v3.26.3
Divestitures (Tables)
 9 Months Ended
Sep. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
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 September 30, 2026 and 2025:

 

RUCKUS

 

CCS

 

OWN

 

Home

 

Total

 

 

2026

 

2025

 

2026

 

2025

 

2026

 

2025

 

2026

 

2025

 

2026

 

2025

 

Net sales

$

—

 

$

178.5

 

$

—

 

$

1,113.4

 

$

(0.2

)

$

0.9

 

$

0.1

 

$

3.2

 

$

(0.1

)

$

1,296.0

 

Cost of sales (1)

 

0.1

 

 

54.5

 

 

(25.9

)

 

689.9

 

 

—

 

 

—

 

 

—

 

 

2.7

 

 

(25.8

)

 

747.1

 

Gross profit (loss)

 

(0.1

)

 

124.0

 

 

25.9

 

 

423.5

 

 

(0.2

)

 

0.9

 

 

0.1

 

 

0.5

 

 

25.7

 

 

548.9

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and
   administrative

 

6.1

 

 

48.9

 

 

—

 

 

103.0

 

 

—

 

 

2.6

 

 

—

 

 

0.4

 

 

6.1

 

 

154.9

 

Research and development

 

—

 

 

32.0

 

 

—

 

 

20.7

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

52.7

 

Amortization of purchased
   intangible assets

 

—

 

 

12.5

 

 

—

 

 

17.7

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

30.2

 

Restructuring costs (credits), net

 

—

 

 

0.4

 

 

—

 

 

(0.2

)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

0.2

 

   Total operating expenses

 

6.1

 

 

93.8

 

 

—

 

 

141.2

 

 

—

 

 

2.6

 

 

—

 

 

0.4

 

 

6.1

 

 

238.0

 

Operating income (loss)

 

(6.2

)

 

30.2

 

 

25.9

 

 

282.3

 

 

(0.2

)

 

(1.7

)

 

0.1

 

 

0.1

 

 

19.6

 

 

310.9

 

Interest expense (2)

 

—

 

 

—

 

 

—

 

 

(154.6

)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(154.6

)

Other income (expense), net

 

0.7

 

 

0.2

 

 

0.4

 

 

(1.1

)

 

—

 

 

—

 

 

(0.2

)

 

—

 

 

0.9

 

 

(0.9

)

Income (loss) from operations of
   discontinued businesses
   before income taxes

 

(5.5

)

 

30.4

 

 

26.3

 

 

126.6

 

 

(0.2

)

 

(1.7

)

 

(0.1

)

 

0.1

 

 

20.5

 

 

155.4

 

Gain (loss) on disposal of
   discontinued operations
   before income taxes

 

1,258.6

 

 

—

 

 

(2.3

)

 

—

 

 

—

 

 

(0.2

)

 

—

 

 

—

 

 

1,256.3

 

 

(0.2

)

Income tax (expense) benefit

 

(125.5

)

 

(10.0

)

 

(175.4

)

 

(21.2

)

 

—

 

 

3.2

 

 

—

 

 

0.1

 

 

(300.9

)

 

(27.9

)

Income (loss) from
   discontinued operations,
   net of income taxes

$

1,127.6

 

$

20.4

 

$

(151.4

)

$

105.4

 

$

(0.2

)

$

1.3

 

$

(0.1

)

$

0.2

 

$

975.9

 

$

127.3

 
(1)
During the three months ended September 30, 2026, the Company received $26.1 million related to tariff refund claims associated with products sold by its previously divested CCS business. The amount reflects the settlement and recovery of tariffs previously paid on imported products and is included in the results of discontinued operations for the period presented.
(2)
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 Sheet 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 nine months ended September 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

 

$

519.7

 

$

87.4

 

$

2,712.9

 

$

(0.7

)

$

90.2

 

$

—

 

$

11.7

 

$

0.4

 

$

13.1

 

$

438.1

 

