| Summary of Components of Discontinuing Operations Included in Financial Statements |
The following table presents the summarized components of income (loss) from discontinued operations, net of income taxes, for the three months ended June 30, 2026 and 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RUCKUS |
|
CCS |
|
OWN |
|
Home |
|
Total |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net sales |
$ |
177.7 |
|
$ |
188.6 |
|
$ |
0.1 |
|
$ |
875.4 |
|
$ |
(0.3 |
) |
$ |
2.4 |
|
$ |
0.3 |
|
$ |
5.7 |
|
$ |
177.8 |
|
$ |
1,072.1 |
|
Cost of sales |
|
64.1 |
|
|
57.3 |
|
|
— |
|
|
563.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
7.4 |
|
|
64.1 |
|
|
628.0 |
|
Gross profit (loss) |
|
113.6 |
|
|
131.3 |
|
|
0.1 |
|
|
312.1 |
|
|
(0.3 |
) |
|
2.4 |
|
|
0.3 |
|
|
(1.7 |
) |
|
113.7 |
|
|
444.1 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative |
|
57.9 |
|
|
48.6 |
|
|
4.2 |
|
|
87.2 |
|
|
0.1 |
|
|
4.4 |
|
|
0.2 |
|
|
0.2 |
|
|
62.4 |
|
|
140.4 |
|
Research and development |
|
28.5 |
|
|
29.1 |
|
|
— |
|
|
18.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
28.5 |
|
|
47.8 |
|
Amortization of purchased
intangible assets |
|
1.2 |
|
|
12.5 |
|
|
— |
|
|
17.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1.2 |
|
|
30.2 |
|
Restructuring costs (credits), net |
|
(0.1 |
) |
|
1.0 |
|
|
— |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
|
1.4 |
|
Total operating expenses |
|
87.5 |
|
|
91.2 |
|
|
4.2 |
|
|
124.0 |
|
|
0.1 |
|
|
4.4 |
|
|
0.2 |
|
|
0.2 |
|
|
92.0 |
|
|
219.8 |
|
Operating income (loss) |
|
26.1 |
|
|
40.1 |
|
|
(4.1 |
) |
|
188.1 |
|
|
(0.4 |
) |
|
(2.0 |
) |
|
0.1 |
|
|
(1.9 |
) |
|
21.7 |
|
|
224.3 |
|
Interest expense (1) |
|
— |
|
|
— |
|
|
— |
|
|
(156.1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(156.1 |
) |
Other income (expense), net |
|
(0.6 |
) |
|
(1.4 |
) |
|
— |
|
|
(8.3 |
) |
|
— |
|
|
0.1 |
|
|
2.5 |
|
|
0.2 |
|
|
1.9 |
|
|
(9.4 |
) |
Income (loss) from operations of
discontinued businesses
before income taxes |
|
25.5 |
|
|
38.7 |
|
|
(4.1 |
) |
|
23.7 |
|
|
(0.4 |
) |
|
(1.9 |
) |
|
2.6 |
|
|
(1.7 |
) |
|
23.6 |
|
|
58.8 |
|
Gain (loss) on disposal of
discontinued operations
before income taxes |
|
— |
|
|
— |
|
|
0.4 |
|
|
— |
|
|
1.0 |
|
|
(0.6 |
) |
|
— |
|
|
— |
|
|
1.4 |
|
|
(0.6 |
) |
Income tax (expense) benefit |
|
320.9 |
|
|
(12.7 |
) |
|
(76.1 |
) |
|
(26.2 |
) |
|
(0.1 |
) |
|
6.2 |
|
|
(0.6 |
) |
|
0.4 |
|
|
244.1 |
|
|
(32.3 |
) |
Income (loss) from
discontinued operations,
net of income taxes |
$ |
346.4 |
|
$ |
26.0 |
|
$ |
(79.8 |
) |
$ |
(2.5 |
) |
$ |
0.5 |
|
$ |
3.7 |
|
$ |
2.0 |
|
$ |
(1.3 |
) |
$ |
269.1 |
|
$ |
25.9 |
|
