Exhibit 99.1

ARRIS Announces Preliminary and Unaudited Fourth Quarter and Full Year 2018 Results

SUWANEE, Ga., February 21, 2019 – ARRIS (NASDAQ: ARRS) today announced preliminary and unaudited financial results for the fourth quarter and full year 2018.

“We had a strong finish to 2018 generating $0.76 of non-GAAP earnings per share and $229 million of cash from operating activities in the fourth quarter,” said Bruce McClelland ARRIS CEO.   “Led by strength in our Network and Cloud business, sales of our E6000 CCAP product were particularly strong with several customers increasing year end capital spend. CPE sales were higher than any other quarter over the last year, exceeding $1 billion. Enterprise sales were disappointing with sales of Ruckus products below expectations in North America, due to higher channel inventory. Looking forward, we anticipate 2019 to be a stronger year than 2018, with the first quarter expected to be the lowest quarter of the year. We are on track to transition the majority of Broadband CPE production out of China by early second quarter to address US import tariffs, resulting in reduced sales in the first quarter. Additionally, we expect lower sales of Network and Cloud in Q1 due to strong end of year shipments, and flat Enterprise sales as channel inventory normalizes.”

Revenues were $1.787 billion in the quarter and $6.743 billon for full year 2018.

GAAP net income in the quarter was $0.25 per diluted share and $0.62 per diluted share year to date through December 31, 2018.

Adjusted net income (a non-GAAP measure) in the quarter was $0.76 per diluted share and $2.89 per diluted share for full year 2018.

A reconciliation of adjusted net income per diluted share to GAAP net income per diluted share is attached to this release and can be found on the Company’s website (www.ARRIS.com).

Cash & Cash Equivalents - The Company generated $229 million of cash from operating activities during the fourth quarter 2018 and ended the year with $735 million of cash resources.

Further details are attached to this release and full results will be filed in our 10K.

Forward-Looking Statements

Statements made in this press release, including those related to preliminary revenues and net income for the fourth quarter and full year 2018, are forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among other things:

· projected results for the fourth quarter 2018 and beyond are based on preliminary estimates, assumptions and projections that management believes to be reasonable at this time, but are beyond management’s control;

· satisfaction of conditions for the completion of the proposed acquisition of ARRIS by CommScope Holding Company, Inc. (the “Acquisition”), including receipt of remaining required regulatory approvals, may be delayed or may not be satisfied at all;

· delays in moving certain manufacturing from China or difficulties in commencing production in new locations as planned could materially impact revenues;

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

· any increase in tariffs enacted on imports from China or an expansion of the products covered, could have a material adverse impact on our financial results;

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

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

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

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

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

These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company’s reports filed with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended September 30, 2018. In providing forward-looking statements, the Company expressly disclaims any obligation to update these statements publicly or otherwise, whether as a result of new information, future events or otherwise, except as required by law.

About ARRIS

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

For the latest ARRIS news:

· Check out our blog: ARRIS EVERYWHERE

· Follow us on Twitter: @ARRIS

Contact:

Bob Puccini

Investor Relations

+1.720.895.7787

ARRIS, the ARRIS logo and E6000 are trademarks of ARRIS International plc and/or its affiliates. All other marks are the property of their respective owners. © 2018 ARRIS Enterprises LLC. All rights reserved.

