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Operating Segments and Geographic Information
 12 Months Ended
Jul. 03, 2021
Segment Reporting [Abstract]  
Operating Segments and Geographic Information
Note 19. Operating Segments and Geographic Information
The Company evaluates its reportable segments in accordance with the authoritative guidance on segment reporting. The Company’s Chief Executive Officer, the Company’s Chief Operating Decision Maker (CODM) uses operating segment financial information to evaluate segment performance and to allocate resources.
The Company’s reportable segments are:
(i) Network Enablement:
NE provides testing solutions that access the network to perform build-out and maintenance tasks. These solutions include instruments, software and services to design, build, activate, certify, troubleshoot and optimize networks. The Company also offers a range of product support and professional services such as repair, calibration, software support and technical assistance for its products. NE’s avionics products provide test and measuring solutions for aviation, aerospace, government, defense, communications and public safety.
(ii) Service Enablement:
SE solutions are embedded systems that yield network, service and application performance data. These solutions—including instruments, microprobes and software—monitor, collect and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization.
(iii) Optical Security and Performance Products:
OSP provides innovative, precision, high performance optical products for anti-counterfeiting, consumer and industrial, government, automotive, industrial and other markets.
Segment Reporting
The CODM manages the Company in two broad business categories: NSE and OSP. The CODM evaluates segment performance of the NSE business based on the combined segment gross and operating margins. Operating expenses associated with the NSE business are not allocated to the individual segments within NSE, as they are managed centrally at the business unit level. The CODM evaluates segment performance of the OSP business based on segment operating margin. The Company allocates corporate-level operating expenses to its segment results, except for certain non-core operating and non-operating activities as discussed below.
The Company does not allocate stock-based compensation, acquisition-related charges, amortization of intangibles, restructuring and related charges, impairment of goodwill, non-operating income and expenses, changes in fair value of contingent consideration liabilities, or other charges unrelated to core operating performance to its segments because management does not include this information in its measurement of the performance of the operating segments. These items are presented as “Other Items” in the table below. Additionally, the Company does not specifically identify and allocate all assets by operating segment.
Information on the Company’s reportable segments is as follows (in millions):
Year Ended July 3, 2021
Network and Service Enablement
 Network EnablementService EnablementNetwork and
Service
Enablement		Optical Security and Performance ProductsOther ItemsConsolidated GAAP Measures
Product revenue$650.5 $40.6 $691.1 $360.3 $— $1,051.4 
Service revenue96.1 50.7 146.8 0.7 — 147.5 
Net revenue$746.6 $91.3 $837.9 $361.0 $— $1,198.9 
Gross profit474.2 59.9 534.1 218.1 (37.8)714.4 
Gross margin63.5 %65.6 %63.7 %60.4 %59.6 %
Operating income92.2 161.3 (111.3)142.2 
Operating margin11.0 %44.7 %11.9 %
Year Ended June 27, 2020
Network and Service Enablement
Network EnablementService EnablementNetwork and
Service
Enablement		Optical Security and Performance ProductsOther Items Consolidated GAAP Measures
Product revenue$669.1 $49.9 $719.0 $286.2 $— $1,005.2 
Service revenue77.6 52.8 130.4 0.7 — 131.1 
Net revenue$746.7 $102.7 $849.4 $286.9 $— $1,136.3 
Gross profit482.4 68.8 551.2 153.0 (38.9)665.3 
Gross margin64.6 %67.0 %64.9 %53.3 %58.5 %
Operating income 108.8 102.1 (92.8)118.1 
Operating margin12.8 %35.6 %10.4 %
Year Ended June 29, 2019
Network and Service Enablement
 Network EnablementService EnablementNetwork and
Service
Enablement		Optical Security and Performance ProductsOther ItemsConsolidated GAAP Measures
Product revenue$666.2 $49.7 $715.9 $288.3 $— $1,004.2 
Service revenue71.6 53.7 125.3 0.8 — 126.1 
Net revenue$737.8 $103.4 $841.2 $289.1 $— $1,130.3 
Gross profit473.3 71.0 544.3 145.8 (38.7)651.4 
Gross margin64.2 %68.7 %64.7 %50.4 %57.6 %
Operating income 99.6 98.0 (130.2)67.4 
Operating margin11.8 %33.9 %6.0 %
Years Ended
 July 3, 2021June 27, 2020June 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 charges1.6 (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 Company operates primarily in three geographic regions: Americas, Asia-Pacific, and Europe, Middle East and Africa (EMEA). Net revenue is assigned to the geographic region and country where the Company’s product is initially shipped. For example, certain customers may request shipment of product to a contract manufacturer in one country, which may differ from the location of their end customers. 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, 2021June 27, 2020June 29, 2019
Product RevenueService RevenueTotalProduct RevenueService RevenueTotalProduct RevenueService RevenueTotal
Americas:
United States$275.8 $54.2 $330.0 $288.3 $53.3 $341.6 $287.1 $55.0 $342.1 
Other Americas72.7 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 Asia118.5 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 EMEA242.4 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, 2021June 27, 2020June 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, 2021June 27, 2020
United States$109.4 $85.0 
Other Americas2.0 1.6 
China45.4 43.8 
Other Asia-Pacific5.4 5.8 
United Kingdom27.3 30.1 
Other EMEA6.5 6.2 
Total property, plant and equipment, net$196.0 $172.5