None00014181009/3010-Q2022Q3FALSEhttp://fasb.org/us-gaap/2022#InterestExpensehttp://fasb.org/us-gaap/2022#InterestExpensehttp://fasb.org/us-gaap/2022#InterestExpensehttp://fasb.org/us-gaap/2022#InterestExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherNonoperatingIncomeExpensehttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrentP3Y0M0D00014181002021-10-012022-06-3000014181002023-04-30xbrli:shares0001418100us-gaap:ProductMember2022-04-012022-06-30iso4217:USD0001418100us-gaap:ProductMember2021-04-012021-06-300001418100us-gaap:ProductMember2021-10-012022-06-300001418100us-gaap:ProductMember2020-10-012021-06-300001418100us-gaap:ServiceMember2022-04-012022-06-300001418100us-gaap:ServiceMember2021-04-012021-06-300001418100us-gaap:ServiceMember2021-10-012022-06-300001418100us-gaap:ServiceMember2020-10-012021-06-3000014181002022-04-012022-06-3000014181002021-04-012021-06-3000014181002020-10-012021-06-30iso4217:USDxbrli:shares0001418100avya:CommonStockAndCommonStockEquivalentsMember2022-04-012022-06-300001418100avya:CommonStockAndCommonStockEquivalentsMember2021-10-012022-06-300001418100avya:CommonStockAndCommonStockEquivalentsMember2020-10-012021-06-3000014181002022-06-3000014181002021-09-300001418100us-gaap:SeriesAPreferredStockMember2022-06-300001418100us-gaap:SeriesAPreferredStockMember2021-09-300001418100us-gaap:CommonStockMember2021-09-300001418100us-gaap:AdditionalPaidInCapitalMember2021-09-300001418100us-gaap:RetainedEarningsMember2021-09-300001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001418100us-gaap:CommonStockMember2021-10-012021-12-310001418100us-gaap:AdditionalPaidInCapitalMember2021-10-012021-12-3100014181002021-10-012021-12-310001418100us-gaap:CommonStockMember2021-12-310001418100us-gaap:AdditionalPaidInCapitalMember2021-12-310001418100us-gaap:RetainedEarningsMember2021-12-310001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100014181002021-12-310001418100us-gaap:CommonStockMember2022-01-012022-03-3100014181002022-01-012022-03-310001418100us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001418100us-gaap:CommonStockMember2022-03-310001418100us-gaap:AdditionalPaidInCapitalMember2022-03-310001418100us-gaap:RetainedEarningsMember2022-03-310001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100014181002022-03-310001418100us-gaap:CommonStockMember2022-04-012022-06-300001418100us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001418100us-gaap:CommonStockMember2022-06-300001418100us-gaap:AdditionalPaidInCapitalMember2022-06-300001418100us-gaap:RetainedEarningsMember2022-06-300001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001418100us-gaap:CommonStockMember2020-09-300001418100us-gaap:AdditionalPaidInCapitalMember2020-09-300001418100us-gaap:RetainedEarningsMember2020-09-300001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-3000014181002020-09-300001418100us-gaap:CommonStockMember2020-10-012020-12-3100014181002020-10-012020-12-310001418100us-gaap:AdditionalPaidInCapitalMember2020-10-012020-12-310001418100us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201613Member2020-12-310001418100us-gaap:AccountingStandardsUpdate201613Member2020-12-310001418100us-gaap:CommonStockMember2020-12-310001418100us-gaap:AdditionalPaidInCapitalMember2020-12-310001418100us-gaap:RetainedEarningsMember2020-12-310001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100014181002020-12-310001418100us-gaap:CommonStockMember2021-01-012021-03-310001418100us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100014181002021-01-012021-03-310001418100us-gaap:CommonStockMember2021-03-310001418100us-gaap:AdditionalPaidInCapitalMember2021-03-310001418100us-gaap:RetainedEarningsMember2021-03-310001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100014181002021-03-310001418100us-gaap:CommonStockMember2021-04-012021-06-300001418100us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001418100us-gaap:CommonStockMember2021-06-300001418100us-gaap:AdditionalPaidInCapitalMember2021-06-300001418100us-gaap:RetainedEarningsMember2021-06-300001418100us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000014181002021-06-30avya:segment0001418100us-gaap:ExchangeableDebtMemberus-gaap:SubsequentEventMember2022-07-12xbrli:pure0001418100us-gaap:SubsequentEventMember2023-02-142023-02-140001418100us-gaap:SubsequentEventMember2023-02-140001418100us-gaap:SubsequentEventMemberavya:DIPTermLoanMember2023-02-140001418100avya:DIPABLLoanMemberus-gaap:SubsequentEventMember2023-02-240001418100us-gaap:SubsequentEventMember2023-03-222023-03-220001418100us-gaap:SubsequentEventMember2023-05-010001418100us-gaap:SubsequentEventMemberavya:DIPTermLoanMember2023-05-010001418100avya:DIPABLLoanMemberus-gaap:SubsequentEventMember2023-05-010001418100us-gaap:SubsequentEventMember2022-09-300001418100us-gaap:AccountingStandardsUpdate202006Memberus-gaap:SubsequentEventMember2022-10-010001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100us-gaap:CorporateNonSegmentMember2022-04-012022-06-300001418100us-gaap:CorporateNonSegmentMember2021-04-012021-06-300001418100us-gaap:CorporateNonSegmentMember2021-10-012022-06-300001418100us-gaap:CorporateNonSegmentMember2020-10-012021-06-300001418100country:USavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100avya:ServicesMembercountry:USus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100country:US2022-04-012022-06-300001418100country:USavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100avya:ServicesMembercountry:USus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100country:US2021-04-012021-06-300001418100us-gaap:EMEAMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100avya:ServicesMemberus-gaap:EMEAMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100us-gaap:EMEAMember2022-04-012022-06-300001418100us-gaap:EMEAMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100avya:ServicesMemberus-gaap:EMEAMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100us-gaap:EMEAMember2021-04-012021-06-300001418100srt:AsiaPacificMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100srt:AsiaPacificMemberavya:ServicesMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100srt:AsiaPacificMember2022-04-012022-06-300001418100srt:AsiaPacificMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100srt:AsiaPacificMemberavya:ServicesMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100srt:AsiaPacificMember2021-04-012021-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100avya:ServicesMemberavya:AmericasInternationalCanadaAndLatinAmericaMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMember2022-04-012022-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100avya:ServicesMemberavya:AmericasInternationalCanadaAndLatinAmericaMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMember2021-04-012021-06-300001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2022-04-012022-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2022-04-012022-06-300001418100us-gaap:NonUsMember2022-04-012022-06-300001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2021-04-012021-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2021-04-012021-06-300001418100us-gaap:NonUsMember2021-04-012021-06-300001418100country:USavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100avya:ServicesMembercountry:USus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100country:US2021-10-012022-06-300001418100country:USavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100avya:ServicesMembercountry:USus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100us-gaap:CorporateNonSegmentMembercountry:US2020-10-012021-06-300001418100country:US2020-10-012021-06-300001418100us-gaap:EMEAMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100avya:ServicesMemberus-gaap:EMEAMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100us-gaap:EMEAMember2021-10-012022-06-300001418100us-gaap:EMEAMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100avya:ServicesMemberus-gaap:EMEAMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100us-gaap:CorporateNonSegmentMemberus-gaap:EMEAMember2020-10-012021-06-300001418100us-gaap:EMEAMember2020-10-012021-06-300001418100srt:AsiaPacificMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100srt:AsiaPacificMemberavya:ServicesMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100srt:AsiaPacificMember2021-10-012022-06-300001418100srt:AsiaPacificMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100srt:AsiaPacificMemberavya:ServicesMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100us-gaap:CorporateNonSegmentMembersrt:AsiaPacificMember2020-10-012021-06-300001418100srt:AsiaPacificMember2020-10-012021-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100avya:ServicesMemberavya:AmericasInternationalCanadaAndLatinAmericaMemberus-gaap:OperatingSegmentsMember2021-10-012022-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMember2021-10-012022-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMemberavya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100avya:ServicesMemberavya:AmericasInternationalCanadaAndLatinAmericaMemberus-gaap:OperatingSegmentsMember2020-10-012021-06-300001418100us-gaap:CorporateNonSegmentMemberavya:AmericasInternationalCanadaAndLatinAmericaMember2020-10-012021-06-300001418100avya:AmericasInternationalCanadaAndLatinAmericaMember2020-10-012021-06-300001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2021-10-012022-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2021-10-012022-06-300001418100us-gaap:NonUsMember2021-10-012022-06-300001418100avya:ProductsandSolutionsMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2020-10-012021-06-300001418100avya:ServicesMemberus-gaap:OperatingSegmentsMemberus-gaap:NonUsMember2020-10-012021-06-300001418100us-gaap:CorporateNonSegmentMemberus-gaap:NonUsMember2020-10-012021-06-300001418100us-gaap:NonUsMember2020-10-012021-06-3000014181002022-07-012022-06-3000014181002023-07-012022-06-300001418100srt:MinimumMember2023-07-012022-06-300001418100srt:MaximumMember2023-07-012022-06-300001418100avya:CostsToObtainMember2022-06-300001418100avya:CostsToObtainMember2021-09-300001418100avya:CostsToObtainMember2021-10-012022-06-300001418100avya:CostsToFulfillMember2022-06-300001418100avya:CostsToFulfillMember2021-09-300001418100avya:CostsToFulfillMember2021-10-012022-06-300001418100us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-04-012022-06-300001418100us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-04-012021-06-300001418100us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-10-012022-06-300001418100us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-10-