Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 27, 2014 | Oct. 25, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'JDS UNIPHASE CORP /CA/ | ' |
Entity Central Index Key | '0000912093 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-27 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 231,853,262 |
Document Fiscal Year Focus | '2015 | ' |
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. 27, 2014 | Sep. 28, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' |
Net revenue | $433.60 | $429 |
Cost of sales | 224.3 | 232.4 |
Amortization of acquired technologies | 10 | 11.4 |
Gross profit | 199.3 | 185.2 |
Operating expenses: | ' | ' |
Research and development | 76.4 | 69.6 |
Selling, general and administrative | 110.7 | 107.1 |
Amortization of other intangibles | 5.1 | 2.7 |
Restructuring and related charges (benefits) | 2.9 | -0.8 |
Total operating expenses | 195.1 | 178.6 |
Income from operations | 4.2 | 6.6 |
Interest and other income (expense), net | 0.5 | -0.6 |
Interest expense | -8.3 | -5.2 |
(Loss) income before taxes | -3.6 | 0.8 |
Provision for income taxes | 6.1 | 0.5 |
Net (loss) income | ($9.70) | $0.30 |
Basic net (loss) income per share from: | ' | ' |
Basic | ($0.04) | $0 |
Diluted net (loss) income per share from: | ' | ' |
Diluted | ($0.04) | $0 |
Shares used in per share calculation: | ' | ' |
Basic | 230.8 | 235.3 |
Diluted | 230.8 | 239.6 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ' | ' |
Net (loss) income | ($9.70) | $0.30 |
Net change in available-for-sale investments, net of tax: | ' | ' |
Unrealized holding (losses) gains arising during period | -0.2 | 0.3 |
Net change in cumulative translation adjustments, net of tax | -18.5 | 10.9 |
Net change in defined benefit obligation, net of tax: | ' | ' |
Amortization of actuarial losses | 0.1 | ' |
Net change in other comprehensive (loss) income | -18.6 | 11.2 |
Comprehensive (loss) income | ($28.30) | $11.50 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $311.10 | $297.20 |
Short-term investments | 537.7 | 552.2 |
Restricted cash | 32.1 | 31.9 |
Accounts receivable, net (Note 6) | 295.6 | 296.2 |
Inventories, net | 155.2 | 153.3 |
Prepayments and other current assets | 80.1 | 78.7 |
Total current assets | 1,411.80 | 1,409.50 |
Property, plant and equipment, net | 292 | 288.8 |
Goodwill | 264.2 | 267 |
Intangibles, net | 160.8 | 177.8 |
Deferred income taxes | 173.3 | 183.3 |
Other non-current assets | 25.5 | 25.5 |
Total assets | 2,327.60 | 2,351.90 |
Current liabilities: | ' | ' |
Accounts payable | 152.6 | 137.1 |
Accrued payroll and related expenses | 72.3 | 79.9 |
Income taxes payable | 21.8 | 21.4 |
Deferred revenue | 78.3 | 77.5 |
Accrued expenses | 31.2 | 34.8 |
Other current liabilities | 53.4 | 57.7 |
Total current liabilities | 409.6 | 408.4 |
Long-term debt | 542.5 | 536.3 |
Other non-current liabilities | 208 | 219.5 |
Commitments and contingencies (Note 15) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred Stock, $0.001 par value; 1 million shares authorized; 1 share at September 27, 2014 and June 28, 2014, issued and outstanding | ' | ' |
Common Stock, $0.001 par value; 1 billion shares authorized; 232 million shares at September 27, 2014 and 230 million shares at June 28, 2014, issued and outstanding | 0.2 | 0.2 |
Additional paid-in capital | 69,969.80 | 69,957 |
Accumulated deficit | -68,795 | -68,780.60 |
Accumulated other comprehensive (loss) income | -7.5 | 11.1 |
Total stockholders equity | 1,167.50 | 1,187.70 |
Total liabilities and stockholders equity | $2,327.60 | $2,351.90 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
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 | 232,000,000 | 230,000,000 |
Common Stock, shares outstanding | 232,000,000 | 230,000,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
OPERATING ACTIVITIES: | ' | ' |
Net (loss) income | ($9.70) | $0.30 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation expense | 19.6 | 17.8 |
Amortization of acquired technologies and other intangibles | 15.1 | 14.1 |
Stock-based compensation | 15.7 | 15.7 |
Amortization of debt issuance costs and accretion of debt discount | 6.7 | 3.3 |
Other | 1.4 | 2 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -0.5 | -18.6 |
Inventories | -3.2 | 2.4 |
Other current and non-current assets | -2.8 | -4.4 |
Accounts payable | 17.9 | 29.5 |
Income taxes payable | 1.1 | -0.2 |
Deferred revenue, current and non-current | 0.2 | 1.7 |
Deferred taxes, net | 7.6 | -4.9 |
Accrued payroll and related expenses | -16.3 | -22.8 |
Accrued expenses and other current and non-current liabilities | -12 | -6.4 |
Net cash provided by operating activities | 40.8 | 29.5 |
INVESTING ACTIVITIES: | ' | ' |
Purchases of available-for-sale investments | -151.7 | -470.5 |
Maturities of available-for-sale investments | 145.1 | 46.8 |
Sales of available-for-sale investments | 19.6 | 25.7 |
Changes in restricted cash | -0.7 | -0.5 |
Acquisition of a business, net of cash acquired | ' | -0.1 |
Capital expenditures | -26.5 | -12.4 |
Proceeds from the sale of assets | 2.2 | 0.1 |
Net cash used in investing activities | -12 | -410.9 |
FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of senior convertible debt | 0 | 650 |
Payment of debt issuance costs | 0 | -13.5 |
Repurchase and retirement of common stock | -4.7 | -100 |
Payment of financing obligations | -10.1 | -0.3 |
Proceeds from exercise of employee stock options and employee stock purchase plan | 5.4 | 11.6 |
Net cash (used in) provided by financing activities | -9.4 | 547.8 |
Effect of exchange rate changes on cash and cash equivalents | -5.5 | 1.9 |
Increase in cash and cash equivalents | 13.9 | 168.3 |
Cash and cash equivalents at beginning of period | 297.2 | 281 |
Cash and cash equivalents at end of period | $311.10 | $449.30 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Sep. 27, 2014 | |
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 27, 2014 and for the three months ended September 27, 2014 and September 28, 2013 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 28, 2014. | |
The balance sheet as of June 28, 2014 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 27, 2014 and September 28, 2013 may not be indicative of results for the year ending June 27, 2015 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 2015 is a 52-week year ending on June 27, 2015. The Company’s fiscal 2014 was a 52-week year ending on June 28, 2014. | |
Change in Reportable Segments | |
During the first quarter of fiscal 2015 the Company reorganized its Network Service and Enablement (“NSE”) reportable segment into two separate reportable segments: Network Enablement (“NE”) and Service Enablement (“SE”). This change does not impact previously reported consolidated financial information. However, historical information related to the NSE reportable segment has been recast to reflect the new NE and SE reportable segment structure. Refer to “Note 16. Operating Segments” for more information. | |
JDSU Separation | |
On September 10, 2014, the Company announced plans to separate into two publicly traded companies: an optical components and commercial lasers company consisting of JDSU’s current Communications and Commercial Optical Products segment (“CCOP”), and a network and service enablement company consisting of JDSU’s current NE, SE and Optical Security and Performance Products (“OSP”) segments. The separation is expected to occur through a tax-free pro rata spinoff of CCOP to JDSU shareholders, though the structure is subject to change based upon various tax and regulatory factors. The Company expects the separation to be completed by the third calendar quarter of 2015. | |
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. | |
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. 27, 2014 | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | ' |
Note 2. Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance related to revenue recognition. This guidance will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company in the first quarter of fiscal 2018. This guidance allows for two methods of adoption: (a) full retrospective adoption, meaning the guidance is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying this guidance is recognized as an adjustment to the fiscal 2018 opening Accumulated deficit balance. The Company is evaluating the two adoption methods as well as the impact this new guidance will have on the consolidated financial statements and related disclosures. | |
In April 2014, the FASB issued authoritative guidance, which specifies that only disposals, such as a disposal of a major line of business, representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This guidance is effective for the Company in the first quarter of fiscal 2016 and will impact the treatment of the proposed tax-free spinoff of the CCOP business expected to be completed by the third calendar quarter of 2015 (the first quarter of fiscal 2016). Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Company is evaluating the impact of adopting this new accounting guidance on the consolidated financial statements. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
Earnings Per Share | ' | ||||||||
Note 3. Earnings Per Share | |||||||||
The following table sets forth the computation of basic and diluted net (loss) income per share (in millions, except per share data): | |||||||||
Three Months Ended | |||||||||
September 27, | September 28, | ||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net (loss) income | $ | -9.7 | $ | 0.3 | |||||
Denominator: | |||||||||
Weighted-average number of common shares outstanding: | |||||||||
Basic | 230.8 | 235.3 | |||||||
Effect of dilutive securities from stock-based benefit plans | - | 4.3 | |||||||
Diluted | 230.8 | 239.6 | |||||||
Net (loss) income per share from: | |||||||||
Basic | $ | -0.04 | $ | 0 | |||||
Diluted | $ | -0.04 | $ | 0 | |||||
The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive (in millions): | |||||||||
Three Months Ended | |||||||||
September 27, | September 28, | ||||||||
2014 (1) (2) | 2013 (2) | ||||||||
Stock options and employee stock purchase plan | 4 | 1.5 | |||||||
Restricted stock units | 10.4 | 0.5 | |||||||
Total potentially dilutive securities | 14.4 | 2 | |||||||
-1 | As the Company incurred a net loss in the period, 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. | ||||||||
-2 | The Company's 0.625% Senior Convertible Notes due 2033 (the "2033 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. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Note 4. Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The Company’s Accumulated other comprehensive income (loss) 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 27, 2014, the changes in accumulated other comprehensive income (loss) 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 28, 2014 | $ | -2.8 | $ | 26.2 | $ | -12.3 | $ | 11.1 | |||||
Other comprehensive loss before | |||||||||||||
reclassification adjustments | -0.2 | -18.5 | ― | -18.7 | |||||||||
Amounts reclassified from Accumulated other | |||||||||||||
comprehensive income | ― | ― | 0.1 | 0.1 | |||||||||
Net current-period other comprehensive income (loss) | -0.2 | -18.5 | 0.1 | -18.6 | |||||||||
Ending balance as of September 27, 2014 | $ | -3 | $ | 7.7 | $ | -12.2 | $ | -7.5 | |||||
