Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | ||
Document Fiscal Period Focus | Q2 | |
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 | 2022 | |
Document Period End Date | Mar. 31, 2022 | |
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 | 85,836,560 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): "Facilitation of the Effects of Reference Rate Reform on Financial Reporting". This standard, along with other guidance subsequently issued by the FASB, contains practical expedients for reference rate reform related activities that impact debt, derivatives and other contracts. The guidance in this standard is optional and may be elected at any time as reference rate reform activities occur. The standard may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company intends to use the expedients, if needed, for the reference rate transition. The Company continues to monitor activities related to reference rate reform and does not currently expect this standard to have a material impact on the Company's Condensed Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity." This standard simplifies the accounting for convertible instruments and the application of the derivatives scope exception for contracts in an entity's own equity. The standard also amends the accounting for convertible instruments in the diluted earnings per share calculation and requires enhanced disclosures of convertible instruments and contracts in an entity's own equity. This standard is effective for the Company in the first quarter of fiscal 2023. The adoption may be applied on a modified or fully retrospective basis. An entity may also irrevocably elect the fair value option in accordance with Accounting Standards Codification ("ASC") 825 for any financial instrument that is a convertible security upon adoption of this standard. The Company is currently assessing the impact the new guidance will have on its Condensed Consolidated Financial Statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This standard requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. This standard is effective for the Company in the first quarter of fiscal 2024, with early adoption permitted. The impact of this standard will depend on the nature of future transactions within its scope. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUE | ||||||
Revenue | $ 716,000,000 | $ 738,000,000 | $ 1,429,000,000 | $ 1,481,000,000 | ||
COSTS | ||||||
TOTAL COST OF REVENUE | 345,000,000 | 326,000,000 | 689,000,000 | 653,000,000 | ||
Gross profit | 371,000,000 | 412,000,000 | 740,000,000 | 828,000,000 | ||
OPERATING EXPENSES | ||||||
Selling, general and administrative | 245,000,000 | 264,000,000 | 507,000,000 | 519,000,000 | ||
Research and development | 60,000,000 | 57,000,000 | 121,000,000 | 112,000,000 | ||
Amortization of intangible assets | 40,000,000 | 39,000,000 | 80,000,000 | 79,000,000 | ||
Restructuring charges, net | 3,000,000 | 8,000,000 | 10,000,000 | 12,000,000 | ||
TOTAL OPERATING EXPENSES | 348,000,000 | 368,000,000 | 718,000,000 | 722,000,000 | ||
OPERATING INCOME | 23,000,000 | 44,000,000 | 22,000,000 | 106,000,000 | ||
Interest expense | (54,000,000) | (59,000,000) | (108,000,000) | (115,000,000) | ||
Other income (expense), net | 17,000,000 | 1,000,000 | 24,000,000 | 1,000,000 | ||
LOSS BEFORE INCOME TAXES | (14,000,000) | (14,000,000) | (62,000,000) | (8,000,000) | ||
Benefit from (provision for) income taxes | 13,000,000 | (44,000,000) | (5,000,000) | (54,000,000) | ||
NET INCOME (LOSS) | $ (1,000,000) | $ (66,000,000) | $ (58,000,000) | $ (4,000,000) | $ (67,000,000) | $ (62,000,000) |
LOSS PER SHARE | ||||||
Net income (loss) per common share - basic (in usd per share) | $ (0.02) | $ (0.70) | $ (0.81) | $ (0.76) | ||
Net income (loss) per common share - diluted (in usd per share) | $ (0.02) | $ (0.70) | $ (0.81) | $ (0.76) | ||
Weighted average shares outstanding | ||||||
Weighted average number of shares - basic (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Weighted average number of shares - diluted (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Common Stock | ||||||
Weighted average shares outstanding | ||||||
Weighted average number of shares - basic (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Products | ||||||
REVENUE | ||||||
Revenue | $ 223,000,000 | $ 226,000,000 | $ 454,000,000 | $ 492,000,000 | ||
COSTS | ||||||
Total Cost of Goods and Services | 119,000,000 | 92,000,000 | 230,000,000 | 197,000,000 | ||
Amortization of technology intangible assets | 35,000,000 | 43,000,000 | 77,000,000 | 86,000,000 | ||
Services | ||||||
REVENUE | ||||||
Revenue | 493,000,000 | 512,000,000 | 975,000,000 | 989,000,000 | ||
COSTS | ||||||
Total Cost of Goods and Services | $ 191,000,000 | $ 191,000,000 | $ 382,000,000 | $ 370,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net income (loss) | $ (1,000,000) | $ (58,000,000) | $ (67,000,000) | $ (62,000,000) |
Cumulative translation adjustment | 1,000,000 | 21,000,000 | 14,000,000 | 15,000,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 40,000,000 | 30,000,000 | 68,000,000 | 41,000,000 |
Other comprehensive income | 39,000,000 | 85,000,000 | 79,000,000 | 102,000,000 |
Total comprehensive income | 38,000,000 | 27,000,000 | 12,000,000 | 40,000,000 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | $ (2,000,000) | $ 34,000,000 | $ (3,000,000) | $ 46,000,000 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ (14,000,000) | $ 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ (1,000,000) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 324,000,000 | $ 498,000,000 |
Accounts receivable, net | 315,000,000 | 307,000,000 |
Inventory | 49,000,000 | 51,000,000 |
Contract assets | 640,000,000 | 518,000,000 |
Contract costs | 115,000,000 | 117,000,000 |
Other current assets | 132,000,000 | 100,000,000 |
TOTAL CURRENT ASSETS | 1,575,000,000 | 1,591,000,000 |
Property, plant and equipment, net | 301,000,000 | 295,000,000 |
Deferred income taxes, net | 31,000,000 | 40,000,000 |
Intangible assets, net | 2,078,000,000 | 2,235,000,000 |
Goodwill | 1,476,000,000 | 1,480,000,000 |
Operating Lease, Right-of-Use Asset | 118,000,000 | 135,000,000 |
Other assets | 245,000,000 | 209,000,000 |
TOTAL ASSETS | 5,824,000,000 | 5,985,000,000 |
Current liabilities: | ||
Accounts payable | 306,000,000 | 295,000,000 |
Operating Lease, Liability, Current | 44,000,000 | 49,000,000 |
Restructuring Reserve, Current | 16,000,000 | 19,000,000 |
Payroll and benefit obligations | 128,000,000 | 193,000,000 |
Contract liabilities | 315,000,000 | 360,000,000 |
Business restructuring reserve, current portion | 16,000,000 | 19,000,000 |
Other current liabilities | 139,000,000 | 181,000,000 |
TOTAL CURRENT LIABILITIES | 948,000,000 | 1,097,000,000 |
Non-current liabilities: | ||
Long-term debt | 2,827,000,000 | 2,813,000,000 |
Pension obligations | 607,000,000 | 648,000,000 |
Other post-retirement obligations | 151,000,000 | 153,000,000 |
Deferred income taxes, net | 73,000,000 | 53,000,000 |
Contract liabilities, non-current | 309,000,000 | 305,000,000 |
Operating Lease, Liability, Noncurrent | 87,000,000 | 102,000,000 |
Business restructuring reserve, non-current portion | 19,000,000 | 25,000,000 |
Other liabilities | 240,000,000 | 267,000,000 |
TOTAL NON-CURRENT LIABILITIES | 4,313,000,000 | 4,366,000,000 |
TOTAL LIABILITIES | 5,261,000,000 | 5,463,000,000 |
Preferred stock | 131,000,000 | 130,000,000 |
Operating Lease, Liability, Current | 44,000,000 | 49,000,000 |
STOCKHOLDER'S DEFICIENCY | ||
Common stock | 1,000,000 | 1,000,000 |
Additional paid-in capital | 1,495,000,000 | 1,467,000,000 |
Accumulated deficit | (1,052,000,000) | (985,000,000) |
Accumulated other comprehensive loss | (12,000,000) | (91,000,000) |
TOTAL STOCKHOLDER'S DEFICIENCY | 432,000,000 | 392,000,000 |
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIENCY | 5,824,000,000 | 5,985,000,000 |
Preferred stock | $ 131,000,000 | $ 130,000,000 |
Preferred shares issued | 125,000 | 125,000 |
Common Stock, Shares, Outstanding | 85,677,909 | 84,115,602 |
Shares issued at December 15, 2017 (in shares) | 85,677,909 | 84,115,602 |
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 | Mar. 31, 2022 | Sep. 30, 2021 |
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 | 85,677,909 | 84,115,602 |
Common stock, shares outstanding | 85,677,909 | 84,115,602 |
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 | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member]Accumulated Deficit |
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 | |||||
Dividends, Preferred Stock, Paid-in-kind | 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] | |||||||
Net income (loss) | (62,000,000) | ||||||
Other comprehensive income (loss) | 102,000,000 | ||||||
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] | |||||||
New Accounting Pronouncement, Effect of Change | $ (3,000,000) | $ (3,000,000) | |||||
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 | |||||
Dividends, Preferred Stock, Paid-in-kind | 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 | |||||
Beginning Balance (in shares) at Sep. 30, 2021 | 84,100,000 | ||||||
Beginning Balance at Sep. 30, 2021 | 392,000,000 | $ 1,000,000 | 1,467,000,000 | (985,000,000) | (91,000,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 900,000 | ||||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan | 5,000,000 | 5,000,000 | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 300,000 | ||||||
Amortization of share-based compensation | 14,000,000 | 14,000,000 | |||||
Dividends, Preferred Stock, Cash | 1,000,000 | 1,000,000 | |||||
Net income (loss) | (66,000,000) | ||||||
Other comprehensive income (loss) | 40,000,000 | ||||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (7,000,000) | (7,000,000) | |||||
Ending Balance at Dec. 31, 2021 | 380,000,000 | $ 1,000,000 | 1,481,000,000 | (1,051,000,000) | (51,000,000) | ||
Ending Balance (in shares) at Dec. 31, 2021 | 84,900,000 | ||||||
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 | |||||
Beginning Balance (in shares) at Sep. 30, 2021 | 84,100,000 | ||||||
Beginning Balance at Sep. 30, 2021 | 392,000,000 | $ 1,000,000 | 1,467,000,000 | (985,000,000) | (91,000,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (67,000,000) | ||||||
Other comprehensive income (loss) | 79,000,000 | ||||||
Ending Balance at Mar. 31, 2022 | $ 432,000,000 | $ 1,000,000 | 1,495,000,000 | (1,052,000,000) | (12,000,000) | ||
Ending Balance (in shares) at Mar. 31, 2022 | 85,700,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 531,339 | ||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 84,900,000 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 380,000,000 | $ 1,000,000 | 1,481,000,000 | (1,051,000,000) | (51,000,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock, net of shares redeemed and canceled, under employee stock option plan (in shares) | 700,000 | ||||||
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 | ||||||
Amortization of share-based compensation | 14,000,000 | 14,000,000 | |||||
Dividends, Preferred Stock, Paid-in-kind | 1,000,000 | 1,000,000 | |||||
Net income (loss) | (1,000,000) | ||||||
Other comprehensive income (loss) | 39,000,000 | ||||||
Shares repurchased and retired for tax withholding on vesting of restricted stock units | (3,000,000) | (3,000,000) | |||||
Ending Balance at Mar. 31, 2022 | 432,000,000 | $ 1,000,000 | 1,495,000,000 | $ (1,052,000,000) | $ (12,000,000) | ||
Ending Balance (in shares) at Mar. 31, 2022 | 85,700,000 | ||||||
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 | $ 4,000,000 | $ 4,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | $ 203,000,000 | $ 209,000,000 |
Share-based compensation | 28,000,000 | 27,000,000 |
Amortization of Debt Issuance Costs and Discounts | 14,000,000 | 13,000,000 |
Gain (Loss) on Extinguishment of Debt | 0 | 1,000,000 |
Deferred income taxes, net | 15,000,000 | (4,000,000) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (14,000,000) |
Change in fair value of emergence date warrants | (8,000,000) | 27,000,000 |
Unrealized (gain) loss on foreign currency transactions | (3,000,000) | 12,000,000 |
Other non-cash charges, net | 1,000,000 | 1,000,000 |
Change in Accounts receivable | (6,000,000) | (12,000,000) |
Changes in operating assets and liabilities: | ||
Inventory | 0 | 3,000,000 |
Increase (Decrease) in Operating Lease Right-of-Use Assets and Liabilities | (3,000,000) | 2,000,000 |
Contract assets | (165,000,000) | (122,000,000) |
Contract costs | 1,000,000 | (5,000,000) |
Accounts payable | 12,000,000 | 21,000,000 |
Payroll and benefit obligations | (91,000,000) | (76,000,000) |
Business restructuring reserve | (7,000,000) | (8,000,000) |
Contract liabilities | (38,000,000) | (22,000,000) |
Other assets and liabilities | 1,000,000 | 33,000,000 |
Net cash used for operating activities | (113,000,000) | 24,000,000 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (52,000,000) | (53,000,000) |
Net cash used for investing activities | (52,000,000) | (53,000,000) |
Payments for Repurchase of Common Stock | 0 | (7,000,000) |
Repayments of Long-term Debt | 0 | (743,000,000) |
Proceeds from Issuance of Long-term Debt | 0 | 743,000,000 |
Repayments of Debt | 0 | (100,000,000) |
FINANCING ACTIVITIES: | ||
Payments of Debt Issuance Costs | 0 | (2,000,000) |
NET CASH USED FOR FINANCING ACTIVITIES | (8,000,000) | (108,000,000) |
Effect of exchange rate changes on cash and cash equivalents | (1,000,000) | 3,000,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (174,000,000) | (134,000,000) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 328,000,000 | 597,000,000 |
Net income (loss) | (67,000,000) | (62,000,000) |
Finance Lease, Principal Payments | (4,000,000) | (8,000,000) |
Payments for Other Financing Arrangements | (1,000,000) | 0 |
Proceeds from Other financing arrangements | 0 | 3,000,000 |
Proceeds from Stock Plans | 7,000,000 | 7,000,000 |
Proceeds from Stock Options Exercised | 1,000,000 | 8,000,000 |
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | (1,000,000) | 0 |
Payment, Tax Withholding, Share-based Payment Arrangement | (10,000,000) | (9,000,000) |
U.S. | Post-retirement Benefits | ||
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ (14,000,000) |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Mar. 31, 2022 | |