012021-06-300001418100us-gaap:SalesMember2022-04-012022-06-300001418100us-gaap:SalesMember2021-04-012021-06-300001418100us-gaap:SalesMember2021-10-012022-06-300001418100us-gaap:SalesMember2020-10-012021-06-300001418100us-gaap:CostOfSalesMember2022-04-012022-06-300001418100us-gaap:CostOfSalesMember2021-04-012021-06-300001418100us-gaap:CostOfSalesMember2021-10-012022-06-300001418100us-gaap:CostOfSalesMember2020-10-012021-06-300001418100us-gaap:AccountsReceivableMember2021-09-300001418100avya:ContractAssetsCurrentMember2021-09-300001418100us-gaap:OtherAssetsMember2021-09-300001418100us-gaap:AccountsReceivableMember2021-10-012022-06-300001418100avya:ContractAssetsCurrentMember2021-10-012022-06-300001418100us-gaap:OtherAssetsMember2021-10-012022-06-300001418100us-gaap:AccountsReceivableMember2022-06-300001418100avya:ContractAssetsCurrentMember2022-06-300001418100us-gaap:OtherAssetsMember2022-06-300001418100avya:ProductsandSolutionsMember2021-09-300001418100avya:ServicesMember2021-09-300001418100avya:ProductsandSolutionsMember2021-10-012022-06-300001418100avya:ServicesMember2021-10-012022-06-300001418100avya:ProductsandSolutionsMember2022-06-300001418100avya:ServicesMember2022-06-300001418100avya:TechnologyAndPatentsMember2022-06-300001418100avya:CustomerRelationshipsAndOtherIntangiblesMember2022-06-300001418100us-gaap:TrademarksAndTradeNamesMember2022-06-300001418100avya:TechnologyAndPatentsMember2022-06-300001418100avya:CustomerRelationshipsAndOtherIntangiblesMember2022-06-300001418100us-gaap:TrademarksAndTradeNamesMember2022-06-300001418100avya:TechnologyAndPatentsMember2021-10-012022-06-300001418100avya:CustomerRelationshipsAndOtherIntangiblesMember2021-10-012022-06-300001418100us-gaap:TrademarksAndTradeNamesMember2021-10-012022-06-300001418100avya:TechnologyAndPatentsMember2022-06-300001418100avya:CustomerRelationshipsAndOtherIntangiblesMember2022-06-300001418100us-gaap:TrademarksAndTradeNamesMember2022-06-300001418100avya:TechnologyAndPatentsMember2021-09-300001418100avya:CustomerRelationshipsAndOtherIntangiblesMember2021-09-300001418100us-gaap:TrademarksAndTradeNamesMember2021-09-300001418100avya:TechnologyAndPatentsMember2021-09-300001418100avya:CustomerRelationshipsAndOtherIntangiblesMember2021-09-300001418100us-gaap:TrademarksAndTradeNamesMember2021-09-300001418100avya:TechnologyAndPatentsMember2021-09-300001418100avya:CustomerRelationshipsAndOtherIntangiblesMember2021-09-300001418100us-gaap:TrademarksAndTradeNamesMember2021-09-300001418100us-gaap:EmployeeSeveranceMember2022-04-012022-06-300001418100us-gaap:EmployeeSeveranceMember2021-04-012021-06-300001418100us-gaap:EmployeeSeveranceMember2021-10-012022-06-300001418100us-gaap:EmployeeSeveranceMember2020-10-012021-06-300001418100avya:FacilityExitCostsMember2022-04-012022-06-300001418100avya:FacilityExitCostsMember2021-04-012021-06-300001418100avya:FacilityExitCostsMember2021-10-012022-06-300001418100avya:FacilityExitCostsMember2020-10-012021-06-300001418100avya:Fiscal2022RestructuringProgramMember2021-09-300001418100avya:Fiscal2021RestructuringProgramMember2021-09-300001418100avya:Fiscal2020AndPriorRestructuringProgramsMember2021-09-300001418100avya:Fiscal2022RestructuringProgramMember2021-10-012022-06-300001418100avya:Fiscal2021RestructuringProgramMember2021-10-012022-06-300001418100avya:Fiscal2020AndPriorRestructuringProgramsMember2021-10-012022-06-300001418100us-gaap:RestructuringChargesMember2021-10-012022-06-300001418100avya:Fiscal2022RestructuringProgramMember2022-06-300001418100avya:Fiscal2021RestructuringProgramMember2022-06-300001418100avya:Fiscal2020AndPriorRestructuringProgramsMember2022-06-300001418100us-gaap:SeniorNotesMember2022-06-300001418100us-gaap:SeniorNotesMember2021-09-300001418100avya:TermLoanCreditAgreementTrancheB1Member2022-06-300001418100avya:TermLoanCreditAgreementTrancheB1Member2021-09-300001418100avya:TermLoanCreditAgreementTrancheB2Member2022-06-300001418100avya:TermLoanCreditAgreementTrancheB2Member2021-09-300001418100us-gaap:ConvertibleDebtMember2022-06-300001418100us-gaap:ConvertibleDebtMember2021-09-300001418100us-gaap:RevolvingCreditFacilityMemberavya:ABLCreditAgreementMember2017-12-150001418100avya:TermLoanCreditAgreementTrancheBMember2021-02-230001418100avya:TermLoanCreditAgreementTrancheB1Member2021-02-2300014181002021-02-242021-02-240001418100avya:TermLoanCreditAgreementTrancheB2Memberus-gaap:BaseRateMember2021-02-240001418100avya:TermLoanCreditAgreementTrancheB2Memberus-gaap:LondonInterbankOfferedRateLIBORMember2021-02-240001418100us-gaap:InterestExpenseMember2020-10-012021-06-300001418100us-gaap:InterestExpenseMember2021-04-012021-06-300001418100avya:TermLoanCreditAgreementMember2022-04-012022-06-300001418100avya:TermLoanCreditAgreementMember2021-04-012021-06-300001418100avya:TermLoanCreditAgreementMember2021-10-012022-06-300001418100avya:TermLoanCreditAgreementMember2020-10-012021-06-300001418100us-gaap:LineOfCreditMemberavya:ABLCreditAgreementMemberus-gaap:LetterOfCreditMember2020-10-012021-06-300001418100us-gaap:LineOfCreditMemberavya:ABLCreditAgreementMemberus-gaap:LetterOfCreditMember2021-10-012022-06-300001418100us-gaap:SeniorNotesMember2020-09-250001418100us-gaap:SeniorNotesMember2022-04-012022-06-300001418100us-gaap:SeniorNotesMember2021-04-012021-06-300001418100us-gaap:SeniorNotesMember2021-10-012022-06-300001418100us-gaap:SeniorNotesMember2020-10-012021-06-300001418100us-gaap:ConvertibleDebtMember2018-06-110001418100us-gaap:OverAllotmentOptionMemberus-gaap:ConvertibleDebtMember2018-06-110001418100us-gaap:ConvertibleDebtMember2022-04-012022-06-300001418100us-gaap:ConvertibleDebtMember2021-10-012022-06-300001418100us-gaap:ConvertibleDebtMember2020-10-012021-06-300001418100avya:TermLoanCreditAgreementTrancheB3Memberus-gaap:SubsequentEventMember2022-07-122022-07-120001418100us-gaap:ConvertibleDebtMemberus-gaap:SubsequentEventMember2022-07-120001418100us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberavya:ExitTermLoanMemberus-gaap:SubsequentEventMember2023-05-01utr:Rate0001418100us-gaap:BaseRateMemberavya:ExitTermLoanMemberus-gaap:SubsequentEventMember2023-05-010001418100avya:ExitABLLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:SubsequentEventMember2023-05-010001418100avya:ExitABLLoanMemberus-gaap:BaseRateMemberus-gaap:SubsequentEventMember2023-05-0100014181002018-05-162018-05-16avya:counterparty0001418100us-gaap:InterestRateSwapMember2018-05-160001418100us-gaap:InterestRateSwapMember2020-09-230001418100avya:OffsettingInterestRateSwapMember2020-09-230001418100us-gaap:InterestRateSwapMember2022-06-300001418100avya:ForwardInterestRateSwapMember2020-07-012020-07-010001418100avya:ForwardInterestRateSwapMember2020-07-010001418100avya:ForwardInterestRateSwapMember2022-06-300001418100us-gaap:InterestRateSwapMember2021-10-012022-06-300001418100avya:NewForwardInterestRateSwapMember2022-03-232022-03-230001418100avya:NewForwardInterestRateSwapMember2022-03-230001418100avya:NewForwardInterestRateSwapMember2022-06-300001418100avya:ForwardInterestRateSwapMember2022-03-230001418100us-gaap:ForeignExchangeContractMember2022-06-300001418100us-gaap:ForeignExchangeContractMember2021-09-3000014181002017-12-1500014181002018-11-140001418100us-gaap:MeasurementInputPriceVolatilityMember2022-06-300001418100us-gaap:MeasurementInputPriceVolatilityMember2021-09-300001418100us-gaap:MeasurementInputRiskFreeInterestRateMember2022-06-300001418100us-gaap:MeasurementInputRiskFreeInterestRateMember2021-09-300001418100us-gaap:MeasurementInputExpectedTermMember2022-06-30avya:year0001418100us-gaap:MeasurementInputExpectedTermMember2021-09-300001418100us-gaap:WarrantMember2022-06-300001418100us-gaap:WarrantMember2021-09-300001418100us-gaap:MeasurementInputExpectedDividendRateMember2021-09-30avya:unit0001418100us-gaap:MeasurementInputExpectedDividendRateMember2022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:InterestRateSwapMember2022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:InterestRateSwapMember2021-09-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMember2022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMember2021-09-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2021-09-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMember2022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMember2021-09-300001418100us-gaap:DesignatedAsHedgingInstrumentMember2022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001418100us-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2022-06-300001418100us-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2021-09-300001418100us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMember2022-06-300001418100us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMember2021-09-300001418100us-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-06-300001418100us-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2021-09-300001418100us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:WarrantMember2022-06-300001418100us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberus-gaap:WarrantMember2021-09-300001418100us-gaap:NondesignatedMember2022-06-300001418100us-gaap:NondesignatedMember2021-09-300001418100us-gaap:DesignatedAsHedgingInstrumentMember2022-04-012022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-04-012022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMember2021-04-012021-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-04-012021-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2022-04-012022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2021-04-012021-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMember2021-10-012022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-10-012022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMember2020-10-012021-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-10-012021-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2021-10-012022-06-300001418100us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMember2020-10-012021-06-300001418100us-gaap:NondesignatedMemberus-gaap:WarrantMember2022-04-012022-06-300001418100us-gaap:NondesignatedMemberus-gaap:WarrantMember2021-04-012021-06-300001418100us-gaap:NondesignatedMemberus-gaap:WarrantMember2021-10-012022-06-300001418100us-gaap:NondesignatedMemberus-gaap:WarrantMember2020-10-012021-06-300001418100us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2022-04-012022-06-300001418100us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2021-04-012021-06-300001418100us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2021-10-012022-06-300001418100us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2020-10-012021-