Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 | |
Entity Central Index Key | 1116521 | |
Entity Registrant Name | AVAYA INC | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUE | ||||
Products | $487 | $532 | $1,036 | $1,106 |
Services | 508 | 528 | 1,038 | 1,085 |
TOTAL REVENUES | 995 | 1,060 | 2,074 | 2,191 |
Products: | ||||
Costs (exclusive of amortization of acquired technology intangible assets) | 182 | 206 | 385 | 434 |
Amortization of acquired technology intangible assets | 7 | 14 | 16 | 28 |
Services | 214 | 243 | 443 | 492 |
TOTAL COST OF REVENUE | 403 | 463 | 844 | 954 |
GROSS PROFIT | 592 | 597 | 1,230 | 1,237 |
OPERATING EXPENSES | ||||
Selling, general and administrative | 356 | 397 | 730 | 790 |
Research and development | 86 | 101 | 174 | 196 |
Amortization of acquired intangible assets | 57 | 57 | 114 | 115 |
Restructuring charges, net | 10 | 42 | 25 | 49 |
TOTAL OPERATING EXPENSES | 509 | 597 | 1,043 | 1,150 |
OPERATING INCOME | 83 | 0 | 187 | 87 |
Interest expense | -110 | -116 | -222 | -235 |
Gains (Losses) on Extinguishment of Debt | 0 | -4 | 0 | -4 |
Other (expense) income, net | -1 | -2 | 13 | -1 |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -28 | -122 | -22 | -153 |
Benefit from (provision for) income taxes of continuing operations | 6 | -1 | 3 | -27 |
Loss from continuing operations | -22 | -123 | -19 | -180 |
Income from discontinued operations, net of income taxes | 0 | 27 | 0 | 30 |
NET LOSS | ($22) | ($96) | ($19) | ($150) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Net loss | ($22) | ($96) | ($19) | ($150) |
Other comprehensive income (loss): | ||||
Pension, postretirement and postemployment benefit-related items, net of tax of $10 and $11 for the three and six months ended March 31, 2015 and $9 and $9 for the three and six months ended March 31, 2014, respectively | 7 | 4 | 24 | 15 |
Cumulative translation adjustment, net of tax benefit of $0 and $0 for the three and six months ended March 31, 2015 and $1 and $1 for the three and six months ended March 31, 2014, respectively | 66 | 0 | 76 | -15 |
Other | 0 | -1 | 0 | -1 |
Other comprehensive income (loss) | 73 | 3 | 100 | -1 |
Comprehensive income (loss) | $51 | ($93) | $81 | ($151) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Pension, postretirement and postemployment benefit plans, tax | $10 | $9 | $11 | $9 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $332 | $322 |
Accounts receivable, net | 688 | 745 |
Inventory | 190 | 197 |
Deferred income taxes, net | 23 | 24 |
Other current assets | 216 | 211 |
TOTAL CURRENT ASSETS | 1,449 | 1,499 |
Property, plant and equipment, net | 278 | 281 |
Deferred income taxes, net | 47 | 52 |
Acquired intangible assets, net | 1,093 | 1,224 |
Goodwill | 4,053 | 4,047 |
Other assets | 91 | 99 |
TOTAL ASSETS | 7,011 | 7,202 |
Current liabilities: | ||
Debt maturing within one year | 19 | 19 |
Accounts payable | 384 | 416 |
Payroll and benefit obligations | 217 | 228 |
Deferred revenue | 722 | 668 |
Business restructuring reserve, current portion | 95 | 86 |
Other current liabilities | 235 | 254 |
TOTAL CURRENT LIABILITIES | 1,672 | 1,671 |
Long-term debt | 5,920 | 5,949 |
Pension obligations | 1,395 | 1,535 |
Other postretirement obligations | 266 | 273 |
Deferred income taxes, net | 255 | 249 |
Business restructuring reserve, non-current portion | 70 | 119 |
Other liabilities | 410 | 475 |
TOTAL NON-CURRENT LIABILITIES | 8,316 | 8,600 |
Commitments and contingencies | ||
STOCKHOLDER'S DEFICIENCY | ||
Common stock, par value $.01 per share; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 2,973 | 2,962 |
Accumulated deficit | -4,850 | -4,831 |
Accumulated other comprehensive loss | -1,100 | -1,200 |
TOTAL STOCKHOLDER'S DEFICIENCY | -2,977 | -3,069 |
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIENCY | $7,011 | $7,202 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100 | 100 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING ACTIVITIES: | ||
NET LOSS | ($19) | ($150) |
Income from discontinued operations, net of income taxes | 0 | 30 |
Loss from continuing operations | -19 | -180 |
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 186 | 237 |
Share-based compensation | 11 | 14 |
Amortization of debt issuance costs | 7 | 7 |
Accretion of debt discount | 3 | 2 |
Non-cash charge for debt issuance costs upon redemption of debt | 0 | 2 |
Third-party fees expensed in connection with the debt modification | 0 | 2 |
Provision for uncollectible receivables | 1 | 1 |
Deferred income taxes, net | -19 | -31 |
Unrealized (gain) loss on foreign currency exchange | -5 | 6 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 55 | 44 |
Inventory | 1 | 23 |
Accounts payable | -22 | -10 |
Payroll and benefit obligations | -54 | -79 |
Business restructuring reserve | -17 | -22 |
Deferred revenue | 70 | 27 |
Other assets and liabilities | -53 | -11 |
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES | 145 | 32 |
NET CASH PROVIDED BY DISCONTINUED OPERATING ACTIVITIES | 0 | 4 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 145 | 36 |
INVESTING ACTIVITIES: | ||
Capital expenditures | -67 | -59 |
Capitalized software development costs | 0 | -1 |
Acquisition of businesses, net of cash acquired | -6 | -11 |
Proceeds from sale of long-lived assets | 0 | 61 |
Proceeds from sale-leaseback transactions | 15 | 0 |
Proceeds from sale of investments | 0 | 1 |
Other investing activities, net | 2 | 0 |
NET CASH USED FOR CONTINUING INVESTING ACTIVITIES | -60 | -9 |
NET CASH PROVIDED BY DISCONTINUED INVESTING ACTIVITIES | 0 | 98 |
NET CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | -60 | 89 |
FINANCING ACTIVITIES: | ||
Repayments of borrowings under multi-currency revolver | -70 | 0 |
Debt issuance and debt modification costs | 0 | -10 |
Repayment of long-term debt | -19 | -19 |
Payments related to sale-leaseback transactions | -5 | 0 |
Other financing activities, net | -2 | 3 |
NET CASH USED FOR FINANCING ACTIVITIES | -46 | -28 |
Effect of exchange rate changes on cash and cash equivalents | -29 | -1 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 10 | 96 |
Cash and cash equivalents at beginning of period | 322 | 288 |
Cash and cash equivalents at end of period | 332 | |
Secured Debt | Senior Secured Term B-6 Loans | ||
FINANCING ACTIVITIES: | ||
Proceeds from term B-6 loans | 0 | 1,136 |
Secured Debt | Senior Secured Multi-Currency Revolver | ||
FINANCING ACTIVITIES: | ||
Proceeds from borrowings under multi-currency revolver | 50 | 0 |
Secured Debt | Senior secured term B-5 loans | ||
FINANCING ACTIVITIES: | ||
Repayment of term B-5 loans | $0 | $1,138 |
Background_Merger_And_Basis_Of
Background, Merger And Basis Of Presentation | 6 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Merger and Basis of Presentation | Background, Merger and Basis of Presentation |
Background | |
Avaya Inc. together with its consolidated subsidiaries (collectively, the “Company” or “Avaya”) is a leading provider of contact center, unified communications and networking products and services. The Company's products and services portfolio spans software, hardware, networking technology and professional services. The Company conducts its business operations in three segments. Two of those segments, Global Communications Solutions and Avaya Networking, make up Avaya's Enterprise Collaboration Solutions product portfolio. The third segment contains Avaya’s services portfolio and is called Avaya Global Services. | |
The Company sells directly through its worldwide sales force and through its global network of channel partners. As of March 31, 2015, Avaya had approximately 11,100 channel partners, including distributors, service providers, dealers, value-added resellers, system integrators and business partners that provide sales and service support. | |
Merger | |
Avaya is a wholly owned subsidiary of Avaya Holdings Corp., a Delaware corporation (“Parent”). Parent was formed by affiliates of two private equity firms, Silver Lake Partners (“Silver Lake”) and TPG Capital (“TPG”) (collectively, the “Sponsors”). Silver Lake and TPG, through Parent, acquired Avaya in a transaction that was completed on October 26, 2007 (the “Merger”). | |
Acquisition of the Enterprise Solutions Business of Nortel Networks Corporation | |
On December 18, 2009, Avaya acquired certain assets and assumed certain liabilities of the enterprise solutions business (“NES”) of Nortel Networks Corporation out of bankruptcy court proceedings, for an adjusted purchase price of $933 million. The terms of the acquisition did not include any significant contingent consideration arrangements. | |
Acquisition of RADVISION Ltd. | |
On June 5, 2012, Avaya acquired RADVISION Ltd. (“Radvision”) for $230 million. Radvision is a global provider of videoconferencing and telepresence technologies over internet protocol (“IP”) and wireless networks. The terms of the acquisition did not include any significant contingent consideration arrangements. | |
Divestiture of IT Professional Services Business | |
On March 31, 2014, the Company completed the sale of its IT Professional Services (“ITPS”) business for a final sales price of $101 million, inclusive of $3 million of working capital adjustments and net of $2 million in costs to sell. See Note 4, “Divestiture - IT Professional Services Business,” for further details. | |
Basis of Presentation | |
The accompanying unaudited interim Consolidated Financial Statements as of March 31, 2015 and for the three and six months ended March 31, 2015 and 2014 include the accounts of Avaya Inc. and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial statements, and should be read in conjunction with the Consolidated Financial Statements and other financial information for the fiscal year ended September 30, 2014, which were included in the Company’s Annual Report on Form 10-K filed with the SEC on November 26, 2014. The significant accounting policies used in preparing these unaudited interim Consolidated Financial Statements are the same as those described in Note 2 to those audited Consolidated Financial Statements except for recently adopted accounting guidance as discussed in Note 2 “Recent Accounting Pronouncements” of these unaudited interim Consolidated Financial Statements. In management’s opinion, these unaudited interim Consolidated Financial Statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair statement of the financial condition, results of operations and cash flows for the periods indicated. | |
As a result of the divestiture of the ITPS business, the results of operations and cash flows of this business have been classified as discontinued operations in all periods presented. The consolidated results of operations for the interim periods reported are not necessarily indicative of the results to be experienced for the entire fiscal year. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
New Accounting Guidance Recently Adopted | |
In the first quarter of fiscal 2015, the Company adopted Accounting Standards Update ("ASU") No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." The standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs are required to be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. The relevant presentation and disclosures have been applied prospectively and the Company has reclassed amounts from other liabilities to deferred tax liabilities. | |
In April 2015, the FASB issued ASU 2015-03 “Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The Company adopted this guidance in the second quarter of fiscal 2015, which has been applied retrospectively. As a result of the adoption of this standard, unamortized debt issuance costs of $13 million originally included in other current assets and $42 million originally included in other assets, were reclassified as a reduction of debt maturing within one year and long-term debt, respectively, in the Consolidated Balance Sheet as of September 30, 2014. | |
Recent Accounting Guidance Not Yet Effective | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09 “Revenue from Contracts with Customers.” The standard supersedes most of the current revenue recognition guidance under GAAP and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. This accounting guidance is effective for the Company beginning in the first quarter of fiscal 2018; early adoption is not permitted. The ASU may be applied retrospectively (a) to each reporting period presented or (b) with the cumulative effect in retained earnings at the beginning of the adoption period. The Company is currently evaluating the method of adoption and the impact that the adoption of this accounting guidance may have on its Consolidation Financial Statements. | |
In August 2014, the FASB issued ASU No. 2014-15 "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." The standard requires management to evaluate, at each annual and interim reporting period, the company's ability to continue as a going concern within one year of the date the financial statements are issued and provide related disclosures. This accounting guidance is effective for the Company on a prospective basis beginning in the first quarter of fiscal 2017 and is not expected to have a material effect on its Consolidated Financial Statements. | |
In January 2015, the FASB issued ASU No. 2015-01 "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." The standard eliminated from GAAP the concept of extraordinary items. This accounting guidance is effective for the Company on a prospective basis beginning in the first quarter of fiscal 2016 and is not expected to have a material effect on its Consolidated Financial Statements. |
Business_Combinations
Business Combinations | 6 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations |
Other Acquisition | |
During the six months ended March 31, 2015, the Company completed an acquisition primarily to enhance the Company’s technology portfolio for an aggregate purchase price of $10 million, subject to working capital and other customary adjustments. The acquisition has been accounted for under the acquisition method. The acquired intangible assets associated with this acquisition were not material. | |
IT Navigator | |
On October 1, 2013, Avaya acquired IT Navigator, Ltd. (“IT Navigator”), a global provider of Cloud, social media and management products and services. The integration of the Avaya and IT Navigator portfolios has added key management reporting and social media capabilities and enhanced Avaya's Cloud as well as its unified communication and contact center products. These unaudited Consolidated Financial Statements include the operating results of IT Navigator since October 1, 2013. The terms of the acquisition did not include any significant contingent consideration arrangements. | |
These unaudited consolidated financial statements include the operating results of the acquired entities since their respective acquisition dates. The revenues and expenses specific to these businesses and their pro forma results are not material to these unaudited consolidated financial statements. |
Divestiture_of_Government_IT_P
Divestiture of Government IT Professional Services Business (Notes) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Divestiture of Government IT Professional Services Business | Divestitures | |||||||