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 innovative open, converged software 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 its 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, 2021, included in the Company's Annual Report on Form 10-K filed with the SEC on November 22, 2021. 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. The Company uses estimates to assess expected credit losses on its financial assets, sales returns and allowances, the use and recoverability of inventory, the realization of deferred tax assets, annual effective tax rate, the recoverability of long-lived assets, useful lives and impairment of tangible and intangible assets including goodwill, business restructuring reserves, pension and post-retirement benefit costs, the fair value of assets and liabilities in business combinations and the amount of exposure from potential loss contingencies, among others. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the Condensed Consolidated Financial Statements in the period they are determined to be necessary. Actual results could differ from these estimates. The spread of COVID-19, the effects on the Company's employees and the actions required to mitigate its impact have created substantial disruption to the global economy. In addition, we have experienced and are experiencing varying levels of inflation resulting in part from various supply chain disruptions, including, but not limited to increased shipping and transportation costs and increased raw material costs caused by the COVID‐19 pandemic and general global economic conditions. Furthermore, the military conflict between Russia and Ukraine, including the sanctions and export controls that have been imposed by the U.S. and other countries in response to the conflict, severely limits commercial activities in Russia and impacts other markets where we do business. These global issues, among others, 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. The COVID-19 pandemic and the Russia/Ukraine conflict did not have a material impact on the Company's operating results during the second quarter of fiscal 2022. |
Contract Balances
Contract Balances | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 Revenue: Products & Solutions $ 223 $ 226 $ 454 $ 492 Services 493 513 975 990 Unallocated Amounts — (1) — (1) Total Revenue $ 716 $ 738 $ 1,429 $ 1,481 Three months ended March 31, 2022 Three months ended March 31, 2021 (In millions) Products & Solutions Services Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 130 $ 292 $ 422 $ 102 $ 311 $ — $ 413 International: Europe, Middle East and Africa 55 120 175 73 115 (1) 187 Asia Pacific 21 46 67 30 47 — 77 Americas International - Canada and Latin America 17 35 52 21 40 — 61 Total International 93 201 294 124 202 (1) 325 Total Revenue $ 223 $ 493 $ 716 $ 226 $ 513 $ (1) $ 738 Six months ended March 31, 2022 Six months ended March 31, 2021 (In millions) Products & Solutions Services Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 244 $ 553 $ 797 $ 228 $ 599 $ — $ 827 International: Europe, Middle East and Africa 120 247 367 165 218 (1) 382 Asia Pacific 53 95 148 59 93 — 152 Americas International - Canada and Latin America 37 80 117 40 80 — 120 Total International 210 422 632 264 391 (1) 654 Total Revenue $ 454 $ 975 $ 1,429 $ 492 $ 990 $ (1) $ 1,481 Unallocated amounts represent the fair value adjustment to deferred revenue recognized upon the Company's 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 March 31, 2022 was $2.3 billion, of which 52% and 25% 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) March 31, 2022 September 30, 2021 Increase (Decrease) Accounts receivable, net $ 315 $ 307 $ 8 Contract assets, net: Current $ 640 $ 518 $ 122 Non-current (Other assets) 131 88 43 $ 771 $ 606 $ 165 Cost of obtaining a contract: Current (Contract costs) $ 88 $ 89 $ (1) Non-current (Other assets) 54 53 1 $ 142 $ 142 $ — Cost to fulfill a contract: Current (Contract costs) $ 27 $ 28 $ (1) Contract liabilities: Current $ 315 $ 360 $ (45) Non-current 309 305 4 $ 624 $ 665 $ (41) 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 anticipated declines in hardware maintenance and software support services as customers continue to transition to the Company's subscription hybrid offering. The decrease was also driven by revenue earned from the consideration advance received in connection with the strategic partnership with RingCentral, Inc. ("RingCentral"). During the three and six months ended March 31, 2022 and 2021, the Company did not record any asset impairment charges related to contract assets. During the six months ended March 31, 2022 and 2021, the Company recognized revenue of $321 million and $402 million that had been previously recorded as a Contract liability as of October 1, 2021 and October 1, 2020, respectively. During the three months ended March 31, 2022, adjustments for performance obligations that were satisfied, or partially satisfied, in prior periods were not material. During the three months ended March 31, 2021, the Company recognized a decrease to revenue of $1 million, for performance obligations that were satisfied, or partially satisfied, in prior periods. During the six months ended March 31, 2022, the Company recognized a decrease to revenue of $2 million, for performance obligations that were satisfied, or partially satisfied, in prior periods. During the six months ended March 31, 2021, adjustments for performance obligations that were satisfied or partially satisfied, in prior periods were not material. 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 Six months ended (In millions) 2022 2021 2022 2021 Costs to obtain customer contracts: Selling, general and administrative $ 36 $ 48 $ 80 $ 91 Revenue 6 3 10 4 Total Amortization $ 42 $ 51 $ 90 $ 95 Costs to fulfill customer contracts: Costs $ 7 $ 10 $ 15 $ 14 Allowance for Credit Losses The following table presents the change in the allowance for credit losses by portfolio segment for the period indicated: (In millions) Accounts Receivable (1) Short-term Contract Assets (2) Long-term Contract Assets (3) Total Allowance for credit loss as of September 30, 2021 $ 4 $ 1 $ 1 $ 6 Adjustment to credit loss provision 1 — — 1 Allowance for credit loss as of March 31, 2022 $ 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. |
Supplementary Financial Informa
Supplementary Financial Information | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 OTHER INCOME, NET Interest income $ 1 $ 1 $ 1 $ 1 Foreign currency gains (losses), net 2 1 2 (1) Gain on post-retirement plan settlement — 14 — 14 Other pension and post-retirement benefit credits, net 6 7 12 14 Change in fair value of emergence date warrants 7 (22) 8 (27) Sublease income — 1 — 1 Other, net 1 (1) 1 (1) Total other income, net $ 17 $ 1 $ 24 $ 1 The gain on post-retirement plan settlement for the three and six months ended March 31, 2021 is further described in Note 11, "Benefit Obligations." The following table presents supplemental cash flow information for the periods presented: Three months ended Six months ended (In millions) 2022 2021 2022 2021 OTHER PAYMENTS Interest payments $ 60 $ 59 $ 93 $ 92 Income tax payments 6 6 13 9 NON-CASH INVESTING ACTIVITIES Increase (Decrease) in Accounts payable for Capital expenditures $ 1 $ (1) $ (1) $ (2) Acquisition of equipment under finance leases 4 4 4 6 During both the three months ended March 31, 2022 and 2021, the Company made payments for operating lease liabilities of $16 million, and recorded non-cash additions for operating lease right-of-use assets of $4 million and $5 million, respectively. During the six months ended March 31, 2022 and 2021, the Company made payments for operating lease liabilities of $31 million and $33 million, respectively, and recorded non-cash additions for operating lease right-of-use assets of $11 million and $16 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) March 31, 2022 September 30, 2021 March 31, 2021 September 30, 2020 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH Cash and cash equivalents $ 324 $ 498 $ 593 $ 727 Restricted cash included in other assets 4 4 4 4 Total cash, cash equivalents, and restricted cash $ 328 $ 502 $ 597 $ 731 |
Business Restructuring Reserves
Business Restructuring Reserves and Programs | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 Employee separation costs $ 2 $ 1 $ 4 $ 2 Facility exit costs 1 7 6 10 Total restructuring charges $ 3 $ 8 $ 10 $ 12 The Company's employee separation costs generally consist of severance charges which include, but are not limited to, termination payments, pension fund payments, health care and unemployment insurance costs to be paid to, or on behalf of, the affected employees and other associated costs. 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 six months ended March 31, 2022: (In millions) Fiscal 2022 Restructuring Program (1) Fiscal 2021 Restructuring Program (2) Fiscal 2020 and prior Restructuring Programs (2) Total Accrual balance as of September 30, 2021 $ — $ 14 $ 30 $ 44 Cash payments (3) (2) (7) (12) Restructuring charges 4 — — 4 Impact of foreign currency fluctuations 1 (1) (1) (1) Accrual balance as of March 31, 2022 $ 2 $ 11 $ 22 $ 35 (1) Payments related to the fiscal 2022 restructuring program are expected to be completed in fiscal 2022. (2) Payments related to the fiscal 2021 and fiscal 2020 and prior restructuring programs are expected to be completed in fiscal 2027. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 September 30, 2021 (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 $ 987 $ 1,000 $ 986 Tranche B-1 Term Loans due December 15, 2027 800 781 800 780 Tranche B-2 Term Loans due December 15, 2027 743 737 743 736 Convertible 2.25% Senior Notes due June 15, 2023 350 322 350 311 Total Long-term debt $ 2,893 $ 2,827 $ 2,893 $ 2,813 Term Loan and ABL Credit Agreements As of March 31, 2022 and September 30, 2021, 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 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 Condensed Consolidated Statements of Operations during the three and six months ended March 31, 2021. Loans from 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 during the three and six months ended March 31, 2021. For the three months ended March 31, 2022 and 2021, the Company recognized interest expense of $17 million and $22 million, respectively, related to the Term Loan Credit Agreement, including the amortization of the debt discount and issuance costs and the expenses associated with Amendment No. 3 described above. For the six months ended March 31, 2022 and 2021, the Company recognized interest expense of $35 million and $42 million, respectively, related to the Term Loan Credit Agreement, including the amortization of the debt discount and issuance costs and the expenses associated with Amendment No. 3 described above. As of March 31, 2022, 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 March 31, 2022, the Company had issued and outstanding letters of credit and guarantees of $32 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 $32 million of outstanding letters of credit and guarantees was $118 million at March 31, 2022. For each of the three and six months ended March 31, 2022 and 2021, recognized interest expense related to the ABL Credit Agreement was not material. 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 both the three months ended March 31, 2022 and 2021, the Company recognized interest expense of $16 million related to the Senior Notes, including the amortization of debt issuance costs. For both the six months ended March 31, 2022 and 2021, the Company recognized interest expense of $32 million 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 the three months ended March 31, 2022 and 2021, the Company recognized interest expense of $8 million and $7 million related to the Convertible Notes, respectively, which includes $6 million and $5 million of amortization of the debt discount and issuance costs, respectively. For the six months ended March 31, 2022 and 2021, the Company recognized interest expense of $15 million and $14 million related to the Convertible Notes, respectively, which includes $11 million and $10 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) March 31, 2022 September 30, 2021 Principal $ 350 $ 350 Less: Unamortized debt discount (26) (36) Unamortized issuance costs (2) (3) Net carrying amount $ 322 $ 311 The weighted average contractual interest rate of the Company's outstanding debt was 6.5% as of both March 31, 2022 and September 30, 2021, including adjustments related to the Company's interest rate swap agreements (see Note 8, "Derivative Instruments and Hedging Activities"). The effective interest rate for the Term Loan Credit Agreement as of March 31, 2022 and September 30, 2021 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 March 31, 2022 and September 30, 2021 was not materially different than its contractual interest rate. The effective interest rate for the Convertible Notes as of both March 31, 2022 and September 30, 2021 was 9.2%, 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 March 31, 2022, the Company was not in default under any of its debt agreements. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, 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 fixed a portion of the variable interest due under 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 would 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 was $1,400 million. Since their execution, the Forward Swap Agreements were designated as cash flow hedges and deemed highly effective as defined by ASC 815. On March 23, 2022, the Company restructured its Forward Swap Agreements resulting in the receipt of $52 million of net cash proceeds which is reflected within cash used for operating activities in the Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2022. As part of the restructuring, the Company terminated the Forward Swap Agreements and simultaneously entered into new interest rate swap agreements with four counterparties (the "New Forward Swap Agreements"). The New Forward Swap Agreements fix a portion of the variable interest due under the Company's Term Loan Credit Agreement from December 15, 2022 through June 15, 2027. Under the terms of the New Forward Swap Agreements, the Company will pay a fixed rate of 2.5480% and receive a variable rate of interest based on one-month SOFR. The Company's intends to transition its Term Loan Credit Agreement from one-month LIBOR to one-month SOFR effective December 15, 2022. The total notional amount of the New Forward Swap Agreements is $1,000 million. The New Forward Swap Agreements were 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 related to the de-designated Original Swap Agreements, which is reclassified to Interest expense over the term of the Original Swap Agreements. On March 23, 2022, the Company froze a $52 million deferred gain within Accumulated other comprehensive loss related to the termination of the Forward Swap Agreements, which will be reclassified to Interest expense over the term of the original Forward Swap Agreements. Based on the amount in Accumulated other comprehensive loss at March 31, 2022, approximately $13 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 March 31, 2022, the Company maintained open foreign currency forward contracts with a total notional value of $156 million, hedging the British Pound Sterling, Mexican Peso, Czech Koruna and Japanese Yen. As of September 30, 2021, the Company maintained open foreign currency forward contracts with a total notional value of $191 million, primarily hedging the British Pound Sterling, Indian Rupee, Czech Koruna and Mexican Peso. 