Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2015 | Feb. 09, 2016 | |
Document And Entity Information [Abstract] | ||
Document Period End Date | Dec. 31, 2015 | |
Entity Registrant Name | AVAYA INC | |
Entity Central Index Key | 1,116,521 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUE | ||
Products | $ 464 | $ 549 |
Services | 494 | 530 |
TOTAL REVENUES | 958 | 1,079 |
Products: | ||
Costs (exclusive of amortization of acquired technology intangible assets) | 164 | 203 |
Amortization of acquired technology intangible assets | 8 | 9 |
Services | 207 | 229 |
TOTAL COST OF REVENUE | 379 | 441 |
GROSS PROFIT | 579 | 638 |
OPERATING EXPENSES | ||
Selling, general and administrative | 333 | 374 |
Research and development | 75 | 88 |
Amortization of acquired intangible assets | 57 | 57 |
Restructuring charges, net | 23 | 15 |
TOTAL OPERATING EXPENSES | 488 | 534 |
OPERATING INCOME | 91 | 104 |
Interest expense | (118) | (112) |
Other income, net | 4 | 14 |
(LOSS) INCOME BEFORE INCOME TAXES | (23) | 6 |
Provision for income taxes | (4) | (3) |
NET (LOSS) INCOME | $ (27) | $ 3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (27) | $ 3 |
Other comprehensive income: | ||
Pension, postretirement and postemployment benefit-related items, net of provision for income taxes of $0 and $1 for the three months ended December 31, 2015 and 2014, respectively | 15 | 17 |
Cumulative translation adjustment | 9 | 10 |
Other comprehensive income | 24 | 27 |
Comprehensive (loss) income | $ (3) | $ 30 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Pension, postretirement and postemployment benefit plans, tax | $ 0 | $ 1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 344 | $ 323 |
Accounts receivable, net | 628 | 678 |
Inventory | 172 | 174 |
Deferred income taxes, net | 31 | 26 |
Other current assets | 204 | 171 |
TOTAL CURRENT ASSETS | 1,379 | 1,372 |
Property, plant and equipment, net | 280 | 282 |
Deferred income taxes, net | 32 | 34 |
Acquired intangible assets, net | 904 | 970 |
Goodwill | 4,073 | 4,074 |
Other assets | 124 | 130 |
TOTAL ASSETS | 6,792 | 6,862 |
Current liabilities: | ||
Debt maturing within one year | 25 | 7 |
Accounts payable | 372 | 379 |
Payroll and benefit obligations | 200 | 229 |
Deferred revenue | 665 | 665 |
Business restructuring reserve, current portion | 87 | 90 |
Other current liabilities | 293 | 282 |
TOTAL CURRENT LIABILITIES | 1,642 | 1,652 |
Long-term debt | 5,956 | 5,960 |
Pension obligations | 1,642 | 1,690 |
Other postretirement obligations | 183 | 194 |
Deferred income taxes, net | 265 | 262 |
Business restructuring reserve, non-current portion | 64 | 67 |
Other liabilities | 417 | 415 |
TOTAL NON-CURRENT LIABILITIES | $ 8,527 | $ 8,588 |
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 | 2,985 | 2,981 |
Accumulated deficit | (5,002) | (4,975) |
Accumulated other comprehensive loss | (1,360) | (1,384) |
TOTAL STOCKHOLDER'S DEFICIENCY | (3,377) | (3,378) |
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIENCY | $ 6,792 | $ 6,862 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
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 Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | ||
NET (LOSS) INCOME | $ (27) | $ 3 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 93 | 94 |
Share-based compensation | 4 | 7 |
Amortization of debt issuance costs | 3 | 3 |
Accretion of debt discount | 2 | 1 |
Deferred income taxes, net | (4) | (6) |
Unrealized gain on foreign currency exchange | (5) | (13) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 50 | 42 |
Inventory | 2 | 3 |
Accounts payable | (5) | (3) |
Payroll and benefit obligations | (56) | (35) |
Business restructuring reserve | (2) | (3) |
Deferred revenue | 7 | (1) |
Other assets and liabilities | (7) | (28) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 55 | 64 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (26) | (33) |
Acquisition of businesses, net of cash acquired | (7) | (3) |
Proceeds from sale of long-lived assets | 2 | 0 |
Proceeds from sale-leaseback transactions | 0 | 12 |
Other investing activities, net | 1 | 2 |
NET CASH USED FOR INVESTING ACTIVITIES | (32) | (26) |
FINANCING ACTIVITIES: | ||
Repayment of long-term debt | (6) | (9) |
Payments related to sale-leaseback transactions | (2) | (2) |
Other financing activities, net | (1) | (1) |
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 6 | (22) |
Effect of exchange rate changes on cash and cash equivalents | (8) | (10) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 21 | 6 |
Cash and cash equivalents at beginning of period | 323 | |
Cash and cash equivalents at end of period | 344 | |
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | ||
FINANCING ACTIVITIES: | ||
Proceeds from Domestic ABL | 70 | 0 |
Repayments of Secured Debt | (55) | 0 |
Secured Debt | Senior Secured Multi-Currency Revolver | ||
FINANCING ACTIVITIES: | ||
Proceeds from Domestic ABL | 0 | 20 |
Repayment of Domestic ABL | $ 0 | $ (30) |
Background, Merger And Basis Of
Background, Merger And Basis Of Presentation | 3 Months Ended |
Dec. 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 including distributors, service providers, dealers, value-added resellers, system integrators and business partners that provide sales and service support. Merger On June 4, 2007, Avaya entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Avaya Holdings Corp. (formerly Sierra Holdings Corp.), a Delaware corporation (“Parent”), and Sierra Merger Corp., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which Merger Sub was merged with and into the Company, with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent (the “Merger”). Parent was formed by affiliates of two private equity firms, Silver Lake Partners (“Silver Lake”) and TPG Capital (“TPG”) (collectively, the “Sponsors”), solely for the purpose of entering into the Merger Agreement and consummating 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”), a global provider of videoconferencing and telepresence technologies over internet protocol (“IP”) and wireless networks for $230 million in cash. Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements as of December 31, 2015 and for the three months ended December 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, 2015 , which were included in the Company’s Annual Report on Form 10-K filed with the SEC on November 23, 2015. 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. Certain prior period amounts have been reclassified to conform to the current period's presentation. 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 Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 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 2016, the Company adopted Accounting Standards Update ("ASU") No. 2015-01 "Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." The standard eliminated the concept of extraordinary items. The adoption of this standard did not have a material effect on the Company's Consolidated Financial Statements. Recent Accounting Guidance Not Yet Effective In November 2015, the Financial Accounting Standards Board ("FASB") issued ASU No. 2015-17 "Income Taxes: Balance Sheet Classification of Deferred Taxes." The standard simplifies the Balance Sheet presentation of deferred income tax assets and liabilities requiring them to be classified as noncurrent. This accounting guidance is effective for the Company in the first quarter of fiscal 2018 with early adoption permitted. The ASU may be applied retrospectively to each reporting period presented or prospectively in the year of adoption. The Company is currently evaluating the method of adoption and the impact that the adoption of this accounting guidance may have on its Consolidated Financial Statements. In January 2016, the FASB issued ASU No. 2016-1 "Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities." The standard requires that all equity securities with readily determinable fair values, except for those accounted for under the equity method, be measured at fair value with changes reported in net income. This standard is effective for the Company by means of a cumulative adjustment to the balance sheet in the first quarter of fiscal 2019 and is not expected to have a material effect on its Consolidated Financial Statements. |
