10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

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

For the quarterly period ended March 28, 2015

OR

o  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 0-22874

JDS UNIPHASE CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	94-2579683
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

430 North McCarthy Boulevard, Milpitas, California 95035

(Address of principal executive offices including Zip code)

(408) 546-5000

(Registrant’s telephone number, including area code)

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 o

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

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 definition 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 o Non-accelerated filer o Smaller reporting company o

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

As of April 25, 2015, the Registrant had 234,147,235 shares of common stock outstanding. The par value of each share of common stock is $0.001

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION		2
Item1.	Financial Statements (Unaudited)	2
	Consolidated Statements of Operations for the Three and Nine Months Ended March 28, 2015 and March 29, 2014	2
	Consolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months Ended March 28, 2015 and March 29, 2014	3
	Consolidated Balance Sheets as of March 28, 2015 and June 28, 2014	4
	Consolidated Statements of Cash Flows for the Nine Months Ended March 28, 2015 and March 29, 2014	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosure About Market Risks	38
Item 4.	Controls and Procedures	40
PART II - OTHER INFORMATION		40
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	42
SIGNATURE		43

1

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

JDS UNIPHASE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Net revenue	$	410.7		$	418.0		$	1,281.4		$	1,294.6
Cost of sales	215.5			222.3			665.3			687.5
Amortization of acquired technologies	10.9			11.0			32.0			32.3
Gross profit	184.3			184.7			584.1			574.8
Operating expenses:
Research and development	76.7			74.1			232.3			216.0
Selling, general and administrative	116.7			113.4			342.2			329.5
Amortization of other intangibles	4.9			5.2			15.0			10.7
Restructuring and related charges	8.3			3.6			20.9			3.8
Total operating expenses	206.6			196.3			610.4			560.0
(Loss) income from operations	(22.3		)	(11.6		)	(26.3		)	14.8
Interest and other income (expense), net	0.3			0.6			1.2			0.4
Interest expense	(8.6		)	(7.7		)	(25.4		)	(21.3		)
Loss before income taxes	(30.6		)	(18.7		)	(50.5		)	(6.1		)
Benefit from income taxes	(17.4		)	(17.2		)	(2.5		)	(13.7		)
Net (loss) income	$	(13.2	)	$	(1.5	)	$	(48.0	)	$	7.6
Net (loss) income per share from:
Basic	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03
Diluted	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03
Shares used in per share calculation:
Basic	233.2			234.0			232.1			234.1
Diluted	233.2			234.0			232.1			237.7

See accompanying notes to consolidated financial statements.

2

JDS UNIPHASE CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in millions)

(unaudited)

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Net (loss) income	$	(13.2	)	$	(1.5	)	$	(48.0	)	$	7.6
Other comprehensive income (loss):
Net change in available-for-sale investments, net of tax:
Unrealized holding gains arising during period	0.1			0.1			(0.4		)	0.3
Net change in cumulative translation adjustment, net of tax	(27.1		)	(1.3		)	(63.0		)	8.5
Net change in defined benefit obligation, net of tax:
Amortization of actuarial losses	0.1			—			0.4			0.1
Net change in Accumulated other comprehensive (loss) income	(26.9		)	(1.2		)	(63.0		)	8.9
Comprehensive (loss) income	$	(40.1	)	$	(2.7	)	$	(111.0	)	$	16.5

See accompanying notes to consolidated financial statements.

3

JDS UNIPHASE CORPORATION

CONSOLIDATED BALANCE SHEETS

(in millions, except share and par value data)

(unaudited)

	March 28, 2015			June 28, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	299.2		$	297.2
Short-term investments	489.7			552.2
Restricted cash	26.6			31.9
Accounts receivable, net (Note 6)	305.3			296.2
Inventories, net	155.8			153.3
Prepayments and other current assets	80.3			78.7
Total current assets	1,356.9			1,409.5
Property, plant and equipment, net	278.1			288.8
Goodwill	258.5			267.0
Intangibles, net	124.9			177.8
Deferred income taxes	149.9			183.3
Other non-current assets	23.4			25.5
Total assets	$	2,191.7		$	2,351.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	109.2		$	137.1
Accrued payroll and related expenses	59.9			79.9
Income taxes payable	12.7			21.4
Deferred revenue	76.9			77.5
Accrued expenses	35.5			34.8
Other current liabilities	41.8			57.7
Total current liabilities	336.0			408.4
Long-term debt	555.2			536.3
Other non-current liabilities	181.4			219.5
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred Stock, $0.001 par value; 1 million shares authorized; 1 share at March 28, 2015 and June 28, 2014, issued and outstanding	—			—
Common Stock, $0.001 par value; 1 billion shares authorized; 234 million shares at March 28, 2015 and 230 million shares at June 28, 2014, issued and outstanding	0.2			0.2
Additional paid-in capital	70,004.2			69,957.0
Accumulated deficit	(68,833.4		)	(68,780.6		)
Accumulated other comprehensive (loss) income	(51.9		)	11.1
Total stockholders’ equity	1,119.1			1,187.7
Total liabilities and stockholders’ equity	$	2,191.7		$	2,351.9

See accompanying notes to consolidated financial statements.

4

JDS UNIPHASE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

	Nine Months Ended
	March 28, 2015			March 29, 2014
OPERATING ACTIVITIES:
Net (loss) income	$	(48.0	)	$	7.6
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation expense	60.3			53.8
Amortization of acquired technologies and other intangibles	47.0			43.0
Stock-based compensation	50.3			48.3
Amortization of debt issuance costs and accretion of debt discount	20.4			16.3
Amortization of discount and premium on investments, net	2.7			3.1
Other	4.5			0.9
Changes in operating assets and liabilities, net of impact of acquisitions of businesses:
Accounts receivable	(14.3		)	1.0
Inventories	(6.7		)	4.8
Other current and non-currents assets	(5.2		)	(1.5		)
Accounts payable	(17.6		)	23.2
Income taxes payable	(15.6		)	(0.6		)
Deferred revenue, current and non-current	2.4			9.3
Deferred taxes, net	13.6			(26.9		)
Accrued payroll and related expenses	(38.7		)	(33.0		)
Accrued expenses and other current and non-current liabilities	(20.6		)	(22.9		)
Net cash provided by operating activities	34.5			126.4
INVESTING ACTIVITIES:
Purchases of available-for-sale investments	(460.0		)	(885.1		)
Maturities of available-for-sale investments	450.2			327.7
Sales of available-for-sale investments	69.5			186.8
Changes in restricted cash	5.0			(1.8		)
Acquisition of businesses, net of cash acquired	—			(219.3		)
Capital expenditures	(68.7		)	(68.1		)
Proceeds from the sale of assets	5.2			8.0
Net cash provided by (used in) investing activities	1.2			(651.8		)
FINANCING ACTIVITIES:
Proceeds from issuance of senior convertible debt	—			650.0
Payment of debt issuance costs	—			(13.5		)
Repurchase and retirement of common stock	(4.7		)	(100.0		)
Payment of financing obligations	(23.1		)	(1.3		)
Proceeds from exercise of employee stock options and employee stock purchase plan	14.0			22.0
Net cash (used in) provided by financing activities	(13.8		)	557.2
Effect of exchange rates on cash and cash equivalents	(19.9		)	1.7
Net increase in cash and cash equivalents	2.0			33.5
Cash and cash equivalents at beginning of period	297.2			281.0
Cash and cash equivalents at end of period	$	299.2		$	314.5

See accompanying notes to consolidated financial statements.

5

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

The financial information for JDS Uniphase Corporation (“JDSU,” also referred to as “the Company”) as of March 28, 2015 and for the three and nine months ended March 28, 2015 and March 29, 2014 is unaudited, and includes all normal and recurring adjustments Company management (“Management”) considers necessary for a fair statement of the financial information set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 28, 2014.

The balance sheet as of June 28, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and nine months ended March 28, 2015 and March 29, 2014 may not be indicative of results for the year ending June 27, 2015 or any future periods.

Fiscal Years

The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30th. The Company’s fiscal 2015 is a 52-week year ending on June 27, 2015. The Company’s fiscal 2014 was a 52-week year ending on June 28, 2014.

Change in Reportable Segments

During the first quarter of fiscal 2015 the Company reorganized its Network Service and Enablement (“NSE”) reportable segment into two separate reportable segments: Network Enablement (“NE”) and Service Enablement (“SE”). This change does not impact previously reported consolidated financial information. However, historical information related to the NSE reportable segment has been recast to reflect the new NE and SE reportable segment structure. Refer to “Note 16. Operating Segments” for more information.

JDSU Separation

On September 10, 2014, the Company announced plans to separate into two publicly traded companies: an optical components and commercial lasers company consisting of JDSU’s current Communications and Commercial Optical Products (“CCOP”) segment, and a network and service enablement company consisting of JDSU’s current Network Enablement (“NE”), Service Enablement (“SE”) and Optical Security and Performance Products (“OSP”) segments. On February 26, 2015, the Company announced that the optical components and commercial lasers company will be named Lumentum Holdings Inc. (“Lumentum”), and the network and service enablement company will be renamed Viavi Solutions Inc. (“Viavi”) at the time of the separation. The separation is expected to occur through a tax-free pro rata spinoff of Lumentum to JDSU shareholders, though the structure is subject to change based upon various business, tax and regulatory factors. The Company expects to complete the separation by the calendar third quarter of 2015.

Principles of Consolidation

The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenue and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and on various assumptions about the future believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information.

6

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2. Recently Issued Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance to provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. This guidance is effective for the Company in the first quarter of fiscal 2017 and may apply to the qualified and the non-qualified pension plans in certain countries. Prospective application is required, and early adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements.

In April 2015, the FASB issued new authoritative guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding liability, consistent with debt discounts or premiums. This guidance is effective for the Company in the first quarter of fiscal 2017, and will be applied retrospectively. The consolidated balance sheet of each individual period presented will be adjusted to reflect the period-specific effects of applying this new guidance.

In May 2014, the FASB issued new authoritative guidance related to revenue recognition. This guidance will replace current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This standard allows for either full retrospective adoption or modified retrospective adoption. The Company is evaluating the effect that this new guidance will have on its consolidated financial statements and the related disclosures.

On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. Presently, the FASB’s proposed deferral is not a final decision.

In April 2014, the FASB issued authoritative guidance, which specifies that only disposals, such as a disposal of a major line of business, representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This guidance is effective for the Company in the first quarter of fiscal 2016 and may apply to the treatment of the proposed tax-free spinoff of the CCOP business expected to be completed by the third calendar quarter of 2015 (the first quarter of fiscal 2016). Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Company is evaluating the impact of adopting this new accounting guidance on the consolidated financial statements.

7

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3. Earnings Per Share

The following table sets forth the computation of basic and diluted net (loss) income per share (in millions, except per share data):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Numerator:
Net (loss) income	$	(13.2	)	$	(1.5	)	$	(48.0	)	$	7.6
Denominator:
Weighted-average number of common shares outstanding:
Basic	233.2			234.0			232.1			234.1
Effect of dilutive securities from stock-based benefit plans	—			—			—			3.6
Diluted	233.2			234.0			232.1			237.7
Net (loss) income per share from:
Basic	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03
Diluted	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03

The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive (in millions):

	Three Months Ended		Nine Months Ended
	March 28, 2015 (1)(2)	March 29, 2014 (1)(2)	March 28, 2015 (1)(2)	March 29, 2014 (2)
Employee stock options and ESPP	3.7	4.6	3.8	1.1
RSUs	10.4	10.2	10.6	2.9
Total potentially dilutive securities	14.1	14.8	14.4	4.0

(1) As the Company incurred a net loss in the period, potential dilutive securities from employee stock options, employee stock purchase plan (“ESPP”) and Restricted Stock Units (“RSUs”) have been excluded from the diluted net loss per share computations as their effects were deemed anti-dilutive.

(2) The Company’s 0.625% Senior Convertible Notes due 2033 (the “2033 Notes”) are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $18.83 per share is payable in cash, shares of the Company’s common stock or a combination of both. Refer to “Note 10. Debts and Letters of Credit” for more details.

Note 4. Accumulated Other Comprehensive (Loss) Income

The Company’s accumulated other comprehensive (loss) income consists of the accumulated net unrealized gains and losses on available-for-sale investments, foreign currency translation adjustments and defined benefit obligations.

8

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

For the nine months ended March 28, 2015, the changes in accumulated other comprehensive (loss) income by component net of tax were as follows (in millions):

	Unrealized losses on available-for- sale investments			Foreign currency translation adjustments			Defined benefit obligation, net of tax (1)			Total
Beginning balance as of June 28, 2014	$	(2.8	)	$	26.2		$	(12.3	)	$	11.1
Other comprehensive (loss) income before reclassification adjustments	(0.4		)	(63.0		)	—			(63.4		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			0.4			0.4
Net current-period other comprehensive (loss) income	(0.4		)	(63.0		)	0.4			(63.0		)
Ending balance as of March 28, 2015	$	(3.2	)	$	(36.8	)	$	(11.9	)	$	(51.9	)

(1) Amount represents the amortization of actuarial losses included as a component of Selling, general and administrative expense (“SG&A”) in the Consolidated Statements of Operations for the nine months ended March 28, 2015. There was no tax impact. Refer to “Note 14. Employee Defined Benefit Plans” for more details on the computation of net periodic cost for pension plans.

Note 5. Mergers and Acquisitions

Holdback Payments Related to Fiscal 2014 Acquisitions

On December 10, 2013 (“Trendium Closing Date”), the Company acquired certain technology and other assets from Trendium Inc (“Trendium”), a privately-held U.S. company, for a purchase price of $26.1 million in cash, including a holdback payment of approximately $2.5 million which was reserved for potential breaches of representations and warranties. During the second quarter of fiscal 2015, the Company made the $2.5 million holdback payment following the one-year anniversary of the Trendium Closing Date. The payment is classified as a financing activity within the Consolidated Statements of Cash Flows.

On January 6, 2014 (“Network Instruments Closing Date”), the Company completed the acquisition of Network Instruments, LLC (“Network Instruments”) a privately-held U.S. company, for $208.5 million in cash, subject to final cash and working capital adjustments, including holdback payments of approximately $20.0 million which were reserved for potential breaches of representations and warranties. During the first quarter of fiscal 2015, the Company made the required six-month $9.8 million holdback payment, net of working capital adjustments. During the third quarter of fiscal 2015, the Company made the final holdback payment of $9.9 million, net of working capital adjustments, following the one-year anniversary of the Network Instruments Closing Date. The payments are classified as a financing activity within the Consolidated Statements of Cash Flows.

Note 6. Balance Sheet and Other Details

Accounts receivable reserves and allowances

The activities and balances for allowance for doubtful accounts and allowance for sales returns were as follows (in millions):

	June 28, 2014		Charged to Costs and Expenses		Adjustments (1)			March 28, 2015
Allowance for doubtful accounts	$	3.0	$	0.7	$	(0.7	)	$	3.0
Allowance for sales returns	0.5		1.2		(1.0		)	0.7
Total accounts receivable reserves	$	3.5	$	1.9	$	(1.7	)	$	3.7

(1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries.

9

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Inventories, net

Inventories, net are stated at the lower of cost or market, and include material, labor and manufacturing overhead costs. The components of Inventories, net were as follows (in millions):

	March 28, 2015		June 28, 2014
Finished goods	$	87.5	$	78.4
Work in process	31.5		40.1
Raw materials	36.8		34.8
Inventories, net	$	155.8	$	153.3

Prepayments and other current assets

The components of Prepayments and other current assets were as follows (in millions):

	March 28, 2015		June 28, 2014
Prepayments	$	34.2	$	33.3
Other current assets	46.1		45.4
Prepayments and other current assets	$	80.3	$	78.7

Other current liabilities

The components of Other current liabilities were as follows (in millions):

	March 28, 2015		June 28, 2014
Deferred compensation plan	$	3.4	$	3.9
Warranty	4.0		5.3
Restructuring	18.8		14.5
Holdback liabilities from acquisitions	2.3		22.5
Other	13.3		11.5
Other current liabilities	$	41.8	$	57.7

Other non-current liabilities

The components of Other non-current liabilities were as follows (in millions):

	March 28, 2015		June 28, 2014
Pension and post-employment benefits	$	84.8	$	107.3
Financing obligation	29.3		31.4
Long-term deferred revenue	27.4		22.7
Other	39.9		58.1
Other non-current liabilities	$	181.4	$	219.5

Note 7. Investments and Fair Value Measurements

The Company’s investments in marketable debt and equity securities were primarily classified as available-for-sale investments.

10

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of March 28, 2015, the Company’s available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. treasuries	$	34.9	$	—	$	—		$	34.9
U.S. agencies	96.3		—		—			96.3
Municipal bonds and sovereign debt instruments	11.6		—		—			11.6
Asset-backed securities	75.3		—		(0.2		)	75.1
Corporate securities	348.4		0.1		(0.1		)	348.4
Total debt available-for-sale securities	$	566.5	$	0.1	$	(0.3	)	$	566.3

The Company generally classifies debt securities as cash equivalents, short-term investments or other non-current assets based on the stated maturities; however, certain securities with stated maturities of longer than twelve months which are highly liquid and available to support current operations are also classified as short-term investments. As of March 28, 2015, of the total estimated fair value, $79.2 million was classified as cash equivalents, $486.3 million was classified as short-term investments and $0.8 million was classified as other non-current assets.

In addition to the amounts presented above, as of March 28, 2015, the Company’s short-term investments classified as trading securities related to the deferred compensation plan were $3.4 million, of which $0.4 million was invested in debt securities, $0.7 million was invested in money market instruments and funds and $2.3 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net.

During the three and nine months ended March 28, 2015 and March 29, 2014, the Company recorded no other-than-temporary impairment charges in each respective period.

As of March 28, 2015, contractual maturities of the Company’s debt securities classified as available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Estimated Fair Value
Amounts maturing in less than 1 year	$	413.8	$	413.7
Amounts maturing in 1 - 5 years	151.7		151.8
Amounts maturing in more than 5 years	1.0		0.8
Total debt available-for-sale securities	$	566.5	$	566.3

As of June 28, 2014, the Company’s available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. treasuries	$	36.8	$	—	$	—		$	36.8
U.S. agencies	70.0		—		—			70.0
Municipal bonds and sovereign debt instruments	16.8		—		—			16.8
Asset-backed securities	94.7		0.1		(0.2		)	94.6
Corporate securities	370.5		0.2		—			370.7
Total debt available-for-sale securities	$	588.8	$	0.3	$	(0.2	)	$	588.9

11

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of June 28, 2014, of the total estimated fair value, $39.8 million was classified as cash equivalents, $548.3 million was classified as short-term investments and $0.8 million was classified as other non-current assets.

In addition to the amounts presented above, as of June 28, 2014, the Company’s short-term investments classified as trading securities, related to the deferred compensation plan, were $3.9 million, of which $0.4 million was invested in debt securities, $0.7 million was invested in money market instruments and funds and $2.8 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net.

Fair Value Measurements

Assets measured at fair value as of March 28, 2015 are summarized below (in millions):

	Fair Value measurement as of
	March 28, 2015
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Debt available-for-sale securities:
U.S. treasuries	$	34.9	$	34.9	$	—
U.S. agencies	96.3		—		96.3
Municipal bonds and sovereign debt instruments	11.6		—		11.6
Asset-backed securities	75.1		—		75.1
Corporate securities	348.4		—		348.4
Total debt available-for-sale securities	566.3		34.9		531.4
Money market funds	163.0		163.0		—
Trading securities	3.4		3.4		—
Total assets (1)	$	732.7	$	201.3	$	531.4

(1) $212.2 million in cash and cash equivalents, $489.7 million in short-term investments, $26.2 million in restricted cash, and $4.6 million in other non-current assets on the Company’s Consolidated Balance Sheets.

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. There is an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions about the factors that market participants would use in valuing the asset or liability.

The Company’s cash and investment instruments are classified within Level 1 or Level 2 of the fair value hierarchy based on quoted prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. As of June 28, 2014 and during the three and nine months ended March 28, 2015, the Company held no Level 3 investments.

Foreign Currency Forward Contracts

The Company has foreign subsidiaries that operate and sell the Company’s products in various markets around the world. As a result, the Company is exposed to foreign exchange risks. The Company utilizes foreign exchange forward contracts and other instruments to manage foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily certain short-term intercompany receivables and payables, and to reduce the volatility of earnings and cash flows related to foreign-currency transactions.

The forward contracts, most with a term of less than 120 days, were transacted near quarter end; therefore, the fair value of the contracts as of both March 28, 2015 and June 28, 2014 is not significant. The change in the fair value of these foreign currency forward contracts is recorded as gain or loss in the Company’s Consolidated Statements of Operations as a component of Interest and other income (expense), net.

12

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 8. Goodwill

The following table presents the changes in goodwill allocated to the reportable segments (in millions):

	Network Enablement (1)			Service Enablement (1)			Communications and Commercial Optical Products (2)			Optical Security and Performance Products		Total
Balance as of June 28, 2014	$	158.0		$	94.8		$	5.9		$	8.3	$	267.0
Currency translation adjustments	(5.1		)	(3.0		)	(0.4		)	—		(8.5		)
Balance as of March 28, 2015	$	152.9		$	91.8		$	5.5		$	8.3	$	258.5

(1) In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, NE and SE. The goodwill of NSE was allocated between the two new segments based on their relative fair value as of June 29, 2014, the first day of fiscal 2015. The Company determined that based on its cash flow structure, organizational structure and the financial information provided to and reviewed by Management, NE and SE also represented new reporting units for fiscal 2015. Refer to “Note 16. Operating Segments” for more information.

(2) The goodwill balance as of March 28, 2015 for the CCOP segment relates to the acquisition of Time-Bandwidth and has been allocated to the Lasers reporting unit.

The Company reviews goodwill for impairment during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that an impairment loss may have occurred. In the fourth quarter of fiscal 2014, the Company completed the annual impairment test of goodwill with no goodwill impairments.

As the Company reorganized its NSE segment into two reportable segments during the first quarter of fiscal 2015, the goodwill allocated to the new NE and SE reporting units was reviewed under the two-step quantitative goodwill impairment test in accordance with the authoritative guidance. Under the first step of the authoritative guidance for impairment testing, the fair value of the new reporting units was determined based on a combination of the income approach, which estimates the fair value based on the future discounted cash flows, and the market approach, which estimates the fair value based on comparable market prices. Based on the first step of the analysis, the Company determined that the fair value of each reporting unit is significantly above its carrying amount. As such, the Company was not required to perform step two of the analysis. The Company recorded no impairment charge as a result of the interim period impairment test performed during the three months ended September 27, 2014. There were no other events or changes in circumstances which triggered impairment review for any of the reporting units during the three and nine months ended March 28, 2015.

Note 9. Acquired Developed Technology and Other Intangibles

The following tables present details of the Company’s acquired developed technology, customer relationships and other intangibles (in millions):

As of March 28, 2015	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	529.0	$	(456.3	)	$	72.7
Customer relationships	192.0		(144.6		)	47.4
Other	22.5		(21.2		)	1.3
Total intangibles subject to amortization	743.5		(622.1		)	121.4
In-process research and development intangibles	3.5		—			3.5
Total intangibles	$	747.0	$	(622.1	)	$	124.9

13

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of June 28, 2014	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	548.8	$	(443.1	)	$	105.7
Customer relationships	205.2		(142.3		)	62.9
Other	24.2		(22.1		)	2.1
Total intangibles subject to amortization	778.2		(607.5		)	170.7
In-process research and development intangibles	7.1		—			7.1
Total intangibles	$	785.3	$	(607.5	)	$	177.8

During the three months ended September 27, 2014, the Company completed its in-process research and development (“IPR&D) project related to the fiscal 2014 acquisition of Network Instruments. Accordingly, $1.7 million was transferred from indefinite life intangible assets to acquired developed technology intangible assets and began amortizing over its useful life of fifty-two months.

During the three months ended December 27, 2014, the Company recorded a $1.9 million IPR&D impairment charge for an ongoing project related to the fiscal 2014 acquisition of Trendium in accordance with the authoritative accounting guidance. The charge was recorded to Research and development (“R&D”) expense in the Consolidated Statement of Operations for the nine months ended March 28, 2015.

During the three and nine months ended March 28, 2015, the Company recorded $15.8 million and $47.0 million, respectively, of amortization expense relating to acquired developed technology, customer relationships and other intangibles.

During the three and nine months ended March 29, 2014, the Company recorded $16.2 million and $43.0 million, respectively, of amortization expense relating to acquired developed technology, customer relationships and other intangibles.

Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of March 28, 2015, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):

Fiscal Years
Remainder of 2015	$	12.0
2016	37.8
2017	34.7
2018	22.2
2019	10.9
Thereafter	3.8
Total amortization	$	121.4

The acquired developed technology, customer relationships and other intangibles balance are adjusted quarterly to record the effect of currency translation adjustments.

14

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 10. Debts and Letters of Credit

As of March 28, 2015 and June 28, 2014, the Company’s Long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component of the 0.625% Senior Convertible Notes as discussed below. The following table presents the details of the Company’s debt (in millions):

	March 28, 2015			June 28, 2014
Principal amount of 0.625% Senior Convertible Notes	$	650.0		$	650.0
Unamortized discount of liability component	(94.8		)	(113.7		)
Carrying amount of liability component	$	555.2		$	536.3
Carrying amount of equity component (1)	$	134.4		$	134.4

(1) Included in Additional paid-in-capital on the Consolidated Balance Sheets.

The Company was in compliance with all debt covenants as of March 28, 2015 and June 28, 2014, respectively.

0.625% Senior Convertible Notes

On August 21, 2013, the Company issued $650.0 million aggregate principal amount of 0.625% Senior Convertible Notes due 2033 (the “2033 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The proceeds from the 2033 Notes amounted to $636.3 million after issuance costs. The 2033 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 0.625% payable in cash semi-annually in arrears on February 15 and August 15 of each year. The 2033 Notes mature on August 15, 2033 unless earlier converted, redeemed or repurchased. The 2033 Notes and its terms are described in “Note 10. Debts and Letters of Credit” of the Company’s Annual Report on Form 10-K for the year ended June 28, 2014. During the nine months ended March 28, 2015, the price of the Company’s common stock did not exceed the initial conversion price of $18.83 per share and no conversion features were triggered.

