XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Debts and Letters of Credit | 3 Months Ended
--- | ---
Oct. 01, 2016
Debt Disclosure [Abstract] |
Debts and Letters of Credit | Note 10. Debts and Letters of Credit As of October 1, 2016 and July 2, 2016, the Company’s long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component, net of unamortized debt discounts and issuance cost, of the 0.625% Senior Convertible Notes as discussed below. The following table presents the carrying amounts of the liability and equity components (in millions):
| October 1, 2016 |  | July 2, 2016
Principal amount of 0.625% Senior Convertible Notes | $ | 650.0 |  |  | $ | 650.0 |
Unamortized discount of liability component | (54.8 | ) |  | (61.7 | )
Unamortized debt issuance cost (1) | $ | (4.4 | ) |  | $ | (5.0 | )
Carrying amount of liability component | $ | 590.8 |  |  | $ | 583.3 |
Carrying amount of equity component (2) | $ | 134.4 |  |  | $ | 134.4 |
(1) | In April 2015, the Financial Accounting Standards Board ("FASB") issued new authoritative guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding liability, consistent with debt discounts or premiums. This guidance is effective for the Company in the first quarter of fiscal 2017 for its convertible debt, and was applied retrospectively for all periods reported.
(2) | Included in Accumulated 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 October 1, 2016 and July 2, 2016. 0.625% Senior Convertible Notes (“2033 Notes”) On August 21, 2013, the Company issued $650.0 million aggregate principal amount of 0.625% Senior Convertible Notes due 2033 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The proceeds from the 2033 Notes amounted to $636.3 million after issuance costs. The 2033 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 0.625% payable in cash semi-annually in arrears on February 15 and August 15 of each year. The 2033 Notes mature on August 15, 2033 unless earlier converted, redeemed or repurchased. Following the Separation on August 1, 2015, the conversion price per share was adjusted pursuant to the terms of the 2033 Notes relating to the occurrence of the Separation. Effective as of the end of the business day on August 17, 2015, the initial conversion price per share was adjusted to $11.28 per share of the Company’s common stock traded on NASDAQ under the ticker symbol “VIAV.” The 2033 Notes and its terms are described in “Note 11. Debts and Letters of Credit” of the Company’s Annual Report on Form 10-K for the year ended July 2, 2016. Based on quoted market prices as of October 1, 2016 and July 2, 2016, the fair value of the 2033 Notes was approximately $649.3 million and $633.0 million. The 2033 Notes are classified within Level 2 as they are not actively traded in markets. The following table presents the effective interest rate and the interest expense for the contractual interest and the accretion of debt discount (in millions, except for the effective interest rate):
| Three Months Ended
| October 1, 2016 |  | October 3, 2015
Effective interest rate | 5.4 | % |  | 5.4 | %
Interest expense-contractual interest | $ | 1.0 |  |  | $ | 1.0 |
Accretion of debt discount | 6.9 |  |  | 6.5 |
Outstanding Letters of Credit As of October 1, 2016, the Company had 11 standby letters of credit totaling $15.1 million.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration