10-Q 1 viav-20220402.htm 10-Q viav-20220402
0000912093false7/22022Q33.75P4Yhttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrentP3YP1Y00009120932021-07-042022-04-0200009120932022-04-30xbrli:shares0000912093us-gaap:ProductMember2022-01-022022-04-02iso4217:USD0000912093us-gaap:ProductMember2021-01-032021-04-030000912093us-gaap:ProductMember2021-07-042022-04-020000912093us-gaap:ProductMember2020-06-282021-04-030000912093us-gaap:ServiceMember2022-01-022022-04-020000912093us-gaap:ServiceMember2021-01-032021-04-030000912093us-gaap:ServiceMember2021-07-042022-04-020000912093us-gaap:ServiceMember2020-06-282021-04-0300009120932022-01-022022-04-0200009120932021-01-032021-04-0300009120932020-06-282021-04-03iso4217:USDxbrli:shares00009120932022-04-0200009120932021-07-030000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:SeniorNotesMember2022-04-02xbrli:pure0000912093viav:NoteHoldersMember2021-07-042022-04-020000912093viav:NoteHoldersMember2020-06-282021-04-030000912093viav:ThirdPartiesMember2021-07-042022-04-020000912093viav:ThirdPartiesMember2020-06-282021-04-0300009120932020-06-2700009120932021-04-030000912093us-gaap:CommonStockMember2022-01-010000912093us-gaap:AdditionalPaidInCapitalMember2022-01-010000912093us-gaap:RetainedEarningsMember2022-01-010000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-0100009120932022-01-010000912093us-gaap:RetainedEarningsMember2022-01-022022-04-020000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-022022-04-020000912093us-gaap:CommonStockMember2022-01-022022-04-020000912093us-gaap:AdditionalPaidInCapitalMember2022-01-022022-04-020000912093us-gaap:CommonStockMember2022-04-020000912093us-gaap:AdditionalPaidInCapitalMember2022-04-020000912093us-gaap:RetainedEarningsMember2022-04-020000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-020000912093us-gaap:CommonStockMember2021-01-020000912093us-gaap:AdditionalPaidInCapitalMember2021-01-020000912093us-gaap:RetainedEarningsMember2021-01-020000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-0200009120932021-01-020000912093us-gaap:RetainedEarningsMember2021-01-032021-04-030000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000912093us-gaap:CommonStockMember2021-01-032021-04-030000912093us-gaap:AdditionalPaidInCapitalMember2021-01-032021-04-030000912093us-gaap:CommonStockMember2021-04-030000912093us-gaap:AdditionalPaidInCapitalMember2021-04-030000912093us-gaap:RetainedEarningsMember2021-04-030000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-030000912093us-gaap:CommonStockMember2021-07-030000912093us-gaap:AdditionalPaidInCapitalMember2021-07-030000912093us-gaap:RetainedEarningsMember2021-07-030000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-030000912093us-gaap:RetainedEarningsMember2021-07-042022-04-020000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-042022-04-020000912093us-gaap:CommonStockMember2021-07-042022-04-020000912093us-gaap:AdditionalPaidInCapitalMember2021-07-042022-04-020000912093us-gaap:CommonStockMember2020-06-270000912093us-gaap:AdditionalPaidInCapitalMember2020-06-270000912093us-gaap:RetainedEarningsMember2020-06-270000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-270000912093us-gaap:RetainedEarningsMember2020-06-282021-04-030000912093us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-282021-04-030000912093us-gaap:CommonStockMember2020-06-282021-04-030000912093us-gaap:AdditionalPaidInCapitalMember2020-06-282021-04-030000912093us-gaap:AccountingStandardsUpdate202006Member2020-06-282021-07-030000912093srt:ScenarioPreviouslyReportedMember2021-07-030000912093us-gaap:AccountingStandardsUpdate202006Membersrt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember2021-07-030000912093srt:ScenarioPreviouslyReportedMember2021-01-032021-04-030000912093us-gaap:AccountingStandardsUpdate202006Membersrt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember2021-01-032021-04-030000912093srt:ScenarioPreviouslyReportedMember2020-06-282021-04-030000912093us-gaap:AccountingStandardsUpdate202006Membersrt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember2020-06-282021-04-030000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-04-020000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-04-020000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-07-042022-04-020000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-07-042022-04-020000912093us-gaap:RestrictedStockUnitsRSUMember2022-01-022022-04-020000912093us-gaap:RestrictedStockUnitsRSUMember2021-01-032021-04-030000912093us-gaap:RestrictedStockUnitsRSUMember2021-07-042022-04-020000912093us-gaap:RestrictedStockUnitsRSUMember2020-06-282021-04-030000912093us-gaap:ConvertibleDebtSecuritiesMember2022-01-022022-04-020000912093us-gaap:ConvertibleDebtSecuritiesMember2021-01-032021-04-030000912093us-gaap:ConvertibleDebtSecuritiesMember2021-07-042022-04-020000912093us-gaap:ConvertibleDebtSecuritiesMember2020-06-282021-04-030000912093us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-07-030000912093us-gaap:AccumulatedTranslationAdjustmentMember2021-07-030000912093us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-030000912093us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-07-042022-04-020000912093us-gaap:AccumulatedTranslationAdjustmentMember2021-07-042022-04-020000912093us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-042022-04-020000912093us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-020000912093us-gaap:AccumulatedTranslationAdjustmentMember2022-04-020000912093us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-020000912093viav:RPCPhotonicsInc.Member2018-09-302018-12-290000912093viav:RPCPhotonicsInc.Member2018-12-290000912093us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2021-07-042021-10-020000912093us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-03-292020-06-270000912093us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-06-270000912093us-gaap:DevelopedTechnologyRightsMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-03-292020-06-270000912093us-gaap:CustomerRelationshipsMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-03-292020-06-270000912093us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMemberviav:AcquiredDevelopedTechnologyAndCustomerRelationshipsMember2020-03-292020-06-270000912093viav:ContingentConsiderationMember2022-01-010000912093viav:ContingentConsiderationMember2021-01-020000912093viav:ContingentConsiderationMember2021-07-030000912093viav:ContingentConsiderationMember2020-06-270000912093viav:ContingentConsiderationMember2022-01-022022-04-020000912093viav:ContingentConsiderationMember2021-01-032021-04-030000912093viav:ContingentConsiderationMember2021-07-042022-04-020000912093viav:ContingentConsiderationMember2020-06-282021-04-030000912093viav:ContingentConsiderationMember2022-04-020000912093viav:ContingentConsiderationMember2021-04-0300009120932022-04-032022-04-020000912093us-gaap:ShortTermInvestmentsMember2022-04-020000912093us-gaap:DebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-04-020000912093us-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2022-04-020000912093us-gaap:EquitySecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-04-020000912093us-gaap:ShortTermInvestmentsMember2021-07-030000912093us-gaap:DebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2021-07-030000912093us-gaap:ShortTermInvestmentsMemberus-gaap:MoneyMarketFundsMember2021-07-030000912093us-gaap:EquitySecuritiesMemberus-gaap:ShortTermInvestmentsMember2021-07-030000912093us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-04-020000912093us-gaap:OtherCurrentLiabilitiesMember2022-04-020000912093us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-07-030000912093us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-07-042022-04-020000912093us-gaap:NondesignatedMemberus-gaap:LongMemberus-gaap:ForeignExchangeForwardMember2022-04-020000912093us-gaap:NondesignatedMemberus-gaap:LongMemberus-gaap:ForeignExchangeForwardMember2021-07-030000912093us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMemberus-gaap:ShortMember2022-04-020000912093us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMemberus-gaap:ShortMember2021-07-030000912093us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-01-022022-04-020000912093us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-01-032021-04-030000912093us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2020-06-282021-04-030000912093us-gaap:AssetBackedSecuritiesMember2022-04-020000912093us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-04-020000912093us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-04-020000912093us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-04-020000912093us-gaap:AssetBackedSecuritiesMember2021-07-030000912093us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-07-030000912093us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-07-030000912093us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-07-030000912093us-gaap:FairValueInputsLevel1Member2022-04-020000912093us-gaap:FairValueInputsLevel2Member2022-04-020000912093us-gaap:FairValueInputsLevel3Member2022-04-020000912093us-gaap:FairValueInputsLevel1Member2021-07-030000912093us-gaap:FairValueInputsLevel2Member2021-07-030000912093us-gaap:FairValueInputsLevel3Member2021-07-030000912093us-gaap:CashAndCashEquivalentsMember2022-04-020000912093viav:RestrictedCashMember2022-04-020000912093us-gaap:OtherNoncurrentAssetsMember2022-04-020000912093us-gaap:CashAndCashEquivalentsMember2021-07-030000912093viav:RestrictedCashMember2021-07-030000912093us-gaap:OtherNoncurrentAssetsMember2021-07-030000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMember2022-04-020000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2022-04-020000912093us-gaap:FairValueInputsLevel2Memberviav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMember2022-04-020000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2022-04-020000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMember2021-07-030000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2021-07-030000912093us-gaap:FairValueInputsLevel2Memberviav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMember2021-07-030000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2021-07-030000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2022-04-020000912093us-gaap:FairValueInputsLevel2Memberviav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-04-020000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2022-04-020000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-07-030000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2021-07-030000912093us-gaap:FairValueInputsLevel2Memberviav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-07-030000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2021-07-030000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2022-04-020000912093us-gaap:FairValueInputsLevel2Memberviav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-04-020000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2022-04-020000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-07-030000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2021-07-030000912093us-gaap:FairValueInputsLevel2Memberviav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-07-030000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2021-07-030000912093us-gaap:ConvertibleDebtMember2022-04-020000912093us-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2022-04-020000912093us-gaap:FairValueInputsLevel2Memberus-gaap:ConvertibleDebtMember2022-04-020000912093us-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2022-04-020000912093us-gaap:ConvertibleDebtMember2021-07-030000912093us-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel1Member2021-07-030000912093us-gaap:FairValueInputsLevel2Memberus-gaap:ConvertibleDebtMember2021-07-030000912093us-gaap:ConvertibleDebtMemberus-gaap:FairValueInputsLevel3Member2021-07-030000912093viav:NetworkEnablementMember2021-07-030000912093viav:ServiceEnablementMember2021-07-030000912093viav:OpticalSecurityAndPerformanceProductsSegmentMember2021-07-030000912093viav:NetworkEnablementMember2021-07-042022-04-020000912093viav:ServiceEnablementMember2021-07-042022-04-020000912093viav:OpticalSecurityAndPerformanceProductsSegmentMember2021-07-042022-04-020000912093viav:NetworkEnablementMember2022-04-020000912093viav:ServiceEnablementMember2022-04-020000912093viav:OpticalSecurityAndPerformanceProductsSegmentMember2022-04-020000912093us-gaap:DevelopedTechnologyRightsMember2022-04-020000912093us-gaap:CustomerRelationshipsMember2022-04-020000912093us-gaap:OtherIntangibleAssetsMember2022-04-020000912093us-gaap:DevelopedTechnologyRightsMember2021-07-030000912093us-gaap:CustomerRelationshipsMember2021-07-030000912093us-gaap:OtherIntangibleAssetsMember2021-07-030000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:SeniorNotesMember2021-07-030000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:SeniorNotesMember2021-09-290000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:SeniorNotesMember2021-09-292021-09-290000912093