IT Professional Services Business | ||||||||
On March 31, 2014, the Company completed the sale of the ITPS business of its wholly-owned subsidiary, Avaya Government Solutions Inc. for an initial sales price of $98 million, net of $2 million in costs to sell and subject to working capital and other customary price adjustments. Subsequent to the sale, positive working capital adjustments of $3 million were identified, and the final sales price of the ITPS business as adjusted is $101 million. The ITPS business, which was part of the Avaya Global Services segment, provides specialized information technology services exclusively to government customers in the U.S. The Company retained its Federal product sales and services teams and continues to sell unified communications, collaboration, contact center and networking products and services to Federal, state and municipal governments under the name Avaya Government Solutions. | ||||||||
Discontinued Operations | ||||||||
Summarized financial information relating to the Company's discontinued operations are as follows: | ||||||||
In millions | Three months ended March 31, 2014 | Six months ended March 31, 2014 | ||||||
SERVICES REVENUE | $ | 26 | $ | 53 | ||||
OPERATING INCOME FROM DISCONTINUED OPERATIONS | $ | 3 | $ | 7 | ||||
Gain on sale of ITPS business | 49 | 49 | ||||||
INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | 52 | $ | 56 | |||||
Provision for income taxes from discontinued operations | (25 | ) | (26 | ) | ||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | $ | 27 | $ | 30 | ||||
Technology Business Unit | ||||||||
On July 31, 2014, the Company completed the sale of assets and liabilities associated with the Technology Business Unit ("TBU") for a final sales price of $26 million. TBU, which was acquired as part of the Radvision acquisition, is a software development business that licenses technologies to developers for their use and integration into their own products and includes protocol stacks, client framework solutions, and network testing and monitoring tools. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 6 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Acquired Intangible Assets |
Goodwill | |
Goodwill is not amortized but is subject to periodic testing for impairment in accordance with GAAP at the reporting unit level which is one level below the Company’s operating segments. The test for impairment is conducted annually each July 1st or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. | |
The Company determined that no events occurred or circumstances changed during the six months ended March 31, 2015 and 2014 that would more likely than not reduce the fair value of any of the Company's reporting units below their respective carrying amounts. However, if market conditions deteriorate, it may be necessary to record impairment charges in the future. | |
Acquired Intangible Assets | |
Acquired intangible assets include acquired technology, customer relationships, trademarks and trade-names and other intangibles. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from five years to fifteen years. | |
Long-lived assets, including intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. | |
Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually each July 1st or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Certain of the Company’s trademarks and trade names are expected to generate cash flow indefinitely. Consequently, these assets are classified as indefinite-lived intangibles. | |
The Company determined that no events had occurred or circumstances changed during the six months ended March 31, 2015 and 2014 that would indicate that its long-lived assets, including intangible assets with finite lives, may not be recoverable or that it is more likely than not that its intangible assets with indefinite lives are impaired. However, if market conditions deteriorate, it may be necessary to record impairment charges in the future. |
Supplementary_Financial_Inform
Supplementary Financial Information | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Supplementary Financial Information [Abstract] | ||||||||||||||||
Supplementary Financial Information | Supplementary Financial Information | |||||||||||||||
Supplemental Operations Information | ||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | ||||||||||||
OTHER (EXPENSE) INCOME, NET | ||||||||||||||||
Interest income | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||
(Loss) gain on foreign currency transactions | (1 | ) | (2 | ) | 5 | — | ||||||||||
Third party fees incurred in connection with debt modifications | — | (2 | ) | — | (2 | ) | ||||||||||
Venezuela hyperinflationary and devaluation charges | — | (2 | ) | — | (2 | ) | ||||||||||
Change in certain tax indemnifications | — | 3 | 9 | 3 | ||||||||||||
Other, net | (1 | ) | — | (2 | ) | (1 | ) | |||||||||
Total other (expense) income, net | $ | (1 | ) | $ | (2 | ) | $ | 13 | $ | (1 | ) | |||||
Business_Restructuring_Reserve
Business Restructuring Reserves And Programs | 6 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Restructuring Reserve [Abstract] | ||||||||||||
Business Restructuring Reserves and Programs | Business Restructuring Reserve and Programs | |||||||||||
Fiscal 2015 Restructuring Program | ||||||||||||
During fiscal 2015, the Company continued to identify opportunities to streamline operations and generate costs savings which included eliminating employee positions. During the six months ended March 31, 2015, the Company recognized restructuring charges of $25 million, net. These charges included employee separation costs of $18 million primarily associated with fiscal 2015 employee severance actions in the U.S. and Europe, Middle East and Africa ("EMEA"), for which the related payments are expected to be completed in fiscal 2019. The separation charges include, but are not limited to, social pension fund payments and health care and unemployment insurance costs to be paid to or on behalf of the affected employees. As the Company continues to evaluate and identify additional operational synergies, additional cost saving opportunities that may exist. | ||||||||||||
The following table summarizes the components of the fiscal 2015 restructuring program during the six months ended March 31, 2015: | ||||||||||||
In millions | Employee | Lease | Total | |||||||||
Separation | Obligations | |||||||||||
Costs | ||||||||||||
2015 restructuring charges | $ | 18 | $ | 1 | $ | 19 | ||||||
Cash payments | (7 | ) | — | (7 | ) | |||||||
Impact of foreign currency fluctuations | (1 | ) | — | (1 | ) | |||||||
Balance as of March 31, 2015 | $ | 10 | $ | 1 | $ | 11 | ||||||
Fiscal 2014 Restructuring Program | ||||||||||||
During fiscal 2014, the Company continued to identify opportunities to streamline operations and generate costs savings which included exiting facilities and eliminating employee positions. Restructuring charges recorded during fiscal year 2014 associated with these initiatives, net of adjustments to previous periods, were $165 million. These charges included employee separation costs of $155 million, primarily associated with employee severance actions of $123 million in EMEA and $24 million in the U.S. The EMEA charges include plans in the third and fourth quarters of fiscal 2014 for the elimination of 121 and 165 positions and resulted in a charge of $26 million and $39 million, respectively, for which the related payments are expected to be completed in fiscal 2019. The separation charges include, but are not limited to, social pension fund payments and health care and unemployment insurance costs to be paid to or on behalf of the affected employees. The charges in the U.S. included an enhanced separation plan that was offered to certain employees that will result in the elimination of 172 positions and a restructuring charge of $10 million, for which the related payments are expected to be completed in fiscal 2015. | ||||||||||||
Restructuring charges also included $9 million of lease obligations primarily in the U.S. The future lease obligations, net of estimated sublease income, related to operating lease obligations for unused space in connection with vacating or consolidating facilities during fiscal 2014 are expected to continue through fiscal 2022. | ||||||||||||
The following table summarizes the components of the fiscal 2014 restructuring program during the six months ended March 31, 2015: | ||||||||||||
In millions | Employee | Lease | Total | |||||||||
Separation | Obligations | |||||||||||
Costs | ||||||||||||
Balance as of October 1, 2014 | $ | 115 | $ | 7 | $ | 122 | ||||||
Cash payments | (17 | ) | (2 | ) | (19 | ) | ||||||
Adjustments (1) | — | 2 | 2 | |||||||||
Impact of foreign currency fluctuations | (14 | ) | — | (14 | ) | |||||||
Balance as of March 31, 2015 | $ | 84 | $ | 7 | $ | 91 | ||||||
(1) | Included in adjustments are changes in estimates, whereby all increases and decreases in costs related to the fiscal 2014 restructuring program are recorded to the restructuring charges line item in operating expenses in the period of the adjustment. | |||||||||||
Fiscal 2008 through 2013 Restructuring Programs | ||||||||||||
During fiscal years 2008 through 2013, the Company identified opportunities to streamline operations and generate cost savings which included exiting facilities and eliminating employee positions. The payments related to the headcount reductions identified in those programs are expected to be completed in fiscal 2018. Future rental payments, net of estimated sublease income, related to operating lease obligations for unused space in connection with the closing or consolidation of facilities are expected to continue through fiscal 2021. | ||||||||||||
The following table aggregates the remaining components of the fiscal 2008 through 2013 restructuring programs during the six months ended March 31, 2015: | ||||||||||||
In millions | Employee | Lease | Total | |||||||||
Separation | Obligations | |||||||||||
Costs | ||||||||||||
Balance as of October 1, 2014 | $ | 9 | $ | 74 | $ | 83 | ||||||
Cash payments | (5 | ) | (10 | ) | (15 | ) | ||||||
Adjustments (1) | 1 | 3 | 4 | |||||||||
Impact of foreign currency fluctuations | (2 | ) | (7 | ) | (9 | ) | ||||||
Balance as of March 31, 2015 | $ | 3 | $ | 60 | $ | 63 | ||||||
(1) | Included in adjustments are changes in estimates, whereby all increases and decreases in costs related to the fiscal 2009 through 2013 restructuring programs are recorded to the restructuring charges line item in operating expenses in the period of the adjustment. Included in adjustments are changes in estimates whereby all increases in costs related to the fiscal 2008 restructuring reserve are recorded in the restructuring charges line item in operating expenses in the period of the adjustments and decreases in costs are recorded as adjustments to goodwill. | |||||||||||
In furtherance of the restructuring programs noted above and cost saving initiatives to consolidate facilities, on January 14, 2014, the Company completed the sale of its Westminster, Colorado facility. In connection with the sale of the facility, in December 2013 the Company changed its estimate of the salvage value and the useful life of the building to reflect the expected sales price and closing date for the sale, respectively. The changes to the estimated salvage value and the useful life resulted in $35 million of additional depreciation expense for the six months ended March 31, 2014. |
Financing_Arrangements
Financing Arrangements | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Financing Arrangements | ||||||||||||||||
Financing Arrangements | ||||||||||||||||
In connection with the Merger, on October 26, 2007, the Company entered into financing arrangements consisting of a senior secured credit facility, a senior unsecured credit facility, which later became senior unsecured notes, and a senior secured multi-currency asset-based revolving credit facility, certain of which arrangements were amended on December 18, 2009 in connection with the acquisition of NES and amended on February 11, 2011 in connection with a debt refinancing. During fiscal 2014, the Company entered into transactions to refinance certain term loans under its senior secured credit facility with a new tranche of term loans. Also during fiscal 2014, the Company redeemed its senior unsecured notes due 2015 through cash on-hand and borrowings under the Company's revolving credit facilities. | ||||||||||||||||
Principal amounts of long term debt and long term debt net of discounts and issuance costs consists of the following: | ||||||||||||||||
March 31, | September 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
In millions | Principal Amount | Net of Discounts and Issuance Costs | Principal Amount | Net of Discounts and Issuance costs | ||||||||||||
Variable rate senior secured multi-currency asset-based revolving credit facility due October 26, 2016 | $ | 40 | $ | 40 | $ | 40 | $ | 40 | ||||||||
Variable rate senior secured multi-currency revolver due October 26, 2016 | 70 | 69 | 90 | 88 | ||||||||||||
Variable rate senior secured term B-3 loans due October 26, 2017 | 2,090 | 2,071 | 2,102 | 2,079 | ||||||||||||
Variable rate senior secured term B-4 loans due October 26, 2017 | 1 | 1 | 1 | 1 | ||||||||||||
Variable rate senior secured term B-6 loans due March 31, 2018 | 1,121 | 1,109 | 1,128 | 1,113 | ||||||||||||
7% senior secured notes due April 1, 2019 | 1,009 | 998 | 1,009 | 996 | ||||||||||||
9% senior secured notes due April 1, 2019 | 290 | 285 | 290 | 285 | ||||||||||||
10.50% senior secured notes due March 1, 2021 | 1,384 | 1,366 | 1,384 | 1,366 | ||||||||||||
Total debt | $ | 6,005 | 5,939 | $ | 6,044 | 5,968 | ||||||||||
Debt maturing within one year | (19 | ) | (19 | ) | ||||||||||||
Non-current portion of long-term debt | $ | 5,920 | $ | 5,949 | ||||||||||||
On February 5, 2014, Avaya Inc., Citibank, N.A., and the lenders party thereto entered into Amendment No. 8 to Credit Agreement pursuant to which the Cash Flow Credit Agreement was amended. Pursuant to the amendment, the Company refinanced in full all of the outstanding term B-5 loans with the cash proceeds from the issuance of $1,138 million aggregate principal balance of term B-6 loans under the Cash Flow Credit Agreement. | ||||||||||||||||
The February 5, 2014 amendment of the Cash Flow Credit Agreement was accounted for as a modification of debt to the extent the existing term B-5 loans were refinanced with term B-6 loans issued to the same creditor and an extinguishment of debt to the extent refinanced with term B-6 loans issued to a different creditor. Accordingly, for the portion accounted for as a debt extinguishment the difference between the reacquisition price (including any unamortized premium and debt issue costs) of $4 million was recognized as a loss upon debt extinguishment during fiscal 2014. Third party expenses of $2 million associated with the modification of debt were expensed as incurred and included in other income, net during fiscal 2014. | ||||||||||||||||