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 March 31, 2022. 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 March 31, 2022 and September 30, 2021 was determined using the input assumptions summarized below: March 31, September 30, 2021 Expected volatility 62.41 % 49.63 % Risk-free interest rates 1.29 % 0.13 % Contractual remaining life (in years) 0.71 1.21 Price per share of common stock $12.67 $19.79 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 on its common stock 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: March 31, 2022 September 30, 2021 (In millions) Balance Sheet Caption Asset Liability Asset Liability Derivatives Designated as Hedging Instruments: Interest rate contracts Other assets $ — $ — $ 6 $ — Interest rate contracts Other current liabilities — 17 — 43 Interest rate contracts Other liabilities — 4 — 10 — 21 6 53 Derivatives Not Designated as Hedging Instruments: Interest rate contracts Other current liabilities — 5 — 7 Interest rate contracts Other liabilities — — — 2 Foreign exchange contracts Other current liabilities — 1 — 2 Emergence Date Warrants Other current liabilities — 1 — — Emergence Date Warrants Other liabilities — — — 9 — 7 — 20 Total derivative fair value $ — $ 28 $ 6 $ 73 The following table provides information regarding the location and amount of pre-tax gains (losses) for interest rate swaps designated as cash flow hedges: Three months ended 2022 2021 (In millions) Interest Expense Other Comprehensive Income Interest Expense Other Comprehensive Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (54) $ 39 $ (59) $ 85 Impact of cash flow hedging relationships: Gain recognized in AOCI on interest rate swaps — 42 — 17 Interest expense reclassified from AOCI (12) 12 (13) 13 Six months ended 2022 2021 (In millions) Interest Expense Other Comprehensive Income Interest Expense Other Comprehensive Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (108) $ 79 $ (115) $ 102 Impact of cash flow hedging relationships: Gain recognized in AOCI on interest rate swaps — 57 — 16 Interest expense reclassified from AOCI (25) 25 (25) 25 instruments on the Condensed Consolidated Statements of Operations: Three months ended Six months ended (In millions) Location of Derivative Pre-tax Gain (Loss) 2022 2021 2022 2021 Emergence Date Warrants Other income, net $ 7 $ (22) $ 8 $ (27) Foreign exchange contracts Other income, net (1) 1 (1) 6 March 31, 2022 September 30, 2021 (In millions) Asset Liability Asset Liability Gross amounts recognized in the Condensed Consolidated Balance Sheets $ — $ 28 $ 6 $ 73 Gross amount subject to offset in master netting arrangements not offset in the Condensed Consolidated Balance Sheets — — (6) (6) Net amounts $ — $ 28 $ — $ 67 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Mar. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Goodwill and Intangible Assets, net Goodwill 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. The Company determined that no events occurred or circumstances changed during the six months ended March 31, 2022 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. 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 March 31, 2022 Finite-lived intangible assets: Cost $ 971 $ 2,153 $ 42 $ 3,166 Accumulated amortization (732) (666) (23) (1,421) Finite-lived intangible assets, net 239 1,487 19 1,745 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 239 $ 1,487 $ 352 $ 2,078 Balance as of September 30, 2021 Finite-lived intangible assets: Cost $ 971 $ 2,154 $ 42 $ 3,167 Accumulated amortization (656) (588) (21) (1,265) Finite-lived intangible assets, net 315 1,566 21 1,902 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 315 $ 1,566 $ 354 $ 2,235 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. The Company determined that no events occurred or circumstances changed during the six months ended March 31, 2022 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, the Avaya Trade Name, 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2022 | |
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 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 March 31, 2022 and September 30, 2021 were as follows: March 31, 2022 September 30, 2021 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 $ — $ — $ — $ — $ 6 $ — $ 6 $ — Total assets $ — $ — $ — $ — $ 6 $ — $ 6 $ — Liabilities: Interest rate contracts $ 26 $ — $ 26 $ — $ 62 $ — $ 62 $ — Foreign exchange contracts 1 — 1 — 2 — 2 — Emergence Date Warrants 1 — — 1 9 — — 9 Total liabilities $ 28 $ — $ 27 $ 1 $ 73 $ — $ 64 $ 9 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 8, "Derivative Instruments and Hedging Activities." During the three and six months ended March 31, 2022 and 2021, 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 March 31, 2022 and September 30, 2021 were as follows: March 31, 2022 September 30, 2021 (In millions) Principal amount Fair value Principal amount Fair value Senior 6.125% Notes due September 15, 2028 $ 1,000 $ 986 $ 1,000 $ 1,053 Tranche B-1 Term Loans due December 15, 2027 800 795 800 802 Tranche B-2 Term Loans due December 15, 2027 743 737 743 745 Convertible 2.25% Senior Notes due June 15, 2023 350 343 350 368 Total $ 2,893 $ 2,861 $ 2,893 $ 2,968 The estimated fair value of the Company's Senior Notes and Term Loans 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 | 6 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective income tax rate for the three and six months ended March 31, 2022 differed from the U.S. federal tax rate by 72% or $10 million and 29% or $18 million, respectively, principally related to deferred taxes (including losses) generated for which no benefit was recorded because it is more likely than not that the tax benefits would not be realized, the release of reserves from statute of limitation expirations, and nondeductible expenses. The Company's effective income tax rate for the three and six months ended March 31, 2021 differed from the U.S. federal tax rate by 335% or $47 million and 696% or $56 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) generated 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 | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 Pension Benefits - U.S. Components of net periodic benefit credit Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 5 5 10 10 Expected return on plan assets (13) (13) (25) (26) Amortization of actuarial loss — 1 — 1 Net periodic benefit credit $ (7) $ (6) $ (13) $ (13) Pension Benefits - Non-U.S. Components of net periodic benefit cost Service cost $ 1 $ 2 $ 3 $ 4 Interest cost 2 1 3 2 Net periodic benefit cost $ 3 $ 3 $ 6 $ 6 Post-retirement Benefits - U.S. Components of net periodic benefit credit Service cost $ — $ 1 $ — $ 1 Interest cost 1 2 2 4 Expected return on plan assets — (2) — (4) Amortization of prior service credit (2) (1) (3) (2) Amortization of actuarial loss 1 — 1 1 Settlement gain — (14) — (14) Net periodic benefit credit $ — $ (14) $ — $ (14) 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. In March 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 did not make any contributions to the U.S. pension plans during the six months ended March 31, 2022 and does not expect to make any contributions to the U.S. pension plans during the remainder of fiscal 2022. Contributions to the non-U.S. pension plans were $14 million for the six months ended March 31, 2022. For the remainder of fiscal 2022, the Company estimates that it will make contributions totaling $11 million for non-U.S. plans. In March 2021, the Company entered into an irrevocable buy-out agreement with an insurance company to settle $209 million of its post-retirement life insurance projected benefit obligations related to certain salaried and represented retirees and their beneficiaries who had 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 during the three and six months ended March 31, 2021. 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 six months |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | Share-based Compensation As of March 2, 2022, the Board of Directors of the Company and the stockholders of the Company approved an amendment to the Avaya Holdings Corp. 2019 Equity Incentive Plan (as amended, the “2019 Plan”), which increased the number of shares of the Company's common stock that may be issued or granted under the 2019 Plan by 6,500,000 shares. Awards granted under the 2019 Plan reduce the aggregate number of shares of the Company's common stock that may be granted or issued under the 2019 Plan as follows: 2019 Plan Award Reduction to the 2019 Plan Capacity Restricted stock units granted prior to March 2, 2022 1.7 shares Restricted stock units granted on or after March 2, 2022 1.5 shares Stock options and stock appreciation rights (regardless of grant date) 1 share If any awards expire, terminate or are canceled or forfeited for any reason without having been exercised or vested in full, the number of shares of common stock underlying any such award (as described above) will again be available for issuance under the 2019 Plan. Pre-tax share-based compensation expense for the three months ended March 31, 2022 and 2021 was $14 million and $13 million, respectively, and $28 million and $27 million for the six months ended March 31, 2022 and 2021, respectively. Restricted Stock Units During the six months ended March 31, 2022, the Company granted 2,845,320 restricted stock units ("RSUs") with a weighted average grant date fair value of $19.05 per RSU, and there were 1,084,705 RSUs that vested with a weighted average grant date fair value of $16.58 per RSU. Performance Restricted Stock Units During the six months ended March 31, 2022, the Company granted 669,228 performance awards ("PRSUs") with a grant date fair value of $21.89 per PRSU. These PRSUs will vest based on 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 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: Six months ended March 31, 2022 Expected volatility (1) 67.59 % Risk-free interest rate (2) 0.76 % 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 on its common stock. During the six months ended March 31, 2022, there were 274,223 PRSUs that vested with a grant date fair value of $11.18 per PRSU. Stock Bonus Program In November 2021, the Company adopted the Avaya Holdings Corp. Stock Bonus Program ("Stock Bonus Program") under which certain employees can elect to receive a specified percentage of their annual incentive bonus in the form of fully vested shares of the Company’s common stock in lieu of cash. Annually, the Company's Board of Directors will approve the maximum number of shares that can be issued under the Stock Bonus Program. For fiscal 2022, a maximum of 250,000 shares were approved for issuance under the Stock Bonus Program. The number of shares issuable under the Stock Bonus Program will be determined based on the attainment of specified annual performance targets and the average closing price of the Company's common stock over a specified 5-trading day period. The Stock Bonus Program is classified as a liability. The Company records compensation cost for the expected dollar value of the award and will adjust compensation expense for the awards based on its best estimate of attainment of its performance conditions. The cumulative effect of a change in the estimated value of the award will be recognized as an adjustment to earnings in the period of the revision. Pre-tax share-based compensation expense related to the Stock Bonus Program for the three and six months ended March 31, 2022 was not material. Stock Options During the six months ended March 31, 2022, there were 81,832 stock options exercised with an exercise price of $11.38. 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 six months ended March 31, 2022 was $1 million. Employee Stock Purchase Plan During the six months ended March 31, 2022, the Company withheld $7 million of eligible employee compensation for purchases of common stock and issued 531,339 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 six months ended March 31, 2022 was $4.74 per share. The grant date fair value was determined using a Black-Scholes option pricing model with the following average grant date assumptions: Six months ended March 31, 2022 Expected volatility (1) 69.22 % Risk-free interest rate (2) 0.19 % 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 on its common stock. |
Preferred Stock
Preferred Stock | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Capital Stock | Preferred Stock There were 125,000 shares of the Company's 3% Series A Convertible Preferred Stock, par value $0.01 per share ("Series A Preferred Stock") issued and outstanding as of March 31, 2022. 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 March 31, 2022, assuming no holders of options, warrants, convertible notes or similar instruments exercise their exercise or conversion rights. As of March 31, 2022, the carrying value of the Series A Preferred Stock was $131 million, which includes $6 million of accreted dividends paid in kind. During the six months ended March 31, 2022, the carrying value of the Series A Preferred Stock increased $1 million due to accreted dividends paid in kind. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | 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. In periods with net losses, no incremental shares are reflected as their effect would be anti-dilutive. 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 (loss) 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. The following table sets forth the calculation of net loss attributable to common stockholders and the computation of basic and diluted loss per share for the periods indicated: Three months ended Six months ended (In millions, except per share amounts) 2022 2021 2022 2021 Loss per share: Numerator Net loss $ (1) $ (58) $ (67) $ (62) Dividends to preferred stockholders (1) (1) (2) (2) Undistributed loss (2) (59) (69) (64) Percentage allocated to common stockholders (1) 100.0 % 100.0 % 100.0 % 100.0 % Numerator for basic and diluted loss per common share $ (2) $ (59) $ (69) $ (64) Denominator for basic and diluted loss per common share 85.6 84.6 85.1 84.2 Loss per common share Basic $ (0.02) $ (0.70) $ (0.81) $ (0.76) Diluted $ (0.02) $ (0.70) $ (0.81) $ (0.76) (1) Basic weighted average common stock outstanding 85.6 84.6 85.1 84.2 Basic weighted average common stock and common stock equivalents (preferred shares) 85.6 84.6 85.1 84.2 Percentage allocated to common stockholders 100.0 % 100.0 % 100.0 % 100.0 % For the three and six months ended March 31, 2022, the Company excluded 4.1 million RSUs, 0.3 million stock options, 0.2 million shares issuable under the ESPP, 5.6 million Emergence Date Warrants 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 1.8 million PRSUs and 0.3 million shares authorized under the Company's Stock Bonus Program from the diluted loss per share calculation as either their performance metrics have not yet been attained or their effect would have been anti-dilutive. For the three and six months ended March 31, 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 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 |
