10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file Number: 0-09692

TELLABS, INC.

(Exact name of registrant as specified in its charter)

Delaware	36-3831568
(State of Incorporation)	(I.R.S. Employer Identification No.)
One Tellabs Center, 1415 W. Diehl Road, Naperville, Illinois	60563
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (630) 798-8800

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer   x	Accelerated Filer  ¨
Non-Accelerated Filer  ¨	Smaller reporting company  ¨
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

Common Shares, $0.01 Par Value – 355,656,364 shares outstanding on July 26, 2013.

TELLABS, INC.

INDEX

		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Operations	3
	Consolidated Statements of Comprehensive Loss	4
	Consolidated Balance Sheets	5
	Consolidated Statements of Cash Flows	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Results of Operations and Financial Condition	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	32
Item 4.	Controls and Procedures	33
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 6.	Exhibits	34
SIGNATURE		35

2

PART I . FINANCIAL INFORMATION

Item 1. Financial Statements

TELLABS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
In millions, except per-share data
Revenue
Products	$	167.9		$	237.4		$	332.9		$	447.1
Services		44.2			50.7			88.6			98.9
Total revenue		212.1			288.1			421.5			546.0
Cost of Revenue
Products		102.3			140.0			209.2			268.7
Services		29.6			33.9			59.8			67.4
Total cost of revenue		131.9			173.9			269.0			336.1
Gross Profit		80.2			114.2			152.5			209.9
Gross profit as a percentage of revenue		37.8	%		39.6	%		36.2	%		38.4	%
Gross profit as a percentage of revenue - products		39.1	%		41.0	%		37.2	%		39.9	%
Gross profit as a percentage of revenue - services		33.0	%		33.1	%		32.5	%		31.9	%
Operating Expenses
Research and development		41.9			58.8			94.6			125.7
Sales and marketing		23.2			32.2			50.2			68.6
General and administrative		17.7			19.7			35.3			40.8
Intangible asset amortization		1.0			1.0			2.1			3.2
Restructuring and other charges		0.5			0.9			35.2			106.9
Total operating expenses		84.3			112.6			217.4			345.2
Operating (Loss) Earnings		(4.1	)		1.6			(64.9	)		(135.3	)
Operating (loss) earnings as a percentage of revenue		-1.9	%		0.6	%		-15.4	%		-24.8	%
Other Income
Interest income, net		0.5			1.6			1.2			3.4
Other expense, net		(1.2	)		(1.1	)		—			(2.1	)
Total other (expense) income		(0.7	)		0.5			1.2			1.3
(Loss) Earnings Before Income Tax		(4.8	)		2.1			(63.7	)		(134.0	)
Income tax expense		(3.0	)		(6.8	)		—			(10.5	)
Net Loss	$	(7.8	)	$	(4.7	)	$	(63.7	)	$	(144.5	)
Weighted Average Shares Outstanding
Basic		356.1			367.1			357.7			366.4
Diluted		356.1			367.1			357.7			366.4
Net Loss Per Share
Basic	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)
Diluted	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)
Cash Dividends Per Share	$	—		$	0.02		$	—		$	0.04

The accompanying notes are an integral part of these statements.

3

TELLABS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
In millions
Net Loss	$	(7.8	)	$	(4.7	)	$	(63.7	)	$	(144.5	)
Reclassification adjustment for net loss (gain) included in net loss, net of tax of $0.0, $0.1, $0.6 and $0.1		0.1			(0.2	)		(2.0	)		(0.2	)
Unrealized net (loss) gain on available-for-sale securities, net of tax of $0.0, $(0.4), $0.0 and $(0.5)		(3.1	)		—			(3.3	)		1.1
Unrealized net gain on net investment hedges		—			6.7			—			2.6
Unrealized net gain on cash flow hedges		0.7			—			0.7			—
Foreign currency translation adjustment		0.9			(37.6	)		(7.2	)		(21.9	)
Comprehensive Loss	$	(9.2	)	$	(35.8	)	$	(75.5	)	$	(162.9	)

The accompanying notes are an integral part of these statements.

4

TELLABS, INC.

CONSOLIDATED BALANCE SHEETS

	6/28/13			12/28/12
In millions, except share data	Unaudited
Assets
Current Assets
Cash and cash equivalents	$	267.2		$	223.7
Investments in marketable securities		274.5			380.7
Total cash, cash equivalents and marketable securities		541.7			604.4
Other marketable securities		244.1			195.1
Accounts receivable, net of allowances of $1.0 and $1.3		200.2			246.8
Inventories
Raw materials		32.6			30.2
Finished goods		81.1			70.8
Total inventories		113.7			101.0
Income taxes		14.5			7.3
Miscellaneous receivables and other current assets		25.3			35.1
Total Current Assets		1,139.5			1,189.7
Property, Plant and Equipment
Land		20.0			20.1
Buildings and improvements		189.1			193.5
Equipment		384.6			406.4
Total property, plant and equipment		593.7			620.0
Accumulated depreciation		(389.0	)		(389.6	)
Property, plant and equipment, net		204.7			230.4
Goodwill		122.1			122.1
Intangible Assets, Net of Amortization		2.3			4.4
Other Assets		70.5			91.5
Total Assets	$	1,539.1		$	1,638.1
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable	$	57.3		$	57.4
Accrued compensation		29.1			37.7
Restructuring and other charges		16.5			19.1
Income taxes		40.6			61.5
Loan related to other marketable securities		244.1			195.1
Deferred revenue		25.5			20.3
Other accrued liabilities		62.7			78.5
Total Current Liabilities		475.8			469.6
Long-Term Restructuring Liabilities		2.7			2.8
Income Taxes		21.8			21.9
Other Long-Term Liabilities		39.6			42.5
Stockholders’ Equity
Preferred stock: authorized 5,000,000 shares of $0.01 par value; no shares issued and outstanding		—			—
Common stock: authorized 1,000,000,000 shares of $0.01 par value; 511,434,268 and 508,846,484 shares issued		5.1			5.1
Additional paid-in capital		1,597.4			1,592.2
Treasury stock, at cost: 155,790,325 and 141,284,352 shares		(1,262.8	)		(1,231.0	)
Retained earnings		572.3			636.0
Accumulated other comprehensive income		87.2			99.0
Total Stockholders’ Equity		999.2			1,101.3
Total Liabilities and Stockholders’ Equity	$	1,539.1		$	1,638.1

The accompanying notes are an integral part of these statements.

5

TELLABS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months
	6/28/13			6/29/12
In millions
Operating Activities
Net loss	$	(63.7	)	$	(144.5	)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization		19.5			26.6
Loss on disposal of property, plant and equipment		0.5			0.8
Equity-based compensation		5.1			10.4
Deferred income taxes		(7.9	)		(0.1	)
Restructuring and other charges		35.2			106.9
Net gain on investments in marketable securities		(1.0	)		—
Net changes in assets and liabilities:
Accounts receivable		36.8			33.8
Inventories		(14.3	)		18.3
Miscellaneous receivables and other current assets		9.0			6.4
Other assets		0.3			(0.8	)
Accounts payable		0.5			(22.8	)
Restructuring and other charges		(23.5	)		(26.6	)
Deferred revenue		5.4			(6.1	)
Other accrued liabilities		(22.8	)		(6.1	)
Income taxes		0.3			(1.2	)
Other long-term liabilities		(1.6	)		(0.6	)
Net Cash Used for Operating Activities		(22.2	)		(5.6	)
Investing Activities
Capital expenditures		(7.8	)		(9.9	)
Disposals of property, plant and equipment		0.2			—
Payments for purchases of investments		(211.0	)		(232.0	)
Proceeds from sales and maturities of investments		318.3			303.2
Net Cash Provided by Investing Activities		99.7			61.3
Financing Activities
Repurchase of common stock		(31.8	)		(3.0	)
Dividends paid		—			(14.6	)
Net Cash Used for Financing Activities		(31.8	)		(17.6	)
Effect of Exchange Rate Changes on Cash		(2.2	)		(4.3	)
Net Increase in Cash and Cash Equivalents		43.5			33.8
Cash and Cash Equivalents - Beginning of Year		223.7			132.7
Cash and Cash Equivalents - End of Period	$	267.2		$	166.5

The accompanying notes are an integral part of these statements.

6

TELLABS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

IN MILLIONS, EXCEPT SHARE AND PER-SHARE DATA

1. Basis of Presentation

We prepared the accompanying unaudited consolidated financial statements in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial statements, the requirements of Form 10-Q and applicable rules of the U.S. Securities and Exchange Commission’s Regulation S-X. Therefore, they do not include all disclosures normally required by U.S. generally accepted accounting principles for complete financial statements. Accordingly, the financial statements and notes herein are to be read in conjunction with our Annual Report on Form 10-K for the year ended December 28, 2012.

In our opinion, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) that are necessary for a fair presentation. Operating results for interim periods are not necessarily indicative of operating results for the full year.

2. Restructuring and Other Charges

On January 31, 2013, management initiated a restructuring plan that is designed to align expenses with revenue. Tellabs is discontinuing the development of the 9200 product and reducing operating expenses. The pretax charges for this plan will consist of approximately $16 million for workforce reductions of approximately 300 employees, $15 million for facility- and asset-related charges, and $5 million for software license and other contract cancellations. Restructuring expense for this plan for the second quarter of 2013 was $3.5 million, which consists of a reduction of expense of $0.1 million for severance-related charges and charges of $3.6 million for facility- and asset-related charges. Restructuring expense for this plan for the first six months of 2013 was $36.3 million, which consists of $16.1 million for severance-related charges, $16.0 million for facility- and asset-related charges, and $4.2 million for other obligations. By segment, total charges to date under this plan are $1.0 million for Optical, $34.9 million for Data, and $0.4 million for Services. Estimated cash payments under this plan are expected to be $20.2 million, of which $12.9 million has been paid through the second quarter of 2013. Other than the cash payments, actions under this plan are expected to be substantially completed by the end of the fourth quarter of 2013.

On October 24, 2012, management initiated a restructuring plan that is designed to further align expenses with revenue and current market conditions. In order to reduce costs and operating expenses, this plan includes moving certain functions to lower cost geographies. The pretax charges will consist of approximately $10 million for severance-related charges that will affect approximately 200 employees, and $1 million for facility- and asset-related charges. Restructuring expense for this plan for the second quarter of 2013 was $0.7 million, for severance-related charges. Restructuring expense for this plan for the first six months of 2013 was $0.8 million, which consists of $0.5 million for severance-related charges and $0.3 million for facility- and asset-related charges. Cumulative restructuring charges for this plan are $10.2 million, which consists of $9.7 million for severance-related charges and $0.5 million for facility- and asset-related charges. By segment, total charges to date under this plan are $2.3 million for Optical, $3.8 million for Data, $0.8 million for Access, and $3.3 million for Services. Estimated cash payments under this plan are expected to be $8.6 million, of which $5.3 million has been paid through the second quarter of 2013. Other than the cash payments, actions under this plan are expected to be substantially completed by the end of the fourth quarter of 2013.

On January 30, 2012, management initiated a restructuring plan that aligns expenses with revenue. Tellabs stopped new development on the Tellabs^® SMARTCORE 9100 series for mobile packet core and consolidated research and development into fewer locations. A net reduction in expense for this plan for the second quarter of 2013 was $4.0 million, which consists of reductions of $0.1 million for workforce adjustments and $3.9 million for facility- and asset-related charges related to a change in sub-tenant leases. A net reduction in expense for this plan for the first six months of 2013 was $2.5 million, which consists of reductions of $0.2 million for workforce adjustments and $2.3 million for facility- and asset-related charges. Cumulative restructuring charges for this plan are $106.3 million, which consists of $23.0 million for severance-related charges, $34.4 million for facility- and asset-related charges, $47.7 million for the accelerated amortization of abandoned intangible assets, and $1.2 million for other obligations. By segment, total charges to date under this plan are $4.4 million for Optical, $98.2 million for Data, $1.5 million for Access, and $2.2 million for Services. Estimated cash payments under this plan are expected to be $28.5 million, of which $26.9 million has been paid through the second quarter of 2013. Other than the cash payments, actions under this plan were completed in the first quarter of 2013.

7

Restructuring expense for previous restructuring plans for the second quarter of 2013 was $0.3 million, which consists of a reduction of expense of $0.1 million for severance-related charges, charges of $0.3 million for facility- and asset-related charges and $0.1 million of other obligations. Restructuring expense for the first six months of 2013 was $0.6 million, which consists of a reduction of expense of $0.2 million for severance-related charges, charges of $0.7 million for facility- and asset-related charges and $0.1 million of other obligations.

The balance for restructuring plans relates to net lease obligations that expire through 2017 and cash severance that we expect to pay through the first quarter of 2014.

The following table summarizes restructuring and other charges recorded for the plans mentioned above, as well as adjustments to reserves recorded for prior restructurings:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13		6/29/12
Severance and other termination benefits	$	0.4	$	(2.0	)	$	16.2	$	22.1
Facility and other exit costs		—		2.9			14.7		35.9
Other obligations		0.1		—			4.3		1.2
Accelerated amortization of intangible assets		—		—			—		47.7
Total restructuring and other charges	$	0.5	$	0.9		$	35.2	$	106.9

The following table summarizes restructuring and other charges activity by segment for the second quarter and the first six months of 2013 and the status of the reserves at June 28, 2013:

			Second Quarter Activity
	Balance at 3/29/13		Restructuring Expense			Cash Payments			Other Activities 1			Balance at 6/28/13
2013 Restructuring Plan
Optical	$	0.6	$	0.1		$	(0.4	)	$	—		$	0.3
Data		15.4		3.4			(7.4	)		(2.4	)		9.0
Access		—		—			—			—			—
Services		0.3		—			(0.3	)		—			—
Subtotal 2013 Restructuring Plan		16.3		3.5			(8.1	)		(2.4	)		9.3
2012 Restructuring Plans
Optical		2.7		—			(1.3	)		—			1.4
Data		9.0		(3.9	)		(1.6	)		(0.8	)		2.7
Access		1.1		—			(0.4	)		—			0.7
Services		1.9		0.6			(1.2	)		—			1.3
Subtotal 2012 Restructuring Plans		14.7		(3.3	)		(4.5	)		(0.8	)		6.1
Previous Restructuring Plans
Optical		0.3		0.3			0.1			—			0.7
Data		2.8		—			(0.4	)		—			2.4
Access		1.1		—			(0.4	)		—			0.7
Services		—		—			—			—			—
Subtotal Previous Restructuring Plans		4.2		0.3			(0.7	)		—			3.8
Total All Restructuring Plans	$	35.2	$	0.5		$	(13.3	)	$	(3.2	)	$	19.2

8

			Six Months Activity
	Balance at 12/28/12		Restructuring Expense			Cash Payments			Other Activities 1			Balance at 6/28/13
2013 Restructuring Plan
Optical	$	—	$	1.0		$	(0.7	)	$	—		$	0.3
Data		—		34.9			(11.8	)		(14.1	)		9.0
Access		—		—			—			—			—
Services		—		0.4			(0.4	)		—			—
Subtotal 2013 Restructuring Plan		—		36.3			(12.9	)		(14.1	)		9.3
2012 Restructuring Plans
Optical		3.9		(0.4	)		(2.1	)		—			1.4
Data		8.6		(1.7	)		(3.9	)		(0.3	)		2.7
Access		1.5		(0.1	)		(0.7	)		—			0.7
Services		2.8		0.5			(2.0	)		—			1.3
Subtotal 2012 Restructuring Plans		16.8		(1.7	)		(8.7	)		(0.3	)		6.1
Previous Restructuring Plans
Optical		0.6		0.3			(0.2	)		—			0.7
Data		3.1		0.3			(1.0	)		—			2.4
Access		1.4		—			(0.7	)		—			0.7
Services		—		—			—			—			—
Subtotal Previous Restructuring Plans		5.1		0.6			(1.9	)		—			3.8
Total All Restructuring Plans	$	21.9	$	35.2		$	(23.5	)	$	(14.4	)	$	19.2

¹ Other activities include accelerated depreciation of property, plant and equipment to be disposed, the effects of currency translation as well as other changes that do not flow through restructuring expense.

3. Fair Value Measurements

Our financial instruments consist of cash equivalents, accounts receivable, accounts payable, marketable securities and derivatives. The carrying value of the cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair value because of their short-term nature. We determine the fair value of marketable securities and derivatives based on observable inputs such as quoted prices in active markets, or other than quoted prices in active markets, that are observable either directly or indirectly.

Fair value is measured as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows:

• Level 1 - Observable inputs, such as quoted prices in active markets;

• Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

• Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. In determining fair value for recurring financial assets and liabilities, we separate our financial instruments into three categories: marketable securities, other marketable securities and loan related to other marketable securities, and derivative financial instruments. These assets and liabilities are all valued based on the market approach that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

9

Marketable Securities

We use a third-party provider to determine fair values of marketable securities. The third-party provider receives market prices for each marketable security from a variety of industry-standard data providers, security master files from large financial institutions and other third-party sources with reasonable levels of price transparency. The third-party provider uses these multiple prices as inputs into a pricing model to determine a weighted average price for each security. Tellabs management compares the third-party pricing with pricing from outside investment managers and other market sources to ensure the third-party pricing is reasonable. We classify U.S. Treasury bills and bonds as Level 1 based upon quoted prices in active markets. All other marketable securities are classified as Level 2 based upon the other than quoted prices with observable market data. The type of instruments valued based upon the observable market data include U.S. government sponsored enterprise (agency) debt obligations, Federal Deposit Insurance Corporation (FDIC)-backed corporate debt obligations, investment grade corporate bonds, state and municipal debt obligations, mortgaged backed debt obligations guaranteed by the Government National Mortgage Association (GNMA), certain FDIC-backed bank certificates of deposit, foreign government debt obligations and foreign corporate debt obligations guaranteed by foreign governments.

Other Marketable Securities and Loan Related to Other Marketable Securities

We classify holdings in other marketable securities (Cisco common stock) and the related loan as Level 1 in the fair value hierarchy. We classify these as Level 1 since they are actively traded through a governed exchange.

Derivative Financial Instruments

Our foreign currency forward contracts are executed as exchange-traded. Market participants can be described as large money center or regional banks. Exchange-traded derivatives typically fall within Level 1 or Level 2 in the fair value hierarchy depending on whether they are deemed to be actively traded or not.

We have elected to value derivatives as Level 2, using observable market data at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted). Key inputs for currency derivatives are the spot rate, interest rates and credit derivative swap spreads. The spot rate for each currency is the same spot rate used for all balance sheet translations at the measurement date. The following values are calculated from commonly quoted intervals available from a third-party financial information provider. Forward points and LIBOR rates are used to calculate a discount rate to apply to assets and liabilities. One-year credit default swap spreads are used to discount derivative assets, all of which have final maturities of less than 12 months. We calculate the discount to the derivative liabilities to reflect the potential credit risk to lenders and have used the spread over LIBOR based on the credit risk of our counterparties. Each asset is individually discounted to reflect our potential credit risk and we have used the spread over LIBOR based on similar credit risk. We do not adjust the fair value for immaterial credit risk.

We have applied a valuation method for financial assets and liabilities consistently during this period and prior periods. The following table sets forth by level within the fair value hierarchy “Financial instruments owned at fair value.” Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and liabilities measured at fair value on a recurring basis are:

			Fair Value Measurements at June 28, 2013
	Balance at 6/28/13		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Investments in marketable securities
U.S. government debt obligations	$	52.0	$	52.0	$	—	$	—
Corporate debt obligations		57.7		—		57.7		—
Mortgaged backed debt obligations guaranteed by GNMA		104.1		—		104.1		—
Certificates of deposit guaranteed by FDIC		1.2		—		1.2		—
Foreign government debt obligations		26.4		—		26.4		—
Foreign corporate debt obligations guaranteed by foreign governments		33.1		—		33.1		—
Subtotal		274.5		52.0		222.5		—
Other marketable securities		244.1		244.1		—		—
Derivative financial instruments		0.7		—		0.7		—
Total assets	$	519.3	$	296.1	$	223.2	$	—
Liabilities
Loan related to other marketable securities	$	244.1	$	244.1	$	—	$	—
Derivative financial instruments		0.2		—		0.2		—
Total liabilities	$	244.3	$	244.1	$	0.2	$	—

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			Fair Value Measurements at December 28, 2012
	Balance at 12/28/12		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Investments in marketable securities
U.S. government debt obligations	$	31.1	$	31.1	$	—	$	—
Corporate debt obligations		9.6		—		9.6		—
Mortgaged backed debt obligations guaranteed by GNMA		55.5		—		55.5		—
Certificates of deposit guaranteed by FDIC		1.2		—		1.2		—
Foreign government debt obligations		161.1		—		161.1		—
Foreign corporate debt obligations guaranteed by foreign governments		122.2		—		122.2		—
Subtotal		380.7		31.1		349.6		—
Other marketable securities		195.1		195.1		—		—
Total assets	$	575.8	$	226.2	$	349.6	$	—
Liabilities
Loan related to other marketable securities	$	195.1	$	195.1	$	—	$	—
Derivative financial instruments		0.1		—		0.1		—
Total liabilities	$	195.2	$	195.1	$	0.1	$	—

4. Investments

Investments in marketable securities

At June 28, 2013, and December 28, 2012, available-for-sale marketable securities consisted of the following:

June 28, 2013	Amortized Cost		Unrealized Gain		Unrealized Loss			Fair Value
U.S. government debt obligations	$	52.8	$	—	$	(0.8	)	$	52.0
Corporate debt obligations		58.2		—		(0.5	)		57.7
Mortgaged backed debt obligations guaranteed by GNMA		105.4		0.2		(1.5	)		104.1
Certificates of deposit guaranteed by FDIC		1.2		—		—			1.2
Foreign government debt obligations		26.4		—		—			26.4
Foreign corporate debt obligations guaranteed by foreign governments		33.0		0.1		—			33.1
Total	$	277.0	$	0.3	$	(2.8	)	$	274.5

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December 28, 2012
U.S. government debt obligations	$	31.1	$	—	$	—	$	31.1
Corporate debt obligations		9.5		0.1		—		9.6
Mortgaged backed debt obligations guaranteed by GNMA		54.9		0.6		—		55.5
Certificates of deposit guaranteed by FDIC		1.2		—		—		1.2
Foreign government debt obligations		159.3		1.8		—		161.1
Foreign corporate debt obligations guaranteed by foreign governments		121.5		0.7		—		122.2
Total	$	377.5	$	3.2	$	—	$	380.7

The following table summarizes the maturities of our available-for-sale marketable securities at June 28, 2013:

	Amortized Cost		Fair Value
Less than 12 months	$	65.3	$	65.4
Due in 1 to 5 years		106.4		105.0
Due after 5 years		105.3		104.1
Total	$	277.0	$	274.5

Gross unrealized gains and losses related to fixed-income securities were caused by interest rate fluctuations. We review investments held with unrealized losses to determine if the loss is other-than-temporary. We evaluated near-term prospects of the security in relation to the severity and duration of the unrealized loss. We also assessed our intent to sell the security, whether it is more likely than not that the security will be required to be sold before recovery, or the security is not expected to recover its entire amortized cost basis. Based on our review, we do not intend to sell these securities and believe that they will recover their entire amortized cost basis; therefore, we do not consider these investments to be other-than-temporarily impaired at June 28, 2013. No other-than-temporary impairments were recorded in the second quarter or first six months of 2013 and 2012.

Gross unrealized gains and losses related to fixed-income securities were caused by interest rate fluctuations. No other-than-temporary impairments were recorded in the second quarter or first six months of 2013 and 2012.

Investments in marketable securities with unrealized losses at June 28, 2013, were as follows:

	Unrealized Loss Less than 12 months					Unrealized Loss Greater than 12 months				Total
June 28, 2013	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government debt obligations	$	41.0	$	(0.8	)	$	—	$	—	$	41.0	$	(0.8	)
Corporate debt obligations		51.6		(0.5	)		—		—		51.6		(0.5	)
Mortgaged backed debt obligations guaranteed by GNMA		82.1		(1.5	)		—		—		82.1		(1.5	)
Total	$	174.7	$	(2.8	)	$	—	$	—	$	174.7	$	(2.8	)

Investments in marketable securities with unrealized losses at December 28, 2012, were negligible.

The following table presents gross realized gains and losses related to fixed income investments:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Gross realized gains	$	0.1		$	0.2		$	1.7		$	0.5
Gross realized losses		(0.3	)		(0.2	)		(0.7	)		(0.5	)
Total	$	(0.2	)	$	—		$	1.0		$	—

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Other marketable securities and Loan related to other marketable securities

With the acquisition of Advanced Fibre Communications, Inc. (AFC) in 2004, we acquired 10.6 million shares of Cisco common stock, shown as Other marketable securities in Current Assets in our Consolidated Balance Sheets. Our Cisco common stock is classified as a trading security. In addition, we have a share loan arrangement with a financial institution for the same number of shares of Cisco common stock shown as Loan related to other marketable securities in Current Liabilities in our Consolidated Balance Sheets, which is due on demand.

As a result, we own the same number of Cisco shares as we have borrowed under the share loan arrangement; thereby, eliminating any market risk exposure associated with the share loan arrangement as increases (or decreases) in the value of Cisco stock are off-set equally by increases (or decreases) in the value of the shares of Cisco stock we own. In the event the counter-party financial institution to the share loan arrangement demands return of the borrowed Cisco shares, we will settle the obligation with our Cisco shares or with shares borrowed from another lender.