In accordance with the authoritative accounting guidance, the Company separated the 2033 Notes into liability and equity components. The carrying value of the liability component at issuance was calculated as the present value of its cash flows using a discount rate of 5.4% based on the 5-year swap rate plus credit spread as of the issuance date. The credit spread for the Company is based on the historical average “yield to worst” rate for BB rated issuers. The difference between the 2033 Notes principal and the carrying value of the liability component, representing the value of conversion premium assigned to the equity component, was recorded as a debt discount on the issuance date and is being accreted using the effective interest rate of 5.4% over the period from the issuance date through August 15, 2018 as a non-cash charge to interest expense. The carrying value of the liability component was determined to be $515.6 million, and the equity component, or debt discount, of the 2033 Notes was determined to be $134.4 million. As of March 28, 2015, the expected remaining term of the 2033 Notes is 3.4 years.

In connection with the issuance of the 2033 Notes, the Company incurred $13.7 million of issuance costs, which were bifurcated into the debt issuance costs, attributable to the liability component of $10.9 million and the equity issuance costs, attributable to the equity component of $2.8 million based on their relative values. The debt issuance costs were capitalized and are being amortized to interest expense using the effective interest rate method from issuance date through August 15, 2018. The equity issuance costs were netted against the equity component in additional paid-in capital at the issuance date. As of March 28, 2015, the unamortized portion of the debt issuance costs related to the 2033 Notes was $7.7 million, which was included in Other non-current assets on the Consolidated Balance Sheets.

Based on quoted market prices as of March 28, 2015 and June 28, 2014, the fair market value of the 2033 Notes was approximately $669.2 million and $653.0 million, respectively. The 2033 Notes are classified within Level 2 as they are not actively traded in markets.

15

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the effective interest rate and the interest expense for the contractual interest and the accretion of debt discount (in millions, except for the effective interest rate):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Effective interest rate	5.4		%	5.4		%	5.4		%	5.4		%
Interest expense-contractual interest	$	1.0		$	1.0		$	3.0		$	2.4
Accretion of debt discount	6.3			6.0			18.8			14.6

Revolving Credit Facility

On August 21, 2013, in addition to the close of the 2033 Notes offering, the Company terminated its existing $250.0 million revolving credit facility, which had no amounts outstanding upon termination. The $1.3 million of unamortized debt issuance costs was fully amortized to interest expense upon termination in the first quarter of fiscal 2014.

Outstanding Letters of Credit

As of March 28, 2015, the Company had 11 standby letters of credit totaling $30.0 million.

Note 11. Restructuring and Related Charges

The Company continues to engage in targeted restructuring events intended to consolidate its operations, rationalize the manufacturing of its products and align its businesses in response to market conditions. As of March 28, 2015 and June 28, 2014, the Company’s total restructuring accrual was $27.3 million and $26.2 million, respectively. During the three and nine months ended March 28, 2015, the Company recorded restructuring related expenses of $8.3 million and $20.9 million, respectively. During the three and nine months ended March 29, 2014, the Company recorded restructuring related expenses of $3.6 million and $3.8 million, respectively. The Company’s restructuring charges can include severance and benefit costs to eliminate a specified number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods.

16

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Summary of Restructuring Plans

The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three and nine months ended March 28, 2015 were as follows (in millions):

	Balance as of June 28, 2014		Nine Months Ended March 28, 2015 Charges			Cash Settlements			Non-cash Settlements and Other Adjustments			Balance as of March 28, 2015		Three Months Ended March 28, 2015 Charges
Fiscal 2015 Plan
Separation Restructuring Plan (Workforce Reduction)	$	—	$	16.4		$	(4.0	)	$	(0.2	)	$	12.2	$	7.4
CCOP Robbinsville Closure Plan:
Workforce Reduction	—		1.5			(1.1		)	—			0.4		—
Lease Costs	—		0.1			—			—			0.1		0.1
Total CCOP Robbinsville Restructuring Plan	—		1.6			(1.1		)	—			0.5		0.1
Fiscal 2014 Plans
NE Realignment Plan (Workforce Reduction)	4.6		0.3			(4.0		)	(0.1		)	0.8		0.3
CCOP Serangoon Closure Plan
Workforce Reduction	1.7		0.1			(1.6		)	—			0.2		—
Lease Costs	—		0.3			(0.2		)	—			0.1		0.3
Total CCOP Serangoon Closure Plan	1.7		0.4			(1.8		)	—			0.3		0.3
Shared Services Restructuring Plan (Workforce Reduction)	1.8		0.1			(0.9		)	—			1.0		—
NE Product Strategy Restructuring Plan (Workforce Reduction)	4.4		0.4			(1.6		)	(0.7		)	2.5		—
NE Lease Restructuring Plan (first floor)	6.9		0.5			(1.8		)	—			5.6		0.1
Central Finance and IT Restructuring Plan (Workforce Reduction)	1.5		—			(0.1		)	(0.3		)	1.1		—
Fiscal 2013 Plans
NE Lease Restructuring Plan	2.1		(0.1		)	(0.4		)	—			1.6		—
Other plans	0.7		0.7			(1.0		)	—			0.4		0.1
Plans Prior to Fiscal 2013	2.5		0.6			(1.5		)	(0.3		)	1.3		—
Total	$	26.2	$	20.9		$	(18.2	)	$	(1.6	)	$	27.3	$	8.3
Ottawa Lease Exit Costs	$	3.1	$	(0.9	)	$	(0.8	)	$	(0.3	)	$	1.1	$	(0.9	)

As of March 28, 2015 and June 28, 2014, $8.5 million and $11.7 million, respectively, of our restructuring liability was long-term in nature and included as a component of Other non-current liabilities, with the remaining short-term portion included as a component of Other current liabilities on the Consolidated Balance Sheets.

The Company had also previously recorded lease exit charges, net of assumed sub-lease income in prior fiscal years related to its Ottawa facility that was included in SG&A expenses. The fair value of the remaining contractual obligations, net of sublease income, was $1.1 million and $3.1 million as of March 28, 2015 and June 28, 2014, respectively. The Company included the long-term portion of the contract obligations of $0.6 million and $2.0 million in Other non-current liabilities as of each period end, and the short-term portion in Other current liabilities in the Consolidated Balance Sheets. The payments related to these lease costs are expected to be paid by the end of the third quarter of fiscal 2018.

17

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Fiscal 2015 Plans

Separation Restructuring Plan

During the second quarter of fiscal 2015, Management approved a plan to eliminate certain positions in its shared services functions in connection with the Company’s plan to split into two separate public companies. Further, certain sales, R&D and operations positions will be eliminated in the CCOP, NE and SE segments to align to the Company’s product market strategy and lower manufacturing costs as the Company moves forward with its separation plan. In addition, during the third quarter of fiscal 2015, Management approved additional headcount adding to the plan approximately 80 employees primarily in the NE and SE segments. As a result, a restructuring charge of $7.4 million was recorded for severance and employee benefits during the third quarter of fiscal 2015. In total approximately 220 employees primarily in manufacturing, R&D, and SG&A functions located in North America, Latin America, Europe and Asia were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2016.

CCOP Robbinsville Closure Plan

During the first quarter of fiscal 2015, Management approved a CCOP plan to optimize operations and gain efficiencies by closing the Robbinsville, New Jersey site and consolidating roles and responsibilities across North America. As a result, approximately 30 employees primarily in manufacturing, R&D and SG&A functions located in North America were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2015.

Fiscal 2014 Plans

NE Realignment Plan

During the fourth quarter of fiscal 2014, Management approved a NE plan to realign its operations and strategy to allow for greater investment in high-growth areas. As a result, approximately 100 employees primarily in manufacturing, R&D and SG&A functions located in United States, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the second quarter of fiscal 2016.

CCOP Serangoon Closure Plan

During the fourth quarter of fiscal 2014, Management approved a CCOP plan to close the Serangoon office located in Singapore and move to a lower cost region in order to reduce manufacturing and R&D expenses. As a result, approximately 40 employees primarily in manufacturing and R&D functions were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2015.

Shared Services Restructuring Plan

During the fourth quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in its shared services functions in order to reduce cost, standardize global processes and establish a more efficient organization. As a result, approximately 40 employees primarily in the general and administrative functions located in the United States, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the second quarter of fiscal 2016.

NE Product Strategy Restructuring Plan

During the third quarter of fiscal 2014, Management approved a NE plan to realign its services, support and product resources in response to market conditions in the mobile assurance market and to increase focus on software products and next generation solutions through acquisitions and R&D. As a result, approximately 60 employees primarily in SG&A and manufacturing functions located in North America, Latin America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2020.

NE Lease Restructuring Plan (first floor)

During the second quarter of fiscal 2014, Management approved a NE plan to exit the remaining space in Germantown, Maryland. As of June 28, 2014, the Company exited the space in Germantown under the plan. The fair value of the remaining

18

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

contractual obligations, net of sublease income, as of March 28, 2015 was $5.6 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019.

Central Finance and Information Technology (“IT”) Restructuring Plan

During the second quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in the Finance and IT organization to align with the future state of the organizations under new executive management and move positions to lower-cost locations where appropriate. As a result, approximately 20 employees primarily in SG&A functions located in North America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2022.

Fiscal 2013 Plans

NE Lease Restructuring Plan

During the fourth quarter of fiscal 2013, Management approved a plan to consolidate space in Germantown, Maryland and Beijing, China, primarily used by the NE segment. As of June 29, 2013, the Company exited the second floor space in Germantown and Beijing under the plan. The fair value of the remaining contractual obligations, net of sublease income as of March 28, 2015 was $1.6 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019. Final payments related to the Beijing lease costs were paid during the first quarter of fiscal 2014.

Other Plans

Other plans account for an immaterial portion of the total restructuring accrual, with minimal or no revisions recorded.

Plans Prior to Fiscal 2013

The restructuring accrual for plans that commenced prior to fiscal year 2013 was $1.3 million, which consists of immaterial various restructuring plans that commenced prior to fiscal 2013.

Note 12. Income Taxes

The Company recorded an income tax benefit of $17.4 million and $2.5 million for the three and nine months ended March 28, 2015, respectively. The Company recorded an income tax benefit of $17.2 million and $13.7 million for the three and nine months ended March 29, 2014, respectively.

The income tax benefit recorded for the three and nine months ended March 28, 2015, primarily relates to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the year in those locations, offset by a $21.8 million tax benefit recognized upon the settlement of an audit in a non-U.S. jurisdiction.

 The income tax benefit recorded for the three and nine months ended March 29, 2014, primarily relates to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the year in those locations offset by the recognition of $21.7 million of uncertain tax benefits related to deferred tax assets due to the expiration of the statute of limitations in a non-US jurisdiction. A tax benefit of $5.1 million was recorded for the nine months ended March 29, 2014, related to the income tax intraperiod tax allocation rules in relation to other comprehensive income.

The income tax benefit and expense recorded differs from the expected tax expense or benefit that would be calculated by applying the federal statutory rate to the Company’s income or loss before income taxes primarily due to the increases in valuation allowance for deferred tax assets attributable to the Company’s domestic and foreign losses from continuing operations, due to the income tax benefit recorded in continuing operations under the income tax intraperiod tax allocation rules, and the recognition of the unrecognized tax benefits.

As of March 28, 2015 and June 28, 2014, the Company’s unrecognized tax benefits totaled $38.3 million and $60.3 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $1.6 million accrued for the payment of interest and penalties at March 28, 2015. The unrecognized tax benefits that may be recognized during the next twelve months are approximately $0.3 million.

19

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 13. Stock-Based Compensation

Overview

The impact on the Company’s results of operations of recording stock-based compensation by function for three and nine months ended March 28, 2015 and March 29, 2014 was as follows (in millions):

	Three Months Ended				Nine Months Ended
	March 28, 2015		March 29, 2014		March 28, 2015		March 29, 2014
Cost of sales	$	2.3	$	2.7	$	7.0	$	7.7
Research and development	3.9		4.1		11.5		11.7
Selling, general and administrative	13.4		10.1		31.8		28.9
	$	19.6	$	16.9	$	50.3	$	48.3

Approximately $1.9 million of stock-based compensation was capitalized in inventory at March 28, 2015.

Full Value Awards

“Full Value Awards” refer to RSUs and Performance Units that are granted with the exercise price equal to zero and are converted to shares immediately upon vesting. These Full Value Awards are performance-based, time-based or a combination of both and expected to vest over one year to four years. The fair value of the time-based Full Value Awards is based on the closing market price of the Company’s common stock on the date of award.

During the nine months ended March 28, 2015 and March 29, 2014, the Company granted 5.6 million and 5.5 million RSUs, of which 0.7 million and 0.6 million, respectively, are RSUs with market conditions (“MSUs”). These MSU shares represent the target amount of grants, and the actual number of shares awarded upon vesting of the MSUs may be higher or lower depending upon the achievement of the relevant market conditions. The majority of MSUs vest in equal annual installments over three years based on the attainment of certain total shareholder return performance measures and the employee’s continued service through the vest date. The aggregate grant-date fair value of MSUs granted through the third quarter of fiscal 2015 and fiscal 2014 was estimated to be $9.4 million and $9.2 million, respectively, and was calculated using a Monte Carlo simulation. The remaining 4.9 million granted during the nine months ended March 28, 2015 and March 29, 2014 each are mainly time-based RSUs. The majority of these time-based RSUs vest over three years, with 33% vesting after one year and the balance vesting quarterly over the remaining two years.

As of March 28, 2015, $83.9 million of unrecognized stock-based compensation cost related to Full Value Awards remains to be amortized. That cost is expected to be recognized over an estimated amortization period of 2.1 years.

Full Value Awards are converted into shares upon vesting. Shares equivalent in value to the minimum withholding taxes liability on the vested shares are withheld by the Company for the payment of such taxes. During the nine months ended March 28, 2015 and March 29, 2014, the Company paid $17.2 million and $18.3 million, respectively, and classified the payments as operating cash outflows in the Consolidated Statements of Cash Flows.

Impact on Stock-based Compensation Due to Amendments in the Change of Control Benefits Plan

During the nine months ended March 28, 2015, the Company amended its Change of Control Benefits Plan (the “Plan”) to add a spin-off of certain Company assets to the circumstances that could trigger benefits under the Plan, as well as other revisions. During the current fiscal period, the Chief Executive Officer of the Company and the Chairman of the Compensation Committee approved the separation of certain executives. Pursuant to the Plan, upon termination, all unvested equity awards that have been granted or issued to certain terminated executives become immediately vested and stock options shall become fully exercisable with an extended exercise period of two years from the termination date.

The amendments resulted in a modification of equity awards for certain executives and total incremental stock-based compensation of $6.3 million, which is being amortized over the period between the modification date and the termination dates of the executives. The Company recognized $3.2 million and $4.9 million of stock-based compensation resulting from the modification during the three months ended and the nine months ended March 28, 2015, respectively.

20

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Valuation Assumptions

The Company estimates the fair value of the MSUs on the date of grant using a Monte Carlo simulation with the following assumptions:

	Nine Months Ended
	March 28, 2015		March 29, 2014
Volatility of common stock	40.8	%	53.9	%
Average volatility of peer companies	53.4	%	58.6	%
Average correlation coefficient of peer companies	0.2156		0.2920
Risk-free interest rate	0.6	%	0.8	%

Note 14. Employee Defined Benefit Plans

The Company sponsors significant qualified and non-qualified pension plans for certain past and present employees primarily in the United Kingdom (“U.K.”), Germany and Switzerland. The Company also is responsible for the non-pension post-retirement benefit obligation assumed from a past acquisition. Most of the plans have been closed to new participants and no additional service costs are being accrued, except for certain plans in Germany and Switzerland assumed in connection with acquisitions during fiscal 2010 and fiscal 2014. Benefits are generally based upon years of service and compensation or stated amounts for each year of service.

As of March 28, 2015, the U.K. plan and Switzerland plan were partially funded while the other plans were unfunded. The Company’s policy for funded plans is to make contributions equal to or greater than the requirements prescribed by law or regulation. For unfunded plans, the Company pays the post-retirement benefits when due. During the nine months ended March 28, 2015, the Company contributed $1.1 million to the U.K. and $0.4 million to the Switzerland plans. The funded plan assets consist primarily of managed investments.

The following table presents the components of the net periodic cost for the pension plans (in millions):

	Three Months Ended						Nine Months Ended
Pension Benefits	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Service cost	$	0.1		$	0.2		$	0.4		$	0.4
Interest cost	0.9			1.2			2.9			3.6
Expected return on plan assets	(0.5		)	(0.4		)	(1.3		)	(1.2		)
Recognized net actuarial (gains)/losses	0.1			—			0.4			0.1
Net periodic benefit cost	$	0.6		$	1.0		$	2.4		$	2.9

Both the calculation of the projected benefit obligation and net periodic cost are based upon actuarial valuations. These valuations use participant-specific information such as salary, age, years of service, and assumptions about interest rates, pension increases and other factors. At a minimum, the Company evaluates these assumptions annually and makes changes as necessary.

The Company expects to incur cash outlays of approximately $4.4 million related to its defined benefit pension plans during fiscal 2015 to make current benefit payments and fund future obligations. As of March 28, 2015, approximately $4.7 million had been incurred. These payments have been estimated based on the same assumptions used to measure the Company’s projected benefit obligation at June 28, 2014.

Note 15. Commitments and Contingencies

Legal Proceedings

The Company is subject to a variety of claims and suits that arise from time to time in the ordinary course of our business. While Management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact on its financial position, results of operations or statement of cash flows, these matters are subject to inherent uncertainties and Management’s view of these matters may change in the future. If an unfavorable final outcome occurs, it

21

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

is possible there could be a material adverse impact on the Company’s financial position, results of operations or cash flows for the period in which the effect becomes reasonably estimable.

Guarantees

In accordance with authoritative guidance which requires that upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligation it assumes under that guarantee. In addition, disclosures about the guarantees that an entity has issued, including a tabular reconciliation of the changes of the entity’s product warranty liabilities, are required.

The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to: (i) divestiture agreements, under which the Company may provide customary indemnifications to purchasers of the Company’s businesses or assets; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises; and (iii) certain agreements with the Company’s officers, directors and employees, under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship.

The terms of such obligations vary. Generally, a maximum obligation is not explicitly stated. Because the obligated amounts of these types of agreements often are not explicitly stated, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, the Company has not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations on its balance sheet as of March 28, 2015 and June 28, 2014.

Product Warranties

In general, the Company offers a three-month to one-year warranty for most of its products. The Company provides reserves for the estimated costs of product warranties at the time revenue is recognized. The Company estimates the costs of its warranty obligations based on its historical experience of known product failure rates, use of materials to repair or replace defective products and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise with specific products. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.

The following table presents the changes in the Company’s warranty reserve (in millions):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Balance as of beginning of period	$	5.4		$	6.8		$	6.3		$	6.9
Provision for warranty	1.6			1.7			4.5			6.3
Utilization of reserve	(0.8		)	(1.2		)	(4.4		)	(4.3		)
Adjustments related to pre-existing warranties (including changes in estimates)	(0.8		)	(0.4		)	(1.0		)	(2.0		)
Balance as of end of period	$	5.4		$	6.9		$	5.4		$	6.9

Note 16. Operating Segments

The Company evaluates its reportable segments in accordance with the authoritative guidance on segment reporting. The Company’s Chief Executive Officer, Thomas H. Waechter, is the Company’s Chief Operating Decision Maker (“CODM”) pursuant to the guidance. The CODM allocates resources to the segments based on their business prospects, competitive factors, net revenue and operating results.

The Company is a leading provider of network service and enablement solutions and optical products for telecommunications (“Telecom”) service providers, cable operators, network equipment manufacturers (“NEMs”) and enterprises. JDSU’s diverse technology portfolio also fights counterfeiting and enables commercial lasers for a range of manufacturing applications.

In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, Network Enablement and Service Enablement. Splitting NSE into two reportable segments provides greater clarity and transparency regarding the markets, financial performance and business models of the NE and SE businesses. NE is a hardware-centric and more mature business consisting primarily of NSE’s traditional communications test instrument products. SE is a more software-centric

22

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

business consisting primarily of software solutions that are embedded within the network and enterprise performance management solutions. Historical segment numbers have been recast to conform to this new reporting structure in our financial statements.

The Company’s reportable segments are:

(i) Network Enablement:

NE provides testing solutions that access the network to perform build out and maintenance tasks. These solutions include instruments and software to design, build, turn-up, certify, troubleshoot, and optimize networks.

(ii) Service Enablement:

SE solutions are embedded systems that yield network, service and application performance data. These solutions—including microprobes and software—monitor, collect and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization.

(iii) Communications and Commercial Optical Products:

CCOP provides optical components, modules, subsystems, and solutions used by Telecom and data communications (“Datacom”) network equipment manufacturers (“NEMs”) and both traditional and cloud/data center service providers. These products enable the transmission and transport of video, audio and text data over high-capacity fiber optic cables. Transmission products primarily consist of optical transceivers, optical transponders, and their supporting components such as modulators and source lasers, including innovative products such as the Tunable Small Form-factor Pluggable Plus transceiver. Transport products primarily consist of modules or sub-systems containing optical amplifiers, reconfigurable optical add/drop multiplexers (“ROADMs”) or Wavelength Selective Switches, Optical Channel Monitors and their supporting components. Our products for 3D sensing applications, formerly referred to as our gesture recognition products, include a light source product. Customer solutions containing our 3D sensing products let a person control electronic or computer devices with natural body or hand gestures instead of using a remote, mouse or other device.

CCOP also provides a broad laser portfolio that serve customers in markets and applications such as manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining such as drilling in printed circuit boards, wafer singulation and solar cell scribing. These products include diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers. In addition, our photonic power products include fiber optic-based systems for delivering and measuring electrical power.

(iv) Optical Security and Performance Products:

OSP provides innovative optical security solutions, with a strategic focus on serving the anti-counterfeiting market through advanced security pigments, thread substrates and printed features for the currency, pharmaceutical and consumer electronic segments. OSP also provides thin-film coating solutions for 3D and gesture recognition applications.

The accounting policies of the reportable segments are the same as those described in the Company’s Annual Report on Form 10-K for the year ended June 28, 2014. The Company evaluates segment performance based on operating income (loss), excluding certain infrequent or unusual items.

The amounts shown as Corporate consist of certain unallocated corporate-level operating expenses. In addition, the Company does not allocate stock-based compensation, acquisition-related charges and amortization of intangibles, restructuring and related charges, non-operating income and expenses, or other non-recurring charges to its segments as highlighted in the table below.

23

JDS UNIPHASE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Information on reportable segments is as follows (in millions):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Net revenue:
Network Enablement	$	128.1		$	136.0		$	394.6		$	436.9
Service Enablement	39.0			36.3			132.9			102.3
Communications and Commercial Optical Products	195.2			194.6			611.6			597.2
Optical Security and Performance Products	48.4			51.1			142.3			158.2
Net revenue	$	410.7		$	418.0		$	1,281.4		$	1,294.6
Operating income (loss):
Network Enablement	$	25.8		$	18.7		$	68.4		$	72.1
Service Enablement	(9.5		)	(8.8		)	(11.2		)	(20.9		)
Communications and Commercial Optical Products	17.4			22.4			69.1			73.5
Optical Security and Performance Products	19.1			18.2			53.8			57.8
Corporate	(21.5		)	(23.3		)	(66.2		)	(70.7		)
Total segment operating income	31.3			27.2			113.9			111.8
Unallocated amounts:
Stock-based compensation	(19.6		)	(16.9		)	(50.3		)	(48.3		)
Amortization of intangibles	(15.8		)	(16.2		)	(47.0		)	(43.0		)
Loss on disposal of long-lived assets	(0.5		)	(1.0		)	(0.5		)	(0.8		)
Restructuring and related charges (1)	(8.3		)	(3.6		)	(20.9		)	(3.8		)
Other charges related to non-recurring activities (1)	(9.4		)	(1.1		)	(21.5		)	(1.1		)
Interest and other income (expense), net	0.3			0.6			1.2			0.4
Interest expense	(8.6		)	(7.7		)	(25.4		)	(21.3		)
(Loss) income from operations before income taxes	$	(30.6	)	$	(18.7	)	$	(50.5	)	$	(6.1	)

(1) During the three and nine months ended March 28, 2015, the Company incurred incremental expenses of $16.2 million and $32.9 million, respectively, to effect the Company’s plan to separate into two separate public companies. These incremental expenses included (a) restructuring charges, (b) accounting, legal, and other professional fees, (c) and cost of additional personnel and related costs dedicated to affect the separation and/or to enable Lumentum to operate successfully immediately following the split.

24

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

Forward-Looking Statements

Statements contained in this Quarterly Report on Form 10-Q which are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement may contain words such as “anticipates,” “believes,” “can,” “can impact,” “could,” “continue,” “estimates,” “expects,” “intends,” “may,” “ongoing,” “plans,” “potential,” “projects,” “should,” “will,” “will continue to be,” “would,” or the negatives thereof or other comparable terminology regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements include statements such as:

·our expectations regarding demand for our products, including continued trends in end-user behavior and technological advancements that may drive such demand and the role we will play in those advancements;

·our plans for growth and innovation opportunities;

·our plans to separate into two publicly traded companies, the composition of and markets for those companies, the anticipated costs, benefits and other impacts of the separation and the plan to achieve the separation through a tax-free spinoff;

·financial projections and expectations, including profitability of certain business units, plans to reduce costs and improve efficiencies, the effects of seasonality on certain business units, continued reliance on key customers for a significant portion of our revenue, future sources of revenue, competition and pricing pressures, the future impact of certain accounting pronouncements and our estimation of the potential impact and materiality of litigation;

·our plans for continued development, use and protection of our intellectual property;

·our strategies for achieving our current business objectives, including related risks and uncertainties;

·our plans or expectations relating to investments, acquisitions, partnerships and other strategic opportunities;

·our strategies for reducing our dependence on sole suppliers or otherwise mitigating the risk of supply chain interruptions;

·our research and development plans and the expected impact of such plans on our financial performance; and

·our expectations related to our products, including costs associated with the development of new products, product yields, quality and other issues.