-1 | Amount represents the amortization of actuarial losses included as a component of Selling, general and administrative expense (“SG&A”) in the Consolidated Statements of Operations for the three months ended September 27, 2014. There was no tax impact. Refer to “Note 14. Employee Defined Benefit Plans” for more details on the computation of net periodic cost for pension plans. |
Mergers_and_Acquisitions
Mergers and Acquisitions | 3 Months Ended |
Sep. 27, 2014 | |
Mergers and Acquisitions | ' |
Mergers and Acquisitions | ' |
Note 5. Mergers and Acquisitions | |
Holdback Payments Related to Fiscal 2014 Acquisitions | |
On January 6, 2014 ("Network Instruments Closing Date"), the Company completed the acquisition of Network Instruments, LLC (“Network Instruments”) a privately-held U.S. company for $208.5 million in cash, subject to final cash and working capital adjustments including holdback payments of approximately $20.0 million which are reserved for potential breaches of representations and warranties. During the first quarter of fiscal 2015 the Company released a $9.8 million holdback payment following the six-month anniversary of the Network Instruments Closing Date. The payment is classified as a financing activity within the Consolidated Statements of Cash Flows. The final holdback payment of $10.0 million is to be paid following the one-year anniversary of the Network Instruments Closing Date. |
Balance_Sheet_and_Other_Detail
Balance Sheet and Other Details | 3 Months Ended | |||||||||||||
Sep. 27, 2014 | ||||||||||||||
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 28, | Charged to Costs | September 27, | ||||||||||||
2014 | and Expenses | Adjustments (1) | 2014 | |||||||||||
Allowance for doubtful accounts | $ | 3 | $ | 0.2 | $ | -0.1 | $ | 3.1 | ||||||
Allowance for sales returns | 0.5 | 0.1 | -0.2 | 0.4 | ||||||||||
Total accounts receivable reserves | $ | 3.5 | $ | 0.3 | $ | -0.3 | $ | 3.5 | ||||||
-1 | Represents the effect of currency translation adjustments and write-offs 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 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Finished goods | $ | 81.5 | $ | 78.4 | ||||||||||
Work in process | 39.5 | 40.1 | ||||||||||||
Raw materials | 34.2 | 34.8 | ||||||||||||
Inventories, net | $ | 155.2 | $ | 153.3 | ||||||||||
Prepayments and other current assets | ||||||||||||||
The components of Prepayments and other current assets were as follows (in millions): | ||||||||||||||
September 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Prepayments | $ | 36.7 | $ | 33.3 | ||||||||||
Other current assets | 43.4 | 45.4 | ||||||||||||
Prepayments and other current assets | $ | 80.1 | $ | 78.7 | ||||||||||
Other current liabilities | ||||||||||||||
The components of Other current liabilities were as follows (in millions): | ||||||||||||||
September 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Deferred compensation plan | $ | 3.9 | $ | 3.9 | ||||||||||
Warranty | 4.9 | 5.3 | ||||||||||||
Restructuring | 11.1 | 14.5 | ||||||||||||
Holdback liabilities from acquisitions | 14.8 | 22.5 | ||||||||||||
Other | 18.7 | 11.5 | ||||||||||||
Other current liabilities | $ | 53.4 | $ | 57.7 | ||||||||||
Other non-current liabilities | ||||||||||||||
The components of Other non-current liabilities were as follows (in millions): | ||||||||||||||
September 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Pension and post-employment benefits | $ | 100.6 | $ | 107.3 | ||||||||||
Financing obligation | 31 | 31.4 | ||||||||||||
Long-term deferred revenue | 22.5 | 22.7 | ||||||||||||
Other | 53.9 | 58.1 | ||||||||||||
Other non-current liabilities | $ | 208 | $ | 219.5 |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 3 Months Ended | ||||||||||||||
Sep. 27, 2014 | |||||||||||||||
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. | |||||||||||||||
As of September 27, 2014, 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 | $ | 27.5 | $ | - | $ | - | $ | 27.5 | |||||||
U.S agencies | 87.8 | 0.1 | - | 87.9 | |||||||||||
Municipal bonds and sovereign debt instruments | 15.4 | - | - | 15.4 | |||||||||||
Asset-backed securities | 87.3 | - | -0.2 | 87.1 | |||||||||||
Corporate securities | 357.1 | 0.2 | -0.1 | 357.2 | |||||||||||
Total debt available-for-sale securities | $ | 575.1 | $ | 0.3 | $ | -0.3 | $ | 575.1 | |||||||
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 short-term investments. As of September 27, 2014, of the total estimated fair value, $40.5 million was classified as cash equivalents, $533.8 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, as of September 27, 2014, the Company’s short-term investments classified as trading securities, related to the deferred compensation plan, were $3.9 million, of which $0.6 million was invested in debt securities, $0.5 million was invested in money market instruments and funds and $2.8 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net. | |||||||||||||||
During the three months ended September 27, 2014 and September 28, 2013, the Company recorded no other-than-temporary impairment charges. | |||||||||||||||
As of September 27, 2014, 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 | $ | 412 | $ | 412 | |||||||||||
Amounts maturing in 1 - 5 years | 162.1 | 162.3 | |||||||||||||
Amounts maturing in more than 5 years | 1 | 0.8 | |||||||||||||
Total debt available-for-sale securities | $ | 575.1 | $ | 575.1 | |||||||||||
As of June 28, 2014, 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 | $ | 36.8 | $ | - | $ | - | $ | 36.8 | |||||||
U.S. agencies | 70 | - | - | 70 | |||||||||||
Municipal bonds and sovereign debt instruments | 16.8 | - | - | 16.8 | |||||||||||
Asset-backed securities | 94.7 | 0.1 | -0.2 | 94.6 | |||||||||||
Corporate securities | 370.5 | 0.2 | - | 370.7 | |||||||||||
Total debt available-for-sale securities | $ | 588.8 | $ | 0.3 | $ | -0.2 | $ | 588.9 | |||||||
As of June 28, 2014, of the total estimated fair value, $39.8 million was classified as cash equivalents, $548.3 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, as of June 28, 2014, the Company’s short-term investments classified as trading securities, related to the deferred compensation plan, were $3.9 million, of which $0.4 million was invested in debt securities, $0.7 million was invested in money market instruments and funds and $2.8 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net. | |||||||||||||||
Fair Value Measurements | |||||||||||||||
Assets measured at fair value as of September 27, 2014 are summarized below (in millions): | |||||||||||||||
Fair value measurement as of September 27, 2014 | |||||||||||||||
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 | $ | 27.5 | $ | 27.5 | $ | ― | |||||||||
U.S. agencies | 87.9 | ― | 87.9 | ||||||||||||
Municipal bonds and sovereign debt instruments | 15.4 | ― | 15.4 | ||||||||||||
Asset-backed securities | 87.1 | ― | 87.1 | ||||||||||||
Corporate securities | 357.2 | 357.2 | |||||||||||||
Total debt available-for-sale securities | 575.1 | 27.5 | 547.6 | ||||||||||||
Money market funds | 197 | 197 | ― | ||||||||||||
Trading securities | 3.9 | 3.9 | ― | ||||||||||||
Total assets (1) | $ | 776 | $ | 228.4 | $ | 547.6 | |||||||||
-1 | $202.0 million in cash and cash equivalents, $537.7 million in short-term investments, $31.7 million in restricted cash, and $4.6 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 generally include money market funds and U.S. Treasury securities as they are traded with sufficient volume and frequency of transactions. | |||||||||||||||
Level 2 includes financial instruments for which the valuations are based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 2 instruments of the Company generally include certain U.S. and foreign government and agency securities, commercial paper, corporate and municipal bonds and notes, asset-backed securities, 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 28, 2014 and during the three months ended September 27, 2014, 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 quarter end; therefore, the fair value of the contracts as of both September 27, 2014 and June 28, 2014, 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. 27, 2014 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
Note 8. Goodwill | |||||||||||||||||
The following table presents the changes in goodwill allocated to the reportable segments (in millions): | |||||||||||||||||
Communications | Optical Security | ||||||||||||||||
Network | Service | and Commercial | and Performance | ||||||||||||||
Enablement (1) | Enablement (1) | Optical Products (2) | Products | Total | |||||||||||||
Balance as of June 28, 2014 | $ | 158 | $ | 94.8 | $ | 5.9 | $ | 8.3 | $ | 267 | |||||||
Currency translation and other adjustments | -1.6 | -0.9 | -0.3 | ― | -2.8 | ||||||||||||
Balance as of September 27, 2014 | $ | 156.4 | $ | 93.9 | $ | 5.6 | $ | 8.3 | $ | 264.2 | |||||||
-1 | In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, NE and SE. The goodwill of NSE was allocated between the two new segments based on their relative fair value as of June 29, 2014, the first day of fiscal 2015. The Company determined that based on its cash flow structure, organizational structure and the financial information provided to and reviewed by Management, NE and SE also represented new reporting units for fiscal 2015. Refer to “Note. 16. Operating Segments” for more information. | ||||||||||||||||
-2 | The goodwill balance as of September 27, 2014 for the CCOP segment relates to the acquisition of Time-Bandwidth and has been allocated to the Lasers reporting unit. | ||||||||||||||||
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 2014, the Company completed the annual impairment test of goodwill, which indicated there was no goodwill impairment. | |||||||||||||||||
As the Company reorganized its NSE segment into two reportable segments during the first quarter of fiscal 2015, the goodwill allocated to the new NE and SE reporting units was reviewed under the two-step quantitative goodwill impairment test in accordance with the authoritative guidance. Under the first step of the authoritative guidance for impairment testing, the fair value of the new reporting units was determined based on a combination of the income approach, which estimates the fair value based on the future discounted cash flows, and the market approach, which estimates the fair value based on comparable market prices. Based on the first step of the analysis, the Company determined that the fair value of each reporting unit is significantly above its carrying amount. As such, the Company was not required to perform step two of the analysis on the new reporting units to determine the amount of the impairment loss. The Company recorded no impairment charge as a result of the interim period impairment test performed during the three months ended September 27, 2014. There were no events or changes in circumstances which triggered an impairment review for the Lasers and OSP reporting units during the three months ended September 27, 2014. |
Acquired_Developed_Technology_
Acquired Developed Technology and Other Intangibles | 3 Months Ended | |||||||||||||
Sep. 27, 2014 | ||||||||||||||
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, customer relationships and other intangibles (in millions): | ||||||||||||||