Business Restructuring Reserves
Business Restructuring Reserves And Programs | 3 Months Ended |
Dec. 31, 2015 | |
Restructuring Reserve [Abstract] | |
Business Restructuring Reserves and Programs | Business Restructuring Reserve and Programs Fiscal 2016 Restructuring Program During fiscal 2016, the Company is continuing to identify opportunities to streamline operations and generate costs savings which included eliminating employee positions. During the three months ended December 31, 2015 , the Company recognized restructuring charges of $23 million , net of adjustments to the restructuring programs of prior fiscal years. These charges are primarily for employee separation costs associated with fiscal 2016 employee severance actions in Europe, Middle East and Africa ("EMEA"), for which the related payments are expected to be completed in fiscal 2020. 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 opportunities to streamline its operations, it may identify cost savings globally and take additional restructuring actions in the future and the costs of those actions could be material. The following table summarizes the components of the fiscal 2016 restructuring program during the three months ended December 31, 2015 : In millions Employee Separation Costs Lease Obligations Total Fiscal 2016 restructuring program charges $ 23 $ — $ 23 Cash payments (3 ) — (3 ) Impact of foreign currency fluctuations 1 — 1 Balance as of December 31, 2015 $ 21 $ — $ 21 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. Restructuring charges recorded during fiscal 2015 associated with these initiatives, net of adjustments to previous periods, were $62 million . These charges included employee separation costs of $52 million primarily associated with employee severance actions in the U.S. and 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. The following table summarizes the components of the fiscal 2015 restructuring program during the three months ended December 31, 2015 : In millions Employee Separation Costs Lease Obligations Total Balance as of October 1, 2015 $ 31 $ 2 $ 33 Cash payments (10 ) — (10 ) Adjustments (1) (1 ) — (1 ) Balance as of December 31, 2015 $ 20 $ 2 $ 22 (1) Included in adjustments are changes in estimates, whereby all increases and decreases in costs related to the fiscal 2015 restructuring program were recorded to the restructuring charges line item in operating expenses in the period of the adjustment. Fiscal 2008 through 2014 Restructuring Programs During fiscal years 2008 through 2014, the Company identified opportunities to streamline operations and generate cost savings which included exiting facilities and eliminating employee positions. The remaining obligation for employee separation costs are primarily associated with EMEA plans approved in the third and fourth quarters of fiscal 2014 for which the related payments are expected to be completed in fiscal 2019. The EMEA plans include, but are not limited to, social pension fund payments and healthcare and unemployment insurance costs to be paid to or on behalf of the affected employees. 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 2022. These remaining obligations are primarily associated with the Frankfurt, Germany facility vacated during fiscal 2014, as well as facilities vacated in the United Kingdom and the U.S. The following table aggregates the remaining components of the fiscal 2008 through 2014 restructuring programs during the three months ended December 31, 2015 : In millions Employee Separation Costs Lease Obligations Total Balance as of October 1, 2015 $ 64 $ 60 $ 124 Cash payments (8 ) (5 ) (13 ) Adjustments (1) — 1 1 Impact of foreign currency fluctuations (2 ) (2 ) (4 ) Balance as of December 31, 2015 $ 54 $ 54 $ 108 (1) Included in adjustments are changes in estimates, whereby all increases and decreases in costs related to the fiscal 2009 through 2014 restructuring programs were recorded to the restructuring charges line item in operating expenses in the period of the adjustments. Included in adjustments were 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 were recorded as adjustments to goodwill. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Dec. 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) a senior secured credit facility (the "Senior Secured Credit Agreement"), (b) a senior unsecured credit facility, which later became senior unsecured notes, and (c) a senior secured asset-based revolving credit facility (the "Domestic ABL"). The Senior Secured Credit Agreement consists of senior secured term loans and a senior secured multi-currency revolver. The financing arrangements were subsequently amended through a series of refinancing transactions and in connection with the acquisition of NES discussed in Note 1, "Background, Merger and Basis of Presentation". During fiscal 2015 , the Company entered into several refinancing transactions which extended the maturity dates of certain existing debt and provided for a new senior secured foreign asset-based revolving credit facility. On May 29, 2015, Avaya Inc. entered into Amendment No. 9 to the Senior Secured Credit Agreement pursuant to which the Company refinanced a portion of the senior secured term B-3 loans ("term B-3 loans"), senior secured term B-4 loans ("term B-4 loans") and senior secured term B-6 loans ("term B-6 loans") in exchange for and with the proceeds from the issuance of $2,125 million in principal amount of senior secured term B-7 loans ("term B-7 loans") maturing May 29, 2020. On June 4, 2015, Avaya Inc. entered into Amendment No. 4 to the Domestic ABL which, among other things: (i) extended the stated maturity of the facility from October 26, 2016 to June 4, 2020 (subject to certain conditions specified in the Domestic ABL), (ii) increased the sublimit for letter of credit issuances under the Domestic ABL from $150 million to $200 million , and (iii) amended certain covenants and other provisions of the existing agreement. At the same time, Avaya Inc. and certain foreign subsidiaries of the Company (the "Foreign Borrowers") entered into a new senior secured foreign asset-based revolving credit facility (the "Foreign ABL") which matures June 4, 2020 (subject to certain conditions specified in the Foreign ABL). Available credit under the Domestic ABL remains $335 million subject to availability under the borrowing base. Available credit under the Foreign ABL is $150 million subject to availability under the respective borrowing bases of the Foreign Borrowers. At December 31, 2015 and September 30, 2015 , the Company had aggregate outstanding borrowings of $70 million and $55 million , in addition to $114 million and $119 million of issued and outstanding letters of credit with aggregate remaining revolver availability of $108 million and $83 million , respectively, under the Domestic ABL. At December 31, 2015 and September 30, 2015 , the Company had aggregate outstanding borrowings of $20 million and $20 million , in addition to $22 million and $22 million of issued and outstanding letters of credit with aggregate remaining revolver availability of $88 million and $101 million , respectively, under the Foreign ABL. On June 5, 2015, the Company permanently reduced the senior secured multi-currency revolver from $200 million to $18 million and all letters of credit under the Senior Secured Credit Agreement were transferred to the Domestic ABL. At December 31, 2015 and September 30, 2015 , the Company had aggregate outstanding borrowings of $18 million and $18 million , respectively, under the senior secured multi-currency revolver. The weighted average contractual interest rate of the Company’s outstanding debt as of December 31, 2015 and