Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AVYA | |
Entity Information, Former Legal or Registered Name | None | |
Entity Central Index Key | 0001418100 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2021 | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-38289 | |
Entity Registrant Name | AVAYA HOLDINGS CORP. | |
Entity Tax Identification Number | 26-1119726 | |
Entity Address, Address Line One | 2605 Meridian Parkway, Suite 200 | |
Entity Address, City or Town | Durham, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27713 | |
City Area Code | 908 | |
Local Phone Number | 953-6000 | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 84,212,324 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The Company early adopted this standard as of October 1, 2020. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this standard as of October 1, 2020 on a prospective basis. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements, however, the future impact of the standard will depend on the nature of future transactions within its scope. In August 2018, the FASB issued ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." This standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. This standard removes disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. The Company adopted this standard as of October 1, 2020 using the retrospective transition method. The adoption of this standard did not result in material changes to the Company’s benefit plan disclosures. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." This standard modifies the disclosure requirements on fair value measurements by removing or modifying certain existing disclosure requirements and adding additional disclosure requirements. The Company adopted this standard as of October 1, 2020. The adoption of this standard did not result in material changes to the Company's fair value disclosures. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This standard, along with other guidance subsequently issued by the FASB, requires entities to estimate expected credit losses for certain types of financial instruments, including trade receivables and contract assets, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard also expands the disclosure requirements to enable users of financial statements to understand the entity's assumptions, models and methods for estimating expected credit losses. The Company adopted the standard on October 1, 2020 using the modified retrospective transition method. On October 1, 2020, the beginning of the Company’s fiscal 2021, the Company recorded a net increase to the opening Accumulated deficit balance of $3 million, net of tax, due to the cumulative impact of adopting the standard. The impact was primarily related to the Company’s accounts receivable and contract asset balances on the adoption date. Updates to Significant Accounting Policies for Recently Adopted Accounting Pronouncements The Company's significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 filed with the SEC on November 25, 2020 have been updated to include the following new policies as a result of adopting ASU Nos. 2018-15 and 2016-13: Cloud Computing Arrangement Implementation Costs The Company periodically enters into cloud computing arrangements to access and use third-party software in support of its operations. The Company assesses its cloud computing arrangements with vendors to determine whether the contract meets the definition of a service contract or software license. For cloud computing arrangements that meet the definition of a service contract, the Company capitalizes implementation costs incurred during the application development stage as a prepaid expense and amortizes the costs on a straight-line basis over the term of the contract. Costs related to data conversion, training and other maintenance activities are expensed as incurred. Implementation costs for cloud computing arrangements that meet the definition of a software license are accounted for consistent with software developed or obtained for internal use as detailed in the Company’s existing Property, Plant and Equipment accounting policy. Allowance for Credit Losses The Company performs ongoing credit evaluations of its customers and generally does not require collateral from its customers. The Company estimates an allowance for credit losses using relevant available information from internal and external sources that consider historical experience, current conditions and reasonable and supportable forecasts. A separate allowance is measured for the Company’s accounts receivable, short-term contract asset and long-term contract asset balances. Each allowance is assessed on a collective basis by pooling assets with similar risk characteristics. The Company pools its accounts receivable and short-term contract assets based on aging status and its long-term contract assets by customer credit rating as published by third-party credit agencies. Historical loss experience provides the basis for the estimation of expected credit losses for accounts receivables and short-term contract assets. The Company uses probability of default rates to estimate expected credit losses for its long-term contract assets based on customer credit ratings. The Company also identifies customer specific credit risks and evaluates each based on the specific facts and circumstances as of the reporting date. The risk of loss is assessed over the contractual life of the assets and the expected loss amounts are adjusted for current and future conditions based on management’s qualitative considerations. Financial assets are written off in whole, or in part, when no reasonable expectation of recovery exists, although collection efforts may continue. Subsequent recoveries of amounts previously written off are recognized as an adjustment to the allowance for credit loss. Recent Standards Not Yet Effective |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUE | ||||
Revenue | $ 732,000,000 | $ 721,000,000 | $ 2,213,000,000 | $ 2,118,000,000 |
COSTS | ||||
TOTAL COST OF REVENUE | 325,000,000 | 324,000,000 | 978,000,000 | 956,000,000 |
Gross profit | 407,000,000 | 397,000,000 | 1,235,000,000 | 1,162,000,000 |
OPERATING EXPENSES | ||||
Selling, general and administrative | 266,000,000 | 232,000,000 | 785,000,000 | 763,000,000 |
Research and development | 55,000,000 | 52,000,000 | 167,000,000 | 155,000,000 |
Amortization of intangible assets | 40,000,000 | 40,000,000 | 119,000,000 | 122,000,000 |
Restructuring charges, net | 5,000,000 | 20,000,000 | 17,000,000 | 27,000,000 |
TOTAL OPERATING EXPENSES | 366,000,000 | 344,000,000 | 1,088,000,000 | 1,691,000,000 |
OPERATING INCOME (LOSS) | 41,000,000 | 53,000,000 | 147,000,000 | (529,000,000) |
Interest expense | (54,000,000) | (51,000,000) | (169,000,000) | (162,000,000) |
Other income (expense), net | 10,000,000 | 27,000,000 | 11,000,000 | 56,000,000 |
(LOSS) INCOME BEFORE INCOME TAXES | (3,000,000) | 29,000,000 | (11,000,000) | (635,000,000) |
Benefit from (provision for) income taxes | 46,000,000 | (20,000,000) | (8,000,000) | (82,000,000) |
NET INCOME (LOSS) | $ 43,000,000 | $ 9,000,000 | $ (19,000,000) | $ (717,000,000) |
EARNINGS (LOSS) PER SHARE | ||||
Net income (loss) per common share - basic (in usd per share) | $ 0.45 | $ 0.08 | $ (0.26) | $ (7.61) |
Net income (loss) per common share - diluted (in usd per share) | $ 0.43 | $ 0.08 | $ (0.26) | $ (7.61) |
Weighted average shares outstanding | ||||
Weighted average number of shares - basic (in shares) | 84,900 | 83,100 | 84,400 | 95,100 |
Weighted average number of shares - diluted (in shares) | 88,000 | 83,300 | 84,400 | 95,100 |
Asset Impairment Charges | $ 0 | $ 0 | $ 0 | $ 624,000,000 |
Products | ||||
REVENUE | ||||
Revenue | 254,000,000 | 261,000,000 | 746,000,000 | 804,000,000 |
COSTS | ||||
Total Cost of Goods and Services | 98,000,000 | 103,000,000 | 295,000,000 | 299,000,000 |
Amortization of technology intangible assets | 43,000,000 | 43,000,000 | 129,000,000 | 130,000,000 |
Services | ||||
REVENUE | ||||
Revenue | 478,000,000 | 460,000,000 | 1,467,000,000 | 1,314,000,000 |
COSTS | ||||
Total Cost of Goods and Services | $ 184,000,000 | $ 178,000,000 | $ 554,000,000 | $ 527,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income (loss) | $ 43,000,000 | $ 9,000,000 | $ (19,000,000) | $ (717,000,000) |
Cumulative translation adjustment | (9,000,000) | (11,000,000) | 6,000,000 | (17,000,000) |
Change in interest rate swaps | 9,000,000 | 4,000,000 | 50,000,000 | (35,000,000) |
Other comprehensive (loss) income | (2,000,000) | (7,000,000) | 100,000,000 | (52,000,000) |
Total comprehensive income (loss) | 41,000,000 | 2,000,000 | 81,000,000 | (769,000,000) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | $ (2,000,000) | $ 0 | 44,000,000 | $ 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | $ (1,000,000) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) $ in Millions | 9 Months Ended |
Jun. 30, 2021USD ($) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 562,000,000 | $ 727,000,000 |
Accounts receivable, net | 281,000,000 | 275,000,000 |
Inventory | 50,000,000 | 54,000,000 |
Contract assets | 447,000,000 | 296,000,000 |
Contract costs | 117,000,000 | 115,000,000 |
Other current assets | 113,000,000 | 112,000,000 |
TOTAL CURRENT ASSETS | 1,570,000,000 | 1,579,000,000 |
Property, plant and equipment, net | 288,000,000 | 268,000,000 |
Deferred income taxes, net | 45,000,000 | 31,000,000 |
Intangible assets, net | 2,311,000,000 | 2,556,000,000 |
Goodwill | 1,482,000,000 | 1,478,000,000 |
Operating Lease, Right-of-Use Asset | 145,000,000 | 160,000,000 |
Other assets | 193,000,000 | 159,000,000 |
TOTAL ASSETS | 6,034,000,000 | 6,231,000,000 |
Current liabilities: | ||
Accounts payable | 279,000,000 | 242,000,000 |
Operating Lease, Liability, Current | 51,000,000 | 49,000,000 |
Restructuring Reserve, Current | 20,000,000 | 21,000,000 |
Payroll and benefit obligations | 170,000,000 | 198,000,000 |
Contract liabilities | 387,000,000 | 446,000,000 |
Business restructuring reserve, current portion | 20,000,000 | 21,000,000 |
Other current liabilities | 192,000,000 | 181,000,000 |
TOTAL CURRENT LIABILITIES | 1,099,000,000 | 1,137,000,000 |
Non-current liabilities: | ||
Long-term debt | 2,806,000,000 | 2,886,000,000 |
Pension obligations | 714,000,000 | 749,000,000 |
Other post-retirement obligations | 145,000,000 | 215,000,000 |
Deferred income taxes, net | 43,000,000 | 38,000,000 |
Contract liabilities, non-current | 326,000,000 | 373,000,000 |
Operating Lease, Liability, Noncurrent | 114,000,000 | 129,000,000 |
Business restructuring reserve, non-current portion | 19,000,000 | 28,000,000 |
Other liabilities | 305,000,000 | 312,000,000 |
TOTAL NON-CURRENT LIABILITIES | 4,472,000,000 | 4,730,000,000 |
TOTAL LIABILITIES | 5,571,000,000 | 5,867,000,000 |
Preferred stock | 130,000,000 | 128,000,000 |
Operating Lease, Liability, Current | 51,000,000 | 49,000,000 |
STOCKHOLDER'S DEFICIENCY | ||
Common stock | 1,000,000 | 1,000,000 |
Additional paid-in capital | 1,468,000,000 | 1,449,000,000 |
Accumulated deficit | (991,000,000) | (969,000,000) |
Accumulated other comprehensive loss | (145,000,000) | (245,000,000) |
TOTAL STOCKHOLDER'S DEFICIENCY | 333,000,000 | 236,000,000 |
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIENCY | 6,034,000,000 | 6,231,000,000 |
Preferred stock | $ 130,000,000 | $ 128,000,000 |
Preferred shares issued | 125,000 | 125,000 |
Common Stock, Shares, Outstanding | 84,410,936 | 83,278,383 |
Shares issued at December 15, 2017 (in shares) | 84,410,936 | 83,278,383 |
Preferred Stock, Shares Outstanding | 125,000 | 125,000 |
Preferred Stock, Shares Authorized | 55,000,000 | 55,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 550,000,000 | 550,000,000 |
Series A Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Sep. 30, 2020 |
Preferred Stock, Shares Outstanding | 125,000 | 125,000 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 550,000,000 | 550,000,000 |
Common stock, shares issued | 84,410,936 | 83,278,383 |
Common stock, shares outstanding | 84,410,936 | 83,278,383 |
Preferred Stock, Shares Authorized | 55,000,000 | 55,000,000 |
Preferred Stock, Shares Issued | 125,000 | 125,000 |
Series A Preferred Stock | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Sep. 30, 2019 | 111,000,000 | ||||
Beginning Balance at Sep. 30, 2019 | $ 1,300,000,000 | $ 1,000,000 | $ 1,761,000,000 | $ (289,000,000) | $ (173,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 300,000 | ||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan | 0 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 100,000 | ||||
Stock Repurchased and Retired During Period, Shares | (10,700,000) | ||||
Amortization of share-based compensation | 6,000,000 | 6,000,000 | |||
Temporary Equity, Accretion of Dividends | 1,000,000 | 1,000,000 | |||
Preferred Stock, Accretion of Redemption Discount | (4,000,000) | (4,000,000) | |||
Net income (loss) | (54,000,000) | ||||
Other comprehensive income (loss) | 10,000,000 | ||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (2,000,000) | (2,000,000) | |||
Stock Repurchased and Retired During Period, Value | 142,000,000 | 142,000,000 | |||
Ending Balance at Dec. 31, 2019 | 1,113,000,000 | $ 1,000,000 | 1,618,000,000 | (343,000,000) | (163,000,000) |
Ending Balance (in shares) at Dec. 31, 2019 | 100,500,000 | ||||
Beginning Balance (in shares) at Sep. 30, 2019 | 111,000,000 | ||||
Beginning Balance at Sep. 30, 2019 | 1,300,000,000 | $ 1,000,000 | 1,761,000,000 | (289,000,000) | (173,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (717,000,000) | ||||
Other comprehensive income (loss) | (52,000,000) | ||||
Ending Balance at Jun. 30, 2020 | 211,000,000 | $ 1,000,000 | 1,441,000,000 | (1,006,000,000) | (225,000,000) |
Ending Balance (in shares) at Jun. 30, 2020 | 82,900,000 | ||||
Beginning Balance (in shares) at Dec. 31, 2019 | 100,500,000 | ||||
Beginning Balance at Dec. 31, 2019 | 1,113,000,000 | $ 1,000,000 | 1,618,000,000 | (343,000,000) | (163,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 600,000 | ||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan | 0 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 200,000 | ||||
Stock Repurchased and Retired During Period, Shares | (18,200,000) | ||||
Amortization of share-based compensation | 8,000,000 | 8,000,000 | |||
Temporary Equity, Accretion of Dividends | 1,000,000 | 1,000,000 | |||
Net income (loss) | (672,000,000) | ||||
Other comprehensive income (loss) | (55,000,000) | ||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (1,000,000) | (1,000,000) | |||
Stock Repurchased and Retired During Period, Value | 188,000,000 | 188,000,000 | |||
Ending Balance at Mar. 31, 2020 | 204,000,000 | $ 1,000,000 | 1,436,000,000 | (1,015,000,000) | (218,000,000) |
Ending Balance (in shares) at Mar. 31, 2020 | 82,700,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 300,000 | ||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan | 0 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 100,000 | ||||
Amortization of share-based compensation | 7,000,000 | 7,000,000 | |||
Temporary Equity, Accretion of Dividends | 1,000,000 | 1,000,000 | |||
Net income (loss) | 9,000,000 | ||||
Other comprehensive income (loss) | (7,000,000) | ||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (1,000,000) | (1,000,000) | |||
Ending Balance at Jun. 30, 2020 | 211,000,000 | $ 1,000,000 | 1,441,000,000 | (1,006,000,000) | (225,000,000) |
Ending Balance (in shares) at Jun. 30, 2020 | 82,900,000 | ||||
Beginning Balance (in shares) at Sep. 30, 2020 | 83,300,000 | ||||
Beginning Balance at Sep. 30, 2020 | 236,000,000 | $ 1,000,000 | 1,449,000,000 | (969,000,000) | (245,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 300,000 | ||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan | 0 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 100,000 | ||||
Amortization of share-based compensation | 14,000,000 | 14,000,000 | |||
Temporary Equity, Accretion of Dividends | 1,000,000 | 1,000,000 | |||
Net income (loss) | (4,000,000) | ||||
Other comprehensive income (loss) | 17,000,000 | ||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (2,000,000) | (2,000,000) | |||
Ending Balance at Dec. 31, 2020 | 260,000,000 | $ 1,000,000 | 1,463,000,000 | (976,000,000) | (228,000,000) |
Ending Balance (in shares) at Dec. 31, 2020 | 83,800,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 300,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 3,000,000 | 3,000,000 | |||
Beginning Balance (in shares) at Sep. 30, 2020 | 83,300,000 | ||||
Beginning Balance at Sep. 30, 2020 | $ 236,000,000 | $ 1,000,000 | 1,449,000,000 | (969,000,000) | (245,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Repurchased During Period, Shares | (793,662) | ||||
Temporary Equity, Accretion of Dividends | $ 2,000,000 | ||||
Net income (loss) | (19,000,000) | ||||
Other comprehensive income (loss) | 100,000,000 | ||||
Ending Balance at Jun. 30, 2021 | $ 333,000,000 | $ 1,000,000 | 1,468,000,000 | (991,000,000) | (145,000,000) |
Ending Balance (in shares) at Jun. 30, 2021 | 84,400,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 573,023 | ||||
Beginning Balance (in shares) at Dec. 31, 2020 | 83,800,000 | ||||
Beginning Balance at Dec. 31, 2020 | $ 260,000,000 | $ 1,000,000 | 1,463,000,000 | (976,000,000) | (228,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 1,200,000 | ||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan | 8,000,000 | 8,000,000 | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 300,000 | ||||
Stock Repurchased and Retired During Period, Shares | (200,000) | ||||
Amortization of share-based compensation | 13,000,000 | 13,000,000 | |||
Temporary Equity, Accretion of Dividends | 1,000,000 | 1,000,000 | |||
Net income (loss) | (58,000,000) | ||||
Other comprehensive income (loss) | 85,000,000 | ||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (7,000,000) | (7,000,000) | |||
Stock Repurchased and Retired During Period, Value | 7,000,000 | 7,000,000 | |||
Ending Balance at Mar. 31, 2021 | 296,000,000 | $ 1,000,000 | 1,472,000,000 | (1,034,000,000) | (143,000,000) |
Ending Balance (in shares) at Mar. 31, 2021 | 84,700,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 200,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 3,000,000 | 3,000,000 | |||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 300,000 | ||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan | $ 0 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 100,000 | ||||
Stock Repurchased and Retired During Period, Shares | (600,000) | ||||
Stock Repurchased During Period, Shares | (548,456) | ||||
Amortization of share-based compensation | $ 11,000,000 | 11,000,000 | |||
Dividends, Preferred Stock, Stock | (1,000,000) | 1,000,000 | |||
Net income (loss) | 43,000,000 | ||||
Other comprehensive income (loss) | (2,000,000) | ||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (2,000,000) | (2,000,000) | |||
Stock Repurchased and Retired During Period, Value | 15,000,000 | 15,000,000 | |||
Ending Balance at Jun. 30, 2021 | 333,000,000 | $ 1,000,000 | 1,468,000,000 | $ (991,000,000) | $ (145,000,000) |
Ending Balance (in shares) at Jun. 30, 2021 | 84,400,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 100,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 3,000,000 | $ 3,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | $ 314,000,000 | $ 319,000,000 |
Share-based compensation | 41,000,000 | 21,000,000 |
Amortization of Debt Issuance Costs and Discounts | 19,000,000 | 19,000,000 |
Gain (Loss) on Extinguishment of Debt | 1,000,000 | 0 |
Deferred income taxes, net | (9,000,000) | (11,000,000) |
Change in fair value of emergence date warrants | 27,000,000 | 0 |
Unrealized loss on foreign currency transactions | (6,000,000) | 19,000,000 |
Marketable Securities, Realized Gain (Loss) | 0 | |
Other non-cash charges (credits), net | (1,000,000) | (7,000,000) |
Increase (Decrease) in Receivables | (3,000,000) | 50,000,000 |
Changes in operating assets and liabilities: | ||
Inventory | 4,000,000 | 6,000,000 |
Operating lease right-of-use assets and liabilities | 2,000,000 | 12,000,000 |
Contract assets | (172,000,000) | (122,000,000) |
Contract costs | (8,000,000) | 1,000,000 |
Accounts payable | 35,000,000 | (37,000,000) |
Payroll and benefit obligations | (84,000,000) | 5,000,000 |
Business restructuring reserve | (11,000,000) | (15,000,000) |
Contract liabilities | (109,000,000) | (37,000,000) |
Other assets and liabilities | 16,000,000 | (4,000,000) |
Net cash used for operating activities | 35,000,000 | 77,000,000 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (78,000,000) | (72,000,000) |
Proceeds from Sale and Maturity of Marketable Securities | 0 | 412,000,000 |
Net cash used for investing activities | (78,000,000) | 340,000,000 |
Payments for Repurchase of Common Stock | (22,000,000) | (330,000,000) |
Proceeds from Issuance of Preferred Stock and Preference Stock | 0 | 121,000,000 |
FINANCING ACTIVITIES: | ||
Repayments of long-term debt | (100,000,000) | (250,000,000) |
Payment for Contingent Consideration Liability, Financing Activities | 0 | (5,000,000) |
Payments of Debt Issuance Costs | (2,000,000) | 0 |
