Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 27, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ADTN | ||
Entity Registrant Name | ADTRAN Holdings, Inc. | ||
Entity Central Index Key | 0000926282 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 78,630,365 | ||
Entity Public Float | $ 852,431,295 | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 000-41446 | ||
Entity Tax Identification Number | 87-2164282 | ||
Entity Address, Address Line One | 901 Explorer Boulevard | ||
Entity Address, City or Town | Huntsville | ||
Entity Address, State or Province | AL | ||
Entity Address, Postal Zip Code | 35806-2807 | ||
City Area Code | 256 | ||
Local Phone Number | 963-8000 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement for the registrant's 2023 Annual Meeting of Stockholders are incorporated herein by reference in Part III to the extent described in Part III. | ||
Auditor Name | PricewaterhouseCoopers LLP; | ||
Auditor Firm ID | 238 | ||
Auditor Location | Birmingham, Alabama |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 108,644 | $ 56,603 |
Restricted cash | 215 | |
Short-term investments (includes $340 and $350 of available-for-sale securities as of December 31, 2022 and 2021, respectively, reported at fair value) | 340 | 350 |
Accounts receivable, less allowance for credit losses of $49 and $0 as of December 31, 2022 and 2021, respectively | 279,435 | 158,742 |
Other receivables | 32,831 | 11,228 |
Inventory, net | 427,531 | 139,891 |
Prepaid expenses and other current assets | 33,577 | 9,296 |
Total Current Assets | 882,358 | 376,325 |
Property, plant and equipment, net | 110,699 | 55,766 |
Deferred tax assets, net | 6,210 | 9,079 |
Goodwill | 381,724 | 6,968 |
Intangibles, net | 401,211 | 19,293 |
Other non-current assets | 66,998 | 30,971 |
Long-term investments (includes $8,9143 and $29,717 of available-for-sale securities as of December 31, 2022 and 2021, respectively, reported at fair value) | 32,665 | 70,615 |
Total Assets | 1,881,865 | 569,017 |
Current Liabilities | ||
Accounts payable | 237,699 | 102,489 |
Revolving credit agreements outstanding | 95,936 | |
Notes Payable | 24,598 | |
Unearned revenue | 41,193 | 17,737 |
Accrued expenses and other liabilities | 35,235 | 13,673 |
Accrued wages and benefits | 44,882 | 14,900 |
Income tax payable, net | 9,032 | 6,560 |
Total Current Liabilities | 488,575 | 155,359 |
Non-current unearned revenue | 19,239 | 9,271 |
Pension liability | 10,624 | 11,402 |
Deferred compensation liability | 26,668 | 31,383 |
Non-current lease obligations | 22,807 | 3,269 |
Other non-current liabilities | 10,339 | 1,231 |
Total Liabilities | 578,252 | 211,915 |
Commitments and contingencies (see Note 20) | ||
Equity | ||
Common stock, par value $0.01 per share; 200,000 shares authorized; 78,088 shares issued and 77,889 shares outstanding as of December 31, 2022 and 79,652 shares issued and 48,24149,063 shares outstanding as of December 31, 2021 | 781 | 797 |
Additional paid-in capital | 895,834 | 288,946 |
Accumulated other comprehensive income (loss) | 46,713 | (11,914) |
Retained earnings | 55,338 | 740,820 |
Less treasury stock at cost: 198 and 30,590 shares as of December 31, 2022 and 2021, respectively | (4,125) | (661,547) |
Non-controlling interest | 309,072 | |
Total Equity | 1,303,613 | 357,102 |
Total Liabilities and Equity | $ 1,881,865 | $ 569,017 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Short term investments, available-for-sale securities at fair value | $ 340 | $ 350 |
Accounts receivable, allowance for credit losses | 49 | 0 |
Long-term investments, available-for-sale securities fair value | $ 8,913 | $ 29,717 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 78,088,000 | 79,652,000 |
Common stock, shares outstanding | 77,889,000 | 49,063,000 |
Treasury stock, shares | 198,000 | 30,590,000 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 1,025,536,000 | $ 563,004,000 | $ 506,510,000 |
Cost of Revenue | |||
Total Cost of Revenue | 698,284,000 | 344,627,000 | 288,959,000 |
Gross Profit | 327,252,000 | 218,377,000 | 217,551,000 |
Selling, general and administrative expenses | 208,889,000 | 124,414,000 | 113,972,000 |
Research and development expenses | 173,757,000 | 108,663,000 | 113,287,000 |
Asset impairment | 17,433,000 | 0 | 65,000 |
Operating Loss | (72,827,000) | (14,700,000) | (9,773,000) |
Interest and dividend income | 2,123,000 | 2,844,000 | 1,936,000 |
Interest expense | (3,437,000) | (34,000) | (5,000) |
Net investment (loss) gain | (11,339,000) | 1,761,000 | 4,850,000 |
Other income (expense), net | 14,517,000 | 3,824,000 | (3,254,000) |
Loss Before Income Taxes | (70,963,000) | (6,305,000) | (6,246,000) |
Income tax benefit (expense) | 62,075,000 | (2,330,000) | 8,624,000 |
Net (Loss) Income | (8,888,000) | (8,635,000) | 2,378,000 |
Less: Net Loss attributable to non-controlling interest | (6,851,000) | ||
Net Income (Loss) | $ (2,037,000) | $ (8,635,000) | $ 2,378,000 |
Weighted average shares outstanding – basic | 62,346 | 48,582 | 47,996 |
Weighted average shares outstanding – diluted | 62,346 | 48,582 | 48,288 |
(Loss) earnings per common share attributable to ADTRAN Holdings, Inc. - basic | $ (0.03) | $ (0.18) | $ 0.05 |
(Loss) earnings per common share attributable to ADTRAN Holdings, Inc. - diluted | $ (0.03) | $ (0.18) | $ 0.05 |
Network Solutions [Member] | |||
Revenue | |||
Total revenue | $ 916,793,000 | $ 498,834,000 | $ 438,015,000 |
Cost of Revenue | |||
Total Cost of Revenue | 647,105,000 | 307,841,000 | 244,226,000 |
Gross Profit | 269,688,000 | 190,993,000 | 193,789,000 |
Services & Support [Member] | |||
Revenue | |||
Total revenue | 108,743,000 | 64,170,000 | 68,495,000 |
Cost of Revenue | |||
Total Cost of Revenue | 51,179,000 | 36,786,000 | 44,733,000 |
Gross Profit | $ 57,564,000 | $ 27,384,000 | $ 23,762,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net (Loss) Income | $ (8,888) | $ (8,635) | $ 2,378 |
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized (loss) gain on available-for-sale securities | (284) | (584) | 316 |
Defined benefit plan adjustments | 4,597 | 4,008 | (395) |
Foreign currency translation gain (loss) | 53,396 | (3,699) | 4,857 |
Other Comprehensive (loss) Income, net of tax | 57,709 | (275) | 4,778 |
Less: Comprehensive Loss attributable to non-controlling interest, net of tax | (918) | ||
Comprehensive Income (Loss) attributable to ADTRAN Holdings, Inc., net of tax | $ 49,739 | $ (8,910) | $ 7,156 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | ADVA Optical Networking SE [Member] | Common Stock [Member] | Common Stock [Member] ADVA Optical Networking SE [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] ADVA Optical Networking SE [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] | Non-controlling Interest [Member] ADVA Optical Networking SE [Member] |
Beginning Balance at Dec. 31, 2019 | $ 380,426 | $ 797 | $ 274,632 | $ 806,702 | $ (685,288) | $ (16,417) | |||||
Beginning Balance, Shares at Dec. 31, 2019 | 79,652 | ||||||||||
Net income (loss) | 2,378 | 2,378 | |||||||||
Other comprehensive income (loss), net of tax | 4,778 | 4,778 | |||||||||
Dividend payments ($0.09 per share) | (17,334) | (17,334) | |||||||||
Dividends accrued on unvested restricted stock units | (180) | (180) | |||||||||
Deferred compensation adjustments, net of tax | (2,806) | (2,806) | |||||||||
PSUs, RSUs and restricted stock vested | (1,152) | (9,753) | 8,601 | ||||||||
Stock-based compensation expense | 6,834 | 6,834 | |||||||||
Ending Balance at Dec. 31, 2020 | 372,944 | $ 797 | 281,466 | 781,813 | (679,493) | (11,639) | |||||
Ending Balance, Shares at Dec. 31, 2020 | 79,652 | ||||||||||
Net income (loss) | (8,635) | (8,635) | |||||||||
Other comprehensive income (loss), net of tax | (275) | (275) | |||||||||
Dividend payments ($0.09 per share) | (17,529) | (17,529) | |||||||||
Non-cash dividend payments ($0.09 per share) | (5) | 5 | |||||||||
Dividends accrued on unvested restricted stock units | (320) | (320) | |||||||||
Deferred compensation adjustments, net of tax | (1,248) | (1,248) | |||||||||
Stock options exercised | 6,432 | (1,842) | 8,274 | ||||||||
PSUs, RSUs and restricted stock vested | (1,747) | (12,662) | 10,915 | ||||||||
Stock-based compensation expense | 7,480 | 7,480 | |||||||||
Ending Balance at Dec. 31, 2021 | $ 357,102 | $ 797 | 288,946 | 740,820 | (661,547) | (11,914) | |||||
Ending Balance, Shares at Dec. 31, 2021 | 79,652 | 79,652 | |||||||||
Net income (loss) | $ (8,888) | (2,037) | $ (6,851) | ||||||||
Acquisition of ADVA | $ 894,675 | $ 280 | $ 577,980 | $ 316,415 | |||||||
Acquisition of ADVA, Shares | 27,995 | ||||||||||
Retirement of treasury stock | $ (303) | (655,761) | 656,064 | ||||||||
Retirement of treasury stock, Shares | (30,330) | ||||||||||
Other comprehensive income (loss), net of tax | 57,709 | 58,627 | (918) | ||||||||
Dividend payments ($0.09 per share) | (22,885) | (22,885) | |||||||||
Dividends accrued on unvested restricted stock units | 353 | 353 | |||||||||
Deferred compensation adjustments, net of tax | (71) | (71) | |||||||||
Stock options exercised | $ 6,131 | 726 | $ 3 | 472 | 5,330 | 798 | 254 | ||||
Stock options exercised, Shares | 519 | 399 | |||||||||
PSUs, RSUs and restricted stock vested | $ (9,847) | $ 4 | (10,482) | 631 | |||||||
PSUs, RSUs and restricted stock vested, Shares | 372 | ||||||||||
Stock-based compensation expense | 26,141 | $ 2,181 | 26,141 | $ 2,108 | $ 73 | ||||||
Reclassification of ADVA stock options | 286 | 187 | 99 | ||||||||
Ending Balance at Dec. 31, 2022 | $ 1,303,613 | $ 781 | $ 895,834 | $ 55,338 | $ (4,125) | $ 46,713 | $ 309,072 | ||||
Ending Balance, Shares at Dec. 31, 2022 | 78,088 | 78,088 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends payments | $ 0.09 | $ 0.09 | $ 0.09 |
Non-cash dividend payments | $ 0.09 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (8,888,000) | $ (8,635,000) | $ 2,378,000 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 67,553,000 | 16,084,000 | 16,627,000 |
Asset impairment | 17,433,000 | 0 | 65,000 |
Amortization of debt issuance cost | 288,000 | ||
Amortization of net discount on available-for-sale investments | 19,000 | 108,000 | |
Loss (gain) on investments | 9,826,000 | (5,127,000) | (5,802,000) |
Net loss on disposal of property, plant and equipment | 152,000 | 4,000 | |
Stock-based compensation expense | 28,322,000 | 7,480,000 | 6,834,000 |
Deferred income taxes | (62,388,000) | (1,784,000) | (1,356,000) |
Inventory reserves | (2,363,000) | (5,029,000) | (5,398,000) |
Other, net | 216,000 | ||
Change in operating assets and liabilities: | |||
Accounts receivable, net | 788,000 | (60,864,000) | (7,269,000) |
Other receivables | (20,088,000) | 9,752,000 | (4,732,000) |
Inventory | (73,237,000) | (10,638,000) | (20,184,000) |
Prepaid expenses, other current assets and other assets | (7,116,000) | (7,146,000) | (5,239,000) |
Accounts payable | 28,105,000 | 53,270,000 | 4,543,000 |
Accrued expenses and other liabilities | (20,483,000) | 10,063,000 | 5,093,000 |
Income taxes payable | (2,151,000) | 5,470,000 | (2,294,000) |
Net cash (used in) provided by operating activities | (44,228,000) | 3,008,000 | (16,518,000) |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (17,072,000) | (5,669,000) | (6,413,000) |
Proceeds from sales and maturities of available-for-sale investments | 51,661,000 | 50,466,000 | 105,100,000 |
Purchases of available-for-sale investments | (23,899,000) | (35,031,000) | (56,767,000) |
Proceeds from beneficial interests in securitized accounts receivable | 1,126,000 | ||
Proceeds from disposals of property, plant and equipment | 12,000 | 2,000 | |
Insurance proceeds received | 500,000 | ||
Acquisition of note receivable | (523,000) | ||
Acquisition of business, net of cash acquired | 44,003,000 | ||
Net cash provided by investing activities | 55,831,000 | 10,266,000 | 41,399,000 |
Cash flows from financing activities: | |||
Tax withholdings related to stock-based compensation settlements | (4,253,000) | (1,860,000) | (1,043,000) |
Proceeds from stock option exercises | 6,904,000 | 6,431,000 | |
Dividend payments | (22,885,000) | (17,529,000) | (17,334,000) |
Proceeds from draw on revolving credit agreements | 141,887,000 | 10,000,000 | |
Repayment of revolving credit agreements | (48,000,000) | (10,000,000) | |
Payment of debt issuance cost | (3,015,000) | ||
Repayment of bonds payable | (24,600,000) | ||
Repayment of notes payable | (17,702,000) | ||
Net cash provided by (used in) financing activities | 52,936,000 | (12,958,000) | (42,977,000) |
Net increase (decrease) in cash and cash equivalents | 64,539,000 | 316,000 | (18,096,000) |
Effect of exchange rate changes | (12,713,000) | (3,677,000) | 4,502,000 |
Cash, cash equivalents and restricted cash, beginning of year | 56,818,000 | 60,179,000 | 73,773,000 |
Cash, cash equivalents and restricted cash, end of year | 108,644,000 | 56,818,000 | 60,179,000 |
Supplemental disclosure of cash financing activities | |||
Cash paid for interest | 1,728,000 | 13,000 | 24,000 |
Cash paid for income taxes | 3,832,000 | 1,780,000 | 7,609,000 |
Cash used in operating activities related to operating leases | 5,229,000 | 1,892,000 | 2,632,000 |
Supplemental disclosure of non-cash investing activities | |||
Right-of-use assets obtained in exchange for operating lease obligations | 3,410,000 | 1,875,000 | 324,000 |
Purchases of property, plant and equipment included in accounts payable | 1,165,000 | $ 638,000 | $ 108,000 |
ADVA common shares exchanged in acquisition | 565,491,000 | ||
ADVA options assumed in acquisition | 12,769,000 | ||
Non-controlling interest related to ADVA | $ 316,415,000 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Note 1 – Nature of Business ADTRAN Holdings, Inc. (“ADTRAN” or the “Company”) is a leading global provider of networking and communications platforms, software, systems and services focused on the broadband access market, serving a diverse domestic and international customer base in multiple countries that includes Tier-1, -2 and -3 service providers, alternative service providers, such as utilities, municipalities and fiber overbuilders, cable/MSOs, SMBs and distributed enterprises. Our innovative solutions and services enable voice, data, video and internet-communications across a variety of network infrastructures and are currently in use by millions worldwide. We support our customers through our direct global sales organization and our distribution networks. Our success depends upon our ability to increase unit volume and market share through the introduction of new products and succeeding generations of products having optimal selling prices and increased functionality as compared to both the prior generation of a product and to the products of competitors in order to gain market share. To service our customers and grow revenue, we are continually conducting research and developing new products addressing customer needs and testing those products for the specific requirements of the particular customers. We offer a broad portfolio of flexible software and hardware network solutions and services that enable service providers to meet today’s service demands, while enabling them to transition to the fully converged, scalable, highly-automated, cloud-controlled voice, data, internet and video network of the future. In addition to our global headquarters in Huntsville, Alabama, and our European headquarters in Munich, Germany, we have sales and research and development facilities in strategic global locations. In 2022, following the business combination (the “Business Combination”) with ADVA Optical Networking SE (“ADVA”), which included the Merger, we became the sole owner of and successor to ADTRAN, Inc. and the majority shareholder of ADVA. ADTRAN, Inc. is a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video, and internet communications across any network infrastructure. Its award-winning end-to-end fiber broadband solutions portfolio spans from OLTs to in-home services and intelligent SaaS solutions. ADVA is a global provider of open networking solutions with over 25 years of experience in optical networking, carrier Ethernet access and network synchronization. ADVA has led the industry for over two decades with open and secure networking solutions that carefully balance space, power and cost. Together, we serve customers in a broad range of industries in over 100 countries. Principles of Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the financial position, results of operations, comprehensive (loss) income, changes in equity and cash flows of ADTRAN and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Significant estimates include allowance for credit losses on accounts receivable and contract assets, excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of the deferred revenue related to performance obligations under contracts with customers, estimated costs to complete obligations associated with deferred and accrued revenues and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimates of intangible assets upon measurement, estimated pension liability and fair value of investments. Actual amounts could differ significantly from these estimates. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of the SARS-CoV-2 coronavirus/COVID-19 global pandemic (or variants of the SARS-CoV-2 coronavirus), supply chain constraints, inflationary pressures, the energy crisis, currency fluctuations and political tensions as of December 31, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for credit losses, stock-based compensation, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets, revenue recognition and costs of revenue. Future conditions related to the magnitude and duration of the COVID-19 pandemic, as well as other factors, including supply chain constraints and inflationary pressures could result in further impacts to the Company's consolidated financial statements in future reporting periods. Correction of Immaterial Misstatements During the first quarter of 2020, it was determined that certain investments held in the Company’s stock for a deferred compensation plan accounted for as a Rabbi trust were incorrectly classified as long-term investments with the fair value of such investments incorrectly marked to market at each period end rather than classified as treasury stock held at historical cost. This plan has been in existence since 2011. The Company corrected this misstatement as an out-of-period adjustment in the three months ended March 31, 2020 and the twelve months ended December 31, 2020, by remeasuring the investment assets to their historical cost basis through the recording of a net investment gain of $ 1.5 million in the Consolidated Statement of (Loss) Income and then correcting the classification by decreasing the long-term investment balance at its remeasured cost basis of $ 2.8 million to treasury stock in the Consolidated 2020 Balance Sheet. Management has determined that this misstatement was not material to any of its previously issued financial statements and that correction of the misstatement was not material to the 2020 annual financial results on either a quantitative or qualitative basis. Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents represent demand deposits, money market funds and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. As of December 31, 2022 , $ 100.1 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 12. The estimated fair value of our notes payable, approximates the carrying value and is classified as Level II under the fair value hierarchy. The carrying value of our notes payable is included in Note 14. Investments with contractual maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments is recorded as interest income. We have not recorded any losses relating to variable rate demand notes. Long-term investments is comprised of deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency-backed bonds, U.S. and foreign government bonds, marketable equity securities and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Any changes in fair value are recognized in net investment (loss) gain. Realized gains and losses on sales of debt securities are computed under the specific identification method and are included in other income (expense). See Note 6 for additional information. For financing receivables, the Company does not measure the allowance for credit losses for accrued interest receivables, as the uncollectable accrued interest receivable is written off by reversing any previously recorded interest income in a timely manner (as soon as these amounts are determined to be uncollectable). Accounts Receivable We record accounts receivable at amortized cost. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. As of December 31, 2022 , single customers comprising more than 10% of our total accounts receivable balance included three customers, which accounted for 33.1 % of our total accounts receivable. As of December 31, 2022, these three customers individually accounted for 11.4 %, 11.1 % and 10.6 %, respectively, of our total accounts receivable. As of December 31, 2021, single customers comprising more than 10% of our total accounts rece ivable balance included three customers, which accounted for 59.9 % of our total accounts receivable. As of December 31, 2021, these three customers individually accounted fo r 35.8 %, 12.1 % and 12.0 %, respectively, of our total accounts receivable. We regularly review the need for an allowance for credit losses related to our outstanding accounts receivable balances using the historical loss-rate method as well as assessing asset-specific risks. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition or credit rating by geographic location, as provided by a third party and/or by customer, if needed, and overall macro-economic conditions in which the customer operates. Based on this assessment, an allowance for credit losses would be recorded if the Company determined that, based on our historical write-offs, which have been immaterial, and such asset specific risks, there was risk in collectability of the full amount of any accounts receivable. Accounts Receivable Factoring The Company has entered into a factoring agreement to sell certain receivables to an unrelated third-party financial institution on a non-recourse basis. These transactions are accounted for in accordance with Accounting Standards Codification ("ASC") Topic 860, Transfers and Servicing, and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Trade accounts receivables balances sold are removed from the Consolidated Balance Sheets and cash received is reflected as cash provided by (used in) operating activities in the Consolidated Statements of Cash Flow. Factoring related interest expense is recorded to interest expense on the Consolidated Statements of Loss. On each sale date, the financial institution retains from the sale price a default reserve, up to a required balance, which are held by the financial institution in a reserve account and pledged to the Company. The financial institution is entitled to withdraw from the reserve account the sale price of a defaulted receivable. The balance in the reserve account is included in other assets on the Consolidated Balance Sheets. Inventory Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory and are updated at least quarterly. We establish reserves for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which consider historical usage, known trends, inventory age and market conditions. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 7 for additional information. Property, Plant and Equipment Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years , office machinery and equipment from three to seven years , engineering machinery and equipment from three to seven years , and computer software from three to five years . Expenditures for repairs and maintenance are charged to expense as incurred. Major improvements that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating loss. See Note 8 for additional information. Intangible Assets Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets. See Note 11 for additional information. Impairment of Long-Lived Assets and Intangibles Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no t be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs. As a result the Company recognized impairment charges of $ 17.4 million during the year ended December 31, 2022 related to capitalized implementation costs for a cloud computing arrangement. The impairment charges were determined based on actual costs incurred. There were no impairment losses for long-lived assets during the years ended December 31, 2021 and 2020, or for intangible assets recognized during the years ended December 31, 2022, 2021 or 2020. Goodwill Goodwill represents the excess purchase price over the fair value of net assets acquired. The carrying value of goodwill is tested for impairment in the fourth quarter of each year or more frequently if events or circumstances indicate it may be impaired. The quantitative goodwill impairment test is performed at the level of the reporting unit. The identification of our reporting units begins at the operating segment level and considers whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment. For goodwill impairment testing purposes, the Company determined the Company's reporting units are generally the same as its operating segments, which are identified in Note 18 to the Consolidated Financial Statements. Our general policy is to qualitatively assess the carrying value of goodwill each reporting period for events or changes in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Related to the Business Combination with ADVA the Company recognized $ 350.5 million of goodwill upon the merger on July 15, 2022. Therefore, we decided to proceed directly to the quantitative test of goodwill and forego the qualitative assessment. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. We also estimate the fair value of our reporting units based on a peer group analysis, whereby companies in the telecommunications industry or with a comparable product and market structure are used to calculate a fair enterprise value using revenue, EBITDA and debt multiples of trading value. Based on our analysis, management concluded that there was no impairment of goodwill as of December 31, 2022. No impairment charges on goodwill were recognized during the years ended December 31, 2021 and 2020. Other Non-Current Assets Implementation costs incurred for hosting arrangements that are related to service contracts are capitalized and amortized over the term of the arrangement. Capitalized implementation costs totaled $ 6.2 million and $ 21.0 million as of December 31, 2022 and 2021, respectively and are included in other non-current assets on the Consolidated Balance Sheets. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs. As a result the Company recognized impairment charges of $ 16.9 million during the year ended December 31, 2022 related to capitalized implementation costs for a cloud computing arrangement. The impairment charges were determined based on actual costs incurred. During the year ended December 31, 2021 and 2020, no impairment charges were recognized. We depreciate capitalized implementation costs on a straight-line basis over ten years . Amortization expense was $ 3.9 million and $ 1.0 million for the years ended December 31, 2022 and 2021 , respectively, which is recorded almost entirely in selling, general and administrative expenses in the Consolidated Statements of (Loss) Income. No amortization expense was recognized for the year ended December 31, 2020 . Liability for Warranty Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time of product shipment based on our historical return rate and estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our estimates regarding future warranty obligations may change due to product failure rates, material usage and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. Our liability for warranty returns totaled $ 7.2 million and $ 5.4 million as of December 31, 2022 and 2021, respectively. Pension Benefit Plan Obligations We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Our net pension liability totaled $ 10.6 million and $ 11.4 million as of December 31, 2022 and 2021 , respectively. Lease Obligations We have operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. Other contracts, such as manufacturing agreements and service agreements, are reviewed to determine if they contain potential embedded leases. These other contracts are specifically reviewed to determine whether we have the right to substantially all of the economic benefit from the use of any specified assets or the right to direct the use of any specified assets, either of which would indicate the existence of a lease. Some of our leases include options to renew, with renewal terms of up to five years . For those leases that are reasonably assured to be renewed, we have included the option to extend as part of our right of use asset and lease liability. The exercise of lease renewal options is at our sole discretion. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we elected to not separate lease and non-lease components. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Stock-Based Compensation We have two stock incentive plans from which stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock are available for grant to employees and directors. Costs related to these awards are recognized over their vesting periods. Stock-based compensation expense recognized for the years ended December 31, 2022, 2021 and 2020 was approximately $ 28.3 million, $ 7.5 million, and $ 6.8 million, respectively. See Note 5 for additional information. Research and Development Costs Research and development costs include compensation for engineers and support personnel, contracted services, depreciation and material costs associated with new product development, enhancement of current products and product cost reductions. We continually evaluate new product opportunities and engage in intensive research for product and software development efforts. Research and development costs totaled $ 173.8 million, $ 108.7 million and $ 113.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. ADVA has arrangements with governmental entities for the purposes of obtaining funding for research and development activities. The Company classifies government grants received under these arrangements as a reduction to research and development expense incurred. For the year ended December 31, 2022, the Company recognized $ 1.1 million as a reduction of research and development expense. Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax basis of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change. Foreign Currency Transactions with customers that are denominated in foreign currencies are recorded using the appropriate exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro and our Australian subsidiary, whose functional currency is the Australian dollar. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive (loss) income. Revenue Revenue is measured based on the consideration expected to be received in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. Generally, this occurs with the transfer of control of a product to the customer. Review of contracts with customers, for both direct customers and distributors, are performed and assessment made regarding principal versus agent considerations to determine primary responsibility for delivery of performance obligation, presumed inventory risk, and discretion in establishing pricing, when applicable. For transactions where there are multiple performance obligations, individual products and services are accounted for separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices. Stand-alone selling prices are determined based on the prices at which the separate products and services are sold and are allocated based on each item’s relative value to the total value of the products and services in the arrangement. For items that are not sold separately, we estimate stand-alone selling prices primarily using the “expected cost plus a margin” approach. Payment terms are generally 30 days in the U.S. and typically longer in many geographic markets outside the U.S. Shipping fees are recorded as revenue and the related cost is included in cost of revenue. Revenue, value-added and other taxes collected concurrently with revenue-producing activities are excluded from revenue. Costs of obtaining a contract, if material, are capitalized and amortized over the period that the related revenue is recognized if greater than one year. We have elected to account for shipping fees as a cost of fulfilling the related contract. We have also elected to apply the practical expedient related to the incremental costs of obtaining contracts and recognize those costs as an expense when incurred if the amortization period of the assets is one year or less. These costs are included in selling, general and administrative expenses. Capitalized costs with an amortization period greater than one year were immaterial. Revenue is generated by two reportable segments: Network Solutions and Services & Support. Network Solutions Segment - Includes hardware products and software defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products. The majority of the revenue from this segment is from hardware revenue. Hardware and Software Revenue Revenue from hardware sales is recognized when control is transferred to the customer, which is generally when the products are shipped. Shipping terms are generally FOB shipping point. Revenue from software license sales is recognized at delivery and transfer of control to the customer. Revenue is recorded net of estimated discounts and rebates using historical trends. Customers are typically invoiced when control is transferred and revenue is recognized. Our products generally include assurance-based warranties of 90 days to five years for product defects, which are accrued at the time products are delivered. Services & Support Segment - Includes a complete portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services to complement our Network Solutions segment. Maintenance Revenue Our maintenance service periods range from one month to five years . Customers are typically invoiced and pay for maintenance services at the beginning of the maintenance period. We recognize revenue for maintenance services on a straight-line basis over the maintenance period as our customers benefit evenly throughout the contract term and deferred revenue, when applicable, are recorded in current and non-current unearned revenue. Network Implementation Revenue We recognize revenue for network implementation, which primarily consists of engineering, execution and enablement services at a point in time when each performance obligation is complete. If we have recognized revenue but have not billed the customer, the right to consideration is recognized as a contract asset that is included in other receivables on the Consolidated Balance Sheet. The contract asset is transferred to accounts receivable when the completed performance obligation is invoiced to the customer. See Notes 4 and 18 for additional information on reportable segments. Unearned Revenue Unearned revenue primarily represents customer billings on maintenance service programs and unearned revenue related to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one month to five years . Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple performance obligations where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets and totaled $ 1.5 million and $ 0.7 million as of December 31, 2022 and 2021 , respectively. Non-current deferred costs are included in other non-current assets on the accompanying Consolidated Balance Sheets and less than $ 0.1 million as of December 31, 2022 and $ 0.1 million as of December 31, 2021 . (Loss) Earnings per Share (Loss) earnings per common share and (loss) earnings per common share assuming dilution are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding |
Business Combination Agreement
Business Combination Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combination Agreement | Note 2 – Business Combination Agreement ADVA Optical Networking SE On August 30, 2021 , ADTRAN and ADVA, entered into a Business Combination Agreement, pursuant to which both companies agreed to combine their respective businesses and each become subsidiaries of a new holding company, ADTRAN Holdings, Inc. (formerly known as Acorn HoldCo, Inc.) which was formed as a wholly-owned subsidiary of ADTRAN in order to consummate the transactions under the Business Combination Agreement. Under the terms of the Business Combination Agreement, on July 8, 2022, Acorn MergeCo, Inc, a Delaware corporation and wholly-owned direct subsidiary of the Company, merged with and into ADTRAN Holdings, Inc. leaving ADTRAN Holdings, Inc. surviving the Business Combination as a wholly-owned direct subsidiary of the Company. Additionally, pursuant to the Business Combination Agreement, on July 15, 2022, the Compa ny made a public offer to exchange each issued and outstanding no-par value bearer share of ADVA for 0.8244 shares of Company Common Stock, par value $ 0.01 per share of the Company. The Exchange Offer was settled on Exchange Offer Settlement Date, on which date the Company acquired 33,957,538 bearer shares of ADVA, or 65.43 % of ADVA’s outstanding bearer shares as of the Exchange Offer Settlement Date, in exchange for the issuance of an aggregate of 27,994,595 shares of Company Common Stock. Additionally, pursuant to the Business Combination Agreement, ADVA stock option holders were entitled to have their ADVA stock options assumed by ADTRAN Holdings, Inc. (applying the exchange ratio in the Business Combination Agreement), thereafter representing options to acquire stock of ADTRAN, Inc. The fair value of the ADVA stock options assumed by ADTRAN, Inc. was $ 12.8 million, estimated using the Monte Carlo method. ADTRAN, Inc. and ADVA became subsidiaries of ADTRAN Holdings, Inc. as a result of the Business Combination. ADTRAN was determined to be the accounting acquirer of ADVA based on ADTRAN shareholders’ majority equity stake in the combined company, the composition of the board of directors and senior management of the combined company, among other factors. The Business Combination of ADVA has been accounted for using the acquisition method of accounting as per the provisions of Accounting Standards Codification 805, “Business Combinations” (“ASC 805”). The Business Combination Agreement used a fixed exchange ratio of Company Common Stock for ADVA shares of common stock, which resulted in a 36 % equity stake for ADVA stockholders and 64 % equity stake for ADTRAN stockholders in the post-closing combined company (calculated on a fully diluted basis and utilizing the tender of 65.43 % of ADVA’s current issued and outstanding share capital). Therefore, ADTRAN shareholders continue to hold a majority interest in the combined company after the Business Combination was completed. Additionally, the Board of Directors is comprised of six members from ADTRAN and three members from ADVA; the current ADTRAN chief executive officer acts as the chairman of the Board of Directors and the former ADVA chief executive officer as the vice chairman of the Board of Directors. Additionally, the current ADTRAN chief executive officer and ADTRAN chief financial officer hold these positions within the combined company. Based upon these and other considerations as outlined in ASC 805, ADTRAN represents the accounting acquirer. The following table summarizes the purchase price for the ADVA business combination: (In thousands, except shares, share price and exchange ratio) Purchase Price ADVA shares exchanged 33,957,538 Exchange ratio 0.8244 ADTRAN Holdings, Inc. shares issued 27,994,595 ADTRAN Holdings, Inc. share price on July 15, 2022 $ 20.20 Purchase price paid for ADVA shares $ 565,491 Equity compensation (1) $ 12,769 Total purchase price $ 578,260 (1) Represents the portion of replacement share-based payment awards that relates to pre-combination vesting. Assets acquired and liabilities assumed were recognized at their respective fair values as of July 15, 2022. In determining the fair value, the Company utilized various methods of the income, cost and market approaches depending on the asset or liability being fair valued. The estimation of fair value required significant judgment related to future net cash flows reflecting the risk inherent in each cash flow stream, competitive trends, market comparables and other factors. Inputs were generally determined by taking into account historical data, current and anticipated market conditions, and growth rates. Developed technology and customer relationships were valued using the multi-period excess earnings method. Backlog was valued using the distributor method. Significant assumptions used in the discounted cash flow analysis for (i) developed technology were the revenue growth rates, long-term revenue growth rate, discount rate, and earnings before interest, taxes, depreciation and amortization (“EBITDA”) margins, obsolescence factors, income tax rate, tax depreciation, and economic depreciation; (ii) customer relationships were earnings before interest and taxes (“EBIT”) margins, contributory asset charges, and customer attrition rate; and (iii) backlog were EBIT margins, adjusted EBIT margins, and contributory asset charges. The allocation of the purchase price to the assets acquired and liabilities assumed was subject to adjustment within the measurement period (up to one year from the acquisition date). The measurement period adjustments since initial preliminary estimates resulted from changes to the fair value estimates of the acquired assets and assumed liabilities based on finalizing the valuations of inventory, prepaid expenses and other current assets, property plant and equipment, intangible assets, other non-current assets and deferred tax assets and liabilities. The cumulative effect of all measurement period adjustments resulted in a decrease to recognized goodwill of $ 8.7 million. The following table summarizes the preliminary purchase price allocation for each major class of assets acquired and liabilities assumed in the acquisition of ADVA (in thousands): (In thousands) Total purchase price $ 578,260 Non-controlling interest $ 316,415 Net Assets: Cash and cash equivalents $ 44,003 Accounts receivable 114,659 Other receivables 1,457 Inventory 200,331 Prepaid expenses and other current assets 28,208 Property plant and equipment 55,480 Deferred tax assets 1,759 Identifiable intangible assets 403,780 Other non-current assets 31,074 Accounts payable ( 98,587 ) Current unearned revenue ( 26,047 ) Accrued expenses and other liabilities ( 59,600 ) Income tax payable, net ( 4,898 ) Current portion of notes payable ( 25,254 ) Tax liabilities ( 1,400 ) Non-current unearned revenue ( 11,498 ) Pension liability ( 6,820 ) Other non-current liabilities ( 6,094 ) Non-current portion of revolving credit agreements and notes payable ( 15,250 ) Non-current lease obligations ( 20,046 ) Deferred tax liabilities ( 61,040 ) Total net assets acquired $ 544,217 Goodwill $ 350,458 The allocation of the purchase price and fair value assessment of goodwill, deferred tax assets, and deferred tax liabilities continues to be preliminary. The acquisition accounting is subject to revision once the Company receives final information. It is possible that the final assessment of fair value may differ materially from the preliminary assessment. If the final assessment differs from this preliminary assessment, the measurement period adjustments will be recorded in the period in which they are determined as if they had been completed at the acquisition date. The preliminary fair value of the assets acquired include accounts receivable of $ 114.7 million and other receivables of $ 1.5 million. The unpaid principal balance under these receivables is $ 118.5 million and $ 1.5 million, respectively. The difference between the fair value and the unpaid principal balance primarily represents amounts expected to be uncollectible. The fair value of the identifiable intangible assets acquired as of the acquisition date: (In thousands) Estimated-average useful life (in years) (1) Fair value Income Statement Amortization Classification Developed technology 8.5 $ 291,925 Cost of revenue - Network Solutions Backlog 1.4 52,165 Cost of revenue - Network Solutions and Services & Support Customer relationships 10.5 32,704 Selling, general and administrative expenses Trade name 2.8 26,986 Selling, general and administrative expenses Total $ 403,780 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. Based on preliminary estimates, the ADVA acquisition resulted in the recognition of goodwill of $ 350.5 million, which the Company believes is attributable to the value driven by the Company’s expected growth of the business, synergies, and expanded market and product opportunities. Goodwill created as a result of the ADVA acquisition is not deductible for tax purposes. After the Business Combination, the chief operating decision maker assessed and will continue to assess the Company’s performance and allocate resources to its two segments (1) Network Solutions and (2) Services & Support. Based on preliminary estimates, the goodwill resulting from the Business Combination of $ 272.8 million was allocated to the Network Solutions segment, and $ 77.7 million was allocated to the Services & Support segment. See Note 18 of the Notes to Consolidated Financial Statements, included in this report for more information about the Company’s segments. As of the acquisition date, the fair value of the non-controlling interest was approximately $ 316.4 million and determined using a market approach. As a portion of ADVA shares will remain trading after the Business Combination, the non-controlling interest was calculated using 17,941,496 ADVA shares held by non-controlling interest multiplied by the ADVA closing share price of € 17.58 ($ 17.64 using the July 15, 2022 EUR to USD conversion rate of $ 1.00318 ) on July 15, 2022. The Company included the financial results of ADVA in its consolidated financial statements since July 15, 2022, the acquisition date. The net revenue and net loss from the ADVA business since July 15, 2022, were $ 365.9 million and $ 12.9 million, respectively, which are included in the Company’s Consolidated Statement of Loss. The net loss attributable to non-controlling interest from the ADVA business for the year ended December 31, 2022 was $ 6.9 million. As of December 31, 2022, the Company has incurred $ 26.1 million of transaction costs related to the Business Combination, of which $ 14.2 million and $ 11.9 million were incurred during the years ended December 31, 2022 and 2021, respectively. These transaction costs are recorded in selling, general and administrative expense in the Consolidated Statements of Loss. Supplemental Pro Forma Information (Unaudited) The unaudited pro forma financial information in the table below summarizes the combined results of operations for ADTRAN and ADVA as though the Business Combination had occurred on January 1, 2021. The pro forma amounts have been adjusted for differences in basis of accounting which are determined before taking into effect the impacts of purchase accounting and Business Combination accounting impacts. The following unaudited pro forma information is presented for illustrative purposes only. It is not necessarily indicative of the results of operations of future periods, the results of operations that actually would have been realized had the entities been a single company as of January 1, 2021, or the future operating results of the combined entities. The unaudited pro forma information does not give effect to the potential impact of current financial conditions, regulatory matters or any anticipated synergies, operating efficiencies or cost savings that may be associated with the acquisition. The unaudited pro forma information also does not include any integration costs that the Company may incur related to the acquisition as part of combining the operations of the companies. For the Years Ended (In thousands) 2022 2021 Revenue $ 1,410,296 $ 1,210,201 Net loss attributable to ADTRAN Holdings, Inc. $ ( 46,204 ) $ ( 91,423 ) |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Note 3 – Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows: (In thousands) December 31, 2022 December 31, 2021 Cash and cash equivalents $ 108,644 $ 56,603 Restricted cash — 215 Cash, cash equivalents and restricted cash $ 108,644 $ 56,818 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 4 - Revenue The following is a description of the principal activities from which revenue is generated by reportable segment: Network Solutions Segment - Includes hardware and software products that enable a digital future which support the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions. Services & Support Segment - Includes network design, implementation, maintenance and cloud-hosted services supporting the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions. Revenue by Category In addition to the Company's reportable segments, revenue is also reported for the following three categories – Subscriber Solutions, Access & Aggregation Solutions and Optical Networking Solutions. Prior to the Business Combination with ADVA on July 15, 2022, ADTRAN reported revenue across the following three categories: (1) Access & Aggregation, (2) Subscriber Solutions & Experience and (3) Traditional & Other Products. Following the Business Combination with ADVA, we have recast these revenues such that ADTRAN’s former Access & Aggregation revenue is combined with a portion of the applicable ADVA solutions to create Access & Aggregation Solutions, ADTRAN’s former Subscriber Solutions & Experience revenue is combined with a portion of the applicable ADVA solutions to create Subscriber Solutions, and the revenue from Traditional & Other products is now included in the applicable Access & Aggregation Solutions or Subscriber Solutions category. Optical Networking Solutions is a new revenue category added to represent a meaningful portion of ADVA’s portfolio. Our Subscriber Solutions portfolio is used by service providers to terminate their access services infrastructure at the customer premises while providing an immersive and interactive experience for residential, business and wholesale subscribers. This revenue category includes hardware- and software-based products and services. These solutions include fiber termination solutions for residential, business and wholesale subscribers, Wi-Fi access solutions for residential and business subscribers, Ethernet switching and network edge virtualization solutions for business subscribers, and cloud software solutions covering a mix of subscriber types. Our Access & Aggregation Solutions are solutions that are used by communications service providers to connect residential subscribers, business subscribers and mobile radio networks to the service providers’ metro network, primarily through fiber-based connectivity. This revenue category includes hardware- and software-based products and services. Our solutions within this category are a mix of fiber access and aggregation platforms, precision network synchronization and timing solutions, and access orchestration solutions that ensure highly reliable and efficient network performance. Our Optical Networking Solutions are used by communications service providers, internet content providers and large-scale enterprises to securely interconnect metro and regional networks over fiber. This revenue category includes hardware- and software-based products and services. Our solutions within this category include open optical terminals, open line systems, optical subsystems and modules, network infrastructure assurance systems, and automation platforms that are used to build high-scale, secure and assured optical networks. The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2022: (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 364,238 $ 26,216 $ 390,454 Access & Aggregation Solutions 326,934 47,068 374,002 Optical Networking Solutions 225,621 35,459 261,080 Total $ 916,793 $ 108,743 $ 1,025,536 The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2021: (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 189,825 $ 16,385 $ 206,210 Access & Aggregation Solutions 309,009 47,785 356,794 Optical Networking Solutions — — — Total $ 498,834 $ 64,170 $ 563,004 The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2020: (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 163,349 $ 15,315 $ 178,664 Access & Aggregation Solutions 274,666 53,180 327,846 Optical Networking Solutions — — — Total $ 438,015 $ 68,495 $ 506,510 The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of December 31, 2022 and December 31, 2021 related to contractual maintenance agreements, contractual SaaS and subscription services, and hardware contracts that exceed one year in duration amounted to $ 277.2 milli on and $ 101.1 million, respectively. As of December 31, 2022, approximately 66 % is expected to be recognized over the next 12 months , and the remainder recognized thereafter. The majority of the Company's remaining performance obligations at December 31, 2022 are related to contracts or orders that have an original expected duration of one year or less, for which the Company is electing to utilize the practical expedient available within the guidance, and are excluded from the transaction price related to these future obligations. The Company will generally satisfy the remaining performance obligations as we transfer control of the products ordered or services to our customers, excluding maintenance services, which are satisfied over time. The following table provides information about accounts receivable, contract assets and unearned revenue from contracts with customers: (In thousands) December 31, 2022 December 31, 2021 Accounts receivable $ 279,435 $ 158,742 Contract assets (1) $ 1,852 $ 464 Unearned revenue $ 41,193 $ 17,737 Non-current unearned revenue $ 19,239 $ 9,271 (1) Included in other receivables on the Consolidated Balance Sheets. The Company is party to a receivables purchase agreement with a third party financial institution (the “Factor”). As of December 31, 2022, accounts receivable totaling $ 14.9 million were sold, of which $ 1.2 million was retained by the Factor in the reserve account. The balance in the reserve account is included in other assets on the Consolidated Balance Sheets. As of December 31, 2022, the Company has an allowance for doubtful accounts related to factored accounts receivable totalin g less than $ 0.1 million. The cost of receivables purchase agreement is included in interest expense in the Consolidated Statements of Loss and totaled $ 0.3 million for the year ended December 31, 2022. Of the outstanding unearned revenue balances as of December 31, 2021, $ 14.0 m illion was recognized as revenue during the year ended December 31, 2022, respective ly. Of the outstanding unearned revenue balances as of December 31, 2020, $ 11.2 million was recognized as revenue during the year ended December 31, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 5 – Stock-Based Compensation The following table summarizes stock-based compensation expense related to stock options, PSUs, RSUs and restricted stock for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Stock-based compensation expense included in cost of revenue $ 2,876 $ 543 $ 426 Selling, general and administrative expenses 20,844 4,571 4,036 Research and development expenses 4,602 2,366 2,372 Stock-based compensation expense included in operating expenses 25,446 6,937 6,408 Total stock-based compensation expense 28,322 7,480 6,834 Tax benefit for expense associated with non-qualified stock options, PSUs, RSUs and restricted stock ( 5,152 ) ( 1,849 ) ( 1,629 ) Total stock-based compensation expense, net of tax $ 23,170 $ 5,631 $ 5,205 Stock Incentive Program Descriptions 2020 Stock Incentive Plans At the annual meeting of stockholders held on May 13, 2020, the Company’s stockholders approved, upon recommendation of the Board of Directors, the adoption of the ADTRAN, Inc. 2020 Employee Stock Incentive Plan (the “2020 Employee Plan”) as well as the ADTRAN, Inc. 2020 Directors Stock Plan (the “2020 Directors Plan”), which were assumed by the Company upon consummation of the Merger. No additional awards will be granted under the Company’s previous stock incentive plans, the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (the “2015 Employee Plan”) or the 2010 Directors Stock Plan (the “2010 Directors Plan”) subsequent to the stockholders’ approval of these new stock plans. Outstanding awards granted under the 2015 Employee Plan and the 2010 Directors Plan will remain subject to the terms of such plans, and shares underlying awards granted under such plans that are cancelled or forfeited will be available for issuance under the 2020 Employee Plan or the 2020 Directors Plan, as applicable. Under the 2020 Employee Plan, the Company is authorized to issue 2.8 million shares of common stock to certain employees, key service providers and advisors through incentive stock options and non-qualified stock options, stock appreciation rights, RSUs and restricted stock, any of which may be subject to performance-based conditions. RSUs and restricted stock granted under the 2020 Employee Plan will typically vest pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date. Stock options granted under the 2020 Employee Plan will typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date and have a ten-year contractual term. Stock options, RSUs and restricted stock granted under the 2020 Employee Plan reduce the shares authorized for issuance under the 2020 Employee Plan by one share of common stock for each share underlying the award. Forfeitures, cancellations or expirations of awards granted under the 2015 Employee Plan increase the shares authorized for issuance under the 2020 Employee Plan, with forfeitures, cancellations or expirations of RSUs and restricted stock increasing the shares authorized for issuance by 2.5 shares of common stock for each share underlying the award. Forfeitures, cancellations or expirations of stock options from the 2015 Employee Plan increase the shares authorized for issuance under the 2020 Employee Plan by one share of common stock for each share underlying the award. Under the 2020 Directors Plan, the Company is authorized to issue 0.4 million shares of common stock through stock options, restricted stock and RSUs to non-employee directors. Stock awards issued under the 2020 Directors Plan typically will become vested in full on the first anniversary of the grant date. Stock options issued under the 2020 Directors Plan will have a ten-year contractual term. Stock options, restricted stock and RSUs granted under the 2020 Directors Plan reduce the shares authorized for issuance under the 2020 Directors Plan by one share of common stock for each share underlying the award. Forfeitures, cancellations and expirations of awards granted under the 2010 Directors Stock Plan increase the shares authorized for issuance under the 2020 Directors Plan by one share of common stock for each share underlying the award. Previous Stock Incentive Plans In January 2015, the Board of Directors adopted the 2015 Employee Plan, which authorized 7.7 million shares of common stock for issuance to certain employees and officers through incentive stock options and non-qualified stock options, stock appreciation rights, PSUs, RSUs and restricted stock. The 2015 Employee Plan was adopted by stockholder approval at our annual meeting of stockholders held in May 2015. PSUs, RSUs and restricted stock granted under the 2015 Plan reduce the shares authorized for issuance under the 2015 Employee Plan by 2.5 shares of common stock for each share underlying the award. Options granted under the 2015 Employee Plan typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date and have a ten-year contractual term. Expiration dates of options outstanding as of December 31, 2022 under the 2015 Employee Plan range from 2025 to 2026 . In January 2006, the Board of Directors adopted the ADTRAN, Inc. 2006 Employee Stock Incentive Plan (the “2006 Plan”), which authorized 13.0 million shares of common stock for issuance to officers and certain employees through incentive stock options and non-qualified stock options, stock appreciation rights, RSUs and restricted stock. Options granted under the 2006 Plan typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date and had a ten-year contractual term. The 2006 Plan was replaced in May 2015 by the 2015 Employee Plan. Expiration dates of options outstanding as of December 31, 2022 under the 2006 Plan range from 2022 to 2024 . In May 2010, the Company’s stockholders approved the 2010 Directors Plan, under which 0.5 million shares of common stock have been reserved for issuance. This plan replaced the 2005 Directors Stock Option Plan. Under the 2010 Directors Plan, the Company may issue stock options, restricted stock and RSUs to our non-employee directors. Stock awards issued under the 2010 Directors Plan become vested in full on the first anniversary of the grant date. Options issued under the 2010 Directors Plan had a ten-year contractual term. All remaining options under the 2010 Directors Plan expired in 2019 . PSUs, RSUs and restricted stock - ADTRAN Holdings, Inc. The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2021 and 2022 and the changes that occurred during 2022: Number of Weighted Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2021 1,930 $ 14.11 PSUs, RSUs and restricted stock granted 645 $ 20.56 PSUs, RSUs and restricted stock vested ( 1,440 ) $ 12.81 PSUs, RSUs and restricted stock forfeited ( 49 ) $ 14.22 Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2022 1,086 $ 17.54 The following table details the significant assumptions that impact the fair value estimate of the market-based PSUs: 2022 2021 2020 Estimated fair value per share $ 24.01 $ 26.07 $ 14.43 Expected volatility 45.77 % 53.27 % 51.88 % Risk-free interest rate 4.28 % 0.85 % 0.24 % Expected dividend yield 1.76 % 1.63 % 2.85 % For market-based PSUs, the number of shares of common stock earned by a recipient is subject to a market condition based on ADTRAN’s relative total shareholder return against all companies in the NASDAQ Telecommunications Index at the end of a three-year performance period. Depending on the relative total shareholder return over the performance period, the recipient may earn from 0 % to 150 % of the shares underlying the PSUs, with the shares earned distributed upon the vesting. The fair value of the award is based on the market price of our common stock on the date of grant, adjusted for the expected outcome of the impact of market conditions using a Monte Carlo Simulation valuation method. A portion of the granted PSUs vests and the underlying shares become deliverable upon the death or disability of the recipient or upon a change of control of ADTRAN, as defined by the 2020 Employee Plan. The recipients of the PSUs receive dividend credits based on the shares of common stock underlying the PSUs. The dividend credits vest and are earned in the same manner as the PSUs and are paid in cash upon the issuance of common stock for the PSUs. During each of the years ended December, 2022, 2021 and 2020, the Company granted 0.3 million performance-based PSUs to its executive officers and certain employees. The grant-date fair value of these performance-based awards was based on the closing price of the Company’s stock on the date of grant. These awards vest over one-year , two-year and three-year periods, respectively, subject to the grantee’s continued employment, with the ability to earn shares in a range of 0 % to 142.8 % of the awarded number of PSUs based on the achievement of defined performance targets. Equity-based compensation expense with respect to these awards may be adjusted over the vesting period to reflect the probability of achievement of performance targets defined in the award agreements. Pursuant to the Business Combination, the unearned performance-based PSUs converted to time-based RSUs which were treated as an award modification during the third quarter of 2022. This resulted in incremental compensation expense totaling $ 17.8 million being recognized during the twelve months ended December 31, 2022. These awards were fully vested as of December 31, 2022. Pursuant to the Business Combination, 0.3 million shares of market-based PSU awards converted to time-based RSU's awards which were treated as an award modification during the third quarter of 2022. Given that the fair value of these awards after the modification was less than the fair value of the awards immediately before the modification, no incremental compensation expense was recognized. The Company continued to recognize compensation expense based on the award's original grant date fair value. As of December 31, 2022, there was $ 1.4 million of unrecognized compensation expense related to these awards which will be recognized over the weighted average remaining service period of 1.57 years. The fair value of RSUs and restricted stock is equal to the closing price of our stock on the grant date. RSUs and restricted stock vest ratably over four-year and one-year periods, respectively. We will continue to assess the assumptions and methodologies used to calculate the estimated fair value of stock-based compensation. If circumstances change, and additional data becomes available over time, we may change our assumptions and methodologies, which may materially impact our fair value determination. As of December 31, 2022 , total unrecognized compensation expense related to the non-vested portion of market-based PSUs, RSUs and restricted stock was approximately $ 15.8 million, which is expected to be recognized over an average remaining recognition period of 2.25 years and will be adjusted for actual forfeitures as they occur. As of December 31, 2022 , 3.3 million shares were available for issuance under shareholder-approved equity plans in connection with the grant and exercise of stock options, PSU’s, RSU’s or restricted stock. Stock Options - ADTRAN Holdings, Inc. The following table is a summary of stock options outstanding as of December 31, 2022 and 2021 and the changes that occurred during 2022: Number of (In thousands) Weighted (Per share) Weighted Avg. Aggregate Value (In thousands) Stock options outstanding, December 31, 2021 1,721 $ 19.37 2.39 $ 6,669 ADVA stock options replaced by ADTRAN Holdings stock options (1) 2,094 $ 11.12 Stock options exercised ( 519 ) $ 15.70 Stock options forfeited ( 10 ) $ 10.28 Stock options expired ( 138 ) $ 22.73 Stock options outstanding, December 31, 2022 3,148 $ 14.37 3.42 $ 16,251 Stock options exercisable, December 31, 2022 1,711 $ 15.95 1.95 $ 7,104 (1) Each ADVA stock option surrendered was exchanged for 0.8244 ADTRAN Holdings stock options. As of December 31, 2022, there was $ 8.3 million of unrecognized compensation expense related to stock options which will be recognized over the remaining weighted-average period of 2.4 years. Pursuant to the Business Combination, which closed on July 15, 2022, ADVA stock option holders were entitled to have their ADVA stock options assumed by ADTRAN Holdings (applying the exchange ratio in the Business Combination Agreement), thereafter representing options to acquire stock of ADTRAN Holdings. The maximum number of shares of ADTRAN Holdings stock potentially issuable upon such assumption was 2.3 million shares. The period in which such options could be assumed ended July 22, 2022. A total of 2.1 million shares of ADTRAN Holdings stock are subject to assumed ADVA options. The determination of the fair value of stock options assumed by ADTRAN Holdings was estimated using the Monte Carlo method and is affected by its stock price, as well as assumptions regarding a number of complex and subjective variables that may have a significant impact on the fair value estimate. The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of the Company's stock price and employee exercise behaviors. All of the options were previously issued at exercise prices that approximated fair market value at the date of grant. The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the difference between ADTRAN’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2022. The amount of aggregate intrinsic value was $ 16.3 million as of December 31, 2022 and will change based on the fair market value of ADTRAN’s stock. The total pre-tax intrinsic value of options exercised during the year ended December 31, 2022 was $ 4.0 million. The following table further describes our stock options outstanding as of December 31, 2022: Options Outstanding Options Exercisable Range of Options (In thousands) Weighted Avg. Weighted Options (In thousands) Weighted $ 6.06 – $ 8.67 755 3.21 $ 7.37 320 $ 6.47 $ 8.68 – $ 13.74 833 4.65 $ 11.45 207 $ 9.63 $ 13.75 – $ 17.15 427 3.27 $ 15.33 368 $ 15.33 $ 17.16 – $ 21.36 679 3.92 $ 19.02 369 $ 18.97 $ 21.37 – $ 23.64 454 0.83 $ 23.64 447 $ 23.64 3,148 1,711 The Black-Scholes option pricing model (the “Black-Scholes Model”) is used to determine the estimated fair value of stock option awards on the date of grant. The Black-Scholes Model requires the input of certain assumptions that involve judgment. Because our stock options have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, existing models may not provide reliable measures of fair value of our stock options. The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of our stock price and employee exercise behaviors. The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of our stock price and employee exercise behaviors. The weighted-average estimated fair value of stock options granted to employees during the year ended December 31,2022 was $ 5.81 per share with the following weighted-average assumptions: 2022 Expected volatility 45.00 % Risk-free interest rate 3.00 % Expected dividend yield 1.77 % Expected life (in years) 2.4 There were no stock options granted in during the years ended December 31, 2021 and 2020. Stock Options - ADVA Optical Networking SE The following table summarizes ADVA Optical Networking SE stock options outstanding as of July 15, 2022 (the Business Combination closing date) and December 31, 2022 and the changes that occurred between July 15, 2022 and December 31, 2022: Number of (In thousands) Weighted (Per share) Weighted Avg. Aggregate Value (In thousands) Stock options outstanding, July 15, 2022 2,745 $ 9.09 4.60 $ 27,205 Stock options exercised ( 102 ) $ 8.02 ADVA stock options replaced by ADTRAN Holdings stock options (1) ( 2,550 ) $ 9.80 Stock options forfeited ( 12 ) $ 9.57 Stock options outstanding, December 31, 2022 81 $ 8.58 4.00 $ 1,222 Stock options exercisable, December 31, 2022 27 $ 7.37 2.39 $ 432 (1) Each ADVA stock option surrendered was exchanged for 0.8244 ADTRAN Holdings stock options. As of December 31, 2022, there was $ 0.1 million of unrecognized compensation expense related to stock options which will be recognized over the remaining weighted-average period of 1.17 years. All of the options were previously issued at exercise prices that approximated fair market value at the date of grant. The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the difference between ADVA's closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2022. The amount of aggregate intrinsic value was $ 1.2 million as of December 31, 2022 and will change based on the fair market value of ADVA's stock. The total pre-tax intrinsic value of options exercised during the period July 15, 2022 through December 31, 2022 was $ 1.6 million. The following table further describes ADVA's stock options outstanding as of December 31, 2022: Options Outstanding Options Exercisable Range of Options (In thousands) Weighted Avg. Weighted Options (In thousands) Weighted € 4.98 - € 7.05 35 3.52 $ 6.97 9 $ 5.34 € 7.06 - € 8.70 18 2.60 $ 8.41 18 $ 8.41 € 8.71 - € 15.68 28 5.48 $ 10.73 — $ — 81 27 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 6 – Investments Debt Securities and Other Investments As of December 31, 2022, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value: Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value Corporate bonds $ 2,538 $ 5 $ ( 81 ) $ 2,462 Municipal fixed-rate bonds 185 ( 5 ) 180 Asset-backed bonds 818 1 ( 24 ) 795 Mortgage/Agency-backed bonds 1,853 ( 105 ) 1,748 U.S. government bonds 3,870 3 ( 188 ) 3,685 Foreign government bonds 407 ( 24 ) 383 Available-for-sale debt securities held at fair value $ 9,671 $ 9 $ ( 427 ) $ 9,253 As of December 31, 2021, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value: Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value Corporate bonds $ 10,776 $ 6 $ ( 35 ) $ 10,747 Municipal fixed-rate bonds 1,553 2 ( 4 ) 1,551 Asset-backed bonds 322 3 ( 3 ) 322 Mortgage/Agency-backed bonds 4,754 15 ( 33 ) 4,736 U.S. government bonds 12,251 12 ( 92 ) 12,171 Foreign government bonds 543 — ( 4 ) 539 Available-for-sale debt securities held at fair value $ 30,199 $ 38 $ ( 171 ) $ 30,066 As of December 31, 2022, our debt securities had the following contractual maturities: (In thousands) Corporate Municipal Asset-backed Mortgage / U.S. Foreign Less than one year $ — $ 180 $ — $ — $ 160 $ — One to two years 1,450 — 96 162 2,787 276 Two to three years 1,012 — 186 598 617 107 Three to five years — — 335 253 121 — Five to ten years — — — 317 — — More than ten years — — 178 418 — — Total $ 2,462 $ 180 $ 795 $ 1,748 $ 3,685 $ 383 Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains and losses on sales of securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2022, 2021 and 2020: For the year ended December 31, (In thousands) 2022 2021 2020 Gross realized gains on debt securities $ 17 $ 241 $ 459 Gross realized losses on debt securities ( 1,211 ) ( 159 ) ( 58 ) Total (loss) gain recognized, net $ ( 1,194 ) $ 82 $ 401 The Company’s investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5 % of the market value of the total investment portfolio. The Company did no t purchase any available-for-sale debt with credit deterioration during the years ended December 31, 2022, 2021 and 2020. The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2022: Continuous Unrealized Continuous Unrealized Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 1,367 $ ( 39 ) $ 583 $ ( 42 ) $ 1,950 $ ( 81 ) Municipal fixed-rate bonds — — 178 ( 5 ) 180 ( 5 ) Asset-backed bonds 524 ( 14 ) 117 ( 10 ) 641 ( 24 ) Mortgage/Agency-backed bonds 825 ( 23 ) 844 ( 82 ) 1,668 ( 105 ) U.S. government bonds 2,215 ( 106 ) 1,063 ( 82 ) 3,278 ( 188 ) Foreign government bonds — — 383 ( 24 ) 383 ( 24 ) Total $ 4,931 $ ( 182 ) $ 3,168 $ ( 245 ) $ 8,100 $ ( 427 ) The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2021: Continuous Unrealized Continuous Unrealized Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 6,795 $ ( 35 ) $ — $ — $ 6,795 $ ( 35 ) Municipal fixed-rate bonds 1,129 ( 4 ) — — 1,129 ( 4 ) Asset-backed bonds 198 ( 3 ) — — 198 ( 3 ) Mortgage/Agency-backed bonds 3,006 ( 33 ) — — 3,006 ( 33 ) U.S. government bonds 10,552 ( 92 ) — — 10,552 ( 92 ) Foreign government bonds 294 ( 4 ) — — 294 ( 4 ) Total $ 21,974 $ ( 171 ) $ — $ — $ 21,974 $ ( 171 ) The increase in unrealized losses during 2022 resulted from changes in market positions associated with our fixed income portfolio. Marketable Equity Securities Marketable equity securities consist of publicly traded stock, funds and certain other investments measured at fair value or cost, where appropriate. Re alized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2022, 2021 and 2020 were as follows: For the year ended December 31, (In thousands) 2022 2021 2019 Realized losses on equity securities sold $ ( 1,675 ) $ ( 992 ) $ ( 2,382 ) Unrealized (losses) gains on equity securities held ( 8,470 ) 2,671 6,831 Total (loss) gain recognized, net $ ( 10,145 ) $ 1,679 $ 4,449 As of December 31, 2022 and 2021, gross unrealized losses related to individual investments in a continuous loss position for twelve months or longer were not material. U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments: • Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market; • Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; • Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement; inputs could include information supplied by investees. The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows: Fair Value Measurements as of December 31, 2022 Using (In thousands) Fair Value Quoted Prices Significant Significant Unobservable Inputs Cash equivalents Money market funds $ 228 $ 228 $ — Available-for-sale debt securities Corporate bonds 2,462 2,462 — Municipal fixed-rate bonds 180 180 — Asset-backed bonds 795 795 — Mortgage/Agency-backed bonds 1,748 1,748 — U.S. government bonds 3,685 3,685 — Foreign government bonds 383 383 — Marketable equity securities Marketable equity securities - various industries 804 804 — Deferred compensation plan assets 22,942 22,942 — Total $ 33,227 $ 27,659 $ 5,568 $ — Fair Value Measurements as of December 31, 2021 Using (In thousands) Fair Value Quoted Prices Significant Significant Unobservable Inputs Cash equivalents Money market funds $ 652 $ 652 $ — $ — Available-for-sale debt securities Corporate bonds 10,747 — 10,747 — Municipal fixed-rate bonds 1,551 — 1,551 — Asset-backed bonds 322 — 322 — Mortgage/Agency-backed bonds 4,736 — 4,736 — U.S. government bonds 12,171 12,171 — — Foreign government bonds 539 — 539 — Marketable equity securities Marketable equity securities - various industries 12,606 12,606 — — Deferred compensation plan assets 26,935 26,935 — — Total $ 70,259 $ 52,364 $ 17,895 $ — The fair value of our Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, large financial institutions and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security. The fair value of Level 3 securities is calculated based on unobservable inputs. Quantitative information with respect to unobservable inputs consisted of third-party valuations performed in accordance with ASC 820 – Fair Value Measurement. Inputs used in preparing the third-party valuation included the following assumptions, among others: estimated discount rates and fair market yields. Our variable rate demand notes have a structure that implies a standard expected market price. The frequent interest rate resets make it reasonable to expect the price to stay at par. These securities are priced at the expected market price. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 7 – Inventory As of December 31, 2022 and 2021, inventory, net was comprised of the following: (In thousands) 2022 2021 Raw materials $ 186,346 $ 74,709 Work in process 12,087 2,143 Finished goods 229,098 63,039 Total Inventory, net $ 427,531 $ 139,891 Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which consider historical usage, known trends, inventory age and market conditions. As of December 31, 2022 and 2021, our inventory reserve was $ 57.0 million and $ 44.6 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 8 – Property, Plant and Equipment As of December 31, 2022 and 2021, property, plant and equipment, net was comprised of the following: (In thousands) 2022 2021 Engineering and other equipment $ 170,785 $ 134,771 Building 82,932 68,157 Computer hardware and software 80,455 72,274 Building and land improvements 47,861 35,578 Furniture and fixtures 22,403 19,917 Land 5,364 4,575 Total Property, Plant and Equipment 409,800 335,272 Less: accumulated depreciation ( 299,101 ) ( 279,506 ) Total Property, Plant and Equipment, net $ 110,699 $ 55,766 Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs. As a result, the Company recognized impairment charges of $ 0.5 million during the year ended December 31, 2022 related to software and web site development. The impairment charges were determined based on actual costs incurred. During the year ended December 31, 2021, no impairment charges were recognized. During the year ended December 31, 2020, the Company recognized impairment charges of $ 0.1 million. Depreciation expense was $ 20.9 million, $ 12.0 million and $ 12.2 million for the years ended December 31, 2022, 2021 and 2020 , respectively, which is recorded in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of (Loss) Income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 9 – Leases We have operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. As of December 31, 2022 , our operating leases had remaining lease terms of one month to 119 months , some of which included options to extend the leases for up to five years , and some of which included options to terminate the leases within three months . Supplemental balance sheet information related to operating leases is as follows: December 31, December 31, (In thousands) Classification 2022 2021 Assets Operating lease assets Other non-current assets $ 30,340 $ 4,922 Total lease asset $ 30,340 $ 4,922 Liabilities Current operating lease liability Accrued expenses and other liabilities $ 7,596 $ 1,730 Non-current operating lease liability Other non-current liabilities 22,807 3,269 Total lease liability $ 30,403 $ 4,999 Lease expense related to short-term leases was less than $ 0.1 million for the twelve months ended December 31, 2022, 2021 and 2020, and is included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of (Loss) Income. Lease expense related to variable lease payments that do not depend on an index or rate, such as real estate taxes and insurance reimbursements, was $ 0.6 million, $ 0.5 million and $ 0.7 million for the twelve months ended December 31, 2022, 2021 and 2020, respectively. The components of lease expense included in the Consolidated Statements of (Loss) Income were as follows: For the Year Ended December 31, (In thousands) 2022 2021 2020 Cost of revenue $ 110 $ 51 $ 113 Research and development expenses 942 1,071 1,121 Selling, general and administrative expenses 3,961 883 1,311 Total operating lease expense $ 5,013 $ 2,005 $ 2,545 As of December 31, 2022, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows: (In thousands) Amount 2023 8,992 2024 8,076 2025 6,740 2026 3,825 2027 2,865 Thereafter 4,478 Total lease payments 34,976 Less: Interest ( 4,573 ) Present value of lease liabilities $ 30,403 Future operating lease payments include $ 4.4 million related to options to extend lease terms that are reasonably certain of being exercised. There are no legally binding leases that have not yet commenced. An incremental borrowing rate is used based on information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is determined on a portfolio basis by grouping leases with similar terms, as well as grouping leases based on a U.S. dollar or Euro functional currency. The following table provides information about our weighted average lease terms and weighted average discount rates: As of December 31, Weighted average remaining lease term (years) 2022 2021 Operating leases with USD functional currency 7.9 1.8 Operating leases with Euro functional currency 4.2 3.5 Weighted average discount rate Operating leases with USD functional currency 3.77 % 3.49 % Operating leases with Euro functional currency 3.70 % 1.22 % |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill Disclosure [Abstract] | |
Goodwill | Note 10 – Goodwill The changes in the carrying amount of goodwill for the year ended December 31, 2022 are as follows: (In thousands) Network Solutions Services & Support Total As of December 31, 2021 $ 6,570 $ 398 $ 6,968 Goodwill from Business Combination with ADVA 272,797 77,661 350,458 Foreign currency translation adjustments 18,913 5,385 24,298 As of December 31, 2022 $ 298,280 $ 83,444 $ 381,724 Our general policy is to qualitatively assess the carrying value of goodwill each reporting period for events or changes in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Related to the Business Combination with ADVA the Company recognized $ 350.5 million of goodwill upon the merger on July 15, 2022. Therefore, we decided to proceed directly to the quantitative test of goodwill and forego the qualitative assessment. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. We also estimate the fair value of our reporting units based on a peer group analysis, whereby companies in the telecommunications industry or with a comparable product and market structure are used to calculate a fair enterprise value using revenue, EBITDA and debt multiples of trading value. Based on our analysis, management concluded that there was no impairment of goodwill as of December 31, 2022. No impairment charges on goodwill were recognized during the years ended December 31, 2021 and 2020. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Note 11 – Intangible Assets Intangible assets as of December 31, 2022 and 2021, consisted of the following: 2022 2021 (In thousands) Weighted Average Useful Life Gross Value Accumulated Net Value Gross Value Accumulated Net Value Customer relationships 10.9 $ 55,517 $ ( 12,772 ) $ 42,745 $ 20,796 $ ( 9,906 ) $ 10,890 Backlog 1.6 55,782 ( 22,725 ) 33,057 — — — Developed technology 8.5 320,364 ( 21,856 ) 298,508 8,200 ( 3,683 ) 4,517 Licensed technology 9.0 5,900 ( 3,141 ) 2,759 5,900 ( 2,486 ) 3,414 Licensing agreements 8.5 560 ( 298 ) 262 560 ( 225 ) 335 Patents 7.3 500 ( 431 ) 69 500 ( 363 ) 137 Trade names 3.0 29,066 ( 5,255 ) 23,811 210 ( 210 ) — Total $ 467,689 $ ( 66,478 ) $ 401,211 $ 36,166 $ ( 16,873 ) $ 19,293 As part of the purchase price allocation related to the Business Combination with ADVA, the Company recognized $ 403.8 million of intangible assets on July 15, 2022. Intangible assets are reviewed for impairment whenever events and circumstances indicate impairment may have occurred. T he Company assessed impairment triggers related to intangible assets during each financial period in 2022, 2021 and 2020. As a result, no quantitative impairment test of long-lived assets was performed as of December 31, 2022, 2021 and 2020, and no impairment losses of intangible assets were recorded during the years ended December 31, 2022, 2021 and 2020. Amortization expense was $ 47.3 million, $ 4.1 million and $ 4.4 million for the years ended December 31, 2022, 2021 and 2020, respectively, and was included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of (Loss) Income. As of December 31, 2022, estimated future amortization expense of intangible assets was as follows: (In thousands) Amount 2023 $ 82,080 2024 57,545 2025 46,095 2026 42,851 2027 41,491 Thereafter 131,149 Total $ 401,211 |
Hedging
Hedging | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging | Note 12 - Hedging The Company has certain forward rate agreements to hedge foreign currency exposure of expected future cash flows in foreign currency. The Company does not hold or issue derivative instruments for trading or other speculative purposes. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. All changes in the fair value of derivative instruments are recognized as other income (expense) in the Consolidated Statements of Income. The derivative instruments are not subject to master netting agreements and are not offset in the Consolidated Balance Sheets. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. 47 forward rate contracts outstanding. Foreign Currency Hedging Agreement On November 3, 2022, the Company entered into a Euro/U.S. dollar cross-currency swap arrangement (the “Swap”) with Wells Fargo Bank, N.A. (the “Hedge Counterparty”). The Swap, which is governed by the provisions of an ISDA Master Agreement (including schedules thereto and transaction confirmations that supplement such agreement) entered into between the Company and the Hedge Counterparty, enable the Company to convert a portion of its Euro denominated payment obligations under the proposed DPLTA into U.S. Dollars. Under the Swap, the Company will exchange an aggregate notional amount of $ 160.0 million U.S. dollars for Euros at a daily fixed forward rate ranging from $ 0.98286 to $ 1.03290 . The aggregate amount of $ 160.0 million will be divided into eight quarterly tranches of $ 20.0 million. The Company, at its sole discretion, may exchange all or part of each tranche on any given day within the applicable quarter; provided, however, that it must exchange the full tranche by the end of such quarter. The Swap may be accelerated or terminated early for a number of reasons, including but not limited to (i) non-payment by the Company or the Hedge Counterparty, (ii) breach of representation or warranty or covenant by either party or (iii) insolvency or bankruptcy of either party. The fair values of the Company's derivative instruments recorded in the Condensed Consolidated Balance Sheet as of December 31, 2022 were as follows: (In thousands) Balance Sheet Location December 31, 2022 December 31, 2021 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – derivative assets Other receivables $ 11,992 $ — Foreign exchange contracts – derivative liabilities Accounts payable $ ( 633 ) $ — Total derivatives $ 11,359 $ — The change in the fair values of the Company's derivative instruments recorded in the Condensed Consolidated Statements of Income during the years ended December 31, 2022, 2021 and 2020 were as follows: (In thousands) Income Statement 2022 2021 2020 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense), net $ 10,793 $ — $ — |
Revolving Credit Agreements
Revolving Credit Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Credit Agreement | Note 13 – Revolving Credit Agreements The carrying amounts of the Company's revolving credit agreements in its Consolidated Balance Sheets were as follows: As of December 31, (In thousands) 2022 2021 Wells Fargo credit agreement $ 60,000 $ — Nord/LB revolving line of credit 16,091 — Syndicated credit agreement working capital line of credit 10,727 — DZ bank revolving line of credit 9,118 — Wells Fargo revolving credit agreement — — Cadence revolving credit agreement — — Total revolving credit agreements $ 95,936 $ — As of December 31, 2022, the weighted average interest rate on our revolving credit agreements was 4.12 %. Wells Fargo Credit Agreement On July 18, 2022, ADTRAN Holdings, Inc. and ADTRAN, Inc., as the borrower, entered into a credit agreement with a syndicate of banks, including Wells Fargo Bank, National Association, as administrative agent (“Administrative Agent”), and the other lenders named therein (the “Credit Agreement”). The Credit Agreement allows for borrowings of up to $ 100.0 million in aggregate principal amount, subject to being increased to up to $ 400.0 million in aggregate principal amount upon the Company or Borrower’s execution of a DPLTA with ADVA or a parent of ADVA, among other conditions (the “Senior Credit Facilities Increase”). The DPLTA as executed on December 1, 2022, became effective on January 16, 2023, as a result of its registration with the commercial register ( Handelsregister ) of the local court ( Amtsgericht ) at the registered seat of ADVA (Jena). See Note 24 of the Notes to Consolidated Financial Statements for further information. The Credit Agreement replaced the Cadence Revolving Credit Agreement and the Wells Fargo Revolving Credit Agreement. In connection with the entry into the Credit Agreement, all outstanding borrowings under such credit agreements have been repaid and the agreements terminated. As of December 31, 2022, ADTRAN, Inc.’s borrowings under the revolving line of credit were $ 60.0 million in tranches that mature during the first quarter of 2023 and can either be repaid or borrowed again for a one month, three month or six month period. In addition, we may issue up to $ 25.0 million in letters of credit against our $ 100.0 million dollar total facility. As of December 31, 2022, we had a total of $ 21.3 million in letters of credit with ADTRAN, Inc. outstanding against our eligible borrowings, leaving a net amount of $ 18.7 million available for future borrowings. In February 2023, the borrowings under the Credit Agreement were paid down by $ 7.5 million, leaving, $ 180.0 million of borrowings as of February 28, 2023. After considering our outstanding letters of credit, this leaves the Company approximately $ 198.7 million available for future borrowings as of February 28, 2023. Any future credit extensions under the Credit Agreement are subject to customary conditions precedent. The proceeds of any loans are expected to be used for general corporate purposes and to pay a portion of the Exchange Offer consideration. All U.S. borrowings under the Credit Agreement (other than swingline loans, which will bear interest at the Base Rate (as defined below)) will bear interest, at the Company’s option, at a rate per annum equal to (A)(i) the highest of (a) the federal funds rate (i.e., for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus ½ of 1 %, (b) the prime commercial lending rate of the Administrative Agent, as established from time to time at its principal U.S. office (which such rate is an index or base rate and will not necessarily be its lowest or best rate charged to its customers or other banks), and (c) the daily Adjusted Term SOFR (as defined in the Credit Agreement) for a one-month tenor plus 1 %, plus (ii) the applicable rate, ranging from 0.5 % to 1.25 % (the “Base Rate”), or (B) the sum of the Adjusted Term SOFR (as defined in the Credit Agreement) plus the applicable rate, ranging from 1.4 % to 2.15 %, provided that such sum is subject to a 0.0 % floor (such loans utilizing this interest rate, “SOFR Loans”). All EU borrowings under the Credit Agreement (other than swingline loans) will bear interest at a rate per annum equal to the sum of the Euro Interbank Offered Rate as administered by the European Money Markets Institute (or a comparable or successor administrator approved by the Administrative Agent) plus the applicable rate, ranging from 1.5 % to 2.25 %, provided that such sum is subject to a 0.0 % floor (such loans utilizing this interest rate, “EURIBOR Loans”). The applicable rate is based on the consolidated net leverage ratio of the Company and its subsidiaries as determined pursuant to the terms of the Credit Agreement. Default interest is 2.00 % per annum in excess of the rate otherwise applicable in the case of any overdue principal or any other overdue amount. In addition to paying interest on outstanding principal under the Credit Agreement, the Company is required to pay a commitment fee to the lenders under the Credit Agreement in respect of unutilized revolving loan commitments and an additional commitment ticking fee at a rate of 0.25 % on the commitment amounts of each lender until the earliest of (i) the date of the Senior Credit Facilities Increase, (ii) the Company’s voluntary termination of the credit facility commitment, and (iii) December 31, 2023. The Company is also required to pay a participation fee to the Administrative Agent for the account of each lender with respect to the Company’s participations in letters of credit at the then applicable rate for SOFR Loans. The Credit Agreement permits the Company to prepay any or all of the outstanding loans or to reduce the commitments under the Credit Agreement without incurring premiums or penalties (except breakage costs with respect to SOFR Loans and EURIBOR Loans). The Credit Agreement contains customary affirmative and negative covenants, including incurrence covenants and certain other limitations on the ability of the Company and the Company’s subsidiaries to incur additional debt, guarantee other obligations, grant liens on assets, make investments, dispose of assets, pay dividends or other payments on capital stock, make restricted payments, engage in mergers or consolidations, engage in transactions with affiliates, modify its organizational documents, and enter into certain restrictive agreements. It also contains customary events of default (subject to customary cure periods and materiality thresholds). Furthermore, the Credit Agreement requires that the consolidated total net leverage ratio (as defined in the Credit Agreement) of the Company and its subsidiaries tested on the last day of each fiscal quarter not exceed 3.25 to 1.0 through September 30, 2024 and 2.75 to 1.00 from December 31, 2024 and thereafter, subject to certain exceptions. The Credit Agreement also requires that the consolidated interest coverage ratio (as defined in the Credit Agreement) of the Company and its subsidiaries tested on the last day of each fiscal quarter not fall below 3.00 to 1.00. As of December 31, 2022, the Company was in compliance with all material covenants. The Credit Agreement matures in July 2027 but provides the Company with an option to request extensions subject to customary conditions. Finally, pursuant to a Collateral Agreement, dated as of July 18, 2022, among the Company, ADTRAN, Inc. and the Administrative Agent, ADTRAN, Inc.’s obligations under the Credit Agreement are secured by substantially all of the assets of ADTRAN, Inc. and the Company. In addition, the Company has guaranteed ADTRAN, Inc.’s obligations under the Credit Agreement pursuant to a Guaranty Agreement, dated as of July 18, 2022, by ADTRAN, Inc. and the Company in favor of the Administrative Agent. Nord/LB Revolving Line of Credit On August 8, 2022, ADVA entered into a $ 16.1 million revolving line of credit with Norddeutsche Landesbark - Girozentrale (Nord/LB) that bears interest of Euro Short Term Rate plus 1.4 % and which matures in August 2023 . During the term of the loan, ADVA is obligated to maintain an adjusted net debt to cover ratio that is equal to or less than 2.75 . As of December 31, 2022, The Company was in compliance with the adjusted net debt to cover ratio. As of December 31, 2022, ADVA’s borrowings under the revolving line of credit were $ 16.1 million, with no amounts available for future borrowings. On January 31, 2023, the Company increased its borrowings under the Wells Fargo Credit Agreement. A portion of the proceeds from the borrowings were used to retire the outstanding borrowings under the Nord/LB revolving line of credit. Syndicated Credit Agreement Working Capital Line of Credit In September 2018, ADVA entered into a syndicated credit agreement wit h Bayerische Landesbank and Deutsche Bank AG Branch German Business to borrow up to $ 10.7 million as part of a working capital line of credit. The interest rate for the working capital line of credit is adjusted periodically based on a defined leverage ratio and is currently EURIBOR plus 1.35 % as of December 31, 2022. The working capital line of credit matures in September 2023. As of December 31, 2022, borrowings under the working capital line of credit totaled $ 10.7 million, with no amounts available for future borrowings. On January 31, 2023, the Company increased its borrowings under the Wells Fargo Credit Agreement. A portion of the proceeds from the borrowings were used to retire the outstanding borrowings under the syndicated credit agreement working capital line of credit. DZ Bank Money Market Facility As of December 31, 2022, ADVA’s borrowings under the revolving line of credit totaled $ 9.1 million, with no amounts available for future borrowings. The interest rate is currently a rate of 2.8 %, which resets monthly based on renewal of the loan. Prior Wells Fargo Revolving Credit Agreement On April 1, 2022, ADTRAN, Inc. entered into a Credit Agreement and related Revolving Line of Credit Note (together, the “Prior Wells Revolving Credit Agreement”) in favor of Wells Fargo Bank, National Association, as lender (the “Wells Lender”). The Wells Revolving Credit Agreement provided the Company with a $ 25.0 million secured revolving credit facility. During the year ended December 31, 2022, the Company made draws totaling $ 10.0 million under the Prior Wells Revolving Credit Agreement all of which had been repaid as of December 31, 2022. The Wells Fargo Credit Agreement replaced the Prior Wells Fargo Revolving Credit Agreement and all outstanding borrowings have been repaid and the prior agreement was terminated. Prior Cadence Revolving Credit Agreement On May 19, 2022, ADTRAN, Inc., as borrower, modified its Revolving Credit and Security Agreement and related Promissory Note (together, the “Cadence Revolving Credit Agreement”) with Cadence Bank, N.A., as lender (the “Cadence Lender”). The modified Prior Cadence Revolving Credit Agreement provided the Company with a $ 25.0 million secured revolving credit facility. During the year ended December 31, 2022, the Company made draws totaling $ 18.0 million under the Prior Cadence Revolving Credit Agreement all of which had been repaid as of December 31, 2022. The Wells Fargo Credit Agreement replaced the Prior Cadence Revolving Credit Agreement and all outstanding borrowings have been repaid and the prior agreement was terminated. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 14 – Notes Payable The carrying amounts of the Company's notes payable in its Condensed Consolidated Balance Sheets were as follows: Fair Value as of Carrying Value as of Carrying Value as of (In thousands) December 31, 2022 December 31, 2022 December 31, 2021 Syndicated credit agreement note payable $ 24,598 $ 24,598 $ — Deutsche Bank term loan — — — Total Notes Payable $ 24,598 $ 24,598 $ — Syndicated Credit Agreement Note Payable In September 2018, ADVA entered into a syndicated credit agreement with Bayerische Landesbank and Deutsche Bank AG Branch German Business to borrow $ 63.7 million. As of December 31, 2022, the amount outstanding under the note payable is $ 24.6 million. The interest rate for the note payable is adjusted periodically based on a defined leverage ratio and is currently 2.49 % as of December 31, 2022. The note payable matures in September 2023. Deutsche Bank Term Loan In October 2019, ADVA entered into a $ 9.8 million term loan with Deutsche Bank that bears interest of EURIBOR plus 1.1 %. The term loan matured in September 2022 and was repaid as of December 31, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15 – Income Taxes The components of income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 are as follows: (In thousands) 2022 2021 2020 Current Federal $ 4,572 $ 11 $ ( 10,574 ) State 88 ( 63 ) ( 329 ) International ( 4,347 ) 4,166 3,635 Total Current 313 4,114 ( 7,268 ) Deferred Federal ( 47,429 ) — — State ( 6,776 ) — — International ( 8,183 ) ( 1,784 ) ( 1,356 ) Total Deferred ( 62,388 ) ( 1,784 ) ( 1,356 ) Total Income Tax (Benefit) Expense $ ( 62,075 ) $ 2,330 $ ( 8,624 ) The effective income tax rate differs from the federal statutory rate due to the following: 2022 2021 2020 Tax provision computed at the federal statutory rate 21.00 % 21.00 % 21.00 % State income tax provision, net of federal benefit 2.60 13.33 11.10 Federal research credits 6.74 53.77 57.63 Foreign taxes 6.29 ( 4.69 ) ( 17.83 ) Tax-exempt income 0.21 3.75 1.93 Change in valuation allowance 63.92 ( 75.26 ) 44.79 Non-deductible transaction costs ( 2.74 ) ( 39.48 ) — Foreign tax credits ( 0.40 ) 0.14 17.90 Stock-based compensation ( 2.09 ) 10.74 ( 23.36 ) Withholding taxes 0.03 0.14 ( 20.83 ) Alabama law change — ( 25.39 ) — Impact of CARES Act — — 45.65 Return to accrual 0.24 9.48 — Global intangible low-taxed income ("GILTI") ( 8.08 ) ( 4.29 ) ( 0.49 ) Other, net ( 0.24 ) ( 0.19 ) 0.56 Effective Tax Rate 87.48 % ( 36.95 )% 138.05 % (Loss) income before expense (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 U.S. entities $ ( 33,720 ) $ ( 14,982 ) $ ( 12,833 ) International entities ( 37,243 ) 8,677 6,587 Total $ ( 70,963 ) $ ( 6,305 ) $ ( 6,246 ) (Loss) income before expense (benefit) for income taxes for international entities reflects (loss) income based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenue, which occurs from our U.S. entity. Deferred income taxes on t he Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2022 and 2021 consist of the following: (In thousands) 2022 2021 Deferred tax assets: Inventory $ 5,818 $ 9,538 Accrued expenses 7,865 3,851 Deferred compensation 5,792 7,027 Stock-based compensation 1,373 1,469 Uncertain tax positions related to state taxes and related interest 102 124 Pensions 5,952 6,061 Foreign losses 4,744 2,862 State losses and credit carry-forwards 3,516 5,914 Federal loss and research carry-forwards 64,995 21,606 Lease liabilities 4,093 1,471 Capitalized research and development expenditures 31,248 9,349 Investments 160 — Valuation allowance ( 5,201 ) ( 50,564 ) Total Deferred Tax Assets 130,457 18,708 Deferred tax liabilities: Property, plant and equipment ( 8,982 ) ( 3,590 ) Intellectual property ( 108,671 ) ( 3,230 ) Right of use lease assets ( 6,594 ) ( 1,459 ) Investments — ( 1,350 ) Total Deferred Tax Liabilities ( 124,247 ) ( 9,629 ) Net Deferred Tax Assets $ 6,210 $ 9,079 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Subsequently, the Internal Revenue Service (“IRS”) released its final GILTI regulations on July 9, 2020. The passage of the CARES Act and subsequent issuance of the GILTI final regulations together resulted in the Company’s recognition of a tax benefit in the amount of $ 10.8 million during 2020, $ 7.9 million of which related to the utilization of deferred tax assets which had previously been offset with a valuation allowance and $ 2.9 million primarily related to the tax rate differential on carrying back losses from 2018 and 2019 tax years to prior years in which the U.S. Corporate tax rate was 35 % versus the current 21 % federal tax rate. On February 12, 2021, the Alabama Business Tax Competitiveness Act (the "Act") was signed into law. As a result of the Act, we recognized an expense of $ 1.6 million in the three months ended March 31, 2021 related to the revaluation of our deferred tax assets, which was offset by changes in our valuation allowance previously recorded against our domestic deferred tax assets. During the three months ended September 30, 2021, Management decided to pursue a claim for refund related to the revocation of our IRC Section 59(e) election that was made on our originally filed 2018 U.S. federal tax return. The Company filed a related carryback claim of net operating losses generated in 2018 to prior years as allowed under the CARES Act that was passed in 2020. An IRS Section 59(e) election is generally non-revocable except in cases for which IRS Commissioner’s approval is given. Approval is granted only in rare and unusual circumstances. We filed a private letter ruling (“PLR”) request to revoke our election. During the three months ended December 31, 2021, a response to our PLR was published denying our request to revoke the previously made 59(e). As a result of these filings, and Management’s position to pursue them through appeals, we have established a receivable in the amount of $ 15.2 million and a deferred tax asset related to additional research and development credit carryforward in the amount of $ 1.8 million that would be available if our revocation request is successful, offset with an uncertain tax liability of $ 17.0 million. As of December 31, 2022 and 2021, non-current deferred taxes reflected deferred taxes on net unrealized gains and losses on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, which resulted in a deferred tax expense of $ 2.0 million and $ 1.6 million in 2022 and 2021, respectively, was recorded as an adjustment to other comprehensive (loss) income, presented in the Consolidated Statements of Comprehensive (Loss) Income. The Company continually reviews the adequacy of its valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC 740, Income Taxes. Our assessment of the realizability of our deferred tax assets includes the evaluation of evidence, some of which requires significant judgment, including historical operating results, the evaluation of a three-year cumulative income position, future taxable income projections and tax planning strategies. Should management’s conclusion change in the future and additional valuation allowance or a partial or full release of the valuation allowance become necessary, it could have a material effect on our consolidated financial statements. During the fourth quarter of 2022, after considering all quantitative and qualitative evidence, including our cumulative income position, historical operating performance and future income projections, we have determined that the positive evidence overcame the negative evidence and have concluded that it is more likely than not that a substantial portion of our U.S. federal and certain other state deferred tax assets were realizable. As a result we have released the majority of our valuation allowance against those assets. As of December 31, 2022 and 2021, the Company had gross deferred tax assets totaling $ 11.4 million offset by a valuation allowance totaling $ 5.2 million and gross deferred tax assets totaling $ 59.6 million offset by a valuation allowance of $ 50.6 million, respectively. Of the current valuation allowance, $ 3.2 million was established against our domestic deferred tax assets and the remaining $ 2.0 million is related to foreign net operating loss and research and development credit carryforwards where we lacked sufficient activity to realize those deferred tax assets. The change in our valuation allowance for the year ending December 31, 2022 was a decrease of $ 45.4 million. The change in the valuation allowance was primarily related to the previously mentioned release of the valuation allowance in the fourth quarter of 2022. The large increase during the year in our international deferred tax liabilities was primarily related to purchase price accounting, partially offset with acquired deferred tax assets as a result of the ADVA acquisition, that was completed in the third quarter of 2022. Supplemental balance sheet information related to deferred tax assets (liabilities) as of December 31, 2022 and 2021 were as follows: December 31, 2022 (In thousands) Deferred Tax Assets (Liabilities) Valuation Allowance Deferred Tax Assets (Liabilities), net Domestic $ 61,726 $ ( 3,177 ) $ 58,549 International ( 50,315 ) ( 2,024 ) ( 52,339 ) Total $ 11,411 $ ( 5,201 ) $ 6,210 December 31, 2021 (In thousands) Deferred Tax Assets Valuation Allowance Deferred Tax Assets, net Domestic $ 48,265 $ ( 48,265 ) $ — International 11,378 ( 2,299 ) 9,079 Total $ 59,643 $ ( 50,564 ) $ 9,079 As of December 31, 2022 and 2021, the deferred tax assets for foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development costs and state credit carry-forwards totaled $ 104.5 million and $ 39.7 million, respectively. As of December 31, 2022, $ 21.8 million of these deferred tax assets will expire at various times between 2023 and 2038 . The remaining deferred tax assets will either amortize through 2038 or carryforward indefinitely. As of December 31, 2022 and 2021, respectively, our cash and cash equivalents were $ 108.6 million and $ 56.6 million and short-term investments were $ 0.3 million and $ 0.4 million, which provided available short-term liquidity of $ 108.9 million and 57.0 million. Of these amounts, our foreign subsidiaries held cash of $ 86.3 million and $ 47.7 million, respectively, representing approxim ately 79 % and 84 % of available short-term liquidity, which is used to fund ongoing liquidity needs of these subsidiaries. As part of our restructuring plan, the Company’s assertion on being indefinitely reinvested changed in a particular jurisdiction in a previous year. The Company has a withholding tax liability of $ 0.4 million and $ 0.7 million as of December 31, 2022 and 2021, respectively. The Company maintains its assertion in all other jurisdictions that it is indefinitely reinvesting its funds held in foreign jurisdictions outside of the U.S., except to the extent any of these funds can be repatriated without withholding tax. However, if all of these funds were repatriated to the U.S., or used for U.S. operations, certain amounts could be subject to tax. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the amount of funds subject to unrecognized deferred tax liability. During 2022, 2021 and 2020, no income tax benefit or expense was recorded for stock options exercised as an adjustment to equity. The change in the unrecognized income tax benefits for the years ended December 31, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Balance at beginning of period $ 17,836 $ 1,078 $ 1,487 Increases for tax position related to: Prior years — 17,025 4 Current year 123 136 165 Decreases for tax positions related to: Prior years ( 13 ) ( 27 ) — Expiration of applicable statute of limitations ( 61 ) ( 376 ) ( 578 ) Balance at end of period $ 17,885 $ 17,836 $ 1,078 As of December 31, 2022, 2021 and 2020, our total liability for unrecognized tax benefits was $ 17.9 million, $ 17.8 million and $ 1.1 million, respectively, of which $ 17.9 million, $ 17.8 million and $ 1.0 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2022, 2021 and 2020, the balances of accrued interest and penalties were $ 0.1 million, $ 0.2 million and $ 0.3 million, respectively. We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date, unless a resolution is reached regarding the appeal of our PLR denial noted above. We file income tax returns in the U.S. for federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2018. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 16 – Employee Benefit Plans Pension Benefit Plan We maintain a defined benefit pension plan covering employees in certain foreign countries. In connection with the Business Combination, we acquired $ 29.6 million of additional obligations and $ 22.3 million of assets related to postemployment benefit plans for certain groups of employees at our new operations outside of the U.S. Plans vary depending on the legal, economic, and tax environments of the respective country. For defined benefit plans, accruals for pensions and similar commitments have been included in the results for this year. The new defined benefit plans are for employees in Switzerland, Italy, Israel and India: • In Switzerland, there are two defined benefit pension plans. Both plans provide benefits in the event of retirement, death or disability. The plan's benefits are based on age, years of service, salary and on a participants old age account. The plans are financed by contributions paid by the participants and by the Company. • In Italy, the post-employment benefit plan is required due to statutory provisions. The plan is financed directly by the Company on a pay as you go basis. Employees receive their pension payments as a function of salary, inflation and a notional account. • In Israel, there is a defined benefit pension plan that provides benefits in the event of a participant being dismissed involuntarily, retirement or death. The plan's benefits are based on the higher of the severance benefit required by law or the cash surrender value of the severance benefit component of any qualifying insurance policy or long-term employee benefit fund that is registered in the participants name. The plan is financed by contributions paid by the Company. • In India, the post-employment benefit plan is required due to statutory provisions. The plan is financed directly by the Company on a pay as you go basis. The pension benefit plan obligations and funded status as of December 31, 2022 and 2021, were as follows: (In thousands) 2022 2021 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 73,779 (1) $ 50,927 Service cost 1,426 1,229 Interest cost 1,168 339 Actuarial gain - experience ( 2,039 ) ( 750 ) Actuarial gain - assumptions ( 11,128 ) ( 3,327 ) Benefit payments ( 1,400 ) ( 756 ) Effects of foreign currency exchange rate changes ( 2,462 ) ( 3,498 ) Projected benefit obligation at end of period 59,344 44,164 Change in plan assets: Fair value of plan assets at beginning of period 55,084 (1) 32,263 Actual (loss) gain on plan assets ( 4,372 ) 2,943 Contributions 382 — Effects of foreign currency exchange rate changes ( 2,374 ) ( 2,444 ) Fair value of plan assets at end of period 48,720 32,762 Unfunded status at end of period $ ( 10,624 ) $ ( 11,402 ) (1) In connection with the Business Combination, we acquired $ 29.6 million of additional projected benefit obligations and.$ 22.3 million of plan assets whose beginning of period measurement date is July 15, 2022. The accumulated benefit obligation was $ 56.8 million and $ 44.2 million as of December 31, 2022 and 2021, respectively. The decrease in the accumulated benefit obligation, projected benefit obligation and the actuarial loss was primarily attributable to an increase in the discount rate during 2022. The net amounts recognized in the Consolidated Balance Sheets for the unfunded pension liability as of December 31, 2022 and 2021 were as follows: (In thousands) 2022 2021 Current liability $ — $ — Pension liability 10,624 11,402 Total $ 10,624 $ 11,402 The components of net periodic pension cost, other than the service cost component, are included in other income (expense), net in the Consolidated Statements of (Loss) Income. The components of net periodic pension cost and amounts recognized in other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Net periodic benefit cost: Service cost $ 1,426 $ 1,229 $ 1,270 Interest cost 1,168 339 444 Expected return on plan assets ( 2,129 ) ( 1,842 ) ( 1,679 ) Amortization of actuarial losses 355 1,088 970 Net periodic benefit cost 820 814 1,005 Other changes in plan assets and benefit obligations Net actuarial (gain) loss ( 6,549 ) ( 4,984 ) 1,784 Amortization of actuarial losses ( 113 ) ( 825 ) ( 1,212 ) Amount recognized in other comprehensive (loss) income ( 6,662 ) ( 5,809 ) 572 Total recognized in net periodic benefit cost and other $ ( 5,842 ) $ ( 4,995 ) $ 1,577 The amounts recognized in accumulated other comprehensive (loss) income as of December 31, 2022 and 2021 were as follows: (In thousands) 2022 2021 Net actuarial loss $ ( 1,073 ) $ ( 7,736 ) The defined benefit pension plan is accounted for on an actuarial basis, which requires the use of various assumptions, including an expected rate of return on plan assets and a discount rate. The expected return on our plans assets is utilized in determining the benefit obligation and net periodic benefit cost is derived from periodic studies, which include a review of asset allocation strategies, anticipated future long-term performance of individual asset classes, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. The discount rate has been derived from the returns of high-quality, corporate bonds denominated in Euro currency with durations close to the duration of our pension obligations. The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2022, 2021 and 2020 were as follows: 2022 2021 2020 Discount rate 3.24 % 1.16 % 1.00 % Rate of compensation increase 2.17 % 2.00 % 2.00 % Expected long-term rates of return 4.65 % 5.90 % 5.90 % The weighted-average assumptions that were used to determine the benefit obligation as of December 31, 2022 and 2021: 2022 2021 2020 Discount rate 3.10 % 1.16 % 0.69 % Rate of compensation increase 2.17 % 2.00 % 2.00 % Actuarial gains and losses are recorded in accumulated other comprehensive (loss) income. To the extent unamortized gains and losses exceed 10 % of the higher of the market-related value of assets or the projected benefit obligation, the excess is amortized as a component of net periodic pension cost over the remaining service period of active participants. The Company anticipates making approximately $ 1.8 million in contributions to the pension plans in 2023 The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants: (In thousands) 2023 $ 2,377 2024 2,303 2025 3,331 2026 3,092 2027 3,710 2028 - 2032 18,287 Total $ 33,100 U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments: • Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market; • Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; • Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees. We have categorized our cash equivalents and our investments held at fair value into this hierarchy as follows: Fair Value Measurements at December 31, 2022 Using (In thousands) Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 1,423 $ 1,423 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 13,256 13,256 — — Government bonds 5,490 5,490 — — Equity funds: — — — — Global equity 15,452 15,452 — — Balanced fund 5,190 5,190 — — Emerging markets 1,707 1,707 — — Large cap value 194 194 — — Global real estate fund 6,008 6,008 — — Available-for-sale securities 47,297 47,297 — — Total $ 48,720 $ 48,720 $ — $ — Fair Value Measurements at December 31, 2021 Using (In thousands) Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 801 $ 801 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 7,528 7,528 — — Government bonds 5,721 5,721 — — Equity funds: Global equity 12,170 12,170 — — Balanced fund 2,919 2,919 — — Emerging markets 2,259 2,259 — — Large cap value 235 235 — — Global real estate fund 1,129 1,129 — — Available-for-sale securities 31,961 31,961 — — Total $ 32,762 $ 32,762 $ — $ — Our investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants and consider a broad range of economic conditions. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions and achieve asset returns that are competitive with like institutions employing similar investment strategies. The investment policy is periodically reviewed by the Company and a designated third-party fiduciary for investment matters. The policy is established and administered in a manner that is compliant at all times with applicable government regulations. 401(k) Savings Plan We maintain the ADTRAN, Inc. 401(k) Retirement Plan (the “Savings Plan”) for the benefit of eligible employees. The Savings Plan is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), and is intended to be a “safe harbor” 401(k) plan under Code Section 401(k)(12). The Savings Plan allows employees to save for retirement by contributing part of their compensation to the plan on a tax-deferred basis. The Savings Plan also requires us to contribute a “safe harbor” amount each year. We match up to 4 % of employee contributions ( 100 % of an employee’s first 3 % of contributions and 50 % of their next 2 % of contributions ), beginning on the employee’s one-year anniversary date. In calculating our matching contribution, compensation up to the statutory maximum under the Code is used ($ 305,000 for 2022 ). All matching contributions under the Savings Plan vest immediately. Employer contribution expense and plan administration costs for the Savings Plan amounted to approximately $ 4.1 million, $ 3.9 million and $ 4.0 million in 2022, 2021 and 2020, respectively. Deferred Compensation Plans We maintain four deferred compensation programs for certain executive management employees and our Board of Directors. The ADTRAN, Inc. Deferred Compensation Program for Employees is offered as a supplement to our tax-qualified 401(k) plan and is available to certain executive management employees who have been designated by our Board of Directors. This deferred compensation plan allows participants to defer all or a portion of certain specified bonuses and up to 25 % of remaining cash compensation and permits us to make matching contributions on a discretionary basis without the limitations that apply to the 401(k) plan. To date, we have not made any matching contributions under this plan. We also maintain the ADTRAN, Inc. Equity Deferral Program for Employees. Under this plan, participants may elect to defer all or a portion of their vested PSUs and RSUs to the plan. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the participant. For our Board of Directors, we maintain the ADTRAN, Inc. Deferred Compensation Program for Directors. This program allows our Board of Directors to defer all or a portion of monetary remuneration paid to the Director, including, but not limited to, meeting fees and annual retainers. We also maintain the ADTRAN, Inc. Equity Deferral Program for Directors. Under this plan, participants may elect to defer all or a portion of their vested restricted stock awards. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the director. We have set aside the plan assets for all plans in a rabbi trust (the “Trust”) and all contributions are credited to bookkeeping accounts for the participants. The Trust assets are subject to the claims of our creditors in the event of bankruptcy or insolvency. The assets of the Trust are deemed to be invested in pre-approved mutual funds as directed by each participant and the participant’s bookkeeping account is credited with the earnings and losses attributable to those investments. Benefits are scheduled to be distributed six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten-year term based on the participant’s election . Distributions will be made on a pro-rata basis from each of the hypothetical investments of the participant’s account in cash. Any whole shares of ADTRAN, Inc. common stock that are distributed will be distributed in-kind. Assets of the Trust are deemed invested in mutual funds that cover an investment spectrum ranging from equities to money market instruments. These mutual funds are publicly quoted and reported at fair value. The fair value of the assets held by the Trust and the amounts payable to the plan participants as of December 31, 2022 and 2021 were as follows: (In thousands) 2022 2021 Fair Value of Plan Assets Long-term investments $ 22,943 $ 26,935 Total Fair Value of Plan Assets $ 22,943 $ 26,935 Amounts Payable to Plan Participants Deferred compensation liability $ 26,668 $ 31,383 Total Amounts Payable to Plan Participants $ 26,668 $ 31,383 The Trust held $ 3.7 million and $ 4.1 million of common stock in the Company as of December 31, 2022 and 2021, respectively. Shares of the Company held by the Trust are recorded at cost and classified as treasury stock on the Consolidated Balance Sheet. Interest and dividend income of the Trust are included in interest and dividend income in the accompanying 2022, 2021 and 2020 Consolidated Statements of (Loss) Income. Changes in the fair value of the plan assets held by the Trust have been included in other income (expense) in the accompanying 2022, 2021 and 2020 Consolidated Statements of (Loss) Income. Changes in the fair value of the deferred compensation liability are included as selling, general and administrative expense in the accompanying 2022, 2021 and 2020 Consolidated Statements of (Loss) Income. Based on the changes in the total fair value of the Trust’s assets, the Company recorded deferred compensation income in 2022, 2021 and 2020 of $ 6.3 million, $ 0.9 million and $ 4.3 million, respectively. Retiree Medical Coverage Medical, dental and prescription drug coverage is provided to certain spouses and former spouses of current and former officers on the same terms as provided to our active officers for up to 30 years. As of December 31, 2022 and 2021 , this liability totaled $ 0.2 million and $ 0.3 million, respectively. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Note 17 – Equity The following table presents changes in accumulated other comprehensive (loss) income, net of tax, by components of accumulated other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020: (In thousands) Unrealized Defined Foreign ASU 2018-02 Adoption (1) Total Balance as of December 31, 2019 $ ( 284 ) $ ( 9,226 ) $ ( 7,292 ) $ 385 $ ( 16,417 ) Other comprehensive (loss) income before reclassifications 749 ( 1,231 ) 4,857 — 4,375 Amounts reclassified from accumulated other comprehensive (loss) income ( 433 ) 836 — — 403 Balance as of December 31, 2020 32 ( 9,621 ) ( 2,435 ) 385 ( 11,639 ) Other comprehensive (loss) income before reclassifications ( 705 ) 3,439 ( 3,699 ) — ( 965 ) Amounts reclassified from accumulated other comprehensive (loss) income 121 569 — — 690 Balance as of December 31, 2021 ( 552 ) ( 5,613 ) ( 6,134 ) 385 ( 11,914 ) Other comprehensive (loss) income before reclassifications ( 41 ) 4,519 53,396 — 57,874 Amounts reclassified from accumulated other comprehensive (loss) income ( 243 ) 78 — — ( 165 ) Net current period other comprehensive (loss) income ( 284 ) 4,597 53,396 — 57,709 Less: Comprehensive Loss attributable to non-controlling interest, net of tax — — ( 918 ) — ( 918 ) Balance as of December 31, 2022 $ ( 836 ) $ ( 1,016 ) $ 48,180 $ 385 $ 46,713 (1) With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings. The following tables present the details of reclassifications out of accumulated other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020: (In thousands) For the year ended December 31, Details about Accumulated Other Comprehensive (Loss) 2022 2021 2020 Affected Line Item in the Unrealized (loss) gains on available-for-sale securities: Net realized gain (loss) on sales of securities $ 328 $ ( 164 ) $ 585 Net investment gain Defined benefit plan adjustments – actuarial losses ( 113 ) ( 825 ) ( 1,212 ) (1) Total reclassifications for the period, before tax 215 ( 989 ) ( 627 ) Tax (benefit) expense ( 50 ) 299 224 Total reclassifications for the period, net of tax $ 165 $ ( 690 ) $ ( 403 ) (1) Included in the computation of net periodic pension cost. See Note 16 for additional information. The following tables present the tax effects related to the change in each component of other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020: 2022 (In thousands) Before-Tax Tax Net-of-Tax Unrealized gains (losses) on available-for-sale securities $ ( 55 ) $ 14 $ ( 41 ) Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss) ( 328 ) 85 ( 243 ) Defined benefit plan adjustments 6,549 ( 2,030 ) 4,519 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss) 113 ( 35 ) 78 Foreign currency translation adjustment 53,396 — 53,396 Total Other Comprehensive (Loss) Income $ 59,675 $ ( 1,966 ) $ 57,709 2021 (In thousands) Before-Tax Tax Net-of-Tax Unrealized gains (losses) on available-for-sale securities $ ( 953 ) $ 248 $ ( 705 ) Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss) 164 ( 43 ) 121 Defined benefit plan adjustments 4,984 ( 1,545 ) 3,439 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss) 825 ( 256 ) 569 Foreign currency translation adjustment ( 3,699 ) — ( 3,699 ) Total Other Comprehensive (Loss) Income $ 1,321 $ ( 1,596 ) $ ( 275 ) 2020 (In thousands) Before-Tax Tax Net-of-Tax Unrealized gains (losses) on available-for-sale securities $ 1,012 $ ( 263 ) $ 749 Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) income ( 585 ) 152 ( 433 ) Defined benefit plan adjustments ( 1,784 ) 553 ( 1,231 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) income 1,212 ( 376 ) 836 Foreign currency translation adjustment 4,857 — 4,857 Total Other Comprehensive (Loss) Income $ 4,712 $ 66 $ 4,778 |
Segment Information and Major C
Segment Information and Major Customers | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information and Major Customers | Note 18 – Segment Information and Major Customers The chief operating decision maker regularly reviews the Company’s financial performance based on two reportable segments: (1) Network Solutions and (2) Services & Support. The Network Solutions segment includes hardware and software products that enable a digital future which support the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions. The Company's cloud-managed Wi-Fi gateways, virtualization software, and switches provide a mix of wired and wireless connectivity at the customer premises. In addition, its Carrier Ethernet products support a variety of applications at the network edge ranging from mobile backhaul to connecting enterprise customers (“Subscriber Solutions"). The Company's portfolio includes products for multi-gigabit service delivery over fiber or alternative media to homes and businesses. The Services & Support segment offers a comprehensive portfolio of network design, implementation, maintenance and cloud-hosted services supporting its Subscriber, Access and Aggregation, and Optical Networking Solutions. These services assist operators in the deployment of multi-vendor networks while reducing their cost to maintain these networks. The cloud-hosted services include a suite of SaaS applications under the Company's Mosaic One platform that manages end-to-end network and service optimization for both fiber access infrastructure and mesh Wi-Fi connectivity. The Company backs these services with a global support organization that offers on-site and off-site support services with varying SLAs. The performance of these segments is evaluated based on revenue, gross profit and gross margin; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net investment (loss) gain, other income, net and income tax benefit (expense) are reported on a Company-wide basis only. There is no inter-segment revenue. Asset information by reportable segment is not produced and, therefore, is not reported. The following table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 (In thousands) Revenue Gross Profit Revenue Gross Profit Revenue Gross Profit Network Solutions $ 916,793 $ 269,688 $ 498,834 $ 190,993 $ 438,015 $ 193,789 Services & Support 108,743 57,564 64,170 27,384 68,495 23,762 Total $ 1,025,536 $ 327,252 $ 563,004 $ 218,377 $ 506,510 $ 217,551 For the years ended December 31, 2022, 2021 and 2020, $ 3.2 million, $ 1.2 million and $ 1.4 million, respectively, of depreciation expense was included in gross profit for our Network Solutions segment. For the years ended December 31, 2022, 2021 and 2020, $ 10 thousand, $ 14 thousand and $ 32 thousand, respectively, of depreciation expense was included in gross profit for our Services & Support segment. Revenue by Category In addition to its reportable segments, revenue is also reported for the following three categories – Subscriber Solutions, Access & Aggregation Solutions, and Optical Networking Solutions. Prior to the Business Combination with ADVA on July 15, 2022, ADTRAN reported revenue across the following three categories: (1) Access & Aggregation, (2) Subscriber Solutions & Experience and (3) Traditional & Other Products. Following the Business Combination with ADVA, the Company has recast these revenues such that ADTRAN’s former Access & Aggregation revenue is combined with a portion of the applicable ADVA solutions to create Access & Aggregation Solutions, ADTRAN’s former Subscriber Solutions & Experience revenue is combined with a portion of the applicable ADVA solutions to create Subscriber Solutions, and the revenue from Traditional & Other products is now included in the applicable Access & Aggregation Solutions or Subscriber Solutions category. Optical Networking Solutions is a new revenue category added to represent a meaningful portion of ADVA’s portfolio. Our Subscriber Solutions portfolio is used by service providers to terminate their access services infrastructure at the customer premises while providing an immersive and interactive experience for residential, business and wholesale subscribers. This revenue category includes hardware- and software-based products and services. These solutions include fiber termination solutions for residential, business and wholesale subscribers, Wi-Fi access solutions for residential and business subscribers, Ethernet switching and network edge virtualization solutions for business subscribers, and cloud software solutions covering a mix of subscriber types. Our Access & Aggregation Solutions are solutions that are used by communications service providers to connect residential subscribers, business subscribers and mobile radio networks to the service providers’ metro network, primarily through fiber-based connectivity. This revenue category includes hardware- and software-based products and services. Our solutions within this category are a mix of fiber access and aggregation platforms, precision network synchronization and timing solutions, and access orchestration solutions that ensure highly reliable and efficient network performance. Our Optical Networking Solutions are used by communications service providers, internet content providers and large-scale enterprises to securely interconnect metro and regional networks over fiber. This revenue category includes hardware- and software-based products and services. Our solutions within this category include open optical terminals, open line systems, optical subsystems and modules, network infrastructure assurance systems, and automation platforms that are used to build high-scale, secure and assured optical networks. The following tables disaggregate our revenue by category for the years ended December 31, 2022, 2021 and 2020: 2022 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 364,238 $ 26,216 $ 390,454 Access & Aggregation Solutions 326,934 47,068 374,002 Optical Networking Solutions 225,621 35,459 261,080 Total $ 916,793 $ 108,743 $ 1,025,536 2021 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 189,825 $ 16,385 $ 206,210 Access & Aggregation Solutions 309,009 47,785 356,794 Optical Networking Solutions — — — Total $ 498,834 $ 64,170 $ 563,004 2020 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 163,349 $ 15,315 $ 178,664 Access & Aggregation Solutions 274,666 53,180 327,846 Optical Networking Solutions — — — Total $ 438,015 $ 68,495 $ 506,510 Additional Information The following table presents revenue information by geographic area for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 United States $ 517,433 $ 374,600 $ 352,079 United Kingdom 189,685 56,355 13,799 Germany 146,797 65,229 74,882 Other international 171,621 66,820 65,750 Total $ 1,025,536 $ 563,004 $ 506,510 Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of revenue in 2022 included one customer, at 10.4 %, which was a service provider and was included in both our Network Solutions and Services & Support segments. Single customers comprising more than 10% of revenue in 2021 included one customer at 18 % and was included in both our Network Solutions and Services & Support segments. Single customers comprising more than 10% of revenue in 2020 included three customers at 15 %, 12 % and 10 % and was included in both our Network Solutions and Services & Support segments. Other than those with more than 10% of revenue disclosed above our next five largest customers can change, and have historically changed, from year-to-year. Th e next five largest customers combined represent ed 33 %, 38 % and 34 % of total revenue in 2022, 2021 and 2020, respectively. As of December 31, 2022, property, plant and equipment, net totaled $ 110.7 m illion, which included $ 56.2 million held in the U.S. and $ 54.5 million held outside the U.S. As of December 31, 2021, property, plant and equipm ent, net totaled $ 55.8 million, which included $ 53.0 million held in the U.S. and $ 2.8 million held outside the U.S. Property, plant and equipment, net is reported on a Company-wide, functional basis only. |
Liability for Warranty Returns
Liability for Warranty Returns | 12 Months Ended |
Dec. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Liability for Warranty Returns | Note 19 – Liability for Warranty Returns The liability for warranty obligations totaled $ 7.2 million and $ 5.4 million as of December 31, 2022 and 2021, respectively. These liabilities are included in accrued expenses and other liabilities and other non-current liabilities in the accompanying Consolidated Balance Sheets. A summary of warranty expense and write-off activity for the years ended December 31, 2022, 2021 and 2020 is as follows: Year Ended December 31, (In thousands) 2022 2021 2020 Balance at beginning of period $ 5,403 $ 7,146 $ 8,394 Plus: ADVA acquisition 3,756 — — Plus: Amounts charged to cost and expenses 3,104 855 1,538 Plus: Foreign currency translation adjustments 334 Less: Deductions ( 5,401 ) ( 2,598 ) ( 2,786 ) Balance at end of period $ 7,196 $ 5,403 $ 7,146 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 20 – Commitments and Contingencies Legal Matters From time to time the Company is subject to or otherwise involved in various lawsuits, claims, investigations and legal proceedings that arise out of or are incidental to the conduct of our business (collectively, “Legal Matters”), including those relating to employment matters, patent rights, regulatory compliance matters, stockholder claims, and contractual and other commercial disputes. Such Legal Matters, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Additionally, an unfavorable outcome in a legal matter, including in a patent dispute, could require the Company to pay damages, entitle claimants to other relief, such as royalties, or could prevent the Company from selling some of its products in certain jurisdictions. At this time, the Company is unable to predict the outcome of or estimate the possible loss or range of loss, if any, associated with such legal matters. Performance Bonds C ertain contracts, customers and jurisdictions in which the Company do business require us to provide various guarantees of performance such as bid bonds, performance bonds and customs bonds. As of December 31, 2022 and December 31, 2021, the Company had commitments related to these bonds totaling $ 22.0 million and $ 22.9 million, respectively, which expire at various dates through April 2031. In general the Company would only be liable for the amount of these guarantees in the event of default under each contract, the probability of which the Company believes is remote. Purchase Commitments The Company purchases components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. Our inventory purchase commitments are for short-term product manufacturing requirements as well as for commitments to suppliers to secure manufacturing capacity. Certain of our inventory purchase commitments with contract manufacturers and suppliers relate to arrangements to secure supply and pricing for certain product components for multi-year periods. As of December 31, 2022, purchase commitments totaled $ 552.4 million. |
Current Expected Credit Losses
Current Expected Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Current Expected Credit Losses | Note 21 – Current Expected Credit Losses Under ASC 326 – Financial Instruments – Credit Losses , the Company estimates credit losses for the contractual life of assets that are measured at amortized cost and are within the scope of this guidance, which includes accounts receivable, net investment in sales-type leases, contract assets under the revenue recognition model and outstanding notes receivable. Where appropriate, the Company pools assets if similar risk characteristics exist. Additionally, the Company analyzes its available-for-sale debt securities for impairment and records a credit loss allowance as needed. Assets Measured at Amortized Cost Accounts Receivable The Company records accounts receivable in the normal course of business as products are shipped or services are performed and invoiced, but payment has not yet been remitted by the customer. Accounts receivable balances are considered past due when payment has not been received by the date indicated on the relevant invoice or based on agreed upon terms between the customer and the Company. As of December 31, 2022 and 2021, the Company’s net outstanding accounts receivable balance was $ 279.4 million and $ 158.7 million, respectively. The Company assessed the need for an allowance for credit losses related to its outstanding accounts receivable using the historical loss-rate method as well as assessing asset-specific risks. The Company’s historical losses related to accounts receivable have been immaterial as evidenced by its historical allowance and write-offs due to collectability. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition, credit rating by geographic location, as provided by a third party and/or by customer, if needed, and the overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its accounts receivable balance, assessing the specific country risk rating and overall economics of that particular country. If elevated risk existed, or customer specific risk indicated the accounts receivable balance was at risk, the Company further analyzed the need for an allowance related to specific accounts receivable balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would require further review and analysis by the Company. Credit losses totaling less than $ 0.1 million were recorded for the year ended December 31, 2022 , related to accounts receivable. No credit losses were recorded for the years ended December 31, 2021 and 2020 related to accounts receivable. The Company's allowance for credit losses related to accounts receivable was less than $ 0.1 as of December 31, 2022. The Company had no allowance for credit losses related to accounts receivable as of December 31, 2021. Contract Assets The Company records contract assets when it has recognized revenue but has not yet billed the customer. As of December 31, 2022 and 2021, the Company’s outstanding contract asset balance was $ 1.9 million and $ 0.5 million, respectively, which is included in other receivables on the Consolidated Balance Sheets. The Company assessed the need for an allowance for credit losses related to its outstanding contract assets using the historical loss-rate method as well as asset-specific risks. The Company’s historical losses related to contract assets receivable have been immaterial as evidenced by historical write-offs due to collectability. Asset-specific risk included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay once invoiced, such as the customer’s financial condition, credit rating by geographic location as provided by a third party and/or by customer, if needed, and the overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its contract asset balance, assessing the specific country risk rating and the overall economics of that particular country. If elevated risk existed, or customer specific risk indicated the contract balance was at risk, the Company further analyzed the need for an allowance related to specific customer balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would be subject to further review and analysis by the Company. No allowance for credit losses was recorded for the year ended December 31, 2022 and 2021 related to contract assets. Off-Balance Sheet Arrangements The Company did no t have any off-balance sheet arrangements as of December 31, 2022, 2021 or January 1, 2021. Available-for-Sale Debt Securities As of December 31, 2022 and 2021 the Company’s available-for-sale debt securities totaled $ 9.3 million and $ 30.1 million, respectively. These securities were analyzed at the individual investment level, by Committee on Uniform Securities Identification Procedures (“CUSIP”), to limit credit losses, if applicable, to reflect only the amount by which the fair value of the security was less than its amortized cost. The Company noted that, as of December 31, 2022 and, 2021, there was no intent to sell any of its available-for-sale debt securities before maturity, and, therefore, the Company assessed the need for an allowance for each of its available-for-sale debt securities in which the fair value was less than its amortized cost as of December 31, 2022 and 2021. Accrued interest receivable on available-for-sale debt securities, which is included in other receivables on the Consolidated Balance Sheets as of December 31, 2022 and 2021, which totaled less than $ 0.1 million and was excluded from the estimate of credit losses for both periods based on the Company’s accounting policy election. Income generated from available-for-sale debt securities was recorded as interest and dividend income in the Consolidated Statements of (Loss) Income. The Company had 99 positions in available-for-sale debt securities that were in an unrealized loss position as of December 31, 2022. See Note 6 for additional information. For those available-for-sale debt securities whose fair value was less than its amortized cost basis, the Company analyzed additional criteria such as adverse conditions specifically related to the security, an industry or geographic area, failure of the issuer of the security to make scheduled interest or principal payments, if applicable, and any changes to the rating of the security by a rating agency to determine if a credit loss existed. The Company used information provided by its investment manager to determine if any scheduled interest or principal payments had not been received and used a third party to determine if any changes to credit ratings had occurred. Principal and interest payments are considered past due when payment has not been received based on scheduled terms of each debt security. The Company ceases to accrue interest on debt securities on a case by case basis. As of December 31, 2022, the Company noted that all principal and interest payments had been received as scheduled and that there had been no changes in credit ratings year-over-year or period-over-period that warranted further review. No allowance for credit losses was recorded for the years ended December 31, 2022 and 2021 related to the Company’s available-for-sale debt securities. |
(Loss) Earnings per Share