viav:SeniorThreePointSeventyFivePercentNotesMemberus-gaap:SeniorNotesMember2022-04-022022-04-020000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2021-12-302021-12-300000912093us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMember2021-12-302021-12-300000912093us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MaximumMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMemberviav:SterlingOvernightInterbankAverageRateSONIAMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberviav:SterlingOvernightInterbankAverageRateSONIAMembersrt:MaximumMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMemberviav:EuroInterbankOfferedRateMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MaximumMemberviav:EuroInterbankOfferedRateMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMemberviav:CanadianDollarOfferedRateMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MaximumMemberviav:CanadianDollarOfferedRateMember2021-12-302021-12-300000912093us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMembercurrency:CADviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LineOfCreditMember2021-12-302021-12-300000912093us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMembercurrency:CADviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MaximumMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-12-302021-12-300000912093us-gaap:RevolvingCreditFacilityMemberviav:SeniorSecuredAssetBasedRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-04-020000912093us-gaap:RevolvingCreditFacilityMemberviav:WellsFargoMemberus-gaap:LineOfCreditMember2021-07-042021-10-020000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2018-05-290000912093viav:ExchangeTransactionMemberviav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2018-05-292018-05-290000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2018-05-292018-05-290000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2017-03-030000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2017-03-220000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2017-03-032017-03-220000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-04-042021-07-03viav:day0000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-09-022021-09-020000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-09-022021-09-0200009120932021-09-022021-09-020000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-11-172021-11-170000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2021-11-222021-11-2200009120932021-11-172021-11-170000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-03-022022-03-020000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-03-022022-03-0200009120932022-03-022022-03-020000912093viav:SeniorOnePointSevenFivePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-03-020000912093viav:SeniorOnePercentConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-03-020000912093viav:A2021RepurchasePlanMemberus-gaap:CommonStockMember2021-09-300000912093viav:A2021RepurchasePlanMemberus-gaap:CommonStockMember2022-01-022022-04-020000912093viav:A2021RepurchasePlanMemberus-gaap:CommonStockMember2021-07-042022-04-020000912093us-gaap:CommonStockMemberviav:A2019RepurchasePlanMember2019-09-300000912093us-gaap:CommonStockMemberviav:A2019RepurchasePlanMember2022-01-022022-04-020000912093us-gaap:CommonStockMemberviav:A2019RepurchasePlanMember2021-07-042022-04-020000912093us-gaap:CommonStockMemberviav:A2019RepurchasePlanMember2022-04-020000912093us-gaap:RestrictedStockUnitsRSUMembersrt:MinimumMember2021-07-042022-04-020000912093us-gaap:RestrictedStockUnitsRSUMembersrt:MaximumMember2021-07-042022-04-020000912093srt:MinimumMemberus-gaap:PerformanceSharesMember2021-07-042022-04-020000912093srt:MaximumMemberus-gaap:PerformanceSharesMember2021-07-042022-04-020000912093us-gaap:RestrictedStockUnitsRSUMember2021-07-042022-04-020000912093us-gaap:RestrictedStockUnitsRSUMember2020-06-282021-04-030000912093viav:RestrictedStockUnitsWithTimeBasedConditionsMember2021-07-042022-04-020000912093viav:RestrictedStockUnitswithMarketandPerformanceConditionsMember2021-07-042022-04-020000912093viav:RestrictedStockUnitswithMarketandPerformanceConditionsMember2020-06-282021-04-030000912093viav:RestrictedStockUnitswithPerformanceConditionsOverTargetMember2020-06-282021-04-030000912093viav:FullValueAwardsMember2022-04-020000912093us-gaap:CostOfSalesMember2022-01-022022-04-020000912093us-gaap:CostOfSalesMember2021-01-032021-04-030000912093us-gaap:CostOfSalesMember2021-07-042022-04-020000912093us-gaap:CostOfSalesMember2020-06-282021-04-030000912093us-gaap:ResearchAndDevelopmentExpenseMember2022-01-022022-04-020000912093us-gaap:ResearchAndDevelopmentExpenseMember2021-01-032021-04-030000912093us-gaap:ResearchAndDevelopmentExpenseMember2021-07-042022-04-020000912093us-gaap:ResearchAndDevelopmentExpenseMember2020-06-282021-04-030000912093us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-022022-04-020000912093us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-032021-04-030000912093us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-042022-04-020000912093us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-06-282021-04-030000912093country:GB2021-07-042022-04-020000912093country:DE2021-07-042022-04-020000912093viav:CaseRelatedToAmendmentOfPensionForForeignSubsidiaryMembersrt:MinimumMemberus-gaap:JudicialRulingMember2016-06-30iso4217:GBP0000912093viav:CaseRelatedToAmendmentOfPensionForForeignSubsidiaryMembersrt:MaximumMemberus-gaap:JudicialRulingMember2016-06-300000912093viav:CaseRelatedToAmendmentOfPensionForForeignSubsidiaryMembersrt:MinimumMemberus-gaap:JudicialRulingMember2016-07-020000912093viav:CaseRelatedToAmendmentOfPensionForForeignSubsidiaryMemberus-gaap:JudicialRulingMember2022-04-020000912093us-gaap:PerformanceGuaranteeMember2022-04-02viav:segment0000912093viav:NetworkEnablementMemberus-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2022-01-022022-04-020000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2022-01-022022-04-020000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2022-01-022022-04-020000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2022-01-022022-04-020000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ProductMember2022-01-022022-04-020000912093viav:NetworkEnablementMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2022-01-022022-04-020000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2022-01-022022-04-020000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2022-01-022022-04-020000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