10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to            

Commission file number 001 - 36146

CommScope Holding Company, Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-4332098
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1100 CommScope Place, SE

Hickory, North Carolina

(Address of principal executive offices)

28602

(Zip Code)

(828) 324-2200

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐  (Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of July 13, 2018 there were 192,215,154 shares of Common Stock outstanding.

CommScope Holding Company, Inc.

Form 10-Q

June 30, 2018

Table of Contents

Part I—Financial Information (Unaudited):
Item 1. Condensed Consolidated Financial Statements:
Condensed Consolidated Statements of Operations and Comprehensive Income	2
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Cash Flows	4
Condensed Consolidated Statements of Stockholders’ Equity	5
Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3. Quantitative and Qualitative Disclosures About Market Risk	40
Item 4. Controls and Procedures	40
Part II—Other Information:
Item 1. Legal Proceedings	41
Item 1A. Risk Factors	41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3. Defaults Upon Senior Securities	42
Item 4. Mine Safety Disclosures	42
Item 5. Other Information	42
Item 6. Exhibits	43
Signatures	44

1

PART 1 -- FINANCIALINFORMATION (UNAUDITED)

ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CommScope Holding Company, Inc.

Condensed Consolidated Statements of Operations

and Comprehensive Income (Loss)

(Unaudited – In thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net sales	$	1,239,856		$	1,174,090		$	2,360,373		$	2,311,375
Operating costs and expenses:
Cost of sales		768,546			702,325			1,477,663			1,385,803
Selling, general and administrative		185,197			207,640			370,328			419,461
Research and development		47,765			46,982			97,629			95,970
Amortization of purchased intangible assets		66,442			66,981			133,671			134,619
Restructuring costs, net		7,218			13,773			12,668			19,161
Total operating costs and expenses		1,075,168			1,037,701			2,091,959			2,055,014
Operating income		164,688			136,389			268,414			256,361
Other income (expense), net		(3,094	)		2,900			(2,111	)		(12,457	)
Interest expense		(60,726	)		(61,417	)		(120,533	)		(130,971	)
Interest income		2,057			1,730			3,491			2,604
Income before income taxes		102,925			79,602			149,261			115,537
Income tax expense		(37,003	)		(24,138	)		(49,604	)		(26,511	)
Net income	$	65,922		$	55,464		$	99,657		$	89,026
Earnings per share:
Basic	$	0.34		$	0.29		$	0.52		$	0.46
Diluted	$	0.34		$	0.28		$	0.51		$	0.45
Weighted average shares outstanding:
Basic		192,162			193,092			191,767			193,555
Diluted		195,186			197,218			195,346			198,173
Comprehensive income (loss):
Net income	$	65,922		$	55,464		$	99,657		$	89,026
Other comprehensive income (loss), net of tax:
Foreign currency translation gain (loss)		(108,544	)		86,749			(61,759	)		127,100
Pension and other postretirement benefit activity		(1,291	)		(360	)		(2,723	)		(729	)
Gain (loss) on net investment hedge		3,051			(2,996	)		2,453			(3,351	)
Available-for-sale securities		—			(2,132	)		—			(823	)
Total other comprehensive income (loss), net of tax		(106,784	)		81,261			(62,029	)		122,197
Total comprehensive income (loss)	$	(40,862	)	$	136,725		$	37,628		$	211,223
See notes to unaudited condensed consolidated financial statements.

2

CommScope Holding Company, Inc.

Condensed Consolidated Balance Sheets

(Unaudited - In thousands, except share amounts)

	June 30, 2018			December 31, 2017
Assets
Cash and cash equivalents	$	545,701		$	453,977
Accounts receivable, less allowance for doubtful accounts of    $19,123 and $13,976, respectively		1,023,716			898,829
Inventories, net		479,468			444,941
Prepaid expenses and other current assets		123,371			146,112
Total current assets		2,172,256			1,943,859
Property, plant and equipment, net of accumulated depreciation    of $413,832 and $390,389, respectively		446,954			467,289
Goodwill		2,866,319			2,886,630
Other intangible assets, net		1,491,007			1,636,084
Other noncurrent assets		129,344			107,804
Total assets	$	7,105,880		$	7,041,666
Liabilities and Stockholders' Equity
Accounts payable	$	487,521		$	436,737
Other accrued liabilities		297,755			286,980
Total current liabilities		785,276			723,717
Long-term debt		4,374,209			4,369,401
Deferred income taxes		108,529			134,241
Pension and other postretirement benefit liabilities		23,006			25,140
Other noncurrent liabilities		111,591			141,341
Total liabilities		5,402,611			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: 192,214,497 and 190,906,110,
respectively		1,989			1,972
Additional paid-in capital		2,361,365			2,334,071
Retained earnings (accumulated deficit)		(290,337	)		(395,998	)
Accumulated other comprehensive loss		(148,632	)		(86,603	)
Treasury stock, at cost: 6,735,330 shares and 6,336,144 shares,
respectively		(221,116	)		(205,616	)
Total stockholders' equity		1,703,269			1,647,826
Total liabilities and stockholders' equity	$	7,105,880		$	7,041,666

See notes to unaudited condensed consolidated financial statements.

3

CommScope Holding Company, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited - In thousands)

	Six Months Ended
	June 30,
	2018			2017
Operating Activities:
Net income	$	99,657		$	89,026
Adjustments to reconcile net income to net cash generated by   operating activities:
Depreciation and amortization		178,349			190,453
Equity-based compensation		22,396			20,598
Deferred income taxes		(24,610	)		(14,073	)
Changes in assets and liabilities:
Accounts receivable		(137,023	)		43,975
Inventories		(47,993	)		(42,243	)
Prepaid expenses and other assets		(608	)		(1,773	)
Accounts payable and other liabilities		40,881			(120,777	)
Other		4,014			24,847
Net cash generated by operating activities		135,063			190,033
Investing Activities:
Additions to property, plant and equipment		(30,844	)		(30,577	)
Proceeds from sale of property, plant and equipment		6,225			4,978
Proceeds upon settlement of net investment hedge		1,331			—
Other		—			6,778
Net cash used in investing activities		(23,288	)		(18,821	)
Financing Activities:
Long-term debt repaid		—			(780,379	)
Long-term debt proceeds		—			780,379
Debt issuance and modification costs		—			(8,363	)
Debt extinguishment costs		—			(14,800	)
Cash paid for repurchase of common stock		—			(100,000	)
Proceeds from the issuance of common shares under equity-based    compensation plans		4,915			8,506
Tax withholding payments for vested equity-based compensation   awards		(15,500	)		(14,858	)
Net cash used in financing activities		(10,585	)		(129,515	)
Effect of exchange rate changes on cash and cash equivalents		(9,466	)		14,566
Change in cash and cash equivalents		91,724			56,263
Cash and cash equivalent at beginning of period		453,977			428,228
Cash and cash equivalents at end of period	$	545,701		$	484,491

See notes to unaudited condensed consolidated financial statements.

4

CommScope Holding Company, Inc.

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited - In thousands, except share amounts)

	Six Months Ended
	June 30,
	2018			2017
Number of common shares outstanding:
Balance at beginning of period		190,906,110			193,837,437
Issuance of shares under equity-based compensation plans		1,707,573			2,073,565
Shares surrendered under equity-based compensation plans		(399,186	)		(396,010	)
Repurchase of common stock		—			(2,485,520	)
Balance at end of period		192,214,497			193,029,472
Common stock:
Balance at beginning of period	$	1,972		$	1,950
Issuance of shares under equity-based compensation plans		17			20
Balance at end of period	$	1,989		$	1,970
Additional paid-in capital:
Balance at beginning of period	$	2,334,071		$	2,282,014
Issuance of shares under equity-based compensation plans		4,898			8,486
Equity-based compensation		22,396			20,579
Cumulative effect of change in accounting principle		—			295
Balance at end of period	$	2,361,365		$	2,311,374
Retained earnings (accumulated deficit):
Balance at beginning of period	$	(395,998	)	$	(589,556	)
Net income		99,657			89,026
Cumulative effect of change in accounting principle		6,004			(206	)
Balance at end of period	$	(290,337	)	$	(500,736	)
Accumulated other comprehensive loss:
Balance at beginning of period	$	(86,603	)	$	(285,113	)
Other comprehensive income (loss), net of tax		(62,029	)		122,197
Balance at end of period	$	(148,632	)	$	(162,916	)
Treasury stock, at cost:
Balance at beginning of period	$	(205,616	)	$	(15,211	)
Net shares surrendered under equity-based compensation plans		(15,500	)		(14,858	)
Repurchase of common stock		—			(100,000	)
Balance at end of period	$	(221,116	)	$	(130,069	)
Total stockholders' equity	$	1,703,269		$	1,519,623

See notes to unaudited condensed consolidated financial statements.

5

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 June 30, 2018, the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2018 and 2017, and the Condensed Consolidated Statements of Cash Flows and Stockholders’ Equity for the six months ended June 30, 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, there were no material changes in the Company’s significant accounting policies during the three or six months ended June 30, 2018. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in the 2017 Annual Report.

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 either at 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 completion of the performance obligation 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.

6

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

The Company also recognizes revenue from other customer contract types, including licensing of intellectual property, software licensing and post-contract 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 performance 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 11% of the Company’s total net sales during both the three and six months ended June 30, 2018. Net sales to Anixter accounted for 12% and 11% of the Company’s total net sales during the three and six months ended June 30, 2017, respectively. Sales to Anixter primarily originate within the CCS segment. Net sales to KGP Companies (KGPCo) accounted for 10% of the Company’s net sales during the three months ended June 30, 2018 but did not exceed 10% for the six months ended June 30, 2018 or the three or six months ended June 30, 2017. KGPCo provides supply chain management to operators deploying wired and wireless networks in the United States (U.S.) and services end-users of both of the Company’s segments. Other than Anixter and KGPCo, no direct customer accounted for 10% or more of the Company’s total net sales for the three or six months ended June 30, 2018 or 2017.

Accounts receivable from Anixter accounted for 10% of the Company’s accounts receivable as of June 30, 2018. Other than Anixter, no direct customer accounted for 10% or more of the Company’s accounts receivable as of June 30, 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.

7

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

The following table summarizes the activity in the product warranty accrual, included in other accrued liabilities:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Product warranty accrual, beginning of period	$	16,150		$	20,180		$	16,928		$	21,631
Provision for warranty claims		458			2,028			1,878			4,231
Warranty claims paid		(1,697	)		(2,029	)		(3,913	)		(5,718	)
Foreign exchange		(65	)		104			(47	)		139
Product warranty accrual, end of period	$	14,846		$	20,283		$	14,846		$	20,283

Commitments and Contingencies

The Company is either a plaintiff or a defendant in certain pending legal matters in the normal course of business. The Company may also be called upon to indemnify certain customers for costs related to products or services sold to such customers. 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 or six months ended June 30, 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 are then measured at fair value if an impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three or six months ended June 30, 2018 or 2017.

8

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 or six months ended June 30, 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 36.0% and 33.2% for the three and six months ended June 30, 2018, respectively, 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 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 $0.4 million and $4.7 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2018, respectively.

The effective income tax rate of 30.3% and 22.9% for the three and six months ended June 30, 2017, respectively, was lower than the statutory rate of 35.0% primarily due to the favorable impact of $4.4 million and $13.1 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2017, respectively. 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 and six months ended June 30, 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 (2.2 million shares and 1.7 million shares for the three and six months ended June 30, 2018, respectively, and 0.7 million shares and 0.5 million shares for the three and six months ended June 30, 2017, respectively).

The following table presents the basis for the earnings per share computations (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net income for basic and diluted earnings per share	$	65,922	$	55,464	$	99,657	$	89,026
Denominator:
Weighted average common shares outstanding - basic		192,162		193,092		191,767		193,555
Dilutive effect of equity-based awards		3,024		4,126		3,579		4,618
Weighted average common shares outstanding - diluted		195,186		197,218		195,346		198,173
Earnings per share:
Basic	$	0.34	$	0.29	$	0.52	$	0.46
Diluted	$	0.34	$	0.28	$	0.51	$	0.45

9

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

Recent Accounting Pronouncements

Adopted During the Six Months Ended June 30, 2018

The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, including all subsequently issued clarifying guidance, on January 1, 2018. The core principle of the new guidance is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company adopted the standard using the modified retrospective approach with the cumulative effect of applying the standard on the date of adoption recognized in retained earnings (accumulated deficit).

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 contracts represented less than 2.0% of total net sales for the three and six months ended June 30, 2018 and 2017. 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 performance obligation. Based on contracts in effect at January 1, 2018, the Company recorded a cumulative effect adjustment, net of tax, of $3.4 million, which reduced 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 June 30, 2018							Six Months Ended June 30, 2018
	As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)			As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)
Net sales	$	1,239,856	$	1,239,800	$	56		$	2,360,373	$	2,362,057	$	(1,684	)
Cost of sales		768,546		768,288		258			1,477,663		1,477,185		478
Operating income		164,688		164,890		(202	)		268,414		270,576		(2,162	)
Income tax expense		37,003		37,028		(25	)		49,604		50,142		(538	)
Net income		65,922		66,099		(177	)		99,657		101,281		(1,624	)

	As of June 30, 2018
	As Reported			Amounts Without Adoption of ASU No. 2014-09			Effect of Change Increase / (Decrease)
Assets:
Accounts receivable, less allowance      for doubtful accounts	$	1,023,716		$	1,020,404		$	3,312
Inventories, net		479,468			483,275			(3,807	)
Liabilities:
Other accrued liabilities		297,755			300,040			(2,285	)
Equity:
Retained earnings (accumulated deficit)		(290,337	)		(292,127	)		1,790

The Company adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018. This new guidance modifies how entities measure equity investments (except those accounted for under the equity method of accounting) and present changes in the fair value of financial liabilities; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; changes presentation and disclosure requirements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Adoption of this new guidance did not have a material impact on the consolidated financial statements.

10

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

The Company adopted ASU No. 2016-16, Accounting for Income Taxes, Intra-Entity Asset Transfers of Assets Other than Inventory, on January 1, 2018. Under previous guidance, the tax effects of intra-entity asset transfers were deferred until the transferred asset was sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, the tax effect of an intra-entity asset sale would be recognized when the transfer occurs. The Company recorded a cumulative effect adjustment of $2.6 million as of January 1, 2018 that decreased the accumulated deficit on the Condensed Consolidated Balance Sheets as a result of this new guidance.

The Company adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on January 1, 2018. The new standard requires an employer to report the service cost component of net periodic benefit cost in the same line item as other compensation costs arising from services rendered by the employee and requires the other components of net periodic benefit cost to be reported outside the subtotal of operating income. Of the total $1.3 million of net periodic benefit income for the three months ended June 30, 2018, $2.3 million of net periodic benefit income was recorded in other income (expense), net, and $1.0 million of net periodic benefit cost was recorded within operating income. Of the total $2.4 million of net periodic benefit income for the six months ended June 30, 2018, $4.6 million of net periodic benefit income was recorded in other income (expense), net, and $2.2 million of net periodic benefit cost was recorded within operating income. The Company utilized the practical expedient and used the amounts disclosed in its employee benefit plans note for the three and six months ended June 30, 2017 as the basis for applying the retrospective presentation requirements. The Company reclassified $1.4 million and $2.8 million of net periodic benefit income from operating income to other income (expense), net for the three and six months ended June 30, 2017, respectively. The adoption of this guidance had no impact on the previously reported income before income taxes or net income for the three or six months ended June 30, 2017.

The Company adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities, on January 1, 2018. The new guidance provides targeted improvements to the hedge accounting model intended to allow financial reporting to more closely reflect an entity’s risk management activities and to simplify the application of hedge accounting. Beginning January 1, 2018, the Company has elected to assess the effectiveness of its net investment hedges using the spot rate method. As a result, differences between the spot rate and the forward rate will be amortized on a straight-line basis to other income (expense), net over the life of the contract. See Note 6 for the details on the impact of this change to the financial statements.

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, which allows companies to elect reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the U.S. tax legislation enacted in 2017. ASU No. 2018-02 is effective for the Company as of January 1, 2019 and early adoption is permitted. The Company does not expect to elect the permitted reclassification and therefore does not expect the new guidance to have an impact on the consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test of Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize a goodwill impairment charge for the excess of the reporting unit’s carrying amount over its fair value, up to the amount of goodwill allocated to that reporting unit. ASU No. 2017-04 is effective for the Company as of January 1, 2020 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements and when it may be adopted.

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The new guidance replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. ASU No. 2016-13 is effective for the Company as of January 1, 2020 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements and when it may be adopted.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which 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. ASU No. 2016-02 is effective for the Company as of January 1, 2019. The Company continues to evaluate the impact of adoption on the consolidated financial statements but expects the only significant impact of the ASU to be the recognition of right-of-use assets and lease liabilities.

11

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 and six months ended June 30, 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.

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		(18.9	)		(1.4	)		(20.3	)
Goodwill, gross at June 30, 2018		2,174.3			903.0			3,077.3
Accumulated impairment charges at December 31, 2017    and June 30, 2018		(51.5	)		(159.5	)		(211.0	)
Goodwill, net at June 30, 2018	$	2,122.8		$	743.5		$	2,866.3

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						Six Months Ended
	June 30, 2018						June 30, 2018
	CCS		CMS		Total		CCS		CMS		Total
Contract type:
Product contracts	$	738.4	$	474.5	$	1,212.9	$	1,410.0	$	899.8	$	2,309.8
Project contracts		0.1		13.5		13.6		0.1		24.0		24.1
Other contracts		2.0		11.4		13.4		4.0		22.5		26.5
Consolidated net sales	$	740.5	$	499.4	$	1,239.9	$	1,414.1	$	946.3	$	2,360.4

12

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

Further information onnet sales by reportable segment and geographic region is included in Note 8.

Allowance for Doubtful Accounts

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2018			2017		2018			2017
Allowance for doubtful accounts, beginning of period	$	15,107		$	18,103	$	13,976		$	17,211
Charged to costs and expenses		5,058			241		6,524			1,053
Deductions (1)		(1,042	)		494		(1,377	)		574
Allowance for doubtful accounts, end of period	$	19,123		$	18,838	$	19,123		$	18,838

(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 June 30, 2018 and December 31, 2017.

	Balance Sheet Location	June 30, 2018		December 31, 2017
Unbilled accounts receivable	Accounts receivable, less allowance for doubtful accounts	$	4,138	$	—
Deferred revenue	Other accrued liabilities		11,888		12,611

There were no material changes to contract asset balances for the three or six months ended June 30, 2018 as a result of changes in estimates or impairments. The full amount of the deferred revenue balance as of June 30, 2018 was classified as a current liability as the Company expects to recognize these amounts over the next twelve months.