(Loss) Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings per Share | Note 22 – (Loss) Earnings per Share The calculations of basic and diluted (loss) earnings per share for the years ended December 31, 2022, 2021 and 2020 are as follows: (In thousands, except for per share amounts) 2022 2021 2020 Numerator Net (Loss) Income attributable to ADTRAN Holdings, Inc. $ ( 2,037 ) $ ( 8,635 ) $ 2,378 Denominator Weighted average number of shares – basic 62,346 48,582 47,996 Effect of dilutive securities: PSUs, RSUs and restricted stock — — 292 Weighted average number of shares – diluted 62,346 48,582 48,288 (Loss) earnings per share attributable to ADTRAN Holdings, Inc. – basic $ ( 0.03 ) $ ( 0.18 ) $ 0.05 (Loss) earnings per share attributable to ADTRAN Holdings, Inc. – diluted $ ( 0.03 ) $ ( 0.18 ) $ 0.05 For each of the years ended December 31, 2022, 2021 and 2020, less than 0.1 million, 0.1 million and 0.1 million shares of unvested or unearned, as applicable, PSUs, RSUs and restricted stock were excluded from the calculation of diluted (loss) earnings per share due to their anti-dilutive effect. For the year ended December 31, 2022, 2021 and 2020, 0.2 million, 0.3 million and 3.6 million stock options, respectively, were outstanding but were not included in the computation of diluted (loss) earnings per share due to their exercise prices being greater than the average market price of the common shares during the quarter, making them anti-dilutive u nder t he treasury stock method. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 23 – Restructuring During the fourth quarter of 2022, the Company initiated a multi-year integration program designed to optimize the assets, business processes, and information technology systems of the Company in relation to the Business Combination with ADVA. The integration program is expected to maximize cost synergies by realizing operation scale, combining sales channels, streamlining corporate and general and administrative functions and combining sourcing and production costs. During the second half of 2019, the Company initiated a restructuring plan to realign its expense structure with the reduction in revenue experienced in recent years and overall Company objectives. As part of this restructuring plan, the Company announced plans to reduce its overall operating expenses, both in the U.S. and internationally. This plan was completed and all amounts paid in 2021. In February 2019, the Company announced the restructuring of a certain portion of its workforce predominantly in Germany, which included the closure of the Company’s office location in Munich, Germany accompanied by relocation or severance benefits for the affected employees. Voluntary early retirement was offered to certain other employees and was announced in March 2019 and again in August 2020. This plan was completed in 2021 and all amounts paid in 2022. A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits in the Consolidated Balance Sheets as of December 31, 2022 and 2021, is as follows: (In thousands) 2022 2021 Balance at beginning of period $ 1,514 $ 4,186 Plus: Amounts charged to cost and expense 1,629 411 Less: Amounts paid ( 2,984 ) ( 3,083 ) Balance at end of period $ 159 $ 1,514 Restructuring expenses included in the Consolidated Statements of (Loss) Income are for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Network solutions - cost of revenue $ 8 $ 13 $ 220 Services & support - cost of revenue — 3 235 Cost of revenue $ 8 $ 16 $ 455 Selling, general and administrative expenses 117 221 1,832 Research and development expenses 1,504 174 3,942 Total restructuring expenses $ 1,629 $ 411 $ 6,229 The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 United States $ 2 $ 289 $ 2,234 International 1,627 122 3,995 Total restructuring expenses $ 1,629 $ 411 $ 6,229 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 24 – Subsequent Events Dividend approval On February 20, 2023 , the Company announced that its Board of Directors declared a quarterly cash dividend of $ 0.09 per common share to be paid to the Company’s stockholders of record at the close of business on March 7, 2023 . The payment date will be March 21, 2023 in the aggregate amount of approximately $ 7.0 million. Effectiveness of the Domination and Profit and Loss Transfer Agreement The DPLTA between the Company, as the controlling company, and ADVA Optical Networking SE, as the controlled company as executed on December 1, 2022, became effective on January 16, 2023, as a result of its registration with the commercial register ( Handelsregister ) of the local court ( Amtsgericht ) at the registered seat of ADVA (Jena). Under the DPLTA, subject to certain limitations pursuant to applicable law and the specific terms of the DPLTA, (i) the Company is Expansion of Wells Fargo Line of Credit & Payoff of ADVA Loans. Upon the DPLTA becoming effective on January 16, 2023, the available total borrowings under the Wells Fargo Credit Agreement increased from $ 100 million to $ 400 million. On January 31, 2023, the Company increased its borrowings under the Credit Agreement from $ 60.0 million to $ 187.5 million. In February 2023, the borrowings under the Credit Agreement were paid down by $ 7.5 million, leaving $ 180.0 million of borrowings as of February 28, 2023. After considering our outstanding letters of credit, this leaves the Company approximately $ 198.7 million available for future borrowings as of February 28, 2023. The Company used approximately $ 51.4 million of the proceeds from the borrowings under the Credit Agreement to retire the outstanding borrowings under ADVA's syndicated credit agreement note payable, syndicated credit agreement working capital line of credit and the Nord/LB revolving line of credit. ADVA's $ 9.1 million of borrowings under their revolving line of credit with DZ bank remains outstanding. Integration Bonus Plan On March 1, 2023, the Compensation Committee of the Board of Directors of the Company established an “Integration Bonus Plan” consisting of a combination of performance-based performance stock units ("PSUs") and cash bonus award amounts (together with the PSUs, the “Integration Awards”). Under the Integration Bonus Plan, certain key employees of the Company, including the Company’s named executive officers as disclosed in the most recent proxy statement filed by the Company with the SEC (the “Participants”), are eligible to earn the Integration Awards over a performance period beginning upon the date of the grant and ending on December 31, 2024 based on the achievement of cost savings targets related to the Business Combination. See Item 9B. Other Information of this report for addition information. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHE DULE II VALUATION AND QUALIFYING ACCOUNTS (In thousands) Balance at Charged to Deductions Balance at Year ended December 31, 2022 Allowance for Credit Losses $ — 49 — $ 49 Deferred Tax Asset Valuation Allowance $ 50,564 — 45,363 $ 5,201 Year ended December 31, 2021 Allowance for Credit Losses $ 38 ( 38 ) — $ — Deferred Tax Asset Valuation Allowance $ 45,818 6,347 1,601 $ 50,564 Year ended December 31, 2020 Allowance for Credit Losses $ 38 — — $ 38 Deferred Tax Asset Valuation Allowance $ 48,616 5,120 7,918 $ 45,818 |
Nature of Business (Policies)
Nature of Business (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the financial position, results of operations, comprehensive (loss) income, changes in equity and cash flows of ADTRAN and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Significant estimates include allowance for credit losses on accounts receivable and contract assets, excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of the deferred revenue related to performance obligations under contracts with customers, estimated costs to complete obligations associated with deferred and accrued revenues and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimates of intangible assets upon measurement, estimated pension liability and fair value of investments. Actual amounts could differ significantly from these estimates. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of the SARS-CoV-2 coronavirus/COVID-19 global pandemic (or variants of the SARS-CoV-2 coronavirus), supply chain constraints, inflationary pressures, the energy crisis, currency fluctuations and political tensions as of December 31, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for credit losses, stock-based compensation, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets, revenue recognition and costs of revenue. Future conditions related to the magnitude and duration of the COVID-19 pandemic, as well as other factors, including supply chain constraints and inflationary pressures could result in further impacts to the Company's consolidated financial statements in future reporting periods. |
Correction of Immaterial Misstatements | Correction of Immaterial Misstatements During the first quarter of 2020, it was determined that certain investments held in the Company’s stock for a deferred compensation plan accounted for as a Rabbi trust were incorrectly classified as long-term investments with the fair value of such investments incorrectly marked to market at each period end rather than classified as treasury stock held at historical cost. This plan has been in existence since 2011. The Company corrected this misstatement as an out-of-period adjustment in the three months ended March 31, 2020 and the twelve months ended December 31, 2020, by remeasuring the investment assets to their historical cost basis through the recording of a net investment gain of $ 1.5 million in the Consolidated Statement of (Loss) Income and then correcting the classification by decreasing the long-term investment balance at its remeasured cost basis of $ 2.8 million to treasury stock in the Consolidated 2020 Balance Sheet. Management has determined that this misstatement was not material to any of its previously issued financial statements and that correction of the misstatement was not material to the 2020 annual financial results on either a quantitative or qualitative basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent demand deposits, money market funds and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. As of December 31, 2022 , $ 100.1 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 12. The estimated fair value of our notes payable, approximates the carrying value and is classified as Level II under the fair value hierarchy. The carrying value of our notes payable is included in Note 14. Investments with contractual maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments is recorded as interest income. We have not recorded any losses relating to variable rate demand notes. Long-term investments is comprised of deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency-backed bonds, U.S. and foreign government bonds, marketable equity securities and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Any changes in fair value are recognized in net investment (loss) gain. Realized gains and losses on sales of debt securities are computed under the specific identification method and are included in other income (expense). See Note 6 for additional information. For financing receivables, the Company does not measure the allowance for credit losses for accrued interest receivables, as the uncollectable accrued interest receivable is written off by reversing any previously recorded interest income in a timely manner (as soon as these amounts are determined to be uncollectable). |
Accounts Receivable | Accounts Receivable We record accounts receivable at amortized cost. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. As of December 31, 2022 , single customers comprising more than 10% of our total accounts receivable balance included three customers, which accounted for 33.1 % of our total accounts receivable. As of December 31, 2022, these three customers individually accounted for 11.4 %, 11.1 % and 10.6 %, respectively, of our total accounts receivable. As of December 31, 2021, single customers comprising more than 10% of our total accounts rece ivable balance included three customers, which accounted for 59.9 % of our total accounts receivable. As of December 31, 2021, these three customers individually accounted fo r 35.8 %, 12.1 % and 12.0 %, respectively, of our total accounts receivable. We regularly review the need for an allowance for credit losses related to our outstanding accounts receivable balances using the historical loss-rate method as well as assessing asset-specific risks. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition or credit rating by geographic location, as provided by a third party and/or by customer, if needed, and overall macro-economic conditions in which the customer operates. Based on this assessment, an allowance for credit losses would be recorded if the Company determined that, based on our historical write-offs, which have been immaterial, and such asset specific risks, there was risk in collectability of the full amount of any accounts receivable. |
Accounts Receivable Factoring | Accounts Receivable Factoring The Company has entered into a factoring agreement to sell certain receivables to an unrelated third-party financial institution on a non-recourse basis. These transactions are accounted for in accordance with Accounting Standards Codification ("ASC") Topic 860, Transfers and Servicing, and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Trade accounts receivables balances sold are removed from the Consolidated Balance Sheets and cash received is reflected as cash provided by (used in) operating activities in the Consolidated Statements of Cash Flow. Factoring related interest expense is recorded to interest expense on the Consolidated Statements of Loss. On each sale date, the financial institution retains from the sale price a default reserve, up to a required balance, which are held by the financial institution in a reserve account and pledged to the Company. The financial institution is entitled to withdraw from the reserve account the sale price of a defaulted receivable. The balance in the reserve account is included in other assets on the Consolidated Balance Sheets. |
Inventory | Inventory Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory and are updated at least quarterly. We establish reserves for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which consider historical usage, known trends, inventory age and market conditions. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 7 for additional information. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years , office machinery and equipment from three to seven years , engineering machinery and equipment from three to seven years , and computer software from three to five years . Expenditures for repairs and maintenance are charged to expense as incurred. Major improvements that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating loss. See Note 8 for additional information. |
Intangible Assets | Intangible Assets Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets. See Note 11 for additional information. |
Impairment of Long-Lived Assets and Intangibles | Impairment of Long-Lived Assets and Intangibles Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no t be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs. As a result the Company recognized impairment charges of $ 17.4 million during the year ended December 31, 2022 related to capitalized implementation costs for a cloud computing arrangement. The impairment charges were determined based on actual costs incurred. There were no impairment losses for long-lived assets during the years ended December 31, 2021 and 2020, or for intangible assets recognized during the years ended December 31, 2022, 2021 or 2020. |
Goodwill | Goodwill Goodwill represents the excess purchase price over the fair value of net assets acquired. The carrying value of goodwill is tested for impairment in the fourth quarter of each year or more frequently if events or circumstances indicate it may be impaired. The quantitative goodwill impairment test is performed at the level of the reporting unit. The identification of our reporting units begins at the operating segment level and considers whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment. For goodwill impairment testing purposes, the Company determined the Company's reporting units are generally the same as its operating segments, which are identified in Note 18 to the Consolidated Financial Statements. Our general policy is to qualitatively assess the carrying value of goodwill each reporting period for events or changes in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Related to the Business Combination with ADVA the Company recognized $ 350.5 million of goodwill upon the merger on July 15, 2022. Therefore, we decided to proceed directly to the quantitative test of goodwill and forego the qualitative assessment. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. We also estimate the fair value of our reporting units based on a peer group analysis, whereby companies in the telecommunications industry or with a comparable product and market structure are used to calculate a fair enterprise value using revenue, EBITDA and debt multiples of trading value. Based on our analysis, management concluded that there was no impairment of goodwill as of December 31, 2022. No impairment charges on goodwill were recognized during the years ended December 31, 2021 and 2020. |
Other Non-Current Assets | Other Non-Current Assets Implementation costs incurred for hosting arrangements that are related to service contracts are capitalized and amortized over the term of the arrangement. Capitalized implementation costs totaled $ 6.2 million and $ 21.0 million as of December 31, 2022 and 2021, respectively and are included in other non-current assets on the Consolidated Balance Sheets. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs. As a result the Company recognized impairment charges of $ 16.9 million during the year ended December 31, 2022 related to capitalized implementation costs for a cloud computing arrangement. The impairment charges were determined based on actual costs incurred. During the year ended December 31, 2021 and 2020, no impairment charges were recognized. We depreciate capitalized implementation costs on a straight-line basis over ten years . Amortization expense was $ 3.9 million and $ 1.0 million for the years ended December 31, 2022 and 2021 , respectively, which is recorded almost entirely in selling, general and administrative expenses in the Consolidated Statements of (Loss) Income. No amortization expense was recognized for the year ended December 31, 2020 . |
Liability for Warranty | Liability for Warranty Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time of product shipment based on our historical return rate and estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our estimates regarding future warranty obligations may change due to product failure rates, material usage and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. Our liability for warranty returns totaled $ 7.2 million and $ 5.4 million as of December 31, 2022 and 2021, respectively. |
Pension Benefit Plan Obligations | Pension Benefit Plan Obligations We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Our net pension liability totaled $ 10.6 million and $ 11.4 million as of December 31, 2022 and 2021 , respectively. |
Lease Obligations | Lease Obligations We have operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. Other contracts, such as manufacturing agreements and service agreements, are reviewed to determine if they contain potential embedded leases. These other contracts are specifically reviewed to determine whether we have the right to substantially all of the economic benefit from the use of any specified assets or the right to direct the use of any specified assets, either of which would indicate the existence of a lease. Some of our leases include options to renew, with renewal terms of up to five years . For those leases that are reasonably assured to be renewed, we have included the option to extend as part of our right of use asset and lease liability. The exercise of lease renewal options is at our sole discretion. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we elected to not separate lease and non-lease components. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Stock-Based Compensation | Stock-Based Compensation We have two stock incentive plans from which stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock are available for grant to employees and directors. Costs related to these awards are recognized over their vesting periods. Stock-based compensation expense recognized for the years ended December 31, 2022, 2021 and 2020 was approximately $ 28.3 million, $ 7.5 million, and $ 6.8 million, respectively. See Note 5 for additional information. |
Research and Development Costs | Research and Development Costs Research and development costs include compensation for engineers and support personnel, contracted services, depreciation and material costs associated with new product development, enhancement of current products and product cost reductions. We continually evaluate new product opportunities and engage in intensive research for product and software development efforts. Research and development costs totaled $ 173.8 million, $ 108.7 million and $ 113.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. ADVA has arrangements with governmental entities for the purposes of obtaining funding for research and development activities. The Company classifies government grants received under these arrangements as a reduction to research and development expense incurred. For the year ended December 31, 2022, the Company recognized $ 1.1 million as a reduction of research and development expense. |
Income Taxes | Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax basis of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change. |
Foreign Currency | Foreign Currency Transactions with customers that are denominated in foreign currencies are recorded using the appropriate exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro and our Australian subsidiary, whose functional currency is the Australian dollar. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive (loss) income. |
Revenue | Revenue Revenue is measured based on the consideration expected to be received in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. Generally, this occurs with the transfer of control of a product to the customer. Review of contracts with customers, for both direct customers and distributors, are performed and assessment made regarding principal versus agent considerations to determine primary responsibility for delivery of performance obligation, presumed inventory risk, and discretion in establishing pricing, when applicable. For transactions where there are multiple performance obligations, individual products and services are accounted for separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices. Stand-alone selling prices are determined based on the prices at which the separate products and services are sold and are allocated based on each item’s relative value to the total value of the products and services in the arrangement. For items that are not sold separately, we estimate stand-alone selling prices primarily using the “expected cost plus a margin” approach. Payment terms are generally 30 days in the U.S. and typically longer in many geographic markets outside the U.S. Shipping fees are recorded as revenue and the related cost is included in cost of revenue. Revenue, value-added and other taxes collected concurrently with revenue-producing activities are excluded from revenue. Costs of obtaining a contract, if material, are capitalized and amortized over the period that the related revenue is recognized if greater than one year. We have elected to account for shipping fees as a cost of fulfilling the related contract. We have also elected to apply the practical expedient related to the incremental costs of obtaining contracts and recognize those costs as an expense when incurred if the amortization period of the assets is one year or less. These costs are included in selling, general and administrative expenses. Capitalized costs with an amortization period greater than one year were immaterial. Revenue is generated by two reportable segments: Network Solutions and Services & Support. Network Solutions Segment - Includes hardware products and software defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products. The majority of the revenue from this segment is from hardware revenue. Hardware and Software Revenue Revenue from hardware sales is recognized when control is transferred to the customer, which is generally when the products are shipped. Shipping terms are generally FOB shipping point. Revenue from software license sales is recognized at delivery and transfer of control to the customer. Revenue is recorded net of estimated discounts and rebates using historical trends. Customers are typically invoiced when control is transferred and revenue is recognized. Our products generally include assurance-based warranties of 90 days to five years for product defects, which are accrued at the time products are delivered. Services & Support Segment - Includes a complete portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services to complement our Network Solutions segment. Maintenance Revenue Our maintenance service periods range from one month to five years . Customers are typically invoiced and pay for maintenance services at the beginning of the maintenance period. We recognize revenue for maintenance services on a straight-line basis over the maintenance period as our customers benefit evenly throughout the contract term and deferred revenue, when applicable, are recorded in current and non-current unearned revenue. Network Implementation Revenue We recognize revenue for network implementation, which primarily consists of engineering, execution and enablement services at a point in time when each performance obligation is complete. If we have recognized revenue but have not billed the customer, the right to consideration is recognized as a contract asset that is included in other receivables on the Consolidated Balance Sheet. The contract asset is transferred to accounts receivable when the completed performance obligation is invoiced to the customer. See Notes 4 and 18 for additional information on reportable segments. |
Unearned Revenue | Unearned Revenue Unearned revenue primarily represents customer billings on maintenance service programs and unearned revenue related to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one month to five years . Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple performance obligations where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets and totaled $ 1.5 million and $ 0.7 million as of December 31, 2022 and 2021 , respectively. Non-current deferred costs are included in other non-current assets on the accompanying Consolidated Balance Sheets and less than $ 0.1 million as of December 31, 2022 and $ 0.1 million as of December 31, 2021 . |
(Loss) Earnings per Share | (Loss) Earnings per Share (Loss) earnings per common share and (loss) earnings per common share assuming dilution are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 22 for additional information. |
Business Combinations | Business Combinations The Company records assets acquired, liabilities assumed, contractual contingencies, when applicable, and intangible assets recognized as part of business combinations based on their fair values on the date of acquisition subject to purchase accounting adjustments. The excess of the purchase price over the estimated fair values of the net tangible and intangible assets and liabilities assumed or acquired is recorded as goodwill. If the estimated fair values of net tangible and intangible assets acquired and liabilities assumed exceed the purchase price, a bargain purchase gain is recorded. The Company’s estimates of fair value are based on historical experience, industry knowledge, certain information obtained from the management of the acquired company and, in some cases, valuations performed by independent third-party firms. The results of operations of acquired companies are included in the accompanying Consolidated Statements of (Loss) Income since their dates of acquisition. Costs incurred to complete the Business Combination, such as legal, accounting or other professional fees are charged to selling, general and administrative expenses as incurred. |
Non-Controlling Interest | Non-Controlling Interest Non-controlling interest represents the equity interest in ADVA held by holders other than the Company. On July 15, 2022, upon the close of the Business Combination, the ADVA stockholders’ equity ownership percentage in ADVA was approximately 36 %. The Company has consolidated the financial position and results of operations of ADVA and reflected the proportionate interest held by the ADVA stockholders as non-controlling interest in the accompanying condensed consolidated balance sheet. As of December 31, 2022, the ADVA stockholders’ equity ownership percentage in ADVA was approximately 34.7 %. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted There are currently no recently issued accounting pronouncements not yet adopted which would have a material effect on the Condensed Consolidated Financial Statements. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which would require an acquirer to recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured them in its pre-acquisition financial statements in accordance with Topic 606, Revenue Recognition. The Company early adopted ASU 2021-08 on July 1, 2022 and the standard was applied retrospectively beginning with January 1, 2022. |
Business Combination Agreement
Business Combination Agreement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Summary of Purchase Price for Business Combination | The following table summarizes the purchase price for the ADVA business combination: (In thousands, except shares, share price and exchange ratio) Purchase Price ADVA shares exchanged 33,957,538 Exchange ratio 0.8244 ADTRAN Holdings, Inc. shares issued 27,994,595 ADTRAN Holdings, Inc. share price on July 15, 2022 $ 20.20 Purchase price paid for ADVA shares $ 565,491 Equity compensation (1) $ 12,769 Total purchase price $ 578,260 (1) Represents the portion of replacement share-based payment awards that relates to pre-combination vesting. |
Summary of Purchase Price Allocation of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary purchase price allocation for each major class of assets acquired and liabilities assumed in the acquisition of ADVA (in thousands): (In thousands) Total purchase price $ 578,260 Non-controlling interest $ 316,415 Net Assets: Cash and cash equivalents $ 44,003 Accounts receivable 114,659 Other receivables 1,457 Inventory 200,331 Prepaid expenses and other current assets 28,208 Property plant and equipment 55,480 Deferred tax assets 1,759 Identifiable intangible assets 403,780 Other non-current assets 31,074 Accounts payable ( 98,587 ) Current unearned revenue ( 26,047 ) Accrued expenses and other liabilities ( 59,600 ) Income tax payable, net ( 4,898 ) Current portion of notes payable ( 25,254 ) Tax liabilities ( 1,400 ) Non-current unearned revenue ( 11,498 ) Pension liability ( 6,820 ) Other non-current liabilities ( 6,094 ) Non-current portion of revolving credit agreements and notes payable ( 15,250 ) Non-current lease obligations ( 20,046 ) Deferred tax liabilities ( 61,040 ) Total net assets acquired $ 544,217 Goodwill $ 350,458 |
Summary of Fair Value of Identifiable Intangible Assets Acquired | The fair value of the identifiable intangible assets acquired as of the acquisition date: (In thousands) Estimated-average useful life (in years) (1) Fair value Income Statement Amortization Classification Developed technology 8.5 $ 291,925 Cost of revenue - Network Solutions Backlog 1.4 52,165 Cost of revenue - Network Solutions and Services & Support Customer relationships 10.5 32,704 Selling, general and administrative expenses Trade name 2.8 26,986 Selling, general and administrative expenses Total $ 403,780 (1) Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. |
Summary of Unaudited Pro Forma Financial Information | The unaudited pro forma information also does not include any integration costs that the Company may incur related to the acquisition as part of combining the operations of the companies. For the Years Ended (In thousands) 2022 2021 Revenue $ 1,410,296 $ 1,210,201 Net loss attributable to ADTRAN Holdings, Inc. $ ( 46,204 ) $ ( 91,423 ) |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows: (In thousands) December 31, 2022 December 31, 2021 Cash and cash equivalents $ 108,644 $ 56,603 Restricted cash — 215 Cash, cash equivalents and restricted cash $ 108,644 $ 56,818 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregate of Revenue by Reportable Segment and Revenue Category | The following tables disaggregate our revenue by category for the years ended December 31, 2022, 2021 and 2020: 2022 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 364,238 $ 26,216 $ 390,454 Access & Aggregation Solutions 326,934 47,068 374,002 Optical Networking Solutions 225,621 35,459 261,080 Total $ 916,793 $ 108,743 $ 1,025,536 2021 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 189,825 $ 16,385 $ 206,210 Access & Aggregation Solutions 309,009 47,785 356,794 Optical Networking Solutions — — — Total $ 498,834 $ 64,170 $ 563,004 2020 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 163,349 $ 15,315 $ 178,664 Access & Aggregation Solutions 274,666 53,180 327,846 Optical Networking Solutions — — — Total $ 438,015 $ 68,495 $ 506,510 |
Information about Receivable, Contract Assets, and Unearned Revenue from Contracts with Customers | The following table provides information about accounts receivable, contract assets and unearned revenue from contracts with customers: (In thousands) December 31, 2022 December 31, 2021 Accounts receivable $ 279,435 $ 158,742 Contract assets (1) $ 1,852 $ 464 Unearned revenue $ 41,193 $ 17,737 Non-current unearned revenue $ 19,239 $ 9,271 (1) Included in other receivables on the Consolidated Balance Sheets. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock | The following table summarizes stock-based compensation expense related to stock options, PSUs, RSUs and restricted stock for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Stock-based compensation expense included in cost of revenue $ 2,876 $ 543 $ 426 Selling, general and administrative expenses 20,844 4,571 4,036 Research and development expenses 4,602 2,366 2,372 Stock-based compensation expense included in operating expenses 25,446 6,937 6,408 Total stock-based compensation expense 28,322 7,480 6,834 Tax benefit for expense associated with non-qualified stock options, PSUs, RSUs and restricted stock ( 5,152 ) ( 1,849 ) ( 1,629 ) Total stock-based compensation expense, net of tax $ 23,170 $ 5,631 $ 5,205 |
Summary of PSUs, RSUs and Restricted Stock Outstanding | The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2021 and 2022 and the changes that occurred during 2022: Number of Weighted Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2021 1,930 $ 14.11 PSUs, RSUs and restricted stock granted 645 $ 20.56 PSUs, RSUs and restricted stock vested ( 1,440 ) $ 12.81 PSUs, RSUs and restricted stock forfeited ( 49 ) $ 14.22 Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2022 1,086 $ 17.54 |
Summary of Weighted-Average Assumptions and Value of Options Granted | The weighted-average estimated fair value of stock options granted to employees during the year ended December 31,2022 was $ 5.81 per share with the following weighted-average assumptions: 2022 Expected volatility 45.00 % Risk-free interest rate 3.00 % Expected dividend yield 1.77 % Expected life (in years) 2.4 |
Summary of Stock Options Outstanding | The following table is a summary of stock options outstanding as of December 31, 2022 and 2021 and the changes that occurred during 2022: Number of (In thousands) Weighted (Per share) Weighted Avg. Aggregate Value (In thousands) Stock options outstanding, December 31, 2021 1,721 $ 19.37 2.39 $ 6,669 ADVA stock options replaced by ADTRAN Holdings stock options (1) 2,094 $ 11.12 Stock options exercised ( 519 ) $ 15.70 Stock options forfeited ( 10 ) $ 10.28 Stock options expired ( 138 ) $ 22.73 Stock options outstanding, December 31, 2022 3,148 $ 14.37 3.42 $ 16,251 Stock options exercisable, December 31, 2022 1,711 $ 15.95 1.95 $ 7,104 (1) Each ADVA stock option surrendered was exchanged for 0.8244 ADTRAN Holdings stock options. |
Stock Options Outstanding | The following table further describes our stock options outstanding as of December 31, 2022: Options Outstanding Options Exercisable Range of Options (In thousands) Weighted Avg. Weighted Options (In thousands) Weighted $ 6.06 – $ 8.67 755 3.21 $ 7.37 320 $ 6.47 $ 8.68 – $ 13.74 833 4.65 $ 11.45 207 $ 9.63 $ 13.75 – $ 17.15 427 3.27 $ 15.33 368 $ 15.33 $ 17.16 – $ 21.36 679 3.92 $ 19.02 369 $ 18.97 $ 21.37 – $ 23.64 454 0.83 $ 23.64 447 $ 23.64 3,148 1,711 |
ADVA Optical Networking SE [Member] | |
Summary of Stock Options Outstanding | The following table summarizes ADVA Optical Networking SE stock options outstanding as of July 15, 2022 (the Business Combination closing date) and December 31, 2022 and the changes that occurred between July 15, 2022 and December 31, 2022: Number of (In thousands) Weighted (Per share) Weighted Avg. Aggregate Value (In thousands) Stock options outstanding, July 15, 2022 2,745 $ 9.09 4.60 $ 27,205 Stock options exercised ( 102 ) $ 8.02 ADVA stock options replaced by ADTRAN Holdings stock options (1) ( 2,550 ) $ 9.80 Stock options forfeited ( 12 ) $ 9.57 Stock options outstanding, December 31, 2022 81 $ 8.58 4.00 $ 1,222 Stock options exercisable, December 31, 2022 27 $ 7.37 2.39 $ 432 (1) Each ADVA stock option surrendered was exchanged for 0.8244 ADTRAN Holdings stock options. |
Stock Options Outstanding | The following table further describes ADVA's stock options outstanding as of December 31, 2022: Options Outstanding Options Exercisable Range of Options (In thousands) Weighted Avg. Weighted Options (In thousands) Weighted € 4.98 - € 7.05 35 3.52 $ 6.97 9 $ 5.34 € 7.06 - € 8.70 18 2.60 $ 8.41 18 $ 8.41 € 8.71 - € 15.68 28 5.48 $ 10.73 — $ — 81 27 |
Market-Based PSUs [Member] | |
Summary of Weighted-Average Assumptions and Value of Options Granted | The following table details the significant assumptions that impact the fair value estimate of the market-based PSUs: 2022 2021 2020 Estimated fair value per share $ 24.01 $ 26.07 $ 14.43 Expected volatility 45.77 % 53.27 % 51.88 % Risk-free interest rate 4.28 % 0.85 % 0.24 % Expected dividend yield 1.76 % 1.63 % 2.85 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities and Other Investments, Included on Consolidated Balance Sheet and Recorded at Fair Value | Debt Securities and Other Investments As of December 31, 2022, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value: Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value Corporate bonds $ 2,538 $ 5 $ ( 81 ) $ 2,462 Municipal fixed-rate bonds 185 ( 5 ) 180 Asset-backed bonds 818 1 ( 24 ) 795 Mortgage/Agency-backed bonds 1,853 ( 105 ) 1,748 U.S. government bonds 3,870 3 ( 188 ) 3,685 Foreign government bonds 407 ( 24 ) 383 Available-for-sale debt securities held at fair value $ 9,671 $ 9 $ ( 427 ) $ 9,253 As of December 31, 2021, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value: Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value Corporate bonds $ 10,776 $ 6 $ ( 35 ) $ 10,747 Municipal fixed-rate bonds 1,553 2 ( 4 ) 1,551 Asset-backed bonds 322 3 ( 3 ) 322 Mortgage/Agency-backed bonds 4,754 15 ( 33 ) 4,736 U.S. government bonds 12,251 12 ( 92 ) 12,171 Foreign government bonds 543 — ( 4 ) 539 Available-for-sale debt securities held at fair value $ 30,199 $ 38 $ ( 171 ) $ 30,066 |
