Rendering

Component: (Network and Table)
Network
1043 - Disclosure - Segment Information (Tables)
(http://www.arrisgroup.com/taxonomy/role/NotesToFinancialStatementsSegmentReportingDisclosureTextBlockTables)
TableStatement [Table]
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0001645494 (http://www.sec.gov/CIK)
Legal Entity [Axis]Entity [Domain]
Statement [Line Items]Period [Axis]
2016-01-01 - 2016-12-31
Reportable Segments

The tables below present information about the Company’s reportable segments for the years ended December 31, 2016, 2015 and 2014 (in thousands):

 

     2016      2015      2014  

Net sales to external customers:

      

CPE

    $ 4,747,445      $ 3,136,585      $ 3,690,454  

N&C

      2,111,708        1,661,594        1,637,544  

Other

      (30,035 )       153        (5,077 ) 
  

 

 

     

 

 

     

 

 

  

Total

      6,829,118        4,798,332        5,322,921  
  

 

 

     

 

 

     

 

 

  

Direct contribution:

      

CPE

      684,744        548,840        791,244  

N&C

      681,608        487,166        430,943  
  

 

 

     

 

 

     

 

 

  

Segment total

      1,366,352        1,036,006        1,222,187  
  

 

 

     

 

 

     

 

 

  

Corporate and unallocated costs

      (697,834 )       (568,336 )       (606,834 ) 

Amortization of intangible assets

      (397,464 )       (227,440 )       (236,521 ) 

Integration, acquisition, restructuring and other

      (160,337 )       (29,277 )       (37,498 ) 
  

 

 

     

 

 

     

 

 

  

Operating income

      110,717        210,953        341,334  
  

 

 

     

 

 

     

 

 

  

Interest expense

      79,817        70,936        62,901  

Loss on investments

      21,194        6,220        10,961  

(Gain) loss on foreign currency

      (13,982 )       20,761        2,637  

Interest income

      (4,395 )       (2,379 )       (2,590 ) 

Other expense ( income), net

      3,991        8,362        28,195  
  

 

 

     

 

 

     

 

 

  

Income before income taxes

    $ 24,092      $ 107,053      $ 239,230  
  

 

 

     

 

 

     

 

 

  
  
Composition Of Corporate and Unallocated Costs

For the years ended December 31, 2016, 2015 and 2014, the compositions of our corporate and unallocated costs that are reflected in the consolidated statement of operations were as follows (in thousands):

 

     2016      2015      2014  

Corporate and unallocated costs:

         

Cost of sales

    $ 150,588      $ 56,311      $ 69,973  

Selling, general and administrative expenses

      375,747        349,993        349,693  

Research and development expenses

      171,499        162,032        187,168  
  

 

 

     

 

 

     

 

 

  

Total

    $ 697,834      $ 568,336      $ 606,834  
  

 

 

     

 

 

     

 

 

  
  
Summary of Company's Net Intangible Assets and Goodwill by Reportable Segment

The following table summarizes the Company’s net intangible assets and goodwill by reportable segment as of December 31, 2016 and 2015 (in thousands):

 

     CPE      N&C      Total  

December 31, 2016

         

Goodwill

    $ 1,391,171      $ 624,998      $ 2,016,169  

Intangible assets, net

      1,064,692        612,486        1,677,178  

December 31, 2015

         

Goodwill

    $ 682,582      $ 331,381      $ 1,013,963  

Intangible assets, net

      525,920        284,528        810,448  
  
Summary of Company's Revenues by Products and Services

The following table summarizes the Company’s revenues by products and services as of December 31, 2016, 2015 and 2014 (in thousands):

 

     2016      2015      2014  

CPE:

         

Broadband CPE

    $ 1,683,491      $ 1,452,164      $ 1,494,925  

Video CPE

      3,063,954        1,684,421        2,195,529  
  

 

 

     

 

 

     

 

 

  

Sub-total

      4,747,445        3,136,585        3,690,454  
  

 

 

     

 

 

     

 

 

  

Network & Cloud:

         

Infrastructure equipment

      1,800,480        1,407,735        1,435,676  

Global services

      230,588        181,892        141,625  

Cloud solutions

      80,640        71,967        60,243  
  

 

 

     

 

 

     

 

 

  

Sub-total

      2,111,708        1,661,594        1,637,544  
  

 

 

     

 

 

     

 

 

  

Other:

         

Other

      (30,035 )       153        (5,077 ) 
  

 

 

     

 

 

     

 

 

  

Total net sales

    $ 6,829,118      $ 4,798,332      $ 5,322,921  
  

 

 

     

 

 

     

 

 

  
  
Summary of Sales to Customers

A summary of sales to these customers for 2016, 2015 and 2014 is set forth below (in thousands, except percentages):

 

     Years ended December 31,  
     2016     2015     2014  

AT&T and affiliates

    $ 901,001     $ 347,063     $ 612,413  

    % of sales

      13.2 %      7.2 %      11.5 % 

Charter and affiliates

    $ 1,064,408 (1)    $ 960,497     $ 1,031,553  

    % of sales

      15.6 %      20.0 %      19.4 % 

Comcast and affiliates

    $ 1,637,519 (1)    $ 1,007,376     $ 1,012,367  

    % of sales

      24.0 %      21.0 %      19.0 % 

 

(1) Revenues were reduced by $30.2 million in total as a result of Warrants held by Charter and Comcast that are intended to incent additional purchases from them. (see Note 17 Warrants for additional information).

 

  
Summary of ARRIS' International Sales by Geographic Region

International sales for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):

 

     For the Years Ended December 31,  
     2016      2015      2014  

Domestic — U.S

    $ 4,909,698      $ 3,418,583      $ 3,957,203  

International

         

Americas, excluding U.S.

      982,769        880,581        900,822  

Asia Pacific

      291,504        142,893        147,921  

EMEA

      645,147        356,275        316,975  
  

 

 

     

 

 

     

 

 

  

Total international

    $ 1,919,420      $ 1,379,749      $ 1,365,718  
  

 

 

     

 

 

     

 

 

  

Total sales

    $ 6,829,118      $ 4,798,332      $ 5,322,921  
  

 

 

     

 

 

     

 

 

  
  
Summary of ARRIS' International Property, Plant and Equipment by Geographic Region

The following table summarizes ARRIS’s international property, plant and equipment assets by geographic region as of December 31, 2016 and 2015 (in thousands):

 

     For the Years Ended
December 31,		  
     2016      2015  

Domestic — U.S

    $ 220,397      $ 223,736  

International

      

Americas, excluding U.S.

      12,838        6,659  

Asia Pacific

      81,655        74,651  

EMEA

      38,487        7,265  
  

 

 

     

 

 

  

Total international

    $ 132,980      $ 88,575  
  

 

 

     

 

 

  

Total property, plant and equipment assets

    $ 353,377      $ 312,311