Subsequent Events

9 Months Ended

Oct. 02, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 10, 2016, we completed an offering for €200.0 million ($222.2 million) aggregate principal amount of 4.125% senior subordinated notes due 2026 (the 2026 Notes). The 2026 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on April 15 and October 15 of each year, beginning on April 15, 2017. The proceeds from the debt issuance were used to pay off the variable rate term loan due 2020, for which we will recognize a $2.2 million loss on debt extinguishment during the fourth quarter of 2016.

On July 5, 2011, our wholly-owned subsidiary, PPC Broadband, Inc. (PPC), filed an action for patent infringement against Corning Optical Communications RF LLC (Corning). The Complaint alleged that Corning infringed two of PPC’s patents.  On July 23, 2015, a jury found that Corning willfully infringed both patents and awarded damages in the amount of $23.9 million.  On November 3, 2016, following a series of post-trial motions, the trial judge issued a ruling granting us enhanced damages of $47.7 million plus a yet-to-be-determined amount of pre-judgment interest. We have not recorded any amounts in our consolidated financial statements related to this matter, as Corning may appeal the ruling.