Other marketable securities and Loan related to other marketable securities was $244.1 million at a market price of $24.34 per share at June 28, 2013, and $195.1 million at a market price of $19.45 per share at December 28, 2012. The fees associated with the stock loan agreement of $0.3 million in the second quarter of 2013 and 2012, and $0.6 million in the first six months of 2013 and 2012, are included in Interest income, net in the Consolidated Statements of Operations.

Additionally, in connection with our acquisition of AFC, we recorded a tax liability associated with a deferred gain relating to a settled hedging arrangement on the acquired Cisco shares. The deferred tax liability was $184.0 million as of June 28, 2013, and as of December 28, 2012.

The Cisco shares and related loan discussed above are maintained by us in order to defer recognition of the tax gain for income tax purposes. In the fourth quarter of 2012, we settled 0.6 million shares, reducing the number of borrowed shares to 10.0 million. In the future we may settle all or a portion of the remaining borrowed shares to the extent we are able to offset the gain by utilizing net operating loss or tax credit carryforwards. To the extent we cannot offset all or a portion of the gain, we may incur cash tax payments that could significantly reduce our cash and cash equivalents.

Long-term equity investments

In addition to the above investments, we maintain investments in partnerships and start-up technology companies. We include these investments in Other Assets, at cost. These investments totaled $1.6 million at June 28, 2013, and $1.8 million at December 28, 2012. We review each investment quarterly, including historical and projected financial performance, expected cash needs and recent funding events. We recognize other-than-temporary impairments if the market value of the investment is below its cost basis for an extended period of time or if the issuer has experienced significant financial declines or difficulties in raising capital to continue operations. We did not record other–than-temporary impairments for the second quarters and six months ended June 28, 2013, and June 29, 2012. Gains on the sale of long-term equity investments and other-than-temporary impairments are included in Other expense, net in the Consolidated Statements of Operations.

5. Derivative Financial Instruments

Financial Contracts and Market Risk

We conduct business on a global basis in U.S. and foreign currencies, subjecting us to risks associated with fluctuating foreign exchange rates. To mitigate these risks, we use derivative foreign exchange contracts to address nonfunctional exposures that are expected to be settled in one year or less. The derivative foreign exchange contracts consist of foreign currency forward and option contracts.

Derivative financial contracts involve elements of market and credit risk. The market risk that results from these contracts relates to changes in foreign currency exchange rates, which generally are offset by changes in the value of the underlying assets or liabilities being held. Credit risk relates to the risk of nonperformance by a counterparty to one of the derivative contracts. We do not believe there is a significant credit risk associated with our hedging activities. We monitor the counterparties’ credit ratings and other market data to minimize credit risk. In addition, we also limit the aggregate contract amount entered into with any one financial institution to mitigate credit risk.

Cash Flow Hedges

We use foreign currency forward and option contracts, designated as cash flow hedges, to mitigate currency risk related to an imbalance of nonfunctional currency denominated costs and related revenue. We conduct monthly effectiveness tests of these hedging relationships on a spot-to-spot basis, excluding forward points. Effective gains and losses from derivative contracts are recorded in Accumulated other comprehensive income until the underlying transactions occur, at which time they are reclassified to Total Revenue. Ineffectiveness is recorded to Other expense, net. If it becomes probable that an anticipated transaction that is hedged will not occur, we immediately reclassify the gains or losses related to that hedge from Accumulated other comprehensive income to Other expense, net. We continue to monitor the Company’s overall currency

13

exposure and may elect to add additional cash flow hedges in the future if deemed necessary. At June 28, 2013, we had a net unrealized gain of $0.7 million in Accumulated other comprehensive income, which is expected to be reclassified to income within the next 12 months. At June 28, 2013, we held derivatives designated as cash flow hedges in one currency, with a gross notional equivalent of $14.1 million. We did not hold any derivatives designated as cash flow hedges at June 29, 2012.

Balance Sheet Hedges (Non-designated Hedges)

Short-term monetary assets and liabilities denominated in currencies other than the functional currency are remeasured through income as foreign currency rates fluctuate. Changes in the value of derivative contracts intended to offset these fluctuations are also recorded in income. These derivative contracts are not designated as hedges. At June 28, 2013, we held non-designated foreign currency forward contracts in 13 currencies, with a gross notional equivalent of $110.1 million. At June 29, 2012, we held non-designated foreign currency forward contracts in 14 currencies, with a gross notional equivalent of $212.3 million.

Net Investment Hedges

Periodically we may enter into foreign currency contracts designated as net investment hedges to hedge a portion of our net investment in one of our foreign subsidiaries to preserve the U.S. dollar value of our Euro cash. Effective changes in the fair value of these contracts, less applicable deferred income taxes are recorded within Accumulated other comprehensive income. Those amounts will be reflected in income only when we dispose of the investment in the foreign subsidiary. We conduct monthly effectiveness tests of net investment hedges on a spot-to-spot basis, excluding forward points, and any measurement of ineffectiveness is recorded in income. As of June 28, 2013, we had a net unrealized gain of $16.1 million in Accumulated other comprehensive income related to settled contracts. At June 28, 2013, we did not have any net investment hedges outstanding. As of June 29, 2012, we had a net unrealized gain of $21.2 million in Accumulated other comprehensive income related to settled contracts.

The fair value of derivative instruments in the Consolidated Balance Sheet as of June 28, 2013, was as follows:

	Asset Derivatives Reported in Miscellaneous Receivables and Other Current Assets		Liability Derivatives Reported in Other Accrued Liabilities
Cash flow hedges	$	0.6	$	—
Balance sheet hedges (Non-designated hedges)		0.1		0.2
Total derivatives	$	0.7	$	0.2

The fair value of derivative instruments in the Consolidated Balance Sheet as of December 28, 2012, was as follows:

	Asset Derivatives Reported in Miscellaneous Receivables and Other Current Assets		Liability Derivatives Reported in Other Accrued Liabilities
Balance sheet hedges (Non-designated hedges)	$	—	$	0.1

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The effect of derivative instruments designated as hedging instruments on the Consolidated Statements of Operations follows:

	Three Months Ended
	Gain Recognized in Accumulated  OCI, net (Effective Portion)				Gain Recognized in Revenue				(Loss) Gain Recognized in  Other Expense net: Excluded from Effectiveness Testing Gain (Loss)
	6/28/13		6/29/12		6/28/13		6/29/12		6/28/13			6/29/12
Cash flow hedges	$	0.7	$	—	$	0.3	$	—	$	(0.1	)	$	—
Net investment hedges	$	—	$	6.7		N/A		N/A	$	—		$	0.1
	Six Months Ended
	Gain Recognized in Accumulated OCI, net (Effective Portion)				Gain Recognized in Revenue				(Loss) Gain Recognized in Other Expense, net: Excluded from Effectiveness Testing Gain (Loss)
	6/28/13		6/29/12		6/28/13		6/29/12		6/28/13			6/29/12
Cash flow hedges	$	0.7	$	—	$	0.3	$	—	$	(0.1	)	$	—
Net investment hedges	$	—	$	2.5		N/A		N/A	$	—		$	0.2

The effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations follows:

	Second Quarter					Six Months
	Gain (Loss) Recognized in Other Expense, net 1					Loss Recognized in Other Expense, net 1
	6/28/13		6/29/12			6/28/13			6/29/12
Foreign currency forward and option contracts	$	3.2	$	(2.0	)	$	(4.5	)	$	(0.6	)

¹ The gains or losses from changes in the fair value of the derivative contracts are generally offset by gains or losses of the underlying transactions being hedged.

6. Product Warranties

We provide warranties for all of our products. The specific terms and conditions of those warranties vary depending on the product. We provide a basic limited warranty for periods ranging from 90 days to 6 years.

The estimate of warranty liability involves many factors, including the number of units shipped, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of the recorded warranty liability and adjust the amounts as necessary. Other adjustments to accruals for product warranties represent reductions due to favorable experience to previous estimates.

We classify the portion of warranty liability that we expect to incur in the next 12 months as a current liability. We classify the portion of warranty liability that we expect to incur more than 12 months in the future as a long-term liability. Product warranty liabilities are as follows:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Balance – beginning of period	$	15.8		$	17.3		$	15.8		$	17.0
Accruals for product warranties		1.6			1.0			2.8			2.9
Settlements		(0.6	)		(1.3	)		(1.8	)		(2.2	)
Other adjustments to accruals for product warranties		(0.4	)		(0.7	)		(0.4	)		(1.4	)
Balance – end of period	$	16.4		$	16.3		$	16.4		$	16.3
Balance sheet classification - end of period	Balance at 6/28/13			Balance at 6/29/12
Other accrued liabilities	$	6.6		$	7.4
Other long-term liabilities		9.8			8.9
Total product warranty liabilities	$	16.4		$	16.3

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7. Equity-Based Compensation

The Tellabs, Inc. Amended and Restated 2004 Incentive Compensation Plan (2004 Plan) provides for the grant of short-term and long-term incentives, including stock options, stock appreciation rights (SARs), restricted stock and performance stock units (PSUs). Equity-based grants vest over one to three years, with the majority vesting over a three-year period. We recognize compensation expense for stock options, restricted stock and PSUs over the service period based on the fair value on the grant date. Stock options and SARs granted but unexercised expire 10 years from the grant date. Stockholders previously approved 53,889,977 shares for grant under the 2004 Plan, of which 15,255,440 remain available for grant at June 28, 2013.

Stock Options

We estimate the fair value of stock options using the Black-Scholes option-pricing model. This model requires the use of assumptions that will have a significant impact on the fair value estimate. There were no stock options granted during the second quarter and first six months of 2013.

The following table summarizes the assumptions used to compute the weighted average fair value of stock option grants:

	6/29/12
Expected volatility		43.3	%
Risk-free interest rate		0.9	%
Expected term (in years)		5.3
Expected dividend yield		2.0	%

We based our calculation of expected volatility on a combination of historical and implied volatility for options granted. We based the risk-free interest rate on the U.S. Treasury yield curve in effect at the date of grant. We estimated the expected term of the options using their vesting period, post-vesting employment termination behavior and historical exercise patterns. We based the expected dividend yield on the option’s exercise price and annualized dividend rate at the date of grant.

The following is a summary of stock option activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in  millions)
Outstanding – beginning of year		16,713,155		$	7.50
Exercised		(470	)	$	0.16
Forfeited/expired		(1,037,933	)	$	7.26
Outstanding – end of period		15,674,752		$	7.52		2.9	$	—
Exercisable – end of period		14,547,270		$	7.75		2.5	$	—
Shares vested or expected to vest		15,603,508		$	7.53		2.9	$	—

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price as of June 28, 2013, that the option holders would have received had all holders exercised their options as of that date. The aggregate intrinsic value of exercised stock options during the second quarter of 2013 was negligible.

Cash-Settled Stock Appreciation Rights

The 2004 Plan provides for the granting of cash-settled SARs in conjunction with, or independent of, the stock options under the 2004 Plan. These SARs allow the holder to receive in cash the difference between the cash-settled SARs’ grant price (the market value of our stock on the grant date) and the market value of our stock on the date the holder exercises the SAR. There were no SARs granted during the first six months of 2013. There were no cash payments during the first six months of 2013 and 2012.

16

The following is a summary of cash-settled SARs activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Exercise Price
Outstanding – beginning of year		456,195		$	6.67
Forfeited/expired		(20,667	)	$	5.58
Outstanding – end of period		435,528		$	6.72

Restricted Stock

The fair market value of restricted stock vested was $3.2 million in the first six months of 2013. The weighted average grant date fair value of restricted stock was $2.07 per share in the first six months of 2013 and $3.95 per share in the first six months of 2012.

The following is a summary of restricted stock activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		3,899,865		$	4.68
Granted		881,372		$	2.07
Vested		(1,511,388	)	$	5.33
Forfeited		(507,478	)	$	4.54
Non-vested – end of period		2,762,371		$	3.51

Performance Stock Units

The 2004 Plan provides for the granting of PSUs. We granted 5,282,045 PSUs in the first six months of 2013 and 1,962,549 PSUs in the first six months of 2012. The PSUs granted in the first six months of 2013 entitle the recipients to receive shares of our common stock commencing in the first quarter of 2014, contingent on the achievement of operating earnings, performance related to revenue and attainment of strategic objectives for the 2013 fiscal year. Following achievement of these measures and subject to continued employment, one-third of such shares will be issued in annual installments beginning in the first quarter of 2014. At maximum target performance, we will issue one share for each PSU granted. The weighted average price of PSUs granted in the first six months of 2013 was $2.20 per share and the weighted average price of PSUs granted in the first six months of 2012 was $3.98 per share.

The PSUs granted in 2012 entitle the recipients to receive shares of our common stock commencing in the first quarter of 2013, contingent on the achievement of operating earnings targets and strategic goals for the 2012 fiscal year. Under the executive plan, 100% of the PSUs were earned and one share for each PSU will be paid out, subject to continued employment. We issued one-third (255,573 shares) of the total shares in the first quarter of 2013 and generally, one-third of such shares will be issued in annual installments in the first quarter of 2014 and the first quarter of 2015.

The following is a summary of PSU activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		1,633,866		$	4.40
Granted		5,282,045		$	2.20
Vested		(949,901	)	$	4.61
Forfeited		(661,038	)	$	2.77
Non-vested – end of period		5,304,972		$	2.38

Equity-Based Compensation Expense

The following table sets forth the total equity-based compensation expense resulting from stock options, SARs, restricted stock, and PSUs by line item on the Statements of Operations:

17

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13			6/29/12
Cost of revenue – products	$	0.2	$	0.2		$	0.4		$	0.6
Cost of revenue – services		0.2		0.4			0.6			0.9
Research and development		0.3		1.4			0.9			3.2
Sales and marketing		0.3		0.8			0.8			1.7
General and administrative		1.0		2.0			2.4			4.0
Equity-based compensation expense before income taxes		2.0		4.8			5.1			10.4
Income tax benefit		—		(0.1	)		(0.1	)		(0.2	)
Total equity-based compensation expense after income taxes	$	2.0	$	4.7		$	5.0		$	10.2

The following table sets forth the total equity-based compensation expense by type:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13		6/29/12
Stock options	$	0.3	$	0.9		$	0.9	$	2.0
Cash-settled SARs		—		(0.2	)		—		(0.1	)
Restricted stock		1.4		2.4			3.5		5.8
Performance stock units		0.3		1.7			0.7		2.7
Total	$	2.0	$	4.8		$	5.1	$	10.4

As of June 28, 2013, we had $9.1 million of unrecognized equity-based compensation cost that we expect to recognize over a weighted average period of 1.4 years.

8. Income Taxes

We recorded tax expense of $3.0 million in the second quarter and zero for the first six months of 2013. Our tax expense results in an effective tax rate that differs from the federal statutory rate of 35% due to limitations on our ability to record a tax benefit on losses from domestic operations, combined with tax expense on income from foreign operations.

9. Accumulated Other Comprehensive Income

Accumulated other comprehensive income has no impact on our net loss but is reflected in our consolidated balance sheet through adjustments to stockholders’ equity. Accumulated other comprehensive income derives from unrealized gains (losses) and related adjustments on available-for-sale securities, unrealized gains (losses) on cash flow hedges, foreign currency translation adjustments, unrecognized prior service costs and unrecognized net gains (losses) on our retiree medical plan.

Accumulated other comprehensive income (net of tax) for the first six months of 2013 consists of the following:

	Unrealized Net Gain (Loss) on Available-for- Sale Securities			Unrealized net Gain on Cash Flow Hedges		Foreign Currency Translation Adjustments			Unrecognized Prior Service Cost			Unrecognized Net Gain on Retiree Medical Plan		Accumulated Other Comprehensive Income
Balance at December 28, 2012	$	2.4		$	—	$	94.9		$	(0.1	)	$	1.8	$	99.0
Amounts reclassified from other comprehensive income		(2.0	)		—		—			—			—		(2.0	)
Other comprehensive (loss) gain		(3.3	)		0.7		(7.2	)		—			—		(9.8	)
Net other comprehensive loss		(5.3	)		0.7		(7.2	)		—			—		(11.8	)
Balance at June 28, 2013	$	(2.9	)	$	0.7	$	87.7		$	(0.1	)	$	1.8	$	87.2

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Amounts reclassified from accumulated other comprehensive income to net loss in the Consolidated Statements of Operations were as follows:

	Second Quarter
Details about Accumulated Other Comprehensive Income Components	6/28/13			6/29/12			Affected Line Item in the Consolidated Statements of Operations
Unrealized net (loss) gain on available-for-sale securities	$	(0.1	)	$	0.3		Other expense, net
		—			(0.1	)	Income tax expense
	$	(0.1	)	$	0.2		Net of tax
	Six Months
Details about Accumulated Other Comprehensive Income Components	6/28/13			6/29/12			Affected Line Item in the Consolidated Statements of Operations
Unrealized net gain on available-for-sale securities	$	2.6		$	0.3		Other expense, net
		(0.6	)		—		Income tax expense
	$	2.0		$	0.3		Net of tax

10. Segment Information

We report in four segments: Optical, Data, Access and Services.

Optical segment products are primarily used to manage large volumes of telecommunication traffic in metro areas. The Optical segment includes Tellabs^® 5000 Series of Digital Cross-Connect systems, the Tellabs^® 6300 Managed Transport System, the Tellabs^® 7100 OTS and the Tellabs^® 7300 Metro Ethernet Switching Series.

Data segment products are primarily used in mobile backhaul applications, and for business services and various edge routing applications. The Data segment includes the Tellabs^® 8100 Managed Access Systems and the Tellabs 8600 and 8800 Smart Routers.

Access segment products are primarily used to enable service providers to bundle Internet, video, and voice over high-speed fiber-based networks and in Optical LAN applications. The Access segment includes the Tellabs^® 1000 and 1100 Multi-service Access systems, and the Tellabs^® 1600 Optical Network Terminals (ONTs).

The Services segment delivers deployment, training, support and professional services to Tellabs’ customers. Through these offerings, Tellabs serves its customers through the phases of planning, deploying and operating a network.

We define segment profit (loss) as gross profit less research and development expenses. Segment profit (loss) excludes sales and marketing expenses, general and administrative expenses, the amortization of intangibles, restructuring and other charges, and the impact of equity-based compensation.

Consolidated revenue by segment follows:

	Second Quarter				Six Months
	6/28/13		6/29/12		6/28/13		6/29/12
Optical	$	112.7	$	122.4	$	205.8	$	226.8
Data		35.8		77.7		68.7		147.1
Access		19.4		37.3		58.4		73.2
Services		44.2		50.7		88.6		98.9
Total revenue	$	212.1	$	288.1	$	421.5	$	546.0

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Segment profit (loss) and reconciliation to operating loss (earnings) by segment follows:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Optical	$	25.4		$	29.0		$	38.2		$	43.8
Data		(2.5	)		5.4			(17.3	)		0.4
Access		1.3			6.0			9.5			12.4
Services		14.8			17.2			29.4			32.4
Total segment profit	$	39.0		$	57.6		$	59.8		$	89.0
Sales and marketing expenses		(23.2	)		(32.2	)		(50.2	)		(68.6	)
General and administrative expenses		(17.7	)		(19.7	)		(35.3	)		(40.8	)
Equity-based compensation		(0.7	)		(2.2	)		(1.9	)		(4.8	)
Intangible asset amortization		(1.0	)		(1.0	)		(2.1	)		(3.2	)
Restructuring and other charges		(0.5	)		(0.9	)		(35.2	)		(106.9	)
Operating (loss) earnings	$	(4.1	)	$	1.6		$	(64.9	)	$	(135.3	)

The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and therefore asset, depreciation and amortization, or capital expenditure by segment information is not provided to our chief operating decision maker.

11. Contingencies

Legal Proceedings

We are subject to legal claims and litigation arising in the ordinary course of business, such as employment or intellectual property claims, including the matters described below. We are unable to determine the likelihood of an unfavorable outcome against us and are unable to reasonably estimate a range of loss, if any.

Fujitsu Network Communications Inc. v. Tellabs, Inc. On January 28, 2008, Fujitsu Network Communications, Inc. and Fujitsu Limited filed a complaint in the United States District Court for the Eastern District of Texas against Tellabs in a case captioned Fujitsu Network Communications, Inc. and Fujitsu Limited v. Tellabs, Inc. and Tellabs Operations, Inc., Civil Action No. 6:08-cv-00022-LED. The complaint alleges infringement of U.S. Patent Nos. 5,526,163 (‘163 patent), 5,521,737 (‘737 patent), 5,386,418 (‘418 patent) and 6,487,686 (‘686 patent), and seeks unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. The case was thereafter transferred to the United States District Court for the Northern District of Illinois (Case No. 1:09-cv-04530). As to Fujitsu’s ‘686 patent, on November 4, 2010, the Court dismissed with prejudice Fujitsu’s claim for infringement of the patent and Fujitsu signed a covenant not to sue Tellabs for infringement of the patent as to any Tellabs products as they currently exist or existed in the past. As to Fujitsu’s ‘418 patent, on March 31, 2011, the Court denied Tellabs’ motion for summary judgment of invalidity based on indefiniteness and granted Fujitsu’s motion for summary judgment for judicial correction of an error in asserted Claim 1. On September 26, 2012, the Court granted a motion by Tellabs for summary judgment of invalidity of all asserted claims of the ‘418 patent, and judgment was entered in favor of Tellabs on its counterclaim for declaratory judgment of invalidity of the patent. Fujitsu’s appeal of this order and judgment was withdrawn and the appeal dismissed. As to Fujitsu’s ‘737 patent, on September 27, 2012, the Court denied a motion by Tellabs for summary judgment of invalidity. A trial date of January 14, 2013 had been set by the Court to commence trial of Fujitsu’s ‘163 and ‘737 patents, however on November 1, 2012, the scheduled trial date was struck from the Court’s calendar in favor of an alternative trial date to be later determined. On December 21, 2012, the Court granted a motion by Tellabs for summary judgment on lost profits damages, and as a result Fujitsu Limited is precluded from pursuing the theory of lost profits. Tellabs contests any liability and will continue to vigorously defend itself accordingly. On May 14, 2013, the Court set a jury trial on Fujitsu’s ‘163 and ‘737 patents for February 24, 2014, and on May 15, 2013, the Court consolidated Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229 for purposes of trial of Fujitsu’s ‘163 and ‘737 patents. On May 23, 2013, the Court issued an Amended Memorandum Opinion and Order granting Tellabs’ motion for summary judgment on lost profits damages, which Fujitsu is appealing to the U.S. Court of Appeals for the Federal Circuit (docketed June 4, 2013, as Fujitsu Limited v. Tellabs, Inc., Misc. No. 154).

Tellabs Operations, Inc. v. Fujitsu Limited and Fujitsu Network Communications Inc. On June 11, 2008, Tellabs Operations, Inc. filed a complaint in the United States District Court for the Northern District of Illinois against Fujitsu Limited and Fujitsu Network Communications, Inc. in a case captioned Tellabs Operations, Inc. v. Fujitsu Limited and Fujitsu Network Communications, Inc. Civil Action No. 1:08-cv-3379. The complaint alleged infringement of Tellabs Operations, Inc.’s U.S. Patent No. 7,369,772 (‘772 patent), and sought unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. Fujitsu Limited brought counterclaims alleging infringement of two U.S.

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patents, namely U.S. Patent Nos. 5,533,006 (‘006 patent) and 7,227,681 (‘681 patent), seeking unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. On March 31, 2011, the Court issued an Order granting Tellabs’ motion for summary judgment of invalidity of all claims of Fujitsu’s ’006 patent. As to Tellabs’ ‘772 patent, Fujitsu pursued an inter partes reexamination of the patent in the Patent Office which resulted in a December 12, 2011, decision by the Board of Patent Appeals and Interferences (BPAI) to reverse the Examiner’s decision to not reject the claims of the patent, as well as a January 9, 2013, BPAI decision affirming the Examiner’s rejection of amended claims of the patent. On February 14, 2013, Tellabs moved to dismiss all claims related to the ‘772 patent. As to Fujitsu’s ‘681 patent, in July, 2012, the Court denied a Tellabs’ motion for summary judgment of invalidity and granted Fujitsu’s motion for summary judgment finding no inequitable conduct. Trial on Fujitsu’s ’681 patent commenced on August 27, 2012, and concluded on September 7, 2012, whereupon the jury’s verdict the Court entered judgment in favor of Tellabs on Fujitsu’s claim for infringement of the ‘681 patent and in favor of Fujitsu on Tellabs’ claim for invalidity of the same patent, and the parties’ respective post-trial motions were denied by the Court on January 24, 2013. Both Tellabs and Fujitsu are appealing the denial of post-trial motions related to the ‘681 patent. On February 19, 2013, the Court granted Tellabs’ motion to dismiss claims related to Tellabs’ ‘772 patent and terminated Civil Action No. 1:08-cv-3379.

Fujitsu Limited v. Tellabs, Inc. On April 30, 2012, Fujitsu Limited filed a complaint in the United States District Court for the Northern District of Illinois against Tellabs in a case captioned Fujitsu Limited v. Tellabs Operations, Inc., Tellabs, Inc., and Tellabs North America, Inc., Civil Action No. 1:12-cv-03229. The complaint alleges infringement of U.S. Patent Nos. 5,526,163 (‘163 patent), 5,521,737 (‘737 patent), 5,386,418 (‘418 patent) and 7,227,681 (‘681 patent), the same patents at issue in Civil Action Nos. 1:09-cv-04530 and 1:08-cv-3379, and seeks unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. The complaint includes allegations of infringement that Fujitsu previously sought unsuccessfully to add to Civil Action Nos. 1:09-cv-04530 and 1:08-cv-3379. On June 4, 2012, the Tellabs defendants filed a motion to dismiss the Complaint pursuant to Fed. R. Civ. P. 12(B)(6), which the Court granted in part and denied in part on January 30, 2013. On May 1, 2013, the Tellabs defendants answered Fujitsu’s complaint, and asserted counterclaims against Fujitsu Limited and Fujitsu Network Communications, Inc. On May 14, 2013, the Court set a jury trial on Fujitsu’s ‘163 and ‘737 patents for February 24, 2014, and on May 15, 2013, the Court consolidated Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229 for purposes of trial of Fujitsu’s ‘163 and ‘737 patents. On Tellabs’ motion the Court, on June 25, 2013, dismissed with prejudice Fujitsu’s claims of infringement of Fujitsu’s ‘418 patent.

