Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 28, 2013 | Oct. 26, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'JDS UNIPHASE CORP /CA/ | ' |
Entity Central Index Key | '0000912093 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-28 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 232,837,321 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' |
Net revenue | $429 | $420.90 |
Cost of sales | 232.4 | 231.2 |
Amortization of acquired technologies | 11.4 | 17.1 |
Gross profit | 185.2 | 172.6 |
Operating expenses: | ' | ' |
Research and development | 69.6 | 61.6 |
Selling, general and administrative | 107.1 | 104.7 |
Amortization of other intangibles | 2.7 | 3.5 |
Restructuring and related (benefits) charges | -0.8 | 2.7 |
Total operating expenses | 178.6 | 172.5 |
Income from operations | 6.6 | 0.1 |
Interest and other income (expense), net | -0.6 | -0.4 |
Interest expense | -5.2 | -6.1 |
Income (loss) from continuing operations before income taxes | 0.8 | -6.4 |
Provision for income taxes | 0.5 | 3.4 |
Income (loss) from continuing operations, net of tax | 0.3 | -9.8 |
Loss from discontinued operations, net of tax | ' | -1.8 |
Net income (loss) | $0.30 | ($11.60) |
Basic net income (loss) per share from: | ' | ' |
Continuing operations (in dollars per share) | $0 | ($0.04) |
Discontinued operations (in dollars per share) | ' | ($0.01) |
Net income (loss) (in dollars per share) | $0 | ($0.05) |
Diluted net income (loss) per share from: | ' | ' |
Continuing operations (in dollars per share) | $0 | ($0.04) |
Discontinued operations (in dollars per share) | ' | ($0.01) |
Net income (loss) (in dollars per share) | $0 | ($0.05) |
Shares used in per share calculation: | ' | ' |
Basic (in shares) | 235.3 | 232.8 |
Diluted (in shares) | 239.6 | 232.8 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ' | ' |
Net income (loss) | $0.30 | ($11.60) |
Unrealized gains and losses on investments, net of tax: | ' | ' |
Unrealized holding gains (losses) arising during period | 0.3 | 0.4 |
Less: reclassification adjustments included in net loss | ' | -0.1 |
Net change in cumulative translation adjustments, net of tax | 10.9 | 3.3 |
Net change in other comprehensive income (loss) | 11.2 | 3.6 |
Comprehensive income (loss) | $11.50 | ($8) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $449.30 | $281 |
Short-term investments | 607.8 | 205.2 |
Restricted cash | 30.2 | 29.7 |
Accounts receivable, net (Note 6) | 292.9 | 273.3 |
Inventories, net | 138.5 | 145.8 |
Prepayments and other current assets | 100.8 | 95.3 |
Total current assets | 1,619.50 | 1,030.30 |
Property, plant and equipment, net | 244.8 | 247 |
Goodwill | 118.1 | 115.1 |
Intangibles, net | 138 | 149.7 |
Deferred income taxes | 159 | 155.5 |
Other non-current assets | 27.5 | 17.6 |
Total assets | 2,306.90 | 1,715.20 |
Current liabilities: | ' | ' |
Accounts payable | 127.8 | 97.7 |
Accrued payroll and related expenses | 64.8 | 77 |
Income taxes payable | 18.2 | 18.7 |
Deferred revenue | 72.9 | 71.9 |
Accrued expenses | 35.4 | 37.1 |
Other current liabilities | 41.7 | 45.3 |
Total current liabilities | 360.8 | 347.7 |
Long-term debt | 518.2 | ' |
Other non-current liabilities | 207.6 | 206.2 |
Commitments and contingencies (Note 16) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred Stock, $0.001 par value; 1 million shares authorized; 1 share at September 28, 2013 and June 29, 2013, issued and outstanding | ' | ' |
Common Stock, $0.001 par value; 1 billion shares authorized; 233 million shares at September 28, 2013 and 237 million shares at June 29, 2013, issued and outstanding | 0.2 | 0.2 |
Additional paid-in capital | 69,907.60 | 69,760.10 |
Accumulated deficit | -68,707.30 | -68,607.60 |
Accumulated other comprehensive income | 19.8 | 8.6 |
Total stockholders' equity | 1,220.30 | 1,161.30 |
Total liabilities and stockholders' equity | $2,306.90 | $1,715.20 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued | 1 | 1 |
Preferred Stock, shares outstanding | 1 | 1 |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, shares issued | 233,000,000 | 237,000,000 |
Common Stock, shares outstanding | 233,000,000 | 237,000,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $0.30 | ($11.60) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation expense | 17.8 | 17 |
Amortization of acquired technologies and other intangibles | 14.1 | 20.8 |
Stock-based compensation | 15.7 | 12.7 |
Amortization of debt issuance costs and accretion of debt discount | 3.3 | 4.5 |
Other | 2 | 2.4 |
Changes in operating assets and liabilities, net of impact of acquisition of business: | ' | ' |
Accounts receivable | -18.6 | 34.8 |
Inventories | 2.4 | 0.8 |
Other current and non-current assets | -4.4 | -12.7 |
Accounts payable | 29.5 | -0.7 |
Deferred revenue, current and non-current | 1.7 | -7.3 |
Deferred taxes, net | -4.9 | -1.9 |
Accrued payroll and related expenses | -22.8 | -14 |
Accrued expenses and other current and non-current liabilities | -6.6 | -1.7 |
Net cash provided by operating activities | 29.5 | 43.1 |
INVESTING ACTIVITIES: | ' | ' |
Purchases of available-for-sale investments | -470.5 | -147.8 |
Maturities of available-for-sale investments | 46.8 | 85.3 |
Sales of available-for-sale investments | 25.7 | 17.3 |
Changes in restricted cash | -0.5 | -0.4 |
Acquisition of business, net of cash acquired | -0.1 | -9.1 |
Acquisition of property and equipment | -12.4 | -17.8 |
Proceeds from the sale of assets | 0.1 | ' |
Net cash used in investing activities | -410.9 | -72.5 |
FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of senior convertible debt | 650 | ' |
Payment of debt issuance costs | -13.5 | ' |
Repurchase and retirement of common stock | -100 | ' |
Redemption of senior convertible debt | ' | -47.8 |
Payment of financing obligations | -0.3 | -0.2 |
Proceeds from exercise of employee stock options and employee stock purchase plan | 11.6 | 6.9 |
Net cash provided (used in) by financing activities | 547.8 | -41.1 |
Effect of exchange rate changes on cash and cash equivalents | 1.9 | 2 |
Increase (decrease) in cash and cash equivalents | 168.3 | -68.5 |
Cash and cash equivalents at beginning of period | 281 | 401.1 |
Cash and cash equivalents at end of period | $449.30 | $332.60 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Sep. 28, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
Note 1. Basis of Presentation | |
The financial information for JDS Uniphase Corporation (“JDSU,” also referred to as “the Company”) as of September 28, 2013 and for the three months ended September 28, 2013 and September 29, 2012 is unaudited, and includes all normal and recurring adjustments Company management (“Management”) considers necessary for a fair statement of the financial information set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 29, 2013. | |
The balance sheet as of June 29, 2013 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 28, 2013 and September 29, 2012 may not be indicative of results for the year ending June 28, 2014 or any future periods. | |
Fiscal Years | |
The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30th. The Company’s fiscal 2014 is a 52-week year ending on June 28, 2014. The Company’s fiscal 2013 was a 52-week year ending on June 29, 2013. | |
Principles of Consolidation | |
The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. | |
Fiscal 2013 Out-of-Period Adjustments | |
During the three months ended September 29, 2012, the Company recorded out-of-period adjustments primarily related to the cost of sales in fiscal year 2011. The impact of the corrections reduced the net loss by $1.9 million for the three months ended September 29, 2012. Management and the Audit Committee concluded these errors, both individually and in aggregate, were not material to any prior year financial statements and the impact of correcting these errors in fiscal 2013 was not material to the full year fiscal 2013 financial statements. | |
Discontinued Operations | |
During the second quarter of fiscal 2013, the Company closed the sale of its hologram business (“Hologram Business”) for $11.5 million in cash. The Consolidated Statements of Operations reflect the Hologram Business as discontinued operations as described in “Note 18. Discontinued Operations.” Unless noted otherwise, discussion in the Notes to Consolidated Financial Statements pertain to continuing operations. | |
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 affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenue and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and on various assumptions about the future believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information. | |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 3 Months Ended |
Sep. 28, 2013 | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | ' |
Note 2. Recently Issued Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for the Company in the first quarter of fiscal 2015. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. | |
In March 2013, FASB issued authoritative guidance that resolves the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This guidance will be effective for the Company beginning in the first quarter of fiscal 2015. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements, absent any material transactions involving the derecognition of subsidiaries or groups of assets within a foreign entity. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Earnings Per Share | ' | |||||||
Earnings Per Share | ' | |||||||
Note 3. Earnings Per Share | ||||||||
The following table sets forth the computation of basic and diluted net loss per share (in millions, except per share data): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Income (loss) from continuing operations, net of tax | $ | 0.3 | $ | (9.8 | ) | |||
Income (loss) from discontinued operations, net of tax | — | (1.8 | ) | |||||
Net income (loss) | $ | 0.3 | $ | (11.6 | ) | |||
Denominator: | ||||||||
Weighted-average number of common shares outstanding: | ||||||||
Basic | 235.3 | 232.8 | ||||||
Effect of dilutive securities from stock-based benefit plans | 4.3 | — | ||||||
Diluted | 239.6 | 232.8 | ||||||
Basic net income (loss) per share from: | ||||||||
Continuing operations | $ | 0 | $ | (0.04 | ) | |||
Discontinued operations | — | (0.01 | ) | |||||
Net income (loss) | $ | 0 | $ | (0.05 | ) | |||
Diluted net income (loss) per share from: | ||||||||
Continuing operations | $ | 0 | $ | (0.04 | ) | |||
Discontinued operations | — | (0.01 | ) | |||||
Net income (loss) | $ | 0 | $ | (0.05 | ) | |||
As the Company incurred a net loss for the three months ended September 29, 2012, potential dilutive securities from employee stock options, employee stock purchase plan (“ESPP”) and Restricted Stock Units (“RSUs”) have been excluded from the diluted net loss per share computations as their effects were deemed anti-dilutive. | ||||||||
The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) per share because their effect would have been anti-dilutive (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 (1) | 2012 (2) | |||||||
Employee stock options and ESPP | 1.5 | 8.5 | ||||||
RSUs | 0.5 | 8.5 | ||||||
Total potentially dilutive securities | 2 | 17 | ||||||
(1) The Company’s 0.625% Senior Convertible Notes are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in- the-money” conversion benefit feature at the conversion price above $18.83 per share is payable in cash, shares of the Company’s common stock or a combination of both. Refer to “Note 10. Debts and Letters of Credit” for more details. | ||||||||
(2) The Company’s 1% Senior Convertible Notes are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $30.30 per share is payable in shares of the Company’s common stock or cash. Refer to “Note 10. Debts and Letters of Credit” for more details. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||
Note 4. Accumulated Other Comprehensive Income | ||||||||||||||
The Company’s accumulated other comprehensive income consists of the accumulated net unrealized gains and losses on available-for-sale investments, foreign currency translation adjustments and defined benefit obligations. | ||||||||||||||
For the three months ended September 28, 2013, the changes in accumulated other comprehensive income by component net of tax were as follows (in millions): | ||||||||||||||
Unrealized | ||||||||||||||
losses on | Foreign currency | Defined benefit | ||||||||||||
available-for- | translation | obligation, net | ||||||||||||
sale investments | adjustments | of tax (1) | Total | |||||||||||
Beginning balance as of June 29, 2013 | $ | (3.1 | ) | $ | 16.4 | $ | (4.7 | ) | $ | 8.6 | ||||
Other comprehensive income before reclassification adjustments | 0.3 | 10.9 | — | 11.2 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | ||||||||||
Net current-period other comprehensive income | 0.3 | 10.9 | — | 11.2 | ||||||||||
Ending balance as of September 28, 2013 | $ | (2.8 | ) | $ | 27.3 | $ | (4.7 | ) | $ | 19.8 | ||||
(1) Refer to “Note 15. Employee Defined Benefit Plan” for more details on the computation of net periodic cost for pension plans. |
Mergers_and_Acquisitions
Mergers and Acquisitions | 3 Months Ended | ||||
Sep. 28, 2013 | |||||
Mergers and Acquisitions | ' | ||||
Mergers and Acquisitions | ' | ||||
Note 5. Mergers and Acquisitions | |||||
Arieso Ltd.(“Arieso”) | |||||
On March 7, 2013 (“Arieso Closing Date”), the Company completed the acquisition of Arieso, a privately-held company headquartered in the United Kingdom. Arieso is a provider of location-aware software solutions that enable mobile network operators to boost 2G, 3G and 4G/Long Term evolution (“LTE”) network performance and enrich the mobile subscriber experience. | |||||
Arieso brings high-caliber mobile software engineering expertise to the Company to address the rapidly growing deployment of small cells and challenges associated with limited spectrum capacity. Utilized by leading wireless network operators and equipment manufacturers, Arieso’s solutions locate, store and analyze data from billions of mobile connection events that translate into rich intelligence, which help enable mobile operators to optimize network performance, improve customer experience and create new revenue-generating services. Arieso was integrated in the Company’s Network and Service Enablement segment (“NSE”), which was referred to as the Communications Test and Measurement segment (“CommTest”) prior to the first quarter of fiscal 2014. Refer to “Note 17. Operating Segments” for more details. | |||||
The Company acquired all outstanding shares of Arieso for approximately $89.7 million in cash, subject to holdback payments of approximately $12.8 million which are reserved for potential breaches of representations and warranties. The holdback payments, minus any deductions for actual or pending claims, will be released more than one year after the Arieso Closing Date. | |||||
The Company accounted for the transaction in accordance with the authoritative guidance on business combinations; therefore, the tangible and intangible assets acquired and liabilities assumed were recorded at fair value on the acquisition date. | |||||
The purchase price was allocated as follows (in millions): | |||||
Net tangible assets acquired | $ | 0.2 | |||
Intangible assets acquired: | |||||
Developed technology | 32.8 | ||||
Customer relationships | 14.5 | ||||
Order backlog | 1.4 | ||||
Goodwill | 40.8 | ||||
Total purchase price | $ | 89.7 | |||
The amounts above are considered preliminary and are subject to change once the Company receives certain information it believes is necessary to finalize its determination of the fair value of assets acquired and liabilities assumed under the acquisition. | |||||
The following table summarizes the components of the tangible assets acquired at fair value (in millions): | |||||
Cash | $ | 4.1 | |||
Accounts receivable | 8.4 | ||||
Property and equipment | 0.6 | ||||
Accounts payable | (0.3 | ) | |||
Accrued expenses, net of other assets | (1.4 | ) | |||
Employee related liabilities | (1.4 | ) | |||
Deferred revenue | (1.7 | ) | |||
Deferred tax liabilities, net | (8.1 | ) | |||
Net tangible assets acquired | $ | 0.2 | |||
Acquired intangible assets are classified as Level 3 assets for which fair value is derived from valuation based on inputs that are unobservable and significant to the overall fair value measurement. The fair value of acquired developed technology, customer relationships and order backlog was determined based on an income approach using the discounted cash flow method. The acquired developed technology and customer relationship intangible assets are being amortized over their estimated useful lives of five years. Order backlog was fully amortized in fiscal 2013. | |||||
The goodwill arising from this acquisition is primarily attributed to sales of future products and services and the assembled workforce of Arieso. Goodwill was assigned to the NSE segment and is not deductible for tax purposes. Goodwill is not being amortized but is reviewed annually for impairment or more frequently if impairment indicators arise, in accordance with authoritative guidance. | |||||
In accordance with the authoritative guidance, the Company expensed $1.8 million of acquisition-related costs incurred in fiscal 2013 as Selling, general and administrative expenses in the Company’s Consolidated Statement of Operations. | |||||
