the Consolidated Balance Sheets. (5) Included in Other current liabilities on the Consolidated Balance Sheets. (6) As of June 29, 2024, included in Other non-current liabilities on the Consolidated Balance Sheets. As of July 1, 2023, includes certain amounts in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. |
Balance Sheet and Other Detai_2
Balance Sheet and Other Details (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Balance Sheet And Other Details | |
Summary of Activity Related to Deferred Revenue and Financed Unearned Services Revenue | The following table summarizes the activity related to deferred revenue, for the year ended June 29, 2024 ( in millions ): June 29, 2024 Deferred revenue: Balance at beginning of period $ 102.0 Revenue deferrals for new contracts (1) 102.4 Revenue recognized during the period (2) (113.0) Balance at end of period (3) $ 91.4 Short-term deferred revenue $ 65.7 Long-term deferred revenue $ 25.7 (1) Included in these amounts is the impact from foreign currency exchange rate fluctuations. (2) Revenue recognized during the period represents releases from the balance at the beginning of the period as well as releases from the following period quarter-end deferrals. (3) The long-term portion of deferred revenue is included as a component of Other non-current liabilities on the Consolidated Balance Sheets. |
Activities and Balances for Allowance for Doubtful Accounts | The table below presents the activities and balances for allowance for credit losses, as follows ( in millions ): Balance at Beginning of Period Charged to Costs and Expenses Deduction (1) Balance at Year Ended June 29, 2024 $ 1.0 $ 1.3 $ (0.7) $ 1.6 Year Ended July 1, 2023 $ 1.4 $ 0.4 $ (0.8) $ 1.0 Year Ended July 2, 2022 $ 2.0 $ 0.9 $ (1.5) $ 1.4 (1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries. |
Schedule of Components of Inventories | The following table presents the components of inventories, net, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Finished goods $ 44.6 $ 49.0 Work in process 15.4 17.7 Raw materials 36.5 49.4 Inventories, net $ 96.5 $ 116.1 |
Schedule of Components of Prepayments and Other Current Assets | The following table presents the components of prepayments and other current assets, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Refundable income taxes $ 28.5 $ 27.6 Prepayments 18.5 16.5 Advances to contract manufacturers 5.7 9.8 Transaction tax receivables 3.3 5.1 Assets held for sale 2.5 2.5 Fair value of forward contracts 1.7 3.5 Other current assets 10.5 7.1 Prepayments and other current assets $ 70.7 $ 72.1 |
Schedule of Components of Property, Plant and Equipment | The following table presents the components of property, plant and equipment, net, as follows ( in millions ): June 29, 2024 July 1, 2023 Land $ 19.5 $ 19.6 Buildings and improvements 74.9 74.9 Machinery and equipment 378.6 362.6 Furniture, fixtures, software and office equipment 70.7 76.7 Leasehold improvements 73.0 70.7 Construction in progress 20.0 24.5 Property, plant and equipment, gross 636.7 629.0 Less : Accumulated depreciation and amortization (408.5) (386.0) Property, plant and equipment, net $ 228.2 $ 243.0 |
Schedule of Components of Other Current Assets | The following table presents the components of other non-current assets, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Operating ROU assets $ 35.8 $ 40.4 Long-term restricted cash 5.5 4.6 Deferred contract cost 2.5 2.9 Deposits 2.4 2.3 Debt issuance cost - Revolving Credit Facility 1.9 2.8 Other non-current assets 9.9 8.7 Other non-current assets $ 58.0 $ 61.7 |
Schedule of Components of Other Current Liabilities | The following table presents the components of other current liabilities, as follows ( in millions ): June 29, 2024 July 1, 2023 Restructuring accrual (Note 13) $ 14.1 $ 5.8 Operating lease liabilities 9.8 10.1 Income tax payable 5.3 4.4 Interest payable 5.1 5.5 Transaction tax payable 4.0 4.3 Warranty accrual 3.4 4.2 Fair value of forward contracts 1.5 2.4 Acquisition related holdback and related accruals — 4.1 Fair value of contingent consideration (Note 5) — 1.1 Other 14.3 7.9 Other current liabilities $ 57.5 $ 49.8 |
Schedule of Components of Other Non-current Liabilities | The following table presents the components of other non-current liabilities, as follo ws ( in millions ): June 29, 2024 July 1, 2023 Pension and post-employment benefits $ 51.2 $ 53.2 Operating lease liabilities 25.7 29.4 Long-term deferred revenue 25.7 23.4 Uncertain tax position 17.0 15.8 Financing obligation 15.7 15.8 Deferred tax liability 11.7 13.9 Fair value of contingent consideration (Note 5) 9.5 18.6 Warranty accrual 4.0 4.8 Asset retirement obligations 3.0 3.8 Restructuring accrual (Note 13) 0.8 — Other 7.3 8.0 Other non-current liabilities $ 171.6 $ 186.7 |
Schedule of Components of Interest and Other Income (Expense), Net | The following table presents the components of interest and other income, net, as follows ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Interest income $ 18.9 $ 10.2 $ 3.4 Foreign exchange (loss) gain, net (3.1) (2.2) 1.4 Gain on litigation settlement 7.3 — — Other (loss) income, net (1.4) (0.4) 0.4 Interest and other income, net $ 21.7 $ 7.6 $ 5.2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The Company’s assets and liabilities measured at fair value for the periods presented are as follows ( in millions ): June 29, 2024 July 1, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Debt available-for-sale securities: Asset-backed securities (1) $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — Total debt available-for-sale securities 0.3 — 0.3 — 0.3 — 0.3 — Money market funds (2) 295.3 295.3 — — 344.8 344.8 — — Trading securities (3) 1.5 1.5 — — 1.5 1.5 — — Foreign currency forward contracts (4) 1.7 — 1.7 — 3.5 — 3.5 — Total assets $ 298.8 $ 296.8 $ 2.0 $ — $ 350.1 $ 346.3 $ 3.8 $ — Liability: Foreign currency forward contracts (5) $ 1.5 $ — $ 1.5 $ — $ 2.4 $ — $ 2.4 $ — Contingent consideration (6) 9.5 — — 9.5 19.7 — — 19.7 Total liabilities $ 11.0 $ — $ 1.5 $ 9.5 $ 22.1 $ — $ 2.4 $ 19.7 (1) Included in Other non-current assets on the Consolidated Balance Sheets. (2) Includes, as of June 29, 2024, $286.7 million in Cash and cash equivalents, $4.9 million in Restricted cash and $3.7 million in Other non-current assets on the Consolidated Balance Sheets. Includes, as of July 1, 2023, $336.5 million in Cash and cash equivalents, $4.3 million in Restricted cash, and $4.0 million in Other non-current assets on the Consolidated Balance Sheets. (3) Included in Short-term investments on the Consolidated Balance Sheets. (4) Included in Prepayments and other current assets on the Consolidated Balance Sheets. (5) Included in Other current liabilities on the Consolidated Balance Sheets. (6) As of June 29, 2024, included in Other non-current liabilities on the Consolidated Balance Sheets. As of July 1, 2023, includes certain amounts in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. |
Schedule of Changes in Fair Value of Level 3 Liabilities | The following table provides a reconciliation of changes in fair value of the Company’s earn-out liabilities for the years ended June 29, 2024 and July 1, 2023, as follows ( in millions ): Total Balance July 2, 2022 $ 2.5 Additions to Contingent Consideration 29.4 Change in Fair Value measurement (4.6) Payments of Contingent Consideration (7.6) Balance July 1, 2023 (1) $ 19.7 Change in Fair Value measurement (9.5) Payments of Contingent Consideration (0.7) Balance June 29, 2024 (2) $ 9.5 (1) Includes $1.1 million in Other current liabilities and $18.6 million in Other non-current liabilities on the Consolidated Balance Sheets. (2) Included in Other non-current liabilities on the Consolidated Balance Sheets. The Company’s assets and liabilities measured at fair value for the periods presented are as follows ( in millions ): June 29, 2024 July 1, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Debt available-for-sale securities: Asset-backed securities (1) $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — $ 0.3 $ — Total debt available-for-sale securities 0.3 — 0.3 — 0.3 — 0.3 — Money market funds (2) 295.3 295.3 — — 344.8 344.8 — — Trading securities (3) 1.5 1.5 — — 1.5 1.5 — — Foreign currency forward contracts (4) 1.7 — 1.7 — 3.5 — 3.5 — Total assets $ 298.8 $ 296.8 $ 2.0 $ — $ 350.1 $ 346.3 $ 3.8 $ — Liability: Foreign currency forward contracts (5) $ 1.5 $ — $ 1.5 $ — $ 2.4 $ — $ 2.4 $ — Contingent consideration (6) 9.5 — — 9.5 19.7 — — 19.7 Total liabilities $ 11.0 $ — $ 1.5 $ 9.5 $ 22.1 $ — $ 2.4 $ 19.7 (1) Included in Other non-current assets on the Consolidated Balance Sheets. (2) Includes, as of June 29, 2024, $286.7 million in Cash and cash equivalents, $4.9 million in Restricted cash and $3.7 million in Other non-current assets on the Consolidated Balance Sheets. Includes, as of July 1, 2023, $336.5 million in Cash and cash equivalents, $4.3 million in Restricted cash, and $4.0 million in Other non-current assets on the Consolidated Balance Sheets. (3) Included in Short-term investments on the Consolidated Balance Sheets. (4) Included in Prepayments and other current assets on the Consolidated Balance Sheets. (5) Included in Other current liabilities on the Consolidated Balance Sheets. (6) As of June 29, 2024, included in Other non-current liabilities on the Consolidated Balance Sheets. As of July 1, 2023, includes certain amounts in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. |
Schedule of Debt Measures at Fair Value | The Company’s debt measured at fair value for the periods presented are as follows ( in millions ): June 29, 2024 July 1, 2023 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt: 3.75% Senior Notes $ 338.9 $ — $ 338.9 $ — $ 341.8 $ — $ 341.8 $ — 1.625% Senior Convertible Notes 238.1 — 238.1 — 262.7 — 262.7 — 1.00% Senior Convertible Notes (1) — — — — 95.6 — 95.6 — Total liabilities $ 577.0 $ — $ 577.0 $ — $ 700.1 $ — $ 700.1 $ — (1) The 2024 Notes were retired upon maturity on March 1, 2024. See “Note 11. Debt” for further discussion of the Company’s debt. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in the carry value of goodwill allocated segment are as follows (in millions) : Network Enablement (1) Service Enablement (1) Optical Security Total Balance as of July 2, 2022 (2) $ 332.8 $ 12.6 $ 42.2 $ 387.6 Acquisitions 60.0 — — 60.0 Measurement period adjustment (0.5) — — (0.5) Currency translation 6.9 1.2 — 8.1 Balance as of July 1, 2023 (3) $ 399.2 $ 13.8 $ 42.2 $ 455.2 Currency translation (1.1) (0.2) — (1.3) Other adjustment (4) — (1.0) — (1.0) Balance as of June 29, 2024 (5) $ 398.1 $ 12.6 $ 42.2 $ 452.9 (1) Balance as of July 2, 2022 adjusted to reflect a reclass of $1.2 million from Service Enablement to Network Enablement due to a product line movement. (2) Gross goodwill balances for NE, SE and OSP were $634.7 million, $285.2 million and $126.7 million, respectively, as of July 2, 2022. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively, as of July 2, 2022. (3) Gross goodwill balances for NE, SE and OSP were $701.1 million, $286.4 million and $126.7 million, respectively, as of July 1, 2023. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively, as of July 1, 2023. (4) Adjustment related to goodwill acquired as part of a prior acquisition. (5) Gross goodwill balances for NE, SE and OSP were $700.0 million, $285.2 million and $126.7 million, respectively, as of June 29, 2024. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively, as of June 29, 2024. |
Acquired Developed Technology_2
Acquired Developed Technology and Other Intangibles (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
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 as of June 29, 2024, and July 1, 2023 ( in millions ): As of June 29, 2024 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Acquired developed technology 2.9 years $ 436.2 $ (401.9) $ 34.3 Customer relationships 1.5 years 194.8 (191.0) 3.8 Other (1) 0.5 years 36.7 (36.6) 0.1 Total intangibles $ 667.7 $ (629.5) $ 38.2 As of July 1, 2023 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Acquired developed technology (2) 3.9 years $ 438.5 $ (390.2) $ 48.3 Customer relationships 2.0 years 195.2 (185.9) 9.3 Other (1) 0.7 years 39.8 (38.8) 1.0 Total intangibles $ 673.5 $ (614.9) $ 58.6 (1) Other intangibles consist of patents, proprietary know-how and trade secrets, trademarks and trade names. (2) During fiscal 2023, we recorded a $0.6 million non-cash charge due to the discontinued use of certain intellectual property. This charge has been recorded within SG&A |