NET CASH USED FOR FINANCING ACTIVITIES | (126,000,000) | (425,000,000) |
Effect of exchange rate changes on cash and cash equivalents | 4,000,000 | (2,000,000) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (165,000,000) | (10,000,000) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 566,000,000 | 746,000,000 |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | 10,000,000 |
Net income (loss) | (19,000,000) | (717,000,000) |
Asset Impairment Charges | 0 | 624,000,000 |
Finance Lease, Principal Payments | 10,000,000 | 8,000,000 |
Payments for Other Financing Arrangements | (1,000,000) | 0 |
Proceeds from Other financing arrangements | 3,000,000 | 0 |
Proceeds from Stock Plans | 10,000,000 | 1,000,000 |
Proceeds from Stock Options Exercised | 8,000,000 | 0 |
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | (1,000,000) | 0 |
Payment, Tax Withholding, Share-based Payment Arrangement | (11,000,000) | (4,000,000) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (14,000,000) | 0 |
Term Loan Credit Agreement 2024 [Member] | ||
FINANCING ACTIVITIES: | ||
Repayments of long-term debt | (743,000,000) | 0 |
Term Loan Credit Agreement, Tranche B-2, 2027 | ||
FINANCING ACTIVITIES: | ||
Proceeds from Issuance of Long-term Debt | 743,000,000 | 0 |
Post-retirement Benefits | ||
FINANCING ACTIVITIES: | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (14,000,000) | |
U.S. | Post-retirement Benefits | ||
FINANCING ACTIVITIES: | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (14,000,000) | 0 |
ABL Credit Agreement | ||
FINANCING ACTIVITIES: | ||
Proceeds from Lines of Credit | $ 0 | $ 50,000,000 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background Avaya Holdings Corp. (the "Parent" or "Avaya Holdings"), together with its consolidated subsidiaries (collectively, the "Company" or "Avaya"), is a global leader in digital communications products, solutions and services for businesses of all sizes delivering its technology predominantly through software and services. Avaya builds open, converged and innovative solutions to enhance and simplify communications and collaboration in the cloud, on-premise or a hybrid of both. The Company's global team of professionals delivers services from initial planning and design, to implementation and integration, to ongoing managed operations, optimization, training and support. The Company manages its business operations in two segments, Products & Solutions and Services. The Company sells directly to customers through its worldwide sales force and indirectly through its global network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators and business partners that provide sales and services support. Basis of Presentation Avaya Holdings has no material assets or standalone operations other than its ownership of direct wholly-owned subsidiary Avaya Inc. and its subsidiaries. The accompanying unaudited interim Condensed Consolidated Financial Statements reflect the operating results of Avaya Holdings and its consolidated 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. The unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and other financial information for the fiscal year ended September 30, 2020, included in the Company's Annual Report on Form 10-K filed with the SEC on November 25, 2020. In management's opinion, these unaudited interim Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal and recurring adjustments, necessary to fairly state the results of operations, financial position and cash flows for the periods indicated. The condensed consolidated results of operations for the interim periods reported are not necessarily indicative of the results for the entire fiscal year. Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the periods reported. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Actual results may differ from these estimates. During the second quarter of fiscal 2020, the World Health Organization characterized a novel strain of coronavirus ("COVID-19") as a pandemic. The spread of COVID-19 around the globe and the actions required to mitigate its impact have created substantial disruption to the global economy. The duration of the pandemic and the long-term impacts on the global economy are uncertain, especially in light of the emergence of variants. The pandemic may affect management’s estimates and assumptions, in particular those that require a projection of our financial results, our cash flows or broader economic conditions, such as the collectability of accounts receivable, sales returns and allowances, the use and recoverability of inventory, the realization of deferred tax assets, annual effective tax rate, the fair value of equity compensation, the recoverability of long-lived assets, useful lives and impairment of tangible and intangible assets including goodwill, business restructuring reserves and fair value measurements. During fiscal 2020, the Company recognized a significant goodwill impairment charge which is further described in Note 7, “Goodwill, net” in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 filed with the SEC on November 25, 2020. The COVID-19 pandemic did not have a material impact on the Company's operating results during the third quarter of fiscal 2021. |
Contract Balances
Contract Balances | 9 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Contracts with Customers Disaggregation of Revenue The following tables provide the Company's disaggregated revenue for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Revenue: Products & Solutions $ 254 $ 262 $ 746 $ 805 Services 478 460 1,468 1,317 Unallocated Amounts — (1) (1) (4) Total revenue $ 732 $ 721 $ 2,213 $ 2,118 Three months ended June 30, 2021 Three months ended June 30, 2020 (In millions) Products & Solutions Services Unallocated Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 131 $ 287 $ — $ 418 $ 138 $ 277 $ — $ 415 International: Europe, Middle East and Africa 76 105 — 181 77 101 — 178 Asia Pacific 27 45 — 72 32 44 (1) 75 Americas International - Canada and Latin America 20 41 — 61 15 38 — 53 Total International 123 191 — 314 124 183 (1) 306 Total revenue $ 254 $ 478 $ — $ 732 $ 262 $ 460 $ (1) $ 721 Nine months ended June 30, 2021 Nine months ended June 30, 2020 (In millions) Products & Solutions Services Unallocated Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 359 $ 886 $ — $ 1,245 $ 406 $ 789 $ (2) $ 1,193 International: Europe, Middle East and Africa 241 323 (1) 563 248 289 (1) 536 Asia Pacific 86 138 — 224 92 131 (1) 222 Americas International - Canada and Latin America 60 121 — 181 59 108 — 167 Total International 387 582 (1) 968 399 528 (2) 925 Total revenue $ 746 $ 1,468 $ (1) $ 2,213 $ 805 $ 1,317 $ (4) $ 2,118 Unallocated amounts represent the fair value adjustment to deferred revenue recognized upon emergence from bankruptcy in December 2017 and excluded from segment revenue. Transaction Price Allocated to the Remaining Performance Obligations The transaction price allocated to remaining performance obligations that were wholly or partially unsatisfied as of June 30, 2021 was $2.4 billion, of which 56% and 26% is expected to be recognized within 12 months and 13-24 months, respectively, with the remaining balance expected to be recognized thereafter. This excludes amounts for remaining performance obligations that are (1) for contracts recognized over time using the "right to invoice" practical expedient, (2) related to sales or usage based royalties promised in exchange for a license of intellectual property and (3) related to variable consideration allocated entirely to a wholly unsatisfied performance obligation. Contract Balances The following table provides information about accounts receivable, contract assets, contract costs and contract liabilities for the periods presented: (In millions) June 30, 2021 September 30, 2020 Increase (Decrease) Accounts receivable, net $ 281 $ 275 $ 6 Contract assets, net: Current $ 447 $ 296 $ 151 Non-current (Other assets) 91 71 20 $ 538 $ 367 $ 171 Cost of obtaining a contract: Current (Contract costs) $ 86 $ 92 $ (6) Non-current (Other assets) 47 40 7 $ 133 $ 132 $ 1 Cost to fulfill a contract: Current (Contract costs) $ 31 $ 23 $ 8 Contract liabilities: Current $ 387 $ 446 $ (59) Non-current 326 373 (47) $ 713 $ 819 $ (106) The increase in Contract assets was mainly driven by growth in the Company's subscription offerings. The decrease in contract liabilities was mainly driven by planned declines in hardware maintenance and software support services as customers continue to transition to the Company's subscription offerings. The decrease was also driven by revenue earned from the consideration advance received in connection with the strategic partnership with RingCentral, Inc. as further described in Note 5, "Strategic Partnership". During the three and nine months ended June 30, 2021 and 2020, the Company did not record any asset impairment charges related to contract assets. During the nine months ended June 30, 2021 and 2020, the Company recognized revenue of $503 million and $500 million that had been previously recorded as a Contract liability as of October 1, 2020 and October 1, 2019, respectively. During the three months ended June 30, 2021 and 2020, the Company recognized an increase (decrease) to revenue of $1 million and $(1) million, respectively, for performance obligations that were satisfied in prior periods. During the nine months ended June 30, 2021, adjustments to revenue for performance obligations that were satisfied in prior periods were not material. During the nine months ended June 30, 2020, the Company recognized a decrease to revenue of $1 million for performance obligations that were satisfied in prior periods. Contract Costs The following table provides information regarding the location and amount for amortization of costs to obtain and costs to fulfill customer contracts recognized in the Company's Condensed Consolidated Statements of Operations for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Costs to obtain customer contracts: Selling, general and administrative $ 47 $ 38 $ 138 $ 104 Revenue 3 1 7 1 Total Amortization $ 50 $ 39 $ 145 $ 105 Costs to fulfill customer contracts: Costs $ 7 $ 8 $ 21 $ 28 Revenue — 4 — 4 Total Amortization $ 7 $ 12 $ 21 $ 32 Allowance for Credit Losses The following table presents the change in the allowance for credit losses by portfolio segment for the period indicated: Accounts Receivable (1) Short-term Contract Assets (2) Long-term Contract Assets (3) Total Allowance for credit loss as of September 30, 2020 $ 7 $ — $ — $ 7 Adjustment to retained earnings upon adoption 1 1 1 3 Adjustment to credit loss provision (3) — — (3) Allowance for credit loss as of June 30, 2021 $ 5 $ 1 $ 1 $ 7 (1) Recorded within Accounts receivable, net on the Condensed Consolidated Balance Sheets. (2) Recorded within Contract assets, net on the Condensed Consolidated Balance Sheets. (3) Recorded within Other assets on the Condensed Consolidated Balance Sheets. |
Strategic Partnership (Notes)
Strategic Partnership (Notes) | 9 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Strategic Partnership | Strategic Partnership On October 3, 2019, the Company entered into certain agreements that establish the framework for the Company's strategic partnership with RingCentral, Inc. ("RingCentral") a leading provider of global enterprise cloud communications, video meetings, collaboration and contact center ("CC") solutions, to accelerate the Company's transition to the cloud. Through this partnership, the Company introduced Avaya Cloud Office by RingCentral ("ACO"), a new global unified communications as a service ("UCaaS") solution. The transaction closed on October 31, 2019 and ACO was launched on March 31, 2020. As part of the strategic partnership, the Company and RingCentral also entered into an agreement governing the terms of the commercial arrangement between the parties (the "Framework Agreement"). In accordance with the Framework Agreement, RingCentral paid Avaya $375 million, predominantly for future fees, as well as for certain licensing rights. The $375 million payment consisted of $361 million in shares of RingCentral common stock and $14 million in cash. During the nine months ended June 30, 2020, the Company sold all of its shares of RingCentral common stock. During the three and nine months ended June 30, 2020, the Company recognized gains on RingCentral shares of $29 million and $59 million, respectively, within Other income, net in the Condensed Consolidated Statements of Operations. |
Supplementary Financial Informa
Supplementary Financial Information | 9 Months Ended |
Jun. 30, 2021 | |
Supplementary Financial Information [Abstract] | |
Additional Financial Information Disclosure | Supplementary Financial Information The following table presents a summary of Other income, net for the periods indicated: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 OTHER INCOME, NET Interest income $ — $ 1 $ 1 $ 6 Foreign currency gains (losses), net 4 (5) 3 (16) Gain on investments in equity and debt securities, net — 29 — 49 Gain on post-retirement plan settlement — — 14 — Other pension and post-retirement benefit credits, net 7 5 21 16 Change in fair value of emergence date warrants — (3) (27) — Sublease income — 1 1 4 Other, net (1) (1) (2) (3) Total other income, net $ 10 $ 27 $ 11 $ 56 For the three and nine months ended June 30, 2020, the gain on investments in equity and debt securities, net includes gains on shares of RingCentral common stock of $29 million and $59 million, respectively, as disclosed in Note 5, "Strategic Partnership". The gain on investments in equity and debt securities, net for the nine months ended June 30, 2020 also includes a $10 million impairment of debt securities mainly driven by a decline in the macroeconomic environment due to the COVID-19 pandemic and a decline in the expected operating results and cash flows for the investment company. The gain on post-retirement plan settlement for the nine months ended June 30, 2021 is further described in Note 13, "Benefit Obligations." The following table presents supplemental cash flow information for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 OTHER PAYMENTS Interest payments $ 34 $ 47 $ 126 $ 151 Income tax payments 14 63 23 88 NON-CASH INVESTING ACTIVITIES Increase in Accounts payable and Other liabilities for capital expenditures $ 4 $ 1 $ 2 $ 5 Acquisition of equipment under finance leases 2 5 8 5 During the three months ended June 30, 2021 and 2020, the Company made payments for operating lease liabilities of $14 million and $17 million, respectively, and recorded non-cash additions for operating lease right-of-use assets of $4 million and $14 million, respectively. During the nine months ended June 30, 2021 and 2020, the Company made payments for operating lease liabilities of $47 million and $50 million, respectively, and recorded non-cash additions for operating lease right-of-use assets of $20 million and $29 million, respectively. The following table presents a reconciliation of cash, cash equivalents, and restricted cash that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows for the periods presented: (In millions) June 30, 2021 September 30, 2020 June 30, 2020 September 30, 2019 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH Cash and cash equivalents $ 562 $ 727 $ 742 $ 752 Restricted cash included in other assets 4 4 4 4 Total cash, cash equivalents, and restricted cash $ 566 $ 731 $ 746 $ 756 |
Business Restructuring Reserves
Business Restructuring Reserves and Programs | 9 Months Ended |
Jun. 30, 2021 | |
Restructuring Reserve [Abstract] | |
Business Restructuring Reserves and Programs | Business Restructuring Reserves and Programs The following table summarizes the restructuring charges by activity for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Employee separation costs $ 4 $ 5 $ 6 $ 6 Facility exit costs 1 15 11 21 Total restructuring charges $ 5 $ 20 $ 17 $ 27 The Company's employee separation costs generally consist of severance charges which include, but are not limited to, termination payments, pension fund payments, and health care and unemployment insurance costs to be paid to, or on behalf of, the affected employees. Facility exit costs primarily consist of lease obligation charges for exited facilities, including the impact of accelerated lease expense for right-of-use assets and accelerated depreciation expense for leasehold improvements with reductions in their estimated useful lives due to exited facilities. The restructuring charges include changes in estimates for increases and decreases in costs or changes in the timing of payments related to the restructuring programs of prior fiscal years. The Company does not allocate restructuring reserves to its operating segments. The following table summarizes the activity for employee separation costs recognized under the Company's restructuring programs for the nine months ended June 30, 2021: (In millions) Fiscal 2021 Restructuring Program (2) Fiscal 2020 Restructuring Program (2) Fiscal 2008 through 2019 Restructuring Programs (2) Total Accrual balance as of September 30, 2020 $ — $ 8 $ 41 $ 49 Cash payments (2) (2) (13) (17) Restructuring charges 6 — — 6 Adjustments (1) — 1 (1) — Impact of foreign currency fluctuations — — 1 1 Accrual balance as of June 30, 2021 $ 4 $ 7 $ 28 $ 39 (1) Includes changes in estimates for increases and decreases in costs related to the Company's restructuring programs, which are recorded in Restructuring charges, net in the Condensed Consolidated Statements of Operations in the period of the adjustment. (2) Payments related to the fiscal 2021, 2020 and 2008 through 2019 restructuring programs are expected to be completed in fiscal 2026. |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The following table reflects principal amounts of debt and debt net of discounts and issuance costs for the periods presented: June 30, 2021 September 30, 2020 (In millions) Principal amount Net of discounts and issuance costs Principal amount Net of discounts and issuance costs Senior 6.125% Notes due September 15, 2028 $ 1,000 $ 985 $ 1,000 $ 984 Tranche B Term Loans due December 15, 2024 — — 843 835 Tranche B-1 Term Loans due December 15, 2027 800 779 800 776 Tranche B-2 Term Loans due December 15, 2027 743 736 — — Convertible 2.25% Senior Notes due June 15, 2023 350 306 350 291 Total Long-term debt $ 2,893 $ 2,806 $ 2,993 $ 2,886 Term Loan and ABL Credit Agreements As of June 30, 2021 and September 30, 2020, the Company maintained (i) its Term Loan Credit Agreement among Avaya Inc., as borrower, Avaya Holdings, the lending institutions from time to time party thereto, and Goldman Sachs Bank USA, as administrative agent and collateral agent (the “Term Loan Credit Agreement”), and (ii) its ABL Credit Agreement, among Avaya Inc., as borrower, Avaya Holdings, the several other borrowers party thereto, the several lenders from time to time party thereto, and Citibank, N.A., as administrative agent and collateral agent, which provides a revolving credit facility consisting of a U.S. tranche and a foreign tranche allowing for borrowings of up to an aggregate principal amount of $200 million from time to time, subject to borrowing base availability (the "ABL Credit Agreement"). The ABL Credit Agreement matures on September 25, 2025. Prior to February 24, 2021, the Term Loan Credit Agreement matured in two tranches, with a principal amount of $843 million maturing on December 15, 2024 (the “Tranche B Term Loans”) and a principal amount of $800 million maturing on December 15, 2027 (the “Tranche B-1 Term Loans”). On February 24, 2021, the Company amended the Term Loan Credit Agreement (“Amendment No. 3”), pursuant to which the Company prepaid, replaced and refinanced the Tranche B Term Loans outstanding with $100 million in cash and $743 million in principal amount of new first lien term loans due December 2027 (the “Tranche B-2 Term Loans”). The Tranche B-2 Term Loans bear interest at a rate with applicable margin of 3.00% per annum with respect to base rate borrowings and 4.00% per annum with respect to LIBOR borrowings. Amendment No. 3 was primarily accounted for as a loan modification at the syndicated lender level. Based on the application of the loan modification guidance within ASC 470, the Company recorded $3 million of new debt issuance costs within Interest expense in the Consolidated Statements of Operations. Lenders who exited their positions in the Tranche B Term Loans as a result of Amendment No. 3 were accounted for as a loan extinguishment. Accordingly, the Company wrote-off a portion of the original underwriting discount of $1 million within Interest expense. For the three months ended June 30, 2021 and 2020, the Company recognized interest expense of $18 million and $32 million, respectively, related to the Term Loan Credit Agreement, including the amortization of the debt discount and issuance costs. For the nine months ended June 30, 2021 and 2020, the Company recognized interest expense of $60 million and $118 million, respectively, related to the Term Loan Credit Agreement, including the expenses associated