XML 31 R18.htm IDEA: XBRL DOCUMENT
v3.23.2

Goodwill | 12 Months Ended
--- | ---
Jul. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill | Note 9. Goodwill Changes in the carry value of goodwill allocated segment are as follows (in millions):
| Network Enablement |  | Service Enablement |  | Optical Security and Performance Products |  | Total
Balance as of July 3, 2021(1) | $ | 349.7 |  |  | $ | 4.6 |  |  | $ | 42.2 |  |  | $ | 396.5 |
Acquisitions(2) | — |  |  | 10.0 |  |  | — |  |  | 10.0 |
Currency translation and other adjustments | (18.1) |  |  | (0.8) |  |  | — |  |  | (18.9) |
Balance as of July 2, 2022(3) | $ | 331.6 |  |  | $ | 13.8 |  |  | $ | 42.2 |  |  | $ | 387.6 |
Acquisitions(2) | 60.0 |  |  | — |  |  | — |  |  | 60.0 |
Measurement period adjustment (2) | (0.5) |  |  | — |  |  | — |  |  | (0.5) |
Currency translation adjustments | 6.9 |  |  | 1.2 |  |  | — |  |  | 8.1 |
Balance as of July 1, 2023(4) | $ | 398.0 |  |  | $ | 15.0 |  |  | $ | 42.2 |  |  | $ | 455.2 |
(1) Gross goodwill balances for NE, SE and OSP were $651.6 million, $277.2 million and $126.7 million, respectively as of July 3, 2021. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of July 3, 2021. (2) See “Note 5. Acquisitions” of the Notes to Consolidated Financial Statement for additional information related to the Company’s acquisitions. (3) Gross goodwill balances for NE, SE and OSP were $633.5 million, $286.4 million and $126.7 million, respectively as of July 2, 2022. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of July 2, 2022. (4) Gross goodwill balances for NE, SE and OSP were $699.9 million, $287.6 million and $126.7 million, respectively as of July 1, 2023. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of July 1, 2023. Impairment of Goodwill The Company tests goodwill at the reporting unit level for impairment annually, during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that the asset may be impaired. The Company determined that, based on its organizational structure and the financial information that is provided to and reviewed by the Company’s Chief Operating Decision Maker (CODM) during fiscal 2023, 2022 and 2021 that its reporting units were NE, SE and OSP. As part of the annual impairment test, the Company performed a quantitative assessment of goodwill impairment for all reporting units. For the quantitative analysis, the Company compares the fair value of a reporting unit to its carrying value. If the estimated fair value exceeds book value, goodwill is considered not to be impaired. However, if the fair value of the reporting unit is less than book value, then goodwill will be impaired by the amount that the carrying amount exceeds the fair value, not to exceed the carrying amount of the goodwill. To estimate the fair value of each reporting unit, we applied a combination of the income approach and the market approach. The income approach used discounted future cash flows in which sales, operating income and cash flow projections were based on assumptions driven by current economic conditions. The market approach utilized the Guideline Public Company Method and Guideline Transaction Method to derive fair value. The Guideline Public Company Method determines the fair value of an entity based upon trading multiples calculated using market value of minority interests in publicly-traded companies that are similar to the subject company. The Guideline Transaction Method calculates the fair value of an entity by analyzing recent sales of comparable entities. Based on our testing during the fourth quarter of fiscal 2023, the fair value of each of the Company’s reporting units was at least two times the carrying value, and therefore no impairment was identified. In addition, no indications of impairment were identified under the qualitative tests performed for fiscal years ending on July 2, 2022 and July 3, 2021.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 24 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482548/350-20-55-24 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350-20/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-2 + Details
Name: | us-gaap_GoodwillDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration