Operating Segments and Geographic Information (Tables)

12 Months Ended

Jul. 01, 2023

Schedule of Information on Reportable Segments

Information on the Company’s reportable segments is as follows (in millions):


	Year Ended July 1, 2023

	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items		Consolidated GAAP Measures
Product revenue	$	583.9		$	47.4		$	631.3		$	304.8		$	—	$	936.1
Service revenue	113.6			56.3			169.9			0.1			—		170.0
Net revenue	$	697.5		$	103.7		$	801.2		$	304.9		$	—	$	1,106.1

Gross profit	440.1			70.1			510.2			158.6			(30.0)		638.8
Gross margin	63.1		%	67.6		%	63.7		%	52.0		%			57.8		%

Operating income							61.2			111.3			(90.1)		82.4
Operating margin							7.6		%	36.5		%			7.4		%


	Year Ended July 2, 2022

	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items		Consolidated GAAP Measures
Product revenue	$	739.7		$	53.0		$	792.7		$	342.8		$	—	$	1,135.5
Service revenue	106.1			50.3			156.4			0.5			—		156.9
Net revenue	$	845.8		$	103.3		$	949.1		$	343.3		$	—	$	1,292.4

Gross profit	543.6			71.5			615.1			193.6			(35.2)		773.5
Gross margin	64.3		%	69.2		%	64.8		%	56.4		%			59.8		%

Operating income							147.8			139.0			(101.8)		185.0
Operating margin							15.6		%	40.5		%			14.3		%

	Year Ended July 3, 2021

	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items		Consolidated GAAP Measures
Product revenue	$	650.5		$	40.6		$	691.1		$	360.3		$	—	$	1,051.4
Service revenue	96.1			50.7			146.8			0.7			—		147.5
Net revenue	$	746.6		$	91.3		$	837.9		$	361.0		$	—	$	1,198.9

Gross profit	474.2			59.9			534.1			218.1			(37.8)		714.4
Gross margin	63.5		%	65.6		%	63.7		%	60.4		%			59.6		%

Operating income							92.2			161.3			(111.3)		142.2
Operating margin							11.0		%	44.7		%			11.9		%


	Years Ended
	July 1, 2023		July 2, 2022		July 3, 2021
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	668.8	$	808.7	$	752.2

Stock-based compensation	(4.8)		(5.2)		(4.8)
Amortization of intangibles	(24.6)		(30.0)		(33.2)
Other (charges) benefits unrelated to core operating performance(1)	(0.6)		—		0.2
GAAP gross profit	$	638.8	$	773.5	$	714.4

Corporate reconciling items impacting operating income:
Total segment operating income	$	172.5	$	286.8	$	253.5

Stock-based compensation	(51.2)		(52.3)		(48.3)
Amortization of intangibles	(33.3)		(39.7)		(66.5)

Change in fair value of contingent liability	4.5		(0.3)		5.3
Other benefits (charges) unrelated to core operating performance(1)	2.0		(9.6)		(3.4)
Restructuring and related (charges) benefits	(12.1)		0.1		1.6
GAAP operating income from continuing operations	$	82.4	$	185.0	$	142.2

(1) During the years ended July 1, 2023, July 2, 2022, and July 3, 2021 other benefits (charges) unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, accretion of debt discount, intangible impairment and loss on disposal of long-lived assets.

The following table presents net revenue by the three geographic regions the Company operates in and net revenue from countries that exceeded 10% of the Company’s total net revenue (in millions):


	Years Ended
	July 1, 2023						July 2, 2022						July 3, 2021

	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	303.5	$	59.4	$	362.9	$	332.5	$	56.4	$	388.9	$	275.8	$	54.2	$	330.0
Other Americas	60.3		14.9		75.2		82.2		14.6		96.8		72.7		12.9		85.6
Total Americas	$	363.8	$	74.3	$	438.1	$	414.7	$	71.0	$	485.7	$	348.5	$	67.1	$	415.6

Asia-Pacific:
Greater China	$	203.5	$	7.4	$	210.9	$	247.5	$	8.9	$	256.4	$	265.8	$	11.2	$	277.0
Other Asia	140.2		26.4		166.6		185.2		20.1		205.3		118.5		15.0		133.5
Total Asia-Pacific	$	343.7	$	33.8	$	377.5	$	432.7	$	29.0	$	461.7	$	384.3	$	26.2	$	410.5




EMEA:	$	228.6	$	61.9	$	290.5	$	288.1	$	56.9	$	345.0	$	318.6	$	54.2	$	372.8

Total net revenue	$	936.1	$	170.0	$	1,106.1	$	1,135.5	$	156.9	$	1,292.4	$	1,051.4	$	147.5	$	1,198.9

SICPA Holding SA Company (SICPA), a customer of the Company’s OSP segment, generated more than 10% of VIAVI net revenue from continuing operations during fiscal 2023, 2022 and 2021 as summarized below (in millions):


	Years Ended
	July 1, 2023		July 2, 2022		July 3, 2021
SICPA - OSP customer	$	157.7	$	178.4	$	193.9

Property, plant and equipment, net was identified based on the operations in the corresponding geographic areas (in millions):


	Years Ended
	July 1, 2023		July 2, 2022
United States	$	166.9	$	148.3
Other Americas	1.3		1.8
China	33.6		39.7
Other Asia-Pacific	4.0		4.5

United Kingdom	24.6		25.7
Other EMEA	12.6		8.9
Total property, plant and equipment, net	$	243.0	$	228.9