Inventories

	June 30, 2018		December 31, 2017
Raw materials	$	153,106	$	126,558
Work in process		104,706		98,526
Finished goods		221,656		219,857
	$	479,468	$	444,941

Other Accrued Liabilities

	June 30, 2018		December 31, 2017
Compensation and employee benefit liabilities	$	102,292	$	97,522
Accrued interest		18,610		23,485
Deferred revenue		11,888		12,611
Product warranty accrual		14,846		16,928
Restructuring reserve		14,211		24,961
Income taxes payable		23,708		16,949
Purchase price payable		10,717		2,098
Value-added taxes payable		18,683		11,838
Accrued professional fees		9,505		10,224
Other		73,295		70,364
	$	297,755	$	286,980

13

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Foreign currency translation
Balance at beginning of period	$	(5,985	)	$	(213,797	)	$	(52,770	)	$	(254,148	)
Other comprehensive income (loss)		(108,544	)		86,749			(61,759	)		126,833
Amounts reclassified from AOCL		—			—			—			267
Balance at end of period	$	(114,529	)	$	(127,048	)	$	(114,529	)	$	(127,048	)
Net investment hedge
Balance at beginning of period	$	(5,579	)	$	(355	)	$	(4,981	)	$	—
Other comprehensive income (loss)		3,051			(2,996	)		2,453			(3,351	)
Balance at end of period	$	(2,528	)	$	(3,351	)	$	(2,528	)	$	(3,351	)
Defined benefit plan activity
Balance at beginning of period	$	(30,284	)	$	(33,842	)	$	(28,852	)	$	(33,473	)
Amounts reclassified from AOCL		(1,291	)		(360	)		(2,723	)		(729	)
Balance at end of period	$	(31,575	)	$	(34,202	)	$	(31,575	)	$	(34,202	)
Available-for-sale securities
Balance at beginning of period	$	—		$	3,817		$	—		$	2,508
Other comprehensive income		—			1,616			—			3,314
Amounts reclassified from AOCI		—			(3,748	)		—			(4,137	)
Balance at end of period	$	—		$	1,685		$	—		$	1,685
Net AOCL at end of period	$	(148,632	)	$	(162,916	)	$	(148,632	)	$	(162,916	)

Amounts reclassified from net AOCL related to foreign currency translation, available-for-sale securities and defined benefit plans are recorded in other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Cash Flow Information

	Six Months Ended June 30,
	2018		2017
Cash paid during the period for:
Income taxes, net of refunds	$	63,885	$	77,318
Interest		120,251		105,376

14

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

5. FINANCING

	June 30, 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		(3,092	)		(3,389	)
Less: Debt issuance costs, net of amortization		(58,949	)		(63,460	)
Total long-term debt	$	4,374,209		$	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 Company’s debt obligations. 

Senior Secured Credit Facilities

No portion of the senior secured term loan was reflected as a current portion of long-term debt as of June 30, 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 six months ended June 30, 2018, the Company did not borrow under its revolving credit facility. As of June 30, 2018, the Company had availability of $506.4 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 $2,454 million, or 35%, of total assets and $547 million, or 10%, of total liabilities as of June 30, 2018 and accounted for $471 million, or 38%, and $935 million, or 40%, of net sales for the three and six months ended June 30, 2018, respectively. 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 and six months ended June 30, 2017, the non-guarantor subsidiaries accounted for $471 million, or 40%, and $911 million, or 39%, of net sales, respectively. 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 5.58% and 5.45% at June 30, 2018 and December 31, 2017, respectively.

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 June 30, 2018, the Company had foreign exchange contracts outstanding with maturities of up to fourteen months and aggregate notional values of $421 million (based on exchange rates as of June 30, 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.

15

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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	June 30, 2018			December 31, 2017
Foreign currency contracts	Prepaid expenses and other current assets	$	1,908		$	9,050
Foreign currency contracts	Other accrued liabilities		(5,037	)		(574	)
Foreign currency contracts	Other noncurrent liabilities		(309	)		—
Total derivatives not designated as    hedging instruments		$	(3,438	)	$	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 (Loss) is as follows:

Foreign Currency Forward Contracts	Location of Gain (Loss)	Gain (Loss) Recognized
Three Months Ended June 30, 2018	Other income (expense), net	$	(19,441	)
Three Months Ended June 30, 2017	Other income (expense), net	$	12,553
Six Months Ended June 30, 2018	Other income (expense), net	$	(7,561	)
Six Months Ended June 30, 2017	Other income (expense), net	$	14,409

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 June 30, 2018, the Company held designated forward contracts with outstanding maturities of up to six months and an aggregate notional value of $55.0 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. The amortization of the spot-forward differences was not material for the three or six months ended June 30, 2018.

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 (loss), net of tax. As of June 30, 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	June 30, 2018		December 31, 2017
Foreign currency contracts	Prepaid expenses and other current assets	$	2,319	$	—
Foreign currency contracts	Other accrued liabilities		—		(403	)
Total derivatives designated as net    investment hedging instruments		$	2,319	$	(403	)

16

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 (Loss) is as follows:

Foreign Currency Forward Contracts	Location of Gain (Loss)	Effective Portion of Gain (Loss) Recognized
Three Months Ended June 30, 2018	Other comprehensive income (loss), net of tax	$	3,051
Three Months Ended June 30, 2017	Other comprehensive income (loss), net of tax	$	(2,996	)
Six Months Ended June 30, 2018	Other comprehensive income (loss), net of tax	$	2,453
Six Months Ended June 30, 2017	Other comprehensive income (loss), net of tax	$	(3,351	)

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 June 30, 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 June 30, 2018 and December 31, 2017, are as follows:

	June 30, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Foreign currency contracts	$	4,227	$	4,227	$	9,050	$	9,050	Level 2
Liabilities:
5.00% senior notes due 2027		750,000		705,975		750,000		753,750	Level 2
6.00% senior notes due 2025		1,500,000		1,531,950		1,500,000		1,591,800	Level 2
5.50% senior notes due 2024		650,000		653,250		650,000		676,780	Level 2
5.00% senior notes due 2021		650,000		650,000		650,000		661,375	Level 2
Senior secured term loan due 2022, at par		886,250		889,551		886,250		892,343	Level 2
Foreign currency contracts		5,346		5,346		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.

17

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 data 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):

	June 30, 2018		December 31, 2017
Identifiable segment-related assets:
CCS	$	4,468.5	$	4,546.0
CMS		2,043.5		1,995.8
Total identifiable segment-related assets		6,512.0		6,541.8
Reconciliation to total assets:
Cash and cash equivalents		545.7		454.0
Deferred income tax assets		48.2		45.9
Total assets	$	7,105.9	$	7,041.7

18

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net sales:
CCS	$	740.5		$	725.7		$	1,414.1		$	1,407.3
CMS		499.4			448.4			946.3			904.1
Consolidated net sales	$	1,239.9		$	1,174.1		$	2,360.4		$	2,311.4
Segment adjusted operating income:
CCS	$	142.9		$	145.6		$	251.6		$	260.2
CMS		108.2			95.4			188.1			196.8
Total segment adjusted operating income		251.1			241.0			439.7			457.0
Amortization of intangible assets		(66.4	)		(67.0	)		(133.7	)		(134.6	)
Restructuring costs, net		(7.2	)		(13.8	)		(12.7	)		(19.2	)
Equity-based compensation		(11.8	)		(11.2	)		(22.4	)		(20.6	)
Integration and transaction costs		(1.0	)		(12.6	)		(2.5	)		(26.2	)
Consolidated operating income	$	164.7		$	136.4		$	268.4		$	256.4
Depreciation expense:
CCS	$	14.2		$	14.5		$	28.3		$	28.9
CMS		5.7			5.7			11.2			11.3
Consolidated depreciation expense	$	19.9		$	20.2		$	39.5		$	40.2
Additions to property, plant and equipment:
CCS	$	12.6		$	11.7		$	21.4		$	20.5
CMS		4.6			6.0			9.4			10.1
Consolidated additions to property, plant and equipment	$	17.2		$	17.7		$	30.8		$	30.6

Sales to customers located outside of the U.S. comprised 42.4% and 44.0% of total net sales for the three and six months ended June 30, 2018, respectively, compared to 45.2% and 44.1% of total net sales for the three and six months ended June 30, 2017, respectively. Sales by geographic region, based on the destination of product shipments, were as follows (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
United States	$	714.6	$	643.9	$	1,322.1	$	1,292.2
Europe, Middle East and Africa		253.4		235.8		503.1		467.6
Asia Pacific		183.2		203.8		371.8		385.7
Caribbean and Latin America		61.6		56.1		117.7		114.9
Canada		27.1		34.5		45.7		51.0
Consolidated net sales	$	1,239.9	$	1,174.1	$	2,360.4	$	2,311.4

19

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 include 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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
CCS	$	4,687	$	9,596	$	7,058	$	14,352
CMS		2,531		4,177		5,610		4,809
Total	$	7,218	$	13,773	$	12,668	$	19,161

Restructuring reserves were included in the Company’s Condensed Consolidated Balance Sheets as follows:

	June 30, 2018		December 31, 2017
Other accrued liabilities	$	14,211	$	24,961
Other noncurrent liabilities		5,399		7,036
Total liability	$	19,610	$	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 June 30, 2018, these actions were substantially complete except for a $4.4 million liability for lease termination costs, for which the Company expects to make cash payments of $0.9 million during the remainder of 2018 and make the remaining payments of $3.5 million between 2019 and 2022.

20

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 March 31, 2018	$	16,097		$	904		$	—		$	17,001
Additional charge recorded		7,092			151			(83	)		7,160
Cash paid		(8,131	)		(378	)		(248	)		(8,757	)
Consideration received		—			—			2,235			2,235
Foreign exchange and other non-cash items		(503	)		(25	)		(1,904	)		(2,432	)
Balance at June 30, 2018	$	14,555		$	652		$	—		$	15,207
Balance at December 31, 2017	$	25,588		$	1,080		$	—		$	26,668
Additional charge recorded		11,030			809			708			12,547
Cash paid		(21,823	)		(1,222	)		(395	)		(23,440	)
Consideration received		—			—			4,514			4,514
Foreign exchange and other non-cash items		(240	)		(15	)		(4,827	)		(5,082	)
Balance at June 30, 2018	$	14,555		$	652		$	—		$	15,207

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 $122.2 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 $10.2 million during the remainder of 2018 and additional cash payments of $5.0 million between 2019 and 2022. Future restructuring actions may be identified and the resulting charges and cash requirements may be material.

10. EMPLOYEE BENEFIT PLANS

Pension Plans

	Three Months Ended
	June 30,
	U.S. Plans						Non-U.S. Plans
	2018			2017			2018			2017
Service cost	$	—		$	—		$	1,023		$	1,197
Interest cost		1,323			1,490			1,316			1,312
Recognized actuarial loss		120			164			315			378
Amortization of prior service cost		—			—			10			—
Expected return on plan assets		(1,597	)		(1,687	)		(1,954	)		(1,877	)
Net periodic benefit cost (income)	$	(154	)	$	(33	)	$	710		$	1,010

	Six Months Ended
	June 30,
	U.S. Plans						Non-U.S. Plans
	2018			2017			2018			2017
Service cost	$	—		$	—		$	2,187		$	2,361
Interest cost		2,646			2,980			2,669			2,583
Recognized actuarial gain		240			328			635			745
Amortization of prior service credit		—			—			21			—
Expected return on plan assets		(3,194	)		(3,374	)		(3,958	)		(3,696	)
Net periodic benefit cost (income)	$	(308	)	$	(66	)	$	1,554		$	1,993

21

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 $4.6 million and $5.7 million to its defined benefit pension plans during the three and six months ended June 30, 2018, respectively. During the remainder of 2018, the Company anticipates making additional contributions of approximately $3.4 million to these plans.

During the first quarter of 2018, the Company communicated its intent to terminate a significant U.S. defined benefit pension plan. The Company contributed $3.0 million to the plan during the three and six months ended June 30, 2018, which was needed to substantially fund the termination of the plan, which will be effected through the purchase of annuities. This contribution is included in the contributed amounts 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 $27 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.  

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 or six months ended June 30, 2018. The remaining authorization under the plan was $25.0 million at June 30, 2018 and expires on July 31, 2018.

Equity-Based Compensation Plans

As of June 30, 2018, $80.9 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 1.5 years. There were no significant capitalized equity-based compensation costs at June 30, 2018.

The following table shows the location of equity-based compensation expense on the statement of operations:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Selling, general and administrative	$	9,023	$	8,517	$	17,063	$	15,676
Cost of sales		1,501		1,418		2,833		2,615
Research and development		1,324		1,251		2,500		2,307
Total equity-based compensation expense	$	11,848	$	11,186	$	22,396	$	20,598

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.

22

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

The following table summarizes the stock option activity (in thousands, except per share data and years):

	Shares			Weighted Average Option Exercise Price Per Share		Weighted Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
Options outstanding at March 31, 2018		4,901		$	15.21
Granted		33		$	39.46
Exercised		(102	)	$	9.70
Forfeited		(48	)	$	34.73
Options outstanding at June 30, 2018		4,784		$	15.30		4.3	$	75,053
Options outstanding at December 31, 2017		4,830		$	13.01
Granted		477		$	38.42
Exercised		(432	)	$	11.37
Forfeited		(91	)	$	33.60
Options outstanding at June 30, 2018		4,784		$	15.30		4.3	$	75,053
Options vested at June 30, 2018		3,957		$	10.80		3.3	$	74,702
Options unvested at June 30, 2018		827		$	36.80		9.1	$	351

The exercise prices of outstanding options at June 30, 2018 were in the following ranges (in thousands, except per share data and years):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$2.96 to $5.74		2,502		2.4	$	5.42		2,502	$	5.42
$5.75 to $22.99		653		1.9	$	8.58		653	$	8.58
$23.00 to $42.32		1,629		8.1	$	33.16		802	$	29.40
$2.96 to $42.32		4,784		4.3	$	15.30		3,957	$	10.80

The Company uses the Black-Scholes model to estimate the fair value of stock option awards at the date of grant. Key inputs and assumptions used in the model include the grant date fair value of common stock, exercise price of the award, the expected option term, the risk-free interest rate, stock price volatility and the Company’s projected dividend yield. The expected term represents the period over which the Company’s employees are expected to hold their options. The risk-free interest rate reflects the yield on zero-coupon U.S. treasury securities with a term equal to the option’s expected term. Expected volatility is derived based on the historical volatility of the Company’s stock. The Company’s projected dividend yield is zero. The Company believes the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair values of its stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards. Subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

23

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

The following table presents the weighted average assumptions used to estimate the fair value of stock option awards granted during the three and six months ended June 30, 2018 and 2017.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018			2017
Expected option term (in years)		6.0		6.0		6.0			6.0
Risk-free interest rate		2.6%		2.0%		2.7	%		2.0	%
Expected volatility		35.0%		40.0%		35.0	%		40.0	%
Weighted average exercise price	$	39.46	$	42.32	$	38.42		$	38.00
Weighted average fair value at grant date	$	15.19	$	17.48	$	14.86		$	15.72

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 March 31, 2018		2,217		$	35.51
Granted		54		$	30.77
Vested and shares issued		(36	)	$	35.02
Forfeited		(80	)	$	34.64
Non-vested RSUs at June 30, 2018		2,155		$	35.43
Non-vested RSUs at December 31, 2017		2,279		$	31.83
Granted		1,120		$	37.98
Vested and shares issued		(1,073	)	$	30.77
Forfeited		(171	)	$	33.35
Non-vested RSUs at June 30, 2018		2,155		$	35.43

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.

24

CommScope Holding Company, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, unless otherwise noted)

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 March 31, 2018		300		$	33.45
Granted		13		$	39.46
Vested and shares issued		(1	)	$	27.64
Forfeited		(18	)	$	28.01
Non-vested PSUs at June 30, 2018		294		$	34.07
Non-vested PSUs at December 31, 2017		344		$	26.75
Granted		184		$	38.42
Vested and shares issued		(203	)	$	26.80
Forfeited		(31	)	$	26.27
Non-vested PSUs at June 30, 2018		294		$	34.07

12. SUBSEQUENT EVENTS

The Company will repay $400 million of its senior secured term loan due 2022 on July 31, 2018. The payment is expected to be made using $250 million of cash on hand and $150 million borrowed under the Company’s asset-based revolving credit facility.

25

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following narrative is an analysis of the three and six months ended June 30, 2018 compared to the three and six months ended June 30, 2017. The discussion is provided to increase the understanding of, and should be read in conjunction with, the unaudited condensed consolidated financial statements and accompanying notes included in this report as well as the audited consolidated financial statements, related notes thereto and management’s discussion and analysis of financial condition and results of operations, including management’s discussion and analysis regarding the application of critical accounting policies as well as the risk factors, included in our 2017 Annual Report on Form 10-K.

We discuss certain financial measures in management’s discussion and analysis of financial condition and results of operations, including Adjusted Operating Income and Adjusted EBITDA, that differ from measures calculated in accordance with generally accepted accounting principles in the United States (GAAP). See "Reconciliation of Non-GAAP Measures" included elsewhere in this quarterly report for more information about these non-GAAP financial measures, including our reasons for including the measures and material limitations with respect to the usefulness of the measures.

Overview

We are a global provider of infrastructure solutions for the core, access and edge layers of communication networks. Our solutions and services for wired and wireless networks enable high-bandwidth data, video and voice applications. Our global leadership position is built upon innovative technology, broad solution offerings, high-quality and cost-effective customer solutions, and global manufacturing and distribution scale.

For the three and six months ended June 30, 2018, our net sales increased by 5.6% and 2.1%, respectively, from the prior year periods. Operating income increased 20.7% and 4.7%, for the three and six months ended June 30, 2018, respectively, compared to the prior year periods. Non-GAAP adjusted operating income increased 4.2% for the three months ended June 30, 2018 but decreased by 3.8% for the six months ended June 30, 2018 compared to the same prior year periods. Net income increased 18.7% and 12.0% for the three and six months ended June 30, 2018, respectively. Diluted earnings per share increased 21.4% and 13.3% for the three and six months ended June 30, 2018, respectively.

CRITICAL ACCOUNTING POLICIES

Other than the changes to revenue recognition policies as a result of the adoption of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, as of January 1, 2018, there have been no material changes in our critical accounting policies or significant accounting estimates as disclosed in our 2017 Annual Report on Form 10-K. See the discussion in Note 1 in the notes to unaudited condensed consolidated financial statements included in this report for further information regarding the adoption of ASU No. 2014-09.

26

COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 WITH THE THREE AND SIX MONTHS ENDED JUNE 30, 2017

	Three Months Ended
	June 30,
	2018					2017
	Amount		% of Net Sales			Amount		% of Net Sales			$ Change			% Change
	(dollars in millions, except per share amounts)
Net sales	$	1,239.9		100.0	%	$	1,174.1		100.0	%	$	65.8			5.6	%
Gross profit		471.3		38.0			471.8		40.2			(0.5	)		(0.1	)
Operating income		164.7		13.3			136.4		11.6			28.3			20.7
Non-GAAP adjusted operating income (1)		251.1		20.3			241.0		20.5			10.1			4.2
Net income		65.9		5.3	%		55.5		4.7	%		10.4			18.7
Diluted earnings per share	$	0.34				$	0.28				$	0.06			21.4	%
	Six Months Ended
	June 30,
	2018					2017
	Amount		% of Net Sales			Amount		% of Net Sales			$ Change			% Change
	(dollars in millions, except per share amounts)
Net sales	$	2,360.4		100.0	%	$	2,311.4		100.0	%	$	49.0			2.1	%
Gross profit		882.7		37.4			925.6		40.0			(42.9	)		(4.6	)
Operating income		268.4		11.4			256.4		11.1			12.0			4.7
Non-GAAP adjusted operating income (1)		439.7		18.6			457.0		19.8			(17.3	)		(3.8	)
Net income		99.7		4.2	%		89.0		3.9	%		10.7			12.0
Diluted earnings per share	$	0.51				$	0.45				$	0.06			13.3	%

(1) See “Reconciliation of Non-GAAP Measures.”