with Amendment No. 3 described above and the amortization of the debt discount and issuance costs. As of June 30, 2021, the Company had no borrowings outstanding under the ABL Credit Agreement. Under the terms of the ABL Credit Agreement, the Company can issue letters of credit up to $150 million. At June 30, 2021, the Company had issued and outstanding letters of credit and guarantees of $39 million under the ABL Credit Agreement. The aggregate additional principal amount that may be borrowed under the ABL Credit Agreement, based on the borrowing base less $39 million of outstanding letters of credit and guarantees was $100 million at June 30, 2021. For both the three months ended June 30, 2021 and 2020, recognized interest expense related to the ABL Credit Agreement was not material. For both the nine months ended June 30, 2021 and 2020, the Company recognized interest expense of $1 million related to the ABL Credit Agreement. Senior Notes The Company’s Senior 6.125% First Lien Notes have an aggregate principal amount outstanding of $1,000 million and mature on September 15, 2028 (the “Senior Notes”). The Senior Notes were issued on September 25, 2020, pursuant to an indenture among the Company, the Company's subsidiaries that are guarantors of the Senior Notes and party thereto and Wilmington Trust, National Association, as trustee and notes collateral agent. For the three and nine months ended June 30, 2021, the Company recognized interest expense of $16 million and $48 million, respectively, related to the Senior Notes, including the amortization of debt issuance costs. Convertible Notes The Company's 2.25% Convertible Notes have an aggregate principal amount outstanding of $350 million (including notes issued in connection with the underwriters' exercise in full of an over-allotment option of $50 million) and mature on June 15, 2023 (the "Convertible Notes"). The Convertible Notes were issued under an indenture, by and between the Company and the Bank of New York Mellon Trust Company N.A., as Trustee. For each of the three months ended June 30, 2021 and 2020, the Company recognized interest expense of $7 million related to the Convertible Notes, which includes $5 million and $4 million of amortization of the debt discount and issuance costs, respectively. For the nine months ended June 30, 2021 and 2020, the Company recognized interest expense of $21 million and $20 million related to the Convertible Notes, respectively, which includes $15 million and $13 million of amortization of the debt discount and issuance costs, respectively. The net carrying amount of the Convertible Notes for the periods indicated was as follows: (In millions) June 30, 2021 September 30, 2020 Principal $ 350 $ 350 Less: Unamortized debt discount (41) (55) Unamortized issuance costs (3) (4) Net carrying amount $ 306 $ 291 The weighted average contractual interest rate of the Company's outstanding debt was 6.5% as of both June 30, 2021 and September 30, 2020, respectively. The effective interest rate for the Term Loan Credit Agreement as of June 30, 2021 and September 30, 2020 was not materially different than its contractual interest rate including adjustments related to interest rate swap agreements designated as highly effective cash flow hedges. The effective interest rate for the Senior Notes as of June 30, 2021 and September 30, 2020 was not materially different than its contractual interest rate. The effective interest rate for the Convertible Notes was 9.2% as of June 30, 2021 and September 30, 2020 reflecting the separation of the conversion feature in equity. The effective interest rates include interest on the debt and amortization of discounts and issuance costs. As of June 30, 2021, the Company was not in default under any of its debt agreements. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company accounts for derivative financial instruments in accordance with FASB ASC Topic 815, "Derivatives and Hedging," ("ASC 815") and does not enter into derivatives for trading or speculative purposes. Interest Rate Contracts The Company, from time to time, enters into interest rate swap contracts as a hedge against changes in interest rates on its outstanding variable rate loans. On May 16, 2018, the Company entered into interest rate swap agreements with six counterparties, which fix a portion of the variable interest due under its Term Loan Credit Agreement (the "Original Swap Agreements"). Under the terms of the Original Swap Agreements, which mature on December 15, 2022, the Company pays a fixed rate of 2.935% and receives a variable rate of interest based on one-month LIBOR. Through September 23, 2020, the total $1,800 million notional amount of the Original Swap Agreements were designated as cash flow hedges and deemed highly effective as defined under ASC 815. On September 23, 2020, the Company entered into an interest rate swap agreement for a notional amount of $257 million (the “Offsetting Swap Agreement”). Under the terms of the Offsetting Swap Agreement, which matures on December 15, 2022, the Company pays a variable rate of interest based on one-month LIBOR and receives a fixed rate of 0.1745%. The Company entered into the Offsetting Swap Agreement to maintain a net notional amount less than the amount of the Company’s variable rate loans outstanding. The Offsetting Swap Agreement was not designated for hedge accounting treatment. On September 23, 2020, Original Swap Agreements with a notional amount of $257 million were also de-designated from hedge accounting treatment. As of June 30, 2021, Original Swap Agreements with a notional amount of $1,543 million continue to be designated as cash flow hedges and deemed highly effective as defined under ASC 815. On July 1, 2020, the Company entered into interest rate swap agreements with four counterparties, which fix a portion of the variable interest due on its Term Loan Credit Agreement (the "Forward Swap Agreements") from December 15, 2022 (the maturity date of the Original Swap Agreements) through December 15, 2024. Under the terms of the Forward Swap Agreements, the Company will pay a fixed rate of 0.7047% and receive a variable rate of interest based on one-month LIBOR. The total notional amount of the Forward Swap Agreements is $1,400 million. Since their execution, the Forward Swap Agreements have been designated as cash flow hedges and deemed highly effective as defined by ASC 815. The Company records changes in the fair value of interest rate swap agreements designated as cash flow hedges initially within Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. As interest expense is recognized on the Term Loan Credit Agreement, the corresponding deferred gain or loss on the cash flow hedge is reclassified from Accumulated other comprehensive loss to Interest expense in the Condensed Consolidated Statements of Operations. The Company records changes in the fair value of interest rate swap agreements not designated for hedge accounting within Interest expense. On September 23, 2020, the Company froze a $15 million deferred loss within Accumulated other comprehensive loss for the de-designated Original Swap Agreements, which is reclassified to Interest expense over the term of the Original Swap Agreements. Based on the amount in Accumulated other comprehensive loss at June 30, 2021, approximately $50 million would be reclassified to Interest expense in the next twelve months. It is management's intention that the net notional amount of interest rate swap agreements be less than or equal to the variable rate loans outstanding during the life of the derivatives. Foreign Currency Forward Contracts The Company, from time to time, utilizes foreign currency forward contracts primarily to hedge fluctuations associated with certain monetary assets and liabilities including receivables, payables and certain intercompany balances. These foreign currency forward contracts are not designated for hedge accounting treatment. As a result, changes in the fair value of these contracts are recorded as a component of Other income, net to offset the change in the value of the hedged assets and liabilities. As of June 30, 2021, the Company maintained open foreign currency forward contracts with a total notional value of $173 million, hedging the British Pound Sterling, Mexican Peso, Czech Koruna and Indian Rupee. As of September 30, 2020, the Company maintained open foreign currency forward contracts with a total notional value of $375 million, primarily hedging the British Pound Sterling, Euro, Chinese Renminbi and Indian Rupee. Emergence Date Warrants In accordance with the bankruptcy plan of reorganization adopted in connection with the Company's emergence from bankruptcy on December 15, 2017 (the "Plan of Reorganization"), the Company issued warrants to purchase 5,645,200 shares of the Company's common stock to the holders of the second lien obligations extinguished pursuant to the Plan of Reorganization (the "Emergence Date Warrants"). Each Emergence Date Warrant has an exercise price of $25.55 per share and expires on December 15, 2022. The Emergence Date Warrants contain certain derivative features that require them to be classified as a liability and for changes in the fair value of the liability to be recognized in earnings each reporting period. On November 14, 2018, the Company's Board of Directors approved a warrant repurchase program, authorizing the Company to repurchase up to $15 million worth of the Emergence Date Warrants. None of the Emergence Date Warrants have been exercised or repurchased as of June 30, 2021. The fair value of the Emergence Date Warrants was determined using a probability weighted Black-Scholes option pricing model. This model requires certain input assumptions including risk-free interest rates, volatility, expected life and dividend rates. Selection of these inputs involves significant judgment. The fair value of the Emergence Date Warrants as of June 30, 2021 and September 30, 2020 was determined using the input assumptions summarized below: June 30, September 30, 2020 Expected volatility 74.62 % 68.53 % Risk-free interest rates 0.14 % 0.14 % Contractual remaining life (in years) 1.46 2.21 Price per share of common stock $26.90 $15.20 In determining the fair value of the Emergence Date Warrants, the dividend yield was assumed to be zero as the Company does not anticipate paying dividends throughout the term of the warrants. Financial Statement Information Related to Derivative Instruments The following table summarizes the fair value of the Company's derivatives on a gross basis, including accrued interest, segregated between those that are designated as hedging instruments and those that are not designated as hedging instruments: June 30, 2021 September 30, 2020 (In millions) Balance Sheet Caption Asset Liability Asset Liability Derivatives Designated as Hedging Instruments: Interest rate contracts Other assets $ 7 $ — $ — $ — Interest rate contracts Other current liabilities — 43 — 43 Interest rate contracts Other liabilities — 20 — 58 7 63 — 101 Derivatives Not Designated as Hedging Instruments: Interest rate contracts Other current liabilities — 7 — 7 Interest rate contracts Other liabilities — 4 — 9 Foreign exchange contracts Other current assets — — 1 — Foreign exchange contracts Other current liabilities — 1 — 2 Emergence Date Warrants Other liabilities — 35 — 8 — 47 1 26 Total derivative fair value $ 7 $ 110 $ 1 $ 127 The following tables provide information regarding the location and amount of pre-tax gains (losses) for interest rate swaps designated as cash flow hedges: Three months ended 2021 2020 (In millions) Interest Expense Other Comprehensive (Loss) Income Interest Expense Other Comprehensive (Loss) Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (54) $ (2) $ (51) $ (7) Impact of cash flow hedging relationships: Loss recognized in AOCI on interest rate swaps $ — $ (4) $ — $ (7) Interest expense reclassified from AOCI (13) 13 (11) 11 Nine months ended 2021 2020 (In millions) Interest Expense Other Comprehensive (Loss) Income Interest Expense Other Comprehensive (Loss) Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (169) $ 100 $ (162) $ (52) Impact of cash flow hedging relationships: Gain (loss) recognized in AOCI on interest rate swaps $ — $ 12 $ — $ (57) Interest expense reclassified from AOCI (38) 38 (22) 22 The following table provides information regarding the pre-tax gains (losses) for derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Operations: Three months ended Nine months ended (In millions) Location of Derivative Pre-tax (Loss) Gain 2021 2020 2021 2020 Emergence Date Warrants Other income, net $ — $ (3) $ (27) $ — Foreign exchange contracts Other income, net 1 — 7 (3) The Company records its derivatives on a gross basis in the Condensed Consolidated Balance Sheets. The Company has master netting agreements with several of its financial institution counterparties. The following table provides information on the Company's derivative positions as if those subject to master netting arrangements were presented on a net basis, allowing for the right to offset by counterparty per the master netting agreements: June 30, 2021 September 30, 2020 (In millions) Asset Liability Asset Liability Gross amounts recognized in the Condensed Consolidated Balance Sheets $ 7 $ 110 $ 1 $ 127 Gross amount subject to offset in master netting arrangements not offset in the Condensed Consolidated Balance Sheets (7) (7) (1) (1) Net amounts $ — $ 103 $ — $ 126 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Jun. 30, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Goodwill, net and Intangible Assets, net Goodwill, net Goodwill is not amortized but is subject to periodic testing for impairment in accordance with GAAP at the reporting unit level. The Company's reporting units are subject to impairment testing annually, on July 1 st , or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Nine Months Ended June 30, 2021 The Company determined that no events occurred or circumstances changed during the nine months ended June 30, 2021 that would indicate that it is more likely than not that its goodwill was impaired. To the extent that business conditions deteriorate or if changes in key assumptions and estimates differ significantly from management's expectations, it may be necessary to record impairment charges in the future. Nine Months Ended June 30, 2020 During the second quarter of fiscal 2020, the Company concluded that a triggering event occurred for both of its reporting units due to (i) the impact of the COVID-19 pandemic on the macroeconomic environment which led to revisions to the Company's long-term forecast during the second quarter of fiscal 2020 and (ii) the sustained decrease in the Company's stock price at the beginning stages of the pandemic which was caused by the resulting volatility in the financial markets. As a result, the Company performed an interim quantitative goodwill impairment test as of March 31, 2020 to compare the fair values of its reporting units to their respective carrying amounts, including the goodwill allocated to each reporting unit. The results of the Company’s interim goodwill impairment test as of March 31, 2020 indicated that the estimated fair value of the Company’s Services reporting unit exceeded its carrying amount. The carrying amount of the Company's Products & Solutions reporting unit exceeded its estimated fair value primarily due to a reduction in the Company’s long-term forecast to reflect increased risk from higher market uncertainty and the accelerated reduction of product sales related to the Company’s historical on-premises perpetual licenses with a continued shift and acceleration of customers upgrading and acquiring new technology through the utilization of the Company’s subscription offering, which is included in the Services reporting unit. As a result, the Company recorded a goodwill impairment charge of $624 million to write down the full carrying amount of the Products & Solutions goodwill in the Condensed Consolidated Statement of Operations for the nine months ended June 30, 2020. Intangible Assets, net The Company's intangible assets consist of the following for the periods indicated: (In millions) Technology Customer Trademarks and Trade Names Total Balance as of June 30, 2021 Finite-lived intangible assets: Cost $ 964 $ 2,156 $ 42 $ 3,162 Accumulated amortization (614) (550) (20) (1,184) Finite-lived intangible assets, net 350 1,606 22 1,978 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 350 $ 1,606 $ 355 $ 2,311 Balance as of September 30, 2020 Finite-lived intangible assets: Cost $ 961 $ 2,153 $ 42 $ 3,156 Accumulated amortization (482) (433) (18) (933) Finite-lived intangible assets, net 479 1,720 24 2,223 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 479 $ 1,720 $ 357 $ 2,556 Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Intangible assets determined to have indefinite useful lives are not amortized but are tested for impairment annually, on July 1 st , or more frequently if events occur or circumstances change that indicate an asset may be impaired. Nine Months Ended June 30, 2021 The Company determined that no events occurred or circumstances changed during the nine months ended June 30, 2021 that would indicate that its finite-lived intangible assets may not be recoverable or that it is more likely than not that its indefinite-lived intangible asset was impaired. To the extent that business conditions deteriorate or if changes in key assumptions and estimates differ significantly from management's expectations, it may be necessary to record impairment charges in the future. Nine Months Ended June 30, 2020 As a result of the goodwill triggering events identified during the second quarter of fiscal 2020, the Company performed a recoverability test on all of its finite-lived asset groups as of March 31, 2020 before proceeding to the goodwill impairment review and concluded that no impairment charge was necessary. The Company also performed an interim quantitative impairment test for its indefinite lived intangible asset, the Avaya Trade Name, as of March 31, 2020 and determined that its estimated fair value exceeded its carrying value and no impairment existed. The Company determined that no other events occurred or circumstances changed during the nine months ended June 30, 2020 that indicated the Company’s finite-lived intangible assets may not be recoverable or that it was more likely than not that the Avaya Trade Name was impaired. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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. Considerable judgment was required in developing certain of the estimates of fair value including the consideration of the COVID-19 pandemic that has caused significant volatility in U.S. and international markets, and accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and September 30, 2020 were as follows: June 30, 2021 September 30, 2020 Fair Value Measurements Using Fair Value Measurements Using (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Interest rate contracts $ 7 $ — $ 7 $ — $ — $ — $ — $ — Foreign exchange contracts — — — — 1 — 1 — Total assets $ 7 $ — $ 7 $ — $ 1 $ — $ 1 $ — Liabilities: Interest rate contracts $ 74 $ — $ 74 $ — $ 117 $ — $ 117 $ — Foreign exchange contracts 1 — 1 — 2 — 2 — Emergence Date Warrants 35 — — 35 8 — — 8 Total liabilities $ 110 $ — $ 75 $ 35 $ 127 $ — $ 119 $ 8 Interest rate and foreign exchange contracts classified as Level 2 assets and liabilities are not actively traded and are valued using pricing models that use observable inputs. Emergence Date Warrants classified as Level 3 liabilities are valued using a probability weighted Black-Scholes option pricing model which is further described in Note 10, "Derivative Instruments and Hedging Activities." During the three and nine months ended June 30, 2021 and 2020, there were no transfers into or out of Level 3. The activity related to the Company's Level 3 liability, the Emergence Date Warrants, relates to a change in fair value which was recorded in Other income, net. Fair Value of Financial Instruments The estimated fair values of the Company's Senior Notes, Term Loans, and Convertible Notes as of June 30, 2021 and September 30, 2020 were as follows: June 30, 2021 September 30, 2020 (In millions) Principal amount Fair value Principal amount Fair value Senior 6.125% Notes due September 15, 2028 $ 1,000 $ 1,072 $ 1,000 $ 1,022 Tranche B Term Loans due December 15, 2024 — — 843 838 Tranche B-1 Term Loans due December 15, 2027 800 804 800 786 Tranche B-2 Term Loans due December 15, 2027 743 746 — — Convertible 2.25% Senior Notes due June 15, 2023 350 413 350 331 Total $ 2,893 $ 3,035 $ 2,993 $ 2,977 The estimated fair value of the Term Loans and Senior Notes was determined using Level 2 inputs based on a market approach utilizing market-clearing data on the valuation date in addition to bid/ask prices. The estimated fair value of the Convertible Notes was determined based on the quoted price of the Convertible Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2. 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 their carrying values because of the short-term nature of these instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company's effective income tax rate for the three and nine months ended June 30, 2021 differed from the U.S. federal tax rate by 1,512% and 94%, or $45 million and $10 million, respectively, principally related to nondeductible expenses, including expenses related to the change in fair value of the Emergence Date Warrants, and deferred taxes (including losses) for which no benefit was recorded because it is more likely than not that the tax benefits would not be realized. The Company's effective income tax rate for the three and nine months ended June 30, 2020 differed from the U.S. federal tax rate by 48% and 34%, or $14 million and $215 million, respectively, principally related to the goodwill impairment charge recorded in the second quarter of fiscal 2020 and deferred taxes (including losses) for which no benefit was recorded because it is more likely than not that the tax benefits would not be realized. |
