Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
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 | 198,644,631 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | COMM | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-36146 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-4332098 | |
Entity Address, Address Line One | 1100 CommScope Place, SE | |
Entity Address, City or Town | Hickory | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28602 | |
City Area Code | 828 | |
Local Phone Number | 324-2200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,168.1 | $ 2,380.2 | $ 6,304.1 | $ 6,046.4 |
Cost of sales | 1,432.6 | 1,770.3 | 4,271.3 | 4,378.5 |
Gross profit | 735.5 | 609.9 | 2,032.8 | 1,667.9 |
Operating expenses: | ||||
Selling, general and administrative | 296.7 | 305.8 | 898.7 | 972 |
Research and development | 184.6 | 171.5 | 541.1 | 399.5 |
Amortization of purchased intangible assets | 158.1 | 163.9 | 473.5 | 387.3 |
Restructuring costs, net | 40.3 | 19.5 | 83.6 | 78.3 |
Asset impairments | 206.7 | |||
Total operating expenses | 679.7 | 660.7 | 2,203.6 | 1,837.1 |
Operating income (loss) | 55.8 | (50.8) | (170.8) | (169.2) |
Other income (expense), net | (16.9) | 1.5 | (30.2) | (3.6) |
Interest expense | (147.2) | (160.7) | (437.7) | (423.5) |
Interest income | 1.3 | 1.8 | 4.2 | 15.9 |
Loss before income taxes | (107) | (208.2) | (634.5) | (580.4) |
Income tax (expense) benefit | (9.3) | 51.7 | 37.2 | 87.6 |
Net loss | (116.3) | (156.5) | (597.3) | (492.8) |
Series A convertible preferred stock dividend | (14.1) | (13.8) | (41.8) | (26.9) |
Deemed dividend on Series A convertible preferred stock | (3) | |||
Net loss attributable to common stockholders | $ (130.4) | $ (170.3) | $ (639.1) | $ (522.7) |
Loss per share: | ||||
Basic | $ (0.66) | $ (0.88) | $ (3.26) | $ (2.70) |
Diluted | $ (0.66) | $ (0.88) | $ (3.26) | $ (2.70) |
Weighted average shares outstanding: | ||||
Basic | 196.9 | 194.1 | 195.9 | 193.5 |
Diluted | 196.9 | 194.1 | 195.9 | 193.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Comprehensive loss: | ||||
Net loss | $ (116.3) | $ (156.5) | $ (597.3) | $ (492.8) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | 63.7 | (76.6) | (1.3) | (76.5) |
Pension and other postretirement benefit activity | (0.1) | (0.1) | (0.6) | (0.2) |
Gain (loss) on hedging instruments | (9) | 7.9 | (21.9) | (4) |
Total other comprehensive income (loss), net of tax | 54.6 | (68.8) | (23.8) | (80.7) |
Total comprehensive loss | $ (61.7) | $ (225.3) | $ (621.1) | $ (573.5) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 582.8 | $ 598.2 |
Accounts receivable, less allowance for doubtful accounts of $43.1 and $35.4, respectively | 1,497.2 | 1,698.8 |
Inventories, net | 1,104.5 | 975.9 |
Prepaid expenses and other current assets | 230.9 | 238.9 |
Total current assets | 3,415.4 | 3,511.8 |
Property, plant and equipment, net of accumulated depreciation of $665.5 and $553.8, respectively | 673.3 | 723.8 |
Goodwill | 5,254.1 | 5,471.7 |
Other intangible assets, net | 3,795.5 | 4,263.6 |
Other noncurrent assets | 562.7 | 460.7 |
Total assets | 13,701 | 14,431.6 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 1,147.3 | 1,148 |
Accrued and other liabilities | 878.3 | 862 |
Current portion of long-term debt | 32 | 32 |
Total current liabilities | 2,057.6 | 2,042 |
Long-term debt | 9,589.3 | 9,800.4 |
Deferred income taxes | 217.7 | 215.1 |
Other noncurrent liabilities | 540.5 | 537.8 |
Total liabilities | 12,405.1 | 12,595.3 |
Commitments and contingencies | ||
Series A convertible preferred stock, $0.01 par value | 1,041.8 | 1,000 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value: Authorized shares: 200,000,000; Issued and outstanding shares: 1,041,819 Series A convertible preferred stock | ||
Common stock, $0.01 par value: Authorized shares: 1,300,000,000; Issued and outstanding shares: 196,990,667 and 194,563,530, respectively | 2.1 | 2 |
Additional paid-in capital | 2,494.2 | 2,445.1 |
Retained earnings (accumulated deficit) | (1,776.6) | (1,179.3) |
Accumulated other comprehensive loss | (220.8) | (197) |
Treasury stock, at cost: 8,498,082 shares and 7,411,382 shares, respectively | (244.8) | (234.5) |
Total stockholders' equity | 254.1 | 836.3 |
Total liabilities and stockholders' equity | $ 13,701 | $ 14,431.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 43.1 | $ 35.4 |
Property, plant and equipment, accumulated depreciation | $ 665.5 | $ 553.8 |
Series A convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Series A convertible preferred stock, shares issued | 1,041,819 | 1,041,819 |
Series A convertible preferred stock, shares outstanding | 1,041,819 | 1,041,819 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,300,000,000 | 1,300,000,000 |
Common stock, shares issued | 196,990,667 | 194,563,530 |
Common stock, shares outstanding | 196,990,667 | 194,563,530 |
Treasury stock, shares | 8,498,082 | 7,411,382 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities: | ||
Net loss | $ (597.3) | $ (492.8) |
Adjustments to reconcile net loss to net cash generated by operating activities: | ||
Depreciation and amortization | 618.8 | 514.5 |
Equity-based compensation | 90 | 58.7 |
Deferred income taxes | (96.6) | (172.4) |
Asset impairments | 206.7 | |
Changes in assets and liabilities: | ||
Accounts receivable | 200.9 | 165.3 |
Inventories | (130.3) | 356.3 |
Prepaid expenses and other assets | 32.2 | 63.8 |
Accounts payable and other liabilities | (25) | (228) |
Other | 39.1 | (5) |
Net cash generated by operating activities | 338.5 | 260.4 |
Investing Activities: | ||
Additions to property, plant and equipment | (73.5) | (72.3) |
Proceeds from sale of property, plant and equipment | 0.2 | 1.2 |
Proceeds from sale of long-term investments | 9.3 | |
Cash paid for ARRIS acquisition, net of cash acquired | (5,053.4) | |
Cash paid for Cable Exchange acquisition | (3.5) | (11) |
Other | 1.1 | |
Net cash used in investing activities | (76.8) | (5,125.1) |
Financing Activities: | ||
Long-term debt repaid | (1,174) | (2,753.3) |
Long-term debt proceeds | 950 | 6,933 |
Debt issuance costs | (11.6) | (120.8) |
Debt extinguishment costs | (14.9) | |
Series A convertible preferred stock proceeds | 1,000 | |
Dividends paid on Series A convertible preferred stock | (29.9) | |
Proceeds from the issuance of common shares under equity-based compensation plans | 1 | 3 |
Tax withholding payments for vested equity-based compensation awards | (10.3) | (12.3) |
Net cash generated by (used in) financing activities | (259.8) | 5,019.7 |
Effect of exchange rate changes on cash and cash equivalents | (17.3) | (4.1) |
Change in cash and cash equivalents | (15.4) | 150.9 |
Cash and cash equivalent at beginning of period | 598.2 | 458.2 |
Cash and cash equivalents at end of period | $ 582.8 | $ 609.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, at Cost [Member] |
Beginning balance, Shares at Dec. 31, 2018 | 192,376,255 | |||||
Issuance of shares under equity-based compensation plans, shares | 2,476,179 | |||||
Shares surrendered under equity-based compensation plans | (601,712) | |||||
Ending balance, Shares at Sep. 30, 2019 | 194,250,722 | |||||
Beginning balance at Dec. 31, 2018 | $ 2 | $ 2,385.1 | $ (249.8) | $ (159.2) | $ (221.3) | |
Issuance of shares under equity-based compensation plans | 3 | |||||
Equity-based compensation | 58.7 | |||||
Equity-based compensation assumed | 8.3 | |||||
Dividend on Series A convertible preferred stock | (26.9) | |||||
Deemed dividend on Series A convertible preferred stock | (3) | |||||
Net loss | $ (492.8) | (492.8) | ||||
Other comprehensive income (loss), net of tax | (80.7) | (80.7) | ||||
Net shares surrendered under equity-based compensation plans | (12.3) | |||||
Ending balance at Sep. 30, 2019 | 1,211.1 | $ 2 | 2,425.2 | (742.6) | (239.9) | (233.6) |
Beginning balance, Shares at Jun. 30, 2019 | 193,873,919 | |||||
Issuance of shares under equity-based compensation plans, shares | 569,086 | |||||
Shares surrendered under equity-based compensation plans | (192,283) | |||||
Ending balance, Shares at Sep. 30, 2019 | 194,250,722 | |||||
Beginning balance at Jun. 30, 2019 | $ 2 | 2,410.7 | (586.1) | (171.1) | (230.6) | |
Issuance of shares under equity-based compensation plans | 0.3 | |||||
Equity-based compensation | 28 | |||||
Dividend on Series A convertible preferred stock | (13.8) | |||||
Net loss | (156.5) | (156.5) | ||||
Other comprehensive income (loss), net of tax | (68.8) | (68.8) | ||||
Net shares surrendered under equity-based compensation plans | (3) | |||||
Ending balance at Sep. 30, 2019 | $ 1,211.1 | $ 2 | 2,425.2 | (742.6) | (239.9) | (233.6) |
Beginning balance, Shares at Dec. 31, 2019 | 194,563,530 | 194,563,530 | ||||
Issuance of shares under equity-based compensation plans, shares | 3,513,837 | |||||
Shares surrendered under equity-based compensation plans | (1,086,700) | |||||
Ending balance, Shares at Sep. 30, 2020 | 196,990,667 | 196,990,667 | ||||
Beginning balance at Dec. 31, 2019 | $ 836.3 | $ 2 | 2,445.1 | (1,179.3) | (197) | (234.5) |
Issuance of shares under equity-based compensation plans | 0.1 | 0.9 | ||||
Equity-based compensation | 90 | |||||
Dividend on Series A convertible preferred stock | (41.8) | |||||
Net loss | (597.3) | (597.3) | ||||
Other comprehensive income (loss), net of tax | (23.8) | (23.8) | ||||
Net shares surrendered under equity-based compensation plans | (10.3) | |||||
Ending balance at Sep. 30, 2020 | $ 254.1 | $ 2.1 | 2,494.2 | (1,776.6) | (220.8) | (244.8) |
Beginning balance, Shares at Jun. 30, 2020 | 195,997,230 | |||||
Issuance of shares under equity-based compensation plans, shares | 1,469,968 | |||||
Shares surrendered under equity-based compensation plans | (476,531) | |||||
Ending balance, Shares at Sep. 30, 2020 | 196,990,667 | 196,990,667 | ||||
Beginning balance at Jun. 30, 2020 | $ 2 | 2,474.3 | (1,660.3) | (275.4) | (240.8) | |
Issuance of shares under equity-based compensation plans | 0.1 | |||||
Equity-based compensation | 34 | |||||
Dividend on Series A convertible preferred stock | (14.1) | |||||
Net loss | $ (116.3) | (116.3) | ||||
Other comprehensive income (loss), net of tax | 54.6 | 54.6 | ||||
Net shares surrendered under equity-based compensation plans | (4) | |||||
Ending balance at Sep. 30, 2020 | $ 254.1 | $ 2.1 | $ 2,494.2 | $ (1,776.6) | $ (220.8) | $ (244.8) |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Background and Basis of Presentation | 1. BACKGROUND AND BASIS OF PRESENTATION Background CommScope Holding Company, Inc., along with its direct and indirect subsidiaries (CommScope or the Company), is a global provider of infrastructure solutions for communication and entertainment networks. The Company’s solutions for wired and wireless networks enable service providers including cable, telephone and digital broadcast satellite operators and media programmers to deliver media, voice, Internet Protocol (IP) data services and Wi-Fi to their subscribers and allow enterprises to experience constant, wireless and wired connectivity across complex and varied networking environments. The Company’s solutions are complemented by a broad array of services including technical support, systems design and integration. CommScope is a leader in digital video and IP television distribution systems, broadband access infrastructure platforms and equipment that delivers data and voice networks to homes. CommScope’s global leadership position is built upon innovative technology, broad solution offerings, high-quality and cost-effective customer solutions, and global manufacturing and distribution scale. On April 4, 2019, the Company completed the acquisition of ARRIS International plc (ARRIS) (the Acquisition) in an all-cash transaction with a total purchase price of approximately $7.7 billion, including debt assumed. See Note 2 for additional discussion of the Acquisition. As of January 1, 2020, the Company reorganized its internal management and reporting structure as part of the integration of the Acquisition. The reorganization changed the information regularly reviewed by the Company’s chief operating decision maker for purposes of allocating resources and assessing performance. As a result, the Company now reports financial performance for the 2020 year based on four operating segments: Broadband Networks (Broadband), Home Networks (Home), Outdoor Wireless Networks (OWN) and Venue and Campus Networks (VCN). These four segments represent non-aggregated reportable operating segments. Prior to this change, the Company operated and reported five operating segments: Connectivity Solutions, Mobility Solutions, Customer Premises Equipment, Network and Cloud and Ruckus Networks. All prior period amounts in these condensed consolidated financial statements have been recast to reflect these operating segment changes. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for these interim periods are not necessarily indicative of the results of operations to be expected for any future period or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the 2019 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 2019 Annual Report. Other than the enhancements described below to the allowance for doubtful accounts policy as a result of the adoption of Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable and contract assets for unbilled receivables are stated at the amount owed by the customer, net of allowances for estimated doubtful accounts, discounts, returns and rebates. The Company measures the allowance for doubtful accounts using an expected credit loss model, which uses a lifetime expected loss allowance for all trade accounts receivable and contract assets. To measure the expected credit losses, trade accounts receivable and contract assets are grouped based on shared credit risk characteristics and the days past due. Contract assets relate to unbilled work in progress and have substantially the same risk characteristics as trade accounts receivable for the same types of contracts. Therefore, the Company has concluded that the expected loss rates for trade accounts receivables are a reasonable approximation of the loss rates for the contract assets. In calculating an allowance for doubtful accounts, the Company uses its historical experience, external indicators and forward-looking information to calculate expected credit losses using an aging method. The Company assesses impairment of trade accounts receivable on a collective basis as they possess shared credit risk characteristics which have been grouped based on the days past due. The expected loss rates are based on the payment profiles of sales over the preceding thirty-six months and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle their trade accounts receivable. Concentrations of Risk and Related Party Transactions Net sales to Comcast Corporation and affiliates (Comcast) accounted for 11% of the Company’s total net sales during the three and nine months ended September 30, 2020. No other direct customer accounted for 10% or more of the Company’s total net sales. Net sales to Comcast accounted for 15% and 10% of the Company’s total net sales during the three and nine months ended September 30, 2019, respectively. Other than Comcast, no other direct customer accounted for 10% or more of the Company’s total net sales during the three and nine months ended September 30, 2019. No direct customer accounted for 10% or more of the Company’s accounts receivable as of September 30, 2020. 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, 2020, 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. See Note 11 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, 2020. Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods, depending upon the product subject to the warranty and the terms of the individual agreements. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product warranty accrual, beginning of period $ 55.9 $ 66.6 $ 61.0 $ 15.6 Obligation assumed under ARRIS acquisition — — — 57.4 Provision for warranty claims 10.3 6.5 20.1 12.5 Warranty claims paid (8.4 ) (9.3 ) (22.8 ) (21.7 ) Foreign exchange 0.2 — (0.3 ) — Product warranty accrual, end of period $ 58.0 $ 63.8 $ 58.0 $ 63.8 Commitments and Contingencies The Company is party to certain intellectual property claims and periodically receives notices asserting that its products infringe on another party’s patents and other intellectual property rights. These claims and assertions, whether against the Company directly or against its customers, could require the Company to pay damages, royalties, stop offering the relevant products and/or cease other activities. The Company may also be called upon to indemnify certain customers for costs related to products sold to such customers. While the outcome of the claims and notices is uncertain and a reasonable estimate of the loss from unfavorable outcomes in certain of these matters cannot be determined, an adverse outcome could result in a material loss. As of September 30, 2020, the Company had a liability of $59.4 million recorded in accrued and other liabilities on the Condensed Consolidated Balance Sheets related to certain intellectual property assertions that have been settled or are in process of settlement. Of that amount, $48.5 million was assumed in the Acquisition. The Company paid $66.2 million during the nine months ended September 30, 2020 to settle intellectual property assertions and expects to pay an additional $39.8 million in the fourth quarter of 2020. For the three and nine months ended September 30, 2020, the Company recorded a charge (credit) to cost of sales in the Condensed Consolidated Statements of Operations of $(9.9) million and $2.8 million, respectively related to these intellectual property assertions. These amounts are primarily reflected in the results of the Home and VCN segments. The Company is either a plaintiff or a defendant in certain other pending legal matters in the normal course of business. Management believes none of these other pending legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. There were no indicators of goodwill impairment identified during the three months ended September 30, 2020. See Notes 3 and 8 for discussion of goodwill impairment charges during the nine months ended September 30, 2020. There were no indicators of goodwill impairment identified during the three or nine months ended September 30, 2019. Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are adjusted to estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment and are then measured at fair value if an impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three or nine months ended September 30, 2020 or 2019. See Note 10 for discussion of impairment charges related to restructuring actions. Income Taxes For the three months ended September 30, 2020, the Company’s effective tax rate was (8.7)% and the Company recognized income tax expense of $9.3 million on a pretax loss of $107.0 million. The income tax expense on the Company’s pretax loss was driven by $19.2 million of tax expense related to a foreign tax rate change. For the nine months ended September 30, 2020, the Company’s effective tax rate was 5.9% and the Company recognized a tax benefit of $37.2 million on a pretax loss of $634.5 million. The Company’s tax benefit was less than the statutory rate of 21.0% in the nine months ended September 30, 2020 primarily due to a goodwill impairment charge of $206.7 million, for which minimal tax benefits were recorded, $22.7 million of tax expense related to state valuation allowances and $19.2 million in income tax expense related to a foreign tax rate change. For both the three and nine months ended September 30, 2020, the Company’s tax rate was also impacted favorably by federal tax credits and unfavorably by U.S. anti-deferral provisions and foreign withholding taxes. Excess tax costs of $1.2 million and $9.0 million related to equity compensation awards also impacted the income taxes unfavorably for the three and nine months ended September 30, 2020, respectively. For the three and nine months ended September 30, 2019, the Company’s effective income tax rate was 24.8% and 15.1%, respectively, and the Company recognized a tax benefit of $51.7 million on a pretax loss of $208.2 million and a tax benefit of $87.6 million on a pretax loss of $580.4 million, respectively. For the three and nine months ended September 30, 2019, our tax benefit was impacted favorably by the impact of federal tax credits, benefits recognized from adjustments related to prior years’ tax returns and the expiration of statutes of limitations on various uncertain tax positions and impacted unfavorably by the impact of U.S. anti-deferral provisions and foreign withholding taxes. Excess tax costs related to equity-based compensation awards had an unfavorable impact on our tax benefit of $1.1 million and $1.5 million for the three and nine months ended September 30, 2019, respectively. Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) is computed by dividing net income (loss), less any dividends and deemed dividends related to the Convertible Preferred Stock, by the weighted average number of common shares outstanding during the period. The numerator in diluted EPS is based on the basic EPS numerator adjusted to add back any dividends and deemed dividends related to the Convertible Preferred Stock, subject to antidilution requirements. The denominator used in diluted EPS is based on the basic EPS computation plus the effect of potentially dilutive common shares related to the Convertible Preferred Stock and equity-based compensation plans, subject to antidilution requirements. For the three and nine months ended September 30, 2020, 18.9 million and 17.4 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because the effect was either antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2020, 4.7 million and 4.5 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the three and nine months ended September 30, 2019, 17.4 million shares and 10.8 million shares, respectively, were not included in the computation of diluted EPS because the effect was either antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2019, 1.4 million shares and 2.3 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the three and nine months ended September 30, 2020 and 2019, 37.4 million and 36.9 million, respectively, and 36.4 million and 23.8 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were anti-dilutive; however, they would have been considered dilutive if the Company had not been in a net loss position. The following table presents the basis for the EPS computations (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net loss $ (116.3 ) $ (156.5 ) $ (597.3 ) $ (492.8 ) Dividends on Series A convertible preferred stock (14.1 ) (13.8 ) (41.8 ) (26.9 ) Deemed dividends on Series A convertible preferred stock — — — (3.0 ) Net loss attributable to common stockholders $ (130.4 ) $ (170.3 ) $ (639.1 ) $ (522.7 ) Denominator: Weighted average common shares outstanding - basic 196.9 194.1 195.9 193.5 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — — — — Weighted average common shares outstanding - diluted 196.9 194.1 195.9 193.5 Loss per share: Basic $ (0.66 ) $ (0.88 ) $ (3.26 ) $ (2.70 ) Diluted $ (0.66 ) $ (0.88 ) $ (3.26 ) $ (2.70 ) Recent Accounting Pronouncements Adopted During the Nine Months Ended September 30, 2020 On January 1, 2020, the Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU No. 2018-19, ASU No. 2019-04, ASU No. 2019-05 and ASU No. 2020-02 (collectively, Topic 326) the incurred loss methodology with the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including trade accounts receivable. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842. The Company adopted Topic 326 using the modified retrospective method for all financial assets measured at amortized cost, which are primarily trade accounts receivable and contract assets for the Company. Results for reporting periods beginning after January 1, 2020 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The impact of adopting Topic 326 as of January 1, 2020 was not material to the consolidated financial statements. Issued but Not Adopted In August 2020, the (FASB) issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . The new guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share, along with expanded disclosures. ASU No. 2020-06 is effective for the Company as of January 1, 2022 and early adoption is permitted beginning January 1, 2021. The Company is evaluating the impact of the new guidance on the consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The Company can elect to apply the amendments as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01 , Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The new guidance is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. The amendments in this guidance clarify the interaction of accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU No. 2020-01 is effective for the Company as of January 1, 2021 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements. In December 2019 the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 2. ACQUISITIONS On April 4, 2019, the Company acquired all of the issued ordinary shares of ARRIS in an all cash transaction with a total consideration of approximately $7.7 billion, including debt assumed. ARRIS is a global leader in entertainment, communications and networking technology. The combined company is expected to drive profitable growth in new markets, shape the future of wired and wireless communications, and position the Company to benefit from key industry trends, including network convergence, fiber and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures. During the first quarter of 2020, the Company completed its acquisition accounting and made the following adjustments to the provisional amounts that were previously recorded: • An increase of $13.1 million in accrued liabilities and an increase of $3.2 million in deferred tax assets due to an adjustment of certain pre-acquisition contingencies with a corresponding $9.9 million increase to goodwill. • An increase in deferred tax assets of $20.8 million related to the release of valuation allowances for certain state income tax credits with a corresponding decrease to goodwill. • A decrease in deferred tax liabilities of approximately $4.7 million, an increase in income tax payable of $6.7 million and a decrease in unrecognized tax benefits of approximately $0.9 million with a corresponding $1.1 million increase to goodwill. The Company recorded these amounts as measurement period adjustments because the information was known as of the acquisition date but the analysis was finalized in the first quarter of 2020. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 3. GOODWILL As a result of the change in segments as discussed in Note 1, goodwill was reallocated from the previous segments to the new segments. The following table presents goodwill after the reallocation by new reportable segment: Broadband Home OWN VCN Total Goodwill, gross at December 31, 2019 $ 3,355.1 $ 402.1 $ 666.0 $ 1,635.6 $ 6,058.8 Adjustments to preliminary purchase price (7.1 ) (1.3 ) — (1.4 ) (9.8 ) Foreign exchange and other 2.3 (1.3 ) — (2.1 ) (1.1 ) Goodwill, gross at September 30, 2020 3,350.3 399.5 666.0 1,632.1 6,047.9 Accumulated impairment charges at December 31, 2019 (193.6 ) (192.8 ) (159.5 ) (41.2 ) (587.1 ) Impairment charges for the nine months ended September 30, 2020 — (206.7 ) — — (206.7 ) Accumulated impairment at September 30, 2020 (193.6 ) (399.5 ) (159.5 ) (41.2 ) (793.8 ) Goodwill, net at September 30, 2020 $ 3,156.7 $ — $ 506.5 $ 1,590.9 $ 5,254.1 The Company’s change in segments as of January 1, 2020 resulted in a realignment of its existing reporting units. Although the reporting units were realigned under the new segments, the Company’s reporting units remained the same except for where two reporting units have been combined into a new reporting unit. In this case, goodwill was simply combined in the new reporting units. Since the composition of the reporting units and the assignment of goodwill to the reporting units were unaffected, an interim goodwill impairment test due to the change in segments was not performed in the first quarter of 2020. During the second quarter of 2020, the Company determined that indicators of goodwill impairment existed for the Home Networks reporting unit due to lower projected operating results, primarily from the accelerated decline in video devices. This trend was projected to continue as consumers adopt the use of other streaming applications and was further impacted by the macro-economic effects caused by the new strain of coronavirus (COVID-19). The Company performed a quantitative goodwill impairment test during the second quarter of 2020 and recorded a $206.7 million goodwill impairment charge during the second quarter 2020 relating to the Home Networks reporting unit. It is reflected in the asset impairments line on the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2020. This reflected a full impairment of the remaining goodwill in the Home segment, and as such, the Home segment has no remaining goodwill balance as of September 30, 2020. Estimating the fair value of a reporting unit involves uncertainties because it requires management to develop numerous assumptions, including assumptions about the future growth and potential volatility in revenues and costs, capital expenditures, industry economic factors and future business strategy. Changes in projected revenue growth rates, projected operating income margins or estimated discount rates due to uncertain market conditions, loss of one or more key customers, changes in the Company’s strategy, changes in technology or other factors could negatively affect the fair value in one or more of the Company’s reporting units and result in a material impairment charge in the future. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue From Contracts With Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Net Sales The following table presents net sales by reportable segment, disaggregated based on contract type: Three Months Ended September 30, Broadband Home OWN VCN Total 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Contract type: Product contracts $ 744.5 $ 623.0 $ 561.7 $ 817.8 $ 265.7 $ 328.4 $ 444.8 $ 494.5 $ 2,016.7 $ 2,263.7 Other contracts 76.4 71.8 1.9 8.6 6.1 6.0 67.0 30.1 151.4 116.5 Consolidated net sales $ 820.9 $ 694.8 $ 563.6 $ 826.4 $ 271.8 $ 334.4 $ 511.8 $ 524.6 $ 2,168.1 $ 2,380.2 Nine Months Ended September 30, Broadband Home OWN VCN Total 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Contract type: Product contracts $ 1,885.0 $ 1,520.5 $ 1,777.3 $ 1,702.3 $ 931.8 $ 1,165.8 $ 1,281.9 $ 1,383.8 $ 5,876.0 $ 5,772.4 Other contracts 221.3 170.2 11.8 13.1 17.2 17.6 177.8 73.1 428.1 274.0 Consolidated net sales $ 2,106.3 $ 1,690.7 $ 1,789.1 $ 1,715.4 $ 949.0 $ 1,183.4 $ 1,459.7 $ 1,456.9 $ 6,304.1 $ 6,046.4 The Other contracts line above primarily includes service contracts and project contracts with multiple performance obligations. Further information on net sales by reportable segment and geographic region is included in Note 9. Allowance for Doubtful Accounts Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Allowance for doubtful accounts, beginning of period $ 43.4 $ 25.6 $ 35.4 $ 17.4 Charged to costs and expenses (1.5 ) 6.8 6.9 13.8 Write-offs (0.3 ) — (2.9 ) (0.1 ) Recoveries — 0.2 1.5 0.2 Foreign exchange and other 1.5 — 2.2 1.3 Allowance for doubtful accounts, end of period $ 43.1 $ 32.6 $ 43.1 $ 32.6 Customer Contract Balances The following table provides the balance sheet location and amounts of contract assets and liabilities from contracts with customers as of September 30, 2020 and December 31, 2019. Balance Sheet Location September 30, 2020 December 31, 2019 Unbilled accounts receivable Accounts receivable, less allowance for doubtful accounts $ 34.3 $ 28.6 Deferred revenue Accrued and other liabilities and Other noncurrent liabilities 144.5 122.2 There were no material changes to contract asset balances for the three or nine months ended September 30, 2020 as a result of changes in estimates or impairments. As of September 30, 2020, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied and that have a duration of one year or less was $99.0 million, with the remaining $45.5 million having a duration greater than one year. Contract Liabilities The following table presents the changes in deferred revenue for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 122.2 $ 7.6 Fair value of deferred revenue acquired in ARRIS acquisition — 90.1 Deferral of revenue 142.5 78.2 Recognition of unearned revenue (120.2 ) (61.1 ) Balance at end of period $ 144.5 $ 114.8 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 5. LEASES The Company has operating type leases for real estate, equipment and vehicles in the U.S. and internationally. As of September 30, 2020, the Company had no 9 years The Company occasionally subleases all or a portion of certain unutilized real estate facilities. As of September 30, 2020 and 2019, the Company’s sublease arrangements were classified as operating type leases and the income amounts were not material for the three or nine months ended September 30, 2020 and 2019. See Note 10 for discussion of the impairments of operating lease right of use assets during the three and nine months ended September 30, 2020. Supplemental cash flow information related to operating leases: Nine Months Ended September 30, 2020 2019 Operating cash paid to settle lease liabilities $ 55.8 $ 49.2 Right of use asset additions in exchange for lease liabilities 17.1 21.3 Supplemental balance sheet information related to operating leases: Balance Sheet Location September 30, 2020 December 31, 2019 Right of use assets Other noncurrent assets $ 175.1 $ 204.9 Lease liabilities Accrued and other liabilities $ 62.5 $ 61.7 Lease liabilities Other noncurrent liabilities 129.9 160.4 Total lease liabilities $ 192.4 $ 222.1 In the table above, the right of use assets balance as of December 31, 2019 has been revised to correct an immaterial error in presentation. This error did not affect the right of use assets balance included in the o ther noncurrent assets line in the Condensed C onsolidated B alance S heet s as of December 31, 2019. Weighted average remaining lease term (in years) 3.9 Weighted average discount rate 6.9 % Future minimum lease payments under non-cancellable leases as of September 30, 2020: Operating Leases Remainder of 2020 $ 20.1 2021 69.9 2022 46.7 2023 36.1 2024 25.2 Thereafter 24.6 Total minimum lease payments $ 222.6 Less: imputed interest (30.2 ) Total $ 192.4 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | 6. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories September 30, 2020 December 31, 2019 Raw materials $ 279.9 $ 240.1 Work in process 148.7 121.6 Finished goods 675.9 614.2 $ 1,104.5 $ 975.9 Accrued and Other Liabilities September 30, 2020 December 31, 2019 Compensation and employee benefit liabilities $ 268.4 $ 187.3 Operating lease liabilities 62.5 61.7 Accrued interest 59.3 97.8 Deferred revenue 99.0 82.6 Accrued royalties 40.2 63.9 Product warranty accrual 45.0 42.8 Restructuring reserve 36.0 24.0 Income taxes payable 15.4 15.8 Value-added taxes payable 28.6 27.3 Contract manufacturing liability 39.4 25.4 Patent claims and litigation 47.1 70.1 Other 137.4 163.3 $ 878.3 $ 862.0 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, 2020 2019 2020 2019 Foreign currency translation Balance at beginning of period $ (227.7 ) $ (140.4 ) $ (162.7 ) $ (140.5 ) Other comprehensive income (loss) 63.7 (76.6 ) (1.3 ) (78.2 ) Amounts reclassified from AOCL — — — 1.7 Balance at end of period $ (164.0 ) $ (217.0 ) $ (164.0 ) $ (217.0 ) Hedging instruments Balance at beginning of period $ (21.8 ) $ (13.3 ) $ (8.9 ) $ (1.4 ) Other comprehensive income (loss) (9.0 ) 7.9 (21.9 ) (4.0 ) Balance at end of period $ (30.8 ) $ (5.4 ) $ (30.8 ) $ (5.4 ) Defined benefit plan activity Balance at beginning of period $ (25.9 ) $ (17.4 ) $ (25.4 ) $ (17.3 ) Amounts reclassified from AOCL (0.1 ) (0.1 ) (0.6 ) (0.2 ) Balance at end of period $ (26.0 ) $ (17.5 ) $ (26.0 ) $ (17.5 ) Net AOCL at end of period $ (220.8 ) $ (239.9 ) $ (220.8 ) $ (239.9 ) Amounts reclassified from net AOCL related to foreign currency translation and defined benefit plans are recorded in other income (expense), net in the Condensed Consolidated Statements of Operations. Cash Flow Information Nine Months Ended September 30, 2020 2019 Cash paid during the period for: Income taxes, net of refunds $ 61.8 $ 82.5 Interest 451.8 353.3 |
Financing
Financing | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Financing | 7. FINANCING September 30, 2020 December 31, 2019 7.125% senior notes due July 2028 $ 700.0 $ — 5.00% senior notes due March 2027 750.0 750.0 8.25% senior notes due March 2027 1,000.0 1,000.0 6.00% senior notes due June 2025 1,400.0 1,500.0 5.50% senior notes due June 2024 — 650.0 5.00% senior notes due June 2021 — 150.0 6.00% senior secured notes due March 2026 1,500.0 1,500.0 5.50% senior secured notes due March 2024 1,250.0 1,250.0 Senior secured term loan due April 2026 3,168.0 3,192.0 Senior secured revolving credit facility — — Total principal amount of debt $ 9,768.0 $ 9,992.0 Less: Original issue discount, net of amortization (25.9 ) (29.2 ) Less: Debt issuance costs, net of amortization (120.8 ) (130.4 ) Less: Current portion (32.0 ) (32.0 ) Total long-term debt $ 9,589.3 $ 9,800.4 See Note 8 in the Notes to Consolidated Financial Statements in the 2019 Annual Report for additional information on the terms and conditions of the Company’s debt obligations except the new 7.125% senior notes due 2028 (the 2028 Notes), which are described below. In August 2020, the Company redeemed $100.0 million aggregate principal amount of the 6.00% senior notes due 2025 (the 2025 Notes). The redemption of the 2025 Notes resulted in a charge of $3.0 million which is reflected in other income (expense), net during the three and nine months ended September 30, 2020. In connection with the redemption, $1.3 million of debt issuance costs was written off and included in interest expense during the three and nine months ended September 30, 2020. 7.125% Senior Notes due July 2028 On July 1, 2020, the Company issued $700.0 million aggregate principal amount of the 2028 Notes. The Company will pay interest on the 2028 Notes semi-annually in arrears on July 1 and January 1 of each year, commencing on January 1, 2021. Unless repurchased or redeemed earlier, the 2028 Notes will mature on July 1, 2028. The 2028 Notes were offered in a private placement exempt from registration under the Securities Act of 1933, as amended (the Securities Act), to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside of the United States in reliance on Regulation S under the Securities Act. The Company used the net proceeds from the offering of the 2028 Notes, together with cash on hand, to redeem and retire all of the outstanding 5.00% senior notes due 2021 (the 2021 Notes) and the outstanding 5.50% senior notes due 2024 (the 2024 Notes) and pay fees and expenses related to the transaction. The redemption of the 2024 Notes resulted in a charge of $11.9 million which is reflected in other income (expense), net during the three and nine months ended September 30, 2020. In connection with the redemptions of the 2021 Notes and the 2024 Notes, including the $100.0 million redemption of the 2021 Notes in February 2020, $4.7 million and $5.0 million of debt issuance costs were written off and included in interest expense during the three and nine months ended September 30, 2020, respectively. The 2028 Notes are guaranteed on a senior unsecured basis by each of CommScope, Inc.’s existing and future wholly owned domestic restricted subsidiaries that is an obligor under the senior secured credit facilities or certain other capital markets debt, subject to certain exceptions. The 2028 Notes and the related guarantees rank senior in right of payment to all of CommScope, Inc.’s and the guarantors’ subordinated indebtedness and equally in right of payment with all of CommScope, Inc.’s and the guarantors’ senior indebtedness (without giving effect to collateral arrangements). The 2028 Notes and the related guarantees are effectively junior to all of CommScope, Inc.’s and the guarantors’ existing and future secured indebtedness to the extent of the value of the assets securing such secured indebtedness. In addition, the 2028 Notes and related guarantees are structurally subordinated to all existing and future liabilities (including trade payables) of CommScope, Inc.’s subsidiaries that do not guarantee the 2028 Notes. The 2028 Notes may be redeemed prior to maturity under certain circumstances. Upon certain change of control events, the 2028 Notes may be redeemed at the option of the holders at 101 % of their principal amount, plus accrued and unpaid interest. The 2028 Notes may be redeemed by CommScope, Inc. on or after July 1, 2023 at the redemption prices specified in the indenture governing the 2028 Notes. Prior to July 1, 2023 , the 2028 Notes may be redeemed by CommScope, Inc. at a redemption price equal to 100 % of their principal amount, plus a make-whole premium (as specified in the indenture governing the 2028 Notes), plus accrued and unpaid interest. Prior to July 1, 2023 , under certain circumstances, CommScope, Inc. may also redeem up to 40 % of the aggregate principal amount of the 2028 Notes at a redemption price of 107.125 %, plus accrued and unpaid interest, using the proceeds of certain equity offerings. In connection with issuing the 2028 Notes, the Company incurred costs of $11.6 million during the three and nine months ended September 30, 2020 which were recorded as a reduction of the carrying amount of the debt and are being amortized over the term of the 2028 Notes. Senior Secured Credit Facilities In April 2020, the Company borrowed $250.0 million under the senior secured asset-based revolving credit facility (the Revolving Credit Facility). The Company repaid the $250.0 million, plus accrued interest, in July 2020. As of September 30, 2020, the Company had no outstanding borrowings under the Revolving Credit Facility and had availability of $733.6 million, after giving effect to borrowing base limitations and outstanding letters of credit. During the three and nine months ended September 30, 2020, the Company made quarterly scheduled amortization payments of $8.0 million and $24.0 million, respectively, on the senior secured term loan due in 2026 (the 2026 Term Loan). The current portion of long-term debt reflects $32.0 million of repayments due under the 2026 Term Loan. No portion of the 2026 Term Loan was reflected as a current portion of long-term debt as of September 30, 2020 related to the potentially required excess cash flow payment because the amount that may be payable in 2021, if any, cannot currently be reliably estimated. Other Matters The following table summarizes scheduled maturities of long-term debt as of September 30, 2020: Remainder of 2020 2021 2022 2023 2024 Thereafter Scheduled maturities of long-term debt $ 8.0 $ 32.0 $ 32.0 $ 32.0 $ 1,282.0 $ 8,382.0 The Company’s non-guarantor subsidiaries held $2,533 million, or 19%, of total assets and $946 million, or 8%, of total liabilities as of September 30, 2020 and accounted for $637 million, or 29% and $1,834 million, or 29%, of net sales for the three and nine months ended September 30, 2020, respectively. As of December 31, 2019, the non-guarantor subsidiaries held $3,773 million, or 26%, of total assets and $714 million, or 6%, of total liabilities. For the three and nine months ended September 30, 2019, the non-guarantor subsidiaries accounted for $399 million, or 17%, and $1,770 million, or 29%, of net sales, respectively. All amounts presented exclude intercompany balances. The weighted average effective interest rate on outstanding borrowings, including the impact of the interest rate swap, and the amortization of debt issuance costs and original issue discount, was 5.87% and 6.17% at September 30, 2020 and December 31, 2019, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, debt instruments, interest rate derivatives and foreign currency contracts. For cash and cash equivalents, trade receivables and trade payables, the carrying amounts of these financial instruments as of September 30, 2020 and December 31, 2019 were considered representative of their fair values due to their short terms to maturity. The fair values of the Company’s debt instruments, interest rate derivatives and foreign currency contracts were based on indicative quotes. Fair value measurements using quoted prices in active markets for identical assets and liabilities fall within Level 1 of the fair value hierarchy, measurements using significant other observable inputs fall within Level 2, and measurements using significant unobservable inputs fall within Level 3. The carrying amounts, estimated fair values and valuation input levels of the Company’s debt instruments, interest rate derivatives and foreign currency contracts as of September 30, 2020 and December 31, 2019, are as follows: September 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Valuation Inputs Assets: Foreign currency contracts $ 5.5 $ 5.5 $ 10.7 $ 10.7 Level 2 Liabilities: 7.125% senior notes due 2028 $ 700.0 $ 722.8 $ — $ — Level 2 5.00% senior notes due 2027 750.0 720.0 750.0 696.4 Level 2 8.25% senior notes due 2027 1,000.0 1,040.0 1,000.0 1,052.5 Level 2 6.00% senior notes due 2025 1,400.0 1,415.5 1,500.0 1,501.7 Level 2 5.50% senior notes due 2024 — — 650.0 656.0 Level 2 5.00% senior notes due 2021 — — 150.0 149.9 Level 2 6.00% senior secured notes due 2026 1,500.0 1,560.0 1,500.0 1,595.6 Level 2 5.50% senior secured notes due 2024 1,250.0 1,281.6 1,250.0 1,302.1 Level 2 Senior secured term loan due 2026 3,168.0 3,092.8 3,192.0 3,219.9 Level 2 Senior secured revolving credit facility — — — — Level 2 Foreign currency contracts 9.4 9.4 5.9 5.9 Level 2 Interest rate swap contracts 33.8 33.8 16.3 16.3 Level 2 Non-Recurring Fair Value Measurements During the three and nine months ended September 30, 2020, the Company recorded a pretax impairment charge of $2.6 million related to right of use operating lease assets associated with restructuring activities (see Note 10). The fair value of the right of use assets was determined using a discounted cash flow (DCF) model where the fair value was based upon the present value of the anticipated sublease cash flows utilizing information gathered from third party analysis. The inputs in the DCF model were Level 3 inputs. During the second quarter of 2020, the Company recorded a pretax goodwill impairment charge of $206.7 million related to the Home Networks reporting unit in the Home segment (see Note 3). The fair value of the reporting unit was determined as of May 31, 2020 using a DCF model. Under the DCF method, the fair value of a reporting unit is based on the present value of estimated future cash flows. The inputs to the DCF model were 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, 2020 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | 9. SEGMENTS AND GEOGRAPHIC INFORMATION As of January 1, 2020, the Company reorganized its internal management and reporting structure as part of the integration of the Acquisition. The reorganization changed the information regularly reviewed by the Company’s chief operating decision maker for purposes of allocating resources and assessing performance. As a result, the Company is reporting financial performance based on four reportable segments: Broadband, Home, OWN and VCN. These reportable segments are based upon the nature of the products and services they offer. The Broadband segment provides an end-to-end product portfolio serving the telco and cable provider broadband market. The segment brings together the Network Cable and Connectivity business with the Network and Cloud business and includes converged cable access platform, passive optical networking, video systems, access technologies, fiber and coaxial cable, fiber and copper connectivity and hardened closures. The Home segment comprises the former Consumer Premises Equipment business and focuses on the future of the connected home and connected devices inside the home. The segment includes subscriber-based solutions that support broadband and video applications connecting cable, telecommunications and satellite service providers to a customer’s home and adds wireless connectivity or other wired connections integrating in-home devices together to enable the consumption of internet-based services and the delivery of broadcast, streamed and stored video to televisions and other connected devices. 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 IPTV content delivery and include products such as digital video recorders, high definition set top boxes and hybrid set top devices. The OWN segment focuses on the macro and metro cell markets. The segment includes base station antennas, RF filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel accessories, Spectrum Access System and Comsearch. As the Company’s wireless operator customers shift a portion of their 5G capital expenditures from the macro tower to the metro cell, the portfolio will strategically help to make the transition smooth and cost-effective. The VCN segment targets both public and private networks for campuses, venues, data centers and buildings. The segment combines Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells and enterprise fiber and copper infrastructure. The following table provides summary financial information by reportable segment: September 30, 2020 December 31, 2019 Identifiable segment-related assets: Broadband $ 6,494.5 $ 6,681.1 Home 1,763.3 2,178.7 OWN 1,237.2 1,394.1 VCN 3,385.1 3,476.4 Total identifiable segment-related assets 12,880.1 13,730.3 Reconciliation to total assets: Cash and cash equivalents 582.8 598.2 Deferred income tax assets 238.1 103.1 Total assets $ 13,701.0 $ 14,431.6 T he Company ’s measure of segment performance is adjusted EBITDA (earnings before interest, income taxes , depreciation and amortization ) . The Company defines adjusted EBITDA as operating income , adjusted to exclude depreciation, amortization of intangible assets , restructuring costs, asset impairments , equity-based compensation , transaction 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, 2020 2019 2020 2019 Net sales: Broadband $ 820.9 $ 694.8 $ 2,106.3 $ 1,690.7 Home 563.6 826.4 1,789.1 1,715.4 OWN 271.8 334.4 949.0 1,183.4 VCN 511.8 524.6 1,459.7 1,456.9 Consolidated net sales $ 2,168.1 $ 2,380.2 $ 6,304.1 $ 6,046.4 Segment adjusted EBITDA: Broadband $ 204.2 $ 153.5 $ 427.2 $ 329.6 Home 28.5 59.7 75.8 121.8 OWN 53.6 75.3 218.4 312.6 VCN 55.6 81.3 131.6 209.8 Total segment adjusted EBITDA 341.9 369.8 853.0 973.8 Amortization of intangible assets (158.1 ) (163.9 ) (473.5 ) (387.3 ) Restructuring costs, net (40.3 ) (19.5 ) (83.6 ) (78.3 ) Equity-based compensation (34.0 ) (28.0 ) (90.0 ) (58.7 ) Asset impairments — — (206.7 ) — Transaction and integration costs (4.8 ) (2.2 ) (17.8 ) (189.8 ) Acquisition accounting adjustments (5.1 ) (108.7 ) (15.8 ) (272.9 ) Patent claims and litigation 1.4 (55.0 ) (11.4 ) (55.0 ) Executive severance (6.3 ) — (6.3 ) — Depreciation (38.9 ) (43.3 ) (118.7 ) (101.0 ) Consolidated operating income (loss) $ 55.8 $ (50.8 ) $ (170.8 ) $ (169.2 ) Depreciation expense: Broadband $ 14.8 $ 17.7 $ 44.8 $ 39.4 Home 8.3 10.7 26.3 20.1 OWN 4.1 4.3 12.7 13.2 VCN 11.7 10.6 34.9 28.3 Consolidated depreciation expense $ 38.9 $ 43.3 $ 118.7 $ 101.0 Additions to property, plant and equipment: Broadband $ 11.1 $ 10.1 $ 32.7 $ 28.2 Home 3.7 1.5 10.7 3.9 OWN 6.1 2.8 12.9 12.2 VCN 4.9 9.9 17.2 28.0 Consolidated additions to property, plant and equipment $ 25.8 $ 24.3 $ 73.5 $ 72.3 Sales to customers located outside of the U.S. comprised 39.2% and 38.3% of total net sales for the three and nine months ended September 30, 2020, respectively, compared to 39.8% and 40.9% of total net sales for the three and nine months ended September 30, 2019, respectively. Sales by geographic region, based on the destination of product shipments, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States $ 1,318.2 $ 1,432.7 $ 3,892.3 $ 3,572.5 Europe, Middle East and Africa 407.3 423.1 1,161.4 1,124.3 Asia Pacific 219.1 251.3 598.5 665.9 Caribbean and Latin America 149.9 187.6 432.3 476.5 Canada 73.6 85.5 219.6 207.2 Consolidated net sales $ 2,168.1 $ 2,380.2 $ 6,304.1 $ 6,046.4 |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 10. RESTRUCTURING COSTS The Company incurs costs associated with restructuring initiatives intended to improve overall operating performance and profitability. The costs related to restructuring actions are generally cash-based and primarily consist of employee-related costs, which include severance and other one-time termination benefits. In addition to the employee-related costs, the Company also records other costs associated to restructuring actions, such as impairment costs arising from unutilized real estate or equipment. As a result of prior restructuring and consolidation actions, the Company owns unutilized real estate and is attempting to sell or lease this unutilized space. Additional impairment charges may be incurred related to these or other excess assets, which are recorded as other associated costs. The Company’s net pretax restructuring charges, by segment, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Broadband $ 11.7 $ 5.4 $ 16.9 $ 31.1 Home 3.8 6.8 27.9 21.9 OWN 5.9 1.1 9.8 6.9 VCN 18.9 6.2 29.0 18.4 Total $ 40.3 $ 19.5 $ 83.6 $ 78.3 Restructuring liabilities were included in the Company’s Condensed Consolidated Balance Sheets as follows: September 30, 2020 December 31, 2019 Accrued and other liabilities $ 36.0 $ 24.0 Other noncurrent liabilities 5.2 4.4 Total liability $ 41.2 $ 28.4 ARRIS Integration Restructuring Actions In anticipation of and following the Acquisition, the Company initiated a series of restructuring actions, which are currently ongoing, to integrate and streamline operations and achieve cost synergies. The activity within the liability established for the ARRIS integration restructuring actions was as follows: Employee- Related Costs Other Associated Costs Total Balance at June 30, 2020 $ 25.5 $ 1.7 $ 27.2 Additional charge recorded 37.1 3.2 40.3 Cash paid (23.5 ) (1.3 ) (24.8 ) Non-cash items — (2.6 ) (2.6 ) Balance at September 30, 2020 $ 39.1 $ 1.0 $ 40.1 Balance at December 31, 2019 $ 23.1 $ 2.0 $ 25.1 Additional charge recorded 80.1 3.5 83.6 Cash paid (64.1 ) (1.6 ) (65.7 ) Non-cash items — (2.9 ) (2.9 ) Balance at September 30, 2020 $ 39.1 $ 1.0 $ 40.1 The ARRIS integration actions include headcount reductions in manufacturing, sales, engineering, marketing and administrative functions. The Company expects to make cash payments of $16.9 million during the remainder of 2020 and additional cash payments of $23.2 million between 2021 and 2022 to settle the announced ARRIS integration initiatives. The Company has recognized restructuring charges of $169.7 million since the Acquisition for integration and synergy actions. Additional restructuring actions related to the ARRIS integration are expected to be identified and the resulting charges and cash requirements are expected to be material. In addition, during the three and nine months ended September 30, 2020, other associated costs include a $2.6 million impairment of operating lease right of use assets related to ceasing use and consolidating operations at certain locations as part of restructuring activities. This impairment expense is included in restructuring costs, net on the Company's Condensed Consolidated Statements of Operations. Prior to recording these impairments, the carrying value of the right of use assets related to these properties was $5.1 million. The Company estimated that the fair market value of the remaining right of use assets after impairment was $2.5 million. BNS Integration Restructuring Actions Following the acquisition of the Broadband Network Solutions (BNS) business in 2015, the Company initiated a series of restructuring actions to integrate and streamline operations and achieve cost synergies. The BNS integration actions included the announced closures or reduction in activities at various U.S. and international facilities as well as headcount reductions in sales, marketing and administrative functions. The Company has recognized restructuring charges of $153.0 million since the BNS acquisition for integration actions. No additional restructuring actions are expected in connection with the BNS integration initiatives. The Company has accrued $1.1 million for these BNS integration restructuring actions as of September 30, 2020. The Company paid $2.2 million during the nine months ended September 30, 2020 and expects to make cash payments of $0.4 million during the remainder of 2020 and additional cash payments of $0.7 million between 2021 and 2022. |
Series A Convertible Preferred
Series A Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Series A Convertible Preferred Stock | 11. SERIES A CONVERTIBLE PREFERRED STOCK On April 4, 2019, the Company issued and sold 1,000,000 shares of the Convertible Preferred Stock to Carlyle for $1.0 billion, or $1,000 per share, pursuant to an Investment Agreement between the Company and Carlyle, dated November 8, 2018. The Convertible Preferred Stock is convertible at the option of the holders at any time into shares of CommScope common stock at an initial conversion rate of 36.3636 shares of common stock per share of the Convertible Preferred Stock (equivalent to $27.50 per common share). The conversion rate is subject to customary anti-dilution and other adjustments. Holders of the Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per year, payable quarterly in arrears. Dividends can be paid in cash, in-kind through the issuance of additional shares of the Convertible Preferred Stock or any combination of the two, at the Company’s option. During the three and nine months ended September 30, 2020, the Company paid dividends in-kind of $14.1 million and $41.8 million, respectively, which was recorded as additional Convertible Preferred Stock on the Condensed Consolidated Balance Sheets. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 12. STOCKHOLDERS’ EQUITY Equity-Based Compensation Plans As of September 30, 2020, $138.3 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 1.4 years. There were no significant capitalized equity-based compensation costs at September 30, 2020. 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, 2020 2019 2020 2019 Selling, general and administrative $ 18.6 $ 17.6 $ 49.3 $ 38.5 Cost of sales 5.5 3.7 14.5 7.7 Research and development 9.9 6.7 26.2 12.5 Total equity-based compensation expense $ 34.0 $ 28.0 $ 90.0 $ 58.7 Stock Options Stock options are awards that allow the recipient to purchase shares of the Company’s common stock at a fixed price. Stock options are granted at an exercise price equal to the Company’s stock price at the date of grant. These awards vest over three to five years following the grant date and have a contractual term of ten years. These awards vest based on a time-based component or a combination of time and performance-based components. The following table summarizes the stock option activity (in millions, except per share data and years): Shares Weighted Average Option Exercise Price Per Share Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding at June 30, 2020 9.2 $ 17.57 Expired — $ — Forfeited (0.1 ) $ 18.60 Options outstanding at September 30, 2020 9.1 $ 17.54 6.3 $ 6.9 Options outstanding at December 31, 2019 9.6 $ 17.70 Exercised (0.1 ) $ 8.25 Expired (0.1 ) $ 30.29 Forfeited (0.3 ) $ 20.05 Options outstanding at September 30, 2020 9.1 $ 17.54 6.3 $ 6.9 Options vested at September 30, 2020 3.9 $ 15.74 3.2 $ 6.9 Options unvested at September 30, 2020 5.2 $ 18.88 8.6 $ — The exercise prices of outstanding options at September 30, 2020 were in the following ranges (in millions, except per share data and years): Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life in Years Weighted Average Exercise Price Per Share Shares Weighted Average Exercise Price Per Share $2.96 to $5.74 2.1 0.3 $ 5.74 2.1 $ 5.74 $5.75 to $22.99 5.7 8.6 $ 18.33 0.6 $ 17.60 $23.00 to $42.32 1.3 6.0 $ 33.35 1.2 $ 32.84 $2.96 to $42.32 9.1 6.3 $ 17.54 3.9 $ 15.74 The Company uses the Black-Scholes model to estimate the fair value of stock option awards at the date of grant. Key inputs and assumptions used in the model include the grant date fair value of common stock, exercise price of the award, the expected option term, the risk-free interest rate, stock price volatility and the Company’s projected dividend yield. The expected term represents the period over which the Company’s employees are expected to hold their options. The risk-free interest rate reflects the yield on zero-coupon U.S. treasury securities with a term equal to the option’s expected term. Expected volatility is derived based on the historical volatility of the Company’s stock. The Company’s projected dividend yield is zero. The Company believes the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair values of its stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards. Subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. There were no stock option awards granted during the three or nine months ended September 30, 2020. The following table presents the weighted average assumptions used to estimate the fair value of stock option awards granted during the three and nine months ended September 30, 2019. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Expected option term (in years) 6.4 6.3 Risk-free interest rate 1.6 % 2.2 % Expected volatility 40.0 % 40.0 % Weighted average exercise price $ 12.20 $ 18.47 Weighted average fair value at grant date $ 5.21 $ 8.00 Restricted Stock Units RSUs entitle the holder to shares of common stock after a vesting period that generally ranges from one to 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 Stock Units Weighted Average Grant Date Fair Value Per Share Non-vested share units at June 30, 2020 15.0 $ 14.28 Granted — $ — Vested and shares issued (1.4 ) $ 17.29 Forfeited (0.6 ) $ 14.27 Non-vested share units at September 30, 2020 13.0 $ 13.94 Non-vested share units at December 31, 2019 7.7 $ 22.30 Granted 9.6 $ 10.57 Vested and shares issued (3.2 ) $ 23.12 Forfeited (1.1 ) $ 16.26 Non-vested share units at September 30, 2020 13.0 $ 13.94 Performance Share Units Performance share units (PSUs) are stock-based awards in which the number of shares ultimately received by the employee depends on Company performance against specified targets. Such awards typically vest over three years and the number of shares issued can vary from 0% to 200% of the number of PSUs granted, depending on performance. The fair value of each PSU is determined on the date of grant based on the Company’s stock price. The ultimate number of shares issued and the related compensation cost recognized is based on the final performance metrics compared to the targets specified in the grants. The following table summarizes the PSU activity (in millions, except per share data): Performance Share Units Weighted Average Grant Date Fair Value Per Share Non-vested share units at June 30, 2020 2.7 $ 7.73 Granted — $ — Vested and shares issued (0.1 ) $ 6.67 Forfeited (0.2 ) $ 10.00 Non-vested share units at September 30, 2020 2.4 $ 7.66 Non-vested share units at December 31, 2019 2.7 $ 12.47 Granted 0.2 $ 10.32 Vested and shares issued (0.2 ) $ 17.63 Forfeited (0.3 ) $ 9.26 Non-vested share units at September 30, 2020 2.4 $ 7.66 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. SUBSEQUENT EVENTS On October 13, 2020, the Company informed holders of the 2025 Notes that it would redeem $100.0 million aggregate principal amount of the 2025 Notes on October 23, 2020. The redemption price included the accrued and unpaid interest up to the date of redemption. Following the redemption, $1,300.0 million aggregate principal amount of the 2025 Notes remained outstanding. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for these interim periods are not necessarily indicative of the results of operations to be expected for any future period or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the 2019 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 2019 Annual Report. Other than the enhancements described below to the allowance for doubtful accounts policy as a result of the adoption of Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable and contract assets for unbilled receivables are stated at the amount owed by the customer, net of allowances for estimated doubtful accounts, discounts, returns and rebates. The Company measures the allowance for doubtful accounts using an expected credit loss model, which uses a lifetime expected loss allowance for all trade accounts receivable and contract assets. To measure the expected credit losses, trade accounts receivable and contract assets are grouped based on shared credit risk characteristics and the days past due. Contract assets relate to unbilled work in progress and have substantially the same risk characteristics as trade accounts receivable for the same types of contracts. Therefore, the Company has concluded that the expected loss rates for trade accounts receivables are a reasonable approximation of the loss rates for the contract assets. In calculating an allowance for doubtful accounts, the Company uses its historical experience, external indicators and forward-looking information to calculate expected credit losses using an aging method. The Company assesses impairment of trade accounts receivable on a collective basis as they possess shared credit risk characteristics which have been grouped based on the days past due. The expected loss rates are based on the payment profiles of sales over the preceding thirty-six months and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle their trade accounts receivable. |
Concentrations of Risk and Related Party Transactions | Concentrations of Risk and Related Party Transactions Net sales to Comcast Corporation and affiliates (Comcast) accounted for 11% of the Company’s total net sales during the three and nine months ended September 30, 2020. No other direct customer accounted for 10% or more of the Company’s total net sales. Net sales to Comcast accounted for 15% and 10% of the Company’s total net sales during the three and nine months ended September 30, 2019, respectively. Other than Comcast, no other direct customer accounted for 10% or more of the Company’s total net sales during the three and nine months ended September 30, 2019. No direct customer accounted for 10% or more of the Company’s accounts receivable as of September 30, 2020. 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, 2020, 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. See Note 11 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, 2020. |
Product Warranties | Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods, depending upon the product subject to the warranty and the terms of the individual agreements. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product warranty accrual, beginning of period $ 55.9 $ 66.6 $ 61.0 $ 15.6 Obligation assumed under ARRIS acquisition — — — 57.4 Provision for warranty claims 10.3 6.5 20.1 12.5 Warranty claims paid (8.4 ) (9.3 ) (22.8 ) (21.7 ) Foreign exchange 0.2 — (0.3 ) — Product warranty accrual, end of period $ 58.0 $ 63.8 $ 58.0 $ 63.8 |