Operating Segments
Operating Segments | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments The Products & Solutions segment primarily develops, markets, and sells unified communications and collaboration 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, and impairment charges 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 Six months ended (In millions) 2022 2021 2022 2021 REVENUE Products & Solutions $ 223 $ 226 $ 454 $ 492 Services 493 513 975 990 Unallocated Amounts (1) — (1) — (1) $ 716 $ 738 $ 1,429 $ 1,481 GROSS PROFIT Products & Solutions $ 104 $ 134 $ 224 $ 295 Services 302 322 593 620 Unallocated Amounts (2) (35) (44) (77) (87) 371 412 740 828 OPERATING EXPENSES Selling, general and administrative 245 264 507 519 Research and development 60 57 121 112 Amortization of intangible assets 40 39 80 79 Restructuring charges, net 3 8 10 12 348 368 718 722 OPERATING INCOME 23 44 22 106 INTEREST EXPENSE AND OTHER INCOME, NET (37) (58) (84) (114) LOSS BEFORE INCOME TAXES $ (14) $ (14) $ (62) $ (8) (1) Unallocated amounts in Revenue represent the fair value adjustment to deferred revenue recognized upon the Company's emergence from bankruptcy and excluded from segment revenue. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Mar. 31, 2022 | |
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) Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Gain (Loss) on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of December 31, 2021 $ (21) $ (24) $ (6) $ (51) Other comprehensive income before reclassifications — 1 42 43 Amounts reclassified to earnings (2) — 12 10 Provision for income taxes — — (14) (14) Balance as of March 31, 2022 $ (23) $ (23) $ 34 $ (12) (In millions) Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Gain (Loss) on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of September 30, 2021 $ (20) $ (37) $ (34) $ (91) Other comprehensive income before reclassifications — 14 57 71 Amounts reclassified to earnings (3) — 25 22 Provision for income taxes — — (14) (14) Balance as of March 31, 2022 $ (23) $ (23) $ 34 $ (12) (In millions) Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of December 31, 2020 $ (96) $ (52) $ (80) $ (228) Other comprehensive income before reclassifications 50 21 17 88 Amounts reclassified to earnings (15) — 13 (2) Provision for income taxes (1) — — (1) Balance as of March 31, 2021 $ (62) $ (31) $ (50) $ (143) (In millions) 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 15 16 93 Amounts reclassified to earnings (15) — 25 10 Provision for income taxes (1) — — (1) Balance as of March 31, 2021 $ (62) $ (31) $ (50) $ (143) 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 gain (loss) on interest rate swap agreements are recorded in Interest expense. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The 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 Stephan Scholl, a Director of the Company, is the Chief Executive Officer of Alight Solutions LLC ("Alight"), a provider of integrated benefits, payroll and cloud solutions, and he also serves on Alight's board of directors. During both the three months |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2022 | |
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. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Other than as described below, in the opinion of the Company's management, 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, 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. On January 14, 2020, Solaborate Inc. and Solaborate LLC (collectively, “Solaborate”) filed suit against the Company in California Superior Court in San Bernardino County. The dispute concerns activities related to the Company’s development of the CU360 collaboration unit. Solaborate alleges breach of contract, trade secret misappropriation, and unfair business practices, among other causes of action. The Company has cross-claimed, alleging promissory fraud and negligent misrepresentation by Solaborate. As of March 31, 2022, the suit remains in the discovery phase and a trial is scheduled for September 6, 2022. Solaborate has not yet disclosed the amount of damages it seeks, which may include actual and punitive damages and equitable relief. While the Company intends to vigorously defend its interests and pursue the Company’s claims against Solaborate, at this time an outcome cannot be predicted as (i) discovery is not yet complete; (ii) the matter presents legal uncertainties; (iii) there are significant facts in dispute; and (iv) there is a wide range of potential outcomes. As a result, the Company is not able to reasonably estimate the possible loss, or range of loss. 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 March 31, 2022 and September 30, 2021, 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 March 31, 2022, the maximum potential payment obligation with regards to letters of credit, guarantees and surety bonds was $67 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 Sheets as of March 31, 2022. 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. From time to time, the Company also enters into cloud services agreements to support the delivery of the Company’s Avaya OneCloud solutions to its customers. These contracts range from three 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. |
Contract Balances (Tables)
Contract Balances (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 Revenue: Products & Solutions $ 223 $ 226 $ 454 $ 492 Services 493 513 975 990 Unallocated Amounts — (1) — (1) Total Revenue $ 716 $ 738 $ 1,429 $ 1,481 Three months ended March 31, 2022 Three months ended March 31, 2021 (In millions) Products & Solutions Services Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 130 $ 292 $ 422 $ 102 $ 311 $ — $ 413 International: Europe, Middle East and Africa 55 120 175 73 115 (1) 187 Asia Pacific 21 46 67 30 47 — 77 Americas International - Canada and Latin America 17 35 52 21 40 — 61 Total International 93 201 294 124 202 (1) 325 Total Revenue $ 223 $ 493 $ 716 $ 226 $ 513 $ (1) $ 738 Six months ended March 31, 2022 Six months ended March 31, 2021 (In millions) Products & Solutions Services Total Products & Solutions Services Unallocated Total Revenue: U.S. $ 244 $ 553 $ 797 $ 228 $ 599 $ — $ 827 International: Europe, Middle East and Africa 120 247 367 165 218 (1) 382 Asia Pacific 53 95 148 59 93 — 152 Americas International - Canada and Latin America 37 80 117 40 80 — 120 Total International 210 422 632 264 391 (1) 654 Total Revenue $ 454 $ 975 $ 1,429 $ 492 $ 990 $ (1) $ 1,481 Unallocated amounts represent the fair value adjustment to deferred revenue recognized upon the Company's emergence from bankruptcy in December 2017 and excluded from segment revenue. |
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) March 31, 2022 September 30, 2021 Increase (Decrease) Accounts receivable, net $ 315 $ 307 $ 8 Contract assets, net: Current $ 640 $ 518 $ 122 Non-current (Other assets) 131 88 43 $ 771 $ 606 $ 165 Cost of obtaining a contract: Current (Contract costs) $ 88 $ 89 $ (1) Non-current (Other assets) 54 53 1 $ 142 $ 142 $ — Cost to fulfill a contract: Current (Contract costs) $ 27 $ 28 $ (1) Contract liabilities: Current $ 315 $ 360 $ (45) Non-current 309 305 4 $ 624 $ 665 $ (41) |
Allowance for Credit Losses | The following table presents the change in the allowance for credit losses by portfolio segment for the period indicated: (In millions) Accounts Receivable (1) Short-term Contract Assets (2) Long-term Contract Assets (3) Total Allowance for credit loss as of September 30, 2021 $ 4 $ 1 $ 1 $ 6 Adjustment to credit loss provision 1 — — 1 Allowance for credit loss as of March 31, 2022 $ 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. |
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 Six months ended (In millions) 2022 2021 2022 2021 Costs to obtain customer contracts: Selling, general and administrative $ 36 $ 48 $ 80 $ 91 Revenue 6 3 10 4 Total Amortization $ 42 $ 51 $ 90 $ 95 Costs to fulfill customer contracts: Costs $ 7 $ 10 $ 15 $ 14 |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 OTHER INCOME, NET Interest income $ 1 $ 1 $ 1 $ 1 Foreign currency gains (losses), net 2 1 2 (1) Gain on post-retirement plan settlement — 14 — 14 Other pension and post-retirement benefit credits, net 6 7 12 14 Change in fair value of emergence date warrants 7 (22) 8 (27) Sublease income — 1 — 1 Other, net 1 (1) 1 (1) Total other income, net $ 17 $ 1 $ 24 $ 1 The gain on post-retirement plan settlement for the three and six months ended March 31, 2021 is further described in Note 11, "Benefit Obligations." |
Supplemental Cash Flow Information | The following table presents supplemental cash flow information for the periods presented: Three months ended Six months ended (In millions) 2022 2021 2022 2021 OTHER PAYMENTS Interest payments $ 60 $ 59 $ 93 $ 92 Income tax payments 6 6 13 9 NON-CASH INVESTING ACTIVITIES Increase (Decrease) in Accounts payable for Capital expenditures $ 1 $ (1) $ (1) $ (2) Acquisition of equipment under finance leases 4 4 4 6 During both the three months ended March 31, 2022 and 2021, the Company made payments for operating lease liabilities of $16 million, and recorded non-cash additions for operating lease right-of-use assets of $4 million and $5 million, respectively. During the six months ended March 31, 2022 and 2021, the Company made payments for operating lease liabilities of $31 million and $33 million, respectively, and recorded non-cash additions for operating lease right-of-use assets of $11 million and $16 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) March 31, 2022 September 30, 2021 March 31, 2021 September 30, 2020 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH Cash and cash equivalents $ 324 $ 498 $ 593 $ 727 Restricted cash included in other assets 4 4 4 4 Total cash, cash equivalents, and restricted cash $ 328 $ 502 $ 597 $ 731 |
Business Restructuring Reserv_2
Business Restructuring Reserves and Programs (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 six months ended March 31, 2022: (In millions) Fiscal 2022 Restructuring Program (1) Fiscal 2021 Restructuring Program (2) Fiscal 2020 and prior Restructuring Programs (2) Total Accrual balance as of September 30, 2021 $ — $ 14 $ 30 $ 44 Cash payments (3) (2) (7) (12) Restructuring charges 4 — — 4 Impact of foreign currency fluctuations 1 (1) (1) (1) Accrual balance as of March 31, 2022 $ 2 $ 11 $ 22 $ 35 (1) Payments related to the fiscal 2022 restructuring program are expected to be completed in fiscal 2022. (2) Payments related to the fiscal 2021 and fiscal 2020 and prior restructuring programs are expected to be completed in fiscal 2027. |
Restructuring Charges by Activity | The following table summarizes the restructuring charges by activity for the periods presented: Three months ended Six months ended (In millions) 2022 2021 2022 2021 Employee separation costs $ 2 $ 1 $ 4 $ 2 Facility exit costs 1 7 6 10 Total restructuring charges $ 3 $ 8 $ 10 $ 12 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 September 30, 2021 (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 $ 987 $ 1,000 $ 986 Tranche B-1 Term Loans due December 15, 2027 800 781 800 780 Tranche B-2 Term Loans due December 15, 2027 743 737 743 736 Convertible 2.25% Senior Notes due June 15, 2023 350 322 350 311 Total Long-term debt $ 2,893 $ 2,827 $ 2,893 $ 2,813 |
Convertible Debt | The net carrying amount of the Convertible Notes for the periods indicated was as follows: (In millions) March 31, 2022 September 30, 2021 Principal $ 350 $ 350 Less: Unamortized debt discount (26) (36) Unamortized issuance costs (2) (3) Net carrying amount $ 322 $ 311 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Assumptions Used | The fair value of the Emergence Date Warrants as of March 31, 2022 and September 30, 2021 was determined using the input assumptions summarized below: March 31, September 30, 2021 Expected volatility 62.41 % 49.63 % Risk-free interest rates 1.29 % 0.13 % Contractual remaining life (in years) 0.71 1.21 Price per share of common stock $12.67 $19.79 |
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: March 31, 2022 September 30, 2021 (In millions) Balance Sheet Caption Asset Liability Asset Liability Derivatives Designated as Hedging Instruments: Interest rate contracts Other assets $ — $ — $ 6 $ — Interest rate contracts Other current liabilities — 17 — 43 Interest rate contracts Other liabilities — 4 — 10 — 21 6 53 Derivatives Not Designated as Hedging Instruments: Interest rate contracts Other current liabilities — 5 — 7 Interest rate contracts Other liabilities — — — 2 Foreign exchange contracts Other current liabilities — 1 — 2 Emergence Date Warrants Other current liabilities — 1 — — Emergence Date Warrants Other liabilities — — — 9 — 7 — 20 Total derivative fair value $ — $ 28 $ 6 $ 73 |
Derivatives Designated as Cash Flow Hedges | 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 Six months ended (In millions) Location of Derivative Pre-tax Gain (Loss) 2022 2021 2022 2021 Emergence Date Warrants Other income, net $ 7 $ (22) $ 8 $ (27) Foreign exchange contracts Other income, net (1) 1 (1) 6 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table provides information regarding the location and amount of pre-tax gains (losses) for interest rate swaps designated as cash flow hedges: Three months ended 2022 2021 (In millions) Interest Expense Other Comprehensive Income Interest Expense Other Comprehensive Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (54) $ 39 $ (59) $ 85 Impact of cash flow hedging relationships: Gain recognized in AOCI on interest rate swaps — 42 — 17 Interest expense reclassified from AOCI (12) 12 (13) 13 Six months ended 2022 2021 (In millions) Interest Expense Other Comprehensive Income Interest Expense Other Comprehensive Income Financial Statement Line Item in which Cash Flow Hedges are Recorded $ (108) $ 79 $ (115) $ 102 Impact of cash flow hedging relationships: Gain recognized in AOCI on interest rate swaps — 57 — 16 Interest expense reclassified from AOCI (25) 25 (25) 25 |
