Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CommScope Holding Company, Inc. | |
Entity Central Index Key | 0001517228 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 204,498,997 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | COMM | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-36146 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-4332098 | |
Entity Address, Address Line One | 1100 CommScope Place, SE | |
Entity Address, City or Town | Hickory | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28602 | |
City Area Code | 828 | |
Local Phone Number | 324-2200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,105.3 | $ 2,168.1 | $ 6,362.6 | $ 6,304.1 |
Cost of sales | 1,452.3 | 1,432.6 | 4,364.1 | 4,271.3 |
Gross profit | 653 | 735.5 | 1,998.5 | 2,032.8 |
Operating expenses: | ||||
Selling, general and administrative | 314.3 | 296.7 | 909.3 | 898.7 |
Research and development | 167.8 | 184.6 | 515.6 | 541.1 |
Amortization of purchased intangible assets | 153 | 158.1 | 461.9 | 473.5 |
Restructuring costs (credits), net | (3.1) | 40.3 | 100.2 | 83.6 |
Asset impairments | 0 | 0 | 0 | 206.7 |
Total operating expenses | 632 | 679.7 | 1,987 | 2,203.6 |
Operating income (loss) | 21 | 55.8 | 11.5 | (170.8) |
Other expense, net | (32.3) | (16.9) | (29.8) | (30.2) |
Interest expense | (148.6) | (147.2) | (424.1) | (437.7) |
Interest income | 0.5 | 1.3 | 1.5 | 4.2 |
Loss before income taxes | (159.4) | (107) | (440.9) | (634.5) |
Income tax (expense) benefit | 35.2 | (9.3) | 65.3 | 37.2 |
Net loss | (124.2) | (116.3) | (375.6) | (597.3) |
Series A convertible preferred stock dividend | (14.3) | (14.1) | (43) | (41.8) |
Net loss attributable to common stockholders | $ (138.5) | $ (130.4) | $ (418.6) | $ (639.1) |
Loss per share: | ||||
Basic | $ (0.68) | $ (0.66) | $ (2.06) | $ (3.26) |
Diluted | $ (0.68) | $ (0.66) | $ (2.06) | $ (3.26) |
Weighted average shares outstanding: | ||||
Basic | 204.2 | 196.9 | 203.3 | 195.9 |
Diluted | 204.2 | 196.9 | 203.3 | 195.9 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Comprehensive loss: | ||||
Net loss | $ (124.2) | $ (116.3) | $ (375.6) | $ (597.3) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | (40.9) | 63.7 | (70.7) | (1.3) |
Pension and other postretirement benefit activity | 0.3 | (0.1) | 0.9 | (0.6) |
Gain (loss) on hedging instruments | 4.3 | (9) | 8.2 | (21.9) |
Total other comprehensive income (loss), net of tax | (36.3) | 54.6 | (61.6) | (23.8) |
Total comprehensive loss | $ (160.5) | $ (61.7) | $ (437.2) | $ (621.1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 411.5 | $ 521.9 |
Accounts receivable, less allowance for doubtful accounts of $45.6 and $40.3, respectively | 1,506.2 | 1,487.4 |
Inventories, net | 1,252.2 | 1,088.9 |
Prepaid expenses and other current assets | 268.6 | 256.3 |
Total current assets | 3,438.5 | 3,354.5 |
Property, plant and equipment, net of accumulated depreciation of $775.1 and $705.7, respectively | 664.6 | 684.5 |
Goodwill | 5,253.7 | 5,286.5 |
Other intangible assets, net | 3,179.9 | 3,650.4 |
Other noncurrent assets | 715.3 | 600.9 |
Total assets | 13,252 | 13,576.8 |
Liabilities and Stockholders' Equity (Deficit) | ||
Accounts payable | 1,170.1 | 1,010.8 |
Accrued and other liabilities | 884.6 | 910.6 |
Current portion of long-term debt | 32 | 32 |
Total current liabilities | 2,086.7 | 1,953.4 |
Long-term debt | 9,481 | 9,488.6 |
Deferred income taxes | 199.1 | 206.2 |
Other noncurrent liabilities | 526.8 | 531.8 |
Total liabilities | 12,293.6 | 12,180 |
Commitments and contingencies | ||
Series A convertible preferred stock, $0.01 par value | 1,041.8 | 1,041.8 |
Stockholders' equity (deficit): | ||
Preferred stock, $0.01 par value: Authorized shares: 200,000,000; Issued and outstanding shares: 1,041,819 Series A convertible preferred stock | ||
Common stock, $0.01 par value: Authorized shares: 1,300,000,000; issued and outstanding shares: 204,247,592 and 200,095,232, respectively | 2.2 | 2.1 |
Additional paid-in capital | 2,536.3 | 2,512.9 |
Retained earnings (accumulated deficit) | (2,128.3) | (1,752.7) |
Accumulated other comprehensive loss | (217.5) | (155.9) |
Treasury stock, at cost: 10,838,972 shares and 9,223,081 shares, respectively | (276.1) | (251.4) |
Total stockholders' equity (deficit) | (83.4) | 355 |
Total liabilities and stockholders' equity (deficit) | $ 13,252 | $ 13,576.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 45.6 | $ 40.3 |
Property, plant and equipment, accumulated depreciation | $ 775.1 | $ 705.7 |
Series A convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Series A convertible preferred stock, shares issued | 1,041,819 | 1,041,819 |
Series A convertible preferred stock, shares outstanding | 1,041,819 | 1,041,819 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,300,000,000 | 1,300,000,000 |
Common stock, shares issued | 204,247,592 | 200,095,232 |
Common stock, shares outstanding | 204,247,592 | 200,095,232 |
Treasury stock, shares | 10,838,972 | 9,223,081 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | ||
Net loss | $ (375.6) | $ (597.3) |
Adjustments to reconcile net loss to net cash generated by operating activities: | ||
Depreciation and amortization | 595.8 | 618.8 |
Equity-based compensation | 61 | 90 |
Deferred income taxes | (158.1) | (96.6) |
Asset impairments | 0 | 206.7 |
Changes in assets and liabilities: | ||
Accounts receivable | (36.2) | 200.9 |
Inventories | (173.5) | (130.3) |
Prepaid expenses and other assets | 11 | 32.2 |
Accounts payable and other liabilities | 170.5 | (25) |
Other | 39.8 | 39.1 |
Net cash generated by operating activities | 134.7 | 338.5 |
Investing Activities: | ||
Additions to property, plant and equipment | (96.2) | (73.5) |
Proceeds from sale of property, plant and equipment | 2.6 | 0.2 |
Cash paid for Cable Exchange acquisition | (3.5) | |
Payments upon settlement of net investment hedge | (18) | |
Net cash used in investing activities | (111.6) | (76.8) |
Financing Activities: | ||
Long-term debt repaid | (1,274) | (1,174) |
Long-term debt proceeds | 1,250 | 950 |
Debt issuance costs | (9.6) | (11.6) |
Debt extinguishment costs | (34.4) | (14.9) |
Dividends paid on Series A convertible preferred stock | (43) | |
Proceeds from the issuance of common shares under equity-based compensation plans | 5.5 | 1 |
Tax withholding payments for vested equity-based compensation awards | (24.7) | (10.3) |
Other | 2.5 | |
Net cash used in financing activities | (127.7) | (259.8) |
Effect of exchange rate changes on cash and cash equivalents | (5.8) | (17.3) |
Change in cash and cash equivalents | (110.4) | (15.4) |
Cash and cash equivalent at beginning of period | 521.9 | 598.2 |
Cash and cash equivalents at end of period | $ 411.5 | $ 582.8 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, at Cost [Member] |
Beginning balance, Shares at Dec. 31, 2019 | 194,563,530 | |||||
Issuance of shares under equity-based compensation plans, shares | 3,513,837 | |||||
Shares surrendered under equity-based compensation plans | (1,086,700) | |||||
Ending balance, Shares at Sep. 30, 2020 | 196,990,667 | |||||
Beginning balance at Dec. 31, 2019 | $ 2 | $ 2,445.1 | $ (1,179.3) | $ (197) | $ (234.5) | |
Issuance of shares under equity-based compensation plans | 0.1 | 0.9 | ||||
Equity-based compensation | 90 | |||||
Dividend on Series A convertible preferred stock | (41.8) | |||||
Net loss | $ (597.3) | (597.3) | ||||
Other comprehensive income (loss), net of tax | (23.8) | |||||
Net shares surrendered under equity-based compensation plans | (10.3) | |||||
Ending balance at Sep. 30, 2020 | 254.1 | $ 2.1 | 2,494.2 | (1,776.6) | (220.8) | (244.8) |
Beginning balance, Shares at Jun. 30, 2020 | 195,997,230 | |||||
Issuance of shares under equity-based compensation plans, shares | 1,469,968 | |||||
Shares surrendered under equity-based compensation plans | (476,531) | |||||
Ending balance, Shares at Sep. 30, 2020 | 196,990,667 | |||||
Beginning balance at Jun. 30, 2020 | $ 2 | 2,474.3 | (1,660.3) | (275.4) | (240.8) | |
Issuance of shares under equity-based compensation plans | 0.1 | |||||
Equity-based compensation | 34 | |||||
Dividend on Series A convertible preferred stock | (14.1) | |||||
Net loss | (116.3) | (116.3) | ||||
Other comprehensive income (loss), net of tax | 54.6 | |||||
Net shares surrendered under equity-based compensation plans | (4) | |||||
Ending balance at Sep. 30, 2020 | $ 254.1 | $ 2.1 | 2,494.2 | (1,776.6) | (220.8) | (244.8) |
Beginning balance, Shares at Dec. 31, 2020 | 200,095,232 | 200,095,232 | ||||
Issuance of shares under equity-based compensation plans, shares | 5,768,251 | |||||
Shares surrendered under equity-based compensation plans | (1,615,891) | |||||
Ending balance, Shares at Sep. 30, 2021 | 204,247,592 | 204,247,592 | ||||
Beginning balance at Dec. 31, 2020 | $ 355 | $ 2.1 | 2,512.9 | (1,752.7) | (155.9) | (251.4) |
Issuance of shares under equity-based compensation plans | 0.1 | 5.4 | ||||
Equity-based compensation | 61 | |||||
Dividend on Series A convertible preferred stock | (43) | |||||
Net loss | (375.6) | (375.6) | ||||
Other comprehensive income (loss), net of tax | (61.6) | |||||
Net shares surrendered under equity-based compensation plans | (24.7) | |||||
Ending balance at Sep. 30, 2021 | $ (83.4) | $ 2.2 | 2,536.3 | (2,128.3) | (217.5) | (276.1) |
Beginning balance, Shares at Jun. 30, 2021 | 204,154,201 | |||||
Issuance of shares under equity-based compensation plans, shares | 97,750 | |||||
Shares surrendered under equity-based compensation plans | (4,359) | |||||
Ending balance, Shares at Sep. 30, 2021 | 204,247,592 | 204,247,592 | ||||
Beginning balance at Jun. 30, 2021 | $ 2.1 | 2,528.1 | (2,004.1) | (181.2) | (276) | |
Issuance of shares under equity-based compensation plans | 0.1 | 1.5 | ||||
Equity-based compensation | 21 | |||||
Dividend on Series A convertible preferred stock | (14.3) | |||||
Net loss | $ (124.2) | (124.2) | ||||
Other comprehensive income (loss), net of tax | (36.3) | |||||
Net shares surrendered under equity-based compensation plans | (0.1) | |||||
Ending balance at Sep. 30, 2021 | $ (83.4) | $ 2.2 | $ 2,536.3 | $ (2,128.3) | $ (217.5) | $ (276.1) |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Background and Basis of Presentation | 1. BACKGROUND AND BASIS OF PRESENTATION Background CommScope Holding Company, Inc., along with its direct and indirect subsidiaries (CommScope or the Company), is a global provider of infrastructure solutions for communication and entertainment networks. The Company’s solutions for wired and wireless networks enable service providers including cable, telephone and digital broadcast satellite operators and media programmers to deliver media, voice, Internet Protocol (IP) data services and Wi-Fi to their subscribers and allow enterprises to experience constant, wireless and wired connectivity across complex and varied networking environments. The Company’s solutions are complemented by a broad array of services including technical support, systems design and integration. CommScope is a leader in digital video and IP television distribution systems, broadband access infrastructure platforms and equipment that delivers data and voice networks to homes. CommScope’s global leadership position is built upon innovative technology, broad solution offerings, high-quality and cost-effective customer solutions, and global manufacturing and distribution scale. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for these interim periods are not necessarily indicative of the results of operations to be expected for any future period or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. In the second quarter of 2021, management shifted certain product lines from the Company’s Broadband Networks (Broadband) segment to its Home Networks (Home) segment to better align with how the business is being managed in light of the planned spin-off of the Home Networks business. All prior period amounts in these condensed consolidated financial statements have been recast to reflect these operating segment changes. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Annual Report). The significant accounting policies followed by the Company are set forth in Note 2 within the Company’s audited consolidated financial statements included in the 2020 Annual Report. There were no material changes in the Company’s significant accounting policies during the three or nine months ended September 30, 2021 . Concentrations of Risk and Related Party Transactions No direct customer accounted for 10 % or more of the Company’s total net sales during the three or nine months ended September 30, 2021. Net sales to Comcast Corporation and affiliates (Comcast) accounted for 11 % of the Company’s total net sales during the three and nine months ended September 30, 2020. Other than Comcast, no other direct customer accounted for 10 % or more of the Company’s total net sales during the three or nine months ended September 30, 2020. As of September 30, 2021, no direct customer accounted for 10 % or more of the Company’s accounts receivable. The Company relies on sole suppliers or a limited group of suppliers for certain key components, subassemblies and modules and a limited group of contract manufacturers to manufacture a significant portion of its products. Any disruption or termination of these arrangements could have a material adverse impact on the Company’s results of operations. As of September 30, 2021 , funds affiliated with Carlyle Partners VII S1 Holdings, L.P. (Carlyle) owned 100 % of the Series A convertible preferred stock (the Convertible Preferred Stock), which was sold to Carlyle to fund a portion of the acquisition of ARRIS International plc (ARRIS) in 2019. See Note 9 for further discussion of the Convertible Preferred Stock. Other than transactions related to the Convertible Preferred Stock, there were no material related party transactions for the three or nine months ended September 30, 2021 . Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods depending upon the product, subject to the warranty and the terms of the individual agreements . The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Product warranty accrual, beginning of period $ 69.5 $ 55.9 $ 59.5 $ 61.0 Provision for warranty claims 9.7 10.3 33.0 20.1 Warranty claims paid ( 9.2 ) ( 8.4 ) ( 22.4 ) ( 22.8 ) Foreign exchange ( 0.2 ) 0.2 ( 0.3 ) ( 0.3 ) Product warranty accrual, end of period $ 69.8 $ 58.0 $ 69.8 $ 58.0 Commitments and Contingencies The Company is party to certain intellectual property claims and periodically receives notices asserting that its products infringe on another party’s patents and other intellectual property rights. These claims and assertions, whether against the Company directly or against its customers, could require the Company to pay damages, royalties, stop offering the relevant products and/or cease other activities. The Company may also be called upon to indemnify certain customers for costs related to products sold to such customers. The outcome of these claims and notices is uncertain and a reasonable estimate of the loss from unfavorable outcomes in certain of these matters either cannot be determined or is estimated at the minimum amount of a range of estimates. The actual loss could be material and may vary significantly from our estimates. As of September 30, 2021 , the Company had a liability of $ 21.7 million recorded in accrued and other liabilities and noncurrent liabilities on the Condensed Consolidated Balance Sheets related to certain intellectual property assertions that have been settled or are in process of settlement. For the three and nine months ended September 30, 2021, the Company recorded charges to cost of sales in the Condensed Consolidated Statements of Operations of $ 5.0 million and $ 46.5 million, respectively, related to these intellectual property assertions. These charges are reflected in the results of the Broadband, Home and Venue and Campus Networks segments. The Company paid $ 51.0 million and $ 55.0 million during the three and nine months ended September 30, 2021, respectively, to settle intellectual property assertions. The Company is either a plaintiff or a defendant in certain other pending legal matters in the normal course of business. Management believes none of these other pending legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. There were no indicators of goodwill impairment identified during the three months ended September 30, 2021. During the nine months ended September 30, 2021, the Company assessed goodwill for impairment due to a change in the composition of certain reporting units. The Company performed impairment testing immediately before and after the change and determined that no goodwill impairment existed. See Note 2 for further discussion. There were no indicators of goodwill impairment identified during the three months ended September 30, 2020, but during the nine months ended September 30, 2020, the Company recorded a $ 206.7 million goodwill impairment charge as a result of lower projected operating results for the Home Networks reporting unit in the Home segment. Property, plant and equipment, intangible assets and right of use assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are adjusted to estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment and are then measured at fair value if an impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three or nine months ended September 30, 2021 or 2020 . Income Taxes For the three months ended September 30, 2021, the Company’s effective tax rate was 22.1 % and the Company recognized a tax benefit of $ 35.2 million on a pretax loss of $ 159.4 million. The Company’s tax benefit was higher than the statutory rate of 21 % due to favorable changes in uncertain tax positions. For the nine months ended September 30, 2021, the Company’s effective tax rate was 14.8 % and the Company recognized a tax benefit of $ 65.3 million on a pretax loss of $ 440.9 million. The Company’s tax benefit was lower than the statutory rate primarily due to the impact of $ 37.4 million in tax expense related to a foreign tax rate change. For the three months ended September 30, 2020, the Company’s effective tax rate was ( 8.7 )% and the Company recognized income tax expense of $ 9.3 million on a pretax loss of $ 107.0 million. The income tax expense on the Company’s pretax loss was driven by $ 19.2 million of tax expense related to a foreign tax rate change. For the nine months ended September 30, 2020, the Company’s effective tax rate was 5.9 % and the Company recognized a tax benefit of $ 37.2 million on a pretax loss of $ 634.5 million. The Company’s tax benefit in the nine months ended September 30, 2020 was impacted unfavorably primarily due to a goodwill impairment charge of $ 206.7 million, for which minimal tax benefits were recorded, $ 22.7 million of tax expense related to state valuation allowances and $ 19.2 million in income tax expense related to a foreign tax rate change. For both the three and nine months ended September 30, 2020, the Company’s tax rate was also impacted favorably by federal tax credits and unfavorably by U.S. anti-deferral provisions and foreign withholding taxes. Excess tax costs of $ 1.2 million and $ 9.0 million related to equity compensation awards also impacted the income taxes unfavorably for the three and nine months ended September 30, 2020, respectively. Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) is computed by dividing net income (loss), less any dividends and deemed dividends related to the Convertible Preferred Stock, by the weighted average number of common shares outstanding during the period. The numerator in diluted EPS is based on the basic EPS numerator adjusted to add back any dividends and deemed dividends related to the Convertible Preferred Stock, subject to antidilution requirements. The denominator used in diluted EPS is based on the basic EPS computation plus the effect of potentially dilutive common shares related to the Convertible Preferred Stock and equity-based compensation plans, subject to antidilution requirements. For the three and nine months ended September 30, 2021, 11.9 million and 12.3 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because the effect was antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2021, 5.0 million and 5.2 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the three and nine months ended September 30, 2020, 18.9 million and 17.4 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because the effect was either antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2020, 4.7 million and 4.5 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For both the three and nine months ended September 30, 2021, 37.9 million of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were antidilutive. For the three and nine months ended September 30, 2020, 37.4 million and 36.9 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were antidilutive. These shares may have been considered dilutive if the Company had not been in a net loss position. The following table presents the basis for the EPS computations (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ ( 124.2 ) $ ( 116.3 ) $ ( 375.6 ) $ ( 597.3 ) Dividends on Series A convertible preferred stock ( 14.3 ) ( 14.1 ) ( 43.0 ) ( 41.8 ) Net loss attributable to common stockholders $ ( 138.5 ) $ ( 130.4 ) $ ( 418.6 ) $ ( 639.1 ) Denominator: Weighted average common shares outstanding - basic 204.2 196.9 203.3 195.9 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — — — — Weighted average common shares outstanding - diluted 204.2 196.9 203.3 195.9 Loss per share: Basic $ ( 0.68 ) $ ( 0.66 ) $ ( 2.06 ) $ ( 3.26 ) Diluted $ ( 0.68 ) $ ( 0.66 ) $ ( 2.06 ) $ ( 3.26 ) Recent Accounting Pronouncements Adopted During the Nine Months Ended September 30, 2021 On January 1, 2021, the Company adopted Accounting Standards Update (ASU) No. 2020-01 , Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The new guidance is based on a consensus of the Emerging Issues Task Force and is expected to improve comparability in accounting for these transactions. The amendments in this guidance clarify the interaction of accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The impact of adopting this new guidance was not material to the consolidated financial statements. On January 1, 2021, the Company adopted ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance. The impact of adopting this new guidance was not material to the consolidated financial statements. Issued but Not Adopted In August 2020, the Financial Accounting Standards Board (FASB) issued ASU No. 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 . The new guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share, along with expanded disclosures. ASU No. 2020-06 is effective for the Company as of January 1, 2022 and early adoption is permitted beginning January 1, 2021. The Company is currently evaluating the impact of the new guidance on the consolidated financial statements. In March 2020 and January 2021, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope , respectively. Together, the ASUs provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The Company can elect to apply the amendments through December 31, 2022. The Company is currently evaluating the impact of this guidance on the consolidated financial statements . |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 2. GOODWILL The following table presents the activity in goodwill by reportable segment. December 31, 2020 Activity September 30, 2021 Goodwill Accumulated Impairment Losses Total Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total Broadband $ 3,369.7 $ ( 193.6 ) $ 3,176.1 $ ( 33.3 ) $ 3,336.4 $ ( 193.6 ) $ 3,142.8 OWN 669.1 ( 159.5 ) 509.6 ( 3.2 ) 665.9 ( 159.5 ) 506.4 VCN 1,642.0 ( 41.2 ) 1,600.8 ( 10.0 ) 1,632.0 ( 41.2 ) 1,590.8 Home 399.5 ( 399.5 ) — 13.7 413.2 ( 399.5 ) 13.7 Total $ 6,080.3 $ ( 793.8 ) $ 5,286.5 $ ( 32.8 ) $ 6,047.5 $ ( 793.8 ) $ 5,253.7 In the second quarter of 2021, management shifted certain product lines from the Company’s Broadband segment to its Home segment to better align the Home segment with how the business is being managed in light of the planned spin-off of the Home Networks business. This changed the composition of the Company’s reporting units which resulted in the reallocation of $ 13.7 million of goodwill from the Network and Cloud reporting unit to the Home Networks reporting unit . |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue From Contracts With Customers | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Net Sales The majority of the Company’s net sales are product sales that are recognized at a point in time. The Company does have some customer arrangements where net sales are recognized over time, but this does not represent a significant portion of consolidated net sales. Contracts with net sales recognized over time are primarily concentrated in the Broadband Networks and Venue and Campus Networks segments. In the first quarter of 2021, the Company determined that the geographic disaggregation of net sales by segment is a more meaningful disaggregation of net sales than net sales disaggregated based on the timing of the transfer of goods, given the relatively low level of net sales recognized over time. Therefore, the presentation of net sales by geographic region in Note 7 has been expanded to include segments and the presentation of net sales based on the timing of the transfer of goods has been eliminated. Allowance for Doubtful Accounts Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Allowance for doubtful accounts, beginning of period $ 30.8 $ 43.4 $ 40.3 $ 35.4 Provision (benefit) 15.6 ( 1.1 ) 7.3 8.8 Write-offs ( 0.2 ) ( 0.3 ) ( 0.7 ) ( 3.0 ) Foreign exchange and other ( 0.6 ) 1.1 ( 1.3 ) 1.9 Allowance for doubtful accounts, end of period $ 45.6 $ 43.1 $ 45.6 $ 43.1 Customer Contract Balances The following table provides the balance sheet location and amounts of contract assets, or unbilled accounts receivable, and contract liabilities, or deferred revenue, from contracts with customers as of September 30, 2021 and December 31, 2020. Contract Balance Type Balance Sheet Location September 30, December 31, Unbilled accounts receivable Accounts receivable, less allowance for doubtful accounts $ 37.2 $ 21.9 Deferred revenue - current Accrued and other liabilities 108.2 90.0 Deferred revenue - noncurrent Other noncurrent liabilities 59.3 53.2 Total contract liabilities $ 167.5 $ 143.2 There were no material changes to contract asset balances for the three or nine months ended September 30, 2021 as a result of changes in estimates or impairments. The change in the contract liability balance from December 31, 2020 to September 30, 2021 was primarily due to upfront support billings recognized over the support term. During the three and nine months ended September 30, 2021, the Company recognized revenue related to contract liabilities recorded as of December 31, 2020 of $ 17.5 million and $ 71.2 million, respectively. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | 4. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories September 30, December 31, Raw materials $ 361.4 $ 280.2 Work in process 165.0 140.6 Finished goods 725.8 668.1 $ 1,252.2 $ 1,088.9 Accrued and Other Liabilities September 30, December 31, Compensation and employee benefit liabilities $ 266.6 $ 277.9 Deferred revenue 108.2 90.0 Accrued interest 58.0 120.2 Product warranty accrual 54.7 45.8 Operating lease liabilities 51.3 62.4 Restructuring reserve 47.2 22.0 Patent claims and litigation settlements 13.6 25.7 Other 285.0 266.6 $ 884.6 $ 910.6 Operating Lease Information Balance Sheet Location September 30, December 31, Right of use assets Other noncurrent assets $ 139.5 $ 159.3 Lease liabilities Accrued and other liabilities $ 51.3 $ 62.4 Lease liabilities Other noncurrent liabilities 109.2 119.1 Total lease liabilities $ 160.5 $ 181.5 Accumulated Other Comprehensive Loss The following table presents changes in accumulated other comprehensive loss (AOCL), net of tax: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Foreign currency translation Balance at beginning of period $ ( 110.3 ) $ ( 227.7 ) $ ( 80.5 ) $ ( 162.7 ) Other comprehensive income (loss) ( 41.4 ) 63.7 ( 71.7 ) ( 1.3 ) Amounts reclassified from AOCL 0.5 — 1.0 — Balance at end of period $ ( 151.2 ) $ ( 164.0 ) $ ( 151.2 ) $ ( 164.0 ) Defined benefit plan activity Balance at beginning of period $ ( 35.8 ) $ ( 25.9 ) $ ( 36.4 ) $ ( 25.4 ) Amounts reclassified from AOCL 0.3 ( 0.1 ) 0.9 ( 0.6 ) Balance at end of period $ ( 35.5 ) $ ( 26.0 ) $ ( 35.5 ) $ ( 26.0 ) Hedging instruments Balance at beginning of period $ ( 35.1 ) $ ( 21.8 ) $ ( 39.0 ) $ ( 8.9 ) Other comprehensive income (loss) 4.3 ( 9.0 ) 8.2 ( 21.9 ) Balance at end of period $ ( 30.8 ) $ ( 30.8 ) $ ( 30.8 ) $ ( 30.8 ) Net AOCL at end of period $ ( 217.5 ) $ ( 220.8 ) $ ( 217.5 ) $ ( 220.8 ) Amounts reclassified from net AOCL related to foreign currency translation and defined benefit plans are recorded in other expense, net in the Condensed Consolidated Statements of Operations. Cash Flow Information Nine Months Ended September 30, 2021 2020 Cash paid during the period for: Income taxes, net of refunds $ 64.3 $ 61.8 Interest 455.5 451.8 |
Financing