GenComm Co., Ltd. (“GenComm”) | |||||
On August 17, 2012 (“GenComm Closing Date”), the Company completed the acquisition of Seoul, South Korea-based GenComm, a provider of test and measurement solutions for troubleshooting, installation and maintenance of wireless base stations and repeaters. The Company acquired tangible and intangible assets and assumed liabilities of GenComm for a total purchase price of approximately $15.2 million in cash, including holdback payments of approximately $3.8 million which are reserved for potential breaches of representations and warranties. The holdback payments, minus any deductions for actual or pending claims, will be released more than one year after the GenComm Closing Date. After the GenComm Closing Date, GenComm was integrated in the Company’s NSE segment. | |||||
The Company accounted for the transaction in accordance with the authoritative guidance on business combinations; therefore, the tangible and intangible assets acquired and liabilities assumed were recorded at fair value on the acquisition date. | |||||
The purchase price was allocated as follows (in millions): | |||||
Net tangible assets acquired | $ | 5.9 | |||
Intangible assets acquired: | |||||
Developed technology | 3.2 | ||||
Customer relationships | 0.2 | ||||
Order backlog | 0.2 | ||||
Goodwill | 5.7 | ||||
Total purchase price | $ | 15.2 | |||
Acquired intangible assets are classified as Level 3 assets for which fair value is derived from valuation based on inputs that are unobservable and significant to the overall fair value measurement. The fair value of acquired developed technology, customer relationships and order backlog was determined based on an income approach using the discounted cash flow method. The acquired developed technology and customer relationship intangible assets are being amortized over their estimated useful lives of four years. Order backlog was fully amortized in fiscal 2013. | |||||
The goodwill arising from this acquisition is primarily attributed to sales of future products and services and the assembled workforce of GenComm. Goodwill has been assigned to the NSE segment and is not deductible for tax purposes. Goodwill is not being amortized but is reviewed annually for impairment or more frequently if impairment indicators arise, in accordance with authoritative guidance. |
Balance_Sheet_and_Other_Detail
Balance Sheet and Other Details | 3 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Balance Sheet and Other Details | ' | |||||||||||||
Balance Sheet and Other Details | ' | |||||||||||||
Note 6. Balance Sheet and Other Details | ||||||||||||||
Accounts Receivable Reserves and Allowances | ||||||||||||||
The activities and balances for allowance for doubtful accounts and allowance for sales returns were as follows (in millions): | ||||||||||||||
June 29, | Charged to Costs | September 28, | ||||||||||||
2013 | and Expenses | Deduction (1) | 2013 | |||||||||||
Allowance for doubtful accounts | $ | 2.1 | $ | 0.5 | $ | (0.2 | ) | $ | 2.4 | |||||
Allowance for sales returns | 0.1 | — | (0.1 | ) | — | |||||||||
Total accounts receivable reserves | $ | 2.2 | $ | 0.5 | $ | (0.3 | ) | $ | 2.4 | |||||
(1) Write-off of uncollectible accounts, net of recoveries. | ||||||||||||||
Inventories, Net | ||||||||||||||
Inventories, net are stated at the lower of cost or market, and include material, labor, and manufacturing overhead costs. The components of Inventories, net were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Finished goods | $ | 69 | $ | 85.7 | ||||||||||
Work in process | 37.7 | 37 | ||||||||||||
Raw materials and purchased parts | 31.8 | 23.1 | ||||||||||||
Inventories, net | $ | 138.5 | $ | 145.8 | ||||||||||
Prepayments and Other Current Assets | ||||||||||||||
The components of Prepayments and other current assets were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Prepayments | $ | 36.4 | $ | 36 | ||||||||||
Advances to contract manufacturers | 13.7 | 14.6 | ||||||||||||
Deferred income tax | 4.9 | 3.9 | ||||||||||||
Refundable income taxes | 2.3 | 2.3 | ||||||||||||
Other receivables | 31.5 | 26.1 | ||||||||||||
Assets held for sale | 2.3 | 2.2 | ||||||||||||
Other current assets | 9.7 | 10.2 | ||||||||||||
Prepayments and other current assets | $ | 100.8 | $ | 95.3 | ||||||||||
At September 28, 2013 and June 29, 2013, land and buildings owned in Switzerland met the held for sale criteria in accordance with the authoritative guidance. Accordingly, the Company has classified the land and buildings as an asset held for sale which is recorded as a component of Prepayments and other current assets in the Consolidated Balance Sheets. | ||||||||||||||
Property, Plant and Equipment, Net | ||||||||||||||
The components of Property, plant and equipment, net were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Land | $ | 14.7 | $ | 14.6 | ||||||||||
Buildings and improvements | 35.6 | 34.9 | ||||||||||||
Machinery and equipment | 464.5 | 453.8 | ||||||||||||
Furniture, fixtures, software and office equipment | 139.9 | 132.9 | ||||||||||||
Leasehold improvements | 94.2 | 92.7 | ||||||||||||
Construction-in-progress | 12 | 14.9 | ||||||||||||
760.9 | 743.8 | |||||||||||||
Less: Accumulated depreciation | (516.1 | ) | (496.8 | ) | ||||||||||
Property, plant and equipment, net | $ | 244.8 | $ | 247 | ||||||||||
At September 28, 2013 and June 29, 2013, property, plant and equipment, net included $21.4 million and $21.8 million, respectively, in land and buildings related to the Santa Rosa and Eningen Transactions (as defined in “Note 16. Commitments and Contingencies” below) accounted for under the financing method. Refer to “Note 16. Commitments and Contingencies” for more detail. | ||||||||||||||
During the three months ended September 28, 2013 and September 29, 2012, the Company recorded $17.8 million and $16.9 million of depreciation expense, respectively. | ||||||||||||||
Other Current Liabilities | ||||||||||||||
The components of Other current liabilities were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Deferred compensation plan | $ | 4.5 | $ | 4.2 | ||||||||||
Warranty accrual | 5.9 | 6 | ||||||||||||
VAT liabilities | 5.3 | 5.6 | ||||||||||||
Restructuring accrual | 7.8 | 10.3 | ||||||||||||
Current notes payable | 2 | 2 | ||||||||||||
Other | 16.2 | 17.2 | ||||||||||||
Other current liabilities | $ | 41.7 | $ | 45.3 | ||||||||||
Other Non-Current Liabilities | ||||||||||||||
The components of Other non-current liabilities were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Pension accrual and post-employment benefits | $ | 95.7 | $ | 92 | ||||||||||
Deferred taxes | 9.8 | 11 | ||||||||||||
Restructuring accrual | 5.3 | 6.2 | ||||||||||||
Financing obligation | 32.3 | 32.4 | ||||||||||||
Non-current income taxes payable | 14.1 | 13.4 | ||||||||||||
Asset retirement obligations | 8.8 | 8.8 | ||||||||||||
Long-term deferred revenue | 25.8 | 25.8 | ||||||||||||
Other | 15.8 | 16.6 | ||||||||||||
Other non-current liabilities | $ | 207.6 | $ | 206.2 |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 3 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Investments and Fair Value Measurements | ' | |||||||||||||
Investments and Fair Value Measurements | ' | |||||||||||||
Note 7. Investments and Fair Value Measurements | ||||||||||||||
The Company’s investments in marketable debt and equity securities were primarily classified as available-for-sale investments. | ||||||||||||||
At September 28, 2013, the Company’s available-for-sale securities were as follows (in millions): | ||||||||||||||
Amortized | Gross | Gross | ||||||||||||
Cost / Carrying | Unrealized | Unrealized | Estimated | |||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Debt securities: | ||||||||||||||
U.S. treasuries | $ | 50.5 | $ | — | $ | — | $ | 50.5 | ||||||
U.S agencies | 119.3 | 0.1 | — | 119.4 | ||||||||||
Municipal bonds and sovereign debt instruments | 20.9 | — | — | 20.9 | ||||||||||
Asset-backed securities | 40.9 | — | (0.3 | ) | 40.6 | |||||||||
Corporate securities | 456.1 | 0.3 | (0.1 | ) | 456.3 | |||||||||
Total debt available-for-sale securities | $ | 687.7 | $ | 0.4 | $ | (0.4 | ) | $ | 687.7 | |||||
The Company generally classifies debt securities as cash equivalents, short-term investments or other non-current assets based on the stated maturities; however, certain securities with stated maturities of longer than twelve months which are highly liquid and available to support current operations are classified as current assets. As of September 28, 2013, of the total estimated fair value, $83.6 million was classified as cash equivalents, $603.3 million was classified as short-term investments and $0.8 million was classified as other non-current assets. | ||||||||||||||
In addition to the amounts presented above, at September 28, 2013, the Company’s short-term investments classified as trading securities related to the deferred compensation plan were $4.5 million, of which $0.8 million was invested in debt securities, $0.4 million was invested in money market instruments and funds and $3.3 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net. | ||||||||||||||
During the three months ended September 28, 2013 and September 29, 2012, the Company recorded no other-than-temporary impairment charges. | ||||||||||||||
At September 28, 2013, the Company’s total gross unrealized losses on available-for-sale securities, aggregated by type of investment instrument, were as follows (in millions): | ||||||||||||||
Less than 12 | Greater than 12 | Total | ||||||||||||
Months | Months | |||||||||||||
Asset-backed securities | $ | — | $ | 0.3 | $ | 0.3 | ||||||||
Corporate securities | 0.1 | — | 0.1 | |||||||||||
Total gross unrealized losses | $ | 0.1 | $ | 0.3 | $ | 0.4 | ||||||||
At September 28, 2013, contractual maturities of the Company’s debt securities classified as available-for-sale securities were as follows (in millions): | ||||||||||||||
Amortized | ||||||||||||||
Cost / Carrying | Estimated | |||||||||||||
Cost | Fair Value | |||||||||||||
Amounts maturing in less than 1 year | $ | 479 | $ | 479 | ||||||||||
Amounts maturing in 1 - 5 years | 207.7 | 207.9 | ||||||||||||
Amounts maturing in more than 5 years | 1 | 0.8 | ||||||||||||
Total debt available-for-sale securities | $ | 687.7 | $ | 687.7 | ||||||||||
At June 29, 2013, the Company’s available-for-sale securities were as follows (in millions): | ||||||||||||||
Amortized | Gross | Gross | ||||||||||||
Cost / Carrying | Unrealized | Unrealized | Estimated | |||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Debt securities: | ||||||||||||||
U.S. treasuries | $ | 12 | $ | — | $ | — | $ | 12 | ||||||
U.S. agencies | 52.4 | — | — | 52.4 | ||||||||||
Municipal bonds and sovereign debt instruments | 12.7 | — | — | 12.7 | ||||||||||
Asset-backed securities | 15.5 | — | (0.3 | ) | 15.2 | |||||||||
Corporate securities | 135.1 | 0.7 | (0.1 | ) | 135.7 | |||||||||
Total debt available-for-sale securities | $ | 227.7 | $ | 0.7 | $ | (0.4 | ) | $ | 228 | |||||
The Company generally classifies debt securities as cash equivalents, short-term investments or other non-current assets based on the stated maturities; however, certain securities with stated maturities of longer than twelve months which are highly liquid and available to support current operations are classified as current assets. As of June 29, 2013, of the total estimated fair value, $26.2 million was classified as cash equivalents, $201.0 million was classified as short-term investments and $0.8 million was classified as other non-current assets. | ||||||||||||||
In addition to the amounts presented above, at June 29, 2013, the Company’s short-term investments classified as trading securities related to the deferred compensation plan were $4.2 million, of which $0.8 million was invested in debt securities, $0.3 million was invested in money market instruments and funds and $3.1 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net. | ||||||||||||||
At June 29, 2013, the Company’s gross unrealized losses on available-for-sale securities, aggregated by type of investment instrument, were as follows (in millions): | ||||||||||||||
Less than | Greater than | |||||||||||||
12 Months | 12 Months | Total | ||||||||||||
Asset-backed securities | $ | — | $ | 0.3 | $ | 0.3 | ||||||||
Corporate securities | 0.1 | — | 0.1 | |||||||||||
Total gross unrealized losses | $ | 0.1 | $ | 0.3 | $ | 0.4 | ||||||||
Fair Value Measurements | ||||||||||||||
Assets measured at fair value at September 28, 2013 are summarized below (in millions): | ||||||||||||||
Fair value measurement as of September 28, | ||||||||||||||
2013 | ||||||||||||||
Quoted Prices in | Significant | |||||||||||||
Active Markets | Other | |||||||||||||
for Identical | Observable | |||||||||||||
Assets | Inputs | |||||||||||||
Total | (Level 1) | (Level 2) | ||||||||||||
Assets: | ||||||||||||||
Debt available-for-sale securities | ||||||||||||||
U.S. treasuries | $ | 50.5 | $ | 50.5 | $ | — | ||||||||
U.S. agencies | 119.4 | — | 119.4 | |||||||||||
Municipal bonds and sovereign debt instruments | 20.9 | — | 20.9 | |||||||||||
Asset-backed securities | 40.6 | — | 40.6 | |||||||||||
Corporate securities | 456.3 | 456.3 | ||||||||||||
Total debt available-for-sale securities | 687.7 | 50.5 | 637.2 | |||||||||||
Money market funds | 324.4 | 324.4 | — | |||||||||||
Trading securities | 4.5 | 4.5 | — | |||||||||||
Total assets (1) | $ | 1,016.60 | $ | 379.4 | $ | 637.2 | ||||||||
(1) $374.3 million in cash and cash equivalents, $607.8 million in short-term investments, $29.7 million in restricted cash, and $4.8 million in other non-current assets on the Company’s Consolidated Balance Sheet. | ||||||||||||||
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 market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions about the factors that market participants would use in valuing the asset or liability. | ||||||||||||||
The Company’s cash and investment instruments are classified within Level 1 or Level 2 of the fair value hierarchy based on quoted prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. | ||||||||||||||
· Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets. Level 1 assets of the Company include money market funds and U.S. Treasury securities as they are traded in active markets with sufficient volume and frequency of transactions. | ||||||||||||||
· Level 2 includes financial instruments for which the valuations are based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 2 instruments of the Company generally include certain U.S. and foreign government and agency securities, commercial paper, corporate and municipal bonds and notes, asset-backed securities, and foreign currency forward contracts. To estimate their fair value, the Company utilizes pricing models based on market data. The significant inputs for the valuation model usually include benchmark yields, reported trades, broker and dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, and industry and economic events. | ||||||||||||||
· Level 3 includes financial instruments for which fair value is derived from valuation based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||||
As of June 29, 2013 and during the three months ended September 28, 2013, the Company held no Level 3 investments. | ||||||||||||||
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 and other instruments 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 forward contracts, most with a term of less than 120 days, were transacted near month end; therefore, the fair value of the contracts as of both September 28, 2013 and June 29, 2013, is not significant. The change in the fair value of these foreign currency forward contracts is recorded as gain or loss in the Company’s Consolidated Statements of Operations as a component of Interest and other income (expense), net. |
Goodwill
Goodwill | 3 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Goodwill | ' | ||||||||||
Goodwill | ' | ||||||||||
Note 8. Goodwill | |||||||||||
The following table presents the changes in goodwill allocated to the reportable segments (in millions): | |||||||||||
Network and | Optical Security and | ||||||||||
Service Enablement (1) | Performance Products | Total | |||||||||
Balance as of June 29, 2013 | $ | 106.8 | $ | 8.3 | $ | 115.1 | |||||
Currency translation and other adjustments | 3 | — | 3 | ||||||||
Balance as of September 28, 2013 | $ | 109.8 | $ | 8.3 | $ | 118.1 | |||||
(1) In the first quarter of fiscal 2014, the Company changed the name of the CommTest segment to NSE. Refer to “Note 17. Operating Segments” for more details. | |||||||||||
The Company reviews goodwill for impairment during the fourth quarter of each fiscal year or more frequently if events or circumstances indicate that an impairment loss may have occurred. In the fourth quarter of fiscal 2013, the Company completed the annual impairment test of goodwill, which indicated there was no goodwill impairment. There were no events or changes in circumstances which triggered an impairment review during the three months ended September 28, 2013 and September 29, 2012. |
Acquired_Developed_Technology_
Acquired Developed Technology and Other Intangibles | 3 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Acquired Developed Technology and Other Intangibles | ' | ||||||||||
Acquired Developed Technology and Other Intangibles | ' | ||||||||||