Offsetting Assets and Liabilities | 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: March 31, 2022 September 30, 2021 (In millions) Asset Liability Asset Liability Gross amounts recognized in the Condensed Consolidated Balance Sheets $ — $ 28 $ 6 $ 73 Gross amount subject to offset in master netting arrangements not offset in the Condensed Consolidated Balance Sheets — — (6) (6) Net amounts $ — $ 28 $ — $ 67 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Finite-lived intangible assets: Cost $ 971 $ 2,153 $ 42 $ 3,166 Accumulated amortization (732) (666) (23) (1,421) Finite-lived intangible assets, net 239 1,487 19 1,745 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 239 $ 1,487 $ 352 $ 2,078 Balance as of September 30, 2021 Finite-lived intangible assets: Cost $ 971 $ 2,154 $ 42 $ 3,167 Accumulated amortization (656) (588) (21) (1,265) Finite-lived intangible assets, net 315 1,566 21 1,902 Indefinite-lived intangible assets — — 333 333 Intangible assets, net $ 315 $ 1,566 $ 354 $ 2,235 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and September 30, 2021 were as follows: March 31, 2022 September 30, 2021 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 $ — $ — $ — $ — $ 6 $ — $ 6 $ — Total assets $ — $ — $ — $ — $ 6 $ — $ 6 $ — Liabilities: Interest rate contracts $ 26 $ — $ 26 $ — $ 62 $ — $ 62 $ — Foreign exchange contracts 1 — 1 — 2 — 2 — Emergence Date Warrants 1 — — 1 9 — — 9 Total liabilities $ 28 $ — $ 27 $ 1 $ 73 $ — $ 64 $ 9 |
Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company's Senior Notes, Term Loans and Convertible Notes as of March 31, 2022 and September 30, 2021 were as follows: March 31, 2022 September 30, 2021 (In millions) Principal amount Fair value Principal amount Fair value Senior 6.125% Notes due September 15, 2028 $ 1,000 $ 986 $ 1,000 $ 1,053 Tranche B-1 Term Loans due December 15, 2027 800 795 800 802 Tranche B-2 Term Loans due December 15, 2027 743 737 743 745 Convertible 2.25% Senior Notes due June 15, 2023 350 343 350 368 Total $ 2,893 $ 2,861 $ 2,893 $ 2,968 |
Benefit Obligations (Tables)
Benefit Obligations (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 Pension Benefits - U.S. Components of net periodic benefit credit Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 5 5 10 10 Expected return on plan assets (13) (13) (25) (26) Amortization of actuarial loss — 1 — 1 Net periodic benefit credit $ (7) $ (6) $ (13) $ (13) Pension Benefits - Non-U.S. Components of net periodic benefit cost Service cost $ 1 $ 2 $ 3 $ 4 Interest cost 2 1 3 2 Net periodic benefit cost $ 3 $ 3 $ 6 $ 6 Post-retirement Benefits - U.S. Components of net periodic benefit credit Service cost $ — $ 1 $ — $ 1 Interest cost 1 2 2 4 Expected return on plan assets — (2) — (4) Amortization of prior service credit (2) (1) (3) (2) Amortization of actuarial loss 1 — 1 1 Settlement gain — (14) — (14) Net periodic benefit credit $ — $ (14) $ — $ (14) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reduction Capacity of Awards Granted | Awards granted under the 2019 Plan reduce the aggregate number of shares of the Company's common stock that may be granted or issued under the 2019 Plan as follows: 2019 Plan Award Reduction to the 2019 Plan Capacity Restricted stock units granted prior to March 2, 2022 1.7 shares Restricted stock units granted on or after March 2, 2022 1.5 shares Stock options and stock appreciation rights (regardless of grant date) 1 share |
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: Six months ended March 31, 2022 Expected volatility (1) 69.22 % Risk-free interest rate (2) 0.19 % 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 on its common stock. |
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 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: Six months ended March 31, 2022 Expected volatility (1) 67.59 % Risk-free interest rate (2) 0.76 % 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 on its common stock. |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | The following table sets forth the calculation of net loss attributable to common stockholders and the computation of basic and diluted loss per share for the periods indicated: Three months ended Six months ended (In millions, except per share amounts) 2022 2021 2022 2021 Loss per share: Numerator Net loss $ (1) $ (58) $ (67) $ (62) Dividends to preferred stockholders (1) (1) (2) (2) Undistributed loss (2) (59) (69) (64) Percentage allocated to common stockholders (1) 100.0 % 100.0 % 100.0 % 100.0 % Numerator for basic and diluted loss per common share $ (2) $ (59) $ (69) $ (64) Denominator for basic and diluted loss per common share 85.6 84.6 85.1 84.2 Loss per common share Basic $ (0.02) $ (0.70) $ (0.81) $ (0.76) Diluted $ (0.02) $ (0.70) $ (0.81) $ (0.76) (1) Basic weighted average common stock outstanding 85.6 84.6 85.1 84.2 Basic weighted average common stock and common stock equivalents (preferred shares) 85.6 84.6 85.1 84.2 Percentage allocated to common stockholders 100.0 % 100.0 % 100.0 % 100.0 % |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended (In millions) 2022 2021 2022 2021 REVENUE Products & Solutions $ 223 $ 226 $ 454 $ 492 Services 493 513 975 990 Unallocated Amounts (1) — (1) — (1) $ 716 $ 738 $ 1,429 $ 1,481 GROSS PROFIT Products & Solutions $ 104 $ 134 $ 224 $ 295 Services 302 322 593 620 Unallocated Amounts (2) (35) (44) (77) (87) 371 412 740 828 OPERATING EXPENSES Selling, general and administrative 245 264 507 519 Research and development 60 57 121 112 Amortization of intangible assets 40 39 80 79 Restructuring charges, net 3 8 10 12 348 368 718 722 OPERATING INCOME 23 44 22 106 INTEREST EXPENSE AND OTHER INCOME, NET (37) (58) (84) (114) LOSS BEFORE INCOME TAXES $ (14) $ (14) $ (62) $ (8) (1) Unallocated amounts in Revenue represent the fair value adjustment to deferred revenue recognized upon the Company's emergence from bankruptcy and excluded from segment revenue. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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) Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Gain (Loss) on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of December 31, 2021 $ (21) $ (24) $ (6) $ (51) Other comprehensive income before reclassifications — 1 42 43 Amounts reclassified to earnings (2) — 12 10 Provision for income taxes — — (14) (14) Balance as of March 31, 2022 $ (23) $ (23) $ 34 $ (12) (In millions) Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Gain (Loss) on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of September 30, 2021 $ (20) $ (37) $ (34) $ (91) Other comprehensive income before reclassifications — 14 57 71 Amounts reclassified to earnings (3) — 25 22 Provision for income taxes — — (14) (14) Balance as of March 31, 2022 $ (23) $ (23) $ 34 $ (12) (In millions) Pension, Post-retirement and Postemployment Benefit-related Items Foreign Currency Translation Unrealized Loss on Interest Rate Swaps Accumulated Other Comprehensive Loss Balance as of December 31, 2020 $ (96) $ (52) $ (80) $ (228) Other comprehensive income before reclassifications 50 21 17 88 Amounts reclassified to earnings (15) — 13 (2) Provision for income taxes (1) — — (1) Balance as of March 31, 2021 $ (62) $ (31) $ (50) $ (143) (In millions) 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 15 16 93 Amounts reclassified to earnings (15) — 25 10 Provision for income taxes (1) — — (1) Balance as of March 31, 2021 $ (62) $ (31) $ (50) $ (143) |
Background and Basis of Prese_2
Background and Basis of Presentation - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Number of segments | segment | 2 | |||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ | $ (1,000,000) | $ (66,000,000) | $ (58,000,000) | $ (4,000,000) | $ (67,000,000) | $ (62,000,000) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Narrative (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 118,000,000 | $ 135,000,000 | |
Operating Lease, Liability, Current | 44,000,000 | 49,000,000 | |
Restructuring Reserve, Current | 16,000,000 | 19,000,000 | |
Increase of net cash used in investing activities | (52,000,000) | $ (53,000,000) | |
Accounts receivable, net | 315,000,000 | 307,000,000 | |
Inventory | 49,000,000 | 51,000,000 | |
Contract assets | 640,000,000 | 518,000,000 | |
Contract costs | 115,000,000 | 117,000,000 | |
Other current assets | 132,000,000 | 100,000,000 | |
Intangible assets, net | 2,078,000,000 | 2,235,000,000 | |
Operating Lease, Liability, Noncurrent | 87,000,000 | 102,000,000 | |
Restructuring Reserve, Noncurrent | 19,000,000 | 25,000,000 | |
Property, Plant and Equipment, Net | 301,000,000 | 295,000,000 | |
Deferred income taxes, net | 31,000,000 | 40,000,000 | |
Other assets | 245,000,000 | 209,000,000 | |
Contract liabilities | 315,000,000 | 360,000,000 | |
Goodwill | 1,476,000,000 | 1,480,000,000 | |
Other current liabilities | 139,000,000 | 181,000,000 | |
Deferred income taxes, net | 73,000,000 | 53,000,000 | |
Other Liabilities, Noncurrent | 240,000,000 | 267,000,000 | |
Retained Earnings (Accumulated Deficit) | $ (1,052,000,000) | $ (985,000,000) |
Contract Balances - Impact of A
Contract Balances - Impact of Adoption (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
ASSETS | |||||||
Accounts receivable, net | $ 315,000,000 | $ 315,000,000 | $ 307,000,000 | ||||
Inventory | 49,000,000 | 49,000,000 | 51,000,000 | ||||
Contract assets | 640,000,000 | 640,000,000 | 518,000,000 | ||||
Contract costs | 115,000,000 | 115,000,000 | 117,000,000 | ||||
Other current assets | 132,000,000 | 132,000,000 | 100,000,000 | ||||
Property, plant and equipment, net | 301,000,000 | 301,000,000 | 295,000,000 | ||||
Deferred income taxes, net | 31,000,000 | 31,000,000 | 40,000,000 | ||||
Other assets | 245,000,000 | 245,000,000 | 209,000,000 | ||||
Accounts Payable, Current | 306,000,000 | 306,000,000 | 295,000,000 | ||||
LIABILITIES | |||||||
Contract liabilities | 315,000,000 | 315,000,000 | 360,000,000 | ||||
Other current liabilities | 139,000,000 | 139,000,000 | 181,000,000 | ||||
Deferred income taxes, net | 73,000,000 | 73,000,000 | 53,000,000 | ||||
Other liabilities | 240,000,000 | 240,000,000 | 267,000,000 | ||||
STOCKHOLDERS' EQUITY | |||||||
Retained Earnings (Accumulated Deficit) | (1,052,000,000) | (1,052,000,000) | $ (985,000,000) | ||||
REVENUE | |||||||
Revenue | (716,000,000) | $ (738,000,000) | (1,429,000,000) | $ (1,481,000,000) | |||
Contract with Customer, Liability, Revenue Recognized | 321,000,000 | 402,000,000 | |||||
COSTS | |||||||
Cost of Revenue | 345,000,000 | 326,000,000 | 689,000,000 | 653,000,000 | |||
GROSS PROFIT | (371,000,000) | (412,000,000) | (740,000,000) | (828,000,000) | |||
Operating Income (Loss) [Abstract] | |||||||
OPERATING LOSS | (23,000,000) | (44,000,000) | (22,000,000) | (106,000,000) | |||
Interest expense | (54,000,000) | (59,000,000) | (108,000,000) | (115,000,000) | |||
Other income (expense), net | (17,000,000) | (1,000,000) | (24,000,000) | (1,000,000) | |||
LOSS BEFORE INCOME TAXES | (14,000,000) | (14,000,000) | (62,000,000) | (8,000,000) | |||
(Provision for) benefit from income taxes | (13,000,000) | 44,000,000 | 5,000,000 | 54,000,000 | |||
Net income (loss) | (1,000,000) | $ (66,000,000) | (58,000,000) | $ (4,000,000) | (67,000,000) | (62,000,000) | |
Products | |||||||
REVENUE | |||||||
Revenue | (223,000,000) | (226,000,000) | (454,000,000) | (492,000,000) | |||
COSTS | |||||||
Total Cost of Goods and Services | (119,000,000) | (92,000,000) | (230,000,000) | (197,000,000) | |||
Amortization of technology intangible assets | (35,000,000) | (43,000,000) | (77,000,000) | (86,000,000) | |||
Services | |||||||
REVENUE | |||||||
Revenue | (493,000,000) | (512,000,000) | (975,000,000) | (989,000,000) | |||
COSTS | |||||||
Total Cost of Goods and Services | $ (191,000,000) | $ (191,000,000) | $ (382,000,000) | $ (370,000,000) |
Contract Balances - Narrative (
Contract Balances - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized that was previously recorded as a contract liability | $ 321,000,000 | $ 402,000,000 | |
Revenue, Remaining Performance Obligation, Amount | 2,300,000,000 | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ (1,000,000) | $ (2,000,000) |
Contract Balances - Disaggregat
Contract Balances - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | $ 716,000,000 | $ 738,000,000 | $ 1,429,000,000 | $ 1,481,000,000 | ||||
Common Stock | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Shares, Outstanding | 85,700,000 | 84,700,000 | 85,700,000 | 84,700,000 | 84,900,000 | 84,100,000 | 83,800,000 | 83,300,000 |
U.S. | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | $ 422,000,000 | $ 413,000,000 | $ 797,000,000 | $ 827,000,000 | ||||
Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 67,000,000 | 77,000,000 | 148,000,000 | 152,000,000 | ||||
Americas International - Canada and Latin America | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 52,000,000 | 61,000,000 | 117,000,000 | 120,000,000 | ||||
EMEA | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 175,000,000 | 187,000,000 | 367,000,000 | 382,000,000 | ||||
International | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 294,000,000 | 325,000,000 | 632,000,000 | 654,000,000 | ||||
Unallocated | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 0 | (1,000,000) | 0 | (1,000,000) | ||||
Unallocated | U.S. | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 0 | 0 | ||||||
Unallocated | Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 0 | 0 | ||||||
Unallocated | Americas International - Canada and Latin America | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 0 | 0 | ||||||
Unallocated | EMEA | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | (1,000,000) | (1,000,000) | ||||||
Unallocated | International | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | (1,000,000) | (1,000,000) | ||||||
Operating Segments | Products & Solutions | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 223,000,000 | 226,000,000 | 454,000,000 | 492,000,000 | ||||
Operating Segments | Products & Solutions | U.S. | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 130,000,000 | 102,000,000 | 244,000,000 | 228,000,000 | ||||
Operating Segments | Products & Solutions | Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 21,000,000 | 30,000,000 | 53,000,000 | 59,000,000 | ||||
Operating Segments | Products & Solutions | Americas International - Canada and Latin America | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 17,000,000 | 21,000,000 | 37,000,000 | 40,000,000 | ||||
