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v3.21.2

Operating Segments and Geographic Information (Tables) | 12 Months Ended
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Jul. 03, 2021
Segment Reporting [Abstract] |
Schedule of Information on Reportable Segments | Information on the Company’s reportable segments is as follows (in millions):
| Year Ended July 3, 2021
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 650.5 |  |  | $ | 40.6 |  |  | $ | 691.1 |  |  | $ | 360.3 |  |  |  |  | $ | — |  |  | $ | 1,051.4 |
Service revenue | 96.1 |  |  | 50.7 |  |  | 146.8 |  |  | 0.7 |  |  |  |  | — |  |  | 147.5 |
Net revenue | $ | 746.6 |  |  | $ | 91.3 |  |  | $ | 837.9 |  |  | $ | 361.0 |  |  |  |  | $ | — |  |  | $ | 1,198.9 |
Gross profit | 474.2 |  |  | 59.9 |  |  | 534.1 |  |  | 218.1 |  |  |  |  | (37.8) |  |  | 714.4 |
Gross margin | 63.5 | % |  | 65.6 | % |  | 63.7 | % |  | 60.4 | % |  |  |  |  |  | 59.6 | %
Operating income |  |  |  |  | 92.2 |  |  | 161.3 |  |  |  |  | (111.3) |  |  | 142.2 |
Operating margin |  |  |  |  | 11.0 | % |  | 44.7 | % |  |  |  |  |  | 11.9 | %
| 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 | %
| Years Ended
| July 3, 2021 |  | June 27, 2020 |  | June 29, 2019
Corporate reconciling items impacting gross profit: |  |  |  |  |
Total segment gross profit | $ | 752.2 |  |  | $ | 704.2 |  |  | $ | 690.1 |
Stock-based compensation | (4.8) |  |  | (4.3) |  |  | (3.8) |
Amortization of intangibles | (33.2) |  |  | (32.7) |  |  | (34.4) |
Other charges unrelated to core operating performance | 0.2 |  |  | (1.9) |  |  | (0.5) |
GAAP gross profit | $ | 714.4 |  |  | $ | 665.3 |  |  | $ | 651.4 |
Corporate reconciling items impacting operating income: |  |  |  |  |
Total segment operating income | $ | 253.5 |  |  | $ | 210.9 |  |  | $ | 197.6 |
Stock-based compensation | (48.3) |  |  | (44.6) |  |  | (38.2) |
Amortization of intangibles | (66.5) |  |  | (67.8) |  |  | (72.5) |
Change in fair value of contingent liability (3) | 5.3 |  |  | 31.5 |  |  | 5.9 |
Other charges unrelated to core operating performance (1)(2) | (3.4) |  |  | (8.4) |  |  | (10.0) |
Restructuring and related charges | 1.6 |  |  | (3.5) |  |  | (15.4) |
GAAP operating income from continuing operations | $ | 142.2 |  |  | $ | 118.1 |  |  | $ | 67.4 |
(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 a $5.0 million in acquisition related costs. (3)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
| July 3, 2021 |  | June 27, 2020 |  | June 29, 2019
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 275.8 |  |  | $ | 54.2 |  |  | $ | 330.0 |  |  | $ | 288.3 |  |  | $ | 53.3 |  |  | $ | 341.6 |  |  | $ | 287.1 |  |  | $ | 55.0 |  |  | $ | 342.1 |
Other Americas | 72.7 |  |  | 12.9 |  |  | 85.6 |  |  | 57.8 |  |  | 15.4 |  |  | 73.2 |  |  | 69.4 |  |  | 14.8 |  |  | 84.2 |
Total Americas | $ | 348.5 |  |  | $ | 67.1 |  |  | $ | 415.6 |  |  | $ | 346.1 |  |  | $ | 68.7 |  |  | $ | 414.8 |  |  | $ | 356.5 |  |  | $ | 69.8 |  |  | $ | 426.3 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 265.8 |  |  | $ | 11.2 |  |  | $ | 277.0 |  |  | $ | 238.2 |  |  | $ | 7.5 |  |  | $ | 245.7 |  |  | $ | 209.4 |  |  | $ | 7.2 |  |  | $ | 216.6 |
Other Asia | 118.5 |  |  | 15.0 |  |  | 133.5 |  |  | 108.0 |  |  | 14.5 |  |  | 122.5 |  |  | 142.3 |  |  | 13.3 |  |  | 155.6 |
Total Asia-Pacific | $ | 384.3 |  |  | $ | 26.2 |  |  | $ | 410.5 |  |  | $ | 346.2 |  |  | $ | 22.0 |  |  | $ | 368.2 |  |  | $ | 351.7 |  |  | $ | 20.5 |  |  | $ | 372.2 |
EMEA: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 76.2 |  |  | $ | 0.4 |  |  | $ | 76.6 |  |  | $ | 64.5 |  |  | $ | 0.1 |  |  | $ | 64.6 |  |  | $ | 97.0 |  |  | $ | — |  |  | $ | 97.0 |
Other EMEA | 242.4 |  |  | 53.8 |  |  | 296.2 |  |  | 248.4 |  |  | 40.3 |  |  | 288.7 |  |  | 199.0 |  |  | 35.8 |  |  | 234.8 |
Total EMEA | $ | 318.6 |  |  | $ | 54.2 |  |  | $ | 372.8 |  |  | $ | 312.9 |  |  | $ | 40.4 |  |  | $ | 353.3 |  |  | $ | 296.0 |  |  | $ | 35.8 |  |  | $ | 331.8 |
Total net revenue | $ | 1,051.4 |  |  | $ | 147.5 |  |  | $ | 1,198.9 |  |  | $ | 1,005.2 |  |  | $ | 131.1 |  |  | $ | 1,136.3 |  |  | $ | 1,004.2 |  |  | $ | 126.1 |  |  | $ | 1,130.3 |
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 2021, 2020 and 2019 as summarized below (in millions):
| Years Ended
| July 3, 2021 |  | June 27, 2020 |  | June 29, 2019
SICPA - OSP customer | $ | 193.9 |  |  | $ | 139.9 |  |  | $ | 161.1 |
Property, plant and equipment, net was identified based on the operations in the corresponding geographic areas (in millions):
| Years Ended
| July 3, 2021 |  | June 27, 2020
United States | $ | 109.4 |  |  | $ | 85.0 |
Other Americas | 2.0 |  |  | 1.6 |
China | 45.4 |  |  | 43.8 |
Other Asia-Pacific | 5.4 |  |  | 5.8 |
United Kingdom | 27.3 |  |  | 30.1 |
Other EMEA | 6.5 |  |  | 6.2 |
Total property, plant and equipment, net | $ | 196.0 |  |  | $ | 172.5 |

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