Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Revenues from Contracts with Customers by Major Product Line

The following table summarizes the revenues from contracts with customers by major product line for the three and six months ended June 30, 2018 (in thousands):

	Three months ended June 30, 2018			Six months ended June 30, 2018
CPE:
Broadband CPE	$	405,082		$	728,367
Video CPE		603,049			1,154,990
Sub-total		1,008,131			1,883,357
Network & Cloud:
Networks		479,386			932,387
Software and services		70,110			155,373
Sub-total		549,496			1,087,760
Enterprise Networks:
Enterprise Networks		172,240			342,154
Other:
Other		(3,327	)		(9,021	)
Total net sales	$	1,726,540		$	3,304,250

Summary of Revenues from Contracts with Customers by Geographic Areas

The following table summarizes the revenues from contracts with customers by geographic areas for the three and six months ended June 30, 2018 (in thousands):

	For the three months ended June 30, 2018
	CPE		N&C		Enterprise		Other (1)			Total
Domestic – U.S.	$	540,452	$	345,828	$	111,967	$	(4,404	)	$	993,843
Americas, excluding U.S.		220,350		105,981		1,770		(8	)		328,093
Asia Pacific		29,081		39,578		23,477		(39	)		92,097
EMEA		218,248		58,109		35,026		1,124			312,507
Total international		467,679		203,668		60,273		1,077			732,697
Total net revenues	$	1,008,131	$	549,496	$	172,240	$	(3,327	)	$	1,726,540

	For the six months ended June 30, 2018
	CPE		N&C		Enterprise		Other (1)			Total
Domestic – U.S.	$	1,014,614	$	672,311	$	207,682	$	(7,606	)	$	1,887,001
Americas, excluding U.S.		376,213		199,881		7,622		(5	)		583,711
Asia Pacific		51,205		95,343		53,102		(39	)		199,611
EMEA		441,325		120,225		73,748		(1,371	)		633,927
Total international		868,743		415,449		134,472		(1,415	)		1,417,249
Total net revenues	$	1,883,357	$	1,087,760	$	342,154	$	(9,021	)	$	3,304,250

(1) Adjustments include acquisition accounting impacts related to deferred revenue

Comparison of Financial Statements to Pro-Forma Amounts had Previous Guidance been in Effect

The following table compares the reported condensed balance sheet and statement of operations, as of and for the three and six months ended June 30, 2018, to the pro-forma amounts had the previous guidance been in effect (in thousands):

	As reported June 30, 2018		Pro forma – as if previous accounting guidance was in effect
Assets
Accounts receivable	$	1,183,360	$	1,163,234
Other current assets		196,014		195,950
Deferred income taxes		146,443		140,831
Liabilities
Deferred revenue (current and non-current)	$	181,823	$	190,220

	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	As reported			Pro-forma			As reported			Pro-forma
Revenues
Net sales	$	1,726,540		$	1,714,584		$	3,304,250		$	3,275,727
Costs and expenses
Cost of sales	$	1,227,785		$	1,227,785		$	2,329,812		$	2,329,876
Income tax (benefit) expense		(9,944	)		(6,964	)		(6,454	)		(843	)
Consolidated net income (loss)		34,799			19,863			17,766			(16,432	)
Net loss attributable to non-controlling interest		(955	)		(1,540	)		(4,388	)		(5,130	)
Net income (loss) attributable to ARRIS International plc		35,754			21,403			22,154			(11,302	)
Net income (loss) per ordinary share:
Basic	$	0.19		$	0.12		$	0.12		$	(0.06	)
Diluted	$	0.19		$	0.12		$	0.12		$	(0.06	)

Schedule of Changes in Deferred Revenue

The following table summarizes the changes in deferred revenue for the six months ended of June 30, 2018 (in thousands)

Opening balance at January 1, 2018	$	168,757
Deferral of revenue		106,506
Recognition of unearned revenue		(92,470	)
Other		(970	)
Balance at June 30, 2018	$	181,823