Fujitsu Limited v. Tellabs, Inc. On July 12, 2013, Fujitsu Limited filed a complaint in the United States District Court for the Northern District of Illinois against Tellabs in a case captioned Fujitsu Limited v. Tellabs Operations, Inc., Tellabs, Inc., and Tellabs North America, Inc., Civil Action No. 1:13-cv-04991. The complaint alleges infringement of U.S. Patent Nos. 5,526,163 ( ‘163 patent) and 5,521,737 (‘737 patent), two of the same patents at issue in Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229, and seeks unspecified damages including enhanced damages, as well as interests, costs and other remedies including injunctive relief. The complaint includes allegations of infringement that Fujitsu previously sought unsuccessfully to add to Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229. The Tellabs defendants’ response to the complaint is currently due August 2, 2013. On July 24, 2013, Fujitsu filed a first amended complaint that removes allegations of continuing infringement as well as Fujitsu’s prior request for injunctive relief relative to the expired ‘163 and ‘737 patents. The Tellabs defendants’ response to the first amended complaint is currently due no earlier than August 14, 2013.

Telcordia Technologies Inc. v. Tellabs, Inc. On May 4, 2009, Telcordia Technologies, Inc. filed a complaint against Tellabs in the United States District Court for the District of New Jersey in a case captioned Telcordia Technologies Inc. v. Tellabs, Inc., Civil Action No. 2:09-cv-02089. The complaint alleges infringement of U.S. Patent Nos. 4,893,306, 4,835,763 and Re. 36,633, and seeks unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. On July 27, 2009, Telcordia filed a first amended complaint adding Tellabs Operations, Inc. and Tellabs North America, Inc. as additional defendants. On December 15, 2009, the Court granted Tellabs’ motion to transfer, which resulted in a transfer of the action to the United States District Court for the District of Delaware (Case No. 1:2009cv00978). On April 12, 2013, after a period of inactivity in the case, the Court closed the case with a Docket Text that reads: “Case Closed.”

Cheetah Omni, LLC v. Alcatel-Lucent USA Inc. et al. On July 29, 2011, a complaint was filed in the United States District Court for the Eastern District of Texas, Tyler Division, against Tellabs and several other companies in a case captioned Cheetah Omni LLC v. Alcatel-Lucent USA Inc. et al., Civil Action No. 6:11cv390. The complaint includes allegations of infringement by Tellabs, Inc., Tellabs Operations, Inc., and Tellabs North America, Inc., of U.S. Patent Nos. 6,888,661; 6,847,479; 6,856,459; and 6,940,647, and seeks unspecified damages, as well as interest, costs, disbursements, attorney fees and other remedies including injunctive relief. The accused products include products from the Tellabs 7100 product line. On December 5, 2012, the Court entered an order staying the proceedings with respect to US Patents 6,888,661 and 6,847,479 until such time as an injunction issued by the Court of the Eastern District of Michigan in a separate action involving the two patents is lifted. The parties are in discovery, and a Markman hearing was held on February 14, 2013, and on April 11, 2013, the Court issued an order that construes disputed claim language of various patents in suit. A trial date has been set for March 10, 2014.

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Internet Machines LLC v. Avnet, Inc., et al. On February 13, 2012, a second amended complaint was filed in the United States District Court for the Eastern District of Texas, Tyler Division, naming Tellabs, Inc. among several defendants in a case captioned Internet Machines LLC v. Avnet, Inc., et al., Civil Action Nos. 6:10-CV-548-MHS and 6:11-CV-250-MHS (Consolidated). The plaintiff thereafter filed a third amended complaint on March 2, 2012. The amended complaints allege infringement of U.S. Patent Nos. 7,454,552, 7,421,532, 7,814,259 and 7,945,722, and seek unspecified damages including enhanced damages, as well as interest, costs, expenses, attorney fees and other remedies including injunctive relief. On March 27, 2012, Tellabs filed its answer, defenses and counterclaims in response to the third amended complaint. On September 4, 2012, the Court issued an Order granting a motion by the defendants to stay the litigation, whereby the litigation is stayed pending entry of a final non-appealable judgment in a prior proceeding in which Tellabs is not named (Internet Machines LLC v. Alienware Corp., No 6:10-cv-23 (E.D. Tex. Filed Feb. 2, 2010)).

Cirrex Sys., LLC v. Verizon Communications Inc., et al. On May 22, 2013, a complaint was filed in the United States District Court for the District of Delaware, naming Tellabs, Inc., Tellabs Operations, Inc., and Tellabs North America, Inc., among several defendants in a case captioned Cirrex Sys., LLC v. Verizon Communications Inc., et al., Civil Action No. 1:13-cv-00921-UNA. The complaint alleges infringement of U.S. Patent No. 6,404,953, and seeks unspecified damages including supplemental damages, as well as interest and other remedies including injunctive relief. On July 19, 2013, plaintiff filed a first amended complaint that contains additional allegations of infringement directed to co-defendant Verizon Communications Inc. under U.S. Patent Nos. 6,208,783 and 6,222,970. The Tellabs defendants’ response to the complaint is currently due August 19, 2013.

Mahmood Alizadeh v. Tellabs, Inc., et al. and Lawrence Sasala v. Tellabs, Inc., et al. Beginning on January 23, 2013, two purported stockholder class action lawsuits were filed in the United States District Court for the Northern District of Illinois, against Tellabs, Inc. and certain of our former officers alleging violations of the federal securities laws. The lawsuits were consolidated and the court appointed co-lead plaintiffs and co-lead counsel. Plaintiffs filed an amended complaint on June 3, 2013, which purports to bring claims on behalf of those who purchased the Company’s publicly traded securities between June 9, 2010, and April 26, 2011. Plaintiffs allege that defendants made false and misleading statements regarding the Company’s revenues and prospects, and seek unspecified compensatory damages and other relief. The Company filed a motion to dismiss on July 24, 2013. The Company believes these claims are without merit and intends to defend the actions vigorously.

John Nicholas v. Michael J. Birck, et al. On March 19, 2013, a shareholder derivative complaint was filed in the United States District Court for the Northern District of Illinois against current and former officers and directors of the Company alleging breaches of fiduciary duties, insider trading and unjust enrichment between October 26, 2010, and July 27, 2012. The Company is named as a nominal defendant. The Plaintiff seeks to recover unspecified damages on behalf of the Company and other relief. The lawsuit has been stayed by the court pending the outcome of the motion to dismiss in the consolidated Alizadeh stockholder class action lawsuit.

Apart from the matters described above, we are and in the future may be subject to various legal proceedings, claims and litigation arising in the ordinary course of business. Such claims may include indemnification and/or other obligations on the part of Tellabs relative to infringement assertions brought by third parties against our customers or partners, and relative to commercial assertions brought by our customers or partners.

The proceedings described above, including the Fujitsu matters, the Telcordia matter, the Cheetah Omni matter, the Internet Machines matter, the Cirrex Systems matter, the stockholder class action matters and the shareholder derivative complaint, involve costly litigation and may result in diverting management’s time, attention and resources, delaying or halting product shipments or services delivery, requiring us to pay amounts in any damages and/or settlements, requiring us to enter into royalty-bearing licensing arrangements or to obtain substitute technology of lower quality or higher costs, and otherwise imposing obligations or restrictions on us and our business. We may be unsuccessful in any such litigation, despite the time, money, energy and bases for our assertion and/or defense of the matters. We may also be unable, if necessary, to enter into licensing arrangements or to obtain substitute technology on commercially reasonable terms or any terms. Any such settlements or inability to prevail or mitigate any liability or to obtain such licensing arrangements or substitute technology may adversely affect our business, financial condition and operating results.

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12. Stock Repurchase Programs

We repurchase outstanding common stock under two plans authorized by our Board of Directors. In addition, we purchase shares to cover withholding taxes on shares issued under employee stock plans.

We intend to use cash generated by employee stock option exercises (other than those of Company officers and board members) to repurchase stock through the use of a 10b5-1 plan. These purchases were negligible in the second quarter and first six months of 2013 under this plan.

As of June 28, 2013, we have purchased 70.4 million shares of our common stock under the $600 million repurchase plan at a total cost of $405.7 million, leaving $194.3 million available to be purchased under this plan. We purchased 2.3 million shares for $4.6 million in the second quarter of 2013, and 13.8 million shares for $30.3 million in the first six months of 2013 under this plan.

We may change our repurchase activity and we provide no assurance that we will continue our repurchase activity in the future.

In addition, we purchased 0.1 million shares for $0.2 million in the second quarter of 2013 and 0.7 million shares for $1.5 million in the first six months of 2013 to cover minimum withholding taxes on shares issued under employee stock plans.

We record repurchased shares as Treasury stock.

13. Net Loss Per Share

The following table sets forth the computation of net loss per share:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Numerator:
Net loss	$	(7.8	)	$	(4.7	)	$	(63.7	)	$	(144.5	)
Denominator:
Denominator for basic net loss per share – weighted average shares outstanding		356.1			367.1			357.7			366.4
Effect of dilutive securities:
Employee stock options and restricted and performance stock awards		—			—			—			—
Denominator for diluted net loss per share – adjusted weighted average shares outstanding and assumed conversions		356.1			367.1			357.7			366.4
Net loss per share, basic	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)
Net loss per share, diluted1	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)

¹  Dilutive securities are not included in the computation of diluted earnings per share when a company is in a loss position. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for the second quarter and first six months of 2013 and the second quarter and first six months of 2012 are the same. Diluted weighted average shares outstanding were 356.4 million in the second quarter of 2013, 358.9 million in the first six months of 2013, and 368.1 million in the second quarter of 2012 and 368.2 million in the first six months of 2012.

Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition

Introduction and Overview of Business

Tellabs designs, develops and supports telecommunications networking products. We generate revenue principally through the sale of these products to communications service providers worldwide as both stand-alone network elements and as elements of solutions integrated under a common network management system. We also generate revenue by providing services to our customers.

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We report in four segments: Optical, Data, Access and Services.

Optical segment products are primarily used to manage large volumes of telecommunication traffic in metro areas. The Optical segment includes the Tellabs^® 5000 Series of Digital Cross-Connect systems, the Tellabs^® 6300 Managed Transport System, the Tellabs^® 7100 OTS and the Tellabs^® 7300 Metro Ethernet Switching Series.

Data segment products are primarily used in mobile backhaul applications, and for business services and various edge routing applications. The Data segment includes the Tellabs^® 8100 Managed Access Systems and the Tellabs 8600 and 8800 Smart Routers.

Access segment products are primarily used to enable service providers to bundle Internet, video, and voice over high-speed fiber-based networks and in Optical LAN applications. The Access segment includes the Tellabs^® 1000 and 1100 Multi-service Access systems, and the Tellabs^® 1600 Optical Network Terminals (ONTs).

The Services segment delivers deployment, training, support and professional services to Tellabs’ customers. Through these offerings, Tellabs serves its customers through the phases of planning, deploying and operating a network.

RESULTS OF OPERATIONS

Revenue in the second quarter of 2013 was $212.1 million, compared with $288.1 million in the second quarter of 2012. Our business outside North America continues to be challenged by weakness in Western Europe and regulatory uncertainty in Mexico. As customers migrate to new technologies, revenue from earlier-developed products and services declines and overall corporate profitability suffers. This situation is compounded when customers are slow to adopt our new products and services. In the face of these market conditions, Tellabs is streamlining its costs and operating expenses with the goal of enhancing Tellabs solutions for future revenue growth while achieving nominal profitability.

Net loss in the second quarter of 2013 was $7.8 million or $0.02 per share (basic and diluted), compared with net loss of $4.7 million or $0.01 per share (basic and diluted) in the second quarter of 2012. In the second quarter of 2013, operating expenses included $0.5 million of restructuring and other charges primarily related to the restructuring plan announced in January 2013. Operating expenses during the second quarter of 2012 included $0.9 million of restructuring and other charges primarily related to the restructuring plan announced in January 2012.

Revenue in the first six months of 2013 was $421.5 million, compared with $546.0 million in the first six months of 2012. Net loss in the first six months of 2013 was $63.7 million or $0.18 per share (basic and diluted), compared with net loss of $144.5 million or $0.39 per share (basic and diluted) in the first six months of 2012. Operating expenses during the first six months of 2013 included $35.2 million of restructuring and other charges primarily related to the restructuring plan announced in January 2013. Operating expenses during the first six months of 2012 included $106.9 million of restructuring and other charges primarily related to the restructuring plan announced in January 2012.

Revenue (in millions)

	Second Quarter							Six Months
	2013		2012		Change			2013		2012		Change
Products	$	167.9	$	237.4		(29.3	)%	$	332.9	$	447.1		(25.5	)%
Services		44.2		50.7		(12.8	)%		88.6		98.9		(10.4	)%
Total revenue	$	212.1	$	288.1		(26.4	)%	$	421.5	$	546.0		(22.8	)%

Second quarter 2013 compared with second quarter 2012

Total revenue decreased as revenue declined across each reporting segment. On a geographic basis, revenue from customers in North America (United States and Canada) was $123.4 million (or 58% of total revenue), compared with $137.9 million (or 48% of total revenue). Revenue from customers outside North America was $88.7 million (or 42% of total revenue), compared with $150.2 million (or 52% of total revenue), as we saw lower revenue across all geographic regions outside North America.

First six months 2013 compared with first six months 2012

Total revenue decreased as revenue declined across each reporting segment. On a geographic basis, revenue from customers in North America (United States and Canada) was $246.2 million (or 58% of total revenue), compared with $264.5 million (or 48% of total revenue). Revenue from customers outside North America was $175.3 million (or 42% of total revenue), compared with $281.5 million (or 52% of total revenue), as we saw lower revenue across all geographic regions outside North America.

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Gross Margin

	Second Quarter									Six Months
	2013			2012			% Point Change			2013			2012			% Point Change
Products		39.1	%		41.0	%		(1.9	)		37.2	%		39.9	%		(2.7	)
Services		33.0	%		33.1	%		(0.1	)		32.5	%		31.9	%		0.6
Consolidated		37.8	%		39.6	%		(1.8	)		36.2	%		38.4	%		(2.2	)

In the second quarter and first six months of 2013, products gross margins declined compared with the year-ago periods, primarily as a result of the lower level of Data and Optical segment revenue. Services gross margins in the second quarter of 2013 were basically consistent with the year-ago period. Services gross margins improved in the first six months of 2013, compared with the year-ago period. The increase was driven primarily by reduced services costs.

Operating Expenses (in millions)

	Second Quarter							Percent of Revenue
	2013		2012		Change			2013			2012
Research and development	$	41.9	$	58.8	$	(16.9	)		19.8	%		20.4	%
Sales and marketing		23.2		32.2		(9.0	)		10.9	%		11.2	%
General and administrative		17.7		19.7		(2.0	)		8.3	%		6.8	%
Subtotal		82.8		110.7		(27.9	)		39.0	%		38.4	%
Intangible asset amortization		1.0		1.0		—
Restructuring and other charges		0.5		0.9		(0.4	)
Total operating expenses	$	84.3	$	112.6	$	(28.3	)
	Six Months							Percent of Revenue
	2013		2012		Change			2013			2012
Research and development	$	94.6	$	125.7	$	(31.1	)		22.4	%		23.0	%
Sales and marketing		50.2		68.6		(18.4	)		11.9	%		12.6	%
General and administrative		35.3		40.8		(5.5	)		8.4	%		7.5	%
Subtotal		180.1		235.1		(55.0	)		42.7	%		43.1	%
Intangible asset amortization		2.1		3.2		(1.1	)
Restructuring and other charges		35.2		106.9		(71.7	)
Total operating expenses	$	217.4	$	345.2	$	(127.8	)

Operating expenses decreased in the second quarter of 2013, compared with the year ago period, primarily due to lower research and development, sales and marketing, and general and administrative expenses as we continue to see the benefit of restructuring and other cost-reduction activities. Excluding intangible asset amortization and restructuring and other charges, operating expenses in the second quarter of 2013 were $82.8 million, down $27.9 million from $110.7 million in the second quarter of 2012. Restructuring and other charges are due to severance ($0.4 million) and facility-and asset-related charges ($0.1 million).

Operating expenses decreased in the first six months of 2013, compared with the year ago period, primarily due to lower restructuring and other charges and lower research and development, sales and marketing, and general and administrative expenses as we continue to see the benefit of restructuring and other cost-reduction activities. Excluding intangible asset amortization and restructuring and other charges, operating expenses in the first six months of 2013 were $180.1 million, down $55.0 million from $235.1 million in the first six months of 2012. Restructuring and other charges are due to severance ($16.2 million) and facility-and asset-related charges ($19.0 million).

Other Income (in millions)

	Second Quarter									Six Months
	2013			2012			Change			2013		2012			Change
Interest income, net	$	0.5		$	1.6		$	(1.1	)	$	1.2	$	3.4		$	(2.2	)
Other expense, net		(1.2	)		(1.1	)		(0.1	)		—		(2.1	)		2.1
Total other (expense) income	$	(0.7	)	$	0.5		$	(1.2	)	$	1.2	$	1.3		$	(0.1	)

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Interest income was down in the second quarter and first six months of 2013, compared with same periods in 2012, due to lower interest rates and lower investment balances. In the second quarter of 2013, other expense, net primarily consisted of costs related to hedging foreign currency exposures and losses on sales of marketable securities. For the first six months of 2013 and 2012, other expense, net primarily consisted of costs related to hedging foreign currency exposures.

Income Taxes

In the second quarter of 2013, we reported tax expense of $3.0 million, compared with $6.8 million in the second quarter of 2012. For the first six months of 2013, we reported zero tax expense, compared with tax expense of $10.5 million in the first six months of 2012. Lower earnings from foreign operations drove the decline in tax expense in the second quarter of 2013 and the first six months of 2013, compared with the year-ago periods. Because we continue to maintain a valuation allowance against our domestic deferred tax assets, no tax benefit was recorded on losses from domestic operations. Tax expense in the second quarter of 2013 includes $0.7 million resulting from an increase in our domestic valuation allowance.

Segment Revenue (in millions)

	Second Quarter							Six Months
	2013		2012		Change			2013		2012		Change
Optical	$	112.7	$	122.4		(7.9	)%	$	205.8	$	226.8		(9.3	)%
Data		35.8		77.7		(53.9	)%		68.7		147.1		(53.3	)%
Access		19.4		37.3		(48.0	)%		58.4		73.2		(20.2	)%
Services		44.2		50.7		(12.8	)%		88.6		98.9		(10.4	)%
Total revenue	$	212.1	$	288.1		(26.4	)%	$	421.5	$	546.0		(22.8	)%

Segment Profit (Loss)* (in millions)

	Second Quarter								Six Months
	2013			2012		Change			2013			2012		Change
Optical	$	25.4		$	29.0		(12.4	)%	$	38.2		$	43.8		(12.8	)%
Data		(2.5	)		5.4		NM			(17.3	)		0.4		NM
Access		1.3			6.0		(78.3	)%		9.5			12.4		(23.4	)%
Services		14.8			17.2		(14.0	)%		29.4			32.4		(9.3	)%
Total segment profit	$	39.0		$	57.6		(32.3	)%	$	59.8		$	89.0		(32.8	)%

* We define segment profit (loss) as gross profit less research and development expenses. Segment profit (loss) excludes sales and marketing expenses, general and administrative expenses, the amortization of intangibles, restructuring and other charges, and the impact of equity-based compensation.

Second quarter 2013 compared with second quarter 2012

Optical

Revenue from the Optical segment was $112.7 million, compared with $122.4 million. Within this segment, increased revenue from the Tellabs^® 7100 optical transport systems was more than offset by lower revenue from the Tellabs^® 6300 managed transport systems and the Tellabs^® 5000 digital cross-connect systems. Optical segment profit was $25.4 million, compared with $29.0 million. The decline in Optical segment profitability was primarily driven by the lower level of revenue from the Tellabs^® 6300 managed transport systems and the Tellabs^® 5000 digital cross-connect systems.

Data

Revenue from the Data segment was $35.8 million, compared with $77.7 million, primarily on lower revenue from the Tellabs^® 8600 and 8800 smart routers and the Tellabs^® 8100 managed access systems. Data segment loss, driven primarily by the lower revenue level and lower gross margins, was $2.5 million, compared with segment profit of $5.4 million.

Access

Revenue from the Access segment was $19.4 million, compared with $37.3 million. The decrease in segment revenue was driven primarily by lower revenue from the Tellabs^® 1600 single-family ONTs. Access segment profit, driven primarily by the lower level of revenue and lower product gross margins, was $1.3 million, compared with $6.0 million.

Services Segment

Revenue from the Services segment was $44.2 million, compared with $50.7 million. The decline in segment revenue was driven primarily by lower deployment, support agreement and professional services revenue. Services segment profit was $14.8 million, compared with $17.2 million. The decrease in segment profit was driven primarily by the lower level of revenue from support agreements and professional services.

26

First six months 2013 compared with first six months 2012

Optical

Revenue from the Optical segment was $205.8 million, compared with $226.8 million. Within this segment, increased revenue from the Tellabs^® 7100 optical transport systems was more than offset by lower revenue from the Tellabs^® 6300 managed transport systems and the Tellabs^® 5000 digital cross-connect systems. Optical segment profit was $38.2 million, compared with $43.8 million. The decline in optical segment profitability was primarily driven by the lower level of revenue from the Tellabs^® 6300 managed transport systems and the Tellabs^® 5000 digital cross-connect systems, which more than offset increased product gross margins.

Data

Revenue from the Data segment was $68.7 million, compared with $147.1 million, primarily on lower revenue from the Tellabs^® 8100 managed access systems and the Tellabs^® 8600 and 8800 smart routers. Data segment loss, driven primarily by the lower overall revenue level and lower gross margins, was $17.3 million, compared with segment profit of $0.4 million.

Access

Revenue from the Access segment was $58.4 million, compared with $73.2 million. The decrease in segment revenue was driven primarily by lower revenue from the Tellabs^® 1600 single-family ONTs. Access segment profit, driven primarily by the lower level of revenue that more than offset improved product gross margins, was $9.5 million, compared with $12.4 million.

Services Segment

Revenue from the Services segment was $88.6 million, compared with $98.9 million. The decline in segment revenue was driven primarily by lower deployment, support agreement and professional services revenue. Services segment profit was $29.4 million, compared with $32.4 million. The decrease in segment profit was driven primarily by the lower level of revenue from support agreements and professional services.

Financial Condition, Liquidity & Capital Resources

Our principal source of liquidity consists of cash, cash equivalents and marketable securities of $541.7 million as of June 28, 2013, which decreased by $62.7 million since year-end 2012. We used $22.2 million in cash from operations during the first six months of 2013, of which $23.5 million was related to cash restructuring payments. We repurchased 2.3 million shares of common stock at a cost of $4.6 million during the second quarter of 2013, and 13.8 million shares of common stock at a cost of $30.3 million during the first six months of 2013. Of the total cash, cash equivalents and marketable securities, as of June 28, 2013, $126.2 million was held by subsidiaries outside the United States.

We repatriated $376.8 million of our cash held by non-U.S. subsidiaries during the first six months of 2013. Except for withholding taxes of $1.1 million, we expect net operating loss carryforwards and foreign tax credits to offset any remaining cash tax liability related to the repatriation. We anticipate that future foreign earnings will be deemed to be permanently reinvested, although we could elect to repatriate funds held in one or more foreign jurisdictions. If applicable, withholding taxes could reduce the net amount of any future repatriation, and we could be required to accrue and remit applicable U.S. income taxes to the extent a tax liability results after utilization of net operating loss carryforwards and available tax credits.

We believe that our investments are highly liquid instruments. We may rebalance the portfolio from time to time, which may affect the duration, credit structure, liquidity and future income of investments.

Based on historical performance and current forecasts, we believe the company’s cash, cash equivalents and marketable securities will satisfy working capital needs, capital expenditures and other liquidity requirements related to existing operations for the next 12 months. Future available sources of working capital, including cash, cash equivalents, and marketable securities, cash generated from future operations, short-term or long-term financing, equity offerings or any combination of these sources, should allow us to meet our long-term liquidity needs. Current policy is to use cash, cash equivalents and marketable securities to fund business operations, to expand business, potentially through acquisitions, to repurchase common stock and to potentially pay a cash dividend.

GAAP Sequential Comparisons

We believe that comparing some quarterly Statement of Operations data on a sequential basis provides important supplemental information to management and investors regarding financial and business trends relating to our financial results. Commonly compared sequential comparisons of GAAP data include total revenue, geographic revenue split, and segment revenue and profit.

27

Second quarter 2013 compared with first quarter 2013

Total revenue was $212.1 million, up 1.3% from $209.4 million, as increased revenue in the Optical and Data segments more than offset flat revenue in the Services segment and lower revenue in the Access segment. Revenue from customers in North America was $123.4 million (or 58% of total revenue), compared with $122.8 million (or 59% of total revenue). Revenue from customers outside North America was $88.7 million, (or 42% of total revenue), compared with $86.6 million (or 41% of total revenue) as increased revenue in the Europe, Middle East and Africa region and the Latin American Caribbean region more than offset lower revenue in the Asia Pacific region.