ARRIS INTERNATIONAL PLC
PRELIMINARY CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2018			2018			2018			2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	729,933		$	480,757		$	501,411		$	506,240		$	487,573
Short-term investments, at fair value		5,538			39,640			46,698			36,804			23,874
Total cash, cash equivalents and short term investments		735,471			520,397			548,109			543,044			511,447
Accounts receivable, net		1,225,975			1,117,641			1,183,360			1,034,608			1,218,089
Other receivables		222,368			235,122			192,067			169,681			157,845
Inventories, net		740,205			717,272			803,217			849,069			825,211
Prepaid income taxes		17,391			17,717			10,406			26,409			28,351
Prepaids		26,978			34,125			40,290			36,308			26,644
Other current assets		144,251			201,111			196,014			172,993			145,953
Total current assets		3,112,639			2,843,385			2,973,463			2,832,112			2,913,540
Property, plant and equipment, net		287,671			289,820			299,991			309,457			372,467
Goodwill		2,240,642			2,261,002			2,259,177			2,336,820			2,278,512
Intangible assets, net		1,403,659			1,488,580			1,580,393			1,583,299			1,771,362
Investments		45,295			71,747			69,902			69,858			71,082
Deferred income taxes		175,405			155,193			146,443			131,417			115,436
Other assets		62,558			76,878			72,155			103,525			101,858
	$	7,327,869		$	7,186,605		$	7,401,524		$	7,366,488		$	7,624,257
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,288,827		$	1,100,901		$	1,125,619		$	1,010,812		$	1,206,656
Accrued compensation, benefits and related taxes		141,565			146,964			140,387			113,029			155,966
Accrued warranty		36,988			40,772			38,651			42,434			44,507
Deferred revenue		111,254			115,989			123,590			143,740			115,224
Current portion of LT debt & financing lease obligations		83,862			83,785			83,709			83,633			83,559
Income taxes payable		2,964			4,182			2,094			4,937			6,244
Other accrued liabilities		302,307			356,002			361,315			316,206			321,113
Total current liabilities		1,967,767			1,848,595			1,875,365			1,714,791			1,933,269
Long-term debt & financing lease obligations, net of current portion		2,032,382			2,053,373			2,074,352			2,095,320			2,116,244
Accrued pension		25,303			32,371			31,889			43,443			42,637
Noncurrent deferred revenue		58,744			58,553			58,233			56,041			54,090
Noncurrent income taxes		119,047			112,259			120,988			159,148			144,665
Deferred income taxes		46,784			60,410			62,886			68,825			68,888
Other noncurrent liabilities		71,994			67,534			68,507			71,546			80,430
Total liabilities		4,322,021			4,233,095			4,292,220			4,209,114			4,440,223
Stockholders' equity:
Ordinary shares		2,623			2,621			2,722			2,769			2,768
Capital in excess of par value		3,468,728			3,439,476			3,424,905			3,392,415			3,387,128
Accumulated other comprehensive (loss) income		(13,345	)		(8,655	)		(4,648	)		12,545			4,552
Accumulated deficit		(466,165	)		(494,706	)		(329,731	)		(266,264	)		(225,881	)
Total ARRIS International plc stockholders' equity		2,991,841			2,938,736			3,093,248			3,141,465			3,168,567
Stockholders' equity attributable to noncontrolling interest		14,007			14,774			16,056			15,909			15,467
Total stockholders' equity		3,005,848			2,953,510			3,109,304			3,157,374			3,184,034
	$	7,327,869		$	7,186,605		$	7,401,524		$	7,366,488		$	7,624,257

ARRIS INTERNATIONAL PLC
PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	For the Three Months						For the Twelve Months
	Ended December 30,						Ended December 31,
	2018			2017			2018			2017
Net sales	$	1,787,143		$	1,738,594		$	6,742,640		$	6,614,392
Cost of sales		1,307,910			1,244,124			4,823,781			4,948,153
Gross margin		479,233			494,470			1,918,859			1,666,239
Operating expenses:
Selling, general, and administrative expenses		169,789			142,403			667,053			475,369
Research and development expenses		150,932			141,442			644,038			539,094
Amortization of intangible assets		90,062			100,588			383,561			375,407
Impairment of goodwill and intangible assets		-			55,000			3,400			55,000
Gain on disposal of fixed assets		(13,346	)		-			(13,346	)		-
Integration, acquisition, restructuring and other costs		13,722			67,734			55,268			98,357
		411,160			507,168			1,739,974			1,543,227
Operating income		68,073			(12,699	)		178,885			123,012
Other expense (income):
Interest expense		24,945			23,850			95,086			87,088
Loss on investments		2,025			2,088			308			11,066
(Gain) loss on foreign currency		(2,201	)		4,188			3,834			9,757
Interest income		(3,253	)		(1,978	)		(8,341	)		(7,975	)
Other expense (income), net		5,082			(402	)		5,056			1,873
Income income (loss) before income taxes		41,474			(40,443	)		82,942			21,203
Income tax benefit		(2,238	)		(32,309	)		(24,344	)		(44,921	)
Consolidated net income (loss)		43,712			(8,136	)		107,286			66,124
Net loss attributable to noncontrolling interests		(795	)		(20,604	)		(6,454	)		(25,903	)
Net income attributable to ARRIS International plc	$	44,507		$	12,469		$	113,740		$	92,027
Net income per ordinary share (1):
Basic	$	0.26		$	0.07		$	0.63		$	0.49
Diluted	$	0.25		$	0.07		$	0.62		$	0.49
Weighted average ordinary shares:
Basic		173,726			186,548			180,147			187,133
Diluted		176,248			188,829			182,041			189,616