Note 9. Acquired Developed Technology and Other Intangibles | |||||||||||
The following tables present details of the Company’s acquired developed technology and other intangibles (in millions): | |||||||||||
Gross | |||||||||||
Carrying | Accumulated | ||||||||||
As of September 28, 2013 | Amount | Amortization | Net | ||||||||
Acquired developed technology | $ | 550.1 | $ | (450.3 | ) | $ | 99.8 | ||||
Other | 220.3 | (182.1 | ) | 38.2 | |||||||
Total intangibles | $ | 770.4 | $ | (632.4 | ) | $ | 138 | ||||
Gross | |||||||||||
Carrying | Accumulated | ||||||||||
As of June 29, 2013 | Amount | Amortization | Net | ||||||||
Acquired developed technology | $ | 546.8 | $ | (437.4 | ) | $ | 109.4 | ||||
Other | 218.8 | (178.5 | ) | 40.3 | |||||||
Total intangibles | $ | 765.6 | $ | (615.9 | ) | $ | 149.7 | ||||
During the three months ended September 28, 2013 and September 29, 2012, the Company recorded $14.1 million and $20.6 million respectively, of amortization expense relating to acquired developed technology and other intangibles. During the three months ended September 29, 2012, the Company approved a plan to terminate the concentrated photovoltaic (“CPV”) product line within its Communications and Commercial Optical Products (“CCOP”) segment and accordingly recorded $2.6 million of accelerated amortization. Refer to “Note 11. Restructuring and Related Charges” for more details. | |||||||||||
Based on the carrying amount of acquired developed technology and other intangibles in continuing operations as of September 28, 2013, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions): | |||||||||||
Fiscal Years | |||||||||||
Remainder of 2014 | $ | 36.5 | |||||||||
2015 | 43.7 | ||||||||||
2016 | 22.9 | ||||||||||
2017 | 19.6 | ||||||||||
2018 | 11.1 | ||||||||||
Thereafter | 4.2 | ||||||||||
Total amortization | $ | 138 | |||||||||
The acquired developed technology and other intangibles balance are adjusted quarterly to record the effect of currency translation adjustments. |
Debts_and_Letters_of_Credit
Debts and Letters of Credit | 3 Months Ended | ||||
Sep. 28, 2013 | |||||
Debts and Letters of Credit | ' | ||||
Debts and Letters of Credit | ' | ||||
Note 10. Debts and Letters of Credit | |||||
The following table presents details of the Company’s debt as of September 28, 2013 (in millions): | |||||
September 28, | |||||
2013 | |||||
0.625% senior convertible notes | $ | 518.2 | |||
1% senior convertible notes | — | ||||
Total convertible debt | 518.2 | ||||
Less: current portion | — | ||||
Total long-term debt | $ | 518.2 | |||
The Company had no debt as of June 29, 2013. The Company was in compliance with all debt covenants as of September 28, 2013. | |||||
0.625% Senior Convertible Notes | |||||
On August 21, 2013, the Company issued $650.0 million aggregate principal amount of 0.625% Senior Convertible Notes due 2033 (the “2033 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The proceeds from the 2033 Notes amounted to $636.3 million after issuance costs. The 2033 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 0.625% payable in cash semi-annually in arrears on February 15 and August 15 of each year. The 2033 Notes mature on August 15, 2033 unless earlier converted, redeemed or repurchased. | |||||
Under certain circumstances and during certain periods, the 2033 Notes may be converted 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 is $18.83 per share, representing a 40.0% premium to the closing sale price of the Company’s common stock on the pricing date, August 15, 2013, which will be subject to customary anti-dilution adjustments. Holders may convert the 2033 Notes at any time on or prior to the close of business on the business day immediately preceding February 15, 2033, and other than during the period from, and including, February 15, 2018 until the close of business on the business day immediately preceding August 20, 2018, in multiples of $1,000 principal amount, under the following circumstances: | |||||
· on any date during any calendar quarter beginning after December 31, 2013 (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 during the 30 consecutive trading-day period ending the last trading day of the previous calendar quarter; | |||||
· if the 2033 Notes are called for redemption; | |||||
· upon the occurrence of specified corporate events; | |||||
· 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 2033 Notes), or | |||||
· during the five consecutive business-day period immediately following any 10 consecutive trading-day period in which the trading price per $1,000 principal amount of the 2033 Notes for each day of such 10 consecutive trading-day period was less than 98% of the product of the closing sale price of the Company’s common stock and the applicable conversion rate on such date. | |||||
During the periods from, and including, February 15, 2018 until the close of business on the business day immediately preceding August 20, 2018 and from, and including, February 15, 2033 until the close of business on the business day immediately preceding the maturity date, holders may convert the 2033 Notes at any time, regardless of the foregoing circumstances. | |||||
Holders of the 2033 Notes may require the Company to purchase all or a portion of the 2033 Notes on each of August 15, 2018, August 15, 2023 and August 15, 2028, or upon the occurrence of a fundamental change, in each case, at a price equal to 100% of the principal amount of the 2033 Notes to be purchased, plus accrued and unpaid interest to, but excluding the purchase date. The Company may redeem all or a portion of the 2033 Notes for cash at any time on or after August 20, 2018, at a redemption price equal to 100% of the principal amount of the 2033 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. | |||||
In accordance with the authoritative accounting guidance, the Company separated the 2033 Notes into liability and equity components. The carrying value of the liability component at issuance was calculated as the present value of its cash flows using a discount rate of 5.4% based on the 5-year swap rate plus credit spread as of the issuance date. The credit spread for the Company is based on the historical average “yield to worst” rate for BB rated issuers. The difference between the 2033 Notes principal and the carrying value of the liability component, representing the value of conversion premium assigned to the equity component, was recorded as a debt discount on the issuance date and is being accreted using the effective interest rate of 5.4% over the period from the issuance date through August 15, 2018 as a non-cash charge to interest expense. The carrying value of the liability component was determined to be $515.6 million, and the equity component, or debt discount, of the 2033 Notes was determined to be $134.4 million. As of September 28, 2013, the expected remaining term of the 2033 Notes is 4.9 years. | |||||
In connection with the issuance of the 2033 Notes, the Company incurred $13.7 million of issuance costs, which were bifurcated into the debt issuance costs (attributable to the liability component) of $10.9 million and the equity issuance costs (attributable to the equity component) of $2.8 million based on their relative values. The debt issuance costs were capitalized and are being amortized to interest expense using the effective interest rate method from issuance date through August 15, 2018. The equity issuance costs were netted against the equity component in additional paid-in capital at the issuance date. As of September 28, 2013, the unamortized portion of the debt issuance costs related to the 2033 Notes was $10.7 million, which was included in Other non-current assets on the Consolidated Balance Sheets. | |||||
The following table presents the carrying amounts of the liability and equity components (in millions): | |||||
September 28, | |||||
2013 | |||||
Carrying amount of equity component | $ | 134.4 | |||
Principal amount of 0.625% Senior Convertible Notes | $ | 650 | |||
Unamortized discount of liability component | (131.8 | ) | |||
Carrying amount of liability component | $ | 518.2 | |||
Based on quoted market prices as of September 28, 2013, the fair market value of the 2033 Notes was approximately $695.1 million. The 2033 Notes are classified within level 2 as they are not actively traded in markets. | |||||
The following table presents the effective interest rate and the interest expense for the contractual interest and the accretion of debt discount (in millions, except for the effective interest rate): | |||||
Three Months Ended | |||||
September 28, | |||||
2013 | |||||
Effective interest rate | 5.4 | % | |||
Interest expense-contractual interest | $ | 0.4 | |||
Accretion of debt discount | 2.6 | ||||
The increase of the debt related to the interest accretion is treated as a non-cash transaction. | |||||
1% Senior Convertible Notes | |||||
On June 5, 2006, the Company completed an offering of $425.0 million aggregate principal amount of 1% Senior Convertible Notes due 2026. Proceeds from the notes amounted to $415.9 million after issuance costs. The notes bore interest at a rate of 1.0% per year and were convertible into a combination of cash and shares of the Company’s common stock at a conversion price of $30.30 per share. | |||||
In accordance with the authoritative guidance which applied to the 1% Senior Convertible Notes, the Company calculated the carrying value of the liability component at issuance as the present value of its cash flows using a discount rate of 8.1%, based on the 7-year swap rate plus credit spread as of the issuance date. The carrying value of the liability component was determined to be $266.5 million. The equity component, or debt discount, of the notes was determined to be $158.5 million. The debt discount was accreted using the effective interest rate of 8.1% over the period from issuance date through May 15, 2013 as a non-cash charge to interest expense. | |||||
In the first quarter of fiscal 2013, the Company recognized the contractual interest expense of $0.7 million and accreted debt discount of $4.2 million. Between fiscal 2009 and fiscal 2013, the Company repurchased or redeemed the $425.0 million aggregate principal amount of the notes. As of June 29, 2013, no amounts were outstanding. | |||||
Revolving Credit Facility | |||||
On August 21, 2013, in addition to the close of the 2033 Notes offering, the Company terminated its existing $250.0 million revolving credit facility, which had no amounts outstanding upon termination. The $1.3 million of unamortized debt issuance costs was fully amortized to interest expense upon termination in the first quarter of fiscal 2014. | |||||
Outstanding Letters of Credit | |||||
As of September 28, 2013, the Company had 15 standby letters of credit totaling $33.6 million. |
Restructuring_and_Related_Char
Restructuring and Related Charges | 3 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Restructuring and Related Charges | ' | ||||||||||||||||
Restructuring and Related Charges | ' | ||||||||||||||||
Note 11. Restructuring and Related Charges | |||||||||||||||||
The Company continues to reduce costs through targeted restructuring events intended to consolidate its operations and rationalize the manufacturing of its products based on core competencies and cost efficiencies, together with the need to align its businesses response to market conditions. As of September 28, 2013, the Company’s total restructuring accrual was $13.1 million. During the three months ended September 28, 2013 and September 29, 2012, the Company recorded a benefit from restructuring activities of $0.8 million and restructuring related expenses of $2.7 million, respectively. The Company’s restructuring charges can include severance and benefit costs to eliminate a specified number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods. | |||||||||||||||||
Summary of Restructuring Plans | |||||||||||||||||
The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three months ended September 28, 2013 were as follows: | |||||||||||||||||
Three Months | |||||||||||||||||
Ended | Non-cash | ||||||||||||||||
Balance | September 28, | Settlements | Balance | ||||||||||||||
June 29, | 2013 | Cash | and Other | September 28, | |||||||||||||
2013 | Charges | Settlements | Adjustments | 2013 | |||||||||||||
Fiscal 2013 Plans | |||||||||||||||||
OSP Operational Realignment Plan (Workforce Reduction) | $ | 3.7 | $ | (0.9 | ) | $ | — | $ | — | $ | 2.8 | ||||||
NSE Lease Restructuring Plan: | |||||||||||||||||
Lease Costs | 5 | — | (0.4 | ) | — | 4.6 | |||||||||||
Equipment and Facility Costs | — | 0.1 | (0.1 | ) | — | — | |||||||||||
Total NSE Lease Restructuring Plan | $ | 5 | $ | 0.1 | $ | (0.5 | ) | $ | — | $ | 4.6 | ||||||
CCOP Outsourcing Plan (Workforce Reduction) | 0.7 | — | (0.1 | ) | — | 0.6 | |||||||||||
NSE Wireless Business Restructuring Plan (Workforce Reduction) | 1 | (0.1 | ) | (0.3 | ) | — | 0.6 | ||||||||||
Other plans | 0.5 | — | (0.5 | ) | — | — | |||||||||||
Fiscal 2012 Plans | |||||||||||||||||
NSE Operation and Repair Outsourcing Restructuring Plan: | |||||||||||||||||
Workforce Reduction | $ | 2 | $ | 0.1 | $ | (0.7 | ) | $ | — | $ | 1.4 | ||||||
Lease Costs | 0.1 | — | — | — | 0.1 | ||||||||||||
Total NSE Operation and Repair Outsourcing Restructuring Plan | $ | 2.1 | $ | 0.1 | $ | (0.7 | ) | $ | — | $ | 1.5 | ||||||
Other plans | 0.6 | — | (0.1 | ) | — | 0.5 | |||||||||||
Plans Prior to Fiscal 2012 | 2.9 | — | (0.5 | ) | 0.1 | 2.5 | |||||||||||
Total | $ | 16.5 | $ | (0.8 | ) | $ | (2.7 | ) | $ | 0.1 | $ | 13.1 | |||||
Ottawa Lease Exit Costs | $ | 3.7 | $ | — | $ | (0.3 | ) | $ | 0.1 | $ | 3.5 | ||||||
As of September 28, 2013 and June 29, 2013, the Company included the long-term portion of the restructuring liability of $5.3 million and $6.2 million, respectively, as the restructuring accrual component under Other non-current liabilities, and the short-term portion as the restructuring accrual component under Other current liabilities in the Consolidated Balance Sheets. | |||||||||||||||||
The Company had also previously recorded lease exit charges, net of assumed sub-lease income in prior fiscal years related to its Ottawa facility, that were included in Selling, general and administrative expenses. The fair value of the remaining contractual obligations, net of sublease income, is $3.5 million and $3.7 million as of September 28, 2013 and June 29, 2013, respectively. The Company included the long-term portion of the contract obligations of $2.4 million and $2.7 million in Other non-current liabilities as of each period end, and the short-term portion in Other current liabilities in the Consolidated Balance Sheets. The payments related to these lease costs are expected to be paid by the end of the third quarter of fiscal 2018. | |||||||||||||||||
Fiscal 2013 Plans | |||||||||||||||||
OSP Operational Realignment Plan | |||||||||||||||||
During the fourth quarter of fiscal 2013, Management approved a plan in the OSP segment to realign its operations to focus on priority markets such as Anti-counterfeiting, Consumer and Industrial and Other offerings in government, aerospace and defense. As a result, the OSP segment is ceasing production of certain legacy products such as anti-reflection coatings and front-surface mirrors for display and office automation applications, solar cell covers, and select infrared products that use the Multi-layer Anti-reflection Coater, custom display, and certain box coater production platforms which were at the end of their product lifecycle. The business segment intends to phase out production of these product offerings by the end of the third quarter of fiscal 2014 and de-commission and dispose of certain related production equipment. This will result in consolidation of manufacturing operations and office space at the Santa Rosa, California site and reduction of workforce by approximately 86 employees primarily in manufacturing, R&D and SG&A functions located in the United States. During the first quarter of fiscal 2014, Management reduced the number of employees impacted by this plan from 126 to 86, which reduced the total liability for this plan by approximately $0.9 million. As of September 28, 2013, no employees have been terminated. Payments related to remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2014. | |||||||||||||||||
NSE Lease Restructuring Plan | |||||||||||||||||
During the fourth quarter of fiscal 2013, Management approved a plan to consolidate workspace in Germantown, Maryland and Beijing, China, primarily used by the NSE segment. As of June 29, 2013, the Company exited the workspace in Germantown and Beijing under the plan. The fair value of the remaining contractual obligations, net of sublease income as of September 28, 2013 was $4.6 million. The final payment of $0.1 million related to the Beijing lease costs was paid during the first quarter of fiscal 2014. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2021. | |||||||||||||||||
CCOP Outsourcing Plan | |||||||||||||||||
During the third quarter of fiscal 2013, Management approved a plan to transition certain functions related to the CCOP segment to an offshore contract manufacturer to align with its continuous efforts for supply chain optimization. As a result, 43 employees primarily in manufacturing, R&D and SG&A functions located in the United States were impacted. As of September 28, 2013, 13 employees have been terminated. Payments related to remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2015. | |||||||||||||||||
