XML 59 R45.htm IDEA: XBRL DOCUMENT v3.5.0.2
Operating Segments and Geographic Information (Tables)
12 Months Ended
Jul. 02, 2016
Segment Reporting [Abstract]  
Schedule of information on reportable segments
Following the separation from Lumentum, one customer served by our OSP segment and one customer served by our NE and SE segments generated more than 10% of Viavi net revenue from continuing operations during fiscal 2016, 2015 and 2014 as summarized below (in millions):
 
Years Ended
 
July 2, 2016
 
June 27, 2015
 
June 28, 2014
Customer A - OSP Customer
$
190.1

 
$
143.0

 
$
118.2

Customer B - NE and SE Customer
*

 
*

 
106.6

*Customer represented less than 10% of consolidated net revenue in the specified fiscal year.
Property, plant and equipment, net were identified based on the operations in the corresponding geographic areas (in millions):
 
Years Ended
 
July 2, 2016
 
June 27, 2015
United States
$
85.6

 
$
91.8

Other Americas
4.3

 
5.8

China
27.3

 
32.1

Other Asia-Pacific
4.8

 
6.9

Germany
7.9

 
8.5

Other EMEA
3.1

 
4.1

Total property, plant and equipment, net
$
133.0

 
$
149.2

The following table presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue (dollars in millions):
 
Years Ended
 
July 2, 2016
 
June 27, 2015
 
June 28, 2014
Americas:
 
 
 
 
 
 
 
 
 
 
 
United States
$
396.6

 
43.8
%
 
$
424.3

 
48.5
%
 
$
448.6

 
48.4
%
Other Americas
66.0

 
7.3
%
 
$
62.5

 
7.2
%
 
$
58.8

 
6.3
%
Total Americas
$
462.6

 
51.1
%
 
$
486.8

 
55.7
%
 
$
507.4

 
54.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Asia-Pacific
$
166.3

 
18.3
%
 
$
144.5

 
16.5
%
 
$
140.9

 
15.2
%
 
 
 
 
 
 
 
 
 
 
 
 
EMEA:
 
 
 
 
 
 
 
 
 
 
 
Switzerland
$
135.6

 
15.0
%
 
$
97.7

 
11.2
%
 
$
98.0

 
10.6
%
Other EMEA
141.8

 
15.6
%
 
144.9

 
16.6
%
 
180.6

 
19.5
%
Total EMEA
$
277.4

 
30.6
%
 
$
242.6

 
27.8
%
 
$
278.6

 
30.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
$
906.3

 
100.0
%
 
$
873.9

 
100.0
%
 
$
926.9

 
100.0
%
The segment information for all periods presented has been revised to be comparable with the changes in the Company’s segment reporting measures.
Information on reportable segments is as follows (in millions):
 
Year Ended July 2, 2016
 
Network and Service Enablement
 
 
 
 
 
 
 
 
 
 
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Reconciling Items
 
Consolidated GAAP Measures
Net revenue
$
504.6

 
$
153.6

 
$
658.2

 
$
248.1

 
$
906.3

 
$

 
$
906.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
329.7

 
99.4

 
429.1

 
143.1

 
572.2

 
(22.5
)
 
549.7

Gross margin
65.3
%
 
64.7
%
 
65.2
%
 
57.7
%
 
63.1
%
 
 
 
60.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating (loss) income
 
 
 
 
12.7

 
102.9

 
115.6

 
(199.9
)
 
(84.3
)
Operating margin
 
 
 
 
1.9
%
 
41.5
%
 
12.8
%
 
 
 
(9.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended June 27, 2015
 
Network and Service Enablement
 
 
 
 
 
 
 
 
 
 
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Reconciling Items
 
Consolidated GAAP Measures
Net revenue
$
506.8

 
$
174.3

 
$
681.1

 
$
192.8

 
$
873.9

 
$

 
$
873.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
333.9

 
119.2

 
453.1

 
104.3

 
557.4

 
(37.3
)
 
520.1

Gross margin
65.9
%
 
68.4
%
 
66.5
%
 
54.1
%
 
63.8
%
 
 
 
59.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
(0.1
)
 
68.1

 
68.0

 
(143.8
)
 
(75.8
)
Operating margin
 
 
 
 
%
 
35.3
%
 
7.8
%
 
 
 
(8.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended June 28, 2014
 
Network and Service Enablement
 
 
 
 
 
 
 
 
 
 
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Reconciling Items
 
Consolidated GAAP Measures
Net revenue
$
570.1

 
$
156.0

 
$
726.1

 
$
200.8

 
$
926.9

 
$

 
$
926.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
371.0

 
95.4

 
466.4

 
100.7

 
567.1

 
(39.3
)
 
527.8

Gross margin
65.1
%
 
61.2
%
 
64.2
%
 
50.1
%
 
61.2
%
 
 
 
56.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
(0.2
)
 
63.8

 
63.6

 
(119.2
)
 
(55.6
)
Operating margin
 
 
 
 
%
 
31.8
%
 
6.9
%
 
 
 
(6.0
)%

 
Years Ended
 
July 2, 2016
 
June 27, 2015
 
June 28, 2014
Corporate reconciling items impacting gross profit:
 
 
 
 
 
Total segment gross profit
$
572.2

 
$
557.4

 
$
567.1

Stock-based compensation
(4.8
)
 
(4.2
)
 
(4.3
)
Amortization of intangibles
(17.3
)
 
(31.9
)
 
(34.1
)
Other charges unrelated to core operating performance
(0.4
)
 
(1.2
)
 
(0.9
)
GAAP gross profit
$
549.7

 
$
520.1

 
$
527.8

 
 
 
 
 
 
Corporate reconciling items impacting operating income (loss):
 
 
 
 
 
Total segment operating income
$
115.6

 
$
68.0

 
$
63.6

Stock-based compensation
(42.4
)
 
(47.5
)
 
(44.7
)
Amortization of intangibles
(31.9
)
 
(51.4
)
 
(49.6
)
Impairment of goodwill
(91.4
)
 

 

Other charges unrelated to core operating performance (1)(2)
(23.7
)
 
(18.1
)
 
(3.6
)
Restructuring and related charges
(10.5
)
 
(26.8
)
 
(21.3
)
GAAP operating income (loss) from continuing operations
$
(84.3
)
 
$
(75.8
)
 
$
(55.6
)


(1)
During the year ended July 2, 2016 other charges unrelated to core operating performance primarily consisted of (a) an $8.4 million charge related to a litigation ruling impacting our U.K. pension obligation, (b) $5.0 million of Viavi-specific charges related to the Separation and (c) $3.5 million of non-recurring incremental severance and related costs upon the exit of a key executive.
(2)
During the year ended June 27, 2015, other charges unrelated to core operating performance primarily consisted of $9.8 million of Viavi-specific charges related to the Separation and $3.6 million IPR&D impairment charge for an ongoing project related to the fiscal 2014 acquisition of Trendium as discussed in “Note 10. Acquired Developed Technology and Other Intangibles.”