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Restructuring and Related Charges | 9 Months Ended
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Apr. 01, 2017
Restructuring and Related Activities [Abstract] |
Restructuring and Related Charges | Note 11. Restructuring and Related Charges The Company has initiated various strategic restructuring events primarily intended to reduce its costs, consolidate its operations, rationalize the manufacturing of its products and align its businesses in response to market conditions. As of April 1, 2017 and July 2, 2016, the Company’s total restructuring accrual was $15.8 million and $18.0 million, respectively. During the three and nine months ended April 1, 2017 the Company recorded restructuring and related charges of $18.4 million and $20.2 million, respectively. During the three and nine months ended April 2, 2016 the Company recorded restructuring and related (benefits) charges of $(0.1) million and $1.7 million, respectively. The Company’s restructuring charges can include severance and benefit costs to eliminate a specified number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods. Summary of Restructuring Plans The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three and nine months ended April 1, 2017 were as follows (in millions):
| Balance July 2, 2016 |  | Nine Months Ended April 1, 2017 Charges (Benefits) |  | Cash Settlements |  | Non-cash Settlements and Other Adjustments |  | Balance April 1, 2017 |  | Three Months Ended April 1, 2017 Charges (Benefits)
Fiscal 2017 Plan |  |  |  |  |  |  |  |  |  |  |
Focused NSE Restructuring Plan (1) (2) | $ | — |  |  | $ | 20.7 |  |  | $ | (11.0 | ) |  | $ | — |  |  | $ | 9.7 |  |  | $ | 19.3 |
Other Plan (2) | — |  |  | 0.4 |  |  | (0.4 | ) |  | — |  |  | — |  |  | — |
Fiscal 2016 Plan |  |  |  |  |  |  |  |  |  |  |
NE, SE and Shared Services Agile Restructuring Plan (1) (2) | 8.6 |  |  | (0.7 | ) |  | (7.5 | ) |  | — |  |  | 0.4 |  |  | (0.8 | )
NE and SE Agile Restructuring Plan (1) | 0.8 |  |  | (0.1 | ) |  | (0.3 | ) |  | — |  |  | 0.4 |  |  | (0.1 | )
Fiscal 2015 Plan |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NE, SE and Shared Service Separation Restructuring Plan (1)(2) | 1.4 |  |  | (0.2 | ) |  | (1.1 | ) |  | — |  |  | 0.1 |  |  | — |
Plans Prior to Fiscal 2015 |  |  |  |  |  |  |  |  |  |  |  |
NE Product Strategy Restructuring Plan (1) | 1.5 |  |  | — |  |  | (0.4 | ) |  | (0.1 | ) |  | 1.0 |  |  | — |
NE Lease Restructuring Plan (2) | 4.0 |  |  | 0.1 |  |  | (1.1 | ) |  | — |  |  | 3.0 |  |  | — |
Other Plans (1)(2) | 1.7 |  |  | — |  |  | (0.5 | ) |  | — |  |  | 1.2 |  |  | — |
Total | $ | 18.0 |  |  | $ | 20.2 |  |  | $ | (22.3 | ) |  | $ | (0.1 | ) |  | $ | 15.8 |  |  | $ | 18.4 |
(1) Plan type includes workforce reduction cost. (2) Plan type includes lease exit cost. As of April 1, 2017 and July 2, 2016, $2.7 million and $4.7 million, respectively, of our restructuring liability was long-term in nature and included as a component of Other non-current liabilities, with the remaining short-term portion included as a component of Other current liabilities on the Consolidated Balance Sheets. Fiscal 2017 Plans Focused NSE Restructuring Plan During the third and second quarters of fiscal 2017, Management approved a plan within the NE and SE business segments as part of Viavi’s continued strategy to improve profitability in the Company’s Network and Service Enablement (NSE) business by narrowing the scope of the Service Enablement business and reducing costs by streamlining NSE operations. As a result, a restructuring charge of $20.6 million was recorded for severance and employee benefits for approximately 300 employees in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia. Payments related to the severance and benefits accrual are expected to be paid in the second quarter of fiscal 2018. Fiscal 2016 Plans NE, SE and Shared Service Agile Restructuring Plan During the fourth quarter of fiscal 2016, Management approved a plan within the NE and SE business segments and Shared Services function for organizational alignment and consolidation as part of Viavi’s continued commitment for a more cost effective organization. As a result approximately 170 employees primarily in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia 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 2018. NE and SE Agile Restructuring Plan During the sec ond quarter of fiscal 2016, Management approved a plan primarily impacting the NE and SE business segments as part of Viavi’s ongoing commitment for an agile and more efficient operating structure. As a result approximately 40 employees primarily in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia 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 2018. Fiscal 2015 Plans NE, SE and Shared Service Separation Restructuring Plan During the second, third and fourth quarters of fiscal 2015, Management approved a plan to eliminate certain positions in its shared services functions in connection with the Company’s plan to split into two separate public companies. Further, Management consolidated its operations, sales and R&D organizations and eliminated positions within the NE and SE segments to align to the Company’s product market strategy and lower manufacturing costs in connection with the separation. As a result, approximately 330 employees in manufacturing, R&D and SG&A functions located in North America, Latin America, Europe and Asia 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 2018. During the fourth quarter of fiscal 2015, Management also approved a plan in the NE and SE segment to exit the space in Roanoke, Virginia. As of July 2, 2016, the Company exited the workspace in Roanoke under the plan. Payments related to the Roanoke lease costs are expected to be paid by the end of the fourth quarter of fiscal 2017. Plans Prior to Fiscal 2015 NE Product Strategy Restructuring Plan During the third quarter of fiscal 2014, Management approved a NE plan 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, approximately 60 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 During the second quarter of fiscal 2014, Management approved a NE plan to exit the remaining space in Germantown, Maryland. As of June 28, 2014, the Company exited the space in Germantown under the plan. The fair value of the remaining contractual obligations, net of sublease income, as of April 1, 2017 was $3.0 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019. As of April 1, 2017, the restructuring accrual for other plans that commenced prior to fiscal year 2015 was $1.2 million, which consists of immaterial accruals from various restructuring plans.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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