v3.26.1
Employee Retirement Plans
 12 Months Ended
Jun. 27, 2026
Retirement Benefits [Abstract]  
Employee Retirement Plans
Note 15. Employee Retirement Plans
Defined Contribution Plans
In the United States, we sponsor the Lumentum 401(k) Retirement Plan (the “401(k) Plan”), a defined contribution plan under the Employee Retirement Income Security Act of 1974 (“ERISA”), which provides retirement benefits for its eligible employees through tax deferred salary deductions. The 401(k) Plan allows employees to contribute up to 50% of their annual compensation, with contributions limited to $24,500 (or $32,500 for employees over 50 years of age) in calendar year 2026 as set by the Internal Revenue Service. Employees are eligible for matching contributions after completing 180 days of service. Our match is contributed on a per-pay-period basis and is based on employees’ before-tax contributions and compensation each pay period. All matching contributions are made in cash and vest immediately under the 401(k) Plan. In fiscal years 2026, 2025 and 2024, our contribution expense to the 401(k) Plan was $3.3 million, $2.7 million, and $3.8 million, respectively.
We also have defined contribution plans in most of the other countries in which we operate, either as required by statutory law or as provided by our supplemental offering. Our contribution expense to all defined contribution plans outside the United States were $16.5 million, $11.4 million, and $7.4 million for fiscal years 2026, 2025 and 2024, respectively.
Defined Benefit Plans
We sponsor defined benefit pension plans covering employees in Japan, Switzerland and Thailand. Pension plan benefits are based primarily on participants’ compensation and years of service credited as specified under the terms of each country’s plan. Employees are entitled to a lump sum benefit upon retirement or upon certain instances of termination. The funding policy is consistent with the local requirements of each country.
We account for our defined benefit obligations in accordance with the authoritative guidance which requires us to record our obligation to the participants, as well as the corresponding net periodic cost. We determine our obligation to the participants and our net periodic cost using actuarial valuations provided by third-party actuaries. As of June 27, 2026, our projected benefit obligations, net, in Japan, Switzerland and Thailand were $2.3 million, $0.3 million and $5.6 million, respectively. They were recorded in our consolidated balance sheets as accrued payroll and related expenses for the short-term portion while other non-current liabilities for the long-term portion, and represent the total projected benefit obligation (“PBO”) less the fair value of plan assets.
As of June 27, 2026, the defined benefit plans in Switzerland were partially funded, while the defined benefit plans in Japan and Thailand were unfunded.
The change in the benefit obligations of pension plans in Japan, Switzerland, and Thailand, and the change in plan assets in Switzerland were as follows (in millions):
June 27, 2026June 28, 2025
Change in projected benefit obligation:
  Benefit obligation at beginning of year$29.6 $24.5 
     Service cost2.3 1.7 
     Interest cost0.4 0.5 
     Plan participants’ contributions0.1 0.8 
     Actuarial (gains) losses (1)
(0.9)3.0 
     Curtailments(1.0)— 
     Net benefits payment(3.5)(2.0)
     Settlements— (1.6)
     Plan amendments— (0.2)
     Foreign exchange impact(0.6)2.9 
  Benefit obligation at end of year$26.4 $29.6 
Change in plan assets:
  Fair value of plan assets at beginning of year$17.8 $14.9 
     Actual return on plan assets2.8 1.1 
     Employer contribution0.5 2.8 
     Plan participants’ contribution0.1 0.8 
     Net benefits payment(3.4)(2.0)
     Settlements— (1.6)
     Foreign exchange impact(0.3)1.8 
  Fair value of plan assets at end of year$17.5 $17.8 
Funded status (2)
$(8.9)$(11.8)
Changes in benefit obligations and plan assets recognized in other comprehensive income:
     Prior service cost$0.1 $— 
     Amortization of accumulated net actuarial gain(0.1)— 
     Gain recognized due to curtailment(0.9)— 
     Net actuarial loss (gain)$(3.1)$2.4 
     Loss recognized due to settlement0.3 (0.4)
$(3.7)$2.0 
Accumulated benefit obligation$20.9 $23.2 
(1) Actuarial losses are primarily driven by changes in discount rates.
(2) The current portion of the projected benefit obligation is $1.0 million and $0.9 million, respectively, as of June 27, 2026 and June 28, 2025, which was recorded under accrued payroll and related expenses in the consolidated balance sheets. The non-current portion of the projected benefit obligation is $7.2 million and $11.0 million, respectively, as of June 27, 2026 and June 28, 2025, which was recorded under other non-current liabilities in the consolidated balance sheets. Refer to “Note 7. Balance Sheet Details.”