2022-01-022022-04-020000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ServiceMember2022-01-022022-04-020000912093viav:NetworkEnablementMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2022-01-022022-04-020000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2022-01-022022-04-020000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2022-01-022022-04-020000912093us-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2022-01-022022-04-020000912093us-gaap:MaterialReconcilingItemsMember2022-01-022022-04-020000912093viav:NetworkEnablementMemberus-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-01-032021-04-030000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2021-01-032021-04-030000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-01-032021-04-030000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2021-01-032021-04-030000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ProductMember2021-01-032021-04-030000912093viav:NetworkEnablementMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-01-032021-04-030000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2021-01-032021-04-030000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-01-032021-04-030000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2021-01-032021-04-030000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ServiceMember2021-01-032021-04-030000912093viav:NetworkEnablementMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-01-032021-04-030000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2021-01-032021-04-030000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-01-032021-04-030000912093us-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2021-01-032021-04-030000912093us-gaap:MaterialReconcilingItemsMember2021-01-032021-04-030000912093us-gaap:OperatingSegmentsMemberviav:GrossProfitMember2022-01-022022-04-020000912093us-gaap:OperatingSegmentsMemberviav:GrossProfitMember2021-01-032021-04-030000912093us-gaap:MaterialReconcilingItemsMemberviav:GrossProfitMember2022-01-022022-04-020000912093us-gaap:MaterialReconcilingItemsMemberviav:GrossProfitMember2021-01-032021-04-030000912093viav:GrossProfitMember2022-01-022022-04-020000912093viav:GrossProfitMember2021-01-032021-04-030000912093us-gaap:OperatingIncomeLossMemberus-gaap:OperatingSegmentsMember2022-01-022022-04-020000912093us-gaap:OperatingIncomeLossMemberus-gaap:OperatingSegmentsMember2021-01-032021-04-030000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:OperatingIncomeLossMember2022-01-022022-04-020000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:OperatingIncomeLossMember2021-01-032021-04-030000912093us-gaap:OperatingIncomeLossMember2022-01-022022-04-020000912093us-gaap:OperatingIncomeLossMember2021-01-032021-04-030000912093viav:NetworkEnablementMemberus-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-07-042022-04-020000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2021-07-042022-04-020000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-07-042022-04-020000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2021-07-042022-04-020000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ProductMember2021-07-042022-04-020000912093viav:NetworkEnablementMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-07-042022-04-020000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2021-07-042022-04-020000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-07-042022-04-020000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2021-07-042022-04-020000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ServiceMember2021-07-042022-04-020000912093viav:NetworkEnablementMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-07-042022-04-020000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2021-07-042022-04-020000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2021-07-042022-04-020000912093us-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2021-07-042022-04-020000912093us-gaap:MaterialReconcilingItemsMember2021-07-042022-04-020000912093viav:NetworkEnablementMemberus-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2020-06-282021-04-030000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2020-06-282021-04-030000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2020-06-282021-04-030000912093us-gaap:ProductMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2020-06-282021-04-030000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ProductMember2020-06-282021-04-030000912093viav:NetworkEnablementMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2020-06-282021-04-030000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2020-06-282021-04-030000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2020-06-282021-04-030000912093us-gaap:ServiceMemberus-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2020-06-282021-04-030000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:ServiceMember2020-06-282021-04-030000912093viav:NetworkEnablementMemberus-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2020-06-282021-04-030000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMemberviav:ServiceEnablementMember2020-06-282021-04-030000912093us-gaap:OperatingSegmentsMemberviav:NetworkAndServiceEnablementSegmentMember2020-06-282021-04-030000912093us-gaap:OperatingSegmentsMemberviav:OpticalSecurityAndPerformanceProductsSegmentMember2020-06-282021-04-030000912093us-gaap:MaterialReconcilingItemsMember2020-06-282021-04-030000912093us-gaap:OperatingSegmentsMemberviav:GrossProfitMember2021-07-042022-04-020000912093us-gaap:OperatingSegmentsMemberviav:GrossProfitMember2020-06-282021-04-030000912093us-gaap:MaterialReconcilingItemsMemberviav:GrossProfitMember2021-07-042022-04-020000912093us-gaap:MaterialReconcilingItemsMemberviav:GrossProfitMember2020-06-282021-04-030000912093viav:GrossProfitMember2021-07-042022-04-020000912093viav:GrossProfitMember2020-06-282021-04-030000912093us-gaap:OperatingIncomeLossMemberus-gaap:OperatingSegmentsMember2021-07-042022-04-020000912093us-gaap:OperatingIncomeLossMemberus-gaap:OperatingSegmentsMember2020-06-282021-04-030000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:OperatingIncomeLossMember2021-07-042022-04-020000912093us-gaap:MaterialReconcilingItemsMemberus-gaap:OperatingIncomeLossMember2020-06-282021-04-03viav:region0000912093country:USus-gaap:ProductMember2022-01-022022-04-020000912093country:USus-gaap:ServiceMember2022-01-022022-04-020000912093country:US2022-01-022022-04-020000912093country:USus-gaap:ProductMember2021-01-032021-04-030000912093country:USus-gaap:ServiceMember2021-01-032021-04-030000912093country:US2021-01-032021-04-030000912093us-gaap:ProductMemberviav:OtherAmericasMember2022-01-022022-04-020000912093viav:OtherAmericasMemberus-gaap:ServiceMember2022-01-022022-04-020000912093viav:OtherAmericasMember2022-01-022022-04-020000912093us-gaap:ProductMemberviav:OtherAmericasMember2021-01-032021-04-030000912093viav:OtherAmericasMemberus-gaap:ServiceMember2021-01-032021-04-030000912093viav:OtherAmericasMember2021-01-032021-04-030000912093us-gaap:ProductMembersrt:AmericasMember2022-01-022022-04-020000912093us-gaap:ServiceMembersrt:AmericasMember2022-01-022022-04-020000912093srt:AmericasMember2022-01-022022-04-020000912093us-gaap:ProductMembersrt:AmericasMember2021-01-032021-04-030000912093us-gaap:ServiceMembersrt:AmericasMember2021-01-032021-04-030000912093srt:AmericasMember2021-01-032021-04-030000912093us-gaap:ProductMembercountry:CN2022-01-022022-04-020000912093country:CNus-gaap:ServiceMember2022-01-022022-04-020000912093country:CN2022-01-022022-04-020000912093us-gaap:ProductMembercountry:CN2021-01-032021-04-030000912093country:CNus-gaap:ServiceMember2021-01-032021-04-030000912093country:CN2021-01-032021-04-030000912093us-gaap:ProductMemberviav:OtherAsiaPacificMember2022-01-022022-04-020000912093viav:OtherAsiaPacificMemberus-gaap:ServiceMember2022-01-022022-04-020000912093viav:OtherAsiaPacificMember2022-01-022022-04-020000912093us-gaap:ProductMemberviav:OtherAsiaPacificMember2021-01-032021-04-030000912093viav:OtherAsiaPacificMemberus-gaap:ServiceMember2021-01-032021-04-030000912093viav:OtherAsiaPacificMember2021-01-032021-04-030000912093us-gaap:ProductMembersrt:AsiaPacificMember2022-01-022022-04-020000912093us-gaap:ServiceMembersrt:AsiaPacificMember2022-01-022022-04-020000912093srt:AsiaPacificMember2022-01-022022-04-020000912093us-gaap:ProductMembersrt:AsiaPacificMember2021-01-032021-04-030000912093us-gaap:ServiceMembersrt:AsiaPacificMember2021-01-032021-04-030000912093srt:AsiaPacificMember2021-01-032021-04-030000912093country:CHus-gaap:ProductMember2022-01-022022-04-020000912093country:CHus-gaap:ServiceMember2022-01-022022-04-020000912093country:CH2022-01-022022-04-020000912093country:CHus-gaap:ProductMember2021-01-032021-04-030000912093country:CHus-gaap:ServiceMember2021-01-032021-04-030000912093country:CH2021-01-032021-04-030000912093us-gaap:ProductMemberviav:OtherEMEAMember2022-01-022022-04-020000912093us-gaap:ServiceMemberviav:OtherEMEAMember2022-01-022022-04-020000912093viav:OtherEMEAMember2022-01-022022-04-020000912093us-gaap:ProductMemberviav:OtherEMEAMember2021-01-032021-04-030000912093us-gaap:ServiceMemberviav:OtherEMEAMember2021-01-032021-04-030000912093viav:OtherEMEAMember2021-01-032021-04-030000912093us-gaap:ProductMemberus-gaap:EMEAMember2022-01-022022-04-020000912093us-gaap:EMEAMemberus-gaap:ServiceMember2022-01-022022-04-020000912093us-gaap:EMEAMember2022-01-022022-04-020000912093us-gaap:ProductMemberus-gaap:EMEAMember2021-01-032021-04-030000912093us-gaap:EMEAMemberus-gaap:ServiceMember2021-01-032021-04-030000912093us-gaap:EMEAMember2021-01-032021-04-030000912093country:USus-gaap:ProductMember2021-07-042022-04-020000912093country:USus-gaap:ServiceMember2021-07-042022-04-020000912093country:US2021-07-042022-04-020000912093country:USus-gaap:ProductMember2020-06-282021-04-030000912093country:USus-gaap:ServiceMember2020-06-282021-04-030000912093country:US2020-06-282021-04-030000912093us-gaap:ProductMemberviav:OtherAmericasMember2021-07-042022-04-020000912093viav:OtherAmericasMemberus-gaap:ServiceMember2021-07-042022-04-020000912093viav:OtherAmericasMember2021-07-042022-04-020000912093us-gaap:ProductMemberviav:OtherAmericasMember2020-06-282021-04-030000912093viav:OtherAmericasMemberus-gaap:ServiceMember2020-06-282021-04-030000912093viav:OtherAmericasMember2020-06-282021-04-030000912093us-gaap:ProductMembersrt:AmericasMember2021-07-042022-04-020000912093us-gaap:ServiceMembersrt:AmericasMember2021-07-042022-04-020000912093srt:AmericasMember2021-07-042022-04-020000912093us-gaap:ProductMembersrt:AmericasMember2020-06-282021-04-030000912093us-gaap:ServiceMembersrt:AmericasMember2020-06-282021-04-030000912093srt:AmericasMember2020-06-282021-04-030000912093us-gaap:ProductMembercountry:CN2021-07-042022-04-020000912093country:CNus-gaap:ServiceMember2021-07-042022-04-020000912093country:CN2021-07-042022-04-020000912093us-gaap:ProductMembercountry:CN2020-06-282021-04-030000912093country:CNus-gaap:ServiceMember2020-06-282021-04-030000912093country:CN2020-06-282021-04-030000912093us-gaap:ProductMemberviav:OtherAsiaPacificMember2021-07-042022-04-020000912093viav:OtherAsiaPacificMemberus-gaap:ServiceMember2021-07-042022-04-020000912093viav:OtherAsiaPacificMember2021-07-042022-04-020000912093us-gaap:ProductMemberviav:OtherAsiaPacificMember2020-06-282021-04-030000912093viav:OtherAsiaPacificMemberus-gaap:ServiceMember2020-06-282021-04-030000912093viav:OtherAsiaPacificMember2020-06-282021-04-030000912093us-gaap:ProductMembersrt:AsiaPacificMember2021-07-042022-04-020000912093us-gaap:ServiceMembersrt:AsiaPacificMember2021-07-042022-04-020000912093srt:AsiaPacificMember2021-07-042022-04-020000912093us-gaap:ProductMembersrt:AsiaPacificMember2020-06-282021-04-030000912093us-gaap:ServiceMembersrt:AsiaPacificMember2020-06-282021-04-030000912093srt:AsiaPacificMember2020-06-282021-04-030000912093country:CHus-gaap:ProductMember2021-07-042022-04-020000912093country:CHus-gaap:ServiceMember2021-07-042022-04-020000912093country:CH2021-07-042022-04-020000912093country:CHus-gaap:ProductMember2020-06-282021-04-030000912093country:CHus-gaap:ServiceMember2020-06-282021-04-030000912093country:CH2020-06-282021-04-030000912093us-gaap:ProductMemberviav:OtherEMEAMember2021-07-042022-04-020000912093us-gaap:ServiceMemberviav:OtherEMEAMember2021-07-042022-04-020000912093viav:OtherEMEAMember2021-07-042022-04-020000912093us-gaap:ProductMemberviav:OtherEMEAMember2020-06-282021-04-030000912093us-gaap:ServiceMemberviav:OtherEMEAMember2020-06-282021-04-030000912093viav:OtherEMEAMember2020-06-282021-04-030000912093us-gaap:ProductMemberus-gaap:EMEAMember2021-07-042022-04-020000912093us-gaap:EMEAMemberus-gaap:ServiceMember2021-07-042022-04-020000912093us-gaap:EMEAMember2021-07-042022-04-020000912093us-gaap:ProductMemberus-gaap:EMEAMember2020-06-282021-04-030000912093us-gaap:EMEAMemberus-gaap:ServiceMember2020-06-282021-04-030000912093us-gaap:EMEAMember2020-06-282021-04-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 02, 2022
 OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period fromto

