Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 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 | ||
Entity Registrant Name | CommScope Holding Company, Inc. | ||
Entity Central Index Key | 0001517228 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1,247.6 | ||
Entity Common Stock, Shares Outstanding | 208,455,920 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | COMM | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-36146 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-4332098 | ||
Entity Address, Address Line One | 1100 CommScope Place, SE | ||
Entity Address, City or Town | Hickory | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28602 | ||
City Area Code | 828 | ||
Local Phone Number | 324-2200 | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s Proxy Statement for the 2023 Annual Meeting of Stockholders are incorporated by reference in Part III hereof. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Charlotte, North Carolina | ||
Auditor Firm ID | 42 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 9,228.1 | $ 8,586.7 | $ 8,435.9 |
Cost of sales | 6,424 | 5,902.4 | 5,688.1 |
Gross profit | 2,804.1 | 2,684.3 | 2,747.8 |
Operating expenses: | |||
Selling, general and administrative | 1,135 | 1,233.9 | 1,170.7 |
Research and development | 657.4 | 683.2 | 703.3 |
Amortization of purchased intangible assets | 543 | 613 | 630.5 |
Restructuring costs, net | 62.9 | 91.9 | 88.4 |
Asset impairments | 1,119.6 | 13.7 | 206.7 |
Total operating expenses | 3,517.9 | 2,635.7 | 2,799.6 |
Operating income (loss) | (713.8) | 48.6 | (51.8) |
Other expense, net | (0.1) | (23.8) | (29.3) |
Interest expense | (588.9) | (561.2) | (577.8) |
Interest income | 2.8 | 1.9 | 4.4 |
Loss before income taxes | (1,300) | (534.5) | (654.5) |
Income tax benefit | 13.1 | 71.9 | 81.1 |
Net loss | (1,286.9) | (462.6) | (573.4) |
Series A convertible preferred stock dividends | (59) | (57.3) | (56.1) |
Net loss attributable to common stockholders | $ (1,345.9) | $ (519.9) | $ (629.5) |
Loss per share: | |||
Basic | $ (6.49) | $ (2.55) | $ (3.20) |
Diluted | $ (6.49) | $ (2.55) | $ (3.20) |
Weighted average shares outstanding: | |||
Basic | 207.4 | 203.6 | 196.8 |
Diluted | 207.4 | 203.6 | 196.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Comprehensive loss: | |||
Net loss | $ (1,286.9) | $ (462.6) | $ (573.4) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | (104.5) | (85.3) | 82.2 |
Defined benefit plans: | |||
Change in unrecognized actuarial gain (loss) | (1.5) | 22.8 | (10.8) |
Change in unrecognized net prior service credit | 0.1 | 0.2 | (0.2) |
Gain (loss) on hedging instruments | 16 | 11.8 | (30.1) |
Total other comprehensive income (loss), net of tax | (89.9) | (50.5) | 41.1 |
Total comprehensive loss | $ (1,376.8) | $ (513.1) | $ (532.3) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 398.1 | $ 360.3 |
Accounts receivable, net of allowance for doubtful accounts of $82.8 and $63.7, respectively | 1,523.6 | 1,532.6 |
Inventories, net | 1,588.1 | 1,435.8 |
Prepaid expenses and other current assets | 216.4 | 251 |
Total current assets | 3,726.2 | 3,579.7 |
Property, plant and equipment, net of accumulated depreciation of $873.5 and $787.4, respectively | 609.6 | 656.3 |
Goodwill | 4,072.4 | 5,231.7 |
Other intangible assets, net | 2,473.5 | 3,027.3 |
Other noncurrent assets | 803.7 | 764.5 |
Total assets | 11,685.4 | 13,259.5 |
Liabilities and Stockholders' Deficit | ||
Accounts payable | 1,025.5 | 1,160.7 |
Accrued and other liabilities | 1,050 | 989.8 |
Current portion of long-term debt | 32 | 32 |
Total current liabilities | 2,107.5 | 2,182.5 |
Long-term debt | 9,469.6 | 9,478.5 |
Deferred income taxes | 173.4 | 208.2 |
Other noncurrent liabilities | 380.6 | 490.8 |
Total liabilities | 12,131.1 | 12,360 |
Commitments and contingencies | ||
Series A convertible preferred stock, $0.01 par value | 1,100.3 | 1,056.1 |
Stockholders' deficit: | ||
Preferred stock, $0.01 par value: Authorized shares: 200,000,000; Issued and outstanding shares: 1,100,310 and 1,056,144, respectively, Series A convertible preferred stock | 0 | 0 |
Common stock, $0.01 par value: Authorized shares: 1,300,000,000; Issued and outstanding shares: 208,371,426 and 204,567,294, respectively | 2.2 | 2.2 |
Additional paid-in capital | 2,542.9 | 2,540.7 |
Accumulated deficit | (3,502.2) | (2,215.3) |
Accumulated other comprehensive loss | (296.3) | (206.4) |
Treasury stock, at cost: 12,726,695 shares and 10,970,585 shares, respectively | (292.6) | (277.8) |
Total stockholders' deficit | (1,546) | (156.6) |
Total liabilities and stockholders' deficit | $ 11,685.4 | $ 13,259.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 82.8 | $ 63.7 |
Property, plant and equipment, accumulated depreciation | $ 873.5 | $ 787.4 |
Series A convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Series A convertible preferred stock, shares issued | 1,100,310 | 1,100,310 |
Series A convertible preferred stock, shares outstanding | 1,056,144 | 1,056,144 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,300,000,000 | 1,300,000,000 |
Common stock, shares issued | 208,371,426 | 204,567,294 |
Common stock, shares outstanding | 208,371,426 | 204,567,294 |
Treasury stock, shares | 12,726,695 | 10,970,585 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities: | |||
Net loss | $ (1,286.9) | $ (462.6) | $ (573.4) |
Adjustments to reconcile net loss to net cash generated by operating activities: | |||
Depreciation and amortization | 696.1 | 786.3 | 823.3 |
Equity-based compensation | 61.1 | 79.6 | 115 |
Deferred income taxes | (118.4) | (147.5) | (154.7) |
Asset impairments | 1,119.6 | 13.7 | 206.7 |
Changes in assets and liabilities: | |||
Accounts receivable | (16) | (59.6) | 228.4 |
Inventories | (178.8) | (359.8) | (100.5) |
Prepaid expenses and other current assets | 30.9 | 3.2 | (17.2) |
Accounts payable and other accrued liabilities | (43.2) | 256 | (175.2) |
Other noncurrent assets | 8.2 | (45.5) | 28.8 |
Other noncurrent liabilities | (88.8) | 8.4 | (4) |
Other | 6.2 | 50.1 | 59 |
Net cash generated by operating activities | 190 | 122.3 | 436.2 |
Investing Activities: | |||
Additions to property, plant and equipment | (101.3) | (131.4) | (121.2) |
Proceeds from sale of property, plant and equipment | 0.1 | 13.1 | 5 |
Cash paid for Cable Exchange acquisition | 0 | 0 | (3.5) |
Payments upon settlement of net investment hedge | 0 | (18) | 0 |
Other | 19.1 | (0.5) | (0.5) |
Net cash used in investing activities | (82.1) | (136.8) | (120.2) |
Financing Activities: | |||
Long-term debt repaid | (365) | (1,282) | (1,282) |
Long-term debt proceeds | 333 | 1,250 | 950 |
Debt issuance costs | (7.2) | (12) | (11.7) |
Debt extinguishment costs | 0 | (34.4) | (17.9) |
Dividends paid on Series A convertible preferred stock | (14.9) | (43) | (14.3) |
Proceeds from the issuance of common shares under equity-based compensation plans | 0.1 | 5.6 | 9 |
Tax withholding payments for vested equity-based compensation awards | (14.8) | (26.4) | (16.9) |
Other | 3.8 | 2.7 | 0 |
Net cash used in financing activities | (65) | (139.5) | (383.8) |
Effect of exchange rate changes on cash and cash equivalents | (5.1) | (7.6) | (8.5) |
Change in cash and cash equivalents | 37.8 | (161.6) | (76.3) |
Cash and cash equivalents at beginning of period | 360.3 | 521.9 | 598.2 |
Cash and cash equivalents at end of period | $ 398.1 | $ 360.3 | $ 521.9 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, at Cost [Member] |
Beginning balance, Shares at Dec. 31, 2019 | 194,563,530 | |||||
Issuance of shares under equity-based compensation plans, shares | 7,343,401 | |||||
Shares surrendered under equity-based compensation plans | (1,811,699) | |||||
Ending balance, Shares at Dec. 31, 2020 | 200,095,232 | |||||
Beginning balance at Dec. 31, 2019 | $ 2 | $ 2,445.1 | $ (1,179.3) | $ (197) | $ (234.5) | |
Issuance of shares under equity-based compensation plans | 0.1 | 8.9 | ||||
Equity-based compensation | 115 | |||||
Dividends on Series A convertible preferred stock | (56.1) | |||||
Net income (loss) | $ (573.4) | (573.4) | ||||
Other comprehensive income (loss), net of tax | 41.1 | 41.1 | ||||
Net shares surrendered under equity-based compensation plans | (16.9) | |||||
Ending balance at Dec. 31, 2020 | $ 355 | $ 2.1 | 2,512.9 | (1,752.7) | (155.9) | (251.4) |
Issuance of shares under equity-based compensation plans, shares | 6,219,566 | |||||
Shares surrendered under equity-based compensation plans | (1,747,504) | |||||
Ending balance, Shares at Dec. 31, 2021 | 204,567,294 | 204,567,294 | ||||
Issuance of shares under equity-based compensation plans | $ 0.1 | 5.5 | ||||
Equity-based compensation | 79.6 | |||||
Dividends on Series A convertible preferred stock | (57.3) | |||||
Net income (loss) | $ (462.6) | (462.6) | ||||
Other comprehensive income (loss), net of tax | (50.5) | (50.5) | ||||
Net shares surrendered under equity-based compensation plans | (26.4) | |||||
Ending balance at Dec. 31, 2021 | $ (156.6) | $ 2.2 | 2,540.7 | (2,215.3) | (206.4) | (277.8) |
Issuance of shares under equity-based compensation plans, shares | 5,560,242 | |||||
Shares surrendered under equity-based compensation plans | 1,756,110 | |||||
Ending balance, Shares at Dec. 31, 2022 | 208,371,426 | 208,371,426 | ||||
Issuance of shares under equity-based compensation plans | 0.1 | |||||
Equity-based compensation | 61.1 | |||||
Dividends on Series A convertible preferred stock | (59) | |||||
Net income (loss) | $ (1,286.9) | (1,286.9) | ||||
Other comprehensive income (loss), net of tax | (89.9) | (89.9) | ||||
Net shares surrendered under equity-based compensation plans | (14.8) | |||||
Ending balance at Dec. 31, 2022 | $ (1,546) | $ 2.2 | $ 2,542.9 | $ (3,502.2) | $ (296.3) | $ (292.6) |
Background and Description of t
Background and Description of the Business | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Background and Description of the Business | 1. BACKGROUND AND DESCRIPTION OF THE BUSINESS CommScope Holding Company, Inc., along with its direct and indirect subsidiaries (CommScope or the Company), is a global provider of infrastructure solutions for communication, data center and entertainment networks. The Company’s solutions for wired and wireless networks enable service providers including cable, telephone and digital broadcast satellite operators and media programmers to deliver media, voice, Internet Protocol (IP) data services and Wi-Fi to their subscribers and allow enterprises to experience constant wireless and wired connectivity across complex and varied networking environments. The Company’s solutions are complemented by services including technical support, systems design and integration. CommScope is a leader in digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms and equipment that delivers data and voice networks to homes. CommScope’s global leadership position is built upon innovative technology, broad solution offerings, high-quality and cost-effective customer solutions, and global manufacturing and distribution scale. As of January 1, 2022, the Company reorganized its internal management and reporting structure to align its portfolio of products and solutions more closely with the markets it serves and provides better performance comparability with its competitive peer set. The reorganization changed the information regularly reviewed by the Company's chief operating decision maker for purposes of allocating resources and assessing performance. As a result, the Company is now reporting financial performance based on the following operating segments: Connectivity and Cable Solutions (CCS), Outdoor Wireless Networks (OWN), Networking, Intelligent Cellular and Security Solutions (NICS), Access Network Solutions (ANS) and Home Networks (Home). These five segments represent non-aggregated reportable operating segments. Prior to this change, the Company operated and reported four operating segments: Broadband Networks, Outdoor Wireless Networks, Venue and Campus Networks and Home Networks. All prior period amounts in these consolidated financial statements have been recast to reflect these operating segment changes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The accompanying consolidated financial statements include CommScope Holding Company, Inc., along with its direct and indirect subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. Use of Estimates in the Preparation of the Financial Statements The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and their underlying assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other objective sources. The Company bases its estimates on historical experience and on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Significant accounting estimates reflected in the Company’s financial statements include the allowance for doubtful accounts; reserves for sales returns, discounts, allowances, rebates and distributor price protection programs; inventory excess and obsolescence reserves; product warranty reserves and other contingent liabilities; tax valuation allowances; liabilities for unrecognized tax benefits; impairment reviews for investments, property, plant and equipment, goodwill and other intangible assets; and pension and other postretirement benefit costs and liabilities. Although these estimates are based on management’s knowledge of and experience with past and current events and on management’s assumptions about future events, it is at least reasonably possible that they may ultimately differ materially from actual results. Cash and Cash Equivalents Cash and cash equivalents represent deposits in banks and cash invested temporarily in various instruments that are highly liquid and have a maturity of three months or less at the time of purchase. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable and contract assets for unbilled receivables are stated at the amount owed by the customer, net of allowances for estimated doubtful accounts, discounts, returns and rebates. The Company measures the allowance for doubtful accounts using an expected credit loss model, which uses a lifetime expected loss allowance for all trade accounts receivable and contract assets. To measure the expected credit losses, trade accounts receivable and contract assets are grouped based on shared credit risk characteristics and the days past due based on the contractual terms of the receivable. Contract assets relate to unbilled work in progress and have substantially the same risk characteristics as trade accounts receivable for the same types of contracts. Therefore, the Company has concluded that the expected loss rates for trade accounts receivables are a reasonable approximation of the loss rates for the contract assets. In calculating an allowance for doubtful accounts, the Company uses its historical experience, external indicators and forward-looking information to calculate expected credit losses using an aging method. The Company assesses impairment of trade accounts receivable on a collective basis as they possess shared credit risk characteristics which have been grouped based on the days past due. The expected loss rates are based on the payment profiles of sales over the preceding thirty-six months and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle their trade accounts receivable. Accounts are written off against the allowance account when they are determined to be no longer collectible. The Company sells certain of its accounts receivable under a customer-sponsored supplier financing agreement. Under this agreement, the Company is able to sell certain accounts receivable to a bank at a discount. The Company sold approximately $ 339 million and $ 45 million of trade accounts receivable under this program during the years ended December 31, 2022 and 2021, respectively, and the cost of factoring such receivables was not material. The Company derecognizes the accounts receivable on the Consolidated Balance Sheet once sold to the bank, as it retains no interest in and has no servicing responsibilities for them once they have been sold. The cash received from the bank is classified within the operating activities section in the Consolidated Statements of Cash Flows. Inventories Inventories are stated at the lower of cost or net realizable value. Inventory cost is determined on a first-in, first-out (FIFO) basis. Costs such as idle facility expense, excessive scrap and re-handling costs are expensed as incurred. The Company maintains reserves to reduce the value of inventory to the lower of cost or net realizable value, including reserves for excess and obsolete inventory. Derivative Instruments and Hedging Activities CommScope is exposed to risks resulting from adverse fluctuations in commodity prices, interest rates and foreign currency exchange rates. CommScope’s risk management strategy includes the use of derivative financial instruments whenever management determines their use to be reasonable and practical. This strategy does not permit the use of derivative financial instruments for trading or speculation. The Company periodically uses forward contracts to hedge a portion of its balance sheet foreign exchange re-measurement risk and to hedge certain planned foreign currency expenditures. Unrealized gains and losses resulting from these contracts are recognized in other expense, net and partially offset corresponding foreign exchange gains and losses on the balances and expenditures being hedged. These instruments are not designated as hedges for hedge accounting purposes and are marked to market each period through earnings. The Company also has a hedging strategy to mitigate a portion of the exposure to changes in cash flows resulting from variable interest rates on the senior secured term loan due 2026 (2026 Term Loan), which are based on the one-month LIBOR benchmark rate. Hedge effectiveness is assessed each quarter, and for hedges that meet the effectiveness requirements, changes in fair value are recorded as a component of other comprehensive income (loss), net of tax, and are reclassified to interest expense as interest payments are made on the Company’s variable rate debt. The Company has elected and documented the use of the normal purchases and sales exception for normal purchase and sales contracts that meet the definition of a derivative financial instrument. See Note 8 for further disclosure related to the derivative instruments and hedging activities. Leases The Company determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are reported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities and other noncurrent liabilities on the Consolidated Balance Sheets. For the periods presented, CommScope does not have any financing type leases. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The majority of the Company’s leases do not provide an implicit rate; therefore, the Company uses the incremental borrowing rates applicable to the economic environment and the duration of the lease, based on the information available at commencement date, in determining the present value of future payments. The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial direct costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company remeasures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for as a separate contract. The lease liability is remeasured when there is a change in the lease term or a change in the assessment of whether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived asset impairment policy. The Company accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments made for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration of less than twelve months are recorded directly to lease expense. Property, Plant and Equipment Property, plant and equipment are stated at cost. Upon application of acquisition accounting, property, plant and equipment are measured at estimated fair value as of the acquisition date to establish a new historical cost basis. Provisions for depreciation are based on estimated useful lives of the assets using the straight-line method. Useful lives generally range from 10 to 35 years for buildings and improvements and 3 to 10 years for machinery and equipment. Expenditures for repairs and maintenance are expensed as incurred. Assets that management intends to dispose of and that meet held for sale criteria are carried at the lower of the carrying value or fair value less costs to sell. Goodwill and Other Intangible Assets Goodwill is assigned to reporting units based on the difference between the purchase price as allocated to the reporting units and the estimated fair value of the identified net assets acquired as allocated to the reporting units. Purchased intangible assets with finite lives are carried at their estimated fair values at the time of acquisition less accumulated amortization and any impairment charges. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets, which approximates the pattern that the economic benefits are realized by the Company. Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. Property, plant and equipment, intangible assets with finite lives and right of use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are adjusted to estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment and are then measured at fair value if an impairment is determined to exist. See Notes 3 and 9 for discussion of asset impairment charges. Inventory Repurchase Obligations The Company periodically enters into sell / buy transactions with its contract manufacturers, where it sells certain component inventory to its contract manufacturers for use in its finished goods. The Company is obligated to subsequently repurchase this inventory either as a finished food or the original component inventory if it is not consumed after a specific period of time. The Company records an accounts receivable and a corresponding contract manufacturer inventory repurchase obligation in accrued and other liabilities related to these transactions. The Company does not record a sale upon shipment of the inventory to the contract manufacturer and the original value of the inventory remains in its inventory balance. Revenue Recognition The Company recognizes revenue based on the satisfaction of distinct obligations to transfer goods and services to customers. The Company’s revenue is generated primarily from product or equipment sales. The Company also generates revenue from custom design and installation services as well as bundled sales arrangements that include product, software and services. The Company applies a five-step approach as defined in ASC 606, Revenue from Contracts with Customers, in determining the amount and timing of revenue to be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when a corresponding performance obligation is satisfied. Most contracts with customers are to provide distinct products or services within a single contract. However, if a contract is separated into more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling price. Product sales to end-customers or distributors represent over 90 % of the Company’s revenue and are recognized at a point-in-time, which is generally at the point in time when products have been shipped, right to payment has been obtained and risk of loss has been transferred. Certain of the Company’s product performance obligations include proprietary operating system software, which typically is not considered separately identifiable. Therefore, sales of these products and the related software are considered one performance obligation. License contracts include revenue recognized for the licensing of intellectual property, including software, sold separately without products. Functional intellectual property licenses do not meet the criteria for revenue to be recognized over time and revenue is most commonly recognized upon delivery of the license/software to the customer. The Company has service arrangements where net sales are recognized over time. These arrangements include a variety of post-contract support service offerings, which are generally recognized over time as the services are provided, including the following: maintenance and support services provided under annual service-level agreements; “Day 2” professional services to help customers maximize their utilization of deployed systems; and installation services related to the routine installation of equipment ordered by the customer at the customer’s site. Revenue is measured based on the consideration the Company expects to be entitled based on customer contracts. Sales are adjusted for variable consideration amounts, including but not limited to estimated discounts, rebates, distributor price protection programs and returns. These estimates are determined based upon historical experience, contract terms, inventory levels in the distributor channel and other related factors. Adjustments to variable consideration estimates are recorded when circumstances indicate revisions may be necessary. Variable consideration is primarily related to the Company's sales to distributors, system integrators and value-added resellers. A contract liability for deferred revenue is recorded when consideration is received or is unconditionally due from a customer prior to transferring control of goods or services to the customer under the terms of a contract. Deferred revenue balances typically result from advance payments received from customers for product contracts or from billings in excess of revenue recognized on services arrangements. Unbilled receivables are recorded when revenues are recognized in advance of invoice issuance. These assets are presented on a combined basis with accounts receivable and are converted to accounts receivable once the Company’s right to the consideration becomes unconditional, which varies by contract but is generally based on achieving certain acceptance milestones. The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would be one year or less. Shipping and Handling Costs The Company includes shipping and handling costs billed to customers in net sales and includes the costs incurred to transport product to customers as well as certain internal handling costs, which relate to activities to prepare goods for shipment, as cost of sales. Shipping and handling costs incurred after control is transferred to the customer are accounted for as fulfillment costs and are not accounted for as separate revenue obligations. Tax Collected from Customers Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, which are collected by the Company from customers, are excluded from net sales. Advertising Costs Advertising costs are expensed in the period in which they are incurred and are reflected in selling, general and administrative expense on the Consolidated Statements of Operations. Advertising expense was $ 39.4 million, $ 35.8 million and $ 45.9 million for the years ended December 31, 2022, 2021 and 2020 , respectively. Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer assurance-type warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods, depending on the product subject to the warranty and the terms of the individual agreements. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. Research and Development Research and development (R&D) costs are expensed in the period in which they are incurred. R&D costs include materials and equipment that have no alternative future use, depreciation on equipment and facilities currently used for R&D purposes, personnel costs, contract services and reasonable allocations of indirect costs, if clearly related to an R&D activity. Expenditures in the pre-production phase of an R&D project are recorded as R&D expense. However, costs incurred in the pre-production phase that are associated with output actually used in production are recorded in cost of sales. A project is considered finished with pre-production efforts when management determines that it has achieved acceptable levels of scrap and yield, which vary by project. Expenditures related to ongoing production are recorded in cost of sales. Restructuring The Company records restructuring charges associated with management-approved restructuring plans, which could include the elimination of job functions, closure or relocation of facilities, reorganization of operations, changes in management structure, workforce reductions or other actions. Restructuring charges may include ongoing and enhanced termination benefits related to employee separations, contract termination costs, impairment of certain assets and other related costs associated with exit or disposal activities. Severance benefits are provided to employees primarily under the Company’s ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination and it becomes probable that employees will be separated and entitled to benefits at amounts that can be reasonably estimated. In some instances, the Company enhances its ongoing termination benefits with one-time termination benefits, which are recognized when employees are notified of their enhanced termination benefits. Foreign Currency Translation For the years ended December 31, 2022, 2021 and 2020 , approximately 38 %, 42 % and 39 %, respectively, of the Company’s net sales were to customers located outside the U.S. A portion of these sales was denominated in currencies other than the U.S. dollar, particularly sales from the Company’s foreign subsidiaries. The financial position and results of operations of certain of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Revenues and expenses of these subsidiaries have been translated into U.S. dollars at average exchange rates prevailing during the period. Assets and liabilities of these subsidiaries have been translated at the exchange rates as of the balance sheet date. Translation gains and losses are recorded in accumulated other comprehensive loss. Upon sale or liquidation of an investment in a foreign subsidiary, the amount of net translation gains or losses that have been accumulated in other comprehensive loss attributable to that investment are reported as a gain or loss in earnings in the period in which the sale or liquidation occurs. Aggregate foreign currency gains and losses, such as those resulting from the settlement of receivables or payables, foreign currency contracts and short-term intercompany advances in a currency other than the subsidiary’s functional currency, are recorded currently in earnings (included in other expense, net) and resulted in losses of $ 4.1 million, $ 4.4 million and $ 19.2 million during the years ended December 31, 2022, 2021 and 2020, respectively. Foreign currency remeasurement gains and losses related to certain long-term intercompany loans that are not expected to be settled in the foreseeable future are recorded in accumulated other comprehensive loss. Equity-Based Compensation The estimated fair value of stock awards is recognized as expense over the requisite service periods. Forfeitures of stock awards are recognized as they occur. The Company records deferred tax assets related to compensation expense for awards that are expected to result in future tax deductions for the Company, based on the amount of compensation cost recognized and the Company’s statutory tax rate in the jurisdiction in which it expects to receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and actual tax deductions reported on the Company’s income tax return are recorded in the Consolidated Statements of Operations within income tax expense benefit. Income Taxes Deferred income taxes reflect the future tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The Company records a valuation allowance, when appropriate, to reduce deferred tax assets to an amount that is more likely than not to be realized. Tax benefits that result from uncertain tax positions may be recognized only if they are considered more likely than not to be sustainable, based on their technical merits. The amount of benefit to be recognized is the largest amount of tax benefit that is at least 50 % likely to be realized. In addition, the Company does not provide for U.S. taxes related to the foreign currency remeasurement gains and losses on its long-term intercompany loans with foreign subsidiaries. These loans are not expected to be repaid in the foreseeable future, and the foreign currency gains and losses are therefore recorded to accumulated other comprehensive loss. The Company records the income tax effects related to the activity of its defined benefit plans and hedging instruments in accumulated other comprehensive loss at the currently enacted tax rate and reclassifies it to net income (loss) in the same period that the related pre-tax accumulated comprehensive income (loss) reclassifications are recognized. Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) is computed by dividing net income (loss), less any dividends related to the Series A convertible preferred stock (Convertible Preferred Stock), by the weighted average number of common shares outstanding during the period. The numerator in diluted EPS is based on the basic EPS numerator adjusted to add back any dividends related to the Convertible Preferred Stock, subject to antidilution requirements. The denominator used in diluted EPS is based on the basic EPS computation plus the effect of potentially dilutive common shares related to the Convertible Preferred Stock and equity-based compensation plans, subject to antidilution requirements. For the years ended December 31, 2022, 2021 and 2020 , 11.3 million, 12.2 million and 17.4 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because either the effect was antidilutive or the performance conditions were not met. Of those amounts, for the years ended December 31, 2022, 2021 and 2020, 2.9 million, 4.9 million and 4.4 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the years ended December 31, 2022, 2021 and 2020, 39.1 million, 37.9 million and 37.1 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were anti-dilutive; however, they may have been considered dilutive if the Company had not been in a net loss position . Year ended December 31, 2022 2021 2020 Numerator: Net loss $ ( 1,286.9 ) $ ( 462.6 ) $ ( 573.4 ) Dividends on Series A convertible preferred stock ( 59.0 ) ( 57.3 ) ( 56.1 ) Net loss attributable to common stockholders $ ( 1,345.9 ) $ ( 519.9 ) $ ( 629.5 ) Denominator: Weighted average common shares outstanding – basic 207.4 203.6 196.8 Dilutive effect of as-if converted Series A convertible preferred stock — — — Dilutive effect of equity-based awards — — — Weighted average common shares outstanding – diluted 207.4 203.6 196.8 Loss per share: Basic $ ( 6.49 ) $ ( 2.55 ) $ ( 3.20 ) Diluted $ ( 6.49 ) $ ( 2.55 ) $ ( 3.20 ) Concentrations of Risk Non-derivative financial instruments used by the Company in the normal course of business include letters of credit and commitments to extend credit, primarily accounts receivable. The Company generally does not require collateral on its accounts receivable. These financial instruments involve risk, including the credit risk of nonperformance by the counterparties to those instruments, and the actual loss may exceed the reserves provided in the Company’s Consolidated Balance Sheets. See Note 16 for further discussion of customer-related concentrations of risk. The Company manages its exposures to credit risk associated with accounts receivable using such tools as credit approvals, credit limits and monitoring procedures. CommScope estimates the allowance for doubtful accounts based on the actual payment history and individual circumstances of significant customers as well as the age of receivables. In management’s opinion, as of December 31, 2022, the Company did not have significant unreserved risk of credit loss due to the non-performance of customers or other counterparties related to amounts receivable. However, an adverse change in financial condition of a significant customer or group of customers or in the telecommunications industry could materially affect the Company’s estimates related to doubtful accounts. The principal raw materials and components purchased by CommScope (aluminum, copper, steel, bimetals, optical fiber, plastics and other polymers, capacitors, memory devices and silicon chips) are subject to changes in market price as these materials are linked to various commodity markets. The Company attempts to mitigate these risks through effective requirements planning and by working closely with its key suppliers to obtain the best possible pricing and delivery terms. The Company relies on sole suppliers or a limited group of suppliers for certain key components (memory devices, capacitors and silicon chips), subassemblies and modules and a limited group of contract manufacturers to manufacture a significant portion of its products. Any disruption or termination of these arrangements could have a material adverse impact on the Company’s results of operations. Recent Accounting Pronouncements Adopted in 2022 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . The new guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share, along with expanded disclosures. The impact of adopting this new guidance was not material to the consolidated financial statements. Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The new guidance improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability, as well as payment terms which affect subsequent revenue recognized by the acquirer. According to the guidance, at the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if the acquirer had originated the contracts. The adoption of this new guidance had no impact to the consolidated financial statements but will be applied prospectively to future business combinations. Issued but Not Adopted In September 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-04, Liabilities–Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The new guidance is expected to improve the transparency of supplier finance programs by requiring that a buyer in a supplier finance program disclose sufficient qualitative and quantitative information about the program to allow a user of its financial statements to understand the program's nature, activity during the period, changes from period to period and potential magnitude. ASU No. 2022-04 is effective for the Company as of January 1, 2023 on a retrospective basis including interim periods within those fiscal years, except for the requirement to disclose rollforward information which is effective for the Company as of January 1, 2024. Early adoption is permitted. The Company had no material supplier finance programs in 2022. The Company does not expect this guidance to have a material impact on the consolidated financial statements. In March 2020, January 2021 and December 2022, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope and ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, respectively. Together, the ASUs provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The most recent amendment defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 3. GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents details of the Company’s intangible assets other than goodwill as of December 31, 2022 and 2021: 2022 2021 Gross Carrying Accumulated Amortization Net Carrying Amount Gross Carrying Accumulated Amortization Net Carrying Amount Customer base $ 3,486.5 $ 1,941.5 $ 1,545.0 $ 3,508.4 $ 1,779.3 $ 1,729.1 Trade names and trademarks 1,020.6 502.9 517.7 1,022.3 439.8 582.5 Patents and technologies 2,014.4 1,603.6 410.8 2,025.7 1,310.0 715.7 Other 58.3 58.3 — 58.3 58.3 — Total intangible assets $ 6,579.8 $ 4,106.3 $ 2,473.5 $ 6,614.7 $ 3,587.4 $ 3,027.3 There were no impairments of finite-lived intangible assets identified during the years ended December 31, 2022, 2021 or 2020. Amortization expense for intangible assets was $ 543.0 million, $ 613.0 million and $ 630.5 million for the years ended December 31, 2022, 2021 and 2020 , respectively. Future amortization expense as of December 31, 2022 is as follows: Estimated 2023 $ 429.8 2024 342.7 2025 277.8 2026 229.1 2027 199.1 Thereafter 995.0 The following table presents the activity in goodwill by reportable segment. December 31, 2021 Activity December 31, 2022 Goodwill Accumulated Impairment Losses Total Additions (Deductions) Impairment Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total CCS $ 2,307.3 $ ( 51.5 ) $ 2,255.8 $ — $ — $ ( 26.4 ) $ 2,280.9 $ ( 51.5 ) $ 2,229.4 OWN 666.6 ( 159.5 ) 507.1 — — ( 6.3 ) 660.3 ( 159.5 ) 500.8 NICS 653.0 ( 41.2 ) 611.8 — — ( 3.6 ) 649.4 ( 41.2 ) 608.2 ANS 1,999.1 ( 142.1 ) 1,857.0 — ( 1,119.6 ) ( 3.4 ) 1,995.7 ( 1,261.7 ) 734.0 Home 413.2 ( 413.2 ) — — — — 413.2 ( 413.2 ) — Total $ 6,039.2 $ ( 807.5 ) $ 5,231.7 $ — $ ( 1,119.6 ) $ ( 39.7 ) $ 5,999.5 $ ( 1,927.1 ) $ 4,072.4 December 31, 2020 Activity December 31, 2021 Goodwill Accumulated Impairment Losses Total Additions (Deductions) Impairment Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total CCS $ 2,323.8 $ ( 51.5 ) $ 2,272.3 $ — $ — $ ( 16.5 ) $ 2,307.3 $ ( 51.5 ) $ 2,255.8 OWN 670.6 ( 159.5 ) 511.1 — — ( 4.0 ) 666.6 ( 159.5 ) 507.1 NICS 657.8 ( 41.2 ) 616.6 — — ( 4.8 ) 653.0 ( 41.2 ) 611.8 ANS 2,028.6 ( 142.1 ) 1,886.5 ( 13.7 ) — ( 15.8 ) 1,999.1 ( 142.1 ) 1,857.0 Home 399.5 ( 399.5 ) — 13.7 ( 13.7 ) — 413.2 ( 413.2 ) — Total $ 6,080.3 $ ( 793.8 ) $ 5,286.5 $ — $ ( 13.7 ) $ ( 41.1 ) $ 6,039.2 $ ( 807.5 ) $ 5,231.7 During the annual impairment test performed in the fourth quarter of 2022 and in conjunction with the development of its 2023 and long-range plans, the Company identified changes in the ANS reporting unit's expected future cash flows due to various market trends expected to affect the business, including technology shifts affecting hardware sales, trends affecting bandwidth growth and other operational challenges, as well as an increase in the cost of capital. As a result, the Company determined the goodwill balance in the ANS reporting unit was impaired and recorded a $ 1,119.6 million impairment charge. The ANS reporting unit is the same as the ANS segment. In the second quarter of 2021, management shifted certain product lines from the Company’s ANS segment to its Home segment to better align the Home segment with how the business is being managed. The realignment of product lines changed the composition of the Company’s reporting units which resulted in the reallocation of $ 13.7 million of goodwill from the ANS reporting unit, within the ANS segment, to the Home Networks reporting unit, within the Home segment, which is reflected as additions (deductions) in the table above. During the annual impairment test performed in the fourth quarter of 2021 and in conjunction with the development of the Company's 2022 and long-range plans, the Company identified further weakness in the projected results of its Home Networks reporting unit that stemmed from the continued decline in customer demand for video products. As a result, the Company determined the goodwill balance in the Home Networks reporting unit was impaired and recorded a $ 13.7 million impairment charge. The goodwill balance for the year ended December 31, 2020 reflects the final measurement period adjustments from the ARRIS acquisition. During the second quarter of 2020, the Company recorded a $ 206.7 million goodwill impairment charge relating to the Home Networks reporting unit which resulted in a full impairment of the remaining goodwill in the Home segment, and as such, the Home segment had no remaining goodwill balance as of December 31, 2020. Estimating the fair value of a reporting unit involves uncertainties because it requires management to develop numerous assumptions, including assumptions about the future growth and potential volatility in revenues and costs, capital expenditures, industry economic factors and future business strategy. Changes in projected revenue growth rates, projected operating income margins or estimated discount rates due to uncertain market conditions, loss of one or more key customers, changes in the Company’s strategy, changes in technology or other factors could negatively affect the fair value in one or more of the Company’s reporting units and result in a material impairment charge in the future. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Net Sales See Note 16 for the presentation of net sales by segment and geographic region. Allowance for Doubtful Accounts Year Ended December 31, 2022 2021 2020 Allowance for doubtful accounts, beginning of period $ 63.7 $ 40.3 $ 35.4 Provision 22.6 25.8 5.0 Write-offs ( 2.1 ) ( 0.9 ) ( 3.2 ) Foreign exchange and other ( 1.4 ) ( 1.5 ) 3.1 Allowance for doubtful accounts, end of period $ 82.8 $ 63.7 $ 40.3 During the year ended December 31, 2022, the Company recorded an allowance for $ 20.9 million to reserve the balance due from a distributor in the OWN segment based on deterioration in the customer’s risk profile. During the year ended December 31, 2021, the Company recorded an allowance for $ 30.3 million to reserve the balance due from a value-added reseller in the Home segment due to deterioration in the customer’s risk profile. These charges are included in the provision line in the table above and in selling, general and administrative expense on the Consolidated Statements of Operations. Customer Contract Balances The following table provides the balance sheet location and amounts of contract assets, or unbilled accounts receivable, and contract liabilities, or deferred revenue, from contracts with customers as of December 31, 2022 and December 31, 2021. December 31, Contract Balance Type Balance Sheet Location 2022 2021 Unbilled accounts receivable Accounts receivable, net of allowance for doubtful accounts $ 35.3 $ 35.0 Deferred revenue - current Accrued and other liabilities $ 97.9 $ 94.6 Deferred revenue - noncurrent Other noncurrent liabilities 63.4 61.1 Total contract liabilities $ 161.3 $ 155.7 There were no material changes to contract asset balances for the year ended December 31, 2022 as a result of changes in estimates or impairments. The change in the contract liability balance from December 31, 2021 to December 31, 2022 was primarily due to upfront support billings to be recognized over the support term. During the year ended December 31, 2022, the Company recognized $ 88.3 million of revenue related to contract liabilities recorded as of December 31, 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 5. LEASES The Company has operating type leases for real estate, equipment and vehicles both in the U.S. and internationally. As of December 31, 2022 and 2021, the Company had no finance type leases. Operating lease expense was $ 97.6 million, $ 102.1 million and $ 105.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. Operating lease expense included period cost for short-term, cancellable and variable leases that were not included in lease liabilities, of $ 36.2 million, $ 33.2 million and $ 31.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company occasionally subleases all or a portion of certain unutilized real estate facilities. As of December 31, 2022, the Company’s sublease arrangements were classified as operating type leases and the income amounts were not material for the years ended December 31, 2022, 2021 and 2020, respectively. Supplemental cash flow information related to operating leases: Year Ended December 31, 2022 2021 2020 Operating cash paid to settle lease liabilities $ 59.4 $ 71.5 $ 74.6 Right of use asset additions in exchange for lease liabilities 43.5 25.3 21.9 Supplemental balance sheet information related to operating leases: December 31, Balance Sheet Location 2022 2021 Right of use assets Other noncurrent assets $ 149.0 $ 162.5 Lease liabilities - current Accrued and other liabilities $ 47.7 $ 46.7 Lease liabilities - noncurrent Other noncurrent liabilities 123.5 140.8 Total lease liabilities $ 171.2 $ 187.5 Weighted average remaining lease term (in years) 5.3 Weighted average discount rate 8.8 % Future minimum lease payments under non-cancellable leases as of December 31, 2022 are as follows: Operating Leases 2023 57.2 2024 45.0 2025 31.8 2026 24.4 2027 15.0 Thereafter 47.9 Total minimum lease payments $ 221.3 Less: imputed interest ( 50.1 ) Total $ 171.2 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | 6. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Accounts Receivable December 31, 2022 2021 Accounts receivable - trade $ 1,545.3 $ 1,499.9 Accounts receivable - other 61.1 96.4 Allowance for doubtful accounts ( 82.8 ) ( 63.7 ) Total accounts receivable, net $ 1,523.6 $ 1,532.6 Inventories December 31, 2022 2021 Raw materials $ 535.8 $ 436.0 Work in process 212.7 178.3 Finished goods 839.6 821.5 Total inventories, net $ 1,588.1 $ 1,435.8 Property, Plant and Equipment December 31, 2022 2021 Land and land improvements $ 52.2 $ 54.1 Buildings and improvements 340.9 334.4 Machinery and equipment 1,038.1 968.0 Construction in progress 51.9 87.2 1,483.1 1,443.7 Accumulated depreciation ( 873.5 ) ( 787.4 ) Total property, plant and equipment, net $ 609.6 $ 656.3 D epreciation expense was $ 127.2 million, $ 136.7 million and $ 158.3 million during the years ended December 31, 2022, 2021 and 2020 , respectively. No interest was capitalized during the years ended December 31, 2022, 2021 or 2020. Accrued and Other Liabilities December 31, 2022 2021 Compensation and employee benefit liabilities $ 301.3 $ 304.7 Accrued interest 118.1 118.3 Deferred revenue 97.9 94.6 Contract manufacturer inventory repurchase obligation 79.1 14.5 Restructuring liabilities 58.9 41.0 Operating lease liabilities 47.7 46.7 Product warranty accrual 44.8 54.0 Other 302.2 316.0 Total accrued and other liabilities $ 1,050.0 $ 989.8 Accumulated Other Comprehensive Loss The following table presents changes in accumulated other comprehensive loss (AOCL), net of tax: Year Ended December 31, 2022 2021 Foreign currency translation Balance at beginning of period $ ( 165.8 ) $ ( 80.5 ) Other comprehensive loss ( 104.3 ) ( 86.4 ) Amounts reclassified from AOCL ( 0.2 ) 1.1 Balance at end of period $ ( 270.3 ) $ ( 165.8 ) Defined benefit plan activity Balance at beginning of period $ ( 13.4 ) $ ( 36.4 ) Other comprehensive income (loss) ( 1.4 ) 24.1 Amounts reclassified from AOCL — ( 1.1 ) Balance at end of period $ ( 14.8 ) $ ( 13.4 ) Hedging instruments Balance at beginning of period $ ( 27.2 ) $ ( 39.0 ) Other comprehensive income 16.0 11.8 Balance at end of period $ ( 11.2 ) $ ( 27.2 ) Net AOCL at end of period $ ( 296.3 ) $ ( 206.4 ) Amounts reclassified from net AOCL related to foreign currency translation and defined benefit plans are recorded in other expense, net in the Consolidated Statements of Operations. Cash Flow Information Year Ended December 31, 2022 2021 2020 Cash paid during the period for: Income taxes, net of refunds $ 130.7 $ 79.4 $ 94.4 Interest 563.2 525.9 520.9 |
Financing
Financing | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing | 7. FINANCING December 31, 2022 2021 7.125 % senior notes due July 2028 $ 700.0 $ 700.0 5.00 % senior notes due March 2027 750.0 750.0 8.25 % senior notes due March 2027 1,000.0 1,000.0 6.00 % senior notes due June 2025 1,300.0 1,300.0 4.75 % senior secured notes due September 2029 1,250.0 1,250.0 6.00 % senior secured notes due March 2026 1,500.0 1,500.0 Senior secured term loan due April 2026 3,096.0 3,128.0 Senior secured revolving credit facility — — Total principal amount of debt $ 9,596.0 $ 9,628.0 Less: Original issue discount, net of amortization ( 15.9 ) ( 20.3 ) Less: Debt issuance costs, net of amortization ( 78.5 ) ( 97.2 ) Less: Current portion ( 32.0 ) ( 32.0 ) Total long-term debt $ 9,469.6 $ 9,478.5 Senior Notes As of December 31, 2022, the Company had outstanding two series of senior secured notes: (1) $ 1,250.0 million of 4.75 % senior secured notes due September 1, 2029 (the 2029 Secured Notes) issued by CommScope, Inc. in August 2021; and (2) $ 1.5 billion of 6.00 % senior secured notes due March 1, 2026 issued by CommScope, Inc. in February 2019 (the 2026 Secured Notes and, together with the 2029 Secured Notes, the Secured Notes). As of December 31, 2022, the Company had outstanding four series of senior unsecured notes: (1) $ 700.0 million initial aggregate principal amount of 7.125 % senior notes due July 1, 2028 (the 2028 Notes) issued by CommScope, Inc. in July 2020; (2) $ 750.0 million initial aggregate principal amount of 5.00 % senior notes due March 15, 2027 issued by CommScope Technologies LLC (CommScope Technologies), a wholly owned subsidiary of the Company, in March 2017 (the 5.00 % 2027 Notes); (3) $ 1.3 billion aggregate principal amount of 6.00 % senior notes due June 15, 2025 issued by CommScope Technologies in June 2015 (the 2025 Notes, and together with the 5.00 % 2027 Notes, the CommScope Technologies Notes); (4) $ 1.0 billion initial aggregate principal amount of 8.25 % senior notes due March 1, 2027 issued by CommScope, Inc. in February 2019 (the 8.25 % 2027 Notes and, together with the 2028 Notes, the CommScope, Inc. Notes; the Secured Notes, the CommScope Technologies Notes and the CommScope, Inc. Notes, collectively, the Senior Notes). The indentures governing the Senior Notes contain covenants that restrict the ability of CommScope, Inc. and its restricted subsidiaries to, among other things, incur additional debt, make certain payments, including payment of dividends (except, in the case of the CommScope, Inc. Notes and the Secured Notes, with respect to the Convertible Preferred Stock) or repurchases of equity interests of CommScope, Inc. or the applicable issuer, make loans or acquisitions or capital contributions and certain investments, incur certain liens, sell assets, merge or consolidate or liquidate other entities and enter into certain transactions with affiliates. There are no financial maintenance covenants in the indentures governing the Senior Notes. Events of default under the indentures governing the Senior Notes include, among others, non-payment of principal or interest when due, covenant defaults, bankruptcy and insolvency events and cross acceleration to material debt. 4.75 % Senior Secured Notes due 2029 and 6.00 % Senior Secured Notes due 2026 (the Secured Notes) The 2029 Secured Notes mature on September 1, 2029 and the 2026 Secured Notes mature on March 1, 2026 . Interest is payable on the Secured Notes semi-annually in arrears on March 1 and September 1 of each year. The Secured Notes are guaranteed on a senior secured basis by the Company and each of CommScope, Inc.’s existing and future wholly owned domestic restricted subsidiaries that is an obligor under the senior secured credit facilities or certain other debt, subject to certain exceptions. The Secured Notes and the related guarantees are secured on a first-priority basis by security interests in all of the assets that secure indebtedness under the 2026 Term Loan on a first-priority basis, and on a second-priority basis in all assets that secure the Revolving Credit Facility (as defined below) on a first-priority basis and the 2026 Term Loan on a second-priority basis. The Secured Notes and the related guarantees rank senior in right of payment to all of CommScope, Inc.’s and the guarantors’ subordinated indebtedness and equally in right of payment with all of CommScope, Inc.’s and the guarantors’ senior indebtedness (without giving effect to collateral arrangements), including the senior secured credit facilities and the other Senior Notes. The Secured Notes and the related guarantees are effectively senior to all of CommScope, Inc.’s and the guarantors’ unsecured indebtedness and debt secured by a lien junior to the liens securing the Secured Notes, in each case to the extent of the value of the collateral, and effectively equal to all of CommScope, Inc.’s and the guarantors’ senior indebtedness secured on the same priority basis as the Secured Notes, including the 2026 Term Loan. The Secured Notes and the related guarantees are effectively subordinated to any of CommScope, Inc.’s or the guarantors’ indebtedness that is secured by assets that do not constitute collateral for the Secured Notes and effectively subordinated to any of CommScope, Inc.’s or the guarantors’ indebtedness that is secured by a senior-priority lien, including under the Revolving Credit Facility, in each case to the extent of the value of the assets securing such indebtedness. In addition, the Secured Notes and related guarantees are structurally subordinated to all existing and future liabilities (including trade payables) of CommScope, Inc.’s subsidiaries that do not guarantee the Secured Notes. The Secured Notes may be redeemed prior to maturity under certain circumstances. Upon certain change of control events, the Secured Notes may be redeemed at the option of the holders at 101 % of their face amount, plus accrued and unpaid interest. The 2029 Secured Notes may be redeemed on or after September 1, 2024 by CommScope, Inc. at the redemption prices specified in the indenture governing the 2029 Secured Notes. Prior to September 1, 2024 , the 2024 Secured Notes may be redeemed by CommScope, Inc. at a redemption price equal to 100 % of their principal amount, plus a make-whole premium (as specified in the indenture governing the 2029 Secured Notes), plus accrued and unpaid interest. Prior to September 1, 2024 , under certain circumstances, CommScope, Inc. may also redeem up to 40 % of the aggregate principal amount of the 2029 Secured Notes at a redemption price of 104.750 %, plus accrued and unpaid interest, using the proceeds of certain equity offerings. At any time prior to September 1, 2024 , CommScope, Inc. may redeem during each calendar year up to 10.0 % of the aggregate principal amount of the 2029 Secured Notes at a redemption price equal to 103.0 % of the aggregate principal amount of the 2029 Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. The 2026 Secured Notes may be redeemed by CommScope, Inc. at the redemption prices specified in the indenture governing the 2026 Secured Notes. 7.125% Senior Notes due 2028 and 8.25% Senior Notes due 2027 (the CommScope, Inc. Notes) The 2028 Notes mature on July 1, 2028 and the 8.25 % 2027 Notes mature on March 1, 2027 . Interest is payable semi-annually in arrears on the 2028 Notes on July 1 and January 1 of each year and on the 8.25% 2027 Notes on March 1 and September 1 of each year. The CommScope, Inc. Notes are guaranteed on a senior unsecured basis by each of CommScope, Inc.’s existing and future wholly owned domestic restricted subsidiaries that is an obligor under the senior secured credit facilities or certain other capital markets debt, subject to certain exceptions. The CommScope, Inc. Notes and the related guarantees rank senior in right of payment to all of CommScope, Inc.’s and the guarantors’ subordinated indebtedness and equally in right of payment with all of CommScope, Inc.’s and the guarantors’ senior indebtedness (without giving effect to collateral arrangements), including the senior secured credit facilities and the other Senior Notes. The CommScope, Inc. Notes and the related guarantees are effectively junior to all of CommScope, Inc.’s and the guarantors’ existing and future secured indebtedness, including the Secured Notes and the senior secured credit facilities, to the extent of the value of the assets securing such secured indebtedness. In addition, the CommScope, Inc. Notes and related guarantees are structurally subordinated to all existing and future liabilities (including trade payables) of CommScope, Inc.’s subsidiaries that do not guarantee the CommScope, Inc. Notes. The CommScope, Inc. Notes may be redeemed prior to maturity under certain circumstances. Upon certain change of control events, the CommScope, Inc. Notes may be redeemed at the option of the holders at 101 % of their principal amount, plus accrued and unpaid interest. The 2028 Notes may be redeemed by CommScope, Inc. on or after July 1, 2023 at the redemption prices specified in the indenture governing the 2028 Notes. Prior to July 1, 2023, the 2028 Notes may be redeemed by CommScope, Inc. at a redemption price equal to 100 % of their principal amount, plus a make-whole premium (as specified in the indenture governing the 2028 Notes), plus accrued and unpaid interest. Prior to July 1, 2023 , under certain circumstances, CommScope, Inc. may also redeem up to 40 % of the aggregate principal amount of the 2028 Notes at a redemption price of 107.125 %, plus accrued and unpaid interest, using the proceeds of certain equity offerings. The 8.25% 2027 Notes may be redeemed by CommScope, Inc. at the redemption prices specified in the indenture governing the 8.25% 2027 Notes. 