Financing | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing | 5. FINANCING September 30, 2021 December 31, 2020 7.125 % senior notes due July 2028 $ 700.0 $ 700.0 5.00 % senior notes due March 2027 750.0 750.0 8.25 % senior notes due March 2027 1,000.0 1,000.0 6.00 % senior notes due June 2025 1,300.0 1,300.0 4.75 % senior secured notes due September 2029 1,250.0 — 6.00 % senior secured notes due March 2026 1,500.0 1,500.0 5.50 % senior secured notes due March 2024 — 1,250.0 Senior secured term loan due April 2026 3,136.0 3,160.0 Senior secured revolving credit facility — — Total principal amount of debt $ 9,636.0 $ 9,660.0 Less: Original issue discount, net of amortization ( 21.5 ) ( 24.8 ) Less: Debt issuance costs, net of amortization ( 101.5 ) ( 114.6 ) Less: Current portion ( 32.0 ) ( 32.0 ) Total long-term debt $ 9,481.0 $ 9,488.6 See Note 8 in the Notes to Consolidated Financial Statements in the 2020 Annual Report for additional information on the terms and conditions of the Company’s debt obligations except the new 4.75 % senior secured notes due 2029 (the 2029 Secured Notes), which are described below. 4.75 % Senior Secured Notes due September 2029 On August 23, 2021, the Company issued $ 1,250.0 million aggregate principal amount of the 2029 Secured Notes. The Company will pay interest on the 2029 Secured Notes semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2022 . Unless repurchased or redeemed earlier, the 2029 Secured Notes will mature on September 1, 2029 . The 2029 Secured Notes were offered in a private placement exempt from registration under the Securities Act of 1933, as amended (the Securities Act), to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside of the United States in reliance on Regulation S under the Securities Act. The Company used the net proceeds from the offering of the 2029 Secured Notes, together with cash on hand, to redeem and retire all of the outstanding 5.50 % senior secured notes due 2024 (the 2024 Secured Notes) and pay fees and expenses related to the transaction. The redemption of the 2024 Secured Notes resulted in a charge of $ 34.4 million, reflected in other expense, net, and the write-off of $ 9.9 million of debt issuance costs, reflected in interest expense, during the three and nine months ended September 30, 2021. The 2029 Secured Notes are guaranteed on a senior secured basis by CommScope Holding Company, Inc. and each of CommScope, Inc.’s existing and future wholly owned domestic restricted subsidiaries that is an obligor under the senior secured credit facilities or certain other debt, subject to certain exceptions. The 2029 Secured Notes and the related guarantees are secured on a first-priority basis by security interests in all of the assets that secure indebtedness under the 2026 Term Loan (as defined below) on a first-priority basis, and on a second-priority basis in all assets that secure the Revolving Credit Facility (as defined below) on a first-priority basis and the 2026 Term Loan on a second-priority basis. The 2029 Secured Notes and the related guarantees rank senior in right of payment to all of CommScope, Inc.’s and the guarantors’ subordinated indebtedness and equally in right of payment with all of CommScope, Inc.’s and the guarantors’ senior indebtedness (without giving effect to collateral arrangements), including the senior secured credit facilities and the Company’s other senior notes. The 2029 Secured Notes and the related guarantees are effectively subordinated to any of CommScope, Inc.’s or the guarantors’ indebtedness that is secured by assets that do not constitute collateral for the 2029 Secured Notes and effectively subordinated to any of CommScope, Inc.’s or the guarantors’ indebtedness that is secured by a senior-priority lien, including under the senior secured asset-based revolving credit facility (the Revolving Credit Facility), in each case to the extent of the value of the assets securing such indebtedness. In addition, the 2029 Secured Notes and related guarantees are structurally subordinated to all existing and future liabilities (including trade payables) of CommScope, Inc.’s subsidiaries that do not guarantee the 2029 Secured Notes. The 2029 Secured Notes may be redeemed prior to maturity under certain circumstances. Upon certain change of control events, the 2029 Secured Notes may be redeemed at the option of the holders at 101 % of their principal amount, plus accrued and unpaid interest. The 2029 Secured Notes may be redeemed by CommScope, Inc. on or after September 1, 2024 at the redemption prices specified in the indenture governing the 2029 Secured Notes. Prior to September 1, 2024, the 2029 Secured Notes may be redeemed by CommScope, Inc. at a redemption price equal to 100 % of their principal amount, plus a make-whole premium (as specified in the indenture governing the 2029 Secured Notes), plus accrued and unpaid interest. Prior to September 1, 2024, under certain circumstances, CommScope, Inc. may also redeem up to 40 % of the aggregate principal amount of the 2029 Secured Notes at a redemption price of 104.750 %, plus accrued and unpaid interest, using the proceeds of certain equity offerings. At any time prior to September 1, 2024, CommScope, Inc. may redeem during each calendar year up to 10 % of the aggregate principal amount of the 2029 Secured Notes at a redemption price equal to 103 % of the aggregate principal amount of the 2029 Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. In connection with issuing the 2029 Secured Notes, the Company incurred costs of $ 11.8 million during the three and nine months ended September 30, 2021, which were recorded as a reduction of the carrying amount of the debt and are being amortized over the term of the 2029 Secured Notes. Senior Secured Credit Facilities During the three and nine months ended September 30, 2021, the Company did no t borrow under the Revolving Credit Facility. As of September 30, 2021 , the Company had no outstanding borrowings under the Revolving Credit Facility and had availability of $ 686.4 million, after giving effect to borrowing base limitations and outstanding letters of credit. During the three and nine months ended September 30, 2021 , the Company made quarterly scheduled amortization payments totaling $ 8.0 million and $ 24.0 million, respectively, on the senior secured term loan due in 2026 (the 2026 Term Loan). The current portion of long-term debt reflects $ 32.0 million of repayments due under the 2026 Term Loan. No portion of the 2026 Term Loan was reflected as a current portion of long-term debt as of September 30, 2021 related to the potentially required excess cash flow payment because the amount that may be payable in 2022, if any, cannot currently be reliably estimated. There is no excess cash flow payment required in 2021 related to 2020. Other Matters The following table summarizes scheduled maturities of long-term debt as of September 30, 2021: Remainder 2022 2023 2024 2025 Thereafter Scheduled maturities of long-term debt $ 8.0 $ 32.0 $ 32.0 $ 32.0 $ 1,332.0 $ 8,200.0 The Company’s non-guarantor subsidiaries held $ 3,205 million, or 24 %, of total assets and $ 1,021 million, or 8 %, of total liabilities as of September 30, 2021 and accounted for $ 695 million, or 33 %, and $ 1,990 million, or 31 %, of net sales for the three and nine months ended September 30, 2021, respectively. As of December 31, 2020 , the non-guarantor subsidiaries held $ 3,488 million, or 26 %, of total assets and $ 956 million, or 8 %, of total liabilities. For the three and nine months ended September 30, 2020 , the non-guarantor subsidiaries accounted for $ 637 million, or 29 % and $ 1,834 million, or 29 %, of net sales, respectively. All amounts presented exclude intercompany balances. The weighted average effective interest rate on outstanding borrowings, including the impact of the interest rate swap, and the amortization of debt issuance costs and original issue discount, was 5.74 % and 5.86 % as of September 30, 2021 and December 31, 2020 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, debt instruments, interest rate derivatives and foreign currency contracts. For cash and cash equivalents, trade receivables and trade payables, the carrying amounts of these financial instruments as of September 30, 2021 and December 31, 2020 were considered representative of their fair values due to their short terms to maturity. The fair values of the Company’s debt instruments, interest rate derivatives and foreign currency contracts were based on indicative quotes. Fair value measurements using quoted prices in active markets for identical assets and liabilities fall within Level 1 of the fair value hierarchy, measurements using significant other observable inputs fall within Level 2, and measurements using significant unobservable inputs fall within Level 3. The carrying amounts, estimated fair values and valuation input levels of the Company’s debt instruments, interest rate derivatives and foreign currency contracts as of September 30, 2021 and December 31, 2020, are as follows: September 30, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value Valuation Assets: Foreign currency contracts $ 3.5 $ 3.5 $ 11.7 $ 11.7 Level 2 Liabilities: 7.125% senior notes due 2028 $ 700.0 $ 714.1 $ 700.0 $ 743.8 Level 2 5.00% senior notes due 2027 750.0 710.7 750.0 741.5 Level 2 8.25% senior notes due 2027 1,000.0 1,045.0 1,000.0 1,068.5 Level 2 6.00% senior notes due 2025 1,300.0 1,319.5 1,300.0 1,329.3 Level 2 4.75% senior secured notes due 2029 1,250.0 1,246.9 — — Level 2 6.00% senior secured notes due 2026 1,500.0 1,560.6 1,500.0 1,576.8 Level 2 5.50% senior secured notes due 2024 — — 1,250.0 1,285.9 Level 2 Senior secured term loan due 2026 3,136.0 3,126.2 3,160.0 3,156.1 Level 2 Foreign currency contracts 1.6 1.6 24.4 24.4 Level 2 Interest rate swap contracts 18.2 18.2 29.9 29.9 Level 2 These fair value estimates are based on pertinent information available to management as of the valuation date. Although management is not aware of any factors that would significantly affect these fair value estimates, such amounts have not been comprehensively revalued for purposes of these financial statements since those dates, and current estimates of fair value may differ significantly from the amounts presented. |
Segments and Geographic Informa
Segments and Geographic Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | 7. SEGMENTS AND GEOGRAPHIC INFORMATION The Company has four reportable segments as described below. The Broadband Networks (Broadband) segment provides an end-to-end product portfolio serving the telco and cable provider broadband market. The segment includes converged cable access platform, passive optical networking, video systems, access technologies, fiber and coaxial cable, fiber and copper connectivity and hardened closures. The Outdoor Wireless Networks (OWN) segment focuses on the macro and metro cell markets. The segment includes base station antennas, RF filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel, accessories, Spectrum Access Systems and Comsearch. The Venue and Campus Networks (VCN) segment targets both public and private networks for campuses, venues, data centers and buildings. The segment combines Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells and enterprise fiber and copper infrastructure. The Home Networks (Home) segment includes subscriber-based solutions that support broadband and video applications. The broadband offerings in the Home segment include devices that provide residential connectivity to a service provider’s network, such as digital subscriber line and cable modems and telephony and data gateways which incorporate routing and Wi-Fi functionality. Video offerings include set top boxes that support cable, satellite and IP television content delivery and include products such as digital video recorders, high definition set top boxes and hybrid set top devices. In the second quarter of 2021, management shifted certain product lines from the Company’s Broadband segment to its Home segment to better align with how the business is being managed in light of the planned spin-off of the Home Networks business. All prior period amounts in these condensed consolidated financial statements have been recast to reflect these operating segment changes. The following table provides summary financial information by reportable segment: September 30, 2021 December 31, 2020 Identifiable segment-related assets: Broadband $ 6,315.1 $ 6,441.1 OWN 1,341.9 1,264.4 VCN 3,311.7 3,352.3 Home 1,438.7 1,709.0 Total identifiable segment-related assets 12,407.4 12,766.8 Reconciliation to total assets: Cash and cash equivalents 411.5 521.9 Deferred income tax assets 433.1 288.1 Total assets $ 13,252.0 $ 13,576.8 The Company’s measurement of segment performance is adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization). The Company defines adjusted EBITDA as operating income (loss), adjusted to exclude depreciation, amortization of intangible assets, restructuring costs, asset impairments, equity-based compensation, transaction, transformation and integration costs and other items that the Company believes are useful to exclude in the evaluation of operating performance from period to period because these items are not representative of the Company’s core business. The following table provides net sales, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net sales: Broadband $ 779.7 $ 811.0 $ 2,366.4 $ 2,069.8 OWN 355.6 271.8 1,036.2 949.0 VCN 554.9 511.8 1,587.4 1,459.7 Home 415.1 573.5 1,372.6 1,825.6 Consolidated net sales $ 2,105.3 $ 2,168.1 $ 6,362.6 $ 6,304.1 Segment adjusted EBITDA: Broadband $ 158.1 $ 202.3 $ 488.3 $ 414.9 OWN 60.5 53.6 214.4 218.4 VCN 56.0 55.6 135.1 131.6 Home ( 15.5 ) 30.4 18.6 88.1 Total segment adjusted EBITDA 259.1 341.9 856.4 853.0 Amortization of intangible assets ( 153.0 ) ( 158.1 ) ( 461.9 ) ( 473.5 ) Restructuring (costs) credits, net 3.1 ( 40.3 ) ( 100.2 ) ( 83.6 ) Equity-based compensation ( 21.0 ) ( 34.0 ) ( 61.0 ) ( 90.0 ) Asset impairments — — — ( 206.7 ) Transaction, transformation and integration costs ( 26.2 ) ( 4.8 ) ( 62.7 ) ( 17.8 ) Acquisition accounting adjustments ( 2.8 ) ( 5.1 ) ( 9.0 ) ( 15.8 ) Patent claims and litigation settlements ( 5.0 ) 1.4 ( 46.5 ) ( 11.4 ) Executive severance — ( 6.3 ) — ( 6.3 ) Depreciation ( 33.2 ) ( 38.9 ) ( 103.6 ) ( 118.7 ) Consolidated operating income (loss) $ 21.0 $ 55.8 $ 11.5 $ ( 170.8 ) Depreciation expense: Broadband $ 14.1 $ 14.6 $ 42.8 $ 44.2 OWN 3.8 4.1 11.4 12.7 VCN 10.3 11.7 31.8 34.9 Home 5.0 8.5 17.6 26.9 Consolidated depreciation expense $ 33.2 $ 38.9 $ 103.6 $ 118.7 Additions to property, plant and equipment: Broadband $ 22.5 $ 9.0 $ 55.3 $ 27.1 OWN 2.7 3.6 7.6 10.3 VCN 8.0 7.4 26.1 20.3 Home 2.8 5.8 7.2 15.8 Consolidated additions to property, plant and equipment $ 36.0 $ 25.8 $ 96.2 $ 73.5 Sales to customers located outside of the U.S. comprised 42.9 % and 42.7 % of total net sales for the three and nine months ended September 30, 2021 , respectively, compared to 39.2 % and 38.3 %, of total net sales for the three and nine months ended September 30, 2020 , respectively. The following table presents net sales by reportable segment, disaggregated based on geographic region: Three Months Ended September 30, Broadband OWN VCN Home Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Geographic Region: United States $ 477.4 $ 545.4 $ 227.6 $ 163.2 $ 300.8 $ 277.9 $ 196.0 $ 331.7 $ 1,201.8 $ 1,318.2 Europe, Middle East 127.7 109.6 67.4 61.5 116.2 109.9 107.5 126.3 418.8 407.3 Asia Pacific 60.9 79.8 35.0 22.6 108.4 103.9 24.1 12.8 228.4 219.1 Caribbean and Latin 87.2 56.3 13.2 21.4 23.4 13.3 32.4 58.9 156.2 149.9 Canada 26.5 19.9 12.4 3.1 6.1 6.8 55.1 43.8 100.1 73.6 Consolidated net sales $ 779.7 $ 811.0 $ 355.6 $ 271.8 $ 554.9 $ 511.8 $ 415.1 $ 573.5 $ 2,105.3 $ 2,168.1 Nine Months Ended September 30, Broadband OWN VCN Home Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Geographic Region: United States $ 1,495.1 $ 1,334.0 $ 649.1 $ 645.6 $ 816.3 $ 808.1 $ 687.4 $ 1,104.6 $ 3,647.9 $ 3,892.3 Europe, Middle East 343.0 310.0 195.3 185.0 345.0 310.6 330.0 355.8 1,213.3 1,161.4 Asia Pacific 180.6 193.6 111.6 62.1 340.5 279.9 65.2 62.9 697.9 598.5 Caribbean and Latin 278.3 162.6 32.8 43.9 57.8 39.2 169.7 186.6 538.6 432.3 Canada 69.4 69.6 47.4 12.4 27.8 21.9 120.3 115.7 264.9 219.6 Consolidated net sales $ 2,366.4 $ 2,069.8 $ 1,036.2 $ 949.0 $ 1,587.4 $ 1,459.7 $ 1,372.6 $ 1,825.6 $ 6,362.6 $ 6,304.1 |
