ARRIS International 8-K ARRIS Announces Preliminary and Unaudited First Quarter 2018 Results

Exhibit 99.1

ARRIS Announces Preliminary and Unaudited First Quarter 2018 Results

SUWANEE, Ga., May 1, 2018 – ARRIS International plc (NASDAQ:ARRS)today announced preliminary and unaudited financial results for the first quarter 2018.

First Quarter 2018 Financial Highlights

• Revenues were $1.578 billion

• GAAP net loss was ($0.07) per diluted share

• Adjusted net income (anon-GAAP measure) was $0.73 per diluted share

• End-of-quarter cash resources were $543 million

• Cash from operating activities was $96 million

• Order backlog was $1.3 billion

• Book-to-bill ratio was 1.11

• Repurchased ~986,000 shares for $25 million

“We delivered strong profitability to start the year, led by a great quarter of E6000 DOCSIS^® 3.1 capacity sales and Enterprise Networks’ results,” said Bruce McClelland, ARRIS CEO. “This marked the first full quarter for Enterprise Networks with better than expected results from both wired and wireless product lines. Performance from Enterprise Networks and Network & Cloud more than offset a lower quarter in CPE sales. Overall our results demonstrated good progress toward our goals of driving profitable growth by diversifying into higher-margin products, expanding internationally and broadening the capabilities of ARRIS to deliver innovative services to address the explosive demand for bandwidth capacity.

“With respect to the second quarter 2018, we expect revenues will be in the range of $1.760 billion to $1.810 billion, GAAP net income per diluted share in the range of $0.24 to $0.29, and adjusted net income per diluted share in the range of $0.72 to $0.77. The strong start to the year creates good momentum to achieve our full year targets.”

On December 1, 2017, the Company completed the acquisition of Ruckus Networks, and, as a result, comparisons to prior year periods are materially affected.

Revenues in the first quarter 2018 of $1.578 billion were up $95 million, or 6%, as compared to first quarter 2017 revenues of $1.483 billion. First quarter revenues were down $161 million, or 9%, as compared to fourth quarter 2017 revenues of $1.739 billion.

GAAP net lossin the first quarter 2018 was ($0.07) per diluted share. First quarter 2017 GAAP net loss was ($0.21) per diluted share, and fourth quarter 2017 GAAP net income was $0.07 per diluted share.

Adjusted net income (anon-GAAP measure) in the first quarter 2018 was $0.73 per diluted share, as compared to $0.40 per diluted share for the first quarter 2017, and the fourth quarter 2017 adjusted net income of $0.88 per diluted share.

A reconciliation of adjusted net income to GAAP net loss is attached to this release and can also be found on the Company’s website (www.arris.com).

Cash resources of the Company at the end of the first quarter, 2018 were $543 million of cash resources as compared to $511 million at the end of the fourth quarter 2017. The Company generated $96 million of cash from operating activities during the first quarter 2018, as compared to generating $250 million during the first quarter of 2017.

The Company repurchased approximately 986,000 ordinary shares for $25 million during the first quarter. Since the end of the first quarter 2018, the Company has repurchased approximately 895,000 additional ordinary shares for $24 million. As of May 1, 2018, the Company has $476 million remaining in available share repurchase authorization.

Order backlog at the end of the first quarter 2018 was $1.293 billion, as compared to $1.304 billion and $1.121 billion at the end of the first quarter 2017 and the fourth quarter 2017, respectively. The Company’sbook-to-bill ratio in the first quarter 2018 was 1.11, as compared to the first quarter 2017 of 1.13 and the fourth quarter 2017 of 1.02.

ARRIS management will conduct a conference call at 5:00 pm EDT, today, Tuesday, May 1, 2018, to discuss these results in detail. You may participate in this conference call by dialing888-655-5028 or503-343-6025 for international calls prior to the start of the call. Please note that ARRIS will not accept any calls related to this earnings release until after the conclusion of the conference call. A replay of the conference call can be accessed approximately two hours after the call through May 8, 2018, by dialing855-859-2056 or404-537-3406 for international calls and using passcode 3398479. A replay also will be made available for a period of 12 months following the conference call on ARRIS’s website site at (www.arris.com).

