Subsequent Events

12 Months Ended

Jun. 27, 2015

Subsequent Events.

Subsequent Events

Note 20. Subsequent Events

Separation of the Lumentum Business

On August 1, 2015, the Company completed the previously announced separation of the Lumentum business and distributed approximately 80.1% of the outstanding shares of Lumentum common stock to Viavi shareholders who received one share of Lumentum common stock for every five shares of Viavi common stock. The Company was renamed Viavi and, at the time of the distribution, retained ownership of approximately 19.9%, or 11.7 million shares, of Lumentum’s outstanding shares. On August 4, 2015, the Company began “regular-way” trading on NASDAQ under the ticker symbol “VIAV.”

The Company expects to recognize a significant taxable gain for federal and state income tax purposes as a result of the separation of the Lumentum business. The Company also expects to utilize significant net operating losses and other tax attributes in connection with the recognition of the gain.

On July 31, 2015, in connection with the formation of Lumentum Inc., the Company received 40,000 shares of Lumentum Inc.’s Series A Preferred Stock (“Series A Preferred Stock”). Pursuant to the binding commitment to sell the Series A Preferred Stock to Amada Holdings Co., Ltd. (“Amada”), the Company sold 35,805 shares of the Series A Preferred Stock to Amada for $35.8 million and the remaining 4,195 shares of the Series A Preferred Stock were canceled.