On May 15, 2014, Avaya redeemed 100% of the aggregate principal amount of the Company’s 10.125%/10.875% senior unsecured PIK toggle notes due 2015 and 9.75% senior unsecured cash-pay notes due 2015 at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest, or $92 million and $58 million, respectively. The redemption price of $150 million was funded through cash on-hand of $10 million, borrowings of $100 million under the revolver portion of the Cash Flow Credit Agreement (the “CF Draw”) and borrowings of $40 million under the senior secured asset-based credit facility (the “ABL Draw”). | ||||||||||||||||
The senior secured multi-currency revolver available under the Cash Flow Agreement allows for borrowings of up to $200 million. At March 31, 2015 and September 30, 2014, there were borrowings of $70 million and $90 million, respectively, in addition to $26 million and $0 million of issued and outstanding letters of credit with the aggregate remaining revolver availability of $104 million and $110 million, respectively. | ||||||||||||||||
The Company's senior secured multi-currency asset-based revolving credit facility allows for borrowings of up to $335 million subject to availability under a borrowing base, of which $150 million may be in the form of letters of credit. The borrowing base at any time equals the sum of 85% of eligible accounts receivable plus 85% of the net orderly liquidation value of eligible inventory, subject to certain reserves and other adjustments. At March 31, 2015 and September 30, 2014, the Company had aggregate borrowings of $40 million and $40 million, respectively, in addition to $120 million and $79 million of issued and outstanding letters of credit with aggregate remaining revolver availability of $115 million and $207 million, respectively. | ||||||||||||||||
The weighted average contractual interest rate of the Company’s outstanding debt as of March 31, 2015 and September 30, 2014 was 6.9% and 6.9%, respectively. The effective interest rate of each obligation is not materially different than its contractual interest rate. As of March 31, 2015 and September 30, 2014, the Company was not in default under any of its agreements. | ||||||||||||||||
Annual maturities of long-term debt for the next five years ending September 30 and thereafter consist of: | ||||||||||||||||
In millions | ||||||||||||||||
Remainder of fiscal 2015 | $ | 19 | ||||||||||||||
2016 | 38 | |||||||||||||||
2017 | 148 | |||||||||||||||
2018 | 3,117 | |||||||||||||||
2019 | 1,299 | |||||||||||||||
2020 and thereafter | 1,384 | |||||||||||||||
Total | $ | 6,005 | ||||||||||||||
Capital Lease Obligations | ||||||||||||||||
Included in other liabilities is $62 million and $59 million of capital lease obligations, net of imputed interest as of March 31, 2015 and September 30, 2014, respectively, which includes assets under a sale-leaseback arrangement and an office facility. | ||||||||||||||||
On August 20, 2014, the Company entered into an agreement to outsource certain delivery services associated with the Avaya Private Cloud Services business. That agreement also included the sale of specified assets owned by the Company which are being leased-back by Avaya and accounted for as a capital lease. Under the terms of the agreement, additional financing is also available to Avaya and its subsidiaries of up to $24 million per year for the sale of equipment used in the performance of services under the agreement, provided that no material adverse change with respect to the Company has occurred or is continuing as of the date any such financing is requested. During the six months ended March 31, 2015, the Company received $15 million in cash proceeds in connection with the sale of equipment used in the performance of services under this agreement. As of March 31, 2015 and September 30, 2014, capital lease obligations associated with this agreement were $46 million and $40 million, respectively. |
Derivatives_And_Other_Financia
Derivatives And Other Financial Instruments | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Derivatives and Other Financial Instruments | Derivatives and Other Financial Instruments | ||||||||
Interest Rate Swaps | |||||||||
From time to time, the Company has entered into interest rate swap agreements to manage the amount of its floating rate debt in order to reduce its exposure to variable rate interest payments associated with certain borrowings under the Cash Flow Credit Agreement. As of and during the six months ended March 31, 2015 and 2014 there were no outstanding interest rate swap agreements. | |||||||||
Foreign Currency Forward Contracts | |||||||||
The Company utilizes foreign currency forward contracts primarily to manage short-term exchange rate exposures on certain receivables, payables and intercompany loans residing on foreign subsidiaries’ books, which are denominated in currencies other than the subsidiary’s functional currency. When those items are revalued into the subsidiaries’ functional currencies at the month-end exchange rates, the fluctuations in the exchange rates are recognized in the Consolidated Statements of Operations as other (expense) income, net. Changes in the fair value of the Company’s foreign currency forward contracts used to offset these exposed items are also recognized in the Consolidated Statements of Operations as other (expense) income, net in the period in which the exchange rates change. | |||||||||
The gains and (losses) of the foreign currency forward contracts included in other (expense) income, net were $3 million and $2 million for the three months ended March 31, 2015 and 2014, respectively, and $(1) million and $2 million for the six months ended March 31, 2015 and 2014, respectively. | |||||||||
The following table summarizes the estimated fair value of the foreign currency forward contracts: | |||||||||
In millions | |||||||||
Balance Sheet Location | March 31, 2015 | September 30, 2014 | |||||||
Other current assets | $ | 1 | $ | — | |||||
Other current liabilities | (1 | ) | (2 | ) | |||||
Net Asset (Liability) | $ | — | $ | (2 | ) | ||||
Fair_Value_Measures
Fair Value Measures | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measures | Fair Value Measures | |||||||||||||||
Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
The accounting guidance for fair value measurements also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs are prioritized into three levels that may be used to measure fair value: | ||||||||||||||||
Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. | ||||||||||||||||
Level 2: Inputs that reflect quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||||||||||||
Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date. | ||||||||||||||||
Asset and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and September 30, 2014 were as follows: | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
In millions | Total | Quoted Prices in | Significant | Significant | ||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Instruments | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Other Current Assets: | ||||||||||||||||
Foreign currency forward contracts | $ | 1 | $ | — | $ | 1 | $ | — | ||||||||
Other Non-Current Assets: | ||||||||||||||||
Investments | $ | 1 | $ | 1 | $ | — | $ | — | ||||||||
Other Current Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | 1 | $ | — | $ | 1 | $ | — | ||||||||
September 30, 2014 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
In millions | Total | Quoted Prices in | Significant | Significant | ||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Instruments | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Other Non-Current Assets: | ||||||||||||||||
Investments | $ | 1 | $ | 1 | $ | — | $ | — | ||||||||
Other Current Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | 2 | $ | — | $ | 2 | $ | — | ||||||||
Foreign Currency Forward Contracts | ||||||||||||||||
Foreign currency forward contracts classified as Level 2 assets and liabilities are priced using quoted market prices for similar assets or liabilities in active markets. | ||||||||||||||||
Investments | ||||||||||||||||
Investments classified as Level 2 assets and liabilities are priced using quoted market prices for identical assets which are subject to infrequent transactions (i.e., a less active market). | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, to the extent the underlying liability will be settled in cash, approximate carrying values because of the short-term nature of these instruments. | ||||||||||||||||
On October 3, 2011 and October 3, 2012, the Company advanced $8 million and $10 million, respectively, to Parent in exchange for a note receivable. The proceeds of such notes were used by Parent to fund, in part, an acquisition of all outstanding shares of a unified communications solutions provider. Immediately upon completing the acquisition, Parent merged the acquired entity with and into Avaya Inc., with Avaya Inc. surviving the merger. | ||||||||||||||||
The principal amount of these notes plus any accrued and unpaid interest are due in full January 24, 2019 (as modified) and October 28, 2017 (as modified) with interest at the rate of 1.65% (as modified) and 1.85% (as modified) per annum, respectively. These notes are included in other assets in the Company's Consolidated Balance Sheets. The estimated fair value of the $8 million note receivable was $7 million and $6 million at March 31, 2015 and September 30, 2014, respectively. The estimated fair value of the $10 million note receivable was $9 million and $9 million at March 31, 2015 and September 30, 2014, respectively. The estimated fair value of each note was determined based on a Level 2 input using discounted cash flow techniques. | ||||||||||||||||
The estimated fair values of the amounts borrowed under the Company's revolving credit facilities at March 31, 2015 were estimated based on a Level 2 input using discounted cash flow techniques. Significant inputs to the discounted cash flow model include projected future cash flows based on projected LIBOR rates, and the average margin for companies with similar credit ratings and similar maturities. The estimated fair values of all other amounts borrowed under the Company’s financing arrangements at March 31, 2015 and September 30, 2014 were estimated based on a Level 2 input using quoted market prices for the Company’s debt which is subject to infrequent transactions (i.e. a less active market). | ||||||||||||||||
The estimated fair values of the amounts borrowed under the Company’s credit agreements at March 31, 2015 and September 30, 2014 are as follows: | ||||||||||||||||
March 31, 2015 | September 30, 2014 | |||||||||||||||
In millions | Principal | Fair | Principal | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Variable rate senior secured multi-currency asset-based revolving credit facility due October 26, 2016 | $ | 40 | $ | 38 | $ | 40 | $ | 38 | ||||||||
Variable rate senior secured multi-currency revolver due October 26, 2016 | 70 | 68 | 90 | 86 | ||||||||||||
Variable rate senior secured term B-3 loans due October 26, 2017 | 2,090 | 2,063 | 2,102 | 2,002 | ||||||||||||
Variable rate senior secured term B-4 loans due October 26, 2017 | 1 | 1 | 1 | 1 | ||||||||||||
Variable rate senior secured term B-6 loans due March 31, 2018 | 1,121 | 1,118 | 1,128 | 1,116 | ||||||||||||
7% senior secured notes due April 1, 2019 | 1,009 | 1,006 | 1,009 | 975 | ||||||||||||
9% senior secured notes due April 1, 2019 | 290 | 298 | 290 | 294 | ||||||||||||
10.50% senior secured notes due March 1, 2021 | 1,384 | 1,179 | 1,384 | 1,204 | ||||||||||||
Total | $ | 6,005 | $ | 5,771 | $ | 6,044 | $ | 5,716 | ||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The benefit from income taxes of continuing operations for the six months ended March 31, 2015 was $3 million, as compared to the provision for income taxes of continuing operations of $27 million for the six months ended March 31, 2014. | |
The effective rate for the six months ended March 31, 2015 differs from the statutory U.S. Federal income tax rate primarily due to (1) the effect of tax rate differentials on foreign income/loss, (2) changes in the valuation allowance established against the Company’s deferred tax assets, (3) net reductions for unrecognized tax benefits resulting from the lapse of statute of limitations offset by increases due to tax positions taken during the current period, (4) recognition of a $6 million income tax benefit related to the correction of prior period valuation allowances on deferred tax assets, and (5) recognition of a $11 million income tax benefit as a result of net gains in other comprehensive income. | |
During the three months ended December 31, 2014, the Company recorded a correction to prior period valuation allowance on deferred tax assets. This adjustment decreased the provision for income taxes of continuing operations by $6 million; prior to this adjustment, the Company's provision for income taxes of continuing operations was $3 million for the six months ended March 31, 2015. The Company evaluated the correction in relation to the six months ended March 31, 2015, the expected full year results for fiscal 2015, as well as the period in which the adjustment originated, and concluded that the adjustment was not material to the current or any prior fiscal year. | |
The effective rate for the six months ended March 31, 2014 differs from the statutory U.S. federal income tax rate primarily due to (1) the effect of tax rate differentials on foreign income/loss, (2) changes in the valuation allowance established against the Company’s deferred tax assets, (3) recognition of an $8 million income tax benefit as a result of net gain in other comprehensive income, and (4) recognition of a $22 million income tax benefit as a result of net gains in income from discontinued operations. | |
During the six months ended March 31, 2015 and 2014, the Company recorded a tax charge of $11 million and $8 million, respectively, related to net gains included in other comprehensive income and during the six months ended March 31, 2014 recorded a tax charge of $22 million related to discontinued operations. As a result of the charges to other comprehensive income and discontinued operations for these tax effects the Company recognized an income tax benefit in continuing operations as less current period valuation allowance was required against the Company's deferred tax assets in each period. | |
For interim financial statement purposes, U.S. GAAP income tax expense related to ordinary income is determined by applying an estimated annual effective income tax rate against the Company's ordinary income. Income tax expense/benefit related to items not characterized as ordinary income is recognized as a discrete item when incurred. The estimation of the Company's annual effective income tax rate requires the use of management forecasts and other estimates, a projection of jurisdictional taxable income and losses, application of statutory income tax rates, and an evaluation of valuation allowances. The Company's estimated annual effective income tax rate may be revised, if necessary, in each interim period during the fiscal year. |
Benefit_Obligations
Benefit Obligations | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Benefit Obligations | ||||||||||||||||||||||||
Benefit Obligations | ||||||||||||||||||||||||