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel1Member2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateContractMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel1Member2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateContractMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:WarrantMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:WarrantMemberus-gaap:FairValueInputsLevel1Member2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:WarrantMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:WarrantMember2022-06-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:WarrantMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:WarrantMemberus-gaap:FairValueInputsLevel1Member2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:WarrantMember2021-09-300001418100us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:WarrantMember2021-09-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-06-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2021-09-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMemberavya:TermLoanCreditAgreementTrancheB1Member2022-06-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMemberavya:TermLoanCreditAgreementTrancheB1Member2021-09-300001418100avya:TermLoanCreditAgreementTrancheB2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001418100avya:TermLoanCreditAgreementTrancheB2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:ConvertibleDebtMember2022-06-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:ConvertibleDebtMember2021-09-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001418100us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001418100srt:RevisionOfPriorPeriodReclassificationAdjustmentMember2022-04-012022-06-300001418100srt:RevisionOfPriorPeriodReclassificationAdjustmentMember2022-06-300001418100country:USus-gaap:PensionPlansDefinedBenefitMember2022-04-012022-06-300001418100country:USus-gaap:PensionPlansDefinedBenefitMember2021-04-012021-06-300001418100country:USus-gaap:PensionPlansDefinedBenefitMember2021-10-012022-06-300001418100country:USus-gaap:PensionPlansDefinedBenefitMember2020-10-012021-06-300001418100us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2022-04-012022-06-300001418100us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2021-04-012021-06-300001418100us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2021-10-012022-06-300001418100us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2020-10-012021-06-300001418100country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-04-012022-06-300001418100country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-04-012021-06-300001418100country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-10-012022-06-300001418100country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-10-012021-06-300001418100us-gaap:ForeignPlanMember2021-10-012022-06-300001418100us-gaap:ForeignPlanMember2022-06-300001418100country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-06-300001418100country:USus-gaap:DefinedBenefitPostretirementHealthCoverageMember2021-10-012022-06-300001418100country:USus-gaap:DefinedBenefitPostretirementHealthCoverageMember2022-06-300001418100avya:A2019EquityIncentivePlanMember2022-06-300001418100avya:A2019EquityIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-03-010001418100avya:A2019EquityIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-03-020001418100avya:A2019EquityIncentivePlanMemberus-gaap:StockAppreciationRightsSARSMember2022-06-300001418100avya:A2019EquityIncentivePlanMemberus-gaap:EmployeeStockOptionMember2022-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2021-10-012022-06-300001418100us-gaap:PerformanceSharesMember2021-10-012022-06-300001418100avya:StockBonusProgramMember2022-06-300001418100us-gaap:EmployeeStockMember2021-10-012022-06-300001418100avya:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2021-10-012022-06-300001418100avya:CallSpreadOptionMember2022-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2021-10-012022-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2020-10-012021-06-300001418100us-gaap:PerformanceSharesMember2022-04-012022-06-300001418100us-gaap:PerformanceSharesMember2021-04-012021-06-300001418100us-gaap:PerformanceSharesMember2021-10-012022-06-300001418100us-gaap:PerformanceSharesMember2020-10-012021-06-300001418100us-gaap:WarrantMember2022-04-012022-06-300001418100us-gaap:WarrantMember2021-04-012021-06-300001418100us-gaap:WarrantMember2021-10-012022-06-300001418100us-gaap:WarrantMember2020-10-012021-06-300001418100us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001418100us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001418100us-gaap:EmployeeStockOptionMember2021-10-012022-06-300001418100us-gaap:EmployeeStockOptionMember2020-10-012021-06-300001418100us-gaap:ConvertibleDebtMember2022-04-012022-06-300001418100us-gaap:ConvertibleDebtMember2021-04-012021-06-300001418100us-gaap:ConvertibleDebtMember2021-10-012022-06-300001418100us-gaap:ConvertibleDebtMember2020-10-012021-06-300001418100avya:CommonStockAndCommonStockEquivalentsMember2021-04-012021-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2021-10-012022-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001418100us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001418100us-gaap:EmployeeStockOptionMember2021-10-012022-06-300001418100us-gaap:EmployeeStockMember2022-04-012022-06-300001418100us-gaap:EmployeeStockMember2021-10-012022-06-300001418100us-gaap:SeriesAPreferredStockMember2022-04-012022-06-300001418100us-gaap:SeriesAPreferredStockMember2021-10-012022-06-300001418100us-gaap:WarrantMember2022-04-012022-06-300001418100us-gaap:WarrantMember2021-10-012022-06-300001418100us-gaap:ConvertibleDebtMember2022-04-012022-06-300001418100us-gaap:ConvertibleDebtMember2021-10-012022-06-300001418100avya:SharesUnderlyingRingCentralConsiderationAdvanceMember2021-10-012022-06-300001418100avya:SharesUnderlyingRingCentralConsiderationAdvanceMember2022-04-012022-06-300001418100us-gaap:PerformanceSharesMember2022-04-012022-06-300001418100us-gaap:PerformanceSharesMember2021-10-012022-06-300001418100us-gaap:CommonStockMemberavya:StockBonusProgramMember2022-04-012022-06-300001418100us-gaap:CommonStockMemberavya:StockBonusProgramMember2021-10-012022-06-300001418100us-gaap:EmployeeStockMember2021-04-012021-06-300001418100us-gaap:SeriesAPreferredStockMember2021-04-012021-06-300001418100us-gaap:PerformanceSharesMember2021-04-012021-06-300001418100us-gaap:RestrictedStockUnitsRSUMember2020-10-012021-06-300001418100us-gaap:EmployeeStockOptionMember2020-10-012021-06-300001418100us-gaap:EmployeeStockMember2020-10-012021-06-300001418100us-gaap:WarrantMember2020-10-012021-06-300001418100us-gaap:ConvertibleDebtMember2020-10-012021-06-300001418100us-gaap:SeriesAPreferredStockMember2020-10-012021-06-300001418100us-gaap:PerformanceSharesMember2020-10-012021-06-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310001418100us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-012022-06-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2022-04-012022-06-300001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-04-012022-06-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-06-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-09-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-012022-06-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2021-10-012022-06-300001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-10-012022-06-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310001418100us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-03-310001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-012021-06-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-06-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-06-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-09-300001418100us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-10-012021-06-300001418100us-gaap:AccumulatedTranslationAdjustmentMember2020-10-012021-06-300001418100us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-10-012021-06-300001418100avya:AlightSolutionsLLCMembersrt:DirectorMember2021-04-012021-06-300001418100avya:AlightSolutionsLLCMembersrt:DirectorMember2022-04-012022-06-300001418100avya:AlightSolutionsLLCMembersrt:DirectorMember2021-10-012022-06-300001418100avya:AlightSolutionsLLCMembersrt:DirectorMember2020-10-012021-06-300001418100us-gaap:StandbyLettersOfCreditMember2022-06-300001418100us-gaap:TechnologyEquipmentMember2022-06-300001418100avya:CloudServiceHostingAgreementsMembersrt:MinimumMember2021-10-012022-06-300001418100avya:CloudServiceHostingAgreementsMembersrt:MaximumMember2021-10-012022-06-300001418100avya:CloudServiceHostingAgreementsMember2022-06-300001418100us-gaap:IndemnificationGuaranteeMember2000-10-010001418100us-gaap:ExchangeableDebtMemberus-gaap:SubsequentEventMember2022-07-122022-07-12utr:D0001418100avya:TermLoanCreditAgreementTrancheB3Memberavya:AlternativeBaseRateMemberus-gaap:SubsequentEventMember2022-07-120001418100avya:TermLoanCreditAgreementTrancheB3Memberus-gaap:SubsequentEventMemberus-gaap:FederalFundsEffectiveSwapRateMember2022-07-122022-07-120001418100avya:TermLoanCreditAgreementTrancheB3Membersrt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:SubsequentEventMember2022-07-122022-07-120001418100avya:TermLoanCreditAgreementTrancheB3Membersrt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:SubsequentEventMember2022-07-122022-07-120001418100avya:TermLoanCreditAgreementTrancheB3Memberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:SubsequentEventMember2022-07-120001418100avya:ABLCreditAgreementMemberus-gaap:SubsequentEventMember2022-10-012022-12-310001418100avya:A2022OmnibusInducementEquityPlanMemberus-gaap:SubsequentEventMember2022-07-280001418100us-gaap:SubsequentEventMember2022-07-280001418100us-gaap:SubsequentEventMember2022-12-230001418100us-gaap:SubsequentEventMember2021-10-012022-09-300001418100srt:MinimumMemberus-gaap:SubsequentEventMemberus-gaap:EmployeeSeveranceMember2023-01-012023-03-310001418100srt:MaximumMemberus-gaap:SubsequentEventMemberus-gaap:EmployeeSeveranceMember2023-01-012023-03-310001418100us-gaap:SubsequentEventMemberavya:TrademarksAndTradeNamesMemberMember2022-07-012022-09-300001418100us-gaap:SubsequentEventMemberavya:TrademarksAndTradeNamesMemberMember2022-10-012022-12-310001418100avya:NewForwardSwapsMemberus-gaap:SubsequentEventMember2022-10-012022-12-310001418100us-gaap:SubsequentEventMember2022-12-310001418100us-gaap:SubsequentEventMember2022-10-012022-12-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-38289
AVAYA HOLDINGS CORP.