(1)In connection with the sale of the CCS segment that was completed on January 9, 2026, the terms of the Purchase Agreement with Amphenol required that the CCS segment be transferred on a debt‑free basis, and therefore, the Company repaid its third‑party borrowings at closing using a portion of the proceeds from the sale of the CCS segment. Accordingly, all third-party debt obligations remained classified as long-term debt on the Condensed Consolidated Balance Sheets as of December 31, 2025. However, in accordance with accounting guidance, interest expense on debt that is required to be repaid as a direct result of a disposal transaction that qualifies as a discontinued operation is reported within discontinued operations. Because the closing of the divestiture required repayment of all outstanding third‑party debt due to the contractual requirement to deliver the business debt‑free, all interest expense has been presented within discontinued operations for all periods presented. The following table presents the summarized components of income (loss) from discontinued operations, net of income taxes, for the six months ended June 30, 2026 and 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RUCKUS |
|
CCS |
|
OWN |
|
DAS |
|
Home |
|
Total |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net sales |
$ |
351.0 |
|
$ |
341.1 |
|
$ |
87.5 |
|
$ |
1,599.5 |
|
$ |
(0.5 |
) |
$ |
89.3 |
|
$ |
— |
|
$ |
11.7 |
|
$ |
0.4 |
|
$ |
9.9 |
|
$ |
438.4 |
|
$ |
2,051.5 |
|
Cost of sales |
|
120.0 |
|
|
113.9 |
|
|
59.2 |
|
|
1,016.4 |
|
|
— |
|
|
49.8 |
|
|
— |
|
|
10.0 |
|
|
0.1 |
|
|
11.7 |
|
|
179.3 |
|
|
1,201.8 |
|
Gross profit (loss) |
|
231.0 |
|
|
227.2 |
|
|
28.3 |
|
|
583.1 |
|
|
(0.5 |
) |
|
39.5 |
|
|
— |
|
|
1.7 |
|
|
0.3 |
|
|
(1.8 |
) |
|
259.1 |
|
|
849.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative |
|
111.5 |
|
|
90.1 |
|
|
11.8 |
|
|
172.5 |
|
|
0.1 |
|
|
20.2 |
|
|
— |
|
|
3.4 |
|
|
0.2 |
|
|
(2.4 |
) |
|
123.6 |
|
|
283.8 |
|
Research and development |
|
53.8 |
|
|
56.3 |
|
|
1.9 |
|
|
36.5 |
|
|
— |
|
|
3.1 |
|
|
— |
|
|
3.0 |
|
|
— |
|
|
— |
|
|
55.7 |
|
|
98.9 |
|
Amortization of purchased
intangible assets |
|
13.7 |
|
|
25.0 |
|
|
— |
|
|
35.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13.7 |
|
|
60.4 |
|
Restructuring costs, net |
|
2.9 |
|
|
2.3 |
|
|
0.1 |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3.0 |
|
|
2.7 |
|
Total operating expenses |
|
181.9 |
|
|
173.7 |
|
|
13.8 |
|
|
244.8 |
|
|
0.1 |
|
|
23.3 |
|
|
— |
|
|
6.4 |
|
|
0.2 |
|
|
(2.4 |
) |
|
196.0 |
|
|
445.8 |
|
Operating income (loss) |
|
49.1 |
|
|
53.5 |
|
|
14.5 |
|
|
338.3 |
|
|
(0.6 |
) |
|
16.2 |
|
|
— |
|
|
(4.7 |
) |
|
0.1 |
|
|
0.6 |
|
|
63.1 |
|
|
403.9 |
|
Interest expense (1) |
|
— |
|
|
— |
|
|
(129.1 |
) |
|
(329.7 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(129.1 |
) |
|
(329.7 |
) |
Other income (expense),
net (2) |
|
(0.2 |
) |
|
(2.0 |
) |
|
(11.4 |
) |
|
(12.9 |
) |
|
— |
|
|
(1.1 |
) |
|
— |
|
|
— |
|
|
2.5 |
|
|
0.2 |
|
|
(9.1 |
) |
|
(15.8 |
) |
Income (loss) from
operations of discontinued
businesses before income
taxes |
|
48.9 |
|
|
51.5 |
|
|
(126.0 |
) |
|
(4.3 |
) |
|
(0.6 |
) |
|
15.1 |
|
|
— |
|
|
(4.7 |
) |
|
2.6 |
|
|
0.8 |
|
|
(75.1 |
) |
|
58.4 |
|
Gain on disposal of
discontinued operations
before income taxes |
|
— |
|
|
— |
|
|
7,008.3 |
|
|
— |
|
|
1.0 |
|
|
869.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7,009.3 |