September 30, 2015 was 7.3% and 7.3% , respectively. The effective interest rate of each obligation is not materially different than its contractual interest rate. Principal amounts of long term debt and long term debt net of discounts and issuance costs consisted of the following: December 31, 2015 September 30, 2015 In millions Principal Amount Net of Discounts and Issuance Costs Principal Amount Net of Discounts and Issuance Costs Variable rate revolving loans under the Senior Secured Credit Agreement due October 26, 2016 $ 18 $ 18 $ 18 $ 18 Variable rate revolving loans under the Domestic ABL due June 4, 2020 70 70 55 55 Variable rate revolving loans under the Foreign ABL due June 4, 2020 20 20 20 20 Variable rate term B-3 loans due October 26, 2017 616 612 616 611 Variable rate term B-4 loans due October 26, 2017 1 1 1 1 Variable rate term B-6 loans due March 31, 2018 537 533 537 532 Variable rate term B-7 loans due May 29, 2020 2,106 2,073 2,112 2,077 7% senior secured notes due April 1, 2019 1,009 1,000 1,009 999 9% senior secured notes due April 1, 2019 290 286 290 286 10.50% senior secured notes due March 1, 2021 1,384 1,368 1,384 1,368 Total debt $ 6,051 5,981 $ 6,042 5,967 Debt maturing within one year (25 ) (7 ) Non-current portion of long-term debt $ 5,956 $ 5,960 Annual maturities of the principal amounts of our long-term debt for the next five years ending September 30 and thereafter consist of: In millions Remainder of fiscal 2016 $ 19 2017 43 2018 1,179 2019 1,324 2020 2,102 2021 and thereafter 1,384 Total $ 6,051 Capital Lease Obligations Included in other liabilities is $61 million and $61 million of capital lease obligations, net of imputed interest as of December 31, 2015 and September 30, 2015 , 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 three months ended December 31, 2014 , the Company received proceeds of $12 million in connection with the sale of equipment used in the performance of services under this agreement. As of December 31, 2015 and September 30, 2015 , capital lease obligations associated with this agreement were $46 million and $48 million , respectively. |
Derivatives And Other Financial
Derivatives And Other Financial Instruments | 3 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Other Financial Instruments | The Company utilizes foreign currency forward contracts primarily to hedge fluctuations associated with certain monetary assets and liabilities, including accounts receivable, accounts payable, and certain intercompany obligations. These foreign currency forward contracts are not designated for hedge accounting treatment. Changes in fair value of these contracts are recorded as a component of other income, net to offset the change in the value of the underlying foreign currency denominated assets and liabilities. The gains and (losses) of the foreign currency forward contracts included in other income, net were $3 million and $(4) million for the three months ended December 31, 2015 and 2014 , respectively. |
Fair Value Measures
Fair Value Measures | 3 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Fair Value Measures Pursuant to the accounting guidance for fair value measurements, 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 December 31, 2015 and September 30, 2015 were as follows: December 31, 2015 September 30, 2015 Fair Value Measurements Using Fair Value Measurements Using In millions Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Other Non-Current Assets: Investments $ 1 $ 1 $ — $ — $ 1 $ 1 $ — $ — Other Current Liabilities: Foreign currency forward contracts $ — $ — $ — $ — $ 1 $ — $ 1 $ — 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 1 assets and liabilities are priced using quoted market prices for identical assets in active markets that are observable. 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. The estimated fair values of the amounts borrowed under the Company's revolving credit facilities 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 December 31, 2015 and September 30, 2015 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 Company’s debt at December 31, 2015 and September 30, 2015 were as follows: December 31, 2015 September 30, 2015 In millions Principal Amount Fair Value Principal Amount Fair Value Variable rate revolving loans under the Senior Secured Credit Agreement due October 26, 2016 $ 18 $ 16 $ 18 $ 17 Variable rate revolving loans under the Domestic ABL due June 4, 2020 70 62 55 42 Variable rate revolving loans under the Foreign ABL due June 4, 2020 20 17 20 15 Variable rate term B-3 loans due October 26, 2017 616 478 616 532 Variable rate term B-4 loans due October 26, 2017 1 1 1 1 Variable rate term B-6 loans due March 31, 2018 537 408 537 461 Variable rate term B-7 loans due May 29, 2020 2,106 1,488 2,112 1,666 7% senior secured notes due April 1, 2019 1,009 759 1,009 800 9% senior secured notes due April 1, 2019 290 221 290 242 10.50% senior secured notes due March 1, 2021 1,384 474 1,384 644 Total $ 6,051 $ 3,924 $ 6,042 $ 4,420 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the three months ended December 31, 2015 and 2014 was $4 million and $3 million , respectively. The effective income tax rate for the three months ended December 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, and (3) net increases due to tax positions taken during the current period offset by reductions for unrecognized tax benefits resulting from the lapse of statute of limitations. The effective income tax rate for the three months ended December 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) reductions in the Company's unrecognized tax benefits resulting from the settlement of certain international tax exams, (4) recognition of a $1 million income tax benefit as a result of net gains in other comprehensive income, and (5) recognition of a $6 million income tax benefit related to the correction of prior period valuation allowance on deferred tax assets. During the three months ended December 31, 2014 , the Company recorded a correction to the prior period valuation allowance on deferred tax assets which decreased the provision for income taxes by $6 million . Prior to this adjustment the Company's provision for income taxes was $9 million for the three months ended December 31, 2014 . The Company evaluated the correction in relation to the three months ended December 31, 2014 , the full year results for fiscal 2014, as well as the periods in which the adjustment originated, and concluded that the adjustment is not material to this period or any prior quarter or year. For interim financial statement purposes, 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 | 3 Months Ended |
Dec. 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 subsequently amended the postretirement benefit plan for its U.S. management employees as follows: 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; effective January 1, 2015, to reduce the Company's maximum contribution toward the cost of providing benefits under the plan; and effective January 1, 2016, to replace coverage through the Company’s group plan with coverage through the private insurance marketplace. The latest amendment will allow retirees to choose insurance from the marketplace while still receiving financial support from the Company toward the cost of coverage through a Health Reimbursement Arrangement. Effective November 25, 2013 and January 31, 2014, the Company entered into a two-year contract extension with the Communications Workers of America (“CWA”) and the International Brotherhood of Electrical Workers (“IBEW”), respectively. With the contract extension, the contract with the CWA and the contract with the 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"). Effective October 1, 2015, the Company changed its estimate of the service and interest cost components of net periodic benefit cost for its U.S. pension and other postretirement benefit plans. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows. The new estimate provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s U.S. pension and postretirement benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively. For fiscal 2016, the change in estimate is expected to reduce U.S. pension and postretirement net periodic benefit plan cost by $30 million to $35 million when compared to the prior estimate. The components of the pension and postretirement net periodic benefit cost (credit) for the three months ended December 31, 2015 and 2014 are provided in the table below: Pension Benefits - U.S. Pension Benefits - Non-U.S. Postretirement Benefits - U.S. Three months ended December 31, Three months ended December 31, Three months ended December 31, In millions 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost (credit) Service cost $ 1 $ 1 $ 1 $ 2 $ — $ — Interest cost 28 34 3 4 3 5 Expected return on plan assets (46 ) (44 ) — (1 ) (2 ) (2 ) Amortization of unrecognized prior service cost — — — — (5 ) (3 ) Amortization of previously unrecognized net actuarial loss 22 24 2 2 1 1 Net periodic benefit cost (credit) $ 5 $ 15 $ 6 $ 7 $ (3 ) $ 1 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 law and regulations. For the three month period ended December 31, 2015 , the Company made contributions of $18 million to satisfy minimum statutory funding requirements. Estimated payments to satisfy minimum statutory funding requirements for the remainder of fiscal 2016 are $70 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 three month period ended December 31, 2015 , the Company made payments for these U.S. and non-U.S. pension benefits totaling $2 million and $3 million , respectively. Estimated payments for these U.S. and non-U.S. pension benefits for the remainder of fiscal 2016 are $5 million and $23 million , respectively. During the three months ended December 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 2009 agreements between the Company and the CWA and IBEW, as extended through June 13, 2016. Estimated contributions under the terms of the 2009 agreements are $26 million for the remainder of fiscal 2016 . 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 three months ended December 31, 2015 , the Company made payments totaling $2 million for these retiree medical benefits. Estimated payments for these retiree medical benefits for the remainder of fiscal 2016 are $2 million . |
Reportable Segments
Reportable Segments | 3 Months Ended |
Dec. 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 develops, markets, and sells unified communications and contact center products by integrating multiple forms of communications, including telephony, e-mail, instant messaging and video. The 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 cloud and managed 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 December 31, In millions 2015 2014 REVENUE Global Communications Solutions $ 414 $ 481 Avaya Networking 50 68 Enterprise Collaboration Solutions 464 549 Avaya Global Services 494 530 $ 958 $ 1,079 GROSS PROFIT Global Communications Solutions $ 283 $ 314 Avaya Networking 16 32 Enterprise Collaboration Solutions 299 346 Avaya Global Services 288 302 Unallocated Amounts (1) (8 ) (10 ) 579 638 OPERATING EXPENSES Selling, general and administrative 333 374 Research and development 75 88 Amortization of intangible assets 57 57 Restructuring charges, net 23 15 488 534 OPERATING INCOME 91 104 INTEREST EXPENSE AND OTHER INCOME, NET (114 ) (98 ) (LOSS) INCOME BEFORE INCOME TAXES $ (23 ) $ 6 (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 Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss as of December 31, 2015 and 2014 are summarized as follows: In millions Change in unamortized pension, postretirement and postemployment benefit-related items Foreign Currency Translation Other Accumulated Other Comprehensive Loss Balance as of October 1, 2015 $ (1,368 ) $ (15 ) $ (1 ) $ (1,384 ) Other comprehensive income before reclassifications — 9 — 9 Amounts reclassified to earnings 15 — — 15 Balance as of December 31, 2015 $ (1,353 ) $ (6 ) $ (1 ) $ (1,360 ) In millions Change in unamortized pension, postretirement and postemployment benefit-related items Foreign Currency Translation Other Accumulated Other Comprehensive Loss Balance as of October 1, 2014 $ (1,150 ) $ (49 ) $ (1 ) $ (1,200 ) Other comprehensive income before reclassifications — 10 — 10 Amounts reclassified to earnings 18 — — 18 Provision for income taxes (1 ) — — (1 ) Balance as of December 31, 2014 $ (1,133 ) $ (39 ) $ (1 ) $ (1,173 ) 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 locations, during the three months ended December 31, 2015 and 2014 were as follows: Three months ended December 31, In millions 2015 2014 Line item in Statements of Operations Change in unamortized pension, postretirement and postemployment benefit-related items $ 4 $ 5 Costs - Products 4 5 Costs - Services 6 7 Selling, general and administrative 1 1 Research and development Total amounts reclassified to operations $ 15 $ 18 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Dec. 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 initial 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 $71 million and represents activity through February 28, 2015. The Company expects that TLI/Continuant will make a supplemental application for activity beyond February 28, 2015 at some point in the future. 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. As an interim matter, on or before February 25, 2016, the Company expects to post a bond in the amount of $8 million in connection with the pending attorneys' fees application. 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 filed its initial appellate brief with the Third Circuit on June 12, 2015 and briefing by the parties is now complete. Oral argument took place before the Third Circuit on January 19, 2016, and the Company is now awaiting a decision. 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. SNMP Research International, Inc. and SNMP Research, Inc. (collectively, “SNMP-RI”) brought a complaint, on November 2, 2011, against Avaya and Nortel Networks, Inc. (“Nortel”) (and others) in the Nortel Chapter 11 bankruptcy proceeding. In the complaint, SNMP-RI alleges that Avaya is liable to SNMP-RI for copyright and trade secret infringement with respect to Nortel products acquired by Avaya that incorporate SNMP-RI products. No trial date has been set. In a separate case pending in the United States District Court for the District of Delaware, SNMP-RI alleged that (i) Avaya either underreported or failed to report royalties owed to SNMP-RI under a license agreement and (ii) Avaya’s use of SNMP-RI software in certain ways constitutes copyright and trade secret infringement. Trial of this matter is currently scheduled to begin May 9, 2016. In late 2014 SNMP-RI also brought two separate complaints against several of Avaya’s resellers or distributors, alleging essentially the same facts as in the matters described above; these two cases are now stayed following motions filed by Avaya. Avaya believes it has meritorious defenses but 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. 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. In light of the Louisiana Supreme Court’s holding in another hearing loss case (“Graphic Packaging”), in which the Court held that noise induced hearing loss qualifies as an occupational injury or disease subject to Workers’ Compensation claims, in October 2015, Avaya filed dispositive motions seeking dismissal of this matter. In January 2016, the Court granted the Company’s motion to dismiss except as to one unrepresented plaintiff whose claim, for procedural reasons, will be dismissed once service has been effected. 