Net sales

	Three Months Ended										Six Months Ended
	June 30,				$			%			June 30,				$		%
	2018		2017		Change			Change			2018		2017		Change		Change
	(dollars in millions)
Net sales	$	1,239.9	$	1,174.1	$	65.8			5.6	%	$	2,360.4	$	2,311.4	$	49.0		2.1	%
Domestic		714.6		643.9		70.7			11.0			1,322.1		1,292.2		29.9		2.3
International		525.3		530.2		(4.9	)		(0.9	)		1,038.3		1,019.2		19.1		1.9

The increase in net sales for the three and six months ended June 30, 2018 compared to the same prior year periods was driven mostly by higher net sales in the United States (U.S.) and the Europe, Middle East and Africa (EMEA) region and to a lesser extent in the Caribbean and Latin America (CALA) region. The increases in the U.S. were driven mainly by government initiatives to promote the expansion of wireless networks. These increases in the U.S. were partially offset by reductions in certain selling prices. The increases in the EMEA region were primarily driven by favorable foreign exchange rate changes. These increases in the U.S., EMEA region and CALA region net sales were partially offset by decreases in the Asia Pacific (APAC) region. Net sales to customers located outside of the U.S. comprised 42.4% and 44.0% of total net sales for the three and six months ended June 30, 2018, respectively, compared to 45.2% and 44.1% for the three and six months ended June 30, 2017, respectively. Excluding the impacts related to the EMEA region, foreign exchange rate changes were not significant for the three or six months ended June 30, 2018 compared to the prior year periods.

Net sales from the CommScope Connectivity Solutions (CCS) segment increased 2.0% and 0.5% for the three and six months ended June 30, 2018, respectively, compared to the prior year periods primarily due to higher sales in the EMEA region. CommScope Mobility Solutions (CMS) segment net sales increased 11.4% and 4.7% for the three and six months ended June 30, 2018, respectively, compared to the prior year periods due largely to strong U.S. net sales. For further details by segment, see the section titled “Segment Results” below.

27

Gross profit, SG&A expense and R&D expense

	Three Months Ended												Six Months Ended
	June 30,						$			%			June 30,						$			%
	2018			2017			Change			Change			2018			2017			Change			Change
	(dollars in millions)
Gross profit	$	471.3		$	471.8		$	(0.5	)		(0.1	)%	$	882.7		$	925.6		$	(42.9	)		(4.6	)%
As a percent of sales		38.0	%		40.2	%								37.4	%		40.0	%
SG&A expense		185.2			207.6			(22.4	)		(10.8	)		370.3			419.5			(49.2	)		(11.7	)
As a percent of sales		14.9	%		17.7	%								15.7	%		18.1	%
R&D expense		47.8			47.0			0.8			1.7			97.6			96.0			1.6			1.7
As a percent of sales		3.9	%		4.0	%								4.1	%		4.2	%

Gross profit (net sales less cost of sales)

Despite higher sales volumes and favorable geographic mix, gross profit for the three months ended June 30, 2018 remained relatively unchanged and gross profit as a percentage of sales declined 220 basis points from the same prior year period, primarily due to reductions in certain selling prices, higher material costs and unfavorable foreign exchange rate changes. For the six months ended June 30, 2018, gross profit and gross profit as a percentage of sales decreased primarily due to reductions in certain selling prices, higher material costs and unfavorable foreign exchange rate changes, despite higher sales volumes.

Selling, general and administrative expense

Selling, general and administrative (SG&A) expense for the three and six months ended June 30, 2018 was lower than the prior year periods due primarily to benefits from cost reduction initiatives and lower costs related to the integration of the Broadband Network Solutions (BNS) business acquired from TE Connectivity in 2015. These decreases in costs were partially offset by higher incentive compensation expense and higher bad debt expense during the three and six months ended June 30, 2018. SG&A expense as a percentage of sales decreased from the prior year period as a result of these overall net reductions in expense and higher sales.  

Research and development expense

Research and development (R&D) expense and R&D expense as a percentage of sales were relatively unchanged for the three and six months ended June 30, 2018 compared to the prior year periods. R&D activities generally relate to ensuring that our products are capable of meeting the evolving technological needs of our customers, bringing new products to market and modifying existing products to better serve our customers.

Amortization of purchased intangible assets and Restructuring costs, net

	Three Months Ended							Six Months Ended
	June 30,				$			June 30,				$
	2018		2017		Change			2018		2017		Change
	(dollars in millions)
Amortization of purchased intangible assets	$	66.4	$	67.0	$	(0.6	)	$	133.7	$	134.6	$	(0.9	)
Restructuring costs, net		7.2		13.8		(6.6	)		12.7		19.2		(6.5	)

Amortization of purchased intangible assets

The amortization of purchased intangible assets decreased for the three and six months ended June 30, 2018 compared to the prior year periods because certain of our intangible assets became fully amortized. This decrease was partially offset by the amortization of intangible assets related to the Cable Exchange acquisition that occurred in August 2017.

28

Restructuring costs, net

Restructuring costs, net for the three and six months ended June 30, 2018 and 2017 were primarily related to the continuing integration of the BNS business. No significant additional restructuring charges are expected to be incurred to complete the previously announced BNS integration initiatives. From a cash perspective, we paid $9.8 million and $25.0 million to settle restructuring liabilities during the three and six months ended June 30, 2018, respectively, and expect to pay an additional $11.1 million by the end of 2018 related to restructuring actions that have been initiated. In addition, we expect to pay $8.5 million between 2019 and 2022 related to restructuring actions that have been initiated. Additional restructuring actions may be identified and the resulting charges and cash requirements may be material.

Net interest expense, Other income (expense), net and Income tax expense

	Three Months Ended									Six Months Ended
	June 30,						$			June 30,						$
	2018			2017			Change			2018			2017			Change
	(in millions)
Net interest expense	$	(58.7	)	$	(59.7	)	$	1.0		$	(117.0	)	$	(128.4	)	$	11.4
Other income (expense), net		(3.1	)		2.9			(6.0	)		(2.1	)		(12.5	)		10.4
Income tax expense		(37.0	)		(24.1	)		(12.9	)		(49.6	)		(26.5	)		(23.1	)

Net interest expense

Net interest expense for the three months ended June 30, 2018 decreased compared to the prior year period due to lower long-term debt balances as a result of the voluntary repayments in the second half of 2017 on our senior secured term loan and the amendment to reduce the interest rate margin on our senior secured term loan in May 2017, partially offset by an increase in LIBOR. The decrease in net interest expense for the six months ended June 30, 2018 compared to the prior year period was driven by the write-off of $9.6 million of debt issuance costs and original issue discount during the six months ended June 30, 2017 in connection with the redemption of $500.0 million of 4.375% senior secured notes due 2020 (the 2020 Notes) and the prepayment of $250.0 million of senior secured term loans. The redemption of the 2020 Notes and the prepayment of the senior secured term loans were substantially funded by the issuance in March 2017 of $750.0 million of 5.00% senior notes due 2027.

Our weighted average effective interest rate on outstanding borrowings, including the amortization of debt issuance costs and original issue discount, was 5.58% at June 30, 2018, 5.45% at December 31, 2017 and 5.36% at June 30, 2017.

Other income (expense), net

The change in other income (expense), net for the three months ended June 30, 2018 compared to the prior year period was partially due to the impact in the prior year period of a $6.0 million gain on the sale of a portion of our investment in Hydrogenics Corporation (Hydrogenics). The change in other income (expense), net for the six months ended June 30, 2018 compared to the prior year period was mainly the result of a redemption premium of $14.8 million incurred during the first quarter of 2017 in connection with the redemption of the 2020 Notes offset by $6.6 million in gains recognized during the six months ended June 30, 2017 related to the sale of a portion of our investment in Hydrogenics.

Foreign exchange losses of $6.4 million and $8.7 million were included in other income (expense), net for the three and six months ended June 30, 2018, respectively, compared to foreign exchange losses of $3.5 million and $5.4 million for the three and six months ended June 30, 2017, respectively.

Net periodic benefit income of $2.3 million and $4.6 million was included in other income (expense), net for the three and six months ended June 30, 2018, respectively, as a result of the adoption of ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Other income (expense), net for the three and six months ended June 30, 2017 was recast to include $1.4 million and $2.8 million, respectively, of net periodic benefit income as a result of the new guidance. See the discussion in Note 1 in the notes to unaudited condensed consolidated financial statements included in this report for further information regarding the adoption of this new accounting guidance.

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During the first quarter of 2018, we communicated our intent to terminate a significant U.S. defined benefit pension plan to be settled through the purchase of annuities. Upon settlement, which is expected in late 2018 or early 2019, we expect 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 $27 million to $29 million. We have also amended certain of our U.S. postretirement medical plans to terminate benefits as of December 31, 2018. We expect 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.

Income tax expense

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 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 or six months ended June 30, 2018, we expect 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 36.0% and 33.2% for the three and six months ended June 30, 2018, respectively, 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 U.S., 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 $0.4 million and $4.7 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2018, respectively.

Our effective income tax rate of 30.3% and 22.9% for the three and six months ended June 30, 2017, respectively, was lower than the statutory rate of 35.0% primarily due the favorable impact of $4.4 million and $13.1 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2017, respectively. The effective income tax rate was also favorably affected by the impact of earnings in foreign jurisdictions that we 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 and six months ended June 30, 2017 was the effect of the provision for state income taxes.

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Segment Results

	Three Months Ended
	June 30,
	2018					2017
	Amount		% of Net Sales			Amount		% of Net Sales			$ Change			% Change
	(dollars in millions)
Net sales by segment:
CCS	$	740.5		59.7	%	$	725.7		61.8	%	$	14.8			2.0		%
CMS		499.4		40.3			448.4		38.2			51.0			11.4
Consolidated net sales	$	1,239.9		100.0	%	$	1,174.1		100.0	%	$	65.8			5.6		%
Operating income by segment:
CCS	$	85.4		11.5	%	$	74.1		10.2	%	$	11.3			15.2		%
CMS		79.3		15.9			62.3		13.9			17.0			27.3
Consolidated operating income	$	164.7		13.3	%	$	136.4		11.6	%	$	28.3			20.7		%
Non-GAAP adjusted operating income by   segment: (1)
CCS	$	142.9		19.3	%	$	145.6		20.1	%	$	(2.7	)		(1.9	)	%
CMS		108.2		21.7			95.4		21.3			12.8			13.4
Non-GAAP consolidated adjusted operating    income (1)	$	251.1		20.3	%	$	241.0		20.5	%	$	10.1			4.2		%

	Six Months Ended
	June 30,
	2018					2017
	Amount		% of Net Sales			Amount		% of Net Sales			$ Change			% Change
	(dollars in millions)
Net sales by segment:
CCS	$	1,414.1		59.9	%	$	1,407.3		60.9	%	$	6.8			0.5		%
CMS		946.3		40.1			904.1		39.1			42.2			4.7
Consolidated net sales	$	2,360.4		100.0	%	$	2,311.4		100.0	%	$	49.0			2.1		%
Operating income by segment:
CCS	$	138.5		9.8	%	$	121.1		8.6	%	$	17.4			14.4		%
CMS		129.9		13.7			135.3		15.0			(5.4	)		(4.0	)
Consolidated operating income	$	268.4		11.4	%	$	256.4		11.1	%	$	12.0			4.7		%
Non-GAAP adjusted operating income by    segment: (1)
CCS	$	251.6		17.8	%	$	260.2		18.5	%	$	(8.6	)		(3.3	)	%
CMS		188.1		19.9			196.8		21.8			(8.7	)		(4.4	)
Non-GAAP consolidated adjusted operating    income (1)	$	439.7		18.6	%	$	457.0		19.8	%	$	(17.3	)		(3.8	)	%

(1) See “Reconciliation of Non-GAAP Measures.”

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CommScope Connectivity Solutions Segment

Our 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. Our CCS portfolio includes solutions for indoor and outdoor network applications. Indoor network solutions are found in commercial buildings and in the network core. They are primarily delivered through our SYSTIMAX, NETCONNECT and Uniprise brands and offer a complete end-to-end physical layer solution, including optical fiber and twisted pair structured cable solutions, intelligent infrastructure management hardware and software and network rack and cabinet enclosures. Our outdoor network solutions are found in access and edge networks and include a broad portfolio of fiber-to-the-home equipment and headend solutions. Our 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.

CCS segment net sales were higher in the three and six months ended June 30, 2018 compared to the prior year periods primarily due to increases in net sales in the EMEA region that were partly driven by favorable foreign exchange rate changes. The CCS segment also saw slight increases in the APAC region and the CALA region during the three and six months ended June 30, 2018. CCS segment net sales in the North American region were relatively unchanged for the three months ended June 30, 2018 but decreased for the six months ended June 30, 2018. Excluding the favorable impacts to the EMEA region, foreign exchange rate changes did not affect CCS segment net sales significantly for the three or six months ended June 30, 2018 compared to the prior year periods.

CCS segment operating income increased while non-GAAP adjusted operating income decreased during the three and six months ended June 30, 2018 compared to the prior year periods. CCS segment operating income benefitted from lower integration costs and restructuring costs, which are excluded from non-GAAP adjusted operating income. Both operating income and non-GAAP adjusted operating income were reduced by higher material costs, selling price reductions, unfavorable foreign exchange rate changes and higher bad debt expense. These reductions were partially offset by benefits from cost savings initiatives. See “Reconciliation of Non-GAAP Measures.”

We expect demand for our indoor network CCS products to be driven by global information technology spending and spending in core networks as the ongoing need for bandwidth and intelligence in the network continues to create demand for high-performance connectivity solutions. We expect demand for our outdoor network CCS products to be driven by global deployment of fiber-optic solutions for fiber-to-the-X applications, new services, competitive dynamics in the access market, ongoing maintenance requirements of cable networks and residential construction market activity in North America. Spending patterns by service providers and data center customers can be volatile. Uncertain global economic conditions, variability in the levels of commercial and residential construction activity, consolidation among service providers, uncertain levels of information technology spending and reductions in the levels of distributor inventories may negatively affect demand for our products. The increasing demand for fiber solutions is expected to be somewhat offset by decelerating demand for copper solutions in networks. Despite ongoing pricing pressure, we expect sales growth in the U.S. in 2018.

CommScope Mobility Solutions Segment

Our CMS segment, primarily through our Andrew brand, is a global leader in providing 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. The primary sources of revenue for our CMS segment are (i) product sales of primarily passive transmission devices for the wireless infrastructure market including base station and microwave antennas, hybrid fiber-feeder and power cables, coaxial cable connectors and equipment primarily used by wireless operators, (ii) product sales of active electronic devices and services including filters and tower-mounted amplifiers and (iii) engineering and consulting services and products such as distributed antenna systems that are used to extend and enhance the coverage of wireless networks in areas where signals are difficult to send or receive, such as large buildings, urban areas, stadiums and transportation systems.

CMS segment net sales increased during the three and six months ended June 30, 2018 compared to the prior year periods, driven by strong sales volumes in the U.S. offset partially by reductions in certain selling prices. The CMS segment also saw increases, though less pronounced, in the EMEA region and CALA region during the three and six months ended June 30, 2018. The increase in CMS segment net sales in the EMEA region was almost all due to favorable foreign exchange rate changes. The increases in CMS segment net sales were offset partially by decreases in net sales during the three and six months ended June 30, 2018 in the APAC region. Excluding the favorable impacts to the EMEA region, foreign exchange rate changes did not affect CMS segment net sales significantly for the three or six months ended June 30, 2018 compared to the prior year periods.

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CMS segment operating income and non-GAAP adjusted operating income increased for the threemonths ended June 30, 2018 compared to the prior year periods primarily due to higher sales volume and favorable geographic mix offset partially by selling price reductions and unfavorable foreign exchange rate changes. CMS segment operating income and non-GAAP adjusted operating income decreased for the six months ended June 30, 2018 primarily due to selling price reductions and unfavorable foreign exchange rate changes partially offset by higher sales volume and favorable geographic mix. See “Reconciliation of Non-GAAP Measures.”

Our sales to wireless operators are volatile. We expect longer-term demand for our CMS products to be positively affected by wireless coverage and capacity expansion in emerging markets and growth in mobile data services and network capacity requirements in developed markets. In addition, we expect demand for our CMS products to be favorably affected by government initiatives to promote the expansion of wireless networks (e.g., FirstNet) over the next few years. We also expect longer-term demand for our CMS products to be positively affected by the introduction of 5G technology. In preparation for 5G networks, we continue to invest heavily in R&D, support customer trials and participate in industry forums to help shape 5G standards. Uncertainty in the global economy or a particular region or consolidation among wireless operators may slow the growth or cause a decline in capital spending by wireless operators and negatively impact our net sales. Despite ongoing pricing pressure, we expect sales growth in the U.S. in 2018.

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LIQUIDITY AND CAPITAL RESOURCES

The following table summarizes certain key measures of our liquidity and capital resources.

	June 30, 2018			December 31, 2017			$ Change		% Change
	(dollars in millions)
Cash and cash equivalents	$	545.7		$	454.0		$	91.7		20.2	%
Working capital (1), excluding cash and cash    equivalents		841.3			766.2			75.1		9.8
Availability under revolving credit facility		506.4			425.4			81.0		19.0
Long-term debt		4,374.2			4,369.4			4.8		0.1
Total capitalization (2)		6,077.5			6,017.2			60.3		1.0
Long-term debt as a percentage of total      capitalization		72.0	%		72.6	%

(1) Working capital consisted of current assets of $2,172.3 million less current liabilities of $785.3 million at June 30, 2018. Working capital consisted of current assets of $1,943.9 million less current liabilities of $723.7 million at December 31, 2017.

(2) Total capitalization includes long-term debt and stockholders’ equity.

Our principal sources of liquidity on a short-term basis are cash and cash equivalents, cash flows provided by operations and availability under credit facilities. On a long-term basis, our potential sources of liquidity also include raising capital through the issuance of debt and/or equity. The primary uses of liquidity include debt service requirements (including voluntary debt repayments or redemptions), funding working capital requirements, funding acquisitions, capital expenditures, paying restructuring costs, income tax payments, funding pension and other postretirement obligations and potential stock repurchases. We believe that our existing cash, cash equivalents and cash flows from operations, combined with availability under our revolving credit facility and access to capital markets, will be sufficient to meet our presently anticipated future cash needs. We may experience volatility in cash flows between periods due to, among other reasons, variability in the timing of vendor payments and customer receipts. We may, from time to time, borrow under our revolving credit facility or issue securities, if market conditions are favorable, to meet future cash needs or to reduce our borrowing costs.

Although there are no financial maintenance covenants under the terms of our senior notes, there is a limitation, among other limitations, on certain future borrowings based on an adjusted leverage ratio or a fixed charge coverage ratio. These ratios are based on financial measures similar to adjusted EBITDA as presented in the “Reconciliation of Non-GAAP Measures” section below, but also give pro forma effect to certain events, including acquisitions and savings from cost reduction initiatives such as facility closures and headcount reductions. For the twelve months ended June 30, 2018, our pro forma adjusted EBITDA, as measured pursuant to the indentures governing our notes, was $956.3 million, which included the impact of the Cable Exchange acquisition and savings from announced cost reduction initiatives (combined total of $15.9 million) so that the impact of the acquisition and cost reduction initiatives is fully reflected in the twelve-month period used in the calculation of the ratios. In addition to limitations under these indentures, our senior secured credit facilities contain customary negative covenants. We believe we are in compliance with the covenants under our indentures and senior secured credit facilities at June 30, 2018.

Cash and cash equivalents increased during the first six months of 2018 mainly due to cash generated by operations offset partially by cash paid for investments in property, plant and equipment and for withholding taxes related to the vesting of equity-based compensation awards. As of June 30, 2018, approximately 59% of our cash and cash equivalents were held outside the U.S.  

