Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 13, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | COMM | |
Entity Registrant Name | CommScope Holding Company, Inc. | |
Entity Central Index Key | 1,517,228 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 192,085,842 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 1,120,517 | $ 1,137,285 |
Operating costs and expenses: | ||
Cost of sales | 709,117 | 683,478 |
Selling, general and administrative | 185,131 | 211,821 |
Research and development | 49,864 | 48,988 |
Amortization of purchased intangible assets | 67,229 | 67,638 |
Restructuring costs, net | 5,450 | 5,388 |
Total operating costs and expenses | 1,016,791 | 1,017,313 |
Operating income | 103,726 | 119,972 |
Other income (expense), net | 983 | (15,357) |
Interest expense | (59,807) | (69,554) |
Interest income | 1,434 | 874 |
Income before income taxes | 46,336 | 35,935 |
Income tax expense | (12,601) | (2,373) |
Net income | $ 33,735 | $ 33,562 |
Earnings per share: | ||
Basic | $ 0.18 | $ 0.17 |
Diluted | $ 0.17 | $ 0.17 |
Weighted average shares outstanding: | ||
Basic | 191,366 | 194,068 |
Diluted | 195,459 | 199,140 |
Comprehensive income: | ||
Net income | $ 33,735 | $ 33,562 |
Other comprehensive income, net of tax: | ||
Foreign currency translation gain | 46,785 | 40,351 |
Pension and other postretirement benefit activity | (1,432) | (369) |
Loss on net investment hedge | (598) | (355) |
Available-for-sale securities | 1,309 | |
Total other comprehensive income, net of tax | 44,755 | 40,936 |
Total comprehensive income | $ 78,490 | $ 74,498 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 472,733 | $ 453,977 |
Accounts receivable, less allowance for doubtful accounts of $15,107 and $13,976, respectively | 984,847 | 898,829 |
Inventories, net | 470,946 | 444,941 |
Prepaid expenses and other current assets | 153,681 | 146,112 |
Total current assets | 2,082,207 | 1,943,859 |
Property, plant and equipment, net of accumulated depreciation of $407,331 and $390,389, respectively | 464,306 | 467,289 |
Goodwill | 2,900,958 | 2,886,630 |
Other intangible assets, net | 1,578,003 | 1,636,084 |
Other noncurrent assets | 124,993 | 107,804 |
Total assets | 7,150,467 | 7,041,666 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 460,498 | 436,737 |
Other accrued liabilities | 301,380 | 286,980 |
Total current liabilities | 761,878 | 723,717 |
Long-term debt | 4,371,821 | 4,369,401 |
Deferred income taxes | 128,965 | 134,241 |
Pension and other postretirement benefit liabilities | 25,212 | 25,140 |
Other noncurrent liabilities | 131,234 | 141,341 |
Total liabilities | 5,419,110 | 5,393,840 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value: Authorized shares: 200,000,000; Issued and outstanding shares: None | ||
Common stock, $0.01 par value: Authorized shares: 1,300,000,000; Issued and outstanding shares: 192,077,678 and 190,906,110, respectively | 1,988 | 1,972 |
Additional paid-in capital | 2,348,498 | 2,334,071 |
Retained earnings (accumulated deficit) | (356,259) | (395,998) |
Accumulated other comprehensive loss | (41,848) | (86,603) |
Treasury stock, at cost: 6,733,285 shares and 6,336,144 shares, respectively | (221,022) | (205,616) |
Total stockholders' equity | 1,731,357 | 1,647,826 |
Total liabilities and stockholders' equity | $ 7,150,467 | $ 7,041,666 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 15,107 | $ 13,976 |
Property, plant and equipment, accumulated depreciation | $ 407,331 | $ 390,389 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,300,000,000 | 1,300,000,000 |
Common stock, shares issued | 192,077,678 | 190,906,110 |
Common stock, shares outstanding | 192,077,678 | 190,906,110 |
Treasury stock, shares | 6,733,285 | 6,336,144 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net income | $ 33,735 | $ 33,562 |
Adjustments to reconcile net income to net cash generated by operating activities: | ||
Depreciation and amortization | 89,405 | 100,401 |
Equity-based compensation | 10,547 | 9,412 |
Deferred income taxes | (5,444) | (16,444) |
Changes in assets and liabilities: | ||
Accounts receivable | (71,108) | 19,683 |
Inventories | (25,207) | (19,132) |
Prepaid expenses and other assets | (24,502) | (12,314) |
Accounts payable and other liabilities | 15,412 | (28,032) |
Other | 12,422 | 15,653 |
Net cash generated by operating activities | 35,260 | 102,789 |
Investing Activities: | ||
Additions to property, plant and equipment | (13,576) | (12,910) |
Proceeds from sale of property, plant and equipment | 2,984 | 355 |
Other | 639 | |
Net cash used in investing activities | (10,592) | (11,916) |
Financing Activities: | ||
Long-term debt repaid | (750,000) | |
Long-term debt proceeds | 750,000 | |
Debt issuance and modification costs | (6,115) | |
Debt extinguishment costs | (14,800) | |
Cash paid for repurchase of common stock | (58,770) | |
Proceeds from the issuance of common shares under equity-based compensation plans | 3,929 | 5,805 |
Tax withholding payments for vested equity-based compensation awards | (15,406) | (14,758) |
Net cash used in financing activities | (11,477) | (88,638) |
Effect of exchange rate changes on cash and cash equivalents | 5,565 | 7,174 |
Change in cash and cash equivalents | 18,756 | 9,409 |
Cash and cash equivalent at beginning of period | 453,977 | 428,228 |
Cash and cash equivalents at end of period | $ 472,733 | $ 437,637 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, at Cost [Member] |
Beginning balance, Shares at Dec. 31, 2016 | 193,837,437 | |||||
Issuance of shares under equity-based compensation plans, shares | 1,655,631 | |||||
Shares surrendered under equity-based compensation plans | (393,594) | |||||
Repurchase of common stock | (1,632,986) | |||||
Ending balance, Shares at Mar. 31, 2017 | 193,466,488 | |||||
Beginning balance at Dec. 31, 2016 | $ 1,950 | $ 2,282,014 | $ (589,556) | $ (285,113) | $ (15,211) | |
Issuance of shares under equity-based compensation plans | 16 | 5,789 | ||||
Equity-based compensation | 9,316 | |||||
Cumulative effect of change in accounting principle | 295 | |||||
Net income | $ 33,562 | 33,562 | ||||
Cumulative effect of change in accounting principle | (206) | |||||
Other comprehensive income, net of tax | 40,936 | 40,936 | ||||
Repurchase of common stock | (65,011) | |||||
Net shares surrendered under equity-based compensation plans | (14,758) | |||||
Ending balance at Mar. 31, 2017 | $ 1,404,023 | $ 1,966 | 2,297,414 | (556,200) | (244,177) | (94,980) |
Beginning balance, Shares at Dec. 31, 2017 | 190,906,110 | 190,906,110 | ||||
Issuance of shares under equity-based compensation plans, shares | 1,568,709 | |||||
Shares surrendered under equity-based compensation plans | (397,141) | |||||
Ending balance, Shares at Mar. 31, 2018 | 192,077,678 | 192,077,678 | ||||
Beginning balance at Dec. 31, 2017 | $ 1,647,826 | $ 1,972 | 2,334,071 | (395,998) | (86,603) | (205,616) |
Issuance of shares under equity-based compensation plans | 16 | 3,913 | ||||
Equity-based compensation | 10,514 | |||||
Net income | 33,735 | 33,735 | ||||
Cumulative effect of change in accounting principle | 6,004 | |||||
Other comprehensive income, net of tax | 44,755 | 44,755 | ||||
Net shares surrendered under equity-based compensation plans | (15,406) | |||||
Ending balance at Mar. 31, 2018 | $ 1,731,357 | $ 1,988 | $ 2,348,498 | $ (356,259) | $ (41,848) | $ (221,022) |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Background and Basis of Presentation | 1. BACKGROUND AND BASIS OF PRESENTATION Background CommScope Holding Company, Inc., along with its direct and indirect subsidiaries (CommScope or the Company), is a global provider of infrastructure solutions for the core, access and edge layers of communication networks. The Company’s solutions and services for wired and wireless networks enable high-bandwidth data, video and voice applications. CommScope’s global leadership position is built upon innovative technology, broad solution offerings, high-quality and cost-effective customer solutions, and global manufacturing and distribution scale. Basis of Presentation The Condensed Consolidated Balance Sheet as of March 31, 2018 and the Condensed Consolidated Statements of Operations and Comprehensive Income, Cash Flows and Stockholders’ Equity for the three months ended March 31, 2018 and 2017 are unaudited and reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for these interim periods are not necessarily indicative of the results of operations to be expected for any future period or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The significant accounting policies followed by the Company are set forth in Note 2 within the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the 2017 Annual Report). Other than the changes described below to revenue recognition policies as a result of the adoption of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, Revenue Recognition The Company recognizes revenue based on the satisfaction of distinct obligations to transfer goods and services to customers. The majority of the Company’s revenue is from product sales. Revenue from product sales is recognized when control is transferred to the customer, typically upon either shipment or delivery. A minor portion of the Company’s revenue is derived from project contracts containing a combination of product and service obligations. Revenue from project contracts is recognized at either a point in time or over time using cost input methods, based on the specific terms of each contract. For project contracts containing multiple distinct performance obligations, the transaction price is allocated based on the relative standalone estimated selling price of each performance obligation. The relative standalone selling price is determined using current price lists and observable pricing in separate contracts with similar customers. For performance obligations recognized over-time, judgment is required to evaluate assumptions, including the total estimated costs to determine progress towards contract completion and to calculate the corresponding amount of revenue to recognize. If estimated total costs on any contract are greater than the net contract revenues, the entire estimated loss is recognized in the period the loss becomes known. The cumulative effects on revenue from revisions to total estimated costs are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The Company also recognizes revenue from other customer contract types, including licensing of intellectual property, software licensing and post-contact support (PCS) which may be sold as part of a bundled product offering or as a separate contract. For bundled product arrangements, the transaction price is allocated based on the relative standalone estimated selling price of each performance obligation. Distinct intellectual property obligations, including software, are considered functional in nature and are recognized as revenue at the point in time the customer receives the rights to use and benefit from the intellectual property or are determined using a usage-based royalty. PCS obligations are typically recognized over the term of the contract. Revenue is measured based on the consideration to which the Company expects to be entitled, based on customer contracts. For sales to distributors, system integrators and value-added resellers (primarily for the CommScope Connectivity Solutions (CCS) segment), revenue is adjusted for variable consideration amounts, including estimated discounts, returns, rebates and distributor price protection programs. 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. The Company records a contract asset for unbilled accounts receivable related to revenue that has been recognized in advance of consideration being unconditionally due from the customer, which is common for certain project contract obligations. Contract asset amounts are transferred to accounts receivable when the Company’s right to the consideration becomes unconditional, which varies by contract, but is generally based on achieving certain acceptance milestones. 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 project or services arrangements. Concentrations of Risk and Related Party Transactions Net sales to Anixter International Inc. and its affiliates (Anixter) accounted for 10% of the Company’s total net sales during both the three months ended March 31, 2018 and 2017. Sales to Anixter primarily originate within the CCS segment. Other than Anixter, no direct customer accounted for 10% or more of the Company’s total net sales for the three months ended March 31, 2018 or 2017. No direct customer accounted for 10% or more of the Company’s accounts receivable as of March 31, 2018. Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over periods ranging from one to twenty-five years from the date of sale, depending upon the product subject to the warranty. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in other accrued liabilities: Three Months Ended March 31, 2018 2017 Product warranty accrual, beginning of period $ 16,928 $ 21,631 Provision for warranty claims 1,420 2,202 Warranty claims paid (2,217 ) (3,618 ) Foreign exchange 19 (35 ) Product warranty accrual, end of period $ 16,150 $ 20,180 Commitments and Contingencies The Company is either a plaintiff or a defendant in certain pending legal matters in the normal course of business. Management believes none of these legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. There were no goodwill impairments identified during the three months ended March 31, 2018 or 2017. Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are carried at estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment, and they are then measured at fair value if impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three months ended March 31, 2018 or 2017. Income Taxes On December 22, 2017, the U.S. government enacted tax reform legislation that reduced the corporate income tax rate from 35% to 21% and included a broad range of complex provisions affecting the taxation of businesses. Generally, financial statement recognition of the new legislation would be required to be completed in the period of enactment; however, in response to the complexities of this new legislation, the Securities and Exchange Commission (SEC) staff issued Staff Accounting Bulletin No. 118 to provide companies with transitional relief. Specifically, when the initial accounting for items under the new legislation is incomplete, the guidance allows the recognition of provisional amounts when reasonable estimates can be made or the continued application of the prior tax law if a reasonable estimate of the effect cannot be made. The SEC staff has provided up to one year from the date of enactment for companies to finalize the accounting for the effects of this new legislation. Although no changes were made to the provisional amounts during the three months ended March 31, 2018, the Company expects to refine the calculations as additional analysis is completed and as a more thorough understanding of the new tax law is reached. The changes made could be material to income tax expense. The effective income tax rate of 27.2% for the three months ended March 31, 2018 was higher than the statutory rate of 21.0% primarily due to the effect of the provision for state income taxes, the impact of earnings in foreign jurisdictions that are taxed at rates higher than the United States (U.S.) statutory rate, the impact of the new U.S. anti-deferral provisions and the impact of repatriation taxes. These increases to the effective tax rate were partially offset by the favorable impact of $4.3 million of excess tax benefits related to equity-based compensation awards. The effective income tax rate of 6.6% for the three months ended March 31, 2017 was significantly lower than the statutory rate of 35.0% primarily due to the favorable impact of $8.7 million of excess tax benefits related to equity-based compensation awards. The effective income tax rate was also favorably affected by the impact of earnings in foreign jurisdictions that the Company did not plan to repatriate. These earnings were generally taxed at rates lower than the U.S. statutory rate. Offsetting these decreases for the three months ended March 31, 2017 was the effect of the provision for state income taxes. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is based on net income divided by the weighted average number of common shares outstanding plus the effect of potentially dilutive common shares using the treasury stock method. Potentially dilutive common shares include outstanding equity-based awards (stock options, restricted stock units and performance share units). Certain outstanding equity-based awards were not included in the computation of diluted earnings per share because the effect was either antidilutive or the performance conditions were not met (0.5 million shares and 0.4 million shares for the three months ended March 31, 2018 and 2017, respectively). The following table presents the basis for the earnings per share computations (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Numerator: Net income for basic and diluted earnings per share $ 33,735 $ 33,562 Denominator: Weighted average common shares outstanding - basic 191,366 194,068 Dilutive effect of equity-based awards 4,093 5,072 Weighted average common shares outstanding - diluted 195,459 199,140 Earnings per share: Basic $ 0.18 $ 0.17 Diluted $ 0.17 $ 0.17 Recent Accounting Pronouncements Adopted During the Three Months Ended March 31, 2018 The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, Revenue recognition for the Company’s product sales remained generally consistent with historical practice. However, the adoption of ASU No. 2014-09 resulted in acceleration of revenue recognition for certain project contracts containing integrated product and service obligations, primarily within the CommScope Mobility Solutions (CMS) segment. These multi-element revenue contracts represented less than 1% of total net sales for the three months ended March 31, 2018. For these contracts, certain performance obligations are recognized over time using cost-based input methods, which recognize revenue and cost of sales based on the relationship between actual costs incurred compared to the total estimated cost for the contract. Based on customer-specific contracts in effect at January 1, 2018, the Company recorded a cumulative effect adjustment, net of tax, of $3.4 million that reduces the accumulated deficit on the Condensed Consolidated Balance Sheets. This adjustment reflects an acceleration of revenues of $8.0 million. The impact of adoption of the new revenue recognition standard on our condensed consolidated financial statements was as follows: Three Months Ended March 31, 2018 As Reported Amounts Without Adoption of ASU No. 2014-09 Effect of Change Increase / (Decrease) Net sales $ 1,120,517 $ 1,122,257 $ (1,740 ) Cost of sales 709,117 708,897 220 Operating income 103,726 105,686 (1,960 ) Income tax expense 12,601 13,114 (513 ) Net income 33,735 35,182 (1,447 ) As of March 31, 2018 As Reported Amounts Without Adoption of ASU No. 2014-09 Effect of Change Increase / (Decrease) Assets: Accounts receivable, less allowance for doubtful accounts $ 984,847 $ 980,187 $ 4,660 Inventories, net 470,946 474,556 (3,610 ) Liabilities: Other accrued liabilities 301,380 302,297 (917 ) Equity: Retained earnings (accumulated deficit) (356,259 ) (358,226 ) 1,967 The Company adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (except those accounted for under the equity method of accounting) The Company adopted ASU No. 2016-16, Accounting for Income Taxes, Intra-Entity Asset Transfers of Assets Other than Inventory, The Company adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The Company adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities Issued but Not Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test of Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU No. 2016-02, Leases supersedes the current leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize assets and lease liabilities for the rights and obligations created by leased assets previously classified as operating leases |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 2. ACQUISITIONS On August 1, 2017, the Company acquired Cable Exchange in an all cash transaction. The Company paid $108.7 million ($105.2 million net of cash acquired) and recorded a $14.5 million liability for the remaining payments due. Cable Exchange is a quick-turn supplier of fiber optic and copper assemblies for data, voice and video communications. Net sales of Cable Exchange products are reflected in the CCS segment for the three months ended March 31, 2018 and were not material. The preliminary allocation of the purchase price, based on estimates of the fair values of the assets acquired and liabilities assumed, is as follows (in millions): Estimated Fair Value Cash and cash equivalents $ 3.5 Accounts receivable 6.4 Inventory 4.4 Property, plant and equipment 0.9 Goodwill 49.6 Identifiable intangible assets 61.1 Less: Liabilities assumed (2.7 ) Net acquisition cost $ 123.2 The goodwill arising from the purchase price allocation of the Cable Exchange acquisition is believed to result from the Company’s reputation in the marketplace and assembled workforce and is expected to be deductible for income tax purposes. As additional information is obtained, adjustments may be made to the preliminary purchase price allocation. The Company is still finalizing the estimated fair value of certain liabilities assumed. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 3. GOODWILL The following table presents goodwill by reportable segment (in millions): CCS CMS Total Goodwill, gross at December 31, 2017 $ 2,193.2 $ 904.4 $ 3,097.6 Foreign exchange 14.3 0.1 14.4 Goodwill, gross at March 31, 2018 2,207.5 904.5 3,112.0 Accumulated impairment charges at December 31, 2017 and March 31, 2018 (51.5 ) (159.5 ) (211.0 ) Goodwill, net at March 31, 2018 $ 2,156.0 $ 745.0 $ 2,901.0 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | 4. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Disaggregated Net Sales The following table presents net sales by reportable segment, disaggregated based on contract type (in millions): Three Months Ended March 31, 2018 CCS CMS Total Contract type: Product contracts $ 671.5 $ 425.3 $ 1,096.8 Project contracts — 10.5 10.5 Other contracts 2.1 11.1 13.2 Consolidated net sales $ 673.6 $ 446.9 $ 1,120.5 Further information on net sales by reportable segment and geographic region is included in Note 8. Allowance for Doubtful Accounts Three Months Ended March 31, 2018 2017 Allowance for doubtful accounts, beginning of period $ 13,976 $ 17,211 Charged to costs and expenses 1,466 812 Deductions (1) (335 ) 80 Allowance for doubtful accounts, end of period $ 15,107 $ 18,103 (1) Uncollectible customer accounts written off, net of recoveries of previously written off customer accounts. Customer Contract Balances The following table provides the balance sheet location and amounts of contract assets and liabilities from contracts with customers as of March 31, 2018 and December 31, 2017. Balance Sheet Location March 31, 2018 December 31, 2017 Unbilled accounts receivable Accounts receivable, less allowance for doubtful accounts $ 4,900 $ — Deferred revenue Other accrued liabilities 12,716 12,611 There were no material changes to contract asset balances for the three months ended March 31, 2018 as a result of changes in estimates or impairments. The full amount of the deferred revenue balance as of March 31, 2018 was classified as current as the Company expects to recognize these amounts as revenue over the next twelve months. Inventories March 31, 2018 December 31, 2017 Raw materials $ 137,902 $ 126,558 Work in process 105,390 98,526 Finished goods 227,654 219,857 $ 470,946 $ 444,941 Other Accrued Liabilities March 31, 2018 December 31, 2017 Compensation and employee benefit liabilities $ 93,021 $ 97,522 Accrued interest 48,876 23,485 Deferred revenue 12,716 12,611 Product warranty accrual 16,150 16,928 Restructuring reserve 15,793 24,961 Income taxes payable 14,354 16,949 Purchase price payable 12,655 2,098 Value-added taxes payable 11,980 11,838 Accrued professional fees 7,496 10,224 Other 68,339 70,364 $ 301,380 $ 286,980 Accumulated Other Comprehensive Loss The following table presents changes in accumulated other comprehensive income (AOCI), net of tax, and accumulated other comprehensive loss (AOCL), net of tax: Three Months Ended March 31, 2018 2017 Foreign currency translation Balance at beginning of period $ (52,770 ) $ (254,148 ) Other comprehensive income 46,785 40,084 Amounts reclassified from AOCL — 267 Balance at end of period $ (5,985 ) $ (213,797 ) Net investment hedge Balance at beginning of period $ (4,981 ) $ — Other comprehensive loss (598 ) (355 ) Balance at end of period $ (5,579 ) $ (355 ) Defined benefit plan activity Balance at beginning of period $ (28,852 ) $ (33,473 ) Amounts reclassified from AOCL (1,432 ) (369 ) Balance at end of period $ (30,284 ) $ (33,842 ) Available-for-sale securities Balance at beginning of period $ — $ 2,508 Other comprehensive income — 1,698 Amounts reclassified from AOCI — (389 ) Balance at end of period $ — $ 3,817 Net AOCL at end of period $ (41,848 ) $ (244,177 ) Amounts reclassified from net AOCL related to foreign currency translation and available-for-sale securities are recorded in other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Income. Defined benefit plan amounts reclassified from net AOCL are included in the computation of net periodic benefit cost (income) and are recorded in other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Income. Cash Flow Information Three Months Ended March 31, 2018 2017 Cash paid during the period for: Income taxes, net of refunds $ 22,056 $ 17,006 Interest 31,907 16,643 |
Financing
Financing | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Financing | 5. FINANCING March 31, 2018 December 31, 2017 5.00% senior notes due March 2027 $ 750,000 $ 750,000 6.00% senior notes due June 2025 1,500,000 1,500,000 5.50% senior notes due June 2024 650,000 650,000 5.00% senior notes due June 2021 650,000 650,000 Senior secured term loan due December 2022 886,250 886,250 Senior secured revolving credit facility expires May 2020 — — Total principal amount of debt $ 4,436,250 $ 4,436,250 Less: Original issue discount, net of amortization (3,236 ) (3,389 ) Less: Debt issuance costs, net of amortization (61,193 ) (63,460 ) Total long-term debt $ 4,371,821 $ 4,369,401 See Note 6 in the Notes to Consolidated Financial Statements in the 2017 Annual Report for additional information on the terms and conditions of the 5.00% senior notes due 2027, the 6.00% senior notes due 2025, the 5.50% senior notes due 2024, the 5.00% senior notes due 2021 and the senior secured term loan and revolving credit facility. Senior Secured Credit Facilities No portion of the senior secured term loan was reflected as a current portion of long-term debt as of March 31, 2018 related to the potentially required excess cash flow payment because the amount that may be payable in 2019, if any, cannot currently be reliably estimated. There was no excess cash flow payment required in 2018 related to 2017. During the three months ended March 31, 2018, the Company did not borrow under its revolving credit facility. As of March 31, 2018, the Company had availability of $437.2 million under the asset-based revolving credit facility, after giving effect to borrowing base limitations and outstanding letters of credit. Other Matters The Company’s non-guarantor subsidiaries held $2,636 million, or 37%, of total assets and $547 million, or 10%, of total liabilities as of March 31, 2018 and accounted for $464 million, or 41%, of net sales for the three months ended March 31, 2018. As of December 31, 2017, the non-guarantor subsidiaries held $2,587 million, or 37%, of total assets and $569 million, or 11%, of total liabilities. For the three months ended March 31, 2017, the non-guarantor subsidiaries accounted for approximately $440 million, or 39% million, of net sales. All amounts presented exclude intercompany balances. The weighted average effective interest rate on outstanding borrowings, including the amortization of debt issuance costs and original issue discount, was 5.54% and 5.45% at March 31, 2018 and December 31, 2017, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 6. 