Forward-Looking Statements

Statements made in this press release, including those related to revenues and net income for the second quarter and full year 2018, growth expectations, cost initiatives, the general market outlook and industry trends are forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among other things:

• projected results for the second quarter 2018, as well as the general outlook for 2018, are based on preliminary estimates, assumptions and projections that management believes to be reasonable at this time, but are beyond management’s control;

• volatility in component pricing and supply could impact revenues and gross margins more than currently anticipated;

• the anticipated benefits from the Ruckus Networks acquisition may not be realized;

• proposed tariffs on the import of certain products into the U.S., and any retaliatory tariffs imposed on U.S. products, could have a material adverse result on our financials results;

• volatility in currency fluctuation may adversely impact our international customers’ ability or willingness to purchase products and the pricing of products;

• impacts of the U.K. invoking Article 50 of the Lisbon Treaty to leave the European Union, could have an adverse impact on results of operations;

• regulatory changes, including those related to recently completed changes to the U.S. income tax code, could have an adverse impact on operations and results of operations;

• the impact of litigation and similar regulatory proceedings that we are involved in or may become involved in, including the costs of such litigation; and

• the Company’s customers operate in a capital intensive consumer-based industry, and volatility in the capital markets or changes in customer spending may adversely impact their ability or willingness to purchase the products that the Company offers.

These factors are not intended to be anall-encompassing list of risks and uncertainties that may affect the Company’s business and results from operations. Additional information regarding these and other factors can be found in the Company’s reports filed with the Securities and Exchange Commission, including its Form10-K for the year ended December 31, 2017. In providing forward-looking statements, the Company expressly disclaims any obligation to update these statements publicly or otherwise, whether as a result of new information, future events or otherwise, except as required by law.

About ARRIS

ARRIS International plc (NASDAQ: ARRS) is powering a smart, connected world. The company’s leading hardware, software and services transform the way that people and businesses stay informed, entertained and connected. For more information, visitwww.arris.com.

For the latest ARRIS news:

• Check out our blog:ARRIS EVERYWHERE

• Follow us on Twitter:@ARRIS

Contact:

Bob Puccini

Investor Relations

+1.720.895.7787

ARRIS and the ARRIS Logo are trademarks or registered trademarks of ARRIS Enterprises, LLC. All other trademarks are the property of their respective owners.^© 2018 ARRIS Enterprises, Inc. All rights reserved.

ARRIS INTERNATIONAL PLC

PRELIMINARY CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	506,240		$	487,573		$	1,379,827		$	1,346,028		$	1,126,248
Short-term investments, at fair value		36,804			23,874			33,309			38,759			90,673
Total cash, cash equivalents and short term investments		543,044			511,447			1,413,136			1,384,787			1,216,921
Accounts receivable, net		1,008,603			1,218,089			1,056,225			991,539			1,018,108
Other receivables		169,681			157,845			145,658			132,742			109,117
Unbilled receivables		26,005			—			—			—			—
Inventories, net		849,069			825,211			775,142			657,881			556,264
Prepaid income taxes		26,409			28,351			41,780			16,354			21,845
Prepaids		36,308			26,644			27,954			32,149			27,898
Other current assets		172,993			145,953			109,568			119,405			132,339
Total current assets		2,832,112			2,913,540			3,569,462			3,334,856			3,082,491
Property, plant and equipment, net		309,457			372,467			347,506			355,033			354,049
Goodwill		2,336,820			2,278,512			2,016,580			2,014,550			2,018,012
Intangible assets, net		1,583,299			1,771,362			1,406,592			1,491,103			1,586,187
Investments		69,858			71,082			73,199			61,047			65,035
Deferred income taxes		131,417			115,436			193,703			199,102			190,037
Other assets		103,525			101,858			57,246			54,844			58,920
	$	7,366,488		$	7,624,257		$	7,664,287		$	7,510,535		$	7,354,732
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,010,812		$	1,206,656		$	1,266,214		$	1,201,883		$	1,020,234
Accrued compensation, benefits and related taxes		113,029			155,966			102,222			81,356			73,221
Accrued warranty		42,434			44,507			45,036			44,812			46,330
Deferred revenue		143,740			115,224			118,598			130,454			145,197
Current portion of LT debt & financing lease obligations		83,633			83,559			89,156			89,336			82,767
Income taxes payable		4,937			6,244			4,420			9,487			20,277
Other accrued liabilities		316,206			321,113			327,099			303,013			300,861
Total current liabilities		1,714,791			1,933,269			1,952,746			1,860,341			1,688,888
Long-term debt & financing lease obligations, net of current portion		2,095,320			2,116,244			2,112,494			2,134,506			2,159,300
Accrued pension		43,443			42,637			54,867			55,533			54,808
Noncurrent income taxes		159,148			144,665			115,433			114,187			120,493
Deferred income taxes		68,825			68,888			83,058			83,515			89,261
Other noncurrent liabilities		127,587			134,520			118,420			120,381			112,977
Total liabilities		4,209,114			4,440,223			4,437,018			4,368,463			4,225,727
Stockholders’ equity:
Ordinary shares		2,769			2,768			2,788			2,786			2,802
Capital in excess of par value		3,392,415			3,387,128			3,367,939			3,356,184			3,322,803
Accumulated other comprehensive loss		12,545			4,552			8,838			2,211			10,628
Accumulated deficit		(266,264	)		(225,881	)		(188,375	)		(256,705	)		(243,207	)
Total ARRIS International plc stockholders’ equity		3,141,465			3,168,567			3,191,190			3,104,475			3,093,026
Stockholders’ equity attributable to noncontrolling interest		15,909			15,467			36,079			37,598			35,979
Total stockholders’ equity		3,157,374			3,184,034			3,227,269			3,142,073			3,129,005
	$	7,366,488		$	7,624,257		$	7,664,287		$	7,510,535		$	7,354,732

