8-K
0001049502false00010495022023-08-022023-08-02

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 02, 2023

 

 

MKS INSTRUMENTS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Massachusetts

000-23621

04-2277512

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

2 Tech Drive

Suite 201

 

Andover, Massachusetts

 

01810

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 978 645-5500

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, no par value

 

MKSI

 

Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

On August 2, 2023, MKS Instruments, Inc. announced its financial results for the quarter ended June 30, 2023. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

99.1 Press Release dated August 2, 2023

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

MKS Instruments, Inc.

 

 

 

 

Date:

August 2, 2023

By:

/s/ Seth H. Bagshaw

 

 

 

Name: Seth H. Bagshaw
Title: Executive Vice President, Chief Financial Officer and Treasurer

 


EX-99.1

https://cdn.kscope.io/a6d4b22f5613a2e5d6c6309da003e71b-img23390321_0.jpg 

EXHIBIT 99.1

 

MKS Instruments Reports Second Quarter 2023 Financial Results

 

Revenue of $1.0 billion, up 26% sequentially and above the midpoint of guidance
Semiconductor market revenue of $440 million, up 42% sequentially and above high end of guidance
Gross margin of 46.9%, above high end of guidance
GAAP net loss per share of $26.47, which includes goodwill and intangible asset impairments
Non-GAAP net earnings per diluted share of $1.32, above the midpoint of guidance

Andover, MA, August 2, 2023 -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported second quarter 2023 financial results.

“We delivered strong results in the second quarter, led by solid execution and disciplined cost management,” said John T.C. Lee, President and Chief Executive Officer.

Mr. Lee added, “Longer term, we are very excited about how we are positioned to capitalize on multiple secular tailwinds that are driving our served markets. AI, cloud, virtual reality, and electrification are among the applications powering the need for innovation in advanced electronics devices, and the critical solutions that we have added with the Atotech acquisition have made MKS foundational to enabling that innovation.”

“We delivered revenue and Non-GAAP net earnings per diluted share above the midpoint of our guidance for the quarter and continue to make great progress on the integration of Atotech,” said Seth H. Bagshaw, Executive Vice President and Chief Financial Officer. “The non-cash impairment charges we recorded this quarter, primarily resulting from softer demand in the PC and smartphone markets and higher interest rates, do not temper our enthusiasm for what we are building in Electronics & Packaging. We believe we are poised to benefit from an eventual market recovery.”

Mr. Bagshaw added, “Near-term, we continue to expect MKS’ total revenue in the second half of the year to be slightly higher than first half levels, driven by modest improvements across all three of our end markets. We also expect cash flow to normalize in the third quarter and look forward to making steady progress in de-levering the balance sheet.”

Third Quarter 2023 Outlook

The Company expects for the third quarter of 2023, revenue of $930 million, plus or minus $50 million, Adjusted EBITDA of $210 million, plus or minus $26 million, and Non-GAAP net earnings per diluted share of $0.98, plus or minus $0.29.

 


Conference Call Details

A conference call with management will be held on Thursday, August 3, 2023 at 8:00 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

About MKS Instruments

MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world's leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.


Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results.

MKS is not providing a quantitative reconciliation of forward-looking Non-GAAP net earnings per diluted share and Adjusted EBITDA to their most directly comparable GAAP financial measures because it is unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts. These items include, but are not limited to, acquisition and integration costs, amortization of intangible assets, ransomware remediation costs, restructuring and other expense, goodwill and intangible asset impairments or other asset impairments, debt refinancing, prepayments of term loan principal, and the income tax effect of these items. These items are uncertain, depend on various factors, including, but not limited to, our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), timing of ransomware remediation, and interest rate and refinancing environment, and could have a material impact on GAAP reported results for the relevant period.