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 March 31, 2018, the Company had foreign exchange contracts outstanding with maturities of up to eleven months and aggregate notional values of $393 million (based on exchange rates as of March 31, 2018). Unrealized gains and losses resulting from these contracts are recognized in other income (expense), net and partially offset corresponding foreign exchange gains and losses on the balances and expenditures being hedged. These instruments are not held for speculative or trading purposes, are not designated as hedges for hedge accounting purposes and are marked to market each period through earnings. The following table presents the balance sheet location and fair value of the Company’s derivatives not designated as hedging instruments: Fair Value of Asset (Liability) Balance Sheet Location March 31, 2018 December 31, 2017 Foreign currency contracts Prepaid expenses and other current assets $ 10,724 $ 9,050 Foreign currency contracts Other accrued liabilities (580 ) (574 ) Total derivatives not designated as hedging instruments $ 10,144 $ 8,476 The pretax impact of these foreign currency forward contracts, both matured and outstanding, on the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows: Foreign Currency Forward Contracts Location of Gain Gain Recognized Three Months Ended March 31, 2018 Other income (expense), net $ 11,880 Three Months Ended March 31, 2017 Other income (expense), net 1,855 Derivative Instruments Designated As Net Investment Hedge The Company has a hedging strategy to designate certain foreign exchange contracts as net investment hedges to mitigate a portion of the foreign currency risk on the euro net investment in a foreign subsidiary. As of March 31, 2018, the Company held designated forward contracts with outstanding maturities of up to nine months and an aggregate notional value of $80.0 million. In the first quarter of 2018, the Company changed the method used to assess the effectiveness of its net investment hedges from the forward rate method to the spot rate method. The Company believes the spot rate method better aligns with the underlying foreign currency exposure of the hedged net investment. Effective January 1, 2018, the spot-forward differences of the designated forward contracts are excluded from hedge effectiveness at inception and are recognized on a straight-line basis to other income (expense), net over the life of each contract. For the three months ended March 31, 2018, the Company recognized $0.3 million of pretax income in other income (expense), net as a result of amortizing the spot-forward differences. Hedge effectiveness is assessed each quarter based on the net investment in the foreign subsidiary designated as the hedged item and the changes in the fair value of designated forward contracts based on spot rates. For hedges that meet the effectiveness requirements, changes in fair value are recorded as a component of other comprehensive income, net of tax. As of March 31, 2018, there was no ineffectiveness on the instruments designated as net investment hedges. The following table presents the balance sheet location and fair value of the derivative instruments designated as net investment hedges: Fair Value of Asset (Liability) Balance Sheet Location March 31, 2018 December 31, 2017 Foreign currency contracts Prepaid expenses and other current assets $ 284 $ — Foreign currency contracts Other accrued liabilities (1,116 ) (403 ) Total derivatives designated as net investment hedging instruments $ (832 ) $ (403 ) The after-tax impact of the effective portion of the forward contracts designated as net investment hedging instruments, both matured and outstanding, on the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows: Foreign Currency Forward Contracts Location of Loss Effective Portion of Loss Recognized Three Months Ended March 31, 2018 Other comprehensive income, net of tax $ (598 ) Three Months Ended March 31, 2017 Other comprehensive income, net of tax (355 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, debt instruments and foreign currency contracts. For cash and cash equivalents, trade receivables and trade payables, the carrying amounts of these financial instruments as of March 31, 2018 and December 31, 2017 were considered representative of their fair values due to their short terms to maturity. The fair values of the Company’s debt instruments 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 foreign currency contracts and debt instruments as of March 31, 2018 and December 31, 2017, are as follows: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Valuation Inputs Assets: Foreign currency contracts $ 11,008 $ 11,008 $ 9,050 $ 9,050 Level 2 Liabilities: 5.00% senior notes due 2027 750,000 714,375 750,000 753,750 Level 2 6.00% senior notes due 2025 1,500,000 1,557,600 1,500,000 1,591,800 Level 2 5.50% senior notes due 2024 650,000 663,000 650,000 676,780 Level 2 5.00% senior notes due 2021 650,000 658,125 650,000 661,375 Level 2 Senior secured term loan due 2022, at par 886,250 890,127 886,250 892,343 Level 2 Foreign currency contracts 1,696 1,696 977 977 Level 2 These fair value estimates are based on pertinent information available to management as of the valuation date. Although management is not aware of any factors that would significantly affect these fair value estimates, such amounts have not been comprehensively revalued for purposes of these financial statements since those dates, and current estimates of fair value may differ significantly from the amounts presented. |
Segments and Geographic Informa
Segments and Geographic Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | 8. SEGMENTS AND GEOGRAPHIC INFORMATION The CommScope Connectivity Solutions (CCS) segment provides innovative fiber optic and copper cable and connectivity solutions for use in data centers and business enterprise, telecommunications, cable television and residential broadband networks. The CCS portfolio includes solutions for indoor and outdoor network applications. Indoor network solutions are found in commercial buildings and in the network core, which includes data centers, central offices and cable television headends. These solutions include optical fiber and twisted pair structured cabling solutions, intelligent infrastructure management hardware and software, high-density fiber optic connectivity, fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems and cable assemblies for use in offices and date centers. Outdoor network solutions are found in both local-area and wide-area networks and “last-mile” fiber-to-the-home installations, including deployments of fiber-to-the-node (FTTN), fiber-to-the-premises (FTTP) and fiber-to-the-distribution point (FTTdP) to homes, businesses and cell sites. These solutions support the multichannel video, voice and high-speed data services provided by telecommunications operators and multi-system operators. The Company’s fiber optic connectivity solutions are primarily comprised of hardened connector systems, fiber distribution hubs and management systems, couplers and splitters, plug and play multiport service terminals, hardened optical terminating enclosures, high density cable assemblies, splices and splice closures. The CommScope Mobility Solutions (CMS) segment provides the integral building blocks for cellular base station sites and related connectivity; indoor, small cell and distributed antenna wireless systems; and wireless network backhaul planning and optimization products and services. These solutions enable wireless operators to increase spectral efficiency and enhance cellular coverage and capacity in challenging network conditions such as commercial buildings, urban areas, stadiums and transportation systems. The CMS segment focuses on all aspects of the radio access network (RAN) from the macro through the metro, to the indoor layer. Macro cell solutions can be found at wireless tower sites and on rooftops and include base station antennas, microwave antennas, hybrid fiber-feeder and power cables, coaxial cables, connectors and filters. Metro cell solutions can be found on street poles and on other urban, outdoor structures and include radio frequency (RF) delivery and connectivity solutions, equipment housing and concealment. These fully integrated outdoor systems are comprised of specialized antennas, filters/combiners, backhaul solutions, intra-system cabling and power distribution, all minimized to fit an urban environment. Distributed antenna systems and small cell indoor solutions allow wireless operators to increase spectral efficiency and thereby extend and enhance cellular coverage and capacity in challenging network conditions. The following table provides summary financial information by reportable segment (in millions): March 31, 2018 December 31, 2017 Identifiable segment-related assets: CCS $ 4,573.9 $ 4,546.0 CMS 2,058.0 1,995.8 Total identifiable segment-related assets 6,631.9 6,541.8 Reconciliation to total assets: Cash and cash equivalents 472.7 454.0 Deferred income tax assets 45.9 45.9 Total assets $ 7,150.5 $ 7,041.7 The following table provides net sales, adjusted operating income, depreciation expense and additions to property, plant and equipment by reportable segment (in millions): Three Months Ended March 31, 2018 2017 Net sales: CCS $ 673.6 $ 681.6 CMS 446.9 455.7 Consolidated net sales $ 1,120.5 $ 1,137.3 Segment adjusted operating income: CCS $ 108.7 $ 114.5 CMS 79.9 101.4 Total segment adjusted operating income 188.6 215.9 Amortization of intangible assets (67.2 ) (67.6 ) Restructuring costs, net (5.5 ) (5.4 ) Equity-based compensation (10.5 ) (9.4 ) Integration and transaction costs (1.7 ) (13.5 ) Consolidated operating income $ 103.7 $ 120.0 Depreciation expense: CCS $ 14.1 $ 14.4 CMS 5.5 5.6 Consolidated depreciation expense $ 19.6 $ 20.0 Additions to property, plant and equipment: CCS $ 8.8 $ 8.8 CMS 4.8 4.1 Consolidated additions to property, plant and equipment $ 13.6 $ 12.9 Sales to customers located outside of the U.S. comprised 45.8% and 43.0% of total net sales for the three months ended March 31, 2018 and 2017, respectively. Sales by geographic region, based on the destination of product shipments, were as follows (in millions): Three Months Ended March 31, 2018 2017 United States $ 607.5 $ 648.3 Europe, Middle East and Africa 249.7 231.8 Asia Pacific 188.6 181.9 Caribbean and Latin America 56.1 58.8 Canada 18.6 16.5 Consolidated net sales $ 1,120.5 $ 1,137.3 |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 9. 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 composed of employee-related costs, lease termination costs and fixed asset related costs. Employee-related costs include the expected severance costs and related benefits as well as one-time severance benefits that are accrued over the remaining period employees are required to work in order to receive such benefits. Lease termination costs relate to the discounted cost of unused leased facilities, net of anticipated sub-rental income. Fixed asset related costs include non-cash impairments or fixed asset disposals associated with restructuring actions in addition to the cash costs to uninstall, pack, ship and reinstall manufacturing equipment and the costs to prepare the receiving facility to accommodate relocated equipment. Fixed asset related costs are expensed as incurred. Cash paid is net of proceeds received from the sale of related assets. As a result of restructuring and consolidation actions, the Company owns unutilized real estate at various facilities in the U.S. and internationally. The Company is attempting to sell or lease this unutilized space. Additional impairment charges may be incurred related to these or other excess assets. The Company’s net pretax restructuring charges by segment were as follows: Three Months Ended March 31, 2018 2017 CCS $ 2,370 $ 4,757 CMS 3,080 631 Total $ 5,450 $ 5,388 Restructuring reserves were included in the Company’s Condensed Consolidated Balance Sheets as follows: March 31, 2018 December 31, 2017 Other accrued liabilities $ 15,793 $ 24,961 Other noncurrent liabilities 6,077 7,036 Total liability $ 21,870 $ 31,997 Cost Alignment Restructuring Actions Prior to the acquisition of TE Connectivity’s Broadband Network Solutions (BNS) business in August 2015, the Company initiated restructuring actions to realign and lower its cost structure, primarily through workforce reductions and other cost reduction initiatives, including the cessation of manufacturing operations at various facilities. As of March 31, 2018, these actions were substantially complete except for a $4.9 million liability for lease termination costs, for which the Company expects to make cash payments of $1.4 million during the remainder of 2018 and make the remaining payments of $3.5 million between 2019 and 2022. BNS Integration Restructuring Actions Following the acquisition of BNS, the Company initiated a series of restructuring actions, which are currently ongoing, to integrate and streamline operations and achieve cost synergies. The activity within the liability established for the BNS integration restructuring actions was as follows: Employee- Related Costs Lease Termination Costs Fixed Asset Related Costs Total Balance at December 31, 2017 $ 25,588 $ 1,080 $ — $ 26,668 Additional charge recorded 3,938 658 790 5,386 Cash paid (13,692 ) (844 ) (146 ) (14,682 ) Consideration received — — 2,279 2,279 Foreign exchange and other non-cash items 263 10 (2,923 ) (2,650 ) Balance at March 31, 2018 $ 16,097 $ 904 $ — $ 17,001 The BNS integration actions include the announced closures or reduction in activities at various U.S. and international facilities as well as headcount reductions in sales, marketing and administrative functions. The Company has recognized restructuring charges of $115.0 million since the BNS acquisition for integration actions. No significant additional restructuring charges are expected to be incurred to complete the previously announced BNS integration initiatives. The Company expects to make cash payments of $13.0 million during the remainder of 2018 and additional cash payments of $4.0 million between 2019 and 2022. Future restructuring actions may be identified and the resulting charges and cash requirements may be material. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 10. EMPLOYEE BENEFIT PLANS Pension Plans Three Months Ended March 31, U.S. Plans Non-U.S. Plans 2018 2017 2018 2017 Service cost $ — $ — $ 1,164 $ 1,164 Interest cost 1,323 1,490 1,354 1,271 Recognized actuarial loss 120 164 320 367 Amortization of prior service cost — — 10 — Expected return on plan assets (1,597 ) (1,687 ) (2,004 ) (1,819 ) Net periodic benefit cost (income) $ (154 ) $ (33 ) $ 844 $ 983 Service cost is primarily included in cost of sales and selling, general and administrative expenses while the other components of net periodic benefit cost (income) are included in other income (expense), net. The Company contributed $1.1 million to its defined benefit pension plans during the three months ended March 31, 2018. During the remainder of 2018, the Company anticipates making additional contributions of approximately $4.9 million to these plans. During the three months ended March 31, 2018, the Company communicated its intent to terminate a significant U.S. defined benefit pension plan. It is estimated that additional contributions of $1 million to $3 million will be required to fund the annuity purchase for the termination, which are incremental to the anticipated contributions discussed above. Upon termination, which is expected in late 2018 or early 2019, the Company expects to recognize a pretax charge in other income (expense), net, primarily related to unrecognized net actuarial losses currently recorded in accumulated other comprehensive loss of $25 million to $29 million. Other Postretirement Benefit Plans The Company has amended certain of its U.S. postretirement medical plans to terminate benefits as of December 31, 2018. The Company expects to recognize a pretax gain in other income (expense), net, in the fourth quarter of 2018 related to unrecognized prior service credits and unrecognized net actuarial gains currently recorded in accumulated other comprehensive loss of $9 million to $10 million. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY Stock Repurchase Program On August 3, 2017, the Company announced its Board of Directors had authorized the repurchase of up to $100.0 million of the Company’s outstanding common stock. No shares were repurchased under this plan during the three months ended March 31, 2018. The remaining authorization under the plan was $25.0 million at March 31, 2018 and the authorization expires on July 31, 2018. Equity-Based Compensation Plans As of March 31, 2018, $95.0 million of unrecognized compensation costs related to unvested stock options, restricted stock units (RSUs) and performance share units (PSUs) are expected to be recognized over a remaining weighted average period of 1.7 years. There were no significant capitalized equity-based compensation costs at March 31, 2018. The following table shows the income statement location of equity-based compensation expense: Three Months Ended March 31, 2018 2017 Selling, general and administrative $ 8,038 $ 7,159 Cost of sales 1,333 1,197 Research and development 1,176 1,056 Total equity-based compensation expense $ 10,547 $ 9,412 Stock Options Stock options are awards that allow the recipient to purchase shares of the Company’s common stock at a fixed price. Stock options are granted at an exercise price equal to the Company’s stock price at the date of grant. These awards generally vest over three years following the grant date and have a contractual term of ten years. The following table summarizes the stock option activity (in thousands, except per share data): Shares Weighted Average Option Exercise Price Per Share Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding at December 31, 2017 4,830 $ 13.01 Granted 444 $ 38.34 Exercised (331 ) $ 11.89 Forfeited (42 ) $ 33.38 Options outstanding at March 31, 2018 4,901 $ 15.21 4.5 $ 121,367 Options vested at March 31, 2018 4,050 $ 10.72 3.5 $ 118,432 Options unvested at March 31, 2018 851 $ 36.53 9.3 $ 2,935 The exercise prices of outstanding options at March 31, 2018 were in the following ranges: Options Outstanding Options Exercisable Range of Exercise Prices Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Per Share Shares (in thousands) Weighted Average Exercise Price Per Share $2.96 to $5.74 2,542 2.7 $ 5.43 2,542 $ 5.43 $5.75 to $22.99 703 2.1 $ 8.58 703 $ 8.58 $23.00 to $42.32 1,656 8.3 $ 33.04 805 $ 29.30 $2.96 to $42.32 4,901 4.5 $ 15.21 4,050 $ 10.72 The Company uses the Black-Scholes model to estimate the fair value of stock option awards at the date of grant. Key inputs and assumptions used in the model include the grant date fair value of common stock, exercise price of the award, the expected option term, the risk-free interest rate, stock price volatility and the Company’s projected dividend yield. The expected term represents the period over which the Company’s employees are expected to hold their options. The risk-free interest rate reflects the yield on zero-coupon U.S. treasury securities with a term equal to the option’s expected term. Expected volatility is derived based on the historical volatility of the Company’s stock. The Company’s projected dividend yield is zero. The Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair values of its stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards. Subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. The following table presents the weighted average assumptions used to estimate the fair value of stock option awards granted during the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Expected option term (in years) 6.0 6.0 Risk-free interest rate 2.7% 2.0% Expected volatility 35.0% 40.0% Weighted average exercise price $ 38.34 $ 37.97 Weighted average fair value at grant date $ 14.84 $ 15.71 Restricted Stock Units RSUs entitle the holder to shares of common stock after a vesting period that generally ranges from one to three years. The fair value of the awards is determined on the grant date based on the Company’s stock price. The following table summarizes the RSU activity (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Non-vested RSUs at December 31, 2017 2,279 $ 31.83 Granted 1,067 $ 38.34 Vested and shares issued (1,037 ) $ 30.62 Forfeited (92 ) $ 32.35 Non-vested RSUs at March 31, 2018 2,217 $ 35.51 Performance Share Units PSUs are stock awards in which the number of shares ultimately received by the employee depends on Company performance against specified targets. Such awards typically vest over three years and the number of shares issued can vary from 0% to 200% of the number of PSUs granted, depending on performance. The fair value of each PSU is determined on the date of grant based on the Company’s stock price. The ultimate number of shares issued and the related compensation cost recognized is based on the final performance metrics compared to the targets specified in the grants. The following table summarizes the PSU activity (in thousands, except per share data): Performance Share Units Weighted Average Grant Date Fair Value Per Share Non-vested PSUs at December 31, 2017 344 $ 26.75 Granted 172 $ 38.34 Vested and shares issued (202 ) $ 26.80 Forfeited (14 ) $ 24.94 Non-vested PSUs at March 31, 2018 300 $ 33.45 |
Background and Basis of Prese18
Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Balance Sheet as of March 31, 2018 and the Condensed Consolidated Statements of Operations and Comprehensive Income, Cash Flows and Stockholders’ Equity for the three months ended March 31, 2018 and 2017 are unaudited and reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for these interim periods are not necessarily indicative of the results of operations to be expected for any future period or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current year presentation. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The significant accounting policies followed by the Company are set forth in Note 2 within the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the 2017 Annual Report). Other than the changes described below to revenue recognition policies as a result of the adoption of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the satisfaction of distinct obligations to transfer goods and services to customers. The majority of the Company’s revenue is from product sales. Revenue from product sales is recognized when control is transferred to the customer, typically upon either shipment or delivery. A minor portion of the Company’s revenue is derived from project contracts containing a combination of product and service obligations. Revenue from project contracts is recognized at either a point in time or over time using cost input methods, based on the specific terms of each contract. For project contracts containing multiple distinct performance obligations, the transaction price is allocated based on the relative standalone estimated selling price of each performance obligation. The relative standalone selling price is determined using current price lists and observable pricing in separate contracts with similar customers. For performance obligations recognized over-time, judgment is required to evaluate assumptions, including the total estimated costs to determine progress towards contract completion and to calculate the corresponding amount of revenue to recognize. If estimated total costs on any contract are greater than the net contract revenues, the entire estimated loss is recognized in the period the loss becomes known. The cumulative effects on revenue from revisions to total estimated costs are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The Company also recognizes revenue from other customer contract types, including licensing of intellectual property, software licensing and post-contact support (PCS) which may be sold as part of a bundled product offering or as a separate contract. For bundled product arrangements, the transaction price is allocated based on the relative standalone estimated selling price of each performance obligation. Distinct intellectual property obligations, including software, are considered functional in nature and are recognized as revenue at the point in time the customer receives the rights to use and benefit from the intellectual property or are determined using a usage-based royalty. PCS obligations are typically recognized over the term of the contract. Revenue is measured based on the consideration to which the Company expects to be entitled, based on customer contracts. For sales to distributors, system integrators and value-added resellers (primarily for the CommScope Connectivity Solutions (CCS) segment), revenue is adjusted for variable consideration amounts, including estimated discounts, returns, rebates and distributor price protection programs. 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. The Company records a contract asset for unbilled accounts receivable related to revenue that has been recognized in advance of consideration being unconditionally due from the customer, which is common for certain project contract obligations. Contract asset amounts are transferred to accounts receivable when the Company’s right to the consideration becomes unconditional, which varies by contract, but is generally based on achieving certain acceptance milestones. 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 project or services arrangements. |
Concentrations of Risk and Related Party Transactions | Concentrations of Risk and Related Party Transactions Net sales to Anixter International Inc. and its affiliates (Anixter) accounted for 10% of the Company’s total net sales during both the three months ended March 31, 2018 and 2017. Sales to Anixter primarily originate within the CCS segment. Other than Anixter, no direct customer accounted for 10% or more of the Company’s total net sales for the three months ended March 31, 2018 or 2017. No direct customer accounted for 10% or more of the Company’s accounts receivable as of March 31, 2018. |
Product Warranties | Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over periods ranging from one to twenty-five years from the date of sale, depending upon the product subject to the warranty. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in other accrued liabilities: Three Months Ended March 31, 2018 2017 Product warranty accrual, beginning of period $ 16,928 $ 21,631 Provision for warranty claims 1,420 2,202 Warranty claims paid (2,217 ) (3,618 ) Foreign exchange 19 (35 ) Product warranty accrual, end of period $ 16,150 $ 20,180 |
Commitments and Contingencies | Commitments and Contingencies The Company is either a plaintiff or a defendant in certain pending legal matters in the normal course of business. Management believes none of these legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. |
