Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
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 | 212,058,471 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | COMM | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-36146 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-4332098 | |
Entity Address, Address Line One | 3642 E. US Highway 70 | |
Entity Address, City or Town | Claremont | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28610 | |
City Area Code | 828 | |
Local Phone Number | 459-5000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,599.5 | $ 2,381.4 | $ 5,519.4 | $ 6,910.2 |
Cost of sales | 1,053.3 | 1,645.1 | 3,664.3 | 4,854.4 |
Gross profit | 546.2 | 736.3 | 1,855.1 | 2,055.8 |
Operating expenses: | ||||
Selling, general and administrative | 229.7 | 281.7 | 748.1 | 844.9 |
Research and development | 125.5 | 161.9 | 432.1 | 498 |
Amortization of purchased intangible assets | 101.3 | 134.6 | 329.1 | 414.3 |
Restructuring costs, net | 20.4 | 2.5 | 51.8 | 53.1 |
Asset impairments | 895.1 | 0 | 895.1 | 0 |
Total operating expenses | 1,372 | 580.7 | 2,456.2 | 1,810.3 |
Operating income (loss) | (825.8) | 155.6 | (601.1) | 245.5 |
Other income, net | 6.4 | 5.4 | 14.5 | 6.4 |
Interest expense | (171.3) | (150.9) | (504.9) | (427.5) |
Interest income | 3.4 | 0.6 | 7.8 | 1.8 |
Income (loss) before income taxes | (987.3) | 10.7 | (1,083.7) | (173.8) |
Income tax (expense) benefit | 158.6 | 12.2 | 158 | (4.2) |
Net income (loss) | (828.7) | 22.9 | (925.7) | (178) |
Series A convertible preferred stock dividends | (15.5) | (14.9) | (45.9) | (44.1) |
Net income (loss) attributable to common stockholders | $ (844.2) | $ 8 | $ (971.6) | $ (222.1) |
Earnings (loss) per share: | ||||
Basic | $ (3.98) | $ 0.04 | $ (4.62) | $ (1.07) |
Diluted | $ (3.98) | $ 0.04 | $ (4.62) | $ (1.07) |
Weighted average shares outstanding: | ||||
Basic | 211.9 | 208.2 | 210.4 | 207.1 |
Diluted | 211.9 | 211.3 | 210.4 | 207.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Comprehensive loss: | ||||
Net Income (Loss) | $ (828.7) | $ 22.9 | $ (925.7) | $ (178) |
Other comprehensive income loss, net of tax: | ||||
Foreign currency translation loss | (45.1) | (94.5) | (24.4) | (204.9) |
Pension and other postretirement benefit activity | 0.1 | 0 | 0 | (1.3) |
Gain on hedging instruments | 3.8 | 3.7 | 3.3 | 15.5 |
Total other comprehensive loss, net of tax | (41.2) | (90.8) | (21.1) | (190.7) |
Total comprehensive loss | $ (869.9) | $ (67.9) | $ (946.8) | $ (368.7) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 518.9 | $ 398.1 |
Accounts receivable, net of allowance for doubtful accounts of $66.3 and $82.8, respectively | 1,144.5 | 1,523.6 |
Inventories, net | 1,364.6 | 1,588.1 |
Prepaid expenses and other current assets | 186.7 | 216.4 |
Total current assets | 3,214.7 | 3,726.2 |
Property, plant and equipment, net of accumulated depreciation of $918.6 and $873.5, respectively | 539.1 | 609.6 |
Goodwill | 3,635.7 | 4,072.4 |
Other intangible assets, net | 1,673.2 | 2,473.5 |
Other noncurrent assets | 1,002.9 | 803.7 |
Total assets | 10,065.6 | 11,685.4 |
Liabilities and Stockholders' Equity (Deficit) | ||
Accounts payable | 795.3 | 1,025.5 |
Accrued and other liabilities | 719.2 | 1,050 |
Current portion of long-term debt | 32 | 32 |
Total current liabilities | 1,546.5 | 2,107.5 |
Long-term debt | 9,353.3 | 9,469.6 |
Deferred income taxes | 105.2 | 173.4 |
Other noncurrent liabilities | 404.4 | 380.6 |
Total liabilities | 11,409.4 | 12,131.1 |
Commitments and contingencies | ||
Series A convertible preferred stock, $0.01 par value | 1,146.3 | 1,100.3 |
Stockholders' equity (deficit): | ||
Preferred stock, $0.01 par value: Authorized shares: 200,000,000; Issued and outstanding shares: 1,146,324 and 1,100,310, respectively, Series A convertible preferred stock | 0 | 0 |
Common stock, $0.01 par value: Authorized shares: 1,300,000,000; Issued and outstanding shares: 211,918,754 and 208,371,426, respectively | 2.3 | 2.2 |
Additional paid-in capital | 2,554.4 | 2,542.9 |
Accumulated deficit | (4,427.9) | (3,502.2) |
Accumulated other comprehensive loss | (317.4) | (296.3) |
Treasury stock, at cost: 14,345,829 shares and 12,726,695 shares, respectively | (301.5) | (292.6) |
Total stockholders' deficit | (2,490.1) | (1,546) |
Total liabilities and stockholders' deficit | $ 10,065.6 | $ 11,685.4 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 66.3 | $ 82.8 |
Property, plant and equipment, accumulated depreciation | $ 918.6 | $ 873.5 |
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 | 1,146,324 | 1,146,324 |
Series A convertible preferred stock, shares outstanding | 1,100,310 | 1,100,310 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,300,000,000 | 1,300,000,000 |
Common stock, shares issued | 211,918,754 | 208,371,426 |
Common stock, shares outstanding | 211,918,754 | 208,371,426 |
Treasury stock, Shares | 14,345,829 | 12,726,695 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities: | ||
Net loss | $ (925.7) | $ (178) |
Adjustments to reconcile net loss to net cash generated by (used in) operating activities: | ||
Depreciation and amortization | 442.2 | 529.1 |
Equity-based compensation | 35.5 | 45.3 |
Deferred income taxes | (249.9) | (75.2) |
Asset impairments | 895.1 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 375 | (191) |
Inventories | 218 | (153.3) |
Prepaid expenses and other assets | 13.2 | (4.7) |
Accounts payable and other liabilities | (524.8) | (154.8) |
Other | (49.1) | (14.1) |
Net cash generated by (used in) operating activities | 229.5 | (196.7) |
Investing Activities: | ||
Additions to property, plant and equipment | (43.9) | (78.7) |
Proceeds from sale of property, plant and equipment | 41.8 | 0.1 |
Other | 20.4 | 16 |
Net cash generated by (used in) investing activities | 18.3 | (62.6) |
Financing Activities: | ||
Long-term debt repaid | (24) | (252) |
Long-term debt repurchases | (92.1) | 0 |
Long-term debt proceeds | 0 | 333 |
Dividends paid on Series A convertible preferred stock | 0 | (14.9) |
Proceeds from the issuance of common shares under equity-based compensation plans | 0 | 0.1 |
Tax withholding payments for vested equity-based compensation awards | (8.9) | (14) |
Other | 2.1 | 2.2 |
Net cash generated by (used in) financing activities | (122.9) | 54.4 |
Effect of exchange rate changes on cash and cash equivalents | (4.1) | (9.9) |
Change in cash and cash equivalents | 120.8 | (214.8) |
Cash and cash equivalents at beginning of period | 398.1 | 360.3 |
Cash and cash equivalents at end of period | $ 518.9 | $ 145.5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' 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, 2021 | 204,567,294 | |||||
Issuance of shares under equity-based compensation plans, shares | 5,305,926 | |||||
Shares surrendered under equity-based compensation plans | (1,674,977) | |||||
Ending balance, Shares at Sep. 30, 2022 | 208,198,243 | |||||
Beginning balance at Dec. 31, 2021 | $ 2.2 | $ 2,540.7 | $ (2,215.3) | $ (206.4) | $ (277.8) | |
Issuance of shares under equity-based compensation plans | 0.1 | |||||
Equity-based compensation | 45.3 | |||||
Dividend on Series A convertible preferred stock | (44.1) | |||||
Other | 0 | |||||
Net income (loss) | $ (178) | (178) | ||||
Other comprehensive loss, net of tax | (190.7) | (190.7) | ||||
Net shares surrendered under equity-based compensation plans | (14) | |||||
Ending balance at Sep. 30, 2022 | (538) | $ 2.2 | 2,542 | (2,393.3) | (397.1) | (291.8) |
Beginning balance, Shares at Jun. 30, 2022 | 208,162,986 | |||||
Issuance of shares under equity-based compensation plans, shares | 46,467 | |||||
Shares surrendered under equity-based compensation plans | (11,210) | |||||
Ending balance, Shares at Sep. 30, 2022 | 208,198,243 | |||||
Beginning balance at Jun. 30, 2022 | $ 2.2 | 2,540.4 | (2,416.2) | (306.3) | (291.7) | |
Issuance of shares under equity-based compensation plans | 0.1 | |||||
Equity-based compensation | 16.4 | |||||
Dividend on Series A convertible preferred stock | (14.9) | |||||
Other | 0 | |||||
Net income (loss) | 22.9 | 22.9 | ||||
Other comprehensive loss, net of tax | (90.8) | (90.8) | ||||
Net shares surrendered under equity-based compensation plans | (0.1) | |||||
Ending balance at Sep. 30, 2022 | $ (538) | $ 2.2 | 2,542 | (2,393.3) | (397.1) | (291.8) |
Beginning balance, Shares at Dec. 31, 2022 | 208,371,426 | 208,371,426 | ||||
Issuance of shares under equity-based compensation plans, shares | 5,166,462 | |||||
Shares surrendered under equity-based compensation plans | (1,619,134) | |||||
Ending balance, Shares at Sep. 30, 2023 | 211,918,754 | 211,918,754 | ||||
Beginning balance at Dec. 31, 2022 | $ (1,546) | $ 2.2 | 2,542.9 | (3,502.2) | (296.3) | (292.6) |
Issuance of shares under equity-based compensation plans | 0.1 | 0 | ||||
Equity-based compensation | 35.5 | |||||
Dividend on Series A convertible preferred stock | (45.9) | |||||
Other | 21.9 | |||||
Net income (loss) | (925.7) | (925.7) | ||||
Other comprehensive loss, net of tax | (21.1) | (21.1) | ||||
Net shares surrendered under equity-based compensation plans | (8.9) | |||||
Ending balance at Sep. 30, 2023 | $ (2,490.1) | $ 2.3 | 2,554.4 | (4,427.9) | (317.4) | (301.5) |
Beginning balance, Shares at Jun. 30, 2023 | 211,912,464 | |||||
Issuance of shares under equity-based compensation plans, shares | 9,362 | |||||
Shares surrendered under equity-based compensation plans | (3,072) | |||||
Ending balance, Shares at Sep. 30, 2023 | 211,918,754 | 211,918,754 | ||||
Beginning balance at Jun. 30, 2023 | $ 2.3 | 2,558.7 | (3,599.2) | (276.2) | (301.5) | |
Issuance of shares under equity-based compensation plans | 0 | |||||
Equity-based compensation | 11.3 | |||||
Dividend on Series A convertible preferred stock | (15.5) | |||||
Other | (0.1) | |||||
Net income (loss) | $ (828.7) | (828.7) | ||||
Other comprehensive loss, net of tax | (41.2) | (41.2) | ||||
Ending balance at Sep. 30, 2023 | $ (2,490.1) | $ 2.3 | $ 2,554.4 | $ (4,427.9) | $ (317.4) | $ (301.5) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (828.7) | $ 22.9 | $ (925.7) | $ (178) |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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, data center 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 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. The unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) 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, 2022 (the 2022 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 2022 Annual Report. There were no material changes in the Company’s significant accounting policies during the three or nine months ended September 30, 2023 . 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, 2023 . Net sales to Comcast Corporation and affiliates (Comcast) accounted for 11 % of the Company's total net sales during the three months ended September 30, 2022. No direct customer accounted for 10 % or more of the Company’s total net sales during the nine months ended September 30, 2022 . Accounts receivable from Charter Communications, Inc. (Charter) represented approximately 10 % of accounts receivable as of September 30, 2023 . Other than Charter, 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, 2023 , 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, 2023 . Commitments and Contingencies Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer assurance-type warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods, depending on 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 on the Condensed Consolidated Balance Sheets: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Product warranty accrual, beginning of period $ 50.5 $ 60.9 $ 55.0 $ 66.8 Provision for warranty claims 3.5 5.8 17.5 18.0 Warranty claims paid ( 10.1 ) ( 9.3 ) ( 28.8 ) ( 27.0 ) Foreign exchange ( 0.1 ) ( 0.4 ) 0.1 ( 0.8 ) Product warranty accrual, end of period $ 43.8 $ 57.0 $ 43.8 $ 57.0 Third-Party Guarantees The Company was contingently liable under open standby letters of credit issued by its banks to support performance obligations of a third-party contractor that totaled $ 44.0 million as of September 30, 2023. These amounts represent an estimate of the maximum amounts the Company would expect to incur upon the contractual non-performance of the third-party contractor, but the Company also has cross-indemnities in place that may enable it to recover amounts in the event of non-performance by the third-party contractor. The Company believes the likelihood of having to perform under these guarantees is remote. There were no material amounts recorded in the condensed consolidated financial statements related to third-party guarantee agreements for the three or nine months ended September 30, 2023 or 2022 or as of September 30, 2023 or December 31, 2022. As of September 30, 2023, these instruments reduced the available borrowings under the senior secured asset-based revolving credit facility (the Revolving Credit Facility). Non-cancellable Purchase Obligations In July 2023, the Company entered into a long-term supply contract with a third party to secure the supply of certain raw materials. Under the terms of the contract, the Company will make advance payments through 2026 totaling $ 120.0 million (undiscounted) and based on meeting certain minimum purchase requirements through 2031, such advance payments will be credited and applied to future orders on a quarterly basis beginning in 2027 through 2031. The advance payments are capitalized as other noncurrent assets in the Condensed Consolidated Balance Sheets. The Company has committed to purchases of raw materials under this agreement beginning in 2023 and growing to a level of approximately $ 137 million per year by 2026 and continuing through 2032. Legal Proceedings The Company is party to certain intellectual property claims and also 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 or royalties, stop offering the relevant products and/or cease other activities. The Company may also be called upon to defend and 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, through settlement or trial, could be material and may vary significantly from the Company's estimates. From time to time, the Company may also be involved as a plaintiff in certain intellectual property claims. Gain contingencies, if any, are recognized when they are realized. The Company had liabilities of $ 25.4 million and $ 37.1 million as of September 30, 2023 and December 31, 2022 , respectively, 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 the process of settlement. For the three and nine months ended September 30, 2023, the Company recorded a $ 3.5 million gain related to the settlement of an intellectual property claim, and for the nine months ended September 30, 2023 , the Company also released $ 11.0 million in accrued liabilities related to an intellectual property claim that was settled at an amount that was lower than estimated. Charges related to intellectual property assertions were no t material for the three or nine months ended September 30, 2023 or 2022. The Company received $ 3.5 million during the three and nine months ended September 30, 2023 and paid $ 2.0 million during the nine months ended September 30, 2023 to settle intellectual property claims and assertions. The Company paid $ 11.2 million and $ 21.0 million during the three and nine months ended September 30, 2022, respectively, to settle intellectual property claims and assertions. The Company is also either a plaintiff or a defendant in certain other pending legal matters in the normal course of business. Management believes that, upon final disposition, none of these other pending legal matters will have a material adverse effect on the Company’s business or financial condition. 