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, 2015 $ 9 Reductions for payments and costs to satisfy claims (3 ) Accruals for warranties issued during the period 2 Balance as of December 31, 2015 $ 8 Guarantees of Indebtedness and Other Off-Balance Sheet Arrangements Letters of Credit As of December 31, 2015 , the Company had $136 million of outstanding letters of credit which ensure the Company's performance or payment to third parties. Included in this amount is $114 million and $22 million of letters of credit issued under the Domestic ABL and Foreign ABL, respectively. 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 . Some of these bonds, including the $63 million supersedeas bond filed with the Court in the TLI/Continuant matter discussed above, are guaranteed by $71 million of the $114 million of letters of credit issued under the Domestic ABL. If the Company fails to perform under its obligations, the maximum potential payment under all of these surety bonds was $77 million as of December 31, 2015 . 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 $22 million in awards were outstanding as of December 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 December 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 5, “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 December 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. In addition, in connection with the distribution, the Company and Lucent entered into a Tax Sharing Agreement that 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. |
Supplementary Financial Informa
Supplementary Financial Information (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Supplementary Financial Information [Abstract] | |
Schedule of Additional Financial Information | Supplementary Financial Information Supplemental Operations Information Three months ended December 31, In millions 2015 2014 OTHER INCOME, NET Foreign currency gains, net $ 6 $ 6 Change in certain tax indemnifications — 9 Other, net (2 ) (1 ) Total other income, net $ 4 $ 14 Supplemental Cash Flow Information Three months ended December 31, In millions 2015 2014 NON-CASH INVESTING ACTIVITY Acquisition of equipment under capital lease $ 3 $ — |
Business Restructuring Reserv20
Business Restructuring Reserves And Programs (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Fiscal 2016 Restructuring Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs | In millions Employee Separation Costs Lease Obligations Total Fiscal 2016 restructuring program charges $ 23 $ — $ 23 Cash payments (3 ) — (3 ) Impact of foreign currency fluctuations 1 — 1 Balance as of December 31, 2015 $ 21 $ — $ 21 |
Fiscal 2015 Restructuring Program | |
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 three months ended December 31, 2015 : In millions Employee Separation Costs Lease Obligations Total Balance as of October 1, 2015 $ 31 $ 2 $ 33 Cash payments (10 ) — (10 ) Adjustments (1) (1 ) — (1 ) Balance as of December 31, 2015 $ 20 $ 2 $ 22 |
Fiscal 2008-2011 Restructuring Programs | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs | The following table aggregates the remaining components of the fiscal 2008 through 2014 restructuring programs during the three months ended December 31, 2015 : In millions Employee Separation Costs Lease Obligations Total Balance as of October 1, 2015 $ 64 $ 60 $ 124 Cash payments (8 ) (5 ) (13 ) Adjustments (1) — 1 1 Impact of foreign currency fluctuations (2 ) (2 ) (4 ) Balance as of December 31, 2015 $ 54 $ 54 $ 108 (1) Included in adjustments are changes in estimates, whereby all increases and decreases in costs related to the fiscal 2009 through 2014 restructuring programs were recorded to the restructuring charges line item in operating expenses in the period of the adjustments. Included in adjustments were 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 were recorded as adjustments to goodwill. |
Fiscal 2008-2014 Restructuring Programs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs | In millions Employee Separation Costs Lease Obligations Total Balance as of October 1, 2015 $ 64 $ 60 $ 124 Cash payments (8 ) (5 ) (13 ) Adjustments (1) — 1 1 Impact of foreign currency fluctuations (2 ) (2 ) (4 ) Balance as of December 31, 2015 $ 54 $ 54 $ 108 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Principal amounts of long term debt and long term debt net of discounts and issuance costs consisted of the following: December 31, 2015 September 30, 2015 In millions Principal Amount Net of Discounts and Issuance Costs Principal Amount Net of Discounts and Issuance Costs Variable rate revolving loans under the Senior Secured Credit Agreement due October 26, 2016 $ 18 $ 18 $ 18 $ 18 Variable rate revolving loans under the Domestic ABL due June 4, 2020 70 70 55 55 Variable rate revolving loans under the Foreign ABL due June 4, 2020 20 20 20 20 Variable rate term B-3 loans due October 26, 2017 616 612 616 611 Variable rate term B-4 loans due October 26, 2017 1 1 1 1 Variable rate term B-6 loans due March 31, 2018 537 533 537 532 Variable rate term B-7 loans due May 29, 2020 2,106 2,073 2,112 2,077 7% senior secured notes due April 1, 2019 1,009 1,000 1,009 999 9% senior secured notes due April 1, 2019 290 286 290 286 10.50% senior secured notes due March 1, 2021 1,384 1,368 1,384 1,368 Total debt $ 6,051 5,981 $ 6,042 5,967 Debt maturing within one year (25 ) (7 ) Non-current portion of long-term debt $ 5,956 $ 5,960 |
Schedule of Maturities of Long-term Debt | Annual maturities of the principal amounts of our long-term debt for the next five years ending September 30 and thereafter consist of: In millions Remainder of fiscal 2016 $ 19 2017 43 2018 1,179 2019 1,324 2020 2,102 2021 and thereafter 1,384 Total $ 6,051 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and September 30, 2015 were as follows: December 31, 2015 September 30, 2015 Fair Value Measurements Using Fair Value Measurements Using In millions Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Other Non-Current Assets: Investments $ 1 $ 1 $ — $ — $ 1 $ 1 $ — $ — Other Current Liabilities: Foreign currency forward contracts $ — $ — $ — $ — $ 1 $ — $ 1 $ — |
Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company’s debt at December 31, 2015 and September 30, 2015 were as follows: December 31, 2015 September 30, 2015 In millions Principal Amount Fair Value Principal Amount Fair Value Variable rate revolving loans under the Senior Secured Credit Agreement due October 26, 2016 $ 18 $ 16 $ 18 $ 17 Variable rate revolving loans under the Domestic ABL due June 4, 2020 70 62 55 42 Variable rate revolving loans under the Foreign ABL due June 4, 2020 20 17 20 15 Variable rate term B-3 loans due October 26, 2017 616 478 616 532 Variable rate term B-4 loans due October 26, 2017 1 1 1 1 Variable rate term B-6 loans due March 31, 2018 537 408 537 461 Variable rate term B-7 loans due May 29, 2020 2,106 1,488 2,112 1,666 7% senior secured notes due April 1, 2019 1,009 759 1,009 800 9% senior secured notes due April 1, 2019 290 221 290 242 10.50% senior secured notes due March 1, 2021 1,384 474 1,384 644 Total $ 6,051 $ 3,924 $ 6,042 $ 4,420 |
Benefit Obligations (Tables)
Benefit Obligations (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The components of the pension and postretirement net periodic benefit cost (credit) for the three months ended December 31, 2015 and 2014 are provided in the table below: Pension Benefits - U.S. Pension Benefits - Non-U.S. Postretirement Benefits - U.S. Three months ended December 31, Three months ended December 31, Three months ended December 31, In millions 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost (credit) Service cost $ 1 $ 1 $ 1 $ 2 $ — $ — Interest cost 28 34 3 4 3 5 Expected return on plan assets (46 ) (44 ) — (1 ) (2 ) (2 ) Amortization of unrecognized prior service cost — — — — (5 ) (3 ) Amortization of previously unrecognized net actuarial loss 22 24 2 2 1 1 Net periodic benefit cost (credit) $ 5 $ 15 $ 6 $ 7 $ (3 ) $ 1 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Dec. 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 December 31, In millions 2015 2014 REVENUE Global Communications Solutions $ 414 $ 481 Avaya Networking 50 68 Enterprise Collaboration Solutions 464 549 Avaya Global Services 494 530 $ 958 $ 1,079 GROSS PROFIT Global Communications Solutions $ 283 $ 314 Avaya Networking 16 32 Enterprise Collaboration Solutions 299 346 Avaya Global Services 288 302 Unallocated Amounts (1) (8 ) (10 ) 579 638 OPERATING EXPENSES Selling, general and administrative 333 374 Research and development 75 88 Amortization of intangible assets 57 57 Restructuring charges, net 23 15 488 534 OPERATING INCOME 91 104 INTEREST EXPENSE AND OTHER INCOME, NET (114 ) (98 ) (LOSS) INCOME BEFORE INCOME TAXES $ (23 ) $ 6 (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 Comprehensi25