Operating Segments | Products & Solutions | EMEA | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 55,000,000 | 73,000,000 | 120,000,000 | 165,000,000 | ||||
Operating Segments | Products & Solutions | International | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 93,000,000 | 124,000,000 | 210,000,000 | 264,000,000 | ||||
Operating Segments | Services | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 493,000,000 | 513,000,000 | 975,000,000 | 990,000,000 | ||||
Operating Segments | Services | U.S. | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 292,000,000 | 311,000,000 | 553,000,000 | 599,000,000 | ||||
Operating Segments | Services | Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 46,000,000 | 47,000,000 | 95,000,000 | 93,000,000 | ||||
Operating Segments | Services | Americas International - Canada and Latin America | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 35,000,000 | 40,000,000 | 80,000,000 | 80,000,000 | ||||
Operating Segments | Services | EMEA | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 120,000,000 | 115,000,000 | 247,000,000 | 218,000,000 | ||||
Operating Segments | Services | International | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | $ 201,000,000 | $ 202,000,000 | $ 422,000,000 | $ 391,000,000 |
Contract Balances - Transaction
Contract Balances - Transaction Price Allocated to the Remaining Performance Obligations (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2021 | Mar. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, amount | $ 2,300,000,000 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ (1,000,000) | $ (2,000,000) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, Remaining Performance Obligation, Percentage | 52.00% | |
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 | 52.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, Remaining Performance Obligation, Percentage | 25.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Percentage | 25.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | 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]: 2023-04-01 | 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 ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Document Period End Date | Mar. 31, 2022 | |||
Contract with Customer, Liability, Revenue Recognized | $ 321,000,000 | $ 402,000,000 | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ (1,000,000) | (2,000,000) | ||
Increase (Decrease) in Accounts receivable, net | 8,000,000 | |||
Accounts receivable, net | ||||
Accounts receivable, net | 315,000,000 | $ 307,000,000 | ||
Increase (decrease) in accounts receivable, net | 6,000,000 | $ 12,000,000 | ||
Contract assets, net: | ||||
Contract assets, current | 640,000,000 | 518,000,000 | ||
Increase (decrease) in contract assets, current | 122,000,000 | |||
Contract assets, non-current | 131,000,000 | 88,000,000 | ||
Increase (decrease) in contract assets, non-current | 43,000,000 | |||
Total contract assets | 771,000,000 | 606,000,000 | ||
Increase (decrease) in total contract assets | 165,000,000 | |||
Cost of obtaining a contract: | ||||
Total cost of obtaining a contract | 142,000,000 | 142,000,000 | ||
Increase (decrease) in total cost of obtaining a contract | 0 | |||
Cost to fulfill a contract: | ||||
Increase (decrease) in cost incurred to fulfill a contract, current | (1,000,000) | |||
Contract liabilities: | ||||
Contract liabilities, current | 315,000,000 | 360,000,000 | ||
Increase (decrease) in contract liabilities, current | (45,000,000) | |||
Contract liabilities, non-current | 309,000,000 | 305,000,000 | ||
Increase (decrease) in contract liabilities, non-current | 4,000,000 | |||
Total contract liabilities | 624,000,000 | $ 665,000,000 | ||
Increase (decrease) in total contract liabilities | $ (41,000,000) |
Contract Balances - Allowance f
Contract Balances - Allowance for Credit Losses (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2021 | |
Allowance for Credit Loss | $ 7,000,000 | $ 6,000,000 |
Credit Loss Expense (Reversal) | 1,000,000 | |
Contract assets, net | ||
Contract with Customer, Asset, Credit Loss Expense (Reversal) | 0 | |
Contract with Customer, Asset, Allowance for Credit Loss | (1,000,000) | (1,000,000) |
Contract with Customer, Asset, Allowance for Credit Loss | 1,000,000 | 1,000,000 |
Other assets | ||
Contract with Customer, Asset, Credit Loss Expense (Reversal) | 0 | |
Contract with Customer, Asset, Allowance for Credit Loss | (1,000,000) | (1,000,000) |
Contract with Customer, Asset, Allowance for Credit Loss | 1,000,000 | 1,000,000 |
Accounts Receivable | ||
Accounts Receivable, Allowance for Credit Loss | 5,000,000 | $ 4,000,000 |
Provision for Other Credit Losses | $ 1,000,000 |
Contract Costs (Details)
Contract Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Amortization | $ 42,000,000 | $ 51,000,000 | $ 90,000,000 | $ 95,000,000 | |
Cost incurred to fulfill a contract, current | 27,000,000 | 27,000,000 | $ 28,000,000 | ||
Increase (decrease) in cost of obtaining a contract, non-current | 1,000,000 | ||||
Cost of obtaining a contract, non-current | 54,000,000 | 54,000,000 | 53,000,000 | ||
Increase (decrease) in cost of obtaining a contract, current | (1,000,000) | ||||
Capitalized Contract Cost To Obtain, Net, Current | 88,000,000 | 88,000,000 | 89,000,000 | ||
Capitalized Contract Cost To Obtain, Net | 142,000,000 | 142,000,000 | $ 142,000,000 | ||
Selling, General and Administrative Expenses [Member] | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Amortization | 36,000,000 | 48,000,000 | 80,000,000 | 91,000,000 | |
Revenue | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Amortization | 6,000,000 | 3,000,000 | 10,000,000 | 4,000,000 | |
Cost of Sales [Member] | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Amortization | $ 7,000,000 | $ 10,000,000 | $ 15,000,000 | $ 14,000,000 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Goodwill [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 333,000,000 | $ 333,000,000 |
Goodwill [Roll Forward] | ||
Intangible assets, net | 2,078,000,000 | 2,235,000,000 |
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) | 333,000,000 | 333,000,000 |
Trademarks and Trade Names [Member] | ||
Goodwill [Roll Forward] | ||
Intangible assets, net | 352,000,000 | 354,000,000 |
Customer relationships and other intangibles | ||
Goodwill [Roll Forward] | ||
Intangible assets, net | 1,487,000,000 | 1,566,000,000 |
Acquired Technology and Patents [Member] | ||
Goodwill [Roll Forward] | ||
Intangible assets, net | $ 239,000,000 | $ 315,000,000 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 1,476,000,000 | $ 1,480,000,000 |
Supplementary Financial Infor_3
Supplementary Financial Information - Consolidated Statements of Operations Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
OTHER INCOME (EXPENSE), NET | ||||
Interest income | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Foreign currency gains (losses), net | 2,000,000 | 1,000,000 | 2,000,000 | (1,000,000) |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 6,000,000 | 7,000,000 | 12,000,000 | 14,000,000 |
Change in fair value of emergence date warrants | 7,000,000 | (22,000,000) | 8,000,000 | (27,000,000) |
Sublease Income | 0 | 1,000,000 | 0 | 1,000,000 |
Other, net | 1,000,000 | (1,000,000) | 1,000,000 | (1,000,000) |
Total other income (expense), net | 17,000,000 | 1,000,000 | 24,000,000 | 1,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 14,000,000 | 0 | 14,000,000 |
Other income (expense), net | 17,000,000 | 1,000,000 | 24,000,000 | 1,000,000 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (6,000,000) | (7,000,000) | (12,000,000) | (14,000,000) |
Change in fair value of emergence date warrants | (7,000,000) | 22,000,000 | (8,000,000) | 27,000,000 |
U.S. | Post-retirement Benefits | ||||
OTHER INCOME (EXPENSE), NET | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 14,000,000 | $ 0 | $ 14,000,000 |
Supplementary Financial Infor_4
Supplementary Financial Information - Supplementary Cash Flow Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Significant Noncash Transactions [Line Items] | ||||||
Operating Lease, Payments | $ 16,000,000 | $ 31,000,000 | $ 33,000,000 | |||
Restricted Cash, Noncurrent | 4,000,000 | $ 4,000,000 | 4,000,000 | 4,000,000 | $ 4,000,000 | $ 4,000,000 |
Cash | 324,000,000 | 593,000,000 | 324,000,000 | 593,000,000 | 498,000,000 | 727,000,000 |
OTHER PAYMENTS | ||||||
Interest payments | 60,000,000 | 59,000,000 | 93,000,000 | 92,000,000 | ||
Income tax payments | 6,000,000 | 6,000,000 | 13,000,000 | 9,000,000 | ||
NON-CASH INVESTING ACTIVITIES | ||||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 4,000,000 | 5,000,000 | 11,000,000 | 16,000,000 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 328,000,000 | 597,000,000 | 328,000,000 | 597,000,000 | $ 502,000,000 | $ 731,000,000 |
Acquisition of Equipment Under Finance Leases | 4,000,000 | 4,000,000 | 4,000,000 | 6,000,000 | ||
Increase (decrease) in Accounts payable for Capital expenditures | $ 1,000,000 | $ (1,000,000) | $ (1,000,000) | $ (2,000,000) |
Business Restructuring Reserv_3
Business Restructuring Reserves and Programs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 3,000,000 | $ 8,000,000 | $ 10,000,000 | $ 12,000,000 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 44,000,000 | |||
Cash payments | (12,000,000) | |||
Impact of foreign currency fluctuations | (1,000,000) | |||
Restructuring Reserve, ending balance | 35,000,000 | 35,000,000 | ||
Fiscal 2020 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 14,000,000 | |||
Cash payments | (2,000,000) | |||
Impact of foreign currency fluctuations | (1,000,000) | |||
Restructuring Reserve, ending balance | 11,000,000 | 11,000,000 | ||
Fiscal 2019 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 4,000,000 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 0 | |||
Cash payments | (3,000,000) | |||
Impact of foreign currency fluctuations | 1,000,000 | |||
Restructuring Reserve, ending balance | 2,000,000 | 2,000,000 | ||
Fiscal 2008-2018 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 30,000,000 | |||
Cash payments | (7,000,000) | |||
Impact of foreign currency fluctuations | (1,000,000) | |||
Restructuring Reserve, ending balance | 22,000,000 | 22,000,000 | ||
Employee Separation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2,000,000 | 1,000,000 | 4,000,000 | 2,000,000 |
Facility Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 1,000,000 | $ 7,000,000 | 6,000,000 | $ 10,000,000 |
Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 4,000,000 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Feb. 23, 2021 | |
Debt Instrument [Line Items] | ||||||
Document Period End Date | Mar. 31, 2022 | |||||
Principal | $ 2,893,000,000 | $ 2,893,000,000 | $ 2,893,000,000 | |||
Long-term debt, net of current portion | 2,827,000,000 | 2,827,000,000 | 2,813,000,000 | |||
Interest Expense | 54,000,000 | $ 59,000,000 | 108,000,000 | $ 115,000,000 | ||
Amortization of Debt Issuance Costs and Discounts | 14,000,000 | 13,000,000 | ||||
Convertible Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 350,000,000 | 350,000,000 | 350,000,000 | |||
Long-term debt, net of current portion | 322,000,000 | 322,000,000 | 311,000,000 | |||
Interest Expense | 8,000,000 | 7,000,000 | 15,000,000 | 14,000,000 | ||
Amortization of Debt Issuance Costs and Discounts | 6,000,000 | $ 5,000,000 | 11,000,000 | $ 10,000,000 | ||
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 | 987,000,000 | 987,000,000 | 986,000,000 | |||
Interest Expense | 16,000,000 | 32,000,000 | ||||
Term Loan Credit Agreement 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 843,000,000 | |||||
Term Loan Credit Agreement 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 800,000,000 | 800,000,000 | 800,000,000 | $ 800,000,000 | ||
Long-term debt, net of current portion | 781,000,000 | 781,000,000 | 780,000,000 | |||
Term Loan Credit Agreement, Tranche B-2, 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 743,000,000 | 743,000,000 | 743,000,000 | |||
Long-term debt, net of current portion | $ 737,000,000 | $ 737,000,000 | $ 736,000,000 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | Feb. 24, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Feb. 23, 2021 | Sep. 25, 2020 | Jun. 11, 2018 | Dec. 15, 2017 |
Debt Instrument [Line Items] | ||||||||||
Document Period End Date | Mar. 31, 2022 | |||||||||
Debt face amount | $ 2,893,000,000 | $ 2,893,000,000 | $ 2,893,000,000 | |||||||
Letters of credit, maximum amount | 150,000,000 | 150,000,000 | ||||||||
Letters of credit outstanding | $ 32,000,000 | $ 32,000,000 | ||||||||
Weighted average contractual interest rate of debt | 6.50% | 6.50% | 6.50% | |||||||
Interest Expense | $ 54,000,000 | $ 59,000,000 | $ 108,000,000 | $ 115,000,000 | ||||||
Repayments of Debt | $ 100,000,000 | 0 | 100,000,000 | |||||||
Write off of Deferred Debt Issuance Cost | 1,000,000 | 1,000,000 | ||||||||
Amortization of Debt Issuance Costs and Discounts | 14,000,000 | 13,000,000 | ||||||||
Interest Expense [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 3,000,000 | 3,000,000 | ||||||||
Revolving Credit Facility | ABL Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, current borrowing capacity | $ 200,000,000 | |||||||||
Line of Credit | Letter of Credit | ABL Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letter of credit, remaining borrowing capacity | 118,000,000 | 118,000,000 | ||||||||
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 | $ 8,000,000 | 7,000,000 | $ 15,000,000 | 14,000,000 | ||||||
Amortization of Debt Issuance Costs and Discounts | 6,000,000 | 5,000,000 | 11,000,000 | 10,000,000 | ||||||
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 | 32,000,000 | ||||||||
Term Loan Credit Agreement, Tranche B-2, 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt face amount | 743,000,000 | 743,000,000 | 743,000,000 | |||||||
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 | 17,000,000 | $ 22,000,000 | 35,000,000 | $ 42,000,000 | ||||||
Term Loan Credit Agreement 2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt face amount | $ 843,000,000 | |||||||||
Term Loan Credit Agreement 2027 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt face amount | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | ||||||
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 ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 2,893,000,000 | $ 2,893,000,000 |
Less: | ||
Weighted average contractual interest rate of debt | 6.50% | 6.50% |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 350,000,000 | $ 350,000,000 |
Less: | ||
Unamortized debt discount | (26,000,000) | (36,000,000) |
Unamortized issuance costs | (2,000,000) | (3,000,000) |