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. Derivative Instruments and Hedging Activities The Company has utilized a hedging strategy to mitigate a portion of the exposure to changes in cash flows resulting from variable interest rates on the senior secured term loan due 2026 (2026 Term Loan). In conjunction with the amendment to its 2026 Term Loan due to reference rate reform, on June 28, 2023, the Company settled its cash flow hedges with a notional value of $ 300.0 million and received cash of $ 6.8 million which is included within operating cash flow activity in accordance with the Company's accounting policy. The cash flow hedges were derecognized, and the gain of $ 6.1 million remaining as a component of accumulated comprehensive loss in the Condensed Consolidated Balance Sheets will continue to be reclassified to earnings through interest expense as the interest payments are made on the 2026 Term Loan unless the forecasted hedged transaction becomes probable of not occurring. See Note 5 for further discussion of the amendment to the 2026 Term Loan. Following the amendment to the 2026 Term Loan and settlement of the cash flow hedges noted above, during the three months ended September 30, 2023, the Company reenacted its hedging strategy to mitigate the interest rate risk from its variable rate debt, initially associated with its amended 2026 Term Loan and extending to future borrowings or debt issued, to fix a portion of the future interest cash flows by designating qualifying receive-variable and pay-fixed interest rate swaps as a cash flow hedge for accounting and financial reporting purposes. The total notional amount of the interest rate swap derivatives as of September 30, 2023 was $ 700.0 million with outstanding maturities up to thirty-six months. Asset Impairments Goodwill 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. See Notes 2 and 6 for discussion of goodwill impairment tests and charges during the three and nine months ended September 30, 2023. There were no goodwill impairments identified during the three or nine months ended September 30, 2022. Considering the low headroom going forward for each of the Access Network Solutions (ANS) and Building and Data Center Connectivity (BDCC) reporting units, there is a risk for future impairment in the event of declines in general economic, market or business conditions or any significant unfavorable change in the forecasted cash flows, weighted average cost of capital or growth rates. If current and long-term projections for the ANS and BDCC reporting units are not realized or decrease materially, the Company may be required to recognize additional goodwill impairment charges, and these charges could be material to the Company's results of operations. Long-lived Assets Long-lived assets, which include property, plant and equipment, intangible assets with finite lives and right of use assets 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. See Notes 2 and 6 for discussion of definite-lived intangible asset impairment tests and charges during the three and nine months ended September 30, 2023. There were no additional definite-lived intangible or other long-lived asset impairments identified during the three or nine months ended September 30, 2023 or 2022, other than certain assets impaired as a result of restructuring actions. Income Taxes For the three and nine months ended September 30, 2023, the Company recognized an income tax benefit of $ 158.6 million on a pretax loss of $ 987.3 million and an income tax benefit of $ 158.0 million on a pretax loss of $ 1,083.7 million, respectively. The Company’s tax benefit was less than the statutory rate of 21 % for the three and nine months ended September 30, 2023 primarily due to the unfavorable impact related to a goodwill impairment charge of $ 425.9 million for which minimal tax benefits were recorded. The Company's tax benefit was favorably impacted by $ 4.1 million related to tax law changes for the three and nine months ended September 30, 2023. In addition to the unfavorable impact of the goodwill impairment charge mentioned above, for the nine months ended September 30, 2023, the Company's tax benefit was also unfavorably impacted by e xcess tax costs of $ 7.1 million related to equity compensation awards but favorably impacted by $ 9.6 million related to the release of various uncertain tax positions . For the three and nine months ended September 30, 2022, the Company recognized a tax benefit of $ 12.2 million on pretax income of $ 10.7 million and $ 4.2 million of income tax expense on a pretax loss of $ 173.8 million, respectively. For the three months ended September 30, 2022, the Company’s tax benefit was driven by the impacts of federal tax credits, partially offset by unfavorable impacts of U.S. anti-deferral provisions, non-creditable withholding taxes and $ 3.7 million of tax expense related to state law changes. For the nine months ended September 30, 2022, the Company's tax expense was driven by the unfavorable impacts of U.S. anti-deferral provisions, non-creditable withholding taxes and the tax expense related to state law changes, partially offset by the impacts of federal tax credits. 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, 2023 , 18.9 million and 17.2 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, 2023, 0.6 million and 2.0 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss attributable to common stockholders position. For the three and nine months ended September 30, 2022, 7.7 million and 11.6 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 nine months ended September 30, 2022, 2.6 million shares would have been considered dilutive if the Company had not been in a net loss attributable to common stockholders position. For the three and nine months ended September 30, 2023 , 41.1 million and 40.6 million, respectively, 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, 2022 , 39.5 and 38.9 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were antidilutive. For the nine months ended September 30, 2022, these shares may have been considered dilutive if the Company had not been in a net loss attributable to common stockholders 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, 2023 2022 2023 2022 Numerator: Net income (loss) $ ( 828.7 ) $ 22.9 $ ( 925.7 ) $ ( 178.0 ) Dividends on Series A convertible preferred stock ( 15.5 ) ( 14.9 ) ( 45.9 ) ( 44.1 ) Net income (loss) attributable to common stockholders $ ( 844.2 ) $ 8.0 $ ( 971.6 ) $ ( 222.1 ) Denominator: Weighted average common shares outstanding – basic 211.9 208.2 210.4 207.1 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — 3.1 — — Weighted average common shares outstanding – diluted 211.9 211.3 210.4 207.1 Earnings (loss) per share: Basic $ ( 3.98 ) $ 0.04 $ ( 4.62 ) $ ( 1.07 ) Diluted $ ( 3.98 ) $ 0.04 $ ( 4.62 ) $ ( 1.07 ) Recent Accounting Pronouncements Adopted During the Nine Months Ended September 30, 2023 On January 1, 2023, the Company adopted Accounting Standards Update (ASU) No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations . The new guidance improves the transparency of supplier finance programs by requiring that a buyer in a supplier finance program disclose sufficient qualitative and quantitative information about the program to allow a user of its financial statements to understand the program's nature, activity during the period, changes from period to period and potential effect on an entity's financial statements. This guidance has been applied retrospectively to all periods in which a balance sheet is presented, except for the requirement to disclose rollforward information, which is effective prospectively for the Company as of January 1, 2024. The impact of adopting this new guidance was not material to the condensed consolidated financial statements. In June 2023, the Company adopted ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and the related updates, ASU No. 2021-01 , Reference Rate Reform (Topic 848): Scope and ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . Together, the ASUs provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The Company adopted the reference rate reform guidance in connection with its amendment of the 2026 Term Loan on June 8, 2023 to transition from the Eurodollar Rate based on LIBOR to a Secured Overnight Financing Rate (SOFR), effective as of July 1, 2023, as the reference interest rate in anticipation of the cessation of LIBOR in 2023 (see Note 5 for further discussion). The impact of adopting this guidance was not material to the condensed consolidated financial statements. The Company continues to evaluate and monitor developments and its assessment of this guidance during the LIBOR transition period. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | 2. GOODWILL AND OTHER INTANGIBLE ASSETS During the third quarter of 2023, the Company determined there was an indicator of impairment for long-lived assets in the Home Networks (Home) segment. The Company’s assessment utilized a held in use framework, giving consideration to the expectation that, more likely than not, its Home segment (asset group) would be sold before the end of its previously estimated useful life, due to the impending divestiture as further discussed in Note 11. As a result, for the three and nine months ended September 30, 2023, the Company recorded a partial impairment of $ 469.2 million related to the Home segment's intangible assets in asset impairments in the Condensed Consolidated Statements of Operations. See Note 6 for further discussion of the assumptions used in the valuation. The following table presents the activity in goodwill by reportable segment: December 31, 2022 Activity September 30, 2023 Goodwill Accumulated Impairment Losses Total Additions (Deductions) Impairment Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total CCS $ 2,280.9 $ ( 51.5 ) $ 2,229.4 $ — $ — $ ( 6.7 ) $ 2,274.2 $ ( 51.5 ) $ 2,222.7 OWN 660.3 ( 159.5 ) 500.8 — — ( 1.5 ) 658.8 ( 159.5 ) 499.3 NICS 649.4 ( 41.2 ) 608.2 — — ( 1.3 ) 648.1 ( 41.2 ) 606.9 ANS 1,995.7 ( 1,261.7 ) 734.0 — ( 425.9 ) ( 1.3 ) 1,994.4 ( 1,687.6 ) 306.8 Home 413.2 ( 413.2 ) — — — — 413.2 ( 413.2 ) — Total $ 5,999.5 $ ( 1,927.1 ) $ 4,072.4 $ — $ ( 425.9 ) $ ( 10.8 ) $ 5,988.7 $ ( 2,353.0 ) $ 3,635.7 Primarily due to a sustained decrease in the market value of the Company’s debt and common stock affecting the overall business and changes in expected future cash flows due to reduced earnings forecasts and current macroeconomic conditions, including a rising interest rate environment, during the third quarter of 2023, the Company concluded that a triggering event occurred and performed an interim quantitative goodwill impairment test as of September 30, 2023 for its ANS and BDCC reporting units, which were most sensitive to negative performance and outlook, to compare the fair values of the reporting units to their carrying amounts, including the goodwill. As a result, for the three and nine months ended September 30, 2023, the Company recorded a goodwill impairment charge of $ 425.9 million in asset impairments in the Condensed Consolidated Statements of Operations to partially write down the carrying amount of the ANS reporting unit goodwill. There was no impairment identified in the BDCC reporting unit as of September 30, 2023. The BDCC reporting unit is in the CCS reportable segment. See Note 6 for further discussion of the assumptions used in the valuation. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Net Sales See Note 7 for the presentation of net sales by segment and geographic region. Allowance for Doubtful Accounts Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Allowance for doubtful accounts, beginning of period $ 63.0 $ 61.6 $ 82.8 $ 63.7 Provision 4.4 1.4 7.4 2.2 Write-offs ( 0.6 ) ( 0.8 ) ( 23.8 ) ( 1.9 ) Foreign exchange and other ( 0.5 ) ( 1.3 ) ( 0.1 ) ( 3.1 ) Allowance for doubtful accounts, end of period $ 66.3 $ 60.9 $ 66.3 $ 60.9 During the nine months ended September 30, 2023, the Company wrote off $ 18.5 million related to an accounts receivable balance that had previously been fully reserved during the year ended December 31, 2022. The balance related to a distributor in the Outdoor Wireless Networks segment. 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: Contract Balance Type Balance Sheet Location September 30, December 31, 2022 Unbilled accounts receivable Accounts receivable, net of allowance for doubtful accounts $ 39.5 $ 35.3 Deferred revenue - current Accrued and other liabilities $ 102.0 $ 97.9 Deferred revenue - noncurrent Other noncurrent liabilities 69.8 63.4 Total contract liabilities $ 171.8 $ 161.3 There were no material changes to contract asset balances for the nine months ended September 30, 2023 as a result of changes in estimates or impairments. The change in the contract liability balance from December 31, 2022 to September 30, 2023 was primarily due to upfront support billings to be recognized over the support term. During the three and nine months ended September 30, 2023 , the Company recognized $ 18.6 million and $ 82.5 million, respectively, of revenue related to contract liabilities recorded as of December 31, 2022 . |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | 4. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts Receivable September 30, December 31, Accounts receivable - trade $ 1,180.0 $ 1,545.3 Accounts receivable - other 30.8 61.1 Allowance for doubtful accounts ( 66.3 ) ( 82.8 ) Total accounts receivable, net $ 1,144.5 $ 1,523.6 Inventories September 30, December 31, Raw materials $ 492.3 $ 535.8 Work in process 176.9 212.7 Finished goods 695.4 839.6 Total inventories, net $ 1,364.6 $ 1,588.1 Accrued and Other Liabilities September 30, December 31, Compensation and employee benefit liabilities $ 191.0 $ 301.3 Deferred revenue 102.0 97.9 Accrued interest 56.9 118.1 Operating lease liabilities 40.9 47.7 Product warranty accrual 36.1 44.8 Restructuring liabilities 35.2 58.9 Contract manufacturer inventory repurchase obligation 13.5 79.1 Other 243.6 302.2 Total accrued and other liabilities $ 719.2 $ 1,050.0 Operating Lease Information Balance Sheet Location September 30, December 31, Right of use assets Other noncurrent assets $ 167.5 $ 149.0 Lease liabilities - current Accrued and other liabilities $ 40.9 $ 47.7 Lease liabilities - noncurrent Other noncurrent liabilities 146.6 123.5 Total lease liabilities $ 187.5 $ 171.2 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, 2023 2022 2023 2022 Foreign currency translation Balance at beginning of period $ ( 249.6 ) $ ( 276.2 ) $ ( 270.3 ) $ ( 165.8 ) Other comprehensive loss ( 45.1 ) ( 94.5 ) ( 24.4 ) ( 204.9 ) Balance at end of period $ ( 294.7 ) $ ( 370.7 ) $ ( 294.7 ) $ ( 370.7 ) Defined benefit plan activity Balance at beginning of period $ ( 14.9 ) $ ( 14.7 ) $ ( 14.8 ) $ ( 13.4 ) Other comprehensive income (loss) 0.1 — — ( 1.6 ) Amounts reclassified from AOCL — — — 0.3 Balance at end of period $ ( 14.8 ) $ ( 14.7 ) $ ( 14.8 ) $ ( 14.7 ) Hedging instruments Balance at beginning of period $ ( 11.7 ) $ ( 15.4 ) $ ( 11.2 ) $ ( 27.2 ) Other comprehensive income 3.8 3.7 3.3 15.5 Balance at end of period $ ( 7.9 ) $ ( 11.7 ) $ ( 7.9 ) $ ( 11.7 ) Net AOCL at end of period $ ( 317.4 ) $ ( 397.1 ) $ ( 317.4 ) $ ( 397.1 ) Amounts reclassified from net AOCL related to defined benefit plans are recorded in other income, net in the Condensed Consolidated Statements of Operations. Cash Flow Information Nine Months Ended September 30, 2023 2022 Cash paid during the period for: Income taxes, net of refunds $ 85.5 $ 91.7 Interest 546.6 469.6 |