Gross | ||||||||||||||
Carrying | Accumulated | |||||||||||||
As of September 27, 2014 | Amount | Amortization | Net | |||||||||||
Acquired developed technology | $ | 543.2 | $ | -447.2 | $ | 96 | ||||||||
Customer relationships | 201.4 | -143.7 | 57.7 | |||||||||||
Other | 23.1 | -21.4 | 1.7 | |||||||||||
Total intangibles subject to amortization | 767.7 | -612.3 | 155.4 | |||||||||||
In-process research and development intangibles | 5.4 | - | 5.4 | |||||||||||
Total intangibles | $ | 773.1 | $ | -612.3 | $ | 160.8 | ||||||||
Gross | ||||||||||||||
Carrying | Accumulated | |||||||||||||
As of June 28, 2014 | Amount | Amortization | Net | |||||||||||
Acquired developed technology | $ | 548.8 | $ | -443.1 | $ | 105.7 | ||||||||
Customer relationships | 205.2 | -142.3 | 62.9 | |||||||||||
Other | 24.2 | -22.1 | 2.1 | |||||||||||
Total intangibles subject to amortization | 778.2 | -607.5 | 170.7 | |||||||||||
In-process research and development intangibles | 7.1 | - | 7.1 | |||||||||||
Total intangibles | $ | 785.3 | $ | -607.5 | $ | 177.8 | ||||||||
During the three months ended September 27, 2014, the Company completed its in-process research and development (“IPR&D”) project related to the fiscal 2014 acquisition of Network Instruments. Accordingly, $1.7 million was transferred from indefinite life intangible assets to acquired developed technology intangible assets and began amortizing over its useful life of fifty-two months. | ||||||||||||||
During the three months ended September 27, 2014 and September 28, 2013, the Company recorded $15.1 million and $14.1 million respectively, of amortization expense relating to acquired developed technology, customer relationships and other intangibles. | ||||||||||||||
Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of September 27, 2014, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions): | ||||||||||||||
Fiscal Years | ||||||||||||||
Remainder of 2015 | $ | 44.4 | ||||||||||||
2016 | 38.7 | |||||||||||||
2017 | 35.4 | |||||||||||||
2018 | 22.7 | |||||||||||||
2019 | 10.8 | |||||||||||||
Thereafter | 3.4 | |||||||||||||
Total amortization | $ | 155.4 | ||||||||||||
The acquired developed technology, customer relationships 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. 27, 2014 | |||||||||
Debts and Letters of Credit | ' | ||||||||
Debts and Letters of Credit | ' | ||||||||
Note 10. Debts and Letters of Credit | |||||||||
As of September 27, 2014 and June 28, 2014 the Company’s Long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component of the 0.625% Senior Convertible Notes as discussed below. The following table presents the details of the Company’s debt (in millions): | |||||||||
September 27, | June 28, | ||||||||
2014 | 2014 | ||||||||
Principal amount of 0.625% Senior Convertible Notes | $ | 650 | $ | 650 | |||||
Unamortized discount of liability component | -107.5 | -113.7 | |||||||
Carrying amount of liability component | $ | 542.5 | $ | 536.3 | |||||
Carrying amount of equity component (1) | $ | 134.4 | $ | 134.4 | |||||
-1 | Included in Additional paid-in-capital on the Consolidated Balance Sheets. | ||||||||
The Company was in compliance with all debt covenants and held no short-term debt as of September 27, 2014 and June 28, 2014, respectively. | |||||||||
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. The 2033 Notes and its terms are described in “Note 10. Debts and Letters of Credit” of the Company’s Annual Report on Form 10-K for the year ended June 28, 2014. During the three months ended September 27, 2014, the price of the Company's common stock did not exceed the initial conversion price of $18.83 per share and no conversion features were triggered. | |||||||||
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 27, 2014, the expected remaining term of the 2033 Notes is 3.9 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 27, 2014, the unamortized portion of the debt issuance costs related to the 2033 Notes was $8.7 million, which was included in Other non-current assets on the Consolidated Balance Sheets. | |||||||||
Based on quoted market prices as of September 27, 2014 and June 28, 2014, the fair market value of the 2033 Notes was approximately $657.1 million and $653.0 million, respectively. 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 27, | September 28, | ||||||||
2014 | 2013 | ||||||||
Effective interest rate | 5.4 | % | 5.4 | % | |||||
Interest expense-contractual interest | $ | 1 | $ | 0.4 | |||||
Accretion of debt discount | 6.2 | 2.6 | |||||||
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 27, 2014, the Company had 13 standby letters of credit totaling $35.5 million. |
Restructuring_and_Related_Char
Restructuring and Related Charges | 3 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
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, rationalize the manufacturing of its products and align its business in response to market conditions. As of September 27, 2014, the Company’s total restructuring accrual was $21.4 million. During the three months ended September 27, 2014 and September 28, 2013, the Company recorded restructuring related expenses of $2.9 million and a benefit from restructuring activities of $0.8 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 27, 2014, were as follows (in millions): | |||||||||||||||||
Three | |||||||||||||||||
Months Ended | Non-cash | ||||||||||||||||
Balance | September 27, | Settlements | Balance | ||||||||||||||
June 28, | 2014 | Cash | and Other | September 27, | |||||||||||||
2014 | Charges | Settlements | Adjustments | 2014 | |||||||||||||
Fiscal 2015 Plan | |||||||||||||||||
CCOP Robbinsville Closure Plan | $ | - | $ | 1.5 | $ | -0.2 | $ | - | $ | 1.3 | |||||||
(Workforce Reduction) | |||||||||||||||||
Fiscal 2014 Plans | |||||||||||||||||
NE Realignment Plan | |||||||||||||||||
(Workforce Reduction) | 4.6 | 0.3 | -3.2 | - | 1.7 | ||||||||||||
CCOP Serangoon Closure Plan | |||||||||||||||||
(Workforce Reduction) | 1.7 | - | -0.2 | - | 1.5 | ||||||||||||
Shared Services Restructuring Plan | |||||||||||||||||
(Workforce Reduction) | 1.8 | - | -0.5 | - | 1.3 | ||||||||||||
NE Product Strategy Restructuring Plan | |||||||||||||||||
(Workforce Reduction) | 4.4 | - | -0.6 | -0.2 | 3.6 | ||||||||||||
NE Lease Restructuring Plan (first floor) | 6.9 | 0.3 | -0.8 | - | 6.4 | ||||||||||||
Central Finance and IT Restructuring Plan | |||||||||||||||||
(Workforce Reduction) | 1.5 | - | - | -0.1 | 1.4 | ||||||||||||
Fiscal 2013 Plans | |||||||||||||||||
NE Lease Restructuring Plan | 2.1 | -0.1 | -0.2 | - | 1.8 | ||||||||||||
CCOP Outsourcing Plan | |||||||||||||||||
(Workforce Reduction) | 0.5 | - | -0.1 | - | 0.4 | ||||||||||||
Other plans | 0.2 | 0.4 | -0.6 | - | - | ||||||||||||
Plans Prior to Fiscal 2013 | 2.5 | 0.5 | -0.8 | -0.2 | 2 | ||||||||||||
Total | $ | 26.2 | $ | 2.9 | $ | -7.2 | $ | -0.5 | $ | 21.4 | |||||||
Ottawa Lease Exit Costs | $ | 3.1 | $ | - | $ | -0.2 | $ | -0.1 | $ | 2.8 | |||||||
As of September 27, 2014 and June 28, 2014, the Company included the long-term portion of the restructuring liability of $10.3 million and $11.7 million, respectively, as the restructuring accrual, a component under Other non-current liabilities, and the short-term portion as restructuring accrual, a 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 was included in SG&A expenses. The fair value of the remaining contractual obligations, net of sublease income is $2.8 million and $3.1 million as of September 27, 2014 and June 28, 2014 respectively. The Company included the long-term portion of the contract obligations of $1.8 million and $2.0 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 2015 Plan | |||||||||||||||||
CCOP Robbinsville Closure Plan | |||||||||||||||||
During the first quarter of fiscal 2015, Management approved a plan in the CCOP segment to optimize operations and gain efficiencies by closing the Robbinsville, New Jersey site and consolidating roles and responsibilities across North America. As a result, a restructuring charge of $1.5 million was recorded for severance and employee benefits for approximately 30 employees primarily in manufacturing, research and development (“R&D”) and SG&A functions located in North America. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2015. | |||||||||||||||||
Fiscal 2014 Plans | |||||||||||||||||
NE Realignment Plan | |||||||||||||||||
During the fourth quarter of fiscal 2014, Management approved a plan in the NE segment to realign its operations and strategy to allow for greater investment in high-growth areas. As a result, 108 employees primarily in manufacturing, R&D and SG&A functions located in United States, Latin America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2015. | |||||||||||||||||
CCOP Serangoon Closure Plan | |||||||||||||||||
During the fourth quarter of fiscal 2014, Management approved a plan in the CCOP segment to close the Serangoon office located in Singapore and move to a lower cost region in order to reduce manufacturing and R&D expenses. As a result, 42 employees primarily in manufacturing and R&D functions were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2015. | |||||||||||||||||
Shared Services Restructuring Plan | |||||||||||||||||
During the fourth quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in the Shared Services functions in order to reduce cost, standardize global processes and establish a more efficient organization. As a result, 46 employees primarily in the general and administrative functions located in the United States, Latin America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2016. | |||||||||||||||||
NE Product Strategy Restructuring Plan | |||||||||||||||||
During the third quarter of fiscal 2014, Management approved a plan in the NE segment to realign its services, support and product resources in response to market conditions in the mobile assurance market and to increase focus on software products and next generation solutions through acquisitions and R&D. As a result, 62 employees primarily in SG&A and manufacturing functions located in North America, Latin America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2020. | |||||||||||||||||
NE Lease Restructuring Plan (first floor) | |||||||||||||||||
During the second quarter of fiscal 2014, Management approved a plan in the NE segment to exit the remaining space in Germantown, Maryland. As of June 28, 2014, the Company exited the workspace in Germantown under the plan. The fair value of the remaining contractual obligations, net of sublease income as of September 27, 2014 was $6.4 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019. | |||||||||||||||||
Central Finance and Information Technology (“IT”) Restructuring Plan | |||||||||||||||||
During the second quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in the Finance and IT organization to align with the future state of the organizations under new executive management and move positions to lower-cost locations where appropriate. As a result, 22 employees primarily in SG&A functions located in North America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2022. | |||||||||||||||||
Fiscal 2013 Plans | |||||||||||||||||