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

ARRIS INTERNATIONAL PLC
PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	2018			2017			2018			2017
Operating Activities:
Consolidated net income (loss)	$	43,712		$	(8,134	)	$	107,286		$	66,124
Depreciation		18,147			22,855			83,686			88,195
Amortization of acquired intangible assets		91,938			102,455			391,074			382,416
Amortization of deferred finance fees and debt discount		1,191			2,339			4,811			7,960
Impairment of goodwill and intangible assets		-			55,000			3,400			55,000
Deferred income taxes		(14,228	)		(43,041	)		(72,669	)		(74,465	)
Foreign currency remeasurement of deferred taxes		(1,007	)		851			(477	)		9,360
Stock compensation expense		22,146			18,706			85,233			81,557
Provision for non-cash warrants		-			(8,145	)		-			-
Recovery for doubtful accounts		(25	)		(7	)		(462	)		(566	)
(Gain) loss on sale and disposal of plant, property and equipment and other		(12,535	)		1,187			(10,774	)		7,063
Loss on investments and others		2,025			2,088			517			11,066
Changes in operating assets & liabilities, net of effects of acquisitions and disposals:
Accounts receivable		(107,774	)		(129,282	)		(22,138	)		175,930
Other receivables		12,754			(12,187	)		(64,523	)		(84,652	)
Inventories		(22,755	)		(1,849	)		81,815			(224,582	)
Accounts payable and accrued liabilities		174,745			(82,449	)		24,948			49,988
Prepaids and other, net		20,428			1,770			37,275			(16,583	)
Net cash provided by (used in) operating activities		228,762			(77,843	)		649,002			533,811
Investing Activities:
Purchases of investments		-			(243	)		(64,454	)		(68,493	)
Sales of investments		33,835			10,000			79,473			165,301
Proceeds from dividend declared on equity investment		9,800			-			9,966			826
Purchases of property, plant & equipment, net		(17,995	)		(15,683	)		(63,616	)		(78,072	)
Proceeds from sale of property, plant & equipment, net of deposits		24,420			-			74,425			-
Purchases of intangible assets		-			-			(423	)		(6,422	)
Acquisitions, net of cash acquired		(1,152	)		(760,802	)		(1,152	)		(760,802	)
Other, net		9,352			-			9,352			-
Net cash provided by (used in) investing activities		58,260			(766,728	)		43,571			(747,662	)
Financing Activities:
Proceeds from issuance of debt		-			145,533			-			175,847
Payment of financing lease obligation		(230	)		(187	)		(870	)		(777	)
Payment of debt obligations		(21,875	)		(145,033	)		(87,500	)		(244,009	)
Payment for deferred financing costs and debt discount		-			(4,499	)		-			(5,961	)
Repurchase of shares		(21,457	)		(50,000	)		(353,079	)		(196,965	)
Repurchase of shares to satisfy employee minimum tax withholdings		(3,864	)		(214	)		(23,781	)		(26,573	)
Proceeds from issuance of shares, net		10,980			8,846			20,186			17,469
Contribution from noncontrolling interest		-			-			2,257			3,500
Net cash used in financing activities		(36,446	)		(45,554	)		(442,787	)		(277,469	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(3,503	)		(2,197	)		(7,520	)		(1,256	)
Net (decrease) increase in cash, cash equivalents and restricted cash		247,073			(892,322	)		242,266			(492,576	)
Cash, cash equivalents and restricted cash at beginning of period		484,309			1,381,438			489,116			981,692
Cash, cash equivalents and restricted cash at end of period	$	731,382		$	489,116		$	731,382		$	489,116
Reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets
Cash and cash equivalent		729,933			487,573
Restricted cash included in other current assets		776			23
Restricted cash included in other assets		673			1,520
Total		731,382			489,116

ARRIS INTERNATIONAL PLC
PRELIMINARY ADJUSTED SALES & NET INCOME RECONCILIATION
(in thousands, except per share data) (unaudited)