Contractual Maturities of Debt Securities | As of December 31, 2022, our debt securities had the following contractual maturities: (In thousands) Corporate Municipal Asset-backed Mortgage / U.S. Foreign Less than one year $ — $ 180 $ — $ — $ 160 $ — One to two years 1,450 — 96 162 2,787 276 Two to three years 1,012 — 186 598 617 107 Three to five years — — 335 253 121 — Five to ten years — — — 317 — — More than ten years — — 178 418 — — Total $ 2,462 $ 180 $ 795 $ 1,748 $ 3,685 $ 383 |
Gross Realized Gains and Losses on Sale of Debt Securities | The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2022, 2021 and 2020: For the year ended December 31, (In thousands) 2022 2021 2020 Gross realized gains on debt securities $ 17 $ 241 $ 459 Gross realized losses on debt securities ( 1,211 ) ( 159 ) ( 58 ) Total (loss) gain recognized, net $ ( 1,194 ) $ 82 $ 401 |
Breakdown of Investments with Unrealized Losses | The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2022: Continuous Unrealized Continuous Unrealized Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 1,367 $ ( 39 ) $ 583 $ ( 42 ) $ 1,950 $ ( 81 ) Municipal fixed-rate bonds — — 178 ( 5 ) 180 ( 5 ) Asset-backed bonds 524 ( 14 ) 117 ( 10 ) 641 ( 24 ) Mortgage/Agency-backed bonds 825 ( 23 ) 844 ( 82 ) 1,668 ( 105 ) U.S. government bonds 2,215 ( 106 ) 1,063 ( 82 ) 3,278 ( 188 ) Foreign government bonds — — 383 ( 24 ) 383 ( 24 ) Total $ 4,931 $ ( 182 ) $ 3,168 $ ( 245 ) $ 8,100 $ ( 427 ) The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2021: Continuous Unrealized Continuous Unrealized Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 6,795 $ ( 35 ) $ — $ — $ 6,795 $ ( 35 ) Municipal fixed-rate bonds 1,129 ( 4 ) — — 1,129 ( 4 ) Asset-backed bonds 198 ( 3 ) — — 198 ( 3 ) Mortgage/Agency-backed bonds 3,006 ( 33 ) — — 3,006 ( 33 ) U.S. government bonds 10,552 ( 92 ) — — 10,552 ( 92 ) Foreign government bonds 294 ( 4 ) — — 294 ( 4 ) Total $ 21,974 $ ( 171 ) $ — $ — $ 21,974 $ ( 171 ) |
Realized and Unrealized Gains and Losses for Marketable Equity Securities | Re alized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2022, 2021 and 2020 were as follows: For the year ended December 31, (In thousands) 2022 2021 2019 Realized losses on equity securities sold $ ( 1,675 ) $ ( 992 ) $ ( 2,382 ) Unrealized (losses) gains on equity securities held ( 8,470 ) 2,671 6,831 Total (loss) gain recognized, net $ ( 10,145 ) $ 1,679 $ 4,449 |
Cash Equivalents and Investments held at Fair Value | The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows: Fair Value Measurements as of December 31, 2022 Using (In thousands) Fair Value Quoted Prices Significant Significant Unobservable Inputs Cash equivalents Money market funds $ 228 $ 228 $ — Available-for-sale debt securities Corporate bonds 2,462 2,462 — Municipal fixed-rate bonds 180 180 — Asset-backed bonds 795 795 — Mortgage/Agency-backed bonds 1,748 1,748 — U.S. government bonds 3,685 3,685 — Foreign government bonds 383 383 — Marketable equity securities Marketable equity securities - various industries 804 804 — Deferred compensation plan assets 22,942 22,942 — Total $ 33,227 $ 27,659 $ 5,568 $ — Fair Value Measurements as of December 31, 2021 Using (In thousands) Fair Value Quoted Prices Significant Significant Unobservable Inputs Cash equivalents Money market funds $ 652 $ 652 $ — $ — Available-for-sale debt securities Corporate bonds 10,747 — 10,747 — Municipal fixed-rate bonds 1,551 — 1,551 — Asset-backed bonds 322 — 322 — Mortgage/Agency-backed bonds 4,736 — 4,736 — U.S. government bonds 12,171 12,171 — — Foreign government bonds 539 — 539 — Marketable equity securities Marketable equity securities - various industries 12,606 12,606 — — Deferred compensation plan assets 26,935 26,935 — — Total $ 70,259 $ 52,364 $ 17,895 $ — |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | As of December 31, 2022 and 2021, inventory, net was comprised of the following: (In thousands) 2022 2021 Raw materials $ 186,346 $ 74,709 Work in process 12,087 2,143 Finished goods 229,098 63,039 Total Inventory, net $ 427,531 $ 139,891 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | As of December 31, 2022 and 2021, property, plant and equipment, net was comprised of the following: (In thousands) 2022 2021 Engineering and other equipment $ 170,785 $ 134,771 Building 82,932 68,157 Computer hardware and software 80,455 72,274 Building and land improvements 47,861 35,578 Furniture and fixtures 22,403 19,917 Land 5,364 4,575 Total Property, Plant and Equipment 409,800 335,272 Less: accumulated depreciation ( 299,101 ) ( 279,506 ) Total Property, Plant and Equipment, net $ 110,699 $ 55,766 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows: December 31, December 31, (In thousands) Classification 2022 2021 Assets Operating lease assets Other non-current assets $ 30,340 $ 4,922 Total lease asset $ 30,340 $ 4,922 Liabilities Current operating lease liability Accrued expenses and other liabilities $ 7,596 $ 1,730 Non-current operating lease liability Other non-current liabilities 22,807 3,269 Total lease liability $ 30,403 $ 4,999 |
Components of Lease Expense included in Consolidated Statements of (Loss) Income | The components of lease expense included in the Consolidated Statements of (Loss) Income were as follows: For the Year Ended December 31, (In thousands) 2022 2021 2020 Cost of revenue $ 110 $ 51 $ 113 Research and development expenses 942 1,071 1,121 Selling, general and administrative expenses 3,961 883 1,311 Total operating lease expense $ 5,013 $ 2,005 $ 2,545 |
Schedule of Maturity of Operating Lease Liabilities | As of December 31, 2022, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows: (In thousands) Amount 2023 8,992 2024 8,076 2025 6,740 2026 3,825 2027 2,865 Thereafter 4,478 Total lease payments 34,976 Less: Interest ( 4,573 ) Present value of lease liabilities $ 30,403 |
Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates | As of December 31, Weighted average remaining lease term (years) 2022 2021 Operating leases with USD functional currency 7.9 1.8 Operating leases with Euro functional currency 4.2 3.5 Weighted average discount rate Operating leases with USD functional currency 3.77 % 3.49 % Operating leases with Euro functional currency 3.70 % 1.22 % |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2022 are as follows: (In thousands) Network Solutions Services & Support Total As of December 31, 2021 $ 6,570 $ 398 $ 6,968 Goodwill from Business Combination with ADVA 272,797 77,661 350,458 Foreign currency translation adjustments 18,913 5,385 24,298 As of December 31, 2022 $ 298,280 $ 83,444 $ 381,724 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Summary of Intangible Assets | Intangible assets as of December 31, 2022 and 2021, consisted of the following: 2022 2021 (In thousands) Weighted Average Useful Life Gross Value Accumulated Net Value Gross Value Accumulated Net Value Customer relationships 10.9 $ 55,517 $ ( 12,772 ) $ 42,745 $ 20,796 $ ( 9,906 ) $ 10,890 Backlog 1.6 55,782 ( 22,725 ) 33,057 — — — Developed technology 8.5 320,364 ( 21,856 ) 298,508 8,200 ( 3,683 ) 4,517 Licensed technology 9.0 5,900 ( 3,141 ) 2,759 5,900 ( 2,486 ) 3,414 Licensing agreements 8.5 560 ( 298 ) 262 560 ( 225 ) 335 Patents 7.3 500 ( 431 ) 69 500 ( 363 ) 137 Trade names 3.0 29,066 ( 5,255 ) 23,811 210 ( 210 ) — Total $ 467,689 $ ( 66,478 ) $ 401,211 $ 36,166 $ ( 16,873 ) $ 19,293 |
Estimated Future Amortization Expense Related to Intangible Assets | As of December 31, 2022, estimated future amortization expense of intangible assets was as follows: (In thousands) Amount 2023 $ 82,080 2024 57,545 2025 46,095 2026 42,851 2027 41,491 Thereafter 131,149 Total $ 401,211 |
Hedging (Tables)
Hedging (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The fair values of the Company's derivative instruments recorded in the Condensed Consolidated Balance Sheet as of December 31, 2022 were as follows: (In thousands) Balance Sheet Location December 31, 2022 December 31, 2021 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – derivative assets Other receivables $ 11,992 $ — Foreign exchange contracts – derivative liabilities Accounts payable $ ( 633 ) $ — Total derivatives $ 11,359 $ — The change in the fair values of the Company's derivative instruments recorded in the Condensed Consolidated Statements of Income during the years ended December 31, 2022, 2021 and 2020 were as follows: (In thousands) Income Statement 2022 2021 2020 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense), net $ 10,793 $ — $ — |
Revolving Credit Agreements (Ta
Revolving Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Carrying Amount of Revolving Agreement | The carrying amounts of the Company's revolving credit agreements in its Consolidated Balance Sheets were as follows: As of December 31, (In thousands) 2022 2021 Wells Fargo credit agreement $ 60,000 $ — Nord/LB revolving line of credit 16,091 — Syndicated credit agreement working capital line of credit 10,727 — DZ bank revolving line of credit 9,118 — Wells Fargo revolving credit agreement — — Cadence revolving credit agreement — — Total revolving credit agreements $ 95,936 $ — |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Carrying Amounts of Notes Payables | The carrying amounts of the Company's notes payable in its Condensed Consolidated Balance Sheets were as follows: Fair Value as of Carrying Value as of Carrying Value as of (In thousands) December 31, 2022 December 31, 2022 December 31, 2021 Syndicated credit agreement note payable $ 24,598 $ 24,598 $ — Deutsche Bank term loan — — — Total Notes Payable $ 24,598 $ 24,598 $ — Syndicated Credit Agreement Note Payable |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 are as follows: (In thousands) 2022 2021 2020 Current Federal $ 4,572 $ 11 $ ( 10,574 ) State 88 ( 63 ) ( 329 ) International ( 4,347 ) 4,166 3,635 Total Current 313 4,114 ( 7,268 ) Deferred Federal ( 47,429 ) — — State ( 6,776 ) — — International ( 8,183 ) ( 1,784 ) ( 1,356 ) Total Deferred ( 62,388 ) ( 1,784 ) ( 1,356 ) Total Income Tax (Benefit) Expense $ ( 62,075 ) $ 2,330 $ ( 8,624 ) |
Effective Income Tax Rate Differs from Federal Statutory Rate | The effective income tax rate differs from the federal statutory rate due to the following: 2022 2021 2020 Tax provision computed at the federal statutory rate 21.00 % 21.00 % 21.00 % State income tax provision, net of federal benefit 2.60 13.33 11.10 Federal research credits 6.74 53.77 57.63 Foreign taxes 6.29 ( 4.69 ) ( 17.83 ) Tax-exempt income 0.21 3.75 1.93 Change in valuation allowance 63.92 ( 75.26 ) 44.79 Non-deductible transaction costs ( 2.74 ) ( 39.48 ) — Foreign tax credits ( 0.40 ) 0.14 17.90 Stock-based compensation ( 2.09 ) 10.74 ( 23.36 ) Withholding taxes 0.03 0.14 ( 20.83 ) Alabama law change — ( 25.39 ) — Impact of CARES Act — — 45.65 Return to accrual 0.24 9.48 — Global intangible low-taxed income ("GILTI") ( 8.08 ) ( 4.29 ) ( 0.49 ) Other, net ( 0.24 ) ( 0.19 ) 0.56 Effective Tax Rate 87.48 % ( 36.95 )% 138.05 % |
(Loss) Income Before Expense (Benefit) for Income Taxes | (Loss) income before expense (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 U.S. entities $ ( 33,720 ) $ ( 14,982 ) $ ( 12,833 ) International entities ( 37,243 ) 8,677 6,587 Total $ ( 70,963 ) $ ( 6,305 ) $ ( 6,246 ) |
Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Liabilities) | Deferred income taxes on t he Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2022 and 2021 consist of the following: (In thousands) 2022 2021 Deferred tax assets: Inventory $ 5,818 $ 9,538 Accrued expenses 7,865 3,851 Deferred compensation 5,792 7,027 Stock-based compensation 1,373 1,469 Uncertain tax positions related to state taxes and related interest 102 124 Pensions 5,952 6,061 Foreign losses 4,744 2,862 State losses and credit carry-forwards 3,516 5,914 Federal loss and research carry-forwards 64,995 21,606 Lease liabilities 4,093 1,471 Capitalized research and development expenditures 31,248 9,349 Investments 160 — Valuation allowance ( 5,201 ) ( 50,564 ) Total Deferred Tax Assets 130,457 18,708 Deferred tax liabilities: Property, plant and equipment ( 8,982 ) ( 3,590 ) Intellectual property ( 108,671 ) ( 3,230 ) Right of use lease assets ( 6,594 ) ( 1,459 ) Investments — ( 1,350 ) Total Deferred Tax Liabilities ( 124,247 ) ( 9,629 ) Net Deferred Tax Assets $ 6,210 $ 9,079 Supplemental balance sheet information related to deferred tax assets (liabilities) as of December 31, 2022 and 2021 were as follows: December 31, 2022 (In thousands) Deferred Tax Assets (Liabilities) Valuation Allowance Deferred Tax Assets (Liabilities), net Domestic $ 61,726 $ ( 3,177 ) $ 58,549 International ( 50,315 ) ( 2,024 ) ( 52,339 ) Total $ 11,411 $ ( 5,201 ) $ 6,210 December 31, 2021 (In thousands) Deferred Tax Assets Valuation Allowance Deferred Tax Assets, net Domestic $ 48,265 $ ( 48,265 ) $ — International 11,378 ( 2,299 ) 9,079 Total $ 59,643 $ ( 50,564 ) $ 9,079 |
Change in Unrecognized Income Tax Benefits | The change in the unrecognized income tax benefits for the years ended December 31, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Balance at beginning of period $ 17,836 $ 1,078 $ 1,487 Increases for tax position related to: Prior years — 17,025 4 Current year 123 136 165 Decreases for tax positions related to: Prior years ( 13 ) ( 27 ) — Expiration of applicable statute of limitations ( 61 ) ( 376 ) ( 578 ) Balance at end of period $ 17,885 $ 17,836 $ 1,078 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Benefit Plan Obligations and Funded Status | The pension benefit plan obligations and funded status as of December 31, 2022 and 2021, were as follows: (In thousands) 2022 2021 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 73,779 (1) $ 50,927 Service cost 1,426 1,229 Interest cost 1,168 339 Actuarial gain - experience ( 2,039 ) ( 750 ) Actuarial gain - assumptions ( 11,128 ) ( 3,327 ) Benefit payments ( 1,400 ) ( 756 ) Effects of foreign currency exchange rate changes ( 2,462 ) ( 3,498 ) Projected benefit obligation at end of period 59,344 44,164 Change in plan assets: Fair value of plan assets at beginning of period 55,084 (1) 32,263 Actual (loss) gain on plan assets ( 4,372 ) 2,943 Contributions 382 — Effects of foreign currency exchange rate changes ( 2,374 ) ( 2,444 ) Fair value of plan assets at end of period 48,720 32,762 Unfunded status at end of period $ ( 10,624 ) $ ( 11,402 ) (1) In connection with the Business Combination, we acquired $ 29.6 million of additional projected benefit obligations and.$ 22.3 million of plan assets whose beginning of period measurement date is July 15, 2022. |
Summary of Net Amounts Recognized in Consolidated Balance Sheets for the Unfunded Pension Liability | The net amounts recognized in the Consolidated Balance Sheets for the unfunded pension liability as of December 31, 2022 and 2021 were as follows: (In thousands) 2022 2021 Current liability $ — $ — Pension liability 10,624 11,402 Total $ 10,624 $ 11,402 |
Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive (Loss) Income | The components of net periodic pension cost, other than the service cost component, are included in other income (expense), net in the Consolidated Statements of (Loss) Income. The components of net periodic pension cost and amounts recognized in other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Net periodic benefit cost: Service cost $ 1,426 $ 1,229 $ 1,270 Interest cost 1,168 339 444 Expected return on plan assets ( 2,129 ) ( 1,842 ) ( 1,679 ) Amortization of actuarial losses 355 1,088 970 Net periodic benefit cost 820 814 1,005 Other changes in plan assets and benefit obligations Net actuarial (gain) loss ( 6,549 ) ( 4,984 ) 1,784 Amortization of actuarial losses ( 113 ) ( 825 ) ( 1,212 ) Amount recognized in other comprehensive (loss) income ( 6,662 ) ( 5,809 ) 572 Total recognized in net periodic benefit cost and other $ ( 5,842 ) $ ( 4,995 ) $ 1,577 |
Accumulated Other Comprehensive (Loss) Income | The amounts recognized in accumulated other comprehensive (loss) income as of December 31, 2022 and 2021 were as follows: (In thousands) 2022 2021 Net actuarial loss $ ( 1,073 ) $ ( 7,736 ) |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2022, 2021 and 2020 were as follows: 2022 2021 2020 Discount rate 3.24 % 1.16 % 1.00 % Rate of compensation increase 2.17 % 2.00 % 2.00 % Expected long-term rates of return 4.65 % 5.90 % 5.90 % |
Weighted-Average Assumptions Used to Determine Benefit Obligation | The weighted-average assumptions that were used to determine the benefit obligation as of December 31, 2022 and 2021: 2022 2021 2020 Discount rate 3.10 % 1.16 % 0.69 % Rate of compensation increase 2.17 % 2.00 % 2.00 % |
Schedule of Pension Benefit Payments Expected Future Service | The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants: (In thousands) 2023 $ 2,377 2024 2,303 2025 3,331 2026 3,092 2027 3,710 2028 - 2032 18,287 Total $ 33,100 |
Schedule of Cash Equivalents and Investments Held at Fair Value | We have categorized our cash equivalents and our investments held at fair value into this hierarchy as follows: Fair Value Measurements at December 31, 2022 Using (In thousands) Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 1,423 $ 1,423 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 13,256 13,256 — — Government bonds 5,490 5,490 — — Equity funds: — — — — Global equity 15,452 15,452 — — Balanced fund 5,190 5,190 — — Emerging markets 1,707 1,707 — — Large cap value 194 194 — — Global real estate fund 6,008 6,008 — — Available-for-sale securities 47,297 47,297 — — Total $ 48,720 $ 48,720 $ — $ — Fair Value Measurements at December 31, 2021 Using (In thousands) Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 801 $ 801 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 7,528 7,528 — — Government bonds 5,721 5,721 — — Equity funds: Global equity 12,170 12,170 — — Balanced fund 2,919 2,919 — — Emerging markets 2,259 2,259 — — Large cap value 235 235 — — Global real estate fund 1,129 1,129 — — Available-for-sale securities 31,961 31,961 — — Total $ 32,762 $ 32,762 $ — $ — |
Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants | The fair value of the assets held by the Trust and the amounts payable to the plan participants as of December 31, 2022 and 2021 were as follows: (In thousands) 2022 2021 Fair Value of Plan Assets Long-term investments $ 22,943 $ 26,935 Total Fair Value of Plan Assets $ 22,943 $ 26,935 Amounts Payable to Plan Participants Deferred compensation liability $ 26,668 $ 31,383 Total Amounts Payable to Plan Participants $ 26,668 $ 31,383 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income, Net of Tax by Components of Accumulated Other Comprehensive (Loss) Income | The following table presents changes in accumulated other comprehensive (loss) income, net of tax, by components of accumulated other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020: (In thousands) Unrealized Defined Foreign ASU 2018-02 Adoption (1) Total Balance as of December 31, 2019 $ ( 284 ) $ ( 9,226 ) $ ( 7,292 ) $ 385 $ ( 16,417 ) Other comprehensive (loss) income before reclassifications 749 ( 1,231 ) 4,857 — 4,375 Amounts reclassified from accumulated other comprehensive (loss) income ( 433 ) 836 — — 403 Balance as of December 31, 2020 32 ( 9,621 ) ( 2,435 ) 385 ( 11,639 ) Other comprehensive (loss) income before reclassifications ( 705 ) 3,439 ( 3,699 ) — ( 965 ) Amounts reclassified from accumulated other comprehensive (loss) income 121 569 — — 690 Balance as of December 31, 2021 ( 552 ) ( 5,613 ) ( 6,134 ) 385 ( 11,914 ) Other comprehensive (loss) income before reclassifications ( 41 ) 4,519 53,396 — 57,874 Amounts reclassified from accumulated other comprehensive (loss) income ( 243 ) 78 — — ( 165 ) Net current period other comprehensive (loss) income ( 284 ) 4,597 53,396 — 57,709 Less: Comprehensive Loss attributable to non-controlling interest, net of tax — — ( 918 ) — ( 918 ) Balance as of December 31, 2022 $ ( 836 ) $ ( 1,016 ) $ 48,180 $ 385 $ 46,713 (1) With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings. |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following tables present the details of reclassifications out of accumulated other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020: (In thousands) For the year ended December 31, Details about Accumulated Other Comprehensive (Loss) 2022 2021 2020 Affected Line Item in the Unrealized (loss) gains on available-for-sale securities: Net realized gain (loss) on sales of securities $ 328 $ ( 164 ) $ 585 Net investment gain Defined benefit plan adjustments – actuarial losses ( 113 ) ( 825 ) ( 1,212 ) (1) Total reclassifications for the period, before tax 215 ( 989 ) ( 627 ) Tax (benefit) expense ( 50 ) 299 224 Total reclassifications for the period, net of tax $ 165 $ ( 690 ) $ ( 403 ) (1) Included in the computation of net periodic pension cost. See Note 16 for additional information. |
Tax Effects Related to the Change in Each Component of Other Comprehensive (Loss) Income | The following tables present the tax effects related to the change in each component of other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020: 2022 (In thousands) Before-Tax Tax Net-of-Tax Unrealized gains (losses) on available-for-sale securities $ ( 55 ) $ 14 $ ( 41 ) Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss) ( 328 ) 85 ( 243 ) Defined benefit plan adjustments 6,549 ( 2,030 ) 4,519 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss) 113 ( 35 ) 78 Foreign currency translation adjustment 53,396 — 53,396 Total Other Comprehensive (Loss) Income $ 59,675 $ ( 1,966 ) $ 57,709 2021 (In thousands) Before-Tax Tax Net-of-Tax Unrealized gains (losses) on available-for-sale securities $ ( 953 ) $ 248 $ ( 705 ) Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss) 164 ( 43 ) 121 Defined benefit plan adjustments 4,984 ( 1,545 ) 3,439 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss) 825 ( 256 ) 569 Foreign currency translation adjustment ( 3,699 ) — ( 3,699 ) Total Other Comprehensive (Loss) Income $ 1,321 $ ( 1,596 ) $ ( 275 ) 2020 (In thousands) Before-Tax Tax Net-of-Tax Unrealized gains (losses) on available-for-sale securities $ 1,012 $ ( 263 ) $ 749 Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) income ( 585 ) 152 ( 433 ) Defined benefit plan adjustments ( 1,784 ) 553 ( 1,231 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) income 1,212 ( 376 ) 836 Foreign currency translation adjustment 4,857 — 4,857 Total Other Comprehensive (Loss) Income $ 4,712 $ 66 $ 4,778 |
Segment Information and Major_2
Segment Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenue and Gross Profit of Reportable Segments | The following table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 (In thousands) Revenue Gross Profit Revenue Gross Profit Revenue Gross Profit Network Solutions $ 916,793 $ 269,688 $ 498,834 $ 190,993 $ 438,015 $ 193,789 Services & Support 108,743 57,564 64,170 27,384 68,495 23,762 Total $ 1,025,536 $ 327,252 $ 563,004 $ 218,377 $ 506,510 $ 217,551 |
Disaggregate of Revenue by Reportable Segment and Revenue Category | The following tables disaggregate our revenue by category for the years ended December 31, 2022, 2021 and 2020: 2022 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 364,238 $ 26,216 $ 390,454 Access & Aggregation Solutions 326,934 47,068 374,002 Optical Networking Solutions 225,621 35,459 261,080 Total $ 916,793 $ 108,743 $ 1,025,536 2021 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 189,825 $ 16,385 $ 206,210 Access & Aggregation Solutions 309,009 47,785 356,794 Optical Networking Solutions — — — Total $ 498,834 $ 64,170 $ 563,004 2020 (In thousands) Network Solutions Services & Support Total Subscriber Solutions $ 163,349 $ 15,315 $ 178,664 Access & Aggregation Solutions 274,666 53,180 327,846 Optical Networking Solutions — — — Total $ 438,015 $ 68,495 $ 506,510 |
Revenue Information by Geographic Area | The following table presents revenue information by geographic area for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 United States $ 517,433 $ 374,600 $ 352,079 United Kingdom 189,685 56,355 13,799 Germany 146,797 65,229 74,882 Other international 171,621 66,820 65,750 Total $ 1,025,536 $ 563,004 $ 506,510 |
Liability for Warranty Returns
Liability for Warranty Returns (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Expense and Write-Off Activity | A summary of warranty expense and write-off activity for the years ended December 31, 2022, 2021 and 2020 is as follows: Year Ended December 31, (In thousands) 2022 2021 2020 Balance at beginning of period $ 5,403 $ 7,146 $ 8,394 Plus: ADVA acquisition 3,756 — — Plus: Amounts charged to cost and expenses 3,104 855 1,538 Plus: Foreign currency translation adjustments 334 Less: Deductions ( 5,401 ) ( 2,598 ) ( 2,786 ) Balance at end of period $ 7,196 $ 5,403 $ 7,146 |
(Loss) Earnings per Share (Tabl
(Loss) Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Calculations of Basic and Diluted (Loss) Earnings Per Share | The calculations of basic and diluted (loss) earnings per share for the years ended December 31, 2022, 2021 and 2020 are as follows: (In thousands, except for per share amounts) 2022 2021 2020 Numerator Net (Loss) Income attributable to ADTRAN Holdings, Inc. $ ( 2,037 ) $ ( 8,635 ) $ 2,378 Denominator Weighted average number of shares – basic 62,346 48,582 47,996 Effect of dilutive securities: PSUs, RSUs and restricted stock — — 292 Weighted average number of shares – diluted 62,346 48,582 48,288 (Loss) earnings per share attributable to ADTRAN Holdings, Inc. – basic $ ( 0.03 ) $ ( 0.18 ) $ 0.05 (Loss) earnings per share attributable to ADTRAN Holdings, Inc. – diluted $ ( 0.03 ) $ ( 0.18 ) $ 0.05 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Reconciliation of Restructuring Liability | A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits in the Consolidated Balance Sheets as of December 31, 2022 and 2021, is as follows: (In thousands) 2022 2021 Balance at beginning of period $ 1,514 $ 4,186 Plus: Amounts charged to cost and expense 1,629 411 Less: Amounts paid ( 2,984 ) ( 3,083 ) Balance at end of period $ 159 $ 1,514 |
Schedule of Components of Restructuring Expense | Restructuring expenses included in the Consolidated Statements of (Loss) Income are for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Network solutions - cost of revenue $ 8 $ 13 $ 220 Services & support - cost of revenue — 3 235 Cost of revenue $ 8 $ 16 $ 455 Selling, general and administrative expenses 117 221 1,832 Research and development expenses 1,504 174 3,942 Total restructuring expenses $ 1,629 $ 411 $ 6,229 The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 United States $ 2 $ 289 $ 2,234 International 1,627 122 3,995 Total restructuring expenses $ 1,629 $ 411 $ 6,229 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) IncentivePlan Countries | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) | Jul. 15, 2022 USD ($) | Dec. 31, 2019 USD ($) | |
Summary Of Significant Accounting Policy [Line Items] | ||||||
Number of countries | Countries | 100 | |||||
Adjustment during period | $ (70,963,000) | $ (6,305,000) | $ (6,246,000) | |||
Cash, uninsured amount | 100,100,000 | |||||
Number of single customer comprising more than 10% of account receivable | Customer | 3 | |||||
Asset impairments | 17,433,000 | $ 0 | 65,000 | |||
Impairment losses of long-lived assets | 0 | 0 | 0 | |||
Impairment losses of intangible assets | 0 | 0 | 0 | |||
Impairment charges recognized on goodwill | $ 0 | 0 | 0 | |||
Capitalized implementation costs, depreciation period | 10 years | |||||
Impairment charges related to capitalized implementation costs | $ 16,900,000 | 0 | 0 | |||
Period of assurance-based warranty for product defects | 90 days to five years | |||||
Liability for warranty obligations | $ 7,196,000 | 5,403,000 | 7,146,000 | $ 8,394,000 | ||
Pension liability | $ 10,624,000 | 11,402,000 | ||||
Number of stock incentive plans | IncentivePlan | 2 | |||||
Goodwill | $ 381,724,000 | 6,968,000 | $ 350,500,000 | |||
Stock-based compensation expense | $ 28,322,000 | 7,480,000 | 6,834,000 | |||
Recognition period of unvested compensation expense | 2 years 4 months 24 days | |||||
Reduction of research and development expense recognized | $ 1,100,000 | |||||
Research and development costs | 173,757,000 | 108,663,000 | 113,287,000 | |||
Effect on adoption of ASU | 110,699,000 | 55,766,000 | ||||
Effect on adoption of ASU | 66,998,000 | 30,971,000 | ||||
Tax benefit in other comprehensive (loss) income | $ 1,966,000 | 1,596,000 | (66,000) | |||
ADVA | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Equity ownership percentage | 34.70% | 36% | ||||
ASU 2021-08 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jul. 01, 2022 | |||||
Prepaid Expenses and Other Current Assets [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Current deferred costs related to prepaid and other assets | $ 1,500,000 | 700,000 | ||||
Other Non-Current Assets [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Capitalized implementation costs | $ 6,200,000 | 21,000,000 | ||||
Minimum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Maintenance service periods | 1 month | |||||
Maintenance contract period | 1 month | |||||
Maximum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Operating lease, renewal term | 5 years | |||||
Maintenance service periods | 5 years | |||||
Maintenance contract period | 5 years | |||||
Maximum [Member] | Other Non-Current Assets [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Non-current deferred costs related to other non-current assets | $ 100,000 | $ 100,000 | ||||
Building and Land Improvements [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 5 years | |||||
Building and Land Improvements [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 39 years | |||||
Office Machinery and Equipment [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 3 years | |||||
Office Machinery and Equipment [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 7 years | |||||
Engineering Machinery and Equipment [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 3 years | |||||
Engineering Machinery and Equipment [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 7 years | |||||
Computer Software [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 3 years | |||||
Computer Software [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Property, plant and equipment, estimated useful lives | 5 years | |||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Percentage of accounts receivable accounted by each customers | 11.40% | 35.80% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Percentage of accounts receivable accounted by each customers | 11.10% | 12.10% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer Three [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Percentage of accounts receivable accounted by each customers | 10.60% | 12% | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Customer [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Percentage of accounts receivable accounted by each customers | 33.10% | 59.90% | ||||
Errors in Net Investment Gain [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Adjustment during period | $ 1,500,000 | 1,500,000 | ||||
Overstatement Long-term Investment Balance at Remeasured Cost Basis [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Adjustment during period | 2,800,000 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Amortization expense | $ 3,900,000 | $ 1,000,000 | 0 | |||
Stock-based compensation expense | $ 20,844,000 | $ 4,571,000 | $ 4,036,000 |
Business Combination Agreemen_2
Business Combination Agreement - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jul. 15, 2022 USD ($) $ / shares | Aug. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | Aug. 30, 2021 € / shares shares | |
Business Acquisition [Line Items] | ||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common stock, shares outstanding | shares | 77,889,000 | 49,063,000 | ||||
Common stock, reserved for future issuance | shares | 27,994,595 | 27,994,595 | ||||
Goodwill | $ 350,500 | $ 381,724 | $ 6,968 | |||
Total revenue | 1,025,536 | 563,004 | $ 506,510 | |||
Net loss attributable to ADTRAN Holdings, Inc. | (2,037) | (8,635) | 2,378 | |||
Net loss attributable to non-controlling interest | (6,851) | |||||
Decrease in goodwill | (8,700) | |||||
Network Solutions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 298,280 | 6,570 | ||||
Total revenue | 916,793 | 498,834 | 438,015 | |||
Services & Support [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 83,444 | 398 | ||||
Total revenue | 108,743 | 64,170 | $ 68,495 | |||
Common Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of common stock exchanged | 64% | |||||
ADVA Optical Networking SE [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination date of agreement | Aug. 30, 2021 | |||||
Common stock, shares outstanding | shares | 33,957,538 | 33,957,538 | ||||
Percentage of outstanding bearer shares | 65.43% | |||||
Fair value of stock options assumed | $ 12,800 | |||||
Goodwill | 350,458 | 350,500 | ||||
Accounts receivable | 114,659 | |||||
Other receivables | 1,457 | |||||
Unpaid principal balance of account receivable | 118,500 | |||||
Unpaid principal balance of other receivable | 1,500 | |||||
Fair value of noncontrolling interest | 316,415 | |||||
Total revenue | 365,900 | |||||
Net loss attributable to ADTRAN Holdings, Inc. | $ 12,900 | |||||
Shares held by noncontrolling interest | shares | 17,941,496 | 17,941,496 | ||||
Closing share price | (per share) | $ 20.20 | $ 17.64 | € 17.58 | |||
Currency conversion rate | 1.00318 | |||||
Net loss attributable to non-controlling interest | (6,900) | |||||
ADVA Optical Networking SE [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Transaction costs incurred | 26,100 | |||||
Transaction costs related to the business combination | $ 14,200 | $ 11,900 | ||||
ADVA Optical Networking SE [Member] | Network Solutions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 272,800 | |||||
ADVA Optical Networking SE [Member] | Services & Support [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 77,700 | |||||
ADVA Optical Networking SE [Member] | Common Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issuable for each share of acquired entity | shares | 0.8244 | |||||
Percentage of common stock exchanged | 36% |
Business Combination Agreemen_3
Business Combination Agreement - Summary of Purchase Price for Business Combination (Details) - ADVA Optical Networking SE [Member] $ / shares in Units, $ in Thousands | Jul. 15, 2022 USD ($) $ / shares shares | Aug. 30, 2021 $ / shares | Aug. 30, 2021 € / shares |
Business Acquisition [Line Items] | |||
ADVA shares exchanged | shares | 33,957,538 | ||
Exchange ratio | 0.8244 | ||
ADTRAN Holdings, Inc. shares issued | shares | 27,994,595 | ||
ADTRAN Holdings, Inc. share price on July 15, 2022 | (per share) | $ 20.20 | $ 17.64 | € 17.58 |
Purchase price paid for ADVA shares | $ 565,491 | ||
Equity compensation | 12,769 | ||
Total purchase price | $ 578,260 |
Business Combination Agreemen_4
Business Combination Agreement - Summary of Purchase Price Allocation of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jul. 15, 2022 | Dec. 31, 2021 |
Net Assets: | |||
Goodwill | $ 381,724 | $ 350,500 | $ 6,968 |
ADVA Optical Networking SE [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase price | 578,260 | ||
Noncontrolling interest | 316,415 | ||
Net Assets: | |||
Cash and cash equivalents | 44,003 | ||
Accounts receivable | 114,659 | ||
Other receivables | 1,457 | ||
Inventory | 200,331 | ||
Prepaid expenses and other current assets | 28,208 | ||
Property plant and equipment | 55,480 | ||
Deferred tax assets | 1,759 | ||
Identifiable intangible assets | 403,780 | ||
Other non-current assets | 31,074 | ||
Accounts payable | (98,587) | ||
Current unearned revenue | (26,047) | ||
Accrued expenses and other liabilities | (59,600) | ||
Income tax payable, net | (4,898) | ||
Current portion of notes payable | (25,254) | ||
Tax liabilities | (1,400) | ||
Non-current unearned revenue | (11,498) | ||
Pension liability | (6,820) | ||
Other non-current liabilities | (6,094) | ||
Non-current portion of revolving credit agreements and notes payable | (15,250) | ||
Non-current lease obligations | (20,046) | ||
Deferred tax liabilities | (61,040) | ||
Total net assets acquired | 544,217 | ||
Goodwill | $ 350,500 | $ 350,458 |
Business Combination Agreemen_5
Business Combination Agreement - Summary of Fair Value of Identifiable Intangible Assets Acquired (Details) - ADVA Optical Networking SE [Member] $ in Thousands | Jul. 15, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 403,780 | |
Cost of Revenue [Member] | Network Solutions [Member] | Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated-average useful life (in years) | 8 years 6 months | [1] |
Fair value | $ 291,925 | |
Cost of Revenue [Member] | Network Solutions and Services & Support [Member] | Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated-average useful life (in years) | 1 year 4 months 24 days | [1] |
Fair value | $ 52,165 | |