ARRIS INTERNATIONAL PLC

PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	For the Three Months Ended March 31,
	2018			2017
Net sales	$	1,577,710		$	1,483,105
Cost of sales		1,102,027			1,145,848
Gross margin		475,683			337,257
Operating expenses:
Selling, general, and administrative expenses		161,203			104,638
Research and development expenses		169,797			132,962
Amortization of intangible assets		114,708			93,646
Impairment of goodwill		3,400			—
Integration, acquisition, restructuring and other costs		13,655			10,095
		462,764			341,341
Operating income (loss)		12,919			(4,084	)
Other expense (income):
Interest expense		22,525			19,683
Loss on investments		527			4,530
Loss on foreign currency		4,833			4,739
Interest income		(1,532	)		(1,922	)
Other (income) expense, net		109			(85	)
Loss before income taxes		(13,543	)		(31,030	)
Income tax expense		3,489			10,001
Consolidated net loss		(17,032	)		(41,031	)
Net loss attributable to noncontrolling interests		(3,432	)		(1,933	)
Net loss attributable to ARRIS International plc	($	13,600	)	($	39,098	)
Net loss per ordinary share(1):
Basic	$	(0.07	)	$	(0.21	)
Diluted	$	(0.07	)	$	(0.21	)
Weighted average ordinary shares:
Basic		184,805			189,796
Diluted		184,805			189,796

(1) Calculated based on net income (loss) attributable to shareowners of ARRIS International plc    

ARRIS INTERNATIONAL PLC

PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	For the Three Months
	Ended March 31,
	2018			2017
Operating Activities:
Consolidated net loss	$	(17,032	)	$	(41,031	)
Depreciation		22,874			21,313
Amortization of acquired intangible assets		116,595			95,306
Amortization of deferred finance fees and debt discount		1,215			1,903
Impairment of goodwill		3,400			—
Deferred income taxes		(13,327	)		(15,667	)
Foreign currency remeasurement of deferred income taxes		3,697			2,112
Stock compensation expense		19,256			19,415
Provision fornon-cash warrants		—			2,423
Provision (recovery) for doubtful accounts		(292	)		(179	)
Loss on disposal of plant, property and equipment and other		156			292
Loss on investments and others		662			4,530
Changes in operating assets & liabilities, net of effects of acquisitions and disposals:
Accounts receivable		209,405			343,960
Other receivables		(11,836	)		(35,924	)
Unbilled receivables		(25,829	)		—
Inventories		(24,397	)		(3,152	)
Accounts payable and accrued liabilities		(228,151	)		(144,640	)
Prepaids and other, net		39,517			(601	)
Net cash provided by operating activities		95,913			250,060
Investing Activities:
Purchases of investments		(26,500	)		(55,879	)
Sales of investments		11,000			91,885
Purchases of property, plant & equipment, net		(15,196	)		(21,867	)
Deposit proceeds for sale of property, plant and equipment		10,000			—
Other, net		171			826
Net cash (used in) provided by investing activities		(20,525	)		14,965
Financing Activities:
Payment of financing lease obligation		(190	)		(204	)
Payment of debt obligations		(21,875	)		(22,375	)
Repurchase of shares		(25,000	)		(83,110	)
Repurchase of shares to satisfy employee minimum tax withholdings		(13,976	)		(13,754	)
Proceeds from issuance of shares, net		22			23
Contribution from noncontrolling interest		1,207			—
Net cash used in financing activities		(59,812	)		(119,420	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		3,791			597
Net (decrease) increase in cash, cash equivalents and restricted cash		19,367			146,202
Cash, cash equivalents and restricted cash at beginning of period		489,116			981,692
Cash, cash equivalents and restricted cash at end of period	$	508,483		$	1,127,894
Reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets
Cash and cash equivalents	$	506,240		$	1,126,248
Restricted cash included in other current assets		1,491			162
Restricted cash included in other assets		752			1,484
Total	$	508,483		$	1,127,894