NE 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 NE segment. As of June 29, 2013, the Company exited the second floor workspace in Germantown and Beijing under the plan. The fair value of the remaining contractual obligations, net of sublease income as of September 27, 2014 was $1.8 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019. Final payments related to the Beijing lease costs were paid during the first quarter of fiscal 2014. | |||||||||||||||||
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 as part of its continuous efforts to optimize its supply chain. As a result, 45 employees primarily in manufacturing, R&D and SG&A functions located in the United States were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2015. | |||||||||||||||||
Other Plans | |||||||||||||||||
Other plans account for an immaterial portion of the total restructuring accrual, with minimal or no revisions recorded. | |||||||||||||||||
Plans Prior to Fiscal 2013 | |||||||||||||||||
The restructuring accrual for plans that commenced prior to fiscal year 2013 was $2.0 million. Of this amount, $0.8 million is related to severance and benefits accrual for the NE 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 2013. |
Income_Tax
Income Tax | 3 Months Ended |
Sep. 27, 2014 | |
Income Tax | ' |
Income Tax | ' |
Note 12. Income Tax | |
The Company recorded an income tax expense of $6.1 million and $0.5 million for the three months ended September 27, 2014 and September 28, 2013, respectively. | |
The income tax expense recorded for the three months ended September 27, 2014 and September 28, 2013, primarily relates 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. | |
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 income or loss 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, due to the income tax benefit recorded in continuing operations under the income tax intraperiod tax allocation rules, and the recognition of the unrecognized tax benefit. | |
As of September 27, 2014 and June 28, 2014 the Company’s unrecognized tax benefits totaled $59.5 million and $60.3 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $24.4 million accrued for the payment of interest and penalties at September 27, 2014. The unrecognized tax benefits that may be recognized during the next twelve months is approximately $23.2 million. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||
Sep. 27, 2014 | |||||||
Stock-Based Compensation | ' | ||||||
Stock-Based Compensation | ' | ||||||
Note 13. 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 27, 2014 and September 28, 2013 was as follows (in millions): | |||||||
Three Months Ended | |||||||
September 27, | September 28, | ||||||
2014 | 2013 | ||||||
Cost of sales | $ | 2.4 | $ | 2.4 | |||
Research and development | 3.9 | 3.7 | |||||
Selling, general and administrative | 9.4 | 9.6 | |||||
$ | 15.7 | $ | 15.7 | ||||
Approximately $1.9 million of stock-based compensation was capitalized in inventory at September 27, 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. | |||||||
During the first quarter ended September 27, 2014 and September 28, 2013, the Company granted 4.8 million and 4.4 million RSUs, of which 0.7 million and 0.6 million, respectively, are performance-based RSUs with market conditions (“MSUs”). These MSU 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 2015 and fiscal 2014 was estimated to be $8.5 million and $9.2 million, respectively, and was calculated using a Monte Carlo simulation. The remaining 4.1 million and 3.8 million granted during the first quarter ended September 27, 2014 and September 28, 2013 are mainly time-based RSUs. The majority of these time-based RSUs vest over three years, with 33% vesting after one year and the balance vesting quarterly over the remaining two years. | |||||||
As of September 27, 2014, $106.5 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 2.4 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 three months ended September 27, 2014 and September 28, 2013, the Company paid $8.3 million and $11.2 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 27, | September 28, | ||||||
2014 | 2013 | ||||||
Volatility of common stock | 40.8 | % | 53.9 | % | |||
Average volatility of peer companies | 53.4 | % | 58.6 | % | |||
Average correlation coefficient of peer companies | 0.2156 | 0.292 | |||||
Risk-free interest rate | 0.6 | % | 0.8 | % |
Employee_Defined_Benefit_Plans
Employee Defined Benefit Plans | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Employee Defined Benefit Plans | ' | |||||||
Employee Defined Benefit Plans | ' | |||||||
Note 14. Employee Defined Benefit Plans | ||||||||
The Company sponsors significant qualified and non-qualified pension plans for certain past and present employees primarily in the United Kingdom (“U.K.”), Germany and Switzerland. The Company also is responsible for the non-pension post-retirement benefit obligation assumed from a past acquisition. Most of the plans have been closed to new participants and no additional service costs are being accrued, except for certain plans in Germany and Switzerland, assumed in connection with acquisitions during fiscal 2010 and fiscal 2014. Benefits are generally based upon years of service and compensation or stated amounts for each year of service. | ||||||||
As of September 27, 2014, the U.K. plan and Switzerland plan were partially funded while the other plans were unfunded. The Company’s policy for funded plans is to make contributions equal to or greater than the requirements prescribed by law or regulation. For unfunded plans, the Company pays the post-retirement benefits when due. During the three months ended September 27, 2014, the Company contributed $0.8 million to the U.K. and $0.1 million to the Switzerland plans. 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 27, | September 28, | |||||||
2014 | 2013 | |||||||
Service cost | $ | 0.2 | $ | 0.1 | ||||
Interest cost | 1 | 1.2 | ||||||
Expected return on plan assets | -0.4 | -0.4 | ||||||
Recognized net actuarial (gains)/losses | 0.1 | - | ||||||
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 $5.1 million related to its defined benefit pension plans during fiscal 2015 to make current benefit payments and fund future obligations. As of September 27, 2014, approximately $1.8 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 28, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||
Sep. 27, 2014 | |||||||
Commitments and Contingencies | ' | ||||||
Commitments and Contingencies | ' | ||||||
Note 15. 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. If an unfavorable final outcome occurs, it is possible there could be 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 27, 2014 and June 28, 2014. | |||||||
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 27, | September 28, | ||||||
2014 | 2013 | ||||||
Balance as of beginning of period | $ | 6.3 | $ | 6.9 | |||
Provision for warranty | 1.5 | 2.3 | |||||
Utilization of reserve | -1.8 | -1.4 | |||||
Adjustments related to pre-existing warranties (including changes in estimates) | -0.1 | -1 | |||||
Balance as of end of period | $ | 5.9 | $ | 6.8 |
Operating_Segments
Operating Segments | 3 Months Ended | ||||||||||
Sep. 27, 2014 | |||||||||||
Operating Segments | ' | ||||||||||
Operating Segments | ' | ||||||||||
Note 16. 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, 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 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, Network Enablement and Service Enablement. Splitting NSE into two reportable segments provides greater clarity and transparency regarding the markets, financial performance and business models of the NE and SE businesses. NE is a hardware-centric and more mature business consisting primarily of NSE's traditional communications test instrument products. SE is a more software-centric business consisting primarily of software solutions that are embedded within the network and enterprise performance management solutions. Historical segment numbers have been recast to conform to this new reporting structure in our financial statements. | |||||||||||
The Company’s reportable segments are: | |||||||||||
(i) Network Enablement: | |||||||||||
NE provides testing solutions that access the network to perform build out and maintenance tasks. These solutions include instruments and software to design, build, turn-up, certify, troubleshoot, and optimize networks. | |||||||||||
(ii) Service Enablement: | |||||||||||
SE solutions are embedded systems that yield network, service and application performance data. These solutions—including microprobes and software—monitor, collect and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. | |||||||||||
(iii) 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, reconfigurable optical add/drop multiplexers ("ROADMs"), optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters and circulators. CCOP also provides near-infrared light source technology used in 3D sensing systems. | |||||||||||
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. | |||||||||||
(iv) 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 3D and gesture recognition 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 28, 2014. 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 27, | September 28, | ||||||||||
2014 | 2013 | ||||||||||
Net revenue: | |||||||||||
Network Enablement | $ | 132.8 | $ | 145.1 | |||||||
Service Enablement | 48.2 | 26.8 | |||||||||
Communications and Commercial Optical Products | 209.3 | 204.6 | |||||||||
Optical Security and Performance Products | 43.3 | 52.5 | |||||||||
Net revenue | $ | 433.6 | $ | 429 | |||||||
Operating income (loss): | |||||||||||
Network Enablement | $ | 20.1 | $ | 22.5 | |||||||
Service Enablement | 0.8 | -9.9 | |||||||||
Communications and Commercial Optical Products | 25.1 | 27.2 | |||||||||
Optical Security and Performance Products | 15.9 | 19.1 | |||||||||
Corporate | -22.4 | -23.5 | |||||||||
Total segment operating income | 39.5 | 35.4 | |||||||||
Unallocated amounts: | |||||||||||
Stock-based compensation | -15.7 | -15.7 | |||||||||
Amortization of intangibles | -15.1 | -14.1 | |||||||||
Loss on disposal of long-lived assets | - | -0.3 | |||||||||
Restructuring and related charges | -2.9 | 0.8 | |||||||||
Other charges related to non-recurring activities | -1.6 | 0.5 | |||||||||
Interest and other income (expense), net | 0.5 | -0.6 | |||||||||
Interest expense | -8.3 | -5.2 | |||||||||
Loss (income) before income taxes | $ | -3.6 | $ | 0.8 |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 27, 2014 | |
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 2015 is a 52-week year ending on June 27, 2015. The Company’s fiscal 2014 was a 52-week year ending on June 28, 2014. | |
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. | |
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. 27, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
Schedule of computation of basic and diluted net income (loss) per share | ' | ||||||||
The following table sets forth the computation of basic and diluted net (loss) income per share (in millions, except per share data): | |||||||||
Three Months Ended | |||||||||
September 27, | September 28, | ||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net (loss) income | $ | -9.7 | $ | 0.3 | |||||
Denominator: | |||||||||
