CTV » Topics » Commitments and Contingencies

This excerpt taken from the CTV 10-Q filed Apr 28, 2009.

Commitments and Contingencies

In 2007, a jury ruled in favor of TruePosition, Inc., finding that Andrew had willfully infringed a single TruePosition patent, and the jury awarded $45.3 million in damages to TruePosition (see Note 15 in the Notes to the Consolidated Financial Statements in the 2008 Form 10-K). On July 31, 2008, the court reduced the compensatory damages award to $18.6 million and awarded enhanced damages of $4.7 million for willful infringement. As part of certain post-trial proceedings related to an additional phase and other matters related to the project that underlies this action, the Company believes its liability for this additional phase and other matters is expected to be approximately $3.1 million, subject to the trial court’s final determination, which may or may not result in additional liability related to these issues. As a result, the liability as of March 31, 2009 was $32.4 million (including interest), which represents the Company’s best estimate of the probable liability to TruePosition. Subject to the outcome of possible additional legal actions taken by the Company and/or TruePosition, the ultimate resolution of the TruePosition litigation may be materially different than the Company’s current estimate, which does not include legal fees the Company may incur in appeals or other proceedings.

In addition to the TruePosition litigation described above, CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters, other than the TruePosition litigation, will have a material adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a material adverse effect on the Company’s financial condition or results of operations.

As of March 31, 2009, the Company had commitments of approximately $54.1 million to purchase metals that are expected to be consumed during normal production over the balance of 2009. These commitments are at prices approximately 35% higher than market prices.

This excerpt taken from the CTV 10-K filed Feb 26, 2009.

15.    COMMITMENTS AND CONTINGENCIES

CommScope leases certain equipment and facilities under operating leases expiring at various dates through 2022. Rent expense was $35.7 million in 2008, $10.6 million in 2007 and $11.8 million in 2006. Future minimum rental payments required under operating leases and capital leases having a remaining term in excess of one year at December 31, 2008 are as follows:

 

     Operating Leases    Capital Leases  

2009

   $ 30,642    $ 3,025  

2010

     23,741      2,942  

2011

     18,103      499  

2012

     15,403      158  

2013

     13,217       

Thereafter

     60,469       
               

Total minimum lease payments

     161,575      6,624  

Less: Amount representing interest

          (362 )
               
   $ 161,575    $ 6,262  
               

 

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Table of Contents

CommScope, Inc.

Notes to Consolidated Financial Statements—(Continued)

(In Thousands, Unless Otherwise Noted)

 

Product warranty reserves are reflected in other current accrued liabilities. The following table summarizes the activity for the years ended December 31, 2008, 2007 and 2006 related to the warranty reserves.

 

     2008     2007     2006  

Reserve at beginning of year

   $ 29,183     $ 2,090     $ 2,035  

Provision for warranties

     15,188       3,754       194  

Allocation of Andrew purchase price

     24,291       24,677        

Payments

     (35,796 )     (1,338 )     (139 )
                        

Reserve at end of year

   $ 32,866     $  29,183     $    2,090  
                        

In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

This excerpt taken from the CTV 10-Q filed Nov 5, 2008.

Commitments and Contingencies

 

In 2007, a jury ruled in favor of TruePosition, Inc., finding that Andrew had willfully infringed a single TruePosition patent, and the jury awarded $45.3 million in damages to TruePosition (see Note 16 in the Notes to the Consolidated Financial Statements in the 2007 Form 10-K). As a result of the jury verdict, a $45.3 million liability was included in other accrued liabilities as of December 31, 2007.  On July 31, 2008, the court reduced the compensatory damages award to $18.6 million and awarded enhanced damages of $4.7 million for willful infringement.  As a result, the liability as of September 30, 2008 was $28.2 million (including interest), which represents the Company’s best estimate of the probable liability to TruePosition. Subject to the outcome of possible additional legal actions taken by the Company and/or TruePosition, the ultimate resolution of the TruePosition litigation may be materially different than the Company’s current estimate, which does not include legal fees the Company may incur in appeals or other proceedings. In addition to the TruePosition litigation described above, CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters, other than the TruePosition litigation, will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

 

As of September 30, 2008, the Company had commitments of approximately $131 million to purchase metals that are expected to be consumed during normal production.  Due to the recent declines in commodity prices, most of these commitments are at prices higher than market prices as of September 30, 2008.  The commitments cover products that will be purchased through the fourth quarter of 2009.

 

This excerpt taken from the CTV 10-Q filed Aug 6, 2008.