Selling, General and Administrative Expenses [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated-average useful life (in years) | 10 years 6 months | [1] |
Fair value | $ 32,704 | |
Selling, General and Administrative Expenses [Member] | Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated-average useful life (in years) | 2 years 9 months 18 days | [1] |
Fair value | $ 26,986 | |
[1] Determination of the weighted average period of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the period of time the assets are expected to contribute to future cash flows. |
Business Combination Agreemen_6
Business Combination Agreement - Summary of Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combinations [Abstract] | ||
Revenue | $ 1,410,296 | $ 1,210,201 |
Net loss attributable to ADTRAN Holdings, Inc. | $ (46,204) | $ (91,423) |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 108,644 | $ 56,603 |
Restricted cash | 215 | |
Cash, cash equivalents and restricted cash | $ 108,644 | $ 56,818 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Category | Dec. 31, 2021 USD ($) | |
Revenue [Line Items] | ||
Number of categories | Category | 3 | |
Accounts receivable, allowance for credit losses | $ 49 | $ 0 |
Recognized revenue | 14,000 | 11,200 |
Maximum [Member] | ||
Revenue [Line Items] | ||
Accounts receivable, allowance for credit losses | 100 | |
Factor [Member] | Purchase Agreement [Member] | ||
Revenue [Line Items] | ||
Accounts receivable sold | 14,900 | |
Factor [Member] | Purchase Agreement [Member] | Interest Expense [Member] | ||
Revenue [Line Items] | ||
Cost of receivables | 300 | |
Factor [Member] | Purchase Agreement [Member] | Maximum [Member] | ||
Revenue [Line Items] | ||
Accounts receivable, allowance for credit losses | 100 | |
Factor [Member] | Purchase Agreement [Member] | Other Assets [Member] | ||
Revenue [Line Items] | ||
Accounts receivable gross | 1,200 | |
Contractual Maintenance Agreements, Contractual SaaS and Subscription Services and Hardware Orders [Member] | ||
Revenue [Line Items] | ||
Remaining performance obligations | $ 277,200 | $ 101,100 |
Revenue - Disaggregate of Reven
Revenue - Disaggregate of Revenue by Reportable Segment and Revenue Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 1,025,536 | $ 563,004 | $ 506,510 |
Subscriber Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 390,454 | 206,210 | 178,664 |
Access & Aggregation Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 374,002 | 356,794 | 327,846 |
Optical Networking Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 261,080 | ||
Network Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 916,793 | 498,834 | 438,015 |
Network Solutions [Member] | Subscriber Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 364,238 | 189,825 | 163,349 |
Network Solutions [Member] | Access & Aggregation Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 326,934 | 309,009 | 274,666 |
Network Solutions [Member] | Optical Networking Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 225,621 | ||
Services & Support [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 108,743 | 64,170 | 68,495 |
Services & Support [Member] | Subscriber Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 26,216 | 16,385 | 15,315 |
Services & Support [Member] | Access & Aggregation Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 47,068 | $ 47,785 | 53,180 |
Services & Support [Member] | Optical Networking Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 35,459 |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-27 | Dec. 31, 2022 |
Revenue [Line Items] | |
Remaining performance obligations, percentage | 66% |
Remaining performance obligations, period | 12 months |
Revenue - Information about Rec
Revenue - Information about Receivable, Contract Assets, and Unearned Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 279,435 | $ 158,742 |
Contract assets | 1,852 | 464 |
Unearned revenue | 41,193 | 17,737 |
Non-current unearned revenue | $ 19,239 | $ 9,271 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 28,322 | $ 7,480 | $ 6,834 |
Tax benefit for expense associated with non-qualified stock options, PSUs, RSUs and restricted stock | (5,152) | (1,849) | (1,629) |
Total stock-based compensation expense, net of tax | 23,170 | 5,631 | 5,205 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 2,876 | 543 | 426 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 20,844 | 4,571 | 4,036 |
Research and Development Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 4,602 | 2,366 | 2,372 |
Stock-based Compensation Expense Included in Operating Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 25,446 | $ 6,937 | $ 6,408 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Incentive Program Descriptions) - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2022 | Jan. 31, 2015 | |
PSUs, RSUs and Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
2015 Employee Stock Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of additional shares of common stock granted | 0 | |
Number of shares of common stock authorized | 7,700,000 | |
Multiplier used when issuing PSUs, restricted stock and RSUs | 2.5 | |
Vesting period | 4 years | |
Contractual term | 10 years | |
2015 Employee Stock Incentive Plan [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expiration date of options | 2025 | |
2015 Employee Stock Incentive Plan [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expiration date of options | 2026 | |
2010 Directors Stock Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of additional shares of common stock granted | 0 | |
Number of shares of common stock authorized | 500,000 | |
Contractual term | 10 years | |
Expiration date of options | 2019 | |
Previous Stock Incentive Plans [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of additional shares of common stock granted | 0 | |
2020 Employee Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 2,800,000 | |
Multiplier used when issuing PSUs, restricted stock and RSUs | 1 | |
Contractual term | 10 years | |
2020 Employee Incentive Plan [Member] | PSUs, RSUs and Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
2020 Employee Incentive Plan [Member] | Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
2015 Employee Incentive Plan to 2020 Employee Incentive Plan [Member] | PSUs, RSUs and Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Forfeiture of stock increase in issuance of common stock | 2.5 | |
2020 Directors Stock Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 400,000 | |
Multiplier used when issuing PSUs, restricted stock and RSUs | 1 | |
Forfeiture of stock increase in issuance of common stock | 1 | |
Contractual term | 10 years | |
2006 Employee Stock Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 13,000,000 | |
Vesting period | 4 years | |
Contractual term | 10 years | |
2006 Employee Stock Incentive Plan [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expiration date of options | 2022 | |
2006 Employee Stock Incentive Plan [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expiration date of options | 2024 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares | 1,930 |
Number of Shares, PSUs, RSUs and restricted stock granted | shares | 645 |
Number of Shares, PSUs, RSUs and restricted stock vested | shares | (1,440) |
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares | (49) |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares | 1,086 |
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares | $ 14.11 |
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares | 20.56 |
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares | 12.81 |
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares | 14.22 |
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares | $ 17.54 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Weighted-Average Assumptions and Value of Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 45% | ||
Risk-free interest rate | 3% | ||
Expected dividend yield | 1.77% | ||
Expected life (in years) | 2 years 4 months 24 days | ||
Market-Based PSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Estimated fair value per share | $ 24.01 | $ 26.07 | $ 14.43 |
Expected volatility | 45.77% | 53.27% | 51.88% |
Risk-free interest rate | 4.28% | 0.85% | 0.24% |
Expected dividend yield | 1.76% | 1.63% | 2.85% |
Stock-Based Compensation (PSUs,
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||
Jul. 15, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 22, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share granted | 645 | ||||
Recognition period of non-vested compensation cost | 2 years 4 months 24 days | ||||
Executive Officers and Certain Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share granted | 300 | ||||
ADVA Optical Networking SE [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of market based PSU awards converted to time based RSU awards | 300 | ||||
Recognition period of non-vested compensation cost | 1 year 2 months 1 day | ||||
Options available for issuance under shareholders-approved equity plan | 2,100 | ||||
Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options available for issuance under shareholders-approved equity plan | 2,300 | ||||
Performance Stock Units (PSUs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Share granted | 300 | 300 | |||
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 1 year | 2 years | 3 years | ||
Performance Stock Units (PSUs) [Member] | Minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of performance stock units granted | 0% | ||||
Performance Stock Units (PSUs) [Member] | Minimum [Member] | Executive Officers and Certain Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of performance stock units granted | 0% | 0% | 0% | ||
Performance Stock Units (PSUs) [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of performance stock units granted | 150% | ||||
Performance Stock Units (PSUs) [Member] | Maximum [Member] | Executive Officers and Certain Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of performance stock units granted | 142.80% | 142.80% | 142.80% | ||
PSUs, RSUs and Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Market-Based PSUs, RSUs and Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to other than options | $ 15.8 | ||||
Recognition period of non-vested compensation cost | 2 years 3 months | ||||
Stock Options, PSUs, RSUs or Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options available for issuance under shareholders-approved equity plan | 3,300 | ||||
Time-Based RSUs [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to other than options | $ 17.8 | ||||
Time-Based RSUs [Member] | ADVA Optical Networking SE [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to other than options | $ 1.4 | ||||
Recognition period of non-vested compensation cost | 1 year 6 months 25 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jul. 15, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of Options, Stock options outstanding, Beginning Balance | 1,721 | |||
Number of Options, Stock options exercised | (519) | |||
Number of Options, Stock options forfeited | (10) | |||
Number of Options, Stock options expired | (138) | |||
Number of Options, Stock options outstanding, Ending Balance | 3,148 | 3,148 | 1,721 | |
Number of Options, Stock options exercisable | 1,711 | 1,711 | ||
Weighted Average Exercise Price, Stock options outstanding, Beginning Balance | $ 19.37 | |||
Weighted Average Exercise Price, Stock options exercised | 15.70 | |||
Weighted Average Exercise Price, Stock options forfeited | 10.28 | |||
Weighted Average Exercise Price, Stock options expired | 22.73 | |||
Weighted Average Exercise Price, Stock options outstanding, Ending Balance | $ 14.37 | 14.37 | $ 19.37 | |
Weighted Average Exercise Price, Stock options exercisable | $ 15.95 | $ 15.95 | ||
Weighted Avg. Remaining Contractual Life in Years, Stock options outstanding | 3 years 5 months 1 day | 2 years 4 months 20 days | ||
Weighted Avg. Remaining Contractual Life in Years, Stock options exercisable | 1 year 11 months 12 days | |||
Aggregate Intrinsic Value, Stock options outstanding | $ 16,251 | $ 16,251 | $ 6,669 | |
Aggregate Intrinsic Value, Stock options exercisable | $ 7,104 | $ 7,104 | ||
ADVA Optical Networking SE [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of Options, Stock options outstanding, Beginning Balance | 2,745 | |||
Number of Stock Options, Stock options replaced | (2,550) | 2,094 | ||
Number of Options, Stock options exercised | (102) | |||
Number of Options, Stock options forfeited | (12) | |||
Number of Options, Stock options outstanding, Ending Balance | 2,745 | 81 | 81 | |
Number of Options, Stock options exercisable | 27 | 27 | ||
Weighted Average Exercise Price, Stock options outstanding, Beginning Balance | $ 9.09 | |||
Weighted Avg. Exercise Price, Stock options replaced | 9.80 | $ 11.12 | ||
Weighted Average Exercise Price, Stock options exercised | 8.02 | |||
Weighted Average Exercise Price, Stock options forfeited | 9.57 | |||
Weighted Average Exercise Price, Stock options outstanding, Ending Balance | $ 9.09 | 8.58 | 8.58 | |
Weighted Average Exercise Price, Stock options exercisable | $ 7.37 | $ 7.37 | ||
Weighted Avg. Remaining Contractual Life in Years, Stock options outstanding | 4 years 7 months 6 days | 4 years | ||
Weighted Avg. Remaining Contractual Life in Years, Stock options exercisable | 2 years 4 months 20 days | |||
Aggregate Intrinsic Value, Stock options outstanding | $ 27,205 | $ 1,222 | $ 1,222 | |
Aggregate Intrinsic Value, Stock options exercisable | $ 432 | $ 432 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Stock Options Outstanding (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
ADVA Optical Networking SE [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock option surrendered, exchange ratio | 0.8244 | 0.8244 |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 22, 2022 | Jul. 15, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized compensation expense related to stock options | $ 8,300 | $ 8,300 | ||||
Recognition period of unvested compensation expense | 2 years 4 months 24 days | |||||
Aggregate intrinsic value based on fair market value | $ 16,251 | $ 16,251 | $ 6,669 | |||
Total pre-tax intrinsic value of options exercised | $ 4,000 | |||||
Weighted-average estimated fair value per share of stock options granted to employees | $ 5.81 | |||||
Number of Stock options, granted | 0 | 0 | ||||
Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options available for issuance under shareholders-approved equity plan | 2,300,000 | 2,300,000 | ||||
ADVA Optical Networking SE [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized compensation expense related to stock options | $ 100 | $ 100 | ||||
Recognition period of unvested compensation expense | 1 year 2 months 1 day | |||||
Options available for issuance under shareholders-approved equity plan | 2,100,000 | |||||
Aggregate intrinsic value based on fair market value | 1,222 | $ 1,222 | $ 27,205 | |||
Total pre-tax intrinsic value of options exercised | $ 1,600 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jul. 15, 2022 | Dec. 31, 2021 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding at 12/31/22 | 3,148 | 1,721 | |
Options Exercisable at 12/31/22 | 1,711 | ||
Weighted Average Exercise Price, Options exercisable | $ 15.95 | ||
ADVA Optical Networking SE [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding at 12/31/22 | 81 | 2,745 | |
Options Exercisable at 12/31/22 | 27 | ||
Weighted Average Exercise Price, Options exercisable | $ 7.37 | ||
$6.06 - 8.67 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 6.06 | ||
Upper Range Limit | $ 8.67 | ||
Options Outstanding at 12/31/22 | 755 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 3 years 2 months 15 days | ||
Weighted Average Exercise Price, Options Outstanding | $ 7.37 | ||
Options Exercisable at 12/31/22 | 320 | ||
Weighted Average Exercise Price, Options exercisable | $ 6.47 | ||
$8.68 - 13.74 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 8.68 | ||
Upper Range Limit | $ 13.74 | ||
Options Outstanding at 12/31/22 | 833 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 4 years 7 months 24 days | ||
Weighted Average Exercise Price, Options Outstanding | $ 11.45 | ||
Options Exercisable at 12/31/22 | 207 | ||
Weighted Average Exercise Price, Options exercisable | $ 9.63 | ||
$13.75 - 17.15 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 13.75 | ||
Upper Range Limit | $ 17.15 | ||
Options Outstanding at 12/31/22 | 427 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 3 years 3 months 7 days | ||
Weighted Average Exercise Price, Options Outstanding | $ 15.33 | ||
Options Exercisable at 12/31/22 | 368 | ||
Weighted Average Exercise Price, Options exercisable | $ 15.33 | ||
$17.16 - $121.36 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 17.16 | ||
Upper Range Limit | $ 21.36 | ||
Options Outstanding at 12/31/22 | 679 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 3 years 11 months 1 day | ||
Weighted Average Exercise Price, Options Outstanding | $ 19.02 | ||
Options Exercisable at 12/31/22 | 369 | ||
Weighted Average Exercise Price, Options exercisable | $ 18.97 | ||
$21.37 - $23.64 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 21.37 | ||
Upper Range Limit | $ 23.64 | ||
Options Outstanding at 12/31/22 | 454 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 9 months 29 days | ||
Weighted Average Exercise Price, Options Outstanding | $ 23.64 | ||
Options Exercisable at 12/31/22 | 447 | ||
Weighted Average Exercise Price, Options exercisable | $ 23.64 | ||
Euro 4.98 - Euro 7.05 [Member] | ADVA Optical Networking SE [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 4.98 | ||
Upper Range Limit | $ 7.05 | ||
Options Outstanding at 12/31/22 | 35 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 3 years 6 months 7 days | ||
Weighted Average Exercise Price, Options Outstanding | $ 6.97 | ||
Options Exercisable at 12/31/22 | 9 | ||
Weighted Average Exercise Price, Options exercisable | $ 5.34 | ||
Euro 7.06 - Euro 8.70 [Member] | ADVA Optical Networking SE [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 7.06 | ||
Upper Range Limit | $ 8.70 | ||
Options Outstanding at 12/31/22 | 18 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 2 years 7 months 6 days | ||
Weighted Average Exercise Price, Options Outstanding | $ 8.41 | ||
Options Exercisable at 12/31/22 | 18 | ||
Weighted Average Exercise Price, Options exercisable | $ 8.41 | ||
Euro 8.71 - Euro 15.68 [Member] | ADVA Optical Networking SE [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Lower Range Limit | 8.71 | ||
Upper Range Limit | $ 15.68 | ||
Options Outstanding at 12/31/22 | 28 | ||
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 5 years 5 months 23 days | ||
Weighted Average Exercise Price, Options Outstanding | $ 10.73 |
Investments - Debt Securities a
Investments - Debt Securities and Other Investments, Included on Consolidated Balance Sheet and Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 9,671 | $ 30,199 |
Gross Unrealized Gains | 9 | 38 |
Gross Unrealized Losses | (427) | (171) |
Fair Value | 9,253 | 30,066 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,538 | 10,776 |
Gross Unrealized Gains | 5 | 6 |
Gross Unrealized Losses | (81) | (35) |
Fair Value | 2,462 | 10,747 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 185 | 1,553 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (5) | (4) |
Fair Value | 180 | 1,551 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 818 | 322 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | (24) | (3) |
Fair Value | 795 | 322 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,853 | 4,754 |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | (105) | (33) |
Fair Value | 1,748 | 4,736 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,870 | 12,251 |
Gross Unrealized Gains | 3 | 12 |
Gross Unrealized Losses | (188) | (92) |
Fair Value | 3,685 | 12,171 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 407 | 543 |
Gross Unrealized Losses | (24) | (4) |
Fair Value | $ 383 | $ 539 |
Investments - Contractual Matur
Investments - Contractual Maturities of Debt Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Fair Value/Carrying Value | $ 9,253 | $ 30,066 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 1,450 | |
Two to three years | 1,012 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 2,462 | 10,747 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 180 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 180 | 1,551 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 96 | |
Two to three years | 186 | |
Three to five years | 335 | |
More than ten years | 178 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 795 | 322 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 162 | |
Two to three years | 598 | |
Three to five years | 253 | |
Five to ten years | 317 | |
More than ten years | 418 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 1,748 | 4,736 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 160 | |
One to two years | 2,787 | |
Two to three years | 617 | |
Three to five years | 121 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 3,685 | 12,171 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 276 | |
Two to three years | 107 | |
Available-for-sale debt securities, Fair Value/Carrying Value | $ 383 | $ 539 |
Investments - Gross Realized Ga
Investments - Gross Realized Gains and Losses on Sale of Debt Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains on debt securities | $ 17 | $ 241 | $ 459 |
Gross realized losses on debt securities | (1,211) | (159) | (58) |
Total (loss) gain recognized, net | $ (1,194) | $ 82 | $ 401 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investments [Line Items] | |||
Purchase an available-for-sale debt with credit deterioration | $ 0 | $ 0 | $ 0 |
Asset impairment | $ 17,433,000 | $ 0 | $ 65,000 |
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member] | |||
Schedule of Investments [Line Items] | |||
Investment concentration risk percentage | 5% |
Investments - Breakdown of Inve
Investments - Breakdown of Investments with Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | $ 4,931 | $ 21,974 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (182) | (171) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 3,168 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (245) | |
Total Fair Value | 8,100 | 21,974 |
Total Unrealized Losses | (427) | (171) |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 1,367 | 6,795 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (39) | (35) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 583 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (42) | |
Total Fair Value | 1,950 | 6,795 |
Total Unrealized Losses | (81) | (35) |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 1,129 | |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (4) | |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 178 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (5) | |
Total Fair Value | 180 | 1,129 |
Total Unrealized Losses | (5) | (4) |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 524 | 198 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (14) | (3) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 117 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (10) | |
Total Fair Value | 641 | 198 |
Total Unrealized Losses | (24) | (3) |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 825 | 3,006 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (23) | (33) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 844 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (82) | |
Total Fair Value | 1,668 | 3,006 |
Total Unrealized Losses | (105) | (33) |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 2,215 | 10,552 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (106) | (92) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 1,063 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (82) | |
Total Fair Value | 3,278 | 10,552 |
Total Unrealized Losses | (188) | (92) |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 294 | |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (4) | |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 383 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (24) | |
Total Fair Value | 383 | 294 |
Total Unrealized Losses | $ (24) | $ (4) |
Investments - Realized and Unre
Investments - Realized and Unrealized Gains and Losses for Marketable Equity Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized losses on equity securities sold | $ (1,675) | $ (992) | $ (2,382) |
Unrealized (losses) gains on equity securities held | (8,470) | 2,671 | 6,831 |
Total (loss) gain recognized, net | $ (10,145) | $ 1,679 | $ 4,449 |
Investments - Cash Equivalents
Investments - Cash Equivalents and Investments held at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | $ 9,253 | $ 30,066 |
Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 33,227 | 70,259 |
Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 27,659 | 52,364 |
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 5,568 | 17,895 |
Money Market Funds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 228 | 652 |
Money Market Funds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 228 | 652 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 2,462 | 10,747 |
Corporate Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 2,462 | 10,747 |
Corporate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 2,462 | 10,747 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 180 | 1,551 |
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 180 | 1,551 |
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 180 | 1,551 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 795 | 322 |
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 795 | 322 |
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 795 | 322 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 1,748 | 4,736 |
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 1,748 | 4,736 |
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 1,748 | 4,736 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 3,685 | 12,171 |
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 3,685 | 12,171 |
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 3,685 | 12,171 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 383 | 539 |
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 383 | 539 |
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities | 383 | 539 |
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable equity securities | 804 | 12,606 |
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable equity securities | 804 | 12,606 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable equity securities | 22,942 | 26,935 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable equity securities | $ 22,942 | $ 26,935 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 186,346 | $ 74,709 |
Work in process | 12,087 | 2,143 |
Finished goods | 229,098 | 63,039 |
Total Inventory, net | $ 427,531 | $ 139,891 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 57 | $ 44.6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Engineering and other equipment | $ 170,785 | $ 134,771 |
Building | 82,932 | 68,157 |
Computer hardware and software | 80,455 | 72,274 |
Building and land improvements | 47,861 | 35,578 |
Furniture and fixtures | 22,403 | 19,917 |
Land | 5,364 | 4,575 |
Total Property, Plant and Equipment | 409,800 | 335,272 |
Less: accumulated depreciation | (299,101) | (279,506) |
Total Property, Plant and Equipment, net | $ 110,699 | $ 55,766 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Asset impairment | $ 17,433,000 | $ 0 | $ 65,000 |
Depreciation | 20,900,000 | $ 12,000,000 | $ 12,200,000 |
Software and Web Site Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment | $ 500,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessor and Lessee Lease Description [Line Items] | |||
Operating lease, option to extend, existence | true | ||
Operating lease, option to terminate, existence | true | ||
Variable lease cost | $ 0.6 | $ 0.5 | $ 0.7 |
Future operating lease payments relating to extension of lease term | $ 4.4 | ||
Minimum [Member] | |||
Lessor and Lessee Lease Description [Line Items] | |||
Operating lease, remaining lease terms | 1 month | ||
Operating lease, options to terminate term | 3 months | ||
Maximum [Member] | |||
Lessor and Lessee Lease Description [Line Items] | |||
Operating lease, remaining lease terms | 119 months | ||
Operating lease, renewal term | 5 years | ||
Short-term lease cost | $ 0.1 | $ 0.1 | $ 0.1 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease assets | $ 30,340 | $ 4,922 |
Operating lease, right-of-use asset, statement of financial position [extensible list] | Other non-current assets | Other non-current assets |
Liabilities | ||
Current operating lease liability | $ 7,596 | $ 1,730 |
Operating lease, liability, current, statement of financial position [extensible list] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Non-current operating lease liability | $ 22,807 | $ 3,269 |
Operating lease, liability, noncurrent, statement of financial position [extensible list] | Non-current lease obligations | Non-current lease obligations |
Total lease liability | $ 30,403 | $ 4,999 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense included in Consolidated Statements of (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessor Lease Description [Line Items] | |||
Total operating lease expense | $ 5,013 | $ 2,005 | $ 2,545 |
Cost of Sales [Member] | |||
Lessor Lease Description [Line Items] | |||
Total operating lease expense | 110 | 51 | 113 |
Research and Development Expenses [Member] | |||
Lessor Lease Description [Line Items] | |||
Total operating lease expense | 942 | 1,071 | 1,121 |
Selling, General and Administrative Expenses [Member] | |||
Lessor Lease Description [Line Items] | |||
Total operating lease expense | $ 3,961 | $ 883 | $ 1,311 |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2023 | $ 8,992 | |
2024 | 8,076 | |
2025 | 6,740 | |
2026 | 3,825 | |
2027 | 2,865 | |
Thereafter | 4,478 | |
Total lease payments | 34,976 | |
Less: Interest | (4,573) | |
Present value of lease liabilities | $ 30,403 | $ 4,999 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
USD | ||
Weighted average remaining lease term (years) | ||
Operating leases with functional currency | 7 years 10 months 24 days | 1 year 9 months 18 days |
Weighted average discount rate | ||
Operating leases with functional currency | 3.77% | 3.49% |
Euro | ||
Weighted average remaining lease term (years) | ||
Operating leases with functional currency | 4 years 2 months 12 days | 3 years 6 months |
Weighted average discount rate | ||
Operating leases with functional currency | 3.70% | 1.22% |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | $ 6,968 |
Goodwill from Business Combination with ADVA | 350,458 |
Foreign currency translation adjustments | 24,298 |
Goodwill, Ending balance | 381,724 |
Network Solutions [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | 6,570 |
Goodwill from Business Combination with ADVA | 272,797 |
Foreign currency translation adjustments | 18,913 |
Goodwill, Ending balance | 298,280 |
Services & Support [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning balance | 398 |
Goodwill from Business Combination with ADVA | 77,661 |
Foreign currency translation adjustments | 5,385 |
Goodwill, Ending balance | $ 83,444 |
Goodwill (Additional Informatio
Goodwill (Additional Information) (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 15, 2022 | |
Goodwill [Line Items] | ||||
Impairment charges related to goodwill | $ 0 | $ 0 | $ 0 | |
Goodwill | 381,724,000 | $ 6,968,000 | $ 350,500,000 | |
ADVA | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 350,500,000 | $ 350,458,000 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Value | $ 467,689 | $ 36,166 |
Accumulated Amortization | (66,478) | (16,873) |
Net Value | $ 401,211 | 19,293 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in years) | 10 years 10 months 24 days | |
Gross Value | $ 55,517 | 20,796 |
Accumulated Amortization | (12,772) | (9,906) |
Net Value | $ 42,745 | 10,890 |
Backlog [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in years) | 1 year 7 months 6 days | |
Gross Value | $ 55,782 | |
Accumulated Amortization | (22,725) | |
Net Value | $ 33,057 | |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in years) | 8 years 6 months | |
Gross Value | $ 320,364 | 8,200 |
Accumulated Amortization | (21,856) | (3,683) |
Net Value | $ 298,508 | 4,517 |
Licensed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in years) | 9 years | |
Gross Value | $ 5,900 | 5,900 |
Accumulated Amortization | (3,141) | (2,486) |
Net Value | $ 2,759 | 3,414 |
Licensing Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in years) | 8 years 6 months | |
Gross Value | $ 560 | 560 |
Accumulated Amortization | (298) | (225) |
Net Value | $ 262 | 335 |
Patent [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in years) | 7 years 3 months 18 days | |
Gross Value | $ 500 | 500 |
Accumulated Amortization | (431) | (363) |
Net Value | $ 69 | 137 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in years) | 3 years | |
Gross Value | $ 29,066 | 210 |
Accumulated Amortization | (5,255) | $ (210) |
Net Value | $ 23,811 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 15, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Impairment losses of long-lived assets | $ 0 | $ 0 | $ 0 | |
Impairment losses of intangible assets | 0 | 0 | 0 | |
Amortization expense | $ 47,300,000 | $ 4,100,000 | $ 4,400,000 | |
ADVA | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets recongnized | $ 403,780,000 |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023 | $ 82,080 | |
2024 | 57,545 | |
2025 | 46,095 | |
2026 | 42,851 | |
2027 | 41,491 | |
Thereafter | 131,149 | |
Net Value | $ 401,211 | $ 19,293 |
Hedging - Additional Informatio
Hedging - Additional Information (Detail) $ in Millions | Dec. 31, 2022 ForwardContracts | Nov. 03, 2022 USD ($) |
Foreign Exchange Forward [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of forward rate contracts outstanding | ForwardContracts | 47 | |
Cross-Currency Swap Arrangement [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Aggregate notional amount | $ 160 | |
Cross-Currency Swap Arrangement [Member] | Eight Quarterly Tranches [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Aggregate notional amount | $ 20 | |
Cross-Currency Swap Arrangement [Member] | Minimum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Aggregate notional amount, daily fixed forward conversion rate | 0.98286 | |
Cross-Currency Swap Arrangement [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Aggregate notional amount, daily fixed forward conversion rate | 1.03290 |
Hedging - Schedule of Fair Valu
Hedging - Schedule of Fair Values of Derivative Instruments (Detail) - Derivatives Not Designated as Hedging Instruments [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Other income (expense), net [Member] | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Foreign exchange contracts | $ (10,793) |
Level 2 [Member] | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Total derivatives | 11,359 |
Level 2 [Member] | Other Receivables [Member] | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Foreign exchange contracts - derivative assets | 11,992 |
Level 2 [Member] | Accounts Payable [Member] | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Foreign exchange contracts - derivative liabilities | $ (633) |
Revolving Credit Agreements - C
Revolving Credit Agreements - Carrying Amount of Revolving Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Aug. 08, 2022 |
Line of Credit Facility [Line Items] | ||
Revolving credit agreements | $ 95,936 | |
Wells Fargo Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit agreements | 60,000 | |
Nord/LB Revolving Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit agreements | 16,091 | $ 16,100 |
Syndicated Credit Agreement Working Capital Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit agreements | 10,727 | |
DZ Bank Revolving Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit agreements | $ 9,118 |
Revolving Credit Agreements - A
Revolving Credit Agreements - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||||||||
Aug. 08, 2022 USD ($) | Aug. 05, 2022 | Dec. 31, 2024 | Sep. 30, 2024 | Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2023 USD ($) | Jan. 16, 2023 USD ($) | Jul. 18, 2022 USD ($) | May 19, 2022 USD ($) | Apr. 01, 2022 USD ($) | Sep. 30, 2018 USD ($) | |
Line Of Credit Facility [Line Items] | |||||||||||||
Weighted average interest rate | 4.12% | ||||||||||||
Revolving line of credit | $ 95,936,000 | ||||||||||||
Repayment of debt under revolving credit agreements | $ 48,000,000 | $ 10,000,000 | |||||||||||
Debt instrument default interest rate percentage | 2% | ||||||||||||
Daily Simple SOFR [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Credit facility, floor rate | 0% | ||||||||||||
EURIBOR [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Credit facility, floor rate | 0% | ||||||||||||
Maximum [Member] | Daily Simple SOFR [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 2.15% | ||||||||||||
Maximum [Member] | Base Rate [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 1.25% | ||||||||||||
Maximum [Member] | EURIBOR [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 2.25% | ||||||||||||
Minimum [Member] | Daily Simple SOFR [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 1.40% | ||||||||||||
Minimum [Member] | Base Rate [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 0.50% | ||||||||||||
