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Operating Segments and Geographic Information (Tables) | 12 Months Ended
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Jul. 01, 2017
Segment Reporting [Abstract] |
Schedule of information on reportable segments | The segment information for all periods presented has been revised to be comparable with the changes implemented in the first quarter of fiscal 2016 in the Company’s segment reporting measures. Information on reportable segments is as follows (in millions):
| Year Ended July 1, 2017
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Total Segment Measures |  | Reconciling Items |  | Consolidated GAAP Measures
Net revenue | $ | 444.0 |  |  | $ | 135.2 |  |  | $ | 579.2 |  |  | $ | 232.2 |  |  | $ | 811.4 |  |  | $ | — |  |  | $ | 811.4 |
Gross profit | 286.3 |  |  | 86.2 |  |  | 372.5 |  |  | 133.8 |  |  | 506.3 |  |  | (20.3 | ) |  | 486.0 |
Gross margin | 64.5 | % |  | 63.8 | % |  | 64.3 | % |  | 57.6 | % |  | 62.4 | % |  |  |  | 59.9 | %
Operating income |  |  |  |  | 7.3 |  |  | 100.3 |  |  | 107.6 |  |  | (94.0 | ) |  | 13.6 |
Operating margin |  |  |  |  | 1.3 | % |  | 43.2 | % |  | 13.3 | % |  |  |  | 1.7 | %
| Year Ended July 2, 2016
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Total Segment Measures |  | Reconciling Items |  | Consolidated GAAP Measures
Net revenue | $ | 504.6 |  |  | $ | 153.6 |  |  | $ | 658.2 |  |  | $ | 248.1 |  |  | $ | 906.3 |  |  | $ | — |  |  | $ | 906.3 |
Gross profit | 329.7 |  |  | 99.4 |  |  | 429.1 |  |  | 143.1 |  |  | 572.2 |  |  | (22.5 | ) |  | 549.7 |
Gross margin | 65.3 | % |  | 64.7 | % |  | 65.2 | % |  | 57.7 | % |  | 63.1 | % |  |  |  | 60.7 | %
Operating income (loss) |  |  |  |  | 12.7 |  |  | 102.9 |  |  | 115.6 |  |  | (199.9 | ) |  | (84.3 | )
Operating margin |  |  |  |  | 1.9 | % |  | 41.5 | % |  | 12.8 | % |  |  |  | (9.3 | )%
| Year Ended June 27, 2015
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Total Segment Measures |  | Reconciling Items |  | Consolidated GAAP Measures
Net revenue | $ | 506.8 |  |  | $ | 174.3 |  |  | $ | 681.1 |  |  | $ | 192.8 |  |  | $ | 873.9 |  |  | $ | — |  |  | $ | 873.9 |
Gross profit | 333.9 |  |  | 119.2 |  |  | 453.1 |  |  | 104.3 |  |  | 557.4 |  |  | (37.3 | ) |  | 520.1 |
Gross margin | 65.9 | % |  | 68.4 | % |  | 66.5 | % |  | 54.1 | % |  | 63.8 | % |  |  |  | 59.5 | %
Operating income (loss) |  |  |  |  | (0.1 | ) |  | 68.1 |  |  | 68.0 |  |  | (143.8 | ) |  | (75.8 | )
Operating margin |  |  |  |  | — | % |  | 35.3 | % |  | 7.8 | % |  |  |  | (8.7 | )%
| Years Ended
| July 1, 2017 |  | July 2, 2016 |  | June 27, 2015
Corporate reconciling items impacting gross profit: |  |  |  |  |
Total segment gross profit | $ | 506.3 |  |  | $ | 572.2 |  |  | $ | 557.4 |
Stock-based compensation | (3.6 | ) |  | (4.8 | ) |  | (4.2 | )
Amortization of intangibles | (14.3 | ) |  | (17.3 | ) |  | (31.9 | )
Other charges unrelated to core operating performance | (2.4 | ) |  | (0.4 | ) |  | (1.2 | )
GAAP gross profit | $ | 486.0 |  |  | $ | 549.7 |  |  | $ | 520.1 |
Corporate reconciling items impacting operating income: |  |  |  |  |
Total segment operating income | $ | 107.6 |  |  | $ | 115.6 |  |  | $ | 68.0 |
Stock-based compensation | (33.2 | ) |  | (42.4 | ) |  | (47.5 | )
Amortization of intangibles | (28.3 | ) |  | (31.9 | ) |  | (51.4 | )
Impairment of goodwill | — |  |  | (91.4 | ) |  | — |
Other charges unrelated to core operating performance (1)(2)(3) | (10.9 | ) |  | (23.7 | ) |  | (18.1 | )
Restructuring and related charges | (21.6 | ) |  | (10.5 | ) |  | (26.8 | )
GAAP operating income (loss) from continuing operations | $ | 13.6 |  |  | $ | (84.3 | ) |  | $ | (75.8 | )
(1) | During the year ended July 1, 2017, other charges unrelated to core operating performance primarily consisted of $5.7 million loss on disposal of long-lived assets and $1.5 million of Viavi-specific charges related to the Separation.