Optical

Revenue from the Optical segment was $112.7 million, up 21.1% from $93.1 million. The increase in segment revenue was driven primarily by the Tellabs^® 7100 optical transport systems. Optical segment profit, driven by the higher level of product revenue and gross margins, was $25.4 million, up 98.4% from $12.8 million.

Data

Revenue from the Data segment was $35.8 million, up 8.8% from $32.9 million, primarily on increased revenue from the Tellabs^® 8600 and 8800 smart routers and the Tellabs^® 8100 managed access systems. Data segment loss, driven primarily by the lower level of research and development expense and lower manufacturing costs, decreased to $2.5 million compared with segment loss of $14.8 million.

Access

Revenue from the Access segment was $19.4 million, compared with $39.0 million. The decrease in segment revenue was driven primarily by lower revenue from the Tellabs^® 1600 single-family ONTs. Access segment profit was $1.3 million, compared with $8.2 million. The decline in Access segment profit was driven primarily by lower revenue and product gross margins.

Services

Revenue from the Services segment was $44.2 million, compared with $44.4 million. The decrease in segment revenue was driven primarily by the lower level of deployment services revenue. Services segment profit, driven primarily by the lower level of deployment services revenue, which is less profitable than other services offerings, was $14.8 million, up from $14.6 million.

Non-GAAP Financial Measures and Comparisons

We believe that comparing some quarterly non-GAAP financial measures on a sequential basis provides important supplemental information to management and investors regarding financial and business trends relating to our financial results. Commonly compared non-GAAP financial data includes gross profit as a percentage of revenue, operating expenses, operating earnings, net earnings and net earnings per share. A complete reconciliation between non-GAAP financial measures and the GAAP financial measures, along with an explanation of why we believe non-GAAP measures to be of value to management and investors, is contained in the Reconciliation of Non-GAAP Adjustments on pages 29 through 31.

Second quarter 2013 compared with first quarter 2013

Non-GAAP gross profit margin was 38.0%, up from 34.8%. The increase in non-GAAP gross profit margin was driven primarily by improved product mix and lower manufacturing costs.

Non-GAAP operating expenses were $81.2 million, down from $94.8 million, as we continued to see the impact of restructuring and other cost-reduction activities.

Non-GAAP operating loss, driven by lower operating expenses, higher gross margins and revenue decreased to $0.6 million, compared with operating loss of $21.9 million.

Driven primarily by lower operating expenses, higher gross margins and revenue, non-GAAP net loss was reduced to $0.9 million or zero earnings per share per share (basic and diluted), compared with net loss of $13.6 million or $0.04 per share (basic and diluted).

28

TELLABS, INC.

RECONCILIATION OF NON-GAAP ADJUSTMENTS (1)

(Unaudited)

	Quarter Ended						Six Months Ended
	6/28/13			6/29/12			6/28/13			6/29/12
In millions, except per-share data
Gross Profit Reconciliation (GAAP / non-GAAP)
GAAP gross profit	$	80.2		$	114.2		$	152.5		$	209.9
Equity-based compensation - products (a)		0.2			0.3			0.4			0.6
Equity-based compensation - services (a)		0.2			0.4			0.6			0.9
Total adjustments related to gross profit		0.4			0.7			1.0			1.5
Non-GAAP gross profit	$	80.6		$	114.9		$	153.5		$	211.4
Non-GAAP gross profit percentage		38.0	%		39.9	%		36.4	%		38.7	%
Non-GAAP gross profit percentage - products		39.2	%		41.2	%		37.3	%		40.0	%
Non-GAAP gross profit percentage - services		33.5	%		33.9	%		33.2	%		32.8	%
Operating Expenses Reconciliation (GAAP / non-GAAP)
GAAP operating expenses	$	84.3		$	112.6		$	217.4		$	345.2
Equity-based compensation - research and development (a)		0.3			1.5			0.9			3.3
Equity-based compensation - sales and marketing (a)		0.3			0.8			0.8			1.7
Equity-based compensation - general and administrative (a)		1.0			2.0			2.4			4.0
Intangible asset amortization (b)		1.0			1.0			2.1			3.2
Restructuring and other charges (c), (d)		0.5			0.9			35.2			106.9
Total adjustments related to operating expenses		3.1			6.2			41.4			119.1
Non-GAAP operating expenses	$	81.2		$	106.4		$	176.0		$	226.1
Operating Loss Reconciliation (GAAP / non-GAAP)
GAAP operating loss	$	(4.1	)	$	1.6		$	(64.9	)	$	(135.3	)
Total adjustments related to gross profit		0.4			0.7			1.0			1.5
Total adjustments related to operating expenses		3.1			6.2			41.4			119.1
Non-GAAP operating loss	$	(0.6	)	$	8.5		$	(22.5	)	$	(14.7	)
Non-GAAP operating loss as a percentage of revenue		-0.3	%		3.0	%		-5.3	%		-2.7	%
Net Loss Reconciliation (GAAP / non-GAAP)
GAAP net loss	$	(7.8	)	$	(4.7	)	$	(63.7	)	$	(144.5	)
Total adjustments related to gross profit		0.4			0.7			1.0			1.5
Total adjustments related to operating expenses		3.1			6.2			41.4			119.1
Income tax effect (e)		3.4			4.0			6.8			14.8
Non-GAAP net loss	$	(0.9	)	$	6.2		$	(14.5	)	$	(9.1	)
Non-GAAP net loss per share - basic	$	—		$	0.02		$	(0.04	)	$	(0.02	)
Non-GAAP net loss per share - diluted	$	—		$	0.02		$	(0.04	)	$	(0.02	)

(1) Reconciliation of non-GAAP Adjustments

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), Tellabs, Inc. has provided non-GAAP financial measures as additional information to evaluate our operating performance. These operating performance measures have not been prepared in accordance with GAAP and may be different from measures used by other companies. Whenever we use non-GAAP financial performance measures, we provide a reconciliation of non-GAAP financial performance measures to the most closely applicable GAAP financial performance measure. Management believes the non-GAAP financial performance measures are an important measure of operating performance and provides useful information to investors to better evaluate the operating performance of our business as it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it facilitates comparisons to historical results of operations. Management uses these non-GAAP financial performance measures as supplements to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business as well as for business planning and performance management. Management discloses this information publicly along with a reconciliation of the comparable GAAP amounts, to provide access to the detail and general nature of adjustments made to GAAP financial results. While some of these excluded items have been periodically reported in our statements of operations, including significant restructuring and other charges, their occurrence in future periods depends on future business and economic factors, among other evaluation criteria, and the occurrence of such events and factors may frequently be beyond the control of management.

29

TELLABS, INC.

RECONCILIATION OF NON-GAAP ADJUSTMENTS (1)

(Unaudited)

	Quarter Ended
	6/28/13			3/29/13
In millions, except per-share data
Gross Profit Reconciliation (GAAP / non-GAAP)
GAAP gross profit	$	80.2		$	72.3
Equity-based compensation - products (a)		0.2			0.2
Equity-based compensation - services (a)		0.2			0.4
Total adjustments related to gross profit		0.4			0.6
Non-GAAP gross profit	$	80.6		$	72.9
Non-GAAP gross profit percentage		38.0	%		34.8	%
Non-GAAP gross profit percentage - products		39.2	%		35.3	%
Non-GAAP gross profit percentage - services		33.5	%		32.9	%
Operating Expenses Reconciliation (GAAP / non-GAAP)
GAAP operating expenses	$	84.3		$	133.1
Equity-based compensation - research and development (a)		0.3			0.6
Equity-based compensation - sales and marketing (a)		0.3			0.5
Equity-based compensation - general and administrative (a)		1.0			1.4
Intangible asset amortization (b)		1.0			1.1
Restructuring and other charges (c)		0.5			34.7
Total adjustments related to operating expenses		3.1			38.3
Non-GAAP operating expenses	$	81.2		$	94.8
Operating Loss Reconciliation (GAAP / non-GAAP)
GAAP operating loss	$	(4.1	)	$	(60.8	)
Total adjustments related to gross profit		0.4			0.6
Total adjustments related to operating expenses		3.1			38.3
Non-GAAP operating (loss) earnings	$	(0.6	)	$	(21.9	)
Non-GAAP operating (loss) earnings as a percentage of revenue		-0.3	%		-10.5	%
Net Loss Reconciliation (GAAP / non-GAAP)
GAAP net loss	$	(7.8	)	$	(55.9	)
Total adjustments related to gross profit		0.4			0.6
Total adjustments related to operating expenses		3.1			38.3
Income tax effect (e)		3.4			3.4
Non-GAAP net (loss) earnings	$	(0.9	)	$	(13.6	)
Non-GAAP net (loss) earnings per share - basic	$	—		$	(0.04	)
Non-GAAP net (loss) earnings per share - diluted	$	—		$	(0.04	)

(1) Reconciliation of non-GAAP Adjustments

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), Tellabs, Inc. has provided non-GAAP financial measures as additional information to evaluate our operating performance. These operating performance measures have not been prepared in accordance with GAAP and may be different from measures used by other companies. Whenever we use non-GAAP financial performance measures, we provide a reconciliation of non-GAAP financial performance measures to the most closely applicable GAAP financial performance measure. Management believes the non-GAAP financial performance measures are an important measure of operating performance and provides useful information to investors to better evaluate the operating performance of our business as it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it facilitates comparisons to historical results of operations. Management uses these non-GAAP financial performance measures as supplements to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business as well as for business planning and performance management. Management discloses this information publicly along with a reconciliation of the comparable GAAP amounts, to provide access to the detail and general nature of adjustments made to GAAP financial results. While some of these excluded items have been periodically reported in our statements of operations, including significant restructuring and other charges, their occurrence in future periods depends on future business and economic factors, among other evaluation criteria, and the occurrence of such events and factors may frequently be beyond the control of management.

30

Footnotes to reconciliation of non-GAAP adjustments:

(a) The adjustments to cost of revenue, research and development, sales and marketing, and general and administrative expenses reflect equity-based compensation expense. We exclude these measures when reviewing financial results and for business planning and performance management. We believe that the exclusion of equity-based compensation expense allows for more accurate comparisons of operating results to our peer companies. In addition, we believe this non-cash GAAP measure is not indicative of our fundamental operating performance.

(b) We exclude amortization of intangible assets resulting from acquisitions to evaluate our continuing operational performance. The amortization of purchased intangible assets associated with acquisitions results in recording expense in our GAAP financial statements that were already expensed by the acquired company before the acquisition and for which we have not expended cash. We believe this non-cash GAAP measure is not indicative of our core operating performance. Accordingly, we analyze the performance of operations without regard to such expenses.

(c) We exclude restructuring and other charges because we believe that they are not related directly to the ongoing performance of our fundamental business operations. We exclude these measures when reviewing financial results and for business planning and performance management. Although these events are reflected in our GAAP financials, these transactions may limit the comparability of our fundamental operations with prior and future periods.

(d) In conjunction with the January 30, 2012 Restructuring Plan, we recorded $47.7 million of accelerated amortization for abandoned intangible assets in the first quarter of 2012 related to the mobile packet core technology. We believe this non-cash GAAP measure is not indicative of our core operating performance.

(e) We calculate a separate tax expense and effective tax rate for GAAP and for non-GAAP purposes. For non-GAAP purposes, we use a 32% effective tax rate which represents the projected, long term effective tax rate on non-GAAP pretax income. Our non-GAAP tax rate assumes full use of loss and credit carryforwards without reduction for valuation allowances.

31

Off-Balance Sheet Arrangements

None.

Critical Accounting Policies

There were no material changes in our critical accounting policies during the quarter.

Outlook

We expect third-quarter 2013 revenue to be in a range from $200 million to $220 million. We expect non-GAAP gross margin to be 37%, plus or minus a point or two. We expect third-quarter non-GAAP operating expense to be in the mid $70 million range.

Forward-Looking Statements

This Management’s Discussion and Analysis and other sections of this Form 10-Q, including the statements under the caption “Outlook”, contain forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management’s expectations, estimates and assumptions, based on current and available information at the time the document was prepared. These forward-looking statements include, but are not limited to, statements regarding future events, plans, goals, objectives and expectations. The words “anticipate,” “believe,” “estimate,” “target,” “expect,” “predict,” “plan,” “possible,” “project,” “intend,” “likely,” “will,” “should,” “could,” “may,” “foreseeable,” “would” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause our actual performance or achievements to be materially different from any future results, performance or achievements expressed or implied by those statements. Important factors that could cause our actual results to differ materially from those in forward-looking statements include, but are not limited to: successful expansion into adjacent markets with new and existing products and platforms; product acceptance and profitability; our ability to compete with larger suppliers that can provide end to end solutions; customer concentration; the impact of customer and vendor consolidation; overall negative economic conditions generally and disruptions in credit and capital markets, including specific impacts of these conditions on the telecommunications industry; foreign economic conditions, including currency rate fluctuations; financial condition of telecommunications service providers, equipment vendors and contract manufacturers, including the impact of any bankruptcies; availability of components and critical manufacturing equipment and capacity; product demand and industry capacity; competitive products and pricing; competitive pressures from new entrants to the telecommunications industry; initiatives to improve profitability that may have financial consequences, including further restructuring charges and the ability to realize anticipated savings under such cost-reduction initiatives; exiting businesses and product areas; impairment charges and other cost cutting initiatives and related charges and costs; manufacturing efficiencies; research and new product development; protection of and access to intellectual property, patents and technology; ability to attract and retain highly qualified personnel; the regulatory and trade environment; the impact of new or revised accounting rules or interpretations, including revenue recognition requirements; availability and terms of future acquisitions; divestitures and investments; uncertainties relating to synergies; charges and expenses associated with business combinations and other transactions; and other risks and future factors that may be detailed from time to time in the Company’s filings with the SEC. For a further description of such risks and future factors, see Item 1A of our most recently filed Form 10-K. Our actual future results could differ materially from those predicted in such forward-looking statements. In light of the foregoing risks, uncertainties and other factors, investors are advised not to rely on these forward-looking statements when making investment decisions. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the operations, performance, development and results of our business. We undertake no obligation to publicly update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to future results over time. The foregoing discussion should be read in conjunction with the risk factors, financial statements and related notes and management’s discussion and analysis included in our Annual Report on Form 10-K for the year ended December 28, 2012.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of June 28, 2013, there were no material changes to the market risks disclosure, Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K for the year ended December 28, 2012.

32

Item 4. Controls and Procedures

Our management, under the supervision and with the participation of our Chief Executive Officer and Acting Chief Financial Officer, has evaluated the effectiveness of disclosure controls and procedures as of June 28, 2013. Based on that evaluation, our Chief Executive Officer and Acting Chief Financial Officer concluded that our disclosure controls and procedures are effective. There were no changes during the period covered by this Form 10-Q in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The information set forth under Note 11, Contingencies – Legal Proceedings, to the consolidated financial statements included in Part I, Item 1 of this report is incorporated herein by reference.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A., Risk Factors, in our Annual Report on Form 10-K for the year ended December 28, 2012. The risk factors described in our Annual Report could materially adversely affect our business, financial condition or future results. The risks described in our Annual Report are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently consider immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no other material changes to the risk factors included in our Annual Report for the year ended December 28, 2012.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Repurchases of Common Stock:

Period of Purchases	Total Number of Shares Purchased		Average Purchase Price Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Remaining Dollar Value of Shares Available to be Purchased Under the Programs (In millions) 1
3/30/13 through 5/3/13		2,251,057	$	1.98		2,251,057	$	194.4
5/4/13 through 5/31/13		9,510	$	2.02		9,510	$	194.3
6/1/13 through 6/28/13		41,825	$	2.02		41,825	$	194.3
Total		2,302,392	$	1.98		2,302,392

¹  The amounts in this column represent the remaining amounts under the current $600 million program described below. The Rule 10b5-1 repurchase program described below does not have a repurchase amount limit; therefore, it is not included in the remaining value of shares.

We repurchase outstanding common stock under two plans authorized by our Board of Directors. In addition, we purchase shares to cover withholding taxes on shares issued under employee stock plans.

We intend to use cash generated by employee stock option exercises (other than those of Company officers and board members) to repurchase stock through the use of a 10b5-1 plan. These purchases were negligible in the second quarter and first six months of 2013 under this plan.

As of June 28, 2013, we have purchased 70.4 million shares of our common stock under the $600 million repurchase plan at a total cost of $405.7 million, leaving $194.3 million available to be purchased under this plan. We purchased 2.3 million shares for $4.6 million in the second quarter of 2013, and 13.8 million shares for $30.3 million in the first six months of 2013 under this plan.

We may change our repurchase activity and we provide no assurance that we will continue our repurchase activity in the future.

In addition, we purchased 0.1 million shares for $0.2 million in the second quarter of 2013 and 0.7 million shares for $1.5 million in the first six months of 2013 to cover minimum withholding taxes on shares issued under employee stock plans.

We record repurchased shares as Treasury stock.

33

Item 6. Exhibits

(A) Exhibits

31.1	CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

34

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

TELLABS, INC.
(Registrant)
	/s/ Michael J. Miles
	Michael J. Miles
	Vice President of Finance and Chief Accounting Officer
	(Principal Accounting Officer and duly authorized officer)
	August 1, 2013
	(Date)

35

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel P. Kelly, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tellabs, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 1, 2013

/s/ Daniel P. Kelly

Daniel P. Kelly

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lawrence A. Rieger, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tellabs, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 1, 2013

/s/ Lawrence A. Rieger

Lawrence A. Rieger

Acting Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Tellabs, Inc. (the “Company”) on Form 10-Q for the quarter ended June 28, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel P. Kelly, the Chief Executive Officer of the Company, certify, pursuant to and for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Daniel P. Kelly

Daniel P. Kelly

Chief Executive Officer

Date: August 1, 2013

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Tellabs, Inc. (the “Company”) on Form 10-Q for the quarter ended June 28, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lawrence A. Rieger, the Acting Chief Financial Officer of the Company, certify, pursuant to and for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Lawrence A. Rieger

Lawrence A. Rieger

Acting Chief Financial Officer

Date: August 1, 2013

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Segment Information

6 Months Ended

Jun. 28, 2013

Segment Information

10. Segment Information

We report in four segments: Optical, Data, Access and Services.

Optical segment products are primarily used to manage large volumes of telecommunication traffic in metro areas. The Optical segment includes Tellabs^® 5000 Series of Digital Cross-Connect systems, the Tellabs^® 6300 Managed Transport System, the Tellabs^® 7100 OTS and the Tellabs^® 7300 Metro Ethernet Switching Series.

Data segment products are primarily used in mobile backhaul applications, and for business services and various edge routing applications. The Data segment includes the Tellabs^® 8100 Managed Access Systems and the Tellabs 8600 and 8800 Smart Routers.

Access segment products are primarily used to enable service providers to bundle Internet, video, and voice over high-speed fiber-based networks and in Optical LAN applications. The Access segment includes the Tellabs^® 1000 and 1100 Multi-service Access systems, and the Tellabs^® 1600 Optical Network Terminals (ONTs).

The Services segment delivers deployment, training, support and professional services to Tellabs’ customers. Through these offerings, Tellabs serves its customers through the phases of planning, deploying and operating a network.

We define segment profit (loss) as gross profit less research and development expenses. Segment profit (loss) excludes sales and marketing expenses, general and administrative expenses, the amortization of intangibles, restructuring and other charges, and the impact of equity-based compensation.

Consolidated revenue by segment follows:

	Second Quarter				Six Months
	6/28/13		6/29/12		6/28/13		6/29/12
Optical	$	112.7	$	122.4	$	205.8	$	226.8
Data		35.8		77.7		68.7		147.1
Access		19.4		37.3		58.4		73.2
Services		44.2		50.7		88.6		98.9
Total revenue	$	212.1	$	288.1	$	421.5	$	546.0

Segment profit (loss) and reconciliation to operating loss (earnings) by segment follows:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Optical	$	25.4		$	29.0		$	38.2		$	43.8
Data		(2.5	)		5.4			(17.3	)		0.4
Access		1.3			6.0			9.5			12.4
Services		14.8			17.2			29.4			32.4
Total segment profit	$	39.0		$	57.6		$	59.8		$	89.0
Sales and marketing expenses		(23.2	)		(32.2	)		(50.2	)		(68.6	)
General and administrative expenses		(17.7	)		(19.7	)		(35.3	)		(40.8	)
Equity-based compensation		(0.7	)		(2.2	)		(1.9	)		(4.8	)
Intangible asset amortization		(1.0	)		(1.0	)		(2.1	)		(3.2	)
Restructuring and other charges		(0.5	)		(0.9	)		(35.2	)		(106.9	)
Operating (loss) earnings	$	(4.1	)	$	1.6		$	(64.9	)	$	(135.3	)

The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and therefore asset, depreciation and amortization, or capital expenditure by segment information is not provided to our chief operating decision maker.

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Schedule of Total Equity Based Compensation Expense by Type (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 2.0	$ 4.8	$ 5.1	$ 10.4
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	0.3	0.9	0.9	2.0
Cash-settled SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		(0.2)		(0.1)
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	1.4	2.4	3.5	5.8
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 0.3	$ 1.7	$ 0.7	$ 2.7

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Reclassification adjustment for net (gain) loss included in net loss, tax	$ 0	$ 0.1	$ 0.6	$ 0.1
Unrealized net (loss) gain on available-for-sale securities, tax	$ 0	$ (0.4)	$ 0	$ (0.5)

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Fair Value Measurements

6 Months Ended

Jun. 28, 2013

Fair Value Measurements

3. Fair Value Measurements

Our financial instruments consist of cash equivalents, accounts receivable, accounts payable, marketable securities and derivatives. The carrying value of the cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair value because of their short-term nature. We determine the fair value of marketable securities and derivatives based on observable inputs such as quoted prices in active markets, or other than quoted prices in active markets, that are observable either directly or indirectly.

Fair value is measured as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows:

• Level 1 - Observable inputs, such as quoted prices in active markets;

• Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

• Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. In determining fair value for recurring financial assets and liabilities, we separate our financial instruments into three categories: marketable securities, other marketable securities and loan related to other marketable securities, and derivative financial instruments. These assets and liabilities are all valued based on the market approach that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

Marketable Securities

We use a third-party provider to determine fair values of marketable securities. The third-party provider receives market prices for each marketable security from a variety of industry-standard data providers, security master files from large financial institutions and other third-party sources with reasonable levels of price transparency. The third-party provider uses these multiple prices as inputs into a pricing model to determine a weighted average price for each security. Tellabs management compares the third-party pricing with pricing from outside investment managers and other market sources to ensure the third-party pricing is reasonable. We classify U.S. Treasury bills and bonds as Level 1 based upon quoted prices in active markets. All other marketable securities are classified as Level 2 based upon the other than quoted prices with observable market data. The type of instruments valued based upon the observable market data include U.S. government sponsored enterprise (agency) debt obligations, Federal Deposit Insurance Corporation (FDIC)-backed corporate debt obligations, investment grade corporate bonds, state and municipal debt obligations, mortgaged backed debt obligations guaranteed by the Government National Mortgage Association (GNMA), certain FDIC-backed bank certificates of deposit, foreign government debt obligations and foreign corporate debt obligations guaranteed by foreign governments.

Other Marketable Securities and Loan Related to Other Marketable Securities

We classify holdings in other marketable securities (Cisco common stock) and the related loan as Level 1 in the fair value hierarchy. We classify these as Level 1 since they are actively traded through a governed exchange.

Derivative Financial Instruments

Our foreign currency forward contracts are executed as exchange-traded. Market participants can be described as large money center or regional banks. Exchange-traded derivatives typically fall within Level 1 or Level 2 in the fair value hierarchy depending on whether they are deemed to be actively traded or not.

We have elected to value derivatives as Level 2, using observable market data at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted). Key inputs for currency derivatives are the spot rate, interest rates and credit derivative swap spreads. The spot rate for each currency is the same spot rate used for all balance sheet translations at the measurement date. The following values are calculated from commonly quoted intervals available from a third-party financial information provider. Forward points and LIBOR rates are used to calculate a discount rate to apply to assets and liabilities. One-year credit default swap spreads are used to discount derivative assets, all of which have final maturities of less than 12 months. We calculate the discount to the derivative liabilities to reflect the potential credit risk to lenders and have used the spread over LIBOR based on the credit risk of our counterparties. Each asset is individually discounted to reflect our potential credit risk and we have used the spread over LIBOR based on similar credit risk. We do not adjust the fair value for immaterial credit risk.