(Exact name of registrant as specified in its charter)
Delaware26-1119726
(State or other jurisdiction of incorporation or organization) 
(I.R.S. Employer Identification No.)
350 Mt. Kemble Avenue07960
Morristown,New Jersey
(Address of Principal executive offices) (Zip Code)
(908) 953-6000
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common StockAVYANew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☐   No  ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☐   No  ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer ☐
Non-accelerated filer☐Smaller Reporting Company ☐
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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐   No  ☒
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.    Yes  ☐    No  ☒
As of April 30, 2023, 86,846,958 shares of common stock, $.01 par value, of the registrant were outstanding.

1


When we use the terms "we," "us," "our," "Avaya" or the "Company," we mean Avaya Holdings Corp., a Delaware corporation, and its consolidated subsidiaries taken as a whole, unless the context otherwise indicates.
This Quarterly Report on Form 10-Q (this "Quarterly Report") contains the registered and unregistered trademarks or service marks of Avaya and are the property of Avaya Holdings Corp. and/or its affiliates. This Quarterly Report on Form 10-Q also contains additional trade names, trademarks or service marks belonging to us and to other companies. We do not intend our use or display of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.
Explanatory Note
As previously disclosed in the Company’s NT 10-Q (the "12b-25") filed with the U.S. Securities & Exchange Commission (the “SEC”) on August 9, 2022, the Company was not able to timely file its quarterly report on Form 10-Q because the audit committee (the “Audit Committee”) of the Company’s board of directors was conducting internal investigations to review, among other things, the circumstances surrounding the Company’s financial results for the quarter ended June 30, 2022 and items related to a whistleblower claim. The Audit Committee has completed its planned procedures with respect to its investigations and continues to cooperate with the SEC's ongoing investigation, which could require additional procedures to be performed. The results of the investigations are disclosed in Note 1, "Background and Basis of Presentation," to the Company's Condensed Consolidated Financial Statements. Additionally, the Company has completed its impairment assessment of its long lived assets, including its intangible assets. The Company has also determined that its internal control over financial reporting is not effective as of June 30, 2022 as a result of material weaknesses disclosed in Item 4.
Additionally, on February 14, 2023 (the “Petition Date”), Avaya Holdings Corp. (“Avaya Holdings”) and certain of its direct and indirect subsidiaries (the “Debtors”) commenced voluntary cases (the “Chapter 11 Cases”) under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). On the Petition Date, the Company entered into a Restructuring Support Agreement (the “RSA”) with certain of its creditors that contemplated a prepackaged joint plan of reorganization (the “Plan”). The implementation of the Plan pursuant to the RSA did not provide for any recovery for holders of the Company’s existing common stock, par value $0.01 per share (the “Common Stock”) or Series A Convertible Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock").
After the Petition Date, following the effectiveness of a Form 25-NSE and the filing of post-effective amendments to outstanding registration statements to remove unsold securities, the Company filed a Form 15 with the United States Securities and Exchange Commission (the "SEC") to deregister its Common Stock under the Securities Exchange Act of 1934 (the “Exchange Act”) and to suspend its reporting obligations pursuant to Section 15(d)(1) of the Exchange Act, because the Company had less than 300 holders of record of each class of securities to which Securities Act registration statements related
2

at the beginning of its 2023 fiscal year. The Company is filing this report to comply with its obligations to file all reports required to be filed with the SEC not filed prior to the filing of the Form 15.
The Bankruptcy Court confirmed the Plan on March 22, 2023, and the Debtors satisfied all conditions required for Plan effectiveness and emerged from the Chapter 11 Cases as a non-reporting private company on May 1, 2023 (the "Emergence Date").


3
PART I—FINANCIAL INFORMATION

Item 1.Financial Statements.

Avaya Holdings Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share amounts)
 
Three months ended
June 30,		Nine months ended
June 30,
2022202120222021
REVENUE
Products$160 $254 $614 $746 
Services406 478 1,381 1,467 
566 732 1,995 2,213 
COSTS
Products:
Costs89 98 319 295 
Amortization of technology intangible assets35 43 112 129 
Services191 184 573 554 
315 325 1,004 978 
GROSS PROFIT251 407 991 1,235 
OPERATING EXPENSES
Selling, general and administrative236 266 743 785 
Research and development52 55 173 167 
Amortization of intangible assets39 40 119 119 
Impairment charges1,596 — 1,596 — 
Restructuring charges, net12 5 22 17 
1,935 366 2,653 1,088 
OPERATING (LOSS) INCOME(1,684)41 (1,662)147 
Interest expense(54)(54)(162)(169)
Other income, net14 10 38 11 
LOSS BEFORE INCOME TAXES(1,724)(3)(1,786)(11)
(Provision for) benefit from income taxes(42)46 (47)(8)
NET (LOSS) INCOME$(1,766)$43 $(1,833)$(19)
(LOSS) EARNINGS PER SHARE
Basic$(20.40)$0.45 $(21.45)$(0.26)
Diluted$(20.40)$0.43 $(21.45)$(0.26)
Weighted average shares outstanding
Basic86.6 84.9 85.6 84.4 
Diluted86.6 88.0 85.6 84.4 
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
1
Avaya Holdings Corp.
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited)
(In millions)
Three months ended
June 30,		Nine months ended
June 30,
2022202120222021
Net (loss) income$(1,766)$43 $(1,833)$(19)
Other comprehensive income (loss):
Pension, post-retirement and post-employment benefit-related items, net of income taxes of $0 for both the three and nine months ended June 30, 2022; and $0 and $(1) for the three and nine months ended June 30, 2021, respectively
(2)(2)(5)44 
Cumulative translation adjustment6 (9)20 6 
Change in interest rate swaps, net of income taxes of $11 and $(3) for the three and nine months ended June 30, 2022, respectively; and $0 for both the three and nine months ended June 30, 2021
41 9 109 50 
Other comprehensive income (loss)45 (2)124 100 
Total comprehensive (loss) income$(1,721)$41 $(1,709)$81 
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

2
Avaya Holdings Corp.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except per share and share amounts)
June 30, 2022September 30, 2021
ASSETS
Current assets:
Cash and cash equivalents$217 $498 
Accounts receivable, net306 307 
Inventory51 51 
Contract assets, net626 518 
Contract costs114 117 
Other current assets117 100 
TOTAL CURRENT ASSETS1,431 1,591 
Property, plant and equipment, net294 295 
Deferred income taxes, net— 40 
Intangible assets, net1,886 2,235 
Goodwill— 1,480 
Operating lease right-of-use assets104 135 
Other assets257 209 
TOTAL ASSETS$3,972 $5,985 
LIABILITIES
Current liabilities:
Debt maturing within one year$327 $— 
Accounts payable313 295 
Payroll and benefit obligations117 193 
Contract liabilities257 360 
Operating lease liabilities41 49 
Business restructuring reserves14 19 
Other current liabilities147 181 
TOTAL CURRENT LIABILITIES1,216 1,097 
Non-current liabilities:
Long-term debt2,507 2,813 
Pension obligations570 648 
Other post-retirement obligations149 153 
Deferred income taxes, net46 53 
Contract liabilities313 305 
Operating lease liabilities78 102 
Business restructuring reserves16 25 
Other liabilities231 267 
TOTAL NON-CURRENT LIABILITIES3,910 4,366 
TOTAL LIABILITIES5,126 5,463 
Commitments and contingencies (Note 18)
Preferred stock, $0.01 par value; 55,000,000 shares authorized at June 30, 2022 and September 30, 2021
Convertible series A preferred stock; 125,000 shares issued and outstanding at June 30, 2022 and September 30, 2021
132 130 
STOCKHOLDERS' (DEFICIT) EQUITY
Common stock, $0.01 par value; 550,000,000 shares authorized; 86,846,958 shares issued and outstanding at June 30, 2022; and 84,115,602 shares issued and outstanding at September 30, 2021
1 1 
Additional paid-in capital1,498 1,467 
Accumulated deficit(2,818)(985)
Accumulated other comprehensive income (loss)33 (91)
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY (1,286)392 
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY $3,972 $5,985 
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
3
Avaya Holdings Corp.