Schedule of Estimated Future Amortization | Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of June 29, 2024, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows ( in millions ): Fiscal Years 2025 $ 15.8 2026 11.3 2027 7.5 2028 3.0 2029 0.6 Total amortization $ 38.2 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amount of Debt | As of June 29, 2024 and July 1, 2023, the Company’s debt on the Consolidated Balance Sheets represented the carrying amount of the Senior Convertible and Senior Notes, net of unamortized debt discount and issuance costs, as follows ( in millions ): June 29, 2024 July 1, 2023 Principal amount of 1.00% Senior Convertible Notes $ — $ 96.4 Unamortized 1.00% Senior Convertible Notes debt issuance cost — (0.2) Short-term debt $ — $ 96.2 Principal amount of 3.75% Senior Notes $ 400.0 $ 400.0 Unamortized 3.75% Senior Notes debt issuance cost (4.6) (5.5) Principal amount of 1.625% Senior Convertible Notes 250.0 250.0 Unamortized 1.625% Senior Convertible Notes debt discount (8.1) (12.9) Unamortized 1.625% Senior Convertible Notes debt issuance cost (1.3) (2.1) Long-term debt $ 636.0 $ 629.5 |
Schedule of Convertible Note Interest | The following table presents the interest expense for contractual interest and amortization of debt issuance costs ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Interest expense-contractual interest $ 19.7 $ 19.2 $ 16.5 Amortization of debt issuance cost 2.6 2.5 2.8 Accretion of debt discount 4.9 1.6 — Other 3.7 3.8 4.0 Total Interest Expense $ 30.9 $ 27.1 $ 23.3 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Lease, Cost | Lease expense and cash flow information related to our operating leases is as follows ( in millions ): June 29, 2024 July 1, 2023 Operating lease costs (1) $ 12.9 $ 13.1 Cash paid for amounts included in the measurement of operating lease liabilities $ 14.1 $ 14.4 Operating ROU assets obtained in exchange for operating lease obligations $ 7.2 $ 7.0 Weighted-average remaining lease term 6.3 years 6.8 years Weighted-average discount rate 5.6 % 4.8 % (1) Total variable lease costs were immaterial during the fiscal years ended June 29, 2024 and July 1, 2023. The total operating costs were included in Cost of revenues, R&D and SG&A in the Consolidated Statements of Operations. |
Lessee, Operating Lease, Liability, Maturity | Future minimum operating lease payments as of June 29, 2024 are as follows ( in millions ): Fiscal Years 2025 $ 10.2 2026 9.1 2027 6.9 2028 4.8 2029 3.3 Thereafter 8.5 Total lease payments 42.8 Less: Interest (7.3) Present value of lease liabilities $ 35.5 |
Schedule of Asset Retirement Obligations | A summary of the activity in the ARO accrual is outlined below ( in millions ): Balance at Beginning of Period Liabilities Incurred Liabilities Settled Accretion Expense Balance at End of Period Year ended June 29, 2024 $ 4.3 $ — $ (0.2) $ 0.1 $ 4.2 Year ended July 1, 2023 $ 4.2 $ 0.3 $ (0.3) $ 0.1 $ 4.3 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Plans | A summary of the activity in the restructuring accrual for the fiscal year ended June 29, 2024 is outlined below ( in millions ): Balance as of July 1, 2023 Restructuring and related charges (benefits) Cash Settlements Balance as of June 29, 2024 Fiscal 2024 Plan NSE/Corp $ — $ 13.6 $ (0.2) $ 13.4 OSP — 1.2 — 1.2 Fiscal 2024 Plan — 14.8 (0.2) 14.6 Fiscal 2023 Plan NSE/Corp 3.5 (0.9) (2.6) — OSP 0.6 — (0.6) — Fiscal 2023 Plan Phase I 4.1 (0.9) (3.2) — NSE 1.7 (0.3) (1.1) 0.3 Fiscal 2023 Plan Phase II 1.7 (0.3) (1.1) 0.3 Total (1) $ 5.8 $ 13.6 $ (4.5) $ 14.9 (1) Includes certain amounts in Other current liabilities and Other non-current liabilities on the Consolidated Balance Sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes | The Company’s income (loss) before income taxes consisted of the following ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Domestic $ (95.8) $ (37.6) $ (82.6) Foreign 107.4 98.3 147.7 Income before income taxes $ 11.6 $ 60.7 $ 65.1 |
Schedule of Income Tax Expense (Benefit) | The Company’s income tax expense (benefit) consisted of the following ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Federal: Current $ 0.3 $ — $ — Deferred — — — Total federal income tax expense 0.3 — — State: Current 3.3 2.6 (2.2) Deferred — — — Total state income tax expense (benefit) 3.3 2.6 (2.2) Foreign: Current 32.8 27.6 63.2 Deferred 1.0 5.0 (11.4) Total foreign income tax expense 33.8 32.6 51.8 Total income tax expense $ 37.4 $ 35.2 $ 49.6 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company’s income tax expense at the federal statutory rate to the income tax expense at the effective tax rate is as follows ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Income tax expense computed at federal statutory rate $ 2.4 $ 12.8 $ 13.7 Withholding Taxes 5.6 8.0 8.7 U.S. inclusion of foreign earnings 3.8 1.3 19.8 Internal restructuring 1.2 1.2 10.1 Valuation allowance 17.5 0.5 3.3 Foreign rate differential 3.8 4.5 6.9 Reserves 1.2 2.9 1.7 Permanent items (0.6) 1.1 0.3 Fair value change of the earn-out liability (2.0) (1.0) 0.1 Impact of prior years’ taxes 3.0 (0.5) (8.6) Research and experimentation benefits and other tax credits — (1.3) (1.1) State taxes — 2.6 0.8 Disallowed compensations 2.0 3.3 2.2 Senior Convertible Notes settlements — — (8.3) Other (0.5) (0.2) — Income tax expense $ 37.4 $ 35.2 $ 49.6 |
Schedule of Net Deferred Taxes | The components of the Company’s net deferred taxes consisted of the following ( in millions ): Balance as of June 29, 2024 July 1, 2023 July 2, 2022 Gross deferred tax assets: Tax credit carryforwards $ 138.2 $ 136.4 $ 136.7 Net operating loss carryforwards 381.0 437.5 491.8 Capital loss carryforwards 1.0 1.1 1.0 Inventories 37.2 40.2 34.5 Accruals and reserves 53.0 58.1 58.5 Intangibles including acquisition-related items 510.6 597.5 603.6 Capitalized research costs 312.3 186.7 100.3 Other 43.5 44.3 45.7 Gross deferred tax assets 1,476.8 1,501.8 1,472.1 Valuation allowance (1,336.0) (1,351.5) (1,320.8) Deferred tax assets 140.8 150.3 151.3 Gross deferred tax liabilities: Acquisition-related items (29.4) (30.9) (31.9) Tax on unrepatriated earnings (9.5) (13.7) (7.2) Foreign branch taxes (14.6) (15.0) (17.8) Other (16.5) (17.7) (17.6) Deferred tax liabilities (70.0) (77.3) (74.5) Total net deferred tax assets $ 70.8 $ 73.0 $ 76.8 |
Summary of Activity Of Deferred Tax Valuation Allowance | The following table provides information about the activity of our deferred tax valuation allowance (in millions) : Deferred Tax Valuation Allowance Balance at Additions Charged to Expenses or Other Accounts (1) Deductions Credited to Expenses or Other Accounts (2) Balance at Year Ended June 29, 2024 $ 1,351.5 $ 132.7 $ (148.2) $ 1,336.0 Year Ended July 1, 2023 $ 1,320.8 $ 114.4 $ (83.7) $ 1,351.5 Year Ended July 2, 2022 $ 1,308.9 $ 101.7 $ (89.8) $ 1,320.8 (1) Additions include current year additions charged to expenses and current year build due to increases in net deferred tax assets, return to provision true-ups, and other adjustments. (2) Deductions include current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets, return to provision true-ups, other adjustments and increases in deferred tax liabilities. |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits between July 3, 2021 and June 29, 2024 is as follows ( in millions ): Balance at July 3, 2021 $ 59.1 Additions based on tax positions related to current year 0.4 Additions based on tax positions related to prior year 2.6 Reduction based on tax positions related to prior year (2.6) Reductions for lapse of statute of limitations (6.1) Balance at July 2, 2022 53.4 Additions based on tax positions related to current year 2.7 Addition based on tax positions related to prior year 0.1 Reduction based on tax positions related to prior year (1.1) Reductions for lapse of statute of limitations (0.2) Balance at July1, 2023 54.9 Additions based on tax positions related to current year 1.2 Addition based on tax positions related to prior year 0.5 Reduction based on tax positions related to prior year (1.9) Reductions for lapse of statute of limitations (0.2) Balance at June 29, 2024 $ 54.5 |
Schedule of Tax Years That Remain Subject To Examination | The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by such jurisdictions as of June 29, 2024: Tax Jurisdictions Tax Years United States (1) 2005 and onward Canada 2022 and onward China 2019 and onward France 2021 and onward Germany 2018 and onward Korea 2019 and onward United Kingdom 2023 and onward (1) Although the Company is generally subject to a three-year statute of limitations in the U.S., tax authorities maintain the ability to adjust tax attribute carryforwards generated in earlier years. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchase Activity | The following table summarizes share repurchase activity related to the Company’s stock repurchase program (in millions, except average price per share amounts) : Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Total number of shares repurchased 2.3 7.3 14.8 Average price per share $ 8.70 $ 11.49 $ 15.91 Total purchase price $ 20.0 $ 83.9 $ 235.5 Remaining authorization at end of period $ 214.8 $ 234.8 $ 67.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of the Impact on Results of Operations of Recording Stock-based Compensation | The impact on the Company’s results of operations of recording stock-based compensation expense by function for fiscal 2024, 2023 and 2022 was as follows ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Cost of revenue $ 4.9 $ 4.8 $ 5.2 Research and development 8.7 8.6 8.6 Selling, general and administrative 35.8 37.8 38.5 Total stock-based compensation expense $ 49.4 $ 51.2 $ 52.3 |
Schedule of Changes in Nonvested Full Value Awards | A summary of the status of the Company’s non-vested Full Value Awards as of June 29, 2024 and changes during fiscal years 2022, 2023 and 2024 are presented below ( in millions, except Weighted-Average Grant Date Fair Value per share amounts ): Full Value Awards Performance Shares (1) Non-Performance Shares Total Number of Shares Weighted-Average Grant Date Fair Value Per Share Non-vested July 3, 2021 1.5 4.8 6.3 $ 13.98 Awards granted 0.4 2.4 2.8 $ 16.95 Awards vested (0.4) (2.2) (2.6) $ 13.38 Awards forfeited (0.1) (0.2) (0.3) $ 14.64 Non-vested July 2, 2022 1.4 4.8 6.2 $ 15.55 Awards granted 0.9 3.1 4.0 $ 14.35 Awards vested (0.6) (1.8) (2.4) $ 15.23 Awards forfeited — (0.3) (0.3) $ 14.78 Non-vested July 1, 2023 1.7 5.8 7.5 $ 15.06 Awards granted 1.2 3.6 4.8 $ 10.28 Awards vested (0.5) (2.2) (2.7) $ 14.96 Awards forfeited (0.2) (0.3) (0.5) $ 15.55 Non-vested June 29, 2024 2.2 6.9 9.1 $ 12.51 (1) Performance Shares refer to the Company’s MSU and PSU awards, where the actual number of shares awarded upon vesting may be higher or lower than the target amount depending on the achievement of the relevant market conditions and performance goal achievement. The majority of MSUs vest in equal annual installments over three |
Schedule of Valuation Assumptions of Fair Value Awards | The weighted-average assumptions used to measure fair value of performance-based awards with a market condition were as follows: Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Volatility of common stock 34.8 % 31.2 % 33.8 % Average volatility of peer companies 65.8 % 62.1 % 58.7 % Average correlation coefficient of peer companies 0.2305 0.3111 0.3442 Risk-free interest rate 4.9 % 3.4 % 0.2 % The Company did not issue stock option grants during the fiscal years ended June 29, 2024, July 1, 2023 and July 2, 2022. The Company estimates the fair value ESPP purchase rights using a BSM valuation model. The fair value is estimated on the date of grant using the BSM option valuation model with the following weighted-average assumptions: Employee Stock Purchase Plans June 29, 2024 July 1, 2023 July 2, 2022 Expected term (in years) 0.5 0.5 0.5 Expected volatility 29.8 % 37.2 % 24.3 % Risk-free interest rate 5.3 % 3.8 % 0.3 % |
Employee Pension and Other Be_2
Employee Pension and Other Benefit Plans (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Cost | The following table presents the components of the net periodic benefit cost for the pension and benefits plans ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Service cost $ — $ — $ 0.2 Interest cost 3.3 2.7 1.6 Expected return on plan assets (1.9) (1.7) (1.7) Recognized net actuarial losses (gains) 0.1 (0.1) 2.9 Net periodic benefit cost $ 1.5 $ 0.9 $ 3.0 |
Schedule of Changes in Benefit Obligations and Plan Assets | The changes in the benefit obligations and plan assets of the pension and benefits plans were ( in millions ): Pension Benefit Plans June 29, 2024 July 1, 2023 Change in benefit obligation Benefit obligation at beginning of year $ 86.1 $ 95.5 Interest cost 3.3 2.7 Actuarial losses (gains) 1.5 (4.2) Benefits paid (6.1) (5.6) Foreign exchange impact (1.1) (2.3) Benefit obligation at end of year $ 83.7 $ 86.1 Change in plan assets Fair value of plan assets at beginning of year $ 31.1 $ 29.3 Actual return on plan assets 0.7 0.2 Employer contributions 6.5 5.6 Benefits paid (6.1) (5.6) Foreign exchange impact (0.2) 1.6 Fair value of plan assets at end of year 32.0 31.1 Funded status (51.7) (55.0) Accumulated benefit obligation $ 83.7 $ 86.1 |