|
|
869.2 |
|
Income tax (expense) benefit |
|
512.5 |
|
|
(16.9 |
) |
|
(1,685.6 |
) |
|
(49.6 |
) |
|
(0.1 |
) |
|
(385.6 |
) |
|
— |
|
|
2.0 |
|
|
(0.6 |
) |
|
(0.1 |
) |
|
(1,173.8 |
) |
|
(450.2 |
) |
Income (loss) from
discontinued operations,
net of income taxes |
$ |
561.4 |
|
$ |
34.6 |
|
$ |
5,196.7 |
|
$ |
(53.9 |
) |
$ |
0.3 |
|
$ |
498.7 |
|
$ |
— |
|
$ |
(2.7 |
) |
$ |
2.0 |
|
$ |
0.7 |
|
$ |
5,760.4 |
|
$ |
477.4 |
|
(1)In connection with the sale of the CCS segment that was completed on January 9, 2026, the terms of the Purchase Agreement with Amphenol required that the CCS segment be transferred on a debt‑free basis, and therefore, the Company repaid its third‑party borrowings at closing using a portion of the proceeds from the sale of the CCS segment. Accordingly, all third-party debt obligations remained classified as long-term debt on the Condensed Consolidated Balance Sheets as of December 31, 2025. However, in accordance with accounting guidance, interest expense on debt that is required to be repaid as a direct result of a disposal transaction that qualifies as a discontinued operation is reported within discontinued operations. Because the closing of the divestiture required repayment of all outstanding third‑party debt due to the contractual requirement to deliver the business debt‑free, all interest expense, including the write-off of $101.3 million of unamortized debt issuance costs and original issuance discount associated with the debt redemption, has been presented within discontinued operations for all periods presented. (2)Other income (expense), net includes a loss of $11.3 million on the extinguishment of debt, for the six months ended June 30, 2026, associated with the divestiture of the CCS segment. The following table presents balance sheet information for assets and liabilities held for sale related to the discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Cash and cash equivalents |
|
|
$ |
38.0 |
|
|
$ |
309.2 |
|
Accounts receivable, net |
|
|
|
134.8 |
|
|
|
703.5 |
|
Inventories, net |
|
|
|
84.5 |
|
|
|
584.2 |
|
Prepaid expenses and other current assets |
|
|
|
15.7 |
|
|
|
87.0 |
|
Property, plant, and equipment, net |
|
|
|
7.9 |
|
|
|
293.4 |
|
Goodwill |
|
|
|
495.9 |
|
|
|
2,160.6 |
|
Other intangible assets, net |
|
|
|
106.4 |
|
|
|
186.0 |
|
Deferred income taxes |
|
|
|
68.9 |
|
|
|
107.0 |
|
Other assets |
|
|
|
25.0 |
|
|
|
193.7 |
|
Total current assets held for sale |
|
|
$ |
977.1 |
|
|
$ |
4,624.6 |
|
Property, plant, and equipment, net |
|
|
|
— |
|
|
|
8.3 |
|
Goodwill |
|
|
|
— |
|
|
|
495.9 |
|
Other intangible assets, net |
|
|
|
— |
|
|
|
120.1 |
|
Deferred income taxes |
|
|
|
— |
|
|
|
43.6 |
|
Other noncurrent assets |
|
|
|
— |
|
|
|
28.1 |
|
Total noncurrent assets |
|
|
$ |
— |
|
|
$ |
696.0 |
|
Total assets held for sale |
|
|
$ |
977.1 |
|
|
$ |
5,320.6 |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
$ |
34.3 |
|
|
$ |
474.1 |
|
Accrued and other liabilities |
|
|
|
306.0 |
|
|
|
531.1 |
|
Deferred income taxes |
|
|
|