Restructuring Costs (Credits),
Restructuring Costs (Credits), Net | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs (Credits), Net | 8. RESTRUCTURING COSTS (CREDITS), NET The Company incurs costs associated with restructuring initiatives intended to improve overall operating performance and profitability. The costs related to restructuring actions are generally cash-based and primarily consist of employee-related costs, which include severance and other one-time termination benefits. In addition to the employee-related costs, the Company also records other costs associated with restructuring actions such as the gain or loss on the sale of facilities and impairment costs arising from unutilized real estate or equipment. The Company attempts to sell or lease this unutilized space but additional impairment charges may be incurred related to these or other excess assets. The Company’s net pretax restructuring activity included in restructuring costs (credits), net on the Condensed Consolidated Statements of Operations, by segment, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Broadband $ ( 3.6 ) $ 11.7 $ 69.6 $ 16.9 OWN 0.4 5.9 6.6 9.8 VCN ( 0.1 ) 18.9 16.0 29.0 Home 0.2 3.8 8.0 27.9 Total $ ( 3.1 ) $ 40.3 $ 100.2 $ 83.6 Restructuring liabilities were included in the Company’s Condensed Consolidated Balance Sheets as follows: September 30, December 31, Accrued and other liabilities $ 47.2 $ 22.0 Other noncurrent liabilities 33.9 4.0 Total restructuring liabilities $ 81.1 $ 26.0 CommScope NEXT Restructuring Actions In the first quarter of 2021, the Company announced and began implementing a business transformation initiative called CommScope NEXT. This initiative is designed to drive shareholder value through three pillars: focusing on strategies to drive profitable growth, undertaking a full portfolio evaluation and optimizing the business by focusing on efficiency and eliminating unnecessary non-value-added complexity and cost across the business. The activity within the liability established for CommScope NEXT restructuring actions was as follows: Employee- Other Total Balance at June 30, 2021 $ 68.4 $ — $ 68.4 Expense reversal, net ( 5.1 ) — ( 5.1 ) Cash paid ( 4.9 ) — ( 4.9 ) Balance at September 30, 2021 $ 58.4 $ — $ 58.4 Balance at December 31, 2020 $ — $ — $ — Additional expense, net 83.1 4.0 87.1 Cash paid ( 24.7 ) — ( 24.7 ) Non-cash items — ( 4.0 ) ( 4.0 ) Balance at September 30, 2021 $ 58.4 $ — $ 58.4 CommScope NEXT actions to date have included the planned closure of a manufacturing facility as well as headcount reductions in manufacturing, engineering, marketing, sales and administrative functions. The Company expects to make cash payments of $ 2.3 million during the remainder of 2021 and additional cash payments of $ 56.1 million between 2022 and 2023 to settle CommScope NEXT restructuring actions. Additional restructuring actions related to CommScope NEXT are expected to be identified and the resulting charges and cash requirements are expected to be material. ARRIS Integration Restructuring Actions In anticipation of and following the acquisition of ARRIS, the Company initiated a series of restructuring actions to integrate and streamline operations and achieve cost synergies. The activity within the liability established for the ARRIS integration restructuring actions was as follows: Employee- Other Total Balance at June 30, 2021 $ 22.6 $ 0.2 $ 22.8 Additional expense, net 1.3 0.7 2.0 Cash paid ( 1.6 ) ( 0.3 ) ( 1.9 ) Non-cash items — ( 0.6 ) ( 0.6 ) Balance at September 30, 2021 $ 22.3 $ — $ 22.3 Balance at December 31, 2020 $ 24.4 $ 0.8 $ 25.2 Additional expense, net 10.5 2.6 13.1 Cash paid ( 12.6 ) ( 1.3 ) ( 13.9 ) Non-cash items — ( 2.1 ) ( 2.1 ) Balance at September 30, 2021 $ 22.3 $ — $ 22.3 The ARRIS integration actions included headcount reductions in manufacturing, sales, engineering, marketing and administrative functions. The Company has recognized restructuring charges of $ 187.7 million since the ARRIS acquisition for integration actions. For the three and nine months ended September 30, 2021, the other restructuring category primarily includes activity from impairment of operating lease right of use assets related to ceasing use of certain leased facilities as part of restructuring activities, which is included in restructuring costs, net on the Condensed Consolidated Statements of Operations. The Company expects to make cash payments of $ 17.9 million during the remainder of 2021 and additional cash payments of $ 4.4 million in 2022 to settle the ARRIS integration initiatives. The Company does not expect to identify significant additional restructuring actions related to the ARRIS integration. |
Series A Convertible Preferred
Series A Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Series A Convertible Preferred Stock | 9. SERIES A CONVERTIBLE PREFERRED STOCK On April 4, 2019, the Company issued and sold 1,000,000 shares of the Convertible Preferred Stock to Carlyle for $ 1.0 billion, or $ 1,000 per share, pursuant to an Investment Agreement between the Company and Carlyle, dated November 8, 2018 . The Convertible Preferred Stock is convertible at the option of the holders at any time into shares of CommScope common stock at an initial conversion rate of 36.3636 shares of common stock per share of the Convertible Preferred Stock (equivalent to $ 27.50 per common share). The conversion rate is subject to customary anti-dilution and other adjustments. Holders of the Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5 % per year , payable quarterly in arrears. Dividends can be paid in cash, in-kind through the issuance of additional shares of the Convertible Preferred Stock or any combination of the two, at the Company’s option. During the three and nine months ended September 30, 2021 , the Company paid cash dividends of $ 14.3 million and $ 43.0 million, respectively. During the three and nine months ended September 30, 2020, the Company paid dividends in-kind of $ 14.1 million and $ 41.8 million, respectively, which was recorded as additional Convertible Preferred Stock in the Condensed Consolidated Balance Sheets. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 10. STOCKHOLDERS’ EQUITY Equity-Based Compensation Plans As of September 30, 2021 , $ 127.0 million of total unrecognized compensation expense related to unvested stock options, restricted stock units (RSUs) and performance share units (PSUs) is expected to be recognized over a remaining weighted average period of 2.1 years. There were no significant capitalized equity-based compensation costs at September 30, 2021. During the nine months ended September 30, 2021, the Company’s stockholders approved the termination of certain executive performance stock options, which is reflected as forfeited stock options below, and the grant of selective performance-based retention equity awards, which is reflected in PSUs granted below. The impact under modification accounting was not material to the condensed consolidated financial statements. The following table shows a summary of the equity-based compensation expense included in the Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Selling, general and administrative $ 10.8 $ 18.6 $ 31.2 $ 49.3 Cost of sales 3.5 5.5 10.0 14.5 Research and development 6.7 9.9 19.8 26.2 Total equity-based compensation expense $ 21.0 $ 34.0 $ 61.0 $ 90.0 Stock Options Stock options are awards that allow the recipient to purchase shares of the Company’s common stock at a fixed price. Stock options are granted at an exercise price equal to the Company’s stock price at the date of grant. These awards generally vest over five years following the grant date and have a contractual term of ten years . The Company uses the Black-Scholes model to estimate the fair value of stock option awards at the date of grant. Key inputs and assumptions used in the model include the grant date fair value of common stock, exercise price of the award, the expected option term, the risk-free interest rate, stock price volatility and the Company’s projected dividend yield. There were no stock option awards granted during the three and nine months ended September 30, 2021 or 2020. The following table summarizes the stock option activity (in millions, except per share data and years): Shares Weighted Weighted Aggregate Options outstanding at June 30, 2021 3.2 $ 23.95 5.8 $ 6.5 Exercised ( 0.1 ) $ 18.60 Forfeited ( 0.1 ) $ 18.60 Expired ( 0.1 ) $ 27.82 Options outstanding at September 30, 2021 2.9 $ 24.19 5.1 $ 0.5 Options outstanding at December 31, 2020 6.2 $ 19.86 6.6 $ 5.6 Exercised ( 0.8 ) $ 7.18 Forfeited ( 2.4 ) $ 18.40 Expired ( 0.1 ) $ 25.88 Options outstanding at September 30, 2021 2.9 $ 24.19 5.1 $ 0.5 Options vested at September 30, 2021 2.2 $ 25.93 4.3 $ 0.4 Options unvested at September 30, 2021 0.7 $ 18.14 7.6 $ 0.1 The exercise prices of outstanding options at September 30, 2021 were in the following ranges (in millions, except per share data and years): Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Weighted Shares Weighted $ 5.50 to $ 18.50 0.1 4.6 $ 10.15 0.1 $ 9.20 $ 18.51 to $ 30.00 1.9 5.6 $ 19.59 1.2 $ 20.06 $ 30.01 to $ 45.00 0.9 4.0 $ 36.45 0.9 $ 36.45 $ 5.50 to $ 45.00 2.9 5.1 $ 24.19 2.2 $ 25.93 Restricted Stock Units RSUs entitle the holder to shares of common stock after a vesting period that generally ranges from one to three year s. The fair value of the awards is determined on the grant date based on the Company’s stock price. The following table summarizes the RSU activity (in millions, except per share data): Restricted Weighted Non-vested share units at June 30, 2021 11.3 $ 15.00 Forfeited ( 0.4 ) $ 14.84 Non-vested share units at September 30, 2021 10.9 $ 15.01 Non-vested share units at December 31, 2020 13.2 $ 13.62 Granted 3.8 $ 20.39 Vested and shares issued ( 5.0 ) $ 15.72 Forfeited ( 1.1 ) $ 13.78 Non-vested share units at September 30, 2021 10.9 $ 15.01 Performance Share Units PSUs are stock awards in which the number of shares ultimately received by the employee depends on either a market-based performance measure or an internal performance measure and the number of shares can vary from 0 % to 300 % depending on the achievement. Certain of CommScope's PSUs have a market condition performance measure based on stock price milestones as well as a service condition. The Company used a Monte Carlo simulation model to estimate the fair value of these PSUs at the date of grant. Key assumptions used in the model include the risk-free interest rate, which reflects the yield on zero-coupon U.S. treasury securities, and stock price volatility, which is derived based on the historical volatility of the Company’s stock. The following table presents the weighted average assumptions used to estimate the fair value of these awards granted during the nine months ended September 30, 2021. These awards were not granted during the three months ended September 30, 2021. Nine Months Ended Risk-free interest rate 0.4 % Expected volatility 56.0 % Weighted average fair value at grant date $ 11.21 During the three months ended September 30, 2021, the Company granted certain PSUs with an internal performance measure vesting at the end of three years. The fair value of these awards was determined on the date of grant based on the Company's stock price. The following table summarizes the PSU activity (in millions, except per share data): Performance Weighted Non-vested share units at June 30, 2021 2.2 $ 6.30 Granted 0.3 $ 18.97 Forfeited ( 0.1 ) $ 13.88 Non-vested share units at September 30, 2021 2.4 $ 8.02 Non-vested share units at December 31, 2020 1.5 $ 4.03 Granted 1.0 $ 14.48 Forfeited ( 0.1 ) $ 13.88 Non-vested share units at September 30, 2021 2.4 $ 8.02 |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for these interim periods are not necessarily indicative of the results of operations to be expected for any future period or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. In the second quarter of 2021, management shifted certain product lines from the Company’s Broadband Networks (Broadband) segment to its Home Networks (Home) segment to better align with how the business is being managed in light of the planned spin-off of the Home Networks business. All prior period amounts in these condensed consolidated financial statements have been recast to reflect these operating segment changes. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Annual Report). The significant accounting policies followed by the Company are set forth in Note 2 within the Company’s audited consolidated financial statements included in the 2020 Annual Report. There were no material changes in the Company’s significant accounting policies during the three or nine months ended September 30, 2021 . |
Concentrations of Risk and Related Party Transactions | Concentrations of Risk and Related Party Transactions No direct customer accounted for 10 % or more of the Company’s total net sales during the three or nine months ended September 30, 2021. Net sales to Comcast Corporation and affiliates (Comcast) accounted for 11 % of the Company’s total net sales during the three and nine months ended September 30, 2020. Other than Comcast, no other direct customer accounted for 10 % or more of the Company’s total net sales during the three or nine months ended September 30, 2020. As of September 30, 2021, no direct customer accounted for 10 % or more of the Company’s accounts receivable. The Company relies on sole suppliers or a limited group of suppliers for certain key components, subassemblies and modules and a limited group of contract manufacturers to manufacture a significant portion of its products. Any disruption or termination of these arrangements could have a material adverse impact on the Company’s results of operations. As of September 30, 2021 , funds affiliated with Carlyle Partners VII S1 Holdings, L.P. (Carlyle) owned 100 % of the Series A convertible preferred stock (the Convertible Preferred Stock), which was sold to Carlyle to fund a portion of the acquisition of ARRIS International plc (ARRIS) in 2019. See Note 9 for further discussion of the Convertible Preferred Stock. Other than transactions related to the Convertible Preferred Stock, there were no material related party transactions for the three or nine months ended September 30, 2021 |
Product Warranties | Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods depending upon the product, subject to the warranty and the terms of the individual agreements . The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Product warranty accrual, beginning of period $ 69.5 $ 55.9 $ 59.5 $ 61.0 Provision for warranty claims 9.7 10.3 33.0 20.1 Warranty claims paid ( 9.2 ) ( 8.4 ) ( 22.4 ) ( 22.8 ) Foreign exchange ( 0.2 ) 0.2 ( 0.3 ) ( 0.3 ) Product warranty accrual, end of period $ 69.8 $ 58.0 $ 69.8 $ 58.0 |