Schedule of Defined Benefit Plan Amounts Recognized by Financial Statement Location | Pension Benefit Plans June 29, 2024 July 1, 2023 Amount recognized on the Consolidated Balance Sheets at end of year: Non-current assets $ 6.6 $ 5.6 Current liabilities 7.5 7.8 Non-current liabilities 50.8 52.8 Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income: Net actuarial (loss) gain $ (2.1) $ 2.0 Amortization of accumulated net actuarial losses (gains) 0.1 (0.1) Total recognized in other comprehensive (loss) income $ (2.0) $ 1.9 |
Schedule of Net Periodic Cost and Benefit Obligation Assumptions Used | The following table summarizes the weighted average assumptions used to determine net periodic cost and benefit obligation for the Company’s U.K. and German pension plans: Pension Benefit Plans June 29, 2024 July 1, 2023 July 2, 2022 Used to determine net periodic cost at end of year: Discount rate 4.1 % 4.1 % 3.2 % Expected long-term return on plan assets 5.9 % 5.9 % 6.2 % Rate of pension increase 2.5 % 2.5 % 2.2 % Used to determine benefit obligation at end of year: Discount rate 4.1 % 4.1 % 3.2 % Rate of pension increase 2.5 % 2.5 % 2.2 % |
Schedule of Percentage of Asset Allocations and Plan Assets at Fair Value | The following table sets forth the plan assets at fair value and the percentage of assets allocations as of June 29, 2024 ( in millions ): Fair value as of June 29, 2024 Target Allocation Total Percentage of Plan Assets Level 1 Level 2 Assets: Equity / Other 40 % $ 12.1 37.8 % $ — $ 12.1 Fixed income 60 % 17.0 53.1 % — 17.0 Cash — % 2.9 9.1 % 2.9 — Total assets $ 32.0 100.0 % $ 2.9 $ 29.1 The following table sets forth the plan’s assets at fair value and the percentage of assets allocations as of July 1, 2023 ( in millions ): Fair value as of July 1, 2023 Target Allocation Total Percentage of Plan Assets Level 1 Level 2 Assets: Equity / Other 60 % $ 18.4 59.2 % $ — $ 18.4 Fixed income 40 % 10.0 32.1 % — 10.0 Cash — % 2.7 8.7 % 2.7 — Total assets $ 31.1 100.0 % $ 2.7 $ 28.4 |
Schedule of Total Expected Benefit Payments | The following table reflects the expected benefit payments to defined benefit pension plan participants. These payments have been estimated based on the same assumptions used to measure the Company’s PBO at fiscal year end and include benefits attributable to estimated future compensation increases ( in millions ): Fiscal Years 2025 $ 8.5 2026 6.0 2027 5.9 2028 5.2 2029 5.0 2030-2034 23.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Royalty Payments | Future minimum payments are expected to be paid through the third quarter of fiscal 2026, as follows ( in millions): Fiscal Years 2025 $ 0.6 2026 0.2 Total $ 0.8 |
Finance Lease Liabilities | As of June 29, 2024, future minimum annual lease payments of Santa Rosa’s non-cancelable leaseback agreements were as follows (in millions) : Fiscal Years 2025 $ 3.1 2026 3.1 2027 3.2 2028 2.7 2029 2.6 Thereafter 8.3 Total minimum leaseback payments $ 23.0 |
Schedule of Changes in the Entity's Warranty Reserve | The following table presents the changes in the Company’s warranty reserve during fiscal 2024 and 2023 ( in millions ): Year Ended June 29, 2024 July 1, 2023 Balance as of beginning of period $ 9.0 $ 10.6 Provision for warranty 1.2 1.6 Utilization of reserve (2.8) (1.2) Adjustments related to pre-existing warranties (including changes in estimates) — (2.0) Balance as of end of period $ 7.4 $ 9.0 |
Operating Segments and Geogra_2
Operating Segments and Geographic Information (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Information on Reportable Segments | Information on the Company’s reportable segments is as follows ( in millions ): Year Ended June 29, 2024 Network and Service Enablement Network Enablement Service Enablement Network and Optical Security and Performance Products Other Items (1) Consolidated GAAP Measures Product revenue $ 499.1 $ 37.3 $ 536.4 $ 298.4 $ — $ 834.8 Service revenue 116.6 49.0 165.6 — — 165.6 Net revenue $ 615.7 $ 86.3 $ 702.0 $ 298.4 $ — $ 1,000.4 Gross profit $ 382.3 $ 57.3 $ 439.6 $ 154.9 $ (18.6) $ 575.9 Gross margin 62.1 % 66.4 % 62.6 % 51.9 % 57.6 % Operating income $ 8.0 $ 107.0 $ (94.2) $ 20.8 Operating margin 1.1 % 35.9 % 2.1 % Year Ended July 1, 2023 Network and Service Enablement Network Enablement Service Enablement Network and Optical Security and Performance Products Other Items (1) Consolidated GAAP Measures Product revenue $ 588.1 $ 43.2 $ 631.3 $ 304.8 $ — $ 936.1 Service revenue 119.1 50.8 169.9 0.1 — 170.0 Net revenue $ 707.2 $ 94.0 $ 801.2 $ 304.9 $ — $ 1,106.1 Gross profit $ 447.6 $ 62.6 $ 510.2 $ 158.6 $ (30.0) $ 638.8 Gross margin 63.3 % 66.6 % 63.7 % 52.0 % 57.8 % Operating income $ 61.2 $ 111.3 $ (90.1) $ 82.4 Operating margin 7.6 % 36.5 % 7.4 % Year Ended July 2, 2022 Network and Service Enablement Network Enablement Service Enablement Network and Optical Security and Performance Products Other Items (1) Consolidated GAAP Measures Product revenue $ 745.1 $ 47.6 $ 792.7 $ 342.8 $ — $ 1,135.5 Service revenue 110.6 45.8 156.4 0.5 — 156.9 Net revenue $ 855.7 $ 93.4 $ 949.1 $ 343.3 $ — $ 1,292.4 Gross profit $ 550.8 $ 64.3 $ 615.1 $ 193.6 $ (35.2) $ 773.5 Gross margin 64.4 % 68.8 % 64.8 % 56.4 % 59.8 % Operating income $ 147.8 $ 139.0 $ (101.8) $ 185.0 Operating margin 15.6 % 40.5 % 14.3 % (1) See below tables for details of reconciling items impacting gross profit and operating income. Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Corporate reconciling items impacting gross profit: Total segment gross profit $ 594.5 $ 668.8 $ 808.7 Stock-based compensation (4.9) (4.8) (5.2) Amortization of intangibles (13.8) (24.6) (30.0) Other benefits (charges) unrelated to core operating performance (1) 0.1 (0.6) — Total reconciling items (18.6) (30.0) (35.2) GAAP gross profit $ 575.9 $ 638.8 $ 773.5 Corporate reconciling items impacting operating income: Total segment operating income $ 115.0 $ 172.5 $ 286.8 Stock-based compensation (49.4) (51.2) (52.3) Amortization of intangibles (20.1) (33.3) (39.7) Change in fair value of contingent liability 9.5 4.6 (0.3) Other (charges) benefits unrelated to core operating performance (1) (20.6) 1.9 (9.6) Restructuring and related (charges) benefits (13.6) (12.1) 0.1 Total reconciling items (94.2) (90.1) (101.8) GAAP operating income $ 20.8 $ 82.4 $ 185.0 (1) For the year ended June 29, 2024, Other charges (benefits) unrelated to core operating performance consisted of $18.1 million of certain acquisition and integration related charges and $2.5 million of net losses primarily related to long-lived assets. For the year ended July 1, 2023, Other charges (benefits) unrelated to core operating performance consisted of a $6.7 million gain on litigation settlement, offset by $2.5 million of certain acquisition and integration related charges and $2.3 million of net losses primarily related to long-lived assets. For the year ended July 2, 2022, Other charges (benefits) unrelated to core operating performance consisted of $5.1 million of certain acquisition and integration related charges and $4.5 million of net losses primarily related to long-lived assets. The following table presents net revenue by the three geographic regions in which the Company operates and net revenue from countries that exceeded 10% of the Company’s total net revenue for the years ended June 29, 2024, July 1, 2023 and July 2, 2022 ( in millions ): Years Ended June 29, 2024 July 1, 2023 July 2, 2022 Product Revenue Service Revenue Total Product Revenue Service Revenue Total Product Revenue Service Revenue Total Americas: United States $ 265.0 $ 60.4 $ 325.4 $ 303.5 $ 59.4 $ 362.9 $ 332.5 $ 56.4 $ 388.9 Other Americas 50.3 15.0 65.3 60.3 14.9 75.2 82.2 14.6 96.8 Total Americas $ 315.3 $ 75.4 $ 390.7 $ 363.8 $ 74.3 $ 438.1 $ 414.7 $ 71.0 $ 485.7 Asia-Pacific: Greater China $ 188.1 $ 5.9 $ 194.0 $ 203.5 $ 7.4 $ 210.9 $ 247.5 $ 8.9 $ 256.4 Other Asia 126.5 26.0 152.5 140.2 26.4 166.6 185.2 20.1 205.3 Total Asia-Pacific $ 314.6 $ 31.9 $ 346.5 $ 343.7 $ 33.8 $ 377.5 $ 432.7 $ 29.0 $ 461.7 EMEA: $ 204.9 $ 58.3 $ 263.2 $ 228.6 $ 61.9 $ 290.5 $ 288.1 $ 56.9 $ 345.0 Total net revenue $ 834.8 $ 165.6 $ 1,000.4 $ 936.1 $ 170.0 $ 1,106.1 $ 1,135.5 $ 156.9 $ 1,292.4 One customer of the Company generated $154.1 million, $157.7 million and $178.4 million of net revenue, which represented more than 10% of total net revenue, during fiscal 2024, 2023 and 2022, respectively. Property, plant and equipment, net was identified based on the operations in the corresponding geographic areas ( in millions ): Years Ended June 29, 2024 July 1, 2023 United States $ 165.0 $ 166.9 Other Americas 1.1 1.3 China 24.1 33.6 Other Asia-Pacific 5.1 4.0 United Kingdom 20.3 24.6 Other EMEA 12.6 12.6 Total property, plant and equipment, net $ 228.2 $ 243.0 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 USD ($) region | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | |
Property, Plant and Equipment | |||
Restricted cash, current | $ 5 | $ 4.5 | |
Restricted cash, noncurrent | $ 5.5 | 4.6 | |
Number of geographic regions in which entity operates | region | 3 | ||
Advertising cost during the period | $ 1.3 | 2.6 | $ 3.2 |
Asset retirement obligations, current | 1.2 | 0.5 | |
Asset retirement obligations | $ 3 | $ 3.8 | |
Minimum | Restricted Stock Units with Market and Performance Conditions | |||
Property, Plant and Equipment | |||
Vesting period | 3 years | ||
Minimum | Full Value Awards - Performance shares | |||
Property, Plant and Equipment | |||
Vesting period | 1 year | ||
Maximum | Restricted Stock Units with Market and Performance Conditions | |||
Property, Plant and Equipment | |||
Vesting period | 4 years | ||
Maximum | Full Value Awards - Performance shares | |||
Property, Plant and Equipment | |||
Vesting period | 4 years | ||
Building and improvements | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 5 years | ||
Building and improvements | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 50 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 30 years | ||
Furniture, fixtures, software and office equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 2 years | ||
Furniture, fixtures, software and office equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 10 years | ||
Demonstration units | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 3 years | ||
Demonstration units | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful lives | 5 years |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | Mar. 06, 2023 | May 29, 2018 | Mar. 03, 2017 | |
Numerator: | ||||||
Net (loss) income | $ (25.8) | $ 25.5 | $ 15.5 | |||
Weighted-average shares outstanding: | ||||||
Basic (in shares) | 222.6 | 224.6 | 230.9 | |||
Shares issuable assuming conversion of convertible notes (in shares) | 0 | 0.3 | 4.8 | |||
Effect of dilutive securities from stock-based compensation plans (in shares) | 0 | 1.7 | 2.5 | |||
Diluted (in shares) | 222.6 | 226.6 | 238.2 | |||
Net (loss) income per share: | ||||||
Basic (usd per share) | $ (0.12) | $ 0.11 | $ 0.07 | |||
Diluted (usd per share) | $ (0.12) | $ 0.11 | $ 0.07 | |||
1.75% Senior Convertible Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on senior convertible notes | 1.75% | |||||
1.00% Senior Convertible Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on senior convertible notes | 1% | 1% | 1% | |||
1.625% Senior Convertible Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on senior convertible notes | 1.625% | 1.625% |
Earnings Per Share - Weighted-A
Earnings Per Share - Weighted-Average Potentially Dilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Full Value Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 5.7 | 3.7 | 0.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Changes in accumulated other comprehensive income (loss) by component | |||
Beginning balance | $ 690.8 | $ 671.7 | $ 763.9 |
Net change in accumulated other comprehensive (loss) income | (8) | 20.4 | (59.2) |
Ending balance | 681.6 | 690.8 | 671.7 |
Unrealized actuarial gain | 2.8 | ||
Income tax effect | 0.7 | ||
Total | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Beginning balance | (136) | (156.4) | (97.2) |
Other comprehensive loss before reclassification | (8.1) | ||
Amounts reclassified from accumulated other comprehensive loss | 0.1 | ||
Net change in accumulated other comprehensive (loss) income | (8) | 20.4 | (59.2) |
Ending balance | (144) | (136) | $ (156.4) |
Unrealized losses on available-for-sale investments | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Beginning balance | (5.3) | ||
Other comprehensive loss before reclassification | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Net change in accumulated other comprehensive (loss) income | 0 | ||
Ending balance | (5.3) | (5.3) | |
Foreign currency translation adjustments | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Beginning balance | (125.4) | ||
Other comprehensive loss before reclassification | (6) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Net change in accumulated other comprehensive (loss) income | (6) | ||
Ending balance | (131.4) | (125.4) | |