ARRIS INTERNATIONAL PLC

PRELIMINARY ADJUSTED SALES & NET INCOME RECONCILIATION

(in thousands, except per share data) (unaudited)

	Q1 2017						Q4 2017						Q1 2018
	Amount			Per Diluted Share			Amount			Per Diluted Share			Amount			Per Diluted Share
Sales	$	1,483,105					$	1,738,593					$	1,577,710
Highlighted items:
Adjustment to revenue related to warrants		2,423						(8,145	)					—
Acquisition accounting impacts of deferred revenue		—						1,120						5,694
Adjusted sales	$	1,485,528					$	1,731,568					$	1,583,404
Net income (loss) attributable to ARRIS International plc	$	(39,098	)	$	(0.21	)	$	12,469		$	0.07		$	(13,600	)	$	(0.07	)
Highlighted Items:
Impacting gross margin:
Stock compensation expense		3,252			0.02			3,303			0.02			3,253			0.02
Adjustment to revenue related to warrants		2,423			0.01			(8,145	)		(0.04	)		—			—
Acquisition accounting impacts of deferred revenue		—			—			1,120			0.01			5,694			0.03
Acquisition accounting impacts of fair valuing inventory		908			0.00			7,560			0.04			16,971			0.09
Impacting operating expenses:
Integration, acquisition, restructuring and other costs		10,095			0.05			67,736			0.36			13,655			0.07
Amortization of intangible assets		93,646			0.49			100,588			0.53			114,708			0.61
Impairment on goodwill and intangible assets		—			—			55,000			0.29			3,400			0.02
Stock compensation expense		16,163			0.08			15,403			0.08			16,003			0.09
Noncontrolling interest share ofnon-GAAP adj		(804	)		—			(20,026	)		(0.11	)		(2,321	)		(0.01	)
Impacting other (income)/expense:
Impairment (gain) on investments		2,750			0.01			—			—			—			—
Debt amendment fees		—			—			3,069			0.02			—			—
Remeasurement of certain deferred tax liabilities		2,112			0.01			852			—			3,697			0.02
Impacting income tax expense:
Net tax items		(13,333	)		(0.07	)		(73,267	)		(0.39	)		(24,541	)		(0.13	)
Total highlighted items		117,212			0.61			153,193			0.81			150,519			0.80
Adjusted net income	$	78,114		$	0.40		$	165,662		$	0.88		$	136,919		$	0.73
Weighted average ordinary shares - basic					189,796						186,548						184,805
Weighted average ordinary shares - diluted					192,879						188,829						187,175

ARRIS INTERNATIONAL PLC

PRELIMINARY SUPPLEMENTAL GAAP TO ADJUSTED SALES & GROSS MARGIN RECONCILIATION

(in thousands)

(unaudited)

	Q1 2017			Q4 2017			Q1 2018
Sales - GAAP		1,483,105			1,738,593			1,577,710
Adjustment to revenue related to warrants		2,423			(8,145	)		—
Acquisition accounting impacts of deferred revenue		—			1,120			5,694
Adjusted Sales -Non- GAAP		1,485,528			1,731,569			1,583,404
GAAP Gross Margin		337,257			494,469			475,683
Acquisition accounting impacts of fair valuing inventory		908			7,560			16,971
Acquisition accounting impacts of deferred revenue		—			1,120			5,694
Stock compensation expense		3,252			3,303			3,253
Adjustment to revenue related to warrants		2,423			(8,145	)		—
Adjusted Gross Margin -Non-GAAP		343,840			498,307			501,601
GAAP Gross Margin - %		22.7	%		28.4	%		30.2	%
Adjusted Gross Margin -Non-GAAP - %		23.1	%		28.8	%		31.7	%