Financing
Financing | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financing | 5. FINANCING September 30, December 31, 7.125 % senior notes due July 2028 $ 695.7 $ 700.0 5.00 % senior notes due March 2027 750.0 750.0 8.25 % senior notes due March 2027 918.6 1,000.0 6.00 % senior notes due June 2025 1,274.6 1,300.0 4.75 % senior secured notes due September 2029 1,250.0 1,250.0 6.00 % senior secured notes due March 2026 1,500.0 1,500.0 Senior secured term loan due April 2026 3,072.0 3,096.0 Senior secured revolving credit facility — — Total principal amount of debt 9,460.9 9,596.0 Less: Original issue discount, net of amortization ( 12.7 ) ( 15.9 ) Less: Debt issuance costs, net of amortization ( 62.9 ) ( 78.5 ) Less: Current portion ( 32.0 ) ( 32.0 ) Total long-term debt $ 9,353.3 $ 9,469.6 See Note 7 within the Company’s audited consolidated financial statements included in the 2022 Annual Report for additional information on the terms and conditions of the Company’s debt obligations. Senior Secured Credit Facilities On June 8, 2023, the Company amended its 2026 Term Loan to transition from the Eurodollar Rate based on LIBOR to SOFR, effective as of July 1, 2023, as the reference interest rate in anticipation of the cessation of LIBOR in 2023. As a result, the 2026 Term Loan will bear interest at (1) an adjusted Term SOFR rate, subject to certain adjustments, plus an applicable margin of 3.25 % or (2) at the option of the Company, a base rate plus an applicable margin of 2.25 %. During the three and nine months ended September 30, 2023 , the Company made the quarterly scheduled amortization payments totaling $ 8.0 million and $ 24.0 million, respectively, on the 2026 Term Loan. The current portion of long-term debt reflects $ 32.0 million of repayments due under the 2026 Term Loan. As of September 30, 2023, the Company did not reflect any portion of the 2026 Term Loan as a current portion of long-term debt related to the potentially required excess cash flow payment because the amount that may be payable in 2024, if any, cannot currently be reliably estimated. There is no excess cash flow payment required in 2023 related to 2022. During the nine months ended September 30, 2023 , the Company did no t borrow under the Revolving Credit Facility. As of September 30, 2023 , the Company had no outstanding borrowings under the Revolving Credit Facility and had availability of $ 771.4 million, after giving effect to borrowing base limitations and outstanding letters of credit. Other Matters The table below summarizes the debt repurchase activity during the nine months ended September 30, 2023: Aggregate Reacquisition 7.125 % senior notes due July 2028 $ 4.3 $ 3.2 8.25 % senior notes due March 2027 81.4 64.6 6.00 % senior notes due June 2025 25.4 24.3 Total $ 111.1 $ 92.1 For the three and nine months ended September 30, 2023 , the repurchase of debt resulted in gains on the early extinguishment of debt of $ 8.6 million and $ 19.0 million, respectively, reflected in other income, net, and the write-off of debt issuance costs of $ 1.0 million for the nine months ended September 30, 2023 reflected in interest expense, in the Condensed Consolidated Statements of Operations. The Company’s non-guarantor subsidiaries held $ 2,834 million, or 28 %, of total assets and $ 799 million, or 7 %, of total liabilities as of September 30, 2023 and accounted for $ 521 million, or 33 %, and $ 1,657 million, or 30 %, of net sales for the three and nine months ended September 30, 2023, respectively. All amounts presented exclude intercompany balances. The weighted average effective interest rate on outstanding borrowings, including the impact of the interest rate swap contracts and the amortization of debt issuance costs and original issue discount, was 7.23 % and 6.91 % as of September 30, 2023 and December 31, 2022 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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 swap contracts 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, 2023 and December 31, 2022 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 swap contracts 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 swap contracts and foreign currency contracts as of September 30, 2023 and December 31, 2022, are as follows: September 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value Valuation Assets: Foreign currency contracts $ 2.1 $ 2.1 $ 9.9 $ 9.9 Level 2 Interest rate swap contracts 6.3 6.3 8.6 8.6 Level 2 Liabilities: 7.125% senior notes due 2028 $ 695.7 $ 407.0 $ 700.0 $ 502.6 Level 2 5.00% senior notes due 2027 750.0 418.1 750.0 513.4 Level 2 8.25% senior notes due 2027 918.6 601.0 1,000.0 780.8 Level 2 6.00% senior notes due 2025 1,274.6 1,194.9 1,300.0 1,183.4 Level 2 4.75% senior secured notes due 2029 1,250.0 909.4 1,250.0 1,000.0 Level 2 6.00% senior secured notes due 2026 1,500.0 1,399.1 1,500.0 1,383.3 Level 2 Senior secured term loan due 2026 3,072.0 2,810.9 3,096.0 2,925.7 Level 2 Foreign currency contracts 14.0 14.0 6.5 6.5 Level 2 Non-Recurring Fair Value Measurements In the third quarter of 2023, a goodwill impairment charge of $ 425.9 million was recorded related to the ANS reporting unit in the ANS segment. The fair value of the reporting unit was determined using a discounted cash flow (DCF) model and a guideline public company approach, with 75 % of the value determined using the DCF model and 25 % of the value determined using the guideline public company approach. Under the DCF method, the fair value of a reporting unit is based on the present value of estimated future cash flows. Under the guideline public company method, the fair value is based upon market multiples of revenue and earnings derived from publicly-traded companies with similar operating and investment characteristics as the reporting unit. The inputs to both the DCF model and the guideline public company analysis are Level 3 valuation inputs. Changes in any of these inputs, among other factors, could negatively affect the fair value of the ANS reporting unit and result in a material impairment charge in the future. The Company also recorded a partial impairment of $ 469.2 million related to the Home segment's intangible assets during the third quarter of 2023. The Company estimated the fair value of the asset group using Company-specific inputs, including estimates of consideration to be received upon the impending divestiture, as well as other market participant assumptions. The determination of the impairment charge was based on Level 3 valuation inputs. 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, 2023 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | 7. SEGMENTS AND GEOGRAPHIC INFORMATION The Company has five reportable segments as described below. The Connectivity and Cable Solutions (CCS) segment provides fiber optic and copper connectivity and cable solutions for use in telecommunications, cable television, residential broadband networks, data centers and business enterprises. The CCS portfolio includes network solutions for indoor and outdoor network applications. Indoor network solutions include optical fiber and twisted pair structured cable solutions, intelligent infrastructure management hardware and software and network rack and cabinet enclosures. Outdoor network solutions are used in both local-area and wide-area networks and “last mile” fiber-to-the-home installations, including deployments of fiber-to-the-node, fiber-to-the-premises and fiber-to-the-distribution point to homes, businesses and cell sites. The Outdoor Wireless Networks (OWN) segment focuses on the macro and metro cell markets. The segment includes base station antennas, radio frequency (RF) filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel, accessories and the wireless spectrum management business, Comsearch. The Networking, Intelligent Cellular and Security Solutions (NICS) segment provides wireless networks for enterprises and service providers. Product offerings include indoor and outdoor Wi-Fi and long-term evolution (LTE) access points, access and aggregation switches; an Internet of Things suite; on-premises and cloud-based control and management systems; and software and software-as-a-service applications addressing security, location, reporting and analytics. The Access Network Solutions (ANS) segment’s product solutions include cable modem termination systems, video infrastructure, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network. 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. The following table provides summary financial information by reportable segment: September 30, December 31, Identifiable segment-related assets: CCS $ 3,790.6 $ 4,263.8 OWN 1,015.0 1,166.8 NICS 1,373.6 1,338.1 ANS 1,975.9 2,632.6 Home 697.5 1,379.3 Total identifiable segment-related assets 8,852.6 10,780.6 Reconciliation to total assets: Cash and cash equivalents 518.9 398.1 Deferred income tax assets 694.1 506.7 Total assets $ 10,065.6 $ 11,685.4 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, 2023 2022 2023 2022 Net sales: CCS $ 632.5 $ 1,007.7 $ 2,154.2 $ 2,832.4 OWN 210.3 382.1 697.5 1,163.1 NICS 289.0 257.9 901.1 651.3 ANS 218.3 342.3 850.5 952.4 Home 249.4 391.4 916.1 1,311.0 Consolidated net sales $ 1,599.5 $ 2,381.4 $ 5,519.4 $ 6,910.2 Segment adjusted EBITDA: CCS $ 78.7 $ 188.2 $ 305.9 $ 455.6 OWN 45.3 82.2 146.6 228.6 NICS 63.0 24.7 195.9 ( 4.4 ) ANS 58.5 57.8 174.9 189.9 Home 3.1 ( 5.3 ) ( 3.1 ) 30.8 Total segment adjusted EBITDA 248.6 347.6 820.2 900.5 Amortization of intangible assets ( 101.3 ) ( 134.6 ) ( 329.1 ) ( 414.3 ) Restructuring costs, net ( 20.4 ) ( 2.5 ) ( 51.8 ) ( 53.1 ) Equity-based compensation ( 11.3 ) ( 16.4 ) ( 35.5 ) ( 45.3 ) Asset impairments ( 895.1 ) — ( 895.1 ) — Transaction, transformation and integration costs ( 16.8 ) ( 5.9 ) ( 25.9 ) ( 36.4 ) Acquisition accounting adjustments ( 0.6 ) ( 1.8 ) ( 1.9 ) ( 5.4 ) Patent claims and litigation settlements 3.5 ( 0.1 ) 14.5 ( 2.3 ) Recovery (reserve) of Russian accounts receivable — 1.1 2.0 ( 2.7 ) Cyber incident costs ( 1.7 ) — ( 5.8 ) — Depreciation ( 30.7 ) ( 31.8 ) ( 92.7 ) ( 95.5 ) Consolidated operating income (loss) $ ( 825.8 ) $ 155.6 $ ( 601.1 ) $ 245.5 Depreciation expense: CCS $ 15.6 $ 14.8 $ 46.2 $ 43.2 OWN 3.1 3.5 9.6 10.9 NICS 3.3 3.6 10.0 11.5 ANS 5.3 5.7 16.6 17.0 Home 3.4 4.2 10.3 12.9 Consolidated depreciation expense $ 30.7 $ 31.8 $ 92.7 $ 95.5 Additions to property, plant and equipment: CCS $ 4.5 $ 16.2 $ 23.8 $ 51.8 OWN 0.6 2.1 3.2 7.3 NICS 1.2 1.7 3.6 5.4 ANS 1.4 2.2 9.2 8.7 Home 1.0 1.4 4.1 5.5 Consolidated additions to property, plant and equipment $ 8.7 $ 23.6 $ 43.9 $ 78.7 Sales to customers located outside of the U.S. comprised 40.1 % and 38.7 % of total net sales for the three and nine months ended September 30, 2023, respectively, compared to 37.2 % and 38.3 % of total net sales for the three and nine months ended September 30, 2022, respectively. Sales by geographic region, based on the destination of product shipments or service provided, were as follows: Three Months Ended September 30, 2023 CCS OWN NICS ANS Home Total Geographic Region: United States $ 385.5 $ 126.2 $ 180.9 $ 172.9 $ 91.9 $ 957.4 Europe, Middle East and Africa 100.6 52.4 73.0 15.2 56.6 297.8 Asia Pacific 99.4 24.2 25.0 6.1 17.5 172.2 Caribbean and Latin America 34.2 5.3 2.7 13.4 19.3 74.9 Canada 12.8 2.2 7.4 10.7 64.1 97.2 Consolidated net sales $ 632.5 $ 210.3 $ 289.0 $ 218.3 $ 249.4 $ 1,599.5 Three Months Ended September 30, 2022 CCS OWN NICS ANS Home Total Geographic Region: United States $ 678.6 $ 277.0 $ 146.7 $ 235.1 $ 157.7 $ 1,495.1 Europe, Middle East and Africa 153.5 52.7 68.7 29.9 91.2 396.0 Asia Pacific 102.3 36.4 30.7 19.0 22.5 210.9 Caribbean and Latin America 44.8 8.8 6.3 44.1 44.6 148.6 Canada 28.5 7.2 5.5 14.2 75.4 130.8 Consolidated net sales $ 1,007.7 $ 382.1 $ 257.9 $ 342.3 $ 391.4 $ 2,381.4 Nine Months Ended September 30, 2023 CCS OWN NICS ANS Home Total Geographic Region: United States $ 1,394.8 $ 450.4 $ 532.8 $ 631.8 $ 371.0 $ 3,380.8 Europe, Middle East and Africa 317.9 159.5 233.9 77.0 205.8 994.1 Asia Pacific 286.8 67.9 100.5 17.2 53.7 526.1 Caribbean and Latin America 112.4 12.9 17.6 81.3 86.8 311.0 Canada 42.3 6.8 16.3 43.2 198.8 307.4 Consolidated net sales $ 2,154.2 $ 697.5 $ 901.1 $ 850.5 $ 916.1 $ 5,519.4 Nine Months Ended September 30, 2022 CCS OWN NICS ANS Home Total Geographic Region: United States $ 1,858.5 $ 840.1 $ 372.9 $ 630.0 $ 565.0 $ 4,266.5 Europe, Middle East and Africa 430.5 172.2 171.4 88.3 318.4 1,180.8 Asia Pacific 330.6 94.8 81.8 64.6 65.6 637.4 Caribbean and Latin America 138.7 25.3 15.6 131.0 150.7 461.3 Canada 74.1 30.7 9.6 38.5 211.3 364.2 Consolidated net sales $ 2,832.4 $ 1,163.1 $ 651.3 $ 952.4 $ 1,311.0 $ 6,910.2 |
Restructuring Costs, Net