For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

 

 


Selected GAAP and Non-GAAP Financial Measures

(In millions, except per share data)

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

Q2 2023

 

 

Q1 2023

 

 

Q2 2022

 

 

Q2 2023

 

 

Q2 2022

 

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Semiconductor

$

440

 

 

$

309

 

 

$

515

 

 

$

750

 

 

$

1,003

 

Electronics and Packaging

 

225

 

 

 

222

 

 

 

49

 

 

 

447

 

 

 

109

 

Specialty Industrial

 

338

 

 

 

263

 

 

 

201

 

 

 

600

 

 

 

395

 

   Total net revenues

$

1,003

 

 

$

794

 

 

$

765

 

 

$

1,797

 

 

$

1,507

 

GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

46.9

%

 

 

42.2

%

 

 

44.2

%

 

 

44.8

%

 

 

44.6

%

Operating margin

 

(169.1

%)

 

 

0.1

%

 

 

21.5

%

 

 

(94.3

%)

 

 

22.3

%

Net (loss) income

$

(1,769

)

 

$

(42

)

 

$

130

 

 

$

(1,812

)

 

$

273

 

Diluted (loss) earnings per share

$

(26.47

)

 

$

(0.64

)

 

$

2.32

 

 

$

(27.14

)

 

$

4.89

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

46.9

%

 

 

42.2

%

 

 

44.2

%

 

 

44.8

%

 

 

44.6

%

Operating margin

 

22.6

%

 

 

12.1

%

 

 

24.1

%

 

 

17.9

%

 

 

24.8

%

Net earnings

$

88

 

 

$

32

 

 

$

145

 

 

$

120

 

 

$

296

 

Diluted earnings per share

$

1.32

 

 

$

0.48

 

 

$

2.59

 

 

$

1.80

 

 

$

5.31

 

 

Additional Financial Information

At June 30, 2023, the Company had $758 million in cash and short-term investments, $5.1 billion of secured term loan principal outstanding, and up to $500 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the second quarter of 2023, the Company paid a cash dividend of $15 million or $0.22 per diluted share.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS”, the “Company”, “our”, or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the need to generate sufficient cash flows to service and repay the substantial indebtedness we incurred in connection with the Atotech Acquisition; the terms of our existing credit facilities under which we incurred such debt; our entry into the chemicals technology business through the Atotech Acquisition, in which we do not have experience and which may expose us to significant additional


liabilities; the risk that we are unable to integrate the Atotech Acquisition successfully or realize the anticipated synergies, cost savings and other benefits of the Atotech Acquisition; the ongoing assessment of the ransomware incident we identified on February 3, 2023, including legal, reputational, financial and contractual risks resulting from the incident, and other risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business and the businesses of Atotech and Electro Scientific Industries, Inc., which we acquired in February 2019, and financial risks associated with those and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand and the impact of COVID-19 or any other pandemic, including with respect to such supply chain disruptions, component shortages and price increases; risks associated with doing business internationally, including trade compliance, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning local and international operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described in MKS’ Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent Quarterly Reports on Form 10-Q, as filed with the SEC. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

###

Company Contact:

David Ryzhik

Vice President, Investor Relations

Telephone: (978) 557-5180

Email: david.ryzhik@mksinst.com


MKS Instruments, Inc.

Unaudited Consolidated Statements of Operations

(In millions, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

$

885

 

 

$

712

 

 

$

664

 

 

$

1,597

 

 

$

1,312

 

Services

 

118

 

 

 

82

 

 

 

101

 

 

 

200

 

 

 

195

 

Total net revenues

 

1,003

 

 

 

794

 

 

 

765

 

 

 

1,797

 

 

 

1,507

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

470

 

 

 

409

 

 

 

377

 

 

 

878

 

 

 

737

 

Services

 

63

 

 

 

50

 

 

 

50

 

 

 

113

 

 

 

98

 

Total cost of revenues (exclusive of amortization shown separately below)

 

533

 

 

 

459

 

 

 

427

 

 

 

991

 

 

 

835

 

Gross profit

 

470

 

 

 

335

 

 

 

338

 

 

 

806

 

 

 

672

 

Research and development

 

75

 

 

 

72

 

 

 

53

 

 

 

147

 

 

 

105

 

Selling, general and administrative

 

172

 

 

 

174

 

 

 

101

 

 

 

348

 

 

 

193

 

Acquisition and integration costs

 

5

 

 

 

6

 

 

 

2

 

 

 

11

 

 

 

10

 

Restructuring

 

11

 

 

 

1

 

 

 

3

 

 

 

12

 

 

 

5

 

Amortization of intangible assets

 

76

 

 

 

81

 

 

 

15

 

 

 

157

 

 

 

30

 