NSE Wireless Business Restructuring Plan | |||||||||||||||||
During the second quarter of fiscal 2013, Management approved a plan to align the Company’s investment strategy in the NSE segment with customer spending priorities in high-growth product lines such as wireless network assurance. As a result, the segment eliminated positions in R&D, sales and operations functions that supported low-growth product lines and 63 employees primarily in manufacturing, R&D and SG&A functions located in North America, Europe and Asia were impacted. As of September 28, 2013, 55 employees have been terminated. Payments related to remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2014. | |||||||||||||||||
Other Plans | |||||||||||||||||
Other plans account for an immaterial portion of the total restructuring accrual, with minimal or no revisions recorded. | |||||||||||||||||
Fiscal 2012 Plans | |||||||||||||||||
NSE Operation and Repair Outsourcing Restructuring Plan | |||||||||||||||||
During the fourth quarter of fiscal 2012, Management approved a plan which focuses on three areas in the NSE segment: (1) moving the repair organization to a repair outsourcing partner; (2) reorganizing the R&D global team because of portfolio prioritization primarily in the Customer Experience Management (“CEM”) business to consolidate key platforms from several sites to a single site, and (3) reorganizing Global Sales to focus on strategic software growth, wireless growth, and to ensure sales account resources on the most critical global growth accounts. This action will occur over the next several quarters and will impact 169 employees in manufacturing, R&D and SG&A functions and resulted in the exit of workspaces in Techpoint Singapore and Atlanta, Georgia. As of September 29, 2012, the Company exited both workspaces. The fair value of the remaining contractual obligations, net of sublease income as of September 28, 2013, was $0.1 million. The employees being affected are located in North America, Europe, Latin America and Asia. As of September 28, 2013, 152 of these employees have been terminated. Payments related to the severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2014. | |||||||||||||||||
Other Plans | |||||||||||||||||
Other plans account for an immaterial portion of the total restructuring accrual, with minimal or no revisions recorded. | |||||||||||||||||
Plans Prior to Fiscal 2012 | |||||||||||||||||
The restructuring accrual for plans that commenced prior to fiscal year 2012 was $2.5 million. Of this amount, $1.5 million is related to severance and benefits accrual for the NSE Germany Restructuring Plan which commenced in the fourth quarter of fiscal 2009. Payments related to the severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2016. The remaining balance consists of immaterial lease obligation accruals from various restructuring plans that commenced prior to fiscal 2012. | |||||||||||||||||
Income_Tax
Income Tax | 3 Months Ended |
Sep. 28, 2013 | |
Income Tax | ' |
Income Tax | ' |
Note 12. Income Tax | |
The Company recorded an income tax expense of $0.5 million and $3.4 million for the three months ended September 28, 2013 and September 29, 2012, respectively. | |
The income tax expense recorded for the three months ended September 28, 2013 and September 29, 2012, primarily relate to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the respective year. A tax benefit of $4.2 million was recorded in the Company’s income tax provision for the three months ended September 28, 2013 related to the income tax intraperiod tax allocation rules in relation to other comprehensive income. In accordance with authoritative guidance, the current quarter benefit may reverse during the year. | |
The income tax expense or benefit recorded differs from the expected tax expense or benefit that would be calculated by applying the federal statutory rate to the Company’s loss or profit before income taxes primarily due to the increases in valuation allowance for deferred tax assets attributable to the Company’s domestic and foreign losses from continuing operations and due to the income tax benefit recorded in continuing operations under the income tax intraperiod tax allocation rules. | |
As of September 28, 2013 and June 29, 2013 the Company’s unrecognized tax benefits totaled $81.9 million and $80.7 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $24.9 million accrued for the payment of interest and penalties at September 28, 2013. The unrecognized tax benefits that may be recognized during the next twelve months is approximately $22.1 million. | |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Sep. 28, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
Note 13. Stockholders’ Equity | |
Repurchase of Common Stock | |
During the first quarter of fiscal 2014, the Company repurchased 7.4 million shares of its outstanding common stock at $13.45 per share in privately negotiated transactions. The total purchase price of $100.0 million 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 under this program have been cancelled and retired. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ' | |||||||
Note 14. Stock-Based Compensation | ||||||||
Overview | ||||||||
The impact on the Company’s results of operations of recording stock-based compensation by function for the three months ended September 28, 2013 and September 29, 2012 was as follows (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Cost of sales | $ | 2.4 | $ | 2.2 | ||||
Research and development | 3.7 | 2.9 | ||||||
Selling, general and administrative | 9.6 | 7.5 | ||||||
$ | 15.7 | $ | 12.6 | |||||
Approximately $1.9 million of stock-based compensation was capitalized in inventory at September 28, 2013. | ||||||||
Stock Options | ||||||||
The Company issues stock options that generally become exercisable over a three-year or four-year period and, if not exercised, expire from five to ten years after the date of grant. The Company granted no stock options in the first quarter of fiscal 2014 or fiscal 2013. | ||||||||
As of September 28, 2013, $0.9 million of unrecognized stock-based compensation cost related to stock options remains to be amortized. That cost is expected to be recognized over an estimated amortization period of 1.1 years. | ||||||||
Employee Stock Purchase Plan | ||||||||
The Company’s ESPP provides eligible employees an opportunity to acquire an ownership interest in the Company at a discounted purchase price with a 6-month look-back period. The fair value of ESPP is estimated on the date of offering using a Black-Scholes-Merton valuation model. | ||||||||
As of September 28, 2013, $0.8 million of unrecognized stock-based compensation cost related to the ESPP remains to be amortized. That cost is expected to be recognized through the third quarter of fiscal 2014. | ||||||||
Full Value Awards | ||||||||
“Full Value Awards” refer to RSUs and Performance Units that are granted with the exercise price equal to zero and are converted to shares immediately upon vesting. These Full Value Awards are performance-based, time-based or a combination of both and expected to vest over one year to four years. The fair value of the time-based Full Value Awards is based on the closing market price of the Company’s common stock on the date of award. | ||||||||
In the first quarter of fiscal 2014 and fiscal 2013, the Company granted 4.4 million and 5.4 million RSUs, of which 0.6 million and 0.7 million, respectively, are performance-based RSUs with market conditions (“MSUs”). These MSUs shares represent the target amount of grants, and the actual number of shares awarded upon vesting of the MSUs may be higher or lower depending upon the achievement of the relevant market conditions. The majority of MSUs vest in equal annual installments over three years based on the attainment of certain total shareholder return performance measures and the employee’s continued service through the vest date. The aggregate grant-date fair value of MSUs granted during the first quarter of fiscal 2014 and fiscal 2013 was estimated to be $9.2 million and $9.8 million, respectively, and was calculated using a Monte Carlo simulation. The remaining 3.8 million and 4.7 million shares for the first quarter of fiscal 2014 and fiscal 2013 are mainly time-based RSUs. The majority of these time-based RSUs vest over three years, with 33% vesting after one year and quarterly over the remaining two years. | ||||||||
As of September 28, 2013, $107.6 million of unrecognized stock-based compensation cost related to Full Value Awards remains to be amortized. That cost is expected to be recognized over an estimated amortization period of 2.3 years. | ||||||||
Full Value Awards are converted into shares upon vesting. Shares equivalent in value to the minimum withholding taxes liability on the vested shares are withheld by the Company for the payment of such taxes. During the first fiscal quarter of 2014 and 2013, the Company paid $11.2 million and $7.4 million, respectively, and classified the payments as operating cash outflows in the Consolidated Statements of Cash Flows. | ||||||||
Valuation Assumptions | ||||||||
The Company estimates the fair value of the MSUs on the date of grant using a Monte Carlo simulation with the following assumptions: | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Volatility of common stock | 53.9 | % | 57.7 | % | ||||
Average volatility of peer companies | 58.6 | % | 58.3 | % | ||||
Average correlation coefficient of peer companies | 0.292 | 0.3214 | ||||||
Risk-free interest rate | 0.8 | % | 0.4 | % |
Employee_Defined_Benefit_Plans
Employee Defined Benefit Plans | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Employee Defined Benefit Plans | ' | |||||||
Employee Defined Benefit Plans | ' | |||||||
Note 15. Employee Defined Benefit Plans | ||||||||
The Company sponsors qualified and non-qualified pension plans for certain past and present employees in the U.K. and Germany. The Company is also responsible for the non-pension post-retirement benefit obligation of a previously acquired subsidiary. Most of the plans have been closed to new participants and no additional service costs are being accrued, except for the plans assumed during fiscal 2010 in connection with an acquisition. Benefits are generally based upon years of service and compensation or stated amounts for each year of service. | ||||||||
As of September 28, 2013, the U.K. plan was partially funded while the other plans were unfunded. The Company’s policy for funded plans is to make contributions equal to or greater than the requirements prescribed by law or regulation. For unfunded plans, the Company pays the post-retirement benefits when due. During the first quarter of fiscal 2014, the Company contributed $0.7 million to the U.K. plan. The funded plan assets consist primarily of managed investments. | ||||||||
The following table presents the components of the net periodic cost for the pension plans (in millions): | ||||||||
Pension Benefits | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Service cost | $ | 0.1 | $ | 0.1 | ||||
Interest cost | 1.2 | 1.1 | ||||||
Expected return on plan assets | (0.4 | ) | (0.3 | ) | ||||
Net periodic benefit cost | $ | 0.9 | $ | 0.9 | ||||
Both the calculation of the projected benefit obligation and net periodic cost are based upon actuarial valuations. These valuations use participant-specific information such as salary, age, years of service, and assumptions about interest rates, pension increases and other factors. At a minimum, the Company evaluates these assumptions annually and makes changes as necessary. | ||||||||
The Company expects to incur cash outlays of approximately $5.2 million related to its defined benefit pension plans during fiscal 2014 to make current benefit payments and fund future obligations. As of September 28, 2013, approximately $1.6 million had been incurred. These payments have been estimated based on the same assumptions used to measure the Company’s projected benefit obligation at June 29, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ' | |||||||
Note 16. Commitments and Contingencies | ||||||||
Legal Proceedings | ||||||||
The Company is subject to a variety of claims and suits that arise from time to time in the ordinary course of our business. While Management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact on its financial position, results of operations or statement of cash flows, these matters are subject to inherent uncertainties and Management’s view of these matters may change in the future. Were an unfavorable final outcome to occur, there exists the possibility of a material adverse impact on the Company’s financial position, results of operations or cash flows for the period in which the effect becomes reasonably estimable. | ||||||||
Guarantees | ||||||||
In accordance with authoritative guidance which requires that upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligation it assumes under that guarantee. In addition, disclosures about the guarantees that an entity has issued, including a tabular reconciliation of the changes of the entity’s product warranty liabilities, are required. | ||||||||
The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to: (i) divestiture agreements, under which the Company may provide customary indemnifications to purchasers of the Company’s businesses or assets; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises; and (iii) certain agreements with the Company’s officers, directors and employees, under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship. | ||||||||
The terms of such obligations vary. Generally, a maximum obligation is not explicitly stated. Because the obligated amounts of these types of agreements often are not explicitly stated, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, the Company has not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations on its balance sheet as of September 28, 2013 and June 29, 2013. | ||||||||
Product Warranties | ||||||||
In general, the Company offers a three-month to one-year warranty for most of its products. The Company provides reserves for the estimated costs of product warranties at the time revenue is recognized. 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 with specific products. 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 (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Balance as of beginning of period | $ | 6.9 | $ | 8.1 | ||||
Provision for warranty | 2.3 | 1.9 | ||||||
Utilization of reserve | (1.4 | ) | (1.3 | ) | ||||
Adjustments related to pre-existing warranties (including changes in estimates) | (1.0 | ) | (1.1 | ) | ||||
Balance as of end of period | $ | 6.8 | $ | 7.6 | ||||
Financing Obligations — Eningen and Santa Rosa | ||||||||
Eningen | ||||||||
On December 16, 2011, the Company executed and closed the sale and leaseback transaction of certain buildings and land in Eningen, Germany (the “Eningen Transactions”). The Company sold approximately 394,217 square feet of land, nine buildings with approximately 386,132 rentable square feet, and parking areas. The Company leased back approximately 158,154 rentable square feet comprised of two buildings and a portion of a basement of another building (the “Leased Premises”). The lease term is 10 years with the right to cancel a certain portion of the lease after 5 years. The gross cash proceeds received from the transaction were approximately €7.1 million. | ||||||||
Concurrent with the sale and lease back, the Company has provided collateral in case of a default by the Company relative to future lease payments for the Leased Premises. Due to this continuing involvement, the related portion of the cash proceeds and transaction costs, associated with the Leased Premises and other buildings which the Company continues to occupy, was recorded under the financing method in accordance with the authoritative guidance on leases and sales of real estate. Accordingly, the carrying value of these buildings and associated land will remain on the Company’s books and the buildings will continue to be depreciated over their remaining useful lives. The portion of the proceeds received have been recorded as a financing obligation, a portion of the lease payments are recorded as a decrease to the financing obligation and a portion is recognized as interest expense. Imputed rental income from the buildings sold but not leased back and currently being occupied is recorded as a reduction in the financing obligation. | ||||||||
As of September 28, 2013, of the total financing obligation related to the Eningen Transactions, $0.1 million was included in Other current liabilities, and $5.2 million was included in Other non-current liabilities. As of June 29, 2013, of the total financing obligation related to the Eningen Transactions, $0.1 million was included in Other current liabilities, and $5.0 million was included in Other non-current liabilities. | ||||||||
Santa Rosa | ||||||||
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”). The Company sold approximately 45 acres of land, 13 buildings with approximately 492,000 rentable square feet, a building pad, and parking areas. The Company leased back 7 buildings with approximately 286,000 rentable square feet. The net cash proceeds received from the transaction were $32.2 million. The lease terms range from a five-year lease with a one-year renewal option to a ten-year lease with two five-year renewal options. | ||||||||