5.00% Senior Notes due 2027 and 6.00% Senior Notes due 2025 (the CommScope Technologies Notes) The 5.00 % 2027 Notes mature on March 15, 2027 and the 2025 Notes mature on June 15, 2025 . Interest is payable on the 5.00% 2027 Notes semi-annually in arrears on March 15 and September 15 of each year and on the 2025 Notes on June 15 and December 15 of each year. The CommScope Technologies Notes are guaranteed on a senior unsecured basis by CommScope, Inc. and each of CommScope, Inc.’s existing and future wholly owned domestic restricted subsidiaries (other than CommScope Technologies) that is an obligor under the senior secured credit facilities or certain other capital markets debt, subject to certain exceptions. The CommScope Technologies Notes and the related guarantees rank senior in right of payment to all of CommScope Technologies’ and the guarantors’ subordinated indebtedness and equally in right of payment with all of CommScope Technologies’ and the guarantors’ senior indebtedness (without giving effect to collateral arrangements), including the senior secured credit facilities and the other Senior Notes. The CommScope Technologies Notes and the related guarantees are effectively junior to all of CommScope Technologies’ and the guarantors’ existing and future secured indebtedness, including the Secured Notes and the senior secured credit facilities, to the extent of the value of the assets securing such secured indebtedness. In addition, the CommScope Technologies Notes and related guarantees are structurally subordinated to all existing and future liabilities (including trade payables) of CommScope, Inc.’s subsidiaries that do not guarantee the CommScope Technologies Notes. The CommScope Technologies Notes may be redeemed prior to maturity under certain circumstances. Upon certain change of control events, the CommScope Technologies Notes may be redeemed at the option of the holders at 101 % of their principal amount, plus accrued and unpaid interest. The 5.00% 2027 Notes may be redeemed by CommScope Technologies at the redemption prices specified in the indenture governing the 5.00% 2027 Notes. The 2025 Notes may be redeemed by CommScope Technologies at the redemption prices specified in the indenture governing the 2025 Notes. Senior Secured Credit Facilities Senior Secured Term Loan due 2026 The 2026 Term Loan has scheduled amortization payments of $ 32.0 million per year due in equal quarterly installments, which began with the quarter ended December 31, 2019, with the balance due at maturity ( April 2026 ). For the year ended December 31, 2022, the interest rate was, at the Company’s option, either (1) the base rate (which is the highest of (w) the greater of the then-current federal funds rate set by the Federal Reserve Bank of New York and the overnight federal funds rate, in each case, plus 0.5 %, (x) the prime rate on such day, (y) the one-month Eurodollar rate published on such date plus 1.00 % and (z) 1.00 % per annum) plus an applicable margin of 2.25 % or (2) one-, two-, three- or six-month LIBOR or, if available from all lenders, 12-month LIBOR or any shorter period (selected at the option of CommScope, Inc.) plus an applicable margin of 3.25 %. For the year ended December 31, 2022, the 2026 Term Loan was subject to a LIBOR floor of 0.00 %. Subject to certain conditions, the 2026 Term Loan may be increased or a new incremental term loan facility may be added to increase the capacity by up to the sum of the greater of $ 950.0 million and 50 % of Consolidated EBITDA, as defined in the credit agreement governing the 2026 Term Loan (the Credit Agreement), plus an unlimited amount as long as on a pro forma basis the Company meets certain net leverage ratios or fixed charge ratios as defined in the Credit Agreement. CommScope, Inc. may voluntarily prepay loans under the 2026 Term Loan, subject to minimum amounts, with prior notice but without premium or penalty. CommScope, Inc. must prepay the 2026 Term Loan with the net cash proceeds of certain asset sales, the incurrence or issuance of specified refinancing indebtedness and, commencing with the fiscal year ending in December 2020, 50 % of excess cash flow (such percentage subject to reduction based on the achievement of specified Consolidated First Lien Net Leverage Ratios), in each case, subject to certain reinvestment rights and other exceptions. CommScope, Inc.’s obligations under the 2026 Term Loan are guaranteed by the Company and each of CommScope, Inc.’s direct and indirect wholly owned U.S. subsidiaries (subject to certain permitted exceptions based on immateriality thresholds of aggregate assets and revenues of excluded U.S. subsidiaries). The 2026 Term Loan is secured by a lien on substantially all of CommScope, Inc.’s and the guarantors’ current and fixed assets (subject to certain exceptions), and the 2026 Term Loan will have a first-priority lien on all fixed assets and a second-priority lien on all current assets (second in priority to the liens securing the Revolving Credit Facility), in each case, subject to other permitted liens. The 2026 Term Loan contains customary negative covenants consistent with those applicable to the 2026 Secured Notes, including, but not limited to, restrictions on the ability of CommScope, Inc. and its subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, pay dividends (except with respect to the Convertible Preferred Stock) or make other restricted payments, sell or otherwise transfer assets or enter into certain transactions with affiliates. The 2026 Term Loan provides that, upon the occurrence of certain events of default, the obligations thereunder may be accelerated. Such events of default will include payment defaults, material inaccuracies of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, voluntary and involuntary bankruptcy proceedings, material money judgments, material pension-plan events, change of control and other customary events of default. During the year ended December 31, 2022, the Company made scheduled amortization payments totaling $ 32.0 million due in equal quarterly installments on the 2026 Term Loan. The current portion of long-term debt reflects $ 32.0 million of repayments due under the 2026 Term Loan. No portion of the 2026 Term Loan was reflected as a current portion of long-term debt as of December 31, 2022 related to the potentially required excess cash flow payment because no such payment is expected to be required. There was no excess cash flow payment required in 2022 related to 2021. Senior Secured Revolving Credit Facility On October 19, 2022, the Company completed the refinancing (the Refinancing) of the Company’s asset-based revolving credit facility (Revolving Credit Facility) which continues to provide borrowing capacity of up to $ 1.0 billion, subject to certain limitations, available to CommScope, Inc. and its U.S. subsidiaries designated as co-borrowers (the U.S. Revolving Borrowers). The Refinancing, among other things, (i) refinanced in full all existing loans outstanding under the Revolving Credit Facility immediately prior to the Refinancing, (ii) extended the maturity of the Revolving Credit Facility from April 2024 to the earliest of (x) September 30, 2027, (y) the date the commitments of the lenders under the Revolving Credit Agreement are reduced to zero and (z) 91 days prior to the maturity date of any other indebtedness of a "Credit Party" (as defined in the credit agreement governing the Revolving Credit Facility) that has a scheduled maturity or weighted average life to maturity that is prior to September 30, 2027 (subject to certain exceptions) and (iii) replaced the existing revolving loan commitments outstanding under the Revolving Credit Facility immediately prior to the Refinancing with a new tranche of commitments (the Tranche A Revolving Commitments) for borrowings denominated in U.S. dollars, euros and pounds sterling made to the U.S. Revolving Borrowers and a separate tranche of commitments (the Tranche B Revolving Commitments) for borrowings denominated in euros, pounds sterling and Swiss francs made to the U.S. Revolving Borrowers and certain of the Company's wholly owned Irish, English and Swiss subsidiaries that are joined as borrowers under the Revolving Credit Facility (such subsidiaries, the European Revolving Borrowers and, together with the U.S. Revolving Borrowers, the Revolving Borrowers). Prior to the joinder of any European Revolving Borrower, Tranche A Loans are available to the U.S. Revolving Borrowers in an aggregate amount equal to (i) the lesser of (x) $ 1.0 billion and (y) the borrowing base of the U.S. Revolving Borrowers minus (ii) the aggregate amount of all "Tranche A Revolving Credit Outstandings" (as defined in the credit agreement governing the Revolving Credit Facility). From and after the joinder of any European Revolving Borrower, the Revolving Borrowers may reallocate an amount of the Tranche A Revolving Commitments to Tranche B Revolving Commitments, and Tranche B Loans will then be available to the Revolving Borrowers in an amount equal to (i) the lesser of (x) the Tranche B Revolving Commitments and (y) the sum of the borrowing base of the European Revolving Borrowers minus (ii) the aggregate amount of all "Tranche B Revolving Credit Outstandings" (as defined in the credit agreement governing the Revolving Credit Facility). At no time will the aggregate commitments of the lenders under the Revolving Credit Facility exceed $ 1.0 billion. Borrowing base calculations are based on the sum of specific percentages of eligible accounts receivable and eligible inventory, minus the amount of any applicable reserves. The ability to draw under the Revolving Credit Facility or issue letters of credit is conditioned upon, among other things, delivery of prior written notice of a borrowing or issuance, as applicable, the ability of the Revolving Borrowers to reaffirm the representations and warranties contained in the credit agreement governing the Revolving Credit Facility and the absence of any default or event of default. As of December 31, 2022, the Company had no outstanding borrowings under the Revolving Credit Facility and had availability of $ 908.8 million, after giving effect to borrowing base limitations and outstanding letters of credit. Letters of credit under the Revolving Credit Facility are limited to the lesser of (x) $ 250.0 million and (y) the aggregate unused amount of commitments under the Revolving Credit Facility then in effect. Subject to certain conditions, the Revolving Credit Facility may be expanded by up to $ 400.0 million in additional commitments. Loans under the Revolving Credit Facility may be denominated, at the option of the Revolving Borrowers, (i) with respect to Tranche A Loans, in U.S. dollars, euros or pounds sterling, and (ii) with respect to Tranche B Loans, U.S. dollars, euros, pounds sterling or Swiss francs. Borrowings under the Revolving Credit Facility will bear interest at a floating rate, which can be either (1) an adjusted Term SOFR rate (for borrowings denominated in U.S. dollars), (2) the EURIBOR rate (for borrowings denominated in euros), (3) the Sterling Overnight Index Average (SONIA) (for borrowings denominated in pounds sterling) or (4) the Swiss Average Rate Overnight (SARON) (for borrowings denominated in Swiss francs), in each case, subject to certain adjustments plus an applicable margin of 1.25 % to 1.50 % or, at the option of the Revolving Borrowers, a base rate plus an applicable margin of 0.25 % to 0.50 %. The obligations of the U.S. Revolving Borrowers under the Revolving Credit Facility are guaranteed by the Company, CommScope, Inc. and each of CommScope, Inc.’s direct and indirect wholly owned U.S. subsidiaries (subject to certain permitted exceptions based on immateriality thresholds of aggregate assets and revenues of excluded U.S. subsidiaries). The Revolving Credit Facility is secured by a lien on substantially all of the U.S. Revolving Borrowers’ and the guarantors’ current and fixed assets (subject to certain exceptions). The Revolving Credit Facility has a first-priority lien on all current assets and a second-priority lien on all fixed assets (second in priority to the liens securing the 2029 Secured Notes, the 2026 Secured Notes and the 2026 Term Loan), in each case, subject to other permitted liens. The following fees are applicable under the Revolving Credit Facility: (i) an unused line fee of (x) 0.25 % per annum of the unused portion of the Revolving Credit Facility when the average unused portion of the facility is less than 50% of the aggregate commitments under the Revolving Credit Facility or (y) 0.375 % per annum of the unused portion of the Revolving Credit Facility when the average unused portion of the facility is equal to or greater than 50% of the aggregate commitments under the Revolving Credit Facility; (ii) a letter of credit participation fee on the aggregate stated amount of each letter of credit equal to the applicable margin for adjusted Term SOFR, EURIBOR, SONIA and SARON loans, as applicable; (iii) a letter of credit fronting fee of 0.125 % per annum, multiplied by the average aggregate daily maximum amount available to be drawn under all applicable letters of credit issued by such letter of credit issuer; and (iv) certain other customary fees and expenses of the lenders and agents thereunder . The Revolving Borrowers will be required to make prepayments under the Revolving Credit Facility at any time when, and to the extent that, the aggregate amount of the outstanding loans and letters of credit under the Revolving Credit Facility exceeds the lesser of the aggregate amount of commitments in respect of the Revolving Credit Facility and the borrowing base. The Revolving Credit Facility contains customary covenants, including, but not limited to, restrictions on the ability of CommScope, Inc. and its subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances or investments, pay dividends (except with respect to the Convertible Preferred Stock), sell or otherwise transfer assets, optionally prepay or modify terms of any junior indebtedness, enter into certain transactions with affiliates or change lines of business. The Revolving Credit Facility contains a Covenant Fixed Charge Coverage Ratio (as defined in the credit agreement governing the Revolving Credit Facility) of 1.00 to 1.00. The credit agreement governing the Revolving Credit Facility provides that the Covenant Fixed Charge Coverage Ratio must be tested and must exceed the level set forth above only in the event that excess availability under the Revolving Credit Facility is less than the greater of $ 80 million and 10 % of the maximum credit as of the end of the most recent fiscal quarter. As of December 31, 2022, the Company’s excess availability and Covenant Fixed Charge Coverage Ratio were in excess of the Revolving Credit Facility’s requirements. The Revolving Credit Facility provides that, upon the occurrence of certain events of default, the obligations thereunder may be accelerated and the lending commitments terminated. Such events of default include payment defaults, material inaccuracies of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, voluntary and involuntary bankruptcy proceedings, material money judgments, material pension-plan events, certain change of control events and other customary events of default. Other Matters The following table summarizes scheduled maturities of long-term debt as of December 31, 2022: 2023 2024 2025 2026 2027 Thereafter Scheduled maturities of long-term debt $ 32.0 $ 32.0 $ 1,332.0 $ 4,500.0 $ 1,750.0 $ 1,950.0 The Company’s non-guarantor subsidiaries held $ 3,664 million, or 31 %, of total assets and $ 1,029 million, or 8 %, of total liabilities as of December 31, 2022 and accounted for $ 2,708 million, or 29 %, of net sales for the year ended December 31, 2022. All amounts presented exclude intercompany balances. The Company is dependent upon the earnings and cash flow of its subsidiaries to make certain payments, including debt and interest payments. Certain subsidiaries may have limitations or restrictions on transferring funds to other subsidiaries that may be necessary to meet those requirements. The weighted average effective interest rate on outstanding borrowings, including the impact of the interest rate swap, and the amortization of debt issuance costs and original issue discount, was 6.91 % at December 31, 2022 and 5.74 % at December 31, 2021 . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 8. DERIVATIVES AND HEDGING ACTIVITIES Derivatives Not Designated As Hedging Instruments The Company uses forward contracts to hedge a portion of its balance sheet foreign exchange re-measurement risk and to hedge certain planned foreign currency expenditures. As of December 31, 2022, the Company had foreign exchange contracts outstanding with maturities of up to eight months and aggregate notional values of $ 522.2 million (based on exchange rates as of December 31, 2022). Unrealized gains and losses resulting from these contracts are recognized in other expense, net and partially offset corresponding foreign exchange gains and losses on the balances and expenditures being hedged. The following table presents the balance sheet location and fair value of the Company’s derivatives not designated as hedging instruments: December 31, Contract Type Location of Asset (Liability) 2022 2021 Foreign currency contracts Prepaid expenses and other current assets $ 9.9 $ 5.7 Foreign currency contracts Accrued and other liabilities ( 6.5 ) ( 0.8 ) Total derivatives not designated as $ 3.4 $ 4.9 The pretax impact of the foreign currency forward contracts, both matured and outstanding, on the Consolidated Statements of Operations is as follows: Year Ended December 31, Location of Gain (Loss) 2022 2021 2020 Other expense, net $ ( 19.0 ) $ ( 2.6 ) $ 24.9 Derivative Instruments Designated As Cash Flow Hedges of Interest Rate Risk The Company has a hedging strategy to mitigate a portion of the exposure to changes in cash flows resulting from variable interest rates on the 2026 Term Loan. The total notional amount of the interest rate swap derivatives as of December 31, 2022 was $ 300 million with outstanding maturities up to fifteen months . There was no ineffectiveness on the instruments designated as cash flow hedges for the years ended December 31, 2022, 2021 or 2020. The following table presents the balance sheet location and fair value of the derivative instruments designated as cash flow hedges of interest rate risk: December 31, Contract Type Location of Asset (Liability) 2022 2021 Interest rate swap contracts Other noncurrent assets $ 8.6 $ — Interest rate swap contracts Accrued and other liabilities — ( 1.5 ) Interest rate swap contracts Other noncurrent liabilities — ( 10.3 ) Total derivatives designated as cash $ 8.6 $ ( 11.8 ) The impact of the effective portion of the interest rate swap contracts designated as cash flow hedging instruments on the Consolidated Statements of Comprehensive Loss is as follows: Year Ended December 31, Location of Gain (Loss) 2022 2021 2020 Other comprehensive income (loss), net of tax $ 16.0 $ 14.4 $ ( 10.2 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, debt instruments, interest rate swap contracts and foreign currency contracts. For cash and cash equivalents, trade receivables and trade payables, the carrying amounts of these financial instruments as of December 31, 2022 and December 31, 2021 were considered representative of their fair values due to their short terms to maturity. The fair values of the Company’s debt instruments, interest rate swap contracts and foreign currency contracts were based on indicative quotes. Fair value measurements using quoted prices in active markets for identical assets and liabilities fall within Level 1 of the fair value hierarchy, measurements using significant other observable inputs fall within Level 2, and measurements using significant unobservable inputs fall within Level 3. The carrying amounts, estimated fair values and valuation input levels of the Company’s debt instruments, interest rate derivatives and foreign currency contracts as of December 31, 2022 and 2021, are as follows: December 31, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value Valuation Assets: Foreign currency contracts $ 9.9 $ 9.9 $ 5.7 $ 5.7 Level 2 Interest rate swap contracts 8.6 8.6 — — Level 2 Liabilities: 7.125% senior notes due 2028 $ 700.0 $ 502.6 $ 700.0 $ 690.4 Level 2 5.00% senior notes due 2027 750.0 513.4 750.0 705.0 Level 2 8.25% senior notes due 2027 1,000.0 780.8 1,000.0 1,023.8 Level 2 6.00% senior notes due 2025 1,300.0 1,183.4 1,300.0 1,300.0 Level 2 4.75% senior secured notes due 2029 1,250.0 1,000.0 1,250.0 1,240.3 Level 2 6.00% senior secured notes due 2026 1,500.0 1,383.3 1,500.0 1,554.4 Level 2 Senior secured term loan due 2026 3,096.0 2,925.7 3,128.0 3,092.8 Level 2 Foreign currency contracts 6.5 6.5 0.8 0.8 Level 2 Interest rate swap contracts — — 11.8 11.8 Level 2 Non-Recurring Fair Value Measurements During the annual impairment test in the fourth quarter of 2022, a goodwill impairment charge of $ 1,119.6 million was recorded related to the ANS reporting unit in the ANS segment. The fair value of each reporting unit was determined using a discounted cash flow (DCF) model and a guideline public company approach, with 75 % of the value determined using the DCF model and 25 % of the value determined using the guideline public company approach. Under the DCF method, the fair value of a reporting unit is based on the present value of estimated future cash flows. Under the guideline public company method, the fair value is based upon market multiples of revenue and earnings derived from publicly-traded companies with similar operating and investment characteristics as the reporting unit. The inputs to both the DCF model and the guideline public company analysis are Level 3 valuation inputs. Changes in any of these inputs, among other factors, could negatively affect the fair value of one or more of the Company’s reporting units and result in a material impairment charge in the future. During the annual impairment test in the fourth quarter of 2021, the Company recorded a pretax goodwill impairment charge of $ 13.7 million in the Home segment related to the goodwill reallocated from the ANS reporting unit to the Home Networks reporting unit in the second quarter of 2021 as a result of a segment realignment. The fair value of each reporting unit was determined consistent with the approach used in the annual test in 2022 and used Level 3 valuation inputs. During the second quarter of 2020, the Company recorded a pretax goodwill impairment charge of $ 206.7 million related to the Home Networks reporting unit in the Home segment. The fair value of the reporting unit was determined as of May 31, 2020 based on the present value of estimated future cash flows using a DCF model. The inputs to the DCF model were Level 3 valuation inputs. These fair value estimates are based on pertinent information available to management as of the valuation date. Although management is not aware of any factors that would significantly affect these fair value estimates, such amounts have not been comprehensively revalued for purposes of these financial statements since those dates, and current estimates of fair value may differ significantly from the amounts presented. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | 10. RESTRUCTURING COSTS The Company incurs costs associated with restructuring initiatives intended to improve overall operating performance and profitability. The costs related to restructuring actions are generally cash-based and primarily consist of employee-related costs, which include severance and other one-time termination benefits. In addition to the employee-related costs, the Company records other costs associated with restructuring actions such as the gain or loss on the sale of facilities and impairment costs arising from unutilized real estate or equipment. The Company attempts to sell or lease this unutilized space but additional impairment charges may be incurred related to these or other excess assets. The Company’s net pretax restructuring activity included in restructuring costs, net on the Consolidated Statements of Operations, by segment, was as follows: Year Ended December 31, 2022 2021 2020 CCS $ 17.1 $ 62.0 $ 25.9 OWN 22.4 3.6 15.7 NICS 9.9 8.5 8.0 ANS 12.2 9.2 8.8 Home 1.3 8.6 30.0 Total $ 62.9 $ 91.9 $ 88.4 Restructuring liabilities were included in the Company’s Consolidated Balance Sheets as follows: December 31, 2022 2021 Accrued and other liabilities $ 58.9 $ 41.0 Other noncurrent liabilities 0.5 28.2 Total restructuring liabilities $ 59.4 $ 69.2 CommScope NEXT Restructuring Actions In the first quarter of 2021, the Company announced and began implementing a business transformation initiative called CommScope NEXT. This initiative is designed to drive shareholder value through three pillars: profitable growth, operational efficiency and portfolio optimization. The activity within the liability established for CommScope NEXT restructuring actions was as follows: Employee- Other Total Balance at December 31, 2020 $ — $ — $ — Additional expense, net 86.7 4.0 90.7 Cash paid ( 26.6 ) — ( 26.6 ) Foreign exchange and other non-cash items 0.5 ( 4.0 ) ( 3.5 ) Balance at December 31, 2021 60.6 — 60.6 Additional expense, net 50.7 8.6 59.3 Cash paid ( 48.9 ) ( 0.5 ) ( 49.4 ) Foreign exchange and other non-cash items ( 3.7 ) ( 8.1 ) ( 11.8 ) Balance at December 31, 2022 $ 58.7 $ — $ 58.7 CommScope NEXT actions to date have included employee costs related to the closure of an international manufacturing facility as well as headcount reductions in manufacturing, engineering, marketing, sales and administrative functions. Asset impairment charges related to real estate and property, plant and equipment that are affected by restructuring activities are included in the other category in the table above and in restructuring costs, net on the Consolidated Statements of Operations for the years ended December 31, 2022 and 2021. The Company has recognized restructuring charges of $ 150.0 million to date related to CommScope NEXT actions. The Company expects to make cash payments of $ 58.2 million in 2023 and $ 0.5 million in 2024 to settle CommScope NEXT restructuring actions. Additional restructuring actions related to CommScope NEXT are expected to be identified and the resulting charges and cash requirements could be material. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 11. EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company and certain of its subsidiaries have defined contribution retirement savings plans, the most significant of which is a 401(k) plan in the U.S. These plans allow employees meeting certain requirements to contribute a portion of their compensation on a pretax and/or after-tax basis in accordance with guidelines established by the plans and the Internal Revenue Service or other tax authorities. The Company matches a percentage of the employee contributions up to certain limits. During the years ended December 31, 2022, 2021 and 2020, the Company made contributions to defined contribution retirement savings plans of $ 51.2 million, $ 50.4 million and $ 56.6 million, respectively. The Company also maintains noncontributory and contributory deferred compensation plans. During the years ended December 31, 2022, 2021 and 2020, the Company recognized pretax costs of $ 2.7 million, $ 1.3 million and $ 2.6 million, respectively, related to these plans. The liability related to these plans was $ 22.5 million and $ 31.3 million as of December 31, 2022 and 2021, respectively. Pension Plans The Company sponsors defined benefit pension plans covering certain active and former domestic and foreign employees. Included in the defined benefit pension plans are both funded and unfunded plans. The following table summarizes information for the defined benefit pension plans: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation, beginning $ 12.5 $ 13.5 $ 275.5 $ 310.5 Service cost — — 5.7 6.8 Interest cost 0.3 0.3 3.7 3.1 Actuarial gain ( 2.6 ) ( 0.5 ) ( 68.7 ) ( 20.6 ) Benefits paid ( 0.8 ) ( 0.8 ) ( 4.5 ) ( 5.5 ) Settlements — — ( 6.2 ) ( 3.9 ) Curtailment — — — ( 4.0 ) Foreign exchange and other — — ( 22.2 ) ( 10.9 ) Benefit obligation, ending $ 9.4 $ 12.5 $ 183.3 $ 275.5 Change in plan assets: Fair value of plan assets, beginning $ — $ — $ 279.4 $ 279.1 Employer and plan participant contributions 0.8 0.8 6.4 7.5 Return on plan assets — — ( 69.9 ) 11.8 Benefits paid ( 0.8 ) ( 0.8 ) ( 4.5 ) ( 5.5 ) Settlements — — ( 6.2 ) ( 3.9 ) Foreign exchange and other — — ( 24.0 ) ( 9.6 ) Fair value of plan assets, ending $ — $ — $ 181.2 $ 279.4 Funded status, net liability (asset) $ 9.4 $ 12.5 $ 2.1 $ ( 3.9 ) The following table presents the balance sheet location of the Company's pension liabilities and assets: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Accrued and other liabilities $ ( 0.9 ) $ ( 0.7 ) $ ( 0.7 ) $ ( 0.4 ) Other noncurrent liabilities ( 8.5 ) ( 11.8 ) ( 15.3 ) ( 22.0 ) Other noncurrent assets — — 13.9 26.3 The accumulated benefit obligation for the Company’s U.S. defined benefit pension plans was $ 9.4 million and $ 12.5 million as of December 31, 2022 and 2021 , respectively, and the accumulated benefit obligation for the Company’s non-U.S. defined benefit pension plans was $ 159.9 million and $ 233.2 million as of December 31, 2022 and 2021, respectively. The following table summarizes information for the Company’s pension plans with an accumulated benefit obligation in excess of plan assets: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Projected benefit obligation $ 9.4 $ 12.5 $ 44.1 $ 48.8 Accumulated benefit obligation 9.4 12.5 41.3 45.9 Fair value of plan assets — — 28.4 27.4 The following table summarizes pretax amounts included in accumulated other comprehensive loss: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Unrecognized net actuarial gain (loss) $ 1.0 $ ( 1.7 ) $ ( 16.5 ) $ ( 13.6 ) Unrecognized prior service cost — — — ( 0.1 ) Total $ 1.0 $ ( 1.7 ) $ ( 16.5 ) $ ( 13.7 ) Actuarial gains and losses are amortized using a corridor approach. The corridor is equal to 10 % of the greater of the benefit obligation and the fair value of the assets. Gains and losses in excess of the corridor are generally amortized over the average remaining life of the plan participants. Pretax amounts for net periodic benefit cost and other amounts included in other comprehensive income (loss) for the defined benefit pension plans consisted of the following components: Year Ended December 31, U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Service cost $ — $ — $ — $ 5.7 $ 6.8 $ 4.3 Interest cost 0.3 0.3 0.3 3.7 3.1 4.0 Recognized actuarial loss 0.1 0.1 0.1 0.1 1.6 1.3 Expected return on plan assets — — — ( 4.9 ) ( 6.4 ) ( 7.0 ) Settlement loss — — — 1.6 0.3 1.5 Curtailment gain — — — — ( 2.5 ) — Net periodic benefit cost 0.4 0.4 0.4 6.2 2.9 4.1 Changes in plan assets and benefit obligations Change in unrecognized net actuarial loss (gain) ( 2.7 ) ( 0.6 ) 1.0 2.9 ( 28.0 ) 13.4 Change in unrecognized prior service cost — — — ( 0.1 ) ( 0.4 ) ( 0.2 ) Curtailment and settlements — — — — ( 1.8 ) ( 1.5 ) Total included in other comprehensive income (loss) ( 2.7 ) ( 0.6 ) 1.0 2.8 ( 30.2 ) 11.7 Total recognized in net periodic benefit cost and $ ( 2.3 ) $ ( 0.2 ) $ 1.4 $ 9.0 $ ( 27.3 ) $ 15.8 The Company reports the service cost component of net periodic benefit cost in the same line item as other compensation costs arising from the services rendered by the employee and records the other components of net periodic benefit cost in other expense, net. Assumptions Significant weighted average assumptions used in determining benefit obligations and net periodic benefit cost are as follows: U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Benefit obligations: Discount rate 4.99 % 2.55 % 2.07 % 4.37 % 1.47 % 1.02 % Rate of compensation increase — % — % — % 3.36 % 3.79 % 3.59 % Net periodic benefit cost: Discount rate 2.55 % 2.07 % 2.95 % 1.47 % 1.02 % 1.65 % Rate of return on plan assets — % — % — % 4.03 % 1.96 % 2.33 % Rate of compensation increase — % — % — % 3.79 % 3.59 % 3.74 % The Company considered the available yields on high-quality fixed-income investments with maturities corresponding to the Company’s expected benefit obligations to determine the discount rates at each measurement date. Plan Assets In developing the expected rate of return on plan assets, the Company considered the expected long-term rate of return on individual asset classes. Expected return on plan assets is based on the market value of the assets. The majority of the non-U.S. pension assets are managed by independent investment advisors. In general, the investment strategy is designed to accumulate a diversified portfolio among markets, asset classes or individual securities in order to reduce market risk and assure that the pension assets are available to pay benefits as they come due. Mutual funds classified as Level 1 are valued at net asset value, which is based on the fair value of the funds’ underlying securities. Certain mutual funds are classified as Level 2 because a portion of the funds’ underlying assets are valued using significant other observable inputs. Other assets are primarily composed of fixed income investments (including insurance and real estate products) and are valued based on the investment’s stated rate of return, which approximates market interest rates. The Company had no U.S. defined benefit pension plan assets as of December 31, 2022 or 2021. The estimated fair values and the valuation input levels of the Company’s non-U.S. defined benefit pension plan assets are as follows: December 31, 2022 Non-U.S. Plans Level 1 Level 2 Mutual funds: International equity $ 19.7 $ 7.7 International debt 36.8 76.0 Absolute return — 3.8 Other 7.7 29.5 Total $ 64.2 $ 117.0 December 31, 2021 Non-U.S. Plans Level 1 Level 2 Mutual funds: International equity $ 25.6 $ 32.2 International debt 47.4 126.5 Absolute return — 9.5 Other 9.6 28.6 Total $ 82.6 $ 196.8 Expected Cash Flows The Company expects to contribute $ 0.9 million to U.S. defined benefit pension plans and $ 4.2 million to non-U.S. defined benefit pension plans during 2023. The following table summarizes projected benefit payments from pension plans through 2032, including benefits attributable to estimated future service (in millions): U.S. Plans Non-U.S. Plans 2023 $ 0.9 $ 14.8 2024 0.9 10.0 2025 0.9 10.3 2026 0.9 13.8 2027 0.8 11.6 2028-2032 3.7 57.