Benefit Obligations
Benefit Obligations | 9 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [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 post-retirement benefit plans covering a portion of its U.S. employees and 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 components of the pension and post-retirement net periodic benefit (credit) cost for the periods indicated are provided in the table below: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Pension Benefits - U.S. Components of net periodic benefit credit Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 5 7 15 22 Expected return on plan assets (14) (14) (40) (42) Amortization of actuarial loss — — 1 — Net periodic benefit credit $ (8) $ (6) $ (21) $ (17) Pension Benefits - Non-U.S. Components of net periodic benefit cost Service cost $ 1 $ 2 $ 5 $ 6 Interest cost 2 1 4 3 Net periodic benefit cost $ 3 $ 3 $ 9 $ 9 Post-retirement Benefits - U.S. Components of net periodic benefit cost (credit) Service cost $ — $ 1 $ 1 $ 1 Interest cost 1 2 5 8 Expected return on plan assets — (2) (4) (7) Amortization of prior service credit (1) — (3) (1) Amortization of actuarial loss — — 1 — Settlement gain — — (14) — Net periodic benefit cost (credit) $ — $ 1 $ (14) $ 1 The service components of net periodic benefit (credit) cost were recorded similar to compensation expense, while all other components were recorded in Other income, net. 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, or to directly pay benefits where appropriate. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law, providing limited relief for pension funding and retirement plan distributions. Under the CARES Act, employers were permitted to delay contributions for single employer defined benefit pension plans until January 4, 2021. The Company resumed making contributions to its U.S. pension plans during the second quarter of fiscal 2021. Contributions to U.S. pension plans were $11 million for the nine months ended June 30, 2021, which represented the amounts required to satisfy the minimum statutory funding requirements in the U.S. On March 11, 2021, the American Rescue Plan Act (the "ARP Act") was signed into law, providing limited interest-rate relief provisions and an extended shortfall amortization period for pension funding and retirement plan distributions. As a result, the Company does not expect to make any contributions to the U.S. pension plans during the remainder of fiscal 2021. Contributions to the non-U.S. pension plans were $19 million for the nine months ended June 30, 2021. For the remainder of fiscal 2021, the Company estimates that it will make contributions totaling $5 million for its non-U.S. plans. Effective December 1, 2020, the post-retirement medical plan coverage provided through the Company's group plan for retirees who retired after April 30, 2019 and their eligible dependents and future represented retirees and their eligible dependents was replaced with coverage through the private and public insurance marketplace. As a result, the U.S. represented post-retirement plan was remeasured as of November 30, 2020, which resulted in the recognition of a $12 million reduction to the accumulated benefit obligation with an offset to the Accumulated other comprehensive loss within the Condensed Consolidated Balance Sheet. The decrease was mainly driven by the change in medical coverage, partially offset by changes in actuarial assumptions. In March 2021, the Company entered into an irrevocable buy-out agreement with an insurance company to transfer $209 million of its post-retirement life insurance projected benefit obligations related to certain salaried and represented retirees and their beneficiaries who were retired as of March 26, 2021. The transaction was funded with post-retirement life insurance plan assets with a value of $190 million. As a result of this transaction, a settlement gain of $14 million was recognized within Other income, net in the Condensed Consolidated Statements of Operations. Most post-retirement medical benefits are not pre-funded. Consequently, the Company makes payments directly to the claims administrator as retiree medical benefit claims are disbursed. These payments are funded by the Company up to the maximum contribution amounts specified in the plan documents and contract with the Communications Workers of America and the International Brotherhood of Electrical Workers, and contributions from the participants, if required. During the nine months ended June 30, 2021, the Company made payments for retiree medical and dental benefits of $9 million and received a $2 million reimbursement from the represented employees' post-retirement health trust related to payments in prior periods. The Company estimates it will make payments for retiree medical and dental benefits totaling $3 million for the remainder of fiscal 2021. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | Share-based Compensation The Company maintains share-based compensation plans under which non-employee directors, employees of the Company or any of its affiliates, and certain consultants and advisors may be granted stock options, restricted stock, restricted stock units ("RSUs"), performance awards ("PRSUs") and other forms of awards granted or denominated in shares of the Company's common stock, as well as certain cash-based awards. Pre-tax share-based compensation expense for the three months ended June 30, 2021 and 2020 was $14 million and $7 million, respectively, and $41 million and $21 million for the nine months ended June 30, 2021 and 2020, respectively. Restricted Stock Units During the nine months ended June 30, 2021, the Company granted 1,797,062 RSUs with a weighted average grant date fair value of $21.68 per RSU and there were 1,225,889 RSUs that vested with a weighted average grant date fair value of $14.84 per RSU. Performance Restricted Stock Units During the nine months ended June 30, 2021, the Company granted 620,924 PRSUs with a weighted average grant date fair value of $22.27 per PRSU. These PRSUs will vest based upon the attainment of specified performance metrics for each of the next three separate fiscal years (collectively the "Performance Period"), as well as the achievement of total shareholder return over the Performance Period for the Company as compared to the total shareholder return for a specified index of companies over the same period. During the Performance Period, the Company will adjust compensation expense for the PRSUs based on its best estimate of attainment of the specified annual performance metrics. The cumulative effect on current and prior periods of a change in the estimated number of PRSUs that are expected to be earned during the Performance Period will be recognized as an adjustment to earnings in the period of the revision. The grant date fair value of the Performance PRSUs was determined using a Monte Carlo simulation model that incorporated multiple valuation assumptions, including the probability of achieving the total shareholder return market condition and the following assumptions presented on a weighted-average basis: Nine months ended June 30, 2021 Expected volatility (1) 63.56 % Risk-free interest rate (2) 0.20 % Dividend yield (3) — % (1) Expected volatility based on the Company's historical data. (2) Risk-free interest rate based on U.S. Treasury yields with a term equal to the remaining Performance Period as of the grant date. (3) Dividend yield was assumed to be zero as the Company does not anticipate paying dividends. Stock Options During the nine months ended June 30, 2021, there were 408,990 stock options exercised with a weighted average exercise price of $19.53. The intrinsic value of a stock option is the difference between the Company's common stock price and the option exercise price. The total pre-tax intrinsic value of stock options exercised during the nine months ended June 30, 2021 was $5 million. Employee Stock Purchase Plan During the nine months ended June 30, 2021, the Company withheld $10 million of eligible employee compensation for purchases of common stock and issued 573,023 shares of common stock under its employee stock purchase plan (the "ESPP"). The grant date fair value for shares issued under the ESPP is measured on the date that each offering period commences. The average grant date fair value for the offering periods that commenced during the nine months ended June 30, 2021 was $6.68 per share. The grant date fair value was determined using a Black-Scholes option pricing model with the following average grant date assumptions: Nine months ended June 30, 2021 Expected volatility (1) 55.27 % Risk-free interest rate (2) 0.05 % Dividend yield (3) — % (1) Expected volatility based on the Company's historical data. (2) Risk-free interest rate based on U.S. Treasury yields with a term equal to the length of the offering period. (3) Dividend yield was assumed to be zero as the Company does not anticipate paying dividends. |
Capital Stock
Capital Stock | 9 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Preferred Stock On October 31, 2019, the Company issued 125,000 shares of its 3% Series A Convertible Preferred Stock, par value $0.01 per share ("Series A Preferred Stock"), to RingCentral for an aggregate purchase price of $125 million. The Series A Preferred Stock is convertible into shares of the Company's common stock at an initial conversion price of $16.00 per share, which represents an approximately 9% interest in the Company's common stock on an as-converted basis as of June 30, 2021, assuming no holders of options, warrants, convertible notes or similar instruments exercise their exercise or conversion rights. As of June 30, 2021, the carrying value of the Series A Preferred Stock was $130 million, which includes $5 million of accreted dividends paid in kind. During the nine months ended June 30, 2021, the carrying value of the Series A Preferred Stock increased $2 million due to accreted dividends paid in kind. Pursuant to an Investor Rights Agreement, until such time when RingCentral and its affiliates hold or beneficially own less than 4,759,339 shares of the Company's common stock (on an as-converted basis), RingCentral has the right to nominate one person for election to the Company's Board of Directors. The director designated by RingCentral has the option (i) to serve on the Company's Audit and Nominating and Corporate Governance Committees or (ii) to attend (but not vote at) all of the Company's Board of Directors' committee meetings. On November 6, 2020, Robert Theis was elected to join the Company's Board of Directors as RingCentral's designee. Common Stock The Company maintains a share repurchase program authorizing the Company to repurchase the Company's common stock for an aggregate expenditure of up to $500 million. The repurchases may be made from time to time in the open market, through block trades or in privately negotiated transactions. The Company adopted a purchase plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, to implement the share repurchase program. The share repurchase program does not obligate the Company to purchase any common stock and may be terminated, increased or decreased by the Board of Directors in its discretion at any time. All shares that are repurchased under the program are retired by the Company. During the three and nine months ended June 30, 2021, the Company repurchased 548,456 and 793,662 shares of its common stock, respectively, at a weighted average price per share of $27.80 and $28.38, respectively, including transaction costs. As of June 30, 2021, the remaining authorized amount for share repurchases under this program was $147 million. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Earnings (Loss) Per Common Share Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding. Diluted earnings (loss) per share reflects the potential dilution that would occur if equity awards granted under the Company's various share-based compensation plans were vested or exercised; if the Company's Series A Preferred Stock were converted into shares of the Company's common stock; if the Company's Convertible Notes or the warrants the Company sold to purchase up to 12.6 million shares of its common stock in connection with the issuance of Convertible Notes ("Call Spread Warrants") were exercised; and/or if the Emergence Date Warrants were exercised, resulting in the issuance of common shares that would participate in the earnings of the Company. The following table sets forth the calculation of net income (loss) attributable to common stockholders and the computation of basic and diluted earnings (loss) per share for the periods indicated: Three months ended Nine months ended (In millions, except per share amounts) 2021 2020 2021 2020 Earnings (loss) per share: Numerator Net Income (loss) $ 43 $ 9 $ (19) $ (717) Dividends and accretion to preferred stockholders (1) (1) (3) (7) Undistributed Income (loss) 42 8 (22) (724) Percentage allocated to common stockholders (1) 91.3 % 91.2 % 100.0 % 100.0 % Numerator for basic and diluted earnings (loss) per common share $ 38 $ 7 $ (22) $ (724) Denominator Denominator for basic earnings (loss) per weighted average common shares 84.9 83.1 84.4 95.1 Effect of dilutive securities Restricted stock units 1.6 0.2 — — Performance restricted stock units 0.6 — — — Emergence Date Warrants 0.5 — — — Stock options 0.2 — — — Convertible notes 0.2 — — — Denominator for diluted earnings (loss) per weighted average common shares 88.0 83.3 84.4 95.1 Earnings (loss) per common share Basic $ 0.45 $ 0.08 $ (0.26) $ (7.61) Diluted $ 0.43 $ 0.08 $ (0.26) $ (7.61) (1) Basic weighted average common stock outstanding 84.9 83.1 84.4 95.1 Basic weighted average common stock and common stock equivalents (preferred shares) 93.0 91.1 84.4 95.1 Percentage allocated to common stockholders 91.3 % 91.2 % 100.0 % 100.0 % The Company's Series A Preferred Stock are participating securities, which requires the application of the two-class method to calculate basic and diluted earnings per share. Under the two-class method, undistributed earnings are allocated to common stock and participating securities according to their respective participating rights in undistributed earnings, as if all the earnings for the period had been distributed. Basic earnings (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Net income (loss) attributable to common stockholders is reduced for preferred stock dividends earned and accretion recognized during the period. No allocation of undistributed earnings to participating securities was performed for periods with net losses as such securities do not have a contractual obligation to share in the losses of the Company. For the three months ended June 30, 2021, the Company excluded 0.1 million shares issuable under the ESPP and 0.1 million shares of Series A Preferred Stock from the diluted earnings per share calculation as their effect would have been anti-dilutive. The Company also excluded 0.9 million PRSUs from the diluted earnings per share calculation as their performance metrics have not been attained. For the nine months ended June 30, 2021, the Company excluded 3.1 million RSUs, 0.5 million stock options, 0.1 million shares issuable under the ESPP, 5.6 million Emergence Date Warrants, 12.6 million shares underlying the Convertible Notes and 0.1 million shares of Series A Preferred Stock from the diluted loss per share calculation as their effect would have been anti-dilutive. The Company also excluded 1.6 million PRSUs from the diluted loss per share calculation as their performance metrics have not been attained or their effect would have been anti-dilutive. For the three months ended June 30, 2020, the Company excluded 2.1 million RSUs, 1.0 million stock options, 0.2 million shares issuable under the ESPP, 5.6 million Emergence Date Warrants, 12.6 million shares underlying the Convertible Notes and 0.1 million shares of Series A Preferred Stock from the diluted earnings per share calculation as their effect would have been anti-dilutive. The Company also excluded 1.0 million PRSUs from the diluted earnings per share calculation as their performance metrics had not yet been attained. For the nine months ended June 30, 2020, the Company excluded 2.8 million RSUs, 1.0 million stock options, 0.2 million shares issuable under the ESPP, 5.6 million Emergence Date Warrants, 12.6 million shares underlying the Convertible Notes and 0.1 million shares of Series A Preferred Stock from the diluted loss per share calculation as their effect would have been anti-dilutive. The Company also excluded 1.0 million PRSUs from the diluted loss per share calculation as their performance metrics had not yet been attained. The Company's Call Spread Warrants were excluded from the diluted earnings (loss) per share calculation for all periods presented as their effect would have been anti-dilutive. |
Operating Segments
Operating Segments | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments The Products & Solutions segment primarily develops, markets, and sells unified communications and contact center solutions, offered on-premise, in the cloud, or as a hybrid solution. These integrate multiple forms of communications, including telephony, email, instant messaging and video. The Services segment develops, markets and sells comprehensive end-to-end global service offerings that enable customers to evaluate, plan, design, implement, monitor, manage and optimize complex enterprise communications networks. Revenue from customers who upgrade and acquire new technology through the Company's subscription offerings is reported within the Services segment. 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 fair value adjustments recognized upon emergence from bankruptcy, charges relating to restructuring actions, impairment charges, and merger-related costs as these costs are not core to the measurement of segment performance, but rather are controlled at the corporate level. Summarized financial information relating to the Company's operating segments is shown in the following table for the periods indicated: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 REVENUE Products & Solutions $ 254 $ 262 $ 746 $ 805 Services 478 460 1,468 1,317 Unallocated Amounts (1) — (1) (1) (4) $ 732 $ 721 $ 2,213 $ 2,118 GROSS PROFIT Products & Solutions $ 156 $ 159 $ 451 $ 507 Services 294 282 914 791 Unallocated Amounts (2) (43) (44) (130) (136) 407 397 1,235 1,162 OPERATING EXPENSES Selling, general and administrative 266 232 785 763 Research and development 55 52 167 155 Amortization of intangible assets 40 40 119 122 Impairment of goodwill — — — 624 Restructuring charges, net 5 20 17 27 366 344 1,088 1,691 OPERATING INCOME (LOSS) 41 53 147 (529) INTEREST EXPENSE AND OTHER INCOME, NET (44) (24) (158) (106) (LOSS) INCOME BEFORE INCOME TAXES $ (3) $ 29 $ (11) $ (635) (1) Unallocated amounts in Revenue represent the fair value adjustment to deferred revenue recognized upon emergence from bankruptcy and excluded from segment revenue. (2) Unallocated amounts in Gross Profit include the fair value adjustments recognized upon emergence from bankruptcy and the effect of the amortization of technology intangibles which are excluded from segment gross profit. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss for the periods indicated were as follows: (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of March 31, 2021 $ (62) $ (31) $ (50) $ (143) Other comprehensive loss before reclassifications — (9) (4) (13) Amounts reclassified to earnings (2) — 13 11 Balance as of June 30, 2021 $ (64) $ (40) $ (41) $ (145) (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of September 30, 2020 $ (108) $ (46) $ (91) $ (245) Other comprehensive income before reclassifications 62 6 12 80 Amounts reclassified to earnings (17) — 38 21 Provision for income taxes (1) — — (1) Balance as of June 30, 2021 $ (64) $ (40) $ (41) $ (145) (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of March 31, 2020 $ (106) $ (13) $ (99) $ (218) Other comprehensive loss before reclassifications — (11) (7) (18) Amounts reclassified to earnings — — 11 11 Balance as of June 30, 2020 $ (106) $ (24) $ (95) $ (225) (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of September 30, 2019 $ (106) $ (7) $ (60) $ (173) Other comprehensive loss before reclassifications — (44) (57) (101) Amounts reclassified to earnings — 27 22 49 Balance as of June 30, 2020 $ (106) $ (24) $ (95) $ (225) Reclassifications from Accumulated other comprehensive loss related to changes in unamortized pension, post-retirement and postemployment benefit-related items are recorded in Other income, net. Reclassifications from Accumulated other comprehensive loss related to the unrealized loss on interest rate swap agreements are recorded in Interest expense. Reclassifications from Accumulated other comprehensive loss related to foreign currency translation reflect the impact of certain liquidated entities and are recorded in Other income, net. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company's Board of Directors is comprised of eight directors, including the Company's Chief Executive Officer and seven non-employee directors. Specific Arrangements Involving the Company's Current Directors and Executive Officers William D. Watkins is a Director and Chair of the Board of Directors of the Company and serves on the board of directors of Flex Ltd. ("Flex"), an electronics design manufacturer. For the nine months ended June 30, 2021 and 2020, the Company purchased goods and services from subsidiaries of Flex of $11 million and $20 million, respectively, and sales of goods and services to subsidiaries of Flex were not material for either period. As of June 30, 2021 and September 30, 2020, the Company had outstanding accounts payable due to Flex of $4 million and $3 million, respectively. As of June 30, 2021, outstanding accounts receivable due from Flex were not material. As of September 30, 2020, the Company had outstanding accounts receivable due from Flex of $1 million. Stephan Scholl is a Director of the Company and serves on the board of directors and as Chief Executive Officer of Alight Solutions LLC ("Alight"), a provider of integrated benefits, payroll and cloud solutions. For each of the nine months ended June 30, 2021 and 2020, the Company purchased goods and services from subsidiaries of Alight of $3 million. As of June 30, 2021, outstanding accounts payable due to Alight was not material. As of September 30, 2020, the Company had outstanding accounts payable due to Alight of $1 million. Scott D. Vogel is a Director of the Company and began serving on the board of directors of iQor, a provider of business process outsourcing solutions, during the first quarter of fiscal 2021. For the nine months ended June 30, 2021, the Company sold goods and services to iQor of $1 million. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2021 | |