The Company has an ongoing obligation to remediate environmental matters, impacting the entire site, as required by the North Coast Regional Water Quality Control Board which existed at the time of sale. Concurrent with the sale and lease back, the Company has issued an irrevocable letter of credit for $3.8 million as security for the remediation of the environmental matter that remains in effect until the issuance of a notice of no further action letter from the North Coast Regional Water Quality Control Board. In addition, the lease agreement for one building included an option to purchase at fair market value, at the end of the lease term. Due to these various forms of continuing involvement the transaction was recorded under the financing method in accordance with the authoritative guidance on leases and sales of real estate. | ||||||||
Accordingly, the value of the buildings and land will remain on the Company’s books and the buildings will continue to be depreciated over their remaining useful lives. The proceeds received have been recorded as a financing obligation, a portion of the lease payments are recorded as a decrease to the financing obligation and a portion is recognized as interest expense. Imputed rental income from the buildings sold but not leased back is recorded as a reduction in the financing obligation. | ||||||||
As of September 28, 2013, $1.1 million was included in Other current liabilities, and $27.1 million was included in Other non-current liabilities. As of June 29, 2013, $1.1 million was included in Other current liabilities, and $27.4 million was included in Other non-current liabilities. | ||||||||
The lease payments due under the agreements reset to fair market rental rates upon the Company’s execution of the renewal options. | ||||||||
Future Minimum Financing Payments — Eningen and Santa Rosa Financing Obligations | ||||||||
As of September 28, 2013, future minimum financing payments of the financing obligations are as follows (in millions): | ||||||||
Fiscal Years | ||||||||
Remainder of 2014 | $ | 2.8 | ||||||
2015 | 3.7 | |||||||
2016 | 3.5 | |||||||
2017 | 3.5 | |||||||
2018 | 3.6 | |||||||
Thereafter | 33.8 | |||||||
Total | $ | 50.9 | ||||||
Operating_Segments
Operating Segments | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Operating Segments | ' | |||||||
Operating Segments | ' | |||||||
Note 17. Operating Segments | ||||||||
The Company evaluates its reportable segments in accordance with the authoritative guidance on segment reporting. The Company’s Chief Executive Officer, Thomas H. Waechter, is the Company’s Chief Operating Decision Maker (“CODM”) pursuant to the guidance. The CODM allocates resources to the segments based on their business prospects, competitive factors, net revenue and operating results. | ||||||||
The Company is a leading provider of network service and enablement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers (“NEMs”), and enterprises. JDSU’s diverse technology portfolio also fights counterfeiting and enables commercial lasers for a range of manufacturing applications. | ||||||||
In the first quarter of fiscal 2014, the Company changed the name of the Communication Test and Measurement segment to Network and Service Enablement. The name NSE more accurately reflects the value the Company brings to customers and the evolution of the Company’s product portfolio, one that includes communications test instruments as well as microprobes, software and services that provide the visibility necessary throughout the network to improve service and application performance. | ||||||||
The Company’s reportable segments are: | ||||||||
(i) Network and Service Enablement: | ||||||||
NSE provides end-to-end visibility and intelligence necessary for consistent, high-quality network, service, and application performance. These solutions speed time-to-revenue by accelerating the deployment of new products and services, lower operating expenses and improve network performance and reliability. Included in the product portfolio are test tools, platforms, microprobes, software, and services for wireless and fixed networks. | ||||||||
(ii) Communications and Commercial Optical Products: | ||||||||
CCOP provides components, modules, subsystems, and solutions used by communications equipment providers for telecommunications and enterprise data communications. These products enable the transmission of video, audio, and text data over high-capacity, fiber-optic cables. The product portfolio includes transmitters, receivers, amplifiers, ROADMs, optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters and circulators. | ||||||||
CCOP also provides a broad laser portfolio that addresses the needs of original equipment manufacturers (“OEM”) clients for applications such as micromachining, materials processing, bioinstrumentation, consumer electronics, graphics, medical/dental, and optical pumping. JDSU products include diode, direct-diode, diode-pumped solid-state, fiber and gas lasers. | ||||||||
(iii) Optical Security and Performance Products: | ||||||||
OSP provides innovative optical security solutions, with a strategic focus on serving the anti-counterfeiting market through advanced security pigments, thread substrates and printed features for the currency, pharmaceutical and consumer electronic segments. OSP also provides thin-film coating solutions for gesture-recognition and other applications. | ||||||||
The accounting policies of the reportable segments are the same as those described in the Company’s Annual Report on Form 10-K for the year ended June 29, 2013. The Company evaluates segment performance based on operating income (loss), excluding certain infrequent or unusual items. | ||||||||
The amounts shown as Corporate consist of certain unallocated corporate-level operating expenses. In addition, the Company does not allocate stock-based compensation, acquisition-related charges and amortization of intangibles, restructuring and related charges, non-operating income and expenses, or other non-recurring charges to its segments as highlighted in the table below. | ||||||||
Information on reportable segments is as follows (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Net revenue: | ||||||||
Network and Service Enablement | $ | 171.9 | $ | 169.5 | ||||
Communications and Commercial Optical Products | 204.6 | 194.9 | ||||||
Optical Security and Performance Products | 52.5 | 56.5 | ||||||
Net revenue | $ | 429 | $ | 420.9 | ||||
Operating income (loss): | ||||||||
Network and Service Enablement | $ | 12.6 | $ | 16.8 | ||||
Communications and Commercial Optical Products | 27.2 | 23.8 | ||||||
Optical Security and Performance Products | 19.1 | 21.2 | ||||||
Corporate | (23.5 | ) | (23.1 | ) | ||||
Total segment operating income | 35.4 | 38.7 | ||||||
Unallocated amounts: | ||||||||
Stock-based compensation | (15.7 | ) | (12.6 | ) | ||||
Acquisition-related charges and amortization of intangibles | (14.1 | ) | (21.4 | ) | ||||
Loss on disposal of long-lived assets | (0.3 | ) | (1.3 | ) | ||||
Restructuring activities | 0.8 | (2.7 | ) | |||||
Other charges related to non-recurring activities | 0.5 | (0.6 | ) | |||||
Interest and other income | (0.6 | ) | (0.4 | ) | ||||
Interest expense | (5.2 | ) | (6.1 | ) | ||||
Income (loss) from continuing operations before income taxes | $ | 0.8 | $ | (6.4 | ) |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||
Sep. 28, 2013 | |||||
Discontinued Operations | ' | ||||
Discontinued Operations | ' | ||||
Note 18. Discontinued Operations | |||||
During the second quarter of fiscal 2013, the Company closed the sale of the Hologram Business, previously within the OSP reportable segment, to OpSec Security Inc. and received gross proceeds of $11.5 million in cash. | |||||
In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of the Hologram Business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. | |||||
Net revenue of the Hologram Business for the three months ended September 29, 2012 was $4.9 million. Net loss for the three months ended months ended September 29, 2012 was $1.8 million. There was no tax effect associated with the discontinued operation for any periods presented. | |||||
During fiscal 2013 the Company recorded a gain of $0.6 million as a component of Loss from discontinued operations, net of tax on the Consolidated Statement of Operations in connection with the sale of the Hologram Business, calculated as follows (in millions): | |||||
Gross Proceeds | $ | 11.5 | |||
Less: carrying value of net assets | (10.6 | ) | |||
Less: selling costs | (0.3 | ) | |||
Gain | $ | 0.6 | |||
The carrying value of the net assets sold as of October 12, 2012 are as follows (in millions): | |||||
October 12, | |||||
2012 | |||||
Accounts receivable, net | $ | 2.7 | |||
Inventories, net | 4.4 | ||||
Property, plant and equipment, net | 0.8 | ||||
Intangibles, net | 5.8 | ||||
Accounts payable and accrued expenses | (1.5 | ) | |||
Other current and non-current liabilities | (1.6 | ) | |||
Total net assets held for sale | $ | 10.6 |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 28, 2013 | |
Basis of Presentation | ' |
Fiscal Years | ' |
Fiscal Years | |
The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30th. The Company’s fiscal 2014 is a 52-week year ending on June 28, 2014. The Company’s fiscal 2013 was a 52-week year ending on June 29, 2013. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. | |
Fiscal 2013 Out-of-Period Adjustments | ' |
Fiscal 2013 Out-of-Period Adjustments | |
During the three months ended September 29, 2012, the Company recorded out-of-period adjustments primarily related to the cost of sales in fiscal year 2011. The impact of the corrections reduced the net loss by $1.9 million for the three months ended September 29, 2012. Management and the Audit Committee concluded these errors, both individually and in aggregate, were not material to any prior year financial statements and the impact of correcting these errors in fiscal 2013 was not material to the full year fiscal 2013 financial statements. | |
Discontinued Operations | ' |
Discontinued Operations | |
During the second quarter of fiscal 2013, the Company closed the sale of its hologram business (“Hologram Business”) for $11.5 million in cash. The Consolidated Statements of Operations reflect the Hologram Business as discontinued operations as described in “Note 18. Discontinued Operations.” Unless noted otherwise, discussion in the Notes to Consolidated Financial Statements pertain to continuing operations. | |
Use of Estimates | ' |
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 affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenue and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and on various assumptions about the future believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information. | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Earnings Per Share | ' | |||||||
Schedule of computation of basic and diluted net loss per share | ' | |||||||
The following table sets forth the computation of basic and diluted net loss per share (in millions, except per share data): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Income (loss) from continuing operations, net of tax | $ | 0.3 | $ | (9.8 | ) | |||
Income (loss) from discontinued operations, net of tax | — | (1.8 | ) | |||||
Net income (loss) | $ | 0.3 | $ | (11.6 | ) | |||
Denominator: | ||||||||
Weighted-average number of common shares outstanding: | ||||||||
Basic | 235.3 | 232.8 | ||||||
Effect of dilutive securities from stock-based benefit plans | 4.3 | — | ||||||
Diluted | 239.6 | 232.8 | ||||||
Basic net income (loss) per share from: | ||||||||
Continuing operations | $ | 0 | $ | (0.04 | ) | |||
Discontinued operations | — | (0.01 | ) | |||||
Net income (loss) | $ | 0 | $ | (0.05 | ) | |||
Diluted net income (loss) per share from: | ||||||||
Continuing operations | $ | 0 | $ | (0.04 | ) | |||
Discontinued operations | — | (0.01 | ) | |||||
Net income (loss) | $ | 0 | $ | (0.05 | ) | |||
Schedule of weighted average potentially dilutive securities excluded from the computation because their effect would have been anti-dilutive | ' | |||||||
The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) per share because their effect would have been anti-dilutive (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 (1) | 2012 (2) | |||||||
Employee stock options and ESPP | 1.5 | 8.5 | ||||||
RSUs | 0.5 | 8.5 | ||||||
Total potentially dilutive securities | 2 | 17 | ||||||
(1) The Company’s 0.625% Senior Convertible Notes are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in- the-money” conversion benefit feature at the conversion price above $18.83 per share is payable in cash, shares of the Company’s common stock or a combination of both. Refer to “Note 10. Debts and Letters of Credit” for more details. | ||||||||
(2) The Company’s 1% Senior Convertible Notes are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $30.30 per share is payable in shares of the Company’s common stock or cash. Refer to “Note 10. Debts and Letters of Credit” for more details. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||
Schedule of components of accumulated other comprehensive income | ' | |||||||||||||
For the three months ended September 28, 2013, the changes in accumulated other comprehensive income by component net of tax were as follows (in millions): | ||||||||||||||
Unrealized | ||||||||||||||
losses on | Foreign currency | Defined benefit | ||||||||||||
available-for- | translation | obligation, net | ||||||||||||
sale investments | adjustments | of tax (1) | Total | |||||||||||
Beginning balance as of June 29, 2013 | $ | (3.1 | ) | $ | 16.4 | $ | (4.7 | ) | $ | 8.6 | ||||
Other comprehensive income before reclassification adjustments | 0.3 | 10.9 | — | 11.2 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | ||||||||||
Net current-period other comprehensive income | 0.3 | 10.9 | — | 11.2 | ||||||||||
Ending balance as of September 28, 2013 | $ | (2.8 | ) | $ | 27.3 | $ | (4.7 | ) | $ | 19.8 | ||||
(1) Refer to “Note 15. Employee Defined Benefit Plan” for more details on the computation of net periodic cost for pension plans. |
Mergers_and_Acquisitions_Table
Mergers and Acquisitions (Tables) | 3 Months Ended | ||||
Sep. 28, 2013 | |||||
Arieso | ' | ||||
Acquisitions | ' | ||||
Summary of components of the tangible assets acquired at fair value | ' | ||||
The purchase price was allocated as follows (in millions): | |||||
Net tangible assets acquired | $ | 0.2 | |||
Intangible assets acquired: | |||||
Developed technology | 32.8 | ||||
Customer relationships | 14.5 | ||||
Order backlog | 1.4 | ||||
Goodwill | 40.8 | ||||
Total purchase price | $ | 89.7 | |||
Summary of components of the tangible assets acquired at fair value | ' | ||||
The following table summarizes the components of the tangible assets acquired at fair value (in millions): | |||||
Cash | $ | 4.1 | |||
Accounts receivable | 8.4 | ||||
Property and equipment | 0.6 | ||||
Accounts payable | (0.3 | ) | |||
Accrued expenses, net of other assets | (1.4 | ) | |||
Employee related liabilities | (1.4 | ) | |||
Deferred revenue | (1.7 | ) | |||
Deferred tax liabilities, net | (8.1 | ) | |||
Net tangible assets acquired | $ | 0.2 | |||
GenComm | ' | ||||
Acquisitions | ' | ||||
Summary of components of the tangible assets acquired at fair value | ' | ||||
The purchase price was allocated as follows (in millions): | |||||
Net tangible assets acquired | $ | 5.9 | |||
Intangible assets acquired: | |||||
Developed technology | 3.2 | ||||
Customer relationships | 0.2 | ||||
Order backlog | 0.2 | ||||
Goodwill | 5.7 | ||||
Total purchase price | $ | 15.2 |
Balance_Sheet_and_Other_Detail1
Balance Sheet and Other Details (Tables) | 3 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Balance Sheet and Other Details | ' | |||||||||||||
Activities and balances for allowance for doubtful accounts | ' | |||||||||||||
The activities and balances for allowance for doubtful accounts and allowance for sales returns were as follows (in millions): | ||||||||||||||
June 29, | Charged to Costs | September 28, | ||||||||||||
2013 | and Expenses | Deduction (1) | 2013 | |||||||||||
Allowance for doubtful accounts | $ | 2.1 | $ | 0.5 | $ | (0.2 | ) | $ | 2.4 | |||||
Allowance for sales returns | 0.1 | — | (0.1 | ) | — | |||||||||
Total accounts receivable reserves | $ | 2.2 | $ | 0.5 | $ | (0.3 | ) | $ | 2.4 | |||||
(1) Write-off of uncollectible accounts, net of recoveries. | ||||||||||||||
Schedule of components of Inventories | ' | |||||||||||||
Inventories, net are stated at the lower of cost or market, and include material, labor, and manufacturing overhead costs. The components of Inventories, net were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Finished goods | $ | 69 | $ | 85.7 | ||||||||||
Work in process | 37.7 | 37 | ||||||||||||
Raw materials and purchased parts | 31.8 | 23.1 | ||||||||||||
Inventories, net | $ | 138.5 | $ | 145.8 | ||||||||||
Schedule of components of Prepayments and other current assets | ' | |||||||||||||
The components of Prepayments and other current assets were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Prepayments | $ | 36.4 | $ | 36 | ||||||||||