Commitments and Contingencies | Commitments and Contingencies The Company is party to certain intellectual property claims and periodically receives notices asserting that its products infringe on another party’s patents and other intellectual property rights. These claims and assertions, whether against the Company directly or against its customers, could require the Company to pay damages, royalties, stop offering the relevant products and/or cease other activities. The Company may also be called upon to indemnify certain customers for costs related to products sold to such customers. While the outcome of the claims and notices is uncertain and a reasonable estimate of the loss from unfavorable outcomes in certain of these matters cannot be determined, an adverse outcome could result in a material loss. As of September 30, 2020, the Company had a liability of $59.4 million recorded in accrued and other liabilities on the Condensed Consolidated Balance Sheets related to certain intellectual property assertions that have been settled or are in process of settlement. Of that amount, $48.5 million was assumed in the Acquisition. The Company paid $66.2 million during the nine months ended September 30, 2020 to settle intellectual property assertions and expects to pay an additional $39.8 million in the fourth quarter of 2020. For the three and nine months ended September 30, 2020, the Company recorded a charge (credit) to cost of sales in the Condensed Consolidated Statements of Operations of $(9.9) million and $2.8 million, respectively related to these intellectual property assertions. These amounts are primarily reflected in the results of the Home and VCN segments. The Company is either a plaintiff or a defendant in certain other pending legal matters in the normal course of business. Management believes none of these other pending legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. |
Asset Impairments | Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. There were no indicators of goodwill impairment identified during the three months ended September 30, 2020. See Notes 3 and 8 for discussion of goodwill impairment charges during the nine months ended September 30, 2020. There were no indicators of goodwill impairment identified during the three or nine months ended September 30, 2019. Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are adjusted to estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment and are then measured at fair value if an impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three or nine months ended September 30, 2020 or 2019. See Note 10 for discussion of impairment charges related to restructuring actions. |
Income Taxes | Income Taxes For the three months ended September 30, 2020, the Company’s effective tax rate was (8.7)% and the Company recognized income tax expense of $9.3 million on a pretax loss of $107.0 million. The income tax expense on the Company’s pretax loss was driven by $19.2 million of tax expense related to a foreign tax rate change. For the nine months ended September 30, 2020, the Company’s effective tax rate was 5.9% and the Company recognized a tax benefit of $37.2 million on a pretax loss of $634.5 million. The Company’s tax benefit was less than the statutory rate of 21.0% in the nine months ended September 30, 2020 primarily due to a goodwill impairment charge of $206.7 million, for which minimal tax benefits were recorded, $22.7 million of tax expense related to state valuation allowances and $19.2 million in income tax expense related to a foreign tax rate change. For both the three and nine months ended September 30, 2020, the Company’s tax rate was also impacted favorably by federal tax credits and unfavorably by U.S. anti-deferral provisions and foreign withholding taxes. Excess tax costs of $1.2 million and $9.0 million related to equity compensation awards also impacted the income taxes unfavorably for the three and nine months ended September 30, 2020, respectively. For the three and nine months ended September 30, 2019, the Company’s effective income tax rate was 24.8% and 15.1%, respectively, and the Company recognized a tax benefit of $51.7 million on a pretax loss of $208.2 million and a tax benefit of $87.6 million on a pretax loss of $580.4 million, respectively. For the three and nine months ended September 30, 2019, our tax benefit was impacted favorably by the impact of federal tax credits, benefits recognized from adjustments related to prior years’ tax returns and the expiration of statutes of limitations on various uncertain tax positions and impacted unfavorably by the impact of U.S. anti-deferral provisions and foreign withholding taxes. Excess tax costs related to equity-based compensation awards had an unfavorable impact on our tax benefit of $1.1 million and $1.5 million for the three and nine months ended September 30, 2019, respectively. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) is computed by dividing net income (loss), less any dividends and deemed dividends related to the Convertible Preferred Stock, by the weighted average number of common shares outstanding during the period. The numerator in diluted EPS is based on the basic EPS numerator adjusted to add back any dividends and deemed dividends related to the Convertible Preferred Stock, subject to antidilution requirements. The denominator used in diluted EPS is based on the basic EPS computation plus the effect of potentially dilutive common shares related to the Convertible Preferred Stock and equity-based compensation plans, subject to antidilution requirements. For the three and nine months ended September 30, 2020, 18.9 million and 17.4 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because the effect was either antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2020, 4.7 million and 4.5 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the three and nine months ended September 30, 2019, 17.4 million shares and 10.8 million shares, respectively, were not included in the computation of diluted EPS because the effect was either antidilutive or the performance conditions were not met. Of those amounts, for the three and nine months ended September 30, 2019, 1.4 million shares and 2.3 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the three and nine months ended September 30, 2020 and 2019, 37.4 million and 36.9 million, respectively, and 36.4 million and 23.8 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were anti-dilutive; however, they would have been considered dilutive if the Company had not been in a net loss position. The following table presents the basis for the EPS computations (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net loss $ (116.3 ) $ (156.5 ) $ (597.3 ) $ (492.8 ) Dividends on Series A convertible preferred stock (14.1 ) (13.8 ) (41.8 ) (26.9 ) Deemed dividends on Series A convertible preferred stock — — — (3.0 ) Net loss attributable to common stockholders $ (130.4 ) $ (170.3 ) $ (639.1 ) $ (522.7 ) Denominator: Weighted average common shares outstanding - basic 196.9 194.1 195.9 193.5 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — — — — Weighted average common shares outstanding - diluted 196.9 194.1 195.9 193.5 Loss per share: Basic $ (0.66 ) $ (0.88 ) $ (3.26 ) $ (2.70 ) Diluted $ (0.66 ) $ (0.88 ) $ (3.26 ) $ (2.70 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted During the Nine Months Ended September 30, 2020 On January 1, 2020, the Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU No. 2018-19, ASU No. 2019-04, ASU No. 2019-05 and ASU No. 2020-02 (collectively, Topic 326) the incurred loss methodology with the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including trade accounts receivable. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842. The Company adopted Topic 326 using the modified retrospective method for all financial assets measured at amortized cost, which are primarily trade accounts receivable and contract assets for the Company. Results for reporting periods beginning after January 1, 2020 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The impact of adopting Topic 326 as of January 1, 2020 was not material to the consolidated financial statements. Issued but Not Adopted In August 2020, the (FASB) issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . The new guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share, along with expanded disclosures. ASU No. 2020-06 is effective for the Company as of January 1, 2022 and early adoption is permitted beginning January 1, 2021. The Company is evaluating the impact of the new guidance on the consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The Company can elect to apply the amendments as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01 , Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The new guidance is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. The amendments in this guidance clarify the interaction of accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU No. 2020-01 is effective for the Company as of January 1, 2021 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements. In December 2019 the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Activity in Product Warranty Accrual, Included in Accrued and Other Liabilities and Other Noncurrent Liabilities | The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product warranty accrual, beginning of period $ 55.9 $ 66.6 $ 61.0 $ 15.6 Obligation assumed under ARRIS acquisition — — — 57.4 Provision for warranty claims 10.3 6.5 20.1 12.5 Warranty claims paid (8.4 ) (9.3 ) (22.8 ) (21.7 ) Foreign exchange 0.2 — (0.3 ) — Product warranty accrual, end of period $ 58.0 $ 63.8 $ 58.0 $ 63.8 |
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, 2020 2019 2020 2019 Numerator: Net loss $ (116.3 ) $ (156.5 ) $ (597.3 ) $ (492.8 ) Dividends on Series A convertible preferred stock (14.1 ) (13.8 ) (41.8 ) (26.9 ) Deemed dividends on Series A convertible preferred stock — — — (3.0 ) Net loss attributable to common stockholders $ (130.4 ) $ (170.3 ) $ (639.1 ) $ (522.7 ) Denominator: Weighted average common shares outstanding - basic 196.9 194.1 195.9 193.5 Dilutive effect of as-if converted Series A convertible preferred stock — — — — Dilutive effect of equity-based awards — — — — Weighted average common shares outstanding - diluted 196.9 194.1 195.9 193.5 Loss per share: Basic $ (0.66 ) $ (0.88 ) $ (3.26 ) $ (2.70 ) Diluted $ (0.66 ) $ (0.88 ) $ (3.26 ) $ (2.70 ) |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segment | As a result of the change in segments as discussed in Note 1, goodwill was reallocated from the previous segments to the new segments. The following table presents goodwill after the reallocation by new reportable segment: Broadband Home OWN VCN Total Goodwill, gross at December 31, 2019 $ 3,355.1 $ 402.1 $ 666.0 $ 1,635.6 $ 6,058.8 Adjustments to preliminary purchase price (7.1 ) (1.3 ) — (1.4 ) (9.8 ) Foreign exchange and other 2.3 (1.3 ) — (2.1 ) (1.1 ) Goodwill, gross at September 30, 2020 3,350.3 399.5 666.0 1,632.1 6,047.9 Accumulated impairment charges at December 31, 2019 (193.6 ) (192.8 ) (159.5 ) (41.2 ) (587.1 ) Impairment charges for the nine months ended September 30, 2020 — (206.7 ) — — (206.7 ) Accumulated impairment at September 30, 2020 (193.6 ) (399.5 ) (159.5 ) (41.2 ) (793.8 ) Goodwill, net at September 30, 2020 $ 3,156.7 $ — $ 506.5 $ 1,590.9 $ 5,254.1 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Net Sales by Reportable Segment Disaggregated Based on Contract Type | The following table presents net sales by reportable segment, disaggregated based on contract type: Three Months Ended September 30, Broadband Home OWN VCN Total 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Contract type: Product contracts $ 744.5 $ 623.0 $ 561.7 $ 817.8 $ 265.7 $ 328.4 $ 444.8 $ 494.5 $ 2,016.7 $ 2,263.7 Other contracts 76.4 71.8 1.9 8.6 6.1 6.0 67.0 30.1 151.4 116.5 Consolidated net sales $ 820.9 $ 694.8 $ 563.6 $ 826.4 $ 271.8 $ 334.4 $ 511.8 $ 524.6 $ 2,168.1 $ 2,380.2 Nine Months Ended September 30, Broadband Home OWN VCN Total 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Contract type: Product contracts $ 1,885.0 $ 1,520.5 $ 1,777.3 $ 1,702.3 $ 931.8 $ 1,165.8 $ 1,281.9 $ 1,383.8 $ 5,876.0 $ 5,772.4 Other contracts 221.3 170.2 11.8 13.1 17.2 17.6 177.8 73.1 428.1 274.0 Consolidated net sales $ 2,106.3 $ 1,690.7 $ 1,789.1 $ 1,715.4 $ 949.0 $ 1,183.4 $ 1,459.7 $ 1,456.9 $ 6,304.1 $ 6,046.4 |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Allowance for doubtful accounts, beginning of period $ 43.4 $ 25.6 $ 35.4 $ 17.4 Charged to costs and expenses (1.5 ) 6.8 6.9 13.8 Write-offs (0.3 ) — (2.9 ) (0.1 ) Recoveries — 0.2 1.5 0.2 Foreign exchange and other 1.5 — 2.2 1.3 Allowance for doubtful accounts, end of period $ 43.1 $ 32.6 $ 43.1 $ 32.6 |
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 and liabilities from contracts with customers as of September 30, 2020 and December 31, 2019. Balance Sheet Location September 30, 2020 December 31, 2019 Unbilled accounts receivable Accounts receivable, less allowance for doubtful accounts $ 34.3 $ 28.6 Deferred revenue Accrued and other liabilities and Other noncurrent liabilities 144.5 122.2 |
Summary of Changes in Deferred Revenue | The following table presents the changes in deferred revenue for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 122.2 $ 7.6 Fair value of deferred revenue acquired in ARRIS acquisition — 90.1 Deferral of revenue 142.5 78.2 Recognition of unearned revenue (120.2 ) (61.1 ) Balance at end of period $ 144.5 $ 114.8 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases: Nine Months Ended September 30, 2020 2019 Operating cash paid to settle lease liabilities $ 55.8 $ 49.2 Right of use asset additions in exchange for lease liabilities 17.1 21.3 |
Summary of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases: Balance Sheet Location September 30, 2020 December 31, 2019 Right of use assets Other noncurrent assets $ 175.1 $ 204.9 Lease liabilities Accrued and other liabilities $ 62.5 $ 61.7 Lease liabilities Other noncurrent liabilities 129.9 160.4 Total lease liabilities $ 192.4 $ 222.1 In the table above, the right of use assets balance as of December 31, 2019 has been revised to correct an immaterial error in presentation. This error did not affect the right of use assets balance included in the o ther noncurrent assets line in the Condensed C onsolidated B alance S heet s as of December 31, 2019. Weighted average remaining lease term (in years) 3.9 Weighted average discount rate 6.9 % |
Summary of Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases as of September 30, 2020: Operating Leases Remainder of 2020 $ 20.1 2021 69.9 2022 46.7 2023 36.1 2024 25.2 Thereafter 24.6 Total minimum lease payments $ 222.6 Less: imputed interest (30.2 ) Total $ 192.4 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Inventories | Inventories September 30, 2020 December 31, 2019 Raw materials $ 279.9 $ 240.1 Work in process 148.7 121.6 Finished goods 675.9 614.2 $ 1,104.5 $ 975.9 |
Accrued and Other Liabilities | Accrued and Other Liabilities September 30, 2020 December 31, 2019 Compensation and employee benefit liabilities $ 268.4 $ 187.3 Operating lease liabilities 62.5 61.7 Accrued interest 59.3 97.8 Deferred revenue 99.0 82.6 Accrued royalties 40.2 63.9 Product warranty accrual 45.0 42.8 Restructuring reserve 36.0 24.0 Income taxes payable 15.4 15.8 Value-added taxes payable 28.6 27.3 Contract manufacturing liability 39.4 25.4 Patent claims and litigation 47.1 70.1 Other 137.4 163.3 $ 878.3 $ 862.0 |
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, 2020 2019 2020 2019 Foreign currency translation Balance at beginning of period $ (227.7 ) $ (140.4 ) $ (162.7 ) $ (140.5 ) Other comprehensive income (loss) 63.7 (76.6 ) (1.3 ) (78.2 ) Amounts reclassified from AOCL — — — 1.7 Balance at end of period $ (164.0 ) $ (217.0 ) $ (164.0 ) $ (217.0 ) Hedging instruments Balance at beginning of period $ (21.8 ) $ (13.3 ) $ (8.9 ) $ (1.4 ) Other comprehensive income (loss) (9.0 ) 7.9 (21.9 ) (4.0 ) Balance at end of period $ (30.8 ) $ (5.4 ) $ (30.8 ) $ (5.4 ) Defined benefit plan activity Balance at beginning of period $ (25.9 ) $ (17.4 ) $ (25.4 ) $ (17.3 ) Amounts reclassified from AOCL (0.1 ) (0.1 ) (0.6 ) (0.2 ) Balance at end of period $ (26.0 ) $ (17.5 ) $ (26.0 ) $ (17.5 ) Net AOCL at end of period $ (220.8 ) $ (239.9 ) $ (220.8 ) $ (239.9 ) Amounts reclassified from net AOCL related to foreign currency translation and defined benefit plans are recorded in other income (expense), net in the Condensed Consolidated Statements of Operations. |
Cash Flow Information | Cash Flow Information Nine Months Ended September 30, 2020 2019 Cash paid during the period for: Income taxes, net of refunds $ 61.8 $ 82.5 Interest 451.8 353.3 |