We have applied a valuation method for financial assets and liabilities consistently during this period and prior periods. The following table sets forth by level within the fair value hierarchy “Financial instruments owned at fair value.” Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and liabilities measured at fair value on a recurring basis are:

			Fair Value Measurements at June 28, 2013
	Balance at 6/28/13		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Investments in marketable securities
U.S. government debt obligations	$	52.0	$	52.0	$	—	$	—
Corporate debt obligations		57.7		—		57.7		—
Mortgaged backed debt obligations guaranteed by GNMA		104.1		—		104.1		—
Certificates of deposit guaranteed by FDIC		1.2		—		1.2		—
Foreign government debt obligations		26.4		—		26.4		—
Foreign corporate debt obligations guaranteed by foreign governments		33.1		—		33.1		—
Subtotal		274.5		52.0		222.5		—
Other marketable securities		244.1		244.1		—		—
Derivative financial instruments		0.7		—		0.7		—
Total assets	$	519.3	$	296.1	$	223.2	$	—
Liabilities
Loan related to other marketable securities	$	244.1	$	244.1	$	—	$	—
Derivative financial instruments		0.2		—		0.2		—
Total liabilities	$	244.3	$	244.1	$	0.2	$	—

			Fair Value Measurements at December 28, 2012
	Balance at 12/28/12		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Investments in marketable securities
U.S. government debt obligations	$	31.1	$	31.1	$	—	$	—
Corporate debt obligations		9.6		—		9.6		—
Mortgaged backed debt obligations guaranteed by GNMA		55.5		—		55.5		—
Certificates of deposit guaranteed by FDIC		1.2		—		1.2		—
Foreign government debt obligations		161.1		—		161.1		—
Foreign corporate debt obligations guaranteed by foreign governments		122.2		—		122.2		—
Subtotal		380.7		31.1		349.6		—
Other marketable securities		195.1		195.1		—		—
Total assets	$	575.8	$	226.2	$	349.6	$	—
Liabilities
Loan related to other marketable securities	$	195.1	$	195.1	$	—	$	—
Derivative financial instruments		0.1		—		0.1		—
Total liabilities	$	195.2	$	195.1	$	0.1	$	—

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 28, 2013

Fair Value of Derivative Instruments in Consolidated Balance Sheet

The fair value of derivative instruments in the Consolidated Balance Sheet as of June 28, 2013, was as follows:

	Asset Derivatives Reported in Miscellaneous Receivables and Other Current Assets		Liability Derivatives Reported in Other Accrued Liabilities
Cash flow hedges	$	0.6	$	—
Balance sheet hedges (Non-designated hedges)		0.1		0.2
Total derivatives	$	0.7	$	0.2

The fair value of derivative instruments in the Consolidated Balance Sheet as of December 28, 2012, was as follows:

	Asset Derivatives Reported in Miscellaneous Receivables and Other Current Assets		Liability Derivatives Reported in Other Accrued Liabilities
Balance sheet hedges (Non-designated hedges)	$	—	$	0.1

Derivatives Designated as Hedging Instrument

Effect Of Derivative Instruments On The Consolidated Statements Of Operations

The effect of derivative instruments designated as hedging instruments on the Consolidated Statements of Operations follows:

	Three Months Ended
	Gain Recognized in Accumulated  OCI, net (Effective Portion)				Gain Recognized in Revenue				(Loss) Gain Recognized in  Other Expense net: Excluded from Effectiveness Testing Gain (Loss)
	6/28/13		6/29/12		6/28/13		6/29/12		6/28/13			6/29/12
Cash flow hedges	$	0.7	$	—	$	0.3	$	—	$	(0.1	)	$	—
Net investment hedges	$	—	$	6.7		N/A		N/A	$	—		$	0.1
	Six Months Ended
	Gain Recognized in Accumulated OCI, net (Effective Portion)				Gain Recognized in Revenue				(Loss) Gain Recognized in Other Expense, net: Excluded from Effectiveness Testing Gain (Loss)
	6/28/13		6/29/12		6/28/13		6/29/12		6/28/13			6/29/12
Cash flow hedges	$	0.7	$	—	$	0.3	$	—	$	(0.1	)	$	—
Net investment hedges	$	—	$	2.5		N/A		N/A	$	—		$	0.2

Derivatives Not Designated as Hedging Instrument

Effect Of Derivative Instruments On The Consolidated Statements Of Operations

The effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations follows:

	Second Quarter					Six Months
	Gain (Loss) Recognized in Other Expense, net 1					Loss Recognized in Other Expense, net 1
	6/28/13		6/29/12			6/28/13			6/29/12
Foreign currency forward and option contracts	$	3.2	$	(2.0	)	$	(4.5	)	$	(0.6	)

¹ The gains or losses from changes in the fair value of the derivative contracts are generally offset by gains or losses of the underlying transactions being hedged.

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Amounts Reclassified from Accumulated Other Comprehensive Income to Net Loss (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense, net	$ (1.2)	$ (1.1)		$ (2.1)
Income tax expense	(3.0)	(6.8)	0	(10.5)
Net Loss	(7.8)	(4.7)	(63.7)	(144.5)
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Net Gain (Loss) on Available-for-Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense, net	(0.1)	0.3	2.6	0.3
Income tax expense		(0.1)	(0.6)
Net Loss	$ (0.1)	$ 0.2	$ 2.0	$ 0.3

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Contingencies

6 Months Ended

Jun. 28, 2013

Contingencies

11. Contingencies

Legal Proceedings

We are subject to legal claims and litigation arising in the ordinary course of business, such as employment or intellectual property claims, including the matters described below. We are unable to determine the likelihood of an unfavorable outcome against us and are unable to reasonably estimate a range of loss, if any.

Fujitsu Network Communications Inc. v. Tellabs, Inc. On January 28, 2008, Fujitsu Network Communications, Inc. and Fujitsu Limited filed a complaint in the United States District Court for the Eastern District of Texas against Tellabs in a case captioned Fujitsu Network Communications, Inc. and Fujitsu Limited v. Tellabs, Inc. and Tellabs Operations, Inc., Civil Action No. 6:08-cv-00022-LED. The complaint alleges infringement of U.S. Patent Nos. 5,526,163 (‘163 patent), 5,521,737 (‘737 patent), 5,386,418 (‘418 patent) and 6,487,686 (‘686 patent), and seeks unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. The case was thereafter transferred to the United States District Court for the Northern District of Illinois (Case No. 1:09-cv-04530). As to Fujitsu’s ‘686 patent, on November 4, 2010, the Court dismissed with prejudice Fujitsu’s claim for infringement of the patent and Fujitsu signed a covenant not to sue Tellabs for infringement of the patent as to any Tellabs products as they currently exist or existed in the past. As to Fujitsu’s ‘418 patent, on March 31, 2011, the Court denied Tellabs’ motion for summary judgment of invalidity based on indefiniteness and granted Fujitsu’s motion for summary judgment for judicial correction of an error in asserted Claim 1. On September 26, 2012, the Court granted a motion by Tellabs for summary judgment of invalidity of all asserted claims of the ‘418 patent, and judgment was entered in favor of Tellabs on its counterclaim for declaratory judgment of invalidity of the patent. Fujitsu’s appeal of this order and judgment was withdrawn and the appeal dismissed. As to Fujitsu’s ‘737 patent, on September 27, 2012, the Court denied a motion by Tellabs for summary judgment of invalidity. A trial date of January 14, 2013 had been set by the Court to commence trial of Fujitsu’s ‘163 and ‘737 patents, however on November 1, 2012, the scheduled trial date was struck from the Court’s calendar in favor of an alternative trial date to be later determined. On December 21, 2012, the Court granted a motion by Tellabs for summary judgment on lost profits damages, and as a result Fujitsu Limited is precluded from pursuing the theory of lost profits. Tellabs contests any liability and will continue to vigorously defend itself accordingly. On May 14, 2013, the Court set a jury trial on Fujitsu’s ‘163 and ‘737 patents for February 24, 2014, and on May 15, 2013, the Court consolidated Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229 for purposes of trial of Fujitsu’s ‘163 and ‘737 patents. On May 23, 2013, the Court issued an Amended Memorandum Opinion and Order granting Tellabs’ motion for summary judgment on lost profits damages, which Fujitsu is appealing to the U.S. Court of Appeals for the Federal Circuit (docketed June 4, 2013, as Fujitsu Limited v. Tellabs, Inc., Misc. No. 154).

Tellabs Operations, Inc. v. Fujitsu Limited and Fujitsu Network Communications Inc. On June 11, 2008, Tellabs Operations, Inc. filed a complaint in the United States District Court for the Northern District of Illinois against Fujitsu Limited and Fujitsu Network Communications, Inc. in a case captioned Tellabs Operations, Inc. v. Fujitsu Limited and Fujitsu Network Communications, Inc. Civil Action No. 1:08-cv-3379. The complaint alleged infringement of Tellabs Operations, Inc.’s U.S. Patent No. 7,369,772 (‘772 patent), and sought unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. Fujitsu Limited brought counterclaims alleging infringement of two U.S. patents, namely U.S. Patent Nos. 5,533,006 (‘006 patent) and 7,227,681 (‘681 patent), seeking unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. On March 31, 2011, the Court issued an Order granting Tellabs’ motion for summary judgment of invalidity of all claims of Fujitsu’s ’006 patent. As to Tellabs’ ‘772 patent, Fujitsu pursued an inter partes reexamination of the patent in the Patent Office which resulted in a December 12, 2011, decision by the Board of Patent Appeals and Interferences (BPAI) to reverse the Examiner’s decision to not reject the claims of the patent, as well as a January 9, 2013, BPAI decision affirming the Examiner’s rejection of amended claims of the patent. On February 14, 2013, Tellabs moved to dismiss all claims related to the ‘772 patent. As to Fujitsu’s ‘681 patent, in July, 2012, the Court denied a Tellabs’ motion for summary judgment of invalidity and granted Fujitsu’s motion for summary judgment finding no inequitable conduct. Trial on Fujitsu’s ’681 patent commenced on August 27, 2012, and concluded on September 7, 2012, whereupon the jury’s verdict the Court entered judgment in favor of Tellabs on Fujitsu’s claim for infringement of the ‘681 patent and in favor of Fujitsu on Tellabs’ claim for invalidity of the same patent, and the parties’ respective post-trial motions were denied by the Court on January 24, 2013. Both Tellabs and Fujitsu are appealing the denial of post-trial motions related to the ‘681 patent. On February 19, 2013, the Court granted Tellabs’ motion to dismiss claims related to Tellabs’ ‘772 patent and terminated Civil Action No. 1:08-cv-3379.

Fujitsu Limited v. Tellabs, Inc. On April 30, 2012, Fujitsu Limited filed a complaint in the United States District Court for the Northern District of Illinois against Tellabs in a case captioned Fujitsu Limited v. Tellabs Operations, Inc., Tellabs, Inc., and Tellabs North America, Inc., Civil Action No. 1:12-cv-03229. The complaint alleges infringement of U.S. Patent Nos. 5,526,163 (‘163 patent), 5,521,737 (‘737 patent), 5,386,418 (‘418 patent) and 7,227,681 (‘681 patent), the same patents at issue in Civil Action Nos. 1:09-cv-04530 and 1:08-cv-3379, and seeks unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. The complaint includes allegations of infringement that Fujitsu previously sought unsuccessfully to add to Civil Action Nos. 1:09-cv-04530 and 1:08-cv-3379. On June 4, 2012, the Tellabs defendants filed a motion to dismiss the Complaint pursuant to Fed. R. Civ. P. 12(B)(6), which the Court granted in part and denied in part on January 30, 2013. On May 1, 2013, the Tellabs defendants answered Fujitsu’s complaint, and asserted counterclaims against Fujitsu Limited and Fujitsu Network Communications, Inc. On May 14, 2013, the Court set a jury trial on Fujitsu’s ‘163 and ‘737 patents for February 24, 2014, and on May 15, 2013, the Court consolidated Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229 for purposes of trial of Fujitsu’s ‘163 and ‘737 patents. On Tellabs’ motion the Court, on June 25, 2013, dismissed with prejudice Fujitsu’s claims of infringement of Fujitsu’s ‘418 patent.

Fujitsu Limited v. Tellabs, Inc. On July 12, 2013, Fujitsu Limited filed a complaint in the United States District Court for the Northern District of Illinois against Tellabs in a case captioned Fujitsu Limited v. Tellabs Operations, Inc., Tellabs, Inc., and Tellabs North America, Inc., Civil Action No. 1:13-cv-04991. The complaint alleges infringement of U.S. Patent Nos. 5,526,163 ( ‘163 patent) and 5,521,737 (‘737 patent), two of the same patents at issue in Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229, and seeks unspecified damages including enhanced damages, as well as interests, costs and other remedies including injunctive relief. The complaint includes allegations of infringement that Fujitsu previously sought unsuccessfully to add to Civil Action Nos. 1:09-cv-04530 and 1:12-cv-03229. The Tellabs defendants’ response to the complaint is currently due August 2, 2013. On July 24, 2013, Fujitsu filed a first amended complaint that removes allegations of continuing infringement as well as Fujitsu’s prior request for injunctive relief relative to the expired ‘163 and ‘737 patents. The Tellabs defendants’ response to the first amended complaint is currently due no earlier than August 14, 2013.

Telcordia Technologies Inc. v. Tellabs, Inc. On May 4, 2009, Telcordia Technologies, Inc. filed a complaint against Tellabs in the United States District Court for the District of New Jersey in a case captioned Telcordia Technologies Inc. v. Tellabs, Inc., Civil Action No. 2:09-cv-02089. The complaint alleges infringement of U.S. Patent Nos. 4,893,306, 4,835,763 and Re. 36,633, and seeks unspecified damages including enhanced damages, as well as attorney fees and other remedies including injunctive relief. On July 27, 2009, Telcordia filed a first amended complaint adding Tellabs Operations, Inc. and Tellabs North America, Inc. as additional defendants. On December 15, 2009, the Court granted Tellabs’ motion to transfer, which resulted in a transfer of the action to the United States District Court for the District of Delaware (Case No. 1:2009cv00978). On April 12, 2013, after a period of inactivity in the case, the Court closed the case with a Docket Text that reads: “Case Closed.”

Cheetah Omni, LLC v. Alcatel-Lucent USA Inc. et al. On July 29, 2011, a complaint was filed in the United States District Court for the Eastern District of Texas, Tyler Division, against Tellabs and several other companies in a case captioned Cheetah Omni LLC v. Alcatel-Lucent USA Inc. et al., Civil Action No. 6:11cv390. The complaint includes allegations of infringement by Tellabs, Inc., Tellabs Operations, Inc., and Tellabs North America, Inc., of U.S. Patent Nos. 6,888,661; 6,847,479; 6,856,459; and 6,940,647, and seeks unspecified damages, as well as interest, costs, disbursements, attorney fees and other remedies including injunctive relief. The accused products include products from the Tellabs 7100 product line. On December 5, 2012, the Court entered an order staying the proceedings with respect to US Patents 6,888,661 and 6,847,479 until such time as an injunction issued by the Court of the Eastern District of Michigan in a separate action involving the two patents is lifted. The parties are in discovery, and a Markman hearing was held on February 14, 2013, and on April 11, 2013, the Court issued an order that construes disputed claim language of various patents in suit. A trial date has been set for March 10, 2014.

Internet Machines LLC v. Avnet, Inc., et al. On February 13, 2012, a second amended complaint was filed in the United States District Court for the Eastern District of Texas, Tyler Division, naming Tellabs, Inc. among several defendants in a case captioned Internet Machines LLC v. Avnet, Inc., et al., Civil Action Nos. 6:10-CV-548-MHS and 6:11-CV-250-MHS (Consolidated). The plaintiff thereafter filed a third amended complaint on March 2, 2012. The amended complaints allege infringement of U.S. Patent Nos. 7,454,552, 7,421,532, 7,814,259 and 7,945,722, and seek unspecified damages including enhanced damages, as well as interest, costs, expenses, attorney fees and other remedies including injunctive relief. On March 27, 2012, Tellabs filed its answer, defenses and counterclaims in response to the third amended complaint. On September 4, 2012, the Court issued an Order granting a motion by the defendants to stay the litigation, whereby the litigation is stayed pending entry of a final non-appealable judgment in a prior proceeding in which Tellabs is not named (Internet Machines LLC v. Alienware Corp., No 6:10-cv-23 (E.D. Tex. Filed Feb. 2, 2010)).

Cirrex Sys., LLC v. Verizon Communications Inc., et al. On May 22, 2013, a complaint was filed in the United States District Court for the District of Delaware, naming Tellabs, Inc., Tellabs Operations, Inc., and Tellabs North America, Inc., among several defendants in a case captioned Cirrex Sys., LLC v. Verizon Communications Inc., et al., Civil Action No. 1:13-cv-00921-UNA. The complaint alleges infringement of U.S. Patent No. 6,404,953, and seeks unspecified damages including supplemental damages, as well as interest and other remedies including injunctive relief. On July 19, 2013, plaintiff filed a first amended complaint that contains additional allegations of infringement directed to co-defendant Verizon Communications Inc. under U.S. Patent Nos. 6,208,783 and 6,222,970. The Tellabs defendants’ response to the complaint is currently due August 19, 2013.

Mahmood Alizadeh v. Tellabs, Inc., et al. and Lawrence Sasala v. Tellabs, Inc., et al. Beginning on January 23, 2013, two purported stockholder class action lawsuits were filed in the United States District Court for the Northern District of Illinois, against Tellabs, Inc. and certain of our former officers alleging violations of the federal securities laws. The lawsuits were consolidated and the court appointed co-lead plaintiffs and co-lead counsel. Plaintiffs filed an amended complaint on June 3, 2013, which purports to bring claims on behalf of those who purchased the Company’s publicly traded securities between June 9, 2010, and April 26, 2011. Plaintiffs allege that defendants made false and misleading statements regarding the Company’s revenues and prospects, and seek unspecified compensatory damages and other relief. The Company filed a motion to dismiss on July 24, 2013. The Company believes these claims are without merit and intends to defend the actions vigorously.

John Nicholas v. Michael J. Birck, et al. On March 19, 2013, a shareholder derivative complaint was filed in the United States District Court for the Northern District of Illinois against current and former officers and directors of the Company alleging breaches of fiduciary duties, insider trading and unjust enrichment between October 26, 2010, and July 27, 2012. The Company is named as a nominal defendant. The Plaintiff seeks to recover unspecified damages on behalf of the Company and other relief. The lawsuit has been stayed by the court pending the outcome of the motion to dismiss in the consolidated Alizadeh stockholder class action lawsuit.

Apart from the matters described above, we are and in the future may be subject to various legal proceedings, claims and litigation arising in the ordinary course of business. Such claims may include indemnification and/or other obligations on the part of Tellabs relative to infringement assertions brought by third parties against our customers or partners, and relative to commercial assertions brought by our customers or partners.

The proceedings described above, including the Fujitsu matters, the Telcordia matter, the Cheetah Omni matter, the Internet Machines matter, the Cirrex Systems matter, the stockholder class action matters and the shareholder derivative complaint, involve costly litigation and may result in diverting management’s time, attention and resources, delaying or halting product shipments or services delivery, requiring us to pay amounts in any damages and/or settlements, requiring us to enter into royalty-bearing licensing arrangements or to obtain substitute technology of lower quality or higher costs, and otherwise imposing obligations or restrictions on us and our business. We may be unsuccessful in any such litigation, despite the time, money, energy and bases for our assertion and/or defense of the matters. We may also be unable, if necessary, to enter into licensing arrangements or to obtain substitute technology on commercially reasonable terms or any terms. Any such settlements or inability to prevail or mitigate any liability or to obtain such licensing arrangements or substitute technology may adversely affect our business, financial condition and operating results.

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Schedule of Stock Option Activity (Detail) (USD $)	6 Months Ended
	Jun. 28, 2013
Shares
Outstanding - beginning of year	16,713,155
Exercised	(470)
Forfeited/expired	(1,037,933)
Outstanding - end of period	15,674,752
Exercisable - end of period	14,547,270
Shares vested or expected to vest	15,603,508
Weighted Average Exercise Price
Outstanding - beginning of year	$ 7.50
Exercised	$ 0.16
Forfeited/expired	$ 7.26
Outstanding - end of period	$ 7.52
Exercisable - end of period	$ 7.75
Shares vested or expected to vest	$ 7.53
Weighted Average Remaining Contractual Term (in years)
Outstanding - end of period	2 years 10 months 24 days
Exercisable - end of period	2 years 6 months
Shares vested or expected to vest	2 years 10 months 24 days
Aggregate Intrinsic Value
Outstanding - end of period
Exercisable - end of period
Shares vested or expected to vest

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Consolidated Revenue by Segment (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Segment Reporting Information [Line Items]
Total revenue	$ 212.1	$ 288.1	$ 421.5	$ 546.0
Optical Segment
Segment Reporting Information [Line Items]
Total revenue	112.7	122.4	205.8	226.8
Data segment
Segment Reporting Information [Line Items]
Total revenue	35.8	77.7	68.7	147.1
Access segment
Segment Reporting Information [Line Items]
Total revenue	19.4	37.3	58.4	73.2
Services segment
Segment Reporting Information [Line Items]
Total revenue	$ 44.2	$ 50.7	$ 88.6	$ 98.9

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Investments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012	Dec. 28, 2012	Dec. 31, 2004
Schedule of Investments [Line Items]
Shares acquired in business acquisition						10.6
Value of Other Marketable Securities and Loan Related to Other Marketable Securities	$ 244.1		$ 244.1		$ 195.1
Market price per share of other Marketable Securities and Loan Related to Other Marketable Securities	$ 24.34		$ 24.34		$ 19.45
Fees associated with the stock loan agreement	0.3	0.3	0.6	0.6
Deferred tax liability that will be due on certain hedge contract gains upon termination of our Loan Related to Other Marketable Securities	184.0		184.0		184.0
Settlement of Stock Loan					0.6
Shares outstanding on stock loan	10		10
Investments in partnerships and start-up technology companies	$ 1.6		$ 1.6		$ 1.8

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 28, 2013

Accumulated Other Comprehensive Income

Accumulated other comprehensive income (net of tax) for the first six months of 2013 consists of the following:

	Unrealized Net Gain (Loss) on Available-for- Sale Securities			Unrealized net Gain on Cash Flow Hedges		Foreign Currency Translation Adjustments			Unrecognized Prior Service Cost			Unrecognized Net Gain on Retiree Medical Plan		Accumulated Other Comprehensive Income
Balance at December 28, 2012	$	2.4		$	—	$	94.9		$	(0.1	)	$	1.8	$	99.0
Amounts reclassified from other comprehensive income		(2.0	)		—		—			—			—		(2.0	)
Other comprehensive (loss) gain		(3.3	)		0.7		(7.2	)		—			—		(9.8	)
Net other comprehensive loss		(5.3	)		0.7		(7.2	)		—			—		(11.8	)
Balance at June 28, 2013	$	(2.9	)	$	0.7	$	87.7		$	(0.1	)	$	1.8	$	87.2

Amounts Reclassified from Accumulated Other Comprehensive Income to Net Loss

Amounts reclassified from accumulated other comprehensive income to net loss in the Consolidated Statements of Operations were as follows:

	Second Quarter
Details about Accumulated Other Comprehensive Income Components	6/28/13			6/29/12			Affected Line Item in the Consolidated Statements of Operations
Unrealized net (loss) gain on available-for-sale securities	$	(0.1	)	$	0.3		Other expense, net
		—			(0.1	)	Income tax expense
	$	(0.1	)	$	0.2		Net of tax
	Six Months
Details about Accumulated Other Comprehensive Income Components	6/28/13			6/29/12			Affected Line Item in the Consolidated Statements of Operations
Unrealized net gain on available-for-sale securities	$	2.6		$	0.3		Other expense, net
		(0.6	)		—		Income tax expense
	$	2.0		$	0.3		Net of tax

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Equity-Based Compensation (Tables)

6 Months Ended

Jun. 28, 2013

Schedule Of Assumptions Used To Calculate Weighted Average Fair Value Of Stock Option Grants

The following table summarizes the assumptions used to compute the weighted average fair value of stock option grants:

	6/29/12
Expected volatility		43.3	%
Risk-free interest rate		0.9	%
Expected term (in years)		5.3
Expected dividend yield		2.0	%

Stock Option Activity

The following is a summary of stock option activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in  millions)
Outstanding – beginning of year		16,713,155		$	7.50
Exercised		(470	)	$	0.16
Forfeited/expired		(1,037,933	)	$	7.26
Outstanding – end of period		15,674,752		$	7.52		2.9	$	—
Exercisable – end of period		14,547,270		$	7.75		2.5	$	—
Shares vested or expected to vest		15,603,508		$	7.53		2.9	$	—

Cash-Settled Stock Appreciation Rights Activity

The following is a summary of cash-settled SARs activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Exercise Price
Outstanding – beginning of year		456,195		$	6.67
Forfeited/expired		(20,667	)	$	5.58
Outstanding – end of period		435,528		$	6.72

Restricted Stock Unit Activity

The following is a summary of restricted stock activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		3,899,865		$	4.68
Granted		881,372		$	2.07
Vested		(1,511,388	)	$	5.33
Forfeited		(507,478	)	$	4.54
Non-vested – end of period		2,762,371		$	3.51

Performance Stock Unit Activity

The following is a summary of PSU activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		1,633,866		$	4.40
Granted		5,282,045		$	2.20
Vested		(949,901	)	$	4.61
Forfeited		(661,038	)	$	2.77
Non-vested – end of period		5,304,972		$	2.38

Equity-Based Compensation Expense

The following table sets forth the total equity-based compensation expense resulting from stock options, SARs, restricted stock, and PSUs by line item on the Statements of Operations:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13			6/29/12
Cost of revenue – products	$	0.2	$	0.2		$	0.4		$	0.6
Cost of revenue – services		0.2		0.4			0.6			0.9
Research and development		0.3		1.4			0.9			3.2
Sales and marketing		0.3		0.8			0.8			1.7
General and administrative		1.0		2.0			2.4			4.0
Equity-based compensation expense before income taxes		2.0		4.8			5.1			10.4
Income tax benefit		—		(0.1	)		(0.1	)		(0.2	)
Total equity-based compensation expense after income taxes	$	2.0	$	4.7		$	5.0		$	10.2