Weighted-average number of common shares outstanding: | |||||||||
Basic | 230.8 | 235.3 | |||||||
Effect of dilutive securities from stock-based benefit plans | - | 4.3 | |||||||
Diluted | 230.8 | 239.6 | |||||||
Net (loss) income per share from: | |||||||||
Basic | $ | -0.04 | $ | 0 | |||||
Diluted | $ | -0.04 | $ | 0 | |||||
Schedule of weighted average potentially dilutive securities excluded from the computation because their effect would have been anti-dilutive | ' | ||||||||
The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive (in millions): | |||||||||
Three Months Ended | |||||||||
September 27, | September 28, | ||||||||
2014 (1) (2) | 2013 (2) | ||||||||
Stock options and employee stock purchase plan | 4 | 1.5 | |||||||
Restricted stock units | 10.4 | 0.5 | |||||||
Total potentially dilutive securities | 14.4 | 2 | |||||||
-1 | As the Company incurred a net loss in the period, 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. | ||||||||
-2 | The Company's 0.625% Senior Convertible Notes due 2033 (the "2033 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. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Schedule of components of accumulated other comprehensive income | ' | ||||||||||||
For the three months ended September 27, 2014, the changes in accumulated other comprehensive income (loss) 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 28, 2014 | $ | -2.8 | $ | 26.2 | $ | -12.3 | $ | 11.1 | |||||
Other comprehensive loss before | |||||||||||||
reclassification adjustments | -0.2 | -18.5 | ― | -18.7 | |||||||||
Amounts reclassified from Accumulated other | |||||||||||||
comprehensive income | ― | ― | 0.1 | 0.1 | |||||||||
Net current-period other comprehensive income (loss) | -0.2 | -18.5 | 0.1 | -18.6 | |||||||||
Ending balance as of September 27, 2014 | $ | -3 | $ | 7.7 | $ | -12.2 | $ | -7.5 | |||||
-1 | Amount represents the amortization of actuarial losses included as a component of Selling, general and administrative expense (“SG&A”) in the Consolidated Statements of Operations for the three months ended September 27, 2014. There was no tax impact. Refer to “Note 14. Employee Defined Benefit Plans” for more details on the computation of net periodic cost for pension plans. |
Balance_Sheet_and_Other_Detail1
Balance Sheet and Other Details (Tables) | 3 Months Ended | |||||||||||||
Sep. 27, 2014 | ||||||||||||||
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 28, | Charged to Costs | September 27, | ||||||||||||
2014 | and Expenses | Adjustments (1) | 2014 | |||||||||||
Allowance for doubtful accounts | $ | 3 | $ | 0.2 | $ | -0.1 | $ | 3.1 | ||||||
Allowance for sales returns | 0.5 | 0.1 | -0.2 | 0.4 | ||||||||||
Total accounts receivable reserves | $ | 3.5 | $ | 0.3 | $ | -0.3 | $ | 3.5 | ||||||
-1 | Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries. | |||||||||||||
Schedule of components of 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 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Finished goods | $ | 81.5 | $ | 78.4 | ||||||||||
Work in process | 39.5 | 40.1 | ||||||||||||
Raw materials | 34.2 | 34.8 | ||||||||||||
Inventories, net | $ | 155.2 | $ | 153.3 | ||||||||||
Schedule of components of Prepayments and other current assets | ' | |||||||||||||
The components of Prepayments and other current assets were as follows (in millions): | ||||||||||||||
September 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Prepayments | $ | 36.7 | $ | 33.3 | ||||||||||
Other current assets | 43.4 | 45.4 | ||||||||||||
Prepayments and other current assets | $ | 80.1 | $ | 78.7 | ||||||||||
Schedule of components of Other current liabilities | ' | |||||||||||||
The components of Other current liabilities were as follows (in millions): | ||||||||||||||
September 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Deferred compensation plan | $ | 3.9 | $ | 3.9 | ||||||||||
Warranty | 4.9 | 5.3 | ||||||||||||
Restructuring | 11.1 | 14.5 | ||||||||||||
Holdback liabilities from acquisitions | 14.8 | 22.5 | ||||||||||||
Other | 18.7 | 11.5 | ||||||||||||
Other current liabilities | $ | 53.4 | $ | 57.7 | ||||||||||
Schedule of components of Other non-current liabilities | ' | |||||||||||||
The components of Other non-current liabilities were as follows (in millions): | ||||||||||||||
September 27, | June 28, | |||||||||||||
2014 | 2014 | |||||||||||||
Pension and post-employment benefits | $ | 100.6 | $ | 107.3 | ||||||||||
Financing obligation | 31 | 31.4 | ||||||||||||
Long-term deferred revenue | 22.5 | 22.7 | ||||||||||||
Other | 53.9 | 58.1 | ||||||||||||
Other non-current liabilities | $ | 208 | $ | 219.5 |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||
Sep. 27, 2014 | |||||||||||||||
Investments and Fair Value Measurements | ' | ||||||||||||||
Schedule of available-for-sale securities | ' | ||||||||||||||
As of September 27, 2014, 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 | $ | 27.5 | $ | - | $ | - | $ | 27.5 | |||||||
U.S agencies | 87.8 | 0.1 | - | 87.9 | |||||||||||
Municipal bonds and sovereign debt instruments | 15.4 | - | - | 15.4 | |||||||||||
Asset-backed securities | 87.3 | - | -0.2 | 87.1 | |||||||||||
Corporate securities | 357.1 | 0.2 | -0.1 | 357.2 | |||||||||||
Total debt available-for-sale securities | $ | 575.1 | $ | 0.3 | $ | -0.3 | $ | 575.1 | |||||||
As of June 28, 2014, 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 | $ | 36.8 | $ | - | $ | - | $ | 36.8 | |||||||
U.S. agencies | 70 | - | - | 70 | |||||||||||
Municipal bonds and sovereign debt instruments | 16.8 | - | - | 16.8 | |||||||||||
Asset-backed securities | 94.7 | 0.1 | -0.2 | 94.6 | |||||||||||
Corporate securities | 370.5 | 0.2 | - | 370.7 | |||||||||||
Total debt available-for-sale securities | $ | 588.8 | $ | 0.3 | $ | -0.2 | $ | 588.9 | |||||||
Schedule of contractual maturities of available-for-sale securities | ' | ||||||||||||||
As of September 27, 2014, 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 | $ | 412 | $ | 412 | |||||||||||
Amounts maturing in 1 - 5 years | 162.1 | 162.3 | |||||||||||||
Amounts maturing in more than 5 years | 1 | 0.8 | |||||||||||||
Total debt available-for-sale securities | $ | 575.1 | $ | 575.1 | |||||||||||
Schedule of assets measured at fair value | ' | ||||||||||||||
Assets measured at fair value as of September 27, 2014 are summarized below (in millions): | |||||||||||||||
Fair value measurement as of September 27, 2014 | |||||||||||||||
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 | $ | 27.5 | $ | 27.5 | $ | ― | |||||||||
U.S. agencies | 87.9 | ― | 87.9 | ||||||||||||
Municipal bonds and sovereign debt instruments | 15.4 | ― | 15.4 | ||||||||||||
Asset-backed securities | 87.1 | ― | 87.1 | ||||||||||||
Corporate securities | 357.2 | 357.2 | |||||||||||||
Total debt available-for-sale securities | 575.1 | 27.5 | 547.6 | ||||||||||||
Money market funds | 197 | 197 | ― | ||||||||||||
Trading securities | 3.9 | 3.9 | ― | ||||||||||||
Total assets (1) | $ | 776 | $ | 228.4 | $ | 547.6 | |||||||||
-1 | $202.0 million in cash and cash equivalents, $537.7 million in short-term investments, $31.7 million in restricted cash, and $4.6 million in other non-current assets on the Company's Consolidated Balance Sheet. |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Schedule of changes in goodwill | ' | ||||||||||||||||
The following table presents the changes in goodwill allocated to the reportable segments (in millions): | |||||||||||||||||
Communications | Optical Security | ||||||||||||||||
Network | Service | and Commercial | and Performance | ||||||||||||||
Enablement (1) | Enablement (1) | Optical Products (2) | Products | Total | |||||||||||||
Balance as of June 28, 2014 | $ | 158 | $ | 94.8 | $ | 5.9 | $ | 8.3 | $ | 267 | |||||||
Currency translation and other adjustments | -1.6 | -0.9 | -0.3 | ― | -2.8 | ||||||||||||
Balance as of September 27, 2014 | $ | 156.4 | $ | 93.9 | $ | 5.6 | $ | 8.3 | $ | 264.2 | |||||||
-1 | In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, NE and SE. The goodwill of NSE was allocated between the two new segments based on their relative fair value as of June 29, 2014, the first day of fiscal 2015. The Company determined that based on its cash flow structure, organizational structure and the financial information provided to and reviewed by Management, NE and SE also represented new reporting units for fiscal 2015. Refer to “Note. 16. Operating Segments” for more information. | ||||||||||||||||
-2 | The goodwill balance as of September 27, 2014 for the CCOP segment relates to the acquisition of Time-Bandwidth and has been allocated to the Lasers reporting unit. |
Acquired_Developed_Technology_1
Acquired Developed Technology and Other Intangibles (Tables) | 3 Months Ended | |||||||||||||
Sep. 27, 2014 | ||||||||||||||
Acquired Developed Technology and Other Intangibles | ' | |||||||||||||
Schedule of acquired developed technology and other intangibles | ' | |||||||||||||
The following tables present details of the Company’s acquired developed technology, customer relationships and other intangibles (in millions): | ||||||||||||||
Gross | ||||||||||||||
Carrying | Accumulated | |||||||||||||
As of September 27, 2014 | Amount | Amortization | Net | |||||||||||
Acquired developed technology | $ | 543.2 | $ | -447.2 | $ | 96 | ||||||||
Customer relationships | 201.4 | -143.7 | 57.7 | |||||||||||
Other | 23.1 | -21.4 | 1.7 | |||||||||||
Total intangibles subject to amortization | 767.7 | -612.3 | 155.4 | |||||||||||
In-process research and development intangibles | 5.4 | - | 5.4 | |||||||||||
Total intangibles | $ | 773.1 | $ | -612.3 | $ | 160.8 | ||||||||
Gross | ||||||||||||||
Carrying | Accumulated | |||||||||||||
As of June 28, 2014 | Amount | Amortization | Net | |||||||||||
Acquired developed technology | $ | 548.8 | $ | -443.1 | $ | 105.7 | ||||||||
Customer relationships | 205.2 | -142.3 | 62.9 | |||||||||||
Other | 24.2 | -22.1 | 2.1 | |||||||||||
Total intangibles subject to amortization | 778.2 | -607.5 | 170.7 | |||||||||||
In-process research and development intangibles | 7.1 | - | 7.1 | |||||||||||
Total intangibles | $ | 785.3 | $ | -607.5 | $ | 177.8 | ||||||||
Schedule of estimated future amortization | ' | |||||||||||||
Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of September 27, 2014, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions): | ||||||||||||||
Fiscal Years | ||||||||||||||
Remainder of 2015 | $ | 44.4 | ||||||||||||
2016 | 38.7 | |||||||||||||
2017 | 35.4 | |||||||||||||
2018 | 22.7 | |||||||||||||
2019 | 10.8 | |||||||||||||
Thereafter | 3.4 | |||||||||||||
Total amortization | $ | 155.4 |
Debts_and_Letters_of_Credit_Ta
Debts and Letters of Credit (Tables) | 3 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Debts and Letters of Credit | ' | ||||||||
Schedule of details of the Company's debt | ' | ||||||||
As of September 27, 2014 and June 28, 2014 the Company’s Long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component of the 0.625% Senior Convertible Notes as discussed below. The following table presents the details of the Company’s debt (in millions): | |||||||||
September 27, | June 28, | ||||||||
2014 | 2014 | ||||||||
Principal amount of 0.625% Senior Convertible Notes | $ | 650 | $ | 650 | |||||
Unamortized discount of liability component | -107.5 | -113.7 | |||||||