Restructuring Costs, Net | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs, Net | 8. RESTRUCTURING COSTS, 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 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, net on the Condensed Consolidated Statements of Operations, by segment, was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 CCS $ 16.2 $ 0.7 $ 14.2 $ 14.1 OWN 1.3 1.1 5.2 20.6 NICS ( 1.0 ) 0.4 10.0 9.8 ANS 2.8 0.2 13.6 7.5 Home 1.1 0.1 8.8 1.1 Total $ 20.4 $ 2.5 $ 51.8 $ 53.1 Restructuring liabilities were included in the Company’s Condensed Consolidated Balance Sheets as follows: September 30, December 31, Accrued and other liabilities $ 35.2 $ 58.9 Other noncurrent liabilities 0.1 0.5 Total restructuring liabilities $ 35.3 $ 59.4 CommScope NEXT Restructuring Actions In the first quarter of 2021, the Company announced and began implementing a business transformation initiative called CommScope NEXT. This ongoing initiative is designed to drive shareholder value through three pillars: profitable growth, operational efficiency and portfolio optimization. The activity within the liability established for CommScope NEXT restructuring actions was as follows: Employee-Related Costs Other Total Balance at June 30, 2023 $ 56.8 $ — $ 56.8 Additional expense, net 19.0 1.6 20.6 Cash paid ( 40.1 ) — ( 40.1 ) Foreign exchange and other non-cash items ( 0.8 ) ( 1.6 ) ( 2.4 ) Balance at September 30, 2023 $ 34.9 $ — $ 34.9 Balance at December 31, 2022 $ 58.7 $ — $ 58.7 Additional expense (reversals), net 66.2 ( 14.0 ) 52.2 Cash received (paid) ( 89.9 ) 38.6 ( 51.3 ) Foreign exchange and other non-cash items ( 0.1 ) ( 24.6 ) ( 24.7 ) Balance at September 30, 2023 $ 34.9 $ — $ 34.9 CommScope NEXT actions to date have included the closure of an international manufacturing facility, as well as headcount reductions in other manufacturing locations and engineering, marketing, sales and administrative functions and asset impairments associated with restructuring related actions. During the three months ended September 30, 2023, additional expenses were recorded for severance and other costs, which included an asset impairment for certain leased real estate. During the first quarter of 2023, the Company completed the sale of an international manufacturing facility which is reflected in the nine months ended September 30, 2023 . The Company recorded net proceeds of $ 38.4 million related to the sale, resulting in a gain on the sale of $ 20.2 million that was partially offset by severance and other costs, and included in the other category in the table above and in restructuring costs, net on the Condensed Consolidated Statements of Operations. The Company simultaneously entered into a sale leaseback transaction whereby a minor portion of the building used to support research and development operations was leased back for a term of nine years with annual payments that range from € 800 thousand to € 1.5 million. The Company determined the lease to be an operating lease and upon entering into the lease, recognized a right of use asset and operating lease liability of € 7.5 million based on the present value of the minimum lease payments discounted using an incremental borrowing rate of 7.15 %. The Company has recognized restructuring charges of $ 181.6 million to date related to CommScope NEXT actions. The Company expects to make cash payments of $ 21.3 million during the remainder of 2023 and additional cash payments of $ 13.6 million in 2024 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 could be material. |
Series A Convertible Preferred
Series A Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2023 | |
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 antidilution and other adjustments. As of September 30, 2023 , the Company had authorized 1,200,000 shares of the Convertible Preferred Stock. 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. For the three and nine months ended September 30, 2023, the Company paid dividends in-kind of $ 15.5 million and $ 45.9 million, respectively. The Company paid cash dividends of $ 14.9 million during the three months ended September 30, 2022. During the nine months ended September 30, 2022, in addition to the cash dividends of $ 14.9 million, the Company paid dividends in-kind of $ 29.2 million. The dividends paid in-kind were recorded as additional Convertible Preferred Stock in the Condensed Consolidated Balance Sheets. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 10. STOCKHOLDERS’ EQUITY Equity-Based Compensation Plans As of September 30, 2023 , $ 89.5 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, 2023. 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, 2023 2022 2023 2022 Selling, general and administrative $ 7.8 $ 9.2 $ 22.9 $ 25.6 Research and development 2.3 5.0 8.4 13.6 Cost of sales 1.2 2.2 4.2 6.1 Total equity-based compensation expense $ 11.3 $ 16.4 $ 35.5 $ 45.3 Restricted Stock Units RSUs entitle the holder to shares of common stock after a vesting period of generally three years . 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, 2023 12.6 $ 6.90 Forfeited ( 0.4 ) $ 8.64 Non-vested share units at September 30, 2023 12.2 $ 6.83 Non-vested share units at December 31, 2022 11.2 $ 10.66 Granted 7.5 $ 4.58 Vested and shares issued ( 5.2 ) $ 11.10 Forfeited ( 1.3 ) $ 10.06 Non-vested share units at September 30, 2023 12.2 $ 6.83 Performance Share Units PSUs are stock awards in which the number of shares ultimately received by the employee depends on achievement towards a performance measure. Certain of CommScope’s PSUs have an internal performance measure, and the awards vest at the end of three years. The number of shares issued under these awards can vary between 0 % and 300 % of the number of PSUs granted. The fair value of these awards is determined on the date of grant based on the Company’s stock price. CommScope also has PSUs with a market condition performance measure based on stock price milestones over a three-year period. The number of shares issued under these awards can vary between 0 % to 100 % of the number of PSUs granted. In addition, the Company has PSUs with a market condition based on the Company's total stockholder return (TSR) ranking relative to the S&P 500 TSR for a three-year period. The number of shares issued under these awards can vary between 0 % to 200 % of the number of PSUs granted. The Company uses a Monte Carlo simulation model to estimate the fair value of PSUs with a market condition performance measure 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 the awards granted: Nine Months Ended 2023 2022 Risk-free interest rate 4.4 % 1.7 % Expected volatility 67.2 % 61.2 % Weighted average fair value at grant date $ 9.19 $ 11.21 The following table summarizes the PSU activity (in millions, except per share data): Performance Weighted Non-vested share units at June 30, 2023 6.8 $ 6.72 Forfeited ( 0.1 ) $ 8.72 Non-vested share units at September 30, 2023 6.7 $ 6.69 Non-vested share units at December 31, 2022 2.9 $ 8.14 Granted 4.0 $ 5.78 Forfeited ( 0.2 ) $ 9.48 Non-vested share units at September 30, 2023 6.7 $ 6.69 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. SUBSEQUENT EVENTS On October 2, 2023, the Company and Vantiva SA, a société anonyme organized under the Laws of France (Vantiva), entered into a Call Option Agreement pursuant to which the Company has granted Vantiva a binding call option to acquire the Company’s Home segment and substantially all of the associated segment assets and liabilities. The binding call option allows Vantiva’s works council to be informed and consulted prior to the exercise of the option, as is required in France. Vantiva is expected to exercise the call option upon completion of the consultation period. Upon exercise of the call option, the Company and Vantiva will enter into a Purchase Agreement pursuant to which Vantiva will acquire the Home segment in exchange for (i) a 25 % equity stake in Vantiva (determined on a fully diluted basis) and (ii) an earn-out of up to $ 100 million in the aggregate. The earn-out payments are contingent on Vantiva achieving adjusted EBITDA equal to or greater than € 400,000,000 for one or more of Vantiva’s first five fiscal years following the closing of the transaction. The earn-out payment with respect to any fiscal year will be subject to an additional annual cap, the amount of which will depend on certain elections made by the Company following Vantiva reaching the € 400,000,000 adjusted EBITDA threshold for the first time, and on Vantiva’s maintenance of certain liquidity levels (after giving effect to such payment). The closing of the transaction is subject to various conditions, including, among other things, required government approvals and the approval of certain aspects of the transaction by Vantiva’s shareholders. The divestiture of the Home segment is expected to meet the “held for sale” criteria in the fourth quarter of 2023, and the Company has determined that it represents a strategic shift that will have a major effect on the Company’s operations. As such, the results of operations, including any expected loss recognized, will be reclassified to discontinued operations on the Consolidated Statements of Operations and retrospectively for all periods presented beginning in the fourth quarter of 2023. In addition, the assets and liabilities will be presented separately on the Consolidated Balance Sheets for both current and prior periods beginning in the fourth quarter of 2023. The Company could incur a loss upon closing the transaction but is unable to estimate with certainty, pending determination of amounts to be transferred. The transaction is expected to close in the fourth quarter of 2023 or the first quarter of 2024. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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. The unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) 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, 2022 (the 2022 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 2022 Annual Report. There were no material changes in the Company’s significant accounting policies during the three or nine months ended September 30, 2023 . |
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, 2023 . Net sales to Comcast Corporation and affiliates (Comcast) accounted for 11 % of the Company's total net sales during the three months ended September 30, 2022. No direct customer accounted for 10 % or more of the Company’s total net sales during the nine months ended September 30, 2022 . Accounts receivable from Charter Communications, Inc. (Charter) represented approximately 10 % of accounts receivable as of September 30, 2023 . Other than Charter, 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, 2023 , 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, 2023 . |
Product Warranties | Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer assurance-type warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods, depending on 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 on the Condensed Consolidated Balance Sheets: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Product warranty accrual, beginning of period $ 50.5 $ 60.9 $ 55.0 $ 66.8 Provision for warranty claims 3.5 5.8 17.5 18.0 Warranty claims paid ( 10.1 ) ( 9.3 ) ( 28.8 ) ( 27.0 ) Foreign exchange ( 0.1 ) ( 0.4 ) 0.1 ( 0.8 ) Product warranty accrual, end of period $ 43.8 $ 57.0 $ 43.8 $ 57.0 |
Commitments and Contingencies | Third-Party Guarantees The Company was contingently liable under open standby letters of credit issued by its banks to support performance obligations of a third-party contractor that totaled $ 44.0 million as of September 30, 2023. These amounts represent an estimate of the maximum amounts the Company would expect to incur upon the contractual non-performance of the third-party contractor, but the Company also has cross-indemnities in place that may enable it to recover amounts in the event of non-performance by the third-party contractor. The Company believes the likelihood of having to perform under these guarantees is remote. There were no material amounts recorded in the condensed consolidated financial statements related to third-party guarantee agreements for the three or nine months ended September 30, 2023 or 2022 or as of September 30, 2023 or December 31, 2022. As of September 30, 2023, these instruments reduced the available borrowings under the senior secured asset-based revolving credit facility (the Revolving Credit Facility). Non-cancellable Purchase Obligations In July 2023, the Company entered into a long-term supply contract with a third party to secure the supply of certain raw materials. Under the terms of the contract, the Company will make advance payments through 2026 totaling $ 120.0 million (undiscounted) and based on meeting certain minimum purchase requirements through 2031, such advance payments will be credited and applied to future orders on a quarterly basis beginning in 2027 through 2031. The advance payments are capitalized as other noncurrent assets in the Condensed Consolidated Balance Sheets. The Company has committed to purchases of raw materials under this agreement beginning in 2023 and growing to a level of approximately $ 137 million per year by 2026 and continuing through 2032. Legal Proceedings The Company is party to certain intellectual property claims and also 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 or royalties, stop offering the relevant products and/or cease other activities. The Company may also be called upon to defend and 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, through settlement or trial, could be material and may vary significantly from the Company's estimates. From time to time, the Company may also be involved as a plaintiff in certain intellectual property claims. Gain contingencies, if any, are recognized when they are realized. The Company had liabilities of $ 25.4 million and $ 37.1 million as of September 30, 2023 and December 31, 2022 , respectively, 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 the process of settlement. For the three and nine months ended September 30, 2023, the Company recorded a $ 3.5 million gain related to the settlement of an intellectual property claim, and for the nine months ended September 30, 2023 , the Company also released $ 11.0 million in accrued liabilities related to an intellectual property claim that was settled at an amount that was lower than estimated. Charges related to intellectual property assertions were no t material for the three or nine months ended September 30, 2023 or 2022. The Company received $ 3.5 million during the three and nine months ended September 30, 2023 and paid $ 2.0 million during the nine months ended September 30, 2023 to settle intellectual property claims and assertions. The Company paid $ 11.2 million and $ 21.0 million during the three and nine months ended September 30, 2022, respectively, to settle intellectual property claims and assertions. The Company is also either a plaintiff or a defendant in certain other pending legal matters in the normal course of business. Management believes that, upon final disposition, none of these other pending legal matters will have a material adverse effect on the Company’s business or financial condition. 