$

3,347.6

 

Cost of sales (1)

 

120.1

 

 

168.4

 

 

33.3

 

 

1,706.4

 

 

—

 

 

49.8

 

 

—

 

 

10.0

 

 

0.1

 

 

14.4

 

 

153.5

 

 

1,949.0

 

Gross profit (loss)

 

230.9

 

 

351.3

 

 

54.1

 

 

1,006.5

 

 

(0.7

)

 

40.4

 

 

—

 

 

1.7

 

 

0.3

 

 

(1.3

)

 

284.6

 

 

1,398.6

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and
   administrative

 

117.6

 

 

139.0

 

 

11.7

 

 

275.5

 

 

0.1

 

 

22.8

 

 

—

 

 

3.4

 

 

0.2

 

 

(2.0

)

 

129.6

 

 

438.7

 

Research and development

 

53.8

 

 

88.3

 

 

1.9

 

 

57.1

 

 

—

 

 

3.1

 

 

—

 

 

3.0

 

 

—

 

 

—

 

 

55.7

 

 

151.5

 

Amortization of purchased
   intangible assets

 

13.7

 

 

37.4

 

 

—

 

 

53.1

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

13.7

 

 

90.5

 

Restructuring costs, net

 

2.9

 

 

2.7

 

 

0.1

 

 

0.2

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

3.0

 

 

2.9

 

   Total operating expenses

 

188.0

 

 

267.4

 

 

13.7

 

 

385.9

 

 

0.1

 

 

25.9

 

 

—

 

 

6.4

 

 

0.2

 

 

(2.0

)

 

202.0

 

 

683.6

 

Operating income (loss)

 

42.9

 

 

83.9

 

 

40.4

 

 

620.6

 

 

(0.8

)

 

14.5

 

 

—

 

 

(4.7

)

 

0.1

 

 

0.7

 

 

82.6

 

 

715.0

 

Interest expense (2)

 

—

 

 

—

 

 

(129.1

)

 

(484.4

)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(129.1

)

 

(484.4

)

Other income (expense),
   net (3)

 

0.6

 

 

(2.0

)

 

(11.1

)

 

(13.9

)

 

—

 

 

(1.1

)

 

—

 

 

—

 

 

2.3

 

 

0.2

 

 

(8.2

)

 

(16.8

)

Income (loss) from
   operations of discontinued
   businesses before income
   taxes

 

43.5

 

 

81.9

 

 

(99.8

)

 

122.3

 

 

(0.8

)

 

13.4

 

 

—

 

 

(4.7

)

 

2.4

 

 

0.9

 

 

(54.7

)

 

213.8

 

Gain on disposal of
   discontinued operations
   before income taxes

 

1,258.6

 

 

—

 

 

7,006.1

 

 

—

 

 

1.0

 

 

869.0

 

 

—

 

 

—

 

 

—

 

 

—

 

 

8,265.7

 

 

869.0

 

Income tax (expense) benefit

 

387.0

 

 

(26.9

)

 

(1,861.1

)

 

(70.8

)

 

—

 

 

(382.4

)

 

—

 

 

2.0

 

 

(0.6

)

 

—

 

 

(1,474.7

)

 

(478.1

)

Income (loss) from
   discontinued operations,
   net of income taxes

$

1,689.1

 

$

55.0

 

$

5,045.2

 

$

51.5

 

$

0.2

 

$

500.0

 

$

—

 

$

(2.7

)

$

1.8

 

$

0.9

 

$

6,736.3

 

$

604.7

 
(1)
During the nine months ended September 30, 2026, the Company received $26.1 million related to tariff refund claims associated with products sold by its previously divested CCS business. The amount reflects the settlement and recovery of tariffs previously paid on imported products and is included in the results of discontinued operations for the period presented.
(2)
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.
(3)
Includes a loss of $11.3 million on the extinguishment of debt, for the nine months ended September 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:

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

Cash and cash equivalents

 

 

 

$

309.2

 

Accounts receivable, net

 

 

 

 

703.5

 

Inventories, net

 

 

 

 

584.2

 

Prepaid expenses and other current assets

 

 

 

 

87.0

 

Property, plant and equipment, net

 

 

 

 

293.4

 

Goodwill

 

 

 

 

2,160.6

 

Other intangible assets, net

 

 

 

 

186.0

 

Deferred income taxes

 

 

 

 

107.0

 

Other assets

 

 

 

 

193.7

 

Total current assets held for sale

 

 

 

$

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

 

 

 

$

5,320.6

 

 

 

 

 

 

 

Accounts payable

 

 

 

$

474.1

 

Accrued and other liabilities

 

 

 

 

531.1

 

Deferred income taxes

 

 

 

 

22.2

 

Total current liabilities held for sale

 

 

 

$

1,027.4

 

Other noncurrent liabilities

 

 

 

 

120.0

 

Total liabilities held for sale

 

 

 

$

1,147.4

 

 

The following table presents the details of the gain on disposal of the RUCKUS segment, the CCS segment, and the OWN segment and DAS business unit, collectively:

 

RUCKUS

 

CCS

 

OWN/DAS

 

 

July 1, 2026

 

January 9, 2026

 

January 31, 2025

 

Cash consideration received (net of cash acquired) (1)

$

1,869.6

 

$

10,540.2

 

$

2,034.5

 

Transaction expense

 

(16.2

)

 

(81.3

)

 

(9.1

)

Total disposal consideration

 

1,853.4

 

 

10,458.9

 

 

2,025.4

 

Carrying value of net assets sold (1)

 

(594.2

)

 

(3,326.4

)

 

(1,057.5

)

Gain on disposal before income taxes and reclassification of
   foreign currency translation and other

 

1,259.2

 

 

7,132.5

 

 

967.9

 

Reclassification of foreign currency translation and other (2)

 

(0.6

)

 

(126.4

)

 

(97.9

)

Gain on disposal before income taxes

 

1,258.6

 

 

7,006.1

 

 

870.0

 

Income tax expense (1)

 

(112.7

)

 

(1,819.2

)

 

(377.4

)

Gain on disposal, net of income taxes (1)

$

1,145.9

 

$

5,186.9

 

$

492.6

 
(1)
During the three and nine months ended September 30, 2026, cash consideration was reduced by $1.5 million as the Company finalized the consideration for the CCS divestiture and recorded working capital and other asset adjustments totaling $0.7 million to the carrying value of net assets sold for certain assets transferred in the transaction. During the nine months ended September 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. During the three and nine months ended September 30, 2026, the Company recorded $165.9 million of additional tax expense associated with the gain on the CCS sale. With the RUCKUS sale closing in the third quarter of 2026, the utilization of certain tax attributes were adjusted between the CCS and RUCKUS transactions.
(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 each of the divestitures.
The following table summarizes the Company’s net cash inflows (outflows) related to the ongoing activities of the discontinued operations, including the Belden, Amphenol and Vantiva TSAs, as described below, and inventory sales resulting from the Amphenol MSA and Vantiva Supply Agreement, as described above:

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2026

 

 

2025

 

Belden TSA fees

 

$

4.8

 

 

$

—

 

Amphenol TSA fees

 

 

(5.8

)

 

 

24.4

 

Amphenol MSA inventory sales

 

 

8.4

 

 

 

16.2

 

Vantiva Supply Agreement and other inventory sales

 

 

—

 

 

 

14.2

 

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:

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2026

 

 

2025

 

Gain on disposal of discontinued operations

 

$

8,265.7

 

 

$

869.0

 

Depreciation and amortization

 

 

14.6

 

 

 

129.2

 

Additions to property, plant and equipment

 

 

1.4

 

 

 

31.6

 

Equity-based compensation

 

 

5.2

 

 

 

9.0