Condensed Consolidated Statements of Changes in Stockholders' (Deficit) Equity (Unaudited)
(In millions)
Common StockAdditional
Paid-In
Capital		Accumulated DeficitAccumulated
Other
Comprehensive
Income (Loss)		Total
Stockholders'
(Deficit) Equity
SharesPar Value
Balance as of September 30, 202184.1 $1 $1,467 $(985)$(91)$392 
Issuance of common stock under the equity incentive plan and the Stock Bonus Program0.9 5 5 
Issuance of common stock under the employee stock purchase plan0.2 3 3 
Shares repurchased and retired for tax withholding on vesting of restricted stock units and Stock Bonus Program shares(0.3)(7)(7)
Share-based compensation expense14 14 
Preferred stock dividends paid(1)(1)
Net loss(66)(66)
Other comprehensive income40 40 
Balance as of December 31, 202184.9 $1 $1,481 $(1,051)$(51)$380 
Issuance of common stock under the equity incentive plan0.7 — 
Issuance of common stock under the employee stock purchase plan0.3 4 4 
Shares repurchased and retired for tax withholding on vesting of restricted stock units(0.2)(3)(3)
Share-based compensation expense14 14 
Preferred stock dividends accrued(1)(1)
Net loss(1)(1)
Other comprehensive income39 39 
Balance as of March 31, 202285.7 $1 $1,495 $(1,052)$(12)$432 
Issuance of common stock under the equity incentive plan0.4 — 
Issuance of common stock under the employee stock purchase plan0.8 3 3 
Shares repurchased and retired for tax withholding on vesting of restricted stock units(0.1)(1)(1)
Share-based compensation expense2 2 
Preferred stock dividends accrued(1)(1)
Net loss(1,766)(1,766)
Other comprehensive income45 45 
Balance as of June 30, 202286.8 $1 $1,498 $(2,818)$33 $(1,286)
Balance as of September 30, 202083.3 $1 $1,449 $(969)$(245)$236 
Issuance of common stock under the equity incentive plan0.3 — 
Issuance of common stock under the employee stock purchase plan0.3 3 3 
Shares repurchased and retired for tax withholding on vesting of restricted stock units(0.1)(2)(2)
Share-based compensation expense14 14 
Preferred stock dividends accrued(1)(1)
Adjustment for adoption of new accounting standard(3)(3)
Net loss (4)(4)
Other comprehensive income17 17 
Balance as of December 31, 202083.8 $1 $1,463 $(976)$(228)$260 
Issuance of common stock under the equity incentive plan1.2 8 8 
Issuance of common stock under the employee stock purchase plan0.2 3 3 
Shares repurchased and retired for tax withholding on vesting of restricted stock units(0.3)(7)(7)
Shares repurchased and retired under share repurchase program(0.2)(7)(7)
Share-based compensation expense13 13 
Preferred stock dividends accrued(1)(1)
Net loss(58)(58)
Other comprehensive income85 85 
Balance as of March 31, 202184.7 $1 $1,472 $(1,034)$(143)$296 
Issuance of common stock under the equity incentive plan0.3 — 
Issuance of common stock under the employee stock purchase plan0.1 3 3 
Shares repurchased and retired for tax withholding on vesting of restricted stock units(0.1)(2)(2)
Shares repurchased and retired under share repurchase program(0.6)(15)(15)
Share-based compensation expense11 11 
Preferred stock dividends paid(1)(1)
Net income43 43 
Other comprehensive loss(2)(2)
Balance as of June 30, 202184.4 $1 $1,468 $(991)$(145)$333 
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
4
Avaya Holdings Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Nine months ended
June 30,
20222021
OPERATING ACTIVITIES:
Net loss$(1,833)$(19)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization303 314 
Share-based compensation30 41 
Amortization of debt discount and issuance costs21 19 
Loss on extinguishment of debt— 1 
Deferred income taxes, net27 (9)
Impairment charges1,596 — 
Gain on post-retirement plan settlement— (14)
Change in fair value of 2017 emergence date warrants(9)27 
Unrealized (gain) loss on foreign currency transactions(10)6 
Other non-cash charges (credits), net8 (1)
Changes in operating assets and liabilities:
Accounts receivable— (3)
Inventory(4)4 
Operating lease right-of-use assets and liabilities— 2 
Contract assets(162)(172)
Contract costs5 (8)
Accounts payable18 35 
Payroll and benefit obligations(110)(84)
Business restructuring reserves(11)(11)
Contract liabilities(90)(109)
Other assets and liabilities23 16 
NET CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES(198)35 
INVESTING ACTIVITIES:
Capital expenditures(80)(78)
NET CASH USED FOR INVESTING ACTIVITIES(80)(78)
FINANCING ACTIVITIES:
Shares repurchased under share repurchase program— (22)
Repayment of Term Loan Credit Agreement due to refinancing— (743)
Proceeds from Term Loan Credit Agreement due to refinancing— 743 
Repayment of Term Loan Credit Agreement— (100)
Debt issuance costs— (2)
Principal payments for financing leases(5)(10)
Payments for other financing arrangements(1)(1)
Proceeds from other financing arrangements— 3 
Proceeds from Employee Stock Purchase Plan9 10 
Proceeds from exercises of stock options1 8 
Preferred stock dividends paid(1)(1)
Shares repurchased for tax withholdings on vesting of restricted stock units and Stock Bonus Program shares(11)(11)
Other financing activities10 — 
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES2 (126)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(5)4 
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH(281)(165)
Cash, cash equivalents, and restricted cash at beginning of period502 731 
Cash, cash equivalents, and restricted cash at end of period$221 $566 
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
5
Avaya Holdings Corp.
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Background and Basis of Presentation
Background
Avaya Holdings Corp. (the "Parent" or "Avaya Holdings"), together with its consolidated subsidiaries (collectively, the "Company" or "Avaya"), is a global leader in digital communications products, solutions and services for businesses of all sizes delivering its technology predominantly through software and services. Avaya builds innovative open, converged software solutions to enhance and simplify communications and collaboration in the cloud, on-premise or a hybrid of both. The Company's global team of professionals delivers services from initial planning and design, to implementation and integration, to ongoing managed operations, optimization, training and support. The Company manages its business operations in two segments: Products & Solutions and Services. The Company sells directly to customers through its worldwide sales force and indirectly through its global network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators and business partners that provide sales and services support.
Basis of Presentation
Avaya Holdings has no material assets or standalone operations other than its ownership of its direct wholly-owned subsidiary Avaya Inc. and its subsidiaries. The accompanying unaudited interim Condensed Consolidated Financial Statements reflect the operating results of Avaya Holdings and its consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial statements. The unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and other financial information for the fiscal year ended September 30, 2021, included in the Company's Annual Report on Form 10-K filed with the SEC on November 22, 2021. In management's opinion, these unaudited interim Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal and recurring adjustments, necessary to fairly state the results of operations, financial position and cash flows for the periods indicated. The unaudited condensed consolidated results of operations for the interim periods reported are not necessarily indicative of the results for the entire fiscal year.
Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the periods reported. The Company uses estimates to assess expected credit losses on its financial assets, sales returns and allowances, the use and recoverability of inventory, the realization of deferred tax assets, annual effective tax rate, the recoverability of long-lived assets, useful lives and impairment of tangible and intangible assets including goodwill, business restructuring reserves, pension and post-retirement benefit costs, the fair value of assets and liabilities in business combinations and the amount of exposure from potential loss contingencies, among others. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the Condensed Consolidated Financial Statements in the period they are determined to be necessary. Actual results could differ from these estimates. The ongoing military conflict between Russia and Ukraine, including the sanctions and export controls that have been imposed by the U.S. and other countries in response to the conflict, severely limits commercial activities in Russia and impacts other markets where we do business. This global issue, among others, have resulted in elevated levels of inflation throughout the world, increased raw material costs and other supply chain issues all of which may affect management's estimates and assumptions, in particular those that require a projection of our financial results, our cash flows or broader economic conditions.
Board and Audit Committee Investigations
In August 2022, the Company announced a delay in the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, due to, among other things, the commencement of an investigation by the audit committee (the "Audit Committee", and such investigation, the "Financial Results Investigation") of the Company's board of directors (the "Board") related to the circumstances surrounding the Company's financial results for the third quarter of fiscal 2022, which were significantly lower than the Company's expectations and previously issued guidance. This investigation also addressed the information provided by the Company to the lenders of the Tranche B-3 Term Loans and the 8.00% Exchangeable Senior Secured Notes due 2027 which was funded in July 2022 as discussed in Note 19, "Subsequent Events."
The Company also announced the Audit Committee had commenced a separate internal investigation to review matters related to a whistleblower letter (the "Whistleblower Letter Investigation"). The Company engaged outside counsel, which reported to the Audit Committee, to assist in these investigations and notified the SEC and the Company's external auditor, PricewaterhouseCoopers LLP, about the investigations at that time.
