Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Jun. 29, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

The following table presents our goodwill balance by the reportable segments as of June 29, 2024 and July 1, 2023 (in millions):

	Cloud & Networking		Industrial Tech		Total
Balance as of July 2, 2022	$	357.7	$	11.2	$	368.9
Acquisition of NeoPhotonics (1)	315.3		—		315.3
Acquisition of IPG telecom transmission product lines (2)	10.9		—		10.9
Balance as of July 1, 2023	$	683.9	$	11.2	$	695.1
Acquisition of Cloud Light (3)	360.7		—		360.7
Balances as of June 29, 2024	$	1,044.6	$	11.2	$	1,055.8

(1) We recorded $318.3 million of goodwill as of the acquisition date, and $3.0 million of measurement period adjustments to reduce goodwill during the year ended July 1, 2023.

(2) We recorded $6.5 million of goodwill as of the acquisition date, and $4.4 million of measurement period adjustments to increase goodwill during the year ended July 1, 2023.

(3) We recorded $359.5 million of goodwill as of the acquisition date and $1.2 million of measurement period adjustments to increase goodwill during the year ended June 29, 2024.

Schedule of Acquired Developed Technology and Other Intangibles

	Fair Value at the Acquisition Date		Weighted Average Amortization Period (Years)
Acquired developed technologies	$	170.0	7.0
Customer relationships	130.0		7.0
In-process research and development	16.0		n/a
Order backlog	14.0		1.0
Trade name and trademarks	3.0		1.2
Total intangible assets	$	333.0

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

	Fair value at the acquisition date						Weighted average amortization period (in years)
	NeoPhotonics		IPG telecom transmission 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 fiscal 2024 and fiscal 2023, as of the periods presented (in millions, except for weighted average remaining amortization period):

June 29, 2024	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted average remaining amortization period (years)
Acquired developed technologies	$	818.1	$	(473.0)	$	345.1	4.8
Customer relationships	419.8		(169.4)		250.4		4.9
In-process research and development	15.5		—		15.5		n/a
Order backlog	14.0		(8.9)		5.1		0.4
Trade name and trademarks	3.0		(1.6)		1.4		0.6
Total intangible assets	$	1,270.4	$	(652.9)	$	617.5

July 1, 2023	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Weighted average remaining amortization period (years)
Acquired developed technologies	$	630.9	$	(385.5)	$	245.4	4.2
Customer relationships	289.7		(116.8)		172.9		3.7
In-process research and development	40.9		—		40.9		n/a
Total intangible assets	$	961.5	$	(502.3)	$	459.2

Schedule of Amortization Expense

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

	Years ended
	June 29, 2024		July 1, 2023		July 2, 2022
Cost of sales	$	83.9	$	84.4	$	62.9
Selling, general and administrative	65.2		43.3		22.6
Research and development	1.5		—		—
Total amortization of intangibles	$	150.6	$	127.7	$	85.5

Schedule of Estimated Future Amortization Expense

Based on the carrying amount of our intangible assets as of June 29, 2024, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):

Fiscal Years
2025	$	149.4
2026	133.3
2027	121.0
2028	81.5
2029	51.8
Thereafter	65.0
Total	$	602.0

The table above excludes in-process research and development intangible assets.