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v3.20.2

Operating Segments and Geographic Information (Tables) | 12 Months Ended
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Jun. 27, 2020
Segment Reporting [Abstract] |
Schedule of Information on Reportable Segments | Information on the Company’s reportable segments is as follows (in millions):
| Year Ended June 27, 2020
| Network and Service Enablement |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 669.1 |  |  | $ | 49.9 |  |  | $ | 719.0 |  |  | $ | 286.2 |  |  | $ | — |  |  | $ | 1,005.2 |
Service revenue | 77.6 |  |  | 52.8 |  |  | 130.4 |  |  | 0.7 |  |  | — |  |  | 131.1 |
Net revenue | $ | 746.7 |  |  | $ | 102.7 |  |  | $ | 849.4 |  |  | $ | 286.9 |  |  | $ | — |  |  | $ | 1,136.3 |
Gross profit | 482.4 |  |  | 68.8 |  |  | 551.2 |  |  | 153.0 |  |  | (38.9 | ) |  | 665.3 |
Gross margin | 64.6 | % |  | 67.0 | % |  | 64.9 | % |  | 53.3 | % |  |  |  | 58.5 | %
Operating income |  |  |  |  | 108.8 |  |  | 102.1 |  |  | (92.8 | ) |  | 118.1 |
Operating margin |  |  |  |  | 12.8 | % |  | 35.6 | % |  |  |  | 10.4 | %
| Year Ended June 29, 2019
| Network and Service Enablement |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 666.2 |  |  | $ | 49.7 |  |  | $ | 715.9 |  |  | $ | 288.3 |  |  | $ | — |  |  | $ | 1,004.2 |
Service revenue | 71.6 |  |  | 53.7 |  |  | 125.3 |  |  | 0.8 |  |  | — |  |  | 126.1 |
Net revenue | $ | 737.8 |  |  | $ | 103.4 |  |  | $ | 841.2 |  |  | $ | 289.1 |  |  | $ | — |  |  | $ | 1,130.3 |
Gross profit | 473.3 |  |  | 71.0 |  |  | 544.3 |  |  | 145.8 |  |  | (38.7 | ) |  | 651.4 |
Gross margin | 64.2 | % |  | 68.7 | % |  | 64.7 | % |  | 50.4 | % |  |  |  | 57.6 | %
Operating income |  |  |  |  | 99.6 |  |  | 98.0 |  |  | (130.2 | ) |  | 67.4 |
Operating margin |  |  |  |  | 11.8 | % |  | 33.9 | % |  |  |  | 6.0 | %
| Year Ended June 30, 2018
| Network and Service Enablement |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 497.1 |  |  | $ | 59.3 |  |  | $ | 556.4 |  |  | $ | 216.0 |  |  | $ | — |  |  | $ | 772.5 |
Service revenue | 42.0 |  |  | 59.2 |  |  | 101.2 |  |  | 2.1 |  |  | — |  |  | 103.2 |
Net revenue | $ | 539.1 |  |  | $ | 118.5 |  |  | $ | 657.6 |  |  | $ | 218.1 |  |  | $ | — |  |  | $ | 875.7 |
Gross profit | 334.3 |  |  | 82.6 |  |  | 416.9 |  |  | 115.2 |  |  | (43.7 | ) |  | 488.4 |
Gross margin | 62.0 | % |  | 69.7 | % |  | 63.4 | % |  | 52.8 | % |  |  |  | 55.8 | %
Operating income |  |  |  |  | 43.6 |  |  | 78.2 |  |  | (119.9 | ) |  | 1.9 |
Operating margin |  |  |  |  | 6.6 | % |  | 35.9 | % |  |  |  | 0.2 | %
| Years Ended
| June 27, 2020 |  | June 29, 2019 |  | June 30, 2018
Corporate reconciling items impacting gross profit: |  |  |  |  |
Total segment gross profit | $ | 704.2 |  |  | $ | 690.1 |  |  | $ | 532.1 |
Stock-based compensation | (4.3 | ) |  | (3.8 | ) |  | (3.3 | )
Amortization of intangibles | (32.7 | ) |  | (34.4 | ) |  | (26.7 | )
Other charges unrelated to core operating performance | (1.9 | ) |  | (0.5 | ) |  | (13.7 | )
GAAP gross profit | $ | 665.3 |  |  | $ | 651.4 |  |  | $ | 488.4 |
Corporate reconciling items impacting operating income: |  |  |  |  |
Total segment operating income | $ | 210.9 |  |  | $ | 197.6 |  |  | $ | 121.8 |
Stock-based compensation | (44.6 | ) |  | (38.2 | ) |  | (30.5 | )
Amortization of intangibles | (67.8 | ) |  | (72.5 | ) |  | (47.7 | )
Change in fair value of contingent liability (4) | 31.5 |  |  | 5.9 |  |  | — |
Other charges unrelated to core operating performance (1)(2)(3) | (8.4 | ) |  | (10.0 | ) |  | (33.4 | )
Restructuring and related charges | (3.5 | ) |  | (15.4 | ) |  | (8.3 | )
GAAP operating income from continuing operations | $ | 118.1 |  |  | $ | 67.4 |  |  | $ | 1.9 |
(1) | During the years ended June 27, 2020, other charges unrelated to core operating performance primarily consisted of $1.4 million in acquisition related costs.