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 relating to intellectual property, commercial, employment, environmental indemnity and regulatory matters. The Company records accruals for legal contingencies to the extent that it has concluded that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the opinion of the Company's management, while the outcome of these matters is uncertain, the likely results of these matters are not expected, either individually or in the aggregate, to have a material adverse effect on the Company's financial position, annual results of operations or cash flows. However, an unfavorable resolution could have a material adverse effect on the Company's financial position, results of operations or cash flows in the periods in which the matters are ultimately resolved, or in the periods in which more information is obtained that changes management's opinion of the ultimate disposition. 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 Condensed Consolidated Balance Sheets, for actual experience. As of both June 30, 2021 and September 30, 2020, the amount reserved for product warranties was $2 million. Guarantees of Indebtedness and Other Off-Balance Sheet Arrangements Letters of Credit and Guarantees The Company provides guarantees, letters of credit and surety bonds to various parties as required for certain transactions initiated during the ordinary course of business to guarantee the Company's performance in accordance with contractual or legal obligations. As of June 30, 2021, the maximum potential payment obligation with regards to letters of credit, guarantees and surety bonds was $61 million. The outstanding letters of credit are collateralized by restricted cash of $4 million, which is included in Other assets on the Condensed Consolidated Balance Sheet as of June 30, 2021. 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, 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 quality control standards. Transactions with Nokia Pursuant to the Contribution and Distribution Agreement effective October 1, 2000 (the "Contribution and Distribution Agreement"), Nokia Corporation ("Nokia", formerly known as Lucent Technologies, Inc. ("Lucent")) contributed to the Company substantially all of the assets, liabilities and operations associated with its enterprise networking businesses (the "Contributed 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 Nokia for all liabilities including certain pre-distribution tax obligations of Nokia relating to the Contributed Businesses and all contingent liabilities primarily relating to the Contributed 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 Nokia 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 effective October 1, 2000 (the "Tax Sharing Agreement") that governs Nokia'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 Nokia. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Jun. 30, 2021 | |
Leases, Codification Topic 842 [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The following table details the components of net lease expense for the periods indicated: Three months ended Nine months ended In millions 2021 2020 2021 2020 Operating lease cost (1) $ 15 $ 17 $ 45 $ 51 Short-term lease cost (1) 1 1 4 4 Variable lease cost (1)(2) 3 5 10 14 Finance lease amortization of right-of-use assets (1) 1 1 4 3 Sublease income (3) — (1) (1) (4) Total lease cost $ 20 $ 23 $ 62 $ 68 (1) Allocated between Cost of products and services, and Operating expenses. (2) Includes real estate taxes and other charges for non-lease services payable to lessors and recognized in the period incurred. (3) Included in Other income, net. The Company's right-of-use assets and lease liabilities for financing leases are included in the Condensed Consolidated Balance Sheets as follows: In millions June 30, 2021 September 30, 2020 ASSETS Property, plant and equipment, net $ 16 $ 12 LIABILITIES Other current liabilities 5 8 Other liabilities 12 9 The following table summarizes the weighted average remaining lease term and weighted average interest rate for the Company's operating and financing leases for the periods indicated: June 30, 2021 September 30, 2020 Weighted average remaining lease term Operating Leases 4.2 years 4.5 years Financing Leases 3.7 years 2.7 years Weighted average interest rate Operating Leases 5.7 % 6.1 % Financing Leases 4.7 % 5.4 % The following table presents the maturities of lease payments for the Company's operating and financing leases as of June 30, 2021 (by fiscal year): In millions Operating Leases Financing Leases 2021 (remaining three months) $ 17 $ 1 2022 55 5 2023 41 5 2024 29 4 2025 17 2 2026 11 1 2027 and thereafter 15 — Total lease payments 185 18 Less: imputed interest (20) (1) Total lease liability $ 165 $ 17 |
Contract Balances (Tables)
Contract Balances (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide the Company's disaggregated revenue for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Revenue: Products & Solutions $ 254 $ 262 $ 746 $ 805 Services 478 460 1,468 1,317 Unallocated Amounts — (1) (1) (4) Total revenue $ 732 $ 721 $ 2,213 $ 2,118 Three months ended June 30, 2021 Three months ended June 30, 2020 (In millions) Products & Solutions Services Unallocated Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 131 $ 287 $ — $ 418 $ 138 $ 277 $ — $ 415 International: Europe, Middle East and Africa 76 105 — 181 77 101 — 178 Asia Pacific 27 45 — 72 32 44 (1) 75 Americas International - Canada and Latin America 20 41 — 61 15 38 — 53 Total International 123 191 — 314 124 183 (1) 306 Total revenue $ 254 $ 478 $ — $ 732 $ 262 $ 460 $ (1) $ 721 Nine months ended June 30, 2021 Nine months ended June 30, 2020 (In millions) Products & Solutions Services Unallocated Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 359 $ 886 $ — $ 1,245 $ 406 $ 789 $ (2) $ 1,193 International: Europe, Middle East and Africa 241 323 (1) 563 248 289 (1) 536 Asia Pacific 86 138 — 224 92 131 (1) 222 Americas International - Canada and Latin America 60 121 — 181 59 108 — 167 Total International 387 582 (1) 968 399 528 (2) 925 Total revenue $ 746 $ 1,468 $ (1) $ 2,213 $ 805 $ 1,317 $ (4) $ 2,118 |
Contract with Customer, Asset and Liability | The following table provides information about accounts receivable, contract assets, contract costs and contract liabilities for the periods presented: (In millions) June 30, 2021 September 30, 2020 Increase (Decrease) Accounts receivable, net $ 281 $ 275 $ 6 Contract assets, net: Current $ 447 $ 296 $ 151 Non-current (Other assets) 91 71 20 $ 538 $ 367 $ 171 Cost of obtaining a contract: Current (Contract costs) $ 86 $ 92 $ (6) Non-current (Other assets) 47 40 7 $ 133 $ 132 $ 1 Cost to fulfill a contract: Current (Contract costs) $ 31 $ 23 $ 8 Contract liabilities: Current $ 387 $ 446 $ (59) Non-current 326 373 (47) $ 713 $ 819 $ (106) |
Allowance for Credit Losses | The following table presents the change in the allowance for credit losses by portfolio segment for the period indicated: Accounts Receivable (1) Short-term Contract Assets (2) Long-term Contract Assets (3) Total Allowance for credit loss as of September 30, 2020 $ 7 $ — $ — $ 7 Adjustment to retained earnings upon adoption 1 1 1 3 Adjustment to credit loss provision (3) — — (3) Allowance for credit loss as of June 30, 2021 $ 5 $ 1 $ 1 $ 7 (1) Recorded within Accounts receivable, net on the Condensed Consolidated Balance Sheets. (2) Recorded within Contract assets, net on the Condensed Consolidated Balance Sheets. (3) Recorded within Other assets on the Condensed Consolidated Balance Sheets. |
Capitalized Contract Cost | The following table provides information regarding the location and amount for amortization of costs to obtain and costs to fulfill customer contracts recognized in the Company's Condensed Consolidated Statements of Operations for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Costs to obtain customer contracts: Selling, general and administrative $ 47 $ 38 $ 138 $ 104 Revenue 3 1 7 1 Total Amortization $ 50 $ 39 $ 145 $ 105 Costs to fulfill customer contracts: Costs $ 7 $ 8 $ 21 $ 28 Revenue — 4 — 4 Total Amortization $ 7 $ 12 $ 21 $ 32 |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Supplementary Financial Information [Abstract] | |
Consolidated Statements of Operations Information | The following table presents a summary of Other income, net for the periods indicated: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 OTHER INCOME, NET Interest income $ — $ 1 $ 1 $ 6 Foreign currency gains (losses), net 4 (5) 3 (16) Gain on investments in equity and debt securities, net — 29 — 49 Gain on post-retirement plan settlement — — 14 — Other pension and post-retirement benefit credits, net 7 5 21 16 Change in fair value of emergence date warrants — (3) (27) — Sublease income — 1 1 4 Other, net (1) (1) (2) (3) Total other income, net $ 10 $ 27 $ 11 $ 56 |
Supplemental Cash Flow Information | The following table presents supplemental cash flow information for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 OTHER PAYMENTS Interest payments $ 34 $ 47 $ 126 $ 151 Income tax payments 14 63 23 88 NON-CASH INVESTING ACTIVITIES Increase in Accounts payable and Other liabilities for capital expenditures $ 4 $ 1 $ 2 $ 5 Acquisition of equipment under finance leases 2 5 8 5 During the three months ended June 30, 2021 and 2020, the Company made payments for operating lease liabilities of $14 million and $17 million, respectively, and recorded non-cash additions for operating lease right-of-use assets of $4 million and $14 million, respectively. During the nine months ended June 30, 2021 and 2020, the Company made payments for operating lease liabilities of $47 million and $50 million, respectively, and recorded non-cash additions for operating lease right-of-use assets of $20 million and $29 million, respectively. The following table presents a reconciliation of cash, cash equivalents, and restricted cash that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows for the periods presented: (In millions) June 30, 2021 September 30, 2020 June 30, 2020 September 30, 2019 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH Cash and cash equivalents $ 562 $ 727 $ 742 $ 752 Restricted cash included in other assets 4 4 4 4 Total cash, cash equivalents, and restricted cash $ 566 $ 731 $ 746 $ 756 |
Business Restructuring Reserv_2
Business Restructuring Reserves and Programs (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Restructuring Reserve [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the activity for employee separation costs recognized under the Company's restructuring programs for the nine months ended June 30, 2021: (In millions) Fiscal 2021 Restructuring Program (2) Fiscal 2020 Restructuring Program (2) Fiscal 2008 through 2019 Restructuring Programs (2) Total Accrual balance as of September 30, 2020 $ — $ 8 $ 41 $ 49 Cash payments (2) (2) (13) (17) Restructuring charges 6 — — 6 Adjustments (1) — 1 (1) — Impact of foreign currency fluctuations — — 1 1 Accrual balance as of June 30, 2021 $ 4 $ 7 $ 28 $ 39 |
Restructuring Charges by Activity | The following table summarizes the restructuring charges by activity for the periods presented: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Employee separation costs $ 4 $ 5 $ 6 $ 6 Facility exit costs 1 15 11 21 Total restructuring charges $ 5 $ 20 $ 17 $ 27 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table reflects principal amounts of debt and debt net of discounts and issuance costs for the periods presented: June 30, 2021 September 30, 2020 (In millions) Principal amount Net of discounts and issuance costs Principal amount Net of discounts and issuance costs Senior 6.125% Notes due September 15, 2028 $ 1,000 $ 985 $ 1,000 $ 984 Tranche B Term Loans due December 15, 2024 — — 843 835 Tranche B-1 Term Loans due December 15, 2027 800 779 800 776 Tranche B-2 Term Loans due December 15, 2027 743 736 — — Convertible 2.25% Senior Notes due June 15, 2023 350 306 350 291 Total Long-term debt $ 2,893 $ 2,806 $ 2,993 $ 2,886 |
Convertible Debt | The net carrying amount of the Convertible Notes for the periods indicated was as follows: (In millions) June 30, 2021 September 30, 2020 Principal $ 350 $ 350 Less: Unamortized debt discount (41) (55) Unamortized issuance costs (3) (4) Net carrying amount $ 306 $ 291 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Assumptions Used | The fair value of the Emergence Date Warrants as of June 30, 2021 and September 30, 2020 was determined using the input assumptions summarized below: June 30, September 30, 2020 Expected volatility 74.62 % 68.53 % Risk-free interest rates 0.14 % 0.14 % Contractual remaining life (in years) 1.46 2.21 Price per share of common stock $26.90 $15.20 |
Schedule of Derivative Instruments in Balance Sheet | The following table summarizes the fair value of the Company's derivatives on a gross basis, including accrued interest, segregated between those that are designated as hedging instruments and those that are not designated as hedging instruments: June 30, 2021 September 30, 2020 (In millions) Balance Sheet Caption Asset Liability Asset Liability Derivatives Designated as Hedging Instruments: Interest rate contracts Other assets $ 7 $ — $ — $ — Interest rate contracts Other current liabilities — 43 — 43 Interest rate contracts Other liabilities — 20 — 58 7 63 — 101 Derivatives Not Designated as Hedging Instruments: Interest rate contracts Other current liabilities — 7 — 7 Interest rate contracts Other liabilities — 4 — 9 Foreign exchange contracts Other current assets — — 1 — Foreign exchange contracts Other current liabilities — 1 — 2 Emergence Date Warrants Other liabilities — 35 — 8 — 47 1 26 Total derivative fair value $ 7 $ 110 $ 1 $ 127 |
Derivatives Designated as Cash Flow Hedges | The following tables provide information regarding the location and amount of pre-tax gains (losses) for interest rate swaps designated as cash flow hedges: Three months ended 2021 2020 (In millions) Interest Expense Other Comprehensive (Loss) Income Interest Expense Other Comprehensive (Loss) Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (54) $ (2) $ (51) $ (7) Impact of cash flow hedging relationships: Loss recognized in AOCI on interest rate swaps $ — $ (4) $ — $ (7) Interest expense reclassified from AOCI (13) 13 (11) 11 Nine months ended 2021 2020 (In millions) Interest Expense Other Comprehensive (Loss) Income Interest Expense Other Comprehensive (Loss) Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (169) $ 100 $ (162) $ (52) Impact of cash flow hedging relationships: Gain (loss) recognized in AOCI on interest rate swaps $ — $ 12 $ — $ (57) Interest expense reclassified from AOCI (38) 38 (22) 22 |
Derivatives Not Designated As Hedging Instruments | The following table provides information regarding the pre-tax gains (losses) for derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Operations: Three months ended Nine months ended (In millions) Location of Derivative Pre-tax (Loss) Gain 2021 2020 2021 2020 Emergence Date Warrants Other income, net $ — $ (3) $ (27) $ — Foreign exchange contracts Other income, net 1 — 7 (3) |
Schedule of Outstanding Derivative Positions Presented on a Net Basis | The following table provides information on the Company's derivative positions as if those subject to master netting arrangements were presented on a net basis, allowing for the right to offset by counterparty per the master netting agreements: June 30, 2021 September 30, 2020 (In millions) Asset Liability Asset Liability Gross amounts recognized in the Condensed Consolidated Balance Sheets $ 7 $ 110 $ 1 $ 127 Gross amount subject to offset in master netting arrangements not offset in the Condensed Consolidated Balance Sheets (7) (7) (1) (1) Net amounts $ — $ 103 $ — $ 126 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class | The Company's intangible assets consist of the following for the periods indicated: (In millions) Technology Customer Trademarks and Trade Names Total Balance as of June 30, 2021 Finite-lived intangible assets: Cost $ 964 $ 2,156 $ 42 $ 3,162 Accumulated amortization (614) (550) (20) (1,184) Finite-lived intangible assets, net 350 1,606 22 1,978 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 350 $ 1,606 $ 355 $ 2,311 Balance as of September 30, 2020 Finite-lived intangible assets: Cost $ 961 $ 2,153 $ 42 $ 3,156 Accumulated amortization (482) (433) (18) (933) Finite-lived intangible assets, net 479 1,720 24 2,223 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 479 $ 1,720 $ 357 $ 2,556 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and September 30, 2020 were as follows: June 30, 2021 September 30, 2020 Fair Value Measurements Using Fair Value Measurements Using (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Interest rate contracts $ 7 $ — $ 7 $ — $ — $ — $ — $ — Foreign exchange contracts — — — — 1 — 1 — Total assets $ 7 $ — $ 7 $ — $ 1 $ — $ 1 $ — Liabilities: Interest rate contracts $ 74 $ — $ 74 $ — $ 117 $ — $ 117 $ — Foreign exchange contracts 1 — 1 — 2 — 2 — Emergence Date Warrants 35 — — 35 8 — — 8 Total liabilities $ 110 $ — $ 75 $ 35 $ 127 $ — $ 119 $ 8 |
Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company's Senior Notes, Term Loans, and Convertible Notes as of June 30, 2021 and September 30, 2020 were as follows: June 30, 2021 September 30, 2020 (In millions) Principal amount Fair value Principal amount Fair value Senior 6.125% Notes due September 15, 2028 $ 1,000 $ 1,072 $ 1,000 $ 1,022 Tranche B Term Loans due December 15, 2024 — — 843 838 Tranche B-1 Term Loans due December 15, 2027 800 804 800 786 Tranche B-2 Term Loans due December 15, 2027 743 746 — — Convertible 2.25% Senior Notes due June 15, 2023 350 413 350 331 Total $ 2,893 $ 3,035 $ 2,993 $ 2,977 |
Benefit Obligations (Tables)