Management cautions that forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from those projected in such forward-looking statements. These forward-looking statements are only predictions and are subject to risks and uncertainties including those set forth in Part II, Item 1A “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q and in other documents we file with the Securities and Exchange Commission. Moreover, neither we assume nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Forward-looking statements are made only as of the date of this Report and subsequent facts or circumstances may contradict, obviate, undermine or otherwise fail to support or substantiate such statements. We are under no duty to update any of the forward-looking statements after the date of this Form 10-Q to conform such statements to actual results or to changes in our expectations.

In addition, Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 28, 2014.

OUR INDUSTRIES AND QUARTERLY DEVELOPMENTS

JDSU is a leading provider of network and service enablement solutions and optical products for telecommunications service providers, wireless operators, cable operators, network equipment manufacturers (“NEMs”) and enterprises. JDSU is also an established leader in providing anti-counterfeiting technologies for currencies and other high-value documents and products. In addition, we leverage our core networking and optical technology expertise to deliver high-powered commercial lasers for manufacturing applications and expand into emerging markets, including 3D sensing solutions for consumer electronics.

25

On September 10, 2014, the Company announced plans to separate into two publicly traded companies: an optical components and commercial lasers company consisting of JDSU’s current Communications and Commercial Optical Products (“CCOP”) segment, and a network and service enablement company consisting of JDSU’s current Network Enablement (“NE”), Service Enablement (“SE”) and Optical Security and Performance Products (“OSP”) segments. On February 26, 2015, the Company announced that the optical components and commercial lasers company will be named Lumentum Holdings Inc. (“Lumentum”), and the network and service enablement company will be renamed Viavi Solutions Inc. (“Viavi”) at the time of the separation. The separation is expected to occur through a tax-free pro rata spinoff of Lumentum to JDSU shareholders, though the structure is subject to change based upon various business, tax and regulatory factors. The Company expects to complete the separation by the calendar third quarter of 2015.

In addition to the announcement to separate into two public companies, during the first quarter of fiscal 2015 the Company reorganized its Network Service and Enablement (“NSE”) reportable segment into two separate reportable segments: Network Enablement and Service Enablement. Splitting NSE into two reportable segments provides greater clarity and transparency regarding the markets, financial performance and business models of the NE and SE businesses. NE is a hardware-centric and more mature business consisting primarily of NSE’s traditional communications test instrument products. SE is a more software-centric business consisting primarily of (i) software solutions that are embedded within the network, and (ii) enterprise performance management solutions. Historical segment numbers have been recast to conform to this new reporting structure.

To serve its markets, JDSU operates the following business segments:

·    Network Enablement

·    Service Enablement

·    Communications and Commercial Optical Products

·    Optical Security and Performance Products

Network Enablement

NE provides an integrated portfolio of network enablement instruments and software that access the network to help build out, activate, and certify, troubleshooting and maintenance tasks. These solutions support more profitable, higher-performing networks and help speed time-to-revenue.

JDSU’s network enablement products and services are largely organized between seven product groups that target specific network testing solutions: Cloud and Data Center, Ethernet, Fiber, Media Access and Content (“MAC”), Mobility, Services, and Waveready. NE solutions address lab and production environments, field deployment and service assurance for wireless and fixed communications networks, including storage networks. NE’s solutions include one of the largest test instrument portfolios in the industry, with hundreds of thousands of units in active use by major NEMs, operators and services providers worldwide. NE is leveraging this installed base and knowledge of network management methods and procedures.

NE customers include wireless and fixed services providers, NEMs, government organizations and large corporate customers. These include major telecom, mobility and cable operators such as AT&T, Bell Canada, Bharti Airtel Limited, British Telecom, China Mobile, China Telecom, Chunghwa Telecom, Comcast, CSL, Deutsche Telecom, France Telecom, Reliance Communications, Softbank, Telefónica, Telmex, TimeWarner Cable, Verizon and Vodafone. NE customers also include many of the NEMs served by our CCOP segment, including Alcatel-Lucent International, Ciena Corporation, Cisco Systems, Inc., Fujitsu Network Communications, Inc., and Huawei Technologies Co. Ltd. NE customers also include chip and infrastructure vendors, storage-device manufacturers, storage-network and switch vendors, and deployed private enterprise customers. Storage-segment customers include Brocade, Cisco Systems and EMC.

Service Enablement

SE solutions are embedded systems that provide network, service and application data. These solutions-including microprobes and software-monitor, collect and analyze network data to reveal the actual customer experience and identify opportunities for new revenue streams and network optimization.

JDSU’s service enablement products and services are largely organized between five product groups that target specific network intelligence, visibility and control solutions: Enterprise, Location Intelligence, Mobile Assurance and Analytics (“MAA”),

26

Packet Portal, and RAN Solutions. SE solutions address lab and production environments, field deployment and service assurance for wireless and fixed communications networks. These solutions let carriers remotely monitor performance and quality of network, service and applications performance throughout the entire network. Remote monitoring decreases operating expenses, while early detection increases uptime, preserves revenue, and lets operators better monetize their networks.

SE customers include the same wireless and fixed services providers, NEMs, government organizations, large corporate customers, and storage-segment customers that are served by our NE segment.

Communications and Commercial Optical Products

CCOP is a leading provider of optical communications and commercial laser products and technologies and commercial laser components. JDSU optical communications offerings address the following markets: telecommunications (“Telecom”), data communications (“Datacom”) and consumer and industrial (“Consumer and Industrial”).

CCOP’s optical communications products include a wide range of components, modules and subsystems to support and maintain customers in CCOP’s two primary markets: Telecom and Datacom. The Telecom market includes carrier networks for access (local), metro (intracity), long-haul (city-to-city and worldwide) and submarine (undersea) networks. The Datacom market addresses enterprise, cloud and data center applications, including storage-access networks (“SANs”), local-area networks (“LANs”) and Ethernet wide-area networks (“WANs”). These products enable the transmission and transport of video, audio and text data over high-capacity fiber-optic cables. We maintain leading positions in the fastest-growing optical communications markets, including reconfigurable optical add/drop multiplexers (“ROADMs”), tunable 10-gigabit small form-factor pluggable transceivers and tunable small formfactor pluggables. Our growing portfolio of pluggable transceivers supports LAN/SAN needs and the cloud for customers building proprietary data center networks.

In the Consumer and Industrial markets CCOP’s products include our light source product which is integrated into 3D sensing platforms being used in applications for gaming, computing and home entertainment. These systems simplify the way people interact with technology by enabling the use of natural body gestures, like the wave of a hand, to control a product or application. Emerging applications for this technology include incabin tracking in cars, self-navigating robotics and drones in industrial applications and 3D capture of objects coupled with 3D printing.

Our OpComms customers include Alcatel-Lucent International, Ciena Corporation, Cisco Systems, Inc., Coriant GmbH, Fujitsu Network Communications, Inc., Google Inc., Huawei Technologies Co. Ltd., Microsoft Corporation and Nokia Networks.

CCOP also provides a broad laser portfolio that serve customers in markets and applications such as manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining such as drilling in printed circuit boards, wafer singulation and solar cell scribing. Our Lasers products are used in a variety of OEM applications.

OEM applications use our products including diode-pumped solid-state, fiber, diode, direct-diode and gas lasers such as argon-ion and helium-neon lasers. Diode-pumped solid-state and fiber lasers provide excellent beam quality, low noise and exceptional reliability and are used in biotechnology, graphics and imaging, remote sensing, materials processing and precision machining applications. Diode and direct-diode lasers address a wide variety of applications, including laser pumping, thermal exposure, illumination, ophthalmology, image recording, printing, plastic welding and selective soldering. Gas lasers such as argon-ion and helium-neon lasers provide a stable, low-cost and reliable solution over a wide range of operating conditions, making them well suited for complex, high-resolution OEM applications such as flow cytometry, DNA sequencing, graphics and imaging and semiconductor inspection.

Our Lasers customers include Amada Co., Ltd., ASML Holding N.V., Beckman Coulter, Inc., Becton, Dickinson and Company, DISCO Corporation, Electro Scientific Industries, Inc., EO Technics Co., Ltd. and KLA-Tencor Corporation.

Optical Security and Performance Products

OSP designs, manufactures, and sells products targeting anti-counterfeiting, consumer and industrial, government, healthcare and other markets.

OSP’s security offerings for the currency market include Optically Variable Pigment (“OVP®”), Optically Variable Magnetic Pigment (“OVMP®”) and banknote thread substrates. OVP® enables a color-shifting effect used by banknote issuers and security

27

printers worldwide for anti-counterfeiting applications on currency and other high-value documents and products. OVP® protects the currencies of more than 100 countries today. OSP also develops and delivers overt and covert anti-counterfeiting products that utilize its proprietary printing platform and are targeted primarily at the pharmaceutical and consumer-electronics markets.

Leveraging its expertise in spectral management and its unique high-precision coating capabilities, OSP provides a range of products and technologies for the consumer-electronics market, including, for example, optical filters for 3D sensing devices designed for gaming and other platforms.

OSP value-added solutions meet the stringent requirements of commercial and government customers in aerospace and defense. JDSU products are used in a variety of aerospace and defense applications, including optics for guidance systems, laser eye protection and night vision systems. These products, including coatings and optical filters, are optimized for each specific application.

OSP serves customers such as 3M, Barco, Kingston, Lockheed Martin, Microsoft, Northrup Grumman, Pan Pacific, Seiko Epson and SICPA.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Refer to “Note 2. Recently Issued Accounting Pronouncements” regarding the effect of certain recent accounting pronouncements on our consolidated financial statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

For a description of the critical accounting policies that affect our more significant judgments and estimates used in the preparation of our consolidated financial statements, refer to Item 7 on Management Discussion and Analysis in our Fiscal 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”).

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RESULTS OF OPERATIONS

The results of operations for the current period are not necessarily indicative of results to be expected for future periods. The following table summarizes selected Consolidated Statements of Operations items (in millions, except for percentages):

	Three Months Ended											Nine Months Ended
	March 28, 2015			March 29, 2014			Change			Percent Change		March 28, 2015			March 29, 2014			Change			Percent Change
Segment net revenue:
NE	$	128.1		$	136.0		$	(7.9	)	(5.8	)%	$	394.6		$	436.9		$	(42.3	)	(9.7	)%
SE	39.0			36.3			2.7			7.4		132.9			102.3			30.6			29.9
CCOP	195.2			194.6			0.6			0.3		611.6			597.2			14.4			2.4
OSP	48.4			51.1			(2.7		)	(5.3	)	142.3			158.2			(15.9		)	(10.1	)
Net revenue	$	410.7		$	418.0		$	(7.3	)	(1.7	)%	$	1,281.4		$	1,294.6		$	(13.2	)	(1.0	)%
Gross profit	$	184.3		$	184.7		$	(0.4	)	(0.2	)%	$	584.1		$	574.8		$	9.3		1.6	%
Gross margin	44.9		%	44.2		%						45.6		%	44.4		%
Amortization of acquired technologies	10.9			11.0			(0.1		)	(0.9	)%	32.0			32.3			(0.3		)	(0.9	)%
Percentage of net revenue	2.7		%	2.6		%						2.5		%	2.5		%
Research and development	76.7			74.1			2.6			3.5	%	232.3			216.0			16.3			7.5	%
Percentage of net revenue	18.7		%	17.7		%						18.1		%	16.7		%
Selling, general and administrative	116.7			113.4			3.3			2.9	%	342.2			329.5			12.7			3.9	%
Percentage of net revenue	28.4		%	27.1		%						26.7		%	25.5		%
Amortization of other intangibles	4.9			5.2			(0.3		)	(5.8	)%	15.0			10.7			4.3			40.2	%
Percentage of net revenue	1.2		%	1.2		%						1.2		%	0.8		%
Restructuring and related charges	8.3			3.6			4.7			130.6	%	20.9			3.8			17.1			450.0	%
Percentage of net revenue	2.0		%	0.9		%						1.6		%	0.3		%

Net Revenue

Three months ended March 28, 2015 and March 29, 2014

Net revenue decreased by $7.3 million, or 1.7%, during the three months ended March 28, 2015 compared to the same period a year ago. This decrease was primarily due to a decrease in our NE and OSP segments partially offset by an increase in our SE and CCOP segments as discussed below.

NE net revenue decreased by $7.9 million, or 5.8%, during the three months ended March 28, 2015 compared to the same period a year ago. This decrease was driven by $16.4 million of net revenue decreases primarily from our Ethernet, Mobility and Waveready product lines. These decreases were primarily due to lower demand for our (i) Ethernet product line from key customers, (ii) Mobility product line as we transition to next generation products and (iii) Waveready product line driven by a reduction in carrier spending in the current period. This was partially offset by $8.6 million of net revenue increases primarily due to higher demand from a key customer of our MAC product line.

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SE net revenue increased by $2.7 million, or 7.4%, during the three months ended March 28, 2015 compared to the same period a year ago. This increase was primarily driven by $4.3 million of net revenue increases primarily from our Enterprise product line as a result of higher maintenance revenues and our Location Intelligence product line driven by increased orders and recognition of previously deferred software and services revenue. This was partially offset by $1.6 million of net revenue decreases primarily from our MAA product line resulting from the timing and magnitude of projects from solution-based customers.

CCOP net revenue increased by $0.6 million, or 0.3%, during the three months ended March 28, 2015 compared to the same period a year ago. This increase was driven by $7.9 million of net revenue increases primarily from products addressing our Datacom market due to higher demand from a key customer and the ramp of new products in the current period. These increases were partially offset by $7.3 million of net revenue decreases from products addressing the Consumer and Industrial market, primarily due to lower demand from a key customer for our 3D sensing products in the current period.

OSP net revenue decreased by $2.7 million, or 5.3%, during the three months ended March 28, 2015 compared to the same period a year ago. This decrease was driven by $11.0 million of net revenue decreases primarily from the planned exit of legacy products which was completed at the end of fiscal 2014 and lower demand from a key customer for 3D sensing products in our Consumer and Industrial product line. These decreases were partially offset by $8.3 million of net revenue increases primarily from our Anti-Counterfeiting product line driven by cyclical demand for our currency products.

Nine Months Ended March 28, 2015 and March 29, 2014

Net revenue decreased by $13.2 million, or 1.0%, during the nine months ended March 28, 2015 compared to the same period a year ago. This decrease was primarily due to a decrease in our NE and OSP segments, partially offset by an increase in our SE and CCOP segments.

NE net revenue decreased by $42.3 million, or 9.7%, during the nine months ended March 28, 2015 compared to the same period a year ago. This decrease was primarily due to a reduction in carrier spending in the current period resulting in lower demand for our Ethernet, MAC, and Fiber product lines, partially offset by an increase in demand from a key customer for our Cable products in the current period.

SE net revenue increased by $30.6 million, or 29.9%, during the nine months ended March 28, 2015 compared to the same period a year ago. This increase was driven by $33.2 million of net revenue increases primarily due to incremental net revenue from our Enterprise product line which was acquired in the third quarter of fiscal 2014, coupled with revenue growth in our Location Intelligence product line driven by increased orders. This was offset by $2.6 million of net revenue decreases primarily from our MAA product line resulting from the timing and magnitude of projects.

CCOP net revenue increased by $14.4 million, or 2.4%, during the nine months ended March 28, 2015 compared to the same period a year ago. This increase was driven by $51.8 million of net revenue increases primarily from our products addressing our Lasers and Datacom markets. These increases were primarily due to higher demand from a key customer for our second generation fiber laser product in the Laser market and the ramp of new products for the Datacom market. These increases were partially offset by $37.4 million of net revenue decreases primarily from products addressing our Consumer and Industrial market due to lower demand for 3D sensing products in the current period compared to the prior period when our customer launched its next generation gaming console.

OSP net revenue decreased by $15.9 million, or 10.1%, during the nine months ended March 28, 2015 compared to the same period a year ago. This decrease was driven by $34.3 million of net revenue decreases primarily from the planned exit of legacy products which was completed at the end of fiscal 2014 and lower demand from a key customer for 3D sensing products in our Consumer and Industrial product line. This was partially offset by $18.4 million of net revenue increases primarily from our Anti-Counterfeiting product line driven by cyclical demand for our currency products.

Going forward, we expect to continue to encounter a number of industry and market risks and uncertainties that may limit our visibility, and consequently, our ability to predict future revenue, profitability and general financial performance, and that could create quarter over quarter variability in our financial measures. For example, as a portion of our international operations are denominated in currencies other than the U.S. dollar, changes in foreign exchange rates may significantly affect revenue and expenses. Recently, the significant strengthening of the U.S. dollar relative to certain foreign currencies, namely the Euro and Japanese Yen, negatively impacted reported revenue and reduced our reported expenses. Additionally, continued economic issues in Europe have led to uncertain demand in our NE, SE and optical communications product portfolios. We cannot predict when or to

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what extent these uncertainties will be resolved. Our revenues, profitability, and general financial performance may also be affected by: (a) strong pricing pressures, particularly within our optical communications markets, due to, among other things, a highly concentrated customer base, increasing competition, particularly from Asia-based competitors, and a general commoditization trend for certain products; (b) high product mix variability, particularly in our CCOP, NE and SE markets, which affects revenue and gross margin; (c) fluctuations in customer buying patterns, which cause demand, revenue and profitability volatility; (d) the current trend of communication industry consolidation, which is expected to continue, that directly affects our CCOP, NE and SE customer bases and adds additional risk and uncertainty to our financial and business projections; and (e) the proposed spinoff may result in disruptions to, and negatively impact our relationships with, our customers and other business partners. In addition, we anticipate continued lower demand and revenue from our 3D sensing products in our CCOP and OSP segments through fiscal 2015 compared to fiscal 2014.

We operate in three geographic regions: Americas, Europe Middle East and Africa (“EMEA”) and Asia-Pacific. The following table presents net revenue by geographic region (in millions):

	Three Months Ended								Nine Months Ended
	March 28, 2015				March 29, 2014				March 28, 2015				March 29, 2014
Net revenue:
Americas	$	203.1	49.4	%	$	196.5	47.0	%	$	586.5	45.8	%	$	609.5	47.1	%
EMEA	88.7		21.6	%	102.3		24.5	%	291.4		22.7	%	311.1		24.0	%
Asia-Pacific	118.9		29.0	%	119.2		28.5	%	403.5		31.5	%	374.0		28.9	%
Total net revenue	$	410.7	100.0	%	$	418.0	100.0	%	$	1,281.4	100.0	%	$	1,294.6	100.0	%

Net revenue is assigned to geographic regions based on customer shipment locations. Net revenue from customers in the Americas during the three months ended March 28, 2015 and March 29, 2014 included net revenue from the United States of $155.6 million and $152.0 million, respectively. Net revenue from customers in the Americas during the nine months ended March 28, 2015 and March 29, 2014 included net revenue from the United States of $439.5 million and $454.5 million, respectively.

Net revenue from customers outside the Americas during the three months ended March 28, 2015 and March 29, 2014 represented 50.6% and 53.0% of net revenue, respectively. Net revenue from customers outside the Americas during the nine months ended March 28, 2015 and March 29, 2014, represented 54.2% and 52.9% of net revenue, respectively. We expect revenue from customers outside of North America to continue to be an important part of our overall net revenue and an increasing focus for net revenue growth opportunities.

Gross Margin

Gross margin increased by 0.7 percentage points during the three months ended March 28, 2015 from 44.2% in the same period a year ago to 44.9% in the current period. This increase was primarily due to an improvement in gross margin within our SE, OSP and NE segments driven by an increase in sales of higher margin products, including higher software and maintenance revenue in our SE segment and higher anti-counterfeiting revenue coupled with the exit from lower margin legacy products in the fourth quarter of fiscal 2014 in our OSP segment. This was partially offset by an unfavorable product mix in our CCOP segment.

Gross margin increased 1.2 percentage points during the nine months ended March 28, 2015 from 44.4% in the same period a year ago to 45.6% in the current period. The increase was primarily due to an improvement in gross margin within our SE, NE and OSP segments driven by (i) the addition of the higher-margin Enterprise product line acquired in the third quarter of fiscal 2014 in our SE segment, (ii) favorable product mix in our NE segment and (iii) higher anti-counterfeiting revenue coupled with the exit from lower margin legacy products in the fourth quarter of fiscal 2014 in our OSP segment.

As discussed in more detail under “Net Revenue” above, we sell products in certain markets that are consolidating, undergoing product, architectural and business model transitions, have high customer concentrations, are highly competitive (increasingly due to Asia-Pacific-based competition), are price sensitive and/or are affected by customer seasonal and mix variant buying patterns. We expect these factors to continue to result in variability of our gross margin.

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Research and Development (“R&D”)

R&D expense increased by $2.6 million, or 3.5%, during the three months ended March 28, 2015 compared to the same period a year ago. This increase was primarily driven by a $1.6 million reduction in R&D offsets from CCOP customer-funded development projects and government grants in the current period and a $1.0 million increase in labor and benefits expense primarily due to higher variable-compensation related to the company’s performance. This was partially offset by a decrease in R&D materials expense of $0.9 million. As a percentage of net revenue R&D increased 1.0 percentage point during the three months ended March 28, 2015 compared to the same period a year ago as we continue to invest in our portfolio to develop new technologies, products and services that offer our customers increased value and strengthen our position in our core markets.

R&D expense increased by $16.3 million, or 7.5%, during the nine months ended March 28, 2015 compared to the same period a year ago. This increase was primarily driven by a $12.1 million increase in employee compensation expense primarily due to our ongoing investment in R&D and our strategic acquisitions in the second and third quarters of fiscal 2014. Also contributing to the increase was a $1.9 million IPR&D impairment charge related to a fiscal 2014 acquisition. This was partially offset by a $0.9 million decrease in R&D facilities cost. As a percentage of net revenue R&D increased 1.4 percentage points during the three months ended March 28, 2015 compared to the same period a year ago as we continue to invest in our portfolio to develop new technologies, products and services that offer our customers increased value and strengthen our position in our core markets.

We believe that continuing our investments in R&D is critical to attaining our strategic objectives. We plan to continue to invest in R&D and new products that will further differentiate us in the marketplace and expect our investment in dollar terms to increase in future quarters.

Selling, General and Administrative (“SG&A”)

SG&A expense increased by $3.3 million, or 2.9%, during the three months ended March 28, 2015 compared to the same period a year ago. This increase was primarily driven by an $8.3 million increase in non-recurring expenses related to the separation of the CCOP segment. This was partially offset by a $4.3 million reduction in various other charges as a result of our continuing cost reduction efforts. As a percentage of net revenue SG&A increased 1.2 percentage points during the three months ended March 28, 2015 compared to the same period a year ago.

SG&A expense increased by $12.7 million, or 3.9%, during the nine months ended March 28, 2015 compared to the same period a year ago. This increase was primarily driven by a $16.0 million increase in non-recurring expenses related to the separation of the CCOP segment, coupled with a $4.5 million increase in employee-related compensation primarily due to incremental stock-based compensation charges in connection with the modification of certain equity awards in fiscal 2015 as discussed in Note 13. Stock-Based Compensation. This was partially offset by a $8.0 million reduction in various other charges as a result of our continuing cost reduction efforts. As a percentage of net revenue SG&A increased 1.3 percentage points during the nine months ended March 28, 2015 compared to the same period a year ago.

We intend to continue to focus on reducing our SG&A expense as a percentage of net revenue. However, we have in the recent past experienced, and may continue to experience in the future, certain non-core expenses, such as mergers and acquisitions-related expenses, expenses related to our proposed separation of the business into two public companies and litigation expenses, which could increase our SG&A expenses and potentially impact our profitability expectations in any particular quarter.

Restructuring and Related Charges

We continue to eliminate costs through targeted restructuring efforts intended to consolidate our operations, rationalize the manufacturing of our products and align our businesses in response to market conditions. We estimate annualized cost eliminations of approximately $53.0 million, excluding any one-time charges as a result of the restructuring activities initiated in the past year. We have reinvested and plan to reinvest a portion of our cost savings into R&D and new products that we believe will further differentiate us in the marketplace. Refer to “Note 11. Restructuring and Related Charges” for more detail. Additionally, we expect to incur significant restructuring and related charges during the remainder of fiscal 2015 related to our proposed separation of the Company into two public companies and our continuing efforts to reduce ongoing costs of our businesses.

During the three and nine months ended March 28, 2015, we incurred restructuring and related charges of $8.3 million and $20.9 million, respectively. During the three and nine months ended March 29, 2014, we incurred restructuring and related charges of $3.6 million and $3.8 million, respectively.

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During the third quarter of fiscal 2015, we incurred restructuring and related charges of $8.3 million. The charges are a combination of new and previously announced restructuring plans and are primarily the result of the following:

·During the second quarter of fiscal 2015, Management approved a plan to eliminate certain positions in its shared services functions in connection with the Company’s plan to split into two separate public companies. Further, certain sales, R&D, and operations positions will be eliminated in the CCOP, NE and SE segments to align to the Company’s product market strategy and lower manufacturing costs as the Company moves forward with its separation plan. In addition, during the third quarter of fiscal 2015, Management approved additional headcount adding to the plan approximately 80 employees primarily in the NE and SE segment. As a result, a restructuring charge of $7.4 million was recorded for severance and employee benefits during the third quarter of fiscal 2015. In total approximately 220 employees primarily in manufacturing, R&D, and SG&A functions located in North America, Latin America, Europe and Asia were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2016.

During the third quarter of fiscal 2014, we incurred restructuring and related charges of $3.6 million. These charges are primarily the result of the following:

·During the third quarter of fiscal 2014, Management approved a plan in the NSE segment to realign its services, support and product resources in response to market conditions in the mobile assurance market and to increase focus on software products and next generation solutions through acquisitions and R&D. As a result, a restructuring charge of $3.3 million was recorded for severance and employee benefits for approximately 60 employees primarily in SG&A and manufacturing functions located in North America, Latin America, Asia and Europe. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2020.

During the nine months ended March 28, 2015, we recorded $20.9 million in restructuring and related charges. The charges are a combination of new and previously announced restructuring plans and are primarily the result of the following:

·We recorded a restructuring charge of $16.4 million primarily for severance and benefits for the Separation Restructuring Plan announced in the second quarter of fiscal 2015.