Advances to contract manufacturers | 13.7 | 14.6 | ||||||||||||
Deferred income tax | 4.9 | 3.9 | ||||||||||||
Refundable income taxes | 2.3 | 2.3 | ||||||||||||
Other receivables | 31.5 | 26.1 | ||||||||||||
Assets held for sale | 2.3 | 2.2 | ||||||||||||
Other current assets | 9.7 | 10.2 | ||||||||||||
Prepayments and other current assets | $ | 100.8 | $ | 95.3 | ||||||||||
Schedule of components of Property, plant and equipment | ' | |||||||||||||
The components of Property, plant and equipment, net were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Land | $ | 14.7 | $ | 14.6 | ||||||||||
Buildings and improvements | 35.6 | 34.9 | ||||||||||||
Machinery and equipment | 464.5 | 453.8 | ||||||||||||
Furniture, fixtures, software and office equipment | 139.9 | 132.9 | ||||||||||||
Leasehold improvements | 94.2 | 92.7 | ||||||||||||
Construction-in-progress | 12 | 14.9 | ||||||||||||
760.9 | 743.8 | |||||||||||||
Less: Accumulated depreciation | (516.1 | ) | (496.8 | ) | ||||||||||
Property, plant and equipment, net | $ | 244.8 | $ | 247 | ||||||||||
Schedule of components of Other current liabilities | ' | |||||||||||||
The components of Other current liabilities were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Deferred compensation plan | $ | 4.5 | $ | 4.2 | ||||||||||
Warranty accrual | 5.9 | 6 | ||||||||||||
VAT liabilities | 5.3 | 5.6 | ||||||||||||
Restructuring accrual | 7.8 | 10.3 | ||||||||||||
Current notes payable | 2 | 2 | ||||||||||||
Other | 16.2 | 17.2 | ||||||||||||
Other current liabilities | $ | 41.7 | $ | 45.3 | ||||||||||
Schedule of components of Other non-current liabilities | ' | |||||||||||||
The components of Other non-current liabilities were as follows (in millions): | ||||||||||||||
September 28, | June 29, | |||||||||||||
2013 | 2013 | |||||||||||||
Pension accrual and post-employment benefits | $ | 95.7 | $ | 92 | ||||||||||
Deferred taxes | 9.8 | 11 | ||||||||||||
Restructuring accrual | 5.3 | 6.2 | ||||||||||||
Financing obligation | 32.3 | 32.4 | ||||||||||||
Non-current income taxes payable | 14.1 | 13.4 | ||||||||||||
Asset retirement obligations | 8.8 | 8.8 | ||||||||||||
Long-term deferred revenue | 25.8 | 25.8 | ||||||||||||
Other | 15.8 | 16.6 | ||||||||||||
Other non-current liabilities | $ | 207.6 | $ | 206.2 |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Investments and Fair Value Measurements | ' | |||||||||||||
Schedule of available-for-sale securities | ' | |||||||||||||
At September 28, 2013, the Company’s available-for-sale securities were as follows (in millions): | ||||||||||||||
Amortized | Gross | Gross | ||||||||||||
Cost / Carrying | Unrealized | Unrealized | Estimated | |||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Debt securities: | ||||||||||||||
U.S. treasuries | $ | 50.5 | $ | — | $ | — | $ | 50.5 | ||||||
U.S agencies | 119.3 | 0.1 | — | 119.4 | ||||||||||
Municipal bonds and sovereign debt instruments | 20.9 | — | — | 20.9 | ||||||||||
Asset-backed securities | 40.9 | — | (0.3 | ) | 40.6 | |||||||||
Corporate securities | 456.1 | 0.3 | (0.1 | ) | 456.3 | |||||||||
Total debt available-for-sale securities | $ | 687.7 | $ | 0.4 | $ | (0.4 | ) | $ | 687.7 | |||||
At June 29, 2013, the Company’s available-for-sale securities were as follows (in millions): | ||||||||||||||
Amortized | Gross | Gross | ||||||||||||
Cost / Carrying | Unrealized | Unrealized | Estimated | |||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Debt securities: | ||||||||||||||
U.S. treasuries | $ | 12 | $ | — | $ | — | $ | 12 | ||||||
U.S. agencies | 52.4 | — | — | 52.4 | ||||||||||
Municipal bonds and sovereign debt instruments | 12.7 | — | — | 12.7 | ||||||||||
Asset-backed securities | 15.5 | — | (0.3 | ) | 15.2 | |||||||||
Corporate securities | 135.1 | 0.7 | (0.1 | ) | 135.7 | |||||||||
Total debt available-for-sale securities | $ | 227.7 | $ | 0.7 | $ | (0.4 | ) | $ | 228 | |||||
Schedule of gross unrealized losses on available-for-sale securities | ' | |||||||||||||
At September 28, 2013, the Company’s total gross unrealized losses on available-for-sale securities, aggregated by type of investment instrument, were as follows (in millions): | ||||||||||||||
Less than 12 | Greater than 12 | Total | ||||||||||||
Months | Months | |||||||||||||
Asset-backed securities | $ | — | $ | 0.3 | $ | 0.3 | ||||||||
Corporate securities | 0.1 | — | 0.1 | |||||||||||
Total gross unrealized losses | $ | 0.1 | $ | 0.3 | $ | 0.4 | ||||||||
At June 29, 2013, the Company’s gross unrealized losses on available-for-sale securities, aggregated by type of investment instrument, were as follows (in millions): | ||||||||||||||
Less than | Greater than | |||||||||||||
12 Months | 12 Months | Total | ||||||||||||
Asset-backed securities | $ | — | $ | 0.3 | $ | 0.3 | ||||||||
Corporate securities | 0.1 | — | 0.1 | |||||||||||
Total gross unrealized losses | $ | 0.1 | $ | 0.3 | $ | 0.4 | ||||||||
Schedule of contractual maturities of available-for-sale securities | ' | |||||||||||||
At September 28, 2013, contractual maturities of the Company’s debt securities classified as available-for-sale securities were as follows (in millions): | ||||||||||||||
Amortized | ||||||||||||||
Cost / Carrying | Estimated | |||||||||||||
Cost | Fair Value | |||||||||||||
Amounts maturing in less than 1 year | $ | 479 | $ | 479 | ||||||||||
Amounts maturing in 1 - 5 years | 207.7 | 207.9 | ||||||||||||
Amounts maturing in more than 5 years | 1 | 0.8 | ||||||||||||
Total debt available-for-sale securities | $ | 687.7 | $ | 687.7 | ||||||||||
Schedule of assets measured at fair value | ' | |||||||||||||
Assets measured at fair value at September 28, 2013 are summarized below (in millions): | ||||||||||||||
Fair value measurement as of September 28, | ||||||||||||||
2013 | ||||||||||||||
Quoted Prices in | Significant | |||||||||||||
Active Markets | Other | |||||||||||||
for Identical | Observable | |||||||||||||
Assets | Inputs | |||||||||||||
Total | (Level 1) | (Level 2) | ||||||||||||
Assets: | ||||||||||||||
Debt available-for-sale securities | ||||||||||||||
U.S. treasuries | $ | 50.5 | $ | 50.5 | $ | — | ||||||||
U.S. agencies | 119.4 | — | 119.4 | |||||||||||
Municipal bonds and sovereign debt instruments | 20.9 | — | 20.9 | |||||||||||
Asset-backed securities | 40.6 | — | 40.6 | |||||||||||
Corporate securities | 456.3 | 456.3 | ||||||||||||
Total debt available-for-sale securities | 687.7 | 50.5 | 637.2 | |||||||||||
Money market funds | 324.4 | 324.4 | — | |||||||||||
Trading securities | 4.5 | 4.5 | — | |||||||||||
Total assets (1) | $ | 1,016.60 | $ | 379.4 | $ | 637.2 | ||||||||
(1) $374.3 million in cash and cash equivalents, $607.8 million in short-term investments, $29.7 million in restricted cash, and $4.8 million in other non-current assets on the Company’s Consolidated Balance Sheet. |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Goodwill | ' | ||||||||||
Schedule of changes in goodwill | ' | ||||||||||
The following table presents the changes in goodwill allocated to the reportable segments (in millions): | |||||||||||
Network and | Optical Security and | ||||||||||
Service Enablement (1) | Performance Products | Total | |||||||||
Balance as of June 29, 2013 | $ | 106.8 | $ | 8.3 | $ | 115.1 | |||||
Currency translation and other adjustments | 3 | — | 3 | ||||||||
Balance as of September 28, 2013 | $ | 109.8 | $ | 8.3 | $ | 118.1 | |||||
(1) In the first quarter of fiscal 2014, the Company changed the name of the CommTest segment to NSE. Refer to “Note 17. Operating Segments” for more details. |
Acquired_Developed_Technology_1
Acquired Developed Technology and Other Intangibles (Tables) | 3 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
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 and other intangibles (in millions): | |||||||||||
Gross | |||||||||||
Carrying | Accumulated | ||||||||||
As of September 28, 2013 | Amount | Amortization | Net | ||||||||
Acquired developed technology | $ | 550.1 | $ | (450.3 | ) | $ | 99.8 | ||||
Other | 220.3 | (182.1 | ) | 38.2 | |||||||
Total intangibles | $ | 770.4 | $ | (632.4 | ) | $ | 138 | ||||
Gross | |||||||||||
Carrying | Accumulated | ||||||||||
As of June 29, 2013 | Amount | Amortization | Net | ||||||||
Acquired developed technology | $ | 546.8 | $ | (437.4 | ) | $ | 109.4 | ||||
Other | 218.8 | (178.5 | ) | 40.3 | |||||||
Total intangibles | $ | 765.6 | $ | (615.9 | ) | $ | 149.7 | ||||
Schedule of estimated future amortization | ' | ||||||||||
Based on the carrying amount of acquired developed technology and other intangibles in continuing operations as of September 28, 2013, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions): | |||||||||||
Fiscal Years | |||||||||||
Remainder of 2014 | $ | 36.5 | |||||||||
2015 | 43.7 | ||||||||||
2016 | 22.9 | ||||||||||
2017 | 19.6 | ||||||||||
2018 | 11.1 | ||||||||||
Thereafter | 4.2 | ||||||||||
Total amortization | $ | 138 |
Debts_and_Letters_of_Credit_Ta
Debts and Letters of Credit (Tables) | 3 Months Ended | ||||
Sep. 28, 2013 | |||||
Debts and Letters of Credit | ' | ||||
Schedule of details of the Company's debt | ' | ||||
The following table presents details of the Company’s debt as of September 28, 2013 (in millions): | |||||
September 28, | |||||
2013 | |||||
0.625% senior convertible notes | $ | 518.2 | |||
1% senior convertible notes | — | ||||
Total convertible debt | 518.2 | ||||
Less: current portion | — | ||||
Total long-term debt | $ | 518.2 | |||
Schedule of carrying amounts of the liability and equity components of convertible debt | ' | ||||
The following table presents the carrying amounts of the liability and equity components (in millions): | |||||
September 28, | |||||
2013 | |||||
Carrying amount of equity component | $ | 134.4 | |||
Principal amount of 0.625% Senior Convertible Notes | $ | 650 | |||
Unamortized discount of liability component | (131.8 | ) | |||
Carrying amount of liability component | $ | 518.2 | |||
Summary of effective interest rate and interest expense for the contractual interest and the accretion of debt discount | ' | ||||
The following table presents the effective interest rate and the interest expense for the contractual interest and the accretion of debt discount (in millions, except for the effective interest rate): | |||||
Three Months Ended | |||||
September 28, | |||||
2013 | |||||
Effective interest rate | 5.4 | % | |||
Interest expense-contractual interest | $ | 0.4 | |||
Accretion of debt discount | 2.6 | ||||
Restructuring_and_Related_Char1
Restructuring and Related Charges (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Restructuring and Related Charges | ' | ||||||||||||||||
Schedule of various restructuring plans | ' | ||||||||||||||||
Three Months | |||||||||||||||||
Ended | Non-cash | ||||||||||||||||
Balance | September 28, | Settlements | Balance | ||||||||||||||
June 29, | 2013 | Cash | and Other | September 28, | |||||||||||||
2013 | Charges | Settlements | Adjustments | 2013 | |||||||||||||
Fiscal 2013 Plans | |||||||||||||||||
OSP Operational Realignment Plan (Workforce Reduction) | $ | 3.7 | $ | (0.9 | ) | $ | — | $ | — | $ | 2.8 | ||||||
NSE Lease Restructuring Plan: | |||||||||||||||||
Lease Costs | 5 | — | (0.4 | ) | — | 4.6 | |||||||||||
Equipment and Facility Costs | — | 0.1 | (0.1 | ) | — | — | |||||||||||
Total NSE Lease Restructuring Plan | $ | 5 | $ | 0.1 | $ | (0.5 | ) | $ | — | $ | 4.6 | ||||||
CCOP Outsourcing Plan (Workforce Reduction) | 0.7 | — | (0.1 | ) | — | 0.6 | |||||||||||
NSE Wireless Business Restructuring Plan (Workforce Reduction) | 1 | (0.1 | ) | (0.3 | ) | — | 0.6 | ||||||||||
Other plans | 0.5 | — | (0.5 | ) | — | — | |||||||||||
Fiscal 2012 Plans | |||||||||||||||||
NSE Operation and Repair Outsourcing Restructuring Plan: | |||||||||||||||||
Workforce Reduction | $ | 2 | $ | 0.1 | $ | (0.7 | ) | $ | — | $ | 1.4 | ||||||
Lease Costs | 0.1 | — | — | — | 0.1 | ||||||||||||
Total NSE Operation and Repair Outsourcing Restructuring Plan | $ | 2.1 | $ | 0.1 | $ | (0.7 | ) | $ | — | $ | 1.5 | ||||||
Other plans | 0.6 | — | (0.1 | ) | — | 0.5 | |||||||||||
Plans Prior to Fiscal 2012 | 2.9 | — | (0.5 | ) | 0.1 | 2.5 | |||||||||||
Total | $ | 16.5 | $ | (0.8 | ) | $ | (2.7 | ) | $ | 0.1 | $ | 13.1 | |||||
Ottawa Lease Exit Costs | $ | 3.7 | $ | — | $ | (0.3 | ) | $ | 0.1 | $ | 3.5 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Stock-Based Compensation | ' | |||||||
Schedule of the impact on the entity's results of operations of recording stock-based compensation by function | ' | |||||||
The impact on the Company’s results of operations of recording stock-based compensation by function for the three months ended September 28, 2013 and September 29, 2012 was as follows (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Cost of sales | $ | 2.4 | $ | 2.2 | ||||
Research and development | 3.7 | 2.9 | ||||||
Selling, general and administrative | 9.6 | 7.5 | ||||||
$ | 15.7 | $ | 12.6 | |||||
Monte Carlo simulation | ' | |||||||
Stock-Based Compensation | ' | |||||||
Schedule of assumptions used to estimate the fair value of awards on the date of grant | ' | |||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Volatility of common stock | 53.9 | % | 57.7 | % | ||||
Average volatility of peer companies | 58.6 | % | 58.3 | % | ||||
Average correlation coefficient of peer companies | 0.292 | 0.3214 | ||||||
Risk-free interest rate | 0.8 | % | 0.4 | % |
Employee_Defined_Benefit_Plans1
Employee Defined Benefit Plans (Tables) | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Employee Defined Benefit Plans | ' | |||||||
Schedule of net periodic cost for the pension plans | ' | |||||||
The following table presents the components of the net periodic cost for the pension plans (in millions): | ||||||||
Pension Benefits | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Service cost | $ | 0.1 | $ | 0.1 | ||||
Interest cost | 1.2 | 1.1 | ||||||
Expected return on plan assets | (0.4 | ) | (0.3 | ) | ||||
Net periodic benefit cost | $ | 0.9 | $ | 0.9 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Commitments and Contingencies | ' | |||||||
Schedule of changes in the entity's warranty reserve | ' | |||||||
The following table presents the changes in the Company’s warranty reserve (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Balance as of beginning of period | $ | 6.9 | $ | 8.1 | ||||
Provision for warranty | 2.3 | 1.9 | ||||||
Utilization of reserve | (1.4 | ) | (1.3 | ) | ||||
Adjustments related to pre-existing warranties (including changes in estimates) | (1.0 | ) | (1.1 | ) | ||||
Balance as of end of period | $ | 6.8 | $ | 7.6 | ||||
Schedule of future minimum financing payments of the financing obligations | ' | |||||||
As of September 28, 2013, future minimum financing payments of the financing obligations are as follows (in millions): | ||||||||
Fiscal Years | ||||||||
Remainder of 2014 | $ | 2.8 | ||||||
2015 | 3.7 | |||||||
2016 | 3.5 | |||||||
2017 | 3.5 | |||||||
2018 | 3.6 | |||||||
Thereafter | 33.8 | |||||||
Total | $ | 50.9 | ||||||
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Operating Segments | ' | |||||||
Schedule of information on reportable segments | ' | |||||||
Information on reportable segments is as follows (in millions): | ||||||||
Three Months Ended | ||||||||
September 28, | September 29, | |||||||
2013 | 2012 | |||||||
Net revenue: | ||||||||
Network and Service Enablement | $ | 171.9 | $ | 169.5 | ||||
Communications and Commercial Optical Products | 204.6 | 194.9 | ||||||
Optical Security and Performance Products | 52.5 | 56.5 | ||||||
Net revenue | $ | 429 | $ | 420.9 | ||||
Operating income (loss): | ||||||||
Network and Service Enablement | $ | 12.6 | $ | 16.8 | ||||
Communications and Commercial Optical Products | 27.2 | 23.8 | ||||||
Optical Security and Performance Products | 19.1 | 21.2 | ||||||
Corporate | (23.5 | ) | (23.1 | ) | ||||
Total segment operating income | 35.4 | 38.7 | ||||||
Unallocated amounts: | ||||||||
Stock-based compensation | (15.7 | ) | (12.6 | ) | ||||
Acquisition-related charges and amortization of intangibles | (14.1 | ) | (21.4 | ) | ||||
Loss on disposal of long-lived assets | (0.3 | ) | (1.3 | ) | ||||
Restructuring activities | 0.8 | (2.7 | ) | |||||
Other charges related to non-recurring activities | 0.5 | (0.6 | ) | |||||
Interest and other income | (0.6 | ) | (0.4 | ) | ||||
Interest expense | (5.2 | ) | (6.1 | ) | ||||
Income (loss) from continuing operations before income taxes | $ | 0.8 | $ | (6.4 | ) |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||
Sep. 28, 2013 | |||||
Discontinued Operations | ' | ||||
Schedule of calculation of gain in connection with the sale of the business | ' | ||||
During fiscal 2013 the Company recorded a gain of $0.6 million as a component of Loss from discontinued operations, net of tax on the Consolidated Statement of Operations in connection with the sale of the Hologram Business, calculated as follows (in millions): | |||||
Gross Proceeds | $ | 11.5 | |||
Less: carrying value of net assets | (10.6 | ) | |||
Less: selling costs | (0.3 | ) | |||
Gain | $ | 0.6 | |||
Schedule of net assets associated with Discontinued Operations | ' | ||||
The carrying value of the net assets sold as of October 12, 2012 are as follows (in millions): | |||||
October 12, | |||||
2012 | |||||
Accounts receivable, net | $ | 2.7 | |||
Inventories, net | 4.4 | ||||
Property, plant and equipment, net | 0.8 | ||||