The Company sponsors non-contributory defined benefit pension plans covering a portion of its U.S. employees and retirees, and postretirement benefit plans covering a portion of its U.S. retirees that include healthcare benefits and life insurance coverage. Certain non-U.S. operations have various retirement benefit programs covering substantially all of their employees. Some of these programs are considered to be defined benefit pension plans for accounting purposes. | ||||||||||||||||||||||||
The Company froze benefit accruals and additional participation in the pension and postretirement plans for its U.S. | ||||||||||||||||||||||||
management employees effective December 31, 2003. The Company also amended the postretirement plan for its | ||||||||||||||||||||||||
U.S. management employees effective January 1, 2013, to terminate retiree dental coverage, and to cease providing | ||||||||||||||||||||||||
medical and prescription drug coverage to a retiree, dependent, or lawful spouse who has attained age 65, and effective January 1, 2015, to reduce the Company's maximum contribution toward the cost of providing benefits under the plan. | ||||||||||||||||||||||||
Effective November 25, 2013 and January 31, 2014, the Company entered into a two-year contract extensions with the Communications Workers of America (“CWA”) and the International Brotherhood of Electrical Workers (“IBEW”), respectively. With the contract extensions, the contracts with the CWA and IBEW now terminate on June 13, 2016. The contract extensions did not affect the Company's obligation for pension and postretirement benefits available to U.S. employees of the Company who are represented by the CWA or IBEW (“represented employees”). | ||||||||||||||||||||||||
The components of the pension and postretirement net periodic benefit cost (credit) for the three and six months ended March 31, 2015 and 2014 are provided in the table below: | ||||||||||||||||||||||||
Pension Benefits - | Pension Benefits - | Postretirement | ||||||||||||||||||||||
U.S. | Non-U.S. | Benefits - U.S. | ||||||||||||||||||||||
Three months ended March 31, | Three months ended March 31, | Three months ended March 31, | ||||||||||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 2 | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 34 | 37 | 4 | 6 | 5 | 5 | ||||||||||||||||||
Expected return on plan assets | (45 | ) | (42 | ) | — | (1 | ) | (3 | ) | (3 | ) | |||||||||||||
Amortization of unrecognized prior service cost | — | — | — | — | (3 | ) | (3 | ) | ||||||||||||||||
Amortization of previously unrecognized net actuarial loss | 25 | 20 | 2 | 1 | 1 | 1 | ||||||||||||||||||
Net periodic benefit cost | $ | 15 | $ | 16 | $ | 7 | $ | 8 | $ | 1 | $ | 1 | ||||||||||||
Pension Benefits - | Pension Benefits - | Postretirement | ||||||||||||||||||||||
U.S. | Non-U.S. | Benefits - U.S. | ||||||||||||||||||||||
Six months ended March 31, | Six months ended March 31, | Six months ended March 31, | ||||||||||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 3 | $ | 4 | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 68 | 73 | 8 | 11 | 10 | 11 | ||||||||||||||||||
Expected return on plan assets | (89 | ) | (84 | ) | (1 | ) | (1 | ) | (5 | ) | (6 | ) | ||||||||||||
Amortization of unrecognized prior service cost | — | — | — | — | (6 | ) | (6 | ) | ||||||||||||||||
Amortization of previously unrecognized net actuarial loss | 49 | 41 | 4 | 2 | 2 | 2 | ||||||||||||||||||
Net periodic benefit cost | $ | 30 | $ | 32 | $ | 14 | $ | 16 | $ | 2 | $ | 2 | ||||||||||||
The Company's general funding policy with respect to its U.S. qualified pension plans is to contribute amounts at least sufficient to satisfy the minimum amount required by applicable laws and regulations. For the six month period ended March 31, 2015, the Company made contributions of $37 million to satisfy minimum statutory funding requirements. Estimated payments to satisfy minimum statutory funding requirements for the remainder of fiscal 2015 are $55 million. | ||||||||||||||||||||||||
The Company provides certain pension benefits for U.S. employees, which are not pre-funded, and certain pension benefits for non-U.S. employees, the majority of which are not pre-funded. Consequently, the Company makes payments as these benefits are disbursed or premiums are paid. For the six month period ended March 31, 2015, the Company made payments for these U.S. and non-U.S. pension benefits totaling $3 million and $17 million, respectively. Estimated payments for these U.S. and non-U.S. pension benefits for the remainder of fiscal 2015 are $4 million and $9 million, respectively. | ||||||||||||||||||||||||
During the six months ended March 31, 2015, the Company contributed $8 million to the represented employees’ post-retirement health trust to fund current benefit claims and costs of administration in compliance with the terms of the agreements between the Company and the CWA and IBEW. Estimated contributions under the terms of the agreements are $16 million for the remainder of fiscal 2015. | ||||||||||||||||||||||||
The Company also provides certain retiree medical benefits for U.S. employees, which are not pre-funded. Consequently, the Company makes payments as these benefits are disbursed. For the six month period ended March 31, 2015, the Company made payments totaling $4 million for these retiree medical benefits. Estimated payments for these retiree medical benefits for the remainder of fiscal 2015 are $2 million. |
Reportable_Segments
Reportable Segments | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Reportable Segments | Reportable Segments | |||||||||||||||
Avaya conducts its business operations in three segments. Two of those segments, Global Communications Solutions (“GCS”) and Avaya Networking (“Networking”), make up Avaya’s Enterprise Collaboration Solutions (“ECS”) product portfolio. The third segment contains Avaya’s services portfolio and is called Avaya Global Services (“AGS”). | ||||||||||||||||
The GCS segment primarily develops, markets, and sells unified communications and contact center products by integrating multiple forms of communications, including telephone, e-mail, instant messaging and video. Avaya’s Networking segment’s portfolio of products offers integrated networking products which are scalable across customer enterprises. The AGS segment develops, markets and sells comprehensive end-to-end global service offerings that allow customers to evaluate, plan, design, implement, monitor, manage and optimize complex enterprise communications networks. | ||||||||||||||||
For internal reporting purposes, the Company’s chief operating decision maker makes financial decisions and allocates resources based on segment profit information obtained from the Company’s internal management systems. Management does not include in its segment measures of profitability selling, general, and administrative expenses, research and development expenses, amortization of intangible assets, and certain discrete items, such as charges relating to restructuring actions, impairment charges, and merger-related costs as these costs are not core to the measurement of segment management’s performance, but rather are controlled at the corporate level. | ||||||||||||||||
Summarized financial information relating to the Company’s reportable segments is shown in the following table: | ||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUE | ||||||||||||||||
Global Communications Solutions | $ | 440 | $ | 476 | $ | 921 | $ | 983 | ||||||||
Avaya Networking | 47 | 56 | 115 | 123 | ||||||||||||
Enterprise Collaboration Solutions | 487 | 532 | 1,036 | 1,106 | ||||||||||||
Avaya Global Services | 508 | 528 | 1,038 | 1,085 | ||||||||||||
$ | 995 | $ | 1,060 | $ | 2,074 | $ | 2,191 | |||||||||
GROSS PROFIT | ||||||||||||||||
Global Communications Solutions | $ | 289 | $ | 304 | $ | 603 | $ | 618 | ||||||||
Avaya Networking | 16 | 26 | 48 | 58 | ||||||||||||
Enterprise Collaboration Solutions | 305 | 330 | 651 | 676 | ||||||||||||
Avaya Global Services | 294 | 289 | 596 | 598 | ||||||||||||
Unallocated Amounts (1) | (7 | ) | (22 | ) | (17 | ) | (37 | ) | ||||||||
592 | 597 | 1,230 | 1,237 | |||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Selling, general and administrative | 356 | 397 | 730 | 790 | ||||||||||||
Research and development | 86 | 101 | 174 | 196 | ||||||||||||
Amortization of intangible assets | 57 | 57 | 114 | 115 | ||||||||||||
Restructuring charges, net | 10 | 42 | 25 | 49 | ||||||||||||
509 | 597 | 1,043 | 1,150 | |||||||||||||
OPERATING INCOME | 83 | — | 187 | 87 | ||||||||||||
INTEREST EXPENSE, LOSS ON EXTINGUISHMENT OF DEBT AND OTHER (EXPENSE) INCOME, NET | (111 | ) | (122 | ) | (209 | ) | (240 | ) | ||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ | (28 | ) | $ | (122 | ) | $ | (22 | ) | $ | (153 | ) | ||||
(1) | Unallocated Amounts in Gross Profit include the effect of the amortization of acquired technology intangibles and costs that are not core to the measurement of segment management’s performance, but rather are controlled at the corporate level. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 6 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss | |||||||||||||||||
The components of accumulated other comprehensive loss as of March 31, 2015 and 2014 are summarized as follows: | ||||||||||||||||||
In millions | Change in unamortized pension, postretirement and postemployment benefit-related items | Cumulative Translation | Other | Accumulated Other Comprehensive Loss | ||||||||||||||
Adjustment | ||||||||||||||||||
Balance as of October 1, 2014 | $ | (1,150 | ) | $ | (49 | ) | $ | (1 | ) | $ | (1,200 | ) | ||||||
Other comprehensive income before reclassifications | — | 76 | — | 76 | ||||||||||||||
Amounts reclassified to earnings | 35 | — | — | 35 | ||||||||||||||
Provision for income taxes | (11 | ) | — | — | (11 | ) | ||||||||||||
Balance as of March 31, 2015 | $ | (1,126 | ) | $ | 27 | $ | (1 | ) | $ | (1,100 | ) | |||||||
In millions | Change in unamortized pension, postretirement and postemployment benefit-related items | Cumulative Translation | Other | Accumulated Other Comprehensive Loss | ||||||||||||||
Adjustment | ||||||||||||||||||
Balance as of October 1, 2013 | $ | (949 | ) | $ | (56 | ) | $ | (1 | ) | $ | (1,006 | ) | ||||||
Other comprehensive loss before reclassifications | — | (16 | ) | — | (16 | ) | ||||||||||||
Amounts reclassified to earnings | 24 | — | (1 | ) | 23 | |||||||||||||
(Provision for) benefit from income taxes | (9 | ) | 1 | — | (8 | ) | ||||||||||||
Balance as of March 31, 2014 | $ | (934 | ) | $ | (71 | ) | $ | (2 | ) | $ | (1,007 | ) | ||||||
The amounts reclassified out of accumulated other comprehensive loss into the Consolidated Statements of Operations prior to the impact of income taxes, with line item location, during the three and six months ended March 31, 2015 and 2014 were as follows: | ||||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | Line item in Statements of Operations | |||||||||||||
Change in unamortized pension, postretirement and postemployment benefit-related items | $ | 4 | $ | 3 | $ | 9 | $ | 6 | Costs - Products | |||||||||
4 | 3 | 9 | 6 | Costs - Services | ||||||||||||||
7 | 6 | 14 | 10 | Selling, general and administrative | ||||||||||||||
2 | 1 | 3 | 2 | Research and development | ||||||||||||||
17 | 13 | 35 | 24 | |||||||||||||||
Other | — | (1 | ) | — | (1 | ) | Other (expense) income, net | |||||||||||
Total amounts reclassified to operations | $ | 17 | $ | 12 | $ | 35 | $ | 23 | ||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 6 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Legal Proceedings | ||||
In the ordinary course of business, the Company is involved in litigation, claims, government inquiries, investigations and proceedings, including, but not limited to, those identified below, relating to intellectual property, commercial, employment, environmental and regulatory matters. | ||||
The Company believes that it has meritorious defenses in connection with its current lawsuits and material claims and disputes, and intends to vigorously contest each of them. | ||||
Based on the Company's experience, management believes that the damages amounts claimed in a case are not a meaningful indicator of the potential liability. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of cases. | ||||
Other than as described below, in the opinion of the Company's management based upon information currently available to the Company, while the outcome of these lawsuits, claims and disputes is uncertain, the likely results of these lawsuits, claims and disputes are not expected, either individually or in the aggregate, to have a material adverse effect on the Company's financial position, results of operations or cash flows, although the effect could be material to the Company's results of operations or cash flows for any interim reporting period. | ||||
Antitrust Litigation | ||||
In 2006, the Company instituted an action in the U.S. District Court, District of New Jersey, against defendants Telecom Labs, Inc., TeamTLI.com Corp. and Continuant Technologies, Inc. (“TLI/Continuant”) and subsequently amended its complaint to include certain individual officers of these companies as defendants. Defendants purportedly provide maintenance services to customers who have purchased or leased the Company's communications equipment. The Company asserted in its amended complaint that, among other things, defendants, or each of them, engaged in tortious conduct by improperly accessing and utilizing the Company's proprietary software, including passwords, logins and maintenance service permissions, to perform certain maintenance services on the Company's customers' equipment. TLI/Continuant filed counterclaims against the Company alleging that the Company has violated the Sherman Act's prohibitions against anticompetitive conduct through the manner in which the Company sells its products and services. TLI/Continuant sought to recover the profits they claim they would have earned from maintaining Avaya's products, and asked for injunctive relief prohibiting the conduct they claim is anticompetitive. | ||||
The trial commenced on September 9, 2013. On January 8, 2014, the Court issued an opinion dismissing the Company's affirmative claims. With respect to TLI/Continuant’s counterclaims, on March 27, 2014, a jury found against the Company on two of eight claims and awarded damages of $20 million. Under the federal antitrust laws, the jury’s award is subject to automatic trebling, or $60 million. | ||||
Following the jury verdict, TLI/Continuant sought an injunction regarding the Company’s ongoing business operations. On June 30, 2014, a federal judge rejected the demands of TLI/Continuant’s proposed injunction and stated that “only a narrow injunction is appropriate.” Instead, the judge issued an order relating to customers who purchased an Avaya PBX system between January 1, 1990 and April 30, 2008 only. Those customers and their agents will have free access to the on demand maintenance commands that were installed on their systems at the time of the purchase transaction. The court specified that this right “does not extend to access on a system purchased after April 30, 2008.” Consequently, the injunction affects only systems sold prior to April 30, 2008. The judge denied all other requests TLI/Continuant made in its injunction filing. The Company is complying with the injunction. | ||||