— |
|
|
|
22.2 |
|
Total current liabilities held for sale |
|
|
$ |
340.3 |
|
|
$ |
1,027.4 |
|
Other noncurrent liabilities |
|
|
|
— |
|
|
|
120.0 |
|
Total liabilities held for sale |
|
|
$ |
340.3 |
|
|
$ |
1,147.4 |
|
The following table presents the details of the gain on disposal of the CCS segment and the OWN segment and DAS business unit, collectively:
|
|
|
|
|
|
|
|
|
|
|
CCS |
|
|
OWN/DAS |
|
|
|
January 9, 2026 |
|
|
January 31, 2025 |
|
Cash consideration received (net of cash acquired) |
|
$ |
10,541.7 |
|
|
$ |
2,034.5 |
|
Transaction expense |
|
|
(81.3 |
) |
|
|
(9.1 |
) |
Total disposal consideration |
|
|
10,460.4 |
|
|
|
2,025.4 |
|
Carrying value of net assets sold (1) |
|
|
(3,325.7 |
) |
|
|
(1,057.3 |
) |
Gain on disposal before income taxes and reclassification of
foreign currency translation and other |
|
|
7,134.7 |
|
|
|
968.1 |
|
Reclassification of foreign currency translation and other (2) |
|
|
(126.4 |
) |
|
|
(97.9 |
) |
Gain on disposal before income taxes |
|
|
7,008.3 |
|
|
|
870.2 |
|
Income tax expense (1) |
|
|
(1,653.3 |
) |
|
|
(378.9 |
) |
Gain on disposal, net of income taxes (1) |
|
$ |
5,355.0 |
|
|
$ |
491.3 |
|
(1)During the three months ended June 30, 2026, the Company recorded a $1.0 million adjustment to the carrying value of the OWN/DAS disposal group, along with the related tax effects, which impacted the gain on disposal recognized in discontinued operations. (2)Includes the reclassifications of foreign currency translation, defined benefit plan activity and hedging instrument amounts from accumulated other comprehensive income (loss) on the Condensed Consolidated Balance Sheets related to the divestiture of the CCS segment during the first quarter of 2026. Includes the reclassification of foreign currency translation from accumulated other comprehensive income (loss) on the Condensed Consolidated Balance Sheets related to the divestiture of the OWN segment and DAS business unit during the first quarter of 2025. The following table summarizes the Company’s net cash inflows (outflows) related to the ongoing activities of the discontinued operations, including the Amphenol and Vantiva TSAs, as described below, and inventory sales resulting from the Amphenol MSA and Vantiva Supply Agreement, as described above:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
Amphenol TSA fees |
|
$ |
(5.7 |
) |
|
$ |
10.6 |
|
Amphenol MSA inventory sales |
|
|
8.1 |
|
|
|
8.1 |
|
Vantiva Supply Agreement and other inventory sales |
|
|
— |
|
|
|
8.5 |
|
Vantiva TSA fees |
|
|
— |
|
|
|
3.5 |
|
The following table summarizes significant non-cash operating items of the discontinued operations included on the Condensed Consolidated Statements of Cash Flows:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
Gain on disposal of discontinued operations |
|
$ |
7,009.3 |
|
|
$ |
869.2 |
|
Depreciation and amortization |
|
|
14.6 |
|
|
|
86.4 |
|
Additions to property, plant and equipment |
|
|
1.4 |
|
|
|
22.9 |
|
Equity-based compensation |
|
|
5.0 |
|
|
|
5.5 |
|
|