Working capital, excluding cash and cash equivalents, increased during the first half of 2018 primarily due to higher accounts receivable balances as of June 30, 2018 compared to December 31, 2017. The increase in accounts receivable was due to the timing of the collection of approximately $60 million of customer payments in late 2017 that were due in the first quarter of 2018 coupled with increased sales in the second quarter of 2018 compared to the fourth quarter of 2017. The working capital increase also reflected higher inventory balances and was partially offset by increases in accounts payable. The net change in total capitalization during the six months ended June 30, 2018 largely reflected current year earnings partially offset by foreign currency translation losses.

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Cash Flow Overview

	Six Months Ended
	June 30,						$			%
	2018			2017			Change			Change
	(in millions)
Net cash generated by operating activities	$	135.1		$	190.0		$	(54.9	)		(28.9	)	%
Net cash used in investing activities		(23.3	)		(18.8	)		(4.5	)		23.9
Net cash used in financing activities		(10.6	)		(129.5	)		118.9			(91.8	)

Operating Activities

During the six months ended June 30, 2018, we generated $135.1 million of cash through operating activities compared to $190.0 million during the six months ended June 30, 2017. The lower level of cash generation was primarily due to lower cash flows from accounts receivable due to the receipt of approximately $60 million of customer payments in late 2017 that were due in the first quarter of 2018. This unfavorable impact to cash generated by operating activities was partially offset by lower payments of incentive compensation during the six months ended June 30, 2018 compared with the prior year period.

Investing Activities

Investment in property, plant and equipment during the six months ended June 30, 2018 was $30.8 million compared with $30.6 million for the prior year period. The investment in property, plant and equipment was primarily related to supporting improvements in manufacturing operations, including expanding production capacity and investing in information technology, including software developed for internal use.

During the six months ended June 30, 2018 and 2017, we sold property and equipment no longer being utilized for $6.2 million and $5.0 million, respectively.

Financing Activities

During the six months ended June 30, 2018, we did not repay any of our debt; however, we will repay $400 million of our senior secured term loan due 2022 (the 2022 Term Loan) on July 31, 2018. The payment is expected to be made using $250 million of cash on hand and $150 million borrowed under our asset-based revolving credit facility. We also expect to voluntarily repay additional debt in the future and may repurchase certain of our senior notes if market conditions are favorable and the applicable indenture and the credit agreements governing the senior secured credit facilities permit such repayment or repurchase. In addition, we may refinance portions of our existing debt to lower borrowing costs, extend the term or adjust the total amount of fixed or floating-rate debt.

As of June 30, 2018, we had no outstanding borrowings under our revolving credit facility and the remaining availability was $506.4 million, reflecting a borrowing base of $527.1 million reduced by $20.7 million of letters of credit issued under the revolving credit facility.

During the six months ended June 30, 2018, we received proceeds of $4.9 million related to the exercise of stock options. Also during the six months ended June 30, 2018, employees surrendered 399,186 shares of our common stock to satisfy their tax withholding requirements on vested restricted stock units and performance share units, which reduced cash flows by $15.5 million.

During the six months ended June 30, 2017, we issued $750.0 million of 5.00% Senior Notes due March 15, 2027 (the 2027 Notes), and the proceeds, together with cash on hand, were used to (i) redeem all $500.0 million of the outstanding 2020 Notes, (ii) repay a portion of the outstanding borrowings under our senior secured term loans, including $111.9 million of outstanding principal on our senior secured term loan due 2018 and $138.1 million of outstanding principal on the 2022 Term Loan, and (iii) pay related fees and expenses. We paid a $14.8 million premium to redeem the 2020 Notes and paid $7.2 million in debt issuance costs related to the 2027 Notes. Also during the six months ended June 30, 2017, we paid cash of $100.0 million to repurchase stock under a stock repurchase program authorized by our Board of Directors in February 2017. In addition, we received proceeds of $8.5 million related to the exercise of stock options and employees surrendered 396,010 shares of our common stock to satisfy their tax withholding requirements on vested restricted stock units, which reduced cash flows by $14.9 million.

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Off-Balance Sheet Arrangements

We are not party to any significant off-balance sheet arrangements except for operating leases. There have not been any material changes to our off-balance sheet arrangements during the six months ended June 30, 2018.

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Reconciliation of Non-GAAP Measures

We believe that presenting certain non-GAAP financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful in assessing our operating performance from period to period by excluding certain items that we believe are not representative of our core business. We also use certain of these financial measures for business planning purposes and in measuring our performance relative to that of our competitors. We believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms non-GAAP adjusted operating income and non-GAAP adjusted EBITDA may vary from that of others in our industry. These financial measures should not be considered as alternatives to operating income (loss), net income (loss) or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance, operating cash flows or liquidity.

We also believe presenting these non-GAAP results for the twelve months ended June 30, 2018 provides an additional tool for assessing our recent performance. Such amounts are unaudited and are derived by subtracting the data for the six months ended June 30, 2017 from the data for the year ended December 31, 2017 and then adding the data for the six months ended June 30, 2018.

Consolidated

	Three Months				Six Months				Year		Twelve Months
	Ended				Ended				Ended		Ended
	June 30,				June 30,				December 31,		June 30,
	2018		2017		2018		2017		2017		2018
	(in millions)
Operating income	$	164.7	$	136.4	$	268.4	$	256.4	$	472.0	$	484.0
Adjustments:
Amortization of purchased    intangible assets		66.4		67.0		133.7		134.6		271.0		270.1
Restructuring costs, net		7.2		13.8		12.7		19.2		43.8		37.3
Equity-based compensation		11.8		11.2		22.4		20.6		41.9		43.7
Integration and transaction    costs (1)		1.0		12.6		2.5		26.2		48.0		24.3
Non-GAAP adjusted operating    income	$	251.1	$	241.0	$	439.7	$	457.0	$	876.7	$	859.4
Depreciation		19.9		20.2		39.5		40.2		81.7		81.0
Non-GAAP adjusted EBITDA	$	271.1	$	261.3	$	479.2	$	497.2	$	958.4	$	940.4

(1) Reflects integration costs related to the acquisition of the BNS business, transaction costs related to potential and consummated acquisitions and costs related to secondary stock offerings.

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CCS Segment

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(in millions)
Operating income	$	85.4	$	74.1	$	138.5	$	121.1
Adjustments:
Amortization of purchased intangible assets		45.0		42.9		90.5		86.5
Restructuring costs, net		4.7		9.6		7.1		14.4
Equity-based compensation		7.2		6.5		13.6		12.0
Integration and transaction costs		0.7		12.5		1.9		26.2
Non-GAAP adjusted operating income	$	142.9	$	145.6	$	251.6	$	260.2

CMS Segment

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(in millions)
Operating income	$	79.3	$	62.3	$	129.9	$	135.3
Adjustments:
Amortization of purchased intangible assets		21.4		24.1		43.2		48.1
Restructuring costs, net		2.5		4.2		5.6		4.8
Equity-based compensation		4.6		4.7		8.8		8.6
Integration and transaction costs		0.3		0.2		0.7		—
Non-GAAP adjusted operating income	$	108.2	$	95.4	$	188.1	$	196.8

Note: Components may not sum to total due to rounding.

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FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q or any other oral or written statements made by us or on our behalf may include forward-looking statements that reflect our current views with respect to future events and financial performance. These forward-looking statements are generally identified by their use of such terms and phrases as “intend,” “goal,” “estimate,” “expect,” “project,” “projections,” “plans,” “anticipate,” “should,” “could,” “designed to,” “foreseeable future,” “believe,” “think,” “scheduled,” “outlook,” “target,” “guidance” and similar expressions, although not all forward-looking statements contain such terms. This list of indicative terms and phrases is not intended to be all-inclusive.

These statements are subject to various risks and uncertainties, many of which are outside our control, including, without limitation, our dependence on customers’ capital spending on data and communication systems; concentration of sales among a limited number of customers and channel partners; changes in technology; industry competition and the ability to retain customers through product innovation, introduction and marketing; risks associated with our sales through channel partners; changes to the regulatory environment in which our customers operate; product quality or performance issues and associated warranty claims; our ability to maintain effective management information systems and to successfully implement major systems initiatives; cyber-security incidents, including data security breaches, ransomware or computer viruses; the risk our global manufacturing operations suffer production or shipping delays, causing difficulty in meeting customer demands; the risk that internal production capacity or that of contract manufacturers may be insufficient to meet customer demand or quality standards; changes in cost and availability of key raw materials, components and commodities and the potential effect on customer pricing; risks associated with our dependence on a limited number of key suppliers for certain raw material and components; the risk that contract manufacturers we rely on encounter production, quality, financial or other difficulties; our ability to integrate and fully realize anticipated benefits from prior or future acquisitions or equity investments; potential difficulties in realigning global manufacturing capacity and capabilities among our global manufacturing facilities that may affect our ability to meet customer demands for products; possible future restructuring actions; substantial indebtedness and maintaining compliance with debt covenants; our ability to incur additional indebtedness; our ability to generate cash to service our indebtedness; possible future impairment charges for fixed or intangible assets, including goodwill; income tax rate variability and ability to recover amounts recorded as deferred tax assets; our ability to attract and retain qualified key employees; labor unrest; obligations under our defined benefit employee benefit plans may require plan contributions in excess of current estimates; significant international operations exposing us to economic, political and other risks, including the impact of variability in foreign exchange rates; our ability to comply with governmental anti-corruption laws and regulations and export and import controls worldwide; our ability to compete in international markets due to export and import controls to which we may be subject; changes in the laws and policies in the United States affecting trade, including the risk and uncertainty related to tariffs or a potential global trade war that may impact our products; costs of protecting or defending intellectual property; costs and challenges of compliance with domestic and foreign environmental laws; risks associated with stockholder activism, which could cause us to incur significant expense, hinder execution of our business strategy and impact the trading value of our securities; and other factors beyond our control. These and other factors are discussed in greater detail in our 2017 Annual Report on Form 10-K. Although the information contained in this Quarterly Report on Form 10-Q represents our best judgment as of the date of this report based on information currently available and reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. Given these uncertainties, we caution you not to place undue reliance on these forward-looking statements, which speak only as of the date made. We are not undertaking any duty or obligation to update this information to reflect developments or information obtained after the date of this report, except as otherwise may be required by law.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the interest rate risk, commodity price risk or foreign currency exchange rate risk information previously reported under Item 7A of our 2017 Annual Report on Form 10-K, as filed with the SEC on February 15, 2018.

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting during the quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

The material set forth under “Commitments and Contingencies” in Note 1 of Notes to the Condensed Consolidated Financial Statements in Part 1, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.

ITEM 1A.  RISK FACTORS

There have been no material changes from our risk factors as previously reported in Item 1A of our 2017 Annual Report on Form 10-K, except as follows:

Potential tariffs or a global trade war could increase the cost of our products, which could adversely impact the competitiveness of our products.

Recently, the United States (U.S.) administration announced tariffs on certain products imported into the U.S., which has resulted in reciprocal tariffs from other countries, including countries where we operate. The U.S. administration has also indicated that the U.S. may withdraw from or renegotiate the North American Free Trade Agreement with Mexico and Canada. Such announcements have created uncertainty about the future relationship between the U.S. and certain of its trading partners and may reduce global trade and trade between the U.S. and other nations, including countries in which we currently operate. Changes in policy or continued uncertainty could depress economic activity and restrict our access to suppliers or customers. We have significant international manufacturing operations, particularly in China and Mexico. If tariffs or trade restrictions are implemented on our products (or on materials, parts or components we use to manufacture our products) by the U.S. or other countries, the cost of our products manufactured in China, Mexico or other countries and imported into the U.S. or other countries could increase. These cost increases could adversely affect the demand for our products and/or reduce margins, which could have a material adverse effect on our business and our earnings.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities: 

None.

Issuer Purchases of Equity Securities:

On August 3, 2017, the Company announced that its Board of Directors had authorized the repurchase of up to $100.0 million of the Company’s outstanding common stock. The program does not obligate the Company to acquire any particular amount of its common stock, and the program may be extended, modified, suspended or discontinued at any time. The repurchase authorization expires on July 31, 2018.

The following table summarizes the stock purchase activity for the three months ended June 30, 2018:

Period	Total Number of Shares Purchased (1)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Value of Shares that May Yet be Purchased Under the Plans or Programs
April 1, 2018 - April 30, 2018		1,575	$	39.52		—	$	25,000,000
May 1, 2018 - May 31, 2018		415	$	27.62		—	$	25,000,000
June 1, 2018 - June 30, 2018		55	$	29.79		—	$	25,000,000
Total		2,045	$	36.84		—

(1) The shares purchased were withheld to satisfy the withholding tax obligations related to restricted stock units and performance share units that vested during the period.

41

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.  OTHER INFORMATION

None.

42

ITEM 6.  EXHIBITS

31.1 **	Certification of Principal Executive Officer pursuant to Rule 13a-14(a).
31.2 **	Certification of Principal Financial Officer pursuant to Rule 13a-14(a).
32.1 **	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished pursuant to Item 601(b)(32)(ii) of Regulation S-K).
101.INS	XBRL Instance Document, furnished herewith.
101.SCH	XBRL Schema Document, furnished herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
**	Filed herewith.

43

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	COMMSCOPE HOLDING COMPANY, INC.
July 30, 2018	/s/ Alexander W. Pease
Date	Alexander W. Pease
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer and duly authorized officer)

44

EX-31.1

Exhibit 31.1

MANAGEMENT CERTIFICATION

I, Marvin S. Edwards, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of CommScope Holding Company, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: July 30, 2018
/s/ Marvin S. Edwards, Jr.
Name:	Marvin S. Edwards, Jr.
Title:	President, Chief Executive Officer and Director (Principal Executive Officer)

EX-31.2

Exhibit 31.2

MANAGEMENT CERTIFICATION

I, Alexander W. Pease, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of CommScope Holding Company, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: July 30, 2018
/s/ Alexander W. Pease
Name:	Alexander W. Pease
Title:	Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CommScope Holding Company, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Marvin S. Edwards, Jr., President, Chief Executive Officer and Director of the Company, and Alexander W. Pease, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350 as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: July 30, 2018

/s/ Marvin S. Edwards, Jr.

Marvin S. Edwards, Jr.

President, Chief Executive Officer and Director

(Principal Executive Officer)

/s/ Alexander W. Pease

Alexander W. Pease

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 13, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	COMM
Entity Registrant Name	CommScope Holding Company, Inc.
Entity Central Index Key	0001517228
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		192,215,154

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net sales	$ 1,239,856	$ 1,174,090	$ 2,360,373	$ 2,311,375
Operating costs and expenses:
Cost of sales	768,546	702,325	1,477,663	1,385,803
Selling, general and administrative	185,197	207,640	370,328	419,461
Research and development	47,765	46,982	97,629	95,970
Amortization of purchased intangible assets	66,442	66,981	133,671	134,619
Restructuring costs, net	7,218	13,773	12,668	19,161
Total operating costs and expenses	1,075,168	1,037,701	2,091,959	2,055,014
Operating income	164,688	136,389	268,414	256,361
Other income (expense), net	(3,094)	2,900	(2,111)	(12,457)
Interest expense	(60,726)	(61,417)	(120,533)	(130,971)
Interest income	2,057	1,730	3,491	2,604
Income before income taxes	102,925	79,602	149,261	115,537
Income tax expense	(37,003)	(24,138)	(49,604)	(26,511)
Net income	$ 65,922	$ 55,464	$ 99,657	$ 89,026
Earnings per share:
Basic	$ 0.34	$ 0.29	$ 0.52	$ 0.46
Diluted	$ 0.34	$ 0.28	$ 0.51	$ 0.45
Weighted average shares outstanding:
Basic	192,162	193,092	191,767	193,555
Diluted	195,186	197,218	195,346	198,173
Comprehensive income (loss):
Net income	$ 65,922	$ 55,464	$ 99,657	$ 89,026
Other comprehensive income (loss), net of tax:
Foreign currency translation gain (loss)	(108,544)	86,749	(61,759)	127,100
Pension and other postretirement benefit activity	(1,291)	(360)	(2,723)	(729)
Gain (loss) on net investment hedge	3,051	(2,996)	2,453	(3,351)
Available-for-sale securities		(2,132)		(823)
Total other comprehensive income (loss), net of tax	(106,784)	81,261	(62,029)	122,197
Total comprehensive income (loss)	$ (40,862)	$ 136,725	$ 37,628	$ 211,223

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 545,701	$ 453,977
Accounts receivable, less allowance for doubtful accounts of $19,123 and $13,976, respectively	1,023,716	898,829
Inventories, net	479,468	444,941
Prepaid expenses and other current assets	123,371	146,112
Total current assets	2,172,256	1,943,859
Property, plant and equipment, net of accumulated depreciation of $413,832 and $390,389, respectively	446,954	467,289
Goodwill	2,866,319	2,886,630
Other intangible assets, net	1,491,007	1,636,084
Other noncurrent assets	129,344	107,804
Total assets	7,105,880	7,041,666
Liabilities and Stockholders' Equity
Accounts payable	487,521	436,737
Other accrued liabilities	297,755	286,980
Total current liabilities	785,276	723,717
Long-term debt	4,374,209	4,369,401
Deferred income taxes	108,529	134,241
Pension and other postretirement benefit liabilities	23,006	25,140
Other noncurrent liabilities	111,591	141,341
Total liabilities	5,402,611	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: 192,214,497 and 190,906,110, respectively	1,989	1,972
Additional paid-in capital	2,361,365	2,334,071
Retained earnings (accumulated deficit)	(290,337)	(395,998)
Accumulated other comprehensive loss	(148,632)	(86,603)
Treasury stock, at cost: 6,735,330 shares and 6,336,144 shares, respectively	(221,116)	(205,616)
Total stockholders' equity	1,703,269	1,647,826
Total liabilities and stockholders' equity	$ 7,105,880	$ 7,041,666

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 19,123	$ 13,976
Property, plant and equipment, accumulated depreciation	$ 413,832	$ 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	192,214,497	190,906,110
Common stock, shares outstanding	192,214,497	190,906,110
Treasury stock, shares	6,735,330	6,336,144

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities:
Net income	$ 99,657	$ 89,026
Adjustments to reconcile net income to net cash generated by operating activities:
Depreciation and amortization	178,349	190,453
Equity-based compensation	22,396	20,598
Deferred income taxes	(24,610)	(14,073)
Changes in assets and liabilities:
Accounts receivable	(137,023)	43,975
Inventories	(47,993)	(42,243)
Prepaid expenses and other assets	(608)	(1,773)
Accounts payable and other liabilities	40,881	(120,777)
Other	4,014	24,847
Net cash generated by operating activities	135,063	190,033
Investing Activities:
Additions to property, plant and equipment	(30,844)	(30,577)
Proceeds from sale of property, plant and equipment	6,225	4,978
Proceeds upon settlement of net investment hedge	1,331
Other		6,778
Net cash used in investing activities	(23,288)	(18,821)
Financing Activities:
Long-term debt repaid		(780,379)
Long-term debt proceeds		780,379
Debt issuance and modification costs		(8,363)
Debt extinguishment costs		(14,800)
Cash paid for repurchase of common stock		(100,000)
Proceeds from the issuance of common shares under equity-based compensation plans	4,915	8,506
Tax withholding payments for vested equity-based compensation awards	(15,500)	(14,858)
Net cash used in financing activities	(10,585)	(129,515)
Effect of exchange rate changes on cash and cash equivalents	(9,466)	14,566
Change in cash and cash equivalents	91,724	56,263
Cash and cash equivalent at beginning of period	453,977	428,228
Cash and cash equivalents at end of period	$ 545,701	$ 484,491

XML

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		2,073,565
Shares surrendered under equity-based compensation plans		(396,010)
Repurchase of common stock		(2,485,520)
Ending balance, Shares at Jun. 30, 2017		193,029,472
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		20	8,486
Equity-based compensation			20,579
Cumulative effect of change in accounting principle			295
Net income	$ 89,026			89,026
Cumulative effect of change in accounting principle				(206)
Other comprehensive income, net of tax	122,197				122,197
Repurchase of common stock						(100,000)
Net shares surrendered under equity-based compensation plans						(14,858)
Ending balance at Jun. 30, 2017	1,519,623	$ 1,970	2,311,374	(500,736)	(162,916)	(130,069)
Ending balance, Shares at Jun. 30, 2017		193,029,472
Net income	55,464
Other comprehensive income, net of tax	81,261
Ending balance at Jun. 30, 2017	$ 1,519,623	$ 1,970	2,311,374	(500,736)	(162,916)	(130,069)
Beginning balance, Shares at Dec. 31, 2017	190,906,110	190,906,110
Issuance of shares under equity-based compensation plans, shares		1,707,573
Shares surrendered under equity-based compensation plans		(399,186)
Ending balance, Shares at Jun. 30, 2018	192,214,497	192,214,497
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		17	4,898
Equity-based compensation			22,396
Net income	99,657			99,657
Cumulative effect of change in accounting principle				6,004
Other comprehensive income, net of tax	(62,029)				(62,029)
Net shares surrendered under equity-based compensation plans						(15,500)
Ending balance at Jun. 30, 2018	$ 1,703,269	$ 1,989	2,361,365	(290,337)	(148,632)	(221,116)
Ending balance, Shares at Jun. 30, 2018	192,214,497	192,214,497
Net income	$ 65,922
Other comprehensive income, net of tax	(106,784)
Ending balance at Jun. 30, 2018	$ 1,703,269	$ 1,989	$ 2,361,365	$ (290,337)	$ (148,632)	$ (221,116)

XML

Background and Basis of Presentation

6 Months Ended

Jun. 30, 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 June 30, 2018, the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2018 and 2017, and the Condensed Consolidated Statements of Cash Flows and Stockholders’ Equity for the six months ended June 30, 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, there were no material changes in the Company’s significant accounting policies during the three or six months ended June 30, 2018. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in the 2017 Annual Report.