The Company and TLI/Continuant filed post-trial motions seeking to overturn the jury’s verdict, which motions were denied. In September 2014, the Court entered judgment in the amount of $63 million, which included the jury's award of $20 million, subject to automatic trebling, or $60 million, plus prejudgment interest in the amount of $3 million. On October 10, 2014, the Company filed a Notice of Appeal, and on October 23, 2014, TLI/Continuant filed a Notice of Conditional Cross-Appeal. On October 23, 2014, the Company filed its supersedeas bond with the Court in the amount of $63 million, which includes an amount for post-judgment interest and stays execution of the judgment while the matter is on appeal. The Company secured posting of the bond through the issuance of a letter of credit under its existing credit facilities. On November 10, 2014, TLI/Continuant made an application for attorney's fees, expenses and costs, which the Company is contesting. TLI/Continuant’s current application for attorneys’ fees, expenses and costs is approximately $65 million and represents activity through September 11, 2014. Once the initial application is resolved by the Court, the Company expects that TLI/Continuant will make a supplemental application for activity beyond September 11, 2014. Once required, and in order to stay the enforcement of any award for attorney’s fees, expenses and costs, on appeal or otherwise, the Company will post a bond in the amount of the award for attorney’s fees, expenses and costs, plus interest. The Company expects to secure posting of the bond through existing resources and may use any or a combination of the issuance of one or more letters of credit under its existing credit facilities and cash on hand. | ||||
The Company continues to believe that TLI/Continuant's claims are without merit and unsupported by the facts and law, and the Company intends to defend this matter, including by filing its appeal to the United States Court of Appeals for the Third Circuit. The Company expects to file its initial appellate brief with the Third Circuit in May 2015, and briefing by the parties is scheduled to continue through September 2015. No loss reserve has been provided for this matter. | ||||
In the event TLI/Continuant ultimately succeed on appeal, any potential loss could be material. At this time an outcome cannot be predicted and, as a result, the Company cannot be assured that this case will not have a material adverse effect on the manner in which it does business, its financial position, results of operations, or cash flows. | ||||
Intellectual Property and Commercial Disputes | ||||
In the ordinary course of business, the Company is involved in litigation alleging it has infringed upon third parties’ intellectual property rights, including patents and copyrights; some litigation may involve claims for infringement against customers, distributors and resellers by third parties relating to the use of Avaya’s products, as to which the Company may provide indemnifications of varying scope to certain parties. The Company is also involved in litigation pertaining to general commercial disputes with customers, suppliers, vendors and other third parties including royalty disputes. These matters are on-going and the outcomes are subject to inherent uncertainties. As a result, the Company cannot be assured that any such matter will not have a material adverse effect on its financial position, results of operations or cash flows. | ||||
Other | ||||
In October 2009, a group of former employees of Avaya’s former Shreveport, Louisiana manufacturing facility brought suit in Louisiana state court, naming as defendants Alcatel-Lucent USA, Inc., Lucent Technologies Services Company, Inc., and AT&T Technologies, Inc. The former employees allege hearing loss due to hazardous noise exposure from the facility dating back over forty years, and stipulate that the total amount of each individual’s damages does not exceed fifty thousand dollars. In February 2010 plaintiffs amended their complaint to add the Company as a named defendant. There are 101 plaintiffs in the case. The Louisiana Supreme Court has been presented a legal issue in a different case not involving the Company that could impact the outcome of this case; as a result, the trial court has stayed this matter pending resolution of the Supreme Court decision. At this time an outcome cannot be predicted however, because the amounts of the claims individually and in the aggregate are not material, the Company believes the outcome of this matter will not have a material adverse effect on the manner in which it does business, its financial position, results of operations, or cash flows. | ||||
General | ||||
The Company records accruals for legal contingencies to the extent that it has concluded it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. No estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made at this time regarding the matters specifically described above because the inherently unpredictable nature of legal proceedings may be exacerbated by various factors, including: (i) the damages sought in the proceedings are unsubstantiated or indeterminate; (ii) discovery is not complete; (iii) the proceeding is in its early stages; (iv) the matters present legal uncertainties; (v) there are significant facts in dispute; (vi) there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants); or (vii) there is a wide range of potential outcomes. | ||||
Product Warranties | ||||
The Company recognizes a liability for the estimated costs that may be incurred to remedy certain deficiencies of quality or performance of the Company’s products. These product warranties extend over a specified period of time generally ranging up to two years from the date of sale depending upon the product subject to the warranty. The Company accrues a provision for estimated future warranty costs based upon the historical relationship of warranty claims to sales. The Company periodically reviews the adequacy of its product warranties and adjusts, if necessary, the warranty percentage and accrued warranty reserve, which is included in other current and non-current liabilities in the Consolidated Balance Sheets, for actual experience. | ||||
In millions | ||||
Balance as of October 1, 2014 | $ | 13 | ||
Reductions for payments and costs to satisfy claims | (6 | ) | ||
Accruals for warranties issued during the period | 4 | |||
Balance as of March 31, 2015 | $ | 11 | ||
Guarantees of Indebtedness and Other Off-Balance Sheet Arrangements | ||||
Letters of Credit | ||||
As of March 31, 2015, the Company had outstanding an aggregate of $178 million in irrevocable letters of credit which ensure the Company's performance or payment to third parties. Included in this amount is $146 million issued under its $535 million committed revolving credit facilities, which facilities are available through October 26, 2016. Also included is $32 million of letters of credit issued under uncommitted facilities. | ||||
Surety Bonds | ||||
The Company arranges for the issuance of various types of surety bonds, such as license, permit, bid and performance bonds, which are agreements under which the surety company guarantees that the Company will perform in accordance with contractual or legal obligations. These bonds vary in duration although most are issued and outstanding from three months to three years. These bonds are backed by $71 million of the Company’s letters of credit and include the $63 million supersedeas bond filed with the Court in the TLI/Continuant matter discussed above. If the Company fails to perform under its obligations, the maximum potential payment under these surety bonds is $76 million as of March 31, 2015. Historically, no surety bonds have been drawn upon. | ||||
Purchase Commitments and Termination Fees | ||||
The Company purchases components from a variety of suppliers and uses several contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and to help assure adequate component supply, the Company enters into agreements with contract manufacturers and suppliers that allow them to produce and procure inventory based upon forecasted requirements provided by the Company. If the Company does not meet these specified purchase commitments, it could be required to purchase the inventory, or in the case of certain agreements, pay an early termination fee. Historically, the Company has not been required to pay a charge for not meeting its designated purchase commitments with these suppliers, but has been obligated to purchase certain excess inventory levels from its outsourced manufacturers due to actual sales of product varying from forecast and due to transition of manufacturing from one vendor to another. | ||||
The Company’s outsourcing agreements with its most significant contract manufacturers automatically renew in July and September for successive periods of twelve months each, subject to specific termination rights for the Company and the contract manufacturers. All manufacturing of the Company’s products is performed in accordance with either detailed requirements or specifications and product designs furnished by the Company, and is subject to rigorous quality control standards. | ||||
Long-Term Cash Incentive Bonus Plan | ||||
Parent has established a long-term incentive cash bonus plan (“LTIP”). Under the LTIP, Parent will make cash awards available to compensate certain key employees upon the achievement of defined returns on the Sponsors’ initial investment in the Parent (a “triggering event”). Parent has authorized LTIP awards covering a total of $60 million, of which $25 million in awards were outstanding as of March 31, 2015. The Company will begin to recognize compensation expense relative to the LTIP awards upon the occurrence of a triggering event (e.g., a sale or initial public offering). As of March 31, 2015, no compensation expense associated with the LTIP has been recognized. | ||||
Credit Facility Indemnification | ||||
In connection with its obligations under the credit facilities described in Note 8, “Financing Arrangements,” the Company has agreed to indemnify the third-party lending institutions for costs incurred by the institutions related to changes in tax law or other legal requirements. While there have been no amounts paid to the lenders pursuant to this indemnity in the past, there can be no assurance that the Company will not be obligated to indemnify the lenders under this arrangement in the future. As of March 31, 2015, no amounts have been accrued pursuant to this indemnity. | ||||
Transactions with Alcatel-Lucent | ||||
Pursuant to the Contribution and Distribution Agreement effective October 1, 2000, Lucent Technologies, Inc. (now Alcatel-Lucent) contributed to the Company substantially all of the assets, liabilities and operations associated with its enterprise networking businesses (the “Company’s Businesses”) and distributed the Company’s stock pro-rata to the shareholders of Lucent (“distribution”). The Contribution and Distribution Agreement, among other things, provides that, in general, the Company will indemnify Alcatel-Lucent for all liabilities including certain pre-distribution tax obligations of Alcatel-Lucent relating to the Company’s Businesses and all contingent liabilities primarily relating to the Company’s Businesses or otherwise assigned to the Company. In addition, the Contribution and Distribution Agreement provides that certain contingent liabilities not allocated to one of the parties will be shared by Alcatel-Lucent and the Company in prescribed percentages. The Contribution and Distribution Agreement also provides that each party will share specified portions of contingent liabilities based upon agreed percentages related to the business of the other party that exceed $50 million. The Company is unable to determine the maximum potential amount of other future payments, if any, that it could be required to make under this agreement. | ||||
The Tax Sharing Agreement governs Alcatel-Lucent’s and the Company’s respective rights, responsibilities and obligations after the distribution with respect to taxes for the periods ending on or before the distribution. Generally, pre-distribution taxes or benefits that are clearly attributable to the business of one party will be borne solely by that party, and other pre-distribution taxes or benefits will be shared by the parties based on a formula set forth in the Tax Sharing Agreement. The Company may be subject to additional taxes or benefits pursuant to the Tax Sharing Agreement related to future settlements of audits by state and local and foreign taxing authorities for the periods prior to the Company’s separation from Alcatel-Lucent. |
Divestiture_of_Government_IT_P1
Divestiture of Government IT Professional Services Business (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Summarized Financial Information Related to Discontinued Operations | Summarized financial information relating to the Company's discontinued operations are as follows: | |||||||
In millions | Three months ended March 31, 2014 | Six months ended March 31, 2014 | ||||||
SERVICES REVENUE | $ | 26 | $ | 53 | ||||
OPERATING INCOME FROM DISCONTINUED OPERATIONS | $ | 3 | $ | 7 | ||||
Gain on sale of ITPS business | 49 | 49 | ||||||
INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | 52 | $ | 56 | |||||
Provision for income taxes from discontinued operations | (25 | ) | (26 | ) | ||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | $ | 27 | $ | 30 | ||||
Supplementary_Financial_Inform1
Supplementary Financial Information (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Supplementary Financial Information [Abstract] | ||||||||||||||||
Schedule of Additional Financial Information | Supplementary Financial Information | |||||||||||||||
Supplemental Operations Information | ||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | ||||||||||||
OTHER (EXPENSE) INCOME, NET | ||||||||||||||||
Interest income | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||
(Loss) gain on foreign currency transactions | (1 | ) | (2 | ) | 5 | — | ||||||||||
Third party fees incurred in connection with debt modifications | — | (2 | ) | — | (2 | ) | ||||||||||
Venezuela hyperinflationary and devaluation charges | — | (2 | ) | — | (2 | ) | ||||||||||
Change in certain tax indemnifications | — | 3 | 9 | 3 | ||||||||||||
Other, net | (1 | ) | — | (2 | ) | (1 | ) | |||||||||
Total other (expense) income, net | $ | (1 | ) | $ | (2 | ) | $ | 13 | $ | (1 | ) | |||||
Business_Restructuring_Reserve1
Business Restructuring Reserves And Programs (Tables) | 6 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fiscal 2015 Restructuring Program [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Schedule of Restructuring and Related Costs | The following table summarizes the components of the fiscal 2015 restructuring program during the six months ended March 31, 2015: | |||||||||||
In millions | Employee | Lease | Total | |||||||||
Separation | Obligations | |||||||||||
Costs | ||||||||||||