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES L oss before income taxes includes the results from domestic and international operations as follows: Year Ended December 31, 2022 2021 2020 U.S. companies $ ( 1,359.2 ) $ ( 541.0 ) $ ( 689.7 ) Non-U.S. companies 59.2 6.5 35.2 Loss before income taxes $ ( 1,300.0 ) $ ( 534.5 ) $ ( 654.5 ) The components of income tax benefit were as follows: Year Ended December 31, 2022 2021 2020 Current: Federal $ 42.0 $ ( 19.1 ) $ ( 0.1 ) Foreign 45.5 86.7 67.3 State 17.8 8.0 6.4 Current income tax expense $ 105.3 $ 75.6 $ 73.6 Deferred: Federal $ ( 90.7 ) $ ( 123.9 ) $ ( 131.0 ) Foreign ( 17.1 ) ( 14.0 ) ( 7.1 ) State ( 10.6 ) ( 9.6 ) ( 16.6 ) Deferred income tax benefit ( 118.4 ) ( 147.5 ) ( 154.7 ) Total income tax benefit $ ( 13.1 ) $ ( 71.9 ) $ ( 81.1 ) The reconciliation of income taxes calculated at the statutory U.S. federal income tax rate to the Company’s benefit for income taxes was as follows: Year Ended December 31, 2022 2021 2020 Benefit for income taxes at federal statutory rate $ ( 273.0 ) $ ( 112.2 ) $ ( 137.4 ) State income taxes, net of federal tax effect ( 8.4 ) ( 20.9 ) ( 21.6 ) Other permanent items 12.5 7.0 11.0 Equity-based compensation ( 5.6 ) 7.0 16.1 Other changes in tax laws and tax rulings 4.7 37.9 ( 38.2 ) Goodwill related items 232.0 2.8 42.8 Base erosion and anti-abuse tax — 10.2 — Foreign-derived intangible income deduction ( 7.4 ) ( 7.5 ) ( 3.8 ) Federal tax credits ( 26.4 ) ( 23.2 ) ( 23.4 ) Change in unrecognized tax benefits ( 7.1 ) ( 13.2 ) ( 2.6 ) Withholding taxes and Subpart F income, net of foreign tax credits 48.8 19.7 23.6 Foreign earnings taxed at other than federal rate 6.6 5.6 20.9 Tax provision adjustments and revisions to prior years' returns ( 3.2 ) ( 5.8 ) 7.1 Change in valuation allowances 13.4 20.7 24.4 Total benefit for income taxes $ ( 13.1 ) $ ( 71.9 ) $ ( 81.1 ) The components of deferred income tax assets and liabilities and the classification of deferred tax balances on the balance sheet were as follows: December 31, 2022 2021 Deferred tax assets: Accounts receivable, inventory and warranty reserves $ 138.3 $ 109.4 Employee benefits 60.4 50.9 Foreign net operating loss and tax credit carryforwards 573.3 649.0 Federal net operating loss and tax credit carryforwards 22.0 115.2 State net operating loss and tax credit carryforwards 103.6 108.9 Unrecognized tax benefits 30.8 43.0 Interest limitation 75.4 51.7 Capitalized research and development costs 471.6 391.6 Other 92.6 85.9 Total deferred tax assets 1,568.0 1,605.6 Valuation allowance ( 643.1 ) ( 706.7 ) Total deferred tax assets, net of valuation allowance 924.9 898.9 Deferred tax liabilities: Intangible assets $ ( 542.7 ) $ ( 629.7 ) Property, plant and equipment ( 15.3 ) ( 19.1 ) Undistributed foreign earnings ( 20.6 ) ( 17.6 ) Other ( 13.0 ) ( 13.6 ) Total deferred tax liabilities ( 591.6 ) ( 680.0 ) Net deferred tax asset $ 333.3 $ 218.9 Deferred taxes recognized on the balance sheet: Noncurrent deferred tax asset (included with other noncurrent assets) $ 506.7 $ 427.1 Noncurrent deferred tax liability ( 173.4 ) ( 208.2 ) Net deferred tax asset $ 333.3 $ 218.9 The deferred tax asset for foreign net operating loss and tax credit carryforwards as of December 31, 2022 includes foreign net operating loss carryforwards (net of federal tax effects) of $ 560.3 million, which begin to expire in 2023 , and foreign tax credit carryforwards (net of federal tax effects) of $ 13.0 million, which begin to expire in 2023 . Certain of these foreign net operating loss carryforwards are subject to local restrictions limiting their utilization. Valuation allowances of $ 542.8 million have been established related to these foreign deferred tax assets. The deferred tax asset for federal net operating loss and tax credit carryforwards as of December 31, 2022 relates to $ 4.9 million of net operating loss carryforwards, which begin to expire in 2030 and $ 17.1 million of U.S. foreign tax credit carryforwards, which begin to expire in 2028 . A valuation allowance of $ 17.1 million has been established against these deferred tax assets. The deferred tax asset for state net operating loss and tax credit carryforwards as of December 31, 2022 includes state net operating loss carryforwards (net of federal tax impact) of $ 37.3 million, which begin to expire in 2023 , and state tax credit carryforwards (net of federal tax impact) of $ 66.3 million, which begin to expire in 2023 . A valuation allowance of $ 79.8 million has been established against these and other state income tax related deferred tax assets. In addition to the valuation allowances detailed above, the Company has also established a valuation allowance of $ 3.4 million against other deferred tax assets. Under current U.S. tax regulations, in general, repatriation of foreign earnings to the U.S. can be completed with no incremental U.S. tax. However, repatriation of foreign earnings could subject the Company to U.S. state and non-U.S. jurisdictional taxes (including withholding taxes) on distributions. As of December 31, 2022 , the Company has a deferred tax liability of $ 20.6 million for the estimated foreign and state tax costs associated with the expected repatriation of the Company’s undistributed foreign earnings. The unrecorded deferred tax liability for foreign and state tax costs associated with earnings considered permanently reinvested is not material as of December 31, 2022. The following table reflects a reconciliation of the beginning and end of period amounts of gross unrecognized tax benefits, excluding interest and penalties: Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 176.6 $ 190.5 $ 191.9 Increase related to prior periods 1.1 0.7 2.5 Decrease related to prior periods ( 23.3 ) ( 0.3 ) ( 4.5 ) Increase related to current periods 5.1 5.9 5.0 Decrease related to settlements with taxing authorities ( 13.4 ) ( 7.5 ) ( 0.9 ) Decrease related to lapse in statutes of limitations ( 0.6 ) ( 12.7 ) ( 2.6 ) Decrease related to the ARRIS acquisition — — ( 0.9 ) Balance at end of period $ 145.5 $ 176.6 $ 190.5 The Company’s liability for unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods was $ 115.6 million as of December 31, 2022. The Company operates in numerous jurisdictions worldwide and is subject to routine tax audits on a regular basis. The determination of the Company’s unrecognized tax benefits involves significant management judgment regarding interpretation of relevant facts and tax laws in each of these jurisdictions. Unrecognized tax benefits are reviewed and evaluated on an ongoing basis and may be adjusted for changing facts and circumstances including the lapse of applicable statutes of limitation and closure of tax examinations. Although the timing and outcome of such events are difficult to predict, the Company estimates that the balance of unrecognized tax benefits, excluding the impact of accrued interest and penalties, may be reduced by up to $ 7.0 million within the next twelve months. The Company provides for interest and penalties related to unrecognized tax benefits as income tax expense. The Company accrued $ 9.4 million for interest and penalties as of both December 31, 2022 and 2021. During the years ended December 31, 2022, 2021 and 2020 the net expense (benefit) for interest and penalties recognized through income tax benefit was $ 0.1 million, $( 0.1 ) million and $( 1.3 ) million, respectively. The Company files federal, state and local tax returns with statutes of limitation generally ranging from 3 to 4 years. The Company is currently undergoing a U.S. federal income tax audit for the 2019 tax year and is generally no longer subject to state and local tax examinations for years prior to 2019. Tax returns filed by the Company’s significant foreign subsidiaries are generally subject to statutes of limitation of 3 to 7 years and are generally no longer subject to examination for years prior to 2017. In many jurisdictions, tax authorities retain the ability to review prior years’ tax returns and to adjust any net operating loss or tax credit carryforwards from these years that are available to be utilized in subsequent periods. During 2022, the Company recognized $ 9.7 million (net of payments) related to the lapse of applicable statutes of limitations and the conclusion of various domestic and foreign examinations. The following table presents income tax expense (benefit) related to amounts presented in other comprehensive income (loss): Year Ended December 31, 2022 2021 2020 Foreign currency translation $ 1.2 $ 1.2 $ ( 5.0 ) Defined benefit plans 0.8 6.6 ( 3.5 ) Total $ 2.0 $ 7.8 $ ( 8.5 ) |
Series A Convertible Preferred
Series A Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Series A Convertible Preferred Stock | 13. SERIES A CONVERTIBLE PREFERRED STOCK On April 4, 2019, the Company issued and sold 1,000,000 shares of the Convertible Preferred Stock for $ 1.0 billion, or $ 1,000 per share, pursuant to an Investment Agreement between the Company and The Carlyle Group (Carlyle), dated November 8, 2018 (the Investment Agreement). As of December 31, 2022 , the Company had authorized 1,200,000 shares of Series A Convertible Preferred Stock. Dividend Rights The Convertible Preferred Stock ranks senior to the shares of the Company’s common stock, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. The Convertible Preferred Stock has a liquidation preference of $ 1,000 per share. Holders of the Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5 % per year, payable quarterly in arrears. If CommScope does not declare and pay a dividend, the dividend rate will increase by 2.5 % to 8.0 % per year (and that rate will increase by an additional 0.50 % every three months until such unpaid dividend is declared and paid, subject to a cap of 11.0 % per year) until all accrued but unpaid dividends have been paid in full. Dividends can be paid in cash, in-kind through the issuance of additional shares of Convertible Preferred Stock or any combination of the two, at the Company’s option. During the years ended December 31, 2022, 2021 and 2020 , the Company paid cash dividends of $ 14.9 million, $ 43.0 million and $ 14.3 million, respectively, and dividends in-kind of $ 44.1 million, $ 14.3 million and $ 41.8 million, respectively, which were recorded as additional Convertible Preferred Stock on the Consolidated Balance Sheets. Conversion Features The Convertible Preferred Stock is convertible at the option of the holders at any time into shares of CommScope common stock at an initial conversion rate of 36.3636 shares of common stock per share of the Convertible Preferred Stock (equivalent to $ 27.50 per common share). The conversion rate is subject to customary anti-dilution and other adjustments. At any time after the third anniversary of the issuance of the Convertible Preferred Stock, if the volume weighted average price of CommScope’s common stock exceeds the conversion price of $ 49.50 , as may be adjusted pursuant to the Certificate of Designations, for at least thirty trading days in any period of forty-five consecutive trading days (including the final five trading days of any such forty-five-trading day period) all of the Convertible Preferred Stock may be converted at the election of CommScope into the relevant number of shares of CommScope common stock. Redemption Rights On any date during the three months following the eight year and six-month anniversary of the Investment Agreement closing date and the three months following each anniversary thereafter, holders of the Convertible Preferred Stock will have the right to require CommScope to redeem all or any portion of the Convertible Preferred Stock at 100 % of the liquidation preference thereof plus all accrued and unpaid dividends. The redemption price is payable, at the Company’s option, in cash or a combination of cash and common stock, subject to certain restrictions. Upon certain change of control events involving CommScope, CommScope has the right, subject to the holder’s right to convert prior to such redemption, to redeem all of the Convertible Preferred Stock for the greater of (i) an amount in cash equal to the sum of the liquidation preference of the Convertible Preferred Stock, all accrued but unpaid dividends and, if the applicable redemption date is prior to the fifth anniversary of the first dividend payment date, the present value, discounted at a rate of 10 %, of any remaining scheduled dividends through the five year anniversary of the first dividend payment date, assuming CommScope chose to pay such dividends in cash and (ii) the consideration the holders would have received if they had converted their shares of the Convertible Preferred Stock into CommScope common stock immediately prior to the change of control event. To the extent that CommScope does not exercise the redemption right described above, following the effective date of any such change of control event, the holders of the Convertible Preferred Stock can require CommScope to repurchase the Convertible Preferred Stock at the greater of (i) an amount in cash equal to 100 % of the liquidation preference thereof plus all accrued but unpaid dividends and (ii) the consideration the holders would have received if they had converted their shares of the Convertible Preferred Stock into CommScope common stock immediately prior to the change of control event. Voting Rights Holders of the Convertible Preferred Stock are entitled to vote with the holders of the Company’s common stock on an as-converted basis. Holders of the Convertible Preferred Stock are entitled to a separate class vote with respect to, among other things, amendments to CommScope’s organizational documents that have an adverse effect on the Convertible Preferred Stock, issuances by CommScope of securities that are senior to, or equal in priority with, the Convertible Preferred Stock and issuances of shares of the Convertible Preferred Stock after the closing date of the Acquisition, other than shares issued as dividends with respect to shares of the Convertible Preferred Stock. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 14. STOCKHOLDERS’ EQUITY Equity-Based Compensation Plans In 2019, the Company’s stockholders approved the 2019 Long-Term Incentive Plan authorizing 8.0 million shares for issuance, plus additional shares underlying awards outstanding under the predecessor plans. Subsequently, in each of the years 2020, 2021 and 2022, the Company’s stockholders approved the Amended and Restated 2019 Long-Term Incentive Plan (the 2019 Plan) and authorized an additional aggregate 15.8 million shares for issuance. All future equity awards will be made from the 2019 Plan. Awards under the 2019 Plan may include stock options, stock appreciation rights, restricted stock, stock units (including restricted stock units (RSUs) and deferred stock units), performance awards (represents any of the awards already listed with a performance-vesting component), other stock-based awards and cash-based awards. As of December 31, 2022, there were 3.9 million shares available for future grants under the 2019 Plan. As of December 31, 2022 , $ 89.0 million of total unrecognized compensation expense related to unvested stock options, RSUs and performance share units (PSUs) is expected to be recognized over a remaining weighted average period of 1.9 years. There were no significant capitalized equity-based compensation costs at December 31, 2022. The following table shows a summary of the equity-based compensation expense included in the Consolidated Statements of Operations: Year Ended December 31, 2022 2021 2020 Selling, general and administrative $ 34.6 $ 40.7 $ 63.0 Research and development 18.3 25.8 33.5 Cost of sales 8.2 13.1 18.5 Total equity-based compensation expense $ 61.1 $ 79.6 $ 115.0 The Company believes the valuation techniques and the approaches utilized to develop the underlying assumptions are appropriate in estimating the fair values of its equity-based compensation. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards. Subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. Stock Options Stock options are awards that allow the recipient to purchase shares of the Company’s common stock at a fixed price. Stock options are granted at an exercise price equal to the Company’s stock price at the date of grant. The Company uses the Black-Scholes model to estimate the fair value of stock options at the date of grant. These awards generally vest over five years following the grant date and have a contractual term of ten years . There were 2.3 million options outstanding as of December 31, 2022 with no intrinsic value and the majority were vested. There were no stock options granted during the years ended December 31, 2022, 2021 or 2020. The intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $ 0.1 million, $ 5.4 million and $ 7.1 million, respectively. Restricted Stock Units RSUs entitle the holder to shares of common stock after a vesting period of generally three years . The fair value of the awards is determined on the grant date based on the Company’s stock price. The following table summarizes the RSU activity (in millions, except per share data): Restricted Weighted Non-vested share units at December 31, 2021 10.4 $ 15.04 Granted 7.3 $ 8.05 Vested and shares issued ( 5.1 ) $ 14.99 Forfeited ( 1.4 ) $ 14.02 Non-vested share units at December 31, 2022 11.2 $ 10.66 The weighted average grant date fair value per unit of these awards granted during the years ended December 31, 2022, 2021 and 2020 was $ 8.05 , $ 20.19 and $ 10.49 , respectively. The total fair value of RSUs that vested during the years ended December 31, 2022, 2021 and 2020 was $ 76.5 million, $ 82.4 million and $ 76.0 million, respectively. Performance Share Units PSUs are stock awards in which the number of shares ultimately received by the employee depends on achievement towards a performance measure. Certain of CommScope’s PSUs have an internal performance measure and the awards vest at the end of three years. The number of shares issued under these awards can vary between 0 % and 300 % of the number of PSUs granted. The fair value of these awards is determined on the date of grant based on the Company's stock price. CommScope also has PSUs with a market condition performance measure based on stock price milestones over a three-year period. The number of shares issued under these awards can vary between 0 % to 100 % of the number of PSUs granted. In addition, the Company has PSUs with a market condition based on the Company's total stockholder return (TSR) ranking relative to the S&P 500 TSR for a three-year period. The number of shares issued under these awards can vary between 0 % to 200 % of the number of PSUs granted. The Company uses a Monte Carlo simulation model to estimate the fair value of PSUs with a market condition performance measure at the date of grant. Key assumptions used in the model include the risk-free interest rate, which reflects the yield on zero-coupon U.S. treasury securities, and stock price volatility, which is derived based on the historical volatility of the Company's stock. The following table presents the weighted average assumptions used to estimate the fair value of these awards granted: Year Ended December 31, 2022 2021 2020 Risk-free interest rate 1.7 % 0.4 % 0.2 % Expected volatility 61.2 % 56.0 % 51.7 % Weighted average fair value at grant date $ 11.21 $ 11.21 $ 4.03 The following table summarizes the PSU activity (in millions, except per share data): Performance Weighted Non-vested share units at December 31, 2021 2.1 $ 7.69 Granted 1.4 $ 9.51 Vested and shares issued ( 0.4 ) $ 8.13 Forfeited ( 0.2 ) $ 15.91 Non-vested share units at December 31, 2022 2.9 $ 8.14 The weighted average grant date fair value per unit of these awards granted during the years ended December 31, 2022, 2021 and 2020 was $ 9.51 , $ 14.47 and $ 4.63 , respectively. The total fair value of PSUs that vested during the years ended December 31, 2022, 2021 and 2020 was $ 3.5 million, $ 1.0 million, and $ 18.4 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Year Ended December 31, 2022 2021 2020 Product warranty accrual, beginning of period $ 66.8 $ 59.5 $ 61.0 Provision for warranty claims 24.7 38.5 30.9 Warranty claims paid ( 36.1 ) ( 30.8 ) ( 32.4 ) Foreign exchange ( 0.4 ) ( 0.4 ) — Product warranty accrual, end of period $ 55.0 $ 66.8 $ 59.5 Third-Party Guarantees The Company was contingently liable under open standby letters of credit issued by its banks to support performance obligations of a third-party contractor that totaled $ 44.0 million as of December 31, 2022. These amounts represent an estimate of the maximum amounts the Company would expect to incur upon the contractual non-performance of the third-party contractor, but the Company also has cross-indemnities in place that may enable it to recover amounts in the event of non-performance by the third-party contractor. The Company believes the likelihood of having to perform under these guarantees is remote. There were no material amounts recorded in the consolidated financial statements related to third-party guarantee agreements as of and for the years ended December 31, 2022 or 2021. As of December 31, 2022, these instruments reduced the available borrowings under the Revolving Credit Facility. Legal Proceedings The Company is a party to certain intellectual property claims and also periodically receives notices asserting that its products infringe on another party’s patents and other intellectual property rights. These claims and assertions, whether against the Company directly or against its customers, could require the Company to pay damages, royalties, stop offering the relevant products and/or cease other activities. The Company may also be called upon to indemnify certain customers for costs related to products sold to such customers. The outcome of these claims and notices is uncertain and a reasonable estimate of the loss from unfavorable outcomes in certain of these matters either cannot be determined or is estimated at the minimum amount of a range of estimates. The actual loss, through settlement or trial, could be material and may vary significantly from the Company's estimates. From time to time, the Company may also be involved as a plaintiff involving intellectual property claims. Gain contingencies, if any, are recognized when they are realized. As of December 31, 2022 and 2021, the Company had liabilities of $ 37.1 million and $ 24.6 million, respectively, recorded in accrued and other liabilities and noncurrent liabilities on the Consolidated Balance Sheets related to certain intellectual property assertions that have been settled or are in the process of settlement. For the years ended December 31, 2022, 2021 and 2020, the Company recorded charges to cost of sales in the Consolidated Statements of Operations of $ 31.0 million, $ 48.6 million and $ 7.8 million, respectively, related to these intellectual property assertions. The current year charges are reflected in the results of the Home, NICS and CCS segments. The Company paid $ 21.0 million, $ 56.1 million and $ 109.0 million during the years ended December 31, 2022, 2021 and 2020, respectively, to settle intellectual property assertions. During the year ended December 31, 2021, the Company received $ 17.1 million in the settlement of a warranty indemnification matter that was assumed in the acquisition of ARRIS in 2019. The recovery was recorded as a reduction of cost of sales in the Consolidated Statements of Operations and is reflected in the results of the ANS segment. The Company is either a plaintiff or a defendant in certain other pending legal matters in the normal course of business. Management believes none of these other pending legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. The Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. |
Industry Segments, Major Custom
Industry Segments, Major Customers, Related Party Transactions and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Industry Segments, Major Customers, Related Party Transactions and Geographic Information | 16. INDUSTRY SEGMENTS, MAJOR CUSTOMERS, RELATED PARTY TRANSACTIONS AND GEOGRAPHIC INFORMATION Segment Information As of January 1, 2022, the Company reorganized its internal management and reporting structure to align its portfolio of products and solutions more closely with the markets it serves and provides better performance comparability with its competitive peer set. The reorganization changed the information regularly reviewed by the Company's chief operating decision maker for purposes of allocating resources and assessing performance. As a result, the Company is now reporting financial performance based on the following operating segments: CCS, OWN, NICS, ANS and Home. All prior period amounts below have been recast to reflect these operating segment changes. The Connectivity and Cable Solutions (CCS) segment provides fiber optic and copper connectivity and cable solutions for use in telecommunications, cable television, residential broadband networks, data centers and business enterprises. The CCS portfolio includes network solutions for indoor and outdoor network applications. Indoor network solutions include optical fiber and twisted pair structured cable solutions, intelligent infrastructure management hardware and software and network rack and cabinet enclosures. Outdoor network solutions are used in both local-area and wide-area networks and “last mile” fiber-to-the-home installations, including deployments of fiber-to-the-node, fiber-to-the-premises and fiber-to-the-distribution point to homes, businesses and cell sites. The Outdoor Wireless Networks (OWN) segment focuses on the macro and metro cell markets. The segment includes base station antennas, radio frequency (RF) filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel, accessories and the wireless spectrum management business, Comsearch. The Networking, Intelligent Cellular and Security Solutions (NICS) segment provides wireless networks for enterprises and service providers. Product offerings include indoor and outdoor Wi-Fi and long-term evolution (LTE) access points, access and aggregation switches; an Internet of Things suite, on-premises and cloud-based control and management systems; and software and software-as-a-service applications addressing security, location, reporting and analytics. The Access Network Solutions (ANS) segment’s product solutions include cable modem termination systems, video infrastructure, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network. The Home Networks (Home) segment includes subscriber-based solutions that support broadband and video applications. The broadband offerings in the Home segment include devices that provide residential connectivity to a service provider’s network, such as digital subscriber line and cable modems and telephony and data gateways which incorporate routing and Wi-Fi functionality. Video offerings include set top boxes that support cable, satellite and IP television content delivery and include products such as digital video recorders, high definition set top boxes and hybrid set top devices. The following table provides summary financial information by reportable segment: December 31, 2022 2021 Identifiable segment-related assets: CCS $ 4,263.8 $ 4,377.2 OWN 1,166.8 1,386.5 NICS 1,338.1 1,397.0 ANS 2,632.6 3,831.9 Home 1,379.3 1,479.5 Total identifiable segment-related assets 10,780.6 12,472.1 Reconciliation to total assets: Cash and cash equivalents 398.1 360.3 Deferred income tax assets 506.7 427.1 Total assets $ 11,685.4 $ 13,259.5 The Company’s measurement of segment performance is adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization). The Company defines adjusted EBITDA as operating income (loss), adjusted to exclude depreciation, amortization of intangible assets, restructuring costs, asset impairments, equity-based compensation, transaction, transformation and integration costs and other items that the Company believes are useful to exclude in the evaluation of operating performance from period to period because these items are not representative of the Company’s core business. The following table provides net sales, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment: Year Ended December 31, 2022 2021 2020 Net sales: CCS $ 3,789.6 $ 3,053.8 $ 2,551.8 OWN 1,467.9 1,417.1 1,250.4 NICS 939.7 861.9 847.1 ANS 1,327.5 1,404.6 1,379.1 Home 1,703.4 1,849.3 2,407.5 Consolidated net sales $ 9,228.1 $ 8,586.7 $ 8,435.9 Segment adjusted EBITDA: CCS $ 643.6 $ 448.9 $ 447.5 OWN 269.7 266.8 277.3 NICS 51.9 ( 15.3 ) 12.8 ANS 285.2 391.1 346.3 Home 26.3 25.5 131.3 Total segment adjusted EBITDA 1,276.7 1,117.0 1,215.2 Amortization of intangible assets ( 543.0 ) ( 613.0 ) ( 630.5 ) Restructuring costs, net ( 62.9 ) ( 91.9 ) ( 88.4 ) Equity-based compensation ( 61.1 ) ( 79.6 ) ( 115.0 ) Asset impairments ( 1,119.6 ) ( 13.7 ) ( 206.7 ) Transaction, transformation and integration costs ( 38.2 ) ( 90.3 ) ( 24.9 ) Acquisition accounting adjustments ( 7.3 ) ( 11.5 ) ( 20.6 ) Patent claims and litigation settlements ( 28.5 ) ( 31.7 ) ( 16.3 ) Executive severance — — ( 6.3 ) Reserve of Russian accounts receivable ( 2.7 ) — — Depreciation ( 127.2 ) ( 136.7 ) ( 158.3 ) Consolidated operating income (loss) $ ( 713.8 ) $ 48.6 $ ( 51.8 ) Depreciation expense: CCS $ 58.8 $ 53.6 $ 53.9 OWN 14.3 15.4 17.2 NICS 15.0 19.2 21.0 ANS 22.5 25.8 31.1 Home 16.6 22.7 35.1 Consolidated depreciation expense $ 127.2 $ 136.7 $ 158.3 Additions to property, plant and equipment: CCS $ 64.6 $ 81.5 $ 61.8 OWN 9.9 11.0 12.8 NICS 7.0 13.4 10.1 ANS 11.1 14.6 10.3 Home 8.7 10.9 26.2 Consolidated additions to property, plant and equipment $ 101.3 $ 131.4 $ 121.2 Customer and Supplier Information No direct customer accounted for 10 % or more of the Company's total net sales during the years ended December 31, 2022 or 2021. Net sales to Comcast Corporation and affiliates (Comcast) accounted for 11 % of the Company’s net sales during the year ended December 31, 2020. Net sales to Comcast are mostly derived from the Home, ANS and CCS segments. Other than Comcast, no direct customer accounted for 10 % or more of the Company’s total net sales during the year ended December 31, 2020. Accounts receivable from Charter Communications, Inc. (Charter) represented approximately 12 % of accounts receivable as of December 31, 2022. Other than Charter, no direct customer accounted for 10 % or more of the Company's accounts receivable as of December 31, 2022. No direct customers accounted for 10 % or more of the Company’s accounts receivable as of December 31, 2021. The Company relies on sole suppliers or a limited group of suppliers for certain key components, subassemblies and modules and a limited group of contract manufacturers to manufacture a significant portion of its products. Any disruption or termination of these arrangements could have a material adverse impact on the Company’s results of operations. Related Party Transactions See Note 13 for a discussion of the Convertible Preferred Stock issued to Carlyle to finance the ARRIS acquisition. Other than transactions related to the Convertible Preferred Stock, there were no material related party transactions for the years ended December 31, 2022, 2021 or 2020. Geographic Information Sales to customers located outside of the U.S. comprised 38 % , 42 % and 39 % of total net sales during the years ended December 31, 2022, 2021 and 2020 , respectively. Sales by geographic region, based on the destination of product shipments or service provided, were as follows: Year Ended December 31, 2022 CCS OWN NICS ANS Home Total Geographic Region: United States (U.S.) $ 2,513.6 $ 1,062.6 $ 539.5 $ 902.4 $ 732.4 $ 5,750.5 Europe, Middle East and Africa (EMEA) 571.9 218.0 250.7 124.2 430.2 1,595.0 Asia Pacific (APAC) 431.4 120.8 114.1 79.2 79.0 824.5 Caribbean and Latin America (CALA) 179.3 32.8 20.3 164.3 199.0 595.7 Canada 93.4 33.7 15.1 57.4 262.8 462.4 Consolidated net sales $ 3,789.6 $ 1,467.9 $ 939.7 $ 1,327.5 $ 1,703.4 $ 9,228.1 Year Ended December 31, 2021 CCS OWN NICS ANS Home Total Geographic Region: United States $ 1,823.6 $ 894.3 $ 490.4 $ 824.5 $ 927.7 $ 4,960.5 Europe, Middle East and Africa 548.0 272.4 238.2 146.7 415.3 1,620.6 Asia Pacific 439.8 150.7 102.5 131.4 114.2 938.6 Caribbean and Latin America 169.1 44.6 18.3 246.8 220.2 699.0 Canada 73.3 55.1 12.5 55.2 171.9 368.0 Consolidated net sales $ 3,053.8 $ 1,417.1 $ 861.9 $ 1,404.6 $ 1,849.3 $ 8,586.7 Long-lived assets, excluding intangible assets, consist substantially of property, plant and equipment and right of use assets. The Company’s long-lived assets, excluding intangible assets, located in the U.S., EMEA, APAC and CALA regions represented the following percentages of such long-lived assets: 60 %, 14 %, 18 % and 8 %, respectively, as of December 31, 2022 and 63 %, 13 %, 18 % and 6 %, respectively, as of December 31, 2021 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying consolidated financial statements include CommScope Holding Company, Inc., along with its direct and indirect subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates in the Preparation of the Financial Statements | Use of Estimates in the Preparation of the Financial Statements The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and their underlying assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other objective sources. The Company bases its estimates on historical experience and on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Significant accounting estimates reflected in the Company’s financial statements include the allowance for doubtful accounts; reserves for sales returns, discounts, allowances, rebates and distributor price protection programs; inventory excess and obsolescence reserves; product warranty reserves and other contingent liabilities; tax valuation allowances; liabilities for unrecognized tax benefits; impairment reviews for investments, property, plant and equipment, goodwill and other intangible assets; and pension and other postretirement benefit costs and liabilities. Although these estimates are based on management’s knowledge of and experience with past and current events and on management’s assumptions about future events, it is at least reasonably possible that they may ultimately differ materially from actual results. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent deposits in banks and cash invested temporarily in various instruments that are highly liquid and have a maturity of three months or less at the time of purchase. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable and contract assets for unbilled receivables are stated at the amount owed by the customer, net of allowances for estimated doubtful accounts, discounts, returns and rebates. The Company measures the allowance for doubtful accounts using an expected credit loss model, which uses a lifetime expected loss allowance for all trade accounts receivable and contract assets. To measure the expected credit losses, trade accounts receivable and contract assets are grouped based on shared credit risk characteristics and the days past due based on the contractual terms of the receivable. Contract assets relate to unbilled work in progress and have substantially the same risk characteristics as trade accounts receivable for the same types of contracts. Therefore, the Company has concluded that the expected loss rates for trade accounts receivables are a reasonable approximation of the loss rates for the contract assets. In calculating an allowance for doubtful accounts, the Company uses its historical experience, external indicators and forward-looking information to calculate expected credit losses using an aging method. The Company assesses impairment of trade accounts receivable on a collective basis as they possess shared credit risk characteristics which have been grouped based on the days past due. The expected loss rates are based on the payment profiles of sales over the preceding thirty-six months and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle their trade accounts receivable. Accounts are written off against the allowance account when they are determined to be no longer collectible. The Company sells certain of its accounts receivable under a customer-sponsored supplier financing agreement. Under this agreement, the Company is able to sell certain accounts receivable to a bank at a discount. The Company sold approximately $ 339 million and $ 45 million of trade accounts receivable under this program during the years ended December 31, 2022 and 2021, respectively, and the cost of factoring such receivables was not material. The Company derecognizes the accounts receivable on the Consolidated Balance Sheet once sold to the bank, as it retains no interest in and has no servicing responsibilities for them once they have been sold. The cash received from the bank is classified within the operating activities section in the Consolidated Statements of Cash Flows. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Inventory cost is determined on a first-in, first-out (FIFO) basis. Costs such as idle facility expense, excessive scrap and re-handling costs are expensed as incurred. The Company maintains reserves to reduce the value of inventory to the lower of cost or net realizable value, including reserves for excess and obsolete inventory. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities CommScope is exposed to risks resulting from adverse fluctuations in commodity prices, interest rates and foreign currency exchange rates. CommScope’s risk management strategy includes the use of derivative financial instruments whenever management determines their use to be reasonable and practical. This strategy does not permit the use of derivative financial instruments for trading or speculation. The Company periodically uses forward contracts to hedge a portion of its balance sheet foreign exchange re-measurement risk and to hedge certain planned foreign currency expenditures. Unrealized gains and losses resulting from these contracts are recognized in other expense, net and partially offset corresponding foreign exchange gains and losses on the balances and expenditures being hedged. These instruments are not designated as hedges for hedge accounting purposes and are marked to market each period through earnings. The Company also has a hedging strategy to mitigate a portion of the exposure to changes in cash flows resulting from variable interest rates on the senior secured term loan due 2026 (2026 Term Loan), which are based on the one-month LIBOR benchmark rate. Hedge effectiveness is assessed each quarter, and for hedges that meet the effectiveness requirements, changes in fair value are recorded as a component of other comprehensive income (loss), net of tax, and are reclassified to interest expense as interest payments are made on the Company’s variable rate debt. The Company has elected and documented the use of the normal purchases and sales exception for normal purchase and sales contracts that meet the definition of a derivative financial instrument. See Note 8 for further disclosure related to the derivative instruments and hedging activities. |
Leases | Leases The Company determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are reported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities and other noncurrent liabilities on the Consolidated Balance Sheets. For the periods presented, CommScope does not have any financing type leases. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The majority of the Company’s leases do not provide an implicit rate; therefore, the Company uses the incremental borrowing rates applicable to the economic environment and the duration of the lease, based on the information available at commencement date, in determining the present value of future payments. The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial direct costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company remeasures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for as a separate contract. The lease liability is remeasured when there is a change in the lease term or a change in the assessment of whether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived asset impairment policy. The Company accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments made for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration of less than twelve months are recorded directly to lease expense. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Upon application of acquisition accounting, property, plant and equipment are measured at estimated fair value as of the acquisition date to establish a new historical cost basis. Provisions for depreciation are based on estimated useful lives of the assets using the straight-line method. Useful lives generally range from 10 to 35 years for buildings and improvements and 3 to 10 years for machinery and equipment. Expenditures for repairs and maintenance are expensed as incurred. Assets that management intends to dispose of and that meet held for sale criteria are carried at the lower of the carrying value or fair value less costs to sell. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is assigned to reporting units based on the difference between the purchase price as allocated to the reporting units and the estimated fair value of the identified net assets acquired as allocated to the reporting units. Purchased intangible assets with finite lives are carried at their estimated fair values at the time of acquisition less accumulated amortization and any impairment charges. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets, which approximates the pattern that the economic benefits are realized by the Company. |
Asset Impairments | Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. Property, plant and equipment, intangible assets with finite lives and right of use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are adjusted to estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment and are then measured at fair value if an impairment is determined to exist. See Notes 3 and 9 for discussion of asset impairment charges. |
Inventory Repurchase Obligations | Inventory Repurchase Obligations The Company periodically enters into sell / buy transactions with its contract manufacturers, where it sells certain component inventory to its contract manufacturers for use in its finished goods. The Company is obligated to subsequently repurchase this inventory either as a finished food or the original component inventory if it is not consumed after a specific period of time. The Company records an accounts receivable and a corresponding contract manufacturer inventory repurchase obligation in accrued and other liabilities related to these transactions. The Company does not record a sale upon shipment of the inventory to the contract manufacturer and the original value of the inventory remains in its inventory balance. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the satisfaction of distinct obligations to transfer goods and services to customers. The Company’s revenue is generated primarily from product or equipment sales. The Company also generates revenue from custom design and installation services as well as bundled sales arrangements that include product, software and services. The Company applies a five-step approach as defined in ASC 606, Revenue from Contracts with Customers, in determining the amount and timing of revenue to be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when a corresponding performance obligation is satisfied. Most contracts with customers are to provide distinct products or services within a single contract. However, if a contract is separated into more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling price. Product sales to end-customers or distributors represent over 90 % of the Company’s revenue and are recognized at a point-in-time, which is generally at the point in time when products have been shipped, right to payment has been obtained and risk of loss has been transferred. Certain of the Company’s product performance obligations include proprietary operating system software, which typically is not considered separately identifiable. Therefore, sales of these products and the related software are considered one performance obligation. License contracts include revenue recognized for the licensing of intellectual property, including software, sold separately without products. Functional intellectual property licenses do not meet the criteria for revenue to be recognized over time and revenue is most commonly recognized upon delivery of the license/software to the customer. The Company has service arrangements where net sales are recognized over time. These arrangements include a variety of post-contract support service offerings, which are generally recognized over time as the services are provided, including the following: maintenance and support services provided under annual service-level agreements; “Day 2” professional services to help customers maximize their utilization of deployed systems; and installation services related to the routine installation of equipment ordered by the customer at the customer’s site. Revenue is measured based on the consideration the Company expects to be entitled based on customer contracts. Sales are adjusted for variable consideration amounts, including but not limited to estimated discounts, rebates, distributor price protection programs and returns. These estimates are determined based upon historical experience, contract terms, inventory levels in the distributor channel and other related factors. Adjustments to variable consideration estimates are recorded when circumstances indicate revisions may be necessary. Variable consideration is primarily related to the Company's sales to distributors, system integrators and value-added resellers. A contract liability for deferred revenue is recorded when consideration is received or is unconditionally due from a customer prior to transferring control of goods or services to the customer under the terms of a contract. Deferred revenue balances typically result from advance payments received from customers for product contracts or from billings in excess of revenue recognized on services arrangements. Unbilled receivables are recorded when revenues are recognized in advance of invoice issuance. These assets are presented on a combined basis with accounts receivable and are converted to accounts receivable once the Company’s right to the consideration becomes unconditional, which varies by contract but is generally based on achieving certain acceptance milestones. The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would be one year or less. |
Shipping and Handling Costs | Shipping and Handling Costs The Company includes shipping and handling costs billed to customers in net sales and includes the costs incurred to transport product to customers as well as certain internal handling costs, which relate to activities to prepare goods for shipment, as cost of sales. Shipping and handling costs incurred after control is transferred to the customer are accounted for as fulfillment costs and are not accounted for as separate revenue obligations. |
Taxes Collected from Customers | Tax Collected from Customers Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, which are collected by the Company from customers, are excluded from net sales. |
Advertising Costs | Advertising Costs Advertising costs are expensed in the period in which they are incurred and are reflected in selling, general and administrative expense on the Consolidated Statements of Operations. Advertising expense was $ 39.4 million, $ 35.8 million and $ 45.9 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Product Warranties | Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer assurance-type warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over various periods, depending on the product subject to the warranty and the terms of the individual agreements. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. |
Research and Development | Research and Development Research and development (R&D) costs are expensed in the period in which they are incurred. R&D costs include materials and equipment that have no alternative future use, depreciation on equipment and facilities currently used for R&D purposes, personnel costs, contract services and reasonable allocations of indirect costs, if clearly related to an R&D activity. Expenditures in the pre-production phase of an R&D project are recorded as R&D expense. However, costs incurred in the pre-production phase that are associated with output actually used in production are recorded in cost of sales. A project is considered finished with pre-production efforts when management determines that it has achieved acceptable levels of scrap and yield, which vary by project. Expenditures related to ongoing production are recorded in cost of sales. |
Restructuring | Restructuring The Company records restructuring charges associated with management-approved restructuring plans, which could include the elimination of job functions, closure or relocation of facilities, reorganization of operations, changes in management structure, workforce reductions or other actions. Restructuring charges may include ongoing and enhanced termination benefits related to employee separations, contract termination costs, impairment of certain assets and other related costs associated with exit or disposal activities. Severance benefits are provided to employees primarily under the Company’s ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination and it becomes probable that employees will be separated and entitled to benefits at amounts that can be reasonably estimated. In some instances, the Company enhances its ongoing termination benefits with one-time termination benefits, which are recognized when employees are notified of their enhanced termination benefits. |
Foreign Currency Translation | Foreign Currency Translation For the years ended December 31, 2022, 2021 and 2020 , approximately 38 %, 42 % and 39 %, respectively, of the Company’s net sales were to customers located outside the U.S. A portion of these sales was denominated in currencies other than the U.S. dollar, particularly sales from the Company’s foreign subsidiaries. The financial position and results of operations of certain of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Revenues and expenses of these subsidiaries have been translated into U.S. dollars at average exchange rates prevailing during the period. Assets and liabilities of these subsidiaries have been translated at the exchange rates as of the balance sheet date. Translation gains and losses are recorded in accumulated other comprehensive loss. Upon sale or liquidation of an investment in a foreign subsidiary, the amount of net translation gains or losses that have been accumulated in other comprehensive loss attributable to that investment are reported as a gain or loss in earnings in the period in which the sale or liquidation occurs. Aggregate foreign currency gains and losses, such as those resulting from the settlement of receivables or payables, foreign currency contracts and short-term intercompany advances in a currency other than the subsidiary’s functional currency, are recorded currently in earnings (included in other expense, net) and resulted in losses of $ 4.1 million, $ 4.4 million and $ 19.2 million during the years ended December 31, 2022, 2021 and 2020, respectively. Foreign currency remeasurement gains and losses related to certain long-term intercompany loans that are not expected to be settled in the foreseeable future are recorded in accumulated other comprehensive loss. |
Equity-Based Compensation | Equity-Based Compensation The estimated fair value of stock awards is recognized as expense over the requisite service periods. Forfeitures of stock awards are recognized as they occur. The Company records deferred tax assets related to compensation expense for awards that are expected to result in future tax deductions for the Company, based on the amount of compensation cost recognized and the Company’s statutory tax rate in the jurisdiction in which it expects to receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and actual tax deductions reported on the Company’s income tax return are recorded in the Consolidated Statements of Operations within income tax expense benefit. |
Income Taxes | Income Taxes Deferred income taxes reflect the future tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The Company records a valuation allowance, when appropriate, to reduce deferred tax assets to an amount that is more likely than not to be realized. Tax benefits that result from uncertain tax positions may be recognized only if they are considered more likely than not to be sustainable, based on their technical merits. The amount of benefit to be recognized is the largest amount of tax benefit that is at least 50 % likely to be realized. In addition, the Company does not provide for U.S. taxes related to the foreign currency remeasurement gains and losses on its long-term intercompany loans with foreign subsidiaries. These loans are not expected to be repaid in the foreseeable future, and the foreign currency gains and losses are therefore recorded to accumulated other comprehensive loss. The Company records the income tax effects related to the activity of its defined benefit plans and hedging instruments in accumulated other comprehensive loss at the currently enacted tax rate and reclassifies it to net income (loss) in the same period that the related pre-tax accumulated comprehensive income (loss) reclassifications are recognized. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) is computed by dividing net income (loss), less any dividends related to the Series A convertible preferred stock (Convertible Preferred Stock), by the weighted average number of common shares outstanding during the period. The numerator in diluted EPS is based on the basic EPS numerator adjusted to add back any dividends related to the Convertible Preferred Stock, subject to antidilution requirements. The denominator used in diluted EPS is based on the basic EPS computation plus the effect of potentially dilutive common shares related to the Convertible Preferred Stock and equity-based compensation plans, subject to antidilution requirements. For the years ended December 31, 2022, 2021 and 2020 , 11.3 million, 12.2 million and 17.4 million shares, respectively, of outstanding equity-based compensation awards were not included in the computation of diluted EPS because either the effect was antidilutive or the performance conditions were not met. Of those amounts, for the years ended December 31, 2022, 2021 and 2020, 2.9 million, 4.9 million and 4.4 million shares, respectively, would have been considered dilutive if the Company had not been in a net loss position. For the years ended December 31, 2022, 2021 and 2020, 39.1 million, 37.9 million and 37.1 million, respectively, of as-if converted shares related to the Convertible Preferred Stock were excluded from the diluted share count because they were anti-dilutive; however, they may have been considered dilutive if the Company had not been in a net loss position . Year ended December 31, 2022 2021 2020 Numerator: Net loss $ ( 1,286.9 ) $ ( 462.6 ) $ ( 573.4 ) Dividends on Series A convertible preferred stock ( 59.0 ) ( 57.3 ) ( 56.1 ) Net loss attributable to common stockholders $ ( 1,345.9 ) $ ( 519.9 ) $ ( 629.5 ) Denominator: Weighted average common shares outstanding – basic 207.4 203.6 196.8 Dilutive effect of as-if converted Series A convertible preferred stock — — — Dilutive effect of equity-based awards — — — Weighted average common shares outstanding – diluted 207.4 203.6 196.8 Loss per share: Basic $ ( 6.49 ) $ ( 2.55 ) $ ( 3.20 ) Diluted $ ( 6.49 ) $ ( 2.55 ) $ ( 3.20 ) |
Concentrations of Risk | Concentrations of Risk Non-derivative financial instruments used by the Company in the normal course of business include letters of credit and commitments to extend credit, primarily accounts receivable. The Company generally does not require collateral on its accounts receivable. These financial instruments involve risk, including the credit risk of nonperformance by the counterparties to those instruments, and the actual loss may exceed the reserves provided in the Company’s Consolidated Balance Sheets. See Note 16 for further discussion of customer-related concentrations of risk. The Company manages its exposures to credit risk associated with accounts receivable using such tools as credit approvals, credit limits and monitoring procedures. CommScope estimates the allowance for doubtful accounts based on the actual payment history and individual circumstances of significant customers as well as the age of receivables. In management’s opinion, as of December 31, 2022, the Company did not have significant unreserved risk of credit loss due to the non-performance of customers or other counterparties related to amounts receivable. However, an adverse change in financial condition of a significant customer or group of customers or in the telecommunications industry could materially affect the Company’s estimates related to doubtful accounts. The principal raw materials and components purchased by CommScope (aluminum, copper, steel, bimetals, optical fiber, plastics and other polymers, capacitors, memory devices and silicon chips) are subject to changes in market price as these materials are linked to various commodity markets. The Company attempts to mitigate these risks through effective requirements planning and by working closely with its key suppliers to obtain the best possible pricing and delivery terms. The Company relies on sole suppliers or a limited group of suppliers for certain key components (memory devices, capacitors and silicon chips), subassemblies and modules and a limited group of contract manufacturers to manufacture a significant portion of its products. Any disruption or termination of these arrangements could have a material adverse impact on the Company’s results of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2022 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . The new guidance simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share, along with expanded disclosures. The impact of adopting this new guidance was not material to the consolidated financial statements. Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The new guidance improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability, as well as payment terms which affect subsequent revenue recognized by the acquirer. According to the guidance, at the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if the acquirer had originated the contracts. The adoption of this new guidance had no impact to the consolidated financial statements but will be applied prospectively to future business combinations. Issued but Not Adopted In September 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-04, Liabilities–Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The new guidance is expected to improve the transparency of supplier finance programs by requiring that a buyer in a supplier finance program disclose sufficient qualitative and quantitative information about the program to allow a user of its financial statements to understand the program's nature, activity during the period, changes from period to period and potential magnitude. ASU No. 2022-04 is effective for the Company as of January 1, 2023 on a retrospective basis including interim periods within those fiscal years, except for the requirement to disclose rollforward information which is effective for the Company as of January 1, 2024. Early adoption is permitted. The Company had no material supplier finance programs in 2022. The Company does not expect this guidance to have a material impact on the consolidated financial statements. In March 2020, January 2021 and December 2022, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope and ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, respectively. Together, the ASUs provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The most recent amendment defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of EPS, Weighted Average Common Shares and Potential Common Shares Outstanding | . Year ended December 31, 2022 2021 2020 Numerator: Net loss $ ( 1,286.9 ) $ ( 462.6 ) $ ( 573.4 ) Dividends on Series A convertible preferred stock ( 59.0 ) ( 57.3 ) ( 56.1 ) Net loss attributable to common stockholders $ ( 1,345.9 ) $ ( 519.9 ) $ ( 629.5 ) Denominator: Weighted average common shares outstanding – basic 207.4 203.6 196.8 Dilutive effect of as-if converted Series A convertible preferred stock — — — Dilutive effect of equity-based awards — — — Weighted average common shares outstanding – diluted 207.4 203.6 196.8 Loss per share: Basic $ ( 6.49 ) $ ( 2.55 ) $ ( 3.20 ) Diluted $ ( 6.49 ) $ ( 2.55 ) $ ( 3.20 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Intangible Assets Other Than Goodwill | The following table presents details of the Company’s intangible assets other than goodwill as of December 31, 2022 and 2021: 2022 2021 Gross Carrying Accumulated Amortization Net Carrying Amount Gross Carrying Accumulated Amortization Net Carrying Amount Customer base $ 3,486.5 $ 1,941.5 $ 1,545.0 $ 3,508.4 $ 1,779.3 $ 1,729.1 Trade names and trademarks 1,020.6 502.9 517.7 1,022.3 439.8 582.5 Patents and technologies 2,014.4 1,603.6 410.8 2,025.7 1,310.0 715.7 Other 58.3 58.3 — 58.3 58.3 — Total intangible assets $ 6,579.8 $ 4,106.3 $ 2,473.5 $ 6,614.7 $ 3,587.4 $ 3,027.3 |
Estimated Amortization Expense for Next Five Years | Future amortization expense as of December 31, 2022 is as follows: Estimated 2023 $ 429.8 2024 342.7 2025 277.8 2026 229.1 2027 199.1 Thereafter 995.0 |
