Operating Segments and Geographic Information (Tables)
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9 Months Ended |
Apr. 03, 2021 |
Segment Reporting [Abstract] |
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Schedule of information on reportable segments |
Information on reportable segments utilized by our CODM is as follows (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | April 3, 2021 | | March 28, 2020 | | April 3, 2021 | | March 28, 2020 | Net revenue: | | | | | | | | OpComms | $ | 387.9 | | | $ | 359.3 | | | $ | 1,265.5 | | | $ | 1,184.8 | | Lasers | 31.6 | | | 43.5 | | | 85.2 | | | 125.7 | | Net revenue | $ | 419.5 | | | $ | 402.8 | | | $ | 1,350.7 | | | $ | 1,310.5 | | Gross profit: | | | | | | | | OpComms | $ | 194.3 | | | $ | 161.8 | | | $ | 660.9 | | | $ | 550.1 | | Lasers | 14.9 | | | 21.6 | | | 39.4 | | | 56.2 | | Total segment gross profit | 209.2 | | | 183.4 | | | 700.3 | | | 606.3 | | Unallocated corporate items: | | | | | | | | Stock-based compensation | (5.3) | | | (4.3) | | | (13.8) | | | (12.6) | | Amortization of acquired intangibles | (15.8) | | | (13.9) | | | (45.8) | | | (38.8) | | Amortization of inventory fair value adjustments | — | | | (1.5) | | | — | | | (5.8) | | Inventory and fixed asset write down due to product line exits | — | | | (2.3) | | | (0.4) | | | (6.0) | | Integration related costs | — | | | 0.3 | | | — | | | (3.1) | | | | | | | | | | Other charges (1) | (3.1) | | | (4.0) | | | (20.0) | | | (25.5) | | Gross profit | $ | 185.0 | | | $ | 157.7 | | | $ | 620.3 | | | $ | 514.5 | |
(1) “Other charges” of unallocated corporate items for the three and nine months ended April 3, 2021 include costs of transferring product lines to new production facilities, including Thailand of $1.4 million and $6.5 million, respectively. We also incurred excess and obsolete inventory charges driven by U.S. trade restrictions and the related decline in demand from Huawei of $1.0 million and $7.7 million during the three and nine months ended April 3, 2021, respectively. Our excess and obsolete inventory charges related to Huawei were offset by $2.1 million of sale of inventory previously written down during the three and nine months ended April 3, 2021. During the nine months ended April 3, 2021, there was also a $5.0 million impairment charge associated with excess capacity related to our Fiber laser business.
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Schedule of concentration risks |
The table below discloses our total net revenue attributable to each of our two reportable segments. In addition, the table sets forth the percentage of our total net revenue attributable to our product offerings which serve Telecom and Datacom, and Consumer and Industrial markets which accounted for 10% or more of our total net revenue during the periods presented (in millions, except percentage data): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | April 3, 2021 | | March 28, 2020 | | April 3, 2021 | | March 28, 2020 | OpComms: | | | | | | | | | | | | Telecom and Datacom | $ | 255.8 | | 61.0 | % | | $ | 251.0 | | 62.3 | % | | $ | 803.3 | | 59.5 | % | | $ | 765.4 | | 58.4 | % | Consumer and Industrial | 132.1 | | 31.5 | | | 108.3 | | 26.9 | | | 462.2 | | 34.2 | | | 419.4 | | 32.0 | | Total OpComms | $ | 387.9 | | 92.5 | % | | $ | 359.3 | | 89.2 | % | | $ | 1,265.5 | | 93.7 | % | | $ | 1,184.8 | | 90.4 | % | Lasers | 31.6 | | 7.5 | | | 43.5 | | 10.8 | | | 85.2 | | 6.3 | | | 125.7 | | 9.6 | | Total Revenue | $ | 419.5 | | | | $ | 402.8 | | | | $ | 1,350.7 | | | | $ | 1,310.5 | | |
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Schedule of revenue by geographic region |