2015 restructuring charges | $ | 18 | $ | 1 | $ | 19 | ||||||
Cash payments | (7 | ) | — | (7 | ) | |||||||
Impact of foreign currency fluctuations | (1 | ) | — | (1 | ) | |||||||
Balance as of March 31, 2015 | $ | 10 | $ | 1 | $ | 11 | ||||||
Fiscal 2014 Restructuring Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Schedule of Restructuring and Related Costs | following table summarizes the components of the fiscal 2014 restructuring program during the six months ended March 31, 2015: | |||||||||||
In millions | Employee | Lease | Total | |||||||||
Separation | Obligations | |||||||||||
Costs | ||||||||||||
Balance as of October 1, 2014 | $ | 115 | $ | 7 | $ | 122 | ||||||
Cash payments | (17 | ) | (2 | ) | (19 | ) | ||||||
Adjustments (1) | — | 2 | 2 | |||||||||
Impact of foreign currency fluctuations | (14 | ) | — | (14 | ) | |||||||
Balance as of March 31, 2015 | $ | 84 | $ | 7 | $ | 91 | ||||||
Fiscal 2008-2011 Restructuring Programs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Schedule of Restructuring and Related Costs | following table aggregates the remaining components of the fiscal 2008 through 2013 restructuring programs during the six months ended March 31, 2015: | |||||||||||
In millions | Employee | Lease | Total | |||||||||
Separation | Obligations | |||||||||||
Costs | ||||||||||||
Balance as of October 1, 2014 | $ | 9 | $ | 74 | $ | 83 | ||||||
Cash payments | (5 | ) | (10 | ) | (15 | ) | ||||||
Adjustments (1) | 1 | 3 | 4 | |||||||||
Impact of foreign currency fluctuations | (2 | ) | (7 | ) | (9 | ) | ||||||
Balance as of March 31, 2015 | $ | 3 | $ | 60 | $ | 63 | ||||||
(1) | Included in adjustments are changes in estimates, whereby all increases and decreases in costs related to the fiscal 2009 through 2013 restructuring programs are recorded to the restructuring charges line item in operating expenses in the period of the adjustment. Included in adjustments are changes in estimates whereby all increases in costs related to the fiscal 2008 restructuring reserve are recorded in the restructuring charges line item in operating expenses in the period of the adjustments and decreases in costs are recorded as adjustments to goodwill. |
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of Long-term Debt Instruments | : | |||||||||||||||
March 31, | September 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
In millions | Principal Amount | Net of Discounts and Issuance Costs | Principal Amount | Net of Discounts and Issuance costs | ||||||||||||
Variable rate senior secured multi-currency asset-based revolving credit facility due October 26, 2016 | $ | 40 | $ | 40 | $ | 40 | $ | 40 | ||||||||
Variable rate senior secured multi-currency revolver due October 26, 2016 | 70 | 69 | 90 | 88 | ||||||||||||
Variable rate senior secured term B-3 loans due October 26, 2017 | 2,090 | 2,071 | 2,102 | 2,079 | ||||||||||||
Variable rate senior secured term B-4 loans due October 26, 2017 | 1 | 1 | 1 | 1 | ||||||||||||
Variable rate senior secured term B-6 loans due March 31, 2018 | 1,121 | 1,109 | 1,128 | 1,113 | ||||||||||||
7% senior secured notes due April 1, 2019 | 1,009 | 998 | 1,009 | 996 | ||||||||||||
9% senior secured notes due April 1, 2019 | 290 | 285 | 290 | 285 | ||||||||||||
10.50% senior secured notes due March 1, 2021 | 1,384 | 1,366 | 1,384 | 1,366 | ||||||||||||
Total debt | $ | 6,005 | 5,939 | $ | 6,044 | 5,968 | ||||||||||
Debt maturing within one year | (19 | ) | (19 | ) | ||||||||||||
Non-current portion of long-term debt | $ | 5,920 | $ | 5,949 | ||||||||||||
Schedule of Maturities of Long-term Debt | ual maturities of long-term debt for the next five years ending September 30 and thereafter consist of: | |||||||||||||||
In millions | ||||||||||||||||
Remainder of fiscal 2015 | $ | 19 | ||||||||||||||
2016 | 38 | |||||||||||||||
2017 | 148 | |||||||||||||||
2018 | 3,117 | |||||||||||||||
2019 | 1,299 | |||||||||||||||
2020 and thereafter | 1,384 | |||||||||||||||
Total | $ | 6,005 | ||||||||||||||
Ca |
Derivatives_And_Other_Financia1
Derivatives And Other Financial Instruments (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | following table summarizes the estimated fair value of the foreign currency forward contracts: | ||||||||
In millions | |||||||||
Balance Sheet Location | March 31, 2015 | September 30, 2014 | |||||||
Other current assets | $ | 1 | $ | — | |||||
Other current liabilities | (1 | ) | (2 | ) | |||||
Net Asset (Liability) | $ | — | $ | (2 | ) | ||||
Fair_Value_Measures_Tables
Fair Value Measures (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ||||||||||||||||
Fair Value, by Balance Sheet Grouping | The estimated fair values of the amounts borrowed under the Company’s credit agreements at March 31, 2015 and September 30, 2014 are as follows: | |||||||||||||||
March 31, 2015 | September 30, 2014 | |||||||||||||||
In millions | Principal | Fair | Principal | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Variable rate senior secured multi-currency asset-based revolving credit facility due October 26, 2016 | $ | 40 | $ | 38 | $ | 40 | $ | 38 | ||||||||
Variable rate senior secured multi-currency revolver due October 26, 2016 | 70 | 68 | 90 | 86 | ||||||||||||
Variable rate senior secured term B-3 loans due October 26, 2017 | 2,090 | 2,063 | 2,102 | 2,002 | ||||||||||||
Variable rate senior secured term B-4 loans due October 26, 2017 | 1 | 1 | 1 | 1 | ||||||||||||
Variable rate senior secured term B-6 loans due March 31, 2018 | 1,121 | 1,118 | 1,128 | 1,116 | ||||||||||||
7% senior secured notes due April 1, 2019 | 1,009 | 1,006 | 1,009 | 975 | ||||||||||||
9% senior secured notes due April 1, 2019 | 290 | 298 | 290 | 294 | ||||||||||||
10.50% senior secured notes due March 1, 2021 | 1,384 | 1,179 | 1,384 | 1,204 | ||||||||||||
Total | $ | 6,005 | $ | 5,771 | $ | 6,044 | $ | 5,716 | ||||||||
Benefit_Obligations_Tables
Benefit Obligations (Tables) | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Net Benefit Costs | ||||||||||||||||||||||||
Pension Benefits - | Pension Benefits - | Postretirement | ||||||||||||||||||||||
U.S. | Non-U.S. | Benefits - U.S. | ||||||||||||||||||||||
Six months ended March 31, | Six months ended March 31, | Six months ended March 31, | ||||||||||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 3 | $ | 4 | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 68 | 73 | 8 | 11 | 10 | 11 | ||||||||||||||||||
Expected return on plan assets | (89 | ) | (84 | ) | (1 | ) | (1 | ) | (5 | ) | (6 | ) | ||||||||||||
Amortization of unrecognized prior service cost | — | — | — | — | (6 | ) | (6 | ) | ||||||||||||||||
Amortization of previously unrecognized net actuarial loss | 49 | 41 | 4 | 2 | 2 | 2 | ||||||||||||||||||
Net periodic benefit cost | $ | 30 | $ | 32 | $ | 14 | $ | 16 | $ | 2 | $ | 2 | ||||||||||||
The |
Reportable_Segments_Tables
Reportable Segments (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Summarized financial information relating to the Company’s reportable segments is shown in the following table: | |||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUE | ||||||||||||||||
Global Communications Solutions | $ | 440 | $ | 476 | $ | 921 | $ | 983 | ||||||||
Avaya Networking | 47 | 56 | 115 | 123 | ||||||||||||
Enterprise Collaboration Solutions | 487 | 532 | 1,036 | 1,106 | ||||||||||||
Avaya Global Services | 508 | 528 | 1,038 | 1,085 | ||||||||||||
$ | 995 | $ | 1,060 | $ | 2,074 | $ | 2,191 | |||||||||
GROSS PROFIT | ||||||||||||||||
Global Communications Solutions | $ | 289 | $ | 304 | $ | 603 | $ | 618 | ||||||||
Avaya Networking | 16 | 26 | 48 | 58 | ||||||||||||
Enterprise Collaboration Solutions | 305 | 330 | 651 | 676 | ||||||||||||
Avaya Global Services | 294 | 289 | 596 | 598 | ||||||||||||
Unallocated Amounts (1) | (7 | ) | (22 | ) | (17 | ) | (37 | ) | ||||||||
592 | 597 | 1,230 | 1,237 | |||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Selling, general and administrative | 356 | 397 | 730 | 790 | ||||||||||||
Research and development | 86 | 101 | 174 | 196 | ||||||||||||
Amortization of intangible assets | 57 | 57 | 114 | 115 | ||||||||||||
Restructuring charges, net | 10 | 42 | 25 | 49 | ||||||||||||
509 | 597 | 1,043 | 1,150 | |||||||||||||
OPERATING INCOME | 83 | — | 187 | 87 | ||||||||||||
INTEREST EXPENSE, LOSS ON EXTINGUISHMENT OF DEBT AND OTHER (EXPENSE) INCOME, NET | (111 | ) | (122 | ) | (209 | ) | (240 | ) | ||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ | (28 | ) | $ | (122 | ) | $ | (22 | ) | $ | (153 | ) | ||||
(1) | Unallocated Amounts in Gross Profit include the effect of the amortization of acquired technology intangibles and costs that are not core to the measurement of segment management’s performance, but rather are controlled at the corporate level. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ||||||||||||||||||||||||||||||||||
In millions | Change in unamortized pension, postretirement and postemployment benefit-related items | Cumulative Translation | Other | Accumulated Other Comprehensive Loss | In millions | Change in unamortized pension, postretirement and postemployment benefit-related items | Cumulative Translation | Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
Adjustment | Adjustment | |||||||||||||||||||||||||||||||||
Balance as of October 1, 2014 | $ | (1,150 | ) | $ | (49 | ) | $ | (1 | ) | $ | (1,200 | ) | Balance as of October 1, 2013 | $ | (949 | ) | $ | (56 | ) | $ | (1 | ) | $ | (1,006 | ) | |||||||||
Other comprehensive income before reclassifications | — | 76 | — | 76 | Other comprehensive loss before reclassifications | — | (16 | ) | — | (16 | ) | |||||||||||||||||||||||
Amounts reclassified to earnings | 35 | — | — | 35 | Amounts reclassified to earnings | 24 | — | (1 | ) | 23 | ||||||||||||||||||||||||
Provision for income taxes | (11 | ) | — | — | (11 | ) | (Provision for) benefit from income taxes | (9 | ) | 1 | — | (8 | ) | |||||||||||||||||||||
Balance as of March 31, 2015 | $ | (1,126 | ) | $ | 27 | $ | (1 | ) | $ | (1,100 | ) | Balance as of March 31, 2014 | $ | (934 | ) | $ | (71 | ) | $ | (2 | ) | $ | (1,007 | ) | ||||||||||
Schedule of Comprehensive Income (Loss) [Table Text Block] | ||||||||||||||||||||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||||||||||
In millions | 2015 | 2014 | 2015 | 2014 | Line item in Statements of Operations | |||||||||||||||||||||||||||||
Change in unamortized pension, postretirement and postemployment benefit-related items | $ | 4 | $ | 3 | $ | 9 | $ | 6 | Costs - Products | |||||||||||||||||||||||||
4 | 3 | 9 | 6 | Costs - Services | ||||||||||||||||||||||||||||||
7 | 6 | 14 | 10 | Selling, general and administrative | ||||||||||||||||||||||||||||||
2 | 1 | 3 | 2 | Research and development | ||||||||||||||||||||||||||||||
17 | 13 | 35 | 24 | |||||||||||||||||||||||||||||||
Other | — | (1 | ) | — | (1 | ) | Other (expense) income, net | |||||||||||||||||||||||||||
Total amounts reclassified to operations | $ | 17 | $ | 12 | $ | 35 | $ | 23 | ||||||||||||||||||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 6 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Product Warranty Liability | ||||
In millions | ||||
Balance as of October 1, 2014 | $ | 13 | ||
Reductions for payments and costs to satisfy claims | (6 | ) | ||
Accruals for warranties issued during the period | 4 | |||
Balance as of March 31, 2015 | $ | 11 | ||
Background_Merger_And_Basis_Of1
Background, Merger And Basis Of Presentation (Details) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 18, 2009 | Jun. 05, 2012 | Apr. 01, 2014 | Mar. 31, 2014 |
Partner | |||||
segments | |||||
General Disclosures [Line Items] | |||||
Number of Operating Segments | 3 | ||||
Number of channel partners worldwide | 11,100 | ||||
Nortel Networks | |||||
General Disclosures [Line Items] | |||||
Business Combination, Consideration Transferred | $933 | ||||
RADVISION Ltd | Parent Company [Member] | |||||
General Disclosures [Line Items] | |||||
Business Combination, Consideration Transferred | 230 | ||||
Product Portfolio [Member] | |||||
General Disclosures [Line Items] | |||||
Number of Operating Segments | 2 | ||||
government IT Professional Services business [Member] | |||||
General Disclosures [Line Items] | |||||
Proceeds from Divestiture of Businesses | 101 | 98 | |||
Gain (Loss) on Disposition of Business | 3 | ||||
Business Acquisition, Cost of Acquired Entity, Transaction Costs | 2 |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements Details (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Other Current Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | $13 |
Other Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | $42 |
Business_Combinations_Narrativ
Business Combinations Narrative (Details) (Series of Individually Immaterial Business Acquisitions [Member], USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $10 |
Divestiture_of_Government_IT_P2
Divestiture of Government IT Professional Services Business (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Provision for) benefit from income taxes from discontinued operations | $22 | |||
Income from discontinued operations, net of income taxes | 0 | 27 | 0 | 30 |
Avaya Gov [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Services Revenue | 26 | 53 | ||
(Provision for) benefit from income taxes from discontinued operations | -25 | -26 | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $3 | $7 |
Divestiture_of_Government_IT_P3
Divestiture of Government IT Professional Services Business Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 01, 2014 | Jul. 31, 2014 | Sep. 30, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Third party fees incurred in connection with debt modifications | $0 | $2 | $0 | $2 | |||
Venezuela Hyperinflationary and Devaluation Charges | 0 | 2 | 0 | 2 | |||
Goodwill | 4,053 | 4,053 | 4,047 | ||||
government IT Professional Services business [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Divestiture of Businesses | 101 | 98 | |||||
Business Acquisition, Cost of Acquired Entity, Transaction Costs | 2 | 2 | |||||
Gain (Loss) on Disposition of Business | 3 | ||||||
Avaya Gov [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 3 | 7 | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 49 | 49 | |||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 52 | 56 | |||||
Technology Business Unit (TBU) [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Divestiture of Businesses | $26 |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 4,053 | $4,047 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, economic life | 5 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, economic life | 15 years |
Supplementary_Financial_Inform2
Supplementary Financial Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||||
Third party fees incurred in connection with debt modifications | $0 | $2 | $0 | $2 |
Venezuela Hyperinflationary and Devaluation Charges | 0 | 2 | 0 | 2 |
OTHER (EXPENSE) INCOME, NET | ||||
Interest income | 1 | 1 | 1 | 1 |
(Loss) gain on foreign currency transactions | -1 | -2 | 5 | 0 |
Change in certain tax indemnifications | 0 | 3 | 9 | 3 |
Other, net | -1 | 0 | -2 | -1 |
Total other (expense) income, net | ($1) | ($2) | $13 | ($1) |
Business_Restructuring_Reserve2
Business Restructuring Reserves And Programs Restructuring Reserve (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 |
