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Operating Segments and Geographic Information (Tables)

6 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Schedule of information on reportable segments

The following tables presents information on the Company’s reportable segments for the three months ended December 28, 2019 and December 29, 2018 (in millions):

	Three Months Ended December 28, 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	$	183.9			$	18.6			$	202.5			$	79.4			$	—			$	281.9
Service revenue	19.1				12.6				31.7				0.1				—				31.8
Net revenue	$	203.0			$	31.2			$	234.2			$	79.5			$	—			$	313.7
Gross profit	$	134.8			$	20.8			$	155.6			$	43.6			$	(9.7	)		$	189.5
Gross margin	66.4		%		66.7		%		66.4		%		54.8		%						60.4		%
Operating income									$	37.5			$	30.4			$	(22.9	)		$	45.0
Operating margin									16.0		%		38.2		%						14.3		%

	Three Months Ended December 29, 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	$	176.0			$	13.8			$	189.8			$	83.0			$	—			$	272.8
Service revenue	19.5				14.4				33.9				0.2				—				34.1
Net revenue	$	195.5			$	28.2			$	223.7			$	83.2			$	—			$	306.9
Gross profit	$	125.7			$	20.3			$	146.0			$	41.8			$	(9.8	)		$	178.0
Gross margin	64.3		%		72.0		%		65.3		%		50.2		%						58.0		%
Operating income									$	32.8			$	31.1			$	(31.0	)		$	32.9
Operating margin									14.7		%		37.4		%						10.7		%

	Three Months Ended
	December 28, 2019				December 29, 2018
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	199.2			$	187.8
Stock-based compensation	(1.0		)		(0.9		)
Amortization of intangibles	(8.4		)		(8.5		)
Other charges unrelated to core operating performance	(0.3		)		(0.4		)
GAAP gross profit	$	189.5			$	178.0
Corporate reconciling items impacting operating income:
Total segment operating income	$	67.9			$	63.9
Stock-based compensation	(11.3		)		(9.6		)
Amortization of intangibles	(17.2		)		(18.9		)
Change in fair value of contingent liability	6.0				—
Other charges unrelated to core operating performance (1)	(1.3		)		(2.2		)
Restructuring and related (benefits) charges	0.9				(0.3		)
GAAP operating income from continuing operations	$	45.0			$	32.9

⁽¹⁾  During the three months ended December 28, 2019 and December 29, 2018, other charges unrelated to core operating performance primarily consisted of certain acquisition and integration related changes, transformational initiatives such as, site consolidations, and reorganization, loss on sale of investments and loss on disposal of long-lived assets.

The following tables presents information on the Company’s reportable segments for the six months ended December 28, 2019 and December 29, 2018 (in millions):

	Six Months Ended December 28, 2019
	Network and Service Enablement
	Network Enablement				Service Enablement				Network and Service Enablement				Optical Security and Performance Products				Other Items (1)				Consolidated GAAP Measures
Product revenue	$	361.2			$	26.3			$	387.5			$	159.2			$	—			$	546.7
Service revenue	40.7				25.8				66.5				0.3				—				66.8
Net revenue	$	401.9			$	52.1			$	454.0			$	159.5			$	—			$	613.5
Gross profit	$	262.8			$	33.4			$	296.2			$	86.9			$	(19.2	)		$	363.9
Gross margin	65.4		%		64.1		%		65.2		%		54.5		%						59.3		%
Operating income									$	59.8			$	60.8			$	(54.9	)		$	65.7
Operating margin									13.2		%		38.1		%						10.7		%

