Basis of Presentation and Significant Accounting Policies

5 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Note 2. Basis of Presentation and Significant Accounting Policies

The accompanying unaudited consolidated financial statements of ARRIS International have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information, the instructions to Form 10-Q and Article 10

of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the consolidated financial statements for the interim periods. The financial statements include certain costs and expenses incurred by ARRIS that are associated with the Company’s activities since its incorporation based on allocation methods that management believes are reasonable and supportable. The accompanying financial statements exclude all acquisition related expenditures associated with the planned acquisition of Pace.

Items included in these financial statements are measured using the currency of the primary economic environment in which ARRIS International operates (“the functional currency”). The financial statements are presented in United States dollars, which is ARRIS International’s functional currency.

In April 2015, the Financial Accounting Standards Board issued new guidance, which requires the cost of issuing debt to no longer be recorded as a separate asset but rather to be presented on the balance sheet as a direct reduction to the carrying value of the related debt liability, similar to the presentation of debt discounts. This guidance will be effective for interim and annual periods beginning after December 15, 2015 including retrospective conforming presentation of prior periods presented. Early adoption of the standard is permitted. While the adoption of this standard may impact the presentation on the Company's balance sheet, it will not affect the Company's results of operations, financial position or cash flows. As of September 30, 2015, the Company had deferred financing costs of $10,871 thousand.

The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the SEC.