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. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company has utilized a hedging strategy to mitigate a portion of the exposure to changes in cash flows resulting from variable interest rates on the senior secured term loan due 2026 (2026 Term Loan). In conjunction with the amendment to its 2026 Term Loan due to reference rate reform, on June 28, 2023, the Company settled its cash flow hedges with a notional value of $ 300.0 million and received cash of $ 6.8 million which is included within operating cash flow activity in accordance with the Company's accounting policy. The cash flow hedges were derecognized, and the gain of $ 6.1 million remaining as a component of accumulated comprehensive loss in the Condensed Consolidated Balance Sheets will continue to be reclassified to earnings through interest expense as the interest payments are made on the 2026 Term Loan unless the forecasted hedged transaction becomes probable of not occurring. See Note 5 for further discussion of the amendment to the 2026 Term Loan. Following the amendment to the 2026 Term Loan and settlement of the cash flow hedges noted above, during the three months ended September 30, 2023, the Company reenacted its hedging strategy to mitigate the interest rate risk from its variable rate debt, initially associated with its amended 2026 Term Loan and extending to future borrowings or debt issued, to fix a portion of the future interest cash flows by designating qualifying receive-variable and pay-fixed interest rate swaps as a cash flow hedge for accounting and financial reporting purposes. The total notional amount of the interest rate swap derivatives as of September 30, 2023 was $ 700.0 million with outstanding maturities up to thirty-six months. |
Asset Impairments | Asset Impairments Goodwill 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. See Notes 2 and 6 for discussion of goodwill impairment tests and charges during the three and nine months ended September 30, 2023. There were no goodwill impairments identified during the three or nine months ended September 30, 2022. Considering the low headroom going forward for each of the Access Network Solutions (ANS) and Building and Data Center Connectivity (BDCC) reporting units, there is a risk for future impairment in the event of declines in general economic, market or business conditions or any significant unfavorable change in the forecasted cash flows, weighted average cost of capital or growth rates. If current and long-term projections for the ANS and BDCC reporting units are not realized or decrease materially, the Company may be required to recognize additional goodwill impairment charges, and these charges could be material to the Company's results of operations. Long-lived Assets Long-lived assets, which include property, plant and equipment, intangible assets with finite lives and right of use assets 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. See Notes 2 and 6 for discussion of definite-lived intangible asset impairment tests and charges during the three and nine months ended September 30, 2023. There were no additional definite-lived intangible or other long-lived asset impairments identified during the three or nine months ended September 30, 2023 or 2022, other than certain assets impaired as a result of restructuring actions. |
Income Taxes | Income Taxes For the three and nine months ended September 30, 2023, the Company recognized an income tax benefit of $ 158.6 million on a pretax loss of $ 987.3 million and an income tax benefit of $ 158.0 million on a pretax loss of $ 1,083.7 million, respectively. The Company’s tax benefit was less than the statutory rate of 21 % for the three and nine months ended September 30, 2023 primarily due to the unfavorable impact related to a goodwill impairment charge of $ 425.9 million for which minimal tax benefits were recorded. The Company's tax benefit was favorably impacted by $ 4.1 million related to tax law changes for the three and nine months ended September 30, 2023. In addition to the unfavorable impact of the goodwill impairment charge mentioned above, for the nine months ended September 30, 2023, the Company's tax benefit was also unfavorably impacted by e xcess tax costs of $ 7.1 million related to equity compensation awards but favorably impacted by $ 9.6 million related to the release of various uncertain tax positions . For the three and nine months ended September 30, 2022, the Company recognized a tax benefit of $ 12.2 million on pretax income of $ 10.7 million and $ 4.2 million of income tax expense on a pretax loss of $ 173.8 million, respectively. For the three months ended September 30, 2022, the Company’s tax benefit was driven by the impacts of federal tax credits, partially offset by unfavorable impacts of U.S. anti-deferral provisions, non-creditable withholding taxes and $ 3.7 million of tax expense related to state law changes. For the nine months ended September 30, 2022, the Company's tax expense was driven by the unfavorable impacts of U.S. anti-deferral provisions, non-creditable withholding taxes and the tax expense related to state law changes, partially offset by the impacts of federal tax credits. |
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, 2023 , 18.9 million and 17.2 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, 2023, 0.6 million and 2.0 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss attributable to common stockholders position. For the three and nine months ended September 30, 2022, 7.7 million and 11.6 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 nine months ended September 30, 2022, 2.6 million shares would have been considered dilutive if the Company had not been in a net loss attributable to common stockholders position. For the three and nine months ended September 30, 2023 , 41.1 million and 40.6 million, respectively, 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, 2022 , 39.5 and 38.9 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were antidilutive. For the nine months ended September 30, 2022, these shares may have been considered dilutive if the Company had not been in a net loss attributable to common stockholders 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, 2023 2022 2023 2022 Numerator: Net income (loss) $ ( 828.7 ) $ 22.9 $ ( 925.7 ) $ ( 178.0 ) Dividends on Series A convertible preferred stock ( 15.5 ) ( 14.9 ) ( 45.9 ) ( 44.1 ) Net income (loss) attributable to common stockholders $ ( 844.2 ) $ 8.0 $ ( 971.6 ) $ ( 222.1 ) Denominator: Weighted average common shares outstanding – basic 211.9 208.2 210.4 207.1 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — 3.1 — — Weighted average common shares outstanding – diluted 211.9 211.3 210.4 207.1 Earnings (loss) per share: Basic $ ( 3.98 ) $ 0.04 $ ( 4.62 ) $ ( 1.07 ) Diluted $ ( 3.98 ) $ 0.04 $ ( 4.62 ) $ ( 1.07 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted During the Nine Months Ended September 30, 2023 On January 1, 2023, the Company adopted Accounting Standards Update (ASU) No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations . The new guidance improves the transparency of supplier finance programs by requiring that a buyer in a supplier finance program disclose sufficient qualitative and quantitative information about the program to allow a user of its financial statements to understand the program's nature, activity during the period, changes from period to period and potential effect on an entity's financial statements. This guidance has been applied retrospectively to all periods in which a balance sheet is presented, except for the requirement to disclose rollforward information, which is effective prospectively for the Company as of January 1, 2024. The impact of adopting this new guidance was not material to the condensed consolidated financial statements. In June 2023, the Company adopted ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and the related updates, ASU No. 2021-01 , Reference Rate Reform (Topic 848): Scope and ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . Together, the ASUs provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The Company adopted the reference rate reform guidance in connection with its amendment of the 2026 Term Loan on June 8, 2023 to transition from the Eurodollar Rate based on LIBOR to a Secured Overnight Financing Rate (SOFR), effective as of July 1, 2023, as the reference interest rate in anticipation of the cessation of LIBOR in 2023 (see Note 5 for further discussion). The impact of adopting this guidance was not material to the condensed consolidated financial statements. The Company continues to evaluate and monitor developments and its assessment of this guidance during the LIBOR transition period. |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Activity in Product Warranty Accrual, Included in Accrued and Other Liabilities and Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets | The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities on the Condensed Consolidated Balance Sheets: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Product warranty accrual, beginning of period $ 50.5 $ 60.9 $ 55.0 $ 66.8 Provision for warranty claims 3.5 5.8 17.5 18.0 Warranty claims paid ( 10.1 ) ( 9.3 ) ( 28.8 ) ( 27.0 ) Foreign exchange ( 0.1 ) ( 0.4 ) 0.1 ( 0.8 ) Product warranty accrual, end of period $ 43.8 $ 57.0 $ 43.8 $ 57.0 |
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, 2023 2022 2023 2022 Numerator: Net income (loss) $ ( 828.7 ) $ 22.9 $ ( 925.7 ) $ ( 178.0 ) Dividends on Series A convertible preferred stock ( 15.5 ) ( 14.9 ) ( 45.9 ) ( 44.1 ) Net income (loss) attributable to common stockholders $ ( 844.2 ) $ 8.0 $ ( 971.6 ) $ ( 222.1 ) Denominator: Weighted average common shares outstanding – basic 211.9 208.2 210.4 207.1 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — 3.1 — — Weighted average common shares outstanding – diluted 211.9 211.3 210.4 207.1 Earnings (loss) per share: Basic $ ( 3.98 ) $ 0.04 $ ( 4.62 ) $ ( 1.07 ) Diluted $ ( 3.98 ) $ 0.04 $ ( 4.62 ) $ ( 1.07 ) |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segment | The following table presents the activity in goodwill by reportable segment: December 31, 2022 Activity September 30, 2023 Goodwill Accumulated Impairment Losses Total Additions (Deductions) Impairment Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total CCS $ 2,280.9 $ ( 51.5 ) $ 2,229.4 $ — $ — $ ( 6.7 ) $ 2,274.2 $ ( 51.5 ) $ 2,222.7 OWN 660.3 ( 159.5 ) 500.8 — — ( 1.5 ) 658.8 ( 159.5 ) 499.3 NICS 649.4 ( 41.2 ) 608.2 — — ( 1.3 ) 648.1 ( 41.2 ) 606.9 ANS 1,995.7 ( 1,261.7 ) 734.0 — ( 425.9 ) ( 1.3 ) 1,994.4 ( 1,687.6 ) 306.8 Home 413.2 ( 413.2 ) — — — — 413.2 ( 413.2 ) — Total $ 5,999.5 $ ( 1,927.1 ) $ 4,072.4 $ — $ ( 425.9 ) $ ( 10.8 ) $ 5,988.7 $ ( 2,353.0 ) $ 3,635.7 Primarily due to a sustained decrease in the market value of the Company’s debt and common stock affecting the overall business and changes in expected future cash flows due to reduced earnings forecasts and current macroeconomic conditions, including a rising interest rate environment, during the third quarter of 2023, the Company concluded that a triggering event occurred and performed an interim quantitative goodwill impairment test as of September 30, 2023 for its ANS and BDCC reporting units, which were most sensitive to negative performance and outlook, to compare the fair values of the reporting units to their carrying amounts, including the goodwill. As a result, for the three and nine months ended September 30, 2023, the Company recorded a goodwill impairment charge of $ 425.9 million in asset impairments in the Condensed Consolidated Statements of Operations to partially write down the carrying amount of the ANS reporting unit goodwill. There was no impairment identified in the BDCC reporting unit as of September 30, 2023. The BDCC reporting unit is in the CCS reportable segment. See Note 6 for further discussion of the assumptions used in the valuation. |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Allowance for doubtful accounts, beginning of period $ 63.0 $ 61.6 $ 82.8 $ 63.7 Provision 4.4 1.4 7.4 2.2 Write-offs ( 0.6 ) ( 0.8 ) ( 23.8 ) ( 1.9 ) Foreign exchange and other ( 0.5 ) ( 1.3 ) ( 0.1 ) ( 3.1 ) Allowance for doubtful accounts, end of period $ 66.3 $ 60.9 $ 66.3 $ 60.9 |
Summary of the 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: Contract Balance Type Balance Sheet Location September 30, December 31, 2022 Unbilled accounts receivable Accounts receivable, net of allowance for doubtful accounts $ 39.5 $ 35.3 Deferred revenue - current Accrued and other liabilities $ 102.0 $ 97.9 Deferred revenue - noncurrent Other noncurrent liabilities 69.8 63.4 Total contract liabilities $ 171.8 $ 161.3 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable | Accounts Receivable September 30, December 31, Accounts receivable - trade $ 1,180.0 $ 1,545.3 Accounts receivable - other 30.8 61.1 Allowance for doubtful accounts ( 66.3 ) ( 82.8 ) Total accounts receivable, net $ 1,144.5 $ 1,523.6 |
Inventories | Inventories September 30, December 31, Raw materials $ 492.3 $ 535.8 Work in process 176.9 212.7 Finished goods 695.4 839.6 Total inventories, net $ 1,364.6 $ 1,588.1 |
Accrued and Other Liabilities | Accrued and Other Liabilities September 30, December 31, Compensation and employee benefit liabilities $ 191.0 $ 301.3 Deferred revenue 102.0 97.9 Accrued interest 56.9 118.1 Operating lease liabilities 40.9 47.7 Product warranty accrual 36.1 44.8 Restructuring liabilities 35.2 58.9 Contract manufacturer inventory repurchase obligation 13.5 79.1 Other 243.6 302.2 Total accrued and other liabilities $ 719.2 $ 1,050.0 |
Operating Lease Information | Operating Lease Information Balance Sheet Location September 30, December 31, Right of use assets Other noncurrent assets $ 167.5 $ 149.0 Lease liabilities - current Accrued and other liabilities $ 40.9 $ 47.7 Lease liabilities - noncurrent Other noncurrent liabilities 146.6 123.5 Total lease liabilities $ 187.5 $ 171.2 |