·We recorded a restructuring charge of $1.6 million primarily for severance and benefits for the CCOP Robbinsville Closure Plan announced in the first quarter of fiscal 2015.

During the nine months ended March 29, 2014, we recorded $3.8 million in restructuring and related charges. The charges are primarily the result of the following:

·$4.8 million for severance and benefits for the Central Finance and IT Plan announced in the second quarter of fiscal 2014 and for the NSE Product Strategy Restructuring Plan announced in the third quarter of fiscal 2014. These charges were slightly offset by a benefit of $0.7 million relating to a reduction in the number of employees impacted by the OSP Operational Realignment Plan approved during the fourth quarter of fiscal 2013.

·$0.8 million benefit to adjust the lease liability accrual for the Germantown location related to the NSE Lease Restructuring Plan approved in the fourth quarter of fiscal 2013.

Our restructuring and other lease exit cost obligations are net of sublease income or lease settlement estimates of approximately $5.3 million. Our ability to generate sublease income, as well as our ability to terminate lease obligations and recognize the anticipated related savings, is highly dependent upon the economic conditions, particularly commercial real estate market conditions in certain geographies, at the time we negotiate the lease termination and sublease arrangements with third parties as well as the performances by such third parties of their respective obligations. While the amount we have accrued represents the best estimate of the remaining obligations we expect to incur in connection with these plans, estimates are subject to change. Routine adjustments are required and may be required in the future as conditions and facts change through the implementation period. If adverse macroeconomic conditions continue, particularly as they pertain to the commercial real estate market, or if, for any reason, tenants under subleases fail to perform their obligations, we may be required to reduce estimated future sublease income and adjust the estimated amounts of future settlement agreements, and accordingly, increase estimated costs to exit certain facilities. Amounts related to the lease expense, net of anticipated sublease proceeds, will be paid over the respective lease terms through fiscal 2019.

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Interest and Other Income (Expense), Net

Interest and other income (expense), net was $0.3 million during the three months ended March 28, 2015 compared to $0.6 million the same period a year ago. This $0.3 million change was driven by an increase in foreign currency exchange loss of ($1.2) million as the balance sheet hedging program provided a less favorable offset to the remeasurement of underlying foreign exchange exposures during the current period, partially offset by a $0.6 million increase in other income during the current period.

Interest and other income (expense), net was $1.2 million during the nine months ended March 28, 2015 as compared to $0.4 million during the same period a year ago. This $0.8 million change was primarily driven by an increase in other income of $1.3 million driven by higher sub-lease rental income in the current period, coupled with an increase in interest income of $0.9 million primarily due to balances in higher-yielding investment vehicles in our investment portfolios. This was partially offset by an increase in foreign currency exchange loss of ($1.3) million as the balance sheet hedging program provided a less favorable offset to the remeasurement of underlying foreign exchange exposures during the current period.

Interest Expense

Interest expense increased by $0.9 million, or 11.7%, during the three months ended March 28, 2015 compared to the same period a year ago. The increase was comprised of various components including a $0.3 million increase in accretion of unamortized debt discount related to the 0.625% Convertible Notes due 2033 (the “2033 Notes”) which were issued on August 21, 2013.

Interest expense increased by $4.1 million, or 19.2%, during the nine months ended March 28, 2015 compared to the same period a year ago. The increase was primarily due to an increase of $4.2 million and $0.6 million in accretion of unamortized debt discount and contractual interest expense related to our 2033 Notes during the current period. This was partially offset by a $1.3 million write-off of unamortized issuance cost related to the termination of our $250.0 million revolving credit facility in the first quarter of fiscal 2014.

Provision for Income Tax

We recorded an income tax benefit of $17.4 million and $2.5 million for the three and nine months ended March 28, 2015, respectively. We recorded an income tax benefit of $17.2 million and $13.7 million for the three and nine months ended March 29, 2014, respectively.

The income tax benefit recorded for the three and nine months ended March 28, 2015, primarily relates to income tax in certain foreign and state jurisdictions based on our forecasted pre-tax income for the year in those locations, offset by a $21.8 million tax benefit recognized upon the settlement of an audit in a non-U.S. jurisdiction.

The income tax benefit recorded for the three and nine months ended March 29, 2014, primarily relates to income tax in certain foreign and state jurisdictions based our forecasted pre-tax income for the year in those locations offset by the recognition of $21.7 million of uncertain tax benefits related to deferred tax assets due to the expiration of the statute of limitations in a non-US jurisdiction.  A tax benefit of $5.1 million was recorded for the nine months ended March 29, 2014, related to the income tax intraperiod tax allocation rules in relation to other comprehensive income.

The income tax benefit and expense recorded differs from the expected tax expense or benefit that would be calculated by applying the federal statutory rate to our income or loss before income taxes primarily due to the increases in valuation allowance for deferred tax assets attributable to our domestic and foreign losses from continuing operations, the income tax benefit recorded in continuing operations under the income tax intraperiod tax allocation rules, and the recognition of the unrecognized tax benefits.

As of March 28, 2015 and June 28, 2014, our unrecognized tax benefits totaled $38.3 million and $60.3 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. We had $1.6 million accrued for the payment of interest and penalties at March 28, 2015. The unrecognized tax benefits that may be recognized during the next twelve months are approximately $0.3 million.

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Operating Segment Information (in millions):

	Three Months Ended											Nine Months Ended
	March 28, 2015			March 29, 2014			Change			Percentage Change		March 28, 2015			March 29, 2014			Change			Percentage Change
NE
Net revenue	$	128.1		$	136.0		$	(7.9	)	(5.8	)%	$	394.6		$	436.9		$	(42.3	)	(9.7	)%
Operating income	25.8			18.7			7.1			38.0	%	68.4			72.1			(3.7		)	(5.1	)%
Operating margin	20.1		%	13.8		%						17.3		%	16.5		%	0.8		%
SE
Net revenue	$	39.0		$	36.3		$	2.7		7.4	%	$	132.9		$	102.3		$	30.6		29.9	%
Operating loss	(9.5		)	(8.8		)	(0.7		)	8.0	%	(11.2		)	(20.9		)	9.7			(46.4	)%
Operating margin	(24.4		)%	(24.2		)%						(8.4		)%	(20.4		)%
CCOP
Net revenue	$	195.2		$	194.6		$	0.6		0.3	%	$	611.6		$	597.2		$	14.4		2.4	%
Operating income	17.4			22.4			(5.0		)	(22.3	)%	69.1			73.5			(4.4		)	(6.0	)%
Operating margin	8.9		%	11.5		%						11.3		%	12.3		%
OSP
Net revenue	$	48.4		$	51.1		$	(2.7	)	(5.3	)%	$	142.3		$	158.2		$	(15.9	)	(10.1	)%
Operating income	19.1			18.2			0.9			4.9	%	53.8			57.8			(4.0		)	(6.9	)%
Operating margin	39.5		%	35.6		%						37.8		%	36.5		%

NE

NE operating margin increased 6.3 percentage points during the three months ended March 28, 2015 from 13.8% in the same period a year ago to 20.1% in the current period. The increase in operating margin was primarily due to a decrease in operating expenses as a percentage of net revenue coupled with an improvement in gross margin driven by a more favorable product mix. Operating expenses decreased primarily due to lower sales commissions coupled with a reduction in headcount and other cost savings from our targeted restructuring activities in fiscal 2015.

NE operating margin increased 0.8 percentage points during nine months ended March 28, 2015 from 16.5% in the same period a year ago to 17.3% in the current period. The increase in operating margin was primarily due to a decrease in operating expenses as a percentage of net revenue coupled with an improvement in gross margin driven by a more favorable product mix. Operating expenses decreased primarily due to lower sales commissions coupled with a reduction in headcount and other cost savings from our targeted restructuring activities in fiscal 2015.

SE

SE operating margin decreased 0.2 percentage points during the three months ended March 28, 2015 from (24.2)% in the same period a year ago to (24.4)% in the current period. The decrease in operating margin was primarily due to an increase in operating expenses as a percentage of revenue as a result of ongoing investments in the development of our product portfolio. This was partially offset by an improvement in gross margin primarily due to an increase in net revenue and a more favorable product mix, including higher software and maintenance revenue in the current period.

SE operating margin increased 12.0 percentage points during nine months ended March 28, 2015 from (20.4)% in the same period a year ago to (8.4)% in the current period. The increase in operating margin was primarily driven by an increase in net revenue from the addition of the higher-margin Enterprise product line acquired in the third quarter of fiscal 2014.

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CCOP

CCOP operating margin decreased 2.6 percentage points during the three months ended March 28, 2015 from 11.5% in the same period a year ago to 8.9% in the current period. The decrease in operating margin was primarily due to a decline in gross margin driven by an unfavorable product mix.

CCOP operating margin decreased 1.0 percentage points during the nine months ended March 28, 2015 from 12.3% in the same period a year ago to 11.3% in the current period. The decrease in operating margin was primarily due to an increase in R&D as a percentage of net revenue driven by higher headcount associated with our ongoing R&D investments and our strategic acquisition in the third quarter of fiscal 2014.

OSP

OSP operating margin increased 3.9% during the three months ended March 28, 2015 from 35.6% in the same period a year ago to 39.5% in the current period. The increase in operating margin was primarily due to an improvement in gross margin driven by an increase in revenue from our higher margin anti-counterfeiting product line, coupled with the exit from lower margin legacy products in the fourth quarter of fiscal 2014. This was partially offset by an increase in operating expenses as a percentage of revenue primarily due to spending associated with our ongoing R&D investments and the development of our product portfolio.

OSP operating margin increased 1.3% during the nine months ended March 28, 2015 from 36.5% in the same period a year ago to 37.8% in the current period. The increase in operating margin was primarily due to an improvement in gross margin driven by an increase in revenue from our higher margin anti-counterfeiting product line, coupled with the exit from lower margin legacy products in the fourth quarter of fiscal 2014. This was partially offset by an increase in operating expenses as a percentage of net revenue primarily due to spending associated with our ongoing R&D investments and the development of our product portfolio.

Liquidity and Capital Resources

Our cash investments are made in accordance with an investment policy approved by the Audit Committee of our Board of Directors. In general, our investment policy requires that securities purchased be rated A-1/P-1, A/A2 or better. In November, 2012, the policy was amended to allow an allocation to securities rated A-2/P-2, BBB/Baa2 or better, with such allocation not to exceed 10% of any investment portfolio. Securities that are downgraded subsequent to purchase are evaluated and may be sold or held at management’s discretion. No security may have an effective maturity that exceeds 37 months, and the average duration of our holdings may not exceed 18 months. At any time, no more than 5.0% or $5.0 million, whichever is greater, of each of our investment portfolios may be concentrated in a single issuer other than the U.S. or sovereign governments or agencies. Our investments in debt securities and marketable equity securities are primarily classified as available-for-sale investments or trading assets and are recorded at fair value. The cost of securities sold is based on the specific identification method. Unrealized gains and losses on available-for-sale investments are recorded as other comprehensive (loss) income and are reported as a separate component of stockholders’ equity. We did not hold any investments in auction rate securities, mortgage backed securities, collateralized debt obligations, or variable rate demand notes at March 28, 2015 and virtually all debt securities held were of investment grade (at least BBB-/Baa3). As of March 28, 2015, U.S. entities owned approximately 80.3% of our cash and cash equivalents, short-term investments and restricted cash.

As of March 28, 2015, the majority of our cash investments have maturities of 90 days or less and are of high credit quality. Although we intend to hold these investments to maturity, in the event that we are required to sell any of these securities under adverse market conditions, losses could be recognized on such sales. During the nine months ended March 28, 2015, we have not realized material investment losses but can provide no assurance that the value or the liquidity of our investments will not be impacted by adverse conditions in the financial markets. In addition, we maintain cash balances in operating accounts that are with third party financial institutions. These balances in the U.S. may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. While we monitor the cash balances in our operating accounts and adjust the cash balances as appropriate, these cash balances could be impacted if the underlying financial institutions fail.

Nine Months Ended March 28, 2015

As of March 28, 2015 our combined balance of cash and cash equivalents, short-term investments and restricted cash decreased by $65.8 million to $815.5 million from $881.3 million as of June 28, 2014.

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During the nine months ended March 28, 2015, cash provided by operating activities was $34.5 million, primarily resulting from $129.0 million of net income adjusted for both non-cash charges (e.g., depreciation, amortization and stock-based compensation) and changes in our deferred tax and other tax liabilities balances which are non-cash in nature, partially offset by changes in operating assets and liabilities that used $94.5 million. Changes in our operating assets and liabilities related primarily to a decrease in accrued payroll and related expenses of $38.7 million due to timing of salary and bonus payments, a decrease in accrued expenses and other current and non-current liabilities of $20.6 million, a decrease in accounts payable of $17.6 million due to higher payment activity, and an increase in accounts receivable of $14.3 million primarily due to collections timing.

During the nine months ended March 28, 2015, cash provided by investing activities was $1.2 million, primarily resulting from $524.9 million of proceeds from the sales and maturities of available-for-sale investments and other assets and a $5.0 million decrease in restricted cash, partially offset by $460.0 million of purchases of available-for-sale investments and $68.7 million of cash used for capital expenditures.

During the nine months ended March 28, 2015, cash used in financing activities was $13.8 million, primarily resulting from holdback payments of $22.2 million related to our acquisitions in fiscal 2014 and $4.7 million of cash used to repurchase our common stock, partially offset by $14.0 million of proceeds from the exercise of stock options and the issuance of common stock under our employee stock purchase plan.

Nine Months Ended March 29, 2014

As of March 29, 2014 our combined balance of cash and cash equivalents, short-term investments and restricted cash increased by $410.3 million to $926.2 million from 515.9 million as of June 29, 2013.

During the nine months ended March 29, 2014, cash provided by operating activities was $126.4 million, resulting from $146.1 million of net income adjusted for both non-cash charges (e.g., depreciation, amortization and stock-based compensation) and changes in our deferred tax balances which are non-cash in nature, partially offset by a changes in operating assets and liabilities that used $19.7 million. Changes in operating assets and liabilities related primarily to a decrease in accrued payroll and related expenses of $33.0 million due to timing of salary and variable incentive payments, a decrease in accrued expenses and other current and non-current liabilities of $22.9 million, partially offset by an increase in accounts payable of $23.2 million due to lower payment activity in the current quarter.

During the nine months ended March 29, 2014, cash used in investing activities was $651.8 million, primarily due to $885.1 million of purchases of available-for-sale securities largely driven by the investment of proceeds from the 2033 Notes, $219.3 million of cash used for the acquisitions of Trendium, Network Instruments and Time Bandwidth Products, and $68.1 million of purchases of property, plant and equipment. These were partially offset by proceeds from maturities of available-for-sale investments of $327.7 million and sales of available-for-sale investments of $186.8 million in the current period.

During the nine months ended March 29, 2014, cash provided by financing activities was $557.2 million, primarily related to the $650.0 million proceeds from the 2033 Notes partially offset by the repurchase of 7.4 million shares of our outstanding common stock for $100.0 million in the current period.

We believe that our existing cash balances and investments will be sufficient to meet our liquidity and capital spending requirements over the next twelve months. However, there are a number of factors that could positively or negatively impact our liquidity position, including:

·global economic conditions which affect demand for our products and services and impact the financial stability of our suppliers and customers;

·changes in accounts receivable, inventory or other operating assets and liabilities which affect our working capital;

·increase in capital expenditure to support the revenue growth opportunity of our business;

·the tendency of customers to delay payments or to negotiate favorable payment term to manage their own liquidity positions;

·timing of payments to our suppliers;

·factoring or sale of accounts receivable;

37

·volatility in fixed income and credit market which impact the liquidity and valuation of our investment portfolios;

·volatility in foreign exchange market which impacts our financial results;

·possible investments or acquisitions of complementary businesses, products or technologies;

·issuance or repurchase of debt or equity securities;

·potential funding of pension liabilities either voluntarily or as required by law or regulation, and

·compliance with covenants and other terms and conditions related to our financing arrangements.

·higher than expected costs associated with separating the company into two public companies (a network and service enablement company and an optical components and commercial lasers company)

Contractual Obligations

During the third quarter of fiscal 2015, there were no material changes to the contractual obligations previously disclosed in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended June 28, 2014, except for those occurring in the ordinary course of our business.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, other than the guarantees discussed in “Note 15. Commitments and Contingencies.”

Employee Stock-based Benefit Plans

Our stock-based benefit plans are a broad-based, long-term retention program that is intended to attract and retain employees and align stockholder and employee interests. Refer to “Note 13. Stock-Based Compensation” for more information.

Pension and Other Post-retirement Benefits

We sponsor significant pension plans for certain past and present employees primarily in the U.K., Germany and Switzerland.  We are also responsible for the non-pension post-retirement benefit obligation of a previously acquired subsidiary. Most of these plans have been closed to new participants and no additional service costs are being accrued, except for the plans assumed in connection with acquisitions during fiscal 2010 and fiscal 2014. The U.K. plan and Switzerland plan are partially funded and the German plans, which were established as “pay-as-you-go” plans, are unfunded. As of March 28, 2015, our pension plans were under funded by $86.5 million since the projected benefit obligation exceeded the fair value of its plan assets. Similarly, we had a liability of $1.1 million related to our non-pension post-retirement benefit plan. Pension plan assets are managed by external third parties and we monitor the performance of our investment managers. As of March 28, 2015, the fair value of plan assets had increased approximately 13.2% since June 28, 2014, our most recent fiscal year end.

A key actuarial assumption is the discount rate. Changes in the discount rate impact the interest cost component of the net periodic benefit cost calculation and, due to the fact that the projected benefit obligation (“PBO”) is calculated on a net present value basis, changes in the discount rate will also impact the current PBO. Decreases in the discount rate will generally increase pre-tax cost, recognized expense and the PBO. Increases in the discount rate tend to have the opposite effect. We estimate a 50 basis point decrease or increase in the discount rate would cause a corresponding increase or decrease, respectively, in the PBO of approximately $9.7 million based upon June 28, 2014 data.

In estimating the expected return on plan assets, we consider historical returns on plan assets, adjusted for forward-looking considerations, inflation assumptions and the impact of active management of the plan’s invested assets. While it is not possible to accurately predict future rate movements, we believe our current assumptions are appropriate. Refer to “Note 14. Employee Defined Benefit Plans” for more details.

Item 3. Quantitative and Qualitative Disclosure About Market Risks

We are exposed to various market risks, including changes in foreign currency exchange rates and interest rates. Derivatives and other financial instruments are used to mitigate exposures subject to market risk. We do not enter into derivatives or other financial instruments for trading or speculative purposes.

38

Foreign Exchange Risk

We utilize foreign exchange forward contracts and other instruments, including option contracts, to hedge foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily certain short-term intercompany receivables and payables. Our foreign exchange forward contracts and other instruments are accounted for as derivatives whereby the fair value of the contracts are reflected as Prepayments and other current assets or Other current liabilities in Consolidated Balance Sheets and the associated gains and losses are reflected in Interest and other income (expense), net in the Consolidated Statements of Operations. Our hedging programs reduce, but do not eliminate, the impact of currency exchange rate movements. The gains and losses on those derivatives are expected to be offset by re-measurement gains and losses on the foreign currency denominated monetary assets and liabilities.

Forward contracts, most with a term of less than 120 days, were transacted near quarter-end and therefore, the fair value of the contracts is approximately zero at quarter-end. The change in the fair value of these foreign currency forward contracts is recorded as income or loss in the Company’s Consolidated Statements of Operations as a component of Interest and other income (expense), net.

The following table provides information about our foreign currency forward contracts outstanding as of March 28, 2015.

	Contract Amount		Contract Amount
(in millions)	(Local Currency)		(USD)
Canadian Dollar (contracts to buy CAD / sell USD)	CAD	47.6	$	38.0
Chinese Renmimbi (contracts to buy CNY / sell USD)	CNY	206.2	32.8
British Pound (contracts to buy GBP / sell USD)	GBP	13.3	19.8
Euro (contracts to buy EUR / sell USD)	EUR	93.5	102.7
Singapore Dollar (contracts to sell SGD / buy USD)	SGD	48.6	35.4
Mexican Peso (contracts to buy MXN / sell USD)	MXN	113.1	7.5
Australian Dollar (contracts to sell AUD / buy USD)	AUD	7.3	5.7
Brazilian Real (contracts to sell BRL / buy USD)	BRL	61.5	18.9
Japanese Yen (contracts to buy JPY / sell USD)	JPY	691.1	5.8
Indian Rupee (contracts to sell INR / buy USD)	INR	294.9	4.6
South Korean Won (contracts to buy KRW / sell USD)	KRW	3,735.0	3.4
Malaysian Ringgit (contracts to buy MYR / sell USD)	MYR	3.2	0.9
Swiss Franc (contracts to buy CHF / sell USD)	CHF	2.7	2.8
Turkish Lira (contracts to sell TRY / buy USD)	TRY	2.3	0.9
Swedish Krona (contracts to buy SEK / sell USD)	SEK	20.2	2.4
Total USD notional amount of outstanding foreign exchange contracts			$	281.6

The counterparties to these hedging transactions are creditworthy multinational financial institutions. We actively manage these counterparty exposures by seeking to diversify our hedge positions across multiple counterparties to avoid concentration of risk and by monitoring such exposure on an on-going basis. Nevertheless, under current market conditions, failure of one or more of these financial institutions could result in losses.

Notwithstanding our efforts to mitigate some foreign exchange risks, we do not hedge all of our foreign currency exposures, and there can be no assurances that our mitigating activities related to the exposures that we do hedge will adequately protect us against the risks associated with foreign currency fluctuations.

Investments

We maintain an investment portfolio in a variety of financial instruments, including, but not limited to, U.S. government and agency bonds, corporate obligations, money market funds, asset-backed securities, and other investment-grade securities. The majority of these investments pay a fixed rate of interest. The securities in the investment portfolio are subject to market price risk due to changes in interest rates, perceived issuer creditworthiness, marketability, and other factors. These investments are generally classified as available-for-sale and, consequently, are recorded on our Consolidated Balance Sheets at fair value with unrealized

39

gains or losses reported as a separate component of Stockholders’ equity. We did not hold any investments in auction rate securities, mortgage backed securities, collateralized debt obligations, or variable rate demand notes at March 28, 2015.

Investments in both fixed-rate and floating-rate interest earning instruments carry a degree of interest rate risk. The fair market values of our fixed-rate securities decline if interest rates rise, while floating-rate securities may produce less income than expected if interest rates fall. Due in part to these factors, our future investment income may be less than expectations because of changes in interest rates or we may suffer losses in principal if forced to sell securities that have experienced a decline in market value because of changes in interest rates.

Debt

The fair market value of the 2033 Notes is subject to interest rate and market price risk due to the convertible feature of the notes and other factors. Generally, the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise. The fair market value of the notes may also increase as the market price of JDSU stock rises and decreases as the market price of the stock falls. Interest rate and JDSU stock price changes affect the fair market value of the notes but do not impact our financial position, cash flows or results of operations. Based on quoted market prices, as of March 28, 2015, the fair market value of the 2033 Notes was $669.2 million. Refer to “Note10. Debt and Letters of Credit” for more details.

Item 4. Controls and Procedures

Disclosure Controls and Procedures: The Company’s management, with the participation of the Company’s principal executive officer and principal financial officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective.

Internal Control Over Financial Reporting: There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

The Company is subject to a variety of claims and suits that arise from time to time in the ordinary course of our business. While Management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact on its financial position, results of operations or statement of cash flows, these matters are subject to inherent uncertainties and Management’s view of these matters may change in the future. If an unfavorable final outcome occurs, it is possible there could be a material adverse impact on the Company’s financial position, results of operations or cash flows for the period in which the effect becomes reasonably estimable.

Item 1A. Risk Factors

Other than the risks described below and elsewhere in this Quarterly Report on Form 10-Q related to the decision to separate our business into two separate public companies, there have been no material changes from the risk factors previously disclosed in Part I, Item 1A of our Annual Report for the fiscal year ended June 28, 2014.

We may not be able to complete the proposed spinoff of our CCOP business within the expected time frame or at all.  The proposed transaction will require significant time and attention from our management, will result in increased operating expenses and, if completed, may not produce the anticipated benefits.

On September 10, 2014, we announced plans to separate into two publicly traded companies: an optical components and commercial lasers company consisting of our current CCOP segment and a network and service enablement company consisting of our current NE, SE and OSP segments. Completion of the separation will be subject to certain conditions, such as approval by our Board of Directors, receipt of tax opinions, effectiveness of a registration statement and foreign regulatory requirements. Our ability to complete the separation could be affected by unanticipated developments or changes in market conditions. For these and other reasons, we may not be able to complete the separation within the expected time frame, or at all.

40

Even if the separation is completed, we may not realize the anticipated benefits. In the near-term, the separation will result in additional operating expenses, including one-time transaction expense associated with the spinoff, and will require significant time and attention of our management, which could distract management from the operation of our business. In addition, we could face difficulties retaining key customers or employees as a result of the separation. If any of these risks materialize, they could adversely affect our operating results.

The proposed spinoff of our CCOP business could result in substantial tax liability to us and our shareholders.

One of the conditions for completing the spinoff will be our receipt of a tax opinion from our advisors substantially to the effect that, for U.S. federal income tax purposes, the spinoff should qualify as a tax-free distribution under certain sections of the Internal Revenue Code. If any of the factual representations and assumptions made in connection with obtaining the tax opinion are inaccurate or incomplete in any material respect, then we will not be able to rely on the tax opinion. Furthermore, the tax opinion will not be binding on the Internal Revenue Service (IRS) or the courts. Accordingly, the IRS or the courts may challenge the conclusions stated in the tax opinion and such challenge could prevail.

If, notwithstanding our receipt of the tax opinion, the spinoff is determined to be taxable, then (i) we would be subject to tax as if we sold the stock distributed in the spinoff in a taxable sale for its fair market value; and (ii) each shareholder who receives stock distributed in the spinoff would be treated as receiving a distribution of property in an amount equal to the fair market value of such stock that would generally result in varied tax liabilities for each shareholder, which may be substantial.