Change in unrealized components of defined benefit obligations, net of tax | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Beginning balance | (5.3) | ||
Other comprehensive loss before reclassification | (2.1) | ||
Amounts reclassified from accumulated other comprehensive loss | 0.1 | ||
Net change in accumulated other comprehensive (loss) income | (2) | ||
Ending balance | $ (7.3) | $ (5.3) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||||||
Oct. 05, 2022 | Jul. 18, 2022 | May 20, 2022 | Sep. 17, 2021 | Jun. 08, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Business Acquisition [Line Items] | ||||||||
Contingent consideration | $ 9.5 | $ 19.7 | ||||||
Goodwill, net | $ 452.9 | $ 455.2 | $ 387.6 | |||||
Developed Technology Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful life | 2 years 10 months 24 days | 3 years 10 months 24 days | ||||||
Other | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash paid for asset purchases | $ 2.9 | |||||||
Indemnity holdback | 0.2 | |||||||
Other | Developed Technology Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets acquired | $ 2.5 | |||||||
Useful life | 5 years | |||||||
Jackson Labs Technologies, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration of acquisition | $ 49.9 | |||||||
Contingent consideration | $ 117 | |||||||
Contingent consideration period | 3 years | |||||||
Consideration liabilities incurred | $ 5 | |||||||
Final cash and net working capital adjustments | 2 | |||||||
Goodwill, net | 48.3 | |||||||
Assets acquired | 30.6 | |||||||
Acquisition related cost | $ 0.8 | |||||||
Jackson Labs Technologies, LLC | Developed Technology and Other Intangibles | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful life | 1 year | |||||||
Jackson Labs Technologies, LLC | Developed Technology and Other Intangibles | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful life | 6 years | |||||||
Other | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration of acquisition | $ 1.6 | |||||||
Contingent consideration | $ 3.3 | |||||||
Consideration liabilities incurred | $ 2 | 0.4 | ||||||
Goodwill, net | 11.2 | 10 | ||||||
Cash consideration | 17.5 | 9.5 | $ 1.2 | |||||
Deferred tax liability | 1.8 | 1.6 | ||||||
Other | Developed Technology and Other Intangibles | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets acquired | $ 7.3 | |||||||
Other | Developed Technology and Other Intangibles | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful life | 1 year | |||||||
Other | Developed Technology and Other Intangibles | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful life | 6 years | |||||||
Other | Developed Technology Rights | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets acquired | $ 5.1 | |||||||
Useful life | 4 years | 5 years |
Acquisitions - Earn-out Liabili
Acquisitions - Earn-out Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of contingent consideration, current | $ 0 | $ 1.1 |
Fair value of contingent consideration, non-current | 9.5 | 18.6 |
Contingent Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning of period | 19.7 | 2.5 |
Additions to Contingent Consideration | 29.4 | |
Change in Fair Value measurement | 9.5 | 4.6 |
Payments of Contingent Consideration | (0.7) | (7.6) |
End of period | $ 9.5 | $ 19.7 |
Balance Sheet and Other Detai_3
Balance Sheet and Other Details - Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Capitalized Contract Cost [Line Items] | ||
Contract asset | $ 16.3 | $ 13.7 |
Change in Contract with Customer, Liability (Roll Forward) | ||
Balance at beginning of period | 102 | |
Revenue deferrals for new contracts | 102.4 | |
Revenue recognized during the period | (113) | |
Balance at end of period | 91.4 | |
Short-term deferred revenue | 65.7 | 78.6 |
Long-term deferred revenue | $ 25.7 | $ 23.4 |
Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Payment period from invoice date | 30 days | |
Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Payment period from invoice date | 90 days |
Balance Sheet and Other Detai_4
Balance Sheet and Other Details - Revenue Remaining Performance Obligation Narrative (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 237.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 88% |
Remaining performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-06-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period |
Balance Sheet and Other Detai_5
Balance Sheet and Other Details - Accounts Receivable Reserves and Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Allowance for Doubtful Accounts Receivable | |||
Balance at Beginning of Period | $ 1 | $ 1.4 | $ 2 |
Charged to Costs and Expenses | 1.3 | 0.4 | 0.9 |
Deduction | (0.7) | (0.8) | (1.5) |
Balance at End of Period | $ 1.6 | $ 1 | $ 1.4 |
Balance Sheet and Other Detai_6
Balance Sheet and Other Details - Inventories (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Inventories, net | ||
Finished goods | $ 44.6 | $ 49 |
Work in process | 15.4 | 17.7 |
Raw materials | 36.5 | 49.4 |
Inventories, net | $ 96.5 | $ 116.1 |
Balance Sheet and Other Detai_7
Balance Sheet and Other Details - Prepayments and Other Current Assets (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Prepayments and other current assets | ||
Refundable income taxes | $ 28.5 | $ 27.6 |
Prepayments | 18.5 | 16.5 |
Advances to contract manufacturers | 5.7 | 9.8 |
Transaction tax receivables | 3.3 | 5.1 |
Assets held for sale | 2.5 | 2.5 |
Fair value of forward contracts | 1.7 | 3.5 |
Other current assets | 10.5 | 7.1 |
Prepayments and other current assets | $ 70.7 | $ 72.1 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepayments and other current assets | Prepayments and other current assets |
Balance Sheet and Other Detai_8
Balance Sheet and Other Details - Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 636.7 | $ 629 |
Less: Accumulated depreciation and amortization | (408.5) | (386) |
Property, plant and equipment, net | 228.2 | 243 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 19.5 | 19.6 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 74.9 | 74.9 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 378.6 | 362.6 |
Furniture, fixtures, software and office equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 70.7 | 76.7 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 73 | 70.7 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 20 | $ 24.5 |
Balance Sheet and Other Detai_9
Balance Sheet and Other Details - Other Non-Current Assets (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Balance Sheet And Other Details [Abstract] | ||
Operating ROU assets | $ 35.8 | $ 40.4 |
Long-term restricted cash | 5.5 | 4.6 |
Deferred contract cost | 2.5 | 2.9 |
Deposits | 2.4 | 2.3 |
Debt issuance cost - Revolving Credit Facility | 1.9 | 2.8 |
Other non-current assets | 9.9 | 8.7 |
Other non-current assets | $ 58 | $ 61.7 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets |
Balance Sheet and Other Deta_10
Balance Sheet and Other Details - Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Balance Sheet And Other Details [Abstract] | ||
Restructuring accrual | $ 14.1 | $ 5.8 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating lease liabilities | $ 9.8 | $ 10.1 |
Income tax payable | 5.3 | 4.4 |
Interest payable | 5.1 | 5.5 |
Transaction tax payable | 4 | 4.3 |
Warranty accrual | 3.4 | 4.2 |
Fair value of forward contracts | 1.5 | 2.4 |
Acquisition related holdback and related accruals | 0 | 4.1 |
Fair value of contingent consideration | 0 | 1.1 |
Other | 14.3 | 7.9 |
Other current liabilities | $ 57.5 | $ 49.8 |
Balance Sheet and Other Deta_11
Balance Sheet and Other Details - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Balance Sheet And Other Details [Abstract] | ||
Pension and post-employment benefits | $ 51.2 | $ 53.2 |
Operating lease liabilities | 25.7 | 29.4 |
Long-term deferred revenue | 25.7 | 23.4 |
Uncertain tax position | 17 | 15.8 |
Financing obligation | 15.7 | 15.8 |
Deferred tax liability | 11.7 | 13.9 |
Fair value of contingent consideration | 9.5 | 18.6 |
Warranty accrual | 4 | 4.8 |
Asset retirement obligations | 3 | 3.8 |
Restructuring accrual | 0.8 | 0 |
Other | 7.3 | 8 |
Other non-current liabilities | $ 171.6 | $ 186.7 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Balance Sheet and Other Deta_12
Balance Sheet and Other Details - Interest and Other Income, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Balance Sheet And Other Details | |||
Interest income | $ 18.9 | $ 10.2 | $ 3.4 |
Foreign exchange (loss) gain, net | (3.1) | (2.2) | 1.4 |
Gain on litigation settlement | 7.3 | 0 | 0 |
Other (loss) income, net | (1.4) | (0.4) | 0.4 |
Interest and other income, net | $ 21.7 | $ 7.6 | $ 5.2 |
Investments and Forward Contr_2
Investments and Forward Contracts - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Summary of Investment Holdings [Line Items] | ||
Short-term investments | $ 19.9 | $ 14.6 |
Deposit asset term | 30 days | 30 days |
Deposit assets | $ 18.4 | $ 13.1 |
Trading securities | 1.5 | 1.5 |
Equity securities | 1.4 | 1.2 |
Debt securities | 0.1 | 0.1 |
Market securities | 0.2 | |
Fair value of forward contracts | 1.7 | 3.5 |
Fair value of forward contracts | 1.5 | 2.4 |
Foreign exchange forward contracts | ||
Summary of Investment Holdings [Line Items] | ||
Fair value of forward contracts | 1.7 | 3.5 |
Fair value of forward contracts | 1.5 | 2.4 |
Not designated | Foreign exchange forward contracts | ||
Summary of Investment Holdings [Line Items] | ||
Gain (loss) on derivatives | $ (0.7) | 1.2 |
Not designated | Foreign exchange forward contracts | Held to purchase | ||
Summary of Investment Holdings [Line Items] | ||
Derivative term | 120 days | |
Notional amount of forward contracts | $ 81.9 | 87.5 |
Not designated | Foreign exchange forward contracts | Held to sell | ||
Summary of Investment Holdings [Line Items] | ||
Notional amount of forward contracts | $ 26.8 | $ 19.3 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Assets: | ||
Total debt available-for-sale securities | $ 0.3 | $ 0.3 |
Money market funds | 295.3 | 344.8 |
Trading securities | 1.5 | 1.5 |
Foreign currency forward contracts | 1.7 | 3.5 |
Total assets | 298.8 | 350.1 |
Liability: | ||
Foreign currency forward contracts | 1.5 | 2.4 |
Contingent consideration | 9.5 | 19.7 |
Total liabilities | 11 | 22.1 |
Cash and cash equivalents | ||
Assets: | ||
Total assets | 286.7 | 336.5 |
Restricted cash | ||
Assets: | ||
Total assets | 4.9 | 4.3 |
Other non-current assets | ||
Assets: | ||
Total assets | 3.7 | 4 |
Asset-backed securities | ||
Assets: | ||
Total debt available-for-sale securities | 0.3 | 0.3 |
Level 1 | ||
Assets: | ||
Total debt available-for-sale securities | 0 | 0 |
Money market funds | 295.3 | 344.8 |
Trading securities | 1.5 | 1.5 |
Foreign currency forward contracts | 0 | 0 |
Total assets | 296.8 | 346.3 |
Liability: | ||
Foreign currency forward contracts | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Asset-backed securities | ||
Assets: | ||
Total debt available-for-sale securities | 0 | 0 |
Level 2 | ||
Assets: | ||
Total debt available-for-sale securities | 0.3 | 0.3 |
Money market funds | 0 | 0 |
Trading securities | 0 | 0 |
Foreign currency forward contracts | 1.7 | 3.5 |
Total assets | 2 | 3.8 |
Liability: | ||
Foreign currency forward contracts | 1.5 | 2.4 |
Contingent consideration | 0 | 0 |
Total liabilities | 1.5 | 2.4 |
Level 2 | Asset-backed securities | ||
Assets: | ||
Total debt available-for-sale securities | 0.3 | 0.3 |
Level 3 | ||
Assets: | ||
Total debt available-for-sale securities | 0 | 0 |
Money market funds | 0 | 0 |
Trading securities | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total assets | 0 | 0 |
Liability: | ||
Foreign currency forward contracts | 0 | 0 |
Contingent consideration | 9.5 | 19.7 |
Total liabilities | 9.5 | 19.7 |
Level 3 | Asset-backed securities | ||
Assets: | ||
Total debt available-for-sale securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Convertible Debt | Jun. 29, 2024 | Mar. 06, 2023 | Mar. 03, 2017 |
3.75% Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate on senior convertible notes | 3.75% | ||
1.625% Senior Convertible Notes | |||
Debt Instrument [Line Items] | |||
Interest rate on senior convertible notes | 1.625% | 1.625% | |
1.00% Senior Convertible Notes | |||
Debt Instrument [Line Items] | |||
Interest rate on senior convertible notes | 1% | 1% | 1% |
Fair Value Measurements - Other
Fair Value Measurements - Other Fair Value Measures (Details) - Convertible Debt - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 | Mar. 06, 2023 | Mar. 03, 2017 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 577 | $ 700.1 | ||
Level 1 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 0 | ||
Level 2 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 577 | 700.1 | ||
Level 3 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 0 | 0 | ||
3.75% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.75% | |||
Long-term Debt | $ 338.9 | 341.8 | ||