Benefit Obligations (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of the pension and post-retirement net periodic benefit (credit) cost for the periods indicated are provided in the table below: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 Pension Benefits - U.S. Components of net periodic benefit credit Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 5 7 15 22 Expected return on plan assets (14) (14) (40) (42) Amortization of actuarial loss — — 1 — Net periodic benefit credit $ (8) $ (6) $ (21) $ (17) Pension Benefits - Non-U.S. Components of net periodic benefit cost Service cost $ 1 $ 2 $ 5 $ 6 Interest cost 2 1 4 3 Net periodic benefit cost $ 3 $ 3 $ 9 $ 9 Post-retirement Benefits - U.S. Components of net periodic benefit cost (credit) Service cost $ — $ 1 $ 1 $ 1 Interest cost 1 2 5 8 Expected return on plan assets — (2) (4) (7) Amortization of prior service credit (1) — (3) (1) Amortization of actuarial loss — — 1 — Settlement gain — — (14) — Net periodic benefit cost (credit) $ — $ 1 $ (14) $ 1 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation by Share-based Payment Award, Fair Value Assumptions | The grant date fair value was determined using a Black-Scholes option pricing model with the following average grant date assumptions: Nine months ended June 30, 2021 Expected volatility (1) 55.27 % Risk-free interest rate (2) 0.05 % Dividend yield (3) — % (1) Expected volatility based on the Company's historical data. (2) Risk-free interest rate based on U.S. Treasury yields with a term equal to the length of the offering period. (3) Dividend yield was assumed to be zero as the Company does not anticipate paying dividends. |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation by Share-based Payment Award, Fair Value Assumptions | The grant date fair value of the Performance PRSUs was determined using a Monte Carlo simulation model that incorporated multiple valuation assumptions, including the probability of achieving the total shareholder return market condition and the following assumptions presented on a weighted-average basis: Nine months ended June 30, 2021 Expected volatility (1) 63.56 % Risk-free interest rate (2) 0.20 % Dividend yield (3) — % (1) Expected volatility based on the Company's historical data. (2) Risk-free interest rate based on U.S. Treasury yields with a term equal to the remaining Performance Period as of the grant date. (3) Dividend yield was assumed to be zero as the Company does not anticipate paying dividends. |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | The following table sets forth the calculation of net income (loss) attributable to common stockholders and the computation of basic and diluted earnings (loss) per share for the periods indicated: Three months ended Nine months ended (In millions, except per share amounts) 2021 2020 2021 2020 Earnings (loss) per share: Numerator Net Income (loss) $ 43 $ 9 $ (19) $ (717) Dividends and accretion to preferred stockholders (1) (1) (3) (7) Undistributed Income (loss) 42 8 (22) (724) Percentage allocated to common stockholders (1) 91.3 % 91.2 % 100.0 % 100.0 % Numerator for basic and diluted earnings (loss) per common share $ 38 $ 7 $ (22) $ (724) Denominator Denominator for basic earnings (loss) per weighted average common shares 84.9 83.1 84.4 95.1 Effect of dilutive securities Restricted stock units 1.6 0.2 — — Performance restricted stock units 0.6 — — — Emergence Date Warrants 0.5 — — — Stock options 0.2 — — — Convertible notes 0.2 — — — Denominator for diluted earnings (loss) per weighted average common shares 88.0 83.3 84.4 95.1 Earnings (loss) per common share Basic $ 0.45 $ 0.08 $ (0.26) $ (7.61) Diluted $ 0.43 $ 0.08 $ (0.26) $ (7.61) (1) Basic weighted average common stock outstanding 84.9 83.1 84.4 95.1 Basic weighted average common stock and common stock equivalents (preferred shares) 93.0 91.1 84.4 95.1 Percentage allocated to common stockholders 91.3 % 91.2 % 100.0 % 100.0 % |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Operating Segments | Summarized financial information relating to the Company's operating segments is shown in the following table for the periods indicated: Three months ended Nine months ended (In millions) 2021 2020 2021 2020 REVENUE Products & Solutions $ 254 $ 262 $ 746 $ 805 Services 478 460 1,468 1,317 Unallocated Amounts (1) — (1) (1) (4) $ 732 $ 721 $ 2,213 $ 2,118 GROSS PROFIT Products & Solutions $ 156 $ 159 $ 451 $ 507 Services 294 282 914 791 Unallocated Amounts (2) (43) (44) (130) (136) 407 397 1,235 1,162 OPERATING EXPENSES Selling, general and administrative 266 232 785 763 Research and development 55 52 167 155 Amortization of intangible assets 40 40 119 122 Impairment of goodwill — — — 624 Restructuring charges, net 5 20 17 27 366 344 1,088 1,691 OPERATING INCOME (LOSS) 41 53 147 (529) INTEREST EXPENSE AND OTHER INCOME, NET (44) (24) (158) (106) (LOSS) INCOME BEFORE INCOME TAXES $ (3) $ 29 $ (11) $ (635) (1) Unallocated amounts in Revenue represent the fair value adjustment to deferred revenue recognized upon emergence from bankruptcy and excluded from segment revenue. (2) Unallocated amounts in Gross Profit include the fair value adjustments recognized upon emergence from bankruptcy and the effect of the amortization of technology intangibles which are excluded from segment gross profit. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of Accumulated other comprehensive loss for the periods indicated were as follows: (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of March 31, 2021 $ (62) $ (31) $ (50) $ (143) Other comprehensive loss before reclassifications — (9) (4) (13) Amounts reclassified to earnings (2) — 13 11 Balance as of June 30, 2021 $ (64) $ (40) $ (41) $ (145) (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of September 30, 2020 $ (108) $ (46) $ (91) $ (245) Other comprehensive income before reclassifications 62 6 12 80 Amounts reclassified to earnings (17) — 38 21 Provision for income taxes (1) — — (1) Balance as of June 30, 2021 $ (64) $ (40) $ (41) $ (145) (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of March 31, 2020 $ (106) $ (13) $ (99) $ (218) Other comprehensive loss before reclassifications — (11) (7) (18) Amounts reclassified to earnings — — 11 11 Balance as of June 30, 2020 $ (106) $ (24) $ (95) $ (225) (In millions) Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of September 30, 2019 $ (106) $ (7) $ (60) $ (173) Other comprehensive loss before reclassifications — (44) (57) (101) Amounts reclassified to earnings — 27 22 49 Balance as of June 30, 2020 $ (106) $ (24) $ (95) $ (225) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Leases, Codification Topic 842 [Abstract] | |
Lease, Cost [Table Text Block] | The following table details the components of net lease expense for the periods indicated: Three months ended Nine months ended In millions 2021 2020 2021 2020 Operating lease cost (1) $ 15 $ 17 $ 45 $ 51 Short-term lease cost (1) 1 1 4 4 Variable lease cost (1)(2) 3 5 10 14 Finance lease amortization of right-of-use assets (1) 1 1 4 3 Sublease income (3) — (1) (1) (4) Total lease cost $ 20 $ 23 $ 62 $ 68 (1) Allocated between Cost of products and services, and Operating expenses. (2) Includes real estate taxes and other charges for non-lease services payable to lessors and recognized in the period incurred. (3) Included in Other income, net. |
Lessee, Finance Leases [Table Text Block] | The Company's right-of-use assets and lease liabilities for financing leases are included in the Condensed Consolidated Balance Sheets as follows: In millions June 30, 2021 September 30, 2020 ASSETS Property, plant and equipment, net $ 16 $ 12 LIABILITIES Other current liabilities 5 8 Other liabilities 12 9 |
Finance and Operating Leases, Liabilities, Maturities [Table Text Block] | The following table presents the maturities of lease payments for the Company's operating and financing leases as of June 30, 2021 (by fiscal year): In millions Operating Leases Financing Leases 2021 (remaining three months) $ 17 $ 1 2022 55 5 2023 41 5 2024 29 4 2025 17 2 2026 11 1 2027 and thereafter 15 — Total lease payments 185 18 Less: imputed interest (20) (1) Total lease liability $ 165 $ 17 |
Financing and Operating Leases, Lease Terms and Interest Rates | The following table summarizes the weighted average remaining lease term and weighted average interest rate for the Company's operating and financing leases for the periods indicated: June 30, 2021 September 30, 2020 Weighted average remaining lease term Operating Leases 4.2 years 4.5 years Financing Leases 3.7 years 2.7 years Weighted average interest rate Operating Leases 5.7 % 6.1 % Financing Leases 4.7 % 5.4 % |
Background and Basis of Prese_2
Background and Basis of Presentation - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | |
Number of segments | segment | 2 | |||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ | $ 43,000,000 | $ (58,000,000) | $ (4,000,000) | $ 9,000,000 | $ (672,000,000) | $ (54,000,000) | $ (19,000,000) | $ (717,000,000) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Narrative (Details) - USD ($) | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Oct. 01, 2020 | Sep. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 145,000,000 | $ 160,000,000 | ||
Operating Lease, Liability, Current | 51,000,000 | 49,000,000 | ||
Restructuring Reserve, Current | 20,000,000 | 21,000,000 | ||
Increase of net cash used in investing activities | (78,000,000) | $ 340,000,000 | ||
Accounts receivable, net | 281,000,000 | 275,000,000 | ||
Inventory | 50,000,000 | 54,000,000 | ||
Contract assets | 447,000,000 | 296,000,000 | ||
Contract costs | 117,000,000 | 115,000,000 | ||
Other current assets | 113,000,000 | 112,000,000 | ||
Intangible assets, net | 2,311,000,000 | 2,556,000,000 | ||
Operating Lease, Liability, Noncurrent | 114,000,000 | 129,000,000 | ||
Restructuring Reserve, Noncurrent | 19,000,000 | 28,000,000 | ||
Property, Plant and Equipment, Net | 288,000,000 | 268,000,000 | ||
Deferred income taxes, net | 45,000,000 | 31,000,000 | ||
Other assets | 193,000,000 | 159,000,000 | ||
Contract liabilities | 387,000,000 | 446,000,000 | ||
Goodwill | 1,482,000,000 | 1,478,000,000 | ||
Other current liabilities | 192,000,000 | 181,000,000 | ||
Deferred income taxes, net | 43,000,000 | 38,000,000 | ||
Other Liabilities, Noncurrent | 305,000,000 | 312,000,000 | ||
Retained Earnings (Accumulated Deficit) | $ (991,000,000) | $ (969,000,000) | ||
Accumulated Deficit | Accounting Standards Update 2016-13 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement, Effect of Change | $ (3,000,000) |
Contract Balances - Impact of A
Contract Balances - Impact of Adoption (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
ASSETS | |||||||||
Accounts receivable, net | $ 281,000,000 | $ 281,000,000 | $ 275,000,000 | ||||||
Inventory | 50,000,000 | 50,000,000 | 54,000,000 | ||||||
Contract assets | 447,000,000 | 447,000,000 | 296,000,000 | ||||||
Contract costs | 117,000,000 | 117,000,000 | 115,000,000 | ||||||
Other current assets | 113,000,000 | 113,000,000 | 112,000,000 | ||||||
Property, plant and equipment, net | 288,000,000 | 288,000,000 | 268,000,000 | ||||||
Deferred income taxes, net | 45,000,000 | 45,000,000 | 31,000,000 | ||||||
Other assets | 193,000,000 | 193,000,000 | 159,000,000 | ||||||
Accounts Payable, Current | 279,000,000 | 279,000,000 | 242,000,000 | ||||||
LIABILITIES | |||||||||
Contract liabilities | 387,000,000 | 387,000,000 | 446,000,000 | ||||||
Other current liabilities | 192,000,000 | 192,000,000 | 181,000,000 | ||||||
Deferred income taxes, net | 43,000,000 | 43,000,000 | 38,000,000 | ||||||
Other liabilities | 305,000,000 | 305,000,000 | 312,000,000 | ||||||
STOCKHOLDERS' EQUITY | |||||||||
Retained Earnings (Accumulated Deficit) | (991,000,000) | (991,000,000) | $ (969,000,000) | ||||||
REVENUE | |||||||||
Revenue | (732,000,000) | $ (721,000,000) | (2,213,000,000) | $ (2,118,000,000) | |||||
Contract with Customer, Liability, Revenue Recognized | 503,000,000 | 500,000,000 | |||||||
COSTS | |||||||||
Cost of Revenue | 325,000,000 | 324,000,000 | 978,000,000 | 956,000,000 | |||||
GROSS PROFIT | (407,000,000) | (397,000,000) | (1,235,000,000) | (1,162,000,000) | |||||
Operating Income (Loss) [Abstract] | |||||||||
OPERATING LOSS | (41,000,000) | (53,000,000) | (147,000,000) | 529,000,000 | |||||
Interest expense | (54,000,000) | (51,000,000) | (169,000,000) | (162,000,000) | |||||
Other income (expense), net | (10,000,000) | (27,000,000) | (11,000,000) | (56,000,000) | |||||
LOSS BEFORE INCOME TAXES | (3,000,000) | 29,000,000 | (11,000,000) | (635,000,000) | |||||
(Provision for) benefit from income taxes | (46,000,000) | 20,000,000 | 8,000,000 | 82,000,000 | |||||
Net income (loss) | 43,000,000 | $ (58,000,000) | $ (4,000,000) | 9,000,000 | $ (672,000,000) | $ (54,000,000) | (19,000,000) | (717,000,000) | |
Products | |||||||||
REVENUE | |||||||||
Revenue | (254,000,000) | (261,000,000) | (746,000,000) | (804,000,000) | |||||
COSTS | |||||||||
Total Cost of Goods and Services | (98,000,000) | (103,000,000) | (295,000,000) | (299,000,000) | |||||
Amortization of technology intangible assets | (43,000,000) | (43,000,000) | (129,000,000) | (130,000,000) | |||||
Services | |||||||||
REVENUE | |||||||||
Revenue | (478,000,000) | (460,000,000) | (1,467,000,000) | (1,314,000,000) | |||||
COSTS | |||||||||
Total Cost of Goods and Services | $ (184,000,000) | $ (178,000,000) | $ (554,000,000) | $ (527,000,000) |
Contract Balances - Narrative (
Contract Balances - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized that was previously recorded as a contract liability | $ 503 | $ 500 | ||
Revenue, Remaining Performance Obligation, Amount | $ 2,400 | $ 2,400 | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 1 | $ (1) | $ (1) |
Contract Balances - Disaggregat
Contract Balances - Disaggregation of Revenue (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | $ 732 | $ 721 | $ 2,213 | $ 2,118 | ||||||
Common Stock | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Shares, Outstanding | 84.4 | 82.9 | 84.4 | 82.9 | 84.7 | 83.8 | 83.3 | 82.7 | 100.5 | 111 |
U.S. | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | $ 418 | $ 415 | $ 1,245 | $ 1,193 | ||||||
International | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 314 | 306 | 968 | 925 | ||||||
Europe, Middle East and Africa | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 181 | 178 | 563 | 536 | ||||||
Asia Pacific | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 72 | 75 | 224 | 222 | ||||||
Americas International - Canada and Latin America | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 61 | 53 | 181 | 167 | ||||||
Unallocated | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 0 | (1) | (1) | (4) | ||||||
Unallocated | U.S. | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 0 | 0 | 0 | (2) | ||||||
Unallocated | International | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 0 | (1) | (1) | (2) | ||||||
Unallocated | Europe, Middle East and Africa | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 0 | 0 | (1) | (1) | ||||||
Unallocated | Asia Pacific | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 0 | (1) | 0 | (1) | ||||||
Unallocated | Americas International - Canada and Latin America | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 0 | 0 | 0 | 0 | ||||||
Operating Segments | Products & Solutions | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 254 | 262 | 746 | 805 | ||||||
Operating Segments | Products & Solutions | U.S. | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 131 | 138 | 359 | 406 | ||||||
Operating Segments | Products & Solutions | International | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 123 | 124 | 387 | 399 | ||||||
Operating Segments | Products & Solutions | Europe, Middle East and Africa | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 76 | 77 | 241 | 248 | ||||||
Operating Segments | Products & Solutions | Asia Pacific | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 27 | 32 | 86 | 92 | ||||||
Operating Segments | Products & Solutions | Americas International - Canada and Latin America | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 20 | 15 | 60 | 59 | ||||||
Operating Segments | Services | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 478 | 460 | 1,468 | 1,317 | ||||||
Operating Segments | Services | U.S. | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 287 | 277 | 886 | 789 | ||||||
Operating Segments | Services | International | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 191 | 183 | 582 | 528 | ||||||
Operating Segments | Services | Europe, Middle East and Africa | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 105 | 101 | 323 | 289 | ||||||
Operating Segments | Services | Asia Pacific | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | 45 | 44 | 138 | 131 | ||||||
Operating Segments | Services | Americas International - Canada and Latin America | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue | $ 41 | $ 38 | $ 121 | $ 108 |
Contract Balances - Transaction
Contract Balances - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 2,400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Percentage | 56.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Percentage | 56.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Percentage | 26.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 26.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Minimum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 13 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 24 months |
Contract Balances - Contract As
Contract Balances - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Document Period End Date | Jun. 30, 2021 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 503 | $ 500 | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 1 | $ (1) | $ (1) | ||
Accounts receivable, net | |||||
Accounts receivable, net | 281 | 281 | $ 275 | ||
Increase (decrease) in accounts receivable, net | 6 | ||||
Contract assets, net: | |||||
Contract assets, current | 447 | 447 | 296 | ||
Increase (decrease) in contract assets, current | 151 | ||||
Contract assets, non-current | 91 | 91 | 71 | ||
Increase (decrease) in contract assets, non-current | 20 | ||||
Total contract assets | 538 | 538 | 367 | ||
Increase (decrease) in total contract assets | 171 | ||||
Cost of obtaining a contract: | |||||
Cost of obtaining a contract, current | 86 | 86 | 92 | ||
Increase (decrease) in cost of obtaining a contract, current | (6) | ||||
Cost of obtaining a contract, non-current | 47 | 47 | 40 | ||
Increase (decrease) in cost of obtaining a contract, non-current | 7 | ||||
Total cost of obtaining a contract | 133 | 133 | 132 | ||
Increase (decrease) in total cost of obtaining a contract | 1 | ||||
Cost to fulfill a contract: | |||||
Cost incurred to fulfill a contract, current | 31 | 31 | 23 | ||
Increase (decrease) in cost incurred to fulfill a contract, current | 8 | ||||
Contract liabilities: | |||||
Contract liabilities, current | 387 | 387 | 446 | ||
Increase (decrease) in contract liabilities, current | (59) | ||||
Contract liabilities, non-current | 326 | 326 | 373 | ||
Increase (decrease) in contract liabilities, non-current | (47) | ||||
Total contract liabilities | $ 713 | 713 | $ 819 | ||
Increase (decrease) in total contract liabilities | $ (106) |
Contract Balances - Allowance f
Contract Balances - Allowance for Credit Losses (Details) - USD ($) | Oct. 01, 2020 | Jun. 30, 2021 | Sep. 30, 2020 |
Accounts Receivable, Change in Method, Credit Loss Expense (Reversal) | $ 1,000,000 | ||
Accounts Receivable, Allowance for Credit Loss | $ 5,000,000 | $ 7,000,000 | |
Provision for Other Credit Losses | (3,000,000) | ||
Allowance for Credit Loss | 7,000,000 | 7,000,000 | |
Change in Method, Credit Loss Expense (Reversal) | 3,000,000 | ||
Credit Loss Expense (Reversal) | (3,000,000) | ||
Contract assets, net | |||
Contract with Customer, Asset, Credit Loss Expense (Reversal) | 0 | ||
Contract with Customer, Asset, Change in Method, Credit Loss Expense (Reversal) | 1,000,000 | ||
Contract with Customer, Asset, Allowance for Credit Loss | (1,000,000) | 0 | |
Contract with Customer, Asset, Allowance for Credit Loss | 1,000,000 | 0 | |
Other assets | |||
Contract with Customer, Asset, Credit Loss Expense (Reversal) | 0 | ||
Contract with Customer, Asset, Change in Method, Credit Loss Expense (Reversal) | $ 1,000,000 | ||
Contract with Customer, Asset, Allowance for Credit Loss | (1,000,000) | 0 | |
Contract with Customer, Asset, Allowance for Credit Loss | $ 1,000,000 | $ 0 |
Contract Costs (Details)
Contract Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Capitalized Contract Cost [Line Items] | ||||
Capitalized Contract Cost, Amortization | $ 50 | $ 39 | $ 145 | $ 105 |
Selling, General and Administrative Expenses [Member] | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized Contract Cost, Amortization | 47 | 38 | 138 | 104 |
Revenue | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized Contract Cost, Amortization | 3 | 1 | 7 | 1 |
Cost of Sales [Member] | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized Contract Cost, Amortization | 7 | 8 | 21 | 28 |
Costs to Fulfill | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized Contract Cost, Amortization | 7 | 12 | 21 | 32 |
Costs to Fulfill | Revenue | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized Contract Cost, Amortization | $ 0 | $ 4 | $ 0 | $ 4 |
Strategic Partnership (Details)
Strategic Partnership (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 03, 2019 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 |
Class of Stock [Line Items] | |||||
Proceeds from strategic partnership | $ 375 | ||||