The proposed spinoff may result in disruptions to, and negatively impact our relationships with, our customers and other business partners.

Uncertainty related to the proposed separation may lead customers and other parties to terminate or attempt to negotiate changes in existing business relationships. These disruptions could have a material and adverse effect on our businesses, financial condition, results of operations, and prospects. The effect of such disruptions could be exacerbated by any delays in the completion of the separation.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

41

Item 6. Exhibits

The following documents are filed as Exhibits to this report:

		Incorporated by Reference			Filed
Exhibit No.	Exhibit Description	Form	Exhibit	Filing Date	Herewith
3.5	Amended and Restated Bylaws of JDS Uniphase Corporation	8-K	3.5	1/27/2015
10.9	Form of Indemnification Agreement	8-K	10.9	4/20/2015
10.11	Separation Agreement between JDS Uniphase Corporation and Rex Jackson dated February 24, 2015	8-K	10.1	2/26/2015
31.1	Certification of the Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
31.2	Certification of the Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
101.INS	XBRL Instance				X
101.SCH	XBRL Taxonomy Extension Schema				X
101.CAL	XBRL Taxonomy Extension Calculation				X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document				X
101.LAB	XBRL Taxonomy Extension Calculation				X
101.PRE	XBRL Taxonomy Extension Presentation				X

42

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.

JDS Uniphase Corporation

(Registrant)

/s/ REX S. JACKSON

By: Rex S. Jackson

Executive Vice President and Chief Financial Officer

(Duly Authorized Officer and Principal Financial and Accounting Officer)

Date: May 5, 2015

43

EX-31.1

Exhibit 31.1

JDS UNIPHASE CORPORATION

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas H. Waechter, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of JDS Uniphase Corporation;

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 officer(s) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 officer(s) 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 the registrant’s board of directors (or persons performing the equivalent functions):

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: May 5, 2015

/s/ THOMAS H. WAECHTER

Thomas H. Waechter

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

JDS UNIPHASE CORPORATION

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Rex S. Jackson, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of JDS Uniphase Corporation;

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 officer(s) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 officer(s) 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 the registrant’s board of directors (or persons performing the equivalent functions):

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: May 5, 2015

/s/ REX S. JACKSON

Rex S. Jackson

Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

JDS UNIPHASE CORPORATION

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of JDS Uniphase Corporation (the “Company”) on Form 10-Q for the quarter ended March 28, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Thomas H. Waechter, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, 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 at the dates and for the periods indicated.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Dated: May 5, 2015

/s/ THOMAS H. WAECHTER

Thomas H. Waechter

Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

JDS UNIPHASE CORPORATION

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of JDS Uniphase Corporation (the “Company”) on Form 10-Q for the quarter ended March 28, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Rex S. Jackson, Executive Vice President and Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, 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 at the dates and for the periods indicated.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Dated: May 5, 2015

/s/ REX S. JACKSON

Rex S. Jackson

Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

XML

Mergers and Acquisitions (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended
	Dec. 10, 2013	Dec. 27, 2014	Jan. 06, 2014	Mar. 28, 2015	Sep. 27, 2014
Trendium
Acquisitions
Purchase price paid in cash	$ 26.1
Working capital adjustment and holdback payment	2.5
Additional business acquisition information
Holdback payment		2.5
Maximum period for the holdback payments to be released		1 year
Network Instruments
Acquisitions
Purchase price paid in cash			208.5
Working capital adjustment and holdback payment			20.0
Additional business acquisition information
Holdback payments, minus any deductions for actual or pending claims to be paid in second tranche				9.9
Period for release of final holdback payment				1 year
Holdback payment					$ 9.8
Period for release of holdback payments after closing date					6 months

XML

Employee Defined Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
Components of the net periodic cost for the pension and benefits plans
Service cost	$ 0.1	$ 0.2	$ 0.4	$ 0.4
Interest cost	0.9	1.2	2.9	3.6
Expected return on plan assets	(0.5)	(0.4)	(1.3)	(1.2)
Recognized net actuarial (gains)/losses	0.1		0.4	0.1
Net periodic benefit cost	0.6	1.0	2.4	2.9
Defined benefit plan contribution during fiscal year			4.4
Pension Benefit Plans
Change in plan assets:
Contribution incurred			4.7
UK pension plan
Change in plan assets:
Employer contributions			1.1
Switzerland pension plan
Change in plan assets:
Employer contributions			$ 0.4

XML

Restructuring and Related Charges (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			9 Months Ended		3 Months Ended
	Mar. 28, 2015	Dec. 27, 2014 item	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014	Sep. 27, 2014 item	Dec. 28, 2013 item	Jun. 28, 2014 item
Restructuring and Related Charges
Contractual obligations under the operating lease, net of sublease income, fair value	$ 1.1			$ 1.1				3.1
New reportable segments		2
Summary of various restructuring plans
Accrual balance at the beginning of the period				26.2		26.2
Restructuring expenses	8.3		3.6	20.9	3.8
Cash Settlements				(18.2)
Non-cash settlements and other adjustments				(1.6)
Accrual balance at the end of the period	27.3			27.3
Separation Restructuring Plan (Workforce Reduction)
Restructuring and Related Charges
Number of employees expected to be reduced	80
CCOP Robbinsville Closure Plan (Workforce Reduction)
Restructuring and Related Charges
Number of employees expected to be reduced						30
Summary of various restructuring plans
Restructuring expenses	0.1			1.6
Cash Settlements				(1.1)
Accrual balance at the end of the period	0.5			0.5
Central Finance and IT Restructuring Plan (Workforce Reduction) | Hologram Business
Restructuring and Related Charges
Number of employees expected to be reduced							20
NE Realignment Plan | Hologram Business
Restructuring and Related Charges
Number of employees expected to be reduced								100
CCOP Serangoon Closure Plan
Summary of various restructuring plans
Accrual balance at the beginning of the period				1.7		1.7
Restructuring expenses	0.3			0.4
Cash Settlements				(1.8)
Accrual balance at the end of the period	0.3			0.3
CCOP Serangoon Closure Plan | Hologram Business
Restructuring and Related Charges
Number of employees expected to be reduced								40
Shared Services Restructuring Plan | Hologram Business
Restructuring and Related Charges
Number of employees expected to be reduced								40
NE Product Strategy Restructuring Plan | Hologram Business
Restructuring and Related Charges
Number of employees expected to be reduced			60
Other plans
Summary of various restructuring plans
Accrual balance at the beginning of the period				0.7		0.7
Restructuring expenses	0.1			0.7
Cash Settlements				(1.0)
Accrual balance at the end of the period	0.4			0.4
Plans Prior to Fiscal 2013
Summary of various restructuring plans
Accrual balance at the beginning of the period				2.5		2.5
Restructuring expenses				0.6
Cash Settlements				(1.5)
Non-cash settlements and other adjustments				(0.3)
Accrual balance at the end of the period	1.3			1.3
Workforce Reduction | Separation Restructuring Plan (Workforce Reduction)
Restructuring and Related Charges
Number of employees expected to be reduced	220
New reportable segments		2
Summary of various restructuring plans
Restructuring expenses	7.4			16.4
Cash Settlements				(4.0)
Non-cash settlements and other adjustments				(0.2)
Accrual balance at the end of the period	12.2			12.2
Workforce Reduction | CCOP Robbinsville Closure Plan (Workforce Reduction)
Summary of various restructuring plans
Restructuring expenses				1.5
Cash Settlements				(1.1)
Accrual balance at the end of the period	0.4			0.4
Workforce Reduction | Central Finance and IT Restructuring Plan (Workforce Reduction)
Summary of various restructuring plans
Accrual balance at the beginning of the period				1.5		1.5
Cash Settlements				(0.1)
Non-cash settlements and other adjustments				(0.3)
Accrual balance at the end of the period	1.1			1.1
Workforce Reduction | NE Realignment Plan
Summary of various restructuring plans
Accrual balance at the beginning of the period				4.6		4.6
Restructuring expenses	0.3			0.3
Cash Settlements				(4.0)
Non-cash settlements and other adjustments				(0.1)
Accrual balance at the end of the period	0.8			0.8
Workforce Reduction | CCOP Serangoon Closure Plan
Summary of various restructuring plans
Accrual balance at the beginning of the period				1.7		1.7
Restructuring expenses				0.1
Cash Settlements				(1.6)
Accrual balance at the end of the period	0.2			0.2
Workforce Reduction | Shared Services Restructuring Plan
Summary of various restructuring plans
Accrual balance at the beginning of the period				1.8		1.8
Restructuring expenses				0.1
Cash Settlements				(0.9)
Accrual balance at the end of the period	1.0			1.0
Workforce Reduction | NE Product Strategy Restructuring Plan
Summary of various restructuring plans
Accrual balance at the beginning of the period				4.4		4.4
Restructuring expenses				0.4
Cash Settlements				(1.6)
Non-cash settlements and other adjustments				(0.7)
Accrual balance at the end of the period	2.5			2.5
Ottawa Lease Exit Costs
Summary of various restructuring plans
Accrual balance at the beginning of the period				3.1		3.1
Restructuring expenses	(0.9)			(0.9)
Cash Settlements				(0.8)
Non-cash settlements and other adjustments				(0.3)
Accrual balance at the end of the period	1.1			1.1
Lease Costs | CCOP Robbinsville Closure Plan (Workforce Reduction)
Summary of various restructuring plans
Restructuring expenses	0.1			0.1
Accrual balance at the end of the period	0.1			0.1
Lease Costs | CCOP Serangoon Closure Plan
Summary of various restructuring plans
Restructuring expenses	0.3			0.3
Cash Settlements				(0.2)
Accrual balance at the end of the period	0.1			0.1
Lease Costs | NE Lease Restructuring Plan (first floor)
Summary of various restructuring plans
Accrual balance at the beginning of the period				6.9		6.9
Restructuring expenses	0.1			0.5
Cash Settlements				(1.8)
Accrual balance at the end of the period	5.6			5.6
Lease Costs | NE Lease Restructuring Plan (Lease Costs)
Summary of various restructuring plans
Accrual balance at the beginning of the period				2.1		2.1
Restructuring expenses				(0.1)
Cash Settlements				(0.4)
Accrual balance at the end of the period	$ 1.6			$ 1.6

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
Changes in warranty reserve
Balance as of beginning of period	$ 5.4	$ 6.8	$ 6.3	$ 6.9
Provision for warranty	1.6	1.7	4.5	6.3
Utilization of reserve	(0.8)	(1.2)	(4.4)	(4.3)
Adjustments related to pre-existing warranties (including changes in estimates)	(0.8)	(0.4)	(1.0)	(2.0)
Balance as of end of period	$ 5.4	$ 6.9	$ 5.4	$ 6.9
Minimum
Product Warranties
Warranty Term for most products			3 months
Maximum
Product Warranties
Warranty Term for most products			1 year

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Acquired Developed Technology and Other Intangibles (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014	Sep. 27, 2014	Jun. 28, 2014
Acquired developed technology and other intangibles
Gross carrying amount of finite lived intangibles	$ 743.5		$ 743.5			$ 778.2
Accumulated Amortization	(622.1)		(622.1)			(607.5)
Net carrying amount of finite lived intangibles	121.4		121.4			170.7
Net Carrying amount of in-process research and development intangibles	3.5		3.5			7.1
Gross Carrying Amount	747.0		747.0			785.3
Intangibles, net	124.9		124.9			177.8
Amortization expenses	15.8	16.2	47.0	43.0
Estimated future amortization expense
Remainder of 2015	12.0		12.0
2016	37.8		37.8
2017	34.7		34.7
2018	22.2		22.2
2019	10.9		10.9
Thereafter	3.8		3.8
Net carrying amount of intangibles	121.4		121.4
Operating expense | Trendium
Estimated future amortization expense
Impairment charge			1.9		1.9
Acquired developed technology
Acquired developed technology and other intangibles
Gross carrying amount of finite lived intangibles	529.0		529.0			548.8
Accumulated Amortization	(456.3)		(456.3)			(443.1)
Net carrying amount of finite lived intangibles	72.7		72.7			105.7
Other
Acquired developed technology and other intangibles
Gross carrying amount of finite lived intangibles	22.5		22.5			24.2
Accumulated Amortization	(21.2)		(21.2)			(22.1)
Net carrying amount of finite lived intangibles	1.3		1.3			2.1
Customer relationships
Acquired developed technology and other intangibles
Gross carrying amount of finite lived intangibles	192.0		192.0			205.2
Accumulated Amortization	(144.6)		(144.6)			(142.3)
Net carrying amount of finite lived intangibles	47.4		47.4			62.9
Completed in-process research and development | Network Instruments
Acquired developed technology and other intangibles
Completion of in-process research and development project					$ 1.7
Useful life of intangible assets					52 months

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Employee Defined Benefit Plans (Tables)

9 Months Ended

Mar. 28, 2015

Employee Defined Benefit Plans

Schedule of net periodic cost for the pension plans

The following table presents the components of the net periodic cost for the pension plans (in millions):

	Three Months Ended						Nine Months Ended
Pension Benefits	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Service cost	$	0.1		$	0.2		$	0.4		$	0.4
Interest cost	0.9			1.2			2.9			3.6
Expected return on plan assets	(0.5		)	(0.4		)	(1.3		)	(1.2		)
Recognized net actuarial (gains)/losses	0.1			—			0.4			0.1
Net periodic benefit cost	$	0.6		$	1.0		$	2.4		$	2.9

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Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Mar. 28, 2015

Accumulated Other Comprehensive (Loss) Income

Schedule of components of accumulated other comprehensive (loss) income

For the nine months ended March 28, 2015, the changes in accumulated other comprehensive (loss) income by component net of tax were as follows (in millions):

	Unrealized losses on available-for- sale investments			Foreign currency translation adjustments			Defined benefit obligation, net of tax (1)			Total
Beginning balance as of June 28, 2014	$	(2.8	)	$	26.2		$	(12.3	)	$	11.1
Other comprehensive (loss) income before reclassification adjustments	(0.4		)	(63.0		)	—			(63.4		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			0.4			0.4
Net current-period other comprehensive (loss) income	(0.4		)	(63.0		)	0.4			(63.0		)
Ending balance as of March 28, 2015	$	(3.2	)	$	(36.8	)	$	(11.9	)	$	(51.9	)

(1) Amount represents the amortization of actuarial losses included as a component of Selling, general and administrative expense (“SG&A”) in the Consolidated Statements of Operations for the nine months ended March 28, 2015. There was no tax impact. Refer to “Note 14. Employee Defined Benefit Plans” for more details on the computation of net periodic cost for pension plans.

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
Components of the Company's income tax (benefit) expense
Income tax benefit	$ (17.4)	$ (17.2)	$ (2.5)	$ (13.7)
Uncertain tax benefits related to the settlement of an audit/deferred tax assets due to the expiration of the statute of limitations in a non-US jurisdiction and/or other similar nature	21.8		21.8	21.7
Income tax benefit intraperiod tax allocation related to other comprehensive income				$ 5.1

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Investments and Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014	Jun. 28, 2014
Available-For-Sale Investments
Amortized Cost/ Carrying Cost	$ 566.5		$ 566.5		$ 588.8
Gross Unrealized Gains	0.1		0.1		0.3
Gross Unrealized Losses	(0.3)		(0.3)		(0.2)
Available for Sale Investments at Fair Value	566.3		566.3		588.9
Other-than-temporary impairment loss	0	0	0	0
Contractual maturities of debt securities classified as available-for-sale securities, Amortized cost
Amortized cost of amounts maturing in less than 1 year	413.8		413.8
Amortized cost of amounts maturing in 1-5 years	151.7		151.7
Amortized cost of amounts maturing in more than 5 years	1.0		1.0
Total amortized cost of debt available-for-sale securities	566.5		566.5
Contractual maturities of the debt securities classified as available-for-sale securities, Estimated fair value
Estimated fair value amounts maturing in less than 1 year	413.7		413.7
Estimated fair value amounts maturing in 1 -5 years	151.8		151.8
Estimated fair value amounts maturing in more than 5 years	0.8		0.8
Total estimated fair value of debt available-for-sale securities	566.3		566.3
Term of maturities of securities classified as current assets included in short-term investments			12 months
Cash equivalents
Available-For-Sale Investments
Available for Sale Investments at Fair Value	79.2		79.2		39.8
Short-term investment
Available-For-Sale Investments
Available for Sale Investments at Fair Value	486.3		486.3		548.3
Other non-current assets
Available-For-Sale Investments
Available for Sale Investments at Fair Value	0.8		0.8		0.8
Asset-backed securities
Available-For-Sale Investments
Amortized Cost/ Carrying Cost	75.3		75.3		94.7
Gross Unrealized Gains					0.1
Gross Unrealized Losses	(0.2)		(0.2)		(0.2)
Available for Sale Investments at Fair Value	75.1		75.1		94.6
U.S. treasuries
Available-For-Sale Investments
Amortized Cost/ Carrying Cost	34.9		34.9		36.8
Available for Sale Investments at Fair Value	34.9		34.9		36.8
U.S. Agencies
Available-For-Sale Investments
Amortized Cost/ Carrying Cost	96.3		96.3		70.0
Available for Sale Investments at Fair Value	96.3		96.3		70.0
Municipal bonds and sovereign debt instruments
Available-For-Sale Investments
Amortized Cost/ Carrying Cost	11.6		11.6		16.8
Available for Sale Investments at Fair Value	11.6		11.6		16.8
Corporate securities
Available-For-Sale Investments
Amortized Cost/ Carrying Cost	348.4		348.4		370.5
Gross Unrealized Gains	0.1		0.1		0.2
Gross Unrealized Losses	(0.1)		(0.1)
Available for Sale Investments at Fair Value	$ 348.4		$ 348.4		$ 370.7

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Earnings Per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014	Aug. 21, 2013
Numerator:
Net (loss) income	$ (13.2)	$ (1.5)	$ (48.0)	$ 7.6
Denominator:
Basic	233.2	234.0	232.1	234.1
Effect of dilutive securities from stock-based benefit plans				3.6
Diluted	233.2	234.0	232.1	237.7
Basic net (loss) income per share from:
Basic	$ (0.06)	$ (0.01)	$ (0.21)	$ 0.03
Diluted net (loss) income per share from:
Diluted	$ (0.06)	$ (0.01)	$ (0.21)	$ 0.03
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	14.1	14.8	14.4	4.0
0.625% Senior Convertible Debentures due 2033 ("notes")
Convertible notes
Interest rate on senior convertible notes (as a percent)	0.625%		0.625%		0.625%
Conversion price of debt (in dollars per share)	$ 18.83		$ 18.83
Employee stock options and ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	3.7	4.6	3.8	1.1
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	10.4	10.2	10.6	2.9

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Stock-Based Compensation (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014	Mar. 27, 2015
Impact on the entity's results of operations of recording stock-based compensation by function
Stock-based compensation cost (in dollars)	$ 19.6	$ 16.9	$ 50.3	$ 48.3
Stock-based compensation capitalized to inventory (in dollars)			1.9
Modification
Impact on the entity's results of operations of recording stock-based compensation by function
Stock-based compensation cost (in dollars)	3.2		4.9
Extended exercise period for fully exercisable options resulted from modification					2 years
Total incremental Share-based compensation resulted from modification			6.3
Cost of sales
Impact on the entity's results of operations of recording stock-based compensation by function
Stock-based compensation cost (in dollars)	2.3	2.7	7.0	7.7
Research and development
Impact on the entity's results of operations of recording stock-based compensation by function
Stock-based compensation cost (in dollars)	3.9	4.1	11.5	11.7
Selling, general and administrative
Impact on the entity's results of operations of recording stock-based compensation by function
Stock-based compensation cost (in dollars)	13.4	10.1	31.8	28.9
Full Value Awards - Total
Impact on the entity's results of operations of recording stock-based compensation by function
Vesting period			3 years
Unrecognized stock-based compensation	83.9		83.9
Estimated amortization period			2 years 1 month 6 days
Exercise price (in dollars per share)	$ 0		$ 0
Withholding taxes liability paid			17.2	18.3
Full Value Awards - Total | Minimum
Impact on the entity's results of operations of recording stock-based compensation by function
Vesting period			1 year
Full Value Awards - Total | Maximum
Impact on the entity's results of operations of recording stock-based compensation by function
Vesting period			4 years
RSUs
Impact on the entity's results of operations of recording stock-based compensation by function
Granted (in shares)			5.6	5.5
Restricted Stock Units with Time-based Conditions
Impact on the entity's results of operations of recording stock-based compensation by function
Vesting period			3 years
Granted (in shares)			4.9	4.9
Percentage of first tranche vested			33.00%
Initial vesting period			1 year
Subsequent vesting period			2 years
Restricted Stock Units with Market Conditions (MSU)
Impact on the entity's results of operations of recording stock-based compensation by function
Granted (in shares)			0.7	0.6
Aggregate grant-date fair value (in dollars)			$ 9.4	$ 9.2

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Debts and Letters of Credit (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended		0 Months Ended
	Mar. 28, 2015 item	Mar. 29, 2014	Mar. 28, 2015 item	Mar. 29, 2014	Aug. 21, 2013	Jun. 28, 2014
Details of the Company's debt:
Effective interest rate (as a percent)	5.40%	5.40%	5.40%	5.40%
Effective interest rate and interest expense for the contractual interest and the accretion of debt discount:
Effective interest rate (as a percent)	5.40%	5.40%	5.40%	5.40%
Interest expense-contractual interest	$ 1.0	$ 1.0	$ 3.0	$ 2.4
Accretion of debt discount	6.3	6.0	18.8	14.6
Outstanding Letters of Credit
Number of standby letters of credit	11		11
Outstanding balance	30.0		30.0		0
Revolving Credit Facility
Debt details
Revolving credit facility terminated					250.0
Details of the Company's debt:
Unamortized portion of debt issuance cost					1.3
0.625% Senior Convertible Debentures due 2033 ("notes")
Debt details
Conversion price of convertible debt (in dollars per share)	$ 18.83		$ 18.83
Amount outstanding	650.0		650.0			650.0
Details of the Company's debt:
Principal amount of 0.625% Senior Convertible Notes	650.0		650.0			650.0
Unamortized discount of liability component	(94.8)		(94.8)			(113.7)
Carrying amount of liability component	555.2		555.2		515.6	536.3
Carrying amount of equity component	134.4		134.4		134.4	134.4
Interest rate on senior convertible notes (as a percent)	0.625%		0.625%		0.625%
Aggregate principal amount of convertible debt					650.0
Proceeds from issuance of convertible notes after issuance costs					636.3
Discount rate used to calculate the carrying value of the liability component of the convertible debt (as a percent)					5.40%
Variable rate basis on which discount rate is based	5-year swap		5-year swap
Remaining term of convertible notes	3 years 4 months 24 days		3 years 4 months 24 days
Deferred finance costs					13.7
Liability component, debt issuance cost					10.9
Equity component, debt issuance cost					2.8
Fair market value of convertible debt	669.2		669.2			653.0
0.625% Senior Convertible Debentures due 2033 ("notes") | Other non-current assets
Details of the Company's debt:
Unamortized portion of debt issuance cost	$ 7.7		$ 7.7

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Earnings Per Share

9 Months Ended

Mar. 28, 2015

Earnings Per Share

Earnings Per Share

Note 3. Earnings Per Share

The following table sets forth the computation of basic and diluted net (loss) income per share (in millions, except per share data):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Numerator:
Net (loss) income	$	(13.2	)	$	(1.5	)	$	(48.0	)	$	7.6
Denominator:
Weighted-average number of common shares outstanding:
Basic	233.2			234.0			232.1			234.1
Effect of dilutive securities from stock-based benefit plans	—			—			—			3.6
Diluted	233.2			234.0			232.1			237.7
Net (loss) income per share from:
Basic	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03
Diluted	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03

The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive (in millions):

	Three Months Ended		Nine Months Ended
	March 28, 2015 (1)(2)	March 29, 2014 (1)(2)	March 28, 2015 (1)(2)	March 29, 2014 (2)
Employee stock options and ESPP	3.7	4.6	3.8	1.1
RSUs	10.4	10.2	10.6	2.9
Total potentially dilutive securities	14.1	14.8	14.4	4.0

(1) As the Company incurred a net loss in the period, potential dilutive securities from employee stock options, employee stock purchase plan (“ESPP”) and Restricted Stock Units (“RSUs”) have been excluded from the diluted net loss per share computations as their effects were deemed anti-dilutive.

(2) The Company’s 0.625% Senior Convertible Notes due 2033 (the “2033 Notes”) are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $18.83 per share is payable in cash, shares of the Company’s common stock or a combination of both. Refer to “Note 10. Debts and Letters of Credit” for more details.

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Investments and Fair Value Measurements (Details 2) (Short-term investment, Tradings securities, USD $) In Millions, unless otherwise specified	Mar. 28, 2015	Jun. 28, 2014
Trading securities related to deferred compensation plan
Deferred compensation plan assets	$ 3.4	$ 3.9
Debt securities
Trading securities related to deferred compensation plan
Deferred compensation plan assets	0.4	0.4
Money market instruments and funds
Trading securities related to deferred compensation plan
Deferred compensation plan assets	0.7	0.7
Marketable equity investments
Trading securities related to deferred compensation plan
Deferred compensation plan assets	$ 2.3	$ 2.8

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Acquired Developed Technology and Other Intangibles (Tables)

9 Months Ended

Mar. 28, 2015

Acquired Developed Technology and Other Intangibles

Schedule of acquired developed technology, customer relationships and other intangibles

The following tables present details of the Company’s acquired developed technology, customer relationships and other intangibles (in millions):

As of March 28, 2015	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	529.0	$	(456.3	)	$	72.7
Customer relationships	192.0		(144.6		)	47.4
Other	22.5		(21.2		)	1.3
Total intangibles subject to amortization	743.5		(622.1		)	121.4
In-process research and development intangibles	3.5		—			3.5
Total intangibles	$	747.0	$	(622.1	)	$	124.9

As of June 28, 2014	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	548.8	$	(443.1	)	$	105.7
Customer relationships	205.2		(142.3		)	62.9
Other	24.2		(22.1		)	2.1
Total intangibles subject to amortization	778.2		(607.5		)	170.7
In-process research and development intangibles	7.1		—			7.1
Total intangibles	$	785.3	$	(607.5	)	$	177.8

Schedule of estimated future amortization

Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of March 28, 2015, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):

Fiscal Years
Remainder of 2015	$	12.0
2016	37.8
2017	34.7
2018	22.2
2019	10.9
Thereafter	3.8
Total amortization	$	121.4

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Goodwill (Tables)

9 Months Ended

Mar. 28, 2015

Goodwill

Schedule of changes in goodwill

The following table presents the changes in goodwill allocated to the reportable segments (in millions):

	Network Enablement (1)			Service Enablement (1)			Communications and Commercial Optical Products (2)			Optical Security and Performance Products		Total
Balance as of June 28, 2014	$	158.0		$	94.8		$	5.9		$	8.3	$	267.0
Currency translation adjustments	(5.1		)	(3.0		)	(0.4		)	—		(8.5		)
Balance as of March 28, 2015	$	152.9		$	91.8		$	5.5		$	8.3	$	258.5

(1) In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, NE and SE. The goodwill of NSE was allocated between the two new segments based on their relative fair value as of June 29, 2014, the first day of fiscal 2015. The Company determined that based on its cash flow structure, organizational structure and the financial information provided to and reviewed by Management, NE and SE also represented new reporting units for fiscal 2015. Refer to “Note 16. Operating Segments” for more information.