Commitments and Contingencies | Commitments and Contingencies The Company is party to certain intellectual property claims and periodically receives notices asserting that its products infringe on another party’s patents and other intellectual property rights. These claims and assertions, whether against the Company directly or against its customers, could require the Company to pay damages, royalties, stop offering the relevant products and/or cease other activities. The Company may also be called upon to indemnify certain customers for costs related to products sold to such customers. The outcome of these claims and notices is uncertain and a reasonable estimate of the loss from unfavorable outcomes in certain of these matters either cannot be determined or is estimated at the minimum amount of a range of estimates. The actual loss could be material and may vary significantly from our estimates. As of September 30, 2021 , the Company had a liability of $ 21.7 million recorded in accrued and other liabilities and noncurrent liabilities on the Condensed Consolidated Balance Sheets related to certain intellectual property assertions that have been settled or are in process of settlement. For the three and nine months ended September 30, 2021, the Company recorded charges to cost of sales in the Condensed Consolidated Statements of Operations of $ 5.0 million and $ 46.5 million, respectively, related to these intellectual property assertions. These charges are reflected in the results of the Broadband, Home and Venue and Campus Networks segments. The Company paid $ 51.0 million and $ 55.0 million during the three and nine months ended September 30, 2021, respectively, to settle intellectual property assertions. The Company is either a plaintiff or a defendant in certain other pending legal matters in the normal course of business. Management believes none of these other pending legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. |
Asset Impairments | Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. There were no indicators of goodwill impairment identified during the three months ended September 30, 2021. During the nine months ended September 30, 2021, the Company assessed goodwill for impairment due to a change in the composition of certain reporting units. The Company performed impairment testing immediately before and after the change and determined that no goodwill impairment existed. See Note 2 for further discussion. There were no indicators of goodwill impairment identified during the three months ended September 30, 2020, but during the nine months ended September 30, 2020, the Company recorded a $ 206.7 million goodwill impairment charge as a result of lower projected operating results for the Home Networks reporting unit in the Home segment. Property, plant and equipment, intangible assets and right of use assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are adjusted to estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment and are then measured at fair value if an impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three or nine months ended September 30, 2021 or 2020 . |
Income Taxes | Income Taxes For the three months ended September 30, 2021, the Company’s effective tax rate was 22.1 % and the Company recognized a tax benefit of $ 35.2 million on a pretax loss of $ 159.4 million. The Company’s tax benefit was higher than the statutory rate of 21 % due to favorable changes in uncertain tax positions. For the nine months ended September 30, 2021, the Company’s effective tax rate was 14.8 % and the Company recognized a tax benefit of $ 65.3 million on a pretax loss of $ 440.9 million. The Company’s tax benefit was lower than the statutory rate primarily due to the impact of $ 37.4 million in tax expense related to a foreign tax rate change. For the three months ended September 30, 2020, the Company’s effective tax rate was ( 8.7 )% and the Company recognized income tax expense of $ 9.3 million on a pretax loss of $ 107.0 million. The income tax expense on the Company’s pretax loss was driven by $ 19.2 million of tax expense related to a foreign tax rate change. For the nine months ended September 30, 2020, the Company’s effective tax rate was 5.9 % and the Company recognized a tax benefit of $ 37.2 million on a pretax loss of $ 634.5 million. The Company’s tax benefit in the nine months ended September 30, 2020 was impacted unfavorably primarily due to a goodwill impairment charge of $ 206.7 million, for which minimal tax benefits were recorded, $ 22.7 million of tax expense related to state valuation allowances and $ 19.2 million in income tax expense related to a foreign tax rate change. For both the three and nine months ended September 30, 2020, the Company’s tax rate was also impacted favorably by federal tax credits and unfavorably by U.S. anti-deferral provisions and foreign withholding taxes. Excess tax costs of $ 1.2 million and $ 9.0 million related to equity compensation awards also impacted the income taxes unfavorably for the three and nine months ended September 30, 2020, respectively. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) is computed by dividing net income (loss), less any dividends and deemed dividends related to the Convertible Preferred Stock, by the weighted average number of common shares outstanding during the period. The numerator in diluted EPS is based on the basic EPS numerator adjusted to add back any dividends and deemed dividends related to the Convertible Preferred Stock, subject to antidilution requirements. The denominator used in diluted EPS is based on the basic EPS computation plus the effect of potentially dilutive common shares related to the Convertible Preferred Stock and equity-based compensation plans, subject to antidilution requirements. For the three and nine months ended September 30, 2021, 11.9 million and 12.3 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because the effect was antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2021, 5.0 million and 5.2 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the three and nine months ended September 30, 2020, 18.9 million and 17.4 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because the effect was either antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2020, 4.7 million and 4.5 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For both the three and nine months ended September 30, 2021, 37.9 million of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were antidilutive. For the three and nine months ended September 30, 2020, 37.4 million and 36.9 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were antidilutive. These shares may have been considered dilutive if the Company had not been in a net loss position. The following table presents the basis for the EPS computations (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ ( 124.2 ) $ ( 116.3 ) $ ( 375.6 ) $ ( 597.3 ) Dividends on Series A convertible preferred stock ( 14.3 ) ( 14.1 ) ( 43.0 ) ( 41.8 ) Net loss attributable to common stockholders $ ( 138.5 ) $ ( 130.4 ) $ ( 418.6 ) $ ( 639.1 ) Denominator: Weighted average common shares outstanding - basic 204.2 196.9 203.3 195.9 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — — — — Weighted average common shares outstanding - diluted 204.2 196.9 203.3 195.9 Loss per share: Basic $ ( 0.68 ) $ ( 0.66 ) $ ( 2.06 ) $ ( 3.26 ) Diluted $ ( 0.68 ) $ ( 0.66 ) $ ( 2.06 ) $ ( 3.26 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted During the Nine Months Ended September 30, 2021 On January 1, 2021, the Company adopted Accounting Standards Update (ASU) No. 2020-01 , Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The new guidance is based on a consensus of the Emerging Issues Task Force and is expected to improve comparability in accounting for these transactions. The amendments in this guidance clarify the interaction of accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The impact of adopting this new guidance was not material to the consolidated financial statements. On January 1, 2021, the Company adopted ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance. The impact of adopting this new guidance was not material to the consolidated financial statements. Issued but Not Adopted In August 2020, the Financial Accounting Standards Board (FASB) issued ASU No. 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 . The new guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share, along with expanded disclosures. ASU No. 2020-06 is effective for the Company as of January 1, 2022 and early adoption is permitted beginning January 1, 2021. The Company is currently evaluating the impact of the new guidance on the consolidated financial statements. In March 2020 and January 2021, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope , respectively. Together, the ASUs provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The Company can elect to apply the amendments through December 31, 2022. The Company is currently evaluating the impact of this guidance on the consolidated financial statements |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Activity in Product Warranty Accrual, Included in Accrued and Other Liabilities and Other Noncurrent Liabilities | The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Product warranty accrual, beginning of period $ 69.5 $ 55.9 $ 59.5 $ 61.0 Provision for warranty claims 9.7 10.3 33.0 20.1 Warranty claims paid ( 9.2 ) ( 8.4 ) ( 22.4 ) ( 22.8 ) Foreign exchange ( 0.2 ) 0.2 ( 0.3 ) ( 0.3 ) Product warranty accrual, end of period $ 69.8 $ 58.0 $ 69.8 $ 58.0 |
Summary of EPS, Weighted Average Common Shares and Potential Common Shares Outstanding | The following table presents the basis for the EPS computations (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ ( 124.2 ) $ ( 116.3 ) $ ( 375.6 ) $ ( 597.3 ) Dividends on Series A convertible preferred stock ( 14.3 ) ( 14.1 ) ( 43.0 ) ( 41.8 ) Net loss attributable to common stockholders $ ( 138.5 ) $ ( 130.4 ) $ ( 418.6 ) $ ( 639.1 ) Denominator: Weighted average common shares outstanding - basic 204.2 196.9 203.3 195.9 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — — — — Weighted average common shares outstanding - diluted 204.2 196.9 203.3 195.9 Loss per share: Basic $ ( 0.68 ) $ ( 0.66 ) $ ( 2.06 ) $ ( 3.26 ) Diluted $ ( 0.68 ) $ ( 0.66 ) $ ( 2.06 ) $ ( 3.26 ) |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segment | The following table presents the activity in goodwill by reportable segment. December 31, 2020 Activity September 30, 2021 Goodwill Accumulated Impairment Losses Total Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total Broadband $ 3,369.7 $ ( 193.6 ) $ 3,176.1 $ ( 33.3 ) $ 3,336.4 $ ( 193.6 ) $ 3,142.8 OWN 669.1 ( 159.5 ) 509.6 ( 3.2 ) 665.9 ( 159.5 ) 506.4 VCN 1,642.0 ( 41.2 ) 1,600.8 ( 10.0 ) 1,632.0 ( 41.2 ) 1,590.8 Home 399.5 ( 399.5 ) — 13.7 413.2 ( 399.5 ) 13.7 Total $ 6,080.3 $ ( 793.8 ) $ 5,286.5 $ ( 32.8 ) $ 6,047.5 $ ( 793.8 ) $ 5,253.7 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Allowance for doubtful accounts, beginning of period $ 30.8 $ 43.4 $ 40.3 $ 35.4 Provision (benefit) 15.6 ( 1.1 ) 7.3 8.8 Write-offs ( 0.2 ) ( 0.3 ) ( 0.7 ) ( 3.0 ) Foreign exchange and other ( 0.6 ) 1.1 ( 1.3 ) 1.9 Allowance for doubtful accounts, end of period $ 45.6 $ 43.1 $ 45.6 $ 43.1 |
Summary of Balance Sheet Location and Amounts of Contract Assets and Liabilities from Contracts with Customers | The following table provides the balance sheet location and amounts of contract assets, or unbilled accounts receivable, and contract liabilities, or deferred revenue, from contracts with customers as of September 30, 2021 and December 31, 2020. Contract Balance Type Balance Sheet Location September 30, December 31, Unbilled accounts receivable Accounts receivable, less allowance for doubtful accounts $ 37.2 $ 21.9 Deferred revenue - current Accrued and other liabilities 108.2 90.0 Deferred revenue - noncurrent Other noncurrent liabilities 59.3 53.2 Total contract liabilities $ 167.5 $ 143.2 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Inventories | Inventories September 30, December 31, Raw materials $ 361.4 $ 280.2 Work in process 165.0 140.6 Finished goods 725.8 668.1 $ 1,252.2 $ 1,088.9 |
Accrued and Other Liabilities | Accrued and Other Liabilities September 30, December 31, Compensation and employee benefit liabilities $ 266.6 $ 277.9 Deferred revenue 108.2 90.0 Accrued interest 58.0 120.2 Product warranty accrual 54.7 45.8 Operating lease liabilities 51.3 62.4 Restructuring reserve 47.2 22.0 Patent claims and litigation settlements 13.6 25.7 Other 285.0 266.6 $ 884.6 $ 910.6 |
Operating Lease Information | Operating Lease Information Balance Sheet Location September 30, December 31, Right of use assets Other noncurrent assets $ 139.5 $ 159.3 Lease liabilities Accrued and other liabilities $ 51.3 $ 62.4 Lease liabilities Other noncurrent liabilities 109.2 119.1 Total lease liabilities $ 160.5 $ 181.5 |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | The following table presents changes in accumulated other comprehensive loss (AOCL), net of tax: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Foreign currency translation Balance at beginning of period $ ( 110.3 ) $ ( 227.7 ) $ ( 80.5 ) $ ( 162.7 ) Other comprehensive income (loss) ( 41.4 ) 63.7 ( 71.7 ) ( 1.3 ) Amounts reclassified from AOCL 0.5 — 1.0 — Balance at end of period $ ( 151.2 ) $ ( 164.0 ) $ ( 151.2 ) $ ( 164.0 ) Defined benefit plan activity Balance at beginning of period $ ( 35.8 ) $ ( 25.9 ) $ ( 36.4 ) $ ( 25.4 ) Amounts reclassified from AOCL 0.3 ( 0.1 ) 0.9 ( 0.6 ) Balance at end of period $ ( 35.5 ) $ ( 26.0 ) $ ( 35.5 ) $ ( 26.0 ) Hedging instruments Balance at beginning of period $ ( 35.1 ) $ ( 21.8 ) $ ( 39.0 ) $ ( 8.9 ) Other comprehensive income (loss) 4.3 ( 9.0 ) 8.2 ( 21.9 ) Balance at end of period $ ( 30.8 ) $ ( 30.8 ) $ ( 30.8 ) $ ( 30.8 ) Net AOCL at end of period $ ( 217.5 ) $ ( 220.8 ) $ ( 217.5 ) $ ( 220.8 ) |
Cash Flow Information | Cash Flow Information Nine Months Ended September 30, 2021 2020 Cash paid during the period for: Income taxes, net of refunds $ 64.3 $ 61.8 Interest 455.5 451.8 |
Financing (Tables)
Financing (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt | September 30, 2021 December 31, 2020 7.125 % senior notes due July 2028 $ 700.0 $ 700.0 5.00 % senior notes due March 2027 750.0 750.0 8.25 % senior notes due March 2027 1,000.0 1,000.0 6.00 % senior notes due June 2025 1,300.0 1,300.0 4.75 % senior secured notes due September 2029 1,250.0 — 6.00 % senior secured notes due March 2026 1,500.0 1,500.0 5.50 % senior secured notes due March 2024 — 1,250.0 Senior secured term loan due April 2026 3,136.0 3,160.0 Senior secured revolving credit facility — — Total principal amount of debt $ 9,636.0 $ 9,660.0 Less: Original issue discount, net of amortization ( 21.5 ) ( 24.8 ) Less: Debt issuance costs, net of amortization ( 101.5 ) ( 114.6 ) Less: Current portion ( 32.0 ) ( 32.0 ) Total long-term debt $ 9,481.0 $ 9,488.6 |