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 either at 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 completion of the performance obligation 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-contract 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 performance 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 11% of the Company’s total net sales during both the three and six months ended June 30, 2018. Net sales to Anixter accounted for 12% and 11% of the Company’s total net sales during the three and six months ended June 30, 2017, respectively. Sales to Anixter primarily originate within the CCS segment. Net sales to KGP Companies (KGPCo) accounted for 10% of the Company’s net sales during the three months ended June 30, 2018 but did not exceed 10% for the six months ended June 30, 2018 or the three or six months ended June 30, 2017. KGPCo provides supply chain management to operators deploying wired and wireless networks in the United States (U.S.) and services end-users of both of the Company’s segments. Other than Anixter and KGPCo, no direct customer accounted for 10% or more of the Company’s total net sales for the three or six months ended June 30, 2018 or 2017.

Accounts receivable from Anixter accounted for 10% of the Company’s accounts receivable as of June 30, 2018. Other than Anixter, no direct customer accounted for 10% or more of the Company’s accounts receivable as of June 30, 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						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Product warranty accrual, beginning of period	$	16,150		$	20,180		$	16,928		$	21,631
Provision for warranty claims		458			2,028			1,878			4,231
Warranty claims paid		(1,697	)		(2,029	)		(3,913	)		(5,718	)
Foreign exchange		(65	)		104			(47	)		139
Product warranty accrual, end of period	$	14,846		$	20,283		$	14,846		$	20,283

Commitments and Contingencies

The Company is either a plaintiff or a defendant in certain pending legal matters in the normal course of business. The Company may also be called upon to indemnify certain customers for costs related to products or services sold to such customers. 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 or six months ended June 30, 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 are then measured at fair value if an impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three or six months ended June 30, 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 or six months ended June 30, 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 36.0% and 33.2% for the three and six months ended June 30, 2018, respectively, 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 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 $0.4 million and $4.7 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2018, respectively.

The effective income tax rate of 30.3% and 22.9% for the three and six months ended June 30, 2017, respectively, was lower than the statutory rate of 35.0% primarily due to the favorable impact of $4.4 million and $13.1 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2017, respectively. 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 and six months ended June 30, 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 (2.2 million shares and 1.7 million shares for the three and six months ended June 30, 2018, respectively, and 0.7 million shares and 0.5 million shares for the three and six months ended June 30, 2017, respectively).

The following table presents the basis for the earnings per share computations (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net income for basic and diluted earnings per share	$	65,922	$	55,464	$	99,657	$	89,026
Denominator:
Weighted average common shares outstanding - basic		192,162		193,092		191,767		193,555
Dilutive effect of equity-based awards		3,024		4,126		3,579		4,618
Weighted average common shares outstanding - diluted		195,186		197,218		195,346		198,173
Earnings per share:
Basic	$	0.34	$	0.29	$	0.52	$	0.46
Diluted	$	0.34	$	0.28	$	0.51	$	0.45

Recent Accounting Pronouncements

Adopted During the Six Months Ended June 30, 2018

The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, including all subsequently issued clarifying guidance, on January 1, 2018. The core principle of the new guidance is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company adopted the standard using the modified retrospective approach with the cumulative effect of applying the standard on the date of adoption recognized in retained earnings (accumulated deficit).

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 contracts represented less than 2.0% of total net sales for the three and six months ended June 30, 2018 and 2017. 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 performance obligation. Based on contracts in effect at January 1, 2018, the Company recorded a cumulative effect adjustment, net of tax, of $3.4 million, which reduced 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 June 30, 2018							Six Months Ended June 30, 2018
	As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)			As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)
Net sales	$	1,239,856	$	1,239,800	$	56		$	2,360,373	$	2,362,057	$	(1,684	)
Cost of sales		768,546		768,288		258			1,477,663		1,477,185		478
Operating income		164,688		164,890		(202	)		268,414		270,576		(2,162	)
Income tax expense		37,003		37,028		(25	)		49,604		50,142		(538	)
Net income		65,922		66,099		(177	)		99,657		101,281		(1,624	)

	As of June 30, 2018
	As Reported			Amounts Without Adoption of ASU No. 2014-09			Effect of Change Increase / (Decrease)
Assets:
Accounts receivable, less allowance      for doubtful accounts	$	1,023,716		$	1,020,404		$	3,312
Inventories, net		479,468			483,275			(3,807	)
Liabilities:
Other accrued liabilities		297,755			300,040			(2,285	)
Equity:
Retained earnings (accumulated deficit)		(290,337	)		(292,127	)		1,790

The Company adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018. This new guidance modifies how entities measure equity investments (except those accounted for under the equity method of accounting) and present changes in the fair value of financial liabilities; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; changes presentation and disclosure requirements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Adoption of this new guidance did not have a material impact on the consolidated financial statements.

The Company adopted ASU No. 2016-16, Accounting for Income Taxes, Intra-Entity Asset Transfers of Assets Other than Inventory, on January 1, 2018. Under previous guidance, the tax effects of intra-entity asset transfers were deferred until the transferred asset was sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, the tax effect of an intra-entity asset sale would be recognized when the transfer occurs. The Company recorded a cumulative effect adjustment of $2.6 million as of January 1, 2018 that decreased the accumulated deficit on the Condensed Consolidated Balance Sheets as a result of this new guidance.

The Company adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on January 1, 2018. The new standard requires an employer to report the service cost component of net periodic benefit cost in the same line item as other compensation costs arising from services rendered by the employee and requires the other components of net periodic benefit cost to be reported outside the subtotal of operating income. Of the total $1.3 million of net periodic benefit income for the three months ended June 30, 2018, $2.3 million of net periodic benefit income was recorded in other income (expense), net, and $1.0 million of net periodic benefit cost was recorded within operating income. Of the total $2.4 million of net periodic benefit income for the six months ended June 30, 2018, $4.6 million of net periodic benefit income was recorded in other income (expense), net, and $2.2 million of net periodic benefit cost was recorded within operating income. The Company utilized the practical expedient and used the amounts disclosed in its employee benefit plans note for the three and six months ended June 30, 2017 as the basis for applying the retrospective presentation requirements. The Company reclassified $1.4 million and $2.8 million of net periodic benefit income from operating income to other income (expense), net for the three and six months ended June 30, 2017, respectively. The adoption of this guidance had no impact on the previously reported income before income taxes or net income for the three or six months ended June 30, 2017.

The Company adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities, on January 1, 2018. The new guidance provides targeted improvements to the hedge accounting model intended to allow financial reporting to more closely reflect an entity’s risk management activities and to simplify the application of hedge accounting. Beginning January 1, 2018, the Company has elected to assess the effectiveness of its net investment hedges using the spot rate method. As a result, differences between the spot rate and the forward rate will be amortized on a straight-line basis to other income (expense), net over the life of the contract. See Note 6 for the details on the impact of this change to the financial statements.

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, which allows companies to elect reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the U.S. tax legislation enacted in 2017. ASU No. 2018-02 is effective for the Company as of January 1, 2019 and early adoption is permitted. The Company does not expect to elect the permitted reclassification and therefore does not expect the new guidance to have an impact on the consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test of Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize a goodwill impairment charge for the excess of the reporting unit’s carrying amount over its fair value, up to the amount of goodwill allocated to that reporting unit. ASU No. 2017-04 is effective for the Company as of January 1, 2020 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements and when it may be adopted.

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The new guidance replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. ASU No. 2016-13 is effective for the Company as of January 1, 2020 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements and when it may be adopted.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which 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. ASU No. 2016-02 is effective for the Company as of January 1, 2019. The Company continues to evaluate the impact of adoption on the consolidated financial statements but expects the only significant impact of the ASU to be the recognition of right-of-use assets and lease liabilities.

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Acquisitions

6 Months Ended

Jun. 30, 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 and six months ended June 30, 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.

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Goodwill

6 Months Ended

Jun. 30, 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		(18.9	)		(1.4	)		(20.3	)
Goodwill, gross at June 30, 2018		2,174.3			903.0			3,077.3
Accumulated impairment charges at December 31, 2017    and June 30, 2018		(51.5	)		(159.5	)		(211.0	)
Goodwill, net at June 30, 2018	$	2,122.8		$	743.5		$	2,866.3

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Supplemental Financial Statement Information

6 Months Ended

Jun. 30, 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						Six Months Ended
	June 30, 2018						June 30, 2018
	CCS		CMS		Total		CCS		CMS		Total
Contract type:
Product contracts	$	738.4	$	474.5	$	1,212.9	$	1,410.0	$	899.8	$	2,309.8
Project contracts		0.1		13.5		13.6		0.1		24.0		24.1
Other contracts		2.0		11.4		13.4		4.0		22.5		26.5
Consolidated net sales	$	740.5	$	499.4	$	1,239.9	$	1,414.1	$	946.3	$	2,360.4

Further information on net sales by reportable segment and geographic region is included in Note 8.

Allowance for Doubtful Accounts

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2018			2017		2018			2017
Allowance for doubtful accounts, beginning of period	$	15,107		$	18,103	$	13,976		$	17,211
Charged to costs and expenses		5,058			241		6,524			1,053
Deductions (1)		(1,042	)		494		(1,377	)		574
Allowance for doubtful accounts, end of period	$	19,123		$	18,838	$	19,123		$	18,838

(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 June 30, 2018 and December 31, 2017.

	Balance Sheet Location	June 30, 2018		December 31, 2017
Unbilled accounts receivable	Accounts receivable, less allowance for doubtful accounts	$	4,138	$	—
Deferred revenue	Other accrued liabilities		11,888		12,611

There were no material changes to contract asset balances for the three or six months ended June 30, 2018 as a result of changes in estimates or impairments. The full amount of the deferred revenue balance as of June 30, 2018 was classified as a current liability as the Company expects to recognize these amounts over the next twelve months.

Inventories

	June 30, 2018		December 31, 2017
Raw materials	$	153,106	$	126,558
Work in process		104,706		98,526
Finished goods		221,656		219,857
	$	479,468	$	444,941

Other Accrued Liabilities

	June 30, 2018		December 31, 2017
Compensation and employee benefit liabilities	$	102,292	$	97,522
Accrued interest		18,610		23,485
Deferred revenue		11,888		12,611
Product warranty accrual		14,846		16,928
Restructuring reserve		14,211		24,961
Income taxes payable		23,708		16,949
Purchase price payable		10,717		2,098
Value-added taxes payable		18,683		11,838
Accrued professional fees		9,505		10,224
Other		73,295		70,364
	$	297,755	$	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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Foreign currency translation
Balance at beginning of period	$	(5,985	)	$	(213,797	)	$	(52,770	)	$	(254,148	)
Other comprehensive income (loss)		(108,544	)		86,749			(61,759	)		126,833
Amounts reclassified from AOCL		—			—			—			267
Balance at end of period	$	(114,529	)	$	(127,048	)	$	(114,529	)	$	(127,048	)
Net investment hedge
Balance at beginning of period	$	(5,579	)	$	(355	)	$	(4,981	)	$	—
Other comprehensive income (loss)		3,051			(2,996	)		2,453			(3,351	)
Balance at end of period	$	(2,528	)	$	(3,351	)	$	(2,528	)	$	(3,351	)
Defined benefit plan activity
Balance at beginning of period	$	(30,284	)	$	(33,842	)	$	(28,852	)	$	(33,473	)
Amounts reclassified from AOCL		(1,291	)		(360	)		(2,723	)		(729	)
Balance at end of period	$	(31,575	)	$	(34,202	)	$	(31,575	)	$	(34,202	)
Available-for-sale securities
Balance at beginning of period	$	—		$	3,817		$	—		$	2,508
Other comprehensive income		—			1,616			—			3,314
Amounts reclassified from AOCI		—			(3,748	)		—			(4,137	)
Balance at end of period	$	—		$	1,685		$	—		$	1,685
Net AOCL at end of period	$	(148,632	)	$	(162,916	)	$	(148,632	)	$	(162,916	)

Amounts reclassified from net AOCL related to foreign currency translation, available-for-sale securities and defined benefit plans are recorded in other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Cash Flow Information

	Six Months Ended June 30,
	2018		2017
Cash paid during the period for:
Income taxes, net of refunds	$	63,885	$	77,318
Interest		120,251		105,376

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Financing

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Financing

5. FINANCING

	June 30, 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		(3,092	)		(3,389	)
Less: Debt issuance costs, net of amortization		(58,949	)		(63,460	)
Total long-term debt	$	4,374,209		$	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 Company’s debt obligations. 

Senior Secured Credit Facilities

No portion of the senior secured term loan was reflected as a current portion of long-term debt as of June 30, 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 six months ended June 30, 2018, the Company did not borrow under its revolving credit facility. As of June 30, 2018, the Company had availability of $506.4 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 $2,454 million, or 35%, of total assets and $547 million, or 10%, of total liabilities as of June 30, 2018 and accounted for $471 million, or 38%, and $935 million, or 40%, of net sales for the three and six months ended June 30, 2018, respectively. 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 and six months ended June 30, 2017, the non-guarantor subsidiaries accounted for $471 million, or 40%, and $911 million, or 39%, of net sales, respectively. 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 5.58% and 5.45% at June 30, 2018 and December 31, 2017, respectively.

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 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 June 30, 2018, the Company had foreign exchange contracts outstanding with maturities of up to fourteen months and aggregate notional values of $421 million (based on exchange rates as of June 30, 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	June 30, 2018			December 31, 2017
Foreign currency contracts	Prepaid expenses and other current assets	$	1,908		$	9,050
Foreign currency contracts	Other accrued liabilities		(5,037	)		(574	)
Foreign currency contracts	Other noncurrent liabilities		(309	)		—
Total derivatives not designated as    hedging instruments		$	(3,438	)	$	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 (Loss) is as follows:

Foreign Currency Forward Contracts	Location of Gain (Loss)	Gain (Loss) Recognized
Three Months Ended June 30, 2018	Other income (expense), net	$	(19,441	)
Three Months Ended June 30, 2017	Other income (expense), net	$	12,553
Six Months Ended June 30, 2018	Other income (expense), net	$	(7,561	)
Six Months Ended June 30, 2017	Other income (expense), net	$	14,409

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 June 30, 2018, the Company held designated forward contracts with outstanding maturities of up to six months and an aggregate notional value of $55.0 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. The amortization of the spot-forward differences was not material for the three or six months ended June 30, 2018.

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 (loss), net of tax. As of June 30, 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	June 30, 2018		December 31, 2017
Foreign currency contracts	Prepaid expenses and other current assets	$	2,319	$	—
Foreign currency contracts	Other accrued liabilities		—		(403	)
Total derivatives designated as net    investment hedging instruments		$	2,319	$	(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 (Loss) is as follows:

Foreign Currency Forward Contracts	Location of Gain (Loss)	Effective Portion of Gain (Loss) Recognized
Three Months Ended June 30, 2018	Other comprehensive income (loss), net of tax	$	3,051
Three Months Ended June 30, 2017	Other comprehensive income (loss), net of tax	$	(2,996	)
Six Months Ended June 30, 2018	Other comprehensive income (loss), net of tax	$	2,453
Six Months Ended June 30, 2017	Other comprehensive income (loss), net of tax	$	(3,351	)

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Fair Value Measurements

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 2018 and December 31, 2017, are as follows:

	June 30, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Foreign currency contracts	$	4,227	$	4,227	$	9,050	$	9,050	Level 2
Liabilities:
5.00% senior notes due 2027		750,000		705,975		750,000		753,750	Level 2
6.00% senior notes due 2025		1,500,000		1,531,950		1,500,000		1,591,800	Level 2
5.50% senior notes due 2024		650,000		653,250		650,000		676,780	Level 2
5.00% senior notes due 2021		650,000		650,000		650,000		661,375	Level 2
Senior secured term loan due 2022, at par		886,250		889,551		886,250		892,343	Level 2
Foreign currency contracts		5,346		5,346		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.