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Schedule of Accumulated Other Comprehensive Income (Loss) | In millions Change in unamortized pension, postretirement and postemployment benefit-related items Foreign Currency Translation Other Accumulated Other Comprehensive Loss Balance as of October 1, 2015 $ (1,368 ) $ (15 ) $ (1 ) $ (1,384 ) Other comprehensive income before reclassifications — 9 — 9 Amounts reclassified to earnings 15 — — 15 Balance as of December 31, 2015 $ (1,353 ) $ (6 ) $ (1 ) $ (1,360 ) | In millions Change in unamortized pension, postretirement and postemployment benefit-related items Foreign Currency Translation Other Accumulated Other Comprehensive Loss Balance as of October 1, 2014 $ (1,150 ) $ (49 ) $ (1 ) $ (1,200 ) Other comprehensive income before reclassifications — 10 — 10 Amounts reclassified to earnings 18 — — 18 Provision for income taxes (1 ) — — (1 ) Balance as of December 31, 2014 $ (1,133 ) $ (39 ) $ (1 ) $ (1,173 ) |
Schedule of Comprehensive Income (Loss) | Three months ended December 31, In millions 2015 2014 Line item in Statements of Operations Change in unamortized pension, postretirement and postemployment benefit-related items $ 4 $ 5 Costs - Products 4 5 Costs - Services 6 7 Selling, general and administrative 1 1 Research and development Total amounts reclassified to operations $ 15 $ 18 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | In millions Balance as of October 1, 2015 $ 9 Reductions for payments and costs to satisfy claims (3 ) Accruals for warranties issued during the period 2 Balance as of December 31, 2015 $ 8 |
Background, Merger And Basis 27
Background, Merger And Basis Of Presentation (Details) $ in Millions | Jun. 05, 2012USD ($) | Dec. 18, 2009USD ($) | Dec. 31, 2015segments | Dec. 31, 2014segments |
General Disclosures [Line Items] | ||||
Number of Operating Segments | segments | 3 | |||
Nortel Networks | ||||
General Disclosures [Line Items] | ||||
Business Combination, Consideration Transferred | $ | $ 933 | |||
RADVISION Ltd | Parent Company | ||||
General Disclosures [Line Items] | ||||
Business Combination, Consideration Transferred | $ | $ 230 | |||
Product Portfolio | ||||
General Disclosures [Line Items] | ||||
Number of Operating Segments | segments | 2 |
Supplementary Financial Infor28
Supplementary Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OTHER INCOME, NET | ||
Foreign currency gains, net | $ 6 | $ 6 |
Change in certain tax indemnifications | 0 | 9 |
Other, net | (2) | (1) |
Total other income, net | 4 | 14 |
Noncash Investing and Financing Items [Abstract] | ||
Capital Lease Obligations Incurred | $ 3 | $ 0 |
Business Restructuring Reserv29
Business Restructuring Reserves And Programs Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ 23 | $ 15 | $ 62 |
Fiscal 2016 Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 23 | ||
Restructuring Reserve [Roll Forward] | |||
Cash payments | 3 | ||
Impact of foreign currency fluctuations | 1 | ||
Balance as of December 31, 2015 | 21 | ||
Fiscal 2008-2014 Restructuring Programs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 1, 2015 | 124 | ||
Cash payments | 13 | ||
Adjustments | 1 | ||
Impact of foreign currency fluctuations | (4) | ||
Balance as of December 31, 2015 | 108 | 124 | |
Fiscal 2015 Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 1, 2015 | 33 | ||
Cash payments | 10 | ||
Adjustments | (1) | ||
Balance as of December 31, 2015 | 22 | 33 | |
Employee Separation Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 52 | ||
Employee Separation Costs | Fiscal 2016 Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 23 | ||
Restructuring Reserve [Roll Forward] | |||
Cash payments | 3 | ||
Impact of foreign currency fluctuations | 1 | ||
Balance as of December 31, 2015 | 21 | ||
Employee Separation Costs | Fiscal 2008-2014 Restructuring Programs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 1, 2015 | 64 | ||
Cash payments | 8 | ||
Adjustments | 0 | ||
Impact of foreign currency fluctuations | (2) | ||
Balance as of December 31, 2015 | 54 | 64 | |
Employee Separation Costs | Fiscal 2015 Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 1, 2015 | 31 | ||
Cash payments | 10 | ||
Adjustments | (1) | ||
Balance as of December 31, 2015 | 20 | 31 | |
Lease Obligations | Fiscal 2016 Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 0 | ||
Restructuring Reserve [Roll Forward] | |||
Cash payments | 0 | ||
Impact of foreign currency fluctuations | 0 | ||
Balance as of December 31, 2015 | 0 | ||
Lease Obligations | Fiscal 2008-2014 Restructuring Programs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 1, 2015 | 60 | ||
Cash payments | 5 | ||
Adjustments | 1 | ||
Impact of foreign currency fluctuations | (2) | ||
Balance as of December 31, 2015 | 54 | 60 | |
Lease Obligations | Fiscal 2015 Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 1, 2015 | 2 | ||
Cash payments | 0 | ||
Adjustments | 0 | ||
Balance as of December 31, 2015 | $ 2 | $ 2 |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of long term debt) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Debt Instrument [Line Items] | ||
Debt maturing within one year | $ (25) | $ (7) |
Long-term debt | 5,956 | 5,960 |
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 70 | 55 |
Principal Amount | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 6,051 | 6,042 |
Principal Amount | Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 70 | 55 |
Principal Amount | Secured Debt | Senior Secured Multi-Currency Revolver | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 18 | 18 |
Principal Amount | Secured Debt | Senior secured term B-3 loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 616 | 616 |
Principal Amount | Secured Debt | Senior secured term B-4 loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 1 | 1 |
Principal Amount | Secured Debt | Senior Secured Term B-6 Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 537 | 537 |
Principal Amount | Secured Debt | 10.50% Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 1,384 | 1,384 |
Principal Amount | Secured Debt | Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 1,009 | 1,009 |
Principal Amount | Secured Debt | 9% Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 290 | 290 |
Net of Discounts and Issuance Costs | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 5,981 | 5,967 |
Debt maturing within one year | (25) | (7) |
Long-term debt | 5,956 | 5,960 |
Net of Discounts and Issuance Costs | Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 70 | 55 |
Net of Discounts and Issuance Costs | Secured Debt | Senior Secured Multi-Currency Revolver | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 18 | 18 |
Net of Discounts and Issuance Costs | Secured Debt | Senior secured term B-3 loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 612 | 611 |
Net of Discounts and Issuance Costs | Secured Debt | Senior secured term B-4 loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 1 | 1 |
Net of Discounts and Issuance Costs | Secured Debt | Senior Secured Term B-6 Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 533 | 532 |
Net of Discounts and Issuance Costs | Secured Debt | 10.50% Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 1,368 | 1,368 |
Net of Discounts and Issuance Costs | Secured Debt | Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | 1,000 | 999 |
