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Balance Sheet Details
 12 Months Ended
Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Details
Note 7. Balance Sheet Details
Allowance for current expected credit losses
We did not have any allowance for credit losses other than our allowance for uncollectible accounts receivable. As of June 29, 2024 and July 1, 2023, the allowance for credit losses on our trade receivables were $0.2 million and less than $0.1 million, respectively.
Inventories
The components of inventories were as follows (in millions):
June 29, 2024July 1, 2023
Raw materials and purchased parts$196.9 $170.5 
Work in process101.6 103.2 
Finished goods99.9 134.9 
Inventories$398.4 $408.6 
In connection with the Cloud Light Acquisition, we recorded $71.8 million of inventory as of the Cloud Light Closing date. During the year ended June 29, 2024, we amortized and recognized as cost of sales in our consolidated statements of operations the entire $8.0 million of fair value step-up of inventory acquired from Cloud Light.
In connection with the NeoPhotonics acquisition, we recorded $84.3 million of inventory as of the Cloud Light Closing date. During the year ended July 1, 2023, we amortized and recognized as cost of sales in our consolidated statements of operations the entire $17.8 million of fair value step-up of inventory acquired from NeoPhotonics.
Property, plant and equipment, net
The components of property, plant and equipment, net were as follows (in millions):
June 29, 2024July 1, 2023
Land$75.2 $63.5 
Buildings and improvement215.1 170.3 
Machinery and equipment772.1 657.9 
Computer equipment and software44.9 41.4 
Furniture and fixtures14.3 10.2 
Leasehold improvements47.5 49.6 
Construction in progress71.1 69.2 
1,240.2 1,062.1 
Less: Accumulated depreciation(667.7)(572.6)
Property, plant and equipment, net$572.5 $489.5 
Our construction in progress primarily includes machinery and equipment that we expect to place in service in the next 12 months.
In connection with the Cloud Light acquisition, we assumed $62.5 million of property, plant and equipment as of the Cloud Light Closing date.
In August 2023, we purchased land and buildings that we previously leased in the United Kingdom for a total purchase price of $23.3 million. Additionally, we capitalized $1.8 million of incremental direct costs for fees paid to third parties. We also recorded a $0.3 million reduction in the carrying value of buildings purchased related to the termination of leases for the purchased buildings. The total carrying value of assets purchased is $24.8 million at the purchase date, of which $11.8 million was allocated to the land and $13.0 million to the buildings.
During fiscal 2024, 2023 and 2022, we recorded depreciation expense of $110.6 million, $106.6 million, and $81.6 million, respectively.
Operating lease right-of-use assets, net
Operating lease right-of-use assets, net were as follows (in millions):
June 29, 2024July 1, 2023
Operating lease right-of-use assets$112.3 $116.5 
Less: accumulated amortization(39.5)(39.2)
Operating lease right-of-use assets, net$72.8 $77.3 
In connection with the Cloud Light acquisition, we acquired $3.7 million of right-of-use assets related to leases of real estate properties used as our manufacturing and office premises. We accounted for these leases as operating leases and have the remaining lease term ranging from 1.5 to 2.6 years at the Cloud Light Closing date.
In connection with the purchase of land and buildings in the United Kingdom in August 2023, we terminated our leases for the purchased buildings and recorded a $0.3 million of reduction in the carrying value of buildings purchased, as a result of derecognizing $4.8 million of net operating lease right-of-use asset, $2.4 million of operating lease liabilities, current, and $2.7 million of operating lease liabilities, non-current.
Other current liabilities
The components of other current liabilities were as follows (in millions):
June 29, 2024July 1, 2023
Restructuring and related accrual (1)
$11.1 $5.0 
Warranty reserve (2)
13.2 6.8 
Deferred revenue and customer deposits0.6 2.1 
Income tax payable (3)
13.2 28.0 
Other current liabilities 3.0 5.9 
Other current liabilities
$41.1 $47.8 
(1) Refer to “Note 12. Restructuring and Related Charges.”
(2) Refer to “Note 16. Commitments and Contingencies.”
(3) Refer to “Note 13. Income Taxes.”
Other non-current liabilities
The components of other non-current liabilities were as follows (in millions):
June 29, 2024July 1, 2023
Asset retirement obligation$7.5 $8.2 
Pension and related accrual (1)
7.5 9.6 
Unrecognized tax benefit83.0 64.4 
Other non-current liabilities 5.4 9.2 
Other non-current liabilities
$103.4 $91.4 
(1) We have defined benefit pension plans in Japan, Switzerland, and Thailand. Pension and related accrual of $7.5 million as of June 29, 2024 relates to $8.6 million of non-current portion of benefit obligation, offset by $1.2 million of funding for the pension plan in Switzerland. Pension and related accrual of $9.6 million as of July 1, 2023 relates to $10.2 million of non-current portion of benefit obligation, offset by $0.6 million of funding for the pension plan in Switzerland. We typically re-evaluate the assumptions related to the fair value of our defined benefit obligations annually in the fiscal fourth quarter and make any updates as necessary. Refer to “Note 15. Employee Retirement Plans”.