ARRIS INTERNATIONAL PLC

PRELIMINARY SUPPLEMENTAL GAAP TO ADJUSTED SALES & ADJUSTED DIRECT CONTRIBUTION RECONCILIATION

(in thousands)

(unaudited)

	Q1 2018
	Network & Cloud			CPE			Enterprise			Corp/ Other			Total
Net Sales		538,264			875,226			169,914			(5,694	)		1,577,710
Non GAAP Adjustments(1)		—			—			—			5,694			5,694
Adjusted Net Sales		538,264			875,226			169,914			0			1,583,404
Direct Contribution (2)		228,538			49,761			25,528			(159,145	)		144,683
Adjusted Direct Contribution(3)		214,717			43,154			25,927			(96,980	)		186,818
Adjusted Direct Contribution % of sales		39.9	%		4.9	%		15.3	%					11.8	%
Other Items
Amortization of intangibles		25,135			63,248			25,510			815			114,708
Impairment of goodwill		3,400			—			—			—			3,400
Integration, acquisition, restructuring and other costs		—			—			3,066			10,589			13,655
Depreciation expense		6,900			7,716			3,565			4,698			22,880
Equity compensation expense		7,771			5,298			2,387			3,801			19,256

(1) Impact of adjustment related to acquisition accounting impacts

(2) Defined as gross margin less direct operating expenses, excluding amortization of intangible assets, restructuring charges, acquisition, integration and other costs.

(3) Defined as direct contribution less allocated facility costs, service provider sales and marketing costs plus equity compensation and depreciation expense

ARRIS INTERNATIONAL PLC

PRELIMINARY SUPPLEMENTAL DIRECT CONTRIBUTION TO ADJUSTED DIRECT CONTRIBUTION RECONCILIATION

(in thousands)

(unaudited)

	Q1 2018
	Network & Cloud			CPE			Enterprise			Corp/ Other			Total
Direct Contribution (1)		228,538			49,761			25,528			(159,145	)		144,683
Allocated costs(2)		(28,492	)		(19,622	)		(5,553	)		53,666			—
Direct Contribution after allocation		200,046			30,139			19,976			(105,479	)		144,683
Equity compensation expense		7,771			5,298			2,387			3,801			19,256
Depreciation expense		6,900			7,716			3,565			4,698			22,880
Adjusted Direct Contribution		214,717			43,154			25,927			(96,980	)		186,818

(1) Defined as gross margin less direct operating expenses, excluding amortization of intangible assets, restructuring charges, acquisition, integration and other costs.

(2) Allocated facility costs and service provider sales and marketing costs

ARRIS INTERNATIONAL PLC

PRELIMINARY SUPPLEMENTAL GAAP TO ADJUSTED EPS GUIDANCE RECONCILIATION

(in millions, except per share data)

	Q2 2018 Guidance	FY 2018 Guidance
Estimated GAAP EPS	$0.24 - $0.29	$0.73 - $0.98
Reconciling Items:
Amortization of intangibles	0.47	1.98
Stock compensation expense	0.13	0.50
Integration, acquisition, restructuring and other costs	0.05	0.13
Purchase accounting Items	0.01	0.16
Impairment of goodwill	0.00	0.02
NettTax items	(0.18)	(0.72)
Subtotal	0.48	2.07
Estimated Adjusted(Non-GAAP) EPS	$0.72 - $0.77	$2.80 - $3.05

Notes to GAAP to AdjustedNon-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certainnon-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplementalnon-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. Thesenon-GAAP measures are among the factors management uses in planning for and forecasting future periods.Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP. Ournon-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Reduction in Revenue Related to Warrants: We entered into agreements with two customers for the issuance of warrants to purchase up to 14.0 million of ARRIS’s ordinary shares. Vesting of the warrants is subject to certain purchase volume commitments, and therefore the accounting guidance requires that we record any change in the fair value of warrants as a reduction in revenue. Until final vesting, changes in the fair value of the warrants will be marked to market and any adjustment recorded in revenue. We have excluded the effect of the implied fair value in calculating ournon-GAAP financial measures. We believe it is useful to understand the effects of these items on our total revenues and gross margin.