Asset Impairments | Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of the reporting unit may exceed its fair value. There were no goodwill impairments identified during the three months ended March 31, 2018 or 2017. Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are carried at estimated fair value. Equity investments without readily determinable fair values are evaluated each reporting period for impairment based on a qualitative assessment, and they are then measured at fair value if impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three months ended March 31, 2018 or 2017. |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted tax reform legislation that reduced the corporate income tax rate from 35% to 21% and included a broad range of complex provisions affecting the taxation of businesses. Generally, financial statement recognition of the new legislation would be required to be completed in the period of enactment; however, in response to the complexities of this new legislation, the Securities and Exchange Commission (SEC) staff issued Staff Accounting Bulletin No. 118 to provide companies with transitional relief. Specifically, when the initial accounting for items under the new legislation is incomplete, the guidance allows the recognition of provisional amounts when reasonable estimates can be made or the continued application of the prior tax law if a reasonable estimate of the effect cannot be made. The SEC staff has provided up to one year from the date of enactment for companies to finalize the accounting for the effects of this new legislation. Although no changes were made to the provisional amounts during the three months ended March 31, 2018, the Company expects to refine the calculations as additional analysis is completed and as a more thorough understanding of the new tax law is reached. The changes made could be material to income tax expense. The effective income tax rate of 27.2% for the three months ended March 31, 2018 was higher than the statutory rate of 21.0% primarily due to the effect of the provision for state income taxes, the impact of earnings in foreign jurisdictions that are taxed at rates higher than the United States (U.S.) statutory rate, the impact of the new U.S. anti-deferral provisions and the impact of repatriation taxes. These increases to the effective tax rate were partially offset by the favorable impact of $4.3 million of excess tax benefits related to equity-based compensation awards. The effective income tax rate of 6.6% for the three months ended March 31, 2017 was significantly lower than the statutory rate of 35.0% primarily due to the favorable impact of $8.7 million of excess tax benefits related to equity-based compensation awards. The effective income tax rate was also favorably affected by the impact of earnings in foreign jurisdictions that the Company did not plan to repatriate. These earnings were generally taxed at rates lower than the U.S. statutory rate. Offsetting these decreases for the three months ended March 31, 2017 was the effect of the provision for state income taxes. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is based on net income divided by the weighted average number of common shares outstanding plus the effect of potentially dilutive common shares using the treasury stock method. Potentially dilutive common shares include outstanding equity-based awards (stock options, restricted stock units and performance share units). Certain outstanding equity-based awards were not included in the computation of diluted earnings per share because the effect was either antidilutive or the performance conditions were not met (0.5 million shares and 0.4 million shares for the three months ended March 31, 2018 and 2017, respectively). The following table presents the basis for the earnings per share computations (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Numerator: Net income for basic and diluted earnings per share $ 33,735 $ 33,562 Denominator: Weighted average common shares outstanding - basic 191,366 194,068 Dilutive effect of equity-based awards 4,093 5,072 Weighted average common shares outstanding - diluted 195,459 199,140 Earnings per share: Basic $ 0.18 $ 0.17 Diluted $ 0.17 $ 0.17 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted During the Three Months Ended March 31, 2018 The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, Revenue recognition for the Company’s product sales remained generally consistent with historical practice. However, the adoption of ASU No. 2014-09 resulted in acceleration of revenue recognition for certain project contracts containing integrated product and service obligations, primarily within the CommScope Mobility Solutions (CMS) segment. These multi-element revenue contracts represented less than 1% of total net sales for the three months ended March 31, 2018. For these contracts, certain performance obligations are recognized over time using cost-based input methods, which recognize revenue and cost of sales based on the relationship between actual costs incurred compared to the total estimated cost for the contract. Based on customer-specific contracts in effect at January 1, 2018, the Company recorded a cumulative effect adjustment, net of tax, of $3.4 million that reduces the accumulated deficit on the Condensed Consolidated Balance Sheets. This adjustment reflects an acceleration of revenues of $8.0 million. The impact of adoption of the new revenue recognition standard on our condensed consolidated financial statements was as follows: Three Months Ended March 31, 2018 As Reported Amounts Without Adoption of ASU No. 2014-09 Effect of Change Increase / (Decrease) Net sales $ 1,120,517 $ 1,122,257 $ (1,740 ) Cost of sales 709,117 708,897 220 Operating income 103,726 105,686 (1,960 ) Income tax expense 12,601 13,114 (513 ) Net income 33,735 35,182 (1,447 ) As of March 31, 2018 As Reported Amounts Without Adoption of ASU No. 2014-09 Effect of Change Increase / (Decrease) Assets: Accounts receivable, less allowance for doubtful accounts $ 984,847 $ 980,187 $ 4,660 Inventories, net 470,946 474,556 (3,610 ) Liabilities: Other accrued liabilities 301,380 302,297 (917 ) Equity: Retained earnings (accumulated deficit) (356,259 ) (358,226 ) 1,967 The Company adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (except those accounted for under the equity method of accounting) The Company adopted ASU No. 2016-16, Accounting for Income Taxes, Intra-Entity Asset Transfers of Assets Other than Inventory, The Company adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The Company adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities Issued but Not Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test of Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU No. 2016-02, Leases supersedes the current leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize assets and lease liabilities for the rights and obligations created by leased assets previously classified as operating leases |
Background and Basis of Prese19
Background and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [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 other accrued liabilities: Three Months Ended March 31, 2018 2017 Product warranty accrual, beginning of period $ 16,928 $ 21,631 Provision for warranty claims 1,420 2,202 Warranty claims paid (2,217 ) (3,618 ) Foreign exchange 19 (35 ) Product warranty accrual, end of period $ 16,150 $ 20,180 |
Summary of Earnings, Weighted Average Common Shares and Potential Common Shares Outstanding | The following table presents the basis for the earnings per share computations (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Numerator: Net income for basic and diluted earnings per share $ 33,735 $ 33,562 Denominator: Weighted average common shares outstanding - basic 191,366 194,068 Dilutive effect of equity-based awards 4,093 5,072 Weighted average common shares outstanding - diluted 195,459 199,140 Earnings per share: Basic $ 0.18 $ 0.17 Diluted $ 0.17 $ 0.17 |
Summary of New Revenue Recognition Standard on Condensed Consolidated Financial Statements | The impact of adoption of the new revenue recognition standard on our condensed consolidated financial statements was as follows: Three Months Ended March 31, 2018 As Reported Amounts Without Adoption of ASU No. 2014-09 Effect of Change Increase / (Decrease) Net sales $ 1,120,517 $ 1,122,257 $ (1,740 ) Cost of sales 709,117 708,897 220 Operating income 103,726 105,686 (1,960 ) Income tax expense 12,601 13,114 (513 ) Net income 33,735 35,182 (1,447 ) As of March 31, 2018 As Reported Amounts Without Adoption of ASU No. 2014-09 Effect of Change Increase / (Decrease) Assets: Accounts receivable, less allowance for doubtful accounts $ 984,847 $ 980,187 $ 4,660 Inventories, net 470,946 474,556 (3,610 ) Liabilities: Other accrued liabilities 301,380 302,297 (917 ) Equity: Retained earnings (accumulated deficit) (356,259 ) (358,226 ) 1,967 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cable Exchange [Member] | |
Preliminary Allocation of Purchase Price | The preliminary allocation of the purchase price, based on estimates of the fair values of the assets acquired and liabilities assumed, is as follows (in millions): Estimated Fair Value Cash and cash equivalents $ 3.5 Accounts receivable 6.4 Inventory 4.4 Property, plant and equipment 0.9 Goodwill 49.6 Identifiable intangible assets 61.1 Less: Liabilities assumed (2.7 ) Net acquisition cost $ 123.2 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segment | The following table presents goodwill by reportable segment (in millions): CCS CMS Total Goodwill, gross at December 31, 2017 $ 2,193.2 $ 904.4 $ 3,097.6 Foreign exchange 14.3 0.1 14.4 Goodwill, gross at March 31, 2018 2,207.5 904.5 3,112.0 Accumulated impairment charges at December 31, 2017 and March 31, 2018 (51.5 ) (159.5 ) (211.0 ) Goodwill, net at March 31, 2018 $ 2,156.0 $ 745.0 $ 2,901.0 |
Supplemental Financial Statem22
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Net Sales by Reportable Segment Disaggregated Based on Contract Type | The following table presents net sales by reportable segment, disaggregated based on contract type (in millions): Three Months Ended March 31, 2018 CCS CMS Total Contract type: Product contracts $ 671.5 $ 425.3 $ 1,096.8 Project contracts — 10.5 10.5 Other contracts 2.1 11.1 13.2 Consolidated net sales $ 673.6 $ 446.9 $ 1,120.5 |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Three Months Ended March 31, 2018 2017 Allowance for doubtful accounts, beginning of period $ 13,976 $ 17,211 Charged to costs and expenses 1,466 812 Deductions (1) (335 ) 80 Allowance for doubtful accounts, end of period $ 15,107 $ 18,103 (1) Uncollectible customer accounts written off, net of recoveries of previously written off customer accounts. |
Summary of the Balance Sheet Location and Amounts of Contract Assets and Liabilities from Contracts with Customers | The following table provides the balance sheet location and amounts of contract assets and liabilities from contracts with customers as of March 31, 2018 and December 31, 2017. Balance Sheet Location March 31, 2018 December 31, 2017 Unbilled accounts receivable Accounts receivable, less allowance for doubtful accounts $ 4,900 $ — Deferred revenue Other accrued liabilities 12,716 12,611 |
Inventories | Inventories March 31, 2018 December 31, 2017 Raw materials $ 137,902 $ 126,558 Work in process 105,390 98,526 Finished goods 227,654 219,857 $ 470,946 $ 444,941 |
Other Accrued Liabilities | Other Accrued Liabilities March 31, 2018 December 31, 2017 Compensation and employee benefit liabilities $ 93,021 $ 97,522 Accrued interest 48,876 23,485 Deferred revenue 12,716 12,611 Product warranty accrual 16,150 16,928 Restructuring reserve 15,793 24,961 Income taxes payable 14,354 16,949 Purchase price payable 12,655 2,098 Value-added taxes payable 11,980 11,838 Accrued professional fees 7,496 10,224 Other 68,339 70,364 $ 301,380 $ 286,980 |
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table presents changes in accumulated other comprehensive income (AOCI), net of tax, and accumulated other comprehensive loss (AOCL), net of tax: Three Months Ended March 31, 2018 2017 Foreign currency translation Balance at beginning of period $ (52,770 ) $ (254,148 ) Other comprehensive income 46,785 40,084 Amounts reclassified from AOCL — 267 Balance at end of period $ (5,985 ) $ (213,797 ) Net investment hedge Balance at beginning of period $ (4,981 ) $ — Other comprehensive loss (598 ) (355 ) Balance at end of period $ (5,579 ) $ (355 ) Defined benefit plan activity Balance at beginning of period $ (28,852 ) $ (33,473 ) Amounts reclassified from AOCL (1,432 ) (369 ) Balance at end of period $ (30,284 ) $ (33,842 ) Available-for-sale securities Balance at beginning of period $ — $ 2,508 Other comprehensive income — 1,698 Amounts reclassified from AOCI — (389 ) Balance at end of period $ — $ 3,817 Net AOCL at end of period $ (41,848 ) $ (244,177 ) |
Cash Flow Information | Cash Flow Information Three Months Ended March 31, 2018 2017 Cash paid during the period for: Income taxes, net of refunds $ 22,056 $ 17,006 Interest 31,907 16,643 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Debt | March 31, 2018 December 31, 2017 5.00% senior notes due March 2027 $ 750,000 $ 750,000 6.00% senior notes due June 2025 1,500,000 1,500,000 5.50% senior notes due June 2024 650,000 650,000 5.00% senior notes due June 2021 650,000 650,000 Senior secured term loan due December 2022 886,250 886,250 Senior secured revolving credit facility expires May 2020 — — Total principal amount of debt $ 4,436,250 $ 4,436,250 Less: Original issue discount, net of amortization (3,236 ) (3,389 ) Less: Debt issuance costs, net of amortization (61,193 ) (63,460 ) Total long-term debt $ 4,371,821 $ 4,369,401 |
Derivatives and Hedging Activ24
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: Fair Value of Asset (Liability) Balance Sheet Location March 31, 2018 December 31, 2017 Foreign currency contracts Prepaid expenses and other current assets $ 10,724 $ 9,050 Foreign currency contracts Other accrued liabilities (580 ) (574 ) Total derivatives not designated as hedging instruments $ 10,144 $ 8,476 |
Pretax Impact of Foreign Currency Forward Contracts, Both Matured and Outstanding, not Designated as Hedging Instruments | The pretax impact of these foreign currency forward contracts, both matured and outstanding, on the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows: Foreign Currency Forward Contracts Location of Gain Gain Recognized Three Months Ended March 31, 2018 Other income (expense), net $ 11,880 Three Months Ended March 31, 2017 Other income (expense), net 1,855 |
Derivative Instruments Designated as Net Investment Hedge [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 net investment hedges: Fair Value of Asset (Liability) Balance Sheet Location March 31, 2018 December 31, 2017 Foreign currency contracts Prepaid expenses and other current assets $ 284 $ — Foreign currency contracts Other accrued liabilities (1,116 ) (403 ) Total derivatives designated as net investment hedging instruments $ (832 ) $ (403 ) |