Goodwill and intangible asset impairments

 

1,827

 

 

 

 

 

 

 

 

 

1,827

 

 

 

 

Gain on sale of long-lived assets

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

(Loss) income from operations

 

(1,696

)

 

 

1

 

 

 

164

 

 

 

(1,696

)

 

 

336

 

Interest income

 

(4

)

 

 

(3

)

 

 

(1

)

 

 

(7

)

 

 

(1

)

Interest expense

 

88

 

 

 

85

 

 

 

7

 

 

 

173

 

 

 

13

 

Other expense (income), net

 

11

 

 

 

(2

)

 

 

2

 

 

 

9

 

 

 

(3

)

(Loss) income before income taxes

 

(1,791

)

 

 

(79

)

 

 

156

 

 

 

(1,871

)

 

 

327

 

(Benefit) provision for income taxes

 

(22

)

 

 

(37

)

 

 

26

 

 

 

(59

)

 

 

54

 

Net (loss) income

$

(1,769

)

 

$

(42

)

 

$

130

 

 

$

(1,812

)

 

$

273

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(26.47

)

 

$

(0.64

)

 

$

2.33

 

 

$

(27.14

)

 

$

4.90

 

Diluted

$

(26.47

)

 

$

(0.64

)

 

$

2.32

 

 

$

(27.14

)

 

$

4.89

 

Cash dividend per common share

$

0.22

 

 

$

0.22

 

 

$

0.22

 

 

$

0.44

 

 

$

0.44

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

66.8

 

 

 

66.7

 

 

 

55.7

 

 

 

66.8

 

 

 

55.6

 

Diluted

 

66.8

 

 

 

66.7

 

 

 

55.8

 

 

 

66.8

 

 

 

55.8

 

 


MKS Instruments, Inc.

Unaudited Consolidated Balance Sheet

(In millions)

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

757

 

 

$

909

 

Short-term investments

 

 

1

 

 

 

1

 

Accounts receivable, net

 

 

631

 

 

 

720

 

Inventories

 

 

1,036

 

 

 

977

 

Other current assets

 

 

303

 

 

187

 

Total current assets

 

 

2,728

 

 

 

2,794

 

Property, plant and equipment, net

 

 

777

 

 

 

800

 

Right-of-use assets, net

 

 

237

 

 

 

234

 

Goodwill

 

 

2,575

 

 

 

4,308

 

Intangible assets, net

 

 

2,728

 

 

 

3,173

 

Other assets

 

 

185

 

 

 

186

 

Total assets

 

$

9,230

 

 

$

11,495

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Short-term debt

 

$

88

 

 

$

93

 

Accounts payable

 

 

314

 

 

 

426

 

Other current liabilities

 

 

433

 

 

 

433

 

Total current liabilities

 

 

835

 

 

 

952

 

Long-term debt, net

 

 

4,819

 

 

 

4,834

 

Non-current deferred taxes

 

 

628

 

 

 

783

 

Non-current accrued compensation

 

 

143

 

 

 

138

 

Non-current lease liabilities

 

 

217

 

 

 

215

 

Other liabilities

 

 

93

 

 

 

90

 

Total liabilities

 

 

6,735

 

 

 

7,012

 

Stockholders' equity

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

Additional paid-in capital

 

 

2,168

 

 

 

2,142

 

Retained earnings

 

 

431

 

 

 

2,272

 

Accumulated other comprehensive (loss) income

 

 

(104

)

 

 

69

 

Total stockholders' equity

 

 

2,495

 

 

 

4,483

 

Total liabilities and stockholders' equity

 

$

9,230

 

 

$

11,495

 

 


MKS Instruments, Inc.