Financing (Tables)
Financing (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | September 30, 2020 December 31, 2019 7.125% senior notes due July 2028 $ 700.0 $ — 5.00% senior notes due March 2027 750.0 750.0 8.25% senior notes due March 2027 1,000.0 1,000.0 6.00% senior notes due June 2025 1,400.0 1,500.0 5.50% senior notes due June 2024 — 650.0 5.00% senior notes due June 2021 — 150.0 6.00% senior secured notes due March 2026 1,500.0 1,500.0 5.50% senior secured notes due March 2024 1,250.0 1,250.0 Senior secured term loan due April 2026 3,168.0 3,192.0 Senior secured revolving credit facility — — Total principal amount of debt $ 9,768.0 $ 9,992.0 Less: Original issue discount, net of amortization (25.9 ) (29.2 ) Less: Debt issuance costs, net of amortization (120.8 ) (130.4 ) Less: Current portion (32.0 ) (32.0 ) Total long-term debt $ 9,589.3 $ 9,800.4 |
Scheduled Maturities of Long-Term Debt | The following table summarizes scheduled maturities of long-term debt as of September 30, 2020: Remainder of 2020 2021 2022 2023 2024 Thereafter Scheduled maturities of long-term debt $ 8.0 $ 32.0 $ 32.0 $ 32.0 $ 1,282.0 $ 8,382.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Debt Instruments, Interest Rate Derivatives and Foreign Currency Contracts | The carrying amounts, estimated fair values and valuation input levels of the Company’s debt instruments, interest rate derivatives and foreign currency contracts as of September 30, 2020 and December 31, 2019, are as follows: September 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Valuation Inputs Assets: Foreign currency contracts $ 5.5 $ 5.5 $ 10.7 $ 10.7 Level 2 Liabilities: 7.125% senior notes due 2028 $ 700.0 $ 722.8 $ — $ — Level 2 5.00% senior notes due 2027 750.0 720.0 750.0 696.4 Level 2 8.25% senior notes due 2027 1,000.0 1,040.0 1,000.0 1,052.5 Level 2 6.00% senior notes due 2025 1,400.0 1,415.5 1,500.0 1,501.7 Level 2 5.50% senior notes due 2024 — — 650.0 656.0 Level 2 5.00% senior notes due 2021 — — 150.0 149.9 Level 2 6.00% senior secured notes due 2026 1,500.0 1,560.0 1,500.0 1,595.6 Level 2 5.50% senior secured notes due 2024 1,250.0 1,281.6 1,250.0 1,302.1 Level 2 Senior secured term loan due 2026 3,168.0 3,092.8 3,192.0 3,219.9 Level 2 Senior secured revolving credit facility — — — — Level 2 Foreign currency contracts 9.4 9.4 5.9 5.9 Level 2 Interest rate swap contracts 33.8 33.8 16.3 16.3 Level 2 |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment | The following table provides summary financial information by reportable segment: September 30, 2020 December 31, 2019 Identifiable segment-related assets: Broadband $ 6,494.5 $ 6,681.1 Home 1,763.3 2,178.7 OWN 1,237.2 1,394.1 VCN 3,385.1 3,476.4 Total identifiable segment-related assets 12,880.1 13,730.3 Reconciliation to total assets: Cash and cash equivalents 582.8 598.2 Deferred income tax assets 238.1 103.1 Total assets $ 13,701.0 $ 14,431.6 |
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, 2020 2019 2020 2019 Net sales: Broadband $ 820.9 $ 694.8 $ 2,106.3 $ 1,690.7 Home 563.6 826.4 1,789.1 1,715.4 OWN 271.8 334.4 949.0 1,183.4 VCN 511.8 524.6 1,459.7 1,456.9 Consolidated net sales $ 2,168.1 $ 2,380.2 $ 6,304.1 $ 6,046.4 Segment adjusted EBITDA: Broadband $ 204.2 $ 153.5 $ 427.2 $ 329.6 Home 28.5 59.7 75.8 121.8 OWN 53.6 75.3 218.4 312.6 VCN 55.6 81.3 131.6 209.8 Total segment adjusted EBITDA 341.9 369.8 853.0 973.8 Amortization of intangible assets (158.1 ) (163.9 ) (473.5 ) (387.3 ) Restructuring costs, net (40.3 ) (19.5 ) (83.6 ) (78.3 ) Equity-based compensation (34.0 ) (28.0 ) (90.0 ) (58.7 ) Asset impairments — — (206.7 ) — Transaction and integration costs (4.8 ) (2.2 ) (17.8 ) (189.8 ) Acquisition accounting adjustments (5.1 ) (108.7 ) (15.8 ) (272.9 ) Patent claims and litigation 1.4 (55.0 ) (11.4 ) (55.0 ) Executive severance (6.3 ) — (6.3 ) — Depreciation (38.9 ) (43.3 ) (118.7 ) (101.0 ) Consolidated operating income (loss) $ 55.8 $ (50.8 ) $ (170.8 ) $ (169.2 ) Depreciation expense: Broadband $ 14.8 $ 17.7 $ 44.8 $ 39.4 Home 8.3 10.7 26.3 20.1 OWN 4.1 4.3 12.7 13.2 VCN 11.7 10.6 34.9 28.3 Consolidated depreciation expense $ 38.9 $ 43.3 $ 118.7 $ 101.0 Additions to property, plant and equipment: Broadband $ 11.1 $ 10.1 $ 32.7 $ 28.2 Home 3.7 1.5 10.7 3.9 OWN 6.1 2.8 12.9 12.2 VCN 4.9 9.9 17.2 28.0 Consolidated additions to property, plant and equipment $ 25.8 $ 24.3 $ 73.5 $ 72.3 |
Summary of Sales by Geographic Region, Based on Destination of Product Shipments | Sales by geographic region, based on the destination of product shipments, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States $ 1,318.2 $ 1,432.7 $ 3,892.3 $ 3,572.5 Europe, Middle East and Africa 407.3 423.1 1,161.4 1,124.3 Asia Pacific 219.1 251.3 598.5 665.9 Caribbean and Latin America 149.9 187.6 432.3 476.5 Canada 73.6 85.5 219.6 207.2 Consolidated net sales $ 2,168.1 $ 2,380.2 $ 6,304.1 $ 6,046.4 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Company's Net Pretax Restructuring Charges | The Company’s net pretax restructuring charges, by segment, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Broadband $ 11.7 $ 5.4 $ 16.9 $ 31.1 Home 3.8 6.8 27.9 21.9 OWN 5.9 1.1 9.8 6.9 VCN 18.9 6.2 29.0 18.4 Total $ 40.3 $ 19.5 $ 83.6 $ 78.3 |
Restructuring Liabilities Included in Company's Condensed Consolidated Balance Sheets | Restructuring liabilities were included in the Company’s Condensed Consolidated Balance Sheets as follows: September 30, 2020 December 31, 2019 Accrued and other liabilities $ 36.0 $ 24.0 Other noncurrent liabilities 5.2 4.4 Total liability $ 41.2 $ 28.4 |
ARRIS Integration Restructuring Plan [Member] | |
Activity within Liability Established for Restructuring Actions, Included in Other Accrued Liabilities | Employee- Related Costs Other Associated Costs Total Balance at June 30, 2020 $ 25.5 $ 1.7 $ 27.2 Additional charge recorded 37.1 3.2 40.3 Cash paid (23.5 ) (1.3 ) (24.8 ) Non-cash items — (2.6 ) (2.6 ) Balance at September 30, 2020 $ 39.1 $ 1.0 $ 40.1 Balance at December 31, 2019 $ 23.1 $ 2.0 $ 25.1 Additional charge recorded 80.1 3.5 83.6 Cash paid (64.1 ) (1.6 ) (65.7 ) Non-cash items — (2.9 ) (2.9 ) Balance at September 30, 2020 $ 39.1 $ 1.0 $ 40.1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 Selling, general and administrative $ 18.6 $ 17.6 $ 49.3 $ 38.5 Cost of sales 5.5 3.7 14.5 7.7 Research and development 9.9 6.7 26.2 12.5 Total equity-based compensation expense $ 34.0 $ 28.0 $ 90.0 $ 58.7 |
Summary of Stock Option Activity | The following table summarizes the stock option activity (in millions, except per share data and years): Shares Weighted Average Option Exercise Price Per Share Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding at June 30, 2020 9.2 $ 17.57 Expired — $ — Forfeited (0.1 ) $ 18.60 Options outstanding at September 30, 2020 9.1 $ 17.54 6.3 $ 6.9 Options outstanding at December 31, 2019 9.6 $ 17.70 Exercised (0.1 ) $ 8.25 Expired (0.1 ) $ 30.29 Forfeited (0.3 ) $ 20.05 Options outstanding at September 30, 2020 9.1 $ 17.54 6.3 $ 6.9 Options vested at September 30, 2020 3.9 $ 15.74 3.2 $ 6.9 Options unvested at September 30, 2020 5.2 $ 18.88 8.6 $ — |
Summary of Exercise Price | The exercise prices of outstanding options at September 30, 2020 were in the following ranges (in millions, except per share data and years): Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life in Years Weighted Average Exercise Price Per Share Shares Weighted Average Exercise Price Per Share $2.96 to $5.74 2.1 0.3 $ 5.74 2.1 $ 5.74 $5.75 to $22.99 5.7 8.6 $ 18.33 0.6 $ 17.60 $23.00 to $42.32 1.3 6.0 $ 33.35 1.2 $ 32.84 $2.96 to $42.32 9.1 6.3 $ 17.54 3.9 $ 15.74 |
Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option | There were no stock option awards granted during the three or nine months ended September 30, 2020. The following table presents the weighted average assumptions used to estimate the fair value of stock option awards granted during the three and nine months ended September 30, 2019. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Expected option term (in years) 6.4 6.3 Risk-free interest rate 1.6 % 2.2 % Expected volatility 40.0 % 40.0 % Weighted average exercise price $ 12.20 $ 18.47 Weighted average fair value at grant date $ 5.21 $ 8.00 |
Summary of RSU Activity | The following table summarizes the RSU activity (in millions, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Non-vested share units at June 30, 2020 15.0 $ 14.28 Granted — $ — Vested and shares issued (1.4 ) $ 17.29 Forfeited (0.6 ) $ 14.27 Non-vested share units at September 30, 2020 13.0 $ 13.94 Non-vested share units at December 31, 2019 7.7 $ 22.30 Granted 9.6 $ 10.57 Vested and shares issued (3.2 ) $ 23.12 Forfeited (1.1 ) $ 16.26 Non-vested share units at September 30, 2020 13.0 $ 13.94 |
Summary of PSU Activity | The following table summarizes the PSU activity (in millions, except per share data): Performance Share Units Weighted Average Grant Date Fair Value Per Share Non-vested share units at June 30, 2020 2.7 $ 7.73 Granted — $ — Vested and shares issued (0.1 ) $ 6.67 Forfeited (0.2 ) $ 10.00 Non-vested share units at September 30, 2020 2.4 $ 7.66 Non-vested share units at December 31, 2019 2.7 $ 12.47 Granted 0.2 $ 10.32 Vested and shares issued (0.2 ) $ 17.63 Forfeited (0.3 ) $ 9.26 Non-vested share units at September 30, 2020 2.4 $ 7.66 |
Background and Basis of Prese_4
Background and Basis of Presentation - Additional Information (Detail) shares in Millions | Apr. 04, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($)Customershares | Sep. 30, 2019USD ($)Customershares | Sep. 30, 2020USD ($)Customershares | Sep. 30, 2019USD ($)Customershares |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Related party transactions | $ 0 | $ 0 | ||||
Product warranty term | These product warranties extend over various periods, depending upon the product subject to the warranty and the terms of the individual agreements | |||||
Loss contingency liability amount | 59,400,000 | $ 59,400,000 | ||||
Payments to settle intellectual property assertions | 66,200,000 | |||||
Intangible asset impairment charges, excluding goodwill | 0 | $ 0 | 0 | $ 0 | ||
Other long-Lived assets Impairments | $ 0 | 0 | 0 | 0 | ||
Impairment of Goodwill | $ 0 | $ 206,700,000 | $ 0 | |||
Effective income tax rate | (8.70%) | 24.80% | 5.90% | 15.10% | ||
Income tax expense (benefit) | $ 9,300,000 | $ (51,700,000) | $ (37,200,000) | $ (87,600,000) | ||
Net loss for the period | 107,000,000 | 208,200,000 | 634,500,000 | 580,400,000 | ||
Tax expense related to a foreign tax rate change | 19,200,000 | $ 19,200,000 | ||||
Statutory tax rate | 21.00% | |||||
Tax expense related to goodwill impairment charges | $ 206,700,000 | |||||
Tax expense related to state valuation allowance | 22,700,000 | |||||
Impact of recent accounting pronouncements | 1,200,000 | 1,100,000 | 9,000,000 | 1,500,000 | ||
Pre-tax net loss for the period | $ (107,000,000) | $ (208,200,000) | $ (634,500,000) | $ (580,400,000) | ||
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 | 18.9 | 17.4 | 17.4 | 10.8 | ||
Dilutive effect of equity-based awards | shares | 4.7 | 1.4 | 4.5 | 2.3 | ||
Stock Compensation Plan [Member] | Convertible Preferred Stock [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Dilutive effect of equity-based awards | shares | 37.4 | 36.4 | 36.9 | 23.8 | ||
Scenario Forecast [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Agreement amount payable | $ 39,800,000 | |||||
Home and VCN [Member] | Cost of Sales [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Loss contingency portion recorded | $ (9,900,000) | $ 2,800,000 | ||||
Carlyle [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Percentage of convertible preferred stock owned | 100.00% | 100.00% | ||||
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] | Sales Revenue, Net [Member] | Other Customers [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 | 0 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Direct customer accounted for 10% or more of the Company's accounts receivable and total net sales | Customer | 0 | |||||
Customer Concentration Risk [Member] | Maximum [Member] | Sales Revenue, Net [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Concentration risk percentage | 10.00% | 10.00% | ||||
Customer Concentration Risk [Member] | Maximum [Member] | Sales Revenue, Net [Member] | Comcast Corporation [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Concentration risk percentage | 11.00% | 11.00% | ||||
Customer Concentration Risk [Member] | Maximum [Member] | Sales Revenue, Net [Member] | Other Customers [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Concentration risk percentage | 10.00% | 10.00% | ||||
Customer Concentration Risk [Member] | Maximum [Member] | Accounts Receivable [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Concentration risk percentage | 10.00% | |||||
ARRIS [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Total purchase price | $ 7,700,000,000 | |||||
Loss contingency liability amount | $ 48,500,000 | $ 48,500,000 |
Background and Basis of Prese_5
Background and Basis of Presentation - Summary of Activity in Product Warranty Accrual, Included in Accrued and Other Liabilities and Other Noncurrent Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Product Warranty Liability [Line Items] | ||||
Product warranty accrual, beginning of period | $ 55.9 | $ 66.6 | $ 61 | $ 15.6 |
Provision for warranty claims | 10.3 | 6.5 | 20.1 | 12.5 |
Warranty claims paid | (8.4) | (9.3) | (22.8) | (21.7) |
Foreign exchange | 0.2 | (0.3) | ||
Product warranty accrual, end of period | $ 58 | $ 63.8 | $ 58 | 63.8 |
ARRIS [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Obligation assumed under ARRIS acquisition | $ 57.4 |
Background and Basis of Prese_6
Background and Basis of Presentation - Summary of EPS, Weighted Average Common Shares and Potential Common Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net loss | $ (116.3) | $ (156.5) | $ (597.3) | $ (492.8) |
Dividends on Series A convertible preferred stock | (14.1) | (13.8) | (41.8) | (26.9) |
Deemed dividend on Series A convertible preferred stock | (3) | |||
Net loss attributable to common stockholders | $ (130.4) | $ (170.3) | $ (639.1) | $ (522.7) |
Denominator: | ||||
Weighted average common shares outstanding - basic | 196.9 | 194.1 | 195.9 | 193.5 |
Weighted average common shares outstanding - diluted | 196.9 | 194.1 | 195.9 | 193.5 |
Loss per share: | ||||
Basic | $ (0.66) | $ (0.88) | $ (3.26) | $ (2.70) |
Diluted | $ (0.66) | $ (0.88) | $ (3.26) | $ (2.70) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Apr. 04, 2019 | Mar. 31, 2020 |
Business Acquisition [Line Items] | ||
Increase in accrued liabilities | $ 13.1 | |
Increase in deferred tax asset | 3.2 | |
Adjustment of goodwill | 9.9 | |
Increase in deferred tax assets related to valuation allowances | 20.8 | |
Decrease in deferred tax labilities related to prior year income tax returns | 4.7 | |
Increase in income tax payable related to prior year income tax returns | 6.7 | |
Decrease in unrecognized tax benefits | 0.9 | |
Increase in goodwill related to prior year income tax returns | $ 1.1 | |
ARRIS [Member] | ||
Business Acquisition [Line Items] | ||
Total purchase price | $ 7,700 |
Goodwill - Goodwill by Reportab
Goodwill - Goodwill by Reportable Segment (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | $ 6,058,800,000 | ||||
Adjustments to preliminary purchase price | (9,800,000) | ||||
Foreign exchange and other | (1,100,000) | ||||
Goodwill, gross, Ending balance | 6,047,900,000 | ||||
Accumulated impairment charges | (793,800,000) | $ (587,100,000) | |||
Impairment charges | $ 0 | (206,700,000) | $ 0 | ||
Goodwill, net | 5,254,100,000 | 5,471,700,000 | |||
Broadband [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 3,355,100,000 | ||||
Adjustments to preliminary purchase price | (7,100,000) | ||||
Foreign exchange and other | 2,300,000 | ||||
Goodwill, gross, Ending balance | 3,350,300,000 | ||||
Accumulated impairment charges | (193,600,000) | (193,600,000) | |||
Goodwill, net | 3,156,700,000 | ||||
Home [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 402,100,000 | ||||
Adjustments to preliminary purchase price | (1,300,000) | ||||
Foreign exchange and other | (1,300,000) | ||||
Goodwill, gross, Ending balance | 399,500,000 | ||||
Accumulated impairment charges | (399,500,000) | (192,800,000) | |||
Impairment charges | $ (206,700,000) | (206,700,000) | |||
Goodwill, net | 0 | ||||
OWN [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 666,000,000 | ||||
Goodwill, gross, Ending balance | 666,000,000 | ||||
Accumulated impairment charges | (159,500,000) | (159,500,000) | |||
Goodwill, net | 506,500,000 | ||||
VCN [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, gross, Beginning balance | 1,635,600,000 | ||||
Adjustments to preliminary purchase price | (1,400,000) | ||||