The Company also announced in August 2022 that it was reviewing matters related to the maintenance of its whistleblower log and the proper dissemination of related information and materials. The review related to an email received by a Board member
6
prior to the filing of the Company's Annual Report on Form 10-K for fiscal year ended September 30, 2021 (the "2021 Form 10-K"). Upon receipt of the email, the Board determined to undertake an investigation, assisted by outside counsel (the “Whistleblower Email Investigation” and together with the Financial Results Investigation and the Whistleblower Letter Investigation, the "Investigations"). Upon conclusion of the Whistleblower Email Investigation, it was determined that the claims included were unsubstantiated (see Note 18, "Commitments and Contingencies").
Avaya notified the SEC of the Investigations and the SEC initiated an investigation to review, among other things, the circumstances surrounding Avaya's financial results for the quarter ended June 30, 2022.
On August 9, 2022, the Company filed a Form 12b-25 announcing a delay in the filing of its Quarterly Report on Form 10-Q for the nine months ended June 30, 2022. As a result of the activities noted above, the Company required additional time to complete its review of its financial statements and other disclosures as of June 30, 2022, and to complete its quarterly closing processes and controls, and was unable to file its Quarterly Report on Form 10-Q on or prior to the prescribed due date of August 9, 2022.
The Audit Committee has completed its planned procedures with respect to its Investigations and continues to cooperate with the SEC's on-going investigation, which could require additional procedures to be performed. The Audit Committee identified several contributing factors for the significant differences between the Company's forecasts and actual financial results for the third quarter of fiscal 2022, including:
•Inappropriate tone at the top among certain members of senior management, which resulted in a corporate culture characterized by significant pressure to meet aggressive sales projections and a failure to foster an environment of appropriate and open communication of significant matters throughout the organization and with others outside of the organization;
•A declining pipeline of existing legacy customers (with expiring maintenance contracts) eligible for migration to the Company's subscription model;
•A business model in which a significant portion of quarterly revenue is generated at the end of each quarter, making it difficult to accurately forecast revenue;
•Adverse market conditions, as well as concerns that arose during the third quarter about the Company's financial health, which negatively influenced customer sentiment; and
•The ineffective control environment with respect to tone at the top noted above contributed to additional material weaknesses, that the Company did not design and maintain effective controls over the information and communication component of the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") framework which led to an additional material weakness with respect to the ethics and compliance program. The Company did not maintain a complete and accurate whistleblower log and did not inform certain members of senior management and its external auditor about an investigation undertaken by a committee of the Board of Directors.
In addition, the investigation identified revenue of $3 million that was recognized for product shipments during the three months ended March 31, 2022 that had rights of return, and, accordingly, should not have been recognized as revenue. The Company corrected this error through an out-of-period adjustment to reverse $3 million of revenue and the corresponding profit during the three months ended June 30, 2022. This out-of-period correction was not material to any previously issued interim financial statements or the interim financial statements for the three months ended June 30, 2022 and had no impact on the financial results for the nine months ended June 30, 2022 or the year ended September 30, 2022.
The SEC is investigating the matters underlying the Audit Committee's investigation and may be subject to additional regulatory or legal proceedings. These investigations and legal proceedings may result in adverse findings, damages, the imposition of fines or other penalties, increased costs and expenses as well as the diversion of management's time and resources.
Chapter 11 Filing
On February 14, 2023 (the "Petition Date"), Avaya Holdings and certain of its direct and indirect subsidiaries (collectively, the "Debtors") commenced voluntary cases (the "Chapter 11 Cases") under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Southern District of Texas. The Chapter 11 Cases were jointly administered under the caption In re Avaya Inc., et al., case number 23-90088.
On the Petition Date, the Company entered into a Restructuring Support Agreement (the "RSA") with certain of its creditors (the "Consenting Stakeholders") and RingCentral, Inc. ("RingCentral"). The RSA contemplated a prepackaged joint plan of reorganization (the "Plan"). The Plan provided for (i) the commencement of the Chapter 11 Cases, (ii) debtor-in-possession financing facilities in the aggregate amount of approximately $628 million that were subsequently converted into exit financing facilities upon the Company's Emergence (as defined below), (iii) a fully backstopped $150 million rights offering, (iv) payment in full of all trade liabilities, (v) the repayment of approximately $225 million escrowed cash to certain senior lenders
7
and (vi) entry into amended and restated agreements with RingCentral (the "Amended and Restated RingCentral Agreements") that collectively govern the Company's commercial relationship with RingCentral upon Emergence (which agreements were entered into immediately prior to, and in connection with, the execution of the RSA).
The RSA and the Plan did not contemplate any recovery for holders of the Company's existing common stock, par value $0.01 per share (the "Common Stock") or Series A Convertible Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock").
On February 15, 2023, trading in the Company's Common Stock on the New York Stock Exchange ("NYSE") was permanently suspended and the Common Stock was delisted from the NYSE effective February 25, 2023.
To ensure their ability to continue operating in the ordinary course of business, the Debtors filed a variety of motions seeking "first day" relief, including the authority to continue using their cash management system, pay employee wages and benefits and pay vendors in the ordinary course of business. As of March 22, 2023, all "first day" relief had been granted by the Bankruptcy Court on a final basis.
The commencement of the Chapter 11 Cases constituted an event of default that accelerated and, as applicable, increased certain obligations under each of the Term Loan and ABL Credit Agreements and the indentures governing the Senior Notes, the Convertible Notes and the Exchangeable Notes (each as defined below) (collectively the "Pre-Petition Debt Instruments") and agreements described in Note 7, "Financing Arrangements," other than the DIP Term Loan (as defined below) and the DIP ABL Loan (as defined below). As of June 30, 2022, the Company was not in default under any of its debt agreements. Accordingly, at June 30, 2022, the debt was classified as current and non-current based on the stated maturities and contractual terms.
The Pre-Petition Debt Instruments provided that, as a result of the Chapter 11 Cases, the principal and interest and certain other amounts (to the extent applicable) due thereunder were immediately due and payable. Any efforts to enforce such payment obligations under the Pre-Petition Debt Instruments against the Debtors were automatically stayed as a result of the Chapter 11 Cases, and the creditors' rights of enforcement in respect of the Pre-Petition Debt Instruments were subject to the applicable provisions of the Bankruptcy Code.
Under the Plan, holders of pre-petition claims were not required to file proofs of claim and all filed proofs of claim were automatically considered objected and disputed, and all other claims (other than cure disputes/rejection claims) were deemed withdrawn and expunged as of May 1, 2023 (the "Emergence Date"). On the Emergence Date, the Company reviewed claims that had been filed and updated the claims register to reflect whether claims had been withdrawn, expunged or satisfied, as applicable, as of the Emergence Date and did not identify any adjustments to its consolidated financial statements.
Subject to certain specific exceptions under the Bankruptcy Code, the Chapter 11 Cases automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims.
The Debtors operated as debtors-in-possession in accordance with the applicable provisions of the Bankruptcy Code and entered into (a) a $500 million priming superpriority senior secured debtors-in-possession term loan facility (the "DIP Term Loan," and such facility, the "DIP Term Loan Facility") and (b) an approximately $128 million priming superpriority senior secured debtors-in-possession asset-based loan facility (the "DIP ABL Loan," and such facility, the "DIP ABL Facility"). The DIP Term Loan and DIP ABL Loan converted into exit financing upon Avaya's Emergence. See Note 7, "Financing Arrangements".
Emergence from Voluntary Reorganization under Chapter 11 of the Bankruptcy Code
The Bankruptcy Court confirmed the Plan on March 22, 2023, and the Debtors satisfied all conditions required for Plan effectiveness and emerged from the Chapter 11 Cases ("Emergence") on May 1, 2023.
On or following the Emergence Date and pursuant to the terms of the Plan, the following occurred or became effective:
▪Debtors' Equity and Indebtedness. All of the Debtors' pre-petition equity and debt facilities as well as the Debtors' securities were canceled.
▪Reorganized Company Equity. The Company's certificate of incorporation was amended and restated to authorize the issuance of 80 million shares of the Company's common stock, par value $0.01 per share (the "New Common Stock"), of which 36 million shares were issued on the Emergence Date. The Company's certificate of incorporation was also amended and restated to authorize the issuance of 20 million shares of the Company's preferred stock, par value $0.01 per share (the "New Preferred Stock"), of which no shares were issued on the Emergence Date.
▪Exit Financing. The DIP Term Loan converted into an Exit Term Loan (as defined herein) and the Company incurred an additional $310 million under the Exit Term Loan Facility (including amounts incurred pursuant to a rights offering and amounts deemed incurred pursuant to the Plan by creditors under the Pre-Petition Debt Instruments) for an
8
aggregate principal amount of $810 million, and the DIP ABL Loan converted into an Exit ABL Loan (as defined herein) in the amount of approximately $128 million. As contemplated in the bankruptcy court proceedings and approved by the court, the imputed enterprise value of the Company upon Emergence was approximately $1,426 million.
▪Contracts with Customers and Suppliers. Suppliers and customers were paid or will be paid in full in respect of pre-petition amounts owed by the Company, and the Company assumed the Amended and Restated RingCentral Agreements (as defined within Note 18, "Commitments and Contingencies") (which agreements were entered into immediately prior to, and in connection with, the execution of the RSA).
▪PBGC Settlement. The Company entered into a settlement with the Pension Benefit Guaranty Corporation (the "PBGC") providing for the assumption of the hourly pension plan and the consensual termination of the settlement with the PBGC entered into as part of the Company's 2017 plan of reorganization, including the excess contribution obligations thereunder.