Goodwill by Reportable Segment | The following table presents the activity in goodwill by reportable segment. December 31, 2021 Activity December 31, 2022 Goodwill Accumulated Impairment Losses Total Additions (Deductions) Impairment Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total CCS $ 2,307.3 $ ( 51.5 ) $ 2,255.8 $ — $ — $ ( 26.4 ) $ 2,280.9 $ ( 51.5 ) $ 2,229.4 OWN 666.6 ( 159.5 ) 507.1 — — ( 6.3 ) 660.3 ( 159.5 ) 500.8 NICS 653.0 ( 41.2 ) 611.8 — — ( 3.6 ) 649.4 ( 41.2 ) 608.2 ANS 1,999.1 ( 142.1 ) 1,857.0 — ( 1,119.6 ) ( 3.4 ) 1,995.7 ( 1,261.7 ) 734.0 Home 413.2 ( 413.2 ) — — — — 413.2 ( 413.2 ) — Total $ 6,039.2 $ ( 807.5 ) $ 5,231.7 $ — $ ( 1,119.6 ) $ ( 39.7 ) $ 5,999.5 $ ( 1,927.1 ) $ 4,072.4 December 31, 2020 Activity December 31, 2021 Goodwill Accumulated Impairment Losses Total Additions (Deductions) Impairment Foreign Exchange and Other Goodwill Accumulated Impairment Losses Total CCS $ 2,323.8 $ ( 51.5 ) $ 2,272.3 $ — $ — $ ( 16.5 ) $ 2,307.3 $ ( 51.5 ) $ 2,255.8 OWN 670.6 ( 159.5 ) 511.1 — — ( 4.0 ) 666.6 ( 159.5 ) 507.1 NICS 657.8 ( 41.2 ) 616.6 — — ( 4.8 ) 653.0 ( 41.2 ) 611.8 ANS 2,028.6 ( 142.1 ) 1,886.5 ( 13.7 ) — ( 15.8 ) 1,999.1 ( 142.1 ) 1,857.0 Home 399.5 ( 399.5 ) — 13.7 ( 13.7 ) — 413.2 ( 413.2 ) — Total $ 6,080.3 $ ( 793.8 ) $ 5,286.5 $ — $ ( 13.7 ) $ ( 41.1 ) $ 6,039.2 $ ( 807.5 ) $ 5,231.7 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Year Ended December 31, 2022 2021 2020 Allowance for doubtful accounts, beginning of period $ 63.7 $ 40.3 $ 35.4 Provision 22.6 25.8 5.0 Write-offs ( 2.1 ) ( 0.9 ) ( 3.2 ) Foreign exchange and other ( 1.4 ) ( 1.5 ) 3.1 Allowance for doubtful accounts, end of period $ 82.8 $ 63.7 $ 40.3 |
Summary of the Balance Sheet Location and Amounts of Contract Assets and Liabilities from Contracts with Customers | The following table provides the balance sheet location and amounts of contract assets, or unbilled accounts receivable, and contract liabilities, or deferred revenue, from contracts with customers as of December 31, 2022 and December 31, 2021. December 31, Contract Balance Type Balance Sheet Location 2022 2021 Unbilled accounts receivable Accounts receivable, net of allowance for doubtful accounts $ 35.3 $ 35.0 Deferred revenue - current Accrued and other liabilities $ 97.9 $ 94.6 Deferred revenue - noncurrent Other noncurrent liabilities 63.4 61.1 Total contract liabilities $ 161.3 $ 155.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases: Year Ended December 31, 2022 2021 2020 Operating cash paid to settle lease liabilities $ 59.4 $ 71.5 $ 74.6 Right of use asset additions in exchange for lease liabilities 43.5 25.3 21.9 |
Summary of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases: December 31, Balance Sheet Location 2022 2021 Right of use assets Other noncurrent assets $ 149.0 $ 162.5 Lease liabilities - current Accrued and other liabilities $ 47.7 $ 46.7 Lease liabilities - noncurrent Other noncurrent liabilities 123.5 140.8 Total lease liabilities $ 171.2 $ 187.5 Weighted average remaining lease term (in years) 5.3 Weighted average discount rate 8.8 % |
Summary of Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2022 are as follows: Operating Leases 2023 57.2 2024 45.0 2025 31.8 2026 24.4 2027 15.0 Thereafter 47.9 Total minimum lease payments $ 221.3 Less: imputed interest ( 50.1 ) Total $ 171.2 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable | Accounts Receivable December 31, 2022 2021 Accounts receivable - trade $ 1,545.3 $ 1,499.9 Accounts receivable - other 61.1 96.4 Allowance for doubtful accounts ( 82.8 ) ( 63.7 ) Total accounts receivable, net $ 1,523.6 $ 1,532.6 |
Inventories | Inventories December 31, 2022 2021 Raw materials $ 535.8 $ 436.0 Work in process 212.7 178.3 Finished goods 839.6 821.5 Total inventories, net $ 1,588.1 $ 1,435.8 |
Property, Plant and Equipment | Property, Plant and Equipment December 31, 2022 2021 Land and land improvements $ 52.2 $ 54.1 Buildings and improvements 340.9 334.4 Machinery and equipment 1,038.1 968.0 Construction in progress 51.9 87.2 1,483.1 1,443.7 Accumulated depreciation ( 873.5 ) ( 787.4 ) Total property, plant and equipment, net $ 609.6 $ 656.3 D |
Accrued and Other Liabilities | Accrued and Other Liabilities December 31, 2022 2021 Compensation and employee benefit liabilities $ 301.3 $ 304.7 Accrued interest 118.1 118.3 Deferred revenue 97.9 94.6 Contract manufacturer inventory repurchase obligation 79.1 14.5 Restructuring liabilities 58.9 41.0 Operating lease liabilities 47.7 46.7 Product warranty accrual 44.8 54.0 Other 302.2 316.0 Total accrued and other liabilities $ 1,050.0 $ 989.8 |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | The following table presents changes in accumulated other comprehensive loss (AOCL), net of tax: Year Ended December 31, 2022 2021 Foreign currency translation Balance at beginning of period $ ( 165.8 ) $ ( 80.5 ) Other comprehensive loss ( 104.3 ) ( 86.4 ) Amounts reclassified from AOCL ( 0.2 ) 1.1 Balance at end of period $ ( 270.3 ) $ ( 165.8 ) Defined benefit plan activity Balance at beginning of period $ ( 13.4 ) $ ( 36.4 ) Other comprehensive income (loss) ( 1.4 ) 24.1 Amounts reclassified from AOCL — ( 1.1 ) Balance at end of period $ ( 14.8 ) $ ( 13.4 ) Hedging instruments Balance at beginning of period $ ( 27.2 ) $ ( 39.0 ) Other comprehensive income 16.0 11.8 Balance at end of period $ ( 11.2 ) $ ( 27.2 ) Net AOCL at end of period $ ( 296.3 ) $ ( 206.4 ) |
Cash Flow Information | Cash Flow Information Year Ended December 31, 2022 2021 2020 Cash paid during the period for: Income taxes, net of refunds $ 130.7 $ 79.4 $ 94.4 Interest 563.2 525.9 520.9 |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Debt | December 31, 2022 2021 7.125 % senior notes due July 2028 $ 700.0 $ 700.0 5.00 % senior notes due March 2027 750.0 750.0 8.25 % senior notes due March 2027 1,000.0 1,000.0 6.00 % senior notes due June 2025 1,300.0 1,300.0 4.75 % senior secured notes due September 2029 1,250.0 1,250.0 6.00 % senior secured notes due March 2026 1,500.0 1,500.0 Senior secured term loan due April 2026 3,096.0 3,128.0 Senior secured revolving credit facility — — Total principal amount of debt $ 9,596.0 $ 9,628.0 Less: Original issue discount, net of amortization ( 15.9 ) ( 20.3 ) Less: Debt issuance costs, net of amortization ( 78.5 ) ( 97.2 ) Less: Current portion ( 32.0 ) ( 32.0 ) Total long-term debt $ 9,469.6 $ 9,478.5 |
Scheduled Maturities of Long-Term Debt | The following table summarizes scheduled maturities of long-term debt as of December 31, 2022: 2023 2024 2025 2026 2027 Thereafter Scheduled maturities of long-term debt $ 32.0 $ 32.0 $ 1,332.0 $ 4,500.0 $ 1,750.0 $ 1,950.0 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Not Designated as Hedging Instrument [Member] | |
Balance Sheet Location and Fair Value of Company | The following table presents the balance sheet location and fair value of the Company’s derivatives not designated as hedging instruments: December 31, Contract Type Location of Asset (Liability) 2022 2021 Foreign currency contracts Prepaid expenses and other current assets $ 9.9 $ 5.7 Foreign currency contracts Accrued and other liabilities ( 6.5 ) ( 0.8 ) Total derivatives not designated as $ 3.4 $ 4.9 |
Pretax Impact of Foreign Currency Forward Contracts, Both Matured and Outstanding, not Designated as Hedging Instruments | The pretax impact of the foreign currency forward contracts, both matured and outstanding, on the Consolidated Statements of Operations is as follows: Year Ended December 31, Location of Gain (Loss) 2022 2021 2020 Other expense, net $ ( 19.0 ) $ ( 2.6 ) $ 24.9 |
Derivative Instruments Designated as Hedging Instrument [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | |
Balance Sheet Location and Fair Value of Company | The following table presents the balance sheet location and fair value of the derivative instruments designated as cash flow hedges of interest rate risk: December 31, Contract Type Location of Asset (Liability) 2022 2021 Interest rate swap contracts Other noncurrent assets $ 8.6 $ — Interest rate swap contracts Accrued and other liabilities — ( 1.5 ) Interest rate swap contracts Other noncurrent liabilities — ( 10.3 ) Total derivatives designated as cash $ 8.6 $ ( 11.8 ) |
Impact of Effective Portion of Derivatives, Designated as Hedging Instruments | The impact of the effective portion of the interest rate swap contracts designated as cash flow hedging instruments on the Consolidated Statements of Comprehensive Loss is as follows: Year Ended December 31, Location of Gain (Loss) 2022 2021 2020 Other comprehensive income (loss), net of tax $ 16.0 $ 14.4 $ ( 10.2 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Debt Instruments, Interest Rate Derivatives and Foreign Currency Contracts | The carrying amounts, estimated fair values and valuation input levels of the Company’s debt instruments, interest rate derivatives and foreign currency contracts as of December 31, 2022 and 2021, are as follows: December 31, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value Valuation Assets: Foreign currency contracts $ 9.9 $ 9.9 $ 5.7 $ 5.7 Level 2 Interest rate swap contracts 8.6 8.6 — — Level 2 Liabilities: 7.125% senior notes due 2028 $ 700.0 $ 502.6 $ 700.0 $ 690.4 Level 2 5.00% senior notes due 2027 750.0 513.4 750.0 705.0 Level 2 8.25% senior notes due 2027 1,000.0 780.8 1,000.0 1,023.8 Level 2 6.00% senior notes due 2025 1,300.0 1,183.4 1,300.0 1,300.0 Level 2 4.75% senior secured notes due 2029 1,250.0 1,000.0 1,250.0 1,240.3 Level 2 6.00% senior secured notes due 2026 1,500.0 1,383.3 1,500.0 1,554.4 Level 2 Senior secured term loan due 2026 3,096.0 2,925.7 3,128.0 3,092.8 Level 2 Foreign currency contracts 6.5 6.5 0.8 0.8 Level 2 Interest rate swap contracts — — 11.8 11.8 Level 2 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Company's Net Pretax Restructuring Charges | The Company’s net pretax restructuring activity included in restructuring costs, net on the Consolidated Statements of Operations, by segment, was as follows: Year Ended December 31, 2022 2021 2020 CCS $ 17.1 $ 62.0 $ 25.9 OWN 22.4 3.6 15.7 NICS 9.9 8.5 8.0 ANS 12.2 9.2 8.8 Home 1.3 8.6 30.0 Total $ 62.9 $ 91.9 $ 88.4 |
Restructuring Reserves Included in Company's Consolidated Balance Sheets | Restructuring liabilities were included in the Company’s Consolidated Balance Sheets as follows: December 31, 2022 2021 Accrued and other liabilities $ 58.9 $ 41.0 Other noncurrent liabilities 0.5 28.2 Total restructuring liabilities $ 59.4 $ 69.2 |
Activity within Liability Established for Restructuring Actions, Included in Other Accrued Liabilities | The activity within the liability established for CommScope NEXT restructuring actions was as follows: Employee- Other Total Balance at December 31, 2020 $ — $ — $ — Additional expense, net 86.7 4.0 90.7 Cash paid ( 26.6 ) — ( 26.6 ) Foreign exchange and other non-cash items 0.5 ( 4.0 ) ( 3.5 ) Balance at December 31, 2021 60.6 — 60.6 Additional expense, net 50.7 8.6 59.3 Cash paid ( 48.9 ) ( 0.5 ) ( 49.4 ) Foreign exchange and other non-cash items ( 3.7 ) ( 8.1 ) ( 11.8 ) Balance at December 31, 2022 $ 58.7 $ — $ 58.7 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Defined Benefit Pension Plan | The following table summarizes information for the defined benefit pension plans: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation, beginning $ 12.5 $ 13.5 $ 275.5 $ 310.5 Service cost — — 5.7 6.8 Interest cost 0.3 0.3 3.7 3.1 Actuarial gain ( 2.6 ) ( 0.5 ) ( 68.7 ) ( 20.6 ) Benefits paid ( 0.8 ) ( 0.8 ) ( 4.5 ) ( 5.5 ) Settlements — — ( 6.2 ) ( 3.9 ) Curtailment — — — ( 4.0 ) Foreign exchange and other — — ( 22.2 ) ( 10.9 ) Benefit obligation, ending $ 9.4 $ 12.5 $ 183.3 $ 275.5 Change in plan assets: Fair value of plan assets, beginning $ — $ — $ 279.4 $ 279.1 Employer and plan participant contributions 0.8 0.8 6.4 7.5 Return on plan assets — — ( 69.9 ) 11.8 Benefits paid ( 0.8 ) ( 0.8 ) ( 4.5 ) ( 5.5 ) Settlements — — ( 6.2 ) ( 3.9 ) Foreign exchange and other — — ( 24.0 ) ( 9.6 ) Fair value of plan assets, ending $ — $ — $ 181.2 $ 279.4 Funded status, net liability (asset) $ 9.4 $ 12.5 $ 2.1 $ ( 3.9 ) |
Balance Sheet Location of Pension and Postretirement Liabilities and Assets | The following table presents the balance sheet location of the Company's pension liabilities and assets: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Accrued and other liabilities $ ( 0.9 ) $ ( 0.7 ) $ ( 0.7 ) $ ( 0.4 ) Other noncurrent liabilities ( 8.5 ) ( 11.8 ) ( 15.3 ) ( 22.0 ) Other noncurrent assets — — 13.9 26.3 |
Summary of Company's Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | The following table summarizes information for the Company’s pension plans with an accumulated benefit obligation in excess of plan assets: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Projected benefit obligation $ 9.4 $ 12.5 $ 44.1 $ 48.8 Accumulated benefit obligation 9.4 12.5 41.3 45.9 Fair value of plan assets — — 28.4 27.4 |
Summary of Pretax Amounts Included in Accumulated Other Comprehensive Loss | The following table summarizes pretax amounts included in accumulated other comprehensive loss: December 31, U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Unrecognized net actuarial gain (loss) $ 1.0 $ ( 1.7 ) $ ( 16.5 ) $ ( 13.6 ) Unrecognized prior service cost — — — ( 0.1 ) Total $ 1.0 $ ( 1.7 ) $ ( 16.5 ) $ ( 13.7 ) |
Pretax Amounts for Net Periodic Benefit Cost and Other Amounts Included in Other Comprehensive Income (Loss) for the Defined Benefit Pension and Other Postretirement Benefit Plans | Actuarial gains and losses are amortized using a corridor approach. The corridor is equal to 10 % of the greater of the benefit obligation and the fair value of the assets. Gains and losses in excess of the corridor are generally amortized over the average remaining life of the plan participants. Pretax amounts for net periodic benefit cost and other amounts included in other comprehensive income (loss) for the defined benefit pension plans consisted of the following components: Year Ended December 31, U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Service cost $ — $ — $ — $ 5.7 $ 6.8 $ 4.3 Interest cost 0.3 0.3 0.3 3.7 3.1 4.0 Recognized actuarial loss 0.1 0.1 0.1 0.1 1.6 1.3 Expected return on plan assets — — — ( 4.9 ) ( 6.4 ) ( 7.0 ) Settlement loss — — — 1.6 0.3 1.5 Curtailment gain — — — — ( 2.5 ) — Net periodic benefit cost 0.4 0.4 0.4 6.2 2.9 4.1 Changes in plan assets and benefit obligations Change in unrecognized net actuarial loss (gain) ( 2.7 ) ( 0.6 ) 1.0 2.9 ( 28.0 ) 13.4 Change in unrecognized prior service cost — — — ( 0.1 ) ( 0.4 ) ( 0.2 ) Curtailment and settlements — — — — ( 1.8 ) ( 1.5 ) Total included in other comprehensive income (loss) ( 2.7 ) ( 0.6 ) 1.0 2.8 ( 30.2 ) 11.7 Total recognized in net periodic benefit cost and $ ( 2.3 ) $ ( 0.2 ) $ 1.4 $ 9.0 $ ( 27.3 ) $ 15.8 |
Significant Weighted Average Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Cost | Significant weighted average assumptions used in determining benefit obligations and net periodic benefit cost are as follows: U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Benefit obligations: Discount rate 4.99 % 2.55 % 2.07 % 4.37 % 1.47 % 1.02 % Rate of compensation increase — % — % — % 3.36 % 3.79 % 3.59 % Net periodic benefit cost: Discount rate 2.55 % 2.07 % 2.95 % 1.47 % 1.02 % 1.65 % Rate of return on plan assets — % — % — % 4.03 % 1.96 % 2.33 % Rate of compensation increase — % — % — % 3.79 % 3.59 % 3.74 % |
Summary of the Company's Plan Assets for Estimated Fair Values and the Valuation Input Levels | The Company had no U.S. defined benefit pension plan assets as of December 31, 2022 or 2021. The estimated fair values and the valuation input levels of the Company’s non-U.S. defined benefit pension plan assets are as follows: December 31, 2022 Non-U.S. Plans Level 1 Level 2 Mutual funds: International equity $ 19.7 $ 7.7 International debt 36.8 76.0 Absolute return — 3.8 Other 7.7 29.5 Total $ 64.2 $ 117.0 December 31, 2021 Non-U.S. Plans Level 1 Level 2 Mutual funds: International equity $ 25.6 $ 32.2 International debt 47.4 126.5 Absolute return — 9.5 Other 9.6 28.6 Total $ 82.6 $ 196.8 |
Summarizes Projected Benefit Payments from Pension and Other Postretirement Benefit Plans | The following table summarizes projected benefit payments from pension plans through 2032, including benefits attributable to estimated future service (in millions): U.S. Plans Non-U.S. Plans 2023 $ 0.9 $ 14.8 2024 0.9 10.0 2025 0.9 10.3 2026 0.9 13.8 2027 0.8 11.6 2028-2032 3.7 57.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes Includes Results from Domestic and International Operations | oss before income taxes includes the results from domestic and international operations as follows: Year Ended December 31, 2022 2021 2020 U.S. companies $ ( 1,359.2 ) $ ( 541.0 ) $ ( 689.7 ) Non-U.S. companies 59.2 6.5 35.2 Loss before income taxes $ ( 1,300.0 ) $ ( 534.5 ) $ ( 654.5 ) |
Summary of Components of Income Tax Benefit | The components of income tax benefit were as follows: Year Ended December 31, 2022 2021 2020 Current: Federal $ 42.0 $ ( 19.1 ) $ ( 0.1 ) Foreign 45.5 86.7 67.3 State 17.8 8.0 6.4 Current income tax expense $ 105.3 $ 75.6 $ 73.6 Deferred: Federal $ ( 90.7 ) $ ( 123.9 ) $ ( 131.0 ) Foreign ( 17.1 ) ( 14.0 ) ( 7.1 ) State ( 10.6 ) ( 9.6 ) ( 16.6 ) Deferred income tax benefit ( 118.4 ) ( 147.5 ) ( 154.7 ) Total income tax benefit $ ( 13.1 ) $ ( 71.9 ) $ ( 81.1 ) |
Summary of Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Benefit for Income Taxes | The reconciliation of income taxes calculated at the statutory U.S. federal income tax rate to the Company’s benefit for income taxes was as follows: Year Ended December 31, 2022 2021 2020 Benefit for income taxes at federal statutory rate $ ( 273.0 ) $ ( 112.2 ) $ ( 137.4 ) State income taxes, net of federal tax effect ( 8.4 ) ( 20.9 ) ( 21.6 ) Other permanent items 12.5 7.0 11.0 Equity-based compensation ( 5.6 ) 7.0 16.1 Other changes in tax laws and tax rulings 4.7 37.9 ( 38.2 ) Goodwill related items 232.0 2.8 42.8 Base erosion and anti-abuse tax — 10.2 — Foreign-derived intangible income deduction ( 7.4 ) ( 7.5 ) ( 3.8 ) Federal tax credits ( 26.4 ) ( 23.2 ) ( 23.4 ) Change in unrecognized tax benefits ( 7.1 ) ( 13.2 ) ( 2.6 ) Withholding taxes and Subpart F income, net of foreign tax credits 48.8 19.7 23.6 Foreign earnings taxed at other than federal rate 6.6 5.6 20.9 Tax provision adjustments and revisions to prior years' returns ( 3.2 ) ( 5.8 ) 7.1 Change in valuation allowances 13.4 20.7 24.4 Total benefit for income taxes $ ( 13.1 ) $ ( 71.9 ) $ ( 81.1 ) |
Components of Deferred Income Tax Assets and Liabilities and Classification of Deferred Tax Balances | The components of deferred income tax assets and liabilities and the classification of deferred tax balances on the balance sheet were as follows: December 31, 2022 2021 Deferred tax assets: Accounts receivable, inventory and warranty reserves $ 138.3 $ 109.4 Employee benefits 60.4 50.9 Foreign net operating loss and tax credit carryforwards 573.3 649.0 Federal net operating loss and tax credit carryforwards 22.0 115.2 State net operating loss and tax credit carryforwards 103.6 108.9 Unrecognized tax benefits 30.8 43.0 Interest limitation 75.4 51.7 Capitalized research and development costs 471.6 391.6 Other 92.6 85.9 Total deferred tax assets 1,568.0 1,605.6 Valuation allowance ( 643.1 ) ( 706.7 ) Total deferred tax assets, net of valuation allowance 924.9 898.9 Deferred tax liabilities: Intangible assets $ ( 542.7 ) $ ( 629.7 ) Property, plant and equipment ( 15.3 ) ( 19.1 ) Undistributed foreign earnings ( 20.6 ) ( 17.6 ) Other ( 13.0 ) ( 13.6 ) Total deferred tax liabilities ( 591.6 ) ( 680.0 ) Net deferred tax asset $ 333.3 $ 218.9 Deferred taxes recognized on the balance sheet: Noncurrent deferred tax asset (included with other noncurrent assets) $ 506.7 $ 427.1 Noncurrent deferred tax liability ( 173.4 ) ( 208.2 ) Net deferred tax asset $ 333.3 $ 218.9 |
Reconciliation of Beginning and End of Period Amounts of Gross Unrecognized Tax Benefits | The following table reflects a reconciliation of the beginning and end of period amounts of gross unrecognized tax benefits, excluding interest and penalties: Year Ended December 31, 2022 2021 2020 Balance at beginning of period $ 176.6 $ 190.5 $ 191.9 Increase related to prior periods 1.1 0.7 2.5 Decrease related to prior periods ( 23.3 ) ( 0.3 ) ( 4.5 ) Increase related to current periods 5.1 5.9 5.0 Decrease related to settlements with taxing authorities ( 13.4 ) ( 7.5 ) ( 0.9 ) Decrease related to lapse in statutes of limitations ( 0.6 ) ( 12.7 ) ( 2.6 ) Decrease related to the ARRIS acquisition — — ( 0.9 ) Balance at end of period $ 145.5 $ 176.6 $ 190.5 |
Schedule of Components of Income Tax Expense (Benefit) Presented in Other Comprehensive Income (Loss) | The following table presents income tax expense (benefit) related to amounts presented in other comprehensive income (loss): Year Ended December 31, 2022 2021 2020 Foreign currency translation $ 1.2 $ 1.2 $ ( 5.0 ) Defined benefit plans 0.8 6.6 ( 3.5 ) Total $ 2.0 $ 7.8 $ ( 8.5 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of the Equity-Based Compensation Expense Included in the Statements of Operations | The following table shows a summary of the equity-based compensation expense included in the Consolidated Statements of Operations: Year Ended December 31, 2022 2021 2020 Selling, general and administrative $ 34.6 $ 40.7 $ 63.0 Research and development 18.3 25.8 33.5 Cost of sales 8.2 13.1 18.5 Total equity-based compensation expense $ 61.1 $ 79.6 $ 115.0 |
Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option | The following table presents the weighted average assumptions used to estimate the fair value of these awards granted: Year Ended December 31, 2022 2021 2020 Risk-free interest rate 1.7 % 0.4 % 0.2 % Expected volatility 61.2 % 56.0 % 51.7 % Weighted average fair value at grant date $ 11.21 $ 11.21 $ 4.03 |
Summary of RSU Activity | The following table summarizes the RSU activity (in millions, except per share data): Restricted Weighted Non-vested share units at December 31, 2021 10.4 $ 15.04 Granted 7.3 $ 8.05 Vested and shares issued ( 5.1 ) $ 14.99 Forfeited ( 1.4 ) $ 14.02 Non-vested share units at December 31, 2022 11.2 $ 10.66 |
Summary of PSU Activity | The following table summarizes the PSU activity (in millions, except per share data): Performance Weighted Non-vested share units at December 31, 2021 2.1 $ 7.69 Granted 1.4 $ 9.51 Vested and shares issued ( 0.4 ) $ 8.13 Forfeited ( 0.2 ) $ 15.91 Non-vested share units at December 31, 2022 2.9 $ 8.14 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Activity in Product Warranty Accrual, Included in Other Accrued Liabilities | The following table summarizes the activity in the product warranty accrual, included in accrued and other liabilities and other noncurrent liabilities: Year Ended December 31, 2022 2021 2020 Product warranty accrual, beginning of period $ 66.8 $ 59.5 $ 61.0 Provision for warranty claims 24.7 38.5 30.9 Warranty claims paid ( 36.1 ) ( 30.8 ) ( 32.4 ) Foreign exchange ( 0.4 ) ( 0.4 ) — Product warranty accrual, end of period $ 55.0 $ 66.8 $ 59.5 |
Industry Segments, Major Cust_2
Industry Segments, Major Customers, Related Party Transactions and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment | The following table provides summary financial information by reportable segment: December 31, 2022 2021 Identifiable segment-related assets: CCS $ 4,263.8 $ 4,377.2 OWN 1,166.8 1,386.5 NICS 1,338.1 1,397.0 ANS 2,632.6 3,831.9 Home 1,379.3 1,479.5 Total identifiable segment-related assets 10,780.6 12,472.1 Reconciliation to total assets: Cash and cash equivalents 398.1 360.3 Deferred income tax assets 506.7 427.1 Total assets $ 11,685.4 $ 13,259.5 |
Summary of Net Sales, Adjusted EBITDA, Depreciation Expense and Additions to PP&E by Reportable Segment | The following table provides net sales, adjusted EBITDA, depreciation expense and additions to property, plant and equipment by reportable segment: Year Ended December 31, 2022 2021 2020 Net sales: CCS $ 3,789.6 $ 3,053.8 $ 2,551.8 OWN 1,467.9 1,417.1 1,250.4 NICS 939.7 861.9 847.1 ANS 1,327.5 1,404.6 1,379.1 Home 1,703.4 1,849.3 2,407.5 Consolidated net sales $ 9,228.1 $ 8,586.7 $ 8,435.9 Segment adjusted EBITDA: CCS $ 643.6 $ 448.9 $ 447.5 OWN 269.7 266.8 277.3 NICS 51.9 ( 15.3 ) 12.8 ANS 285.2 391.1 346.3 Home 26.3 25.5 131.3 Total segment adjusted EBITDA 1,276.7 1,117.0 1,215.2 Amortization of intangible assets ( 543.0 ) ( 613.0 ) ( 630.5 ) Restructuring costs, net ( 62.9 ) ( 91.9 ) ( 88.4 ) Equity-based compensation ( 61.1 ) ( 79.6 ) ( 115.0 ) Asset impairments ( 1,119.6 ) ( 13.7 ) ( 206.7 ) Transaction, transformation and integration costs ( 38.2 ) ( 90.3 ) ( 24.9 ) Acquisition accounting adjustments ( 7.3 ) ( 11.5 ) ( 20.6 ) Patent claims and litigation settlements ( 28.5 ) ( 31.7 ) ( 16.3 ) Executive severance — — ( 6.3 ) Reserve of Russian accounts receivable ( 2.7 ) — — Depreciation ( 127.2 ) ( 136.7 ) ( 158.3 ) Consolidated operating income (loss) $ ( 713.8 ) $ 48.6 $ ( 51.8 ) Depreciation expense: CCS $ 58.8 $ 53.6 $ 53.9 OWN 14.3 15.4 17.2 NICS 15.0 19.2 21.0 ANS 22.5 25.8 31.1 Home 16.6 22.7 35.1 Consolidated depreciation expense $ 127.2 $ 136.7 $ 158.3 Additions to property, plant and equipment: CCS $ 64.6 $ 81.5 $ 61.8 OWN 9.9 11.0 12.8 NICS 7.0 13.4 10.1 ANS 11.1 14.6 10.3 Home 8.7 10.9 26.2 Consolidated additions to property, plant and equipment $ 101.3 $ 131.4 $ 121.2 |
Summary of Sales by Geographic Region, Based on Destination of Product Shipments or Service Provided | Sales by geographic region, based on the destination of product shipments or service provided, were as follows: Year Ended December 31, 2022 CCS OWN NICS ANS Home Total Geographic Region: United States (U.S.) $ 2,513.6 $ 1,062.6 $ 539.5 $ 902.4 $ 732.4 $ 5,750.5 Europe, Middle East and Africa (EMEA) 571.9 218.0 250.7 124.2 430.2 1,595.0 Asia Pacific (APAC) 431.4 120.8 114.1 79.2 79.0 824.5 Caribbean and Latin America (CALA) 179.3 32.8 20.3 164.3 199.0 595.7 Canada 93.4 33.7 15.1 57.4 262.8 462.4 Consolidated net sales $ 3,789.6 $ 1,467.9 $ 939.7 $ 1,327.5 $ 1,703.4 $ 9,228.1 Year Ended December 31, 2021 CCS OWN NICS ANS Home Total Geographic Region: United States $ 1,823.6 $ 894.3 $ 490.4 $ 824.5 $ 927.7 $ 4,960.5 Europe, Middle East and Africa 548.0 272.4 238.2 146.7 415.3 1,620.6 Asia Pacific 439.8 150.7 102.5 131.4 114.2 938.6 Caribbean and Latin America 169.1 44.6 18.3 246.8 220.2 699.0 Canada 73.3 55.1 12.5 55.2 171.9 368.0 Consolidated net sales $ 3,053.8 $ 1,417.1 $ 861.9 $ 1,404.6 $ 1,849.3 $ 8,586.7 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policy [Line Items] | |||
Tax benefit | 50% | ||
Performance obligation, description | Certain of the Company’s product performance obligations include proprietary operating system software, which typically is not considered separately identifiable. Therefore, sales of these products and the related software are considered one performance obligation. | ||
Product warranty term | These product warranties extend over various periods, depending on the product subject to the warranty and the terms of the individual agreements. | ||
Advertising expense | $ 39.4 | $ 35.8 | $ 45.9 |
Foreign currency translation losses | $ (4.1) | $ (4.4) | $ (19.2) |
Stock Compensation Plan [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Amount of outstanding equity based awards not included in computation of diluted earnings per share | 11.3 | 12.2 | 17,400,000 |
Dilutive effect of equity-based awards | 2.9 | 4.9 | 4.4 |
Stock Compensation Plan [Member] | Convertible Preferred Stock [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Dilutive effect of equity-based awards | 39.1 | 37.9 | 37.1 |
Foreign Currency Translation [Member] | Customers Located Outside of the U.S [Member] | Sales Revenue, Net [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Concentration risk percentage | 38% | 42% | 39% |
Minimum [Member] | Product Contracts [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Percentage of revenue from product sales | 90% | ||
Buildings and Improvements [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful lives of the assets | 10 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful lives of the assets | 35 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful lives of the assets | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful lives of the assets | 10 years | ||
Trade Accounts Receivable [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Sale of trade accounts receivable | $ 339 | $ 45 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Earnings, Weighted Average Common Shares and Potential Common Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net loss | $ (1,286.9) | $ (462.6) | $ (573.4) |
Dividends on Series A convertible preferred stock | (59) | (57.3) | (56.1) |
Net loss attributable to common stockholders | $ (1,345.9) | $ (519.9) | $ (629.5) |
Denominator: | |||
Weighted average common shares outstanding - basic | 207.4 | 203.6 | 196.8 |
Weighted average common shares outstanding - diluted | 207.4 | 203.6 | 196.8 |
Earnings (loss) per share: | |||
Basic | $ (6.49) | $ (2.55) | $ (3.20) |
Diluted | $ (6.49) | $ (2.55) | $ (3.20) |
Acquisition - Summary of Estima
Acquisition - Summary of Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Goodwill | $ 4,072.4 | $ 5,231.7 | $ 5,286.5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Details of Intangible Assets Other Than Goodwill (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,579.8 | $ 6,614.7 |
Accumulated Amortization | 4,106.3 | 3,587.4 |
Net Carrying Amount | 2,473.5 | 3,027.3 |
Customer Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,486.5 | 3,508.4 |
Accumulated Amortization | 1,941.5 | 1,779.3 |
Net Carrying Amount | 1,545 | 1,729.1 |
Trade Names and Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,020.6 | 1,022.3 |
Accumulated Amortization | 502.9 | 439.8 |
Net Carrying Amount | 517.7 | 582.5 |
Patents and Technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,014.4 | 2,025.7 |
Accumulated Amortization | 1,603.6 | 1,310 |
Net Carrying Amount | 410.8 | 715.7 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 58.3 | 58.3 |
Accumulated Amortization | 58.3 | 58.3 |
Net Carrying Amount | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Other Intangible Assets [Line Items] | |||||
Pretax impairment charges | $ 0 | $ 0 | $ 0 | ||
Amortization expense for intangible assets | 543,000,000 | 613,000,000 | 630,500,000 | ||
Impairment of Goodwill | 1,119,600,000 | 13,700,000 | |||
Goodwill | 4,072,400,000 | 5,231,700,000 | 5,286,500,000 | ||
Goodwill Impairment Charges | 1,119,600,000 | 13,700,000 | |||
Home [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Impairment of Goodwill | $ 206,700,000 | 13,700,000 | (13,700,000) | ||
Goodwill | 0 | 0 | 0 | ||
Goodwill Impairment Charges | $ 206,700,000 | 13,700,000 | (13,700,000) | ||
N&C [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Goodwill transfer | $ 13,700,000 | ||||
A N S [Member] | |||||
Goodwill and Other Intangible Assets [Line Items] | |||||
Impairment of Goodwill | 1,119,600,000 | 0 | |||
Goodwill | 734,000,000 | 1,857,000,000 | $ 1,886,500,000 | ||
Goodwill Impairment Charges | $ 1,119,600,000 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense for Next Five Years (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 429.8 |
2024 | 342.7 |
2025 | 277.8 |
2026 | 229.1 |
2027 | 199.1 |
Thereafter | $ 995 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Goodwill by Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||||
Goodwill, gross, Beginning balance | $ 5,999.5 | $ 6,039.2 | $ 6,080.3 | |
Accumulated impairment losses | (1,927.1) | (807.5) | (793.8) | |
Goodwill, net | 4,072.4 | 5,231.7 | 5,286.5 | |
Additions (deductions) | 0 | |||
Impairment | (1,119.6) | (13.7) | ||