Proceeds from strategic partnership, share value received | 361 | ||||
Proceeds from strategic partnership, cash portion | $ 14 | ||||
Realized gain (loss) from strategic partnership | $ 29 | $ (59) | |||
Preferred shares issued | 125,000 | 125,000 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 0 | 121 | |||
Preferred Stock, Dividend Rate, Percentage | 3.00% | ||||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 125 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Goodwill [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 333 | $ 333 |
Goodwill [Roll Forward] | ||
Intangible assets, net | 2,311 | 2,556 |
Acquired Technology and Patents [Member] | ||
Goodwill [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 0 | 0 |
Customer relationships and other intangibles | ||
Goodwill [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 0 | 0 |
Trademarks and Trade Names [Member] | ||
Goodwill [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 333 | 333 |
Trademarks and Trade Names [Member] | ||
Goodwill [Roll Forward] | ||
Intangible assets, net | 355 | 357 |
Customer relationships and other intangibles | ||
Goodwill [Roll Forward] | ||
Intangible assets, net | 1,606 | 1,720 |
Acquired Technology and Patents [Member] | ||
Goodwill [Roll Forward] | ||
Intangible assets, net | $ 350 | $ 479 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Goodwill [Line Items] | ||
Goodwill | $ 1,482 | $ 1,478 |
Supplementary Financial Infor_3
Supplementary Financial Information - Consolidated Statements of Operations Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
OTHER INCOME (EXPENSE), NET | ||||
Interest income | $ 0 | $ 1 | $ 1 | $ 6 |
Foreign currency gains (losses), net | 4 | (5) | 3 | (16) |
Marketable Securities, Gain (Loss) | 0 | 0 | 49 | |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 7 | 5 | 21 | 16 |
Change in fair value of emergence date warrants | 0 | (3) | (27) | 0 |
Sublease Income | 0 | 1 | 1 | 4 |
Other, net | (1) | (1) | (2) | (3) |
Total other income (expense), net | 10 | 27 | 11 | 56 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 0 | 14 | 0 |
Other income (expense), net | 10 | 27 | 11 | 56 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (7) | (5) | (21) | (16) |
Change in fair value of emergence date warrants | 0 | 3 | 27 | 0 |
Realized gain (loss) from strategic partnership | 29 | (59) | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 10 | 0 | 10 | |
Post-retirement Benefits | ||||
OTHER INCOME (EXPENSE), NET | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 14 | |||
U.S. | Post-retirement Benefits | ||||
OTHER INCOME (EXPENSE), NET | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 0 | $ 0 | $ 14 | $ 0 |
Supplementary Financial Infor_4
Supplementary Financial Information - Supplementary Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Significant Noncash Transactions [Line Items] | ||||||
Operating Lease, Payments | $ 14 | $ 17 | $ 47 | $ 50 | ||
Restricted Cash, Noncurrent | 4 | 4 | 4 | 4 | $ 4 | $ 4 |
Cash | 562 | 742 | 562 | 742 | 727 | 752 |
OTHER PAYMENTS | ||||||
Interest payments | 34 | 47 | 126 | 151 | ||
Income tax payments | 14 | 63 | 23 | 88 | ||
NON-CASH INVESTING ACTIVITIES | ||||||
Increase (decrease) in Accounts payable for Capital expenditures | 4 | 1 | 2 | 5 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 4 | 14 | 20 | 29 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 566 | 746 | 566 | 746 | $ 731 | $ 756 |
Acquisition of Equipment Under Finance Leases | $ 2 | $ 5 | $ 8 | $ 5 |
Business Restructuring Reserv_3
Business Restructuring Reserves and Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 5 | $ 20 | $ 17 | $ 27 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 49 | |||
Cash payments | (17) | |||
Impact of foreign currency fluctuations | 1 | |||
Restructuring Reserve, ending balance | 39 | 39 | ||
Fiscal 2020 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 8 | |||
Cash payments | (2) | |||
Impact of foreign currency fluctuations | 0 | |||
Restructuring Reserve, ending balance | 7 | 7 | ||
Restructuring Reserve, Accrual Adjustment | 1 | |||
Fiscal 2019 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 6 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 0 | |||
Cash payments | (2) | |||
Impact of foreign currency fluctuations | 0 | |||
Restructuring Reserve, ending balance | 4 | 4 | ||
Restructuring Reserve, Accrual Adjustment | 0 | |||
Fiscal 2008-2018 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 41 | |||
Cash payments | (13) | |||
Impact of foreign currency fluctuations | 1 | |||
Restructuring Reserve, ending balance | 28 | 28 | ||
Restructuring Reserve, Accrual Adjustment | (1) | |||
Restructuring Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Accrual Adjustment | 0 | |||
Employee Separation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 4 | 5 | 6 | 6 |
Facility Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 1 | $ 15 | 11 | $ 21 |
Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 6 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Debt (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | |||||
Document Period End Date | Jun. 30, 2021 | ||||
Principal | $ 2,893,000,000 | $ 2,893,000,000 | $ 2,993,000,000 | ||
Long-term debt, net of current portion | 2,806,000,000 | 2,806,000,000 | 2,886,000,000 | ||
Interest Expense | 54,000,000 | $ 51,000,000 | 169,000,000 | $ 162,000,000 | |
Amortization of Debt Issuance Costs and Discounts | 19,000,000 | 19,000,000 | |||
Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 350,000,000 | 350,000,000 | 350,000,000 | ||
Long-term debt, net of current portion | 306,000,000 | 306,000,000 | 291,000,000 | ||
Interest Expense | 7,000,000 | 21,000,000 | 20,000,000 | ||
Amortization of Debt Issuance Costs and Discounts | 5,000,000 | $ 4,000,000 | 15,000,000 | $ 13,000,000 | |
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||
Long-term debt, net of current portion | 985,000,000 | 985,000,000 | 984,000,000 | ||
Interest Expense | 16,000,000 | 48,000,000 | |||
Term Loan Credit Agreement 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 0 | 0 | 843,000,000 | ||
Long-term debt, net of current portion | 0 | 0 | 835,000,000 | ||
Term Loan Credit Agreement 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 800,000,000 | 800,000,000 | 800,000,000 | ||
Long-term debt, net of current portion | 779,000,000 | 779,000,000 | 776,000,000 | ||
Term Loan Credit Agreement, Tranche B-2, 2027 | |||||
Debt Instrument [Line Items] | |||||
Principal | 743,000,000 | 743,000,000 | 0 | ||
Long-term debt, net of current portion | $ 736,000,000 | $ 736,000,000 | $ 0 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Feb. 24, 2021 | Sep. 30, 2020 | Sep. 25, 2020 | Jun. 11, 2018 | Dec. 15, 2017 | |
Debt Instrument [Line Items] | |||||||||
Document Period End Date | Jun. 30, 2021 | ||||||||
Debt face amount | $ 2,893,000,000 | $ 2,893,000,000 | $ 2,993,000,000 | ||||||
Letters of credit, maximum amount | 150,000,000 | 150,000,000 | |||||||
Letters of credit outstanding | $ 39,000,000 | $ 39,000,000 | |||||||
Weighted average contractual interest rate of debt | 6.50% | 6.50% | 6.50% | ||||||
Interest Expense | $ 54,000,000 | $ 51,000,000 | $ 169,000,000 | $ 162,000,000 | |||||
Repayments of Debt | 100,000,000 | ||||||||
Amortization of Debt Issuance Costs and Discounts | 19,000,000 | 19,000,000 | |||||||
Revolving Credit Facility | ABL Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, current borrowing capacity | $ 200,000,000 | ||||||||
Letter of Credit | ABL Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense on debt | 1,000,000 | 1,000,000 | |||||||
Line of Credit | Letter of Credit | ABL Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Letter of credit, remaining borrowing capacity | 100,000,000 | 100,000,000 | |||||||
Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt face amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||||||
Interest rate, stated percentage | 2.25% | ||||||||
Effective interest rate | 9.20% | 9.20% | 9.20% | ||||||
Interest Expense | $ 7,000,000 | $ 21,000,000 | 20,000,000 | ||||||
Amortization of Debt Issuance Costs and Discounts | 5,000,000 | 4,000,000 | 15,000,000 | 13,000,000 | |||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt face amount | 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | ||||||
Interest rate, stated percentage | 6.125% | ||||||||
Interest Expense | 16,000,000 | 48,000,000 | |||||||
Term Loan Credit Agreement, Tranche B-2, 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt face amount | 743,000,000 | 743,000,000 | $ 0 | ||||||
Term Loan Credit Agreement, Tranche B-2, 2027 | Interest Expense [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Issuance Costs, Net | 3,000,000 | 3,000,000 | |||||||
Write off of Deferred Debt Issuance Cost | 1,000,000 | ||||||||
Term Loan Credit Agreement, Tranche B-2, 2027 | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, stated percentage | 3.00% | ||||||||
Term Loan Credit Agreement, Tranche B-2, 2027 | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, stated percentage | 4.00% | ||||||||
Term Loan Credit Agreement due December 15, 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense on debt | $ 18,000,000 | $ 32,000,000 | $ 60,000,000 | $ 118,000,000 | |||||
Over-Allotment Option | Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt face amount | $ 50,000,000 |
Financing Arrangements - Carryi
Financing Arrangements - Carrying Amount of Convertible Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Principal | $ 2,893 | $ 2,993 |
Less: | ||
Weighted average contractual interest rate of debt | 6.50% | 6.50% |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 350 | $ 350 |
Less: | ||
Unamortized debt discount | (41) | (55) |
Unamortized issuance costs | (3) | (4) |
Net carrying amount | $ 306 | $ 291 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) | Jul. 01, 2020counterparty | May 16, 2018counterparty | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 23, 2020USD ($) | Nov. 14, 2018USD ($) | Dec. 15, 2017$ / sharesshares |
Derivative [Line Items] | ||||||||||||||
Number of counterparties | counterparty | 6 | |||||||||||||
Class of warrant or right, number of securities called by each warrant or right (in shares) | shares | 5,645,200 | |||||||||||||
Class of warrant or right, exercise price of warrants or rights (in USD per share) | $ / shares | $ 25.55 | |||||||||||||
Warrant Repurchase Program, Number of Securities Called by Warrants or Rights, Authorized Amount | $ 15,000,000 | |||||||||||||
Interest expense | $ (54,000,000) | $ (51,000,000) | $ (169,000,000) | $ (162,000,000) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (2,000,000) | $ 85,000,000 | $ 17,000,000 | (7,000,000) | $ (55,000,000) | $ 10,000,000 | 100,000,000 | (52,000,000) | ||||||
Other comprehensive income (loss) before reclassifications | (13,000,000) | (18,000,000) | 80,000,000 | (101,000,000) | ||||||||||
Amounts reclassified to earnings | 11,000,000 | 11,000,000 | 21,000,000 | 49,000,000 | ||||||||||
Unrealized Loss on Term Loan Interest Rate Swap | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Other comprehensive income (loss) before reclassifications | (4,000,000) | (7,000,000) | 12,000,000 | (57,000,000) | ||||||||||
Amounts reclassified to earnings | 13,000,000 | 11,000,000 | 38,000,000 | 22,000,000 | ||||||||||
Derivatives Designated as Hedging Instruments: | Interest Expense [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 0 | 0 | 0 | 0 | ||||||||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (13,000,000) | $ (11,000,000) | (38,000,000) | $ (22,000,000) | ||||||||||
Interest rate contracts | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative fixed interest rate | 2.935% | |||||||||||||
Derivative notional amount | 1,543,000,000 | 1,543,000,000 | $ 1,800,000,000 | |||||||||||
Expected gain (loss) to be reclassified within twelve months | 50,000,000 | |||||||||||||
Deferred Loss, Frozen, To Be Reclassified to Interest Expense | $ 15,000,000 | |||||||||||||
Foreign Exchange Contract [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative notional amount | 173,000,000 | 173,000,000 | $ 375,000,000 | |||||||||||
Forward Interest Rate Swap [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Number of counterparties | counterparty | 4 | |||||||||||||
Derivative fixed interest rate | 0.7047% | |||||||||||||
Derivative notional amount | $ 1,400,000,000 | $ 1,400,000,000 | ||||||||||||
Offsetting Interest Rate Swap [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative fixed interest rate | 0.1745% | |||||||||||||
Derivative notional amount | $ 257,000,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Assumptions Used (Details) | Jun. 30, 2021unityear$ / shares | Sep. 30, 2020yearunit$ / shares |
Expected volatility | ||
Derivative [Line Items] | ||
Warrants, measurement input | 0.7462 | 0.6853 |
Risk-free interest rates | ||
Derivative [Line Items] | ||
Warrants, measurement input | 0.0014 | 0.0014 |
Contractual remaining life (in years) | ||
Derivative [Line Items] | ||
Warrants, measurement input | year | 1.46 | 2.21 |
Measurement Input, Expected Dividend Rate | ||
Derivative [Line Items] | ||
Warrants, measurement input | unit | 0 | 0 |
Warrants | ||
Derivative [Line Items] | ||
Price per share of common stock (in usd per share) | $ / shares | $ 26.90 | $ 15.20 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Derivative [Line Items] | ||
Derivative Asset | $ 7 | $ 1 |
Derivative Liability | 110 | 127 |
Derivatives Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Derivative Asset | 7 | 0 |
Derivative Liability | 63 | 101 |
Derivatives Designated as Hedging Instruments: | Other assets | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 43 | 43 |
Derivatives Designated as Hedging Instruments: | Other liabilities | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 20 | 58 |
Derivatives Designated as Hedging Instruments: | Other assets | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 7 | 0 |
Derivative Liability | 0 | 0 |
Derivatives Not Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 1 |
Derivative Liability | 47 | 26 |
Derivatives Not Designated as Hedging Instruments: | Other assets | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 7 | 7 |
Derivatives Not Designated as Hedging Instruments: | Other assets | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 1 | 2 |
Derivatives Not Designated as Hedging Instruments: | Other liabilities | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 4 | 9 |
Derivatives Not Designated as Hedging Instruments: | Other liabilities | Warrants | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 35 | 8 |
Derivatives Not Designated as Hedging Instruments: | Other Current Assets [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 1 |
Derivative Liability | $ 0 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivatives Designated as Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||||||
Interest expense | $ (54) | $ (51) | $ (169) | $ (162) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (2) | $ 85 | $ 17 | (7) | $ (55) | $ 10 | 100 | (52) |
Interest Expense [Member] | Derivatives Designated as Hedging Instruments: | ||||||||
Derivative [Line Items] | ||||||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 0 | 0 | 0 | 0 | ||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ (13) | $ (11) | $ (38) | $ (22) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 110 | $ 110 | $ 127 | ||
Derivatives Not Designated as Hedging Instruments: | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 47 | 47 | $ 26 | ||
Other income, net | Derivatives Not Designated as Hedging Instruments: | Emergence Date Warrants | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) | 0 | $ (3) | (27) | $ 0 | |
Other income, net | Derivatives Not Designated as Hedging Instruments: | Foreign Exchange Forward [Member] | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) | $ 1 | $ 0 | $ 7 | $ (3) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Presented on a Net Basis (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Derivative [Line Items] | ||
Gross amounts recognized in the consolidated balance sheet, Asset | $ 7 | $ 1 |
Derivative Liability | 110 | 127 |
Gross amount subject to offset in master netting arrangements not offset in the Consolidated Balance Sheet, Asset | (7) | (1) |
Gross amount subject to offset in master netting arrangements not offset in the Consolidated Balance Sheet, Liability | (7) | (1) |
Derivative Asset | 0 | 0 |
Derivative Liability | $ 103 | $ 126 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | $ 3,162 | $ 3,156 |
Accumulated amortization | (1,184) | (933) |
Finite-lived intangible assets, net | 1,978 | 2,223 |
Intangible assets, net | 2,311 | 2,556 |
Acquired technology and patents | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 964 | 961 |
Accumulated amortization | (614) | (482) |
Finite-lived intangible assets, net | 350 | 479 |
Customer relationships and other intangibles | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 2,156 | 2,153 |
Accumulated amortization | (550) | (433) |
Finite-lived intangible assets, net | 1,606 | 1,720 |
Trademarks and trade names | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 42 | 42 |
Accumulated amortization | (20) | (18) |
Finite-lived intangible assets, net | 22 | 24 |
Trademarks and trade names | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 355 | 357 |
Customer relationships and other intangibles | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 1,606 | 1,720 |
Acquired technology and patents | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 350 | $ 479 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 7 | $ 1 |
Liabilities | 110 | 127 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7 | 1 |
Liabilities | 75 | 119 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 35 | 8 |
Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7 | 0 |
Liabilities | 74 | 117 |
Interest rate contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Interest rate contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7 | 0 |
Liabilities | 74 | 117 |
Interest rate contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 1 |
Liabilities | 1 | 2 |
Foreign currency forward contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign currency forward contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 1 |
Liabilities | 1 | 2 |
Foreign currency forward contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 35 | 8 |
Warrants | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Warrants | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Warrants | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 35 | $ 8 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ (10) | $ 0 | $ (10) | |
Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liabilities | 110 | $ 127 | ||
Warrant [Member] | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liabilities | 35 | 8 | ||
Foreign currency forward contracts | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liabilities | 1 | 2 | ||
Level 3 | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liabilities | 35 | 8 | ||
Level 3 | Warrant [Member] | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liabilities | 35 | 8 | ||
Level 3 | Foreign currency forward contracts | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liabilities | $ 0 | $ 0 |
Income Taxes - Income Taxes Nar
Income Taxes - Income Taxes Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Remaining Performance Obligation, Amount | $ 2,400,000,000 | $ 2,400,000,000 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 1512.00% | 48.00% | 94.00% | 34.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 45,000,000 | $ 14,000,000 | $ 10,000,000 | $ 215,000,000 |
Benefit Obligations - Narrative
Benefit Obligations - Narrative (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Accumulated Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 12 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 0 | $ 0 | $ 14 | $ 0 | |
Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 14 | ||||
U.S. | Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | $ 0 | 14 | $ 0 | |
Defined Benefit Plan, Benefit Obligation, Pension Risk Tranfer | 209 | 209 | |||
Defined Benefit Plan, Life Insurance Plan Assets | 190 | 190 | |||
U.S. | Post-retirement Benefits | Other Income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 14 | ||||
U.S. | Postretirement Health Coverage | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions by employer | 9 | ||||
Reimbursement of prior period payments | 2 | ||||
Estimated future employer contributions in current fiscal year | 3 | 3 | |||
Non-US | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions by employer | 19 | ||||
Estimated future employer contributions in current fiscal year | $ 5 | 5 | |||
Not Pre-Funded | U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions by employer | $ 11 |
Benefit Obligations - Component
Benefit Obligations - Components of the Pension and Post-Retirement Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Components of net periodic benefit credit | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 0 | $ 0 | $ (14) | $ 0 |
