Note 17. Quarterly Financial Information (unaudited)

The following table presents our quarterly consolidated statements of operations for fiscal 2016 and 2015 (in millions, except per share data):



	July 2, 2016 ⁽³⁾		April 2, 2016 ⁽³⁾		December 26, 2015 ⁽³⁾		September 26, 2015 ⁽³⁾		June 27, 2015		March 28, 2015		December 27, 2014		September 27, 2014
Net revenue	241.7		230.4		218.3		212.6		208.9		198.7		210.5		219.0
Cost of sales	160.5		165.9		148.5		144.0		143.4		139.7		141.7		146.8
Amortization of acquired technologies	1.7		1.7		1.7		1.7		1.9		1.9		1.9		1.9
Gross profit	79.5		62.8		68.1		66.9		63.6		57.1		66.9		70.3
Operating expenses:
Research and development	36.4		35.3		35.0		34.4		35.7		35.0		35.1		35.0
Selling, general and administrative	29.5		28.0		25.8		34.0		37.6		31.8		31.2		28.3
Restructuring and related charges	3.5		1.8		1.1		1.0		4.9		1.1		3.8		1.8
Total operating expenses	69.4		65.1		61.9		69.4		78.2		67.9		70.1		65.1
Income (Loss) from operations	10.1		(2.3	)	6.2		(2.5	)	(14.6	)	(10.8	)	(3.2	)	5.2
Unrealized (gain) loss on derivative liabilities	4.4		(4.8	)	(2.4	)	2.2		—		—		—		—
Interest and other income (expense), net	(0.1	)	(0.4	)	(0.5	)	(0.2	)	(0.3	)	(0.4	)	(0.1	)	(0.3	)
Income (loss) before income taxes	14.4		(7.5	)	3.3		(0.5	)	(14.9	)	(11.2	)	(3.3	)	4.9
(Benefit from) provisions for income taxes ⁽²⁾	0.1		0.1		0.5		(0.3	)	0.9		(23.4	)	0.8		0.6
Net income (loss)	14.3		(7.6	)	2.8		(0.2	)	(15.8	)	12.2		(4.1	)	4.3
Net income (loss) attributable to common stockholders
Net income (loss) per share attributable to common stockholders⁽¹⁾
Basic	0.24		(0.13	)	0.05		—		(0.27	)	0.21		(0.07	)	0.07
Diluted	0.23		(0.13	)	0.05		—		(0.27	)	0.21		(0.07	)	0.07
Shares used in per share calculation attributable to common stockholders: ⁽¹⁾
Basic	59.4		59.2		59.0		58.8		58.8		58.8		58.8		58.8
Diluted	61.8		59.2		59.2		58.8		58.8		58.8		58.8		58.8

(1)

On August 1, 2015, JDSU distributed 47.1 million shares, or 80.1% of the outstanding shares of Lumentum common stock to existing holders of JDSU common stock. JDSU was renamed Viavi and at the time of the distribution, retained 11.7 million shares, or 19.9% of Lumentum's outstanding shares. Basic and diluted net income (loss) income per share for all periods through June 27, 2015 is calculated using the shares of Lumentum common stock outstanding on August 1, 2015. Refer to "Note 4. Earnings Per Share" in the Notes to Consolidated Financial Statements.


(2)	During the third quarter of fiscal 2015, we recognized a $21.8 million tax benefit upon the settlement of an audit in a non-US jurisdiction.

(3)

During the three months ended July 2, 2016 we corrected an error relating to the understatement of the restructuring expense of $0.2 million, $0.2 million and $0.4 million for the three months ended September 26, 2015, December 26, 2015 and April 2, 2016, respectively, resulting in the overstatement of restructuring expense of $0.8 million for the three months ended July 2, 2016. During the three months ended April 2, 2016, we corrected an error relating to stock-based compensation expense for the three months ended December 26, 2015 in which stock-based compensation expense of $1.0 million was excluded for a specific restricted stock grant, resulting in the overstatement of stock-based compensation expense of $1.0 million for the three months ended April 2, 2016. Additionally during the three months ended April 2, 2016, we corrected an error relating to the overstatement of sales and use tax expense of $0.2 million and $0.3 million for the three months ended September 26, 2015 and December 26, 2015, respectively, resulting in the understatement of sales and use tax expense of $0.5 million for the three months ended April 2, 2016. During the three months ended December 26, 2015, we corrected an error relating to the determination of the accretion amount of Series A preferred stock for the three months ended September 26, 2015 in which the accretion of the discount related to issuance cost of $2.0 million was excluded, resulting in the overstatement of the accretion of Series A preferred stock of $2.0 million for the three months ended December 25, 2015.

As a result, our net loss attributable to common stockholders and basic and diluted net loss per share attributable to common stockholders included in our quarterly report on Form 10-Q ("Form 10-Q") for the three months ended September 26, 2015 was understated by $2.0 million and $0.03 per basic and diluted share, respectively. Our net income attributable to common stockholders and basic and diluted net income per share attributable to common stockholders included in Form 10-Q for the three months ended December 26, 2015 was understated by $0.9 million and $0.02 per basic and diluted share, respectively. Our net loss attributable to common stockholders included in Form 10-Q for the three months ended April 2, 2016 was understated by $0.1 million, there was no impact to earnings per share, both basic and diluted. Our net income attributable to common stockholders and basic and diluted net loss per share attributable to common stockholders for the three months ended July 2, 2016 was overstated by $0.8 million and $0.01 per basic and diluted share, respectively.

We assessed the materiality of these errors and determined that the above errors were not material to our unaudited consolidated financial statements as of each of the periods mentioned above.