Carrying amount of liability component | $ | 542.5 | $ | 536.3 | |||||
Carrying amount of equity component (1) | $ | 134.4 | $ | 134.4 | |||||
-1 | Included in Additional paid-in-capital on the Consolidated Balance Sheets. | ||||||||
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 27, | September 28, | ||||||||
2014 | 2013 | ||||||||
Effective interest rate | 5.4 | % | 5.4 | % | |||||
Interest expense-contractual interest | $ | 1 | $ | 0.4 | |||||
Accretion of debt discount | 6.2 | 2.6 |
Restructuring_and_Related_Char1
Restructuring and Related Charges (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Restructuring and Related Charges | ' | ||||||||||||||||
Schedule of various restructuring plans | ' | ||||||||||||||||
The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three months ended September 27, 2014, were as follows (in millions): | |||||||||||||||||
Three | |||||||||||||||||
Months Ended | Non-cash | ||||||||||||||||
Balance | September 27, | Settlements | Balance | ||||||||||||||
June 28, | 2014 | Cash | and Other | September 27, | |||||||||||||
2014 | Charges | Settlements | Adjustments | 2014 | |||||||||||||
Fiscal 2015 Plan | |||||||||||||||||
CCOP Robbinsville Closure Plan | $ | - | $ | 1.5 | $ | -0.2 | $ | - | $ | 1.3 | |||||||
(Workforce Reduction) | |||||||||||||||||
Fiscal 2014 Plans | |||||||||||||||||
NE Realignment Plan | |||||||||||||||||
(Workforce Reduction) | 4.6 | 0.3 | -3.2 | - | 1.7 | ||||||||||||
CCOP Serangoon Closure Plan | |||||||||||||||||
(Workforce Reduction) | 1.7 | - | -0.2 | - | 1.5 | ||||||||||||
Shared Services Restructuring Plan | |||||||||||||||||
(Workforce Reduction) | 1.8 | - | -0.5 | - | 1.3 | ||||||||||||
NE Product Strategy Restructuring Plan | |||||||||||||||||
(Workforce Reduction) | 4.4 | - | -0.6 | -0.2 | 3.6 | ||||||||||||
NE Lease Restructuring Plan (first floor) | 6.9 | 0.3 | -0.8 | - | 6.4 | ||||||||||||
Central Finance and IT Restructuring Plan | |||||||||||||||||
(Workforce Reduction) | 1.5 | - | - | -0.1 | 1.4 | ||||||||||||
Fiscal 2013 Plans | |||||||||||||||||
NE Lease Restructuring Plan | 2.1 | -0.1 | -0.2 | - | 1.8 | ||||||||||||
CCOP Outsourcing Plan | |||||||||||||||||
(Workforce Reduction) | 0.5 | - | -0.1 | - | 0.4 | ||||||||||||
Other plans | 0.2 | 0.4 | -0.6 | - | - | ||||||||||||
Plans Prior to Fiscal 2013 | 2.5 | 0.5 | -0.8 | -0.2 | 2 | ||||||||||||
Total | $ | 26.2 | $ | 2.9 | $ | -7.2 | $ | -0.5 | $ | 21.4 | |||||||
Ottawa Lease Exit Costs | $ | 3.1 | $ | - | $ | -0.2 | $ | -0.1 | $ | 2.8 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||
Sep. 27, 2014 | |||||||
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 27, 2014 and September 28, 2013 was as follows (in millions): | |||||||
Three Months Ended | |||||||
September 27, | September 28, | ||||||
2014 | 2013 | ||||||
Cost of sales | $ | 2.4 | $ | 2.4 | |||
Research and development | 3.9 | 3.7 | |||||
Selling, general and administrative | 9.4 | 9.6 | |||||
$ | 15.7 | $ | 15.7 | ||||
Schedule of valuation assumptions for MSU using Monte Carlo simulation | ' | ||||||
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 27, | September 28, | ||||||
2014 | 2013 | ||||||
Volatility of common stock | 40.8 | % | 53.9 | % | |||
Average volatility of peer companies | 53.4 | % | 58.6 | % | |||
Average correlation coefficient of peer companies | 0.2156 | 0.292 | |||||
Risk-free interest rate | 0.6 | % | 0.8 | % |
Employee_Defined_Benefit_Plans1
Employee Defined Benefit Plans (Tables) | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
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 27, | September 28, | |||||||
2014 | 2013 | |||||||
Service cost | $ | 0.2 | $ | 0.1 | ||||
Interest cost | 1 | 1.2 | ||||||
Expected return on plan assets | -0.4 | -0.4 | ||||||
Recognized net actuarial (gains)/losses | 0.1 | - | ||||||
Net periodic benefit cost | $ | 0.9 | $ | 0.9 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||
Sep. 27, 2014 | |||||||
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 27, | September 28, | ||||||
2014 | 2013 | ||||||
Balance as of beginning of period | $ | 6.3 | $ | 6.9 | |||
Provision for warranty | 1.5 | 2.3 | |||||
Utilization of reserve | -1.8 | -1.4 | |||||
Adjustments related to pre-existing warranties (including changes in estimates) | -0.1 | -1 | |||||
Balance as of end of period | $ | 5.9 | $ | 6.8 |
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | ||||||||||
Sep. 27, 2014 | |||||||||||
Operating Segments | ' | ||||||||||
Schedule of information on reportable segments | ' | ||||||||||
Information on reportable segments is as follows (in millions): | |||||||||||
Three Months Ended | |||||||||||
September 27, | September 28, | ||||||||||
2014 | 2013 | ||||||||||
Net revenue: | |||||||||||
Network Enablement | $ | 132.8 | $ | 145.1 | |||||||
Service Enablement | 48.2 | 26.8 | |||||||||
Communications and Commercial Optical Products | 209.3 | 204.6 | |||||||||
Optical Security and Performance Products | 43.3 | 52.5 | |||||||||
Net revenue | $ | 433.6 | $ | 429 | |||||||
Operating income (loss): | |||||||||||
Network Enablement | $ | 20.1 | $ | 22.5 | |||||||
Service Enablement | 0.8 | -9.9 | |||||||||
Communications and Commercial Optical Products | 25.1 | 27.2 | |||||||||
Optical Security and Performance Products | 15.9 | 19.1 | |||||||||
Corporate | -22.4 | -23.5 | |||||||||
Total segment operating income | 39.5 | 35.4 | |||||||||
Unallocated amounts: | |||||||||||
Stock-based compensation | -15.7 | -15.7 | |||||||||
Amortization of intangibles | -15.1 | -14.1 | |||||||||
Loss on disposal of long-lived assets | - | -0.3 | |||||||||
Restructuring and related charges | -2.9 | 0.8 | |||||||||
Other charges related to non-recurring activities | -1.6 | 0.5 | |||||||||
Interest and other income (expense), net | 0.5 | -0.6 | |||||||||
Interest expense | -8.3 | -5.2 | |||||||||
Loss (income) before income taxes | $ | -3.6 | $ | 0.8 |
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 27, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Sep. 10, 2014 | |
Item | Item | |||
Fiscal years, change in reportable segments and spinoff plans annoucement | ' | ' | ' | ' |
Number of weeks in fiscal year | ' | '364 days | '364 days | ' |
New reportable segments | 2 | ' | ' | ' |
Number of new public entities as a result of the announed spinoff plan. | ' | ' | ' | 2 |
Minimum | ' | ' | ' | ' |
Fiscal years, change in reportable segments and spinoff plans annoucement | ' | ' | ' | ' |
Number of weeks in fiscal year | ' | '364 days | ' | ' |
Maximum | ' | ' | ' | ' |
Fiscal years, change in reportable segments and spinoff plans annoucement | ' | ' | ' | ' |
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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Jun. 28, 2014 | Sep. 28, 2013 | Aug. 21, 2013 | Aug. 15, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | ||||||
0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | Employee stock options and ESPP | Employee stock options and ESPP | Restricted Stock Units | Restricted Stock Units | |||||||||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net (loss) income | ($9.70) | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Basic | 230.8 | 235.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Effect of dilutive securities from stock-based benefit plans | ' | 4.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Diluted | 230.8 | 239.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Basic net (loss) income per share from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Basic | ($0.04) | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Diluted net (loss) income per share from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Diluted | ($0.04) | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Total potentially dilutive securities | 14.4 | [1],[2] | 2 | [1] | ' | ' | ' | ' | ' | 4 | [1],[2] | 1.5 | [1] | 10.4 | [1],[2] | 0.5 | [1] |
Convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Interest rate on senior convertible notes (as a percent) | ' | ' | 0.63% | 0.63% | 0.63% | 0.63% | 0.63% | ' | ' | ' | ' | ||||||
Conversion price of debt (in dollars per share) | ' | ' | $18.83 | ' | $18.83 | $18.83 | ' | ' | ' | ' | ' | ||||||
[1] | The Company's 0.625% Senior Convertible Notes due 2033 (the "2033 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] | As the Company incurred a net loss in the period, 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. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
Sep. 27, 2014 | ||
Changes in accumulated other comprehensive income (loss) by component | ' | |
Beginning balance as of June 28, 2014 | $11,100,000 | |
Other comprehensive income before reclassification adjustments | -18,700,000 | |
Amounts reclassified from Accumulated other comprehensive income | 100,000 | |
Net current-period other comprehensive (loss) income | -18,600,000 | |
Ending balance as of September 27, 2014 | -7,500,000 | |
Tax impact of amortization of actuarial losses | 0 | |
Unrealized losses on available-for-sale investments | ' | |
Changes in accumulated other comprehensive income (loss) by component | ' | |
Beginning balance as of June 28, 2014 | -2,800,000 | |
Other comprehensive income before reclassification adjustments | -200,000 | |
Amounts reclassified from Accumulated other comprehensive income | 0 | |
Net current-period other comprehensive (loss) income | -200,000 | |
Ending balance as of September 27, 2014 | -3,000,000 | |
Foreign currency translation adjustments | ' | |
Changes in accumulated other comprehensive income (loss) by component | ' | |
Beginning balance as of June 28, 2014 | 26,200,000 | |
Other comprehensive income before reclassification adjustments | -18,500,000 | |
Amounts reclassified from Accumulated other comprehensive income | 0 | |
Net current-period other comprehensive (loss) income | -18,500,000 | |
Ending balance as of September 27, 2014 | 7,700,000 | |
Defined benefit obligation, net of tax | ' | |
Changes in accumulated other comprehensive income (loss) by component | ' | |
Beginning balance as of June 28, 2014 | -12,300,000 | [1] |
Other comprehensive income before reclassification adjustments | 0 | [1] |
Amounts reclassified from Accumulated other comprehensive income | 100,000 | [1] |
Net current-period other comprehensive (loss) income | 100,000 | [1] |
Ending balance as of September 27, 2014 | ($12,200,000) | [1] |
[1] | Amount represents the amortization of actuarial losses included as a component of Selling, general and administrative expense (bSG&Ab) in the Consolidated Statements of Operations for the three months ended September 27, 2014. There was no tax impact. Refer to bNote 14. Employee Defined Benefit Plansb for more details on the computation of net periodic cost for pension plans. |
Mergers_and_Acquisitions_Detai
Mergers and Acquisitions (Details) (Network Instuments, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jan. 06, 2014 | Sep. 27, 2014 |
Network Instuments | ' | ' |
Acquisitions | ' | ' |
Purchase price paid in cash | $208.50 | ' |
Working capital adjustment and holdback payment | 20 | ' |
Purchase price allocation to assets acquired | ' | ' |
Total purchase price | 208.5 | ' |
Additional business acquisition information | ' | ' |
Holdback payments, minus any deductions for actual or pending claims to be paid in second tranche | 10 | ' |