After Tax Impact of Effective Portion of Foreign Currency Forward Contracts, Designated as Net Investment Hedging Instruments | The after-tax impact of the effective portion of the forward contracts designated as net investment hedging instruments, both matured and outstanding, on the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows: Foreign Currency Forward Contracts Location of Loss Effective Portion of Loss Recognized Three Months Ended March 31, 2018 Other comprehensive income, net of tax $ (598 ) Three Months Ended March 31, 2017 Other comprehensive income, net of tax (355 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Available-for-Sale Securities, Foreign Currency Contracts and Debt Instruments | The carrying amounts, estimated fair values and valuation input levels of the Company’s foreign currency contracts and debt instruments as of March 31, 2018 and December 31, 2017, are as follows: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Valuation Inputs Assets: Foreign currency contracts $ 11,008 $ 11,008 $ 9,050 $ 9,050 Level 2 Liabilities: 5.00% senior notes due 2027 750,000 714,375 750,000 753,750 Level 2 6.00% senior notes due 2025 1,500,000 1,557,600 1,500,000 1,591,800 Level 2 5.50% senior notes due 2024 650,000 663,000 650,000 676,780 Level 2 5.00% senior notes due 2021 650,000 658,125 650,000 661,375 Level 2 Senior secured term loan due 2022, at par 886,250 890,127 886,250 892,343 Level 2 Foreign currency contracts 1,696 1,696 977 977 Level 2 |
Segments and Geographic Infor26
Segments and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment | The following table provides summary financial information by reportable segment (in millions): March 31, 2018 December 31, 2017 Identifiable segment-related assets: CCS $ 4,573.9 $ 4,546.0 CMS 2,058.0 1,995.8 Total identifiable segment-related assets 6,631.9 6,541.8 Reconciliation to total assets: Cash and cash equivalents 472.7 454.0 Deferred income tax assets 45.9 45.9 Total assets $ 7,150.5 $ 7,041.7 |
Summary of Net Sales, Adjusted Operating Income, Depreciation Expense and Additions to PP&E by Reportable Segment | The following table provides net sales, adjusted operating income, depreciation expense and additions to property, plant and equipment by reportable segment (in millions): Three Months Ended March 31, 2018 2017 Net sales: CCS $ 673.6 $ 681.6 CMS 446.9 455.7 Consolidated net sales $ 1,120.5 $ 1,137.3 Segment adjusted operating income: CCS $ 108.7 $ 114.5 CMS 79.9 101.4 Total segment adjusted operating income 188.6 215.9 Amortization of intangible assets (67.2 ) (67.6 ) Restructuring costs, net (5.5 ) (5.4 ) Equity-based compensation (10.5 ) (9.4 ) Integration and transaction costs (1.7 ) (13.5 ) Consolidated operating income $ 103.7 $ 120.0 Depreciation expense: CCS $ 14.1 $ 14.4 CMS 5.5 5.6 Consolidated depreciation expense $ 19.6 $ 20.0 Additions to property, plant and equipment: CCS $ 8.8 $ 8.8 CMS 4.8 4.1 Consolidated additions to property, plant and equipment $ 13.6 $ 12.9 |
Summary of Sales by Geographic Region, Based on Destination of Product Shipments | Sales by geographic region, based on the destination of product shipments, were as follows (in millions): Three Months Ended March 31, 2018 2017 United States $ 607.5 $ 648.3 Europe, Middle East and Africa 249.7 231.8 Asia Pacific 188.6 181.9 Caribbean and Latin America 56.1 58.8 Canada 18.6 16.5 Consolidated net sales $ 1,120.5 $ 1,137.3 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Company's Net Pretax Restructuring Charges | The Company’s net pretax restructuring charges by segment were as follows: Three Months Ended March 31, 2018 2017 CCS $ 2,370 $ 4,757 CMS 3,080 631 Total $ 5,450 $ 5,388 |
Restructuring Reserves Included in Company's Condensed Consolidated Balance Sheets | Restructuring reserves were included in the Company’s Condensed Consolidated Balance Sheets as follows: March 31, 2018 December 31, 2017 Other accrued liabilities $ 15,793 $ 24,961 Other noncurrent liabilities 6,077 7,036 Total liability $ 21,870 $ 31,997 |
BNS Integration Restructuring Plan [Member] | |
Activity within Liability Established for Restructuring Actions, Included in Other Accrued Liabilities | Employee- Related Costs Lease Termination Costs Fixed Asset Related Costs Total Balance at December 31, 2017 $ 25,588 $ 1,080 $ — $ 26,668 Additional charge recorded 3,938 658 790 5,386 Cash paid (13,692 ) (844 ) (146 ) (14,682 ) Consideration received — — 2,279 2,279 Foreign exchange and other non-cash items 263 10 (2,923 ) (2,650 ) Balance at March 31, 2018 $ 16,097 $ 904 $ — $ 17,001 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Pension Plans | Pension Plans Three Months Ended March 31, U.S. Plans Non-U.S. Plans 2018 2017 2018 2017 Service cost $ — $ — $ 1,164 $ 1,164 Interest cost 1,323 1,490 1,354 1,271 Recognized actuarial loss 120 164 320 367 Amortization of prior service cost — — 10 — Expected return on plan assets (1,597 ) (1,687 ) (2,004 ) (1,819 ) Net periodic benefit cost (income) $ (154 ) $ (33 ) $ 844 $ 983 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Income Statement Location of Equity-Based Compensation Expense | The following table shows the income statement location of equity-based compensation expense: Three Months Ended March 31, 2018 2017 Selling, general and administrative $ 8,038 $ 7,159 Cost of sales 1,333 1,197 Research and development 1,176 1,056 Total equity-based compensation expense $ 10,547 $ 9,412 |
Summary of Stock Option Activity | The following table summarizes the stock option activity (in thousands, except per share data): Shares Weighted Average Option Exercise Price Per Share Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Options outstanding at December 31, 2017 4,830 $ 13.01 Granted 444 $ 38.34 Exercised (331 ) $ 11.89 Forfeited (42 ) $ 33.38 Options outstanding at March 31, 2018 4,901 $ 15.21 4.5 $ 121,367 Options vested at March 31, 2018 4,050 $ 10.72 3.5 $ 118,432 Options unvested at March 31, 2018 851 $ 36.53 9.3 $ 2,935 |
Summary of Exercise Price | The exercise prices of outstanding options at March 31, 2018 were in the following ranges: Options Outstanding Options Exercisable Range of Exercise Prices Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Per Share Shares (in thousands) Weighted Average Exercise Price Per Share $2.96 to $5.74 2,542 2.7 $ 5.43 2,542 $ 5.43 $5.75 to $22.99 703 2.1 $ 8.58 703 $ 8.58 $23.00 to $42.32 1,656 8.3 $ 33.04 805 $ 29.30 $2.96 to $42.32 4,901 4.5 $ 15.21 4,050 $ 10.72 |
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 stock option awards granted during the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Expected option term (in years) 6.0 6.0 Risk-free interest rate 2.7% 2.0% Expected volatility 35.0% 40.0% Weighted average exercise price $ 38.34 $ 37.97 Weighted average fair value at grant date $ 14.84 $ 15.71 |
Summary of RSU Activity | The following table summarizes the RSU activity (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Non-vested RSUs at December 31, 2017 2,279 $ 31.83 Granted 1,067 $ 38.34 Vested and shares issued (1,037 ) $ 30.62 Forfeited (92 ) $ 32.35 Non-vested RSUs at March 31, 2018 2,217 $ 35.51 |
Summary of PSU Activity | The following table summarizes the PSU activity (in thousands, except per share data): Performance Share Units Weighted Average Grant Date Fair Value Per Share Non-vested PSUs at December 31, 2017 344 $ 26.75 Granted 172 $ 38.34 Vested and shares issued (202 ) $ 26.80 Forfeited (14 ) $ 24.94 Non-vested PSUs at March 31, 2018 300 $ 33.45 |
Background and Basis of Prese30
Background and Basis of Presentation - Additional Information (Detail) shares in Millions | Dec. 22, 2017 | Mar. 31, 2018USD ($)Customershares | Mar. 31, 2017USD ($)Customershares |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Product warranty term | These product warranties extend over periods ranging from one to twenty-five years from the date of sale, depending upon the product subject to the warranty. | ||
Goodwill impairment charges | $ 0 | $ 0 | |
Intangible asset impairment charges, excluding goodwill | 0 | 0 | |
Other long-Lived assets Impairments | $ 0 | $ 0 | |
Statutory tax rate | 21.00% | 35.00% | |
Effective income tax rate | 27.20% | 6.60% | |
Impact of recent accounting pronouncements | $ 4,300,000 | $ 8,700,000 | |
Net periodic benefit cost (income) | 1,100,000 | ||
Other Income (Expense), Net [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Net periodic benefit cost (income) | 2,300,000 | ||
Operating Income [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Net periodic benefit cost (income) | 1,200,000 | ||
ASU No. 2014-09 [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Cumulative effect on retained earnings (accumulated deficit), net of tax | 3,400,000 | ||
ASU No. 2014-09 [Member] | Revenue [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Adjustment for new accounting pronouncement | 8,000,000 | ||
ASU No. 2016-16 [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Cumulative effect on retained earnings (accumulated deficit), net of tax | 2,600,000 | ||
ASU No. 2017-07 [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Impact on previously reported income before income taxes | $ 0 | ||
ASU No. 2017-07 [Member] | Reclassified Net Periodic Benefit Operating income From Operating Income And Other Expense [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Adjustment for new accounting pronouncement | $ 1,400,000 | ||
Stock Compensation Plan [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Amount of outstanding equity based awards not included in computation of diluted earnings per share | shares | 0.5 | 0.4 | |
U.S. Tax Reform Legislation [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Statutory tax rate | 21.00% | ||
Minimum [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Product warranties expiration term | 1 year | ||
Maximum [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Product warranties expiration term | 25 years | ||
Maximum [Member] | U.S. Tax Reform Legislation [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Measurement period to finalize recording of related tax impacts | 1 year | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Anixter International Inc. [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Other Customers [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Other direct customer accounted for 10% or more of the Company's total net sales | Customer | 0 | 0 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Anixter International Inc. [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Other Customers [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Other direct customer accounted for 10% or more of the Company's total net sales | Customer | 0 | ||
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Maximum [Member] | ASU No. 2014-09 [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Concentration risk percentage | 1.00% |
Background and Basis of Prese31
Background and Basis of Presentation - Summary of Activity in Product Warranty Accrual, Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Product warranty accrual, beginning of period | $ 16,928 | $ 21,631 |
Provision for warranty claims | 1,420 | 2,202 |
Warranty claims paid | (2,217) | (3,618) |
Foreign exchange | 19 | (35) |
Product warranty accrual, end of period | $ 16,150 | $ 20,180 |
Background and Basis of Prese32
Background and Basis of Presentation - Summary of Earnings, Weighted Average Common Shares and Potential Common Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income for basic and diluted earnings per share | $ 33,735 | $ 33,562 |
Denominator: | ||
Weighted average common shares outstanding - basic | 191,366 | 194,068 |
Dilutive effect of equity-based awards | 4,093 | 5,072 |
Weighted average common shares outstanding - diluted | 195,459 | 199,140 |
Earnings per share: | ||
Basic | $ 0.18 | $ 0.17 |
Diluted | $ 0.17 | $ 0.17 |
Background and Basis of Prese33
Background and Basis of Presentation - Summary of New Revenue Recognition Standard on Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Net sales | $ 1,120,517 | $ 1,137,285 | |
Cost of sales | 709,117 | 683,478 | |
Operating income | 103,726 | 119,972 | |
Income tax expense | 12,601 | 2,373 | |
Net income | 33,735 | $ 33,562 | |
Assets | |||
Accounts receivable, less allowance for doubtful accounts | 984,847 | $ 898,829 | |
Inventories, net | 470,946 | 444,941 | |
Liabilities: | |||
Other accrued liabilities | 301,380 | 286,980 | |
Stockholders' equity: | |||
Retained earnings (accumulated deficit) | (356,259) | $ (395,998) | |
Amounts Without Adoption of ASU No. 2014-09 [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Net sales | 1,122,257 | ||
Cost of sales | 708,897 | ||
Operating income | 105,686 | ||
Income tax expense | 13,114 | ||
Net income | 35,182 | ||
Assets | |||
Accounts receivable, less allowance for doubtful accounts | 980,187 | ||
Inventories, net | 474,556 | ||
Liabilities: | |||
Other accrued liabilities | 302,297 | ||
Stockholders' equity: | |||
Retained earnings (accumulated deficit) | (358,226) | ||
ASU No. 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Net sales | (1,740) | ||
Cost of sales | 220 | ||
Operating income | (1,960) | ||
Income tax expense | (513) | ||
Net income | (1,447) | ||
Assets | |||
Accounts receivable, less allowance for doubtful accounts | 4,660 | ||
Inventories, net | (3,610) | ||
Liabilities: | |||
Other accrued liabilities | (917) | ||
Stockholders' equity: | |||
Retained earnings (accumulated deficit) | $ 1,967 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Cable Exchange [Member] $ in Millions | Aug. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Total consideration transferred, amount | $ 108.7 |
Cash paid for acquired assets and assumed liabilities | $ 105.2 |
Business acquisition date | Aug. 1, 2017 |
Cash payment due | $ 14.5 |
Acquisitions - Preliminary Allo
Acquisitions - Preliminary Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Goodwill | $ 2,900,958 | $ 2,886,630 |
Cable Exchange [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 3,500 | |
Accounts receivable | 6,400 | |
Inventory | 4,400 | |
Property, plant and equipment | 900 | |
Goodwill | 49,600 | |
Identifiable intangible assets | 61,100 | |