Commission File Number 000-22874
Viavi Solutions Inc.
(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)

7047 E Greenway Pkwy Suite 250, Scottsdale, Arizona 85254
(Address of principal executive offices including Zip code)

(408) 404-3600
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of the exchange on which registered
Common Stock, par value of $0.001 per share
VIAV
The Nasdaq Stock Market LLC

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   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 

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

Large accelerated filerAccelerated filerNon-accelerated filer
(Do not check if a smaller reporting company)
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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

As of April 30, 2022, the Registrant had 227,830,943 shares of common stock outstanding.


TABLE OF CONTENTSPage

1


PART I—FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
VIAVI SOLUTIONS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
 Three Months EndedNine Months Ended
 April 2, 2022April 3, 2021April 2, 2022April 3, 2021
Revenues:
Product revenue$275.8 $266.6 $842.3 $776.6 
Service revenue39.7 36.8 114.8 111.4 
Total net revenue315.5 303.4 957.1 888.0 
Cost of revenues:
Product cost of revenue104.0 98.1 311.0 287.8 
Service cost of revenue17.2 15.0 51.0 43.8 
Amortization of acquired technologies7.4 8.3 22.7 24.9 
Total cost of revenues128.6 121.4 384.7 356.5 
Gross profit186.9 182.0 572.4 531.5 
Operating expenses:
Research and development54.9 52.1 159.0 150.9 
Selling, general and administrative89.0 86.1 269.0 247.0 
Amortization of other intangibles2.2 8.3 7.5 24.9 
Restructuring and related benefits (0.4)(0.1)(0.8)
Total operating expenses146.1 146.1 435.4 422.0 
Income from operations40.8 35.9 137.0 109.5 
Loss on convertible note settlement (Note 11)(6.4) (98.7) 
Interest income and other income (loss), net0.6 (0.9)3.10.8 
Interest expense(6.4)(3.6)(17.1)(10.8)
Income before income taxes28.6 31.4 24.3 99.5 
Provision for income taxes9.4 14.2 25.3 35.3 
Net income (loss)$19.2 $17.2 $(1.0)$64.2 
Net income (loss) per share:
Basic$0.08 $0.08 $ $0.28 
Diluted$0.08 $0.07 $ $0.27 
Shares used in per-share calculations:
Basic229.2 228.7 232.1 228.8 
Diluted236.8 240.2 232.1 234.4 
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
2

VIAVI SOLUTIONS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(unaudited)
Three Months EndedNine Months Ended
April 2, 2022April 3, 2021April 2, 2022April 3, 2021
Net income (loss)$19.2 $17.2 $(1.0)$64.2 
Other comprehensive income (loss):
Net change in cumulative translation adjustment, net of tax(12.8)(4.9)(26.5)57.1 
Unrealized holding gain arising during period  0.1  
Amortization of actuarial income0.8 0.8 2.3 2.3 
Net change in accumulated other comprehensive income (loss)(12.0)(4.1)(24.1)59.4 
Comprehensive income (loss)$7.2 $13.1 $(25.1)$123.6 

The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.

3

VIAVI SOLUTIONS INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except share and par value data)
(unaudited)
April 2, 2022July 3, 2021
ASSETS 
Current assets:  
Cash and cash equivalents$589.8 $697.8 
Short-term investments1.6 1.6 
Restricted cash4.6 4.3 
Accounts receivable, net269.3 256.5 
Inventories, net113.9 94.9 
Prepayments and other current assets64.8 57.0 
Total current assets1,044.0 1,112.1 
Property, plant and equipment, net221.2 196.0 
Goodwill, net388.9 396.5 
Intangibles, net58.2 88.0 
Deferred income taxes101.7 109.3 
Other non-current assets64.0 59.5 
Total assets$1,878.0 $1,961.4 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$58.3 $63.2 
Accrued payroll and related expenses57.7 76.0 
Deferred revenue78.1 69.7 
Accrued expenses30.2 24.8 
Short-term debt (Note11)
 456.6 
Other current liabilities35.4 57.1 
Total current liabilities259.7 747.4 
Long-term debt706.4 224.1 
Other non-current liabilities202.0 226.0 
Stockholders’ equity:
Common stock, $0.001 par value; 1 billion shares authorized; 228 million shares issued and outstanding at April 2, 2022 and July 3, 2021,
0.2 0.2 
Additional paid-in capital70,360.9 70,183.2 
Accumulated deficit(69,529.9)(69,322.3)
Accumulated other comprehensive loss(121.3)(97.2)
Total stockholders’ equity709.9 763.9 
Total liabilities and stockholders’ equity$1,878.0 $1,961.4 
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
4

VIAVI SOLUTIONS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Nine Months Ended
April 2, 2022April 3, 2021
OPERATING ACTIVITIES:
Net (loss) income$(1.0)$64.2 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation expense30.1 26.8 
Amortization of acquired technologies and other intangibles30.2 49.8 
Stock-based compensation39.7 33.4 
Loss on convertible note settlement98.7  
Amortization of debt issuance costs2.2 1.5 
Other2.0 (1.6)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(19.2)(21.0)
Inventories(26.5)(8.1)
Other current and non-currents assets(2.5)16.2 
Accounts payable(4.9) 
Income taxes payable(27.5)13.9 
Deferred revenue, current and non-current9.8 8.8 
Deferred taxes, net(10.8)(3.9)
Accrued payroll and related expenses(16.9)8.6 
Accrued expenses and other current and non-current liabilities1.1 (7.9)
Net cash provided by operating activities$104.5 $180.7 
INVESTING ACTIVITIES:
Capital expenditures$(53.4)$(26.7)
Proceeds from the sale of assets3.4 2.6 
Acquisitions, net of cash hold back(1.2)(0.7)
Net cash used in investing activities$(51.2)$(24.8)
FINANCING ACTIVITIES:
Proceeds from issuance of 3.75% senior notes
$400.0 $ 
Payment of debt issuance costs(10.2)(0.1)
Repurchase and retirement of common stock(207.0)(31.1)
Withholding tax payment on vesting of restricted stock awards(12.5)(14.8)
Cash paid to note holders in convertible note settlement(320.2) 
Cash paid to third parties in convertible note settlement(4.1) 
Payment of financing obligations(0.1)(1.0)
Proceeds from employee stock purchase plan7.8 6.6 
Proceeds from revolving credit facility150.0  
Repayment of revolving credit facility(150.0) 
Payment of acquisition related holdback(0.9) 
Payment of acquisition related contingent consideration(4.1) 
Payment of debt (2.8)
Net cash used in financing activities$(151.3)$(43.2)
Effect of exchange rates on cash, cash equivalents and restricted cash$(8.9)$21.9 
Net (decrease) increase in cash, cash equivalents and restricted cash(106.9)134.6 
Cash, cash equivalents and restricted cash at the beginning of the period (1)
708.4 547.4 
Cash, cash equivalents and restricted cash at the end of the period (2)
$601.5 $682.0 
(1)    These amounts include both current and non-current balances of restricted cash totaling $10.6 million and $8.4 million as of July 3, 2021 and June 27, 2020, respectively.
(2)    These amounts include both current and non-current balances of restricted cash totaling $11.7 million and $9.8 million as of April 2, 2022 and April 3, 2021, respectively.
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
5