Holdback payment | ' | $9.80 |
Balance_Sheet_and_Other_Detail2
Balance Sheet and Other Details (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Jun. 28, 2014 | |
Activities and balances for allowance for doubtful accounts and allowance for sales returns | ' | ' | |
Balance at Beginning of Period | $3.50 | ' | |
Charged to Costs and Expenses | 0.3 | ' | |
Adjustments | 0.3 | [1] | ' |
Balance at End of Period | 3.5 | ' | |
Inventories | ' | ' | |
Finished goods | 81.5 | 78.4 | |
Work in process | 39.5 | 40.1 | |
Raw materials | 34.2 | 34.8 | |
Inventories, net | 155.2 | 153.3 | |
Allowance for doubtful accounts | ' | ' | |
Activities and balances for allowance for doubtful accounts and allowance for sales returns | ' | ' | |
Balance at Beginning of Period | 3 | ' | |
Charged to Costs and Expenses | 0.2 | ' | |
Adjustments | 0.1 | [1] | ' |
Balance at End of Period | 3.1 | ' | |
Allowance for sales returns | ' | ' | |
Activities and balances for allowance for doubtful accounts and allowance for sales returns | ' | ' | |
Balance at Beginning of Period | 0.5 | ' | |
Charged to Costs and Expenses | 0.1 | ' | |
Adjustments | 0.2 | [1] | ' |
Balance at End of Period | $0.40 | ' | |
[1] | Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries. |
Balance_Sheet_and_Other_Detail3
Balance Sheet and Other Details (Details 2) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Prepayments and Other Current Assets | ' | ' |
Prepayments | $36.70 | $33.30 |
Other current assets | 43.4 | 45.4 |
Prepayments and other current assets | 80.1 | 78.7 |
Other Current Liabilities | ' | ' |
Deferred compensation plan | 3.9 | 3.9 |
Warranty | 4.9 | 5.3 |
Restructuring | 11.1 | 14.5 |
Holdback liabilities from acquisitions | 14.8 | 22.5 |
Other | 18.7 | 11.5 |
Other current liabilities | 53.4 | 57.7 |
Other Non-Current Liabilities | ' | ' |
Pension and post-employment benefits | 100.6 | 107.3 |
Financing obligation | 31 | 31.4 |
Long-term deferred revenue | 22.5 | 22.7 |
Other | 53.9 | 58.1 |
Other non-current liabilities | $208 | $219.50 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Jun. 28, 2014 |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | $575.10 | ' | $588.80 |
Gross Unrealized Gains | 0.3 | ' | 0.3 |
Gross Unrealized Losses | -0.3 | ' | -0.2 |
Available for Sale Investments at Fair Value | 575.1 | ' | 588.9 |
Other-than-temporary impairment loss | 0 | 0 | ' |
Contractual maturities of debt securities classified as available-for-sale securities, Amortized cost | ' | ' | ' |
Amortized cost of amounts maturing in less than 1 year | 412 | ' | ' |
Amortized cost of amounts maturing in 1-5 years | 162.1 | ' | ' |
Amortized cost of amounts maturing in more than 5 years | 1 | ' | ' |
Total amortized cost of debt available-for-sale securities | 575.1 | ' | ' |
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 | 412 | ' | ' |
Estimated fair value amounts maturing in 1 -5 years | 162.3 | ' | ' |
Estimated fair value amounts maturing in more than 5 years | 0.8 | ' | ' |
Total estimated fair value of debt available-for-sale securities | 575.1 | ' | ' |
Term of maturities of securities classified as current assets included in short-term investments | '12 months | ' | ' |
Cash equivalents | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Available for Sale Investments at Fair Value | 40.5 | ' | 39.8 |
Short-term investments | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Available for Sale Investments at Fair Value | 533.8 | ' | 548.3 |
Other non-current assets | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Available for Sale Investments at Fair Value | 0.8 | ' | 0.8 |
Asset-backed securities | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 87.3 | ' | 94.7 |
Gross Unrealized Gains | ' | ' | 0.1 |
Gross Unrealized Losses | -0.2 | ' | -0.2 |
Available for Sale Investments at Fair Value | 87.1 | ' | 94.6 |
U.S. treasuries | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 27.5 | ' | 36.8 |
Available for Sale Investments at Fair Value | 27.5 | ' | 36.8 |
U.S. Agencies | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 87.8 | ' | 70 |
Gross Unrealized Gains | 0.1 | ' | ' |
Available for Sale Investments at Fair Value | 87.9 | ' | 70 |
Municipal bonds and sovereign debt instruments | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 15.4 | ' | 16.8 |
Available for Sale Investments at Fair Value | 15.4 | ' | 16.8 |
Corporate securities | ' | ' | ' |
Available-For-Sale Investments | ' | ' | ' |
Amortized Cost/ Carrying Cost | 357.1 | ' | 370.5 |
Gross Unrealized Gains | 0.2 | ' | 0.2 |
Gross Unrealized Losses | -0.1 | ' | ' |
Available for Sale Investments at Fair Value | $357.20 | ' | $370.70 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements (Details 2) (Short-term investments, Trading securities, USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | $3.90 | $3.90 |
Debt securities | ' | ' |
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | 0.6 | 0.4 |
Money market instruments and funds | ' | ' |
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | 0.5 | 0.7 |
Marketable equity investments | ' | ' |
Trading securities related to deferred compensation plan | ' | ' |
Deferred compensation plan assets | $2.80 | $2.80 |
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. 27, 2014 | Jun. 28, 2014 | |
Maximum | ' | ' | |
Foreign Currency Forward Contracts | ' | ' | |
Foreign currency forward contracts, expiration period | '120 days | '120 days | |
Recurring basis | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 575.1 | ' | |
Money market funds | 197 | ' | |
Trading securities | 3.9 | ' | |
Total assets | 776 | [1] | ' |
Recurring basis | Cash and cash equivalents | ' | ' | |
Fair Value Measurements | ' | ' | |
Total assets | 202 | [1] | ' |
Recurring basis | Short-term investments | ' | ' | |
Fair Value Measurements | ' | ' | |
Total assets | 537.7 | [1] | ' |
Recurring basis | Restricted cash | ' | ' | |
Fair Value Measurements | ' | ' | |
Total assets | 31.7 | [1] | ' |
Recurring basis | Other non-current assets | ' | ' | |
Fair Value Measurements | ' | ' | |
Total assets | 4.6 | [1] | ' |
Recurring basis | U.S. treasuries | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 27.5 | ' | |
Recurring basis | U.S. agencies | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 87.9 | ' | |
Recurring basis | Municipal bonds and sovereign debt instruments | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 15.4 | ' | |
Recurring basis | Asset-backed securities | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 87.1 | ' | |
Recurring basis | Corporate securities | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 357.2 | ' | |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 27.5 | ' | |
Money market funds | 197 | ' | |
Trading securities | 3.9 | ' | |
Total assets | 228.4 | [1] | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 27.5 | ' | |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 547.6 | ' | |
Total assets | 547.6 | [1] | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. agencies | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 87.9 | ' | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bonds and sovereign debt instruments | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 15.4 | ' | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 87.1 | ' | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ' | ' | |
Fair Value Measurements | ' | ' | |
Total debt available-for-sale securities | 357.2 | ' | |
[1] | $202.0 million in cash and cash equivalents, $537.7 million in short-term investments, $31.7 million in restricted cash, and $4.6 million in other non-current assets on the Company's Consolidated Balance Sheet. |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Jun. 28, 2014 | |
Item | |||
Changes in goodwill | ' | ' | |
Balance at the beginning of the period | $267 | ' | |
Currency translation and other adjustments | -2.8 | ' | |
Balance at the end of the period | 264.2 | 267 | |
Number of reporting units | 2 | ' | |
Impairment of Goodwill | ' | ' | |
Impairment of goodwill | 0 | 0 | |
Network Enablement | ' | ' | |
Changes in goodwill | ' | ' | |
Balance at the beginning of the period | 158 | [1] | ' |
Currency translation and other adjustments | -1.6 | [1] | ' |
Balance at the end of the period | 156.4 | [1] | ' |
Service Enablement | ' | ' | |
Changes in goodwill | ' | ' | |
Balance at the beginning of the period | 94.8 | [1] | ' |
Currency translation and other adjustments | -0.9 | [1] | ' |
Balance at the end of the period | 93.9 | [1] | ' |
Optical Security and Performance Products | ' | ' | |
Changes in goodwill | ' | ' | |
Balance at the beginning of the period | 8.3 | ' | |
Currency translation and other adjustments | 0 | ' | |
Balance at the end of the period | 8.3 | ' | |
Communications and Commercial Optical Products | ' | ' | |
Changes in goodwill | ' | ' | |
Balance at the beginning of the period | 5.9 | [2] | ' |
Currency translation and other adjustments | -0.3 | [2] | ' |
Balance at the end of the period | $5.60 | [2] | ' |
[1] | In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, NE and SE. The goodwill of NSE was allocated between the two new segments based on their relative fair value as of June 29, 2014, the first day of fiscal 2015. The Company determined that based on its cash flow structure, organizational structure and the financial information provided to and reviewed by Management, NE and SE also represented new reporting units for fiscal 2015. Refer to bNote. 16. Operating Segmentsb for more information. | ||
[2] | The goodwill balance as of September 27, 2014 for the CCOP segment relates to the acquisition of Time-Bandwidth and has been allocated to the Lasers reporting unit. |
Acquired_Developed_Technology_2
Acquired Developed Technology and Other Intangibles (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Jun. 28, 2014 |
Acquired developed technology and other intangibles | ' | ' | ' |
Gross carrying amount of finite lived intangibles | $767.70 | ' | $778.20 |
Accumulated Amortization | -612.3 | ' | -607.5 |
Net carrying amount of finite lived intangibles | 155.4 | ' | 170.7 |
Net Carrying amount of in-process research and development intangibles | 5.4 | ' | 7.1 |
Gross Carrying Amount | 773.1 | ' | 785.3 |
Net carrying amount of intangibles | 160.8 | ' | 177.8 |
Amortization expenses | 15.1 | 14.1 | ' |
Estimated future amortization expense | ' | ' | ' |
Remainder of 2015 | 44.4 | ' | ' |
2016 | 38.7 | ' | ' |
2017 | 35.4 | ' | ' |
2018 | 22.7 | ' | ' |
2019 | 10.8 | ' | ' |
Thereafter | 3.4 | ' | ' |
Net carrying amount of intangibles | 155.4 | ' | ' |
Acquired developed technology | ' | ' | ' |
Acquired developed technology and other intangibles | ' | ' | ' |
Gross carrying amount of finite lived intangibles | 543.2 | ' | 548.8 |
Accumulated Amortization | -447.2 | ' | -443.1 |
Net carrying amount of finite lived intangibles | 96 | ' | 105.7 |
Other | ' | ' | ' |
Acquired developed technology and other intangibles | ' | ' | ' |
Gross carrying amount of finite lived intangibles | 23.1 | ' | 24.2 |
Accumulated Amortization | -21.4 | ' | -22.1 |
Net carrying amount of finite lived intangibles | 1.7 | ' | 2.1 |
Customer relationships | ' | ' | ' |
Acquired developed technology and other intangibles | ' | ' | ' |