(2) The goodwill balance as of March 28, 2015 for the CCOP segment relates to the acquisition of Time-Bandwidth and has been allocated to the Lasers reporting unit.

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Operating Segments (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			9 Months Ended
	Mar. 28, 2015	Sep. 27, 2014 item	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
Net revenue:
Net Revenue	$ 410.7		$ 418.0	$ 1,281.4	$ 1,294.6
Total net revenue	410.7		418.0	1,281.4	1,294.6
Operating income (loss):
Total operating income	31.3		27.2	113.9	111.8
Unallocated amounts:
Restructuring and related charges	(8.3)		(3.6)	(20.9)	(3.8)
Interest and other income (expense), net	0.3		0.6	1.2	0.4
Interest expense	(8.6)		(7.7)	(25.4)	(21.3)
Loss before income taxes	(30.6)		(18.7)	(50.5)	(6.1)
Realignment and other charges	16.2			32.9
Number of reporting units		2
Corporate
Operating income (loss):
Total operating income	(21.5)		(23.3)	(66.2)	(70.7)
Segment Reconciling Items
Unallocated amounts:
Stock-based compensation	(19.6)		(16.9)	(50.3)	(48.3)
Amortization of intangibles	(15.8)		(16.2)	(47.0)	(43.0)
Loss (gain) on disposal of long-lived assets	(0.5)		(1.0)	(0.5)	(0.8)
Restructuring and related charges	(8.3)		(3.6)	(20.9)	(3.8)
Other charges related to non-recurring activities	(9.4)		(1.1)	(21.5)	(1.1)
Interest and other income (expense), net	0.3		0.6	1.2	0.4
Interest expense	(8.6)		(7.7)	(25.4)	(21.3)
Loss before income taxes	(30.6)		(18.7)	(50.5)	(6.1)
Network Enablement
Net revenue:
Net Revenue	128.1		136.0	394.6	436.9
Operating income (loss):
Total operating income	25.8		18.7	68.4	72.1
Service Enablement
Net revenue:
Net Revenue	39.0		36.3	132.9	102.3
Operating income (loss):
Total operating income	(9.5)		(8.8)	(11.2)	(20.9)
Communications and Commercial Optical Products
Net revenue:
Net Revenue	195.2		194.6	611.6	597.2
Operating income (loss):
Total operating income	17.4		22.4	69.1	73.5
Optical Security and Performance Products
Net revenue:
Net Revenue	48.4		51.1	142.3	158.2
Operating income (loss):
Total operating income	$ 19.1		$ 18.2	$ 53.8	$ 57.8

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Investments and Fair Value Measurements (Details 3) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Mar. 28, 2015	Jun. 28, 2014
Maximum
Foreign Currency Forward Contracts
Foreign currency forward contracts, expiration period	120 days	120 days
Level 3
Fair Value Measurements
Total debt available-for-sale securities	0	0
Recurring basis | Cash and cash equivalents
Fair Value Measurements
Total assets	212.2
Recurring basis | Short-term investment
Fair Value Measurements
Total assets	489.7
Recurring basis | Restricted cash
Fair Value Measurements
Total assets	26.2
Recurring basis | Other non-current assets
Fair Value Measurements
Total assets	4.6
Recurring basis | Total fair value
Fair Value Measurements
Total debt available-for-sale securities	566.3
Money market funds	163.0
Trading securities	3.4
Total assets	732.7
Recurring basis | Total fair value | U.S. treasuries
Fair Value Measurements
Total debt available-for-sale securities	34.9
Recurring basis | Total fair value | U.S. Agencies
Fair Value Measurements
Total debt available-for-sale securities	96.3
Recurring basis | Total fair value | Municipal bonds and sovereign debt instruments
Fair Value Measurements
Total debt available-for-sale securities	11.6
Recurring basis | Total fair value | Asset-backed securities
Fair Value Measurements
Total debt available-for-sale securities	75.1
Recurring basis | Total fair value | Corporate securities
Fair Value Measurements
Total debt available-for-sale securities	348.4
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Total debt available-for-sale securities	34.9
Money market funds	163.0
Trading securities	3.4
Total assets	201.3
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries
Fair Value Measurements
Total debt available-for-sale securities	34.9
Recurring basis | Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Total debt available-for-sale securities	531.4
Total assets	531.4
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Agencies
Fair Value Measurements
Total debt available-for-sale securities	96.3
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bonds and sovereign debt instruments
Fair Value Measurements
Total debt available-for-sale securities	11.6
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities
Fair Value Measurements
Total debt available-for-sale securities	75.1
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities
Fair Value Measurements
Total debt available-for-sale securities	348.4

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Debts and Letters of Credit (Tables)

9 Months Ended

Mar. 28, 2015

Debts and Letters of Credit

Schedule of details of the Company's debt

As of March 28, 2015 and June 28, 2014, the Company’s Long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component of the 0.625% Senior Convertible Notes as discussed below. The following table presents the details of the Company’s debt (in millions):

	March 28, 2015			June 28, 2014
Principal amount of 0.625% Senior Convertible Notes	$	650.0		$	650.0
Unamortized discount of liability component	(94.8		)	(113.7		)
Carrying amount of liability component	$	555.2		$	536.3
Carrying amount of equity component (1)	$	134.4		$	134.4

(1) Included in Additional paid-in-capital on the Consolidated Balance Sheets.

Summary of effective interest rate and interest expense for the contractual interest and the accretion of debt discount

The following table presents the effective interest rate and the interest expense for the contractual interest and the accretion of debt discount (in millions, except for the effective interest rate):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Effective interest rate	5.4		%	5.4		%	5.4		%	5.4		%
Interest expense-contractual interest	$	1.0		$	1.0		$	3.0		$	2.4
Accretion of debt discount	6.3			6.0			18.8			14.6

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Restructuring and Related Charges (Tables)

9 Months Ended

Mar. 28, 2015

Restructuring and Related Charges

Schedule of various restructuring plans

The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three and nine months ended March 28, 2015 were as follows (in millions):

	Balance as of June 28, 2014		Nine Months Ended March 28, 2015 Charges			Cash Settlements			Non-cash Settlements and Other Adjustments			Balance as of March 28, 2015		Three Months Ended March 28, 2015 Charges
Fiscal 2015 Plan
Separation Restructuring Plan (Workforce Reduction)	$	—	$	16.4		$	(4.0	)	$	(0.2	)	$	12.2	$	7.4
CCOP Robbinsville Closure Plan:
Workforce Reduction	—		1.5			(1.1		)	—			0.4		—
Lease Costs	—		0.1			—			—			0.1		0.1
Total CCOP Robbinsville Restructuring Plan	—		1.6			(1.1		)	—			0.5		0.1
Fiscal 2014 Plans
NE Realignment Plan (Workforce Reduction)	4.6		0.3			(4.0		)	(0.1		)	0.8		0.3
CCOP Serangoon Closure Plan
Workforce Reduction	1.7		0.1			(1.6		)	—			0.2		—
Lease Costs	—		0.3			(0.2		)	—			0.1		0.3
Total CCOP Serangoon Closure Plan	1.7		0.4			(1.8		)	—			0.3		0.3
Shared Services Restructuring Plan (Workforce Reduction)	1.8		0.1			(0.9		)	—			1.0		—
NE Product Strategy Restructuring Plan (Workforce Reduction)	4.4		0.4			(1.6		)	(0.7		)	2.5		—
NE Lease Restructuring Plan (first floor)	6.9		0.5			(1.8		)	—			5.6		0.1
Central Finance and IT Restructuring Plan (Workforce Reduction)	1.5		—			(0.1		)	(0.3		)	1.1		—
Fiscal 2013 Plans
NE Lease Restructuring Plan	2.1		(0.1		)	(0.4		)	—			1.6		—
Other plans	0.7		0.7			(1.0		)	—			0.4		0.1
Plans Prior to Fiscal 2013	2.5		0.6			(1.5		)	(0.3		)	1.3		—
Total	$	26.2	$	20.9		$	(18.2	)	$	(1.6	)	$	27.3	$	8.3
Ottawa Lease Exit Costs	$	3.1	$	(0.9	)	$	(0.8	)	$	(0.3	)	$	1.1	$	(0.9	)

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Recently Issued Accounting Pronouncements

9 Months Ended

Mar. 28, 2015

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Note 2. Recently Issued Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance to provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. This guidance is effective for the Company in the first quarter of fiscal 2017 and may apply to the qualified and the non-qualified pension plans in certain countries. Prospective application is required, and early adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements.

In April 2015, the FASB issued new authoritative guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding liability, consistent with debt discounts or premiums. This guidance is effective for the Company in the first quarter of fiscal 2017, and will be applied retrospectively. The consolidated balance sheet of each individual period presented will be adjusted to reflect the period-specific effects of applying this new guidance.

In May 2014, the FASB issued new authoritative guidance related to revenue recognition. This guidance will replace current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This standard allows for either full retrospective adoption or modified retrospective adoption. The Company is evaluating the effect that this new guidance will have on its consolidated financial statements and the related disclosures.

On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. Presently, the FASB’s proposed deferral is not a final decision.

In April 2014, the FASB issued authoritative guidance, which specifies that only disposals, such as a disposal of a major line of business, representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This guidance is effective for the Company in the first quarter of fiscal 2016 and may apply to the treatment of the proposed tax-free spinoff of the CCOP business expected to be completed by the third calendar quarter of 2015 (the first quarter of fiscal 2016). Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Company is evaluating the impact of adopting this new accounting guidance on the consolidated financial statements.

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Stock-Based Compensation (Tables)

9 Months Ended

Mar. 28, 2015

Stock-Based Compensation

Schedule of the impact on the entity's results of operations of recording stock-based compensation by function

The impact on the Company’s results of operations of recording stock-based compensation by function for three and nine months ended March 28, 2015 and March 29, 2014 was as follows (in millions):

	Three Months Ended				Nine Months Ended
	March 28, 2015		March 29, 2014		March 28, 2015		March 29, 2014
Cost of sales	$	2.3	$	2.7	$	7.0	$	7.7
Research and development	3.9		4.1		11.5		11.7
Selling, general and administrative	13.4		10.1		31.8		28.9
	$	19.6	$	16.9	$	50.3	$	48.3

Schedule of valuation assumptions for MSU using Monte Carlo simulation

	Nine Months Ended
	March 28, 2015		March 29, 2014
Volatility of common stock	40.8	%	53.9	%
Average volatility of peer companies	53.4	%	58.6	%
Average correlation coefficient of peer companies	0.2156		0.2920
Risk-free interest rate	0.6	%	0.8	%

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Balance Sheet and Other Details (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Mar. 28, 2015	Jun. 28, 2014
Activities and balances for allowance for doubtful accounts and allowance for sales returns
Balance at Beginning of Period	$ 3.5
Charged to Costs and Expenses	1.9
Adjustments	(1.7)
Balance at End of Period	3.7
Inventories
Finished goods	87.5	78.4
Work in process	31.5	40.1
Raw materials	36.8	34.8
Inventories, net	155.8	153.3
Allowance for doubtful accounts
Activities and balances for allowance for doubtful accounts and allowance for sales returns
Balance at Beginning of Period	3.0
Charged to Costs and Expenses	0.7
Adjustments	(0.7)
Balance at End of Period	3.0
Allowance for sales returns
Activities and balances for allowance for doubtful accounts and allowance for sales returns
Balance at Beginning of Period	0.5
Charged to Costs and Expenses	1.2
Adjustments	(1.0)
Balance at End of Period	$ 0.7

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Stock-Based Compensation (Details 2) (MSUs, Monte Carlo simulation)	9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
MSUs | Monte Carlo simulation
Valuation Assumptions
Volatility (as a percent)	40.80%	53.90%
Average volatility of peer companies (as a percent)	53.40%	58.60%
Average correlation coefficient of peer companies	0.2156	0.2920
Risk-free interest rate (as a percent)	0.60%	0.80%

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenue	$ 410.7	$ 418.0	$ 1,281.4	$ 1,294.6
Cost of sales	215.5	222.3	665.3	687.5
Amortization of acquired technologies	10.9	11.0	32.0	32.3
Gross profit	184.3	184.7	584.1	574.8
Operating expenses:
Research and development	76.7	74.1	232.3	216.0
Selling, general and administrative	116.7	113.4	342.2	329.5
Amortization of other intangibles	4.9	5.2	15.0	10.7
Restructuring and related charges	8.3	3.6	20.9	3.8
Total operating expenses	206.6	196.3	610.4	560.0
(Loss) income from operations	(22.3)	(11.6)	(26.3)	14.8
Interest and other income (expense), net	0.3	0.6	1.2	0.4
Interest expense	(8.6)	(7.7)	(25.4)	(21.3)
Loss before income taxes	(30.6)	(18.7)	(50.5)	(6.1)
Benefit from income taxes	(17.4)	(17.2)	(2.5)	(13.7)
Net (loss) income	$ (13.2)	$ (1.5)	$ (48.0)	$ 7.6
Basic net (loss) income per share from:
Basic	$ (0.06)	$ (0.01)	$ (0.21)	$ 0.03
Diluted net (loss) income per share from:
Diluted	$ (0.06)	$ (0.01)	$ (0.21)	$ 0.03
Shares used in per share calculation:
Basic	233.2	234.0	232.1	234.1
Diluted	233.2	234.0	232.1	237.7

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Goodwill (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 27, 2014 item	Jun. 28, 2014	Mar. 28, 2015
Changes in goodwill
Balance at the beginning of the period	$ 267.0		$ 267.0
Currency translation adjustments			(8.5)
Balance at the end of the period		267.0	258.5
Number of reporting units	2
Impairment of Goodwill
Impairment of goodwill	0	0
Network Enablement
Changes in goodwill
Balance at the beginning of the period	158.0		158.0
Currency translation adjustments			(5.1)
Balance at the end of the period			152.9
Service Enablement
Changes in goodwill
Balance at the beginning of the period	94.8		94.8
Currency translation adjustments			(3.0)
Balance at the end of the period			91.8
Optical Security and Performance Products
Changes in goodwill
Balance at the end of the period		8.3	8.3
Communications and Commercial Optical Products
Changes in goodwill
Balance at the beginning of the period	5.9		5.9
Currency translation adjustments			(0.4)
Balance at the end of the period			$ 5.5

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
OPERATING ACTIVITIES:
Net (loss) income	$ (48.0)	$ 7.6
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation expense	60.3	53.8
Amortization of acquired technologies and other intangibles	47.0	43.0
Stock-based compensation	50.3	48.3
Amortization of debt issuance costs and accretion of debt discount	20.4	16.3
Amortization of discount and premium on investments, net	2.7	3.1
Other	4.5	0.9
Changes in operating assets and liabilities, net of impact of acquisitions of businesses:
Accounts receivable	(14.3)	1.0
Inventories	(6.7)	4.8
Other current and non-current assets	(5.2)	(1.5)
Accounts payable	(17.6)	23.2
Income taxes payable	(15.6)	(0.6)
Deferred revenue, current and non-current	2.4	9.3
Deferred taxes, net	13.6	(26.9)
Accrued payroll and related expenses	(38.7)	(33.0)
Accrued expenses and other current and non-current liabilities	(20.6)	(22.9)
Net cash provided by operating activities	34.5	126.4
INVESTING ACTIVITIES:
Purchases of available-for-sale investments	(460.0)	(885.1)
Maturities of available-for-sale investments	450.2	327.7
Sales of available-for-sale investments	69.5	186.8
Changes in restricted cash	5.0	(1.8)
Acquisition of businesses, net of cash acquired		(219.3)
Capital expenditures	(68.7)	(68.1)
Proceeds from the sale of assets	5.2	8.0
Net cash provided by (used in) investing activities	1.2	(651.8)
FINANCING ACTIVITIES:
Proceeds from issuance of senior convertible debt		650.0
Payment of debt issuance costs		(13.5)
Repurchase and retirement of common stock	(4.7)	(100.0)
Payment of financing obligations	(23.1)	(1.3)
Proceeds from exercise of employee stock options and employee stock purchase plan	14.0	22.0
Net cash (used in) provided by financing activities	(13.8)	557.2
Effect of exchange rates on cash and cash equivalents	(19.9)	1.7
Net increase in cash and cash equivalents	2.0	33.5
Cash and cash equivalents at beginning of period	297.2	281.0
Cash and cash equivalents at end of period	$ 299.2	$ 314.5

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Operating Segments (Tables)

9 Months Ended

Mar. 28, 2015

Operating Segments

Schedule of information on reportable segments

Information on reportable segments is as follows (in millions):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Net revenue:
Network Enablement	$	128.1		$	136.0		$	394.6		$	436.9
Service Enablement	39.0			36.3			132.9			102.3
Communications and Commercial Optical Products	195.2			194.6			611.6			597.2
Optical Security and Performance Products	48.4			51.1			142.3			158.2
Net revenue	$	410.7		$	418.0		$	1,281.4		$	1,294.6
Operating income (loss):
Network Enablement	$	25.8		$	18.7		$	68.4		$	72.1
Service Enablement	(9.5		)	(8.8		)	(11.2		)	(20.9		)
Communications and Commercial Optical Products	17.4			22.4			69.1			73.5
Optical Security and Performance Products	19.1			18.2			53.8			57.8
Corporate	(21.5		)	(23.3		)	(66.2		)	(70.7		)
Total segment operating income	31.3			27.2			113.9			111.8
Unallocated amounts:
Stock-based compensation	(19.6		)	(16.9		)	(50.3		)	(48.3		)
Amortization of intangibles	(15.8		)	(16.2		)	(47.0		)	(43.0		)
Loss on disposal of long-lived assets	(0.5		)	(1.0		)	(0.5		)	(0.8		)
Restructuring and related charges (1)	(8.3		)	(3.6		)	(20.9		)	(3.8		)
Other charges related to non-recurring activities (1)	(9.4		)	(1.1		)	(21.5		)	(1.1		)
Interest and other income (expense), net	0.3			0.6			1.2			0.4
Interest expense	(8.6		)	(7.7		)	(25.4		)	(21.3		)
(Loss) income from operations before income taxes	$	(30.6	)	$	(18.7	)	$	(50.5	)	$	(6.1	)

(1) During the three and nine months ended March 28, 2015, the Company incurred incremental expenses of $16.2 million and $32.9 million, respectively, to effect the Company’s plan to separate into two separate public companies. These incremental expenses included (a) restructuring charges, (b) accounting, legal, and other professional fees, (c) and cost of additional personnel and related costs dedicated to affect the separation and/or to enable Lumentum to operate successfully immediately following the split.

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Operating Segments

9 Months Ended

Mar. 28, 2015

Operating Segments

Operating Segments

Note 16. Operating Segments

The Company evaluates its reportable segments in accordance with the authoritative guidance on segment reporting. The Company’s Chief Executive Officer, Thomas H. Waechter, is the Company’s Chief Operating Decision Maker (“CODM”) pursuant to the guidance. The CODM allocates resources to the segments based on their business prospects, competitive factors, net revenue and operating results.

The Company is a leading provider of network service and enablement solutions and optical products for telecommunications (“Telecom”) service providers, cable operators, network equipment manufacturers (“NEMs”) and enterprises. JDSU’s diverse technology portfolio also fights counterfeiting and enables commercial lasers for a range of manufacturing applications.

In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, Network Enablement and Service Enablement. Splitting NSE into two reportable segments provides greater clarity and transparency regarding the markets, financial performance and business models of the NE and SE businesses. NE is a hardware-centric and more mature business consisting primarily of NSE’s traditional communications test instrument products. SE is a more software-centric business consisting primarily of software solutions that are embedded within the network and enterprise performance management solutions. Historical segment numbers have been recast to conform to this new reporting structure in our financial statements.

The Company’s reportable segments are:

(i) Network Enablement:

NE provides testing solutions that access the network to perform build out and maintenance tasks. These solutions include instruments and software to design, build, turn-up, certify, troubleshoot, and optimize networks.

(ii) Service Enablement:

SE solutions are embedded systems that yield network, service and application performance data. These solutions—including microprobes and software—monitor, collect and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization.

(iii) Communications and Commercial Optical Products:

CCOP provides optical components, modules, subsystems, and solutions used by Telecom and data communications (“Datacom”) network equipment manufacturers (“NEMs”) and both traditional and cloud/data center service providers. These products enable the transmission and transport of video, audio and text data over high-capacity fiber optic cables. Transmission products primarily consist of optical transceivers, optical transponders, and their supporting components such as modulators and source lasers, including innovative products such as the Tunable Small Form-factor Pluggable Plus transceiver. Transport products primarily consist of modules or sub-systems containing optical amplifiers, reconfigurable optical add/drop multiplexers (“ROADMs”) or Wavelength Selective Switches, Optical Channel Monitors and their supporting components. Our products for 3D sensing applications, formerly referred to as our gesture recognition products, include a light source product. Customer solutions containing our 3D sensing products let a person control electronic or computer devices with natural body or hand gestures instead of using a remote, mouse or other device.

CCOP also provides a broad laser portfolio that serve customers in markets and applications such as manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining such as drilling in printed circuit boards, wafer singulation and solar cell scribing. These products include diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers. In addition, our photonic power products include fiber optic-based systems for delivering and measuring electrical power.

(iv) Optical Security and Performance Products:

OSP provides innovative optical security solutions, with a strategic focus on serving the anti-counterfeiting market through advanced security pigments, thread substrates and printed features for the currency, pharmaceutical and consumer electronic segments. OSP also provides thin-film coating solutions for 3D and gesture recognition applications.

The accounting policies of the reportable segments are the same as those described in the Company’s Annual Report on Form 10-K for the year ended June 28, 2014. The Company evaluates segment performance based on operating income (loss), excluding certain infrequent or unusual items.

The amounts shown as Corporate consist of certain unallocated corporate-level operating expenses. In addition, the Company does not allocate stock-based compensation, acquisition-related charges and amortization of intangibles, restructuring and related charges, non-operating income and expenses, or other non-recurring charges to its segments as highlighted in the table below.

Information on reportable segments is as follows (in millions):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Net revenue:
Network Enablement	$	128.1		$	136.0		$	394.6		$	436.9
Service Enablement	39.0			36.3			132.9			102.3
Communications and Commercial Optical Products	195.2			194.6			611.6			597.2
Optical Security and Performance Products	48.4			51.1			142.3			158.2
Net revenue	$	410.7		$	418.0		$	1,281.4		$	1,294.6
Operating income (loss):
Network Enablement	$	25.8		$	18.7		$	68.4		$	72.1
Service Enablement	(9.5		)	(8.8		)	(11.2		)	(20.9		)
Communications and Commercial Optical Products	17.4			22.4			69.1			73.5
Optical Security and Performance Products	19.1			18.2			53.8			57.8
Corporate	(21.5		)	(23.3		)	(66.2		)	(70.7		)
Total segment operating income	31.3			27.2			113.9			111.8
Unallocated amounts:
Stock-based compensation	(19.6		)	(16.9		)	(50.3		)	(48.3		)
Amortization of intangibles	(15.8		)	(16.2		)	(47.0		)	(43.0		)
Loss on disposal of long-lived assets	(0.5		)	(1.0		)	(0.5		)	(0.8		)
Restructuring and related charges (1)	(8.3		)	(3.6		)	(20.9		)	(3.8		)
Other charges related to non-recurring activities (1)	(9.4		)	(1.1		)	(21.5		)	(1.1		)
Interest and other income (expense), net	0.3			0.6			1.2			0.4
Interest expense	(8.6		)	(7.7		)	(25.4		)	(21.3		)
(Loss) income from operations before income taxes	$	(30.6	)	$	(18.7	)	$	(50.5	)	$	(6.1	)

(1) During the three and nine months ended March 28, 2015, the Company incurred incremental expenses of $16.2 million and $32.9 million, respectively, to effect the Company’s plan to separate into two separate public companies. These incremental expenses included (a) restructuring charges, (b) accounting, legal, and other professional fees, (c) and cost of additional personnel and related costs dedicated to affect the separation and/or to enable Lumentum to operate successfully immediately following the split.