	Q4 2017						Q3 2018						Q4 2018						DEC YTD 2017						DEC YTD 2018
	Amount			Per Diluted Share			Amount			Per Diluted Share			Amount			Per Diluted Share			Amount			Per Diluted Share			Amount			Per Diluted Share
Sales	$	1,738,593					$	1,651,248					$	1,787,143					$	6,614,392					$	6,742,640
Highlighted items:
Reduction in revenue related to warrants		(8,145	)					-						-						-						–
Acquisition accounting impacts of deferred revenue		1,120						2,400						1,700						1,120						13,101
Adjusted sales	$	1,730,448					$	1,653,648					$	1,788,843					$	6,614,392					$	6,755,741
Net income attributable to ARRIS International plc	$	12,469		$	0.07		$	47,079		$	0.26		$	44,507		$	0.25		$	92,027		$	0.49		$	113,740		$	0.62
Highlighted Items:
Impacting gross margin:
Stock compensation expense		3,303			0.02			3,660			0.02			3,577			0.02			13,947			0.07			14,299			0.08
Reduction in revenue related to warrants		(8,145	)		(0.04	)		–			–			–			–			–			–			–			–
Acquisition accounting impacts of deferred revenue		1,120			0.01			2,400			0.01			1,700			0.01			1,120			0.01			13,101			0.07
Acquisition accounting impacts of fair valuing inventory		7,560			0.04			–			–			–			–			8,468			0.04			16,971			0.09
Impacting operating expenses:
Integration, acquisition, restructuring and other costs		67,736			0.36			5,046			0.03			13,722			0.08			98,357			0.52			55,267			0.30
Amortization of intangible assets		100,588			0.53			88,305			0.49			90,062			0.51			375,407			1.98			383,560			2.11
Impairment of goodwill and intangible assets		55,000			0.29			–			–			–			–			55,000			0.29			3,400			0.02
Stock compensation expense		15,403			0.08			16,668			0.09			18,569			0.11			66,711			0.35			70,934			0.39
Gain on sale of fixed assets		–			–			–			–			(13,346	)		(0.08	)		–			–			(13,346	)		(0.07	)
Noncontrolling interest share of non-GAAP adj		(20,026	)		(0.11	)		(885	)		(0.00	)		(849	)		–			(22,352	)		(0.12	)		(4,922	)		(0.03	)
Impacting other (income)/expense:
Impairment on investments		–			–			–			–			–			–			929			–			–			–
Debt amendment fees		3,069			0.02			–			–			–			–			5,851			0.03			–			–
Pension settlement and curtailment		–			–			–			–			5,665			0.03			–			–			5,665			0.03
Remeasurement of certain deferred tax liabilities		852			–			519			–			(1,017	)		(0.01	)		9,360			0.05			(477	)		–
Impacting income tax expense:
Net tax items		(73,267	)		(0.39	)		(40,666	)		(0.23	)		(29,513	)		(0.17	)		(190,151	)		(1.00	)		(132,107	)		(0.73	)
Total highlighted items		153,193			0.81			75,047			0.42			88,570			0.50			422,647			2.23			412,345			2.27
Adjusted net income	$	165,662		$	0.88		$	122,126		$	0.68		$	133,077		$	0.76		$	514,674		$	2.71		$	526,085		$	2.89
Weighted average ordinary shares - basic					186,548						178,106						173,726						187,133						180,147
Weighted average ordinary shares - diluted					188,829						179,337						176,248						189,616						182,041

ARRIS INTERNATIONAL PLC
PRELIMINARY SUPPLEMENTAL GAAP TO ADJUSTED SALES & GROSS MARGIN RECONCILIATION
(in thousands)
(unaudited)

	Q4 2017			Q3 2018			Q4 2018			Dec YTD 2017			Dec YTD 2018
Sales - GAAP	$	1,738,593		$	1,651,248		$	1,787,143		$	6,614,392		$	6,742,640
Adjustment to revenue related to warrants		(8,145	)		-			-			-			-
Acquisition accounting impacts of deferred revenue		1,120			2,400			1,700			1,120			13,101
Adjusted Sales - Non-GAAP	$	1,731,568		$	1,653,648		$	1,788,843		$	6,615,512		$	6,755,741
GAAP Gross Margin	$	494,469		$	465,189		$	479,233		$	1,666,239		$	1,918,859
Acquisition accounting impacts of fair valuing inventory		7,560			-			-			8,468			16,971
Acquisition accounting impacts of deferred revenue		1,120			2,400			1,700			1,120			13,101
Stock compensation expense		3,303			3,660			3,577			13,947			14,299
Adjustment to revenue related to warrants		(8,145	)		-			-			-			-
Adjusted Gross Margin - Non-GAAP	$	498,307		$	471,249		$	484,510		$	1,689,774		$	1,963,230
GAAP Gross Margin - %		28.4	%		28.2	%		26.8	%		25.2	%		28.5	%
Adjusted Gross Margin - Non-GAAP -  %		28.8	%		28.5	%		27.1	%		25.5	%		29.1	%