Scheduled Maturities of Long-Term Debt | The following table summarizes scheduled maturities of long-term debt as of September 30, 2021: Remainder 2022 2023 2024 2025 Thereafter Scheduled maturities of long-term debt $ 8.0 $ 32.0 $ 32.0 $ 32.0 $ 1,332.0 $ 8,200.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Debt Instruments, Interest Rate Derivatives and Foreign Currency Contracts | The carrying amounts, estimated fair values and valuation input levels of the Company’s debt instruments, interest rate derivatives and foreign currency contracts as of September 30, 2021 and December 31, 2020, are as follows: September 30, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value Valuation Assets: Foreign currency contracts $ 3.5 $ 3.5 $ 11.7 $ 11.7 Level 2 Liabilities: 7.125% senior notes due 2028 $ 700.0 $ 714.1 $ 700.0 $ 743.8 Level 2 5.00% senior notes due 2027 750.0 710.7 750.0 741.5 Level 2 8.25% senior notes due 2027 1,000.0 1,045.0 1,000.0 1,068.5 Level 2 6.00% senior notes due 2025 1,300.0 1,319.5 1,300.0 1,329.3 Level 2 4.75% senior secured notes due 2029 1,250.0 1,246.9 — — Level 2 6.00% senior secured notes due 2026 1,500.0 1,560.6 1,500.0 1,576.8 Level 2 5.50% senior secured notes due 2024 — — 1,250.0 1,285.9 Level 2 Senior secured term loan due 2026 3,136.0 3,126.2 3,160.0 3,156.1 Level 2 Foreign currency contracts 1.6 1.6 24.4 24.4 Level 2 Interest rate swap contracts 18.2 18.2 29.9 29.9 Level 2 |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment | The following table provides summary financial information by reportable segment: September 30, 2021 December 31, 2020 Identifiable segment-related assets: Broadband $ 6,315.1 $ 6,441.1 OWN 1,341.9 1,264.4 VCN 3,311.7 3,352.3 Home 1,438.7 1,709.0 Total identifiable segment-related assets 12,407.4 12,766.8 Reconciliation to total assets: Cash and cash equivalents 411.5 521.9 Deferred income tax assets 433.1 288.1 Total assets $ 13,252.0 $ 13,576.8 |
Summary of Net Sales, Adjusted EBITDA, Depreciation Expense and Additions to PP&E by Reportable Segment | The following table provides net sales, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net sales: Broadband $ 779.7 $ 811.0 $ 2,366.4 $ 2,069.8 OWN 355.6 271.8 1,036.2 949.0 VCN 554.9 511.8 1,587.4 1,459.7 Home 415.1 573.5 1,372.6 1,825.6 Consolidated net sales $ 2,105.3 $ 2,168.1 $ 6,362.6 $ 6,304.1 Segment adjusted EBITDA: Broadband $ 158.1 $ 202.3 $ 488.3 $ 414.9 OWN 60.5 53.6 214.4 218.4 VCN 56.0 55.6 135.1 131.6 Home ( 15.5 ) 30.4 18.6 88.1 Total segment adjusted EBITDA 259.1 341.9 856.4 853.0 Amortization of intangible assets ( 153.0 ) ( 158.1 ) ( 461.9 ) ( 473.5 ) Restructuring (costs) credits, net 3.1 ( 40.3 ) ( 100.2 ) ( 83.6 ) Equity-based compensation ( 21.0 ) ( 34.0 ) ( 61.0 ) ( 90.0 ) Asset impairments — — — ( 206.7 ) Transaction, transformation and integration costs ( 26.2 ) ( 4.8 ) ( 62.7 ) ( 17.8 ) Acquisition accounting adjustments ( 2.8 ) ( 5.1 ) ( 9.0 ) ( 15.8 ) Patent claims and litigation settlements ( 5.0 ) 1.4 ( 46.5 ) ( 11.4 ) Executive severance — ( 6.3 ) — ( 6.3 ) Depreciation ( 33.2 ) ( 38.9 ) ( 103.6 ) ( 118.7 ) Consolidated operating income (loss) $ 21.0 $ 55.8 $ 11.5 $ ( 170.8 ) Depreciation expense: Broadband $ 14.1 $ 14.6 $ 42.8 $ 44.2 OWN 3.8 4.1 11.4 12.7 VCN 10.3 11.7 31.8 34.9 Home 5.0 8.5 17.6 26.9 Consolidated depreciation expense $ 33.2 $ 38.9 $ 103.6 $ 118.7 Additions to property, plant and equipment: Broadband $ 22.5 $ 9.0 $ 55.3 $ 27.1 OWN 2.7 3.6 7.6 10.3 VCN 8.0 7.4 26.1 20.3 Home 2.8 5.8 7.2 15.8 Consolidated additions to property, plant and equipment $ 36.0 $ 25.8 $ 96.2 $ 73.5 |
Summary of Net Sales by Reportable Segment, Disaggregated Based on Geographic Region | The following table presents net sales by reportable segment, disaggregated based on geographic region: Three Months Ended September 30, Broadband OWN VCN Home Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Geographic Region: United States $ 477.4 $ 545.4 $ 227.6 $ 163.2 $ 300.8 $ 277.9 $ 196.0 $ 331.7 $ 1,201.8 $ 1,318.2 Europe, Middle East 127.7 109.6 67.4 61.5 116.2 109.9 107.5 126.3 418.8 407.3 Asia Pacific 60.9 79.8 35.0 22.6 108.4 103.9 24.1 12.8 228.4 219.1 Caribbean and Latin 87.2 56.3 13.2 21.4 23.4 13.3 32.4 58.9 156.2 149.9 Canada 26.5 19.9 12.4 3.1 6.1 6.8 55.1 43.8 100.1 73.6 Consolidated net sales $ 779.7 $ 811.0 $ 355.6 $ 271.8 $ 554.9 $ 511.8 $ 415.1 $ 573.5 $ 2,105.3 $ 2,168.1 Nine Months Ended September 30, Broadband OWN VCN Home Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Geographic Region: United States $ 1,495.1 $ 1,334.0 $ 649.1 $ 645.6 $ 816.3 $ 808.1 $ 687.4 $ 1,104.6 $ 3,647.9 $ 3,892.3 Europe, Middle East 343.0 310.0 195.3 185.0 345.0 310.6 330.0 355.8 1,213.3 1,161.4 Asia Pacific 180.6 193.6 111.6 62.1 340.5 279.9 65.2 62.9 697.9 598.5 Caribbean and Latin 278.3 162.6 32.8 43.9 57.8 39.2 169.7 186.6 538.6 432.3 Canada 69.4 69.6 47.4 12.4 27.8 21.9 120.3 115.7 264.9 219.6 Consolidated net sales $ 2,366.4 $ 2,069.8 $ 1,036.2 $ 949.0 $ 1,587.4 $ 1,459.7 $ 1,372.6 $ 1,825.6 $ 6,362.6 $ 6,304.1 |
Restructuring Costs (Credits)_2
Restructuring Costs (Credits), Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Company's Net Pretax Restructuring Charges, Included in Restructuring Costs | The Company’s net pretax restructuring activity included in restructuring costs (credits), net on the Condensed Consolidated Statements of Operations, by segment, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Broadband $ ( 3.6 ) $ 11.7 $ 69.6 $ 16.9 OWN 0.4 5.9 6.6 9.8 VCN ( 0.1 ) 18.9 16.0 29.0 Home 0.2 3.8 8.0 27.9 Total $ ( 3.1 ) $ 40.3 $ 100.2 $ 83.6 |
Restructuring Liabilities Included in Company's Condensed Consolidated Balance Sheets | Restructuring liabilities were included in the Company’s Condensed Consolidated Balance Sheets as follows: September 30, December 31, Accrued and other liabilities $ 47.2 $ 22.0 Other noncurrent liabilities 33.9 4.0 Total restructuring liabilities $ 81.1 $ 26.0 |
CommScope NEXT Restructuring Plan [Member] | |
Activity within Liability Established for Restructuring Actions, Included in Other Accrued Liabilities | The activity within the liability established for CommScope NEXT restructuring actions was as follows: Employee- Other Total Balance at June 30, 2021 $ 68.4 $ — $ 68.4 Expense reversal, net ( 5.1 ) — ( 5.1 ) Cash paid ( 4.9 ) — ( 4.9 ) Balance at September 30, 2021 $ 58.4 $ — $ 58.4 Balance at December 31, 2020 $ — $ — $ — Additional expense, net 83.1 4.0 87.1 Cash paid ( 24.7 ) — ( 24.7 ) Non-cash items — ( 4.0 ) ( 4.0 ) Balance at September 30, 2021 $ 58.4 $ — $ 58.4 |
ARRIS Integration Restructuring Plan [Member] | |
Activity within Liability Established for Restructuring Actions, Included in Other Accrued Liabilities | The activity within the liability established for the ARRIS integration restructuring actions was as follows: Employee- Other Total Balance at June 30, 2021 $ 22.6 $ 0.2 $ 22.8 Additional expense, net 1.3 0.7 2.0 Cash paid ( 1.6 ) ( 0.3 ) ( 1.9 ) Non-cash items — ( 0.6 ) ( 0.6 ) Balance at September 30, 2021 $ 22.3 $ — $ 22.3 Balance at December 31, 2020 $ 24.4 $ 0.8 $ 25.2 Additional expense, net 10.5 2.6 13.1 Cash paid ( 12.6 ) ( 1.3 ) ( 13.9 ) Non-cash items — ( 2.1 ) ( 2.1 ) Balance at September 30, 2021 $ 22.3 $ — $ 22.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of the Equity-Based Compensation Expense Included in the Statements of Operations | The following table shows a summary of the equity-based compensation expense included in the Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Selling, general and administrative $ 10.8 $ 18.6 $ 31.2 $ 49.3 Cost of sales 3.5 5.5 10.0 14.5 Research and development 6.7 9.9 19.8 26.2 Total equity-based compensation expense $ 21.0 $ 34.0 $ 61.0 $ 90.0 |
Summary of Stock Option Activity | The following table summarizes the stock option activity (in millions, except per share data and years): Shares Weighted Weighted Aggregate Options outstanding at June 30, 2021 3.2 $ 23.95 5.8 $ 6.5 Exercised ( 0.1 ) $ 18.60 Forfeited ( 0.1 ) $ 18.60 Expired ( 0.1 ) $ 27.82 Options outstanding at September 30, 2021 2.9 $ 24.19 5.1 $ 0.5 Options outstanding at December 31, 2020 6.2 $ 19.86 6.6 $ 5.6 Exercised ( 0.8 ) $ 7.18 Forfeited ( 2.4 ) $ 18.40 Expired ( 0.1 ) $ 25.88 Options outstanding at September 30, 2021 2.9 $ 24.19 5.1 $ 0.5 Options vested at September 30, 2021 2.2 $ 25.93 4.3 $ 0.4 Options unvested at September 30, 2021 0.7 $ 18.14 7.6 $ 0.1 |
Summary of Exercise Price | The exercise prices of outstanding options at September 30, 2021 were in the following ranges (in millions, except per share data and years): Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Weighted Shares Weighted $ 5.50 to $ 18.50 0.1 4.6 $ 10.15 0.1 $ 9.20 $ 18.51 to $ 30.00 1.9 5.6 $ 19.59 1.2 $ 20.06 $ 30.01 to $ 45.00 0.9 4.0 $ 36.45 0.9 $ 36.45 $ 5.50 to $ 45.00 2.9 5.1 $ 24.19 2.2 $ 25.93 |
Summary of RSU Activity | The following table summarizes the RSU activity (in millions, except per share data): Restricted Weighted Non-vested share units at June 30, 2021 11.3 $ 15.00 Forfeited ( 0.4 ) $ 14.84 Non-vested share units at September 30, 2021 10.9 $ 15.01 Non-vested share units at December 31, 2020 13.2 $ 13.62 Granted 3.8 $ 20.39 Vested and shares issued ( 5.0 ) $ 15.72 Forfeited ( 1.1 ) $ 13.78 Non-vested share units at September 30, 2021 10.9 $ 15.01 |
Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option | The following table presents the weighted average assumptions used to estimate the fair value of these awards granted during the nine months ended September 30, 2021. These awards were not granted during the three months ended September 30, 2021. Nine Months Ended Risk-free interest rate 0.4 % Expected volatility 56.0 % Weighted average fair value at grant date $ 11.21 |
Summary of PSU Activity | The following table summarizes the PSU activity (in millions, except per share data): Performance Weighted Non-vested share units at June 30, 2021 2.2 $ 6.30 Granted 0.3 $ 18.97 Forfeited ( 0.1 ) $ 13.88 Non-vested share units at September 30, 2021 2.4 $ 8.02 Non-vested share units at December 31, 2020 1.5 $ 4.03 Granted 1.0 $ 14.48 Forfeited ( 0.1 ) $ 13.88 Non-vested share units at September 30, 2021 2.4 $ 8.02 |
Background and Basis of Prese_4
Background and Basis of Presentation - Additional Information (Detail) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)Customershares | Sep. 30, 2020USD ($)Customershares | Sep. 30, 2021USD ($)Customershares | Sep. 30, 2020USD ($)Customershares | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Percentage of convertible preferred stock owned | 100.00% | 100.00% | ||
Related party transactions | $ 0 | $ 0 | ||
Product warranty term | These product warranties extend over various periods depending upon the product, subject to the warranty and the terms of the individual agreements | |||
Loss contingency liability amount | 21,700,000 | $ 21,700,000 | ||
Payments to settle intellectual property assertions | 51,000,000 | 55,000,000 | ||
Intangible asset impairment charges, excluding goodwill | 0 | $ 0 | 0 | $ 0 |
Other long-Lived assets impairments | 0 | 0 | 0 | 0 |
Impairment of goodwill | $ 0 | $ 0 | $ 0 | $ 206,700,000 |
Effective income tax rate | 22.10% | (8.70%) | 14.80% | 5.90% |
Income tax (expense) benefit | $ 35,200,000 | $ (9,300,000) | $ 65,300,000 | $ 37,200,000 |
Pre-tax net loss for the period | $ 159,400,000 | 107,000,000 | 440,900,000 | 634,500,000 |
Tax expense related to a foreign tax rate change | 19,200,000 | $ 37,400,000 | 19,200,000 | |
Statutory tax rate | 21.00% | |||
Tax expense related to goodwill impairment charges | 206,700,000 | |||
Tax expense related to state valuation allowance | 22,700,000 | |||
Impact of recent accounting pronouncements | $ 1,200,000 | $ 9,000,000 | ||
Convertible Preferred Stock [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Dilutive effect of equity-based awards | shares | 37.9 | 37.4 | 37.9 | 36.9 |
Stock Compensation Plan [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Amount of outstanding equity based awards not included in computation of diluted EPS | shares | 11.9 | 18.9 | 12.3 | 17.4 |
Dilutive effect of equity-based awards | shares | 5 | 4.7 | 5.2 | 4.5 |
Home and VCN [Member] | Cost of Sales [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Loss contingency portion recorded | $ 5,000,000 | $ 46,500,000 | ||
Customer Concentration Risk [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Direct customer accounted for 10% or more of the Company's accounts receivable and total net sales | Customer | 0 | 0 | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Direct customer accounted for 10% or more of the Company's accounts receivable and total net sales | Customer | 0 | 0 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Direct customer accounted for 10% or more of the Company's accounts receivable and total net sales | Customer | 0 | |||
Customer Concentration Risk [Member] | Maximum [Member] | Sales Revenue, Net [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Customer Concentration Risk [Member] | Maximum [Member] | Sales Revenue, Net [Member] | Comcast Corporation [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Concentration risk percentage | 11.00% | 11.00% | ||
Customer Concentration Risk [Member] | Maximum [Member] | Accounts Receivable [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Background and Basis of Prese_5
Background and Basis of Presentation - Summary of Activity in Product Warranty Accrual, Included in Accrued and Other Liabilities and Other Noncurrent Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Product warranty accrual, beginning of period | $ 69.5 | $ 55.9 | $ 59.5 | $ 61 |
Provision for warranty claims | 9.7 | 10.3 | 33 | 20.1 |
Warranty claims paid | (9.2) | (8.4) | (22.4) | (22.8) |
Foreign exchange | (0.2) | 0.2 | (0.3) | (0.3) |
Product warranty accrual, end of period | $ 69.8 | $ 58 | $ 69.8 | $ 58 |
Background and Basis of Prese_6
Background and Basis of Presentation - Summary of EPS, Weighted Average Common Shares and Potential Common Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net loss | $ (124.2) | $ (116.3) | $ (375.6) | $ (597.3) |
Dividends on Series A convertible preferred stock | (14.3) | (14.1) | (43) | (41.8) |
Net loss attributable to common stockholders | $ (138.5) | $ (130.4) | $ (418.6) | $ (639.1) |
Denominator: | ||||
Weighted average common shares outstanding - basic | 204.2 | 196.9 | 203.3 | 195.9 |
Weighted average common shares outstanding - diluted | 204.2 | 196.9 | 203.3 | 195.9 |
Loss per share: | ||||
Basic | $ (0.68) | $ (0.66) | $ (2.06) | $ (3.26) |
Diluted | $ (0.68) | $ (0.66) | $ (2.06) | $ (3.26) |
Goodwill - Goodwill by Reportab
Goodwill - Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | $ 6,047.5 | $ 6,080.3 |
Accumulated impairment charges | (793.8) | (793.8) |
Goodwill | 5,253.7 | 5,286.5 |
Foreign exchange and other | (32.8) | |
Goodwill, gross, Ending balance | 6,047.5 | |
Accumulated impairment charges | (793.8) | |
Goodwill, net | 5,253.7 | |
Broadband [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | 3,336.4 | 3,369.7 |
Accumulated impairment charges | (193.6) | (193.6) |
Goodwill | 3,142.8 | 3,176.1 |
Foreign exchange and other | (33.3) | |
Goodwill, gross, Ending balance | 3,336.4 | |
Accumulated impairment charges | (193.6) | |
Goodwill, net | 3,142.8 | |
OWN [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | 665.9 | 669.1 |
Accumulated impairment charges | (159.5) | (159.5) |
Goodwill | 506.4 | 509.6 |
Foreign exchange and other | (3.2) | |
Goodwill, gross, Ending balance | 665.9 | |
Accumulated impairment charges | (159.5) | |
Goodwill, net | 506.4 | |
VCN [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | 1,632 | 1,642 |
Accumulated impairment charges | (41.2) | (41.2) |
Goodwill | 1,590.8 | 1,600.8 |
Foreign exchange and other | (10) | |