Commitments and Contingencies

In 2007, a jury ruled in favor of TruePosition, Inc., finding that Andrew had willfully infringed a single TruePosition patent, and the jury awarded $45.3 million in damages to TruePosition (see Note 16 in the Notes to the Consolidated Financial Statements in the 2007 Form 10-K). As a result of the jury verdict, a $45.3 million liability was included in other accrued liabilities as of December 31, 2007.  On July 31, 2008, the court reduced the compensatory damages award to $18.6 million and awarded enhanced damages of $4.7 million for willful infringement.  As a result, the liability was reduced to $27.6 million (including interest) as of June 30, 2008, which represents the Company’s best estimate of the probable liability to TruePosition. Subject to the outcome of possible additional legal actions taken by the Company and/or TruePosition, the ultimate resolution of the TruePosition litigation may be materially different than the Company’s current estimate, which does not include legal fees the Company may incur in appeals or other proceedings. In addition to the TruePosition litigation described above, CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters, other than the TruePosition litigation, will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

 

This excerpt taken from the CTV 10-Q filed May 7, 2008.

Commitments and Contingencies

 

In 2007, a jury ruled in favor of TruePosition, Inc., finding that Andrew had willfully infringed a single TruePosition patent, and the jury awarded $45.3 million in damages to TruePosition (see Note 16 in the Notes to the Consolidated Financial Statements in the 2007 Form 10-K). In addition to the TruePosition litigation described above, CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters, other than the TruePosition litigation, will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

 

This excerpt taken from the CTV 10-K filed Feb 28, 2008.

16.    COMMITMENTS AND CONTINGENCIES

        CommScope leases certain equipment and facilities under operating leases expiring at various dates through 2019. Rent expense was $10.6 million in 2007, $11.8 million in 2006 and $11.5 million in 2005. Future minimum rental payments required under operating leases and capital leases having a remaining term in excess of one year at December 31, 2007 are as follows:

 
  Operating Leases
  Capital Leases
 
2008   $ 35,484   $ 681  
2009     28,989     569  
2010     22,953     532  
2011     18,161     493  
2012     15,867     143  
Thereafter     75,312      
   
 
 
Total minimum lease payments     196,766     2,418  
Less: Amount representing interest         (285 )
   
 
 
    $ 196,766   $ 2,133  
   
 
 

        Product warranty reserves are reflected in other current accrued liabilities. The following table summarizes the activity for the years ended December 31, 2007, 2006 and 2005 related to the warranty reserves.

 
  2007
  2006
  2005
 
Reserve at beginning of year   $ 2,090   $ 2,035   $ 1,531  
Provision for warranties     3,754     194     808  
Acquisition of Andrew     24,677          
Payments     (1,338 )   (139 )   (304 )
   
 
 
 
Reserve at end of year   $ 29,183   $ 2,090   $ 2,035  
   
 
 
 
This excerpt taken from the CTV 10-Q filed Nov 7, 2007.

Commitments and Contingencies

 

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

 

This excerpt taken from the CTV 10-Q filed Aug 2, 2007.

Commitments and Contingencies

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

This excerpt taken from the CTV 10-Q filed May 1, 2007.

Commitments and Contingencies

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

This excerpt taken from the CTV 10-Q filed Nov 2, 2006.

Commitments and Contingencies

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

This excerpt taken from the CTV 10-Q filed Aug 3, 2006.

Commitments and Contingencies

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

This excerpt taken from the CTV 10-Q filed May 5, 2006.

Commitments and Contingencies

 

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

 

This excerpt taken from the CTV 10-Q filed Nov 7, 2005.

Commitments and Contingencies

 

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition.  In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials.  Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

 

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This excerpt taken from the CTV 10-Q filed Aug 5, 2005.
Commitments and Contingencies

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

Commitments and Contingencies

 

CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company’s financial statements upon final disposition.  In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials.  Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations.

 

This excerpt taken from the CTV 10-K filed Mar 15, 2005.

19.    COMMITMENTS AND CONTINGENCIES

        CommScope leases certain equipment and facilities under operating leases expiring at various dates through the year 2019. Rent expense was $8.8 million in 2004, $6.3 million in 2003 and $7.1 million in 2002. Future minimum rental payments required under operating leases with initial terms of one year or more as of December 31, 2004 are: $9.2 million in 2005; $6.5 million in 2006; $5.7 million in 2007; $5.1 million in 2008; $4.1 million in 2009; and $9.6 million thereafter.

        Prior to the acquisition of Connectivity Solutions as of January 31, 2004, the Company's product warranty liability and the related activity was insignificant to the financial position and results of operations of the Company. However, the acquisition of Connectivity Solutions has increased the

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Company's product warranty exposure and related liability. Product warranty reserves are reflected in other current accrued liabilities. The following table summarizes the activity for the year ended December 31, 2004 related to the warranty reserves.

Reserve at beginning of year   $ 576  
Connectivity Solutions liability assumed     2,314  
Provision for warranties     183  
Payments     (1,542 )
   
 
Reserve at end of year   $ 1,531  
   
 

        CommScope is either a plaintiff or a defendant in pending legal matters in the normal course of business; however, management believes none of these legal matters will have a materially adverse effect on the Company's financial position or results of operations upon final disposition. In addition, CommScope is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company's financial condition or results of operations.

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