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Segments and Geographic Information

6 Months Ended

Jun. 30, 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 data 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):

	June 30, 2018		December 31, 2017
Identifiable segment-related assets:
CCS	$	4,468.5	$	4,546.0
CMS		2,043.5		1,995.8
Total identifiable segment-related assets		6,512.0		6,541.8
Reconciliation to total assets:
Cash and cash equivalents		545.7		454.0
Deferred income tax assets		48.2		45.9
Total assets	$	7,105.9	$	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						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net sales:
CCS	$	740.5		$	725.7		$	1,414.1		$	1,407.3
CMS		499.4			448.4			946.3			904.1
Consolidated net sales	$	1,239.9		$	1,174.1		$	2,360.4		$	2,311.4
Segment adjusted operating income:
CCS	$	142.9		$	145.6		$	251.6		$	260.2
CMS		108.2			95.4			188.1			196.8
Total segment adjusted operating income		251.1			241.0			439.7			457.0
Amortization of intangible assets		(66.4	)		(67.0	)		(133.7	)		(134.6	)
Restructuring costs, net		(7.2	)		(13.8	)		(12.7	)		(19.2	)
Equity-based compensation		(11.8	)		(11.2	)		(22.4	)		(20.6	)
Integration and transaction costs		(1.0	)		(12.6	)		(2.5	)		(26.2	)
Consolidated operating income	$	164.7		$	136.4		$	268.4		$	256.4
Depreciation expense:
CCS	$	14.2		$	14.5		$	28.3		$	28.9
CMS		5.7			5.7			11.2			11.3
Consolidated depreciation expense	$	19.9		$	20.2		$	39.5		$	40.2
Additions to property, plant and equipment:
CCS	$	12.6		$	11.7		$	21.4		$	20.5
CMS		4.6			6.0			9.4			10.1
Consolidated additions to property, plant and equipment	$	17.2		$	17.7		$	30.8		$	30.6

Sales to customers located outside of the U.S. comprised 42.4% and 44.0% of total net sales for the three and six months ended June 30, 2018, respectively, compared to 45.2% and 44.1% of total net sales for the three and six months ended June 30, 2017, respectively. Sales by geographic region, based on the destination of product shipments, were as follows (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
United States	$	714.6	$	643.9	$	1,322.1	$	1,292.2
Europe, Middle East and Africa		253.4		235.8		503.1		467.6
Asia Pacific		183.2		203.8		371.8		385.7
Caribbean and Latin America		61.6		56.1		117.7		114.9
Canada		27.1		34.5		45.7		51.0
Consolidated net sales	$	1,239.9	$	1,174.1	$	2,360.4	$	2,311.4

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Restructuring Costs

6 Months Ended

Jun. 30, 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 include 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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
CCS	$	4,687	$	9,596	$	7,058	$	14,352
CMS		2,531		4,177		5,610		4,809
Total	$	7,218	$	13,773	$	12,668	$	19,161

Restructuring reserves were included in the Company’s Condensed Consolidated Balance Sheets as follows:

	June 30, 2018		December 31, 2017
Other accrued liabilities	$	14,211	$	24,961
Other noncurrent liabilities		5,399		7,036
Total liability	$	19,610	$	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 June 30, 2018, these actions were substantially complete except for a $4.4 million liability for lease termination costs, for which the Company expects to make cash payments of $0.9 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 March 31, 2018	$	16,097		$	904		$	—		$	17,001
Additional charge recorded		7,092			151			(83	)		7,160
Cash paid		(8,131	)		(378	)		(248	)		(8,757	)
Consideration received		—			—			2,235			2,235
Foreign exchange and other non-cash items		(503	)		(25	)		(1,904	)		(2,432	)
Balance at June 30, 2018	$	14,555		$	652		$	—		$	15,207
Balance at December 31, 2017	$	25,588		$	1,080		$	—		$	26,668
Additional charge recorded		11,030			809			708			12,547
Cash paid		(21,823	)		(1,222	)		(395	)		(23,440	)
Consideration received		—			—			4,514			4,514
Foreign exchange and other non-cash items		(240	)		(15	)		(4,827	)		(5,082	)
Balance at June 30, 2018	$	14,555		$	652		$	—		$	15,207

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 $122.2 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 $10.2 million during the remainder of 2018 and additional cash payments of $5.0 million between 2019 and 2022. Future restructuring actions may be identified and the resulting charges and cash requirements may be material.

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

10. EMPLOYEE BENEFIT PLANS

Pension Plans

	Three Months Ended
	June 30,
	U.S. Plans						Non-U.S. Plans
	2018			2017			2018			2017
Service cost	$	—		$	—		$	1,023		$	1,197
Interest cost		1,323			1,490			1,316			1,312
Recognized actuarial loss		120			164			315			378
Amortization of prior service cost		—			—			10			—
Expected return on plan assets		(1,597	)		(1,687	)		(1,954	)		(1,877	)
Net periodic benefit cost (income)	$	(154	)	$	(33	)	$	710		$	1,010

	Six Months Ended
	June 30,
	U.S. Plans						Non-U.S. Plans
	2018			2017			2018			2017
Service cost	$	—		$	—		$	2,187		$	2,361
Interest cost		2,646			2,980			2,669			2,583
Recognized actuarial gain		240			328			635			745
Amortization of prior service credit		—			—			21			—
Expected return on plan assets		(3,194	)		(3,374	)		(3,958	)		(3,696	)
Net periodic benefit cost (income)	$	(308	)	$	(66	)	$	1,554		$	1,993

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 $4.6 million and $5.7 million to its defined benefit pension plans during the three and six months ended June 30, 2018, respectively. During the remainder of 2018, the Company anticipates making additional contributions of approximately $3.4 million to these plans.

During the first quarter of 2018, the Company communicated its intent to terminate a significant U.S. defined benefit pension plan. The Company contributed $3.0 million to the plan during the three and six months ended June 30, 2018, which was needed to substantially fund the termination of the plan, which will be effected through the purchase of annuities. This contribution is included in the contributed amounts 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 $27 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.  

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Stockholders' Equity

6 Months Ended

Jun. 30, 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 or six months ended June 30, 2018. The remaining authorization under the plan was $25.0 million at June 30, 2018 and expires on July 31, 2018.

Equity-Based Compensation Plans

As of June 30, 2018, $80.9 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 1.5 years. There were no significant capitalized equity-based compensation costs at June 30, 2018.

The following table shows the location of equity-based compensation expense on the statement of operations:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Selling, general and administrative	$	9,023	$	8,517	$	17,063	$	15,676
Cost of sales		1,501		1,418		2,833		2,615
Research and development		1,324		1,251		2,500		2,307
Total equity-based compensation expense	$	11,848	$	11,186	$	22,396	$	20,598

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 and years):

	Shares			Weighted Average Option Exercise Price Per Share		Weighted Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
Options outstanding at March 31, 2018		4,901		$	15.21
Granted		33		$	39.46
Exercised		(102	)	$	9.70
Forfeited		(48	)	$	34.73
Options outstanding at June 30, 2018		4,784		$	15.30		4.3	$	75,053
Options outstanding at December 31, 2017		4,830		$	13.01
Granted		477		$	38.42
Exercised		(432	)	$	11.37
Forfeited		(91	)	$	33.60
Options outstanding at June 30, 2018		4,784		$	15.30		4.3	$	75,053
Options vested at June 30, 2018		3,957		$	10.80		3.3	$	74,702
Options unvested at June 30, 2018		827		$	36.80		9.1	$	351

The exercise prices of outstanding options at June 30, 2018 were in the following ranges (in thousands, except per share data and years):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$2.96 to $5.74		2,502		2.4	$	5.42		2,502	$	5.42
$5.75 to $22.99		653		1.9	$	8.58		653	$	8.58
$23.00 to $42.32		1,629		8.1	$	33.16		802	$	29.40
$2.96 to $42.32		4,784		4.3	$	15.30		3,957	$	10.80

The Company uses the Black-Scholes model to estimate the fair value of stock option awards at the date of grant. Key inputs and assumptions used in the model include the grant date fair value of common stock, exercise price of the award, the expected option term, the risk-free interest rate, stock price volatility and the Company’s projected dividend yield. The expected term represents the period over which the Company’s employees are expected to hold their options. The risk-free interest rate reflects the yield on zero-coupon U.S. treasury securities with a term equal to the option’s expected term. Expected volatility is derived based on the historical volatility of the Company’s stock. The Company’s projected dividend yield is zero. The Company believes the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair values of its stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards. Subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

The following table presents the weighted average assumptions used to estimate the fair value of stock option awards granted during the three and six months ended June 30, 2018 and 2017.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018			2017
Expected option term (in years)		6.0		6.0		6.0			6.0
Risk-free interest rate		2.6%		2.0%		2.7	%		2.0	%
Expected volatility		35.0%		40.0%		35.0	%		40.0	%
Weighted average exercise price	$	39.46	$	42.32	$	38.42		$	38.00
Weighted average fair value at grant date	$	15.19	$	17.48	$	14.86		$	15.72

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 March 31, 2018		2,217		$	35.51
Granted		54		$	30.77
Vested and shares issued		(36	)	$	35.02
Forfeited		(80	)	$	34.64
Non-vested RSUs at June 30, 2018		2,155		$	35.43
Non-vested RSUs at December 31, 2017		2,279		$	31.83
Granted		1,120		$	37.98
Vested and shares issued		(1,073	)	$	30.77
Forfeited		(171	)	$	33.35
Non-vested RSUs at June 30, 2018		2,155		$	35.43

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 March 31, 2018		300		$	33.45
Granted		13		$	39.46
Vested and shares issued		(1	)	$	27.64
Forfeited		(18	)	$	28.01
Non-vested PSUs at June 30, 2018		294		$	34.07
Non-vested PSUs at December 31, 2017		344		$	26.75
Granted		184		$	38.42
Vested and shares issued		(203	)	$	26.80
Forfeited		(31	)	$	26.27
Non-vested PSUs at June 30, 2018		294		$	34.07

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Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

12. SUBSEQUENT EVENTS

The Company will repay $400 million of its senior secured term loan due 2022 on July 31, 2018. The payment is expected to be made using $250 million of cash on hand and $150 million borrowed under the Company’s asset-based revolving credit facility.

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Background and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Condensed Consolidated Balance Sheet as of June 30, 2018, the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2018 and 2017, and the Condensed Consolidated Statements of Cash Flows and Stockholders’ Equity for the six months ended June 30, 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, there were no material changes in the Company’s significant accounting policies during the three or six months ended June 30, 2018. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in the 2017 Annual Report.

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 either at 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 completion of the performance obligation 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-contract 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 performance 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 11% of the Company’s total net sales during both the three and six months ended June 30, 2018. Net sales to Anixter accounted for 12% and 11% of the Company’s total net sales during the three and six months ended June 30, 2017, respectively. Sales to Anixter primarily originate within the CCS segment. Net sales to KGP Companies (KGPCo) accounted for 10% of the Company’s net sales during the three months ended June 30, 2018 but did not exceed 10% for the six months ended June 30, 2018 or the three or six months ended June 30, 2017. KGPCo provides supply chain management to operators deploying wired and wireless networks in the United States (U.S.) and services end-users of both of the Company’s segments. Other than Anixter and KGPCo, no direct customer accounted for 10% or more of the Company’s total net sales for the three or six months ended June 30, 2018 or 2017.

Accounts receivable from Anixter accounted for 10% of the Company’s accounts receivable as of June 30, 2018. Other than Anixter, no direct customer accounted for 10% or more of the Company’s accounts receivable as of June 30, 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						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Product warranty accrual, beginning of period	$	16,150		$	20,180		$	16,928		$	21,631
Provision for warranty claims		458			2,028			1,878			4,231
Warranty claims paid		(1,697	)		(2,029	)		(3,913	)		(5,718	)
Foreign exchange		(65	)		104			(47	)		139
Product warranty accrual, end of period	$	14,846		$	20,283		$	14,846		$	20,283

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. The Company may also be called upon to indemnify certain customers for costs related to products or services sold to such customers. 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 or six months ended June 30, 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 are then measured at fair value if an impairment is determined to exist. Other than certain assets impaired as a result of restructuring actions, there were no definite-lived intangible or other long-lived asset impairments identified during the three or six months ended June 30, 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 or six months ended June 30, 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 36.0% and 33.2% for the three and six months ended June 30, 2018, respectively, 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 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 $0.4 million and $4.7 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2018, respectively.

The effective income tax rate of 30.3% and 22.9% for the three and six months ended June 30, 2017, respectively, was lower than the statutory rate of 35.0% primarily due to the favorable impact of $4.4 million and $13.1 million of excess tax benefits related to equity-based compensation awards for the three and six months ended June 30, 2017, respectively. 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 and six months ended June 30, 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 (2.2 million shares and 1.7 million shares for the three and six months ended June 30, 2018, respectively, and 0.7 million shares and 0.5 million shares for the three and six months ended June 30, 2017, respectively).

The following table presents the basis for the earnings per share computations (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net income for basic and diluted earnings per share	$	65,922	$	55,464	$	99,657	$	89,026
Denominator:
Weighted average common shares outstanding - basic		192,162		193,092		191,767		193,555
Dilutive effect of equity-based awards		3,024		4,126		3,579		4,618
Weighted average common shares outstanding - diluted		195,186		197,218		195,346		198,173
Earnings per share:
Basic	$	0.34	$	0.29	$	0.52	$	0.46
Diluted	$	0.34	$	0.28	$	0.51	$	0.45

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Adopted During the Six Months Ended June 30, 2018

The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, including all subsequently issued clarifying guidance, on January 1, 2018. The core principle of the new guidance is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company adopted the standard using the modified retrospective approach with the cumulative effect of applying the standard on the date of adoption recognized in retained earnings (accumulated deficit).

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 contracts represented less than 2.0% of total net sales for the three and six months ended June 30, 2018 and 2017. 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 performance obligation. Based on contracts in effect at January 1, 2018, the Company recorded a cumulative effect adjustment, net of tax, of $3.4 million, which reduced 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 June 30, 2018							Six Months Ended June 30, 2018
	As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)			As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)
Net sales	$	1,239,856	$	1,239,800	$	56		$	2,360,373	$	2,362,057	$	(1,684	)
Cost of sales		768,546		768,288		258			1,477,663		1,477,185		478
Operating income		164,688		164,890		(202	)		268,414		270,576		(2,162	)
Income tax expense		37,003		37,028		(25	)		49,604		50,142		(538	)
Net income		65,922		66,099		(177	)		99,657		101,281		(1,624	)

	As of June 30, 2018
	As Reported			Amounts Without Adoption of ASU No. 2014-09			Effect of Change Increase / (Decrease)
Assets:
Accounts receivable, less allowance      for doubtful accounts	$	1,023,716		$	1,020,404		$	3,312
Inventories, net		479,468			483,275			(3,807	)
Liabilities:
Other accrued liabilities		297,755			300,040			(2,285	)
Equity:
Retained earnings (accumulated deficit)		(290,337	)		(292,127	)		1,790

The Company adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018. This new guidance modifies how entities measure equity investments (except those accounted for under the equity method of accounting) and present changes in the fair value of financial liabilities; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; changes presentation and disclosure requirements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Adoption of this new guidance did not have a material impact on the consolidated financial statements.

The Company adopted ASU No. 2016-16, Accounting for Income Taxes, Intra-Entity Asset Transfers of Assets Other than Inventory, on January 1, 2018. Under previous guidance, the tax effects of intra-entity asset transfers were deferred until the transferred asset was sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, the tax effect of an intra-entity asset sale would be recognized when the transfer occurs. The Company recorded a cumulative effect adjustment of $2.6 million as of January 1, 2018 that decreased the accumulated deficit on the Condensed Consolidated Balance Sheets as a result of this new guidance.

The Company adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on January 1, 2018. The new standard requires an employer to report the service cost component of net periodic benefit cost in the same line item as other compensation costs arising from services rendered by the employee and requires the other components of net periodic benefit cost to be reported outside the subtotal of operating income. Of the total $1.3 million of net periodic benefit income for the three months ended June 30, 2018, $2.3 million of net periodic benefit income was recorded in other income (expense), net, and $1.0 million of net periodic benefit cost was recorded within operating income. Of the total $2.4 million of net periodic benefit income for the six months ended June 30, 2018, $4.6 million of net periodic benefit income was recorded in other income (expense), net, and $2.2 million of net periodic benefit cost was recorded within operating income. The Company utilized the practical expedient and used the amounts disclosed in its employee benefit plans note for the three and six months ended June 30, 2017 as the basis for applying the retrospective presentation requirements. The Company reclassified $1.4 million and $2.8 million of net periodic benefit income from operating income to other income (expense), net for the three and six months ended June 30, 2017, respectively. The adoption of this guidance had no impact on the previously reported income before income taxes or net income for the three or six months ended June 30, 2017.

The Company adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities, on January 1, 2018. The new guidance provides targeted improvements to the hedge accounting model intended to allow financial reporting to more closely reflect an entity’s risk management activities and to simplify the application of hedge accounting. Beginning January 1, 2018, the Company has elected to assess the effectiveness of its net investment hedges using the spot rate method. As a result, differences between the spot rate and the forward rate will be amortized on a straight-line basis to other income (expense), net over the life of the contract. See Note 6 for the details on the impact of this change to the financial statements.

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, which allows companies to elect reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the U.S. tax legislation enacted in 2017. ASU No. 2018-02 is effective for the Company as of January 1, 2019 and early adoption is permitted. The Company does not expect to elect the permitted reclassification and therefore does not expect the new guidance to have an impact on the consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test of Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize a goodwill impairment charge for the excess of the reporting unit’s carrying amount over its fair value, up to the amount of goodwill allocated to that reporting unit. ASU No. 2017-04 is effective for the Company as of January 1, 2020 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements and when it may be adopted.

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The new guidance replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. ASU No. 2016-13 is effective for the Company as of January 1, 2020 and early adoption is permitted. The Company is evaluating the impact of the new guidance on the consolidated financial statements and when it may be adopted.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which 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. ASU No. 2016-02 is effective for the Company as of January 1, 2019. The Company continues to evaluate the impact of adoption on the consolidated financial statements but expects the only significant impact of the ASU to be the recognition of right-of-use assets and lease liabilities.

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Background and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 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						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Product warranty accrual, beginning of period	$	16,150		$	20,180		$	16,928		$	21,631
Provision for warranty claims		458			2,028			1,878			4,231
Warranty claims paid		(1,697	)		(2,029	)		(3,913	)		(5,718	)
Foreign exchange		(65	)		104			(47	)		139
Product warranty accrual, end of period	$	14,846		$	20,283		$	14,846		$	20,283

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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net income for basic and diluted earnings per share	$	65,922	$	55,464	$	99,657	$	89,026
Denominator:
Weighted average common shares outstanding - basic		192,162		193,092		191,767		193,555
Dilutive effect of equity-based awards		3,024		4,126		3,579		4,618
Weighted average common shares outstanding - diluted		195,186		197,218		195,346		198,173
Earnings per share:
Basic	$	0.34	$	0.29	$	0.52	$	0.46
Diluted	$	0.34	$	0.28	$	0.51	$	0.45

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 June 30, 2018							Six Months Ended June 30, 2018
	As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)			As Reported		Amounts Without Adoption of ASU No. 2014-09		Effect of Change Increase / (Decrease)
Net sales	$	1,239,856	$	1,239,800	$	56		$	2,360,373	$	2,362,057	$	(1,684	)
Cost of sales		768,546		768,288		258			1,477,663		1,477,185		478
Operating income		164,688		164,890		(202	)		268,414		270,576		(2,162	)
Income tax expense		37,003		37,028		(25	)		49,604		50,142		(538	)
Net income		65,922		66,099		(177	)		99,657		101,281		(1,624	)

	As of June 30, 2018
	As Reported			Amounts Without Adoption of ASU No. 2014-09			Effect of Change Increase / (Decrease)
Assets:
Accounts receivable, less allowance      for doubtful accounts	$	1,023,716		$	1,020,404		$	3,312
Inventories, net		479,468			483,275			(3,807	)
Liabilities:
Other accrued liabilities		297,755			300,040			(2,285	)
Equity:
Retained earnings (accumulated deficit)		(290,337	)		(292,127	)		1,790

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 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

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Goodwill (Tables)

6 Months Ended

Jun. 30, 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		(18.9	)		(1.4	)		(20.3	)
Goodwill, gross at June 30, 2018		2,174.3			903.0			3,077.3
Accumulated impairment charges at December 31, 2017    and June 30, 2018		(51.5	)		(159.5	)		(211.0	)
Goodwill, net at June 30, 2018	$	2,122.8		$	743.5		$	2,866.3

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Supplemental Financial Statement Information (Tables)

6 Months Ended

Jun. 30, 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						Six Months Ended
	June 30, 2018						June 30, 2018
	CCS		CMS		Total		CCS		CMS		Total
Contract type:
Product contracts	$	738.4	$	474.5	$	1,212.9	$	1,410.0	$	899.8	$	2,309.8
Project contracts		0.1		13.5		13.6		0.1		24.0		24.1
Other contracts		2.0		11.4		13.4		4.0		22.5		26.5
Consolidated net sales	$	740.5	$	499.4	$	1,239.9	$	1,414.1	$	946.3	$	2,360.4

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2018			2017		2018			2017
Allowance for doubtful accounts, beginning of period	$	15,107		$	18,103	$	13,976		$	17,211
Charged to costs and expenses		5,058			241		6,524			1,053
Deductions (1)		(1,042	)		494		(1,377	)		574
Allowance for doubtful accounts, end of period	$	19,123		$	18,838	$	19,123		$	18,838

(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 June 30, 2018 and December 31, 2017.

