Operating Segments and Geographic Information (Tables)

9 Months Ended

Apr. 02, 2022

Segment Reporting [Abstract]

Schedule of Information on Reportable Segments

The following tables present information on the Company’s reportable segments for the three months ended April 2, 2022 and April 3, 2021 (in millions):

	Three Months Ended April 2, 2022
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	176.7		$	14.5		$	191.2		$	84.6		$	—	$	275.8
Service revenue	27.6			12.0			39.6			0.1			—		39.7
Net revenue	$	204.3		$	26.5		$	230.8		$	84.7		$	—	$	315.5
Gross profit	$	130.3		$	18.3		$	148.6		$	47.0		$	(8.7)	$	186.9
Gross margin	63.8		%	69.1		%	64.4		%	55.5		%			59.2		%
Operating income							$	34.4		$	33.3		$	(26.9)	$	40.8
Operating margin							14.9		%	39.3		%			12.9		%

	Three Months Ended April 3, 2021
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	166.5		$	7.9		$	174.4		$	92.2		$	—	$	266.6
Service revenue	24.4			12.4			36.8			—			—		36.8
Net revenue	$	190.9		$	20.3		$	211.2		$	92.2		$	—	$	303.4
Gross profit	$	123.1		$	12.4		$	135.5		$	55.9		$	(9.4)	$	182.0
Gross margin	64.5		%	61.1		%	64.2		%	60.6		%			60.0		%
Operating income							$	20.9		$	40.5		$	(25.5)	$	35.9
Operating margin							9.9		%	43.9		%			11.8		%

	Three Months Ended
	April 2, 2022		April 3, 2021
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	195.6	$	191.4
Stock-based compensation	(1.2)		(1.2)
Amortization of intangibles	(7.4)		(8.3)
Other (charges) benefits unrelated to core operating performance (1)	(0.1)		0.1
GAAP gross profit	$	186.9	$	182.0
Corporate reconciling items impacting operating income:
Total segment operating income	$	67.7	$	61.4
Stock-based compensation	(12.8)		(11.0)
Amortization of intangibles	(9.6)		(16.6)
Change in fair value of contingent liability	—		2.3
Other charges unrelated to core operating performance (1)	(4.5)		(0.6)
Restructuring and related benefits	—		0.4
GAAP operating income from continuing operations	$	40.8	$	35.9

(1)    During the three months ended April 2, 2022 and April 3, 2021, other (charges) benefits unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, and loss on disposal of long-lived assets.

	Nine Months Ended April 2, 2022
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	545.9		$	42.6		$	588.5		$	253.8		$	—	$	842.3
Service revenue	77.7			36.7			114.4			0.4			—		114.8
Net revenue	$	623.6		$	79.3		$	702.9		$	254.2		$	—	$	957.1
Gross profit	$	401.0		$	54.4		$	455.4		$	143.8		$	(26.8)	$	572.4
Gross margin	64.3		%	68.6		%	64.8		%	56.6		%			59.8		%
Operating income							$	110.7		$	104.6		$	(78.3)	$	137.0
Operating margin							15.7		%	41.1		%			14.3		%

	Nine Months Ended April 3, 2021
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	462.1		$	28.5		$	490.6		$	286.0		$	—	$	776.6
Service revenue	71.8			39.0			110.8			0.6			—		111.4
Net revenue	$	533.9		$	67.5		$	601.4		$	286.6		$	—	$	888.0
Gross profit	$	339.9		$	44.3		$	384.2		$	175.3		$	(28.0)	$	531.5
Gross margin	63.7		%	65.6		%	63.9		%	61.2		%			59.9		%
Operating income							$	56.4		$	132.4		$	(79.3)	$	109.5
Operating margin							9.4		%	46.2		%			12.3		%

	Nine Months Ended
	April 2, 2022		April 3, 2021
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	599.2	$	559.5
Stock-based compensation	(4.0)		(3.6)
Amortization of intangibles	(22.7)		(24.9)
Other (charges) benefits unrelated to core operating performance (1)	(0.1)		0.5
GAAP gross profit	$	572.4	$	531.5
Corporate reconciling items impacting operating income:
Total segment operating income	$	215.3	$	188.8
Stock-based compensation	(39.7)		(33.4)
Amortization of intangibles	(30.2)		(49.8)
Change in fair value of contingent liability	(0.3)		3.8
Other charges unrelated to core operating performance (1)	(8.2)		(0.7)
Restructuring and related benefits	0.1		0.8
GAAP operating income from continuing operations	$	137.0	$	109.5

(1)    During the nine months ended April 2, 2022 and April 3, 2021, other (charges) benefits unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, and loss on disposal of long-lived assets.

Schedule of Revenue by Geographic Regions

The following table presents net revenue by the three geographic regions in which the Company operates and net revenue from countries that exceeded 10% of the Company’s total net revenue for the three and nine months ended April 2, 2022 and April 3, 2021 (in millions):

	Three Months Ended
	April 2, 2022						April 3, 2021
	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	72.5	$	14.9	$	87.4	$	64.4	$	13.0	$	77.4
Other Americas	17.9		3.5		21.4		21.2		3.2		24.4
Total Americas	$	90.4	$	18.4	$	108.8	$	85.6	$	16.2	$	101.8
Asia-Pacific:
Greater China	$	63.9	$	1.9	$	65.8	$	69.1	$	2.8	$	71.9
Other Asia-Pacific	43.3		5.4		48.7		26.0		4.3		30.3
Total Asia-Pacific	$	107.2	$	7.3	$	114.5	$	95.1	$	7.1	$	102.2
EMEA:
Switzerland	$	18.7	$	0.1	$	18.8	$	18.0	$	0.1	$	18.1
Other EMEA	59.5		13.9		73.4		67.9		13.4		81.3
Total EMEA	$	78.2	$	14.0	$	92.2	$	85.9	$	13.5	$	99.4
Total net revenue	$	275.8	$	39.7	$	315.5	$	266.6	$	36.8	$	303.4

	Nine Months Ended
	April 2, 2022						April 3, 2021
	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	239.8	$	41.1	$	280.9	$	202.5	$	41.3	$	243.8
Other Americas	64.3		10.8		75.1		51.5		10.3		61.8
Total Americas	$	304.1	$	51.9	$	356.0	$	254.0	$	51.6	$	305.6
Asia-Pacific:
Greater China	$	188.1	$	6.8	$	194.9	$	216.3	$	7.8	$	224.1
Other Asia	122.4		14.5		136.9		71.4		11.3		82.7
Total Asia-Pacific	$	310.5	$	21.3	$	331.8	$	287.7	$	19.1	$	306.8
EMEA:
Switzerland	$	43.4	$	0.3	$	43.7	$	55.7	$	0.3	$	56.0
Other EMEA	184.3		41.3		225.6		179.2		40.4		219.6
Total EMEA	$	227.7	$	41.6	$	269.3	$	234.9	$	40.7	$	275.6
Total net revenue	$	842.3	$	114.8	$	957.1	$	776.6	$	111.4	$	888.0