Intangibles, net | 5.8 | ||||
Accounts payable and accrued expenses | (1.5 | ) | |||
Other current and non-current liabilities | (1.6 | ) | |||
Total net assets held for sale | $ | 10.6 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 28, 2014 | Jun. 29, 2013 |
Fiscal Years | ' | ' | ' | ' |
Number of weeks in fiscal year | ' | ' | '364 days | '364 days |
Fiscal 2013 Out-of-Period Adjustments | ' | ' | ' | ' |
Impact to net income due to out-of-period adjustments | ' | $1.90 | ' | ' |
Gross proceeds from sale of business | $11.50 | ' | ' | ' |
Minimum | ' | ' | ' | ' |
Fiscal Years | ' | ' | ' | ' |
Number of weeks in fiscal year | ' | ' | '364 days | ' |
Maximum | ' | ' | ' | ' |
Fiscal Years | ' | ' | ' | ' |
Number of weeks in fiscal year | ' | ' | '371 days | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 29, 2012 | Jun. 05, 2006 | Sep. 28, 2013 | Aug. 21, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
1% senior convertible notes | 1% senior convertible notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | Employee stock options and ESPP | Employee stock options and ESPP | RSUs | RSUs | |||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations, net of tax | $0.30 | ($9.80) | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from discontinued operations, net of tax | ' | -1.8 | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $0.30 | ($11.60) | ' | ' | ' | ' | ' | ' | ' | ' |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average number of common shares outstanding-Basic | 235.3 | 232.8 | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of dilutive securities from stock-based benefit plans (in shares) | 4.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average number of common shares outstanding-Diluted | 239.6 | 232.8 | ' | ' | ' | ' | ' | ' | ' | ' |
Basic net income (loss) per share from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations(in dollars per share) | $0 | ($0.04) | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations (in dollars per share) | ' | ($0.01) | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) (in dollars per share) | $0 | ($0.05) | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted net income (loss) per share from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0 | ($0.04) | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations (in dollars per share) | ' | ($0.01) | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) (in dollars per share) | $0 | ($0.05) | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total potentially dilutive securities (in shares) | 2 | 17 | ' | ' | ' | ' | 1.5 | 8.5 | 0.5 | 8.5 |
Convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on senior convertible notes (as a percent) | ' | ' | 1.00% | 1.00% | 0.63% | 0.63% | ' | ' | ' | ' |
Conversion price of debt (in dollars per share) | ' | ' | $30.30 | $30.30 | $18.83 | $18.83 | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 |
Unrealized losses on available-for-sale investments | Foreign currency translation adjustments | Defined benefit obligation, net of tax | Defined benefit obligation, net of tax | ||
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $8.60 | ($3.10) | $16.40 | ($4.70) | ($4.70) |
Other comprehensive income before reclassification adjustments | 11.2 | 0.3 | 10.9 | ' | ' |
Net current-period other comprehensive income | 11.2 | 0.3 | 10.9 | ' | ' |
Balance at the end of the period | $19.80 | ($2.80) | $27.30 | ($4.70) | ($4.70) |
Mergers_and_Acquisitions_Detai
Mergers and Acquisitions (Details) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 07, 2013 | Jun. 29, 2013 | Mar. 07, 2013 | Mar. 07, 2013 | Mar. 07, 2013 | Aug. 17, 2012 | Aug. 17, 2012 | Aug. 17, 2012 | Aug. 17, 2012 |
In Millions, unless otherwise specified | Arieso | Arieso | Arieso | Arieso | Arieso | GenComm | GenComm | GenComm | GenComm | ||
Developed technology | Customer relationships | Order backlog | Developed technology | Customer relationships | Order backlog | ||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase consideration paid in cash | ' | ' | $89.70 | ' | ' | ' | ' | $15.20 | ' | ' | ' |
Working capital adjustment and holdback payment | ' | ' | 12.8 | ' | ' | ' | ' | 3.8 | ' | ' | ' |
Minimum period after which the holdback payments will be released | ' | ' | '1 year | ' | ' | ' | ' | '1 year | ' | ' | ' |
Purchase price allocation to assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net tangible assets acquired | ' | ' | 0.2 | ' | ' | ' | ' | 5.9 | ' | ' | ' |
Intangible assets acquired | ' | ' | ' | ' | 32.8 | 14.5 | 1.4 | ' | 3.2 | 0.2 | 0.2 |
Goodwill | 118.1 | 115.1 | 40.8 | ' | ' | ' | ' | 5.7 | ' | ' | ' |
Total purchase price | ' | ' | 89.7 | ' | ' | ' | ' | 15.2 | ' | ' | ' |
Fair value of acquired tangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | 4.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | 8.4 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | 0.6 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | -0.3 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses, net of other assets | ' | ' | -1.4 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee related liabilities | ' | ' | -1.4 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | -1.7 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities, net | ' | ' | -8.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Net tangible assets acquired | ' | ' | 0.2 | ' | ' | ' | ' | 5.9 | ' | ' | ' |
Acquisition-related costs | ' | ' | ' | $1.80 | ' | ' | ' | ' | ' | ' | ' |
Additional business acquisition information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives of intangible assets | ' | ' | ' | ' | '5 years | '5 years | ' | ' | '4 years | '4 years | ' |
Balance_Sheet_and_Other_Detail2
Balance Sheet and Other Details (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 |
Activities and balances for allowance for doubtful accounts and allowance for sales returns | ' | ' |
Balance at Beginning of Period | $2.20 | ' |
Charged to Costs and Expenses | 0.5 | ' |
Deduction | -0.3 | ' |
Balance at End of Period | 2.4 | ' |
Inventories | ' | ' |
Finished goods | 69 | 85.7 |
Work in process | 37.7 | 37 |
Raw materials and purchased parts | 31.8 | 23.1 |
Inventories, net | 138.5 | 145.8 |
Allowance for doubtful accounts | ' | ' |
Activities and balances for allowance for doubtful accounts and allowance for sales returns | ' | ' |
Balance at Beginning of Period | 2.1 | ' |
Charged to Costs and Expenses | 0.5 | ' |
Deduction | -0.2 | ' |
Balance at End of Period | 2.4 | ' |
Allowance for sales returns | ' | ' |
Activities and balances for allowance for doubtful accounts and allowance for sales returns | ' | ' |
Balance at Beginning of Period | 0.1 | ' |
Deduction | ($0.10) | ' |
Balance_Sheet_and_Other_Detail3
Balance Sheet and Other Details (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 |
Prepayments and Other Current Assets | ' | ' | ' |
Prepayments | $36.40 | ' | $36 |
Advances to contract manufacturers | 13.7 | ' | 14.6 |
Deferred income tax | 4.9 | ' | 3.9 |
Refundable income taxes | 2.3 | ' | 2.3 |
Other receivables | 31.5 | ' | 26.1 |
Assets held for sale | 2.3 | ' | 2.2 |
Other current assets | 9.7 | ' | 10.2 |
Prepayments and other current assets | 100.8 | ' | 95.3 |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 760.9 | ' | 743.8 |
Less: Accumulated depreciation | -516.1 | ' | -496.8 |
Property, plant and equipment, net | 244.8 | ' | 247 |
Depreciation expense | 17.8 | 16.9 | ' |
Other Current Liabilities | ' | ' | ' |
Deferred compensation plan | 4.5 | ' | 4.2 |
Warranty accrual | 5.9 | ' | 6 |
VAT liabilities | 5.3 | ' | 5.6 |
Restructuring accrual | 7.8 | ' | 10.3 |
Current notes payable | 2 | ' | 2 |
Other | 16.2 | ' | 17.2 |
Other current liabilities | 41.7 | ' | 45.3 |
Other Non-Current Liabilities | ' | ' | ' |
Pension accrual and post-employment benefits | 95.7 | ' | 92 |
Deferred taxes | 9.8 | ' | 11 |
Restructuring accrual | 5.3 | ' | 6.2 |
Financing obligation | 32.3 | ' | 32.4 |
Non-current income taxes payable | 14.1 | ' | 13.4 |
Asset retirement obligations | 8.8 | ' | 8.8 |
Long-term deferred revenue | 25.8 | ' | 25.8 |
Other | 15.8 | ' | 16.6 |
Other non-current liabilities | 207.6 | ' | 206.2 |
Santa Rosa and Eningen site sale and leaseback transaction | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, net | 21.4 | ' | 21.8 |
Land | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 14.7 | ' | 14.6 |
Buildings and improvements | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 35.6 | ' | 34.9 |
Machinery and equipment | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 464.5 | ' | 453.8 |
Furniture, fixtures, software and office equipment | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 139.9 | ' | 132.9 |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 94.2 | ' | 92.7 |
Construction-in-progress | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | $12 | ' | $14.90 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | $687.70 | ' | $227.70 |
Gross Unrealized Gains | 0.4 | ' | 0.7 |
Gross Unrealized Losses | -0.4 | ' | -0.4 |
Available for Sale Investments at Fair Value | 687.7 | ' | 228 |
Other-than-temporary impairment loss | 0 | 0 | ' |
Gross unrealized losses on available-for-sale securities | ' | ' | ' |
Gross unrealized losses, Less than 12 Months | 0.1 | ' | 0.1 |
Gross unrealized losses, Greater than 12 Months | 0.3 | ' | 0.3 |
Total gross unrealized losses | 0.4 | ' | 0.4 |
Cash equivalents | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Available for Sale Investments at Fair Value | 83.6 | ' | 26.2 |
Short-term investments | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Available for Sale Investments at Fair Value | 603.3 | ' | 201 |
Other non-current assets | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Available for Sale Investments at Fair Value | 0.8 | ' | 0.8 |
Debt securities | ' | ' | ' |
Contractual maturities of debt securities classified as available-for-sale securities, Amortized cost | ' | ' | ' |
Amortized cost of amounts maturing in less than 1 year | 479 | ' | ' |
Amortized cost of amounts maturing in 1-5 years | 207.7 | ' | ' |
Amortized cost of amounts maturing in more than 5 years | 1 | ' | ' |
Total amortized cost of debt available-for-sale securities | 687.7 | ' | ' |
Contractual maturities of the debt securities classified as available-for-sale securities, Estimated fair value | ' | ' | ' |
Estimated fair value amounts maturing in less than 1 year | 479 | ' | ' |
Estimated fair value amounts maturing in 1 -5 years | 207.9 | ' | ' |
Estimated fair value amounts maturing in more than 5 years | 0.8 | ' | ' |
Total estimated fair value of debt available-for-sale securities | 687.7 | ' | ' |
Asset-backed securities | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 40.9 | ' | 15.5 |
Gross Unrealized Losses | -0.3 | ' | -0.3 |
Available for Sale Investments at Fair Value | 40.6 | ' | 15.2 |
Gross unrealized losses on available-for-sale securities | ' | ' | ' |
Gross unrealized losses, Greater than 12 Months | 0.3 | ' | 0.3 |
Total gross unrealized losses | 0.3 | ' | 0.3 |
U.S. treasuries | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 50.5 | ' | 12 |
Available for Sale Investments at Fair Value | 50.5 | ' | 12 |
U.S. Agencies | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 119.3 | ' | 52.4 |
Gross Unrealized Gains | 0.1 | ' | ' |
Available for Sale Investments at Fair Value | 119.4 | ' | 52.4 |
Municipal bonds and sovereign debt instruments | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 20.9 | ' | 12.7 |
Available for Sale Investments at Fair Value | 20.9 | ' | 12.7 |
Corporate securities | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 456.1 | ' | 135.1 |
Gross Unrealized Gains | 0.3 | ' | 0.7 |
Gross Unrealized Losses | -0.1 | ' | -0.1 |
Available for Sale Investments at Fair Value | 456.3 | ' | 135.7 |
Gross unrealized losses on available-for-sale securities | ' | ' | ' |
Gross unrealized losses, Less than 12 Months | 0.1 | ' | 0.1 |
Total gross unrealized losses | $0.10 | ' | $0.10 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements (Details 2) (Short-term investments, Trading securities, USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Millions, unless otherwise specified | ||
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | $4.50 | $4.20 |
Debt securities | ' | ' |
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | 0.8 | 0.8 |
Money market instruments and funds | ' | ' |
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | 0.4 | 0.3 |
Marketable equity investments | ' | ' |
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | $3.30 | $3.10 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements (Details 3) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 |
Maximum | ' | ' |
Foreign Currency Forward Contracts | ' | ' |
Foreign currency forward contracts, expiration period | '120 days | '120 days |
Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Total assets | 0 | 0 |
Recurring basis | Cash and cash equivalents | ' | ' |
Fair Value Measurements | ' | ' |
Total assets | 374.3 | ' |
Recurring basis | Short-term investments | ' | ' |
Fair Value Measurements | ' | ' |
Total assets | 607.8 | ' |
Recurring basis | Restricted cash | ' | ' |
Fair Value Measurements | ' | ' |
Total assets | 29.7 | ' |
Recurring basis | Other non-current assets | ' | ' |
Fair Value Measurements | ' | ' |
Total assets | 4.8 | ' |
Recurring basis | Total fair value | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 687.7 | ' |
Money market funds | 324.4 | ' |
Trading securities | 4.5 | ' |
Total assets | 1,016.60 | ' |
Recurring basis | Total fair value | U.S. treasuries | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 50.5 | ' |
Recurring basis | Total fair value | U.S. agencies | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 119.4 | ' |
Recurring basis | Total fair value | Municipal bonds and sovereign debt instruments | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 20.9 | ' |
Recurring basis | Total fair value | Asset-backed securities | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 40.6 | ' |
Recurring basis | Total fair value | Corporate securities | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 456.3 | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 50.5 | ' |
Money market funds | 324.4 | ' |
Trading securities | 4.5 | ' |
Total assets | 379.4 | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 50.5 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 637.2 | ' |
Total assets | 637.2 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. agencies | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 119.4 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bonds and sovereign debt instruments | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 20.9 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 40.6 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ' | ' |
Fair Value Measurements | ' | ' |
Total debt available-for-sale securities | 456.3 | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Jun. 29, 2013 |
Changes in goodwill | ' | ' |
Balance at the beginning of the period | $115.10 | ' |
Currency translation and other adjustments | 3 | ' |
Balance at the end of the period | 118.1 | 115.1 |
Impairment of goodwill | ' | 0 |
Network and Service Enablement | ' | ' |
Changes in goodwill | ' | ' |
Balance at the beginning of the period | 106.8 | ' |
Currency translation and other adjustments | 3 | ' |
Balance at the end of the period | 109.8 | ' |
Optical Security and Performance Products | ' | ' |
Changes in goodwill | ' | ' |
Balance at the end of the period | $8.30 | $8.30 |
Acquired_Developed_Technology_2
Acquired Developed Technology and Other Intangibles (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 |
Acquired developed technology and other intangibles | ' | ' | ' |
Gross Carrying Amount | $770.40 | ' | $765.60 |
Accumulated Amortization | -632.4 | ' | -615.9 |
Net carrying amount of intangibles | 138 | ' | 149.7 |
Amortization expenses | 14.1 | 20.6 | ' |
Estimated future amortization expense | ' | ' | ' |
Remainder of 2014 | 36.5 | ' | ' |
2015 | 43.7 | ' | ' |
2016 | 22.9 | ' | ' |
2017 | 19.6 | ' | ' |
2018 | 11.1 | ' | ' |
Thereafter | 4.2 | ' | ' |
Net carrying amount of intangibles | 138 | ' | 149.7 |
CCOP CPV Plan (Workforce reduction) | ' | ' | ' |
Acquired developed technology and other intangibles | ' | ' | ' |
Amortization expenses | ' | 2.6 | ' |
Acquired developed technology | ' | ' | ' |
Acquired developed technology and other intangibles | ' | ' | ' |
Gross Carrying Amount | 550.1 | ' | 546.8 |
Accumulated Amortization | -450.3 | ' | -437.4 |
Net carrying amount of intangibles | 99.8 | ' | 109.4 |
Estimated future amortization expense | ' | ' | ' |
Net carrying amount of intangibles | 99.8 | ' | 109.4 |
Other | ' | ' | ' |
Acquired developed technology and other intangibles | ' | ' | ' |
Gross Carrying Amount | 220.3 | ' | 218.8 |
Accumulated Amortization | -182.1 | ' | -178.5 |
Net carrying amount of intangibles | 38.2 | ' | 40.3 |
Estimated future amortization expense | ' | ' | ' |
Net carrying amount of intangibles | $38.20 | ' | $40.30 |
Debts_and_Letters_of_Credit_De
Debts and Letters of Credit (Details) (USD $) | Sep. 28, 2013 | Aug. 21, 2013 | Sep. 28, 2013 | Jun. 05, 2006 | Sep. 29, 2012 | Jun. 29, 2013 | Aug. 21, 2013 | Sep. 28, 2013 | Aug. 15, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