3.75% Senior Notes | Level 1 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 0 | ||
3.75% Senior Notes | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 338.9 | 341.8 | ||
3.75% Senior Notes | Level 3 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 0 | 0 | ||
1.625% Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.625% | 1.625% | ||
Long-term Debt | $ 238.1 | 262.7 | ||
1.625% Senior Convertible Notes | Level 1 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 0 | ||
1.625% Senior Convertible Notes | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 238.1 | 262.7 | ||
1.625% Senior Convertible Notes | Level 3 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 0 | 0 | ||
1.00% Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1% | 1% | 1% | |
Long-term Debt | $ 0 | 95.6 | ||
1.00% Senior Convertible Notes | Level 1 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 0 | ||
1.00% Senior Convertible Notes | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 95.6 | ||
1.00% Senior Convertible Notes | Level 3 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 0 | $ 0 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Changes in goodwill | |||
Balance at the beginning of the period | $ 455.2 | $ 387.6 | |
Acquisitions | 60 | ||
Measurement period adjustment | (0.5) | ||
Currency translation | (1.3) | 8.1 | |
Other adjustment | (1) | ||
Balance at the end of the period | 452.9 | 455.2 | $ 387.6 |
Network Enablement | |||
Changes in goodwill | |||
Balance at the beginning of the period | 399.2 | 332.8 | |
Acquisitions | 60 | ||
Measurement period adjustment | (0.5) | ||
Currency translation | (1.1) | 6.9 | |
Other adjustment | 0 | ||
Balance at the end of the period | 398.1 | 399.2 | 332.8 |
Goodwill transfers | 1.2 | ||
Goodwill balance | 700 | 701.1 | 634.7 |
Accumulated impairment losses | 301.9 | 301.9 | 301.9 |
Service Enablement | |||
Changes in goodwill | |||
Balance at the beginning of the period | 13.8 | 12.6 | |
Acquisitions | 0 | ||
Measurement period adjustment | 0 | ||
Currency translation | (0.2) | 1.2 | |
Other adjustment | (1) | ||
Balance at the end of the period | 12.6 | 13.8 | 12.6 |
Goodwill transfers | (1.2) | ||
Goodwill balance | 285.2 | 286.4 | 285.2 |
Accumulated impairment losses | 272.6 | 272.6 | 272.6 |
Optical Security and Performance Products | |||
Changes in goodwill | |||
Balance at the beginning of the period | 42.2 | 42.2 | |
Acquisitions | 0 | ||
Measurement period adjustment | 0 | ||
Currency translation | 0 | 0 | |
Other adjustment | 0 | ||
Balance at the end of the period | 42.2 | 42.2 | 42.2 |
Goodwill balance | 126.7 | 126.7 | 126.7 |
Accumulated impairment losses | $ 84.5 | $ 84.5 | $ 84.5 |
Acquired Developed Technology_3
Acquired Developed Technology and Other Intangibles - Summary of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Acquired developed technology, customer relationships and other intangibles | ||
Gross Carrying Amount | $ 667.7 | $ 673.5 |
Accumulated Amortization | (629.5) | (614.9) |
Total amortization | $ 38.2 | $ 58.6 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | |
Acquired developed technology | ||
Acquired developed technology, customer relationships and other intangibles | ||
Weighted-Average Remaining Useful Life | 2 years 10 months 24 days | 3 years 10 months 24 days |
Gross Carrying Amount | $ 436.2 | $ 438.5 |
Accumulated Amortization | (401.9) | (390.2) |
Total amortization | $ 34.3 | 48.3 |
Impairment of intangible assets | $ 0.6 | |
Customer relationships | ||
Acquired developed technology, customer relationships and other intangibles | ||
Weighted-Average Remaining Useful Life | 1 year 6 months | 2 years |
Gross Carrying Amount | $ 194.8 | $ 195.2 |
Accumulated Amortization | (191) | (185.9) |
Total amortization | $ 3.8 | $ 9.3 |
Other | ||
Acquired developed technology, customer relationships and other intangibles | ||
Weighted-Average Remaining Useful Life | 6 months | 8 months 12 days |
Gross Carrying Amount | $ 36.7 | $ 39.8 |
Accumulated Amortization | (36.6) | (38.8) |
Total amortization | $ 0.1 | $ 1 |
Acquired Developed Technology_4
Acquired Developed Technology and Other Intangibles - Estimated Future Amortization (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Acquired Developed Technology And Other Intangibles [Abstract] | ||
2025 | $ 15.8 | |
2026 | 11.3 | |
2027 | 7.5 | |
2028 | 3 | |
2029 | 0.6 | |
Total amortization | $ 38.2 | $ 58.6 |
Debt - Carrying Amounts of the
Debt - Carrying Amounts of the Liability and Equity Components (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 | Mar. 06, 2023 | Sep. 29, 2021 | Mar. 03, 2017 |
Debt Instrument [Line Items] | |||||
Short-term debt | $ 0 | $ 96.2 | |||
Unamortized senior convertible notes debt issuance cost | (1.9) | (2.8) | |||
Long-term debt | 636 | 629.5 | |||
Senior Notes | 3.75% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on senior convertible notes | 3.75% | ||||
Principal amount of notes | 400 | 400 | |||
Unamortized senior convertible notes debt issuance cost | (4.6) | (5.5) | |||
Senior Notes | 1.625% Senior Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount of notes | $ 250 | 250 | |||
Convertible Debt | 1.00% Senior Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on senior convertible notes | 1% | 1% | 1% | ||
Convertible Debt | 3.75% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on senior convertible notes | 3.75% | ||||
Convertible Debt | 1.625% Senior Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on senior convertible notes | 1.625% | 1.625% | |||
Unamortized senior convertible notes debt issuance cost | $ (1.3) | (2.1) | |||
Unamortized 1.625% Senior Convertible Notes debt discount | (8.1) | (12.9) | |||
Convertible Debt | 1.00% Senior Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount of 1.00% Senior Convertible Notes | 0 | 96.4 | |||
Unamortized 1.00% Senior Convertible Notes debt issuance cost | $ 0 | $ (0.2) |
Debt - 1.625% Senior Convertibl
Debt - 1.625% Senior Convertible Notes (2026 Notes) (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Mar. 06, 2023 USD ($) day $ / shares shares | Mar. 01, 2023 | Jun. 03, 2022 USD ($) | Mar. 02, 2022 USD ($) | Nov. 22, 2021 USD ($) | Sep. 02, 2021 USD ($) | Mar. 22, 2017 USD ($) | Jun. 29, 2024 USD ($) | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | Mar. 03, 2017 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Convertible note settlement/modification | $ 10,100,000 | $ 141,100,000 | |||||||||
Loss on convertible note debt modification and settlement | $ 3,100,000 | $ 6,400,000 | $ 85,900,000 | $ 0 | 0 | 101,800,000 | |||||
Payments of debt issuance costs | 0 | 4,200,000 | 10,500,000 | ||||||||
Loss on convertible note modification | $ 0 | $ 2,200,000 | $ 0 | ||||||||
1.625% Senior Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on convertible note debt modification and settlement | $ 14,600,000 | ||||||||||
1.625% Senior Convertible Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate on senior convertible notes | 1.625% | 1.625% | |||||||||
Face amount of senior convertible notes | $ 250,000,000 | ||||||||||
Proceeds from debt before debt issuance costs | 118,000,000 | ||||||||||
Proceeds from issuance of debt | 113,800,000 | ||||||||||
Payments of debt issuance costs | 4,200,000 | ||||||||||
Loss on convertible note modification | 2,200,000 | ||||||||||
Issuance costs | $ 2,000,000 | ||||||||||
Conversion rate (shares) | shares | 75.7963 | ||||||||||
Initial conversion price (usd per share) | $ / shares | $ 13.19 | ||||||||||
Premium to closing sale price of common stock (percent) | 22.50% | ||||||||||
Incremental repurchase amount | $ 1,000 | ||||||||||
Threshold percentage of stock price trigger | 130% | ||||||||||
Debt conversion, trading days threshold | day | 20 | ||||||||||
Threshold consecutive trading days (days) | day | 30 | ||||||||||
Repurchase price (percent) | 100% | ||||||||||
Threshold principal amount | $ 75,000,000 | ||||||||||
Expected remaining term | 1 year 8 months 12 days | ||||||||||
1.625% Senior Convertible Notes | Convertible Debt | Debt Conversion Terms One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold percentage of stock price trigger | 130% | ||||||||||
Debt conversion, trading days threshold | day | 20 | ||||||||||
Threshold consecutive trading days (days) | day | 30 | ||||||||||
1.625% Senior Convertible Notes | Convertible Debt | Debt Conversion Terms Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt conversion, trading days threshold | day | 10 | ||||||||||
Trading day period | 45 days | ||||||||||
1.625% Senior Convertible Notes | Convertible Debt | Debt Conversion Terms Three | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold percentage of stock price trigger | 10% | ||||||||||
1.625% Senior Convertible Notes | Convertible Debt | Debt Conversion Terms Four | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold percentage of stock price trigger | 98% | ||||||||||
Debt conversion, trading days threshold | day | 5 | ||||||||||
Threshold consecutive trading days (days) | day | 10 | ||||||||||
1.625% Senior Convertible Notes | Convertible Debt | Exchange Transaction | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issued | $ 132,000,000 | ||||||||||
Repayments of debt | 127,500,000 | ||||||||||
Convertible note settlement/modification | $ 10,100,000 | ||||||||||
1.00% Senior Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on convertible note debt modification and settlement | $ 6,400,000 | ||||||||||
1.00% Senior Convertible Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate on senior convertible notes | 1% | 1% | 1% | ||||||||
Face amount of senior convertible notes | $ 60,000,000 | $ 400,000,000 | |||||||||
Debt issued | $ 3,100,000 | $ 26,800,000 | $ 25,000,000 | $ 181,200,000 | |||||||
Payments of debt issuance costs | $ 8,900,000 | ||||||||||
Issuance costs | $ 300,000 |
Debt - 3.75% Senior Notes (2029
Debt - 3.75% Senior Notes (2029 Notes) (Details) - 3.75% Senior Notes - Senior Notes - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Sep. 29, 2021 | |
Debt Instrument [Line Items] | ||
Interest rate on senior convertible notes | 3.75% | |
Face amount of senior convertible notes | $ 400 | |
Issuance costs | $ 7 | |
Expected remaining term | 5 years 3 months 18 days |
Debt - 1.75% Convertible Senior
Debt - 1.75% Convertible Senior Notes (2023 Notes) (Details) - USD ($) | 12 Months Ended | ||||||||
Jun. 01, 2023 | Jun. 03, 2022 | Mar. 02, 2022 | Nov. 22, 2021 | Sep. 02, 2021 | May 29, 2018 | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Debt Instrument [Line Items] | |||||||||
Retirement of convertible notes upon maturity | $ 96,400,000 | $ 68,100,000 | $ 0 | ||||||
Convertible Debt | 1.75% Senior Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on senior convertible notes | 1.75% | ||||||||
Face amount of senior convertible notes | $ 225,000,000 | ||||||||
Debt issued | $ 19,300,000 | $ 23,200,000 | $ 20,600,000 | $ 93,800,000 | |||||
Proceeds from issuance of senior convertible debt | 69,500,000 | ||||||||
Issuance costs | 2,200,000 | ||||||||
Retirement of convertible notes upon maturity | $ 68,100,000 | ||||||||
Convertible Debt | 1.75% Senior Convertible Notes | Exchange Transaction | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issued | 155,500,000 | ||||||||
Repayments of debt | $ 151,500,000 |
Debt - 1.00% Senior Convertible
Debt - 1.00% Senior Convertible Notes (2024 Notes) (Details) | 1 Months Ended | 12 Months Ended | |||||
Mar. 01, 2024 USD ($) note | Mar. 22, 2017 USD ($) | Jun. 29, 2024 USD ($) | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | Mar. 06, 2023 | Mar. 03, 2017 USD ($) | |
Debt Instrument [Line Items] | |||||||
Payments of debt issuance costs | $ 0 | $ 4,200,000 | $ 10,500,000 | ||||
Retirement of convertible notes upon maturity | $ 96,400,000 | $ 68,100,000 | $ 0 | ||||
Convertible Debt | 1.00% Senior Convertible Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on senior convertible notes | 1% | 1% | 1% | ||||
Face amount of senior convertible notes | $ 60,000,000 | $ 400,000,000 | |||||
Proceeds from issuance of senior convertible debt, after issuance costs | 451,100,000 | ||||||
Payments of debt issuance costs | $ 8,900,000 | ||||||
Number of notes converted | note | 2 | ||||||
Retirement of convertible notes upon maturity | $ 96,400,000 |
Debt - Senior Convertible Notes
Debt - Senior Convertible Notes Settlement (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||||
Jun. 03, 2022 | Mar. 02, 2022 | Nov. 22, 2021 | Sep. 02, 2021 | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Debt Instrument [Line Items] | |||||||
Debt conversion, shares issued | 10.6 | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Repayments of senior debt | $ 64.7 | $ 59 | $ 196.5 | ||||
Loss on convertible note debt modification and settlement | $ 3.1 | 6.4 | 85.9 | $ 0 | $ 0 | $ 101.8 | |
1.75% Senior Convertible Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt issued | 19.3 | 23.2 | 20.6 | 93.8 | |||