(2) | During the year ended July 2, 2016, other charges unrelated to core operating performance primarily consisted of (a) an $8.4 million charge related to a litigation ruling impacting our U.K. pension obligation, (b) $5.0 million of Viavi-specific charges related to the Separation and (c) $3.5 million of non-recurring incremental severance and related costs upon the exit of a key executive.
(3) | During the year ended June 27, 2015, other charges unrelated to core operating performance primarily consisted of $9.8 million of Viavi-specific charges related to the Separation and $3.6 million IPR&D impairment charge for an ongoing project related to the fiscal 2014 acquisition of Trendium as discussed in “Note 9. Acquired Developed Technology and Other Intangibles.”
The following table presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue (dollars in millions):
| Years Ended
| July 1, 2017 |  | July 2, 2016 |  | June 27, 2015
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 307.3 |  |  | 37.9 | % |  | $ | 396.6 |  |  | 43.8 | % |  | $ | 424.3 |  |  | 48.5 | %
Other Americas | 71.3 |  |  | 8.8 | % |  | $ | 66.0 |  |  | 7.3 | % |  | $ | 62.5 |  |  | 7.2 | %
Total Americas | $ | 378.6 |  |  | 46.7 | % |  | $ | 462.6 |  |  | 51.1 | % |  | $ | 486.8 |  |  | 55.7 | %
Asia-Pacific |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 100.8 |  |  | 12.4 | % |  | $ | 103.2 |  |  | 11.3 | % |  | $ | 83.1 |  |  | 9.5 | %
Other Asia | 72.4 |  |  | 8.9 | % |  | 63.1 |  |  | 7.0 | % |  | 61.4 |  |  | 7.0 | %
Total Asia-Pacific | $ | 173.2 |  |  | 21.3 | % |  | $ | 166.3 |  |  | 18.3 | % |  | $ | 144.5 |  |  | 16.5 | %
EMEA: |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 124.0 |  |  | 15.3 | % |  | $ | 135.6 |  |  | 15.0 | % |  | $ | 97.7 |  |  | 11.2 | %
Other EMEA | 135.6 |  |  | 16.7 | % |  | 141.8 |  |  | 15.6 | % |  | 144.9 |  |  | 16.6 | %
Total EMEA | $ | 259.6 |  |  | 32.0 | % |  | $ | 277.4 |  |  | 30.6 | % |  | $ | 242.6 |  |  | 27.8 | %
Total net revenue | $ | 811.4 |  |  | 100.0 | % |  | $ | 906.3 |  |  | 100.0 | % |  | $ | 873.9 |  |  | 100.0 | %
Following the separation from Lumentum, one customer served by our OSP segment generated 10% or more of Viavi net revenue from continuing operations during fiscal 2017, 2016 and 2015 as summarized below (in millions):
| Years Ended
| July 1, 2017 |  | July 2, 2016 |  | June 27, 2015
Customer A - OSP customer | $ | 166.8 |  |  | $ | 190.1 |  |  | $ | 143.0 |
Property, plant and equipment, net were identified based on the operations in the corresponding geographic areas (in millions):
| Years Ended
| July 1, 2017 |  | July 2, 2016
United States | $ | 76.0 |  |  | $ | 85.6 |
Other Americas | 4.4 |  |  | 4.3 |
China | 41.1 |  |  | 27.3 |
Other Asia-Pacific | 5.0 |  |  | 4.8 |
Germany | 7.9 |  |  | 7.9 |
Other EMEA | 2.5 |  |  | 3.1 |
Total property, plant and equipment, net | $ | 136.9 |  |  | $ | 133.0 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
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