Goodwill, gross, Ending balance | 1,632 | |
Accumulated impairment charges | (41.2) | |
Goodwill, net | 1,590.8 | |
Home [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | 413.2 | 399.5 |
Accumulated impairment charges | (399.5) | (399.5) |
Goodwill | 13.7 | |
Foreign exchange and other | 13.7 | |
Goodwill, gross, Ending balance | 413.2 | |
Accumulated impairment charges | (399.5) | |
Goodwill, net | $ 13.7 |
Goodwill -Additional Informatio
Goodwill -Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill | $ 5,253.7 | $ 5,286.5 |
Home [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Change in Goodwill Allocation, Description | This changed the composition of the Company’s reporting units which resulted in the reallocation of $13.7 million of goodwill from the Network and Cloud reporting unit to the Home Networks reporting unit | |
Goodwill | $ 13.7 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts Notes And Loans Receivable Classified [Abstract] | ||||
Allowance for doubtful accounts, beginning of period | $ 30.8 | $ 43.4 | $ 40.3 | $ 35.4 |
Provision (benefit) | 15.6 | (1.1) | 7.3 | 8.8 |
Write-offs | (0.2) | (0.3) | (0.7) | (3) |
Foreign exchange and other | (0.6) | 1.1 | (1.3) | 1.9 |
Allowance for doubtful accounts, end of period | $ 45.6 | $ 43.1 | $ 45.6 | $ 43.1 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Summary of Balance Sheet Location and Amounts of Contract Assets and Liabilities from Contracts with Customers (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - current | $ 108.2 | $ 90 |
Total contract liabilities | 167.5 | 143.2 |
Accounts Receivable, Less Allowance for Doubtful Accounts [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Unbilled accounts receivable | 37.2 | 21.9 |
Accrued and Other Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - current | 108.2 | 90 |
Other Noncurrent Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - noncurrent | $ 59.3 | $ 53.2 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | ||
Contract with Customer, Liability | $ 17.5 | $ 71.2 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 361.4 | $ 280.2 |
Work in process | 165 | 140.6 |
Finished goods | 725.8 | 668.1 |
Inventories, net | $ 1,252.2 | $ 1,088.9 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Accrued and Other Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued and Other Liabilities [Abstract] | ||
Compensation and employee benefit liabilities | $ 266.6 | $ 277.9 |
Deferred revenue | 108.2 | 90 |
Accrued interest | 58 | 120.2 |
Product warranty accrual | 54.7 | 45.8 |
Operating lease liabilities | 51.3 | 62.4 |
Restructuring reserve | 47.2 | 22 |
Patent claims and litigation settlements | 13.6 | 25.7 |
Other | 285 | 266.6 |
Accrued and other liabilities | $ 884.6 | $ 910.6 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Operating Lease Information (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Fair Value of Assets (Liability), Right of use assets | $ 139.5 | $ 159.3 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Noncurrent Assets [Member] | Other Noncurrent Assets [Member] |
Fair Value of Assets (Liability), Total lease liabilities | $ 51.3 | $ 62.4 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and Other Liabilities Current [Member] | Accrued and Other Liabilities Current [Member] |
Fair Value of Assets (Liability), Total lease liabilities | $ 109.2 | $ 119.1 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Noncurrent Liabilities [Member] | Other Noncurrent Liabilities [Member] |
Fair Value of Assets (Liability), Total lease liabilities | $ 160.5 | $ 181.5 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Changes in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 355 | |||
Ending balance | $ (83.4) | $ 254.1 | (83.4) | $ 254.1 |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (110.3) | (227.7) | (80.5) | (162.7) |
Other comprehensive income (loss) | (41.4) | 63.7 | (71.7) | (1.3) |
Amounts reclassified from AOCL | 0.5 | 1 | ||
Ending balance | (151.2) | (164) | (151.2) | (164) |
Defined Benefit Plan Activity [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (35.8) | (25.9) | (36.4) | (25.4) |
Amounts reclassified from AOCL | 0.3 | (0.1) | 0.9 | (0.6) |
Ending balance | (35.5) | (26) | (35.5) | (26) |
Hedging Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (35.1) | (21.8) | (39) | (8.9) |
Other comprehensive income (loss) | 4.3 | (9) | 8.2 | (21.9) |
Ending balance | (30.8) | (30.8) | (30.8) | (30.8) |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (181.2) | (275.4) | (155.9) | (197) |
Ending balance | $ (217.5) | $ (220.8) | $ (217.5) | $ (220.8) |
Supplemental Financial Statem_7
Supplemental Financial Statement Information - Cash Flow Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 64.3 | $ 61.8 |
Interest | $ 455.5 | $ 451.8 |
Financing - Summary of Debt (De
Financing - Summary of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Aug. 23, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total principal amount of debt | $ 9,636 | $ 9,660 | |
Less: Original issue discount, net of amortization | (21.5) | (24.8) | |
Less: Debt issuance costs, net of amortization | (101.5) | (114.6) | |
Less: Current portion | (32) | (32) | |
Total long-term debt | 9,481 | 9,488.6 | |
7.125% Senior Notes Due July 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 700 | 700 | |
5.00% Senior Notes Due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 750 | 750 | |
8.25% Senior Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 1,000 | 1,000 | |
6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 1,300 | 1,300 | |
4.75% Senior Secured Notes Due September 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 1,250 | $ 1,250 | |
6.00% Senior Secured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 1,500 | 1,500 | |
5.50% Senior Secured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 1,250 | ||
Senior Secured Term Loan Due April 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | $ 3,136 | $ 3,160 |
Financing - Summary of Debt (Pa
Financing - Summary of Debt (Parenthetical) (Detail) | Aug. 23, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
7.125% Senior Notes Due July 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2028-07 | ||
Interest rate | 7.125% | 7.125% | |
5.00% Senior Notes Due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2027-03 | ||
Interest rate | 5.00% | 5.00% | |
8.25% Senior Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2027-03 | ||
Interest rate | 8.25% | 8.25% | |
6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2025-06 | ||
Interest rate | 6.00% | 6.00% | |
4.75% Senior Secured Notes Due September 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2029-09 | 2029-09 | |
Interest rate | 4.75% | 4.75% | 4.75% |
6.00% Senior Secured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2026-03 | ||
Interest rate | 6.00% | 6.00% | |
5.50% Senior Secured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2024-03 | ||
Interest rate | 5.50% | 5.50% | |
Senior Secured Term Loan Due April 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2026-04 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) $ in Millions | Aug. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Current portion of long term debt | $ 32 | $ 32 | $ 32 | |||
Total assets | 13,252 | 13,252 | 13,576.8 | |||
Total liabilities | 12,293.6 | 12,293.6 | $ 12,180 | |||
Net sales | $ 2,105.3 | $ 2,168.1 | $ 6,362.6 | $ 6,304.1 | ||
Weighted average effective interest rate | 5.74% | 5.74% | 5.86% | |||
Non Guarantor Subsidiaries Concentration Risk [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total assets | $ 3,205 | $ 3,205 | $ 3,488 | |||
Total liabilities | 1,021 | 1,021 | $ 956 | |||
Net sales | 695 | $ 637 | 1,990 | $ 1,834 | ||
Asset Based Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior secured revolving credit facility | 0 | 0 | ||||
Line of credit facility, remaining borrowing capacity | $ 686.4 | $ 686.4 | ||||
4.75% Senior Secured Notes Due September 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||
Maturity month and year | 2029-09 | 2029-09 | ||||
Senior secured notes | $ 1,250 | $ 1,250 | $ 1,250 | |||
Maturity year | 2029 | 2029 | ||||
Frequency of periodic payment | semi-annually | |||||
Date of first required payment | Mar. 1, 2022 | |||||
Maturity date | Sep. 1, 2029 | |||||
Percentage of redemption price | 104.75% | |||||
Other Expenses | $ 11.8 | $ 11.8 | ||||
5.50% Senior Secured Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.50% | 5.50% | 5.50% | |||
Maturity month and year | 2024-03 | |||||
Senior secured notes | $ 1,250 | |||||
2026 Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Scheduled amortization payments | $ 8 | $ 24 | ||||
Current portion of long term debt | $ 0 | $ 0 | ||||
Senior Notes [Member] | 4.75% Senior Secured Notes Due September 2029 [Member] | Redemption Under Certain Change Circumstances [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of principal amount of debt redeemed | 40.00% | |||||
Senior Secured Notes [Member] | 4.75% Senior Secured Notes Due September 2029 [Member] | Redemption Under Certain Change of Control Events [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of redemption price | 101.00% | |||||
Senior Secured Notes [Member] | 4.75% Senior Secured Notes Due September 2029 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of redemption price | 100.00% | |||||
Senior Secured Notes [Member] | 4.75% Senior Secured Notes Due September 2029 [Member] | Debt Instrument, Redemption, Period Three | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of redemption price | 103.00% | |||||
Percentage of principal amount of debt redeemed | 10.00% | |||||
Senior Secured Notes [Member] | 5.50% Senior Secured Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.50% | 5.50% | ||||
Maturity year | 2024 | |||||
Debt instrument redemption charges | $ 34.4 | $ 34.4 | ||||
Debt issuance cost Write-Off | $ 9.9 | $ 9.9 | ||||
Non-US [Member] | Assets, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Concentration risk percentage | 24.00% | 26.00% | ||||
Non-US [Member] | Liabilities, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Concentration risk percentage | 8.00% | 8.00% | ||||
Non-US [Member] | Sales Revenue, Net [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Concentration risk percentage | 33.00% | 29.00% | 31.00% | 29.00% |
Financing - Scheduled Maturitie
Financing - Scheduled Maturities of Long- Term Debt (Detail) $ in Millions | Sep. 30, 2021USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 8 |
2022 | 32 |
2023 | 32 |
2024 | 32 |
2025 | 1,332 |
Thereafter | $ 8,200 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Debt Instruments, Interest Rate Derivatives and Foreign Currency Contracts (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | $ 1.6 | $ 24.4 |
Interest rate swap contracts | 18.2 | 29.9 |
Carrying Amount [Member] | Assets [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 3.5 | 11.7 |
Fair Value [Member] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 1.6 | 24.4 |
Interest rate swap contracts | 18.2 | 29.9 |
Fair Value [Member] | Assets [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 3.5 | 11.7 |
7.125% Senior Notes Due 2028 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 700 | 700 |
7.125% Senior Notes Due 2028 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 714.1 | 743.8 |
5.00% Senior Notes Due 2027 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 750 | 750 |
5.00% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 750 | 750 |
5.00% Senior Notes Due 2027 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 710.7 | 741.5 |
8.25% Senior Notes Due 2027 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,045 | 1,068.5 |
6.00% Senior Notes Due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,300 | 1,300 |
6.00% Senior Notes Due 2025 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,300 | 1,300 |
6.00% Senior Notes Due 2025 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,319.5 | 1,329.3 |
6.00% Senior Secured Notes Due 2026 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,500 | 1,500 |
6.00% Senior Secured Notes Due 2026 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,560.6 | 1,576.8 |
5.50% Senior Secured Notes Due 2024 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,250 | |
5.50% Senior Secured Notes Due 2024 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,285.9 | |
4.75% Senior Secured Notes Due 2029 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,250 | |
4.75% Senior Secured Notes Due 2029 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,246.9 | |
Senior Secured Term Loan Due 2026 (Member) | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 3,136 | 3,160 |
Senior Secured Term Loan Due 2026 (Member) | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | $ 3,126.2 | $ 3,156.1 |
Segments and Geographic Infor_3
Segments and Geographic Information - Summary of Financial Information by Reportable Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 13,252 | $ 13,576.8 | ||
Cash and cash equivalents | 411.5 | 521.9 | $ 582.8 | $ 598.2 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 12,407.4 | 12,766.8 | ||
Operating Segments | Broadband [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 6,315.1 | 6,441.1 | ||
Operating Segments | OWN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,341.9 | 1,264.4 | ||
Operating Segments | VCN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 3,311.7 | 3,352.3 | ||
Operating Segments | Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,438.7 | 1,709 | ||
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 411.5 | 521.9 | ||
Deferred income tax assets | $ 433.1 | $ 288.1 |
Segments and Geographic Infor_4
Segments and Geographic Information - Summary of Net Sales, Adjusted EBITDA, Depreciation Expense and Additions to PP&E by Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,105.3 | $ 2,168.1 | $ 6,362.6 | $ 6,304.1 |
Total segment adjusted EBITDA | 259.1 | 341.9 | 856.4 | 853 |
Amortization of intangible assets | (153) | (158.1) | (461.9) | (473.5) |
Restructuring (costs) credits, net | 3.1 | (40.3) | (100.2) | (83.6) |
Equity-based compensation | (21) | (34) | (61) | (90) |
Asset impairments | 0 | 0 | 0 | (206.7) |
Transaction, transformation and integration costs | (26.2) | (4.8) | (62.7) | (17.8) |
Acquisition accounting adjustments | (2.8) | (5.1) | (9) | (15.8) |
Patent claims and litigation settlements | (5) | (1.4) | (46.5) | (11.4) |
Executive severance | (6.3) | (6.3) | ||
Depreciation | (33.2) | (38.9) | (103.6) | (118.7) |
Consolidated operating loss | 21 | 55.8 | 11.5 | (170.8) |
Additions to property, plant and equipment | 36 | 25.8 | 96.2 | 73.5 |
Broadband [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 779.7 | 811 | 2,366.4 | 2,069.8 |
Total segment adjusted EBITDA | 158.1 | 202.3 | 488.3 | 414.9 |
Depreciation | 14.1 | 14.6 | 42.8 | 44.2 |
Additions to property, plant and equipment | 22.5 | 9 | 55.3 | 27.1 |
OWN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 355.6 | 271.8 | 1,036.2 | 949 |
Total segment adjusted EBITDA | 60.5 | 53.6 | 214.4 | 218.4 |
Depreciation | 3.8 | 4.1 | 11.4 | 12.7 |
Additions to property, plant and equipment | 2.7 | 3.6 | 7.6 | 10.3 |