Unaudited Consolidated Statements of Cash Flows

(In millions)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(1,769

)

 

$

(42

)

 

$

130

 

 

$

(1,812

)

 

$

273

 

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

101

 

 

 

107

 

 

 

28

 

 

 

208

 

 

 

56

 

Goodwill and intangible asset impairments

 

1,827

 

 

 

 

 

 

 

 

 

1,827

 

 

 

 

Unrealized loss on derivatives not designated as hedging instruments

 

6

 

 

 

13

 

 

 

4

 

 

 

20

 

 

 

7

 

Amortization of debt issuance costs and original issue discounts

 

7

 

 

 

8

 

 

 

 

 

 

15

 

 

 

 

Gain on sale of long-lived assets

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

Stock-based compensation

 

13

 

 

 

18

 

 

 

13

 

 

 

31

 

 

 

21

 

Provision for excess and obsolete inventory

 

12

 

 

 

18

 

 

 

3

 

 

 

30

 

 

 

7

 

Deferred income taxes

 

(109

)

 

 

(10

)

 

 

 

 

 

(120

)

 

 

(2

)

Other

 

1

 

 

 

 

 

 

2

 

 

 

1

 

 

 

2

 

Changes in operating assets and liabilities, net of acquired assets and liabilities

 

(148

)

 

 

(75

)

 

 

(75

)

 

 

(222

)

 

 

(211

)

Net cash (used in) provided by operating activities

 

(59

)

 

 

37

 

 

 

105

 

 

(22

)

 

146

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of investments

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Maturities of investments

 

 

 

 

 

 

 

41

 

 

 

 

 

 

76

 

Proceeds from sale of long-lived assets

 

 

 

 

 

 

 

 

 

 

1

 

 

 

7

 

Purchases of property, plant and equipment

 

(18

)

 

 

(17

)

 

 

(64

)

 

 

(35

)

 

 

(83

)

Net cash used in investing activities

 

(18

)

 

 

(17

)

 

 

(24

)

 

(34

)

 

(1

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from borrowings

 

 

 

 

2

 

 

 

3

 

 

 

1

 

 

 

6

 

Payments of borrowings

 

(22

)

 

 

(23

)

 

 

(6

)

 

 

(45

)

 

 

(8

)

Dividend payments

 

(15

)

 

 

(15

)

 

 

(12

)

 

 

(29

)

 

 

(24

)

Net proceeds (payments) related to employee stock awards

 

1

 

 

 

(6

)

 

 

1

 

 

 

(5

)

 

 

(5

)

Other financing activities

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

(35

)

 

 

(43

)

 

 

(14

)

 

 

(78

)

 

 

(31

)

Effect of exchange rate changes on cash and cash equivalents

 

(11

)

 

 

(6

)

 

 

(13

)

 

 

(18

)

 

 

(15

)

(Decrease) increase in cash and cash equivalents

 

(123

)

 

 

(29

)

 

54

 

 

(152

)

 

99

 

Cash and cash equivalents at beginning of period

 

880

 

 

 

909

 

 

 

1,011

 

 

 

909

 

 

 

966

 

Cash and cash equivalents at end of period

$

757

 

 

$

880

 

 

$

1,065

 

 

$

757

 

 

$

1,065

 

 

 


The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:

MKS Instruments, Inc.

Schedule Reconciling Selected Non-GAAP Financial Measures

(In millions, except per share data)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net (loss) income

$

(1,769

)

 

$

(42

)

 

$

130

 

 

$

(1,812

)

 

$

273

 

Acquisition and integration costs (Note 1)

 

5

 

 

 

6

 

 

 

2

 

 

 

11

 

 

 

10

 

Restructuring (Note 2)

 

11

 

 

 

1

 

 

 

3

 

 

 

12

 

 

 

5

 

Goodwill and intangible asset impairments (Note 3)

 

1,827

 

 

 

 

 

 

 

 

 

1,827

 

 

 

 

Amortization of debt issuance costs (Note 4)

 

5

 

 

 

6

 

 

 

 

 

 

11

 

 

 

 

Ransomware incident (Note 5)

 

4

 

 

 

7

 

 

 

 

 

 

11

 

 

 

 

Gain on sale of long-lived assets (Note 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

Currency hedge gain (Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

Amortization of intangible assets

 

76

 

 

 

81

 

 

 

15

 

 

 

157

 

 

 

30

 

Windfall tax expense (benefit) on stock-based compensation (Note 8)

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

(1

)

Foreign tax rate adjustment (Note 9)

 

 

 

 

(3

)

 

 

 

 

 

(2

)

 

 

 

Tax effect of Non-GAAP adjustments (Note 10)

 

(72

)

 

 

(24

)

 

 

(5

)

 

 

(96

)

 

 

(9

)

Non-GAAP net earnings

$

88

 

 

$

32

 

 

$

145