Less: Liabilities assumed | (2,700) | |
Net acquisition cost | $ 123,200 |
Goodwill - Goodwill by Reportab
Goodwill - Goodwill by Reportable Segment (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Line Items] | |
Goodwill, gross, Beginning balance | $ 3,097,600 |
Foreign exchange | 14,400 |
Goodwill, gross, Ending balance | 3,112,000 |
Accumulated impairment charges, Beginning balance | (211,000) |
Goodwill, net | 2,900,958 |
CCS [Member] | |
Goodwill [Line Items] | |
Goodwill, gross, Beginning balance | 2,193,200 |
Foreign exchange | 14,300 |
Goodwill, gross, Ending balance | 2,207,500 |
Accumulated impairment charges, Beginning balance | (51,500) |
Goodwill, net | 2,156,000 |
CMS [Member] | |
Goodwill [Line Items] | |
Goodwill, gross, Beginning balance | 904,400 |
Foreign exchange | 100 |
Goodwill, gross, Ending balance | 904,500 |
Accumulated impairment charges, Beginning balance | (159,500) |
Goodwill, net | $ 745,000 |
Supplemental Financial Statem37
Supplemental Financial Statement Information - Schedule of Net Sales by Reportable Segment Disaggregated Based on Contract Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | $ 1,120,517 | $ 1,137,285 |
CCS [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 673,600 | 681,600 |
CMS [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 446,900 | $ 455,700 |
Product Contracts [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 1,096,800 | |
Product Contracts [Member] | CCS [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 671,500 | |
Product Contracts [Member] | CMS [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 425,300 | |
Project Contracts [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 10,500 | |
Project Contracts [Member] | CMS [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 10,500 | |
Other Contracts [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 13,200 | |
Other Contracts [Member] | CCS [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | 2,100 | |
Other Contracts [Member] | CMS [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Consolidated net sales | $ 11,100 |
Supplemental Financial Statem38
Supplemental Financial Statement Information - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts Notes And Loans Receivable Classified [Abstract] | ||
Allowance for doubtful accounts, beginning of period | $ 13,976 | $ 17,211 |
Charged to costs and expenses | 1,466 | 812 |
Deductions | (335) | 80 |
Allowance for doubtful accounts, end of period | $ 15,107 | $ 18,103 |
Supplemental Financial Statem39
Supplemental Financial Statement Information - Summary of the Balance Sheet Location and Amounts of Contract Assets and Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable, Less Allowance for Doubtful Accounts [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Unbilled accounts receivable | $ 4,900 | |
Other Accrued Liabilities [Member] | ||
Schedule Of Contract Assets And Liabilities [Line Items] | ||
Deferred revenue | $ 12,716 | $ 12,611 |
Supplemental Financial Statem40
Supplemental Financial Statement Information - Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 137,902 | $ 126,558 |
Work in process | 105,390 | 98,526 |
Finished goods | 227,654 | 219,857 |
Inventories, net | $ 470,946 | $ 444,941 |
Supplemental Financial Statem41
Supplemental Financial Statement Information - Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities Current [Abstract] | ||||
Compensation and employee benefit liabilities | $ 93,021 | $ 97,522 | ||
Accrued interest | 48,876 | 23,485 | ||
Deferred revenue | 12,716 | 12,611 | ||
Product warranty accrual | 16,150 | 16,928 | $ 20,180 | $ 21,631 |
Restructuring reserve | 15,793 | 24,961 | ||
Income taxes payable | 14,354 | 16,949 | ||
Purchase price payable | 12,655 | 2,098 | ||
Value-added taxes payable | 11,980 | 11,838 | ||
Accrued professional fees | 7,496 | 10,224 | ||
Other | 68,339 | 70,364 | ||
Other Accrued Liabilities | $ 301,380 | $ 286,980 |
Supplemental Financial Statem42
Supplemental Financial Statement Information - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 1,647,826 | |
Ending balance | 1,731,357 | $ 1,404,023 |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (52,770) | (254,148) |
Other comprehensive income (loss) | 46,785 | 40,084 |
Amounts reclassified from AOCI | 267 | |
Ending balance | (5,985) | (213,797) |
Net Investment Hedge [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (4,981) | |
Other comprehensive income (loss) | (598) | (355) |
Ending balance | (5,579) | (355) |
Defined Benefit Plan Activity [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (28,852) | (33,473) |
Amounts reclassified from AOCI | (1,432) | (369) |
Ending balance | (30,284) | (33,842) |
Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 2,508 | |
Other comprehensive income (loss) | 1,698 | |
Amounts reclassified from AOCI | (389) | |
Ending balance | 3,817 | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (86,603) | (285,113) |
Ending balance | $ (41,848) | $ (244,177) |
Supplemental Financial Statem43
Supplemental Financial Statement Information - Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 22,056 | $ 17,006 |
Interest | $ 31,907 | $ 16,643 |
Financing - Summary of Debt (De
Financing - Summary of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total principal amount of debt | $ 4,436,250 | $ 4,436,250 |
Less: Original issue discount, net of amortization | (3,236) | (3,389) |
Less: Debt issuance costs, net of amortization | (61,193) | (63,460) |
Total long-term debt | 4,371,821 | 4,369,401 |
5.00% Senior Notes Due March 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 750,000 | 750,000 |
6.00% Senior Notes Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,500,000 | 1,500,000 |
5.50% Senior Notes Due June 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 650,000 | 650,000 |
5.00% Senior Notes Due June 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 650,000 | 650,000 |
Senior Secured Term Loan Due December 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loans | $ 886,250 | $ 886,250 |
Financing - Summary of Debt (Pa
Financing - Summary of Debt (Parenthetical) (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
5.00% Senior Notes Due March 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Mar. 31, 2027 | |
Interest rate | 5.00% | 5.00% |
6.00% Senior Notes Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 30, 2025 | |
Interest rate | 6.00% | 6.00% |
5.50% Senior Notes Due June 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 30, 2024 | |
Interest rate | 5.50% | 5.50% |
5.00% Senior Notes Due June 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 30, 2021 | |
Interest rate | 5.00% | 5.00% |
Senior Secured Term Loan Due December 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 31, 2022 | |
Senior Secured Revolving Credit Facility Expires May 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | May 31, 2020 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Total assets | $ 7,150,467,000 | $ 7,041,666,000 | |
Total liabilities | 5,419,110,000 | $ 5,393,840,000 | |
Net sales | $ 1,120,517,000 | $ 1,137,285,000 | |
Weighted average effective interest rate | 5.54% | 5.45% | |
Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Total assets | $ 2,636,000,000 | $ 2,587,000,000 | |
Total liabilities | 547,000,000 | 569,000,000 | |
Net sales | $ 464,000,000 | $ 440,000,000 | |
Assets, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Concentration risk percentage | 37.00% | 37.00% | |
Liabilities, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Concentration risk percentage | 10.00% | 11.00% | |
Sales Revenue, Net [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Concentration risk percentage | 41.00% | 39.00% | |
Asset Based Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured credit facilities current borrowed amount | $ 0 | ||
Senior secured credit facilities current borrowing capacity | $ 437,200,000 | ||
5.00% Senior Notes Due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.00% | 5.00% | |
6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | 6.00% | |
5.00% Senior Notes Due June 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.00% | 5.00% | |
Senior Notes [Member] | 5.00% Senior Notes Due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.00% | ||
Senior Notes [Member] | 6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | ||
Senior Notes [Member] | 5.50% Senior Notes Due June 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | ||
Senior Notes [Member] | 5.00% Senior Notes Due June 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.00% |
Derivatives and Hedging Activ47
Derivatives and Hedging Activities - Additional Information (Detail) - Foreign Currency Contracts [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Not Designated as Hedging Instrument [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 393 |
Not Designated as Hedging Instrument [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Maturities ranging | 11 months |
Derivative Instruments Designated as Net Investment Hedge [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 80 |
Derivative Instruments Designated as Net Investment Hedge [Member] | Other Income (Expense) [Member] | ASU No. 2017-12 [Member] | |
Derivatives, Fair Value [Line Items] | |
Pretax income from amortization of spot forward differences | $ 0.3 |
Derivative Instruments Designated as Net Investment Hedge [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Maturities ranging | 9 months |
Derivatives and Hedging Activ48
Derivatives and Hedging Activities - Balance Sheet Location and Fair Value of the Company's Derivatives (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ 10,144 | $ 8,476 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | 10,724 | 9,050 |
Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | (580) | (574) |
Derivative Instruments Designated as Net Investment Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | (832) | (403) |
Derivative Instruments Designated as Net Investment Hedge [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | 284 | |
Derivative Instruments Designated as Net Investment Hedge [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | $ (1,116) | $ (403) |
Derivatives and Hedging Activ49
Derivatives and Hedging Activities - Pretax Impact of Foreign Currency Forward Contracts, Both Matured and Outstanding, not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income (Expense), Net [Member] | Foreign Currency Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Recognized on Foreign Currency Forward Contracts | $ 11,880 | $ 1,855 |
Derivatives and Hedging Activ50
Derivatives and Hedging Activities - After Tax Impact of Effective Portion of Foreign Currency Forward Contracts, Designated as Net Investment Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Foreign Currency Contracts [Member] | Derivative Instruments Designated as Net Investment Hedge [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effective Portion of Loss Recognized on Foreign Currency Forward Contracts | $ (598) | $ (355) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Available-for-Sale Securities, Foreign Currency Contracts and Debt Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | $ 11,008 | $ 9,050 |
Carrying Amount [Member] | Other Accrued Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 1,696 | 977 |
Fair Value [Member] | Prepaid Expenses and Other Current Assets [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 11,008 | 9,050 |
Fair Value [Member] | Other Accrued Liabilities [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 1,696 | 977 |
5.00% Senior Notes Due 2027 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 750,000 | 750,000 |
5.00% Senior Notes Due 2027 [Member] | Fair Value [Member] | Long Term Debt Noncurrent [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 714,375 | 753,750 |
6.00% Senior Notes Due June 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,500,000 | 1,500,000 |
6.00% Senior Notes Due June 2025 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,500,000 | 1,500,000 |
6.00% Senior Notes Due June 2025 [Member] | Fair Value [Member] | Long Term Debt Noncurrent [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,557,600 | 1,591,800 |
5.50% Senior Notes Due June 2024 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
5.50% Senior Notes Due June 2024 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
5.50% Senior Notes Due June 2024 [Member] | Fair Value [Member] | Long Term Debt Noncurrent [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 663,000 | 676,780 |
5.00% Senior Notes Due June 2021 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
5.00% Senior Notes Due June 2021 [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
5.00% Senior Notes Due June 2021 [Member] | Fair Value [Member] | Long Term Debt Noncurrent [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 658,125 | 661,375 |
Senior Secured Term Loan Due 2022, at Par [Member] | Carrying Amount [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured debt | 886,250 | 886,250 |
Senior Secured Term Loan Due 2022, at Par [Member] | Fair Value [Member] | Long Term Debt Noncurrent [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured term loans | $ 890,127 | $ 892,343 |
Segments and Geographic Infor52
Segments and Geographic Information - Summary of Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 7,150,467 | $ 7,041,666 | ||
Cash and cash equivalents | 472,733 | 453,977 | $ 437,637 | $ 428,228 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 6,631,900 | 6,541,800 | ||
Operating Segments [Member] | CCS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 4,573,900 | 4,546,000 | ||
Operating Segments [Member] | CMS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,058,000 | 1,995,800 | ||
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 472,700 | 454,000 | ||
Deferred income tax assets | $ 45,900 | $ 45,900 |
Segments and Geographic Infor53
Segments and Geographic Information - Summary of Net Sales, Adjusted Operating Income, Depreciation Expense and Additions to PP&E by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,120,517 | $ 1,137,285 |