Goodwill Foreign Exchange And Other | 39.7 | (41.1) | ||
Goodwill, gross, Ending balance | 5,999.5 | 6,039.2 | ||
Accumulated impairment losses | (1,927.1) | (807.5) | ||
Goodwill, net | 4,072.4 | 5,231.7 | ||
C C S [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, gross, Beginning balance | 2,280.9 | 2,307.3 | 2,323.8 | |
Accumulated impairment losses | (51.5) | (51.5) | (51.5) | |
Goodwill, net | 2,229.4 | 2,255.8 | 2,272.3 | |
Impairment | 0 | |||
Goodwill Foreign Exchange And Other | 26.4 | 16.5 | ||
Goodwill, gross, Ending balance | 2,280.9 | 2,307.3 | ||
Accumulated impairment losses | (51.5) | (51.5) | ||
Goodwill, net | 2,229.4 | 2,255.8 | ||
N I C S [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, gross, Beginning balance | 649.4 | 653 | 657.8 | |
Accumulated impairment losses | (41.2) | (41.2) | (41.2) | |
Goodwill, net | 608.2 | 611.8 | 616.6 | |
Impairment | 0 | |||
Goodwill Foreign Exchange And Other | (3.6) | (4.8) | ||
Goodwill, gross, Ending balance | 649.4 | 653 | ||
Accumulated impairment losses | (41.2) | (41.2) | ||
Goodwill, net | 608.2 | 611.8 | ||
A N S [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, gross, Beginning balance | 1,995.7 | 1,999.1 | 2,028.6 | |
Accumulated impairment losses | (1,261.7) | (142.1) | (142.1) | |
Goodwill, net | 734 | 1,857 | 1,886.5 | |
Additions (deductions) | (13.7) | |||
Impairment | (1,119.6) | 0 | ||
Goodwill Foreign Exchange And Other | (3.4) | (15.8) | ||
Goodwill, gross, Ending balance | 1,995.7 | 1,999.1 | ||
Accumulated impairment losses | (1,261.7) | (142.1) | ||
Goodwill, net | 734 | 1,857 | ||
Home [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, gross, Beginning balance | 413.2 | 413.2 | 399.5 | |
Accumulated impairment losses | (413.2) | (413.2) | (399.5) | |
Goodwill, net | 0 | 0 | 0 | |
Additions (deductions) | 13.7 | |||
Impairment | $ (206.7) | (13.7) | 13.7 | |
Goodwill Foreign Exchange And Other | 0 | 0 | ||
Goodwill, gross, Ending balance | 413.2 | 413.2 | ||
Accumulated impairment losses | (413.2) | (413.2) | ||
Goodwill, net | 0 | 0 | ||
OWN [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, gross, Beginning balance | 660.3 | 666.6 | 670.6 | |
Accumulated impairment losses | (159.5) | (159.5) | (159.5) | |
Goodwill, net | 500.8 | 507.1 | $ 511.1 | |
Impairment | 0 | |||
Goodwill Foreign Exchange And Other | (6.3) | (4) | ||
Goodwill, gross, Ending balance | 660.3 | 666.6 | ||
Accumulated impairment losses | (159.5) | (159.5) | ||
Goodwill, net | $ 500.8 | $ 507.1 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Abstract] | |||
Allowance for doubtful accounts, beginning of period | $ 63.7 | $ 40.3 | $ 35.4 |
Provision | 22.6 | 25.8 | 5 |
Write-offs | (2.1) | (0.9) | (3.2) |
Foreign exchange and other | (1.4) | (1.5) | 3.1 |
Allowance for doubtful accounts, end of period | $ 82.8 | $ 63.7 | $ 40.3 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Summary of the Balance Sheet Location and Amounts of Contract Assets and Liabilities from Contracts with Customers (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - current | $ 97.9 | $ 94.6 |
Total contract liabilities | 161.3 | 155.7 |
Accounts Receivable, Less Allowance for Doubtful Accounts [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Unbilled accounts receivable | 35.3 | 35 |
Accrued and Other Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - current | 97.9 | 94.6 |
Other Noncurrent Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue - noncurrent | $ 63.4 | $ 61.1 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Contract with customer liability revenue recognized | $ 88.3 | |
Significant Customer [Member] | OWN Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Allowance for reserve | $ 20.9 | |
Selling, General and Administrative [Member] | Significant Customer [Member] | Home Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Allowance for reserve | $ 30.3 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Finance Type Leases, Amount | $ 0 | $ 0 | |
Operating lease, option to extend | true | ||
Operating lease, option to terminate | true | ||
Operating lease expense | 97.6 | $ 102.1 | $ 105.2 |
Cost for short-term, cancellable and variable leases | $ 36.2 | $ 33.2 | $ 31.3 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash paid to settle lease liabilities | $ 59.4 | $ 71.5 | $ 74.6 |
Right of use asset additions in exchange for lease liabilities | $ 43.5 | $ 25.3 | $ 21.9 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Fair Value of Assets (Liability), Right of use assets | $ 149 | $ 162.5 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Fair Value of Assets (Liability), Total lease liabilities | $ 47.7 | $ 46.7 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and other liabilities | Accrued and other liabilities |
Fair Value of Assets (Liability), Total lease liabilities | $ 123.5 | $ 140.8 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | Other noncurrent liabilities |
Fair Value of Assets (Liability), Total lease liabilities | $ 171.2 | $ 187.5 |
Weighted average remaining lease term (in years) | 5 years 3 months 18 days | |
Weighted average discount rate | 8.80% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Leases, 2023 | $ 57.2 | |
Operating Leases, 2024 | 45 | |
Operating Leases, 2025 | 31.8 | |
Operating Leases, 2026 | 24.4 | |
Operating Leases, 2027 | 15 | |
Operating Leases, Thereafter | 47.9 | |
Operating Leases, Total minimum lease payments | 221.3 | |
Less: imputed interest | (50.1) | |
Operating Leases, Total | $ 171.2 | $ 187.5 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Accounts Receivable (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (82.8) | $ (63.7) |
Total accounts receivable, net | 1,523.6 | 1,532.6 |
Accounts Receivable Trade [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 1,545.3 | 1,499.9 |
Accounts Receivable Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 61.1 | $ 96.4 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 535.8 | $ 436 |
Work in process | 212.7 | 178.3 |
Finished goods | 839.6 | 821.5 |
Total inventories, net | $ 1,588.1 | $ 1,435.8 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 1,483.1 | $ 1,443.7 |
Accumulated depreciation | (873.5) | (787.4) |
Property, Plant and Equipment, net | 609.6 | 656.3 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 52.2 | 54.1 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 340.9 | 334.4 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, gross | 1,038.1 | 968 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, gross | $ 51.9 | $ 87.2 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Income Statement Elements [Abstract] | |||
Depreciation expense | $ 127,200,000 | $ 136,700,000 | $ 158,300,000 |
Interest capitalized | $ 0 | $ 0 | $ 0 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information - Accrued and Other Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Compensation and employee benefit liabilities | $ 301.3 | $ 304.7 |
Accrued interest | 118.1 | 118.3 |
Deferred revenue | 97.9 | 94.6 |
Contract manufacturer inventory repurchase obligation | 79.1 | 14.5 |
Restructuring liabilities | 58.9 | 41 |
Operating lease liabilities | 47.7 | 46.7 |
Product warranty accrual | 44.8 | 54 |
Other | 302.2 | 316 |
Total accrued and other liabilities | $ 1,050 | $ 989.8 |
Supplemental Financial Statem_8
Supplemental Financial Statement Information - Changes in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (156.6) | $ 355 |
Ending balance | (1,546) | (156.6) |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (165.8) | (80.5) |
Other comprehensive income (loss) | (104.3) | (86.4) |
Amounts reclassified from AOCL | 0.2 | 1.1 |
Ending balance | (270.3) | (165.8) |
Defined Benefit Plan Activity [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (13.4) | (36.4) |
Other comprehensive income (loss) | (1.4) | 24.1 |
Amounts reclassified from AOCL | (1.1) | |
Ending balance | (14.8) | (13.4) |
Hedging Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (27.2) | (39) |
Other comprehensive income (loss) | 16 | 11.8 |
Ending balance | (11.2) | (27.2) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (206.4) | (155.9) |
Ending balance | $ (296.3) | $ (206.4) |
Supplemental Financial Statem_9
Supplemental Financial Statement Information - Cash Flow Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid during the period for: | |||
Income taxes, net of refunds | $ 130.7 | $ 79.4 | $ 94.4 |
Interest | $ 563.2 | $ 525.9 | $ 520.9 |
Financing - Summary of Debt (De
Financing - Summary of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total principal amount of debt | $ 9,596 | $ 9,628 |
Less: Original issue discount, net of amortization | (15.9) | (20.3) |
Less: Debt issuance costs, net of amortization | (78.5) | (97.2) |
Less: Current portion | (32) | (32) |
Total long-term debt | 9,469.6 | 9,478.5 |
7.125% Senior Notes Due July 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 700 | 700 |
5.00 Senior Notes Due March 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 750 | 750 |
8.25% Senior Notes Due March 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,000 | 1,000 |
6.00% Senior Notes Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,300 | 1,300 |
4.75% senior secured notes due September 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured notes | 1,250 | 1,250 |
6.00% Senior Secured Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured notes | 1,500 | 1,500 |
Senior Secured Term Loan Due April 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured notes | 3,096 | 3,128 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured revolving credit facility | 0 | |
Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured revolving credit facility | $ 0 | $ 0 |
Financing - Summary of Debt (Pa
Financing - Summary of Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
7.125% Senior Notes Due July 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2028-07 | |
Interest rate | 7.125% | 7.125% |
5.00 Senior Notes Due March 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2027-03 | |
Interest rate | 5% | 5% |
8.25% Senior Notes Due March 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2027-03 | |
Interest rate | 8.25% | 8.25% |
6.00% Senior Notes Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2025-06 | |
Interest rate | 6% | 6% |
4.75% senior secured notes due September 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2029-09 | |
Interest rate | 4.75% | 4.75% |
6.00% Senior Secured Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2026-03 | |
Interest rate | 6% | 6% |
Senior Secured Term Loan Due April 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity month and year | 2026-04 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Apr. 04, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Excess cash flow percentage | 50% | |||
Current portion of long term debt | $ 32,000,000 | $ 32,000,000 | ||
Total assets | 11,685,400,000 | 13,259,500,000 | ||
Total liabilities | 12,131,100,000 | 12,360,000,000 | ||
Net sales | $ 9,228,100,000 | $ 8,586,700,000 | $ 8,435,900,000 | |
Weighted average effective interest rate | 6.91% | 5.74% | ||
Non Guarantor Subsidiaries Concentration Risk [Member] | ||||
Debt Instrument [Line Items] | ||||
Total assets | $ 3,664,000,000 | |||
Total liabilities | 1,029,000,000 | |||
Net sales | $ 2,708,000,000 | |||
Assets, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | Non Us Member | ||||
Debt Instrument [Line Items] | ||||
Concentration risk percentage | 31% | |||
Liabilities, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | Non Us Member | ||||
Debt Instrument [Line Items] | ||||
Concentration risk percentage | 8% | |||
Sales Revenue, Net [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | Non Us Member | ||||
Debt Instrument [Line Items] | ||||
Concentration risk percentage | 29% | |||
Eurodollar [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
Eurodollar [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.25% | |||
LIBOR floor Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
LIBOR floor Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.25% | |||
Senior Secured Term Loan Due April 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Scheduled amortization payments | $ 32,000,000 | |||
Current portion of long term debt | $ 0 | |||
7.125% Senior Notes Due July 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.125% | 7.125% | ||
Maturity month and year | 2028-07 | |||
7.125% Senior Notes Due July 2028 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.125% | |||
Maturity date | Jul. 01, 2028 | |||
Debt Instrument, Maturity Date | Jul. 01, 2028 | |||
4.75% Senior Secured Notes Due September 2029 [Member] | Senior Notes [Member] | Redemption Under Certain Circumstances | ||||
Debt Instrument [Line Items] | ||||
Redemption date, period end date | Sep. 01, 2024 | |||
4.75% Senior Secured Notes Due September 2029 [Member] | Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.75% | |||
4.75% Senior Secured Notes Due September 2029 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 100% | |||
4.75% Senior Secured Notes Due September 2029 [Member] | Senior Secured Notes [Member] | Redemption Under Certain Circumstances | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 107.125% | |||
Redemption date, period end date | Jul. 01, 2023 | |||
Percentage of principal amount of debt redeemed | 40% | |||
4.75% Senior Secured Notes Due September 2029 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 103% | |||
Redemption date, period end date | Sep. 01, 2024 | |||
Percentage of principal amount of debt redeemed | 10% | |||
4.75% Senior Secured Notes Due September 2029 [Member] | Senior Secured Notes [Member] | Option of the Holders [Member] | Redemption Upon Certain Change of Control Events [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 101% | |||
Senior Secured Notes September 1, 2029 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.75% | |||
Senior secured notes | $ 1,250,000,000 | |||
Maturity date | Sep. 01, 2029 | |||
Debt Instrument, Maturity Date | Sep. 01, 2029 | |||
Senior Secured Notes Due September 1 2024 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption date, period end date | Sep. 01, 2024 | |||
5.00 Senior Notes Due March 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5% | 5% | ||
Maturity month and year | 2027-03 | |||
5.50% Senior Secured Notes Due March 2024 [Member] | Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Sep. 01, 2029 | |||
Debt Instrument, Maturity Date | Sep. 01, 2029 | |||
6.00% Senior Notes Due June 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 1,300,000,000 | $ 1,300,000,000 | ||
Interest rate | 6% | 6% | ||
Maturity month and year | 2025-06 | |||
6.00% Senior Notes Due June 2025 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 1,300,000,000 | |||
Interest rate | 6% | |||
Issuance period | 2015-06 | |||
Maturity date | Jun. 15, 2025 | |||
Debt Instrument, Maturity Date | Jun. 15, 2025 | |||
8.25% Senior Notes Due March 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 1,000,000,000 | $ 1,000,000,000 | ||
Interest rate | 8.25% | 8.25% | ||
Maturity month and year | 2027-03 | |||
8.25% Senior Notes Due March 2027 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 1,000,000,000 | |||
Interest rate | 8.25% | |||
Issuance period | 2019-02 | |||
Maturity date | Mar. 01, 2027 | |||
Debt Instrument, Maturity Date | Mar. 01, 2027 | |||
8.25% Senior Notes Due March 2027 [Member] | Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Jul. 01, 2028 | |||
Debt Instrument, Maturity Date | Jul. 01, 2028 | |||
8.25% Senior Notes Due March 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Mar. 01, 2027 | |||
Debt Instrument, Maturity Date | Mar. 01, 2027 | |||
6.00% Senior Secured Notes Due March 2026 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured notes | $ 1,500,000,000 | |||
6.00% Senior Secured Notes Due March 2026 [Member] | Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6% | |||
Maturity date | Mar. 01, 2026 | |||
Debt Instrument, Maturity Date | Mar. 01, 2026 | |||
6.00% Senior Secured Notes Due March 2026 [Member] | Senior Secured Notes [Member] | Redemption Under Certain Circumstances | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 104.75% | |||
Percentage of principal amount of debt redeemed | 40% | |||
7.125% Senior Notes Due July 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 700,000,000 | $ 700,000,000 | ||
7.125% Senior Notes Due July 2028 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 700,000,000 | |||
Interest rate | 6% | |||
Issuance period | 2017-03 | |||
Maturity date | Mar. 01, 2026 | |||
Debt Instrument, Maturity Date | Mar. 01, 2026 | |||
7.125% Senior Notes Due July 2028 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 100% | |||
7.125% Senior Notes Due July 2028 [Member] | Senior Notes [Member] | Option of the Holders [Member] | Redemption Upon Certain Change of Control Events [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 101% | |||
6.00% Senior Notes Due June 2025 | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Jun. 15, 2025 | |||
Debt Instrument, Maturity Date | Jun. 15, 2025 | |||
5.00% Senior Notes Due March 2027 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 750,000,000 | |||
Interest rate | 5% | |||
Maturity date | Mar. 15, 2027 | |||
Debt Instrument, Maturity Date | Mar. 15, 2027 | |||
5.00% Senior Notes Due March 2027 [Member] | Senior Notes [Member] | Option of the Holders [Member] | Redemption Upon Certain Change of Control Events [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 101% | |||
Senior Secured Term Loan Due April 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity month and year | 2026-04 | |||
Senior secured notes | $ 3,096,000,000 | $ 3,128,000,000 | ||
Debt instrument, variable rate basis | the interest rate was, at the Company’s option, either (1) the base rate (which is the highest of (w) the greater of the then-current federal funds rate set by the Federal Reserve Bank of New York and the overnight federal funds rate, in each case, plus 0.5%, (x) the prime rate on such day, (y) the one-month Eurodollar rate published on such date plus 1.00% and (z) 1.00% per annum) plus an applicable margin of 2.25% or (2) one-, two-, three- or six-month LIBOR or, if available from all lenders, 12-month LIBOR or any shorter period (selected at the option of CommScope, Inc.) plus an applicable margin of 3.25%. For the year ended December 31, 2022, the 2026 Term Loan was subject to a LIBOR floor of 0.00%. | |||
Scheduled amortization payments per year | $ 32,000,000 | |||
Senior secured term loan, frequency of payments | quarterly | |||
Senior secured term loan, maturity date | 2026-04 | |||
Incremental borrowings maximum term loan facility on principal amount | $ 950,000,000 | |||
Incremental borrowings criteria percentage of consolidated EBITDA | 50% | |||
Senior Secured Term Loan Due April 2026 [Member] | Federal Reserve Bank of New York and Federal Funds Rate, Plus Base Rate [Member] | Interest Rate on Term Loan, Scenario Plan One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Senior Secured Term Loan Due April 2026 [Member] | Eurodollar Rate, Plus Base Rate [Member] | Interest Rate on Term Loan, Scenario Plan One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1% | |||
Senior Secured Term Loan Due April 2026 [Member] | Percentage per Annum, Base Rate [Member] | Interest Rate on Term Loan, Scenario Plan One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1% | |||
Senior Secured Term Loan Due April 2026 [Member] | 1.00% per Annum, Plus Base Rate [Member] | Interest Rate on Term Loan, Scenario Plan One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
Senior Secured Term Loan Due April 2026 [Member] | LIBOR, Plus Base Rate [Member] | Interest Rate on Term Loan, Scenario Plan Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 3.25% | |||
Senior Secured Term Loan Due April 2026 [Member] | LIBOR floor Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0% | |||
Asset Based Revolving Credit Facility [Member] | Standby Letters of Credit [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Asset-based revolving credit facility maximum borrowing capacity | $ 400,000,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Asset-based revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | |||
Asset-based revolving credit facility, maturity month and year | 2024-04 | |||
Senior secured revolving credit facility | $ 0 | |||
Asset-based revolving credit facility available borrowing capacity | 908,800,000 | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Asset-based revolving credit facility available borrowing capacity | 80,000,000 | |||
Revolving Credit Facility [Member] | Standby Letters of Credit [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured revolving credit facility | $ 250,000,000 | |||
Revolving credit facility, description | The following fees are applicable under the Revolving Credit Facility: (i) an unused line fee of (x) 0.25% per annum of the unused portion of the Revolving Credit Facility when the average unused portion of the facility is less than 50% of the aggregate commitments under the Revolving Credit Facility or (y) 0.375% per annum of the unused portion of the Revolving Credit Facility when the average unused portion of the facility is equal to or greater than 50% of the aggregate commitments under the Revolving Credit Facility; (ii) a letter of credit participation fee on the aggregate stated amount of each letter of credit equal to the applicable margin for adjusted Term SOFR, EURIBOR, SONIA and SARON loans, as applicable; (iii) a letter of credit fronting fee of 0.125% per annum, multiplied by the average aggregate daily maximum amount available to be drawn under all applicable letters of credit issued by such letter of credit issuer; and (iv) certain other customary fees and expenses of the lenders and agents thereunder | |||
Revolving credit facility unused capacity commitment fee when average unused portion is less than 50% percentage | 0.25% | |||
Revolving credit facility unused capacity commitment fee when average unused portion is equal to or greater than 50% percentage | 0.375% | |||
Letter of credit fronting fee | 0.125% | |||
Revolving credit facility, covenant, description | The Revolving Credit Facility contains a Covenant Fixed Charge Coverage Ratio (as defined in the credit agreement governing the Revolving Credit Facility) of 1.00 to 1.00. The credit agreement governing the Revolving Credit Facility provides that the Covenant Fixed Charge Coverage Ratio must be tested and must exceed the level set forth above only in the event that excess availability under the Revolving Credit Facility is less than the greater of $80 million and 10% of the maximum credit as of the end of the most recent fiscal quarter. | |||
Credit agreement covenant fixed charge coverage ratio | 100% | |||
Debt covenant fixed charge coverage ratio, triggering event, minimum percentage on borrowings base | 10% | |||
Tranche A [Member] | ||||
Debt Instrument [Line Items] | ||||
Line Of Credit Facility Fair Value Of Amount Outstanding | $ 1,000,000 | |||
Tranche B [Member] | ||||
Debt Instrument [Line Items] | ||||
Line Of Credit Facility Fair Value Of Amount Outstanding | $ 1,000,000 |
Financing - Scheduled Maturitie
Financing - Scheduled Maturities of Long- Term Debt (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |
2023 | $ 32 |
2024 | 32 |
2025 | 1,332 |
2026 | 4,500 |
2027 | 1,750 |
Thereafter | $ 1,950 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Not Designated as Hedging Instrument [Member] | Foreign Currency Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 522.2 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Contracts [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Maturities ranging | 8 months |
Derivative Instruments Designated as Hedging Instrument [Member] | Interest Rate Swap Contracts [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 300 |
Derivative Instruments Designated as Hedging Instrument [Member] | Interest Rate Swap Contracts [Member] | Maximum [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | |
Derivatives, Fair Value [Line Items] | |
Maturities ranging | 15 months |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Balance Sheet Location and Fair Value of the Company's Derivatives (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ 3.4 | $ 4.9 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | 9.9 | 5.7 |
Not Designated as Hedging Instrument [Member] | Accrued and Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | (6.5) | (0.8) |
Derivative Instruments Designated as Hedging Instrument [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | 8.6 | (11.8) |
Derivative Instruments Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap contracts | 0 | (10.3) |
Derivative Instruments Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap contracts | (8.6) | 0 |
Derivative Instruments Designated as Hedging Instrument [Member] | Accrued and Other Liabilities [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap contracts | $ 0 | $ (1.5) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Pretax Impact of Foreign Currency Forward Contracts, Both Matured and Outstanding, not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Expense, Net [Member] | Foreign Currency Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other expense, net | $ (19) | $ (2.6) | $ 24.9 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Impact of Effective Portion of Interest Rate Swap Contracts, Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Member] | Interest Rate Swap Contracts [Member] | Derivative Instruments Designated as Hedging Instrument [Member] | Cash Flow Hedges of Interest Rate Risk [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other comprehensive income (loss), net of tax | $ 16 | $ 14.4 | $ (10.2) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Debt Instruments, Interest Rate Derivatives and Foreign Currency Contracts (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | $ 6.5 | $ 0.8 |
Interest rate swap contracts | 0 | 11.8 |
Carrying Amount [Member] | Assets [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 9.9 | 5.7 |
Interest rate swap contracts | 8.6 | 0 |
Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 6.5 | 0.8 |
Interest rate swap contracts | 0 | 11.8 |
Fair Value [Member] | Assets [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 9.9 | 5.7 |
Interest rate swap contracts | 8.6 | 0 |
7.125% Senior Notes Due 2028 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 700 | 700 |
7.125% Senior Notes Due 2028 [Member] | Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 502.6 | 690.4 |
5.00% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 750 | 750 |
5.00% Senior Notes Due 2027 [Member] | Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 513.4 | 705 |
8.25% Senior Notes Due 2027 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,000 |
8.25% Senior Notes Due 2027 [Member] | Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 780.8 | 1,023.8 |
6.00% Senior Notes Due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,300 | 1,300 |
6.00% Senior Notes Due 2025 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,300 | 1,300 |
6.00% Senior Notes Due 2025 [Member] | Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,183.4 | 1,300 |
4.75% senior secured notes due 2029 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,250 | 1,250 |
4.75% senior secured notes due 2029 [Member] | Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,240.3 |
6.00% Senior Secured Notes Due 2026 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 1,500 | 1,500 |
6.00% Senior Secured Notes Due 2026 [Member] | Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,383.3 | 1,554.4 |
Senior Secured Term Loans Due 2026 [Member] | Carrying Amount [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured notes | 3,096 | 3,128 |
Senior Secured Term Loans Due 2026 [Member] | Fair Value [Member] | Level 2 [Member] | Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 2,925.7 | $ 3,092.8 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment of Goodwill | $ 1,119.6 | $ 13.7 | |
Discounted cash flow [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Valuation technique | 75% | ||
Market approach [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Valuation technique | 25% | ||
Non-Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment of Goodwill | $ 206.7 | $ 1,119.6 | $ 13.7 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Company's Net Pretax Restructuring Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | $ 62.9 | $ 91.9 | $ 88.4 |
C C S [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 17.1 | 62 | 25.9 |
OWN [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 22.4 | 3.6 | 15.7 |
N I C S [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 9.9 | 8.5 | 8 |
A N S [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | 12.2 | 9.2 | 8.8 |
Home [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | $ 1.3 | $ 8.6 | $ 30 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Reserves Included in Company's Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | $ 58.9 | $ 41 |
Total restructuring liabilities | 59.4 | 69.2 |
Accrued and Other Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities | 58.9 | 41 |
Other Noncurrent Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, non-current | $ 0.5 | $ 28.2 |
Restructuring Costs - Activity
Restructuring Costs - Activity within Liability Established for Restructuring Actions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ 69.2 | ||
Additional expense, net | 62.9 | $ 91.9 | $ 88.4 |
Ending balance | 59.4 | 69.2 | |
CommScope NEXT Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 60.6 | 0 | |
Additional expense, net | 59.3 | 90.7 | |
Cash Paid | (49.4) | (26.6) | |
Foreign exchange and other non-cash items | (11.8) | (3.5) | |
Ending balance | 58.7 | 60.6 | 0 |
Employee-Related Costs [Member] | CommScope NEXT Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 60.6 | 0 | |
Additional expense, net | 50.7 | 86.7 | |
Cash Paid | (48.9) | (26.6) | |
Foreign exchange and other non-cash items | (3.7) | 0.5 | |
Ending balance | 58.7 | 60.6 | 0 |
Other Costs [Member] | CommScope NEXT Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 0 | 0 | |
Additional expense, net | 8.6 | 4 | |
Cash Paid | (0.5) | 0 | |
Foreign exchange and other non-cash items | (8.1) | (4) | |
Ending balance | $ 0 | $ 0 | $ 0 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) - CommScope NEXT [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Recognized restructuring charges | $ 150 |
2023 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected cash payments | 58.2 |
2024 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected cash payments | $ 0.5 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company recognized pretax costs | $ 2,700,000 | $ 1,300,000 | $ 2,600,000 |
Accrued liability, included in other noncurrent liabilities | 22,500,000 | 31,300,000 | |
Pension Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage required for corridor approach | 10% | ||
Pension Benefit Plan [Member] | U.S.Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's defined benefit pension plans | 9,400,000 | 12,500,000 | |
Defined benefit pension plan assets | 0 | 0 | |
Company expects to contribute to defined benefit pension plans | 900,000 | ||
Pension and other postretirement benefit liabilities | 8,500,000 | 11,800,000 | |