VCN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 554.9 | 511.8 | 1,587.4 | 1,459.7 |
Total segment adjusted EBITDA | 56 | 55.6 | 135.1 | 131.6 |
Depreciation | 10.3 | 11.7 | 31.8 | 34.9 |
Additions to property, plant and equipment | 8 | 7.4 | 26.1 | 20.3 |
Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 415.1 | 573.5 | 1,372.6 | 1,825.6 |
Total segment adjusted EBITDA | (15.5) | 30.4 | 18.6 | 88.1 |
Depreciation | 5 | 8.5 | 17.6 | 26.9 |
Additions to property, plant and equipment | $ 2.8 | $ 5.8 | $ 7.2 | $ 15.8 |
Segments and Geographic Infor_5
Segments and Geographic Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Non-US [Member] | Sales Revenue, Net [Member] | Customers Located Outside of the U.S [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 42.90% | 39.20% | 42.70% | 38.30% |
Segments and Geographic Infor_6
Segments and Geographic Information - Summary of Net Sales by Reportable Segment, Disaggregated Based on Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 2,105.3 | $ 2,168.1 | $ 6,362.6 | $ 6,304.1 |
Broadband [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 779.7 | 811 | 2,366.4 | 2,069.8 |
OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 355.6 | 271.8 | 1,036.2 | 949 |
VCN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 554.9 | 511.8 | 1,587.4 | 1,459.7 |
Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 415.1 | 573.5 | 1,372.6 | 1,825.6 |
Caribbean and Latin America (CALA) [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 156.2 | 149.9 | 538.6 | 432.3 |
Caribbean and Latin America (CALA) [Member] | Broadband [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 87.2 | 56.3 | 278.3 | 162.6 |
Caribbean and Latin America (CALA) [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 13.2 | 21.4 | 32.8 | 43.9 |
Caribbean and Latin America (CALA) [Member] | VCN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 23.4 | 13.3 | 57.8 | 39.2 |
Caribbean and Latin America (CALA) [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 32.4 | 58.9 | 169.7 | 186.6 |
Canada [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 100.1 | 73.6 | 264.9 | 219.6 |
Canada [Member] | Broadband [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 26.5 | 19.9 | 69.4 | 69.6 |
Canada [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 12.4 | 3.1 | 47.4 | 12.4 |
Canada [Member] | VCN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 6.1 | 6.8 | 27.8 | 21.9 |
Canada [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 55.1 | 43.8 | 120.3 | 115.7 |
United States [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 1,201.8 | 1,318.2 | 3,647.9 | 3,892.3 |
United States [Member] | Broadband [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 477.4 | 545.4 | 1,495.1 | 1,334 |
United States [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 227.6 | 163.2 | 649.1 | 645.6 |
United States [Member] | VCN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 300.8 | 277.9 | 816.3 | 808.1 |
United States [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 196 | 331.7 | 687.4 | 1,104.6 |
Europe, Middle East and Africa (EMEA) [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 418.8 | 407.3 | 1,213.3 | 1,161.4 |
Europe, Middle East and Africa (EMEA) [Member] | Broadband [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 127.7 | 109.6 | 343 | 310 |
Europe, Middle East and Africa (EMEA) [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 67.4 | 61.5 | 195.3 | 185 |
Europe, Middle East and Africa (EMEA) [Member] | VCN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 116.2 | 109.9 | 345 | 310.6 |
Europe, Middle East and Africa (EMEA) [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 107.5 | 126.3 | 330 | 355.8 |
Asia Pacific (APAC) [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 228.4 | 219.1 | 697.9 | 598.5 |
Asia Pacific (APAC) [Member] | Broadband [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 60.9 | 79.8 | 180.6 | 193.6 |
Asia Pacific (APAC) [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 35 | 22.6 | 111.6 | 62.1 |
Asia Pacific (APAC) [Member] | VCN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 108.4 | 103.9 | 340.5 | 279.9 |
Asia Pacific (APAC) [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 24.1 | $ 12.8 | $ 65.2 | $ 62.9 |
Restructuring Costs (Credits)_3
Restructuring Costs (Credits), Net - Summary of Company's Net Pretax Restructuring Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs (credits), net | $ (3.1) | $ 40.3 | $ 100.2 | $ 83.6 |
Broadband [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs (credits), net | (3.6) | 11.7 | 69.6 | 16.9 |
OWN [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs (credits), net | 0.4 | 5.9 | 6.6 | 9.8 |
VCN [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs (credits), net | (0.1) | 18.9 | 16 | 29 |
Home [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs (credits), net | $ 0.2 | $ 3.8 | $ 8 | $ 27.9 |
Restructuring Costs (Credits)_4
Restructuring Costs (Credits), Net - Restructuring Liabilities Included in Company's Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | $ 47.2 | $ 22 |
Ending balance | 81.1 | 26 |
Accrued and Other Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | 47.2 | 22 |
Other Noncurrent Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, non-current | $ 33.9 | $ 4 |
Restructuring Costs (Credits)_5
Restructuring Costs (Credits), Net - Activity within Liability Established for Restructuring Actions (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | $ 26 | |||
Additional expense, net | $ (3.1) | $ 40.3 | 100.2 | $ 83.6 |
Ending Balance | 81.1 | 81.1 | ||
CommScope NEXT Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 68.4 | |||
Expense reversal, net | (5.1) | |||
Additional expense, net | 87.1 | |||
Cash paid | (4.9) | (24.7) | ||
Non-cash items | 4 | |||
Ending Balance | 58.4 | 58.4 | ||
ARRIS Integration Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 22.8 | 25.2 | ||
Additional expense, net | 2 | 13.1 | ||
Cash paid | (1.9) | (13.9) | ||
Non-cash items | (0.6) | (2.1) | ||
Ending Balance | 22.3 | 22.3 | ||
Employee-Related Costs [Member] | CommScope NEXT Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 68.4 | |||
Expense reversal, net | (5.1) | |||
Additional expense, net | 83.1 | |||
Cash paid | (4.9) | (24.7) | ||
Ending Balance | 58.4 | 58.4 | ||
Employee-Related Costs [Member] | ARRIS Integration Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 22.6 | 24.4 | ||
Additional expense, net | 1.3 | 10.5 | ||
Cash paid | (1.6) | (12.6) | ||
Ending Balance | 22.3 | 22.3 | ||
Other Costs [Member] | CommScope NEXT Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional expense, net | 4 | |||
Non-cash items | (4) | |||
Other Costs [Member] | ARRIS Integration Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 0.2 | 0.8 | ||
Additional expense, net | 0.7 | 2.6 | ||
Cash paid | (0.3) | (1.3) | ||
Non-cash items | $ (0.6) | $ (2.1) |
Restructuring Costs (Credits)_6
Restructuring Costs (Credits), Net - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
CommScope NEXT Restructuring Plan [Member] | Remainder of 2021 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected cash payments | $ 2.3 |
CommScope NEXT Restructuring Plan [Member] | 2022 to 2023 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected cash payments | 56.1 |
ARRIS [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Recognized restructuring charges | 187.7 |
ARRIS [Member] | Remainder of 2021 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected cash payments | 17.9 |
ARRIS [Member] | 2022 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected cash payments | $ 4.4 |
Series A Convertible Preferre_2
Series A Convertible Preferred Stock - Additional Information (Detail) - Carlyle [Member] - USD ($) $ / shares in Units, $ in Millions | Apr. 04, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Class Of Stock [Line Items] | |||||
Agreement date | Nov. 8, 2018 | ||||
Series A Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Convertible preferred stock, share issued | 1,000,000 | ||||
Total purchase price | $ 1,000 | ||||
Total purchase price per share | $ 1,000 | ||||
Convertible preferred stock, conversion price per share | $ 27.50 | ||||
Initial conversion rate of common stock per share of the convertible preferred stock | 36.3636 | ||||
Series A Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Convertible preferred stock, dividend payment terms | Holders of the Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per year | ||||
Convertible preferred stock, dividend rate percentage | 5.50% | ||||
Dividends declared payable in kind | $ 14.1 | $ 41.8 | |||
Dividends declared payable in cash | $ 14.3 | $ 43 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders Equity [Line Items] | ||||
Unrecognized compensation costs related to unvested stock options, restricted stock units (RSUs) and performance share units (PSUs) | $ 127,000,000 | $ 127,000,000 | ||
Recognition period of unrecognized compensation expense | 2 years 1 month 6 days | |||
Capitalized equity-based compensation costs | $ 0 | |||
Stock Options [Member] | ||||
Stockholders Equity [Line Items] | ||||
Contractual term | 10 years | |||
Stock Options [Member] | Minimum [Member] | ||||
Stockholders Equity [Line Items] | ||||
Vesting period, year | 5 years | |||
Non Qualified Stock Option [Member] | ||||
Stockholders Equity [Line Items] | ||||
Stock option awards granted | 0 | 0 | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||
Stockholders Equity [Line Items] | ||||
Vesting period, year | 1 year | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||
Stockholders Equity [Line Items] | ||||
Vesting period, year | 3 years | |||
Performance Shares [Member] | Minimum [Member] | ||||
Stockholders Equity [Line Items] | ||||
Number of shares issued on performance | 0.00% | |||
Performance Shares [Member] | Maximum [Member] | ||||
Stockholders Equity [Line Items] | ||||
Number of shares issued on performance | 300.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Equity-Based Compensation Expense Included in the Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 21 | $ 34 | $ 61 | $ 90 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 10.8 | 18.6 | 31.2 | 49.3 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 3.5 | 5.5 | 10 | 14.5 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 6.7 | $ 9.9 | $ 19.8 | $ 26.2 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Detail) - Non Qualified Stock Option [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, Options Beginning Balance | 3.2 | 6.2 | ||
Shares, Exercised | (0.1) | (0.8) | ||
Shares, Forfeited | (0.1) | (2.4) | ||
Shares, Expired | (0.1) | (0.1) | ||
Shares, Options Ending Balance | 2.9 | 3.2 | 2.9 | 6.2 |
Shares, Options vested Ending Balance | 2.2 | 2.2 | ||
Shares, Options unvested Ending Balance | 0.7 | 0.7 | ||
Weighted Average Option Exercise Price Per Share, Balance | $ 23.95 | $ 19.86 | ||
Weighted Average Option Exercise Price Per Share, Exercised | 18.60 | 7.18 | ||
Weighted Average Option Exercise Price Per Share, Forfeited | 18.60 | 18.40 | ||
Weighted Average Option Exercise Price Per Share, Expired | 27.82 | 25.88 | ||
Weighted Average Option Exercise Price Per Share, Balance | 24.19 | $ 23.95 | 24.19 | $ 19.86 |
Weighted Average Option Exercise Price Per Share, Options vested Ending Balance | 25.93 | 25.93 | ||
Weighted Average Option Exercise Price Per Share, Options unvested Ending Balance | $ 18.14 | $ 18.14 | ||
Weighted Average Remaining Contractual Term in Years, Options outstanding | 5 years 1 month 6 days | 5 years 9 months 18 days | 5 years 1 month 6 days | 6 years 7 months 6 days |
Weighted Average Remaining Contractual Term in Years, Options vested | 4 years 3 months 18 days | |||
Weighted Average Remaining Contractual Term in Years, Options unvested | 7 years 7 months 6 days | |||
Aggregate Intrinsic Value, Options Outstanding Balance | $ 6.5 | $ 5.6 | ||
Aggregate Intrinsic Value, Options Outstanding Balance | 0.5 | $ 6.5 | 0.5 | $ 5.6 |
Aggregate Intrinsic Value, Options vested Ending Balance | 0.4 | 0.4 | ||
Aggregate Intrinsic Value, Options unvested Ending Balance | $ 0.1 | $ 0.1 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Exercise Price (Detail) shares in Millions | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
$5.50 to $18.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | $ 5.50 |
Range of Exercise Prices Maximum | $ 18.50 |
Options Outstanding Shares | shares | 0.1 |
Weighted Average Remaining Contractual Life | 4 years 7 months 6 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 10.15 |
Options Exercisable Shares | shares | 0.1 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 9.20 |
$18.51 to $30.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 18.51 |
Range of Exercise Prices Maximum | $ 30 |
Options Outstanding Shares | shares | 1.9 |
Weighted Average Remaining Contractual Life | 5 years 7 months 6 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 19.59 |
Options Exercisable Shares | shares | 1.2 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 20.06 |
$30.01 to $45.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 30.01 |
Range of Exercise Prices Maximum | $ 45 |
Options Outstanding Shares | shares | 0.9 |
Weighted Average Remaining Contractual Life | 4 years |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 36.45 |
Options Exercisable Shares | shares | 0.9 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 36.45 |
$5.50 to $45.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 5.50 |
Range of Exercise Prices Maximum | $ 45 |
Options Outstanding Shares | shares | 2.9 |
Weighted Average Remaining Contractual Life | 5 years 1 month 6 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 24.19 |
Options Exercisable Shares | shares | 2.2 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 25.93 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share units, Beginning balance | 11.3 | 13.2 |
Shares, Granted | 3.8 | |
Shares, Vested and shares issued | (5) | |
Shares, Forfeited | (0.4) | (1.1) |
Non-vested share units, Ending balance | 10.9 | 10.9 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ 15 | $ 13.62 |
Weighted Average Grant Date Fair Value Per Share, Granted | 20.39 | |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | 15.72 | |
Weighted Average Grant Date Fair Value Per Share, Forfeited | 14.84 | 13.78 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ 15.01 | $ 15.01 |
Stockholders' Equity - Summar_5
Stockholders' Equity - Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.40% |
Expected volatility | 56.00% |
Weighted average fair value at grant date | $ 11.21 |
Stockholders' Equity - Summar_6
Stockholders' Equity - Summary of PSU Activity (Detail) - Performance Shares [Member] - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share units, Beginning balance | 2.2 | 1.5 |
Shares, Granted | 0.3 | 1 |
Shares, Forfeited | (0.1) | (0.1) |
Non-vested share units, Ending balance | 2.4 | 2.4 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ 6.30 | $ 4.03 |
Weighted Average Grant Date Fair Value Per Share, Granted | 18.97 | 14.48 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | 13.88 | 13.88 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ 8.02 | $ 8.02 |