Net carrying amount | $ 322,000,000 | $ 311,000,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) | Mar. 23, 2022USD ($)counterparty | Jul. 01, 2020counterparty | May 16, 2018counterparty | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 23, 2020USD ($) | Nov. 14, 2018USD ($) | Dec. 15, 2017$ / sharesshares |
Derivative [Line Items] | |||||||||||||
Number of counterparties | counterparty | 6 | ||||||||||||
Expected gain (loss) to be reclassified within twelve months | $ 13,000,000 | ||||||||||||
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) | $ (59,000,000) | (108,000,000) | $ (115,000,000) | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 39,000,000 | $ 40,000,000 | 85,000,000 | $ 17,000,000 | 79,000,000 | 102,000,000 | |||||||
Other comprehensive income (loss) before reclassifications | 43,000,000 | 88,000,000 | 71,000,000 | 93,000,000 | |||||||||
Amounts reclassified to earnings | (2,000,000) | 22,000,000 | 10,000,000 | ||||||||||
Interest Expense [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Amounts reclassified to earnings | 10,000,000 | ||||||||||||
Derivatives Designated as Hedging Instruments: | Unrealized Loss on Term Loan Interest Rate Swap | |||||||||||||
Derivative [Line Items] | |||||||||||||
Other comprehensive income (loss) before reclassifications | 42,000,000 | 17,000,000 | 57,000,000 | 16,000,000 | |||||||||
Amounts reclassified to earnings | 12,000,000 | 13,000,000 | 25,000,000 | 25,000,000 | |||||||||
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 | (12,000,000) | $ (13,000,000) | (25,000,000) | $ (25,000,000) | |||||||||
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 | ||||||||||
Deferred Loss, Frozen, To Be Reclassified to Interest Expense | $ 15,000,000 | ||||||||||||
Proceeds from Operating Activities | 52,000,000 | ||||||||||||
Foreign Exchange Contract [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative notional amount | 156,000,000 | 156,000,000 | $ 191,000,000 | ||||||||||
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 | |||||||||||
Deferred Loss, Frozen, To Be Reclassified to Interest Expense | $ 52,000,000 | ||||||||||||
Offsetting Interest Rate Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative fixed interest rate | 0.1745% | ||||||||||||
Derivative notional amount | $ 257,000,000 | ||||||||||||
New Forward Interest Rate Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of counterparties | counterparty | 4,000,000 | ||||||||||||
Derivative notional amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||
Derivative, Average Fixed Interest Rate | 2.548% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Assumptions Used (Details) | Mar. 31, 2022yearunit$ / shares | Sep. 30, 2021unityear$ / shares |
Expected volatility | ||
Derivative [Line Items] | ||
Warrants, measurement input | 0.6241 | 0.4963 |
Risk-free interest rates | ||
Derivative [Line Items] | ||
Warrants, measurement input | 0.0129 | 0.0013 |
Contractual remaining life (in years) | ||
Derivative [Line Items] | ||
Warrants, measurement input | year | 0.71 | 1.21 |
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 | $ 12.67 | $ 19.79 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Fair Value (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Derivative [Line Items] | ||
Derivative Asset | $ 0 | $ 6,000,000 |
Derivative Liability | 28,000,000 | 73,000,000 |
Derivatives Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 6,000,000 |
Derivative Liability | 21,000,000 | 53,000,000 |
Derivatives Designated as Hedging Instruments: | Other assets | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 17,000,000 | 43,000,000 |
Derivatives Designated as Hedging Instruments: | Other liabilities | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 4,000,000 | 10,000,000 |
Derivatives Designated as Hedging Instruments: | Other assets | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 6,000,000 |
Derivative Liability | 0 | 0 |
Derivatives Not Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 7,000,000 | 20,000,000 |
Derivatives Not Designated as Hedging Instruments: | Other assets | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 5,000,000 | 7,000,000 |
Derivatives Not Designated as Hedging Instruments: | Other assets | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 1,000,000 | 2,000,000 |
Derivatives Not Designated as Hedging Instruments: | Other assets | Warrants | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 1,000,000 | 0 |
Derivatives Not Designated as Hedging Instruments: | Other liabilities | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 2,000,000 |
Derivatives Not Designated as Hedging Instruments: | Other liabilities | Warrants | ||
Derivative [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | $ 0 | $ 9,000,000 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivatives Designated as Cash Flow Hedges (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||||||
Interest expense | $ (54,000,000) | $ (59,000,000) | $ (108,000,000) | $ (115,000,000) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 39,000,000 | $ 40,000,000 | 85,000,000 | $ 17,000,000 | 79,000,000 | 102,000,000 |
Other comprehensive income (loss) before reclassifications | 43,000,000 | 88,000,000 | 71,000,000 | 93,000,000 | ||
Amounts reclassified to earnings | (2,000,000) | 22,000,000 | 10,000,000 | |||
Derivatives Designated as Hedging Instruments: | Unrealized Loss on Term Loan Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications | 42,000,000 | 17,000,000 | 57,000,000 | 16,000,000 | ||
Amounts reclassified to earnings | 12,000,000 | 13,000,000 | 25,000,000 | 25,000,000 | ||
Interest Expense [Member] | ||||||
Derivative [Line Items] | ||||||
Amounts reclassified to earnings | 10,000,000 | |||||
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 | $ (12,000,000) | $ (13,000,000) | $ (25,000,000) | $ (25,000,000) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 28,000,000 | $ 28,000,000 | $ 73,000,000 | ||
Derivatives Not Designated as Hedging Instruments: | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 7,000,000 | 7,000,000 | $ 20,000,000 | ||
Other income, net | Derivatives Not Designated as Hedging Instruments: | Emergence Date Warrants | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) | 7,000,000 | $ (22,000,000) | 8,000,000 | $ (27,000,000) | |
Other income, net | Derivatives Not Designated as Hedging Instruments: | Foreign Exchange Forward [Member] | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) | $ (1,000,000) | $ 1,000,000 | $ (1,000,000) | $ 6,000,000 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Presented on a Net Basis (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Derivative [Line Items] | ||
Gross amounts recognized in the consolidated balance sheet, Asset | $ 0 | $ 6,000,000 |
Derivative Liability | 28,000,000 | 73,000,000 |
Gross amount subject to offset in master netting arrangements not offset in the Consolidated Balance Sheet, Asset | 0 | (6,000,000) |
Gross amount subject to offset in master netting arrangements not offset in the Consolidated Balance Sheet, Liability | 0 | (6,000,000) |
Derivative Asset | 0 | 0 |
Derivative Liability | $ 28,000,000 | $ 67,000,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | $ 3,166,000,000 | $ 3,167,000,000 |
Accumulated amortization | (1,421,000,000) | (1,265,000,000) |
Finite-lived intangible assets, net | 1,745,000,000 | 1,902,000,000 |
Intangible assets, net | 2,078,000,000 | 2,235,000,000 |
Acquired technology and patents | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 971,000,000 | 971,000,000 |
Accumulated amortization | (732,000,000) | (656,000,000) |
Finite-lived intangible assets, net | 239,000,000 | 315,000,000 |
Customer relationships and other intangibles | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 2,153,000,000 | 2,154,000,000 |
Accumulated amortization | (666,000,000) | (588,000,000) |
Finite-lived intangible assets, net | 1,487,000,000 | 1,566,000,000 |
Trademarks and trade names | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Cost | 42,000,000 | 42,000,000 |
Accumulated amortization | (23,000,000) | (21,000,000) |
Finite-lived intangible assets, net | 19,000,000 | 21,000,000 |
Trademarks and trade names | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 352,000,000 | 354,000,000 |
Customer relationships and other intangibles | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 1,487,000,000 | 1,566,000,000 |
Acquired technology and patents | ||
Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 239,000,000 | $ 315,000,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | $ 0 | 0 | $ 0 | |
Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | $ 6,000,000 | ||
Liabilities | 28,000,000 | 28,000,000 | 73,000,000 | ||
Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | 0 | ||
Liabilities | 0 | 0 | 0 | ||
Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | 6,000,000 | ||
Liabilities | 27,000,000 | 27,000,000 | 64,000,000 | ||
Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | 0 | ||
Liabilities | 1,000,000 | 1,000,000 | 9,000,000 | ||
Interest rate contracts | Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | 6,000,000 | ||
Liabilities | 26,000,000 | 26,000,000 | 62,000,000 | ||
Interest rate contracts | Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | 0 | ||
Liabilities | 0 | 0 | 0 | ||
Interest rate contracts | Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | 6,000,000 | ||
Liabilities | 26,000,000 | 26,000,000 | 62,000,000 | ||
Interest rate contracts | Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets | 0 | 0 | 0 | ||
Liabilities | 0 | 0 | 0 | ||
Foreign currency forward contracts | Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | 1,000,000 | 1,000,000 | 2,000,000 | ||
Foreign currency forward contracts | Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | 0 | 0 | 0 | ||
Foreign currency forward contracts | Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | 1,000,000 | 1,000,000 | 2,000,000 | ||
Foreign currency forward contracts | Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | 0 | 0 | 0 | ||
Warrants | Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | 1,000,000 | 1,000,000 | 9,000,000 | ||
Warrants | Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | 0 | 0 | 0 | ||
Warrants | Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | 0 | 0 | 0 | ||
Warrants | Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities | $ 1,000,000 | $ 1,000,000 | $ 9,000,000 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | $ 28,000,000 | $ 73,000,000 |
Warrant [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | 1,000,000 | 9,000,000 |
Foreign currency forward contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | 1,000,000 | 2,000,000 |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | 1,000,000 | 9,000,000 |
Level 3 | Warrant [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | 1,000,000 | 9,000,000 |
Level 3 | Foreign currency forward contracts | ||
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 | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Remaining Performance Obligation, Amount | $ 2,300,000,000 | $ 2,300,000,000 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 72.00% | 335.00% | 29.00% | 696.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 10,000,000 | $ 47,000,000 | $ 18,000,000 | $ 56,000,000 |
Benefit Obligations - Narrative
Benefit Obligations - Narrative (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
U.S. | Post-retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, Pension Risk Tranfer | $ 209,000,000 | |
Defined Benefit Plan, Life Insurance Plan Assets | $ 190,000,000 | |
U.S. | Postretirement Health Coverage | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Reimbursement of prior period payments | $ 2,000,000 | |
Estimated future employer contributions in current fiscal year | 6,000,000 | |
Non-US | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 14,000,000 | |
Estimated future employer contributions in current fiscal year | $ 11,000,000 |
Benefit Obligations - Component
Benefit Obligations - Components of the Pension and Post-Retirement Net Periodic Benefit Cost (Credit) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Components of net periodic benefit credit | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ (14,000,000) | $ 0 | $ (14,000,000) |
U.S. | Pension Plan | ||||
Components of net periodic benefit credit | ||||
Service cost | 1,000,000 | 1,000,000 | 2,000,000 | 2,000,000 |
Interest cost | 5,000,000 | 5,000,000 | 10,000,000 | 10,000,000 |
Expected return on plan assets | (13,000,000) | (13,000,000) | (25,000,000) | (26,000,000) |
Net periodic benefit cost (credit) | (7,000,000) | (6,000,000) | (13,000,000) | (13,000,000) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 1,000,000 | 0 | 1,000,000 |
U.S. | Post-retirement Benefits | ||||
Components of net periodic benefit credit | ||||
Service cost | 0 | 1,000,000 | 0 | 1,000,000 |
Interest cost | 1,000,000 | 2,000,000 | 2,000,000 | 4,000,000 |
Expected return on plan assets | 0 | (2,000,000) | 0 | (4,000,000) |
Net periodic benefit cost (credit) | 0 | (14,000,000) | 0 | (14,000,000) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (2,000,000) | (1,000,000) | (3,000,000) | (2,000,000) |
Defined Benefit Plan, Amortization of Gain (Loss) | 1,000,000 | 0 | 1,000,000 | 1,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (14,000,000) | 0 | (14,000,000) |
Non-US | Pension Plan | ||||
Components of net periodic benefit credit | ||||
Service cost | 1,000,000 | 2,000,000 | 3,000,000 | 4,000,000 |
Interest cost | 2,000,000 | 1,000,000 | 3,000,000 | 2,000,000 |
Net periodic benefit cost (credit) | $ 3,000,000 | $ 3,000,000 | $ 6,000,000 | $ 6,000,000 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 02, 2022 | Mar. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 14,000,000 | $ 13,000,000 | $ 28,000,000 | $ 27,000,000 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 531,339 | |||||
2019 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 6,500,000 | 6,500,000 | ||||
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 | 669,228 | |||||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 21.89 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 274,223 | |||||
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 | 2,845,320 | |||||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 19.05 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 1,084,705 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 16.58 | |||||
Restricted Stock Units (RSUs) [Member] | 2019 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reduction of Common Shares by Award Granted | 1.5 | 1.7 | ||||
Share-based Payment Arrangement, Option [Member] | 2019 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reduction of Common Shares by Award Granted | 1 | 1 | ||||