▪Settlements. The Company entered into a number of other settlements, including, inter alia, those with the Consenting Stakeholders and an ad hoc group of holders of the Convertible Notes, and all of these settlements became effective on the Emergence Date.
Adoption of Accounting Standards Codification ("ASC") Topic 852
On the Emergence Date, the Company may qualify for and adopt fresh start accounting in accordance with Financial Accounting Standards Board Codification Topic 852, Reorganizations ("ASC 852"), which specifies the accounting and financial reporting requirements for entities reorganizing through Chapter 11 bankruptcy proceedings. The application of fresh start accounting would result in a new basis of accounting and the Company would become a new entity for financial reporting purposes. As a result of the implementation of the Plan and the potential application of fresh start accounting, the Consolidated Financial Statements after the Emergence Date would not be comparable to the Consolidated Financial Statements before that date, and the historical financial statements on or before the Emergence Date would not be a reliable indicator of its financial condition and results of operations for any period after the Company's adoption of fresh start accounting.
Liquidity and Going Concern
The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared assuming the Company will continue as a going concern and in accordance with GAAP. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these Condensed Consolidated Financial Statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business.
During the nine months ended June 30, 2022, the Company experienced a significant slowdown in its operations and had operating cash outflows of $198 million. Additionally, prior to the Chapter 11 Cases, the Company had been involved in discussions with its lenders relating to the financing transactions it completed in July 2022 (as described further in Note 7, "Financing Arrangements") and the scheduled June 2023 maturity of the Convertible Notes. In its Form 12b-25 in respect of the Quarterly Report on Form 10-Q for the period ended June 30, 2022 filed with the SEC on August 9, 2022, the Company indicated that in light of the Convertible Notes being characterized as a current liability and the related engagement with advisors to address the Convertible Notes, coupled with the decline in revenues during the third quarter, which represented substantially lower revenues than previous Company expectations, and the negative impact of significant operating losses on the Company’s cash balance, the Company determined that there was substantial doubt about the Company’s ability to continue as a going concern.
The Company has completed certain restructuring actions and is working to complete its remaining restructuring plan as its operating cash flows are expected to remain negative through at least fiscal 2023. The Company may take additional actions, as needed. The Company’s plans are designed to reduce its operating expenses and improve cash flows in line with its forecasted revenues. On the Emergence Date, the Company had approximately $585 million of cash and cash equivalents, and its post-Emergence debt profile was significantly improved (an aggregate principal amount of $810 million compared to $3,364 million at September 30, 2022), reducing its annual interest expense and extending the earliest maturity of its non-revolving long-term debt to 2028. This post-Emergence capital structure, coupled with restructuring actions that the Company executed to reduce its on-going operating expenses, have provided the Company with sufficient working capital to meet its operating cash flow requirements for at least one year from the issuance of these financial statements. Accordingly, as a result of the successful Emergence, the Company has alleviated the substantial doubt that had previously existed regarding the Company's ability to continue as a going concern. The Company's longer term liquidity profile will depend on successfully implementing its strategic plan which includes enhancing its product offerings, successfully partnering with alliance companies and executing on remaining cost reductions.
9
2. Recent Accounting Pronouncements
Recent Standards Not Yet Adopted
In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): "Facilitation of the Effects of Reference Rate Reform on Financial Reporting". This standard, along with other guidance subsequently issued by the FASB, contains practical expedients for reference rate reform related activities that impact debt, derivatives and other contracts. The guidance in this standard is optional and may be elected at any time as reference rate reform activities occur. The standard may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company intends to use the expedients, if needed, for the reference rate transition. The Company continues to monitor activities related to reference rate reform and does not currently expect this standard to have a material impact on the Company's Condensed Consolidated Financial Statements.
In August 2020, the FASB issued ASU 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity." This standard simplifies the accounting for convertible instruments and the application of the derivatives scope exception for contracts in an entity's own equity. The standard also amends the accounting for convertible instruments in the diluted earnings per share calculation and requires enhanced disclosures of convertible instruments and contracts in an entity's own equity. This standard is effective for the Company in the first quarter of fiscal 2023. The Company adopted the standard on a modified retrospective basis effective October 1, 2022.
Upon adoption, the Company recorded a cumulative effect adjustment which decreased the opening balance of Accumulated deficit on the Consolidated Balance Sheet by $47 million, decreased Additional paid-in-capital by $118 million and increased Debt maturing within one year and Long-term debt by $10 million and $61 million, respectively, to eliminate the historical separation of debt and equity components of the Company's convertible or exchangeable debt instruments.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." This standard requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. This standard is effective for the Company in the first quarter of fiscal 2024, with early adoption permitted. The impact of this standard will depend on the nature of future transactions within its scope.
In March 2022, the FASB issued ASU 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." This standard requires an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases measured at amortized cost. The standard also eliminates the existing troubled debt restructuring recognition and measurement guidance and, instead, requires an entity to evaluate whether the modification represents a new loan or a continuation of an existing loan in a manner consistent with other loan modifications. This standard is effective for the Company in the first quarter of fiscal 2024, with early adoption permitted. The Company is currently assessing the impact the new guidance will have on its consolidated financial statements.
In September 2022, the FASB issued ASU 2022-04, "Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." This standard requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments in this standard do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The standard is effective for the Company in the first quarter of fiscal 2024, with early adoption permitted. Certain disclosures required by the standard are effective in the first quarter of fiscal 2025. The Company is currently assessing the impact the new guidance will have on its disclosures within its consolidated financial statements.
10
3. Contracts with Customers
Disaggregation of Revenue
The following tables provide the Company's disaggregated revenue for the periods presented:
Three months ended
June 30,		Nine months ended
June 30,
(In millions)2022202120222021
Revenue:
Products & Solutions$160 $254 $614 $746 
Services406 478 1,381 1,468 
Unallocated Amounts
— — — (1)
Total Revenue$566 $732 $1,995 $2,213 
Three months ended June 30, 2022Three months ended June 30, 2021
(In millions)Products & SolutionsServicesTotalProducts & SolutionsServicesTotal
Revenue:
U.S.$75 $235 $310 $131 $287 $418 
International:
Europe, Middle East and Africa52 91 143 76 105 181 
Asia Pacific
20 43 63 27 45 72 
Americas International - Canada and Latin America13 37 50 20 41 61 
Total International85 171 256 123 191 314 
Total Revenue$160 $406 $566 $254 $478 $732 
Nine months ended June 30, 2022Nine months ended June 30, 2021
(In millions)Products & SolutionsServicesTotalProducts & SolutionsServicesUnallocatedTotal
Revenue:
U.S.$319 $788 $1,107 $359 $886 $— $1,245 
International:
Europe, Middle East and Africa172 338 510 241 323 (1)563 
Asia Pacific73 138 211 86 138 — 224 
Americas International - Canada and Latin America50 117 167 60 121 — 181 
Total International295 593 888 387 582 (1)968 
Total Revenue$614 $1,381 $1,995 $746 $1,468 $(1)$2,213 
Unallocated amounts represent the fair value adjustment to deferred revenue recognized upon the Company's emergence from bankruptcy in December 2017 and excluded from segment revenue.
Transaction Price Allocated to the Remaining Performance Obligations
The transaction price allocated to remaining performance obligations that were wholly or partially unsatisfied as of June 30, 2022 was $2,224 million, of which 52% and 25% is expected to be recognized within 12 months and 13-24 months, respectively, with the remaining balance expected to be recognized thereafter. This excludes amounts for remaining performance obligations that are (1) for contracts recognized over time using the "right to invoice" practical expedient, (2) related to sales or usage based royalties promised in exchange for a license of intellectual property and (3) related to variable consideration allocated entirely to a wholly unsatisfied performance obligation.
11
Contract Balances
The following table provides information about accounts receivable, contract assets, contract costs and contract liabilities for the periods presented:
(In millions)June 30, 2022September 30, 2021Increase (Decrease)
Accounts receivable, net$306 $307 $(1)
Contract assets, net:
Current$626 $518 $108 
Non-current (Other assets)138 88 50 
$764 $606 $158 
Cost of obtaining a contract:
Current (Contract costs)$86 $89 $(3)
Non-current (Other assets)50 53 (3)
$136 $142 $(6)
Cost to fulfill a contract:
Current (Contract costs)$28 $28 $— 
Contract liabilities:
Current$257 $360 $(103)
Non-current313 305 8 
$570 $665 $(95)
The increase in Contract assets was mainly driven by growth in the Company's subscription offerings. The decrease in Contract liabilities was mainly driven by anticipated declines in hardware maintenance and software support services as customers continue to transition to the Company's subscription hybrid offering. The decrease was also driven by reductions in the consideration advance received in connection with the strategic partnership with RingCentral as revenue was earned during the period.
During the three and nine months ended June 30, 2022 and 2021, the Company did not record any asset impairment charges related to contract assets.
During the nine months ended June 30, 2022 and 2021, the Company recognized revenue of $380 million and $503 million that had been previously recorded as a Contract liability as of October 1, 2021 and October 1, 2020, respectively.
During the three months ended June 30, 2022 and 2021, the Company recognized a (decrease) increase in revenue of $(14) million and $1 million, respectively, for performance obligations that were satisfied, or partially satisfied, in prior periods. During the nine months ended June 30, 2022, the Company recognized a decrease in revenue of $6 million for performance obligations that were satisfied, or partially satisfied, in prior periods. During the nine months ended June 30, 2021, adjustments for performance obligations that were satisfied, or partially satisfied, in prior periods were not material.