Pretax gains recognized in accumulated other comprehensive loss | 1,000,000 | (1,700,000) | |
Net periodic benefit cost | 400,000 | 400,000 | $ 400,000 |
Pension Benefit Plan [Member] | Non-U.S.Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's defined benefit pension plans | 159,900,000 | 233,200,000 | |
Curtailment gain | 2,500,000 | ||
Defined benefit pension plan assets | 181,200,000 | 279,400,000 | 279,100,000 |
Company expects to contribute to defined benefit pension plans | 4,200,000 | ||
Pension and other postretirement benefit liabilities | 15,300,000 | 22,000,000 | |
Pretax gains recognized in accumulated other comprehensive loss | (16,500,000) | (13,700,000) | |
Net periodic benefit cost | 6,200,000 | 2,900,000 | 4,100,000 |
CommScope, Inc. Retirement Savings Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's contribution to defined contribution retirement savings plans | $ 51,200,000 | $ 50,400,000 | $ 56,600,000 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Defined Benefit Pension Plan (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Pension Benefits [Member] | U.S.Plans [Member] | |||
Change in benefit obligation: | |||
Benefit obligation, beginning | $ 12,500,000 | $ 13,500,000 | |
Interest cost | 300,000 | 300,000 | $ 300,000 |
Actuarial gain | (2,600,000) | (500,000) | |
Benefits paid | (800,000) | (800,000) | |
Benefit obligation, ending | 9,400,000 | 12,500,000 | 13,500,000 |
Change in plan assets: | |||
Fair value of plan assets, beginning | 0 | ||
Employer and plan participant contributions | 800,000 | 800,000 | |
Benefits paid | (800,000) | (800,000) | |
Fair value of plan assets, ending | 0 | 0 | |
Funded status, net liability (asset) | 9,400,000 | 12,500,000 | |
Pension Benefits [Member] | Non-U.S.Plans [Member] | |||
Change in benefit obligation: | |||
Benefit obligation, beginning | 275,500,000 | 310,500,000 | |
Service cost | 5,700,000 | 6,800,000 | 4,300,000 |
Interest cost | 3,700,000 | 3,100,000 | 4,000,000 |
Actuarial gain | (68,700,000) | (20,600,000) | |
Benefits paid | (4,500,000) | (5,500,000) | |
Settlements | (6,200,000) | (3,900,000) | |
Curtailment | (4,000,000) | ||
Foreign exchange and other | (22,200,000) | (10,900,000) | |
Benefit obligation, ending | 183,300,000 | 275,500,000 | 310,500,000 |
Change in plan assets: | |||
Fair value of plan assets, beginning | 279,400,000 | 279,100,000 | |
Employer and plan participant contributions | 6,400,000 | 7,500,000 | |
Return on plan assets | (69,900,000) | 11,800,000 | |
Benefits paid | (4,500,000) | (5,500,000) | |
Settlements | (6,200,000) | (3,900,000) | |
Foreign exchange and other | (24,000,000) | (9,600,000) | |
Fair value of plan assets, ending | 181,200,000 | 279,400,000 | $ 279,100,000 |
Funded status, net liability (asset) | $ 2,100,000 | $ (3,900,000) |
Employee Benefit Plans - Balanc
Employee Benefit Plans - Balance Sheet Location of Pension Liabilities and Assets (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued and other liabilities | $ (0.9) | $ (0.7) |
Other noncurrent liabilities | (8.5) | (11.8) |
Non-U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued and other liabilities | (0.7) | (0.4) |
Other noncurrent liabilities | (15.3) | (22) |
Other noncurrent assets | $ 13.9 | $ 26.3 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Company's Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 9.4 | $ 12.5 |
Accumulated benefit obligation | 9.4 | 12.5 |
Non-U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 44.1 | 48.8 |
Accumulated benefit obligation | 41.3 | 45.9 |
Fair value of plan assets | $ 28.4 | $ 27.4 |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Pretax Amounts Included in Accumulated Other Comprehensive Loss (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial loss | $ 1 | $ (1.7) |
Total | 1 | (1.7) |
Non-U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial loss | (16.5) | (13.6) |
Unrecognized prior service cost | (0.1) | |
Total | $ (16.5) | $ (13.7) |
Employee Benefit Plans - Pretax
Employee Benefit Plans - Pretax Amounts for Net Periodic Benefit Cost and Other Amounts Included in Other Comprehensive Income (Loss) for the Defined Benefit Pension and Other Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
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) |
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) |
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) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Pension Benefits [Member] | U.S.Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 0.3 | $ 0.3 | $ 0.3 |
Recognized actuarial loss | 0.1 | 0.1 | 0.1 |
Net periodic benefit cost | 0.4 | 0.4 | 0.4 |
Changes in plan assets and benefit obligations included in other comprehensive income (loss): | |||
Change in unrecognized net actuarial loss (gain) | (2.7) | (0.6) | 1 |
Total included in other comprehensive income (loss) | (2.7) | (0.6) | 1 |
Total recognized in net periodic benefit cost and included in other comprehensive income (loss) | (2.3) | (0.2) | 1.4 |
Pension Benefits [Member] | Non-U.S.Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5.7 | 6.8 | 4.3 |
Interest cost | 3.7 | 3.1 | 4 |
Recognized actuarial loss | 0.1 | 1.6 | 1.3 |
Expected return on plan assets | (4.9) | (6.4) | (7) |
Settlement loss | 1.6 | 0.3 | 1.5 |
Curtailment gain | (2.5) | ||
Net periodic benefit cost | 6.2 | 2.9 | 4.1 |
Changes in plan assets and benefit obligations included in other comprehensive income (loss): | |||
Change in unrecognized net actuarial loss (gain) | 2.9 | (28) | 13.4 |
Change in unrecognized prior service cost | (0.1) | (0.4) | (0.2) |
Curtailment and settlements | (1.8) | (1.5) | |
Total included in other comprehensive income (loss) | 2.8 | (30.2) | 11.7 |
Total recognized in net periodic benefit cost and included in other comprehensive income (loss) | $ 9 | $ (27.3) | $ 15.8 |
Employee Benefit Plans - Signif
Employee Benefit Plans - Significant Weighted Average Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Cost (Detail) - Pension Benefits [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S.Plans [Member] | |||
Benefit obligations: | |||
Discount rate | 4.99% | 2.55% | 2.07% |
Net periodic benefit cost: | |||
Discount rate | 2.55% | 2.07% | 2.95% |
Non-U.S.Plans [Member] | |||
Benefit obligations: | |||
Discount rate | 4.37% | 1.47% | 1.02% |
Rate of compensation increase | 3.36% | 3.79% | 3.59% |
Net periodic benefit cost: | |||
Discount rate | 1.47% | 1.02% | 1.65% |
Rate of return on plan assets | 4.03% | 1.96% | 2.33% |
Rate of compensation increase | 3.79% | 3.59% | 3.74% |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary of the Company's Plan Assets for Estimated Fair Values and the Valuation Input Levels (Detail) - Pension Benefits [Member] - Non-U.S.Plans [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | $ 181.2 | $ 279.4 | $ 279.1 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 64.2 | 82.6 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 117 | 196.8 | |
International Equity [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 19.7 | 25.6 | |
International Equity [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 7.7 | 32.2 | |
International Debt [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 36.8 | 47.4 | |
International Debt [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 76 | 126.5 | |
Absolute Return [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 3.8 | 9.5 | |
Other [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | 7.7 | 9.6 | |
Other [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated fair value of plan assets | $ 29.5 | $ 28.6 |
Employee Benefit Plans - Summ_5
Employee Benefit Plans - Summarizes Projected Benefit Payments from Pension (Detail) - Pension Benefits [Member] $ in Millions | Dec. 31, 2022 USD ($) |
U.S.Plans [Member] | |
Schedule Of Pension And Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
2023 | $ 0.9 |
2024 | 0.9 |
2025 | 0.9 |
2026 | 0.9 |
2027 | 0.8 |
2028-2032 | 3.7 |
Non-U.S.Plans [Member] | |
Schedule Of Pension And Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
2023 | 14.8 |
2024 | 10 |
2025 | 10.3 |
2026 | 13.8 |
2027 | 11.6 |
2028-2032 | $ 57.5 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes Includes Results from Domestic and International Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. companies | $ (1,359.2) | $ (541) | $ (689.7) |
Non-U.S. companies | 59.2 | 6.5 | 35.2 |
Loss before income taxes | $ (1,300) | $ (534.5) | $ (654.5) |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 42 | $ (19.1) | $ (0.1) |
Foreign | 45.5 | 86.7 | 67.3 |
State | 17.8 | 8 | 6.4 |
Current income tax expense | 105.3 | 75.6 | 73.6 |
Deferred: | |||
Federal | (90.7) | (123.9) | (131) |
Foreign | (17.1) | (14) | (7.1) |
State | (10.6) | (9.6) | (16.6) |
Deferred income tax benefit | (118.4) | (147.5) | (154.7) |
Total benefit for income taxes | $ (13.1) | $ (71.9) | $ (81.1) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Benefit for income taxes at federal statutory rate | $ (273) | $ (112.2) | $ (137.4) |
State income taxes, net of federal tax effect | (8.4) | (20.9) | (21.6) |
Other permanent items | 12.5 | 7 | 11 |
Equity-based compensation | (5.6) | 7 | 16.1 |
Other changes in tax laws and tax rulings | 4.7 | 37.9 | (38.2) |
Goodwill related items | 232 | 2.8 | 42.8 |
Base erosion and anti-abuse tax | 0 | 10.2 | 0 |
Foreign-derived intangible income deduction | (7.4) | (7.5) | 3.8 |
Federal tax credits | (26.4) | (23.2) | (23.4) |
Change in unrecognized tax benefits | (7.1) | (13.2) | (2.6) |
Withholding taxes and Subpart F income, net of foreign tax credits | 48.8 | 19.7 | 23.6 |
Foreign earnings taxed at other than federal rate | 6.6 | 5.6 | 20.9 |
Tax provision adjustments and revisions to prior years' returns | (3.2) | (5.8) | 7.1 |
Change in valuation allowances | 13.4 | 20.7 | 24.4 |
Total benefit for income taxes | $ (13.1) | $ (71.9) | $ (81.1) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities and Classification of Deferred Tax Balances (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accounts receivable, inventory and warranty reserves | $ 138.3 | $ 109.4 |
Employee benefits | 60.4 | 50.9 |
Foreign net operating loss and tax credit carryforwards | 573.3 | 649 |
Federal net operating loss and tax credit carryforwards | 22 | 115.2 |
State net operating loss and tax credit carryforwards | 103.6 | 108.9 |
Unrecognized tax benefits | 30.8 | 43 |
Interest limitation | 75.4 | 51.7 |
Capitalized research and development costs | 471.6 | 391.6 |
Other | 92.6 | 85.9 |
Total deferred tax assets | 1,568 | 1,605.6 |
Valuation allowance | (643.1) | (706.7) |
Total deferred tax assets, net of valuation allowance | 924.9 | 898.9 |
Deferred tax liabilities: | ||
Intangible assets | (542.7) | (629.7) |
Property, plant and equipment | (15.3) | (19.1) |
Undistributed foreign earnings | (20.6) | (17.6) |
Other | 13 | 13.6 |
Total deferred tax liabilities | (591.6) | (680) |
Net deferred tax asset (liability) | 333.3 | |
Deferred taxes recognized on the balance sheet: | ||
Noncurrent deferred tax asset (included with other noncurrent assets) | 506.7 | 427.1 |
Noncurrent deferred tax liability | (173.4) | (208.2) |
Net deferred tax asset | 333.3 | $ 218.9 |
Net deferred tax asset (liability) | $ (333.3) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Taxes [Line Items] | |||
Foreign net operating loss carryforwards | $ 560.3 | ||
Foreign tax credit carryforwards | 13 | ||
Net operating loss carryforward, valuation allowance | 542.8 | ||
Federal net operating loss carryforwards | 4.9 | ||
State net operating loss carryforwards | 37.3 | ||
State tax credit carryforwards | 66.3 | ||
Valuation allowance established against other deferred tax assets | 3.4 | ||
Deferred tax liability related to undistributed foreign earnings | 20.6 | $ 17.6 | |
Unrecognized tax benefits | 115.6 | ||
Reduction of penalties in next twelve months | 7 | ||
Interest and penalties | 9.4 | 9.4 | |
Net expense (benefit) for interest and penalties recognized | $ 0.1 | $ (0.1) | $ (1.3) |
Federal, state and local tax returns filling limitation, minimum | 3 years | 3 years | |
Federal, state and local tax returns filling limitation, maximum | 4 years | ||
Recognized amount related to the lapse of applicable statutes | $ 9.7 | ||
CommScope Technologies Finance LLC [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Federal, state and local tax returns filling limitation, minimum | 3 years | ||
Federal, state and local tax returns filling limitation, maximum | 7 years | ||
Foreign Carryforwards [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Foreign tax credit carryforwards | $ 17.1 | ||
Foreign Carryforwards [Member] | Minimum [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Expiration date of tax credit | 2023 | ||
Foreign Carryforwards [Member] | Minimum [Member] | State and Local Jurisdiction [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Expiration date of operating loss | 2023 | ||
Federal Carryforwards [Member] | Domestic Tax Authority [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforward, valuation allowance | $ 17.1 | ||
Federal Carryforwards [Member] | Minimum [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Expiration date of tax credit | 2030 | ||
Federal Carryforwards [Member] | Minimum [Member] | U.S. Foreign Tax Authority [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Expiration date of tax credit | 2028 | ||
State Carryforwards [Member] | State and Local Jurisdiction [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforward, valuation allowance | $ 79.8 | ||
State Carryforwards [Member] | Minimum [Member] | State and Local Jurisdiction [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
Expiration date of tax credit | 2023 | ||
Expiration date of operating loss | 2023 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and End of Period Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 176.6 | $ 190.5 | $ 191.9 |
Increase related to prior periods | 1.1 | 0.7 | 2.5 |
Decrease related to prior periods | (23.3) | (0.3) | (4.5) |
Increase related to current periods | 5.1 | 5.9 | 5 |
Decrease related to settlements with taxing authorities | (13.4) | (7.5) | (0.9) |
Decrease related to lapse in statutes of limitations | (0.6) | (12.7) | (2.6) |
Increase (decrease) related to the ARRIS acquisition | (0.9) | ||
Balance at end of period | $ 145.5 | $ 176.6 | $ 190.5 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) Related to Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Foreign currency translation | $ 1.2 | $ 1.2 | $ (5) |
Defined benefit plans | 0.8 | 6.6 | (3.5) |
Total | $ 2 | $ 7.8 | $ (8.5) |
Series A Convertible Preferre_2
Series A Convertible Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Apr. 04, 2019 | Apr. 04, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | |||||
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | |||
Series A Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Convertible preferred stock liquidation preference | 100% | 100% | |||
Discounted rate of remaining scheduled dividends | 10% | ||||
Carlyle [Member] | |||||
Class Of Stock [Line Items] | |||||
Agreement date | Nov. 08, 2018 | ||||
Carlyle [Member] | Series A Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Convertible preferred stock, share issued | 1,000,000 | 1,000,000 | |||
Preferred stock, shares authorized | 1,200,000 | ||||
Total purchase price | $ 1,000 | ||||
Total purchase price per share | $ 1,000 | $ 1,000 | |||
Convertible preferred stock, conversion price per share | $ 49.50 | $ 49.50 | |||
Initial conversion rate of common stock per share of the convertible preferred stock | 363,636 | 363,636 | |||
Convertible preferred stock, conversion price per share | $ 27.50 | $ 27.50 | |||
Convertible preferred stock threshold trading days | 30 days | ||||
Convertible preferred stock threshold consecutive trading days | 45 days | ||||
Convertible preferred stock threshold final trading days of consecutive trading days | 5 days | ||||
Carlyle [Member] | Series A Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Liquidation perference per share | $ 1,000 | $ 1,000 | |||
Convertible preferred stock, dividend payment terms | Holders of the Convertible Preferred Stock are entitled to a cumulative dividend at the rate of 5.5% per year, payable quarterly in arrears. | ||||
Convertible preferred stock, dividend rate percentage | 5.50% | ||||
Increase in convertible preferred stock dividend rate percentage | 2.50% | ||||
Convertible preferred stock, dividend rate if dividend not paid | 8% | ||||
Additional increase in convertible preferred stock dividend rate percentage quarterly | 0.50% | ||||
Convertible preferred stock dividend rate percentage subject to a cap per year | 11% | ||||
Dividends declared payable in cash | $ 14.9 | $ 43 | $ 14.3 | ||
Dividends declared payable in kind | $ 44.1 | $ 14.3 | $ 41.8 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 08, 2020 | Dec. 31, 2019 | |
Stockholders Equity [Line Items] | |||||
Unrecognized compensation costs related to unvested stock options, (RSUs) and (PSUs) | $ 89 | ||||
Recognition period of unrecognized compensation expense | 1 year 10 months 24 days | ||||
Capitalized equity-based compensation costs | $ 0 | ||||
Intrinsic value of options exercised | 0 | ||||
Equity-based compensation | $ 61.1 | $ 79.6 | $ 115 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Stockholders Equity [Line Items] | |||||
Weighted average grant date fair value per unit | $ 8.05 | $ 20.19 | $ 10.49 | ||
Fair value of stock vested | $ 76.5 | $ 82.4 | $ 76 | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||
Stockholders Equity [Line Items] | |||||
Vesting period, year | 3 years | ||||
Performance Shares [Member] | |||||
Stockholders Equity [Line Items] | |||||
Weighted average grant date fair value per unit | $ 9.51 | $ 14.47 | $ 4.63 | ||
Fair value of stock vested | $ 3.5 | $ 1 | $ 18.4 | ||
Performance Shares [Member] | Minimum [Member] | |||||
Stockholders Equity [Line Items] | |||||
Number of shares issued on performance | 0% | 0% | 0% | ||
Performance Shares [Member] | Maximum [Member] | |||||
Stockholders Equity [Line Items] | |||||
Number of shares issued on performance | 300% | 100% | 200% | ||
Stock Options [Member] | |||||
Stockholders Equity [Line Items] | |||||
Contractual term | 10 years | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 2.3 | ||||
Intrinsic value of options exercised | 0.1 | $ 5.4 | $ 7.1 | ||
Equity-based compensation | $ 0 | $ 0 | $ 0 | ||
Weighted average grant date fair value per unit | $ 11.21 | $ 11.21 | $ 4.03 | ||
Stock Options [Member] | Minimum [Member] | |||||
Stockholders Equity [Line Items] | |||||
Vesting period, year | 5 years | ||||
2020 Executive Inducement Awards [Member] | |||||
Stockholders Equity [Line Items] | |||||
Number of common stock authorizing for issuance | 3.9 | 15.8 | 8 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Equity-Based Compensation Expense Included in the Statements of Operations (Detail) - USD ($) $ in Millions | 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 equity-based compensation expense | $ 61.1 | $ 79.6 | $ 115 |
Selling, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 34.6 | 40.7 | 63 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 18.3 | 25.8 | 33.5 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | $ 8.2 | $ 13.1 | $ 18.5 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.70% | 0.40% | 0.20% |
Expected volatility | 61.20% | 56% | 51.70% |
Weighted average fair value at grant date | $ 11.21 | $ 11.21 | $ 4.03 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] shares in Millions | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share units, Beginning balance | shares | 10.4 |
Shares, Granted | shares | 7.3 |
Shares, Vested and shares issued | shares | (5.1) |
Shares, Forfeited | shares | (1.4) |
Non-vested share units, Ending balance | shares | 11.2 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ / shares | $ 15.04 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | 8.05 |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | $ / shares | 14.99 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 14.02 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ / shares | $ 10.66 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of PSU Activity (Detail) - Performance Shares [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share units, Beginning balance | shares | 2,100,000 |
Shares, Granted | shares | 1.4 |
Shares, Vested and shares issued | shares | (0.4) |
Shares, Forfeited | shares | (0.2) |
Non-vested share units, Ending balance | shares | 2,900,000 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ / shares | $ 7.69 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | 9.51 |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | $ / shares | 8.13 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 15.91 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ / shares | $ 8.14 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Activity in Product Warranty Accrual, Included in Other Accrued Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Product warranty accrual, beginning of period | $ 66.8 | $ 59.5 | $ 61 |
Provision for warranty claims | 24.7 | 38.5 | 30.9 |
Warranty claims paid | (36.1) | (30.8) | (32.4) |
Foreign exchange | (0.4) | (0.4) | 0 |
Product warranty accrual, end of period | $ 55 | $ 66.8 | $ 59.5 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss contingency liability amount | $ 37.1 | $ 24.6 | |
Payments to settle intellectual property assertions | 21 | 56.1 | $ 109 |
Guarantee agreements, Amount | 0 | ||
Third-Party Guarantees [Member] | |||
Letters of credit | 44 | ||
Cost of Sales [Member] | |||
Loss Contingency Loss In Period | $ 31 | 48.6 | $ 7.8 |
ARRIS [Member] | Cost of Sales [Member] | |||
Contingency recognized | $ 17.1 |
Industry Segments, Major Cust_3
Industry Segments, Major Customers, Related Party Transactions and Geographic Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) Customer | |
Segment Reporting Information [Line Items] | |||
Related party transaction | $ | $ 0 | $ 0 | $ 0 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Non-US [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 38% | 42% | 39% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Other Than Comcast [Member] | |||
Segment Reporting Information [Line Items] | |||
Other direct customer accounted for 10% or more | 0 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Other Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | 10% | |
Other direct customer accounted for 10% or more | 0 | 0 | |
Sales Revenue, Net [Member] | Maximum [Member] | Customer Concentration Risk [Member] | Comcast Corporation | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 11% | ||
Sales Revenue, Net [Member] | Maximum [Member] | Customer Concentration Risk [Member] | Other Than Comcast [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Other Charter Communications Inc [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | ||
Other direct customer accounted for 10% or more | 0 | 0 | |
Accounts Receivable [Member] | Maximum [Member] | Customer Concentration Risk [Member] | Other Charter Communications Inc [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | ||
Accounts Receivable [Member] | Maximum [Member] | Customer Concentration Risk [Member] | Charter Communication Inc [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 12% | ||
Net Assets, Geographic Area [Member] | United States (U.S.) [Member] | |||
Segment Reporting Information [Line Items] | |||
Company's long-lived assets | 60% | 63% | |
Net Assets, Geographic Area [Member] | Europe, Middle East and Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Company's long-lived assets | 14% | 13% | |
Net Assets, Geographic Area [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Company's long-lived assets | 18% | 18% | |
Net Assets, Geographic Area [Member] | Caribbean and Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Company's long-lived assets | 8% | 6% |
Industry Segments, Major Cust_4
Industry Segments, Major Customers, Related Party Transactions and Geographic Information - Summary of Financial Information by Reportable Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 11,685.4 | $ 13,259.5 | ||
Cash and cash equivalents | 398.1 | 360.3 | $ 521.9 | $ 598.2 |
Deferred income tax assets | 506.7 | 427.1 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 10,780.6 | 12,472.1 | ||
Operating Segments | C C S [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 4,263.8 | 4,377.2 | ||
Operating Segments | OWN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,166.8 | 1,386.5 | ||
Operating Segments | N I C S [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,338.1 | 1,397 | ||
Operating Segments | A N S [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,632.6 | 3,831.9 | ||
Operating Segments | Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,379.3 | 1,479.5 | ||
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 398.1 | 360.3 | ||
Deferred income tax assets | $ 506.7 | $ 427.1 |
Industry Segments, Major Cust_5
Industry Segments, Major Customers, Related Party Transactions and Geographic Information - Summary of Net Sales, Adjusted EBITDA, Depreciation Expense and Additions to PP&E by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 9,228.1 | $ 8,586.7 | $ 8,435.9 |
Total segment adjusted EBITDA | 1,276.7 | 1,117 | 1,215.2 |
Amortization of intangible assets | (543) | (613) | (630.5) |
Restructuring credits, net | (62.9) | (91.9) | (88.4) |
Equity-based compensation | (61.1) | (79.6) | (115) |
Asset impairments | (1,119.6) | (13.7) | (206.7) |
Transaction, transformation and integration costs | (38.2) | (90.3) | (24.9) |
Acquisition accounting adjustments | (7.3) | (11.5) | (20.6) |
Patent claims and litigation settlements | (28.5) | (31.7) | (16.3) |
Executive severance | 0 | 0 | (6.3) |
Reserve of Russian accounts receivable | (2.7) | 0 | 0 |
Depreciation | (127.2) | (136.7) | (158.3) |
Consolidated operating income (loss) | (713.8) | 48.6 | (51.8) |
Additions to property, plant and equipment | 101.3 | 131.4 | 121.2 |
C C S [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,789.6 | 3,053.8 | 2,551.8 |
Total segment adjusted EBITDA | 643.6 | 448.9 | 447.5 |
Restructuring credits, net | (17.1) | (62) | (25.9) |
Depreciation | 58.8 | 53.6 | 53.9 |
Additions to property, plant and equipment | 64.6 | 81.5 | 61.8 |
OWN [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,467.9 | 1,417.1 | 1,250.4 |
Total segment adjusted EBITDA | 269.7 | 266.8 | 277.3 |
Restructuring credits, net | (22.4) | (3.6) | (15.7) |
Depreciation | 14.3 | 15.4 | 17.2 |
Additions to property, plant and equipment | 9.9 | 11 | 12.8 |
N I C S [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 939.7 | 861.9 | 847.1 |
Total segment adjusted EBITDA | 51.9 | (15.3) | 12.8 |
Restructuring credits, net | (9.9) | (8.5) | (8) |
Depreciation | 15 | 19.2 | 21 |
Additions to property, plant and equipment | 7 | 13.4 | 10.1 |
A N S [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,327.5 | 1,404.6 | 1,379.1 |
Total segment adjusted EBITDA | 285.2 | 391.1 | 346.3 |
Restructuring credits, net | (12.2) | (9.2) | (8.8) |
Depreciation | 22.5 | 25.8 | 31.1 |
Additions to property, plant and equipment | 11.1 | 14.6 | 10.3 |
Home [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,703.4 | 1,849.3 | 2,407.5 |
Total segment adjusted EBITDA | 26.3 | 25.5 | 131.3 |
Depreciation | 16.6 | 22.7 | 35.1 |
Additions to property, plant and equipment | $ 8.7 | $ 10.9 | $ 26.2 |
Industry Segments, Major Cust_6
Industry Segments, Major Customers, Related Party Transactions and Geographic Information - Summary of Sales by Geographic Region, Based on Destination of Product Shipments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | $ 9,228.1 | $ 8,586.7 | $ 8,435.9 |
C C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 3,789.6 | 3,053.8 | 2,551.8 |
OWN [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 1,467.9 | 1,417.1 | 1,250.4 |
N I C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 939.7 | 861.9 | 847.1 |
A N S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 1,327.5 | 1,404.6 | 1,379.1 |
Home [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 1,703.4 | 1,849.3 | $ 2,407.5 |
United States (U.S.) [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 5,750.5 | 4,960.5 | |
United States (U.S.) [Member] | C C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 2,513.6 | 1,823.6 | |
United States (U.S.) [Member] | OWN [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 1,062.6 | 894.3 | |
United States (U.S.) [Member] | N I C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 539.5 | 490.4 | |
United States (U.S.) [Member] | A N S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 902.4 | 824.5 | |
United States (U.S.) [Member] | Home [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 732.4 | 927.7 | |
Europe, Middle East and Africa (EMEA) [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 1,595 | 1,620.6 | |
Europe, Middle East and Africa (EMEA) [Member] | C C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 571.9 | 548 | |
Europe, Middle East and Africa (EMEA) [Member] | OWN [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 218 | 272.4 | |
Europe, Middle East and Africa (EMEA) [Member] | N I C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 250.7 | 238.2 | |
Europe, Middle East and Africa (EMEA) [Member] | A N S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 124.2 | 146.7 | |
Europe, Middle East and Africa (EMEA) [Member] | Home [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 430.2 | 415.3 | |
Asia Pacific (APAC) [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 824.5 | 938.6 | |
Asia Pacific (APAC) [Member] | C C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 431.4 | 439.8 | |
Asia Pacific (APAC) [Member] | OWN [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 120.8 | 150.7 | |
Asia Pacific (APAC) [Member] | N I C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 114.1 | 102.5 | |
Asia Pacific (APAC) [Member] | A N S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 79.2 | 131.4 | |
Asia Pacific (APAC) [Member] | Home [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 79 | 114.2 | |
Caribbean and Latin America (CALA) [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 595.7 | 699 | |
Caribbean and Latin America (CALA) [Member] | C C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 179.3 | 169.1 | |
Caribbean and Latin America (CALA) [Member] | OWN [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 32.8 | 44.6 | |
Caribbean and Latin America (CALA) [Member] | N I C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 20.3 | 18.3 | |
Caribbean and Latin America (CALA) [Member] | A N S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 164.3 | 246.8 | |
Caribbean and Latin America (CALA) [Member] | Home [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 199 | 220.2 | |
CANADA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 462.4 | 368 | |
CANADA | C C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 93.4 | 73.3 | |
CANADA | OWN [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 33.7 | 55.1 | |
CANADA | N I C S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 15.1 | 12.5 | |
CANADA | A N S [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 57.4 | 55.2 | |
CANADA | Home [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | $ 262.8 | $ 171.9 |