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, 2023 2022 2023 2022 Foreign currency translation Balance at beginning of period $ ( 249.6 ) $ ( 276.2 ) $ ( 270.3 ) $ ( 165.8 ) Other comprehensive loss ( 45.1 ) ( 94.5 ) ( 24.4 ) ( 204.9 ) Balance at end of period $ ( 294.7 ) $ ( 370.7 ) $ ( 294.7 ) $ ( 370.7 ) Defined benefit plan activity Balance at beginning of period $ ( 14.9 ) $ ( 14.7 ) $ ( 14.8 ) $ ( 13.4 ) Other comprehensive income (loss) 0.1 — — ( 1.6 ) Amounts reclassified from AOCL — — — 0.3 Balance at end of period $ ( 14.8 ) $ ( 14.7 ) $ ( 14.8 ) $ ( 14.7 ) Hedging instruments Balance at beginning of period $ ( 11.7 ) $ ( 15.4 ) $ ( 11.2 ) $ ( 27.2 ) Other comprehensive income 3.8 3.7 3.3 15.5 Balance at end of period $ ( 7.9 ) $ ( 11.7 ) $ ( 7.9 ) $ ( 11.7 ) Net AOCL at end of period $ ( 317.4 ) $ ( 397.1 ) $ ( 317.4 ) $ ( 397.1 ) |
Cash Flow Information | Cash Flow Information Nine Months Ended September 30, 2023 2022 Cash paid during the period for: Income taxes, net of refunds $ 85.5 $ 91.7 Interest 546.6 469.6 |
Financing (Tables)
Financing (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Debt | September 30, December 31, 7.125 % senior notes due July 2028 $ 695.7 $ 700.0 5.00 % senior notes due March 2027 750.0 750.0 8.25 % senior notes due March 2027 918.6 1,000.0 6.00 % senior notes due June 2025 1,274.6 1,300.0 4.75 % senior secured notes due September 2029 1,250.0 1,250.0 6.00 % senior secured notes due March 2026 1,500.0 1,500.0 Senior secured term loan due April 2026 3,072.0 3,096.0 Senior secured revolving credit facility — — Total principal amount of debt 9,460.9 9,596.0 Less: Original issue discount, net of amortization ( 12.7 ) ( 15.9 ) Less: Debt issuance costs, net of amortization ( 62.9 ) ( 78.5 ) Less: Current portion ( 32.0 ) ( 32.0 ) Total long-term debt $ 9,353.3 $ 9,469.6 |
Summary of Debt Repurchase Activity | The table below summarizes the debt repurchase activity during the nine months ended September 30, 2023: Aggregate Reacquisition 7.125 % senior notes due July 2028 $ 4.3 $ 3.2 8.25 % senior notes due March 2027 81.4 64.6 6.00 % senior notes due June 2025 25.4 24.3 Total $ 111.1 $ 92.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 swap contracts and foreign currency contracts as of September 30, 2023 and December 31, 2022, are as follows: September 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value Valuation Assets: Foreign currency contracts $ 2.1 $ 2.1 $ 9.9 $ 9.9 Level 2 Interest rate swap contracts 6.3 6.3 8.6 8.6 Level 2 Liabilities: 7.125% senior notes due 2028 $ 695.7 $ 407.0 $ 700.0 $ 502.6 Level 2 5.00% senior notes due 2027 750.0 418.1 750.0 513.4 Level 2 8.25% senior notes due 2027 918.6 601.0 1,000.0 780.8 Level 2 6.00% senior notes due 2025 1,274.6 1,194.9 1,300.0 1,183.4 Level 2 4.75% senior secured notes due 2029 1,250.0 909.4 1,250.0 1,000.0 Level 2 6.00% senior secured notes due 2026 1,500.0 1,399.1 1,500.0 1,383.3 Level 2 Senior secured term loan due 2026 3,072.0 2,810.9 3,096.0 2,925.7 Level 2 Foreign currency contracts 14.0 14.0 6.5 6.5 Level 2 |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment | The following table provides summary financial information by reportable segment: September 30, December 31, Identifiable segment-related assets: CCS $ 3,790.6 $ 4,263.8 OWN 1,015.0 1,166.8 NICS 1,373.6 1,338.1 ANS 1,975.9 2,632.6 Home 697.5 1,379.3 Total identifiable segment-related assets 8,852.6 10,780.6 Reconciliation to total assets: Cash and cash equivalents 518.9 398.1 Deferred income tax assets 694.1 506.7 Total assets $ 10,065.6 $ 11,685.4 |
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, 2023 2022 2023 2022 Net sales: CCS $ 632.5 $ 1,007.7 $ 2,154.2 $ 2,832.4 OWN 210.3 382.1 697.5 1,163.1 NICS 289.0 257.9 901.1 651.3 ANS 218.3 342.3 850.5 952.4 Home 249.4 391.4 916.1 1,311.0 Consolidated net sales $ 1,599.5 $ 2,381.4 $ 5,519.4 $ 6,910.2 Segment adjusted EBITDA: CCS $ 78.7 $ 188.2 $ 305.9 $ 455.6 OWN 45.3 82.2 146.6 228.6 NICS 63.0 24.7 195.9 ( 4.4 ) ANS 58.5 57.8 174.9 189.9 Home 3.1 ( 5.3 ) ( 3.1 ) 30.8 Total segment adjusted EBITDA 248.6 347.6 820.2 900.5 Amortization of intangible assets ( 101.3 ) ( 134.6 ) ( 329.1 ) ( 414.3 ) Restructuring costs, net ( 20.4 ) ( 2.5 ) ( 51.8 ) ( 53.1 ) Equity-based compensation ( 11.3 ) ( 16.4 ) ( 35.5 ) ( 45.3 ) Asset impairments ( 895.1 ) — ( 895.1 ) — Transaction, transformation and integration costs ( 16.8 ) ( 5.9 ) ( 25.9 ) ( 36.4 ) Acquisition accounting adjustments ( 0.6 ) ( 1.8 ) ( 1.9 ) ( 5.4 ) Patent claims and litigation settlements 3.5 ( 0.1 ) 14.5 ( 2.3 ) Recovery (reserve) of Russian accounts receivable — 1.1 2.0 ( 2.7 ) Cyber incident costs ( 1.7 ) — ( 5.8 ) — Depreciation ( 30.7 ) ( 31.8 ) ( 92.7 ) ( 95.5 ) Consolidated operating income (loss) $ ( 825.8 ) $ 155.6 $ ( 601.1 ) $ 245.5 Depreciation expense: CCS $ 15.6 $ 14.8 $ 46.2 $ 43.2 OWN 3.1 3.5 9.6 10.9 NICS 3.3 3.6 10.0 11.5 ANS 5.3 5.7 16.6 17.0 Home 3.4 4.2 10.3 12.9 Consolidated depreciation expense $ 30.7 $ 31.8 $ 92.7 $ 95.5 Additions to property, plant and equipment: CCS $ 4.5 $ 16.2 $ 23.8 $ 51.8 OWN 0.6 2.1 3.2 7.3 NICS 1.2 1.7 3.6 5.4 ANS 1.4 2.2 9.2 8.7 Home 1.0 1.4 4.1 5.5 Consolidated additions to property, plant and equipment $ 8.7 $ 23.6 $ 43.9 $ 78.7 |
Summary of Net Sales by Reportable Segment, Disaggregated Based on Geographic Region | Sales by geographic region, based on the destination of product shipments or service provided, were as follows: Three Months Ended September 30, 2023 CCS OWN NICS ANS Home Total Geographic Region: United States $ 385.5 $ 126.2 $ 180.9 $ 172.9 $ 91.9 $ 957.4 Europe, Middle East and Africa 100.6 52.4 73.0 15.2 56.6 297.8 Asia Pacific 99.4 24.2 25.0 6.1 17.5 172.2 Caribbean and Latin America 34.2 5.3 2.7 13.4 19.3 74.9 Canada 12.8 2.2 7.4 10.7 64.1 97.2 Consolidated net sales $ 632.5 $ 210.3 $ 289.0 $ 218.3 $ 249.4 $ 1,599.5 Three Months Ended September 30, 2022 CCS OWN NICS ANS Home Total Geographic Region: United States $ 678.6 $ 277.0 $ 146.7 $ 235.1 $ 157.7 $ 1,495.1 Europe, Middle East and Africa 153.5 52.7 68.7 29.9 91.2 396.0 Asia Pacific 102.3 36.4 30.7 19.0 22.5 210.9 Caribbean and Latin America 44.8 8.8 6.3 44.1 44.6 148.6 Canada 28.5 7.2 5.5 14.2 75.4 130.8 Consolidated net sales $ 1,007.7 $ 382.1 $ 257.9 $ 342.3 $ 391.4 $ 2,381.4 Nine Months Ended September 30, 2023 CCS OWN NICS ANS Home Total Geographic Region: United States $ 1,394.8 $ 450.4 $ 532.8 $ 631.8 $ 371.0 $ 3,380.8 Europe, Middle East and Africa 317.9 159.5 233.9 77.0 205.8 994.1 Asia Pacific 286.8 67.9 100.5 17.2 53.7 526.1 Caribbean and Latin America 112.4 12.9 17.6 81.3 86.8 311.0 Canada 42.3 6.8 16.3 43.2 198.8 307.4 Consolidated net sales $ 2,154.2 $ 697.5 $ 901.1 $ 850.5 $ 916.1 $ 5,519.4 Nine Months Ended September 30, 2022 CCS OWN NICS ANS Home Total Geographic Region: United States $ 1,858.5 $ 840.1 $ 372.9 $ 630.0 $ 565.0 $ 4,266.5 Europe, Middle East and Africa 430.5 172.2 171.4 88.3 318.4 1,180.8 Asia Pacific 330.6 94.8 81.8 64.6 65.6 637.4 Caribbean and Latin America 138.7 25.3 15.6 131.0 150.7 461.3 Canada 74.1 30.7 9.6 38.5 211.3 364.2 Consolidated net sales $ 2,832.4 $ 1,163.1 $ 651.3 $ 952.4 $ 1,311.0 $ 6,910.2 |
Restructuring Costs, Net (Table
Restructuring Costs, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Company's Net Pretax Restructuring Charges | The Company’s net pretax restructuring activity included in restructuring costs, net on the Condensed Consolidated Statements of Operations, by segment, was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 CCS $ 16.2 $ 0.7 $ 14.2 $ 14.1 OWN 1.3 1.1 5.2 20.6 NICS ( 1.0 ) 0.4 10.0 9.8 ANS 2.8 0.2 13.6 7.5 Home 1.1 0.1 8.8 1.1 Total $ 20.4 $ 2.5 $ 51.8 $ 53.1 |
Restructuring Reserves Included in Company's 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 $ 35.2 $ 58.9 Other noncurrent liabilities 0.1 0.5 Total restructuring liabilities $ 35.3 $ 59.4 |
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-Related Costs Other Total Balance at June 30, 2023 $ 56.8 $ — $ 56.8 Additional expense, net 19.0 1.6 20.6 Cash paid ( 40.1 ) — ( 40.1 ) Foreign exchange and other non-cash items ( 0.8 ) ( 1.6 ) ( 2.4 ) Balance at September 30, 2023 $ 34.9 $ — $ 34.9 Balance at December 31, 2022 $ 58.7 $ — $ 58.7 Additional expense (reversals), net 66.2 ( 14.0 ) 52.2 Cash received (paid) ( 89.9 ) 38.6 ( 51.3 ) Foreign exchange and other non-cash items ( 0.1 ) ( 24.6 ) ( 24.7 ) Balance at September 30, 2023 $ 34.9 $ — $ 34.9 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 2023 2022 Selling, general and administrative $ 7.8 $ 9.2 $ 22.9 $ 25.6 Research and development 2.3 5.0 8.4 13.6 Cost of sales 1.2 2.2 4.2 6.1 Total equity-based compensation expense $ 11.3 $ 16.4 $ 35.5 $ 45.3 |
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, 2023 12.6 $ 6.90 Forfeited ( 0.4 ) $ 8.64 Non-vested share units at September 30, 2023 12.2 $ 6.83 Non-vested share units at December 31, 2022 11.2 $ 10.66 Granted 7.5 $ 4.58 Vested and shares issued ( 5.2 ) $ 11.10 Forfeited ( 1.3 ) $ 10.06 Non-vested share units at September 30, 2023 12.2 $ 6.83 |
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 the awards granted: Nine Months Ended 2023 2022 Risk-free interest rate 4.4 % 1.7 % Expected volatility 67.2 % 61.2 % Weighted average fair value at grant date $ 9.19 $ 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, 2023 6.8 $ 6.72 Forfeited ( 0.1 ) $ 8.72 Non-vested share units at September 30, 2023 6.7 $ 6.69 Non-vested share units at December 31, 2022 2.9 $ 8.14 Granted 4.0 $ 5.78 Forfeited ( 0.2 ) $ 9.48 Non-vested share units at September 30, 2023 6.7 $ 6.69 |
Background and Basis of Prese_4
Background and Basis of Presentation - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 28, 2023 USD ($) | Jul. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) Customer shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2023 USD ($) Customer shares | Sep. 30, 2022 USD ($) shares | Dec. 31, 2022 USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Percentage of convertible preferred stock owned | 100% | 100% | |||||
Related party transactions | $ 0 | $ 0 | |||||
Guarantee agreements amount | 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Advance payment on long term supply | $ 120 | ||||||
Increase in purchase of raw material | $ 137 | ||||||
Product warranty term | These product warranties extend over various periods, depending on the product subject to the warranty and the terms of the individual agreements | ||||||
Loss contingency liability amount | 25.4 | $ 25.4 | $ 37.1 | ||||
Loss contingency accrual | 11 | 11 | |||||
Payments to settle intellectual property claims and assertions | 11.2 | 2 | 21 | ||||
Loss contingency receivable | 3.5 | 3.5 | |||||
Intangible asset impairment charges, excluding goodwill | 0 | 0 | 0 | 0 | |||
Impairment of goodwill | 0 | 425.9 | 0 | ||||
Goodwill impairment Charges | 425.9 | ||||||
Income tax (expense) benefit | 158.6 | 12.2 | 158 | (4.2) | |||
Tax Benefit | 4.1 | 4.1 | |||||
Pre-tax net loss for the period | (987.3) | 10.7 | (1,083.7) | (173.8) | |||
Asset impairments | $ 895.1 | $ 0 | 895.1 | $ 0 | |||
Excess tax costs related to equity compensation awards | 7.1 | ||||||
Tax benefits related uncertain tax positions | $ 9.6 | ||||||
Statutory income tax rate | 21% | 21% | |||||
Amount of outstanding equity based awards not included in computation of diluted EPS | shares | 7,700,000 | 11,600,000 | |||||
Dilutive effect of equity-based awards | shares | 0 | 3.1 | 0 | 0 | |||
Tax expense related to state law changes | $ 3.7 | ||||||
Intellectual Property [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Loss contingency accrual | $ 3.5 | $ 3.5 | |||||
2026 Term Loan [Member] | Cash Flow Hedging [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Notional value | $ 300 | 700 | 700 | ||||
Gain (loss) from cash flow hedges derecognized | 6.1 | ||||||
Proceeds from derivatives | $ 6.8 | ||||||
Guarantees [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Letters of credit outstanding amount | $ 44 | $ 44 | |||||
Convertible Preferred Stock [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Dilutive effect of equity-based awards | shares | 41,100,000 | 39,500,000 | 40,600,000 | 38,900,000 | |||
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 | 18,900,000 | 17,200,000 | |||||
Dilutive effect of equity-based awards | shares | 600,000 | 2,000,000 | 2,600,000 | ||||
Cost of Sales [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Loss contingency portion recorded | $ 0 | $ 0 | $ 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] | Accounts Receivable [Member] | Charter Communications [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Concentration risk percentage | 10% | ||||||
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% | ||||||
Customer Concentration Risk [Member] | Minimum [Member] | Sales Revenue, Net [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Concentration risk percentage | 10% | 10% | 10% | ||||
Customer Concentration Risk [Member] | Minimum [Member] | Accounts Receivable [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Concentration risk percentage | 10% |
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 on the Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Product warranty accrual, beginning of period | $ 50.5 | $ 60.9 | $ 55 | $ 66.8 |
Provision for warranty claims | 3.5 | 5.8 | 17.5 | 18 |
Warranty claims paid | (10.1) | (9.3) | (28.8) | (27) |
Foreign exchange | (0.1) | (0.4) | 0.1 | (0.8) |
Product warranty accrual, end of period | $ 43.8 | $ 57 | $ 43.8 | $ 57 |
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, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income (loss) | $ (828.7) | $ 22.9 | $ (925.7) | $ (178) |
Dividends on Series A convertible preferred stock | (15.5) | (14.9) | (45.9) | (44.1) |
Net income (loss) attributable to common stockholders | $ (844.2) | $ 8 | $ (971.6) | $ (222.1) |
Denominator: | ||||
Weighted average common shares outstanding - basic | 211.9 | 208.2 | 210.4 | 207.1 |
Dilutive effect of as-if converted Series A convertible preferred stock | 0 | 0 | 0 | 0 |
Dilutive effect of equity-based awards | 0 | 3.1 | 0 | 0 |
Weighted average common shares outstanding - diluted | 211.9 | 211.3 | 210.4 | 207.1 |
Earnings (loss) per share: | ||||
Basic | $ (3.98) | $ 0.04 | $ (4.62) | $ (1.07) |
Diluted | $ (3.98) | $ 0.04 | $ (4.62) | $ (1.07) |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Impairment | $ 0 | $ (425.9) | $ 0 | |
Intangible asset impairment charges, excluding goodwill | $ 0 | $ 0 | 0 | $ 0 |
A N S [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Impairment | (425.9) | (425.9) | ||
Home Networks [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset impairment charges, excluding goodwill | $ 469.2 | $ 469.2 |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets - Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | $ 5,988.7 | $ 5,988.7 | $ 5,999.5 | ||