Foreign exchange and other | (2,100,000) | ||||
Goodwill, gross, Ending balance | 1,632,100,000 | ||||
Accumulated impairment charges | (41,200,000) | $ (41,200,000) | |||
Goodwill, net | $ 1,590,900,000 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||||
Impairment of Goodwill | $ 0 | $ 206,700,000 | $ 0 | ||
Goodwill | 5,254,100,000 | $ 5,471,700,000 | |||
Home [Member] | |||||
Goodwill [Line Items] | |||||
Impairment of Goodwill | $ 206,700,000 | 206,700,000 | |||
Goodwill | $ 0 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Schedule of Net Sales by Reportable Segment Disaggregated Based on Contract Type (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | $ 2,168.1 | $ 2,380.2 | $ 6,304.1 | $ 6,046.4 |
Broadband [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 820.9 | 694.8 | 2,106.3 | 1,690.7 |
Home [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 563.6 | 826.4 | 1,789.1 | 1,715.4 |
OWN [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 271.8 | 334.4 | 949 | 1,183.4 |
VCN [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 511.8 | 524.6 | 1,459.7 | 1,456.9 |
Product Contracts [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 2,016.7 | 2,263.7 | 5,876 | 5,772.4 |
Product Contracts [Member] | Broadband [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 744.5 | 623 | 1,885 | 1,520.5 |
Product Contracts [Member] | Home [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 561.7 | 817.8 | 1,777.3 | 1,702.3 |
Product Contracts [Member] | OWN [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 265.7 | 328.4 | 931.8 | 1,165.8 |
Product Contracts [Member] | VCN [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 444.8 | 494.5 | 1,281.9 | 1,383.8 |
Other Contracts [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 151.4 | 116.5 | 428.1 | 274 |
Other Contracts [Member] | Broadband [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 76.4 | 71.8 | 221.3 | 170.2 |
Other Contracts [Member] | Home [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 1.9 | 8.6 | 11.8 | 13.1 |
Other Contracts [Member] | OWN [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | 6.1 | 6 | 17.2 | 17.6 |
Other Contracts [Member] | VCN [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Consolidated net sales | $ 67 | $ 30.1 | $ 177.8 | $ 73.1 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Notes And Loans Receivable Classified [Abstract] | ||||
Allowance for doubtful accounts, beginning of period | $ 43.4 | $ 25.6 | $ 35.4 | $ 17.4 |
Charged to costs and expenses | (1.5) | 6.8 | 6.9 | 13.8 |
Write-offs | (0.3) | (2.9) | (0.1) | |
Recoveries | 0.2 | 1.5 | 0.2 | |
Foreign exchange and other | 1.5 | 2.2 | 1.3 | |
Allowance for doubtful accounts, end of period | $ 43.1 | $ 32.6 | $ 43.1 | $ 32.6 |
Revenue From Contracts With C_5
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, 2020 | Dec. 31, 2019 |
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue | $ 99 | $ 82.6 |
Accounts Receivable, Less Allowance for Doubtful Accounts [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Unbilled accounts receivable | 34.3 | 28.6 |
Accrued and Other Liabilities and Other Noncurrent Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue | $ 144.5 | $ 122.2 |
Revenue From Contracts With C_6
Revenue From Contracts With Customers - Additional Information (Detail 1) $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Performance obligations | $ 99 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Performance obligations | $ 45.5 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Minimum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue From Contracts With C_7
Revenue From Contracts With Customers - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue, Performance Obligation Satisfied over Time, Method Used, Description | As of September 30, 2020, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied and that have a duration of one year or less was $99.0 million, with the remaining $45.5 million having a duration greater than one year. |
Revenue from Contract with Cust
Revenue from Contract with Customers - Summary of Changes in Deferred Revenue (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Contract With Customer Liability [Abstract] | ||
Balance at beginning of period | $ 122.2 | $ 7.6 |
Fair value of deferred revenue acquired in ARRIS acquisition | 90.1 | |
Deferral of revenue | 142.5 | 78.2 |
Recognition of unearned revenue | (120.2) | (61.1) |
Balance at end of period | $ 144.5 | $ 114.8 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee Lease Description [Line Items] | ||||
Finance lease, right-of-use asset | $ 0 | $ 0 | ||
Finance lease, liability | 0 | $ 0 | ||
Operating lease, option to extend | true | |||
Operating lease, option to extend, description | some of which may include options to extend the leases for up to 5 years | |||
Operating lease, option to terminate | true | |||
Operating lease, option to terminate, description | options to terminate the leases within 1 year | |||
Operating lease, option to terminate, term | 1 year | |||
Operating lease expense | 26.7 | $ 23 | $ 78.8 | $ 61.3 |
Cost for short-term, cancellable and variable leases | $ 7.9 | $ 9.2 | $ 23.3 | $ 18.6 |
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating leases remaining lease terms | 9 years | 9 years | ||
Operating lease, option to extend term | 5 years |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating cash paid to settle lease liabilities | $ 55.8 | $ 49.2 |
Right of use asset additions in exchange for lease liabilities | $ 17.1 | $ 21.3 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Fair Value of Assets (Liability), Right of use assets | $ 175.1 | $ 204.9 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherNoncurrentAssetsMember | us-gaap:OtherNoncurrentAssetsMember |
Fair Value of Assets (Liability), Total lease liabilities | $ 62.5 | $ 61.7 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | comm:AccruedAndOtherLiabilitiesCurrent | comm:AccruedAndOtherLiabilitiesCurrent |
Fair Value of Assets (Liability), Total lease liabilities | $ 129.9 | $ 160.4 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Fair Value of Assets (Liability), Total lease liabilities | $ 192.4 | $ 222.1 |
Weighted average remaining lease term (in years) | 3 years 10 months 24 days | |
Weighted average discount rate | 6.90% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Leases, Remainder of 2020 | $ 20.1 | |
Operating Leases, 2021 | 69.9 | |
Operating Leases, 2022 | 46.7 | |
Operating Leases, 2023 | 36.1 | |
Operating Leases, 2024 | 25.2 | |
Operating Leases, Thereafter | 24.6 | |
Operating Leases, Total minimum lease payments | 222.6 | |
Less: imputed interest | (30.2) | |
Operating Leases, Total | $ 192.4 | $ 222.1 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 279.9 | $ 240.1 |
Work in process | 148.7 | 121.6 |
Finished goods | 675.9 | 614.2 |
Inventories, net | $ 1,104.5 | $ 975.9 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Accrued and Other Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued and Other Liabilities [Abstract] | ||
Compensation and employee benefit liabilities | $ 268.4 | $ 187.3 |
Operating lease liabilities | 62.5 | 61.7 |
Accrued interest | 59.3 | 97.8 |
Deferred revenue | 99 | 82.6 |
Accrued royalties | 40.2 | 63.9 |
Product warranty accrual | 45 | 42.8 |
Restructuring reserve | 36 | 24 |
Income taxes payable | 15.4 | 15.8 |
Value-added taxes payable | 28.6 | 27.3 |
Contract manufacturing liability | 39.4 | 25.4 |
Patent claims and litigation | 47.1 | 70.1 |
Other | 137.4 | 163.3 |
Accrued and other liabilities | $ 878.3 | $ 862 |
Supplemental Financial Statem_5
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 836.3 | |||
Ending balance | $ 254.1 | $ 1,211.1 | 254.1 | $ 1,211.1 |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (227.7) | (140.4) | (162.7) | (140.5) |
Other comprehensive income (loss) | 63.7 | (76.6) | (1.3) | (78.2) |
Amounts reclassified from AOCL | 1.7 | |||
Ending balance | (164) | (217) | (164) | (217) |
Hedging Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (21.8) | (13.3) | (8.9) | (1.4) |
Other comprehensive income (loss) | (9) | 7.9 | (21.9) | (4) |
Ending balance | (30.8) | (5.4) | (30.8) | (5.4) |
Defined Benefit Plan Activity [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (25.9) | (17.4) | (25.4) | (17.3) |
Amounts reclassified from AOCL | (0.1) | (0.1) | (0.6) | (0.2) |
Ending balance | (26) | (17.5) | (26) | (17.5) |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (275.4) | (171.1) | (197) | (159.2) |
Ending balance | $ (220.8) | $ (239.9) | $ (220.8) | $ (239.9) |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Cash Flow Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 61.8 | $ 82.5 |
Interest | $ 451.8 | $ 353.3 |
Financing - Summary of Debt (De
Financing - Summary of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Total principal amount of debt | $ 9,768 | $ 9,992 | |
Less: Original issue discount, net of amortization | (25.9) | (29.2) | |
Less: Debt issuance costs, net of amortization | (120.8) | (130.4) | |
Less: Current portion | (32) | (32) | |
Total long-term debt | 9,589.3 | 9,800.4 | |
7.125% Senior Notes Due July 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 700 | $ 700 | |
5.00% Senior Notes Due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 750 | 750 | |
8.25% Senior Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 1,000 | 1,000 | |
6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 1,400 | 1,500 | |
5.50% Senior Notes Due June 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 650 | ||
5.00% Senior Notes Due June 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 150 | ||
6.00% Senior Secured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 1,500 | 1,500 | |
5.50% Senior Secured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | 1,250 | 1,250 | |
Senior Secured Term Loan Due April 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured notes | $ 3,168 | $ 3,192 |
Financing - Summary of Debt (Pa
Financing - Summary of Debt (Parenthetical) (Detail) | 9 Months Ended | ||
Sep. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | |
7.125% Senior Notes Due July 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2028-07 | ||
Interest rate | 7.125% | 7.125% | |
5.00% Senior Notes Due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2027-03 | ||
Interest rate | 5.00% | 5.00% | |
8.25% Senior Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2027-03 | ||
Interest rate | 8.25% | 8.25% | |
6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2025-06 | ||
Interest rate | 6.00% | 6.00% | |
5.50% Senior Notes Due June 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2024-06 | ||
Interest rate | 5.50% | 5.50% | |
5.00% Senior Notes Due June 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2021-06 | ||
Interest rate | 5.00% | 5.00% | |
6.00% Senior Secured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2026-03 | ||
Interest rate | 6.00% | 6.00% | |
5.50% Senior Secured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2024-03 | ||
Interest rate | 5.50% | 5.50% | 5.50% |
Senior Secured Term Loan Due April 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity month and year | 2026-04 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Aug. 31, 2020 | Jul. 31, 2020 | Feb. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | |||||||||
Debt issuance cost Write-Off | $ 1.3 | $ 1.3 | |||||||
Current portion of long term debt | 32 | 32 | $ 32 | ||||||
Total assets | 13,701 | 13,701 | 14,431.6 | ||||||
Total liabilities | 12,405.1 | 12,405.1 | $ 12,595.3 | ||||||
Net sales | $ 2,168.1 | $ 2,380.2 | $ 6,304.1 | $ 6,046.4 | |||||
Weighted average effective interest rate | 5.87% | 5.87% | 6.17% | ||||||
Non Guarantor Subsidiaries Concentration Risk [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total assets | $ 2,533 | $ 2,533 | $ 3,773 | ||||||
Total liabilities | 946 | 946 | $ 714 | ||||||
Net sales | $ 637 | $ 399 | $ 1,834 | $ 1,770 | |||||
Assets, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Concentration risk percentage | 19.00% | 26.00% | |||||||
Liabilities, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Concentration risk percentage | 8.00% | 6.00% | |||||||
Sales Revenue, Net [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Concentration risk percentage | 29.00% | 17.00% | 29.00% | 29.00% | |||||
2026 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of long term debt | $ 0 | $ 0 | |||||||
Senior Note 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Amount Redeemed | $ 100 | ||||||||
Interest rate | 6.00% | ||||||||
Debt instrument redemption charges | $ 3 | $ 3 | |||||||
7.125% Senior Notes Due July 2028 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 7.125% | 7.125% | 7.125% | ||||||
Senior notes | $ 700 | $ 700 | $ 700 | ||||||
Senior notes maturity date | Jul. 1, 2028 | ||||||||
Senior Notes Due 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Amount Redeemed | $ 100 | ||||||||
Interest rate | 5.00% | ||||||||
Debt issuance cost Write-Off | $ 4.7 | $ 5 | |||||||
5.50% Senior Secured Notes Due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.50% | 5.50% | 5.50% | 5.50% | |||||
Debt instrument redemption charges | $ 11.9 | $ 11.9 | |||||||
Senior Note Two Thousand Twenty Eight [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Amount Redeemed | 11.6 | $ 11.6 | |||||||
Senior Note Two Thousand Twenty Eight [Member] | Senior Notes [Member] | Redemption Upon Certain Change Of Control Events | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument redemption price percentage | 101.00% | ||||||||
Senior Note Two Thousand Twenty Eight [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption date, period end date | Jul. 1, 2023 | ||||||||
Senior Note Two Thousand Twenty Eight [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument redemption price percentage | 100.00% | ||||||||
Redemption date, period end date | Jul. 1, 2023 | ||||||||
Senior Note Two Thousand Twenty Eight [Member] | Senior Notes [Member] | Redemption Under Certain Circumstances | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument redemption price percentage | 107.125% | ||||||||
Redemption date, period end date | Jul. 1, 2023 | ||||||||
Percentage of principal amount of debt redeemed | 40.00% | ||||||||
Asset Based Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior secured revolving credit facility | 0 | $ 0 | $ 250 | ||||||
Repayments of senior debt | 250 | ||||||||
Line of credit facility, remaining borrowing capacity | 733.6 | 733.6 | |||||||
2026 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Scheduled amortization payments | 8 | 24 | |||||||
Current portion of long term debt | $ 32 | $ 32 |
Financing - Scheduled Maturitie
Financing - Scheduled Maturities of Long- Term Debt (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Long Term Debt By Maturity [Abstract] | |
Remainder of 2020 | $ 8 |
2021 | 32 |
2022 | 32 |
2023 | 32 |
2024 | 1,282 |
Thereafter | $ 8,382 |
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, 2020 | Dec. 31, 2019 |
Carrying Amount [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | $ 5.5 | $ 10.7 |
Carrying Amount [Member] | Other Accrued Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 9.4 | 5.9 |
Carrying Amount [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate swap contracts | 33.8 | 16.3 |
Fair Value [Member] | Prepaid Expenses and Other Current Assets [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 5.5 | 10.7 |
Fair Value [Member] | Other Accrued Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 9.4 | 5.9 |
Fair Value [Member] | Other Noncurrent Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate swap contracts | 33.8 | 16.3 |
7.125% Senior Notes Due 2028 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 700 | |
7.125% Senior Notes Due 2028 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 722.8 | |
5.00% Senior Notes Due 2027 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 750 | 750 |
5.00% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 750 | 750 |
5.00% Senior Notes Due 2027 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 720 | 696.4 |
8.25% Senior Notes Due 2027 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,040 | 1,052.5 |
6.00% Senior Notes Due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,400 | 1,500 |
6.00% Senior Notes Due 2025 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,400 | 1,500 |
6.00% Senior Notes Due 2025 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,415.5 | 1,501.7 |
5.50% Senior Notes Due 2024 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 650 | |
5.50% Senior Notes Due 2024 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 650 | |
5.50% Senior Notes Due 2024 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 656 | |
5.00% Senior Notes Due 2021 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 150 | |
