XML 44 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Operating Segments and Geographic Information (Tables)
 12 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Schedule of information on reportable segments
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 (in millions):
 
Years Ended
 
June 30, 2018
 
July 1, 2017
 
July 2, 2016
Americas:
 
 
 
 
 
 
 
 
 
 
 
United States
$
336.3

 
38.2
%
 
$
307.3

 
37.9
%
 
$
396.6

 
43.8
%
Other Americas
83.8

 
9.5
%
 
71.3

 
8.8
%
 
66.0

 
7.3
%
Total Americas
$
420.1

 
47.7
%
 
$
378.6

 
46.7
%
 
$
462.6

 
51.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Asia-Pacific:
 
 
 
 
 
 
 
 
 
 
 
Greater China
$
128.6

 
14.6
%
 
$
100.8

 
12.4
%
 
$
103.2

 
11.3
%
Other Asia
84.4

 
9.6
%
 
72.4

 
8.9
%
 
63.1

 
7.0
%
Total Asia-Pacific
$
213.0

 
24.2
%
 
$
173.2

 
21.3
%
 
$
166.3

 
18.3
%
 
 
 
 
 
 
 
 
 
 
 
 
EMEA:
 
 
 
 
 
 
 
 
 
 
 
Switzerland
$
75.1

 
8.5
%
 
$
124.0

 
15.3
%
 
$
135.6

 
15.0
%
Other EMEA
172.2

 
19.6
%
 
135.6

 
16.7
%
 
141.8

 
15.6
%
Total EMEA
$
247.3

 
28.1
%
 
$
259.6

 
32.0
%
 
$
277.4

 
30.6
%
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
$
880.4

 
100.0
%
 
$
811.4

 
100.0
%
 
$
906.3

 
100.0
%
One customer served by our OSP segment generated 10% or more of VIAVI net revenue from continuing operations during fiscal 2018, 2017 and 2016 as summarized below (in millions):
 
Years Ended
 
June 30, 2018
 
July 1, 2017
 
July 2, 2016
Customer A - OSP customer
$
129.3

 
$
166.8

 
$
190.1

Property, plant and equipment, net were identified based on the operations in the corresponding geographic areas (in millions):
 
Years Ended
 
June 30, 2018
 
July 1, 2017
United States
$
79.8

 
$
76.0

Other Americas
3.1

 
4.4

China
49.9

 
41.1

Other Asia-Pacific
5.9

 
5.0

United Kingdom
20.9

 
0.8

Other EMEA
10.9

 
9.6

Total property, plant and equipment, net
$
170.5

 
$
136.9

Information on our reportable segments is as follows (in millions):
 
Year Ended June 30, 2018
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Other Items
 
Consolidated GAAP Measures
Net revenue
$538.5
 
$123.8
 
$662.3
 
$218.1
 
$880.4
 
$—
 
$880.4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
333.6
 
87.1
 
420.7
 
115.2
 
535.9
 
(43.7)
 
492.2
Gross margin
61.9%
 
70.4%
 
63.5%
 
52.8%
 
60.9%
 
 
 
55.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
 
 
 
46.8
 
78.2
 
125.0
 
(119.9)
 
5.1
Operating margin
 
 
 
 
7.1%
 
35.9%
 
14.2%
 
 
 
0.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended July 1, 2017
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Other 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 Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Other 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
 
 
 
 
12.7
 
102.9
 
115.6
 
(199.9)
 
(84.3)
Operating margin
 
 
 
 
1.9%
 
41.5%
 
12.8%
 
 
 
(9.3)%

 
Years Ended
 
June 30, 2018
 
July 1, 2017
 
July 2, 2016
Corporate reconciling items impacting gross profit:
 
 
 
 
 
Total segment gross profit
$
535.9

 
$
506.3

 
$
572.2

Stock-based compensation
(3.3
)
 
(3.6
)
 
(4.8
)
Amortization of intangibles
(26.7
)
 
(14.3
)
 
(17.3
)
Other charges unrelated to core operating performance (1)
(13.7
)
 
(2.4
)
 
(0.4
)
GAAP gross profit
$
492.2

 
$
486.0

 
$
549.7

 
 
 
 
 
 
Corporate reconciling items impacting operating income:
 
 
 
 
 
Total segment operating income
$
125.0

 
$
107.6

 
$
115.6

Stock-based compensation
(30.5
)
 
(33.2
)
 
(42.4
)
Amortization of intangibles
(47.7
)
 
(28.3
)
 
(31.9
)
Impairment of goodwill
—

 
—

 
(91.4
)
Other charges unrelated to core operating performance (1)(2)(3)
(33.4
)
 
(10.9
)
 
(23.7
)
Restructuring and related charges
(8.3
)
 
(21.6
)
 
(10.5
)
GAAP operating income (loss)
$
5.1

 
$
13.6

 
$
(84.3
)


(1)
During the year ended June 30, 2018, other charges unrelated to core operating performance primarily consisted of $12.7 million acquisition related cost and $12.4 million amortization of inventory step-up.

(2)
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.

(3)
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.