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Operating Segments and Geographic Information (Tables)

6 Months Ended

Jan. 02, 2021

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 January 2, 2021 and December 28, 2019 (in millions):

			Three Months Ended January 2, 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			$	156.4					$	12.9					$	169.3					$	92.8											$	—					$	262.1
Service revenue			24.5						12.9						37.4						0.4												—						37.8
Net revenue			$	180.9					$	25.8					$	206.7					$	93.2											$	—					$	299.9
Gross profit			$	113.3					$	17.6					$	130.9					$	58.4											$	(9.2)					$	180.1
Gross margin			62.6		%				68.2		%				63.3		%				62.7		%																60.1		%
Operating income															$	22.2					$	44.6											$	(24.5)					$	42.3
Operating margin															10.7		%				47.9		%																14.1		%

			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
			January 2, 2021						December 28, 2019
Corporate reconciling items impacting gross profit:
Total segment gross profit			$	189.3					$	199.2
Stock-based compensation			(1.2)						(1.0)
Amortization of intangibles			(8.4)						(8.4)
Other charges (benefits) unrelated to core operating performance (1)			0.4						(0.3)
GAAP gross profit			$	180.1					$	189.5
Corporate reconciling items impacting operating income:
Total segment operating income			$	66.8					$	67.9
Stock-based compensation			(9.9)						(11.3)
Amortization of intangibles			(16.5)						(17.2)
Change in fair value of contingent liability			1.5						6.0
Other charges unrelated to core operating performance (1)			0.6						(1.3)
Restructuring and related (benefits) charges			(0.2)						0.9
GAAP operating income from continuing operations			$	42.3					$	45.0

(1)    During the three months ended January 2, 2021 and December 28, 2019, other charges unrelated to core operating performance primarily consisted of certain acquisition and integration related changes, transformational initiatives such as, site consolidations, and reorganization, and loss on disposal of long-lived assets.

			Six Months Ended January 2, 2021
			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			$	295.6					$	20.6					$	316.2					$	193.8											$	—					$	510.0
Service revenue			47.4						26.6						74.0						0.6												—						74.6
Net revenue			$	343.0					$	47.2					$	390.2					$	194.4											$	—					$	584.6
Gross profit			$	216.8					$	31.9					$	248.7					$	119.4											$	(18.6)					$	349.5
Gross margin			63.2		%				67.6		%				63.7		%				61.4		%																59.8		%
Operating income															$	35.5					$	91.9											$	(53.8)					$	73.6
Operating margin															9.1		%				47.3		%																12.6		%

			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
			January 2, 2021						December 28, 2019
Corporate reconciling items impacting gross profit:
Total segment gross profit			$	368.1					$	383.1
Stock-based compensation			(2.4)						(2.0)
Amortization of intangibles			(16.6)						(16.8)
Other charges (benefits) unrelated to core operating performance (1)			0.4						(0.4)
GAAP gross profit			$	349.5					$	363.9
Corporate reconciling items impacting operating income:
Total segment operating income			$	127.4					$	120.6
Stock-based compensation			(22.4)						(21.6)
Amortization of intangibles			(33.2)						(34.3)
Change in fair value of contingent liability			1.5						4.3
Other charges unrelated to core operating performance (1)			(0.1)						(3.9)
Restructuring and related charges			0.4						0.6
GAAP operating income from continuing operations			$	73.6					$	65.7

(1)    During the six months ended January 2, 2021 and December 28, 2019, other charges unrelated to core operating performance primarily consisted of certain acquisition and integration related changes, transformational initiatives such as, site consolidations, and reorganization, and loss on disposal of long-lived assets.

Schedule of Revenue by Geographic Regions

The following tables present 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 January 2, 2021 and December 28, 2019 (in millions):

			Three Months Ended
			January 2, 2021																		December 28, 2019
			Product Revenue						Service Revenue						Total						Product Revenue						Service Revenue						Total
Americas:
United States			$	74.4					$	14.2					$	88.6					$	83.1					$	13.1					$	96.2
Other Americas			16.0						3.8						19.8						17.2						3.4						20.6
Total Americas			$	90.4					$	18.0					$	108.4					$	100.3					$	16.5					$	116.8
Asia-Pacific:
Greater China			$	69.9					$	3.3					$	73.2					$	78.4					$	2.1					$	80.5
Other Asia-Pacific			20.0						3.2						23.2						28.7						3.8						32.5
Total Asia-Pacific			$	89.9					$	6.5					$	96.4					$	107.1					$	5.9					$	113.0
EMEA:
Switzerland			$	19.8					$	0.1					$	19.9					$	13.4					$	0.1					$	13.5
Other EMEA			62.0						13.2						75.2						61.1						9.3						70.4
Total EMEA			$	81.8					$	13.3					$	95.1					$	74.5					$	9.4					$	83.9
Total net revenue			$	262.1					$	37.8					$	299.9					$	281.9					$	31.8					$	313.7

			Six Months Ended
			January 2, 2021																		December 28, 2019
			Product Revenue						Service Revenue						Total						Product Revenue						Service Revenue						Total
Americas:
United States			$	138.1					$	28.3					$	166.4					$	154.5					$	26.7					$	181.2
Other Americas			30.3						7.1						37.4						33.8						7.5						41.3
Total Americas			$	168.4					$	35.4					$	203.8					$	188.3					$	34.2					$	222.5
Asia-Pacific:
Greater China			$	147.2					$	5.0					$	152.2					$	148.9					$	3.5					$	152.4
Other Asia			45.4						7.0						52.4						60.0						7.8						67.8
Total Asia-Pacific			$	192.6					$	12.0					$	204.6					$	208.9					$	11.3					$	220.2
EMEA:
Switzerland			$	37.7					$	0.2					$	37.9					$	25.6					$	0.1					$	25.7
Other EMEA			111.3						27.0						138.3						123.9						21.2						145.1
Total EMEA			$	149.0					$	27.2					$	176.2					$	149.5					$	21.3					$	170.8
Total net revenue			$	510.0					$	74.6					$	584.6					$	546.7					$	66.8					$	613.5

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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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.

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