VIAVI SOLUTIONS INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in millions)
(unaudited)
Three Months Ended April 2, 2022
Common Stock
SharesAmountAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive LossTotal
Balance at January 1, 2022232.5 $0.2 $70,354.3 $(69,470.4)$(109.3)$774.8 
Net income— — — 19.2 — 19.2 
Other comprehensive loss— — — — (12.0)(12.0)
Shares issued under employee stock plans, net of tax0.4 — 2.7 — — 2.7 
Stock-based compensation— — 12.8 — — 12.8 
Repurchase of common stock(4.7)— — (78.7)— (78.7)
Convertible note settlement (Note 11)— — (8.9)— (8.9)
Balance at April 2, 2022228.2 $0.2 $70,360.9 $(69,529.9)$(121.3)$709.9 

Three Months Ended April 3, 2021
Common Stock
Shares
Amount
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Total
Balance at January 2, 2021228.5 $0.2 $70,159.8 $(69,324.0)$(102.4)$733.6 
Net income— — — 17.2 — 17.2 
Other comprehensive loss— — — — (4.1)(4.1)
Shares issued under employee stock plans, net of tax0.6 —  — —  
Stock-based compensation— — 11.0 — — 11.0 
Repurchase of common stock(0.5)— — (7.9)— (7.9)
Balance at April 3, 2021228.6 $0.2 $70,170.8 $(69,314.7)$(106.5)$749.8 
Nine Months Ended April 2, 2022
Common Stock
Shares
Amount
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Total
Balance at July 3, 2021228.3 $0.2 $70,183.2 $(69,322.3)$(97.2)$763.9 
Net loss— — — (1.0)— (1.0)
Other comprehensive loss— — — — (24.1)(24.1)
Shares issued under employee stock plans, net of tax2.0 — (4.5)— — (4.5)
Stock-based compensation— — 39.4 — — 39.4 
Repurchase of common stock(12.7)— — (206.6)— (206.6)
Convertible note settlement (Note 11)10.6 — 142.8 — 142.8 
Balance at April 2, 2022228.2 $0.2 $70,360.9 $(69,529.9)$(121.3)$709.9 
6

Nine Months Ended April 3, 2021
Common Stock
Shares
Amount
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Total
Balance at June 27, 2020228.3 $0.2 $70,146.1 $(69,347.2)$(165.9)$633.2 
Net income— — — 64.2 — 64.2 
Other comprehensive income— — — — 59.4 59.4 
Shares issued under employee stock plans, net of tax2.6 — (8.7)— — (8.7)
Stock-based compensation— — 33.4 — — 33.4 
Repurchase of common stock(2.3)— — (31.7)— (31.7)
Balance at April 3, 2021228.6 $0.2 $70,170.8 $(69,314.7)$(106.5)$749.8 

The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
7


VIAVI SOLUTIONS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Basis of Presentation
The financial information for Viavi Solutions Inc. (VIAVI also referred to as the Company) for the three and nine months ended April 2, 2022 and April 3, 2021 is unaudited, and includes all normal and recurring adjustments the Company’s management considers necessary for a fair statement of the financial information set forth herein. The accompanying consolidated financial statements are presented 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 consolidated 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 July 3, 2021.
Other than the adoption of Accounting Standards Update (ASU) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity and ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (refer to “Note 2. Recently Issued Accounting Pronouncements” for more detail), there have been no material changes to the Company’s accounting policies during the three and nine months ended April 2, 2022 as compared to the significant accounting policies presented in “Note 1. Basis of Presentation” of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report for the year ended July 3, 2021 on Form 10-K, filed with the SEC on August 23, 2021.
The Consolidated Balance Sheet as of July 3, 2021 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 April 2, 2022 and April 3, 2021 may not be indicative of results for the fiscal year ending July 2, 2022 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 2022 is a 52-week year ending on July 2, 2022. The Company’s fiscal 2021 was a 53-week year ending on July 3, 2021. The Company’s first quarter of fiscal year 2021 was a 14 week quarter compared to the standard 13 week quarters.
Principles of Consolidation
The consolidated financial statements 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 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 revenues and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and assumptions about future periods that are believed to be reasonable based on available information. The Company’s reported financial positions 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 readily available current information.
8


VIAVI SOLUTIONS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
A novel strain of coronavirus (COVID-19) declared an international pandemic by the World Health Organization (WHO) in March 2020 continues to have a global impact more than two years since it was first identified in Wuhan, China. The worldwide spread of the COVID-19 virus resulted in a global slowdown of economic activity which could continue to impact demand for a broad variety of goods and services, including from the Company’s customers, while also continuing to disrupt sales channels and marketing activities for an unknown period of time. New and potentially more contagious variants of the virus have emerged over the course of the pandemic, along with a surge in cases in several regions across the globe, including Europe and Asia, resulting in renewed shutdown, mandatory quarantines and shelter in place orders in certain regions. These events have led, at times, to slowdowns in shipping and commercial activities. While rollout of several vaccines commenced in December 2020, the pace of the global rollout has been slow and the demand for vaccine outpaces available supply, particularly in developing nations. As economies recover, there are shipping and logistics challenges and continued supply chain constraints, shortages and delays, along with inflationary pricing pressures. Governmental vaccine mandates and mandated quarantines could lead to attrition and operational challenges. While the Company expects that all of this could have a negative impact to its sales and its results of operations, the Company is not aware of any specific event or circumstances that would require an update to the estimates or judgments or a revision of the carrying value of assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information becomes available. Actual results may differ materially from these estimates, assumptions or conditions.
Note 2. Recently Issued Accounting Pronouncements
Recent Accounting Pronouncements Adopted
In August 2018, the FASB issued ASU 2018-14 Defined Benefit Plans (Topic 715-20) - Changes to the Disclosure Requirements for Defined Benefit Plans, to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.
In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, by removing specific exceptions to the general principles in Topic 740, Income Taxes and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The Company adopted this guidance in the first quarter of fiscal 2022. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.
In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments with characteristics of liability and equity. This new guidance removes separation models for certain convertible debt instruments which will now be accounted for as a single liability measured at amortized cost. In addition, the interest expense recognized for these instruments will typically be closer to the coupon interest rate due to the removal of the separation model’s non-cash discount amortization. ASU 2020-06 is effective for the Company in the first quarter of fiscal 2023, with early adoption permitted for the first quarter of fiscal 2022. Adoption of the new guidance can either be on a modified retrospective or full retrospective method.
The Company adopted ASU 2020-06 effective the first quarter of fiscal 2022, on the full retrospective basis. The elimination of the separation model for the convertible debt instruments reclassified the equity components of the Company’s convertible notes previously in Additional paid-in capital to Long-term debt. Consequently, the temporary equity balance for the Senior Convertible Notes as of July 3, 2021 was eliminated. In addition, interest expense was reduced and net income was increased by $21.4 million for the fiscal year ended July 3, 2021. The adoption had no impact on total cash provided by (used in) operating, investing or financing activities in the Consolidated Statements of Cash Flows.
9