Net periodic pension costs in Japan, Switzerland and Thailand include the following components for the periods presented (in millions):
Years Ended
June 27, 2026June 28, 2025June 29, 2024
Service cost$2.3 $1.7 $1.9 
Interest cost0.4 0.5 0.4 
Amortization of prior service cost(0.1)(0.1)(0.1)
Expected return on plan assets(0.5)(0.5)(0.4)
Curtailment gain(0.1)— — 
Amortization of net loss0.1 — — 
Settlement (gain) losses (0.2)0.4 0.1 
Net periodic pension cost$1.9 $2.0 $1.9 
Assumptions
Underlying both the calculation of the projected benefit obligation and net periodic cost are actuarial valuations. These valuations use participant-specific information such as salary, age and assumptions about interest rates, compensation increases and other factors. At a minimum, we evaluate these assumptions annually and make changes as necessary.
The discount rate reflects the estimated rate at which the pension benefits could be effectively settled. In developing the discount rate, we consider the yield available on an appropriate AA or AAA corporate bond index, adjusted to reflect the term of the plan’s liabilities.
The expected return on assets was estimated by using the weighted average of the real expected long-term return (net of inflation) on the relevant classes of assets based on the target asset mix and adding the chosen inflation assumption.
The following table summarizes the weighted-average assumptions used to determine net periodic cost and benefit obligation for our defined benefit plans in Japan, Switzerland and Thailand:
Years Ended
June 27, 2026June 28, 2025
Assumptions used to determine net periodic cost:
Discount rate1.6 %2.0 %
Expected long-term return on plan assets3.0 %3.0 %
Salary increase rate3.9 %3.9 %
Assumptions used to determine benefit obligation at end of year:
Discount rate1.7 %1.3 %
Salary increase rate2.9 %3.0 %
Fair Value Measurement of Plan Assets
The following table sets forth the plan assets of our defined benefit plan in Switzerland at fair value and the percentage of assets allocations as of June 27, 2026 and June 28, 2025 (in millions, except percentage data):
Fair value measurement as of
June 27, 2026
Target allocationTotal Percentage of plan assetQuoted prices in active markets for identical assets
(Level 1)		Significant other observable inputs
(Level 2)
Assets:
     Global equity37 %$6.5 37 %$— $6.5 
     Fixed income25 %4.2 24 %— 4.2 
     Alternative investment14 %2.3 13 %— 2.3 
     Cash1 %0.3 2 %0.3 — 
     Other assets23 %4.2 24 %— 4.2 
  Total Assets100 %$17.5 100 %$0.3 $17.2 
Fair value measurement as of
June 28, 2025
Target allocationTotalPercentage of plan assetQuoted prices in active markets for identical assets
(Level 1)		Significant other observable inputs
(Level 2)
Assets:
   Global equity35 %$6.5 34 %$— $6.5 
   Fixed income27 %5.1 27 %— 5.1 
   Alternative investment14 %2.7 14 %— 2.7 
   Cash1 %0.2 1 %0.2 — 
   Other assets23 %4.6 24 %— 4.6 
Total Assets100 %$19.1 100 %$0.2 $18.9 
Our pension assets consist of multiple institutional funds (“pension funds”) of which the fair values are based on the quoted prices of the underlying funds. Pension funds are classified as Level 2 assets since such funds are not directly traded in active markets. Global equity consists of several funds that invest primarily in Swiss and foreign equities; fixed income consists of several funds that invest primarily in investment grade domestic and overseas bonds; alternative investment consists of several funds that invest primarily in hedge funds, infrastructure funds and private equity and debt; and other assets consist of several funds that invest primarily in real estate funds.
Future Benefit Payments
We estimate our expected benefit payments to participants in the defined benefit pension plans based on the same assumptions used to measure our PBO at year-end which includes benefits attributable to estimated future compensation increases.
The following benefit payments are estimated to be paid from our defined benefit pension plans (in millions): 
Fiscal YearsTotal
2027$2.1 
20281.7 
20291.6 
20301.8 
20312.5 
Next five years14.5 
Total expected benefit payments$24.2 
We expect to contribute $1.8 million to our defined benefit pension plans in fiscal year 2027.