1.00% Senior Convertible Notes | |||||||
Debt Instrument [Line Items] | |||||||
Loss on convertible note debt modification and settlement | 6.4 | ||||||
1.00% Senior Convertible Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt issued | 3.1 | $ 26.8 | $ 25 | $ 181.2 | |||
Repayments of senior debt | $ 27.1 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Line of Credit - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 30, 2021 | Oct. 02, 2021 | Jun. 29, 2024 | |
Revolving Credit Facility | Wells Fargo | |||
Debt Instrument [Line Items] | |||
Proceeds from credit facility | $ 150 | ||
Repayment of credit facility | $ 150 | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing amount | $ 300 | ||
Potential increase to maximum borrowing capacity | $ 100 | ||
Fixed charge coverage ratio | 1 | ||
Credit facility, excess availability rate | 10% | ||
Credit facility, borrowing base | $ 20 | ||
Available borrowing capacity | $ 153.3 | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.85% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.35% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Sterling Overnight Interbank Average Rate (SONIA) | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.7825% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Sterling Overnight Interbank Average Rate (SONIA) | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.2825% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Euro Interbank Offered Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Euro Interbank Offered Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Canadian Dollar Offered Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Revolving Credit Facility | Senior Secured Asset-based Revolving Credit Facility | Canadian Dollar Offered Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Letter of Credit | Senior Secured Asset-based Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt outstanding | $ 4.1 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |||
Interest expense-contractual interest | $ 19.7 | $ 19.2 | $ 16.5 |
Amortization of debt issuance cost | 2.6 | 2.5 | 2.8 |
Accretion of debt discount | 4.9 | 1.6 | 0 |
Other | 3.7 | 3.8 | 4 |
Total Interest Expense | $ 30.9 | $ 27.1 | $ 23.3 |
Effective interest rate | 2.77% | 2.65% | 2.25% |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Leases [Abstract] | ||
Operating lease costs | $ 12.9 | $ 13.1 |
Cash paid for amounts included in the measurement of operating lease liabilities | 14.1 | 14.4 |
Operating ROU assets obtained in exchange for operating lease obligations | $ 7.2 | $ 7 |
Weighted-average remaining lease term | 6 years 3 months 18 days | 6 years 9 months 18 days |
Weighted-average discount rate | 5.60% | 4.80% |
Total lease payments | $ 42.8 |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2025 | $ 10.2 |
2026 | 9.1 |
2027 | 6.9 |
2028 | 4.8 |
2029 | 3.3 |
Thereafter | 8.5 |
Total lease payments | 42.8 |
Less: Interest | (7.3) |
Present value of lease liabilities | $ 35.5 |
Leases - Asset Retirement Oblig
Leases - Asset Retirement Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 4.3 | $ 4.2 |
Liabilities Incurred | 0 | 0.3 |
Liabilities Settled | (0.2) | (0.3) |
Accretion Expense | 0.1 | 0.1 |
Balance at end of period | $ 4.2 | $ 4.3 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 29, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Restructuring and Related Charges | ||||
Restructuring and related charges (benefits) | $ 13.6 | $ 12.1 | $ (0.1) | |
Fiscal 2024 Plan | ||||
Restructuring and Related Charges | ||||
Workforce reduction percentage | 6% | |||
Fiscal 2023 Plan | ||||
Restructuring and Related Charges | ||||
Percent of positions eliminated | 5% | 5% | ||
Restructuring and related charges (benefits) | $ 13.6 | |||
Fiscal 2023 Plan Phase I | ||||
Restructuring and Related Charges | ||||
Restructuring and related charges (benefits) | (0.9) | |||
Fiscal 2023 Plan Phase II | ||||
Restructuring and Related Charges | ||||
Restructuring and related charges (benefits) | $ (0.3) | |||
Other Restructuring Plans | ||||
Restructuring and Related Charges | ||||
Restructuring and related charges (benefits) | $ 12.1 | $ (0.1) |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Summary of various restructuring plans | |||
Restructuring and related charges (benefits) | $ 13.6 | $ 12.1 | $ (0.1) |
Fiscal Year 2024 Restructuring Plan | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 0 | ||
Restructuring and related charges (benefits) | 14.8 | ||
Cash Settlements | (0.2) | ||
Accrual balance at the end of the period | 14.6 | 0 | |
Fiscal Year 2024 Restructuring Plan | Network and Service Enablement | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 0 | ||
Restructuring and related charges (benefits) | 13.6 | ||
Cash Settlements | (0.2) | ||
Accrual balance at the end of the period | 13.4 | 0 | |
Fiscal Year 2024 Restructuring Plan | Optical Security and Performance Products | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 0 | ||
Restructuring and related charges (benefits) | 1.2 | ||
Cash Settlements | 0 | ||
Accrual balance at the end of the period | 1.2 | 0 | |
Fiscal 2023 Plan | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 5.8 | ||
Restructuring and related charges (benefits) | 13.6 | ||
Cash Settlements | (4.5) | ||
Accrual balance at the end of the period | 14.9 | 5.8 | |
Fiscal 2023 Plan Phase I | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 4.1 | ||
Restructuring and related charges (benefits) | (0.9) | ||
Cash Settlements | (3.2) | ||
Accrual balance at the end of the period | 0 | 4.1 | |
Fiscal 2023 Plan Phase I | Network and Service Enablement | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 3.5 | ||
Restructuring and related charges (benefits) | (0.9) | ||
Cash Settlements | (2.6) | ||
Accrual balance at the end of the period | 0 | 3.5 | |
Fiscal 2023 Plan Phase I | Optical Security and Performance Products | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 0.6 | ||
Restructuring and related charges (benefits) | 0 | ||
Cash Settlements | (0.6) | ||
Accrual balance at the end of the period | 0 | 0.6 | |
Fiscal 2023 Plan Phase II | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 1.7 | ||
Restructuring and related charges (benefits) | (0.3) | ||
Cash Settlements | (1.1) | ||
Accrual balance at the end of the period | 0.3 | 1.7 | |
Fiscal 2023 Plan Phase II | Network and Service Enablement | |||
Summary of various restructuring plans | |||
Accrual balance at the beginning of the period | 1.7 | ||
Restructuring and related charges (benefits) | (0.3) | ||
Cash Settlements | (1.1) | ||
Accrual balance at the end of the period | $ 0.3 | $ 1.7 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Income (loss) before income taxes | |||
Domestic | $ (95.8) | $ (37.6) | $ (82.6) |
Foreign | 107.4 | 98.3 | 147.7 |
Income before income taxes | $ 11.6 | $ 60.7 | $ 65.1 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Federal: | |||
Current | $ 0.3 | $ 0 | $ 0 |
Deferred | 0 | 0 | 0 |
Total federal income tax expense | 0.3 | 0 | 0 |
State: | |||
Current | 3.3 | 2.6 | (2.2) |
Deferred | 0 | 0 | 0 |
Total state income tax expense (benefit) | 3.3 | 2.6 | (2.2) |
Foreign: | |||
Current | 32.8 | 27.6 | 63.2 |
Deferred | 1 | 5 | (11.4) |
Total foreign income tax expense | 33.8 | 32.6 | 51.8 |
Total income tax expense | $ 37.4 | $ 35.2 | $ 49.6 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Reconciliation of the Company’s income tax expense at the federal statutory rate to the income tax expense at the effective tax rate | |||
Income tax expense computed at federal statutory rate | $ 2.4 | $ 12.8 | $ 13.7 |
Withholding Taxes | 5.6 | 8 | 8.7 |
U.S. inclusion of foreign earnings | 3.8 | 1.3 | 19.8 |
Internal restructuring | 1.2 | 1.2 | 10.1 |
Valuation allowance | 17.5 | 0.5 | 3.3 |
Foreign rate differential | 3.8 | 4.5 | 6.9 |
Reserves | 1.2 | 2.9 | 1.7 |
Permanent items | (0.6) | 1.1 | 0.3 |
Fair value change of the earn-out liability | (2) | (1) | 0.1 |
Impact of prior years’ taxes | 3 | (0.5) | (8.6) |
Research and experimentation benefits and other tax credits | 0 | (1.3) | (1.1) |
State taxes | 0 | 2.6 | 0.8 |
Disallowed compensations | 2 | 3.3 | 2.2 |
Senior Convertible Notes settlements | 0 | 0 | (8.3) |
Other | (0.5) | (0.2) | 0 |
Total income tax expense | $ 37.4 | $ 35.2 | $ 49.6 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Taxes (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 |
Gross deferred tax assets: | |||
Tax credit carryforwards | $ 138.2 | $ 136.4 | $ 136.7 |
Net operating loss carryforwards | 381 | 437.5 | 491.8 |
Capital loss carryforwards | 1 | 1.1 | 1 |
Inventories | 37.2 | 40.2 | 34.5 |
Accruals and reserves | 53 | 58.1 | 58.5 |
Intangibles including acquisition-related items | 510.6 | 597.5 | 603.6 |
Capitalized research costs | 312.3 | 186.7 | 100.3 |
Other | 43.5 | 44.3 | 45.7 |
Gross deferred tax assets | 1,476.8 | 1,501.8 | 1,472.1 |
Valuation allowance | (1,336) | (1,351.5) | (1,320.8) |
Deferred tax assets | 140.8 | 150.3 | 151.3 |
Gross deferred tax liabilities: | |||
Acquisition-related items | (29.4) | (30.9) | (31.9) |
Tax on unrepatriated earnings | (9.5) | (13.7) | (7.2) |
Foreign branch taxes | (14.6) | (15) | (17.8) |
Other | (16.5) | (17.7) | (17.6) |
Deferred tax liabilities | (70) | (77.3) | (74.5) |
Total net deferred tax assets | $ 70.8 | $ 73 | $ 76.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Net operating loss carryforwards | |||
Undistributed earnings of certain foreign subsidiaries | $ 15.3 | ||
Estimated additional U.S. income or foreign withholding taxes that would have to be provided if earnings of foreign subsidiaries were repatriated to the U.S. | 1.4 | ||
Increase (decrease) in deferred tax asset valuation allowances | (15.5) | $ 30.7 | $ 11.9 |
Portion of unrecognized tax benefits, if recognized, would impact the effective tax rate | 13.2 | ||
Portion of unrecognized tax benefits, if recognized, would impact the valuation allowance | 37.6 | ||
Accrued interest and penalties related to unrecognized tax benefits | 3.8 | $ 2.9 | 2.1 |
Other Restructuring | |||
Net operating loss carryforwards | |||
Foreign tax expense including reserves for uncertain tax positions | 1.2 | ||
Federal | |||
Net operating loss carryforwards | |||
Operating loss carryforwards | 1,450.7 | ||
Research and other tax credit carryforwards | 83.3 | ||
State | |||
Net operating loss carryforwards | |||
Operating loss carryforwards | 358 | ||
Research and other tax credit carryforwards | 54.7 | ||
Foreign | |||
Net operating loss carryforwards | |||
Operating loss carryforwards | $ 429.6 | ||
Foreign | Other Restructuring | |||
Net operating loss carryforwards | |||
Foreign tax expense including reserves for uncertain tax positions | $ 13.2 |
Income Taxes - Changes in Defer
Income Taxes - Changes in Deferred Tax Valuation Allowance (Details) - Deferred Tax Valuation Allowance - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $ 1,351.5 | $ 1,320.8 | $ 1,308.9 |
Additions Charged to Expenses or Other Accounts | 132.7 | 114.4 | 101.7 |
Deductions Credited to Expenses or Other Accounts | (148.2) | (83.7) | (89.8) |
Balance at End of Period | $ 1,336 | $ 1,351.5 | $ 1,320.8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 03, 2021 | |
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the period | $ 54.9 | $ 53.4 | $ 59.1 |
Additions based on tax positions related to current year | 1.2 | 2.7 | 0.4 |
Addition based on tax positions related to prior year | 0.5 | 0.1 | 2.6 |
Reduction based on tax positions related to prior year | (1.9) | (1.1) | (2.6) |
Reductions for lapse of statute of limitations | (0.2) | (0.2) | (6.1) |
Balance at the end of the period | $ 54.5 | $ 54.9 | $ 53.4 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | Sep. 30, 2022 | |
Stockholders' Equity | ||||
Repurchase of common stock (in shares) | 2,300,000 | 7,300,000 | 14,800,000 | |
Total purchase price | $ 20 | $ 84.2 | $ 235.5 | |
Remaining authorization at end of period | 214.8 | $ 234.8 | $ 67.3 | |
Accrued excise tax | $ 0.3 | |||
Series B Preferred Stock | ||||
Stockholders' Equity | ||||
Number of undesignated preferred shares authorized to be issued (in shares) | 1,000,000 | |||
2022 Repurchase Plan | Common Stock | ||||
Stockholders' Equity | ||||
Authorized amount under stock repurchase program | $ 300 | |||
Repurchase of common stock (in shares) | 2,300,000 | |||
Total purchase price | $ 20 | |||
Remaining authorization at end of period | $ 214.8 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Stockholders' Equity | |||
Repurchase of common stock (in shares) | 2.3 | 7.3 | 14.8 |
Average repurchase price per share (in dollars per share) | $ 8.70 | $ 11.49 | $ 15.91 |
Total purchase price | $ 20 | $ 84.2 | $ 235.5 |
Remaining authorization at end of period | 214.8 | 234.8 | 67.3 |
Accumulated Deficit | |||
Stockholders' Equity | |||
Total purchase price | $ 20 | $ 83.9 | $ 235.5 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 31, 2024 | Jul. 31, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Stock-Based Compensation | |||||
