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Warrants
12 Months Ended
Dec. 31, 2018
Warrants and Rights Note Disclosure [Abstract]  
Warrants

Note 18. Warrants

 

During 2016, the Company entered into two separate Warrant and Registration Rights Agreements (the “Warrants”) with certain customers pursuant to which those customers may purchase up to 14.0 million of ARRIS’s ordinary shares, (subject to adjustment in accordance with the terms of the Warrants, the “Shares”).

 

The Warrants will vest in tranches based on the amount of purchases of products and services by the customer from the Company. At December 31, 2018 and December 31, 2017, approximately 2.2 million Warrants were vested and outstanding, with a weighted average exercise price of $24.64, which vested based on the amount of purchases of products and services by the customers from the Company in 2016.

 

For the year ended December 31, 2018 and 2017, there were no adjustments related to the Warrants. For the year ended December 31, 2016, ARRIS recorded $30.2 million as a reduction to net sales in connection with Warrants. This transaction is considered an equity contract and is classified as such.