5.00% Senior Notes Due 2021 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 150 | |
5.00% Senior Notes Due 2021 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 149.9 | |
6.00% Senior Secured Notes Due 2026 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured debt | 1,500 | 1,500 |
6.00% Senior Secured Notes Due 2026 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,560 | 1,595.6 |
5.50% Senior Secured Notes Due 2024 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured debt | 1,250 | 1,250 |
5.50% Senior Secured Notes Due 2024 [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,281.6 | 1,302.1 |
Senior Secured Term Loan Due 2026 (Member) | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured debt | 3,168 | 3,192 |
Senior Secured Term Loans Due 2026 (Member) | Fair Value [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured term loans | $ 3,092.8 | $ 3,219.9 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Pretax impairment charges | $ 2,600,000 | ||||
Pretax goodwill impairment charges | $ 0 | 206,700,000 | $ 0 | ||
Non-Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Pretax impairment charges | $ 2,600,000 | $ 2,600,000 | |||
Pretax goodwill impairment charges | $ 206,700,000 |
Segments and Geographic Infor_3
Segments and Geographic Information - Additional Information (Detail) - Segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 4 | |||
Sales Revenue, Net [Member] | Customers Located Outside of the U.S [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 39.20% | 39.80% | 38.30% | 40.90% |
Segments and Geographic Infor_4
Segments and Geographic Information - Summary of Financial Information by Reportable Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 13,701 | $ 14,431.6 | ||
Cash and cash equivalents | 582.8 | 598.2 | $ 609.1 | $ 458.2 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 12,880.1 | 13,730.3 | ||
Operating Segments | Broadband [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 6,494.5 | 6,681.1 | ||
Operating Segments | Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,763.3 | 2,178.7 | ||
Operating Segments | OWN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,237.2 | 1,394.1 | ||
Operating Segments | VCN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 3,385.1 | 3,476.4 | ||
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 582.8 | 598.2 | ||
Deferred income tax assets | $ 238.1 | $ 103.1 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,168.1 | $ 2,380.2 | $ 6,304.1 | $ 6,046.4 |
Total segment adjusted EBITDA | 341.9 | 369.8 | 853 | 973.8 |
Amortization of intangible assets | (158.1) | (163.9) | (473.5) | (387.3) |
Restructuring costs, net | (40.3) | (19.5) | (83.6) | (78.3) |
Equity-based compensation | (34) | (28) | (90) | (58.7) |
Asset impairments | (206.7) | |||
Transaction and integration costs | (4.8) | (2.2) | (17.8) | (189.8) |
Acquisition accounting adjustments | (5.1) | (108.7) | (15.8) | (272.9) |
Patent claims and litigation | 1.4 | (55) | (11.4) | (55) |
Executive severance | (6.3) | (6.3) | ||
Depreciation | (38.9) | (43.3) | (118.7) | (101) |
Consolidated operating income (loss) | 55.8 | (50.8) | (170.8) | (169.2) |
Additions to property, plant and equipment | 25.8 | 24.3 | 73.5 | 72.3 |
Broadband [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 820.9 | 694.8 | 2,106.3 | 1,690.7 |
Total segment adjusted EBITDA | 204.2 | 153.5 | 427.2 | 329.6 |
Restructuring costs, net | (11.7) | (5.4) | (16.9) | (31.1) |
Depreciation | (14.8) | (17.7) | (44.8) | (39.4) |
Additions to property, plant and equipment | 11.1 | 10.1 | 32.7 | 28.2 |
Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 563.6 | 826.4 | 1,789.1 | 1,715.4 |
Total segment adjusted EBITDA | 28.5 | 59.7 | 75.8 | 121.8 |
Depreciation | (8.3) | (10.7) | (26.3) | (20.1) |
Additions to property, plant and equipment | 3.7 | 1.5 | 10.7 | 3.9 |
OWN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 271.8 | 334.4 | 949 | 1,183.4 |
Total segment adjusted EBITDA | 53.6 | 75.3 | 218.4 | 312.6 |
Restructuring costs, net | (5.9) | (1.1) | (9.8) | (6.9) |
Depreciation | (4.1) | (4.3) | (12.7) | (13.2) |
Additions to property, plant and equipment | 6.1 | 2.8 | 12.9 | 12.2 |
VCN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 511.8 | 524.6 | 1,459.7 | 1,456.9 |
Total segment adjusted EBITDA | 55.6 | 81.3 | 131.6 | 209.8 |
Restructuring costs, net | (18.9) | (6.2) | (29) | (18.4) |
Depreciation | (11.7) | (10.6) | (34.9) | (28.3) |
Additions to property, plant and equipment | $ 4.9 | $ 9.9 | $ 17.2 | $ 28 |
Segments and Geographic Infor_6
Segments and Geographic Information - Summary of Sales by Geographic Region, Based on Destination of Product Shipments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 2,168.1 | $ 2,380.2 | $ 6,304.1 | $ 6,046.4 |
United States [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 1,318.2 | 1,432.7 | 3,892.3 | 3,572.5 |
Europe, Middle East and Africa [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 407.3 | 423.1 | 1,161.4 | 1,124.3 |
Asia Pacific [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 219.1 | 251.3 | 598.5 | 665.9 |
Caribbean and Latin America [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | 149.9 | 187.6 | 432.3 | 476.5 |
Canada [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 73.6 | $ 85.5 | $ 219.6 | $ 207.2 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Company's Net Pretax Restructuring Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | $ 40.3 | $ 19.5 | $ 83.6 | $ 78.3 |
Broadband [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 11.7 | 5.4 | 16.9 | 31.1 |
Home [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 3.8 | 6.8 | 27.9 | 21.9 |
OWN [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | 5.9 | 1.1 | 9.8 | 6.9 |
VCN [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, net | $ 18.9 | $ 6.2 | $ 29 | $ 18.4 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Liabilities Included in Company's Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 36 | $ 24 |
Ending balance | 41.2 | 28.4 |
Accrued and Other Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | 36 | 24 |
Other Noncurrent Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, non-current | $ 5.2 | $ 4.4 |
Restructuring Costs - Activity
Restructuring Costs - Activity within Liability Established for Restructuring Actions (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | $ 28.4 | |||
Additional charge recorded | $ 40.3 | $ 19.5 | 83.6 | $ 78.3 |
Ending balance | 41.2 | 41.2 | ||
ARRIS Integration Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 27.2 | 25.1 | ||
Additional charge recorded | 40.3 | 83.6 | ||
Cash paid | (24.8) | (65.7) | ||
Non-cash items | (2.6) | (2.9) | ||
Ending balance | 40.1 | 40.1 | ||
ARRIS Integration Restructuring Plan [Member] | Employee-Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 25.5 | 23.1 | ||
Additional charge recorded | 37.1 | 80.1 | ||
Cash paid | (23.5) | (64.1) | ||
Ending balance | 39.1 | 39.1 | ||
ARRIS Integration Restructuring Plan [Member] | Other Associated Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | 1.7 | 2 | ||
Additional charge recorded | 3.2 | 3.5 | ||
Cash paid | (1.3) | (1.6) | ||
Non-cash items | (2.6) | (2.9) | ||
Ending balance | $ 1 | $ 1 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment expenses | $ 2,600,000 | |
Operating lease right-of-use Asset | 175,100,000 | $ 204,900,000 |
Estimated fair market value of remaining right of use assets after impairment | 2,500,000 | |
ARRIS Integration Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Recognized restructuring charges | 169,700,000 | |
Operating lease right-of-use Asset | 5,100,000 | |
ARRIS Integration Restructuring Plan [Member] | Remainder of 2020 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cash payments | 16,900,000 | |
ARRIS Integration Restructuring Plan [Member] | 2021 to 2022 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cash payments | 23,200,000 | |
BNS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Recognized restructuring charges | 153,000,000 | |
Additional recognized restructuring charges | 0 | |
Accrued restructuring charges | 1,100,000 | |
Payments made for restructuring | 2,200,000 | |
BNS [Member] | Remainder of 2020 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cash payments | 400,000 | |
BNS [Member] | 2021 to 2022 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cash payments | $ 700,000 |
Series A Convertible Preferre_2
Series A Convertible Preferred Stock - Additional Information (Detail) - Carlyle [Member] - USD ($) $ / shares in Units, $ in Millions | Apr. 04, 2019 | Sep. 30, 2020 | Sep. 30, 2020 |
Class Of Stock [Line Items] | |||
Agreement date | Nov. 8, 2018 | ||
Series A Convertible Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Convertible preferred stock, share issued | 1,000,000 | ||
Total purchase price | $ 1,000 | ||
Total purchase price per share | $ 1,000 | ||
Convertible preferred stock, conversion price per share | $ 27.50 | ||
Initial conversion rate of common stock per share of the convertible preferred stock | 36.3636 | ||
Series A Convertible Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Convertible preferred stock, dividend payment terms | Holders of the Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per year, payable quarterly in arrears. | ||
Convertible preferred stock, dividend rate percentage | 5.50% | ||
Dividends declared payable in kind | $ 14.1 | $ 41.8 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($)shares | |
Stockholders Equity [Line Items] | ||
Unrecognized compensation costs related to unvested stock options, restricted stock units (RSUs) and performance share units (PSUs) | $ 138,300,000 | $ 138,300,000 |
Recognition period of unrecognized compensation expense | 1 year 4 months 24 days | |
Capitalized equity-based compensation costs | $ 0 | |
Projected dividend yield | 0.00% | |
Stock Options [Member] | ||
Stockholders Equity [Line Items] | ||
Contractual term | 10 years | |
Stock Options [Member] | Minimum [Member] | ||
Stockholders Equity [Line Items] | ||
Vesting period, year | 3 years | |
Stock Options [Member] | Maximum [Member] | ||
Stockholders Equity [Line Items] | ||
Vesting period, year | 5 years | |
Non Qualified Stock Option [Member] | ||
Stockholders Equity [Line Items] | ||
Stock option awards granted | shares | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||
Stockholders Equity [Line Items] | ||
Vesting period, year | 1 year | |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||
Stockholders Equity [Line Items] | ||
Vesting period, year | 3 years | |
Performance Shares [Member] | ||
Stockholders Equity [Line Items] | ||
Vesting period, year | 3 years | |
Performance Shares [Member] | Minimum [Member] | ||
Stockholders Equity [Line Items] | ||
Number of shares issued on performance | 0.00% | |
Performance Shares [Member] | Maximum [Member] | ||
Stockholders Equity [Line Items] | ||
Number of shares issued on performance | 200.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Equity-Based Compensation Expense Included in the Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 34 | $ 28 | $ 90 | $ 58.7 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 18.6 | 17.6 | 49.3 | 38.5 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 5.5 | 3.7 | 14.5 | 7.7 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 9.9 | $ 6.7 | $ 26.2 | $ 12.5 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Detail) - Non Qualified Stock Option [Member] $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Options Beginning Balance | shares | 9.2 | 9.6 |
Shares, Exercised | shares | (0.1) | |
Shares, Expired | shares | (0.1) | |
Shares, Forfeited | shares | (0.1) | (0.3) |
Shares, Options Ending Balance | shares | 9.1 | 9.1 |
Shares, Options vested Ending Balance | shares | 3.9 | 3.9 |
Shares, Options unvested Ending Balance | shares | 5.2 | 5.2 |
Weighted Average Option Exercise Price Per Share, Options Beginning Balance | $ / shares | $ 17.57 | $ 17.70 |
Weighted Average Option Exercise Price Per Share, Exercised | $ / shares | 8.25 | |
Weighted Average Option Exercise Price Per Share, Expired | $ / shares | 30.29 | |
Weighted Average Option Exercise Price Per Share, Forfeited | $ / shares | 18.60 | 20.05 |
Weighted Average Option Exercise Price Per Share, Options Ending Balance | $ / shares | 17.54 | 17.54 |
Weighted Average Option Exercise Price Per Share, Options vested Ending Balance | $ / shares | 15.74 | 15.74 |
Weighted Average Option Exercise Price Per Share, Options unvested Ending Balance | $ / shares | $ 18.88 | $ 18.88 |
Weighted Average Remaining Contractual Term in Years, Options outstanding | 6 years 3 months 18 days | 6 years 3 months 18 days |
Weighted Average Remaining Contractual Term in Years, Options vested | 3 years 2 months 12 days | |
Weighted Average Remaining Contractual Term in Years, Options unvested | 8 years 7 months 6 days | |
Aggregate Intrinsic Value, Options outstanding as of September 30, 2020 | $ | $ 6.9 | $ 6.9 |
Aggregate Intrinsic Value, Options vested as of September 30, 2020 | $ | $ 6.9 | $ 6.9 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Exercise Price (Detail) shares in Millions | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
$2.96 to $5.74 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | $ 2.96 |
Range of Exercise Prices Maximum | $ 5.74 |
Options Outstanding Shares | shares | 2.1 |
Weighted Average Remaining Contractual Life | 3 months 18 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 5.74 |
Options Exercisable Shares | shares | 2.1 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 5.74 |
$5.75 to $22.99 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 5.75 |
Range of Exercise Prices Maximum | $ 22.99 |
Options Outstanding Shares | shares | 5.7 |
Weighted Average Remaining Contractual Life | 8 years 7 months 6 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 18.33 |
Options Exercisable Shares | shares | 0.6 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 17.60 |
$23.00 to $42.32 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 23 |
Range of Exercise Prices Maximum | $ 42.32 |
Options Outstanding Shares | shares | 1.3 |
Weighted Average Remaining Contractual Life | 6 years |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 33.35 |
Options Exercisable Shares | shares | 1.2 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 32.84 |
$2.96 to $42.32 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 2.96 |
Range of Exercise Prices Maximum | $ 42.32 |
Options Outstanding Shares | shares | 9.1 |
Weighted Average Remaining Contractual Life | 6 years 3 months 18 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 17.54 |
Options Exercisable Shares | shares | 3.9 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 15.74 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) - Stock Options [Member] - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected option term (in years) | 6 years 4 months 24 days | 6 years 3 months 18 days |
Risk-free interest rate | 1.60% | 2.20% |
Expected volatility | 40.00% | 40.00% |
Weighted average exercise price | $ 12.20 | $ 18.47 |
Weighted average fair value at grant date | $ 5.21 | $ 8 |
Stockholders' Equity - Summar_5
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share units, Beginning balance | 15 | 7.7 |
Shares, Granted | 9,600,000 | |
Shares, Vested and shares issued | (1,400,000) | (3,200,000) |
Shares, Forfeited | (600,000) | (1,100,000) |
Non-vested share units, Ending balance | 13 | 13 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ 14.28 | $ 22.30 |
Weighted Average Grant Date Fair Value Per Share, Granted | 10.57 | |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | 17.29 | 23.12 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | 14.27 | 16.26 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ 13.94 | $ 13.94 |
Stockholders' Equity - Summar_6
Stockholders' Equity - Summary of PSU Activity (Detail) - Performance Shares [Member] - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested share units, Beginning balance | 2.7 | 2.7 |
Shares, Granted | 0.2 | |
Shares, Vested and shares issued | (0.1) | (0.2) |
Shares, Forfeited | (0.2) | (0.3) |
Non-vested share units, Ending balance | 2.4 | 2.4 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ 7.73 | $ 12.47 |
Weighted Average Grant Date Fair Value Per Share, Granted | 10.32 | |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | 6.67 | 17.63 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | 10 | 9.26 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ 7.66 | $ 7.66 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - 6.00% Senior Notes Due June 2025 [Member] - USD ($) $ in Millions | Oct. 13, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Senior notes | $ 1,400 | $ 1,500 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Repayments of senior debt | $ 100 | ||
Redemption date, period end date | Oct. 23, 2020 | ||
Senior notes | $ 1,300 |