Net of Discounts and Issuance Costs | Secured Debt | 9% Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, current and noncurrent portions | $ 286 | $ 286 |
Financing Arrangements (Maturit
Financing Arrangements (Maturity profile) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
Remainder of fiscal 2016 | $ 19 |
2,016 | 43 |
2,017 | 1,179 |
2,018 | 1,324 |
2,019 | 2,102 |
2021 and thereafter | 1,384 |
Long-term debt, current and noncurrent portions | $ 6,051 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) - USD ($) | May. 29, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Jun. 05, 2015 | Mar. 31, 2015 | Aug. 20, 2014 |
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 6,051,000,000 | ||||||
Debt, Weighted Average Interest Rate | 7.30% | 7.30% | |||||
Sale Leaseback Transaction, Financing Capacity | $ 24,000,000 | ||||||
Proceeds from sale-leaseback transactions | $ 0 | $ 12,000,000 | |||||
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | 200,000,000 | $ 150,000,000 | |||||
Letters of Credit Outstanding, Amount | 114,000,000 | $ 119,000,000 | |||||
Long-term Debt | 70,000,000 | 55,000,000 | |||||
Proceeds from Domestic ABL | 70,000,000 | 0 | |||||
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | Base Rate Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 335,000,000 | ||||||
Secured Debt | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 108,000,000 | 83,000,000 | |||||
Secured Debt | Senior Secured Term B-3 Loans | |||||||
Debt Instrument [Line Items] | |||||||
Letters of Credit Outstanding, Amount | 22,000,000 | 22,000,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 88,000,000 | 101,000,000 | |||||
Secured Debt | Senior Secured Term B-3 Loans | Base Rate Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | ||||||
Secured Debt | Senior Secured Multi-Currency Revolver | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 18,000,000 | $ 200,000,000 | |||||
Proceeds from Domestic ABL | 0 | $ 20,000,000 | |||||
Secured Debt | Senior secured term B-4 loans | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Long-term Debt | $ 2,125,000,000 | ||||||
Other current liabilities | |||||||
Debt Instrument [Line Items] | |||||||
Capital lease obligations | 61,000,000 | 61,000,000 | |||||
Avaya Pivate Cloud Services business | Other current liabilities | |||||||
Debt Instrument [Line Items] | |||||||
Capital lease obligations | 46,000,000 | 48,000,000 | |||||
Principal Amount | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 6,051,000,000 | 6,042,000,000 | |||||
Principal Amount | Variable rate senior secured multi-currency revolver | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Fair Value Disclosure | 18,000,000 | 18,000,000 | |||||
Principal Amount | Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 70,000,000 | 55,000,000 | |||||
Principal Amount | Secured Debt | Senior Secured Term B-3 Loans | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 20,000,000 | 20,000,000 | |||||
Principal Amount | Secured Debt | Senior Secured Multi-Currency Revolver | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 18,000,000 | 18,000,000 | |||||
Principal Amount | Secured Debt | Senior secured term B-4 loans | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 2,106,000,000 | 2,112,000,000 | |||||
Principal Amount | Secured Debt | Senior Secured Term B-6 Loans | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 537,000,000 | 537,000,000 | |||||
Principal Amount | Secured Debt | 9% Senior secured notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 290,000,000 | 290,000,000 | |||||
Principal Amount | Secured Debt | Senior secured notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 1,009,000,000 | 1,009,000,000 | |||||
Principal Amount | Secured Debt | 10.50% Senior secured notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 1,384,000,000 | 1,384,000,000 | |||||
Net of Discounts and Issuance Costs | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 5,981,000,000 | 5,967,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 70,000,000 | 55,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | Senior Secured Term B-3 Loans | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 20,000,000 | 20,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | Senior Secured Multi-Currency Revolver | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 18,000,000 | 18,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | Senior secured term B-4 loans | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 2,073,000,000 | 2,077,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | Senior Secured Term B-6 Loans | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 533,000,000 | 532,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | 9% Senior secured notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 286,000,000 | 286,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | Senior secured notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 1,000,000,000 | 999,000,000 | |||||
Net of Discounts and Issuance Costs | Secured Debt | 10.50% Senior secured notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 1,368,000,000 | $ 1,368,000,000 |
Derivatives And Other Financi33
Derivatives And Other Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income [Member] | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Gain (loss) on foreign currency contracts included in other income (expense) | $ 3 | $ (4) |
Fair Value Measures (Assets and
Fair Value Measures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Other assets, non-current | Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1 | $ 1 |
Foreign currency forward contracts | Derivative liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair Value Disclosure | 0 | 1 |
Quoted prices in active markets for identical instruments (Level 1) | 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) | 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) | 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) | 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 | 1 |
Fair Value, Inputs, Level 3 [Member] | Other assets, non-current | Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | 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 ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 6,051 | $ 6,042 |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 3,924 | 4,420 |
Secured Debt | Senior Secured Multi-Currency Revolver | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 18 | 18 |
Secured Debt | Senior Secured Multi-Currency Revolver | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 16 | 17 |
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 70 | 55 |
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 70 | 55 |
Secured Debt | Senior Secured Multi-Currency Asset-Based Revolver | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 62 | 42 |
Secured Debt | Senior Secured Multi-Currency Foreign Asset-Based Revolver | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 20 | 20 |
Secured Debt | Senior Secured Multi-Currency Foreign Asset-Based Revolver | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 17 | 15 |
Secured Debt | Senior secured term B-3 loans | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 616 | 616 |
Secured Debt | Senior secured term B-3 loans | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 478 | 532 |
Secured Debt | Senior secured term B-4 loans | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1 | 1 |
Secured Debt | Senior secured term B-4 loans | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1 | 1 |
Secured Debt | Senior Secured Term B-6 Loans | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 537 | 537 |
Secured Debt | Senior Secured Term B-6 Loans | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 408 | 461 |
Secured Debt | Senior secured term B-4 loans | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 2,106 | 2,112 |
Secured Debt | Senior secured term B-4 loans | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,488 | 1,666 |