(2) | During the years ended June 29, 2019, other charges unrelated to core operating performance primarily consisted of $5.0 million in acquisition related costs.
(3) | During the years ended June 30, 2018, other charges unrelated to core operating performance primarily consisted of a $12.7 million in acquisition related costs and $12.4 million in amortization of inventory step-up.
(4) Refer to “Note 8. Fair Value Measurements” for further detail. The following table presents net revenue by the three geographic regions the Company operates in and net revenue from countries that exceeded 10% of the Company’s total net revenue (in millions):
| Years Ended
| June 27, 2020 |  | June 29, 2019 |  | June 30, 2018
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 288.3 |  |  | $ | 53.3 |  |  | $ | 341.6 |  |  | $ | 287.1 |  |  | $ | 55.0 |  |  | $ | 342.1 |  |  | $ | 282.6 |  |  | $ | 52.9 |  |  | $ | 335.5 |
Other Americas | 57.8 |  |  | 15.4 |  |  | 73.2 |  |  | 69.4 |  |  | 14.8 |  |  | 84.2 |  |  | 64.2 |  |  | 16.8 |  |  | 81.0 |
Total Americas | $ | 346.1 |  |  | $ | 68.7 |  |  | $ | 414.8 |  |  | $ | 356.5 |  |  | $ | 69.8 |  |  | $ | 426.3 |  |  | $ | 346.8 |  |  | $ | 69.7 |  |  | $ | 416.5 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 238.2 |  |  | $ | 7.5 |  |  | $ | 245.7 |  |  | $ | 209.4 |  |  | $ | 7.2 |  |  | $ | 216.6 |  |  | $ | 126.6 |  |  | $ | 2.0 |  |  | $ | 128.6 |
Other Asia | 108.0 |  |  | 14.5 |  |  | 122.5 |  |  | 142.3 |  |  | 13.3 |  |  | 155.6 |  |  | 78.3 |  |  | 6.9 |  |  | 85.2 |
Total Asia-Pacific | $ | 346.2 |  |  | $ | 22.0 |  |  | $ | 368.2 |  |  | $ | 351.7 |  |  | $ | 20.5 |  |  | $ | 372.2 |  |  | $ | 204.9 |  |  | $ | 8.9 |  |  | $ | 213.8 |
EMEA: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 64.5 |  |  | $ | 0.1 |  |  | $ | 64.6 |  |  | $ | 97.0 |  |  | $ | — |  |  | $ | 97.0 |  |  | $ | 75.2 |  |  | $ | 0.1 |  |  | $ | 75.3 |
Other EMEA | 248.4 |  |  | 40.3 |  |  | 288.7 |  |  | 199.0 |  |  | 35.8 |  |  | 234.8 |  |  | 145.6 |  |  | 24.5 |  |  | 170.1 |
Total EMEA | $ | 312.9 |  |  | $ | 40.4 |  |  | $ | 353.3 |  |  | $ | 296.0 |  |  | $ | 35.8 |  |  | $ | 331.8 |  |  | $ | 220.8 |  |  | $ | 24.6 |  |  | $ | 245.4 |
Total net revenue | $ | 1,005.2 |  |  | $ | 131.1 |  |  | $ | 1,136.3 |  |  | $ | 1,004.2 |  |  | $ | 126.1 |  |  | $ | 1,130.3 |  |  | $ | 772.5 |  |  | $ | 103.2 |  |  | $ | 875.7 |
SICPA Holding SA Company (SICPA), served by the Company’s OSP segment, generated more than 10% of VIAVI net revenue from continuing operations during fiscal 2020, 2019 and 2018 as summarized below (in millions):
| Years Ended
| June 27, 2020 |  | June 29, 2019 |  | June 30, 2018
SICPA - OSP customer | $ | 139.9 |  |  | $ | 161.1 |  |  | $ | 129.3 |
Property, plant and equipment, net was identified based on the operations in the corresponding geographic areas (in millions):
| Years Ended
| June 27, 2020 |  | June 29, 2019
United States | $ | 85.0 |  |  | $ | 89.4 |
Other Americas | 1.6 |  |  | 1.6 |
China | 43.8 |  |  | 49.0 |
Other Asia-Pacific | 5.8 |  |  | 5.6 |
United Kingdom | 30.1 |  |  | 23.8 |
Other EMEA | 6.2 |  |  | 10.5 |
Total property, plant and equipment, net | $ | 172.5 |  |  | $ | 179.9 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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