Operating Segments and Geographic Information (Tables)

6 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Schedule of Information on Reportable Segments

The following tables present information on the Company’s reportable segments for the three months ended January 1, 2022 and January 2, 2021 (in millions):

	Three Months Ended January 1, 2022
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	189.6		$	17.2		$	206.8		$	70.6		$	—	$	277.4
Service revenue	24.8			12.6			37.4			—			—		37.4
Net revenue	$	214.4		$	29.8		$	244.2		$	70.6		$	—	$	314.8
Gross profit	$	138.0		$	21.4		$	159.4		$	39.7		$	(8.6)	$	190.5
Gross margin	64.4		%	71.8		%	65.3		%	56.2		%			60.5		%
Operating income							$	45.6		$	27.7		$	(24.0)	$	49.3
Operating margin							18.7		%	39.2		%			15.7		%

	Three Months Ended January 2, 2021
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	156.4		$	12.9		$	169.3		$	92.8		$	—	$	262.1
Service revenue	24.5			12.9			37.4			0.4			—		37.8
Net revenue	$	180.9		$	25.8		$	206.7		$	93.2		$	—	$	299.9
Gross profit	$	113.3		$	17.6		$	130.9		$	58.4		$	(9.2)	$	180.1
Gross margin	62.6		%	68.2		%	63.3		%	62.7		%			60.1		%
Operating income							$	22.2		$	44.6		$	(24.5)	$	42.3
Operating margin							10.7		%	47.9		%			14.1		%

	Three Months Ended
	January 1, 2022		January 2, 2021
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	199.1	$	189.3
Stock-based compensation	(1.2)		(1.2)
Amortization of intangibles	(7.4)		(8.4)
Other benefits unrelated to core operating performance (1)	—		0.4
GAAP gross profit	$	190.5	$	180.1
Corporate reconciling items impacting operating income:
Total segment operating income	$	73.3	$	66.8
Stock-based compensation	(13.3)		(9.9)
Amortization of intangibles	(10.0)		(16.5)
Change in fair value of contingent liability	—		1.5
Other (charges) benefits unrelated to core operating performance (1)	(0.8)		0.6
Restructuring and related benefits (charges)	0.1		(0.2)
GAAP operating income from continuing operations	$	49.3	$	42.3

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

	Six Months Ended January 1, 2022
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	369.2		$	28.1		$	397.3		$	169.2		$	—	$	566.5
Service revenue	50.1			24.7			74.8			0.3			—		75.1
Net revenue	$	419.3		$	52.8		$	472.1		$	169.5		$	—	$	641.6
Gross profit	$	270.7		$	36.1		$	306.8		$	96.8		$	(18.1)	$	385.5
Gross margin	64.6		%	68.4		%	65.0		%	57.1		%			60.1		%
Operating income							$	76.3		$	71.3		$	(51.4)	$	96.2
Operating margin							16.2		%	42.1		%			15.0		%

	Six Months Ended January 2, 2021
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items (1)		Consolidated GAAP Measures
Product revenue	$	295.6		$	20.6		$	316.2		$	193.8		$	—	$	510.0
Service revenue	47.4			26.6			74.0			0.6			—		74.6
Net revenue	$	343.0		$	47.2		$	390.2		$	194.4		$	—	$	584.6
Gross profit	$	216.8		$	31.9		$	248.7		$	119.4		$	(18.6)	$	349.5
Gross margin	63.2		%	67.6		%	63.7		%	61.4		%			59.8		%
Operating income							$	35.5		$	91.9		$	(53.8)	$	73.6
Operating margin							9.1		%	47.3		%			12.6		%

	Six Months Ended
	January 1, 2022		January 2, 2021
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	403.6	$	368.1
Stock-based compensation	(2.8)		(2.4)
Amortization of intangibles	(15.3)		(16.6)
Other benefits unrelated to core operating performance (1)	—		0.4
GAAP gross profit	$	385.5	$	349.5
Corporate reconciling items impacting operating income:
Total segment operating income	$	147.6	$	127.4
Stock-based compensation	(26.9)		(22.4)
Amortization of intangibles	(20.6)		(33.2)
Change in fair value of contingent liability	(0.3)		1.5
Other charges unrelated to core operating performance (1)	(3.7)		(0.1)
Restructuring and related benefits	0.1		0.4
GAAP operating income from continuing operations	$	96.2	$	73.6

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

Schedule of Revenue by Geographic Regions

The following table presents net revenue by the three geographic regions in which the Company operates and net revenue from countries that exceeded 10% of the Company’s total net revenue for the three and six months ended January 1, 2022 and January 2, 2021 (in millions):

	Three Months Ended
	January 1, 2022						January 2, 2021
	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	87.4	$	12.8	$	100.2	$	74.4	$	14.2	$	88.6
Other Americas	21.4		4.1		25.5		16.0		3.8		19.8
Total Americas	$	108.8	$	16.9	$	125.7	$	90.4	$	18.0	$	108.4
Asia-Pacific:
Greater China	$	54.4	$	2.1	$	56.5	$	69.9	$	3.3	$	73.2
Other Asia-Pacific	29.6		4.9		34.5		20.0		3.2		23.2
Total Asia-Pacific	$	84.0	$	7.0	$	91.0	$	89.9	$	6.5	$	96.4
EMEA:
Switzerland	$	11.6	$	0.1	$	11.7	$	19.8	$	0.1	$	19.9
Other EMEA	73.0		13.4		86.4		62.0		13.2		75.2
Total EMEA	$	84.6	$	13.5	$	98.1	$	81.8	$	13.3	$	95.1
Total net revenue	$	277.4	$	37.4	$	314.8	$	262.1	$	37.8	$	299.9

	Six Months Ended
	January 1, 2022						January 2, 2021
	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	167.3	$	26.2	$	193.5	$	138.1	$	28.3	$	166.4
Other Americas	46.4		7.3		53.7		30.3		7.1		37.4
Total Americas	$	213.7	$	33.5	$	247.2	$	168.4	$	35.4	$	203.8
Asia-Pacific:
Greater China	$	124.2	$	4.9	$	129.1	$	147.2	$	5.0	$	152.2
Other Asia	79.1		9.1		88.2		45.4		7.0		52.4
Total Asia-Pacific	$	203.3	$	14.0	$	217.3	$	192.6	$	12.0	$	204.6
EMEA:
Switzerland	$	24.7	$	0.2	$	24.9	$	37.7	$	0.2	$	37.9
Other EMEA	124.8		27.4		152.2		111.3		27.0		138.3
Total EMEA	$	149.5	$	27.6	$	177.1	$	149.0	$	27.2	$	176.2
Total net revenue	$	566.5	$	75.1	$	641.6	$	510.0	$	74.6	$	584.6