Total Equity-Based Compensation Expense by Type

The following table sets forth the total equity-based compensation expense by type:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13		6/29/12
Stock options	$	0.3	$	0.9		$	0.9	$	2.0
Cash-settled SARs		—		(0.2	)		—		(0.1	)
Restricted stock		1.4		2.4			3.5		5.8
Performance stock units		0.3		1.7			0.7		2.7
Total	$	2.0	$	4.8		$	5.1	$	10.4

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Equity Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	6 Months Ended	3 Months Ended	6 Months Ended					3 Months Ended
	Jun. 28, 2013	Jun. 28, 2013 Stock Options And Stock Appreciation Rights	Jun. 28, 2013 Performance stock units	Jun. 29, 2012 Performance stock units	Jun. 28, 2013 Performance stock units Awards Granted during Twenty Twelve	Jun. 28, 2013 Restricted stock	Jun. 29, 2012 Restricted stock	Jun. 28, 2013 Minimum	Jun. 28, 2013 Maximum	Jun. 28, 2013 Majority
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based grants vesting period								1 year	3 years	3 years
Stock and Stock Appreciation Rights Expiration (in years)		10 years
Number of shares for equity-based compensation grants approved by shareholders	53,889,977
Number of shares for equity-based compensation approved by shareholders available for grant	15,255,440
Fair market value of restricted stock vested						$ 3.2
Equity-based compensation granted, grant date weighted average fair value			$ 2.20	$ 3.98		$ 2.07	$ 3.95
Performance stock units granted			5,282,045	1,962,549		881,372
Shares issued for each PSU granted, maximum			1
Number of common shares vested and issued for performance stock units					255,573
Shares earned per performance stock unit					1
The percentage of performance stock units earned for performance stock units granted in 2012					100.00%
Unrecognized equity-based compensation cost	$ 9.1
Weighted average period for equity-based compensation recognition, years	1 year 4 months 24 days

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Available for Sale Marketable Securities (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013	Dec. 28, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 277.0	$ 377.5
Unrealized Gain	0.3	3.2
Unrealized Loss	(2.8)
Fair Value	274.5	380.7
U.S. government debt obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	52.8	31.1
Unrealized Loss	(0.8)
Fair Value	52.0	31.1
Corporate debt obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	58.2	9.5
Unrealized Gain		0.1
Unrealized Loss	(0.5)
Fair Value	57.7	9.6
Mortgaged backed debt obligations guaranteed by GNMA
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	105.4	54.9
Unrealized Gain	0.2	0.6
Unrealized Loss	(1.5)
Fair Value	104.1	55.5
Certificates of deposit guaranteed by FDIC
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1.2	1.2
Fair Value	1.2	1.2
Foreign government debt obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	26.4	159.3
Unrealized Gain		1.8
Fair Value	26.4	161.1
Foreign corporate debt obligations guaranteed by foreign governments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	33.0	121.5
Unrealized Gain	0.1	0.7
Fair Value	$ 33.1	$ 122.2

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Fair Value of Derivative Instruments in Consolidated Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013	Dec. 28, 2012
Liability Derivatives Reported In Other Accrued Liabilities
Derivatives, Fair Value [Line Items]
Cash flow hedges
Balance sheet hedges (Non-designated hedges), Liabilities	0.2	0.1
Total derivative, Liabilities	0.2
Asset Derivatives Reported In Miscellaneous Receivables And Other Current Assets
Derivatives, Fair Value [Line Items]
Cash flow hedges	0.6
Balance sheet hedges (Non-designated hedges)	0.1
Total derivatives	$ 0.7

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Schedule of Cash-Settled Stock Appreciation Rights Activity (Detail) (Cash-settled SARs, USD $)	6 Months Ended
	Jun. 28, 2013
Cash-settled SARs
Shares
Beginning of year	456,195
Forfeited/expired	(20,667)
Ending of year	435,528
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding - beginning of year	$ 6.67
Weighted Average Exercise Price, Forfeited/expired	$ 5.58
Outstanding - end of year	$ 6.72

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Summary of Restructuring and Other Charges (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 0.5	$ 0.9	$ 35.2	$ 106.9
Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	0.4	(2.0)	16.2	22.1
Facility- and Asset-Related Charges
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges		2.9	14.7	35.9
Other obligations
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	0.1		4.3	1.2
Accelerated amortization of intangible assets
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges				$ 47.7

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Product Warranties - Additional Information (Detail)	6 Months Ended
	Jun. 28, 2013 M Y D
Product Warranty Liability [Line Items]
Basic limited warranty, minimum range in days	90
Basic limited warranty, maximum range in years	6
Number of months of estimated warranty included in current liabilities	12
Number of months over which warranty liability is classified as a long-term liability	12

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Product Warranties (Tables)

6 Months Ended

Jun. 28, 2013

Schedule Of Standard Product Warranty Liabilities

Product warranty liabilities are as follows:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Balance – beginning of period	$	15.8		$	17.3		$	15.8		$	17.0
Accruals for product warranties		1.6			1.0			2.8			2.9
Settlements		(0.6	)		(1.3	)		(1.8	)		(2.2	)
Other adjustments to accruals for product warranties		(0.4	)		(0.7	)		(0.4	)		(1.4	)
Balance – end of period	$	16.4		$	16.3		$	16.4		$	16.3

Balance Sheet Classification of Product Warranty Liabilities

Balance sheet classification - end of period	Balance at 6/28/13		Balance at 6/29/12
Other accrued liabilities	$	6.6	$	7.4
Other long-term liabilities		9.8		8.9
Total product warranty liabilities	$	16.4	$	16.3

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 28, 2013	Dec. 28, 2012
Accounts receivable, allowances	$ 1.0	$ 1.3
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, authorized	1,000,000,000	1,000,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	511,434,268	508,846,484
Treasury stock, shares	155,790,325	141,284,352

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Basis of Presentation

6 Months Ended

Jun. 28, 2013

Basis of Presentation

1. Basis of Presentation

We prepared the accompanying unaudited consolidated financial statements in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial statements, the requirements of Form 10-Q and applicable rules of the U.S. Securities and Exchange Commission’s Regulation S-X. Therefore, they do not include all disclosures normally required by U.S. generally accepted accounting principles for complete financial statements. Accordingly, the financial statements and notes herein are to be read in conjunction with our Annual Report on Form 10-K for the year ended December 28, 2012.

In our opinion, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) that are necessary for a fair presentation. Operating results for interim periods are not necessarily indicative of operating results for the full year.

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Investments

6 Months Ended

Jun. 28, 2013

Investments

4. Investments

Investments in marketable securities

At June 28, 2013, and December 28, 2012, available-for-sale marketable securities consisted of the following:

June 28, 2013	Amortized Cost		Unrealized Gain		Unrealized Loss			Fair Value
U.S. government debt obligations	$	52.8	$	—	$	(0.8	)	$	52.0
Corporate debt obligations		58.2		—		(0.5	)		57.7
Mortgaged backed debt obligations guaranteed by GNMA		105.4		0.2		(1.5	)		104.1
Certificates of deposit guaranteed by FDIC		1.2		—		—			1.2
Foreign government debt obligations		26.4		—		—			26.4
Foreign corporate debt obligations guaranteed by foreign governments		33.0		0.1		—			33.1
Total	$	277.0	$	0.3	$	(2.8	)	$	274.5
December 28, 2012
U.S. government debt obligations	$	31.1	$	—	$	—		$	31.1
Corporate debt obligations		9.5		0.1		—			9.6
Mortgaged backed debt obligations guaranteed by GNMA		54.9		0.6		—			55.5
Certificates of deposit guaranteed by FDIC		1.2		—		—			1.2
Foreign government debt obligations		159.3		1.8		—			161.1
Foreign corporate debt obligations guaranteed by foreign governments		121.5		0.7		—			122.2
Total	$	377.5	$	3.2	$	—		$	380.7

The following table summarizes the maturities of our available-for-sale marketable securities at June 28, 2013:

	Amortized Cost		Fair Value
Less than 12 months	$	65.3	$	65.4
Due in 1 to 5 years		106.4		105.0
Due after 5 years		105.3		104.1
Total	$	277.0	$	274.5

Gross unrealized gains and losses related to fixed-income securities were caused by interest rate fluctuations. We review investments held with unrealized losses to determine if the loss is other-than-temporary. We evaluated near-term prospects of the security in relation to the severity and duration of the unrealized loss. We also assessed our intent to sell the security, whether it is more likely than not that the security will be required to be sold before recovery, or the security is not expected to recover its entire amortized cost basis. Based on our review, we do not intend to sell these securities and believe that they will recover their entire amortized cost basis; therefore, we do not consider these investments to be other-than-temporarily impaired at June 28, 2013. No other-than-temporary impairments were recorded in the second quarter or first six months of 2013 and 2012.

Gross unrealized gains and losses related to fixed-income securities were caused by interest rate fluctuations. No other-than-temporary impairments were recorded in the second quarter or first six months of 2013 and 2012.

Investments in marketable securities with unrealized losses at June 28, 2013, were as follows:

	Unrealized Loss Less than 12 months					Unrealized Loss Greater than 12 months				Total
June 28, 2013	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government debt obligations	$	41.0	$	(0.8	)	$	—	$	—	$	41.0	$	(0.8	)
Corporate debt obligations		51.6		(0.5	)		—		—		51.6		(0.5	)
Mortgaged backed debt obligations guaranteed by GNMA		82.1		(1.5	)		—		—		82.1		(1.5	)
Total	$	174.7	$	(2.8	)	$	—	$	—	$	174.7	$	(2.8	)

Investments in marketable securities with unrealized losses at December 28, 2012, were negligible.

The following table presents gross realized gains and losses related to fixed income investments:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Gross realized gains	$	0.1		$	0.2		$	1.7		$	0.5
Gross realized losses		(0.3	)		(0.2	)		(0.7	)		(0.5	)
Total	$	(0.2	)	$	—		$	1.0		$	—

Other marketable securities and Loan related to other marketable securities

With the acquisition of Advanced Fibre Communications, Inc. (AFC) in 2004, we acquired 10.6 million shares of Cisco common stock, shown as Other marketable securities in Current Assets in our Consolidated Balance Sheets. Our Cisco common stock is classified as a trading security. In addition, we have a share loan arrangement with a financial institution for the same number of shares of Cisco common stock shown as Loan related to other marketable securities in Current Liabilities in our Consolidated Balance Sheets, which is due on demand.

As a result, we own the same number of Cisco shares as we have borrowed under the share loan arrangement; thereby, eliminating any market risk exposure associated with the share loan arrangement as increases (or decreases) in the value of Cisco stock are off-set equally by increases (or decreases) in the value of the shares of Cisco stock we own. In the event the counter-party financial institution to the share loan arrangement demands return of the borrowed Cisco shares, we will settle the obligation with our Cisco shares or with shares borrowed from another lender.

Other marketable securities and Loan related to other marketable securities was $244.1 million at a market price of $24.34 per share at June 28, 2013, and $195.1 million at a market price of $19.45 per share at December 28, 2012. The fees associated with the stock loan agreement of $0.3 million in the second quarter of 2013 and 2012, and $0.6 million in the first six months of 2013 and 2012, are included in Interest income, net in the Consolidated Statements of Operations.

Additionally, in connection with our acquisition of AFC, we recorded a tax liability associated with a deferred gain relating to a settled hedging arrangement on the acquired Cisco shares. The deferred tax liability was $184.0 million as of June 28, 2013, and as of December 28, 2012.

The Cisco shares and related loan discussed above are maintained by us in order to defer recognition of the tax gain for income tax purposes. In the fourth quarter of 2012, we settled 0.6 million shares, reducing the number of borrowed shares to 10.0 million. In the future we may settle all or a portion of the remaining borrowed shares to the extent we are able to offset the gain by utilizing net operating loss or tax credit carryforwards. To the extent we cannot offset all or a portion of the gain, we may incur cash tax payments that could significantly reduce our cash and cash equivalents.

Long-term equity investments

In addition to the above investments, we maintain investments in partnerships and start-up technology companies. We include these investments in Other Assets, at cost. These investments totaled $1.6 million at June 28, 2013, and $1.8 million at December 28, 2012. We review each investment quarterly, including historical and projected financial performance, expected cash needs and recent funding events. We recognize other-than-temporary impairments if the market value of the investment is below its cost basis for an extended period of time or if the issuer has experienced significant financial declines or difficulties in raising capital to continue operations. We did not record other–than-temporary impairments for the second quarters and six months ended June 28, 2013, and June 29, 2012. Gains on the sale of long-term equity investments and other-than-temporary impairments are included in Other expense, net in the Consolidated Statements of Operations.

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Restructuring and Other Charges

6 Months Ended

Jun. 28, 2013

Restructuring and Other Charges

2. Restructuring and Other Charges

On January 31, 2013, management initiated a restructuring plan that is designed to align expenses with revenue. Tellabs is discontinuing the development of the 9200 product and reducing operating expenses. The pretax charges for this plan will consist of approximately $16 million for workforce reductions of approximately 300 employees, $15 million for facility- and asset-related charges, and $5 million for software license and other contract cancellations. Restructuring expense for this plan for the second quarter of 2013 was $3.5 million, which consists of a reduction of expense of $0.1 million for severance-related charges and charges of $3.6 million for facility- and asset-related charges. Restructuring expense for this plan for the first six months of 2013 was $36.3 million, which consists of $16.1 million for severance-related charges, $16.0 million for facility- and asset-related charges, and $4.2 million for other obligations. By segment, total charges to date under this plan are $1.0 million for Optical, $34.9 million for Data, and $0.4 million for Services. Estimated cash payments under this plan are expected to be $20.2 million, of which $12.9 million has been paid through the second quarter of 2013. Other than the cash payments, actions under this plan are expected to be substantially completed by the end of the fourth quarter of 2013.

On October 24, 2012, management initiated a restructuring plan that is designed to further align expenses with revenue and current market conditions. In order to reduce costs and operating expenses, this plan includes moving certain functions to lower cost geographies. The pretax charges will consist of approximately $10 million for severance-related charges that will affect approximately 200 employees, and $1 million for facility- and asset-related charges. Restructuring expense for this plan for the second quarter of 2013 was $0.7 million, for severance-related charges. Restructuring expense for this plan for the first six months of 2013 was $0.8 million, which consists of $0.5 million for severance-related charges and $0.3 million for facility- and asset-related charges. Cumulative restructuring charges for this plan are $10.2 million, which consists of $9.7 million for severance-related charges and $0.5 million for facility- and asset-related charges. By segment, total charges to date under this plan are $2.3 million for Optical, $3.8 million for Data, $0.8 million for Access, and $3.3 million for Services. Estimated cash payments under this plan are expected to be $8.6 million, of which $5.3 million has been paid through the second quarter of 2013. Other than the cash payments, actions under this plan are expected to be substantially completed by the end of the fourth quarter of 2013.

On January 30, 2012, management initiated a restructuring plan that aligns expenses with revenue. Tellabs stopped new development on the Tellabs^® SMARTCORE 9100 series for mobile packet core and consolidated research and development into fewer locations. A net reduction in expense for this plan for the second quarter of 2013 was $4.0 million, which consists of reductions of $0.1 million for workforce adjustments and $3.9 million for facility- and asset-related charges related to a change in sub-tenant leases. A net reduction in expense for this plan for the first six months of 2013 was $2.5 million, which consists of reductions of $0.2 million for workforce adjustments and $2.3 million for facility- and asset-related charges. Cumulative restructuring charges for this plan are $106.3 million, which consists of $23.0 million for severance-related charges, $34.4 million for facility- and asset-related charges, $47.7 million for the accelerated amortization of abandoned intangible assets, and $1.2 million for other obligations. By segment, total charges to date under this plan are $4.4 million for Optical, $98.2 million for Data, $1.5 million for Access, and $2.2 million for Services. Estimated cash payments under this plan are expected to be $28.5 million, of which $26.9 million has been paid through the second quarter of 2013. Other than the cash payments, actions under this plan were completed in the first quarter of 2013.

Restructuring expense for previous restructuring plans for the second quarter of 2013 was $0.3 million, which consists of a reduction of expense of $0.1 million for severance-related charges, charges of $0.3 million for facility- and asset-related charges and $0.1 million of other obligations. Restructuring expense for the first six months of 2013 was $0.6 million, which consists of a reduction of expense of $0.2 million for severance-related charges, charges of $0.7 million for facility- and asset-related charges and $0.1 million of other obligations.

The balance for restructuring plans relates to net lease obligations that expire through 2017 and cash severance that we expect to pay through the first quarter of 2014.

The following table summarizes restructuring and other charges recorded for the plans mentioned above, as well as adjustments to reserves recorded for prior restructurings:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13		6/29/12
Severance and other termination benefits	$	0.4	$	(2.0	)	$	16.2	$	22.1
Facility and other exit costs		—		2.9			14.7		35.9
Other obligations		0.1		—			4.3		1.2
Accelerated amortization of intangible assets		—		—			—		47.7
Total restructuring and other charges	$	0.5	$	0.9		$	35.2	$	106.9

The following table summarizes restructuring and other charges activity by segment for the second quarter and the first six months of 2013 and the status of the reserves at June 28, 2013:

			Second Quarter Activity
	Balance at 3/29/13		Restructuring Expense			Cash Payments			Other Activities 1			Balance at 6/28/13
2013 Restructuring Plan
Optical	$	0.6	$	0.1		$	(0.4	)	$	—		$	0.3
Data		15.4		3.4			(7.4	)		(2.4	)		9.0
Access		—		—			—			—			—
Services		0.3		—			(0.3	)		—			—
Subtotal 2013 Restructuring Plan		16.3		3.5			(8.1	)		(2.4	)		9.3
2012 Restructuring Plans
Optical		2.7		—			(1.3	)		—			1.4
Data		9.0		(3.9	)		(1.6	)		(0.8	)		2.7
Access		1.1		—			(0.4	)		—			0.7
Services		1.9		0.6			(1.2	)		—			1.3
Subtotal 2012 Restructuring Plans		14.7		(3.3	)		(4.5	)		(0.8	)		6.1
Previous Restructuring Plans
Optical		0.3		0.3			0.1			—			0.7
Data		2.8		—			(0.4	)		—			2.4
Access		1.1		—			(0.4	)		—			0.7
Services		—		—			—			—			—
Subtotal Previous Restructuring Plans		4.2		0.3			(0.7	)		—			3.8
Total All Restructuring Plans	$	35.2	$	0.5		$	(13.3	)	$	(3.2	)	$	19.2

			Six Months Activity
	Balance at 12/28/12		Restructuring Expense			Cash Payments			Other Activities 1			Balance at 6/28/13
2013 Restructuring Plan
Optical	$	—	$	1.0		$	(0.7	)	$	—		$	0.3
Data		—		34.9			(11.8	)		(14.1	)		9.0
Access		—		—			—			—			—
Services		—		0.4			(0.4	)		—			—
Subtotal 2013 Restructuring Plan		—		36.3			(12.9	)		(14.1	)		9.3
2012 Restructuring Plans
Optical		3.9		(0.4	)		(2.1	)		—			1.4
Data		8.6		(1.7	)		(3.9	)		(0.3	)		2.7
Access		1.5		(0.1	)		(0.7	)		—			0.7
Services		2.8		0.5			(2.0	)		—			1.3
Subtotal 2012 Restructuring Plans		16.8		(1.7	)		(8.7	)		(0.3	)		6.1
Previous Restructuring Plans
Optical		0.6		0.3			(0.2	)		—			0.7
Data		3.1		0.3			(1.0	)		—			2.4
Access		1.4		—			(0.7	)		—			0.7
Services		—		—			—			—			—
Subtotal Previous Restructuring Plans		5.1		0.6			(1.9	)		—			3.8
Total All Restructuring Plans	$	21.9	$	35.2		$	(23.5	)	$	(14.4	)	$	19.2

¹ Other activities include accelerated depreciation of property, plant and equipment to be disposed, the effects of currency translation as well as other changes that do not flow through restructuring expense.

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Effect of Derivative Instruments Designated as Hedging Instruments on Consolidated Statements of Operations (Detail) (Other Income Expense, USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 28, 2013 Cash Flow Hedging	Jun. 28, 2013 Cash Flow Hedging	Jun. 29, 2012 Net Investment Hedge	Jun. 29, 2012 Net Investment Hedge
Derivatives, Fair Value [Line Items]
Gain Recognized in Accumulated OCI, net (Effective Portion)	$ 0.7	$ 0.7	$ 6.7	$ 2.5
Gain Recognized in Revenue	0.3	0.3
(Loss) Gain Recognized in Other Expense net: Excluded from Effectiveness Testing Gain (Loss)	$ (0.1)	$ (0.1)	$ 0.1	$ 0.2

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Segment Information (Tables)

6 Months Ended

Jun. 28, 2013

Consolidated Revenue by Segment

Consolidated revenue by segment follows:

	Second Quarter				Six Months
	6/28/13		6/29/12		6/28/13		6/29/12
Optical	$	112.7	$	122.4	$	205.8	$	226.8
Data		35.8		77.7		68.7		147.1
Access		19.4		37.3		58.4		73.2
Services		44.2		50.7		88.6		98.9
Total revenue	$	212.1	$	288.1	$	421.5	$	546.0

Segment Profit and Reconciliation to Operating (Loss) Earnings by Segment

Segment profit (loss) and reconciliation to operating loss (earnings) by segment follows:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Optical	$	25.4		$	29.0		$	38.2		$	43.8
Data		(2.5	)		5.4			(17.3	)		0.4
Access		1.3			6.0			9.5			12.4
Services		14.8			17.2			29.4			32.4
Total segment profit	$	39.0		$	57.6		$	59.8		$	89.0
Sales and marketing expenses		(23.2	)		(32.2	)		(50.2	)		(68.6	)
General and administrative expenses		(17.7	)		(19.7	)		(35.3	)		(40.8	)
Equity-based compensation		(0.7	)		(2.2	)		(1.9	)		(4.8	)
Intangible asset amortization		(1.0	)		(1.0	)		(2.1	)		(3.2	)
Restructuring and other charges		(0.5	)		(0.9	)		(35.2	)		(106.9	)
Operating (loss) earnings	$	(4.1	)	$	1.6		$	(64.9	)	$	(135.3	)

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Summary of Restructuring and Other Charges Activity by Segment (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 28, 2013		Jun. 29, 2012	Jun. 28, 2013		Jun. 29, 2012
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 35.2			$ 21.9
Restructuring expense	0.5		0.9	35.2		106.9
Cash Payments	(13.3)			(23.5)		(26.6)
Other Activities	(3.2)	[1]		(14.4)	[1]
Ending Balance	19.2			19.2
2013 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance	16.3
Restructuring expense	3.5			36.3
Cash Payments	(8.1)			(12.9)
Other Activities	(2.4)	[1]		(14.1)	[1]
Ending Balance	9.3			9.3
2013 Restructuring Plan | Optical Segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	0.6
Restructuring expense	0.1			1.0
Cash Payments	(0.4)			(0.7)
Ending Balance	0.3			0.3
2013 Restructuring Plan | Data segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	15.4
Restructuring expense	3.4			34.9
Cash Payments	(7.4)			(11.8)
Other Activities	(2.4)	[1]		(14.1)	[1]
Ending Balance	9.0			9.0
2013 Restructuring Plan | Services segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	0.3
Restructuring expense				0.4
Cash Payments	(0.3)			(0.4)
2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance	14.7			16.8
Restructuring expense	(3.3)			(1.7)
Cash Payments	(4.5)			(8.7)
Other Activities	(0.8)	[1]		(0.3)	[1]
Ending Balance	6.1			6.1
2012 Restructuring Plan | Optical Segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	2.7			3.9
Restructuring expense				(0.4)
Cash Payments	(1.3)			(2.1)
Ending Balance	1.4			1.4
2012 Restructuring Plan | Data segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	9.0			8.6
Restructuring expense	(3.9)			(1.7)
Cash Payments	(1.6)			(3.9)
Other Activities	(0.8)	[1]		(0.3)	[1]
Ending Balance	2.7			2.7
2012 Restructuring Plan | Access segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	1.1			1.5
Restructuring expense				(0.1)
Cash Payments	(0.4)			(0.7)
Ending Balance	0.7			0.7
2012 Restructuring Plan | Services segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	1.9			2.8
Restructuring expense	0.6			0.5
Cash Payments	(1.2)			(2.0)
Ending Balance	1.3			1.3
Previous Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Beginning Balance	4.2			5.1
Restructuring expense	0.3			0.6
Cash Payments	(0.7)			(1.9)
Ending Balance	3.8			3.8
Previous Restructuring Plans | Optical Segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	0.3			0.6
Restructuring expense	0.3			0.3
Cash Payments	0.1			(0.2)
Ending Balance	0.7			0.7
Previous Restructuring Plans | Data segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	2.8			3.1
Restructuring expense				0.3
Cash Payments	(0.4)			(1.0)
Ending Balance	2.4			2.4
Previous Restructuring Plans | Access segment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	1.1			1.4
Cash Payments	(0.4)			(0.7)
Ending Balance	$ 0.7			$ 0.7

[1] Other activities include accelerated depreciation of property, plant and equipment to be disposed, the effects of currency translation as well as other changes that do not flow through restructuring expense.