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Basis of Presentation (Details)	3 Months Ended	12 Months Ended
	Dec. 27, 2014 item	Jun. 27, 2015	Jun. 28, 2014	Sep. 10, 2014 item
Fiscal years, change in reportable segments and spinoff plans announcement
Number of weeks in fiscal year		364 days	364 days
New reportable segments	2
Number of new public entities				2
Minimum
Fiscal years, change in reportable segments and spinoff plans announcement
Number of weeks in fiscal year		364 days
Maximum
Fiscal years, change in reportable segments and spinoff plans announcement
Number of weeks in fiscal year		371 days

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Earnings Per Share (Tables)

9 Months Ended

Mar. 28, 2015

Earnings Per Share

Schedule of computation of basic and diluted net (loss) income per share

The following table sets forth the computation of basic and diluted net (loss) income per share (in millions, except per share data):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Numerator:
Net (loss) income	$	(13.2	)	$	(1.5	)	$	(48.0	)	$	7.6
Denominator:
Weighted-average number of common shares outstanding:
Basic	233.2			234.0			232.1			234.1
Effect of dilutive securities from stock-based benefit plans	—			—			—			3.6
Diluted	233.2			234.0			232.1			237.7
Net (loss) income per share from:
Basic	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03
Diluted	$	(0.06	)	$	(0.01	)	$	(0.21	)	$	0.03

Schedule of weighted average potentially dilutive securities excluded from the computation because their effect would have been anti-dilutive

The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net (loss) income per share because their effect would have been anti-dilutive (in millions):

	Three Months Ended		Nine Months Ended
	March 28, 2015 (1)(2)	March 29, 2014 (1)(2)	March 28, 2015 (1)(2)	March 29, 2014 (2)
Employee stock options and ESPP	3.7	4.6	3.8	1.1
RSUs	10.4	10.2	10.6	2.9
Total potentially dilutive securities	14.1	14.8	14.4	4.0

(1) As the Company incurred a net loss in the period, potential dilutive securities from employee stock options, employee stock purchase plan (“ESPP”) and Restricted Stock Units (“RSUs”) have been excluded from the diluted net loss per share computations as their effects were deemed anti-dilutive.

(2) The Company’s 0.625% Senior Convertible Notes due 2033 (the “2033 Notes”) are not included in the table above. The par amount of convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and then the “in-the-money” conversion benefit feature at the conversion price above $18.83 per share is payable in cash, shares of the Company’s common stock or a combination of both. Refer to “Note 10. Debts and Letters of Credit” for more details.

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Basis of Presentation

9 Months Ended

Mar. 28, 2015

Basis of Presentation

Basis of Presentation

Note 1. Basis of Presentation

The financial information for JDS Uniphase Corporation (“JDSU,” also referred to as “the Company”) as of March 28, 2015 and for the three and nine months ended March 28, 2015 and March 29, 2014 is unaudited, and includes all normal and recurring adjustments Company management (“Management”) considers necessary for a fair statement of the financial information set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 28, 2014.

The balance sheet as of June 28, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and nine months ended March 28, 2015 and March 29, 2014 may not be indicative of results for the year ending June 27, 2015 or any future periods.

Fiscal Years

The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30th. The Company’s fiscal 2015 is a 52-week year ending on June 27, 2015. The Company’s fiscal 2014 was a 52-week year ending on June 28, 2014.

Change in Reportable Segments

During the first quarter of fiscal 2015 the Company reorganized its Network Service and Enablement (“NSE”) reportable segment into two separate reportable segments: Network Enablement (“NE”) and Service Enablement (“SE”). This change does not impact previously reported consolidated financial information. However, historical information related to the NSE reportable segment has been recast to reflect the new NE and SE reportable segment structure. Refer to “Note 16. Operating Segments” for more information.

JDSU Separation

On September 10, 2014, the Company announced plans to separate into two publicly traded companies: an optical components and commercial lasers company consisting of JDSU’s current Communications and Commercial Optical Products (“CCOP”) segment, and a network and service enablement company consisting of JDSU’s current Network Enablement (“NE”), Service Enablement (“SE”) and Optical Security and Performance Products (“OSP”) segments. On February 26, 2015, the Company announced that the optical components and commercial lasers company will be named Lumentum Holdings Inc. (“Lumentum”), and the network and service enablement company will be renamed Viavi Solutions Inc. (“Viavi”) at the time of the separation. The separation is expected to occur through a tax-free pro rata spinoff of Lumentum to JDSU shareholders, though the structure is subject to change based upon various business, tax and regulatory factors. The Company expects to complete the separation by the calendar third quarter of 2015.

Principles of Consolidation

The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenue and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and on various assumptions about the future believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 28, 2015	Mar. 29, 2014	Mar. 28, 2015	Mar. 29, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Net (loss) income	$ (13.2)	$ (1.5)	$ (48.0)	$ 7.6
Net change in available-for-sale investments, net of tax:
Unrealized holding gains arising during period	0.1	0.1	(0.4)	0.3
Net change in cumulative translation adjustment, net of tax	(27.1)	(1.3)	(63.0)	8.5
Net change in defined benefit obligation, net of tax:
Amortization of actuarial losses	0.1		0.4	0.1
Net change in Accumulated other comprehensive (loss) income	(26.9)	(1.2)	(63.0)	8.9
Comprehensive (loss) income	$ (40.1)	$ (2.7)	$ (111.0)	$ 16.5

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Restructuring and Related Charges

9 Months Ended

Mar. 28, 2015

Restructuring and Related Charges

Restructuring and Related Charges

Note 11. Restructuring and Related Charges

The Company continues to engage in targeted restructuring events intended to consolidate its operations, rationalize the manufacturing of its products and align its businesses in response to market conditions. As of March 28, 2015 and June 28, 2014, the Company’s total restructuring accrual was $27.3 million and $26.2 million, respectively. During the three and nine months ended March 28, 2015, the Company recorded restructuring related expenses of $8.3 million and $20.9 million, respectively. During the three and nine months ended March 29, 2014, the Company recorded restructuring related expenses of $3.6 million and $3.8 million, respectively. The Company’s restructuring charges can include severance and benefit costs to eliminate a specified number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods.

Summary of Restructuring Plans

The adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three and nine months ended March 28, 2015 were as follows (in millions):

	Balance as of June 28, 2014		Nine Months Ended March 28, 2015 Charges			Cash Settlements			Non-cash Settlements and Other Adjustments			Balance as of March 28, 2015		Three Months Ended March 28, 2015 Charges
Fiscal 2015 Plan
Separation Restructuring Plan (Workforce Reduction)	$	—	$	16.4		$	(4.0	)	$	(0.2	)	$	12.2	$	7.4
CCOP Robbinsville Closure Plan:
Workforce Reduction	—		1.5			(1.1		)	—			0.4		—
Lease Costs	—		0.1			—			—			0.1		0.1
Total CCOP Robbinsville Restructuring Plan	—		1.6			(1.1		)	—			0.5		0.1
Fiscal 2014 Plans
NE Realignment Plan (Workforce Reduction)	4.6		0.3			(4.0		)	(0.1		)	0.8		0.3
CCOP Serangoon Closure Plan
Workforce Reduction	1.7		0.1			(1.6		)	—			0.2		—
Lease Costs	—		0.3			(0.2		)	—			0.1		0.3
Total CCOP Serangoon Closure Plan	1.7		0.4			(1.8		)	—			0.3		0.3
Shared Services Restructuring Plan (Workforce Reduction)	1.8		0.1			(0.9		)	—			1.0		—
NE Product Strategy Restructuring Plan (Workforce Reduction)	4.4		0.4			(1.6		)	(0.7		)	2.5		—
NE Lease Restructuring Plan (first floor)	6.9		0.5			(1.8		)	—			5.6		0.1
Central Finance and IT Restructuring Plan (Workforce Reduction)	1.5		—			(0.1		)	(0.3		)	1.1		—
Fiscal 2013 Plans
NE Lease Restructuring Plan	2.1		(0.1		)	(0.4		)	—			1.6		—
Other plans	0.7		0.7			(1.0		)	—			0.4		0.1
Plans Prior to Fiscal 2013	2.5		0.6			(1.5		)	(0.3		)	1.3		—
Total	$	26.2	$	20.9		$	(18.2	)	$	(1.6	)	$	27.3	$	8.3
Ottawa Lease Exit Costs	$	3.1	$	(0.9	)	$	(0.8	)	$	(0.3	)	$	1.1	$	(0.9	)

As of March 28, 2015 and June 28, 2014, $8.5 million and $11.7 million, respectively, of our restructuring liability was long-term in nature and included as a component of Other non-current liabilities, with the remaining short-term portion included as a component of Other current liabilities on the Consolidated Balance Sheets.

The Company had also previously recorded lease exit charges, net of assumed sub-lease income in prior fiscal years related to its Ottawa facility that was included in SG&A expenses. The fair value of the remaining contractual obligations, net of sublease income, was $1.1 million and $3.1 million as of March 28, 2015 and June 28, 2014, respectively. The Company included the long-term portion of the contract obligations of $0.6 million and $2.0 million in Other non-current liabilities as of each period end, and the short-term portion in Other current liabilities in the Consolidated Balance Sheets. The payments related to these lease costs are expected to be paid by the end of the third quarter of fiscal 2018.

Fiscal 2015 Plans

Separation Restructuring Plan

During the second quarter of fiscal 2015, Management approved a plan to eliminate certain positions in its shared services functions in connection with the Company’s plan to split into two separate public companies. Further, certain sales, R&D and operations positions will be eliminated in the CCOP, NE and SE segments to align to the Company’s product market strategy and lower manufacturing costs as the Company moves forward with its separation plan. In addition, during the third quarter of fiscal 2015, Management approved additional headcount adding to the plan approximately 80 employees primarily in the NE and SE segments. As a result, a restructuring charge of $7.4 million was recorded for severance and employee benefits during the third quarter of fiscal 2015. In total approximately 220 employees primarily in manufacturing, R&D, and SG&A functions located in North America, Latin America, Europe and Asia were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2016.

CCOP Robbinsville Closure Plan

During the first quarter of fiscal 2015, Management approved a CCOP plan to optimize operations and gain efficiencies by closing the Robbinsville, New Jersey site and consolidating roles and responsibilities across North America. As a result, approximately 30 employees primarily in manufacturing, R&D and SG&A functions located in North America were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2015.

Fiscal 2014 Plans

NE Realignment Plan

During the fourth quarter of fiscal 2014, Management approved a NE plan to realign its operations and strategy to allow for greater investment in high-growth areas. As a result, approximately 100 employees primarily in manufacturing, R&D and SG&A functions located in United States, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the second quarter of fiscal 2016.

CCOP Serangoon Closure Plan

During the fourth quarter of fiscal 2014, Management approved a CCOP plan to close the Serangoon office located in Singapore and move to a lower cost region in order to reduce manufacturing and R&D expenses. As a result, approximately 40 employees primarily in manufacturing and R&D functions were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2015.

Shared Services Restructuring Plan

During the fourth quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in its shared services functions in order to reduce cost, standardize global processes and establish a more efficient organization. As a result, approximately 40 employees primarily in the general and administrative functions located in the United States, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the second quarter of fiscal 2016.

NE Product Strategy Restructuring Plan

During the third quarter of fiscal 2014, Management approved a NE plan to realign its services, support and product resources in response to market conditions in the mobile assurance market and to increase focus on software products and next generation solutions through acquisitions and R&D. As a result, approximately 60 employees primarily in SG&A and manufacturing functions located in North America, Latin America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the first quarter of fiscal 2020.

NE Lease Restructuring Plan (first floor)

During the second quarter of fiscal 2014, Management approved a NE plan to exit the remaining space in Germantown, Maryland. As of June 28, 2014, the Company exited the space in Germantown under the plan. The fair value of the remaining

contractual obligations, net of sublease income, as of March 28, 2015 was $5.6 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019.

Central Finance and Information Technology (“IT”) Restructuring Plan

During the second quarter of fiscal 2014, Management approved a plan to eliminate positions and re-define roles and responsibilities in the Finance and IT organization to align with the future state of the organizations under new executive management and move positions to lower-cost locations where appropriate. As a result, approximately 20 employees primarily in SG&A functions located in North America, Asia and Europe were impacted. Payments related to the remaining severance and benefits accrual are expected to be paid by the end of the third quarter of fiscal 2022.

Fiscal 2013 Plans

NE Lease Restructuring Plan

During the fourth quarter of fiscal 2013, Management approved a plan to consolidate space in Germantown, Maryland and Beijing, China, primarily used by the NE segment. As of June 29, 2013, the Company exited the second floor space in Germantown and Beijing under the plan. The fair value of the remaining contractual obligations, net of sublease income as of March 28, 2015 was $1.6 million. Payments related to the Germantown lease costs are expected to be paid by the end of the second quarter of fiscal 2019. Final payments related to the Beijing lease costs were paid during the first quarter of fiscal 2014.

Other Plans

Other plans account for an immaterial portion of the total restructuring accrual, with minimal or no revisions recorded.

Plans Prior to Fiscal 2013

The restructuring accrual for plans that commenced prior to fiscal year 2013 was $1.3 million, which consists of immaterial various restructuring plans that commenced prior to fiscal 2013.

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Document and Entity Information	9 Months Ended
	Mar. 28, 2015	Apr. 25, 2015
Document and Entity Information
Entity Registrant Name	JDS UNIPHASE CORP /CA/
Entity Central Index Key	0000912093
Document Type	10-Q
Document Period End Date	Mar. 28, 2015
Amendment Flag	false
Current Fiscal Year End Date	--06-27
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		234,147,235
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

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Income Taxes

9 Months Ended

Mar. 28, 2015

Income Taxes

Income Taxes

Note 12. Income Taxes

The Company recorded an income tax benefit of $17.4 million and $2.5 million for the three and nine months ended March 28, 2015, respectively. The Company recorded an income tax benefit of $17.2 million and $13.7 million for the three and nine months ended March 29, 2014, respectively.

The income tax benefit recorded for the three and nine months ended March 28, 2015, primarily relates to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the year in those locations, offset by a $21.8 million tax benefit recognized upon the settlement of an audit in a non-U.S. jurisdiction.

The income tax benefit recorded for the three and nine months ended March 29, 2014, primarily relates to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the year in those locations offset by the recognition of $21.7 million of uncertain tax benefits related to deferred tax assets due to the expiration of the statute of limitations in a non-US jurisdiction. A tax benefit of $5.1 million was recorded for the nine months ended March 29, 2014, related to the income tax intraperiod tax allocation rules in relation to other comprehensive income.

The income tax benefit and expense recorded differs from the expected tax expense or benefit that would be calculated by applying the federal statutory rate to the Company’s income or loss before income taxes primarily due to the increases in valuation allowance for deferred tax assets attributable to the Company’s domestic and foreign losses from continuing operations, due to the income tax benefit recorded in continuing operations under the income tax intraperiod tax allocation rules, and the recognition of the unrecognized tax benefits.

As of March 28, 2015 and June 28, 2014, the Company’s unrecognized tax benefits totaled $38.3 million and $60.3 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $1.6 million accrued for the payment of interest and penalties at March 28, 2015. The unrecognized tax benefits that may be recognized during the next twelve months are approximately $0.3 million.

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CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Mar. 28, 2015	Jun. 28, 2014
Current assets:
Cash and cash equivalents	$ 299.2	$ 297.2
Short-term investments	489.7	552.2
Restricted cash	26.6	31.9
Accounts receivable, net (Note 6)	305.3	296.2
Inventories, net	155.8	153.3
Prepayments and other current assets	80.3	78.7
Total current assets	1,356.9	1,409.5
Property, plant and equipment, net	278.1	288.8
Goodwill	258.5	267.0
Intangibles, net	124.9	177.8
Deferred income taxes	149.9	183.3
Other non-current assets	23.4	25.5
Total assets	2,191.7	2,351.9
Current liabilities:
Accounts payable	109.2	137.1
Accrued payroll and related expenses	59.9	79.9
Income taxes payable	12.7	21.4
Deferred revenue	76.9	77.5
Accrued expenses	35.5	34.8
Other current liabilities	41.8	57.7
Total current liabilities	336.0	408.4
Long-term debt	555.2	536.3
Other non-current liabilities	181.4	219.5
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred Stock, $0.001 par value; 1 million shares authorized; 1 share at March 28, 2015 and June 28, 2014, issued and outstanding
Common Stock, $0.001 par value; 1 billion shares authorized; 234 million shares at March 28, 2015 and 230 million shares at June 28, 2014, issued and outstanding	0.2	0.2
Additional paid-in capital	70,004.2	69,957.0
Accumulated deficit	(68,833.4)	(68,780.6)
Accumulated other comprehensive (loss) income	(51.9)	11.1
Total stockholders equity	1,119.1	1,187.7
Total liabilities and stockholders equity	$ 2,191.7	$ 2,351.9

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Balance Sheet and Other Details

9 Months Ended

Mar. 28, 2015

Balance Sheet and Other Details

Balance Sheet and Other Details

Note 6. Balance Sheet and Other Details

Accounts receivable reserves and allowances

The activities and balances for allowance for doubtful accounts and allowance for sales returns were as follows (in millions):

	June 28, 2014		Charged to Costs and Expenses		Adjustments (1)			March 28, 2015
Allowance for doubtful accounts	$	3.0	$	0.7	$	(0.7	)	$	3.0
Allowance for sales returns	0.5		1.2		(1.0		)	0.7
Total accounts receivable reserves	$	3.5	$	1.9	$	(1.7	)	$	3.7

(1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries.

Inventories, net

Inventories, net are stated at the lower of cost or market, and include material, labor and manufacturing overhead costs. The components of Inventories, net were as follows (in millions):

	March 28, 2015		June 28, 2014
Finished goods	$	87.5	$	78.4
Work in process	31.5		40.1
Raw materials	36.8		34.8
Inventories, net	$	155.8	$	153.3

Prepayments and other current assets

The components of Prepayments and other current assets were as follows (in millions):

	March 28, 2015		June 28, 2014
Prepayments	$	34.2	$	33.3
Other current assets	46.1		45.4
Prepayments and other current assets	$	80.3	$	78.7

Other current liabilities

The components of Other current liabilities were as follows (in millions):

	March 28, 2015		June 28, 2014
Deferred compensation plan	$	3.4	$	3.9
Warranty	4.0		5.3
Restructuring	18.8		14.5
Holdback liabilities from acquisitions	2.3		22.5
Other	13.3		11.5
Other current liabilities	$	41.8	$	57.7

Other non-current liabilities

The components of Other non-current liabilities were as follows (in millions):

	March 28, 2015		June 28, 2014
Pension and post-employment benefits	$	84.8	$	107.3
Financing obligation	29.3		31.4
Long-term deferred revenue	27.4		22.7
Other	39.9		58.1
Other non-current liabilities	$	181.4	$	219.5

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Mergers and Acquisitions

9 Months Ended

Mar. 28, 2015

Mergers and Acquisitions

Mergers and Acquisitions

Note 5. Mergers and Acquisitions

Holdback Payments Related to Fiscal 2014 Acquisitions

On December 10, 2013 (“Trendium Closing Date”), the Company acquired certain technology and other assets from Trendium Inc (“Trendium”), a privately-held U.S. company, for a purchase price of $26.1 million in cash, including a holdback payment of approximately $2.5 million which was reserved for potential breaches of representations and warranties. During the second quarter of fiscal 2015, the Company made the $2.5 million holdback payment following the one-year anniversary of the Trendium Closing Date. The payment is classified as a financing activity within the Consolidated Statements of Cash Flows.

On January 6, 2014 (“Network Instruments Closing Date”), the Company completed the acquisition of Network Instruments, LLC (“Network Instruments”) a privately-held U.S. company, for $208.5 million in cash, subject to final cash and working capital adjustments, including holdback payments of approximately $20.0 million which were reserved for potential breaches of representations and warranties. During the first quarter of fiscal 2015, the Company made the required six-month $9.8 million holdback payment, net of working capital adjustments. During the third quarter of fiscal 2015, the Company made the final holdback payment of $9.9 million, net of working capital adjustments, following the one-year anniversary of the Network Instruments Closing Date. The payments are classified as a financing activity within the Consolidated Statements of Cash Flows.

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Basis of Presentation (Policies)

9 Months Ended

Mar. 28, 2015

Basis of Presentation

Fiscal Years

Fiscal Years

The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to June 30th. The Company’s fiscal 2015 is a 52-week year ending on June 27, 2015. The Company’s fiscal 2014 was a 52-week year ending on June 28, 2014.

Change in Reportable Segments

Change in Reportable Segments

During the first quarter of fiscal 2015 the Company reorganized its Network Service and Enablement (“NSE”) reportable segment into two separate reportable segments: Network Enablement (“NE”) and Service Enablement (“SE”). This change does not impact previously reported consolidated financial information. However, historical information related to the NSE reportable segment has been recast to reflect the new NE and SE reportable segment structure. Refer to “Note 16. Operating Segments” for more information.

JDSU Separation

JDSU Separation

On September 10, 2014, the Company announced plans to separate into two publicly traded companies: an optical components and commercial lasers company consisting of JDSU’s current Communications and Commercial Optical Products (“CCOP”) segment, and a network and service enablement company consisting of JDSU’s current Network Enablement (“NE”), Service Enablement (“SE”) and Optical Security and Performance Products (“OSP”) segments. On February 26, 2015, the Company announced that the optical components and commercial lasers company will be named Lumentum Holdings Inc. (“Lumentum”), and the network and service enablement company will be renamed Viavi Solutions Inc. (“Viavi”) at the time of the separation. The separation is expected to occur through a tax-free pro rata spinoff of Lumentum to JDSU shareholders, though the structure is subject to change based upon various business, tax and regulatory factors. The Company expects to complete the separation by the calendar third quarter of 2015.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Use of Estimates

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenue and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and on various assumptions about the future believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information.

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Stock-Based Compensation

9 Months Ended

Mar. 28, 2015

Stock-Based Compensation

Stock-Based Compensation

Note 13. Stock-Based Compensation

Overview

The impact on the Company’s results of operations of recording stock-based compensation by function for three and nine months ended March 28, 2015 and March 29, 2014 was as follows (in millions):

	Three Months Ended				Nine Months Ended
	March 28, 2015		March 29, 2014		March 28, 2015		March 29, 2014
Cost of sales	$	2.3	$	2.7	$	7.0	$	7.7
Research and development	3.9		4.1		11.5		11.7
Selling, general and administrative	13.4		10.1		31.8		28.9
	$	19.6	$	16.9	$	50.3	$	48.3

Approximately $1.9 million of stock-based compensation was capitalized in inventory at March 28, 2015.

Full Value Awards

“Full Value Awards” refer to RSUs and Performance Units that are granted with the exercise price equal to zero and are converted to shares immediately upon vesting. These Full Value Awards are performance-based, time-based or a combination of both and expected to vest over one year to four years. The fair value of the time-based Full Value Awards is based on the closing market price of the Company’s common stock on the date of award.

During the nine months ended March 28, 2015 and March 29, 2014, the Company granted 5.6 million and 5.5 million RSUs, of which 0.7 million and 0.6 million, respectively, are RSUs with market conditions (“MSUs”). These MSU shares represent the target amount of grants, and the actual number of shares awarded upon vesting of the MSUs may be higher or lower depending upon the achievement of the relevant market conditions. The majority of MSUs vest in equal annual installments over three years based on the attainment of certain total shareholder return performance measures and the employee’s continued service through the vest date. The aggregate grant-date fair value of MSUs granted through the third quarter of fiscal 2015 and fiscal 2014 was estimated to be $9.4 million and $9.2 million, respectively, and was calculated using a Monte Carlo simulation. The remaining 4.9 million granted during the nine months ended March 28, 2015 and March 29, 2014 each are mainly time-based RSUs. The majority of these time-based RSUs vest over three years, with 33% vesting after one year and the balance vesting quarterly over the remaining two years.

As of March 28, 2015, $83.9 million of unrecognized stock-based compensation cost related to Full Value Awards remains to be amortized. That cost is expected to be recognized over an estimated amortization period of 2.1 years.

Full Value Awards are converted into shares upon vesting. Shares equivalent in value to the minimum withholding taxes liability on the vested shares are withheld by the Company for the payment of such taxes. During the nine months ended March 28, 2015 and March 29, 2014, the Company paid $17.2 million and $18.3 million, respectively, and classified the payments as operating cash outflows in the Consolidated Statements of Cash Flows.

Impact on Stock-based Compensation Due to Amendments in the Change of Control Benefits Plan

During the nine months ended March 28, 2015, the Company amended its Change of Control Benefits Plan (the “Plan”) to add a spin-off of certain Company assets to the circumstances that could trigger benefits under the Plan, as well as other revisions. During the current fiscal period, the Chief Executive Officer of the Company and the Chairman of the Compensation Committee approved the separation of certain executives. Pursuant to the Plan, upon termination, all unvested equity awards that have been granted or issued to certain terminated executives become immediately vested and stock options shall become fully exercisable with an extended exercise period of two years from the termination date.

The amendments resulted in a modification of equity awards for certain executives and total incremental stock-based compensation of $6.3 million, which is being amortized over the period between the modification date and the termination dates of the executives. The Company recognized $3.2 million and $4.9 million of stock-based compensation resulting from the modification during the three months ended and the nine months ended March 28, 2015, respectively.

Valuation Assumptions

The Company estimates the fair value of the MSUs on the date of grant using a Monte Carlo simulation with the following assumptions:

	Nine Months Ended
	March 28, 2015		March 29, 2014
Volatility of common stock	40.8	%	53.9	%
Average volatility of peer companies	53.4	%	58.6	%
Average correlation coefficient of peer companies	0.2156		0.2920
Risk-free interest rate	0.6	%	0.8	%

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Acquired Developed Technology and Other Intangibles

9 Months Ended

Mar. 28, 2015

Acquired Developed Technology and Other Intangibles

Acquired Developed Technology and Other Intangibles

Note 9. Acquired Developed Technology and Other Intangibles

The following tables present details of the Company’s acquired developed technology, customer relationships and other intangibles (in millions):

As of March 28, 2015	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	529.0	$	(456.3	)	$	72.7
Customer relationships	192.0		(144.6		)	47.4
Other	22.5		(21.2		)	1.3
Total intangibles subject to amortization	743.5		(622.1		)	121.4
In-process research and development intangibles	3.5		—			3.5
Total intangibles	$	747.0	$	(622.1	)	$	124.9

As of June 28, 2014	Gross Carrying Amount		Accumulated Amortization			Net
Acquired developed technology	$	548.8	$	(443.1	)	$	105.7
Customer relationships	205.2		(142.3		)	62.9
Other	24.2		(22.1		)	2.1
Total intangibles subject to amortization	778.2		(607.5		)	170.7
In-process research and development intangibles	7.1		—			7.1
Total intangibles	$	785.3	$	(607.5	)	$	177.8

During the three months ended September 27, 2014, the Company completed its in-process research and development (“IPR&D) project related to the fiscal 2014 acquisition of Network Instruments. Accordingly, $1.7 million was transferred from indefinite life intangible assets to acquired developed technology intangible assets and began amortizing over its useful life of fifty-two months.