As disclosed in Note 19, "Subsequent Events," the Company and RingCentral entered into the Amended and Restated RingCentral Agreements.
12
Contract Costs
The following table provides information regarding the location and amount for amortization of costs to obtain and costs to fulfill customer contracts recognized in the Company's Condensed Consolidated Statements of Operations for the periods presented:
Three months ended
June 30,		Nine months ended
June 30,
(In millions)2022202120222021
Costs to obtain customer contracts:
Selling, general and administrative$35 $47 $115 $138 
Revenue5 3 15 7 
Total Amortization$40 $50 $130 $145 
Costs to fulfill customer contracts:
Costs$2 $7 $17 $21 
Allowance for Credit Losses
The following table presents the change in the allowance for credit losses by portfolio segment for the period indicated:
(In millions)
Accounts Receivable(1)
Short-term Contract Assets(2)
Long-term Contract Assets(3)
Total
Allowance for credit loss as of September 30, 2021$4 $1 $1 $6 
Adjustment to credit loss provision2 — 1 3 
Write-offs, net of recoveries(2)— — (2)
Allowance for credit loss as of June 30, 2022$4 $1 $2 $7 
(1)Recorded within Accounts receivable, net on the Condensed Consolidated Balance Sheets.
(2)Recorded within Contract assets, net on the Condensed Consolidated Balance Sheets.
(3)Recorded within Other assets on the Condensed Consolidated Balance Sheets.
4. Goodwill and Intangible Assets, net
Goodwill
The changes in the carrying amount of goodwill by segment during the nine months ended June 30, 2022 were as follows:
(In millions)Products & SolutionsServicesTotal
Balance as of September 30, 2021
Cost$1,281 $1,480 $2,761 
Accumulated impairment charges(1,281)— (1,281)
— 1,480 1,480 
Impairment charges— (1,471)(1,471)
Foreign currency fluctuations— (7)(7)
Other— (2)(2)
Balance as of June 30, 2022
Cost1,281 1,471 2,752 
Accumulated impairment charges(1,281)(1,471)(2,752)
$— $— $— 
Goodwill is not amortized but is subject to periodic testing for impairment in accordance with GAAP at the reporting unit level. The Company's goodwill is assigned to its Services reporting unit and is subject to impairment testing annually, on July 1st, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
The Company concluded that a triggering event occurred during the three months ended June 30, 2022 primarily due to (i) a sustained decrease in the market value of the Company's debt and common stock and (ii) a significant decline in revenues during the third quarter, which represented substantially lower revenues than the Company's expectations. As a result, the Company performed an interim quantitative goodwill impairment test as of June 30, 2022 to compare the fair value of the
13
Services reporting unit to its carrying amount, including the goodwill. The Company's accounting policy is to estimate the fair value of the reporting unit using a weighting of fair values derived from an income and a market approach.
Under the income approach, the fair value of a reporting unit is estimated using a discounted cash flows model. Future cash flows are based on forward-looking information regarding revenue and costs of the reporting unit and are discounted using an appropriate discount rate. The discounted cash flows model relies on assumptions regarding revenue growth rates, projected earnings (excluding interest and taxes), working capital needs, technology expenses, business restructuring costs and associated savings, capital expenditures, income tax rate, discount rate and terminal growth rate. The discount rate the Company used represents the estimated weighted average cost of capital, which reflects the overall level of inherent risk involved in the reporting unit's operations and the rate of return an outside investor would expect to earn. To estimate cash flows beyond the final year of its model, the Company used a terminal value approach. Under this approach, the Company applied a perpetuity growth assumption to determine the terminal value. The Company incorporated the present value of the resulting terminal value into its estimate of fair value. Forecasted cash flows consider current economic conditions and trends, estimated future operating results, the Company’s view of growth rates and anticipated future economic conditions. Revenue growth rates inherent in this forecast are based on input from internal and external market intelligence research sources that compare factors such as growth in global economies, regional industry trends and product evolutions. Macroeconomic factors such as changes in local and/or global economic conditions, changes in interest rates, product evolutions, industry consolidations and other changes beyond the Company’s control could have a positive or negative impact on achieving its targets.
The market approach estimates the fair value of the reporting unit by applying multiples of operating performance measures to the reporting unit's operating performance (the "Guideline Public Company Method"). These multiples are derived from comparable publicly-traded companies with similar investment characteristics to the Services reporting unit. The key estimates and assumptions that are used to determine the fair value under this market approach include current and forward 12-month operating performance results, as applicable, and a selection of the relevant multiples. Although the Company previously used a weighting of the market approach and income approach in estimating the fair value of its reporting units, the Company did not assign a weighting to the market approach for the interim goodwill impairment assessment as of June 30, 2022 given the limited availability of publicly traded comparable companies that accurately reflect the same economic outlook and risk profile as Avaya, and instead relied solely on the income approach to estimate the fair value of the Services reporting unit as of June 30, 2022.
The result of the Company's interim goodwill impairment test as of June 30, 2022 indicated that the carrying amount of the Company's Services reporting unit exceeded its estimated fair value primarily due to a reduction in the Company's outlook to reflect the observed earnings shortfall which was caused primarily by a slowdown in the pace and trajectory of customer migration to the Company's subscription hybrid offering and an increase in the discount rate to reflect increased risk from higher market uncertainty. As a result, the Company recorded a goodwill impairment charge of $1,471 million to write down the full carrying amount of the Services goodwill within the Impairment charges line item in the Condensed Consolidated Statements of Operations.
14
Intangible Assets, net
The Company's intangible assets consist of the following for the periods indicated:
(In millions)
Technology
and Patents		Customer
Relationships
and Other
Intangibles		Trademarks and Trade NamesTotal
Balance as of June 30, 2022
Finite-lived intangible assets:
Cost$968 $2,150 $42 $3,160 
Accumulated amortization(765)(704)(24)(1,493)
Finite-lived intangible assets, net203 1,446 18 1,667 
Indefinite-lived intangible assets:
Cost— — 333 333 
Accumulated impairment— — (114)(114)
Indefinite-lived intangible assets, net— — 219 219 
Intangible assets, net$203 $1,446 $237 $1,886 
Balance as of September 30, 2021
Finite-lived intangible assets:
Cost$971 $2,154 $42 $3,167 
Accumulated amortization(656)(588)(21)(1,265)
Finite-lived intangible assets, net315 1,566 21 1,902 
Indefinite-lived intangible assets— — 333 333 
Intangible assets, net$315 $1,566 $354 $2,235 
Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Intangible assets determined to have indefinite useful lives are not amortized but are subject to impairment testing annually, on July 1st, or more frequently if events occur or circumstances change that indicate an asset may be impaired.
As a result of the goodwill triggering event described above, the Company performed a recoverability test on all of its finite-lived asset groups as of June 30, 2022 before proceeding to the goodwill impairment assessment and concluded that no impairment charge was necessary. The recoverability test of finite-lived assets was based on forecasts of undiscounted cash flows for each asset group.
The Company also performed an interim quantitative impairment test for its indefinite-lived intangible asset, the Avaya Trade Name, as of June 30, 2022 to compare the fair value of the Avaya Trade Name to its carrying amount. The fair value of the Avaya Trade Name was estimated using the relief-from-royalty model, a form of the income approach. Under this methodology, the fair value of the trade name was estimated by applying a royalty rate to forecasted net revenues which was then discounted using a risk-adjusted rate of return on capital. The model relies on assumptions regarding revenue growth rates, royalty rate, discount rate and terminal growth rate. Revenue growth rates inherent in the forecast were based on input from internal and external market intelligence research sources that compare factors such as growth in global economies, regional industry trends and product evolutions. The royalty rate was determined using a set of observed market royalty rates. The discount rate the Company used represents the estimated weighted average cost of capital, which reflects the overall level of inherent risk and the rate of return an outside investor would expect to earn. To estimate royalty cash flows beyond the final year of its model, the Company used a terminal value approach. Under this approach, the Company applied a perpetuity growth assumption to determine the terminal value. The Company incorporated the present value of the resulting terminal value into its estimate of fair value. The result of the interim impairment test of the Avaya Trade Name as of June 30, 2022 indicated that the carrying amount of the Avaya Trade Name exceeded its estimated fair value primarily due to a reduction in the Company's outlook to reflect the observed revenue decline which was caused primarily by a slowdown in the pace and trajectory of customer migration to the Company's subscription hybrid offering and lower than anticipated on-premise license sales and an increase in the discount rate to reflect increased risk from higher market uncertainty. As a result, the Company recorded an indefinite-lived intangible asset impairment charge of $114 million within the Impairment charges line item in the Condensed Consolidated Statements of Operations, representing the amount by which the carrying amount of the Avaya Trade Name exceeded its fair value. As of June 30, 2022, the remaining carrying amount of the Avaya Trade Name was $219 million.
Refer to Note 19, "Subsequent Events," for additional information regarding triggering events identified subsequent to June 30, 2022.
15
5. Supplementary Financial Information
The following table presents a summary of Other income, net for the periods indicated:
Three months ended
June 30,		Nine months ended
June 30,
(In millions)2022202120222021
OTHER INCOME, NET
Interest income$1 $— $2 $1 
Foreign currency gains, net6 4 8 3 
Gain on post-retirement plan settlement— — — 14 
Other pension and post-retirement benefit credits, net