Shares of common stock available for grant (in shares) | 13,100,000 | ||||
Stock-based compensation capitalized to inventory | $ 1.2 | $ 1.2 | |||
Stock options exercised (in shares) | 1,200,000 | ||||
Stock option grants issued (in shares) | 0 | 0 | 0 | ||
Minimum remaining maturity period of traded options of the entity's common stock upon which implied volatility is based | 6 months | ||||
Restricted Stock Units with Market and Performance Conditions | Minimum | |||||
Stock-Based Compensation | |||||
Vesting period | 3 years | ||||
Restricted Stock Units with Market and Performance Conditions | Maximum | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
Full Value Awards - Performance shares | Minimum | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | ||||
Full Value Awards - Performance shares | Maximum | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
Employee Stock Purchase Plan | |||||
Stock-Based Compensation | |||||
Stock option grants issued (in shares) | 400,381 | 324,219 | |||
Unrecognized stock-based compensation | $ 0.2 | ||||
Full Value Awards | |||||
Stock-Based Compensation | |||||
Unrecognized stock-based compensation | $ 54.9 | ||||
Estimated amortization period | 1 year 6 months | ||||
2003 Plan | |||||
Stock-Based Compensation | |||||
Stock options and Full Value Awards issued and outstanding (in shares) | 9,100,000 | ||||
1998 Purchase Plan | |||||
Stock-Based Compensation | |||||
Shares of common stock available for grant (in shares) | 6,800,000 | ||||
Discount rate provided under purchase plan | 15% | ||||
Look-back period | 6 months |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation by Function (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 49.4 | $ 51.2 | $ 52.3 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4.9 | 4.8 | 5.2 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 8.7 | 8.6 | 8.6 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 35.8 | $ 37.8 | $ 38.5 |
Stock-Based Compensation - Full
Stock-Based Compensation - Full Value Awards Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Full Value Awards - Total | |||
Number of Shares | |||
Balance at beginning of period (in shares) | 7.5 | 6.2 | 6.3 |
Awards granted (in shares) | 4.8 | 4 | 2.8 |
Awards vested (in shares) | (2.7) | (2.4) | (2.6) |
Awards forfeited (in shares) | (0.5) | (0.3) | (0.3) |
Balance at end of period (in shares) | 9.1 | 7.5 | 6.2 |
Weighted-Average Grant Date Fair Value Per Share | |||
Balance at beginning of period (in dollars per share) | $ 15.06 | $ 15.55 | $ 13.98 |
Awards granted (in dollars per share) | 10.28 | 14.35 | 16.95 |
Awards vested (in dollars per share) | 14.96 | 15.23 | 13.38 |
Awards forfeited (in dollars per share) | 15.55 | 14.78 | 14.64 |
Balance at end of period (in dollars per share) | $ 12.51 | $ 15.06 | $ 15.55 |
Full Value Awards - Performance shares | |||
Number of Shares | |||
Balance at beginning of period (in shares) | 1.7 | 1.4 | 1.5 |
Awards granted (in shares) | 1.2 | 0.9 | 0.4 |
Awards vested (in shares) | (0.5) | (0.6) | (0.4) |
Awards forfeited (in shares) | (0.2) | 0 | (0.1) |
Balance at end of period (in shares) | 2.2 | 1.7 | 1.4 |
Full Value Awards - Performance shares | Minimum | |||
Weighted-Average Grant Date Fair Value Per Share | |||
Vesting period | 1 year | ||
Full Value Awards - Performance shares | Maximum | |||
Weighted-Average Grant Date Fair Value Per Share | |||
Vesting period | 4 years | ||
MSUs | |||
Weighted-Average Grant Date Fair Value Per Share | |||
Aggregate grant-date fair value (in dollars) | $ 13.4 | $ 11.4 | $ 7.9 |
MSUs | Minimum | |||
Weighted-Average Grant Date Fair Value Per Share | |||
Vesting period | 3 years | ||
MSUs | Maximum | |||
Weighted-Average Grant Date Fair Value Per Share | |||
Vesting period | 4 years | ||
Full Value Awards - Non-performance shares | |||
Number of Shares | |||
Balance at beginning of period (in shares) | 5.8 | 4.8 | 4.8 |
Awards granted (in shares) | 3.6 | 3.1 | 2.4 |
Awards vested (in shares) | (2.2) | (1.8) | (2.2) |
Awards forfeited (in shares) | (0.3) | (0.3) | (0.2) |
Balance at end of period (in shares) | 6.9 | 5.8 | 4.8 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
MSUs | Monte Carlo simulation | |||
Valuation Assumptions | |||
Expected volatility | 34.80% | 31.20% | 33.80% |
Average volatility of peer companies | 65.80% | 62.10% | 58.70% |
Average correlation coefficient of peer companies | 0.2305 | 0.3111 | 0.3442 |
Risk-free interest rate | 4.90% | 3.40% | 0.20% |
Employee Stock Purchase Plan | BSM | |||
Valuation Assumptions | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Expected volatility | 29.80% | 37.20% | 24.30% |
Risk-free interest rate | 5.30% | 3.80% | 0.30% |
Employee Pension and Other Be_3
Employee Pension and Other Benefit Plans - Additional Information (Details) £ in Millions | 12 Months Ended | ||||
Jun. 29, 2024 USD ($) | Jun. 29, 2024 GBP (£) | Jul. 01, 2023 USD ($) | Jul. 01, 2023 GBP (£) | Jul. 02, 2022 USD ($) | |
Employee Defined Benefit Plans | |||||
Maximum contribution by an employee, as percentage of annual compensation | 50% | 50% | |||
Maximum amount of contribution by an employee in a calendar year | $ 23,000 | ||||
Employer match of employee's contributions of the first 3% of eligible compensation (as a percent) | 100% | 100% | |||
Percentage of eligible compensation, matched 100% by employer | 3% | 3% | |||
Employer match of employee's contributions of the next 2% of eligible compensation (as a percent) | 50% | 50% | |||
Percentage of eligible compensation, matched 50% by employer | 2% | 2% | |||
Company's matching contribution to the plan | $ 5,300,000 | $ 5,400,000 | $ 5,100,000 | ||
Required contributions expected in next fiscal year | $ 0 | ||||
Minimum maturity period for investment in index-linked Gilts | 5 years | 5 years | |||
Other Post Retirement Benefit Plans | |||||
Employee Defined Benefit Plans | |||||
Benefit obligation | $ 300,000 | 400,000 | |||
Pension Benefit Plans | |||||
Employee Defined Benefit Plans | |||||
Benefit obligation | 83,700,000 | 86,100,000 | $ 95,500,000 | ||
Future amortization of losses | 200,000 | ||||
Employer contributions | 6,500,000 | 5,600,000 | |||
United Kingdom | Pension Benefit Plans | |||||
Employee Defined Benefit Plans | |||||
Employer contributions | $ 1,300,000 | £ 1 | $ 1,200,000 | £ 1 |
Employee Pension and Other Be_4
Employee Pension and Other Benefit Plans - Net Periodic Benefit Cost (Details) - Pension Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Components of the net periodic cost for the pension and benefits plans | |||
Service cost | $ 0 | $ 0 | $ 0.2 |
Interest cost | 3.3 | 2.7 | 1.6 |
Expected return on plan assets | (1.9) | (1.7) | (1.7) |
Recognized net actuarial losses (gains) | 0.1 | (0.1) | 2.9 |
Net periodic benefit cost | $ 1.5 | $ 0.9 | $ 3 |
Employee Pension and Other Be_5
Employee Pension and Other Benefit Plans - Changes in the Benefit Obligations and Plan Assets (Details) - Pension Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 86.1 | $ 95.5 | |
Service cost | 0 | 0 | $ 0.2 |
Interest cost | 3.3 | 2.7 | 1.6 |
Actuarial losses (gains) | 1.5 | (4.2) | |
Benefits paid | (6.1) | (5.6) | |
Foreign exchange impact | (1.1) | (2.3) | |
Benefit obligation at end of year | 83.7 | 86.1 | 95.5 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 31.1 | 29.3 | |
Actual return on plan assets | 0.7 | 0.2 | |
Employer contributions | 6.5 | 5.6 | |
Benefits paid | (6.1) | (5.6) | |
Foreign exchange impact | (0.2) | 1.6 | |
Fair value of plan assets at end of year | 32 | 31.1 | $ 29.3 |
Funded status | (51.7) | (55) | |
Accumulated benefit obligation | $ 83.7 | $ 86.1 |
Employee Pension and Other Be_6
Employee Pension and Other Benefit Plans - Amounts Recognized on Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Amount recognized on the Consolidated Balance Sheets at end of year: | |||
Non-current liabilities | $ 51.2 | $ 53.2 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income: | |||
Net actuarial (loss) gain | (2.1) | 2 | $ 13.9 |
Amortization of accumulated net actuarial losses (gains) | 0.1 | (0.1) | $ 2.9 |
Pension Benefit Plans | |||
Amount recognized on the Consolidated Balance Sheets at end of year: | |||
Non-current assets | 6.6 | 5.6 | |
Current liabilities | 7.5 | 7.8 | |
Non-current liabilities | 50.8 | 52.8 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income: | |||
Net actuarial (loss) gain | (2.1) | 2 | |
Amortization of accumulated net actuarial losses (gains) | 0.1 | (0.1) | |
Total recognized in other comprehensive (loss) income | $ (2) | $ 1.9 |
Employee Pension and Other Be_7
Employee Pension and Other Benefit Plans - Weighted Average Assumptions (Details) - Pension Benefit Plans | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Used to determine net periodic cost at end of year: | |||
Discount rate | 4.10% | 4.10% | 3.20% |
Expected long-term return on plan assets | 5.90% | 5.90% | 6.20% |
Rate of pension increase | 2.50% | 2.50% | 2.20% |
Used to determine benefit obligation at end of year: | |||
Discount rate | 4.10% | 4.10% | 3.20% |
Rate of pension increase | 2.50% | 2.50% | 2.20% |
Employee Pension and Other Be_8
Employee Pension and Other Benefit Plans - Assets at Fair Value and Assets Allocations (Details) - Pension Benefit Plans - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 |
Asset category | |||
Fair value of total plan assets | $ 32 | $ 31.1 | $ 29.3 |
Percentage of Plan Assets | 100% | 100% | |
Level 1 | |||
Asset category | |||
Fair value of total plan assets | $ 2.9 | $ 2.7 | |
Level 2 | |||
Asset category | |||
Fair value of total plan assets | $ 29.1 | $ 28.4 | |
Equity / Other | |||
Asset category | |||
Target Allocation | 40% | 60% | |
Fair value of total plan assets | $ 12.1 | $ 18.4 | |
Percentage of Plan Assets | 37.80% | 59.20% | |
Equity / Other | Level 1 | |||
Asset category | |||
Fair value of total plan assets | $ 0 | $ 0 | |
Equity / Other | Level 2 | |||
Asset category | |||
Fair value of total plan assets | $ 12.1 | $ 18.4 | |
Fixed income | |||
Asset category | |||
Target Allocation | 60% | 40% | |
Fair value of total plan assets | $ 17 | $ 10 | |
Percentage of Plan Assets | 53.10% | 32.10% | |
Fixed income | Level 1 | |||
Asset category | |||
Fair value of total plan assets | $ 0 | $ 0 | |
Fixed income | Level 2 | |||
Asset category | |||
Fair value of total plan assets | $ 17 | $ 10 | |
Cash | |||
Asset category | |||
Target Allocation | 0% | 0% | |
Fair value of total plan assets | $ 2.9 | $ 2.7 | |
Percentage of Plan Assets | 9.10% | 8.70% | |
Cash | Level 1 | |||
Asset category | |||
Fair value of total plan assets | $ 2.9 | $ 2.7 | |
Cash | Level 2 | |||
Asset category | |||
Fair value of total plan assets | $ 0 | $ 0 |
Employee Pension and Other Be_9
Employee Pension and Other Benefit Plans - Future Benefit Payments (Details) - Pension Benefit Plans $ in Millions | Jun. 29, 2024 USD ($) |
Fiscal Years | |
2025 | $ 8.5 |
2026 | 6 |
2027 | 5.9 |
2028 | 5.2 |
2029 | 5 |
2030-2034 | $ 23.1 |
Commitments and Contingencies -
Commitments and Contingencies - Royalty Payments (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2025 | $ 0.6 |
2026 | 0.2 |
Total | $ 0.8 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Obligations (Details) $ in Millions | 12 Months Ended |
Jun. 29, 2024 USD ($) agreement | |
Purchase Obligations | |
Legally-binding purchase commitment obligations | $ | $ 101.1 |
Typical duration of supply agreements with single or limited source vendors | 1 year |
Long-term guaranteed supply agreements | agreement | 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Financing Obligations - Santa Rosa (Details) $ in Millions | 82 Months Ended | |||
Aug. 21, 2007 USD ($) renewal_option | May 31, 2019 amendment | Jun. 29, 2024 USD ($) | Jul. 01, 2023 USD ($) | |
Santa Rosa | ||||
Financing Obligations | ||||
Net cash proceeds received from sale and lease back transaction | $ 32.2 | |||
Number of renewal options (in renewal option) | renewal_option | 2 | |||
Renewal term | 5 years | |||
Financing obligation, current | $ 0.1 | $ 0.2 | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | ||
Financing obligation, noncurrent | $ 15.7 | $ 15.8 | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities | ||
Santa Rosa | Minimum | ||||
Financing Obligations | ||||
Lease term | 1 year | |||
Santa Rosa | Maximum | ||||
Financing Obligations | ||||
Lease term | 10 years | |||
Santa Rosa Sale Leaseback Amendment | ||||
Financing Obligations | ||||
Renewal term | 10 years | |||
Lease amendments | amendment | 2 |
Commitments and Contingencies_4
Commitments and Contingencies - Future Minimum Annual Leaseback Payments (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |
2025 | $ 3.1 |
2026 | 3.1 |
2027 | 3.2 |
2028 | 2.7 |
2029 | 2.6 |
Thereafter | 8.3 |
Total minimum leaseback payments | $ 23 |
Commitments and Contingencies_5