During the three months ended December 27, 2014, the Company recorded a $1.9 million IPR&D impairment charge for an ongoing project related to the fiscal 2014 acquisition of Trendium in accordance with the authoritative accounting guidance. The charge was recorded to Research and development (“R&D”) expense in the Consolidated Statement of Operations for the nine months ended March 28, 2015.

During the three and nine months ended March 28, 2015, the Company recorded $15.8 million and $47.0 million, respectively, of amortization expense relating to acquired developed technology, customer relationships and other intangibles.

During the three and nine months ended March 29, 2014, the Company recorded $16.2 million and $43.0 million, respectively, of amortization expense relating to acquired developed technology, customer relationships and other intangibles.

Based on the carrying amount of acquired developed technology, customer relationships and other intangibles as of March 28, 2015, and assuming no future impairment of the underlying assets, the estimated future amortization is as follows (in millions):

Fiscal Years
Remainder of 2015	$	12.0
2016	37.8
2017	34.7
2018	22.2
2019	10.9
Thereafter	3.8
Total amortization	$	121.4

The acquired developed technology, customer relationships and other intangibles balance are adjusted quarterly to record the effect of currency translation adjustments.

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Investments and Fair Value Measurements

9 Months Ended

Mar. 28, 2015

Investments and Fair Value Measurements

Investments and Fair Value Measurements

Note 7. Investments and Fair Value Measurements

The Company’s investments in marketable debt and equity securities were primarily classified as available-for-sale investments.

As of March 28, 2015, the Company’s available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. treasuries	$	34.9	$	—	$	—		$	34.9
U.S. agencies	96.3		—		—			96.3
Municipal bonds and sovereign debt instruments	11.6		—		—			11.6
Asset-backed securities	75.3		—		(0.2		)	75.1
Corporate securities	348.4		0.1		(0.1		)	348.4
Total debt available-for-sale securities	$	566.5	$	0.1	$	(0.3	)	$	566.3

The Company generally classifies debt securities as cash equivalents, short-term investments or other non-current assets based on the stated maturities; however, certain securities with stated maturities of longer than twelve months which are highly liquid and available to support current operations are also classified as short-term investments. As of March 28, 2015, of the total estimated fair value, $79.2 million was classified as cash equivalents, $486.3 million was classified as short-term investments and $0.8 million was classified as other non-current assets.

In addition to the amounts presented above, as of March 28, 2015, the Company’s short-term investments classified as trading securities related to the deferred compensation plan were $3.4 million, of which $0.4 million was invested in debt securities, $0.7 million was invested in money market instruments and funds and $2.3 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net.

During the three and nine months ended March 28, 2015 and March 29, 2014, the Company recorded no other-than-temporary impairment charges in each respective period.

As of March 28, 2015, contractual maturities of the Company’s debt securities classified as available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Estimated Fair Value
Amounts maturing in less than 1 year	$	413.8	$	413.7
Amounts maturing in 1 - 5 years	151.7		151.8
Amounts maturing in more than 5 years	1.0		0.8
Total debt available-for-sale securities	$	566.5	$	566.3

As of June 28, 2014, the Company’s available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. treasuries	$	36.8	$	—	$	—		$	36.8
U.S. agencies	70.0		—		—			70.0
Municipal bonds and sovereign debt instruments	16.8		—		—			16.8
Asset-backed securities	94.7		0.1		(0.2		)	94.6
Corporate securities	370.5		0.2		—			370.7
Total debt available-for-sale securities	$	588.8	$	0.3	$	(0.2	)	$	588.9

As of June 28, 2014, of the total estimated fair value, $39.8 million was classified as cash equivalents, $548.3 million was classified as short-term investments and $0.8 million was classified as other non-current assets.

In addition to the amounts presented above, as of June 28, 2014, the Company’s short-term investments classified as trading securities, related to the deferred compensation plan, were $3.9 million, of which $0.4 million was invested in debt securities, $0.7 million was invested in money market instruments and funds and $2.8 million was invested in equity securities. Trading securities are reported at fair value, with the unrealized gains or losses resulting from changes in fair value recognized in Interest and other income (expense), net.

Fair Value Measurements

Assets measured at fair value as of March 28, 2015 are summarized below (in millions):

	Fair Value measurement as of
	March 28, 2015
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Debt available-for-sale securities:
U.S. treasuries	$	34.9	$	34.9	$	—
U.S. agencies	96.3		—		96.3
Municipal bonds and sovereign debt instruments	11.6		—		11.6
Asset-backed securities	75.1		—		75.1
Corporate securities	348.4		—		348.4
Total debt available-for-sale securities	566.3		34.9		531.4
Money market funds	163.0		163.0		—
Trading securities	3.4		3.4		—
Total assets (1)	$	732.7	$	201.3	$	531.4

(1) $212.2 million in cash and cash equivalents, $489.7 million in short-term investments, $26.2 million in restricted cash, and $4.6 million in other non-current assets on the Company’s Consolidated Balance Sheets.

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. There is an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions about the factors that market participants would use in valuing the asset or liability.

The Company’s cash and investment instruments are classified within Level 1 or Level 2 of the fair value hierarchy based on quoted prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. As of June 28, 2014 and during the three and nine months ended March 28, 2015, the Company held no Level 3 investments.

Foreign Currency Forward Contracts

The Company has foreign subsidiaries that operate and sell the Company’s products in various markets around the world. As a result, the Company is exposed to foreign exchange risks. The Company utilizes foreign exchange forward contracts and other instruments to manage foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily certain short-term intercompany receivables and payables, and to reduce the volatility of earnings and cash flows related to foreign-currency transactions.

The forward contracts, most with a term of less than 120 days, were transacted near quarter end; therefore, the fair value of the contracts as of both March 28, 2015 and June 28, 2014 is not significant. The change in the fair value of these foreign currency forward contracts is recorded as gain or loss in the Company’s Consolidated Statements of Operations as a component of Interest and other income (expense), net.

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Goodwill

9 Months Ended

Mar. 28, 2015

Goodwill

Goodwill

Note 8. Goodwill

The following table presents the changes in goodwill allocated to the reportable segments (in millions):

	Network Enablement (1)			Service Enablement (1)			Communications and Commercial Optical Products (2)			Optical Security and Performance Products		Total
Balance as of June 28, 2014	$	158.0		$	94.8		$	5.9		$	8.3	$	267.0
Currency translation adjustments	(5.1		)	(3.0		)	(0.4		)	—		(8.5		)
Balance as of March 28, 2015	$	152.9		$	91.8		$	5.5		$	8.3	$	258.5

(1) In the first quarter of fiscal 2015, the Company reorganized its NSE reportable segment into two separate reportable segments, NE and SE. The goodwill of NSE was allocated between the two new segments based on their relative fair value as of June 29, 2014, the first day of fiscal 2015. The Company determined that based on its cash flow structure, organizational structure and the financial information provided to and reviewed by Management, NE and SE also represented new reporting units for fiscal 2015. Refer to “Note 16. Operating Segments” for more information.

(2) The goodwill balance as of March 28, 2015 for the CCOP segment relates to the acquisition of Time-Bandwidth and has been allocated to the Lasers reporting unit.

The Company reviews goodwill for impairment during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that an impairment loss may have occurred. In the fourth quarter of fiscal 2014, the Company completed the annual impairment test of goodwill with no goodwill impairments.

As the Company reorganized its NSE segment into two reportable segments during the first quarter of fiscal 2015, the goodwill allocated to the new NE and SE reporting units was reviewed under the two-step quantitative goodwill impairment test in accordance with the authoritative guidance. Under the first step of the authoritative guidance for impairment testing, the fair value of the new reporting units was determined based on a combination of the income approach, which estimates the fair value based on the future discounted cash flows, and the market approach, which estimates the fair value based on comparable market prices. Based on the first step of the analysis, the Company determined that the fair value of each reporting unit is significantly above its carrying amount. As such, the Company was not required to perform step two of the analysis. The Company recorded no impairment charge as a result of the interim period impairment test performed during the three months ended September 27, 2014. There were no other events or changes in circumstances which triggered impairment review for any of the reporting units during the three and nine months ended March 28, 2015.

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Debts and Letters of Credit

9 Months Ended

Mar. 28, 2015

Debts and Letters of Credit

Debts and Letters of Credit

Note 10. Debts and Letters of Credit

As of March 28, 2015 and June 28, 2014, the Company’s Long-term debt on the Consolidated Balance Sheets represented the carrying amount of the liability component of the 0.625% Senior Convertible Notes as discussed below. The following table presents the details of the Company’s debt (in millions):

	March 28, 2015			June 28, 2014
Principal amount of 0.625% Senior Convertible Notes	$	650.0		$	650.0
Unamortized discount of liability component	(94.8		)	(113.7		)
Carrying amount of liability component	$	555.2		$	536.3
Carrying amount of equity component (1)	$	134.4		$	134.4

(1) Included in Additional paid-in-capital on the Consolidated Balance Sheets.

The Company was in compliance with all debt covenants as of March 28, 2015 and June 28, 2014, respectively.

0.625% Senior Convertible Notes

On August 21, 2013, the Company issued $650.0 million aggregate principal amount of 0.625% Senior Convertible Notes due 2033 (the “2033 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The proceeds from the 2033 Notes amounted to $636.3 million after issuance costs. The 2033 Notes are an unsecured obligation of the Company and bear interest at an annual rate of 0.625% payable in cash semi-annually in arrears on February 15 and August 15 of each year. The 2033 Notes mature on August 15, 2033 unless earlier converted, redeemed or repurchased. The 2033 Notes and its terms are described in “Note 10. Debts and Letters of Credit” of the Company’s Annual Report on Form 10-K for the year ended June 28, 2014. During the nine months ended March 28, 2015, the price of the Company’s common stock did not exceed the initial conversion price of $18.83 per share and no conversion features were triggered.

In accordance with the authoritative accounting guidance, the Company separated the 2033 Notes into liability and equity components. The carrying value of the liability component at issuance was calculated as the present value of its cash flows using a discount rate of 5.4% based on the 5-year swap rate plus credit spread as of the issuance date. The credit spread for the Company is based on the historical average “yield to worst” rate for BB rated issuers. The difference between the 2033 Notes principal and the carrying value of the liability component, representing the value of conversion premium assigned to the equity component, was recorded as a debt discount on the issuance date and is being accreted using the effective interest rate of 5.4% over the period from the issuance date through August 15, 2018 as a non-cash charge to interest expense. The carrying value of the liability component was determined to be $515.6 million, and the equity component, or debt discount, of the 2033 Notes was determined to be $134.4 million. As of March 28, 2015, the expected remaining term of the 2033 Notes is 3.4 years.

In connection with the issuance of the 2033 Notes, the Company incurred $13.7 million of issuance costs, which were bifurcated into the debt issuance costs, attributable to the liability component of $10.9 million and the equity issuance costs, attributable to the equity component of $2.8 million based on their relative values. The debt issuance costs were capitalized and are being amortized to interest expense using the effective interest rate method from issuance date through August 15, 2018. The equity issuance costs were netted against the equity component in additional paid-in capital at the issuance date. As of March 28, 2015, the unamortized portion of the debt issuance costs related to the 2033 Notes was $7.7 million, which was included in Other non-current assets on the Consolidated Balance Sheets.

Based on quoted market prices as of March 28, 2015 and June 28, 2014, the fair market value of the 2033 Notes was approximately $669.2 million and $653.0 million, respectively. The 2033 Notes are classified within Level 2 as they are not actively traded in markets.

The following table presents the effective interest rate and the interest expense for the contractual interest and the accretion of debt discount (in millions, except for the effective interest rate):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Effective interest rate	5.4		%	5.4		%	5.4		%	5.4		%
Interest expense-contractual interest	$	1.0		$	1.0		$	3.0		$	2.4
Accretion of debt discount	6.3			6.0			18.8			14.6

Revolving Credit Facility

On August 21, 2013, in addition to the close of the 2033 Notes offering, the Company terminated its existing $250.0 million revolving credit facility, which had no amounts outstanding upon termination. The $1.3 million of unamortized debt issuance costs was fully amortized to interest expense upon termination in the first quarter of fiscal 2014.

Outstanding Letters of Credit

As of March 28, 2015, the Company had 11 standby letters of credit totaling $30.0 million.

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Commitments and Contingencies (Tables)

9 Months Ended

Mar. 28, 2015

Commitments and Contingencies

Schedule of changes in the entity's warranty reserve

The following table presents the changes in the Company’s warranty reserve (in millions):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Balance as of beginning of period	$	5.4		$	6.8		$	6.3		$	6.9
Provision for warranty	1.6			1.7			4.5			6.3
Utilization of reserve	(0.8		)	(1.2		)	(4.4		)	(4.3		)
Adjustments related to pre-existing warranties (including changes in estimates)	(0.8		)	(0.4		)	(1.0		)	(2.0		)
Balance as of end of period	$	5.4		$	6.9		$	5.4		$	6.9

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Income Taxes (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 28, 2015	Jun. 28, 2014
Income Taxes
Unrecognized tax benefits	$ 38.3	$ 60.3
Accrued interest and penalties related to unrecognized tax benefits	1.6
Unrecognized tax benefits that may be recognized during the next twelve months	$ 0.3

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Commitments and Contingencies

9 Months Ended

Mar. 28, 2015

Commitments and Contingencies

Commitments and Contingencies

Note 15. Commitments and Contingencies

Legal Proceedings

The Company is subject to a variety of claims and suits that arise from time to time in the ordinary course of our business. While Management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact on its financial position, results of operations or statement of cash flows, these matters are subject to inherent uncertainties and Management’s view of these matters may change in the future. If an unfavorable final outcome occurs, it is possible there could be a material adverse impact on the Company’s financial position, results of operations or cash flows for the period in which the effect becomes reasonably estimable.

Guarantees

In accordance with authoritative guidance which requires that upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligation it assumes under that guarantee. In addition, disclosures about the guarantees that an entity has issued, including a tabular reconciliation of the changes of the entity’s product warranty liabilities, are required.

The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to: (i) divestiture agreements, under which the Company may provide customary indemnifications to purchasers of the Company’s businesses or assets; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises; and (iii) certain agreements with the Company’s officers, directors and employees, under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship.

The terms of such obligations vary. Generally, a maximum obligation is not explicitly stated. Because the obligated amounts of these types of agreements often are not explicitly stated, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, the Company has not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations on its balance sheet as of March 28, 2015 and June 28, 2014.

Product Warranties

In general, the Company offers a three-month to one-year warranty for most of its products. The Company provides reserves for the estimated costs of product warranties at the time revenue is recognized. The Company estimates the costs of its warranty obligations based on its historical experience of known product failure rates, use of materials to repair or replace defective products and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise with specific products. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.

The following table presents the changes in the Company’s warranty reserve (in millions):

	Three Months Ended						Nine Months Ended
	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Balance as of beginning of period	$	5.4		$	6.8		$	6.3		$	6.9
Provision for warranty	1.6			1.7			4.5			6.3
Utilization of reserve	(0.8		)	(1.2		)	(4.4		)	(4.3		)
Adjustments related to pre-existing warranties (including changes in estimates)	(0.8		)	(0.4		)	(1.0		)	(2.0		)
Balance as of end of period	$	5.4		$	6.9		$	5.4		$	6.9

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Balance Sheet and Other Details (Tables)

9 Months Ended

Mar. 28, 2015

Balance Sheet and Other Details

Activities and balances for allowance for doubtful accounts

The activities and balances for allowance for doubtful accounts and allowance for sales returns were as follows (in millions):

	June 28, 2014		Charged to Costs and Expenses		Adjustments (1)			March 28, 2015
Allowance for doubtful accounts	$	3.0	$	0.7	$	(0.7	)	$	3.0
Allowance for sales returns	0.5		1.2		(1.0		)	0.7
Total accounts receivable reserves	$	3.5	$	1.9	$	(1.7	)	$	3.7

(1) Represents the effect of currency translation adjustments and write-offs of uncollectible accounts, net of recoveries.

Schedule of components of Inventories, net

Inventories, net are stated at the lower of cost or market, and include material, labor and manufacturing overhead costs. The components of Inventories, net were as follows (in millions):

	March 28, 2015		June 28, 2014
Finished goods	$	87.5	$	78.4
Work in process	31.5		40.1
Raw materials	36.8		34.8
Inventories, net	$	155.8	$	153.3

Schedule of components of Prepayments and other current assets

The components of Prepayments and other current assets were as follows (in millions):

	March 28, 2015		June 28, 2014
Prepayments	$	34.2	$	33.3
Other current assets	46.1		45.4
Prepayments and other current assets	$	80.3	$	78.7

Schedule of components of Other current liabilities

The components of Other current liabilities were as follows (in millions):

	March 28, 2015		June 28, 2014
Deferred compensation plan	$	3.4	$	3.9
Warranty	4.0		5.3
Restructuring	18.8		14.5
Holdback liabilities from acquisitions	2.3		22.5
Other	13.3		11.5
Other current liabilities	$	41.8	$	57.7

Schedule of components of Other non-current liabilities

The components of Other non-current liabilities were as follows (in millions):

	March 28, 2015		June 28, 2014
Pension and post-employment benefits	$	84.8	$	107.3
Financing obligation	29.3		31.4
Long-term deferred revenue	27.4		22.7
Other	39.9		58.1
Other non-current liabilities	$	181.4	$	219.5

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Restructuring and Related Charges (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 28, 2015	Jun. 28, 2014
Restructuring accrual
Non-current	$ 8.5	$ 11.7
Other lease exit costs
Non-current	$ 0.6	$ 2.0

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Balance Sheet and Other Details (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 28, 2015	Jun. 28, 2014
Prepayments and Other Current Assets
Prepayments	$ 34.2	$ 33.3
Other current assets	46.1	45.4
Prepayments and other current assets	80.3	78.7
Other Current Liabilities
Deferred compensation plan	3.4	3.9
Warranty	4.0	5.3
Restructuring	18.8	14.5
Holdback liabilities from acquisitions	2.3	22.5
Other	13.3	11.5
Other current liabilities	41.8	57.7
Other Non-Current Liabilities
Pension and post-employment benefits	84.8	107.3
Financing obligation	29.3	31.4
Long-term deferred revenue	27.4	22.7
Other	39.9	58.1
Other non-current liabilities	$ 181.4	$ 219.5

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 28, 2015	Jun. 28, 2014
CONSOLIDATED BALANCE SHEETS
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	1,000,000	1,000,000
Preferred Stock, shares issued	1	1
Preferred Stock, shares outstanding	1	1
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	1,000,000,000	1,000,000,000
Common Stock, shares issued	234,000,000	230,000,000
Common Stock, shares outstanding	234,000,000	230,000,000

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Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Mar. 28, 2015

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

Note 4. Accumulated Other Comprehensive (Loss) Income

The Company’s accumulated other comprehensive (loss) income consists of the accumulated net unrealized gains and losses on available-for-sale investments, foreign currency translation adjustments and defined benefit obligations.

For the nine months ended March 28, 2015, the changes in accumulated other comprehensive (loss) income by component net of tax were as follows (in millions):

	Unrealized losses on available-for- sale investments			Foreign currency translation adjustments			Defined benefit obligation, net of tax (1)			Total
Beginning balance as of June 28, 2014	$	(2.8	)	$	26.2		$	(12.3	)	$	11.1
Other comprehensive (loss) income before reclassification adjustments	(0.4		)	(63.0		)	—			(63.4		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			0.4			0.4
Net current-period other comprehensive (loss) income	(0.4		)	(63.0		)	0.4			(63.0		)
Ending balance as of March 28, 2015	$	(3.2	)	$	(36.8	)	$	(11.9	)	$	(51.9	)

(1) Amount represents the amortization of actuarial losses included as a component of Selling, general and administrative expense (“SG&A”) in the Consolidated Statements of Operations for the nine months ended March 28, 2015. There was no tax impact. Refer to “Note 14. Employee Defined Benefit Plans” for more details on the computation of net periodic cost for pension plans.

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Investments and Fair Value Measurements (Tables)

9 Months Ended

Mar. 28, 2015

Investments and Fair Value Measurements

Schedule of available-for-sale securities

As of March 28, 2015, the Company’s available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. treasuries	$	34.9	$	—	$	—		$	34.9
U.S. agencies	96.3		—		—			96.3
Municipal bonds and sovereign debt instruments	11.6		—		—			11.6
Asset-backed securities	75.3		—		(0.2		)	75.1
Corporate securities	348.4		0.1		(0.1		)	348.4
Total debt available-for-sale securities	$	566.5	$	0.1	$	(0.3	)	$	566.3

As of June 28, 2014, the Company’s available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. treasuries	$	36.8	$	—	$	—		$	36.8
U.S. agencies	70.0		—		—			70.0
Municipal bonds and sovereign debt instruments	16.8		—		—			16.8
Asset-backed securities	94.7		0.1		(0.2		)	94.6
Corporate securities	370.5		0.2		—			370.7
Total debt available-for-sale securities	$	588.8	$	0.3	$	(0.2	)	$	588.9

Schedule of contractual maturities of available-for-sale securities

As of March 28, 2015, contractual maturities of the Company’s debt securities classified as available-for-sale securities were as follows (in millions):

	Amortized Cost/Carrying Cost		Estimated Fair Value
Amounts maturing in less than 1 year	$	413.8	$	413.7
Amounts maturing in 1 - 5 years	151.7		151.8
Amounts maturing in more than 5 years	1.0		0.8
Total debt available-for-sale securities	$	566.5	$	566.3

Schedule of assets measured at fair value

Assets measured at fair value as of March 28, 2015 are summarized below (in millions):

	Fair Value measurement as of
	March 28, 2015
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Debt available-for-sale securities:
U.S. treasuries	$	34.9	$	34.9	$	—
U.S. agencies	96.3		—		96.3
Municipal bonds and sovereign debt instruments	11.6		—		11.6
Asset-backed securities	75.1		—		75.1
Corporate securities	348.4		—		348.4
Total debt available-for-sale securities	566.3		34.9		531.4
Money market funds	163.0		163.0		—
Trading securities	3.4		3.4		—
Total assets (1)	$	732.7	$	201.3	$	531.4

(1) $212.2 million in cash and cash equivalents, $489.7 million in short-term investments, $26.2 million in restricted cash, and $4.6 million in other non-current assets on the Company’s Consolidated Balance Sheets.

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Accumulated Other Comprehensive (Loss) Income (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Mar. 28, 2015
Changes in accumulated other comprehensive (loss) income by component
Beginning balance as of June 28, 2014	$ 11.1
Other comprehensive (loss) income before reclassification adjustments	(63.4)
Amounts reclassified from accumulated other comprehensive (loss) income	0.4
Net current-period other comprehensive (loss) income	(63.0)
Ending balance as of March 28, 2015	(51.9)
Tax impact of amortization of actuarial losses	0
Unrealized losses on available-for-sale investments
Changes in accumulated other comprehensive (loss) income by component
Beginning balance as of June 28, 2014	(2.8)
Other comprehensive (loss) income before reclassification adjustments	(0.4)
Net current-period other comprehensive (loss) income	(0.4)
Ending balance as of March 28, 2015	(3.2)
Foreign currency translation adjustments
Changes in accumulated other comprehensive (loss) income by component
Beginning balance as of June 28, 2014	26.2
Other comprehensive (loss) income before reclassification adjustments	(63.0)
Net current-period other comprehensive (loss) income	(63.0)
Ending balance as of March 28, 2015	(36.8)
Defined benefit obligation, net of tax
Changes in accumulated other comprehensive (loss) income by component
Beginning balance as of June 28, 2014	(12.3)
Amounts reclassified from accumulated other comprehensive (loss) income	0.4
Net current-period other comprehensive (loss) income	0.4
Ending balance as of March 28, 2015	$ (11.9)

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Employee Defined Benefit Plans

9 Months Ended

Mar. 28, 2015

Employee Defined Benefit Plans

Employee Defined Benefit Plans

Note 14. Employee Defined Benefit Plans

The Company sponsors significant qualified and non-qualified pension plans for certain past and present employees primarily in the United Kingdom (“U.K.”), Germany and Switzerland. The Company also is responsible for the non-pension post-retirement benefit obligation assumed from a past acquisition. Most of the plans have been closed to new participants and no additional service costs are being accrued, except for certain plans in Germany and Switzerland assumed in connection with acquisitions during fiscal 2010 and fiscal 2014. Benefits are generally based upon years of service and compensation or stated amounts for each year of service.

As of March 28, 2015, the U.K. plan and Switzerland plan were partially funded while the other plans were unfunded. The Company’s policy for funded plans is to make contributions equal to or greater than the requirements prescribed by law or regulation. For unfunded plans, the Company pays the post-retirement benefits when due. During the nine months ended March 28, 2015, the Company contributed $1.1 million to the U.K. and $0.4 million to the Switzerland plans. The funded plan assets consist primarily of managed investments.

The following table presents the components of the net periodic cost for the pension plans (in millions):

	Three Months Ended						Nine Months Ended
Pension Benefits	March 28, 2015			March 29, 2014			March 28, 2015			March 29, 2014
Service cost	$	0.1		$	0.2		$	0.4		$	0.4
Interest cost	0.9			1.2			2.9			3.6
Expected return on plan assets	(0.5		)	(0.4		)	(1.3		)	(1.2		)
Recognized net actuarial (gains)/losses	0.1			—			0.4			0.1
Net periodic benefit cost	$	0.6		$	1.0		$	2.4		$	2.9

Both the calculation of the projected benefit obligation and net periodic cost are based upon actuarial valuations. These valuations use participant-specific information such as salary, age, years of service, and assumptions about interest rates, pension increases and other factors. At a minimum, the Company evaluates these assumptions annually and makes changes as necessary.

The Company expects to incur cash outlays of approximately $4.4 million related to its defined benefit pension plans during fiscal 2015 to make current benefit payments and fund future obligations. As of March 28, 2015, approximately $4.7 million had been incurred. These payments have been estimated based on the same assumptions used to measure the Company’s projected benefit obligation at June 28, 2014.