Position | Position | |||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | $10 | $42 | $25 | $49 | $165 | $26 | ||
Fiscal 2014 Restructuring Program [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance as of October 1, 2012 | 122 | |||||||
Cash payments | -19 | |||||||
Adjustments (1) | 2 | |||||||
Impact of foreign currency fluctuations | -14 | |||||||
Balance as of March 31, 2015 | 91 | 91 | ||||||
Fiscal 2008-2013 Restructuring Programs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance as of October 1, 2012 | 83 | |||||||
Cash payments | -15 | |||||||
Adjustments (1) | 4 | |||||||
Impact of foreign currency fluctuations | -9 | |||||||
Balance as of March 31, 2015 | 63 | 63 | ||||||
Fiscal 2015 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | 19 | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Cash payments | -7 | |||||||
Impact of foreign currency fluctuations | -1 | |||||||
Balance as of March 31, 2015 | 11 | 11 | ||||||
Employee Separation Costs | Fiscal 2014 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | 18 | 155 | ||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance as of October 1, 2012 | 115 | |||||||
Cash payments | -17 | |||||||
Adjustments (1) | 0 | |||||||
Impact of foreign currency fluctuations | -14 | |||||||
Balance as of March 31, 2015 | 84 | 84 | 115 | 115 | ||||
Employee Separation Costs | Fiscal 2008-2013 Restructuring Programs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance as of October 1, 2012 | 9 | |||||||
Cash payments | -5 | |||||||
Adjustments (1) | 1 | |||||||
Impact of foreign currency fluctuations | -2 | |||||||
Balance as of March 31, 2015 | 3 | 3 | ||||||
Employee Separation Costs | Fiscal 2015 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | 18 | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Cash payments | -7 | |||||||
Impact of foreign currency fluctuations | -1 | |||||||
Balance as of March 31, 2015 | 10 | 10 | ||||||
Lease Obligations | Fiscal 2014 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | 9 | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance as of October 1, 2012 | 7 | |||||||
Cash payments | -2 | |||||||
Adjustments (1) | 2 | |||||||
Impact of foreign currency fluctuations | 0 | |||||||
Balance as of March 31, 2015 | 7 | 7 | 7 | 7 | ||||
Lease Obligations | Fiscal 2008-2013 Restructuring Programs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Balance as of October 1, 2012 | 74 | |||||||
Cash payments | -10 | |||||||
Adjustments (1) | 3 | |||||||
Impact of foreign currency fluctuations | -7 | |||||||
Balance as of March 31, 2015 | 60 | 60 | ||||||
Lease Obligations | Fiscal 2015 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | 1 | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Cash payments | 0 | |||||||
Impact of foreign currency fluctuations | 0 | |||||||
Balance as of March 31, 2015 | 1 | 1 | ||||||
US Enhanced Separation Program [Member] | Employee Separation Costs | Fiscal 2014 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | 10 | |||||||
EMEA approved plan [Member] | Employee Separation Costs | Fiscal 2014 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges, net | $39 | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | 165 | 121 |
Business_Restructuring_Reserve3
Business Restructuring Reserves And Programs (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 |
Position | Position | |||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | $10 | $42 | $25 | $49 | $165 | $26 | ||
Employee Separation Costs | Fiscal 2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 18 | 155 | ||||||
Lease Obligations | Fiscal 2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 9 | |||||||
US Enhanced Separation Program [Member] | Employee Separation Costs | Fiscal 2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 172 | |||||||
EMEA approved plan [Member] | Employee Separation Costs | Fiscal 2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 39 | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | 165 | 121 | ||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Depreciation, Additional Expense | 35 | |||||||
EMEA approved plan [Member] | Employee Separation Costs | Fiscal 2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 123 | |||||||
US Voluntary Program [Member] | Employee Separation Costs | Fiscal 2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 24 | |||||||
US Enhanced Separation Program [Member] | Employee Separation Costs | Fiscal 2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | $10 |
Financing_Arrangements_Schedul
Financing Arrangements (Schedule of long term debt) (Details) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 | 15-May-14 |
In Millions, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $6,005 | ||
Debt maturing within one year | -19 | -19 | |
Long-term debt | 5,920 | 5,949 | |
Unsecured Debt | 9.75% senior unsecured cash pay notes due 2015 | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 58 | ||
Unsecured Debt | 10.125%/10.875% senior unsecured PIK toggle notes due 2015 | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 92 | ||
Reported Value Measurement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 6,005 | 6,044 | |
Reported Value Measurement [Member] | Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 40 | 40 | |
Reported Value Measurement [Member] | Secured Debt | Senior Secured Multi-Currency Revolver | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 70 | 90 | |
Reported Value Measurement [Member] | Secured Debt | Senior secured term B-3 loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 2,090 | 2,102 | |
Reported Value Measurement [Member] | Secured Debt | Senior secured term B-4 loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 1 | 1 | |
Reported Value Measurement [Member] | Secured Debt | Senior Secured Term B-6 Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 1,121 | 1,128 | |
Reported Value Measurement [Member] | Secured Debt | 10.50% Senior secured notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 1,384 | 1,384 | |
Reported Value Measurement [Member] | Secured Debt | Senior secured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 1,009 | 1,009 | |
Reported Value Measurement [Member] | Secured Debt | 9% Senior secured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 290 | 290 | |
Portion at Other than Fair Value Measurement [Member] | |||
Debt Instrument [Line Items] | |||
Debt maturing within one year | -19 | -19 | |
Long-term debt | 5,920 | 5,949 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 40 | 40 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | Senior Secured Multi-Currency Revolver | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 69 | 88 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | Senior secured term B-3 loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 2,071 | 2,079 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | Senior secured term B-4 loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 1 | 1 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | Senior Secured Term B-6 Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 1,109 | 1,113 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | 10.50% Senior secured notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 1,366 | 1,366 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | Senior secured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | 998 | 996 | |
Portion at Other than Fair Value Measurement [Member] | Secured Debt | 9% Senior secured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, current and noncurrent portions | $285 | $285 |
Financing_Arrangements_Maturit
Financing Arrangements (Maturity profile) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Remainder of fiscal 2013 | $19 |
2015 | 38 |
2016 | 148 |
2017 | 3,117 |
2018 and thereafter | 1,299 |
Long-term Debt of Registrant, Maturities, Repayments of Principal in Rolling after Year Five | 1,384 |
Long-term debt, current and noncurrent portions | $6,005 |
Financing_Arrangements_Narrati
Financing Arrangements (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | 15-May-14 | Feb. 05, 2014 | Sep. 30, 2014 | Aug. 20, 2014 | |
Debt Instrument [Line Items] | ||||||||
Gains (Losses) on Extinguishment of Debt | $0 | ($4,000,000) | $0 | ($4,000,000) | ||||
Long-term Debt, Gross | 6,005,000,000 | 6,005,000,000 | ||||||
Debt, Weighted Average Interest Rate | 6.90% | 6.90% | 6.90% | |||||
Sale Leaseback Transaction, Financing Capacity | 24,000,000 | |||||||
Proceeds from sale-leaseback transactions | 15,000,000 | 0 | ||||||
Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Issuance Cost | 2,000,000 | |||||||
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of Credit Outstanding, Amount | 120,000,000 | 120,000,000 | 79,000,000 | |||||
Proceeds from borrowings under multi-currency revolver | 40,000,000 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 104,000,000 | 104,000,000 | 110,000,000 | |||||
Secured Debt | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | 150,000,000 | ||||||
Line of Credit Facility, Borrowing Base, Percentage Of Eligible Accounts Receivable Included In Calculation | 85.00% | |||||||
Line of Credit, Borrowing Base, Percentage Of Eligible Inventory Liquidation Value Included In Calculation | 85.00% | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 115,000,000 | 115,000,000 | 207,000,000 | |||||
Secured Debt | Senior Secured Multi-Currency Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | 200,000,000 | ||||||
Letters of Credit Outstanding, Amount | 26,000,000 | 26,000,000 | 0 | |||||
Proceeds from borrowings under multi-currency revolver | 50,000,000 | 0 | 100,000,000 | |||||
Secured Debt | Senior secured term B-3 loans | Base Rate Borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 33500000000.00% | |||||||
Secured Debt | Senior Secured Term B-6 Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from Issuance of Long-term Debt | 0 | 1,136,000,000 | 1,138,000,000 | |||||
Unsecured Debt | 10.125%/10.875% senior unsecured PIK toggle notes due 2015 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.88% | 10.88% | ||||||
Long-term Debt | 92,000,000 | |||||||
Unsecured Debt | 9.75% senior unsecured cash pay notes due 2015 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.75% | 9.75% | ||||||
Long-term Debt | 58,000,000 | |||||||
Unsecured Debt | Senior Unsecured Cash Interest Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.13% | 10.13% | ||||||
Other current liabilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Capital lease obligations | 62,000,000 | 62,000,000 | 59,000,000 | |||||
Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt, amount | 150,000,000 | |||||||
Repayments of debt | 10,000,000 | |||||||
AvayaPrivateCloudServicesbusiness [Member] | Other current liabilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Capital lease obligations | 46,000,000 | 46,000,000 | 40,000,000 | |||||
Reported Value Measurement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 6,005,000,000 | 6,005,000,000 | 6,044,000,000 | |||||
Reported Value Measurement [Member] | Variable rate senior secured multi-currency revolver [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Fair Value Disclosure | 70,000,000 | 70,000,000 | 90,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 40,000,000 | 40,000,000 | 40,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | Senior Secured Multi-Currency Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 70,000,000 | 70,000,000 | 90,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | Senior secured term B-3 loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 2,090,000,000 | 2,090,000,000 | 2,102,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | Senior secured term B-4 loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | Senior Secured Term B-6 Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 1,121,000,000 | 1,121,000,000 | 1,128,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | 9% Senior secured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 290,000,000 | 290,000,000 | 290,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | Senior secured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 1,009,000,000 | 1,009,000,000 | 1,009,000,000 | |||||
Reported Value Measurement [Member] | Secured Debt | 10.50% Senior secured notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | $1,384,000,000 | $1,384,000,000 | 1,384,000,000 |
Derivatives_And_Other_Financia2
Derivatives And Other Financial Instruments (Gains & losses on interest rate contracts qualifying and designated as cash flow hedging instruments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassified from accumulated other comprehensive loss into interest expense | $110 | $116 | $222 | $235 |
Derivatives_And_Other_Financia3
Derivatives And Other Financial Instruments (Estimated fair value of derivatives) (Details) (Foreign currency forward contracts, Designated as hedging instrument, USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Net liability | $0 | ($2) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net liability | 1 | 0 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net liability | ($1) | ($2) |
Derivatives_And_Other_Financia4
Derivatives And Other Financial Instruments (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Oct. 03, 2012 |
Other Income [Member] | Foreign currency forward contracts | |||||
Derivative [Line Items] | |||||
Gain (loss) on foreign currency contracts included in other income (expense) | $3 | $2 | ($1) | $2 | |
Unified Communications Solutions Provider [Member] | |||||
Derivative [Line Items] | |||||
Notes Receivable, Related Parties, Noncurrent | $10 |
Fair_Value_Measures_Assets_and
Fair Value Measures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 | Oct. 31, 2011 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | $4,053 | $4,047 | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | |||
Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes Receivable, Related Parties, Noncurrent | 8 | ||
Recurring | Other assets, non-current | Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 1 | 1 | |
Recurring | Foreign currency forward contracts | Other current assets | Derivative assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 1 | ||
Recurring | Foreign currency forward contracts | Other current liabilities | Derivative liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities, Fair Value Disclosure | 1 | 2 | |
Quoted prices in active markets for identical instruments (Level 1) | Recurring | Other assets, non-current | Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 1 | 1 | |
Quoted prices in active markets for identical instruments (Level 1) | Recurring | Foreign currency forward contracts | Other current assets | Derivative assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | ||
Quoted prices in active markets for identical instruments (Level 1) | Recurring | Foreign currency forward contracts | Other current liabilities | Derivative liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities, Fair Value Disclosure | 0 | 0 | |