The following table presents net revenue by the three geographic regions we operate in and net revenue from countries that represented 10% or more of our total net revenue (in millions, except percentage data): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | April 3, 2021 | | March 28, 2020 | | April 3, 2021 | | March 28, 2020 | Net revenue: | Amount | | % of Total | | Amount | | % of Total | | Amount | | % of Total | | Amount | | % of Total | Americas: | | | | | | | | | | | | | | | | United States | $ | 38.2 | | | 9.1 | % | | $ | 38.6 | | | 9.6 | % | | $ | 98.2 | | | 7.3 | % | | $ | 118.9 | | | 9.1 | % | Mexico | 16.3 | | | 3.9 | | | 33.2 | | | 8.2 | | | 107.4 | | | 8.0 | | | 88.3 | | | 6.7 | | Other Americas | 3.7 | | | 0.9 | | | 1.4 | | | 0.3 | | | 10.5 | | | 0.7 | | | 3.2 | | | 0.3 | | Total Americas | $ | 58.2 | | | 13.9 | % | | $ | 73.2 | | | 18.1 | % | | $ | 216.1 | | | 16.0 | % | | $ | 210.4 | | | 16.1 | % | | | | | | | | | | | | | | | | | Asia-Pacific: | | | | | | | | | | | | | | | | Hong Kong | $ | 134.2 | | | 32.0 | % | | $ | 125.9 | | | 31.3 | % | | $ | 426.6 | | | 31.6 | % | | $ | 404.2 | | | 30.8 | % | Philippines | 30.9 | | | 7.4 | | | 14.3 | | | 3.6 | | | 134.3 | | | 9.9 | | | 44.1 | | | 3.4 | | South Korea | 63.3 | | | 15.1 | | | 63.3 | | | 15.7 | | | 185.3 | | | 13.7 | | | 239.9 | | | 18.3 | | | | | | | | | | | | | | | | | | Other Asia-Pacific | 96.6 | | | 22.9 | | | 98.7 | | | 24.5 | | | 282.2 | | | 20.9 | | | 315.1 | | | 24.0 | | Total Asia-Pacific | $ | 325.0 | | | 77.4 | % | | $ | 302.2 | | | 75.1 | % | | $ | 1,028.4 | | | 76.1 | % | | $ | 1,003.3 | | | 76.5 | % | | | | | | | | | | | | | | | | | EMEA | $ | 36.3 | | | 8.7 | % | | $ | 27.4 | | | 6.8 | % | | $ | 106.2 | | | 7.9 | % | | $ | 96.8 | | | 7.4 | % | | | | | | | | | | | | | | | | | Total net revenue | $ | 419.5 | | | | | $ | 402.8 | | | | | $ | 1,350.7 | | | | | $ | 1,310.5 | | | | | | | | | | | | | | | | | | | |
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Schedule of estimated revenue expected to be recognized in the future related to performance obligations |
The following table includes estimated revenue expected to be recognized in the future for backlog related performance obligations that are unsatisfied as of April 3, 2021 (in millions): | | | | | | | | | | | | | | | | Less than 1 year | 1-2 years | Greater than 2 years | Total | Performance obligations | $415.2 | $11.4 | $— | $426.6 |
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Schedule of changes in contract balances |
The following table reflects the changes in contract balances as of April 3, 2021 (in millions, except percentages): | | | | | | | | | | | | | | | | | | | | | | | | | | | Contract balances | Balance sheet location | April 3, 2021 | | June 27, 2020 | | Change | | Percentage Change | Accounts receivable, net | Accounts receivable, net | $224.8 | | $233.5 | | $(8.7) | | (3.7)% | Deferred revenue and customer deposits | Other current liabilities | $1.8 | | $1.9 | | $(0.1) | | (5.3)% |
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Schedule of long-lived assets by geographic region |
Long-lived assets, namely property, plant and equipment, net, were identified based on the physical location of the assets in the corresponding geographic areas as of the periods indicated (in millions): | | | | | | | | | | | | | April 3, 2021 | | June 27, 2020 | Property, plant and equipment, net | | | | United States | $ | 135.5 | | | $ | 139.1 | | Thailand | 107.7 | | | 122.6 | | China | 40.7 | | | 43.2 | | Japan | 34.4 | | | 32.3 | | Other countries | 59.7 | | | 55.8 | | Total property, plant and equipment, net | $ | 378.0 | | | $ | 393.0 | |
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