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Gross Realized Gains and Losses Related to Fixed Income Investments (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	$ 0.1	$ 0.2	$ 1.7	$ 0.5
Gross realized losses	(0.3)	(0.2)	(0.7)	(0.5)
Total	$ (0.2)		$ 1.0

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Accumulated Other Comprehensive Income Net of Tax (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 28, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at December 28, 2012	$ 99.0
Amounts reclassified from other comprehensive income	(2.0)
Other comprehensive (loss) gain	(9.8)
Net other comprehensive loss	(11.8)
Balance at June 28, 2013	87.2
Unrealized Net Gain (Loss) on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at December 28, 2012	2.4
Amounts reclassified from other comprehensive income	(2.0)
Other comprehensive (loss) gain	(3.3)
Net other comprehensive loss	(5.3)
Balance at June 28, 2013	(2.9)
Unrealized Net Gain (Loss) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at December 28, 2012
Other comprehensive (loss) gain	0.7
Net other comprehensive loss	0.7
Balance at June 28, 2013	0.7
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at December 28, 2012	94.9
Other comprehensive (loss) gain	(7.2)
Net other comprehensive loss	(7.2)
Balance at June 28, 2013	87.7
Unrecognized Prior Service Cost
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at December 28, 2012	(0.1)
Amounts reclassified from other comprehensive income
Balance at June 28, 2013	(0.1)
Unrecognized Net Gain on Retiree Medical Plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at December 28, 2012	1.8
Amounts reclassified from other comprehensive income
Balance at June 28, 2013	$ 1.8

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Schedule of Restricted Stock Unit Activity (Detail) (Restricted stock, USD $)	6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012
Restricted stock
Shares
Beginning of year	3,899,865
Granted	881,372
Vested	(1,511,388)
Forfeited	(507,478)
Ending of year	2,762,371
Weighted Average Grant Date Fair Value
Non-vested - beginning of year	$ 4.68
Granted	$ 2.07	$ 3.95
Vested	$ 5.33
Forfeited	$ 4.54
Non-vested - end of period	$ 3.51

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Balance Sheet Classification of Product Warranty Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013	Mar. 29, 2013	Dec. 28, 2012	Jun. 29, 2012	Mar. 30, 2012	Dec. 30, 2011
Product Warranty Liability [Line Items]
Other accrued liabilities	$ 6.6			$ 7.4
Other long-term liabilities	9.8			8.9
Total product warranty liabilities	$ 16.4	$ 15.8	$ 15.8	$ 16.3	$ 17.3	$ 17.0

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Net loss	$ (7.8)	$ (4.7)	$ (63.7)	$ (144.5)
Reclassification adjustment for net loss (gain) included in net loss, net of tax of $0.0, $0.1, $0.6 and $0.1	0.1	(0.2)	(2.0)	(0.2)
Unrealized net (loss) gain on available-for-sale securities, net of tax of $0.0, $(0.4), $0.0 and $(0.5)	(3.1)		(3.3)	1.1
Unrealized net gain on net investment hedges		6.7		2.6
Unrealized net gain on cash flow hedges	0.7		0.7
Foreign currency translation adjustment	0.9	(37.6)	(7.2)	(21.9)
Comprehensive Loss	$ (9.2)	$ (35.8)	$ (75.5)	$ (162.9)

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Equity-Based Compensation

6 Months Ended

Jun. 28, 2013

Equity-Based Compensation

7. Equity-Based Compensation

The Tellabs, Inc. Amended and Restated 2004 Incentive Compensation Plan (2004 Plan) provides for the grant of short-term and long-term incentives, including stock options, stock appreciation rights (SARs), restricted stock and performance stock units (PSUs). Equity-based grants vest over one to three years, with the majority vesting over a three-year period. We recognize compensation expense for stock options, restricted stock and PSUs over the service period based on the fair value on the grant date. Stock options and SARs granted but unexercised expire 10 years from the grant date. Stockholders previously approved 53,889,977 shares for grant under the 2004 Plan, of which 15,255,440 remain available for grant at June 28, 2013.

Stock Options

We estimate the fair value of stock options using the Black-Scholes option-pricing model. This model requires the use of assumptions that will have a significant impact on the fair value estimate. There were no stock options granted during the second quarter and first six months of 2013.

The following table summarizes the assumptions used to compute the weighted average fair value of stock option grants:

	6/29/12
Expected volatility		43.3	%
Risk-free interest rate		0.9	%
Expected term (in years)		5.3
Expected dividend yield		2.0	%

We based our calculation of expected volatility on a combination of historical and implied volatility for options granted. We based the risk-free interest rate on the U.S. Treasury yield curve in effect at the date of grant. We estimated the expected term of the options using their vesting period, post-vesting employment termination behavior and historical exercise patterns. We based the expected dividend yield on the option’s exercise price and annualized dividend rate at the date of grant.

The following is a summary of stock option activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in  millions)
Outstanding – beginning of year		16,713,155		$	7.50
Exercised		(470	)	$	0.16
Forfeited/expired		(1,037,933	)	$	7.26
Outstanding – end of period		15,674,752		$	7.52		2.9	$	—
Exercisable – end of period		14,547,270		$	7.75		2.5	$	—
Shares vested or expected to vest		15,603,508		$	7.53		2.9	$	—

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price as of June 28, 2013, that the option holders would have received had all holders exercised their options as of that date. The aggregate intrinsic value of exercised stock options during the second quarter of 2013 was negligible.

Cash-Settled Stock Appreciation Rights

The 2004 Plan provides for the granting of cash-settled SARs in conjunction with, or independent of, the stock options under the 2004 Plan. These SARs allow the holder to receive in cash the difference between the cash-settled SARs’ grant price (the market value of our stock on the grant date) and the market value of our stock on the date the holder exercises the SAR. There were no SARs granted during the first six months of 2013. There were no cash payments during the first six months of 2013 and 2012.

The following is a summary of cash-settled SARs activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Exercise Price
Outstanding – beginning of year		456,195		$	6.67
Forfeited/expired		(20,667	)	$	5.58
Outstanding – end of period		435,528		$	6.72

Restricted Stock

The fair market value of restricted stock vested was $3.2 million in the first six months of 2013. The weighted average grant date fair value of restricted stock was $2.07 per share in the first six months of 2013 and $3.95 per share in the first six months of 2012.

The following is a summary of restricted stock activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		3,899,865		$	4.68
Granted		881,372		$	2.07
Vested		(1,511,388	)	$	5.33
Forfeited		(507,478	)	$	4.54
Non-vested – end of period		2,762,371		$	3.51

Performance Stock Units

The 2004 Plan provides for the granting of PSUs. We granted 5,282,045 PSUs in the first six months of 2013 and 1,962,549 PSUs in the first six months of 2012. The PSUs granted in the first six months of 2013 entitle the recipients to receive shares of our common stock commencing in the first quarter of 2014, contingent on the achievement of operating earnings, performance related to revenue and attainment of strategic objectives for the 2013 fiscal year. Following achievement of these measures and subject to continued employment, one-third of such shares will be issued in annual installments beginning in the first quarter of 2014. At maximum target performance, we will issue one share for each PSU granted. The weighted average price of PSUs granted in the first six months of 2013 was $2.20 per share and the weighted average price of PSUs granted in the first six months of 2012 was $3.98 per share.

The PSUs granted in 2012 entitle the recipients to receive shares of our common stock commencing in the first quarter of 2013, contingent on the achievement of operating earnings targets and strategic goals for the 2012 fiscal year. Under the executive plan, 100% of the PSUs were earned and one share for each PSU will be paid out, subject to continued employment. We issued one-third (255,573 shares) of the total shares in the first quarter of 2013 and generally, one-third of such shares will be issued in annual installments in the first quarter of 2014 and the first quarter of 2015.

The following is a summary of PSU activity during 2013 as of June 28, 2013:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		1,633,866		$	4.40
Granted		5,282,045		$	2.20
Vested		(949,901	)	$	4.61
Forfeited		(661,038	)	$	2.77
Non-vested – end of period		5,304,972		$	2.38

Equity-Based Compensation Expense

The following table sets forth the total equity-based compensation expense resulting from stock options, SARs, restricted stock, and PSUs by line item on the Statements of Operations:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13			6/29/12
Cost of revenue – products	$	0.2	$	0.2		$	0.4		$	0.6
Cost of revenue – services		0.2		0.4			0.6			0.9
Research and development		0.3		1.4			0.9			3.2
Sales and marketing		0.3		0.8			0.8			1.7
General and administrative		1.0		2.0			2.4			4.0
Equity-based compensation expense before income taxes		2.0		4.8			5.1			10.4
Income tax benefit		—		(0.1	)		(0.1	)		(0.2	)
Total equity-based compensation expense after income taxes	$	2.0	$	4.7		$	5.0		$	10.2

The following table sets forth the total equity-based compensation expense by type:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13		6/29/12
Stock options	$	0.3	$	0.9		$	0.9	$	2.0
Cash-settled SARs		—		(0.2	)		—		(0.1	)
Restricted stock		1.4		2.4			3.5		5.8
Performance stock units		0.3		1.7			0.7		2.7
Total	$	2.0	$	4.8		$	5.1	$	10.4

As of June 28, 2013, we had $9.1 million of unrecognized equity-based compensation cost that we expect to recognize over a weighted average period of 1.4 years.

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CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Jun. 28, 2013	Dec. 28, 2012
Current Assets
Cash and cash equivalents	$ 267.2	$ 223.7
Investments in marketable securities	274.5	380.7
Total cash, cash equivalents and marketable securities	541.7	604.4
Other marketable securities	244.1	195.1
Accounts receivable, net of allowances of $1.0 and $1.3	200.2	246.8
Inventories
Raw materials	32.6	30.2
Finished goods	81.1	70.8
Total inventories	113.7	101.0
Income taxes	14.5	7.3
Miscellaneous receivables and other current assets	25.3	35.1
Total Current Assets	1,139.5	1,189.7
Property, Plant and Equipment
Land	20.0	20.1
Buildings and improvements	189.1	193.5
Equipment	384.6	406.4
Total property, plant and equipment	593.7	620.0
Accumulated depreciation	(389.0)	(389.6)
Property, plant and equipment, net	204.7	230.4
Goodwill	122.1	122.1
Intangible Assets, Net of Amortization	2.3	4.4
Other Assets	70.5	91.5
Total Assets	1,539.1	1,638.1
Current Liabilities
Accounts payable	57.3	57.4
Accrued compensation	29.1	37.7
Restructuring and other charges	16.5	19.1
Income taxes	40.6	61.5
Loan related to other marketable securities	244.1	195.1
Deferred revenue	25.5	20.3
Other accrued liabilities	62.7	78.5
Total Current Liabilities	475.8	469.6
Long-Term Restructuring Liabilities	2.7	2.8
Income Taxes	21.8	21.9
Other Long-Term Liabilities	39.6	42.5
Stockholders' Equity
Preferred stock: authorized 5,000,000 shares of $0.01 par value; no shares issued and outstanding
Common stock: authorized 1,000,000,000 shares of $0.01 par value; 511,434,268 and 508,846,484 shares issued	5.1	5.1
Additional paid-in capital	1,597.4	1,592.2
Treasury stock, at cost: 155,790,325 and 141,284,352 shares	(1,262.8)	(1,231.0)
Retained earnings	572.3	636.0
Accumulated other comprehensive income	87.2	99.0
Total Stockholders' Equity	999.2	1,101.3
Total Liabilities and Stockholders' Equity	$ 1,539.1	$ 1,638.1

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Segment Profit (Loss) and Reconciliation to Operating Loss Earnings by Segment (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Segment Reporting Information [Line Items]
Total segment profit	$ 39.0	$ 57.6	$ 59.8	$ 89.0
Sales and marketing expenses	(23.2)	(32.2)	(50.2)	(68.6)
General and administrative expenses	(17.7)	(19.7)	(35.3)	(40.8)
Equity-based compensation	(0.7)	(2.2)	(1.9)	(4.8)
Intangible asset amortization	(1.0)	(1.0)	(2.1)	(3.2)
Restructuring and other charges	(0.5)	(0.9)	(35.2)	(106.9)
Goodwill and IPR&D impairment
Operating (loss) earnings	(4.1)	1.6	(64.9)	(135.3)
Optical Segment
Segment Reporting Information [Line Items]
Total segment profit	25.4	29.0	38.2	43.8
Data segment
Segment Reporting Information [Line Items]
Total segment profit	(2.5)	5.4	(17.3)	0.4
Access segment
Segment Reporting Information [Line Items]
Total segment profit	1.3	6.0	9.5	12.4
Services segment
Segment Reporting Information [Line Items]
Total segment profit	$ 14.8	$ 17.2	$ 29.4	$ 32.4

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 28, 2013		Jun. 29, 2012		Jun. 28, 2013		Jun. 29, 2012
Revenue
Products	$ 167.9		$ 237.4		$ 332.9		$ 447.1
Services	44.2		50.7		88.6		98.9
Total revenue	212.1		288.1		421.5		546.0
Cost of Revenue
Products	102.3		140.0		209.2		268.7
Services	29.6		33.9		59.8		67.4
Total cost of revenue	131.9		173.9		269.0		336.1
Gross Profit	80.2		114.2		152.5		209.9
Gross profit as a percentage of revenue	37.80%		39.60%		36.20%		38.40%
Gross profit as a percentage of revenue - products	39.10%		41.00%		37.20%		39.90%
Gross profit as a percentage of revenue - services	33.00%		33.10%		32.50%		31.90%
Operating Expenses
Research and development	41.9		58.8		94.6		125.7
Sales and marketing	23.2		32.2		50.2		68.6
General and administrative	17.7		19.7		35.3		40.8
Intangible asset amortization	1.0		1.0		2.1		3.2
Restructuring and other charges	0.5		0.9		35.2		106.9
Total operating expenses	84.3		112.6		217.4		345.2
Operating (loss) earnings	(4.1)		1.6		(64.9)		(135.3)
Operating (loss) earnings as a percentage of revenue	(1.90%)		0.60%		(15.40%)		(24.80%)
Other Income
Interest income, net	0.5		1.6		1.2		3.4
Other expense, net	(1.2)		(1.1)				(2.1)
Total other (expense) income	(0.7)		0.5		1.2		1.3
(Loss) Earnings Before Income Tax	(4.8)		2.1		(63.7)		(134.0)
Income tax expense	(3.0)		(6.8)		0		(10.5)
Net Loss	$ (7.8)		$ (4.7)		$ (63.7)		$ (144.5)
Weighted Average Shares Outstanding
Basic	356.1		367.1		357.7		366.4
Diluted	356.1		367.1		357.7		366.4
Net Loss Per Share
Basic	$ (0.02)		$ (0.01)		$ (0.18)		$ (0.39)
Diluted	$ (0.02)	[1]	$ (0.01)	[1]	$ (0.18)	[1]	$ (0.39)	[1]
Cash Dividends Per Share			$ 0.02				$ 0.04

[1] Dilutive securities are not included in the computation of diluted earnings per share when a company is in a loss position. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for the second quarter and first six months of 2013 and the second quarter and first six months of 2012 are the same. Diluted weighted average shares outstanding were 356.4 million in the second quarter of 2013, 358.9 million in the first six months of 2013, and 368.1 million in the second quarter of 2012 and 368.2 million in the first six months of 2012.

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Schedule of Performance Stock Unit Activity (Detail) (Performance stock units, USD $)	6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012
Performance stock units
Shares
Beginning of year	1,633,866
Granted	5,282,045	1,962,549
Vested	(949,901)
Forfeited	(661,038)
Ending of year	5,304,972
Weighted Average Grant Date Fair Value
Non-vested - beginning of year	$ 4.40
Granted	$ 2.20	$ 3.98
Vested	$ 4.61
Forfeited	$ 2.77
Non-vested - end of period	$ 2.38

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Net Loss Per Share (Tables)

6 Months Ended

Jun. 28, 2013

Computation Of Net Loss Per Share

The following table sets forth the computation of net loss per share:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Numerator:
Net loss	$	(7.8	)	$	(4.7	)	$	(63.7	)	$	(144.5	)
Denominator:
Denominator for basic net loss per share – weighted average shares outstanding		356.1			367.1			357.7			366.4
Effect of dilutive securities:
Employee stock options and restricted and performance stock awards		—			—			—			—
Denominator for diluted net loss per share – adjusted weighted average shares outstanding and assumed conversions		356.1			367.1			357.7			366.4
Net loss per share, basic	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)
Net loss per share, diluted1	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)

¹  Dilutive securities are not included in the computation of diluted earnings per share when a company is in a loss position. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for the second quarter and first six months of 2013 and the second quarter and first six months of 2012 are the same. Diluted weighted average shares outstanding were 356.4 million in the second quarter of 2013, 358.9 million in the first six months of 2013, and 368.1 million in the second quarter of 2012 and 368.2 million in the first six months of 2012.

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Investments (Tables)

6 Months Ended

Jun. 28, 2013

Available-For-Sale Marketable Securities

At June 28, 2013, and December 28, 2012, available-for-sale marketable securities consisted of the following:

June 28, 2013	Amortized Cost		Unrealized Gain		Unrealized Loss			Fair Value
U.S. government debt obligations	$	52.8	$	—	$	(0.8	)	$	52.0
Corporate debt obligations		58.2		—		(0.5	)		57.7
Mortgaged backed debt obligations guaranteed by GNMA		105.4		0.2		(1.5	)		104.1
Certificates of deposit guaranteed by FDIC		1.2		—		—			1.2
Foreign government debt obligations		26.4		—		—			26.4
Foreign corporate debt obligations guaranteed by foreign governments		33.0		0.1		—			33.1
Total	$	277.0	$	0.3	$	(2.8	)	$	274.5
December 28, 2012
U.S. government debt obligations	$	31.1	$	—	$	—		$	31.1
Corporate debt obligations		9.5		0.1		—			9.6
Mortgaged backed debt obligations guaranteed by GNMA		54.9		0.6		—			55.5
Certificates of deposit guaranteed by FDIC		1.2		—		—			1.2
Foreign government debt obligations		159.3		1.8		—			161.1
Foreign corporate debt obligations guaranteed by foreign governments		121.5		0.7		—			122.2
Total	$	377.5	$	3.2	$	—		$	380.7

Maturities of Available-For-Sale Marketable Securities

The following table summarizes the maturities of our available-for-sale marketable securities at June 28, 2013:

	Amortized Cost		Fair Value
Less than 12 months	$	65.3	$	65.4
Due in 1 to 5 years		106.4		105.0
Due after 5 years		105.3		104.1
Total	$	277.0	$	274.5

Investments in Marketable Securities with Unrealized Losses

Investments in marketable securities with unrealized losses at June 28, 2013, were as follows:

	Unrealized Loss Less than 12 months					Unrealized Loss Greater than 12 months				Total
June 28, 2013	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government debt obligations	$	41.0	$	(0.8	)	$	—	$	—	$	41.0	$	(0.8	)
Corporate debt obligations		51.6		(0.5	)		—		—		51.6		(0.5	)
Mortgaged backed debt obligations guaranteed by GNMA		82.1		(1.5	)		—		—		82.1		(1.5	)
Total	$	174.7	$	(2.8	)	$	—	$	—	$	174.7	$	(2.8	)

Gross Realized Gains and Losses Related to Fixed Income Investments

The following table presents gross realized gains and losses related to fixed income investments:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Gross realized gains	$	0.1		$	0.2		$	1.7		$	0.5
Gross realized losses		(0.3	)		(0.2	)		(0.7	)		(0.5	)
Total	$	(0.2	)	$	—		$	1.0		$	—

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Schedule of Standard Product Warranty Liabilities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Product Warranty Liability [Line Items]
Balance - beginning of period	$ 15.8	$ 17.3	$ 15.8	$ 17.0
Accruals for product warranties	1.6	1.0	2.8	2.9
Settlements	(0.6)	(1.3)	(1.8)	(2.2)
Other adjustments to accruals for product warranties	(0.4)	(0.7)	(0.4)	(1.4)
Balance - end of period	$ 16.4	$ 16.3	$ 16.4	$ 16.3

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Income Taxes [Line Items]
Income provision	$ 3.0	$ 6.8	$ 0	$ 10.5
Federal statutory rate			35.00%

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Derivative Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013	Jun. 29, 2012
Derivatives Not Designated as Hedging Instrument | Foreign Exchange Forward
Derivative [Line Items]
Gross notional equivalent amount	$ 110.1	$ 212.3
Non-designated foreign currency forward contracts, number of currencies held	13	14
Cash Flow Hedges
Derivative [Line Items]
Net unrealized gain on Cash Flow Hedges in Accumulated other comprehensive income	0.7
Number of currencies that cash flow hedges are held in as of the balance sheet date	1
Gross notional equivalent amount	14.1
Settled Contracts
Derivative [Line Items]
Net unrealized gain on net investment hedges in Accumulated other comprehensive income	$ 16.1	$ 21.2

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Maturities of Available for Sale Marketable Securities (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013	Dec. 28, 2012
Schedule of Available-for-sale Securities [Line Items]
Due in less than 12 months, amortized cost	$ 65.3
Due in 1 to 5 years, amortized cost	106.4
Due after 5 years, amortized cost	105.3
Total, amortized cost	277.0	377.5
Due in less than 12 months, fair value	65.4
Due in 1 to 5 years, fair value	105.0
Due after 5 years, fair value	104.1
Fair Value	$ 274.5	$ 380.7

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Investments in Marketable Securities with Unrealized Losses (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013
Schedule of Available-for-sale Securities [Line Items]
Unrealized Loss Less than 12 months, Fair Value	$ 174.7
Unrealized Loss Less than 12 months, Unrealized Loss	(2.8)
Unrealized Loss Greater than 12 months, Fair Value
Unrealized Loss Greater than 12 months, Unrealized Loss
Total, Fair Value	174.7
Total, Unrealized Loss	(2.8)
U.S. government debt obligations
Schedule of Available-for-sale Securities [Line Items]
Unrealized Loss Less than 12 months, Fair Value	41.0
Unrealized Loss Less than 12 months, Unrealized Loss	(0.8)
Unrealized Loss Greater than 12 months, Fair Value
Unrealized Loss Greater than 12 months, Unrealized Loss
Total, Fair Value	41.0
Total, Unrealized Loss	(0.8)
Corporate debt obligations
Schedule of Available-for-sale Securities [Line Items]
Unrealized Loss Less than 12 months, Fair Value	51.6
Unrealized Loss Less than 12 months, Unrealized Loss	(0.5)
Unrealized Loss Greater than 12 months, Fair Value
Unrealized Loss Greater than 12 months, Unrealized Loss
Total, Fair Value	51.6
Total, Unrealized Loss	(0.5)
Mortgaged backed debt obligations guaranteed by GNMA
Schedule of Available-for-sale Securities [Line Items]
Unrealized Loss Less than 12 months, Fair Value	82.1
Unrealized Loss Less than 12 months, Unrealized Loss	(1.5)
Unrealized Loss Greater than 12 months, Fair Value
Unrealized Loss Greater than 12 months, Unrealized Loss
Total, Fair Value	82.1
Total, Unrealized Loss	$ (1.5)

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Product Warranties

6 Months Ended

Jun. 28, 2013

Product Warranties

6. Product Warranties

We provide warranties for all of our products. The specific terms and conditions of those warranties vary depending on the product. We provide a basic limited warranty for periods ranging from 90 days to 6 years.

The estimate of warranty liability involves many factors, including the number of units shipped, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of the recorded warranty liability and adjust the amounts as necessary. Other adjustments to accruals for product warranties represent reductions due to favorable experience to previous estimates.