VIAVI SOLUTIONS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table presents the impact of the standard adoption to select line items of the Company’s Consolidated Balance Sheet as of July 3, 2021 (in millions):
July 3, 2021
As ReportedAdjustmentAs Adjusted
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term debt$414.2 $42.4 $456.6 
Long-term debt209.8 14.3 224.1 
Mezzanine equity - convertible notes45.8 (45.8) 
Additional paid-in capital70,265.5 (82.3)70,183.2 
Accumulated deficit$(69,393.7)$71.4 $(69,322.3)
The following table presents the impact of the standard adoption to select line items of the Company’s Consolidated Statement of Operations for the three and nine months ended April 3, 2021 (in millions, except per-share data):
Three Months Ended April 3, 2021
As ReportedAdjustmentAs Adjusted
Interest Expense$(9.0)$5.4 $(3.6)
Net income$11.8 $5.4 $17.2 
Net income per share:
Basic$0.05 $0.03 $0.08 
Diluted$0.05 $0.02 $0.07 
Shares used in per-share calculation:
Basic228.7 228.7
Diluted240.2 240.2
Nine Months Ended April 3, 2021
As ReportedAdjustmentAs Adjusted
Interest Expense$(27.0)$16.2 $(10.8)
Net income$48.0 $16.2 $64.2 
Net income per share:
Basic$0.21 $0.07 $0.28 
Diluted$0.21 $0.06 $0.27 
Shares used in per-share calculation:
Basic228.8 228.8
Diluted233.80.6 234.4

10


VIAVI SOLUTIONS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with ASC 606 as if it had originated the contracts. This guidance is effective for the Company in first quarter of fiscal year 2024 and early adoption is permitted. The Company elected to early adopt this guidance in the second quarter of fiscal 2022 on a retrospective basis to the beginning of the fiscal year. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.
Recent Accounting Pronouncements Not Yet Adopted
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance to increase the transparency of government assistance including the disclosure of the types of assistance, an entity's accounting for the assistance, and the effect of the assistance on an entity's financial statements. This guidance is effective for the Company in the first quarter of fiscal 2023 with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

In March 2022, the FASB issued ASU 2022-01 Derivatives and Hedging (Topic 815), which clarifies guidance on fair value hedge accounting of interest rate risk for portfolios of financial assets. The amendments in this update expand the current last-of-layer method of hedge accounting that permits only one hedged layer to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. This guidance is effective for the Company in the first quarter of fiscal 2024 with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

In March 2022, the FASB issued ASU 2022-02 Financial Instruments - Credit Losses (Topic 326), which eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310 and amends the guidance on vintage disclosures to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to the accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. This guidance is effective for the Company in the first quarter of fiscal 2024 with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

11


VIAVI SOLUTIONS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 3. Earnings Per Share
The following table sets forth the computation of basic and diluted net income (loss) per share (in millions, except per share data):
 Three Months EndedNine Months Ended
 April 2, 2022April 3, 2021April 2, 2022April 3, 2021
Numerator:  
Net income (loss)$19.2 $17.2 $(1.0)$64.2 
Denominator:
Weighted-average shares outstanding:
Basic 229.2 228.7 232.1 228.8 
Shares issuable assuming conversion of convertible notes (1)
4.9 8.5  2.9 
Effect of dilutive securities from stock-based compensation plans2.7 3.0  2.7 
Diluted236.8 240.2 232.1 234.4 
Net income (loss) per share:
Basic$0.08 $0.08 $ $0.28 
Diluted$0.08 $0.07 $ $0.27 
(1)    Represents the number of shares that would be issued if the Company’s 1.00% Senior Convertible Notes (2024 Notes) and 1.75% Senior Convertible Notes (2023 Notes) had been converted. The par amount of the Company’s convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest. The “in-the money” conversion benefit feature above the conversion price of the 2023 Notes and 2024 Notes of $13.94 and $13.22 per share respectively, is payable in cash, shares of the Company’s common stock or a combination of both, at the Company’s election. Refer to “Note 11. Debt” for more details.

The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net income per share because their effect would have been anti-dilutive (in millions):
 Three Months EndedNine Months Ended
 April 2, 2022April 3, 2021April 2, 2022April 3, 2021
Restricted stock units (1)
0.3 0.3 0.6 0.4 
Shares issuable from Senior Convertible Notes (2)
  5.9  
Total potentially dilutive securities0.3 0.3 6.5 0.4 
(1)     Represents the number of restricted stock units (RSUs) that are excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive.
(2)     As the Company incurred a loss from continuing operations in the period, potential securities from employee stock options, Employee Stock Purchase Plan (ESPP), RSUs, performance stock units (PSUs) and Senior Convertible Notes have been excluded from the dilutive net loss per share computations as their effects were deemed anti-dilutive.


Note 4. Accumulated Other Comprehensive Loss
The Company’s accumulated other comprehensive loss consists of the accumulated net unrealized gains or losses on available-for-sale investments, foreign currency translation adjustments and change in unrealized components of defined benefit obligations.
12


VIAVI SOLUTIONS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the nine months ended April 2, 2022, the changes in accumulated other comprehensive loss, net of tax, by component were as follows (in millions):
Unrealized losses on available-for sale investmentsForeign 
currency translation adjustments, net of tax
Change in unrealized components of defined benefit obligations (1)
Total
Beginning balance as of July 3, 2021$(5.1)$(68.1)$(24.0)$(97.2)
Other comprehensive income (loss) before reclassification0.1 (26.5) (26.4)
Amounts reclassified out of accumulated other comprehensive loss  2.3 2.3 
Net current-period other comprehensive income (loss)0.1 (26.5)2.3 (24.1)
Ending balance as of April 2, 2022$(