Goodwill

12 Months Ended

Jun. 29, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Note 9. Goodwill

Changes in the carry value of goodwill allocated segment are as follows (in millions):

	Network Enablement			Service Enablement		Optical Security and Performance Products		Total
Balance as of July 1, 2017 (1)	$	143.3		$	—	$	8.3	$	151.6
Acquisitions (2)	190.1			—		—		190.1
Currency translation and other adjustments	(5.4		)	—		—		(5.4		)
Balance as of June 30, 2018 (3)	$	328.0		$	—	$	8.3	$	336.3
Acquisitions (2)	12.2			—		33.9		46.1
Other	3.7			—		—		3.7
Currency translation and other adjustments	(5.0		)	—		—		$	(5.0	)
Balance as of June 29, 2019 (4)	$	338.9		$	—	$	42.2	$	381.1

(1) Gross goodwill balances for NE, SE and OSP were $445.2 million, $272.6 million and $92.8 million, respectively as of July 1, 2017. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of July 1, 2017.

(2) See “Note 6. Acquisitions” of the Notes to Consolidated Financial Statement for additional information related to the Company’s acquisitions.

(3) Gross goodwill balances for NE, SE and OSP were $629.9 million, $272.6 million and $92.8 million, respectively as of June 30, 2018. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of June 30, 2018.

(4) Gross goodwill balances for NE, SE and OSP were $640.8 million, $272.6 million and $126.7 million, respectively as of June 29, 2019. Accumulated impairment for NE, SE and OSP was $301.9 million, $272.6 million and $84.5 million, respectively as of June 29, 2019.

The following table presents gross goodwill and aggregate impairment balances for the fiscal years ended June 29, 2019, and June 30, 2018, (in millions):

	Year Ended
	June 29, 2019			June 30, 2018
Gross goodwill balance	$	1,040.1		$	995.3
Accumulated impairment losses	(659.0		)	(659.0		)
Net goodwill balance	$	381.1		$	336.3

Impairment of Goodwill

The Company tests goodwill at the reporting unit level for impairment annually, during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that the asset may be impaired. The Company determined that, based on its organizational structure and the financial information that is provided to and reviewed by management during fiscal 2019 and 2018, its reporting units were NE, SE and OSP.

Fiscal 2019

For fiscal 2019, the Company reviewed goodwill under the qualitative assessment of the authoritative guidance for impairment testing and concluded that it was more likely than not that the fair value of each reporting unit exceeded its carrying amount. Accordingly, there was no indication of impairment.

Fiscal 2018

For fiscal 2018, the Company reviewed goodwill under the qualitative assessment of the authoritative guidance for impairment testing and concluded that it was more likely than not that the fair value of each reporting unit exceeded its carrying amount. Accordingly, there was no indication of impairment.

Fiscal 2017

For fiscal 2017 the Company performed the quantitative goodwill impairment test in accordance with the authoritative guidance for impairment test of the NE reporting unit. Based on the quantitative analysis, the Company determined that the fair value of NE is above its carrying amount. The Company reviewed goodwill of the OSP reporting unit under the qualitative assessment of the authoritative guidance for impairment testing and concluded that it was more likely than not that the fair value of OSP exceeded its carrying amount. Accordingly, there was no indication of impairment.