Stock Appreciation Rights (SARs) | 2019 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Reduction of Common Shares by Award Granted | 1 | 1 |
Share-based Compensation - Opti
Share-based Compensation - Options, Narrative (Details) | 6 Months Ended |
Mar. 31, 2022$ / 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 | 81,832 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 11.38 |
Share-based Compensation - 2019
Share-based Compensation - 2019 Equity Incentive Plan (Details) | Mar. 31, 2022shares |
2019 Equity Incentive Plan | |
Share-based Payment Arrangement [Abstract] | |
Common Stock, Capital Shares Reserved for Future Issuance | 6,500,000 |
Share-based Compensation - PRSU
Share-based Compensation - PRSU (Details) - Performance Shares [Member] | 6 Months Ended |
Mar. 31, 2022USD ($)$ / 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 | Rate | 67.59% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | Rate | 0.76% |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 21.89 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 669,228 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | Rate | 0.00% |
Vested (in shares) | shares | 274,223 |
Instruments vested in period, fair value | $ | $ 11.18 |
Share-based Compensation by Share-based Payment Award, Fair Value Assumptions | The grant date fair value of the 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: Six months ended March 31, 2022 Expected volatility (1) 67.59 % Risk-free interest rate (2) 0.76 % 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 on its common stock. |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 669,228 |
Share-based Compensation - ESPP
Share-based Compensation - ESPP (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 14,000,000 | $ 13,000,000 | $ 28,000,000 | $ 27,000,000 |
Employee Stock [Member] | ||||
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 | 69.22% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.19% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Employee Stock [Member] | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 7,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.74 | |||
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 | $ 19.05 |
Share-based Compensation - Op_2
Share-based Compensation - Options (Details) | 6 Months Ended |
Mar. 31, 2022USD ($)$ / 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 | 81,832 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 11.38 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 1,000,000 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Bonus Program (Details) | Mar. 31, 2022shares |
Stock Bonus Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000,000 |
Preferred Stock - Narrative (De
Preferred Stock - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Sep. 30, 2021 | Nov. 14, 2018 | |
Class of Stock [Line Items] | ||||||
Preferred Stock, Shares Authorized | 55,000,000 | 55,000,000 | 55,000,000 | |||
Strategic Partnership Interest on As-Converted Basis | 9.00% | 9.00% | ||||
Document Period End Date | Mar. 31, 2022 | |||||
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 | 85,677,909 | 85,677,909 | 84,115,602 | |||
Common stock, shares outstanding | 85,677,909 | 85,677,909 | 84,115,602 | |||
Warrant repurchase program, authorized amount | $ 15,000,000 | |||||
Temporary Equity, Accretion of Dividends | $ 1,000,000 | |||||
Dividends Payable | $ 6,000,000 | $ 6,000,000 | ||||
Preferred Stock, Shares Outstanding | 125,000 | 125,000 | 125,000 | |||
Preferred stock | $ 131,000,000 | $ 131,000,000 | $ 130,000,000 | |||
Dividends, Preferred Stock, Paid-in-kind | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||
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 | $ 0.01 | |||
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 ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||||||
Net income (loss) | $ (1,000,000) | $ (66,000,000) | $ (58,000,000) | $ (4,000,000) | $ (67,000,000) | $ (62,000,000) |
Preferred Stock Dividends and Other Adjustments | 1,000,000 | 1,000,000 | 2,000,000 | 2,000,000 | ||
Undistributed Earnings (Loss) Available to Common Shareholders, Diluted | (2,000,000) | (59,000,000) | (69,000,000) | (64,000,000) | ||
Undistributed Earnings, Basic | $ (2,000,000) | $ (59,000,000) | $ (69,000,000) | $ (64,000,000) | ||
Percentage allocated to common stockholders | 100.00% | 100.00% | 100.00% | 100.00% | ||
Net income (loss) attributable to common stockholders | $ (2,000,000) | $ (59,000,000) | $ (69,000,000) | $ (64,000,000) | ||
Numerator for basic and diluted loss per common share | $ (2,000,000) | $ (59,000,000) | $ (69,000,000) | $ (64,000,000) | ||
Weighted average shares outstanding | ||||||
Denominator for basic earnings per weighted average common shares (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Loss per common share | ||||||
Basic (in usd per share) | $ (0.02) | $ (0.70) | $ (0.81) | $ (0.76) | ||
Diluted (in usd per share) | $ (0.02) | $ (0.70) | $ (0.81) | $ (0.76) | ||
Weighted average number of shares - basic (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Weighted average number of shares - diluted (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Share-based Payment Arrangement, Option [Member] | ||||||
Loss per common share | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 300,000 | 500,000 | 300,000 | 500,000 | ||
Common Stock | ||||||
Weighted average shares outstanding | ||||||
Denominator for basic earnings per weighted average common shares (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Loss per common share | ||||||
Weighted average number of shares - basic (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Common Stock and Common Stock Equivalents | ||||||
Weighted average shares outstanding | ||||||
Denominator for basic earnings per weighted average common shares (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 | ||
Loss per common share | ||||||
Weighted average number of shares - basic (in shares) | 85,600,000 | 84,600,000 | 85,100,000 | 84,200,000 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 11, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Document Period End Date | Mar. 31, 2022 | ||||
Stock options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 300,000 | 500,000 | 300,000 | 500,000 | |
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) | 1,800,000 | 1,600,000 | 1,800,000 | 1,600,000 | |
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) | 4,100,000 | 3,100,000 | 4,100,000 | 3,100,000 | |
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 | 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) | 200,000 | 100,000 | 200,000 | 100,000 | |
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 | |
Common Stock | Stock Bonus Program | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 300,000 | 300,000 | |||
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 ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Segment Reporting Information | |||||
REVENUE | $ 716,000,000 | $ 738,000,000 | $ 1,429,000,000 | $ 1,481,000,000 | |
GROSS PROFIT | 371,000,000 | 412,000,000 | 740,000,000 | 828,000,000 | |
OPERATING EXPENSES | |||||
Selling, general and administrative | 245,000,000 | 264,000,000 | 507,000,000 | 519,000,000 | |
Research and development | 60,000,000 | 57,000,000 | 121,000,000 | 112,000,000 | |
Restructuring charges, net | 3,000,000 | 8,000,000 | 10,000,000 | 12,000,000 | |
TOTAL OPERATING EXPENSES | 348,000,000 | 368,000,000 | 718,000,000 | 722,000,000 | |
OPERATING INCOME | 23,000,000 | 44,000,000 | 22,000,000 | 106,000,000 | |
INTEREST EXPENSE AND OTHER INCOME, NET | (37,000,000) | (58,000,000) | (84,000,000) | (114,000,000) | |
Total Assets | 5,824,000,000 | 5,824,000,000 | $ 5,985,000,000 | ||
LOSS BEFORE INCOME TAXES | (14,000,000) | (14,000,000) | (62,000,000) | (8,000,000) | |
Amortization of intangible assets | 40,000,000 | 39,000,000 | 80,000,000 | 79,000,000 | |
Operating Segments | Products & Solutions | |||||
Segment Reporting Information | |||||
REVENUE | 223,000,000 | 226,000,000 | 454,000,000 | 492,000,000 | |
GROSS PROFIT | 104,000,000 | 134,000,000 | 224,000,000 | 295,000,000 | |
Operating Segments | Services | |||||
Segment Reporting Information | |||||
REVENUE | 493,000,000 | 513,000,000 | 975,000,000 | 990,000,000 | |
GROSS PROFIT | 302,000,000 | 322,000,000 | 593,000,000 | 620,000,000 | |
Unallocated | |||||
Segment Reporting Information | |||||
REVENUE | 0 | (1,000,000) | 0 | (1,000,000) | |
GROSS PROFIT | $ (35,000,000) | $ (44,000,000) | $ (77,000,000) | $ (87,000,000) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Components (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | $ 380,000,000 | $ 260,000,000 | $ 392,000,000 | $ 236,000,000 | ||||
Other comprehensive income (loss) before reclassifications | 43,000,000 | 88,000,000 | 71,000,000 | 93,000,000 | ||||
Amounts reclassified to earnings | (2,000,000) | 22,000,000 | 10,000,000 | |||||
(Provision for) benefit from income taxes | 14,000,000 | 1,000,000 | 14,000,000 | 1,000,000 | ||||
Ending Balance | 432,000,000 | 296,000,000 | 432,000,000 | 296,000,000 | ||||
Cumulative translation adjustment | 1,000,000 | 21,000,000 | 14,000,000 | 15,000,000 | ||||
Accumulated other comprehensive loss | (12,000,000) | (12,000,000) | $ (91,000,000) | |||||
Interest Expense [Member] | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Amounts reclassified to earnings | 10,000,000 | |||||||
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 | 50,000,000 | 0 | 62,000,000 | ||||
Amounts reclassified to earnings | (2,000,000) | (15,000,000) | (3,000,000) | (15,000,000) | ||||
(Provision for) benefit from income taxes | 0 | 1,000,000 | 0 | 1,000,000 | ||||
Accumulated other comprehensive loss | (23,000,000) | (62,000,000) | (23,000,000) | (62,000,000) | $ (21,000,000) | (20,000,000) | $ (96,000,000) | $ (108,000,000) |
Foreign Currency Translation | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other comprehensive income (loss) before reclassifications | 1,000,000 | 21,000,000 | 14,000,000 | 15,000,000 | ||||
Amounts reclassified to earnings | 0 | 0 | 0 | 0 | ||||
(Provision for) benefit from income taxes | 0 | 0 | 0 | 0 | ||||
Accumulated other comprehensive loss | (23,000,000) | (31,000,000) | (23,000,000) | (31,000,000) | (24,000,000) | (37,000,000) | (52,000,000) | (46,000,000) |
Unrealized Loss on Term Loan Interest Rate Swap | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
(Provision for) benefit from income taxes | 14,000,000 | 0 | 14,000,000 | 0 | ||||
Accumulated other comprehensive loss | 34,000,000 | (50,000,000) | 34,000,000 | (50,000,000) | (6,000,000) | (34,000,000) | (80,000,000) | (91,000,000) |
Unrealized Loss on Term Loan Interest Rate Swap | Derivatives Designated as Hedging Instruments: | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other comprehensive income (loss) before reclassifications | 42,000,000 | 17,000,000 | 57,000,000 | 16,000,000 | ||||
Amounts reclassified to earnings | 12,000,000 | 13,000,000 | 25,000,000 | 25,000,000 | ||||
Accumulated Other Comprehensive (Loss) Income | ||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (51,000,000) | (228,000,000) | (91,000,000) | (245,000,000) | ||||
Ending Balance | (12,000,000) | (143,000,000) | (12,000,000) | (143,000,000) | ||||
Accumulated other comprehensive loss | $ (12,000,000) | $ (143,000,000) | $ (12,000,000) | $ (143,000,000) | $ (51,000,000) | $ (91,000,000) | $ (228,000,000) | $ (245,000,000) |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2022USD ($) | Mar. 31, 2022USD ($)director | |
Related Party Transaction [Line Items] | ||
Number of directors | 8 | |
Related Party Transactions | Related Party Transactions The 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 Stephan Scholl, a Director of the Company, is the Chief Executive Officer of Alight Solutions LLC ("Alight"), a provider of integrated benefits, payroll and cloud solutions, and he also serves on Alight's board of directors. During both the three months | |
Alight Solutions LLC [Member] | Director [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of goods and services sold | $ | $ 1,000,000 | $ 2,000,000 |
Non-Employee Director | ||
Related Party Transaction [Line Items] | ||
Number of directors | 7 |
Commitments and Contingencies -
Commitments and Contingencies - General (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Loss Contingencies [Line Items] | ||
Amount reserved for product warranties | $ 2,000,000 | $ 2,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Product Warranties (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Product warranties, maximum term | 2 years | |
Amount reserved for product warranties | $ 2,000,000 | $ 2,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Letters of Credit and Guarantees (Details) | Mar. 31, 2022USD ($) |
Line of Credit Facility [Line Items] | |
Letters of credit, maximum amount | $ 150,000,000 |
Restricted cash | 4,000,000 |
Standby Letters of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit, maximum amount | $ 67,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Transactions with Nokia (Details) | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Indemnification Agreement | |
Loss Contingencies [Line Items] | |
Threshold amount of contribution and distribution agreement | $ 50,000,000 |
Commitments and Contingencies_5
Commitments and Contingencies - Purchase Commitments (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Purchase Commitments [Line Items] | |
Purchase Obligation, to be Paid, Year One | $ 5 |
Purchase Obligation, to be Paid, Year Two | 21 |
Purchase Obligation, to be Paid, Year Three | 15 |
Purchase Obligation, to be Paid, Year Four | 16 |
Purchase Obligation | $ 200 |
Minimum [Member] | |
Purchase Commitments [Line Items] | |
Purchase Commitment, Period | 3 years |
Maximum | |
Purchase Commitments [Line Items] | |
Purchase Commitment, Period | 6 years |
Uncategorized Items - avya-2022
Label | Element | Value |
Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | $ 2,861,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 2,968,000,000 |
Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 986,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 1,053,000,000 |
Term Loan Credit Agreement, Tranche B-2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 737,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 745,000,000 |
Convertible Debt [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 343,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 368,000,000 |
Term Loan Credit Agreement, Tranche B-1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | 795,000,000 |
Debt Instrument, Fair Value Disclosure | us-gaap_DebtInstrumentFairValue | $ 802,000,000 |