Secured Debt | Senior secured notes | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,009 | 1,009 |
Secured Debt | Senior secured notes | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 759 | 800 |
Secured Debt | 9% Senior secured notes | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 290 | 290 |
Secured Debt | 9% Senior secured notes | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 221 | 242 |
Secured Debt | 10.50% Senior secured notes | Principal Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,384 | 1,384 |
Secured Debt | 10.50% Senior secured notes | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 474 | $ 644 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
(Provision for) benefit from income taxes | $ 4 | $ 3 |
Other Comprehensive Income (Loss), Tax | 1 | |
Income Tax Expense Benefit Before Prior Period Adjustment | $ (9) | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Error Corrections and Prior Period Adjustments, Interim Periods of Fiscal Year | 6 |
Benefit Obligations (Details)
Benefit Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | |
Pension Benefits - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by employer | $ 18 | ||
Estimated future employer contributions in current fiscal year | 70 | ||
Benefits paid | 2 | ||
Expected future benefit payments, remainder of fiscal year | 5 | ||
Components of Net Periodic Benefit Cost | |||
Service cost | 1 | $ 1 | |
Interest cost | 28 | 34 | |
Expected return on plan assets | (46) | (44) | |
Amortization of unrecognized prior service cost | 0 | 0 | |
Amortization of previously unrecognized net actuarial loss | 22 | 24 | |
Net periodic benefit cost | 5 | 15 | |
Pension Benefits - Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | 3 | ||
Expected future benefit payments, remainder of fiscal year | 23 | ||
Components of Net Periodic Benefit Cost | |||
Service cost | 1 | 2 | |
Interest cost | 3 | 4 | |
Expected return on plan assets | 0 | (1) | |
Amortization of unrecognized prior service cost | 0 | 0 | |
Amortization of previously unrecognized net actuarial loss | 2 | 2 | |
Net periodic benefit cost | 6 | 7 | |
Postretirement Benefits - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated future employer contributions in current fiscal year | 26 | ||
Benefits paid | 2 | ||
Expected future benefit payments, remainder of fiscal year | 2 | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 8 | ||
Components of Net Periodic Benefit Cost | |||
Service cost | 0 | 0 | |
Interest cost | 3 | 5 | |
Expected return on plan assets | (2) | (2) | |
Amortization of unrecognized prior service cost | (5) | (3) | |
Amortization of previously unrecognized net actuarial loss | 1 | 1 | |
Net periodic benefit cost | $ (3) | $ 1 | |
Minimum [Member] | Change in Assumptions for Pension Plans [Member] | Scenario, Forecast [Member] | Pension Benefits - U.S. | |||
Components of Net Periodic Benefit Cost | |||
Net periodic benefit cost | $ 30 | ||
Maximum [Member] | Change in Assumptions for Pension Plans [Member] | Scenario, Forecast [Member] | Pension Benefits - U.S. | |||
Components of Net Periodic Benefit Cost | |||
Net periodic benefit cost | $ 35 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($)segments | Dec. 31, 2014USD ($) | Sep. 30, 2015USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | segments | 3 | |||
REVENUE | $ 958 | $ 1,079 | ||
GROSS PROFIT | 579 | 638 | ||
Selling, general and administrative | 333 | 374 | ||
Research and development | 75 | 88 | ||
Amortization of intangible assets | 57 | 57 | ||
Restructuring charges, net | 23 | 15 | $ 62 | |
TOTAL OPERATING EXPENSES | 488 | 534 | ||
OPERATING INCOME | 91 | 104 | ||
INTEREST EXPENSE AND OTHER INCOME, NET | (114) | (98) | ||
(LOSS) INCOME BEFORE INCOME TAXES | (23) | 6 | ||
Global Communications Solutions | ||||
Segment Reporting Information [Line Items] | ||||
REVENUE | 414 | 481 | ||
GROSS PROFIT | 283 | 314 | ||
Avaya Networking | ||||
Segment Reporting Information [Line Items] | ||||
REVENUE | 50 | 68 | ||
GROSS PROFIT | 16 | 32 | ||
Enterprise Collaboration Solutions | ||||
Segment Reporting Information [Line Items] | ||||
REVENUE | 464 | 549 | ||
GROSS PROFIT | 299 | 346 | ||
Avaya Global Services | ||||
Segment Reporting Information [Line Items] | ||||
REVENUE | 494 | 530 | ||
GROSS PROFIT | 288 | 302 | ||
Unallocated Amounts | ||||
Segment Reporting Information [Line Items] | ||||
GROSS PROFIT | [1] | $ (8) | $ (10) | |
[1] | (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 Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | $ (1,368) | $ (1,150) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (15) | (49) |
Accumulated Other Comprehensive Income (Loss) Other | (1) | (1) |
Accumulated other comprehensive loss | (1,384) | (1,200) |
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 | 15 | 18 |
Other Comprehensive Income (Loss), Tax | (1) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 9 | 10 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | |
Other Comprehensive Income (Loss), Other, Before Reclassification and Tax | 0 | 0 |
Other Comprehensive Income (Loss), Other, Tax | 0 | |
Other Comprehensive Income (Loss), before Tax | 15 | 18 |
Other Comprehensive Income (Loss), Before Reclassification and Tax | 9 | 10 |
Other Comprehensive Income (Loss), Tax | (1) | |
Other Comprehensive Income (Loss), Other, Before Tax | 0 | 0 |
Accumulated other comprehensive loss | (1,360) | (1,173) |
Accumulated Other Comprehensive Income (Loss) Other | (1) | (1) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (6) | (39) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (1,353) | (1,133) |
Costs - Products | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Other comprehensive loss before reclassifications | 4 | 5 |
Costs - Services | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Other comprehensive loss before reclassifications | 4 | 5 |
Selling, general and administrative | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Other comprehensive loss before reclassifications | 6 | 7 |
Research and development | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Other comprehensive loss before reclassifications | $ 1 | $ 1 |
Commitments And Contingencies40
Commitments And Contingencies (Movement in product warranty liability) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Movement in product warranty liability: | |
Balance as of October 1, 2015 | $ 9 |
Reductions for payments and costs to satisfy claims | 3 |
Accruals for warranties issued during the period | 2 |
Balance as of December 31, 2015 | $ 8 |
Commitments And Contingencies41
Commitments And Contingencies (Commitments and Contingencies, other disclosures) (Details) | Nov. 10, 2014USD ($) | Feb. 29, 2016USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)plaintiffs | Sep. 30, 2015USD ($) |
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 | 22,000,000 | ||||
Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Maximum potential payout under surety bonds | 77,000,000 | ||||
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 | $ 136,000,000 | ||||
Antitrust Litigation | |||||
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 | plaintiffs | 101 | ||||
Hazardous Noise Exposure Litigation By Former Employees | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Sought, Value | $ 50,000 | ||||
Pending Litigation | Antitrust Litigation | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Actions Taken by Plaintiff | 3 | ||||
Loss Contingency, Damages Sought, Value | $ 71,000,000 | ||||
Settled Litigation | Antitrust Litigation | |||||
Loss Contingencies [Line Items] | |||||
Litigation Settlement, Amount | $ (63,000,000) | ||||
Secured Debt [Member] | Senior Secured Multi-Currency Asset-Based Revolver [Member] | |||||
Loss Contingencies [Line Items] | |||||
Long-term Line of Credit | $ 114,000,000 | $ 119,000,000 | |||
Subsequent Event [Member] | Pending Litigation | Antitrust Litigation | |||||
Loss Contingencies [Line Items] | |||||
Litigation Settlement, Amount | $ (8,000,000) |