	Balance Sheet Location	June 30, 2018		December 31, 2017
Unbilled accounts receivable	Accounts receivable, less allowance for doubtful accounts	$	4,138	$	—
Deferred revenue	Other accrued liabilities		11,888		12,611

Inventories

Inventories

	June 30, 2018		December 31, 2017
Raw materials	$	153,106	$	126,558
Work in process		104,706		98,526
Finished goods		221,656		219,857
	$	479,468	$	444,941

Other Accrued Liabilities

Other Accrued Liabilities

	June 30, 2018		December 31, 2017
Compensation and employee benefit liabilities	$	102,292	$	97,522
Accrued interest		18,610		23,485
Deferred revenue		11,888		12,611
Product warranty accrual		14,846		16,928
Restructuring reserve		14,211		24,961
Income taxes payable		23,708		16,949
Purchase price payable		10,717		2,098
Value-added taxes payable		18,683		11,838
Accrued professional fees		9,505		10,224
Other		73,295		70,364
	$	297,755	$	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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Foreign currency translation
Balance at beginning of period	$	(5,985	)	$	(213,797	)	$	(52,770	)	$	(254,148	)
Other comprehensive income (loss)		(108,544	)		86,749			(61,759	)		126,833
Amounts reclassified from AOCL		—			—			—			267
Balance at end of period	$	(114,529	)	$	(127,048	)	$	(114,529	)	$	(127,048	)
Net investment hedge
Balance at beginning of period	$	(5,579	)	$	(355	)	$	(4,981	)	$	—
Other comprehensive income (loss)		3,051			(2,996	)		2,453			(3,351	)
Balance at end of period	$	(2,528	)	$	(3,351	)	$	(2,528	)	$	(3,351	)
Defined benefit plan activity
Balance at beginning of period	$	(30,284	)	$	(33,842	)	$	(28,852	)	$	(33,473	)
Amounts reclassified from AOCL		(1,291	)		(360	)		(2,723	)		(729	)
Balance at end of period	$	(31,575	)	$	(34,202	)	$	(31,575	)	$	(34,202	)
Available-for-sale securities
Balance at beginning of period	$	—		$	3,817		$	—		$	2,508
Other comprehensive income		—			1,616			—			3,314
Amounts reclassified from AOCI		—			(3,748	)		—			(4,137	)
Balance at end of period	$	—		$	1,685		$	—		$	1,685
Net AOCL at end of period	$	(148,632	)	$	(162,916	)	$	(148,632	)	$	(162,916	)

Cash Flow Information

Cash Flow Information

	Six Months Ended June 30,
	2018		2017
Cash paid during the period for:
Income taxes, net of refunds	$	63,885	$	77,318
Interest		120,251		105,376

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Financing (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of Debt

	June 30, 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		(3,092	)		(3,389	)
Less: Debt issuance costs, net of amortization		(58,949	)		(63,460	)
Total long-term debt	$	4,374,209		$	4,369,401

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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	June 30, 2018			December 31, 2017
Foreign currency contracts	Prepaid expenses and other current assets	$	1,908		$	9,050
Foreign currency contracts	Other accrued liabilities		(5,037	)		(574	)
Foreign currency contracts	Other noncurrent liabilities		(309	)		—
Total derivatives not designated as    hedging instruments		$	(3,438	)	$	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 (Loss) is as follows:

Foreign Currency Forward Contracts	Location of Gain (Loss)	Gain (Loss) Recognized
Three Months Ended June 30, 2018	Other income (expense), net	$	(19,441	)
Three Months Ended June 30, 2017	Other income (expense), net	$	12,553
Six Months Ended June 30, 2018	Other income (expense), net	$	(7,561	)
Six Months Ended June 30, 2017	Other income (expense), net	$	14,409

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	June 30, 2018		December 31, 2017
Foreign currency contracts	Prepaid expenses and other current assets	$	2,319	$	—
Foreign currency contracts	Other accrued liabilities		—		(403	)
Total derivatives designated as net    investment hedging instruments		$	2,319	$	(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 (Loss) is as follows:

Foreign Currency Forward Contracts	Location of Gain (Loss)	Effective Portion of Gain (Loss) Recognized
Three Months Ended June 30, 2018	Other comprehensive income (loss), net of tax	$	3,051
Three Months Ended June 30, 2017	Other comprehensive income (loss), net of tax	$	(2,996	)
Six Months Ended June 30, 2018	Other comprehensive income (loss), net of tax	$	2,453
Six Months Ended June 30, 2017	Other comprehensive income (loss), net of tax	$	(3,351	)

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2018 and December 31, 2017, are as follows:

	June 30, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Valuation Inputs
Assets:
Foreign currency contracts	$	4,227	$	4,227	$	9,050	$	9,050	Level 2
Liabilities:
5.00% senior notes due 2027		750,000		705,975		750,000		753,750	Level 2
6.00% senior notes due 2025		1,500,000		1,531,950		1,500,000		1,591,800	Level 2
5.50% senior notes due 2024		650,000		653,250		650,000		676,780	Level 2
5.00% senior notes due 2021		650,000		650,000		650,000		661,375	Level 2
Senior secured term loan due 2022, at par		886,250		889,551		886,250		892,343	Level 2
Foreign currency contracts		5,346		5,346		977		977	Level 2

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Segments and Geographic Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Summary of Financial Information by Reportable Segment

The following table provides summary financial information by reportable segment (in millions):

	June 30, 2018		December 31, 2017
Identifiable segment-related assets:
CCS	$	4,468.5	$	4,546.0
CMS		2,043.5		1,995.8
Total identifiable segment-related assets		6,512.0		6,541.8
Reconciliation to total assets:
Cash and cash equivalents		545.7		454.0
Deferred income tax assets		48.2		45.9
Total assets	$	7,105.9	$	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						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net sales:
CCS	$	740.5		$	725.7		$	1,414.1		$	1,407.3
CMS		499.4			448.4			946.3			904.1
Consolidated net sales	$	1,239.9		$	1,174.1		$	2,360.4		$	2,311.4
Segment adjusted operating income:
CCS	$	142.9		$	145.6		$	251.6		$	260.2
CMS		108.2			95.4			188.1			196.8
Total segment adjusted operating income		251.1			241.0			439.7			457.0
Amortization of intangible assets		(66.4	)		(67.0	)		(133.7	)		(134.6	)
Restructuring costs, net		(7.2	)		(13.8	)		(12.7	)		(19.2	)
Equity-based compensation		(11.8	)		(11.2	)		(22.4	)		(20.6	)
Integration and transaction costs		(1.0	)		(12.6	)		(2.5	)		(26.2	)
Consolidated operating income	$	164.7		$	136.4		$	268.4		$	256.4
Depreciation expense:
CCS	$	14.2		$	14.5		$	28.3		$	28.9
CMS		5.7			5.7			11.2			11.3
Consolidated depreciation expense	$	19.9		$	20.2		$	39.5		$	40.2
Additions to property, plant and equipment:
CCS	$	12.6		$	11.7		$	21.4		$	20.5
CMS		4.6			6.0			9.4			10.1
Consolidated additions to property, plant and equipment	$	17.2		$	17.7		$	30.8		$	30.6

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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
United States	$	714.6	$	643.9	$	1,322.1	$	1,292.2
Europe, Middle East and Africa		253.4		235.8		503.1		467.6
Asia Pacific		183.2		203.8		371.8		385.7
Caribbean and Latin America		61.6		56.1		117.7		114.9
Canada		27.1		34.5		45.7		51.0
Consolidated net sales	$	1,239.9	$	1,174.1	$	2,360.4	$	2,311.4

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Restructuring Costs (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Company's Net Pretax Restructuring Charges

The Company’s net pretax restructuring charges, by segment, were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
CCS	$	4,687	$	9,596	$	7,058	$	14,352
CMS		2,531		4,177		5,610		4,809
Total	$	7,218	$	13,773	$	12,668	$	19,161

Restructuring Reserves Included in Company's Condensed Consolidated Balance Sheets

Restructuring reserves were included in the Company’s Condensed Consolidated Balance Sheets as follows:

	June 30, 2018		December 31, 2017
Other accrued liabilities	$	14,211	$	24,961
Other noncurrent liabilities		5,399		7,036
Total liability	$	19,610	$	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 March 31, 2018	$	16,097		$	904		$	—		$	17,001
Additional charge recorded		7,092			151			(83	)		7,160
Cash paid		(8,131	)		(378	)		(248	)		(8,757	)
Consideration received		—			—			2,235			2,235
Foreign exchange and other non-cash items		(503	)		(25	)		(1,904	)		(2,432	)
Balance at June 30, 2018	$	14,555		$	652		$	—		$	15,207
Balance at December 31, 2017	$	25,588		$	1,080		$	—		$	26,668
Additional charge recorded		11,030			809			708			12,547
Cash paid		(21,823	)		(1,222	)		(395	)		(23,440	)
Consideration received		—			—			4,514			4,514
Foreign exchange and other non-cash items		(240	)		(15	)		(4,827	)		(5,082	)
Balance at June 30, 2018	$	14,555		$	652		$	—		$	15,207

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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Summary of Pension Plans

Pension Plans

	Three Months Ended
	June 30,
	U.S. Plans						Non-U.S. Plans
	2018			2017			2018			2017
Service cost	$	—		$	—		$	1,023		$	1,197
Interest cost		1,323			1,490			1,316			1,312
Recognized actuarial loss		120			164			315			378
Amortization of prior service cost		—			—			10			—
Expected return on plan assets		(1,597	)		(1,687	)		(1,954	)		(1,877	)
Net periodic benefit cost (income)	$	(154	)	$	(33	)	$	710		$	1,010

	Six Months Ended
	June 30,
	U.S. Plans						Non-U.S. Plans
	2018			2017			2018			2017
Service cost	$	—		$	—		$	2,187		$	2,361
Interest cost		2,646			2,980			2,669			2,583
Recognized actuarial gain		240			328			635			745
Amortization of prior service credit		—			—			21			—
Expected return on plan assets		(3,194	)		(3,374	)		(3,958	)		(3,696	)
Net periodic benefit cost (income)	$	(308	)	$	(66	)	$	1,554		$	1,993

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Summary of Location of Equity-Based Compensation Expense on Statement of Operations

The following table shows the location of equity-based compensation expense on the statement of operations:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Selling, general and administrative	$	9,023	$	8,517	$	17,063	$	15,676
Cost of sales		1,501		1,418		2,833		2,615
Research and development		1,324		1,251		2,500		2,307
Total equity-based compensation expense	$	11,848	$	11,186	$	22,396	$	20,598

Summary of Stock Option Activity

The following table summarizes the stock option activity (in thousands, except per share data and years):

	Shares			Weighted Average Option Exercise Price Per Share		Weighted Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
Options outstanding at March 31, 2018		4,901		$	15.21
Granted		33		$	39.46
Exercised		(102	)	$	9.70
Forfeited		(48	)	$	34.73
Options outstanding at June 30, 2018		4,784		$	15.30		4.3	$	75,053
Options outstanding at December 31, 2017		4,830		$	13.01
Granted		477		$	38.42
Exercised		(432	)	$	11.37
Forfeited		(91	)	$	33.60
Options outstanding at June 30, 2018		4,784		$	15.30		4.3	$	75,053
Options vested at June 30, 2018		3,957		$	10.80		3.3	$	74,702
Options unvested at June 30, 2018		827		$	36.80		9.1	$	351

Summary of Exercise Price

The exercise prices of outstanding options at June 30, 2018 were in the following ranges (in thousands, except per share data and years):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$2.96 to $5.74		2,502		2.4	$	5.42		2,502	$	5.42
$5.75 to $22.99		653		1.9	$	8.58		653	$	8.58
$23.00 to $42.32		1,629		8.1	$	33.16		802	$	29.40
$2.96 to $42.32		4,784		4.3	$	15.30		3,957	$	10.80

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 and six months ended June 30, 2018 and 2017.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018			2017
Expected option term (in years)		6.0		6.0		6.0			6.0
Risk-free interest rate		2.6%		2.0%		2.7	%		2.0	%
Expected volatility		35.0%		40.0%		35.0	%		40.0	%
Weighted average exercise price	$	39.46	$	42.32	$	38.42		$	38.00
Weighted average fair value at grant date	$	15.19	$	17.48	$	14.86		$	15.72

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 March 31, 2018		2,217		$	35.51
Granted		54		$	30.77
Vested and shares issued		(36	)	$	35.02
Forfeited		(80	)	$	34.64
Non-vested RSUs at June 30, 2018		2,155		$	35.43
Non-vested RSUs at December 31, 2017		2,279		$	31.83
Granted		1,120		$	37.98
Vested and shares issued		(1,073	)	$	30.77
Forfeited		(171	)	$	33.35
Non-vested RSUs at June 30, 2018		2,155		$	35.43

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 March 31, 2018		300		$	33.45
Granted		13		$	39.46
Vested and shares issued		(1	)	$	27.64
Forfeited		(18	)	$	28.01
Non-vested PSUs at June 30, 2018		294		$	34.07
Non-vested PSUs at December 31, 2017		344		$	26.75
Granted		184		$	38.42
Vested and shares issued		(203	)	$	26.80
Forfeited		(31	)	$	26.27
Non-vested PSUs at June 30, 2018		294		$	34.07

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Background and Basis of Presentation - Additional Information (Detail) shares in Millions		3 Months Ended				6 Months Ended
	Dec. 22, 2017	Jun. 30, 2018 USD ($) shares	Mar. 31, 2018 USD ($) Customer	Jun. 30, 2017 USD ($) Customer shares	Mar. 31, 2017 USD ($)	Jun. 30, 2018 USD ($) Customer shares	Jun. 30, 2017 USD ($) Customer shares	Jan. 01, 2018 USD ($)
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		$ 0	$ 0
Intangible asset impairment charges, excluding goodwill			$ 0		$ 0	0	0
Other long-Lived assets Impairments			$ 0		$ 0	$ 0	$ 0
Statutory tax rate						21.00%	35.00%
Effective income tax rate		36.00%		30.30%		33.20%	22.90%
Impact of recent accounting pronouncements		$ 400,000		$ 4,400,000		$ 4,700,000	$ 13,100,000
Net periodic benefit cost (income)		1,300,000				2,400,000
Other Income (Expense), Net [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net periodic benefit cost (income)		2,300,000				4,600,000
Operating Income [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net periodic benefit cost (income)		1,000,000				2,200,000
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				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			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			$ 2,800,000
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		2.2		0.7		1.7	0.5
U.S. Tax Reform Legislation [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Statutory tax rate	21.00%
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
Minimum [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Product warranties expiration term						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			11.00%	12.00%		11.00%	11.00%
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		0	0
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | KGP Companies [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk percentage			10.00%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | KGP Companies [Member] | Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk percentage				10.00%		10.00%	10.00%
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] | Integrated Product and Service Obligations [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Concentration risk percentage		2.00%		2.00%		2.00%	2.00%

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Background and Basis of Presentation - Summary of Activity in Product Warranty Accrual, Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Product warranty accrual, beginning of period	$ 16,150	$ 20,180	$ 16,928	$ 21,631
Provision for warranty claims	458	2,028	1,878	4,231
Warranty claims paid	(1,697)	(2,029)	(3,913)	(5,718)
Foreign exchange	(65)	104	(47)	139
Product warranty accrual, end of period	$ 14,846	$ 20,283	$ 14,846	$ 20,283

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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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income for basic and diluted earnings per share	$ 65,922	$ 55,464	$ 99,657	$ 89,026
Denominator:
Weighted average common shares outstanding - basic	192,162	193,092	191,767	193,555
Dilutive effect of equity-based awards	3,024	4,126	3,579	4,618
Weighted average common shares outstanding - diluted	195,186	197,218	195,346	198,173
Earnings per share:
Basic	$ 0.34	$ 0.29	$ 0.52	$ 0.46
Diluted	$ 0.34	$ 0.28	$ 0.51	$ 0.45

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Background and Basis of Presentation - Summary of New Revenue Recognition Standard on Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net sales	$ 1,239,856	$ 1,174,090	$ 2,360,373	$ 2,311,375
Cost of sales	768,546	702,325	1,477,663	1,385,803
Operating income	164,688	136,389	268,414	256,361
Income tax expense	37,003	24,138	49,604	26,511
Net income	65,922	$ 55,464	99,657	$ 89,026
Assets
Accounts receivable, less allowance for doubtful accounts	1,023,716		1,023,716		$ 898,829
Inventories, net	479,468		479,468		444,941
Liabilities:
Other accrued liabilities	297,755		297,755		286,980
Stockholders' equity:
Retained earnings (accumulated deficit)	(290,337)		(290,337)		$ (395,998)
Amounts Without Adoption of ASU No. 2014-09 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net sales	1,239,800		2,362,057
Cost of sales	768,288		1,477,185
Operating income	164,890		270,576
Income tax expense	37,028		50,142
Net income	66,099		101,281
Assets
Accounts receivable, less allowance for doubtful accounts	1,020,404		1,020,404
Inventories, net	483,275		483,275
Liabilities:
Other accrued liabilities	300,040		300,040
Stockholders' equity:
Retained earnings (accumulated deficit)	(292,127)		(292,127)
ASU No. 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Net sales	56		(1,684)
Cost of sales	258		478
Operating income	(202)		(2,162)
Income tax expense	(25)		(538)
Net income	(177)		(1,624)
Assets
Accounts receivable, less allowance for doubtful accounts	3,312		3,312
Inventories, net	(3,807)		(3,807)
Liabilities:
Other accrued liabilities	(2,285)		(2,285)
Stockholders' equity:
Retained earnings (accumulated deficit)	$ 1,790		$ 1,790

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Acquisitions - Additional Information (Detail) - Cable Exchange [Member] $ in Millions	Aug. 01, 2017 USD ($)
Business Acquisition [Line Items]
Total consideration transferred, amount	$ 108.7
Cash paid for acquired assets and assumed liabilities	$ 105.2
Business acquisition date	Aug. 01, 2017
Cash payment due	$ 14.5

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Acquisitions - Preliminary Allocation of Purchase Price (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 2,866,319	$ 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

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Goodwill - Goodwill by Reportable Segment (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Goodwill [Line Items]
Goodwill, gross, Beginning balance	$ 3,097,600
Foreign exchange	(20,300)
Goodwill, gross, Ending balance	3,077,300
Accumulated impairment charges, Beginning balance	(211,000)
Goodwill, net	2,866,319
CCS [Member]
Goodwill [Line Items]
Goodwill, gross, Beginning balance	2,193,200
Foreign exchange	(18,900)
Goodwill, gross, Ending balance	2,174,300
Accumulated impairment charges, Beginning balance	(51,500)
Goodwill, net	2,122,800
CMS [Member]
Goodwill [Line Items]
Goodwill, gross, Beginning balance	904,400
Foreign exchange	(1,400)
Goodwill, gross, Ending balance	903,000
Accumulated impairment charges, Beginning balance	(159,500)
Goodwill, net	$ 743,500