Post-retirement Benefits | ||||
Components of net periodic benefit credit | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (14) | |||
U.S. | Pension Plan | ||||
Components of net periodic benefit credit | ||||
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 5 | 7 | 15 | 22 |
Expected return on plan assets | (14) | (14) | (40) | (42) |
Net periodic benefit cost (credit) | (8) | (6) | (21) | (17) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 | 1 | 0 |
U.S. | Post-retirement Benefits | ||||
Components of net periodic benefit credit | ||||
Service cost | 0 | 1 | 1 | 1 |
Interest cost | 1 | 2 | 5 | 8 |
Expected return on plan assets | 0 | (2) | (4) | (7) |
Net periodic benefit cost (credit) | 0 | 1 | (14) | 1 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (1) | 0 | (3) | (1) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 | 1 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 0 | (14) | 0 |
Non-US | Pension Plan | ||||
Components of net periodic benefit credit | ||||
Service cost | 1 | 2 | 5 | 6 |
Interest cost | 2 | 1 | 4 | 3 |
Net periodic benefit cost (credit) | $ 3 | $ 3 | $ 9 | $ 9 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 14 | $ 7 | $ 41 | $ 21 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 573,023 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 620,924 | |||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 22.27 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,797,062 | |||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 21.68 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 1,225,889 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 14.84 |
Share-based Compensation - Opti
Share-based Compensation - Options, Narrative (Details) | 9 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 408,990 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 19.53 |
Share-based Compensation - PRSU
Share-based Compensation - PRSU (Details) - Performance Shares [Member] | 9 Months Ended |
Jun. 30, 2021$ / sharesRateshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 63.56% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 22.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 620,924 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Share-based Compensation by Share-based Payment Award, Fair Value Assumptions | The grant date fair value of the Performance PRSUs was determined using a Monte Carlo simulation model that incorporated multiple valuation assumptions, including the probability of achieving the total shareholder return market condition and the following assumptions presented on a weighted-average basis: Nine months ended June 30, 2021 Expected volatility (1) 63.56 % Risk-free interest rate (2) 0.20 % Dividend yield (3) — % (1) Expected volatility based on the Company's historical data. (2) Risk-free interest rate based on U.S. Treasury yields with a term equal to the remaining Performance Period as of the grant date. (3) Dividend yield was assumed to be zero as the Company does not anticipate paying dividends. |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 620,924 |
Share-based Compensation - ESPP
Share-based Compensation - ESPP (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 14 | $ 7 | $ 41 | $ 21 |
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 10 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6.68 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 55.27% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.05% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 21.68 |
Share-based Compensation - Op_2
Share-based Compensation - Options (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 408,990 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 19.53 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 5 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Oct. 01, 2020 | Sep. 30, 2020 | Nov. 14, 2018 | |
Class of Stock [Line Items] | |||||||||||
Preferred Stock, Shares Authorized | 55,000,000 | 55,000,000 | 55,000,000 | ||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 0 | $ 121,000,000 | |||||||||
Strategic Partnership Interest on As-Converted Basis | 9.00% | 9.00% | |||||||||
Document Period End Date | Jun. 30, 2021 | ||||||||||
Strategic Partnership, Minimum Shares Required for Consent Rights | 4,759,339 | ||||||||||
Preferred shares issued | 125,000 | 125,000 | 125,000 | ||||||||
Common stock, shares authorized | 550,000,000 | 550,000,000 | 550,000,000 | ||||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Common stock, shares issued | 84,410,936 | 84,410,936 | 83,278,383 | ||||||||
Common stock, shares outstanding | 84,410,936 | 84,410,936 | 83,278,383 | ||||||||
Warrant repurchase program, authorized amount | $ 15,000,000 | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 500,000,000 | ||||||||||
Stock Repurchased During Period, Shares | 548,456 | 793,662 | |||||||||
Stock Repurchased During Period, Value | $ 27.80 | $ 28.38 | |||||||||
Preferred Stock, Value, Issued | 130,000,000 | 130,000,000 | |||||||||
Temporary Equity, Accretion of Dividends | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | 2,000,000 | |||||
Dividends Payable | $ 5,000,000 | $ 5,000,000 | |||||||||
Preferred Stock, Shares Outstanding | 125,000 | 125,000 | 125,000 | ||||||||
Preferred stock | $ 130,000,000 | $ 130,000,000 | $ 128,000,000 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 147,000,000 | $ 147,000,000 | |||||||||
Series A Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 125,000,000 | ||||||||||
Price per share of common stock (in usd per share) | $ 16 | $ 16 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator | ||||||||
Net income (loss) | $ 43,000,000 | $ (58,000,000) | $ (4,000,000) | $ 9,000,000 | $ (672,000,000) | $ (54,000,000) | $ (19,000,000) | $ (717,000,000) |
Preferred Stock Dividends and Other Adjustments | 1,000,000 | 1,000,000 | 3,000,000 | 7,000,000 | ||||
Undistributed Earnings (Loss) Available to Common Shareholders, Diluted | 42,000,000 | 8,000,000 | (22,000,000) | (724,000,000) | ||||
Undistributed Earnings, Basic | $ 42,000,000 | $ 8,000,000 | $ (22,000,000) | $ (724,000,000) | ||||
Percentage allocated to common stockholders | 91.30% | 91.20% | 100.00% | 100.00% | ||||
Net income (loss) attributable to common stockholders | $ 38,000,000 | $ 7,000,000 | $ (22,000,000) | $ (724,000,000) | ||||
Numerator for basic and diluted earnings (loss) per common share | $ 38,000,000 | $ 7,000,000 | $ (22,000,000) | $ (724,000,000) | ||||
Weighted average shares outstanding | ||||||||
Denominator for basic earnings per weighted average common shares (in shares) | 84,900 | 83,100 | 84,400 | 95,100 | ||||
Earnings (loss) per common share | ||||||||
Basic (in usd per share) | $ 0.45 | $ 0.08 | $ (0.26) | $ (7.61) | ||||
Diluted (in usd per share) | $ 0.43 | $ 0.08 | $ (0.26) | $ (7.61) | ||||
Weighted average number of shares - basic (in shares) | 84,900 | 83,100 | 84,400 | 95,100 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Earnings (loss) per common share | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share | $ 1,600,000 | $ 200,000 | $ 0 | $ 0 | ||||
Performance Shares [Member] | ||||||||
Earnings (loss) per common share | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share | 600,000 | 0 | 0 | 0 | ||||
Warrants | ||||||||
Earnings (loss) per common share | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share | 500,000 | 0 | 0 | 0 | ||||
Convertible Notes | ||||||||
Earnings (loss) per common share | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share | $ 200,000 | $ 0 | $ 0 | $ 0 | ||||
Common Stock | ||||||||
Weighted average shares outstanding | ||||||||
Denominator for basic earnings per weighted average common shares (in shares) | 84,900 | 83,100 | 84,400 | 95,100 | ||||
Earnings (loss) per common share | ||||||||
Weighted average number of shares - basic (in shares) | 84,900 | 83,100 | 84,400 | 95,100 | ||||
Preferred Stock | ||||||||
Weighted average shares outstanding | ||||||||
Denominator for basic earnings per weighted average common shares (in shares) | 93,000 | 91,100 | 84,400 | 95,100 | ||||
Earnings (loss) per common share | ||||||||
Weighted average number of shares - basic (in shares) | 93,000 | 91,100 | 84,400 | 95,100 | ||||
Share-based Payment Arrangement, Option [Member] | ||||||||
Earnings (loss) per common share | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share | $ 200,000 | $ 0 | $ 0 | $ 0 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 11, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Stock Repurchased During Period, Value | $ 27.80 | $ 28.38 | |||
Document Period End Date | Jun. 30, 2021 | ||||
Stock options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,000,000 | 500,000 | 1,000,000 | ||
Performance Shares [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 900,000 | 1,000,000 | 1,600,000 | 1,000,000 | |
Restricted Stock Units (RSUs) [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,100,000 | 3,100,000 | 2,800,000 | ||
Warrants | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,600,000 | 5,600,000 | 5,600,000 | ||
Employee Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,000 | 200,000 | 100,000 | 200,000 | |
Series A Preferred Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 100,000 | 100,000 | 100,000 | 100,000 | |
Convertible Notes | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,600,000 | 12,600,000 | 12,600,000 | ||
Call Spread Option [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Class of Warrant or Right, Outstanding | 12,600,000 |
Operating Segments - Summarized
Operating Segments - Summarized Financial Information of Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Segment Reporting Information | |||||
REVENUE | $ 732 | $ 721 | $ 2,213 | $ 2,118 | |
GROSS PROFIT | 407 | 397 | 1,235 | 1,162 | |
OPERATING EXPENSES | |||||
Selling, general and administrative | 266 | 232 | 785 | 763 | |
Research and development | 55 | 52 | 167 | 155 | |
Restructuring charges, net | 5 | 20 | 17 | 27 | |
TOTAL OPERATING EXPENSES | 366 | 344 | 1,088 | 1,691 | |
OPERATING INCOME (LOSS) | 41 | 53 | 147 | (529) | |
INTEREST EXPENSE AND OTHER INCOME, NET | (44) | (24) | (158) | (106) | |
Total Assets | 6,034 | 6,034 | $ 6,231 | ||
LOSS BEFORE INCOME TAXES | (3) | 29 | (11) | (635) | |
Operating Segments | Products & Solutions | |||||
Segment Reporting Information | |||||
REVENUE | 254 | 262 | 746 | 805 | |
GROSS PROFIT | 156 | 159 | 451 | 507 | |
Operating Segments | Services | |||||
Segment Reporting Information | |||||
REVENUE | 478 | 460 | 1,468 | 1,317 | |
GROSS PROFIT | 294 | 282 | 914 | 791 | |
Unallocated | |||||
Segment Reporting Information | |||||
REVENUE | 0 | (1) | (1) | (4) | |
GROSS PROFIT | $ (43) | $ (44) | $ (130) | $ (136) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Components (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | $ 296,000,000 | $ 204,000,000 | $ 236,000,000 | $ 1,300,000,000 | ||||
Other comprehensive income (loss) before reclassifications | (13,000,000) | (18,000,000) | 80,000,000 | (101,000,000) | ||||
Amounts reclassified to earnings | 11,000,000 | 11,000,000 | 21,000,000 | 49,000,000 | ||||
(Provision for) benefit from income taxes | 1,000,000 | |||||||
Ending Balance | 333,000,000 | 211,000,000 | 333,000,000 | 211,000,000 | ||||
Cumulative translation adjustment | (9,000,000) | (11,000,000) | 6,000,000 | (17,000,000) | ||||
Accumulated other comprehensive loss | (145,000,000) | (145,000,000) | $ (245,000,000) | |||||
Change in Unamortized Pension, Post-retirement and Postemployment Benefit-related Items | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 62,000,000 | 0 | ||||
Amounts reclassified to earnings | (2,000,000) | 0 | (17,000,000) | 0 | ||||
(Provision for) benefit from income taxes | 1,000,000 | |||||||
Accumulated other comprehensive loss | (64,000,000) | (106,000,000) | (64,000,000) | (106,000,000) | $ (62,000,000) | (108,000,000) | $ (106,000,000) | $ (106,000,000) |
Foreign Currency Translation | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other comprehensive income (loss) before reclassifications | (9,000,000) | (11,000,000) | 6,000,000 | (44,000,000) | ||||
Amounts reclassified to earnings | 0 | 0 | 0 | 27,000,000 | ||||
(Provision for) benefit from income taxes | 0 | |||||||
Accumulated other comprehensive loss | (40,000,000) | (24,000,000) | (40,000,000) | (24,000,000) | (31,000,000) | (46,000,000) | (13,000,000) | (7,000,000) |
Unrealized Loss on Term Loan Interest Rate Swap | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other comprehensive income (loss) before reclassifications | (4,000,000) | (7,000,000) | 12,000,000 | (57,000,000) | ||||
Amounts reclassified to earnings | 13,000,000 | 11,000,000 | 38,000,000 | 22,000,000 | ||||
(Provision for) benefit from income taxes | 0 | |||||||
Accumulated other comprehensive loss | (41,000,000) | (95,000,000) | (41,000,000) | (95,000,000) | (50,000,000) | (91,000,000) | (99,000,000) | (60,000,000) |
Accumulated Other Comprehensive (Loss) Income | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (143,000,000) | (218,000,000) | (245,000,000) | (173,000,000) | ||||
Ending Balance | (145,000,000) | (225,000,000) | (145,000,000) | (225,000,000) | ||||
Accumulated other comprehensive loss | $ (145,000,000) | $ (225,000,000) | $ (145,000,000) | $ (225,000,000) | $ (143,000,000) | $ (245,000,000) | $ (218,000,000) | $ (173,000,000) |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 9 Months Ended | ||
Jun. 30, 2021USD ($)director | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Related Party Transaction [Line Items] | |||
Number of directors | director | 8 | ||
Related Party Transactions | Related Party TransactionsThe Company's Board of Directors is comprised of eight directors, including the Company's Chief Executive Officer and seven non-employee directors. Specific Arrangements Involving the Company's Current Directors and Executive Officers William D. Watkins is a Director and Chair of the Board of Directors of the Company and serves on the board of directors of Flex Ltd. ("Flex"), an electronics design manufacturer. For the nine months ended June 30, 2021 and 2020, the Company purchased goods and services from subsidiaries of Flex of $11 million and $20 million, respectively, and sales of goods and services to subsidiaries of Flex were not material for either period. As of June 30, 2021 and September 30, 2020, the Company had outstanding accounts payable due to Flex of $4 million and $3 million, respectively. As of June 30, 2021, outstanding accounts receivable due from Flex were not material. As of September 30, 2020, the Company had outstanding accounts receivable due from Flex of $1 million. Stephan Scholl is a Director of the Company and serves on the board of directors and as Chief Executive Officer of Alight Solutions LLC ("Alight"), a provider of integrated benefits, payroll and cloud solutions. For each of the nine months ended June 30, 2021 and 2020, the Company purchased goods and services from subsidiaries of Alight of $3 million. As of June 30, 2021, outstanding accounts payable due to Alight was not material. As of September 30, 2020, the Company had outstanding accounts payable due to Alight of $1 million. Scott D. Vogel is a Director of the Company and began serving on the board of directors of iQor, a provider of business process outsourcing solutions, during the first quarter of fiscal 2021. For the nine months ended June 30, 2021, the Company sold goods and services to iQor of $1 million. | ||
Flex Ltd | Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related parties | $ 4 | $ 3 | |
Accounts Receivable, Related Parties | 1 | ||
Flex Ltd | Purchased Goods And Services From Flex Ltd. | Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Cost of goods and services sold | 11 | $ 20 | |
Alight Solutions LLC [Member] | Director [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related parties | $ 1 | ||
Alight Solutions LLC [Member] | Purchased Goods and Services From Alight Solutions LLC [Member] | Director [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of goods and services sold | 3 | $ 3 | |
iQor | Goods And Services Sold to iQor | Director [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | $ 1 | ||
Non-Employee Director | |||
Related Party Transaction [Line Items] | |||
Number of directors | director | 7 |
Commitments and Contingencies -
Commitments and Contingencies - General (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2020 |
Loss Contingencies [Line Items] | ||
Amount reserved for product warranties | $ 2 | $ 2 |
Commitments and Contingencies_2
Commitments and Contingencies - Product Warranties (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2021 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Product warranties, maximum term | 2 years | |
Amount reserved for product warranties | $ 2 | $ 2 |
Commitments and Contingencies_3
Commitments and Contingencies - Letters of Credit and Guarantees (Details) $ in Millions | Jun. 30, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Letters of credit, maximum amount | $ 150 |
Restricted cash | 4 |
Standby Letters of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit, maximum amount | $ 61 |
Commitments and Contingencies_4
Commitments and Contingencies - Transactions with Nokia (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2021USD ($) | |
Indemnification Agreement | |
Loss Contingencies [Line Items] | |
Threshold amount of contribution and distribution agreement | $ 50 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease Cost [Line Items] | ||||
Operating Lease, Cost | $ 15 | $ 17 | $ 45 | $ 51 |
Short-term Lease, Cost | 1 | 1 | 4 | 4 |
Variable Lease, Cost | 3 | 5 | 10 | 14 |
Finance Lease, Right-of-Use Asset, Amortization | 1 | 1 | 4 | 3 |
Sublease Income | 0 | (1) | (1) | (4) |
Sublease Income | 0 | 1 | 1 | 4 |
Lease, Cost | $ 20 | $ 23 | $ 62 | $ 68 |
Leases Finance and Operating Le
Leases Finance and Operating Leases, Liabilities, Maturities (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 17,000,000 | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 1,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 55,000,000 | |
Finance Lease, Liability, Payments, Due Year Two | 5,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 41,000,000 | |
Finance Lease, Liability, Payments, Due Year Three | 5,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 29,000,000 | |
Finance Lease, Liability, Payments, Due Year Four | 4,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 17,000,000 | |
Finance Lease, Liability, Payments, Due Year Five | 2,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Six | 11,000,000 | |
Finance Lease, Liability, Payments, Due Year Six | 1,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due | 185,000,000 | |
Finance Lease, Liability, Payment, Due | 18,000,000 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (20,000,000) | |
Finance Lease, Liability, Undiscounted Excess Amount | (1,000,000) | |
Operating Lease, Liability | 165,000,000 | |
Finance Lease, Liability | $ 17,000,000 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 2 months 12 days | 4 years 6 months |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 8 months 12 days | 2 years 8 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.70% | 6.10% |
Finance Lease, Weighted Average Discount Rate, Percent | 4.70% | 5.40% |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments for Operating and Capital Leases (Details) $ in Millions | Jun. 30, 2021USD ($) |
Future Minimum Lease Payments for Operating and Capital Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | $ 15 |
Finance Lease, Liability, Payments, Due after Year Five | $ 0 |
Leases Lessee, Finance Leases (
Leases Lessee, Finance Leases (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset | $ 16,000,000 | $ 12 |
Other Current Liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Current | 5,000,000 | 8 |
Other Liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Noncurrent | $ 12,000,000 | $ 9 |
Leases Narrative (Details)
Leases Narrative (Details) | 9 Months Ended |
Jun. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |
Document Period End Date | Jun. 30, 2021 |
Uncategorized Items - avya-2021
Label | Element | Value |
Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | $ 2,977,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 3,035,000,000 |
Term Loan Credit Agreement, Tranche B-2, 2027 [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 0 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 746,000,000 |
Term Loan Credit Agreement, Tranche B-1, 2027 [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 804,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 786,000,000 |
Term Loan Credit Agreement, Tranche B, 2024 [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 0 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 838,000,000 |
Convertible Debt [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 413,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 331,000,000 |
Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 1,072,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | $ 1,022,000,000 |