	Six Months Ended December 29, 2018
	Network and Service Enablement
	Network Enablement				Service Enablement				Network and Service Enablement				Optical Security and Performance Products				Other Items (1)				Consolidated GAAP Measures
Product revenue	$	325.9			$	27.4			$	353.3			$	160.6			$	—			$	513.9
Service revenue	34.1				27.0				61.1				0.4				—				61.5
Net revenue	$	360.0			$	54.4			$	414.4			$	161.0			$	—			$	575.4
Gross profit	$	228.6			$	38.6			$	267.2			$	81.2			$	(20.0	)		$	328.4
Gross margin	63.5		%		71.0		%		64.5		%		50.4		%						57.1		%
Operating income									$	49.2			$	58.5			$	(76.0	)		$	31.7
Operating margin									11.9		%		36.3		%						5.5		%

	Six Months Ended
	December 28, 2019				December 29, 2018
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	383.1			$	348.4
Stock-based compensation	(2.0		)		(1.7		)
Amortization of intangibles	(16.8		)		(17.9		)
Other charges unrelated to core operating performance (2)	(0.4		)		(0.4		)
GAAP gross profit	$	363.9			$	328.4
Corporate reconciling items impacting operating income:
Total segment operating income	$	120.6			$	107.7
Stock-based compensation	(21.6		)		(17.7		)
Amortization of intangibles	(34.3		)		(38.1		)
Change in fair value of contingent liability	4.3				—
Other charges unrelated to core operating performance (2)	(3.9		)		(5.1		)
Restructuring and related (benefits) charges	0.6				(15.1		)
GAAP operating income from continuing operations	$	65.7			$	31.7

Schedule of revenue by geographic regions

The following tables presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue for the three and six months ended December 28, 2019 and December 29, 2018, (in millions):

	Three Months Ended
	December 28, 2019												December 29, 2018
	Product Revenue				Service Revenue				Total				Product Revenue				Service Revenue				Total
Americas:
United States	$	83.1			$	13.1			$	96.2			$	89.8			$	14.3			$	104.1
Other Americas	17.2				3.4				20.6				17.3				4.0				21.3
Total Americas	$	100.3			$	16.5			$	116.8			$	107.1			$	18.3			$	125.4
Asia-Pacific:
Greater China	$	78.4			$	2.1			$	80.5			$	64.8			$	2.1			$	66.9
Other Asia-Pacific	28.7				3.8				32.5				30.4				3.6				34.0
Total Asia-Pacific	$	107.1			$	5.9			$	113.0			$	95.2			$	5.7			$	100.9
EMEA:
Switzerland	$	13.4			$	0.1			$	13.5			$	23.0			$	—			$	23.0
Other EMEA	61.1				9.3				70.4				47.5				10.1				57.6
Total EMEA	$	74.5			$	9.4			$	83.9			$	70.5			$	10.1			$	80.6
Total net revenue	$	281.9			$	31.8			$	313.7			$	272.8			$	34.1			$	306.9

	Six Months Ended
	December 28, 2019												December 29, 2018
	Product Revenue				Service Revenue				Total				Product Revenue				Service Revenue				Total
Americas:
United States	$	154.5			$	26.7			$	181.2			$	149.9			$	27.0			$	176.9
Other Americas	33.8				7.5				41.3				35.2				7.1				42.3
Total Americas	$	188.3			$	34.2			$	222.5			$	185.1			$	34.1			$	219.2
Asia-Pacific:
Greater China	$	148.9			$	3.5			$	152.4			$	123.5			$	2.3			$	125.8
Other Asia-Pacific	60.0				7.8				67.8				66.4				7.1				73.5
Total Asia-Pacific	$	208.9			$	11.3			$	220.2			$	189.9			$	9.4			$	199.3
EMEA:
Switzerland	$	25.6			$	0.1			$	25.7			$	48.7			$	—			$	48.7
Other EMEA	123.9				21.2				145.1				90.2				18.0				108.2
Total EMEA	$	149.5			$	21.3			$	170.8			$	138.9			$	18.0			$	156.9
Total net revenue	$	546.7			$	66.8			$	613.5			$	513.9			$	61.5			$	575.4

X

- Definition

Tabular disclosure of revenue from external customers by geographic areas attributed to the entity's country of domicile and to foreign countries from which the entity derives revenue.

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