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Operating Segments and Geographic Information (Tables)
12 Months Ended
Jul. 01, 2017
Segment Reporting [Abstract]  
Schedule of information on reportable segments
The segment information for all periods presented has been revised to be comparable with the changes implemented in the first quarter of fiscal 2016 in the Company’s segment reporting measures.
Information on reportable segments is as follows (in millions):
 
Year Ended July 1, 2017
 
Network and Service Enablement
 
 
 
 
 
 
 
 
 
 
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Reconciling Items
 
Consolidated GAAP Measures
Net revenue
$
444.0

 
$
135.2

 
$
579.2

 
$
232.2

 
$
811.4

 
$

 
$
811.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
286.3

 
86.2

 
372.5

 
133.8

 
506.3

 
(20.3
)
 
486.0

Gross margin
64.5
%
 
63.8
%
 
64.3
%
 
57.6
%
 
62.4
%
 
 
 
59.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
 
 
 
7.3

 
100.3

 
107.6

 
(94.0
)
 
13.6

Operating margin
 
 
 
 
1.3
%
 
43.2
%
 
13.3
%
 
 
 
1.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended July 2, 2016
 
Network and Service Enablement
 
 
 
 
 
 
 
 
 
 
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Reconciling Items
 
Consolidated GAAP Measures
Net revenue
$
504.6

 
$
153.6

 
$
658.2

 
$
248.1

 
$
906.3

 
$

 
$
906.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
329.7

 
99.4

 
429.1

 
143.1

 
572.2

 
(22.5
)
 
549.7

Gross margin
65.3
%
 
64.7
%
 
65.2
%
 
57.7
%
 
63.1
%
 
 
 
60.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
12.7

 
102.9

 
115.6

 
(199.9
)
 
(84.3
)
Operating margin
 
 
 
 
1.9
%
 
41.5
%
 
12.8
%
 
 
 
(9.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended June 27, 2015
 
Network and Service Enablement
 
 
 
 
 
 
 
 
 
 
 
Network Enablement
 
Service Enablement
 
Network and
Service
Enablement
 
Optical Security and Performance Products
 
Total Segment Measures
 
Reconciling Items
 
Consolidated GAAP Measures
Net revenue
$
506.8

 
$
174.3

 
$
681.1

 
$
192.8

 
$
873.9

 
$

 
$
873.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
333.9

 
119.2

 
453.1

 
104.3

 
557.4

 
(37.3
)
 
520.1

Gross margin
65.9
%
 
68.4
%
 
66.5
%
 
54.1
%
 
63.8
%
 
 
 
59.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
(0.1
)
 
68.1

 
68.0

 
(143.8
)
 
(75.8
)
Operating margin
 
 
 
 
%
 
35.3
%
 
7.8
%
 
 
 
(8.7
)%

 
Years Ended
 
July 1, 2017
 
July 2, 2016
 
June 27, 2015
Corporate reconciling items impacting gross profit:
 
 
 
 
 
Total segment gross profit
$
506.3

 
$
572.2

 
$
557.4

Stock-based compensation
(3.6
)
 
(4.8
)
 
(4.2
)
Amortization of intangibles
(14.3
)
 
(17.3
)
 
(31.9
)
Other charges unrelated to core operating performance
(2.4
)
 
(0.4
)
 
(1.2
)
GAAP gross profit
$
486.0

 
$
549.7

 
$
520.1

 
 
 
 
 
 
Corporate reconciling items impacting operating income:
 
 
 
 
 
Total segment operating income
$
107.6

 
$
115.6

 
$
68.0

Stock-based compensation
(33.2
)
 
(42.4
)
 
(47.5
)
Amortization of intangibles
(28.3
)
 
(31.9
)
 
(51.4
)
Impairment of goodwill

 
(91.4
)
 

Other charges unrelated to core operating performance (1)(2)(3)
(10.9
)
 
(23.7
)
 
(18.1
)
Restructuring and related charges
(21.6
)
 
(10.5
)
 
(26.8
)
GAAP operating income (loss) from continuing operations
$
13.6

 
$
(84.3
)
 
$
(75.8
)


(1)
During the year ended July 1, 2017, other charges unrelated to core operating performance primarily consisted of $5.7 million loss on disposal of long-lived assets and $1.5 million of Viavi-specific charges related to the Separation.

(2)
During the year ended July 2, 2016, other charges unrelated to core operating performance primarily consisted of (a) an $8.4 million charge related to a litigation ruling impacting our U.K. pension obligation, (b) $5.0 million of Viavi-specific charges related to the Separation and (c) $3.5 million of non-recurring incremental severance and related costs upon the exit of a key executive.
(3)
During the year ended June 27, 2015, other charges unrelated to core operating performance primarily consisted of $9.8 million of Viavi-specific charges related to the Separation and $3.6 million IPR&D impairment charge for an ongoing project related to the fiscal 2014 acquisition of Trendium as discussed in “Note 9. Acquired Developed Technology and Other Intangibles.”
The following table presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue (dollars in millions):
 
Years Ended
 
July 1, 2017
 
July 2, 2016
 
June 27, 2015
Americas:
 
 
 
 
 
 
 
 
 
 
 
United States
$
307.3

 
37.9
%
 
$
396.6

 
43.8
%
 
$
424.3

 
48.5
%
Other Americas
71.3

 
8.8
%
 
$
66.0

 
7.3
%
 
$
62.5

 
7.2
%
Total Americas
$
378.6

 
46.7
%
 
$
462.6

 
51.1
%
 
$
486.8

 
55.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Asia-Pacific
 
 
 
 
 
 
 
 
 
 
 
Greater China
$
100.8

 
12.4
%
 
$
103.2

 
11.3
%
 
$
83.1

 
9.5
%
 Other Asia
72.4

 
8.9
%
 
63.1

 
7.0
%
 
61.4

 
7.0
%
          Total Asia-Pacific
$
173.2

 
21.3
%
 
$
166.3

 
18.3
%
 
$
144.5

 
16.5
%
 
 
 
 
 
 
 
 
 
 
 
 
EMEA:
 
 
 
 
 
 
 
 
 
 
 
Switzerland
$
124.0

 
15.3
%
 
$
135.6

 
15.0
%
 
$
97.7

 
11.2
%
Other EMEA
135.6

 
16.7
%
 
141.8

 
15.6
%
 
144.9

 
16.6
%
Total EMEA
$
259.6

 
32.0
%
 
$
277.4

 
30.6
%
 
$
242.6

 
27.8
%
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
$
811.4

 
100.0
%
 
$
906.3

 
100.0
%
 
$
873.9

 
100.0
%
Following the separation from Lumentum, one customer served by our OSP segment generated 10% or more of Viavi net revenue from continuing operations during fiscal 2017, 2016 and 2015 as summarized below (in millions):
 
Years Ended
 
July 1, 2017
 
July 2, 2016
 
June 27, 2015
Customer A - OSP customer
$
166.8

 
$
190.1

 
$
143.0

Property, plant and equipment, net were identified based on the operations in the corresponding geographic areas (in millions):
 
Years Ended
 
July 1, 2017
 
July 2, 2016
United States
$
76.0

 
$
85.6

Other Americas
4.4

 
4.3

China
41.1

 
27.3

Other Asia-Pacific
5.0

 
4.8

Germany
7.9

 
7.9

Other EMEA
2.5

 
3.1

Total property, plant and equipment, net
$
136.9

 
$
133.0