Commitments and Contingencies - Guarantees and Outstanding Letters of Credit and Performance Bonds (Details) - USD ($) | Jun. 29, 2024 | Jul. 01, 2023 |
Loss Contingencies [Line Items] | ||
Guarantee liabilities | $ 0 | $ 0 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Contingency | 8,600,000 | |
Performance bonds | ||
Loss Contingencies [Line Items] | ||
Contingency | $ 1,900,000 |
Commitments and Contingencies_6
Commitments and Contingencies - Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Product Warranties | ||
Warranty Term for most products | 3 years | |
Changes in warranty reserve | ||
Balance as of beginning of period | $ 9 | $ 10.6 |
Provision for warranty | 1.2 | 1.6 |
Utilization of reserve | (2.8) | (1.2) |
Adjustments related to pre-existing warranties (including changes in estimates) | 0 | (2) |
Balance as of end of period | $ 7.4 | $ 9 |
Commitments and Contingencies_7
Commitments and Contingencies - Legal Proceedings (Details) £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2023 USD ($) | Jun. 29, 2024 USD ($) | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | Jul. 01, 2023 GBP (£) | Jul. 02, 2022 GBP (£) | Jul. 02, 2016 GBP (£) | Jun. 30, 2016 GBP (£) | |
Loss Contingencies [Line Items] | ||||||||
Gain on legal settlement | $ | $ 0 | $ 6.7 | $ 0 | |||||
Amendment of pension for foreign subsidiary | Judicial ruling | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount accrued | $ 6.7 | $ 6.5 | £ 5.7 | £ 5.4 | £ 5.7 | |||
Amendment of pension for foreign subsidiary | Judicial ruling | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate liability | £ | £ 5.7 | |||||||
Amendment of pension for foreign subsidiary | Judicial ruling | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate liability | £ | £ 8.4 | |||||||
Tel-Instruments Electronics Corp. Settlement | Judicial ruling | ||||||||
Loss Contingencies [Line Items] | ||||||||
Gain on legal settlement | $ | $ 7.3 | $ 7.3 |
Operating Segments and Geogra_3
Operating Segments and Geographic Information - Summary of Reportable Segments (Details) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 USD ($) segment | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | |
Information on reportable segments | |||
Number of broad business categories (segment) | segment | 2 | ||
Net revenue | $ 1,000.4 | $ 1,106.1 | $ 1,292.4 |
GAAP gross profit | $ 575.9 | $ 638.8 | $ 773.5 |
Gross margin (percent) | 57.60% | 57.80% | 59.80% |
Operating income | $ 20.8 | $ 82.4 | $ 185 |
Operating margin (percent) | 2.10% | 7.40% | 14.30% |
Segment Enablement | |||
Information on reportable segments | |||
GAAP gross profit | $ 594.5 | $ 668.8 | $ 808.7 |
Operating income | 115 | 172.5 | 286.8 |
Other Items | |||
Information on reportable segments | |||
Net revenue | 0 | 0 | 0 |
GAAP gross profit | (18.6) | (30) | (35.2) |
Operating income | (94.2) | (90.1) | (101.8) |
Network and Service Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 702 | 801.2 | 949.1 |
GAAP gross profit | $ 439.6 | $ 510.2 | $ 615.1 |
Gross margin (percent) | 62.60% | 63.70% | 64.80% |
Operating income | $ 8 | $ 61.2 | $ 147.8 |
Operating margin (percent) | 1.10% | 7.60% | 15.60% |
Network and Service Enablement | Network Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | $ 615.7 | $ 707.2 | $ 855.7 |
GAAP gross profit | $ 382.3 | $ 447.6 | $ 550.8 |
Gross margin (percent) | 62.10% | 63.30% | 64.40% |
Network and Service Enablement | Service Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | $ 86.3 | $ 94 | $ 93.4 |
GAAP gross profit | $ 57.3 | $ 62.6 | $ 64.3 |
Gross margin (percent) | 66.40% | 66.60% | 68.80% |
Optical Security and Performance Products | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | $ 298.4 | $ 304.9 | $ 343.3 |
GAAP gross profit | $ 154.9 | $ 158.6 | $ 193.6 |
Gross margin (percent) | 51.90% | 52% | 56.40% |
Operating income | $ 107 | $ 111.3 | $ 139 |
Operating margin (percent) | 35.90% | 36.50% | 40.50% |
Product | |||
Information on reportable segments | |||
Net revenue | $ 834.8 | $ 936.1 | $ 1,135.5 |
Product | Other Items | |||
Information on reportable segments | |||
Net revenue | 0 | 0 | 0 |
Product | Network and Service Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 536.4 | 631.3 | 792.7 |
Product | Network and Service Enablement | Network Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 499.1 | 588.1 | 745.1 |
Product | Network and Service Enablement | Service Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 37.3 | 43.2 | 47.6 |
Product | Optical Security and Performance Products | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 298.4 | 304.8 | 342.8 |
Service | |||
Information on reportable segments | |||
Net revenue | 165.6 | 170 | 156.9 |
Service | Other Items | |||
Information on reportable segments | |||
Net revenue | 0 | 0 | 0 |
Service | Network and Service Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 165.6 | 169.9 | 156.4 |
Service | Network and Service Enablement | Network Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 116.6 | 119.1 | 110.6 |
Service | Network and Service Enablement | Service Enablement | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | 49 | 50.8 | 45.8 |
Service | Optical Security and Performance Products | Segment Enablement | |||
Information on reportable segments | |||
Net revenue | $ 0 | $ 0.1 | $ 0.5 |
Operating Segments and Geogra_4
Operating Segments and Geographic Information - Reconciliation to Gross Profit and Operating Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Corporate reconciling items impacting gross profit: | |||
Total segment gross profit | $ 575.9 | $ 638.8 | $ 773.5 |
Stock-based compensation | (49.4) | (51.2) | (52.3) |
Amortization of intangibles | (6.3) | (8.7) | (9.7) |
GAAP gross profit | 575.9 | 638.8 | 773.5 |
Corporate reconciling items impacting operating income: | |||
Total segment operating income | 20.8 | 82.4 | 185 |
Stock-based compensation | (49.4) | (51.2) | (52.3) |
Amortization of intangibles | (6.3) | (8.7) | (9.7) |
Change in fair value of contingent liability | 9.5 | 4.6 | 0 |
Restructuring and related (charges) benefits | (13.6) | (12.1) | 0.1 |
GAAP operating income | 20.8 | 82.4 | 185 |
Acquisition and integration related charges | 18.1 | 2.5 | 5.1 |
Gain from litigation settlement | 0 | 6.7 | 0 |
Net losses primarily related to long-lived assets | 2.5 | 2.3 | 4.5 |
Segment | |||
Corporate reconciling items impacting gross profit: | |||
Total segment gross profit | 594.5 | 668.8 | 808.7 |
GAAP gross profit | 594.5 | 668.8 | 808.7 |
Corporate reconciling items impacting operating income: | |||
Total segment operating income | 115 | 172.5 | 286.8 |
GAAP operating income | 115 | 172.5 | 286.8 |
Non-segment | |||
Corporate reconciling items impacting gross profit: | |||
Total segment gross profit | (18.6) | (30) | (35.2) |
GAAP gross profit | (18.6) | (30) | (35.2) |
Corporate reconciling items impacting operating income: | |||
Total segment operating income | (94.2) | (90.1) | (101.8) |
Restructuring and related (charges) benefits | (13.6) | (12.1) | 0.1 |
GAAP operating income | (94.2) | (90.1) | (101.8) |
Non-segment | Corporate reconciling items impacting gross profit | |||
Corporate reconciling items impacting gross profit: | |||
Stock-based compensation | (4.9) | (4.8) | (5.2) |
Amortization of intangibles | (13.8) | (24.6) | (30) |
Other benefits (charges) unrelated to core operating performance | 0.1 | (0.6) | 0 |
Corporate reconciling items impacting operating income: | |||
Stock-based compensation | (4.9) | (4.8) | (5.2) |
Amortization of intangibles | (13.8) | (24.6) | (30) |
Non-segment | Corporate reconciling items impacting operating income | |||
Corporate reconciling items impacting gross profit: | |||
Stock-based compensation | (49.4) | (51.2) | (52.3) |
Amortization of intangibles | (20.1) | (33.3) | (39.7) |
Corporate reconciling items impacting operating income: | |||
Stock-based compensation | (49.4) | (51.2) | (52.3) |
Amortization of intangibles | (20.1) | (33.3) | (39.7) |
Change in fair value of contingent liability | 9.5 | 4.6 | (0.3) |
Other (charges) benefits unrelated to core operating performance | $ (20.6) | $ 1.9 | $ (9.6) |
Operating Segments and Geogra_5
Operating Segments and Geographic Information - Net Revenue by Geographic Region (Details) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 USD ($) region | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of geographic regions in which entity operates | region | 3 | ||
Net revenue | $ 1,000.4 | $ 1,106.1 | $ 1,292.4 |
Total Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 390.7 | 438.1 | 485.7 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 325.4 | 362.9 | 388.9 |
Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 65.3 | 75.2 | 96.8 |
Total Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 346.5 | 377.5 | 461.7 |
Greater China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 194 | 210.9 | 256.4 |
Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 152.5 | 166.6 | 205.3 |
EMEA: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 263.2 | 290.5 | 345 |
Product | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 834.8 | 936.1 | 1,135.5 |
Product | Total Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 315.3 | 363.8 | 414.7 |
Product | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 265 | 303.5 | 332.5 |
Product | Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 50.3 | 60.3 | 82.2 |
Product | Total Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 314.6 | 343.7 | 432.7 |
Product | Greater China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 188.1 | 203.5 | 247.5 |
Product | Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 126.5 | 140.2 | 185.2 |
Product | EMEA: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 204.9 | 228.6 | 288.1 |
Service | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 165.6 | 170 | 156.9 |
Service | Total Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 75.4 | 74.3 | 71 |
Service | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 60.4 | 59.4 | 56.4 |
Service | Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 15 | 14.9 | 14.6 |
Service | Total Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 31.9 | 33.8 | 29 |
Service | Greater China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 5.9 | 7.4 | 8.9 |
Service | Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 26 | 26.4 | 20.1 |
Service | EMEA: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 58.3 | $ 61.9 | $ 56.9 |
Operating Segments and Geogra_6
Operating Segments and Geographic Information - Customer Concentration Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 1,000.4 | $ 1,106.1 | $ 1,292.4 |
Operating Segments and Geogra_7
Operating Segments and Geographic Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Information on reportable segments | |||
Net revenue | $ 1,000.4 | $ 1,106.1 | $ 1,292.4 |
Customer A | Customer Concentration Risk | |||
Information on reportable segments | |||
Net revenue | $ 154.1 | $ 157.7 | $ 178.4 |
Operating Segments and Geogra_8
Operating Segments and Geographic Information - Property, Plant and Equipment by Geographic Region (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jul. 01, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | $ 228.2 | $ 243 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 165 | 166.9 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 1.1 | 1.3 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 24.1 | 33.6 |
Other Asia-Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 5.1 | 4 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | 20.3 | 24.6 |
Other EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property, plant and equipment, net | $ 12.6 | $ 12.6 |
Government Assistance (Details)
Government Assistance (Details) $ in Millions | 12 Months Ended |
Jun. 29, 2024 USD ($) | |
Government Assistance [Line Items] | |
Government Assistance, Expense, Decrease (Increase), Statement of Income or Comprehensive Income [Extensible Enumeration] | Research and development |
Government Assistance, Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepayments and other current assets |
Public Wireless Supply Chain Innovation Fund Grant | |
Government Assistance [Line Items] | |
Government assistance receivables | $ 21.7 |
Government assistance, transaction duration | 3 years |
Grant spending | $ 5.8 |
Public Wireless Supply Chain Innovation Fund Grant | Software License Fees | |
Government Assistance [Line Items] | |
Grant spending | 4 |
Public Wireless Supply Chain Innovation Fund Grant | Management/Administration Fees | |
Government Assistance [Line Items] | |
Grant spending | 1.8 |
VALOR Grant | |
Government Assistance [Line Items] | |
Government assistance expense | 1.6 |
Government assistance, asset, decrease | 1.3 |
Government assistance, cash reimbursement | 0.3 |
Government assistance receivables | 2.6 |
Other Government Assistance | |
Government Assistance [Line Items] | |
Government assistance expense | 5.3 |
Government assistance receivables | $ 6.9 |