Minimum [Member] | EURIBOR [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 1.50% | ||||||||||||
Wells Fargo Credit Agreement [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Revolving line of credit | $ 60,000,000 | ||||||||||||
Line of credit facility maturity and frequency of payment and borrowing frequency | in tranches that mature during the first quarter of 2023 and can either be repaid or borrowed again for a one month, three month or six month period. | ||||||||||||
Commitment fee percentage | 0.25% | ||||||||||||
Net leverage ratio | 3 | ||||||||||||
Line of credit maturity period month and year | 2027-07 | ||||||||||||
Wells Fargo Credit Agreement [Member] | Subsequent Event [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Available for future borrowings | $ 198,700,000 | ||||||||||||
Wells Fargo Credit Agreement [Member] | Daily Simple SOFR [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 1% | ||||||||||||
Wells Fargo Credit Agreement [Member] | Federal Reserve Bank Advances [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 1% | ||||||||||||
Nord/LB Revolving Line of Credit [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Revolving line of credit | $ 16,100,000 | $ 16,091,000 | |||||||||||
Line of credit maturity period month and year | 2023-08 | ||||||||||||
Debt cover ratio | 2.75 | ||||||||||||
Available for future borrowings | 0 | ||||||||||||
Nord/LB Revolving Line of Credit [Member] | Euro Short Term Rate [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Applicable margin rate | 1.40% | ||||||||||||
Syndicated Credit Agreement Working Capital Line of Credit [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Revolving line of credit | 10,727,000 | ||||||||||||
DZ Bank Money Market Facility [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Revolving line of credit | $ 9,100,000 | ||||||||||||
Interest rate | 2.80% | ||||||||||||
Available for future borrowings | $ 0 | ||||||||||||
Deutsche Bank revolving line of credit [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Revolving line of credit | 9,118,000 | ||||||||||||
Deutsche Bank revolving line of credit [Member] | Subsequent Event [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Revolving line of credit | $ 9,100,000 | ||||||||||||
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Secured revolving credit facility amount | 100,000,000 | $ 100,000,000 | |||||||||||
Credit facility, average outstanding amount | 21,300,000 | ||||||||||||
Revolving line of credit | 60,000,000 | ||||||||||||
Letters of credit may be issued | 25,000,000 | ||||||||||||
Available for future borrowings | 18,700,000 | ||||||||||||
Future borrowings | 25,000,000 | ||||||||||||
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | Subsequent Event [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Revolving line of credit | 180,000,000 | $ 187,500,000 | |||||||||||
Repayment of debt under revolving credit agreements | 7,500,000 | ||||||||||||
Available for future borrowings | $ 198,700,000 | ||||||||||||
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | Maximum [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Credit agreement current borrowing capacity | $ 400,000,000 | ||||||||||||
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | Maximum [Member] | Subsequent Event [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Credit agreement current borrowing capacity | $ 400,000,000 | ||||||||||||
Bayerische Landesbank and Deutsche Bank [Member] | Syndicated Credit Agreement Working Capital Line of Credit [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Secured revolving credit facility amount | $ 10,700,000 | ||||||||||||
Applicable margin rate | 1.35% | ||||||||||||
Revolving line of credit | $ 10,700,000 | ||||||||||||
Available for future borrowings | 0 | ||||||||||||
Wells Fargo Bank [Member] | Secured Revolving Credit Facility [Member] | Revolving Credit and Security Agreement (The "Cadence Revolving Credit Agreement") [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Repayment of debt under revolving credit agreements | 10,000,000 | ||||||||||||
Wells Fargo Bank [Member] | Secured Revolving Credit Facility [Member] | Revolving Credit Agreement [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Secured revolving credit facility amount | $ 25,000,000 | ||||||||||||
Cadence Bank [Member] | Secured Revolving Credit Facility [Member] | Revolving Credit and Security Agreement (The "Cadence Revolving Credit Agreement") [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Secured revolving credit facility amount | $ 25,000,000 | ||||||||||||
Repayment of debt under revolving credit agreements | $ 18,000,000 | ||||||||||||
Scenario Forecast [Member] | Wells Fargo Credit Agreement [Member] | |||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||
Net leverage ratio | 2.75 | 3.25 |
Alabama State Industrial Develo
Alabama State Industrial Development Authority Financing - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | |
Repayment of bond | $ 24,600 |
Notes Payable - Carrying Amount
Notes Payable - Carrying Amounts of Note Payables (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Fair Value | $ 24,598 |
Carrying Value | 24,598 |
Syndicated Credit Agreement Note Payable [Member] | |
Debt Instrument [Line Items] | |
Fair Value | 24,598 |
Carrying Value | $ 24,598 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2019 | Dec. 31, 2022 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||
Notes Payable | $ 24,598 | ||
Revolving line of credit | 95,936 | ||
Syndicated Credit Agreement Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Notes Payable | 24,598 | ||
Deutsche Bank [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 9,800 | ||
Deutsche Bank [Member] | EURIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin rate | 1.10% | ||
Bayerische Landesbank and Deutsche Bank [Member] | Syndicated Credit Agreement Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable borrowings | $ 63,700 | ||
Notes Payable | $ 24,600 | ||
Applicable margin rate | 2.49% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 4,572 | $ 11 | $ (10,574) |
State | 88 | (63) | (329) |
International | (4,347) | 4,166 | 3,635 |
Total Current | 313 | 4,114 | (7,268) |
Deferred | |||
Federal | (47,429) | ||
State | (6,776) | ||
International | (8,183) | (1,784) | (1,356) |
Total Deferred | (62,388) | (1,784) | (1,356) |
Total Income Tax Expense (Benefit) | $ (62,075) | $ 2,330 | $ (8,624) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Differs from Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax provision computed at the federal statutory rate | 21% | 21% | 21% |
State income tax provision, net of federal benefit | 2.60% | 13.33% | 11.10% |
Federal research credits | 6.74% | 53.77% | 57.63% |
Foreign taxes | 6.29% | (4.69%) | (17.83%) |
Tax-exempt income | 0.21% | 3.75% | 1.93% |
Change in valuation allowance | 63.92% | (75.26%) | 44.79% |
Non-deductible transaction costs | (2.74%) | (39.48%) | |
Foreign tax credits | (0.40%) | 0.14% | 17.90% |
Stock-based compensation | (2.09%) | 10.74% | (23.36%) |
Withholding taxes | 0.03% | 0.14% | (20.83%) |
Alabama law change | (25.39%) | ||
Impact of CARES Act | 45.65% | ||
Return to accrual | 0.24% | 9.48% | |
Global intangible low-taxed income ("GILTI") | (8.08%) | (4.29%) | (0.49%) |
Other, net | (0.24%) | (0.19%) | 0.56% |
Effective Tax Rate | 87.48% | (36.95%) | 138.05% |
Income Taxes - (Loss) Income Be
Income Taxes - (Loss) Income Before Expense (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. entities | $ (33,720) | $ (14,982) | $ (12,833) |
International entities | (37,243) | 8,677 | 6,587 |
Loss Before Income Taxes | $ (70,963) | $ (6,305) | $ (6,246) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Current and Non-current Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Inventory | $ 5,818 | $ 9,538 |
Accrued expenses | 7,865 | 3,851 |
Deferred compensation | 5,792 | 7,027 |
Stock-based compensation | 1,373 | 1,469 |
Uncertain tax positions related to state taxes and related interest | 102 | 124 |
Pensions | 5,952 | 6,061 |
Foreign losses | 4,744 | 2,862 |
State losses and credit carry-forwards | 3,516 | 5,914 |
Federal loss and research carry-forwards | 64,995 | 21,606 |
Lease liabilities | 4,093 | 1,471 |
Capitalized research and development expenditures | 31,248 | 9,349 |
Investments | 160 | |
Valuation allowance | (5,201) | (50,564) |
Net Deferred Tax Assets | 130,457 | 18,708 |
Property, plant and equipment | (8,982) | (3,590) |
Intellectual property | (108,671) | (3,230) |
Right of use lease assets | (6,594) | (1,459) |
Investments | (1,350) | |
Total Deferred Tax Liabilities | (124,247) | (9,629) |
Net Deferred Tax Assets (Liabilities) | $ 6,210 | $ 9,079 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||||
Income tax benefit, result of CARES act of 2020 | $ 10,800,000 | |||||
Valuation allowance established against deferred tax assets | 7,900,000 | |||||
Tax rate differential on carrying back losses amount | $ 2,900,000 | |||||
US corporate tax rate | 35% | |||||
Federal tax rate | 21% | 21% | 21% | |||
Income tax expense, result of Alabama business tax competitiveness act | $ 1,600,000 | |||||
Deferred tax asset, research and development credit carryforwards | $ 64,995,000 | $ 21,606,000 | ||||
Deferred tax expense recorded as an adjustment to other comprehensive (loss) income | 2,000,000 | 1,600,000 | ||||
Deferred tax assets, gross | 11,411,000 | 59,643,000 | ||||
Valuation allowance established against deferred tax assets | 5,201,000 | 50,564,000 | ||||
Deferred tax assets tax credit carryforward net operating loss and research and development | 2,000,000 | |||||
Decrease in valuation allowance | (45,400,000) | |||||
Net of deferred tax liabilities | 6,210,000 | 9,079,000 | ||||
Foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development cost and state credit carry-forwards | $ 104,500,000 | 39,700,000 | ||||
Operating loss carry forwards expiration year | 2038 | |||||
Deferred tax assets | $ 130,457,000 | 18,708,000 | ||||
Cash and cash equivalents | 108,644,000 | 56,603,000 | ||||
Short-term investments (includes $340 and $350 of available-for-sale securities as of December 31, 2022 and 2021, respectively, reported at fair value) | 340,000 | 350,000 | ||||
Short-term liquidity amount | 108,900,000 | 57,000,000 | ||||
Withholding tax liabilities in jurisdiction | 400,000 | 700,000 | ||||
Income tax benefit (expense) from stock options exercised adjustment to equity | 0 | 0 | $ 0 | |||
Unrecognized tax benefits | 17,885,000 | 17,836,000 | 1,078,000 | $ 1,487,000 | ||
Unrecognized tax benefits, effective tax rate | 17,900,000 | 17,800,000 | 1,000,000 | |||
Accrued interest and penalties | 100,000 | 200,000 | $ 300,000 | |||
Foreign Subsidiaries [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Short-term liquidity amount | $ 86,300,000 | $ 47,700,000 | ||||
Short-term liquidity, in percentage | 79% | 84% | ||||
Operating Losses Expiration Between 2023 and 2041 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Deferred tax assets | $ 21,800,000 | |||||
Minimum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Operating loss carry forwards expiration year | 2023 | |||||
Maximum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Operating loss carry forwards expiration year | 2038 | |||||
IRS [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax refund receivable | $ 15,200,000 | |||||
Deferred tax asset, research and development credit carryforwards | 1,800,000 | |||||
Unrecognized tax benefits | $ 17,000,000 | |||||
Domestic [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Deferred tax assets, gross | $ 61,726,000 | $ 48,265,000 | ||||
Valuation allowance established against deferred tax assets | 3,177,000 | $ 48,265,000 | ||||
Current valuation allowance established against deferred tax assets | 3,200,000 | |||||
Deferred tax assets | $ 58,549,000 |
Income Taxes - Summary of Suppl
Income Taxes - Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets | $ 11,411 | $ 59,643 |
Valuation allowance | (5,201) | (50,564) |
Net Deferred Tax Assets | 130,457 | 18,708 |
Total Deferred Tax Liabilities | (124,247) | (9,629) |
Net Deferred Tax Assets (Liabilities) | 6,210 | 9,079 |
Domestic [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets | 61,726 | 48,265 |
Valuation allowance | (3,177) | (48,265) |
Net Deferred Tax Assets | 58,549 | |
International [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets | 11,378 | |
Deferred Tax Liabilities | (50,315) | |
Valuation allowance | (2,024) | (2,299) |
Net Deferred Tax Assets | $ 9,079 | |
Total Deferred Tax Liabilities | $ (52,339) |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 17,836 | $ 1,078 | $ 1,487 |
Increases for tax position related to, Prior years | 17,025 | 4 | |
Increases for tax position related to, Current year | 123 | 136 | 165 |
Decreases for tax positions related to, Prior years | (13) | (27) | |
Expiration of applicable statute of limitations | (61) | (376) | (578) |
Balance at end of period | $ 17,885 | $ 17,836 | $ 1,078 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Plan Obligations and Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of period | $ 44,164 | $ 50,927 | |||
Projected benefit obligation at beginning of period | [1] | 73,779 | |||
Service cost | 1,426 | 1,229 | $ 1,270 | ||
Interest cost | 1,168 | 339 | 444 | ||
Actuarial gain - experience | (2,039) | (750) | |||
Actuarial gain - assumptions | (11,128) | (3,327) | |||
Benefit payments | (1,400) | (756) | |||
Effects of foreign currency exchange rate changes | (2,462) | (3,498) | |||
Projected benefit obligation at end of period | 44,164 | 50,927 | |||
Projected benefit obligation at end of period | 59,344 | 73,779 | [1] | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 32,762 | 32,263 | |||
Fair value of plan assets at beginning of period | [1] | 55,084 | |||
Actual (loss) gain on plan assets | (4,372) | 2,943 | |||
Contributions | 382 | ||||
Effects of foreign currency exchange rate changes | (2,374) | (2,444) | |||
Fair value of plan assets at end of period | 32,762 | $ 32,263 | |||
Fair value of plan assets at end of period | 48,720 | 55,084 | [1] | ||
Unfunded status at end of period | $ (10,624) | $ (11,402) | |||
[1] In connection with the Business Combination, we acquired $ 29.6 million of additional projected benefit obligations and.$ 22.3 million of plan assets whose beginning of period measurement date is July 15, 2022. |
Employee Benefit Plans (Pensi_2
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Plan Obligations and Funded Status (Parenthetical) (Details) $ in Millions | Jul. 15, 2022 USD ($) |
Retirement Benefits [Abstract] | |
Business comination acquired additional projected benefit obligations | $ 29.6 |
Business combination fair value of plan assets | $ 22.3 |
Employee Benefit Plans (Pensi_3
Employee Benefit Plans (Pension Benefit Plan) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 56.8 | $ 44.2 |
Anticipated contributions to pension plans in 2023 | 1.8 | |
Pension Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Business combination, acquired additional obligation | 29.6 | |
Business combination, acquired assets | $ 22.3 | |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Threshold for unamortized gain losses | 10% |
Employee Benefit Plans (Pensi_4
Employee Benefit Plans (Pension Benefit Plan) - Summary of Net Amounts Recognized in Consolidated Balance Sheets for the Unfunded Pension Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Pension liability | $ 10,624 | $ 11,402 |
Total | $ 10,624 | $ 11,402 |
Employee Benefit Plans (Pensi_5
Employee Benefit Plans (Pension Benefit Plan) - Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net periodic benefit cost: | |||
Service cost | $ 1,426 | $ 1,229 | $ 1,270 |
Interest cost | $ 1,168 | $ 339 | $ 444 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ (2,129) | $ (1,842) | $ (1,679) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of actuarial losses | $ 355 | $ 1,088 | $ 970 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net periodic benefit cost | $ 820 | $ 814 | $ 1,005 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income: | |||
Net actuarial (gain) loss | (6,549) | (4,984) | 1,784 |
Amortization of actuarial losses | (113) | (825) | (1,212) |
Amount recognized in other comprehensive (loss) income | (6,662) | (5,809) | 572 |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ (5,842) | $ (4,995) | $ 1,577 |
Employee Benefit Plans (Pensi_6
Employee Benefit Plans (Pension Benefit Plan) - Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ (1,073) | $ (7,736) |
Employee Benefit Plans (Pensi_7
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.24% | 1.16% | 1% |
Rate of compensation increase | 2.17% | 2% | 2% |
Expected long-term rates of return | 4.65% | 5.90% | 5.90% |
Employee Benefit Plans (Pensi_8
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Benefit Obligation (Detail) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | |||
Discount rate | 3.10% | 1.16% | 0.69% |
Rate of compensation increase | 2.17% | 2% | 2% |
Employee Benefit Plans (Pensi_9
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Payments Expected Future Service (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Retirement Benefits [Abstract] | |
2023 | $ 2,377 |
2024 | 2,303 |
2025 | 3,331 |
2026 | 3,092 |
2027 | 3,710 |
2028 - 2032 | 18,287 |
Total | $ 33,100 |
Employee Benefit Plans (Pens_10
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Cash Equivalents and Investments Held at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 32,762 | $ 32,263 | |
Pension Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 48,720 | 32,762 | |
Pension Benefit Plan [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,423 | 801 | |
Pension Benefit Plan [Member] | Available-For-Sale Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47,297 | 31,961 | |
Pension Benefit Plan [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,256 | 7,528 | |
Pension Benefit Plan [Member] | Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,490 | 5,721 | |
Pension Benefit Plan [Member] | Global Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,452 | 12,170 | |
Pension Benefit Plan [Member] | Balanced Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,190 | 2,919 | |
Pension Benefit Plan [Member] | Emerging Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,707 | 2,259 | |
Pension Benefit Plan [Member] | Large Cap Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 194 | 235 | |
Pension Benefit Plan [Member] | Global Real Estate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,008 | 1,129 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48,720 | 32,762 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,423 | 801 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Available-For-Sale Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47,297 | 31,961 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,256 | 7,528 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,490 | 5,721 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Global Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,452 | 12,170 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Balanced Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,190 | 2,919 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Emerging Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,707 | 2,259 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Large Cap Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 194 | 235 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Global Real Estate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 6,008 | $ 1,129 |
Employee Benefit Plans (401(k)
Employee Benefit Plans (401(k) Savings Plan) - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Criteria of employer to contribute in employee saving plan | 100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions | ||
Percentage of employer match to employee's contribution | 100% | ||
Percentage of employer match to employee's contribution | 50% | ||
Upper limit of employer match | 4% | ||
Percentage of employee first contribution | 3% | ||
Percentage of employee second contribution | 2% | ||
Maximum statutory compensation under code | $ 305,000 | ||
Contribution expense and plan administration costs for savings plan | $ 4,100,000 | $ 3,900,000 | $ 4,000,000 |
Employee Benefit Plans (Deferre
Employee Benefit Plans (Deferred Compensation Plans) - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Compensation_Program | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | |||
Number of deferred compensation programs | Compensation_Program | 4 | ||
Maximum percentage of cash compensation allowed to be deferred under the deferred compensation plan | 25% | ||
Criteria for benefit distribution | six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten-year term based on the participant’s election | ||
Benefit distribution, scheduled to be distributed term | 6 months | ||
Deferred compensation income (expense) adjustments due to fair value of the trust assets | $ 6.3 | $ 0.9 | $ 4.3 |
Treasury Stock [Member] | |||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | |||
Common stock, value of shares held by trust | $ 3.7 | $ 4.1 | |
Minimum [Member] | |||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | |||
Benefit distribution, paid over annual instalment term | 3 years | ||
Maximum [Member] | |||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | |||
Benefit distribution, paid over annual instalment term | 10 years |
Employee Benefit Plans (Defer_2
Employee Benefit Plans (Deferred Compensation Plans) - Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term Investments | $ 22,943 | $ 26,935 |
Amounts Payable to Plan Participants Deferred Compensation Liability | 26,668 | 31,383 |
Deferred Compensation Liability [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts Payable to Plan Participants Deferred Compensation Liability | 26,668 | 31,383 |
Long Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term Investments | $ 22,943 | $ 26,935 |
Employee Benefit Plans (Retiree
Employee Benefit Plans (Retiree Medical Coverage) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Maximum number of years medical, dental and prescription drug coverage to spouses of retired former officers | 30 years | |
Total liability recorded to provide medical, dental and prescription drug coverage | $ 0.2 | $ 0.3 |
Equity - Changes in Accumulated
Equity - Changes in Accumulated Other Comprehensive (Loss) Income, Net of Tax by Components of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 357,102 | $ 372,944 | $ 380,426 |
Other comprehensive (loss) income before reclassifications | 57,874 | (965) | 4,375 |
Amounts reclassified from accumulated other comprehensive (loss) income | (165) | 690 | 403 |
Net current period other comprehensive (loss) income | 57,709 | ||
Less: Comprehensive Loss attributable to non-controlling interest, net of tax | (918) | ||
Ending Balance | 1,303,613 | 357,102 | 372,944 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (552) | 32 | (284) |
Other comprehensive (loss) income before reclassifications | (41) | (705) | 749 |
Amounts reclassified from accumulated other comprehensive (loss) income | (243) | 121 | (433) |
Net current period other comprehensive (loss) income | (284) | ||
Ending Balance | (836) | (552) | 32 |
Defined Benefit Plan Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (5,613) | (9,621) | (9,226) |
Other comprehensive (loss) income before reclassifications | 4,519 | 3,439 | (1,231) |
Amounts reclassified from accumulated other comprehensive (loss) income | 78 | 569 | 836 |
Net current period other comprehensive (loss) income | 4,597 | ||
Ending Balance | (1,016) | (5,613) | (9,621) |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (6,134) | (2,435) | (7,292) |
Other comprehensive (loss) income before reclassifications | 53,396 | (3,699) | 4,857 |
Net current period other comprehensive (loss) income | 53,396 | ||
Less: Comprehensive Loss attributable to non-controlling interest, net of tax | (918) | ||
Ending Balance | 48,180 | (6,134) | (2,435) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (11,914) | (11,639) | (16,417) |
Ending Balance | 46,713 | (11,914) | (11,639) |
ASU 2018-02 [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 385 | 385 | 385 |
Ending Balance | $ 385 | $ 385 | $ 385 |
Equity - Reclassifications Out
Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Defined benefit plan adjustments – actuarial losses | $ (11,128) | $ (3,327) | |
Loss Before Income Taxes | (70,963) | (6,305) | $ (6,246) |
Tax (benefit) expense | 62,075 | (2,330) | 8,624 |
Net Income (Loss) | (2,037) | (8,635) | 2,378 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Defined benefit plan adjustments – actuarial losses | (113) | (825) | (1,212) |
Loss Before Income Taxes | 215 | (989) | (627) |
Tax (benefit) expense | (50) | 299 | 224 |
Net Income (Loss) | 165 | (690) | (403) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized (Loss) Gain on Available-for-Sale Securities [Member] | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net investment gain | $ 328 | $ (164) | $ 585 |
Equity - Tax Effects Related to
Equity - Tax Effects Related to the Change in Each Component of Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Unrealized gain (loss) on available-for-sale securities, Before-Tax Amount | $ (55) | $ (953) | $ 1,012 |
Unrealized gain (loss) on available-for-sale securities, Tax (Expense) Benefit | 14 | 248 | (263) |
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount | (41) | (705) | 749 |
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Before-Tax Amount | (328) | 164 | (585) |
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Tax (Expense) Benefit | 85 | (43) | 152 |
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Net-of-Tax Amount | (243) | 121 | (433) |
Defined benefit plan adjustments, Before-Tax Amount | 6,549 | 4,984 | (1,784) |
Defined benefit plan adjustments, Tax (Expense) Benefit | (2,030) | (1,545) | 553 |
Defined benefit plan adjustments, Net-of-Tax Amount | 4,519 | 3,439 | (1,231) |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Before-Tax Amount | 113 | 825 | 1,212 |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Tax (Expense) Benefit | (35) | (256) | (376) |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Net-of-Tax Amount | 78 | 569 | 836 |
Foreign currency translation adjustment, Before-Tax Amount | 53,396 | (3,699) | 4,857 |
Foreign currency translation adjustment, Net-of-Tax Amount | 53,396 | (3,699) | 4,857 |
Total Other Comprehensive (loss) Income, Before-Tax Amount | 59,675 | 1,321 | 4,712 |
Total Other Comprehensive (Loss) Income, Tax (Expense) Benefit | (1,966) | (1,596) | 66 |
Other comprehensive income (loss), net of tax | $ 57,709 | $ (275) | $ 4,778 |
Segment Information and Major_3
Segment Information and Major Customers - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Category Segment Customer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) Customer | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Depreciation expense | $ 20,900 | $ 12,000 | $ 12,200 |
Number of categories | Category | 3 | ||
Number of single customer comprising more than 10% of sales | Customer | 1 | 1 | 3 |
Long-lived assets | $ 110,700 | $ 55,800 | |
Network Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 3,200 | 1,200 | $ 1,400 |
Services & Support [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 10 | 14 | $ 32 |
U.S. [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 56,200 | 53,000 | |
Outside U.S. [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 54,500 | $ 2,800 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 1 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.40% | 18% | 15% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 2 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 3 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | The Five Largest Customers Other Than Those With More Than 10% Of Revenues and Excluding Distributors [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 33% | 38% | 34% |
Segment Information and Major_4
Segment Information and Major Customers - Revenue and Gross Profit of Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 1,025,536 | $ 563,004 | $ 506,510 |
Gross Profit | 327,252 | 218,377 | 217,551 |
Network Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 916,793 | 498,834 | 438,015 |
Gross Profit | 269,688 | 190,993 | 193,789 |
Services & Support [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 108,743 | 64,170 | 68,495 |
Gross Profit | $ 57,564 | $ 27,384 | $ 23,762 |
Segment Information and Major_5
Segment Information and Major Customers - Disaggregation of Sales by Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 1,025,536 | $ 563,004 | $ 506,510 |
Network Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 916,793 | 498,834 | 438,015 |
Services & Support [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 108,743 | 64,170 | 68,495 |
Access & Aggregation [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 374,002 | 356,794 | 327,846 |
Access & Aggregation [Member] | Network Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 326,934 | 309,009 | 274,666 |
Access & Aggregation [Member] | Services & Support [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 47,068 | 47,785 | 53,180 |
Subscriber Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 390,454 | 206,210 | 178,664 |
Subscriber Solutions [Member] | Network Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 364,238 | 189,825 | 163,349 |
Subscriber Solutions [Member] | Services & Support [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 26,216 | $ 16,385 | 15,315 |
Optical Networking Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 261,080 | ||
Optical Networking Solutions [Member] | Network Solutions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 225,621 | ||
Optical Networking Solutions [Member] | Services & Support [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 35,459 |
Segment Information and Major_6
Segment Information and Major Customers - Revenue Information by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | |||
Revenue | $ 1,025,536 | $ 563,004 | $ 506,510 |
United States [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue | 517,433 | 374,600 | 352,079 |
United Kingdom [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue | 189,685 | 56,355 | 13,799 |
Germany [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue | 146,797 | 65,229 | 74,882 |
Other International [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 171,621 | $ 66,820 | $ 65,750 |
Liability for Warranty Return_2
Liability for Warranty Returns (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Product Warranties Disclosures [Abstract] | ||||
Liability for warranty obligations | $ 7,196 | $ 5,403 | $ 7,146 | $ 8,394 |
Liability for Warranty Return_3
Liability for Warranty Returns - Summary of Warranty Expense and Write-off Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |||
Balance at beginning of period | $ 5,403 | $ 7,146 | $ 8,394 |
Plus: ADVA acquisition | 3,756 | ||
Plus: Amounts charged to cost and expenses | 3,104 | 855 | 1,538 |
Plus: Foreign currency translation adjustments | 334 | ||
Less: Deductions | (5,401) | (2,598) | (2,786) |
Balance at end of period | $ 7,196 | $ 5,403 | $ 7,146 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Contingencies And Commitments [Line Items] | ||
Commitments related to performance bonds | $ 22 | $ 22.9 |
Purchase commitments | $ 552.4 |
Current Expected Credit Losses
Current Expected Credit Losses - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Position | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Accounts receivable | $ 279,435,000 | $ 158,742,000 | |
Allowance for credit losses, accounts receivable | 100,000 | 0 | $ 0 |
Allowance for credit losses, accounts receivable | 49,000 | 0 | |
Outstanding contract asset | 1,852,000 | 464,000 | |
Allowance for credit losses related to contract assets | 0 | 0 | |
Available-for-sale debt securities | $ 9,253,000 | 30,066,000 | |
Number of positions in available-for-sale debt securities, unrealized loss position | Position | 99 | ||
Available-for-sale, debt securities, allowance for credit loss | $ 0 | 0 | |
Off-balance sheet arrangements | 0 | 0 | $ 0 |
Maximum [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for credit losses, accounts receivable | 100,000 | ||
Accrued interest receivable | $ 100,000 | $ 100,000 |
(Loss) Earnings per Share - Sum
(Loss) Earnings per Share - Summary of Calculations of Basic and Diluted (Loss) Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | |||
Net loss attributable to ADTRAN Holdings, Inc. | $ (2,037) | $ (8,635) | $ 2,378 |
Denominator | |||
Weighted average number of shares – basic | 62,346 | 48,582 | 47,996 |
Effect of dilutive securities: | |||
PSUs, RSUs and restricted stock | 292 | ||
Weighted average number of shares – diluted | 62,346 | 48,582 | 48,288 |
(Loss) earnings per share attributable to ADTRAN Holdings, Inc. - basic | $ (0.03) | $ (0.18) | $ 0.05 |
(Loss) earnings per share attributable to ADTRAN Holdings, Inc. - diluted | $ (0.03) | $ (0.18) | $ 0.05 |
(Loss) Earnings per Share - Add
(Loss) Earnings per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive effect excluded calculation of diluted earnings per share | 0.2 | 0.3 | 3.6 |
Unvested Stock Options, PSUs, RSUs and Restricted Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive effect excluded calculation of diluted earnings per share | 0.1 | 0.1 | |
Unvested Stock Options, PSUs, RSUs and Restricted Stock [Member] | Maximum [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive effect excluded calculation of diluted earnings per share | 0.1 |
Restructuring - Schedule of Rec
Restructuring - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Balance at beginning of period | $ 1,514 | $ 4,186 | |
Plus: Amounts charged to cost and expense | 1,629 | 411 | $ 6,229 |
Less: Amounts paid | (2,984) | (3,083) | |
Balance at end of period | $ 159 | $ 1,514 | $ 4,186 |
Restructuring - Schedule of Com
Restructuring - Schedule of Components of Restructuring Expense Included in Consolidated Statements of Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | $ 1,629 | $ 411 | $ 6,229 |
Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | 117 | 221 | 1,832 |
Research and Development Expenses [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | 1,504 | 174 | 3,942 |
Cost of Sales [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | 8 | 16 | 455 |
Cost of Sales [Member] | Network Solutions [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | 8 | 13 | 220 |
Cost of Sales [Member] | Services And Support [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | $ 3 | $ 235 |
Restructuring - Schedule of C_2
Restructuring - Schedule of Components of Restructuring Expense by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | $ 1,629 | $ 411 | $ 6,229 |
United States [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | 2 | 289 | 2,234 |
International [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring expenses | $ 1,627 | $ 122 | $ 3,995 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Feb. 20, 2023 | Jan. 31, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Jan. 16, 2023 | Jul. 18, 2022 | |
Subsequent Event [Line Items] | ||||||||
Proceeds from borrowings under credit agreements | $ 141,887 | $ 10,000 | ||||||
Revolving line of credit | 95,936 | |||||||
Repayments of Lines of Credit | 48,000 | $ 10,000 | ||||||
Wells Fargo Credit Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolving line of credit | 60,000 | |||||||
Deutsche Bank Revolving Line of Credit [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolving line of credit | 9,118 | |||||||
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Secured revolving credit facility amount | 100,000 | $ 100,000 | ||||||
Revolving line of credit | 60,000 | |||||||
Available for future borrowings | 18,700 | |||||||
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Credit agreement current borrowing capacity | $ 400,000 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividend declaration date | Feb. 20, 2023 | |||||||
Common stock dividends per share declared | $ 0.09 | |||||||
Dividend record date | Mar. 07, 2023 | |||||||
Dividend payment date | Mar. 21, 2023 | |||||||
Quarterly dividend payable, aggregate amount | $ 7,000 | |||||||
Subsequent Event [Member] | Wells Fargo Credit Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from borrowings under credit agreements | $ 51,400 | |||||||
Available for future borrowings | $ 198,700 | |||||||
Subsequent Event [Member] | Deutsche Bank Revolving Line of Credit [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolving line of credit | 9,100 | |||||||
Subsequent Event [Member] | Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolving line of credit | $ 187,500 | 180,000 | ||||||
Repayments of Lines of Credit | 7,500 | |||||||
Available for future borrowings | $ 198,700 | |||||||
Subsequent Event [Member] | Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member] | Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Credit agreement current borrowing capacity | $ 400,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Credit Losses [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 38 | $ 38 | |
Charged to costs & expenses | 49 | (38) | |
Deductions | |||
Balance at end of period | 49 | 38 | |
Deferred Tax Asset Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 50,564 | 45,818 | 48,616 |
Charged to costs & expenses | 0 | 6,347 | 5,120 |
Deductions | 45,363 | 1,601 | 7,918 |
Balance at end of period | $ 5,201 | $ 50,564 | $ 45,818 |