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v3.23.2

Operating Segments and Geographic Information (Tables) | 12 Months Ended
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Jul. 01, 2023
Segment Reporting [Abstract] |
Schedule of Information on Reportable Segments | Information on the Company’s reportable segments is as follows (in millions):
| Year Ended July 1, 2023
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 583.9 |  |  | $ | 47.4 |  |  | $ | 631.3 |  |  | $ | 304.8 |  |  |  |  | $ | — |  |  | $ | 936.1 |
Service revenue | 113.6 |  |  | 56.3 |  |  | 169.9 |  |  | 0.1 |  |  |  |  | — |  |  | 170.0 |
Net revenue | $ | 697.5 |  |  | $ | 103.7 |  |  | $ | 801.2 |  |  | $ | 304.9 |  |  |  |  | $ | — |  |  | $ | 1,106.1 |
Gross profit | 440.1 |  |  | 70.1 |  |  | 510.2 |  |  | 158.6 |  |  |  |  | (30.0) |  |  | 638.8 |
Gross margin | 63.1 | % |  | 67.6 | % |  | 63.7 | % |  | 52.0 | % |  |  |  |  |  | 57.8 | %
Operating income |  |  |  |  | 61.2 |  |  | 111.3 |  |  |  |  | (90.1) |  |  | 82.4 |
Operating margin |  |  |  |  | 7.6 | % |  | 36.5 | % |  |  |  |  |  | 7.4 | %
| Year Ended July 2, 2022
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 739.7 |  |  | $ | 53.0 |  |  | $ | 792.7 |  |  | $ | 342.8 |  |  |  |  | $ | — |  |  | $ | 1,135.5 |
Service revenue | 106.1 |  |  | 50.3 |  |  | 156.4 |  |  | 0.5 |  |  |  |  | — |  |  | 156.9 |
Net revenue | $ | 845.8 |  |  | $ | 103.3 |  |  | $ | 949.1 |  |  | $ | 343.3 |  |  |  |  | $ | — |  |  | $ | 1,292.4 |
Gross profit | 543.6 |  |  | 71.5 |  |  | 615.1 |  |  | 193.6 |  |  |  |  | (35.2) |  |  | 773.5 |
Gross margin | 64.3 | % |  | 69.2 | % |  | 64.8 | % |  | 56.4 | % |  |  |  |  |  | 59.8 | %
Operating income |  |  |  |  | 147.8 |  |  | 139.0 |  |  |  |  | (101.8) |  |  | 185.0 |
Operating margin |  |  |  |  | 15.6 | % |  | 40.5 | % |  |  |  |  |  | 14.3 | %
| 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 | %
| Years Ended
| July 1, 2023 |  | July 2, 2022 |  | July 3, 2021
Corporate reconciling items impacting gross profit: |  |  |  |  |
Total segment gross profit | $ | 668.8 |  |  | $ | 808.7 |  |  | $ | 752.2 |
Stock-based compensation | (4.8) |  |  | (5.2) |  |  | (4.8) |
Amortization of intangibles | (24.6) |  |  | (30.0) |  |  | (33.2) |
Other (charges) benefits unrelated to core operating performance(1) | (0.6) |  |  | — |  |  | 0.2 |
GAAP gross profit | $ | 638.8 |  |  | $ | 773.5 |  |  | $ | 714.4 |
Corporate reconciling items impacting operating income: |  |  |  |  |
Total segment operating income | $ | 172.5 |  |  | $ | 286.8 |  |  | $ | 253.5 |
Stock-based compensation | (51.2) |  |  | (52.3) |  |  | (48.3) |
Amortization of intangibles | (33.3) |  |  | (39.7) |  |  | (66.5) |
Change in fair value of contingent liability | 4.5 |  |  | (0.3) |  |  | 5.3 |
Other benefits (charges) unrelated to core operating performance(1) | 2.0 |  |  | (9.6) |  |  | (3.4) |
Restructuring and related (charges) benefits | (12.1) |  |  | 0.1 |  |  | 1.6 |
GAAP operating income from continuing operations | $ | 82.4 |  |  | $ | 185.0 |  |  | $ | 142.2 |
(1) During the years ended July 1, 2023, July 2, 2022, and July 3, 2021 other benefits (charges) unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, accretion of debt discount, intangible impairment and loss on disposal of long-lived assets. 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 1, 2023 |  | July 2, 2022 |  | July 3, 2021
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 303.5 |  |  | $ | 59.4 |  |  | $ | 362.9 |  |  | $ | 332.5 |  |  | $ | 56.4 |  |  | $ | 388.9 |  |  | $ | 275.8 |  |  | $ | 54.2 |  |  | $ | 330.0 |
Other Americas | 60.3 |  |  | 14.9 |  |  | 75.2 |  |  | 82.2 |  |  | 14.6 |  |  | 96.8 |  |  | 72.7 |  |  | 12.9 |  |  | 85.6 |
Total Americas | $ | 363.8 |  |  | $ | 74.3 |  |  | $ | 438.1 |  |  | $ | 414.7 |  |  | $ | 71.0 |  |  | $ | 485.7 |  |  | $ | 348.5 |  |  | $ | 67.1 |  |  | $ | 415.6 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 203.5 |  |  | $ | 7.4 |  |  | $ | 210.9 |  |  | $ | 247.5 |  |  | $ | 8.9 |  |  | $ | 256.4 |  |  | $ | 265.8 |  |  | $ | 11.2 |  |  | $ | 277.0 |
Other Asia | 140.2 |  |  | 26.4 |  |  | 166.6 |  |  | 185.2 |  |  | 20.1 |  |  | 205.3 |  |  | 118.5 |  |  | 15.0 |  |  | 133.5 |
Total Asia-Pacific | $ | 343.7 |  |  | $ | 33.8 |  |  | $ | 377.5 |  |  | $ | 432.7 |  |  | $ | 29.0 |  |  | $ | 461.7 |  |  | $ | 384.3 |  |  | $ | 26.2 |  |  | $ | 410.5 |
EMEA: | $ | 228.6 |  |  | $ | 61.9 |  |  | $ | 290.5 |  |  | $ | 288.1 |  |  | $ | 56.9 |  |  | $ | 345.0 |  |  | $ | 318.6 |  |  | $ | 54.2 |  |  | $ | 372.8 |
Total net revenue | $ | 936.1 |  |  | $ | 170.0 |  |  | $ | 1,106.1 |  |  | $ | 1,135.5 |  |  | $ | 156.9 |  |  | $ | 1,292.4 |  |  | $ | 1,051.4 |  |  | $ | 147.5 |  |  | $ | 1,198.9 |
SICPA Holding SA Company (SICPA), a customer of the Company’s OSP segment, generated more than 10% of VIAVI net revenue from continuing operations during fiscal 2023, 2022 and 2021 as summarized below (in millions):
| Years Ended
| July 1, 2023 |  | July 2, 2022 |  | July 3, 2021
SICPA - OSP customer | $ | 157.7 |  |  | $ | 178.4 |  |  | $ | 193.9 |
Property, plant and equipment, net was identified based on the operations in the corresponding geographic areas (in millions):
| Years Ended
| July 1, 2023 |  | July 2, 2022
United States | $ | 166.9 |  |  | $ | 148.3 |
Other Americas | 1.3 |  |  | 1.8 |
China | 33.6 |  |  | 39.7 |
Other Asia-Pacific | 4.0 |  |  | 4.5 |
United Kingdom | 24.6 |  |  | 25.7 |
Other EMEA | 12.6 |  |  | 8.9 |
Total property, plant and equipment, net | $ | 243.0 |  |  | $ | 228.9 |

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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 -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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