Gross carrying amount of finite lived intangibles | 201.4 | ' | 205.2 |
Accumulated Amortization | -143.7 | ' | -142.3 |
Net carrying amount of finite lived intangibles | 57.7 | ' | 62.9 |
Completed in-process research and development | ' | ' | ' |
Acquired developed technology and other intangibles | ' | ' | ' |
Completion of in-process research and development project | $1.70 | ' | ' |
Useful life of intangible assets | '52 months | ' | ' |
Debts_and_Letters_of_Credit_De
Debts and Letters of Credit (Details) (USD $) | Sep. 27, 2014 | Aug. 21, 2013 | Aug. 21, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Jun. 28, 2014 | Aug. 21, 2013 | Aug. 15, 2013 | Sep. 27, 2014 |
In Millions, except Per Share data, unless otherwise specified | Letter | Revolving Credit Facility | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | 0.625% Senior Convertible Notes | |
Other non-current assets | |||||||||
Debt details | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price of convertible debt (in dollars per share) | ' | ' | ' | $18.83 | $18.83 | ' | $18.83 | ' | ' |
Amount outstanding | ' | ' | ' | $650 | ' | $650 | ' | ' | ' |
Revolving credit facility terminated | ' | ' | 250 | ' | ' | ' | ' | ' | ' |
Outstanding balance | 35.5 | 0 | ' | ' | ' | ' | ' | ' | ' |
Details of the Company's debt: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of 0.625% Senior Convertible Notes | ' | ' | ' | 650 | ' | 650 | ' | ' | ' |
Unamortized discount of liability component | ' | ' | ' | -107.5 | ' | -113.7 | ' | ' | ' |
Carrying amount of liability component | ' | ' | ' | 542.5 | ' | 536.3 | 515.6 | ' | ' |
Carrying amount of equity component | ' | ' | ' | 134.4 | ' | 134.4 | 134.4 | ' | ' |
Interest rate on senior convertible notes (as a percent) | ' | ' | ' | 0.63% | 0.63% | 0.63% | 0.63% | 0.63% | ' |
Aggregate principal amount of convertible debt | ' | ' | ' | ' | ' | ' | 650 | ' | ' |
Proceeds from issuance of convertible notes after issuance costs | ' | ' | ' | ' | ' | ' | 636.3 | ' | ' |
Discount rate used to calculate the carrying value of the liability component of the convertible debt (as a percent) | ' | ' | ' | ' | ' | ' | 5.40% | ' | ' |
Variable rate basis on which discount rate is based | ' | ' | ' | '5-year swap | ' | ' | ' | ' | ' |
Effective interest rate (as a percent) | ' | ' | ' | 5.40% | 5.40% | ' | ' | ' | ' |
Remaining term of convertible notes | ' | ' | ' | '3 years 10 months 24 days | ' | ' | ' | ' | ' |
Deferred finance costs | ' | ' | ' | ' | ' | ' | 13.7 | ' | ' |
Liability component, debt issuance cost | ' | ' | ' | ' | ' | ' | 10.9 | ' | ' |
Equity component, debt issuance cost | ' | ' | ' | ' | ' | ' | 2.8 | ' | ' |
Unamortized portion of debt issuance cost | ' | ' | 1.3 | ' | ' | ' | ' | ' | 8.7 |
Fair market value of convertible debt | ' | ' | ' | 657.1 | ' | 653 | ' | ' | ' |
Effective interest rate and interest expense for the contractual interest and the accretion of debt discount: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate (as a percent) | ' | ' | ' | 5.40% | 5.40% | ' | ' | ' | ' |
Interest expense-contractual interest | ' | ' | ' | 1 | 0.4 | ' | ' | ' | ' |
Accretion of debt discount | ' | ' | ' | $6.20 | $2.60 | ' | ' | ' | ' |
Outstanding Letters of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of standby letters of credit | 13 | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_and_Related_Char2
Restructuring and Related Charges (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Jun. 28, 2014 | Sep. 27, 2014 | Dec. 28, 2013 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Mar. 30, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 |
CCOP Robbinsville Closure Plan (Workforce Reduction) | Central Finance and IT Restructuring Plan (Workforce Reduction) | NE Realignment Plan | CCOP Serangoon Closure Plan | Shared Services Restructuring Plan | NE Product Strategy Restructuring Plan | CCOP Outsourcing Plan (Workforce Reduction) | Other plans | Plans Prior to Fiscal 2013 | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Workforce Reduction | Ottawa Lease Exit Costs | Lease Costs | Lease Costs | ||||
Employee | Hologram Business | Hologram Business | Hologram Business | Hologram Business | Hologram Business | Hologram Business | CCOP Robbinsville Closure Plan (Workforce Reduction) | Central Finance and IT Restructuring Plan (Workforce Reduction) | NE Realignment Plan | CCOP Serangoon Closure Plan | Shared Services Restructuring Plan | NE Product Strategy Restructuring Plan | CCOP Outsourcing Plan (Workforce Reduction) | NE Germany Restructuring Plan | NE Lease Restructuring Plan (first floor) | NE Lease Restructuring Plan (Lease Costs) | |||||||
Employee | Employee | Employee | Employee | Employee | Employee | Hologram Business | |||||||||||||||||
Restructuring and Related Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees expected to be reduced | ' | ' | ' | 30 | 22 | 108 | 42 | 46 | 62 | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual obligations under the operating lease, net of sublease income, fair value | $2.80 | ' | $3.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of various restructuring plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual balance at the beginning of the period | 26.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 2.5 | 0 | 1.5 | 4.6 | 1.7 | 1.8 | 4.4 | 0.5 | ' | 3.1 | 6.9 | 2.1 |
Restructuring expenses | 2.9 | -0.8 | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | 0.5 | 1.5 | 0 | 0.3 | 0 | 0 | 0 | 0 | 0.8 | 0 | 0.3 | -0.1 |
Cash Settlements | -7.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.6 | -0.8 | -0.2 | 0 | -3.2 | -0.2 | -0.5 | -0.6 | -0.1 | ' | -0.2 | -0.8 | -0.2 |
Non-cash settlements and other adjustments | -0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -0.2 | 0 | -0.1 | 0 | 0 | 0 | -0.2 | 0 | ' | -0.1 | 0 | 0 |
Accrual balance at the end of the period | $21.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $2 | $1.30 | $1.40 | $1.70 | $1.50 | $1.30 | $3.60 | $0.40 | ' | $2.80 | $6.40 | $1.80 |
Restructuring_and_Related_Char3
Restructuring and Related Charges (Details 2) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Restructuring accrual | ' | ' |
Non-current | $10.30 | $11.70 |
Other lease exit costs | ' | ' |
Non-current | $1.80 | $2 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Components of the Company's income tax (benefit) expense | ' | ' |
Total income tax expense | $6.10 | $0.50 |
Income tax benefit intraperiod tax allocation related to other comprehensive income | ' | $4.20 |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Millions, unless otherwise specified | ||
Income Tax | ' | ' |
Unrecognized tax benefits | $59.50 | $60.30 |
Accrued interest and penalties related to unrecognized tax benefits | 24.4 | ' |
Unrecognized tax benefits that may be recognized during the next twelve months | $23.20 | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Stock-based compensation cost (in dollars) | $15.70 | $15.70 |
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 | 2.4 |
Research and development | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Stock-based compensation cost (in dollars) | 3.9 | 3.7 |
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) | 9.4 | 9.6 |
Full Value Awards - Total | ' | ' |
Impact on the entity's results of operations of recording stock-based compensation by function | ' | ' |
Unrecognized stock-based compensation | 106.5 | ' |
Estimated amortization period | '2 years 4 months 26 days | ' |
Withholding taxes liability paid | 8.3 | 11.2 |
Exercise price (in dollars per share) | $0 | ' |
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) | 4.8 | 4.4 |
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) | 4.1 | 3.8 |
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 | ' | ' |
Granted (in shares) | 0.7 | 0.6 |
Aggregate grant-date fair value (in dollars) | $8.50 | $9.20 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (MSUs, Monte Carlo simulation) | 3 Months Ended | |
Sep. 27, 2014 | Sep. 28, 2013 | |
MSUs | Monte Carlo simulation | ' | ' |
Valuation Assumptions | ' | ' |
Volatility (as a percent) | 40.80% | 53.90% |
Average volatility of peer companies (as a percent) | 53.40% | 58.60% |
Average correlation coefficient of peer companies | 0.2156 | 0.292 |
Risk-free interest rate (as a percent) | 0.60% | 0.80% |
Employee_Defined_Benefit_Plans2
Employee Defined Benefit Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Jun. 27, 2015 |
Components of the net periodic cost for the pension and benefits plans | ' | ' | ' |
Service cost | $0.20 | $0.10 | ' |
Interest cost | 1 | 1.2 | ' |
Expected return on plan assets | -0.4 | -0.4 | ' |
Recognized net actuarial (gains)/losses | 0.1 | 0 | ' |
Net periodic benefit cost | 0.9 | 0.9 | ' |
Defined benefit plan contribution during fiscal year | ' | ' | 5.1 |
Pension Benefit Plans | ' | ' | ' |
Change in plan assets: | ' | ' | ' |
Contribution incurred | 1.8 | ' | ' |
UK pension plan | ' | ' | ' |
Change in plan assets: | ' | ' | ' |
Employer contributions | 0.8 | ' | ' |
Switzerland pension plan | ' | ' | ' |
Change in plan assets: | ' | ' | ' |
Employer contributions | $0.10 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Changes in warranty reserve | ' | ' |
Balance as of beginning of period | $6.30 | $6.90 |
Provision for warranty | 1.5 | 2.3 |
Utilization of reserve | -1.8 | -1.4 |
Adjustments related to pre-existing warranties (including changes in estimates) | -0.1 | -1 |
Balance as of end of period | $5.90 | $6.80 |
Minimum | ' | ' |
Product Warranties | ' | ' |
Warranty Term for most products | '3 months | ' |
Maximum | ' | ' |
Product Warranties | ' | ' |
Warranty Term for most products | '1 year | ' |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Item | ||
Net revenue: | ' | ' |
Total net revenue | $433.60 | $429 |
Operating income (loss): | ' | ' |
Total operating income | 39.5 | 35.4 |
Unallocated amounts: | ' | ' |
Restructuring and related charges | -2.9 | 0.8 |
Interest and other income (expense), net | 0.5 | -0.6 |
Interest expense | -8.3 | -5.2 |
(Loss) income before taxes | -3.6 | 0.8 |
Number of reporting units | 2 | ' |
Corporate | ' | ' |
Operating income (loss): | ' | ' |
Total operating income | -22.4 | -23.5 |
Segment Reconciling Items | ' | ' |
Unallocated amounts: | ' | ' |
Stock-based compensation | -15.7 | -15.7 |
Acquisition-related charges and amortization of intangibles | -15.1 | -14.1 |
Gain (loss) on disposal of long-lived assets | 0 | -0.3 |
Restructuring and related charges | -2.9 | 0.8 |
Other charges related to non-recurring activities | -1.6 | -0.5 |
Interest and other income (expense), net | 0.5 | -0.6 |
Interest expense | -8.3 | -5.2 |
Network Enablement | ' | ' |
Net revenue: | ' | ' |
Net Revenue | 132.8 | 145.1 |
Operating income (loss): | ' | ' |
Total operating income | 20.1 | 22.5 |
Service Enablement | ' | ' |
Net revenue: | ' | ' |
Net Revenue | 48.2 | 26.8 |
Operating income (loss): | ' | ' |
Total operating income | 0.8 | -9.9 |
Communications and Commercial Optical Products | ' | ' |
Net revenue: | ' | ' |
Net Revenue | 209.3 | 204.6 |
Operating income (loss): | ' | ' |
Total operating income | 25.1 | 27.2 |
Optical Security and Performance Products | ' | ' |
Net revenue: | ' | ' |
Net Revenue | 43.3 | 52.5 |
Operating income (loss): | ' | ' |
Total operating income | $15.90 | $19.10 |