Goodwill | 3,635.7 | 3,635.7 | 4,072.4 | ||
Additions (Deductions) | 0 | ||||
Impairment | $ 0 | 425.9 | $ 0 | ||
Foreign exchange and other | (10.8) | ||||
Goodwill, gross, Ending balance | 5,988.7 | 5,988.7 | |||
Accumulated impairment losses | (2,353) | (2,353) | (1,927.1) | ||
CCS [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 2,274.2 | 2,274.2 | 2,280.9 | ||
Goodwill | 2,222.7 | 2,222.7 | 2,229.4 | ||
Additions (Deductions) | 0 | ||||
Impairment | 0 | ||||
Foreign exchange and other | (6.7) | ||||
Goodwill, gross, Ending balance | 2,274.2 | 2,274.2 | |||
Accumulated impairment losses | (51.5) | (51.5) | (51.5) | ||
OWN [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 658.8 | 658.8 | 660.3 | ||
Goodwill | 499.3 | 499.3 | 500.8 | ||
Additions (Deductions) | 0 | ||||
Impairment | 0 | ||||
Foreign exchange and other | (1.5) | ||||
Goodwill, gross, Ending balance | 658.8 | 658.8 | |||
Accumulated impairment losses | (159.5) | (159.5) | (159.5) | ||
NICS [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 648.1 | 648.1 | 649.4 | ||
Goodwill | 606.9 | 606.9 | 608.2 | ||
Additions (Deductions) | 0 | ||||
Impairment | 0 | ||||
Foreign exchange and other | (1.3) | ||||
Goodwill, gross, Ending balance | 648.1 | 648.1 | |||
Accumulated impairment losses | (41.2) | (41.2) | (41.2) | ||
ANS [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 1,994.4 | 1,994.4 | 1,995.7 | ||
Goodwill | 306.8 | 306.8 | 734 | ||
Additions (Deductions) | 0 | ||||
Impairment | 425.9 | 425.9 | |||
Foreign exchange and other | (1.3) | ||||
Goodwill, gross, Ending balance | 1,994.4 | 1,994.4 | |||
Accumulated impairment losses | (1,687.6) | (1,687.6) | (1,261.7) | ||
Home [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 413.2 | 413.2 | 413.2 | ||
Goodwill | 0 | 0 | 0 | ||
Additions (Deductions) | 0 | ||||
Impairment | 0 | ||||
Foreign exchange and other | 0 | ||||
Goodwill, gross, Ending balance | 413.2 | 413.2 | |||
Accumulated impairment losses | $ (413.2) | $ (413.2) | $ (413.2) |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Abstract] | ||||
Allowance for doubtful accounts, beginning of period | $ 63 | $ 61.6 | $ 82.8 | $ 63.7 |
Provision | 4.4 | 1.4 | 7.4 | 2.2 |
Write-offs | (0.6) | (0.8) | (23.8) | (1.9) |
Foreign exchange and other | (0.5) | (1.3) | (0.1) | (3.1) |
Allowance for doubtful accounts, end of period | $ 66.3 | $ 60.9 | $ 66.3 | $ 60.9 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Summary of the Balance Sheet Location and Amounts of Contract Assets and Liabilities from Contracts with Customers (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - current | $ 102 | $ 97.9 |
Total contract liabilities | 171.8 | 161.3 |
Accounts Receivable, Net of Allowance for Doubtful Accounts [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Unbilled accounts receivable | 39.5 | 35.3 |
Accrued and Other Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - current | 102 | 97.9 |
Other Noncurrent Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - noncurrent | $ 69.8 | $ 63.4 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contract with customer liability revenue recognized | $ 18.6 | $ 82.5 | ||
Write-offs | $ (0.6) | $ (0.8) | (23.8) | $ (1.9) |
Previously Reported | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Write-offs | $ (18.5) |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Accounts Receivable (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (66.3) | $ (82.8) |
Total accounts receivable, net | 1,144.5 | 1,523.6 |
Accounts Receivable Trade [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 1,180 | 1,545.3 |
Accounts Receivable Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 30.8 | $ 61.1 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 492.3 | $ 535.8 |
Work in process | 176.9 | 212.7 |
Finished goods | 695.4 | 839.6 |
Total inventories, net | $ 1,364.6 | $ 1,588.1 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Accrued and Other Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued and Other Liabilities [Abstract] | ||
Compensation and employee benefit liabilities | $ 191 | $ 301.3 |
Deferred revenue | 102 | 97.9 |
Accrued interest | 56.9 | 118.1 |
Operating lease liabilities | 40.9 | 47.7 |
Product warranty accrual | 36.1 | 44.8 |
Restructuring liabilities | 35.2 | 58.9 |
Contract manufacturer inventory repurchase obligation | 13.5 | 79.1 |
Other | 243.6 | 302.2 |
Total accrued and other liabilities | $ 719.2 | $ 1,050 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Operating Lease Information (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Fair Value of Assets (Liability), Right of use assets | $ 167.5 | $ 149 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Fair Value of Assets (Liability), Total lease liabilities | $ 40.9 | $ 47.7 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and other liabilities | Accrued and other liabilities |
Fair Value of Assets (Liability), Total lease liabilities | $ 146.6 | $ 123.5 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | Other noncurrent liabilities |
Fair Value of Assets (Liability), Total lease liabilities | $ 187.5 | $ 171.2 |
Supplemental Financial Statem_7
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (1,546) | |||
Ending balance | $ (2,490.1) | $ (538) | (2,490.1) | $ (538) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (249.6) | (276.2) | (270.3) | (165.8) |
Other comprehensive income (loss) | (45.1) | (94.5) | 24.4 | (204.9) |
Ending balance | (294.7) | (370.7) | (294.7) | (370.7) |
Defined Benefit Plan Activity [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (14.9) | (14.7) | (14.8) | (13.4) |
Other comprehensive income (loss) | 0.1 | 0 | 0 | (1.6) |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0.3 |
Ending balance | (14.8) | (14.7) | (14.8) | (14.7) |
Hedging Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (11.7) | (15.4) | (11.2) | (27.2) |
Other comprehensive income (loss) | 3.8 | 3.7 | (3.3) | 15.5 |
Ending balance | (7.9) | (11.7) | (7.9) | (11.7) |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (276.2) | (306.3) | (296.3) | (206.4) |
Ending balance | $ (317.4) | $ (397.1) | $ (317.4) | $ (397.1) |
Supplemental Financial Statem_8
Supplemental Financial Statement Information - Cash Flow Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 85.5 | $ 91.7 |
Interest | $ 546.6 | $ 469.6 |
Financing - Summary of Debt (De
Financing - Summary of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total principal amount of debt | $ 9,460.9 | $ 9,596 |
Less: Original issue discount, net of amortization | (12.7) | (15.9) |
Less: Debt issuance costs, net of amortization | (62.9) | (78.5) |
Less: Current portion | (32) | (32) |
Total long-term debt | 9,353.3 | 9,469.6 |
7.125% Senior Notes Due July 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 695.7 | 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 | 918.6 | 1,000 |
6.00% Senior Notes Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,274.6 | 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 |
Senior Secured Term Loan Due April 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured notes | 3,072 | 3,096 |
Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured revolving credit facility | $ 0 | $ 0 |
Financing - Summary of Debt (Pa
Financing - Summary of Debt (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
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% | 5% |
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% | 6% |
4.75% Senior Secured Notes Due September 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2029-09 | |
Interest rate | 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% | 6% |
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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Current portion of long term debt | $ 32 | $ 32 | $ 32 | ||
Gain (Loss) on Extinguishment of Debt | $ 8.6 | 19 | |||
WriteOff of deferred debt issuance cost | $ 1 | ||||
Weighted average effective interest rate | 7.23% | 7.23% | 6.91% | ||
Total assets | $ 10,065.6 | $ 10,065.6 | $ 11,685.4 | ||
Total liabilities | 11,409.4 | 11,409.4 | $ 12,131.1 | ||
Net sales | 1,599.5 | $ 2,381.4 | 5,519.4 | $ 6,910.2 | |
Non Guarantor Subsidiaries Concentration Risk [Member] | |||||
Debt Instrument [Line Items] | |||||
Total assets | 2,834 | 2,834 | |||
Total liabilities | 799 | 799 | |||
Net sales | 521 | 1,657 | |||
Asset Based Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowed | 0 | 0 | |||
Letters of credit outstanding amount | 0 | 0 | |||
Line of credit facility, remaining borrowing capacity | 771.4 | 771.4 | |||
2026 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Scheduled amortization payments | $ 8 | $ 24 | |||
SOFR, Plus Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
Base Rate Four [Member] | Senior Secured Term Loan 2026 | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Non-US [Member] | Assets, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||||
Debt Instrument [Line Items] | |||||
Concentration risk percentage | 28% | ||||
Non-US [Member] | Liabilities, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||||
Debt Instrument [Line Items] | |||||
Concentration risk percentage | 7% | ||||
Non-US [Member] | Sales Revenue, Net [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||||
Debt Instrument [Line Items] | |||||
Concentration risk percentage | 33% | 30% |
Financing - Summary of Debt Rep
Financing - Summary of Debt Repurchase Activity (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Aggregate Principal Repurchased | $ 111.1 |
Reacquisition Cost | 92.1 |
7.125% Senior Secured Notes Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Repurchased | 4.3 |
Reacquisition Cost | 3.2 |
8.25% Senior Secured Notes Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Repurchased | 81.4 |
Reacquisition Cost | 64.6 |
6.00% Senior Secured Notes Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Repurchased | 25.4 |
Reacquisition Cost | $ 24.3 |
Financing - Summary of Debt R_2
Financing - Summary of Debt Repurchase Activity (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2023 | |
7.125% Senior Secured Notes Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument interest rate during period | 7.125% |
8.25% Senior Secured Notes Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument interest rate during period | 8.25% |
6.00% Senior Secured Notes Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument interest rate during period | 6% |
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, 2023 | Dec. 31, 2022 |
Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | $ 14 | $ 6.5 |
Carrying Amount [Member] | Assets [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 2.1 | 9.9 |
Interest rate swap contracts | 6.3 | 8.6 |
Fair Value [Member] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 14 | 6.5 |
Fair Value [Member] | Assets [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 2.1 | 9.9 |
Interest rate swap contracts | 6.3 | 8.6 |
7.125% Senior Notes Due 2028 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 695.7 | 700 |
7.125% Senior Notes Due 2028 [Member] | Fair Value [Member] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 407 | 502.6 |
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] | Liabilities [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] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 418.1 | 513.4 |
8.25% Senior Notes Due 2027 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 918.6 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 918.6 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Fair Value [Member] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 601 | 780.8 |
6.00% Senior Notes Due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,274.6 | 1,300 |
6.00% Senior Notes Due 2025 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,274.6 | 1,300 |
6.00% Senior Notes Due 2025 [Member] | Fair Value [Member] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,194.9 | 1,183.4 |
4.75% Senior Secured Notes Due 2029 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,250 | 1,250 |
4.75% Senior Secured Notes Due 2029 [Member] | Fair Value [Member] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 909.4 | 1,000 |
6.00% Senior Secured Notes Due 2026 [Member] | Carrying Amount [Member] | Liabilities [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] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,399.1 | 1,383.3 |
Senior Secured Term Loan Due 2026 (Member) | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 3,072 | 3,096 |
Senior Secured Term Loan Due 2026 (Member) | Fair Value [Member] | Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 2,810.9 | $ 2,925.7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of goodwill | $ 0 | $ 425.9 | $ 0 | |
Discounted cash flow [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Valuation technique | 75% | |||
Market approach [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Valuation technique | 25% | |||
Home [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of goodwill | $ 0 | |||
Non-Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of goodwill | $ 425.9 | |||
Non-Recurring [Member] | Home [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of goodwill | $ 469.2 |
Segments and Geographic Infor_3
Segments and Geographic Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Non-US [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 40.10% | 37.20% | 38.70% | 38.30% |
Segments and Geographic Infor_4
Segments and Geographic Information - Summary of Financial Information by Reportable Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 10,065.6 | $ 11,685.4 |
Cash and cash equivalents | 518.9 | 398.1 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 8,852.6 | 10,780.6 |
Operating Segments | CCS [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,790.6 | 4,263.8 |
Operating Segments | OWN [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,015 | 1,166.8 |
Operating Segments | NICS [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,373.6 | 1,338.1 |
Operating Segments | ANS [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,975.9 | 2,632.6 |
Operating Segments | Home [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 697.5 | 1,379.3 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents | 518.9 | 398.1 |
Deferred income tax assets | $ 694.1 | $ 506.7 |
Segments and Geographic Infor_5
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,599.5 | $ 2,381.4 | $ 5,519.4 | $ 6,910.2 |
Total segment adjusted EBITDA | 248.6 | 347.6 | 820.2 | 900.5 |
Amortization of intangible assets | (101.3) | (134.6) | (329.1) | (414.3) |
Restructuring credits, net | (20.4) | (2.5) | (51.8) | (53.1) |