Acquisition Accounting Impacts Related to Deferred Revenue: In connection with the accounting related to our acquisitions, business combination rules require us to account for the fair values of deferred revenue arrangements for post contract support in our purchase accounting. Thenon-GAAP adjustment to our sales and cost of sales is intended to include the full amounts of such revenues as if these purchase accounting adjustments had not been applied. We believe the adjustment to these revenues is useful as a measure of the ongoing performance of our business. We historically have experienced high renewal rates related to our support agreements, and our objective is to increase the renewal rates on acquired post contract support agreements. However, we cannot be certain that our customers will renew their contracts.

Stock-Based Compensation Expense: We have excluded the effect of stock-based compensation expenses in calculating ournon-GAAP operating expenses and net income (loss) measures. Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We recordnon-cash compensation expense related to grants of restricted stock units. Depending upon the size, timing and the terms of the grants, thenon-cash compensation expense may vary significantly but will recur in future periods.

Acquisition Accounting Impacts Related to Inventory Valuation: In connection with the accounting related to our acquisitions, business combinations rules require the acquired inventory be recorded at fair value on the opening balance sheet. This is different from historical cost. Essentially, we are required to write the inventory up to the end customer price less a reasonable margin as a distributor. We have excluded the resulting adjustments in inventory and cost of goods sold as the historic and forward gross margin trends will differ as a result of the adjustments. We believe it is useful to understand the effects of this on cost of goods sold and margin.

Integration, Acquisition, Restructuring and Other Costs: We have excluded the effect of acquisition, integration, and other expenses and the effect of restructuring expenses in calculating ournon-GAAP operating expenses and net income measures. We incurred expenses in connection with the Pace and Ruckus Networks acquisitions, which we generally would not otherwise incur in the periods presented as part of our continuing operations. Acquisition and integration expenses consist of transaction costs, costs for transitional employees, other acquired employee related costs, and integration related outside services. Restructuring expenses consist of employee severance, abandoned facilities, product line disposition and other exit costs. We believe it is useful to understand the effects of these items on our total operating expenses.

Impairment of Goodwill and Intangible Assets: We have excluded the effect of the estimated impairment of goodwill and intangible assets in calculating ournon-GAAP operating expenses and net income measures. Although an impairment does not directly impact the Company’s current cash position, such expense represents the declining value of the business, technology and other intangible assets that were acquired. We exclude these impairments when significant and they are not reflective of ongoing business and operating results.

Amortization of Intangible Assets: We have excluded the effect of amortization of intangible assets in calculating ournon-GAAP operating expenses and net income (loss) measures. Amortization of intangible assets isnon-cash, and is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

Noncontrolling Interest share ofNon-GAAP Adjustments: The joint venture formed for the ActiveVideo acquisition is accounted for by ARRIS under the consolidation method. As a result, the consolidated Statements of Income include the revenues, expenses, and gains and losses of the noncontrolling interest. The amount of net income (loss) related to the noncontrolling interest are reported and presented separately in the consolidated Statements of Income. We have excluded the noncontrolling share of anynon- GAAP adjusted measures recorded by the venture, as we believe it is useful to understand the effect of excluding this item when evaluating our ongoing performance.

Impairment (Gain) on Investments: We have excluded the effect of other-than-temporary impairments and certain gains on investments in calculating ournon-GAAP financial measures. We believe it is useful to understand the effect of thisnon-cash item in our other expense (income).

Debt Amendment Fees: In 2017 and 2015, the Company amended its credit agreement. This debt modification allowed us to improve the terms and conditions of the credit agreement, extend the maturities of certain loan facilities, increase the amount of the revolving credit facility, and add new term loan facility. We have excluded the effect of the associated fees in calculating ournon-GAAP financial measures. We believe it is useful to understand the effect of this item in our other expense (income).

Remeasurement of Deferred Taxes: The Company records foreign currency remeasurement gains and losses related to deferred tax liabilities in the United Kingdom. The foreign currency remeasurement gains and losses derived from the remeasurement of the deferred income taxes from GBP to USD. We have excluded the impact of these gains and losses in the calculation of ournon-GAAP measures. We believe it is useful to understand the effects of this item on our total other expense (income).

Income Tax Expense (Benefit): We have excluded the tax effect of thenon-GAAP items mentioned above. Additionally, we have excluded the effects of certain tax adjustments related to tax and legal restructuring, state andnon-US valuation allowances, benefits for releases of uncertain tax positions due to settlement, change in law or statute of limitations and provision to return differences.