Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Apr. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

The following table presents the changes in goodwill by reportable segments during the nine months ended April 1, 2023 (in millions):

	Optical Communications		Commercial Lasers		Total
Balance as of July 2, 2022	$	363.5	$	5.4	$	368.9
Acquisition of NeoPhotonics (1)	316.4		—		316.4
Acquisition of IPG product lines (2)	10.9		—		10.9
Balance as of April 1, 2023	$	690.8	$	5.4	$	696.2

(1) We recorded $318.3 million of goodwill as of the acquisition date, and $2.0 million and $1.9 million of measurement period adjustments to goodwill during the three and nine months ended April 1, 2023, respectively.

(2) We recorded $6.5 million of goodwill as of the acquisition date, and $4.4 million and $4.4 million of measurement period adjustments to goodwill during the three and nine months ended April 1, 2023, respectively.

Schedule of Acquired Developed Technology and Other Intangibles

The intangible assets acquired from the acquisitions were as follows as of the acquisition date (in millions, except for weighted average amortization period):

	Preliminary fair value at the acquisition date						Weighted average amortization period (in years)
	NeoPhotonics		IPG product lines		Total acquired
Acquired developed technologies	$	220.0	$	8.6	$	228.6	5.2
Customer relationships	144.5		2.3		146.8		5.9
In-process research and development	48.0		29.1		77.1		n/a
Total intangible assets	$	412.5	$	40.0	$	452.5

The following tables present details of all of our intangibles, including those acquired in connection with our acquisitions in the first quarter of fiscal 2023, as of the periods presented (in millions, except for weighted average remaining amortization period):

April 1, 2023	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted average remaining amortization period (years)
Acquired developed technologies	$	642.2	$	(371.5)	$	270.7	4.4
Customer relationships	291.8		(106.4)		185.4		4.8
In-process research and development	42.3		—		42.3		n/a
Total intangible assets	$	976.3	$	(477.9)	$	498.4

July 2, 2022	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted average remaining amortization period (years)
Acquired developed technologies	$	390.3	$	(303.6)	$	86.7	2.5
Customer relationships	145.0		(76.0)		69.0		4.4
Total intangible assets	$	535.3	$	(379.6)	$	155.7

Schedule of Amortization Expense

The following table presents details of amortization for the periods presented (in millions):

	Three Months Ended				Nine Months Ended
	April 1, 2023		April 2, 2022		April 1, 2023		April 2, 2022
Cost of sales	$	18.7	$	15.6	$	66.4	$	47.3
Selling, general and administrative	11.3		5.8		31.9		17.0
Total amortization of intangibles	$	30.0	$	21.4	$	98.3	$	64.3

Schedule of Estimated Future Amortization Expense

Based on the carrying amount of our acquired developed technologies and customer relationships as of April 1, 2023, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):

Fiscal Years
Remainder of 2023	$	30.0
2024	114.3
2025	100.3
2026	87.9
2027	76.0
Thereafter	47.6
Total future amortization	$	456.1