Equity-based compensation | (11.3) | (16.4) | (35.5) | (45.3) |
Asset impairments | (895.1) | 0 | (895.1) | 0 |
Transaction, transformation and integration costs | 16.8 | (5.9) | (25.9) | (36.4) |
Acquisition accounting adjustments | 0.6 | (1.8) | (1.9) | (5.4) |
Patent claims and litigation settlements | 3.5 | (0.1) | 14.5 | (2.3) |
Recovery (reserve) of Russian accounts receivable | 0 | 1.1 | 2 | (2.7) |
Cyber Incident Costs | (1.7) | 0 | (5.8) | 0 |
Depreciation | (30.7) | (31.8) | (92.7) | (95.5) |
Consolidated operating income (loss) | (825.8) | 155.6 | (601.1) | 245.5 |
Additions to property, plant and equipment | 8.7 | 23.6 | 43.9 | 78.7 |
CCS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 632.5 | 1,007.7 | 2,154.2 | 2,832.4 |
Total segment adjusted EBITDA | 78.7 | 188.2 | 305.9 | 455.6 |
Restructuring credits, net | (16.2) | (0.7) | (14.2) | (14.1) |
Depreciation | 15.6 | 14.8 | 46.2 | 43.2 |
Additions to property, plant and equipment | 4.5 | 16.2 | 23.8 | 51.8 |
OWN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 210.3 | 382.1 | 697.5 | 1,163.1 |
Total segment adjusted EBITDA | 45.3 | 82.2 | 146.6 | 228.6 |
Restructuring credits, net | (1.3) | (1.1) | (5.2) | (20.6) |
Depreciation | 3.1 | 3.5 | 9.6 | 10.9 |
Additions to property, plant and equipment | 0.6 | 2.1 | 3.2 | 7.3 |
NICS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 289 | 257.9 | 901.1 | 651.3 |
Total segment adjusted EBITDA | 63 | 24.7 | 195.9 | (4.4) |
Restructuring credits, net | 1 | (0.4) | (10) | (9.8) |
Depreciation | 3.3 | 3.6 | 10 | 11.5 |
Additions to property, plant and equipment | 1.2 | 1.7 | 3.6 | 5.4 |
ANS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 218.3 | 342.3 | 850.5 | 952.4 |
Total segment adjusted EBITDA | 58.5 | 57.8 | 174.9 | 189.9 |
Restructuring credits, net | (2.8) | (0.2) | (13.6) | (7.5) |
Depreciation | 5.3 | 5.7 | 16.6 | 17 |
Additions to property, plant and equipment | 1.4 | 2.2 | 9.2 | 8.7 |
Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 249.4 | 391.4 | 916.1 | 1,311 |
Total segment adjusted EBITDA | 3.1 | (5.3) | (3.1) | 30.8 |
Depreciation | 3.4 | 4.2 | 10.3 | 12.9 |
Additions to property, plant and equipment | $ 1 | $ 1.4 | $ 4.1 | $ 5.5 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 1,599.5 | $ 2,381.4 | $ 5,519.4 | $ 6,910.2 |
CCS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 632.5 | 1,007.7 | 2,154.2 | 2,832.4 |
OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 210.3 | 382.1 | 697.5 | 1,163.1 |
NICS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 289 | 257.9 | 901.1 | 651.3 |
ANS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 218.3 | 342.3 | 850.5 | 952.4 |
Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 249.4 | 391.4 | 916.1 | 1,311 |
United States [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 957.4 | 1,495.1 | 3,380.8 | 4,266.5 |
United States [Member] | CCS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 385.5 | 678.6 | 1,394.8 | 1,858.5 |
United States [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 126.2 | 277 | 450.4 | 840.1 |
United States [Member] | NICS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 180.9 | 146.7 | 532.8 | 372.9 |
United States [Member] | ANS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 172.9 | 235.1 | 631.8 | 630 |
United States [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 91.9 | 157.7 | 371 | 565 |
Europe, Middle East and Africa (EMEA) [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 297.8 | 396 | 994.1 | 1,180.8 |
Europe, Middle East and Africa (EMEA) [Member] | CCS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 100.6 | 153.5 | 317.9 | 430.5 |
Europe, Middle East and Africa (EMEA) [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 52.4 | 52.7 | 159.5 | 172.2 |
Europe, Middle East and Africa (EMEA) [Member] | NICS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 73 | 68.7 | 233.9 | 171.4 |
Europe, Middle East and Africa (EMEA) [Member] | ANS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 15.2 | 29.9 | 77 | 88.3 |
Europe, Middle East and Africa (EMEA) [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 56.6 | 91.2 | 205.8 | 318.4 |
Asia Pacific (APAC) [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 172.2 | 210.9 | 526.1 | 637.4 |
Asia Pacific (APAC) [Member] | CCS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 99.4 | 102.3 | 286.8 | 330.6 |
Asia Pacific (APAC) [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 24.2 | 36.4 | 67.9 | 94.8 |
Asia Pacific (APAC) [Member] | NICS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 25 | 30.7 | 100.5 | 81.8 |
Asia Pacific (APAC) [Member] | ANS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 6.1 | 19 | 17.2 | 64.6 |
Asia Pacific (APAC) [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 17.5 | 22.5 | 53.7 | 65.6 |
Caribbean and Latin America (CALA) [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 74.9 | 148.6 | 311 | 461.3 |
Caribbean and Latin America (CALA) [Member] | CCS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 34.2 | 44.8 | 112.4 | 138.7 |
Caribbean and Latin America (CALA) [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 5.3 | 8.8 | 12.9 | 25.3 |
Caribbean and Latin America (CALA) [Member] | NICS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 2.7 | 6.3 | 17.6 | 15.6 |
Caribbean and Latin America (CALA) [Member] | ANS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 13.4 | 44.1 | 81.3 | 131 |
Caribbean and Latin America (CALA) [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 19.3 | 44.6 | 86.8 | 150.7 |
Canada [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 97.2 | 130.8 | 307.4 | 364.2 |
Canada [Member] | CCS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 12.8 | 28.5 | 42.3 | 74.1 |
Canada [Member] | OWN [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 2.2 | 7.2 | 6.8 | 30.7 |
Canada [Member] | NICS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 7.4 | 5.5 | 16.3 | 9.6 |
Canada [Member] | ANS [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 10.7 | 14.2 | 43.2 | 38.5 |
Canada [Member] | Home [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 64.1 | $ 75.4 | $ 198.8 | $ 211.3 |
Restructuring Costs, Net - Summ
Restructuring Costs, Net - Summary of Company's Net Pretax Restructuring Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | $ 20.4 | $ 2.5 | $ 51.8 | $ 53.1 |
CCS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 16.2 | 0.7 | 14.2 | 14.1 |
OWN [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 1.3 | 1.1 | 5.2 | 20.6 |
NICS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | (1) | 0.4 | 10 | 9.8 |
ANS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 2.8 | 0.2 | 13.6 | 7.5 |
Home [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | $ 1.1 | $ 0.1 | $ 8.8 | $ 1.1 |
Restructuring Costs, Net - Rest
Restructuring Costs, Net - Restructuring Liabilities Included in Company's Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | $ 35.2 | $ 58.9 |
Total restructuring liabilities | 35.3 | 59.4 |
Accrued and Other Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | 35.2 | 58.9 |
Other Noncurrent Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, non-current | $ 0.1 | $ 0.5 |
Restructuring Costs, Net - Acti
Restructuring Costs, Net - Activity within Liability Established for Restructuring Actions (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 59.4 | |
Ending Balance | $ 35.3 | 35.3 |
CommScope NEXT Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 56.8 | 58.7 |
Additional expense (reversals), net | 20.6 | 52.2 |
Cash received (paid) | (40.1) | (51.3) |
Foreign exchange and other non-cash items | (2.4) | (24.7) |
Ending Balance | 34.9 | 34.9 |
Employee-Related Costs [Member] | CommScope NEXT Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 56.8 | 58.7 |
Additional expense (reversals), net | 19 | 66.2 |
Cash received (paid) | (40.1) | (89.9) |
Foreign exchange and other non-cash items | (0.8) | (0.1) |
Ending Balance | 34.9 | 34.9 |
Other Costs [Member] | CommScope NEXT Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 0 | 0 |
Additional expense (reversals), net | 1.6 | (14) |
Cash received (paid) | 0 | 38.6 |
Foreign exchange and other non-cash items | (1.6) | (24.6) |
Ending Balance | $ 0 | $ 0 |
Restructuring Costs, Net - Addi
Restructuring Costs, Net - Additional Information (Detail) € in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 EUR (€) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Operating lease, right of use | $ 167.5 | $ 167.5 | $ 149 | ||||
Operating lease liability | 187.5 | 187.5 | $ 171.2 | ||||
Restructuring costs, net | $ 20.4 | $ 2.5 | $ 51.8 | $ 53.1 | |||
International Manufacturing Facility [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Sale leaseback transaction, lease terms | term of nine years with annual payments that range from €800 thousand to €1.5 million. The Company determined the lease to be an operating lease and upon entering into the lease, recognized a right of use asset and operating lease liability of €7.5 million based on the present value of the minimum lease payments discounted using an incremental borrowing rate of 7.15%. | term of nine years with annual payments that range from €800 thousand to €1.5 million. The Company determined the lease to be an operating lease and upon entering into the lease, recognized a right of use asset and operating lease liability of €7.5 million based on the present value of the minimum lease payments discounted using an incremental borrowing rate of 7.15%. | |||||
Term of lease contract | 9 years | 9 years | 9 years | ||||
Operating lease liability | € | € 7,500 | ||||||
Commscope Next [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Recognized restructuring charges | $ 181.6 | $ 181.6 | |||||
Commscope Next [Member] | 2023 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected cash payments | 21.3 | ||||||
Commscope Next [Member] | 2024 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected cash payments | 13.6 | ||||||
Commscope Next [Member] | Facility Closing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash received (paid) | 38.4 | ||||||
Restructuring costs (credits), net | $ 20.2 | ||||||
Commscope Next [Member] | Facility Closing [Member] | International Manufacturing Facility [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Operating lease, right of use | € | € 7,500 | ||||||
Present value of minimum lease payments discounting rate | 7.15% | 7.15% | 7.15% | ||||
Commscope Next [Member] | Facility Closing [Member] | Maximum [Member] | International Manufacturing Facility [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Annual lease payment | € | € 1,500 | ||||||
Commscope Next [Member] | Facility Closing [Member] | Minimum [Member] | International Manufacturing Facility [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Annual lease payment | € | € 800 |
Series A Convertible Preferre_2
Series A Convertible Preferred Stock - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Apr. 04, 2019 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 shares | |
Class Of Stock [Line Items] | ||||||
Preferred stock, shares authorized | shares | 200,000,000 | 200,000,000 | 200,000,000 | |||
Dividends declared payable in kind | $ | $ 15.5 | $ 45.9 | $ 29.2 | |||
Carlyle [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Agreement date | Nov. 08, 2018 | |||||
Carlyle [Member] | Series A Convertible Preferred Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Convertible preferred stock, share issued | shares | 1,000,000 | |||||
Total purchase price | $ | $ 1,000 | |||||
Total purchase price per share | $ / shares | $ 1,000 | |||||
Convertible preferred stock, conversion price per share | $ / shares | $ 27.5 | |||||
Preferred stock, shares authorized | shares | 1,200,000 | 1,200,000 | ||||
Initial conversion rate of common stock per share of the convertible preferred stock | 36.3636 | |||||
Carlyle [Member] | 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, Preferred Stock, Cash | $ | $ 14.9 | $ 14.9 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2019 | Sep. 30, 2023 | Dec. 31, 2022 | |
Stockholders Equity [Line Items] | |||
Unrecognized compensation costs related to unvested stock options, restricted stock units (RSUs) and performance share units (PSUs) | $ 89,500,000 | ||
Recognition period of unrecognized compensation expense | 2 years 1 month 6 days | ||
Capitalized equity-based compensation costs | $ 0 | ||
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% | 0% | 0% |
Performance Shares [Member] | Maximum [Member] | |||
Stockholders Equity [Line Items] | |||
Number of shares issued on performance | 100% | 200% | 300% |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 11.3 | $ 16.4 | $ 35.5 | $ 45.3 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 7.8 | 9.2 | 22.9 | 25.6 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 2.3 | 5 | 8.4 | 13.6 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 1.2 | $ 2.2 | $ 4.2 | $ 6.1 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share units, Beginning balance | 12.6 | 11.2 |
Shares, Granted | 7.5 | |
Shares, Vested and shares issued | (5.2) | |
Shares, Forfeited | (0.4) | (1.3) |
Non-vested share units, Ending balance | 12.2 | 12.2 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ 6.9 | $ 10.66 |
Weighted Average Grant Date Fair Value Per Share, Granted | 4.58 | |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | 11.1 | |
Weighted Average Grant Date Fair Value Per Share, Forfeited | 8.64 | 10.06 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ 6.83 | $ 6.83 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 4.40% | 1.70% |
Expected volatility | 67.20% | 61.20% |
Weighted average fair value at grant date | $ 9.19 | $ 11.21 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of PSU Activity (Detail) - Performance Shares [Member] - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share units, Beginning balance | 6.8 | 2.9 |
Shares, Granted | 4 | |
Shares, Forfeited | (0.1) | (0.2) |
Non-vested share units, Ending balance | 6.7 | 6.7 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ 6.72 | $ 8.14 |
Weighted Average Grant Date Fair Value Per Share, Granted | 5.78 | |
Weighted Average Grant Date Fair Value Per Share, Forfeited | 8.72 | 9.48 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ 6.69 | $ 6.69 |
Subsequent Events - Additional
Subsequent Events - Additional information (Detail) - Oct. 02, 2023 - Subsequent Event [Member] - Vantiva [Member] $ in Millions | EUR (€) | USD ($) |
Subsequent Event [Line Items] | ||
Percentage of shares acquired | 25% | |
Earn-out payment, up to | $ | $ 100 | |
Adjusted EBITDA | € 400,000,000 | |
Adjusted EBITDA threshold | € 400,000,000 |