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Supplemental Financial Statement Information - Schedule of Net Sales by Reportable Segment Disaggregated Based on Contract Type (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation Of Revenue [Line Items]
Consolidated net sales	$ 1,239,856	$ 1,174,090	$ 2,360,373	$ 2,311,375
CCS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	740,500	725,700	1,414,100	1,407,300
CMS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	499,400	$ 448,400	946,300	$ 904,100
Product Contracts [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	1,212,900		2,309,800
Product Contracts [Member] | CCS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	738,400		1,410,000
Product Contracts [Member] | CMS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	474,500		899,800
Project Contracts [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	13,600		24,100
Project Contracts [Member] | CCS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	100		100
Project Contracts [Member] | CMS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	13,500		24,000
Other Contracts [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	13,400		26,500
Other Contracts [Member] | CCS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	2,000		4,000
Other Contracts [Member] | CMS [Member]
Disaggregation Of Revenue [Line Items]
Consolidated net sales	$ 11,400		$ 22,500

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Supplemental Financial Statement Information - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accounts Notes And Loans Receivable Classified [Abstract]
Allowance for doubtful accounts, beginning of period	$ 15,107	$ 18,103	$ 13,976	$ 17,211
Charged to costs and expenses	5,058	241	6,524	1,053
Deductions	(1,042)	494	(1,377)	574
Allowance for doubtful accounts, end of period	$ 19,123	$ 18,838	$ 19,123	$ 18,838

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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	Jun. 30, 2018	Dec. 31, 2017
Accounts Receivable, Less Allowance for Doubtful Accounts [Member]
Schedule Of Contract Assets And Liabilities [Line Items]
Unbilled accounts receivable	$ 4,138
Other Accrued Liabilities [Member]
Schedule Of Contract Assets And Liabilities [Line Items]
Deferred revenue	$ 11,888	$ 12,611

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Supplemental Financial Statement Information - Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 153,106	$ 126,558
Work in process	104,706	98,526
Finished goods	221,656	219,857
Inventories, net	$ 479,468	$ 444,941

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Supplemental Financial Statement Information - Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Accrued Liabilities Current [Abstract]
Compensation and employee benefit liabilities	$ 102,292		$ 97,522
Accrued interest	18,610		23,485
Deferred revenue	11,888		12,611
Product warranty accrual	14,846	$ 16,150	16,928	$ 20,283	$ 20,180	$ 21,631
Restructuring reserve	14,211		24,961
Income taxes payable	23,708		16,949
Purchase price payable	10,717		2,098
Value-added taxes payable	18,683		11,838
Accrued professional fees	9,505		10,224
Other	73,295		70,364
Other Accrued Liabilities	$ 297,755		$ 286,980

XML

Supplemental Financial Statement Information - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 1,647,826
Ending balance	$ 1,703,269	$ 1,519,623	1,703,269	$ 1,519,623
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(5,985)	(213,797)	(52,770)	(254,148)
Other comprehensive income (loss)	(108,544)	86,749	(61,759)	126,833
Amounts reclassified from AOCI				267
Ending balance	(114,529)	(127,048)	(114,529)	(127,048)
Net Investment Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(5,579)	(355)	(4,981)
Other comprehensive income (loss)	3,051	(2,996)	2,453	(3,351)
Ending balance	(2,528)	(3,351)	(2,528)	(3,351)
Defined Benefit Plan Activity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(30,284)	(33,842)	(28,852)	(33,473)
Amounts reclassified from AOCI	(1,291)	(360)	(2,723)	(729)
Ending balance	(31,575)	(34,202)	(31,575)	(34,202)
Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance		3,817		2,508
Other comprehensive income (loss)		1,616		3,314
Amounts reclassified from AOCI		(3,748)		(4,137)
Ending balance		1,685		1,685
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(86,603)	(285,113)
Ending balance	$ (148,632)	$ (162,916)	$ (148,632)	$ (162,916)

XML

Supplemental Financial Statement Information - Cash Flow Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash paid during the period for:
Income taxes, net of refunds	$ 63,885	$ 77,318
Interest	$ 120,251	$ 105,376

XML

Financing - Summary of Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 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	(3,092)	(3,389)
Less: Debt issuance costs, net of amortization	(58,949)	(63,460)
Total long-term debt	4,374,209	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

XML

Financing - Summary of Debt (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 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

XML

Financing - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Total assets	$ 7,105,880,000		$ 7,105,880,000		$ 7,041,666,000
Total liabilities	5,402,611,000		5,402,611,000		$ 5,393,840,000
Net sales	$ 1,239,856,000	$ 1,174,090,000	$ 2,360,373,000	$ 2,311,375,000
Weighted average effective interest rate	5.58%		5.58%		5.45%
Non Guarantor Subsidiaries Concentration Risk [Member]
Debt Instrument [Line Items]
Total assets	$ 2,454,000,000		$ 2,454,000,000		$ 2,587,000,000
Total liabilities	547,000,000		547,000,000		$ 569,000,000
Net sales	$ 471,000,000	$ 471,000,000	$ 935,000,000	$ 911,000,000
Assets, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member]
Debt Instrument [Line Items]
Concentration risk percentage			35.00%		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	38.00%	40.00%	40.00%	39.00%
Asset Based Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Senior secured credit facilities current borrowed amount	$ 0		$ 0
Senior secured credit facilities current borrowing capacity	$ 506,400,000		$ 506,400,000

XML

Derivatives and Hedging Activities - Additional Information (Detail) - Foreign Currency Contracts [Member] $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional value	$ 421.0
Not Designated as Hedging Instrument [Member] | Maximum [Member]
Derivatives, Fair Value [Line Items]
Maturities ranging	14 months
Derivative Instruments Designated as Net Investment Hedge [Member]
Derivatives, Fair Value [Line Items]
Notional value	$ 55.0
Derivative Instruments Designated as Net Investment Hedge [Member] | Maximum [Member]
Derivatives, Fair Value [Line Items]
Maturities ranging	6 months

XML

Derivatives and Hedging Activities - Balance Sheet Location and Fair Value of the Company's Derivatives (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total derivatives	$ (3,438)	$ 8,476
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Foreign currency contracts	1,908	9,050
Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Foreign currency contracts	(5,037)	(574)
Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member]
Derivatives, Fair Value [Line Items]
Foreign currency contracts	(309)
Derivative Instruments Designated as Net Investment Hedge [Member]
Derivatives, Fair Value [Line Items]
Total derivatives	2,319	(403)
Derivative Instruments Designated as Net Investment Hedge [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Foreign currency contracts	$ 2,319
Derivative Instruments Designated as Net Investment Hedge [Member] | Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Foreign currency contracts		$ (403)

XML

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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Income (Expense), Net [Member] | Foreign Currency Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized on Foreign Currency Forward Contracts	$ (19,441)	$ 12,553	$ (7,561)	$ 14,409

XML

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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Foreign Currency Contracts [Member] | Derivative Instruments Designated as Net Investment Hedge [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Effective Portion of Gain (Loss) Recognized on Foreign Currency Forward Contracts	$ 3,051	$ (2,996)	$ 2,453	$ (3,351)

XML

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	Jun. 30, 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	$ 4,227	$ 9,050
Carrying Amount [Member] | Other Accrued Liabilities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Foreign currency contracts	5,346	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	4,227	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	5,346	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	705,975	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	1,531,950	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	653,250	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	650,000	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	$ 889,551	$ 892,343

XML

Segments and Geographic Information - Summary of Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 7,105,880	$ 7,041,666
Cash and cash equivalents	545,701	453,977	$ 484,491	$ 428,228
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	6,512,000	6,541,800
Operating Segments [Member] | CCS [Member]
Segment Reporting Information [Line Items]
Total assets	4,468,500	4,546,000
Operating Segments [Member] | CMS [Member]
Segment Reporting Information [Line Items]
Total assets	2,043,500	1,995,800
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	545,700	454,000
Deferred income tax assets	$ 48,200	$ 45,900

XML

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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 1,239,856	$ 1,174,090	$ 2,360,373	$ 2,311,375
Segment adjusted operating income	251,100	241,000	439,700	457,000
Amortization of intangible assets	(66,442)	(66,981)	(133,671)	(134,619)
Restructuring costs, net	(7,218)	(13,773)	(12,668)	(19,161)
Equity-based compensation	(11,800)	(11,200)	(22,396)	(20,598)
Integration and transaction costs	(1,000)	(12,600)	(2,500)	(26,200)
Consolidated operating income	164,688	136,389	268,414	256,361
Depreciation expense	19,900	20,200	39,500	40,200
Additions to property, plant and equipment	17,200	17,700	30,844	30,577
CCS [Member]
Segment Reporting Information [Line Items]
Net sales	740,500	725,700	1,414,100	1,407,300
Segment adjusted operating income	142,900	145,600	251,600	260,200
Restructuring costs, net	(4,687)	(9,596)	(7,058)	(14,352)
Depreciation expense	14,200	14,500	28,300	28,900
Additions to property, plant and equipment	12,600	11,700	21,400	20,500
CMS [Member]
Segment Reporting Information [Line Items]
Net sales	499,400	448,400	946,300	904,100
Segment adjusted operating income	108,200	95,400	188,100	196,800
Restructuring costs, net	(2,531)	(4,177)	(5,610)	(4,809)
Depreciation expense	5,700	5,700	11,200	11,300
Additions to property, plant and equipment	$ 4,600	$ 6,000	$ 9,400	$ 10,100

XML

Segments and Geographic Information - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Sales Revenue, Net [Member] | Customers Located Outside of the U.S [Member]
Segment Reporting Information [Line Items]
Concentration risk percentage	42.40%	45.20%	44.00%	44.10%

XML

Segments and Geographic Information - Summary of Sales by Geographic Region, Based on Destination of Product Shipments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 1,239,856	$ 1,174,090	$ 2,360,373	$ 2,311,375
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	714,600	643,900	1,322,100	1,292,200
Europe, Middle East and Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	253,400	235,800	503,100	467,600
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	183,200	203,800	371,800	385,700
Caribbean and Latin America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	61,600	56,100	117,700	114,900
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 27,100	$ 34,500	$ 45,700	$ 51,000

XML

Restructuring Costs - Summary of Company's Net Pretax Restructuring Charges (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring costs, net	$ 7,218	$ 13,773	$ 12,668	$ 19,161
CCS [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs, net	4,687	9,596	7,058	14,352
CMS [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs, net	$ 2,531	$ 4,177	$ 5,610	$ 4,809

XML

Restructuring Costs - Restructuring Reserves Included in Company's Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, current	$ 14,211	$ 24,961
Ending balance	19,610	31,997
Other Accrued Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, current	14,211	24,961
Other Noncurrent Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, non-current	$ 5,399	$ 7,036

XML

Restructuring Costs - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Liability for lease termination cost	$ 19,610,000	$ 31,997,000
BNS [Member]
Restructuring Cost and Reserve [Line Items]
Cash payments	10,200,000
Recognized restructuring charges	122,200,000
2019 to 2022 [Member] | BNS [Member]
Restructuring Cost and Reserve [Line Items]
Additional cash payments	5,000,000
Cost Alignment Restructuring Plan [Member] | Lease Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Liability for lease termination cost	4,400,000
Cost Alignment Restructuring Plan [Member] | Remainder of 2018 [Member]
Restructuring Cost and Reserve [Line Items]
Cash payments	900,000
Cost Alignment Restructuring Plan [Member] | 2019 to 2022 [Member]
Restructuring Cost and Reserve [Line Items]
Additional cash payments	$ 3,500,000

XML

Restructuring Costs - Activity within Liability Established for Restructuring Actions (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Beginning balance			$ 31,997
Additional charge recorded	$ 7,218	$ 13,773	12,668	$ 19,161
Ending balance	19,610		19,610
BNS Integration Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	17,001		26,668
Additional charge recorded	7,160		12,547
Cash paid	(8,757)		(23,440)
Consideration received	2,235		4,514
Foreign exchange and other non-cash items	(2,432)		(5,082)
Ending balance	15,207		15,207
Employee-Related Costs [Member] | BNS Integration Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	16,097		25,588
Additional charge recorded	7,092		11,030
Cash paid	(8,131)		(21,823)
Foreign exchange and other non-cash items	(503)		(240)
Ending balance	14,555		14,555
Lease Termination Costs [Member] | BNS Integration Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	904		1,080
Additional charge recorded	151		809
Cash paid	(378)		(1,222)
Foreign exchange and other non-cash items	(25)		(15)
Ending balance	652		652
Fixed Asset Related Costs [Member] | BNS Integration Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Additional charge recorded	(83)		708
Cash paid	(248)		(395)
Consideration received	2,235		4,514
Foreign exchange and other non-cash items	$ (1,904)		$ (4,827)

XML

Employee Benefit Plans - Summary of Pension Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost (income)	$ 1,300		$ 2,400
Pension Benefits [Member] | U.S.Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1,323	$ 1,490	2,646	$ 2,980
Recognized actuarial loss	120	164	240	328
Expected return on plan assets	(1,597)	(1,687)	(3,194)	(3,374)
Net periodic benefit cost (income)	(154)	(33)	(308)	(66)
Pension Benefits [Member] | Non-U.S.Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1,023	1,197	2,187	2,361
Interest cost	1,316	1,312	2,669	2,583
Recognized actuarial loss	315	378	635	745
Amortization of prior service cost (credit)	10		21
Expected return on plan assets	(1,954)	(1,877)	(3,958)	(3,696)
Net periodic benefit cost (income)	$ 710	$ 1,010	$ 1,554	$ 1,993

XML

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2019	Jun. 30, 2018
Pension Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Company's contribution to defined benefit plans		$ 4.6		$ 5.7
Additional contribution amount for remaining fiscal period		3.4		3.4
Contributions to annuity purchase for termination		$ 3.0		$ 3.0
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)			$ (27.0)
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)			$ (29.0)
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	$ 9.0
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	$ 10.0

XML

Stockholders' Equity - Additional Information (Detail) - USD ($)		3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 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)	$ 80,900,000	$ 80,900,000	$ 80,900,000
Recognition period of unrecognized compensation expense			1 year 6 months
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	0
Remaining amount authorized under repurchase program	$ 25,000,000	$ 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

XML

Stockholders' Equity - Summary of Location of Equity-Based Compensation Expense on Statement of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity-based compensation expense	$ 11,848	$ 11,186	$ 22,396	$ 20,598
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity-based compensation expense	9,023	8,517	17,063	15,676
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity-based compensation expense	1,501	1,418	2,833	2,615
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity-based compensation expense	$ 1,324	$ 1,251	$ 2,500	$ 2,307

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Stockholders' Equity - Summary of Stock Option Activity (Detail) - Non Qualified Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Options Beginning Balance | shares	4,901	4,830
Shares, Granted | shares	33	477
Shares, Exercised | shares	(102)	(432)
Shares, Forfeited | shares	(48)	(91)
Shares, Options Ending Balance | shares	4,784	4,784
Shares, Options vested Ending Balance | shares	3,957	3,957
Shares, Options unvested Ending Balance | shares	827	827
Weighted Average Option Exercise Price Per Share, Options Beginning Balance | $ / shares	$ 15.21	$ 13.01
Weighted Average Option Exercise Price Per Share, Granted | $ / shares	39.46	38.42
Weighted Average Option Exercise Price Per Share, Exercised | $ / shares	9.70	11.37
Weighted Average Option Exercise Price Per Share, Forfeited | $ / shares	34.73	33.60
Weighted Average Option Exercise Price Per Share, Options Ending Balance | $ / shares	15.30	15.30
Weighted Average Option Exercise Price Per Share, Options vested Ending Balance | $ / shares	10.80	10.80
Weighted Average Option Exercise Price Per Share, Options unvested Ending Balance | $ / shares	$ 36.80	$ 36.80
Weighted Average Remaining Contractual Term in Years, Options outstanding	4 years 3 months 18 days	4 years 3 months 18 days
Weighted Average Remaining Contractual Term in Years, Options vested		3 years 3 months 18 days
Weighted Average Remaining Contractual Term in Years, Options unvested		9 years 1 month 6 days
Aggregate Intrinsic Value, Options outstanding as of June 30, 2018 | $	$ 75,053	$ 75,053
Aggregate Intrinsic Value, Options vested as of June 30, 2018 | $	74,702	74,702
Aggregate Intrinsic Value, Options unvested as of June 30, 2018 | $	$ 351	$ 351

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Stockholders' Equity - Summary of Exercise Price (Detail) shares in Thousands	6 Months Ended
	Jun. 30, 2018 $ / shares shares
$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	2,502
Weighted Average Remaining Contractual Life	2 years 4 months 24 days
Weighted Average Exercise Price Per Share, Options Outstanding	$ 5.42
Options Exercisable Shares | shares	2,502
Weighted Average Exercise Price Per Share, Options Exercisable	$ 5.42
$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	653
Weighted Average Remaining Contractual Life	1 year 10 months 24 days
Weighted Average Exercise Price Per Share, Options Outstanding	$ 8.58
Options Exercisable Shares | shares	653
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	23.00
Range of Exercise Prices Maximum	$ 42.32
Options Outstanding Shares | shares	1,629
Weighted Average Remaining Contractual Life	8 years 1 month 6 days
Weighted Average Exercise Price Per Share, Options Outstanding	$ 33.16
Options Exercisable Shares | shares	802
Weighted Average Exercise Price Per Share, Options Exercisable	$ 29.40
$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	4,784
Weighted Average Remaining Contractual Life	4 years 3 months 18 days
Weighted Average Exercise Price Per Share, Options Outstanding	$ 15.30
Options Exercisable Shares | shares	3,957
Weighted Average Exercise Price Per Share, Options Exercisable	$ 10.80

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Stockholders' Equity - Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) - Stock Options [Member] - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option term (in years)	6 years	6 years	6 years	6 years
Risk-free interest rate	2.60%	2.00%	2.70%	2.00%
Expected volatility	35.00%	40.00%	35.00%	40.00%
Weighted average exercise price	$ 39.46	$ 42.32	$ 38.42	$ 38.00
Weighted average fair value at grant date	$ 15.19	$ 17.48	$ 14.86	$ 15.72

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Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested share units, Beginning balance	2,217	2,279
Shares, Granted	54	1,120
Shares, Vested and shares issued	(36)	(1,073)
Shares, Forfeited	(80)	(171)
Non-vested share units, Ending balance	2,155	2,155
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance	$ 35.51	$ 31.83
Weighted Average Grant Date Fair Value Per Share, Granted	30.77	37.98
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued	35.02	30.77
Weighted Average Grant Date Fair Value Per Share, Forfeited	34.64	33.35
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance	$ 35.43	$ 35.43

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Stockholders' Equity - Summary of PSU Activity (Detail) - Performance Shares [Member] - $ / shares shares in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested share units, Beginning balance	300	344
Shares, Granted	13	184
Shares, Vested and shares issued	(1)	(203)
Shares, Forfeited	(18)	(31)
Non-vested share units, Ending balance	294	294
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Beginning balance	$ 33.45	$ 26.75
Weighted Average Grant Date Fair Value Per Share, Granted	39.46	38.42
Weighted Average Grant Date Fair Value Per Share, Vested and shares issued	27.64	26.80
Weighted Average Grant Date Fair Value Per Share, Forfeited	28.01	26.27
Weighted Average Grant Date Fair Value Per Share, Non-vested share units, Ending balance	$ 34.07	$ 34.07

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Subsequent Events - Additional Information (Detail) - Senior Secured Term Loan Due 2022 [Member] - Scenario Forecast [Member] $ in Thousands	1 Months Ended
	Jul. 31, 2018 USD ($)
Subsequent Event [Line Items]
Repayments of senior debt	$ 400
Asset Based Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Repayments of senior debt	150
Cash on Hand [Member]
Subsequent Event [Line Items]
Repayments of senior debt	$ 250