letter | Revolving Credit Facility | Revolving Credit Facility | 1% senior convertible notes | 1% senior convertible notes | 1% senior convertible notes | 2033 Notes | 2033 Notes | 2033 Notes | 2033 Notes | 2033 Notes | 2033 Notes | |
Other non-current assets | Maximum | Minimum | ||||||||||
D | ||||||||||||
Debt details | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of the liability component | ' | ' | ' | ' | ' | ' | $515,600,000 | ' | ' | ' | ' | ' |
Convertible Debt | 518,200,000 | ' | ' | ' | ' | ' | ' | 518,200,000 | ' | ' | ' | ' |
Total long-term debt | 518,200,000 | ' | ' | 266,500,000 | ' | ' | ' | 518,200,000 | ' | ' | ' | ' |
Interest rate on senior convertible notes (as a percent) | ' | ' | ' | 1.00% | 1.00% | ' | 0.63% | 0.63% | ' | ' | ' | ' |
Aggregate principal amount of convertible debt | ' | ' | ' | 425,000,000 | ' | ' | 650,000,000 | ' | ' | ' | ' | ' |
Proceeds from issuance of convertible notes after issuance costs | ' | ' | ' | 415,900,000 | ' | ' | 636,300,000 | ' | ' | ' | ' | ' |
Conversion price of convertible debt (in dollars per share) | ' | ' | ' | $30.30 | $30.30 | ' | $18.83 | $18.83 | ' | ' | ' | ' |
Conversion price of convertible debt as premium on closing price of common stock (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' |
Principal amount used for debt instrument conversion | ' | ' | ' | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' | ' |
Percentage of the conversion price that the closing price of the entity's common stock must exceed in order for the notes to be convertible | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% |
Number of trading days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be redeemable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 |
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 trading days in order for the notes to be redeemable | ' | ' | ' | ' | ' | ' | '30 days | '30 days | ' | ' | ' | ' |
Number of consecutive business days immediately following any 10 consecutive trading day period | ' | ' | ' | ' | ' | ' | '5 days | '5 days | ' | ' | ' | ' |
Number of consecutive trading days before five consecutive business-days | ' | ' | ' | ' | ' | ' | '10 days | '10 days | ' | ' | ' | ' |
Percentage of the trading price to the closing sale price of the entity's common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | ' |
Percentage of principal amount that the holder of the note may require the entity to repurchase the debt instrument | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' |
Percentage of principal amount at which the entity may redeem some or all of the notes for cash | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' |
Discount rate used to calculate the carrying value of the liability component of the convertible debt (as a percent) | ' | ' | ' | 8.10% | ' | ' | 5.40% | 5.40% | ' | ' | ' | ' |
Variable rate basis on which discount rate is based | ' | ' | ' | '7-year swap | ' | ' | ' | '5-year swap | ' | ' | ' | ' |
Effective interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.40% | ' | ' | ' | ' |
Carrying value of the equity component of convertible debt | ' | ' | ' | 158,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining term of convertible notes | ' | ' | ' | ' | ' | ' | ' | '4 years 10 months 24 days | ' | ' | ' | ' |
Deferred finance costs | ' | ' | ' | ' | ' | ' | 13,700,000 | 13,700,000 | ' | ' | ' | ' |
Liability component, debt issuance cost | ' | ' | ' | ' | ' | ' | 10,900,000 | 10,900,000 | ' | ' | ' | ' |
Equity component, debt issuance cost | ' | ' | ' | ' | ' | ' | 2,800,000 | 2,800,000 | ' | ' | ' | ' |
Unamortized portion of debt issuance cost | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | 10,700,000 | ' | ' |
Carrying amounts of the liability and equity components: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of equity component | ' | ' | ' | ' | ' | ' | 134,400,000 | 134,400,000 | ' | ' | ' | ' |
Principal amount of 0.625% Senior Convertible Notes | ' | ' | ' | ' | ' | ' | 650,000,000 | 650,000,000 | ' | ' | ' | ' |
Unamortized discount of liability component | ' | ' | ' | ' | ' | ' | ' | -131,800,000 | ' | ' | ' | ' |
Fair market value of convertible debt | ' | ' | ' | ' | ' | ' | ' | 695,100,000 | ' | ' | ' | ' |
Effective interest rate and interest expense for the contractual interest and the accretion of debt discount: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.40% | ' | ' | ' | ' |
Interest expense-contractual interest | ' | ' | ' | ' | 700,000 | ' | ' | 400,000 | ' | ' | ' | ' |
Accretion of debt discount | ' | ' | ' | ' | 4,200,000 | ' | ' | 2,600,000 | ' | ' | ' | ' |
Principal amount of debt repurchased | ' | ' | ' | ' | ' | 425,000,000 | ' | ' | ' | ' | ' | ' |
Revolving credit facility terminated | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Outstanding Letters of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of standby letters of credit | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | $33,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_and_Related_Char2
Restructuring and Related Charges (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
NSE Lease Restructuring Plan (Lease Costs) | Other plans | NSE Operation and Repair Outsourcing Restructuring Plan | Other plans | Plans Prior to Fiscal 2012 | Germantown and Beijing | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Lease Costs | Lease Costs | Lease Costs | Lease Costs | Ottawa Lease Exit Costs | Equipment and Facility Costs | ||||
employee | NSE Lease Restructuring Plan (Lease Costs) | OSP Operational Realignment Plan (Workforce Reduction) | OSP Operational Realignment Plan (Workforce Reduction) | CCOP Outsourcing Plan (Workforce reduction) | NSE Wireless Business Restructuring Plan (Workforce Reduction) | NSE Operation and Repair Outsourcing Restructuring Plan | NSE Germany Restructuring Plan | NSE Lease Restructuring Plan (Lease Costs) | NSE Operation and Repair Outsourcing Restructuring Plan | NSE Operation and Repair Outsourcing Restructuring Plan | Germantown and Beijing | NSE Lease Restructuring Plan (Lease Costs) | |||||||||
employee | employee | employee | employee | NSE Lease Restructuring Plan (Lease Costs) | |||||||||||||||||
Restructuring and Related Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees expected to be reduced | ' | ' | ' | ' | ' | 169 | ' | ' | ' | 86 | 126 | 43 | 63 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions eliminated as of the balance sheet date | ' | ' | ' | ' | ' | 152 | ' | ' | ' | 0 | ' | 13 | 55 | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual obligations under the operating lease, net of sublease income, fair value | $3.50 | ' | $3.70 | ' | ' | $0.10 | ' | ' | $4.60 | ' | ' | ' | ' | ' | $1.50 | ' | ' | ' | ' | ' | ' |
Summary of various restructuring plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual balance at the beginning of the period | 16.5 | ' | ' | 5 | 0.5 | 2.1 | 0.6 | 2.9 | ' | 3.7 | ' | 0.7 | 1 | 2 | ' | 5 | 0.1 | 0.1 | ' | 3.7 | ' |
Restructuring expenses | -0.8 | 2.7 | ' | 0.1 | ' | 0.1 | ' | ' | ' | -0.9 | ' | ' | -0.1 | 0.1 | ' | ' | ' | ' | ' | ' | 0.1 |
Cash Settlements | -2.7 | ' | ' | -0.5 | -0.5 | -0.7 | -0.1 | -0.5 | ' | ' | ' | -0.1 | -0.3 | -0.7 | ' | -0.4 | ' | ' | -0.1 | -0.3 | -0.1 |
Non-cash settlements and other adjustments | 0.1 | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' |
Accrual balance at the end of the period | $13.10 | ' | ' | $4.60 | ' | $1.50 | $0.50 | $2.50 | ' | $2.80 | $3.70 | $0.60 | $0.60 | $1.40 | ' | $4.60 | $0.10 | $0.10 | ' | $3.50 | ' |
Restructuring_and_Related_Char3
Restructuring and Related Charges (Details 2) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Millions, unless otherwise specified | ||
Restructuring accrual | ' | ' |
Non-current | $5.30 | $6.20 |
Other lease exit costs | ' | ' |
Non-current | $2.40 | $2.70 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Components of the Company's income tax (benefit) expense | ' | ' |
Total income tax expense | $0.50 | $3.40 |
Income tax benefit intraperiod tax allocation related to other comprehensive income | $4.20 | ' |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 |
In Millions, unless otherwise specified | ||
Income Tax | ' | ' |
Unrecognized tax benefits | $81.90 | $80.70 |
Accrued interest and penalties related to unrecognized tax benefits | 24.9 | ' |
Unrecognized tax benefits that may be recognized during the next twelve months | $22.10 | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 |
Stockholders' Equity | ' |
Outstanding common stock repurchased (in shares) | 7.4 |
Common stock repurchase price per share (in dollars per share) | $13.45 |
Purchase price reflected as a decrease to common stock | $100 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Stock-based compensation cost (in dollars) | $15.70 | $12.60 |
Stock-based compensation capitalized to inventory (in dollars) | 1.9 | ' |
Cost of sales | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Stock-based compensation cost (in dollars) | 2.4 | 2.2 |
Research and development | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Stock-based compensation cost (in dollars) | 3.7 | 2.9 |
Selling, general and administrative | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Stock-based compensation cost (in dollars) | 9.6 | 7.5 |
Options | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Options granted (in shares) | 0 | 0 |
Unrecognized stock-based compensation | 0.9 | ' |
Estimated amortization period | '1 year 1 month 6 days | ' |
Options | Minimum | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Vesting period | '3 years | ' |
Stock awards expiration period | '5 years | ' |
Options | Maximum | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Vesting period | '4 years | ' |
Stock awards expiration period | '10 years | ' |
Full Value Awards - Total | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Unrecognized stock-based compensation | 107.6 | ' |
Estimated amortization period | '2 years 3 months 18 days | ' |
Exercise price (in dollars per share) | $0 | ' |
Withholding taxes liability paid | 11.2 | 7.4 |
Full Value Awards - Total | Minimum | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Vesting period | '1 year | ' |
Full Value Awards - Total | Maximum | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Vesting period | '4 years | ' |
RSUs | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Granted (in shares) | 4.4 | 5.4 |
Restricted Stock Units with Time-based Conditions | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Vesting period | '3 years | ' |
Granted (in shares) | 3.8 | 4.7 |
Percentage of first tranche vested | 33.00% | ' |
Initial vesting period | '1 year | ' |
Subsequent vesting period | '2 years | ' |
Restricted Stock Units with Market Conditions (MSU) | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Vesting period | '3 years | ' |
Granted (in shares) | 0.6 | 0.7 |
Aggregate grant-date fair value (in dollars) | 9.2 | 9.8 |
1998 Employee Stock Purchase Plan | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Unrecognized stock-based compensation | $0.80 | ' |
Look-back period | '6 months | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (MSUs, Monte Carlo simulation) | 3 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
MSUs | Monte Carlo simulation | ' | ' |
Valuation Assumptions | ' | ' |
Volatility (as a percent) | 53.90% | 57.70% |
Average volatility of peer companies (as a percent) | 58.60% | 58.30% |
Average correlation coefficient of peer companies | 0.292 | 0.3214 |
Risk-free interest rate (as a percent) | 0.80% | 0.40% |
Employee_Defined_Benefit_Plans2
Employee Defined Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Pension Benefit Plans | ' | ' |
Components of the net periodic cost for the pension and benefits plans | ' | ' |
Service cost | $0.10 | $0.10 |
Interest cost | 1.2 | 1.1 |
Expected return on plan assets | -0.4 | -0.3 |
Net periodic benefit cost | 0.9 | 0.9 |
Defined benefit plan contribution during fiscal year | 5.2 | ' |
Change in plan assets: | ' | ' |
Contribution incurred | 1.6 | ' |
UK pension plan | ' | ' |
Change in plan assets: | ' | ' |
Employer contributions | $0.70 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 |
Commitments and Contingencies | ' | ' | ' |
Present value of guarantee obligation | $0 | ' | $0 |
Changes in warranty reserve | ' | ' | ' |
Balance as of beginning of period | 6.9 | 8.1 | ' |
Provision for warranty | 2.3 | 1.9 | ' |
Utilization of reserve | -1.4 | -1.3 | ' |
Adjustments related to pre-existing warranties (including changes in estimates) | -1 | -1.1 | ' |
Balance as of end of period | $6.80 | $7.60 | ' |
Minimum | ' | ' | ' |
Product Warranties | ' | ' | ' |
Warranty Term for most products | '3 months | ' | ' |
Maximum | ' | ' | ' |
Product Warranties | ' | ' | ' |
Warranty Term for most products | '1 year | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 31, 2011 | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 16, 2011 | Aug. 30, 2007 | Sep. 28, 2013 | Jun. 29, 2013 | Aug. 21, 2007 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Eningen | Eningen | Eningen | Eningen | Santa Rosa | Santa Rosa | Santa Rosa | Santa Rosa |
EUR (€) | USD ($) | USD ($) | sqft | USD ($) | USD ($) | USD ($) | sqft | |||
item | item | acre | ||||||||
item | ||||||||||
Financing Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of land sold (in square feet) | ' | ' | ' | ' | ' | 394,217 | ' | ' | ' | ' |
Area of land sold (in acres) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45 |
Number of buildings sold | ' | ' | ' | ' | ' | 9 | ' | ' | ' | 13 |
Area of property sold (in square feet) | ' | ' | ' | ' | ' | 386,132 | ' | ' | ' | 492,000 |
Number of buildings leased back | ' | ' | ' | ' | ' | 2 | ' | ' | ' | 7 |
Square feet of property leased back | ' | ' | ' | ' | ' | 158,154 | ' | ' | ' | 286,000 |
Net cash proceeds received from sale and lease back transaction | ' | ' | € 7.10 | ' | ' | ' | $32.20 | ' | ' | ' |
Description of lease terms | ' | ' | 'The lease term is 10 years with the right to cancel a certain portion of the lease after 5 years | ' | ' | ' | 'The lease terms range from a five-year lease with a one-year renewal option to a ten-year lease with two five-year renewal options | ' | ' | ' |
Financing obligation, current | ' | ' | ' | 0.1 | 0.1 | ' | ' | 1.1 | 1.1 | ' |
Financing obligation, noncurrent | 32.3 | 32.4 | ' | 5.2 | 5 | ' | ' | 27.1 | 27.4 | ' |
Letter of credit issued as a security | 33.6 | ' | ' | ' | ' | ' | ' | 3.8 | ' | ' |
Number of buildings included in the option to purchase at the end of the lease term | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Future Minimum Financing Payments Payment Plan Agreement for Software Licenses and Financing Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | 2.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 3.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 33.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $50.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Net revenue: | ' | ' |
Total net revenue | $429 | $420.90 |
Operating income (loss): | ' | ' |
Total operating income | 35.4 | 38.7 |
Unallocated amounts: | ' | ' |
Stock-based compensation | -15.7 | -12.6 |
Acquisition-related charges and amortization of intangibles | -14.1 | -21.4 |
Loss on disposal of long-lived assets | -0.3 | -1.3 |
Restructuring activities | 0.8 | -2.7 |
Other charges related to non-recurring activities | 0.5 | -0.6 |
Interest and other income | -0.6 | -0.4 |
Interest expense | -5.2 | -6.1 |
Income (loss) from continuing operations before income taxes | 0.8 | -6.4 |
Corporate | ' | ' |
Operating income (loss): | ' | ' |
Total operating income | -23.5 | -23.1 |
Network and Service Enablement | ' | ' |
Net revenue: | ' | ' |
Net Revenue | 171.9 | 169.5 |
Operating income (loss): | ' | ' |
Total operating income | 12.6 | 16.8 |
Communications and Commercial Optical Products | ' | ' |
Net revenue: | ' | ' |
Net Revenue | 204.6 | 194.9 |
Operating income (loss): | ' | ' |
Total operating income | 27.2 | 23.8 |
Optical Security and Performance Products | ' | ' |
Net revenue: | ' | ' |
Net Revenue | 52.5 | 56.5 |
Operating income (loss): | ' | ' |
Total operating income | $19.10 | $21.20 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 29, 2013 | Oct. 12, 2012 |
Discontinued Operations | ' | ' | ' | ' |
Gross proceeds from sale of business | $11.50 | ' | ' | ' |
Net loss from discontinued operations | ' | -1.8 | ' | ' |
Hologram Business | ' | ' | ' | ' |
Discontinued Operations | ' | ' | ' | ' |
Gross proceeds from sale of business | 11.5 | ' | 11.5 | ' |
Net Revenue | ' | 4.9 | ' | ' |
Net loss from discontinued operations | ' | -1.8 | ' | ' |
Tax effect associated with discontinued operation | ' | 0 | ' | ' |
Less: carrying value of net assets | ' | ' | -10.6 | ' |
Less: selling costs | ' | ' | -0.3 | ' |
Gain on sale of business | ' | ' | 0.6 | ' |
Net assets associated with Discontinued Operations | ' | ' | ' | ' |
Accounts receivable, net | ' | ' | ' | 2.7 |
Inventories, net | ' | ' | ' | 4.4 |
Property, plant and equipment, net | ' | ' | ' | 0.8 |
Intangibles, net | ' | ' | ' | 5.8 |
Accounts payable and accrued expenses | ' | ' | ' | -1.5 |
Other current and non-current liabilities | ' | ' | ' | -1.6 |
Total net assets held for sale of discontinued operations | ' | ' | ' | $10.60 |