Significant other observable inputs (Level 2) | Recurring | Other assets, non-current | Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Significant other observable inputs (Level 2) | Recurring | Foreign currency forward contracts | Other current liabilities | Derivative liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities, Fair Value Disclosure | 1 | 2 | |
Significant unobservable inputs (Level 3) | Recurring | Other assets, non-current | Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Significant unobservable inputs (Level 3) | Recurring | Foreign currency forward contracts | Other current assets | Derivative assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | ||
Significant unobservable inputs (Level 3) | Recurring | Foreign currency forward contracts | Other current liabilities | Derivative liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities, Fair Value Disclosure | $0 | $0 |
Fair_Value_Measures_Fair_Value
Fair Value Measures (Fair Value of Financial Instruments) (Details) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 | 15-May-14 |
In Millions, unless otherwise specified | |||
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $6,005 | $6,044 | |
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 40 | 40 | |
Secured Debt | Senior Secured Multi-Currency Revolver | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 70 | 90 | |
Secured Debt | Senior secured term B-3 loans | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 2,090 | 2,102 | |
Secured Debt | Senior secured term B-4 loans | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 1 | 1 | |
Secured Debt | Senior Secured Term B-6 Loans | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 1,121 | 1,128 | |
Secured Debt | Senior secured notes | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 1,009 | 1,009 | |
Secured Debt | 9% Senior secured notes | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 290 | 290 | |
Secured Debt | 10.50% Senior secured notes [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 1,384 | 1,384 | |
Unsecured Debt | 9.75% senior unsecured cash pay notes due 2015 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 58 | ||
Unsecured Debt | 10.125%/10.875% senior unsecured PIK toggle notes due 2015 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $92 |
Fair_Value_Measures_Fair_Value1
Fair Value Measures (Fair Value, Other Disclosures) (Details) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 | Oct. 31, 2011 | Oct. 03, 2012 |
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Goodwill | $4,053 | $4,047 | ||
Notes Receivable, Related Parties, Stated Interest Rate Percentage | 1.65% | |||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 5,771 | 5,716 | ||
Senior Secured Multi-Currency Asset-Based Revolver [Member] | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 38 | 38 | ||
Senior secured notes | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 1,006 | 975 | ||
9% Senior secured notes | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 298 | 294 | ||
10.50% Senior secured notes [Member] | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 1,179 | 1,204 | ||
Senior Secured Multi-Currency Revolver [Member] | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 68 | 86 | ||
Senior Secured Term B-3 Loans [Member] | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 2,063 | 2,002 | ||
Senior Secured Term B-4 Loans [Member] | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 1 | 1 | ||
Senior Secured Term B-6 Loans [Member] | Estimate of Fair Value Measurement [Member] | Secured Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Fair Value Disclosure | 1,118 | 1,116 | ||
Unified Communications Solutions Provider | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Receivable, Related Parties, Noncurrent | 10 | |||
Unified Communications Solutions Provider | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Receivable, Related Parties, Noncurrent | 9 | 9 | ||
Unified Communications Solutions Provider | Advance to Parent due October 3, 2015 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Receivable, Related Parties, Stated Interest Rate Percentage | 1.85% | |||
Other Assets | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Receivable, Related Parties, Noncurrent | 8 | |||
Other Assets | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Receivable, Related Parties, Noncurrent | 7 | 6 | ||
Fair Value, Measurements, Recurring [Member] | Investments [Member] | Other Non-Current Assets [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, Fair Value Disclosure | 1 | 1 | ||
Fair Value, Measurements, Recurring [Member] | Foreign currency forward contracts | Derivative assets | Other current assets | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, Fair Value Disclosure | 1 | |||
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical instruments (Level 1) | Investments [Member] | Other Non-Current Assets [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, Fair Value Disclosure | 1 | 1 | ||
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical instruments (Level 1) | Foreign currency forward contracts | Derivative assets | Other current assets | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, Fair Value Disclosure | 0 | |||
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical instruments (Level 1) | Foreign currency forward contracts | Derivative Financial Instruments, Liabilities [Member] | Other Current Liabilities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | Investments [Member] | Other Non-Current Assets [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) | Foreign currency forward contracts | Derivative Financial Instruments, Liabilities [Member] | Other Current Liabilities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1 | 2 | ||
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Investments [Member] | Other Non-Current Assets [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Foreign currency forward contracts | Derivative assets | Other current assets | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, Fair Value Disclosure | 0 | |||
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) | Foreign currency forward contracts | Derivative Financial Instruments, Liabilities [Member] | Other Current Liabilities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Derivative Financial Instruments, Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency forward contracts | Other Liabilities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $1 | $2 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Loss Carryforwards [Line Items] | ||||
(Provision for) benefit from income taxes | ($6) | $1 | ($3) | $27 |
Other Comprehensive Income (Loss), Tax | 11 | 8 | ||
Other Income Tax Expense (Benefit), Continuing Operations | 11 | |||
Income Tax Expense Benefit Before Prior Period Adjustment | -3 | |||
Discontinued Operation, Tax Effect of Discontinued Operation | $22 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Error Corrections and Prior Period Adjustments, Interim Periods of Fiscal Year | 6 |
Benefit_Obligations_Details
Benefit Obligations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Benefits - U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $37 | |||
Estimated future employer contributions in current fiscal year | 55 | |||
Benefits paid | 3 | |||
Expected future benefit payments, remainder of fiscal year | 4 | 4 | ||
Components of Net Periodic Benefit Cost | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 34 | 37 | 68 | 73 |
Expected return on plan assets | -45 | -42 | -89 | -84 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 | 0 |
Amortization of previously unrecognized net actuarial loss | 25 | 20 | 49 | 41 |
Net periodic benefit cost | 15 | 16 | 30 | 32 |
Pension Benefits - Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | 17 | |||
Expected future benefit payments, remainder of fiscal year | 9 | 9 | ||
Components of Net Periodic Benefit Cost | ||||
Service cost | 1 | 2 | 3 | 4 |
Interest cost | 4 | 6 | 8 | 11 |
Expected return on plan assets | 0 | -1 | -1 | -1 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 | 0 |
Amortization of previously unrecognized net actuarial loss | 2 | 1 | 4 | 2 |
Net periodic benefit cost | 7 | 8 | 14 | 16 |
Postretirement Benefits - U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated future employer contributions in current fiscal year | 16 | |||
Benefits paid | 4 | |||
Expected future benefit payments, remainder of fiscal year | 2 | 2 | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 8 | |||
Components of Net Periodic Benefit Cost | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 5 | 5 | 10 | 11 |
Expected return on plan assets | -3 | -3 | -5 | -6 |
Amortization of unrecognized prior service cost | -3 | -3 | -6 | -6 |
Amortization of previously unrecognized net actuarial loss | 1 | 1 | 2 | 2 |
Net periodic benefit cost | $1 | $1 | $2 | $2 |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | ||
segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of Operating Segments | 3 | |||||||
REVENUE | $995 | $1,060 | $2,074 | $2,191 | ||||
GROSS PROFIT | 592 | 597 | 1,230 | 1,237 | ||||
Selling, general and administrative | 356 | 397 | 730 | 790 | ||||
Research and development | 86 | 101 | 174 | 196 | ||||
Amortization of intangible assets | 57 | 57 | 114 | 115 | ||||
Restructuring charges, net | 10 | 42 | 25 | 49 | 165 | 26 | ||
TOTAL OPERATING EXPENSES | 509 | 597 | 1,043 | 1,150 | ||||
OPERATING INCOME | 83 | 0 | 187 | 87 | ||||
INTEREST EXPENSE, LOSS ON EXTINGUISHMENT OF DEBT AND OTHER (EXPENSE) INCOME, NET | -111 | -122 | -209 | -240 | ||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -28 | -122 | -22 | -153 | ||||
Global Communications Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
REVENUE | 440 | 476 | 921 | 983 | ||||
GROSS PROFIT | 289 | 304 | 603 | 618 | ||||
Avaya Networking | ||||||||
Segment Reporting Information [Line Items] | ||||||||
REVENUE | 47 | 56 | 115 | 123 | ||||
GROSS PROFIT | 16 | 26 | 48 | 58 | ||||
Enterprise Collaboration Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
REVENUE | 487 | 532 | 1,036 | 1,106 | ||||
GROSS PROFIT | 305 | 330 | 651 | 676 | ||||
Avaya Global Services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
REVENUE | 508 | 528 | 1,038 | 1,085 | ||||
GROSS PROFIT | 294 | 289 | 596 | 598 | ||||
Unallocated Amounts (1) | ||||||||
Segment Reporting Information [Line Items] | ||||||||
GROSS PROFIT | ($7) | ($22) | ($17) | [1] | ($37) | [1] | ||
[1] | )B Unallocated Amounts in Gross Profit include the effect of the amortization of acquired technology intangibles and costs that are not core to the measurement of segment managementbs performance, but rather are controlled at the corporate level. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | ($934) | ($1,150) | ($949) | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | -71 | -49 | -56 | |
Accumulated Other Comprehensive Income (Loss) Other | -2 | -1 | -1 | |
Accumulated other comprehensive loss | -1,007 | -1,200 | -1,006 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 0 | 0 | ||
Other comprehensive loss before reclassifications | 17 | 13 | 35 | 24 |
Other Comprehensive Income (Loss), Net of Tax | 0 | -1 | 0 | -1 |
Other Comprehensive Income (Loss), Tax | -11 | -9 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 76 | -16 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 1 | ||
Other Comprehensive Income (Loss), Other, Before Reclassification and Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Other, Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), before Tax | 17 | 12 | 35 | 23 |
Other Comprehensive Income (Loss), Before Reclassification and Tax | 76 | -16 | ||
Other Comprehensive Income (Loss), Tax | -11 | -8 | ||
Accumulated other comprehensive loss | -1,100 | -1,100 | ||
Other Comprehensive Income (Loss), Other, Before Tax | 0 | -1 | ||
Accumulated Other Comprehensive Income (Loss) Other | -1 | -1 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 27 | 27 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | -1,126 | -1,126 | ||
Cost of Goods, Product Line [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive loss before reclassifications | 4 | 3 | 9 | 6 |
Cost of Services [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive loss before reclassifications | 4 | 3 | 9 | 6 |
Selling, General and Administrative Expenses [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive loss before reclassifications | 7 | 6 | 14 | 10 |
Research and Development Expense [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive loss before reclassifications | $2 | $1 | $3 | $2 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Movement in product warranty liability) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Movement in product warranty liability: | |
Balance as of October 1, 2014 | $13 |
Reductions for payments and costs to satisfy claims | 6 |
Accruals for warranties issued during the period | 4 |
Balance as of March 31, 2015 | $11 |
General length of product warranty, maximum | 2 years |
Commitments_And_Contingencies_2
Commitments And Contingencies (Commitments and Contingencies, other disclosures) (Details) (USD $) | 6 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended |
Mar. 31, 2015 | Sep. 30, 2013 | Nov. 10, 2014 | Sep. 30, 2014 | |
plaintiffs | ||||
Loss Contingencies [Line Items] | ||||
Product Warranty Maximum Duration | 2 years | |||
Letters of credit backing surety bonds, amount | $71,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Value of Shares Authorized | 60,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Value of Shares Outstanding | 25,000,000 | |||
Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Maximum potential payout under surety bonds | 76,000,000 | |||
Indemnification Agreement | ||||
Loss Contingencies [Line Items] | ||||
Threshold amount of Contribution And Distribution Agreement | 50,000,000 | |||
Minimum | Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Surety bonds duration | 3 months | |||
Maximum | Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Surety bonds duration | 3 years | |||
Standby Letters of Credit | ||||
Loss Contingencies [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 178,000,000 | |||
Revolving Credit Facility | ||||
Loss Contingencies [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 535,000,000 | |||
Long-term Line of Credit | 146,000,000 | |||
Uncommitted Facilities | ||||
Loss Contingencies [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 32,000,000 | |||
Antitrust Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Damages Awarded, Value | 20,000,000 | |||
Loss Contingency, Damages Awarded, Value Trebled | 60,000,000 | |||
Hazardous Noise Exposure Litigation By Former Employees | ||||
Loss Contingencies [Line Items] | ||||
Litigation, number of plaintiffs | 101 | |||
Hazardous Noise Exposure Litigation By Former Employees | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Damages Sought, Value | 50,000 | |||
Pending Litigation [Member] | Antitrust Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Actions Taken by Plaintiff | 3 | |||
Loss Contingency, Damages Sought, Value | 65,000,000 | |||
Settled Litigation [Member] | Antitrust Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation Settlement, Amount | ($63,000,000) |