Segment adjusted operating income | 188,600 | 215,900 |
Amortization of intangible assets | (67,229) | (67,638) |
Restructuring costs, net | (5,450) | (5,388) |
Equity-based compensation | (10,547) | (9,412) |
Integration and transaction costs | (1,700) | (13,500) |
Consolidated operating income | 103,726 | 119,972 |
Depreciation expense | 19,600 | 20,000 |
Additions to property, plant and equipment | 13,576 | 12,910 |
CCS [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 673,600 | 681,600 |
Segment adjusted operating income | 108,700 | 114,500 |
Restructuring costs, net | (2,370) | (4,757) |
Depreciation expense | 14,100 | 14,400 |
Additions to property, plant and equipment | 8,800 | 8,800 |
CMS [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 446,900 | 455,700 |
Segment adjusted operating income | 79,900 | 101,400 |
Restructuring costs, net | (3,080) | (631) |
Depreciation expense | 5,500 | 5,600 |
Additions to property, plant and equipment | $ 4,800 | $ 4,100 |
Segments and Geographic Infor54
Segments and Geographic Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Sales Revenue, Net [Member] | Customers Located Outside of the U.S [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 45.80% | 43.00% |
Segments and Geographic Infor55
Segments and Geographic Information - Summary of Sales by Geographic Region, Based on Destination of Product Shipments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 1,120,517 | $ 1,137,285 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 607,500 | 648,300 |
Europe, Middle East and Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 249,700 | 231,800 |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 188,600 | 181,900 |
Caribbean and Latin America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 56,100 | 58,800 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 18,600 | $ 16,500 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Company's Net Pretax Restructuring Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs, net | $ 5,450 | $ 5,388 |
CCS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs, net | 2,370 | 4,757 |
CMS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs, net | $ 3,080 | $ 631 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Reserves Included in Company's Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, current | $ 15,793 | $ 24,961 |
Ending balance | 21,870 | 31,997 |
Other Accrued Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, current | 15,793 | 24,961 |
Other Noncurrent Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, non-current | $ 6,077 | $ 7,036 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Liability for lease termination cost | $ 21,870,000 | $ 31,997,000 |
BNS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Cash payments | 13,000,000 | |
Recognized restructuring charges | 115,000,000 | |
2019 to 2022 [Member] | BNS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Additional cash payments | 4,000,000 | |
Cost Alignment Restructuring Plan [Member] | Lease Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability for lease termination cost | 4,900,000 | |
Cost Alignment Restructuring Plan [Member] | Remainder of 2018 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Cash payments | 1,400,000 | |
Cost Alignment Restructuring Plan [Member] | 2019 to 2022 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Additional cash payments | $ 3,500,000 |
Restructuring Costs - Activity
Restructuring Costs - Activity within Liability Established for Restructuring Actions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 31,997 | |
Additional charge recorded | 5,450 | $ 5,388 |
Ending balance | 21,870 | |
BNS Integration Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 26,668 | |
Additional charge recorded | 5,386 | |
Cash paid | (14,682) | |
Consideration received | 2,279 | |
Foreign exchange and other non-cash items | (2,650) | |
Ending balance | 17,001 | |
Employee-Related Costs [Member] | BNS Integration Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 25,588 | |
Additional charge recorded | 3,938 | |
Cash paid | (13,692) | |
Foreign exchange and other non-cash items | 263 | |
Ending balance | 16,097 | |
Lease Termination Costs [Member] | BNS Integration Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 1,080 | |
Additional charge recorded | 658 | |
Cash paid | (844) | |
Foreign exchange and other non-cash items | 10 | |
Ending balance | 904 | |
Fixed Asset Related Costs [Member] | BNS Integration Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Additional charge recorded | 790 | |
Cash paid | (146) | |
Consideration received | 2,279 | |
Foreign exchange and other non-cash items | $ (2,923) |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Pension Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost (income) | $ 1,100 | |
Pension Benefits [Member] | U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1,323 | $ 1,490 |
Recognized actuarial loss | 120 | 164 |
Expected return on plan assets | (1,597) | (1,687) |
Net periodic benefit cost (income) | (154) | (33) |
Pension Benefits [Member] | Non-U.S.Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,164 | 1,164 |
Interest cost | 1,354 | 1,271 |
Recognized actuarial loss | 320 | 367 |
Amortization of prior service cost | 10 | |
Expected return on plan assets | (2,004) | (1,819) |
Net periodic benefit cost (income) | $ 844 | $ 983 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | |
Pension Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's contribution to defined benefit plans | $ 1.1 | ||
Additional contribution amount for remaining fiscal period | 4.9 | ||
Pension Benefit Plans [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional contributions to annuity purchase for termination | 1 | ||
Pension Benefit Plans [Member] | Minimum [Member] | Other Income (Expense), Net [Member] | Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial gains (losses) | $ (25) | ||
Pension Benefit Plans [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional contributions to annuity purchase for termination | $ 3 | ||
Pension Benefit Plans [Member] | Maximum [Member] | Other Income (Expense), Net [Member] | Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial gains (losses) | $ (29) | ||
Other Postretirement Benefit Plans [Member] | Minimum [Member] | Other Income (Expense), Net [Member] | Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial gains (losses) and prior service credits | $ 9 | ||
Other Postretirement Benefit Plans [Member] | Maximum [Member] | Other Income (Expense), Net [Member] | Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial gains (losses) and prior service credits | $ 10 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Mar. 31, 2018 | Aug. 03, 2017 |
Stockholders Equity [Line Items] | |||
Unrecognized compensation costs related to unvested stock options, restricted stock units (RSUs) and performance share units (PSUs) | $ 95,000,000 | $ 95,000,000 | |
Recognition period of unrecognized compensation expense | 1 year 8 months 12 days | ||
Capitalized equity-based compensation costs | 0 | ||
Stock Options [Member] | |||
Stockholders Equity [Line Items] | |||
Vesting period, year | 3 years | ||
Contractual term | 10 years | ||
Projected dividend yield | 0.00% | ||
Performance Shares [Member] | |||
Stockholders Equity [Line Items] | |||
Vesting period, year | 3 years | ||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Stockholders Equity [Line Items] | |||
Vesting period, year | 3 years | ||
Maximum [Member] | Performance Shares [Member] | |||
Stockholders Equity [Line Items] | |||
Number of shares issued on performance | 200.00% | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Stockholders Equity [Line Items] | |||
Vesting period, year | 1 year | ||
Minimum [Member] | Performance Shares [Member] | |||
Stockholders Equity [Line Items] | |||
Number of shares issued on performance | 0.00% | ||
August 2, 2017, Stock Repurchase Program [Member] | |||
Stockholders Equity [Line Items] | |||
Number of shares repurchased | 0 | ||
Remaining amount authorized under repurchase program | $ 25,000,000 | $ 25,000,000 | |
Repurchase authorization expiration date | Jul. 31, 2018 | ||
August 2, 2017, Stock Repurchase Program [Member] | Maximum [Member] | |||
Stockholders Equity [Line Items] | |||
Common stock amount authorized under repurchase program | $ 100,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Income Statement Location of Equity-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total equity-based compensation expense | $ 10,547 | $ 9,412 |
Selling, General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total equity-based compensation expense | 8,038 | 7,159 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total equity-based compensation expense | 1,333 | 1,197 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total equity-based compensation expense | $ 1,176 | $ 1,056 |
Stockholders' Equity - Summar64
Stockholders' Equity - Summary of Stock Option Activity (Detail) - Non Qualified Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Options Beginning Balance | shares | 4,830 |
Shares, Granted | shares | 444 |
Shares, Exercised | shares | (331) |
Shares, Forfeited | shares | (42) |
Shares, Options Ending Balance | shares | 4,901 |
Shares, Options vested Ending Balance | shares | 4,050 |
Shares, Options unvested Ending Balance | shares | 851 |
Weighted Average Option Exercise Price Per Share, Options Beginning Balance | $ / shares | $ 13.01 |
Weighted Average Option Exercise Price Per Share, Granted | $ / shares | 38.34 |
Weighted Average Option Exercise Price Per Share, Exercised | $ / shares | 11.89 |
Weighted Average Option Exercise Price Per Share, Forfeited | $ / shares | 33.38 |
Weighted Average Option Exercise Price Per Share, Options Ending Balance | $ / shares | 15.21 |
Weighted Average Option Exercise Price Per Share, Options vested Ending Balance | $ / shares | 10.72 |
Weighted Average Option Exercise Price Per Share, Options unvested Ending Balance | $ / shares | $ 36.53 |
Weighted Average Remaining Contractual Term in Years, Options outstanding | 4 years 6 months |
Weighted Average Remaining Contractual Term in Years, Options vested | 3 years 6 months |
Weighted Average Remaining Contractual Term in Years, Options unvested | 9 years 3 months 18 days |
Aggregate Intrinsic Value, Options outstanding as of March 31, 2018 | $ | $ 121,367 |
Aggregate Intrinsic Value, Options vested as of March 31, 2018 | $ | 118,432 |
Aggregate Intrinsic Value, Options unvested as of March 31, 2018 | $ | $ 2,935 |
Stockholders' Equity - Summar65
Stockholders' Equity - Summary of Exercise Price (Detail) shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
$2.96 to $5.74 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | $ 2.96 |
Range of Exercise Prices Maximum | $ 5.74 |
Options Outstanding Shares | shares | 2,542 |
Weighted Average Remaining Contractual Life | 2 years 8 months 12 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 5.43 |
Options Exercisable Shares | shares | 2,542 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 5.43 |
$5.75 to $22.99 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 5.75 |
Range of Exercise Prices Maximum | $ 22.99 |
Options Outstanding Shares | shares | 703 |
Weighted Average Remaining Contractual Life | 2 years 1 month 6 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 8.58 |
Options Exercisable Shares | shares | 703 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 8.58 |
$23.00 to $42.32 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 23 |
Range of Exercise Prices Maximum | $ 42.32 |
Options Outstanding Shares | shares | 1,656 |
Weighted Average Remaining Contractual Life | 8 years 3 months 18 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 33.04 |
Options Exercisable Shares | shares | 805 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 29.30 |
$2.96 to $42.32 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 2.96 |
Range of Exercise Prices Maximum | $ 42.32 |
Options Outstanding Shares | shares | 4,901 |
Weighted Average Remaining Contractual Life | 4 years 6 months |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 15.21 |
Options Exercisable Shares | shares | 4,050 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 10.72 |
Stockholders' Equity - Summar66
Stockholders' Equity - Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) - Stock Options [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected option term (in years) | 6 years | 6 years |
Risk-free interest rate | 2.70% | 2.00% |
Expected volatility | 35.00% | 40.00% |
Weighted average exercise price | $ 38.34 | $ 37.97 |
Weighted average fair value at grant date | $ 14.84 | $ 15.71 |
Stockholders' Equity - Summar67
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share units, Beginning balance | shares | 2,279 |
Shares, Granted | shares | 1,067 |
Shares, Vested and shares issued | shares | (1,037) |
Shares, Forfeited | shares | (92) |
Non-vested share units, Ending balance | shares | 2,217 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ / shares | $ 31.83 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | 38.34 |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | $ / shares | 30.62 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 32.35 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ / shares | $ 35.51 |
Stockholders' Equity - Summar68
Stockholders' Equity - Summary of PSU Activity (Detail) - Performance Shares [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested share units, Beginning balance | shares | 344 |
Shares, Granted | shares | 172 |
Shares, Vested and shares issued | shares | (202) |
Shares, Forfeited | shares | (14) |
Non-vested share units, Ending balance | shares | 300 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance | $ / shares | $ 26.75 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | 38.34 |
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued | $ / shares | 26.80 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 24.94 |
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance | $ / shares | $ 33.45 |