ARRIS INTERNATIONAL PLC
PRELIMINARY SUPPLEMENTAL OPERATING INCOME TO ADJUSTED DIRECT CONTRIBUTION RECONCILIATION
(in thousands)
(unaudited)

	Q4 2018															Year 2018
	Network & Cloud			CPE			Enterprise			Corp/ Other			Total			Network & Cloud			CPE			Enterprise			Corp/ Other			Total
Sales	$	536,782		$	1,099,068		$	153,039		$	(1,746	)	$	1,787,143		$	2,156,577		$	3,923,894		$	675,352		$	(13,183	)	$	6,742,640
Add:
Acquisition accounting impacts of deferred revenue		-			-			1,700			-			1,700			-			-			13,101			-			13,101
Adjusted sales	$	536,782		$	1,099,068		$	154,739		$	(1,746	)	$	1,788,843		$	2,156,577		$	3,923,894		$	688,453		$	(13,183	)	$	6,755,741
Operating income (loss)	$	191,318		$	38,775		$	(14,980	)	$	(147,040	)	$	68,073		$	732,529		$	50,766		$	(16,111	)	$	(588,299	)	$	178,885
Add:
Amortization of intangible assets		24,707			46,840			17,697			818			90,062			99,316			207,804			73,176			3,265			383,561
Impairment of goodwill and intangible assets		-			-			-			-			-			3,400			-			-			-			3,400
Gain on sale of fixed assets		-			(13,346	)		-			-			(13,346	)		-			(13,346	)		-			-			(13,346	)
Integration, acquisition, restructuring & other costs		3,955			605			2,254			6,909			13,723			13,693			25,286			7,602			8,687			55,268
Direct contribution (1)		219,980			72,874			4,971			(139,313	)		158,512			848,938			270,510			64,667			(576,347	)		607,768
Adjustments:
Allocated costs (2)		(27,868	)		(19,099	)		(6,275	)		53,242			-			(114,036	)		(77,993	)		(22,917	)		214,946			-
Stock compensation expense		8,150			5,043			4,057			4,896			22,146			32,485			21,566			14,272			16,910			85,233
Depreciation expense		6,711			6,919			1,017			3,500			18,147			27,181			28,701			10,889			16,915			83,686
Adjusted direct contribution	$	206,973		$	65,737		$	3,770		$	(77,675	)	$	198,805		$	794,568		$	242,784		$	66,911		$	(327,576	)	$	776,687

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

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

ARRIS INTERNATIONAL PLC
PRELIMINARY ADJUSTED EBITDA RECONCILIATION
(in millions)
(unaudited)

	Q1 2018			Q2 2018			Q3 2018			Q4 2018			Year 2018
Net income (loss) as reported	$	(17	)	$	35		$	46		$	44		$	107
Income tax expense (benefit)		3			(10	)		(16	)		(2	)		(24	)
Interest income		(2	)		(2	)		(2	)		(3	)		(8	)
Interest expense		23			24			24			25			95
Depreciation expense		23			21			22			18			84
Amortization of intangible assets		115			90			88			90			384
EBITDA		145			158			162			171			637
Adjustments
Stock-based compensation expense		19			24			20			22			85
Integration, acquisition, restructuring and other costs		14			23			5			14			55
Pension settlement and curtailment		-			-			-			6			6
Gain on disposal of fixed assets		-			-			-			(13	)		(13	)
Impairment on goodwill and intangible assets		3			-			-			-			3
Acquisition accounting impacts of deferred revenue		6			3			2			2			13
Acquisition accounting impacts of fair valuing inventory		17			-			-			-			17
Remeasurement of deferred taxes		4			(4	)		1			(1	)		(0	)
Adjusted EBITDA - Non-GAAP	$	208		$	204		$	191		$	200		$	803

Notes to GAAP to Adjusted Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

Gain on Disposal of Property, Plant & Equipment:    We have excluded the effect of a gain on the sale of our manufacturing facility and certain manufacturing fixed assets in Taiwan in calculating our non-GAAP financial measures. We believe it is useful to understand the effect of this item in our other expense (income).

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

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

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

Pension Settlement Charge and Curtailment:    We have excluded the effect of the deferred actuarial gains and losses remaining in accumulated other comprehensive income related to the termination of our pension benefit plans in calculating our non-GAAP financial measures. We believe it is useful to understand the effect of this non-cash item in our other expense (income).

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

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