We classify the portion of warranty liability that we expect to incur in the next 12 months as a current liability. We classify the portion of warranty liability that we expect to incur more than 12 months in the future as a long-term liability. Product warranty liabilities are as follows:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Balance – beginning of period	$	15.8		$	17.3		$	15.8		$	17.0
Accruals for product warranties		1.6			1.0			2.8			2.9
Settlements		(0.6	)		(1.3	)		(1.8	)		(2.2	)
Other adjustments to accruals for product warranties		(0.4	)		(0.7	)		(0.4	)		(1.4	)
Balance – end of period	$	16.4		$	16.3		$	16.4		$	16.3
Balance sheet classification - end of period	Balance at 6/28/13			Balance at 6/29/12
Other accrued liabilities	$	6.6		$	7.4
Other long-term liabilities		9.8			8.9
Total product warranty liabilities	$	16.4		$	16.3

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Restructuring and Other Charges - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 0.5	$ 0.9	$ 35.2	$ 106.9
Expiration year of lease obligations			2017
Expected date of last severance payment			2014
January 2013 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected workforce reductions			300
Restructuring expense	3.5		36.3
Expected total cash payments			20.2
Cash payments			12.9
January 2013 Restructuring Plan | Optical Segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			1.0
January 2013 Restructuring Plan | Data segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			34.9
January 2013 Restructuring Plan | Services segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			0.4
October 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected workforce reductions			200
Restructuring expense			0.8
Cumulative pretax restructuring charges incurred to date			10.2
Expected total cash payments			8.6
Cash payments			5.3
October 2012 Restructuring Plan | Optical Segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			2.3
October 2012 Restructuring Plan | Data segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			3.8
October 2012 Restructuring Plan | Services segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			3.3
October 2012 Restructuring Plan | Access segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			0.8
January 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring expense	(4.0)		(2.5)
Cumulative pretax restructuring charges incurred to date			106.3
Expected total cash payments			28.5
Cash payments			26.9
January 2012 Restructuring Plan | Optical Segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			4.4
January 2012 Restructuring Plan | Data segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			98.2
January 2012 Restructuring Plan | Services segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			2.2
January 2012 Restructuring Plan | Access segment
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			1.5
Previous Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Restructuring expense	0.3		0.6
Previous Restructuring Plans | Optical Segment
Restructuring Cost and Reserve [Line Items]
Restructuring expense	0.3		0.3
Previous Restructuring Plans | Data segment
Restructuring Cost and Reserve [Line Items]
Restructuring expense			0.3
Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Restructuring expense	0.4	(2.0)	16.2	22.1
Severance and other termination benefits | January 2013 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected pretax charges			16
Restructuring expense	(0.1)		16.1
Severance and other termination benefits | October 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected pretax charges			10
Restructuring expense	0.7		0.5
Cumulative pretax restructuring charges incurred to date			9.7
Severance and other termination benefits | January 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring expense	(0.1)		(0.2)
Cumulative pretax restructuring charges incurred to date			23.0
Severance and other termination benefits | Previous Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Restructuring expense	(0.1)		(0.2)
Facility- and Asset-Related Charges
Restructuring Cost and Reserve [Line Items]
Restructuring expense		2.9	14.7	35.9
Facility- and Asset-Related Charges | January 2013 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected pretax charges			15
Restructuring expense	3.6		16.0
Facility- and Asset-Related Charges | October 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected pretax charges			1
Restructuring expense			0.3
Cumulative pretax restructuring charges incurred to date			0.5
Facility- and Asset-Related Charges | January 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring expense	(3.9)		(2.3)
Cumulative pretax restructuring charges incurred to date			34.4
Facility- and Asset-Related Charges | Previous Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Restructuring expense	0.3		0.7
Software license and other contract cancellations | January 2013 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected pretax charges			5
Other obligations
Restructuring Cost and Reserve [Line Items]
Restructuring expense	0.1		4.3	1.2
Other obligations | January 2013 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring expense			4.2
Other obligations | January 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			1.2
Other obligations | Previous Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Restructuring expense	0.1		0.1
Accelerated amortization of intangible assets
Restructuring Cost and Reserve [Line Items]
Restructuring expense				47.7
Accelerated amortization of intangible assets | January 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Cumulative pretax restructuring charges incurred to date			$ 47.7

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Effect of Derivative Instruments not Designated as Hedging Instruments on Consolidated Statements of Operations (Detail) (Foreign Currency Forward And Option Contracts, USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 28, 2013		Jun. 29, 2012		Jun. 28, 2013		Jun. 29, 2012
Foreign Currency Forward And Option Contracts
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in Other Expense, net	$ 3.2	[1]	$ (2.0)	[1]	$ (4.5)	[1]	$ (0.6)	[1]

[1] The gains or losses from changes in the fair value of the derivative contracts are generally offset by gains or losses of the underlying transactions being hedged.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 28, 2013

Accumulated Other Comprehensive Income

9. Accumulated Other Comprehensive Income

Accumulated other comprehensive income has no impact on our net loss but is reflected in our consolidated balance sheet through adjustments to stockholders’ equity. Accumulated other comprehensive income derives from unrealized gains (losses) and related adjustments on available-for-sale securities, unrealized gains (losses) on cash flow hedges, foreign currency translation adjustments, unrecognized prior service costs and unrecognized net gains (losses) on our retiree medical plan.

Accumulated other comprehensive income (net of tax) for the first six months of 2013 consists of the following:

	Unrealized Net Gain (Loss) on Available-for- Sale Securities			Unrealized net Gain on Cash Flow Hedges		Foreign Currency Translation Adjustments			Unrecognized Prior Service Cost			Unrecognized Net Gain on Retiree Medical Plan		Accumulated Other Comprehensive Income
Balance at December 28, 2012	$	2.4		$	—	$	94.9		$	(0.1	)	$	1.8	$	99.0
Amounts reclassified from other comprehensive income		(2.0	)		—		—			—			—		(2.0	)
Other comprehensive (loss) gain		(3.3	)		0.7		(7.2	)		—			—		(9.8	)
Net other comprehensive loss		(5.3	)		0.7		(7.2	)		—			—		(11.8	)
Balance at June 28, 2013	$	(2.9	)	$	0.7	$	87.7		$	(0.1	)	$	1.8	$	87.2

Amounts reclassified from accumulated other comprehensive income to net loss in the Consolidated Statements of Operations were as follows:

	Second Quarter
Details about Accumulated Other Comprehensive Income Components	6/28/13			6/29/12			Affected Line Item in the Consolidated Statements of Operations
Unrealized net (loss) gain on available-for-sale securities	$	(0.1	)	$	0.3		Other expense, net
		—			(0.1	)	Income tax expense
	$	(0.1	)	$	0.2		Net of tax
	Six Months
Details about Accumulated Other Comprehensive Income Components	6/28/13			6/29/12			Affected Line Item in the Consolidated Statements of Operations
Unrealized net gain on available-for-sale securities	$	2.6		$	0.3		Other expense, net
		(0.6	)		—		Income tax expense
	$	2.0		$	0.3		Net of tax

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Derivative Financial Instruments

6 Months Ended

Jun. 28, 2013

Derivative Financial Instruments

5. Derivative Financial Instruments

Financial Contracts and Market Risk

We conduct business on a global basis in U.S. and foreign currencies, subjecting us to risks associated with fluctuating foreign exchange rates. To mitigate these risks, we use derivative foreign exchange contracts to address nonfunctional exposures that are expected to be settled in one year or less. The derivative foreign exchange contracts consist of foreign currency forward and option contracts.

Derivative financial contracts involve elements of market and credit risk. The market risk that results from these contracts relates to changes in foreign currency exchange rates, which generally are offset by changes in the value of the underlying assets or liabilities being held. Credit risk relates to the risk of nonperformance by a counterparty to one of the derivative contracts. We do not believe there is a significant credit risk associated with our hedging activities. We monitor the counterparties’ credit ratings and other market data to minimize credit risk. In addition, we also limit the aggregate contract amount entered into with any one financial institution to mitigate credit risk.

Cash Flow Hedges

We use foreign currency forward and option contracts, designated as cash flow hedges, to mitigate currency risk related to an imbalance of nonfunctional currency denominated costs and related revenue. We conduct monthly effectiveness tests of these hedging relationships on a spot-to-spot basis, excluding forward points. Effective gains and losses from derivative contracts are recorded in Accumulated other comprehensive income until the underlying transactions occur, at which time they are reclassified to Total Revenue. Ineffectiveness is recorded to Other expense, net. If it becomes probable that an anticipated transaction that is hedged will not occur, we immediately reclassify the gains or losses related to that hedge from Accumulated other comprehensive income to Other expense, net. We continue to monitor the Company’s overall currency

exposure and may elect to add additional cash flow hedges in the future if deemed necessary. At June 28, 2013, we had a net unrealized gain of $0.7 million in Accumulated other comprehensive income, which is expected to be reclassified to income within the next 12 months. At June 28, 2013, we held derivatives designated as cash flow hedges in one currency, with a gross notional equivalent of $14.1 million. We did not hold any derivatives designated as cash flow hedges at June 29, 2012.

Balance Sheet Hedges (Non-designated Hedges)

Short-term monetary assets and liabilities denominated in currencies other than the functional currency are remeasured through income as foreign currency rates fluctuate. Changes in the value of derivative contracts intended to offset these fluctuations are also recorded in income. These derivative contracts are not designated as hedges. At June 28, 2013, we held non-designated foreign currency forward contracts in 13 currencies, with a gross notional equivalent of $110.1 million. At June 29, 2012, we held non-designated foreign currency forward contracts in 14 currencies, with a gross notional equivalent of $212.3 million.

Net Investment Hedges

Periodically we may enter into foreign currency contracts designated as net investment hedges to hedge a portion of our net investment in one of our foreign subsidiaries to preserve the U.S. dollar value of our Euro cash. Effective changes in the fair value of these contracts, less applicable deferred income taxes are recorded within Accumulated other comprehensive income. Those amounts will be reflected in income only when we dispose of the investment in the foreign subsidiary. We conduct monthly effectiveness tests of net investment hedges on a spot-to-spot basis, excluding forward points, and any measurement of ineffectiveness is recorded in income. As of June 28, 2013, we had a net unrealized gain of $16.1 million in Accumulated other comprehensive income related to settled contracts. At June 28, 2013, we did not have any net investment hedges outstanding. As of June 29, 2012, we had a net unrealized gain of $21.2 million in Accumulated other comprehensive income related to settled contracts.

The fair value of derivative instruments in the Consolidated Balance Sheet as of June 28, 2013, was as follows:

	Asset Derivatives Reported in Miscellaneous Receivables and Other Current Assets		Liability Derivatives Reported in Other Accrued Liabilities
Cash flow hedges	$	0.6	$	—
Balance sheet hedges (Non-designated hedges)		0.1		0.2
Total derivatives	$	0.7	$	0.2

The fair value of derivative instruments in the Consolidated Balance Sheet as of December 28, 2012, was as follows:

	Asset Derivatives Reported in Miscellaneous Receivables and Other Current Assets		Liability Derivatives Reported in Other Accrued Liabilities
Balance sheet hedges (Non-designated hedges)	$	—	$	0.1

The effect of derivative instruments designated as hedging instruments on the Consolidated Statements of Operations follows:

	Three Months Ended
	Gain Recognized in Accumulated  OCI, net (Effective Portion)				Gain Recognized in Revenue				(Loss) Gain Recognized in  Other Expense net: Excluded from Effectiveness Testing Gain (Loss)
	6/28/13		6/29/12		6/28/13		6/29/12		6/28/13			6/29/12
Cash flow hedges	$	0.7	$	—	$	0.3	$	—	$	(0.1	)	$	—
Net investment hedges	$	—	$	6.7		N/A		N/A	$	—		$	0.1
	Six Months Ended
	Gain Recognized in Accumulated OCI, net (Effective Portion)				Gain Recognized in Revenue				(Loss) Gain Recognized in Other Expense, net: Excluded from Effectiveness Testing Gain (Loss)
	6/28/13		6/29/12		6/28/13		6/29/12		6/28/13			6/29/12
Cash flow hedges	$	0.7	$	—	$	0.3	$	—	$	(0.1	)	$	—
Net investment hedges	$	—	$	2.5		N/A		N/A	$	—		$	0.2

The effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations follows:

	Second Quarter					Six Months
	Gain (Loss) Recognized in Other Expense, net 1					Loss Recognized in Other Expense, net 1
	6/28/13		6/29/12			6/28/13			6/29/12
Foreign currency forward and option contracts	$	3.2	$	(2.0	)	$	(4.5	)	$	(0.6	)

¹ The gains or losses from changes in the fair value of the derivative contracts are generally offset by gains or losses of the underlying transactions being hedged.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012
Operating Activities
Net loss	$ (63.7)	$ (144.5)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	19.5	26.6
Loss on disposal of property, plant and equipment	0.5	0.8
Equity-based compensation	5.1	10.4
Deferred income taxes	(7.9)	(0.1)
Restructuring and other charges	35.2	106.9
Net gain on investments in marketable securities	(1.0)
Net changes in assets and liabilities:
Accounts receivable	36.8	33.8
Inventories	(14.3)	18.3
Miscellaneous receivables and other current assets	9.0	6.4
Other assets	0.3	(0.8)
Accounts payable	0.5	(22.8)
Restructuring and other charges	(23.5)	(26.6)
Deferred revenue	5.4	(6.1)
Other accrued liabilities	(22.8)	(6.1)
Income taxes	0.3	(1.2)
Other long-term liabilities	(1.6)	(0.6)
Net Cash Used for Operating Activities	(22.2)	(5.6)
Investing Activities
Capital expenditures	(7.8)	(9.9)
Disposals of property, plant and equipment	0.2
Payments for purchases of investments	(211.0)	(232.0)
Proceeds from sales and maturities of investments	318.3	303.2
Net Cash Provided by Investing Activities	99.7	61.3
Financing Activities
Repurchase of common stock	(31.8)	(3.0)
Dividends paid		(14.6)
Net Cash Used for Financing Activities	(31.8)	(17.6)
Effect of Exchange Rate Changes on Cash	(2.2)	(4.3)
Net Increase in Cash and Cash Equivalents	43.5	33.8
Cash and Cash Equivalents - Beginning of Year	223.7	132.7
Cash and Cash Equivalents - End of Period	$ 267.2	$ 166.5

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Schedule of Equity Based Compensation Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Equity-based compensation expense before income taxes	$ 2.0	$ 4.8	$ 5.1	$ 10.4
Income tax benefit		(0.1)	(0.1)	(0.2)
Total equity-based compensation expense after income taxes	2.0	4.7	5.0	10.2
Cost of Revenue - products
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Equity-based compensation expense before income taxes	0.2	0.2	0.4	0.6
Cost of Revenue - services
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Equity-based compensation expense before income taxes	0.2	0.4	0.6	0.9
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Equity-based compensation expense before income taxes	0.3	1.4	0.9	3.2
Sales And Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Equity-based compensation expense before income taxes	0.3	0.8	0.8	1.7
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Equity-based compensation expense before income taxes	$ 1.0	$ 2.0	$ 2.4	$ 4.0

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Schedule of Assumptions Used to Calculate Weighted Average Fair Value of Stock Option Grants (Detail)	6 Months Ended
	Jun. 29, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	43.30%
Risk-free interest rate	0.90%
Expected term (in years)	5 years 3 months 18 days
Expected dividend yield	2.00%

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Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Millions, unless otherwise specified	Jun. 28, 2013	Dec. 28, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	$ 274.5	$ 380.7
Other marketable securities	244.1	195.1
Derivative financial instruments	0.7
Total assets	519.3	575.8
Loan related to other marketable securities	244.1	195.1
Derivative financial instruments	0.2	0.1
Total liabilities	244.3	195.2
U.S. government debt obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	52.0	31.1
Corporate debt obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	57.7	9.6
Mortgaged backed debt obligations guaranteed by GNMA
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	104.1	55.5
Certificates of deposit guaranteed by FDIC
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	1.2	1.2
Foreign government debt obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	26.4	161.1
Foreign corporate debt obligations guaranteed by foreign governments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	33.1	122.2
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	52.0	31.1
Other marketable securities	244.1	195.1
Total assets	296.1	226.2
Loan related to other marketable securities	244.1	195.1
Total liabilities	244.1	195.1
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government debt obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	52.0	31.1
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	222.5	349.6
Derivative financial instruments	0.7
Total assets	223.2	349.6
Derivative financial instruments	0.2	0.1
Total liabilities	0.2	0.1
Significant Other Observable Inputs (Level 2) | Corporate debt obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	57.7	9.6
Significant Other Observable Inputs (Level 2) | Mortgaged backed debt obligations guaranteed by GNMA
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	104.1	55.5
Significant Other Observable Inputs (Level 2) | Certificates of deposit guaranteed by FDIC
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	1.2	1.2
Significant Other Observable Inputs (Level 2) | Foreign government debt obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	26.4	161.1
Significant Other Observable Inputs (Level 2) | Foreign corporate debt obligations guaranteed by foreign governments
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Investments in marketable securities	$ 33.1	$ 122.2

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Stock Repurchase Programs - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013 $600 Million Repurchase Plan	Jun. 28, 2013 $600 Million Repurchase Plan	Jun. 28, 2013 Other Stock Repurchases	Jun. 28, 2013 Other Stock Repurchases
Equity, Class of Treasury Stock [Line Items]
Number of stock repurchase programs authorized by the Board of Directors	2
Cumulative Repurchase of common stock - shares				70.4
Authorization to repurchase outstanding common stock				$ 600
Cumulative Repurchase of outstanding common stock				405.7
Stock available to be purchased under stock repurchase program				194.3
Purchase of treasury stock, shares			2.3	13.8	0.1	0.7
Repurchase of outstanding common stock	$ 31.8	$ 3.0	$ 4.6	$ 30.3	$ 0.2	$ 1.5

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Stock Repurchase Programs

6 Months Ended

Jun. 28, 2013

Stock Repurchase Programs

12. Stock Repurchase Programs

We repurchase outstanding common stock under two plans authorized by our Board of Directors. In addition, we purchase shares to cover withholding taxes on shares issued under employee stock plans.

We intend to use cash generated by employee stock option exercises (other than those of Company officers and board members) to repurchase stock through the use of a 10b5-1 plan. These purchases were negligible in the second quarter and first six months of 2013 under this plan.

As of June 28, 2013, we have purchased 70.4 million shares of our common stock under the $600 million repurchase plan at a total cost of $405.7 million, leaving $194.3 million available to be purchased under this plan. We purchased 2.3 million shares for $4.6 million in the second quarter of 2013, and 13.8 million shares for $30.3 million in the first six months of 2013 under this plan.

We may change our repurchase activity and we provide no assurance that we will continue our repurchase activity in the future.

In addition, we purchased 0.1 million shares for $0.2 million in the second quarter of 2013 and 0.7 million shares for $1.5 million in the first six months of 2013 to cover minimum withholding taxes on shares issued under employee stock plans.

We record repurchased shares as Treasury stock.

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Income Taxes

6 Months Ended

Jun. 28, 2013

Income Taxes

8. Income Taxes

We recorded tax expense of $3.0 million in the second quarter and zero for the first six months of 2013. Our tax expense results in an effective tax rate that differs from the federal statutory rate of 35% due to limitations on our ability to record a tax benefit on losses from domestic operations, combined with tax expense on income from foreign operations.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 28, 2013

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are:

			Fair Value Measurements at June 28, 2013
	Balance at 6/28/13		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Investments in marketable securities
U.S. government debt obligations	$	52.0	$	52.0	$	—	$	—
Corporate debt obligations		57.7		—		57.7		—
Mortgaged backed debt obligations guaranteed by GNMA		104.1		—		104.1		—
Certificates of deposit guaranteed by FDIC		1.2		—		1.2		—
Foreign government debt obligations		26.4		—		26.4		—
Foreign corporate debt obligations guaranteed by foreign governments		33.1		—		33.1		—
Subtotal		274.5		52.0		222.5		—
Other marketable securities		244.1		244.1		—		—
Derivative financial instruments		0.7		—		0.7		—
Total assets	$	519.3	$	296.1	$	223.2	$	—
Liabilities
Loan related to other marketable securities	$	244.1	$	244.1	$	—	$	—
Derivative financial instruments		0.2		—		0.2		—
Total liabilities	$	244.3	$	244.1	$	0.2	$	—

			Fair Value Measurements at December 28, 2012
	Balance at 12/28/12		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Investments in marketable securities
U.S. government debt obligations	$	31.1	$	31.1	$	—	$	—
Corporate debt obligations		9.6		—		9.6		—
Mortgaged backed debt obligations guaranteed by GNMA		55.5		—		55.5		—
Certificates of deposit guaranteed by FDIC		1.2		—		1.2		—
Foreign government debt obligations		161.1		—		161.1		—
Foreign corporate debt obligations guaranteed by foreign governments		122.2		—		122.2		—
Subtotal		380.7		31.1		349.6		—
Other marketable securities		195.1		195.1		—		—
Total assets	$	575.8	$	226.2	$	349.6	$	—
Liabilities
Loan related to other marketable securities	$	195.1	$	195.1	$	—	$	—
Derivative financial instruments		0.1		—		0.1		—
Total liabilities	$	195.2	$	195.1	$	0.1	$	—

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Net Loss Per Share

6 Months Ended

Jun. 28, 2013

Net Loss Per Share

13. Net Loss Per Share

The following table sets forth the computation of net loss per share:

	Second Quarter						Six Months
	6/28/13			6/29/12			6/28/13			6/29/12
Numerator:
Net loss	$	(7.8	)	$	(4.7	)	$	(63.7	)	$	(144.5	)
Denominator:
Denominator for basic net loss per share – weighted average shares outstanding		356.1			367.1			357.7			366.4
Effect of dilutive securities:
Employee stock options and restricted and performance stock awards		—			—			—			—
Denominator for diluted net loss per share – adjusted weighted average shares outstanding and assumed conversions		356.1			367.1			357.7			366.4
Net loss per share, basic	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)
Net loss per share, diluted1	$	(0.02	)	$	(0.01	)	$	(0.18	)	$	(0.39	)

¹  Dilutive securities are not included in the computation of diluted earnings per share when a company is in a loss position. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for the second quarter and first six months of 2013 and the second quarter and first six months of 2012 are the same. Diluted weighted average shares outstanding were 356.4 million in the second quarter of 2013, 358.9 million in the first six months of 2013, and 368.1 million in the second quarter of 2012 and 368.2 million in the first six months of 2012.

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Document and Entity Information	6 Months Ended
	Jun. 28, 2013	Jul. 26, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 28, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	TLAB
Entity Registrant Name	TELLABS INC
Entity Central Index Key	0000317771
Current Fiscal Year End Date	--12-27
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		355,656,364

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Restructuring and Other Charges (Tables)

6 Months Ended

Jun. 28, 2013

Summary Of Restructuring And Other Charges

The following table summarizes restructuring and other charges recorded for the plans mentioned above, as well as adjustments to reserves recorded for prior restructurings:

	Second Quarter					Six Months
	6/28/13		6/29/12			6/28/13		6/29/12
Severance and other termination benefits	$	0.4	$	(2.0	)	$	16.2	$	22.1
Facility and other exit costs		—		2.9			14.7		35.9
Other obligations		0.1		—			4.3		1.2
Accelerated amortization of intangible assets		—		—			—		47.7
Total restructuring and other charges	$	0.5	$	0.9		$	35.2	$	106.9

Summary Of Restructuring And Other Charges Activity By Segment

The following table summarizes restructuring and other charges activity by segment for the second quarter and the first six months of 2013 and the status of the reserves at June 28, 2013:

			Second Quarter Activity
	Balance at 3/29/13		Restructuring Expense			Cash Payments			Other Activities 1			Balance at 6/28/13
2013 Restructuring Plan
Optical	$	0.6	$	0.1		$	(0.4	)	$	—		$	0.3
Data		15.4		3.4			(7.4	)		(2.4	)		9.0
Access		—		—			—			—			—
Services		0.3		—			(0.3	)		—			—
Subtotal 2013 Restructuring Plan		16.3		3.5			(8.1	)		(2.4	)		9.3
2012 Restructuring Plans
Optical		2.7		—			(1.3	)		—			1.4
Data		9.0		(3.9	)		(1.6	)		(0.8	)		2.7
Access		1.1		—			(0.4	)		—			0.7
Services		1.9		0.6			(1.2	)		—			1.3
Subtotal 2012 Restructuring Plans		14.7		(3.3	)		(4.5	)		(0.8	)		6.1
Previous Restructuring Plans
Optical		0.3		0.3			0.1			—			0.7
Data		2.8		—			(0.4	)		—			2.4
Access		1.1		—			(0.4	)		—			0.7
Services		—		—			—			—			—
Subtotal Previous Restructuring Plans		4.2		0.3			(0.7	)		—			3.8
Total All Restructuring Plans	$	35.2	$	0.5		$	(13.3	)	$	(3.2	)	$	19.2

			Six Months Activity
	Balance at 12/28/12		Restructuring Expense			Cash Payments			Other Activities 1			Balance at 6/28/13
2013 Restructuring Plan
Optical	$	—	$	1.0		$	(0.7	)	$	—		$	0.3
Data		—		34.9			(11.8	)		(14.1	)		9.0
Access		—		—			—			—			—
Services		—		0.4			(0.4	)		—			—
Subtotal 2013 Restructuring Plan		—		36.3			(12.9	)		(14.1	)		9.3
2012 Restructuring Plans
Optical		3.9		(0.4	)		(2.1	)		—			1.4
Data		8.6		(1.7	)		(3.9	)		(0.3	)		2.7
Access		1.5		(0.1	)		(0.7	)		—			0.7
Services		2.8		0.5			(2.0	)		—			1.3
Subtotal 2012 Restructuring Plans		16.8		(1.7	)		(8.7	)		(0.3	)		6.1
Previous Restructuring Plans
Optical		0.6		0.3			(0.2	)		—			0.7
Data		3.1		0.3			(1.0	)		—			2.4
Access		1.4		—			(0.7	)		—			0.7
Services		—		—			—			—			—
Subtotal Previous Restructuring Plans		5.1		0.6			(1.9	)		—			3.8
Total All Restructuring Plans	$	21.9	$	35.2		$	(23.5	)	$	(14.4	)	$	19.2

¹ Other activities include accelerated depreciation of property, plant and equipment to be disposed, the effects of currency translation as well as other changes that do not flow through restructuring expense.

XML

Computation of Net Loss Per Share (Parenthetical) (Detail) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2013	Jun. 29, 2012	Jun. 28, 2013	Jun. 29, 2012
Earnings Per Share Disclosure [Line Items]
Diluted weighted average shares outstanding in the absence of a loss	356.4	368.1	358.9	368.2

XML

Computation of Net Loss Per Share (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 28, 2013		Jun. 29, 2012		Jun. 28, 2013		Jun. 29, 2012
Earnings Per Share Disclosure [Line Items]
Net loss	$ (7.8)		$ (4.7)		$ (63.7)		$ (144.5)
Denominator for basic net loss per share - weighted average shares outstanding	356.1		367.1		357.7		366.4
Employee stock options and restricted and performance stock awards
Denominator for diluted net loss per share - adjusted weighted average shares outstanding and assumed conversions	356.1		367.1		357.7		366.4
Net loss per share, basic	$ (0.02)		$ (0.01)		$ (0.18)		$ (0.39)
Net loss per share, diluted	$ (0.02)	[1]	$ (0.01)	[1]	$ (0.18)	[1]	$ (0.39)	[1]

[1] Dilutive securities are not included in the computation of diluted earnings per share when a company is in a loss position. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for the second quarter and first six months of 2013 and the second quarter and first six months of 2012 are the same. Diluted weighted average shares outstanding were 356.4 million in the second quarter of 2013, 358.9 million in the first six months of 2013, and 368.1 million in the second quarter of 2012 and 368.2 million in the first six months of 2012.